The upcoming Maha Kumbh Mela in Prayagraj is driving a surge in trucking demand to the region. However, restrictions during the event, lasting until February 26, 2025, may temper this momentum, according to Y.S. Chakravarti, Managing Director & Chief Executive Officer of Shriram Finance Ltd (SFL).
However, the Rabi harvest season and an increase in infrastructure development have spurred sales of agricultural tractors and earth-moving equipment.
Trucking activity in Prayagraj region saw a significant 30-40% increase, driven by preparations for the Maha Kumbh, per SFL’s mobility bulletin.
“December 2024 marked a tepid yet stable period for India’s trucking and mobility sector. While truck rentals on major trunk routes remained steady, fleet occupancy levels continued to remain subdued, “ said Chakravarti.
The Bulletin reported that FASTag transactions witnessed a 13% rise (YoY) as holiday revellers took year-end vacations. However, two-wheeler and motorcar sales remain subdued.
Further, the continued entry ban of BS 3 & BS 4 diesel vehicles into the NCR region impacts logistics activity.