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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TVS Motor Company has announced the launch of ‘TVS KING Ka Vaada 3.0’, an expanded value-added scheme for its three-wheeler portfolio. The initiative extends beyond vehicle maintenance to include financial security and protection benefits for customers and their families.

The updated programme introduces personal and family protection measures alongside traditional vehicle support.

Personal accident coverage for up to INR 1 million in the event of death or permanent disability. Education support of INR 100,000 per child for up to two children in the event of death or permanent disability. Hospitalisation income of INR 4,000 per day for up to 30 days during medical confinement. Three free services and roadside assistance across the range.

The scheme applies to both Internal Combustion Engine (ICE) and Electric Vehicle (EV) models in the passenger and cargo segments.

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In what is seen as a global energy crisis on the back of the ongoing war between Iran and USA-Israel, is now also expected to have an impact on the Indian transport sector.

Bal Malkit Singh, Advisor & Former President – All India Motor Transport Congress (AIMTC), has called for proactive government measures to protect the economy and the road transport sector from the effects of escalating tensions in the Middle East. The warning follows a surge in crude oil prices to nearly USD 95 per barrel and the effective closure of the Strait of Hormuz as of late February 2026.

The road transport sector is experiencing a slowdown due to reduced industrial output. Industry observations indicate a decline of up to 50 percent in certain segments, with projections suggesting this could reach 70–80 percent if current disruptions persist.

Furthermore, it can also lead to rising prices for fuel, lubricants, tyres and AdBlue (urea). He has expressed concerns over driver migration due to fewer work opportunities and the closure or price increases at highway eateries.

The ‘energy war’ scenario is impacting the wider MSME ecosystem, leading to higher production costs and operational challenges for small businesses and trading establishments.

Singh has urged the government to implement policy support to maintain economic stability, emphasising that the transport sector serves as the lifeline for domestic trade.

Proposed interventions include:

• Deferment of Equated Monthly Instalments (EMIs).
• Introduction of soft loan schemes.
• Targeted tax relaxations for transporters and MSMEs.

Bal Malkit Singh, said, “The current geo-political developments are an early warning signal for our economy. The road transport sector, being the lifeline of trade and commerce, is already experiencing stress due to reduced movement and rising operational costs. If timely interventions are not considered, the situation could escalate significantly in the coming weeks. It is essential to support MSMEs and transporters through relief measures such as deferment of EMIs, soft loan schemes, and tax relaxations to ensure business continuity and economic stability.”

Image credit: Samuel Wolfl/Pexels

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Euro NCAP has announced that Allianz has joined the Safer Trucks programme as an Associate Member, which combines vehicle safety assessment with commercial risk data.

The Safer Trucks programme, launched in 2024, provides safety ratings for heavy goods vehicles (HGVs). In its first two years, the initiative has assessed 30 truck models and identified safety gaps in the freight sector. Data indicates that in collisions involving HGVs, 90 percent of fatalities are occupants of other vehicles or pedestrians and cyclists. Freight transport accounts for the movement of 95 percent of goods across the EU.

Allianz operates in 70 countries and will contribute expertise on risk trends and claims data. The Allianz Center for Technology will serve as the centre for automotive technology and traffic safety to promote vehicle safety.

The involvement of insurers in safety assessments aims to inform manufacturers and fleet operators about areas for improvement. According to the programme, avoiding accidents reduces repair costs and downtime, which can lead to lower insurance premiums for fleets.

Matthew Avery, Director of Strategic Development, Euro NCAP, said, “We are delighted to welcome Allianz to the Safer Trucks programme. Their expertise in risk and casualty analysis adds a valuable new dimension to our multi-disciplinary approach. Safer Trucks is designed not only to benchmark safety performance but also to catalyse improvements in truck design and technology. By integrating risk insight from Allianz with our independent testing data, we aim to accelerate safety innovation across the commercial vehicle sector.”

Matthias Trustedt, Head of Global P&C, Allianz SE, said, “Joining Euro NCAP’s Safer Trucks initiative aligns with our commitment to reducing road risk through evidence-based insights. We believe that independent safety ratings, tied to real-world risk data, can influence both purchasing decisions and the development of safer vehicle technologies. Allianz is proud to support this important work, to help fleet operators make informed choices that protect drivers and other road users, and to offer them tailored and risk-based insurance solutions.”

Christian Sahr, MD, Allianz Center for Technology, said, “Our accident research shows that modern safety systems in trucks can significantly reduce the number of serious accidents. In addition to protecting life, avoiding accidents brings economic benefits for fleet operators because a fleet with lower repair and downtime costs is more efficient, offers better working conditions for drivers, and has significantly lower insurance premiums. Through our cooperation with Euro NCAP, we see excellent opportunities to use our combined expertise to improve the market penetration of safety systems that are already available and that contribute to accident prevention.”

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Piaggio Vehicles (PVPL), a subsidiary of the Piaggio Group, has secured an order for more than 100 units of its Ape Xtra Bada 700 cargo three-wheeler from HeidelbergCement India.

The three-wheelers will be deployed across 53 districts in Uttar Pradesh, Madhya Pradesh and Bihar. This order marks the entry of the new diesel cargo model into industrial applications.

The Ape Xtra Bada 700 features a 700 DI diesel engine, a 7-foot cargo deck and a payload capacity of 750 kg, which is the highest in the three-wheeler cargo segment. The vehicle is equipped with 12-inch radial tyres, a digital instrument cluster with a 3.5-inch LCD and an optional rear sensor for reversing.

The vehicle architecture includes a chassis and suspension geometry designed for stability and load distribution. The cabin is engineered for long-distance operation and the engine is tuned for torque and pickup. Piaggio offers a five-year warranty on the model. The company positions this three-wheeler as a replacement for entry-level four-wheeler small commercial vehicles (SCVs) due to its operating economics.

Amit Sagar, Executive Vice President, CV Domestic Business & Retail Finance, Piaggio Vehicles, said, “This flagship order from Heidelberg Cement India Limited is a strong validation of the Ape Xtra Bada 700’s disruptive capabilities. At Piaggio India, we have always believed in pushing the boundaries of innovation in the last-mile mobility segment. The Ape Xtra Bada 700 sets new industry benchmarks in engine capacity, deck size and payload, and is designed to empower customers with more productivity and superior earnings. Breaking into applications traditionally dominated by 4-wheeler SCV marks an important milestone in our journey of offering better TCO and profitability to our customers.”

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