Fleets are increasingly moving towards higher-tonnage multi-axle trucks and tractor-trailers, allowing more freight to be carried per vehicle and improving operating economics
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Firm truck rentals, rising goods carrier registrations and accelerating heavy truck sales, are converging with replacement demand from an ageing fleet as India enters its peak festival freight quarter, giving the commercial vehicle market a near-term and structural tailwind.Rentals for 18-tonne trucks remained largely stable month-on-month across major routes in August, but were substantially higher from a year earlier, according to the latest Shriram Mobility Bulletin. Delhi-Kolkata led with a 15 per cent increase at ₹1.82 lakh, and Bengaluru-Mumbai and Kolkata-Guwahati rose 11 per cent each at ₹1.50 lakh and ₹1.63 lakh, respectively, while Delhi-Mumbai stood at ₹1.75 lakh, up 8 per cent.“The onset of the festival season, led by Onam in Kerala, has boosted sentiment across the transportation sector,” said Sudarshan Holla, Joint MD and COO (Commercial Vehicles) at Shriram Finance. “Freight activity remained robust, with truck rentals holding firm on major trunk routes.”Festival freightThe activity is beginning to show up in vehicle demand. National goods carrier registrations increased 18 per cent year-on-year to 74,401 units in August, while cargo three wheelers jumped 43 per cent to 14,614 units. Ashok Leyland’s domestic medium and heavy commercial vehicle truck sales rose about 60 per cent year-on-year during the month.Replacement demand is also returning as an important driver of vehicle purchases, according to Hemal Thakkar, Senior Practice Leader and Senior Director at Crisil Intelligence, who expects a revival in the replacement cycle to support growth in FY27.Festival freight, therefore, is only one part of the story. An ageing commercial vehicle population is creating a replacement cycle as fleet operators weigh the higher fuel and maintenance costs of older trucks against newer vehicles.The replacement is also changing what operators buy. Fleets are increasingly moving towards higher-tonnage multi-axle trucks and tractor-trailers, allowing more freight to be carried per vehicle and improving operating economics.MORE TONNES PER TRUCKThat means the current cycle isn’t simply about putting more trucks on Indian roads. An older vehicle replaced by a newer, higher-capacity truck can migrate into the used-vehicle market rather than disappear, while the new truck adds more efficient freight-carrying capacity at the top of the fleet.This helps explain why heavy truck demand can remain resilient even as headline industry growth normalises after a strong FY26. Ashok Leyland has indicated M&HCV industry growth of about 5-7 per cent in FY27, supported by replacement and infrastructure activity.Freight indicators provide a supportive backdrop. FASTag collections reached ₹7,185 crore across 351 million transactions in August, while diesel consumption rose 6.4% year-on-year to 7 million tonnes.FLEET ECONOMICSThe replacement decision ultimately rests on fleet economics: utilisation, rentals, fuel efficiency, maintenance costs, financing and the resale value of the old truck. Firm freight rates matter because they improve the operating backdrop in which fleet owners make those investment decisions, without necessarily establishing that rentals themselves are driving replacement.As Dussehra and Diwali dispatches gather pace, India’s heavy-truck market is entering the peak quarter with two cycles converging, more freight to move immediately, and an ageing fleet increasingly needing replacement.For truck makers, that combination could mean not merely more vehicles sold, but a fleet progressively shifting towards newer trucks capable of carrying more tonnes per trip.Published on September 8, 2026
