Truck Rentals Remain Strong in FY16
Published On Apr 05, 2016
Truck rentals for the month of March rose by four percent. The hike is thought to be a result of the recent rise in diesel prices, along with renewed cargo activity.
Coinciding with this, the heavy duty truck segment also boomed in this particular month. The segment is thought to have expanded by more than 30 percent on the backdrop of increasing economic activity. The Indian Foundation of Transport Research and Training (IFTRT) evaluated that the current condition in the market would provide increasing usage to existing truck fleets.
IFTRT predicts that the growth in the heavy-duty truck segment would continue for upcoming months. A reliable monsoon would also add to the momentum in the truck market and fuel the truck transport business, according to the body.
The current fiscal year has been fairly optimistic for the market, with an unbroken stint of growth for many consecutive months in both the rental and the sales area.
Somewhere in the middle of the year, there was a brush of slowdown. Average monthly truck rentals declined by about six percent between April and September 2015 in comparison to the previous year's period. This was thought to be a result of falling diesel price in this period. However, the market had rebounded back to its upward trend. February 2016 saw a five percent rise in truck rentals, while March continued the trend with four percent increase. Coupled with the hike in diesel prices, the massive cargo movement in the country and a sustainable supply of goods is said to propel the market forward.