How much does it cost to run a commercial vehicle

How much does it cost to run a commercial vehicle

Owning a commercial vehicle comes with a huge cost that a fleet owner has to recover from his customers. It’s really interesting to know how even a single vehicle can contribute a large sum in the economy throughout it’s lifetime. Let us take Tata 4018 III Axle to check the facts that were found after a research by Pullerr Logistics Pvt. Ltd. From the moment it is bought till the time it is usable (assuming the ownership span as 8 years) it contributes around Rs 1.78 crore (NPV) in the economy at present values. Keeping all the fixed variables in mind like present value, inflation, depreciation, price of the vehicle, income tax, toll tax, maintenance, tax, salary of driver, interest rates etc; according to calculations a Tata 4018 III Axle will incur the final cost/km of Rs 46.39/km and cost/km/ton of Rs 1.72/km/ton. A vehicle using these costs can help in generating such high figures and contributing in the economy at a much larger scale than it seems. In conclusion we may say that the facts help us in understanding how much cost a commercial vehicle incurs which is ignored by most of the fleet owners who are quoting prices based on competition. Hopefully this will work as an eye opener for existing as well as aspiring fleet owners and help them in providing a well informed quote to their customers.

The assumptions are as follows:

  • No tyres required in first year, henceforth average 5.08 pairs of tyres/year.
  • Avg life/tyre is 70000 km, since all tyres are not wearing at the same rate, we can consider average life of tyre as 85000 km
  • Toll for Mumbai to Kolkata is apx. 6000, considering round trip per month 12000 is toll cost per month.
  • Asset cost includes horse, trolley & tyres
  • The cost may change with change in fixed variables on the right most column
  • The total cost for each parameter includes inflation as well as present value

If you want to calculate the cost for your vehicle, please request for the spreadsheet used for the above calculations. Call us at +918878677788 or email – pr@pullerr.com.

 


2 Replies to “How much does it cost to run a commercial vehicle”

  1. Good analysis by the company representatives.
    Individuals can very well determine their vehicle’s usability during the vehicle’s life.
    GST impacts may be added to see the future gain or loss.

    1. Thanks Mritunjay, appreciate your kind feedback.
      GST does have an impact on the business but since the transporters are not under the purview of GST, there is no direct impact on costing.

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