Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • Nepal protests
  • Nepal Protests Live
  • Vice-presidential elections
  • iPhone 17
  • IND vs PAK cricket
  • Israel-Hamas war
fp-logo
Commercial vehicle sales to remain subdued in current fiscal amid tight financing environment: ICRA
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Business
  • Commercial vehicle sales to remain subdued in current fiscal amid tight financing environment: ICRA

Commercial vehicle sales to remain subdued in current fiscal amid tight financing environment: ICRA

Press Trust of India • October 7, 2019, 15:34:04 IST
Whatsapp Facebook Twitter

Rating agency ICRA on Monday said its outlook for the domestic commercial vehicle industry remains negative for the rest of the fiscal due to subdued sales amid slowing economic growth and tight financing environment

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
Commercial vehicle sales to remain subdued in current fiscal amid tight financing environment: ICRA

New Delhi: Rating agency ICRA on Monday said its outlook for the domestic commercial vehicle industry remains negative for the rest of the fiscal due to subdued sales amid slowing economic growth and tight financing environment. The rating agency believes that demand headwinds would continue in the near-term with the likelihood of limited pre-buying ahead of the roll-out of BS-VI emission norms. “Given the high inventory levels at dealerships and subdued retail sales, original equipment manufacturers (OEMs) are focusing on rationalising the inventory in the system prior to the roll-out of new emission norms, which would render unsold inventory of existing BS-IV vehicles as obsolete,” ICRA Ratings Vice President Shamsher Dewan said in a statement. Hence, wholesales dispatches are not expected to increase materially over the latter half of the fiscal, he pointed out. [caption id=“attachment_3107288” align=“alignleft” width=“380”]Representational image. PTI Representational image. PTI[/caption] Domestic commercial vehicle (CV) industry volumes are likely to contract by 10-12 percent during the current fiscal which, coupled with an elevated level of discounts offered by OEMs, will exert pressure on earnings and credit metrics of OEMs in the near-term, he added. The slowdown in the domestic commercial vehicle industry, which started in the second half of FY2019, has accentuated during the current fiscal with volumes contracting by a sharp 19 percent during April-August 2019 on a year-on-year basis. The volume contraction has worsened as the year progressed with CV OEMs cutting down on their wholesale dispatches by 33 percent during July-August period of this year to pare down inventory levels at dealerships in light of subdued footfalls and retail sales. As per early sales data released by key listed CV OEMs, the situation has further worsened in September 2019 with volumes halving over the year-ago period, ICRA said. The slowdown has been sharp in the medium and heavy commercial vehicle (M&HCV truck) segment, wherein volumes contracted by 32 percent during the current fiscal so far. “The M&HCV (truck) segment has been impacted by the double-whammy of excess capacity along with subdued freight availability, which has suppressed freight rates and kept the profitability of fleet operators under pressure,” Dewan noted. Coupled with tight liquidity in the non-banking financial company (NBFC) space, and expectations of a GST rate cut, fleet operators had deferred their vehicle purchases in the current scenario, he added. The overall slowdown in automobile sales, in general, has led to a sharp reduction in demand for car carriers, while delayed payments to contractors and the resultant slowdown in infrastructure project execution, has also put brakes on tipper sales, ICRA said. Even the LCV (truck) segment, which was relatively insulated from the impact of revised axle load norms has been impacted over recent months with the weakness in consumption-oriented sectors and subdued rural demand sentiment, it added.

Tags
NewsTracker Icra Slowdown Commercial Vehicles Automobile auto sector CV auto industry trucks auto sector slowdown medium and heavy commercial vehicle
End of Article
Latest News
Find us on YouTube
Subscribe
End of Article

Impact Shorts

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

The Tata Harrier EV and Mahindra XEV 9e are new electric SUVs in India. The Harrier EV has a modern, familiar design, while the XEV 9e features a bold, striking look. They cater to different preferences: the Harrier EV for subtle elegance and the XEV 9e for expressive ruggedness.

More Impact Shorts

Top Stories

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV