India Truck Market Research Report and Industry Forecast

India Truck Market Summary:

The India truck market size reached USD 23,864.7 Million in 2024. The market is projected to reach USD 47,140.2 Million by 2033, exhibiting a growth rate (CAGR) of 7.46% during 2025-2033. The market growth is attributed to rising demand for goods transportation in agriculture, manufacturing, and e-commerce sectors, expanding infrastructure, government initiatives promoting cleaner trucks, and technological advancements in fleet management.

Market Insights:

• West and Central India dominated the market in 2024.
• Light Duty Trucks represent the largest vehicle type segment.
• Above 30 Tons accounts for the largest share in tonnage capacity.
• Diesel was the leading fuel type segment in 2024.
• Logistics is the largest application segment.

Market Size & Forecast:

• 2024 Market Size: USD 23,864.7 Million
• 2033 Projected Market Size: USD 47,140.2 Million
• CAGR (2025-2033): 7.46%
• West and Central India: Dominates the market due to industrial growth in Maharashtra and Gujarat.

A truck is a large, powerful vehicle designed primarily for the transport of goods and materials over long distances. It comprises a chassis, an engine, a cab, and a body, wherein the body may vary significantly depending on the intended use, including flatbeds, box bodies, or specialized designs for specific cargo, such as refrigerated goods. Some trucks, known as pickup trucks, are smaller and used for personal transportation, as well as light cargo hauling. Trucks are integral to modern supply chains, facilitating the movement of goods from manufacturing facilities to warehouses, retail outlets, and consumers. It can navigate a variety of terrains and weather conditions, contributing to its versatility.

The truck market share in India is experiencing rapid urbanization and industrialization, with an increasing number of individuals migrating to cities in search of better opportunities. This urban shift has resulted in the growth of industries, manufacturing hubs, and commercial activities, leading to a rise in the demand for goods transportation. In addition, the emerging agriculture sector in India, and the development of rural areas heavily rely on the transportation of agricultural produce, livestock, and farm equipment. The agricultural supply chain requires a robust fleet of trucks to transport goods from farms to markets, processing units, and storage facilities, which is significantly supporting the Indian truck market. As the operating costs of older trucks increase due to higher fuel consumption and maintenance expenses, fleet owners and logistics companies are opting for modern trucks that offer better mileage, enhanced safety features, and advanced technologies. Moreover, continual technological advancements in the truck, such as the integration of telematics, GPS tracking, and connectivity solutions, have improved fleet management, route optimization, and overall operational efficiency. These advancements have encouraged fleet owners to invest in new trucks, further contributing to the market growth.

India Truck Market Trends/Drivers:

E-commerce and Last-Mile Delivery

The rapid growth of e-commerce in India has been a major market driver for the truck industry. The growing popularity of online shopping has led to a rise in the demand for last-mile delivery services, requiring a reliable and extensive fleet of trucks to transport goods from warehouses to customers' doorsteps. With the escalating number of e-commerce players and the entry of global giants, the demand for efficient and cost-effective logistics solutions has increased, contributing to Indian truck market growth. In confluence with this, the emergence of new business models, such as hyperlocal delivery, where goods are delivered within a limited radius. This has further influenced the demand for smaller, agile trucks that can navigate through narrow lanes and congested urban areas. On May 5, 2025, Volvo Trucks reported a 25% increase in global sales of gas-powered trucks in 2024, with over 8,000 units sold. These trucks can achieve up to 100% CO2 reduction when using biogas, offering a significant environmental benefit compared to diesel trucks. The Volvo FM, FH, and FH Aero models are equipped with engines providing a driving range of 1,000 km and are capable of handling loads up to 60 tons, making them suitable for long-haul and regional distribution. As a result, truck manufacturers have introduced specialized models catering to the specific requirements of e-commerce logistics, such as refrigerated trucks for food delivery and vehicles equipped with advanced tracking systems for real-time monitoring.

Government Initiatives and Regulations

The Indian government's initiatives and regulations have played a crucial role in driving the growth of the truck industry. The implementation of the favorable tax schemes, which replaced multiple indirect taxes, leading to the consolidation of warehouses and distribution centers is significantly supporting the Indian truck market demand. This has also impacted the efficiency of supply chains, resulting in higher demand for trucks to transport goods across longer distances. Moreover, the government's focus on reducing vehicular emissions and promoting sustainable transportation has prompted the adoption of cleaner and more fuel-efficient trucks. The introduction of stricter emission norms has necessitated the development and production of technologically advanced trucks that comply with these regulations. Apart from this, the government's various campaigns, aimed at promoting domestic manufacturing, have incentivized both domestic and international truck manufacturers to invest in the country. This has led to the introduction of new truck models, increased localization of production, and the establishment of manufacturing facilities, this is driving the growth of the industry further. Beyond EV incentives, the government is investing in logistics parks, freight corridors, and real-time tolling (FASTag integration with fleet ERPs) to optimize freight movement. National Logistics Policy (NLP) provisions focus on truck fleet digitization and multimodal logistics convergence. The government’s INR 500 Crore allocation under the PM E-DRIVE scheme is set to support 5,643 electric trucks in FY2026, making clean freight more accessible. With subsidies up to INR 9.6 Lakh based on truck size and battery capacity, the initiative provides a strong boost to the heavy-duty truck segment. Additionally, minimum 5-year warranties ensure long-term reliability, helping build a sustainable and greener transport future.

