Tata Motors reclaims top spot in light commercial vehicles after two years

Tata Motors reclaims top spot in light commercial vehicles after two years

New Delhi, Apr 9: The previous financial year (FY18) belonged to Tata Motors in more ways than one. The country’s biggest commercial vehicle maker reclaimed leadership position in the light commercial vehicle (LCV) space from rival M&M after a gap of two years. Besides, the Mumbai-headquartered company also overtook Japanese car maker Honda to occupy the fourth spot in the domestic passenger vehicle market.
Making the most of a revival in demand for LCVs, Tata Motors closed the year with a 33 per cent jump in domestic sales. Against a volume of 156,719 units in FY17, sales of these vehicles jumped to a total of 208,443 units, the highest in recent few years. This growth of 33 per cent is even better than the 31 per cent expansion clocked by the company’s passenger vehicle (cars and utility vehicles) segment. Along with medium and heavy commercial vehicles, the company’s CV segment posted a 23 per cent growth during the year.
M&M did not do badly either as far as LCV is concerned, hitting a growth rate of 20 per cent for the entire fiscal to sell 206,074 units. But it lost the lead of over 12,000 units it had gained over rival Tata Motors in FY16 riding on demand for its pick-ups. The lead in FY17 was even bigger at 16,000 units. But the situation stands reversed in FY18 with Tata enjoying a small lead of over 2,300 units, helped by a 33 per cent growth.
Tata Motors introduced the XL series of Ace range of LCV and the Xenon Yodha in FY18, which has helped it gain market share. “The increased demand for vehicles across segments and production ramp-up of the new range of BSIV vehicles has given a strong boost to the overall sales growth. We have strengthened our network and dealerships, across the country, to be able to service our customers better,” said a company spokesperson. LCV demand, the company said, is being driven by third party logistics, e-commerce, FMCG, agriculture based sectors, government/municipal applications and construction sectors.
LCV consists of goods carriers and passenger carriers and the former forms over 90 per cent of the segment. M&M remains a leader in the goods carrier segment though it is a much smaller player in passenger carriers.