The Indian truck industry witnessed a 33 per cent decline in truck sales in November owing to a more than 50 per cent drop in multi-axle truck sales, a report by the Indian Foundation of Transport Research and Training (IFTRT) said.
According to the report, a more than 20 per cent decline in cargo and a subsequent 5-6 per cent dip in truck rentals during the month resulted in such a sharp fall in truck sales.
“This decline is (a) direct result of lower cargo offerings, economic slowdown and over capacity of the truck fleet in the country,” the report noted.
Meanwhile, the report said, truckers’ failure to generate working capital from the sale of old trucks and piling up of inventories has been affecting the truck industry.
“The most significant negative development in the truck market has been that transport centres are saddled with huge inventory of over 2.5 lakh heavy trucks awaiting resale and the realisations…,” the report pointed out.
IFTRT has been hinting at a “continuous fall” in truck sales since April this year.