Small commercial vehicles (SCVs) are expected to record a 13 percent CAGR growth till 2020, says a new report by Roland Berger Strategy Consultants.
10 Sep 2014 | 4471 Views | By Amit Panday
Small commercial vehicles (SCVs) are expected to record a 13 percent CAGR growth till 2020, says a new report by Roland Berger Strategy Consultants. It says securing the growth in this segment would be the need for last-mile connectivity in the hub-and-spoke model in India, which will largely define passenger ...
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Small commercial vehicles (SCVs) are expected to record a 13 percent CAGR growth till 2020, says a new report by Roland Berger Strategy Consultants. It says securing the growth in this segment would be the need for last-mile connectivity in the hub-and-spoke model in India, which will largely define passenger and cargo movement in India’s rural pockets.
The Roland Berger report underlines the fact that the SCV segment grew by close to 30 percent CAGR between 2010 and 2012 but has since fallen by roughly one percent CAGR over the last two years. “OEMs in the SCV segment need to focus on creating the demand for SCVs by developing newer applications (cash carrying van, milk van, waste collecting van and others). They also need to understand their customer’s needs and liaise with the government authorities in order to promote the SCV passenger sales,” said Dr Wilfried Aulbur, managing partner, Roland Berger Strategy Consultants India.
The SCV segment came into existence when Tata Motors launched the first ever four-wheeled light truck, Tata Ace, in the sub-two- tonne category in 2005. That segment has now grown to become the largest sub-segment within the CV industry.
According to SIAM data, in 2013-14, total domestic sales of SCVs (or light CVs) stood at 432,111 units, as against total domestic sales for CVs at 632,738 units. That points out at the dominant position of the SCVs, which accounted for nearly 68 percent of overall CV industry sales.
Photograph: Dr Wilfried Aulbur, managing partner, Roland Berger Strategy Consultants India