>Commercial Vehicle Sector Update December 2009

I. Summary
The Indian Commercial Vehicle industry grew substantially by 95.5 per cent from 23,370 in November 2008 to 45,692 in November 2009. The Government Stimulus Package coupled with low base effect continued to aid the domestic sales growth for the month. The domestic sales grew by 98 per cent on account of growth in both LCV and MHCV segments. The MHCV segment grew by 132.7 per cent while LCV segment grew by 74.5 per cent. The exports too (for the first time in 12 months) grew at a convincing 76.9 per cent.

The domestic CV sales for the period of April-November 2009 grew by 12.4 per cent (Y-O-Y); from 270,335 units to 303,961 units. The growth in CV sales came in primarily from LCV segment which grew at robust 27.4 per cent from 134,705 units in April-November 2008 to 171,604 units in the same period last year. However, the MHCV segment remained subdued with a decline by 2.4 per cent. On a YTD basis, exports stood lower by 22.3 per cent at 26,126 units in April-November 2009 as against 33,628 units in the same period of the previous year.

II. Detailed Segmental Performance Analysis

1. Domestic Sales
The domestic CV sales surged up in November 2009. Lower base effect coupled with improvement in the economy led to growth in the domestic CV sales for the month. The CV sales for the month grew by 98 per cent over November 2008. The <= 3.5 tonnes, LCV goods carrier drove the growth by adding around 7242 units over the November 2008 sales. >16.2 tonnes to <=25 tonnes MHCV goods carrier too supported the growth with sales of 6010 units.

2. Exports
The trend for exports finally confirmed the change in direction in the month of November, growing at an impressive 76.9 per cent as against the exports in November 2008. This was the first time in the year that exports registered a convincing positive trend. Although, a part of the growth came due to the lower base effect of the previous year, even on an M-o-M basis the exports showed a positive trend growing at 27 per cent. The GC category continued to drive the exports. The LCV GC the largest segment of the exports added around 1322 units over the exports in November 2008, growing at 88 per cent. The MHCV GC segment was the next important segment with exports of around 1320 units in November 2009.

III. Company-level Statistics: Top three companies (mentioned in report)

IV. Industry News

■ Mercedes Benz India, received a bulk order of 150 and 100 trucks each from BGR Energy and Souwmya Mining in December 2009.

■ Premier Ltd launched 1.5 tonne light commercial vehicle (LCV) Roadstar in December

To read the full report: VEHICLE SECTOR