Press Release

Gujarat Small Commercial Vehicle Market to be dominated by FMCG industry till 2027

Developing automotive industry and rise in the industrial activities are expected to drive the demand for Gujarat small commercial vehicle market in the forecast period, 2023-2027.

According to TechSci Research report, Small Commercial Vehicle Market – Gujarat Industry Size, Share, Trends, Opportunity, and Forecast, 2017-2027, the Gujarat small commercial vehicle market is expected to grow at a robust CAGR in the forecast period, 2023-2027. The rapidly growing road infrastructure, ongoing developments in the transportation and logistics industry, and the support for the development of small electric vehicles are the major drivers for Gujarat's small commercial vehicle market. The development of small businesses in the sectors such as FMCG, pharmaceutical, construction, agriculture, and e-commerce is acting as a positive factor to accelerate the growth of the Gujarat small commercial vehicle market.

However, the high cost of small commercial vehicles and the availability of alternate transportation options may restrain the growth of Gujarat small commercial vehicles market for the forecast period. 

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The Gujarat small commercial vehicle market is segmented into vehicle tonnage, industry, propulsion, competitive landscape, and regional distribution.

Based on vehicle tonnage, the market is divided into less than 1 ton, 1 - 2 ton, and 2 - 3 ton. The 2-3 ton segment is expected to hold the highest market share in the forecast period. The small commercial vehicles in this range have high load carrying capacity over long distances. Gujarat has a highly developed and growing agriculture and industrial sector in which there is a need to carry heavy goods for long distances. The high demand from these sectors is expected to boost market growth.

Based on industry, the market is divided into e-commerce, FMCG, pharma, electronics, construction, agricultural, hospitality, forestry, oil & gas, and others. The electronics industry is expected to account for a significant market share in the forecast period. According to Electronics Policy 2016, the government supports developing an electronics hub in the state. The government is providing monetary support and financial assistance to the new market players and aims to increase the export of electronic products to other countries. The electronic product manufacturing industries employ the use of small commercial vehicles to deliver products to inter and intra cities and are very fuel-efficient. The rapid development and advancements of the electronic industry are expected to fuel the demand for the Gujarat small commercial vehicle market for the forecast period.

Based on propulsion, the market is divided into ICE and electric. The ICE segment holds the largest market share and is expected to maintain its dominance for the next five years. The majority of the vehicles in the market use ICE engines for propulsion. The market players are experimenting and finding innovative solutions to improve vehicles' performance and fuel efficiency. The launch of superior-performing small commercial vehicle models in the market and investments to improve brand image and develop marketing strategies are expected to fuel the Gujarat small commercial vehicle market growth for the next five years.


Major market players operating in the Gujarat small commercial vehicle market are:

·         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  Gujarat Private Limited           

·         Saera Electric Auto Pvt. Ltd

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“Due to growing environmental concerns and the fluctuations in crude oil prices, the government is making efforts and investments to fuel the manufacturing and sales of electric vehicles. The state government of Gujarat has revised its electric vehicle policy in support of the FAME policy to bridge the gap and ease the process of transformation towards electric vehicles. Small electric commercial vehicles are expected to be the most lucrative market in the coming years due to the free registration of electric vehicles, the development of supportive charging infrastructure, and the availability of subsidies and incentives for manufacturing and buying electric vehicles. The growing commercial activities and the developing transportation and logistics industry are expected to propel the Gujarat small commercial vehicle market growth till 2027” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

Gujarat Small Commercial Vehicle Market By Vehicle Tonnage (Less Than 1 ton, 1 - 2 Ton, and 2 - 3 Ton), By Industry (E-commerce, FMCG, Pharma, Electronics, Construction, Agricultural, Hospitality, Forestry, Oil & Gas, and Others), By Propulsion (ICE and Electric), By Region, Competition Forecast & Opportunities, 2027”, has evaluated the future growth potential of Gujarat small commercial vehicle market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Gujarat small commercial vehicle market.


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