India small commercial
vehicle market is anticipated to grow at a CAGR of 15.14% in terms of value
during the forecast period to reach USD4,256.93 million by FY2027F. Anticipated
growth in the market can be attributed to booming small electric commercial vehicle
sales coupled with increasing government support for micro, small & medium
enterprises. Rapidly growing road infrastructure network, expanding e-commerce
network, growing government support for electric three-wheelers are also
driving the growth of the India small commercial vehicle market in the upcoming
five years.
Small commercial vehicle
market of India is thriving, as the government and the market leaders are
continuously working on expanding small commercial vehicle production within
the country. As the automotive and auto parts manufacturing industries are
included in the government’s investment plan, local manufacturers are also
qualified for financial incentives, which in turn is driving the demand for
small commercial vehicles in the country. The commercial vehicle is a motor
vehicle designed to transport cargo, carry specialized payloads, or perform
other utilitarian work. Small commercial vehicles are those commercial vehicles
that have vehicle tonnage less than or equal to 3 tons. Small commercial
vehicle varies greatly in size, power, and configuration, but the vast majority
feature body-on-frame construction, with a cabin that is independent of the
payload portion of the vehicle.
Growth in the small
commercial vehicle market is driven by increasing urbanization, construction,
and continuously improving road infrastructure. With the growing number of
small-scale businesses falling in sectors such as FMCG, agriculture,
e-commerce, pharma, construction, etc., across the country, the demand for a
small commercial vehicle to carry goods is constantly increasing. India small
commercial vehicle market is majorly dominated by the western and southern
parts of the country. These two regions account for the highest number of small
commercial vehicle sales in the country, with their combined market share being
well over 60% in FY2021 and the trend is expected to continue in the
forthcoming years as well. These two regions are comparatively dominating over
other regions based on their usage of small commercial vehicles across the
country. As compared to other large commercial vehicles, small commercial
vehicle has advantages like a wider reach to narrow roads, steep hilly regions,
etc., needed for last-mile connectivity. Wider reach of small commercial vehicles
to narrow roads over other means of transport for transporting goods is
propelling the small commercial vehicle market to grow in the country.
The COVID-19 pandemic
negatively impacted the Indian economy. The economy of India took a major hit
during 2020. According to the Confederation of All India Traders, the
coronavirus pandemic's second wave had an adverse impact on businesses in
India, the second wave which shook the country in April and May 2021, caused a
total business loss of USD0.20 billion (INR15.00 lakh crores). Furthermore, due
to the nation-wide lockdown which was imposed by the central government without
prior notice had caused India’s Gross Domestic Product (GDP) degrowth by 23.9%
in the second quarter of 2020, compared to the same period of 2019. The
negative impact of the shrinking Indian economy on small commercial vehicle
market of India is expected to reduce in coming years, as a result, the small
commercial vehicle market of India is anticipated to recover in around two
years.
Booming Electric Small
Commercial Vehicle Sales Drives the Market Growth
Low total cost of
ownership of the small electric commercial vehicle is considered as one of the
biggest selling points for small electric commercial vehicles. Although, the
cost of the small electric commercial vehicle can itself be the same, and
sometimes even more expensive than their diesel/petrol powered counterpart, the
total cost of ownership comes out to be significantly less. The major reason
behind the low total cost of ownership of a small electric commercial vehicle
is the surging prices of diesel and petrol. For the same distance traveled, the
charging cost is comparatively cheaper than the fuel cost, as a result, total
cost of ownership of the small electric commercial vehicle decreases
dramatically for a longer span of time. Moreover, total savings depends on the
specific model of small electric commercial vehicle a person buys and which
diesel/petrol-powered small commercial vehicle one is comparing with. However,
in all cases, the refueling cost of small electric commercial vehicle is far
lower than a traditional small commercial vehicle. The maintenance of a small
electric commercial vehicle is commonly much easier as small electric
commercial vehicles are free from the complexity associated with an internal
combustion engine. When it comes to maintaining a small electric commercial
vehicle, one does not have to be concerned about all the fluids like one has to
with an internal combustion engine. Moreover, the power control unit of a small
electric commercial vehicle propels the vehicle of stored energy coming from an
electrically charged battery, and the small electric commercial vehicle lacks
in terms of the number of components that are in motion, resulting in less wear
and tear and therefore low maintenance.
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Market Segmentation
The India small
commercial vehicle market is segmented based on vehicle tonnage, industry,
propulsion, region, and competitional landscape. Based on vehicle tonnage, the
market is further segmented into less than 1 ton, 1 - 2 Ton, and 2 - 3 Ton. On
the basis of industry, the market is fragmented into e-commerce, FMCG, pharma,
electronics, construction, agricultural, hospitality, forestry, oil & gas,
and others. Also, segmentation of the market on the grounds of propulsion is
done into ICE and electric. The market analysis also studies the regional
segmentation to devise regional market segmentation, divided among North, West,
East, and South.
Company Profiles
Lohia Auto Industries,
Tata Motors Limited, Ashok Leyland Limited, Atul Auto Limited, Piaggio Vehicles
Pvt. Ltd. (PVPL), Mahindra & Mahindra Ltd, Bajaj Auto Ltd., TVS Motor
Company, Isuzu Motors India Private Limited, Saera Electric Auto Pvt. Ltd, are
among the major market players in the India platform that lead the market
growth of the India small commercial vehicle market.
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Attribute
|
Details
|
|
Market
Size Value in FY2021
|
USD1,909.91
Million
|
|
Revenue
Forecast in FY2027
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USD4,256.93 Million
|
|
Growth
Rate
|
15.14%
|
|
Base
Year
|
FY2021
|
|
Historical
Years
|
FY2017 –
FY2021
|
|
Estimated
Year
|
FY2022
|
|
Forecast
Period
|
FY2023
– FY2027
|
|
Quantitative
Units
|
Revenue in
USD Million and CAGR for FY2017-FY2021 and FY2022-FY2027
|
|
Report
Coverage
|
Revenue
forecast, company share, competitive landscape, growth factors, and trends
|
|
Segments
Covered
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·
Vehicle Tonnage
·
Industry
·
Propulsion
·
Region
·
Company
|
|
Regional
Scope
|
North,
South, East, West
|
|
Key
Companies Profiled
|
Lohia
Auto Industries, Tata Motors Limited, Ashok Leyland Limited, Atul Auto
Limited, Piaggio Vehicles Pvt. Ltd. (PVPL), Mahindra & Mahindra Ltd,
Bajaj Auto Ltd., TVS Motor Company, Isuzu Motors India Private Limited, Saera
Electric Auto Pvt. Ltd
|
|
Customization
Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing
and Purchase Options
|
Avail
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, India small
commercial vehicle market has been segmented into following categories, in
addition to the industry trends which have also been detailed below:
- India Small Commercial Vehicle Market, Vehicle Tonnage:
- India Small Commercial Vehicle Market, By Industry:
- FMCG
- E-Commerce
- Agricultural
- Construction
- Pharma
- Electronics
- Oil & Gas
- Hospitality
- Forestry
- Others
- India Small
Commercial Vehicle Market, By Propulsion:
- India Small Commercial Vehicle Market, By Region:
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in India small 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).