Commercial Vehicles

1. What are LCVs, MHCVs, HCVs

LCVs stands for light commercial vehicle, HCV for heavy commercial vehicles and
MHCV for medium and heavy commercial vehicles. In common parlance, these are more
popularly known as trucks. However, there is a difference between LCV and HCV.
Light commercial vehicles, as the name suggests carries lighter or lesser load compared
to the heavy commercial vehicles. As a result, LCVs are also generally used for shorter
routes, also known as feeder routes, compared to HCVs.
HCVs are generally used in long distances and bulk movements.
2. How is a LCV and HCV classified?
The classification of commercial vehicles as per the Motor Vehicle Act is based on the Gross
Vehicle Weight (GVW). As per the act, the vehicles are categorized by the GVW in three catgories.
12 tons Heavy Commercial vehicle
6-12 tons Medium Commercial vehicle
< 12 tons Light Commercial vehicle
However, the Society of Indian Automobile Manufacturers (SIAM) classified the vehicles
differently
8 tons Heavy Commercial vehicle
< 8 tons Light Commercial vehicle
SIAM has further changed this classification from April 2002 and the vehicles are now divided
between passenger carriers and goods carrier based on mass in tonnes and number of passengers.
The breakup of the classification is as under:
MHCVs
A. Passenger carriers
A1 Max mass 7.5 tonnes 12 tonnes
A2 Max mass 12 tonnes 16.2 tonnes
A3 Max mass > 13 tonnes

B. Goods carriers
B1 Max mass 7.5 tonnes 12 tonnes
B2 Max mass 12 tonnes 16.2 tonnes
B3 Max mass 16.2 tonnes 25 tonnes -Rigid vehicles
B4 Max mass
a. 16.2 tonnes 26.4 tonnes Haulage Tractor (Tractor, semi trailer, trailer)
b. 26.4 tonnes 35.2 tonnes
c. > 35.2 tonnes

LCVs
A. Passenger carriers
A1 Max mass upto 5 tonnes

A2 Max mass 5 tonnes- 7.5 tonnes

B. Goods carriers
B1 Max mass upto 3.5 tonnes
B2 Max mass 3.5 tonnes 5 tonnes
B3 Max mass 5 tonnes 7.5 tonnes

3. What is the size of the Indian commercial vehicles market?

Commercial vehicle forms approximately three per cent of the total automobile industry.
There has also been a shift in the sale of commercial vehicles. M&HCV sales have had a
higher share compared to LCV in the overall commercial vehicles due to the improved
road networks and the mileage efficiencies in carrying higher load.
4. Is there a co-relation between CV sales and GDP growth?
Commercial vehicles market is one of the rare industries where the absolute level of sales
fluctuate sharply unlike other industries where growth fluctuates. Perhaps the only
other industry that faces a similar problem is that of consumer durables like
televisions, refrigerators, washing machines.
An analysis of GDP growth and total commercial vehicles sales levels from 92-93
onwards has shown strong correlation with respect to long-term movements, though
certain micro factors could have played a significant role in the year-to-year
fluctuations.
A study of long-term patterns carried out by the Economic Times Intelligence Group
(ETIG) suggests a strong correlation between commercial vehicle sales and GDP
growth.
CV sales had reached their peak in 95-96 largely as a result of three consecutive years
when the industry growth rates were 36.9, 23.5 and 20.7 per cent. Seven per cent GDP
growth rates and expectations of a fast growing economy had fuelled the take-off then.