CV Segment to Grow at 13-17% Next Fiscal

Published: 26th January 2015 06:00 AM  |   Last Updated: 26th January 2015 03:34 AM   |  A+A-

BENGALURU: Hope for the struggling commercial vehicle (CV) category could come next fiscal as a ratings agency has forecasted growth of around 13-17 per cent in 2015-16.

According to credit ratings agency, India Ratings new report, medium and heavy CV (M&HCV) will grow at around 13-17 per cent while Light CV will grow at a marginal 3 per cent. Commercial vehicle sales, considered an indicator of the health of the economy has battled uncertainty for over two years now. But the sector has shown improvement in  demand in the last few months even though overall growth remains muted. 

Overall CV  registered a de-growth of -5.65 per cent  when compared to the same period last year. The M&HCV segment grew 10.33 per cent during the same period while LCV grew -12.77 per cent, according to automobile trade body SIAM (Society of Indian Automobile Manufacturers).

“While moderate volume increase in H1 FY’16 is likely to be due to replacement demand, the volume increase during H2 FY’16 will be driven by the expansion by fleet operators, resulting in significant growth for the full year. Due to the lower cyclicality in light commercial vehicle segment, it is expected to lag behind MHCVs in terms of recovery,” the report said.

With the new government at the Centre,  businesses have been upbeat about restarting of stalled infrastructure projects giving a boost to CV sales.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp