Triggered by replacement demand and economic growth, India’s commercial vehicle segment sales are expected to hit their 2018-19 peak of 5,77,479 units in the coming financial year (2023-24), a senior executive said. from Volvo Eicher Commercial Vehicle (VECV) said.
Commercial vehicles (over 3.5 tonnes capacity) fell from the peak in 2018-19 to 2,34,299 vehicles in 2020-21 and increased to 3,43,199 units in 2021-22. “This year it is expected to be between 343,000 and an early peak of 577,000 units. We expect the industry to break through this earlier peak in the coming fiscal year. “Current fiscal year, the industry size was 210,000 compared to last year. The first half of the year was 125,000. There is a growth of 69%,” said Vinod Agarwal, Managing Director of VECV VECV is a joint venture between the Volvo Group and Eicher Motors.
He added that commercial vehicles are going through a recovery cycle and replacement requests have started, leading to an increase in demand. “There are a lot of pent-up replacements. Another is an increase in sales due to a resumption of infrastructure activities. Additionally, our economy is also growing and is expected to be around 7%,” Agarwal added.
The company said that in the first half of the 2022-23 fiscal year, it saw about 35,000 units, compared to 20,940 units in the first six months of the previous fiscal year. “We have had good growth so far and we also hope to see better sales in the second half. Last year, the second half was around 36,000 units,” he added. VECV recorded sales of 6,631 units in September 2022 compared to 6,070 units in September 2021, registering a growth of 9.2%.
Agarwal expected an increase in electric vehicle sales as the government is expected to launch more tenders. “We will participate in these tenders. We are also working on electric trucks, whenever there is a need, we will offer it. We will continue to work with the main private bus operators and transport companies from state in this area,” he added. . The company has already launched a separate subsidiary to manufacture, sell and operate electric buses. The division will be called VE Electric Mobility. So far, VECV has won a tender to supply 40 electric buses to Chandigarh Transport Company and won an order for another 150 buses from Surat City in the Bus Rapid Transport app ( BRT).
Recently, CESL (Convergence Energy Services) concluded a tender for 5,500 electric buses, and now the government has launched a new program called the National E-Bus Program, under which 50,000 electric buses would be deployed for the public transport in the next three years. four years, of which the requirement for 6000 buses has already been issued. The company said it is betting on all these initiatives for the future growth of this segment.
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