Light Commercial Vehicle refers to vehicles used for the transportation of goods and weighing less than 3.5 metric tons. Most light commercial vehicles are vans; pickup trucks can also be classified as light commercial vehicles or passenger vehicles. The two major categories of light trucks and light passengers are the absolute main force in light commercial vehicles. It is motor vehicles with at least four wheels, used for the carriage of goods. The limit depends on national and professional definitions and varies between 3.5 and 7 tons. The minibuses are used for the transport of passengers, comprising more than eight seats in addition to the driver’s seat and having a maximum mass of 3.5 and 7 tons.
The India four-wheeler light commercial vehicle market estimated to grow at noteworthy CAGR of during the forecast period. The growth of the market can be attributed to the stringent government norms related to emissions, the increase in the global oil prices, and the growing penetration of downsized engines in the light commercial vehicle. Additionally, the increasing number of infrastructure development projects, easy availability of vehicle financing schemes, and growing e-commerce and logistics sector in India is projected to fuel the expansion of the LCV market. Moreover, the demand for specific transport solutions by end-users and increasing popularity of fleet sharing will propel the India four-wheeler light commercial vehicle market size. Also, the new emission regulations by the government of India and government incentives for EVs are expected to foster the growth of the market.
Moreover, the implementation of BS-IV standards and growing demand for CNG and electric vehicles will positively impact the four-wheeler light commercial vehicle market in the analysis periods. Further, the rapid pace of urbanization and the rise in consumption of goods, around the country is anticipated to fuel the demand for the light commercial vehicle. With the growth of autonomous technology and electrification, the light commercial vehicle market is expected to witness remarkable growth in the projected period. Furthermore, the upsurge in demand for commercial vehicles for the transportation of goods will spur the market growth of four-wheeler LCV.
With the growth of autonomous technology and electrification, the four-wheeler light commercial vehicle market is witnessing collaborations among obligatory OEMs and start-ups. It is anticipated that swelling emission regulations will propel the usage of wheeler light commercial vehicles. The light-duty vehicles are usually used for short-distance travel or short-distance transportation, and thus become the primary goal of major automobile manufacturers to develop new energy vehicles. The technical difficulties of pure electric vehicles still facing insufficient battery life and imperfect follow-up battery treatment at the end of life, future hybrid light vehicles, and gas-powered light vehicles will be realized faster development. Hybrid light vehicles solve the problem of insufficient battery life of pure electric vehicles and significantly reduce automobile fuel consumption.
The recent outbreak of a pandemic, COVID-19 has austerely impacted the economies worldwide. The automotive & transportation industry is the most exposed industry affected by the ongoing COVID-19 outbreak. COVID-19 is likely to have a significant impact on the supply chain and product demand in the automotive sector. The need for commercial vehicles is expected to drop with the shutdown of all non-essential services.
Based on the carrier type, the India four-wheeler light commercial vehicle market classified into load carrier and passenger carrier. The load carrier dominated the India four-wheeler light commercial vehicle market with the highest market share in 2019. The growth of the segment can be attributed to the LCV used for the transportation of goods. These vehicles are cost-effective and help in reducing emissions.
The passenger carrier will witness steady growth in the coming years due to the increased adoption of passenger carrier vehicles in the tourism and healthcare industry.
Based on the vehicle type, the India four-wheeler light commercial vehicle market segregated into Pickup, Mini-Truck, Van, and Others. The pickup segment accounted for the major market share in 2019. It is due to the pickup used for transporting low weight retails products, fruits & vegetable products, and logistics products.
The van will grow at a significant rate in the forecast period. It is owing to the transport of passengers, comprising more than eight seats, which are used in the tourism and healthcare industry.
Based on payload, the India four-wheeler light commercial vehicle market segmented into Less than 0.6 Mt, 0.6-1.25Mt, 1.26-2.5Mt, and 2.6-3.5Mt. The 2.6-3.5Mt segment accounted for the largest market share in 2019 attributable to these light commercial vehicles used for transportation of heavy goods products with highly efficient power and torque, ensuring smooth drivability.
Based on fuel type, the India four-wheeler light commercial vehicle market categorized into diesel, petrol, and CNG. The diesel segment held for a significant market share in 2019 and will witness to gain maximum market revenue by 2027. It is attributable to these vehicles used for transporting industries goods with maximum tones of vehicles less than 3.5.
The CNG will grow with a lucrative rate during the forecast span on account of the massive surge in demand for CNG vehicles for transporting passengers like Van. It produces far fewer CO2 emissions as compared to diesel and petrol and combusts virtually particle-free.
Based on the fuel injection type, the India four-wheeler light commercial vehicle market segmented into common rail direct fuel, direct fuel injector, indirect fuel injector, and others. The common rail direct fuel held higher market potential in 2019. It is attributed to CRIN injects the appropriate fuel quantity required for efficient combustion into the cylinder, and enable high power combined with a long lifetime.
The direct fuel injector segment exhibits a lucrative market share in 2019 and expected to generate significant revenue during 2020-2027. Due to its increased power, reduced emissions, and better fuel economy.
Based on the application, the India four-wheeler light commercial vehicle market classified into logistics, construction, passenger transportation, and others. The logistics segment held for a significant market share in 2019 and is expected to register a higher CAGR over the forecast period. It is attributable to increasing trade activities and the growth of the e-commerce industry.
The passenger transportation will grow with a worthwhile rate during the forecast span because the van provides affordable and better comfortable transport along with the increasing spending on commute in the country.
Based on geography, the India four-wheeler light commercial vehicle market segmented into North India, South India, West India, and East India. North India estimated to occupy the lion’s share in the four-wheeler light commercial vehicle market by 2027. It is owing to the growing domestic e-commerce industry that leads to the steady growth of the transportation industry.
South India occupied a prominent share of the four-wheeler light commercial vehicle market due to the rising automotive production in the region and stringent government regulations for emissions from the light commercial vehicles.
Companies such as Tata Motors Limited, Ashok Leyland Limited, Mahindra & Mahindra Ltd., Maruti Suzuki India Limited, VE Commercial Vehicles Limited, Force Motors Limited, SML Isuzu Limited, Piaggio Vehicles Private Limited, MAN Truck & Bus India Pvt. Ltd., Eicher Motors Limited and other are the key players in the India four-wheeler light commercial vehicle market.
By Carrier Type
By Vehicle Type
By Fuel Type
By Fuel Injection Type
India Four-Wheeler Light Commercial Vehicles Market