The overall bus sales including exports has declined by 6.13% as compared against last fiscal. During this fiscal year 2012-13, 105,293 units were sold as against 112,165 units for the previous fiscal. The overall economic slowdown, high interest rates & Diesel price instability are the main reasons contributing to this de-growth in this financial year.
Meanwhile in recent budget, excise duty has been reduced on Basic chassis benefiting local Bus body manufactures. From last couple of years all Bus OEMs have started to push full built vehicle. Some of them have already started to invest in their own bus body manufacturing units. In Union budget for 2013-14, Rs 14,873 crore has been allocated for the JNNURM scheme, with major portion of it for purchase of around 10,000 buses. Urban local body, Corporation, SRTUs are expected to take advantage of the scheme to add new fleet.
The M&HCV segment, overall sales has dropped by around 9% including export. 53,663 units has been sold in FY 2012-13 as against 59,091 units sold last for FY 2011-12.
LCV segment also registered de growth of 2.72% including exports compared to last FY 2011-12. 53,074 units were sold in FY 2011-12 as against 51,630 units sold in this FY 2012-13 year. This year we are not expecting major growth in this segment since most of the schools/institutions have bought new buses last year due to implementation of Euro IV emission norms in major cities.
Domestic Bus segment is having more than 85% share. In Central European countries, their biggest market is outside home market. There are lot opportunity for Indian OEM to explore export market.
OEM wise Sales Analysis:
Ashok Leyland has sold 18,642 units with 10% de growth in FY 2012-13 compare to FY 2011-12. Tata Motors and VECV has sold 17,926 and 4,624 units with -13% de growth and 17% growth in this FY. Along with Eicher, SML Isuzu, Mahindra Navistar also has registered positive growth. ACG is expecting some new and upgraded product range from SML Isuzu.
Ashok Leyland has lost 2%b market share in FY 2012-13 from 42% to 40%. Ashok Leyland chassis type are most preferred due to the ease of body building and less maintenance cost. It gives good economy to the customers. Tata Motors has also lost 3% market share in M7HCV segment. Eicher, SML Isuzu and Mahindra Navistar has gained market share from 2 to 1%b range. Premium vehicle segment is stagnant.
Tata Motors and Force motors are top performers in LCV segment. However Tata Motors has registered 2% de growth in LCV segment also.
Tempo Traveller is flagship product of Force Motors and enjoying market leader position from couple of years in its segment. Eicher has shown maximum growth in LCV segment with 22% growth over last FY 2011-12. Ashok Leyland could not introduce suitable product in this segment.
No major fluctuation in market share in FY 2012-13. Force Motors has launched new variants of Tempo traveler. Tata Motor is a market leader in LCV segment with 43% market share. Ashok Leyland is a very small player with 1% market share.
Thanks ACG Databank and SIAM for facts and figures.
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