SHIFTING GEARS: THE CV INDUSTRY

CV utilisation is going up and manufacturers of trucks and buses are hoping for a growth to return quickly.

- Deven Lad

Shifting gears the CV industry is. It did so during the two months of lockdown due to Covid-19 in India, and albeit at a much slower rate. If Ashok Leyland launched its AVTR range of modern, modular and BSVI medium and heavy-duty trucks during the lockdown, the road freight (transport) fraternity as well as the private bus operators rose to demand relief in taxes and protection for their drivers in what is looked upon as a rare show of unity. If the two developments marked a silver lining, it would be too early to conclude. Of the opinion that the CV industry is in a good zone, VG Ramakrishnan, MD & Managing Partner at Avanteum Advisors LLP, mentioned that the challenges faced by it are largely global rather than local. Pointing at how the economy and CV industry are closely related, he expressed that industry-specific issues have turned into national issues. “The supply chain is currently the area of focus”, he added.

Calling for GST reduction, scrappage policy with an attractive incentive, and the availability of liquidity, Ramakrishnan averred that he saw opportunities for the Indian CV industry growing in international markets. “Since the CV industry has moved to BSVI, it now has an opportunity to enter advanced markets,” he remarked. Stating that companies with lower cash flow would struggle to survive, Ramakrishnan called upon the CV industry to cut down on non-value-added costs to deal with the current situation better. “If one could survive the next two years, it could survive in the business for a long, long time,” he said. Echoing Ramakrishnan’s sentiments, Kaushik Madhavan, Vice President -Mobility, Frost & Sullivan, stated that there could be 35 per cent degrowth (due to the Covid-19 situation).