Rising Costs And Conflict Pressures Push Up Truck Rentals Nationwide
Truck rental rates across India’s key freight corridors are firming up as higher toll charges, rising tyre prices and the prospect of fuel cost increases begin to squeeze logistics operators, even as strong year-end vehicle sales and steady goods movement provide partial support to the transport ecosystem, according to the April mobility bulletin released by Shriram Finance.The company said that round-trip rentals for 18-tonne payload trucks rose across several trunk routes in March, with further increases expected in April after toll revisions took effect from April 1 and tyre manufacturers implemented price hikes of up to 10 per cent, citing higher crude oil-linked input costs.
“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,” said Sudarshan Holla, Joint Managing Director and COO, Commercial Vehicles, Shriram Finance.
On the Delhi–Mumbai–Delhi route, rentals rose to about Rs 170,000 from Rs 168,000, while Delhi–Kolkata–Delhi saw rentals at roughly Rs 170,000 compared with Rs 167,000 earlier. Rates on Delhi–Chennai–Delhi and Delhi–Bengaluru–Delhi routes also edged higher to around Rs 215,000 and Rs 223,000 respectively. Several southern and eastern corridors, including Mumbai–Chennai–Mumbai and Bengaluru–Mumbai–Bengaluru, reported similar upward movements.
The pressure on rentals comes despite steady freight movement supported by year-end dispatches in March. The bulletin noted that goods movement remained stable during the fiscal year-end period, although movement of LPG tankers was severely affected due to truncation of supplies.
Fuel consumption data reflected the same trend of robust activity. Petrol consumption rose to 3.78 million tonnes from 3.36 million tonnes, a 13 per cent increase, while diesel consumption increased 14 per cent to 8.73 million tonnes from 7.67 million tonnes. This suggests sustained transport and mobility demand even as cost pressures build in the system.
FASTag collections also indicated steady highway usage. Transaction volumes rose 3.8 per cent to 363.76 million, while collections increased 3.9 per cent to Rs 7,193.25 crore compared with the previous period, pointing to consistent long-haul traffic on national corridors.
E-way bill data further underlined the resilience in goods movement. Intra-state e-way bill generations rose 4 per cent to more than 9.05 crore, with the value of goods transported rising 2 per cent to over Rs 17.62 lakh crore. Inter-state e-way bills were marginally lower by 2 per cent at 4.54 crore, but the value of goods moved remained largely unchanged at nearly Rs 14.84 lakh crore.
At the same time, vehicle retail sales provided a counterbalance to the emerging cost pressures in logistics. Motor car sales rose 11 per cent to 404,020 units, while motorcycle and scooter sales jumped 14 per cent to over 1.9 million units, supported by fiscal year-end discounts. Maxi cab sales increased 11 per cent and goods carrier sales were marginally higher at 86,462 units.
Electric vehicle sales showed even sharper momentum. Electric two-wheeler sales rose 12 per cent to 177,198 units, electric three-wheelers increased 8 per cent to 36,041 units, and electric motor car sales surged 57 per cent to 21,977 units compared with the earlier period.
However, some segments linked to rural and infrastructure demand showed mixed trends. Agricultural tractor sales declined 9 per cent to 74,296 units, while commercial tractor sales fell 3 per cent. Bus sales remained largely flat, and earth moving equipment sales rose 6 per cent.
Shriram Finance said that with toll revisions, tyre cost pass-through and uncertainty over fuel prices, logistics operators are likely to pass on higher operating costs through elevated rentals in April. If geopolitical disruptions continue, the company expects further stress on margins for transporters, even as underlying mobility demand and vehicle sales remain supportive.
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