MD & CEO, VE Commercial Vehicles (VECV) said the domestic commercial vehicle industry is projected to reach record sales volumes seen in the current financial year 2018-19, and grow rapidly over the next few years in line with the growth of the overall economy. Will increase. Vinod Aggarwal said this on Monday.
The heavy duty truck segment grew 15 per cent during the first seven months of the current financial year, April to October, the executive said. Speaking to PTI, Aggarwal said, “We are expecting that this year the industry will either be very close to the peak or may even cross the first peak of 2018-19. The industry is expected to grow in the next few years and the economy will cross the US$ 5 trillion mark.
Explaining the reasons behind the growth, the executive said, “If we look at the economy, we are now at around US$ 4 trillion and the way this economy is growing, it could reach US$ 5-7 trillion. About to arrive. And if the economy grows, the commercial vehicle industry also grows because when more goods are produced, more commercial vehicles are needed to transport them from one place to another.
Aggarwal further said that new age customers like e-commerce companies are looking for better turnaround time, and as such, old trucks are expected to be replaced with new trucks. “When new trucks are offering better cost of ownership it means that older trucks cannot do the job…e-commerce customers, they very clearly define what it means to deliver my goods in so many hours. Needed. They don’t tolerate it if any truck delivers late…so all the old trucks will come back for replacement,” he said.
Additionally, the executive said the commercial vehicle industry should grow as a result of the huge infrastructure investment potential in the country. “When you have more capital investment, more infrastructure projects it means you need more construction trucks because cement and steel can only be transported by trucks or railways,” he said.
Talking about the joint venture between Volvo Group and Eicher Motors, VECV, the executive shared that the company is ready to introduce technologically advanced products in the market. “We are perfectly positioned to shape the future of the commercial vehicle industry. The company is working on host or alternative powertrains to prepare for the future,” he said.
Notably, the company launched four heavy-duty trucks under the Eicher Non-Stop series to meet the long-distance transportation needs in the country.
Also read: EPFO added 17.21 lakh net members in September
