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Sample Report, VECV

BharatBenz Strategy Analysis- India

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Summary

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Key Economy Indicators

August 12 2.7% 2% 2.9% 1.9% 4.0%

July 12 -0.2% -1.6% -0.4% 2.8% 0.6%

IIP Mining & Manufacturing Electricity Consumer durables


quarrying

Aug-12 IIP growth at 2.7% was somewhat higher than beaten down expectations , raising hope of a modest
revival in industrial production.

Mining, Manufacturing and consumer durable showed positive growth in Aug 12 compare July 12
Fleet owner Profit

Source: CSO

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Diesel prices & Inflation

Inflation
Diesel Price 51.6
WPI CPI-IW

18.2

Fleet owner profit

FY07 FY08 FY09 FY10 FY11 FY12 FY13


Jan/02 Jan/03 Jan/04 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09 Jan/10 Jan/11 Jan/12

* Diesel Price in Tamil nadu 2012

In last 10 year diesel prices has increased drastically that effect negatively on fleet owners profit and business

Inflation is continuously increasing which effect on spending power of consumer

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Diesel prices & Inflation

700 45 50
40
600 30
40 20
500 10
400 0
35 -10
300 -20
-30
200 -40
30 -50
100 FY 81- FY 83- FY 85- FY 86- FY 87- FY 91- FY 93- FY 97- FY 99- FY 00- FY 01- FY 08- FY 09-
83 85 86 87 91 93 97 99 00 01 08 09 12 (E)
0 25
CAGR, M&HCV % 23 -5 5 -10 14 -17 29 -31 41 -29 22 -37 25
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(E) CAGR, GDP % 7 5 4 4 6 3 7 5 7 4 8 5 6

Railway freight (Bn tonne Km) Railway Market Share % CAGR, M&HCV % CAGR, GDP %

Railway freight share decreasing and freight road is getting good


CAGR of M&HCV behavior as per country GDP
Market share

Source: ACG

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Competitors Overview
LCV up to 7.5t

60 0,00 0 35 %

31%
30%
30 %

50 0,00 0

25 %

40 0,00 0 21% LCV segment is showing significant growth.


20 %
Once Hub and Spoke model is fully implemented then
30 0,00 0
growth will be much more impressive in this segment
15 %

20 0,00 0
10%
10 %

Isuzu is now targeting this segment. Globally, Isuzu is a


successful player in this segment
10 0,00 0

5%

0 0%

2008-09 2009-10 2010-11 2011-12 2012-13 (E)

LCV (upto GVW 7.5t) Growth


E: estimate units

Source: ACG

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Competitors Analysis

14 0,00 0 34 %
20 0,00 0 67 %

66%
18 0,00 0
66% 66 %
12 0,00 0 33 %

16 0,00 0

33%
64%
65 %

10 0,00 0 32 %

14 0,00 0

64 %

32% 31%
12 0,00 0

80 ,000 31 %

10 0,00 0 63 %

62% 62% 60 ,000 31% 30 %

80 ,000

62 %

60 ,000

40 ,000 29 %

61 %

40 ,000
29%
20 ,000 28 %
60 %

20 ,000

0 59 %
0 27 %

2008-09 2009-10 2010-11 2011-12 2012-13 (Q2) 2008-09 2009-10 2010-11 2011-12 2012-13 (Q 2)

Sales units Market Share Sales units Market share

Source : ACG
18 ,000 8%

16 ,000
7% 7%

14 ,000
Segment Top performer
6%

Tata 407 is flagship product in this segment in the past decade, with around 80%
(6 - 7.5t) market share. BharatBenz will try to snatch this segment by its new
12 ,000

5%

product
10 ,000

4%

8,0 00

3%

Ashok Leyland Dost could be game changer in its segment


6,0 00

2%
2%

4,0 00

1%
2,0 00

0% 0% 0% 0%
Mahindra has lost market share by 2% in FY 2011-12
2008-09 2009-10 2010-11 2011-12 2012-13 (Q 2)

Sales units Market share


Direct competition with BharatBenz Competition with BharatBenz

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Competitors Analysis

7,0 00 2% 2,0 00 1%

2% 2%
1,8 00
1% 1%

6,0 00

2%
1,6 00
1% 1%

5,0 00
1%

1,4 00 1%

4,0 00
1% 1%

1,2 00 1%

1% 1%

1,0 00 1%

3,0 00
0.4%
1%

80 0 0.3% 0.3% 0%

1%
2,0 00

60 0 0%

0% 0% 0%

40 0 0%
1,0 00

0%

20 0 0%

0 0%

0 0%

2008-09 2009-10 2010-11 2011-12 2012-13 (Q 2)


2008-09 2009-10 2010-11 2011-12 2012-13 (Q 2)

Sales units Market share Sales units Market share

35 0 0.11% 0.1 2%

30 0
Mahindra Navistar has gained 2% market share but lost 1% in
FY 2011-12. Loadking is having 30-33% market share in South
0.1 0%

India.
25 0

0.10% 0.0 8%

20 0

0.05% 0.0 6%

15 0

0.04% SML Isuzu sales has increased in FY 2011-12 but there is no


10 0
0.03% 0.0 4%

impressive growth
0.0 2%

50

HM is struggling, not able to show its presence in fastest growing segment


0 0.0 0%

2008-09 2009-10 2010-11 2011-12 2012-13 (Q 2) Source : ACG

Sales units Market share

Direct competition with BharatBenz Competition with BharatBenz

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Competitors Overview
M&HCV (7.51 to > 49t)

35 0,00 0

27% 27% 40 %

30 0,00 0
8% 20 %

In first half of the year this segment showed 122% De -


0% Growth
25 0,00 0

-20 %

20 0,00 0

If Govt takes following initiative,


-40 %

-60 %

15 0,00 0

-80 %
To increase investments in construction,
10 0,00 0

-122% -10 0%

Controls Diesel prices, Inflation and Mining sector.


50 ,000

-12 0%
Then we will see some positive sign in this segment in
second half year of FY 2012-13
0 -14 0%

2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)

Sales units Growth rate

Source : ACG

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Competitors Overview

70 ,000 23 %
20 0,00 0 67 %

66%
18 0,00 0
66% 66 %

60 ,000
23 %

16 0,00 0
23% 22 %

64%
65 %

50 ,000
14 0,00 0
22 %

64 %

12 0,00 0
21 %

40 ,000

21%
10 0,00 0 63 %

62%
21 %

80 ,000
62% 62 %
30 ,000

20 %

60 ,000

61 %
20 ,000
20% 20% 20 %

40 ,000
20% 19 %

60 %

10 ,000
20 ,000

19 %

0 59 %

0 18 %

2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)


2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)
Sales units Market Share
Sales units Market Share

Source : ACG

Tata Motors and VECV registered positive growth since 2008-09

Tata motors sales have increased every year but market share is
fluctuating near 60

Ashok Leyland performance is impressive since 2008-09 except


in FY 2011-12

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Competitors Overview

12 ,000 10 % 60 0

512 0.4 0%

0.55% 0.3 5%

10 ,000 50 0

0.3 0%

40 0
8,0 00

0.2 5%

297
30 0 0.2 0%
6,0 00

3% 219 215
0.1 5%

4,0 00

2% 20 0

2% 2% 0.15% 85 0.1 0%

2,0 00
2% 10 0

0.11% 0.11% 0.0 5%

0.03%
0 0.0 0%
0 0%

2008-09 2009-10 2010-11 2011-12 2012-13 (Q2) 2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)

Sales units Market Share Sales units Market Share

Source : ACG
4,0 00 1.4 %

3,5 00
1.2% Positive sales of AMW specially in 25t till 2011-12, tipper segment
1.2 %

1.0%
3,0 00

1.0 %

2,5 00

0.8 %
Mahindra Navistar is still struggling to show its presence,
2,0 00
however it has registered increase in market share from 0.3 to 1.2%.
0.6 %

1,5 00

0.3% 0.4 %

After launch, BharatBenz products has so ld 512 units and is showing


1,0 00

0.2 %
signs of an impressive growth ahead.
0.0% 0.0%
50 0

0 0.0 %

2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)


Sales units Market Share

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Competitors Overview

6,0 00 10 %

0.6%
1,2 00 0.7 %

5,0 00 0.6 %

1,0 00

0.5% 0.5 %

4,0 00

80 0

0.4% 0.4 %

3,0 00

60 0

0.2% 0.3 %

2,0 00
0.2%
2%
40 0

2% 2% 2% 0.2 %

1,0 00

20 0

0.1 %

2%
0 0%

0 0.0 %

2008-09 2009-10 2010-11 2011-12 2012-13 (Q2) 2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)

Sales units Market Share Sales units Market Share

3,5 00

1.1% 1.2 % Source : ACG

3,0 00

1.0 %

2,5 00

Interestingly SML Isuzu is keeping 2% market share since 2008-09


0.6%
0.8 %

2,0 00

0.5%
0.4% With Mining activities slowing down Volvo trucks sales have come down
0.6 %

0.4%
1,5 00

1,0 00
0.4 % drastically.
0.2 %

50 0

MAN, Scania, Kamaz, Hino; sales also coming down


0 0.0 %

2008-09 2009-10 2010-11 2011-12 2012-13 (Q2)

Sales units Market Share

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Latest Development

Volvo has launched 10X4 tipper for off road application with price tag of more than 1 crore INR

Product Highlights:

13L engine with a 43 ton capacity


480 HP and 2400 Nm torque
Euro 3 compliant - Volvo D13A480 engine
Crawler gear ratio of 16.41 : 1
Robust : 24 metre cube rock body suited to mining applications
5 axle dump truck, 3 steerable
Air suspended pusher axle with electronically controlled suspension for optimized load distribution
Additional parking brake on rear-axle for braking on steep gradients

During the IAA 2012-Hannover, all leading players has focused on New Emission standard and fuel efficiency trucks with latest technology

VECV plans to invest about Rs 2,500 crore by 2013 as part of the Swedish automobile company's push to make India a global development and manufacturing hub.

Scania is going to launch first Tractor product range and luxury Buses, Full report is available Scania Strategically player in India

Daf is also ready to enter Indian market, 25t, 6X4 Tipper is under trial now in Tamil Nadu

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


SWOT Analysis

Strengths Weaknesses

Daimler is recognised as one of the top premium brands (alongside Daimler launched new Product brand BharatBenz
Volvo, MAN) Limited Dealer and Service networks
Daimler seem as having well designed, reliable products Yet to see the product performance
Daimler can justify a price level in the market Local components use which will take some time to prove its life
Good brand awareness by launching products High maintenance cost
Daimler has vast global experienced Team with good HRD.
Daimler is focussed on Trucks & Buses in India

Opportunities Threats

Bharat Benz is set to compete against Ashok Leyland and Tata motors Daimlers price level is close to Tata and Ashok Leyland, but this
in mass market segment segment is known for loyal customers of Ashok Leyland and Tata
Improved sales in last two months before starting commercial sales There is no Cowl & Chassis product offering
Introduction of EIV norms in 2016
Re -Sale value and TCO calculation will take some time
Proper IT systems that grow knowledge of key customer operations and
UD, MAN would have similar quality product like BB
their knowledge of offering
Spare parts availability and price

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Customer Segmentation

Price

3
BB target segment strategy 1 2 3
Moderate
customers
ACG target segment analysis 3 1 2
Semi Moderate
2 customers Moderate Traditional customers Semi Moderate
Trend customers
customers
1

Traditional customers

Volume

BharatBenz is targeting Tata Motors and Ashok Leyland customer segment in which most of the customers are loyal.
ACG analyzed that the customers of MAN, AMW, Hino, Mahindra Navistar are more open and flexible to accept new brand and therefore this
segment will be immediately affected.

BB- BharatBenz ;ACG Autobei Consulting Group

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Customer preferences:
Ashok Leyland Vs BharatBenz

Price (INR) Fuel consumption) Re sale value Feature benefits

High

Low

LCV M&HCV LCV M&HCV LCV M&HCV LCV M&HCV

Note: Height of bar shows the importance of that parameter in its segment

BharatBenz and Ashok Leyland are close in terms of price

BharatBenz is giving slightly better mileage than Ashok Leyland

BharatBenz Re-Sale value can not be evaluated at this stage

BharatBenz has enhanced product features compared to Ashok Leyland

LCV: <7..51, ACG analysis after launching LCV products

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Customer preferences

Brand value Authorized service network


Spare parts Maintenance cost

High

Low

LCV M&HCV
LCV M&HCV LCV M&HCV LCV M&HCV

Ashok Leyland is heading most of purchasing parameter in LCV and M&HCV segment, need to maintain its position

Maintenance cost of BharatBenz is high compare to Ashok Leyland

Spare availability & price will be also issues for BharatBenz

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Purchasing Behavior and segments

Price

Niche segment
2011 2020

Modern segment

Mass market

Low cost Budget Premium

Mid Modern trucks segment

Volume Source: ACG Analysis and data bank

BharatBenz is targeting both segment by one product brand.


