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AC mandate for trucks to pinch pockets

Business Standard

|

June 09, 2025

India's trucking sector entered a transformative phase on Sunday as the government's mandate requiring all new medium and heavy trucks to be equipped with air-conditioned driver cabins came into effect.

- SHINE JACOB & SOHINI DAS

AC mandate for trucks to pinch pockets

Commercial vehicle (CV) manufacturers have already introduced updated truck models complying with regulations, resulting in a price increase of around 2 per cent. While manufacturers emphasise long-term benefits like driver comfort and improved safety, fleet owners express concern about rising operational costs and a deepening shortage of skilled drivers.

The market reacted cautiously ahead of the mandate's rollout. Retail truck sales dipped in May as buyers awaited clarity on the rule, leading to an 11 per cent month-on-month decline and a 4 per cent drop year-on-year.

Though sales may remain subdued in the near term, the mandate is expected to enhance road safety and reduce accidents by improving working conditions for drivers.

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