The commercial vehicle segment in India is sidelined by passenger car segment that connects with the desires of buyers. However, the commercial vehicle segment is one of the important spheres that contribute towards the economic health of the country. The segment experienced highs in the past quarter, even when the passenger car sales hit record-breaking low in the past two years.
This heavyweight segment of Indian automotive industry is dominated by Tata Motors Limited, Eicher Group, Mahindra & Mahindra Limited and Asia Motor Works (AMW). These players together represent 83 percent of the commercial vehicle market. As per industry reports, the segment registered a double digit growth of 28 percent in July. Carrying the bearish run, the commercial vehicle segment in India posted sales growth of 28% during October over sales figures of the month of September.
This positive trend is attributed to the planned execution of scheduled infra-related works, ventured by government and private parties. The imposition of anti-overloading law by some provinces across India and the product introduction are among other reasons of surging sales in the segment. In the run, commercial vehicles are still in high demand despite inflationary pressures, high fuel prices and peaking interest rates.
Tata Motors Limited, India's largest manufacturer of light and heavy trucks and buses, was among highest gainers, registering sales growth of 5 percent during October 2011, in comparison to the monthly sales last year. On the other hand, Volvo Trucks India, Mahindra & Mahindra and other notable manufacturers cater to wider target group, mainly agricultural and service sector.
Business tie-up between Volvo Group and Eicher Motors churned out revenues from their heavy automotive offerings. Domestic sales of the venture in October this year is 4,135 units, which is 34.69 percent more against 3,070 units sold in the same month last year.
The new entrant Mahindra Navistar Automotive Limited (MNAL) received an overwhelming response in the market, selling more units than sales projections. Besides heavy trucks, tippers witnessed significant demand. Moreover, buyers are placing orders for school buses and 40 tonne tractor trailer.
The segment of commercial vehicles is expected to take centre stage during the critical state of automotive industry. Over the years, there has been considerable growth owing to the undertaking of new infrastructure projects. As per the Economic Survey of Indian government, this segment is cruising at an annual growth of about 10 percent. To meet surging demand, nine manufacturing facilities for commercial vehicles in India are expected to raise production output.
Reports of Commercial Vehicles in India have confirmed a growth of about 20 percent within last two years. Going by the trend, there is a projection of 22 percent growth in the segment in forthcoming years.
