India's huge and growing market for tractors, trucks and buses offers a significant opportunity for rotational molders of diesel fuel tanks made from polyethylene, according to Thor Kamfjord, application marketing manager for resin maker Borealis A/S of Lyngby, Denmark.
India's commercial vehicle market is growing on average 16 percent a year, vs. flat growth in Europe, Kamfjord said at the recent Association of Rotational Molders International's South Asia Region Division conference in Noida.
India has been the world's largest market for tractors since 1996 and now makes more than 240,000 per year in a market that has doubled in size in the past decade. Some 270,000 tractors are sold in the country each year, compared with 150,000 in the U.S.
He said the production cost for one tractor in India is about half that of a more developed country, which helps explain why Indian tractor exports are growing 18-20 percent a year. India exported 16,100 tractors in 2003, he said.
The Indian heavy-truck market has doubled in just five years, and India now produces 210,000 vehicles a year. India ranks among the world's leaders in buses, building more than 25,000 large buses and coaches per year; that equals the size of the entire West European market, Kamfjord said.