India Truck Market Outlook to 2028

India Truck Market Overview

The Indian Truck Market size was valued at USD 22.3 billion in 2023, driven by the expansion of infrastructure, increased demand for transportation, and the growth of the logistics sector. This growth can be attributed to the government's focus on improving road infrastructure, the rise of e-commerce, and increased industrial production.

The Indian truck market is highly competitive, with several key players dominating the market. Prominent among these are Tata Motors, Ashok Leyland, Mahindra & Mahindra, Bharat Benz, and Eicher Motors. These companies have established a strong presence in the market through continuous innovation, strategic partnerships, and extensive distribution networks.

In April 2024, Tata Motors recorded29,538commercial vehicle sales, marking a31% year-on-year increase. The domestic sales of MH&ICV reached12,722 units, up from8,985 unitsin April 2023.

Maharashtra was a particularly dominant state in the Indian truck market, owing to its robust industrial base and well-developed infrastructure. The state's strategic location, extensive road network, and significant industrial activities make it a critical hub for truck operations.

India Truck Market Segmentation

The India Truck Market is segmented into different factors like by product, by end user and region.

By Product Type: The India Truck Market is segmented by product type into light trucks, medium trucks, and heavy trucks. In 2023, heavy trucks held the dominant market share due to their extensive use in infrastructure projects and the transportation of industrial goods. The heavy-duty nature of these trucks makes them indispensable for large-scale construction and industrial activities.

By Application: The India Truck Market is segmented by application into construction, logistics, and others (agriculture, mining). In 2023, the logistics segment had the largest market due to its rapid growth of the e-commerce sector and the need for efficient transportation of goods have driven the demand for trucks in logistics. Companies are increasingly investing in fleet expansion to meet the growing demand for quick and reliable delivery services.

By Region: The India Truck Market is segmented by region into north, south, east, and west. The western region was dominating the market in 2023. The region's dominance is attributed to its developed industrial sector, extensive road network, and major ports facilitating domestic and international trade.

India Truck Market Competitive Landscape

Company

Establishment Year

Headquarters

Tata Motors

1945

Mumbai, Maharashtra

Ashok Leyland

1948

Chennai, Tamil Nadu

Mahindra & Mahindra

1945

Mumbai, Maharashtra

Bharat Benz

2011

Chennai, Tamil Nadu

Eicher Motors

1948

New Delhi

Eicher Motors: Eicher Trucks and Buses will showcase India's first 5.5-ton electric truck, the Eicher Pro 2055 EV, at the Bharat Mobility Global Expo 2024. This innovative truck features a fully connected ecosystem with Eicher Live and an industry-first Uptime Centre. Launched in September 2023, it is designed to support greener e-commerce logistics and aligns with the governments Net-Zero vision by providing zero-emission mobility solutions.

Bharat Benz: Bharat Benz is set to launch an all-new Rigid Heavy-duty range in April 2024, which includes models such as the 2826R, 3526R, and 4832R. These trucks will feature a new 6.7-litre, common-rail BS VI Stage 2 engine designed for improved acceleration and durability. The company also focused on sustainability, with 85% of its manufacturing operations powered by renewable energy.

India Truck Market Analysis

India Truck Market Growth Divers

Expansion of Infrastructure: India's ongoing infrastructure development is a significant growth driver for the truck market. In 2024, the government allocated Rs.108 trillion (US$ 1.3 trillion) under the National Infrastructure Pipeline. This massive investment includes the construction of highways, bridges, and industrial corridors, which increases the demand for heavy-duty trucks for transportation and logistics. The extensive infrastructure projects enhance connectivity and logistics efficiency, driving the need for a robust truck fleet.

Rise in E-commerce and Logistics: The exponential growth of the e-commerce sector in India has spurred demand for efficient logistics and transportation solutions. In 2024, the necessitating a substantial increase in the number of delivery trucks. Companies like Amazon and Flipkart are expanding their logistics capabilities, resulting in higher demand for light and medium trucks to facilitate last-mile delivery. This surge in e-commerce activities directly boosts the truck market.

Industrial Growth and Manufacturing Sector Expansion: India's industrial sector, including manufacturing and production, has been experiencing significant growth. In 2024, the manufacturing sectors has the necessitating efficient transportation of raw materials and finished goods. The increase in industrial activities requires a reliable truck fleet to ensure seamless supply chain operations. This industrial growth is a key driver for the demand for medium and heavy-duty trucks.

India Truck Market Challenges

Regulatory Compliance and Environmental Standards: The implementation of stringent regulatory and environmental standards presents a challenge for truck manufacturers and operators. In 2024, the Indian government enforced Bharat Stage VI (BS-VI) emission norms, requiring significant investments in technology upgrades. Compliance with these norms involves higher manufacturing costs and operational complexities. Truck operators need to invest in cleaner technologies and retrofit existing fleets to meet these standards, increasing their financial burden.

Shortage of Skilled Drivers: The truck industry in India faces a shortage of skilled drivers, impacting the efficiency of operations. In 2024, the industry reported a deficit of 5 lakh drivers, leading to delays and increased operational costs. Attracting and retaining skilled drivers is a persistent challenge, exacerbated by demanding working conditions and low wages. Addressing this issue requires comprehensive training programs, better working conditions, and competitive compensation packages.

India Truck Market Government Initiatives

Electric Mobility Promotion Scheme: The EMPS 2024, launched by the Ministry of Heavy Industries, aims to promote electric vehicle (EV) adoption across India. Initially set to run from April to July 2024 with an outlay of INR 500 crore, the scheme was extended to September 2024 with an enhanced outlay of INR 778 crore.

National Logistics Policy: The National Logistics Policywas launched in September 2022 to enhance logistics efficiency and reduce costs in India. The government aims to lower logistics costs from 14-18% of GDP to around 8% by 2030. Significant investments are being made to develop multi-modal logistics parks and adopt technology in logistics operations. These initiatives are expected to drive growth in the truck market by improving infrastructure and operational efficiency.

India Truck Market Future Outlook

The Indian truck market is expected to grow continuously by 2028, driven by ongoing infrastructure projects, the rise in domestic manufacturing, and the continuous growth of the e-commerce sector. Additionally, the shift towards electric and hybrid trucks will play a crucial role in shaping the future of the market, with companies investing heavily in sustainable technologies.

Market Trends

Technological Advancements in Telematics and Connectivity: The integration of advanced telematics and connectivity solutions will shape the future of the truck market. By 2028, it is projected that most trucks in India will be equipped with telematics systems, providing real-time data on vehicle performance, driver behavior, and route optimization. The adoption of these technologies will enhance operational efficiency, reduce fuel consumption, and improve safety. Companies will invest in smart fleet management solutions to leverage data analytics for better decision-making.

Focus on Sustainability and Green Technologies: The focus on sustainability and green technologies will drive innovation in the truck market. By 2028, truck manufacturers are expected to invest heavily in developing and adopting cleaner and more fuel-efficient technologies. The adoption of electric and hybrid trucks, along with the use of alternative fuels, will reduce the environmental impact of transportation. The government's push for sustainable mobility solutions and stricter emission norms will accelerate the transition to greener trucks. Companies will prioritize sustainability in their product offerings to meet regulatory requirements and cater to environmentally conscious customers.
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