Indian Logistics Sector Shows Strong Growth in June 2025, Driven by Farm Activity and EV Adoption

Key Highlights:

• Pre-Kharif farm work in June 2025 increased logistics demand on key routes.
• Truck rentals increased m-o-m on Kolkata-Guwahati (2.4%), Mumbai-Chennai (1.9%), and Delhi-Hyderabad (1.6%).
• Rentals grew y-o-y by 14% on Kolkata-Guwahati and 12% on Mumbai-Chennai.
• Fuel vehicle sales grew y-o-y; FastTag usage up 16% in volume, 18% in value.
• Construction vehicles and electric 3-wheelers saw steady growth.

The Indian logistics and transportation sector witnessed strong recovery and growth in June 2025, supported by increased agricultural activity before the Kharif season and rising electric vehicle usage. According to the June edition of the Shriram Mobility Bulletin, these two major drivers helped improve logistics operations and boost truck rental demand across the country.

Farm Activity and EVs Boost Mobility Sector

In June, pre-Kharif agricultural operations picked up pace across rural India. This rise in farming activity contributed to higher demand for freight transportation, especially for moving agricultural inputs like seeds, fertilizers, and equipment.

At the same time, the steady adoption of electric vehicles, especially in urban areas, also supported smoother and more cost-effective logistics operations. These two factors played a central role in the sector’s monthly growth.

Truck Rentals See Steady Month-on-Month and Year-on-Year Growth

Truck rental demand grew notably across key transport corridors in the country. Increased hiring activity by small, medium, and large enterprises led to greater movement of goods. Here are some specific figures shared in the Shriram Mobility Bulletin:

Kolkata-Guwahati-Kolkata route:

• Month-on-month growth: 2.4%
• Year-on-year growth: 14%

Mumbai-Chennai-Mumbai route:

• Month-on-month growth: 1.9%
• Year-on-year growth: 12%

Delhi-Hyderabad-Delhi route:

• Month-on-month growth: 1.6%
• Year-on-year growth: 9%

These numbers indicate that logistics movement remained strong across different regions, highlighting a nationwide trend of recovery and resilience in the freight sector.

Sector-Wise Insights: Fuel, Toll Payments, Construction Equipment

The bulletin also shared performance trends from related sectors:

Fuel consumption slightly dropped on a month-on-month basis, but petrol and diesel vehicle sales grew 6.4% and 1.2% respectively year-on-year.

FastTag transactions fell compared to May 2025 but still showed strong annual growth:

• Year-on-year increase in FastTag use: 16% (volume), 18% (value)

Construction vehicles showed healthy movement:

• Month-on-month growth: 12%
• Year-on-year growth: 25%

Commercial tractors also recorded an uptick:

• Month-on-month growth: 5%
• Year-on-year growth: 2%

Electric three-wheelers saw a 2% month-on-month increase, reflecting stable interest in sustainable transport for last-mile deliveries.

Looking Ahead: Positive Momentum to Continue in July

The momentum built in June is expected to carry forward into July 2025, with ongoing infrastructure development, stable fuel demand, and continued farm operations likely to further support the sector. The bulletin concludes on an optimistic note for the upcoming month, suggesting that India’s logistics landscape is set for steady, progressive growth.

Also Read: Billion Electric Mobility Secures Over 250 Contracts for Electric Truck Deployment Across India

CMV360 Says

June 2025 was a positive month for India’s logistics sector. The rise in farming work and the growing use of electric vehicles helped boost truck demand across major routes. It’s a good sign that the transport industry is picking up again. If farming, EVs, and construction keep growing like this, the logistics sector will stay strong in the coming months.