The convergence of premium and low-cost trucks has led to the evolution of a mid-market segment — referred to as value trucks, and these medium- and heavy-duty (MD-HD) value trucks will emerge as the fastest-growing segment globally, with sales volumes of more than a million units by 2022.
New analysis from Frost & Sullivan shows that about 80 percent of these sales are expected from China, India, Africa and Indonesia. Of these, 70 percent will be from China and India, prompting original equipment manufacturers (OEMs) to focus on developing platforms for these two markets in the short-medium term. Additionally, OEMs to ensure the platforms feature attributes enabling global scalability in the long-term.
New analysis from Frost & Sullivan shows that about 80 percent of these sales are expected from China, India, Africa and Indonesia. Of these, 70 percent will be from China and India, prompting original equipment manufacturers (OEMs) to focus on developing platforms for these two markets in the short-medium term. Additionally, OEMs to ensure the platforms feature attributes enabling global scalability in the long-term.
The analysis, entitled Executive Analysis of Medium-Duty and Heavy-Duty Value Truck Market in Select Emerging Economies, finds mid-market value trucks represent the most attractive sub-segment for platform development. By 2020, the report claims, 75 percent of all value trucks built globally will be attributed to platform-based development and manufacturing.
“Global value truck OEMs and suppliers should realign product and service strategies to cater to the expanding mid-market,” said Bharani Lakshminarasimhan, Frost & Sullivan’s commercial vehicles program manager. “Multi-pronged market strategies will fetch desirable results, as both the premium and value truck segments offer substantial opportunities for growth.”
MD-HD value truck OEMs are targeting the premium truck market through value re-positioning of products to lower the loss of market share to low-cost trucks. Additionally, MD-HD value truck OEMs must cater to fleet requirements for a low cost of ownership, strong safety features and high reliability to prosper in emerging markets.
“Creating value clusters through incremental technology advancements or enhanced sophistication of base platforms are key for optimal positioning in the MD-HD value truck market,” said Lakshminarasimhan. “Therefore, MD-HD value truck OEMs should look at developing global platforms for low cost-centric markets and offer plug-in value solutions and services for market entry and growth.”
For more information on this study, send an e-mail to Kayla Belcher, Corporate Communications, atkayla.belcher@frost.com.
November 24, 2015By: Trucking News Staff
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