The Hindu Business Line : Truck sales hit the bump, decline 73% in Dec

Mumbai, Jan. 6 In line with the sharp drop in cargo movement, truck sales plunged 73.5 per cent to 6,221 units in December 2008 against 24,222 units logged in the same month the previous year, according to the Indian Foundation of Transport Research and Training (IFTRT).

Apart from excess capacity build-up, the 25-30 per cent fall in cargo movement due to the general economic slowdown has hit truck sales, said Mr S.P. Singh, Senior Fellow and Coordinator, IFTRT, an independent body doing research in the field of transport.

Tractor-trailers of 30-49 tonne range witnessed a maximum drop of 94.7 per cent in December sales at 114 units (2,143 units).

They are mostly used to transport high-density cargoes such as cement, fertiliser, timber, ores and steel predominantly to railways for further transportation.

Sales of multi-axle vehicles of 25.2-31 tonne sunk 79 per cent to 2,033 units ( 9,587 units).

Hit by the crumbling infrastructure projects, sales of tipper trucks used mainly in construction dipped 73 per cent to 1,462 units (5,358 units).

Tipper truck sales dipped virtually due to stoppage of construction and infrastructure projects in many parts of the country in the last three months in the wake of financial crunch, said a dealer.

Medium commercial vehicles of 15 tonne to 16.2 tonne witnessed a drop of 72 per cent to 1,635 units (4,159 units).

Sales of these vehicles, used mostly in hilly terrains and narrow highways to carry parcel cargo, have been sinking for quite some time. Sales of intermediate commercial vehicles (8-12 tonne), used by logistic firms, retail stores and for captive purposes in factory and hospitals, plunged 69 per cent to 1,053 units (3,414 units).

The 5-7.5 tonne category light commercial vehicles (LCVs) saw sales dipping 52 per cent to 1,586 units (3,294 units).

LCVs mostly operate on intra-state short haul and intra-district cargo operations and their market share has been cannibalised by new LCVs of sub-one tonne load capacity such as Tata Ace.

In comparison to the huge slump of 1984 and 1988, the drop in sales of commercial vehicles in the last quarter and particularly in December 2008 is most alarming and gives multiple negative signals about the health of the country’s economy, said the IFTRT study.

Related Stories:
Tata Motors commercial vehicle sales dip 51% in Dec
Shriram Transport holds ‘Truck Utsav’
Surprises in vehicle sales numbers

More Stories on : HCV/LCV/Tractors | Trends | Economy

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