Diesel consumption declines on a month-on-month basis as cold waves in northern India reduced fleet activity.

Mumbai, February 5, 2025: The latest Shriram Mobility Bulletin reveals that truck rentals across key trunk routes in India staged a smart recovery in January 2025 due to the arrival of winter fruits and vegetables. The Delhi-Mumbai-Delhi route witnessed a 4% increase, the Mumbai-Kolkata-Mumbai route rentals increased by 3.7%, and the Delhi-Hyderabad-Delhi and Kolkata-Guwahati-Kolkata routes saw a 3.3% increase each on a month-on-month basis.

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. This uptick in activity has resulted in a surge in the sales of commercial vehicles like Goods Carriers, Three Wheeler (Goods), Passenger Buses, Maxi Cabs and Agricultural Trailers in January 2025.

On a month-on-month basis, Goods Carriers sales saw a significant 41% growth in January. Three-wheelers (goods) and Passenger Buses sales each saw a 32% increase, while Maxi Cabs registered a massive 59% growth in sales. Additionally, the rabi harvest season contributed to a 15% increase in agricultural trailer sales. Motor Car sales witnessed a 54% growth, and Two-wheeler sales grew by 27% on a month-on-month basis.

In the electric vehicle (EV) sector, January saw a 21% month-on-month increase in EV 2 wheeler sales and a 16% increase in EV car sales. E-way bill generation in the month of December 2024, both intra-state and inter-state, showed consistent growth, with intra-state bill generation rising by 8.7% and inter-state by 12% on a month-on-month basis.

The cold wave across the country resulting in lesser number of commercial vehicles on the road can be seen from the fact that diesel consumption reduced by 4% on a month-on-month basis and FASTag transaction volume and value, on a month-on-month basis, also declined by 0.4%.

Mr Y S Chakravarti, Managing Director and CEO, Shriram Finance Ltd. said, "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. However, the cold wave conditions prevailing in most parts of the country have adversely affected vehicle movement, causing some disruptions in the supply chain.

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. 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."

As India moves into the next quarter, the outlook for the truck rentals and sales of vehicles across all categories remains positive. The upcoming Kharif sowing season is also expected to boost the sales of agricultural vehicles. The EV segment, while facing challenges, is likely to see further growth with new policy measures and potential price reductions.