M&HCV gross sales dip in February; This autumn to witness excessive single digit drop, Auto Information, DFL
One factor that was most obtrusive between the 4 gamers, which represent greater than 85 per cent of CV market share in India, was all of them reported unfavorable gross sales in medium & heavy industrial car (M&HCV) section final month. Analysts really feel that section’s downtrend might act as a deterrent for the fourth quarter (This autumn) of the present fiscal 12 months.
Tata Motors (M&HCV) volumes declined sharply by 18 per cent year-on 12 months (Y-o-Y) in February, whereas Ashok Leyland gross sales in the identical section contracted by four per cent. Eicher Motors and M&M M&HCV gross sales additionally fell by 7.eight per cent and 17 per cent respectively in the identical month.
Trade consultants identified that moreover revised axel norms, components like greater rates of interest, sluggish financial actions, liquidity subject and excessive base impact additionally contributed to the declining gross sales of M&HCVs.
“Items carrying heavy industrial automobiles gross sales remained subdued over a excessive base of February 2018 (created on account of a stricter implementation of overloading ban in north India final fiscal). Furthermore, greater freight carrying capability created on account of enforcement of axle norm and better seller stock ranges result in restricted wholesale offtake in February this 12 months,” Hetal Gandhi, Director, CRISIL Analysis advised ETAuto
Launched in August 2018, the axle norm has elevated the freight carrying capability of M&HCV by 20 per cent, thereby virtually placing a halt on new truck shopping for. Going ahead, these components may solid a spell on heavy vehicles efficiency of March as effectively, and subsequently, Crisil expects that M&HCV gross sales in This autumn might decline by excessive single digit.
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Throughout the section, intermediate and lightweight industrial automobiles (I&LCV), nevertheless, managed to maintain constructive gross sales trajectory final month. Knowledge from above talked about high three CV producers (barring Eicher Motors) reveals a cumulative 3.6 per cent YoY progress in LCV gross sales in February 2019. Compact car necessities for final mile logistics and doorstep supply companies coming from e-commerce gamers boosted the gross sales of LCVs as they provide higher price economics for such lead distances.