India is the fourth largest commercial vehicle market worldwide. However in spite of such credentials, the commercial vehicles segment has probably grown at the most sedate pace since the delicensing of Indian auto industry in 1991. However, post-2006 the industry showed a sudden surge in demand. However post 2006, there has been a How
The figures for 2008-2009 indicate that the commercial vehicles had a 3.95% market share as compared to the 15.96% of the passenger vehicles (4 wheelers). There were 376,932 commercial vehicles manufactured in this period out of which 39,825 were exported.
According to the IBEF report of 2008, commercial vehicles segment enjoyed the highest growth rate in the automobile industry. The chart below is a comparative analysis of the growth of commercial vehicles with passenger cars.
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Types of Commercial vehicles in India
Commercial vehicles are of two types – Goods vehicles and Passenger vehicles. Good vehicles used for transport are the trucks, tempos, containers, trailers and tankers. In this segment, the medium and heavy commercial vehicles goods occupy a maximum market share of 48%. The light commercial vehicles enjoy a market share of 38%. The industrial revolution that started post-Independence and contributed to urban migration led to a huge demand for these goods vehicles. In the recent years, with the retail boom all over the country, it has been noticed that the market share of Light Commercial Vehicles (LCVs) is increasing. This is indicative of the hub and spoke model that most retailers and producers are following.
The boom in the economy has also contributed to increase in passenger, business and leisure travel. These segments have also contributed to the passenger vehicles sales increase. With the expansion of the cities, the travel of the urban dwellers has also increased manifold. This is also one of the prime factors in increasing the passenger travel.
Commercial vehicle manufacturers in India
There are about nine manufacturers of commercial vehicles in India. Some of them are Eicher Motors Ltd, Tata Motors Limited, Ashok Leyland, Mahindra and Mahindra Limited and Volvo Motors. The commercial vehicles segment is dominated by leading domestic players like Tata Motors with a total market share of 62%, Ashok Leyland Ltd. with a total market share of 15%, M & M Ltd. with a total market share of 11%, Eicher Motors Ltd. with a total share of 6%, and others.
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