To Sum Up 2024: Top 3 Major Updates In The CV Industry
Modified On Dec 30, 2024 06:12 PM
The CV Industry has gone through numerous changes in 2024 affecting drivers and businesses. Let’s check them out in detail to know once again what drives this industry ecosystem forward. Read on
India's truck freight market is the country's backbone, ensuring economic opportunities, employment and financial gains. Understanding this aspect which facilitates profitability, the commercial vehicle (CV) space has developed significantly to become one of the largest sectors. With evolving needs, the CV space has shaped to become the largest in terms of sales, offering new business opportunities and a source of income for drivers, in India. So, let’s explore how India’s CV space gained significant traction in terms of sales, offering new opportunities, and also sum up how 2024 has transformed the sector with new offerings. As we go through this article, let’s also delve into the rules curbing the cargo transport sector, affecting the lives of truck drivers, to understand the significance of the issues:
Indian CV Segment Sales 2024
There are no two ways when it comes to how truck drivers benefit from automakers introducing new vehicles. Every opportunity starts with CV maker's products. So, let’s give them the credit by learning the demand for their products, and also help you as a cargo transport business owner understand why inducting a commercial truck now is the best option.
To begin with, the Indian CV space saw sales of around 97,411 units as per the latest Federation of Automobile Dealers Associations (FADA) report combined in October 2024. This sales report includes the total units of light commercial vehicles (LCV), medium commercial vehicles (MCV) and heavy commercial vehicles (HCV), and other categories, sold in the respective month of 2024.
The report states that 97,411 units were sold- a 6.37 percent year-over-year growth from 91,576 units registered in October 2024. However, HCV sales saw a 1.15 percent decline in 2024 compared to 2023. This can be a result of the slow economic activity within the large industrial sectors and CV price hikes. Although not significant, having increased the CV prices, endured by businesses planning on asset induction, the demand for HCV saw a fall.
You Might Also Like To Read: In A Nutshell: Exciting 2024 Commercial Vehicles Launched
Nevertheless, overall CV sales increased in 2024, with LCVs and MCVs seeing a fair share of the market. This is thanks to the increase in demand for compact vehicles in small business sectors and last-mile delivery businesses in India. Pinning it, LCV sales increased by 9.11 percent year-over-year (YoY) in October 2024, from 51,340 units in October 2023 to 56,015 units in October 2024. Meanwhile, MCV sales recorded 6557 units in October 2024 as opposed to 6164 units in October 2023 – a 6.38 percent YoY increase in retail sales.
Among the top 3 contenders for highest sales units to be recorded, Tata Motors stands in number one place registering 30,562 units sold in October 2024. But it still had to face a 6.84 percent YoY drop in retail sales. Tata Motors sold 32,806 commercial vehicles in October 2023 as opposed to 30,562 in October 2024. In the second place, Mahindra & Mahindra stands tall registering, 27,769 units in October 2024, up by 20.82 percent YoY from 22,984 units sold in October 2024. Ashok Leyland secured third place in this list, registering 15,772 units in October 2024, after selling 14,883 units in October 2023.
The reasons for this current market structure are several. Tata Motors, although saw a decline, has a wide range of small and light commercial vehicles on offer. These are primarily preferred by last-mile logistics and supply chain management companies in India. With significant developments in the e-commerce sector, the demand for such vehicles has remained high. This should be the factor driving the adoption of Tata Motors’ CV products. Meanwhile, Mahindra & Mahindra and Ashok Leyland are driven by a similar market trend. But, Ashok Leyland has a larger portfolio of HCVs, which typically sees a decline in demand.
Summing up 2024 sales and these market trends suggest which brands to choose. However, business-specific requirements also play an important role in helping you choose the right CV. Deeming this important factor in your decision, let’s now check out the challenges and other developments in the CV space that affected drivers in 2024:
Hit And Run Law 2024
Although the Bhartiya Nyaya Sanhita, 2023 (BNS 2023) Hit and Run Law was implemented last year, protests continued to take place in January 2024, in a slightly smaller ratio, affecting the lives of many. To those wondering what a hit-and-run means? It is referred to as an incident involving a motor vehicle hitting a person, another vehicle or property wherein the driver of the vehicle hitting another person with a motor vehicle and damaging property does not stop to assist the injured or report the incident to the authorities.
According to the new BNS Hit and Run Law implemented – drivers who flee from the spot without helping the injured and alerting the authorities can face 10 years of jail time and fines (Section 106(2), while those who report the accident may face up to 5 years imprisonment (Section 106(1). Now according to the truck drivers, the 10 years imprisonment seems adverse considering that some instances could be unintentional. Also, due to unfair blame and the risk of mob violence, drivers were against the law being enforced. Additionally, doctors get only up to 2 years of jail time for the same offence, making truck drivers feel it is discriminatory treatment. These were the reasons which caused alarm among truck drivers.
The enforcement of the BNS law 2023 seems only natural considering the number of road mishaps that take place. The new law is a potential requirement to help drivers practise safe and defensive driving. However, there is a need for significant fine-tuning of the law and a scope for reconsideration to address the ambiguity in legislation, and among drivers.
However, all is not bad – A new law was introduced for LMV licence holders allowing them to drive trucks with up to 7,500 kg unladen weight. This news was a significant turning point for drivers embarking on a new business venture or planning to start a small fleet business. Let’s explore this 2024 news to understand its importance:
LMV Licence Law
Finally, one of the biggest news which came in as a relief for drivers was the introduction of the new LMV license regulations – LMV Licence holders are permitted to drive a transport vehicle with an unladen weight not exceeding 7,500 kg. The Supreme Court Of India judgement was headed by a five-judge Constitutional Bench headed by Chief Justice D.Y Chandrachud. This was a jolt to the insurance companies that were rejecting claims related to accidents involving transport vehicles – which were under a certain weight – following the previous law.
The core of the issue lies within the 2017 verdict which stated that transport vehicles, with gross vehicle weight not exceeding 7,500 kg, were not excluded from the definition of an LMV. The insurance firms were against it, also challenging the orders from the motor accident claim tribunals (MACTs) and the court in favour of the drivers. With its 2017 decision in the Mukund Dewangan case upheld, the court also mentioned that LMV and transport vehicles are not separate categories. The Insurance companies issued their side of the argument that it can cause a potential safety hazard since it would be equal to letting a three-wheeler driver operate a road roller. However, the verdict came in favour of drivers.
Conclusion: The Year 2024 So Far
The year 2024 was an eventful one, particularly for the CV space with significant improvement to the sector. The CV space saw significant figures in terms of sales showcasing the potential of the sector. Multiple laws came in to help improve the lives of truck drivers as part of the CV ecosystem, while some seemed to be ambiguous among them. Overall, the details we discussed here are the key 2024 moments in the CV space.
Read More
What Is A Truck Rollover And What Are The Tips To Avoid It? Here’s Your Answer