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The Major Challenges in the Truck Business in India

The road transport industry plays a crucial role in the progress of a country. In India, there is a huge demand for road goods transportation or truck transport, and many people are involved in this business.

If you are planning to start a truck business, it is better to know the challenges involved in it beforehand.

In this article, we will try to present the challenges faced in the truck business in India.

Challenges in the truck business in India

1. The Operating Expenses

Many people believe that starting a trucking business can be very profitable. However, diving into this business without conducting proper research can lead to trouble.

Therefore, it’s essential to spend some time with people already in the business before starting your own. Only then can you understand the profits, losses, and expenses involved.

Calculating Expenses:

For example, let’s say you’ve accepted a load transport of 60,000 rupees. Typically, for this amount, you’ll need to travel approximately 1,200 kilometres for both the up and down journey.

Now, for this trip, consider the following expenses(without return load):

  • 50% for diesel (fuel charge)
  • Approximately 8% for the driver’s salary, around 7,000 to 8,000 rupees
  • Tollgate charges of 2,000 rupees
  • Commission for the transport office or agent, ranging from 500 to 800 rupees
  • Loading and unloading charges, approximately 2,000 rupees
  • Traffic police/fine considerations, around 500 rupees

In addition to these, consider expenses for tyre wear and tear, oil changes, and other maintenance and repair costs for covering a distance of 1,200 kilometers.

Your monthly EMI for a truck loan can range from 45,000 to 55,000 rupees (depending on your truck).

Considering all these expenses, now calculate yourself how much income you can earn. If you get a return load it will definitely increase your profit.

Also Read:

Bus Transportation Business in India | Complete Details

2. Fluctuating fuel prices

Fuel expenses being a major expense in the truck business, there is a possibility of an impact on the business when there is a fluctuation in fuel prices.

If we increase the transport charges saying that the diesel rate has increased, it may lead to a decrease in orders. Hence, fuel price fluctuations need to be kept in mind.

3. High Competition

The Indian trucking industry is intensely competitive, characterized by a large number of operators. With thousands of trucks on the road, securing consistent, profitable work can be challenging.

Building strong networks with transport services can help ensure a steady stream of orders. Additionally, truck-booking apps are gaining traction and offer alternative ways to find work.

4. Difficulty in Finding Return Loads

Finding return loads is a major hurdle for truck businesses in India, significantly impacting profitability.

Also Read: How to start a Truck Business in India

Trucks often travel loaded one way, but struggle to secure cargo for the return trip, creating an imbalance. This challenge is particularly acute when operating in different states.

To mitigate this, knowledge about the location of transport service offices in other states can be valuable.

5. Long Working Hours and Driver Issues

For truck drivers, long hours combined with poor road conditions, inadequate rest facilities, and unhealthy eating habits can lead to health concerns like fatigue and obesity.

Accessing proper healthcare facilities can also be difficult due to their nomadic lifestyle. Additionally, extended periods away from families and friends can lead to social isolation.

6. Harassment and Security Concerns

Unfortunately, truck drivers sometimes face harassment from authorities at checkpoints or toll booths. This can involve insults, threats, derogatory language, and demands for money.

Trucks are also vulnerable to theft by criminals, leading to financial losses.

7. High Initial Investment

Entering the truck business requires a high initial investment. Purchasing a new truck in India can cost anywhere between 35 and 80 lakh rupees, which can significantly impact your finances due to loan repayments.

While used trucks offer affordability, they come with the potential for increased maintenance and repair costs, impacting overall operating expenses.

The road infrastructure in India is developing rapidly, which presents excellent opportunities for the trucking business. However, if you are aware of all the challenges involved in this business and start your business, it will not be difficult to succeed in this business.

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