We are seeing light commercial vehicle (LCV) as a direct fallout of goods and services tax (GST) as it is a high growth segment, said TT Srinivasaraghavan, MD, Sundaram Finance.
There is a huge increase in warehouse capacity in the country and the ‘hub and spoke’ which we have talked about for decades is now starting to play out because of the free movement of goods, he said.
“We are heading into election season, so we don’t know how that is going to play out,” he added.
Speaking about growth numbers, Srinivasaraghavan said that, “If you look at SIAM’s numbers, they have talked about low double digit numbers in CVs and LCVs and high single digit in passenger cars. So our numbers are around the same ranges, but low-teens to mid-teens.”
It is still a wait and watch situation to see how much the oil prices will impact the CV sector, said Srinivasaraghavan.