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    Recovery likely in small CV segment once COVID-19 lockdown ends: Survey

    Recovery likely in small CV segment once COVID-19 lockdown ends: Survey

    Recovery likely in small CV segment once COVID-19 lockdown ends: Survey
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    By Jude Sannith   IST (Updated)

    The commercial vehicle market may be facing its worst rut in recent times, but when recovery does eventually occur, it will first be felt in the small commercial vehicles (SCVs) segment as opposed to medium and heavy commercial vehicles (MHCVs) segment, according to truck-buying “digital playground” TrucksDekho.
    “The sub-2-tonne and sub-3.5-tonne categories will see demand picking up significantly,” said Manish Harodia, chief business officer, TrucksDekho, a part of Cardekho.com.
    “Most businesses, including regular provision stores and those that sell supplies, will carry out local or hyper local transportation activity, and will be looking for a last-mile connectivity option,” he said, adding, “They will form a new-found customer base for small CVs.”
    Harodia’s projections come amid one of the worst periods for commercial vehicle sales on the back of the COVID-19 pandemic, with CV major Ashok Leyland reporting a whopping 90 percent year-on-year drop in domestic sales for May 2020. Daimler India, on its part, has said that it expects the Indian MHCV market to suffer de-growth of 50 to 60 percent in 2020, before some semblance of recovery begins next year.
    A TrucksDekho study has predicted that 85 percent of prospective commercial vehicle buyers would continue with their purchase plans post lockdown. The study also claims that 50 percent of these prospective customers are interested in buying their commercial vehicle online while 35 percent of these potential buyers could make their purchase decision within a month after the lockdown is completely lifted. The survey was carried out on a sample size of 800 comprising an in-market audience across segments, according to a company release.
    While these projections may seem misplaced given the damage that the COVID-19 pandemic has inflicted on the automobile market and specifically to commercial vehicles, a significant chunk of these projections is understood to be made in the SCV segment.
    “The likes of Ashok Leyland and Maruti Suzuki, who sell a significant chunk of SCVs and small loading vehicles, could capitalise on this demand,” Harodia said.
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