Indian Light and Medium Duty Truck segment are one of the most important segment in Indian Commercial Vehicle. One time new players like to start their journey from Heavy Duty Truck Segment. AMW, Mahindra (Mahindra Navistar) Mercedes Benz, Scania, MAN (MAN FORCE) has first entered into the heavy truck segment.

Due to market demand, Bigger segment size, Profitability and purchase behavior, it was tradition to start sales in the heavy segment. It was believed that only strategically customers (Big fleet owners) ready to buy the new brand, pay more and on the other hand OEM thought that their product fits better in heavy category in an Indian market. This tradition has been changed when BharatBenz entered into the Indian market, their product portfolio also having space for Medium Commercial Vehicle. Its major sale is coming from 9 and 12T segment. ACG has released Part 1 report in January 2012 on "BharatBenz- The Game Changer version 1.0" now we have released its second edition "BharatBenz  Game Changer Analysis version 1.1- India" which is extension of report with BharatBenz Product Feedback and its current analysis with pricing strategy, product position, competitor analysis, Forecast and other important parameters.  In a Heavy truck segment, BharatBenz already became the third largest Heavy Truck manufacturer in Q4 FY 2013-14 in India.

To be successful in an Indian market, it is important to understand State wise market dynamics of Truck and Bus. With the case study of Kerala Market analysis, we explained how dealer plays important role to increase sales and tab new market segment.

The size of the Light and Medium truck segment is around 77,000 units in 2013 at and will touch more than 100,000 units by 2018. LMD truck Industry registered 19% de-growth in 2013 and negative market sentiments increase its de-growth around 24% by YTD September 2014. Kerala, Tamil Nadu, Karnataka and Uttar Pradesh are other top four markets in this segment. ACG has done state wise Research on Heavy, Light, and Medium duty truck segment. In sales volume, Maharashtra is the biggest state for L&MDT. Zone wise (Region wise), South India is the biggest region.

In 2013, only West Bengal has shown positive growth compare to 2012. All other states registered negative growth. The highest de-growth registered by Tami Nadu state. We are giving the case study of Kerala Market. By this case study, it is easy to understand that why state wise sales and Product strategy can help you to be Leading player in Truck & Bus segment.

Maharastra, Kerala, Tamilnadu, Karnataka, Uttar Pradesh, Andhra Pradesh, West Bengal, Gujarat, Haryana, Delhi and Madhya Pradesh are top states in terms of sales volumes. Every state is having some favorable market dynamics for LMD segment. ACG has done in-depth research on every dynamics which are available on request.

West Bengal and Haryana truck market are one of the key states. Slowly market is improving and we will see some good sales growth by 2015.

India is normally divided into four business zone- North, South, East, and West region. South and West region are the major regions which cover around 50% sales together like we have seen the similar pattern in Heavy duty truck.

Maharashtra is leading states in 5,7 and 12T segment. Kerala is leading states in the 9T segment.

Case study Kerala Truck Market: 9T to 49T GVW

9T, 16T has lost some market share, 12T gained around 14%, 25T, 31T almost flat in Q2 – 2013 compare to Q1- 2013

Eicher lost to market leader position in Q2 2013. Excellent performance by BharatBenz, Tata Motors, Ashok Leyland, Mahindra, and BharatBenz were gainers. MAN sales like flat, AMW, SML Isuzu lost their market share.

In 9T segment, Eicher was the market leader but it lost 9% market share in Q2 2013. In 9T also, BharatBenz gained 6% market share by having the suitable strategy and its product position.

In the 12T segment, BharatBenz with 1214 gained capture 32% market share from 19% due to better-operating economy its Kerala Dealer "Autobahn Trucking".

In 16T Rigid Haulage segment, Ashok Leyland was the market leader with 37% but it was replaced by Tata Motors in Q2 2013.

All players in 16T – Tipper segment including Tata Motors sales decrease but its market share has increased in Q2 2013. Eicher gained 2% MAN and Ashok Leyland lost their market share.

In 25T Rigid Haulage segment, Ashok Leyland is strong in pan India and it is the market leader in Kerala with 39% market share in Q2 2013.

Mahindra Truck and Bus, BharatBenz and Tata Motors are major players in this segment.

In 31T Rigid Haulage, BharatBenz has done the excellent performance with market leader position in Q2 and Q3 2013. Ashok Leyland and Tata Motors also gained market share.

31T, Tipper segment is not an attractive segment for Kerala states due to its geography, Infrastructure and logistics practice. In Q2 2013, Ashok Leyland, Mahindra, and AMW also started to show some sales figure in this segment.

Ashok Leyland "BOSS" product case study: As on at the time of launching

Ashok Leyland BOSS and BharatBenz 914 1214 comparison

– Ashok Leyland has launched new product BOSS in Medium duty segment to make its presence effective in this segment

– The main competitor of BOSS is BharatBenz 914 and 1214, First focus state was Kerala.