Key Growth Drivers Accelerating India Truck Market Expansion

The shift toward multimodal logistics, aided by digital freight platforms and real-time route optimization technologies, is a key growth enabler. India's rising cold-chain logistics in pharmaceuticals and perishable goods is generating steady truck demand across temperature-controlled fleets. Additionally, increasing highway penetration in Northeast and hilly terrains has unlocked new demand corridors. As per Indian truck market analysis, OEMs are collaborating with tech startups for fleet telematics and asset tracking, enhancing truck utility in remote operations. The EV truck sector in India has achieved a major milestone, surpassing 10,400 units sold in 2024, reflecting a 53% growth from 2023. Demand is expected to rise further with projections of over 15,000 units in 2025, driven by lower fuel and maintenance costs, government incentives, and rising fuel prices. Together, these dynamics are fueling volume growth beyond conventional long-haul freight.

Emerging Opportunities and Structural Challenges in India’s Truck Sector

India’s transition to smart logistics hubs and urban freight zones opens new demand pockets for specialized truck fleets, including EVs, reefers, and intermodal haulers. Indian government is encouraging e-bus and e-truck adoption, while setting a target of 30% EV penetration by 2030. The government also released a report in July 2025 projecting e-truck adoption and prepared an assessment of 100+ freight corridors for e-truck deployment. As of May 2025, 10 priority corridors were identified for zero-emission trucking. Meanwhile, growth in Tier II and III warehousing hubs boosts regional truck usage. However, limited driver availability and training, informal financing barriers for fleet upgrades, and fragmented truck ownership structures remain core challenges. Compliance with evolving safety and emission norms also increases operating complexity, especially for unorganized players. These opposing forces shape a uniquely complex growth environment.

India Truck Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India truck market report, along with forecasts at the country and regional level from 2025-2033. Our report has categorized the market based on vehicle type, tonnage capacity, fuel type and application.

Breakup by Vehicle Type:

• Heavy Duty Truck
• Medium Duty Truck
• Light Duty Truck

Light duty truck represents the most widely used vehicle type

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes heavy duty truck, medium duty truck, and light duty truck. According to the report, light duty truck represented the largest segment.

The market drivers for light-duty trucks in the Indian truck industry are shaped by the growth of e-commerce and last-mile delivery services. Additionally, the rising the demand for smaller and agile trucks that are capable of navigating congested urban areas for efficient goods transportation. Along with this, the emergence of online shopping and hyperlocal delivery models necessitates a reliable fleet of light-duty trucks to cater to the increasing volume of deliveries. In addition, the expansion of small and medium-sized enterprises (SMEs) across various sectors has influenced the need for cost-effective transportation solutions. Light-duty trucks provide a flexible and economical option for SMEs, enabling them to transport goods within shorter distances. Moreover, government initiatives promoting sustainable transportation, such as stricter emission norms, have incentivized the adoption of cleaner and more fuel-efficient light-duty trucks. These regulations align with the industry's focus on reducing carbon footprint and operating costs, driving the market for environmentally friendly light-duty trucks in India.

Breakup by Tonnage Capacity:

• 3.5 – 7.5 Tons
• 7.5 – 16 Tons
• 16 – 30 Tons
• Above 30 Tons

Above 30 tons account for the majority of the market share

A detailed breakup and analysis of the market based on the tonnage capacity have also been provided in the report. This includes 3.5 – 7.5 tons, 7.5 – 16 tons, 16 – 30 tons, and above 30 tons. According to the report, the above 30 tons segment accounted for the largest market share.

The market drivers for trucks with tonnage capacity above 30 tons in the Indian truck industry are influenced by the ongoing infrastructure development projects in the country, such as road construction and port expansion, creating a significant demand for heavy-duty trucks capable of transporting construction materials and goods over long distances. These infrastructure initiatives, driven by government investments, have influenced the growth of the logistics and transportation sectors, thereby impelling the demand for high-capacity trucks. In confluence with this, the growth of manufacturing, mining, and agriculture industries requires the efficient movement of heavy cargo. Trucks with tonnage capacity above 30 tons provide the necessary payload capacity and power to handle large volumes of goods, facilitating the smooth flow of industrial operations. Furthermore, the government's focus on enhancing the efficiency of the logistics sector through initiatives, including the promotion of multimodal transportation has stimulated the demand for high-capacity trucks to cater to the evolving supply chain requirements.

Breakup by Fuel Type:

• Diesel
• Petrol
• CNG & LNG

Diesel represents the most widely used fuel type

The report has provided a detailed breakup and analysis of the market based on the fuel type. This includes diesel, petrol, and CNG & LNG. According to the report, diesel represented the largest segment.

