Premium Truck Sales Enter Fast Lane on Core Growth

The segment is expected to grow 50% this year

LIJEE PHILIP MUMBAI

    Sales of premium trucks are replicating the successful run enjoyed by top-end passenger cars, as transporters see sense in buying larger and more fuel-efficient vehicles to keep pace with the fast-growing infrastructure sector.
A slew of high-end truckmakers such as Daimler, Volvo, Mahindra Navistar, Scania and homegrown Tata Motors Prima and Ashok Leyland’s U truck are vying for a share of the premium pie that is expected to grow 50% this year.
Experts said, sustained export growth, expansion of highways and need for better logistics will see sales of highend commercial vehicles touching 11,000 this year. Premium trucks handle better, are safer, comfortable and more fuel-efficient. Priced between . 20 lakh and . 70 lakh, these high-end trucks sold over 7,000 units in 2010, growing nearly five-fold in three years.
Right now, these trucks form a fraction of the total commercial vehicle sales, which grew 14% to 1.72 lakh units during April to June. “Highend truck sales are growing at a faster pace, but the base is still low,” said Amol Sandil, EVP, Hino Motors India, which recently launched a range of high-end trucks in the country.
Sales of tippers, tractor-trailers, multi-axle and rigid trucks are up, following an increase in container freight, mining and construction activity.
Experts said, sales growth of high-end trucks will see some products in the market, such as 16- and 20-tonne mediumand heavy-commercial vehicles, being replaced by 25-, 35-and 40-tonne vehicles.
“Transporters are becoming revenue-oriented, instead of cost-oriented,” Mahindra Navistar managing director Nalin Mehta said, and added that the fleet operators are now looking at carrying more load and doing more distance and not worrying about price and fuel cost.
“Fleet operators’ buying behavior is changing from acquisition cost to total cost of ownership,” said Somnath Bhattacharjee, EVP-sales, marketing and aftermarket president, Volvo Trucks.
Truck drivers, too, have started demanding more comfort, safety and quality. “Operators buy these trucks for driving comfort at top speeds,” Ashok Leyland executive director Rajiv Saharia said. The Chennai-based truck-maker recently launched the U range of high-end trucks.
However, some fleet operators are skeptical about the return on investment. A Mumbai-based operator said it was still a niche product for certain high-end applications.
Hot Wheels Sales of high-end
commercial vehicles will touch 11,000 units this year, say experts
Currently, these trucks
form a fraction of the total commercial vehicle sales, which grew 14% to 1.72 lakh units during April to June