Commercial Vehicle (CV) Sales Analysis April-17
The Supreme Court’s verdict on 29th March which reiterated the decision to ban sale of BS-III vehicles from 1st April had a detrimental affect on the commercial vehicle segment as expected. It is clearly visible on the sales numbers of the Commercial Vehicle manufacturers. The OEMs could not meet the higher demand in short notice as the vendors struggled to meet the higher demand in the M&HCV segment. Further there was a strong prebuying of BS III vehicles in March as the prices were expected to increase in the M&HCV & Bus segment by 8-10%.
April-June 17 Quarter is forecasted to be slow though growth would likely pick up in July with the GST in place.
Growth drivers
April-June 17 Quarter is forecasted to be slow though growth would likely pick up in July with the GST in place.
Growth drivers
- The GDP forecast is 7.2% by IMF
- The Monsoon is expected to be normal driving up the rural economy.
- Higher budgetary allocation by GOI towards infrastructure and rural sector.
- Rapid Growth in e-Commerce would increase the demand for transportation.
- Smart City initiatives would increase demand for buses,
- Increase in export to Middle-Eastern and African countries.
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