A lack of consumer confidence has hit India's domestic commercial vehicle market.
New vehicles sales slump Image: The Hindu |
Economic slowdown and lack of enthusiasm amongst consumers had led to a slump in India's domestic vehicle sales, with commercial vehicle volumes down 20% and passengers cars almost 18% lower over the past 12 months. Medium and heavy goods vehicles have apparently been worst hit, with sales down more than 25%.
However, the malaise is not expected to last with Indian credit ratings agency, ICRA, predicting an upturn across the automotive sector over the next financial year - at least in terms of sales. The organisation noted in recent research that a number of truck manufacturers are set to launch major new models imminently in both the LCV and HCV segments.
However, increased sales will not necessarily mean higher profits. According to the research, the increased expenses resulting from the new vehicle launches, combined with greater competition and planned wage rises for employees will mean tighter margins on truck sales.