India’s commercial vehicle sector is undergoing a major transformation driven by sustainability, digital innovation, and infrastructure development, positioning the country as a burgeoning global logistics hub.
India’s commercial vehicle and logistics scene right now is really in the middle of a pretty big transformation. It’s being driven by a mix of sustainability goals, digital breakthroughs, and massive infrastructure projects. SML, one of the main players here, sees these big trends not just as outside forces but as key opportunities to reshape how the country moves goods around. Prashant Kumar, who’s the Chief General Manager of Marketing at SML, shared in an exclusive chat with MOTORINDIA how their company is positioning itself to lead this change—getting ready for a transportation future that’s more adaptable and sustainable.
What’s happening in India’s commercial mobility sector? Well, it’s literally undergoing three big changes—the push for greener solutions, the rise of digital tech, and infrastructure upgrades—that together could totally change freight movement. The move towards cleaner technologies is gaining speed, especially with mid-range electric trucks starting to appear as feasible options for cutting emissions and saving costs. Kumar pointed out that a mid-haul electric truck with around a 250 km range can cut about 50 tonnes of CO₂ emissions each year—per truck. That’s a pretty noteworthy improvement. And this is supported by government schemes like FAME II and the PM E-Drive programme, which are providing incentives for cleaner, more economically viable fleet options.
And it’s not just electrification. Digital tools are becoming more and more central—especially as e-commerce continues its rapid growth and demands quicker, more transparent last-mile deliveries. Advanced telematics systems are now tracking vehicles in real time, predicting maintenance needs, and analyzing driver behaviour—all helping to keep fleets running smoothly and efficiently. Plus, AI-driven solutions like better route planning and demand forecasting are making deliveries faster and more reliable. Basically, these digital advances are trending worldwide, where connected platforms are making supply chains sharper and more customer-centered.
Now, behind these tech leaps lies a strong push for infrastructure growth, supported significantly by policies like Pradhan Mantri Gati Shakti and the National Logistics Policy. These initiatives are helping set up dedicated freight corridors, Multi-Modal Logistics Parks (MMLPs), and new expressways—like the Nagpur–Vijayawada corridor—that cut down highway congestion, reduce transit times, and open up new economic zones. The government’s overall goal? Drop India’s logistics costs from their high current levels to around 8% of GDP—making the sector more competitive globally and boosting overall growth.
SML is not just about building vehicles—it’s also about creating smarter and greener logistics ecosystems. Central to its strategy is the SML SAARTI Pro platform, which uses telematics to give a full picture of fleet performance—covering fuel consumption, driver behaviour, engine conditions—to help optimize routes, cut idle time, and predict maintenance needs. They’re also focusing on sustainability at their Ropar plant—using solar power, LNG, and energy-efficient methods. And they’re planning to expand circular economy practices through battery recycling and schemes linked to vehicle scrappage, which shows their holistic approach to sustainability.
Customer needs are also changing how products are designed and how services are offered. Sectors like e-commerce, fast-moving consumer goods, and cold chain logistics are now demanding ultra-fast deliveries, high uptime, and real-time cargo tracking. To meet these, SML has introduced higher power-to-weight ratio engines and automated manual gearboxes (AMTs), addressing both speed and driver fatigue issues that come with just-in-time deliveries. They’re also deploying mobile workshops, providing 24/7 roadside support, and installing predictive alert systems to minimize downtime. Plus, factory-installed telematics—like GPS, geofencing, and APIs—improve supply chain visibility and help tracking environmental, social, and governance (ESG) metrics, which many fleet operators now require.
India’s market in commercial vehicles is quite large and still growing. According to industry analysts, it’s valued at around $170 billion in fiscal year 2024, with a promising 8-9% yearly increase expected over the next four years. Trucks are the backbone here—handling nearly half of the goods transported across the country—with more than 12 million trucks and countless drivers involved. Still, challenges like fragmentation, inefficiencies, and slow uptake of digital tools are hurdles that need tackling for the sector to reach its full potential.
As India moves forward on its green logistics path, big investments and infrastructure projects will continue to play a key role. For example, GreenLine Mobility Solutions, part of the Essar Group, recently committed about $275 million to clean up India’s heavy truck fleet. They plan to deploy over 10,000 LNG and electric trucks and build a broad network of LNG refuelling and EV charging stations across the country. Their experience with LNG trucks—reducing carbon output by roughly 30%—shows how alternative fuels are gaining ground alongside electric options.
Globally, decarbonizing trucking brings both opportunities and hurdles. Take Europe—ventures like Milence’s plan to set up 1,700 fast-charging stations show serious efforts to bridge infrastructure gaps. Still, high initial costs, limited vehicle range, and lagging legislation slow down adoption. Hydrogen fuel cell trucks hold promise for longer trips but face their own issues—like high energy use and limited refuelling points. Meanwhile, initiatives in Indian cities promoting electric freight routes mirror worldwide trends, demonstrating potential operational savings and emissions reductions with cleaner tech.
India’s big infrastructure projects, such as Bharatmala, Gati Shakti, and the Dedicated Freight Corridors, are critical for boosting logistics connectivity and cutting transit times by as much as 40%. Multi-Modal Logistics Parks (MMLPs) support efficient mode-switching, which can slash warehousing and transport costs while also helping reduce pollution and traffic congestion. However, obstacles remain—such as high upfront costs for small fleet operators, the scattered ownership of trucks, driver shortages, and regulatory issues—that need immediate policy solutions.
Looking ahead, industry leaders emphasize five major areas to help India become more competitive on the global stage: cutting logistics costs, speeding up deployment of green fuels and EV corridors, enhancing safety and emissions standards, upgrading driver skills and welfare, and localising advanced commercial vehicle platforms for export. With coordinated effort in these areas, the country aims not only to satisfy its own freight needs sustainably but also to establish itself as a key manufacturing and logistics hub across South Asia, Africa, and the Middle East.
In summary, India’s commercial vehicle and logistics landscape is at a crucial turning point. It’s propelled by sustainability goals, digital shifts, and huge infrastructure investments. Companies like SML are leading the charge—integrating telematics, electrification, and eco-friendly manufacturing into their strategies—while government policies are setting the stage for better efficiency and growth. But, of course, the road ahead isn’t without its challenges—financial hurdles, infrastructure gaps, operational inefficiencies. Still, the potential benefits—growth, environmental impact, and a stronger global logistics footprint—are well worth the effort.
References are included as per original source map.
Source: Noah Wire Services
