6ommerc|a| Veh|c|es 8egment

Commercial Sector comprises of three kinds of vehicles depending on

the load carrying capacity of the vehicle. They are Light, Medium and
Heavy Commercial Vehicles. The commercial vehicles in India are used
for two major purposes, which are carrying goods and carrying
passengers. The major section of the market is occupied by the
M and HCV which carry goods (48%) followed by goods carrying
LCVs with 38%. A major section of this market is driven by the goods
production industry. They employ mostly the multi axle vehicles which
account for almost 50% of the market. The domestic market is lead by
Tata Motors with 62% share. The Tata Motors have recently acquired
Daewoo Gap Motors. They are followed by Ashok Leyland with 15%
share. They have entered into a joint venture with Nissan for the
production of LCVs. They are closely followed by Mahindra and
Mahindra with 11% shares. The International Trucks has signed up
with M&M for the production of M and HCVs in India. Other small
player comprise of Eicher Motors, Swaraj Mazda and Volvo. Eicher has
recently entered the market for M and HCVs. Volvo is famous for its
luxury buses and heavy duty tippers. Many other global players are
trying to enter the Indian market by forming Joint ventures with the
existing companies. The CV exports have witnessed tremendous
growth in the export sector at 30%. The maximum market shares in
the export market are also held by Tata Motors with 66% share. 52%
of the total exports of CVs is contributed by the LCVs. A major portion
of the exports go the Gulf Countries, Africa and Sri Lanka.
Opportunities:
1) Global markets getting stagnant, while China, India and Thiland
driving double digit growth
2) Indian GDP targeted at 8-9.5% growth in coming years leading to
the need for massive infrastructure movement
3) India does not have a clearly defined scrap policy for old vehicles.
So far the small operators have been pushing the old vehicles on road
to maintain their bottom-line. However this fleet needs to be replaced
with better technology vehicles with better load capacity and less
maintenance
4) India Retail, logistic, distribution sectors getting organized creating
opportunity for CV market to split in to further more segments
5) Easy financial options. Most of the vehicle makers now have a
strategic relationship with bankers and also their own financial units
for easy credit.
6) More specialized vehicles required for perishable, oil, mining sectors


Challenges
1) Excise, interest rate, fuel price, raw material price hikes
2) Trained drivers for sophisticated vehicles and planned maintenance
3) Increased competition and expansion in capacity would pressure on
margins leading to just a volume driven model

The commercial vehicle market is purely an economic pay and has
moved cyclically, however India now established itself as a global
manufacturing hub for sourcing and now proving a high growth market
also makes it surely a long term story for CV makers.
TATA MUTURS:
Tata Motors is the largest automobile manufacturing companies in
India. Established way back in 1945 Tata Motors is a multinational
automobile company with its headquarters in Mumbai. Previously
known as Telco TATA Engineering and Locomotive Company Tata
Motors belongs to Tata Group. This company manufactures compact
medium sized utility vehicles. Over the last few decades it has stood as
the undisputed leader in the commercial vehicles segment. It is also
the third largest producer of passenger cars in India. This automobile
company in India is listed on both the Bombay Stock Exchange and
the New York Stock Exchange. The revenues earned by Tata Morts in
2010 accounted to $20.572 billion. Some of the well known cars
manufactured by Tata Motors are: Tata Indigo, Tata Indica, Tata Sumo
Tata Indigo Marina and Tata safari.
Mabindra &Mabindra
Mahindra & Mahindra is a major automobile manufacturer of utility
vehicles, passenger cars, pickups, commercial vehicles, and two
wheelers. Its tractors are sold on six continents It has acquired plants
in China and the United Kingdom, and has three assembly plants in
the USA. M&M has partnerships with international companies
like Renault SA, France

and International Truck and Engine
Corporation, USA. M&M's automotive division makes a wide range of
vehicles including MUVs, LCVs and three wheelers. It offers over 20
models including new generation multi-utility vehicles like
the Scorpio and the Bolero. It formerly had a joint venture with
Ford called Ford India Private Limited to build passenger cars.
Mahindra is market leader in Utility vehicles India and export markets.
In 2007 Joined hands with Navistar Inc. JV with Navistar Inc has
decided to produce Diesel Engine for the CVs.
Eicber Motors
Eicher Motors is a commercial vehicle manufacturer in India.the
company was renamed VE Commercial Vehicles Limited. It is a
50:50 joint venture with Volvo Group.
Swara| Mazda
$waraj Mazda Limited, an Chandigarh, India based automobile
company, is owned by the Sumitomo Corporation of Japan and Punjab
Tractors Limited of India, with a technical collaboration
with Isuzu and Mazda of Japan. Sumitomo upped its stake in the
company in 2009 by purchasing all of Punjab Tractors remaining
shares, raising their stake to 53.5%
[1]
Production began in 1985.
Presently manufacturing vehicles for goods and passenger
applications. Over the years it has built up a wide product portfolio
covering regular as well as niche segment needs. Swaraj Mazda
Vehicle population today stands over 1,45,000