Shock Report- Truck sales in India plummet by 73.5% in December ’08
From 24,222 Units to 6,221 Units in one year !
As an effect of the sharp drop in cargo movement, truck sales plunged 73.5% to 6,221 units in December 2008 against 24,222 units in December 2007, according to the Indian Foundation of Transport Research and Training (IFTRT) The decline in truck sales is also said to be due to excess capacity build-up.
- 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) – Mostly used to transport high-density cargoes such as cement, fertilizer, 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).
- Affected by the infrastructure projects in abeyance, sales of Tipper trucks used mainly in construction dipped 73 per cent to 1,462 units (5,358 units) – 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.
- 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 as it gives multiple negative signals about the health of the country’s economy, said the IFTRT study.
Various commercial vehicle manufacturers in India have resorted to temporary plant shut-downs and production cutbacks. OEMs and component suppliers expect it to take at least another six months before commercial vehicle sales get back on the fast track.