The CV industry had a strong showing in May 2022. The industry grew 253% vs. the same month last year (do note that May 2021 was impacted by Wave 2 of Covid). The performance is heartening and has helped the industry get off the blocks as quick as Usain Bolt.
Segment wise summary
After a really long Covid induced break, it was the time for the bus segment to shine again. The industry grew to pre-Covid volumes of 5,860 numbers driven by very strong demand from Schools. Feedback from the market indicates that this momentum should sustain and help the industry get back to strong and respectable volumes for the year. All other segments including the SCV, I&LCV & M&HCV segments also performed very well.
Manufacturer wise summary
All manufacturers showcased a strong performance in May. Tata Motors continued to lead the industry crossing 31,000 units followed by Mahindra at 21,000 units. Ashok Leyland sold over 12,000 units followed by VECV at 5,000 units and Maruti at 3,526 units. Year to date volumes also impressed showing a growth of over 135% vs. Last Year.
SCV Sales
The SCV segment had a very strong month in May crossing 44,000 units. Mahindra crossed 20,000 units sold followed by Tata Motors at 14,000 units. Ashok Leyland and Maruti also had a strong month in May.
I&LCV Sales
The I&LCV segment also had a strong month. Tata Motors sold over 4,400 trucks followed by VECV at 2,386 trucks. Mahindra also had an impressive showing last month at 632 trucks.
M&HCV Sales
All manufacturers had a strong month in May. Tata Motors, the market leader grew by 226% followed by Ashok Leyland at 386% and VECV at 348%. A broad recovery in the CV segment is expected to benefit the M&HCV segment over the coming months.
Bus sales
Tata Motors and VECV had a very strong performance in buses. The industry appears to have rebounded strongly lead by school buses. Supply constraints due to challenges in body building capacity have posed challenges to manufacturers which should ease in the coming months.
Summary
The CV industry is off to a great start despite challenges of elevated fuel prices and rising inflation. As long as the fundamentals of the economy hold strong, we expect the industry to have a strong year in FY23.