Indian road logistics industry is anticipated to witness a steady but restrained growth trajectory in the fiscal year 2025, as projected by the credit rating agency, ICRA. The forecast suggests a modest expansion of revenues within the range of 3-6 percent, primarily attributed to several factors influencing the sector's dynamics.

According to ICRA's analysis, the industry's growth pace is expected to be constrained by several factors. These include the limited capacity of logistics players to adjust freight rates, anticipated softening of government expenditure during the election period due to the Model Code of Conduct obligations and a moderation in consumer demand sentiments owing to elevated levels of inflation and interest rates.

Despite the prevailing challenges, ICRA maintains a stable outlook for the sector. This optimistic stance is underpinned by sustained momentum in economic activities, the increasing traction of organised trade and ongoing support from diverse segments such as e-commerce, FMCG, retail, pharmaceuticals and industrial goods.

An indication of the resilience within the sector is evidenced by the performance metrics of e-way bills and FASTag volumes. E-way monthly volumes have remained robust, hovering above 85 million for the past four months. Although slightly below the all-time high of 100 million recorded in October 2023, this sustained level signifies resilient domestic trade and transportation activities.

Similarly, the monthly FASTag volumes have mirrored the trends observed in e-way bills. Ranging from 295 to 350 million in the current fiscal year, with a peak of 348 million in December 2023, the figures reflect the continuity of business operations despite market fluctuations and external uncertainties.

Commenting on the same, Vice President and Sector Head – Corporate Ratings, ICRA Limited, Suprio Banerjee, said: “ICRA’s sample set witnessed a modest revenue growth of 2.3% in 9M FY2024 on a YoY basis amidst tapering demand due to high inflation, an uneven monsoon, a high interest rate regime and relatively muted festive season. Thus, on an elevated base of FY2023, ICRA estimates a low single digit growth of 2-5 percent in FY2024.  The growth for road logistics sector in FY2025 is expected to be in the range of 3-6 percent, owing to the impact on demand from high inflation, high interest rate regime and soft (though improving) consumer sentiment.”

“The industry operating profit margin contracted to 11.2 percent in 9M FY2024 on account of increase in operating costs (ex-fuel) due to the high inflationary regime and pressure on realisations, given the sticky retail diesel rates, limiting any formula-driven price rise. ICRA expects the margins to remain in the range of 10.5-12.5 percent in FY2024 and FY2025 over 12.4 percent in FY2023 amidst inflationary headwinds and despite benefits of efficiency gains due to increasing digitalisation and value-added service offerings of industry players. Key debt metrics like OPBITDA is expected to have moderated marginally to 1.5-1.7 times in FY2024 from 1.4 times in FY2023 with rising operating costs (ex-fuel), given the persistently high inflation levels and increase in debt due to debt-funded capital expenditure for new vehicles and anticipated rise in lease liabilities due to expanding branch network and technology investments,” he added. 

He also informed, “Additionally, road logistics players also remain exposed to environmental and social risks. Tightening emission control norms necessitate alternative fuel vehicle investments or investments in the current fleet. They are also exposed to litigation or 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.”

While the Indian road logistics industry faces challenges such as constrained pricing abilities and economic uncertainties, it continues to exhibit resilience and stability. The sector's ability to adapt to changing circumstances and sustain operational momentum underscores its significance within the broader economic landscape. 

As the fiscal year progresses, stakeholders will closely monitor developments, seeking opportunities to navigate challenges and capitalise on emerging trends.

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Pune-headquartered alternative commercial vehicle maker Blue Energy Motors has signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) under the PARIVARTAN Scheme. The partnership aims to facilitate the replacement of commercial vehicles with electric trucks within the Delhi-National Capital Region.

The initiative supports the transition to freight mobility options by incentivising the replacement of transport units. Blue Energy Motors deploys electric and liquefied natural gas truck platforms across freight routes, accumulating operational distance and reducing emissions.

Anirudh Bhuwalka, Founder & Managing Director, Blue Energy Motors, said, "The PARIVARTAN Scheme is an important step towards accelerating the transition to cleaner freight mobility in India. Our participation reflects Blue Energy Motors’ commitment to supporting the Government’s vision for sustainable transportation and enabling wider adoption of electric heavy-duty trucks. We believe that the right policy support, coupled with advanced technology and a strong domestic manufacturing ecosystem, can play a pivotal role in accelerating India’s transition towards zero-emission freight transportation."

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SWITCH Mobility Ltd, a global leader in electric buses and light commercial vehicles and part of the Hinduja Group, has joined forces with intercity operator PURPLE BUS to roll out the region's first electric bus service linking Nagpur and Chandrapur, widening the operator's Vidarbha footprint. Union Minister of Road Transport and Highways Nitin Gadkari oversaw the ceremonial dispatch of the inaugural six units, drawn from a 50-bus EiV12m intercity electric order placed by Purple Bus for deployments across Vidarbha.

Organisers chose Dussehra, a festival traditionally viewed as favourable for fresh ventures, as the launch date, a nod to the manufacturer's continuing push for safe, dependable and sustainable public transport in the region. Travellers between the two cities stand to gain better connectivity along with a safe, comfortable and eco-friendly way to travel.

