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India tops commercial vehicles sales chart - The Economic Times
NEW DELHI: India surpassed every other country in 2011, including China, in sales of commercial vehicles, repeating its feat as the world's fastest growing truck and bus market for the second successive year in a row.
Sales of commercial vehicles, mainly trucks, buses and lighter cargo vehicles grew 22% in 2011 year-on-year, higher than its global arch rival China which posted a 10% dip for the same year. While US, once the world's largest CV market bounced back into the positive territory in 2011 posting a 13% growth year-on-year signalling some revival of the global automotive market.
The CV markets in India and China are comparable. Both markets have a range of products catering from light commercial vehicles to intermediate segments as well as heavy multi-axle trucks.
China, however, has the advantage of better infrastructure in the terms of improved freight movement thereby the average return on investment is higher as the average daily movement is around 550 km/day against India's 300 km/day.
Sales of CVs remain robust for the local players who expect demand to grow in coming months allaying fears that tougher times could be here amidst rising taxes and slowing Indian economy.
"We are expecting a stronger growth of commercial vehicles in the coming months even if there is a slight blip due to rise in excise from the recent budget. With the Indian economy still growing reasonably well in percentage terms all signals lead to positive demand in coming months with a higher focus on the intra-city light cargo and passenger vehicles," said S Sandilya president of the Society of Indian Automobile Manufacturers, and chairman of country's third largest CV maker, Eicher Motor.
Commercial vehicle sales are seen as a barometer of economic activity and the interest in the higher growth from a steady GDP has led to entry of many international players in recent years. Already a slew of foreign players such as world's largest commercial vehicles maker Daimler AG, Volvo, Scania, MAN, Navistar, Kamaz Vectra and Hino Motors have set up beachheads in India in the past few years.
While Chinese players like Sinotruk International, Shandong Shifeng and Beiqi Foton Motor, the largest Chinese truck maker by volume, are all set to introduce their product in the Indian market in coming months.
The freight push in 2011 came from higher movement of finished goods coming from the manufacturing sectors such as auto, textile, pharma, FMCG as well as from agriculture thanks to a good harvest season leading to an increase in pan-India movement of goods.
According to analysts, the higher investment in infrastructure by the government and increase in the housing construction business led to higher movement of associated commodities such as cement, sand etc while the mining sectors also saw a push in demand for larger vehicles in the 25-31 tonnes segment, which posted the highest growth of 50% in any segment in 2011. The stronger demand for intra-city light commercial vehicles also fueled a surge in CV demand.
"The fundamentals of the markets continue to be strong with the boost coming from demand accruing from the focus on infrastructure development while the mushrooming of smaller cities and towns are pushing demand for sub-one tonner trucks," an executive of Ashok Leyland said.
China still holds dominant position in the global market with close to 4-million units sold last year and almost five times the size of the Indian market where only 8.8 lakh units were sold.
While India's surge in passenger cars makes it the fifth largest producer, its tally in commercial vehicles still comes at a laggard seventh in the global tally even after smaller countries like Mexico and Thailand.
nice india is worlds fastest car market and commercial vehicle market, great gowing.
NEW DELHI: India surpassed every other country in 2011, including China, in sales of commercial vehicles, repeating its feat as the world's fastest growing truck and bus market for the second successive year in a row.
Sales of commercial vehicles, mainly trucks, buses and lighter cargo vehicles grew 22% in 2011 year-on-year, higher than its global arch rival China which posted a 10% dip for the same year. While US, once the world's largest CV market bounced back into the positive territory in 2011 posting a 13% growth year-on-year signalling some revival of the global automotive market.
The CV markets in India and China are comparable. Both markets have a range of products catering from light commercial vehicles to intermediate segments as well as heavy multi-axle trucks.
China, however, has the advantage of better infrastructure in the terms of improved freight movement thereby the average return on investment is higher as the average daily movement is around 550 km/day against India's 300 km/day.
Sales of CVs remain robust for the local players who expect demand to grow in coming months allaying fears that tougher times could be here amidst rising taxes and slowing Indian economy.
"We are expecting a stronger growth of commercial vehicles in the coming months even if there is a slight blip due to rise in excise from the recent budget. With the Indian economy still growing reasonably well in percentage terms all signals lead to positive demand in coming months with a higher focus on the intra-city light cargo and passenger vehicles," said S Sandilya president of the Society of Indian Automobile Manufacturers, and chairman of country's third largest CV maker, Eicher Motor.
Commercial vehicle sales are seen as a barometer of economic activity and the interest in the higher growth from a steady GDP has led to entry of many international players in recent years. Already a slew of foreign players such as world's largest commercial vehicles maker Daimler AG, Volvo, Scania, MAN, Navistar, Kamaz Vectra and Hino Motors have set up beachheads in India in the past few years.
While Chinese players like Sinotruk International, Shandong Shifeng and Beiqi Foton Motor, the largest Chinese truck maker by volume, are all set to introduce their product in the Indian market in coming months.
The freight push in 2011 came from higher movement of finished goods coming from the manufacturing sectors such as auto, textile, pharma, FMCG as well as from agriculture thanks to a good harvest season leading to an increase in pan-India movement of goods.
According to analysts, the higher investment in infrastructure by the government and increase in the housing construction business led to higher movement of associated commodities such as cement, sand etc while the mining sectors also saw a push in demand for larger vehicles in the 25-31 tonnes segment, which posted the highest growth of 50% in any segment in 2011. The stronger demand for intra-city light commercial vehicles also fueled a surge in CV demand.
"The fundamentals of the markets continue to be strong with the boost coming from demand accruing from the focus on infrastructure development while the mushrooming of smaller cities and towns are pushing demand for sub-one tonner trucks," an executive of Ashok Leyland said.
China still holds dominant position in the global market with close to 4-million units sold last year and almost five times the size of the Indian market where only 8.8 lakh units were sold.
While India's surge in passenger cars makes it the fifth largest producer, its tally in commercial vehicles still comes at a laggard seventh in the global tally even after smaller countries like Mexico and Thailand.
nice india is worlds fastest car market and commercial vehicle market, great gowing.