– Eicher who is having the strong hold in Kerala market recently launched its new series trucks in this segment.

Ashok Leyland Sales kit: Dealer Feedback:

As claimed by Ashok Leyland dealer during our survey at the time of BOSS launching

  • Boss has an advantage of maintenance cost.
  • Corrosion & rust free polymer fuel tank
  • Parabolic type Shocks which absolutely no shaking while driving
  • Electronic fuel pump for BharatBenz can get damaged against impurities in Diesel, whose maintenance cost will be additional.

– Ashok Leyland has launched new product BOSS in Medium duty segment to make its presence more effective and see some trend in overall sales.

Road Projects:

Government department decided to review section-wise the status of the roads, the progress report of the ongoing works, and the urgent works to be taken up in all districts. The review meetings were held in Ernakulam recently.

The damages to the roads due to monsoon had been estimated at over Rs.300 crore. The government had allocated Rs.145 crore to speed up road repairs. The government signed pact with World Bank for $216 million loans for Kerala State Transport Project to improve road conditions and safety in the state.

A Rs.10,000-crore project for the development of 22 roads, including the hill highway, in the State, to resolve traffic issues.

Briefing media persons after the Cabinet, Chief Minister Oommen Chandy said the Kerala Road Fund Board under the Public Works Department would take loans from funding agencies to develop the stretches on annuity scheme with the government giving the guarantee. No toll would be collected on these stretches, he said.

Cochin Port:

Cochin port

 

 

 

 

-Cochin Port is the only major port in Kerala. It spreads over 827 hectares. It has a water frontage of 7.5 Km. The port has connectivity to hinterland through NH 47, NH 17 and NH 49. Rail links to the Konkan and Southern Railway also give key rail access to its hinterland. During the year foreign cargo traffic increased by 14 % to 122.19 lakhs tons from 107.58 lakhs tons in the preceding year. During the year 2011-12, 1386 ships called at the Port as against 1256 ships in the preceding year registering an increase of 10% in shipping activity.

– With two projects worth over Rs 5,500 crore projects under bidding in the public-private-partnership (PPP) model in the ports.

– The Kerala projects represent a share of 40% in value terms. While two projects worth over Rs 6,200 crore is under as per Port Developments in India report.

Modernization of coal handling in Port

– Cochin Port has been handling coal since its inception at the North Coal Berth and South Coal berth on the Mattancherry Wharf.

– The report on the Master Plan for Redeveloping Willingdon Island has highlighted the great potential for coal handling in Cochin Port, especially in view of the fact that it is the major port lying nearest to the route to African coal.

– This berth could also be modified at minimal cost to handle 14.5 m draft fully loaded Panamax vessels.

– Cochin Port Trust is, therefore, initiating a new project for modernizing coal handling, and will develop a mechanized coal handling facility on 300 m berth of the Q8-Q9 berth in the PPP format. The project will have a stackyard of 17 ha.

– The berth also has a railway line. The project capacity will be around 5 MMTPA.

To buy Full report please contact to Nidhi.Singh@autobei.com

Source: Autobei (ACG) Databank

 

To read & Buy other Special report:

– State-Wise Indian Heavy Truck Sales Strategy – An Overview

7 Comments

Dinesh

Very Good Analysis!

Dinesh Chandra Upadhyay
General Manager
Hino Motors Sales India Pvt. Ltd

December 19, 2014 - 9:00 am Reply

Henrik

This is real Market Intelligence. Good Job!

Henrik Mueller
Market Analyst
Chrysler Motors

Detroit,USA

December 19, 2014 - 9:00 am Reply

Jagdish

BharatBenz certainly in a short time has been able to get sizable market share and most important the customer perception of being value for money product.

Jagdish Adlakha
Business Unit Head
Jamuna Auto

December 19, 2014 - 9:00 am Reply

M NAGALINGAM

Very good detail analysis!

M NAGALINGAM
Manager – BIW Engineering

December 19, 2014 - 9:00 am Reply

Ramesh

Ability to come out with detailed report is commendable.

Ramesh Ganesan
Chief Executive Officer (CEO)
Kapico Motors (I) Pvt Ltd

December 19, 2014 - 9:00 am Reply

R VENKATARAMANI

Useful highlight. Definite sound growth will be there in the coming years in India.

R VENKATARAMANI
CEO – YOGAM CARS
Chennai

December 19, 2014 - 9:00 am Reply

P P Deshmukh

Although the market survey strategy -state wise may be clear to lead the sale for the product.The buying habit of the customers must be kept in mind that they may be going with the line of fleet.hence,to maintain the new product the inventory,it carry cost.years ago the net works of Bharat Benz in India needs to consider and the product opinion or market feed back regarding the product counts lot.

How ever I’m confident that the 2015 will be the bet.

P P Deshmukh
Consultant – Export ( Sales)
SPS Automotive & Components,

December 19, 2014 - 9:00 am Reply

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