Tata Motors Ltd. expects the commercial vehicles industry to grow over 30% in the next fiscal on the back of cyclical demand uptick and overall recovery of economic activity, according to a top company official.
“One can now say that the economic recovery is well and truly in place and we see the last quarter GDP growth has been positive. The same thing is expected this year. Next year also both the government and RBI have given projections that the GDP should grow in double digits,” President of Tata Motors’ commercial vehicle business unit, Girish Wagh, told reporters in a virtual conference.
The domestic CV industry, which started to go on a slump from November 2018 due to increase in axle load norms, credit crunch and economic slowdown, coupled with BS-VI transition and the disruptions of the Covid-19 pandemic, is now recovering gradually, he added.
From a decline of 90% in the Q1, to a dip of 24% in Q2 and a low single digit drop in Q3, the CV sales have picked up momentum, he said, adding that even in the Q4, month-on-month there has been growth in sales.
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