The growth in Automobile sector is the indicator of Chequered Plywood prospect, which is used in making Truck, Bus floors apart from flooring purpose in Railway coach manufacturing. The recent growth trend of leading automobile companies such as Tata Motors, Ashok Leyland, Mahindra & Mahindra etc has indicated a better demand of truck and bus flooring plywood in coming years. A dozen of plywood manufacturers in India produce certified Chequered plywood range, having tested Fire rated properties.
The commercial vehicle industry has been on upswing since last several months. Fundamental growth in demand coupled with continued investments in infrastructure activities has helped boost demand. Expects say the fall in fuel prices and resolution of a cash crunch at non-banking financial companies to bring the automobile industry close to double-digit growth by the end of the fiscal year 2019.
Further, sales at many truck makers were higher in the yearearlier period, when some of the state governments started strictly implementing a ban on overloading of vehicles.”I am continuing to be very bullish. I still feel the market will grow 15%-20% before the year-end,” Vinod Dasari, managing director of Ashok Leyland, told to a television channel. “Even if the fourth quarter is lower than last year, in the worst case, the industry will grow by 15%-20%.”Further, he expects Ashok Leyland to expand its sales volumes by up to 30% in the next fiscal year that begins in April ahead of the new emission regulations that come into effect.
In October, India’s Supreme Court said vehicles that meet the Euro VI fuel standards would be allowed to be sold in the country starting in April 2020. “World over there is usually anywhere between 25% to 50% jump in buying before the Euro-VI standards set in.”
Furthermore fleet buyers are also apprehensive about the new emission norms that will kick in less than 18 months. This will push up prices significantly. Meanwhile to intensify competition and gain market share companies have been pushing products at a discount.