CLASSIFICATION CLASSIFICATION COMMERCIAL VEHICLE IN COMMERCIAL VEHICLE IN 

BANGLADESH/ BANGLADESH/ ACKNOWLEDGMENTSACKNOWLEDGMENTS

Abdur  Rahman SagorAsst. Manager , Recovery, DMVEnergypac power generation Ltd.

17/02/2014

MODEL BASIS OF APPLICATIONMODEL BASIS OF APPLICATION

We’ve addressed things like fuel economy, weight, and driver environment. Next, we’ll see technologies such as collision avoidance systems, stability systems – anything which can reduce their [the operator’s] overall costs further.

We definitely put a lot of effort into developing standardized cross-segment components for our trucks. In the end, we have to account to very specific end user requirements across all markets and these set very tight limits to standardization. Just take our Worth plant. Of course, such a high degree of differentiation is not necessary in the emerging markets.

OUTLINE OF THE PRESENTATIONOUTLINE OF THE PRESENTATION

Domestic Commercial Vehicle Industry- Volume Trends Overcapacity in the trucking system Industry volume trends in M & H CVs, LCVs and Buses Trend in macro economic indicators Trend in freight rates and fleet operator viability Key Trends in the CV financing environment Market share trends and competitive landscape Trend in profitability indicators of CV Outlook.

INTRODUCTIONINTRODUCTION

Commercial vehicle sales are spurred on by economic growth Going in hand with the rising demand for the transport of goods. Of course, this is common knowledge – but just perfectly describes the ups and downs in the truck industry over the last couple of years.

One thing is for sure: the markets will converge – not today, but early enough to start thinking about which winning strategies could guide the way to a profitable and sustainable global truck business model for tomorrow.

DESCRIPTIONDESCRIPTION

LVC-   Light commercial vehicles (LCV) are goods and carriage vehicles with a gross vehicle weight (GVW) that varies from one region to another. In order to ensure international comparability, all LCVs referred to in this report have a GVW below 6 tons (t).

HCV- Heavy commercial vehicles (HCV) are commercial vehicles carrying goods with a gross vehicle weight (GVW) greater than 6 tons (t).

GVW-Gross  vehicle weight (GVW) is the maximum allowable total weight of a fully loaded commercial vehicle. This includes the actual vehicle weight as well as passengers, cargo and fuel..

FLM-A Full-Line Manufacturer (FLM) is a truck manufacturer producing and selling commercial vehicles in both the LCV and the HCV segment

OVERVIEW OF THE CHINA COMMERCIAL VEHICLES OVERVIEW OF THE CHINA COMMERCIAL VEHICLES MARKETMARKET

Vehicle manufacturers groups The top five manufacturers in China –Dongfeng, FAW, CNHTC, Torch and Beijing Automotive – command almost 70 % of truck sales FULL-LINE(LCV+HCV)

BAIC Chengdu XindadiChina First TractorDongfeng, FAWFujian Longma, Lifan Group  Nanjing  Automotive SAICShuguang Group, Zhengzhou Yutong Coach 

1 First Automotive Works2 China National Heavy Duty Truck Corp.3 Volvo, Renault Trucks, Mack 4 Beijing Automotive Industry Corp. (Auman, EuroV, Beiqi Foton) 

 LEADING PLAYERS IN KEY REGIONS AND CHINA LEADING PLAYERS IN KEY REGIONS AND CHINA MARKETS SHARE (GVW > 6 TONS)MARKETS SHARE (GVW > 6 TONS)

The top three Commercial Vehicle Manufacturers in India are : 

qTATA Motors(58.5%)

qMahindra and Mahindra (15.7%)

qAshok Leyland (11.0%)

OVERVIEW OF THE INDIA OVERVIEW OF THE INDIA COMMERCIAL COMMERCIAL 

VEHICLE MARKETVEHICLE MARKET

INDIAN MARKET SHARE AND MARKET GROWTH OF THE INDIAN MARKET SHARE AND MARKET GROWTH OF THE 9 LARGEST NEW LIGHT COMMERCIAL VEHICLE GROUPS9 LARGEST NEW LIGHT COMMERCIAL VEHICLE GROUPS

Source: KPMG International , IHS Automotive,

INDIAN MARKET SHARE AND MARKET GROWTH OF THE INDIAN MARKET SHARE AND MARKET GROWTH OF THE 9 LARGEST NEW HEAVY COMMERCIAL VEHICLE 9 LARGEST NEW HEAVY COMMERCIAL VEHICLE 

GROUPSGROUPS

Source: KPMG International , IHS Automotive,

EU DIRECTIVES PROVIDE THE DEFINITION OF THE EU DIRECTIVES PROVIDE THE DEFINITION OF THE STANDARDSTANDARD

the acceptable limits for exhaust emissions of new vehicles sold in EU member states. The emission standards are defined in a series of European Union directives staging the progressive introduction of increasingly stringent standards. Euro 1 (1993): For passenger cars - 91/441/EEC.

