Market Overview
| Study Period | 2017 - 2029 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2029 |
| Market Size (2025) | USD 516.9 Billion |
| Market Size (2029) | USD 659.9 Billion |
| Growth Rate (2025 - 2029) | 6.30% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Light Commercial Vehicles Market Analysis by Mordor Intelligence
The Light Commercial Vehicles Market size is estimated at 516.9 billion USD in 2025, and is expected to reach 659.9 billion USD by 2029, growing at a CAGR of 6.30% during the forecast period (2025-2029).
The light commercial vehicles (LCV) industry is experiencing significant transformation driven by evolving consumer behaviors and the acceleration of digital commerce. The exponential growth of e-commerce, which generated USD 26.7 trillion in global sales by 2021, has fundamentally reshaped logistics requirements and delivery patterns. This shift has catalyzed demand for more efficient and versatile commercial vehicles, particularly in urban areas where last-mile delivery optimization is crucial. The integration of advanced technologies in LCVs, including telematics and route optimization systems, is becoming increasingly prevalent as fleet operators seek to enhance operational efficiency and reduce costs.
Infrastructure development and urbanization continue to play pivotal roles in shaping the light commercial vehicle market landscape. The construction sector's recovery and the expansion of smart city initiatives across major economies have generated substantial demand for light commercial vehicles. Municipal authorities and private developers are increasingly prioritizing sustainable urban logistics solutions, leading to the establishment of urban consolidation centers and green delivery zones. These developments are compelling manufacturers to adapt their product offerings to meet evolving urban mobility requirements while adhering to stricter environmental regulations.
Manufacturing strategies in the light commercial vehicle industry are undergoing substantial evolution, with major manufacturers implementing advanced production technologies and restructuring their supply chains for greater resilience. A notable example is Toyota's December 2022 announcement of a USD 1.29 billion investment in a new battery manufacturing facility in North Carolina, highlighting the industry's commitment to future mobility solutions. Companies are increasingly adopting flexible manufacturing systems that can accommodate both traditional and alternative powertrains, ensuring adaptability to changing market demands and regulatory requirements.
Strategic partnerships and industry consolidation are becoming increasingly prevalent as companies seek to share development costs and accelerate innovation. Ford's introduction of the all-electric E-Transit in the UK in April 2022 exemplifies this trend, demonstrating the industry's commitment to sustainable transportation solutions. Manufacturers are forming alliances with technology providers, charging infrastructure developers, and logistics companies to create comprehensive mobility ecosystems. These collaborations are essential for addressing the complex challenges of the modern commercial vehicle industry, from vehicle electrification to connected fleet management solutions.
Global Light Commercial Vehicles Market Trends and Insights
The rising global demand and government support propel electric vehicle market growth
- Electric vehicles (EVs) have become indispensable in the automotive industry, driven by their potential to enhance energy efficiency and reduce greenhouse gas and pollution emissions. This surge is primarily attributed to growing environmental concerns and supportive government initiatives. Notably, global EV sales witnessed a robust 10.82% growth in 2022 compared to 2021. Projections indicate that annual sales of electric passenger cars will surpass 5 million by the end of 2025, accounting for approximately 15% of total vehicle sales.
- Leading manufacturers and organizations, like the London Metropolitan Police & Fire Service, have been actively pursuing their electric mobility strategies. For instance, they have set a target of a zero-emission fleet by 2025, with a goal of electrifying 40% of their vans by 2030 and achieving full electrification by 2040. Similar trends are expected globally, with the period from 2024 to 2030 witnessing a surge in demand and sales of electric vehicles.
- Asia-Pacific and Europe are poised to dominate electric vehicle production, driven by their advancements in battery technology and vehicle electrification. In May 2020, Kia Motors Europe unveiled its "Plan S," signaling a strategic shift toward electrification. This decision came on the heels of record-breaking sales of Kia's EVs in Europe. Kia has ambitious plans to introduce 11 EV models globally by 2025, spanning various segments like passenger vehicles, SUVs, and MPVs. The company aims to achieve annual global EV sales of 500,000 by 2026.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Africa's demographic evolution demonstrates consistent growth with a notable acceleration in recent years
- Several European countries are facing population declines, while others are growing, indicating a need for targeted policy interventions
- North America's demographic story highlights steady growth and adaptability, with each nation contributing uniquely to the region's vibrant mosaic, underlining its continued global significance
- Despite a GDP per capita decline in 2022-2023, Africa shows potential for future economic stability through trade agreements and infrastructure development
- Europe's GDP per capita is on track for steady growth, reflecting resilience and strategic policies
- Despite challenges in 2020, by 2023, the US experienced growth, Mexico displayed a robust recovery, while Canada witnessed a dip
- South Africa's consumer vehicle population shows signs of stabilization
- European countries are experiencing growth in CVP, driven by government incentives for eco-friendly vehicles
- North America exhibits diverse trends in CVP, with Canada experiencing a slight decrease, the US seeing an increase, and Mexico showing significant growth
- South Africa, Kenya, and Morocco exhibit declining inflation rates, while Nigeria faces a sharp inflation increase
- Europe is poised for economic stability, with concerted efforts to manage inflation and foster a balanced economic landscape
- From 2017 to 2023, North America, particularly countries like the US and Canada, navigated inflationary spikes, especially post-pandemic in 2022
- Auto interest rates across Africa, Asia-Pacific, and North America showed significant regional diversity, influenced by a combination of economic policies, market dynamics, and global conditions
- Battery pack prices in Africa continued to decline from USD 186 in 2022 to USD 176 in 2023, driven by technological advancements and increased market competition
- Declining battery prices and government initiatives drive demand for electric vehicles in Europe
- Declining prices of lithium-ion batteries drive the demand for electric vehicles in North America
- The global automotive industry will undergo a transformative phase, with a pronounced shift toward electrification from 2023 to 2025, followed by a period of refinement and consolidation in the subsequent years
- Asia-Pacific is witnessing a resurgence in the logistics performance index, driven by infrastructural developments and technological advancements
- The Middle East, led by the UAE, Saudi Arabia, and Qatar, invested in logistics infrastructure and technology despite challenges from geopolitical tensions
- South America's diverse landscape and resources pose unique logistics challenges
- The auto industry's production landscape is witnessing a dramatic shift, with electric vehicle manufacturers like BYD Auto and Tesla seeing remarkable growth while traditional giants like GM adapt to changing market demands
- Countries like Australia, India, and Indonesia project a steady upward trajectory in GDP per capita, suggesting robust economic strategies and potential investment in the automotive industries
- Saudi Arabia and UAE, both pivotal nations in the Middle East, demonstrated population growth from 2017 to 2023. While there were slight dips for both countries in between, the overarching upward trend indicates their significant roles and attractions in the region
- South America's demographic narrative, represented by Brazil and Colombia, showcases a story of consistent growth, with Brazil experiencing a pronounced surge
- Asia-Pacific displays a panorama of economic evolution: from the relentless pursuits of emerging economies to the recalibrations of established ones, painting a picture of resilience, adaptation, and ambition
- Projections for the coming years indicate a steady growth trajectory for both the UAE's diversified sectors and its role as a regional business hub. This growth can be attributed to the country's focus on diversification efforts and strategic partnerships
- During 2017-2030, Brazil and Colombia displayed contrasting economic paths. While both faced downturns around 2020, Brazil's GDP per capita showed recovery by 2023, whereas Colombia witnessed a slight decline
- The Asia-Pacific's diverse consumer spending trends on vehicle purchases not only reflect the region's evolving economic conditions but also highlight the shifting consumer preferences and vehicular market dynamics across countries
- In the short term (2022-2023), Saudi Arabia maintained stable consumer spending for vehicle purchases, while the UAE experienced a slight decline, suggesting differing market dynamics
- Brazil and Colombia are expected to see an increase in consumer spending for vehicle purchases (CVP), indicating a recovering automotive market and growing consumer confidence
- Asia-Pacific’s varied inflation rates reflect the diverse economic challenges and responses of each nation, from battling pandemic-induced fluctuations to aiming for future stability through strategic economic policies
- From 2017 to 2030, the Middle East is expected to display varied inflationary patterns, with countries like Iran facing significant challenges, while others like Saudi Arabia and the UAE expected to show stability
- Projections indicate a trend toward economic stabilization and controlled inflation in the region, highlighting a concerted push to restore equilibrium and foster growth
- Global efforts to expand and enhance EV infrastructure are signaling a collective push toward electrification
- The demand for EVs in Asia-Pacific is fueled by falling battery prices
- The Middle East's battery market: A continuous descent in prices and promising energy trends
- South America’s surging demand for electric vehicle batteries: falling costs and strategic alliances
- Africa's vastness posed logistics challenges, yet hubs like South Africa and Kenya emerged strong. By 2023, initiatives like AfCFTA and infrastructure projects improved connectivity, but challenges remained
- Europe's advanced logistics, driven by the EU's open trade policies, has faced challenges like Brexit. With a focus on sustainability and technology in 2023, Europe was expected to remain a global logistics leader, poised for further innovation and adaptation
- North America has a diverse terrain that presents unique logistics challenges, but in 2023, the United States, Canada, and Mexico achieved high LPI rankings
- For over a year, Russia's invasion of Ukraine disrupted global crude oil and petroleum product markets
Segment Analysis: Vehicle Type
Light Commercial Pick-up Trucks Segment in Light Commercial Vehicles Market
The light commercial pick-up trucks segment dominates the global light commercial vehicles market, commanding approximately 87% market share in 2024. This substantial market presence is driven by the segment's versatility in serving diverse industries, from construction and agriculture to last-mile delivery services. The segment's growth is primarily fueled by the expanding e-commerce sector, heightened demands for swift and dependable deliveries, and a growing preference for eco-friendly vehicles. Pick-up trucks have emerged as the preferred choice in the light commercial vehicle market globally, particularly due to their adaptability in both urban and rural environments. The segment's robust performance is further strengthened by notable advancements in battery technology, leading to extended ranges and faster charging times, which are bolstering the practicality and appeal of these vehicles for commercial applications. Additionally, manufacturers' shift toward skateboard architecture in light commercial vehicles is gaining traction, emphasizing heightened efficiency and productivity.
Light Commercial Vans Segment in Light Commercial Vehicles Market
The light commercial vans segment represents a crucial component of the market, serving as the backbone of urban logistics and delivery operations. These vehicles are particularly well-suited for navigating congested city streets and providing efficient last-mile delivery solutions. The segment has witnessed significant transformation with the introduction of electric variants, addressing growing environmental concerns and meeting stringent emission regulations in urban areas. Manufacturers are increasingly focusing on developing innovative features and technologies specifically for commercial vans, including advanced safety systems, improved cargo management solutions, and enhanced driver comfort features. The segment's evolution is closely tied to the changing dynamics of urban mobility and the growing emphasis on sustainable transportation solutions in metropolitan areas.
Segment Analysis: Propulsion Type
ICE Segment in Light Commercial Vehicles Market
The Internal Combustion Engine (ICE) segment continues to dominate the global light commercial vehicles market, commanding approximately 89% market share in 2024. This dominance is primarily attributed to the widespread availability of fuel infrastructure, lower initial vehicle costs, and established manufacturing capabilities. The segment encompasses gasoline, diesel, CNG, and LPG-powered vehicles, with gasoline and diesel variants accounting for the majority of sales. The robust aftermarket support, extensive service network, and proven reliability of ICE vehicles continue to make them the preferred choice for commercial fleet operators, particularly in regions with developing charging infrastructure for alternative powertrains.
BEV Segment in Light Commercial Vehicles Market
The Battery Electric Vehicle (BEV) segment is experiencing remarkable growth in the light commercial vehicles market, projected to expand significantly between 2024 and 2029. This growth is driven by increasing environmental regulations, government incentives, and the rising demand for sustainable transportation solutions in urban logistics. Fleet operators are increasingly recognizing the long-term cost benefits of electric vehicles, including lower operational and maintenance expenses. The segment's expansion is further supported by improvements in battery technology, extended vehicle range capabilities, and the rapid development of charging infrastructure across major markets.
Remaining Segments in Propulsion Type
The other propulsion segments in the light commercial vehicles market include Fuel Cell Electric Vehicles (FCEV), Hybrid Electric Vehicles (HEV), and Plug-in Hybrid Electric Vehicles (PHEV). These segments represent transitional technologies bridging the gap between traditional ICE vehicles and fully electric solutions. HEVs offer improved fuel efficiency while maintaining the convenience of traditional fueling, while PHEVs provide the flexibility of both electric and conventional powertrains. FCEVs, though currently with limited market presence, are gaining attention for their potential in long-haul commercial applications due to their quick refueling capabilities and extended range.
Light Commercial Vehicles Market Geography Segment Analysis
Light Commercial Vehicles Market in Africa
The African light commercial vehicles market demonstrates unique characteristics shaped by diverse economic landscapes across the continent. South Africa stands as the region's most developed automotive market, benefiting from established manufacturing facilities and a robust dealer network. The continent's automotive sector is experiencing transformation driven by urbanization, infrastructure development, and growing demand for efficient transportation solutions. While most African nations have historically relied on imported vehicles, there is an emerging trend toward local assembly operations and an increased focus on after-sales services to support the growing vehicle parc.
Light Commercial Vehicles Market in Asia-Pacific
The Asia-Pacific light commercial vehicles market exhibits dynamic growth patterns influenced by rapid urbanization, expanding e-commerce sectors, and evolving logistics needs across diverse economies. The region's market is characterized by strong domestic manufacturing capabilities, particularly in countries like China, Japan, and India, alongside emerging production hubs in Southeast Asian nations. The shift toward electric mobility, supported by government initiatives and increasing environmental consciousness, is reshaping the market landscape across the region.
Light Commercial Vehicles Market in India
India emerges as the largest market in the Asia-Pacific region, commanding approximately 25% of the regional market share in 2024. The country's dominance is underpinned by its robust manufacturing ecosystem, extensive dealer networks, and growing demand from both urban and rural sectors. The market benefits from strong government support through initiatives like 'Make in India' and policies promoting electric vehicle adoption, particularly in the LCV segment.
Light Commercial Vehicles Market in Japan
Japan represents the fastest-growing market in the Asia-Pacific region, with a projected growth rate of approximately 7% from 2024 to 2029. The country's market expansion is driven by technological innovation, particularly in electric and hybrid vehicles, alongside strong demand from the e-commerce and logistics sectors. Japan's advanced infrastructure and supportive regulatory environment continue to facilitate market growth, while its manufacturers maintain leadership in developing innovative light commercial vehicle solutions.
Global Light Commercial Vehicle Market Overview
The global light commercial vehicle market is poised for significant growth, driven by technological advancements and increasing demand for efficient transportation solutions. This market encompasses a wide range of vehicles designed for commercial use, including vans, trucks, and other light-duty vehicles. As urbanization and e-commerce continue to expand, the demand for light commercial vehicles is expected to rise, with key markets such as North America and Europe leading the way.
Commercial Vehicle Market Trends
The commercial vehicle market is undergoing a transformation with the integration of advanced technologies and a shift towards sustainable practices. Electric and hybrid vehicles are gaining traction, supported by government incentives and a growing focus on reducing carbon emissions. This trend is particularly evident in developed regions, where infrastructure development and regulatory support are facilitating the adoption of cleaner vehicle technologies.
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Competitive Landscape
Top Companies in Light Commercial Vehicles Market
The light commercial vehicles market is characterized by intense competition and continuous innovation among major players. Companies are increasingly focusing on electric vehicle development, with many manufacturers launching new electric variants of their popular models while simultaneously improving conventional vehicle offerings. Strategic partnerships and collaborations have become crucial, particularly in developing charging infrastructure and sharing technological expertise. Operational agility is demonstrated through flexible manufacturing processes and adaptable supply chain management, allowing companies to respond quickly to market demands. Geographic expansion remains a key strategy, with companies establishing new manufacturing facilities and strengthening their presence in emerging markets. The industry also witnesses significant investment in research and development, particularly in areas such as autonomous driving capabilities, connected vehicle technologies, and sustainable manufacturing practices.
Global Leaders Dominate Fragmented Market Structure
The light commercial vehicles market exhibits a fragmented structure with a mix of global automotive giants and regional specialists. Major players like Ford, Volkswagen, and General Motors leverage their extensive manufacturing capabilities, established distribution networks, and strong brand recognition to maintain market leadership. Regional players, particularly in emerging markets like China and India, maintain significant local market share through their understanding of specific market needs and established dealer networks. The market also includes specialized electric vehicle manufacturers who are gaining prominence through innovative technology offerings and focused market strategies.
The industry has witnessed strategic consolidations through mergers, acquisitions, and joint ventures, particularly in emerging technologies and markets. Companies are forming strategic alliances to share development costs and technological expertise, especially in electric vehicle development and autonomous driving capabilities. These partnerships often cross traditional competitive boundaries, with automotive manufacturers collaborating with technology companies and startups. The market also sees vertical integration efforts, with manufacturers investing in battery production and charging infrastructure to secure their supply chains and enhance their competitive position.
Innovation and Sustainability Drive Future Success
For incumbent players to maintain and expand their market share, focus on technological innovation and sustainability will be crucial. Companies must invest in developing advanced electric powertrains, improving battery technology, and expanding charging infrastructure. Success will depend on balancing traditional vehicle offerings with new electric models while maintaining cost competitiveness. Building strong relationships with suppliers, particularly for critical components like semiconductors and batteries, will be essential. Companies must also focus on digitalizing their operations and enhancing their after-sales service networks to meet evolving customer expectations.
New entrants and challenger brands can gain ground by focusing on specific market segments or regions where they can build competitive advantages. Success factors include developing innovative business models, such as mobility-as-a-service offerings, and leveraging digital technologies for enhanced customer experience. Companies must navigate increasing regulatory pressures, particularly regarding emissions standards and safety requirements, while maintaining profitability. The risk of substitution from alternative transportation modes remains moderate, though this varies by region and use case. Building strong relationships with commercial fleet operators and understanding their specific needs will be crucial for long-term success in this commercial vehicle industry.
Light Commercial Vehicles Industry Leaders
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BAIC Motor Corporation Ltd.
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Dongfeng Motor Corporation
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Ford Motor Company
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General Motors Company
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Volkswagen AG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- August 2023: General Motors is expected to launch an all-electric Cadillac Escalade in late 2024.
- August 2023: General Motors doubled down on plans for an electric future in the Middle East.
- August 2023: Gabriel India Limited (Gabriel India), a flagship company of Anand Group, announced that during the quarter that ended on June 30, 2023, it developed components for Maruti Suzuki Jimny and Stellantis Electric Citroen C3. At present, it is developing parts for new models of VW, Tata, Stellantis, Mahindra, and Maruti Suzuki.
Global Light Commercial Vehicles Market Report Scope
Commercial Vehicles are covered as segments by Vehicle Type. Hybrid and Electric Vehicles, ICE are covered as segments by Propulsion Type. Africa, Asia-Pacific, Europe, Middle East, North America, South America are covered as segments by Region.
Vehicle Type
| Commercial Vehicles | Light Commercial Pick-up Trucks |
| Light Commercial Vans |
Propulsion Type
| Hybrid and Electric Vehicles | By Fuel Category | BEV |
| FCEV | ||
| HEV | ||
| PHEV | ||
| ICE | By Fuel Category | CNG |
| Diesel | ||
| Gasoline | ||
| LPG |
Region
| Africa | South Africa |
| Rest-of-Africa | |
| Asia-Pacific | Australia |
| China | |
| India | |
| Indonesia | |
| Japan | |
| Malaysia | |
| South Korea | |
| Thailand | |
| Rest-of-APAC | |
| Europe | Austria |
| Belgium | |
| Czech Republic | |
| Denmark | |
| Estonia | |
| France | |
| Germany | |
| Ireland | |
| Italy | |
| Latvia | |
| Lithuania | |
| Norway | |
| Poland | |
| Russia | |
| Spain | |
| Sweden | |
| UK | |
| Rest-of-Europe | |
| Middle East | Saudi Arabia |
| UAE | |
| Rest-of-Middle East | |
| North America | Canada |
| Mexico | |
| US | |
| Rest-of-North America | |
| South America | Argentina |
| Brazil | |
| Rest-of-South America |
| Vehicle Type | Commercial Vehicles | Light Commercial Pick-up Trucks | |
| Light Commercial Vans | |||
| Propulsion Type | Hybrid and Electric Vehicles | By Fuel Category | BEV |
| FCEV | |||
| HEV | |||
| PHEV | |||
| ICE | By Fuel Category | CNG | |
| Diesel | |||
| Gasoline | |||
| LPG | |||
| Region | Africa | South Africa | |
| Rest-of-Africa | |||
| Asia-Pacific | Australia | ||
| China | |||
| India | |||
| Indonesia | |||
| Japan | |||
| Malaysia | |||
| South Korea | |||
| Thailand | |||
| Rest-of-APAC | |||
| Europe | Austria | ||
| Belgium | |||
| Czech Republic | |||
| Denmark | |||
| Estonia | |||
| France | |||
| Germany | |||
| Ireland | |||
| Italy | |||
| Latvia | |||
| Lithuania | |||
| Norway | |||
| Poland | |||
| Russia | |||
| Spain | |||
| Sweden | |||
| UK | |||
| Rest-of-Europe | |||
| Middle East | Saudi Arabia | ||
| UAE | |||
| Rest-of-Middle East | |||
| North America | Canada | ||
| Mexico | |||
| US | |||
| Rest-of-North America | |||
| South America | Argentina | ||
| Brazil | |||
| Rest-of-South America | |||
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Market Definition
- Vehicle Type - The category covers light commercial vehicle.
- Vehicle Body Type - This includes Light Commercial Pick-up Trucks and Light Commercial Vans.
- Fuel Category - The category includes various fuel types such as Gasoline, Diesel, LPG (Liquefied Petroleum Gas), CNG (Compressed Natural Gas), HEV (Hybrid Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), BEV (Battery Electric Vehicles), and FCEV (Fuel Cell Electric Vehicles)
| Keyword | Definition |
|---|---|
| Electric Vehicle (EV) | A vehicle which uses one or more electric motors for propulsion. Includes cars, buses, and trucks. This term includes all-electric vehicles or battery electric vehicles and plug-in hybrid electric vehicles. |
| BEV | A BEV relies completely on a battery and a motor for propulsion. The battery in the vehicle must be charged by plugging it into an outlet or public charging station. BEVs do not have an ICE and hence are pollution-free. They have a low cost of operation and reduced engine noise as compared to conventional fuel engines. However, they have a shorter range and higher prices than their equivalent gasoline models. |
| PEV | A plug-in electric vehicle is an electric vehicle that can be externally charged and generally includes all-electric vehicles as well as plug-in hybrids. |
| Plug-in Hybrid EV | A vehicle that can be powered either by an ICE or an electric motor. In contrast to normal hybrid EVs, they can be charged externally. |
| Internal combustion engine | An engine in which the burning of fuels occurs in a confined space called a combustion chamber. Usually run with gasoline/petrol or diesel. |
| Hybrid EV | A vehicle powered by an ICE in combination with one or more electric motors that use energy stored in batteries. These are continually recharged with power from the ICE and regenerative braking. |
| Commercial Vehicles | Commercial vehicles are motorized road vehicles designed for transporting people or goods. The category includes light commercial vehicles (LCVs) and medium and heavy-duty vehicles (M&HCV). |
| Passenger Vehicles | Passenger cars are electric motor– or engine-driven vehicles with at least four wheels. These vehicles are used for the transport of passengers and comprise no more than eight seats in addition to the driver’s seat. |
| Light Commercial Vehicles | Commercial vehicles that weigh less than 6,000 lb (Class 1) and in the range of 6,001–10,000 lb (Class 2) are covered under this category. |
| M&HDT | Commercial vehicles that weigh in the range of 10,001–14,000 lb (Class 3), 14,001–16,000 lb (Class 4), 16,001–19,500 lb (Class 5), 19,501–26,000 lb (Class 6), 26,001–33,000 lb (Class 7) and above 33,001 lb (Class 8) are covered under this category. |
| Bus | A mode of transportation that typically refers to a large vehicle designed to carry passengers over long distances. This includes transit bus, school bus, shuttle bus, and trolleybuses. |
| Diesel | It includes vehicles that use diesel as their primary fuel. A diesel engine vehicle have a compression-ignited injection system rather than the spark-ignited system used by most gasoline vehicles. In such vehicles, fuel is injected into the combustion chamber and ignited by the high temperature achieved when gas is greatly compressed. |
| Gasoline | It includes vehicles that use gas/petrol as their primary fuel. A gasoline car typically uses a spark-ignited internal combustion engine. In such vehicles, fuel is injected into either the intake manifold or the combustion chamber, where it is combined with air, and the air/fuel mixture is ignited by the spark from a spark plug. |
| LPG | It includes vehicles that use LPG as their primary fuel. Both dedicated and bi-fuel LPG vehicles are considered under the scope of the study. |
| CNG | It includes vehicles that use CNG as their primary fuel. These are vehicles that operate like gasoline-powered vehicles with spark-ignited internal combustion engines. |
| HEV | All the electric vehicles that use batteries and an internal combustion engine (ICE) as their primary source for propulsion are considered under this category. HEVs generally use a diesel-electric powertrain and are also known as hybrid diesel-electric vehicles. An HEV converts the vehicle momentum (kinetic energy) into electricity that recharges the battery when the vehicle slows down or stops. The battery of HEV cannot be charged using plug-in devices. |
| PHEV | PHEVs are powered by a battery as well as an ICE. The battery can be charged through either regenerative breaking using the ICE or by plugging into some external charging source. PHEVs have a better range than BEVs but are comparatively less eco-friendly. |
| Hatchback | These are compact-sized cars with a hatch-type door provided at the rear end. |
| Sedan | These are usually two- or four-door passenger cars, with a separate area provided at the rear end for luggage. |
| SUV | Popularly known as SUVs, these cars come with four-wheel drive, and usually have high ground clearance. These cars can also be used as off-road vehicles. |
| MPV | These are multi-purpose vehicles (also called minivans) designed to carry a larger number of passengers. They carry between five and seven people and have room for luggage too. They are usually taller than the average family saloon car, to provide greater headroom and ease of access, and they are usually front-wheel drive. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all its reports.
- Step-1: Identify Key Variables: To build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built based on these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. Market revenue is calculated by multiplying the sales volume with their respective average selling price (ASP). While estimating ASP factors like average inflation, market demand shift, manufacturing cost, technological advancement, and varying consumer preference, among others have been taken into account.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.
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