Indian Truck Pricing Strategy Report

Overview of Truck Pricing:

The Indian Truck Pricing Strategy report is an exclusive, detailed report. We have maintained the data since 2008. Model-wise pricing data is crucial for all truck industry stakeholders because it provides sensitive analysis. Depending on the Model, the truck price increased between 30% and 50% on average.

We have covered different Drivetrain Truck technologies:

ICE Truck
Electric Truck
CNG Truck
LNGTruck

In our latest study, optimizing the price of Electric trucks can increase sales from 10 to 16%, and ICE and other fuel types can grow between 12 and 18%.

The brands need to understand the price broadly, not only the number of people who need to pay to get the Truck. Several factors need to be understood before deciding on the price. Willingness to pay is the key to pricing; competitor pricing benchmarking is used only for reference. In practice, it has been seen that competitor pricing is the only criterion for making the final call on pricing. Ultimately, the value OEMs give the customer is the key; there is no expensive or affordable truck at the point of fleet owners or logistics companies.

Every Truck Model differs from the others, even within the same brand. We have covered the following Truck Brands:

Tata Motors
Ashok Leyland
BharatBenz (Daimler India Commercial Vehicle)
Eicher Trucks
Volvo Trucks
Propel
IPLTech
Euler Motors
EKA
Scania
Montra
Maruti Suzuki
Mahindra Trucks
SML Isuzu
iBoard
Blue Energy

The variables that need to be considered are:

What is the application of the trucks?
What are the specifications and features?
Spare parts cost, including Wear & tear and availability
Mileage
AMC, if there are any, typically for the Tipper segment or specific applications like Ports
Buyers trust
Brand image and reputation
Suitability for Application or terrain
Resale price
Final Invoice Value or transaction price

Once all factors are considered appropriately, the price can be optimized effectively.

When Daimler (Mercedes-Benz—Actros Tipper) Trucks launched in India, their price was a bit higher than that of Volvo trucks, creating the perception that Daimler was more premium. Similarly, when the Bharatbenz Brand was launched, its price was slightly higher than Tata Motors because DICV wanted a premium Truck image compared to Tata and Ashok Leyland in the HDT segment.

Similarly, MAN launched its CLA range in India at a high price compared to Indian OEMs like Eicher, Tata Motors, and Ashok Leyland, but low compared to Volvo Trucks. MAN called this its Budget truck Strategy. However, Munich lost a lot on every MAN truck sale, and the MAN Munich cost centre absorbs this loss.

Every OME has a different pricing strategy.