Introduction

Commercial Vehicles broadly classified into 2 categories:

Medium and Heavy Commercial Vehicles
Officially 10 tons In India used for upto15-20 tons

Light Commercial Vehicles

Officially 1.5 tons Could actually carry upto 2 tons

Medium and Heavy commercial Vehicles Market

Mainly two players:
Tata Motors
75% of the market i.e. 45,000 vehicles p.a. Strong presence of distributor network in whole India except southern states

Ashok Leyland
25% of the market i.e. 15,000 vehicles p.a. Strong presence in Southern States but less penetration in Northern India

Cheap Operating Cost courtesy low priced nongenuine parts easily available in the market for both of the products

Light commercial Vehicles Market

Before entry of the new entrants

Mainly two players:

Bajaj Tempo later known as Force
Market size of 12,000 vehicles p.a.

Mahindra & Mahindra

Market size of 8,000 vehicles p.a.

Light commercial Vehicles Market

Entry of the new entrants
Four new players entered the market:
DCM Toyota Allwyn Nissan Swaraj Mazda Eicher Mitsubishi

Advantages of the new products over the already available products in LCV segment:
Rugged Payload of 2.5 3.5 tons but could carry upto 6 tons Reliable Faster Safer Comfortable for the drivers thus allowing them to drive it for a much longer period continuously

Present Scenario in the market before the launch of Eicher Product

Three products from three new brands have already been launched Sales for the new products have not been as expected Artificial demand created long waiting period which made the real buyers to pay a premium on the already higher priced products Well established dealers not ready to invest in any new product in the already poor performing product segment