India Small Commercial Vehicle Market to Grow at a CAGR of 7.58% Due to Expansion of E-Commerce Sector

India small commercial vehicle market is estimated to rise owing to the rising adoption of SCVs in logistics, rapid technological advancements in SCVs, growing trend of online shopping, government support for MSMEs, and increasing demand for last-mile delivery solutions.

According to the Markets and Data Research report, “India Small Commercial Vehicle Market Assessment, By Region Opportunities and Forecast, FY2018-FY2032F”, India small commercial vehicle market is expected to grow at a CAGR of 7.58% from FY2025 to FY2032. The market size shall increase from USD 4.87 billion in FY2024 to USD 8.41 billion by FY2032. India small commercial vehicle market is estimated to rise owing to a rapid expansion of the e-commerce sector and a significant rise in government support for micro, small, and medium enterprises. The rapid trend of online shopping has introduced a considerable rise in demand for efficient last-mile delivery solutions, which small commercial vehicles are efficiently positioned to fulfill owing to their feature to navigate narrow urban roads and access remote locations. In addition, the Government of India is introducing different initiatives to encourage the adoption of electric three-wheelers, and several other sustainable vehicles are projected to foster India small commercial vehicle market growth in the forecast period. The small commercial vehicle market is specifically strong across the Northern region of India, which is expected to account for 29.2% of the overall market. This dominance is accredited to higher economic and infrastructure development across the Northern region of India. Furthermore, the fast-moving consumer goods sector is important in driving demand for small commercial vehicles in India, as it relies significantly on SCVs for commuting and delivering daily essentials. The production of SCVs is rising, road infrastructure is improving, logistics capabilities are enhanced, and consumer spending is projected to drive the India SCV market shortly. The continuous investment in road infrastructure also supports the growth of the SCV market in India as it facilitates smoother transportation networks across the country. Moreover, with the favorable regulatory environment and the rising trend of urbanization, the India SCV market is rapidly expanding in the near future.

Companies in the market for small commercial vehicles in India plan to introduce new vehicles to address the rising demand for hub-to-hub transports and the requirement for last-mile delivery. For instance, in August 2024, Tata Motors Limited announced the launch of its first-of-its-kind sub-600 kg small commercial vehicle, aiming to address the increasing requirement for efficient last-mile delivery solutions, a sector presently experiencing an increase in interest from e-commerce giants. Government initiatives further support the trend of e-commerce expansion and efficient last-mile delivery solutions focused on ongoing investments in infrastructure and encouraging manufacturers to technological advancements in vehicle designs and efficiency.

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Spread through 131 pages, the "India Small Commercial Vehicle Market" report includes an in-depth TOC, over 40 market data figures, the latest market developments, key drivers and opportunities, and a thorough study of major company profiles. Moreover, the report offers strategic recommendations, pricing analysis, market share analysis, and value chain analysis in detail.

Key Takeaways:

• Continuous improvements in road infrastructure facilitate smoother transportation and logistics operations, fostering the need for small commercial vehicles in different sectors, including agriculture.
• The considerable rise in government initiatives and financial support for micro, small, and medium enterprises (MSMEs) facilitate investments in small commercial vehicles, thus expanding market growth.
• The boost in the e-commerce sector in India considerably propels the requirements for small commercial vehicles, as businesses necessitate efficient last-mile delivery solutions to address customer expectations.
• The rapid innovations in vehicle technology, including electric and hybrid vehicles, are fascinating to environmentally conscious consumers and are expanding the small commercial vehicle market in India.

India Small Commercial Vehicle Market is segmented in the following categories:

By Tonnage: Below 1 Ton, 1-1.8 Ton, 1.9-2.7 Ton, 2.8-3.5 Ton

By Industry: FMCG, E-Commerce, Agriculture, Construction, Pharma, Electronics, Oil & Gas, Hospitality, Others

By Propulsion: Internal Combustion Engine, Electric

By Region: North, West and Central, South, East and Northeast

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Based on propulsion, the internal combustion engine dominates the market growth owing to robust demand from the transportation and logistics sector, rapid urbanization, and infrastructure development. The demand for internal combustion engines in India is projected to rise as they are durable and offer performance in heavy-duty applications. In addition, initiatives, including ‘Make in India’ by the Indian government, have attracted considerable foreign investment, promoting local manufacturing capabilities. The existing infrastructure for fuel distribution further supports ICE adoption as electric vehicle charging networks are emerging. In addition, technological advancements in engines focused on enhancing fuel effectiveness and lessening emissions have made advanced ICEs more sustainable, aligning with regulatory standards while addressing the preferences of end-users for cost-effective transportation solutions.

Based on tonnage, the 2.8-3.5 tonnage vehicle segment holds the largest market share owing to its versatility and high utility value. This segment is also driven by the immense popularity of pickup trucks like Tata Super Ace and others, which perfectly merge compact size with substantial load-carrying capacity. The significant rise in the logistics sector, driven by increased infrastructure development and the e-commerce segment, further improved the requirement for these vehicles. In addition, government initiatives helping the logistics industry and enhancing road infrastructure contribute to India 2.8-3.5 tonnage market growth. The capability of these vehicles to navigate narrow roads while providing efficient freight transport makes them a preferred choice among businesses, strengthening their position in the market.

Major Companies Operating in India Small Commercial Vehicle Market Include:

• Tata Motors Limited
• Mahindra & Mahindra Limited
• Ashok Leyland
• Bajaj Auto Limited
• Maruti Suzuki India Limited
• Piaggio Vehicles Pvt. Ltd.
• TVS Motor Company Limited
• Atul Auto Limited
• Omega Seiki Mobility
• Euler Motors Private Limited

Companies in the India small commercial vehicle market are significantly planning to invest in different research and development activities to address the rising demand for efficient and high-performance small commercial vehicles from the logistics and e-commerce segment. In addition, companies are promoting innovation, enhancing current technologies, and introducing new transportation solutions. In addition, key participants in the market are introducing new electric passenger cars to benefit from governmental incentives and address the rising requirement for sustainable transportation. Furthermore, key participants in the India small commercial vehicle market plan to adopt different market growth strategies including joint ventures, new product development, mergers and acquisitions, partnerships, amalgamation and others to expand their footprints and product lines.

In January 2024, Mahindra & Mahindra Limited announced the launch of the new Supro Profit Truck Excel series, available in both Diesel and CNG Duo variants. The Supro Profit Truck Excel focuses on offering superior power, a best-in-class rated payload of 900 kg (Diesel) and 750 kg (CNG Duo), a bigger deck length, and an impressive range of over 500 km for Supro Excel CNG Duo, which redefines last-mile connectivity with its superior power and unsurpassed comfort.

In May 2024, Ashok Leyland inaugurated its new dealership for light commercial vehicles in North Delhi to ensure superior customer experience and strengthen their reach.

“India Small Commercial Vehicle Market Assessment, FY2018-FY2032F”, evaluates the future growth potential of India small commercial vehicle market and provides statistics and information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make investment decisions for their organizations more strategically. Moreover, the report identifies and examines the emerging trends along with key drivers, challenges, and opportunities in India small commercial vehicle market.

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