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.’