Sep 10, 1999|
CV sales pick up momentum
News reports reveal that commercial vehicle (CV) manufacturers have posted encouraging sales growth in the first five months of FY2000.
The CV segment is directly linked to foreign trade and industrial and consumer goods demand. Hence it is a proxy indictor of the economic mood prevalent in the country. Fluctuations on the import-export front and industrial production is typically reflected in the demand for CVs.
CV sales in the current financial year have certainly put the smile back on the faces of manufacturers. Ashok Leyland has clocked 26% sales growth in CVs over the period April-August 1999. Figures for TELCO, Ashok Leyland's main competitor, weren't available.
Market share for M/HCVs in July 1999
The encouraging sales growth in CVs has prompted manufacturers to rework their forecast for FY2000, and they are now speaking of growth rates in excess of 12%. However, maybe manufacturers shouldn't get too enthusiastic about their growth figures in FY2000, as they can't be benchmarked against FY99 figures, which was a disastrous period for the industry (12% CV sales decline).
Nevertheless, the boost in CV sales is reflective of the mood in certain key sectors like cement, LPG, steel, construction and agriculture. Explosive growth in consumer durables like colour television (CTVs) and audio products have also contributed to increased CV sales in FY2000.
The commercial vehicle sector will be a key beneficiary of a revival in economic activity, the signs of which are already evident. With the other core sectors showing definite signs of a revival, the CV segment can be expected to gain momentum in sales growth.
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