Demand of Heavy and Medium Commercial Vehicles on the Rise
Post the nationwide lockdown due to Covid-19, the industry has seen a rise in the demand of Heavy Commercial Vehicles (HCVs) and Medium Commercial Vehicles (MCVs) since July 2020. The demand for these kinds of vehicles generally is an indication of an improving economy. The demand for these vehicles is expected to rise even more as speculated by experts who say these vehicles will be demanded by the increase of mining and construction activities.
“With lockdown being lifted, movement of goods has increased and that is essentially what is driving the demand for trucks...and we expect it to be strong for FY21 as well” said Anuj Kathuria, chief operating officer at Ashok Leyland in an interview on this subject.
Girish Wagh, President (commercial vehicle business unit) at Tata Motors quoted, “Gradual recovery in M&HCV during recent months has been fairly broad-based, across regions and different sectors like steel, cement, containers, white goods and auto, in addition to the early gainers like e-commerce and POL (petroleum oil and lubricants) sectors”.
The demand for raw materials is also expected to rise with the government’s infrastructure and development projects, which will require the use of HCVs and MCVs in the upcoming financial year.