Moving beyond the product to offer complete solutions for truck customers will multiply growth opportunities, finds Frost & Sullivan’s Mobility team
Mumbai, India – August 10, 2017 – The heavy duty (HD) truck market in India is moving away from basic economy trucks to value trucks. With growing volumes, regulatory changes, and the entry of new global players, customers are looking beyond a low-cost product toward productivity and efficiency at a price premium. This gives a distinct advantage to market participants that have the ability to provide complete truck solutions to customers. The challenge is that value trucks currently account for less than 10 percent of the market, with volatility in freight rates, high fuel prices, and overcapacity slowing investment. Nevertheless, user focus on higher productivity, efficiency and lower total ownership costs will steadily push value truck growth rates ahead of the economy trucks segment.
“Higher reliability and productivity are the major benefits of value trucks with overall cost of ownership being the major USP,” said Sunny Manjani, Program Manager, Mobility Practice, Frost & Sullivan. “However, the poor availability of drivers and growing importance of comfort and safety will require value-added services to be packaged in the value truck offerings for increased uptake and customer retention.”
Indian Heavy Duty Truck Market Outlook provides an overview of the Indian HD trucks market, and examines the potential of value trucks in India, original equipment manufacturer (OEM) strategies for the HD trucks segment, and changing customer needs and expectations from HD trucks in 2020 and beyond. The study covers HD rigid, tipper and tractor trailers trucks (GVW of 16.2 tons and above).
To access more information on this analysis, please click here.
Significant trends shaping the Indian HD trucks market include:
- Improving power-to-weight ratio of Indian HD trucks, which are expected to reach current levels of those in China and South Africa within three to four years;
- Immense potential for value trucks in South Asia, ASEAN, Africa and the Middle East that will encourage Indian OEMs to look at a larger market and compete with Japanese, Chinese, European, and South Korean OEMs offering value trucks;
- Intensifying demand from cement, parcel, coal and infra development industries that will propel truck makers to explore customized solutions for better returns.
“Market-leading, homegrown players should invest more in technology as well as look for more opportunities in export markets,” noted Manjani. Their future-ready technology will enable entrants like BharatBenz (Daimler India Commercial Vehicles) and VECV (Volvo and Eicher) to become formidable players in the coming decade. Other major participants in the India HD truck market include Tata Motors, Ashok Leyland, Mahindra, and SML Isuzu.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Media Contact:
Priya George, Corporate Communications
M: +91 98403 55432; P: +91 44 6681 4414
E: [email protected]
Twitter: @Frost_Sullivan
Facebook: http://www.facebook.com/frostandsullivan
LinkedIn: https://www.linkedin.com/company-beta/4506/
