India’s trucking sector is making a strong comeback after two years of suffering from rising raw material prices and semiconductor shortages, as mines ramp up production, the online shopping boom continues and infrastructure projects in the country resume.

“Replacing old, polluting vehicles is an important part of greening our economy,” Finance Minister Nirmala Sitharaman said in his budget speech on Wednesday.

Adequate funds have been allocated to dispose of old vehicles and the state government will also be supported to replace old vehicles and state ambulances, he added.

“The announcement… presents a significant opportunity for modernization of the fleet,” Chief Executive Dheeraj Hinduja said in a statement.

For the third quarter ended December 31, Ashok Leyland’s profit rose to 3.61 billion Indian rupees ($44.17 million), from 57.6 million rupees a year earlier. Analysts surveyed by Refinitiv put the average at nearly Rs 3.2 billion.

“The decline in commodity prices is also positive,” said Hinduja.

Ashok Leyland, based in Chennai, Tamil Nadu, said it had sold 28,221 medium and heavy commercial vehicles in India, up 69% from the previous year. It also sold 16,405 light commercial vehicles, a 15% increase from the previous year.

Revenue from operations increased to 90.30 billion rupees from 55.35 billion rupees in the previous year.

Separately, Ashok Leyland said it sold 11,050 medium and heavy commercial vehicles (M&HCV), including trucks and buses, last month, up 28% from a year earlier, while sales volume of light commercial vehicles (LCV) jumped 17% to 6,150.

Ashok Leyland shares, which were up about 17% last year, closed down more than 1% to 147.70 rupees on Wednesday.

($1 = 81.7370 Indian rupees)