Truck rentals decline amid overcapacity, drop in factory output

Sales of medium and heavy commercial vehicles (MHCVs) dropped 21% to 31,299 units over the same period a year ago, according to the Society of Indian Automobile Manufacturers

Transporters are bracing for a long winter amid a drop in cargo and weak demand.

Despite recent increases in diesel prices, transporters have not been able to pass on the hike, and truck rentals on key trunk routes are down 1.5-2 per cent owing to drop in cargo from the factory gates and oversupply of trucks.

Cumulatively for November, December and the 15 days of January, rentals are down by 25-30 per cent, according to S P Singh, senior fellow at the Indian Foundation of Transport Research and Training (IFTRT).

“The drop in truck rentals outpaced diesel price cuts during November and December