A 76 per cent growth in sale of commercial vehicles in April led the auto sector start the new fiscal year on a good note. According to data released by the Society of Indian Automobile Manufacturers (SIAM) on Thursday a total of 72,993 CVs were sold in April, although on a low base from a year ago.
The CV segment was most-hit by disruption in fuel emission standards. Heavy trucks and buses witnessed an unprecedented growth of 169 per cent at 28,574 units while light commercial vehicles grew to 44,446 units at 43.92 per cent, as per ENS Economic Bureau report.
According to report, deputy DG, SIAM, Sugato Sen, told reporters that In April 2017, we moved from BS III to BS IV. As a result, production (of CVs) was significantly weak as people were not able to find components, so production was severely down. So that’s why you have seen there is a 200 per cent growth.
Auto analysts believe that CVs will continue to post healthy growth in the coming months due to strong economic indicators and prediction of normal monsoon. Sridhar V, partner, Grant Thornton India LLP, said that it CV category) is expected to show a growing trend, especially with the monsoon prediction being positive, and a fair amount of that growth is expected to be also on account of replacements and strict enforcement of compliance with overloading.
The auto industry grew at an impressive 17.44 per cent domestically in April from a year ago. The automakers sold 23,79,718 vehicles in the opening month of this fiscal vis-à-vis 20,26,373 units a year ago. Utility vehicles continue to lead the growth in the PV segment that includes passenger cars and vans, with 11.92 per cent in April. A total of 79,136 UVs were sold in April FY18 domestically when compared to 70,706 units a year ago.
(Source: ENS Economic Bureau)