India’s mobility sector shows steady growth in July 2025, with stable freight rates, rising tractor and EV sales, and improving rural demand, signaling optimism ahead of the festive season.
08 Aug 2025 | 1180 Views | By Sarthak Mahajan
India’s mobility sector demonstrated steady performance in July 2025, with stable freight movement and selective growth across vehicle segments, according to the latest Shriram Mobility Bulletin. The report highlights a balanced demand-supply scenario in trucking, a rebound in certain vehicle sales, and continued long-term growth in highway usage, even as ...
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India’s mobility sector demonstrated steady performance in July 2025, with stable freight movement and selective growth across vehicle segments, according to the latest Shriram Mobility Bulletin. The report highlights a balanced demand-supply scenario in trucking, a rebound in certain vehicle sales, and continued long-term growth in highway usage, even as monsoon rains temporarily dampened some economic activities.
Truck rentals on major national corridors remained largely unchanged compared to June 2025. Key routes such as Delhi–Mumbai, Delhi–Kolkata, and Mumbai–Chennai reported stable freight rates. However, the Bengaluru–Mumbai route saw a 2.3% month-on-month (MoM) increase, suggesting regional variations in cargo demand.
On a year-on-year (YoY) basis, several long-haul routes registered notable growth: Kolkata–Guwahati freight rates rose by 10%, Delhi–Hyderabad by 8%, and Mumbai–Chennai by 9%, indicating sustained demand for inter-state freight movement.
Rental demand for trucks heading to mountainous regions in Himachal Pradesh is expected to rise sharply in August, likely due to seasonal logistics needs ahead of the festive period.
Passenger vehicle sales increased by 7% MoM in July, recovering from three consecutive months of decline. This uptick is being attributed to early preparations for the upcoming festive season.
Sales of maxi cabs surged 40% MoM, reflecting increased deployment of fleets for intercity travel. Tractor demand showed strong growth, with agricultural tractor sales rising 15% MoM and commercial tractors up 14%, supported by favorable monsoon conditions and active Kharif sowing.
In contrast, two-wheeler sales declined by 7% MoM, while construction-linked vehicle segments were significantly affected. Earth-moving equipment sales dropped 38%, and commercial construction vehicles fell 55%, largely due to disruptions caused by monsoon rains.
Electric vehicle (EV) sales maintained upward momentum. EV motor car sales rose 14% MoM and over 1,300% YoY, signaling growing adoption in the passenger vehicle segment. E-3 wheelers saw a 19% MoM increase, driven by demand in last-mile and intra-city logistics.
E-2 wheelers, however, experienced a 4% MoM decline, possibly due to global supply chain constraints related to rare earth magnets. Despite this, their YoY performance remained positive, indicating underlying market strength.
**Fuel Consumption and FASTag Transactions Dip Monthly, Rise Annually**
Fuel consumption declined in July, with petrol usage falling 1% MoM to 3.48 million tonnes and diesel down 9% to 7.35 million tonnes, primarily due to reduced mobility during heavy rains. However, both fuels recorded positive YoY growth—petrol up 6.1% and diesel by 2.2%—suggesting a broader recovery in on-road activity.
FASTag transaction volumes decreased 4.1% MoM to 370.6 million, with toll values easing 1.8% to ₹6,669 crore. Despite the monthly dip, YoY figures showed robust growth, with volumes up 13% and values rising 19%, underscoring increasing reliance on national highways and improved road infrastructure efficiency.
E-way bill generation for June 2025 saw a monthly decline—down 2% for intra-state and 4% for inter-state bills—consistent with seasonal monsoon-related slowdowns in freight movement. However, YoY growth remained strong, with intra-state bills up 21% and inter-state bills rising 17%. The value of goods transported also increased by 13% (intra-state) and 10% (inter-state), pointing to resilient trade and logistics activity.
Y S Chakravarti, CEO and Managing Director of Shriram Finance Ltd., noted that economic sentiment is improving as the country prepares for the festive season. “With favorable monsoon conditions and lower interest rates, rural demand appears to be gaining strength. We may see a rebound in two-wheeler sales in the coming months. Additionally, trucking activity is expected to pick up as goods movement increases ahead of festivals,” he said.
Shriram Finance Limited, established in 1979, is the flagship company of the Shriram Group. It is one of India’s largest retail asset financing NBFCs, with Assets under Management exceeding ₹2.72 trillion. The company offers financing for commercial vehicles, two-wheelers, tractors, MSMEs, gold, personal loans, and working capital. It operates through a network of 3,225 branches and serves over 97 lakh customers across India.
The Shriram Mobility Bulletin is a monthly publication by Shriram Finance Limited that provides insights into India’s logistics and automobile sectors. Based on data collected from fleet owners and vehicle dealers across the country, the bulletin analyzes trends to inform stakeholders about mobility and transportation dynamics.