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Scaling New Heights and Heading Towards a Promising Future February 2019 ISSUE | Vol. 34 Commercial Vehicles Segment in India: Scaling New Heights and Heading Towards a Promising Future UPCOMING EVENTS: CREDAI PROPERTY SHOW | IIFJAS HYDERABAD | FURNITURE FAIR 2019 | GARVI GURJARI NATIONAL BUYER SELLER MEET | MEDICALL | FRO EXPO 2019 | FURNITURE AND INTERIOR EXPO 2019 | GRUHAPRAVESHAM 2019 © All rights reserved. ‘Point of View’ is a bi-monthly from HITEX. www.hitex.co.in bhongir A perfect day-out in a historical fortress The fort sits on a unique egg-shaped rock hill more than 500 feet high. Fort Constructed in 50 acres, the fort can be seen bounded by two massive rocks at both the points of entrance of the fort for tight security. At the beginning of the steps is a Hanuman Temple. Kannada and Telugu inscriptions in the fort highlight the lifestyle of the people of that era. The inscriptions, the architecture and some sculptures found in the fort reveal that the fort was ruled by the Chalukya dynasty for a long time and then by the Kakatiya dynasty. In the 15th century, the fort was ceded to the Bahamani Sultans and then was taken over by a local governor. The stone wall, the steps through the granite archways and the crumbling stucco ruins of the later age, still adorn the place. The splendid historical fort with the awe-inspiring rock and the aesthetically fortified courts which have stood the ravages of time stir the imagination. A moat that encircles the fort, a vast underground chamber, trap doors, an armoury, stables, ponds, wells etc., make for fascinating viewing. The fort is associated with the rule of the heroic queen Rudramadevi and the countryside is simply breath-taking. The Bala Hisar or citadel on Bhongir Fort was built on an isolated monolithic rock by the the top of the hill gives a bird’s eye view. It is believed that there once was an underground corridor connecting Bhongir Fort with Golconda Chalukya ruler Tribhuvanamalla Vikramaditya VI in the 1076 Fort. and was named after him as Tribhuvanagiri, later renamed as Pollution-free, less crowded and very close to Hyderabad city with easy transport, a trip to Bhongir Fort is a perfect day-out when visiting Bhuvanagir also known as Bhongir. Hyderabad. DISTANCE TRAVEL from HITEX: 100 02 Time: Kms hrs ATTRACTIONS IN TELANGANA Thanks to the growth in ecommerce and retail sectors, the logistics explosion in India in last five years has been immense and elevated the flow of goods creating a high demand for light, medium and heavy commercial vehicles. India is currently the 7th largest manufacturer of commercial vehicles and is expected to become the 4th largest by MESSAGE 2020. Customer-friendly loans from nationalized and scheduled banks and financial institutions are boosting FROM COO the sales of commercial vehicles. There is a great increase in exports – especially to new markets in Africa, Middle East and South Asia. Speaking about the events at HITEX, in the last two months we have catered to signage & printing, senior services, cement & construction, kids care, pet care, medical equipment, aerospace, logistics, event décor and Businesses of all sizes depend on the commercial catering, furniture and aqua farming sectors. Our own vehicles segment to deliver their products safely shows 13th Hyderabad Kids’ Fair and PETEX INDIA’18, to all corners of the nation. Commercial vehicles which were held in December 2018, saw great success. handle much more cargo than trains, ships or planes. Goods can never travel from rail yards, ports The diverseness of events at HITEX makes it one of the and airports to their final destinations without the most preferred venues in India for events of all statures. We have some of the biggest events happening in the commercial vehicle services. The segment is one next two months at HITEX. of the key components that shape the economy of India. We have more updates on these and what’s happening at HITEX in the pages inside. Commercial vehicles make their economic contribution by delivering raw materials to manufacturers and then transporting the finished products across the supply chain. Commercial vehicles penetrate into areas where other forms of transport cannot, thereby contribute towards K. V. Nagendra Prasad the integration of backward areas into the national COO, HITEX mainstream. 