Tata Motors announced plans to launch a new mini-truck for the Small Commercial Vehicle (SCV) segment within the next month. The new vehicle will be targeting the segment between Tata’s Ace mini-truck and their Super Ace pickup truck. The SCV segment, which comprises sub-1 tonne payload mini trucks and above 1-tonne payload pick- ups is below the 3.5 tonne (gross vehicle weight) Light Commercial Vehicle segment. The segment has become a competitive segment as more companies have launched vehicles for the market. Tata holds an estimated 48% share of the market.
In India and other countries in the region SCVs are used for the delivery of goods in the last mile of the distribution network. This service need often offers an opportunity for entrepreneurs to start their own business as a local shipper. They typically will get financing to purchase a vehicle. Despite a sluggish economy of late the, market segment is expected to grow as penetration in rural areas is low and when compared to other developing countries, India’s use of SCVs is low as well. Learn more: Thehindu.com
Comment: The SCV market in India is dominated by Tata and other local or regional manufacturers. It should be noted though that Polaris has started to enter other vehicle segments in India. In the future there could be potential for their GEM line or some of their vehicles from European acquisitions for use in this market. For electric vehicles, the ability of the local electrical grid to provide reliable charging opportunities, could be a significant hurdle though.