Commercial vehicles and GST

Commercial vehicle makers report a surge in sales as online sellers and logistic companies consolidate warehousing solutions.
  • The rise in E-commerce has led to a rise in the sales of trucks.
  • Commercial vehicles makers Tata Motors, Ashok Leyland, and Mahindra Truck and Bus report an increase in sales.
  • Traction has shifted from lighter to heavier vehicles.
  • Tata Motors, the biggest commercial vehicle company reported a 20% rise in sales in the first 8 months of the current fiscal year.
  • Its rival Ashok Leyland has reported an increase in sales since September.
  • All this is because of the rated load* regime and the hub and spoke model*.
  • Other than that, the allowance of 100% FDI in single brand retail will also lead to higher sales in the e-commerce industry in turn leading to a significant growth in the transport industry.
  • The logistics sector is expected to grow by 48% by 2020.
Although e-commerce scarcely contributes to the domestic freight transport, the figures are changing rapidly and the potential is huge. The market shift is certain. Offline to online will mean a better market condition of the online sellers and in turn the logistics sector.
*rated load – the load a machine is designed to carry as usually stated on the nameplate in appropriate power units (as of horsepower for motors and engines or of kilovolt amperes for alternating-current generators)
*hub and spoke model – the spoke-hub distribution paradigm is a form of transport topology optimization in which traffic routes are organized as a series of ‘spokes’ that connect outlying points to a central ‘hub.’

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