The commercial vehicle industry is expected to perform “significantly” better this year than the previous year, with strong double-digit growth, a senior Mahindra Group executive said.
He also said that the mid-duty commercial vehicle (ICV) and light-duty commercial vehicle (LCV) segments are expected to fare better as some segments’ third-quarter performance experiences a “shrinkage” effect.
“I think this exercise will end significantly better than FY21. Last year, the entire industry was two lakh units. We believe that this year the industry is already sitting at 1.80 lakh.
“We will see good double-digit growth this year by the end of the year,” said Veejay Nakra, managing director (automotive) of Mahindra & Mahindra, in response to a question about the outlook for the commercial vehicle. (VC) industry.
From a base effect perspective, looking at year-to-date data, it’s encouraging for the industry, the 3.5 tonnes to 55 tonnes, which is up more than 60%, he said.
Nakra added that even in this segment they saw strong double-digit growth.
“But, if one were to look at the T3FY 22 data compared to the T3 FY21 data, some of the segments have already started to decline. This could be because when the industry opened in Q3FY21, there was pent-up demand and as a result there was an increase in sales,’ Nakra said.
The third quarter of the current fiscal year is already starting to see pressure on what will play out in the March 2022 quarter, Nakra said.
He added that there were several reasons for this. GDP forecasts have been revised a few times, the Omicron is starting to see some of its effects, freight rates haven’t risen in proportion to rising diesel rates, and overall truck utilization is no more than 45 at 50%.
“So we’ve seen the pressure on certain segments,” he added.
Earlier, MTB announced the “Get More Mileage or Give Truck Back” guarantee for its entire line of BS-VI trucks. MTB offers a complete range of trucks from 3.5 tonnes to 55 tonnes, including the VHC Blazo X, ICV Furio, and the LCV Furio 7 and Jayo ranges.
The mileage warranty, “Get More Mileage or Give the Truck Back”, was first offered on Blazo trucks in 2016. The mileage warranty will be applicable on the entire HCV, ICV and LCV range of Mahindra BS- VI, he said.
The “Get More Mileage or Give Back Truck” warranty on the entire line of trucks is a major breakthrough for the light, medium and heavy-duty industry. Given soaring fuel prices, there was no better time to introduce this customer value proposition,” Nakra said.
He added that this will reaffirm the confidence of the company’s customers in Mahindra’s ability to create technologically advanced and state-of-the-art products and set higher standards for the Indian CV industry while reflecting its commitment towards the segment.
”Get More Mileage or Give the Truck Back” was first offered on our HCV Blazo truck in 2016 and not a single truck has returned. All of our new introductions since – Blazo X, Furio ICV range and Furio 7 have delivered better fuel efficiency,’ said Jalaj Gupta, Business Manager (Commercial Vehicles Business Unit) at Mahindra & Mahindra Ltd.
He added that in addition, MTB offers a service guarantee to ensure higher uptime for its customers through the guarantee of faster truck turnaround, whether on the highway or at the dealer’s workshop. .
“We are seeing an increasing penetration of CNG fuel in LCVs as well as in the ILCV and ICV segments. It has risen to nearly a third YTD level this year due to mining.
“There is a growing transition to CNG (compressed natural gas) from diesel… We have our plans for CNG across our entire line of ILCV trucks,” he said.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)