Rough roads with essential milestones to be achieved
The European Union defined Commercial Vehicles as the ones which carry business goods for business purpose or carry paid passengers from one destination to another. In simple words, vehicles utilized with a profit making motto are termed as Commercial Vehicles. This segregation in the usage has also differentiated the vehicle industry into a commercial vehicle industry having its own statistics of manufacturing and sales. Initially, this segment of locomotives didn’t have a mentionable share in the market but with the evolution of the trade business and its subsidiaries the sector has gained massive numbers thus enhancing the revenues.
Let us now find some of the hottest happenings in the industry in the recent years and try to put to together numbers that are likely in the near future.
With effects to the serious injury to the economics of most of the western countries, the business activities found their new lows and thus the commercial vehicle industry was marred badly. Despite these challenging conditions the industry may find a savior in the face of OEM’s–Original Equipment Manufacturers. These OEM’s can cut through new marketing strategies, bring down the production costs, improve the supply chain using effective management techniques and wisely investing into the emission and fuel efficiency enhancement ideas. It’s not that the market for commercial vehicles is dead, new born emerging industries in various sectors need their logistics activities to be going on at a regular basis. Thus, the hope for a recovery is still beating hard.
Recent market study has found a positive change into the commercial carriers industry as major industrial growths are waiting to happen in different geographical localities. The mild marks of success rates were witnessed in 2013 however; these were lower than the previous records thus slightly slowing down the industry.
After all the dull news, the market doesn’t seem to be a negative one in the future for the OEM’s operating in the commercial vehicle segment. The latest market research is predicting the industry to touch a CAGR of 5.4% by the end of the year 2016. This growth curve will be primarily be driven by the emerging markets assumingly coming from Asia Pacific mainly from China. The Chinese commercial vehicle market is likely to attend a growth CAGR as high as 7.1% by the end of 2016.
On a comparative basis the west side market is about to receive a milder improvement as the Northern American region is likely to go through a rise in CAGR of 2.3% by 2016.
On the production line for commercial vehicles, 2012 was a dismal year with almost forgettable figures. But the trend for the future is sounding positive as there is an expectation of the industry growing with at a thumping CAGR of 6.9% through the year 2017.
Again this is seen to be possible due to the inclusion of emerging markets. The Asian countries are set to play a big role in removing the manufacturing segment of this industry. China in particular, is trusted to be the armed one accounting to its share of almost 60% of the global production.
This trend is believed to continue at least for now and better shining days are estimated for the commercial vehicles industry provided the makers:.
Invest in emission reduction and go fuel efficient
Concentrate on the emerging market
Turn to cost efficient production pattern
Improve the supply chain management
Hope they do follow these important steps for the betterment of the industry.