Press Release

India Commercial Vehicles Market to Grow at CAGR 14% till 2021

Anticipated growth in construction, manufacturing and logistics sectors, coupled with increasing focus on tourism industry by central as well as various state governments to propel India commercial vehicles market through 2021

According to TechSci Research report, India Commercial Vehicles Market By Vehicle Type, By End Use Industry, Competition Forecast and Opportunities, 2021’’, the commercial vehicles market of India is projected to grow at a CAGR of over 14%, in value terms, over the course of next five years, on account of robust infrastructural developments coupled with growing logistics requirement arising from construction sector. On the basis of gross vehicle weight, the commercial vehicles market is broadly segmented into light commercial vehicles (LCVs), medium commercial vehicles (MCVs), and heavy commercial vehicles (HCVs). Light commercial vehicles are widely used for last mile connectivity needs across the country, due to easy manoeuvrability, better mileage, and lower operational cost.

On the other hand, MCVs and HCVs market is expected to be driven primarily by implementation of proposed infrastructure projects and revival of construction and mining sectors. Apart from expected growth in mining and construction sectors of India, rise in tourism industry and growing population of India, is likely to push the demand for passenger transportation. In order to cater this increasing demand, various State Road Transport Undertakings (SRTUs) along with private players are focusing on enhancing their commercial vehicles fleet size, thereby, fuelling the demand for commercial vehicles in the country.

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Western region of India accounted for the largest share in India commercial vehicles market, followed by Southern and Northern regions. Major factors drivingthe demand for commercial vehicles in Western region are infrastructure projects such as semi high speedtrains and bullet trains, smart cities, dedicated freight corridors along with sea port development and comparatively higher manufacturing activities by construction companies in this region. Western and Southern regions of India garnered a cumulative market share of over 60%, in the India commercial vehicles market in FY2016, in volume terms.

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“The light commercial vehicles segment is forecast to demonstrate the highest growth among all commercial vehicle segments over the next five years. Important factors driving light commercial vehicle sales include rise in passenger transportation on account of continuing growth in tourism and hospitality sector. However, heavy commercial vehicles are expected to maintain their dominance in the country’s commercial vehicles market through 2021.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“India Commercial Vehicles Market By Vehicle Type, By End Use Industry, Competition Forecast and Opportunities, 2021” has analyzed the future growth potential of India commercial vehicles market, and provides statistics and information on market sizes, shares and trends. The report is intended to provide cutting edge market intelligence and help decision makers to take sound investment evaluation. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in commercial vehicles market in India. 

 

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