New Delhi, July 17 (IANS) Ratings agency ICRA on Monday said that multiple factors have led to the nine per cent decline in the domestic commercial vehicle (CV) sales for the first quarter (Q1) 2017-18.
"This was triggered by combination of factors including pre-buying (in Q4 FY2017 ahead of the BS-IV roll-out), deferment by fleet operators before GST roll-out and supply disruptions because of limited availability of components for BS-IV vehicles," the ratings agency said in a statement.
"As a result, the M&HCV (truck) and bus sales collapsed by 33 per cent and 23 per cent, respectively during the quarter."
According to Subrata Ray, Senior Group Vice President, ICRA, sales momentum will be achieved back due to an increased thrust on infrastructure and rural sectors in the recent budget and potential implementation of fleet modernisation or scrappage programme.
Ray pointed out that even the higher demand from consumption-driven sectors, especially for LCVs (light commercial vehicles) and intermediate commercial vehicles (ICVs) will give a boost to CV sales.
In addition, the ratings agency predicted that domestic CV industry is likely to register a growth of 6-8 per cent in FY2018.