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.