Transportation contributes to the Economic, Industrial, Social and Cultural developments of any country. Transportation forms the backbone of any countries economy. India has one of the most extensive transport networks in the world.
Industry Overview
Indian Goods Commercial vehicles and business economy in India :-
Transportation requires different vehicles to make transport of goods, passengers or any other thing. Without proper vehicles, transportation is not possible. Vehicles with good quality rates are important for a long term transportation business plan. They can be anything starting from cars, trucks, ODC Cargo trailers or any vehicle used for transportation. But in India, the scene is totally different. Vehicles produced in India is not so good in quality. The rate of transport vehicles are increasing continuously but there is no significant increase in the quality of vehicles.
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Domestics Interstate business Ignorance Priority and efficiency Only Export goods commercial vehicle business :-
Every country focuses more on the quality of vehicles for the safety of goods of passengers. Even in India, the vehicles which are supposed to be exported are made in keeping the best quality in mind but the vehicles which are to be sold in India are of poor quality. Even the prices of export vehicles are kept low as compared to its high quality. While for vehicles which are to be used in India prices are kept high as compared to its quality.
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Security is deliberate than the goods commercial vehicle standards :-
There is a test to check the quality of goods vehicles manufactured. During this, the vehicle is forced to hit the barrier at some speed and the record of crash force is noted. They are given a ranking from 1 to 5 stars. This is carried out to check the if the vehicles are able to sustain from some heavy accidents or not. In India most the vehicles cannot pass this test or their rating is below 3 but still, they are allowed to run in the roads. If the same vehicle is to exported to foreign countries they are manufactured such that their test results are almost 5 stars.
Transporter’s black blank meaningless Future and Certain Goods Commercial Vehicle Business :-
Truck transporters and other owners of passenger vehicles face heavy loss due to this. They buy vehicles to use in their transport business by taking loans from the bank or any other source. But due to the poor quality, vehicles get degraded within 4-5 years of use. Then have no choice instead of keeping their vehicles away from the business. Now they don’t earn from this degraded vehicles but they still have to pay installments to banks or other finance companies. They face heavy loss due to such kind of stuff. Many accidents happen in which many people losses their life due to the poor quality of vehicles.
Government unethical bias with goods commercial vehicle transport businessmen :-
The government can take some major steps against it but in so many years no such initiative has been taken by any government. Many people say this is the monopoly of the government, the manufacturers and even the finance companies. Government has implied bunch of taxes from buying a vehicle, registering it and even after making it run on the road. Vehicles manufacturer also asks huge tax on the vehicles and set the price higher. But the quality of the vehicle is never met as per the amount spent to buy a vehicle. In the third phase finance companies or banks take lot of charges on the vehicles or other taxes and even increasing the price of vehicle. This banks and private finance companies takes almost everything front the customer in buying the vehicle. The transporter spent all of its saving in buying the trucks or other transport vehicle like ODC trailers. The condition of India is such that no business can perform well throughout the year. Due to some reasons, maybe it is GST or demonetisation or any natural calamity the business does not go well and the owner cannot pay one installment, the private companies will tow the vehicle with its cargo. He loses everything after losing his earning source. He only pays installments for next 2-3 years without even earning.
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Goods Commercial Vehicle Manufacturing price and Indian freight third class level :-
The vehicle price has significantly increased from years but the cost of transportation has not been increased respectively. In 2004 the truck whose prices were about 6 lakh, in 2016 they were sold at 16 lakh and in 2019 they are going to be about 19 lakh. The increase in prices from 6 lakh to 19 lakh in the last 14 years is about more 3 times, but compared to this the cost of transportation has not increased much. In 1990 the cost of transportation from Bellary to Mumbai was about 1000 RS per tonne and in 2018 the rate is almost the same. The truck prices increased up to 3 times but the cost of transportation is almost the same.
Meaningless useless government policies for goods commercial Vehicle India :-
The government has not been in favor of transporters anytime. Even after collecting different kinds of taxes from truck owners, no improvement in the vehicle quality is maintained. There is no meaning of collecting various taxes and not giving proper output. Nobody is against tax but if they get some benefits derived from those taxes they would be happier. The government can decrease the loss of transporters if they increase the subsidy given on diesel. In present subsidy is given on diesel to every vehicle. But if this is changed and subsidy is provided to only transport vehicles it would be great. This would reduce the cost of transportation for transporters and in result, the daily items transported through trucks would also see a cut in its prices. This reduction will benefit the common people and increase their living standard to very little extent.
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Overall when we look at the situation of transporters they are always helpless. From buying an vehicle at heavy price and then handling the transport business with so many problems is not an easy task. Their money spent on buying an vehicle can be worthy if the quality of vehicles is maintained. But we all know what’s the condition manufacturing goods vehicles for Indian market. Even government and private finance companies takes advantage of transporters situation and imposes heavy duties and taxes. Government should make some strict criteria for the vehicles manufactured for India. The vehicles below the decided criteria should not be allowed to launch in the market. By doing this manufacturer will be forced to maintain good quality vehicles.
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