The Indian small and light commercial vehicle (SCV and LCV) segment is expected to log a compounded annual growth rate (CAGR) of 18 percent over the next five years to reach around 830,000 units by 2016, said consultancy firm Frost and Sullivan.
According to an IANS report, citing the Frost & Sullivan's research study on the Indian SCV and LCV market said that the two segments were the fastest growing in the world.
'The SCV and LCV market in India is set for robust growth due to macro-economic parameters such as infrastructure development, upcoming Special Economic Zones (SEZs) across the country, and urbanisation,' the consultancy firm said.
According to Frost and Sullivan, alongside these key parameters, future demand for these vehicles is likely to be driven by factors like the abdundance of small lanes in the country where small vehicles can ply and the move towards hub-and-spoke model as heavy vehicles are not allowed inside the city limits, noted the report.
Many global vehicle manufacturers weere setting up their plants in India to tap this segment. Both Indian and multinational entrants were planning new products and variants with feature and price differentiations,the report said.
What is more, there were huge gaps in vehicle availability with regards to the gross vehicle weight (GVW), pricing, and power, currently, the report said and added: 'Hence, this situation can be exploited to tap further growth in this market'.