Festive demand, GST sops push truck rentals up 2% in September: Report

Shriram Mobility Bulletin says truck rentals rose nearly 2% across major routes in September as pre-festive trade, GST cuts, and strong demand lifted logistics activity

India’s logistics and mobility ecosystem reflected strong activity in September, supported by pre-festive demand, GST rate reductions, and improving consumer sentiment across both rural and urban markets, according to the Shriram Mobility Bulletin released on Thursday.

 

Truck rentals rise on festive trade and GST cuts 

Truck rentals saw a 1.9 per cent month-on-month (MoM) increase across major trunk routes such as Delhi–Kolkata–Delhi, Bengaluru–Mumbai–Bengaluru (up 1.5 per cent MoM), and Mumbai–Chennai–Mumbai (up 1.2 per cent MoM), reflecting heightened trade flows. The period witnessed brisk movement of goods as trade prepared for the GST Bachat Utsav, signalling a vibrant start to the festive quarter. 

Several transport hubs reported shortages of trucks during the final week of the month as industries and distributors expedited goods dispatches to retail markets. In contrast, movement in the eastern region—particularly West Bengal and along NH-19—was disrupted by heavy rainfall, impacting short-haul logistics. 

The proposed ban on entry of BS IV vehicles into Delhi from November 1, 2025, is expected to temporarily affect transport operations and could push up freight rates in the northern market in the coming months.

 

GST cuts and strong harvest boost market sentiment 

Y S Chakravarti, Chief Executive Officer and Managing Director, Shriram Finance Ltd, said, “The government’s push to lower the cost of goods with the reduction of GST rates has pushed shopping centres into a frenzy. A shortage of trucks to ferry goods to commercial hubs and festival shopping lifted spirits across the country. While the transportation industry is rejoicing the cuts in GST, the combination of above-normal monsoon rains, a strong kharif harvest, and stable policy rates has boosted both rural and urban purchasing power. The proposed entry ban of BS IV vehicles into New Delhi from November 1 is likely to cause some disruptions in goods movement.”

 

EV sales continue upward trend amid steady retail momentum 

Vehicle retail sales in September 2025 reflected steady momentum and early festive readiness. Goods carrier sales remained stable, while e-rickshaw-with-cart volumes recorded a marginal MoM decline. The electric vehicle (EV) segment maintained strong traction, with e-two wheelers rising up to 2 per cent MoM and 73 per cent year-on-year (YoY), while e-three-wheelers increased up to 330 per cent YoY, underscoring sustained adoption for commercial and last-mile mobility.

 

Fuel and toll data show seasonal moderation but long-term growth 

Fuel consumption moderated seasonally during September. Petrol sales fell 4 per cent MoM, while diesel sales rose 3 per cent MoM. On a YoY basis, petrol consumption grew 7.5 per cent and diesel 6.3 per cent, signalling continued resilience in on-road mobility and transport demand.

 

FASTag transactions saw sequential moderation, with volumes down 8.6 per cent MoM to 349.25 million and toll values lower by 7.8 per cent MoM to Rs 6,501 crore. However, on a YoY basis, volumes grew 10 per cent and values rose 16 per cent, indicating sustained improvement in highway traffic and toll efficiency.

 

E-way bill activity remains strong year-on-year 

E-way bill generation showed marginal MoM moderation but maintained double-digit YoY growth, reinforcing steady trade and logistics activity. Intra-state e-way bills fell 2 per cent MoM and rose 26 per cent YoY, while inter-state e-way bills declined 1 per cent MoM and increased 19 per cent YoY.