Auto Industry To Grow 20% In FY20 Due To Pre-Buying, Says Ashok Leyland’s Mahadevan
The Indian automobile industry could witness 20 percent volume growth in the year ended March 2020 due to pre-buying ahead of the onset of new emission norms, according to Gopal Mahadevan.
“Volume growth in a year before adoption of newer norms is a phenomenon witnessed in all previous switchovers both in domestic and global markets,” the chief executive officer of Ashok Leyland told BloombergQuint.
The government plans to adopt Bharat Standard VI fuel norms from April next year. The truck maker said in a statement during its earnings announcement last week that it had successfully completed BS VI compliance testing across its entire range of engines.
If there is demand, then there’s no reason for truck purchases to come off just due to switching to newer norms.Gopal Mahadevan, Chief Executive Officer, Ashok Leyland