Truck makers face GST overload; Tata Motors, Ashok Leyland sales decline

Sales of medium and heavy commercial vehicles declined 1% in 2016-17 to 255,267

The goods and services tax (GST) has caused a slowdown in demand for commercial vehicles as transporters grapple with a fall in haulage rates.

Medium and heavy commercial vehicles have been the worst performing segment of the automobile industry in the April-June quarter, with a 32 per cent contraction in sales to dealers. 

The two top players, Tata Motors and Ashok Leyland, reported double-digit decline in sales. 

“There has been a decline in haulage rates since the imposition of the GST. Almost 20 per cent of the logistics industry’s fleet is unutilised. Unorganised players are not yet on board with