India Road Freight Market is Expected to Cross INR 9,500 Bn by 2024: Ken Research

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The truckers who have bought trucks with 50-100% institutional finance will see a tough time due to COVID 19 and need to maintain 90% capacity utilisation for upcoming EMIs, Insurance premiums & Permit with same freight cost in spite of high diesel cost.

The Government is investing ₹ 20-30 Tn (15% via PPP) in transport infrastructure with focus on rural & last mile connectivity & increase in outlay of 39% to PMGSY.

Government Change in Regulations such as Revision in GST norms to increase the transparency, Restrictions on the age of trucks and Revision in Axle Load Norms to Bring GVW at par with Global Markets will impact the Road freight market.

Covid-19 Impact on Trucking Industry in India:  During the Lockdown phase, Imports and Exports have fallen from major trading partners such as China, US and UAE affecting the road freight volumes transported from ports to other parts of India. Majority of the truckers are Small fleet operators who are the worst hit as they need to maintain 90% capacity utilization in order to bear additional expenses such as EMI, Insurance Premium and Permits. LFO s and MFOs who are more inclined towards Asset light model are even affected due to shortage of Drivers and labourers. The trucking will see negative growth rate in the FY’2021 due to complete lockdown and transportation of only essential commodities, but is expected to revive back in FY22.

Revision in Road Freight Norms by Government: The government regulations such as axle norms increasing Maximum Possible Payload reducing freight rates, phasing out older & polluting vehicles that are over 15 years old, GST to Increase Transparency, Reduce Delays and Administration Costs will Impact the Road Freight Industry.

india-road-freight-industry

Adoption of New Technology: Companies have started adoption of new technologies such as TMS, GPS for real time tracking assuring transparency to their clients.  Larger Domestic Companies are even moving towards Asset Light Model having tie ups with Local Subcontractors. Digital Freight brokerage platforms such as Rivigo, Truckola, Trucksuvidha   and many more are being very popular in India and are used by many companies for short and long hauls solving the problem of empty returns and maintaining their margins.

Analysts at Ken Research in their latest publication India Road Freight Market Outlook to 2024 – Driven by BS VI Norms, revision in Existing Axle Norms by the Government and Technological Advancements believe that the Road Freight Market in India is expected to grow due to rising Competition in Road freight market, Rising Digital aggregator Start ups for trucking and e commerce market, Introduction of GST, E way Bills, Fastags along with Technological Advancements.

Key Segments Covered:-

Freight Forwarding Market

By  Mode of Transportation

Road Freight (Fleets, Volume, FTK, Price/ton/km and Revenue)

Sea Freight (Volume, Price/ton/km, Revenue and Inland Coastal Shipping Price/ton/km)

Air Freight (Volume, Price/ton/km and Revenue)

By Road transportation

Less than Truck load (Revenue)

Full truck load (Revenue)

By Type of Fleets (Number of Fleets)

Less Goods Carrier Vehicles

High Goods Carrier Vehicles

Companies Covered:-

GATI-KWE

VRL Logistics

TCI

OM Logistics

DGFC

Varuna

Express Logistics

Aggarwal Packers and Movers

NTC Logistics

FSC

Associated Road Carriers

KerryIndev Logistics

Coastal Roadways

Stellar Value Chain

Sical Logistics

VTrans

CEVA

Anand Roadlines

Southern Cargo

Andhra Bangalore Roadways

DHL

CTC Freight Carriers

Mahindra Logistics

ALL Cargo

TVS

Key Target Audience:-

Freight Forwarding Companies

E Commerce Logistics Companies

3PL Companies

Consultancy Companies

Logistics/Warehousing Companies

Time Period Captured in the Report:-

Historical Period – FY14-FY19

Forecast Period – FY20-FY24

Key Topics Covered in the Report:-

India Logistics and Warehousing Market Introduction

Logistics Infrastructure

Cross Comparison of Logistics Performance in Different Countries (Germany, US, India, Australia, China, Vietnam, Philippines)

India Logistics and Warehousing Market Size

India Logistics and Warehousing Market Segmentation

India Logistics and Warehousing Market Future Outlook

India Logistics And Warehousing Market Future Segmentation

India Freight Market Size

India Freight Market Segmentation

India Freight Market Future Outlook

India Freight Market Future Segmentation

India Trucking Market Size

India Trucking Ecosystem

India Trucking Market Segmentation

India Trucking Market Future Outlook

India Trucking Market Future Segmentation

Innovations in Transportation Market

Investment Model on Road freight transportation

Regulatory Environment

Issues and Challenges

For More Information on the research report, refer to below link:-

India Road Freight Market

Related Reports:-

Philippines Road Freight Market Outlook To 2024 – Driven By Government Spending On Road Infrastructure and Technological Advancements

Philippines Logistics And Warehousing Market Outlook To 2024 – By Freight Forwarding (Air, Sea, Land), Domestic And International Freight Flow Corridor; By Warehousing (Industrial/Retail Freight, Container Freight, Cold Storage, Agriculture And Others), Express And E-Commerce Logistics, Balikbayan Box, Third Party Logistics

Indonesia Logistics and Warehousing Market Outlook to 2023 – Driven by Infrastructure Spending for Airport and Seaports Albeit by Poor Existing Road Network

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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