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Light Commercial Vehicle (LCV) Conversion Market in India, New Report Launched

Market Research Reports, Inc. has announced the addition of “LCV Conversion Market Potential Study in India” research report to their website


Lewes, DE -- (SBWIRE) -- 04/17/2015 -- The LCV market grew at a CAGR of 26% from the past three years.

Major LCV payload 1-2T segment companies are:

1.Tata Motors
- Flat bed tray e.g. Tata 207 DI
2.Mahindra & Mahindra
- Flat bed tray, e.g. Bolero Pik - Up
3.Force Motors
- Completely built box or mini bus, e.g. Traveller DV

The market shares of 1-2T payload LCV manufacturers are;

- Mahindra & Mahindra – 50%
- Tata Motors – 40%
- Force Motors - 10%

1-2T payload LCVs are available in the form of ready to use vehicles format which include:

- Flat bed tray
- Ambulance
- Mini bus
- Delivery Van

The estimated market size of 1-2T payload category in 2006-07 was 50,732 units.
The Indian government is enforcing limits on HCVs plying in city area. But the growth of LCVs in

1-2T payload segment is not as expected.
- It is because the payload sub 1T LCV (mainly Tata ACE) with its small size and flexibility to
commute in the city has cannibalized demand of 1-2T payload category.

In the LCV payload 1-2T segments, the most popular types of conversion made are:
- Dry box
- Refrigerated box

Tata Motors and Force Motors follow two different business models for the conversion process.

- Interviewed Tata dealers would not provide conversion service to the customers, but a few dealers provide contact details of conversion maker.

- Force Motors sells completely built conversion vehicles and in cases where minor modifications are done at the dealers premises.

- In case of special applications, like caravan, film shooting van, etc. dealers refer conversion maker information to the customers.

Tata Motors' dealerships, sales executives are allotted specific models for particular territories, whereas at Force Motors' dealerships sales executives can sell all models in their respective assigned territories.

Conversion market is dominated by small players and is unorganized. The most of the companies are smaller and driven by owners/promoters.

Randhawa Automobile is a conversion maker in the Mumbai region who mostly does the conversion for Tata Motors, Mahindra & Mahindra, Piaggio and Force Motors vehicles.

Ajit Automotive is a conversion maker in the National Capital Region. It does the conversion mostly for vehicles manufactured by Tata Motors, Eicher Motors and Swaraj Mazda Ltd.

Deccan Engineering is a conversion maker located at Hyderabad. Vehicles that are converted are mostly manufactured by Tata Motors, Eicher Motors, Ashok Leyland and Force Motors.

Vehicle base
- Engine, gear box, etc, that are manufactured by the automakers will be under automakers' warranty
- Other vendors' parts e.g. battery, are under the warranty of the vendor.

Conversion part: by the conversion makers
- Conversion part e.g. box leakage, etc, are under conversion makers' warranty
- Other vendors' parts e.g. refrigerator, is under the warranty of the vendor.

The above arrangement is same for both Tata and Force Motors.

Emission Standard

The government has decided to comply Bharat Stage III emission norms in metropolitan cities and Bharat Stage II norms in non-metro cities The Delhi government has made it mandatory for commercial vehicles to be CNG compliant.

For users in the logistics industry, payload has emerged as the most important criterion for vehicle purchase.

For users in the FMCG, service and retail industries proper temperature maintenance inside the closed container box is of utmost importance followed by faster turnaround time, since items that are transported are mostly perishable.

Vehicles preferred by the logistics industry are Tata Ace, 207 and 407, Traveller DV, Eicher 10.59 and Maruti Omni Van.

- Retail industry mostly prefers vehicles like Tata 207, 407, 709, Eicher 10.50, 10.75, 10.80.

- FMCG industry uses LCVs such as Tata 407, 709 and Eicher 10.50, 10.75, 10.80.

- Users in service industry like restaurants, hotel chains, etc vehicles that are commonly used are Maruti Omni Van, Tata 407, Eicher 10.59, 10.75, 10.80.

- Payload, price and service network have emerged as the three most important influencing factors in vehicle purchase decision making process.

Spanning over 101 pages, "LCV Conversion Market Potential Study in India" report covers the 1-2T – LCV Conversion Market in India, Current situation on, Tata Motors - Conversion Vehicle Business Flow, Dealer Analysis, Profiles – Conversion Vehicle Manufacturers, Conversion vehicles User Analysis, Conclusion & Recommendation, Appendix.

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