India Truck Market to Grow with a CAGR of 7.49% through 2031

The Indian truck market is driven by expanding infrastructure, rapid urbanization, and a growing demand for e-commerce logistics. These factors, coupled with technological advancements in fleet management, are propelling the market forward. The growing focus on sustainability through electric trucks and alternative fuels is shaping the future of transportation in India. These are the factors driving the market in the forecast period.     

According to TechSci Research report, “India Truck Market – By Region, Competition, Forecast & Opportunities, 2021-2031F”, The India Truck Market was valued at USD 21.86 Billion in 2025 and is expected to reach USD 41.14 Billion by 2031 with a CAGR of 7.49% during the forecast period. The Indian truck industry is poised for strong growth, driven by ongoing infrastructural improvements that enhance connectivity and reduce transportation costs. Investments in road networks, highways, and logistics hubs are helping facilitate smoother freight movement across the nation. These advancements are vital in supporting the growing demands of industries like retail, manufacturing, and construction, as efficient transportation is crucial to their operations.

The expansion of e-commerce is another key factor fueling the market’s growth. The need for reliable, fast, and affordable logistics is increasing the demand for Light Duty and Medium Duty Trucks, particularly for urban last-mile deliveries. This surge in demand from online retailers and delivery companies is pushing operators to expand their fleet size.

Furthermore, with environmental concerns becoming a priority, the shift to electric and hybrid trucks is gaining traction. Government incentives to promote electric vehicle adoption are expected to accelerate this transition, leading to reduced fuel consumption and lower carbon footprints. Despite these growth drivers, the industry faces several challenges. High fuel costs continue to impact operating expenses, while a shortage of skilled drivers leads to delays and increased logistics costs. Stringent regulations on emissions and safety are also putting pressure on manufacturers to upgrade their fleets to meet new standards. While these challenges present obstacles, the opportunities in the form of market expansion, technological innovations, and the growing demand for sustainable transportation continue to offer a positive outlook for the Indian truck market.

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India Truck Market Is Segmented By Vehicle Type, Propulsion, Class, and By Region.  

Based on Propulsion, Electric trucks are gaining momentum due to the growing focus on sustainability and reducing carbon emissions. These vehicles offer a cleaner alternative to traditional fuel-powered trucks, and their adoption is encouraged by government incentives aimed at promoting electric mobility. While the electric truck segment is still in its early stages, advancements in battery technology and expanding charging infrastructure are expected to accelerate growth in this segment over time.

In 2025, the Southern region of India is poised to be the fastest-growing market for trucks. The region benefits from a well-developed industrial base, including major sectors like manufacturing, agriculture, and automotive, all of which drive demand for efficient transportation solutions. States like Tamil Nadu, Karnataka, and Andhra Pradesh have seen a rapid expansion in infrastructure development, with improved road networks and connectivity, making trucking operations more efficient and reliable. The Southern region's industrial growth has led to a higher need for both Light Duty and Medium Duty Trucks, especially for short to medium-distance transportation. The rise in e-commerce and urbanization in cities such as Bengaluru and Chennai is further contributing to the growing demand for last-mile delivery solutions, requiring a larger fleet of smaller trucks. Moreover, the region’s push towards sustainability has increased interest in electric trucks, as companies seek to reduce their environmental footprint. Agricultural growth in the Southern states also plays a role in the demand for trucks to transport goods from rural to urban areas. The increasing consumption of goods and raw materials for industries like textiles, electronics, and automobiles is driving the need for heavy-duty trucks for long-distance freight movement. With the improvement in infrastructure, favorable government policies, and growing industrial and agricultural activities, the Southern region is expected to see a continued rise in the adoption of commercial vehicles in the near future.

Major Market Players Operating in India Truck Market Are:

• Tata Motors Limited
• Ashok Leyland Limited
• Mahindra & Mahindra Limited
• Volvo India Private Limited
• Daimler India Commercial Vehicles Pvt. Ltd.
• Scania Commercial Vehicles India Pvt. Ltd.
• Eicher Motors Limited
• MAN Trucks India Pvt. Ltd.
• SML Isuzu Limited
• Piaggio Vehicles Private Limited

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The India Truck Market is witnessing steady growth, driven by increasing demand for efficient and reliable transportation solutions. Trucks play a vital role in ensuring the movement of goods across various industries, including agriculture, manufacturing, and e-commerce. As infrastructure development continues, there is a growing need for advanced trucks that can meet the demands of both short and long-distance transportation. With the rising focus on sustainability and environmental concerns, manufacturers are innovating by introducing trucks with enhanced fuel efficiency, lower emissions, and the integration of alternative fuel technologies like electric and CNG-powered trucks. As urbanization accelerates and supply chain demands evolve, there is a shift towards smaller, more agile trucks for last-mile delivery", According to Mr. Karan Chechi, Research Director of TechSci Research, an India-based research management consulting firm, these trends are poised to drive significant market growth.

“India Truck Market By Vehicle Type (Light Duty Truck, Medium Duty Truck, Heavy Duty Truck), By Propulsion (ICE, Electric), By Class (Class 1, Class 2, Class 3, Class 4, Class 5, Class 6, Class 7, Class 8), By Region, Competition, Forecast & Opportunities, 2021-2031F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the India Truck Market.

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