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Aug-12 IIP growth at 2.7% was somewhat higher than beaten down expectations , raising hope of a modest
revival in industrial production.
Mining, Manufacturing and consumer durable showed positive growth in Aug 12 compare July 12
Fleet owner Profit
Source: CSO
Inflation
Diesel Price 51.6
WPI CPI-IW
18.2
In last 10 year diesel prices has increased drastically that effect negatively on fleet owners profit and business
700 45 50
40
600 30
40 20
500 10
400 0
35 -10
300 -20
-30
200 -40
30 -50
100 FY 81- FY 83- FY 85- FY 86- FY 87- FY 91- FY 93- FY 97- FY 99- FY 00- FY 01- FY 08- FY 09-
83 85 86 87 91 93 97 99 00 01 08 09 12 (E)
0 25
CAGR, M&HCV % 23 -5 5 -10 14 -17 29 -31 41 -29 22 -37 25
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(E) CAGR, GDP % 7 5 4 4 6 3 7 5 7 4 8 5 6
Railway freight (Bn tonne Km) Railway Market Share % CAGR, M&HCV % CAGR, GDP %
Source: ACG
60 0,00 0 35 %
31%
30%
30 %
50 0,00 0
25 %
20 0,00 0
10%
10 %
5%
0 0%
Source: ACG
14 0,00 0 34 %
20 0,00 0 67 %
66%
18 0,00 0
66% 66 %
12 0,00 0 33 %
16 0,00 0
33%
64%
65 %
10 0,00 0 32 %
14 0,00 0
64 %
32% 31%
12 0,00 0
80 ,000 31 %
10 0,00 0 63 %
80 ,000
62 %
60 ,000
40 ,000 29 %
61 %
40 ,000
29%
20 ,000 28 %
60 %
20 ,000
0 59 %
0 27 %
2008-09 2009-10 2010-11 2011-12 2012-13 (Q2) 2008-09 2009-10 2010-11 2011-12 2012-13 (Q 2)
Source : ACG
18 ,000 8%
16 ,000
7% 7%
14 ,000
Segment Top performer
6%
Tata 407 is flagship product in this segment in the past decade, with around 80%
(6 - 7.5t) market share. BharatBenz will try to snatch this segment by its new
12 ,000
5%
product
10 ,000
4%
8,0 00
3%
2%
2%
4,0 00
1%
2,0 00
0% 0% 0% 0%
Mahindra has lost market share by 2% in FY 2011-12
2008-09 2009-10 2010-11 2011-12 2012-13 (Q 2)
7,0 00 2% 2,0 00 1%
2% 2%
1,8 00
1% 1%
6,0 00
2%
1,6 00
1% 1%
5,0 00
1%
1,4 00 1%
4,0 00
1% 1%
1,2 00 1%
1% 1%
1,0 00 1%
3,0 00
0.4%
1%
80 0 0.3% 0.3% 0%
1%
2,0 00
60 0 0%
0% 0% 0%
40 0 0%
1,0 00
0%
20 0 0%
0 0%
0 0%
35 0 0.11% 0.1 2%
30 0
Mahindra Navistar has gained 2% market share but lost 1% in
FY 2011-12. Loadking is having 30-33% market share in South
0.1 0%
India.
25 0
0.10% 0.0 8%
20 0
0.05% 0.0 6%
15 0
impressive growth
0.0 2%
50
35 0,00 0
27% 27% 40 %
30 0,00 0
8% 20 %
-20 %
20 0,00 0
-60 %
15 0,00 0
-80 %
To increase investments in construction,
10 0,00 0
-122% -10 0%
-12 0%
Then we will see some positive sign in this segment in
second half year of FY 2012-13
0 -14 0%
Source : ACG
70 ,000 23 %
20 0,00 0 67 %
66%
18 0,00 0
66% 66 %
60 ,000
23 %
16 0,00 0
23% 22 %
64%
65 %
50 ,000
14 0,00 0
22 %
64 %
12 0,00 0
21 %
40 ,000
21%
10 0,00 0 63 %
62%
21 %
80 ,000
62% 62 %
30 ,000
20 %
60 ,000
61 %
20 ,000
20% 20% 20 %
40 ,000
20% 19 %
60 %
10 ,000
20 ,000
19 %
0 59 %
0 18 %
Source : ACG
Tata motors sales have increased every year but market share is
fluctuating near 60
12 ,000 10 % 60 0
512 0.4 0%
0.55% 0.3 5%
10 ,000 50 0
0.3 0%
40 0
8,0 00
0.2 5%
297
30 0 0.2 0%
6,0 00
3% 219 215
0.1 5%
4,0 00
2% 20 0
2% 2% 0.15% 85 0.1 0%
2,0 00
2% 10 0
0.03%
0 0.0 0%
0 0%
2008-09 2009-10 2010-11 2011-12 2012-13 (Q2) 2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)
Source : ACG
4,0 00 1.4 %
3,5 00
1.2% Positive sales of AMW specially in 25t till 2011-12, tipper segment
1.2 %
1.0%
3,0 00
1.0 %
2,5 00
0.8 %
Mahindra Navistar is still struggling to show its presence,
2,0 00
however it has registered increase in market share from 0.3 to 1.2%.
