Commercial Vehicle Sales Surge Past FY19 Peak Amid Infrastructure Boost

The domestic commercial vehicle industry is set to surpass its FY19 peak, fueled by strong demand following GST rate cuts and government infrastructure projects. Tata Motors MD & CEO Grish Wagh highlights growth drivers but warns of potential impacts from fuel prices and regulatory interventions on long-term growth.

The domestic commercial vehicle industry is poised to exceed its FY19 peak as robust demand persists, buoyed by GST rate cuts and government infrastructure initiatives, according to Tata Motors Ltd MD & CEO Grish Wagh.

In an earnings call, Wagh expressed optimism about the industry's trajectory, noting that the current growth rate suggests total volumes will surpass the 10,07,311 units recorded in FY19. He attributed this growth primarily to increased consumption following GST 2.0 and infrastructure projects driving demand in sectors such as mining.

However, Wagh cautioned that the industry's continued growth could face challenges from rising fuel prices and regulatory interventions, which have historically led to significant price hikes. Despite these potential headwinds, he remains positive about the sector's outlook, provided freight demand continues to rise.

(With inputs from agencies.)