IAB Report – Small Commercial Vehicle segment to grow at 13 percent till 2020

Posted on: Sep 12, 2014 - 9:39pm IST

Tata and Mahindra, it says, will continue to dominate in their strong areas.

A report from Roland Berger Strategy Consultants has found that the Small Commercial Vehicle (SCV) segment in India is set to grow at a CAGR of 13 percent over the next 6 years.

Tata Ace Facelift
The report suggests that throughout this growth, the Tata Ace will remain dominant in its position in the >2ton category.

The largest segment in the Indian commercial vehicle industry, the report says, would be driven by the demand for better quality in last mile connectivity. With sales of around 4.32 lakh units in the last fiscal year, the SCV segment made for around 60 percent of the total commercial vehicle industry. By growing at a CAGR of 13 percent, the report says, the SCV segment in 2020 will stand for 80 percent of the overall market.

The segment has also outperformed the entire industry, declining only by around 1 percent CAGR over the last 2 years, compared to the over 11 percent decline the industry as a whole saw.

Mahindra Bolero Pick up Truck
The 2-3.5 Ton segment will be led by Mahindra’s range of pick up trucks, like the Mahindra Bolero Pick Up truck pictured here.

Key to the projected growth, the report says, is that OEMs continue to develop application-oriented models. Some of the recent applications have been SCVs that cater specifically to the milk, poultry and water distribution industries.

Also Read: New Tata Ace Zip XL showcased at 2014 Auto Expo

While the report says that the pioneer of the SCV segment, Tata Motors, will continue to dominate in the >2 ton segment, it says that Mahindra & Mahindra, by virtue of its expertise in pickup vehicles, will dominate in the 2-3.5 ton category.

You can read the full report below to gather more info.

Report on SCVs from Roland Berger Strategy Consultants

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Karthik
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A bit of a car freak and a bike nut, and a fan of trucks and technology too. Expect sharp stories that focus on those four fronts. As always, stay tuned to IndianAutosBlog.com for quick and unassuming updates from across the world.