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CV growth prospects, regulatory tailwinds to drive gains for ZF India

Higher exports and improving margins on the back of softening input costs are other positives

Used commercial vehicle sales see uptick amid auto sector slowdown
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Ram Prasad Sahu Mumbai
Strong growth prospects in the domestic commercial vehicle (CV) segment, softening commodity prices, higher exports and regulatory tailwinds related to mandatory safety standards are positive for auto component major ZF Commercial Vehicle Control Systems or ZF India (formerly Wabco India). Increased sourcing by the German parent ZF Group is also expected to boost incremental revenue growth.

The key trigger is the domestic CV demand from original equipment makers or OEMs and growth in the replacement segment. The CV segment continues to be the best performer within the auto segment, with the trend sustaining in December. Even as most domestic companies