Commercial vehicle sales likely to rescale FY19 peak in two years

20 Jan 2022 CW Team

Commercial vehicle sales are likely to rescale or near the FY19 peak in two years, if the current growth in CV sales continues.

The demand will overlap with the general elections in 2024. Last general election year 2019 witnessed CV sales cross the one-million mark.

Lowest in a decade, CV volumes in FY21, at 5.68 lakh units, were just better than the FY10 figure of 5.31 lakh. With the final quarter of FY22 underway, the CV segment is likely to end the year with more than 6 lakh units.

Ageing fleets, continued increase in freight rates, enhancing truck utilisation, strong demand from e-commerce players and maintained demand from infrastructure firms will help drive demand for commercial vehicles, primarily trucks.

Total truck usage in the nation is estimated to have enhanced to 45-50% in some sectors, it has surpassed 85%. As recently as Q1 this year, trucks were idling 10 days per month.

Jalaj Gupta, Business Head (commercial vehicles unit), Mahindra & Mahindra (M&M), told the media that after the peak in FY19, they witnessed two consecutive years of decrease. Beginning this year, they expect a reversal of the curve. They will observe development every year at least till the general elections.

According to the Society of Indian Automobile Manufacturers (SIAM) data, domestic CV sales jumped 30% to 4,66,763 units in the April to December period this year, compared to 3,58,203 units the corresponding period last year. While last year’s comparable data is on a low base, the double-digit increase this year is due to strong fundamental demand, as per the market experts.

Since June 2021, after the second Covid-19 wave, freight costs for trucks gradually gained momentum along with enhancing utilisation levels. Rate decrease in November was due to a significant drop in diesel excise duty by nearly 10%.

Image Source

Also read: Shriram Automall closes deal with Ashok Leyland for commercial ...

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

Commercial vehicle sales are likely to rescale or near the FY19 peak in two years, if the current growth in CV sales continues. The demand will overlap with the general elections in 2024. Last general election year 2019 witnessed CV sales cross the one-million mark. Lowest in a decade, CV volumes in FY21, at 5.68 lakh units, were just better than the FY10 figure of 5.31 lakh. With the final quarter of FY22 underway, the CV segment is likely to end the year with more than 6 lakh units. Ageing fleets, continued increase in freight rates, enhancing truck utilisation, strong demand from e-commerce players and maintained demand from infrastructure firms will help drive demand for commercial vehicles, primarily trucks. Total truck usage in the nation is estimated to have enhanced to 45-50% in some sectors, it has surpassed 85%. As recently as Q1 this year, trucks were idling 10 days per month. Jalaj Gupta, Business Head (commercial vehicles unit), Mahindra & Mahindra (M&M), told the media that after the peak in FY19, they witnessed two consecutive years of decrease. Beginning this year, they expect a reversal of the curve. They will observe development every year at least till the general elections. According to the Society of Indian Automobile Manufacturers (SIAM) data, domestic CV sales jumped 30% to 4,66,763 units in the April to December period this year, compared to 3,58,203 units the corresponding period last year. While last year’s comparable data is on a low base, the double-digit increase this year is due to strong fundamental demand, as per the market experts. Since June 2021, after the second Covid-19 wave, freight costs for trucks gradually gained momentum along with enhancing utilisation levels. Rate decrease in November was due to a significant drop in diesel excise duty by nearly 10%. Image Source Also read: Shriram Automall closes deal with Ashok Leyland for commercial ...

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..