Recovery of economic activity boosts fares, August CV sales

Overall major highways rose an average of 4.5-5% in August. The Indian Transport Research and Training Foundation (IFTRT) said Thursday that the increase (third consecutive month since the blockade was lifted) was driven by increased exports from all sectors and increased freight provision. rice field.

“Looking at the absolute fares for each route, this is the highest price in August since 2019,” said SP Singh, senior fellow at IFTRT.

As a result, the trucking business can get a fair amount of money, and fleet owners can pass on all operating costs, yet the open market transportation business can collect rewarded truck rental / retail freight. It’s done.

For the first time since the outbreak of the pandemic, operator revenues have surpassed revenues, encouraging them to not only replace old trucks, but also expand their fleet.

Stable diesel prices and low interest rate finance contribute to the operating costs of carriers, Shin said.

India’s industrial production increased 13.6 percent year-on-year due to its low base effect. “The sharp decline in the number of Covid cases seen daily and the increase in economic activity led to a gradual improvement in industrial activity in June. This improvement continued until July, with the manufacturing PMI contracting in June. “.

In August, commercial vehicle manufacturers surged in shipments, triggered by macro improvements, and achieved rapid year-on-year (YoY) growth.

Indian car companies count shipments as sales.

Low bass, but Tata Motors, Ashok Leyland, (M & M) and Eicher Motors increased 23% from 41,202 units in the year-ago quarter to 50,886 units.

With the exception of M & M, most companies also showed improvements in shipping from July. However, M & M gradually decreased by 50% and 42% year-on-year, respectively.

According to Shin, fleet owners are returning to fleet replacement and expanding the intermediate light. Since diesel prices have skyrocketed since January, we are operating on compressed natural gas.

However, not everyone agrees with IFTRT’s view.

Bal Malkit Singh from Bal Roadways Is encouraging, but it is not yet proportional to the increase in overall operating costs, so there is room for further correction.

“Diesel and tire prices have skyrocketed. Tolls have also risen. My trucks are still idling for a long time. So what has changed?” Shin asks.

Analysts at the research firm also agree. “The fare has gone up, The sector isn’t out of the forest yet, “adds the analyst.

Dear reader,

Business Standards has always worked hard to provide you with up-to-date information and commentary on developments that interest you and have a wide range of political and economic impacts on your country and the world. Your encouragement and constant feedback on how to improve our offerings only strengthened our determination and commitment to these ideals. Even during these difficult times resulting from Covid-19, we keep you up to date with credible news, authoritative views, and sharp commentary on issues of relevant topics. I will continue to promise to keep it.
However, there is a request.

As we fight the economic impact of the pandemic, we need more support to continue to provide higher quality content. Our subscription model has seen encouraging reactions from many who subscribe to our online content. More subscriptions to our online content can only help us reach our goal of providing you with better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions will help us practice the journalism we are committed to.

Supporting high quality journalism, Subscribe to business standards..

Digital editor Recovery of economic activity boosts fares, August CV sales

Back to top button