Bharat Forge shares were trading in the green and 3% higher on 4 June after North America Class 8 truck orders grew for the first time on a month-on-month basis after November 2023.

In May, class 8 truck orders in North America climbed to 18,900 units, up 39% year-on-year and 35% month-on-month.

Data from last month shows that orders for Class 8 trucks in North America dropped to 14,000 units in April, the lowest level since July 2023, an 18% month-over-month decline. For the fifth month in a row, fewer orders were placed. In April this year, 18,200 class 8 trucks were ordered in North America.

Furthermore, for the first time since August 2023, class 8 truck orders dropped below 20,000 units in March; nevertheless, they have now maintained this level for three months running in May.

Steve Tam, ACT’s vice president and analyst, said, “Market observers may recall that demand typically slows in the second quarter. However, surprises are always lurking. Class 8 preliminary order intake provided May’s drama, effectively zigging when they were expected to zag.”

As far as he was concerned, the third and fourth quarters’ glut of open construction slots and OEMs’ desire to find some kind of balance with the impending pre-buy likely had an effect on May’s order activity.

Tam added, “While we do not have complete visibility at this point, the strength is presumably driven by private and vocational fleets, supplemented by an ongoing healthy appetite for equipment in Mexico.”

ACT Research is a well-known source of market analysis, forecasts, and data about the commercial vehicle truck, trailer, and bus sectors in China and North America.

Bharat Forge is a manufacturer of defence-to-auto components and is serving class 8 truck sales in North America.

In November of last year, Baba Kalyani, the chairman of Bharat Forge, announced that the company was undergoing a major change, moving from components to products and noticed a notable improvement in truck orders in North America.

At 1:17 pm, the shares of Bharat Forge were trading 1.54% higher at Rs 1,468.45 on NSE.