The tractor industry had unbelievable quarter with the growth that has not been seen before, which is aided by the fact that the crops have been good, pricing has been good. 

Rural infrastructure development, agriculture, the government’s focus on farmers income and various initiatives have driven the growth in the industry. And with all the products that they have launched in the last three years and the new platforms that they have, they were very well poised to take the advantage of the opportunity that was there in the market place. That has played out very well for them.

The spends on infrastructure is driving the commercial vehicle growth and they have seen good growth for some time now. It is not just coming in this year. The HCV especially will grow because of impending BS-VI from 2020, which will have a huge impact on pricing. And therefore, they would expect that FY19 and FY20 will be very strong year for HCV. 

On the small commercial vehicle, LCV, there is a natural demand pull that is happening because of the various initiatives in industry -- the hub and spoke model, the deliveries, the e-commerce all of that is driving the LCV growth and the LCVs have been growing for quite some time now. So, we are in for one or two very good years in the commercial vehicle segment also. 

SUVs have performed really well in the last three years now and India now has almost 28-29% of passenger vehicles coming from SUVs. Competition has been very intense.

If you look at investment in general, India had overcapacity till recently and normally, one starts seeing fresh investments coming in when the capacity reaches about 80%. This could be the year when most of the industry, many of the companies will cross that 80% threshold. 

And therefore, they would expect new investments to be announced now. So, the kind of growth that they have seen in various segments, the slowdown that happened say two years before had taken away the capacity -- sort of given a capacity gap in terms of excess capacity and that is what now is filled with good growth in FY18 for many industries and FY19. Many industries are projecting very good growth.

If crude reaches $100 then definitely it is going to be a concern. 

Triggers are first of all, overall economy. Number two, affordability, the affordability in India for automotive products is very high. If you look at our income levels and cost of owning a decent vehicle, compared to say five or 10 years ago, the affordability is very high. So that is a very big positive. The rural infrastructure investment that is happening will drive commercial vehicle growth. 

The aspiration in the rural segment for owning a vehicle and therefore growth in the rural segment also is very high. All the macroeconomic factors which affect demand are all on the positive side. So, if the oil price inflation, commodity price, interest rate, all of these go in the wrong direction together, then obviously it will pull down the demand. But if one or two of these factors go wrong, we have enough other positives happening that will offset the one or two negatives. 

For EVs, The current level of incentives that the government has should continue for 3-4 years more. That needs to continue for 3-4 years more so that the volumes go up to a level where it becomes sort of self-justified. 

Second thing is we need to work on infrastructure for charging which is happening and needs to perhaps happen a little bit more rapidly. 

And the third one is more localisation and therefore incentivising the localisation of all the components that go into electric vehicles. 3-5 years from now, we will not need any government incentives to be able to justify electric vehicles.