The Indian (2W) industry enrolled sales in volumes of ~ 15.1 million units in 2020-21, which was a degrowth of 13% over the earlier year FY 2019-20. The 13% degrowth recorded by the 2W business is comparatively less to the growth expected that enlisted some time ago.

Buying behavior Analysis:

Indian Two Wheeler Export and OEM wise OEM Market Share:

Buying behavior Analysis:

The Scooter segment has demonstrated a 20% degrowth, though Motorcycles have demonstrated 11% degrowth this year.

The Indian and foreign 2W organizations concentrate more on exports, particularly from India, the Asia Pacific (Vietnam, Thailand, Indonesia, the Middle East and Latin America, and so forth), and African nations where the 2W business sector is exhibiting colossal potential. Piaggio has as of late dispatched its Vespa model and plans to fare its units from India. Then again, Mahindra needs to resuscitate its brand position, product value, and in particular, its Brand Image in the present business sector.

Entry, Executive, and Premium Segment segment share is changing every year.

Two Wheeler market is too dynamic. Customers are shifting from one parameter to another one frequently and choose a product that gives some value.

Report Highlights

• Indian Automobile Industry overview
• Two Wheeler Industry Analysis
• Segment Analysis
• Pricing Strategy
• Customer behavior
• Product portfolio analysis
• Brand Strategy
• Market Drivers – Segment wise
• Historical & Future Trend Analysis
• Competitive Landscape
• Macro Economics Analysis & Industry
• Company Business Reviews

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BharatBenz Truck Strategy Analysis report is exclusive detail report. This is the newest product and corporate addition among the Daimler group. It has noted a excellent growth in sale of Medium and Heavy duty trucks after it’s launch. Daimler has introduced this brand especially for the truck segment for Indian and other emerging countries. This analysis gives a detailed descriptive intelligence analysis on the Truck Model wise sales, State wise sales analysis, Truck Segment wise sales, Product position, Pricing strategy analysis & Trend, Production & branding Strategy, Network analysis, Market share of BharatBenz.

It was assumed that Daimler only wanted to target the niche segment when they introduced their premium model, Actros into the Indian Truck market. Another major player in this department was Scania, a global player created by MAN for the new budget segment. India’s vast market is dictated by the budget segment and Daimler has rightly realised this potential for incredible growth. Indian market could very well be the biggest market for this group if they pool in their resources wisely, and their main challenge would be to balance the scales of their brand image with indian prices and position. It is very important to have the right product position with balance and market dynamics at BharatBenz.

The company has seen tremendous growth over the years. 2013 registered a whopping 73% increase in sales as compared to the last year, and 2014 saw a 172% incredible increase in sales from the previous year. The sales figure every year prove beyond doubt the giant lies that BharatBenz has thrust forward to achieve more number of sales in India, with their impressive product portfolio.

The Rigid Haulage truck segment of DICV has seen a steady growth in the transition from 2013 to 2014. The Tipper on the other hand has noted a considerable de growth of 40% in sales and has dipped extensively over the same year. Tractor or loang Haulage sales on the other hand have seen a impressive 96% increase leaving everyone mouth-gaping.

The two most targeted and significant regions for truck sales in India have been the southern and western regions. Bharat Benz has targeted the South region and have managed to capture 48% sales in this region. It’s incredible success in this region could be attributed to the major fleet owners and decision makers who inhabit this region. This region is also characterized by its flexibility, both in the South and West. People in the North and East regions have been observed to have an open mind towards new brands. The company gained 2% sales in the south and the East, lost another 2% in the West and north.

The 16T truck was not launched initially by the company. Only the 12T was available powered by its 70hp engine and it’s payload and application suitability. After the 16T was introduced due to market, dealer and customer demand, sales saw a hike. Kerala and Goa are two major regions of development for this segment.

State wise sales trend showed that BharatBenz has made a strong foothold in Maharashtra. TamilNadu, Karnataka. Regions of South India, Punjab – Haulage market have also shown a positive, impressive growth due to the attractive multi axle tipper market.

Initially, the company targeted it’s truck sales only in certain states and regions to ensure proper sales-service. The plan to capture market share has been a goal for the company who have reached there though division of regions zone wise and step wise. Jharkhand, a potential market could be next to capture the market with it’s off road tipper. After networking the Dealers in India, the company has also launched its Tractor. Products like the Tipper and LCV were introduced during the beginning of sales as the run in a limited span. The company approached sales wisely with the goal of efficient, quick service.

Daimler has used effective entry strategy into the the Indian Market segment and Product segment. The Company has been seen with such enthusiasm that the BharatBenz truck segment is extending onto the Bus project for budget segment. It’s product positioning and value proposition made it popular and welcoming entry into the Indian commercial vehicle market. Also,DICV started export in a short period of time to neighbouring countries.

Its target customers are the medium & large fleet owners in South India which then extended into West India, North and West India region. South and East India are largest markets for truck Industry.

The heavy duty segment is characterized by it’s flagship products, 3123 and 2523. LCV has it’s flagship products as 1214 and 1217. Sales of Tipper have dipped by 16% whereas the 12T segment sales have shooted by 1%. Recently launched products like the 4023 and 4928 have also registered impressive growth.

Pricing Strategy:

BharatBenz has launched it’s products at a very competitive price. They are a bit higher than those of traditional players like Tata, Ashok Leyland. Their strategy is to give products with additional features at the market price. Discounts are not offered by the company, which has been bombarded by complaints and unhappy customers in the Indian market.

