India Small Commercial Vehicle Market 2027

FY2017 – FY2027 INDIA SMALL COMMERCIAL VEHICLE MARKET FORECAST AND OPPORTUNITIES

Published: December 2021 www.techsciresearch.com MARKET INTELLIGENCE . CONSULTING

Table of Contents

Ta b l e o f C o n t e n t s

S. No.

Contents

1.

Product Overview

2.

Research Methodology

3.

Executive Summary

4.

Impact of COVID-19 on India Small Commercial Vehicle Market

5.

Voice of Customer

6.

5.1.

Factors Influencing Purchase Decision

5.2.

Brand Recall

5.3.

Brand Satisfaction Level

India Small Commercial Vehicle Market Outlook 6.1.

Market Size & Forecast 6.1.1. By Value & Volume

6.2.

6.3.

Automotive

Market Share & Forecast 6.2.1.

By Vehicle Tonnage (Less Than 1 Ton, 1-2 Ton, 2-3 Ton)

6.2.2.

By Industry (E-Commerce, FMCG, Pharma, Electronics, Construction, Agricultural, Hospitality, Forestry, Oil & Gas and Others)

6.2.3.

By Propulsion (ICE and Electric)

6.2.5.

By Region (North, West, East and South)

6.2.6.

By Company (FY2021)

Market Map (By Vehicle Tonnage, By Industry, By Propulsion and By Region) © TechSci Research

22

Table of Contents S. No.

7.

Contents India 2-3 Ton Small Commercial Vehicle Market Outlook 7.1.

Market Size & Forecast 7.1.1.

7.2.

7.3.

8.

Market Share & Forecast 7.2.1.

By Industry

7.2.2.

By Propulsion

Market Map (By Industry)

India Less Than 1 Ton Small Commercial Vehicle Market Outlook 8.1.

Market Size & Forecast 8.1.1.

8.2.

8.3.

9.

By Value & Volume

Market Share & Forecast 8.2.1.

By Industry

8.2.2.

By Propulsion

Market Map (By Industry)

India 1-2 Ton Small Commercial Vehicle Market Outlook 9.1.

Market Size & Forecast 9.1.1.

9.2.

Automotive

By Value & Volume

By Value & Volume

Market Share & Forecast © TechSci Research

33

Table of Contents S. No.

Contents

9.3.

10.

9.2.1.

By Industry

9.2.2.

By Propulsion

Market Map (By Industry)

Market Dynamics 10.1.

Drivers

10.2.

Challenges

11.

Market Trends and Developments

12.

India Economic Profile

13.

Pricing Matrix

14.

Competitive Landscape

Automotive

14.1.

Lohia Auto Industries

14.2.

Tata Motors Limited

14.3.

Ashok Leyland Limited

14.4.

Atul Auto Limited

14.5.

Piaggio Vehicles Pvt. Ltd. (PVPL)

14.6.

Mahindra & Mahindra Ltd

14.7.

Bajaj Auto Ltd. © TechSci Research

44

Table of Contents S. No.

Contents 14.8.

TVS Motor Company

14.9.

Isuzu Motors India Private Limited

14.10.

Saera Electric Auto Pvt. Ltd (Mayuri)

15.

Strategic Recommendations

16.

About Us & Disclaimer

Automotive

© TechSci Research

55

PRODUCT OVERVIEW

Scope of Report Product of Interest (POI): Small Commercial Vehicle

Small commercial vehicles are vehicles that are propelled by either an internal combustion engine (ICE) or electricity and used for the purpose of load carriage.

These vehicles can be three-wheelers or four-wheelers and have a vehicle tonnage of up to 3 tons.

Market Segmentation INDIA SMALL COMMERCIAL VEHICLE MARKET

VEHICLE TONNAGE •

Less Than 1 Ton

•

E-Commerce

•

1-2 Ton

•

FMCG

•

2-3 Ton

•

Pharma

•

Electronics

•

Construction

PROPULSION •

ICE

•

Agricultural

•

Electric

•

Hospitality

•

Forestry

•

Oil & Gas

•

Others

REGION

Automotive

INDUSTRY

•

North

•

South

•

East

•

West

Year Range Review Period

FY2017 – FY2020 Base Year

FY2021 Estimated Year

FY2022 Forecast Period

FY2023 – FY2027

© TechSci Research

77

RESEARCH METHODOLOGY

Research Methodology

Market Profiling

In-depth secondary research was conducted to determine top players in the India small commercial vehicle market, overall market size and segmental market size.

