Commercial Vehicle Volumes Will Pick Up Due To Economic Revival

Acuite Ratings and Research Agency said the volume of commercial vehicles is set to increase with the current economic revival. According to the agency, easing of restrictions on movement of goods by various state governments and recovery in the core infrastructure sector remain positive for the CV industry.

Agency’s chief analytics officer Suman Chowdhury said, “The combined domestic sales of Ashok Leyland, Tata Motors, and VECV witnessed a growth of 7.5% YoY in September 2021.”

“However, Mahindra & Mahindra's domestic sales declined by 26.8% year-on-year during the same period due to supply constraints”.

On a sequential basis, the agency said the aggregate sales of all the four CV manufacturers encouraged 14% MoM growth in October 2021 as compared to September 2021.

"The CV industry registered a growth of 3.2%, primarily on account of healthy recovery in domestic sales by market leaders Tata Motors and Ashok Leyland respectively."

Suman Chowdhury also added, “We believe that overall demand for CVs will continue to strengthen in the near to medium term as the pace of industrial activity and capital expenditure from both public and private sectors picks up."

In the case of the PV segment, the agency said its volumes continued to show a slowdown in October 2021, as reported by the top 14 players in India. 

Volumes contracted 33.4% year-on-year at the peak of the festive season mainly due to production challenges across the region due to severe global semiconductor shortages.

The agency noted that among the major players, only Tata Motors was able to register a year-on-year growth of 43.6% with a growth of 31.8% on a sequential basis due to its new product launches. 

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