Truck rentals remained subdued in February 2025 due to weaker demand from the infrastructure sector, according to a report by Shriram Finance. While certain routes, such as Delhi-Kolkata-Delhi and Bengaluru-Mumbai-Bengaluru, saw marginal increases of 1.3% and 1.6%, respectively, others like Delhi-Hyderabad-Delhi declined by 1.1% on a month-on-month basis.
Meanwhile, AIMTC voiced concerns over the government’s draft notification proposing higher renewal fees for registration and fitness certificates. Small fleet operators fear the move could further pressure their financial sustainability.
The decline in truck rentals coincided with a slowdown in vehicle sales across all segments, as buyers deferred purchases in anticipation of new fiscal-year discounts in March-April. On a month-on-month basis, motor car sales dropped by 37%, while agricultural trailers and tractors fell by 30% and 31%, respectively. The commercial vehicle segment also saw a downturn, with goods carriers declining by 18%, three-wheelers (Goods) by 10%, and commercial tractors by 17%.
The electric vehicle (EV) market continued its downward trend in February, with EV two-wheeler sales plunging 28% and EV car sales tumbling 34% month-on-month. However, E-rickshaws with carts stood out as an exception, registering an 11% growth, driven by sustained 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 persists for March, with fiscal year-end business activity expected to drive higher fleet utilization and sales. As dispatches increase and dealers roll out new fiscal-year discounts, demand across vehicle segments could see a rebound. Additionally, the government’s enhanced focus on infrastructure spending in the upcoming fiscal year is anticipated to support commercial vehicle sales and boost freight movement.