0.6 %
1,5 00
0.3% 0.4 %
0.2 %
signs of an impressive growth ahead.
0.0% 0.0%
50 0
0 0.0 %
6,0 00 10 %
0.6%
1,2 00 0.7 %
5,0 00 0.6 %
1,0 00
0.5% 0.5 %
4,0 00
80 0
0.4% 0.4 %
3,0 00
60 0
0.2% 0.3 %
2,0 00
0.2%
2%
40 0
2% 2% 2% 0.2 %
1,0 00
20 0
0.1 %
2%
0 0%
0 0.0 %
2008-09 2009-10 2010-11 2011-12 2012-13 (Q2) 2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)
3,5 00
3,0 00
1.0 %
2,5 00
2,0 00
0.5%
0.4% With Mining activities slowing down Volvo trucks sales have come down
0.6 %
0.4%
1,5 00
1,0 00
0.4 % drastically.
0.2 %
50 0
Volvo has launched 10X4 tipper for off road application with price tag of more than 1 crore INR
Product Highlights:
During the IAA 2012-Hannover, all leading players has focused on New Emission standard and fuel efficiency trucks with latest technology
VECV plans to invest about Rs 2,500 crore by 2013 as part of the Swedish automobile company's push to make India a global development and manufacturing hub.
Scania is going to launch first Tractor product range and luxury Buses, Full report is available Scania Strategically player in India
Daf is also ready to enter Indian market, 25t, 6X4 Tipper is under trial now in Tamil Nadu
Strengths Weaknesses
Daimler is recognised as one of the top premium brands (alongside Daimler launched new Product brand BharatBenz
Volvo, MAN) Limited Dealer and Service networks
Daimler seem as having well designed, reliable products Yet to see the product performance
Daimler can justify a price level in the market Local components use which will take some time to prove its life
Good brand awareness by launching products High maintenance cost
Daimler has vast global experienced Team with good HRD.
Daimler is focussed on Trucks & Buses in India
Opportunities Threats
Bharat Benz is set to compete against Ashok Leyland and Tata motors Daimlers price level is close to Tata and Ashok Leyland, but this
in mass market segment segment is known for loyal customers of Ashok Leyland and Tata
Improved sales in last two months before starting commercial sales There is no Cowl & Chassis product offering
Introduction of EIV norms in 2016
Re -Sale value and TCO calculation will take some time
Proper IT systems that grow knowledge of key customer operations and
UD, MAN would have similar quality product like BB
their knowledge of offering
Spare parts availability and price
Price
3
BB target segment strategy 1 2 3
Moderate
customers
ACG target segment analysis 3 1 2
Semi Moderate
2 customers Moderate Traditional customers Semi Moderate
Trend customers
customers
1
Traditional customers
Volume
BharatBenz is targeting Tata Motors and Ashok Leyland customer segment in which most of the customers are loyal.
ACG analyzed that the customers of MAN, AMW, Hino, Mahindra Navistar are more open and flexible to accept new brand and therefore this
segment will be immediately affected.
