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Attention to the practical requirements and needs of the logistics operations of a society will always bring meaningful and always needed manufacturing related to the logistical and passenger transport shuttling and infrastructure operations. Along the broad ranges of fulfilling these practical needs are manufacturing operations ranging from construction and refrigerated truck operations to construction tipper and full coach bus operations. Every operational vehicle rolling along our roads needs to be strong, safe, and well-engineered. This bus and truck body building operation offer the combination of long term growth and a stable demand for customized body building along with premium pricing to the startup entrepreneurs entering this sector.
Why Bus and Truck Body Building is a Smart Choice?
Road transport is absolutely the backbone of most societies operational trade and commuting. Every chassis OEM (original equipment manufacturer) sells will need to have a body added to it,and this is where independent body building entrepreneurs come into operations. Further, the requirements, needs and therefore demand for operational commercial vehicles and needs operational shuttling of passengers along our societies continues to expand. Along these operational requirements and practical needs of society there are enormous potential manufacturing and fabrication requirements focused around customizing building operational bodies along with premium pricing for start up entrepreneurs.
It is also worth noting that this business can start small. For example, a small to mid-sized business could acquire a reputable shed, some basic fabrication machinery, a skilled workforce, and start a bodybuilding operation, eventually expanding to more complex machinery such as CNC routers and jigs, and a spray booth as demand dictates.
Market Size, Share, and Industry Trends
On a global scale, the major drivers of demand in the commercial vehicles industry are GDP growth, construction, expansion of logistics, and investments in public transport. There is also robust demand in developing economies, particularly in Asia and Africa, for mid- and heavy-duty trucks and buses, which benefits body builders.
Some of the key trends influencing the industry are:
Export Opportunities
Emerging markets, including Africa, the Middle East, South Asia, and Latin America, have an increasing demand for well-constructed bus and truck bodies. Many countries import chassis from global OEMs and then either have bodies constructed locally or they sub-contract the construction to overseas partners.
A bus and truck body assembling company that is:
will easily win export orders for CKD/SKD body kits, complete buses, and specialized vehicle bodies. There are considerable export opportunities with strategic partnerships (including, but not limited to, OEMs) with trading houses or project contractors in the mining, construction, oil and gas, public transport, etc. industries.
Overview of Manufacturing Process
The overall manufacturing process for bus and truck body construction includes:
Established Players in the Industry
Understanding the competitors in the field helps the new entrants devise benchmarks and positioning strategies. Some of the name-renowned companies in India are:
It is not essential for the new entrants to directly compete with the established players; rather the new entrants can carve a niche for themselves in regional markets where they can position themselves as flexible, cost effective, and responsive to customer needs.
A Final Thoughts for New Entrepreneurs
The bus and truck body building is a grounded, asset backed, manufacturing process with a long-term connection to the logistics, public transport, and infrastructure development of a country. It will have a repetitive demand, the possibility of specialization, and the possibility of growing from a workshop scale to a large scale organized and internationally competitive
For the first time founders and the promoters of the MSME sector, who have the knowledge of fabrication, operations and customer service, will find it a reasonable business with long-term growth potential.
| Plant capacity | Plant & machinery | Working capital | Cost of Project | T.C.I | Return | Break even |
|---|---|---|---|---|---|---|
| 11 Nos. Per Day | 598 | N/A | 2545 | 25 | 54 |
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