Commercial vehicle sales in India may take longer to recover than expected: Ind-Ra
The light commercial vehicles (LCVs) segment has started to recover as they provide last mile connectivity and because of increased e-commerce activities but medium and heavy commercial vehicle (MHCV) sales are unlikely to recover before the fourth quarter of 2021-22, it said. PTI
Representative image
Commercial vehicle sales in India could take longer to recover than expected despite improving macro-economic indicators, according to India Ratings and Research (Ind-Ra).
The light commercial vehicles (LCVs) segment has started to recover as they provide last mile connectivity and because of increased e-commerce activities but medium and heavy commercial vehicle (MHCV) sales are unlikely to recover before the fourth quarter of 2021-22, it said.
BW Businessworld
Commercial Vehicle Sales In India May Take Longer To Recover Than Expected: Ind-Ra
The ratings agency reiterated that MHCV sales could decline by 35-45 per cent year-on-year (y-o-y) in FY21, though the decline in LCV sales is likely to be contained within 20-25 per cent.
Photo Credit :
Commercial vehicle sales in India could take longer to recover than expected despite improving macro-economic indicators, according to India Ratings and Research (Ind-Ra).
The light commercial vehicles (LCVs) segment has started to recover as they provide last mile connectivity and because of increased e-commerce activities but medium and heavy commercial vehicle (MHCV) sales are unlikely to recover before the fourth quarter of 2021-22, it said.
0
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
Photo Credit :
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!