In top gear

While the Indian automobile industry has been growing annually at 16 per cent, the commercial vehicle (CV) segment has taken the lead by consistently growing at over 35 per cent in the last three years.

While the overall CV market grew at 38 per cent, the heavy commercial vehicles (HCV) market, including the multi-axle tractor trailer segment, grew at a much faster rate of 45 per cent, with sales touching 1.67 lakh units during the April-November period this fiscal, as against 1.21 lakh units in the same period last fiscal.

The light commercial vehicle (LCV) market grew at 32 per cent, with sale of 1.17 lakh units from April-November this fiscal, as against 89,025 units for the same period last fiscal, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

The impressive growth, witnessed for the first time, has also been attributed to a Supreme Court judgement banning overloading of trucks. This led to a huge demand in the heavier tractor-trailers segment, due to their low operating costs within the prescribed load carrying capacities of CVs.

Meanwhile, low tonnage trucks became popular for shifting goods from big warehouses and godowns to the tertiary parts of cities and towns and meet local transportation demands.

The 8 per cent GDP growth and the general boom in the manufacturing industry is paving the way for the growth in the HCV segment.

Pradeep Saxena, senior VP, TNS Automotive, said: "The major boom in the manufacturing sector and infrastructure projects such as roads, railways and ports is showing up in the demand for CVs. Even for transporting cars, two-wheelers and three-wheelers, high-tonnage trucks are required. These growth trends are here to remain for the next few years, despite the industry being cyclic in nature. A strong transport sector directly mirrors a buoyant economy."

The strong demand and consistent sales have prompted many players to jump into the CV bandwagon. A majority of the global players are expected to enter India in the next three years.

While US-based International Trucks & Engine Corporation has tied up with Mahindra , Germany-based MAN has entered into a joint venture with Force. Volvo, DaimlerChrysler, Nissan and Scania are also eyeing the Indian market.

The existing players, Tata Motors, Eicher Motors, Tatra Trucks, Asian Motor Works and Ashok Leyland are in expansion mode.

The largest CV manufacturer, Tata Motors, is ramping up capacity from the existing 2.75 lakh CV units at its plants in Jamshedpur, Lucknow and Pune.