Society of Indian Automobile Manufacturers (SIAM) on Friday said that it will no longer post monthly commercial vehicle sales data and henceforth release only quarterly wholesale report of the segment.
"Some of the OEMs in the CV segment are not reporting wholesale numbers on a monthly basis because of which we will be sharing CV sales numbers only on a quarterly basis," Rajesh Menon, director general, SIAM, told a SIAM data release press conference on Friday.
The move comes shortly after Tata Motors, the largest CV maker of the country, stopped reporting its overall monthly wholesale numbers from April 2020 as the company sales crashed due to the Coronavirus outbreak. "In the current volatile scenario, we believe this helps us take the right long-term decisions for the business, helps our dealers to focus on serving customers and helps our investors to focus on the long-term drivers of the business and avoid needless short-term volatility," the company said in a statement on April 1, 2020.
Notably, Tata Motors holds above 42% market share in the domestic CV market. And therefore, the absence of month-on-month data from the segment leader forced the industry body to follow the same data release routine as of the company.
Unlike passenger vehicles and two-wheelers, rebound in the CV segment is happening at a slower pace. While the PV and two-wheeler volumes grew 17.02% and 0.17%, respectively, in July-September 2020, the whole volume of CV declined by 20.3% during the same period as per SIAM data.
An analysis by a rating agency shows that although CV retail sales are reviving, it remains a far cry from the pre-COVID levels. "As against the monthly sales of 80,000+ units reported before the pandemic, CV retail sales trended at less than 40,000 units in September 2020, even after four months of sequential improvement," the agency said.
On the outlook, it said that the pandemic outbreak will significantly impact capacity utilisation levels of the CV industry, which is expected to fall to 36% in FY21. Times are tough for the entire automobile industry, and as the data shows, it's even tougher for the commercial vehicle segment.