Truck Rentals Hold Steady in April Despite Toll Price Hike: Shriram Mobility Bulletin

Toll hikes fail to impact freight rates as truck rentals stay flat in April 2025
Two-wheeler sales rise due lower interest rates and better rural demand
Bus sales continue to rise due to state government’s buying

Hyderabad, May 6th, 2025: The Shriram Mobility Bulletin released today reveals that truck rentals remained largely flat in April 2025, despite a 5-10% hike in toll charges across various routes. A rise in goods movement, coupled with movement of summer fruits contributed to a subtle positive undercurrent in the freight market.

Truck rentals on most key trunk routes remained unchanged. The Delhi–Chennai–Delhi corridor saw a sharp MoM increase of 2.5%, while the Delhi–Bengaluru–Delhi route recorded a decline of 1.6%. On a year-on-year (YoY) basis, truck rentals posted healthy growth — with the Kolkata–Guwahati–Kolkata route rising 14%, and the Mumbai–Chennai–Mumbai corridor up 8%.

Rural demand and improved connectivity led to a 12% MoM rise in two-wheeler sales. Bus sales grew 4%, continuing momentum from March’s all-time high. E-rickshaws with carts saw the strongest YoY growth at 77%. However, lower-than-expected government infrastructure spending impacted monthly commercial vehicle sales: tractors declined 13%, construction equipment 9%, and earth-moving equipment 19% MoM.

The electric vehicle (EV) segment showed mixed signals. While EV three-wheeler sales rose by 5% MoM, EV two-wheeler sales dropped sharply by 30%, and EV car sales declined by 4%. Despite these short-term setbacks, YoY comparisons were robust: EV cars grew by 58%, three-wheelers by 49%, and two-wheelers by 40%.

Mr. Y S Chakravarti, CEO and Managing Director, Shriram Finance Ltd. said, “Truck rentals remained subdued during April despite a 5 to 10% increase in toll charges from April 1. The undercurrent however turned slightly better as the just concluded Rabi season was good. With the summer heat waves predicted, trucking activity could get slightly impacted.”

Petrol consumption declined by 2% in April, whereas diesel consumption increased by 2% MoM, driven by higher industrial, mining, and commercial activity. FASTag transaction volumes grew by 0.9%, while the transaction value edged up by 0.03% MoM.

E-way bill generation also saw robust growth in March, with intra-state bills rising by 12% MoM and inter-state bills increasing by 11%.