Good times ahead for the commercial vehicles market

Sunday, 21 September 2014 10:27 administrator
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A commercial vehicleThe rising per capita consumption in India is fuelling growth of the commercial vehicles segment says Frost & Sullivan.

 

Mumbai. India’s gross domestic product is anticipated to achieve a peak growth rate of 7.8 per cent by FY2020. Translation of the current governments vision through reforms brought about in the economy and manifestation of the positive effects will result in revival of commercial vehicles market in India, around second half of FY15.

New analysis from Frost & Sullivan, Forecast of the Indian Commercial Vehicles (CV) Market, projects the sales volumes of CV to go up from 0.6 million in FY 2014 to 0.9 million in FY 2020. The study covers light CV (LCV), medium CV (MCV) and heavy CV (HCV) in the passenger and goods carriers segments. LCV sales will grow at a compound annual growth rate (CAGR) of 6.1 per cent over the forecast period owing to urbanisation, which is a key trend impacting the LCV Sales positively. MCV and HCV sales will expand at a CAGR of 7 per cent during the same time frame due to the revival of the manufacturing industry and increased activity in the infrastructure, industrial and mining sectors.