Mark To Market | Are commercial vehicle sales anywhere near a bottom yet?

The 59% cut in production of medium and heavy comm... moreThe 59% cut in production of medium and heavy commercial vehicles in August shows the deepening crisis in auto sector- mirrors slowdown in the economy. Market leaders Tata Motors and Ashok Leyland continue to announce production cuts even with the festive season around the corner. Freight rates are falling at rates higher than even during the global crisis time 2008-09. With no signs of a stimulus from the government, and given the added complexity of BS-VI implementation, it may be early to call the bottom.