&w=3840&q=100)
Truck rentals, EV and tractor sales rise in June; car sales see decline
On a year-on-year (YoY) basis, truck rentals surged 14 per cent on the Kolkata–Guwahati–Kolkata route, 12 per cent on the Mumbai–Chennai–Mumbai corridor, and 9 per cent on the Delhi–Hyderabad–Delhi route.
The June edition of the report reflects a steady recovery in India's logistics and mobility ecosystem, supported by pre-Kharif agricultural activity and a manufacturing sector targeting exports. Farm-linked categories and electric vehicles stood out as growth drivers in automotive sales, underlining the evolving contours of India's mobility landscape.
Fuel consumption dipped MoM in June, but petrol and diesel sales rose YoY by 6.4 per cent and 1.2 per cent respectively. FASTag transaction volumes (in million) and values (in crore) also witnessed a fall MoM, but saw a YoY spike of 16 per cent and 18 per cent respectively.
Vehicle retail sales in June 2025 reflected a mixed trend. While overall numbers declined MoM due to seasonal factors, farm and infrastructure-linked categories showed resilience. Agricultural tractors grew 3 per cent MoM and 4 per cent YoY, supported by pre-Kharif demand and stable rural cash flows.
Construction equipment vehicles saw a strong uptick of 12 per cent MoM and 25 per cent YoY, driven by sustained infrastructure activity. Commercial tractors also rose 5 per cent MoM and 2 per cent YoY.
Meanwhile, motor car sales dipped 12 per cent MoM and 6 per cent YoY, and two-wheelers contracted 18 per cent MoM and 1 per cent YoY as consumers deferred discretionary purchases amid market uncertainty.
The electric vehicle segment maintained strong momentum in June 2025, supported by consumer demand and the introduction of new models. Electric two-wheelers grew 5 per cent MoM and surged 254 per cent YoY, reflecting their increasing popularity for urban mobility. Electric three-wheelers recorded a 2 per cent MoM rise and an impressive 663 per cent YoY growth, driven by demand in last-mile delivery and commercial transport. EV motor car sales also edged up 1 per cent MoM and soared 1,267 per cent YoY, reflecting broader adoption across consumer segments.
Y S Chakravarti, Chief Executive Officer and Managing Director, Shriram Finance Ltd, said: 'June 2025 underscored a positive shift in economic momentum across the transportation sector. Truck rentals saw healthy month-on-month growth, spurred by a revival in manufacturing activity. Export-driven freight shows continued resilience, setting a constructive tone for Q2. While fuel consumption and FASTag collections dipped slightly, their sharp year-on-year rise signals enduring structural recovery and seasonal mobility trends.'
'However, passenger car sales continue to reel under subdued consumer sentiment, shaped by ongoing market uncertainty. Encouragingly, early monsoon onset and increased rural economic activity have strengthened tractor demand, with agriculture-linked mobility seeing renewed traction. Meanwhile, the electric vehicle segment is accelerating ahead of forecasts, powered by robust consumer interest and a wave of fresh model launches by leading automakers,' he said.
E-way bill generation reflected steady growth in May. Intra-state e-way bill generations rose 4 per cent MoM and 19 per cent YoY, with the transaction value up 2 per cent MoM and 12 per cent YoY at Rs 15.04 trillion. Similarly, inter-state e-way bill generations grew 1 per cent MoM and 19 per cent YoY, while the value of transactions climbed 4 per cent MoM and 10 per cent YoY to Rs 13.13 trillion. The consistent uptick underscores sustained supply chain momentum driven by strong domestic consumption and early monsoon stock movements.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
5 days ago
- Indian Express
What is the FASTag annual pass scheme that Modi govt is planning to launch?
FASTag Annual Pass, FASTag New Rules: The FASTag has revolutionized the Electronic Toll Collection system in the country. This new initiative has helped to make toll operations more efficient, ensuring seamless and comfortable journeys for the National Highway (NH) users. Now, the Modi government has decided to introduce FASTag Annual Pass Scheme for private vehicle owners. The Ministry of Road Transport and Highways (MoRTH) has planned to introduce an Annual Pass for non-commercial cars, jeeps, and van. This new initiative will come into effect from August 15, 2025. As per the Gazette Notification, a person who owns a mechanical vehicle registered for non-commercial purpose, having a valid and functional FASTag, shall be eligible to obtain a pass on payment of fee of Rs 3000 which shall be valid for one year or for two hundred crossings through any fee plaza on a national highway, whichever is earlier, irrespective of the fee leviable at each fee plaza. In a written reply to Rajya Sabha, Union Minister Nitin Gadkari said that the Annual Pass will not be applicable to State Highways/Expressways as they don't fall under the jurisdiction of Central Government. 'Provided that in a closed user fee collection system, entry and exit of a mechanical vehicle through a fee plaza shall be considered as a single crossing. The Annual pass is applicable on National Highway (NH) and National Expressway (NE) fee plazas,' he said. The Union Minister also stated that there is expected to be savings for vehicle owners. ' besides reducing congestion at fee plazas, the actual savings for vehicle owners and the government's revenue growth will depend on several factors including actual usage of vehicles and fee plaza crossings made in a year,' Gadkari added. Earlier this month, the NHAI further streamlined its policy for the Toll Collecting Agencies and Concessionaires.
