Truck rentals up 4%, may maintain trend till September

By: | Updated: April 5, 2016 7:18 PM

Truck rentals on trunk routes during March went up by 4% on the back of R3.37 a litre hike in diesel price supported by quantum jump in cargo availability from factories in the last month of fiscal 2015-16 and continued sustained supply of fruits and vegetables with improvement in export cargo.

india truck banThere was a fall in average monthly truck rentals of 5.3%-6.9% on trunk routes during April-September 2015 in comparison to same period previous year mainly due to decline in diesel price during this period. (Source: IE)

Truck rentals on trunk routes during March went up by 4% on the back of R3.37 a litre hike in diesel price supported by quantum jump in cargo availability from factories in the last month of fiscal 2015-16 and continued sustained supply of fruits and vegetables with improvement in export cargo.

Consequently, the heavy truck sales during March 2016 witnessed robust increase of over 30% due to demand on account of replacement, regulatory factors and also fleet expansion and infrastructure sector expected to provide better employment to existing and new truck fleet, said Indian Foundation of Transport Research and Training (IFTRT), the apex body tracking truck industry for two decades, said.

Thus, next two quarters i.e. April to September 2016 will give clear sustainable signal for upswing in heavy truck sales to be followed by LCV and ICV sales (5 tonne – 40 tonne range). The expectation of good monsoon and its fairly even distribution will also add to the positive sentiments in the truck transport business in next fiscal i.e. 2017-18, IFTRT pointed out.

As last quarter of the current fiscal 2015-16 ended March 2016 has been fairly buoyant for truck transport business as truck rentals for the second consequent month witnessed increase in truck rentals both on account of increase in diesel price as well as improvement in cargo availability and better fleet utilisation across the spectrum like agri products, manufacturing, infrastructure and exports.

While, February 2016 saw increase in truck rentals by 5%, the March 2016 continued the upswing with 4% increase due to Rs 3.37 a litre hike in diesel prices, supported by quantum jump in cargo availability from factories on the last month of fiscal 2015-16 and continued sustained supply of fruits and vegetables with improvement in export cargo.

There was a fall in average monthly truck rentals of 5.3%-6.9% on trunk routes during April-September 2015 in comparison to same period previous year mainly due to decline in diesel price during this period.

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