premium September 18 2017

Commercial Vehicle and Construction Equipment Lending–Managing Asset Credit Risk

Programme Background and Objectives


Over the past few decades, the share of road transport in the total surface traffic movement in India has been gradually increasing with a distinct shift away from the railways being observed. Most recent estimates give the road mode a share of nearly 70 per cent in freight movement compared to its share of just about 10 per cent in the early fifties. The percentage is likely to move up to 85 Percent given India’s road Infrastructure and logistic improvement plans together with accent on manufacturing growth. This will drive demand for new and old commercial vehicles with increasing need for specialty haulage vehicles and attached vehicles with large and medium logistic operators. Coupled with new emission norms driving new vehicle demand the opportunities in the sector are growing. 

     

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