Indian Commercial Vehicle Industry

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Home > Automotive > Automobiles > Commercial Vehicles > Indian Commercial Vehicle Industry

Indian Commercial Vehicle Industry

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Indian Customers Kindly Click Here Indian Commercial Vehicle Industry: Too many speed breakers to pull down the growth in this fiscal

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The commercial vehicle (CV) industry has always been linked to the countrys industrial activities and the overall GDP. Post the economic downturn the CV industry posted impressive growth of 36 percent in FY10 and 32 per cent

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in FY11. The Goods Carrier (GC) segment continues to dominate the CV market with approximate share of 88 per cent in FY11. The domestic market forms 90 per cent of the total CV market and remaining is contributed by the exports where the share has been increasing every year. The CV market is set to experience significant changes primarily with the use of hub and spoke model. By hub and spoke model, it is meant that the freight is generated from certain regional cluster which is then transported to various trucking centers or hubs spread across the country, where the goods segregated and transported across the various spokes and finally through these spokes the goods are delivered to the end consumers. It has been witnessed, though there has been a strong volume growth in the LCV segment, the tonnage growth has not been in the same line, depicting rising proportion of small commercial vehicles (SCV). While in case of HCV, it is other way round, where the growth in tonnage is higher than growth in volume terms indicating rising proportion of heavy commercial vehicles (HCVs). The key concerns for the industry continues in the form of rise in interest rates and fuel prices coupled with expected slow down in the growth levels of industrial production would affect transport operators business and may curtail the current growth levels in CV demand in short term period. CARE Research believes healthy medium to long term macro-economic outlook coupled with increase in government focus towards development of transport infrastructure would fade away short term concerns. CARE Research believes most of the domestic manufacturers along with their JVs will come out with new launches in multiple segments and use the advance technology to gain market share in this oligopolistic CV market. CARE Research foresees healthy growth of commercial vehicles in the next 5 years, LCV sales are likely to outpace the medium and heavy commercial vehicles (M&HCV) sales in terms of units and overall GC segment is estimated to grow at a faster rate as against the passenger carriers (PC) segment. CARE Research has developed a detailed statistical model that attempts to forecast the domestic commercial vehicle sales separately for goods and passenger use. The GC segment sales are forecasted on the basis of GDP growth and thereby the growth in cargo, the existing fleet capacity and its utilisation rate, while the PC segment sales are forecasted on the basis of growth in population, the per capita travel depending on the income levels and the split of travel between public and private modes of transport. Other qualitative factors like macro-economic outlook, government actions, consumer confidence, willingness of vehicle financers to finance purchases, actions of OEMs like launches, aggressiveness,sales push techniques, dealer network, etc. have also been quantitatively built in demand forecasting model. Indian Customers Kindly Click Here

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Indian Commercial Vehicle Industry

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