Auction of Coal Blocks to Drive The Sale of Tipper And Dump Trucks

The sale of Tipper trucks and Dump trucks are expected to rise further in the second half of this financial year as Coal India Ltd (CIL) is holding forward e-auction of coal blocks for power producers to meet the rising demand of the electricity in the country. CIL is the major producer of coal in India.

The heavy Tipper trucks and Dump trucks mainly in demand for coal mining and infrastructure projects, therefore all the major players of the country are expecting huge demand of such heavy vehicles mainly from these two sectors. Once the mining of other minerals begins, tipper sales may rise further in the future.

It is reported, Special forward e-auction of coal blocks for 2016-17 for phase III is being held this month. CIL has already prepared a roadmap to achieve the target of producing one billion tonne coal by 2020 and for this financial year, the target is set to produce 598.61 million tonnes of coal, last fiscal (2015-16), it had produced 538.75 million tonnes of coal.

The rising demand of the coal in the country, does not only show the requirement of the electricity, but it also indicates huge requirement of such heavy commercial trucks, which needed for loading and carrying the coal in massive number.

Various trucks manufacturers are coming up with new models and also working-on to expand its existing capacity of production to tap the coal sector. These truck makers are coming up with high-powered Tippers and Dump trucks that can get into deep coal mines to carry the coal.

Under the provisions of the Coal Mines (Special Provisions) Act, 2015, 75 coal mines (31 by way of auction and 44 by way of allotment) have been allocated so far. Mining operations have commenced and mine opening permission granted in 11 auctioned coal mines as on 20.07.2016, the government informed Parliament in recently concluded session.

Due to rising demand of heavy commercial vehicles in various sectors including Mines, Construction and Logistics, the sale of medium and heavy commercial vehicle (M&HCV) has been witnessing positive growth over the period of last one year, last fiscal (FY2015-16) M&HCV segment grew by 30% with sales of 302,373 units as compared to fiscal year (2014-15).

In the first four months (April-July) of current fiscal, 92379 units of M&HCV has been sold, during the same period in last financial year 85135 units were sold in the same segment. Society of Indian Automobile Manufactures (SIAM) said, M&HCVs has registered a growth at 14.49% during April-June period of 2016-17.

The recent sale data of M&HCVs indicate that commercial vehicles market has started reviving and as more coal mines and construction work begin, the heavy-duty Tipper and Dump trucks will get new heights in terms of sale. Manufacturers like Tata, AMW, Volvo, Eicher, Ashok Leyland, Scania, Daimler and other would get huge demand for their various products in commercial vehicle segment from mining and construction companies in coming months.

As CIL sets the target of one billion tonne of coal production over next five years, it shows the positive growth of heavy commercial vehicle, including Tipper and Dump trucks is here to stay for a long period, sell of both new and used Tipper and Dumper will see positive growth during this period.

Source: Information has been obtained from government’s release, SIAM, PTI and other media reports

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