Fleet Operators in India Poised for 8-10 % Revenue Growth This Fiscal
India’s commercial fleet operators are expected to post revenue growth of around 8-10% this fiscal year, according to CRISIL Ratings. The sector has maintained a strong momentum, following a compound annual growth rate (CAGR) of 12-13% over the past four years.
This rise is driven by steady demand from domestic and import-linked freight sectors, aided by infrastructure expansion and improved vehicle utilisation. Fleet utilisation levels are forecasted to reach around 86-87% this year, slightly higher than last year’s 85%.
While fuel remains the biggest cost factor, accounting for roughly 45% of operating expenses, recent regulatory changes like mandatory air-conditioned truck cabins have also pushed costs up. However, the reduction in GST on commercial vehicles from 28% to 18% has provided a breather, helping lower overall ownership costs and encouraging fleet renewal.
Capital expenditure for fleet operators is projected to rise by about 15%, reaching ₹1,200-1,300 crore this year, largely funded through long-term debt. CRISIL expects credit profiles to stay stable, supported by healthy gearing ratios below 0.5 and interest coverage above 6.5 times.
Editor’s View
This revenue upswing in the fleet segment signals good news for the tyre industry. As trucks and buses log more kilometres, tyre replacement cycles are bound to shorten. Manufacturers can anticipate stronger demand not just for heavy-duty tyres but also for value-added products focused on durability and fuel efficiency.
However, with operating costs under pressure, fleets will prioritise tyres that deliver better total cost of ownership rather than just low upfront pricing. Companies offering predictive maintenance, retreading partnerships, and on-road service support will likely gain market share in this evolving environment.
