30 Nov 2021
With sales of 16,161 Maxima, Bajaj Auto has overtaken former leader Piaggio (13,351 units/-25%). Mahindra's market share rose to 16% from 2% a year ago with 6,613 units.
The rise in e-commerce and last-mile deliveries is positively impacting the demand for goods carrying three-wheelers required for urban operations. With easy manoeuvrability, these wheelers can navigate tight roads and enter locations where 4-wheelers would fear to tread.
The total sales of passenger carrying 3-wheelers is 41,280 units which is half of the total sales of 3-wheeler goods carriers that is 85,915 units in April-October 2021.
Bajaj Auto - The New Good Carrier Leader
Just look at the sales figures of the good-carrier three-wheeler industry, and there are some interesting facts when it comes to market share. The great news is that Bajaj Auto, a leader in the passenger three-wheeler segment with a 72% market share, is now No. 1 in the freight carriers.
With sales of 16,161 Maxima in the first seven months of FY 2021 (26%) and 26% YoY growth (April-October 2020: 12,767), Bajaj has a 39% market share, growing by 4%. In the process, it has given the top spot to former leader Piaggio, who has now dropped to second.
The market shift from expensive diesel to cheaper CNG is seen in the fuel-wise segmentation for the Bajaj Maxima. Its CNG model saw an increase of 250% to 6,671 units (from 1,904 units a year ago) and a decline of 12.63% to 9,490 units (10,863 units a year ago) for the diesel variant.
Diving diesel demand affects Piaggio, which offers CNG and electric models
The same trend is with Italian OEM Piaggio, but the market leader, mainly sells diesel-engined models, has seen a tough April-October 2021. The sales and market share data table below shows that it has seen a significant drop in sales. - 25% down to 13,351 units from 17,830 units a year ago. This has resulted in the market share falling 17% to 32.34% from 49.46% in April-October 2020.
A closer look at the fuel-wise variant split reveals that the rapid shift from diesel-engined model to CNG and electric had hurt Piaggio. The company sold a total of 7,708 diesel three-wheelers in April-October 2021, down 55% on a year-on-year basis (April-October 2020: 17,386). Still, Piaggio is taking a step back to protect its turf – it has transitioned to CNG and electric power, a move that has already started to pay off. The company sold 2,750 CNG units, up 519% YoY (April-October 2020: 444 units), 1,686 electric three-wheelers that it launched in this financial year, and 1,207 petrol variants as well. Piaggio is extremely bullish on its electric model and is rapidly setting up EV showrooms across the country and in key markets like Bihar.
Mahindra Alfa on a Roll, Treo Zor Shows Punch
Making the most of it is the new Number 3 player - Mahindra & Mahindra. M&M, which sold 735 units in April-October 2020, has registered a sterling performance a year later - 6,613 units, which constitutes an 800% YoY growth on a year-ago basis. M&M has two models - Alfa with diesel engine and electric Treo. Surprisingly, despite riding on diesel power, the Alfa has registered decent growth - 5,064 units, marking a 600% year-on-year growth - while the cargo-carrying Treo Zor has sold 1,549 units. However, there is an increase of 12808% on a year-ago basis.
Image (Table)
Growth Outlook
The data table below gives a lot of indications as to where the three-wheeler freight carrier market is headed. After posting 14.50% YoY growth in the first seven months of FY2022, things could turn better for this segment. Further, with recent surveys revealing that retail demand for FMCG and other consumables from rural India is in line with urban demand, three-wheeler OEMs can expect even more business from e-commerce, logistics and last-mile delivery operators.
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