In terms of quality it belongs to Mid segment, but in terms of price it belongs to mass market

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Purchasing Behavior and segments

Haulage (In Km) Advantages


Fuel consumption
First Service 50,000 More uptime
Second Service 2,00,000 More uptime 0 .2 to 0.3% better mileage compare to Indian OEM

Saving 12 ,000 to 15,000 INR per year

Tipper (In Hrs) Advantages


First Service 7,50
Second Service 15,00 25-30% Maintenance cost

Compare to Indian OEM

Insurance Advantages

Covered toeing charges of around 25,000INR

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Daimler Strategy-
Eye on Emerging markets

Aim to became Market leader in India- Target sales in 2013 is 10,000 units
Strategy: Global player but act like Domestic player

Plant area: 400 acres


Plant investment: 4,400 crores
Production capacity: 36,000 to 70,000 units
Product range: 6 to 49ton, planning to launch 17 products by end of 2012
India Product USP: claim better fuel efficiency with more power
Currently 28 dealers have started and target to set up 110 by next year

Enrty in Chinese market with Foton in HDT segment

Production capacity 160,000 units


China
Operation start by July 2012

JV with Kamaz, market leader in Russia


Providing cabin and other component to Kamaz

Impressive sales performance


Russia

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Advantages for BharatBenz

By investing in India, Daimler want to take two digit market share, DICV also want to have a cost effective procurement

Cost effective procurement Largest and fastest growing market Production hub for Mid market segment

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Sales kit

Product Advantages

Traction Distribution Long haul


Operations & Logistics
After sales
Sales

Insurance

Mileage indicator

AMC Custom adjustment to most comfortable


driving position.
24X7 driver assistance
Ideal for highway driving and cruising
Longer oil change interval
High torque at low rpm

BharatBenz is giving all services under one roof like own Finance, Cash less insurance, AMC etc

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Product Range- By Application

4941K

4928
2528

3123

Haulage
Traction

3128 2523

Long
4923
2523
Budget 1214
1217

2523 3123

2418 914
3118
1212 2516 4923

Ecomet 1212
Ecomet 1012
2516
Trend

Low cost Model no.

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Product position-Tippers

170hp 230hp 280hp 280hp

2528
Price (INR)

3128 28.46 to 28.77

6X4
2523
All tippers are launched on attractive price, direct
~ 33 to 34 competition to Ashok Leyland & Tata Motors
8X4 products
1217 ~ 25 to 26
6X4

~ 12lacs
4X2

Horse Power (hp)

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Network Analysis

108

28

Reception counter

2014
2012

Best Dealer Network in India in terms of facilities and investments


Dealer design as per branding guideline

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


DICV Dealer Network

35 33% 35 %

30
28% 30 %

27%
25 25 %

20 20 %

15
13% 15 %

10 10 %

5 5%

0 0%

North Region South region West Region East Region

Number of Dealers parcantage

North-region is the biggest market in India for trucks , BharatBenz is having maximum dealer penetration in North followed by then South.

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Region wise Dealer Network

North Region South Region 9


11 Total: 26 8
Total: 31 Rajasthan
7 Tamil Nadu
Andhra Pradesh
7
Karnataka
6 Haryana 6
UP

Punjab 2

1
Delhi Kerala

West Region East Region


10
Total: 25 Total: 12
Maharashtra

6
Gujarat 5
4 MP

Orissa

Chhattisgarh

West Bengal Jharkhand

Currently Not fully developed Sufficient developed Insufficient developed

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Sales Analysis-Bharat Benz

38%
13 0 52 %

12 8

51 %

12 6

50 %

12 4

52%
49 %

12 2

48 %

12 0

48% 47 %

11 8

11 6 46 %

August Sept Rigid Haulage Tipper


Sales units Segment Share

August Sales for BharatBenz was 155, went up to 250 by September marking a 38% growth
In September 12 ;Tippers constitutes 52% with 129 sold units while the Rigid Haulage been sold 121 units fulfills the rest 48%

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Segment wise sales

Percentage sales
Sept Sales

9t 25t 31t 9t 25t 31t

BharatBenz had sold 128 units in 25t segment which is the biggest segment(M&HCV) in India
31 ton is one of the fast growing segment in India and BharatBenz has launched both 8X4 Tipper and 8X2 Rigid Haulage in the segment.
They managed to sell 92 units in September which seems to be impressive .

