Heavy Duty Commercial Vehicle revenue expected to grow by 30% in FY24

Revenue on heavy duty commercial vehicle sales is projected to grow by 30% in FY24 as their demand is growing because the Indian government spending more on infrastructure projects.

Commercial Vehicle (CV) sales in India are expected to reach an all time high in FY24 with a 30% growth in revenue. Tata Motors, VE Commercial Vehicles and Ashok Leyland are among the leading profit making companies with growing demand for heavy duty trucks.

The demand for Heavy Duty (HD) trucks has been growing in India due to the government spending more money on roads and other infrastructure projects. The increased prices of trucks and freight movement are also contributing factors in generating more revenue for these companies.

Sales for HD trucks reached a total of 247,858 units in FY23. A previous hike was seen when total HD truck sales reached 1,007,311 in FY19 before COVID-19 happened. FY24 sales are expected to break this record and around 30% growth in revenue is projected when compared to FY23.

A total of 604,975 units of trucks and buses had been sold by the end of October. The sales numbers were at a total of 592,686 units last year by the end of October.

Vinod Aggarwal, CEO & MD at VE Commercial Vehicles (VECV) and President of the Society of Indian Automobile Manufacturers (SIAM) said, “Sales of heavy duty trucks that can carry more freight have grown in healthy double digits - 15% in the first seven months of 2023. The overall load carrying capacity in the system has gone up because of the migration to bigger trucks.”

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Heavy duty trucks have become more expensive because of the new emission norms but their demand is still growing. Demand for buses has also grown by more than 35% because of the new infrastructure spending by the government.

Dheeraj Hinduja, Executive Chairman at Ashok Leyland, in regards to HD truck sales, said, “We do think that we will hit a new peak and surpass the previous one. The next six months look very promising.”

Around INR 143 lakh crore are expected to be spent on Indian infrastructures till 2030. A 6.5% increase in the economy is also expected by the Reserve Bank of India (RBI). Both of these factors are going to support more HD truck sales.