CV sales to grow 6-7% in FY18 on back of pent-up demand after GST: ICRA
Domestic commercial vehicle (CV) sales are expected to grow by around 7 per cent in the current fiscal on the back of pent-up demand post GST and replacement cycle in CVs driving the sales, as per rating agency ICRA. The CV sales remained on the slow lane prior to July during the first quarter due to various reasons including pre- buying in fourth quarter of last fiscal and fleet operators deferring new vehicle purchases in view of incoming GST regulation from July 2017. As a result of these factors, the domestic CV sales contracted by 9.1 per cent during the first quarter with M&HCV (Truck) sales being impacted the most. "The industry will find its momentum back aided by increased thrust on infrastructure and rural sectors in the recent budget, potential implementation of fleet modernisation and higher demand from consumption-driven sectors," ICRA Senior Group Vice-President Corporate Sector ratings Subrata Ray said. There has also been considerable improvement in ..05-11-2017