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Light Commercial Vehicles: Delivering performance, redefining logistics

Md. Mazharul Alam
26 Sep 2023 17:01:44 | Update: 26 Sep 2023 17:03:43
Light Commercial Vehicles: Delivering performance, redefining logistics

Today’s customers increasingly make purchase decisions based on which retailer can deliver their orders the fastest. According to several reports, almost half of shoppers abandon their online carts if the shipping times are too long. Responding to customers’ expectations for delivery speed often requires significant changes in technology, processes and partnerships. However, one thing remains unchangeable in the contemporary shopping sector – delivering fast is one of the most competitive services a business can offer now.

When it comes to making swift deliveries over short distances, not always are heavy duty trucks the best option for last mile delivery. Factors such as time, the volume of goods, accessibility to roads and traffic are a few things that entrepreneurs should consider when choosing a vehicle for their deliveries.

Light commercial vehicles (LCVs) are great examples of vehicles that have been designed specifically to make deliveries more efficient and effective and make the lives of drivers in urban environments easier. LCVs are ideal for a faster last mile delivery. These vehicles have minimal ‘no vehicle’ restrictions, making them a perfect delivery option to retail stores, warehouses, subdivisions and private locations – all without the hassle of hiring trucks.

With a relatively smaller size, LCV’s can be used in various purposes. Usually, the capacity of LCVs is up to 1400 kilograms, or more depending on a few factors. This space gives businesses a good amount of space to transport bulky items for office fixtures and supplies, furniture and appliances, stores supplies, hardware machines and tools, gym equipment and so much more. The light commercial vehicle (LCV) industry has been steadily growing and evolving over the years, playing a vital role in the country’s economic development through delivering different industrial product such as pharmaceutical, freezer Van and poultry products in the remote areas. LCVs, also known as light-duty trucks or vans, are versatile vehicles designed for various commercial purposes.

The increasing use of innovative and advanced materials in modern commercial vehicle design is helping to reduce fuel consumption while at the same time improving performance and maintaining high levels of safety. Owing to this convenience and the rising number of small and medium enterprises and young entrepreneurs running businesses across Bangladesh, the market for light commercial vehicles (LCVs) is growing. 

For example, the expansion of poultry and agro-based businesses in the country is causing many entrepreneurs to either send their products all over the country or to the supplying feed and other sectors. So, there definitely is a rising demand for these vehicles. The LCV market size reached about Tk 1,200 crore in 2021 with annual sales averaging 11,000 units for the past three years. Therefore, now is the time to focus on utilizing the advanced technologies and support the already growing industry to further flourish in a sustainable manner. 

Land allocation is one of the biggest challenges for the local assemblers and we need more government support in this regard to expand the business said, S M Jashim Uddin, CBO and GM Motor Vehicle Division, Energypac. He added, In Bangladesh, Partnering with Chinese world renown automaker JAC, Energypac Power Generation assembles 1500 Unit of Light commercial vehicles in their state -of- the art factory located at Gazipur.

JAC has been operating more than 160 countries worldwide with commitment to bringing newer updated technological inclusion in the automobile industry and Energypac is working toward bringing these affordable and more fuel-efficient vehicles in Bangladesh.

However, to expand the light commercial vehicles industry, concerned authorities need to take steps. In this regard, proper facilitation from the government such as infrastructure support, Tax Benefit, VAT exemption, making arrangement of easily accessible, uncomplicated and affordable loan facility from banking and non-banking financial institutions (NBFIs) and land allocation are necessary.

Now more than ever, there is a great demand for light commercial vehicles, primarily for businesses that need to pick up or deliver small consignments. From transportation and logistics to small businesses and urban deliveries, LCVs serve as the backbone of many industries. They can be run 24/7 hours at anywhere with less amount of fuel consumption and superior output. Hence, the government, financial institutions and industry experts must come together to make the industry bigger and more prosperous.


The writer is a communication professional