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SUBMITTED TO:
V.M.PATEL INSTITUTE OF MANAGEMENT
For fulfillment of partial requirements of the subject
Management Research Project – I of Semester III of MBA.
___________________
Swapnil Desai (05)
___________________
Dhaval Oza (12)
___________________
Minesh Patel (21)
___________________
Pradip Patel (24)
Date:
Place:
This is to certify that the contents of this thesis entitled “A COMPREHENSIVE STUDY
OF INDIAN COMMERCIAL ROAD VEHICLE INDUSTRY” by Swapnil Desai (05),
Dhaval Oza (12), Minesh Patel (21) and Pradip Patel (24) submitted to V.M.Patel Institute of
Management for the Award of Degree Master of Business Administration (MBA) is original
research work carried out by them under my supervision.
This report has not been submitted either partly or fully to any other University or Institute
for award of any degree or diploma to best of my knowledge.
Date:
Place:
PREFACE
Master of Business Administration is a course, which combines both theory and its
applications as its contents of study in the field of management. As part and parcel of this
course, every aspirant has to prepare Market Research Report on particular Industry .The
purpose of this report is to get the in depth knowledge regarding the Industry and enhance
student’s analytical skill.
One of the Indian booming Indian commercial vehicle industry which is being researched by
our group from the management perspective. By studying Indian commercial vehicle industry
from a management perspective we would be able analysis potential opportunity as well as
threats of the commercial vehicle industry. Also, attractiveness of new entrant would be
analysis with the help of Michael Porters five force model. Environmental scanning would be
with the help of PEST analysis (Political, Economic, Social and Technology).
The data for analysis is being collected through the Secondary sources like Internet,
Newspaper and published Journals
EXECUTIVE SUMMERY
This report is the study of Indian commercial vehicles industry. This report has helped us to
getting some very useful insight of the commercial vehicles industry. Tata Motor, Eicher
motor, Mahindra & Mahindra, Swaraj mazda are the dominant player of the Indian
commercial vehicle Industry. India is 13th largest commercial vehicle market in the world.
The last five years industry has grown CAGR of 14%. Commercial vehicle’s Industry’s share
in Indian automobile is 5.05% in the year 2007-08.
The Industry which grew at a rate of above 25% over 2001-07 has grown by just 5% in
FY08 so the economic fluctuation affect greatly to Indian commercial vehicle Industry.
Ability to enhance and vary product mix, Sales and distribution service network, Access to
new technologies are the key success factor of Indian commercial vehicle Industry.
An Indian railway is the only one competitor of Indian commercial vehicle Industry but
because of several advantage commercial vehicle Industry ruled over the Indian railway. In
near future we are not seeing any substitute of commercial vehicle Industry. Indian
commercial vehicle Industry use sales promotional tool as marketing tool most and for
advertisement the print media is preferred by the most of the Indian players.
Here we got chance to understand the fundamentals of Indian commercial vehicles industry
and also identifies the position of the industry, that how they had built its image in the
market.
ACKNOWLEDGEMENT
We express our deep and sincere thanks to our guide Dr. Mahendra Sharma and Dr. Rohit
Trivedi Initially they helped us in selecting this project and then guided us throughout the
project. Both of them also helped us by taking a lot of pain and sacrificing their personal
valuable time in completion of this project report.
We would like to thank Mr. Deepakbahi, Liberian, who took adequate care & effort in
searching books, magazines, journals, etc. So that we could complete our project smoothly
and well in stipulated timeframe.
Last but not the least: we would like to cite our beloved parents and all our friends for their
and encouragement, support and blessings. These pages could scarcely have been written
without their help.
We express our gratitude to the staff members of V.M. Patel Institute of Management, who
directly or indirectly helped us.
TABLE OF CONTENT
PREFACE I
EXECUTIVE SUMMERY II
ACKNOWLEDGEMENT III
LIST OF TABLES VI
LIST OF CHARTS VII
GLOSSARY OF TERMS 54
BIBILIOGRAPHY 55
LIST OF TABLES
Non-Financial Analysis
Financial Analysis
Marketing Analysis
The Indian Automobile Market growth is expected to grow at a CAGR of 9.5 percent
amounting to Rs. 13,008 million by 2010 which is a big in number. The Commercial
Vehicle Segment has been contributing to the automobile market to a great extent. So
as in passenger luxury cars now many foreign companies like Mercedes, Suzuki,
Chevrolet, Honda, Mitsubishi, Toyota, Hyundai etc. have been investing in the Indian
Automobile Market in various ways such as technology transfers, joint ventures,
strategic alliances, exports, and financial collaborations like Maruti joined hands with
Suzuki in passenger cars, same as Mahindra with Renault, hero joint ventures Honda
in two wheeler segment, ashkoa with Leyland in commercial vehicle segment. The
auto market in India can boast of attractive finance schemes, increasing purchasing
power, and launch of the latest products. Investments in the automobile industry by
the foreign companies in India help in strengthening the India’s economy.
