Brief Summary_ND32_18

Strategic Analysis of the Global City Truck Market City Truck Sales to Account for 59% of Global Light Commercial Vehicle (LCV)

Market by 2020

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September 2014

BRIEF SUMMARY OF KEY FINDINGS

FULL STUDY AVAILABLE AT

www.frost.com

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Contents

Section Slide

Number

Executive Summary 4

Research Scope, Objectives, Background and Methodology 20

Definitions and Segmentation 27

City Trucks —A Need for Urban Logistics 31

Market Forecasts—Global & Regional Analysis 38

Market Share Analysis of Key 5 Regions 42

Current and Future City Truck Attributes—A Comparative Analysis 52

Current and Future City Truck Attributes—Technology 64

Global City Trucks Platforms—Comparative Analysis by Region 76

Vision of City Trucks in 2020 88

Comparative Analysis of Global City Truck OEMs by Platforms and Models 96

Key Conclusions & Recommendations 102

Appendix 106

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Executive Summary

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Global

• City trucks are a new class of ultra-light trucks that broadly includes panel vans, box

vans, and drop-side trucks that have a gross vehicle weight rating (GVWR) of less than

or equal to 3.5 tons (T).

• By 2020, city trucks are expected to constitute about 59% (i.e., 3.7 million units) of the

total LCV sales, at a sales compounded annual growth rate (CAGR) of 6.4%.

Regional

• Among the TRIAD markets, Western Europe is expected to remain the biggest market for

city trucks, growing at a CAGR of 5.5% to reach a 0.5 million annual sales mark by 2020.

• By 2020, annual sales in China are expected to surpass 2 million, accounting for every

second city truck sold globally, making it the largest city truck market.

OEM

• Currently, TRIAD OEMs account for about 27% of total city trucks sold globally. Ford,

Fiat, PSA, and Nissan look poised to marginally improve market share by 2020.

• Chinese and Indian OEMs are expected to account for about 61% of the global city truck

market by 2020. South Korean OEMs are expected to perform strongly in exports.

Fuel Type

• With almost 49% market share, diesel is expected to become the most preferred fuel for

city trucks by 2020, resulting in the end of dominance for gasoline/petrol.

• Natural gas (NG), ethanol, and biofuel are expected to experience high adoption rates

and are forecasted to account for 18% of city truck sales by 2020.

Electric

City

(eCity)

Trucks

• By 2020, all major TRIAD OEMs and a few Asian OEMs are expected to launch at least

one eCity truck. This is expected to help eCity truck sales reach 160,000 by 2020.

• China, Japan and South Korea, and Western Europe are likely to be the largest markets

for eCity trucks with over 80% of global sales from these countries.

Key Findings

City Truck Market: Key Takeaways, Global, 2013–2020

TRIAD = Western Europe, the US, and Japan; OEM = original equipment manufacture Source: Frost & Sullivan

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Future Technologies Shaping the City Truck Market

Powertrain

TRIAD Emerging Markets

All OEMs are expected to offer at least one eCity truck and at least one CNG engine or ethanol option for each city truck model. Downsizing of engines is expected to continue as a secular trend in this market.

A majority of OEMs in emerging markets will offer CNG powered city trucks. Key countries in BRICS and ASEAN are expected to promote eCity trucks in major cities as a pilot measure.

Safety

While driver and passenger airbags, ABS, and ESC have become standard features, new features such as EBD, LDW, TPMS, hill-climb assist, and collision mitigation are expected to become mainstream by 2020.

Emerging markets are expected to gradually adopt active safety systems influenced by regulations. Driver and passenger air-bags, ABS, and ESC are expected to become basic features in the city trucks of emerging regions.

Drivability

The TRIAD region is expected to lead the way in driver-friendly features. Automatic transmission (AT)/semi-AT, power steering, tilt-steering column, multi-function steering wheel, cruise control, and parking assist will be key features.

