Indian CV manufacturers gear up for fiercer competition
By R. Natarajan, Managing Editor & Publisher
The year 2012 was a challenging and interesting one for the Indian commercial vehicle segment. The most turbulent at that, the year posed bigger challenges with its adverse impact on production as well as sales in most categories. Still the CV segment, with its immense growth potential, continued to consolidate its presence in the market by attracting more global vehicle manufacturers.
The multinationals in operation in India made their presence felt by sending across clear indications of what one could expect from the market. Daimler is one such with its peerless approach towards what is considered one of the most competitive and dynamic markets in the world. MAN, now with complete management control over the Indian business, is another global name ready to start afresh in the Indian market. Volvo has almost become a synonym of ‘luxury’ in the bus segment, while its Swedish neighbour Scania has begun construction of its plant which would make it Volvo’s neighbour in India too. And Foton, the Chinese giant, has entered the fray with its plant in Pune.
Having anticipated a potential foray by multinationals, the prominent domestic players like Tata Motors and Ashok Leyland are aggressively expanding their product portfolio and upgrading technologies, making it an intense battle for market share. AMW is another Indian company to watch out for, following its strong showing in the mining and construction segment, while Kamaz Vectra, the Indian face of the Russian market leader Kamaz, is also doing quite well in the segment.
SML Isuzu, buoyed by Japanese technology, is also in the running. In addition, there are two powerful joint ventures in the reckoning – Volvo-Eicher Commercial Vehicles (VECV), a strong partnership with big expansion plans in offing, and Mahindra-Navistar, which recently sold its 5,000th truck, attracting greater public attention.
Competition in the Indian commercial vehicle segment is hotting up, with several players in the field expanding their individual operations. Tata and Ashok Leyland, the Indian market leaders for long, are keen on maintaining their share somehow. How the two modify their strategies to suit the changing scenario will be watched with both interest and anxiety.