Time of India
21-07-2025
- Time of India
No wider adoption: Why Fastag's growth beyond toll payments is limited
The Fastag system faces challenges with inadequate bank-based customer support. Fastag may be used for toll payments pan India but its adoption for wider use cases still remains severely limited. The electronic toll collection system has shown negligible growth in the last fiscal year. The system's growth, including transaction volumes and participating banks, has remained largely static. According to National Payments Corporation of India statistics, Fastag processes between 350-380 million monthly transactions, maintaining consistent levels since January 2024. The monetary settlements have remained within Rs 6,000 to Rs 6,500 crore during this period. The number of banks offering Fastag services has stayed at 38, unchanged since May 2023. UPI , the leading digital payment platform, has expanded its network to include 675 participating banks, showing significant growth from 445 banks in May 2023. Industry experts point to the limited application of Fastag beyond toll collection as a primary reason for its stalled progress. Also Read | FASTag annual pass: How to purchase, validity, cost, trip limit & more - Top 15 FAQs answered "Toll payments are undertaken by consumers only that many times in a month or a year, and even for commercial vehicles, almost the entire base has been already covered, and the sector is also not growing exponentially," said a top executive at a digital payments firm which processes Fastag payments. "Overall, the payment method has stagnated at a certain level, the executive said according to an ET report. Why is Fastag growth stalled? Initially designed for digital toll collection on highways, Fastag's intended scope included various vehicle-related payments, including fuel purchases and parking fees. Fastag growth stalled "While a limited number of large commercial properties like shopping malls have started using Fastag as a payment method for their parking fees, fuel has shown almost no adoption," said the founder of a fintech startup offering this service. Smaller commercial properties have been reluctant to implement Fastag systems due to substantial costs associated with installing compatible gates and tag readers. "A large mall might be processing around Rs 30 to 40 lakh in parking payments per month, for that, the installation and maintenance might be a bit cumbersome," the founder added. The installation expense for each gate is estimated to be between Rs 1.5 to 2 lakh, with additional upkeep costs to be considered. "There is no margin to be made on fuel payments, hence that use case is also not picking up," said the executive of a digital payments firm cited above. Also Read | FASTag-based Annual Pass announced! Nitin Gadkari says new pass to have fee of Rs 3,000 - details here In India, kerbside parking remains predominantly cash-based or QR code-dependent, with no significant movement towards Fastag adoption, despite being the country's most common parking method. Financial industry experts indicate that fintech companies' disappointment with digital payment revenue generation has deterred private enterprises from new payment ventures. The growth in UPI adoption was primarily driven by substantial marketing investments that provided customer incentives. "No new-age fintech is pumping funds into digital payments right now. Fastag and such payment methods needed incentives to get more customers to use them readily, in the absence of incentives new use-cases are not building up," said the founder of a digital payments startup. The Fastag system faces challenges with inadequate bank-based customer support, particularly regarding blocked tags and top-up difficulties. Despite distributors like PhonePe and Amazon Pay being involved, they depend on banks for customer service, which often fails to meet user expectations. "Banks make money on the float they get through these payments, otherwise there is hardly any incentive for others to offer superior customer experience," said the founder cited above. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
21-07-2025
- Time of India
Fewer use cases take toll on Fastag growth
Fastag, the modern electronic payment system for vehicle owners and the entire travel ecosystem, is stagnating, with almost negligible growth in the last financial year. Even the number of transactions and banks going live on the payment method remained sluggish during the year. Lack of evolution of new use cases for Fastag, beyond toll payments, is one of the key factors hindering its growth, said people in the know. 'Toll payments are undertaken by consumers only that many times in a month or a year, and even for commercial vehicles, almost the entire base has been already covered, and the sector is also not growing exponentially,' said a top executive at a digital payments firm which processes Fastag payments. 'Overall, the payment method has stagnated at a certain level.' Data shared by the National Payments Corporation of India , which powers settlements on Fastag, showed 350-380 million transactions are processed on Fastag every month, which has stayed constant since January 2024. In terms of fund settlement, it has hovered between Rs 6,000 and Rs 6,500 crore in the same period. Around 38 banks are currently active on Fastag, unchanged since May 2023. While payment methods are not directly comparable, for context, Unified Payments Interface (UPI), the most popular digital payment method, currently has 675 banks live on the platform. In May 2023, there were 445 banks. While Fastag was initiated with the aim of digitising highway tolls, its use cases were conceived to be eventually expanded to everything concerning a vehicle such as fuel purchases, and parking payments, among others. 'While a limited number of large commercial properties like shopping malls have started using Fastag as a payment method for their parking fees, fuel has shown almost no adoption,' said the founder of a fintech startup offering this service. The high cost of installing Fastag-capable gates and tag readers has discouraged smaller commercial estates from adopting them. 'A large mall might be processing around Rs 30 to 40 lakh in parking payments per month, for that, the installation and maintenance might be a bit cumbersome,' the founder added. He said the average cost of installing a single gate could be around Rs 1.5 to 2 lakh, in addition to maintenance cost. 'There is no margin to be made on fuel payments, hence that use case is also not picking up,' said the executive of a digital payments firm cited above. Kerbside parking, one of India's most popular ways of parking vehicles, has also shown no signs of adopting Fastag as a payment method, with transactions mostly through QR codes or cash. Industry insiders also pointed out that the overall disillusionment among fintech startups on generating revenue from digital payments is one of the major reasons behind private firms not taking any fresh initiative on payments. They added that UPI grew in popularity due to large marketing spends into the ecosystem which incentivised customers towards adoption. 'No new-age fintech is pumping funds into digital payments right now. Fastag and such payment methods needed incentives to get more customers to use them readily, in the absence of incentives new use-cases are not building up,' said the founder of a digital payments startup. Fastag is also plagued by inefficient bank-led customer service, especially during instances of blacklisted tags or recharge issues. While PhonePe, and Amazon Pay are among Fastag distributors, they rely on banks for customer service, where the experience is often subpar. 'Banks make money on the float they get through these payments, otherwise there is hardly any incentive for others to offer superior customer experience,' said the founder cited above.
