Commercial vehicles set for heavy-duty FY24 sales, revenue expected to rise 30%
Sales of commercial vehicles, a barometer of economic activity, are expected to hit an all-time high in FY24, fetching record revenue for companies such as Tata Motors, Ashok Leyland and VE Commercial Vehicles.
Pricier heavy-duty vehicles are driving demand amid record government spending on infrastructure and increased freight movement. FY24 sales may marginally surpass the previous peak of 1,007,311 units in the pre-Covid year of FY19, but revenue is expected to rise about 30% from that year.
Vehicles have become costlier due to more stringent emission norms and there’s been growing demand for trucks with higher payloads-both contributing to higher per-unit revenue.