India's logistics and mobility sector remained broadly stable in March 2026, with truck rentals on major trunk routes holding steady and recording marginal month-on-month gains. The firmness was underpinned by year-end industrial dispatches and rising operating costs, even as overall freight volumes stayed consistent.
On a year-on-year basis, truck activity showed resilience across most corridors. The Delhi–Kolkata–Delhi route recorded the strongest growth at 10%, followed by Bengaluru–Mumbai–Bengaluru at 9%. The Delhi–Mumbai–Delhi, Mumbai–Chennai–Mumbai, and Delhi–Chennai–Delhi corridors each posted 8% growth, reflecting sustained inter-city freight demand.
Month-on-month movement was more moderate. Rentals on the Delhi–Kolkata–Delhi route rose 1.8%, Bengaluru–Mumbai–Bengaluru edged up 1.5%, and the Delhi–Mumbai–Delhi and Mumbai–Chennai–Mumbai routes each gained 1.2%. The measured uptick was attributed to stable fleet availability and a wind-down of year-end consignment activity rather than a structural demand shift.
One notable disruption during the month was a sharp decline in LPG tanker movement, caused by a curtailment of supplies. The segment's performance diverged significantly from broader freight trends, highlighting supply-side vulnerability in energy logistics.
Cost Pressures to Weigh on April Outlook
The near-term outlook for freight costs is tightening. Tyre manufacturers have implemented price increases of up to 10% effective 1 April 2026, driven by elevated crude oil prices and higher raw material costs, particularly carbon black. Simultaneously, the annual revision of toll charges came into effect on the same date, adding to the cost base for operators.
The ongoing conflict in the Middle East is also creating indirect pressure on Indian logistics, with potential knock-on effects through fuel price volatility and supply chain disruptions. An early onset of summer is an additional variable that could moderate freight activity in April and May.
"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," said Sudarshan Holla, Joint Managing Director & Chief Operating Officer – Commercial Vehicles, Shriram Finance.
Vehicle Sales: EVs Surge, Agriculture Segments Soften
Vehicle sales in March presented a mixed picture. Passenger vehicles performed well month-on-month, with motor car sales rising 11% and two-wheeler sales increasing 14%, aided by year-end discounts and improved consumer sentiment. Construction equipment vehicle sales climbed 13% and maxi cab sales grew 11%, reflecting ongoing infrastructure momentum.
In contrast, agriculture-related segments weakened. Commercial tractor sales fell 3%, while agricultural tractors and trailers declined 9% and 14% respectively, consistent with seasonal demand patterns.
Electric vehicles were the standout performer. Electric two-wheeler sales surged 72% month-on-month, electric passenger vehicles rose 57%, and electric three-wheelers gained 8%. Year-on-year growth was equally robust: electric three-wheelers advanced 166%, electric passenger cars 138%, and electric two-wheelers 53%, signalling accelerating adoption driven by fuel price uncertainty and expanding urban mobility needs.
Macro Indicators Signal Stable Underlying Activity
Broader macro indicators supported a picture of stable, if unspectacular, economic activity. FASTag collections grew 3.8% in volume and 3.9% in value month-on-month, pointing to consistent highway usage.
Fuel consumption data was more emphatic. Petrol volumes rose 13% month-on-month to 3.78 million tonnes in March 2026, up 8% year-on-year. Diesel consumption increased 14% over February to 8.73 million tonnes, a gain of 8.1% compared to the same month last year, suggesting a rebound in both personal mobility and commercial freight.