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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Eicher Trucks and Buses, a business unit of VE Commercial Vehicles (VECV), has partnered Pickkup, a leading tech-enabled logistics provider, for the phased deployment of 100 Eicher Pro X EV small trucks across India.

The EVs are deployed across the operations of Pickkup serving retail distributors, e-commerce, FMCG and perishable deliveries. This partnership marks a significant step toward advancing clean logistics and sustainable urban mobility, enabling faster adoption of zero-emission solutions in high-demand applications.

Pickkup, operates 100 percent electric four-wheeler fleet under an asset-light model. The Eicher Pro X EV, designed and manufactured in India at VECV’s Industry 4.0-enabled Bhopal plant, combines best-in-class range, larger cargo capacity, and CCS2 fast-charging compatibility. It is supported by Eicher’s Uptime Centre and the My Eicher connected platform to provide predictive diagnostics, real-time support and maximum vehicle availability.

Abhishek Chaudhary, SVP, Small Commercial Vehicles, Eicher Trucks and Buses, said, “This partnership with Pickkup is a significant step in our journey to support customers with future-ready mobility solutions. The phased deployment of Eicher small electric trucks demonstrates not only the confidence in Eicher’s pedigree but also the growing readiness of logistics operators to integrate EVs into their fleet. The Eicher Pro X has been co-created with customers to address real operational needs of delivering environmental and economic sustainability—making them an ideal solution for modern logistics.”

Ankush Sharma, Founder & CEO, Pickkup, added, “Pickkup’s vision is to decarbonize logistics while ensuring operational efficiency at scale. The Eicher Pro X EV, with its offering and connected ecosystem, fits perfectly into our growth strategy. With Eicher’s partnership, we can expand faster, serve more customers. With this momentum, Pickkup is taking a leadership role in shaping future-ready, and sustainable logistics solutions for India.”

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Montra Electric M&HCV, part of the Murugappa Group, has announced a major milestone for its Rhino 5538EV heavy-duty electric trucks, which it claims has collectively travelled over 12 million kilometres on Indian roads in just two years. The fleet of 350 trucks has been primarily deployed in critical sectors like steel, cement and port logistics.

This achievement highlights the growing viability of electric heavy-duty transport in India. According to Montra Electric, the fleet has helped companies reduce an estimated 3.79 million tons of CO2 emissions since its launch.

Jalaj Gupta, MD, Montra Electric, said, "This milestone is a powerful validation of India's transition to clean mobility. With the Rhino 5538EV, we are proving that electric heavy transport isn’t a distant future, it’s already a reality on Indian roads."

The Rhino 5538EV trucks have maintained an uptime of over 98 percent, demonstrating their reliability in demanding industrial environments. The company shared that customers have reportedly placed repeat orders for the trucks, citing significant savings on fuel and maintenance costs. Montra Electric is providing 24x7 on-site service on its fleets to ensure maximum productivity.

The Rhino EV is powered by a 282 kWh LFP (Lithium Iron Phosphate) battery and a PMSM (Permanent Magnet Synchronous Motor), delivering 380 horsepower and 2000 Nm of torque. The trucks support fast charging, which can bring the battery from 20 percent to 100 percent in just one hour. The company plans to expand its Rhino lineup to include a 4x2 tractor-trailer and a 6x4 tipper configuration.

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Pune-headquartered alternative fuel commercial vehicle manufacturer Blue Energy Motors has appointed Anand Mimani as CEO of its EV & New Energy Business.

Mimani will be responsible for the company’s focused vertical on integrated clean freight ecosystem. The automaker is working on accelerating expansion across electric heavy-duty vehicles, energy-as-a-service platforms and green corridor infrastructure.

He comes with over 26-years of experience in mobility, energy and clean tech. Till recently, he was the CEO of GreenLine Mobility Solutions, where he led the deployment of India’s largest fleet of LNG-pwoered trucks.

In his new role, Mimani will lead the EV & New Energy division’s business strategy, operations, product rollout and partner ecosystem — with a sharp focus on scaling zero-emission trucking solutions. He will report directly to Anirudh Bhuwalka, Founder & Managing Director, Blue Energy Motors, who continues to steer the company’s overall mission, strategic direction and group-level leadership.

Bhuwalka, said, “As we scale rapidly, it’s critical to bring in focused leadership for each of our high-growth verticals. Anand’s appointment as CEO of our EV and New Energy Business significantly strengthens our execution capacity in the electric mobility and infrastructure space, while advancing our broader vision for a zero-emission freight future.”

The Pune-based automaker is working on clean freight platform combining battery-electric, LNG and energy-as-a-service solutions under one integrated ecosystem. With EV and energy infrastructure representing a critical pillar of its scale-up, it is now strengthening leadership in this vertical to:

- Ramp up deployment of electric truck platforms

- Scale battery swap and charging hubs across key freight corridors

- Deepen partnerships with energy providers, logistics firms, and OEMs

Anand Mimani, said, “I’m excited to join Blue Energy at such a pivotal time. The opportunity to lead the EV & New Energy vertical – while working closely with Anirudh and the leadership team – is incredibly energising. Together, we aim to build a freight ecosystem that is clean, efficient, and future-proof.”

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David Hanna has been named Director of Volkswagen Commercial Vehicles UK, effective 1 October 2025. He brings extensive two-decade automotive industry experience from both manufacturer and retail perspectives.

Hanna originally joined Volkswagen Group UK in 2014 and has since cultivated deep brand knowledge through significant roles within the Audi, Volkswagen Passenger Cars and Volkswagen Commercial Vehicles divisions, including Head of Network Sales at Volkswagen Passenger Cars UK. This strategic appointment marks a return to the light commercial vehicles sector for Hanna, where his proven leadership and historical involvement are expected to drive the brand's future growth and strengthen its market position.

Damien O’Sullivan, Managing Director, Volkswagen Group UK, said, “I am delighted to welcome David to the Board of Management of Volkswagen Group UK in his new role as Director of Volkswagen Commercial Vehicles.  I’m sure he will bring strong leadership and considerable experience to this important role.”

Hanna said, “Volkswagen Commercial Vehicles is a fantastic brand with class-leading products and an incredible history. It also has one of the best team of retailers in the UK through its Van Centre Network. I’m excited to be able to lead the team in the UK, and am very much looking forward to working with them and the network again in order to continue the success of the brand.”

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