The recently conducted survey on PAN India level by Autobei Consulting Group (ACG) on truck industry had thrown lights into some interesting facts on the industry. We had covered all major applications of trucks in India like Mining, Logistic, Construction, Irrigation, over dimension cargo (ODC) etc. The survey had captured voices of Fleet owners, Dealers, Vendors and various Industry Professionals.

Survey has been dominated by stake holders of HCV segment, MCV, LCV & SCV segment follow after HCV.

However unfortunately, most of the buyers do not have plan to buy new trucks in 2014, possibly 2014 could be another slow year for Industry.


Customer who wants to buy new trucks vary on choices depending upon the type of truck and its application. In Tippers, Tata is still the first choice eventhough tough competition scenario is prevailing, Ashok Leyland is the first choice for Haulages and due to the engineering and technology MAN is the first choice for special applications.


Pricing used to be "the most" important criteria to buy trucks, is still one of the top criteria but now it draws much dependency on application of the truck. After sales support became number 2 in buying new vehicle. Technology, Environment friendly and safety still not a criteria.

Customer has rated Tata as the top after sales service provider. Ashok Leyland, Eicher, MAN & Volvo had also made it to the top 5.

We found some new trends in Industry. Most of the customers believe that BharatBenz can be one of the top brands if after sales support improves.

Other highlights of survey:

In our survey customer has also expressed segment wise top model and its reason to say top model. Segment has been defined in SCV, LCV, MCV & HCV segment. It is useful to make business plan or new product introduction or upgrade exiting brand, model in a competitor landscape. We also covered most popular brand, most effective advertising media so that OEM can make plan to penetrate their target segment in a most effective way.

Contact to Purchase Full Report – sales@autobei.com

16 Comments

M Ramachandran

A lot of efforts must have gone in to making a survey but few of the basics are either avoided or concealed. Moving goods and material from one place to another is an expensive affair with costs added to the product cost. Indian Transport Industry works almost similar to our farmers. When they see that the market for tomato or onion they all start production of these goods and end up throwing them on the road. Like the absence of a an advisory authority to farmers our Automobile Industry leaders only look at the numbers that they can sell. What is the return on the customer’s investment after a reasonable period time is dismal. They are like the “bumble bee” which according to its weight to wing span can not fly as per aeronautic theory. Since the bumble bee does not know the theory, it flies. People who use the road in India can see thousands of LCV, MCV’s parked at some important areas waiting for loads. And they even have queue system and at one place in Banglaore-India the average time taken to get a load is 3 to 4 days. One source told me that there are over 50,000 ten ton tipper trucks idling in Goa and Karnataka. When a demonstration of a 60 ton payload transportation of coffee seeds from the growers yard to closest sea port could be reduced to 72 hrs instead of a week, the spokes man said it will not of any help as the container will be stuck at the sea port waiting of an empty ship that goes up north of the world where the seeds are processed in to instant coffee. Time is no criteria for Indian Transporters or for that matter the customers. If a “packer and mover” take 17 days from Gurgaon to Bangalore, to transport house hold goods, the man is happy and boast boast they are the best in the country. I am sure the respondents are such people.
I also felt sad when they said “We found some new trends in Industry. Most of the customers believe that Bharat Benz can be one of the top brands if after sales support improves” “IF”…….does that mean it is very poor, poor, average, good?
“After Sales Support” (call it Service and Parts, Customer Support, Product Support) from a manufacturer or dealer is one important factor and many of our manufacturers,their dealers and their customers consider it as a “necessary evil”
India will have more trucks (all sorts of trucks and buses) standing idle at the owners or transporters premises than on the road transporting goods. Good luck.

March 25, 2014 - 7:29 am Reply

Chander Shekhar Sharma

Also finance is very important factor……about 20% customers are swinging customers who prefer buying or brands with attractive finance scheme.

Chander Shekhar Sharma
Senior Manager
Ashok Leyland

March 25, 2014 - 7:29 am Reply

Sheel

Dear Ramchandran,

You are right as far as Goa & Karnataka region is concerned.Higher percentage trucks are used here for Mining purpose.
Govt. has to initiate & start the Iron Ore mines at earliest.

March 25, 2014 - 7:29 am Reply

Sheel Mirji

Resale value & Diesel,Tyre prices is also important.Which are of recurring nature.Basically when we interacted with Tran porters they also say the Good/load is not readily available on routes,thus they are postponing their
purchases.

Sheel Mirji

Director, Manickbag Automobiles Pvt.Ltd.

March 25, 2014 - 7:29 am Reply

    M Ramachandran

    Ever heard of “life cycle cost” of a commercial vehicle? If not try and read it to understand what exactly most of our LCV/MCV/HCV customers do not understand or pretend not to understand.

