Bharat Forge Shares in Spotlight as North American Truck Orders Plunge by a Third

3 Apr 2024 , 12:39 PM

Bharat Forge’s shares attract attention as Class 8 truck orders in North America decline by a third compared to February.

March saw Class 8 truck orders in North America drop to 17,300 units from 19,000 units last year, with February recording 25,700 units. This reflects a 9% year-on-year decrease and a 33% decline from February.

This marks the first time since August 2023 that truck orders have fallen below the 20,000 units mark and the fourth consecutive month of decline on a month-on-month basis.

Steve Tam, ACT’s Vice President and Analyst, attributes the subdued Class 8 order activity in March to tentative improvements in the freight market and efforts by certain OEMs to stabilize demand, amid cautiousness among truck buyers.

Bharat Forge, known for defense-to-auto components, has a presence in the North American class 8 truck market.

Bharat Forge’s Chairman Baba Kalyani mentioned in a CNBC-TV18 interview in November last year about witnessing significant improvements in North American truck orders, indicating the company’s transition from components to products.

Bharat Forge’s shares were trading 1.7% lower at ₹1,135.65 at the time of writing, marking a 50% increase over the past 12 months.

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