According to sources, the sales of medium and heavy-duty commercial vehicles have dropped by 60% in the month of August. This happened because transporters are facing issues with excess capacity, which is leading to economic and consumption slowdown. Moreover, India’s economy has risen by five percent in the June quarter, the slowest in over six years. And additionally, the manufacturing sector has been growing at a terrible rate, which is 0.6 per cent only.
Tata Motors president for commercial vehicles, Girish Wagh said, “A subdued demand sentiment due to poor freight availability, lower freight rates, and a general slowdown in the economy continued to hamper the commercial vehicle demand. We are looking forward to a positive impact of the recently announced stimulus package by the government.” In addition to it, he also stated that Tata Motors is likely to focus on retail and the retail sales were in an advanced position to the wholesales by approximately 25 per cent.
Moreover, volumes at Mahindra & Mahindra and Volvo-Eicher Commercial Vehicles dropped to 69 per cent and 41.7 per cent, respectively. The president of the Society of Indian Automobile Manufacturers (Siam), Rajan Wadhera stated, “The truck industry is in a very bad condition. It’s a desperate situation. Discounts of Rs 8,00,000 to Rs 9,00,000 are unheard of. Don’t think sales will improve unless consumption revives and the economy improves.”
If we compare the situations with the previous year's numbers, the overall volume at India’s top four M&HCV makers fell 59.5 per cent, i.e, 31,067 units during the month. The four manufacturers include Tata Motors, Ashok Leyland, Volvo-Eicher, and Mahindra & Mahindra. The brands are now hoping to gain sales in the festive season. The recent flood is also responsible for the drop in sales as it became a hurdle in the path of truck fleets.