It is becoming a trend every year for the CV sector to absorb a dip in sales in the first month of the new financial year, and it happens because of the pre-buying of vehicles in March.
The commercial vehicle industry registered sales of 60,246 units in April 2023, which was 5% low than the 63,245 units of last year in the same period. Moreover, if we compare the sales drop from last month, we see a decline of 34%.
In every new fiscal year, we can see this trend of decline in sales in the first month. But this significant double-digit fall in sales can be attributed to the pre-buying of vehicles in March. And the main reason behind all this is the introduction of BS6 OBD2, new engine norms. This new engine norm has increased the price of Commercial Vehicles across all categories. This migration is less significant than the migration from BS4 to BS6.
Detailed Review of the Sales of the Biggest CV Brands in India
Tata Motors - Tata is one of the largest CV makers in India, sold 21,507 units which dropped by 28% Y-o-Y and 39% if we compare it to the previous month. The company is experiencing a slowdown across its categories in which the I&LCV range is getting more than 60 losses on both Y-o-Y Basis and M-o-M basis.
Mahindra Truck & Bus - Mahindra is the Commercial Vehicle arm of Mahindra Group, sold 20,231 units, including all the categories, and grew its sales on a Y-o-Y basis. But, if we compare it to the previous month's number, we can see that apart from the LCV up to 2-tonne segment, all others saw a decline in sales.
Ashok Leyland - The brand sold 12,366 units which is 10% higher than the exact same period of last year but dropped 46% compared to the March 2023 Sales. The M&HCV segment declined by 52% on average compared to March 2023.
VECV (Volvo Eicher Commercial Vehicles) - Volvo Trucks India and Eicher Motors' joint venture reported a total sales of 6,142 units. This number was 29% higher in Y-o-Y sales but 45% lower than last month.
According to the forecast, the CV sector, especially the M&HCV segment, is expected to get paced with ongoing and upcoming infrastructure projects.
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