Indian Truck Market and Product Analysis

Publish Date : May, 2020

Lately, the Indian Truck industry has made measurable changes in GVW, rated payloads, regulations, Driveline up-gradations, embracing new technologies, and launched a new product series of Rigid Haulage, Tractor-trailer, and Tipper.

Our new report disclosed all variations and their impact on Indian Truck Industry. For which, we analyzed more than 300 truck models from 2008 and their sales pattern, specifications and features, Product application, Product position by mapping them with customer needs, and future trends. The report shall give you an insight into the complete MAN truck strategy in India and what lessons can be acquired from them.

In the early days of 2020, more than 250 models were available in Indian Truck Industry compared to FY 2013 where only 200 models existed. In every segment, there are many sub-segments and many varied technical parameters. Tata Motors has maximum Truck models and variants to satisfy customer requirements of small, medium, and large fleet truck owners and existing buyers.

Tracing the Indian truck market for over 15 years, we’ve noticed that the market is declining by 31% in FY 2020. Regrettably, the market declined after steady growth during FY 2015 and FY 2019, and thus, the market size was 6,32,062 units in FY2020. This is due to the fact that weaker demand in the second half of the FY 2019 drove a liquidity crunch. Though there was a hope that in FY 2021 Indian truck market might revive, COVID 19 has wrecked it. Thus, the waiting period for revival seems to last longer than one could expect. Indeed, the Indian truck industry began showing progress in Q4 FY 2020; but now, there will be a deep decline in the first quarter of FY 2021.

Indian Truck Market Size and Outlook

Tata Motors had an influential market share around 43% and only major OEMs lost their 17% share between FY 2012 to FY 2020. Mahindra and Ashok Leyland are second and third largest players with 31% and 15% respectively in the Indian Truck Industry and Eicher remained in the fourth position with a 5% market share.

Indian Truck OEM Market Share FY 2020

The heavy-Duty truck segment’s share declined by 3%, Mini Truck by 7%; having said that, Pick up segment’s share increased by 10% during FY 2012 and FY 2010. The CAGR of HD Truck segment was 24%, LDT – 0.3%, MDT 2%, Mini Truck -1%, and Pickup segment and truck industry registered a 4% growth between FY 2012 to FY 2019; but, the CAGR between FY 2012 and FY 2020 in HDT segment was -7%, LDT -4%, -3%, Mini Truck -4%, Pick up 10% and Truck Industry registered -1%.

ACG has categorized the fleet owners in India into five viz, Single Fleet Owner, Small Fleet Owner, Medium Fleet Owner, Large Fleet Owner, and Very large or Corporate fleet owners. Every fleet owner has got their own hindrances and challenges. This detailed report will unveil the facts and predictions on how COVID 19 will impact each fleet owner.

Truck Fleet owner segment, key models and Price range and Truck segment

After COVID 19, it will take time to generate sales inquiries, replacement demands from Small, Medium, and Large fleet owners for both the haulage and the Tipper segment will be high, and the infrastructure investments will be hindered for the time being. The prime challenge after COVID19 might be the dealership viability and OEMs profitability.

The possibility of picking the demand of the Tipper segment is relatively less; let’s say for the next 2 to 3 months Tipper demand can increase beyond Q3 FY 2021.

Obtaining Investment to buy trucks plays an important role in converting sales inquiry into actual sales. Most of the OEMs like Tata Motors, BharatBenz, Ashok Leyland had signed the strategic financing agreement with banks and NBFCs.

The IMD had announced that the 2020 season follows an unexpected super bumper monsoon of the previous year and that delivered rainfall of 110 percent above the long-period average (LPA). Thus, the retail segment demand is relatively slow compared to corporate and large fleet owners.

Tata Motors has generously launched Saarthi Aaram Kendra for truck drivers to connect with truck drivers. A few other independent non-Automotive companies also took this initiative to serve such assistance for truck drivers on the highway. It offers amenities like a driver rest area, canteen/Dhaba, clean washrooms, vehicle servicing facility, secured parking, and driver training room, and much more.

Likewise, Ashok Leyland took a similar kind of initiative with Apollo Tyre to set a healthcare facility for drivers. It began with the largest Tractor Trailer Hub in Namakkal. The company had already established 31 such centers.

Competitor Landscape: Heavy Duty Truck:

Among Heavy Duty Truck Segments, Tata Motors lost a 9% market share during FY 2012 and FY 2020; but, since FY 2018, the company is gaining its market share year on year. Tata Motors’ sales volume declined by 50% in the last 9 years. Its closest competitor Ashok Leyland gained an 8% market share but it lost a 4% market share in the last 3 years. Eicher launched a new product range in the Heavy Duty Truck (HDT) segment to capture a decent market share in this segment. Eicher JV with Volvo also helped to gain market share in the HDT segment by providing Engine technology. Mahindra and Eicher took 9 years to increase market share in the HDT segment.

Tractor Trailer (TT) :

One of the most impacted segments during FY 2019 and FY 2020 is undoubtedly the tractor-trailer. The Tractor Trailer market declined by 60% in a single year.

