Fleet operators to see strong growth amid demand surge
Indian trucking companies will generate revenue growth of 8 to 10 percent in the current financial year after expanding at 12 to 13 percent annually through March 2025, according to a Crisil report released on Monday. Domestic freight and import demand will drive expansion while exports remain weak, the ratings agency said.
Government infrastructure spending will speed deliveries and boost efficiency for transport operators, offsetting the impact of American tariffs on export volumes. Fleet usage rates will climb to 86 or 87 percent from 85 percent, despite new-vehicle purchases. Operating margins will hold steady at 8 to 8.5 percent as mandatory air conditioning in truck cabins raises costs from October.
Lower goods and services tax on commercial vehicles will reduce acquisition expenses after the rate drops to 18 percent from 28 percent. Companies will spend 1,200 to 1,300 crore rupees on fleet expansion, funded mostly through debt. Domestic business accounts for 65 to 70 percent of fleet operator revenue while international trade provides the balance.
