Maruti Suzuki to Launch its Light Commercial Vehicle
India: Maruti Suzuki is yet to expand its product portfolio by
launching much awaited light commercial vehicle project in India. The launch is
scheduled to take place later this year as per the information by a senior
company official.
The
Light Commercial Vehicle model which has been given a code name – Y9T, is
expected to enter the market with two models – 800cc diesel engine and 1200cc
CNG engine. The diesel engine vehicle with a capacity of 800cc is the smallest
engine capacity in the country as of now and is likely to have a loading
capacity of 1 Ton.
The
company has also started exporting the LCV in South American market as well as
in Tanzania from May, 2016. As of now, Maruti has successfully dispatched
around 100 Super Carry LCVs in both countries. Maruti Suzuki’s move to launch
Light Commercial Vehicle in the country is largely dependent on the rapidly growing segment in India.
Also, with a positive forecast of monsoon expected in the country, the demand
for LCVs is likely to increase from
the rural markets as well. Additionally, the segment depicted a brisk growth of
about 12% in the first quarter of FY 2017.
As
per TechSci Research, by foraying
into the Light Commercial Vehicle segment with the launch of their maiden
model, the company is expected to enhance their market share among other global
manufacturers operating in the country. Furthermore, the move is likely to
support the demand of tires across both OEM and Replacement tire segment in the
country, thereby offering an opportunity to leading tire manufacturers for
increasing their market share in the country’s tire market.
According to a recent report published by TechSci Research, “India
Tire Market Forecast & Opportunities, 2021”, India ranks among one of the largest
tire markets in the world with more than 60 tire manufacturing plants spread
across the country in 2015. Growing
automobile sales coupled with expanding automobile fleet are the major factors
boosting demand for tires in the country. Moreover, with favourable
inflationary scenario, expanding middle class population and increasing
national disposable income, tire sales across all the automobile segments are
expected to grow in the coming years. Presence of major automotive OEMs such as
Ford, Hyundai, Honda, Mahindra, Maruti Suzuki, TATA, BMW, etc. has been hugely
contributing to the sales of tires in India. Further, the country’s tire market is
forecast to witness a CAGR of over 9% during 2016-2021. Though the replacement
tire demand had a majority share in 2015, the OEM tire demand is expected to
outpace replacement tire demand during 2016-2021.