Commercial vehicle sales to see a decline in FY18, says India Ratings

Agency believes demonetisation drive has impacted second-hand CV market

While the sale of commercial vehicles started on a positive note, with a growth of about one per cent in January, it is expected to close financial year 2017-18 with a decline, due to a slowdown in the replacement demand and weak industrial activity, among the other factors.

The medium and heavy commercial vehicle (MHCV) segment will post a steep decline in volumes in FY18, due to slowing replacement demand, weak industrial activity, rising diesel prices and overcapacity, says India Ratings and Research (India Ratings).

Commercial vehicle (CV) majors Ashok Leyland and Mahindra did not respond to an email asking