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Revival in the Indian economy likely to drive truck sale

Published On May 30, 2022By Trucksdekho Editorial Team

The overall buoyancy in the economy is reflected across sectors and is a harbinger of greater demand for M&HCV trucks. The large and small fleet operators are placing orders for trucks to serve the accelerated demand for bulk cargo shipping across the country.

The total sale of trucks in the domestic market is an indicator of an uptick in the economic activities taking place. Coming out of the pandemic related slowdown, the trucking industry is now bracing for greater demand for trucks this year across all the key tonnage segments. This confidence is coming from the fact that the Indian economy is now firing from all cylinders after almost two years of slower demand. With the government pumping money into various sectors and corporate India is also slowly gearing up for higher capex. All of which reflect positively on the Indian trucking and logistics industry.

According to industry experts, large fleet operators are looking to buy new heavy trucks to expand and strengthen their medium and heavy trucks fleet to cater to the demand from corporate India. Similarly, the individual truck buyer/transporter (1-5 truck fleet owners) are also gearing up to hit the purchase button to serve the spot cargo/logistics market with new trucks. Additionally, the sustained demand for the last-mile delivery across urban and rural India- the small and light trucks are likely to see higher sales.

The truck demand is further bolstered by the increase spent on infrastructure like highway building, and power plants by the government bode well for the trucking industry. Similarly, the fast pace construction, booming real-estate sector and mining sector would further accelerate the demand for tipper and high cargo/haulage/multi-axle trucks.

As a result of the significant competition in the Indian economy, OEMs and Industry analysts are expecting the overall truck sale in FY23 to exceed the last two years. With a positive business environment, robust demand across sectors has instilled confidence in fleet customers, logistics companies and transporters which the OEMs believe would further boost the truck sales.  

 

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