Domestic Demand for Commercial Vehicles to Cross 10 Lakh Units by 2017
Government plans to spend Rs 795 crore for electric & hybrid vehicles; plans to start 10,000 truck driving schools across the country Mumbai, February 16, 2015: The commercial vehicles industry is quite an intense one in India and in the past few years it's the inherent cyclicity that has prolonged more than usual, throwing numerous challenges at the players. Despite such challenges the commercial vehicles industry holds tremendous potential. And, fuelling this surge is the First Edition of the ET ZigWheels Commercial Vehicles Conclave 2015. Gracing the event Anant Geete, Union Minister, Heavy Industries and Public Sector Enterprises, said, ?India has tremendous potential in the Commercial Vehicles Segment and we need to feed this potential by working in union with the manufacturers. And,?at this ET ZigWheels Commercial Vehicles Conclave 2015 I assure that they will get all the support possible from the government.? Moreover, he called all the players in the commercial vehicle sector to bring in their proposals with regards to the help that they are seeking from the government. He further added, that the commercial vehicles sector has been quite neglected so far but his presence at the ET ZigWheels Commercial Vehicles Conclave 2015 underlines that the government wants to support the industry. He further added by saying that the Government is also looking to take a step in the green direction and already has an approval of Rs 795 crore for electric and hybrid vehicles and eventually Rs 14,000 crore will be spent on alternate fuel vehicles. Nitin Gadkari, Union Minister, Road Transport, Highway & Shipping?addresses?the conclave through the video and touched on various new government policies and schemes. He also stated that the government is planning to open nearly 10,000 truck driving schools across the country and also spoke about developing water transport along with surface transport. In addition, his focus was more on getting the basics in place for the drivers. The shortage of truck drivers has been a big concern in the industry and to address this need, he said that the ministry has been trying to bring in laws that will extend insurance and Provident Fund benefits to the drivers. Efforts will also be made to ensure that the drivers have fixed working hours. Speaking at the Commercial Vehicles Conclave 2015, Mr.?R?Ramakrishnan,?Senior VP, Commercial Vehicles, Tata Motors?says?From 2007 to 2010, the market in India for medium and heavy trucks increased by more than 15 percent, with light commercial vehicles up 57 percent. Bus demand has also soared as the most popular means of transportation in large inner cities. Two factors assure rising demand for commercial vehicles and, in particular, for heavy trucks in India. The construction sector will continue to experience dynamic growth, and the road network will be substantially improved. Already, the Indian government has introduced a state program for upgrading and building roads and strengthening harbor connections. National highways, which comprise only about 2 percent of the road network but carry 40 percent of the traffic, will be particularly important. By connecting more rural areas to the road network, the need for commercial vehicles outside large metropolitan areas will also rise?. The Commercial Vehicles Conclave 2015 powered by ET and ZigWheels saw the who?s who of the commercial vehicle industry at the ITC Maratha, Mumbai.?Mr. VG Ramakrishna, Managing Director, South Asia, Frost and Sullivan?was?also?at the conclave to share his opinions on the prospects of the commercial vehicle (CV) industry. Ramakrishna, says??that?The domestic demand for commercial vehicles will cross the 10 lakh units mark by 2017. The lower crude oil prices is helping the commercial vehicle industry to grow. He is of the opinion that the revival of the mining and infrastructure sectors is expected to trigger a double digit growth in the Tipper segment. The Frost and Sullivan official also predicts that the agricultural output is likely to be robust in the next financial year, which will then start triggering demand for light commercial vehicles. Medium and heavy commercial vehicles are expected to grow at 20 per cent in short to medium term. He states that the lower diesel price is helping to improve the profitability of transporters. Goods and Service Tax (GST) implementation can provide a long-term boost to the CV industry?.