Press Release

Karnataka Small Commercial Vehicle Market to Grow with a CAGR of 5.38% through 2030

The growing demand for affordable transportation, improved infrastructure, and the rise in e-commerce are the factors driving the market in the forecast period 2026-2030. These factors will continue to fuel the growth of the small commercial vehicle market in Karnataka.

 

According to TechSci Research report, “Karnataka Small Commercial Vehicle Market – Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F”, The Karnataka Small Commercial Vehicle Market was valued at USD 115.92 Million in 2024 and is expected to reach USD 158.74 Million by 2030 with a CAGR of 5.38% during the forecast period.

The Karnataka Small Commercial Vehicle (SCV) market is undergoing substantial growth, supported by a dynamic combination of factors that enhance the need for efficient transport solutions across multiple sectors. A significant driver for this growth is the rise of micro, small, and medium enterprises (MSMEs) in the state. As these businesses expand and diversify, they require cost-effective, versatile vehicles to support their operations. Small commercial vehicles offer the flexibility and adaptability needed to reach customers in both urban and rural areas. This has made SCVs a vital part of supply chains, particularly in retail, logistics, and services sectors, where the demand for nimble vehicles is consistently rising.

Karnataka's increasing urbanization and the development of infrastructure corridors are also contributing to the growing prominence of SCVs. The state government’s ongoing investments in urban development, transportation infrastructure, and enhanced connectivity between cities and rural areas further strengthen the appeal of small commercial vehicles. The implementation of the Karnataka Urban Development Plan, coupled with improved roadways and enhanced city connectivity, ensures that SCVs are ideally positioned to navigate new business districts and rural areas alike. These vehicles are critical in efficiently delivering goods across various terrain types while maintaining low operational costs.

In addition, government schemes aimed at promoting environmental sustainability play a pivotal role in shaping the market. Karnataka’s push for clean energy solutions, including electric vehicle adoption, is opening up new avenues for small commercial vehicle manufacturers to explore greener alternatives. The increasing focus on reducing carbon emissions, alongside fiscal incentives for electric vehicles, provides a promising trajectory for the electric SCV segment. These developments align with national goals to reduce vehicular emissions and move toward cleaner transportation options. As the state moves toward achieving its green mobility goals, SCVs are expected to integrate more eco-friendly technologies, further driving their adoption in the coming years.

 

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Karnataka Small Commercial Vehicle Market Is Segmented by Vehicle Tonnage, Industry, Propulsion, and Region.

​In 2024, the Karnataka Small Commercial Vehicle (SCV) market experienced a significant shift towards electric propulsion, marking it as the fastest-growing segment. This surge was driven by several factors, including favorable government policies, increased environmental awareness, and advancements in EV infrastructure. The state's commitment to sustainability is evident in its ambitious Electric Vehicle Policy 2023-28, which aims to attract substantial investments and create numerous job opportunities in the EV sector . Additionally, Karnataka's extensive network of public charging stations, the highest in India, has alleviated range anxiety, further encouraging the adoption of electric SCVs . This infrastructure development, coupled with incentives such as tax exemptions for EVs, has made electric SCVs an attractive option for businesses seeking cost-effective and eco-friendly transportation solutions.​

Among the regions in Karnataka, Hubli-Dharwad emerged as the fastest-growing area for small commercial vehicles in 2024. This growth can be attributed to the region's robust industrial base, including a significant number of small and medium enterprises, and its strategic location as a commercial hub in North Karnataka . The government's focus on developing model EV cities in Hubli-Dharwad, as part of its EV policy, has further accelerated the adoption of electric SCVs in the region . These initiatives, combined with the region's industrial activities and infrastructure developments, have positioned Hubli-Dharwad as a leader in the adoption of electric small commercial vehicles in Karnataka.

Major Market Players Operating in Karnataka 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 India Private Limited
  • Saera Electric Auto Pvt. Ltd

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From what we're seeing, the Karnataka Small Commercial Vehicle market is really picking up pace. With the growing demand for affordable and efficient transport, especially for last-mile delivery, businesses are leaning more towards these vehicles. The push towards electric options is also becoming stronger, which is great for both cost savings and the environment. With the state's focus on improving infrastructure and supporting EV growth, there's a lot of potential here for businesses to grow and thrive”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

The report titled “Karnataka Small Commercial Vehicle Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Tonnage (Less Than 1 ton, 1 - 2 Ton, 2 - 3 Ton), By Industry (E-commerce, FMCG, Pharma, Electronics, Construction, Agricultural, Hospitality, Forestry, Oil & Gas, Others), By Propulsion (ICE, Electric), By Region, By Competition, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the Karnataka Small Commercial Vehicle Market.

 

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Karnataka Small Commercial Vehicle Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Tonnage (Less Than 1 ton, 1 - 2 Ton, 2 - 3 Ton), By Industry (E-commerce, FMCG, Pharma, Electronics, Construction, Agricultural, Hospitality, Forestry, Oil & Gas, Others), By Propulsion (ICE, Electric), By Region, By Competition, 2020-2030F

Automotive | Aug, 2022

The growing demand for affordable transportation, improved infrastructure, and the rise in e-commerce are the factors driving the market in the forecast period 2026-2030. These factors will continue to fuel the growth of the small commercial vehicle market in Karnataka.

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