Trucking News

COMMERCIAL VEHICLE DEALERS ARE FACING ALMOST NO-INQUIRY CHALLENGE

The demand for the medium and heavy trucks in particular, continue to be very low as a maximum project of construction and industrial activities have started only with limited operational capacity

D Yadav || Trucking News India || 5 July 2020

New Delhi: After the complete shut down due to Covid 19 slowly and gradually businesses are getting open up but demand of the sales of commercial vehicles yet to revive the dealers all across country have no clue when the demand will revive, as of now they are facing the most difficult situation of no enquiry from costumer for commercial vehicle purchase.

It has been observed that passenger cars and two-wheelers have shown early signs of sales happening in last month.

The demand for the medium and heavy trucks in particular, continue to be very low as a maximum project of construction and industrial activities have started only with limited operational capacity

Commercial vehicle dealers are facing almost no-inquiry challenge

Tata Motors reported 89.6 percent year-on-year (YoY) decline in volume for Q1 of FY21, other prominent players like Ashok Leyland, M&M and VECV have reported declines of 81.3 percent, 36.5 percent and 70.7 percent Y-o-Y last month, respectively.

As you go deeper into the conversations with truck dealers you will find that post lockdown period there is a clear down fall of sales and still there is no enquiry for commercial vehicle from customers.

Industry is facing double challenge, industrial output is low therefore not enough loads are available to transporters, so, excess capacity with transporters are available and this lead to put on hold for any new purchase of CV.

Other areas of concern are the recent hike in fuel prices and increase in vehicle prices by 20-30 percent post BS-VI switchover with dealers telling

Dealers use to sell around 200 trucks per month even in during slowdown of economy.

However, with sudden surge in fuel prices dealers saw an unusual increase in cancellation of heavy truck orders in recent time. For trucking industries there is a testing time ahead. Govt must act swiftly to boost the economy so that millions of people connected to trucking can sail through effectively in this Corona time.

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