The truck rental on the trunk routes saw an increase of 9% in the two months of January and February 2018 on the back of steep diversion of truck fleet towards infrastructure projects.
By: FE Bureau | New Delhi |
March 7, 2018
The truck rental on the trunk routes saw an increase of 9% in the two months of January and February 2018 on the back of steep diversion of truck fleet towards infrastructure projects, increase in diesel price, uptick in manufacturing activity and stronger movement of various agri products across the country on the back of soft enforcement of GST.
According to Indian Foundation of Transport Research and Training (IFTRT), the apex body which is tracking truck movement in India for decades, the truck rentals have been northward throughout last two months by 9% on trunk routes due to uptick in manufacturing activities, improved cargo offerings by 15%-20% from fisheries, poultry farms and winter vegetables and fruits leading to 15%-20% improvement in fleet utilisation in this period.
IFTRT pointed out that part of the hike in the rentals has been also due to a Rs 2.10 increase in diesel price over the last few weeks on the back of fluctuating brent crude oil price, which was hovering around $65-67/bbl.
In addition to this, the domestic tyre manufacturers jacked up truck tyre prices, capitalising on the increase in import duty (costlier by 5% due to hike in customs duty from 10% to 15%) on import of tyres from China.
According to the foundation, the unprecedented high discounts ranging between 12% and 20% on various truck variants offered by truck dealers, base effect and improved business activities had created demand for high tonnage capacity trucks as truckers have migrated from 25 tonner multi-axle truck to 37 tonner multi-axle rigid body trucks having low per tonne fixed and variable cost and thereby improving the revenue realisation in last few months with January and February 2018 touching the peak by 25%-30% jump in M & HCV sales. (Source: financialexpress.com)