Forecast 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 market in India, assessment of the market size, analysis of competitors, as well as identification of factors affecting the truck rental market
Content
Chapter 1. Key components of the truck rental market
1.1. Market size
1.2. Growth rates of the truck rental market
1.3. Truck rental market trends
1.4. The main problems of the industry
1.5. Stage of the life cycle of the truck rental market
1.6. Estimation of the number of buyers and their financial capabilities
1.7. Estimated consumption per capita
1.8. Analysis of sectoral indicators of financial and economic activity
1.9. Price analysis
Chapter 2
2.1. Economic components
2.2. Social Components
2.3. Technological components
2.4. Political Components
2.5. STEP-analysis of the truck rental market
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
3.2. Number of competitors and relative market shares of the largest competitors
3.3. Compact location of industry companies in certain regions
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
4.2. Analysis of the impact on the state aid industry at the current date
4.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers existing in the truck rental market
4.4. Prospects and growth drivers for the truck rental market
4.5. Forecast for the development of the truck rental market in the context of the current economic crisis due to covid-19
Chapter 5 Forecasting Methodology
5.1. Methods for forecasting key industry indicators
5.2. Sources of information for forecasting
5.3. Timing of forecasting
Research excerpt
Chapter 1. Key components of the truck rental market
1.1. Market size
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 delivery ...
Renting a car is getting…
In countries with predictable economies, more and more companies use the truck rental service – for example, in the USA this market segment reaches …%, in Europe …
Renting a truck is profitable if the rent is …
According to GidMarket analysts, the volume of the truck rental market in India in 2020 amounted to … mln Rs. At the same time, in recent years, such type of rental as …
1.2. Growth rates of the truck rental market
Consider the volume dynamics of the truck rental market in India.
During 2016-2020 the volume of the market for these services in monetary terms is unchanged …, but in 2020 it was noted ... At the end of 2020, the volume of the truck rental market amounted to … billion Rs., … relative to 2019 …%, and relative to 2016 by … % (by … billion Rs.). …tdynamics in 2016-2020 primarily due to an increase in...
Diagram 1. The volume of the truck rental market, 2016 - 2020, billion Rs.
1.3. Truck rental market trends
The truck rental market shows in 2016-2020. … dynamics. According to industry experts, in the near future, if the trend continues, this situation will lead to:
to active ...;
...
The main demand among tenants is ...
The range of transportation is growing, which has …
...
Regular monthly growth was observed in 2020… As of April 1, 2020, in India, … million vehicles, … thousand freight carriers and logistics companies were registered in the system. As of April 1, 2021 — …
There is an acute problem in the freight transportation market: the fleet of small and medium-sized carriers …
1.4. The main problems of the industry
Despite the growing demand for transport and logistics services, there are enough …
The main problems of the market that appear on the way of its development:
weak ...;
absence …;
...
According to industry experts, Indian logistics lacks...
There are problems in the market with...
One of the main stop factors for the development of the market is the availability of …
Vehicle owners who rent it out always purchase a car ...
1.5. Stage of the life cycle of the truck rental market
In terms of life cycle, the truck rental market is at the stage of …
This is evidenced by:
...;
...;
market growth potential...
Market competition...
Pricing becomes...
The main task of marketing at this stage is ...
1.6. Estimation of the number of buyers and their financial capabilities
...
1.7. Estimated consumption per capita
During 2016-2020 the volume of consumption of rent of freight road transport per capita ... In 2017-2019. … indicator was noted from …% in 2017 to …% in 2019. But due to the current situation in 2020, the growth in consumption of the studied services per capita …%. At the end of 2020, the volume of consumption in the truck rental market amounted to … Rs./person. The average annual growth rate in the study period was …%, and the growth of the indicator since 2016 was …%.
1.8. Analysis of sectoral indicators of financial and economic activity
Important data for analyzing the state of the industry is the dynamics of such indicators as profitability, liquidity, and business activity.
Gross margin is gross profit divided by...
For the period under review from 2016 to 2020, the dynamics of the gross margin indicator in the industry had ... From 2016, gross margin …% to …% in 2020. -2016 has ... According to the results of 2018 and 2019, the gross margin of the industry was at ... p.p. and … p.p. respectively … the average for all sectors of the Indian economy.
