May 11 , 2022
5 mins read

How to set up a road transport business in India?

Punit Chotia
Punit Chotia
How to set up a road transport business in India?
How to set up a road transport business in India?
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Are you looking to launch a transport business in India? One will face heavy competition and a lot of challenges. The first challenge is to determine what type of vehicle you will invest in. Next, you need a proper business plan and funds to execute the plan. You also need to have a clear understanding of the legal requirements for offering transport services in India. You also need to figure out how to get loads and make connections with other transporters.

Let us look at the steps involved in setting up a transport business.

Step 1: Choosing vehicles for your transport business

man choosing a truck for his transport business
Buy a suitable truck for your transport business

The first decision is to choose the right type of vehicle suitable for your transport business. You can decide whether you want to invest in trucks, trailers, containers, heavy commercial trucks, or light commercial vehicles. Each has its own load carrying capacity and purchase price. For example, light commercial vehicles are less expensive as compared to containers or trailers.

You should plan the size of the transport vehicle depending on whether you plan to service short-haul or long-haul routes.

Step 2: Deciding the number of vehicles

Transport business trucks standing in a line
How many trucks will your transport business have?

Here you must decide whether you want to purchase a fleet of trucks or only one truck. Choosing the right number of vehicles for your transport business depends on the size of funds you are looking to invest, as well as your professional experience.

Plan your services accordingly, so you know what your business is capable of and can establish. If you have been a truck owner or a fleet owner in the past, you can choose to buy a fleet.

Step 3: Preparing a transport business plan

Man planning his transport business
How will you grow your transport business?

The next step is making a business plan for launching the services. The plan should lay out how you will make money, how much capital you need, and all the potential expenses. This should include one-time expenses such as investing in a vehicle and ongoing expenses such as salaries for drivers, repair and maintenance etc.

Listing out all the details will help you execute your transport business plan better, as you would know your costs in and out, this makes gathering funds easier.

Step 4: Planning the transport routes for your business

Man thinking about his transport business routes
What major routes will you operate in?

Before launching the transport business, you should plan out the exact routes on which you want to operate. Depending on the locations you plan to cover, you should choose an appropriate permit. If you plan to operate in more than one state, you need a National permit or an All India permit.

You should also get an estimate of your fleet’s capacity by calculating the number of tons it can handle and the trips it can make in a particular period. If you have a network of transporters, you should check what type of load can give you the maximum value for your available capacity.

legal documents for transport business
Prepare the legal documents for your transport business

You should understand all the legal requirements for setting up a transport business. Among the basics, you should do GST registration. Linked to the GST, an Electronic-way bill (E-way bill) document is needed for transporting and shipping goods in India.

The E-way bill is part of a government rule that requires transporters to upload essential information on the GST portal before starting the goods movement. Here are the steps to generate E-way bill.

Step 6: Finding loads online for your transport business

Finding loads for transport business in India
Using Vahak for finding loads online easily

Many people use online truck booking apps to book trucks. To make the most out of your transport business, you should consider listing your vehicle on an online transport directory as well as a truck booking app. This is an easy way of launching your transport service in COVID times.

Vahak is India’s leading online directory and lorry booking app with more than 2lac+ verified  transporters and 1000+ daily active loads. Transporters can get leads for loads easily through the mobile app. If you have a load but don’t have a suitable truck in your fleet, you can even book the right trucks online through Vahak.

Step 7: Connecting with transporters PAN-India and growing

Growing a transport business network
Connect with other top transport businesses in India

Often you may be required to connect with transporters from other states. In the transport business, people need to trust your services, that is why contacts and references help your business the most. You can also make quick connections through Vahak’s online transport marketplace, which has a vast network of over 10 lac+ transporters from all over the country.

With your strong personal business network of transporters, you can be more confident in taking transport services orders beyond your current capabilities.

Conclusion

To set up a transport business in India, you should do the proper research of what vehicle, which locations, and what goods and services you would like to transport. After this, you should make a strategic plan and then execute it with adequate funds.

Once you start the transport business, you can list your business on Vahak. Whether you have trailers, trucks, or containers, you can promote your transport brand online on Vahak without having to worry about setting up your own website. With a seamless app-based experience, you don’t have to worry about getting bookings on the phone. Vahak is a 100% free online truck or load booking app with no registration charges. There are no middlemen involved, leading to better revenue realization for fleet owners.

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