AC cabins in trucks to increase operational costs by up to 4%

Aroosa Ahmed Updated - June 17, 2025 at 08:36 PM.

According to a notification from the Road Transport and Highways Ministry, all newly manufactured trucks are required to have AC cabins installed for drivers from October 2025.

Truckers have called out the rise in fuel costs as the AC cabins for drivers will hit their profits, and they plan to meet with government officials | Photo Credit: -

With the Centre mandate on Air-Conditioned (AC) cabins for drivers in all newly manufactured trucks, truck owners have flagged a rise of up to 4 per cent in operational costs. Truckers have called out the rise in fuel costs as the AC cabins for drivers will hit their profits, and they plan to meet with government officials to provide relief and extend the deadline.

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According to a notification from the Road Transport and Highways Ministry, all newly manufactured trucks are required to have AC cabins installed for drivers from October 2025.

Cost of the trucks

“The cost of the trucks is expected to go up with the AC installation. Additional fuel will be required, which will increase our operational cost. The cost of operation is expected to go up to 4 per cent and will severely impact the fleet owners. They will increase their charges to the customers, and that will, in the end, increase in cost of the product, impacting the entire value chain. The present options of Heavy Commercial Vehicle (HCV) are already overpriced. We have suggested to the government to make adequate arrangements for the drivers at the loading and unloading end to increase driver comfort,” Bal Malkit Singh, Advisor & Former President of All India Motor Transport Congress (AIMTC), told businessline.

With the mandate coming into force from October, the cost of commercial vehicles is said to increase up to 2 per cent.

Tata Motors recently introduced AC cabins across its truck ranges. The upgrade spans across the SFC, LPT, Ultra, Signa, and Prima cabins, while also extending to cowl models.

“In addition to complying with the regulatory requirements, we have leveraged this opportunity to deliver long-term value with a host of enhancements. The introduction of air-conditioned cabins and cowls marks a significant step towards building a comfortable working environment for drivers, enabling higher productivity. These upgrades, shaped by extensive customer feedback and backed by smart engineering, are designed to minimise impact on total cost of ownership, ensuring greater profitability for fleet owners,” said Rajesh Kaul, VP and Business Head – Trucks, Tata Motors Commercial Vehicles.

Indian automaker Mahindra & Mahindra (M&M) have also installed AC cabins in its newly introduced Light Commercial Vehicle (LCV) and HCVs.

“The AC installation is going to increase the fuel expense on our fleets. We operate across the country and on very low margins. With the AC operational, our profit margins will increase further,” said Vinay Kumar, a truck owner based in Maharashtra.

Published on June 17, 2025 15:06

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