CLASSIFICATION

COMMERCIAL VEHICLE IN
BANGLADESH/
ACKNOWLEDGMENTS

Abdur Rahman Sagor

Asst. Manager , Recovery, DMV
Energypac power generation Ltd.

17/02/2014
 Model basis of Application
We’ve addressed things like fuel economy, weight,
and driver environment. Next, we’ll see technologies
such as collision avoidance systems, stability systems
– anything which can reduce their [the operator’s]
overall costs further.

We definitely put a lot of effort into developing

standardized cross-segment components for our
trucks. In the end, we have to account to very
specific end user requirements across all markets
and these set very tight limits to standardization.
Just take our Worth plant. Of course, such a high
degree of differentiation is not necessary in the
emerging markets.
 Outline of the Presentation

Domestic Commercial Vehicle Industry- Volume Trends

Overcapacity in the trucking system Industry volume trends
in M & H CVs, LCVs and Buses Trend in macro economic
indicators Trend in freight rates and fleet operator viability
Key Trends in the CV financing environment Market share
trends and competitive landscape Trend in profitability
indicators of CV Outlook.
 INTRODUCTIO
N
Commercial vehicle
One thing is for sure:
sales are spurred on by
the markets will
economic growth going
converge – not today,
in hand with the rising
but early enough to
demand for the
start thinking about
transport of goods.
which winning
Of course, this is
strategies could guide
common knowledge –
the way to a profitable
but just perfectly
and sustainable global
describes the ups and
truck business model
downs in the truck
for tomorrow.
industry over the last
couple of years.
 DESCRIPTION
Light commercial vehicles (LCV) are goods and carriage
vehicles with a gross vehicle weight (GVW) that varies from
one region to another. In order to ensure international
LVC comparability, all LCVs referred to in this report have a GVW
below 6 tons (t).

Heavy commercial vehicles (HCV) are commercial vehicles

carrying goods with a gross vehicle weight (GVW) greater
than 6 tons (t).
HCV

A Full-Line Manufacturer (FLM) is a truck manufacturer

producing and selling commercial vehicles in both the LCV
FLM and the HCV segment

Gross vehicle weight (GVW) is the maximum allowable total

weight of a fully loaded commercial vehicle. This includes
the actual vehicle weight as well as passengers, cargo and
GVW fuel..
 Overview Of the China Commercial Vehicles market

Vehicle manufacturers groups

The top five manufacturers in China –Dongfeng, FAW, CNHTC,
Torch and Beijing Automotive – command almost 70 % of truck
sales

FULL-LINE(LCV+HCV)

• BAIC Chengdu Xindadi

• China First Tractor
• Dongfeng
• FAW
• Fujian
• Lifan Group Nanjing
• Automotive SAIC
• Shuguang Group
• Zhengzhou Yutong Coach
 Leading players in key regions and China markets Share
(GVW > 6 tons)

BAIC
7.5

TORCH
7.8

CNHTC
13.7

FAW
18.8

DONGFENG
20.6

0 5 10 15 20 25

1 First Automotive Works

2 China National Heavy Duty Truck Corp.
3 Volvo, Renault Trucks, Mack
4 Beijing Automotive Industry Corp.
(Auman, EuroV, Beiqi Foton)

Source: KPMG International , IHS Automotive,

 Overview Of the India Commercial Vehicles market

The top three Commercial Vehicle

Manufacturers in India are :

1. TATA Motors(58.5%),
2. Mahindra and Mahindra (15.7%)
3. Ashok Leyland (11.0%)
 Indian Market share and market growth of the 9 largest
New Light commercial vehicle groups
45
42
40.2
40

35

30

25

20

15

10
7.6

5 3.5
2.7
1.4 1.1 0.8 0.5
0
s ra ta s ) o s ) r
or or M gi or ki ie
t in
d yo t G g t u m
o o o t( a o uz re
M ah T M l e Pi rM S P
TA M ce ro he ti(
TA
& or e v
ic ar
u
d ra F C
h E M
in
ah
M

Source: KPMG International , IHS Automotive,

 Indian Market share and market growth of the 9 largest
New heavy commercial vehicle groups
70

59.6
60

50

40

30
25.2

20

10 8.9

2.3 1.9 1.9

0.1 0.1 0.1
0
s nd s a ks s ra r) )
or or d
or or nd le W
ot y la ot az ot i im (V
M Le rM jM s
W M ah a ia
TA ok he a or rc
e M z(
D an
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TA h
Sw
o F ra e S
As E
ia
M
n d s-
B
As a hi d e
M rce
e
M

Source: KPMG International , IHS Automotive,

 EU directives provide the definition of the standard.

the acceptable limits for exhaust emissions of new vehicles

sold in EU member states. The emission standards are
defined in a series of European Union directives staging
the progressive introduction of increasingly stringent
standards.

