Telco to focus more on tractor-trailers

Mumbai: Foreseeing a shift towards the tractor-trailer segment in heavy commercial vehicles in the next few years, Telco has decided to enhance its position in it. At present, its market share in this high-end area of commercial vehicles is less than 50 per cent.

To further increase the same, the company has decided to roll out new products in this category through the support of a UK-based consultant, Warwick Manufacturing Group. Telco already has a strong presence in the multi-axle vehicle segment, but sees the demand shifting to tractor-trailers.

The tractor-trailer segment has Ashok Leyland and Volvo India as other strong players besides Telco, where it manufactures only 5,000 units every year. Tractor-trailers are more reliable, more durable and more fuel-efficient in comparison to multi-axle vehicles, the demand for which is expected to pick up in the wake of the Golden Quadrilateral (GQ) project, which envisages linking the East-West and the North-South corridors.

In addition to tractor-trailers, Telco is also working on several other heavy-duty vehicles of the likes of 44-tonner and 49-tonner vehicles. Analysts say the GQ project has already resulted in better demand for light-commercial vehicles as well, with a sale of 16-tonne vehicles showing a distinct increase in the last six weeks.

Demand from heavy commercial vehicles, too, have gone up, as their overall operating costs are cheaper in comparison to light commercial vehicles. The demand for specialised construction equipment such as tippers and dumpers, too, has gone up on the back of the GQ project.

In October, at 7,021 units, Telco reported an 11.1-per cent growth in sales in volume terms. In the period between April and October 2001, production of commercial vehicles rose 7 per cent. Reflecting the buoyancy in demand, and therefore sales, the Telco stock of late has been growing on the markets, with buyers outnumbering sellers.