Indian CV market is expected to see revival in sales this year
Indian Commercial Vehicle market has undergone severe crisis in sales over the past few years. In 2011, sales of commercial vehicles (CVs) peaked. And then it fell, to almost half in 2013. Commercial vehicle sales are seen as an indicator of the health of an economy. Higher the sales, better the state of the economy, as trade, construction, transport would all be on the upswing.
From 2015 over, things have been looking up. Last year, the CV industry grew at 8%, but the market was in a realignment.
For the first time, Tata Motors, which owned half the market, saw marketshare dip to 44% as others nibble away at it. Ashok Leyland grew from 13.7% to 18%, while Volvo Eicher Commercial Vehicles (VECV) rose from 5.8% to 6.6%. Mahindra & Mahindra too grew by a little less than 1%.
The fastest-growing segment will be the medium and heavy vehicles, where VECV has a 12%, Mahindra which has more than 25% marketshare, but only 3% in heavy vehicles but soon the company is expecting increase with its Blazo series of trucks. Tata Motors is overhauling its products — all heavy vehicles will be under the Signa brand, and the 25-tonne trucks will be replaced by new ones. The mainstream products had to change & the entire portfolio is under the new design architecture, with new technology in pipeline.