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Model wise sales

Sept Model wise sales

914 R 2523 R 3123 R 2523T 3123T

For September, 2523T has been the most sold model with 79 units, followed by 3123T with 50 units

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Opportunity for Export market

Taiwan

2004 2005 2006 2007 2008 2009 2010 2011 2012 (E) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)

Source: ACG

Major players

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Competitor product position 31T, Tipper

18 cu.m for rock body Example


20 cu.m. for box body (construction) Major Variants
23 cu.m. for washed coal applications
15 cu.m for heavy duty rock body

Actros 4841K, 18cu.m


Volvo FM 12, 400 Additional Sales units, Sales forecast, Segment growth, Segment size Market Share, Applications,
Purchase criteria, Product USP, life cycle, Product features, technical specs of all trucks

Scania P410
P1 to P2 Million
+ 2%

P1 to P2 Million
+ 2%

P1 to P2 Million
+ 5% 31.280 MAN 18 cu.m Raex body

P1 to P2 Million
Price Strategy + ?% 31.280 MAN 18 cu.m box body
AMW 2518
P1 to P2 Million
+ 2%
Ashok Leyland U3123
P1 to P2 Million

Note: Final price depends on number of units sold, package and negotiation skills

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Small Commercial Vehicles (SCV)

Arctic White 207

TL/31 CC 4X4 Economy BS3 AW

ARCTIC_WHITE-TATA 207DI EX, 497SP NA, 31

ARCTIC_WHITE-TATA 207DI EX, 497SP NA, 31

ARCTIC_WHITE-TATA 207DI EX, 497SP NA, 28

ARCTIC_WHITE-TATA 207DI EX CREWCAB,497 S

ARCTIC_WHITE-TATA 207DI EX CREWCAB,497 S

ARCTIC_WHITE-TATA 207DI EX CREWCAB ,497

2013 2012

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Small Commercial Vehicles (SCV)

Tata ACE Tata ACE

1.8 Cum HOPPER TIPP_TARP ON ACE HT BS3,


ACE HT ACE CNG BS4 AW

TATA ACE,275 CNG


1.8CumHOPPER_TARPONACEHT,BSIV ENGINE,WITHOUT LOADBODY

ARCTIC_WHITE-TATA ACE EX WITH BANJO ACE HT BS4 IC


REAR

ACE EX BS3
ACE SUPER BS3 AW

2013 2012 2013 2012 2011

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Small Commercial Vehicles (SCV)

Arctic White 207

TL/31 CC 4X4 Economy BS3 AW

ARCTIC_WHITE-TATA 207DI EX, 497SP NA, 31

ARCTIC_WHITE-TATA 207DI EX, 497SP NA, 31

ARCTIC_WHITE-TATA 207DI EX, 497SP NA, 28

ARCTIC_WHITE-TATA 207DI EX CREWCAB,497 S

ARCTIC_WHITE-TATA 207DI EX CREWCAB,497 S

ARCTIC_WHITE-TATA 207DI EX CREWCAB ,497

2013 2012

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Small Commercial Vehicles (SCV)

Vajra & Others

Mini Vajra on 207/31 DI 4 X 2

MINI VAJRA _ 207 DI _APP

207/31 RX WT SC PS FLB BS3 AW

207/31 CC PS BS3 AW

2013 2012 2011

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Small Commercial Vehicles (SCV)

