Bosch India MD Soumitra Bhattacharya on Friday said that he expects the heavy commercial vehicles (HCV) segment to start seeing recovery only by the end of the current financial year while a comeback is expected only in FY22.
"We expect HCV to come back in 2021-22, but 2021 likely to be anywhere between one fourth, at best a little better than that, of the peak levels of what we saw in 2018-19,” he said in an interview with CNBC-TV18.
Bosch posted a weak set of first-quarter results, reporting a net loss of a little over Rs 120 crore. However, the company is looking to foray into the two-wheeler business.
Bhattacharya said that the supply side issues are now completely sorted. “On the supply side, I think the glitches that we had for a short while -- and that was mainly due to COVID -- have been completely sorted out and the entire industry and all our customers are getting what they need,” he said.
On the heavy commercial vehicles (HCV), Bhattacharya continues to see challenges. “Relative to the way other segments are picking up -- highest being tractor followed by passenger cars for the festive season and two-wheeler for individual affordable transportation -- HCV is lagging behind,” he said.
On the restructuring process, he said, “We started our transformation journey nearly 2.5 years ago and the transformation journey was on the 3 'R's – restructuring, reskill, and redeployment. We gave equal focus on all of them and this is under a program called ‘Fit for Future’ which has an umbrella mother program for us called ‘Lakshya’.”
“We have a very clean balance sheet, a zero debt company, we have our cash reserves intact, and we are rearing to go where we see ourselves -- that we will come back at the same peak levels one year before industry does,” he added.