New Delhi, March 2 -- Automobile sales in February were good for almost all sub-segments and companies, but the performance of Tata group companies stood out. Domestic sales of Tata Motors' commercial vehicles (CV) grew 32.8% year-on-year to 40,893 vehicles, whereas rival Ashok Leyland Ltd's growth was 28% to 20,314 units.
The robust data vindicates statements from CV makers that replacement cycle demand is kicking in. The average fleet age needing a replacement is now 9-10 years versus 7-7.5 years before covid. A stable freight rate has complemented replacement demand. Nomura Research shows that the Truck Freight Index was up 8% year-on-year in February, though it was flat versus January.
While strong CV numbers reflect industrial dema...
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