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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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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The Automotive Research Association of India (ARAI), a leading automotive R&D organisation set up by the automotive industry with the Government of India, has launched a series of administrative and technical initiatives to support bus body builders navigating the national certification framework.

The updates are structured to lower compliance expenses, minimise paperwork and reduce the processing timeline for vehicle type approval.

Under the updated framework, ARAI has established a Support Cell to assist manufacturers with documentation and pre-application design verification. The association has also introduced a website containing regulatory guidelines and simplified data templates, such as standardised variant lists and checklists, to address Worst-Case Selection Criteria.

Applicants must follow a three-level compliance architecture that incorporates physical safety verifications and mandatory video inspections.

The system enforces the Bus Body Code, implemented under the Motor Vehicles Act, 1988, and the Central Motor Vehicles Rules (CMVR), to standardise vehicle construction and safety metrics across the manufacturing sector. The rules require compliance with distinct Automotive Industry Standards (AIS):

• AIS 052 (Rev.1): Governs structural requirements and design safety for all buses with a seating capacity of 13 passengers plus the driver (13+D) and above, as mandated by GSR 159 (E).
• AIS 153: Sets safety criteria, fire protection rules, emergency exit locations, and passenger comfort standards for buses exceeding a 22-passenger capacity, excluding the driver (22+D).
• Specialised Standards: Includes AIS-119 (Rev.1) for sleeper coaches and AIS-063 for school buses.

The operational updates follow a regulatory directive issued by the Ministry of Road Transport & Highways (MoRTH). Regional Transport Offices (RTOs) are restricted from registering new inter-city and sleeper buses until completed safety checklists are uploaded directly to the government’s VAHAN portal by manufacturers, body builders and inspecting officers.

Dr Reji Mathai, Director, ARAI, said, “ARAI has always been committed to empowering ecosystem stakeholders be it legacy corporations, start-ups or MSMEs. We want to assist the bus body builders in their certification process at all stages including development and testing before they apply for certification. This will ensure that safety remains our utmost priority and consequently a reliable transport system for the public is built in our country. To encourage widespread adoption of these services, we have also introduced substantially optimised pricing structures. We aim to make it easier, faster and cost-effective for all stakeholders to uphold the best standards of passenger safety. The type approval cost had been drastically reduced to INR 1.4 million + GST, which is about 50 percent reduction from a normal case. Additionally, time for type approval process can be fast forwarded to anywhere between 60 days – 90 days, depending upon the readiness of the applicant.”

The revision limits the baseline type approval fee to INR 1.4 million plus GST for applications containing up to 100 vehicle variants, while the processing window has been adjusted to run between 60 and 90 days depending on initial applicant documentation.

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German automotive major MAN Truck & Bus recently unveiled the MAN eTGM at the Transpotec Logitec trade fair in Milan, expanding its battery-electric vehicle line-up into the mid-range distribution segment.

The introduction of the 16-tonne truck establishes a uniform electric commercial vehicle portfolio ranging from 12 to 50 tonnes, bridging the gap between the lightweight eTGL and the heavy-duty eTGX and eTGS series.

The e-truck features a permissible gross weight of 16.01 tonnes (with a 16.5-tonne option) and a chassis payload capacity of approximately 10.6 tonnes. It is designed for urban and regional distribution, municipal use and construction transport, the e-truck also supports trailer operations up to a gross combination weight of 33 tonnes. Operating in the over 16-tonne category provides transport companies with road toll reductions in several European markets while assisting fleets in meeting EU CO2 emissions targets.

The eTGM utilises a modular battery-electric system derived from MAN’s heavy-duty truck platforms. It is powered by the MAN eCD210 electric drive, which produces 210 kW (285 hp) and a maximum torque of 800 Nm, paired with a MAN TipMatic 2 transmission. Operators can configure the vehicle with two to four battery packs, providing a total usable capacity of up to 320 kWh and a maximum operating range of 480 kilometres.

Friedrich Baumann, Member of the Executive Board for Sales & Customer Solutions at MAN Truck & Bus, said, "With the MAN eTGM, we are putting the ideal electric solution for inner-city and regional distribution transport on the road right now. It is the logical conclusion to our eTruck portfolio and makes MAN a true full-range supplier of battery-electric commercial vehicles."

For body assembly, the chassis includes optimised wheelbases, standardised interfaces and a mechanical power take-off shaft (mPTO) to allow the integration of conventional body designs without extensive modification. Alongside the eTGM premiere, MAN showcased its broader decarbonisation ecosystem at the trade fair, including the heavy-duty eTGX equipped with Megawatt Charging System (MCS) technology, charging consultancy services and digital fleet connectivity tools.

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