Following the epidemic, VECV gains market share in the M&HCV segment

Total M&HCV volumes, including goods and passenger carriers, were 3.59 lakh units in FY23, up from 3.91 lakh units in FY19 and 2.41 lakh units in FY22.

VE Commercial Vehicles, a joint venture of Eicher Motors and Swedish automaker Volvo, has gained considerable market share in the medium and heavy commercial vehicle (M&HCV) segment following the acquisition of Covid and becomes the third-largest player in the market. The market's top two players are Tata Motors and Ashok Leyland.

While the implementation of a scrappage policy for government vehicles on April 1 is projected to boost volumes, the impact of BS-IV II regulations and inflationary trends on CV volumes must be monitored, according to rating agency ICRA.

Following the impact of the pandemic, the M&HCV market reported healthy growth in the second half of 2021. Volumes in FY23 were expected to be close to the industry's peak in FY19. However, the M&HCV industry's volume was down by roughly 32,000 units in the fiscal year that ended March 31, 2023, compared to FY19.

Total M&HCV volumes, including goods and passenger carriers, were 3.59 lakh units in FY23, up from 3.91 lakh units in FY19 and 2.41 lakh units in FY22.

Total medium and heavy-duty vehicle volumes in FY23 were 3.21 lakh units, up from 2.29 lakh units in FY22 and 3.51 lakh units in FY19, while bus volumes increased to 0.38 lakh units, up from roughly 0.12 lakh units in FY22. However, it is lower than the 0.40 lakh units sold in FY19, according to figures from the Society of Indian Automobile Manufacturers (SIAM).

VE Commercial Vehicle's market share

VE Commercial Vehicles has taken advantage of the post-Covid demand. Its M&HCV volumes of 61,812 units in FY23 were significantly higher than the 45,092 units in FY19, thanks to the introduction of a new range of 'Pro' series trucks. A Pro series truck has a wide range of CNG variants and a premium line of buses. It sold 39,190 units in the fiscal year 2022.

Due to high sales, VECV's market share increased to 17% in FY23, up from 11.5 per cent in FY19 and 16 per cent in FY22. It also led the bus category with 12,161 units in FY23, followed by Tata Motors (11,462 units) and Ashok Leyland (10,767 units).

Tata is the market leader in the goods sector, with Ashok Leyland coming in second and VECV coming in third.

Ashok Leyland's market share

In FY23, Ashok Leyland's market share in the total M&HCV segment was 32%, down from 34% in FY19. However, the Hinduja flagship has seen a large increase in truck sales over the last year and is expected to surpass its pre-Covid peak in this fiscal if the current momentum continues, expanding its share even further. Its total M&HCV volumes in FY23 were roughly 18,000 units fewer than in FY19.

Tata Motors' market share

Tata Motors' market share in the total M&HCV category fell from 50% in FY19 to 47.5 per cent in FY23. It sold 170,460 units in FY23, compared to 195,712 in FY19 and 128,333 in FY22.

Industry officials and analysts anticipate that, due to favourable variables, M&HCV volumes will reach or exceed FY19 levels during this fiscal year.