The domestic commercial vehicle industry is estimated to reach record sales volumes seen in 2018-19 in the current fiscal year, and grow rapidly over the next few years along with the growth of the overall economy, VE Commercial Vehicles (VECV) MD and CEO, Vinod Aggarwal, said on Monday.
The executive noted that during the first seven months of the current fiscal year from April to October, the heavy duty truck segment grew by 15 per cent. In a conversation with PTI, Aggarwal said, “We are expecting that this year the industry should either be very near to the peak or it may even cross earlier peak of 2018-19. The industry is expected to grow over the next few years with the economy slated to cross the USD 5 trillion mark.”
Explaining the reasons behind the growth, the executive noted, “If we look at the economy, we are now at around USD 4 trillion mark and this economy is going to reach the USD 5-7 trillion mark the way it is growing. And if the economy grows, the commercial vehicle industry also grows because when more goods are produced more commercial vehicles are required to move them from one place to another.”
Aggarwal further said that the new age customers such as e-commerce firms look for better turnaround time, and as such, the old trucks are expected to be replaced by new ones. “When new trucks are offering a better cost of ownership then it means the old trucks cannot do the job…the e-commerce customers, they define very clearly that my goods need to be delivered in so many hours. They do not tolerate if a truck delivers late…So therefore all the older trucks will come back for replacement,” he said.
Additionally, the executive stated that the huge investment potential of infrastructure in the country should result in the growth of the commercial vehicle industry. “When you have more capital investments, more infrastructure projects it means you need more construction trucks because cement and steel can only be moved by trucks or by railways,” he said.
Talking about the joint venture between the Volvo Group and Eicher Motors, VECV, the executive shared that the firm is prepared to offer technologically advanced products in the market. “We are absolutely well placed to shape up the future of the commercial vehicle industry. The company is working on host or alternative powertrains to prepare for the future,” he added.
Notably, the firm launched four heavy-duty trucks under the Eicher Non-Stop Series catering to the long-haul transportation needs in the country.
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