India’s trucking industry remained under pressure in May 2026 despite strong growth in vehicle sales, rising fuel consumption and higher toll collections, highlighting a divergence between freight market conditions and broader mobility trends.
According to the latest Shriram Mobility Bulletin, truck rentals remained wobbly during the month as fleet operators grappled with higher fuel costs, disruptions in key markets and weak freight demand that limited their ability to pass on increased operating expenses.
Freight market struggles to gain momentum
Truck rental rates across major trunk routes remained largely stable on a month-on-month basis, with only select corridors witnessing gains. The Bengaluru-Mumbai-Bengaluru route recorded a 2.1% increase in rentals during May, while most other routes remained flat.
However, a longer-term view suggests freight activity has remained resilient on key trade lanes. On a year-on-year basis, rentals on the Delhi-Kolkata-Delhi and Bengaluru-Mumbai-Bengaluru corridors rose around 11%, while Delhi-Mumbai-Delhi and Kolkata-Guwahati-Kolkata recorded growth of about 8%.
Shriram Finance Joint Managing Director and Chief Operating Officer – Commercial Vehicles, Sudarshan Holla, 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.”
He added that while commercial vehicle manufacturers have welcomed the government’s vehicle replacement scheme for older BS-IV vehicles in Delhi-NCR, uncertainty remains around the future usage of BS-IV trucks that continue to meet pollution norms.
Travel season boosts fuel demand
While freight activity remained subdued, mobility demand received a seasonal boost from summer travel. Petrol consumption increased 6% month-on-month during May as vacation travellers took to the roads across the country. Diesel consumption also grew 5%, reflecting both travel activity and economic movement.
FASTag collections mirrored this trend, with transaction volumes rising 4.2% month-on-month and collection values increasing 3.7%.
EV adoption gathers pace
The bulletin highlighted continued momentum in India’s electric vehicle transition. Electric car retail sales surged 157% year-on-year in May, making it the fastest-growing EV category. Electric three-wheelers recorded 87% growth, while electric two-wheelers rose 78%, signalling accelerating adoption across both personal and commercial mobility segments.
The strong growth suggests that electrification is steadily moving beyond early adopters and becoming a broader market trend.
Traditional vehicle segments remain resilient
Conventional vehicle categories also delivered healthy growth.Retail sales of goods carriers increased 10% year-on-year, while passenger cars grew 24%. Three-wheeler goods carriers registered a robust 25% rise and two-wheeler sales expanded 7%.
Agricultural tractors posted 13% growth, supported by the onset of the kharif sowing season and improving rural demand.
The data points to an economy where mobility demand remains strong, even as freight operators continue to face pricing pressures and uncertain market conditions.