New Delhi, May 20 (IANS): The Centre's initiatives to accelerate infrastructural projects will aid in the recovery of commercial vehicle (CV) industry, said consultancy firm Grant Thornton Bharat.

According to the firm, other initiatives like introduction of 'Vehicle Scrappage Policy' will provide support to the new age 'green, safe and efficient' vehicles.

Besides, it pointed out that 'Production Linked Incentive' (PLI) scheme will play a major role in reviving the sector.

The scheme extended its benefits for investments ranging in crores to support the companies participating in 'Aatmanirbhar Bharat' and contributing to India's exports to attract more investments.

"CV is critical to the economy and the steps taken by the government will help the growth of the sales volumes to bounce back by FY2021," the firm said in a report.

"A healthy and financially strong CV industry may lead with initiatives that would help in transforming the logistics and transportation sector, which is key to India's rapid economic growth."

Last fiscal, the CV industry witnessed a 20.77 per cent y-o-y drop in sales.

The firm cited factors such as the non-banking financial institution (NBFC) crisis and transition to Bharat Stage (BS)-VI increased the pressure on the sector.

Furthermore, the Grant Thornton Bharat Auto Bytes report for the month of May, pointed out the future of India's CV industry is likely to be shaped by trends such as 'telematics, electrification, evolving regulations, IoT and big data, benchmarking global standards, higher tonnage vehicles and advanced driver assistance systems' (ADAS).

"Overall, the crisis has given an opportunity to redesign business processes with an extensive use of new emerging technologies and thus paves the way for innovation," said Saket Mehra, Partner, Grant Thornton Bharat LLP.

"As digital retailing witnesses growth, OEMs and dealers will need to plan their strategy in stages for a seamless transformation."