As industrial activities resume with the fast-paced reopening of the global economy, demand for commercial trucks for interstate transportation has been rising. Consequently, prominent commercial truck manufacturers AB Volvo (VLVLY (OTC:VLVLY)), Cummins (CMI) and PACCAR (PCAR) should witness solid growth in the near term. So, we think it could be smart to bet on these stocks now.Reviving industrial activities with the recovery of the global economy are driving increased demand for interstate cargo transportation, which in turn is heightening the demand for commercial trucks.
Noteworthy progress in COVID-19 vaccination programs worldwide, and favorable fiscal and monetary policies, should boost the demand further. Moreover, the rising popularity of electric vehicles (EVs) and substantial government incentives to encourage growth in the sector have led to increased production of electric commercial trucks. According to Adroit Market Research, the global heavy-duty trucks market size is expected to grow to $225.9 billion in 2025.
Given this backdrop, we think the shares of prominent commercial truck manufacturers Volvo ADR (VLVLY), Cummins Inc . (NYSE:CMI) and PACCAR Inc (NASDAQ:PCAR) should deliver significant returns.