‘Truck rentals ease in October post festive season’

Truck rentals, after staying firm during the pre-festive period, have eased off in October, according data released by Shriram Mobility Bulletin.

As per the Bulletin truck rentals on the Mumbai-Kolkata-Mumbai route saw a month-on-month (MoM) dip of 2.1% to ₹1,90,000 for a round trip of 18 tonne pay load, the Bengaluru-Mumbai-Bengaluru route saw dip of 1.6% to ₹1,25,000 for the same pay load and Delhi-Bengaluru-Delhi route dipped by 1.4% to ₹2,07,000.

However, rentals on most other key routes stayed almost unchanged as per the Bulletin. 

The fleet utilisation levels have dropped to 80% due to the post-festival impact and cost pressures remained high for truckers.

During the festive season, demand for goods and transportation services typically increases, leading to a temporary spike in logistics activity.

While the truck rental eased off, the festive period provided a boost to vehicle sales and despite high inventory levels during previous months, October 2024 saw substantial growth in vehicle sales. 

Y S Chakravarti, Managing Director and Chief Executive Officer, Shriram Finance, said, “A combination of factors, including aggressive festive discounts by manufacturers and attractive schemes, ensured that October provided a much-needed boost for vehicle sales, particularly for two-wheelers and passenger cars.” 

“It was also a month where truckers saw a slight cooling in rentals and fleet occupancy, which typically happens after the big Diwali push. The outlook remains positive as large parts of the country enter the wedding season, which is expected to further drive vehicle sales,” he added.