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India is buying trucks. But that is partially good news for Tata, Ashok Leyland.

Vehicles are seen during a traffic jam at Yamuna Bridge in Allahabad


The current commercial vehicle upcycle, likely to be only at its mid-term, has some disappointing aspects. Poor profitability records and rising cost pressure are just a few of the pitfalls. Also, what if India’s growth story comes under pressure and investors get edgy and ignore that it is too early for the commercial vehicle upcycle to end.

Trucks are a mainstay of the transport sector in India. They carry nearly two-thirds of all the goods in the country. As the economy was shrugging off the pandemic blues, sales of medium and heavy trucks that carry most of the goods/freight (by weight) saw strong demand in the last 18 months.Analysts are quite upbeat about the commercial-vehicle industry. They expect the commercial vehicle business of both Tata Motors and Ashok Leyland to

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