TRUCK MAKERS ANALYSIS * India - Global OEMs and Suppliers Bracing for Tremendous Growth in Demand and Production of Low-Cost Trucks

The demand for low-cost trucks is set to experience steady and robust growth over the next 5 years

London,EN,UK -Andhra News (India) -March 9, 2011: -- The rising reliance of emerging economies on cost-effective light, medium and heavy commercial vehicles coupled with a recessionary environment in developed economies is creating tectonic changes in demand for trucks worldwide... New analysis from Frost & Sullivan, Strategic Analysis of Global Low-cost Truck Market, reports that over 3.2 million low-cost commercial trucks will be manufactured globally in 2016. Around 29 low-cost truck models will be introduced by global OEMs by 2016, indicating the rapid expansion and pertinence of low-cost light commercial vehicles (LCVs), medium commercial vehicles (MCVs) and heavy commercial vehicles (HCVs) in global markets. Powertrain, chassis, safety, comfort and convenience and other marketing related expenses will be key focal points for cost reduction in an endeavour to create low-cost trucks...   The low-cost truck will be initially fuelled by demand from BRIC nations, gradually finding traction in developed economies and eventually supported by the growth in the Next 11 economies. The changing nature of commercial vehicle activities under an environment of rising urbanisation, economic and energy price volatility and robust growth in demand for cost-effective commercial vehicles are compelling global truckmakers and suppliers to participate in this growing segment... This implies that a new segment is being created rapidly in the global commercial truck market offering growth opportunities to truckmakers and suppliers alike. This is also offering the opportunity to mature market OEMs to attain rapid volume growth in both local and global markets... In an endeavour to penetrate and grow in global markets, Asian OEMs have created low-cost truck platforms that are customisable to meet local market needs. The North American and European OEMs are acknowledging the threat and also realising the opportunities that they can avail through participation in the global low-cost truck market...

Analysis * USA - Bigger trucks would cost more than they would save

US Trucking Industry Pushes For Heavier Trucks On Roads

New York,NY,USA -Gerson Lehman Group, by Toby Kolstad -November 23, 2010: ...  Hardly anyone disputes the fact that bigger truckloads will do more damage to the nation’s highways than loads limited to 80,000lbs...   The proposed increase in the maximum heavy truck permit fee from $550 to $800, a 45.5% increase compared to the 25% increase in truck weights, gives tacit recognition to this problem without addressing past underpayments. Many of the infrastructure problems the nation is facing today are related to the damage heavy trucks have done in the past, along with the underfunding of highway maintenance programs... The trucking industry is expecting to suffer a capacity problem related to the full enforcement of the Highway Administration’s CSA 2010. Increasing the weight limit on trucks would go a long way in offsetting these new safety regulations. Some shippers who are worried about their logistical support from this industry may even endorse the idea of bigger trucks... The teamsters oppose the idea because of safety, by they could be, and probably will be bought off by higher wages. The latter may even be necessary for the trucking companies to attract enough drivers who can comply with CSA 2101...