Commercial vehicle makers to gain the most from FM Sitharaman's measures

Tata Motors, Ashok Leyland key gainers; infra boost, consumption uptick needed for trend reversal

The slew of measures for the auto sector announced by Finance Minister Nirmala Sitharaman on Friday is expected to benefit the medium and heavy commercial vehicle (M&HCV) segment the most. The segment is the worst affected by the slowdown due to falling freight rates, which hit a three-year low, credit squeeze, higher costs and relaxation of axle load norms. These factors led to a 48 per cent year-on-year (YoY) fall in M&HCV volumes in July, the highest for any segment in the auto sector. 

The key benefit for M&HCVs are the measures aimed at improving liquidity for micro, small and