A YEAR LIKE NO OTHER

The year 2020 was an extraordinary year for the CV industry.

- Shyam Maller

A black swan event for the Indian and world economy, FY2020-21 saw cataclysmic ramifications across businesses, sectors and human lives. Transitioning to BSVI that pushed the prices of vehicles up by 18 to 20 per cent, the CV industry, in FY2020-21 had to deal with the massive body blow of the Covid pandemic. Plagued with excess capacity (mainly due to the new axle norms of 2018) and already experiencing a sales decline post a peak of FY2018-19, the CV industry faced strained finance availability as banks and financial institutions tightened lending policies. Staring at a new world order where things would never be the same again, the CV industry found itself in a situation that looked no less than a gigantic catastrophe. The chart (FY21 vs FY20) aptly highlights what FY2020-21 was like for the CV industry. It puts forth numbers that point at the pain the CV industry bore.

The domestic CV industry volumes were the lowest since FY2010-11 and the most extensive damage was faced by the bus segment. The M&HCV segment followed. In fact, the bus segment led (largest contributor) the industry to record a decline of 17.3 per cent on a YoY basis. The Sequential Quarterwise TIV (Total Industry Volume) growth FY21 chart provides an insight into how the TIV evolved through the year. Barring the bus segment, the industry sales volumes started picking up from October 2020.