| |
Home >
Industry
>
Industry
>
Indian Commercial Vehicle Industry
Indian Commercial Vehicle Industry
BharatBook adds new report on "Indian Commercial Vehicle Industry" which presents viewpoint on the industry that covers domestic and export sales forecasts for the next five years.
Navi Mumbai,
Maharashtra,
India
(pr4links.com)
09/11/2010
The commercial vehicle (CV) industry faced challenging times in 2008-09 - reduction in cargo and passenger traffic, lower freight rates, difficulty in availability of vehicle finance, stricter appraisal norms for financing - all on the back of the global financial crisis. The domestic CV sales dropped by 21.7 per cent over the previous year. The Goods Carrier (GC) segment witnessed a decline of 24 per cent, while Passenger Carrier (PC) segment witnessed sales drop by 7.1 per cent over the same period previous year. The exports too declined by 27.7 per cent in 2008-09. The profitability of the manufacturers came under pressure in 2008-09 – in the first half due to high input prices and in the second half due to huge reduction in sales volumes. The operating profit margin declined to 5.7 per cent from 9.2 per cent in 2007-08.
The stimulus packages announced by the government like a) excise duty cut from 14 per cent before December 2008 to 8 per cent (now rolled back to 10 per cent) b) implementation of the fleet modernisation program of the State Road Transport Undertakings [SRTU] under the Jawaharlal Nehru Nation Urban Renewal Mission (JNNURM) and c) accelerated depreciation at the rate of 50 per cent of the annual allowance for vehicles purchased between September 30, 2008 and September 30, 2009 ensured a revival in the sector in 2009-10.
Although the exports for the industry still have not come out of the woods, the domestic sales managed to revive, with recovery being more pronounced post September 2009 with growth rate for CV sales for the period September - December 2009 standing at 92.6 per cent y-o-y as compared to 19.1 per cent for April - December 2009. The sector was also helped by reduction in commodity prices during the first half of FY10. The prices of both steel and rubber reduced by around 20 per cent, translating into improved margins of the CV industry.
Various launches were made during April - December 2009 owing to the revival in the CV demand. In Light Commercial Vehilce (LCV) GC segment, Tata Motors launched ‘Super Ace’ and ‘Ace EX’ under <=3.5 tonnes sub-segment. In Medium and Heavy Commercial Vehicles (MHCV) GC segment it launched a new range of premium ‘World Truck’ in the 10 to 75 tonnes. Ashok Leyland launched its 31 tonner Multi Axle Vehicle ‘3116’. Mahindra and Mahindra launched the 0.5-tonne ‘Gio’ in competition to Tata Motors sub-one tonne ‘Ace’. The company also launched Maxi truck CNG and a mini truck ‘Maximmo’ during the said period. Thus, the competition level is rising in the CV industry.
CARE Research has developed a detailed statistical model that attempts to forecast the domestic commercial vehicle sales separately for goods and passenger use on the basis of interaction with the industry and analytical acumen. The GC segment sales are forecasted on the basis of GDP growth and thereby the growth in cargo, the existing fleet capacity and its utilisation rate, while the PC segment sales are forecasted on the basis of growth in population, the per capita travel depending on the income levels and the split of travel between public and private modes of transport. Other qualitative factors like macro-economic outlook, government actions, consumer confidence, willingness of vehicle financers to finance purchases, actions of OEMs like launches, aggressiveness, sales push techniques, dealer network, etc. have also been quantitatively built in demand forecasting model.
CARE Research foresees healthy growth of commercial vehicles in the next 4 – 5 years as the economy has resumed its buoyancy. According to CARE Research, LCV sales are likely to outpace the MHCV sales in terms of units and overall GC segment growing at a faster rate as against the PC.
Abundant and low cost labour coupled with local availability of raw materials like steel, aluminium and natural rubber, coupled with healthy demand outlook and 100 per cent FDI has made India an attractive destination for foreign players that are eyeing for a share in the pie either through joint venture with an Indian partner or on a stand-alone basis.
I. Outlook Section
* An executive summary is provided that briefly provides CARE Research’s viewpoint on the industry
* Outlook on domestic market provides five year forecasted domestic sales volumes of various segments and sub-segments of the commercial vehicles. It also presents the trends going forward, the demand drivers and factors contributing to the forecasted growth.
* Outlook on exports provides five year forecasted export volumes of various segments of the commercial vehicles. It also presents the trends going forward and the factors contributing to the forecasted growth.
* Description of CARE Research’s demand forecasting methodology
* Outlook on profitability and input costs.
II. Industry Section
* Introduction to the industry, including the industry evolution, classification, major clusters, Government policies and Porter’s seven force analysis
* Detailed analysis of historical trends for each vehicle segment (namely, LCV GC, MHCV GC, LCV PC, MHCV PC) and sub-segments is also presented in this section for both domestic as well as export market.
* Analysis of the players and competition in the industry, their respective products/brands and how each of the players fared in the industry. * The trends in imports, key sources and category of vehicles imported
* Overview of the global scenario
* Analysis of the cost structure, profitability and credit profile of the industry.
III. Company Section
* This section provides the in-depth profiles of the key players, namely Tata Motors, Ashok Leyland, Mahindra and Mahindra, Eicher Motors, Force Motors and Swaraj Mazda.
* Snapshot of financials, segmental sales volumes and domestic market share, capacities and production for the last two years.
* Year of incorporation, promoter group, their share-holding pattern, joint-ventures and financing arm, plant locations, outstanding credit ratings, products on offer, description of competitive position, strategy and expansions, recent launches and CARE Research’s comments.
* Segmental Break-up of domestic sales volume in 2008-09
* Product portfolio
IV. Annexure
* This section provides various key data tables as under:
* Sales Volumes by segment and sub-segments for last five years: Domestic and Exports
* Player-wise Domestic Sales Volumes by segment and sub-segments for last five years
* Player-wise Export Volumes by segment and sub-segments for last five years
* Player-wise Total Sales Volumes by segment and sub-segments for last five years
* Global Manufacturer-wise Production Volume for last five years
For an in-depth understanding and analysis of the Indian Commercial Vehicle industry and CARE Research’s outlook on the sector with its segment-wise forecast of domestic sales as well as exports for each year till FY 2013-14 and other key trends in the industry foreseen, please refer to the Report on the Indian Commercial Vehicle Industry, March - 2010 by CARE Research.
The subscription to this report includes monthly updates and any other releases, including Impact reports and articles on the Indian Commercial Vehicle industry for the next 1 year from the date of subscription.
To know more and to buy a copy of the report "Indian Commercial Vehicle Industry" feel free to visit http://www.bharatbook.com/detail.asp?id=40608&rt=Indian-Commercial-Vehicle-Industry.html
Or
Contact us at :
Bharat Book Bureau
207, Hermes Atrium, Sector 11, CBD Belapur, Navi Mumbai - 400 614, India.
Tel: +91 22 27578668
Fax: +91 22 27579131
Email: info@bharatbook.com
Follow us on twitter: http://twitter.com/3bbharatbook
About
Bharat Book Bureau, the leading market research information aggregator provides market research reports, company profiles, country reports, newsletters, and online databases for the past twenty two years to corporate, consulting firms, academic institutions, government departments, agencies etc., globally, including India. Our market research reports help global companies to know different market before starting up business / expanding in different countries across the world.
|