Posted On: 2017-09-27
Growth in farm mechanization on account of decreasing labor availability and increasing labor cost are the prime factors driving the demand for diesel engines in India. Further, the growing retail & logistics industry in the country is also contributing to the increase in the sale of commercial vehicles, thus driving the diesel engine market. Although, the diesel passenger vehicle market volume in percentage terms has declined in 2017 due to the shrinking price gap between petrol and diesel fuels.
According to 6Wresearch, India diesel engine market revenues are projected to grow at a CAGR of 4.9% during 2018-23. Projects such as the $100 billion Delhi-Mumbai industrial corridors which are expected to complete by 2040 and cover the construction and development of 8 industrial cities would further increase the demand for diesel engines in the country. Government initiatives such as Pradhanmantri Krishi Sinchai Yojana, which aims to reduce monsoon dependency and increase irrigation cover across the nation would also increase the requirement of farm equipment during the forecast period. With the growing demand for farm equipment across the country, the demand for diesel engines would also increase over the coming years.
According to Ravi Bhandari, Research Analyst, 6Wresearch, "Farm equipment and automobile sectors are the key revenue contributing segments in India diesel engine market on account of their high utilization in agricultural and commercial sectors"
"Other major consumers include construction equipment and power Genset, whose market is expected to spur on account of growing infrastructure development in the country," Ravi further added.
According to Prakhar Srivastava, Research Associate, Research and Consulting, 6Wresearch, "31-100 Hp contributes the highest revenue share and is projected to maintain its dominance during the forecast period on account of its high consumption in automobile and agricultural applications. Amongst all the applications, automotive and agricultural sectors dominated the market.
"With leading players innovating new and better products in this range for export as well as the domestic market, the demand for diesel engines would grow across the country in near future," Prakhar further added.
Some of the major companies in India's diesel engine market include- Cummins, Ashok Leyland, Greaves Cotton, Simpson, Kirloskar, Tata Motors and Mahindra.
"India Diesel Engine Market (2018–2023)" provides in-depth analysis with 94 figures and 40 tables covered in more than 150 pages. The report estimates and forecasts the overall India diesel engine market by revenues, volume, Hp, applications such as automobile, agriculture, power, construction equipment, industrial, and regions. The report also offers insights on competitive landscape, company profiles, market drivers, and restraints.