Mumbai: The logistics landscape in India is showing promising signs of recovery and growth, according to the latest Shriram Mobility Bulletin. In January 2025, truck rentals experienced a notable rebound across key trunk routes, driven primarily by the seasonal influx of winter fruits and vegetables, while commercial vehicle sales surged in tandem.
The bulletin revealed that the highly trafficked Delhi-Mumbai-Delhi route recorded a 4% increase in truck rentals, followed closely by the Mumbai-Kolkata-Mumbai route at 3.7%. Other major routes, including Delhi-Hyderabad-Delhi and Kolkata-Guwahati-Kolkata, each witnessed a 3.3% uplift on a month-on-month basis. This uptick in truck rental activity is largely attributed to the arrival of winter produce, which has intensified demand for transportation services during the rabi harvest season.
In addition to the robust truck rental performance, the commercial vehicle market is experiencing significant growth. Key segments reported impressive month-on-month gains:
- Goods Carriers: A surge of 41% in sales.
- Three-Wheeler (Goods) and Passenger Buses: Each segment recorded a 32% increase.
- Maxi Cabs: Sales jumped by an extraordinary 59%.
- Agricultural Trailers: Benefiting from the harvest season with a 15% growth.
- Motor Cars: Registered a 54% increase.
- Two-Wheelers: Experienced a 27% rise.
The electric vehicle (EV) sector also showed promising momentum, with EV two-wheeler sales increasing by 21% and EV car sales by 16% on a month-on-month basis. Furthermore, e-way bill generation in December 2024 demonstrated healthy growth, with intra-state transactions rising by 8.7% and inter-state transactions by 12%.
However, not all indicators were positive. The nationwide cold wave resulted in a reduction in commercial vehicle activity, evidenced by a 4% decline in diesel consumption and a slight dip of 0.4% in FASTag transaction volume and value.
Commenting on the trends, Y S Chakravarti, Managing Director and CEO of Shriram Finance Ltd., stated, “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.”
Looking ahead, the logistics and automotive sectors are expected to continue their upward trajectory. The January-March quarter typically marks a busy period due to heightened agricultural activities following the rabi harvest and increased manufacturing demands. Moreover, the forthcoming Kharif sowing season is anticipated to further stimulate agricultural vehicle sales. With supportive economic policies and a favorable union budget roadmap, enhanced consumer confidence is likely to fuel sustained growth across both traditional and electric vehicle segments.
In summary, despite the challenges posed by the cold wave, the logistics sector is poised for strong performance, driven by seasonal demand and a broad-based recovery in both truck rentals and commercial vehicle sales.
