Truck Rentals Dip as Industrial Demand Weakens in India

Truck rental rates in India declined by 4% to 5% in April, following a sharper 9% to 10% drop in March across key routes, according to the Indian Foundation of Transport Research and Training (IFTRT). The fall is attributed to reduced industrial activity, partly impacted by geopolitical tensions involving Iran and supply disruptions from major manufacturing hubs.

Cargo dispatches from manufacturing centres, especially small and medium enterprises, fell by 15% to 20%, significantly affecting freight movement. These businesses typically account for nearly 70% of cargo traffic across intra- and inter-state routes, amplifying the impact of the slowdown on the transport sector.

However, rising arrivals of agricultural produce such as wheat, pulses, fruits, and vegetables boosted agri-logistics demand by 20% to 25%, helping offset some losses. Meanwhile, fleet operators faced higher costs as truck tyre prices increased by 4% to 5% in recent weeks, despite stable diesel prices.

Pic courtesy: google/ images are subject to copyright