Economy

Truck rentals see marginal increase: IFTRT report

Our Bureau New Delhi | Updated on August 02, 2021

Hinting at recovery in the transportation sector, truck rentals across the country registered a four to six per cent increase in July. A report by Indian Foundation of Transport Research and Training said the increase in rentals is on the support of 10 to 15 increase of factory output. It was possible even though the despatches in vegetables in regulated markets dropped by 10 per cent due to the monsoons and floods in various parts of the country.

Senior fellow of IFTRT SP Singh said overall lifting of lockdowns across the country has also lifted the business sentiments and trade and commerce. He said in the report that despite rains, cement transportaion, infrastructure projects and exports have been brisk to support fleet utilisation to over 75 per cent compared to June, 2021.

The truck rental for popular 18-tonne payload multiaxle truck for full round trip for a Delhi-Mumbai-Delhi route saw a five per cent increase of about ₹6,000, when the increase in diesel price was about ₹700. Similarly, Delhi-Nagpur-Delhi route saw an increase of 5.1 per cent, Delhi-Kolkata-Delhi six per cent and Delhi-Chennai-Delhi 4.5 per cent in rentals.

Lag period

Singh said the heavy truck sales, despite a three per cent price hike, have gone up by 25-30 per cent on the low base of July. He said the road transport sector absorbed the vehicle, tyre and diesel price increase. “The transport being a dependent business and fragmented, takes time to recover. So far it is a mixed picture,” he added.

Published on August 02, 2021

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