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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In a landmark move for Japan’s commercial vehicle sector, Mitsubishi Fuso Truck and Bus Corporation and Hino Motors have signed definitive agreements to integrate their operations. The merger will take place under a new holding company set to be established by April 2026, with Tokyo as its headquarters.

The new combined entity will have over 40,000 employees with the scale, resources and technology leadership to disrupt the commercial vehicle landscape in the Asia-Pacific region and beyond. It will own 100 percent of Mitsubishi Fuso and Hino Motors.

The integration is the result of a collaboration between four major automotive players: Daimler Truck AG, Mitsubishi Fuso, Hino Motors and Toyota Motor Corporation. Both Daimler Truck and Toyota plan to acquire a 25 percent stake each in the newly listed holding company, which will in turn fully own Mitsubishi Fuso and Hino. The new entity is expected to be listed on the Prime Market of the Tokyo Stock Exchange, with Karl Deppen, current CEO of Mitsubishi Fuso, appointed as CEO of the holding company.

The partnership is designed to bring Mitsubishi Fuso and Hino together on an equal footing, with joint efforts across commercial vehicle development, procurement and production. It aims to enhance operational efficiency, improve global competitiveness and bolster the automotive industry across Japan and Asia.

The alliance underscores the companies’ shared vision of supporting society through sustainable mobility. A key focus of the integration will be addressing the urgent challenges facing the commercial vehicle industry, including decarbonisation, logistics efficiency and the development of CASE technologies (Connected, Autonomous, Shared and Electric mobility) alongside the adoption of hydrogen solutions.

Karin Radstrom, CEO, Daimler Truck, said, “The now decided integration of Mitsubishi Fuso and Hino Motors is truly historic. We are bringing together two strong partners to form an even stronger company and to successfully shape the decarbonisation of transportation. Together, Mitsubishi Fuso and Hino Motors have great potential to leverage scale – and scale is key to win in the technological transformation of our industry. Karl Deppen is an experienced and strong leader who comprehends the whole value chain of our business and I’m therefore convinced that he can bring the new company to the next level.”

Koji Sato, CEO, Toyota Motor Corporation, said, “We believe that the future is for us to build together. Today’s final agreement is not the goal but the starting line. Our four companies, aiming to achieve a sustainable mobility society, will continue to create the future of commercial vehicles together.”

Karl Deppen, CEO, Mitsubishi Fuso and designated CEO of new holding company, said, “Today is a great day for all our stakeholders. We are shaping the industry by bundling our strengths. With a strong new company we combine our two trusted brands, our resources, competencies and expertise to even better support our customers in their transportation needs in the future. I feel honoured and excited to be the designated leader of the new company and am grateful for the trust and encouragement from Toyota and Daimler Truck to make it happen.”

Satoshi Ogiso, CEO, Hino, said, “Cooperation among these 4 companies is truly ‘once-in-a-lifetime opportunity’. In addition to operational synergy, we can expect immeasurable synergy affection from synthesising different culture and climate of us. Under commonly aimed aspiration, we are confident with building strong and resilient team to empathising with each other and contributing to society. As a new commercial vehicle company rooted in Japan, we collaboratively create ever better future.”

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Tata Motors has introduced factory-fitted air conditioning systems across its entire truck range, marking a significant upgrade for drivers in India. The new AC systems are now available in all cabin models, including the SFC, LPT, Ultra, Signa and Prima, as well as cowl models for the first time.

The advanced air conditioning system features dual-mode operation with Eco and Heavy settings, ensuring optimal cooling while improving energy efficiency. Alongside this comfort upgrade, Tata Motors has also enhanced the power output of its heavy trucks, tippers and prime movers, now delivering up to 320 hp. These trucks also incorporate intelligent fuel-saving technology to maximise efficiency, making them suitable for a wide range of applications.

Additional improvements include duty-cycle-based fuel efficiency features such as engine idle auto-shut and a voice messaging system that provides real-time alerts. These upgrades reflect Tata Motors’ commitment to setting new benchmarks in performance, driveability and driver comfort.

By offering factory-fitted AC across its entire range, including cowl models, Tata Motors is reinforcing its leadership in India’s commercial vehicle market while prioritizing both operational efficiency and driver well-being.

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TVS Motor Company has announced a leadership transition, with Sudarshan Venu set to take over as Chairman and Managing Director effective 25 August 2025. The Board of Directors unanimously approved his appointment in recognition of his significant contributions to the company’s growth and strategic direction during his tenure as Director.