India`s giant automotive manufacturer company TATA MOTORS has largest share in
commercial vehicle. And now they have acquired the jaguar and range rover globally,
capturing international market too, also they are exporting their key products in the
international market.
( Source : SIAM)
Passenger
Vehicles 723,330 989,560 1,209,876 1,309,300 1,545,223 1,762,131
Commercial
Vehicles 203,697 275,040 353,703 391,083 519,982 545,176
Three
Wheelers 276,719 356,223 374,445 434,423 556,126 500,592
Two
Wheelers 5,076,221 5,622,741 6,529,829 7,608,697 8,466,666 8,026,049
Grand Total
6,279,967 7,243,564 8,467,853 9,743,503 11,087,997 10,833,948
Industry Growth
Over the last five years light commercial vehicles (LCV) and medium/ heavy commercial
vehicle (M/HCV) segment have grown at a CAGR of 27% and 17% respectively. Although
growth of these segments has shown similar trend, volume growth in the M/HCV segment
has been more volatile. The demand for M/HCV goods carrier segment mainly depends on
higher capacity addition at the fleet operator level and also prone to severe demand shocks.
The LCV segment, though cyclical, usually exhibits steadier demand patterns on account of
wide usage range.
Sales + Exports
FY 08 % Market FY 07 % Market
Passenger Cars 25,891 Share2% 0 Share
Utility Vehicles 107,562 43% 92,305 41%
Total Of : Passenger
133,453 92,305
Vehicles
LCV FY 08 FY 07 Growth
Industry 62,150 62,586 -0.7%
M&M 10,403 8,651 20.3%
M&M share 16.7 13.8
Source; Bse capitaline
Major Models:
Utility Vehicles: Scorpio, Bolero, Pick-up, Commander, Hard-top etc.
Light commercial vehicles: Maxx Pickup, Maxx Maxi, and minibuses, Tourister.
Sales + Exports
FY 08 % Market Share FY 07 % Market Share
M&HCV-Passenger Carriers 21,776 45% 18,743 49%
M&HCV-Goods Carriers 157,625 64% 166,129 65%
Total Of : M&HCV 179,401 184,872
LCV-Passenger Carriers 18,575 55% 16,358 57%
LCV-Goods Carriers 141,697 65% 132,902 68%
Total Of : LCV 160,272 149,260
Total Of : Comm. Vehicles 339,673 334,132
(SOURCE: SIAM)
In above table we can see that in all the segment of commercial vehicle Tata motors market
share is going down compare to FY 2007 but still we can see that in all segment Tata motor’s
market share is above 50% so there is doubt that Tata is No 1 Company in commercial
vehicle Industry.
3.4 Eicher Motors
Eicher Motors (EML): EML produces commercial vehicles including trucks, buses,
motorcycles, automotive gears and components. The company has sold 8.1% of promoter's
holding to Swedish bus maker Volvo to form a joint venture, in which Volvo will pump up
Rs 1,082 crores. The JV would be a subsidiary of EML, where Eicher would hold 54.4%
equity and Volvo 45.6%. The manufacturing facility of Eicher Motors is located in
Pithampur, Madhya Pradesh. The plant houses some top-of-the-line equipments, a robust
infrastructure and has an annual production capacity of 30,000 vehicles. The company is one
of the leading manufacturers of commercial vehicles in India with a 33% market share in the
7T-11T segment.
Sales + Exports
FY 08 % Market FY 07 % Market
M&HCV-Passenger Carriers 2,148 Share4% 1,947 Share 5%
M&HCV-Goods Carriers 21,341 9% 17,589 7%
Total Of : M&HCV 23,489 19,536
LCV-Passenger Carriers 2,283 7% 1,915 7%
LCV-Goods Carriers 4,055 2% 6,621 3%
Total Of : LCV 6,338 8,536
Total Of : Comm. Vehicles 29,827 28,072
Source;SIAM
Eicher motor is another leading company in commercial vehicle Industry although we cannot
compare it with Tata motor as EML’s market share is not more than 10% in any segment of
Indian commercial vehicle industry. Eicher motor’s highest market share in medium and
heavy commercial vehicle segment it has 9 % market share in multi and heavy goods carrier.
