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Tata Motors is regaining ground in the light commercial vehicle space thanks to growth momentum in SCVs. Comprising mini and pickup trucks in the sub-3.5 tonne category, these small commercial vehicles account for about 90 per cent of the goods market and are the best bet for last mile connectivity.
LCV sales have been robust lately and grown 12 per cent during April-October.This follows two years of subdued growth and it was only during the fourth quarter of 2015-16 that SCVs began their comeback trail. “Better availability of financing, emergence and growth of segments such as e-retail and new products from various manufacturers last fiscal have expanded the market,” said a Tata Motors spokesperson.
Over the last two to three years, pickups (2-3.5 tonne gross vehicle weight) have been selling more than sub-one tonne mini-trucks. In the process, Mahindra & Mahindra has raced ahead with its vice-like grip in pickups. It is during this fiscal that Tata Motors has made up lost ground and dislodged Ashok Leyland as the challenger to M&M.
In mini-trucks, where the Ace rules the roost, Tata Motors has posted six per cent growth at 47,802 units during April-October and increased its market share to 73 per cent from 71 per cent a year ago. M&M’s counter here is the Jeeto which still trails the Ace. In pickups, Tata grew 65 per cent to 21,674 units and increased its share to 18 (13) per cent with M&M ahead at 66 per cent while Leyland is at 15 per cent.
Ravi Pisharody, Executive Director – Commercial vehicles, Tata Motors had recently told Business Line that Ace Mega (pick-up truck) is doing well with more variants to follow. However, customers still prefer pickups to mini trucks.
“The shift from sub one-tonne has been going on for the last two years thanks to better load carrying capabilities by 2-3 tonne vehicles at the same fuel efficiency,” says Subrata Ray, Group Vice President – Corporate Rating, Icra. However, Tata Motors believes the sub-one tonne segment will stay relevant for first-time users who need comfortable financing options.
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