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The Future of Indian Commercial Vehicles Market Lies in the Small and Light Vehicles Segment Says Frost & Sullivan - Government policies and technical developments to drive the market for the coming 5 years - Automotive.Frost.com
The Future of Indian Commercial Vehicles Market Lies in the Small and Light Vehicles Segment Says Frost & Sullivan

 

PRZOOM - /newswire/ - Mumbai, India, 2012/07/30 - Government policies and technical developments to drive the market for the coming 5 years - Automotive.Frost.com.

   
 
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Economic changes in India have fuelled growth of the commercial vehicle (CV) market and other factors have helped skew the market in the favour of the small commercial vehicle (SCV) and light commercial vehicle (LCV) segments. Just entering its rapid growth phase, the SCV and LCV market in India is the fastest growing in the world and is expected to continue growing for the next 5-10 years.

New analysis from Frost & Sullivan (automotive.frost.com), Strategic Assessment of Small and Light Commercial Vehicles Market in India, finds that sales of small and light CVs in India stood at 353,620 units during 2010-11. This is expected to grow at a CAGR of 18.5 per cent for the next 5 years with sales volumes reaching a mark of 827,920 units by 2015-16. SCV goods carrier is expected to account for around 70 per cent of this volume.

The Indian CV market is polarizing towards the small and light CV segments with the market share of medium CVs (MCVs) declining. This trend is intensified by many factors. For instance, the restriction on medium and heavy CVs' entrance into metro cities has made it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW) capacities has also eaten the market share of MCVs.

However, the entrance of global CV majors into the Indian market through joint ventures with local majors is expected to make it very competitive, with many new and better products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due to their widespread network in India and increasing acquisitions abroad.

"As competition increases, it is important to strategically position products as early in their lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among other factors, has a direct impact on earnings of the organization."

Manufacturing in India is a key strength, especially for low cost trucks, which can generate a good business opportunity in growing global markets such as Mexico, Brazil, Africa and China. Domestic companies can attract high volumes as these products provide similar configurations at lower costs.

"Designing the right product to be placed strategically in the market is critical for the long-term growth of the OEMs," concluded the Analyst. "The best combination of product and partner will ensure technological superiority a better market share of the OEM."

Frost & Sullivan's Automotive and Transportation Practice recently concluded an Analyst Briefing (Webinar) on this topic, a recording of the same is available.

If you are interested in receiving a link to the recording or a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Ravinder Kaur/ Priya George, Corporate Communications, at ravinder.kaur[.]frost.com/ priyag[.]frost.com, with your full name, company name, designation, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

Strategic Assessment of Small and Light Commercial Vehicles Market in India is part of the Automotive Growth Partnership Services program, which also includes research in the following markets: 7th Annual Voice of Customer Study on Indian Logistics Industry Benchmarking and Analysis of End-user Preferences, Impact of Regulatory Trends on Commercial Vehicle Industry in India, Strategic Analysis of Passenger Vehicle Industry in India, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion | Join Us: Join our community | Subscribe: Newsletter on "the next big thing" | Register: Gain access to visionary innovation.

Strategic Assessment of Small and Light Commercial Vehicles Market in India / P61F-18

For more information, Contact:
Nimisha Iyer
Corporate Communications – South Asia & Middle East
M: +91 98200 50519 / P: +91 22 6607 2004 - E: niyer[.]frost.com.

 
 
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The Future of Indian Commercial Vehicles Market Lies in the Small and Light Vehicles Segment Says Frost & Sullivan

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