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Preliminary class 8 truck orders in North America reached a record high on a monthly basis, according to data from ACT research. Orders in September doubled from last year to 56,500 units. On a month-on-month basis, the growth was 164 percent.

The class 8 market is segmented into trucks and tractors, with or without sleeper cabs or truck sleeper compartment attachments.

Over the past 12 months, 249,000 class 8 orders have been booked, ACT research said. The report attributed the strong growth to original equipment manufacturers (OEMs) opening their order boards for 2023 earlier than normal. May to September is generally considered to be a weak period for truck orders.

Shares of Bharat Forge gained 5.5 percent in opening trade, while those of GNA Axles and RK Forgings gained 3 percent and 1.5 percent, respectively. The companies are seen as key beneficiaries for higher class 8 truck orders.

September is seen as a month when manufacturers begin to build slots for the next calendar year, and large orders are generally received in October and November.

FTR Transport Intelligence attributed the sharp surge in orders to a "tremendous level of pent-up demand", adding that build rates continue to be impacted by component shortages as suppliers face supply-side issues and shortage of labour. The firm also expects replacement demand to remain elevated in 2023 as aged equipment has not been fully phased out over the last two years due to the limited availability of new equipment fleet.

For the calendar year 2022, 196,000 class 8 orders have been booked. Total truck sales for the year are expected at 244,000. Based on the projections, another 48,000 class 8 trucks will have to be sold to meet the full-year target.

In its annual report for FY22, Bharat Forge mentioned that the commercial vehicles market in the US and Europe, though slower, continues to remain robust for the next two years with healthy order backlogs. The report further states that most OEMs have their slots booked for the next 12 to 15 months.

First Published:Oct 6, 2022 10:07 AM IST