Steady truck rentals set festive season as next catalyst

Truck rentals on India's major trunk routes held largely unchanged in July, with month-on-month moves the narrowest in recent months, according to the Shriram Mobility Bulletin. The Bengaluru–Mumbai–Bengaluru corridor rose 2.1% and the Kolkata–Guwahati–Kolkata route gained 1.9%. Delhi–Hyderabad–Delhi and Mumbai–Kolkata–Mumbai each ticked up about 1%, while Delhi–Chennai–Delhi and Delhi–Bengaluru–Delhi saw marginal increases of 0.9% and 0.4% respectively. Several major routes – Delhi–Mumbai–Delhi, Delhi–Kolkata–Delhi, Bengaluru–Kolkata–Bengaluru and Guwahati–Mumbai–Guwahati – were flat. Mumbai–Chennai–Mumbai slipped 0.6%.

Year-on-year, every route was higher. Delhi–Kolkata–Delhi led with 15% growth, followed by Bengaluru–Mumbai–Bengaluru at roughly 11% and Kolkata–Guwahati–Kolkata at 9%. Delhi–Mumbai–Delhi rose 8% and Mumbai–Chennai–Mumbai 7%, the bulletin said.

Global market uncertainty weighed on goods and vehicle demand. Uneven monsoon conditions affected freight movement – poor rainfall cut agricultural freight, while flooding in parts of Gujarat, Kerala and the Himalayan region caused localised disruptions. The logistics sector now looks to the festive season as the next catalyst. Sudarshan Holla, Joint Managing Director & COO of Commercial Vehicles at Shriram Finance, said freight rates remained largely unchanged, indicating a stable operating environment. He added that current expectations point to rentals holding at existing levels, although a section of the industry believes a stronger festive cargo cycle could lead to a modest increase.