Analysis of the truck rental market in India
The relevance of research
Trucks and special vehicles are always in demand. Since they perform a number of specific tasks that cannot be solved without the use of special equipment. This is the transportation of goods, and the delivery of ""oversized"" with subsequent unloading, and aerial platform services, and many other specific areas.
Purpose of the study
Analysis of the state of the truck rental services market, assessment of the market size, competitor analysis, as well as identification of factors affecting the truck rental services market.
Content
Part 1. Overview of the Indian truck rental market
1.1. Definition and Characteristics of the Indian Truck Rental Services Market
1.2. Volume dynamics of the Indian truck rental services market, 2012-2017
1.3. Market structure by type of service provided in India
1.4. The structure of the market of services for the lease of freight motor transport in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis of the Truck Rental Services Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of services for the rental of freight vehicles. Identification of potential customers interested in the service
3.1. Estimation of the volume of consumption of services for the rental of freight road transport per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the market for the rental of freight vehicles until 2022
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations to existing market operators
Research excerpt
Part 1. Overview of the Indian truck rental market
1.1. Definition and Characteristics of the Indian Truck Rental Services Market
Trucks and special vehicles are always in demand. Since they perform a number of specific tasks that cannot be solved without the use of special equipment. This is the transportation of goods, and the delivery of ""oversized"" with subsequent unloading, and aerial platform services, and many other specific areas.
Car rental is the receipt of a car by the tenant for temporary use, subject to certain rules agreed by the parties to the transaction when signing the contract, which determines the degree of responsibility of the parties when using this car and reduces the likelihood of conflict situations. Often, the limit mileage is prescribed in the contract, over which additional kilometers are paid additionally. Today, the average mileage is 300 kilometers.
Renting a truck is profitable if the rent is less than the equivalent cost of buying and operating the equipment. Equivalent costs are determined taking into account all costs for the acquisition and maintenance of equipment. Leasing makes sense when the user needs the equipment/vehicle for a certain period of time, when the lessor is better able to cope with asset obsolescence risks, or when the lessor can offer maintenance at much better terms.
Benefits of renting a truck over buying: …
1.2. Dynamics of the volume of the Indian market of services for the rental of commercial vehicles, 2012-2017
During 2012-2015 the volume of the market of services for the lease of freight road transport in monetary terms has steadily increased. But in 2016, the market contracted by …% to the level of … billion Rs.
In physical terms, the volume of the truck rental market was oscillatory. Thus, in 2013 and 2015 there was a decrease in the market volume, and in 2014-2015. and 2017 - growth. According to GidMarket analysts, in 2017 the volume of the market of services for renting freight vehicles amounted to 1913,2 thousand units. technology, which is 16,8% more than in 2016.
Diagram 2. Dynamics of the market volume of services for the rental of cargo vehicles in India for the period 2012-2017 in monetary terms, million Rs.
1.3. Market structure by type of service provided in India
In recent years, such type of rental as the rental of trucks with a driver has been actively gaining popularity. If in 2016 its share in the structure of contracts concluded was 28%, then in 2017 it was 29,5%. The choice of one or another type of rental largely depends on the tasks set, the availability of time, the availability of the person who will drive the machine, or the availability of the rights of the desired category.
Diagram 3. The structure of the market of services for the rental of freight vehicles by types,%
1.4. The structure of the market of services for the lease of freight motor transport in the Union Territories
In the structure of the freight transport rental services market in the context of the Union Territories …
Diagram 4. The structure of the provision of services for the rental of freight vehicles in India by region, %
1.5. Assessment of current trends and development prospects of the studied market
The truck rental market shows … dynamics in 2017. In terms of the volume of commercial vehicle rental applications, this segment … requests for leasing and bank loans for the purchase of light trucks.
According to industry experts, in the near future, if the trend continues, this situation will lead to: …
1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
Social (demographic)
During 2011-2017 India's population is on the rise. The increase in the population in 2014 occurred not only due to migration and natural increase, but also due to the formation of two new states of the Federation - the Republic of Crimea and the city of Sevastopol. At the same time, since 2013, there has been a positive natural increase in the population. However, according to the results of 2017, natural growth has a negative value. Population growth increases the potential present and future demand for these services. Positive influence of factors
Chart 5. Population change in India, 2011-2017
Economic
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used. It is the main, most complete official indicator of public welfare. The absolute and relative values of GDP give an idea of the general material well-being of the nation and the dynamics of its growth / decrease, since the higher the level of production, the higher the welfare of the country.
Diagram 6. Dynamics of India's GDP, 2012-2017, % to the previous year
1.7. Analysis of sectoral indicators of financial and economic activity
Consider the financial and economic performance of the chauffeur-driven truck industry (…) in comparison with the performance of all sectors of the Indian economy.
Profit from the sale of services
Diagram 12. Profit (loss) in the industry, 2012-1016, million Rs.
Part 2: Competitive Analysis of the Truck Rental Services Market in India
2.1. Major players in the market
The strongest player in the Indian truck rental market is … . Today it is the market leader for commercial vehicles in India. According to statistics, every fourth western-made truck in India is ... . Total fleet of trucks …. exceeds … units in the country, which is the best indicator among foreign truck brands.
Another strong player in this market is the company ""…"", which is developing dynamically and supplies Indian dealers with high-quality equipment of the world concern …. The company ... also aims to provide customers with all the necessary services, including financing the purchase of equipment, its maintenance, remote diagnostics, buying back client cars on account of the purchase of new equipment ... . There are more than ... dealer and service centers in India ... .
As a European leader in the rental of commercial vehicles and vans, ""…"" offers a variety of rental solutions for Indian customers.
