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Eicher Motors expects better traction July onwards

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Eicher Motors reported a recovery in sales in June 2021. Vinod Aggarwal, MD and CEO-VECV of Eicher Motors, shared his views on its sustainability.

Eicher Motors reported a recovery in sales in June 2021. Vinod Aggarwal, MD and CEO-VECV of Eicher Motors, shared his views on its sustainability.
According to him, June sales numbers were better than May but much less than the expectations.
“The sales didn’t pick up much, the industry was much lower. Q1FY22 was not so good for the commercial vehicle (CV) industry. However, going forward, July onwards we should see better traction,” he said.
On demand, he shared, “Supply we are still able to manage, right now it is the demand problem. We are very optimistic that the demand will improve because if the economy is going up, demand has to improve.”
The Indian Foundation of Transport and Research and Training (IFTRT) indicated that truck rentals have seen a 13-15 percent surge in June due to the pick-up in the economy.
“Truck rentals are much lower as compared to the inflation that has happened in fuel prices. If the transport industry has to remain prosperous and not become sick, the rentals have to go up further,” he stated.
Some softening in steel prices has been happening based on the increase in production in China.
“However, we are still keeping our fingers crossed because there’s still a lot of pressure from steel mills to increase prices. So, the prices have gone up significantly and there are still pending demand from the steel mills to increase further prices. So right now, the situation is not so good as far as the inflation is concerned,” he shared.
Aggarwal believes export numbers are doing relatively better but still they are much lower. “Last year, total exports out of the country for the industry was around 27,000, at peak, it was 65,000. This year Q1FY22 exports have been around 7,500. So, export numbers are better but still much lesser than the normal period,” he explained.
For the full interview, watch the accompanying video.
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