Indian Commercial Vehicle Outlook

Indian Commercial Vehicle Outlook

  • November 2021 •
  • 37 pages •
  • Report ID: 6189912 •
  • Format: PDF
Since 2017, the Indian commercial vehicle industry has been adapting to regulations that emphasize build quality and safety, tailpipe emission reduction, and asset traceability; the goal is to elevate vehicles to global standards. OEMs have made significant investments to adhere to these standards and to improve supply chain efficiency.Government leaders want to reduce India’s dependence on imported oil and adopt cleaner modes of transportation. The government-mandated shift from Bharat Stage IV (BSIV) emission standards to the stricter BSVI regime in April 2020 to reduce carbon emissions and improve air quality has resulted in a 10% to 15% increase in commercial vehicle costs because of modifications in engine architecture and requirements for new onboard diagnostics. For fleet operators, this means a longer wait to realize a return on investment. Electrification is a longer-term goal. The COVID-19 pandemic was another blow to commercial vehicle sales in fiscal year 2021 after a steep drop the previous because of a combination of other factors. Government-imposed nationwide lockdowns and other travel restrictions contributed to a decline in freight transportation; lower fleet utilization rates increased operators’ total cost of ownership and reduced profitability. As commercial vehicle buyers consider ways to reduce operational expenditure and maintenance costs, they are searching for ways to deliver more value per liter of fuel used, ton of cargo hauled, or kilometer traveled and are turning to vehicles with connectivity, comfort, and convenience features to maximize uptime. Other headwinds and cost-saving opportunities may push owners and operators back into dealerships to place orders for new vehicles sooner than they had anticipated.
Author: Christus Divyan