Price of
trucks
will raise
Truck majors like Tata Motors and Ashok Leyland are going for a price hike, third since January, they are learnt to have resisted any price hike from component players that supply tipper and body parts to the commercial vehicle makers.
Truck
have been under pressure for the last few months, especially the higher tonnage vehicles, such as
concrete mixture
,
Tipper
,
trailer
,
tractor
,
tank
etc. The last two months (April and May) saw light commercial vehicles grow by 9%, while the medium and heavy CVs (passenger carriers) fall by 5%.
Lack of finance and high interest rates have seen many fleet operators postpone purchases, sources said. They indicated that
truck
manufacturers are being forced to cut production or maintain flexibility in the manufacturing line, so that inventory pile-up does not take place.
Indications are that
truck
across the country have been asked to pick up stocks before the price increase takes place. Sources indicate the steel component suppliers, who provide tipper and bus body parts to the truck manufacturers, are being forced to sell at the earlier contracted rates of around Rs 36,000 a tonne, even as they buy steel at Rs 48,000 a tonne, the current market price.
