• Home
  • National News
  • Legacy players are preventing Volvo-Eicher from expanding share in CV market: Eicher Motors MD
Legacy players are preventing Volvo-Eicher from expanding share in CV market: Eicher Motors MD
National  
moneycontrol

Despite retail demand being strong, commercial vehicle companies are relying on discounts to clinch bulk deals

 

Heavy discounts by bigger players in the commercial vehicle segment is leading to a loss in market share of the Volvo-Eicher joint venture as it is forced to forgo bulk deals in segments where the company had secured a strong foothold over the years.
 
Despite retail demand being strong, commercial vehicle companies are relying on discounts to clinch bulk deals. Though every truck and bus making company is offering discounts, each one blames the other for offering them.
 
Speaking to reporters on the sidelines of announcing the March quarter results, Eicher Motors managing director and chief executive, Siddhartha Lal, said, “Severe competition and heavy discounting by legacy players are preventing new players like VECV from strengthening in the market. We have had a marginal decline in Light and Medium duty trucks but have grown slightly in heavy duty trucks."
 
Though Lal did not name any truck and bus maker during the interaction by stating ‘legacy players’, he may have pointed at two of the strongest brands — Tata Motors and Ashok Leyland — who control 80 per cent of the Indian market.
 
The commercial vehicle market grew by 20 per cent last financial year to 8.56 lakh from 7.14 lakh units sold in 2016-17, as per data supplied by the Society of Indian Automobile Manufacturers. VE Commercial Vehicles, the Volvo-Eicher joint venture company, recorded a lower growth of 13 per cent in sales to 55,876 units as against 49,406 units sold in 2016-17.
 

 

​“Lots of competitors target us since we are strong in the light and medium duty truck segment. In commercial vehicle business, every deal we are looking at profitability on one hand and sales on the other. So you take a few and some you don’t, but we are there on every deal. We are willing to forgo a few deals which we think are too low for us to take," added Lal.
 
Notwithstanding, the Delhi-based company has lined up an investment of Rs 500 crore for this financial year. This will be spent largely on new products, BS-VI technology development and expansion of production capacities, according to Lal.

 
 


 
 


 
More in National
Minor ‘rapes’ 8-yr-old in Ghaziabad, FIR lodged

The Muradnagar police on Friday apprehended an 11-year-old boy for allegedly raping an eight-year-old girl while they were returning from school &n...

Recently posted . 0 views

Netaji’s daughter appeals to govt: Bring his mortal remains back to In...

According to Subhas Chandra Bose’s daughter Anita Bose-Pfaff , Netaji died in an air crash in Taiwan on August 18, 1945 and his remains are preserved at Tok...

Recently posted . 0 views

Kashmiri Engineer Suspected to be ISIS Sympathiser Deported from UAE

Thirty-six-year-old Irfan Ahmad Zargar, a resident of Chattatabal area on the outskirts of Srinagar, was deported from the Gulf country on August 14 and subjected t...

Recently posted . 5 views

No Cash to be Loaded in ATMs After 9 pm from Next Year, Lower Cutoff i...

In a notification, the Home Ministry said the new Standard Operating Procedures (SoPs) would come into effect from February 8, 2019 in view of the spurt in incident...

Recently posted . 0 views

This IIT professor once taught Raghuram Rajan, now works with tribals ...

For the past 26 years, Sagar has been living in Kochamu — a place which has no electricity and roads  

Recently posted . 1 views

AAP MLAs, MPs and ministers donating one-month salary for Kerala: Delh...

This is the deadliest deluge in Kerala in close to a century, which has claimed 194 lives since August 8. Over 3.14 lakh people have been moved to relief camps....

Recently posted . 3 views

 
 
 

Prashnavali

Thought of the day

Do You Know Why God Created Gaps between Fingers ? So That Someone , Who is Special To You , Comes And Fills Those Gaps , By Holding Your Hand Forever.
Anonymous