The document discusses truck carriers in India and their performance. It notes that there are three market segments for trucks - low-cost, modern domestic, and premium. The trucking industry is experiencing rising demand due to growth in construction and road infrastructure. Trucks are the main form of freight transportation in India, carrying 65% of freight. However, there are challenges like poor road quality and congestion. The document then covers factors affecting truck carriers and compares different modes of transportation.
3. Three distinct market segments
• The low-cost segment
- technically simple and cheap trucks.
• The modern domestic segment
- further developed
- extremely favorably-priced trucks.
• The premium segment
- Technically high-quality and high-value trucks
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European, North American and Japanese OEMs.
6. Rising demand ???
• Construction sector experiencing
h Rapid growth
• Substantial improvement in
Road network
7.
8. Performance of truck carriers
Roads are the main form of transportation and they
carry 65% of India’s freight.
Trucking is the number one form of freight
transportation in India.
Trucks have the widest reach in freight
transportation and can deliver goods to even the most
rural and hilly areas of India
Challenges in the Indian scenario.
Poor quality and increasing congestion.
9. Comparative Cost Analysis
Fixed Variable Traffic
costs costs composition
Rail high low Bulk food, mining,
heavy mfg
Motor low medium Consumer goods,
medium/light mfg
Water medium low Bulk food, mining,
chemicals
Air High high High-value goods,
rush shipments
Pipe High low Petroleum, chemicals,
mineral slurry
10. FACTORS AFFECTING TRUCK CARRIERS
• Economies of scale in truck size, which favour
the use of larger trucks.
• Back-haul possibilities, which depend strongly
on the demand pattern.
• Empty running and idle time due to seasonal
variations in demand,
• Restrictions on working hours.
Example due to regulations or safety reasons.
• Road conditions such as mountainous
terrain, deteriorated pavement and traffic
congestion.
16. ADVANTAGES
1. Item Protection
2. Cost Savings
3. Easier to Track
4. Cost effective
5. Reliable and simple to setup
6. High flexibility in terms of transport jobs &
changed plans.
7. Fewer idles and waiting periods.
17. 8. Door-to-door delivery
9. Quicker Delivery Time
10. Relatively low transport times for short and medium distances.
11. Fast and convenient
12. Ability to use different routes and delivery schemes
13. High safety of the cargo
14. Great opportunity to select the most suitable carrier
19. Restrictions on transport of
hazardous goods.
Lack of environmental
cleanliness.
Trucks are not fuel efficient.
Editor's Notes
The Indian truck market grew at the decidedly impressive rate of 24% per annum between 2002 and 2008, reaching 4,20,000 vehicles by the end of 2008In 2009, the truck market has also been hit by thefinancial crisis.