Truck rentals remained firm across major corridors in April, while rising environmental charges and the proposed BS IV truck ban in Delhi NCR added pressure on transport operators
Truck rentals across India’s major freight corridors remained largely firm in April despite signs of softer logistics demand and slower freight movement, according to the latest Shriram Mobility Bulletin.
The report noted that trucking activity continued to stay active due to the arrival of rabi crops and summer fruits across horticulture centres, helping sustain movement on several long haul routes.
Month on month, rental trends remained mixed. Routes such as Delhi Kolkata Delhi and Kolkata Guwahati Kolkata recorded increases of around 2.4 percent and 2 percent respectively. Corridors including Delhi Mumbai Delhi, Mumbai Chennai Mumbai and Bengaluru linked routes also reported modest gains.
However, some routes such as Mumbai Kolkata Mumbai and Delhi Bengaluru Delhi saw marginal declines, reflecting softer demand in certain regions.
On a year on year basis, trucking activity remained resilient. Delhi Kolkata Delhi recorded growth of around 12 percent, while Bengaluru Mumbai Bengaluru and Mumbai Chennai Mumbai each saw growth of about 10 percent. Delhi Mumbai Delhi rose by nearly 9 percent, indicating continued long haul freight demand.
Fuel consumption trends pointed to some moderation in logistics activity. Petrol consumption declined by around 3 percent month on month, while diesel consumption fell by nearly 5 percent.
The report also highlighted pressure points for truck operators, especially the proposed ban on BS IV trucks in Delhi NCR from November 1 and increased Environmental Compensation Charges, which transport associations say could affect profitability.
Sudarshan Holla, Joint Managing Director and Chief Operating Officer, Commercial Vehicles, Shriram Finance, said, “The fiscal year has seen a stable start, with truck rentals holding firm. Peak summer heat, however, could affect trucking activity in May. Further, transport associations have announced a three day token chakka jam beginning May 21 in Delhi, protesting higher environmental charges and the proposed ban on BS IV trucks from November 1.”
Vehicle sales trends remained mixed in April. Bus and maxi cab sales rose month on month, while electric three wheelers continued to grow steadily due to adoption in commercial and last mile mobility.
The bulletin also reported strong year on year growth in electric mobility. Electric two wheelers, three wheelers and passenger vehicles grew by 69 percent, 106 percent and 125 percent respectively.
Air cargo movement remained positive across key airports, with Chennai recording growth of over 11 percent, followed by Hyderabad at nearly 10 percent and Bengaluru at close to 6 percent.
FASTag collections declined slightly in both volume and value during April, indicating lower highway traffic and freight movement compared with March.
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