Commercial vehicle recovery may gather speed in FY22, say analysts

Besides Ashok Leyland, a slew of auto component makers will likely gain from volume growth

After witnessing the sharpest decline in volumes across all auto categories for the last two-and-a-half years, commercial vehicles are expected to see a reversal in fortunes. 

Volumes have seen a steady improvement on a sequential basis and this is evident with Tata Motors, India’s largest CV maker, reporting 17 per cent growth in volumes to 32,869 units in December 2020, as compared to 27,982 units in November. 

Ashok Leyland reported a 14 per cent jump in wholesales on a year-on-year basis last month. This trend can improve in the coming quarters for various sub-segments within the commercial space, say analysts. 

Segments, such as