MUMBAI, 9 September 2025: Electric vehicle (EV) sales in India continued their rapid rise in August 2025, establishing the sector as a key growth driver in the country’s changing transportation landscape. EV two-wheeler sales increased to 91,656 units, up 1% from July and up an impressive 116% year on year. Electric car sales increased 14 percent month on month to 14,089 units, representing a staggering 982 percent increase from August 2024. Electric three-wheeler sales increased 368 percent year on year, despite a slight monthly dip.
This continued momentum reflects India’s shift to cleaner, more sustainable transportation. With policy support, consumer adoption, and technological innovation all coming together, the EV sector is no longer a niche—it is becoming mainstream and is regarded as India’s next global success story.
During August, vehicle buyers largely waited and watched, anticipating rate cuts by the Goods and Services Tax (GST) Council. This resulted in a temporary decrease in overall vehicle demand. Car sales fell 3% from July, while commercial tractor sales dropped by 29%. However, with GST rates on regular consumption items now lower, commercial sentiment in major hubs has improved.
Truck rentals remained steady to firm on major trunk routes, with manufacturers pushing shipments ahead of increased demand during the upcoming holiday season. Early indicators from Kerala, particularly in the run-up to Onam, suggest strong consumption trends.
“Truck rentals have turned positive month after month ahead of the upcoming festive season,” said Y S Chakravarti, Shriram Finance’s Managing Director and CEO. “Early indications from Kerala suggest that we are in for a significant increase in Onam consumption, which is a good sign. However, some export hubs are experiencing stagnation as a result of the United States’ import tariffs.
Heavy rains disrupted freight movement across Punjab, Himachal Pradesh, and Uttarakhand, causing critical infrastructure damage and affecting fleet mobility. As a result, diesel consumption in August fell by 11% from July.
Despite these challenges, year-on-year growth in truck rental rates was strong. The Delhi-Mumbai, Mumbai-Kolkata, and Bengaluru-Mumbai routes saw rental increases of up to 8% over August 2024. The Delhi-Kolkata route increased by 1.3 percent month over month, while the Bengaluru-Kolkata and Guwahati-Mumbai routes increased by 1.0 and 1.1 percent, respectively.
FASTag collections reached ₹7,052.91 crore in August, up 5.8% from July and 26% year on year. Total transactions reached 381.96 million, a 16 percent increase over the same period last year.
As infrastructure and policy frameworks align, electric mobility is driving the transition to a cleaner, smarter transportation future. India is not only witnessing but also driving the electric transition.
Source: Shriram Finance
