Tata Motors, addressing auto analysts, gave very positive comments on the commercial vehicle (CV) industry saying it is likely to grow 36-38 percent in FY22. Vinod Aggarwal, MD and CEO, Volvo Eicher Commercial Vehicles, Eicher Motors analysed the demand trends.
This year first half was a washout, based on this low base, there will be good growth next year, he said.
“It looks like the growth will be better than 2019-2020 and it should be somewhere between 2018-2019 and 2019-2020. We are expecting the industry to do much better next year,” he stated.
“We are already at pre-COVID levels as far as the truck industry is concerned. Buses are down. Next year it will be much better,” Aggarwal shared.
He expects replacements to be very strong in CV industry. Within two years, the company should reach its earlier peak of 2018-2019 or even cross that, he said.
“My expectation is that for CV industry, next two-three years will be very good because we have a lot of pent-up replacement demand. Sentiment is positive. Since the economic sentiment is positive, people have started replacing their old trucks,” he said.
On electronic control units (ECU) shortage, he said, “This is one of the major supply constraints. We are trying to cope up and manage the situation.”
For full interview, watch the video
(Edited by : Abhishek Jha)
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