Tata ACE Tata ACE

1.8 Cum HOPPER TIPP_TARP ON ACE HT BS3,


ACE HT ACE CNG BS4 AW

TATA ACE,275 CNG


1.8CumHOPPER_TARPONACEHT,BSIV ENGINE,WITHOUT LOADBODY

ARCTIC_WHITE-TATA ACE EX WITH BANJO ACE HT BS4 IC


REAR

ACE EX BS3
ACE SUPER BS3 AW

2013 2012 2013 2012 2011

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


AMW Tractor
35.2/40.2 & 49T
GCW 49t, ABS,BSIII

GVW 16.2t, box body, Eaton 6 speed, 4X2

GVW 31t, 18cum Box body, Eaton 9 speed, 8X4

GVW 25t, 14cum, rock body,ZF 9 speed, 6X4

GVW 25t, 12cum rock body,Eaton 9 speed,6X4

GVW 25t, 180hp, 16cum box body,ZF 9 speed,6X4

GVW 25t, 180hp, 14cum box body,ZF 9 speed,6X4

GVW 25t, 180hp, 14cum box body,Eaton 6 speed heavy duty gear box

GVW 25t, 180hp, 14cum box body,Eaton 9 speed,6X4

GVW 25t, 180hp,Transit mixer chassis, Eaton 6 speed, 6X4

GVW 31t, 180hp,8X2, Chassis, Eaton 6 speed gear box

GVW 31t, 180hp,8X2,Chassis, Eaton 9 speed gear box

GVW 25t, 160hp,6X2,Eaton 6 speed, without AC, Cowl & Chassis

GVW 25t, 160hp,6X2,Eaton 6 speed, without AC, Cab & Chassis

GVW 25t, 160hp,6X2, Eaton 6 speed, with AC, Cab & Chassis

GVW 25t, 180hp,6X2,Eaton 6 speed, Cab & Chassis

GVW 25t, 180hp,6X2, Eaton 9 speed, Cab & Chassis

GVW 35.2t, 180hp,4X2,Eaton 6 speed with 2nd fifth wheel, with ABS

GVW 40.2t, 180hp,4X2,Eaton 6 speed with 2nd fifth wheel, with ABS

GVW 40.2t, 180hp,4X2, Eaton 9 speed with 2nd fifth wheel, with ABS 2013 2012 2011

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Ashok Leyland Tipper
16.2T

1616il/2_210_WB_H_SERIES_6ETI 3K_Chassis

1616il/1_185_WB_H_SERIES_6ETI 3K

1616il/1_185_WB_H_RIG_CHASSIS_SERIES_6ETI 3K

1616il-4330MM(170.5")WB goods chassis fitted with'H'Series


6ETI3K(BSIII)

2013 2012 2011

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Ashok Leyland Rigid Haulage
25T

2516H3/4C_6X4_198_H Series_WITH_DAY_CAB_RMC_CHS

2516iL/1_6X4_193_6ETI 3K_10.00x20_Day_Cab_Ply

2516XL_6X2_260_6ETI_10.00x20_Ply

2516il_6X2_193_6ETI 3K_WITH_SL_CAB_10.00x20_Ply

2516il_6X2_193_6ETI 3K_10.00x20_ply

2013 2012 2011

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Govt/Institutional Sales

Absolute price of all model with variants can also be provided

Haulage Tipper

GVW 16T

GVW 25,31T

HD Haulage
Including tractor Terra 16/25T

LCV Haulage

This price need to deduct from MRP of the model

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Price on Product Change

Model Aggregate Type1 Aggregate Type2 List Price (w/o VAT)


Truxo25 1S 2S 9,000
Non-AC HVAC 40,000
Non-ABS ABS 70,000
Crossply Tyres 10.00 x 20 (11 tyres) Radial Tyres 10.00 x 20 (11 tyres) 50,000
Truxo31 1S 2S 90,000
Non-AC HVAC 40,000
Non-ABS ABS 70,000
Torro 25 Non-AC HVAC 40,000
Traco 35 Non-AC HVAC 40,000
Crossply Tyres 10.00 x 20 (7 tyres) Radial Tyres 10.00 x 20 (7 tyres) 28,000
Traco 40-202 Non-AC HVAC 40,000
Crossply Tyres 10.00 x 20 (7 tyres) Radial Tyres 10.00 x 20 (7 tyres) 30,000
Traco 40-260 Non-AC HVAC 40,000

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Price on Product Change

40,000 INR
6 Speed 9 Speed

4018TR
6 Speed 9 Speed

Non AC AC
2518HL
Cowl Cabin

6 Speed 9 Speed
2518TP

6 Speed 9 Speed

3118HL

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Price on Product Change

LCV BSIV
Haulage 10.50, WB 2,750 BSIII
Cab Chassis

10.59XP, 3350mm CAB & CHASSIS XP 14ft, BSIII CAB & HIGH SIDE DECK XP 14ft, BSIII
Cab Chassis

