India's Logistics Sector Surges Amid Winter Harvest Boom

In January, India's key truck rental routes rebounded due to increased demand for transportation driven by the winter harvest. The surge in commercial vehicle sales and e-way bill generation signals robust growth in the logistics sector, despite challenges posed by cold waves affecting vehicle movement.


Devdiscourse News Desk | Updated: 05-02-2025 19:32 IST | Created: 05-02-2025 19:32 IST
India's Logistics Sector Surges Amid Winter Harvest Boom
Cargo trucks (ANI File Photo). Image Credit: ANI
  • Country:
  • India

Truck rentals across major Indian routes demonstrated a robust recovery in January, spurred by the influx of winter fruits and vegetables that have driven up transportation and storage demands, according to a report from Shriram Mobility. The bulletin noted rate increases of 4 per cent on the Delhi-Mumbai route, 3.7 per cent on the Mumbai-Kolkata route, with the Delhi-Hyderabad and Kolkata-Guwahati routes both rising by 3.3 per cent compared to the previous month.

The January-March period is a crucial time, marked by bustling agricultural activities following the rabi harvest and increased manufacturing efforts across various sectors. This surge in activity has translated into significant sales boosts for commercial vehicles such as Goods Carriers, Three Wheeler (Goods), Passenger Buses, Maxi Cabs, and Agricultural Trailers in January, Shriram Mobility reported.

Goods Carrier sales saw a remarkable 41 per cent increase, while Three-wheeler (goods) and Passenger Buses experienced a 32 per cent rise. Maxi Cabs reported enormous sales growth of 59 per cent. Agricultural trailer sales benefited from a 15 per cent increase, driven by the rabi harvest season. The motor car segment recorded a 54 per cent rise, with two-wheelers up by 27 per cent month-on-month. Electrically powered vehicles also saw positive trends, with a 21 per cent rise in e-scooter sales and a 16 per cent increase in electric car sales. December's e-way bill generation displayed steady growth, with intra-state bills up by 8.7 per cent and inter-state by 12 per cent from the previous month.

Y S Chakravarti, Managing Director and CEO of Shriram Finance Ltd., highlighted the positive implications of rising rental rates for the logistics sector, attributing it to the demand spike due to the winter crop yield. Yet, he also recognized the adverse impact of severe cold waves on vehicle movement, affecting the supply chain. Nevertheless, the sector expects intensified activity in the upcoming busy quarter, fostering optimism for the industry's trajectory buoyed by recent economic strategies outlined in the national budget.

As the nation transitions into the subsequent quarter, the truck rental and commercial vehicle sales outlook remains promising, with the forthcoming Kharif sowing season anticipated to further fuel agricultural vehicle demand. While the electric vehicle segment faces hurdles, it is projected to continue its expansion aided by emerging policy supports and possible price cuts, as per the bulletin's projections. Shriram Finance Limited, serving as the flagship enterprise of the Shriram Group, issues the Shriram Mobility Bulletin monthly, offering stakeholders detailed insights into India's logistics and automotive markets through analytical data collected from a vast network of fleet owners and vehicle dealers.

(With inputs from agencies.)

Give Feedback