The New Year has begun well not only for passenger cars, but also commercial vehicles. Truck sales (5-49 tonne) have reported a rise of 10 per cent during January this year, while truck rentals grew by 2.5-3 per cent on the back of buoyant cargo demand.

The total truck sales during January this year stood at 31,340 units compared with 28,504 units in January 2011, due to fleet expansion by operators on the back of robust growth in cargo offerings from agro-commodities and manufacturing sector. January sales growth was mainly driven by the multi-axle vehicle (25.2-31.2 tonne) segment, which saw a rise of 16.4 per cent in volumes at 13,236 units, according to a statement by IFTRT (Indian Foundation of Transport Research and Training).

During the past four months (Oct 2011- Jan 2012), the cargo demand from fresh fruit and vegetables was up 25-30 per cent, while the demand from food grains and cereals was up 10-15 per cent. Manufacturing sector recovered significantly by offering 8-10 per cent more cargo during January this year and this has kept the truck rentals healthy.

Truck rentals between December 4, 2011 and January 3, 2012 were in a correction mode and remained range bound by plus or minus 1 per cent on truck routes. But rentals saw an increase of 2.5-3 per cent during January 2012 due to healthy cargo demand from across segments.

As per IFTRT data, rentals on Delhi-Mumbai-Delhi trip on a 9-tonne payload truck were about Rs 58,000 on February 2 when compared with rates of Rs 56,600 January 2. Similarly Delhi-Chennai-Delhi round -trip was up 3 per cent at Rs 93,200 and Delhi-Bangalore-Delhi increased by 3 per cent at Rs 91,200.

The overall cargo offerings are also likely to be buoyant in next two months of the current financial year leading to additional demand for fleet replacement and expansion. The last quarter of the current financial year has started with double-digit growth in January. Leading commercial vehicle firms Tata Motors, Ashok Leyland and Eicher have reported 14 per cent, 34 per cent and 6 per cent growth respectively in CV sales in the domestic market.

Historically, sales in February and March will be higher than January volumes as fleet owners make extra purchases due to depreciation benefits and discounts offering during this period.

balachandarg

@mydigitalfc.com