The commercial vehicle (CV) segment is likely to get affected in the first two quarters following the implementation of GST even though its overall impact would be beneficial in the long term, a senior official of vehicle manufacturer Ashok Leyland today said.
Initially, the performance of the commercial vehicle segment may be affected with the implementation of GST, President (Global Trucks) of Ashok Leyland Anuj Kathuria said.
The factors like how to operate under the new environment and monsoon situation could impact the CV sector. The segment is likely to get affected in the first two quarters, Kathuria said.
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Kathuria, however, expressed confidence that the new tax system would be good in the long term for the country.
The commercial vehicle market will start improving after Diwali, he said claiming that despite the slowdown in the segment, the demand for Tipper was good due to investment being made by the government to improve infrastructure.
Besides, the GST would be more productive and improve the efficiency of the road transport sector, Kathuria said.
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