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Truck fares increase by up to 13% due to festival
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29% increase in two-wheeler sales in October.
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115% YoY growth in electric car sales.
DiwaliIndia's transport sector gained momentum in October on the back of higher freight demand from the earlier festive season and overall growth in vehicle retail sales. This indicates a positive trend in the consumption and freight sectors of the country. India Transport Sector:
Truck rental rates remained strong due to festive demand. Year-on-year increase in truck fares was recorded on all major routes under observation. Delhi-Kolkata-Delhi route saw an increase of 13 percent. Then Bangalore-Mumbai– An increase of 12 percent was recorded on the Bangalore route and 9 percent on the Kolkata-Guwahati-Kolkata route. Fares on other routes increased by 4 to 7 percent. The rental rates remained stable on a month-on-month basis as well. On the Bangalore-Mumbai-Bangalore route, there was an increase of 2 percent, while on the Delhi-Chennai-Delhi route, there was an increase of 1.4 percent.
Truck drivers and transporters face difficulties due to entry ban
However, the ban on entry of BS IV trucks in the National Capital Region (NCR) faced difficulties for truck drivers and transporters. The ban created an atmosphere of confusion at the border. Two-wheeler sales saw a strong growth in October. Motorcycle and scooter sales recorded a month-on-month growth of 29 percent. This was the highest growth across all vehicle categories due to the boost from festive shopping ahead of Diwali.
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Sales of cars and construction equipment also showed positive growth. Motor car sales increased by 17 percent month-on-month. Sales of construction equipment recorded a 25 percent growth, while sales of earthmoving equipment recorded a 7 percent growth. Sales of construction equipment also grew by 21 percent on a year-on-year basis.
Among other vehicle categories, sales of three-wheelers and agricultural trailers increased by 20 percent each month-on-month. This was followed by an increase of 15 percent in sales of commercial tractors and 11 percent in sales of cargo vehicles. However, maxi cab sales declined by 11 percent and bus sales by 2 percent.
In the sale of three wheeler cargo vehicles
On a year-on-year basis, the vehicle sales picture remained mixed. Last year, vehicle sales hit a peak during the festive season in October. Hence, this year's sales were compared to a higher base. Three-wheeler cargo vehicles saw the highest growth of 25 percent. This was followed by a 14 percent increase in bus sales and a 7 percent increase in agricultural tractor sales.
On the other hand, sales of motorcycles and scooters declined by 28 percent, commercial tractors by 24 percent, motor cars by 15 percent, earthmoving equipment by 12 percent and agricultural trailers by 11 percent. Sales of cargo vehicles also recorded a slight decline.
Sales of electric vehicles continued to grow strongly on a year-on-year basis. Sales of electric cars more than doubled, increasing by 115 percent. At the same time, the sales of electric three-wheelers increased by 93 percent and the sales of electric two-wheelers by 62 percent. This shows that the electric mobility sector is continuously expanding. Compared to the month, electric two-wheeler sales increased by 8 percent, while electric three-wheeler sales increased by 5 percent.
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Freight during the festive season
Commenting on these developments, Sriram Finance's Joint Managing Director and Chief Operating Officer (Commercial Vehicles) Shri. Sudarshan Holla said, “Truck fares remained very strong in the month of October due to the festive season cargo. The momentum is expected to continue till the first fortnight of November. The entry ban of BS IV trucks in the NCR region is facing problems for truck drivers and transporters. Two-wheelers, passenger cars and construction equipment have seen strong month-on-month growth. This momentum is likely to continue with Diwali this month.”
Freight is the main reason behind this
Fuel consumption also increased in the month of October. Petrol consumption increased by 4 per cent month-on-month, while diesel consumption registered a significant increase of 20 per cent. The major reason behind this was the increased freight traffic during the festive period. Petrol and diesel consumption increased by 3.1 percent and 11.7 percent respectively on annual basis.
FASTag collection also improved in the month of October. Month-on-month, the number of FASTag transactions increased by 1 percent, while the value of funds collected increased by 2.3 percent. However, the number of transactions declined by 6 percent on a year-on-year basis, while the value of funds collected registered a growth of 9 percent.