Executive Analysis of MD-HD Value Truck Market in Select
Emerging Economies Value Truck Sales in China, India, Indonesia, and Africa to Reach Over 800
Thousand Units by 2022
BRIEF SUMMARY
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Contents
Section Slide
Number
Executive Summary 4
Definitions & Segmentation 10
Market Overview 12
Value Truck Market Outlook 17
Product Positioning 22
OEM Value Truck Strategies 32
Regional Market Analysis 39
China 40
India 45
Indonesia 50
Africa 55
Key Conclusions, Future Outlook and Predictions 60
Appendix 63
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Executive Summary — Key Findings
Value Truck Market : Key Findings, Global, 2014
3
4
5
1
China-India centric development. With 70 percent of all global value trucks to be sold in
China and India by 2022, OEMs are expected to develop value platforms based on these two
markets in the short-medium term. However these platforms will feature attributes enabling
global scalability in the long term.
Product differentiation strategies by Global OEMs for value truck to be centered around
powertrain upgrade, safety, cab features, and telematics solutions. Larger engines, better
safety, more comfort, and track and trace telematics to be key features of these trucks.
Greater degree of variance from low-cost trucks will offer western OEMs such as Daimler,
Volvo, MAN etc the chance to derive greater ROI from TRIAD based technologies, and also
faster payback to Asian OEMs for R&D dollars spent in building these trucks.
Fastest growing segment in the global trucking Industry. The medium-heavy duty value truck
segment in key emerging markets of China, India, Indonesia and Africa is expected to grow at
a CGAR of 12 .3 percent to reach over 800 thousand units by 2022.
2 Most attractive sub-segment for platform development. By 2022, 75% of all value trucks
built globally will be attributed to platform based development and manufacturing.
Key: TRIAD—The European Union, North America, and Japan; OEM—Original Equipment Manufacture;
CAGR—Compounded Annual Growth Rate Source: Frost & Sullivan
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Executive Summary— Total Truck Market Outlook — Select Regions By 2022 one out of three trucks sold in China, India, Indonesia, and Africa collectively will be a value truck;
China alone to account for two out of three of these sales.
Source: Frost and Sullivan
2014 2022
1.33 M
2.27 M
Value Truck Market: Total Truck Market Outlook, Select Regions , 2014-2022
Value Trucks,2022
16%
35.3%
48.6%
7.3 %
23.8 %
68.9 %
China 68%
India 17%
Africa 10%
Indonesia 5%
Growth in value truck sales will largely be experienced at the expense of market share taken from higher
end of low-cost truck market. Also noticeable is the rise in premium truck sales in China, India, Indonesia,
and Africa.
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Powertrain Cab Features Safety
Systems Telematics Chassis
Pric
e P
oin
t Te
ch
no
log
y
Pre
miu
m
ABS
Pneumatic
ABS + ESC
EBS
ISS, Active
Systems
Track &
Trace
Passive
Systems
Basic
Pneumatic Basic PS,
Leaf Springs
PS+
Telescopic
Adjustable
Active
Steering/
Suspensions
Leaf Springs
+ Shock
Absorbers
Analog
Display
Crash
Certification
Digital
Display,
Adjustable
Seats
A/C Cabins
Infotainment
Advanced
Cab Systems
Driver
Management
Vehicle
Management
Geo
Fencing
ECO driving
NA Engine
Turbos
Light
weighting
EGR
Advanced
Valve Train
Natural Gas
Hybrid
Engine
Brakes
Executive Summary— Value Truck Technology Clusters Mapping sub-system clusters to specific regional market requirements is imperative for successful product
positioning strategies.
