Tractor industry may register high single-digit growth

According to a recently released report by the credit rating agency ICRA, the sales of tractors in the current fiscal is expected to reach to a high single digit trajectory despite Covid led setbacks in the initial months. With agriculture projected to be the only performing segment of the national economy, the demand for tractor sales is likely to consolidate after strong reversal signs witnessed in August. Shamsher Dewan, Vice President, ICRA, said, “The strong revival in tractor volumes in the month of August’20 were aided by healthy rabi cash…

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Port sector witnesses early signs of recovery

According to a recent report by leading rating agency ICRA, the port sector has shown some strong recovery signs in the month of July after witnessing modest decline in volumes in the early months of this fiscal following covid-19 triggered lockdown. “The Indian port sector witnessed sharp contraction during Q1 FY2021 due to the impact of Covid-19 pandemic and containment measures adopted by the Government   While, the Major Ports witnessed ~20% decline in Q1 FY2021, the Non Major Ports declined by 24% during the same period. However, in the month…

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Digitalization to drive Indian Logistics Post-COVID-19

Leading consultancy and research firm Frost & Sullivan has recently unveiled a report, Post-Pandemic Growth Opportunity Analysis of the Indian Logistics Industry, which maintains that while the strict containment measures in the country have ensured that the sector will witness only marginal growth in 2020, they have also created new opportunities for digitalization across the logistics value chain. “Digitalization and technology adoption is expected to gain traction during the post-pandemic recovery phase, which is expected to drive the Indian logistics industry to grow at a CAGR of 7.2% between 2019 and…

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ICRA downgrades Indian logistics sector

Credit rating firm ICRA has revised the outlook on the Logistics sector from ‘Stable’ to ‘Negative.’ In its report released last week, the agency has cited restrictive measures initiated to combat Covid-19 early this year adversely impacting domestic logistics sector especially its road transportation vertical. Shamsher Dewan, Vice President, ICRA Ratings, commented, “The implementation of nationwide lockdown to contain the Covid-19 spread resulted in disruption in supply-chains across sectors, restrictions on cross-border movement and dearth of availability of drivers and thereby led to contraction in revenue of the logistics sector…

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Spike in fake products meant to combat Covid-19

The Authentication Solution Providers’ Association (ASPA), a self-regulated industry body of Anti-Counterfeiting and Traceability Solutions providers, has unveiled the first edition of its report “The State of Counterfeiting In India – 2020”. The report highlights the trends of counterfeiting incidents reported in India for the period 2019 and 2018. According to the report, counterfeiting incidents have risen steadily in the last few years and in 2019 these have increased by 24% as compared to 2018. The key findings of the report are as follows: –       The number of counterfeit incidents in India increased by 24% between 2018 to…

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Negative outlook for commercial vehicle industry

Noted credit rating agency ICRA, in a recently released report, has maintained negative outlook for the commercial vehicle (CV) segment over the near-term. The agency has cited a host of stress factors for the business including financing availability, macroeconomic environment, regulatory developments,  fleet operator health and coronavirus led disruptions in the marketplace. “The only limited green shoot visible is the uptick in rural demand, which augurs well for the LCV (Truck) segment, although ability to recoup lost sales of Q1 FY2021 remains to be seen. Accordingly, the domestic CV industry…

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Global flight volumes continue to recover

SITA, the technology provider for the air transport industry, recently released a new paper outlining the company’s vision for the immediate future of air travel. SITA’s ‘Runway for Future Operations’ report details the steps required for the air transport industry to deliver safer, smarter, and leaner air travel and recover from the unique economic challenges of COVID-19. The paper follows the release of new SITA data showing that despite falling significantly, global flight volumes continue to recover. SITA’s data shows that flight volumes dropped 69% year-on-year in June, significantly better…

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Projection for hybrid and electric vehicle segments

Frost & Sullivan’s recent analysis, Global Powertrain Outlook, 2020, finds that global automotive sales are expected to decline by more than 14.2% due to COVID-19 by the end of 2020 as manufacturing facilities and supply chains are affected by worldwide lockdowns. However, this slowdown is not expected to have an impact on consumer purchase trends. Demand for diesel engines is expected to decline in Europe by 30% by the end of 2020 as Worldwide Harmonized Light Vehicles Test Procedure (WLPT) commences, while global electric vehicle (EV) sales are forecast to increase…

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Double-digit revenue decline for auto-component industry

According to a recent report released by noted credit rating and research firm ICRA, weak demands resulting from Covid-19 pandemic would lead to a decline in revenue for the auto component industry in the range of 14-18 percent in FY2021. “Automobile volumes are expected to decline by 15-16% in FY2021; within this passenger vehicle demand will decline by 22% to 25%. The year will be tough for the commercial vehicles too, given the slowing economic growth, current overcapacity in the CV space and tight financing environment amidst price increases due…

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Global warehouse automation market to double in size

Frost & Sullivan’s recent analysis, Opportunities of Autonomous Delivery Robots in Warehouse Management, finds that the global warehouse automation market is expected to nearly double its size, expanding from $14 billion in 2019 to $27.2 billion by 2025. The automated guided vehicles (AGV) segment is forecast to hit $4.6 billion while the autonomous mobile robot (AMR) segment is expected to reach $6.8 billion. The degree to which the COVID-19 pandemic will impact the industry will vary considerably by region and by vertical sector. In developed countries such as the US and China, the recovery time…

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