Trucking Sector Remains Under Pressure as EV Sales Growth and Travel Demand Gather Pace: Shriram Mobility Bulletin
• 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
Mumbai, 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."
ABOUT SHRIRAM FINANCE LIMITED:
Shriram Finance Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Stock Broking and Distribution businesses. Shriram Finance Limited is one of India’s largest retail asset financing Non-Banking Finance Companies (NBFC) with Assets under Management (AUM) above Rs. 3.02 trillion. Established in 1979, Shriram Finance is a holistic finance provider catering to the needs of Small Road Transport Operators and small business owners and is a leader in organised financing of pre-owned commercial vehicles and two wheelers. It has vertically integrated business model and offers financing number of products which include passenger commercial vehicles, loans to micro and small and medium enterprises (MSMEs), tractors & farm equipment, gold, personal loans and working capital loans etc. Over last 47 years, it has developed strong competencies in the areas of loan origination, valuation of pre-owned commercial vehicles and other assets, and collections. It has a pan India presence with network of 3,225 branches and an employee strength of 76,241 servicing to 97.33 lakhs of customers.
ABOUT SHRIRAM MOBILITY BULLETIN:
Shriram Finance Limited, the flagship company of the Shriram Group, publishes the monthly Shriram Mobility Bulletin. The Shriram Mobility Bulletin aims to provide stakeholders with a picture of India's statistical data about the logistics and automobile sector through its nationwide network of fleet owners & vehicle dealers and analyses it to identify trends for its stakeholders.
