The heat is quite literally on for India’s commercial vehicle sector. Starting June 8, 2025, every new medium and heavy truck sold in India must come equipped with an air-conditioned cabin. For an industry that moves the vast majority of the country’s goods, this regulatory shakeup has profound technological, economic, and human implications.
Yet, amidst early grumbles about rising costs, a quiet efficiency enhancement is underway, aiming to reconcile comfort with cost — and setting a blueprint for emerging markets worldwide.
Fuel Efficiency: The Old Achilles’ Heel
For decades, many Indian truckers have avoided factoryfitted air conditioning, primarily due to concerns about fuel consumption. Traditionally, running a truck’s AC could consume up to 5% of its total fuel use, which is a not-insignificant hit, especially for light and medium trucks where the air conditioner’s burden is heavy compared to engine output.
The upfront impact is not trivial. In addition to loss in efficiency, estimates suggest mandatory AC cabins have pushed up the cost of heavy trucks by 0.5-1%, while lighter trucks are shouldering a steeper 1.2-2% hike, reflecting the greater engineering tweaks smaller cabs require.
For fleet operators, many of whom work on wafer-thin margins, it translates to significant increase in operating costs. Some players, such as VECV, claim to have brought the fuel efficiency of ACequipped trucks “very close” to non- AC variants by embracing electronics and synchronizing the AC’s operation with the engine’s electronic control unit via ‘engine maps’.
These ‘maps’ act as sophisticated instructions, telling the engine exactly how to respond when the AC is engaged, preserving precious fuel. This was enabled by the sector’s progression to Bharat Stage 6 (BS6) emissions standards, which brought a wave of electronics. Indian truck manufacturers like Tata Motors, Ashok Leyland and Mahindra have started rolling out vehicles based on these technologies, enabling drivers to tailor performance to both cargo and AC load.
For instance, Tata’s trucks now feature idle auto-shut, reducing wasteful engine-on time when idle. Furthermore, the OEMs are using enhanced insulation in newer cabins, using advanced materials, which means lcishaless heat seeps in – reducing the AC system’s workload and cutting down energy draw.
Compressor: The Heart of the Matter
One of the innovations used by VECV is the use of scroll compressors. Unlike the old reciprocating (piston) types that draw constant power, scroll compressors are rotary devices that adjust their output to demand. This translates to lower mechanical friction, up to 92% efficiency (compared to 70-80% for reciprocating types), quieter running, and measurable improvement in fuel economy.
Currently, this advanced system is available across VECV’s light and intermediate trucks, with plans afoot to extend it to heavy-duty vehicles. Such optimization is not just an Indian phenomenon. European truck makers, too, are electrifying auxiliaries and exploring holistic vehicle energy management to keep air conditioning from draining fuel tanks.
Yet efficiency is only part of the story. For the first time, Indian trucking is set to match global standards for driver comfort. “Today, a driver is the one person who is defining your logistics efficiency,” says Sachin Agrawal, Executive VP & Head of Product Development at VECV. With better AC, VECV’s data shows long-haul mileage is up, with trucks averaging over 20,000 km a month, a remarkable jump from the industry’s historical 12,000– 13,000 km.
Trucking Beyond Borders
While Western markets have mandated air-conditioned truck cabs for years, India represents perhaps the world’s toughest proving ground: extreme climates, punishing road conditions, and cost-conscious operators. The domestic sector’s leap forward, driven by mandates and enabled by integrated electronic engineering, is an important signal for fast-growing markets in Africa, Southeast Asia, and beyond.
VECV, A JOINT venture between Sweden’s Volvo Group and India’s Eicher Motors, is sharpening its competitive edge in the country’s bustling light and medium-duty (LMD) truck market.
Eicher Trucks and Buses, VECV’s key business unit, unveiled its next-generation Eicher Pro Plus Series in July, targeting freight carriers in the ever-intensifying world of e-commerce and rapid logistics. Last year, VECV cemented its dominance with a robust 36% market share in the 5-18-ton category, moving approximately 40,000 vehicles out of an industry total of about 118,000 units.
“In the LMD category, we already have a strong presence,” said Vishal Mathur, EVP – Light & Medium Duty Trucks, VECV. “Last year, our market share in the category of 5 to 18 tons was 36%… With the Pro Plus Series, we have further added benefits or features to our customers which will help them improve their profitability.”
India’s LMD truck segment has been on a growth tear, closely tracking the nation’s logistics renaissance. The segment witnessed a marginal 8% growth during Q1FY26. The upsurge in e-commerce and the burgeoning quick commerce sector have driven demand for nimble, reliable city logistics vehicles—capable of maneuvering both: urban bylanes and improved national highways.
Besides VECV, industry stalwarts like Tata Motors, Ashok Leyland, and Mahindra & Mahindra are jostling for pole position in the battle for market share. “There is a strong demand from market load and logistics operators,” Mathur noted.
“The e-commerce segment has seen significant picking up, showing good demand. This also extends to quick commerce. These segments specifically require smaller capacity trucks (e.g., 5-7-9 tons) for city distribution and lastmile connectivity.”
Meanwhile, India’s expanding expressways and enhanced highways are tilting the scales toward higher payload vehicles in the 12 to 18-ton range, further opening avenues for customer profitability and efficiency. The sector is also producing a steady replacement cycle, as older vehicles reach the end of the line—a trend VECV is keen to capitalise on.
“Also, there is a significant replacement demand as older trucks reach the end of their lifecycle,” Mathur added. “The new range is a result of deep customer engagement and future-focused engineering. By combining industry leading vehicle productivity with features that improve driver productivity, we are offering customers a truly differentiated platform that supports both intra-city and longer-haul applications.”
As India’s logistics landscape grows quicker, and more complex, the LMD segment is likely to have many more launches and refreshments. With industry rivals and new demand cycles emerging, India’s trucking chessboard is primed for another turn.