Truck freight rates on trunk routes remained steady in September 2024, buoyed by strong cargo flows attributed to pre-festive stocking. Fleet utilisation rose to 90 per cent, up from 70 per cent, according to Shriram Bulletin.
On the Delhi-Mumbai-Delhi route, truck rentals for an 18-ton payload truck increased slightly by 0.7 per cent, reaching ₹1,53,000 compared to ₹152,000 in August.
Similarly, the Mumbai-Chennai-Mumbai route experienced a 0.7 per cent rise, with rates climbing to ₹151,000. The Delhi-Kolkata-Delhi route maintained its rate at ₹150,000, while the Bengaluru-Mumbai-Bengaluru route saw a 1.6 per cent increase, bringing the rate to ₹127,000.
“Ahead of the festive season, robust cargo demand has driven fleet utilisation to 90 per cent, the highest we’ve seen in quite some time. However, truck owners are cautioning about potential freight rate hikes due to increasing tyre prices and toll charges. Fleet operators are also calling for fuel price reductions, which could help mitigate these increases,” stated YS Chakravarti, MD & CEO of Shriram Finance Ltd.
Amid rising expectations regarding the government’s vehicle scrappage policy, the used commercial vehicle (UCV) market has experienced some price increases. The 1.5- to 2-tonne category recorded a significant 21 per cent year-on-year (YoY) increase, while the 7.5- to 16-tonne category saw a 12 per cent rise. However, the 16- to 19-tonne category faced a 16 percent decline.
In the used passenger vehicle market, models like the Maruti Baleno and Maruti Dzire exhibited positive sales growth of 8 per cent and 7 per cent y-o-y, respectively, while other segments continued to experience downward pressure. A similar trend was observed in the used two-wheeler market, which saw a decline across most brands.
The approaching festive season is driving demand for commercial vehicles, reflected in the increased sales of goods carriers, e-rickshaws with carts, and three-wheelers (goods).
Additionally, rising sales of construction equipment and earth-moving machinery indicate a post-monsoon boost in infrastructure development activities, it added.