The commercial vehicles business market in India is massive. These include auto-rickshaws, passenger cars, vans, buses, taxi cars, pick-up trucks, etc. In short, any vehicle used for a commercial business by transporting goods or passengers for profit is called a Commercial Vehicle.
The Industry was set to see a reasonable rate of expansion in April 2020 but owing to the slow consumption growth; the forecast has now come down to a single digit.
Many other forecasts have seen a rising trend that may affect the way businesses are run with these commercial vehicles. Let us look at some of the most innovative business trends that can change the whole ball game:
#1 Boost with Tourism:
With travel awareness created worldwide, tourism is an industry that shows no signs of stopping. And with more people traveling from one place to another, the business of moving passengers and goods is set to grow.
So to leverage most out of this growing phenomenon, automobile companies in India have started investing and growing the heavy-duty commercial vehicles. This will expand their reach at both a national and global level.
#2 The E-vehicle growth:
Seeing the outburst and protests about environmental conservation on a worldwide scale, there is a sudden rise in demand for electric vehicles that do not emit any harmful substances in the air. This can be seen as the next big trend in the coming years.
Yet another thing that fuels this demand is, fuel! The ever-increasing fuel prices may just push people over the edge into buying an electric vehicle to reduce their overall cost.
Many automobile giants like Tesla and Ford have planned to build full-scale electric vehicle plants and franchises to meet the demands. This can help boost the commercial vehicle sector like crazy.
#3 Entry of the Foreign Brands:
With all the free-trade agreement treaties signed by the Indian government with various countries, and more countries like Indonesia, Thailand, China, Japan, Korea, etc. the entry of foreign commercial vehicle brands has become less complicated.
India may soon see new brands enter the market with their own unique USPs and capture the market share with their name on it. SEZs and product expansion facilities provided by in India will just help them in their growth in the nation.
#4 Increase in the demand for light commercial vehicles:
If one industry slows down, the other picks up pace. The slowing down of Heavy Commercial Vehicles, has seen a rise in the growth of light commercial vehicles. Compared to heavy vehicles, whose growth is reduced to single digits, lightweight ones still run at double digits.
So we can see many plans and industries set-up for the growth of those which are in demand.
Conclusion:
These are some strong forecasts purely based on the historical data and the already existing trends. They can be a hit or a miss. Time will tell where the industry is heading to. What do you think is the next big thing for commercial vehicles?
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