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How does the logistics sector aid in the sales of commercial vehicles?

  • Ankit Mirani |
  • Transporter |
  • 28/10/2020

The logistics sector in India is developing rapidly, and the interaction of infrastructure, technologies, and a modern variety of service suppliers will decide whether the industry will help its customers reduce their logistics costs and deliver effective services. With growing market demand and the resulting increase in global trade, the position of infrastructure provision in rail, roads, warehouses, and logistics is crucial to the success of the economy.


The logistical challenge in the current scenario is overwhelming, starting from building infrastructure, handling the framework of the various supply chains to revolutionizing industrial policies to promote the optimal production and transportation of goods and services. This is achieved by implementing effective strategies and techniques to improve productivity by proper management of logistics networks. It must be mentioned that the logistics industry in India is transforming itself interestingly by utilizing advanced business models. 


In India, goods are mainly transported by road and rail. Road transport is said to be controlled by private operators, while the central government manages rail transport. With the second largest network in the world, road transport accounts for 65 percent of freight traffic. The road is preferred because of its cost-effectiveness and versatility. Rail is preferred because of the inter-process communication facility and ease of transport of ship containers and wooden crates. Freight transport in India is mainly dominated by road transport. The transportation through road medium accounts for 59 percent of freight movement. The Indian commercial vehicle (CV) and logistics sector are on a gigantic-shift in terms of innovation strategy and the industry.


Indian Commercial Vehicle Market-


India, the 7th largest CV manufacturer globally, accounts for around 3.5% of the global CV production and is one of the largest exporters of commercial vehicles. The total sales volume of the commercial vehicle industry is expected to register a CAGR of 10% over FY 2017-20. The Heavy Commercial Vehicle segment is expected to grow at 10%, while the Light Commercial Vehicle segment is expected to grow at 9%.


The future trend of the logistics sector is influenced by the Indian Commercial Vehicles market. The Indian Commercial Vehicle market currently stands at more than 1 million units and is worth USD 14 billion in 2019.


Based on the product type, the Indian commercial vehicle market can be segmented into Light Commercial Vehicles (LCVs) and Medium & Heavy Commercial Vehicles (M&HCVs). They are further categorized into Load / Goods or Passenger Carriers basis their usage.


The significant Indian Trucks in use:

  • Industry Structure - Goods Carrier

  • Application Split for Truck Industry (SCV, LCV, MCV, and HCV)

  • Application by GVW Segments

  • Parcel Logistics

  • Major Core Segments of Parcel Logistics

  • Construction Materials

  • Fruits, vegetables, and Perishables

  • Agriculture Products

  • Cement

  • Tankers and Bullets

  • Industrial Goods

  • Automotive

  • Mining

  • Bus Industry


Road transportation commercial vehicles are in extensive use. TransportGanj is a digital transport network, which is said to be the first type of transport transparency platform. The business aims to create a revolution in the logistics sector by focusing on the latest technologies and safety protocols. The service to book freight online to professional drivers, cargo services has been excellent in the region.


Increase in Sale of Commercial Vehicles-


ECommerce companies have changed the direction of commercial vehicles. From small, medium to large and heavy vehicles, the eCommerce sector has its hand on. The logistics sector of eCommerce companies has been on the rise. Even during the pandemic times, these companies have managed to satisfy customers' needs greatly. This way, they have assisted in the sales of commercial vehicles. In 2019, commercial vehicles recorded the fastest pace of growth in domestic sales, at about 18 percent across the South Asian country. 


The market has shifted from just a service provider to the role which provides edge to edge solutions to its customers. Thus, all these advancements and growth have paved the way for the logistics industry in the coming years. As a result, there is an enormous rise in sales of commercial vehicles from everyday needs to commercial products in all respects.

About Author

I'm Ankit Mirani.
Founder of Transportganj.
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