LCV Market to See a Double-Digit Increase in FY22

News Date 28 Sep 2021

LCV Market to See a Double-Digit Increase in FY22

The LCV division sold around 36,000 units in FY20, which decreased to 30,000 units in FY21. But after an initial drop in FY22, there has been a recovery in the last two months. So with a 10-15% growth in sales expected in FY22.”

Volumes in the LCV truck class are set to bounce back in FY22 with double-digit growth, riding on the back of the market from e-commerce, FMCG, parcel services, construction, poultry and cold storage segments. “The industry has leapt back. We will see a pretty powerful comeback,” chief executive officer, automotive sector, Mahindra & Mahindra, Veejay Nakra, said.

The small commercial vehicle segment grew faster while the other segments have recovered in the last 3 months, with the HCV segment coming back very securely, Nakra said. However, he said the passenger and bus segment was still waiting for buoyancy in the market. The LCV division sold around 36,000 units in FY20, which decreased to 30,000 units in FY21. But after an initial drop in FY22, there has been a recovery in the last two months. So with a 10-15% growth in sales expected in FY22, Nakra said. The industry was expected to reach the FY20 pre-Covid levels by the end of this year.

Around 50% of the LCV market in the country was in the 3-6 tonne category, and the remaining 50% was in the 6-7.5 tonne category. However, the market was shifting towards the 6-7.5 tonne category, so Mahindra Truck and Bus, a division of the Mahindra Group, decided to enter this segment with the Mahindra Furio 7 range of LCV trucks, Jalaj Gupta, business head, CVs division, Mahindra & Mahindra, said. Gupta said the company had invested `650 crore in developing the Furio range of trucks. The LCV will be manufactured at Mahindra’s facility in Chakan, Pune. The Furio 7 LCV trucks were targeting both intra-city and inter-city applications. The LCV Furio 7 platform has three variants — four tyre cargo, six tyre cargo and a six tyre tipper. They were in the price range of `14.79-16.82 lakh (ex-showroom Pune).

The majority of the segment was dominated by single vehicle owners and driver owners who were sensitive to rising fuel costs and were looking for higher payload. The Furio was designed to meet these needs, Gupta said. In addition, Mahindra was offering a more mileage or truck back guarantee and a guaranteed resale value after five years to make a dent in the highly competitive LCV market.

The cargo vehicles were being launched in 38 locations in about 13 states, which accounted for 85% of the market. In comparison, Gupta said that the tippers would be available in 26 locations across 11 states, which was 90% of the market. There were no product restrictions and would be ramped up as needed.

 

Are you looking to buy or sell a new truck or a used truck, get a truck loan and other facilities at Truck Junction with just one click and download the Truck Junction Mobile Application to know the latest news related to the truck industry.

 

Follow us for Latest Truck Industry Updates-
FaceBook  - https://bit.ly/TruckFB
Instagram - https://bit.ly/TruckInsta
Youtube    -  https://bit.ly/TruckYT

 

Similar News

Tools For Help

Cancel

Find Your Right Truck

New Trucks

Brands

Used Truck