TNI || New Delhi || 5th April 2022
In Monday’s intra-day session on the BSE, shares of SML Isuzu rose 18% to Rs 697 after the company said that it has decided to raise prices of its goods (across all models-trucks and buses) by 3–4 percent, effective April 4, 2022.
SML Isuzu said in an exchange filing that even though the company is taking steps to deal with rising commodity prices and other costs, the higher revision was needed to partially offset the higher costs.
In the meantime, overall sales for March 2022 grew by 43% to 1,363 units. Cargo vehicle sales increased by 3% to 698 units, up from 679 units a year ago. SML Isuzu’s main interest is the manufacturing of commercial vehicles plus related components.
The domestic commercial vehicle industry (CVI), which was already in a slump, saw a severe volume contraction in FY2020–21 (FY21) as the COVID-19 increased its miseries.
Due to the closure of schools and educational institutions, the lack of tourism activities throughout the year, and the widespread adoption of a work-from-home culture by most companies, the need for buses has been severely impacted.
With a steady improvement in the economy, development and infrastructure activity, a regular monsoon, and last-mile transportation, truck demand is expected to increase.
Analysts predict the scenario will stabilise starting in Q1FY23, with solid double-digit volume growth of roughly 12% YoY expected in FY23E for the global vehicle industry.
IOC To Inject 840 Crore Into POL Plant, NE Storage CapacityIt will benefit from a low starting point after three years of decline, as well as favourable demographics, anticipated economic growth, and a revived emphasis on personal mobility