High
Low
Note: Height of bar shows the importance of that parameter in its segment
High
Low
LCV M&HCV
LCV M&HCV LCV M&HCV LCV M&HCV
Ashok Leyland is heading most of purchasing parameter in LCV and M&HCV segment, need to maintain its position
Price
Niche segment
2011 2020
Modern segment
Mass market
Insurance Advantages
Aim to became Market leader in India- Target sales in 2013 is 10,000 units
Strategy: Global player but act like Domestic player
By investing in India, Daimler want to take two digit market share, DICV also want to have a cost effective procurement
Cost effective procurement Largest and fastest growing market Production hub for Mid market segment
Product Advantages
Insurance
Mileage indicator
BharatBenz is giving all services under one roof like own Finance, Cash less insurance, AMC etc
4941K
4928
2528
3123
Haulage
Traction
3128 2523
Long
4923
2523
Budget 1214
1217
2523 3123
2418 914
3118
1212 2516 4923
Ecomet 1212
Ecomet 1012
2516
Trend
2528
Price (INR)
6X4
2523
All tippers are launched on attractive price, direct
~ 33 to 34 competition to Ashok Leyland & Tata Motors
8X4 products
1217 ~ 25 to 26
6X4
~ 12lacs
4X2
108
28
Reception counter
2014
2012
35 33% 35 %
30
28% 30 %
27%
25 25 %
20 20 %
15
13% 15 %
10 10 %
5 5%
0 0%
North-region is the biggest market in India for trucks , BharatBenz is having maximum dealer penetration in North followed by then South.
Punjab 2
1
Delhi Kerala
6
Gujarat 5
4 MP
Orissa
Chhattisgarh
38%
13 0 52 %
12 8
51 %
12 6
50 %
12 4
52%
49 %
12 2
48 %
12 0
48% 47 %
11 8
11 6 46 %
August Sales for BharatBenz was 155, went up to 250 by September marking a 38% growth
In September 12 ;Tippers constitutes 52% with 129 sold units while the Rigid Haulage been sold 121 units fulfills the rest 48%
Percentage sales
Sept Sales
BharatBenz had sold 128 units in 25t segment which is the biggest segment(M&HCV) in India
31 ton is one of the fast growing segment in India and BharatBenz has launched both 8X4 Tipper and 8X2 Rigid Haulage in the segment.
They managed to sell 92 units in September which seems to be impressive .
For September, 2523T has been the most sold model with 79 units, followed by 3123T with 50 units
Taiwan
2004 2005 2006 2007 2008 2009 2010 2011 2012 (E) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
Source: ACG
Major players
Scania P410
P1 to P2 Million
+ 2%
P1 to P2 Million
+ 2%
P1 to P2 Million
+ 5% 31.280 MAN 18 cu.m Raex body
P1 to P2 Million
Price Strategy + ?% 31.280 MAN 18 cu.m box body
AMW 2518
P1 to P2 Million
+ 2%
Ashok Leyland U3123
P1 to P2 Million
Note: Final price depends on number of units sold, package and negotiation skills
2013 2012
ACE EX BS3
ACE SUPER BS3 AW
2013 2012
207/31 CC PS BS3 AW
ACE EX BS3
ACE SUPER BS3 AW
GVW 25t, 180hp, 14cum box body,Eaton 6 speed heavy duty gear box
GVW 25t, 160hp,6X2, Eaton 6 speed, with AC, Cab & Chassis
GVW 35.2t, 180hp,4X2,Eaton 6 speed with 2nd fifth wheel, with ABS
GVW 40.2t, 180hp,4X2,Eaton 6 speed with 2nd fifth wheel, with ABS
GVW 40.2t, 180hp,4X2, Eaton 9 speed with 2nd fifth wheel, with ABS 2013 2012 2011
1616il/2_210_WB_H_SERIES_6ETI 3K_Chassis
1616il/1_185_WB_H_SERIES_6ETI 3K
1616il/1_185_WB_H_RIG_CHASSIS_SERIES_6ETI 3K
2516H3/4C_6X4_198_H Series_WITH_DAY_CAB_RMC_CHS
2516iL/1_6X4_193_6ETI 3K_10.00x20_Day_Cab_Ply
2516XL_6X2_260_6ETI_10.00x20_Ply
2516il_6X2_193_6ETI 3K_WITH_SL_CAB_10.00x20_Ply
2516il_6X2_193_6ETI 3K_10.00x20_ply
Haulage Tipper
GVW 16T
GVW 25,31T
HD Haulage
Including tractor Terra 16/25T
LCV Haulage
40,000 INR
6 Speed 9 Speed
4018TR
6 Speed 9 Speed
Non AC AC
2518HL
Cowl Cabin
6 Speed 9 Speed
2518TP
6 Speed 9 Speed
3118HL
LCV BSIV
Haulage 10.50, WB 2,750 BSIII
Cab Chassis
10.59XP, 3350mm CAB & CHASSIS XP 14ft, BSIII CAB & HIGH SIDE DECK XP 14ft, BSIII
Cab Chassis
10.80XP, 2815mm CAB & CHASSIS WITH PTO AND AB CAB & CHASSIS WITH PTO, AB & PS
Price difference
Change interval
Lubricants Rep Qty/ Vehicle Cost / lit
- Engine oil replacement interval every 1000 Hrs, unlike in other models where the (In Hrs)
replacement interval is every 500 Hrs.
