In a surprise development, Ashok Leyland has overtaken its rival Tata Motors in pick-up truck sales to grab the Number 2 position. Mahindra & Mahindra is the leader in this segment (2-3.5 tonne), which makes up little over half of the volumes in the LCV (light commercial vehicle) cargo market.
In 2014-15, Ashok Leyland sold 24,414 units (27,080 units in 2013-14), which were higher than Tata’s volumes of 21,231 units (40,692 units in 2013-14) in the pick-up category. Only M & M reported growth in sales at 129,755 units (123,175 units) in 2014-15 in pick-up segment.
However, Ashok Leyland has been reporting growth in sales of Dost over the past three months. Ashok Leyland has a market share of 14 per cent in this segment, while Tata’s market share fell to 12 per cent from 21 per cent last year. M & M has 73 per cent share.
Ashok Leyland sells only Dost in this segment, while Tata sells 2-3 products. Meanwhile, Tata came out with a new pick-up, Super Ace Mint, priced at over Rs.5 lakh, last month to boost sales in this category.
Pick-ups, termed as small commercial vehicles (SCVs), form an integral part of hub-and-spoke model in the transportation segment. They are used for last-mile delivery due to ban on movement of higher tonnage vehicles into the cities. In comparison to higher tonnage trucks, these allow better maneuverability, especially in congested areas and better economics owing to higher fuel efficiency. These vehicles are used extensively in semi-urban and rural areas by tiny and small businessmen and vendors. These vehicles are also lifelines for driver-turned-entrepreneurs in rural centres.
According to Wilfried Aulbur, Managing Partner, Roland Berger Strategy Consultants, SCV segment (includes Tata Magic/IRIS category and also sub-3.5 tonne cargo vehicles such as ACE, Dost, Super Ace, etc) is expected to grow at a CAGR of about 13 per cent till FY 2020, aided by demand for last-mile connectivity vehicles in both urban and rural locations.
