Profit Margins in Trucking: Breaking Down the Numbers for 2025

In 2025, the Indian trucking industry continues to play an extremely important role in domestic logistics. From transporting various agricultural goods across the country to enabling e-commerce product deliveries in tier-2 cities, trucks carry more than 60% of India’s freight volume. But despite this critical role they play, most transporters are under extreme pressure. Rising fuel prices, unpredictable toll expenses, driver shortages, and regulatory barriers are narrowing the already small profit margins they have.

Knowing how the funds flow in the trucking industry is equally critical to owners, operators, and investors. This article deconstructs the most critical cost factors and revenue drivers influencing trucking profitability in India today.

Actual Revenue on Indian Roads

The revenue in the Indian trucking industry relies primarily on three key variables: freight rates, trip frequency, and utilisation of the vehicles. For 2025, freight rates have seen a small growth, particularly for the routes joining the southern and western states. For instance, per-kilometre rates between ₹22 and ₹32 are in place based on factors such as cargo type, route characteristics, and demand.

But these figures only tell half of the story. What matters more is the number of productive kilometers a truck is able to cover in a day. Delays caused by traffic jams, toll booths, border crossings, and logistical inefficiencies tend to affect the average daily movement, particularly on inter-state highways. And if a truck comes back empty — a frequent bane for independent operators — profit gets even smaller.

What's Narrowing the Margins Down?

The running cost of a commercial vehicle in India has constantly been increasing year on year. Out of all the running costs, fuel is still the largest. With the price of diesel between ₹95 to ₹100 per litre in majorly all of the states, and with an average mileage of 3.5 to 4.5 km per litre for heavy commercial vehicles, fuel alone makes up more than 40% towards the running cost of a truck.

Driver salaries are another factor. Experienced long-distance drivers in 2025 are being paid ₹18,000 to ₹25,000 per month, which does not include halting and meal allowances. Because of the worsening driver shortage and increased demand for punctual deliveries, salaries will likely increase even more.

Other costs include tolls, vehicle maintenance, tyre replacements, insurance, and RTO charges. Informal payments to checkpoint officials or renewal of permits also affect many transporters, which are tough to estimate or manage.

The Average Cost Per Kilometre in 2025

For a maintained heavy-duty truck, the kilometre cost today ranges from ₹18.5 to ₹22.8, depending on vehicle age, terrain, and utilisation. Here's a quick summary of where the money goes:

• Fuel: ₹10.5 – ₹12.0/km
• Driver & Helper Wages: ₹2.5 – ₹3.0/km
• Toll & State Entry Fees: ₹3.5 – ₹5.0/km
• Maintenance & Tyres: ₹1.5 – ₹2.0/km
• Insurance & Fixed Overheads: ₹0.5 – ₹0.8/km

Operators that are unable to pick up backloads effectively double the cost per kilometre delivered, particularly for longer runs.

Profit Margins: A Thin Margin

After accounting for all major costs, net profit margins for most Indian truck operators are currently ranging from 6% to 12%. Large fleet owners, who often get bulk fuel discounts, route planning software, and better load distribution, manage to get slightly better margins. But for small fleet owners or solo-truck owners, profits typically are below 5%, especially in the off-season or when market demand is weak.

Margins tend to be the lowest in highly competitive fields such as FMCG distribution, general cargo, or construction materials, where freight rates are aggressively negotiated.

In spite of the barriers, intelligent transporters are managing to retain — and even expand — their margins. Digital change has been a blessing. Most fleets are using fleet management software, GPS and route analytics to minimize idle time, fuel consumption, and unplanned stops.

Another trend on the rise is the shift  towards alternative fuels. Electric and LNG-powered trucks are being tested on short-distance urban hauls, with up to 30% cost savings demonstrated in some pilots.

Furthermore, maintenance timetables and bulk tyre buying contracts are making the overhead costs cheaper for larger players. In the future, operators who spend money on driver training and retention schemes may end up saving on rehire and retraining costs — an indirect but important cost that plays a role.

Conclusion

As India's economy grows and initiatives like Make in India and National Logistics Policy (NLP) become reality, demand for trucking will only keep on increasing. So too will competition and regulation. Profitability in trucking's future isn't about setting higher prices — it's about spending more but intelligently. That means understanding your cost-per-kilometre, organizing return trips, taking care of trucks, and adopting new technology that supports data-driven decisions is going to be a factor playing a major role. 

91Trucks is the place to go for all things commercial vehicles. If you need a new or used truck for your business, check it out. We have everything you need, from detailed reviews and exact specs to the best deals that fit your business needs. Stay up to date on the latest news, analysis, and stories from the business.

Follow us on Facebook, Instagram, and LinkedIn, and subscribe to our YouTube channel to get the latest news and videos from experts!

Read More

1. Truck Driver Health and Wellness: Addressing the Hidden Crisis on Indian Roads
2. How to Start a Trucking Business in India: Step-by-Step Guide