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Monday, June 24, 2024

Light Commercial Vehicles Market to Witness Significant Incremental Opportunity during 2024 - 2032

 

Light Commercial Vehicles Market

Light Commercial Vehicles Market are commercial vehicles with a gross vehicle weight (GVW) of up to 3.5 tonnes. They are also known as light trucks, vans, and minibuses. LCVs are used for a variety of purposes, including transporting goods and people, delivering packages, and providing services.

LCVs are popular among businesses because they are relatively fuel-efficient and easy to operate. They are also relatively affordable to purchase and maintain.

Light Commercial Vehicles Industry/ Innovations/ Related News 

August 18, 2020 ---- Etrio (India), an electric vehicle company, launched the country's first certified retrofitted electric light commercial vehicle (eLCV). The introduction of the eLCV is the company's first-of-its-kind initiative to transform and electrify intra-city logistics. The new green productive vehicle would not only re-shape the e-commerce logistics space but also have a deeper impact on the EV ecosystem.

The global Light Commercial Vehicles Market is growing rapidly, mainly due to the stringent government norms related to emissions. Besides, the rise in the global oil prices and rising penetration of downsized engines in electric light commercial vehicles (LCVs) drive the growth of the market. The proliferation of electric automobiles/EVs creates investment opportunities for manufacturers. Moreover, the demand for LCVs escalates the growth of the market.

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Global LCV Market – Competitive Analysis

Highly competitive, the Light Commercial Vehicles Market appears fragmented due to the presence of several well-established players. To gain a larger competitive share, industry players initiate strategic approaches such as mergers & acquisitions, innovation, brand reinforcement, and expansion. Industry players strive to offer an extended range of heavy-duty LCVs. Due to the expected innovations and improvements in product, service, and product innovations, the market is soon expected to witness an intensified competition. 

Major Players: 

Players leading the global LCV market include Volvo Group (Sweden), Daimler AG (Germany), Dongfeng Motor Corporation (China), Tata Group (India), Volkswagen Group (Germany), Ford Motor Company (US), General Motors (US), Groupe PSA (France), Groupe Renault (France), and Hyundai Motor Company (South Korea), among others. 

Electric vehicle start-up has developed this eLCV using its scientific retrofitment process revives. The new eLCV can increase the driver owner's earning by saving almost 60 percent of the operational expenses, making diesel guzzling LCV into a green productive vehicle. The manufacturing facility at Hyderabad can churn out 5,000 such vehicles per annum.

Here are some examples of LCVs:

  • Pickup trucks
  • Vans
  • Minibuses
  • Three-wheelers
  • Small trucks
  • Commercial SUVs

LCVs play an important role in the economy by helping businesses to transport goods and people efficiently and affordably.

Here are some of the benefits of using LCVs:

  • Fuel efficiency: LCVs are typically more fuel-efficient than heavy-duty commercial vehicles.
  • Maneuverability: LCVs are easier to maneuver than heavy-duty commercial vehicles, making them ideal for use in urban areas.
  • Affordability: LCVs are relatively affordable to purchase and maintain.
  • Versatility: LCVs can be used for a variety of purposes, from transporting goods and people to delivering packages and providing services.

If you are looking for a commercial vehicle that is fuel-efficient, maneuverable, affordable, and versatile, then an LCV is a good option to consider.

What are Electric Light Commercial Vehicles?

Electric light commercial vehicles (ELCVs) are light commercial vehicles (LCVs) that are powered by electricity. ELCVs are becoming increasingly popular as businesses and organizations look to reduce their carbon footprint and save money on fuel costs.

According to Market Research Future (MRFR), the global Light Commercial Vehicles Market is projected to grow at approximately 4.5% CAGR during the anticipated period (2019 – 2025). The LCV segment holds enormous potential for the recovery of the commercial vehicle industries.  The LCV industry is to account for over 40% of sales volume in FY20, growing continually during the years to come. The market is to witness increasing product launches, which would expand the customer base looking for quality and profitability.

LCV manufacturers are developing robust product offering equipped with BS-VI engine, featuring customer-centric offerings on technology and driver comfort, while being contemporary and futuristic. Companies strive to expand their LCV offerings, a best-in-class payload capacity available through physical and digital platforms. While the medium and heavy commercial vehicle (MHCV) segment continued to remain under stress, the decline was narrowed by growth in LCV demand.

Commercial vehicle (CV) sales seen the barometer of economic activities, dropped by 7% year-on-year (y-o-y) in August, while the small and light commercial vehicle (SCV and LCV) category saw an uptick backed by demand from last-mile delivery applications and the rural markets. On the flip side, the demand for downsized engines, which increases the overall LCVs prices, is a primary factor forecasted to hamper the market growth.

Nevertheless, emission norms and technological innovations expected in the recent future would support market growth throughout the review period, presenting cost-competitive solutions. Also, the burgeoning eCommerce industry is projected to substantiate the growth of the market.

Global Light Commercial Vehicles Market – Regional Analysis

North America leads the global Light Commercial Vehicles Market. The largest market share attributes to the rapidly growing electric vehicle industry in the region. The spurring demand for lightweight energy-efficient automobiles in the region fuels the sales in the market. Besides, e-commerce in the region drives market growth, leading to the strong growth of the transportation industry. The North American LCV market is projected to retain its dominance throughout the estimated period. 

The Asia Pacific region stands second in the global light commercial vehicle market. The market is especially driven by stringent government regulations for emissions from commercial vehicles. Additionally, rising demand for lightweight fuel-saving commercial vehicles accelerates the sales in the regional market. The rising automotive production in the already burgeoning automotive industry and the availability of innovative technologies foster the market growth in the region.

Furthermore, the strog presence of several notable players and increased production capacity in terms of volume and new facilities boost the regional market growth. China, India, and ASEAN countries hold significant shares in the regional market, growing with the demand for lightweight commercial vehicles with enhanced fuel efficiency. The APAC LCV market is estimated to increase at a significant pace during the assessment period.

Europe also holds a substantial share in the global Light Commercial Vehicles Market. Factors such as the presence of the well established automotive industry in the region and innovation in electric vehicles act as key tailwinds for the market growth in this region. Substantial R & D investments by the existing major industry players required for product and technology developments fuel the sales in the Light Commercial Vehicles Market. The European LCV market is anticipated to grow at an impressive CAGR during the review period.

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