Commercial vehicles to pace up in Indian market

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Commercial vehicle volumes are set to pick up with the ongoing economic revival, rating agency Acute Ratings and Research said.

According to the agency, the ease in restrictions on the movement of goods by various state governments and the recovery in the core infrastructure sector continued to remain positive for the CV industry.

“The combined domestic sales of Ashok Leyland NSE 1.22 %, Tata Motors NSE 0.99 % and VECV witnessed a growth of 7.5 percent YoY in September 2021, agency’s Chief Analytical Officer Suman Chowdhury.

However, the domestic sales of M&M witnessed a decline in sales of 26.8 percent YoY during the same period owing to supply challenges.”

On a sequential basis, the agency said that total sales of all the four CV manufactures showed an encouraging 14 percent MoM growth in October 2021 compared against September 2021.

“The growth in the CV industry is majorly led by a healthy recovery in domestic sales by market leaders Tata Motors and Ashok Leyland recording 3.2 21 per cent YoY and 13 per cent YoY growth, respectively.

“We believe that as industrial activity and the momentum of both public and private sector capital expenditure picks up further, the overall demand for CVS will continue to strengthen over the near to medium term.”

In terms of the domestic PV segment, the agency said that its volumes continued to reveal a slowdown in October 2021 as reported by the top 14 players in India.