Tag Archives: Indian commercial vehicle industry trends & outlook 2019

This report Importance of small commercial vehicles in last-mile delivery focus on the opportunities the last mile delivery could provide, and common challenges India faces for the same. The current and most popular topic among retailers is last-mile logistics. This is classified into three major sectors, viz. E-commerce, Retail, and bulk goods delivery. These three are considered the prime influencers of last-mile delivery. We mapped these three sectors to the available trucks like Mini, pickup, Three Wheeler, and other electric vehicles.

Additionally, this report will reveal the key parameters that Autobei Consulting Group utilizes to analyze value propositions and why manufacturers, Suppliers, and other logistic companies seek ACG to find the analytics, right marketing strategy, and segment analysis. This segmented analysis of Small commercial vehicles will reveal why there’s a greater possibility for automotive’s financial growth in India.

The E-commerce business is yet functioning on the conventional model of a communication system. Thus, arise the cause for one common communication platform between a customer and fleet operator. We carried out a survey on this and it’s been perceived that 80% of the fleet operators are up for it – to use an application for daily business purposes. One of the reasons why this hasn’t been in practice is ’cause fleet utilization is less than 30%.

Indian Commercial vehicle market Analysis and Forecast 2024

Small or light commercial vehicles are considered to be the largest segment in the automotive industry that encompass commercial vehicles. To be precise, SCV contributes 73% of the total Commercial vehicle sales in FY2019. The compound annual growth rate is computed as a 10% increase from FY2015 to FY2019 and is further expected to raise the CAGR by 8% in the next five years. The market size of the small commercial vehicle segment accounts for USD 3.5 billion in FY2015 and USD around USD 5.2 Billion in FY2019.

Similarly, Small commercial vehicle’s cargo segment’s share has been increased from 47% to 52% while on the other hand, the passenger segment’s share got dropped from 53% to 48% during the period FY2015 and FY2019. Thus, at the end of the year, Cargo is reckoned as the biggest segment that accounted for around 50% of the total market sales in FY2019.

Bajaj Auto, Mahindra, Tata Motors, and Piaggio are the top players in the SCV segment.

SCV segment Share FY 2019

Considering all aspects of logistic vehicles, we’ve drawn the conclusion that three-wheeler goods vehicles will be the best choice for the retail business. The goods transport charge shall begin from 100 – 200 rupees and since the maintenance cost is low for three-wheelers, this has grabbed the attention of consumers in the retail business. It’s believed that these will rule the retail business for its highly feasible for small loads and have got better mileage and a reasonable yet affordable price. One major advantage of utilizing three-wheelers for last-mile delivery is that most of the drivers are owners of their vehicles. This affirms the success of last-mile delivery. On average, it’s observed that a three-wheeler load vehicle would run an average of 50 kilometers and thus tentatively monthly revenue would account for 15,000 to 20,000 rupees. Currently, the 3W cargo is having just 30% of fleet utilization as per our study.

SCV passenger and SCV Cargo segment share trend

Besides, four-wheeler load vehicles are highly suitable for bulk transportation in its category and long-distance transportation of goods. The average daily distance of four-wheelers in the last mile delivery is around 100 kilometers. The owner of the vehicles would mostly be those who run small businesses. In the last three years, Maruti Super carry raised its share by 10% with just a single vehicle and has tied up mostly small-scale business dealers. It’s expected that Maruti Super carry will acquire a 14% market share anytime soon.

Initially, Maruti offered a 12-inch tire in Super carry. But, this hadn’t pleased the mini truck consumers and eventually, they were destined to replace them every so often. The company identified the issues and began to offer a 13-inch tire.

Maruti Suzuki Super carry Product strategy

The appropriate competitor of super carry would be Tata ACE. These vehicles have satisfactory consumers and people prefer them for the driving comfort it proffers.

SCV 4W cargo Last mile delivery Product position

Well, the market dynamics and product availability played a significant role in grabbing a larger portion of segment shares. The large pickups say 2 -3.5T of small commercial vehicle’s cargo segment has managed to grab 54% of the total SCV’s segment shares. On the other hand, passenger vehicles of the SCV segment are reckoned as the highly regulated segment and three-wheelers are reckoned as their tough competitors.

Pickup and Mini Truck segment share

Tata Motors preside over the market in the sub 2T truck category and the SCV Passenger segment as well and the wonders will never cease; Maruti is leading the industry and has pushed the Tata and Mahindra back. Maruti super carry has managed to attract the consumers in India.

Indian Mini Truck Segment Analysis

Indian consumers are mainly opting the mini truck for the overall super carry’s performance is considered as the prime value proposition. To analyze the value proposition in-depth like Price, Discount, Payload, Maintenance cost, number of trips, After Sales Support and others, ACG makes use of a variety of key parameters. The new launch Tata Intra, and DOST performance together inhibit the growth of other light commercial vehicles especially the Mahindra cargo segment (2-3.5T category). However, Tata Intra, fortunately, has managed to attract the Bolero Maxi Truck customers and Ashok Leyland Dost customers (in 2-3.5T category).

