The Indian truck trade, which has been hit by the present financial slowdown, is prone to bounce again to progress by 2021, mentioned a high official of Daimler India Industrial Autos (DICV).
“From 2014 to 2018, sale of trucks [more than] doubled to 3.78 lakh units from 1.8 lakh units,” mentioned Satyakam Arya, CEO and MD, DICV.
“However, from the beginning of 2019, truck sales have been on the decline, due to several factors such as implementation of new axle norms, liquidity crunch and switchover to BS VI norms,” he mentioned.
12 months-to-date, the trade had offered 1.94 lakh vans, a drop of 24% in contrast with the January-August 2018 interval. “The market dipped in 2019 and will remain low key in 2020. Our growth will be in line with the industry growth,” he mentioned. Based on him, the sector is prone to witness 20-25% dip in 2019 (2.7 lakh items to 2.9 lakh items) and a 15% decline in 2020 (2.three lakh items to 2.5 lakh items). The yr 2021 would see a progress of 15% (2.7 lakh items to 2.9 lakh items).
To a query, he mentioned the implementation of a scrappage coverage would go a good distance in arresting the decline. However, it known as for the organising of an authorised scrap centre with a mechanism to commerce in scrap certificates.
Mentioning that non-availability of BS VI gasoline was a significant concern whereas pushing gross sales, he mentioned DICV had urged oil corporations to make sure that the gasoline was made out there from April 2020 onwards.
Transition to BS VI
“Daimler’s experience of already bringing 1.4 million Euro VI trucks and buses on roads means we are easily ready to transition our BharatBenz trucks and buses to BS VI by the April 2020 deadline. With this headstart, we will begin exporting India-built trucks by 2021-22,” he mentioned.
Mr. Arya mentioned that DICV had invested ₹500 crore to localise its Euro VI know-how for India, accomplished two million kilometres of testing, developed new services and 1,000 new components, and had achieved localisation of greater than 80%.
He additionally mentioned India would turn out to be the worldwide export hub for DICV’s BS VI vans and buses.
Relying upon the supply of BS VI gasoline in India, DICV would formally launch an upgraded vary of vans and buses throughout the first quarter of 2020, he added.