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The Fleet Operators Are Experiencing a Sluggish Market in the Country

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The fleet operators are experiencing a sluggish market in the country
In the financial year 2012, the commercial vehicle industry is undergoing a major slump. Sale of commercial vehicle in India has been reduced to a great extent and affects the profit margin of fleet operators.
This is due to some factors like hike in diesel prices, recession in demand, flat freight rates, high interest rates are, lack of foreign investment, turn down in the movement of goods from agriculture to manufacturing to export-import etc., which are mainly responsible for the slothful demand of Heavy Commercial Vehicles.
As per the report of the Indian Automobile Manufacturers Society, sales of medium and heavy commercial vehicles reduced to more or less 23% on-year whereas the total sales for commercial vehicles has been trim down to 2%.
Ashok Leyland, the leading commercial vehicle maker, has also witnessed a 23% fall in their net profit for the financial year at Rs. 433 crore. Bharatbenz is likely to sell only about 150 - 200 trucks a month between 25 & 31 ton trucks and tippers (4 models).
In the last financial year the level of sales has been affected owing to unfavorable monsoons resulting in slow-moving industrial output. In this fiscal year, it is expected that the market condition will not be improved for truck-owners and commercial vehicle makers as there will not be any kind of crucial fleet development program.
Though there were additional supplies of fleets in the market but still industrial output and truck rentals were not increased significantly in the last financial year. Truck rentals slipped 1.5-3% in March and were losing around 8% for the just-ended fiscal year. The usage of trucks especially the heavy-duty commercial vehicles were also reduced very much.
Defaulters for commercial vehicles loans are increasing at alarming rates as fleet operators find it

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