Market Size of india commercial vehicles Industry
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 48.27 Billion |
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Market Size (2030) | USD 65.26 Billion |
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Largest Share by Vehicle Body Type | Heavy-duty Commercial Trucks |
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CAGR (2024 - 2030) | 5.15 % |
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Fastest Growing by Vehicle Body Type | Buses |
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Market Concentration | High |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
India Commercial Vehicles Market Analysis
The India Commercial Vehicles Market size is estimated at 48.27 billion USD in 2024, and is expected to reach 65.26 billion USD by 2030, growing at a CAGR of 5.15% during the forecast period (2024-2030).
48.27 Billion
Market Size in 2024 (USD)
65.26 Billion
Market Size in 2030 (USD)
2.30 %
CAGR (2017-2023)
5.15 %
CAGR (2024-2030)
Largest Segment by Vehicle Body Type
45.01 %
value share, Heavy-duty Commercial Trucks, 2023
Light Commercial Pick-up Trucks dominate due to their versatility, high demand from small businesses, and suitability for a variety of commercial applications, making them essential in the market.
Fastest-growing Segment by Vehicle Body Type
8.15 %
Projected CAGR, Buses, 2024-2030
HDTs are growing rapidly due to increasing demand for efficient long-haul transportation, government incentives for electric vehicles, and advancements in commercial truck technology.
Largest Segment by Fuel Category
83.90 %
value share, Diesel, 2023
Diesel leads due to its efficiency for long-haul transportation, higher torque, and established infrastructure supporting diesel engines, making it a preferred choice for commercial operations.
Fastest-growing Segment by Fuel Category
65.18 %
Projected CAGR, FCEV, 2024-2030
FCEVs are the fastest-growing segment due to advancements in hydrogen fuel cell technology, increased investment in hydrogen infrastructure, and the government's push for zero-emission vehicles.
Leading Market Player
38.74 %
market share, Tata Motors Limited, 2023
Tata motors is the leading manufacturer of commercial vehicles in India. Most of the revenue generated is from India, owing to a greater number of EV sales when compared to other countries.
Indicates a versatile approach to meet the country's diverse commercial transport needs, emphasizing efficiency and adaptability in vehicle design
- The Indian commercial vehicles market encompasses various vehicle body types, including light commercial vehicles (LCVs), medium-duty trucks (MDTs), heavy-duty trucks (HDTs), and buses. This market plays a pivotal role in India's economic landscape, facilitating the movement of goods and passengers across the country's vast geography. The market trends in each vehicle segment mirror broader shifts in India's economy, infrastructure, and regulations, offering valuable insights into the transportation and logistics sectors.
- LCVs dominate the Indian commercial vehicles market thanks to their adaptability, cost-effectiveness, and ability to navigate the country's diverse and often challenging road conditions. These vehicles serve as the backbone of both urban and rural logistics, particularly in sectors like e-commerce, courier services, and FMCG distribution, where their accessibility to remote areas is paramount. The segment's growth is bolstered by favorable government policies, including reduced GST rates and initiatives supporting the MSME sector, which heavily relies on LCVs for transportation.
- MDTs and HDTs are vital for long-haul transportation, playing a key role in India's expanding infrastructure and industrial sectors. These vehicles find primary use in construction, mining, and heavy goods transportation, where their larger capacity and durability are essential. The demand for MDTs and HDTs closely aligns with economic growth, infrastructure projects, and industrial output. Recent regulatory changes, such as the adoption of BS-VI emission standards, have spurred technological advancements in this segment but have also led to increased vehicle costs, impacting demand dynamics.
Understand The Key Trends Shaping This Market
India Commercial Vehicles Industry Segmentation
Buses, Heavy-duty Commercial Trucks, Light Commercial Pick-up Trucks, Light Commercial Vans are covered as segments by Vehicle Body Type. Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type.
- The Indian commercial vehicles market encompasses various vehicle body types, including light commercial vehicles (LCVs), medium-duty trucks (MDTs), heavy-duty trucks (HDTs), and buses. This market plays a pivotal role in India's economic landscape, facilitating the movement of goods and passengers across the country's vast geography. The market trends in each vehicle segment mirror broader shifts in India's economy, infrastructure, and regulations, offering valuable insights into the transportation and logistics sectors.
