Govt initiatives, financial support and investment in manufacturing driving growth
The Indian Small Commercial Vehicle Market is anticipated to grow further with a CAGR of 15.14% in the forecast years FY2023-FY2027, to a market value of US$4,256.93 million by FY2027, from FY2021’s US$1,909.91 million, says a ResearchAndMarkets report.
Government initiatives, financial support and increasing investments from the manufacturing companies are further driving the growth of the Indian Small Commercial Vehicle Market in the upcoming five years, said the report “India’s Small Commercial Market” released on 10 Feb 2022.
The Indian Small Commercial Vehicle Market is anticipated to grow on account of increasing logistic services in the local market that surge the demand for small commercial vehicles.
Rapidly growing road and highway infrastructures and growing online shopping and shipping networks are further supporting the growth of the Indian Small Commercial Vehicle Market in the next five years. Increasing urbanization, growing small and medium businesses, increasing the transportation of products between local and regional destinations are substantiating the growth of the Indian Small Commercial Vehicle Market in the future five years.
The small commercial vehicle has advantages like a wider reach to narrow roads, steep hilly regions, etc., needed for last-mile connectivity. Wider reach of small commercial vehicles to narrow roads over other means of transport for transporting goods is propelling the small commercial vehicle market to grow in the country.
The Indian Small Commercial Vehicle Market is segmented by vehicle tonnage, industry, propulsion, regional distribution, and competitive landscape. Based on industry, the market is further bifurcated into e-commerce, FMCG, pharma, electronics, construction, agricultural, hospitality, forestry, oil & gas, and others.
FMCG industry is anticipated to hold the largest revenue shares of the market and dominate the market segment in the upcoming five years on account of the increasing reach of application of small commercial vehicles in transportation of products like breads, eggs, bathing soaps, facewash, washing powder, etc. to a consumer from local as well as regional markets.
The Increasing population of the country, growing internet penetration, schemes and discount offer over online shopping platforms, and easier delivery services are also aiding the growth of the Indian Small Commercial Vehicle Market in the future five years.
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 are among the major market players in the India platform that lead the market growth of the Indian Small Commercial Vehicle Market. fiinews.com
