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Truck rentals remained wobbly during May
Increase in fuel prices in May could not be passed on fully to trade due to demand slackness
However, select trunk routes witnessed sharp increase in truck rentals
Vacation travellers pushed up fuel sales
FASTag collections also witnessed an increase
Hyderabad, 04 June 2026: India’s mobility and logistics sector witnessed a turbulent yet structurally resilient May 2026. Truck rentals remained wobbly during the month, weighed down by multiple price increases coupled with demand slackness, which prevented fleet operators from passing on the full impact of rising fuel prices.
Truck rental rates across major trunk routes remained broadly stable to marginally positive on a month-on-month basis, with the Bengaluru–Mumbai–Bengaluru route recording a 2.1% MoM uptick. Most other routes held steady or unchanged. On a year-on-year basis, long-haul corridors showed sustained strength — Delhi–Kolkata–Delhi and Bengaluru–Mumbai–Bengaluru surged by approximately 11% YoY each, while Delhi–Mumbai–Delhi and Kolkata–Guwahati–Kolkata rose by around 8% YoY, reflecting durable freight demand across key trade lanes.
Automotive fuel consumption showed seasonal strength in May. Petrol consumption rose by 6% MoM, driven largely by vacation travellers taking to the roads during the peak summer season, diesel consumption grew by 5% MoM.
FASTag collections witnessed an increase, with transaction volumes rising by 4.2% MoM, and total collection value climbing by 3.7% MoM.
The electric vehicle sales continued at an accelerating pace. Electric cars led the charge with a strong 157% year-on-year growth in retail sales, during May 2026. Electric three-wheelers climbed 87% YoY, while electric two-wheelers surged 78% YoY, signalling a deep-rooted shift in consumer and commercial preferences across segments.
The traditional automotive sector maintained a broadly positive trajectory on a YoY basis. Retail sales of goods carriers rose 10% YoY, while passenger motor cars posted a 24% YoY increase. Three-wheeler goods carriers recorded a robust 25% YoY gain, and the two-wheeler market grew 7% YoY. Agricultural tractors posted healthy growth of 13% YoY, supported by the onset of the kharif sowing season.
Sudarshan Holla, Joint Managing Director and Chief Operating Officer — Commercial Vehicles, Shriram Finance, said: “May was a turbulent month for the trucking sector. Chakka Jam disruptions in NCR and repeated fuel price hikes created significant strain, but weak demand limited the ability to pass on costs fully. While OEMs welcome the government’s support for replacing older BS-IV vehicles with cleaner alternatives in Delhi-NCR, fleet operators remain uncertain about the continued usage of BS-IV trucks that still meet pollution norms post November 1.”