- LCVs dominate the Indian commercial vehicles market thanks to their adaptability, cost-effectiveness, and ability to navigate the country's diverse and often challenging road conditions. These vehicles serve as the backbone of both urban and rural logistics, particularly in sectors like e-commerce, courier services, and FMCG distribution, where their accessibility to remote areas is paramount. The segment's growth is bolstered by favorable government policies, including reduced GST rates and initiatives supporting the MSME sector, which heavily relies on LCVs for transportation.
- MDTs and HDTs are vital for long-haul transportation, playing a key role in India's expanding infrastructure and industrial sectors. These vehicles find primary use in construction, mining, and heavy goods transportation, where their larger capacity and durability are essential. The demand for MDTs and HDTs closely aligns with economic growth, infrastructure projects, and industrial output. Recent regulatory changes, such as the adoption of BS-VI emission standards, have spurred technological advancements in this segment but have also led to increased vehicle costs, impacting demand dynamics.
| Vehicle Body Type | |
| Buses | |
| Heavy-duty Commercial Trucks | |
| Light Commercial Pick-up Trucks | |
| Light Commercial Vans |
| Propulsion Type | ||||||||
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India Commercial Vehicles Market Size Summary
The India Commercial Vehicles Market is a crucial component of the country's economic framework, encompassing a diverse range of vehicle types such as light commercial vehicles (LCVs), medium-duty trucks (MDTs), heavy-duty trucks (HDTs), and buses. This market is instrumental in facilitating the transportation of goods and passengers across India's extensive and varied landscape. LCVs, in particular, dominate the market due to their versatility and cost-effectiveness, making them essential for logistics in both urban and rural areas. The growth of this segment is supported by favorable government policies and initiatives that bolster the micro, small, and medium enterprises (MSME) sector, which heavily relies on LCVs. Meanwhile, MDTs and HDTs are integral to long-haul transportation, serving key industries such as construction and mining, where their capacity and durability are vital. The demand for these vehicles is closely tied to economic growth and infrastructure development, although recent regulatory changes, like the adoption of BS-VI emission standards, have introduced challenges by increasing vehicle costs.
The market is also witnessing a significant shift towards electrification, driven by government initiatives aimed at reducing pollution and promoting sustainable transportation. The Fame India scheme and its subsequent phases have been pivotal in encouraging the adoption of electric vehicles (EVs), with state governments increasingly integrating electric buses into their fleets. This transition not only reduces operational costs but also contributes to environmental sustainability by lowering carbon emissions. The government's Vehicle Scrappage Policy and ambitious targets for vehicle electrification by 2030 are further propelling the demand for electric commercial vehicles. The market is fairly consolidated, with major players like Ashok Leyland, Mahindra & Mahindra, SML Isuzu, Tata Motors, and VE Commercial Vehicles dominating the landscape. Recent partnerships and orders, such as those involving Eicher Trucks and Buses and Tata Elxsi, highlight the ongoing efforts to advance electric mobility solutions in India.
India Commercial Vehicles Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Vehicle Body Type
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1.1.1 Buses
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1.1.2 Heavy-duty Commercial Trucks
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1.1.3 Light Commercial Pick-up Trucks
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1.1.4 Light Commercial Vans
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1.2 Propulsion Type
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1.2.1 Hybrid and Electric Vehicles
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1.2.1.1 By Fuel Category
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1.2.1.1.1 BEV
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1.2.1.1.2 FCEV
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1.2.1.1.3 HEV
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1.2.1.1.4 PHEV
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1.2.2 ICE
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1.2.2.1 By Fuel Category
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1.2.2.1.1 CNG
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1.2.2.1.2 Diesel
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1.2.2.1.3 Gasoline
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1.2.2.1.4 LPG
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India Commercial Vehicles Market Size FAQs
How big is the India Commercial Vehicles Market?
The India Commercial Vehicles Market size is expected to reach USD 48.27 billion in 2024 and grow at a CAGR of 5.15% to reach USD 65.26 billion by 2030.
What is the current India Commercial Vehicles Market size?
In 2024, the India Commercial Vehicles Market size is expected to reach USD 48.27 billion.
