Truck fleet demand, utility down: Think tank report
21 Apr 2021
2 Min Read
Editorial Team
As the second wave of Covid-19 makes its way into the country, affecting various industrial sectors severely, truck rentals have now plunged beyond expectation.
According to a report by the transport sector think tank Indian Foundation of Transport Research and Training (IFTRT), fleet utilisation is down to 60%. Given the emerging trend of truck drivers preparing to return to their hometowns or villages to escape the new wave of coronavirus, the situation for trade, commerce and industry are grim, leading to panic in the transport business. Ashok Leyland, Eicher, and M&M are down 2-4%.
The IFTRT report states that the new wave of Covid has led to a decline in the arrival of food and vegetable items at the mandis (Agriculture Produce Market Committees or APMC).
APMCs were set up by the state governments to ensure good price discovery for farmers and to prevent retailers from having an undue bargaining advantage.
The new wave has led to a 10-15% drop in demand from restaurants and hotels. Dispatches from factory gates also dropped lower by a similar 10-15%.
The worst hit was production in Micro Small and Medium Enterprises (MSME), although diesel and tyre prices have remained unchanged from March 2021.
If the situation remains dull, it will affect the payment of EMI on truck purchase loans. Truck rentals might see unions demand yet another moratorium.
Round trip rentals for 18-20 tonne payload trucks:
Delhi-Mumbai-Delhi: down 16%
Delhi鈥揘agpur鈥揇elhi: down 10%
Delhi-Ranchi-Delhi: down 15%
Delhi-Chennai-Delhi: down 13%
Delhi-Kandla-Delhi: down 15%
Also read: Container prices in India and China surge: Container xChange report
As the second wave of Covid-19 makes its way into the country, affecting various industrial sectors severely, truck rentals have now plunged beyond expectation.
According to a report by the transport sector think tank Indian Foundation of Transport Research and Training (IFTRT), fleet utilisation is down to 60%. Given the emerging trend of truck drivers preparing to return to their hometowns or villages to escape the new wave of coronavirus, the situation for trade, commerce and industry are grim, leading to panic in the transport business. Ashok Leyland, Eicher, and M&M are down 2-4%.
The IFTRT report states that the new wave of Covid has led to a decline in the arrival of food and vegetable items at the mandis (Agriculture Produce Market Committees or APMC).
APMCs were set up by the state governments to ensure good price discovery for farmers and to prevent retailers from having an undue bargaining advantage.
The new wave has led to a 10-15% drop in demand from restaurants and hotels. Dispatches from factory gates also dropped lower by a similar 10-15%.
The worst hit was production in Micro Small and Medium Enterprises (MSME), although diesel and tyre prices have remained unchanged from March 2021.
If the situation remains dull, it will affect the payment of EMI on truck purchase loans. Truck rentals might see unions demand yet another moratorium.
Round trip rentals for 18-20 tonne payload trucks:
Delhi-Mumbai-Delhi: down 16%
Delhi鈥揘agpur鈥揇elhi: down 10%
Delhi-Ranchi-Delhi: down 15%
Delhi-Chennai-Delhi: down 13%
Delhi-Kandla-Delhi: down 15%
Image Source
Also read: Container prices in India and China surge: Container xChange report
Next Story
Reliance, Diehl Advance Pact for Precision-Guided Munitions
Diehl Defence CEO Helmut Rauch and Reliance Group鈥檚 Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence鈥檚 long-term commitment to the Indian market and its support for the Indian Government鈥檚 Make in India initiative. The partnership鈥檚 current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the 鈥淰ulc..
Next Story
Modis Navnirman to Migrate to Main Board, Merge Subsidiary
Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company鈥檚 growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..
Next Story
Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025
The Bharat InvITs Association鈥檚 industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States鈥� share of global activity below 15 per cent. Meanwhile, in..
