New kid on the Indian block: Tranztar

From the December 2011 issue.

India is undergoing an infrastructure boom that is fuelling the domestic transport market. But, huge new opportunities are prompting truck makers like Asia Motor Works (AMW) to take the initiative and venture into the CV applications sector.

Ramping up the domestic economy with an upsurge in manufacturing and infrastructure development and diluting the reliance on imports is the aim of many emerging markets, and India is no exception. As this populous nation rapidly expands, infrastructure development has barely kept pace. But a current burst of activity to not only meet demand but to also insulate the domestic economy against a more widespread global slowdown is destined to boost demand for specialised transport equipment.

In fact, the inherent growth potential of India’s infrastructure sector including roads, ports and mines is driving truck maker AMW to diversify into the CV applications market. Another growth factor is the growth potential of the Indian CV market, which is growing at a CAGR of 13% and is currently the 8th largest in the world. Meanwhile, India itself has the 3rd largest road network in the world.

For keen potential exporters of such equipment though, the question is whether India’s expansion will provide a valuable market or if that nation’s own trailer manufacturing industry will grow to not only meet a greater proportion of that demand, but place itself on a solid, sustainable and increasing base.

The subcontinent’s infrastructure boom is making the commercial vehicle segment virtually crisis-proof. According to industry resource, Car Trade India, the commercial vehicle market experienced a notable high in the past quarter. In October alone, the sector posted sales growth of 28 per cent, compared to September.

But, as demand for transport equipment ramps up, some manufacturers face a severe supply shortage, often due to diseconomies of scale at the other end of the supply chain. It is no surprise, therefore, that the truck manufacturing industry is now capitalising on its own experience in volume production, venturing into the field of trailer and body-building.

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