Commercial vehicles are the most cyclical

                                                                 Data Source: SIAM

It is well known that the  auto sector is cyclical as its performance is largely dependent on the growth of the Indian economy. But the degree of cyclicality within segments tends to vary. Chart shows that commercial vehicles (CVs) are the most cyclical as compared to either passenger vehicles or 2 wheelers. And in CVs, the medium and heavy CVs (MHCV) are more cyclical than LCVs. This is largely because MHCVs are largely used for the transportation of various goods across the as well as in construction acitivities and so the performance of these sectors have a large bearing on how the CV industry operates. Indeed, in FY13 so far given the slowdown of the Indian economy, MHCVs have faced the maximum brunt as can eb evined by the dip in volumes.