CHAPTER 4
FACTORS AFFECTING INDIAN
COMMERCIAL VEHICLE
INDUSTRY
• Sales and distribution service network - A widespread sales and distribution setup
enables the company to ensure a geographically diversified client profile.
• Another concern is a slowdown in the Indian economy. This would lead to lower
investment in infrastructure which in turn will affect the CV demand
• Higher domestic inflation and increase in fuel prices are other major concerns.
Without a concomitant increase in freight rates increase in fuel price will have a
negative impact on demand for CVs.
• Rise in interest rates may prove to be a dampener on the CV demand, especially given
the fact that around 60-70% of vehicles purchased are financed.
4.9 Outlook
Although rise in interest rates and fuel price may dampen the growth of the sector in short run
the long-term outlook for the domestic CV industry remains strong. The expected
continuance of economic growth and investments in infrastructure will help the sector report
robust growth going forward. The entry of new players in the industry and the significant
capacity additions expected are however likely to keep the competitive pressures high. On the
demand side, a combination of tightening regulatory norms (on emissions and vehicle
scrapping) and increasing customer selectivity is expected to drive a shift towards high
tonnage quality products. The top players in the domestic CV industry have robust financials,
supported by strong cash accruals and a comfortable capital structure. These players are
capable of funding their significant investment plans over the medium term without resorting
to any large borrowings. Moreover, the ongoing capacity expansions are based largely on
outsourcing models, which aim at better sharing of risks with component suppliers and lower
the break-even levels. The significant export drives being made by the leading CV players are
likely to lower the risks arising from concentration on the domestic market and mitigate the
impact of cyclical downturns to an extent.
Chapter 5
Environmental Analysis
5.1 PEST Analysis
PEST analysis stands for "Political, Economic, Social, and Technological analysis"
and describes a framework of macro environmental factors used in environmental scanning.
PEST analysis is a useful strategic tool for understanding market growth or decline,
business position, potential and direction for operations.
Political factors include areas such as tax policy, employment laws, environmental
regulations, trade restrictions and tariffs and political stability.
Economic factors include the economic growth, interest rates, exchange rates and
inflation rate.
Social factors often look at the cultural aspects and include health consciousness,
population growth rate, age distribution, career attitudes and emphasis on safety.
The Indian Auto Industry is harmonizing both Safety & Emission regulations with
International Standards for sustained growth of the Industry for combating the environment
and become a global export hub. India has a well established and Regulatory Framework
under the Ministry of Shipping, Road Transport and Highways in which SIAM (SOCIETY
OF INDIAN AUTOMOBILE MANUFACTURERS plays a very important role. The entire
stake holders are part of the regulation formulation setup. The ministry issues the
notifications under the Central Motor Vehicle Rules and Motor Vehicles Act. The Safety
Regulations are being aligned with the ECE regulation and the Road Map prepared by SIAM
(SOCIETY OF INDIAN AUTOMOBILE MANUFACTURERS envisages alignment by
2010.
The In use Vehicle Emission norms have been tightened with effect from 1 st October 2004
and computerization model has been developed by SIAM (SOCIETY OF INDIAN
AUTOMOBILE MANUFACTURERS, which is already in place in the Major Metro Cities
and would be extended throughout the country in a phased manner.
5.3 Economic Environment
• The Indian economy has grown at 8.5 per cent per annum.
• The manufacturing sector has grown at 8–10 per cent per annum in the last few years.
• More than 90 per cent of the CV purchase is on credit.
• Finance availability to CV buyers has grown in scope during the last few years.
• The increased enforcement of overloading restrictions has also contributed to an
increase in the number of CVs plying on Indian roads.
• Several Indian firms have partnered with global players. While some have formed
joint ventures with equity participation, others have entered into technology tie-ups.
• Establishment of India as a Manufacturing hub, for mini, compact cars, OEMs, and
for auto components
• India’s huge geographic spread- Mass transport system.
There is a very large transportation system in India for the public which helps the economy to
the large scale.
• New measures are being taken to make the automobiles less polluting. This well help
in reducing the exploitation of atmosphere. Better atmosphere gives better life.
2) Ability to enhance and vary product mix- A diverse and broad product mix enables a
manufacturer to serve a wide variety of transportation solutions across different load
levels. It also helps in building strong brand loyalty among customers. In addition the
presence in business such as auto spares, buses, exports and defence helps companies to
weather the cyclicity in CV sales.
