Excess truck fleet capacity to extend medium and heavy truck segment recovery cycle: India Ratings
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Excess truck fleet capacity to extend medium and heavy truck segment recovery cycle: India RatingsET Bureau
Last Updated: Dec 28, 2020, 12:45 PM IST
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The rating agency says while medium & heavy commercial vehicle (MHCV) sales are unlikely to recover before fourth quarter of next financial year, that of the light commercial vehicles (LCVs) have started to recover as they provide the last mile connectivity and because of increased e-commerce activities.
During April-September 2020, the CV sales volumes declined 56% yoy, with a steeper decline of 76% recorded in MHCVs, due to excess system capacity and lower fleet utilisation.
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5575 Automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers, said a trade body in the world’s fifth biggest auto market. - File photo
New Delhi, December 25
Automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers, said a trade body in the world’s fifth biggest auto market.
Shipping freight rates have surged since July and companies are now finding it “almost impossible to sustain normal trade operations”, said Rajesh Menon, director general at the Society of Indian Automobile Manufacturers.
The Indian auto industry is expected to see stronger growth in 2021-22, after recovering from the devastating effects of the COVID-19 pandemic, with electric vehicle sales, especially two-wheleers, also likely to see positive movements, according to Nomura Research Institute Consulting & Solutions India. However, in the personal vehicles segment, the levels reached in 2018-19 would be reached only in 2023-24, it added. In 2018-19, passenger vehicle sales rose 2.7 per cent to 33,77,436 units from 32,88,581 units in 2017-18, according to the Society of Indian Automobile Manufacturers (SIAM). After the devastating effects of the COVID-19 pandemic, it is expected that the auto industry will see stronger growth in 2021-22, Ashim Sharma, partner and group head (business performance improvement consulting-auto, engineering and logistics) at NRI Consulting & Solutions India, said.
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