Growth in manufacturing sector accelerates April truck sales

Truck sales in April have more than doubled at 104.36 per cent over last year, according to Indian Foundation of Transport Research and Training (IFTRT).

However, sales fell 33.16 per cent over March 2010 due to confusion over the implementation of the new emission norms.

Sales figures for April stood at 22,469 units against 10,995 units in the corresponding month last fiscal. This increase has been attributed to the low-base effect.

High demand month

“The substantial growth in truck sales follows the growth in manufacturing, which leads to an increase in cargo transport.

“Also, in April agricultural produce like wheat procurement and the summer fruits and vegetables add to the high demand for trucks,” said Mr S P Singh, Senior Fellow and Coordinator, IFTRT.

Fuel norms

According to IFTRT, the 33.16 per cent lower sales in the month over the 33,619 units in March is largely due to the implementation of Bharat Stage (BS) IV emission norms in the 13 cities and the delay in the implementation of the BS-III norms for the rest of the country.

In March 2009, 16,868 units were sold.

“There have been negligible production/sales in April of BS-IV compliant trucks and sales virtually constitute of BS II norms trucks,” said IFTRT in a report.

It added that due to the confusion, manufacturers have continued producing the BS-II specification truck chassis.

Multi-axle segment

Meanwhile, among trucks the multi-axle trailer segment showed the highest sales growth of 506 per cent in April, while light commercial vehicles posted the lowest growth of 55.86 per cent.

Source: indiacar.com Source : Business Line (Online Edition) (5/5/2010)