Commercial vehicles keep pace

Commercial vehicles sales in the first quarter of this fiscal reported record 52 per cent growth in medium and heavy vehicle (M&HCV) segment and 40 per cent in the light commercial segment.

Total volume for the industry during the quarter stood at 99,313 units against 67,475 units sold in the same period last year.

"We expect the year to close with a 10 per cent overall growth for the commercial vehicle segment. The record growth reported for the first quarter was mainly owing to the low base reported in the first quarter of 2005-06, when the industry was moving from Euro II to Euro III emission norms in 11 cities, which created some confusion in the market," said R Seshasayee, managing director, Ashok Leyland.

Truck and bus sales in the domestic market grew 25.5 per cent in June 2006 at 33,954 units against 27,034 units in the corresponding month last year. In the medium and heavy commercial vehicles segment, sales were up 20.8 per cent at 19,584 units.

Segment leaders Tata Motors and Ashok Leyland led the charge, though the latter saw demand drop for passenger carriers.

Light commercial vehicle sales were up 32.7 per cent at 14,370 units against 10,827 units in June 2005. The bulk of the sales, 9,757 units in total, came from Tata Motors which is riding high following the success of its mini truck 'Tata Ace'.

During the first quarter, Tata Motors sustained its leadership position in both light and M&HCV segment with a market share of 69 and 66 per cent in the two segment respectively.

Nearest rival, Ashok Leyland reported a marketshare of 26 per cent in the M&HCV segment, while Mahindra and Mahindra reported a 21 per cent marketshare in the light commercial vehicle segment.