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The sales of domestic commercial vehicles (CVs) could take longer to recover than expected, despite the improving macro-economic indicators such as index of industrial production (IIP), output of core industries and fuel consumption. This is primarily due to the spare capacities created in the system, driven by the peak sales achieved during FY18-19 and implementation of revised axle load norms coupled with reduced fleet utilisation, says a research note.
In the report, India Ratings and Research (Ind-Ra) says, Medium & heavy commercial vehicle (MHCV) sales could decline by 35%-45% year on year (yoy) in FY20-21, though light commercial vehicles (LCV) sales decline is likely to be contained within 20%-25% yoy. In FY21-22, the industry could see sales growth in double digits, especially due to the low base of FY20-21. Nevertheless, the industry could revive earlier if an assertive scrappage policy is introduced timely.
BW Businessworld
November Nirvana
The worst may be behind for the Indian auto industry due to the festive season offtake but the ecosystem needs to stabilise before demand can get back to pre-2018 levels
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The Indian Automotive sector has witnessed its worst nightmare since the financial meltdown of 2008. A prolonged slowdown in the economy over the past two years brought on by a severe liquidity crunch due to the crisis in the NBFC sector and reluctance of the banks to lend owing to a dramatic rise in bad loans, the impending migration to BS-VI emission norms and, f inally, the Covid-19 pandemic pulverised demand out of shape. And with the nationwide lockdown in April this year, sales turned zero!
Parliamentary panel recommends Franchise Protection Act for auto dealers Updated Dec 23, 2020 | 09:19 IST
The Federation of Automobile Dealers Associations (FADA) noted that a new Franchise Protection Act will create a level playing field between auto companies and dealerships. Parliamentary panel recommends Franchise Protection Act for auto dealers
Key Highlights
The act will aim to create a level playing field between OEMs and dealers
The Indian automobile industry has witnessed several companies winding up their operations here over the last few years. Brands like Chevrolet, Man Trucks, UM motorcycles, Harley-Davidson, etc. decided to wrap up India operations without communicating the same to the automobile dealerships, thereby leaving the dealers high and dry with their investments down the drain. To protect auto dealers from under such scenarios, the Parliamentary Standing Committee has recommended the government to formulate a new Franchise Pro
FADA welcomes PSC s recommendation for Franchise Protection Act for auto dealers financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.