4 Point of View bi-monthly | February 2019 ISSUE | Vol. 34 www.hitex.co.in 5 Commercial Vehicles Segment in India: Scaling New Heights and Heading Towards a Promising Future Commercial vehicles segment is an important Trucks have been riding the growth in the medium term. The implementation of the GST component of the economy and the backbone M&HCVs space with a growth rate of 100% Key factors influencing and restrictions on truck overloading in certain of the trade. Commercial vehicles segment in in vehicles with 35-40 tonnes and saw total states have helped truck sales in FY 2018. India has gained high momentum over the last sales of 27,936 units. The growth is driven by the sector 2-3 years and has emerged to be the 7th largest urbanization, growth in the rural economy, rising The strong demand for commercial vehicles manufacturer of commercial vehicles in 2017. incomes and surging e-commerce business. Growth in rural demand in FY 2018 has not only improved capacity To cater to the increasing demand of trucks in utilization levels for many commercial vehicle The rural economy, representing 69 per cent As per the Society of Indian Automobile India, manufacturers are investing heavily to roll dependent companies but also resulted in of India’s population, is worth USD 1 trillion Manufactures (SIAM) data, the commercial out BS-VI compliant trucks by April 2020. Buses expansion plans. and contributes 45 per cent to GDP. The vehicles segment posted a growth of 19.9 per - especially private, stage-carriage, tourist and small & medium enterprises account for ~30% Owing to favourable growth outlook and BS- cent YoY in 2018. MHCVs grew by 12.5 per schools are expected to record around 11 per while agriculture contributes ~15% to GDP. VI norms, commercial vehicle companies are cent with increase in infrastructure projects cent growth. while LCVs grew by 25.4 per cent owing to Improving farm income, hike in minimum planning cumulative investments to the tune improvement in semi-urban and rural consumer Furthermore, urbanisation and expansive support price and announcements on farm of over Rs.50 bn for the next two years. markets with two consecutive years of good infrastructure development is creating a huge loan waiver by various states and expectation monsoons and a stable interest regime. demand for heavy duty construction and on good monsoon rainfall for the third mining vehicles throughout India. Awarding of consecutive year resulted in growing rural Road ahead Light Commercial Vehicles (LCVs) and Medium contracts by the National Highways Authority of demand. This was also visible in improvement & Heavy Commercial Vehicles (M&HCVs) Improved infrastructure in various parts of India rose 70 per cent to around 7,400 km in in volume growth for FMCG companies. the country will further drive in growth in the have posted growth of 25.42% and 12.48% fiscal 2018, much of which are for execution in respectively, with total sales of over 8.56 lakh Nielsen report reveals that rural market’s heavy-duty truck segment. Experts believe fiscal 2019. The government is likely to focus on that both LCVs and M&HCVs will see large units in India. major river linking projects in its irrigation thrust volume growth for FMCG companies outpaced urban market during FY2018. During the year, growth in domestic market as well as exports M&HCVs, which cater to logistics companies and housing construction under Pradhan Mantri volume growth in rural market for commercial to meet the rising demand in Middle-East, Sri for long-distance transport and companies Awas Yojna. These schemes will also boost Lanka, Bangladesh, Africa and South America. in infrastructure, metal and mining sectors, demand for commercial vehicles. vehicles clocked 9.7 per cent YoY compared to 8.6 per cent YoY in urban areas. Market leaders including Tata Motors, Ashok contribute around 3 per cent of the total Electric commercial vehicles are expected to Leyland and Mahindra & Mahindra are equally commercial vehicles sales. LCVs cater to short grow at 100% by 2024, owing to the growing focusing on domestic demand and expansion -haul transportation and last-mile connectivity need for controlling greenhouse gases emitted Scrappage policy, GST and in the new markets in Asia, Africa and the and contribute the major chunk with around 54 by vehicles. To encourage the use usage of restrictions on overloading Middle East. per cent of the total sales. electric commercial vehicles, the Government With Government’s aim to make India a of India had launched FAME — Faster Adoption The proposed policy of scrapping of vehicles The SIAM data indicates that the commercial manufacturing hub, growing investments vehicles segment is likely to continue its growth and Manufacturing of Hybrid & Electric Vehicles older than 20 years is helping the growth and demand in domestic and international momentum around 10-12 per cent in 2019. The programme in 2015 and sanctioned `437 crore of the segment. Experts believe that the markets, Indian commercial vehicles segment MHCVs market is expected to grow in around 9 for the procurement of 390 electric buses for 11 implementation of the policy would be a is poised to scale new heights in the years to to 11 per cent while LCVs market is expected to major cities. step in the right direction and is expected come. grow around 10-12 per cent. to support the growth momentum in near to 06 Point of View bi-monthly | February 2019 ISSUE | Vol.
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