Tata Motors’ sales hit a roadblock in May. Ashok Leyland Ltd, the second largest truck and bus maker, reported a 7.9% drop in sales in overall M&HCV sales, too. However, a note by Reliance Securities on the sales numbers for August says that replacement demand, which was robust a few quarters ago after the long lull in truck sales, has tapered off. Meanwhile, the inadequate rise in freight rates and a slow pick-up in construction activity, along with a high FY16 base, has kept truck sales subdued. This may weigh down on truck sales, unless there is a post-monsoon revival in economic activity.

Source: Mint September 04, 2016 14:48 UTC