Some of the interesting facts have been revealed by the recently released E&Y Automotive space report. The report says that the Indian Commercial vehicle market is expected to grow to 1.6 million vehicles in 2016-17. Currently the Indian Commercial vehicle segment is at 8 mn vehicles as per FY11-12 Actual Domestic Sales figures are concerned. Below are the figures in details
Domestic Sales FY 11-12
M&HCV's - 348,701
LCV's - 460,831
TOTAL - 809,532 vehicles
The Indian Commercial vehicle market registered a growth of 18.20% in FY11-12 over the previous year and with the entry of major International OEM's like Daimler, Beigi Foton etc. the market seems to be more challenging and growing and is expected to grow to tune of 1.6 million vehicles by 2016-17.
Also, the report gives an interesting insight that of the total length of 66,590 Kms of National highways present in India, only 38% are single lane thus leading to slower pace of travel by the goods carrier trucks. The trucks on an average cover 250 kms daily vis-a-vis 600 kms as per the global standards. This leaves a huge potential unatapped for the Indian market.
Moreover, with latest developments happening in the Infrastructure developments, rapid urbanisation and entry of major multinational players in the country will improve the situation further. Currently, Tata Motors & Ashok Leyland continues to dominate the domestic truck scene in India with a combined market share of over 85-90% and rest of the players making up the rest of the pie.
The Ernst & Young study concludes that the competition among commercial vehicle manufacturers in India is expected to intensify as international OEMs raise the bar in terms of technology, quality, durability and reliability; while domestic OEMs invest to upgrade products and technology, strengthen dealer relationships and loyalty, reinforce distribution networks and build new competencies to defend their market shares.