CRISIL pegs loss for Commercial vehicle makers at Rs 6,000 cr this fiscal

Commercial vehicle (CV) makers are likely to report Rs 6,000 crore in losses on the back of a continued decline in sales, according to CRISIL.

It says a 30 per cent decline in sales volume, on an already weak base, would lead to a nearly six-fold increase in net loss this financial year.  “This, combined with the stretch in working capital on account of the support extended to dealers and suppliers, could result in sizeable negative cash flows and ballooning debt,” said the rating agency.

CV sales have been hit by new overloading norms and a slowing economy, and the outbreak only