The Hindu Business Line : Cargo market favours 4-wheeler light commercial vehicles

New Delhi, July 14 Three-wheeler cargo vehicles’ sales is likely to drop further in urban markets, as the country witnesses a shift in demand from three-wheeler goods carrier to the fast moving new breed of light commercial four-wheelers.

Production of three-wheelers, which consistently went up from 2001 till 2006-07, declined for the first time in 2007-08. Between 2001and 2007, three-wheeler production rose from over two lakh vehicles to approximately over five lakh, according to the Society of Indian Automobile Manufacturers.

However, the year 2007-08 saw its sales plummet as Tata Motors’ sub-one tonne cargo four-wheeler vehicle was launched the previous year.

Then came others such as the Ape Truk of Piaggio, in the same category, heralding a further erosion in sales of the three-wheeler goods carrier.

"Ever since Ace was launched, the three wheeler cargo sales have been declining. We expect a similar trend to continue over the coming years due to safety, comfort and load carrying capacity that light commercial vehicle offers," said Mr Prakash Telang, Executive Director, Commercial Vehicles, Tata Motors.

Commercial vehicle companies also see the spurt in demand for four-wheeler cargo vehicles as transporters become more suave and conscious of the changing trends, styles and comfort.

“Though the cost of a three-wheeler cargo vehicle is almost half of the four-wheeler light commercial vehicle with equal load carrying capacity in terms of weight and the operating cost per kilometre/per litre also being much lower, the advantage that a four-wheeler offers, in terms of volumes that can be transported and distance covered, makes it the preferred choice,” explained Mr Ashutosh Khosla, Marketing Director at Piaggio.

The other reason pushing sales of four-wheeler cargo vehicle is the higher flexibility it offers for multiple uses.

“With the hub and spoke model for delivery emerging in various cities, demand for light cargo vehicles is increasing. Moreover, city regulations also prevent three-wheelers from making inroads in certain areas, thereby pushing four-wheeler sales,” said an industry official.

However, auto makers contend that despite the newer category of light commercial vehicles rapidly occupying the urban landscape, three-wheeler cargos may find a new market in emerging rural areas.