This study aims to explain the Indian Market’s scope of the Truck Industry from 2020 to 2025 after the consolidating multiple Market dynamics. The factors include regulations norms, Slowdown in demand, customer sentiments and their preferences, fluctuating vehicle prices, freight rates, new product launches, GDP drop, price inflation, China’s Coronavirus impact, segment & sub-segment shifts, investment on infrastructure, overall manufacturing growth/degrowth, mining, and logistic Industry’s impact are the factors taken into consideration. These factors are highly affecting Indian CV Industry.

Indian Truck Industry growth was declined by 17% in CY 2019 compared to that of CY 2018. Similarly, the HDT segment registered a 36%, MDT segment 13%, LDT 11%, Pick Up 7%, and Mini Truck 7% degrowth in CY 2019 compared to that of CY 2018. In the Heavy-duty segment, Tata Motors, Ashok Leyland, Mahindra, Eicher sales revenue was declined by more than 35% in just one year span. Whereas, in the LDT segment, Tata, Mahindra, Eicher, SML Isuzu faced a steep fall and witnessed double-digit degrowth in CY 2019.

Daimler India is in a contrary spot; it’s rolling back to 2015:

BharatBenz volume declined by 36% in CY 2019 compared to CY 2018.

In the Heavy Duty truck segment, Tata Motors, Ashok Leyland, Mahindra, Eicher deals declined by over 35% in only a solitary year. In the LDT fragment, Tata, Mahindra, Eicher, SML Isuzu chose twofold digit degrowth in CY 2019.

Due to the coronavirus, the oil costs plunged. This could decrease the working expense of the Vehicle and would additionally have a serious effect on the unequivocal truck region and a bit like compartment transport is rising to organize sway on the Indian Truck deal.

Among the HDT segments, in the last 4 Quarters of 2019, Tata Motors increased a 9% market share and Ashok Leyland remained losing 12% of its market share. Construction and Mining sectors showed slightly better growth in Q4 2019 compared to Q3 2019.

The manufacturing sector recorded degrowth invariably. Every week the retail inflation increased and weak customer sentiments made a huge impact on the market’s growth.

Due to coronavirus, the oil prices dropped. This could reduce the operating cost of any Vehicle. The Indian economy forecast for the year 2020 is expected to reach around 5.8%, which is a 0.9 percent drop from the previous estimate.

For 2021, the economy might reach 6.5% to 7%. This clearly depicts that the Indian economy will reach the worst possible point. However, there are a few growth signs evident in some sectors. Coronavirus would also have an indirect impact on the truck segments and other segments like a container where the conveyors will face a direct impact on Indian Truck sales.

India Automotive Industry’s emission norms are shifting from BS-IV to BS-VI and are effective from April 2020. The BS-VI norms demand innovations and new vehicle diagnostics (OBD). Furthermore, implementation of the BS-VI norm might raise the cost of all segment Small Commercial Vehicle, Light Commercial Vehicle, Medium Commercial Vehicle, and Heavy Commercial Vehicle segment. Depending on the type of vehicle, OEMs, and their advancement, the cost of a vehicle will vary. Some of the OEMs had already implemented BS-VI technology in their practice. It is expected that the price increase of those OEMs who had already implemented BS-VI technology in their practice, will be utterly less as compared to that of other OEMs. There will be some modifications in the design architecture of the vehicle which will make the investment horizon (ROI) longer and that will incidentally affect TCO.

The revised axle load norm that was declared in July 2018, had an immediate effect and increased the vehicles’ permissible GVW and payload capacity by approximately up to 16%. This regulation brought some challenges for fleet owners. The maintenance cost has increased without affecting the freight rate, thus dropping the profit. It eventually increased the demand for high GVW vehicles. Truck body code significantly improves the quality of a vehicle among OEMs and other local bodybuilders. Vehicle scrappage policy, which aims to promote the replacement of old vehicles under the incentive scheme, is quite questionable. The Ministry of Road Transports and Highways has a clear set of a regulatory roadmap emphasizing quality, safety, efficiency, and environment.

Awareness of technology, and realization of long-term “TCO benefits” will drive a customer to invest in value-added features, switching from the traditional price-based buying approach to the cost-value approach but this is limited with specific customers group. Indian OEMs are profoundly investing their money in product up-gradation to enhance performance and features to shall endure the tough competition and to meet customers’ expectations.

To withstand such a turmoil situation of the industry, the Indian Commercial Vehicle OEMs will have to focus on value trucks targeting the right set of customers and business models. The rising conflux of technologies in the automobile industry provides a platform for various stakeholders to offer a solution-based operating model

Advancement of purchases owing to BS-VI norms will partially be balanced by the liquidation of BS-IV inventory in fiscal 2020; Dealers rising fiscal 2020 at elevated levels of inventory are expected to reach lower levels, as dealers liquidate BS-IV inventory and thus leading to lower wholesale offtake compared to that of retail sales.

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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%.

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.

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.

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.

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.

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.

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 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).

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

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