Truck rentals tepid, commercial vehicle sales skid in April, says report

Rentals on key truck routes decreased or stagnated in April over March 2024, according to the Shriram Mobility Bulletin, a monthly logistics research report by Shriram Finance.

During the month, the Delhi-Kolkata and Bengaluru-Kolkata routes saw significant declines of 2.3 per cent and 2 per cent, respectively. On the other hand, the Bengaluru-Mumbai rental increased by 3.3 per cent on a monthly basis. Other routes that saw declines in rentals during the month include Delhi-Mumbai (1.3 per cent), Delhi-Chennai (0.5 per cent), Delhi-Bengaluru (1.4 per cent), Mumbai-Kolkata (1.6 per cent), Guwahati-Mumbai (1.1 per cent), and Kolkata-Guwahati (0.8 per cent). Rentals on the Delhi-Hyderabad and Mumbai-Chennai routes remained at the March level. "Seasonal fruits, including mangoes, kept some hubs busy. While there was a decline in truck rental, the fleet occupancy remained around 70 per cent," the report said.

In April 2024, goods carrier sales were down 7 per cent to 64,732 units, compared to 69,364 units during the same month last year. On a monthly basis, sales were down by 6 per cent. Despite a month-on-month decline in e-Rickshaw with cart sales, there was a substantial year-on-year increase, suggesting growing adoption and support for electric mobility. e-Rickshaw sales were up by 48 per cent on an annual basis.

Sales in the three-wheeler (goods) category were up by 3 per cent in April 2024 to 8,198 units, compared to 7,980 units in April 2023. "The 31 per cent year-on-year increase in bus sales indicates a potential expansion in public transportation services. The sales of goods carriers, commercial tractors, and agricultural trailers dropped due to seasonal variations and rising interest rates. Growth in sales of motorcycles/scooters remained steady, while that of motor cars dropped," the report added. Compared to the same time last year, motorcycle sales were up by 27 per cent, motor cars by 7 per cent, and construction equipment vehicles by 43 per cent.