* Mumbai - The lull in core sectors has forced transport companies to put expansion on hold until a broad-based recovery takes root
-- Mumbai-based transport company Caravan Roadways owns 200-odd trucks and its fleet size has remained the same for the last three years, though it has been replacing old ones. It has no plans to expand its fleet unless demand for transport services picks up substantially, said its chairman N.L. Gupta, adding that his trucks are not idling but the waiting periods for return trips have increased... Gupta is luckier than Inderbeer Singh, managing director of Delhi-based ABC Transport Co. Ltd, who bought 16 heavy duty trucks in the last one year, expecting greater freight movement and better rates. While it has not happened so far, his firm’s costs, such as tolls, drivers’ salaries and insurance premiums, have gone up, and it is now “incurring losses”.
Weak demand has driven owners of medium and heavy duty trucks to this situation, forcing truck makers to offer steep discounts of Rs.1.5-5.5 lakh... The bigger issue facing transporters, said Tata Motors’ Pisharody, is finance availability. Owing to the last two years’ slowdown, the net worth of transporters has eroded, making financiers wary of lending, even though there are few defaults...
(Photo: Saisen/Mint - Since May 2014, cumulative sales have gone up 24% to 210,410 units, according to data from companies and the Society of Indian Automobile Manufacturers, an industry lobby) -- Mumbai, India - Live Mint/Daily Newsletter, by Shally Seth Mohile - 5 June 2015Labels: trucks markets worldwide
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