December saw the commercial vehicle (CV) wholesales outperforming in both the M&HCV and LCV segments. With government infrastructure activity back on track, M&HCV volumes reflected good recovery, with flat volumes year-on-year (y-o-y) and LCV volumes growing by 14% y-o-y, according to Motilal Oswal Institutional Equities. CV is expected to see sustained growth hereafter. With pent-up demand largely fulfilled, it would be critical for demand to sustain in 4QFY21 and beyond, it said. CV major Ashok Leyland’s volumes grew by 14% y-o-y and out of the total CVs, LCV segment grew by 42% , while M&HCV grew by 3%. Tata Motors’ M&HCV domestic sales in December registered an increase of 20% while in the I& LCV segment, the company clocked a growth of 8%.
Nomura, in a research note, recently said that for MHCVs, the retail sales have been improving each month, and it expects new truck demand to revive as economic growth picks up. According to Jefferies, truck demand has been on a steadily improving trend. December truck registrations were up 27% month-on-month, although still down 16% y-o-y. Based on volumes reported by OEMs, it estimates that truck wholesales grew 20-25% y-o-y in December — first double-digit y-o-y growth in two years. E-way bill generation, measures of road freight movement, also rose 13% y-o-y in December.
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