Tipper Truck

Though expanding business is increasingly becoming bumpy owing to lower growth in mining and construction sectors, an interesting demand trend is evolving in tipper trucks sector based on its large demand base that may dissuade the prevailing macro gloomy business sentiment among the haulage and dumping equipment manufacturers. P.P. Basistha reports.

Retrogression in mining and construction sectors in recent past has begun taking toll on business volumes for tipper truck manufacturers in the country. According to industry figures, demand has shrunk to 3,200-3,400 units per month in financial year 2012 from 4,600 units as compared to 2011 indicating ebb in demand. Though the net figures brings forth a bearish outlook for the short and mid-term growth of the segment, going by the spate of development across the demand driving sectors however, the surprise is the gross demand for 2011-12 stood at 62,000 units up from 48,000 units in 2010-11 allaying fears that the downslide was not inclusive and should not continue to be so at least in the midterm. But what could have been the reason for this steep northward surprising movement when the net demand is actually sinking? One needs to look beyond the dynamics of business that is driven by the known equation of supply and demand.

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