Commercial Vehicle Sales took a downturn in December 2018
The domestic commercial vehicle industry witnessed a slump in demand in December 2018 for most of the manufacturers. Medium & Heavy Commercial Vehicles (MHCV) segment has been impacted the most on account of tight liquidity, relaxation of increased GVW norms for existing trucks and a higher base effect of December 2017. Due to the government’s regulation for blower / AC becoming mandatory in trucks starting Jan 2018, the pre-buying had resulted in a higher sales in Dec 2017.
Therefore, Commercial Vehicle manufacturers dominating the MHCV trucking like Tata Motors and Ashok Leyland, have been impacted more than others. MHCV trucks of Tata Motors Commercial Vehicles have declined by 27% to 11506 units as against 15828 trucks sold in Dec 2017. Likewise, Ashok Leyland’s MHCV truck sales witnessed steep decline of 29% from 15948 last year to 11295 units in Dec 2018.
However, the Light Commercial Vehicles (LCV), Intermediate Commercial Vehicles (ICV) and Small Commercial Vehicles (SCV) segment has largely remained flat year on year due to evolving E-commerce space along with hub and spoke model of last mile distribution. This is the reason why LCV & ICV dominating CV manufacturers like Volvo Eicher (VE Commercial Vehicles) and Mahindra have remained almost flat.
The LCV & ICV trucks (Intermediate and Light Commercial Vehicles) segment of Tata Motors witnessed a marginal fall of 5% over last year, at 4846 units. Whereas the Tata Small Commercial Vehicles (SCV & Pickups) segment continued to grow by 8%, delivering volumes of 16367 units as against 15105 units in year ago period. Likewise the Light Commercial Vehicle sales of Ashok Leyland stood at 4198 units as against 3303 units last year.
Mahindra & Mahindra (M&M), part of USD 20.7 billion, sold 16906 commercial vehicles vis a vis 17542 units last year, a slight decline of 4%. The Commercial Vehicle arm of Maruti Suzuki sold 1675 units of its Super Carry mini truck, a whopping 131% increase over last year, majorly attributed to increasing dealership network. SML Isuzu, the makers of light and intermediate trucks and buses, known for its affordability factor, declined by 16% to 817 units as against 974 units sold in Dec 2017.
Tempo Traveller, the market leader in tour & travels segment, Force Motors also reported a 12% decline in Dec 2018 sales figures to 891 units from year ago figures of 1009 units.