...
2.2. Market shares of the largest competitors
As of 2017, the largest operators of the truck rental market in India are …
2.3. Profiles of major players
Today, VolvoTrucks is one of the leaders in the Indian commercial vehicle market. VolvoTrucks has a wide network of authorized workshops (44) and sales offices (45) in India...
Player #2
...
Player #3
...
Player #4
...
Player #5
...
Player #6
...
Part 3. Analysis of the consumption of services for the rental of freight vehicles. Identification of potential customers interested in the service
3.1. Estimation of the volume of consumption of services for the rental of freight road transport per capita
During 2012-2017 the volume of consumption of services for the rental of freight road transport per capita was oscillatory. In 2017, the volume of consumption of services per capita amounted to … Rs./person, which is …% higher than the value of the indicator in 2016 and by …% higher than the value of the indicator in 2012. The highest value of the indicator in the study period was noted in 2015, when the volume of consumption of these services per capita amounted to … Rs./person.
Diagram 14. Volume of consumption of services for the rental of freight vehicles per capita, 2012-2016, Rs./person
3.2. Market Saturation and Estimated Market Potential in India
Truck rental is a new segment of the automotive market. This business is attractive in that it manages to avoid some of the risks inherent in other areas. At the same time, it is full of attractive advantages - it has a guaranteed profit and, with the cost of starting a business above the average (associated with the purchase of a truck), the entire subsequent service life is low-cost. Thus, the niche itself is considered to be very capacious for business.
The share of cargo transportation by road in India currently accounts for about …% of the total volume of cargo transportation. In absolute terms, this amounts to … billion tons per year.
3.3. Description of consumer preferences
Currently, cargo transportation is in great demand among entrepreneurs actively involved in various businesses. That is why automakers develop and improve trucks almost every year, increasing their power and carrying capacity, thereby meeting the growing needs of modern business.
...
3.4. Price analysis
In general, in India in January 2018, consumer price indices for truck rental services … compared to 2017. The largest increase in prices in … 2018 was observed in … Union Territories – …%. The decrease in prices was noted in ... Union Territories - by ...%.
Part 5. Forecast for the development of the market for the rental of freight vehicles until 2022
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
...
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations to existing market operators
In the Forecast Economies, more and more companies are using the truck rental service – …
Diagrams
Diagram 1. Dynamics of the market volume of services for the rental of cargo vehicles in India for the period 2012-2017 in monetary terms, million Rs.
Diagram 2. Dynamics of the market volume of services for the rental of cargo vehicles in India for the period 2012-2017 in monetary terms, million Rs.
Diagram 3. The structure of the market of services for the rental of freight vehicles by types,%
Diagram 4. The structure of the provision of services for the rental of freight vehicles in India by region, %
Chart 5. Population change in India, 2011-2017
Diagram 6. Dynamics of India's GDP, 2012-2017, % to the previous year
Chart 7. The dynamics of the US dollar against the rupee, 2015-2017, Rs. for 1 US dollar
Chart 8. Dynamics of the inflation rate in India, 2011-2017
Chart 9. Dynamics of real incomes of the population of India, 2011-2017
Chart 10. The volume of paid services to the population in India, trillion Rs., 2012-November 2017
Diagram 11. Dynamics of the average interest rate on loans to legal entities, 2013-2017
Diagram 12. Profit (loss) in the industry, 2012-1016, million Rs.
Diagram 13. Shares of the largest competitors in the market of truck rental services in 2017, in %
Diagram 14. Volume of consumption of services for the rental of freight vehicles per capita, 2012-2016, Rs./person
Diagram 15. Forecast of the volume of the market of services for the rental of freight vehicles in 2018-2022, billion Rs.
Tables
Table 1. Truck rental classification.
Table 2. Industrial production index by state of India (in % of the previous year), 2011 - 2017
Table 3. The dynamics of the US dollar against the rupee, Jan. 2015-Jul. 2017, Rs. for 1 US dollar
Table 4. Dynamics of the inflation rate, the refinancing rate of the Central Bank of India and the key rate of the Central Bank of India, 2011-Feb. 2018
Table 5. Weighted average interest rates of credit institutions on credit operations in rupees (% per annum), 2013-2017
Table 6. STEP-analysis of factors influencing the truck rental market
Table 7. Gross margin of the chauffeur-driven truck rental industry compared to all industries in India, 2012-2016, %
Table 8. Profitability of profit before tax (profit of the reporting period) in the service of renting a truck with a driver in comparison with all sectors of the Indian economy, 2012-2016, %
Table 9. Current liquidity (total coverage) in the service of renting a truck with a driver for 2012-2016,
Table 10. Absolute liquidity in the chauffeur-driven truck rental service industry compared to all sectors of the Indian economy, 2012-2016, times
Table 11. Business activity (average receivables turnover period) in the field of truck rental services with a driver, for 2012-2016, days.
Table 12. Financial sustainability (capacity of own working capital) in the service of renting a truck with a driver, in comparison with all sectors of the Indian economy, 2012-2016, %
Table 13. Main companies participating in the truck rental market in 2017
Table 14. Dynamics of the total revenue of the largest market operators (TOP-5) in India, 2012-2017, billion Rs.
Table 15. Price indices for India in 2014-2018 (Jan) %
Table 16. Average prices for truck rental services in the Union Territories, 2014-2018, thousand Rs. (light-duty vehicles, using the Gazelle as an example)
Table 17. Average prices for truck rental services in the Union Territories, 2014-2018, thousand Rs. (heavy duty vehicles)
Table 18. Assessment of factors of investment attractiveness of the market of services for renting freight vehicles
All reports