Engine Oil 26 220 1,000
-Advantage Bharat Benz: Consumes only 50 % of Oils and consumables Gear Box oil 13 223 2,000
for the given running hours as compared to other models. Rear Axle oil 14 250 2,000
Coolant 15 390 4,000
- Prices of Oils and Filters on Par with the competition. 4 240 4,000
Power steering
- Based on the normal Industrial practice.
Clutch fluid 0.4 300 1000
- Rear Axle oil replacement taken for only one Axle.
Cab tilt oil 0 240 4,000
Hydraulic Oil 55 230 4,000
Profit Sales
Example: Volvo Trucks has changes its position from fig 1 to fig
Acceptance
Consolidation into large fleets to increase scale advantage and purchasing power
Outsourcing of in-house transport capacities and logistical functions
Large, professional fleet operators benefit from privatization of public transportation (e.g., waste
management)
Source: ACG
> 25
Large fleet operators
Professional buyers through their purchasing
department
Rich experience in market offering and purchasing 11-25
Fleet size
High buyer power
Vehicle is Vehicle is
a tool the tool
Vehicle usage
Vehicle is a tool
Trucks means just material transport
Trucks performance does not matter
Source: ACG
I There are many traditional owner drivers in India. They want immediate
return and good Re-Sale value for their vehicles.
Owner operator 1-2
Brands are not very important for them generally they go with traditional
Brands. It is very price sensitive segment
II Normally it runs on sub contract. Financial they are not very strong.
TCO and brand value does not consider important while purchasing
Small fleet operator 3 - 10
vehicle. Re sale value , Initial cost and maintenance cost are important for
them.
III They are brand conscious and consider TCO also. It is easy for
Medium fleet them to get finance because they have some free vehicle which
11 - 25
operator allow them to earn some profit.
Source: ACG
High
Low
Maintenance cost
Brand value Authorized service network Spare parts
High
Source: ACG
Low
Segment overview
Source: ACG
Based on ACG forecast module
By giving equivalent or more power to 12T truck can perform like 16T truck but at the less price and better operating cost
Chassis body option can give option to customers either to use as a Haulage or Tipper
12T and 9T product can enter in city during day time, this is also one of the advantage
India is still price sensitive market, There should be balance between price increase and number of features
Indian Truck market is going to be changed but in slow pace. For mass market application still it will take time to accept new technology by customers. However few
Segment like mining and special application are already clicked in India.
It is very important to understand that each application is having specific and some time limited technology requirement. Customers are not ready to pay more if ratio
Of technology and price do not come in economical mode.
In last few years, Indian OEM like Tata, Ashok Leyland, Eicher has put good efforts to improve its technology but still it look that long way is there to come with European
Technology. Due to market dynamics favors, After sales and loyalty is helping them. Till date none of the Indian OEM is successful as per their expectation that they can
competitive European products.
Autobei Consulting Group - ACG is a management consulting group which has leveraged on its expertise and proprietary databases to provide "Customized Solutions" in
areas such Sales Analysis, Business Planning, Market assessment and Project Feasibility on Global Automotive Industry. We are capable of providing exclusively
State wise, segment data like Tipper, Tractor and Haulage, Passenger vehicles. Two wheeler. With a strong network for primary data procurement, we can get any tailor
made research reports ready within a short interval of time. ACG also serve as a web-platform where one can find all the required information regarding Passenger
vehicles, Commercial vehicle, two wheelers etc across the globe. We provide a Global Platform for Truck and Bus Manufacturers, Dealers, Vendors and Fleet Owners to
come together and gather required information within seconds without jumping websites.
Declaration:
This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the
exercise of professional judgment. Neither ACG nor any other member of the organization can accept any responsibility for loss occasioned to any person acting or
refraining from action as a result of any material in this publication.