In September, fleet utilisation in the trucking industry surged to 90%, significantly up from 70%, driven by pre-festive stocking across India. Truck rentals remained stable with minor fluctuations depending on the route. Meanwhile, the used commercial vehicle market witnessed price hikes in select categories, even as new passenger vehicle sales saw a decline. Despite government initiatives, the electric vehicle (EV) segment continued to face challenges. Fuel consumption and Fast-tag volumes also decreased, although overall toll revenues rose due to higher toll charges. Industry leaders remain optimistic about a boost during the festive season.Pre-festive stocking created robust demand, propelling fleet utilisation to 90%, a recent peak. Truck rentals mostly held firm, reflecting stability in goods movement. The Bengaluru-Mumbai-Bengaluru route recorded the highest rental increase at 1.6%. Rental rates on the Kolkata-Guwahati-Kolkata route remained unchanged, while the Delhi-Bengaluru-Delhi and Delhi-Mumbai-Delhi routes experienced modest increases of 1% and 0.7%, respectively.
Commercial vehicle market sees growth, EV sector struggles
Sales of new commercial vehicles, including goods carriers and e-rickshaws, showed an upward trend, underscoring the rising demand ahead of the festive period. Additionally, sales of construction and earth-moving equipment increased, indicating a post-monsoon boost in infrastructure development.
Y. S. Chakravarti, MD & CEO of Shriram Finance Ltd., commented: “The positive outlook ahead of the festive season is driving goods movement, with fleet utilisation levels reaching 90%, the highest we’ve observed in recent times. However, truck owners caution that freight rate increases are imminent due to rising tyre prices and toll charges. Fleet operators are also seeking a reduction in fuel prices, which could temper any potential rise in freight rates. We expect the upcoming festive season to provide a much-needed boost to passenger vehicle sales.”
In the used commercial vehicle (UCV) market, prices in the 1.5 to 2-tonne category rose by 21% year-on-year (YoY), while the 7.5 to 16-tonne category saw a 12% increase. In contrast, the 16 to 19-tonne category experienced a 16% decline.
Used passenger vehicle prices showed mixed results. The Maruti Baleno and Maruti Dzire registered positive sales growth of 8% and 7% YoY, respectively. However, other segments continued to face downward pressure. Similarly, used two-wheeler sales declined across most brands.
New passenger vehicle sales followed a downward trend. Car sales fell by 14% month-on-month (MoM) and by 20% YoY. Two-wheeler sales dropped by 10% MoM and 8% YoY in September 2024. This decline may be attributed to consumers adopting a wait-and-see approach, expecting better deals during the festive season.
Despite government efforts to boost EV sales, the segment continued to struggle. Two-wheeler EV sales declined by 23% MoM and 44% YoY, while four-wheeler EV sales dropped by 31% MoM and 43% YoY.
Fuel consumption and toll revenues show mixed trends
Fuel consumption also decreased in September 2024. Petrol consumption fell by 6% MoM, and diesel consumption dropped by 2%. Despite a 3.2% decline in Fast-tag volumes, higher toll charges led to increased overall toll revenues. E-way bill generation remained flat MoM in August 2024 but posted a 13% increase YoY.
As India gears up for the festive season, the trucking industry is positioned for further growth, driven by heightened demand and improving market sentiment. Industry leaders expect the festive period to boost passenger vehicle sales and provide much-needed momentum in the market.
While the sector navigates pre-festive demand and market fluctuations, stakeholders remain hopeful for continued growth and stability in the coming months.
