Demonetisation to impact sales in the near-term; May moderate pre-buying expected ahead of BS-IV norms : ICRA

ICRA

  • Demonetisation to impact CV sales in the near-term as fleet operators likely to put new vehicle purchase on hold
  • Demand for trucks has fallen by 15-30%; Market load operators have hit the most owing to high reliance on cash-based transactions to meet trip expenses
  • CV Financiers: Cash-based collections have dwindled significantly post  demonetization
  • CV Dealers: New vehicle enquiries have dried up; Customers have also put existing orders on hold
  • Buses: Impact of demonetisation to be lower due to higher share of institutional client base
  • Freight rates have not moved in line with recovery in diesel prices owing to low cargo availability  and have risen by 7-9%

Please click below link to view the entire report:

icra-comments-demonetisation-to-impact-cv-sales-in-the-near-term-nov-22-2016

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