CV sales volume in fiscal 2021 expected to be significantly low
COVID-19 outbreak led to nationwide lockdown across the country which hampered economic activity in Q1 FY21. Supply chain constraints and labour availability issues hampered OEM's attempt to build up inventory at dealer end in the first quarter. OEMs also refrained from pushing inventory in a low demand scenario resulting in ~85% on-year decline in CV segment.
LCVs, which largely cater to movement of agricultural produce, e-retail, pharmaceuticals and consumer staples, showed some resilience in Q2FY21 as it witnessed a lower ~3% on-year decline vis-a-vis ~43% on-year decline in MHCVs. In the same quarter, MHCVs continued to be impacted by lower freight demand and over capacity due to revised axle norm. Busess, too, suffered owing to the need for social distancing and fell by ~78% on-year in Q2.
In Q3 FY21, LCV volumes witnessed ~2-4% on-year growth over a low base driven by continued demand from aforementioned demand segments. MHCV segment volume witnessed ~15-17% on-year growth over a low base due to sequential improvement in freight demand. Buses, on the other hand, continue to remain impacted with ~75-80% on-year decline in volumes.
