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Rising ownership costs to hurt India's commercial vehicle volume growth: Fitch

Reuters · 1y ago

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India's commercial vehicle sales volume growth is expected to slow down to low-to-mid-single digits due to increasing ownership costs, according to Fitch Ratings. Rising regulatory requirements, inflation, and high interest rates are driving up the costs of owning commercial vehicles, which is impacting purchase decisions. These factors have resulted in a 3.3% year-on-year drop in commercial vehicle wholesale volume in the second quarter of FY23. Fitch expects medium and heavy commercial vehicles to have faster volume growth compared to light commercial vehicles.