Bharat Forge, Ramkrishna Forgings, Motherson Sumi Systems and GNA Axles the major companies that export in the North American truck market, are expected to see a rise in income as a result of the recent boom in sales of Class 8 trucks.

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After seeing a dip in the month of July, when net orders fell to their lowest level since November 2021 at 10,600 units, sales of Class 8 truck orders have seen a boom in August. The net orders stand at 21,400 units, a five-month high and have doubled from the numbers in July,

Although there is still a dip of 46 percent in the numbers from the corresponding period last year, the auto component companies are very positive about the market in North America.

“We feel that the market is pretty strong in North America. And it's going to continue into the next year,” Naresh Jalan, MD of Ramkrishna Forgings told CNBC-TV18.

He further added that with strong demand from the US, this year the company should do at least 15-20 percent higher in terms of export than in the financial year 2022.

The rise in August sales comes as a big relief as the numbers have been stagnant from January to March and then had further started declining, as according to FTR, OEMs had essentially run out of build slots for 2022 and were not yet entering orders for 2023.

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The continued supply chain disruptions were also limiting OEM output in 2022 and the fluctuating cost of materials and components caused delays in confirming orders for shipment next year. In the year so far, Class 8 orders have come in at a cumulative 139,900 units.

Bharat Forge is also expected to benefit from the surge in net orders. Despite underperforming in the US Class 8 segment, the company has been doing well overall, with some help from the domestic market.

“Even if you assume a slowdown in US Class 8, I think its other categories will help offset the slowdown in US Class 8,” Aniket Mhatre, Institutional Research Analyst-Auto, HDFC Securities told CNBC-TV18. Now with the surge in numbers of Class 8 sales, the company can be expected to benefit more.

Similarly, GNA Axles is also expecting a double-digit growth within the next 18 months from the North American truck market, the company said in its annual report for 2021-22.

“Around 55 to 60 percent of our revenue comes from exports and North America exports constitute around 30 to 35 percent of our total sales revenue, at the current level overall sales are expected to grow 15 to 20 percent for the financial year 2023,” said Ranbir Singh, Managing Director and Chief Executive Officer at GNA Axles.

Shares of Bharat Forge and GNS Axels closed green on the BSE on September 5, surging 0.1 and 2.8 percent, respectively, while Ramkrishna Forgings and Motherson Sumi Systems closed red declining at 0.7 percent and 0.3 percent, respectively.

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(Edited by : Shoma Bhattacharjee)