Mumbai, Aug 8 (PTI) Truck rental charges on major routes stayed largely stable in July, reflecting a balanced demand-supply environment across the country, a report said on Friday.
Freight rates remained
unchanged between June and July for most key routes such as Delhi-Mumbai-Delhi, Delhi-Kolkata-Delhi, and Mumbai-Chennai-Mumbai.
The Bengaluru-Mumbai-Bengaluru corridor recorded a slight uptick of 2.3 per cent month-on-month (MoM), indicating region-specific cargo movement.
However, freight charges on routes like Kolkata-Guwahati-Kolkata saw an increase of 10 per cent, the same went up 8 per cent for Delhi-Hyderabad-Delhi route and 9 per cent for Mumbai-Chennai-Mumbai, continuing to exhibit robust long-haul freight demand, according to a report by Shriram Finance.
The report indicated a steady momentum in the country’s mobility sector in the previous month, with stability and selective upticks across key transport segments driven by preparations for the upcoming festive season. This movement, as per the report, signals gradual improvement in activity. Also, the monsoon nearing its final phase sets the stage for a likely rise in freight rates in the coming months as product demand peaks.
Vehicle retail sales in July reflected both resilience and seasonality, Shriram Finance said in its report.
“As India gets ready for its festivals, a sense of optimism is setting in. With lower interest rates, copious monsoon rains, the rural markets are turning upbeat. Vehicle sales, more specifically two-wheeler sales, could witness a strong rebound. Trucking activity over the next couple of months is expected to be strong with goods movement ahead of festivals and the corporate sector cranking up,” it said.
The report also said that passenger vehicle sales rebounded 7 per cent M-o-M after three consecutive months of decline, signaling early festive readiness while Maxi Cab sales surged 40 per cent on a sequential basis, likely on account of increased fleet deployment for seasonal intercity movement.
Tractor sales rose 15 per cent in July over June, supported by healthy rainfall and active Kharif sowing activity, while sales of commercial tractors climbed 14 per cent, indicating robust rural and agri-supply chain demand, it said.
Meanwhile, two-wheeler sales declined 7 per cent in the previous month over June, and construction-linked categories such as earth-moving equipment (-38 per cent) and commercial construction vehicles (-55 per cent) were impacted by ongoing rains, Shriram Finance said.
Electric vehicle sales continued to show upward momentum with electric three-wheeler sales spiking 19 per cent in the previous month over June, driven by commercial and intra-city transport demand. Electric two-wheelers saw a 4 per cent M-o-M decline, likely due to global supply-side constraints involving rare earth magnets, though YoY performance remained strong, it stated.
Fuel consumption dipped in July due to monsoon-led mobility constraints. Petrol usage fell slightly by 1 per cent MoM to 3.48 million tonnes, while diesel declined 9 per cent to 7.35 million tonnes.
Still, both fuels posted positive YoY growth — 6.1 per cent for petrol and 2.2 per cent for diesel — signalling continued recovery from last year’s base and improved on-road activity overall, it said. PTI IAS HVA
