India Commercial Vehicle Market By Vehicle Type (Light Commercial Vehicles, Medium Commercial Vehicles, Heavy Commercial Vehicles), By Propulsion Type (Petrol, Diesel, and Alternate Fuel), By Application (Logistics, Mining, Construction and Others), By Region, Competition Forecast & Opportunities 2019-2029F

  • Industry : Automotive
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Summary

Report Description

The India Commercial Vehicle Market is expected to be driven in the forecast period due to several factors such as strong replacement demand, better financing options, healthy freight rates and improving profitability for fleet operators along with beneficial incentives from the government.

India Commercial Vehicle Market Scope

A commercial vehicle is a licensed vehicle used for the transportation of goods and fare-paying passengers. These vehicles are used in many industries such as mining, automobile, construction, logistics, healthcare, etc. Based on the area of application, these vehicles are divided into light-, medium- and heavy-commercial vehicles. Commercial vehicles with gross vehicle weight (GVW) of less than 7.5 tons are categorized as light commercial vehicles (LCV). All mini trucks, pickup trucks, and minivans fall under the light commercial vehicle (LCV) category. Commercial vehicles with GVW ranging from 7.5 tons to 16.2 tons are categorized as medium commercial vehicle (MCV). And lastly. Commercial vehicles with GWS greater than 16.2 tons are categorized under heavy commercial vehicles.

India Commercial Vehicle Market Overview

The performance of commercial vehicles sector is often considered as a barometer of an economy. Commercial vehicles’ application span over range of industries such as mining, automobiles, e-commerce etc., which contributes significantly to the GDP of the country.

The commercial vehicle market of India will continue to surge in the forecast period due to continuous push in the manufacturing industries and infrastructure development by the government. In addition, the market growth is also supported by the replacement demand, improvement in the macroeconomic environment and healthy traction in the underlying industries such as steel, cement, mining, food & beverages etc. Moreover, reasonable freight rates are also helping fleet operators in this sector.

India Commercial Vehicle Market Drivers

The Indian government is continuously backing the growth of manufacturing industries in India since the pandemic in order to revamp the economy. The commercial vehicles provide transportation of raw materials as well as distribution of final products to their designated destinations. Several industries like construction, logistics, mining, food & beverages, automotive, steel etc., are highly intertwined with commercial vehicles for transportation. Government initiatives such as Make in India is encouraging companies to develop and manufacture products in India and therefore creating more scope for commercial vehicles market.

Rapid urbanization is also one of the key reasons for the growth of commercial vehicle market in India because urbanization directly leads to the infrastructural development in the country. Moreover, the government is investing heavily in the infrastructural development of the country, especially in the road networks which are benefitting the commercial vehicle market by engaging these vehicles both in logistics and infrastructure development. In the Union Budget 2023-24, the highest budget allocation has been given to the urban sector in which the maximum percent is given to Pradhan Mantri Awas Yojana -Urban (PMAY-U) and metro projects, these two areas are meant for the development of residential complexes, metro rail, transport planning, transportation in National Capital Region (NCR), etc. Hence, these activities are going to directly attract the usage of steel, cement etc., which again directly depends upon the usage of commercial vehicles.

The replacement demand is also leading the growth of the commercial vehicle market in India. The resumption of schools, offices, and intercity bus travel and tourism is leading to the rise in bus demand in the country. Also, this industry is cyclical in nature, and replacement cycle has not come in the last few years. Therefore, the current replacement cycle of commercial vehicles is resulting in the growth of this market.           

India Commercial Vehicle Market Trends

As with other automotive markets, commercial vehicle market in India is also witnessing technological advancements. In India, the commercial vehicle market is plagued with incidences of miscommunication and delays. In order to tackle such incidents, technological developments are being made in newer trucks to track the live location of goods being sent to the desired locations. Moreover, in order to enhance the safety standards, features such as advanced driver assistance systems (ADAS) are also now equipped in trucks and buses. The OEMs are now installing sensors in trucks which help the drivers to check if they are causing any trouble to nearby vehicles. 

