Delhivery scales up road train services for auto and FMCG sectors

Third-party logistics provider Delhivery is making a significant investment in road trains tractor units pulling multiple trailers to revolutionize transportation for high-demand industries like automotive and Fast-Moving Consumer Goods (FMCG). The company aims to drive down operational costs while improving efficiency with this innovative approach. By increasing capacity and optimizing long-haul logistics, Delhivery believes road trains will become a key solution for handling large volumes of goods, enabling faster, more cost-effective deliveries across these sectors.

Arun Bagavathi, the network design head at Delhivery, says “FE that logistics is a low-margin business where even a 10% reduction in costs can drive transformative change”.

Bagavathi says “Global trends indicate that the biggest impact will be seen in car and two-wheeler carriers, as well as FMCG transportation”, “If we can cut shipping costs per car by 10%, it will shift from being an option to a necessity”.

Last week, Delhivery unveiled its first road train, developed in partnership with Volvo Trucks. The model features a 24-foot intermediate trailer paired with a 44-foot semi-trailer, providing a total cargo volume of 144 cubic meters-50% more than traditional semi-trailers. The Indian road ministry officially approved the use of road trains in 2020, permitting vehicles up to 25.25 meters in length. Since then, Delhivery has been testing two road train models along the Mumbai-Nagpur corridor, achieving efficiency gains of at least 10%. By the end of 2025, Delhivery plans to expand its fleet to 10 units, further extending its operations to new routes.

Bagavathi shared that Delhivery is collaborating closely with Volvo and government agencies to identify additional expressways for deploying road trains. Some of the potential routes under consideration include NCR to Lucknow via the Yamuna and Agra expressways, the Delhi-Baroda expressway, Delhi-Dehradun expressway, and the Bangalore-Chennai expressway. Delhivery is focusing on expressways due to their controlled access, absence of two-wheelers and pedestrian crossings, regulated speed limits, and dedicated lanes features that enhance safety for long-haul vehicles. In addition to expanding its road train fleet, Delhivery is also ramping up its adoption of Liquefied Natural Gas (LNG)-powered trucks as part of its commitment to sustainability.

Bagavathi says “We currently operate 20 LNG trucks and plan to add 30 more, bringing the total to 50 within the next three months”.

The company procured these trucks from Volvo in July last year, recognizing LNG as a cleaner and cost-effective alternative to diesel. “LNG helps hedge against diesel price fluctuations and supports sustainability, which is now a key factor for companies awarding logistics contracts”, he added.