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Commercial vehicle sales rose after ecommerce boom

Update On :13 February 2016

Commercial vehicle sales rose after ecommerce boom

To revive and help the commercial vehicle segment increase sales when bulk purchases is made by traditional customers, the fast growing Ecommerce sector has given its support. The revenue opportunity from the ecommerce boom for commercial vehicle makers is projected by some executives at as high as $500 million (Rs 3,400 crore) over the next three to four years.

Senior executives at leading commercial vehicle manufacturers acknowledge the contribution of ecommerce-related logistics in the industry's recent strong performance and they expect it to increase. While ecommerce still accounts for only a small part of the domestic freight industry, the growth potential is significant.

Tata motors is the India's top commercial vehicle maker that sells on an average 13,500 light commercial vehicles a month. Ravi Pisharody, executive director of commercial vehicle business at Tata Motors said, "We have already sold around a 1,000 mini trucks which are being used for last-mile deliveries. We also retail 100-200 small commercial vehicles in a month which are utilized for ecommerce-related goods movement. If consumption continues to increase over and above traditional retail, we expect it will result in higher demand for trucks in the heavy duty segment as well."

Vinod Dasari, managing director at Ashok Leyland, also has a similar view. "Ecommerce is definitely helping. Instead of somebody going to the store and purchasing, consumers are now ordering online. These products are shipped from some central warehouses and transport has to be through trucks. It is increasing our business."

News Source From : http://brandequity.economictimes.indiatimes.com/news/business-of-brands/the-e-commerce-boom-has-revved-commercial-vehicle-sales/50969913

Image Courtesy : http://indiatransportportal.com/wp-content/uploads/2012/03/tata-trucks.jpeg

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