Toll collections hit roadblock as traffic tapers due to auto slowdown

As sales for automobiles dip, the number of vehicles crossing India’s highway toll gates is also slowing down. Industry officials and experts suggest traffic and toll collection growth seen in the last few years has now hit a block.

While traffic and toll collection will take a hit in FY20, toll rates may also not rise much in FY21 owing to a lower wholesale price index (WPI).

“The secular growth in traffic witnessed in the last few years has been impacted due to the economic slowdown to some extent,” said KP Maheshwari, chief executive officer, Adani Transport.

According to ICRA research, toll collections may witness mid-single digit growth in FY2020.