The Company has increased the prices of all it’s products launched between 2012 to 2015 by 1 to 2 Lakhs (2.000 to 4.000 Euro).

The most sellable trucks like 2523 (Tipper), 1214B and 1217 have seen  a 2 lakh increase in price(4.000 Euro) and sales of other products which needed to take some time to establish  were increased by 1 lakh(2.000 Euro).

Dealer Strategy:

The BharatBenz dealer showcases their impressive infrastructure and cleverly planned campus with all facilities made available including driver space just like any other car showroom. There was a time when such a rich dealer network was provided by Mahindra Truck and Bus.

Media Strategy:

At BharatBenz, they strategized by giving proper awareness of it’s product through Industry Magazines, newspapers, blogs, Digital plate form etc before launching the vehicle into the market. They did not focus too much on popularity through advertisements, and this decision had a positive impact on potential buyers.

Brand Strategy:

Daimler has launched a new brand in India. It gives a clear message to the market that this is an Indian brand but characterized by Benz quality and standard. It’s new logo successfully differs from the Mercedez Benz one.  Their campaign and indirect marketing were successful in creating an effective brand image. However some of the Western media criticize this concept to introduce budget truck.

It give preference to public relations rather than paid advertising & promotion. The vendors follow a very unique strategy where DICV signs an agreement with them vendors which is very helpful for its dealers.

The post BharatBenz Truck Strategy Analysis appeared first on Autobei Consulting Group.

In the SCV segment, which is the largest in the industry sales have seen a minor drop in the period. The HCV segment, on the other hand, has seen a slight increase in the sales. LCVs and MCVs are two segments which are characterized by very low sales figures and they have remained fairly constant in the two years.

In the M&HCV segment, we have compared the sales of individual companies in the transition between 2013 and 2014. Tata Motors being a pioneer of this area has seen a flourishing sales figure which has increased during this period. Ashok Leyland, being a close runner up has also witnessed a slight increase in the same over the year. VECVs-Eicher though having meager sales still has seen a fairly constant trend with respect to sales.

M&HCV Segment:

Production:

Production wise, Tata motors stand out again as the dictators of this department. Their production figures have almost remained the same in the transition between 2013 and 2014 as is clearly visible from the graph above. Ashok Leyland, the runner-up of the segment has seen a microscopic increase from 2013 to 2014. Other companies like mahindra& Mahindra, SML Isuzu barely have any production figures to make a mark.

Export: 

The exports are mainly dictated by three companies, namely Tata motors, Ashok Leyland and VECVs-Eicher. Among the three companies, Tata Motors has shown the biggest growth in terms of a number of units exported, with almost a stunning 40% growth. Ashok Leyland and VECVs-Eicher have also seen an escalation in their exports by meager amounts.

LCV Segment:

The LCV segment in the truck industry was being ruled by Tata in the year 2013. In the subsequent year, this, however, was not the case as sales in the company went down by almost 50% keeping this company at par with Mahindra &mahindra, who are the pioneers of this segment. Ashok Leyland also owns a small share of sales, while going down by a depressing 30% of sales. Companies like Force and SML Isuzu on another hand, barely make their mark on the radar.

Production:

Production wise also saw Tata at the crown in the year 2013. However, at the onset of 2014, these figures dropped by a staggering 40%. Mahindra & Mahindra have a constant sales graph with 2013 and 2014 and are now at par with a production of Tata in the year 2014. Isuzu and Ashok are also minutely visible in the industry. Though Piaggio and Force, Motors are barely even there.

Export:

Export-wise, however, did not see much of a decline in Tata Motors which plummeted down by a very minute amount. Hence the difference must have been seen in domestic sales. Mahindra has also seen a small decrease in export figures. VECVs-Eicher has managed to maintain a constant export figure throughout. Piaggio also falls under the same category.

Small Truck: 

Sales of small trucks have upped by 6 % in the 2 tons segment and by around 14% in the 3.5-ton segment.

Light Duty Truck:

These light duty trucks have been further categorized into : 3.5 to 6tons and 6.1 to 7.5 tons. The 3.5 to 6 to the segment has reduced to a mere 64% in 2014 from a brilliant 70% just the previous year. On the other hand, the 6.1 to 7-ton segment increased its market share by 6%.

Medium Duty Truck:

The medium duty truck segment has been divided into two, namely the 7.5 to 10 ten segments and the 10 to 14-ton segment. The 7.5 segment took a hike from 29 to 31% over the period from 2013 to 2014. Parallelly, 10 to 14-ton segment has taken a hit from 71% to 69% over the same time.

Rigid Haulage and Tractor segment:

One very alarming finding that we stumbled on is the stark difference between the 2013 and 2014 sales of rigid haulage and tractor. Both rigid haulage and the tractor segment have dropped by an exorbitant 90%.

Rigid haulage:

The market share is divided over 3 categories in the rigid haulage segment. The 16.2 ton, the 25 ton and the 31-ton segments. The 16.2-ton segment saw a 4% reduction in market share from 2013 to 2014. The 25-ton segment has maintained a constant 25% over the sale period. Finally, the 31-ton segment has seen a 4% hike to reach 33% of the market in 2014.

Tractor Segment:

The tractor segment is also categorized into three for ease of analysis of market share. The 35-ton category has dropped its market share from 33% to 27% from 2013 to 2014. The 40 to 49-ton category has seen a 5% increase to reach 69% in the sale time. Last but not the least, the >49 tons seem to be constant in their market share at 4.7%.

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