homeauto NewsExpect M&HCV sales in 2020 to be 10 20% lower as compared to 2019, says Daimler India CV’s Satyakam Arya
Expect M&HCV sales in 2020 to be 10-20% lower as compared to 2019, says Daimler India CV’s Satyakam Arya
When it comes to China, and the specific situation, I believe every manufacturer around the world would have an impact in some form because China is deeply entrenched in the supply chains, said Daimler India Commercial Vehicles' managing director and CEO, Satyakam Arya.
As car sales in India almost slowed to a halt in February, commercial vehicle sales may not be any different for the rest of the year is the word coming in from German automobile manufacturer Daimler India.
Daimler India Commercial Vehicles' Managing Director and CEO, Satyakam Arya said that the market could see a 20 percent drop in sales through this year due to the BS-VI rollout.
“We believe when it comes to again medium and heavy commercial vehicles on the truck side, 2020 will see another drop in demand as compared to 2019. So, 34 percent was the de-growth in 2019, and we believe the market will further come down in 2020 because of two reasons, one is BS-VI introduction and the pre-buy of BS-IV. So, the first quarter which is on-going January to March is low, second quarter and third quarter would be extremely low but in Q4 that is the last quarter of this calendar year, we expect growth to start come back."
"In the end, we expect that 2020 would be about 10-20 percent lower than 2019, but in 2021 we definitely expect the market to start growing,” he added.
The company has also said that it is looking at alternative supply sources in the light of the coronavirus scare in China. “When it comes to China, and the specific situation, I believe every manufacturer around the world would have an impact in some form because China is deeply entrenched in the supply chains. Specifically to us, we are closely monitoring the situation because many of our suppliers get parts or raw materials from China. So, far we are not impacted but what we are doing right now is, we are very quickly building alternatives to where we feel the risk could come in near future,” Arya said, adding that this would be possible because for most of the components or raw materials, the company has a second or third alternative, which needs to be activated.
“We are looking at finding another supplier for the same parts or finding another source for the raw materials in a different geography,” he said, adding that the company has supply chains in different parts of the world since they use the same technology all over and hence can activate the supply chains in other geographies.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP holds meeting in Delhi as polling underway for 5th phase
May 20, 2024 4:21 PM
UP Police arrests man after viral videos shows him voting multiple times
May 20, 2024 2:18 PM