Truck rentals improved across key routes in May due to increased consumption triggered by the rising disposable cash and the arrival of seasonal fruits, resulting in higher fleet occupancy, particularly across horticultural hubs.
Data from the Shriram Mobility Bulletin released on Wednesday showed a positive momentum across most key trunk routes.
The Delhi–Kolkata–Delhi corridor witnessed a month-on-month (m-o-m) rise of 1.9 per cent, while the Bengaluru–Mumbai–Bengaluru route grew by 1.6 per cent and the Delhi-Mumbai-Delhi route saw a 1.3 per cent increase in truck rentals, the bulletin said. The rentals on the Delhi-Chennai-Delhi route, however, remained flat at a 0.5 per cent m-o-m growth. Rental rates remained unchanged on the Bengaluru-Kolkata-Bengaluru route on a sequential basis.
On a year-on-year (y-o-y) basis, truck rentals surged 16 per cent on the Kolkata–Guwahati–Kolkata route and 10 per cent on the Mumbai–Chennai–Mumbai corridor.
Freight movement in some parts of the Indo-Pakistan border areas was disrupted due to night-time blackouts during Operation Sindoor, temporarily halting logistics operations. Vehicle sales and rentals in the border states were also impacted. While motor car sales fell by 21 per cent m-o-m in Jammu & Kashmir, 18 per cent in Rajasthan and by 13 per cent in Gujarat, while Maxi cabs fell by 43 per cent in Gujarat, by 50 per cent in Jammu & Kashmir and by 20 per cent in Rajasthan. However, following the announcement of a ceasefire both rentals and sales are expected to improve in the coming months, says the bulletin.
Apart from the arrival of seasonal fruits, increase of goods movements due to pre-stocking for the monsoon season has also played a part in the improvement in truck rentals, says the bulletin.
YS Chakravarti, CEO and Managing Director, Shriram Finance, said, “Lower interest rates and higher disposable incomes—possibly influenced by reductions in personal income tax rates—may have contributed to an increase in disposable cash, which in turn appears to have led to a modest uptick in the consumption of goods and services in May.”
He noted that Operation Sindoor had a “minor blip” in business activities, both in terms of goods movements and vehicle sales in border states, but has since returned to normal. “It is important to track monsoon activity in June,” he added.