10.80XP, 2815mm CAB & CHASSIS WITH PTO AND AB CAB & CHASSIS WITH PTO, AB & PS

Price difference

POWER STEERING AIR BRAKE PTO

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


BharatBenz

Unit Cost Change intervals


Spare Parts Rep Qty/ Vehicle
(Rs) (In Hrs)

Fuel Filter 1 487 1,000


Oil Filter 1 564 1,000
Air Filter (Primary) 1 1,540 2,000
Air Filter (Sec) 1 513 1,000
Water Separator 1 653 1,500
Steering Filter 1 122 4000
HYVA - Filter element on return 1 683 1,500
line
HYVA - Breather filter 1 135 1,500

Change interval
Lubricants Rep Qty/ Vehicle Cost / lit
- Engine oil replacement interval every 1000 Hrs, unlike in other models where the (In Hrs)
replacement interval is every 500 Hrs.
Engine Oil 26 220 1,000
-Advantage Bharat Benz: Consumes only 50 % of Oils and consumables Gear Box oil 13 223 2,000
for the given running hours as compared to other models. Rear Axle oil 14 250 2,000
Coolant 15 390 4,000
- Prices of Oils and Filters on Par with the competition. 4 240 4,000
Power steering
- Based on the normal Industrial practice.
Clutch fluid 0.4 300 1000
- Rear Axle oil replacement taken for only one Axle.
Cab tilt oil 0 240 4,000
Hydraulic Oil 55 230 4,000

Source: ACG Databank

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Spare Parts price- Local market

TATA VECV Mahindra


TATA
1613, 10.50,59,75 Mahindra ALFA, loadking,
Models 1109,1112
1615 80,90,95, MAXIMO GIO 2 CABSTA
1613,1615
1616 11.10,20.16 R
Clutch disc
Pressure plate
Clutch releaser bearing
clutch lever kit
Clutch finger kit
All OE manufacturers have restricted the terms
Universal joint cross of warranty under clause defect in material subject to
Oil seals approval from Regional Office
Brake Cam Same has been followed as thumb rule even with
Air filter Local/OE supplier market
Fuel filter
crown wheel pininon assy
King pin
King pin bearing
Wheel bearing
Lube filter
Engine bedding
Cabin bedding
clutch m/c
relay valve kit All the values indicated are in Rupees and
EOK subject to change without notice
Source: ACG Databank

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Pricing Strategy

Relation between Profit, Sales units and price changes

Profit Sales

Fig 1 shows traditional trends on effect of pricing on Truck Sales

We can change figure 1 scenario into figure 2 by applying right Strategy

Example: Volvo Trucks has changes its position from fig 1 to fig

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Table of Content

Macro Economy Brand wise* Segment wise Category wise

Key Economic Indicators Sales Small Vehicle Rigid Haulage


Industry overview Production Light Duty Truck Tractor
Economy forecast Export Medium Duty Truck Tipper
Heavy Duty Truck Others

Pricing Analysis Competitor Analysis Customers behavior Sales Forecast

Rigid Haulage Product position Purchase behavior 3 years forecast


Tractor Pricing strategy Psychology New market development
Tipper Brand perception Behavior parameter forecast Technology up gradation
Others

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Purchase behavior

Acceptance

Consistent Cost Management


TCO is seen as the fundamental for cost analysis and management
Customers look for feasible service contracts(AMC) and uptime guarantees.

Strong professionalization from purchasing behaviour to operations


Professional approach for purchase (e.g., centralized, dedicated purchase departments, multi-step
tender processes)
Focus on core competence and outsourcing of non-core functions
Improving efficiency.

