What is, actually, a commercial vehicle, and why is this business of getting a loan to own one so difficult?

Most articles on motoring in India can be and are researched off the Internet to some extent or the other. On the other hand, there seems to be an amazing dearth of information on the subject of commercial vehicles in India, anywhere. Barring some dry statistics on manufacturing, some raw data on the vehicles themselves, and little bits and pieces here and there, it is almost as though the highly visible yellow licence plate industry does not even exist for much of the motoring and general media in India.

As though this was not bad enough, the cloak of silence and secrecy becomes even darker when the subject of financing for commercial vehicles is brought up, despite all efforts. Yes, there are arrangements for very specific categories like ex-armed forces personnel, sometimes there are "special" drives to help people from specific communities, but beyond that, for the average commercial vehicle driver who wants to become an owner, the road is lonely, bleak and full of obstacles. Put it this way-if you are not a "somebody", then getting a loan to buy a commercial vehicle will be at terms that will put ancient moneylenders to shame. Does 8%-10% per week shock you?
 
This is very difficult for most of us from the educated middle class to even begin to understand. The "average" commercial vehicle operator in India is expected to be a Master of every law pertaining to operating commercial vehicles on the road-local, district, state and national-as well as respond to and respect every agency out on the road ostensibly implementing them. Taxation, excise, octroi and other fiduciary aspects as well as frequent changes and often conflicting interpretations are supposed to be adhered to, ignorance of these can drop him into custody faster than a radiator boiling over when stranded at check-posts.

And what is his usual eventual dream? That one day, with hard work and luck, he will eventually be the owner and master of his own commercial vehicle.
 
So, first of all, what is, actually, a commercial vehicle, and why is this business of getting a loan to own one so difficult?
 
Let us, as always, start from the bottom up.
 
Starting from the motorcycle-taxis so popular in Goa and some other parts of India, moving on to three-wheeler autos, taxies, multi-purpose people-carriers (often operating also as quasi-public transport), pick-up trucks and upwards to huge gigantic articulated trailer trucks-and all points in between. Think about those interesting classic cars in Junagadh? The ancient Land Rovers thudding their way past off Darjeeling? The combo motorcycle front rickshaw rear "vans" in West Bengal? The round coracles with old scooter engines in Tamil Nadu? The combine harvesters from Punjab, the drill rigs from Andhra, and many more. By law supposed to be displaying yellow plates to signify the difference, but in some cases, for very specific purposes, they can also be white or black-and sometimes, as with the many 'jugaad' (homemade) vehicles all over the country, they need not have any registration plates.
 
Next, how does the man on the street, the actual driver-operator, get to eventually own one of these for himself? Like the rest of the middle class who have jumped straight into the easy finance for personal vehicles bandwagon, why can't they also get an easy loan and move ahead in life?
 
To start with, one has to understand the basics of the commercial vehicle industry in India. Briefly-about 15 years ago, this correspondent had the opportunity to conduct a survey and provide recommendations based on driver responses for a leading commercial vehicle manufacturer, and in this context travelled all over the country interviewing drivers and cleaners operating all sorts of commercial vehicles. The findings were then duly presented to the said manufacturers, who, in turn, provided a copy of their own internal research done on the basis of similar surveys of large fleet and institutional customers. The results could not have been wider apart.
 
The drivers and men on the road perceived even then the growth of the smaller commercial vehicle-witness the runaway success of the Tata Ace and its derivatives. The owners on the other hand wanted bigger capacity on single rear axles. The drivers demanded better in-cabin comforts like air-conditioning and sleeper berths, the owners were of the opinion that even a stereo or a comfortable driver's seat was a costly distraction. Maybe these still hold good today-but the big difference is that there is large category of single vehicle owner/operators on the road now, whether operating as part of a larger fleet, or whether as a stand-alone privateer-and his demands as well as needs for finance as well as vehicle specs are way different from that of the institutional or fleet customer.
 
At the same time, manufacturers respond to market trends and needs, which used to be driven largely by bigger and institutional customers like State Transport undertakings, defence and fleet owner/operators. Now they, the manufacturers, need to and are reacting to demands made by individual customers. Air-conditioners and comfortable sleeper berths in trucks and buses are no longer rarities. But, at the same time, the traditional banks and financiers are wary of dealing with stand-alone independent buyers.
 
So what's the present day solution?
 
Tweaked for local conditions nationally, broadly it is like this-dealers have their own network of local financiers who step in to fill the huge gap for loans and leasing needs, with eventual interest rates that are way above anything logical. These local financiers also provide, at a cost, coverage for all the other woes that can befall a client. None of this comes free, of course, and so what we have is an industry that feeds on itself-makes life difficult for the small entrepreneur, and in return, increases his cost of doing business.
 
So, net result, has the great automobile revolution in India by-passed the commercial vehicle segment, especially when it comes to financing for stand-alone customers?