Daimler India Commercial Vehicles (DICV), the Indian arm of Germany’s Daimler Truck AG, has begun 2022 on a positive note as it has posted double-digit growth in the sale of its BharatBenz trucks in the first quarter of the calendar year, supported by a strong recovery in the medium and heavy commercial vehicle market (M&HCV-trucks) in India.

DICV’s truck sales stood at 5,251 units in March 2022 quarter as compared to 4,638 units in March 2021 quarter, posting an increase of 13 per cent, according to a statement of Daimler Truck AG.

In January-March 2022 period, M&HCV industry wholesale volumes (trucks) reported year-on-year growth of 17 per cent at 88,612 units (excluding DICV sales) as compared to 75,790 units in the year-ago quarter, primarily led by increased construction and infrastructure activities, according to the data of SIAM.

“There has been traction in sales in the HCV and tippers segment along with increasing replacement demand,” said a report of CARE Ratings.

DICV, the manufacturer of BharatBenz trucks and buses, ended the calendar year 2021 with a 48% growth in wholesales by selling 14,222 trucks, which is a little less than 2019 volumes of about 14,500 units. The company’s strong year was 2018 when the company sold about 22,530 units.

Given the recovery across categories of the M&HCV segment, the company is expected to post strong numbers in 2022.

“We have entered 2022 with great confidence and we expect this year to be even better than the last couple of years, without ruling out unexpected challenges. 2022 is also a significant year for us as we start a new decade in the Indian market with fresh thinking and out-of-the-box strategies for a new paradigm in mobility,” said Satyakam Arya, MD & CEO, Daimler India Commercial Vehicles.

Industry analysts project a positive growth outlook for the CV industry as the massive government spending on infrastructure development is expected to augur well for the industry to clock strong volumes.

“CV demand growth, particularly for medium and heavy commercial vehicles (MHCVs), is expected to be backed by replacement demand because of improved utilisation and profitability of fleet operators, and government spending on infrastructure. Light CVs will be propelled by a surge in e-commerce and better last-mile connectivity, while demand for buses will be driven by the gradual reopening of schools and offices, and the easing of mobility restrictions,” said Pushan Sharma, Director, CRISIL Research.

Amid significant supply chain headwinds, rising input costs and the impact of the pandemic, DICV recorded 125% growth in exports in 2021, its highest-ever, and also highest-ever sales of parts.

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