The Indian commercial vehicle industry which has been passing through one of the toughest phases in its history in the last few years has started reverting to its growth track. This segment, particularly the medium and heavy commercial vehicle category, registered a record sale of 350,000 units in March 2012. But sales dropped to 190,000 units in March 2014. However, with the various key initiatives taken by the new Government at the Centre, there are distinct signs of the segment’s restoration to health.
Mr. T.T. Srinivasaraghavan, Managing Director, Sundaram Finance Ltd. (SFL)
This was stated by Mr. T.T. Srinivasaraghavan, Managing Director, Sundaram Finance Ltd. (SFL), while addressing a program titled “State of Economy” organized by the Madras Chamber of Commerce (MCCI) in Chennai recently.
He also referred to trucking as the heart-beat of the industry, and said the recent fall in world crude oil prices has proved a bonanza to several players in the field. As for vehicle financing, he pointed out that, with the rise in per capita income, only 20 per cent of vehicle owners now opt for buying through the hire purchase scheme as compared to around 90 per cent in the past.
Buzz on rural India prosperity
Now automobile manufacturers have started focusing on rural areas by setting up more dealerships there. To achieve a higher GDP, the Government would do well to revive all the stalled infrastructure projects. This would prove a big morale-booster to overseas investors. Further, new legislative measures need to be introduced to achieve the targeted growth, he added.