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Monday 12 May 2014

Prime reasons behind fall in CV sales


While the Indian commercial vehicles segment reports a drop in the sales, it’s time to take a look at the reasons contributing to the fall for a better understanding of the scenario.

1. A steep rise in prices of diesel
Diesel prices witnessed a hike by Rs. 7.50 to Rs. 8 per litre. From Rs. 44.52 per litre in July 2012 to Rs. 51.99 in February 2013, the diesel is now available at Rs. 60 per litre.

2. Growth in tyres price
In a comparison with the last year, the tyre prices have become double. Nylon tyres are now available at Rs. 36,000 a set that were priced at Rs. 24,000, 2 years ago. Radium tyres' cost has risen from Rs. 36,000 to reach up to Rs. 48,000.

3. Hike in toll-gate fee
The toll fee observed more than 30% increase. It reached from Rs. 2.20 per km to Rs. 3.80 per km.

4. Ban on mining
A ban put on sand and other mining activities by the apex court also affected the CV sales.     

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