Indian Commercial Vehicle Industry Post Covid
The Indian Commercial Vehicle industry, after a steep decline due to GST, axle load norms, and rising fuel costs, is rebounding. Growth is driven by e-commerce, infrastructure projects, scrappage policy, and emerging trends in electrification and telematics.
Indian Commercial Vehicle Industry Post COVID Era:
The Indian CV industry is facing some of its worst times in last 4 to 5 years. The overall CV volumes (Trucks & Buses) in F19 was 7,17,688 Units & the sales for the same for F20 was 5,23,329 units which is a dip of 25~27%.
The reasons for the same are:
- GST implementation-reducing the waiting times are octroi posts which have vanished since and higher vehicle prices
- Axle Load Norm: with around 10% overload capacity, overall fleet capacity has increased by about 20% in the market thereby reducing the demand for new vehicles
- Increasing diesel prices in Delhi from 50.22 INR per litre in July 2015 to 79.95 INR per litre as on 17th Feb 2021, while keeping the freight rates almost unchanged
- Competition from other modes of transportation like Railways (upto 110 rakes, double decker bogies and RoadRailer a bimodal vehicle capable of running on rails as a wagon and on road as semi-trailer truck) and RO-RO services using water transport
The expected growth of CV industry in F22 is around 25~28% and likely to continue for next 2 years due to:
- Cyclicity of industry
- Sunrise sectors like e-commerce driving the …
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