Top News

|  DP World reports 10.7% gross volume growth in Q2 2017  |    |  Major Ports post combined net surplus of INR 2820 cr in FY 2017  |    |  Odisha sets a target to reach INR 1 lakh cr exports by 2025  |    |  Shapoorji Pallonji Group to spend INR 2,000 cr in Odisha Gopalpur Port  |    |  Air India SATS Airport Services launches mobile app for tracking cargo  |    |  IndiGo & Jet introduce additional flights to Doha, Mumbai from Kozhikode  |    |  Port of Rotterdam registers impressive container throughput rise in H1  |    |  New waterways to connect India with Bangladesh  |    |  Yang Ming to start New Korea-Taiwan-Hong Kong service  |    |  DFC to be commissioned in 2 years  |    |  Domestic air traffic up 20% in June  |    |  No new port in 100 km vicinity of major ports  |    |  IRCTC to install 1,100 water vending machines at railway stations  |    |  Port of Antwerp first half volume increases by 1.9% to 5,143,305 TEU  |    |  Asia-Europe rate falls 2.1% to USD 919 TEU, declines 3.1% to USWC  |    |  Operations at international cargo terminal likely to begin soon  |    |  Haicang Port sees 1H cargo rise 20.7% to 3.12 million TEU  |    |  Bahri gets delivery of 39th VLCC, strengthens its leading position  |    |  Shreyas Shipping & Logistics signs MoA to acquire one Multipurpose vessel  |    |  Businessman to sell 12% stake in CIAL  |   
You are here: Home » National News » Roadways» Increased truck sales, new models help Leyland claw back market share

Increased truck sales, new models help Leyland claw back market share

07 March 2017 | Chennai


Ashok Leyland gained market share in the medium and heavy (M&HCV) segment during the December quarter.

The other two, Tata Motors and Eicher, saw a dip. According to Kotak Institutional Equities research, based on data from the Society of Indian Automobile Manufacturers, Leyland's share rose to 34%, from 30.2% in the same quarter a year before.

Tata Motors' dropped to 51.6%, from 54% a year before. Eicher's dropped to 10.2%, from 11.6%. The rise was driven by improvement in the truck market share by 4.8 percentage points.

Truck volumes saw an increase across zones and product segments. Leyland's introduction of new vehicles in the intermediate CV space, Guru and Sunshine, helped in the growth. And, expansion of its network, said Gopal Mahadevan, chief financial officer at Leyland.

Its capacity utilisation was also best in the industry during 2016; in M&HCV, it was 75%, against the industry average of 54%. Followed by Eicher-Volvo's 60%, Tata Motors at 50%, Swaraj Mazda at 36% and Mahindra & Mahindra-Navistar's 15%.

According to Kotak Institutional Equities' estimate, In 2017, while the industry is expected to see a one percentage point increase, Leyland's capacity utilization is expected to increase to 77% and Eicher-Volvo's to 66%.

Tata Motors expected to remain at 50%. They think Leyland would deliver 9% compound annual growth (CAGR) over 2017-19. By 2019, the volume is expected to touch 152,271 units, from 127,321 in 2016. Of this, trucks for the domestic market are expected to reach 95,257 units by 2019, as compared to 79,223 in 2016.

During the same period, Tata Motors standalone volumes would rise at a 10% CAGR; M&HCV volumes by 5%, the domestic volume here going to 159,474 units as compared to 157,226 in 2016.

"The CV industry has gone through tremendous leaps and bounds in the past few years and manufacturers have upped the ante in their bid to sustain themselves in this intensely competitive market,” said Ravi Pisharody, Executive Director, Commercial Vehicles, Tata Motors.

He added "We believe that we have a very important role to play in containing the industry and not chase market share, as we continue to launch new products and services, adding real value to our customers businesses, rather than offering discounts, thereby dragging down the industry and further worsening the situation.”

Transreproter Logo