There are worrying signs for the commercial vehicle (CV) sector as it grew a mere 2.7 per cent in April-November 2012. Figures released by the Society for Indian Automobile Manufacturers (SIAM) for the period show that medium and heavy commercial vehicles saw a de-growth of 16.34 per cent.
Amid the despair in the M&HCV segment, the light commercial vehicle (LCV) segment continues to grow. “The LCV and small CV segment vehicles are required for ‘first mile’ and ‘last mile’ connectivity, and will grow despite the slowdown,” R. C. Maheshwari, President, Commercial Vehicles Business, Bajaj Auto, told The Hindu.
He said that while the four-wheeler LCV segment was growing well, three-wheeler LCV sales were stable. In November 2012, four-wheeler LCV sales grew 9 per cent while three-wheeler LCV sales grew more than 20 per cent with the passenger segment growing 25 per cent and goods carrier segment growing 3 per cent, according to SIAM.
SIAM figures show M&HCV sales declined by 33 per cent in November 2012. Surjit Arora, automobile analyst, Prabhudas Lilladher, a broking firm, said, “the M&HCV segment is impacted because there is less movement of heavy cargo with sectors such as mining being slack. Small fleet operators accounting for 70 per cent of the industry have postponed new purchases despite discounts being offered.”