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Home E-Mobility

EVs, Tractors, and Commercial Vehicles Drive Strong Mobility; Sector Gears Up for Festive Demand

Palak by Palak
August 11, 2025
in E-Mobility
Reading Time: 3 mins read
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EVs, Tractors
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  • Truck rentals stable across key trunk routes.
  • Rentals to the mountains in Himachal Pradesh could witness steep increase in August.
  • Fuel sales and FASTag collections dropped, largely due to monsoon rains.
  • Tractor sales showed sharp increase as copious monsoon rains perk agriculture sentiment.

Mumbai : The Shriram Mobility Bulletin released today indicates steady momentum in India’s mobility sector in July 2025, with stability and selective upticks across key transport segments driven by preparations for the upcoming festive season. This movement signals gradually improving activity even as the monsoon season approaches its final phase, setting the stage for a likely rise in freight rates in the coming months as product demand peaks.

Truck rentals across major national corridors remained largely stable during the month, reflecting a balanced demand-supply environment. Most key routes such as Delhi–Mumbai–Delhi, Delhi–Kolkata–Delhi, and Mumbai–Chennai–Mumbai saw no change in freight rates from June. Notably, the Bengaluru–Mumbai–Bengaluru corridor recorded a 2.3% MoM uptick, indicating region-specific cargo movement. On a YoY basis, routes like Kolkata–Guwahati–Kolkata rose 10%, Delhi–Hyderabad–Delhi saw 8% growth, and Mumbai–Chennai–Mumbai grew 9% continuing to exhibit robust long-haul freight demand.

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Vehicle retail sales in July reflected both resilience and seasonality. Passenger vehicle sales rebounded 7% MoM after three consecutive months of decline, signalling early festive readiness. Maxi Cab sales surged 40% MoM, likely on account of increased fleet deployment for seasonal intercity movement. Agricultural tractors rose 15% MoM, supported by healthy rainfall and active Kharif sowing activity, while commercial tractors climbed 14%, indicating robust rural and agri-supply chain demand. Meanwhile, two-wheeler sales declined 7% MoM, and construction-linked categories such as earth-moving equipment (-38%) and commercial construction vehicles (-55%) were impacted by ongoing rains.

Electric vehicle sales continued to show upward momentum. EV motor car sales surged 14% MoM and over 1300% YoY, while E-3 wheelers recorded a 19% MoM increase, driven by commercial and intra-city transport demand. E-2 wheelers saw a 4% MoM decline, likely due to global supply-side constraints involving rare earth magnets, though YoY performance remained strong.

Fuel consumption dipped in July due to monsoon-led mobility constraints. Petrol usage fell slightly by 1% MoM to 3.48 million tonnes, while diesel declined 9% to 7.35 million tonnes. Still, both fuels posted positive YoY growth—6.1% for petrol and 2.2% for diesel—signalling continued recovery from last year’s base and improved on-road activity overall.

FASTag performance reflected seasonal moderation, with transaction volumes falling 4.1% MoM to 370.6 million and toll values easing by 1.8% to ₹6,669 crore. On a YoY basis, however, volumes were up 13% and values surged 19% respectively, reinforcing long-term growth in highway usage and road infrastructure efficiency.

E-way bill generation for June 2025 moderated on a monthly basis but maintained an impressive YoY growth. Intra-state e-way bills dipped 2% MoM, and inter-state by 4%, consistent with reduced freight activity during monsoon months. However, intra-state generation rose 21% YoY and inter-state by 17%, while the value of goods moved increased 13% and 10%, respectively, indicating resilient trade and logistics activity.

Mr. Y S Chakravarti, CEO and Managing Director, Shriram Finance Ltd., said:
“As India gets ready for its festivals, a sense of optimism is setting in. With lower interest rates, copious monsoon rains, the rural markets are turning upbeat. Vehicle sales, more specifically two wheeler sales, could witness a strong rebound. Trucking activity over the next couple of months is expected to be strong with goods movement ahead of festivals and corporate sector cranking up.”

Tags: EV motorsEVsShriram MobilityTractors
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Palak

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