The commercial vehicle sector showed strong growth closing FY2023, achieving a 34% increase with nearly a million units. However, Q1 FY2024 witnessed a 3% decline in combined M&HCV and LCV sales, totaling 217,046 units, compared to 224,488 units in Q1 FY2022. While there’s strong demand for passenger carriers (buses) in both sub-segments, decreased demand for goods-transporting CVs has affected the overall segment. Combined LCV & M&HCV goods carrier sales reached 191,669 units, down 6.5% from the previous year’s 205,022 units.
Tata Motors remains the market leader with 79,263 units sold, but their Q1 FY2024 figures dropped by 15.57% from Q1 FY2023. Mahindra & Mahindra saw a 3.84% YoY increase with 61,252 units sold, and Ashok Leyland reported a 5% rise with 39,107 units. VE Commercial Vehicles performed well, delivering 18,245 units, an 18.60% improvement from the previous year’s 15,383 units.
The three-wheeler segment stands out with a 144,475 unit sales figure, marking an 89% YoY growth. Passenger-transporting three-wheelers experienced a robust 125% YoY increase, while goods carriers grew by only 2% to 21,695 units.
Electric mobility is driving growth in this segment, attracting both single owners and fleet operators due to its cost efficiency. In Q1 FY2024, EV OEMs dispatched 8,653 units, reflecting a solid 102% YoY growth from Q1 FY2023’s 4,280 units.
Bajaj Auto leads the three-wheeler market with 98,482 units sold, achieving a remarkable 157% YoY growth. Piaggio Vehicles, the second-ranked OEM, lags behind with 19,900 units. Mahindra & Mahindra follows with 17,780 units, while TVS Motor Co, Atul Auto, and Continental Engines trail behind. The last two OEMs experienced declining sales.
The SIAM president noted that Q1 FY2024 saw the segment’s third-highest sales, driven by strong demand for short-distance commuting.