To make city trucks more affordable, driver-friendly features will be adopted at a slow rate. Semi-AT, power steering, and tilt-steering columns are some of the features that can become standard.

Telematics

More than 75% of new city trucks are expected to have fleet tracking, idle reporting, preventive maintenance, safety report, and turn-by-turn navigation telematics provided as built-in features.

Emerging regions are expected to experience the first phase of telematics adoption during the study period. Navigation, traffic-based route selection, and fleet tracking will be widely adopted features in emerging regions.

CNG: compressed natural gas; EBD: electronic brakeforce distribution; LDW: lane departure warning; TPMS: tyre pressure monitoring system; ABS: antilock braking system;

ESC: electronic stability control; BRICS: Brazil, Russia, India, China, South Africa; ASEAN: The Association of Southeast Asian Nations. Source: Frost & Sullivan

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Urbanization and Impact on the City Truck Market Mega cities are key markets for city trucks, with over 70% of city truck sales expected from urban and

suburban areas after 2020.

Implications for the Global City

Truck Market

Powertrain Implications

Smart Mobility

Urban Population of Top 10 Countries, Global, 2025

BRICS is expected to account for 38% of the total global urban population by 2025; the

urban populations in India and China are expected to be greater than 1 billion by 2025.

Demanding urban environment in both

developed and developing markets expected

to warrant small, nimble, and easily

maneuverable city trucks with advanced

safety features

Demand for fully electric and also CNG

powered city trucks, and also trucks with

down sized engines expected to increase

driven by regulations and total cost of

ownership (TCO) reduction considerations

Proliferation of telematics and allied solutions

expected to become a major trend as fleets

embrace FMS, MRM, and other connectivity

technologies to serve customers at optimized

cost

Product Design

Note: All values are in millions. Developed regions include Europe, North America, Australia/New Zealand, and Japan, and developing regions include all regions of Africa,

Asia (excluding Japan), Latin America, the Caribbean, Melanesia, Micronesia, and Polynesia. Countries with an urban population greater than 40 million in 2025 have been

considered. Source: “World Urbanization Prospects,” The 2011 Revision, Department of Economic and Social Affairs of the United Nations, 2011; Frost & Sullivan

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The spokes: Drop off delivery points for

double trailer trucks

Heavy commercial

vehicles (double trailer

trucks) expected to carry

goods to big warehouses in city

outskirts

The hub: Central distribution centers

City trucks to

deliver goods to

warehouses within

city

Outer ring road

25 miles from city center

Illustration of Global Urban Distribution in 2020

Evolution of the Hub and Spoke Model and Impact on the City Truck

Market

HCV = heavy commercial vehicle Source: Frost & Sullivan

Why hub and spoke?

• Need to keep the retailers stocked

around the clock to avoid missed

opportunities

• Increasing eRetailing to demand

time specific on-door delivery

• Entry restrictions for HCVs and low

emission zones in cities

City trucks: serving the spokes

• Compact size allowing city trucks to

easily maneuver city traffic

• Excellent platform for electrification

suitable for low/zero emission zones

City trucks: business sense

• Most trucks able to operate at 80-

100% capacity (load factor)

• ~50% reduction in trucks going in

and out of cities

• Ensures ‘on-time delivery’ for

retailers and end customers

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Narrow and Congested City

Roads

• Average speed: 20-60 km/h

• Tight turning radius

• Frequent/improper gear shifting

• Frequent braking & clutch use Stringent Emission Norms

• Efficient/downsized engine

• Subsidies for electric/hybrid vehicles

• Light weight frame

• Automatic engine shut-down/start-up

Strict Safety Regulations

• Shorter braking distance

• Accident prevention system

• Driver information and warning

systems

• Regulation compliance system

Entry Restriction

• Permits for HCVs into cities—hourly basis

• HCV use in night hours

Improve Logistical Efficiency

• Connecting the last mile in hub &

spoke model

• Vehicle tracking & connectivity

• Driver/vehicle performance

monitoring system

City Trucks in 2020: Impact of Urban Logistics The emergence of urban logistics and new practices such as same-day delivery in urban areas regulated by

strengthening emission and safety regulations influence the design tenets of city trucks.

