Transformation in India’s logistics sector with the e-commerce boom is driving growth for the commercial vehicle segment which is increasingly witnessing growing consumer preference for connectivity solutions that help business optimisation.
The commercial vehicle (CV) segment, which is the barometer of an economy and an indicator of the health of its automotive industry, is presently undergoing a massive transformation in India as the country witnesses rapid changes in its logistics sector.
With an e-commerce boom that has swept the country with goods getting delivered in every nook and corner of India, the transformation in the logistics space is emerging a huge growth catalyst for the CV industry. Atan event – Indian Commercial Vehicle Conclave – organised by the Confederation of Indian Industries (CII) in New Delhi on July 20, industry leaders and experts deliberated on the current challenges, and future opportunities that lie ahead of the sector, which is expected to grow at a CAGR of 8 percent by 2028.
The second edition of the CII Indian CV Conclave emphasised upon the CASE megatrends, and highlighted sustainability and digitisation as the core areas of action for the CV industry. According to Girish Wagh, Executive Director, Tata Motors, “While CASE (Connected, Autonomous, Shared, Electric) has revolutionised the passenger vehicle segment, it is now gaining momentum in the CV space. OEMs are actively charting their product strategies while keeping the CASE megatrends, which offer immense potential to transform the segment.”
“Commercial vehicles in India are increasingly witnessing growing demand for connectivity features since the BS-VI switchover, and with ADAS and autonomous driving technology to enhance safety, we need to develop them by virtue of collaborations or in- House,” he added.
Wagh, who was the Chief Guest at the day-long event in New Delhi also pressed upon increasing the level of digitisation which is opening new business opportunities for the CV industry. “Digitisation of transactions is leading to the generation of data, and with data analytics, we will offer end-to-end solutions to customers,” he said.
Touching upon sustainability, Wagh said that the CV industry needs to contribute to India’s net-zero targets, focus on circularity, and also preserve the nation’s biodiversity. “Commercial vehicles currently account for 18 percent of the overall carbon-dioxide emissions in India, and the industry is working on various technologies like electrification, alternate fuels, and hydrogen, he said.
Wagh further added that with the harmonisation of regulations, growing electrification, and the increasing penetration of technology, the Indian CV industry has the potential to tap global opportunities as well.
“The CV industry contributes about 8-10 percent of India’s GDP, and as India continues to be the fastest growing economy in the world, we are liable to shape the direction of this growth,” he said.
Need for hardware-software synergies
According to Anjali Singh, Chairperson, CII Haryana and Executive Chairperson, Anand Group, “The CV sector is undergoing massive transformation globally and India is not an exception. The transformation is pervasive across the industry and much of it is being driven by Industry 4.0 and the continued digitisation of the entire value chain. Online retailing, and logistics services along with implementation of BS-VI emission norms, have significantly transformed the sector.”
“In the coming years, the CV industry is likely to register faster growth in the BRICS countries, Asia, Latin America, and South Africa. While these markets demand high reliability, the focus is not so much on comfort features in these heavy-duty vehicles. We in India must change this mindset, and aim to offer more features while ensuring reliability and cost competitiveness, Singh added.
Deepak Jain, Chairman, CII Northern Region and CMD, Lumax Industries, said, “The automotive industry is transforming not just in India but globally, and we are finding new ways of offering sustainable mobility for 1.5 billion people in the country. The government, through the various PLI schemes, and localisation initiatives, has done well on the policy front.
“With vehicles becoming more connected, our supply chains also need to come together. Lightweighting, electrification as well as electronification, are huge opportunity areas, and while we lag behind certain countries in the area of electronics, we will need to increase our localisation in these areas. India has great component manufacturers as well as software providers, and the time is right for the two to come together and offer value-added solutions to the customers,”Jain said.
Strengthening regulations determining safety
Vinod Aggarwal, President, SIAM and MD and CEO, VE Commercial Vehicles, said that with the Indian economy projected to grow from the current US$ 3.5 trillion to US$ 5 trillion by 2030, the future of the CV industry is extremely bright, as the movement of goods and services will be done by these vehicles. Aggarwal also talked about the industry’s swift adoption of international standards, for instance, safety standards with improving infrastructure.
“India is adopting world-class standards such as ABS, roof and cabin crash norms, rollover protection for CVs, along with speed restrictions. Improving productivity will require enhancing driver comfort and convenience, and that is where AC cabins are being talked about. With respect to connectivity, the technology allows OEMs to offer preventive maintenance and fuel efficiency savings to fleet operators by tapping into the driving behaviour of truck drivers,” Aggarwal said.
Sandeep Kalia, MD, Valvoline Cummins suggested that for heavy-duty long haulage vehicles with diverse duty cycles and applications that are not best served by BEV Platforms, hydrogen seems to be a better choice than battery. Kalia revealed how the lubricants major is now working on heat-transfer fluids with the changing propulsion technologies in commercial vehicles.
The event saw industry leaders come together and strike up conversations, share perspectives and the course of action for determining the path to sustainable growth for India’s CV sector.