Also for passenger cars and light trucks - 93/59/EEC.

Euro 2 (1996): for passenger cars - 94/12/EC (& 96/69/EC) For motorcycle - 2002/51/EC (row A) - 2006/120/EC

Euro 3 (2000):  for any vehicle - 98/69/ECFor motorcycle - 2002/51/EC (row B) - 2006/120/EC

Euro 4 (2005): for any vehicle - 98/69/EC (& 2002/80/EC)

Euro 5 (2008/9) and Euro 6 (2014)        For light passenger and commercial vehicles - 715/2007/EC

These limits supersede the original directive on emission limits         70 /220/EEC.

http://www.jacobsvehiclesystems.com/markets/india/

THE SEGMENT OF “MODERN DOMESTIC” TRUCKS THE SEGMENT OF “MODERN DOMESTIC” TRUCKS WILL SEE THE STRONGEST GROWTH IN THE MEDIUM-WILL SEE THE STRONGEST GROWTH IN THE MEDIUM-

TERM. TERM. Nevertheless, a complete convergence of the markets cannot be expected within a typical planning horizon (10 to 15 years). Most likely three distinct market segments are expected to evolve in emerging markets:

• The low-cost segment, with technically simple and cheap trucks• The modern domestic segment, with further developed, robust and still extremely   favorably-priced trucks.• The premium segment, with technically high-quality and high-value trucks from    European, North American and Japanese OEMs. 

Significant structural changes are expected in China as well, albeit not as drastic as inRussia. Owing to the intense efforts of the Chinese government and the increasingnumber of joint ventures between emerging and established OEMs, both the modernDomestic segment and the premium segment are expected to account for a considerable share of the market by 2020.

India, on the other hand, is trailing behind. The Institute for Automotive Research believes that market segmentation will only change slightly by 2020. The low cost segment is stillexpected to dominate the Indian market for a long time yet.

Source: KPMG International , IHS Automotive,

SHIFT OF THE SEGMENT STRUCTURE IN THE EMERGING SHIFT OF THE SEGMENT STRUCTURE IN THE EMERGING MARKETSMARKETS

Source: KPMG International , IHS Automotive,

BANGLADESH : COUNTRY OVERVIEWBANGLADESH : COUNTRY OVERVIEW

Bangladesh, with about 160 million inhabitants on a landmass of 147,570 square kilometers, is among the most densely-populated countries in theworld. While poverty in both urban and rural areas declined by an impressive 19 percentage points in the last decade-and-a-half, the absolute number of people below the poverty line remains significant. With around 53 millionpeople still below the poverty line, Bangladesh faces considerable development challenges. Bangladesh’s geographical position makes it one of themost vulnerable countries to climate change and natural calamities likecyclones and floods. Sixty percent of the worldwide deaths caused bycyclones in the last 20 years occurred in Bangladesh. Sustained growth in recent years has rapidly increased the demand for energy, transport andtelecommunications services.

Bangladesh: Bolstering Economic Growth t...

BANGLADESH ASPIRES TO BE A MIDDLE-INCOME BANGLADESH ASPIRES TO BE A MIDDLE-INCOME COUNTRY BY 2021COUNTRY BY 2021

Bangladesh's  infrastructure  industry  is  one  of  the  most underdeveloped  in  the  world,  a  factor  which  has  impeded economicgrowth in the country. However, growing bilateral ties between neighboring China and India has brought with it investmentsInto  the country's  infrastructure  industry. But Bangladesh has maintained  an  impressive  track  record  on  growth  and development,  the  economy has grown at nearly  6 percent  per year. Thiswill require increasing GDP growth to 7.5 to 8 percent per year based on accelerated export and remittance growth. Bothpublic and private investment will need to increase as well……..

http://www.asiatradehub.com/bangladesh/roads.asp

THE BANGLADESH ROAD MASTER PLAN PERIOD OF  THE BANGLADESH ROAD MASTER PLAN PERIOD OF  2005-25 2005-25 

         I. National Highways are needed to be upgraded into 4/6 lanes with medians to commensurate with higher traffic growth and to improve road safety

ii. Construction of new bridges to ensure uninterrupted traffic flow including replacement and major repair of existing old narrow bridges for ensuring safety

iii. Road safety to be properly addressed in road design and enforced in traffic management

iv. Developing comfortable road network to enhance the tourism industry

v. Maintenance needs a higher priority, more resources, improved management reform and better quality standard 

vi. Institutional reform, and

vii. Digitalization of RHD activities

The Roads and Highways Department (RHD) http://www.bangladeshdir.com

DESCRIBES THE RISING DEMAND FOR THE DESCRIBES THE RISING DEMAND FOR THE TRANSPORT IN BANGLADESH TRANSPORT IN BANGLADESH 

Geo-strategically, Bangladesh 's location is very significant and sensitive in terms of Pan-Asian continental surface connectivity. It has the potentiality to be a focal connecting point between SARRC & BIMSTEC countries. The issues like intra & inter-country connectivit,export and growth centers facilitating infrastructure, Asian Highway, Trans Asian Railway Network etc. are the important emerging issues of the country’s surface transport strategy

