Eicher Motor trucks are parked in Mumbai (Photographer: Prashanth Vishwanathan/Bloomberg)

Eicher-Volvo JV Expects Commercial Vehicle Sales To Revive Once NBFC Crisis Is Resolved

The commercial vehicle segment will recover from the slowdown as soon as the crisis around non-bank lenders is resolved, said VE Commercial Vehicles Ltd.’s Vinod Aggarwal.

The non-bank financial companies are now realigning their credit lines and tapping new sources of financing, be it direct borrowing or bonds, the chief executive officer at Volvo Group and Eicher Motors joint venture, told BloombergQuint. “That (securing new funding issue) should get resolved in the next three months...the (commercial vehicle) industry should come back as soon as NBFCs come out of this crisis.”

Liquidity tightening triggered by payment defaults at IL&FS Ltd. led to a slowdown in lending by NBFCs. That hurt the flow of funds to some segments of the economy.

Aggarwal also said while there won’t be “bumper sales” in the fourth quarter like the previous year, the numbers would be good on account of lower fuel prices.

Watch the full conversation here:

Also read: Need Better Regulation And Data Collection In NBFC Sector, Economic Affairs Secretary Garg Says