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Old 15th August 2012, 17:56   #1
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Default Truck sales drop as industrial activity slows down in India

Truck sales in India dropped for the fourth straight month on account of the slowdown in the country’s economy and industrial activity. Consequently, heavy vehicle manufacturers have also slashed production in the face of piling inventory with their dealers.

With the entire auto industry facing a crunch, the M&HCV (Medium and Heavy Commercial Vehicles) segment has been particularly hit, with sales down by 17.5% to 71,456 units in July.

India’s largest commercial vehicle manufacturer Tata Motors saw a decline of 23% in M&HCV sales for the first quarter (April – June 2012) of the current fiscal. Ashok Leyland also recorded a 12.5% fall for the same time period.
A number of factors have contributed to the downfall in M&HCV sales. India’s economic growth for April-June 2012 is expected to fall below 5%. The national industrial production also contracted to 1.8% for June. Goods movement from agriculture to manufacturing to export-import are on the decline as well, affecting the transportation industry.

The uncertainty has made fleet owners and transport companies unwilling to invest in newer fleets to replace older ones. This despite dealers offering discounts of up to Rs 3.5 lakh and schemes with low interest rates. They also fear for loan delinquency and repossession of their fleets if the freight market does not improve soon. During the 2008 economic slump, more than 50,000 trucks were reportedly repossessed for non-payment of loans.

On the upside, the Light Commercial Vehicles (LCV) segment continues to be one of the fastest growing segments in the country. Tata Motors and Ashok Leyland posted healthy growth in LCVs for the first quarter of this fiscal. As consumer goods movement is expected to grow in the urban areas, the sales of LCVs are expected to post double-digit growth in the current fiscal.
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Old 5th November 2012, 13:03   #2
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Default Trucks hardly selling despite incentives

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Sales of trucks and buses in the country dropped 24% in October despite huge discounts and a bevy of launches.
Indeed, the month, considered significant for the industry on account of the festivals, saw discounts of up to Rs2 lakh a vehicle, depending on the model.
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Ashok Leyland increased its discounts from Rs45,000 to Rs55,000-60,000 on trucks during the second quarter, said an analyst, who did not wish to named.
...According to S P Singh of Indian Foundation of Transport Research and Training (IFTRT),the intermediate commercial vehicle (ICV) category, which includes trucks in the 8-14 tonne range with Tata Motors and Eicher as the major players, saw discounts of up to Rs1.5 lakh.
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Even new launches from Tata Motors and Bharat Benz failed to create an excitement in the market, said the experts.
http://www.dnaindia.com/money/report...ntives_1760188
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Old 5th November 2012, 19:19   #3
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Default Re: Truck sales drop as industrial activity slows down in India

Hope the economists don't take the I out of BRIC soon !


Toyota has this famous way of building vehicles according to demand, so they virtually have zero inventory ( i think it's called just-in-time?). Why don't the truck builders follow that to lessen inventory pile up?
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Old 5th November 2012, 20:46   #4
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Default Re: Truck sales drop as industrial activity slows down in India

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Originally Posted by D33-PAC View Post
Hope the economists don't take the I out of BRIC soon !


Toyota has this famous way of building vehicles according to demand, so they virtually have zero inventory ( i think it's called just-in-time?). Why don't the truck builders follow that to lessen inventory pile up?
All your Just In Time - JIT ends till the production. Every manufacturer has a good number of inventory for finished goods. Toyota is no exclusion here - Just look at the number of vehicles in dealer's yard. Those all are pushed by Toyota!
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Old 6th November 2012, 09:13   #5
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Default Re: Truck sales drop as industrial activity slows down in India

I think there is a lot of re-consolidation happening in the Market
- The 31 tonne category is emerging as the winner in Trucks, all the others are taking a beating, and also the 1 tonner is growing - last mile connectivity
- In long distance busses, the multi-axle is quashing out all competition

The numbers of vehicles on the road might be decreasing, but the number of passengers and goods transported has increased
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Old 7th January 2013, 13:47   #6
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Default Re: Truck sales drop as industrial activity slows down in India

To boost the sale of trucks ,Tata Motors doubles warranty period on Heavy Trucks to 4 years.

Tata Motors has introduced an unbeatable warranty of 4 years, on its entire range of heavy trucks with 25 tonnes and higher GVW (Gross Vehicle Weight). With this, Tata Motors has become the first company in India to offer a standard warranty of 4 years on heavy trucks, a clear reflection of the reliability and durability of Tata Motors trucks. The 4-year warranty, applicable on the full range of tractor trailers, multi-axle trucks & tippers of 25 tonnes GVW & above, covers the vehicle’s driveline (engine, gear box & rear axle) as a standard offer. In addition, the warranty on the rest of the vehicle has been enhanced from 18 months to 24 months.

The 4 year’s standard warranty is applicable on vehicles sold after 6th Jan 2013.

http://www.wheelsunplugged.com/news/...ks-4-years/775
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Old 8th January 2013, 12:40   #7
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Default Re: Truck sales drop as industrial activity slows down in India

Added to the general slow down in the economy, uncertainty in mining industry and lack of spending in infra projects (road sector mainly) has contributed the lower uptake of HCVs.
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Old 9th January 2013, 15:52   #8
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Default Re: Truck sales drop as industrial activity slows down in India

Even after many months, Bharatbenz seems to be retailing only about 150 - 200 trucks a month between 25 & 31 ton trucks and tippers (4 models). Either this clearly shows the market slowing down or Bharatbenz taking it slow to see how their trucks actually perform in the field.

Recently also noticed their LCV/ICV, the 1214 doing the rounds with certain operators with yellow plates.
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