Coronavirus hit the auto sector to a great extent. The sales of the vehicle declined in India due to lockdown this year. Now, in India according to India Ratings and Research (Ind-Ra), in India could take longer to recover than expected despite improving macro-economic indicators,
The light commercial vehicles (LCVs) segment has begun to recover as they provide last mile connectivity and because of increased e-commerce activities but medium and heavy commercial vehicle (MHCV) sales are unlikely to recover before the fourth quarter of 2021-22.
The rating agency reiterated that MHCV sales could decline by 35-45 per cent year-on-year (y-o-y) in FY21, though the decline in LCV sales is likely to be contained within 20-25 per cent. In a statement, it said, "In FY22, the industry could see sales growth in double digits, especially due to the low base of FY20-FY21." CV sales volumes declined 56 per cent y-o-y, with a steeper decline of 76 per cent recorded in MHCVs.
Citing Federation of Automobile Dealers Associations (FADA) data, it said that CV retail sales grew sequentially in November 2020 (up 13 per cent from October). However, it is lagging behind the average monthly sales recorded during FY19-FY20. Sales volume in November was down 31 per cent y-o-y.
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