Truck sales rise 52% in July with strong economic growth

Our Bureau

New Delhi, Aug. 3
Truck sales in July have risen 52.30 per cent to 24,469 units, due to high demand for cargo transportation from a buoyant economy. The higher sales have also been aided by truckers buying more Euro II trucks, which will go out of production from September 30 and be replaced by the more expensive Euro III and IV trucks.

Sales of the 5-49-tonne category in July 2009 stood at 23,756 units.

According to an Indian Foundation of Transport Research and Training (IFTRT) report, despite lower discounts by manufacturers, sales have risen on the back of “consequent sustained cargo offering from manufacturing, import-export and agricultural sectors”.

“Truckers fear substantial increase in price of Euro III and IV trucks and the likely lack of after-sales support for these high-tech vehicles … truckers are advancing the purchases to avoid the last minute rush in September,” said the report.

The highest increase of 85 per cent was seen in the 30-49-tonne multi-axle trailer category at 2,454 units, followed by a 61 per cent rise in the 25.2-31-tonne capacity multi-axle truck category at 9,824 units. The lightest, 5-7.5-tonne category, saw the smallest sales increase of 30 per cent to 3,459 units.

“Introduction of a single composite fee of Rs 15,000 for the National Permit has generated an impetus in the trucking industry to acquire new trucks and this fleet replacement and expansion is on the brisk path. Corporates with long-term contracts with logistics firms are also seeking a younger age fleet.

Truck Rentals

Truck sales in the next two months are expected to be higher month-on-month,” the report said.

Despite a traditionally weak transportation phase during the monsoon season, truck rentals have remained firm with a 2-3 per cent increase on trunk routes in July this year, said the IFTRT.

Previously in June, truck rentals had touched a three-year high with a 6-7 per cent rise. From November, 2009 till May 2010, rentals had already gone up 23-25 per cent on the back of the high growth posted by the manufacturing sector and import-export trade.

“Truck rental in the earlier part of July 2010 shot up 10-12 per cent as an after effect of diesel and tyre price hike, but moderated immediately in the coming days,” it said.

It added that the moderation in rentals on the trunk routes can also be attributed to nationwide deliveries of a record apple fruit crop in Northern India and a strong citrus crop harvest in Southern India.

Individually, the highest increase of 3.52 per cent in rentals was seen in the Delhi-Raipur-Delhi route, followed by a 3.42 per cent increase in the Delhi-Kandla-Delhi route.

The lowest increase of 1.96 per cent happened in the Delhi-Mumbai-Delhi route.