Auto major Tata Motors Ltd expects to clock 20 per cent growth in its commercial vehicles segment in fiscal 2018-19, riding on an overall uptrend in the economy, a top company official said.
“The growth in the last two quarters has seen an upturn and this momentum is expected to continue,” Tata Motors Manufacturing Head (CVBU), A B Lall told PTI.
“We are expecting at least 20 per cent growth in commercial vehicles this fiscal over last year,” he said.
Tata Motors is also focusing on “fully-built” vehicles (including load bodies) in line with global practices, Lall said. At present, it sells tipper trucks with load bodies.
The Mumbai-headquartered company, however, is yet to finalise the manufacturing strategy, he said.
Lall said capacity utilisation of its commercial vehicles plants is on the rise, and debottlenecking of the facilities will be taken up to ramp up production.
At Tata Motor’s Jamshedpur plant, cabin-making capacity for trucks is also being augmented, the top company official said.
Sales of the commercial vehicles division rose 26 per cent 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 per cent at 16,239 units compared to 12,259 units last year.
Lall said the government’s new axle loading regulations are unlikely to have any significant impact on demand.
The Centre had raised safe limits for axle weight for transport vehicles by 20-25 per cent.