Indian Tractor Trailer Market Analysis

Ashok Leyland doubled its market share from FY 2012 to FY 2020. Tata Motors lost half of its market share in the same period. Mahindra and Eicher also increased by 2%. There are 5 sub-segments in the TT and our detailed report provides an analysis of all 5 sub-segments of the same.

Medium-Duty Truck (MDT) segment:

This segment isn’t any exception for Tata Motors. It lost nearly 7% of its market share in the last 9 years. Eicher is the leading player in this segment with a 34% market share. Ashok Leyland’s performance is the best, for it has increased its market share double the time it registered between FY 2012 to FY 2020. Also, Mahindra launched its new product range in this segment during 2018.

Light Duty Truck (LDT) segment:

In FY 2012, Tata Motors managed to hold a 70% market share; but in FY 2020, it lost 15% of its market share. Eicher’s product suitability and position have helped them in raising their market share by 12% from FY 2012 to FY 2020. Ashok Leyland started to target this segment in FY 2014 and it reached a 5% market share in this segment. Mahindra became a weak player in this segment due to the unavailability of the product range.

Pickup Truck Segment:

The pickup truck segment is the fastest-growing sub-segment of the Indian Truck Industry. The CAGR of this segment is 10% during FY 2012 and FY 2020. Mahindra is a market leader and so their sales are triple the times the second largest player. However, Mahindra had more than 60% of its market share in the last 9 years and meanwhile, Ashok Leyland overhauled Tata Motors in FY 2020.

Mini Truck Segment:

Mini Truck remained as the largest sub-segment. Tata Motors, being the leader of this segment, lost a 7% market share in the last 9 years. Meanwhile, Maruti turned out to be a prominent player in this segment after launching the product in FY 2017. In just 4 years it gained a 12% market share.

Product Strategy and Product Portfolio:

Indian Truck Portfolio Analysis

Tata Motors have launched the Ultra T.7 Electric truck Intra; Ultra, and updated Prima product range are the new product portfolio of Tata Motors that shall be grouped under light and heavy truck segment.

These new carriers come with a unique style & look with mild robustness and toughness. Also, they have launched the petrol version of its flagship model of TATA ACE Gold enabling us to compete with Maruti Suzuki carry. All 3 product ranges are considered a bit premium compared to that of the LPT product series.

Mahindra Truck & Bus has launched a new Model -BLAZO X 49 that has a long haulage USP and gives better mileage. FURIO (BS-VI) is yet another product range for 5 to 18T GVW segment with multiple variants planned to be launched in the coming months. They recently entered this segment and have an effective presence in Mumbai, Delhi, Gujarat, Rajasthan, West Bengal, Himachal Pradesh, Jammu and Kashmir, and in the NorthEast region.

The company’s product strategy is to minimize the changes between BS-IV and BS-VI trucks to keep it light among after-sales service. However, at the Mahindra dealership, the workers need better training facilities for BS-VI compliant trucks.

Furthermore, Mahindra is also extending its service touchpoints on highways after successfully creating multiple touchpoints on the busiest Mumbai-Delhi highway which catered nearly 35% of the truck movement in India.

Eicher launched the new truck range in LMD space, with a new Pro 2000 series along with Eicher Live telematics solution for the business owners to manage trips, fuel, and uptime of a range of vehicles.

Eicher launched two heavy truck models as well viz, Eicher Pro 6049, and Eicher 6049 in the HDT segment during 2018. Those trucks possess Volvo Group Engine Management System EMS 3.0 for better fuel efficiency. Nevertheless, to generate 180 to 350 HP, the 5 and 8-liter engines require more power ranging.

BharatBenz has launched 52 variants in 2018 and is planning to launch 42 new models with variants. The OM926 is a widely adopted engine among the Truck segment. Their maintenance cost is relatively less and that depends purely on the type of Model, Application, and driver. However, BharatBenz is focusing on giving better product support to its customers by increasing 27% touchpoints by the end of 2020.

During those times when European OEMs entered Indian Truck foray, they positioned trucks with 28% and 56% better horsepower and 5 to 20% more price range. Later, the Indian market OEMs like BharatBenz and MAN trucks modified their product portfolio, Segment entry, and pricing strategy.

However, in the current portfolio, Indian OEMs have an equivalent product range with similar specs and features. Now, most of the Trucks in the HDT segment are about 200HP and more.

Our detailed report provides an in-depth analysis of each product for every segment like, “what are the advantages of Customers and OEMs?” for which we included Transmission of Eaton, ZF, Allison, and in-house product of Mercedes, FUSO, Cummins engine and Axle of Meritor and Dana.

Meanwhile, among the Mini Truck segment, Maruti, Tata Motors, and Mahindra positioned their product in a different product zone with few overlaps. Super carry, Mahindra Supro, and Tata ACE are some leading mini Trucks in this segment. Under the Pick-up segment, Isuzu seems to have maximum power and torque compared to its competitors like Ashok Leyland DOST, and Bolero.

