As per the recent report of Ernst & Young on 'Mega trends shaping the Indian commercial vehicle market', the commercial vehicle market in India will witness a double fold growth over the period of next five years. The reports says that the Indian commercial vehicle market will reach-up to 1.6 million units by year 2016-17, thanks to the factors like rise in the infrastructure spending, entry of a number of multinational players in the country and rapid urbanization.
The report further elaborates that India is likely to witness the emergence of over six cities with a population of over 10 million and 63 cities with a population of over 1 million by year 2025.
While further elaborating on the report, Mr. Rakesh Batra, partner & national leader, automotive practice, Ernst & Young, said, "By 2012, one expects to have six-laning of 6,500 km and a development of 1000 km of expressways. Of the 66,590 km of National Highway, only 38% are single-lane, leading to logistics inefficiencies as trucks can cover only 250 km per day vs. 600 km globally.”
He added that the development of road infrastructure enables OEMs to introduce higher power vehicles. By 2012, the modernization of roads under the NHDP (National Highway Development Program) is expected to involve a total investment of US$47.2 billion.
