Commercial Vehicles (CV) domestic sales continued its strong growth momentum in June 2018 with 38,560 units, an increase of 50% yoy compared to 25,660 units last year. Post the Supreme Court ruling on BSIII to BSIV transition, sales were affected last year as there was huge pre-buy and also a limited supply of BSIV vehicles. As per the company, the continued growth in June 2018 was on the back of the economy continuing to show an uptick due to the improved industrial activity, robust demand in private consumption and government spending on infrastructure.
The M&HCV truck segment registered growth of 50% yoy over June 2017. Demand for the MHCV trucks continued to be boosted by the government’s focus on infrastructure development, road construction, building of irrigation facilities and affordable housing projects across the country. Various sectors like auto carriers, 3PL players, cement, e-commerce, steel and oil tankers also drove growth. Additionally, one year of GST led to significant amount of rationalization of the warehouses with the focus on the hub and spoke model of distribution leading to faster turnaround time and giving a boost to the demand.
OPTION CALL: BUY TATAMOTORS 280 CALL ABOVE 9.00 TARGETS 10.20 / 11.70 / 13.50 STOPLOSS 7.00
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