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An auto-industry recovery appears far away. Vehicle-carrier companies are drastically scaling down.

Automobile-transportation companies are awash in debt, with mounting losses. A key pillar of the auto-sector supply chain, many of them face an uncertain future and are selling off their prime assets – trailers and trucks for carrying cars and two-wheelers. These carriers have a chilling assessment of the ground realities. An auto-sector recovery is far, far away, they say.
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taslima-khan1
15 Jun 2020 12 Mins Read 3 comments
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The fate of an entire industry is hanging by a thread. With losses and debt woes mounting, automobile-carrier companies, big and small, are drastically scaling down operations. Many are even selling a large part of their fleet, as business volumes have fallen off a cliff to about 20% of the pre-pandemic levels. These automobile transporters, a key pillar of
can do extra trips,” says Nanda. When those with about 800 trucks are reducing capacity by half to survive, what will happen to those with less than 100 trucks? It’s a grim outlook for auto transportation companies, and may even add to supply-side bottlenecks for the industry in the near to medium term. ( Graphics by Abdul Shafiq)
The fate of an entire industry is hanging by a thread. With losses and debt woes mounting, automobile-carrier companies, big and small, are drastically scaling down operations. Many are even selling a large part of their fleet, as business volumes have fallen off a cliff to about 20% of the pre-pandemic levels. These automobile transporters, a key pillar of can do extra trips,” says Nanda. When those with about 800 trucks are reducing capacity by half to survive, what will happen to those with less than 100 trucks? It’s a grim outlook for auto transportation companies, and may even add to supply-side bottlenecks for the industry in the near to medium term. ( Graphics by Abdul Shafiq)

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