NEW DELHI (Commodity Online): The recently released Index of Industrial Production (IIP) data has alarmed the commerical vehicle (CV) manufacturers of being hit by production fall in areas like manufacturing, mining and capital goods.
In the first two quarters , the CV makers had resisted successfully the effect of economic slowdown and the sales has grown 20% so far in the current fiscal.
The strong demand for light trucks, continued floating in freight rates and uninterrupted activity in infrastructure development projects in the country has pushed the overall demand of the vehicles, reported Business Standard.
But the major worries of the industry are the high interest rates, rise in fuel price and the slowing economic activity which would affect badly the CV industry. Already the mining ban in Karnataka has impacted business of trucks and trippers.
It is the same case is with the buses, the sales growth has gone down and stood at 60,860 units, as against 61,323 units in the April-November period last year.
Meanwhile, the sales of trucks and buses stood at 499,965 units for April-November against 416,800 units sold in the same period last year.
Tata Motors and Ashok Leyland are the two majors in the commercial vehicles in India .
On BSE, Tata Motors (BSE: TATAMOTORS : 500570 , NSE: TATAMOTORS) was down 2.33% to Rs 175.70 and Ashok Leyland (BSE: ASHOKLEY : 500477, NSE: ASHOKLEY) was down 4.33% to Rs 22.05 on 20th December 2011 at 12:20 IST.
