Commercial vehicles have staged a smart recovery in July-September with sales accelerating for the first time since October-December 2008. But September 2009 snapped the rising sales seen in July and August. While light commercial vehicles (LCVs) sales have continued to grow stronger,lacklustre Medium and High CV (MHCV) sales pulled down the overall performance in September.
Segment leader Tata Motors sold 13,020 units and managed to increase MHCV sales by 2.35 per cent this September over the same month last year,its slowest growth during the quarter. LCV sales continued to grow having emerged from the red zone in February 2009. Their sales accelerated 45 per cent this September for the fourth consecutive month. The company sold 18,454 units in September this year compared with 15,927 units in September last.
It is Tata Motors LCV sales that has boosted numbers since the beginning of this financial year. LCV sales growth,however,slowed down from 28.24 per cent in Q1 to 18.53 per cent in Q2. Alternatively,MHCV sales that declined by 25.70 per cent in Q1 have grown by 11.23 per cent in Q2. The contrary growth trends of LCV and MHCV sales have not affected overall company growth which has jumped to 20.72 per cent in Q2 from 6.37 per cent in Q1. The company sold 31,474 units in the domestic market in September 2009,up 9.86 per cent over the same month last year. Tata Motors has recorded a 11.07 per cent growth increase in sales in the first half of the current year.
Ashok Leyland,however,is still unable to stop its MHCV sales from declining and since its base in the LCV segment is meagre to make any impact on the overall bottom line,it continues to struggle. The percentage drop in MHCV sales got worse for the first time since April 2009 this September. Sales declined 12.17 per cent to 4,763 units. On the other hand,a comparative Q2 recovery has helped Ashok Leyland better its first half numbers. A sales decline of 60.92 per cent in Q1 vis-à-vis a 17.59 per cent decline in Q2 leaves a 40.55 per cent overall decline for the first half of the FY.