21 May 2021
"Commercial vehicles are important to the economy and the actions taken by the Govt will help the sales volumes' growth to bounce back by FY2021," the firm said in a report.
New Delhi: The Centre's actions to accelerate infrastructural projects will help recover the commercial vehicle industry, said Grant Thornton Bharat.
According to the firm, other actions like introducing the 'Vehicle Scrappage Policy' will assist the new age 'green, safe and efficient vehicles. Besides, it aimed to determine that the 'Production Linked Incentive' (PLI) scheme will play a major role in reviving the sector. The scheme increased its benefits for investments ranging in crores to strengthen the companies joining in 'Aatmanirbhar Bharat' and contributing to India's exports to bring more investments.
"Commercial vehicles are important to the economy and the actions taken by the Govt will help the sales volumes' growth to bounce back by FY2021," the firm said in a report.
"A financially strong and healthy commercial vehicle industry may assist with actions that would help in transforming the logistics and transportation sector, which is the key of rapid economic growth of India."
A 20.77% y-o-y drop in sales seen for the commercial vehicle industry from last fiscal.
The firm quoted factors such as the NBFC (non-banking financial institution) crisis and transition to Bharat Stage (BS)-VI raised the burden on the sector.
Apart from it, for the month of May, the Grant Thornton Bharat Auto Bytes report pointed out the future of the commercial vehicle industry is likely to shape by trends like electrification, telematics, regulations, IoT and big data, evolving, benchmarking global standards along with ADAS (advanced driver assistance systems) and higher tonnage vehicles.
Saket Mehra, the partner of Grant Thornton Bharat LLP, said that "the crisis has given a chance to redesign business programs with broader use of new emerging techniques and thus paves the way for innovation."
"As digital retailing witnesses growth, dealers and OEMs will need to plan their strategy in stages for a seamless transformation."
