As per Frost & Sullivan, the small and light commercial vehicle segment in India may grow with a tremendous compounded annual growth rate of 18 per cent over the next five years. Now, Maruti Suzuki India Limited (MSIL) , with the development of a new 800 cc diesel motor taking place in the country, may consider bringing in a pick up vehicle. If the decision materializes, one can expect to see the entry of MSIL into the Light Commercial Vehicle (LCV) Segment during 2012-17, as reported by Economic Times (ET).
Currently the LCV segment is dominated by Tata Motors, where the Tata Ace takes up a significant 50 per cent of the market share. Even though the Omni has been used by MSIL for carrying loads since many years, a competitive offering was not available due to lack of an indigenous diesel engine. Reports are that either a new platform or the existing Suzuki pick up truck platform used in South East Asia could be modified to meet the challenging demands of Indian customers. This project has been codenamed 'AP', but while trying to contact MSIL, a spokesman said that no future product plans are being revealed.
Deepesh Rathore, Managing Director at IHS Automotive, said that the LCV segment is one of the fastest growing segments in the Indian Commercial Vehicle space, and it also has the capacity to produce the large volumes, as there is not much technology to be used. "Despite the entry of many players in small truck space, Tata Motors continue to enjoy over 50% of the market share and the others too are growing, that clearly shows that there is a room for more players. Maruti Suzuki can certainly be a strong challenger to Tata Motors with the widest possible reach, but having a suitable diesel engine is the key," he further added.
From April-November 2012, the mini truck and the pick-up truck segment (weight not exceeding 3.5 tonnes) together grew by 24 per cent over last year, with sales of 2,75,900 units. During the above period, market leader Tata Motors grew by 22.9% over the previous year, selling 1,57,183 units. Experts believe that Maruti could definitely pose a challenge to all other vehicle makers if it enters the market, as it has the largest reach in the market.
