Vellayan Subbiah, managing director, Cholamandalam Investment & Finance says that there will be a revival in the sector, but it will only be seen in July 2014 as Q1 of every year is a seasonally weak quarter.
The first quatter of FY15 (April-may-June) is likely to be weak for commercial vehicles business, says Vellayan Subbiah, managing director, Cholamandalam Investment & Finance.
Speaking to CNBC-TV18, Subbiah and Rupali Shankar, director, Crisil Ratings, share their views on the CV business and the road ahead.
Shankar says the past 18 months have been very stressful for companies as ehicle utilization was at a decade low and a sharp increase in NBFC delinquencies was seen.
"I expect a lowering in policy bottlenecks her on. As manufacturing sector utilization comes backs, slow stabilization will be seen in the transport operating sector," adds Shankar.
But she quickly adds that this revival won't be inline with the spurt seen in 2011.
Subbiah agrees that there will be a revival, but it will only be seen in July 2014 as Q1 of every year is a seasonally weak quarter.
"It is not that everyone is eyeing the election outcome. It is just that theu have stopped any sort of economic activity until the results are declared," highlights Subbiah.
Transcript to follow soon.
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