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BS-IV, GST led to fall in Q1 commercial vehicle sales, says Icra

M&HCV (truck) and bus sales collapsed by 33% and 23%, respectively during the quarter, says Icra

IANS  |  New Delhi 

Illustration: Binay Sinha
Illustration: Binay Sinha

 

Ratings agency on Monday said that multiple factors have led to the nine per cent decline in the domestic commercial vehicle (CV) sales for the first quarter (Q1) 2017-18.

"This was triggered by combination of factors including pre-buying (in Q4 FY2017 ahead of the BS-IV roll-out), deferment by fleet operators before roll-out and supply disruptions because of limited availability of components for BS-IV vehicles," the ratings agency said in a statement.

"As a result, the (truck) and bus sales collapsed by 33 per cent and 23 per cent, respectively during the quarter."

According to Subrata Ray, Senior Group Vice President, ICRA, sales momentum will be achieved back due to an increased thrust on infrastructure and rural sectors in the recent budget and potential implementation of fleet modernisation or scrappage programme.

Ray pointed out that even the higher demand from consumption-driven sectors, especially for (light commercial vehicles) and intermediate commercial vehicles (ICVs) will give a boost to CV sales.

In addition, the ratings agency predicted that domestic CV industry is likely to register a growth of 6-8 per cent in FY2018.

First Published: Tue, July 18 2017. 00:01 IST
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