Global Truck Companies Iveco and American Paccar Eyeing Entry into India

www.chinatrucks.com: Global truck makers are targeting India's commercial vehicle segment with Fiat Group's Iveco and American Paccar looking to enter the country to tap the potential of the world's third-largest truck and bus market. Paccar, headquartered in Bellevue, Washington, already has a component sourcing and developing technology centre at Pune for its global operations, set up three years ago in partnership with local technology solutions company KPIT Cummins Infosystems.

It had also participated in the 11th Auto Expo in Delhi and showcased its premium trucks. According to two persons with knowledge of the development, the American truck maker has undertaken a feasibility study for the Indian market for its potential brands. Globally, Paccar designs, manufactures and markets light, medium and heavy-duty trucks under the Kenworth, Peterbilt and DAF brands.

The Nasdaq-listed $20 billion company also makes automotive engines under the Leyland brand. The same brand is also owned by the Hinduja Group that owns Ashok Leyland and sells its trucks, buses and light vehicles under the same brand in the Indian market.

The Indian market has witnessed a spate of entries into the commercial vehicle segment. In the past few years, global giants like Volvo, Daimler, Scania, Navistar and Beiqi Foton have entered the Indian market and are competing with locally entrenched players like Tata Motors and Ashok Leyland. According to analysts covering the automotive industry, the underlying potential of the huge Indian market has made many global players vying for a share of it.

"In terms of the CV industry, India is all set to experience a perfect competition kind of situation going forward (and) the current duopolistic structure gets dislodged due to increasing choices in the market," said Amit Kaushik, principal analyst, autos, at global consultancy IHS Automotive.

Another player eager to set up shop in India is Iveco, a member of the Fiat Industrial Group that has also started feasibility studies for limited-scale local operations to increase its global presence in important emerging markets. The passenger car division of the Italian auto major is already present in India. Iveco is in the process of evaluating the market for independent entry, a person close to development said.

"Three years back they tried to explore a possibility with (local vehicle maker) AMW to partnering strategically, but ended up with an understanding for exporting wheel rims for their European demand. Now they are looking at staggered operations in India and to gain substantial operations as the market grows."

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