Formulating Questionnaire

In order to conduct industry experts’ interviews, TechSci formulated a detailed discussion guide.

Developing List of Respondents

Data Collection

Data Validation

Data obtained as a result of primary and secondary research was validated through rigorous triangulation.

TechSci conducted interviews with industry experts and industry players for data collection and verification.

List of industry players and industry specialists was developed.

Primary Research

Data Collection

Data Filter & Analysis

Research & Intelligence

Actionable Insights

Business Solution

LinkedIn TechSci Internal Database

Secondary Research ✓ ✓ ✓ ✓ ✓ ✓ ✓

Automotive

✓ Recent Developments ✓ Market Changing Aspects/Dynamics ✓ Government Policies ✓ Conclusion

✓ Identifying Key Opinion Leaders ✓ Questionnaire Design ✓ In-depth Interviews

Primary Research ✓ ✓

Desk Research

Company Websites Company Annual Reports White Paper Study Financial Reports Investor Presentations Regulatory Body Associations, etc.

Data Analysis

The data was scrutinized using MS-Excel, statistical tools and internal proprietary database to obtain qualitative and quantitative insights about the India small commercial vehicle market.

Company Analysis ✓ Market Participants ✓ Key Strengths

Paid Sources

✓ ✓

Factiva Hoovers

© TechSci Research

99

Research Methodology

Baseline Methodology Our dedicated team of industry experts has monitored and analyzed various aspects of India small commercial vehicle market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors such as increasing demand for logistic services from different sectors like e-commerce, FMCG, construction, agricultural, pharma, among others. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in India small commercial vehicle market.

Methodology Followed for Calculation of Market Size: •

Market Size By Value and Volume: Market size, in terms of value and volume, for the year FY2021 was calculated based on information

collected

through

exhaustive

secondary

research

and

primary

surveys,

with

various

key

opinion

leaders/stakeholders, such as small commercial vehicle manufacturer & supplier companies, channel partners, market influencers & end users, industry experts and other industry participants.

•

The team interviewed more than 15 small commercial vehicle manufacturer & supplier companies, 45 channel partners and 10 industry experts and other value chain stakeholders in India small commercial vehicle market to obtain the overall market size for FY2017-FY2021, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the historical years data.

•

Respondents were asked about the current and future market growth rates, market shares by vehicle tonnage, by industry, by propulsion, by company and by each region. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares.

Revenue shares generated across various segments were further triangulated based on the response from other stakeholders.

Automotive

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1010

Research Methodology

Methodology Followed for Calculation of Market Shares: •

Market shares by vehicle tonnage, by industry, by company and by region were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from various segments of electric small commercial vehicle market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers.

Methodology Followed for Forecasting: •

TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.

•

Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast India Small Commercial Vehicle Market, TechSci Research used various forecast techniques such as: ✓

Moving Average

✓

Time Series Analysis

✓

Regression Analysis

✓

Econometric and Judgmental Analysis

Automotive

© TechSci Research

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Research Methodology

TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long term period to estimate the demand and to reach accurate

market number. The currency used in the report is the United States Dollar (USD), with the market size indicated in USD million.

Partial List of Companies Interviewed

Key Secondary Sources

▪ Lohia Auto Industries

▪ Society of Indian Automobile Manufacturers

▪ Tata Motors Limited

▪ World Bank

▪ Ashok Leyland Limited

▪ TechSci Research Proprietary Database &

▪ Atul Auto Limited

Knowledge Repository

▪ Piaggio Vehicles Pvt. Ltd. (PVPL)

▪ Company Annual Reports

▪ Mahindra & Mahindra Ltd

▪ Industry Magazines

▪ Bajaj Auto Ltd.

▪ Industry Reports

▪ TVS Motor Company

▪ News Dailies

▪ Isuzu Motors India Private Limited

▪ Credible Paid Databases

▪ Saera Electric Auto Pvt. Ltd (Mayuri)

Automotive

© TechSci Research

1212

Strategic Recommendation Increasing vehicle production and booming e-commerce industry to drive the demand for India small commercial vehicle market for the forecast period.

According to TechSci Research report, “India Small Commercial Vehicle Market - By Region, By Company Forecast & Opportunities, 2027”, India small commercial vehicle market was valued at over USD1909 million in 2021 and is forecast to grow at a CAGR of 15.14% to reach USD4256.93 million by 2027. The E-commerce industry is witnessing colossal growth in the past few years, and the outbreak of COVID-19 has further contributed to the increased sales. Small commercial vehicles are employed for the on-demand delivery and the demand for small commercial vehicles is increasing rapidly to meet high demand from e-commerce businesses to deliver goods on time.

