01 Nov 2021
The Company's January-September Truck Sales Totalled 10,408 Units.
Daimler India Commercial Vehicles (DICV), which sells the BharatBenz truck brand and bus brand in India, is expected to end the current calendar year with total truck sales nearing 2019 levels, by a strong recovery in the country's commercial vehicle market.
With truck sales (up from 9 tonnes) growing by 29% to 3,640 units during the September 2021 quarter, the company's January-September truck sales totalled 10,408 units, higher than the 2020 volume 9,624 units.
Demand Improves
The company had registered a volume of 3,528 units in the December 2020 quarter. With a better demand scenario in the medium and heavy commercial vehicle segment, the company is likely to record higher volumes in this quarter compared to the same period last year. Consequently, the company's total truck sales for 2021 are expected to reach approximately 2019 volumes of 14,474 units. In 2018, the company achieved the strongest sales when the company registered 22,530 units.
"Volumes of the CV industry are expected to improve, because of healthy freight availability, increased construction activity and better freight rates. In addition, Channel checks show that volumes are being upheld by some interest for tippers, in-country esteem added and more modest upstream substitution vehicles,"he said. Automotive Analyst at Emkay Global Financial Services.
Over the past two quarters, CV sales improved by 65% and grew 25% in the September quarter, primarily due to a lower base. However, demand will continue to improve in line with the improvement in general economic activity and an increase in road construction projects.
Recovering Segment
In a recent interview with BusinessLine, Satyakam Arya, Managing Director and CEO, Daimler India Commercial Vehicles (DICV), said that the Sales recovery in the Commercial Vehicle segment has been impressive.
With the recent momentum, M&HCV industry is expected to reach 2021 with total volumes near 2 lakh units, though this will still be below the pre-covid size of the industry.
DICV's market share (in the above 9-tonne segment) stood at close to 8 per cent during January–September 2021, down marginally from 9.1 per cent in the same period in 2020, according to the data provided by Daimler AG, DICV's parent company.
Fill Wallet Gaps
As the Commercial Vehicle industry enters the next growth cycle, DICV will introduce new products to fill gaps in its product portfolio range and improve demand.
It will also increase its dealer network to help the emerging growth curve.
"We have announced that we will achieve 350 touch points by 2022 and we are on track to reach that. We have added 8 new touch points around the same time. At the point when we started the year, we had around 250 focus and we might end 2021 with 270," said Satyakam Arya.
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