Commercial Vehicle segment has been in red for a long time now and the segment is reeling under pressure due to multiple factors in the past 2 years - whether is BS6 transition, Covid 19 pandemic, or slowing infrastructure growth. Even in Feb'21; the segment registrations fell -29.5% YoY. The uplift of the oil prices, as well as the increase in the input costs of the commodities like copper and steel, had added to the woes of the sector.
OEM wise CV Sales / Registrations for February 2021 –
Tata Motors CV sales fell by -32.1% YoY and it lost Market Share of -1.6%. It anyhow was India's No.1 CV maker and is positive about the coming year. Girish Wagh, President of Tata Motors Commercial recently stated that “Looking at the balance between the headwinds and tailwinds, it does appear that we will end up having a growth in the industry next year, around mid to high 30% because this is on a low base. We had more than 30% decline last year and 25% this year. We are sitting on a low base this year and on that, having this kind of an increase still means we are a distance away from the earlier peak" (source).
Mahindra seems to have been heavily impacted by semi-conductors shortage and the supply chain has been disrupted to a larger extent. The OEM lost almost 44% volumes on a YoY basis and the Market Share drop was the highest in the industry too. Veejay Nakra, CEO had recently commented "Our small commercial vehicles – Bolero pick-up, Supro and Jeeto have a strong pipeline of bookings. We have a fairly robust order pipeline for the next 4-6 months for these products. Supply of semiconductors is a global supply chain issue at the moment and it may remain till end of June. We are specifically impacted by one particular supplier”.
It is the Small Commercial Vehicles (SCVs) that have helped CV OEMs to fare better. Due to the rise of e-commerce and hub & spoke model – the SCV segment has seen a steady rise. The trend is clearly visible in Maruti's rise. The Super Carry maker posted an increase of 37.2% registrations YoY and was able to enhance its Market Share by 2.7%. Maruti Suzuki was one of the sole CV OEMs to register positive YoY growth.
Ashok Leyland degrew -26.1% YoY and its market share increased by 0.7%.
NOTE: The above numbers do not have figures from AP, MP, LD & TS as all these States/UT’s are not yet on Vahan 4.