City Truck Market: Impact of Urban Logistics, Global, 2020

Meeting Customer

Requirements

• Increase in on-line shopping

• Delivery at doorstep

• Varied delivery conditions

o e.g., temperature

Source: Frost & Sullivan

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Powertrain Strategy of Global OEMs 2013 Thirty-nine major OEMs are currently offering city trucks, and more than 75 different product platforms are

available globally. OEMs with European presence provide the widest powertrain options.

North America

Japan &

Korea

China

India

Diesel Gasoline/Petrol NG/Bi-fuel/Flex-fuel

Reg

ion

Powertrain

Note: Non exhaustive list of automotive OEMs

Pure EV/ Hybrid

Daihatsu

Mazda

Ashok

Leyland

Mazda

Europe

GAZ

Citroen Peugeot

Mercedes

GAZ

Citroen Peugeot

Mercedes

GAZ

Citroen Peugeot

Mercedes

Foton Donfeng Hafei

CAKY Wuling FAW

Citroen

City Truck Market: Powertrain Strategy, Global, 2013

Foton Donfeng

CAKY Wuling

EV= electric vehicle Source: Frost & Sullivan

http://www.peugeot.co.uk/



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Executive Summary—Growth and Development of City Truck Market Rising urban logistics will enable sub- 3.5 T GVWR city truck sales to grow faster at a CAGR of 6.5% between

2014 and 2020. North America, LATAM, India, and Eastern Europe will emerge as major growth markets.

LATAM = Latin America; APAC = Asia-Pacific; ROW = Rest of World Note: All figures are rounded. The base year is 2013.


City Truck Market: Growth and Development of City Truck Market, Global, 2013 and 2020

2013

GVWR < 3.51T

56.5%

~ 2.4 M

GVWR 3.51T to 6 T

43.5%

~ 1.8 M

~ 4.2 Million

0

500

1,000

1,500

2,000

2,500

WesternEurope

NorthAmerica

China India LATAMEasternEurope

APAC ROW

GVWR 3.5T to 6T 227.3 176.9 979.9 29.4 52.5 219.3 133.6 13.5

GVWR < 3.5T 351.3 47.5 1,274 194.0 84.2 149.1 257.5 22.4

Un

its (

‘000)

2013

CAGR (2013–2020) = 5.9%

2020

GVWR 3.51T to 6 T

41.1%

~ 2.6 M

GVWR < 3.51T

58.9%

~ 3.7 M

~ 6.3 Million

60.7%

39.3%

21.2%

78. 8%

56.5%

43.5%

86.8%

13.2%

61.6%

38.4% 40.5%

59.5%

65.8%

34.2%

62.4%

37.6%

~ 578.6

~ 2,254.3

~ 224.4 ~ 223.4

~ 136.7

~ 368.4 ~ 391.1 ~ 35.9

City Truck Market

43.5%

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Executive Summary—Regional Market Differentiation While developed economies adopt green powertrain, advanced safety systems, and modern driver comfort

features, emerging economies are embracing low cost, utility-based, low maintenance trucks.

