As of 2012, India has the second-largest road network in the world with a road length of over 4.24 million km, and in the past few years, the country’s government has been devoting increasing resources to improve the infrastructure of these roads. Since the early stages of these developments, urbanization and motorization has significantly burgeoned which in turn, has prompted a huge boom in the demand for commercial vehicles.
It is anticipated that the Commercial Vehicle Market in India will expand at a CAGR of 15.02 percent for the next four years, with much of this growth being attributed to one vendor: Tata Motors.
The commercial vehicle market in India as a whole is comprised a good handful of vendors, including Force Motors, Swaraj Mazda, Eicher Motors, and Ashok Leyland, however Tata Motors’ in-depth market understanding, coupled with its dynamic expansion and acquisition plans, is making it difficult for other participants to compete with them. This is reflected by the company’s dominance in the following segments:
- Light commercial vehicle (LCV) passenger carriers
- LCV goods carriers
- Heavy commercial vehicle (HCV) passenger carriers
HCV goods carriers is the only segment that is dominated by another vendor (Ashok Leyland), and the differences between these two market leaders is extremely slim. So what’s the key to market success for other vendors in the automotive industry of India?
Well, there’s no easy answer, but the main strategy adopted by Tata Motors thus far, has been satisfying customers through initiatives such as pan India workshops, service centers located every 50-70 km along major highways, 24×7 call centers, etc. to ensure profitability and gain market strength.
This is not to say that this is the only tried, tested, and true rule for success. In fact, we at TechNavio have been monitoring with a keen eye some of the other trends being employed by commercial vehicle vendors, including mergers and acquisitions, government contracts, and product portfolio expansions.
Overall, the Commercial Vehicle Market in India is an incredibly lucrative, and with plenty of opportunity for growth-especially when you consider the rapid rate at which the country’s infrastructure is evolving. As the nation changes and grows, vendors must also follow suit and adapt their market strategies accordingly. Those who are able to do so, stand to see immeasurable opportunity for profit in the years to come!
For more information, view our 2012-2016 report on the Commercial Vehicle Market in India.
Other Related Reports:
Global Commercial Vehicle Tire Market 2012-2016
Tire Market in India 2012-2016
