Mumbai, 10 September 2014: The Small Commercial Vehicle (SCV) segment is the largest segment within the Commercial Vehicle industry with sales of approximately 432000 units in FY 2014 contributing to 60% of the overall industry. The SCV industry is expected to grow at 13% CAGR till FY 2020 accounting for 80% of the total market, according to a recent study by Roland Berger Strategy Consultants.
The need for intercity goods and passenger transportation drives the demand for SCVs. SCV segment was established in 2005 with the launch of ACE Truck in the sub 2 ton category, which has considerably grown since then. The segment grew by ~30% CAGR between 2010 and 2012 and it declined only by ~1% CAGR over the last 2 years while the overall industry declined by ~11% CAGR, during the same time.
“The SCV segment has outperformed all the other Commercial Vehicles segments and now accounts for more than 60% of the industry. OEMs in the SCV segment need to focus on creating the demand for SCVs by developing newer applications. They also need to understand their customers’ needs and liaise with government authorities in order to further promote SCV Passengers” says Dr. Wilfried Aulbur, Managing Partner at Roland Berger Strategy Consultants India.
The future of the SCV segment depends significantly on the rise of unique applications of the vehicles. OEMs could augment the current demand by continuously developing newer applications and educating the customers on the benefits of using SCVs. New applications are being developed to expand the market prompting newer customers to buy SCVs. Poultry, milk and water distribution industries are some of the new applications that have been witnessed over the last few years.
Roland Berger Strategy Consultants is a global consulting firm, a top player in the premier league of international consultancies. They serve top clients on challenging assignments in the global market. The Company prides itself on having a deep understanding of diverse cultures and markets. Roland Berger Strategy Consultants has 53 offices in 36 countries worldwide, with a local presence in all important markets. They advise the world’s leading corporations, non‐profit organizations and public institutions on management issues ranging from strategy development to performance improvement.
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