Commercially Viable

Witnessing a strong rebound on account of the push for infrastructure projects, the commercial vehicles industry has even come to terms with GST implementation and BS-IV norms.

- Mitalee Kurdekar

Things are certainly looking up for the commercial vehicles (CV) industry in India. Despite experiencing constant ups and downs ever since it achieved peak levels in 2011-12, the industry has been following a healthy growth trajectory in recent times, buoyed by the Government’s push for infrastructure projects. In addition, the CV industry has witnessed signs of disruption, some of which were of a global nature like the advent of digitalisation, launches of efficient models to support customer preferences and the inclusion of value-added services. Besides this, there were India-specific disruptions like the advent of GST and demonetisation. However, the aftereffects of these changes have mitigated and are possibly turning into opportunities, today. Further, regulations like stricter emission control norms are definitely playing their part in streamlining products as well as the industry, preparing it for a future where introductions such as electric vehicles will be yet another game changer.

“The market is in very good shape. We are seeing are a strong rebound right now, from the uncertainty regarding the transitions to BS-IV and to the post-GST landscape, and of course other influences like demonetisation that temporarily caused some distortions,” says Erich Nesselhauf, MD & CEO, DICV.

The CV industry seems to be on a roll with an excellent growth trajectory. In fact, it is expected to touch its peak this year and, as a whole, is expected to witness a double-digit growth in numbers, especially given the Government push on infrastructure.

“There are positive sentiments in the economy and we are witnessing good growth in FMCG and consumer durables sectors, and healthy rural activity, further fuelling this growth. Further, adjoining markets in the Indian subcontinent are also opening up a good opportunity for the CV OEMs,” suggests