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Tata Motors News: Double-digit growth expected this year CV industry: Tata Motors

The commercial vehicle industry is expected to grow by double digits this year, driven by strong demand as economic activity accelerates, although soaring fuel prices and rising interest rates on mortgages are headwinds. Tata Motors Managing Director of Greek Warg. The Commercial vehicle The segment, which peaked in 2018-19 and has an industry size of over 100,000 rupees, has been on a downward trend in the next two fiscal years and has begun to gain momentum from the previous fiscal year.

With regard to payload, it may take some time to reach the maximum again, but as demand for commercial vehicles (CVs) with higher payloads increases, the industry may reach its previous peak sooner.

“Last year, the economy was strong again and I think the commercial vehicle market grew by about 26%. We (Tata Motors) grew 33%. It’s better than the industry,” Wagh said. .. PTI.

In the last three years, “FY19 was the last peak in the commercial vehicle industry with more than one million units. After that, there was two years of downtime. FY20 was one year. BS- Regarding the transition to VI and the preparation of FY21, the year of COVID. In both years, the market was depressed and the volume of FY21 was almost 52% of the volume of FY19. ”

In response to a question about the overall situation of the CV industry, he said, “I’m seeing the industry come back. In terms of quantity, it may take a little longer to reach its previous peak, but at the same time. I need to reach the load capacity sooner, as more vehicles with higher loads are sold today compared to FY19. ”

He said this was due to the demand for CVs generated by the work being done on the infrastructure driven by the government’s allocation to budgeted sectors.

“Since then, much work has been done in the urban housing sector. Overall consumption is increasing and the rural growth story is not compromised. All of this combined for commercial use this year. The car industry should grow steadily, “he said.

When asked what the growth rate would be, he said, “We should grow by double digits this year as well.”

As for Tata Motors, he said his goal was to be better than the industry like last year.

But Wagh said it wasn’t a perfectly smooth ride for the CV industry.

“Needless to say, there are some headwinds, whether it’s inflation in fuel prices or rising interest rates, which will increase customer EMI,” he said.

On the plus side, “Fares have risen in recent months. This is a function of supply and demand, and if there are requirements for freight transportation, the use of freight will surely progress.” As it grows, the fleet will grow and people will go forward and buy vehicles. Therefore, this year is also the last of last year, so it should be a good year. ”

Commenting on the impact of rising commodity prices, Wag said it was unprecedented.

“The rise in steel prices to date is daunting. In commercial vehicles, almost 45% of the cost structure is directly affected by steel, so the impact of rising steel prices is significant. , The impact is quite large., “He said.

Tata Motors said it is trying to pass on cost increases through vehicle price increases: “Last year we raised prices almost quarterly, but it wasn’t enough to counteract the rest of the impact. I am. ”

When asked how many rounds of price increases the company would need to fully offset the impact of rising commodity costs, he said, “It depends on the percentage increase you take. Which is the last important thing? How do you get a margin profile back. That’s what we’re looking at and we’re working on a comprehensive margin improvement program. ”

https://economictimes.indiatimes.com/industry/auto/lcv-hcv/cv-industry-to-see-double-digit-growth-this-fiscal-tata-motors/articleshow/91413350.cms Tata Motors News: Double-digit growth expected this year CV industry: Tata Motors

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