Buoyed by recovery in the medium and heavy segments and an uptick in the economy, Tata Motors expects about 10-15 per cent growth in its commercial vehicles sales during next fiscal.
With the Budget spelling out measures to boost infrastructure development, the company hopes that even the light commercial vehicles would return to growth path after a prolonged sales slump.
“The medium and heavy commercial vehicles segment (M&HCV) has been growing for sometime now. It’s the light commercial vehicles (LCV) segment that has been struggling but that also seems to have bottomed out,” Tata Motors Commercial Vehicles Executive Director Ravi Pisharody told PTI.
He further said: “The rate of decline in the LCV sales have decelerated. So, overall we expect our CV sales in the next fiscal to grow around 10-15 per cent.”
Explaining the key growth drivers, Pisharody said: “The vehicle replacement cycle has already kicked in and that’ll drive up sales. Moreover, the Budget has focused a lot on infrastructure investments, which had been weak for the past three years. It’ll also help in increasing demand.”
As per SIAM figures, total commercial vehicles sales in India during the April-February period this fiscal were down 3.39 per cent at 5,49,486 units as against 5,68,750 units in the year-ago period.
M&HCV sales were, however, up 15.09 per cent at 2,03,926 units as compared to 1,77,185 units in the same period last fiscal. LCV sales were down 11.75 per cent at 3,45,560 units as against 3,91,565 units in the year-ago period.
Tata Motors’ CV sales in the domestic market during the April-February period this fiscal was at 2,60,597 units, down 9.50 per cent from the year-ago period.
Pisharody said the company’s Prima series of trucks have gained a lot of traction and the brand has been doing very well in the market.
With events like the T1 Prima Truck Racing Championship, the race for second season was held this weekend, the company is looking to enhance the strength further.
“This event is a new vista for showcasing what our Prima range is really built on. We have targetted even the transporters with this and the response has been good,” he said.