Consolidation into large fleets to increase scale advantage and purchasing power
Outsourcing of in-house transport capacities and logistical functions
Large, professional fleet operators benefit from privatization of public transportation (e.g., waste
management)

Source: ACG

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Purchase behavior

> 25
Large fleet operators
Professional buyers through their purchasing
department
Rich experience in market offering and purchasing 11-25

Fleet size
High buyer power

Small fleet operators/owner operators 3-10


Owner cum driver
Vehicle purchased in individual processes for each
truck
12
Basic knowledge on purchasing tips

Vehicle is Vehicle is
a tool the tool

Vehicle usage

Vehicle is a tool
Trucks means just material transport
Trucks performance does not matter

Vehicle is the tool


Core business is Transportation
Trucks performance, TCO, performance are important factors

Source: ACG

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Purchase behavior

Customer Typical Trucks Application


segment fleet size "A" tool "The" Tool

I There are many traditional owner drivers in India. They want immediate
return and good Re-Sale value for their vehicles.
Owner operator 1-2
Brands are not very important for them generally they go with traditional
Brands. It is very price sensitive segment

II Normally it runs on sub contract. Financial they are not very strong.
TCO and brand value does not consider important while purchasing
Small fleet operator 3 - 10
vehicle. Re sale value , Initial cost and maintenance cost are important for
them.

III They are brand conscious and consider TCO also. It is easy for
Medium fleet them to get finance because they have some free vehicle which
11 - 25
operator allow them to earn some profit.

IV Have a team of professionals, Own workshop to repair and maintain their


Large fleet operator > 25 fleet. Some of them are opinion maker in their region. Brand and TCO are
important tools for them.

V In Municipalities, sale process start from tender. Price is the most


Municipalities/Specia 50 - 150
important criteria for them. For special vehicle MAN is the important player
l-vehicle operator in this segment.

Source: ACG

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Behavior parameter forecast & Psychology

Fuel consumption) Re sale value Feature benefits


Price (INR)

High

Low

LCV M&HCV LCV M&HCV LCV M&HCV LCV M&HCV

Maintenance cost
Brand value Authorized service network Spare parts
High

Source: ACG

Low

LCV M&HCV LCV M&HCV LCV M&HCV LCV M&HCV


Note: Height of bar shows the importance of that parameter in its segment

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Market Forecast

Segment overview

SCV LCV MCV HCV Industry


(2-3.5T) (3.51-7.5T) (7.51-16T) (> 16.1T)

FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Figure In 1,000

Source: ACG
Based on ACG forecast module

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


New Market Development

Segment Shift concept

GVW 12T GVW 16T GVW 25T

By giving equivalent or more power to 12T truck can perform like 16T truck but at the less price and better operating cost
Chassis body option can give option to customers either to use as a Haulage or Tipper

12T and 9T product can enter in city during day time, this is also one of the advantage

India is still price sensitive market, There should be balance between price increase and number of features

Segment shift Source: ACG

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Technology Up gradation

Indian Truck market is going to be changed but in slow pace. For mass market application still it will take time to accept new technology by customers. However few
Segment like mining and special application are already clicked in India.

It is very important to understand that each application is having specific and some time limited technology requirement. Customers are not ready to pay more if ratio
Of technology and price do not come in economical mode.

In last few years, Indian OEM like Tata, Ashok Leyland, Eicher has put good efforts to improve its technology but still it look that long way is there to come with European
Technology. Due to market dynamics favors, After sales and loyalty is helping them. Till date none of the Indian OEM is successful as per their expectation that they can
competitive European products.

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis


Contact

Ms. Nidhi Singh


Business Head - Automotive Research
Autobei Consulting Group - ACG
Mobile Number: +91 9824865333
Email: Nidhi.Singh@autobei.com
Website: www.acganalysis.com
www.autobei.com

About Autobei Consulting Group (ACG):

Autobei Consulting Group - ACG is a management consulting group which has leveraged on its expertise and proprietary databases to provide "Customized Solutions" in
areas such Sales Analysis, Business Planning, Market assessment and Project Feasibility on Global Automotive Industry. We are capable of providing exclusively
State wise, segment data like Tipper, Tractor and Haulage, Passenger vehicles. Two wheeler. With a strong network for primary data procurement, we can get any tailor
made research reports ready within a short interval of time. ACG also serve as a web-platform where one can find all the required information regarding Passenger
vehicles, Commercial vehicle, two wheelers etc across the globe. We provide a Global Platform for Truck and Bus Manufacturers, Dealers, Vendors and Fleet Owners to
come together and gather required information within seconds without jumping websites.

Declaration:
This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the
exercise of professional judgment. Neither ACG nor any other member of the organization can accept any responsibility for loss occasioned to any person acting or
refraining from action as a result of any material in this publication.

Autobei Consulting Group (ACG) BharatBenz Strategy Analysis