Tata Motors expects to clock 20% CV growth in FY2018-19
Auto major Tata Motors Ltd expects to clock 20% growth in its commercial vehicles segment in fiscal 2018-19, riding on an overall uptrend in the economy.
"The growth in the last two quarters has seen an upturn and this momentum is expected to continue," Tata Motors Manufacturing Head (CVBU), AB Lall said.
"We are expecting at least 20% growth in commercial vehicles," he said.
Tata Motors focuses on 'fully-built' vehicles
Tata Motors is also focusing on "fully-built" vehicles in line with global practices, Lall said.
At present, it sells tipper trucks with load bodies.
The Mumbai-headquartered company, however, is yet to finalize the manufacturing strategy, he said, adding, capacity utilization of its commercial vehicles plants is on the rise, and de-bottlenecking of the facilities will be taken up to ramp up production.
Sales of commercial vehicles division rose 26% in September
At Tata Motors' Jamshedpur plant, cabin-making capacity for trucks is also being augmented, the senior officer said.
Sales of the commercial vehicles division rose 26% to 46,169 units in September as against 36,678 units in the corresponding month a year ago.
The medium and heavy truck segment's sales in September grew 32% at 16,239 units compared to 12,259 units last year.
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Center's new axle loading regulations unlikely to impact demand: Lall
Lall said the government's new axle loading regulations are unlikely to have any significant impact on demand. The Center had in July raised safe limits for axle weight for transport vehicles by 20-25%, which has also been extended to existing or in-use heavy vehicles.