All new medium and heavy trucks manufactured and sold in India from June 8 must have air-conditioned cabins under a government notification issued a year-and-a-half ago to enhance driver comfort and reduce fatigue.
Some truck makers have responded with model upgrades and a one-time price hike of 1-2.5per cent , depending on the variant and application, while others are in the process of doing so. Industry experts and analysts said the price rise could hurt new truck sales in the near term, but help improve driver productivity and reduce accidents. Also, demand for used trucks may increase in the medium term.
Tata Motors, the market leader, has rolled out AC cabins across its medium and heavy truck range, said Rajesh Kaul, vice president and business head, trucks at Tata Motors Commercial Vehicles.
While ACs may reduce mileage by 2-5per cent , truck makers said this could be managed with better driver practices and telematics. Kaul said the company’s higher horsepower trucks come with features aimed at maximising fuel economy and minimising total cost of ownership.
Rahul Garg, founder and chief executive of B2B supply chain and logistics platform Moglix, said the regulation represents a key shift in the sector. “It puts the well-being of drivers at the centre of India’s logistics transformation. While it brings short-term cost adjustments, the long-term benefits in safety, comfort and efficiency are significant,” he said. “Beyond this one-time adjustment, we don’t foresee successive price hikes as competitiveness is crucial.”
Volvo Eicher Commercial Vehicles said the cost impact would vary depending on truck configuration. “Truck sales are linked to the broader economy, and we expect positive momentum. With RBI cutting rates by 50 basis points (on Friday), financing will ease,” said a VECV spokesperson.
Truck sales declined to 307,491 units in FY25 from 320,244 units the previous year, according to the Society of Indian Automobile Manufacturers. The drop was attributed to a high base of the previous years and a temporary slowdown in infrastructure activity due to the general elections in the first quarter of the fiscal year.
Shriram Finance executive vice chairman Umesh Revankar said the regulation could drive short-term demand for used trucks and increase freight rates.
Fleet operators say the move is welcome but not sufficient. “There’s more to driver comfort than just AC cabins,” said Balmalkit Singh of Bal Roadlines. “Drivers still step out into extreme heat and often rest in poorly equipped areas. More needs to be done.”
