October Sees Vehicle Sales Spike as Festive Discounts Drive Growth; Truck Rentals Ease Following Pre-Holiday Surge
Mumbai – The post-festive market landscape for truck rentals has shown signs of moderation, aligning with seasonal trends after a period of robust activity. Following a significant boost before the festive period, truck rentals eased in October. Routes such as Mumbai-Kolkata-Mumbai recorded a 2.1% drop, Bengaluru-Mumbai-Bengaluru saw a 1.6% decline, and Delhi-Bengaluru-Delhi registered a 1.4% dip month-over-month. Most other routes remained relatively stable.
Despite this cooling in truck rentals, the festive season delivered a strong lift for vehicle sales. October 2024 witnessed an impressive surge in the sale of new passenger vehicles and two-wheelers, with month-on-month growth of 76% and 72%, respectively. On a year-over-year basis, passenger vehicles and two-wheelers saw sales growth of 24% and 37%, respectively. Electric vehicles (EVs) were not left behind, as the sector saw two-wheeler and passenger car sales climb by 24% and 28% month-over-month.
Shriram Finance’s Managing Director and CEO, Y S Chakravarti, attributed this boost to “aggressive festive discounts by manufacturers and attractive schemes,” emphasizing that these strategies propelled sales during October. Chakravarti noted, “Truck rentals and fleet occupancy usually see a dip after the Diwali period, a predictable pattern as demand temporarily subsides. The upcoming wedding season, however, should maintain a positive outlook for vehicle sales.”
Post-monsoon activity also played a role in shaping the market. Infrastructure projects resumed at a rapid pace, resulting in a sharp 75% month-on-month increase in Earth Moving Equipment sales and a 44% uptick in Commercial Construction Equipment Vehicle sales.
The agricultural sector contributed to the market’s robust performance, spurred by positive rural sentiment, strong monsoon conditions, and promising crop yield expectations. This was reflected in a 39% month-on-month increase in Commercial Tractor sales and a 67% rise in Agricultural Trailer sales.
Smaller vehicle categories, such as e-rickshaws with carts and goods three-wheelers, showed consistent growth, indicating widespread demand across transportation needs.
The holiday season also spurred travel, impacting both private and public transportation and increasing goods movement. This was highlighted by an 8.3% rise in toll collections via FASTag and a surge in fuel consumption, with diesel sales up 20% and petrol up 8% month-over-month.
The post-festive season, therefore, painted a mixed yet optimistic picture, with significant gains in vehicle sales balanced by the expected normalization in truck rentals.