Infrastructure - The Way to Bangladesh’s Heart 

http://www.asiatradehub.com/bangladesh/roads.asp

RURAL INFRASTRUCTURE:RURAL INFRASTRUCTURE: 

IDA has contributed  to the  improvement of rural connectivity  in 21  districts.  The  assistance  helped  to  improve  and  maintain more  than  2500  km  rural  roads.   An  impact  study  by  the Bangladesh Institute of Development Studies shows that  female employment increased by 50%, the share of farmers’ nonagricultural assets increased from 25 - 50%, and the poverty reduction rate almost doubled in the project areas. 

v We used to eat only once a day. Now we can eat three times a day, and I can afford to educate my two children.

— Shyamoli Rani Pal

THE ROAD SECTOR – BACKGROUND & EVALUATIONTHE ROAD SECTOR – BACKGROUND & EVALUATION 

The cost to strengthen pavements to raise the maximum single axle load from 10 tons to 11.5 tons, the EU standard, will be justified by lowered    truck operating costs, if the road carries more than about 200 trucks per day. On the Dhaka-Chittagong highway the average number of trucks is about 6,000 per day.

Roads and Highways in Bangladesh

q    National Highway = 3,478.42 km

q    Regional Highway = 4,221.52 km 

q    Zilla Road = 13,247.79 km 

q    Total Road Length = 20,947.73 km The Roads and Highways Department (RHD)http://www.bangladeshdir.com

 OVERVIEW OF THE COMMERCIAL VEHICLES MARKETOVERVIEW OF THE COMMERCIAL VEHICLES MARKET

The Indian CV market is segmented on the basis of  Gross Vehicle Weight (GVW) into:

v Heavy Commercial Vehicles (16 tones and above)

vMedium Commercial Vehicles (7.51 to 16 tones)

v Light Commercial Vehicles (3.51 to  7.5 tones)

v Small Light Commercial Vehicles (Up to 3.5 to….)

The China CV market is segmented on the basis of  Gross Vehicle Weight (GVW) into:

v Heavy Commercial Vehicles (16.1 tones and above)

vMedium Commercial Vehicles (10.1 to 16 tones)

v Light Commercial Vehicles (5.1 to 10 tones)

v Small Light Commercial Vehicles (1- 5 tones)

Source: SIAM analysis

HEAVY GOODSHEAVY GOODS40,000KG TO 15,500KG40,000KG TO 15,500KG

HCVHCV

Containers ,Tankers Coal ,Timber, Edible Oil,Bitumen, Material–Sand ,Brick ,Stone Etc. 

Auto Parts Construction fertilizersCement Bulk & Bags,food Grains, woods

MEDIUM GOODSMEDIUM GOODS15,500KG TO 7,500KG15,500KG TO 7,500KG

MCVMCV

Construction Material–Sand, Brick, Stone Etc.Garments goods, fabrics, Cotton

Industrial raw MaterialPackaging ProductVegetable & Seed

Agricultural Produce, Poultry ProductsLight Industrial & Construction goods

parcels, Plastic Products etcPackaging Productfisheries & Fruit

Vegetables

LIGHT GOODSLIGHT GOODS7,500KG TO 3,500KG7,500KG TO 3,500KG

LCVLCV

Electronics & General GoodsFurniture & Home ApparelHome Delivery goodsConsumer GoodsPlastic Products

SMALL GOODSSMALL GOODS3,500KG TO 0,00KG3,500KG TO 0,00KG

SCVSCV

01.Nitol Motors Limited       : Sole Distributor of TATA 

02.Ifad Autos Limited         : Sole Distributor of Ashok Leyland                         03. Runner Motors Ltd  : Sole Distributor of Eicher Mini Truck

04. Energypac power generation Ltd : Sole Distributor of JAC

05. Uttara Motors Limited  : Sole Distributor of Isuzu, Swaraj Mazda, Suzuki, FAW

06. RANGS Motors Limited : Sole Distributor of Eicher Heavy   Truck Mitsubishi Fuso Truck, Mahindra Ltd. 

MAIN DISTRIBUTORMAIN DISTRIBUTOR

HEAVY GOODSHEAVY GOODS40,000KG TO 15,500KG40,000KG TO 15,500KG

HCVHCV

Nitol Motors Limited        TATA

LPK 1613 with WB 3225 , LPK 1613 with WB 3625 , LPK 1613 with WB 4225 , LPK 1618 , LPK 2518 , LPK 2518 9S HYLIFE , LPK 2518 9SHD , LPK 2518 HD , LPK 3118 , LPS 4018 TIP , LPS 4923 , LPS 4923 TIP , PRIMA 2528k with WB 3950, PRIMA 2528k with WB 4570

