Why Japan’s Kyokuto is Doubling Down on India’s Commercial Vehicle Growth

By Jony Shekhawat | Published Date : February 19, 2026

Kyokuto-backed Satrac plans major expansion to tap India’s fast-growing commercial vehicles market.

Standing inside the massive new plant at Sriperumbudur, surrounded by robotic welding arms and laser cutting machines, MC Bantwal looks back at very humble beginnings. Around 25 years ago, he started SATRAC Engineering in a small unit in Bengaluru with just ₹2–3 lakh investment.

From Small Bengaluru Unit to South Asia’s Largest Trailer Plant

Table of Contents

1. From Small Bengaluru Unit to South Asia’s Largest Trailer Plant

2. $100 Million Commitment and Big Expansion Plan

3. Breaking the ‘Jugaad’ System in Body Building

4. Strong Ties with Major OEMs

5. Defence Projects Add Technical Edge

6. Waste Management: The Next Big Opportunity

7. Targeting ₹1,000 Crore Revenue

Read More: SIAM Convenes Stakeholders to Address Rising Road Accidents

Coming from a family of doctors in Mangalore, he chose business instead of medicine. In the early days, the company was building simple agricultural trailers for farmers. No big contracts, no high-tech equipment. Just basic products and slow growth.

Today, the story is very different. Satrac is now backed fully by Japan’s Kyokuto Kaihatsu Kogyo Co., Ltd., which acquired 100% stake in 2020.

$100 Million Commitment and Big Expansion Plan

Kyokuto has committed nearly $100 million (around ₹900 crore) for expansion in India. The new Sriperumbudur facility near Chennai is being called South Asia’s largest trailer manufacturing plant.

This expansion comes at a time when India’s truck market is growing fast, especially in mining, construction and logistics. Satrac wants to capture this rising demand in a more organized and structured way.

The company is planning a seven-year roadmap with four more plants in places like Jamshedpur, Gujarat, Pune and Bengaluru. Each location is selected carefully near key industrial hubs and major OEM partners.

Breaking the ‘Jugaad’ System in Body Building

In India, many commercial vehicle bodies and trailers are still built in small, unorganised workshops. Big companies manufacture only the chassis, while local fabricators build the cargo body.

This unorganised setup sometimes leads to poor safety standards. Bantwal openly said that many unsafe builds become “death machines” on highways due to bad brakes or weak structure.

Satrac’s idea is simple — bring engineering discipline and quality standards to this fragmented industry. Whether it is heavy trucks for mining or specialised carriers, the company wants better durability and lower total cost of ownership.

Strong Ties with Major OEMs

Satrac works closely with large vehicle manufacturers like Tata Motors, Daimler India Commercial Vehicles, Ashok Leyland, Volvo Eicher Commercial Vehicles, Scania and Mahindra.

These partnerships give Satrac steady demand across trailers, tippers and cargo bodies. Even pickup trucks used in logistics and industrial transport require reliable body solutions, and organised players are slowly gaining space in this segment.

Defence Projects Add Technical Edge

Apart from regular commercial orders, Satrac also manufactures superstructures for defence applications, including systems linked to Indian Army programs and missile platforms like the Akash missile system.

Though defence contributes a smaller revenue share, it demands very high precision and quality. This experience strengthens the company’s engineering capability across sectors.

Waste Management: The Next Big Opportunity

Looking ahead to 2035, Satrac plans to enter urban waste management and recycling. With guidance from Kyokuto, which has strong experience in Japan’s recycling ecosystem, the company wants to introduce mechanised garbage collection systems in Indian cities.

This includes compactors and containers mounted on commercial vehicle chassis, including buses converted for municipal usage and even future electric trucks for city waste operations.

India’s garbage management system still needs major improvement. The estimated market size for mechanised waste handling is around ₹1,500 crore. Satrac sees this as a long-term growth engine.

Targeting ₹1,000 Crore Revenue

Last year, Satrac clocked around ₹550 crore in revenue. With the new plant, the target is ₹1,000 crore within two years. The Sriperumbudur facility can produce 800 units per month now, and capacity may increase to 1,200 units after further automation investment.

India’s commercial vehicle ecosystem — from heavy trucks to pickups and specialised carriers — is clearly expanding.

With strong Japanese backing, advanced technology and long-term planning, Satrac is trying to move from a small trailer maker to a key player in India’s organised trucks and mobility infrastructure space.

The road is not easy because the unorganised market is still large and cheaper. But the company believes quality, safety and engineering discipline will slowly win customer trust.

Also Read: PM Rahat Scheme Introduced: ₹1.5 Lakh Cashless Help for Road Accident Victims

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Frequently Asked Questions on Commercial Vehicles

Q1. What is the mileage of commercial vehicles in India?

Ans. Mileage depends on the segment and load. Light commercial vehicles usually give 14–20 km/l, medium trucks offer around 6–9 km/l, while heavy trucks deliver 3–5 km/l depending on terrain and driving conditions.

Q2. What is the price range of commercial vehicles?

Ans. Prices start from around ₹5–6 lakh for small cargo vans and pickup trucks, while heavy-duty multi-axle trucks can cost ₹35–60 lakh or even more based on configuration.

Q3. What is the loading capacity of commercial vehicles?

Ans. Loading capacity begins from about 750 kg in small vehicles and can go beyond 40 tonnes in heavy commercial trucks. It varies according to axle setup and vehicle category.

Q4. Which new trucks have been launched recently in India?

Ans. Recently launched trucks focus on better fuel efficiency, improved driver cabins, telematics systems and compliance with BS6 Phase 2 norms. Many brands are also introducing electric trucks for urban transport and last-mile delivery.

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