Segment wise sales of LCVs

600 40%
a as 30%
§ 500 6
x 46 9
= 400 20%
2 10%
300
§ 1% oe
8
g 200 -10%
2
i 100 -20%

0 -30%
FY15 FY16 FY17 FY18 FY19 FY20

mmm SCV mmm UpperLCV =—<y-o-y- growth

Source: SIAM, CRISIL Research

Bus segment

During fiscal 2015-2020, bus segment recorded a slow growth pace of 1%. The growth was led by the MHCV
segment which grew at 2% CAGR while LCV sales remained flat. Demand for buses in fiscal 2020 was impacted
due to safety regulations (emergency exit doors, fire detection and suppression, escape hatches and emergency
lighting) that led to an increase in cost of ownership of ~Rs. 50,000. This after a price hike of ~Rs. 15,000 due to
mandatory installation of vehicle tracking system and panic buttons in January 2019. After the price rise, demand
for buses in fiscal 2020, was also hit by weakening private consumption hampering demand from tourist bus.
operators and intercity travel operators. Weak corporate hiring and production cuts in manufacturing has also
impacted demand for corporate staff buses. However, schools and route permit buses have shown some resilience
in FY20. Demand from state transport undertakings (STU) ramped up in H2FY20 as STUs look to replace much
of their older fleet before the BS-VI price rise.

Segment wise sales of buses

120 20%
15%
05 15%
10%
80
£ 5%
2 60 39
oi 0%
g
§ 40
3 5%
=
28 -10%
0 -15%

 

FY14 FY15 FY16 FY17 FY18 Fy19 FY20

mmm LCV buses mam MHCV buses =<y-o-y growth

 

Source: SIAM, CRISIL Research

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