Mahindra Commercial Vehicle Report detail analysis of its Commercial Vehicle segment. ACG team had a detail discussion with MD & CEO of Mahindra Truck & Bus vertical in 2012 at company Pune office. Unfortunalyly the vision and plan of that time company projected did not align with current situation.
Mahindra Truck and Bus is the part of Mahindra Group. Mahindra claims to provide the complete trucking solution to the customers.Mahindra started its operation in India with Navistar. The company was provided with the technology support from Navistar during Mahindra Navistar JV.
In the current market target company is struggling to keep up with the race with other competing companies. In the M & HCV Truck category, the company failed to achieve not more than 2.6 percent market share even after almost 7 years of its operation. In LCV category, the company performance is currently at a satisfactory level but it totally depends on only a few successful model’s performance.
The total outlook and the market set-up of the company SUV outlook changed once Maruti entered into this segment. It would be the situation for LCV segment once other players will enter with their strong portfolio. It would be difficult for a company to keep its market share in LCV segment until the worth and mettle of the company is proved to the customers. The company was still gasping for new life and struggling in two-Wheeler category, construction, and passenger vehicle business category.
The Mahindra group is having a thick dealer network throughout the country and after sales or product support was supposed to be the backbone for the firm, but the company could not take advantages of its Commercial Vehicle Business.
Tactic for Product Branding:
The caption for the brand was “OK is no longer OK” during the starting phase. During the establishment phase, the nomenclature of the product was with the combination of Mahindra and Navistar combined. Mahindra’s products (Mahindra and Navistar) and its product name and product segment for example: MN 31 is just like other Truck OMEs which gives the basic product name by model name structure.
The company decided to rename its products like Torro or Traco and also to change the product view after the split of the partnership of this JV. The company wanted to change its product perception again post rebranding and company decided to change its product name from Torro or Traco to Blazo.
Mahindra also introduced new axle configuration 8X2 tipper in the market for the construction segment but it also did not work out as per the expectation. There was a considerable gap between the launching of product in the market and announcement of launching this product which harmed the product sale in the market. Of late company has decided to enter into the Medium Commercial vehicle market and is expecting some good trade of products and rise of brand value along with this.
There are some product USP need to communicate to prospective fleet owners in a effective manner.
Promotion:
The introduction of the 360-degree campaign supported the sales team in the promotion of products which are covered in different segments through the electronic media, print, digital and Off-line activities.
The Companies like VECV or BharatBenz performance is far better compared to Mahindra. In commercial vehicle Industry, celebrities cannot increase the market share of the product. Celebrities like Ajay Devgan or other methods like increasing number of Facebook likes in social media sites cannot influence the truck and bus sale in the market. The purchase patterns are different for commercial vehicle compared to the private vehicle category. Normally there is no good ROI of such investments.
In its TVC promotion, they try to connect its truck and bus segment with its SUV/MUV vehicle segments. However, there is not an effective reflection in its sales figure. Mahindra Truck & Bus almost participated in the entire exhibitions to create its awareness among the consumers and also as a medium for product advertisement. Transport excellence award is also introduced by the company to attract large fleet owners and company has also made a tie-up with Zee News. Even with all the effort and strategies, the company could not infiltrate into the mass market.
The company also introduced to offer plant and factory visits to strategic customers and also provided the customers with discount and gifts as a mode to increase sale rate in the market.
Organization Changes:
Some major organization changes were initiated by the Company and company also inducted people of top executive position from one of the competitor company. The impact of these organization changes will need to be seen the near future.
Dealer Network:
Most of the dealers across the country have already become Daimler India dealers. Few dealers left other stressed AMW firms and now part of Mahindra Dealers.
For TCO Analysis based on model and application, the large fleet owners and financiers, kindly feel free to contact us at Info@autobei.com.
Exclusive Database of Mahindra Truck and Bus Model wise Sales and Production data Trend and Outlook 2023 with Detail of Product platform, Engine Information, Patent and Design Information is also available.
Report highlights:
- Mahindra Company Overview
- Mahindra Truck and Bus Company overview
- Company SWOT Analysis
- Mahindra Vs Industry Performance
- Indian Truck Industry Analysis and Market Drivers
- Model-wise Sales and Production Analysis and forecast 2023
- Tipper, Tractor and Rigid Haulage Product Analysis
- Product life cycle
- Product Position
- Mahindra Product Planning
- Key Specs and product Features
- Application Suitability – Mileage, TCO Analysis of every model
- Brand Perception and Position
- Suitable for Application
- Model level Pricing Strategy
- Segment Analysis
- Dealer Network
- Spare parts price and comparison of competitor
- Customer Segment
- Gap Analysis
- ACG recommendation
Customise report is also available on request!
