Truck and bus manufacturers expect an increase in demand thanks to the previous purchase of BSVI
CHENNAI: The truck and bus market, which has been affected by the slowdown in sales, is experiencing some resurgence, particularly in intermediate dump trucks and medium-duty trucks, as well as in bus segments.
According to commercial vehicle marketers, a combination of factors that include pre-purchase, infrastructure spending and the rise of e-commerce have contributed to the trend.
Said Anuj Kathuria, COO, Ashok Leyland : “In the first 9 months of the fiscal year, trucks have dropped 42%, but buses are better. Our bus volumes have increased by 20% and we have gained a 5% market share due to large orders from some state transportation units, including Tamil Nadu. for the change in the axis norms.
Part of the trend is driven by pre-purchase before the deadline of March 31 for BSVI.
Said Vinod Aggarwal , MD and CEO, Volvo Eicher Commercial Vehicles: “This quarter there will be pre-purchase before BS6 prices rise. Also February-June is the time when schools buy buses. Some large fleet operators have also started buying, but they are generating tough bargains and a replacement demand is also coming, ”he added.
What has helped the sentiment, particularly in the medium-sized truck segment, is the boom in the e-commerce segment. This is also driving truck companies to customize their aggregates for durability due to increased use.
Trucks normally travel between 10,000 and 12,000 km per month, but the electronic communications fleet travels between 20,000 and 25,000 km per month and sometimes up to 40,000 km as well.
Said Satyakam Arya, MD & CEO, Daimler India Commercial Vehicles (DICV): “The e-commerce segment is very time sensitive. Two key decisive factors for customers in this segment are reliability and faster response time. E-commerce trucks also require more value-added features such as cameras, security and connectivity. The e-commerce industry in India is expected to reach $ 65 billion by 2020 and we will definitely participate in this growing market that offers more customized solutions. ”
The customised solutions include fuel options too. Said VECV's Aggarwal: “Some shorter routes like Delhi-Jaipur or Delhi-Chandigarh are using CNG trucks. The new generation trucks are designed to be driven more. Apart from durability, cabin comfort also ensures 2x or even 3x usage.”
As for the dump trucks, here government announcements about infrastructure spending have brought some joy. The tippers were stuck because the payments were stuck, but now with the government's approach to infrastructure, things could start moving, Kathuria said.