Domestic truck sales seem to be mirroring the current slowdown.
Thanks to slow industrial activity and goods movement, medium and heavy truck sales have fallen 18% to 71,456 so far in the current fiscal year.
Fearing a further decline in demand, manufacturers have also slashed production by 27% to 74,000 during the April-July period.
Market leader Tata Motors seemed to be the worst hit, with its medium and heavy commercial vehicle sales falling 22% during the period.
"The low GDP rate is one reason," said Ravi Pisharody, executive director, Tata Motors. "Certain sectors are facing challenges. For instance, the mining sector is in a standstill, affecting truck sales in a big way."
With goods movement also decreasing, truck rentals have gone down by as much as 11-13% in the current fiscal year.
This has resulted in truck operators turning away from dealers despite discounts of up to Rs. 2.5 lakh and finance schemes offering 5.5-6.5% interest rate, said SP Singh, co-ordinator, Indian Foundation of Transport Research & Training.
"If the freight market does not improve, there is possibility of repossession of delinquent trucks," he said.
During the downturn in 2008-09, more than 40000 trucks were repossessed for non payment of loan by fleet owners.