Improvement in economic activities such as freight movement and roads construction, the commercial vehicle segment has grown by 19 per cent year-on-year (YoY) between January and March to 2,49,806 units as compared with 2,10,356 units in corresponding period last year.
According to sources from Tata Motors and Ashok Leyland, demand for the CNG CVs is increasing across India, with the availability of this alternate fuel in many smaller cities.
LCV sales up
The total LCV sales increased by 20 per cent to 1,55,832 units during January-March period compared to 1,29,822 units in the same period last year, according to the latest data from the Society of Indian Automobile Manufacturers (SIAM).
Tata Motors, which has the largest market share in the Indian CV industry also reported that its sales in the fourth quarter of FY22 were recorded at 1,10,027 units, which was around 21 per cent higher than the previous quarter (Q3 FY22) and 12 per cent higher than the same quarter last year (Q4 FY21).
MHCV Segment
“The medium and heavy commercial vehicle (MHCV) segment grew by more than 51 per cent compared to the previous quarter, while being 20 per cent ahead of the same quarter (Q4) last year, owing to increased activity in road construction, mining and improved infrastructure spending by the Central and State governments,” Girish Wagh, Executive Director, Tata Motors said recently.
Early signs of recovery have also been observed in the otherwise worst-affected CV passenger segment, he added.
“We are cautiously optimistic about domestic MHCV and intermediate and light commercial vehicle (ILCV) demand while keeping a close eye on geopolitical developments, fuel inflation and semiconductor shortage,” he said.
Similarly Mahindra & Mahindra sold 19,837 vehicles in March this year, a growth of 16 per cent YoY as compared with 17,116 units in March last year.
The company recently announced a partnership with CSC Grameen eStore for its small commercial vehicle (SCV) product line , so that it can reach out to the remote villages as well.
CSC Grameen eStore is a subsidiary of CSC eGovernance Services, and customers can inquire about select Mahindra SCV models such as Supro and Jeeto by visiting the nearest store.
“This partnership is an appropriate step to further strengthen our rural foothold and there is no better partner than CSC Grameen eStore to help us improve our customer experience,” said Amit Sagar, Business Head – SCV at Automotive division. M&M said.