Tata Motors expects commercial vehicle industry sales to grow in double digits in the current financial year despite hike in interest rates on vehicle loans.
Girish Wagh, Executive Director, Tata Motors, said that the commercial vehicle industry is gaining momentum due to factors such as investment by the government in infrastructure, gradually increasing consumption in the country and strong growth in sectors like e-commerce. These factors weigh heavily on the high inflation and increased interest rates, he said.
The actual demand will be based on the net result of favorable and unfavorable factors, he said. In this inflation and interest rates are adverse factors. Citing favorable factors, Wagh said investment by the government in infrastructure, gradually increasing consumption in the country and end-use sectors like e-commerce are also showing strong growth.
He also said that rising freight rates are also giving a positive sign and the Transporter Confidence Index is also increasing continuously. He said, “It seems that the industry can register double digit growth this year by combining the unfavorable and favorable factors. We should expect double digit growth in the commercial vehicle industry during the current year.”