Price of trucks will raise

Truck majors like Tata Motors and Ashok Leyland are going for a price hike, third since January, they are learnt to have resisted any price hike from component players that supply tipper and body parts to the commercial vehicle makers.

Truck have been under pressure for the last few months, especially the higher tonnage vehicles, such as concrete mixture,Tipper,trailer,tractor,tanketc. The last two months (April and May) saw light commercial vehicles grow by 9%, while the medium and heavy CVs (passenger carriers) fall by 5%.

Lack of finance and high interest rates have seen many fleet operators postpone purchases, sources said. They indicated that truckmanufacturers are being forced to cut production or maintain flexibility in the manufacturing line, so that inventory pile-up does not take place.

Indications are that truck across the country have been asked to pick up stocks before the price increase takes place. Sources indicate the steel component suppliers, who provide tipper and bus body parts to the truck manufacturers, are being forced to sell at the earlier contracted rates of around Rs 36,000 a tonne, even as they buy steel at Rs 48,000 a tonne, the current market price.

“While volumes may be high, the manufacturers are dictating terms on price since the last few months,” said a major steel component supplier. On conditions of anonymity, one of the major suppliers said that if the prices are not revised, they may be forced to shut shop.

Steel component suppliers have seen prices surge by about 20-30% in the past two months, as steel companies raised their prices following an increase in iron ore and coal prices.

The rates are expected to go up further as Australian iron ore firms have forced Chinese steel mills to revise the earlier contracted price hike of 67%, due to higher shipping freights. NMDC, the state-owned iron ore company, is also expected to hike rates soon. Sources say steel prices are likely to go up to Rs 56,000- Rs 58,000 a tonne soon. So the price of dumper and the tank trucks will also raise.

Labels:Truck,dumper,china truck,HOWO,concrete mixture,Tipper,trailer,tractor,tank