Industry majors are bullish about growth in the current quarter
With demand for commercial vehicles showing strong signs of revival, industry players like Tata Motors and Chennai-based Ashok Leyland are optimistic about the future.
According to industry experts, this spurt in demand has been largely triggered by the second stimulus package announced by the government in January this year, which eased liquidity pressures to some extent.
A special line of credit was made available to Non-Banking Finance Companies (NBFCs) with the help of some state-run banks. Additionally, an accelerated depreciation benefit of 50 per cent was provided for CVs purchased in the current quarter.
While market leader Tata Motors has raised production levels over recent weeks, Ashok Leyland is bullish about growth in the current quarter exceeding that of the preceding two. According to Tata Motors, its sales of trucks, buses and light commercial vehicles grew 35 per cent in February, at 23,454 units, against 17,373 units sold in January. However, when compared to last year in the same month, sales have declined 25 per cent, from 31,317 units.
The company’s sale of medium and heavy commercial vehicles in February, at 8,810 units, was a jump of 52 per cent over January, which had seen much the same trend as in the final three months of last year.
Mumbai-based Mahindra & Mahindra saw a jump in demand for commercial three-wheelers in February. At 3,415 units, it was 45.5 per cent more than the 2,347 units sold in the corresponding month a year ago. The trend was similar for other light CVs.
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