+
Commercial vehicle sales likely to rescale FY19 peak in two years
ROADS & HIGHWAYS

Commercial vehicle sales likely to rescale FY19 peak in two years

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 ...

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 ...

Related Stories

Gold Stories

Next Story
Real Estate

Kamdhenu Realities acquires 4-acre Navi Mumbai land parcel

Kamdhenu Realities has acquired a 4-acre land parcel from RPG Life Sciences on Thane-Belapur Road for approximately Rs 1.5 billion, expanding its commercial real estate portfolio in Navi Mumbai.The parcel has a total developable potential of 1.8 million sq ft, on which Kamdhenu plans to develop a destination-scale commercial and lifestyle ecosystem. The proposed development will combine corporate office suites with high-street retail, F&B outlets, double-height lobbies, business infrastructure and lifestyle amenities.Located close to IKEA and opposite the upcoming Pawane Railway Station, t..

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code