India's commercial vehicles sales in September rose at the fastest pace in nearly six years, suggesting a recovery in the economy. Manufacturers dispatched 77,195 commercial vehicles, 25.27% more from a year earlier, to dealerships in the past month. This is the fastest growth since November 2011, when it was 34.97%. Commercial vehicle sales are often seen as an indicator of economic growth.
Commercial vehicle sales declined 22.93% in April and 6.36% in May, before expanding 1.44%, 13.78% and 23.22% the next three months.
Last month, while sales of medium and heavy commercial vehicles increased 25.61% to 31,086 units, those of light commercial vehicles went up by 25.05% to 46,109 units.
However, an 8-10% increase in ownership cost in the MHCV segment, due to higher vehicle prices following the transition to BS IV emission standards, may impact demand to some extent.