Commercial vehicles (CVs) end 2008 with their sales in free fall, totally succumbing to recessionary pressures. Market leaders Tata Motors ended what many consider to be among the worst quarter performances for the CV segment ever with a 51 per cent fall in domestic sales. Ashok Leyland fared even worse with their sales plummeting by 74 per cent.

Dilip Chenoy, SIAM director general, said that with industrial growth and construction grinding to a halt and GDP growth slowing, the CV market would be the first to take a hit and the biggest losers would be the sales of medium and heavy commercial vehicles (MHCVs).

“The freight market, which once operated at 85 per cent capacity utilisation, is at best operating at 35 per cent these says because steel, iron ore and cement are not moving. No new road construction programs have been announced since June,” he explained.

In December 2008, Tata Motors scraped together the sale of 4,811 units — a 69 per cent fall against the 15,689 units that had been sold in December 2007, when economic activity was booming. Similarly, Ashok Leyland saw sales nosedive by 74.54 per cent, selling only 1,390 units in December 2008, over 5,460 units sold in the same month last year.

Light commercial vehicles (LCVs) have also been seen their sales descend further into the red. December 2008 saw Tata Motors sell 9,245 units over the 12,972 sold during the same month last year, a 28.70 per cent drop. Ashok Leyland managed to toss together a 7 per cent growth in sales, however there base is minute enough to allow for such aberrations to occur. They sold 30 units in December 2008 against 28 units sold in December 2007.

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