Right on the heels of 6-8% increase in truck rentals in January 2014, the month of February (Feb 2 - Mar.1, 2014) witnessed a further increase in truck rentals to the tune of 3-4% on trunk routes due to increased despatches from fruits, vegetables and food items in the APMCs across the country and stable demand from the manufacturing sector, according to Prabhudas Lilladher (PL).
''Despite record discounts on sales and subvention to auto financers, M&HCV goods segment declined by 22.1% YoY in February 2014, with a YTD de-growth at 27.9% YoY, mainly on account of low cargo offerings across segments and negative sentiments on the ground level. LCV goods segment de-grew at 33.4% in February 2014, with de-growth in YTD FY14 at 17.1% YoY,'' it said.
''We maintain our negative view on the Trucking industry (M&HCV segment) for the next six months. However, we believe, volumes have bottomed out. We expect M&HCV goods segment to de-grow by 20-22% in FY14E. In our view, LCV goods segment is also likely to decline by 15-16%,'' it added.
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