India’s commercial vehicle market is aimed to grow at Compound Annual Growth Rate of over 10% by 2025.This rapid expansion is an indication of the critical role in the country’s economic development.
Let us learn what a commercial vehicle market is.
The commercial vehicle market refers to the sector of the automotive industry that is involved in the production, sale, and usage of vehicles designed for commercial purposes like transportation of goods, passengers, or services as they play an important part in various industries like construction, agriculture, and public transportation.
Types of Commercial Vehicles:
- Light Commercial Vehicles(LCVs)
- Pickup Trucks, Vans, Mini Buses that are used for transportation over short distances.
- Medium Commercial Vehicles(MCVs)
- Box Trucks, Medium-Duty Trucks and Passenger Buses that help transport of freight and passenger related carriage for longer durations compared to LCVs.
- Heavy Commercial Vehicles(HCVs)
- Semi-Trucks/18-Wheelers,Dump Trucks,Tankers built for long-haul transportation of goods over large distances for demolition waste, materials and liquid transports.
- Specialty Vehicles
- Refrigerated Trucks-Transporting perishable goods,used especially in the food industry.
- Tipper Trucks-Transporting loose construction materials in the construction industry.
Cement Mixers,Ambulances and Fire Trucks are those such commercial vehicles that are used extensively for the development of various sectors.
Current Outlook on the insights of Commercial Vehicle Market:
In 2024, the Commercial Vehicles market in India is projected to see unit sales reaching approximately 850.60 thousand vehicles. This figure reflects the expected demand for commercial vehicles within the country. Additionally, the market is forecasted to grow at an annual rate (CAGR) of 1.88% from 2024 to 2029, leading to an estimated market volume of 933.40 thousand vehicles by 2029. This anticipated growth underscores the potential for sustained expansion in India’s Commercial Vehicles market.
Furthermore, production levels in the Commercial Vehicles market are expected to hit 1,018.00 thousand units by 2029. This projection indicates the market’s capacity to scale up production to meet the increasing demand, demonstrating the sector’s ability to support further growth and development.
Factors Contributing to the Growth of Commercial Vehicle Market:
- Rapid Urbanization: Construction of new infrastructures and urban development facilitates vehicular traffic and promotes different heavy-duty vehicles for material transport.
- Improved financial sectors: Establishment of Banks in various sectors, emphasizing on loans and incentives promotes the willingness of the public to acquire vehicles for employment,livelihood and transportation.
- Government Incentives: Governments latest policies like New Electric Vehicle Policy 2024 emphasizing on SCVs and EVs to promote green-economy.
- Ecommerce Boom: Ecommerce has increased connectivity among people and businesses with fast delivery of data and services.Thus,significantly increasing the need for CVs to handle deliveries and large-scale transportation of goods.
Emerging Trends in the Indian Commercial Vehicle Market:
- Electric Commercial Vehicles: India’s shift towards EVCs has played an important role in taking a step towards sustainability. With increased investments from companies in this sector resulted in reduced carbon emissions.
- Integration with IoT: Innovations like route optimization,providing real-time data and promoting fuel efficiency to fulfill the aim of improving vehicle performance have been introduced.
- Vehicle Financing and Leasing: Companies like Khiwasara Finance and Leasing Limited offer personalized solutions to boost the accessibility and affordability of commercial vehicles.
- Customized Products: Increasing trend towards specialized vehicles to meet specific needs of diverse industries like refrigerated trucks and tipper trucks for food and construction industries respectfully.
India’s commercial vehicle market continues to evolve while playing a crucial role in supporting India’s economic infrastructure and development and it is growing rapidly due to new technology, higher demand for transportation, and changing regulations. E-commerce and the need for better logistics are the sole drivers for this demand. Innovations like electric and self-driving vehicles are making transportation more efficient and eco-friendly.
In summary, the commercial vehicle market is set for continued growth, fueled by the need for better transportation solutions. Embracing new technologies will help businesses thrive.
Accelerate your business forward with Khiwasara Finance & Leasing Limited.Whether it be an Auto,Tempo, Four-Wheeler Car or SUVs along with Two-wheelers and Commercial vehicles, while adapting to the upsides of the growing commercial vehicle market with our personalized financing solutions for new and refurbished vehicles. Contact us today to fuel your growth!