16 Jul 2018

Government notifies maximum safe axle weight for trucks and other CVs

CV makers unclear on the announcement, Government confident it won’t affect demand

The Ministry of Road Transport and Highways notified the maximum safe axle weight for different categories of vehicles. As reported yesterday , the load carrying capacity has been revised upwards for trucks with different axles and tractors. Following is a summary of the notification:

Type of vehicle Maximum safe axle weight (T)
Single axle weight with 4 tyres 11.5
2-axle rigid vehicle, semi and full trailers 21.0
2-axle puller tractor for hydraulic trailer 28.5
3-axle rigid vehicles, semi and full trailers 27.0

Apart from the above, gross vehicle weight for rigid vehicles and trailers shall not exceed 49T and 55T respectively, while modular hydraulic trailers can carry any load subject to regulatory nods.

Prima facie, the announcement is negative for CV makers, since it could negatively impact demand for CVs, given that higher loads would be allowed. However, clarity is yet to emerge on whether the notification applies to new vehicles or new as well as existing vehicles. If the higher loading is allowed for only new vehicles, then it could lead to a short term pick-up in demand for CVs. On the other hand, if the load relaxation is applicable to existing and new vehicles, then it could affect CV demand.

In any case, implementation will be the key. Currently, fleet operators routinely flout overloading norms and overload their trucks to the extent of 15-25%. In such a case, the loading relaxation will have little impact on truck demand, since trucks are already being loaded to that extent. However, stocks of CV makers could remain volatile till there is further clarity on the announcement. Ashok Leyland, Tata Motors, Eicher Motors, Mahindra and Mahindra, VST Tillers Tractors, etc. will remain active.