· As per ICRA, the total inventory of CV OEMs is estimated to have been approximately 74K units, which is around 1.3x the average monthly sales
· Within the M&HCV (Truck), the growth has been driven primarily by the Tipper segment, which witnessed a growth of 31% (till 9m FY 2017) on back of strong demand from both construction as well as mining segment
· sales of CV OEMs have been below expectation primarily because of subdued optimism among fleet operators, system wide inventory levels had increased to ~1.3x average monthly sales by February
· In contrast to M&HCV (Trucks), the LCV has registered healthy growth in volumes (up 7.2% in 11m FY 2016) on back of low-base effect (i.e. sales declined by 30% between FY 2013-16) and improving demand for SCVs aided by pick-up in consumption-driven sectors
· According to ICRA the CV Industry is likely to witness 6-8% growth in FY 2018 aided by higher budgetary allocation towards infrastructure and rural sectors, potential implementation of scrappage program will also trigger replacement demand
· Domestic CV segment is expected to register a growth of 6-8% in FY 2018 and CV Exports are expected to grow by 8-10% in FY 2018
Please find enclosed herewith the entire report