Ifad Autos Limited Ashok Leyland

1612 IL -Body Type Rigid Haulage) , 1616 (Body Type Tipper) ,1616 IL ,1616 IL/1 , 1616 IL/2 , 1616 IL/3 (Body Type Rigid Haulage) ,{1616 XL , 1616 XL/2 ,1616 XL/3 (Body Type Tipper)} , 1616 XL/3 (Body Type Tipper) , 1616 XP (Body Type Rigid Haulage) , 2516 IL , 2516 IL/1 , 2516 T IL , 2516 XL (Body Type Rigid Haulage)

Runner Motors Ltd. Eicher

Eicher-(20.16 with WB 4300 , 20.16 with WB 4800 , 20.16 with WB 5340 , 20.16 with WB 6260 , 30.25 FE with WB 4900 , 30.25 FE with WB 5260 , 30.25 XP with WB 4900 , 30.25 XP with WB 5260 , 30.25 XP with WB 6600 , 35.31 , 35.31 with FBT, 40.35-Body Type Rigid Haulage) Eicher-(Terra 16-Body Type Tipper)

Energypac JAC ?

Rangs MahindraMahindra-(Torro 25 170 , Torro 25 202 , Torro 31 202-Body Type Tipper) Mahindra-(Truxo 25 170 with WB 5000 / with WB 5350 / with WB 6000 / with WB 6100 , Truxo 25 202 with WB 5000 / with WB 5350 / with WB 6000 / with WB 6100 , Truxo 31 170 , Truxo 31 202-Body Type Rigid Haulage)

Navana Limited         HINO

MEDIUM GOODSMEDIUM GOODS15,500KG TO 7,500KG15,500KG TO 7,500KG

MCVMCV

Nitol Motors Limited TATATATA -LPT -1109 Ex BSIII OL 4863 / 4907 , 1109H- Ex2 / BSIII OL 4863 / 6631 / 6675 , (LPT -709 HEx2 BSIII with OL 4342 / 4381 / 5050 / 5062 ) (LPT -909 EX / OL 4342 / 4381 / 5050)

Ifad Autos Limited Ashok Leyland

BOSS 1112 LE- with WB 3900 / with WB 4500 / with WB 4900 , (1113 LX- with WB 3900 / with WB 4500 / with WB 4900) (BOSS 1212 LE with WB 3900 / with WB 4500 / with WB 4900 ) (BOSS 1213 LX with WB 3900 / with WB 4500 / with WB 4900 ) (BOSS 912 LE with WB 3440 / with WB 3940)

Runner Motors Ltd. Eicher

Eicher-(10.75 with WB 2815 , 10.75 with WB 3515 , 10.75 with WB 3765 , 10.8 with WB 2815 ,10.8 with WB 3515 ,10.8 with WB 3765 ,10.9 with WB 3515 ,10.9 with WB 3765 ,10.9 with WB 4065 ,10.95 with WB 3515 ,10.95 with WB 3765 ,10.95 with WB 4065 ,11.10 with WB 3800 , 11.10 with WB 4300 ,

Energypac JAC Hfc1063k/ Hfc1048ks

Uttara Motors Ltd Swaraj Mazda-Japan

WT-49

LIGHT GOODSLIGHT GOODS7,500KG TO 3,500KG7,500KG TO 3,500KG

LCVLCV

Nitol Motors Limited       TATA Lpt709/38-34,407/27-31,207DIEX-RX

Ifad Autos Limited  Ashok Leyland

Runner Motors Ltd.   EicherEicher-(10.5 with WB 2750 , 10.5 with WB 3350 , 10.59 XP -Body Type Rigid Haulage)

Energypac JAC Hfc1020k/ Hfc1021k/ Hfc1035kd

Uttara Motors Ltd Swaraj Mazda-Japan Isuzu- NKR

Rangs Mahindra

Mahindra-(Loadking Zoom with WB 2500-4 Tyres /6 Tyres , Loadking Zoom with WB 3320, 6 Tyres-Body Type Rigid Haulage)

SMALL GOODSSMALL GOODS3,500KG TO 0,00KG3,500KG TO 0,00KG

SCVSCV

Nitol Motors Limited        TATA Xenon(4*4),Ace Zip, Tata ace

Ifad Autos Limited Ashok LeylandAshok Leyland- Dost LE , Dost LS , Dost LX-with 

pick-up body

Runner Motors Ltd. Eicher

Energypac JAC

 Uttara Motors Ltd Swaraj Mazda-Japan Isuzu- NKR

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