Dibakar Yadav || New Delhi || 3rd May 2022
India’s medium and heavy truck fleet is the oldest it has been in 20 years. According to automotive analysts, the M&HCV fleet age in FY21 was slightly under ten years, the highest in two decades.
Given the demands of emerging industries such as e-commerce, this fleet needs immediate replacement, which is increasing sales of medium and heavy trucks despite rising fuel prices.
Despite price hikes by truck companies due to ballooning steel and other product prices, sector experts predict a CAGR of 23 percent in the FY22-24 decade.
Due to the uncertain economic climate and intermittent COVID-19-induced constraints, truck owners, primarily retail customers, have already been holding on to their acquisitions for the previous two years.
In FY20 and FY21, the commercial vehicle (CV) sector had declines of 30% and 20%, respectively. Market sentiment improved gradually and consistently in FY22, with a sequential increase in each quarter relative to FY21, enabling the CV market to grow by 27% over FY21.
According to Rajesh Kaul, vice president, sales and marketing, commercial vehicle division, Tata Motors, the M&HCV segment rose by more than 50% in FY22 relative to the earlier year.
Construction, mining, and public infrastructure, which all require specialist vehicles and drive fleet replacement needs, are fueling part of the demand surge.
The industry is currently on the rebound, with key CV categories exhibiting indications of revival.
The MHCV category is on the mend thanks to strong demand from infrastructure, highways, mining, steel, as well as cement, as per Sanjeev Kumar, Ashok Leyland’s head of MHCV.
He added that in the coming quarters, Ashok Leyland would expand its CNG line. The recovery comes after two years of pandemic disturbance and a year of stagnation and BS6-related damage, as per truck marketers.
The prediction for FY23 is optimistic, and this financial year is expected to be better than the previous two, stated Satyakam Arya, MD and CEO of Daimler India Commercial Vehicles.