LCV Segment Back on Track in FY 2016-17

The light commercial segment that was hit badly due to the economic slowdown & low rural demand is now showing the signs of revival in last few months.

In February the segment grew by almost 10% when compared to the same month in 2015. The sales stood at 33,324 units, whereas Feb 2015 sales were 30,382 units.

As per the ICRA rating agency the growth is here to stay. According to a report on Indian commercial vehicle industry, the outlook for the LCV segment is improving on back of low-base and improving viability. "We expect that the demand is likely to pick-up in FY 2017 on back of expectation of replacement-led demand (i.e. three years of declining sales), some pre-buying ahead of the implementation of BS-IV norms (by April 2017) and gradual improvement in viability on back of lower diesel prices," the report said.

Contradicting the earlier prediction of decline by 2-4% now the segment is all set to grow by 10% approx by the end of FY 2016-17. The overall commercial vehicle segment is showing a positive outlook & growth can be seen in all segments. The M&HCV (Truck) segment has registered a growth of 30.6% in the first 11 months of FY 2016. ICRA also expects the domestic industry volumes to recover in the near-term on back of expectation of fresh permits by some of the key states like Maharashtra in Q4 FY 2016. Accordingly, industry volumes are expected to recover and grow by 8-10 percent in the domestic market in FY 2017.

Meanwhile the industry is hopeful of achieving the desired growth the outlook for used commercial vehicles also ride high as the segment continues to perform well even in the bad day. Now when we have the industry pundits predicting growth in new CVs the used commercial vehicle will outgrow the numbers significantly.

In conclusion if you are looking ahead to buy a used Commercial Vehicle than visiting Shriram Automall will turn out to be a good decision as the company offers a wide range of used CVs under one roof at competitive price.