• Truck rentals remained firm due to festive dispatches
  • Two-wheeler sales remain strong
  • EV sales continue to surge
  • Sales of heavy-duty trucks and construction equipment indicate strong core activity

Mumbai: India’s transportation sector strengthened through the festive period in September, with retail vehicle sales rising across most categories. Together, these trends signal resilient economic momentum, anchored by steady freight activity that held truck rentals firm on the major trunk routes and kept them above year-ago levels on every route tracked.

On a month-on-month basis, Bengaluru–Mumbai–Bengaluru led with a rise of 1.3%, followed by Delhi–Mumbai–Delhi at 1.1% and Delhi–Hyderabad–Delhi at 1%. Rentals on Delhi–Bengaluru–Delhi and Bengaluru–Kolkata–Bengaluru edged up marginally, while the remaining routes remained unchanged.

On a year-on-year basis, rentals remained higher across all the key routes tracked. Delhi–Kolkata–Delhi recorded growth of 13%, followed by Bengaluru–Mumbai–Bengaluru at 11% and Kolkata–Guwahati–Kolkata at 10%. Rentals on the remaining routes were higher by 4% to 9%.

Vehicle sales trends reflected sequential growth in September, led by core sector segments. Construction equipment sales rose by 31%, followed by earth-moving equipment at 17% and goods carriers at 13%, while motorcycles/scooters and motor cars each grew by 4%. Agricultural tractor sales declined by 15% and commercial tractors by 22%.

On a year-on-year basis, sales rose across almost all categories. Maxi cabs led with an increase of 75%, followed by three-wheeler goods vehicles at 63%. Goods carriers were higher by 40%, reflecting robust demand for heavy-duty trucks, while motorcycles/scooters grew by 33%, motor cars by 31%, construction equipment by 25% and earth-moving equipment by 19%. Agricultural trailers were the only category to record a year-on-year decline, at 27%.

Electric vehicle sales continued to surge, with all tracked categories recording strong sequential and annual growth. E-two-wheeler sales rose by 13% month-on-month, while e-three-wheeler sales were higher by 8% and electric car sales by 12%. On a year-on-year basis, electric cars grew by 143%, followed by e-three-wheelers at 113% and e-two-wheelers at 111%, underscoring the accelerating expansion of the electric mobility ecosystem.

Commenting on the trends, Mr. Sudarshan Holla, Joint Managing Director & Chief Operating Officer, Commercial Vehicles, Shriram Finance, said, “Firm truck rentals amid festive dispatches, strong two-wheeler demand, accelerating EV adoption, and healthy sales of heavy-duty trucks and construction equipment all point to resilient economic activity. Importantly, the strength seen in commercial vehicles and construction equipment indicates continued momentum in infrastructure and core sectors, reinforcing a positive outlook for the broader economy. Concerns of a potential interest rate increase during the festive season may be a sentiment dampener.”

Fuel consumption trends were mixed in September. Petrol consumption declined by 5% month-on-month, while diesel consumption rose by 2%. On a year-on-year basis, petrol and diesel consumption were higher by 7.2% and 4.9%, respectively.

FASTag collections eased in September, with volumes down 3.9% and value down 1.2% month-on-month. On a year-on-year basis, collection volumes were higher by 1%, while collection value was higher by 11%.