City Truck Market: Regional Market Differentiation, Global, 2014

Market Price Fuel

Type

Engine

Capacity

Driver-

train Transmission Steering Safety

Cargo

Area

Turning

radius

India Low 2 0.4 - 1.5L RWD 4-6 speed

manual

Rack &

Pinion

Driver seat

belt

Drop side,

box van 3.5-5.1m

China Low 3 0.8 - 2.7L RWD 4-6 speed

manual

Rack &

Pinion

Driver seat

belt,

Drop side,

box van 3.5-5.5m

North

America High 5 1.6 - 3L FWD

CVT/ 4-6 speed

AT Power

ABS, ESC,

EBD, EBA,

LDW, BSD

Panel van,

box van,

drop side

5.5-7m

Europe High 5 1 - 3L FWD

5-6 speed

manual / 5-7

speed AT /

5-7 speed semi-

at

Power

ABS, EBD,

EBA, ESC,

Hill assist,

BSD, LDW

Panel van,

box van,

drop side

4.5-5.5m

APAC Medium 4 0.6 - 2.9L FWD /

4WD

4-6 speed

manual / 3-6

speed AT

Power Driver seat

belt, ABS,

Panel van,

drop side 3.6-5.5m

LATAM Medium

-high 3 0.8 - 3L FWD

5-6 speed

manual Power

Driver seat

belt, ABS,

ESC

Panel van,

box van,

drop side

3.5-5.5m

RWD = rear wheel drive; FWD = front wheel drive; 4WD = four wheel drive Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan

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Executive Summary—OEMs City Truck Strategies Going global is the expected focal point for OEMs across the world. While TRIAD OEMs are expected to look to

expand in the emerging regions, OEMs from emerging regions will look to tap into other emerging markets.


City Truck Market: OEMs Differentiation of Their Future City Trucks, Global, 2013

ROW markets are expected to see

strong competition between Korean and

Japanese OEMs. With the introduction of

next generation of value for money

Chinese and Indian city trucks, the

market dynamic is set to undergo

noticeable change. Oceanic countries are

expected to remain dominated by

European OEMs.

Chinese OEMs are expected to

introduce the next generation of

city trucks loaded with larger fuel

efficient engines, rudimentary

cabins, and safety features at

attractive price points. Cracking

low cost export markets is

expected as the ticket to go

global. LATAM, lacking domestically grown OEMs, is expected

to require a 2-pronged strategy. While Brazil and Mexico

are expected to be advanced markets, economically

backward countries are expected to become vital

markets to tap for Chinese and Korean OEMs.

Indian OEMs are expected

to continue to adopt a low

margin, high volume strategy,

and to expand presence in

Africa and the ASEAN

corridor. Cabin comfort,

active and passive safety,

and powertrain efficiency are

expected focal points.

TRIAD OEMs are expected to excel in introducing

sophisticated technologies to improve TCO,

driver-friendly features, and cargo safety in both

developed and emerging markets. Achieving quick

return on investment (ROI) by adopting limited

product platforms globally is expected to be a key

focal point.

North

America Europe

Japan

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Executive Summary—Key Design Tenets of City Trucks City trucks are expected to demand car-like drivability, assisted by fuel efficient engines and advanced safety

features with performance, effectiveness, and efficiencies enhanced by telematics technologies.

City Truck Market: Key Design Tenets of City Truck Vehicle, Global, 2013


Increased freight

efficiency

Downsized engine

with advanced

transmission

Short

turning

radius

Alternate/

green

powertrain

Intelligent

active safety

systems

Advanced

passive

safety design

City

Truck • Purpose built

• Affordable

Telematics

services

Non-exclusive

parts for interiors

Intelligent

suspension

Small

Cargo

Limited

City

Speed

Compact

Body

Easy

Loading/

Unloading

Fuel

Efficiency

Easy

Driving

Cargo

Safety

Fleet

Efficiency

Driver

Safety

Key Design Tenets Common Attributes

Easy

Maintenance

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Technology Focus of OEMs TRIAD OEMs are showing most interest in electrification, safety, and electronics, driven by largely by TCO and

regulatory considerations; Emerging market OEMs value powertrain efficiency improvement technologies.

