Present in pain, future iffy for heavy truck makers in India

Muted demand for heavy commercial vehicles is forcing manufacturers to rethink and rejig strategies.
By : HT Auto Desk
| Updated on: 03 Sep 2020, 08:55 AM
Present parked, future far: File photo used for representational purpose. (REUTERS)
Present parked, future far: File photo used for representational purpose. (REUTERS)
Present parked, future far: File photo used for representational purpose. (REUTERS)
Present parked, future far: File photo used for representational purpose.

August was a tumultous month in a series of challenging months in 2020 for makers of heavy trucks and buses in India. With the major players in the segment struggling to gain any sort of momentum, the path ahead is likely to remain a difficult one to trudge on.

Wholesale dispatches of trucks and buses in the month of August saw a decline with Ashok Leyland and Volvo Eicher Commercial Vehicles Ltd (VECV) registering a 30% decline in volumes. And while small and light commercial vehicles' sale had some signs of life, it was hardly anywhere close to what is required to galvanize the overall commercial vehicle segment.

Similar Cars

Find More Cars
Volvo Xc40 (HT Auto photo)
Volvo Xc40
1969 cc | Petrol | Automatic (Torque Converter) | 14.49 kmpl
₹41.25 Lakhs**Ex-showroom price
Volvo S60 (HT Auto photo)
Volvo S60
1969 cc | Petrol | Automatic (Torque Converter) | 14.08 kmpl
₹45.9 Lakhs**Ex-showroom price
Volvo Xc40 Recharge (HT Auto photo)
UPCOMING
Volvo Xc40 Recharge
Electric | Automatic
₹50 - 55 Lakhs* *Expected Price
Volvo S90 (HT Auto photo)
Volvo S90
1969 cc | Diesel | Automatic (Torque Converter) | 17.86 kmpl
₹61.9 Lakhs**Ex-showroom price
Volvo Xc60 (HT Auto photo)
Volvo Xc60
1969 cc | Diesel | Automatic (Torque Converter) | 16.13 kmpl
₹61.9 Lakhs**Ex-showroom price
Volvo V90-cross-country (HT Auto photo)
Volvo V90-cross-country
1969 cc | Diesel | Automatic
₹65.31 - 66.81 Lakhs**Ex-showroom price

Just how grim have things been? VECV's performance in the domestic market went down from selling 3,144 units in August of 2019 to 2,190 last month. For Ashok Leyland, CV sales were down from 8,295 units to 5,824 units.

New challenges often require new strategies and that appears to be the mantra over at Ashok Leyland. The company is looking at making some headway in the electric mobility arena and is doggedly eyeing a bigger chunk in the domestic defense sector. It is also looking at a bolstering its LCV range. "Now we are looking forward to launching later this month our new LCV range. And this is all part of the process of de-risking the company from its core medium and heavy (segment)," Chairman Dheeraj G Hinduja told news agency PTI, adding that 'electric play for Ashok Leyland will be quite substantial.' (Full report here)

Will it be enough?

Most analysts are near certain that the coming months are unlikely to offer much in the way of a lifeline. The troubled state of the economy will have a marked bearing on the heavy vehicles' sector and demand may remain rather muted for trucks and buses, even if LCVs do seem some upward movement.

(With inputs from LiveMint)

First Published Date: 03 Sep 2020, 08:55 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city