The latest edition of the Shriram Mobility Bulletin reveals a steady uptick in truck rentals across major freight corridors in May 2025, signalling improved economic activity tied to seasonal demand and rising consumption. The bulletin highlights an increase in fleet occupancy driven by higher disposable income and the seasonal movement of horticultural produce, leading to stronger performance in several trunk routes.
According to the report, truck rentals rose month-on-month (MoM) by 1.9% on the Delhi–Kolkata–Delhi route, 1.6% on Bengaluru–Mumbai–Bengaluru, and 1.3% on the Delhi–Mumbai–Delhi corridor. On a year-on-year (YoY) basis, the Kolkata–Guwahati–Kolkata route recorded a robust 16% increase, while the Mumbai–Chennai–Mumbai stretch saw a 10% rise, reflecting solid freight demand fuelled by the arrival of seasonal fruits and pre-monsoon goods movement.
Complementing this growth, diesel consumption rose 4% MoM, reinforcing the surge in vehicular activity, while petrol consumption saw a 10% MoM increase, largely due to vacation travel. FASTag metrics mirrored this momentum, with transaction volumes and values growing by 5.7% and 4.2% MoM, respectively.
However, not all regions experienced uniform growth. Freight operations in areas near the Indo-Pakistan border were disrupted by night-time blackouts during Operation Sindoor, affecting logistics and depressing vehicle sales in border States.
Passenger car sales fell sharply MoM—by 21% in Jammu & Kashmir, 18% in Rajasthan, and 13% in Gujarat—while maxi cab sales plunged by 43% in Gujarat, 50% in Jammu & Kashmir, 20% in Rajasthan. With a ceasefire now in place, both freight operations and vehicle sales are expected to rebound in the coming months.
Despite the temporary dip in some vehicle segments, the agricultural sector showed resilience. Commercial tractor sales rose 21% MoM, while agricultural tractors grew by 18% MoM, buoyed by the anticipation of the kharif sowing season. In contrast, other categories followed seasonal patterns of decline during monsoons—passenger car sales dropped 17%, goods carriers fell by 12%, and two-wheelers slipped 2% MoM.
Electric vehicle (EV) sales continued their upward trajectory. Electric two-wheeler sales increased 10% MoM, while electric three-wheelers posted an impressive 27% MoM growth, highlighting growing adoption in both personal and commercial mobility segments.
Commenting on the findings, Y S Chakravarti, MD & CEO of Shriram Finance Ltd., noted, “Lower interest rates and higher disposable incomes—potentially influenced by personal tax reductions—have modestly boosted consumption in May. Though Operation Sindoor caused a brief disruption, activities have largely normalised. Going forward, monsoon trends in June will be a key variable to watch.”
While April 2025 saw a marginal 4% MoM dip in e-way bill generation, YoY numbers remained strong, with intra- and inter-state e-way bills rising by 23% and 24%, respectively. This points to sustained medium-term growth in freight movement, even as near-term trends fluctuate with seasonal and geopolitical variables.
Taken together, the data suggests cautious optimism for India’s transport and mobility sector. While regional disruptions and seasonal dips remain, strong fundamentals in agricultural demand, improving consumption, and growing EV penetration continue to underpin broader momentum in logistics and mobility.
NB: Featured photo is representational.
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