Truck rentals got increased by twelve percent in the month of September, 17. In accordance with the Indian Foundation for Transport Research and Training, the 2 digit pitch in one month was the first in 5 years.
Additionally, this change comes along with more revelations like stellar 27% escalation in September month sales for the medium and heavy commercial vehicles in comparison to the past year.
The doubt is that will the momentum of growth in sales & rentals be constant? The analysts give in the statement that the rentals will go reasonable in the upcoming time, particularly as numerous issues took place together last month for escalating the rentals to a higher percentage.
- The six percent increase in cost of diesel since April was sharp enough. However, the drooping economic action had turned it really difficult to impart the prices.
- Increased demand for supplies and consequently the requirement for vehicles with the arrival of the festivities in the country came up with an opportunity for service providers [transporters] to pass on charges to the receivers [consumers].
- A regular movement to higher load trucks, for which the rentals could escalate.
Whereas all the above aspects ultimately escalated the rentals in a forceful manner, the other side of this issue is that the rates might recede as the demand for goods in festive season wears off in the duration of two months.
On the other hand, there is a hope that various analysts as well as the business leaders who consider that the wheel of financial action is gradually but definitely active. The actions in mining, construction, and infrastructure, which will increase the requirement for transport services, will also be in support of rentals, particularly for the huge sized trucks.
In accordance with the Edelweiss Research, the stern enforcement of truck overloading, as well as the prohibition of polluting vehicles on the roads, will see alternative demand increase traction. Moreover, the focus could move from the higher sales volume to the higher tonnage.