Domestic Demand for CV to Cross 10 Lakh Units
The Commercial Vehicles Conclave 2015 powered by ET and ZigWheels saw the who’s who of the commercial vehicle industry at the ITC Maratha, Mumbai. Mr. VG Ramakrishna, Managing Director, South Asia, Frost and Sullivan was at the conclave to share his opinions on the prospects of the commercial vehicle (CV) industry.
Speaking at the Commercial Vehicles Conclave 2015, Ramakrishna, says that lower crude oil prices is helping the commercial vehicle industry to grow. He is of the opinion that the revival of the mining and infrastructure sectors is expected to trigger a double digit growth in the Tipper segment. The Frost and Sullivan official also predicts that the agricultural output is likely to be robust in the next financial year, which will then start triggering demand for light commercial vehicles.
Ramakrishna is confident that the domestic demand for commercial vehicles will cross the 10 lakh units mark by 2017. He states that the lower diesel price is helping to improve the profitability of transporters. Goods and Service Tax (GST) implementation can provide a long-term boost to the CV industry.
He predicts that the small commercial vehicles (SCV) and large commercial vehicles (LCV) demand will be subdued over the next third and fourth quarters, while the medium and heavy commercial vehicles (M&HCV) will drive the CV industry. Ramakrishna is also of the opinion that the M&HCV industry is expected to grow at 20 per cent in short to mid-term (2-4 Years).
The top official at Frost and Sullivan is also confident that India will emerge as an export hub to key hotspots such as ASEAN, Middle East, and the African markets. He opines that the increasing labour rates in China will further support India to emerge as an export hub.
He states that while global majors such as Daimler are already focusing on India the country is well positioned to rise as a major export hub to emerging markets in Africa and the Far East.