India Tipper Truck Market Overview
The India tipper truck market is thriving on the back if increasing opportunities generated by the rising coal mining in the country and the economy bounce back after the downfall due to Covid-19 pandemic, coupled with the growing trends in the change in GST implementation and the growing transition in the BS (Bharat Stage) standards. The government of India is planning to increase its coal mining in the country, which will create direct demand for tipper trucks in the coming year. In 2018, around 15-20% of tipper trucks were used in coal mining only, making it one of the most important customer segments for the market. This increased domestic output of coal will reduce the dependency on imports. Moreover, as coal mining is increasing, the demand for tipper trucks will increase as it is responsible for transporting the coal to nearby destinations from mines. Coal India is planning to transport coal by road as a matter of fact that various mines are located in the remote areas of the states and cannot be connected via railways. The India tipper truck market was valued at USD 3766.0 million in the year 2018 and is expected to garner USD 6049.0 million by the end of 2024 by registering a CAGR of 4.89% across the globe over the forecast period, i.e. 2019-2024. Additionally, the market is anticipated to grow by 1.26x and further gain an incremental $ opportunity of USD 1284 million during the forecast period.
Market Segmentation Synopsis
By Truck Type
The India tipper truck market has been segmented on the basis of truck type into semi-trailer end dump truck, standard dump truck, side tipper dump truck, bottom dump truck and others. The standard dump truck segment registered the largest market share of 56.01% in the year 2018 and is expected to grow with the highest CAGR of 5.23% during the forecast period. Moreover, the segment, which held a market value of USD 2109.2 million in the year 2018 is anticipated to grow by 1.29x during the forecast period and further gain an absolute $ opportunity of USD 777.0 million during the forecast period. Standard dump trucks hold the largest share of the market owing to the fact that it operates on hydraulic systems. These types of dump trucks employ fluid pressure to generate power which helps in the lifting process. On account of its power capacity, standard tipper trucks can vary in payloads from the standard 10-15 tonne to 35 to 40 tonne which makes it more maneuverable than the higher capacity semi-trailer dump trucks. The hydraulic system of the dump truck helps the bed to raise by a vertical hydraulic ram which is mounted under the front body or horizontal ram and lever arrangement between the frame rails. Further, the back of the bed is hinged at the back of the truck. CLICK TO DOWNLOAD SAMPLE REPORT
Market Drivers and Challenges
Growth Indicators
Increasing Industrial Activity in Construction Sector
The increasing number of infrastructure and major construction projects which are in ongoing developmental phase have resulted in increased demand for tipper trucks. Road construction projects such as Golden Quadrilateral and Pradhan Mantri Grameen Sadak Yojana along with irrigation and quarry are fueling the growth of tipper truck market. Additionally, increasing need for transporting high volumes of aggregates, along with the significant demand for multi-axle trucks, backed by the rise in hauling and tipping more output per day are some of the major factors driving the growth of the India tipper truck market. The market is also driven by the rising government expenditure on urban infrastructure projects along with the emergence of fuel-efficient tipper trucks to prevent growing pollution level.
Expanding Mining Sector
Mining activity demands off-site and far-away operations which requires heavy commercial vehicles such as tipper trucks to handle the material transportation needs. Rising mining projects especially for coal production, generates a huge demand for medium or heavy tipper trucks in India. Tipper trucks are technologically most advanced and the safest trucks to operate in high demanding and tough mining conditions. Additionally, the demand for power and cement industries has resulted in the growth of mining sector. According to the Ministry of Mines, India is considered as 7th largest country with bauxite reserves which accounts for approximately 2,908.85 million tonne in the year 2018. Additionally, in the year 2019, FDI inflows in the mining, diamond, gold ornaments and coal production sectors stood at US$ 2,652.60 million, US$ 1,165.01 and US$ 27.73 million, respectively.
Barriers
Revised Axle-Load Norms
The law for new axle load norms was applied from July 2018 according to which the allowed GVW (Gross Vehicle Weight) limit for all the trucks in India was increased. These changes in loading capacity norms lead to the decrease in tipper truck demand in the market as the caring capacity of the already in place trucks was increased. The government motive behind this change in regulation was to reduce congestion and regulate carbon footprint in the country. Such a factor is anticipated to act as a barrier to the growth of the India tipper truck market.
Top Featured Companies Dominating the Market
Some of the affluent industry leaders in the India tipper truck market are Tata Motors Limited, Ashok Leyland, AB Volvo, Daimler AG (BharatBenz), Eicher Motors Limited, Mahindra & Mahindra Ltd., Scania, SML Isuzu Limited, MAN SE and Asia Motor Works Limited.
