Truck Rentals Remain Firm Amid Rising Costs in March
WAREHOUSING & LOGISTICS

Truck Rentals Remain Firm Amid Rising Costs in March

Mobility and logistics activity in India remained stable in March as truck rentals on major trunk routes held firm, aided by year end dispatches and steady fleet availability. On a year on year basis the Delhi–Kolkata–Delhi corridor recorded 10 per cent growth, Bengaluru–Mumbai–Bengaluru rose nine per cent and several other corridors expanded eight per cent; month on month increases were modest, with rentals up one point eight per cent on the Delhi–Kolkata–Delhi route and one point five per cent on Bengaluru–Mumbai–Bengaluru. LPG tanker movement was significantly impacted by curtailed supplies.

The report said rising operating costs underpinned the firmness and warned that the ongoing conflict in the Middle East could add further pressure on logistics operations. Tyre manufacturers announced a ten per cent price hike effective from April one and seasonal toll increases from the same date are likely to push rentals higher.

Vehicle sales were mixed in March, with motor car sales rising 11 per cent and two wheeler sales increasing 14 per cent on a month on month basis, supported by year end discounts. Agriculture linked segments moderated as commercial tractor sales fell three per cent and agricultural tractor and agricultural trailer sales declined nine per cent and 14 per cent respectively, while construction equipment vehicles and maxi cabs recorded gains of 13 per cent and 11 per cent.

Electric vehicle adoption accelerated, with electric two wheeler sales up 72 per cent month on month, electric passenger vehicles rising 57 per cent and electric three wheelers increasing eight per cent. Macro indicators showed FASTag collections rising by three point eight per cent in volume and three point nine per cent in value month on month, while petrol consumption increased 13 per cent to three point seven eight mn t and diesel rose 14 per cent to eight point seven three mn t, each registering around an eight per cent improvement year on year. Company executives indicated that cost pass through by tyre makers and toll hikes would be central to further rental inflation if geopolitical tensions persist.

Mobility and logistics activity in India remained stable in March as truck rentals on major trunk routes held firm, aided by year end dispatches and steady fleet availability. On a year on year basis the Delhi–Kolkata–Delhi corridor recorded 10 per cent growth, Bengaluru–Mumbai–Bengaluru rose nine per cent and several other corridors expanded eight per cent; month on month increases were modest, with rentals up one point eight per cent on the Delhi–Kolkata–Delhi route and one point five per cent on Bengaluru–Mumbai–Bengaluru. LPG tanker movement was significantly impacted by curtailed supplies. The report said rising operating costs underpinned the firmness and warned that the ongoing conflict in the Middle East could add further pressure on logistics operations. Tyre manufacturers announced a ten per cent price hike effective from April one and seasonal toll increases from the same date are likely to push rentals higher. Vehicle sales were mixed in March, with motor car sales rising 11 per cent and two wheeler sales increasing 14 per cent on a month on month basis, supported by year end discounts. Agriculture linked segments moderated as commercial tractor sales fell three per cent and agricultural tractor and agricultural trailer sales declined nine per cent and 14 per cent respectively, while construction equipment vehicles and maxi cabs recorded gains of 13 per cent and 11 per cent. Electric vehicle adoption accelerated, with electric two wheeler sales up 72 per cent month on month, electric passenger vehicles rising 57 per cent and electric three wheelers increasing eight per cent. Macro indicators showed FASTag collections rising by three point eight per cent in volume and three point nine per cent in value month on month, while petrol consumption increased 13 per cent to three point seven eight mn t and diesel rose 14 per cent to eight point seven three mn t, each registering around an eight per cent improvement year on year. Company executives indicated that cost pass through by tyre makers and toll hikes would be central to further rental inflation if geopolitical tensions persist.

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