Aided by higher budgetary allocation towards infrastructure and rural sectors, and the potential implementation of scrappage program, the CV industry, claim industry sources, will witness six to eight per cent growth in FY2017-18. Sources stress on a rise in replacement demand due to the two developments mentioned above. As of current, CV OEMs are estimated to have an inventory of approximately 74,000 units. Experts at ICRA claim that tipper segment has been the primary growth driver in the M&HCV (Truck) segment, which witnessed a growth of 31 per cent (till the nine months of FY2016-17) on back of strong demand from both construction as well as mining segment. Sales of CV OEMs have been below expectation primarily because of subdued optimism among fleet operators. This has led to an increase in system wide inventory levels well beyond the average monthly sales. If this poses a question regarding the inventory of BSIII emission compliant vehicles, LCVs, in contrast to M&HCV (Trucks), registered a healthy growth in volumes (up 7.2 per cent in 11 months of FY 2015-16) on back of low-base effect and improving demand for SCVs aided by pick-up in consumption driven sectors. The domestic CV segment is expected to register a growth of 6-8 per cent in FY 2017-18 according to ICRA experts. CV exports are expected to grow by 8-10 per cent in FY 2017-18.