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Rajasthan Leading the Way for Heavy Truck Sales in North India

Published On Jul 25, 2016By Prashant Talreja

While the heavy truck sales have clocked back to the top, Rajasthan has emerged as one of the best places to buy commercial vehicles. Even buyers from the neighbouring states are coming down to Rajasthan to buy the trucks. The reason behind these sales is low Value Added Tax (VAT) in the state. In the current budget, the Rajasthan government cut the VAT by 2 percent, making it lowest in the region, hence people from Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and other regions are making a beeline to purchase heavy vehicles from the desert state.

Commenting on the VAT percentage, a government official said, “There has been boost in sales as VAT was reduced by 2% in budget. This made the total sales tax one of the lowest in the region.” The profits which stood at INR 700 crore in the Q1 of current fiscal year from transport sector has majorly benefited from these heavy duty truck sales. The state official also said, “We asked them to publicize about the taxes in Rajasthan. Since it is niche market, we identified major buyers like transporters, those in constructions and even government bodies. As information spread, buyers from across North India started visiting to buy trucks.”

These heavy duty truck sales are also expected to grow more in the remaining quarters of the current fiscal year. The industry has already estimated the sales of 2.80 lakh heavy duty trucks. Some major names like Ashok Leyland, Tata Motors and Mahindra are too planning to increase their sales in the region with new products launch.

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