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Sunday, May 27, 2012

Taking the Competition Head on – Bulls Fight Getting Closer

  




Everything around is changing at a fast pace. Stocks, Infra, Real Estate, you name any sector and they are fluctuating. Out of it country's one of the largest sector spanning across length & breath of the country – Yes the "Road Transport Sector" is too witnessing a major evolution. For some it is evolution and for others it’s the tug of war for “Survival” – “The Survival of the Fittest”.

Road Transport, the base of commercial vehicle industry and one of the major sectors which accounts to 5.4% of GDP amid all fluctuations is poised to grow at a rate of 10% per annum. Commercial Vehicle (CV) industry which is considered to be one of the most dynamic industries is set to change in coming months. 

Five years down the memory lane the CV industry in India was ruled by the Automobile Giant Tata Motors followed by Chennai based Ashok Leyland and Indore based Eicher Motors. Today more players are joining in, in the form of AMW, Mahindra Navistar, MAN, Hino - All eager to grab their pie of business and to reap in some quick numbers in the

Year 2012 is all set to witness entry of yet another major Global Player, Daimler AG in India. Products from DICV are due to be commercially introduced under the Brand Name Bharat Benz somewhere in September this year. Battle ground is prepared and it is not going to be a cake walk for any of the player. A fierce battle is on the cards.

But the question is “Where this battle will lead to”? Is it worth talking about the two giants (One Global & Other regional) coming head on? One has the local understanding developed over a period spanning more than half a century and the other having best of the technology never seen or heard of.

Tata Motors has been into trucks for last 60 Years and it’s very difficult for a new company to generate that Trust Level to divert big chunk of customers to them. They will definitely live up and sell initial good numbers, all thanks to the hype created by highly focused marketing activities but to keep the momentum on it will take much more than the Power Yatras and Press Conferences.

Even the best of the CV Pundits have not been able to predict the dynamic trend of CV Industry. Amid high cyclic downturn speculation FY12 was on a boom for CV Industry registering a growth rate of 18.2%. Well to reach any conclusion or before drawing a line we need to under stand the Giants and their offerings (Tata & BB in this case).

When BB came in 6 years ago, they had bench marked the CV range of vehicles available in India. So after bench marking here is what they had to offer against each of the Tata Product.

Sr. No.
Tata
            Bharat Banz
1
LPT2518
LPT2523
2
LPK2518
LPK2523
3
LPT3118
LPT3123
4
LPS4018
Not Available as of Now
5
LPS4923
LPS4928
6
LPT1109
LPT1214
7
LPT909
LPT914

Bharat Benz products (M&HCV) are based on the Axor Platform which may be fit and fine for Indian market but Daimer AG (Parent Company) has shifted on to Actros Platform World Wide decades ago.

The Passage to Indian CV industry has not been easy to breach in past and the job is much more difficult today which is very much evident from failures of 7 JVs as of now.


Ashok Leyland the second largest CV manufacturer after Tata is at 21% MS. The gap is mammoth “41%” with Tata at 62% MS (MS calculated considering all products from Sub 1T category to 49T Category).



The Road Ahead

It’s not going to be easy for BB in India, well it’s not going to be easy for Tata as well to save its Market Share. With competition increasing from all sides (AL, MN, AMW, VECV, and now BB) it’s a tough task ahead.

Tata is definitely prepared when it comes to products. Auto Expo 2012 was the platform when Tata Motors showcased its future products:-

                                          Ultra 1017   


                                                       Ultra 714

                                                       Prima 4028       
                                                                   
                                                       Prima 4928

      Prima 4023 LX
                   
                                                       Prima 2528 K

                                                       Prima 3138 K


Tata Motors spends close to 800 Crore on R&D for its Indian arm (Excluding JLR) which is one of the highest among its Indian counterparts.

Understanding the Practical Situations of CV Industry/Fleet Operator:-

  1. Having big pockets filled with Cash is not only one thing which can take you ahead in the CV industry.
  2. With huge investments coming from channel partners’ viability will be one major issue as overheads will remain high.
  3. Though some have complained regarding the present slow moving, smoke spewing trucks on highways. Do we have infra to support high speed trucking in India.
  4. Also would like to highlight the rolling speeds of present range of trucks is way higher than what any common man thinks of. (In excess of 80 Kmph).
  5. The drivers who are handed over the vehicles ply them in the speed range of 50 Kmph to 65 Kmph as this is the highest fuel efficiency band. Any saving in fuel directly goes into the driver’s pockets.
  6. In this dynamic industry any new product launch can change the entire game. A 37 Tonner being launched by Tata, AL, AMW which may lead to a segment shift is still under conceptualization stage with many other competitors.

Coming months will be a litmus test for Tata & its competitors. Though volumes are set to grow there will a shift of Market Shares. Whatever happens it will be fun to watch the “Bulls Locking Horns” – One trying to save its “Pie of Business” and the other trying to grab one.


Saturday, May 26, 2012

Change at Tata Motors | Forbes India Blog

Change at Tata Motors | Forbes India Blog

Its well said that "Change is law of Nature as nothing is Permanent in this world." It would be interesting to see how the management lines itself in the months to come. 

The job for the new appointees gets more critical amid the huge speculation of cyclic downturn approaching ahead. 

Friday, May 25, 2012

My First Transcript




My First Transcript


25th May, 2005
17:00 Hrs

Today, I signed documents marking my entry into automotive world with 1st job in hand. Start of the day was not a big surprise as had anticipated the regular Pre-Placement Talks, Technical & Aptitude Exam followed by PI.

I must mention the end result was pretty unexpected when The Dean (COAE) announced the end results. I and 4 others had been selected for the job which marked the start of a new phase in Life.


30th June 2005
10:30 Hrs

Paschim Express halted at the platform No. 1. Within moments we boarded the train. With heavy hearts and wet eyes our families gave us the Bid Adieu. In spite of no one uttering a single word, blessings for a promising future can be heard long after the train had left for the destination.


1st July 2005
10:00 Hrs

First day to Office was remarkably pleasant. Everything was so well organized. We wished each other a happy corporate life and went on to fulfill the joining formalities.
We were communicated that we will have to go through 2 months of Product Training in PTC.
Coming were the days when we would be Re-introduced (Yes, Reintroduced …We studied Machines in Engg. though not that seriously as we should have done.) to the Automotive Machines, Tractors to be Precise.

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25th May 2012
10:00 Hrs

Today, part of one of the leading Commercial Vehicle Manufacturer of India contributing bit by bit to this CV industry which is projected to double from current levels by Year 2020.

Why this Blog




Why this Blog


A two way communication is core to every information sharing. This Blog is dedicated to all my friends, Colleagues, Mentors and all enriched minds like you. This is for the person who in some or the other way has left or will leave ( In Future) an everlasting impression on my “Home Page” called “Life”.

This is your Blog and needless to say requires each one of yours valuable contributions for making it large.And remember that intentions are the blogs serve as a bookmark for us all to be focused on the different goals for which particular “Blogs” are meant for.

With this blog would try to cover up whatever is going around us all. Whether it’s the upcoming range of CVs, Cars or any work of Anthropology as in a new initiative by Aamir Khan on Satyamev Jayte.

And Yes, the blogs are open for real disagreement if any. It would be a wonderful experience to have you all on board for a free communication.

Karan Mehta