Report Overview

India Commercial Vehicle Market – Industry Trends & Forecast Report, 2029

India Commercial Vehicle Market size was estimated at USD 37.29 Billion in 2022. During the forecast period between 2023 and 2029 the size of  India Commercial Vehicle Market to grow at a CAGR of 3.88% reaching a value of reaching upto USD 46.85 Billion by 2029. Major factors driving the growth of India commercial vehicle market due to growing demand for electric and hybrid commercial vehicles. Also, the market has witnessed an increased focus on connectivity and digitization, with the integration of advanced technologies such as telematics and fleet management systems. Further, there is a rising demand for last-mile delivery vehicles due to the rapid growth of the e-commerce and logistics sectors. There has been a push towards higher payload capacity and fuel efficiency, leading to the introduction of innovative designs and lightweight materials in commercial vehicle manufacturing.

India Commercial Vehicle Market - Overview

Commercial vehicles are a vital part of modern economies, serving various industries and transportation needs. They encompass a wide range of vehicles, including trucks, vans, buses, and taxis, primarily designed for commercial purposes. These vehicles are utilized for transporting goods, passengers, or both, and play a crucial role in supply chains, logistics, public transportation, and delivery services. Commercial vehicles are built to withstand heavy loads, offer durability and reliability, and often incorporate specialized features for specific industries. With advancements in technology, commercial vehicles are increasingly adopting eco-friendly and electric-powered options, contributing to sustainability and reduced emissions in the transportation sector.

Growth Drivers

Significant Growth in Indian Economy

In recent years, the India commercial vehicle market has experienced a remarkable surge, primarily driven by the country's rapid economic growth. India's expanding economy has created a burgeoning demand for efficient and reliable transportation solutions, propelling the CV market forward. The growth in industries such as e-commerce, logistics, and infrastructure development has further boosted the need for commercial vehicles to facilitate the movement of goods and services across the nation. Also, government initiatives like 'Make in India' and the implementation of the Goods and Services Tax (GST) have created a favorable business environment, are attracting investments and stimulating the growth of the commercial vehicle sector. With these growth drivers in place, the India CV market is poised for continued expansion in the coming years.

Restraints

Chip Shortage and Fluctuating Raw Material Prices

Indian commercial vehicle market faces several restraints that hinder its growth potential. The ongoing global semiconductor shortage has resulted in a scarcity of electronic components, impacting the production of commercial vehicles and causing supply chain disruptions. Also, the excessive cost of raw materials, such as steel and aluminum, has escalated manufacturing expenses, affecting the affordability of commercial vehicles for buyers. Stringent emission norms and evolving regulations pose further challenges, requiring manufacturers to invest in costly technology upgrades and comply with changing standards. The inadequate infrastructure, including road conditions and logistics facilities, restricts the seamless movement of goods, affecting the overall efficiency and profitability of the commercial vehicle sector in India.

Impact of COVID-19 on India Commercial Vehicle Market

The COVID-19 pandemic adversely affected the India commercial vehicle market, causing disruptions and challenges across the industry. With the imposition of nationwide lockdowns and travel restrictions, demand for commercial vehicles plummeted as economic activities came to a halt. The closure of manufacturing units and supply chain disruptions further hampered the production and delivery of commercial vehicles. Also, reduced business activities and financial uncertainties led to a decline in fleet expansions and replacements. As a result, the market witnessed a sharp decline in sales and revenue, causing financial strain for manufacturers and dealers. The recovery of the India commercial vehicle market heavily relies on the containment of the virus, economic revival, and restoration of customer confidence.

India Commercial Vehicle Market

Segmental Coverage

India Commercial Vehicle Market – By Vehicle Type

On the basis of vehicle type, India commercial vehicle market is divided into Light Commercial Vehicles (LCVs), Heavy Trucks, and Buses & Coaches segments. The heavy trucks segment holds the largest market share. Heavy trucks play a crucial role in transporting goods over long distances and are commonly used in industries such as logistics, construction, and mining. With India's growing economy and expanding infrastructure projects, the demand for heavy trucks has witnessed significant growth. These vehicles can carry substantial loads and are designed to withstand rugged terrains. The heavy trucks segment is a vital component of the Indian commercial vehicle market, driving economic activities and contributing to the country's overall development.

