Commercial vehicle volumes to contract 25-28% in FY21, outlook remains negative: Icra

Commercial vehicles (CV) volumes are expected to shrink 25-28 per cent this fiscal amid multiple headwinds along with the pandemic impact, and the outlook for the sector remains "negative" on the back of continuing challenges, ratings agency Icra.
In the previous fiscal, CV domestic volumes stood at 7,17,688 units as against an all-time high of 10,07,311 vehicles in 2018-19.
The outlook for the commercial vehicles (CV) sector remains 'negative' on the back of continuing challenges such as over-capacity, subdued freight availability, financing constraints, among others, all of which have compounded due to the pandemic.
The ratings agency expects that the volumes in FY2021 to contract by 25-28 per cent, which would bring industry volumes down to the lowest levels in more than a decade.