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Monday, October 31, 2011

Heavy Trucks in India - A Glimpse

The Indian automobile industry has been growing by leaps and bounds in the last couple of years; especially the small-car segment has witnessed spectacular growth. The de-regulation and liberalization of the Indian economy is one among the multitudes of reason for the change of fortune of this hitherto decaying sector of the economy. Add to it the growing population of the Indian middle-class with a discretionary income and what we have is a conducive and nurturing environment for economic growth.

The rate of growth has been stupendously above 30 percent for the small car segment. Even during the financial crisis of 2008 the sector remained upbeat and resilient. The growth of the sector has been a major draw for various multinationals to open their manufacturing plants in the country. Even the Truck manufacturers are having a good run at the market. The heavy trucks manufacturers are riding on the wave of rapid technological up gradation and production processes.

Over the last decade, the Indian market has been witness to many new heavy trucks on the roads. The demand for industrial trucks and heavy trucks has been on the higher side due to the rapid growth of the Indian economy.

This would not come as a surprise to many, as the growth of the economy has a direct relation to the growth in the heavy automobile sector. These kinds of vehicles become the carrier of growth by way of transporting raw materials and finished goods to the production points and at the market place. Hence, it can be safely asserted that as long as the Indian economy shows sign of growth, the heavy automobile manufacturing segment can also be expected to be on a growing path.

Trucks in the Indian context are major commercial vehicles with regards to the transportation of goods around the country. Trucks in India are rightly considered to be the lifeline of all commerce and trade activities. Precisely for this reason, India has been ranked eighth in the world in term of production of commercial vehicles. In the year 2010 alone, India produced a staggering 14.82 million motor vehicles.

The new entrants in the Indian automobile segment along with their established Indian counterparts are expanding their production capacities in order to fulfill the growing demand. Companies undergoing expansion include Hyundai, GM, Toyota, Honda,Tata Motors, VW Group, and Maruti-Suzuki. Tractors which are also a distinct part of the automobile industry has not been left behind in this growth story. India produced 1/3rd of the global output of tractors i.e. 3, 70,000 in the year 2009-2010.

All in all, the Indian automobile industry shows a positive sign of growth in the near future and will continue to attract foreign heavy trucks manufacturers to the Indian shores.

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