The Future Looks Bright for Commercial Vehicles. 🚛✨
The sale of commercial vehicles in India is expected to reach 10 lakh units by FY 2026. This exciting news comes from a report released by Crisil on Wednesday. This figure is the same as the peak sales seen in FY 2019, before the pandemic hit.
Why Are Commercial Vehicles in Demand? 🔍
The growing demand for commercial vehicles is mainly due to several factors. There is a rise in infrastructure projects across the country, and many businesses need to replace their old vehicles. Additionally, the PM-Ebus Seva Scheme is also helping boost this demand.
Stable Credit Outlook for the Sector 💵
According to the report, the credit outlook for the commercial vehicle sector is stable. This stability is supported by strong liquidity and good cash flow. Light Commercial Vehicles (LCVs) are expected to lead the growth, making up nearly 62% of total sales. The rise of e-commerce and warehousing is driving this growth.
Recovery from Previous Challenges 📈
Anuj Sethi, Senior Director of Crisil Ratings, mentioned that the commercial vehicle market is recovering from the recession of the previous financial year. The volume of commercial vehicles is expected to grow by 3-5% this year, aligning with long-term sales trends.
Infrastructure Spending Is Key. 🏗️
The increase in spending on infrastructure projects like roads and metro-rail will further support this growth. Medium and Heavy Commercial Vehicles (M&HCVs), which account for 38% of total sales, are projected to grow by 2-4%.
Overall, the commercial vehicle market in India is looking strong, with many factors contributing to its growth. 🚀
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