24 July,2026 12:52 PM IST | Mumbai | mid-day online correspondent
Despite paying substantial toll charges, transporters continue to face inadequate highway infrastructure, AIMTC said. Representational Pic
The All India Motor Transport Congress (AIMTC) has warned that India's small road transport operators (SRTOs) and self-driving truck owners are facing an unprecedented financial crisis due to rising operational costs, mounting compliance requirements and stagnant freight rates.
In a statement issued on Friday, Bal Malkit Singh, Advisor and Former President of AIMTC, said thousands of small transporters are struggling to stay afloat, warning that any large-scale shutdown of the sector could severely disrupt India's supply chain.
"The small transporter is not asking for subsidies or special treatment. We are only seeking a fair, viable and sustainable business environment. If immediate corrective measures are not taken, thousands of small transport operators and self-driving truck owners will be forced to shut down, severely impacting India's supply chain and economy," Singh said.
According to AIMTC, operating commercial vehicles has become increasingly expensive over the past few years, with diesel accounting for nearly 55-60 per cent of operating costs. Besides fuel prices, transporters are also grappling with rising toll charges, tyre prices, insurance premiums, AdBlue and lubricant costs, spare parts, vehicle maintenance, driver wages, loan EMIs, statutory compliances and administrative expenses.
Despite the steady increase in costs, freight rates have remained largely unchanged, making the business financially unsustainable for many operators.
"No industry can survive when costs continue to rise while revenues remain stagnant. The transport industry cannot operate at a loss indefinitely," Singh said.
The transport body also expressed concern over what it described as excessive compliance requirements, stating that multiple regulations have increased both operational complexity and costs for transporters.
While supporting digital governance, AIMTC said compliance systems should reduce paperwork and simplify procedures instead of creating additional financial burdens.
AIMTC alleged that the electronic challan system was being misused, claiming transporters had reported arbitrary penalties, multiple challans for the same violation and revenue-driven enforcement.
The association also opposed the mandatory installation of Vehicle Location Tracking Devices (VLTDs) in goods vehicles, arguing that the requirement, originally introduced for passenger safety, has imposed additional costs without delivering proportional benefits.
It further claimed that technical glitches in integrating VLTDs with the VAHAN portal have resulted in prolonged vehicle downtime, causing financial losses for transporters.
Despite paying substantial toll charges, transporters continue to face inadequate highway infrastructure, AIMTC said.
The organisation highlighted the lack of safe parking spaces, clean toilets, resting facilities, hygienic food courts and emergency services for truck drivers on national highways.
The transport body has urged the Centre and state governments to rationalise toll charges, simplify compliance norms, prevent misuse of the e-challan system, withdraw the mandatory VLTD requirement for goods vehicles, resolve VAHAN-VLTD integration issues, improve highway infrastructure and introduce a scientific, cost-based freight rate mechanism that reflects actual operating costs.
Calling road transport the backbone of India's economy, Singh said every essential commodity reaches consumers through trucks and warned that the financial collapse of small transporters would have far-reaching consequences.
"The question today is not whether transporters can survive another increase in costs. The real question is how long they can continue carrying the nation's economy on their shoulders without receiving a fair return. The time for policy intervention is now, before it is too late," he said.
