Tata Motors Set to Reclaim LCV Leader Position from M&M
Published On Feb 25, 2016
Tata has long been the segment leader in the LCV and SCV space. The last year, however, the company had faced increasingly tight competition from Mahindra, which was picking up a sizeable market share with its own models. In a recent reports, it has been indicated that Mahindra had surpassed Tata's market share in the LCV territory. A string of new releases from M&M garnered unexpected success, such as the Jeeto, the Imperio and the Supro.
However, Tata has reclaimed its dominant position in the segment. In November 2015, Tata sold around 11,865 units while in December, the figure rose to 13,108 units. Meanwhile, M&M held off Tata with just 14,325 units in November, while in December, the figure staggered to 11,876. Although Mahindra's sales picked up in the next few months, this indicates a trend of revival for the Indian major.
Tata's long running success in the segment has often been attributed to the Ace, a mini truck that has received acclaim across the industry since its release. Since its release in 2005, the Ace platform has grown to accommodate a range of models, many of which are used in everyday transport across the country. Ravindra Pisharody, Executive Director at Tata Motors, said, “You have to look at longer periods of growth or decline in this segment. Somebody was stronger in pick-up vehicles. Our Ace had seen a drop and that was hurting us; it has started recovering. The Ace Mega is counted as a pick-up and doing well. I am confident this will only get better.”
In the 2015 financial year, a slowdown in the economy left a huge impact in LCV sales, which had plummeted by nearly 11.6 percent. Off late, however, the demand for the segment seems to be re-routing, a 6.5 percent growth in sales for this January. These positive indications could carry a revival in sales for many LCV players in the country, including Tata and Mahindra.