Truck Rental Rates Stay Strong Amid Rising Costs
Indiaās mobility and logistics activity remained stable in March, with truck rentals across key trunk routes holding firm and witnessing marginal month-on-month increases. This firmness was supported by year-end dispatches and rising operating cost pressures, even as overall freight movement remained steady.
On a year-on-year (YoY) basis, trucking activity showed resilience across most routes. The DelhiāKolkataāDelhi corridor recorded a 10 per cent increase, followed by the BengaluruāMumbaiāBengaluru route at 9 per cent. The DelhiāMumbaiāDelhi, MumbaiāChennaiāMumbai and DelhiāChennaiāDelhi routes each registered growth of 8 per cent, underscoring sustained inter-city freight movement.
Month-on-month (MoM), limited increases were observed across several corridors, indicating stable demand conditions. Rentals on the DelhiāKolkataāDelhi route rose by 1.8 per cent, BengaluruāMumbaiāBengaluru by 1.5 per cent, while the DelhiāMumbaiāDelhi and MumbaiāChennaiāMumbai routes increased by 1.2 per cent each.
The firmness in rentals can be attributed to continued industrial and consumption-led movement at the close of the financial year, coupled with stable fleet availability and the absence of major supply-side disruptions. However, LPG tanker movement was significantly impacted during the month due to curtailed supplies.
Looking ahead, the ongoing conflict in the Middle East is likely to exert further pressure on logistics operations through rising costs. Tyre manufacturers have announced price hikes effective April 1, driven by higher crude oil prices and increased input costs. This, along with the seasonal increase in toll charges from April 1, is expected to push truck rentals higher in the coming months. Additionally, an early onset of summer could lead to some moderation in activity levels.
Vehicle sales trends presented a mixed picture on a month-on-month basis. Passenger vehicle segments performed strongly, with motor car sales rising 11 per cent and two-wheeler sales increasing 14 per cent, supported by year-end discounts and improved buying sentiment. In contrast, agriculture-linked segments witnessed moderation. Commercial tractor sales declined by 3 per cent, while agricultural tractor and agricultural trailer sales fell by 9 per cent and 14 per cent respectively, reflecting seasonal factors.
Select commercial vehicle segments, however, showed positive momentum. Construction equipment vehicle sales increased by 13 per cent and maxi cab sales rose by 11 per cent month-on-month, indicating continued demand from infrastructure activity and passenger mobility.
Electric vehicle (EV) sales recorded strong growth during March. Electric two-wheeler sales surged 72 per cent month-on-month, followed by electric passenger vehicles at 57 per cent and electric three-wheelers at 8 per cent, driven by increasing adoption in urban mobility and last-mile connectivity amid fuel price volatility. On a year-on-year basis, EV growth remained robust, with electric three-wheelers up 166 per cent, electric passenger cars rising 138 per cent, and electric two-wheelers increasing 53 per cent.
Commenting on the trends, Sudarshan Holla, Joint Managing Director & Chief Operating Officer ā Commercial Vehicles, Shriram Finance, said: āThe ongoing conflict in the Middle East is beginning to disrupt logistics activity across the country. Higher toll charges from April 1, cost pass-through by tyre manufacturers, and the likelihood of rising fuel prices are set to push truck rentals higher this month. If the conflict persists, cost pressures on operators will intensify. The key positive in March was the strong performance of car and two-wheeler sales.ā
Macro indicators also pointed to a gradual recovery in movement activity. FASTag collections increased by 3.8 per cent in volume and 3.9 per cent in value on a month-on-month basis, indicating stable highway traffic and freight flows during the period. Petrol and diesel consumption recorded strong growth in March 2026, with petrol volumes rising 13 per cent month-on-month to 3.78 MT and 8.0 per cent year-on-year. Diesel consumption also saw robust momentum, increasing 14 per cent over February to 8.73 MT, marking an 8.1 per cent rise compared to the same period last year.
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