Transporters' body is talking to Renault to do away with quotation route

Logo of Renault (Photo: Reuters)
Renault Nissan India, which has decided to float a request for quotation (RFQ) to select the logistic providers for its passenger cars in the country, has invited protest from the service providers.

The Car Carrier Association (CCA), which represents over 90 per cent of the 15,000 car-carrying trucks and trailers in the country, has raised protest and is talking to the company to do away with the quotation route. The carriers say the industry is seeing the RFQ in India for the first time and it can affect their business.

E-mails sent to Renault and Nissan in India did not elicit response. “The route through quotations would affect us, since the players will try to quote the lowest to get the bid. We are in talks with the company on this,” said Vipul Nanda, president, CCA.

The association has almost 70 of the 100 fleet owners who are involved in car transportation as their members, who own the majority of the trailers. The members will not participate in the RFQ, he says.

The move also comes at a time when the fleet owners are facing challenge from various sides. Nanda says the CCA is also fighting against the increased surprise inspections and higher penalties imposed by many states, after the implementation of the GST. The penalties have gone up dramatically in many states and are around 20 per cent of the overall cost for the fleet owners.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel