Asia-Pacific Commercial Vehicles Market - Growth, Trends, COVID-19 impact and Forecast (2022 - 2027)

The Asia-Pacific commercial vehicle market is segmented by Vehicle Type (Light Commercial Vehicles, Medium-duty Commercial Vehicles, and Heavy-duty Commercial Vehicles), Powertrain (IC Engine Commercial Vehicles, Hybrid, and Electric Commercial Vehicles), and Country (India, China, Japan, South Korea, Australia, Indonesia, Malaysia, Thailand, Singapore, the Philippines, and Rest of Asia-pacific). The report offers market size and forecast for the Asia-Pacific commercial vehicle market in value (USD billion) for all the above segments.

Market Snapshot

asia pacific commercial vehicle_market overview
Study Period: 2018-2027
Base Year: 2021
CAGR: 4 %

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Market Overview

The Asia-Pacific commercial vehicles market was valued at USD 391 billion in 2020, and it is expected to reach USD 497 billion by 2026, registering a CAGR of around 4% during the forecast period (2021-2026).

The COVID-19 pandemic has hindered the growth of the Asia-pacific commercial vehicle market due to trade and travel restrictions imposed by the government in the region. The commercial vehicles' sales have declined due to the outbreak of COVID-19 across the region.

The commercial vehicles market across the region is experiencing a shift, as consumers are seeking affordable products due to COVID-19. This potential shift in consumer preferences has been diverted toward used vehicles. In 2020, the demand for used vehicles increased in almost every part of the world.

However, factors like increasing regulations on vehicle emissions, advancement in vehicle safety, the introduction of driver-assist systems in vehicles, and rapidly growing logistics in the retail and e-commerce sectors are anticipated to drive the demand for new and advanced commercial vehicles in the market.

Owing to the government initiatives, India, China, and Japan are likely to hold a significant share in the market during the forecast period. Moreover, investments in developing electric trucks (e-trucks) and light commercial vehicles are likely to boost the growth of the market.

Scope of the Report

A commercial vehicle is used for the transportation of cargo other than passengers. The Asia-Pacific commercial vehicle market report covers the latest trends, COVID-19 impact, followed by technological developments in the market. The scope of the report covers segmentation based on Vehicle type, Powertrain Type, and Country.

By vehicle type, the market is segmented into light Commercial Vehicles, Medium-duty Commercial Vehicles, and Heavy-duty Commercial Vehicles. By Powertrain Type, the market is segmented into IC Engine Commercial Vehicles, Hybrid, and Electric Commercial Vehicles.

By country, the market is segmented into India, China, Japan, South Korea, Australia, Indonesia, Malaysia, Thailand, Singapore, the Philippines, and the Rest of Asia-Pacific. For each segment, the market sizing and forecast have been done on the basis of value (USD billion).

By Vehicle Type
Light Commercial Vehicles
Medium-duty Commercial Vehicles
Heavy-duty Commercial Vehicles
By Powertrain Type
IC Engine Commercial Vehicles
Hybrid and Electric Commercial Vehicles
By Country
South Korea
Rest of Asia-Pacific

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Key Market Trends

The Light Commercial Vehicles Segment is Anticipated to Dominate the Market

Under the light commercial vehicles (LCVs) segment, vehicles with a gross vehicle weight rating of less than 16 metric tons have been considered, including pickup trucks, vans, light and medium trucks, and minibusses.

The shift in industrial production to Asia, especially to China, has expanded trade routes, contributing to the logistics market and indirectly to commercial vehicles. The demand for LCVs is likely to increase as the logistics and e-commerce industries are growing rapidly. For instance,

  • In February 2021, e-commerce giant, Amazon, announced a partnership with Mahindra Electric to deploy electric vehicles into its delivery network. Amazon aims to reach 10,000 EVs of fleet size by 2025.
  • Flipkart, in the same period, partnered with Hero Electric and Piaggio to achieve a 100% electric delivery fleet by 2030. These partnerships aim to improve the charging infrastructure and include more electric vehicles in the commercial vehicles sector in India.

Additionally, the rapid urbanization has created new retail and e-commerce platforms, which require efficient logistics, leading to the growth of the light commercial vehicles (LCV) market. The rapid urbanization in the ASEAN countries, like the Philippines, Thailand, Vietnam, and the rest of Asia-Pacific, is expected to drive the demand for light commercial vehicles in the region.

Asia-Pacific Commercial Vehicles Market_key market trend  1

Japan to Witness Significant Growth During the Forecast Period

Japan to witness significant growth in the region during the forecast period due to the presence of various key players in the region. Some players are also acquiring other small companies in the market. For instance,

  • In April 2021, Isuzu Motors acquired UD Trucks from the Volvo Group for an enterprise value of JPY 243 billion. The strategic alliance within commercial vehicles between the two groups is to establish a Joint Alliance Office, with facilities in Japan and Sweden, which may be overseen by an Alliance Board comprising the Isuzu Motors.

Growth in the region was also accompanied by the rising demand for alternatively powered vehicles such as plug-in hybrid, fuel cell electric vehicles, and battery electric vehicles over the past few years.

Vehicle manufacturers across the country are testing the possibilities of electric trucks, which may support the government's move from IC engine vehicles, thereby protecting the environment. On the other hand, growth in countries like Malaysia, Thailand, the Philippines, and Indonesia is likely to be driven by the rise in the e-commerce business and the dominance of local players in the region.

Asia-Pacific Commercial Vehicles Market_keymarket trend 2

Competitive Landscape

The Asia-Pacific Commercial Vehicle Market is consolidated and is led by globally and regionally established players such as Toyota Motor Corporation, ISUZU, Mitsubishi Motor Corporation, Ford, and Hino Motors. These companies adopt strategies such as new product developments, collaborations, and contracts and agreements to sustain their market position. For instance,

  • In April 2021, Isuzu Motors completed the acquisition of UD Trucks from the Volvo Group as part of the completion of a strategic alliance between the Volvo Group and Isuzu Motors.
  • In June 2020, Daihatsu Motor Co. Ltd announced the launch of its new Gran Max Cargo and Gran Max Truck*1 compact commercial vehicle.
  • In January 2020, Isuzu Motors Limited and Honda R&D Co. Ltd, an R&D subsidiary of Honda Motor Co. Ltd, signed an agreement to undertake joint research on heavy-duty trucks, utilizing fuel cells as the powertrain.

These companies have strong distribution networks at a global and regional level. Product expansion facilities, growing logistics, and e-commerce are likely to encourage the market players in the region.

Recent Developments

  • In April 2021, Tata Motors launched a new range of intermediate and light commercial trucks in the Ultra Sleek T-Series. This product launch by the company focuses on strengthening the product portfolio in the commercial vehicle segment.
  • In March 2021, Mitsubishi Fuso Truck and Bus Corporation (MFTBC), under the umbrella of Daimler Trucks Asia, announced the launch of the improved Canter Light-duty Truck, which complies with the Japanese regulations. It is scheduled to be introduced in 2021.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Challenges

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining power of Buyers

      2. 4.3.2 Bargaining Power of Suppliers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Vehicle Type

      1. 5.1.1 Light Commercial Vehicles

      2. 5.1.2 Medium-duty Commercial Vehicles

      3. 5.1.3 Heavy-duty Commercial Vehicles

    2. 5.2 By Powertrain Type

      1. 5.2.1 IC Engine Commercial Vehicles

      2. 5.2.2 Hybrid and Electric Commercial Vehicles

    3. 5.3 By Country

      1. 5.3.1 India

      2. 5.3.2 China

      3. 5.3.3 Japan

      4. 5.3.4 South Korea

      5. 5.3.5 Australia

      6. 5.3.6 Indonesia

      7. 5.3.7 Malaysia

      8. 5.3.8 Thailand

      9. 5.3.9 Singapore

      10. 5.3.10 Philippiness

      11. 5.3.11 Rest of Asia-Pacific


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Isuzu Motors Ltd

      2. 6.2.2 Mitsubishi

      3. 6.2.3 Honda Motor Company

      4. 6.2.4 Daihatsu Motor Co. Ltd

      5. 6.2.5 Ford Motor Company

      6. 6.2.6 Toyota Motor Corporation

      7. 6.2.7 Scania

      8. 6.2.8 Hyundai Motor Company

      9. 6.2.9 Fiat Chrysler Automobiles

      10. 6.2.10 BYD Co. Ltd

      11. 6.2.11 Dongfeng Motor Corporation

      12. 6.2.12 Hino Motor Ltd

      13. 6.2.13 Tata Motors

      14. 6.2.14 Mahindra & Mahindra


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Frequently Asked Questions

The Asia-Pacific Commercial Vehicle Market market is studied from 2018 - 2026.

The Asia-Pacific Commercial Vehicle Market is growing at a CAGR of 4% over the next 5 years.

The Asia-Pacific Commercial Vehicle Market is valued at 391 Billion USD in 2018.

The Asia-Pacific Commercial Vehicle Market is valued at 497 Billion USD in 2026.

Toyota Motor Corporation, Isuzu Motors Ltd, Mitsubishi, Hino Motors, Ford Motor Company are the major companies operating in Asia-Pacific Commercial Vehicle Market.

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