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Indian Commercial Vehicles Market Boosted by the Growing Demand for Specialized Vehicles Says Frost & Sullivan - The commercial vehicles market in India is set to experience significant changes with the hub-and-spoke model of transportation
Indian Commercial Vehicles Market Boosted by the Growing Demand for Specialized Vehicles Says Frost & Sullivan

 

PRZOOM - /newswire/ - Mumbai, India, 2009/04/29 - The commercial vehicles market in India is set to experience significant changes with the hub-and-spoke model of transportation.

   
 
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With the burgeoning road infrastructure development, commercial vehicle sales will be driven by a focus on application-specific commercial vehicles such as medium and heavy commercial vehicles (M&HCVs) for long distance transportation and light commercial vehicles (LCVs), typically the sub-3.5-ton vehicles, for last mile connectivity. The sub-3.5-ton light commercial vehicle segment is poised to capture a significant share of the overall commercial vehicles market and is expected to witness intensifying competition with the entry of more participants.

New analysis from Frost & Sullivan (automotive.frost.com), Commercial Vehicles Market in India, finds that the production of commercial vehicles in India stood at 417,126 units in 2008 with sales of 384,122 units in the same year. Production, domestic sales and exports have dropped in 2008 due to economic slowdown. Primarily the 1-ton goods carrier sub-segment of the sub-3.5-ton LCV segment was driving growth.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Ravinder Kaur/ Nimisha Iyer, Corporate Communications, at ravinder.kaur[.]frost.com/ niyer[.]frost.com with your full name, company name, title, 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.

"The rising demand for specialized vehicles, due to the creation of the hub-and-spoke model is driving the commercial vehicles market in India," notes Frost & Sullivan Industry Analyst Sanjay Vasudevan. "Growth in segments such as retail and intra-city goods transportation needs has contributed to the increase in demand for sub 3.5 ton LCVs."

The National Highways Development Program (NHDP) for improving road infrastructure and national highways will also impel the demand for commercial vehicles with a significant rise in goods and passenger transport by road, due to enhanced connectivity.

Consolidation and increasing maturity of the transportation sector in India, because of improved infrastructure, has resulted in a shift in the segment sales of commercial vehicles. Truck sales are on an upswing because of fleet replacement and the establishment of a new segment of sub-1 ton. The contribution of LCV to the total demand for commercial vehicles has been increasing due to the rapidly expanding usage of smaller vehicles, intra-city transportation, and the creation of a new segment of small commercial vehicles, following the introduction of the highly successful 'Tata Ace'.

New product introduction, coupled with significant technology changes and features, will be observed in the LCV market. LCV products for executive mass transport will occupy a niche and set to experience a significant growth in demand. Accordingly, the commercial vehicles market is reorganizing its product portfolio, in consonance with the changing demand pattern. However, growth in the next three years is likely to be moderate compared to the blistering growth witnessed in the last two to three years.

"Domestic companies, with a significant three wheeled goods carrier portfolio, are anticipated to rush into the sub 3.5 ton four wheeled commercial vehicles, to keep abreast with the market trend," says Vasudevan. "Growth will be largely driven by the sub 1 ton category for last mile transport requirements. Exports of M & HCVs are also in full swing as local M&HCV manufacturers eye the overseas market to enhance their business."

Commercial Vehicles Market in India is part of the Automotive & Transportation Growth Partnership Services program, which also includes research in the following markets: Automotive Electronic Control Units Market in India, Logistics Industry Benchmarking in India, and Automotive Engineering Services Market in India. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

Commercial Vehicles Market in India / P1CD

Contact:
Tanu Chopra, Corporate Communications – Middle East
P: +91 22 4001 3437
F: +91 22 2832 4713
E: tanuc[.]frost.com.

 
 
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Indian Commercial Vehicles Market Boosted by the Growing Demand for Specialized Vehicles Says Frost & Sullivan

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