In a sign of demand restoration, main truck makers Tata Motors, Ashok Leyland and VE Business Automobiles have reported robust year-on-year (YoY) gross sales development for October.
The nation’s prime industrial autos (CV) maker, Tata Motors, reported a three per cent improve in its medium and heavy CV (M&HCV) gross sales at 5,033 items final month, towards four,893 items in October 2019. Its intermediate and lightweight CV (I&LCV) volumes grew 12 per cent YoY to four,286 items (three,832 items).
The No 2 M&HCV maker, Ashok Leyland, noticed gross sales rise 13 per cent to three,762 items (three,340 items). Its mild industrial car (LCV) gross sales grew 11 per cent to five,004 items, helped by its new pick-up ‘Bada Dost’.
VE Business Automobiles (a Volvo-Eicher three way partnership) recorded home M&HCV gross sales of three,815 items (three,309 items), up 15.three per cent.
“About two months in the past, there have been nonetheless considerations across the tempo of restoration in CVs,” PB Balaji, Group Chief Monetary Officer, Tata Motors, mentioned final week whereas discussing the corporate’s efficiency. “However from September, very clearly, we have now been seeing development coming again. I&LCV began to see momentum from September and M&HCV has additionally come again to demand development.”
Inside M&HCV, the tipper phase did nicely, due to mining, and highway and port-related tasks kicking off, he mentioned. The cargo phase can also be enhancing, he added.
Financing seems up
“Much more reassuring is that the financing considerations are beginning to abate. As soon as the moratorium was over folks noticed issues weren’t as unhealthy as they thought and lots of people have been eager to repay loans on time. Subsequently, we’re seeing some enchancment within the mortgage restoration price and that’s making certain extra finance coming into the CV phase as nicely.
“If this pattern have been to proceed, I might count on to see a lot of the points within the CV phase getting resolved within the subsequent three months or so,” mentioned Balaji.
Daimler India Business Automobiles, the Indian arm of the German auto main, had reported development in BharatBenz truck gross sales for the September quarter.