India LCV market sees green shoots of recovery after two-year decline

In an indicator of the improved Indian economy, growth has started filtering down from M&HCVs to the light commercial vehicle (LCV) market. The recovery, albeit slow, is likely to speed up in FY2016-17 thanks to increased infrastructure spend by the government, faster movement of goods across the country by e-retailers and the potential of a regular monsoon season.

LCV manufacturers will heave a sigh of relief for they have seen over two years of negative growth, the sector experiencing multiple headwinds like poor monsoon, unavailability of finance, overcapacity and also lower demand.

The cyclist nature of the domestic ...