MUMBAI, Feb 5: Truck rentals across key trunk routes in the country staged a smart recovery in January 2025 due to the arrival of winter fruits and vegetables with some of these routes seeing an up to 4 per cent surge in rentals, according to an industry report.
The January-March quarter is typically a very busy period, with agricultural activity picking up after the rabi harvest, as well as an increase in manufacturing activities across multiple sectors, according to Shriram Finance monthly bulletin.
This uptick in activity, it said, has resulted in a surge in the sales of commercial vehicles like goods carriers, cargo three-wheelers as well as passenger Buses, Maxi cabs and agricultural trailers in the previous month.
When it comes to truck rentals, Delhi-Mumbai-Delhi route witnessed a 4 per cent increase, the Mumbai-Kolkata-Mumbai route 3.7 per cent, and the Delhi-Hyderabad-Delhi and Kolkata-Guwahati-Kolkata routes saw a 3.3 per cent increase each in rentals on a month-on-month basis, it stated.
On a month-on-month basis, goods carriers’ sales saw a significant 41 per cent growth in January. Three-wheelers (goods) and passenger buses sales each saw a 32 per cent increase, while Maxi cabs registered a massive 59 per cent growth in sales, it said.
Additionally, the rabi harvest season contributed to a 15 per cent increase in agricultural trailer sales while motor car sales witnessed a 54 per cent growth, and Two-wheeler sales grew by 27 per cent on a month-on-month basis, according to Shriram Finance.
It also said that in the electric vehicle (EV) sector, the previous month saw a 21 per cent sequentially increase in EV two-wheeler sales and a 16 per cent increase in EV car sales.
Besides, e-way bill generation in December 2024, both intra-state and inter-state, showed consistent growth, with intra-state bill generation rising by 8.7 per cent and inter-state by 12 per cent on a m-o-m basis.
“The rise in rental rates is a positive sign for the logistics sector. This increase can be attributed to the arrival of winter fruits and vegetables, which has boosted the need for transportation and storage services,” said Y S Chakravarti, Managing Director and CEO at Shriram Finance Ltd.
However, the cold wave conditions prevailing in most parts of the country have adversely affected vehicle movement, causing some disruptions in the supply chain, he said.
“As we move into a busy quarter, the logistics sector is expected to see heightened activity. The recent union budget has laid out a comprehensive roadmap for the economy, which is likely to further stimulate growth in this sector. Additionally, sales of two-wheelers, passenger cars, and commercial vehicles have shown significant growth, reflecting increased consumer confidence and economic activity,” Chakravarti said.
Overall, despite the challenges posed by the cold wave, the logistics sector is poised for a strong performance in the coming months, driven by seasonal demand and supportive economic policies, he added. (PTI)
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