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By PTI
NEW DELHI: The shares of commercial vehicle manufacturers, led by Ashok Leyland, have fallen today to 14 percent after the government brought in new standards of capacity to loading that could harm the demand
The shares of Escorts fell 3.50 percent to close at Rs 861.75, Tata Motors fell 2.19 percent to Rs 251.95 and Mahindra & Mahindra lost 2.05% to Rs 902.25.
Load capacities of heavy vehicles, including trucks, have been increased by 20-25% to the same level as global standards, said yesterday Minister of Road Transport, Nitin Gadkari. We believe that the street is too concerned about the new axle load standards
The short-term demand is therefore likely to be moderate because of the confusion surrounding the applicability and implementation of the standards, "says Edelweiss Research in a report.
ICRA's rating agency Vic Shamsher Dewan said that the decision to increase the axle load by 20-25 percent would be marginally negative for volume CV demand because overload is a a common phenomenon in India. "
] The government made changes to the regulations governing" axle loads. "Previously, the changes were last notified in 1983. After 35 years, the government decided to increase axle loads after taking into account qualitative and quantitative changes in national highways and heavy goods vehicle
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