What the Truck? Estimating Truck Cost per Kilometre in India

unconventional

India-specific
Set in India; the figures and context are India’s.

What this case is about

Your client is a company considering expansion into India's transportation business. It wants you to estimate the cost of running a truck per kilometre in India. What would you estimate, and what assumptions would you use?

Objective

Estimate the truck's total running cost per kilometre by separating fuel cost from annualized vehicle and operating costs, and state the assumptions driving the result.

Skills this case tests

Structuring the problem
Working the numbers
Judgement and recommendation