2016 – 17, Heavy Commercial Vehicles Sales – A round up.

Commercial Vehicle sales:

  • Overall volume of Commercial vehicles sales stood at 7,14,232 Nos and grew by 4.2%.
  • M&HCV truck  and bus volumes were flat at 3,02,529 Nos. Goods carriers contribute to more than 80% of the volume.

Overall sales commercial vehicle sales

M&HCV Goods carrier

  • M&HCV trucks had a flat sales and totalled to 2,55,267 Nos (-1.25%).
  • Trucks contributed to 84% of M&HCV volumes to 255267
  • Primary reasons attributed to reduced sales are demonetisation, lack of clarity in GST implementation deadline, lso in the final rounds, due to ban on BS III vehicle registration.
  • Unlike LCV’s M&HCV’s were largely BSIII and even pre buying of BSIII vehicles were lower than expected.

Sales manufacturer wise

Segment leader Tata motors saw a dip is sales upto 8% to 1,30,703 nos. Ashok Leyland saw increase in sales to 84,588 nos up by 6.7%. SML saw 26.5% increase in sales to 3366 nos. Eicher and Mahindra saw increase in sales to 28,611 nos and 6,714 nos resp, up by 6.89% and 17.69% resp. Mahindra is extensively investing in high decibel marketing and is promising better fuel performance than others. We should agree that the marketing efforts are bringing sales and is witnessed in the sales chart.

M&HCV Goods sales Mfr. wise

Market share manufacturer wise:

Tata leads the segment with a huge market share at 51% followed by Ashok Leyland at 33%. But in contrast Ashok Leyland is gaining market share YoY from 2014-15 and Tata Motors is loosing its grip from 57% in 2014 to 51% this year. Eicher stands at a distance 3rd place with 11% market share and has also gained from last year.

M&HCV MS Goods Mfr. wise

M&HCV Passenger carrier

  • M&HCV bus sales grew by 7.6% to 47,262 Nos.
  • Buses contributed to 16% of M&HCV volumes to 47262
  • STU sales could have been better if Govt. actively pushed Amrut and fund allocation for new purchases.

Sales manufacturer wise

Ashok Leyland saw a dip in sales upto 9.5% to 17,725 nos. Primary reason being more orders from STU’s are now grabbed by Tata and Eicher. Tata made a splendid performance and increased its sales 22% to 18,198 nos. Eicher is making its entry into STU segment slowly and steadily and repeat orders from KeSRTC, KaSRTC are evident for this. Saw a massive 30% sales increase to 5,973 nos. Splitting these figures between ICV and M&HCV, the later registered a growth of 130% to 2,582 nos.

M&HCV Passenger sales Mfr. wise

Market share manufacturer wise:

Tata takes the centre stage at 38.5% MS against the Ashok Leyland MS of 37.5%. Traditionally Ashok Leyland used to lead in heavy bus market and it was all time high at 64% last year. This when fell to 48% this year had took a toll in its market share. Eicher continues to climb the stares and is currently at 12.6% market share, followed by SML Isuzu and Mahindra.

M&HCV MS passenger Mfr. wise

Overall M&HCV Market share

Overall in M&HCV space Tata still tops the market but fall in sales is worry some. Ashok Leyland is continuing to grow in the second position followed by Eicher. Though Bharat Benz has not released its sales figures for the financial year, for the annual year ended 2016 it has released figures of 13,081 nos. We expect much better sales for BharatBenz this year, primarily due to their readiness in BS IV range and product availability. For the first quarter the sales is likely to be much better for BhratBenz.

M&HCV MS overall Mfr. wise

Outlook:

Commercial vehicle industry is one of the worst hit, when BSIII emission vehicles were banned. Its expected that close to 90000 trucks and buses are in inventory. While major manufacturers have opted for converting them to BSIV, the price increase upto 10% can dampen the sales upto 2nd qtr. While every manufacturer is increasing the price for BSIV, BharatBenz announcing the launch of BSIV trucks at BSIII price, is likely to create fresh rounds of price war. Preponing Scrappage policy, higher allocation of funds for Infrastructure from GoI, GST implementation can have a positive impact in the Industry. Estimated increment in sales upto 7%.

Disclaimer : All information contained herein has been obtained by CV News.in, from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, CV News in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and CV News.in shall not be liable for any losses incurred by users from any use of this publication or its contents. Volvo buses, Scania Commercial Vehicles, Daimler India Commercial vehicle sales aren’t included while preparing reports.

Source : SIAM

2 Comments on "2016 – 17, Heavy Commercial Vehicles Sales – A round up."

  1. An overnight journey on NH4 will give a rough idea about market share. The graph above can never be conclusive without numbers from DICV and MAN. BB is dominating the Tipper segment across south Indian states and MAN has good numbers in Transit mixer.

    Every manufacturer may see a big dip in Q1 this year as fleet owners will have a wait and watch approach. Yes the brand ‘BharatBenz’ may attract a few operators during initial few weeks of BS4 era, but ALL will definitely come strong in Long haul segment at least.

    TML may have snatched the market share in bus segment, but as STUs have tender process, the bidding price must have hurt the revenues. Moreover TML is pushing 1512 buses, where as AL’s minimum power rating starts from 160hp, probably STU technical committee went in favour of mileage.

    • We do agree on the fact that, there will be slight correction in MS when we include MAN and BharatBenz. Until the manufacturers are open about the sales figures, we can’t give an estimated fig.

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