#1 2020-08-29 20:25:23

From: United States, Grand Rapids
Registered: 2020-08-29
Posts: 1

The post COVID-19: CV & Road Transport Industry Update

The recent outbreak of virus has disrupted CV & Road Transport industry which are the back bone of the  Economy.
To know more about the challenges faced by the industry please read below.

Logistics and Transportation are the backbone of the economy

and in these challenging times, vehicles need to be running to transport essentials.
However, as per news reports, only 20% of the trucks are plying national highways.
While, low number of trucks on the roads was due to the fact that many industries were shut amid the lockdown.
However, other problems remain with respect to supply of non-essential items remaining disrupted, driver and labour shortage, inadequate on ground facilities, pressure / harassment from authorities and problems in plying vehicles from one state to another.

Transporters continue to seek Government intervention for relief

including extension of e-way bill validity till May 15, extension of loan duration, curtailment in diesel prices, relaxation in toll and urgent special financial assistance for the transport sector to overcome immediate cash flow problems.

In a survey done by Metric Global and ETAuto.com with Transport Operators

owing to hardships faced by the sector in the current scenario, around 51% of the fleet operators and 40% of the owner-drivers feel that business will not be able to return to normalcy before December quarter of the current year.
Ratings agency ICRA expects CV sales volumes in India likely to contract further between 8-10 per cent in 2020-21 as the near term outlook of the sector is weighed down significantly by the coronavirus pandemic.
The agency said it continues to maintain a negative outlook for the CV segment over the near-term citing slowing economic growth.

Current overcapacity in the CV ecosystem and not so benign financing environment

coupled with weakening financial profile of fleet operators and significant price hikes because of transition to the BS-VI emission norms.
While the outlook for the sector remains bleak, .

There are some green shoots that we are starting to see with the Govt

allowing industrial units in rural areas or outside municipal limits to resume partial operations under strict safety and hygiene conditions from April 20.

Automotive Companies such as Ashok Leyland

Lumax, Setco, Timken, Pricol and Apollo Tyres to name a few have already started production.

To know more about Commercial Vehicle Forum

visit the event website here.
The post COVID-19: CV & Road Transport Industry Update.

Appeared first on Commercial Vehicle Forum 2020




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