Rising Costs Keep Truck Rentals Firm In March
ECONOMY & POLICY

Rising Costs Keep Truck Rentals Firm In March

India's mobility and logistics activity remained stable in March as truck rentals across key trunk routes held firm, supported by year-end dispatches and rising operating costs. Industrial and consumption-led movement at the close of the financial year underpinned freight flows while fleet availability stayed stable. Movement of LPG tankers was severely impacted during the month due to curtailed supplies.

Year-on-year, the Delhi–Kolkata–Delhi corridor recorded a 10 per cent increase, Bengaluru–Mumbai–Bengaluru rose nine per cent, and the Delhi–Mumbai–Delhi, Mumbai–Chennai–Mumbai and Delhi–Chennai–Delhi routes advanced eight per cent. Month-on-month, limited increases pointed to stable demand, with rentals on the Delhi–Kolkata–Delhi route up one point eight per cent, Bengaluru–Mumbai–Bengaluru up one point five per cent and the Delhi–Mumbai–Delhi and Mumbai–Chennai–Mumbai routes higher by one point two per cent.

Cost pressures are likely to intensify as tyre manufacturers implemented ten per cent price rise from April one and toll charges increased from the same date, factors expected to push truck rentals higher in coming months. The ongoing conflict in the Middle East was said by company executives to be beginning to disrupt logistics activity and to add further upward pressure on operating costs, with the prospect of rising fuel prices compounding the effect. An early onset of summer could temper activity slightly, introducing seasonal moderation.

Vehicle sales were mixed, with motor car sales up 11 per cent and two-wheeler sales higher by 14 per cent month-on-month, while commercial tractor sales fell three per cent and agricultural tractor and trailer sales declined nine per cent and 14 per cent respectively. Construction equipment and maxi cab sales rose 13 per cent and 11 per cent, and electric vehicle adoption remained robust with electric two-wheelers up 72 per cent, electric passenger vehicles up 57 per cent and electric three-wheelers up eight per cent. FASTag collections rose three point eight per cent in volume and three point nine per cent in value month-on-month, while petrol and diesel consumption increased, with petrol at three point seven eight million tonnes (mn t) and diesel at eight point seven three mn t.

India's mobility and logistics activity remained stable in March as truck rentals across key trunk routes held firm, supported by year-end dispatches and rising operating costs. Industrial and consumption-led movement at the close of the financial year underpinned freight flows while fleet availability stayed stable. Movement of LPG tankers was severely impacted during the month due to curtailed supplies. Year-on-year, the Delhi–Kolkata–Delhi corridor recorded a 10 per cent increase, Bengaluru–Mumbai–Bengaluru rose nine per cent, and the Delhi–Mumbai–Delhi, Mumbai–Chennai–Mumbai and Delhi–Chennai–Delhi routes advanced eight per cent. Month-on-month, limited increases pointed to stable demand, with rentals on the Delhi–Kolkata–Delhi route up one point eight per cent, Bengaluru–Mumbai–Bengaluru up one point five per cent and the Delhi–Mumbai–Delhi and Mumbai–Chennai–Mumbai routes higher by one point two per cent. Cost pressures are likely to intensify as tyre manufacturers implemented ten per cent price rise from April one and toll charges increased from the same date, factors expected to push truck rentals higher in coming months. The ongoing conflict in the Middle East was said by company executives to be beginning to disrupt logistics activity and to add further upward pressure on operating costs, with the prospect of rising fuel prices compounding the effect. An early onset of summer could temper activity slightly, introducing seasonal moderation. Vehicle sales were mixed, with motor car sales up 11 per cent and two-wheeler sales higher by 14 per cent month-on-month, while commercial tractor sales fell three per cent and agricultural tractor and trailer sales declined nine per cent and 14 per cent respectively. Construction equipment and maxi cab sales rose 13 per cent and 11 per cent, and electric vehicle adoption remained robust with electric two-wheelers up 72 per cent, electric passenger vehicles up 57 per cent and electric three-wheelers up eight per cent. FASTag collections rose three point eight per cent in volume and three point nine per cent in value month-on-month, while petrol and diesel consumption increased, with petrol at three point seven eight million tonnes (mn t) and diesel at eight point seven three mn t.

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