3) Sales and distribution service network - A widespread sales and distribution setup
enables the company to ensure a geographically diversified client profile.
6) Strong engineering skill in design of vehicle- In India every year five lakh new skilled
engineer come out so Indian automotive Industry can design more model so the human
recourse is the one of the major strength of Indian CV industry.
WEAKNESS
2) Low Investment in R &D - In India the investment rate in research and development
is very low according to one survey Indian company spend around 0.4% on research
and development where as in developed country they spend around 8% on research
and development.
3) Infrastructure Bottle neck- In India the Infrastructure facility is at very bottle neck and
the main roadblock factor for Indian automotive Industry is Infrastructure even today
some of the village are not connected with the Road transport facility and one thing to
be noted that The faster the Infrastructure growth the faster the growth of Industry and
specially the automobile Industry has much concern with Infrastructure.
Scarcity of Quality workforce- All though India is one of the biggest country who has
wide range workforce but the
OPPORTUNITY
1) Higher steel prices have been a key concern over the last two years. The CV industry
has tackled this both by passing part of the costs through price hikes and also by
optimizing their selling, advertising costs and treasury efficiencies.
2) Another concern is a slowdown in the Indian economy. This would lead to lower
investment in infrastructure which in turn will affect the CV demand
3) Higher domestic inflation and increase in fuel prices are other major concerns.
Without a concomitant increase in freight rates increase in fuel price will have a
negative impact on demand for CVs.
4) Rise in interest rates may prove to be a dampener on the CV demand, especially given
the fact that around 60-70% of vehicles purchased are financed.
CHAPTER 7
PORTER FIVE FORCE MODEL
Porter’s Five Forces Analysis:
Michael Porter identified five forces that influence an industry. These forces are: (1) degree
of rivalry; (2) threat of substitutes; (3) barriers to entry; (4) buyer power; and (5) supplier
power. Like other industries operating under free market, capitalistic systems, viewing the
automotive industry through the lens of Porter’s Five Forces can be helpful in understanding
the forces at play.
Degree of Rivalry
Despite the high concentration ratios seen in the Indian, which typically signify that a lesser
degree of competition is seen in the industry, rivalry in the India and the global automotive
industry is intense. Clearly, the concentration ratios do not tell the whole story. The
commercial vehicle industry in the India is no longer the playground of the Big 3 (Tata,
Ashok Layland, and Eicher); global companies are also competing in the Indian market like
Volvo, Hindustan Motors and Force Motors. U.S. companies have also globalized
themselves. The commercial vehicle makers Volvo and Force Motors entered a fairly
disciplined Indian market and have been very focused in growing their shares of the market.
The great diversity of rivals in terms of cultures and associated philosophies has intensified
rivalry in the industry. Market growth is slow in the established markets and companies must
fight fiercely to eke out gains or prevent losses in market share. However, growth is
potentially huge in the rapidly industrializing India; in these booming markets, companies
could take advantage of the opportunities to reap handsome rewards. The degree of rivalry in
the commercial vehicle industry is further heightened by high fixed costs associated with
manufacturing trucks and the low switching costs for consumers when buying different
makes and models.
Threat of Substitutes
The threat of substitutes to the commercial vehicle industry is fairly mild. Numerous other
forms of transportation are available, but none offer the utility, capacity of carrying heavy
loads, convenience, independence, and value afforded by automobiles. The switching costs
associated with using a different mode of transportation, such as train, may be high in terms
of personal time (i.e., independence), convenience, and utility (e.g., luggage capacity), but
not necessarily monetarily (e.g., round trip train fare would most likely be less expensive than
the cost of fuel consumed on a similar round trip, parking, vehicle insurance, and
maintenance). Road transport competes with the Indian Railways (IR) for transportation of all
major commodities, with roads having an edge in transportation of non-bulk commodities
owing to point to point delivery with railways commanding a higher share in transportation of
bulk commodities. Over the years, roads have gained an increasing preference vis-à-vis the
railways and the share of road transport currently stands at about 65%. The exception to this
statement occurs in the global urban areas with high population densities. In these areas, the
substitutes available (e.g., loading small vehicles, Gov. Vehicles etc.) can be less costly than
automobiles and thus alternative modes of transportation are often preferred. Also, there are
inherent underlying social and cultural attitudes that keep people from owning automobiles in
some parts of the world. India is constrained either by geography, race, class, or religion and
the need for transportation of things is not as great, yet. Currently wants or needs are growing
more and more in every region of India and commercial vehicle’s demand are growing more
and more with it. However, the marketing arms of the global commercial vehicle
manufacturers are certainly working very hard to change this paradigm, and with
unprecedented production volumes worldwide, all signs indicate that they are succeeding.
