COVID lockdowns hit truck rentals as factory output slips

The slump in factory output following the lockdowns in nearly all the states and Union Territories across India has resulted in decline of 5-7 percent in truck rentals on key trunk routes in the past 15 days alone, news agency PTI reported quoting the data released by Indian Foundation of Transport Research and Training (IFTRT), a Delhi-based think tank.

The truck rentals were expected to be down more had the arrival of summer fruits, vegetables, wheat and other crops in APMC mandis not gone up by 10-15 per cent, IFTRT said.

The think tank further reported that with the lockdown seeing a steep drop in cargo offerings as businesses and factories of MSMEs in most states are under lockdown, demand for new vehicles to replace old fleet by owners has come to a standstill. This has resulted in a temporary pause in production of commercial vehicles, creating a cascading effect on the Indian economy as a whole.