ICRA, an independent and professional investment information and credit rating agency, has predicted in its bi-annual update report on the Indian road logistics industry that revenues of the sector are expected to grow by a moderate 6-9 percent YoY in FY2025.

As per the ICRA update, the industry is getting ready for the highly anticipated festive season after a brief disruption in company operations in Q1 due to the General Elections. Logistics demand is expected to rise as a result of increased factory production during restocking, rising consumer expenditure and an increase in e-commerce. This is probably going to help revenue growth, together with a good monsoon and the government's ongoing emphasis on capital building. ICRA maintains a ‘stable’ outlook for the industry, supported by a number of pro-industry government initiatives and laws as well as the assumption of consistent demand from a variety of industries, including retail, FMCG, e-commerce, chemicals, pharmaceuticals and industrial products.

ICRA foresees organised companies to sustain the price premium under an overall inflationary cost situation and support operational profitability in FY2025. It would, however, continue to be range-bound and lag below the FY2023 high levels. Despite some predicted increases in debt levels due to capex for new cars, together with the growth in lease liabilities resulting from growing branch networks and technology expenditures, the debt coverage measures are predicted to remain comfortable in FY2025. In comparison to 7.6x and 1.6x in FY2024, ICRA predicts interest coverage and total debt/OPBITDA in the range of 7.0x-8.0x and 1.4x-1.7x, respectively, in FY2025.

Srikumar Krishnamurthy, Senior Vice President & Co-Group Head – Corporate Ratings, ICRA Limited, said, “ICRA’s sample set witnessed modest revenue growth of 4.6 percent in FY2024 over FY2023. The growth was subdued on account of a relatively muted demand amid high inflation, an uneven monsoon, a relatively lacklustre festive season and the rising interest rate regime. The operating profit margin eased to 11.2 percent in FY2024 (down ~120 bps from FY2023) on account of rising operating costs (ex-fuel) amid the high inflation levels and stiff competition in the sector. In Q1 FY2025, the revenues grew by ~7 percent with operating margins of ~10-11 percent. ICRA expects the industry operating profit margins to remain in the range of 11-12 percent in FY2025, with the organised players expected to maintain the pricing premium amid an overall inflationary cost scenario”.

With August 2024 recording an all-time high volume of 105 million, the e-way monthly volumes have been rising gradually over the years and have stayed mostly consistent in the previous four months at above 100 million, indicating robust domestic commerce and transportation activity. In keeping with the e-way bills, the monthly FASTag volumes have also fluctuated, going from 295 to 350 million in FY2024 and the current fiscal year to an all-time high of 348 million in December 2023, demonstrating business continuity.

“Road logistics players also remain exposed to environmental and social risks. Tightening emission control norms necessitate investments in either alternative fuel vehicles or in the current fleet. They are also exposed to litigation/penalties arising from issues related to harmful emissions and waste, which may lead to financial implications and impact reputation. The social risk includes driver shortage, health, safety and quality of work-life balance for drivers,” added Krishnamurthy.

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Volvo Trucks India has introduced the Volvo FMX Edge, an off-road dump truck configured for heavy-duty mining operations. The vehicle was unveiled at the company’s manufacturing facility in Hoskote, Bengaluru.

The development of the truck follows the deployment of the company's FMX500 8x4 platform, which has more than 3,000 units operating across Indian mine sites. The FMX Edge has been designed to align with changing structural trends in the domestic mining market, such as the deployment of higher-capacity excavators and the demand for predictable material handling cycle times.

The FMX Edge features a 31.2 cubic metre SAE heap body capacity and a 2.8-metre-wide body configuration. This design is engineered to support material loading compatibility with high-volume industrial shovels and to manage overburden movement. The vehicle incorporates electronic stability control and vehicle tracking mechanisms intended to minimise operational downtime and maintain fuel efficiency during full-load duty cycles.

The truck rollout was followed by an application-led demonstration session at the Volvo CE Customer Centre Ground. The presentation was conducted jointly by Volvo Trucks and Volvo Construction Equipment to showcase integrated machinery solutions for bulk material handling and extraction processes.

Per-Erik Lindström, Executive Vice-President, Volvo Trucks International, said, “India is a cornerstone for Volvo Group’s future and an increasingly important market for Volvo Trucks. The launch of Volvo FMX Edge reflects our commitment to Indian customers and to solutions designed around real operating needs. Built on Volvo’s global expertise and shaped by Indian mining requirements, the Volvo FMX Edge is a strong example of our focus on customer success, sustainable progress and long-term growth.”

B Srinivas, Managing Director and CEO, VE Commercial Vehicles, said, “Volvo Trucks has earned the trust of Indian mining customers over nearly three decades by delivering solutions that perform in real operating conditions. The Volvo FMX Edge is a natural evolution of this journey. It is engineered around customer outcomes like productivity, safety, uptime, efficiency and lifecycle value. With FMX Edge, we reaffirm our commitment to supporting India’s mining sector with solutions built for confidence and long-term partnership.”

B Dinakar, Business Head of Volvo Trucks India, added, “The Volvo FMX Edge has been developed with a clear purpose – to help mining customers achieve better outcomes every day. It is not just about capacity; it is about confidence, predictability, safety and lifecycle value. Shaped by inputs from mine sites, project teams, maintenance teams, operators and drivers, the Volvo FMX Edge represents Volvo Trucks’ response to the needs of modern mining operations.”