India Commercial Vehicle Market – By Fuel Type

Based on fuel type, India commercial vehicle market is divided into IC Engine and Electric segments. The IC Engine segment refers to vehicles powered by internal combustion engines, such as diesel or petrol. These vehicles have been dominant in the Indian market for a long time, catering to various commercial transportation needs. However, with the growing focus on sustainability and environmental concerns, the electric vehicle segment has gained significant traction. Electric commercial vehicles offer lower emissions, reduced operating costs, and government incentives. While the IC engine segment currently holds a larger market share, the electric segment is steadily growing and poised for further expansion in the Indian commercial vehicle market.

India Commercial Vehicle Market – By End Use

On the basis of end use, India commercial vehicle market is divided into Industrial, Mining & Construction, Logistics, and Passenger Transportation segments. Logistics is the largest segment in the India commercial vehicle market. The logistics sector plays a crucial role in facilitating the movement of goods across the country, catering to the demands of various industries. With India's growing economy and increasing trade activities, the demand for efficient transportation and logistics services has witnessed substantial growth. This has led to a significant expansion in the logistics segment of the commercial vehicle market. The logistics segment encompasses a wide range of vehicles, including trucks, trailers, and other transport solutions, serving the needs of e-commerce, retail, manufacturing, and other sectors involved in the supply chain.

India Commercial Vehicle Market – By Region

Geographically, India commercial vehicle market is divided into North India, South India, East India, West India. Among these segments, the largest in terms of market size is difficult to determine without specific data or statistics. However, each region has its unique characteristics and contributes significantly to the overall commercial vehicle market in India. North India is known for its industrial hubs and urban centers, while South India is recognized for its automotive manufacturing clusters. East India is experiencing rapid industrial growth, and West India houses major ports and transportation hubs. Together, these segments form a diverse and dynamic commercial vehicle market in India.

Competitive Landscape

Major players in the India commercial vehicle market include Ashok Leyland, Bosch Rexroth AG, Daimler, Volkswagen AG, Toyota Motor Corporation, Mahindra and Mahindra, TATA Motors, AB Volvo, Golden Dragon, and General Motors. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In August 2022 - Mahindra & Mahindra Ltd. (M&M) and the Volkswagen Group expanded their cooperation. The companies signed a term sheet on the supply of MEB electric components for Mahindra’s new, purpose-built electric platform INGLO, deepening the partnering agreement from earlier this year.

• In August 2022 - Tata Motors Ltd and Ford India Private Limited (FIPL), signed a Unit Transfer Agreement (UTA) for the acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat.

Scope of the Report

By Vehicle Type

• Light Commercial Vehicles (LCVs)

• Heavy Trucks

• Buses & Coaches

By Fuel Type

• IC Engine

• Electric

By End Use

• Industrial

• Mining & Construction

• Logistics

• Passenger Transportation

By Region

• • North India

  • South India

  • East India

  • West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Commercial Vehicle Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing infrastructure development
         2. Rising E-commerce sector
      2. Restraints
         1. Fluctuation in fuel prices
      3. Opportunities
         1. Advancements in technology
      4. Challenges
         1. Environmental concerns
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Commercial Vehicle Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Light Commercial Vehicles (LCVs)
         2. Heavy Trucks
         3. Buses & Coaches
      2. By Fuel Type
         1. IC Engine
         2. Electric
      3. By End Use
         1. Industrial
         2. Mining & Construction
         3. Logistics
         4. Passenger Transportation
         5. Others
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Commercial Vehicle Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
      2. By Fuel Type
      3. By End Use
6. South India Commercial Vehicle Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
      2. By Fuel Type
      3. By End Use
7. East India Commercial Vehicle Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
      2. By Fuel Type
      3. By End Use
8. West India Commercial Vehicle Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
      2. By Fuel Type
      3. By End Use
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Commercial Vehicle Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Commercial Vehicle Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Ashok Leyland
    2. Bosch Rexroth AG
    3. Daimler
    4. Volkswagen AG
    5. Toyota Motor Corporation
    6. Mahindra and Mahindra
    7. TATA Motors
    8. AB Volvo
    9. Golden Dragon
    10. General Motors
    11. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Commercial Vehicle Segmentation       

Figure 2       India Commercial Vehicle Market Value Chain Analysis     

Figure 3       Company Market Share Analysis, 2022

Figure 4       India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029    

Figure 5       India Commercial Vehicle Market Share, By Vehicle Type, By Value, 2019–2029         

