MotorIndia: India CV Market Facing Lower Demand in 2019
The India CV market is facing lower demand in 2019 reports Motorindia magazine in its August 2019 Market Outlook issue.
The report was prepared by Jinal Shah, Regional Director, South Asia Operations, for Power Systems Research.
After a blockbuster growth in 2017 and 2018, writes Shah, growth that was largely driven by demand for tipper trucks due to the new infrastructure, mining projects and fleet replacement; the party ended in Q4 of 2018.
"The industry experienced the sharpest contrast in growth between 2018 and 2019," he writes, "mainly due to liquidity crunch, revised axel norms, slowdown in manufacturing and infrastructure along with uncertainties due to the general elections."
The CV market is likely to continue showing soft demand as customers defer purchases, Shah writes, caused by poor freight availability, under-utilization of trucks and falling freight rates. "The slowing down of the economy is hurting overall customer sentiments and impacting demand for new vehicles," he writes. PSR