The worst is over for the business automobile (CV) sector, which expects to witness restoration within the coming 12 months, mentioned Vinod Aggarwal, CEO of VE Commercial Vehicles (VECV), a three way partnership between Volvo Group and Eicher Motors.
“As far as the industry is concerned, I think the worst period is behind us,” Mr. Aggarwal mentioned in an interview.
“Going forward, you will see things getting better as the sentiments have become positive in the economy. In Q2, the GDP contraction was less than what was earlier anticipated. CV industry is totally dependent on the economy and sentiments.”
The VECV MD was talking on the sidelines of the beginning of economic operations on the JV’s new truck plant at Bagroda close to Bhopal, Madhya Pradesh.
Mr. Aggarwal famous that the truck phase had seen year-on-year quantity progress in each October and November, albeit on a decrease base. “Numbers are still low, but the decline has stopped. We are optimistic about 2021. We expect replacement demand is going to be very high. The volumes will be less than 2018-19, but better than 2019-2020.”
In addition to pent-up alternative demand, Mr. Aggarwal mentioned there was good demand for development vehicles, CNG vehicles in addition to from the e-commerce and haulage segments.
Mr. Aggarwal mentioned the brand new plant had been arrange with the most recent manufacturing applied sciences and primarily based on ‘industry 4.0’ requirements and was essential from a strategic perspective.
“When the markets come back, we will have the adequate capacity for trucks… given the current demand scenario, we may not have that much immediate need from the numbers point of view However, from the organization, technology, production and manufacturing quality… this plant is of strategic importance for us,” Mr. Aggarwal added.