Current Chairman Sir Ralf Speth has informed the Board that he will not seek re-appointment as a Director at the upcoming Annual General Meeting (AGM). As a result, he will step down as Chairman at the conclusion of the AGM on 22 August 2025. However, to ensure continuity and leverage his expertise, the Board has appointed Speth as Chief Mentor for a three-year term, effective 23 August 2025.

Venu Srinivasan, Chairman Emeritus, TVS Motor Company, said, "I express my sincere gratitude to Ralf for his exceptional leadership as Chairman over the last three years. His contributions have been invaluable in guiding our strategic expansion into global markets and fostering innovation that has significantly strengthened our industry standing. We are grateful for his continued support as Chief Mentor for TVS Motor and in welcoming Sudarshan into his new role. I am confident that Sudarshan, who, in his capacity as Managing Director, has demonstrated tremendous growth for the business, will take the Company to even greater heights.”

Sir Ralf Speth said, "It has been an honour for me to steer TVS Motor Company as its Chairman over the last three years. I am grateful for the support, cooperation and personal friendships developed during my tenure. As I hand over the Chairmanship to Sudarshan, I am confident that under his leadership, the Company will continue its growth journey while championing core TVS values. Sudarshan’s dynamism and passion underscore his vision for the business, and I am confident that TVS is in safe, responsible hands. I wish Sudarshan and TVS Motor a bright future ahead.”                               

Sudarshan Venu said, "I am very thankful to the Board for giving me this singular opportunity. I am really honoured and excited for the future and look forward to their continued support. TVS has been built on our Chairman Emeritus’s commitment to customer centricity, quality and technology. As we look to the future, we have to build on these values while capitalising on new opportunities and reimagining for the future. I am most grateful to him for his continued guidance. Sir Ralf has been instrumental in challenging and mentoring us to expand more globally, onboard international talent, embrace newer processes and invest in future products and technology. I look forward to his continued mentorship as our Chief Mentor. Importantly, TVS has grown due to the passion and energy of the entire team. I look forward to the continued partnership in our shared future.”

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Environment Day On the occasion of World Environment Day, VE Commercial Vehicles (VECV) has reaffirmed its commitment to sustainability -aligned with India’s Net Zero commitments. It has measurable strides towards reducing its environmental footprint. In this direction, it recently launched the first ever electric truck, the Eicher Pro X that is capable of zero tailpipe emission operation in mid and last-mile delivery segments. 
With electric buses in operation since 2022 in various states across India, VECV has pushed sustainability-led innovation in its Bhopal plant, inaugurated in 2020. This facility is India’s first commercial vehicle manufacturing unit built on Industry 4.0 principles that seamlessly blends digital intelligence, operator ergonomics and eco-conscious design. 
The integration of AI-powered, real-time energy monitoring systems further optimises consumption and boosts operational efficiency. The Eicher Pro X is built in this plant, which also has an all-woman final assembly line. 
Speaking about the company’s commitment to Net Zero, Vinod Aggarwal, MD and CEO, VECV, said, “In line with India’s Net Zero vision defined by Honourable Prime Minister Sh. Narendra Modi ji, VECV is committed to delivering future-ready mobility solutions—from electric, LNG and CNG trucks and buses to emerging technologies like hydrogen and fuel cells—as the market matures. Our investments in smart manufacturing, renewable energy, and responsible resource management reflect a holistic approach to sustainable growth. As we celebrate #WorldEnvironmentDay, let's work together to be the change we want to see!”
Aiming to achieve 70 percent renewable energy usage by FY27 and become water positive by 2030. VECV is focussing on improving our gender diversity, energy efficiency, waste reduction, Zero Waste to landfill, plantation and emissions control by executing impactful projects contributing significantly to the United Nations Sustainable Development Goals (SDGs) 6, 7, 12, and 13. 
A significant milestone in this journey has been by developing a water body with around 52 million litre capacity in its facility at Bhopal. The water body is sufficient to run the plant for four months. Similarly on the energy front, the company has transitioned to 100 percent LED lighting across all its facilities, replacing close to 5000 conventional lighting fixtures. This move has led to a substantial reduction in energy intensity – from 3.85 GJ/MINR in FY23 to 3.74 GJ/MINR of revenue in FY24. 

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