...
Return on profit
The profitability of profit before taxation in the field of renting road freight transport fluctuated in the period under review from …% to …%. Regarding profitability in all industries of India, the indicators in the study period were ... indicators of the Indian economy (with the exception of ... years). At the end of 2020, the value of the indicator is …%, which is …
Chart 4. Profitability before tax (profit of the reporting period) in the field of road freight transport in comparison with all sectors of the Indian economy, 2016-2020, - ,
Consider liquidity indicators in the truck rental industry. The current liquidity ratio is a measure of...
Current liquidity
Values of current liquidity in the industry in 2016-2020 were in the range of ... times. The higher the value of the current liquidity ratio, the higher ...
At the same time, in world practice, the coefficient in the range of …
Absolute liquidity
A more stringent liquidity criterion is the absolute liquidity ratio. It shows which part...
The normative value of the absolute liquidity ratio is within ... Such a value of the absolute liquidity ratio means that ... In 2020, the indicator was fixed within the specified norm - ...
Truck rental industry in 2016-2020 in general, it has absolute liquidity indicators of more than ... than in all sectors of the economy.
Business Activity Indices
Business activity is the ability of an enterprise, based on the results of its economic activity, to occupy ...
For the period from 2016 to 2020, the average term of receivables was within … days.days. In 2020, the value of the indicator for the industry amounted to … days, which is by … p.p. ... than in all sectors of the Indian economy as a whole.
Financial stability
The stability of the financial position of the enterprise is impossible without effective management of working capital, based on the identification of significant factors and measures to provide the enterprise with its own working capital.
The equity ratio characterizes ...
Financial stability indicators in 2016-2020 were … normative value (…%), which indicates ...
In this way…
1.9. Price analysis
There are quite a few factors that affect the cost of renting trucks. These include ...
In general, in India in 2020, consumer price indices for truck rental services are almost … compared to 2019, …%. The largest increase in prices in 2020 was observed in … Union Territories – …%. The price reduction was noted in…
For 5 months 2021 tariffs …% compared to the same period in 2020
Table 5. Consumer price indices in the truck rental market in India, 2016-2021 (5 months), %
In 2020, the average price for renting light-duty freight vehicles (Gazelle) was … Rs. for ... an hour shift. The highest price is in … Union Territories – … Rs. per shift, the smallest - ...
In 2020, the average freight transport rental price is … Rs. for ... an hour shift. The highest price in…
Chapter 2
2.1. Economic components
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced ...
The impact of the crisis, which began in 2008, led to a decrease in GDP by …% in 2009, but then the growth rates were quite high until 2012 inclusive. In 2013-2014 observed...
The decline in India's GDP in 2020, according to the second estimate of Rosstat, amounted to …%, which is better than the forecast of the Ministry of Economic Development, which assumed a fall of …%. The volume of GDP in current prices amounted to … trillion Rs. The decline in GDP in 2020 is due to …
According to the results of the first quarter of 2021, the volume of GDP …
2.2. Social Components
...
2.3. Technological components
...
2.4. Political Components
...
2.5. STEP-analysis of the truck rental market
We combine all these factors in the form of a STEP analysis.
According to the results of the performed STEP-analysis, macro-environment factors have a greater influence on the truck rental market. Economic, technological and social factors have…
Holding back market development in 2021: …
The positive impact on the market is...
Table 10. STEP analysis of factors influencing the truck rental market
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
In India, truck rental services are provided by ... organizations ... of which are legal entities, and the rest ... companies operate in the form of individual entrepreneurship.
On a global scale, the number of players is much larger, as is the longer period during which this market ...
3.2. Number of competitors and relative market shares of the largest competitors
Taking into account the total number of companies that operate in the studied market, only … of them or … % are active market players. The main companies that form a significant market share include:
- OOO ""…"";
- OOO ""…"";
- ...
At the end of 2020, the largest player in the researched market in India is LLC “…”, occupying …% of the market. The second place is occupied by “…” LLC, whose share is …%. On the third - ... The share of other operators in addition to the TOP-5 accounts for ...% of the market, which indicates a large ...
The calculation data of the Herfindahl-Hirschman Index of the truck rental market in India (Index = ...) show that this market belongs to ...
