Tata Motors’ comeback story in the commercial vehicles (CV) segment is getting stronger with the company showing an increase in market share across categories in the June quarter, aided by strong double-digit sales growth.
“We have seen market share increase across segments — the medium and heavy commercial vehicle segment (M&HCV), intermediate and light commercial vehicle (ILCV) segment and in the small trucks segment. We are quite happy with the way the numbers are progressing and we hope to maintain the momentum,” PB Balaji, Group CFO, Tata Motors, told BusinessLine during a conference call. The company’s market share in the M&HCV has increased by 480 basis points to 60 per cent, aided by 111 per cent growth in sales at about 38,000 units during the first quarter of this fiscal. Its market share in the ILCV segment grew by 340 basis points to 46 per cent. Sales in this segment grew by 73 per cent to 11,700 units.
The company’s market share in the small CV and pick-up categories increased by 480 basis points to 41 per cent, supported by a 57 per cent growth in sales at about 46,900 units.
Impact on demand
Also, the company has registered strong growth in sales across regions — South: 57 per cent at 21,300 units; North: 69 per cent at 37,700 units; West: 63 per cent at 26,700 units and East: 85 per cent at 26,100 units.
Balaji indicated that the proposed truck axle norms may impact demand in the short term due to lack of clarity on various aspects.
“I am expecting a temporary impact on demand during this quarter. But it should reverse out going forward as intrinsic demand for CVs is extremely high in the country. There is strong demand for tippers, trucks and last-mile vehicles because infrastructure spend is continuing and GDP growth is doing well. We are very bullish on demand over the medium- to long-term,” he added.
Even as the company awaits clarity on the new axle norms, it has started work on getting its trucks ready for them. “Three things have to be done — re-engineering, re-validation and re-certification, and we are on it,” he said.