The steady fall in US Class 8 trucks orders bodes a slowdown in US commercial vehicle (CV) sales. Importantly, it signals a slowdown in growth for India’s component makers such as Bharat Forge Ltd and Motherson Sumi Systems Ltd.April data from America’s Commercial Transport (ACT) Research Co. shows a 57% year-on-year (y-o-y) drop in US Class 8 orders. This is the sixth consecutive month of sales drop, which began with a 14.5% y-o-y drop in November. Among them, Bharat Forge and Motherson have roughly 20% and about 8% of their revenue, respectively, accruing from this segment. Bharat Forge is down 17%, while Motherson has lost 14% in comparison to the Nifty 500 index that appreciated 5% from December till date.

Source: Mint May 06, 2019 13:18 UTC