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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
 

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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.”

   
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