New Delhi, June 17 -- The US-Iran peace deal has triggered a sharp decline in crude oil prices, raising expectations of easing domestic petrol and diesel prices. A sustained reduction in diesel prices could provide a significant boost to India's commercial vehicle (CV) industry by improving fleet operator profitability and enhancing visibility on vehicle purchase decisions, analysts said.

According to Kotak Institutional Equities, lower fuel costs, coupled with continued government infrastructure spending, replacement demand from an aging vehicle fleet, and healthy fleet utilization levels, are expected to support underlying demand in the domestic commercial vehicle segment.

The brokerage expects growth in the domestic medium and heavy ...