Commercial vehicle companies are focusing more on product development as compared to the market expansion in India because companies are having good share of fleet in the market and  are  looking to improve their operations and reduce cost. The key development in the commercial vehicle area is of the electric trucks which has gained lot of popularity in recent years not only due to their environmentally friendly nature but because there is a huge potential in cost reduction associated with their usage. Logistics industry has been one of the key markets for commercial vehicles in India for years. And this industry has always incurred huge losses due to transportation costs. There are lot of issues such as inconsistencies in tracking and empty miles also known as non-revenue miles which refers to the mileage that is accumulated while driving an empty container. The logistics industry is now looking for adoption of electric trucks which will help them in tracking shipments and reduce expenses.

India Commercial Vehicle Market Challenges

Fuel is a major expense for commercial vehicles. Rising fuel prices have caused an increase in the operation cost of commercial vehicle operators, making it difficult for the companies to remain profitable. And India is highly competitive and price centric market, therefore, it is quite difficult to pass on the additional cost to consumers caused by the fluctuating cost of fuel prices.

Public bus transport, which accounts for major portion of bus market in the country is facing huge problem in its profitability due to which OEMs are reluctant to bid for the project because of the fear of their poor financial conditions. State Road Transport Undertakings (SRTUs) are in a state of complete disorder. Most of the SRTUs in the country are in losses. They have been continuously under-allocated from the annual budget, and this has resulted in poor transport infrastructure in the country. Nearly a quarter of all STRU buses are overaged or older than 8 years. And the older the buses, the poorer the fuel efficiency and hence adding more cost to it.

India Commercial Vehicle Market Recent Developments

·         In 2023, Ashok Leyland has received an order of 1560 trucks from VRL logistics limited. This order is for AVTR 3120 and AVTR 4420 TT model trucks. The trucks are fitted with the latest features and technology which will help VRL to have reduced maintenance time, fewer stopovers and higher efficiencies resulting in increased profitability.

·         In 2022, Tata Motors announced that it will continue to invest around USD244 million in commercial vehicle business which includes transition to electric mobility through vehicles powered by CNG and other alternative fuels.

India Commercial Vehicle Market Opportunities

The growing urbanization and continuous push from government to boost infrastructure of India is leading the growth of India commercial vehicle market. This is providing enormous opportunities for OEMs and new market players to make their mark by bidding for various projects. These opportunities are also creating space for innovation and development in commercial vehicles sectors. Different kinds of projects require new ways of solving and alternate methods from traditional procedures, hence, creating scope of research and developments.      

Commercial vehicles OEMs in India are investing in electrification and alternate fuels in order to reduce carbon footprints, increase efficiency and mitigate the challenging issues faced by this industry. The electrification phase has led to the formation of startups which are highly competitive in terms of technology and features. All these reasons are now creating opportunities for investors as well as new companies in this sector. Thus, in the coming years there will be numerous opportunities in this market.

Market Segmentation

The India commercial vehicle market is segmented based on vehicle type, propulsion type,  application,  region and company. Based on vehicle type the market is divided into light commercial vehicles, medium commercial vehicles and heavy commercial vehicles. Based on the propulsion type the market is segmented into petrol, diesel, and alternate fuel. Based on the application, the market is segmented into logistics, mining, construction and others. On regional basis, it further divided into north, south, east and west.

Company Profiles

Tata Motors Limited, Mahindra & Mahindra Limited, Eicher Motors Limited, AB Volvo, Hinduja Group (Ashok Leyland), Force Motors Limited, Hyundai Motor India Limited, MAN Truck & Bus India Private Limited, and Daimler India Commercial Vehicles Private Limited are among the major market players in the India Commercial Vehicle Market.


