Truck rentals rise for second month in August, driven by festive and post-election demand: report
Sep 05, 2024
New Delhi [India], September 5 : Truck rentals continued their upward trend in August 2024, marking the second consecutive month of growth, as per the latest Shriram Mobility Bulletin.
The festive season's approach, coupled with increased post-election activities, has significantly driven demand across various transportation routes.
Notably, fleet utilization in the India-Bangladesh border region saw a significant improvement, rising to nearly 60 per cent from the previous 40 per cent.
The resumption of trade activities between India and Bangladesh has particularly increased truck rentals in the Kolkata-Guwahati-Kolkata route, registering the highest surge at 3.0 per cent.
The Delhi-Kolkata-Delhi and Delhi-Hyderabad-Delhi routes also witnessed increases of 2.7 per cent and 2.3 per cent, respectively.
Apple harvest and poll-bound activity pushed up freight rates in the Srinagar region. Freight rates rose by nearly 10 per cent in August, in this area.
The Wayanad region experienced a rise in freight rates due to a reduced number of trucks, many of which are engaged in rehabilitation work.
YS Chakravarti, MD and CEO, of Shriram Finance Ltd., speaking about the Bulletin said, "As the festive season approaches, companies across India are intensifying their efforts to boost production and supply, causing an uptick in truck rentals on key routes. The Srinagar area is particularly active due to the apple picking season and pre-election activities, which are driving up freight rates. Additionally, the reopening of trade at the India-Bangladesh border is leading to higher fleet usage in that region. However, the recent floods in Gujarat have led to logistical challenges. As we observe the situation, there is a cautious anticipation to see how quickly Andhra Pradesh and Telangana will recover from the devastating floods."
Motor car sales has witnessed a 6 per cent decline in sales with 280,151 units sold in August 2024 compared to 297,623 units in July 2024. The drop in sales is attributed to excessive rainfall, which affected showroom visits in Gujarat, Andhra Pradesh, and Tripura. In contrast, Goa, Kerala, and Haryana saw growth in vehicle sales.
In the two-wheeler segment, sales contracted by 8 per cent month-on-month in August 2024. However, year-on-year sales rose by 6%, fuelled by anticipation of the upcoming festive season.
The used commercial vehicle (UCV) market showed healthy year-on-year growth across all weight categories. Prices for 31 to 36-ton 4-wheeler UCVs increased by as much as 12 per cent, while the 3.5 to 7.5-ton category saw an 11 per cent price growth.
In August 2024, petrol consumption rose by 2 per cent month-on-month, reflecting an 8 per cent increase compared to the same period last year. However, diesel consumption declined by 10 per cent month-on-month, totalling 6.48MT.
Toll collections saw a slight month-on-month growth, with a 7 per cent year-on-year increase in volume and an 8 per cent rise in value. Electric two- and three-wheelers registered a decline of 26 per cent and 3 per cent YOY respectively. E-way bill generation experienced a month-on-month increase in July 2024.