Electrification

Hybridization

CNG / flex fuel

Powertrain downsizing

Safety systems

Chassis & suspension

Interior & driver comfort

Cargo platform / box / cube

Electronics & software

1 2 3 4 5

TRIAD Markets Emerging Markets

Strong Trend Towards 2020 Moderate Trend Towards 2020 Trend 2013 Trend 2020

City Truck Market: Comparison of Technology Focus between OEMs of TRIAD and Emerging

Markets, Global, 2013-2020


1 2 3 4 5 Low High Low High

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Executive Summary—2020 Virtual City Truck: Global Global city trucks are poised to embrace downsized engines, advanced suspension, intelligent safety systems,

efficient transmission, connectivity, and driver-friendly features with a higher average payload of 1.8T.

Loading Length

1,300–3,150 mm

Floor Width

1,400–2,000 mm

Height/Side Panel

250–1,900 mm

Cargo Volume

2.3– 7.5 cu.M Wheel Base

1,900–4,000 mm

Petrol Diesel NG

Engine

Volume 0.5 – 3L 0.4 – 3L 0.7 – 3L

No. of

Cylinders 1 - 6 1 – 6 2 – 6

Power (bhp) 15 – 140 10 – 200 25 – 160

Torque (Nm) 25 – 250 20 – 500 40 – 350

Turning Radius

3.6-5.5m

Manual AT Semi-AT

Speed 4 – 6 3 – 7 5 – 7

FWD RWD 4WD

Drivetrain

Safety Systems

ABS,ESC, EBD, LDW,

TPMS, hill-start assist,

collision mitigation,

curtain air-bags

Touch-screen

• Navigation

• Media player

• Reverse camera

Telematics Services

• Fleet tracking

• Idle reporting

• Preventive maintenance

• Safety report

• 4G connectivity

Steering Control

• Power steering

• Multi-function steering wheel

• Tilt-enabled telescopic steering

Suspension Braking Body Type

Chassis cab + box

conversions

Drop side / tipper

Panel van with bulk head

(full steel / window / grille)

Voice Enabled Services

• Turn-by-turn navigation

• Traffic-based route-suggestion

• Phone-call, SMS reading

Auto start & stop function

automatic / manual climate control

Cabin Comfort & Safety

Front McPherson strut /

Wishbone/ Anti-roll bar

Ventilated Disc

/ ABS / EBD

Rear Torsion beam / Multi-link

Leaf spring / Hydraulic / Air

Disc / ABS /

EBD

GVWR

1,000–3,500 kg

Pay Load

350–1,850 kg

City Truck Market: Virtual City Truck, Global, 2020


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Executive Summary—City Truck Impact on OEMs and Suppliers Growth of the city truck market is expected to benefit all stake holders in the value chain. While OEMs can take

their products globally, suppliers will find opportunities in aftermarket services (e.g., telematics, retrofitment).


City Truck Market: City Truck Impact on OEMs and Suppliers, Global, 2013

• City trucks are offering attractive margins for OEMs, with many global OEMs enjoying

profit margins that are even higher than luxury cars.

• However, OEMs from APAC, especially the Chinese, Indian, and Korean OEMs, are

expected to continue with the small margin, high volume strategy.

• Urbanization is expected to propel high growth, making city trucks a major revenue

contributor.

• Unlike passenger cars, city trucks sell on value for utility. Hence, city trucks do not

demand brand exclusivity, making sharing platforms with cars and OEMs easier.

• Common platforms also help reduce product development lead-time and reap the

benefits of volume of scale, contributing towards healthy profit contribution.

• Telematics and allied services are expected to offer sizeable opportunities for

suppliers.

• Truck cargo box modification and retrofitment are expected to create a sizeable

aftermarket ecosystem.

• Volume spurt for parts common between cars and city trucks is expected to benefit

suppliers, enabling higher utilization of man, machine, and materials.

Impact

on

OEMs

Impact

on

Suppliers

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Key Conclusions and Future Outlook

So What ?

Global City Truck Market: Key Conclusions and Future Outlook, Global, 2013–2020


Global city truck market will grow at a 6.4% CAGR.

Emerging economies are expected to account for

about 73% by 2020.

So What?

Powertrains that reduce operation costs are expected to be most sought. Offering at least one NG powertrain option for each product platform and one eCity truck product will prepare OEMs to stay competitive and sustainable in the long run.

OEMs are expected to consider aftermarket friendliness at the design stage as customers are expected to look for customizable cargo areas. Retrofitments such as refrigeration, box conversions, and racks are expected to emerge as sizable aftermarket opportunities.

OEMs are expected to increase their global footprint. While TRIAD OEMs will exploit emerging regions in Eastern Europe and LATAM, OEMs of emerging regions can look at ASEAN, Africa, Middle East, and other LATAM countries.

Box vans and panel vans are likely to account for

55.6% of global city truck sales by 2020.

eCity trucks and NG-powered city trucks are

forecasted to account for 22.5% by 2020.

Evolution of city trucks implies that OEMs need to accommodate future city trucks while designing SUV and passenger carrier platforms, leading to shortened product development lead time and significant savings in investment.

About 100 different city truck products are expected to

be offered by 2020.

Telematics-based services are expected to pit truck OEMs against third-party suppliers. While OEMs have an edge in vehicle performance, safety, and preventive maintenance solutions, suppliers are expected to be highly competitive in navigation assistance, fleet management, and other operational services.

While most city trucks in TRIAD are expected to

feature telematics devices, those in emerging

regions are expected to have plug-and-play

architecture.

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Research Scope, Objectives, Background, and Methodology

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Research Scope

City Truck Up to 3.5T GVWR Vehicle Type

2014–2020 Forecast Period

2013–2020 Study Period

2013 Base Year

Global

• TRIAD Regions

o North America consists of United States and Canada

o Europe consists of Western Europe and Central Europe

o Japan

• Emerging Regions

o China

o India

o Eastern Europe

o Latin America (LATAM) (including Mexico)

o Asia-Pacific (APAC) (excluding China and India)

o Rest of World (ROW) consists of Africa and the Middle East

Geographical Scope


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Aim

• This research aims to understand the global city truck market, explore current market dynamics, and

forecast future market growth.

• It examines the evolution of city trucks, identifies key parameters that define current and future city truck

vehicles, and analyzes the evolution and penetration of technologies entering the city truck models.

• The research aims to provide various top-level and deep dive comparative analyses by slicing and

dicing the market, participants, models, and regional strategies.

Objectives

• To provide strategic overview of key Mega Trends and market engineering metrics

• To provide market drivers, restraints, and opportunities

• To provide insight on key urbanization trends influencing the city tuck design and development

• To provide insight on emission and fuel efficiency regulations shaping the city trucks in key regions

• To provide a comparative analysis of product offerings and strategies of key global OEMs

• To develop an actionable set of recommendations for market entry and growth

Research Aims and Objectives


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Key Questions This Study Will Answer

What are the key market and technology trends influencing the city truck market? What are the

target markets for city truck OEMs?

What are the competitive landscape and dynamics influencing growth and development of this

market? What are the OEMs’ current market shares and how are they expected to grow?

What are the technology strategies of OEMs in the city truck market? What impact will technology

trends such as connectivity have on market participants and models?

What are the key characteristics of city trucks? How will city trucks be defined in the future?

City Truck Market: Key Questions This Study Will Answer, Global, 2013

What are the business environment and dynamics of the global city truck market? Who are the

participants in this space and how is this market evolving?


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Research Background

This research service is a short summary capturing content from recently published and ongoing research in

the areas of global commercial vehicle powertrain, chassis, safety, telematics, and regulation compliance

technologies and markets including the following:

• NA53: Strategic Analysis of Global Platforms of Major Heavy-duty Truck Manufacturers—Completed

• M91C: Strategic Assessment of Truck Cabin Styling Strategies of Major HCV OEMs in Western

Europe—Completed

• N8CF: Strategic Analysis of Classes 6–8 Natural Gas Truck Market in North America—Completed

• N998: Strategic Analysis of Brazilian Commercial Truck Market—Completed

• NA66: Strategic Analysis of Chinese Commercial Truck Market—Completed

• NAAF: Strategic Analysis of Powertrain Downsizing Strategies of Major Heavy-duty Truck

Manufacturers in North America and Western Europe—Completed

• P6DD: Strategic Analysis of Indonesian Commercial Vehicle Market—Completed

• M905: Strategic Analysis of Turkish Commercial Vehicle Market—Completed

• NB77: Strategic Outlook of Hybridization Trends in Select Off-Highway Commercial Vehicle Markets

—Completed

• N838: Strategic Analysis of North American CV Telematics Market—Completed

This study is also supplemented by our ongoing interactions with vehicle manufacturers and

suppliers of alternative powertrain technologies, among other truck technologies.


23 ND32-18

Research Methodology: Frost & Sullivan’s research services are based on secondary and primary

research data.

Secondary Research: Extraction of information from existing reports and project material within the Frost

& Sullivan database includes data and information gathered from technical papers, specialized magazines,

seminars, and Internet research.

Primary Research: More than 15 interviews have been conducted over the phone by senior

consultants/industry analysts with original equipment suppliers, regulation authorities, and distributors.

Primary research has accounted for 80.0% of the total research.

Note on Images: The images of vehicles on slides 78–87 are used with permission from respective

OEMs.

Research Methodology


24 ND32-18

Key Industry Participants Compared in This Study

Europe

&

North America

India

&

China

Japan

&

Korea

Fiat Tata Motors Hyundai Motors

Ford Ashok Leyland Kia Motors

IVECO Mahindra Mitsubishi Motors

PSA - Peugeot Citroen Wuling Motors Toyota

Renault-Nissan JAC Daihatsu

Vauxhall Changan – CAKY & Hafei Mazda

GMC - Chevrolet Donfeng Automobile Suzuki

Chrysler - RAM Chery Automobile Honda

GAZ Beiqi Foton Isuzu

FAW

City Truck Market: Key Industry Participants, Global, 2013


25 ND32-18 25 ND32-18

Definitions and Segmentation

26 ND32-18

Reference Vehicle

Classification Definition GVWR Typical Applications

Micro LCV City truck

City trucks represent ultra-light

trucks that include panel vans

and dump trucks.

Class 12

GVWR < 3.5T

Intra-city pick-up and delivery

facilitating small time businesses

that often do not run on full-load

conditions

LCV Large city vehicles LCVs represent vans and light

trucks.

Class 23

GVWR > 3.5T & <

6T

Pick-up and delivery, utilities,

airport operations, facilities

management, and several other

vocational applications

MCV Medium commercial

vehicles

MCVs represent all types of

mid-size trucks, vans, and

buses.

Class 46

GVWR >6T &

<=16T

Home delivery, logistics, parcel

delivery, utilities, waste and

recycle collection, airport

operations, and small and

medium school and transit buses,

among others

HCV Heavy commercial

vehicles

This constitutes all types of

large trucks.

Class 7 and 8

GVWR >16T

Line haul freight trucks, refuse

trucks, mining and construction

trucks, and other types of

vocations that demand high

GVWR trucks

City Truck Definition and Vehicle Segmentation What are city trucks, how are they defined, and how do they compare to LCVs?

City Truck Market: City Truck Definition and Segmentation, Global, 2013

Segment with over-lap of features and specifications Source: Frost & Sullivan

27 ND32-18

Market Segmentation The focus of this research is on two major segments of city trucks, namely, vans and trucks that are up to

3.5T GVWR. Pickup trucks are not included in the city truck segment.

Vans Trucks

Panel vans Drop-side

City Trucks

Total City Truck Market

Major Market Classification

Target Market

Market not in Focus

City Truck Market: Market Segmentation, Global, 2013

Double / combi cab Chassis cab Tipper Pickups

Box vans Curtain-side Refrigerated truck


28 ND32-18

Definition of City Truck Categories City trucks fall under the micro-truck, medium light truck, micro van, and light van categories.