The Nagpur–Chandrapur service is the third intercity project this year between SWITCH Mobility and Prasanna Purple Mobility Solutions, building on electric coach launches along the Mumbai–Pune and Dombivli–Pune corridors in April 2026 and October 2026, respectively. The recurring tie-up points to rising operator confidence in electric buses for high-frequency intercity routes and to SWITCH Mobility's growing part in India's shift towards sustainable intercity travel.

The new route strengthens the partnership with Prasanna Purple Mobility Solutions and furthers the company's wider aim of making zero-emission public transport accessible in Indian cities and towns. Linking key Vidarbha centres, the service is expected to ease daily commutes, boost local economic activity and speed the move towards cleaner intercity mobility. The EiV12m coach, engineered for long-distance journeys, pairs 45 pushback seats and a 350 km per-charge range with fast-charging capability, advanced safety systems, a quiet ride and SWITCH iON connected technology for real-time monitoring.

Ganesh Mani, Chief Executive Officer, SWITCH Mobility, said, “Nagpur and Chandrapur share a close economic and cultural relationship, and strengthening this corridor with our partner Prasanna Purple Mobility Solutions is an important step in our mission to build future-ready public transport across India. Following our deployment on the Mumbai–Pune route earlier this year, we are glad to extend this partnership to Vidarbha and to contribute to the region’s growth by supporting the everyday movement of the people who depend on it. This launch reaffirms our commitment to sustainable, people-first mobility solutions in Maharashtra and beyond.”

Saurabh Patwadhan, Director, PURPLE BUS, said, “At PURPLE BUS, our goal is to make electric the default way people travel between cities, not the exception. We are building that future route by route, from Mumbai–Pune, one of India’s busiest corridors, to Nagpur–Chandrapur, where we now bring Vidarbha its first electric bus service. Our fleet has already covered more than one million kilometres (1,000,000 km) in electric intercity operations, and the data shows what many operators doubted: electric coaches deliver a lower total cost of ownership and a lower cost per passenger-kilometre than diesel. Our partnership with SWITCH Mobility has been central to proving that, and it gives us the confidence to scale sustainable intercity mobility across Maharashtra.”

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European commercial vehicle major Scania has inaugurated its research and development proving ground in Södertälje, representing an investment of SEK 975 million. The 85-hectare site includes 13 kilometres of paved road and 4 kilometres of gravel road to support testing across electrification, autonomous driving, safety systems and vehicle dynamics.

The facility incorporates three irrigated braking tracks constructed from asphalt, concrete and basalt tiles, enabling testing across varied friction surfaces and cornering conditions. The site also features specialised environments for evaluating driver assistance technology, including automatic emergency braking, lane support and blind-spot warning systems, alongside scenarios for autonomous vehicle development. The construction project integrated environmental measures, including ECO asphalt and renewable HVO100 fuel for logistics, avoiding approximately 30,900 tonnes of carbon dioxide equivalent emissions.

Christian Levin, President and CEO, TRATON GROUP and Scania, said, "The transformation of transport requires us to continuously strengthen the way we develop and validate new technologies. This investment is about building the capabilities we need for the future while ensuring that the solutions we bring to our customers have the safety, quality and performance they expect."

Sara Forsberg, CTO and Head of Brand Identity Development at Scania, said, "New technology only creates value when it performs in the real world. The R&D proving ground gives our engineers greater possibilities to test, learn and validate solutions under demanding conditions. It strengthens our ability to turn innovation into solutions that deliver real value for our customers."

Niklas Klingenberg, Head of Group R&D, TRATON GROUP, said, "Advanced testing and validation capabilities become increasingly necessary as we develop the next generation of transport solutions. The R&D Proving Ground is an important addition to our landscape and strengthens our ability to turn new technologies into proven solutions."

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Eicher Trucks & Buses, a division of VE Commercial Vehicles, has inaugurated a 3S dealership facility in Noida for its Eicher Pro X small truck range. Operated by Punjab Mobility, the 7,000-square-foot facility is located on NH-34 at Dadri in Gautam Buddh Nagar, providing integrated sales, service and spare parts support.

The showroom will sell the 3-tonne and 3.5-tonne Gross Vehicle Weight range of small commercial vehicles across electric, diesel and compressed natural gas powertrain options.

The location provides access to industrial and logistics hubs across Noida, Greater Noida and the Dadri region, including the Multi-Modal Logistics Hub and the Dadri-Noida-Ghaziabad Industrial Region, with transport connectivity via the Eastern Peripheral Expressway, the Delhi-Meerut Expressway and the Yamuna Expressway.

Abhishek Chaudhary, Senior Vice-President of SCV Sales & Marketing, VE Commercial Vehicles, said, "The Eicher Pro X range is designed for the evolving needs of last-mile logistics, with a strong focus on efficiency, connectivity, driver comfort and uptime. With three energy-efficient powertrains, 100% connected technology and multiple configuration options, it is engineered for applications including e-commerce, parcel courier, FMCG and industrial goods movement. Punjab Mobility Private Limited’s presence strengthens our presence in Noida and brings the Pro X range and enhanced ownership support closer to customers across the Delhi-NCR region. Born electric-first, the Eicher Pro X offers customers in the NCR the opportunity to switch to electric trucks that are approved under the PARIVARTAN scheme."

The dealership infrastructure features digital vehicle configurators, dedicated workshop bays, electric vehicle charging infrastructure and EV-trained service personnel. To support vehicle uptime across the National Capital Region, the facility operates mobile service vans and breakdown assistance units alongside power backup systems.

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