New regulatory rules slow down growth of commercial vehicle sales

Light commercial vehicle volume sales growth would also lessen but still be a healthy 9 per cent

T E Narasimhan  |  Chennai 

Growth in sales volume of medium and heavy commercial vehicles (M&HCVs) is not expected to exceed 4 per cent this financial year, after double-digit rises for two years. New regulatory rules, softer freight rates and a liquidity crunch at non-bank lenders (which finance half of CV sales) are among the reasons.

Credit outlook for the industry, however, is expected to be stable, owing to steady operating margins, said rating agency CRISIL. Light CV volume sales growth would also lessen but still be a healthy 9 per cent. CV majors Ashok Leyland and Tata Motors are, however, ...

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First Published: Wed, June 05 2019. 21:46 IST