Despite sluggish demand for small commercial vehicles in the current financial year, the country’s largest pickup maker Mahindra & Mahindra Ltd expects India’s small commercial vehicles segment to grow between 5-10% on a year-on-year basis in 2024-2025 on the back of robust spending on infrastructure, considering the upcoming Lok Sabha elections, and product offerings.
“The industry (small commercial vehicles) has been doing fairly okay. I would not say there is substantial growth, the industry has more or less remained flat. But the industry is going to see growth next year because of the infrastructure investments happening in the country,” Mahindra Auto Vice President and Head of Sales Baneshwar Banerjee said to Autocar Professional.
Banerjee said though the sales of commercial vehicles with a capacity of less than 3.5 tonnes slowed down during 2023-2024 (FY24), the growth is pegged at around 5-10% for the next financial year (FY25). The slowdown in the category can be attributed to degrowth in the sub-2 tonne category, as many consumers looked to move to higher payload vehicles to optimise load carrying amid stringent regulations on overloading.
As per the data from the Society of Indian Automobile Manufacturers, the domestic sales of goods carriers with a capacity of up to 3.5 tonne, or small commercial vehicles, rose 24% on year to 524,637 vehicles during 2022-23.
Mahindra & Mahindra’s growth in the small commercial vehicle space has outpaced the industry in the current financial year and expects to continue the momentum going forward. While launching the new variant of its Supro, Banerjee said the model is the only growing brand in the minitruck segment in FY24.
“FY24 has been significant in terms of our market share gain in this category. With product launches in this category, we have now kind of ensured that we have products for all customers’ needs. And we have been able to provide that at a price point, which is quite compelling,” Banerjee said.
The growth in small commercial vehicles is linked to the growth of the Indian economy as increased freight movement and last-mile connectivity can boost the demand for vehicles. Improved road networks and booming e-commerce are other major drivers of growth.
Banerjee remains optimistic about the industry and the company’s growth going forward with the kind of government initiatives in manufacturing, infrastructure, and its capacity.
Meanwhile, Mahindra & Mahindra plans to introduce air conditioning in its pick-up range in the coming months in a bid to improve driver comfort and safety.
