Bharat Forge shares drop 5% amid poor Class-8 truck orders in North America

Bharat Forge Ltd. stocks are trading down more than 5% on Monday (August 5) following the latest round of Class 8 Truck orders in North America.

In July, Class 8 truck orders in North America reached 12,400 units, a 15-month low. These orders represented a 5% decrease from June and an 8% decrease from the previous year.

Class 8 truck orders in North America have decreased year over year for the second time this year. This is also the fifth straight month in which Class 8 truck orders in North America have been below 20,000 units.

As per a statement from FTR Transport Intelligence, “OEMs experienced a somewhat mixed market this month with vocational markets mildly underperforming conventional, but the overall picture was steady. Despite stagnant freight markets, fleets continue to invest in new equipment, albeit at a slowing pace. Year-to-date order levels are just marginally below historical averages and seasonal expectations, and the market fundamentals remain relatively consistent based on these preliminary orders. We expect to see further reductions in backlogs once the final Class 8 market indicators are released later this month as well as continued growth in an already-record level of inventory. The pressure on OEMs to reduce build rates continues to grow.”

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