CV firms build inventory to meet likely demand surge this quarter

Anticipating a surge in demand ahead of the implementation of BS-IV emission norms from April 1, commercial vehicle (CV) makers are building inventory. After a tough December quarter, they expect a better March quarter.

According to industry sources, 30,000 to 40,000 units have been kept as inventory to meet the demand. With the new norms, a price rise of close to 10 per cent is expected on vehicles, beside the servicing issues for newer technology ones.

E-mails in this regard sent to Ashok Leyland, Mahindra and Mahindra and Tata Motors weren't answered. However, Leyland's management in a recent analyst call said it