Commercial vehicle sales picking up, likely to regain peak in the upcoming fiscal year: Kamal Bali, President, Volvo India

Commercial vehicle sales picking up, likely to regain peak in the upcoming fiscal year: Kamal Bali, President, Volvo India


Commercial vehicle (CV) sales, a barometer of economic activity, have been recovering and are likely to regain the earlier peak in the upcoming fiscal year, said a top industry executive.

With economic activity picking up, cargo movement has been on a rise. This, coupled with replacement demand from fleet operators, is expected to support sales of CVs above 3.5 tonnes in the coming months.

“The CV segment started seeing headwinds toward the end of 2019; then came the pandemic, Fortunately, in the current financial year, the industry is witnessing a pretty positive and strong rebound. At the rate we are bouncing back, we can reach peak volumes of about 500,000 units next year,” said Kamal Bali, President at Volvo Group, India, told ET.

Around 126,000 CVs were sold in the local market in the first six months of the financial year, more than doubling from 50,000 units in the year-ago period. Industry estimates as many as 275,000-300,000 CVs in this category will be sold in the ongoing financial year.

“After the second Covid wave, the markets are witnessing gradual demand recovery across most segments led by M&HCVs with improving fleet utilization levels, a higher number of road construction projects awarded and improving cement consumption,” Girish Wagh, executive director – Tata Motors, said earlier this month.

Bali said that demand from mining and construction sectors are already at levels seen prior to the outbreak of the coronavirus pandemic.

“We are very bullish about the growth prospects arising from the infrastructure and logistics industries in the country. With the government announcing the National Infrastructure Pipeline and Gati Shakti, on the demand side we do not foresee challenges in the next 10 years,” said Bali.

In April last year, a government task force firmed up a roadmap for capital investments of Rs 111 lakh crore in infrastructure under the National Infrastructure Pipeline (NIP) over six years through FY25, pledging 71% of the expenditure for energy, roads, urban development and railways, and envisaging a key role for private investors.

The Prime Minister subsequently announced to launch the Gati Shakti infrastructure plan, which will build upon the NIP by creating “an integrated framework” for infrastructure development across the country, which will ensure that various economic hubs are able to better utilise the investments on the sector being done by the government and private players.

Separately, Bali said with governments across the world increasingly looking at reducing emissions, there is a need to increase mobility while decarbonising transport on the sidelines of the 8th India Sweden Innovation Day themed ‘Accelerating India Sweden’s Green Transition’ held Tuesday.

In the CV segment, while there is potential to develop hydrogen fuel cell solutions for trucks operating long distances, battery electric options are more feasible on shorter routes, he said.



Source link

Add a Comment

Your email address will not be published.