Truck rentals improve across major routes in January: Report

Overall, despite the challenges posed by the cold wave, the logistics sector is poised for strong performance in the coming months, driven by seasonal demand and supportive economic policies, he added.

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 percent 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 the 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, the Delhi-Mumbai-Delhi route witnessed a 4 percent increase, the Mumbai-Kolkata-Mumbai route saw a 3.7 percent increase, and the Delhi-Hyderabad-Delhi and Kolkata-Guwahati-Kolkata routes saw a 3.3 percent increase each in rentals on a month-on-month basis, the report stated.

On a month-on-month basis, goods carriers’ sales saw a significant 41 percent growth in January. Three-wheelers (goods) and passenger buses sales each saw a 32 percent increase, while maxi cabs registered a massive 59 percent growth in sales. Additionally, the rabi harvest season contributed to a 15 percent increase in agricultural trailer sales, while motor car sales witnessed a 54 percent growth, and two-wheeler sales grew by 27 percent on a month-on-month basis, according to Shriram Finance.

The report also said that in the electric vehicle (EV) sector, the previous month saw a 21 percent sequential increase in EV two-wheeler sales and a 16 percent 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 percent and inter-state by 12 percent on a month-on-month 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 strong performance in the coming months, driven by seasonal demand and supportive economic policies, he added.