A Truckload Of Demand: India’s Truck Utilisation Rate At Five Year High Thanks To Industry And Agri Sectors

Truck utilisation rate rose in the month of September and hit a five year high in light of robust demand from both industry and agriculture sector, Business Standard has reported.

“The September quarter has been the best in five years in terms of capacity added in tonnage terms, freight and utilisation rate,” Senior Fellow at the Indian Foundation of Transport Research and Training (IFTRT), a Delhi-based think-tank, SP Singh told Business Standard. Further, he added that consistent manufacturing output has helped. Higher demand for consumer durables is expected to keep the utilisation rate of trucks at the same level for the next few months.

Sales at commercial vehicle manufacturers including Volvo Eicher Commercial Vehicles (VECV), Tata Motors, Mahindra and Mahindra and Ashok Leyland have also increased from 75,835 in September 2017 to 95,122 units this year.

Truck rentals which are an indicator of the economic activity in the country also grew by 5-6 per cent. “The increase in freight is yet to show the impact of fuel price. What we are seeing now is purely being led by supply-demand dynamics”, Director at Caravan Roadways, NL Gupta told Business Standard. Freight rates have been disappointing for some of the transportation firms due to the rapid rise in crude oil prices.