The demand for small commercial electric vehicles in India has witnessed significant growth owing to its affordable application in last-mile cargo and logistic needs. For small commercial vehicle operators, low total cost of ownership is considered one of the crucial factors for business growth. In 2021, prices of petrol and diesel in the country had been high, with states like Rajasthan, Tamil Nadu, Telangana, etc., already breaching the USD1.31 per liter mark. According to Mahindra Electric Mobility Limited, one of their small electric commercial vehicles in the cargo segment, Treo Zor, has a certified driving range of 118 km-125 km on a full charge. For the same distance traveled, the charging cost is comparatively cheaper than the fuel cost. As a result, the total cost of ownership of the small electric commercial vehicle decreases dramatically for a longer span of time than its counterpart.

India small commercial vehicle market is segmented into vehicle tonnage, industry, propulsion, region, and company. Based on vehicle tonnage, market can be divided into less Than 1 ton, 1 - 2 Ton, and 2 - 3 Ton. The India small commercial vehicle market is majorly propelled by the 2-3 ton segment, accounting for a market share of 47.16%, in volume terms, in FY2021. One of the main factors determining the growth of the segment is its ability to carry heavier loads for longer distances. Moreover, the country is an industrial and agricultural powerhouse, where it is very common for people to carry heavy goods. Small commercial vehicles lying in 2-3 tons such as Tata Intra V30, Tata Yodha 1200, Mahindra Supro Profit Truck Maxi LX, etc., come in handy for such applications.

Based on the region, West India holds the major share in the India small commercial vehicle market with a 36.22% market share in terms of volume in FY2021. The region also accounts for the largest small commercial vehicle fleet in the country. West India comprises the most happening and largest cities of India, such as Mumbai, Jaipur, Ahmedabad, Pune, etc. West India leads over the other regions in terms of road infrastructure, industries, ports, etc., and is home to major industrial sectors such as chemical, construction, consumer durables, pharma, etc.

Leading players operating in India small commercial vehicle market include: 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 “Based on industry, E-commerce accounted for 14.94% market share in terms of volume in FY2021 in India small commercial vehicle market.

The e-commerce industry is booming in India owing to the growing internet penetration and large discount offers on online sales. According to World Bank open data, 41% of India’s population uses internet, compared to 20.81% in 2018. The enormous growth in internet penetration in India has transformed the way business is done in the country.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

1313 © TechSci Research Automotive

Strategic Recommendation India Small Commercial Vehicle Market Size, By Value (USD Million), By Volume (Thousand Units), FY2017-FY2027F CAGR FY2017-FY2021

By Value: xx%

By Volume: xx%

FY2017

FY2018

FY2019

FY2020

CAGR FY2022E-FY2027F

By Value: xx%

By Volume: xx%

FY2021

FY2022E

Value (USD Million)

FY2023F

FY2024F

FY2025F

FY2026F

FY2027F

Volume (Thousand Units)

India Small Commercial Vehicle Market Share, By Vehicle Tonnage, By Volume, FY2017-FY2027F

FY2017

FY2018

FY2019

FY2020

FY2021

FY2022E FY2023F FY2024F FY2025F FY2026F FY2027F

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

Less Than 1 Ton 30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

2-3 Ton 1-2 Ton

50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% India 1-2 Ton Small Commercial Vehicle Market Share, By Industry, By Volume, FY2017-FY2027F

FY2017

FY2018

FY2019

FY2020

FY2021

FY2022E FY2023F

FY2024F

FY2025F

FY2026F

FY2027F

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

E-Commerce 10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Electronics

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Pharma

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Construction

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Oil & Gas

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Agricultural

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Hospitality

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Forestry

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Others

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

FMCG

Automotive

© TechSci Research

1414

Strategic Recommendation

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Automotive

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About Us & Disclaimer

TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market.

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•

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•

India Electric Commercial Vehicle Market, By Propulsion Type (BEV, HEV, PHEV and FCEV), By Vehicle Type (Bus, Truck, and Pick-up Trucks), By

Range (0-150 Miles, 151-250 Miles, 251-500 Miles and 500 Miles & Above), By Component (Electric Motor, EV Battery and Hydrogen Fuel Cell), By Geography, Competition, Forecast & Opportunities, 2024 TechSci Research – North America 708 Third Avenue, Manhattan, New York, United States Tel: +1- 646- 360- 1656 Email: sales@techsciresearch.com www.techsciresearch.com

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Disclaimer The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.