Truck rentals remained stable in September, supported by increased fleet utilization and higher demand for commercial vehicles ahead of the festive season. EV sales declined, while used commercial vehicle prices saw significant year-on-year growth.
07 Oct 2024 | 287 Views | By Autocar Pro News Desk
Truck rentals remained steady in September amid ongoing pre-festive stocking across India. Fleet utilisation levels rose to 90%, the highest seen recently, up from 70%. Freight rates held firm without significant changes, although there were minor increases on certain routes.
The Bengaluru-Mumbai-Bengaluru route experienced the highest increase at 1.6%, ...
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Truck rentals remained steady in September amid ongoing pre-festive stocking across India. Fleet utilisation levels rose to 90%, the highest seen recently, up from 70%. Freight rates held firm without significant changes, although there were minor increases on certain routes.
The Bengaluru-Mumbai-Bengaluru route experienced the highest increase at 1.6%, while the Kolkata-Guwahati-Kolkata route saw no change. The Delhi-Bengaluru-Delhi and Delhi-Mumbai-Delhi routes recorded moderate growth of 1% and 0.7%, respectively.
Sales of commercial vehicles, including construction and earth-moving equipment and goods carriers, saw growth as demand for vehicles rose ahead of the festive season. Sales of e-rickshaws with carts and three-wheeler goods carriers also increased. However, electric vehicle (EV) sales fell in September, as the Electric Mobility Promotion Scheme 2024 has yet to meet expectations. Passenger vehicle sales, including cars and two-wheelers, declined during the same period.
Despite rising tyre prices and toll charges, freight rates remained steady, although truck operators signaled that a tariff hike may soon be necessary. The trucking industry also pointed to higher operational costs, with fleet operators calling for a reduction in fuel prices to mitigate the impact of any potential freight rate increase.
In the used commercial vehicle market, prices in the 1.5 to 2-tonne category increased by 21% year-on-year, while the 7.5 to 16-tonne category saw a 12% rise. However, prices in the 16 to 19-tonne category declined by 16%. Meanwhile, in the used passenger vehicle market, Maruti Baleno and Maruti Dzire showed positive sales growth of 8% and 7%, respectively, year-on-year, while other segments continued to face downward pressure. Used two-wheeler sales also saw a decline across most brands.
New passenger vehicle sales were down, with motor car sales dropping by 14% on a month-on-month basis and by 20% year-on-year in September 2024. Two-wheeler sales fell by 10% month-on-month and 8% year-on-year. This decline may be attributed to a cautious approach by buyers, who may be waiting for the upcoming festive season to make purchases.
In the EV segment, sales continued to face challenges despite government efforts to boost the market. Two-wheeler EV sales fell by 23% month-on-month and 44% year-on-year, while four-wheeler EV sales dropped by 31% month-on-month and 43% year-on-year.
Petrol consumption in September 2024 declined by 6% month-on-month, while diesel consumption decreased by 2%. Fast-tag volumes also dropped by 3.2%, although overall toll revenues increased due to higher toll charges. E-way bill generation remained flat month-on-month in August 2024 but showed a 13% increase year-on-year.
As the Indian economy prepares for the festive season, the trucking industry is expected to continue growing, supported by increased demand and improving market conditions.