Euro 1 (1993): For passenger cars - 91/441/EEC.

Also for passenger cars and light trucks - 93/59/EEC.
Euro 2 (1996): for passenger cars - 94/12/EC (& 96/69/EC)
For motorcycle - 2002/51/EC (row A) - 2006/120/EC
Euro 3 (2000): for any vehicle - 98/69/EC
For motorcycle - 2002/51/EC (row B) - 2006/120/EC
Euro 4 (2005): for any vehicle - 98/69/EC (& 2002/80/EC)
Euro 5 (2008/9) and Euro 6 (2014)
For light passenger and commercial vehicles - 715/2007/EC
These limits supersede the original directive on emission limits
70/220/EEC.
http://www.jacobsvehiclesystems.com/markets/india/
 The segment of “modern domestic” trucks will see the
strongest growth in the medium-term.
Nevertheless, a complete convergence of the markets cannot be
expected within a typical planning horizon (10 to 15 years). Most likely
three distinct market segments are expected to evolve in emerging
markets:
• The low-cost segment, with technically simple and cheap trucks
• The modern domestic segment, with further developed, robust and still
extremely favorably-priced trucks.
• The premium segment, with technically high-quality and high-value
trucks from European, North American and Japanese OEMs.

Significant structural changes are expected in China as well, albeit not

as drastic as in Russia. Owing to the intense efforts of the Chinese
government and the increasing number of joint ventures between
emerging and established OEMs, both the modern domestic segment
and the premium segment are expected to account for a considerable
share of the market by 2020.

“India, on the other hand, is trailing behind. The Institute for

Automotive Research believes that market segmentation will only
change slightly by 2020. The low cost segment is still expected to
dominate the Indian market for a long time yet. “
Source: KPMG International , IHS Automotive,
 Shift of the segment structure in the emerging markets

2 3
100 3
10
13
15
90 20

80
35

70

60

50
85
82
75
40

55
30

20

10

0
2010 India 2020.0 2010 China 2020.0

Low Cost Trucks Modern Domestic Trucks Premium Trucks

Source: KPMG International , IHS Automotive,

 Bangladesh : Country Overview

Bangladesh, with about 160 million inhabitants on a

landmass of 147,570 square kilometers, is among the
most densely-populated countries in the world. While
poverty in both urban and rural areas declined by an
impressive 19 percentage points in the last decade-and-
a-half, the absolute number of people below the poverty
line remains significant. With around 53 million people
still below the poverty line, Bangladesh faces
considerable development challenges. Bangladesh’s
geographical position makes it one of the most vulnerable
countries to climate change and natural calamities like
cyclones and floods. Sixty percent of the worldwide
deaths caused by cyclones in the last 20 years occurred
in Bangladesh. Sustained growth in recent years has
rapidly increased the demand for energy, transport and
telecommunications services.

Bangladesh: Bolstering Economic Growth t...

 Bangladesh aspires to be a middle-income country by 2021

Bangladesh 's infrastructure industry is one of the

most underdeveloped in the world, a factor which
has impeded economic growth in the country.
However, growing bilateral ties between
neighboring China and India has brought with
it investments into the country's
infrastructure industry. But Bangladesh has
maintained an impressive track record on growth
and development. , the economy has grown at
nearly 6 percent per year. This will require
increasing GDP growth to 7.5 to 8 percent per
year based on accelerated export and
remittance growth. Both public and private
investment will need to increase as well

ttp://www.asiatradehub.com/bangladesh/roads.asp
 The Bangladesh Road master plan period of 2005-25

As such, issues related to road network have been identified

by RHD, which are follows:

i. National Highways are needed to be upgraded into 4/6 lanes with

medians to commensurate with higher traffic growth and to improve road
safety

ii. Construction of new bridges to ensure uninterrupted traffic flow

including replacement and major repair of existing old narrow bridges for
ensuring safety

iii. Road safety to be properly addressed in road design and enforced in

traffic management

iv. Developing comfortable road network to enhance the tourism industry

v. Maintenance needs a higher priority, more resources, improved

management reform and better quality standard 

vi. Institutional reform, and

vii. Digitalization of RHD activities

The Roads and Highways Department (RHD)

http://www.bangladeshdir.com
 Describes the Rising Demand For The Transport In Bangladesh

