Twitter
Advertisement

CV sales zip in double digits in December as economy grows

As the economy picks up steam, commercial vehicle sales are front-running the tide.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

As the economy picks up steam, commercial vehicle sales are front-running the tide.

Almost all commercial vehicle (CV) makers reported double-digit growth in December, traditionally a slack month, indicating recovery after headwinds and regulatory challenges of last year.

The steady production ramp-up of new vehicle ranges and continued uptick in the consumption-driven sectors, including e-commerce, fuelled the growth, said industry insiders.

As per the figures available with Mumbai-based Tata Motors, domestic CV sales grew 62% last month at 40,447 units compared to 24,998 units in December 2016.

"The steady production ramp-up of the new range of BS4 vehicles and a continued uptick in sales in the consumption-driven sectors have led the growth." the company said in a statement. Its cumulative domestic CV sales during April-December 2017 were 269,536 units, a year-on-year growth of 17%.

Within the CV segment, medium & heavy commercial vehicle (M&HCV) trucks witnessed a robust 83% sales growth at 15,828 units over last year. Likewise, intermediate and light commercial vehicle (I&LCV) truck segment sales grew 78% at 5,103 units over the last year, driven by consumption-led sectors.

Also, pick-up segment grew 43% to 4,529 units over the year-ago period its Xenon Yodha and the Mega range got wider acceptance and volumes across markets. Its small commercial vehicle (SCV) sales at 10,576 units, witnessed a growth of 60% over last year on the back of a strong response to Ace XL range. The commercial passenger carrier segment (including buses) grew 19% at 4,411 units.

Ashok Leyland, the Hinduja Group flagship, on Tuesday reported a 79.41% jump in total sales at 19,253 units in December 2017 over the same month a year ago. M&HCV sales zoomed 81.62% to 15,950 units against 8,782 units in the year-ago month. Light commercial vehicle (LCV) sales rose 69.47% to 3,303 units compared with 1,949 units in December 2016, it said.

Mahindra & Mahindra (M&M) too posted an impressive sales tally for December as its M&HCV sales grew 151% to 1,193 vehicles. Exports in December 2017 stood at 2,221 vehicles, a growth of 8%. Rajan Wadhera, president, automotive sector, M&M, said, "Our commercial vehicles growth for December has been encouraging at 24%, and we are particularly buoyed by our ongoing strong performance in the M&HCV segment which indicates a vibrancy in the economy."

Sridhar V, partner at Grant Thornton India LLP, said CV sales growth has been in double digits due to a combination of factors such as good monsoon, uptick in the retail consumption, good finance availability and new introductions including fuel-compliant ones. "2018 should continue to be positive going by this trend in 2017 for commercial vehicles." Sridhar said.

IN FAST LANE

  • Tata Motors’s domestic CV sales grew 62% last month at 40,447 units compared to December 2016
     
  • M&M too posted an impressive sales tally for December as its M&HCV sales grew 151% to 1,193 vehicles
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement