Commercial vehicle sales seen growing 7-9% this year; FY21 outlook muted

The outlook for 2020-21 remains subdued in the absence of clarity on implementation of the proposed scrappage policy

The domestic commercial vehicle industry is expected to grow by 7-9 per cent in 2019-20, even as the outlook for the next financial year remains muted in the absence of clarity on the scrappage policy envisaged earlier.

Domestic sales of commercial vehicles slowed down in the latter half of 2018-19, amid multiple headwinds that have spilt on to this financial year as well. Nevertheless, robust growth in the first few months of the present financial year have supported overall growth, with domestic sales expanding 18 per cent in volume terms this year.

The growth slowdown in the second half of