Industry smells a jackpot as India's truck fleet hits 10-year high

India’s medium and heavy commercial vehicle (M&HCV) fleet is ageing rapidly, signalling a strong rise in replacement demand as fleet operators increasingly adopt newer, more efficient models featuring advanced technology and quicker turnaround times. According to data from manufacturers and ratings agency ICRA, the average age of M&HCV trucks on Indian roads has reached a record high of 10 years, the highest in two decades. This trend is attributed to postponed vehicle purchases during the COVID-19 pandemic and subdued sales in recent years. Senior Vice-President at ICRA, Ms. Kinjal Shah, noted that domestic M&HCV volumes remained flat YoY in FY24 and declined by 4% YoY in FY25. Mandatory scrapping of government vehicles older than 15 years, effective from April 1, 2023, is also expected to stimulate replacement demand in the medium term.
Industry leaders are preparing for this surge in demand. Managing Director and Chief Executive Officer of Ashok Leyland, Mr. Shenu Agarwal, highlighted that fleet replacement will accelerate, particularly in the M&HCV segment due to the ageing fleet. Industry data shows that approximately 3.7 million trucks have been sold in India from FY10 onwards across Bharat Stage (BS) 0 to BS6 emission norms, with one million BS6 trucks entering the market in the last four years. Nearly 50% of trucks sold in the past 15 years are over 11 years old, signalling imminent replacement needs. Managing Director and Chief Executive Officer of Volvo Eicher Commercial Vehicles, Mr. Vinod Aggarwal, added that improved road infrastructure allows new trucks to operate at 15,000-20,000 kilometers (KM) per month compared to 8,000-10,000 km for older vehicles. Telematics-enabled trucks offer faster turnaround times, enhancing demand. Replacement sales currently account for 60% of all M&HCV purchases. Though total sales have not yet returned to the FY19 peak of 2,95,000 units, FY25 sales of 2,48,000 units show improvement, with a 10% increase in sales by payload capacity.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.