• Festive demand keeps truck rentals strong
  • Entry ban on BS IV trucks into the NCR region leads to confusion at the borders
  • Two-wheeler sales robust month-on-month in October
  • Sales of cars and construction equipment encouraging

Mumbai: India’s transportation sector gathered pace in October, supported by festive season despatches and a broad-based pickup in retail vehicle sales ahead of Diwali, pointing to healthy consumption and freight activity.

Festive demand kept truck rentals strong, with rentals higher year-on-year across all the key routes tracked. Delhi–Kolkata–Delhi recorded growth of 13%, followed by Bengaluru–Mumbai–Bengaluru at 12% and Kolkata–Guwahati–Kolkata at 9%. Rentals on the remaining routes were higher by 4% to 7%. On a month-on-month basis, rentals held firm, with Bengaluru–Mumbai–Bengaluru rising by 2% and Delhi–Chennai–Delhi by 1.4%.

Truck operators, however, faced challenges in the National Capital Region (NCR) as the entry ban on BS IV trucks kicked in, leading to confusion at the borders.

Two-wheeler sales were robust in October, with motorcycles/scooters rising by 29% month-on-month, the highest growth among all vehicle categories tracked, as festive buying picked up ahead of Diwali.

Sales of cars and construction equipment were also encouraging. Motor car sales rose by 17% month-on-month, while construction equipment sales grew by 25% and earth-moving equipment by 7%. Construction equipment sales were also higher by 21% year-on-year.

Among other categories, three-wheeler goods vehicles and agricultural trailers rose by 20% each month-on-month, followed by commercial tractors at 15% and goods carriers at 11%. Maxi cab sales declined by 11% and bus sales by 2%.

On a year-on-year basis, vehicle sales trends were mixed against a high base, as last year’s festive sales peaked in October. Three-wheeler goods vehicles led with an increase of 25%, followed by buses at 14% and agricultural tractors at 7%. Motorcycles/scooters declined by 28%, commercial tractors by 24%, motor cars by 15%, earth-moving equipment by 12% and agricultural trailers by 11%, while goods carriers were marginally lower.

Electric vehicle sales continued their strong run on a year-on-year basis. Electric car sales more than doubled with growth of 115%, followed by e-three-wheelers at 93% and e-two-wheelers at 62%, underscoring the steady expansion of the electric mobility ecosystem. On a month-on-month basis, e-two-wheeler sales rose by 8% and e-three-wheeler sales by 5%.

Commenting on the trends, Mr. Sudarshan Holla, Joint Managing Director & Chief Operating Officer, Commercial Vehicles, Shriram Finance, said, “Festive season despatches kept truck rentals very strong in October. We expect the momentum to continue till the first fortnight of November. Truck operators are experiencing challenges in the NCR region as the entry ban on BS IV trucks has kicked in. Two-wheeler, passenger car and construction equipment sales have been robust month-on-month and, with Diwali this month, the sales momentum may continue.”

Fuel consumption rose in October. Petrol consumption increased by 4% month-on-month, while diesel consumption rose sharply by 20%, reflecting festive freight movement. On a year-on-year basis, petrol and diesel consumption were higher by 3.1% and 11.7%, respectively.

FASTag collections improved in October, with volumes up 1% and value up 2.3% month-on-month. On a year-on-year basis, collection volumes were lower by 6%, while collection value was higher by 9%.