Truck sales show signs of recovery as economic activities pick up

Light and small trucks leading sequential resurgence

Commercial vehicles sales, a proxy for economic activity, are seeing a sequential uptick in volumes, holding out hopes of a year-on-year (YoY) recovery. It is being fuelled by a pickup in demand from the agri, mining and construction sectors, say transporters and manufacturers.

To some extent, the sales are also being led by an inventory push and discounting by companies, said analysts.

Cumulative sales of top four companies (based on monthly sales data) — Tata Motors, Ashok Leyland, Volvo Eicher Commercial Vehicles, and Mahindra and Mahindra — dropped 2.3 per cent to 53,505 units in September from a year