A washout year for passenger commercial vehicle segment

Automotive According to FY21 sales data released by the Society of Indian Automobile Manufacturers (SIAM), sales of passenger medium and heavy CVs dropped 81.7% year-on-year and those of passenger light CVs dropped 73.6%, even as the goods counterparts of these sub-segments dropped just 16.8% and 11.5%. While goods CVs appear to be coming out of recession —until the second wave hit, their month-on-month sales were rising consistently — analysts argue that passenger CVs (buses and mini-buses) will take a very long time to recover, and CY2021, in all possibility, could be a washout for this sub-segment. Major buyers of buses and mini-buses in India are state transport undertakings (STUs), schools, offices, private transporters and contractors who service schools, corporates, hotels, etc. With schools closed, work from home likely to be a permanent feature at some corporates, and tourism activity not expected to pick-up for some time, sales of buses may remain muted.