Surging trend of tippers
The Construction industry today greatly relies on tipper for most of its mechanical loading – unloading duties. Moreover, the tipper market has surged greatly in numbers giving a boost to the country’s GDP growth.
India is experiencing a steady economic growth over the last few decades with the GDP growth of approximately 8% annually, largely driven by combination of investment, consumption demand and productivity growth. According to Goldman Sachs, India will play an increasing role in the global economy as demand from a growing working age population will continue to drive consumption demand.
It can be analyzed that the working population in the country too can contribute a meager 4% from their earning annually to India’s GDP. The country’s demographic dividend will be substantial over the last couple of decades. The country is likely to add around 110 million workers to its labour force over the years, which is more than the US, China, Russia and Japan.
The research agency further estimates governance to be a critical challenge and the way India resolves it would also affect its potential growth rates.
Tipper market
According to Truck Strategy report, from 2007 to 2011, the Indian market for medium and heavy tippers has increased by more than 17%. Heavy trucks were more heavily affected by the financial crisis than the light commercial vehicles, with declines posted in 2008 and 2009. Since this decline during which GDP growth fell to around 6%, India’s economy had rallied with economic growth of 9%. Recovery in construction sector has further increased the demand for heavy trucks, adds the report.
Tipper market: Relation between tipper market and construction industry
Tipper is playing an important role in construction industry and is one of the important equipment for construction projects.
The 16 ton and 25 ton segment is dominated by Indian companies whereas the 31 tonne is dominated by foreign players. Overloading is the major issue in India especially for off road tippers.
Going forward, the Truck Strategy Analysis projects 16 ton – 25 ton tippers (160-230 hp) to garner 75% market share by 2015 whereas the 31 ton tippers (220 – 300hp) to capture 25% market.
The Truck Strategy’s survey reveals that most of the customers may still prefer 25 ton, 6×4 tipper and for higher payload 31 ton tipper by 2015. Overloading is still an issue in India. Competition and quick return over investment are primary drivers for tipper operators towards overloading but due to overloading, product lifecycle will be reduced by 30 – 40%.
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