Commercial Vehicle manufacturers are said to be chalking out cumulative investments in the region of Rs.5,000 crores over the next two years on the basis of a positive outlook. Apart from the migration of products to meet BSVI emission norms, the investments are expected to be directed towards the development of new products that will address tonnage shift and changing market requirements. With OEMs like Tata Motors, Ashok Leyland and VECV developing new multi-axle rigid trucks in the 40 to 43-tonnes category, which is looked upon as the next big development, the CV industry, according to Shamsher Dewan, Vice-President, ICRA, will likely limit capex except for setting up of or to upgrade bus body infra. A big chunk of the investment said to be channelled towards technology development, Tata Motors, which made a strong turnaround in medium and heavy commercial vehicle segment in FY2017-18, is said to be planning to invest Rs.3,000 crores over the next two years in new product platforms and debottlenecking. Ashok Leyland is claimed to have earmarked an investment of Rs.1,000 crores over the next two years to debottleneck and develop new products. VECV’s Rs.500 crores investment is said to be aimed at applying higher thrust in HCV segments.

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