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Indian Truck Market Opportunities Narrow, Truck Companies in China Need to Seize Opportunities
According to Indian News Trust News, the Delhi government in India is drafting a notice aimed at reducing the pollution that cars bring to the urban environment and reducing the traffic pressure in the entire city. It is understood that this notice will focus on heavy trucks.
The "CV News" reporter learned that if this notification can be implemented smoothly, in the next two years, about 200,000 heavy trucks in India's capital, Delhi, with a lifespan of more than 10 years will be eliminated.
The elimination period has been reduced to 10 years
The Delhi-based Delhi Ministry of Transport stated that the notice is currently in the drafting stage, and its scope of implementation and specific contents have not yet been finalized. However, it is certain that once the notification is confirmed, it will be implemented in Delhi first, and the affected heavy trucks will reach 200,000 vehicles. It is also known that urban buses that use CNG and meet operating standards will not be included in the phase-out range.
Since October 2, 1998, Delhi has gradually implemented a phase-out system for old commercial vehicles, requiring the phase-out of heavy trucks that have been used for more than 20 years, more than 17 years, and more than 15 years. On April 1, 2000, Delhi’s transportation department decided to start phasing out buses other than clean energy buses that have been used for more than eight years. This time, the Delhi government has further shortened the elimination period of heavy trucks to 10 years, demonstrating India’s determination in energy saving and emission reduction.
According to Delhi's Ministry of Transport, this move is to learn from China.
In the eyes of Delhi's Ministry of Transport, in 2007, China increased its efforts to control overload and exceeded the requirements for vehicle exhaust emissions. The implementation of these policies has led to a sharp increase in demand for domestic commercial vehicles in China. In 2007, the annual sales volume of commercial vehicles in China was 2,494,400, an increase of 22.25% compared to the same period in 2006. Analysts believe that, drawing on China's experience and the dramatic increase in truck sales, Delhi will begin the phase-out of 200,000 heavy trucks, and the upgrading of heavy-duty trucks will bring new business opportunities to commercial vehicle manufacturers.
China's heavy truck companies miss the opportunity
According to data released by the Indian Automobile Manufacturers Association, in July, India’s car sales fell by 1.7% year-on-year to 87,700 units, compared to 89,300 vehicles in the same period last year, which is the first decline in monthly auto sales in India in the past three years. The Federation of Indian Automobile Manufacturers believes that this downturn is inextricably linked with higher raw material prices and increased inflation. For India's domestic commercial vehicle manufacturers, the announcement is undoubtedly a good news in the face of bad news about the decline in car sales.
Even more happy is the multinational commercial vehicle company. Due to the weak power of local commercial vehicle manufacturers in India, most commercial vehicle markets in India are still controlled by foreign companies or joint ventures. Even in the event of a decline in sales volume, multinational companies have not slowed down the pace of development in India. It is understood that MAN Force, a German MAN company in India, plans to increase the annual truck production to 24,000 units in the next two years; Daimler and the Indian company Hero Group will form a joint venture for the production of trucks. The company hopes that this move will increase the market share of its products in emerging markets; Volvo and Indian company Eicher Motors will also cooperate in the production of trucks.
For Chinese heavy-duty truck companies, China’s heavy-duty truck exports to India have gained momentum in recent years. Most of the domestic heavy truck companies have already exported heavy trucks to India. Faced with the huge shortfall of 200,000 heavy trucks in India, Chinese heavy truck companies should further accelerate the pace of opening up the Indian market.
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India's emission reduction process
Delhi, India was once called “Smoke Cityâ€. It is understood that the pollution caused by the exhaust emissions of cars every day is equivalent to one pack of cigarettes smoked by each resident.
India's new vehicle emission standards were implemented in 1991. Between 1996 and 2000, emission standards were gradually tightened. In 2000, the Supreme Court of India announced that all diesel buses must be converted to natural gas buses by April 1, 2001. At that time, there were more than 10,000 buses that needed to be converted into natural gas fuel. At present, commercial vehicles in India implement Euro III emission standards.
India plans to add 100 filling stations
With the continuous rise in the prices of gasoline and diesel, the demand for compressed natural gas is increasing. Recently, Sheila Dikshit, the chief executive of Delhi, announced that Delhi will add more than 50 compressed natural gas (CNG) stations in the short term to prevent long queues from refuelling.
At present, there are 163 compressed natural gas filling stations in Delhi, India, providing gas filling services for 225,000 vehicles. The government will build 100 new CNG refueling stations by 2010 to meet the growing demand.
Non-CNG vehicles may not enter Delhi
Recently, Sheila Dikshit, the chief executive of Delhi, stated that the Delhi government will work with the National Capital Region Planning Commission to issue an ordinance on compulsory use of CNG vehicles in Delhi. “If other states’ vehicles have not been converted to CNG, they cannot enter Delhi. ."
Prior to this, the Indian Cabinet had decided not to allow other states with vehicles weighing 3 tons or less (including light commercial vehicles) to enter Delhi unless the vehicles were converted to CNG vehicles. "The government has decided to increase the implementation of this policy. Non-CNG vehicles expanded to other states are not allowed to enter Delhi." Indian government officials said.
India intends to shorten the 200,000 heavy truck shortage of heavy truck scrap