Home >Industry >Infrastructure >Pickup in building activity pushes up demand for tippers
Government-backed infrastructure projects have led the demand. ( Bloomberg)
Government-backed infrastructure projects have led the demand. ( Bloomberg)

Pickup in building activity pushes up demand for tippers

The recovery in construction activities is led by infrastructure projects in the roads and highways sector across India

MUMBAI : Sales of tipper trucks, concrete mixers and other heavy vehicles have been growing following a pick up in construction activities, though demand for other medium and heavy commercial vehicles remains muted, executives of leading truck makers said.

The recovery in construction activities is led by infrastructure projects in the roads and highways sector across India. With the government clearing dues of contractors across states, most developers have resumed work, which has added to the momentum, the executives said. However, the medium and heavy commercial vehicles (MHCV) segment faces many challenges such as reduced freight movement and low freight rates.

The heavy commercial vehicle market is stressed, but some areas are picking up, Vipin Sondhi, managing director and chief executive officer of Ashok Leyland Ltd, said in an interview. “Demand for tippers has started picking up and it is improving for intermediate commercial vehicles also. In construction activities, tipper trucks play an important role and we see (a demand for) tippers in future," he said.

Investments in infrastructure will boost economic activity, which in turn will bring large trucks into play, Sondhi said. Ashok Leyland sold 2,132 MHCV units in August, down 36% year-on-year.

India’s largest truck manufacturer, Tata Motors Ltd, said that the construction sector has seen heightened activity in the post-lockdown phase after work for pending projects resumed and new projects were announced by state and central governments.

“The resurgence of construction activity on the back of the government’s push for completion of projects, has been one of the most important catalysts for the surge in demand for tipper trucks in the post lockdown phase," said a Tata Motors spokesperson.

Improved traction in the construction space, including fast-paced building of dedicated freight corridors, is driving recovery in the tipper category, according to Shamsher Dewan, vice president, corporate sector ratings, Icra Ltd.

“Construction equipment manufacturers are also recording a surge in demand for pick and carry cranes, backhoe loaders and other heavy machinery," Dewan said.

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