Pickup Truck OEM Market share

Tata motors have lost 17% of their market share in the past 5 years, whereas Mahindra gained 11% of its share. No matter what, Mahindra Bolero is the first choice of consumers in the pickup segment. Nevertheless, it has lost 9% of its market share from FY2015 to FY2019 due to the other brands, viz DOST, Intra, and Isuzu and it seem that Tata is aggressively trying to grab its market share from Mahindra Bolero.

Autobei Consulting group primarily helps the manufacturers and Suppliers to carry out the market assessment, rural sales analysis, macroeconomic analysis and indeed we make detailed Segment analysis.

Report Highlights:

  • Small Commercial Vehicle Market Size (In Volume & Value), Trend and Forecast 2024
  • Last-mile delivery market analysis
  • Passenger and Goods vehicle Market Analysis
  • Fleet operators types, Business, Challenges, and Opportunities
  • Technology (IoT, Delivery App) Analysis and its acceptance
  • Application of the vehicle
  • Key Models and Price, Sales, Features, and Specs
  • Type of customer in SCV segment
  • Fleet owners Survey
  • Purchase Pattern Analysis
  • Product Portfolio, Product position, and Brand Strategy
  • After Sales Analysis – Model wise maintenance cost
  • Electric Vehicle penetration analysis in SCV segment

ACG analytics expects domestic commercial vehicle (CV) sales to rise ~22% in fiscal 2019.

The forecast is divided into Sales and Production (Goods & Passenger carrier) segment. The segment further divided into OEMs and Model level along with key technical specs and product features.

Indian commercial Vehicle Industry and outlook 2019

Major Industry Drivers are:

  • National road development
  • Pradhan Mantri Awas Yojna
  • GDP growth
  • Some new pre-election announcement
  • The new product range of higher GVW/payload
  • E-commerce sector growth
  • Regulation

BS VI Norms impact on CV Industry:

  • BS VI impact on demand
  • The cost impact on vehicle
  • The function of SCR/DOC and DPF
  • Emission Control through Engine Design
  • Technology impact of BS VI
  • Other aggregate and cost impact
  • Global Strategy of using SCR and EGR for various Norms
  • Subsidiaries and tie-ups for after treatment
  • Supplier Market share
  • BS VI regulation and history of emission norms

Key highlights of the report:

  • Short-term demand
  • Medium Term Demand
  • Long-term demand
  • Competition Analysis & players Strategy Analysis
  • HCV demand Analysis
  • MCV demand Analysis
  • LCV demand Analysis
  • SCV demand Analysis
  • Bus demand Analysis – Application wise
  • Cost variables
  • Margin Analysis
  • Regulations Impact Analysis
  • Brand Position
  • Brand engagement
  • The relationship between Brand perception, and Application
  • Changing buyers behavior
  • Top purchase criteria
  • After sales – Maintenance cost Analysis
  • Forecast Value and Volumes
  • Vehicle type
  • Engine type
  • GVW wise
  • Transmission type
  • Fuel injection type
  • Vehicle Financing Type and issues
  • Import and Export Trend and Forecast
  • Model-wise Price and Discount Analysis
  • Product benchmarking and Product Portfolio
  • Customer Experience
  • Driver feedback on vehicle usage, USP and its best-suited application

Please contact us for more detail and Table of content

There are many market dynamics are going to affect the Indian LCV market. ACG analyzed regulation, Load trend, New Product development, Technology, Emission norms, Demand, Trend, Market Sentiments, Pricing factors, and other key criteria to draw the sketch of Sales and Production forecast. We analyzed the Industry challenges & Drivers. 

We have an exclusive City, Model & Brand level database. Along with numbers, Price, Engine Type, Engine Make, Warranty, GVW, Payload, Variants, Product series, Key Application, Product life cycle, Product risk rating, Product series, length, Wheelbase, Clutch Dia, Engine Power, Tyre size & Type, Type of Transmission, Transmission Make, Spare parts, Product USP of each model, Duty cycle, Macro Economy, and other key information. 

The purchase behavior is different compared to heavy commercial Commercial. Some of the purchase parameters are going to change and ACG considered those parameters in our forecast methodology.

The database is divided into two parts, Truck, and Bus. Most Popular Model of Truck and Bus based on Price, Volume and other Technical criteria. Van, Mini trucks, Pick Up, Rigid Haulage and other types of vehicles are included.

Companies included like Tata Motors Limited, Ashok Leyland Limited, Mahindra & Mahindra Limited, Eicher, BharatBenz, SML Isuzu Limited, Maruti Suzuki India Limited, Force Motors Limited, and Piaggio Vehicles Private Limited.

Following are the other keys highlight of the database:

  • Product Planning & Strategy
  • Competitor Analysis
  • Business Strategy of OEMs, Suppliers, NBFC, and other stakes holders

Sales and Forecast report are also available in other regions like Europe, Africa, NAFTA, Asia, and the Middle East. As a part of an Annual subscription package Monthly, quarterly and Yearly Forecast data is available.