Commercial vehicle (CV) sales improved sequentially for Eicher Motors in February. Vinod Aggarwal, MD & CEO, VE (Volvo & Eicher) Commercial Vehicles, shared his views and outlook.
“Every year, January to March quarter is a relatively better quarter. So from that point of view, you will see better sales in March even though it will be less than last year’s January to March quarter, March sales numbers are expected to be better. Hopefully, next year also, after the elections the industry should do better,” Aggarwal said on Tuesday.
“Non-banking financial companies (NBFCs) are coming out of the problem now and there are only one-two companies which are left out otherwise everything is back to normal. However, the rates of interest are still high – the percentage of financing has come down and the rates of interest has gone up. So this is a structural change which has happened and this might continue going forward because all these financial companies or banks are more careful about the non-performing assets (NPAs). So from that point of view, this industry will have to adjust to that, the loan to vehicle (LTVs) will continue to be lower than whatever it was earlier,” he added.
Talking about the rural economy, Aggarwal said, “It is expected to be better only because more money is going to come in the hands of rural people and then we are expecting good monsoon again in the next year and overall rural economy will be alright but the biggest driver of the CV industry is the infrastructure.”