Medium, heavy commercial vehicle sales on multiple-year high at 2017-end

The volumes of medium and heavy commercial vehicles (M&HCVs), which bring the bulk of revenue to companies like Tata Motors and Ashok Leyland, stood at a multiple year high in 2017.

A Tata Motors spokesperson said the domestic CV industry witnessed challenge in the initial months of FY18 due to demonetisation (implemented in November 2016).

The transition from BS-III to BS-IV emission standards, followed by the implementation of the goods and services tax (GST) from July 2017 further contributed to the slowdown of the CV industry, particularly in the first quarter of 2018.

However, starting July, the industry bounced back owing to positive market sentiments after GST, government funding in infrastructure project and restrictions on overloading of goods leading to increased demand for high tonnage vehicles. The company sold 269,536 units of CVs (medium, heavy and light) in the domestic market during the first nine months of FY18, with a growth of 17 per cent.