November Class 8 Truck Orders: Forging Ahead
Shares of Bharat Forge and Ramkrishna Forgings gained in today’s session after Class 8 truck orders in the US rose to 52,600 units in November.
Orders were up 31% month-on-month and almost three times the level seen in November 2019, according to data from FTR Transport Intelligence.
The total orders in November were the third highest ever. Class 8 truck orders for the last 12 months now stand at 2.5 lakh units.
Consumer-oriented freight remains vibrant and industrial freight is expected to improve in the coming months. Fleets are placing big orders anticipating needing more trucks throughout next year.
The orders should begin to wind down in the next several months as the large fleets conclude their seasonal ordering.
Fleets are still trying to catch-up with the jump in freight volumes resulting from the economic restart and stimulus money spent on consumer goods and food. This will only intensify if there is a second round of payouts.
Bharat Forge, in November, said that the US truck market recovery surprised them positively, which should lead to a strong pick-up in the next few quarters.
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