SCVs helps M&M become largest CV maker of India

NEW DELHI: The month of September 2020 has been one of renewed hope and aspiration for the automotive industry. But its impact has been different for different players. For some, it has brought opportunity to strengthen market leadership while for someone else it has been the time to identify new markets and enter new regions.

For the players in the commercial vehicle industry it has been a year of dethroning and crowning. Tata Motors, the unrivalled champion in the CV market has been overthrown by Mahindra & Mahindra, according to industry data.

We have been witnessing good traction in small and light commercial vehicles driven by the need of e-commerce for the movement of essential commodities and the demand in rural markets.Veejay Nakra, CEO – Automotive Division, M&M Ltd

Supported by its small commercial vehicles (SCVs) Mahindra & Mahindra sold 62896 units in the firs half of FY21 leading marginally by 1,528 units against the 61368 units of Tata Motors. Industry experts believe that the creation of separate divisions for SCVs helped the company to have an edge over the competition. The main stay of Tata Motors is medium and heavy commercial vehicles which are subject to the vagaries of various economic and policy factors.Problems like disrupted supply chain and stressful economic conditions have been common to all. It was its strong foothold in the SCVs market of e-commerce players that helped Mahindra & Mahindra climb up the ladder.

Veejay Nakra, CEO – Automotive Division, M&M Ltd, "We have been witnessing good traction in small and light commercial vehicles driven by the need of e-commerce for the movement of essential commodities and the demand in rural markets. Clearly products like Supro, Jeeto, BMT, City Pickup, Big Bolero pickup have seen revival in demand, driven by movement of goods to the last mile."

"Bolero Pickup, which has been a market leader, has further strengthened its position with almost 66% share in H1FY21. In fact our BSVI range in Supro is getting good traction owing to improved fuel efficiency, better engine performance and stronger value proposition. We have gained significant share of the SCV category and enquiry and bookings are coming close to pre-COVID levels." he added

Two years ago, the company created a separate vertical of small commercial vehicles business under which the brand sells three-wheelers, passenger carriers, and load carriers below 2.5 ton and electric three-wheelers. The company has opened 225 outlets in the last two years.

The rise of e-commerce and the hub-n-spoke model post-GST is fuelling growth in the SCV segment, making it one of the fastest emerging in the domestic market. Moreover, a strong rural market has also led to the better performance of the small commercial vehicle businesses than that of M&HCVs. This has driven Tata Motors to the second position for the first time as it is the largest seller of MHCVs.

Experts say the M&HCV segment is already riddled with excess capacity in the market. COVID-19 has worsened the market position of M&HCVs with abrupt lockdowns and contraction in economic activities.