India’s Mobility Sector Sees Signs of Revival Ahead of Festive Season
The festive season is round the corner and with that the movement of goods to different parts of the country to meet consumer demand has resulted in truck rentals showing signs of recovery on key trunk routes. On a month-on-month (MoM) basis the Bengaluru-Mumbai-Bengaluru increased by 1.5%, Delhi-Kolkata-Delhi grew by 1.3%, and Guwahati-Mumbai-Guwahati grew by 1.1%. However, prolonged rains in northern India hampered trucking activity in Punjab, Himachal Pradesh, and Uttarakhand.
Vehicle retail sales in August 2025 reflected a mixed performance across categories. With the monsoons coming to an end, infrastructure development activities are expected to gain momentum which is reflected in the 7% MoM growth in Earth Moving Equipment sales. The movement of goods to meet the upcoming festive demand has resulted in a 2% MoM growth in the sales of Goods Carriers and the Kharif harvest has led to a 4% MoM growth in Agricultural Trailers.
On the other hand, on a MoM basis, car sales dipped by 3%, two-wheeler sales showed only a modest 1% growth, and commercial tractor sales saw a steep decline of 29%. Sales of maxi cabs and e-rickshaw carts also dropped by 14% and 9% respectively, reflecting a generally cautious and subdued mood among buyers. However, with the revision in GST rates, the upcoming festive season, and other positive developments, there's hope that vehicle sales across all categories will pick up in the coming months.
The electric vehicle (EV) segment sustained its strong momentum in August 2025, driven by rising consumer demand. Electric four-wheelers led the growth with a 14% MoM growth underscoring their growing adoption for urban mobility. E-2 wheelers posted a modest 1% MoM rise, while E-3 wheelers sales dipped by 3% MoM.
FASTag collections remained robust, with volumes rising 3.1% MoM to 381.96 million from 370.60 million and in value terms rose by 5.8% MoM to Rs 7,052.91 crores from Rs 6,669.12 crores.
Fuel consumption presented a mixed picture. Petrol sales, on a MoM basis rose by 1% to 3.53 MT from 3.48 MT, while diesel sales, on a MoM basis fell 11% MoM to 6.56 MT from 7.35 MT, reflecting weaker fleet movement due to heavy rains.
Mr. Y S Chakravarti, CEO and Managing Director, Shriram Finance Ltd. said, “Truck rentals remained steady to firm with manufacturers moving goods to commercial hubs in a build up to the upcoming festival season. Early indications from Kerala suggest that we are heading for a significant jump in Onam (start of Indian festival season) consumption which is a good augury. However, there are issues of stagnation at some export hubs due to import tariffs by USA.”
Published on:
23 October 2025
Published in: Lifting & Specialized Transport, September-October, 2025
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