Infrastructure, construction, irrigation and mining activities in the country led to the sales of Tipper Trucks during first five months of FY 2016-17. As we are aware, the sale of Tippers directly depends on the growth of these sectors, which usually drive the demand of Tippers in India.
The sales of Tippers had stranded in the last few years as both infrastructure and mining activities contracted in the country due to economic slowdown. As the government took various initiatives to resume stalled projects and increased infrastructure and mining activities, it led to the demand Tippers from the beginning of this financial year.
As per the data of the Society of Indian Automobile Manufacturers, in M&HCV segment, the Tipper trucks grew by 40% during April-August 2016. It indicates the activities in infra, construction and mining sectors have driven the sale of the Tippers during the period.
Tata Motors which is the market leader in Tipper Trucks segment with a 51% market share has sold 10,000 units of Tippers out of total Tipper trucks sold (19,000 units) during April-August 2016. During the period, Tata Motors’s Tipper account one-fourth of its total M&HCV sales, reported The Tribune.
The Tribune quoted Mr. Rajesh Kaul from Tata Motors as saying that his company is focusing on Tipper Trucks, as sales of Tipper grew 40% due to activities in infrastructure, construction, mining and manufacturing sector.
Tipper Truck manufacturers believe, Post-monsoon the infrastructure, construction and mining activities will accelerate further, which effect positively on Tipper market. Ashok Leyland which is one of the makers of Tipper Trucks told Business Standard, the company is expecting a further pickup in Tippers demand after the monsoon.
The road ahead for Tippers segment seem very bright, in this fiscal itself, NHAI planned to award 97 highway projects worth Rs 1 lakh covering the area of 6,631 km and set a target to award works worth Rs 7 lakh crore in the next five years to develop National Highways of around 50,000 km.
The various infrastructure projects like Metro rails in various Indian cities, construction of various proposed international and domestic airports like Navi Mumbai International airports, urban development under ‘Smart Cities’ mission and expansion and development of railway infrastructure and other would require a huge number of Tipper Trucks.
Coal India Ltd (CIL) is set to produce 598.61 million tonnes of coal in this financial year and having a target of producing one billion tonne of coal production over next five years, it shows the positive growth in Tipper Trucks, as Tipper Truck is the majorly used for mining.
The allocation of mineral blocks in various mineral rich states would also drive further growth in Tippers segment.
Source: Information has been obtained from Business Standard, The Tribune and other media reports