The sale of commercial vehicles is increasing month after month. The reason behind this is the rise in economic activities and the high availability of freight now after the pandemic. The rate of freight in the market across the country is also now good. The recovery in the commercial vehicle industry has been most in the Medium and Heavy Commercial Vehicle’s segment. Its sale is expected to increase by 87% in comparison with the previous year.
The rise in the construction industry is also one of the reasons behind the productivity of fleet operators. Tata Motors is expected to have a strong market position not just in India but globally. This is because of the rise in demand for its commercial vehicles in various segments. The export market for Indian automaker companies is also increasing and is expected to go well in September.
The state of private vehicles in India is, however, still challenging. The supply problem of the auto companies still persists, which is continuously impacting the production capacity of companies. With the festive season coming in days ahead, companies expect to see growth in their volume of private vehicles. As per the data released by the brokerage firm Nomura, there is going to be a decline in demand for private vehicles. This decline is going to be 32% in comparison with the demand of the previous year in the month of September.
For the commercial vehicle segment, it is significant to note that the industry rose by 97% in August. This was in comparison to the sales made in August 2020. Now, the fact that sales of commercial vehicles will increase in September is bringing the industry closer to the normalcy of pre- COVID levels.
The sale of tractors is also increasing gradually. For the month of September, their sales are, however, expected to remain low. This can change in the future months coming ahead as the festive season is arriving.