Festive Surge Drives Record Vehicle Sales: Shriram Mobility Bulletin

India's mobility sector experienced robust growth in vehicle sales during October, driven by the festive season, even as diesel consumption showed signs of weakness due to subdued activity in agriculture and mining sectors.

Vehicle sales across categories reached record levels during the month, with two-wheelers leading the surge. Motorcycle and scooter retail sales jumped 144% month-on-month to 30.6 lakh units in October from 12.5 lakh units in September. Year-on-year growth stood at 52% compared to October 2024.

Motor car sales also demonstrated strong momentum, rising 83% month-on-month to 5.18 lakh units, marking an 11% increase over the previous year. The commercial vehicle segment showed similar strength, with goods carriers registering 95,304 units sold in October, up 58% from September and 23% higher year-on-year.

Electric vehicle adoption continued its upward trajectory, with e-two-wheeler sales reaching 1.32 lakh units in October, representing 40% month-on-month growth and 39% year-on-year increase. Electric three-wheelers saw remarkable expansion, surging 324% year-on-year to 32,000 units.

Y.S. Chakravarti, Managing Director and CEO of Shriram Finance, noted that Deepavali delivered exceptional results with truck rental rates remaining firm and automotive sales achieving record highs across all categories.

Truck rental rates on major routes remained largely stable or showed modest gains during October. The Delhi-Mumbai-Delhi route saw rates increase 1.9% month-on-month to Rs 1.65 lakh, while registering 9% year-on-year growth. The Delhi-Hyderabad-Delhi route rose 1% to Rs 1.96 lakh, up 9% from the previous year.

However, fuel consumption patterns revealed underlying weaknesses in certain sectors. Diesel consumption declined marginally by 0.5% year-on-year to 7.61 million metric tons, despite a 12% month-on-month increase. The bulletin attributed this to poor offtake from agriculture, mining, and related infrastructure activities.

Petrol consumption showed stronger performance, rising 8% month-on-month and 7% year-on-year to 3.65 million metric tons, driven by festive travel.

The transport sector received a boost from the government's decision to defer the entry ban of non-BS VI vehicles into the National Capital Region by one year, though restrictions on BS-II and BS-III vehicles continued from November 1. The arrival of Kharif crop produce also contributed to increased truck movement during the period.

FASTag toll collections decreased 3.8% month-on-month in terms of volume to 348.67 million transactions, though values declined 4.4% to Rs 6,450 crore. However, year-on-year growth remained positive at 1% in volume and 5% in value terms.

E-way bill generations for inter-state movement increased 6% month-on-month to 4.62 crore in September, with the total value of goods transported rising 8% to Rs 14.34 lakh crore.

Looking ahead, Chakravarti indicated that while the focus remains on sustaining the festive momentum, a moderation in vehicle demand is anticipated in the coming weeks.