The Indian trucking industry accounts for around 4.5-5% of the country’s GDP, making it a valuable player for the economy, especially for the logistics sector. With an estimate of ~0.6-0.8 million units manufactured per annum, the Indian truck market is also the third-largest after China and the US. While the industry has its fair share of challenges, it is expected to reach a market size of more than $16 billion by 2023. Let’s take a look at the trends and key growth drivers that will govern the promising future of the truck transportation services business in India.
Among all the commercial vehicles that ply on the Indian roads for logistics services, freight forwarding and transportation, trucks are the most preferred vehicles owing to their sturdy and capacious design, easy loading and unloading process, and ability to navigate across most topographies to make last-mile deliveries. Several business are engaged in online truck booking to find the perfect lorry for their shipment!
The rapid rise in e-commerce sales, urbanization and disposable incomes along with the changing lifestyle profile of rural customers parallel to the the growth of the SME sector will push the demand for trucks in terms of both ownership and rentals. The manufacturers will enhance their production capabilities to supply trucks of different dimensions and load capacity. With the extent of variety offered on online truck booking platforms, shippers are spoilt for a choice!
The poor quality of highways and expressways and lack of remote connectivity result in operational delays and low profitability for businesses as they cannot expand to new markets.
Given that the road network contributes to the movement of 64.5% of all goods in the country, the Union Minister of State for Road, Transport and Shipping plans to build 65,000 km of national highways by 2022 and has also allowed 100% FDI in the road sector. There are several other commendable initiatives that the government has undertaken to promote the growth of road transport. This will enable trucks to move faster and hassle-free across the domestic borders and deliver goods to hidden pockets. The good quality roads will also result in lower maintenance and upkeep costs of trucks leading to cost-efficiency and a better pricing model.
The fuel consumption alone accounts for 45% of the cost in the trucking business. This directly impacts the freight rates, cost of truck rentals and price of goods.
To find a low-cost and sustainable replacement to fuel-operated trucks, the industry will be open to exploring electric truck options. A few Indian commercial vehicle manufacturers have already rolled out electric trucks, and some are on the verge of launching the same. The government’s Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) will further boost manufacturing and adoption of electric trucks. The transition to electric trucks will be gradual in the initial years but a crucial development in the truck business. In about 5-8 years, electric trucks will exist side-by-side fuel-run trucks in the transportation services vehicle fleet.
The trucking industry was slow to technology adoption due to resistance to change. However, the scenario is changing very fast with the introduction of mobile apps for online truck booking and online load booking, GPS devices, FASTag, E-Way Bill, etc. The COVID-19 pandemic has further accelerated the implementation of new-age technology and innovative operational models to replace the unviable traditional practices and scale the industry to new heights.
A new technology-driven trend that is making waves these days is online truck booking and online load booking through a digital marketplace. Vahak, a live transport market app for online truck booking and online load booking, is the pioneer of this trend in India. It connects road transporters and individual truck owners and allows them to make 100% commission-free deals at their convenience. With a 5 lakh+ transport network, 5000+ location reach and 1000+ daily active loads, Vahak has made both intercity and intracity online truck booking an effortless process. Vahak helps save over 90% of the time on online load booking and online lorry booking that transporters and truckers usually spend on telephonic calls.
The Indian truck industry is witnessing a radical transformation and is on its way to becoming a key global player.
Would you like to know how to book trucks or loads using the Vahak app? Read our guide on how to use Vahak online load booking and lorry booking app