For fleet owners, the ownership of BS-VI vehicle would be credit neutral as the benefits from fuel efficiency and maintenance would largely be offset by higher debt repayments, it said.
The revised axle load norms led to inorganic capacity expansion in the system while demand-side fundamentals have remained fairly muted as evident from the decline in the index of industrial production and the decrease in the aggregate volumes of manufacturing companies, it noted.
"Demand for CVs would remain challenged in the near term by the slowing growth of industries and the economy in general as well as by the impact of the extended monsoon on agricultural produce and rural demand," India Ratings and Research said.
Assuming customers anticipate a revival in the economy and are offered incentives in the form of discounts, the agency believes the sector might witness moderate levels of pre-buying of BS-IV CVs. This, however, would lead to delays in the purchases of BS-VI CVs post April 1, 2020, it added.
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