Value trucks gaining traction in China, India and Russia: Frost & Sullivan report for 2014
As medium-heavy duty trucks sales volumes grow globally, interest in medium-heavy duty trucks with advanced telematics solutions, green powertrain technologies, and safety enhancement technologies are gaining popularity. 2014 will increasingly concentrate prognostics solutions to reduce vehicle down time and improve productivity. As per a Frost & Sullivan Market Insight, Overview of the Global Medium-Heavy Duty Truck Market in 2014, sale of medium-heavy duty trucks is expected to go up to 2.87 million units by 2014 end.
“The market will experience introduction of several global engine platforms and at least 15 new truck models,” said Sandeep Kar, Global Director of Automotive & Transportation Research at Frost & Sullivan. “With a change in truck sale models from transactional to relational formats, the market is expected to see a rise in investments in multiplexing technologies that facilitate the integration of soft technologies in trucks. Soft technologies and service/maintenance based solutions will drive greater revenue opportunities for truck makers in coming years.”
OEMs are keen about telematics. Driver health, wellness, and wellbeing focused technologies are important focal points too. “Both trends of connectivity and a focus on technologies dealing with driver health, wellness and wellbeing will permeate in force to developing markets by the end of this decade,” added Kar.
97% of units sold in 2014 are expected to run on diesel. Truck original equipment manufacturers (OEMs) in all markets are looking at diesel engines for improved fuel efficiency, power density, and emission reduction. In regards to engine sizes, developing markets are looking upward, and developed markets are downsizing in the heavy-duty truck segment. “While diesel retains its status as the industry’s de facto fuel, natural gas fuelled trucks will account for roughly one percent of total medium-heavy truck sales this year,” said Kar.
Truck OEMs are focused on value trucks available at a price 30% lower than premium trucks and 15-20% higher than low-cost trucks. Such commercial vehicles are gaining traction in China, India and Russia markets and are expected to grow rapidly in 2014. “Truck OEMs are launching digital e-retailing initiatives, such as website-based sales optimization, integration of digital marketing within existing dealership models, off-shore digitization, and lead generation through predictive analytics to gain more touch points with truck buyers and influence their purchase decisions,” noted Kar. “They are also looking to adopt new technologies that can reduce operating expenses, as this will help them expand their customer base globally.”