Under the LDT segment, Eicher Motor has a wide range of products like PRO 2050, 2059, SML Isuzu with Sartaj series, the leading product of Tata Motors LPT, SFC 709, and Tata Ultra series. The segment also has got some CNG fuel option products. However, under the MDT segment, Tata LPT, LPK, & Tata Ultra and Ashok Leyland BOSS, Ecomet has a good mix of product ranges that embrace wide trucks applications, and other features. Indeed, Mahindra Truck entered this segment along with Furio with an average price of 17.8 lacs in Jan 2019 with the AMC option.

Indian HDT Truck market is dominating the industry by 180hp engines with 6X2, 6X4, and 8X2 axle configurations among Tipper and Rigid Haulage segments. When the 31T segment picked up, Rigid Haulage with 8X2 (along with lift axle) and Tipper with 8X4 axle arrangement dropped. However, now the mixed product portfolio is available for different Truck applications with 10X2 and 10X4 axle drives. Besides, the Telematic solution of major OEMs offers both the Medium and Heavy-Duty truck ranges. Nevertheless, these features are used majorly by medium and large truck fleet owners to track the drivers.

Under the HDT Rigid Haulage segment, Eicher launched a new product range with an AMT option also to increase their market share. But, Tata Motors has set its footprint already – Prima truck has a premium position in this segment. BharatBenz also has 2823R, 1415RE, 1617, and 3523R product portfolios. There are a few products with lift axles in the higher tonnage division. Our detailed report provides a “model to model competitive analysis and position”. Ecomet, BOSS, LPT, BLAZO X, Eicher PRO series, Tata Prima and Signa are some influential product platforms. Lately, the HD Tipper product range got upgraded by Tata Motors, Eicher, Ashok Leyland, and BharatBenz. Available Tipper range is anywhere between 200hp and 400hp.

Being the leading player of the premium HD truck segment, Volvo Tipper controls maximum market share in mining applications for its eminent performance and after-sales support. More than 55 products are available in this segment. Also, Box tipper, Rock body, hard rock body models are available in this segment for On-road and off-road applications.

Initially, Tata Motors launched its Prima Tipper with 380 hp (with Allison Automatic Transmission) to top the Premium Tipper segment. But now, the whole prime range is optimized – the HD segment has a maximum share in the tipper segment with more than 16T GVW. Its purchase criteria are different from the Rigid Haulage and Tractor-Trailer segment. Once, MAN launched their major products in the combination of 220 and 280hp – 4X2, 6X4, 6X2, 8X4 drive in Tipper, and Tractor-Trailer/ODC.

Ashok Leyland launched a BS-VI compliance product range with a combination of proven iEGR technology and an SCR system. Eicher Trucks also launched a new product range with BS-VI emission norms. The company is adopting EATS technology and SCR solution.

Tractor-Trailer Applications and Product Portfolio:

It’s primarily for long-distance, bulk, and heavy transportation goods. Driving comfort, Cabin Space, Mileage, Telematics, and highway product support together define the success of this segment. Also, Tata Motors has a maximum product range in Signa and Prima product series. Eicher PRO 6055, BharatBenz 5028TT, Ashok Leyland 4620, BLAZO 46/50/55, Volvo FM, and Scania G series are some product series models in this segment.

Truck Pricing Analysis:

We are tracking Model wise pricing trends in the Indian Commercial vehicle market from 2008. ACG has analyzed more than 10,000 truck variants from FY 2011. A few quick points- In 1976 Tata Motors truck was 47,000 INR; the Tractor segments’ average price registered 12% to 25% during 2011 and 2019.

The price of Rigid Haulage, Tipper, and Special Application Truck increased by 30% depending on the Model and Brand. The price changes among Mini Truck models are increased by 12% to 20% in the last 6 years. A similar price trend has been recorded in Pick up, LDT, Tipper, Tractor Trailer, 16.2T, 28T, 37T, 40.2T, 49T, 50T, and 55T GVW segments.

Customer segment:

ACG defined 5 customer segments in the Indian Truck Industry. Each segment belongs to a specific Truck price, specs, and features requirement. The new European players focused on large fleet owners of the South and West regions. One of the key challenges BharatBenz faces is “discounts”. When medium and large fleet owners decide to buy more than 10 trucks, discounts will make a big impact on the final price of the trucks.

Indian Truck Market and Product Analysis report Highlights:

  • Indian Truck Market Size in Volume and Value before and after discount
  • Growth Opportunity in the Indian Truck Market
  • Entry Strategy into Indian Truck Market
  • Critical Truck Model wise Analysis
  • Each segment-wise price, growth, market size, OEM market share, Trend, Forecast and major product presence
  • Fleet owners mapping with Type of Truck models
  • Product grid analysis
  • Truck Application wise analysis
  • Model wise Price trend analysis
  • OEM Strategy Analysis and Target customer
  • The customer buying process and key parameters

Please contact us to get the TOC of the report and Price.

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