Attribute

Details

Base Year

2023

Historical Years

2019 – 2022

Estimated Year

2024

Forecast Period

2025 – 2029

Quantitative Units

Revenue in USD Million, and CAGR for 2019-2022 and 2024E-2029F

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

By Vehicle Type

By Propulsion Type

By Application

By Region

Regional Scope

North, West, South and East

Key Companies Profiled

Tata Motors Limited, Mahindra & Mahindra Limited, Eicher Motors Limited, AB Volvo, Hinduja Group (Ashok Leyland), Force Motors Limited, Hyundai Motor India Limited, MAN Truck & Bus India Private Limited, Daimler India Commercial Vehicles Private Limited

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 

Report Scope:

In this report, the India commercial vehicle market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Commercial Vehicle Market, By Vehicle Type:
    • Light Commercial Vehicles
    • Medium Commercial Vehicles
    • Heavy Commercial Vehicles
  • India Commercial Vehicle Market, By Propulsion Type:
    • Petrol
    • Diesel
    • Alternate Fuel
  • India Commercial Vehicle Market, By Application:
    • Logistics
    • Mining
    • Construction
    • Others
  • India Commercial Vehicle Market, By Region:
    • North
    • South
    • East
    • West 

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India commercial vehicle market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.     Introduction

1.1.  Market Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Impact of COVID-19 on India Commercial Vehicles Market

4.1.  Key Segments Impacted

4.2.  Key Regions Impacted

5.    Voice of Customer Analysis

5.1.  Brand Awareness

5.2.  Factors Influencing Purchase Decision

5.3.  Challenges & Unmet Needs

6.    India Commercial Vehicles Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Volume

6.1.2.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Vehicle Type Market Share Analysis (Light Commercial Vehicles (LCV), Medium Commercial Vehicles (MCV), Heavy Commercial Vehicles (HCV))

6.2.2.     By Propulsion Type Market Share Analysis (Petrol, Diesel, and Alternate Fuel)

6.2.3.     By Application Market Share Analysis (Logistics, Mining, Construction and Others)

6.2.4.     By Regional Market Share Analysis

6.2.4.1.         North India Market Share Analysis

6.2.4.2.         South India Market Share Analysis

6.2.4.3.         East India Market Share Analysis

6.2.4.4.         West India Market Share Analysis

6.2.5.     By Company Market Share Analysis (Top 5 Companies, Others - By Value, 2023)

6.3.  India Commercial Vehicles Market Mapping & Opportunity Assessment

6.3.1.     By Vehicle Type Market Mapping & Opportunity Assessment

6.3.2.     By Propulsion Type Market Mapping & Opportunity Assessment

6.3.3.     By Application Market Mapping & Opportunity Assessment

6.3.4.     By Regional Market Mapping & Opportunity Assessment

7.    India Light Commercial Vehicles Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Volume

7.1.2.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Vehicle Type Market Share Analysis (Pickup Trucks & Vans)

7.2.2.     By Propulsion Type Market Share Analysis

7.2.3.     By Application Market Share Analysis

7.3.  Product Benchmarking

8.    India Medium Commercial Vehicles Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Volume

8.1.2.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Vehicle Type Market Share Analysis (Medium Trucks & Medium Buses)

