CV market experiencing ‘invasion’ of low cost trucks

The global commercial vehicle market is experiencing a “growing invasion of “low-cost trucks”, according to analysts from Frost & Sullivan. These trucks, mostly from Asian OEMs, are priced approximately 20-25 per cent lower than conventional trucks and are penetrating markets all over the world. In response the analysts are holding a free “European Threats and Opportunities” web conference on 22 February 2011 at 15:00 BST hosted by research analyst, Ryan Carmichael.

“The demand for low-cost trucks is set to experience a steady and robust growth over the next five years,” said Carmichael. “Asian OEMs, particularly those based in China and India are creating low-cost truck platforms to target global markets. OEMs in developed markets have not as yet pushed cost-reduction strategies domestically, but will be challenged to, when these vehicles begin to arrive. In addressing this threat, OEMs in developed markets will not only need to defend market share at home, but will also need to push products into developing markets in order to establish a more diversified global presence.”

The cost saving strategies, relative to other commercial vehicles available in a given segment, include powertrain downsizing, chassis reductions, amongst others. “Some of the greatest potential sales of low-cost vehicles will happen in segments of the freight market which are currently using vehicles that are actually over-engineered to suit the actual work requirements,” Carmichael concluded.

The conference is set to cover subjects including strategies put in place by leading global truck-makers and system suppliers as well as what customers and fleet managers are demanding from these low-cost trucks. The analyst briefing will also offer a benchmarking analysis of the various light, medium and heavy duty truck platforms and identify the global hot-spots for both low-cost truck production and sale.