Value Truck
Product Boundary
Low
-co
st
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China Indonesia India
HD
M
D
Tata Prima LX
AL Captain
AL Boss
U Truck
VE Pro
VE Pro
CNHTC Howo T5-G
FAW J6P
JAC HF Series
SIAC IVECO Genylong
Auman GTL
Foton Aumark
Isuzu FPR
Quester CG
Fuso FE
CV Outlook: Value Truck Partial Product Portfolio, Key Emerging Markets, 2015
Executive Summary— Major Value Truck Models in Selected Markets 4 emerging markets show considerable activity in the value truck segment; Evolving European and Chinese
OEM product positioning will continue to challenge Japanese OEMs in this segment
BharatBenz 2523
Source: Frost & Sullivan
Africa
Isuzu F-Series
Fuso FE 7 136
Hino 700
Quester CWE
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Executive Summary— Value Truck Market — Powertrain Profile Fuel efficient180-300HP diesel engines coupled with 6-12 Speed manual transmissions reported by most OEMs
as most desirable configuration for value trucks in China, India, Indonesia, and Africa
Value Truck Market: OEM Powertrain Range, Key Emerging Markets, 2014
0 100 200 300 400 500
BEIBEN
CAMC
CNHTC
DongFeng
FAW
Foton
JAC
SAIC-IVECO
AMW Trucks
Ashok Leyland
BharatBenz
Eicher
Mahindra
Tata Motors
Hino
Isuzu
Mitsubishi FUSO
UD
Fuso
Isuzu
Hino
Engine Power (HP)
China
India
Indonesia
Africa
• Value positioning is rapidly moving
towards the higher ranges of 350-
400HP in China.
• Fleets are willing to pay a premium
for higher powered trucks as the road
infrastructure expands to
accommodate bigger trucks with
higher power engines.
• Engine HP in Indian value trucks
is likely to move upwards albeit
slowly compared to China in the
short term.
• Power range to move towards
280-310HP range in line with fleet
requirements through to 2022.
Global Bandwidth 2014 Focus Areas 2018-2022
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Parameters Current Outlook (2014) Future Outlook (2022)
Forecasts Value truck unit shipments in China, India,
Indonesia and Africa: 316K units
Value truck unit shipments in China, India, Indonesia
and Africa: 800K units
Value Offering
Powertrain: Power/Torque Upgrade
Safety: ABS, passive technologies
Telematics: Track and Trace
Cab: A/C cabs, comfort adjustable seats
Chassis: Power steering, Shock Absorbers
Powertrain: Natural Gas, engine brakes, SCR
Safety: ESC, EBS and Active safety systems
Telematics: Diagnostics, driver/Vehicle management
Cab: Infotainment, digital interfaces
Chassis: Active suspensions and steering
Platforms
Platform sharing for value trucks is around 40-45
percent globally.
Platform commonality is restricted to frame,
drivetrain and axles systems,
Platform sharing for value trucks to feature 65-
70percent commonality across various markets in the
global value truck market
Platform sharing is expected to be extended to cabin,
safety and chassis technology clusters, telematics
systems, powertrain systems and others.
Manufacturing Current value truck manufacturing bases are
located in China, India and Japan predominantly
A bulk of global production to be centered in China
and India, however production bases to shift to
emerging value truck markets in APAC, Africa and
Latin America.
Executive Summary— Current and Future Outlook
Value Truck Market : Current and Future Outlook, Global, 2014–2022
Source: Frost & Sullivan
Buoyed by the integration of premium-features at competitive costs owing to improved platform sharing
strategy ,the value truck segment will grow to over 800,000 units in key emerging markets by 2022.
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Classification
MDT (Medium Duty Trucks): >= 6 ton - 16 ton
HDT (Heavy Duty Trucks): >= 16 ton
Weight Segments
Regions Covered China India
Indonesia Africa
Key Assumptions • Price segments are classified according to various regions based on
the local market conditions.
• Markets such as India, China and Africa clearly have a segment
between low and premium segments, where the price, specifications
and features fall right between the two. This segment here is defined
as the ‘value segment’.
• In markets such as South America, North America, and Western
Europe the trucks are classified into only low and premium, as there
is no intermediate space to be classified as value.
• Another distinction to be made is that these segmentations are
region specific and may overlap. For example: Trucks in the value
segment in China and India may be similar to those in the low-cost
segment in Western Europe and North America. Source: Frost and Sullivan
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Market Engineering Methodology
One of Frost & Sullivan’s core deliverables
is its Market Engineering studies. They are
based on our proprietary Market
Engineering Methodology. This approach,
developed across the 50 years of
experience assessing global markets,
applies engineering rigor to the often
nebulous art of market forecasting and
interpretation.
A detailed description of the methodology
can be found here.
Source: Frost & Sullivan
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