CV Industry Loses Pace

A Reflection Of The Economy In Part, The CV Industry Is Facing An Unprecedented Slowdown.

- Bhushan Mhapralkar

The All India Transporters Welfare Association (AITWA) and All India Motor Transport Congress (AIMTC) recently announced that they have put on hold purchase of new trucks looking at the current business environment. Their announcement comes at a time when the CV industry is witnessing a steady drop in sales for the last eight months. A look at the SIAM production, sales and export report makes it clear. The SIAM report for July 2019, for example, reported a (-) 25.71 per cent decline in CV sales at 56,866 numbers as compared to 76,545 units in July 2018. As it loses pace, the CV industry is resorting to ‘no-production’ days. Re-aligning production and refraining from loading dealers, it is hand holding the suppliers.

With a slew of interest rate cuts by Reserve Bank Of India (RBI) failing to entice businesses, the current environment is seeing transporters grapple with falling demand and rising operating costs. On the condition of not revealing his name, a transporter from Delhi expressed that demonetisation and hasty implementation of GST seem to be at the root of the current situation where demand has shrunk anything. Stating that the business environment is very bad, he rued that hurdles have gone up. The transporter pointed at the news regarding a truck driver from Noida. He was allegedly beaten to death by seven bouncers, claiming to be a part of the flying squad at the toll booth at Yamuna bridge in Kalindi Kunj, Delhi, for not paying toll tax.

Tax woes