Figure 6       India Commercial Vehicle Market Share, By Fuel Type, By Value, 2019–2029

Figure 7       India Commercial Vehicle Market Share, By End Use, By Value, 2019–2029   

Figure 8       North India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029         

Figure 9       North India Commercial Vehicle Market Share, By Vehicle Type, By Value, 2019–2029 

Figure 10     North India Commercial Vehicle Market Share, By Fuel Type, By Value, 2019–2029 

Figure 11     North India Commercial Vehicle Market Share, By End Use, By Value, 2019–2029         

Figure 12     South India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029         

Figure 13     South India Commercial Vehicle Market Share, By Vehicle Type, By Value, 2019–2029 

Figure 14     South India Commercial Vehicle Market Share, By Fuel Type, By Value, 2019–2029 

Figure 15     South India Commercial Vehicle Market Share, By End Use, By Value, 2019–2029         

Figure 16     East India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029         

Figure 17     East India Commercial Vehicle Market Share, By Vehicle Type, By Value, 2019–2029 

Figure 18     East India Commercial Vehicle Market Share, By Fuel Type, By Value, 2019–2029         

Figure 19     East India Commercial Vehicle Market Share, By End Use, By Value, 2019–2029         

Figure 20     West India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029         

Figure 21     West India Commercial Vehicle Market Share, By Vehicle Type, By Value, 2019–2029 

Figure 22     West India Commercial Vehicle Market Share, By Fuel Type, By Value, 2019–2029         

Figure 23     West India Commercial Vehicle Market Share, By End Use, By Value, 2019–2029         

List of Tables

Table 1        India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029

Table 2        India Commercial Vehicle Market Size, By Vehicle Type, By Value, 2019–2029

Table 3        India Commercial Vehicle Market Size, By Fuel Type, By Value, 2019–2029

Table 4        India Commercial Vehicle Market Size, By End Use, By Value, 2019–2029

Table 5        North India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029

Table 6        North India Commercial Vehicle Market Size, By Vehicle Type, By Value, 2019–2029

Table 7        North India Commercial Vehicle Market Size, By Fuel Type, By Value, 2019–2029

Table 8        North India Commercial Vehicle Market Size, By End Use, By Value, 2019–2029

Table 9        South India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029

Table 10      South India Commercial Vehicle Market Size, By Vehicle Type, By Value, 2019–2029

Table 11      South India Commercial Vehicle Market Size, By Fuel Type, By Value, 2019–2029

Table 12      South India Commercial Vehicle Market Size, By End Use, By Value, 2019–2029

Table 13      East India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029

Table 14      East India Commercial Vehicle Market Size, By Vehicle Type, By Value, 2019–2029

Table 15      East India Commercial Vehicle Market Size, By Fuel Type, By Value, 2019–2029

Table 16      East India Commercial Vehicle Market Size, By End Use, By Value, 2019–2029

Table 17      West India Commercial Vehicle Market Size, By Value (USD Million), 2019–2029

Table 18      West India Commercial Vehicle Market Size, By Vehicle Type, By Value, 2019–2029

Table 19      West India Commercial Vehicle Market Size, By Fuel Type, By Value, 2019–2029

Table 20      West India Commercial Vehicle Market Size, By End Use, By Value, 2019–2029

Table 21      Ashok Leyland Company Overview

Table 22      Ashok Leyland Financial Overview

Table 23      Bosch Rexroth AG Company Overview

Table 24      Bosch Rexroth AG Financial Overview

Table 25      Daimler Company Overview

Table 26      Daimler Financial Overview

Table 27      Volkswagen AG Company Overview

Table 28      Volkswagen AG Financial Overview

Table 29      Toyota Motor Corporation Company Overview

Table 30      Toyota Motor Corporation Financial Overview

Table 31      Mahindra and Mahindra Company Overview

Table 32      Mahindra and Mahindra Financial Overview

Table 33      TATA Motors Company Overview

Table 34      TATA Motors Financial Overview

Table 35      AB Volvo Company Overview

Table 36      AB Volvo Financial Overview

Table 37      Golden Dragon Company Overview

Table 38      Golden Dragon Financial Overview

Table 39      General Motors Company Overview

Table 40      General Motors Financial Overview