8.2.2.     By Propulsion Type Market Share Analysis

8.2.3.     By Application Market Share Analysis

8.3.  Product Benchmarking

9.    India Heavy Commercial Vehicles Market Outlook

9.1.  Market Size & Forecast

9.1.1.     By Volume

9.1.2.     By Value

9.2.  Market Share & Forecast

9.2.1.     By Vehicle Type Market Share Analysis (Heavy Trucks & Heavy Buses)

9.2.2.     By Propulsion Type Market Share Analysis

9.2.3.     By Application Market Share Analysis

9.3.  Product Benchmarking

10.  Imports & Exports Analysis

11.  Porter’s Five Forces Model

11.1.              Competitive Rivalry

11.2.              Bargaining Powers of Suppliers

11.3.              Bargaining Powers of Buyers

11.4.              Threat of New Entrants

11.5.              Threat of Substitutes

12.  SWOT Analysis

12.1.              Strength

12.2.              Weakness

12.3.              Opportunities

12.4.              Threats

13.  Market Dynamics

13.1.              Market Drivers

13.2.              Market Challenges

14.  Market Trends and Developments

15.  Policy and Regulatory Landscape

16.  India Economic Profile

17.  Competitive Landscape

17.1.              Company Profiles (Up to 10 Leading Companies)

17.1.1.  Tata Motors Limited

17.1.1.1.      Company Details

17.1.1.2.      Product & Services

17.1.1.3.      Recent Developments

17.1.1.4.      Key Management Personnel

17.1.2.  Mahindra & Mahindra Limited

17.1.2.1.      Company Details

17.1.2.2.      Product & Services

17.1.2.3.      Recent Developments

17.1.2.4.      Key Management Personnel

17.1.3.  Eicher Motors Limited

17.1.3.1.      Company Details

17.1.3.2.      Product & Services

17.1.3.3.      Recent Developments

17.1.3.4.      Key Management Personnel

17.1.4.  AB Volvo

17.1.4.1.      Company Details

17.1.4.2.      Product & Services

17.1.4.3.      Recent Developments

17.1.4.4.      Key Management Personnel

17.1.5.  Hinduja Group (Ashoke Leyland)

17.1.5.1.      Company Details

17.1.5.2.      Product & Services

17.1.5.3.      Recent Developments

17.1.5.4.      Key Management Personnel

17.1.6.  Force Motors Ltd.

17.1.6.1.      Company Details

17.1.6.2.      Product & Services

17.1.6.3.      Recent Developments

17.1.6.4.      Key Management Personnel

17.1.7.  Hyundai Motor India Ltd

17.1.7.1.      Company Details

17.1.7.2.      Product & Services

17.1.7.3.      Recent Developments

17.1.7.4.      Key Management Personnel

17.1.8.  MAN Truck & Bus India Pvt Ltd

17.1.8.1.      Company Details

17.1.8.2.      Product & Services

17.1.8.3.      Recent Developments

17.1.8.4.      Key Management Personnel

17.1.9.  Daimler India Commercial Vehicles Pvt. Ltd.

17.1.9.1.      Company Details

17.1.9.2.      Product & Services

17.1.9.3.      Recent Developments

17.1.9.4.      Key Management Personnel

18.  Strategic Recommendations

18.1.              Key Focus Areas

18.2.              Target Regions

18.3.              Target Vehicle Type

19. About Us & Disclaimer

Figures and Tables

Frequently asked questions

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Tata Motors Limited, Mahindra & Mahindra Limited, Eicher Motors Limited, AB Volvo, Hinduja Group (Ashik Leyland), Force Motors Limited, Hyundai Motor India Limited, MAN Truck & Bus India Private Limited, and Daimler India Commercial Vehicles Private Limited are among the major market players in the India Commercial Vehicle market.

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The key drivers contributing to the growth and expansion of the commercial vehicle market in India include strong replacement demand, better financing options, growing economy, infrastructural development, and improving road connectivity.

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The commercial vehicle market in India is undergoing rapid technological advancements. The new vehicles come with ADAS, safety sensors, digitization, tracking systems etc. Moreover, the electrification phase is quickly getting popular among commercial vehicle OEMs due to cost reduction benefits that they provide in transportation sectors.

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The commercial vehicle industry in India is going through various challenges such as increasing commodity and fuels prices, increasing interest costs, and reduction in exports due to recessionary trend around the world.

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Srishti Verma

Business Consultant
Press Release

India Commercial Vehicle Market to be Dominated by Light Commercial Vehicles Segment During the Forecast Period

Oct, 2023

The India Commercial Vehicle Market is being driven by factors such as government infrastructure expenditure, replacement demand, development of e-commerce and back-to-work scenarios.

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