Business Daily from THE HINDU group of publications
Sunday, Jun 25, 2006
Business Daily from THE HINDU group of publications Sunday, Jun 25, 2006 |
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Industry & Economy
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HCV/LCV/Tractors Corporate - Outlook MNCs driving into Indian commercial vehicles space Neha Kaushik
New launches Hyundai to roll out the one tonne light commercial vehicle Porter in India. Swedish firm Scania has also indicated its intent to enter the domestic market. According to market buzz, Swaraj Mazda is likely to roll out vehicles under the Isuzu brand.
New Delhi , June 24 The sustained double digit run in the commercial vehicles category seems to have caught the attention of a number of multinational players who are now charting an entry into the Indian market. While Korean major Hyundai has said that it may roll out the one-tonne light commercial vehicle Porter in India, the Swedish firm Scania, in which Volkswagen is a significant shareholder, has also indicated its intent to enter the Indian market. DaimlerChrysler India formally launched its Actros range of commercial vehicles on Friday, while according to market buzz Swaraj Mazda is likely to roll out vehicles under the Isuzu brand. Earlier, German major MAN signed a 30:70 joint venture agreement with Force Motors to manufacture heavy trucks while Mahindra & Mahindra had signed a 51:49 agreement with US major ITEC to produce medium and heavy commercial vehicles. According to analysts, the fast paced growth in commercial vehicles is being spurred by rapid industrial growth and infrastructure development. The segment grew by over 50 per cent in the last fiscal. It comes as no surprise then that the Chief Executive of Scania had recently stated the company's intention to focus on India. "We will go into India in one way or another, but I can't say more. There is no doubt that the Indian market is probably right now in a development that will create a niche in the market that can justify an investment in the type of products we have, both trucks and buses", the Scania's Chief Executive, Mr Leif Ostling, had said. According to market buzz, Scania may enter the Indian market through a tie-up with a local commercial vehicles manufacturer. Hyundai, meanwhile, had said that it was studying the feasibility of launching the Porter, with the Tata Motor's LCV Ace turning out to be a success. In fact, the LCV segment has grown by about 20 per cent in the last fiscal, primarily due to high sales volumes of the Ace. Hyundai, however, said its final decision on the launch would hinge on the price factor, as the Porter can be competitively priced only if it is manufactured locally.
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