Commercial Vehicles Sector Check - Still A Few Bumps On The Road To Recovery: Systematix
Vehicles travel along a road near residential high-rise towers in the Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Commercial Vehicles Sector Check - Still A Few Bumps On The Road To Recovery: Systematix

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

We hosted a diverse set of stakeholders of the commercial vehicle industry as part of our channel check series.

Key takeaways are:

  1. while fleet utilisation has picked up to ~70% post lockdown 2.0, medium and heavy commercial vehicle demand recovery (especially for buses and haulage trucks) is still at a nascent stage given the skepticism over sustained improvement in economic activity and the sharp increase in BS-VI vehicle prices;

  2. overall fleet profitability is under stress owing to lower utilisation levels YoY even as per trip economics have improved;

  3. large fleet operators are looking to sweat trucks for a longer period before re-investing while small/single fleet owners (the worst impacted) are inactive.

Click on the attachment to read the full report:

Systematix Commercial Vehicle Sector Update.pdf

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