Category Cargo Area

Type

Avg. Top

Speed

No. of

Cylinders

Engine

Capacity

Avg.

Power

GVWR

Rating Up

to

Cargo

Volume/

Area

Examples

Micro truck

Drop side 31m/h

(50 km/h) 1 610 cc 11 bhp 1.3 T 2.4 sq.m

Tata Ace Zip /

Mitsubishi

Minicab

Drop side 44m/h

(70 km/h) 2 910 cc 26 bhp 1.8 T 3.5 sq.m

Mahindra

Maxximo

Medium light

truck Drop side

62m/h

(100 km/h) 3 1,400 cc 55 bhp 2.5 T 4.1 sq.m

AL Dost /

Wuling

Micro van Panel van 81m/h

(130 km/h) 3 1,000 cc 98 bhp 2 - 2.4T 2.9 cu.m

Ford Transit

Connect

Light van

Panel van 90m/h

(145 km/h) 4 1,560 cc 126 bhp 2.6 - 3T 5.8 cu.m

Citroen

Dispatch

Panel van 100m/h

(160 km/h) 4 2,200 cc 150 bhp 2.8 - 3.5T 8 cu.m

Renault

Master

Large city

truck Panel van

109m/h

(170 km/h) 4 - 6 2,990 cc 190 bhp 4.5 - 7T 15 cu.m Iveco Daily

City Truck Market: Definition of City Truck Categories, Global, 2013


29 ND32-18

Related Research 2013 Related Published Research


Report

Code Research Topic Timeline

ND7A 2014 Outlook of the Global Commercial Vehicle Industry Completed

NA53 Strategic Analysis of Global Platforms of Major Heavy-duty Truck Manufacturers Completed

M91C Strategic Assessment of Truck Cabin Styling Strategies of Major HCV OEMs in Western Europe Completed

N8CF Strategic Analysis of Classes 6–8 Natural Gas Truck Market in North America Completed

NAAF Strategic Analysis of Powertrain Downsizing Strategies of Major Heavy-duty Truck Manufacturers

in North America and Western Europe Completed

NA66 Strategic Analysis of Chinese Commercial Truck Market Completed

M905 Strategic Analysis of Turkish Commercial Vehicle Market Completed

N838 Strategic Analysis of North American CV Telematics Market Completed

Note: Titles and number of titles are subject to change and are not guaranteed. Frost & Sullivan may change titles/timelines based on client preferences/priorities.

30 ND32-18

Related Research 2014 Commercial Vehicle Planned Research

Research Topic Draft Timeline

2020 Vision: Global Medium-Heavy Commercial Truck Market – NC9A Completed

Strategic Analysis of North American Medium-Heavy Truck Leasing and Financing Market Completed

CV Telematics 2014 Outlook Completed

Strategic Analysis of Chinese CNG/LNG Truck and Bus Market Completed

Update Global Low-cost Truck Market Q3 2014

Impact of Big Data on Global Commercial Vehicle Businesses Q3 2014

Strategic Analysis of Global Medium-heavy Hybrid/Electric Commercial Truck Market Q4 2014

Strategic Analysis of Driverless Truck and Bus Technologies in Global CV Market Q4 2014

BRIC CV Telematics Market Outlook Q3 2014


Note: Titles and number of titles are subject to change and are not guaranteed. Frost & Sullivan may change titles/timelines based on client preferences/priorities.

31 ND32-18

Market Engineering Methodology

•One of Frost & Sullivan’s core

deliverables is its Market Engineering

studies. They are based on our

proprietary Market Engineering

Methodology. This approach, developed

across the 50 years of experience

assessing global markets, applies

engineering rigor to the often nebulous art

of market forecasting and interpretation.

•A detailed description of the methodology

can be found here.


http://www.frost.com/prod/servlet/me-research.pag

Brief Summary_ND32_18

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