CV sales still in the slow lane: Numbers down by 56 percent
27 Dec 2020
With easing of the lockdown, while passenger vehicle (PV) and two-wheeler sales started picking up, sales of commercial vehicles (CV) are still dampened. As per H1FY21 data by the Society of Indian Automobile Manufacturers (Siam), while PV sales were down 34% and those of two-wheelers 38.28%, CV sales were down by 56.01% on a year-on-year basis. In fact, in September 2020, even as PV and two-wheeler sales grew 17.02% and 0.17%, respectively, CV sales declined by 20.13%. However, both analysts and automakers believe that with economic activity picking up pace and with expected GDP growth in Q3 and Q4, the CV turnaround could be round the corner, albeit in varying degrees in different CV sub-segments, such as M&HCVs (medium and heavy commercial vehicles), LCVs (light commercial vehicles), pick-ups, buses, etc.
CV registrations tend to follow GDP growth, and over the last two decades CVs have typically grown at a rate marginally higher than GDP growth on a CAGR basis, despite witnessing a couple of cyclical downtrends, said an auto analyst. “CV sales have rebounded after every significant downturn, whether it was post the global financial crisis in FY09 or the FY14-15 slowdown in economic growth that was accompanied by restrictions on mining in a few states. The most recent headwinds that were already noticeable pre-Covid were due to excess freight capacity on account of improved turnaround time post-GST and the implementation of revised axle-load norms,” he said.

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