Truck rentals in India rebounded in January 2025, driven by seasonal agricultural transport, according to the Shriram Mobility Bulletin. Sales of commercial and passenger vehicles also surged. However, a cold wave across the country impacted vehicle movement and diesel consumption. The outlook for the coming months is positive, with expectations of continued growth.

“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,” stated Y S Chakravarti, Managing Director and CEO of Shriram Finance Ltd.

Across sectors growth

The Shriram Mobility Bulletin indicates that truck rental rates on major routes saw an increase in January 2025. This increase is attributed to the transportation of winter produce. The Delhi-Mumbai-Delhi route saw a 4% rise, Mumbai-Kolkata-Mumbai a 3.7% rise, and both Delhi-Hyderabad-Delhi and Kolkata-Guwahati-Kolkata routes experienced a 3.3% increase, all month-on-month.

Goods carrier sales jumped by 41% in January compared to the previous month. Three-wheeler (goods) and passenger bus sales both rose by 32%. Maxi cab sales recorded a significant 59% increase.

Agricultural trailer sales grew by 15% due to the rabi harvest season. Motor car sales saw a substantial 54% increase, and two-wheeler sales went up by 27%, all month-on-month.

The electric vehicle sector also showed positive growth in January. Sales of electric two-wheelers increased by 21% month-on-month, while electric car sales grew by 16%.

E-way bill generation, both intra-state and inter-state, exhibited consistent growth in December 2024. Intra-state bill generation rose by 8.7%, and inter-state bill generation increased by 12%, month-on-month.

The recent cold wave across India impacted vehicle movement. Diesel consumption decreased by 4% month-on-month. FASTag transaction volume and value also declined by 0.4% month-on-month, indicating reduced road activity.

Logistics sector to boost in Q4

The January-March period is traditionally a busy time for the logistics sector. Increased agricultural activity following the rabi harvest and a general rise in manufacturing contribute to this heightened activity. This has led to increased sales across various vehicle categories.

“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,” he added.

The upcoming Kharif sowing season is anticipated to further boost sales of agricultural vehicles. The electric vehicle segment is also expected to continue its growth trajectory, supported by new policy measures and potential price reductions. The overall outlook for the truck rental market and vehicle sales across all categories remains positive as India moves into the next quarter.