Most with the ability and means to transport things with commercial vehicles, each people in
the society with the necessary infrastructure (e.g., roads and fuelling stations), will do so.
Barriers to Entry
The barriers to enter in the commercial vehicle industry are substantial. For a new company,
the startup capital required to establish manufacturing capacity to achieve minimum efficient
scale is prohibitive. A commercial automotive manufacturing facility is quite specialized and
in the event of failure could not be easily retooled. Although the barriers to new companies
are substantial, established companies are entering new markets through strategic
partnerships or through buying out or merging with other companies. In fact the barriers to
entry for new (or different) markets may be quite low.
Ashok Eicher
Tata Motors M&M Leyland motors Industry
FY08 FY07 FY08 FY07 FY08 FY07 FY08 FY07 FY08 FY07
Raw
Materials 68.82 67.28 70.8 64.47 75.56 67.13 74.58 69.85 72.56 73.31
Staff cost 4.82 4.41 6.89 5.87 6.45 5.08 4.95 4.45 4.33 3.91
Other
expenditure 13.66 13.42 8.68 12.54 7.2 8.9 15.11 15.14 12 12.03
Depreciation 2.14 1.91 2.2 2.22 1.96 2.1 1.6 1.72 1.93 1.83
Interest 0.85 0.72 0.23 -0.75 0.62 0.08 0.62 0.66 0.53 0.45
Tax 2.52 2.46 1.66 2.93 1.41 2.5 1.42 1.57 3.11 3.2
Source: BSE CAPITALINE
The above table shows the Inter firm cost structure comparison of four major players
of Indian commercial vehicle Industry. The four major players are Tata motor,
Mahindra& Mahindra , Ashok Leyland and Eicher motor are compared with
Industry’s average cost structure. As we can see in above table the major cost they
spending on Raw material almost above 50% of their spending on raw material. The
main raw material is the steel and price of still is very fluctuating and the industry
afraid of that fluctuation. In the year 2007 the most of the CV Company has to suffer
loss because of increase in the price of steel. According to Industry average cost
structure average spending on raw material is 73.31%. Eicher motor is the company
who spending highest on Raw material it spend around 75% and Tata motor spend
least on Raw material and the reason can be that Tata has its own steel plant so it is
Tata’s plus point. See the Fy07 and FY 08 data the average spending on Raw material
decrease around 1 % so this is because of decrease in price of steel. The second cost
factor is staff cost Industry’s average spending on staff cost is 4.33% . Mahindra and
Mahindra and ashok Leyland are the company whose spend on staff cost is around
6.5% . This is the cost which will be increasingly day by day. Another major cost of
the industry is other expenses like marketing cost and miscellaneous expenses. This
expense is above 12% in each major player. If we talk about the cost of depreciation
than see the depreciation cost is not more than 2.5 in any firm in fact the depreciation
cost in Eicher motor and Ashok Layland is decrease compare to last year this is
indicate that that two companies has not invest in machinery during the year. If we talk
about the cost of interest than it is the notable point that most of the commercial
vehicle industry’s company are registered in share market and they are doing business
on equity capital structure so they have not much more spending on interest in fact in
the year 07 Mahindra has earned income of interest. It is the good sign that the
company is using their own capital.
Light commercial goods carrier vehicle’s domestic sales of all the major players of
commercial vehicle industry are given above. As the details of financial year 07 and year 08
showing that Tata Motors Ltd. is having the highest sales 120856 in the first year 2008 as the
goods carrier vehicle details. Mahindra & Mahindra Ltd. is also getting half sales in the year
2007 and year 2008 than Tata Motors Ltd which is 43186 and 49860 respectively. In compare
with all the companies, Eicher Motors Ltd. and Swaraj Mazda Ltd. and Force Motors Ltd. are
having very low market share. With respect to the market share in the year 2007 Tata Motors
is having 67.61% market share which is highest in two years and Mahindra & Mahindra Ltd.
is having 25.63% and 26.5% market share in the year 2007 and year 2008 respectively.
