Truck rental has declined by nearly 10 per cent across India as stocks have piled up in the last few days in factories in the southern region. While the South is a major production centre, North is a major consumption market, said sources.

“Fifty of my trucks are lying idle at various locations,” said Rajinder Singh, Managing Director of the Chennai-based Janta Roadways.

Companies are in a wait-and-watch mode before the implementation of GST. This is affecting truckers, he told BusinessLine .

GST fears In the truck hub of Namakkal in Tamil Nadu, a trucker said the market is dull.Wholesalers and traders have curtailed lifting of inventories due to GST migration fears.

This has caused a drop in cargo offerings for wholesale markets across the country, said SP Singh, Coordinator, Indian Foundation of Transport Research and Training.

Monsoon effect Due to the monsoon, vegetable and fruit supplies are expected to witness a routine drop. The trade and commerce reeling under GST shift will be concerned about managing their inventories to avoid any major loss due to stock transfer impact on their businesses, he said.

Truck rentals may further weaken for a few days and it will have a direct impact on truck fleet induction and replacement for medium and heavy commercial vehicles. Heavy truck sales have been less than half in May in comparison to the same period last year with resistance to high priced BS-IV vehicles, existing over supply of National Permit truck fleet and fear of the unknown on the improved fleet utilisation post GST regime.

This promises hassle-free movement of goods across the country and fleet owners are cautious on BS-IV truck purchases, he said.

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