The Hindu Business Line : Heavy duty trucks drive commercial vehicle segment

WITH the brisk pace of development seen in the infrastructure sector, it is the medium and heavy goods carriers (trucks) sector that is driving the high growth seen in the commercial vehicles segment.

According to industry data, while commercial vehicles grew by 36 per cent in the April-January period this fiscal as compared to the same period in the previous year, the medium and heavy goods carriers (M&HGC) segment jumped by 43.79 per cent in the same period.

With total sales of M&HGC at 105,755 units, the segment accounted for about 52 per cent of total commercial vehicle sales, up from the 49 per cent in the year-ago period.

Interestingly, even among M&HGC it is the higher tonnage trucks that are seeing steady growth. Sales of trucks with a mass exceeding 25 tonnes grew by 43 per cent in the period, industry data showed. According to industry watchers, with the highway development project being put in place, demand for heavy tonnage trucks is set to go up further, which is why commercial vehicle makers such as Tata Motors and Eicher Motors are planning more roll-outs to address the segment.

In contrast, within the light commercial vehicles (LCV) segment, the highest growth is being seen in lighter tonnage trucks.

While between April 2003 and January 2004, the LCV segment grew by 29.40 per cent, trucks with a mass of less than 3.5 tonne grew a massive 81.8 per cent to 32,111 units.

Players such as Mahindra and Mahindra, Tata Motors and Bajaj Tempo saw good growth in the category during the period.

Meanwhile, sales of light trucks with a tonnage of between 5 and 7.5 tonne increased by only about 12.7 per cent to 30,123 units in the period.

Industry watchers, however, point out that with the development of rural roads, this segment holds high potential for growth in the long run.