Indian CV makers hot favourites abroad  ( November '12,2005, FE)

Commercial vehicle (CV) makers planning to enter India may soon run out of local partners here as more and more Indian CV makers are signing deals with vehicle makers from across the globe.

While light commercial vehicle (LCV) maker Bajaj Tempo has joined hands with Man Trucks of Germany to make medium (MCV) and heavy commercial vehicles (HCV), M&M has already tied up with International Trucks and Engineering Corporation (ITEC) to make MCV and HCV. Tata Motors already has 21% stake in Spain based Hispano Corp and will step up its stake in the latter. Ashok Leyland has already signed with Iveco of Italy to bring in its range of CVs into India. Unlike passenger car makers, global CV majors have been relatively slow in entering the Indian market, blame it on the poor infrastructure. Now with successive governments at the Centre giving prominence for the development of roads and infrastructure coupled with the boom in the economy, CV makers across the world are waking up to India.

“The transport economics of India is peculiar and only vehicles with specifications that can adjust with it would work in India. The CV makers overseas have started realising it and are now joining with Indian manufacturers or engineering their products to suit the Indian needs,” says R Seshasayee, MD, Ashok Leyland. It also caters to a diverse group ranging from truck drivers to operators who own many trucks and to address their needs the skills of the local manufacturer becomes essential.

“The CV market in India has been witnessing a 25-30% growth for the past few years which is another reason why the CV makers are inclined to enter India,” according to Kalpesh Parekh, Senior Analyst, ASK Raymond James.