With CV major Ashok Leyland announcing a 28 per cent jump in profits to Rs.1563 crores in FY2017-18, the backdrop of higher spending on infrastructure and demand in the replacement market is expected to provide the CV industry with a big boost in FY2018-19, claim industry sources. They mention that the industry will clock a growth of much higher than 20 per cent in FY2017-18 as the shift to higher tonnage CV continues. Stating that the CV industry grew at over 20 per cent in FY2018-19 despite the effect of demonetisation and GST, sources mention that goods carrier segments will continue to outperform in the current fiscal. Terming the act of CV makers to introduce rigid (10×2) trucks in the 41 to 43-tonnes segment, they are of the opinion that India is a unique market as far as CVs are concerned. To think of buyers opting for a 43-tonne rigid truck over a 40-tonne tractor is indeed weird, and reflective of how the market continues to evolve mentioned an industry leader. He commented that it will take time for the tractor-trailer market to evolve in-line with the changes in GST and development of infrastructure as well as new application areas. With rising fuel prices expected to reflect on freight rates, operating efficiency is something that the fleet operators are going to be paying more attention to, at least until the oils are not brought under GST or the prices lowered to a comfortable level. A significant sales boost, sources expect to come from some amount of pre-buying as 2020 will mark the advent of BSVI with a considerable increase in prices.

Leave a Reply

Your email address will not be published. Required fields are marked *

     

*