Diesel fuel continues to be a dominant market driver in the India truck as it offers a higher energy density compared to other fuel types, making it suitable for heavy-duty trucks that require more power and torque for hauling heavy loads, which in turn impelling the demand across the country. Moreover, the efficient combustion properties of diesel fuel result in better fuel economy, which is a crucial factor for commercial vehicles where operating costs play a significant role, thereby influencing the market. Additionally, the extensive availability of diesel fuel infrastructure across the country ensures easy access to refueling, enabling uninterrupted operations for truck fleets. Moreover, the durability and reliability of diesel engines make them well-suited for the demanding conditions often encountered in long-haul transportation and off-road applications.

Breakup by Application:

• Construction
• Logistics
• Others

Logistics account for the majority of the market share

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes construction, logistics, and others. According to the report, the logistics segment accounted for the largest market share.

As more consumers opt for doorstep deliveries, the need for a robust and well-connected logistics network has become paramount. This has led to growing investment by numerous public and private agencies to upgrade the overall logistics infrastructure, including the improvement of warehouses, distribution centers, and transportation fleets, which is further propelling the demand for trucks across the country. Moreover, the rapid expansion of organized retail, manufacturing, and industrial sectors has created a growing need for seamless and timely movement of goods across the country. Trucks play a vital role in facilitating the last-mile delivery and transportation of goods from production centers to retail outlets, warehouses, and consumers. These factors highlight the crucial role of logistics applications in driving the growth of the truck industry in India.

Breakup by Region:

• North India
• West and Central India
• South India
• East India

West and Central India exhibit a clear dominance, accounting for the largest India truck market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, South India and East India.

In West and Central India, the key market driver for the truck industry is the region's industrial development, particularly in sectors, such as manufacturing, construction, mining, and agriculture. Also, the increasing demand for efficient transportation of raw materials finished goods, and agricultural produce, in turn, propelling the need for efficient, durable, and versatile trucks. Apart from this, the Western region, which includes the industrial powerhouses of Maharashtra and Gujarat, is a hub for various industries, including automotive, textiles, and petrochemicals, which is impelling the demand for trucks. In addition to this, Central India, with states, such as Madhya Pradesh, is rich in natural resources and is a significant contributor to the country's agricultural and mining output is significantly supporting the uptake of trucks across the country.

Competitive Landscape:

The India truck market is experiencing significant growth due to the growing investments in the infrastructure projects, such as highways, bridges, and ports by the government increasing need for heavy-duty trucks to support these developments. Companies in the truck industry are offering vehicles specially designed for these types of projects. As the country's pharmaceutical and food processing sectors grow, there is a high demand for cold chain logistics, this is encouraging leading truck manufacturers to provide specialized refrigerated trucks. In addition, the Indian government's push towards green and sustainable solutions is escalating the adoption of electric vehicles (EVs). There's a significant market opportunity for truck manufacturers to invest in developing electric trucks suitable for India's diverse terrain and climatic conditions. With the advent of technologies including AI, IoT, and autonomous driving, companies are introducing develop advanced, tech-driven trucks that offer features, such as fuel efficiency, predictive maintenance, and improved safety, appealing to modern customers' needs.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Ashok Leyland Limited
• Daimler India Commercial Vehicles Pvt. Ltd
• Hino Motors Sales India Private Limited
• Mahindra & Mahindra
• Scania Commercial Vehicles India Pvt. Ltd.
• SML ISUZU Ltd.
• Tata Motors Limited
• VE Commercial Vehicles Limited

Latest News and Developments:

• On October 31, 2024, Volvo Trucks launched two advanced safety systems designed to protect pedestrians and cyclists. The Active Side Collision Avoidance Support system, which includes an active brake function, will be available in Volvo FH, FM, and FMX models starting November 2024. Additionally, the next-generation Collision Warning with Emergency Brake system, capable of detecting pedestrians and cyclists, will be standard in Europe from 2025 and exceeds upcoming European safety regulations.
• On May 10, 2025, Adani Enterprises launched India’s first hydrogen-powered truck for mining logistics, marking a significant step towards sustainable transportation. The truck, equipped with three hydrogen tanks, is capable of carrying 40 tons of cargo over a 200-kilometer range and will be used for coal transportation in Chhattisgarh. This initiative is part of Adani's broader strategy to replace diesel trucks with hydrogen-powered vehicles, aiming to reduce carbon emissions in its mining operations.
• On April 17, 2024, Daimler India Commercial Vehicles (DICV) announced the market launch of the all-electric Next Generation eCanter in India, marking its entry into the country's battery-electric commercial vehicle market. The light-duty truck will be available within 6 to 12 months and is part of DICV's strategy to decarbonize its product portfolio, in line with Daimler Truck's global vision of achieving CO2-neutral transport by 2050.
• On January 17, 2025, Eicher Trucks and Buses launched its electric-first Eicher Pro X Range at the Bharat Mobility Global Expo, marking its entry into the 2-3.5T Small Commercial Vehicle (SCV) segment in India. The Pro X series features the largest cargo space in its class, best-in-class energy efficiency, and driver-centric features like air-conditioned cabins and advanced safety systems. These trucks are manufactured at Eicher's Industry 4.0-enabled Bhopal plant, and co-developed with logistics players.

India Truck Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India truck market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India truck market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India truck industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.