New Delhi, Apr 07: India’s 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 (Y-O-Y) basis, trucking activity showed resilience across most routes. The Delhi–Kolkata–Delhi corridor recorded a 10% increase, followed by the Bengaluru–Mumbai–Bengaluru route at 9%. The Delhi–Mumbai–Delhi, Mumbai–Chennai–Mumbai and Delhi–Chennai–Delhi routes each registered growth of 8%, underscoring sustained inter-city freight movement.
Month-on-month (M-O-M), limited increases were observed across several corridors, indicating stable demand conditions. Rentals on the Delhi–Kolkata–Delhi route rose by 1.8%, Bengaluru–Mumbai–Bengaluru by 1.5%, while the Delhi–Mumbai–Delhi and Mumbai–Chennai–Mumbai routes increased by 1.2% 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% and two-wheeler sales increasing 14%, supported by year-end discounts and improved buying sentiment. In contrast, agriculture-linked segments witnessed moderation. Commercial tractor sales declined by 3%, while agricultural tractor and agricultural trailer sales fell by 9% and 14% respectively, reflecting seasonal factors.
Select commercial vehicle segments, however, showed positive momentum. Construction equipment vehicle sales increased by 13% and maxi cab sales rose by 11% 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% month-on-month, followed by electric passenger vehicles at 57% and electric three-wheelers at 8%, 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%, electric passenger cars rising 138%, and electric two-wheelers increasing 53%.
Commenting on the trends, Sudarshan Holla, Joint Managing Director & Chief Operating Officer – Commercial Vehicles, Shriram Finance, said: “The 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.”
Macro indicators also pointed to a gradual recovery in movement activity. FASTag collections increased by 3.8% in volume and 3.9% 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% month-on-month to 3.78 MT and 8.0% year-on-year. Diesel consumption also saw robust momentum, increasing 14% over February to 8.73 MT, marking an 8.1% rise compared to the same period last year.