    March 25, 2014 - 7:29 am Reply

V M Hombali

In the ultimate analysis it is the TCO (Total cost of ownership) of any asset that determines its competitiveness and choice by customers. TCO is a complex product of price of product (including cost of finance, re-sale price etc) cost of operations as also maintenance. Over a period of time customers assess these aspects and arrive at TCO. Merely tinkering with one factor or other will not make a difference. Also TCO for a product or vehicle model could be different for variety of customers based on his usage and application. Vehicle manufacturers and dealers have within them however to offer the best to the customers by customizing.

March 25, 2014 - 7:29 am Reply

Rajesh Kumar Agrawal

It is astonishing to note that MTB formerly MNAL has not find any place in the “Survey”, may be ignored owing to its numbers; BUT its presence must not be short sighted owing to its Change in Management and Future prospects.
The Survey reminds me of “Opinion Polls” conducted by various TV Channels presently and trying to project a “definite” picture.
The CV Customers are mostly diversified and scattered to a large extent (barring certain organized sectors & applications) results are bound to be varied from one place to another.

To generalize Price may be a factor but again if it comes to organized and educated customer, this factor can be supplemented with Operational Efficiency and Economics of the Product.
After Sales Service/Support is definitely a major factor influencing buying behavior.

The remark seems funny :-
“We found some new trends in Industry. Most of the customers believe that Bharat Benz can be one of the top brands if after sales support improves.”
However it has been misunderstood or miss-spelled the opinion;
May it be the opinion(Customers’) that Bharat Benz have the real potential to rise, provided Service Networks be established on PAN India basis. After Sales Support of BB cant be termed as Poor or Weak.
This is not the New Trend rather it is the prime requirement of the CV industry that after sales service be available on real time basis without any delay/doubt.
AND availability of Finance is another Major element which can change the whole scenario for any Brand or Product at the ground level.
Another major factor which can play a vital role in the growth is availability of Trained Drivers and it also cant be ignored at all.

March 25, 2014 - 7:29 am Reply

    Abhishek

    Dear Rajesh,

    I am from one of the major CV OE.Your comments are too funny. Survey does not mean that they have to make you happy or it is as per your wish. You just want to criticized the survey, ACG has taken the good initiative and doing good job for CV Industry. As per my knowledge they have expert from all over the world with more than 20 years experience from every corner for the world.

    I dont not know if you understood or just do not want to understand.

    Regards,
    Abhishek

    March 25, 2014 - 7:29 am Reply

      Rajesh Kumar Agrawal

      Dear Abhishek,

      Please don’t take my comments as Criticism, Surveys are based on studies at the ground level and depicts broad mood of the Market and are indicative of Customer Behavior and I have tried to point out what has been skipped/escaped attention;

      Also am an ardent follower of ACG and always wait for their write-ups.

      Regards,

      Rajesh K Agrawal

      March 25, 2014 - 7:29 am Reply

    padmakumar

    True

    March 25, 2014 - 7:29 am Reply

Kaustubhan srivathsan

Is there an emerging or future trend of drivers comfort (like in premium trucks) becoming an important buying factor in the non-premium segment gradually?

March 25, 2014 - 7:29 am Reply

    Rajesh Kumar Agrawal

    Drivers Comfort is going to become one of the major factor apart from COO(Cost of Ownership) and others since their voice/choice are going to play a major role in the time of Drivers crisis. At the same time it would be an important topic for ACG to study about the Market(Present & Emerging) vis a vis availability of Skilled Drivers, particularly for HCV category.

    March 25, 2014 - 7:29 am Reply

Sheel Mirji

We feel to add above even the Bank interest rates& Fright rate are also important !

Sheel Mirji
Director, Manickbag Automobiles Pvt.Ltd.

March 25, 2014 - 7:29 am Reply

Anupam Jha

A very useful info for the persons related to CV Industry. Request all concerned to share their view points and esperience of the trade with the changing scenario. To my understnding a normal sentiment to CV industry is being linked to Election results which they forsaee as new projects coming up and all are waiting for the same to make their purchase plans.

Rgds,
Anupam Jha

March 25, 2014 - 7:29 am Reply

padmakumar

the industry grow happens only after elections ,investors and customers are cautions about it

could have included small players like SML, Recently initiated Service tax is one more burden , haunting customers and dealers who are in this business.

March 25, 2014 - 7:29 am Reply

Shailesh

Truck market is also driven by one more important factor which is the COO, cost of ownership. It is the money which is required to maintain the vehicle including the maintenance cost, spares and consumables like coolant.

Shailesh Jagtap
Manager – Engineering at Mahindra Navistar Engines Pvt. Ltd

March 25, 2014 - 7:29 am Reply

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