The Voluntary-Vehicle Modernisation Programme (V-VMP) announced by the Union ministry of road transport & highways can boost commercial vehicle (CV) sales volume by 65% in the next three years, as compared to fiscal 2016, says a study. Nearly 6.8 lakh CVs worth R66,500 crore were sold in fiscal 2016. The V-VMP scheme could lead to incremental sales of 4.4 lakh CVs (primarily M&HCVs) worth R66,000 crore, an analysis done by Crisil Research said.
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In addition, two lakh CVs would get scrapped and replaced in the normal course through FY18-20, given the current junking rate of 67,000 CVs annually. Hence total vehicles opting for the scheme would be 6.4 lakhs. More than 85% of the incremental sales would be of medium and heavy trucks because of their lifespan of 20 years.