The global recession on economy could not hit much on the sailing of the overall business of China and India till last year. Between these two countries China mustered a sensational growth to overtake the other super power US in the auto industry. In the event, another superpower Germany had to heed to the succumbing consequences as China secured the position as the second largest exporter in the world. This made Japan to lag vehemently. However, much to the dismay of China, now has started wresting the deeds in the whole commercial segment. The period upto May 2010 saw India blossoming in this commercial vehicles sector with a growth of 77% than 2009, which is more ahead than China’s 60%.
The President of Society of Indian Automobile Manufacturers (SIAM) was full of hope on the increasing demand in the Indian market for commercial vehicles especially with the launch of new commercial trucks. Of late, M&M seems to highlight the truck market which is normally dominated by Ashok Leyland, Eicher Motors and Tata Motors. The promising trend in the Indian market has drawn global companies like MAN, Hino Motors, Kamaz Vectra, Volvo, and Daimler. These companies rule the rooster with new models and compact designs in commercial vehicles. In a country’s economic growth, commercial vehicles
play a pivotal role and the rate of sale constitutes the net growth horizon. For the quarter ending March 2010, India’s GDP growth stood at 8%, which is expected to raise to 9.5% as predicted by International Monetary Fund. The industry analysts
attribute this growth to the logistics involved in migrating all sort of goods across the country. This results with the growth in the freight segment fetching Rs3 lakh crore business with the annual growth of 20%.
Though China remains the largest truck manufacturer in the world- in both medium and heavy – India is on the verge of posing a grave threat. China enlivens with three out of five largest truck makers in the world, with sale reaching 30.41 lakh units during Jan-May 2010. But India could see the sale of 1.23 lakhs; the net sale of trucks in China during the last year was 8.67 lakhs. India’s sale figure is 5.31 lakhs and is troubling the mood of China further. The Indian truck segment is giving much hope to 25-49 tonne trucks as evidenced from the statement of the director of Ashok Leyland. New arrivals loaded with latest technology are the solid factors behind this feat. The world famous Daimler has proposed to build a facility to make all localized truck in India. Above all the buyers have the cutting edge advantage of easy finance and money flow. China is, however, just observing all these factors till it made another giant move.