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Budget’s focus on Tier-II and III infrastructure to lift commercial vehicle demand and logistics efficiency, says Daimler India

#Top Stories#Infrastructure#India
Last Updated : 2nd Feb, 2026
Synopsis

The continued emphasis on infrastructure development, particularly in Tier-II and Tier-III cities, in the Union Budget 2026-27 is expected to stimulate demand for commercial vehicles while improving logistics efficiency across India, according to Daimler India Commercial Vehicles. The company said the Budget reinforces India's long-term growth strategy by prioritising manufacturing, infrastructure and supply chain resilience. Key proposals, including a new dedicated freight corridor linking eastern and western industrial regions, are likely to reduce freight costs and strengthen logistics networks. Industry executives believe the policy environment created by the Budget will encourage investments and innovation within the commercial vehicle segment, supporting the transition towards a more resilient and future-ready mobility ecosystem.

The sustained thrust on infrastructure development, especially in Tier-II and Tier-III cities, outlined in the Union Budget 2026-27 is likely to drive demand for commercial vehicles and enhance logistics efficiency across the country, according to Daimler India Commercial Vehicles.


The company said the Budget, presented earlier this week, reinforces India's long-term growth narrative by placing manufacturing, infrastructure expansion and supply chain resilience at the core of economic policy. This focus is expected to have a direct bearing on the commercial vehicle industry, which is closely linked to infrastructure creation and freight movement.

Daimler India Commercial Vehicles pointed to the proposed dedicated freight corridor connecting Dankuni in West Bengal with Surat in Gujarat as a key development. Spanning several major industrial states, the corridor is expected to strengthen east-west logistics connectivity, lower freight costs and improve turnaround times for goods movement. Improved logistics efficiency, the company noted, typically translates into higher utilisation of commercial vehicles and increased replacement and expansion demand.

The Budget's broader emphasis on infrastructure spending and industrial growth is also seen as creating a favourable environment for commercial vehicle manufacturers to invest in capacity, technology and product innovation. With logistics networks expanding beyond major metros into smaller cities and regional hubs, demand for a diverse range of trucks and transport solutions is expected to rise.

Industry executives said the measures announced support India's transition towards a more resilient and future-ready mobility ecosystem. By aligning infrastructure development with manufacturing growth and supply chain strengthening, the Budget is expected to provide medium- to long-term visibility for the commercial vehicle sector.

Overall, the continued policy focus on infrastructure-led development, coupled with targeted logistics investments, is likely to support steady growth in commercial vehicle demand while improving the efficiency and competitiveness of India's freight and transport ecosystem.

Source - PTI

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