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Ashok Leyland, one of the leading commercial vehicle manufacturers, has secured an order to supply 715 vehicles from surface transportation company VRL Logistics.

The contract involves the supply of AVTR 3120 haulage trucks, BOSS 1615 trucks and Oyster staff buses to update and expand the logistics provider's fleet.

As part of the understanding, Ashok Leyland has handed over the first batch of 300 trucks, with the remaining 415 vehicles scheduled for deployment before the end of the year.

The vehicles are equipped with tracking technologies and electronic diagnostic features intended to decrease maintenance downtime, prevent unscheduled stoppages and manage fleet operating costs. Over the long term, the vehicles will support VRL Logistics' regional cargo operations and employee transit requirements across India.

Anand Sankeshwar, Managing Director, VRL Logistics, said, “We have absolute confidence in the quality, reliability, and performance of Ashok Leyland trucks. Their strong after-sales support enables uninterrupted operations, while the rapidly expanding service network gives us a clear operational advantage. The fresh order of 715 vehicles marks a strategic deepening of our partnership to drive higher logistics efficiency. Backed by Ashok Leyland’s relentless focus on innovation and our forward-looking transport strategy, we are confident of sustained success on the road ahead.”

Madhavi Deshmukh, National Sales Head of MHCV, Ashok Leyland, added, “We are delighted to strengthen our long-standing partnership with VRL Logistics. Over the years, VRL has worked closely with us in developing new products and features tailored to the emerging needs of customers in the logistics industry. This order win is a testament to the trust and confidence VRL Logistics have in Ashok Leyland’s technology and performance and it reinforces our dedication to creating efficient and technologically advanced products that exceed customers’ expectations. Our focus continues to be on developing advanced, safe, and efficient mobility solutions that meet the evolving needs of our customers.”

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Tata Motors, one of the leading commercial vehicle manufacturers globally, has presented a portfolio of 11 products at an exhibition in South Africa.

The display includes a range of vehicle platforms and powertrain technologies, including electric vehicles and traditional internal combustion models, designed for international market applications.

Tata Motors displayed four zero-emission models developed for specific cargo and industrial duties, which include Tata Ace Pro EV, Tata Intra EV, Tata Ultra E.9 and Prima E28.K.

The display also featured next-generation intermediate trucks and mass mobility passenger buses – Intra V30 & V70, Azura 1918, Ultra Prime RE and long-distance buses, the LPO 1618 Magna (44-seater), LPO 1623 Nova (49-seater premium coach), and the LP 909 school and staff transport bus.

Tata Motors maintains a presence across 29 countries in Sub-Saharan Africa, with cumulative regional sales exceeding 340,000 commercial vehicles. The company provides a lineup of over 60 models supported by a network of more than 320 service touchpoints. To support its regional supply chain, the company utilises seven local assembly operations located in South Africa, Kenya, Nigeria, Senegal, Egypt, Morocco, and Tunisia.

Asif Shamim, Head of International Business, Tata Motors, said, “This showcase reflects our continued focus on developing relevant, application‑led mobility solutions for our international markets. The portfolio presented here demonstrates the range of platforms and technologies we are building across segments, including electric vehicles, tailored to different use cases and operating conditions. It also reflects the strength of the engineering and development capabilities behind these products, enabling us to deliver solutions that are practical, reliable and built to support customer productivity.”

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German technology company Bosch has announced a new joint venture with Brakes India (BIPL) and Wheels India (WIL), both companies of the TSF Group, to advance the development and manufacturing of air systems for commercial vehicles.

The partnership is structured as a 50:50 joint venture between Bosch and the TSF Group companies and is expected to begin operations by end-2026, pending regulatory approvals.

The joint venture will concentrate on the engineering, manufacturing and sales of electronically controlled and software-driven modules. The product portfolio will include systems for – air compression, air processing, air suspension and air parking brakes.

The entity will be headquartered in Chennai, with supply chain management integrated across Bosch, Brakes India and Wheels India.

Guruprasad Mudlapur, President, Bosch Group in India and MD, Bosch, said, “This joint venture is a decisive step to shape the future of advanced air systems. By integrating premier engineering and manufacturing prowess, we are co-creating state-of-the-art, intelligent modules that will empower our customers globally to build more advanced commercial vehicles.”

Sandeep Nelamangala, Joint MD, Bosch and President of Bosch Mobility India, said, “The commercial vehicle industry is at a pivotal moment, shifting from mechanical hardware to software-driven architecture. With air systems being an important portfolio extension, the planned joint venture enhances Bosch’s overall commercial vehicle motion management portfolio, strengthening its role in software-driven mobility.”

Sriram Viji, MD, Brakes India, said, “This milestone marks a step towards building a more integrated, system-level approach for OEMs in the commercial vehicle space. We bring our strengths as one of the leading suppliers of pneumatic braking systems. Through this joint venture, we will be able to offer air braking system parts for e-enabled future mobility to customers. We look forward to supporting the industry’s shift towards more advanced, electronically controlled and software-driven systems.”

Srivats Ram, Chairman & Managing Director of Wheels India, added, “Wheels India has been a pioneer in air suspension systems for buses in India for over three decades. Over this period, we have built strong relationships with both OEMs and end users through consistent product quality and service. We are pleased to collaborate with Bosch on this development initiative to advance electronic air suspension systems for the global customers.”

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