Estimating the total revenue of market leaders is made difficult by the fact that market operators provide data ...
Diagram 14. Dynamics of the total revenue of the largest operators of the market for renting commercial vehicles (TOP-5) in India, 2016–2020
3.3. Compact location of industry companies in certain regions
Most of the companies providing truck rental services in India are located in ... India.
...
The largest number of organizations is concentrated in the cities of … (…%) and … (…%). In addition, a significant number are…
The smallest number of players in the studied market are represented in the states of … Union Territories, with the exception of … In their territories, on average, ...
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
In 2020, the Indian economy is facing…
Table 12. Assessment of the impact of recent crises on the industry
4.2. Analysis of the impact on the state aid industry at the current date
Forecasting the development of the truck rental market in India is impossible without understanding the economic situation in the country, as well as the impact of the spread of the covid-19 virus and the measures taken.
...
The vast majority of the support measures announced by the president and the government concern …
4.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers existing in the truck rental market
...
4.4. Prospects and growth drivers for the truck rental market
...
4.5. Forecast for the development of the truck rental market in the context of the current economic crisis due to covid-19
...
Chapter 5 Forecasting Methodology
...
Diagrams
Diagram 1. The volume of the truck rental market, 2016 - 2020, billion Rs.
Figure 2. Life cycle stage of the truck rental market
Diagram 3. Volume of consumption in the rental market of freight vehicles per capita, 2016-2020, Rs./person
Diagram 4. Profitability of profit before tax (profit of the reporting period) in the field of renting road freight transport in comparison with all sectors of the Indian economy, 2016-2020, %
Diagram 5. Current liquidity (total coverage) in the field of renting road freight transport for 2016-2020, times
Diagram 6. Business activity (average term of receivables turnover) in the field of renting road freight transport, for 2016-2020, days days
Diagram 7. Dynamics of India's GDP, 2015-2021 (Q1), % to the previous year, trillion Rs.
Chart 8. Monthly dynamics of the US dollar against the rupee, 2017-June 2021, Rs. for 1 US dollar
Chart 9. Dynamics of the inflation rate in India, 2016-2021 (June), %
Diagram 10. Dynamics of the population of India, as of January 1, 2012-2021, million people, thousand people
Diagram 11. Population forecast in India for the period 2021-2024, million people
Chart 12. Dynamics of real disposable income of the population of India, 2012-2020
Diagram 13. Dynamics of the average interest rate on loans, 2015-2020, %
Diagram 14. Dynamics of the total revenue of the largest operators of the market for renting commercial vehicles (TOP-5) in India, 2016–2020
Figure 15. Spatial concentration of companies in the truck rental market as of July 21.07.2021,
Diagram 16. Compact location of companies in the industry in certain regions, %
Diagram 17. Forecast for the development of the truck rental market in India in 2021-2025, billion Rs.
Tables
Table 1. Truck rental classification
Table 2. Gross profitability of the truck rental industry in comparison with all sectors of the Indian economy, 2016-2020, %
Table 3. Absolute liquidity in the rental of road freight transport in comparison with all sectors of the Indian economy, 2016-2020, times
Table 4. Financial stability (security of own working capital) in the field of renting road freight transport in comparison with all sectors of the Indian economy, 2016-2020, %
Table 5. Consumer price indices in the truck rental market in India, 2016-2021 (5 months), %
Table 6. Average prices in the rental market for trucks (light duty vehicles) by Union Territories, 2016-2021, Rs./shift
Table 7. Average prices in the rental market of commercial vehicles (heavy duty vehicles) across the Union Territories, 2016-2021, Rs./shift
Table 8. Industrial production index by state of India (in % of the previous year), 2015 - 2020
Table 9. Average weighted interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2015-2020 (Oct.)
Table 10. STEP analysis of factors influencing the truck rental market
Table 11. Main companies participating in the truck rental market in 2020
Table 12. Assessment of the impact of recent crises on the industry
Table 13. List of sectors of the Indian economy most affected by the deterioration of the situation as a result of the spread of a new coronavirus infection (as of October 16, 2020)
Table 14. Analysis of the impact on the industry of the state aid proposed to date
Table 15. Forecast indicators of the development of the Indian economy in 2021-2023
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