Even though the auto industry has witnessed several positive developments in recent months, the commercial vehicle (CV) segment continues to be in the red. A total of 51,454 units were sold in December 2020, which is negative YoY growth of -13.52%. Sales during the corresponding period in 2019 stood at 59,497 units.
Even though CV segment has negative growth, the situation is consistently improving. YoY de-growth was much higher at -31.22% in November 2020. This points to positive MoM growth, which has been the case in recent months. In December, MoM growth was 2.68%, as compared to 50,113 units sold in November 2020. MoM growth in November was even better at 12.66%, which was probably due to festive sales.
Tata Motors continues to be the largest CV manufacturer in the country. The company sold a total of 19,172 units in December 2020, which is YoY de-growth of -23.96%. Sales in December 2019 stood at 25,212 units. Tata Motor’s market share in December 2020 was 37.26%. In terms of MoM growth, sales are up by 9.03%. Sales in November 2020 were 17,584 units.
At number two is Mahindra with 15,128 units sold in December 2020. YoY growth is down -2.27%, as compared to 15,480 units sold in December 2019. The company’s market share in December 2020 was 29.40%. Mahindra’s MoM growth is also down by -10.36%, as compared to 16,876 units sold in November 2020.
Ashok Leyland is placed at third place with 6,583 units sold in December 2020. YoY de-growth is -18.43%, as compared to 8,070 units sold in the corresponding period in 2019. Market share stands at 12.79%. Ashok Leyland has registered positive MoM growth of 8.63%, as compared to 6,060 units sold in November 2020.
Next in the list is VECV with 2,637 units sold in December 2020. YoY de-growth is -2.26%, as compared to 2,698 units sold in December 2019. The company’s market share is 5.12%. MoM growth is up by 2.29%, as compared to 2,578 units sold in November 2020.
At number five is Maruti Suzuki with 2,430 units sold in December 2020. YoY sales are up 8.77%, as compared to 2,234 units sold in December 2019. Market share stands at 4.72%. Maruti’s MoM numbers are also up with 8.92% growth, as compared to 2,231 units sold in November 2020.
Other CV manufacturers in the list include Daimler (922 units), Isuzu (344), and Force Motors (329). All of these have negative YoY growth in December 2020. In terms of MoM sales, only Daimler has positive growth.
Even though all CV sub-segments are in the red, LCVs have performed better as compared to M&HCVs. One key reason is the increased movement of goods between cities. M&HCV sales were impacted by factors such as higher freight rates, increased fuel and vehicle cost and axle load norms. CV segment could get a chance to bounce back this year, as the government has approved infrastructure projects worth Rs 12k crore. The benefits of this move will accrue to CV industry from April onwards.