Truck rentals remain flat in Dec, Maha Kumbh boosts activity in Prayagraj

Truck rentals across most trunk routes in India remained flat in December 2024 as the winter chill and a consumption slowdown affected logistics activity. Some trunk routes, such as Kolkata-Guwahati-Kolkata and Mumbai-Chennai-Mumbai, recorded increases of 1.5 per cent and 1.3 per cent, respectively, on a month-on-month basis, while the key Delhi-Mumbai-Delhi route declined by 0.7 per cent, according to data shared in the Shriram Mobility report.

 

The Prayagraj region witnessed a 30–40 per cent spike in trucking activity in December, driven by preparations for the upcoming Maha Kumbh Mela, scheduled to take place from January 13 to February 26, 2025. However, restrictions on truck entry during the 45 days of the Mela may moderate the movement of these vehicles to and from Prayagraj, potentially exerting a small impact on truck rentals. The continued ban on the entry of BS3 and BS4 diesel vehicles in the National Capital Region (NCR) remains a challenge for truckers operating in that area.

   

Y S Chakravarti, managing director and chief executive officer, Shriram Finance Ltd, said, "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 stay subdued. The upcoming Maha Kumbh Mela in Prayagraj is driving a surge in trucking demand to that region, but restrictions during the event, until February 26, 2025, may temper this momentum. However, the Rabi harvest season and an increase in infrastructure development have spurred sales of agricultural tractors and earth-moving equipment."

 

The holiday season in December drove a 10 per cent increase in FASTag transactions and a 13 per cent rise in transaction value compared to December 2023, reflecting heightened road travel activity. Fuel consumption trends for petrol and diesel grew by 11 per cent and 6 per cent, respectively, year-on-year (YoY) in December 2024. While two-wheeler sales posted a cumulative rise of 11 per cent during April–December 2024, motor car sales experienced a marginal 0.1 per cent decline for the same period.

 

Bulk cargo handled by major ports in India witnessed a 7 per cent month-on-month (MoM) and 3 per cent year-on-year (YoY) increase, while containerised cargo registered a 12 per cent MoM and 16 per cent YoY increase in December 2024.