Commercial Vehicle Sales in 2016 May Surpass 2011 Records
Published On Feb 04, 2016
On the backdrop of a rising infrastructure industry, commercial vehicle sales this year are predicted to reach record breaking numbers and surpass the previous peak of 2,40,000 units in 2011. With a surge in replacement demands, construction industry and freight movement, heavy duty sales witnessed a 36 percent growth rate in 2015, reaching 2,10,000 units. “With the infrastructure story likely to fall in place in the coming financial year, we should be able to surpass the earlier annual record of 240000 units,” said VE Commercial Vehicles Chief Executive, Vinod Aggarwal.
The intervening years between 2012 and 2014 were hit by a slowdown in the industry, with a decline in markets such as petroleum oil lubricants, logistics and LPG. Witnessing a resurgent market condition in the last fiscal, operators are currently replacing older machines and rebuilding their fleet. Rajesh Kaul, Business Head at Tata Motors, explained, “Construction and infrastructure, contributing 68 percent of the tipper industry, have seen a late surge in the last two quarters and we are expected to be a major driver going forward, on account of asset mobilization by contractors, as more and more road and infrastructure projects gets clearances and start operation.”
Other factors that facilitated growth in the CV industry include a recent ban on CVs older than 10 years, along with a mandatory provision for ABS and speed limiters. Both of these events are thought to have spurred sales in the industry, with fleet operators rushing to replace aging vehicles. Nalin Mehta, Chief Executive, Mahindra Trucks and Bus division remarked that a mindset of “Pre-buying ahead of changes in emission norms” was a pivotal factor in the soaring M&HCV demand. “Major drivers for industry-wide HDT (Heavy Duty Trucks) growth included government efforts to reduce overloading, leading to new buys recreating corresponding capacities,” said Mr. Sominder Singh, Vice President of domestic sales, Daimler India Commercial Vehicles.