October saw a post-festive dip in truck rentals while vehicle sales surged, with passenger vehicles and two-wheelers showing notable growth.
08 Nov 2024 | 3263 Views | By Sarthak Mahajan
Following steady truck rental rates in the pre-festive period, October saw a slight decrease in rentals. Fleet utilisation, often experiencing an increase before major festivals due to heightened goods movement by manufacturers, has now returned to typical levels. Truck rentals saw a 2.1% decline on the Mumbai-Kolkata-Mumbai route, a 1.6% ...
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Following steady truck rental rates in the pre-festive period, October saw a slight decrease in rentals. Fleet utilisation, often experiencing an increase before major festivals due to heightened goods movement by manufacturers, has now returned to typical levels. Truck rentals saw a 2.1% decline on the Mumbai-Kolkata-Mumbai route, a 1.6% decrease on the Bengaluru-Mumbai-Bengaluru route, and a 1.4% decrease on the Delhi-Bengaluru-Delhi route month-over-month. Rentals on other key routes remained relatively stable.
During this period, vehicle sales in October saw significant growth, overcoming high inventory levels from previous months. Passenger vehicle and two-wheeler sales increased by 76% and 72% month-over-month, and by 24% and 37% year-over-year. In the EV sector, two-wheeler and passenger car sales grew by 24% and 28%, respectively, on a month-on-month basis.
Y S Chakravarti, Managing Director and Chief Executive Officer of Shriram Finance, explained, “Several factors, including festive discounts and appealing offers from manufacturers, helped drive vehicle sales in October, particularly for two-wheelers and passenger cars. After the Diwali period, truck rentals and fleet occupancy experienced a slight decrease, a typical trend. Looking ahead, the wedding season across large parts of the country is expected to continue supporting vehicle sales.”
Additionally, with the end of the monsoon, infrastructure projects have gained momentum, with new initiatives being launched. This increase in activity may be a factor in the 75% month-over-month rise in earth-moving equipment sales and the 44% growth in commercial construction equipment vehicle sales.
Positive sentiment in rural areas, bolstered by favorable monsoon conditions and promising crop yields, contributed to growth in commercial tractor sales by 39% month-over-month and agricultural trailer sales by 67% month-over-month. Sales in other vehicle categories, including e-rickshaws with carts, goods carriers, and goods three-wheelers, also showed notable increases.
Truck rental services in India play a vital role in supporting the country's logistics and transportation network. These services offer flexible, short-term solutions for businesses and individuals requiring transportation for goods. Truck rentals cater to various needs, including moving household items, transporting goods over long distances, or handling bulk materials for industries like agriculture, manufacturing, and construction.
A variety of vehicle options are available in truck rental services, ranging from light commercial vehicles (LCVs) to heavy-duty trucks, allowing users to choose the vehicle that best suits their requirements. The services are widely accessible, with companies providing rentals across major cities, regional hubs, and rural areas, ensuring coverage for diverse geographical needs.
In recent years, technological advancements have streamlined truck rental processes. Companies are leveraging digital platforms, allowing customers to book trucks online, track shipments in real-time, and access flexible payment options. Seasonal variations, such as increased demand during festive periods, can influence rental rates, reflecting shifts in fleet utilisation.
Truck rental services contribute significantly to India’s economic activity by offering an efficient solution for transporting goods across the country, helping businesses manage logistics cost-effectively and providing support for last-mile connectivity.