Geo-strategically, Bangladesh 's location is very

significant and sensitive in terms of Pan-Asian
continental surface connectivity. It has the
potentiality to be a focal connecting point between
SARRC & BIMSTEC countries. The issues like
intra & inter-country connectivity, export and
growth centers facilitating infrastructure, Asian
Highway , Trans Asian Railway Network etc. are
the important emerging issues of the country’s
surface transport strategy

Infrastructure - The Way to Bangladesh’s Heart

http://www.asiatradehub.com/bangladesh/roads.asp
 Rural Infrastructure:

IDA has contributed to the improvement of rural

connectivity in 21 districts. The assistance helped to
improve and maintain more than 2500 km rural roads. 
An impact study by the Bangladesh Institute of
Development Studies shows that female employment
increased by 50%, the share of farmers’
nonagricultural assets increased from 25 - 50%, and
the poverty reduction rate almost doubled in the
project areas.

 We used to eat only once a day. Now we can eat three times a day, and
I can afford to educate my two children. — Shyamoli Rani Pal
 The Road Sector – Background & Evaluation

The cost to strengthen pavements to raise the maximum single

axle load from 10 tons to 11.5 tons, the EU standard, will be
justified by lowered truck operating costs, if the road carries more
than about 200 trucks per day. On the Dhaka-Chittagong highway
the average number of trucks is about 6,000 per day.

Roads and Highways in Bangladesh

 National Highway = 3,478.42 km

 Regional Highway = 4,221.52 km

 Zilla Road = 13,247.79 km

 Total Road Length = 20,947.73 km

The Roads and Highways Department (RHD)

http://www.bangladeshdir.com
 Overview Of the Commercial Vehicles market
The Indian CV market is segmented on the basis of
Gross Vehicle Weight (GVW) into:
 Heavy Commercial Vehicles (16 tones and above)

Medium Commercial Vehicles (7.51 to 16 tones)

 Light Commercial Vehicles (3.51 to 7.5 tones)

 Small Light Commercial Vehicles (Up to 3.5 to….)

The China CV market is segmented on the basis of Gross

Vehicle Weight (GVW) into:

 Heavy Commercial Vehicles (16.1 tones and above)

Medium Commercial Vehicles (10.1 to 16 tones)

 Light Commercial Vehicles (5.1 to 10 tones)

 Small Light Commercial Vehicles (1- 5 tones)

Source: SIAM analysis

Heavy Commercial Vehicle (HCV)
40,000kg to 15,500kg

Medium Commercial Vehicle (MCV)

15,500kg to 7,500kg

Light Commercial Vehicle (LCV)

7,500kg to 3,500kg

Small Commercial Vehicle (SCV)

3,500kg to 0,00kg
 Heavy Goods
40,000kg to 15,500kg
HCV

Containers ,Tankers Coal ,Timber, Edible Oil,

Bitumen, Material–Sand ,Brick ,Stone Etc.
Auto Parts Construction fertilizers
Cement Bulk & Bags,
food Grains, woods
 Medium Goods
15,500kg to 7,500kg
MCV

Construction Material– Sand, Brick, Stone Etc.

Garments goods, fabrics, Cotton
Industrial raw Material
Packaging Product
Vegetable & Seed
 Light Goods
7,500kg to 3,500kg
LCV

Agricultural Produce, Poultry Products

Light Industrial & Construction goods
parcels, Plastic Products etc
Packaging Product
fisheries & Fruit
Vegetables
 Small Goods
3,500kg to 0,00kg
SCV

Electronics & General Goods

Furniture & Home Apparel
Home Delivery goods
Consumer Goods
Plastic Products
 Main Distributor

01.Nitol Motors Limited : Sole Distributor of TATA

02.Ifad Autos Limited : Sole Distributor of Ashok Leyland

03. Runner Motors Ltd : Sole Distributor of Eicher Mini Truck

04. Energypac power generation Ltd : Sole Distributor of JAC

05. Uttara Motors Limited : Sole Distributor of Isuzu,SwarajMazda,

Suzuki, FAW

06. RANGS Motors Limited : Sole Distributor of Eicher Heavy Truck

Mitsubishi Fuso Truck, Mahindra Ltd.
Thanks