The Shriram Mobility Bulletin released today reveals that truck rentals remained lacklustre in February 2025 due to lower demand from the infrastructure sector. While select routes, such as Delhi-Kolkata-Delhi, which saw a 1.3% increase, and Bengaluru-Mumbai-Bengaluru, which rose by 1.6%, others like Delhi-Hyderabad-Delhi dropped by 1.1% on a month-on-month basis.
AIMTC raised concerns over the government's draft notification, which proposes increased renewal charges for registration and fitness certificates. Small fleet operators fear this move could further strain their financial viability.
The dip in truck rentals is accompanied by a slowdown in vehicle sales across all segments, as buyers delayed purchases, awaiting new fiscal-year discounts in March-April. On a month-on-month basis sales of motor cars declined by 37%, agricultural trailers and tractors dropped by 30% and 31%, respectively. The sales in the commercial vehicles segment also took a hit, with goods carriers falling by 18%, three-wheelers (Goods) declining by 10%, and commercial tractors dropping by 17%.
The electric vehicle (EV) market, continued to witness declining sales. in February, with EV 2-wheeler sales plunging by 28% and EV Car sales tumbling by 34% on a month-on-month basis. The only outlier in the sector was E-rickshaws with Carts, which recorded an 11% growth, reflecting continued demand for last-mile connectivity solutions.
The sluggish demand across sectors was also reflected in fuel consumption patterns. The drop in Petrol and Diesel consumption in February coupled with flat FASTag transaction volumes and values indicate reduced movement of goods and passengers resulting in a slowdown in road transport and logistics activity. The dip in vehicle sales and transportation demand highlights broader economic uncertainties, as businesses remain cautious ahead of the new fiscal year.
Mr. Y S Chakravarti, Managing Director and CEO, Shriram Finance Ltd. said, "The demand for trucks in February was lacklustre. The impact of the rate cut by RBI is yet to percolate down to borrowers totally as interest rate resets are underway. With March fiscal end coming, the expectation is that manufacturers across locations may move goods to commercial hubs, thus increasing trucking activity. For two wheelers, with OBD II B Emission norms kicking in from April 1, manufacturers will likely clear all vehicle stocks that do not conform to the new regulations."
Despite these challenges, optimism remains for March, as fiscal year-end business activity is expected to drive higher fleet utilization and sales. With dispatches picking up and dealers offering new fiscal-year discounts, the market could witness a recovery in demand across vehicle segments. The government's increased focus on infrastructure spending in the upcoming fiscal year is also expected to provide a boost to commercial vehicle sales and freight movement. |
