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The New Axle Load Norms in India are Expected to have a Positive Impact on the Revenue of 6 Major Segments
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This study conducts a detailed assessment of the impact of the new axle load norms on the commercial vehicle (CV) Industry in India. The new norms, applicable from16 July 2018, are meant to bring gross vehicle weights (GVWs) in India at par with that of other global markets. The government believes this will help restrict the vehicle population in the country, thus reducing congestion and regulating the carbon footprint of the country.This research service discusses the key stakeholder reactions and market perception to the implementation of these norms. This research also discusses OEM action plans for product upgrades and the implementation status of regional transport offices (RTOs) across India. The study analyzes the impact of the new axle load norms on the cement, steel, tanker (POL, edible oil and alcohol), ISO containers, auto carriers (2W/4W car carriers), fast-moving consumer goods (FMCG), market load, parcels & logistics, reefer, and tippers (blue metal and sand) segments. This study also analyzes the impact of the new axle load norms on the fleet owner’s operation economics. It also provides key conclusion and growth opportunities for companies in this market.Insights on the expectation of fleet owners in the CV industry regarding preferred changes in product body design and engine power have also been included as well as the new product concepts that can maximize the benefits of the new axle load norms. The base year for this study is 2018.The implementation of the new axle load norms will have a positive impact on the revenue of fleet owners serving the cement, steel, tanker (POL, Edible Oil, and Alcohol), market load, auto carrier (2W/4W), and LPG cylinder segments.The reefer, FMCG, parcels and logistics, tippers (blue metal and sand), auto components (tires), and LPG tanker segments will not be impacted by the implementation of the new axle load norms. The fleet operators of this segment expect a shift towards the ICV segment for better load utilization and profitability.Commercial vehicle OEMs, key suppliers, and automotive part manufacturers’ associations and consultancies.
Key Issues Addressed
Author: Ankush Katailiha
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