While the spread of coronavirus is undeniably quite unfortunate for the whole world, the agriculture industry is still doing great wonders. Rural India is witnessing a stronger cash flow than in the cities. The foodgrain production is convincingly good if we consider the lockdown situations, and the resultant high tractor sales are adding to the better prospects in rural India.
Not just tractor sales are increasing in rural India, but the demand for cargo carriers is expected to see a good hike too. One of India’s biggest truck manufacture companies, Ashok Leyland, is planning to bet big on the rural infrastructure and building demand for cargo carriers. While the demand for cargo carriers has seen a decline because of the adoption of new emission norms but seeing the growth of the agriculture industry, there are chances of great miracles happening for the cargo carrier segment too.
Seeking great avenues in the rural infrastructure, the CEO of Ashok Leyland, Vipin Sondhi says, “One of our recommendations to the government is to allocate a sizable sum from national infrastructure pipeline projects in rural India. That will get the industry into a virtuous cycle. We are seeing utilization going up. How long would it take for things to revive, we will have to wait and watch. Things will improve quarter by quarter.”
The bumper production of Kharif crops and the decent sales of urea is giving the hints that the rural economy is about to burgeon. Ashok Leyland said that there are signs of growth as yet, but there is some movement of construction equipment in the rural areas, which is an indication in the resumption of activities.
Ashok Leyland is continuously looking towards growth. Last week, the company introduced its new-generation products based on a modular platform aimed at offering higher value to the consumers despite zero sales for almost 45-60 days. They say, “The importance is to be there, with the right product at the right time, so that when the demand is triggered, we are right there."