CHAPTER 9
MARKETING DYNAMICS
9.1 Segmentation
Breakup of the industry by Segment
Commercial industry divided in to four segments. As looking to the data the highest CAGR
in 16-25 tonnes trucks where the lower CAGR in 5-7 tonnes light commercial vehicles. Other
having CAGR rather than LCV.
Source: Adex
Compared to 2007, print advertising of Automobiles dropped by 13% during 2008. It was
100 during 2008.
Source: Adex
'Passenger Vehicles' were the front runners in Print advertising with 64% share followed by
‘Motorcycle’ and ‘Commercial Vehicles’ with 17% and 7% share respectively during 2008.
Source: Adex
More than 55% of Automobile ads in Print were for Sales Promotion during
2008.Among the Sales Promotion ads, ‘Multiple Promotion’ had the maximum share
of 47% followed by ‘Discount Promotion’ and ‘Add on Promotion’ with 23% and
14% share respectively.
CHAPTER 10
GLOBAL COMPETITIVE FORCES
10.1 Competitiveness of Indian Automotive Manufacturing
In order to emerge as a manufacturing hub, India would face competition from other
low cost countries such as
• China
• Thailand
• Brazil
We have compared the cost competitiveness of automotive (car and CV compared separately)
manufacturing in India with respect to these countries in terms of factors like
• Taxes and duties
• Cost of manufacturing (for example, power and fuel costs, labour costs, including
productivity interest rates)
• Economies of scale
Competitiveness of manufacturing in India can be improved by reducing the level of
taxes and the cascading impact of taxes and by improving the business infrastructure
• India compares favourably with other low cost countries in productivity adjusted
labour cost
• Indian labour productivity in the manufacturing sector is on an increase with the
application of production management techniques and many companies have doubled
their productivity in last five years
• Government of India has earmarked nearly Rs 10 billion for human resource skill
development initiatives across industry sectors.
Source: Government websites, discussions with leading automotive players, IMaCS Analysis
• Indian manufacturers suffer from a cost disadvantage vis-à-vis Chinese manufacturers
mainly because of higher level of taxes and their cascading impact, higher cost of
labour (arising out of inflexible labour laws) and higher interest costs and power and
fuel costs
• Power costs in India vary from state to state, and are much lower than the average
considered for calculations in the power surplus, hydroelectricity generating states.
Source: Government websites, discussions with leading automotive players, IMaCS Analysis
• Indian vehicle manufacturers have a small cost disadvantage vis-à-vis Thai vehicle
manufacturers, primarily due to higher level of taxes in India. The cost disadvantage
has reduced by 2.23 per cent over last year in the case of small cars due to two
consecutive cuts in excise duty announced by GOI in FY 2008-2009.
• However the large market potential and steady growth of the Indian market more than
makes up for this disadvantage.
•
Cost Competitiveness - India versus Brazil
Source: Government websites, discussions with leading automotive players, IMaCS Analysis
• India is competitively positioned vis-à-vis Brazil in cars as well as CV
• India enjoys greater scale advantage as compared to Brazil in the case of cars as
capacity utilisation in India is better, despite Brazil having larger installed capacities
CHAPTER 11
FINDINGS
1. India`s giant automotive manufacturer company TATA MOTORS has largest
share in commercial vehicle.
2. The industry has grown at over CAGR of 14% p.a over the last 5 years
5. The Industry which grew at a rate of above 25% over 2001-07 has grown by
just 5% in FY08 so the economic fluctuation affect greatly to Indian commercial
vehicle Industry.
6. Tata Motor, Eicher motor, Mahindra & Mahindra, Swaraj mazda are the
dominant player of the Indian commercial vehicle Industry.
7. Ability to enhance and vary product mix, Sales and distribution service
network, Access to new technologies are the key success factor of Indian commercial
vehicle Industry.
8. Higher steel prices have been a key concern over the last two years.
9. Slowdown in the Indian economy would lead to lower investment in
infrastructure which in turn will affect the CV demand.
10. Rise in interest rates may prove to be a dampener on the CV demand,
especially given the fact that around 90% of vehicles purchased are financed
11. Cost advantage is the strongest point for the Indian commercial vehicle
Industry.
12. Indian railways is the only one competitor of Indian commercial vehicle
Industry but because of several advantage commercial vehicle Industry ruled over the
Indian railway.
13. In near future we are not seeing any substitute of commercial vehicle Industry.
14. Indian commercial vehicle Industry use sales promotional tool as marketing
tool most and for advertisement the print media is preferred by the most of the Indian
players.
GLOSSARY OF TERMS