VE Commercial Vehicles, a joint venture of Eicher Motors and Swedish auto group Volvo, has achieved significant market share post-Covid in the medium and heavy commercial vehicle (M&HCV) segment, thereby becoming a third-big player after Tata Motors and Ashok Leyland.

After the pandemic’s impact, the M&HCV market reported positive growth in the second half of 2021. There was a hope that FY23 volumes will reach close to the industry’s peak of FY19. But, the M&HCV industry’s volume were lower by about 32,000 units in the fiscal that ended March 31, 2023 as against FY19.

In FY23, the total M&HCV volumes, including goods and passenger carriers, stood at 3.59 lakh units compared with 3.91 lakh units in FY19 and 2.41 lakh units in FY22.

In FY23, total medium and heavy-duty truck volumes stood at 3.21 lakh units compared with 2.29 lakh units in FY22 and 3.51 lakh units in FY19, while the bus volumes grew to 0.38 lakh units against about 0.12 lakh units in FY22. But it is lower compared to 0.40 lakh units in FY19, according to the data provided by the Society of Indian Automobile Manufacturers (SIAM).

Market share

VE Commercial Vehicles has been a major beneficiary of the demand recovery post-Covid period. Its M&HCV volumes of 61,812 units in FY23 were much higher than FY19 volumes of 45,092 units, helped by the launch of a new range of its ‘Pro’ series trucks, a wide range of CNG variants, and premium range of school and other buses. In FY22, it sold 39,190 units.

As a result of strong sales, VECV’s market share zoomed 17 per cent in FY23, up from 11.5 per cent in FY19 and 16 per cent in FY22. It also secured the top in the bus category in FY23 with 12,161 units, followed by Tata Motors (11,462 units) and Ashok Leyland (10,767 units).

In the goods category, Tata is the leader and Ashok Leyland is the second big player and VECV was in third position.

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Ashok Leyland’s market share stood at 32 per cent in the overall M&HCV segment in FY23 against 34 per cent in FY19. However, in the past year, the Hinduja flagship achieved a significant jump in truck sales and is likely to reach its pre-Covid peak in this fiscal if the current momentum continued thereby boosting its share further. Its total M&HCV volumes in FY23 were lower by about 18,000 units compared to FY19.

Leader Tata Motors’ market share in the overall M&HCV segment dropped to 47.5 per cent in FY23 from 50 per cent in FY19. It sold 170,460 units in FY23 as against 195,712 units in FY19 and 128,333 units in FY22.

Emission norms

“With the new BSVI phase II starting from April 2023, we have used the opportunity to significantly enhance key attributes of our entire portfolio while complying with the emission norms. Our commercial vehicles will now deliver even better performance enabled by smarter technologies and enhanced features,” said Girish Wagh, Executive Director, Tata Motors Ltd.

Industry representatives and analysts hope that due to favourable factors, the M&HCV volumes may reach or surpass FY19 during this fiscal.

While the introduction of a scrappage policy for Government vehicles, effective April 1, is expected to provide a fillip to volumes, the impact of the introduction of BS-IV II norms and inflationary trends on CV volumes is to be observed, said rating agency ICRA.