The implementation of BS-VI emission norms from April 1, 2020, could create short-term headwinds for the commercial vehicles (CV) segment, India Ratings and Research said in a report.
Considering the sharp year-on-year fall in sales volumes of CVs since May 2019, the underwhelming pace of industrial activity, and the higher cost of ownership of a BS VI CV, the implementation of BS VI could add to the sector’s woes, it said.
India Ratings believes that the pre-buying of BS-IV CVs till the end of the fourth quarter of FY20 is unlikely to be meaningful compared with earlier occasions when new emission norms came in.
