Truck Rental Charges Remain Stable in July as Festive Demand Grows

Key Highlights:

• Major routes saw stable truck rental rates in July.

• Some routes witnessed freight rate hikes up to 10%.

• Passenger vehicle sales rose 7% MoM after three months.

• Tractor sales increased due to the good monsoon and Kharif sowing.

• EV three-wheeler sales jumped 19% MoM.

Truck rental charges across major routes in India stayed largely stable in July 2025, reflecting a balanced market between freight demand and vehicle availability. According to a Shriram Finance report, key transport corridors like Delhi–Mumbai–Delhi, Delhi–Kolkata–Delhi, and Mumbai–Chennai–Mumbai saw little to no change in freight rates compared to June.

Some Routes See Rate Hikes

While most routes remained steady, certain sectors witnessed increases. Freight charges on the Bengaluru–Mumbai–Bengaluru route rose 2.3% month-on-month (MoM), driven by specific cargo movement needs. The Kolkata–Guwahati–Kolkata route saw a sharp 10% increase, and Delhi–Hyderabad–Delhi rates rose 8%. The Mumbai–Chennai–Mumbai corridor also reported a 9% jump, suggesting strong long-haul freight demand in select regions.

Festive Season and Monsoon Shape Trends

July’s stability comes as preparations begin for the festive season. The near-end of the monsoon is expected to push freight rates higher in the coming months as demand for goods typically peaks before major festivals.

Vehicle Sales Show Positive Momentum

Retail vehicle sales in July showed resilience, supported by optimism in rural markets due to good monsoon rains and lower interest rates.

• Passenger vehicle sales rose 7% MoM after three months of decline.

• Maxi Cab sales surged 40%, driven by seasonal intercity travel demand.

• Tractor sales grew 15%, boosted by active Kharif sowing and good rainfall.

• Commercial tractor sales increased 14%, showing strong rural and agricultural supply chain demand.

Some Segments See Decline

Despite the positive trend, certain segments were affected by heavy rains.

• Two-wheeler sales fell 7% MoM.

• Earth-moving equipment sales dropped 38%.

• Commercial construction vehicle sales plunged 55% due to monsoon-related construction delays.

Electric Vehicle Sales Maintain Growth

The EV segment continued expanding.

• Electric three-wheeler sales jumped 19% MoM, supported by demand for last-mile and intra-city transport.

• Electric two-wheeler sales dipped 4% MoM, partly due to global rare earth magnet shortages, but year-on-year growth remained strong.

Fuel Consumption Trends

Fuel usage in July showed mixed results due to monsoon-related travel slowdowns.

• Petrol demand fell 1% MoM to 3.48 million tonnes.

• Diesel demand dropped 9% MoM to 7.35 million tonnes.

However, compared to last year, petrol demand rose 6.1% and diesel demand increased 2.2%, showing improved overall road activity.

Outlook

Overall, the transport sector in July displayed stable performance with selective growth in certain areas. With the festive season nearing, both freight activity and vehicle sales are expected to rise further in the coming months, potentially pushing rental charges upward.

Also Read: Government Confirms Minimal Impact of E20 Fuel on Commercial Vehicles

CMV360 Says

July 2025 reflected a stable yet optimistic phase for India’s transport sector. While most freight routes maintained steady rates, select corridors saw healthy demand-driven hikes. Vehicle sales, especially in the passenger and agricultural segments, improved with rural optimism. As the festive season nears and the monsoon ends, freight activity and sales are likely to rise further.