30 per cent growth in M&HCV sales during April-October
The M&HCV segment has seen quite a good growth in the first seven months of FY15-16. The market leader Tata Motors has very much been part of the growth, registering a sales increase of 30 per cent in the segment.
In an exclusive interaction with MOTORINDIA, Mr. Rajesh Kaul, Business Head, Intermediate, Medium & Heavy Trucks, Tata Motors, said: “The M&HCV segment for Tata Motors, including cargo as well as Construck, grew by 20 per cent October stand alone.” The industry started showing signs of recovery from October last year. “So, from last year’s high when we did 8,200 vehicles in October, we did close to 10,000 units in this October, 9,904 to be precise, clocking 20 per cent growth,” informed Mr. Kaul. This is even more impressive when put in perspective from April to October this year. “We grew by 30 per cent in the M&HCV, compared to the same seven month period last financial year,” he asserted.
Asked about the contribution of Construck in the M&HCV, he was quick to share the percentage of growth registered. “In the last seven months the Construck range for Tata Motors has grown by 8 per cent”.
He went a step further and asserted that this growth has put Tata Motors on track to register a year-on-year growth of 36 per cent in the cargo segment: “36 per cent is year-on-year cargo, 8 per cent is year-on-year Construck and combined is 30 per cent, where, of course, cargo contributes the larger chunk.”
Translating the overall 30 per cent growth into the number of vehicles sold, Mr. Kaul said: “In the last seven months for cargo we sold around 55,000 units and 11,500 units of Construck.”
Growth drivers
The primary drivers of this growth as Mr. Kaul referred to were the replacement demand from fleet operators, particularly the auto logistics segment. “The last 2.5 years had been subdued, and fleet operators had not replaced much of their fleet. But they cannot delay the need any more as the truck will incur more operative expenses,” he asserted.
Tata Motors also sees the demand coming from POL (Petroleum Oils and Lubricants) companies along with the States like Rajasthan, Himachal, Andhra Pradesh, Gujarat and Maharashtra where a spur will be created due to infrastructural activity picking steam and especially from the cement segment. “Add to this, the opening up of coal mines would see demand coming from the northern part of the country, particularly as we enter the winter months. Even the manufacturing sector is also set to grow,” beamed Mr. Kaul.
Tata Construck offers a wide range of powerful & fuel efficient tippers for construction and mining applications.
Advantage Tata
Tata Motors Construck vehicles, which will also be showcased at Excon 2015, range from two axle, multi-axle and prima range tippers, tip trailers, transit mixers, truck mounted cranes & concrete boom pumps. What sets these tippers apart, according to Mr. Kaul, is their innovative design which is based on insights into customers’ needs.
“Every innovation should lead to more uptime, think of driver comfort, help both the consignee and consigner and ensure total cost of ownership,” he affirmed.
Tata Motors has an extensive network across the country with more than 1,000 workshops, and over 7,700 retailers ensure effective service and availability of spare parts in every part of the country.
Speaking about the value that Tata Motors adds with Tata Fleet man, Mr. Kaul said: “Owners and operators of Tata vehicles will have an additional tool in their hands for managing their fleet in a productive and profitable way. There also exists a potential of combining Telematics with different vehicular systems like engine management system, fuel delivery system, transmission system, etc., to launch Telematics applications in fuel management, prognostics and diagnostics.”
Tata Motors commands a dominant marketshare in both cargo and Construck. “We are around 68 per cent in prime movers and 55 per cent in multi-axle tippers,” signed off Mr. Kaul.