Market Trends of india mlcc Industry
Development of the e-commerce industry is expected to propel the production of light commercial vehicles
- In India, there is an increasing need for pickup trucks due to the expansion of the e-commerce and logistics industry. This has led to a rise in the production of light commercial vehicles, with a total of 54.28 thousand units manufactured in 2019.
- The majority of commercial vehicle sales in India consisted of diesel-fueled CVs, as diesel is the traditional fuel engine, generates more power, and is easily available. It is a must in commercial usage. However, norms by the government, awareness of e-mobility, development in charging infrastructure, and incentives are boosting the Battery Electric Vehicles (BEV) segment in the Indian commercial vehicle market. The expansion of diverse sectors like e-commerce, construction, and logistics, coupled with the demand for fuel-efficient transportation, is fueling the rise of light commercial vehicles throughout India. Contrarily, the light commercial vehicles (LCV) market is predicted to be positively influenced during the projected time frame due to factors like the government's increase in initiatives to promote e-mobility and the logistics sector's growing demand for electric trucks.
- With regard to EV (Electric Vehicle) deployment, India continues to move slowly compared to its other decarbonization initiatives. Companies are launching electric goods carriers. For instance, in May 2022, Tata Motors launched an electric version of the ACE light commercial vehicle, and the company signed MOUs with Bigbasket, Flipkart, Amazon, and other companies for the delivery of 39,000 units.
- These key elements are fueling India's production demand for heavy trucks. The country produced 61.73 thousand units in 2022, which is expected to increase in the future.
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Shifting focus to electric cars to boost the market growth
- Passenger car production has grown significantly over the past few years, and 3.62 million units were produced in 2019. However, the market witnessed its worst fall of 21.84% in 2020 over 2019. Relaxation in the COVID-19 pandemic-induced restraints and the resuming of business operations revived the passenger cars market with a slight growth of 28.01% in 2021 over 2020.
- While the demand for ICE vehicles is declining gradually, India is currently shifting focus to electric cars to reduce emissions. An increase in the electrification of vehicles and the banning of fossil fuel vehicles by 2035 is expected to boost the Indian passenger cars market in the future. In India, Tata’s Nexon BEV SUV was the bestselling model, accounting for two-thirds of EV sales, and most other offerings were SUVs.
- The government's numerous incentives and rebate programs are increasing the demand for battery electric cars nationwide. The governments of several states have updated the policies and amount levels on battery electric car subsidies. In 2021, India extended its main EV demand stimulating FAME II policy to 2024. It also increased subsidies for electric two-wheelers and made budgetary commitments for battery swapping policies and the development of EV manufacturing and battery supply capacity. These factors are expected to increase demand for electric passenger cars in India in the future.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The demand, largely driven by economic growth, is projected to grow steadily
- High crude oil prices threaten India's economic recovery
- Increasing demand from the construction industry is expected to propel the market
- Evolving technologies in smartphones and laptops expected to cause stagnation in desktop PC sales
- The rise in disposable incomes and the growth of IT companies in the country are driving demand
- Increasing online consumption with reliable internet speeds, advanced smartphone features, and 5G services becoming more popular are driving smartphone sales
- Increasing electronic learning and hybrid working environments are driving the demand
- The shifting trend toward clean energy public transportation boosting the market studied
- Development of the e-commerce industry is expected to propel the production of light commercial vehicles
- Advancements in EV technology to boost the sales of battery electric vehicles (BEVs) in India
- The emergence of Industry 4.0 is expected to provide promising opportunities for industrial automation
- Nickel prices soar with trading conditions boosting volatility
- The increasing demand for advanced technology, such as electric cars, smartphones, and solar panels, is driving demand
- The government’s PLI schemes and scorching temperatures are driving demand
- The rising number of mobile games and drop in sales of desktops are expected to lead to market stagnation
- Rising household incomes, improving living standards, rapid urbanization, and a rising number of nuclear families are driving demand
- Increasing penetration of digital media and multimedia content driving demand
- The rapid technological advancements with new features in TVs are driving the MLCC demand
- Rising technological advancements to boost heavy truck production in India
- Rising investments and government initiatives are expected to drive the market
- Supportive government incentives to boost market growth
- Increasing focus on hygiene due to COVID-19 in residential places and healthcare sector is driving the demand for service robots
