At a time when the commercial vehicle (CV) market is reeling under the slowdown, it?s the sub-3.5 tonne light commercial vehicle (LCVs) segment that is playing the messiah, cushioning the former from falling further. This is indicative from the performance of the LCV segment which has seen a fall of just 7%, compared to medium and heavy commercial vehicle (M&HCV) segment which saw a dip of 33% during April to March 2009.

Overall, the CV market was down by 22% in the period. The industry is expected to growth at a rate of 6%-8% in FY10 over FY09.

Stating that the LCV segment played the barrier in the further fall of the CV market, Sanjay Vasudevan, industry analyst Frost & Sullivan said, ?The share of LCVs in the total sales of CVs is expected to grow steadily due to changes in the freight movement system, such as hub-and-spoke model and improvement in road infrastructure. Currently, the share for the FY?08 stands at around 52.2%.? This is also due to the increase in the offerings in the segment by different players.

?Domestic companies, with a significant three wheeled goods carrier portfolio, are anticipated to rush into the sub-3.5 tonne four-wheeled commercial vehicles, to keep abreast with the market trend for instance Piaggio Ape Truk,? said Vasudevan.

?Growth will be largely driven by the sub-one tonne category for last mile transport requirements due to increase in the retail and intra-city goods transportation needs.?

Typically, LCV segment comprises of products up to 7.5 tonne. However, it was the sub-3.5 tonne that saw maximum growth. Companies like Mahindra & Mahindra (M&M), Ashok Leyland with Nissan and Bajaj Auto have also shown interest in the sub-3.5 tonne segment.

Tata Motors, who revolutionised the LCV segment with its sub-one tonne Ace, is working on more variants from the platform.

Also, the CV market is expected to be polarised with the medium commercial vehicle (MCVs) segment loosing its charm with dwindling volumes over the years. ?We are witnessing a change in the profile of CV makers. It is LCV and HCV now,? said Arindam Chakrabarti, practice head-automotive and engineering, Tata Strategic Management Group.

The share of MCVs in the total volumes has come down from 38% in 2004-05 to 27.4% in 2008-09. The MCV segment comprises products in the range of 7.5 to 16.2 tonne.

Mudit Gupta, project manager, industries – automotive, logistics and utilities, Datamonitor, said, ?The LCV segment is expected to grow at a compounded average growth rate of 20% in the next three years and see maximum action, as far as launches are concerned.?

He also added that the segment was growing at 41% pre-October 2008, when the economic slowdown struck.