Hyderabad, July 06: Higher pump prices for automotive fuels, kept truck rentals elevated in June, even as underlying freight demand remained subdued. Truck rentals across key trunk routes recorded moderate month-on-month increases.
On a month-on-month basis, trends remained mixed. Rentals increased on key routes such as Delhi–Kolkata–Delhi by around 1.7%, Mumbai–Kolkata–Mumbai by about 2%, and Delhi–Bengaluru–Delhi by roughly 1.8%, along with Delhi–Mumbai–Delhi, Delhi–Hyderabad–Delhi, Delhi–Chennai–Delhi, Mumbai–Chennai–Mumbai and Guwahati–Mumbai–Guwahati that recorded modest increases. However, the Bengaluru–Kolkata–Bengaluru and Bengaluru–Mumbai–Bengaluru routes remained flat month-on-month, reflecting softer demand in certain southern corridors. On a year-on-year basis, trucking activity remained resilient across major routes, led by Delhi–Kolkata–Delhi at around 15%, followed by Bengaluru–Mumbai–Bengaluru at approximately 11%, while Mumbai–Chennai–Mumbai and Delhi–Mumbai–Delhi each grew by about 7-8%, indicating sustained long-haul demand despite subdued freight volumes.
Vehicle sales trends remained mixed in June, with strength in select commercial and agricultural segments and sequential moderation in others. Bus sales rose by around 24% month-on-month, while agricultural tractor sales increased by approximately 18%, reflecting seasonal demand ahead of the Kharif sowing period. Commercial tractor sales and earth moving equipment also posted gains of around 10% and 12% respectively. However, motor car sales contracted by about 2% and e-rickshaw sales dipped by 3% on a month-on-month basis. On a year-on-year basis, multiple segments continued to record robust growth, with goods carrier sales increasing by around 21%, motor car sales by approximately 28%, and three-wheeler goods vehicles by about 42%, highlighting sustained demand across logistics and personal mobility segments.
Electric vehicle trends remained structurally strong in June. E-two-wheeler sales grew by around 13% month-on-month, while e-three-wheeler sales rose by approximately 10%, driven by continued adoption in commercial and last-mile delivery segments. On a year-on-year basis, growth remained robust across categories, with e-two-wheelers and e-three-wheelers rising by around 91% and 103% respectively, underscoring sustained expansion of the electric mobility ecosystem.
Commenting on the trends, Sudarshan Holla, Joint Managing Director & Chief Operating Officer, Commercial Vehicles, Shriram Finance, said, “Truck rentals remained elevated driven by higher fuel prices. However, freight demand continues to be subdued, resulting in lower fleet utilisation levels across the industry. With monsoon activity gathering pace; later than expected, trucking activity is likely to remain range-bound through July. The logistics sector is also awaiting clarity from the government on the operation of pre-BS VI trucks in the NCR region during the November–March period, a decision that could have significant implications for fleet deployment and freight movement in a large logistics market.”
Fuel consumption and FASTag data reflected the subdued freight movement. Petrol consumption declined by around 3% month-on-month, while FASTag collections dropped by approximately 3.6% in volume and 1.3% in value, suggesting lower highway traffic and freight flows compared to May. The industry expects pump prices to ease in the coming weeks as international crude price cool, which could provide some relief to fleet operators even as monsoon activity gathers pace.
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