Commercial fleet utilisations at 50% of pre-COVID levels; CV lenders take a hit

Commercial fleet utilisations at 50% of pre-COVID levels; CV lenders take a hit

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The second COVID-19 wave has disrupted the recovery in the commercial vehicle (CV) sector. CNBC-TV18 learnt from industry sources that the commercial fleet utilisations are only at 50 percent of pre-lockdown levels.

Demand for load has seen a sharp fall in categories such as autos and auto ancillaries, construction materials, and even e-commerce since mid-April. However, on the other hand, operating costs for transporters have increased by 8-10 percent.

While the operating costs have risen, freight rates are not rising to offset the increase in operating cost. This is hurting profitability as well as margins of fleet operators.

The CV lenders have also taken a hit on their collection efficiencies. The collection efficiency has dropped to around 50 percent. The lenders have cautioned a rise in NPAs from June if no moratorium or interest waiver given.

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