Tata Motors regains top slot in LCV segment in Dec-Jan

Sells more units for in Dec 2015 and Jan 2016; M&M still leads in cumulative numbers

Tata Motors, after losing its number one position in the light commercial vehicle (LCV) segment to Mahindra & Mahindra (M&M) in the first eight months (April-November) of this financial year, has reclaimed the lead. The company sold more LCVs than M&M, the nearest competitor, consecutively in December and January. Cumulatively (April to January), however, M&M is first, show data from the Society of Indian Automobile Manufacturers. The body classifies passenger and goods carriers of up to 7.5 tonnes as LCVs.  

Tata Motors has been a leader in this segment for years. Led by the Tata Ace (pictured), termed the chhota hathi (baby elephant).

Launched in 2005, about 1.5 million units of the Ace have been sold till date. “You have to look at longer periods of growth or decline in this segment. Somebody was stronger in pick-up vehicles. Our Ace had seen a drop and that was hurting us; it has started recovering. The Ace Mega is counted as a pick-up and doing well. I am confident this will only get better,” Ravindra Pisharody, executive director (commercial vehicles), told this newspaper.  

Tata had sold almost 14,000 more LCVs than M&M in 2014-15 and about 50,000 more units in 2013-14.  A decline in demand due to a slowing economy and defaults in financed vehicles had impacted LCV demand; sales declined 11.6 per cent in FY15. In the first 10 months of this year, the decline has been a little over two per cent. However, growth seems to be coming back; January saw a rise of 6.5 per cent.

M&M, which launched the Jeeto, a mini truck, in June 2015 and the Supro Maxitruck passenger LCV in October, succeeded in expanding share even as the market was declining, with Tata’s product line not ready. However, Tata launched the Ace Mega, a small pick-up, in August last year and has seen the Ace portfolio grow since then.

Pravin Shah, president and chief executive (automotive) at M&M, said the company was cumulatively much ahead of Tata Motors.

He recently said the company would continue to launch new products and upgrade the existing ones as customer needs evolved.

The LCV market is significant, with a size of 382,206 units in FY15. These small trucks are used for intra-city transport of goods.

By comparison, medium and heavy CVs find use in inter-city movement of goods. The fight for a greater share in the LCV space, starting to grow after a long decline, is set to pick up.