(Image Source: Tata Motors)
While the pandemic has devastated the Commercial Vehicle(CV) market, the worst is already behind us. With Electric Vehicles (EV) for last-mile deliveries back in demand, Tata Motors will introduce its product for this segment very soon. The team has been working with some end-users including e-commerce companies to better understand their needs.
Meanwhile, other competitors such as Ashok Leyland are also planning on launching their EV offerings by the end of December. This increase in CV demand is due to the improved availability of CNG and the significant rise in diesel price, especially for the segments between 6 to 15 tonnes.
“There is a dying need for CNG vehicles. If a vehicle is plying in an area where CNG availability is not an issue, people are moving to it in lock stock and barrel,” says Girish Wagh, Executive Director of CV Business Unit at Tata Motors.
Despite the positive signs of growth, overall fleet utilisation is still far behind its pre-pandemic levels. On a low base of the past two years, the market leader hopes for the market to reach the YoY growth of 20% this year.
According to Wagh, new customers are leading the recovery as there is only a modest number of demand from replacing diesel vehicles. Retail buyers, on the other hand, are still wary of new purchases. Lastly, financial institutions play a more important role now than ever, given that 95% of vehicles are being bought on credit.