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Old 31st August 2011, 14:29   #16
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Default Re: Starting up a Transport Business

@ashley@ - ;-)

At least one guy here has started business in spite of my advice, and seems to be getting roaring business.

Quote:
Originally Posted by Mr.Beat View Post
Thanks for the knowledge.

The thing is i do not want the taxi owners to strike a deal with the client when they go to service them, how can i stop/deter that?
You cant. Even if you own the vehicles, you cannot prevent the drivers starting off on their own.

Taxi operation is a low entry barrier business. Exit barriers are high. It will take between 3-4 months to get the permit transferred away from your name (that is, if you own the vehicles).

Quote:
How do i get a good crew? Anyone has info as to how much these guys make in a month? or how much are drivers paid?
Make that a part of your market study. But nobody is going to stick on if he cannot get food, pay for accomodation, educate kids and plan retirement - usually in that order.

There are several issues a market analysis will not teach you. Just remind me to post - if I do not make another post within next 12 hours. Need to go now.
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Old 31st August 2011, 15:31   #17
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Default Re: Starting up a Transport Business

Quote:
Originally Posted by BaCkSeAtDrIVeR View Post
At least one guy here has started business in spite of my advice, and seems to be getting roaring business.

There are several issues a market analysis will not teach you. Just remind me to post - if I do not make another post within next 12 hours. Need to go now.
Yes, i surely will.

Quote:
Originally Posted by ghodlur View Post
Few suggestions:
1) Know the Municipal officials dealing with transport dept.
2) Know the Laws/rules of Motor act.
3) Engage some experienced drivers who know the city in and out.
4) Insure the vehicles.
5) If you have sufficient funds buy your own vehicles, else hire.
6) Be positive always since you might not see the fruits of your labour initially.

All the best. Think Positive always.
Thinking positive as of now, i am not planning to invest much at the start nor in later stages as of now.

Quote:
Originally Posted by Gautam Misra View Post
The answer to this query would depend on the facts and circumstances of a particular case.
Again as i said above, will NOT be my own vehicles. Thanks for the information, will keep that in mind.

Quote:
Originally Posted by ajman28 View Post

All the best to you. When it comes to transportation business, I hope you would be the one replying to our queries in the near future!

Aj
Thanks, i hope it is the near future.


Will be starting with the feasibility study as and when i get time.
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Old 31st August 2011, 15:43   #18
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Default Re: Starting up a Transport Business

I am running a pvt bus service since last 10 years. A good driver gets 20% of gross income, ie Rs.200 for every Rs.1000 earnings.Truck /long route drivers get above 700/- per day (my local service gives Rs.570/- per day)
To find good drivers: you cannot search for good and reliable drivers, but you will find few of your drivers are suitable for your business - retain them by giving mediclaim, children education allowance, commission on return cargo, additional pay etc so that
he should say 'no' to other offers.
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Old 31st August 2011, 15:47   #19
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Default Re: Starting up a Transport Business

Correction - the 20% of gross income applicable only on passenger cabs/vehicles run on per km rate.
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Old 4th September 2011, 12:55   #20
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Default Re: Starting up a Transport Business

Quote:
Originally Posted by Gautam Misra View Post
The answer to this query would depend on the facts and circumstances of a particular case.

Presuming that your vehicle would be driven by a hired driver having a valid driving licence and if you take adequate precautions then there is 99% chance there there would be no liability on the owner. Take the following precautions:

1. Have a driver who has a professional licence for driving commercial vehicles.

2. Be sure that he has a valid licence and if possible check about the antecedents of the driver with the local police.

3. Go for comprehensive insurance of your vehicles and renew your policies in time.

4. Have valid RTO endorsements for your vehicle; register them as commercial vehicles. If your vehicles are CNG or LPG there should be an endorsement to that effect in your RC book.

5. Have valid route permits.

I must add that there are two kinds of liability in case there is an accident: Criminal and Civil.

So far as criminal cases are concerned the driver alone is liable for "rash and negligent driving".

For Civil liability the injured / family members of the deceased can claim for compensation against the driver / owner. However if you have a valid insurance coverage and have taken all precautions then it is the insurance company which will pay the compensation.

I must also hasten to add that the at the end of the day people who are able to "manage" things end up successful in business and that is the sad part of the story.
The very best of luck to Mr. beat if you do decide to go ahead with this business venture. I do hope you keep us informed.

And now I too have a question regarding liability of a commercial vehicle. I notice a lot of transport vehicles as well as private ones rotting in the police yards so want you ask you,

First question:
If the driver is involved in an accident and then the driver runs away abandoning the truck/bus, then will the owner have to cover the drivers liability part as well? And also will the vehicle in question be impounded for extended periods?

Second question:
let us assume that our transport vehicle was involved in an accident and the driver did not run away. The injured party starts legal proceedings against us then usually how long will the process take from the starting of the legal case to compensation judgement. And during the trial will the vehicle in question be impounded?

Last edited by amrisharm : 4th September 2011 at 12:56.
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Old 4th September 2011, 16:25   #21
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Default Re: Starting up a Transport Business

Quote:
Originally Posted by amrisharm View Post
And now I too have a question regarding liability of a commercial vehicle. I notice a lot of transport vehicles as well as private ones rotting in the police yards so want you ask you,
First, please distinguish between:-

a) criminal liability - which solely lies on the driver
b) civil liability for injury to persons which solely lies on the owner
c) civil liability for loss of property which again solely lies on the owner

"Insurance", did you say??

The insurance pays up on behalf of the owner.

There is compulsory insurance against b and c. There is a limit on insurance company's liability for (c) in case of commercial vehicles - AFAIK. (I am more than a decade out of touch with the business; and the law has changed, again, it is "AFAIK".

You need to pay a few hundred rupees as additional premium for unlimited coverage against third party property loss.

Vehicles "rotting away" at police stations are usually those involved in:-

a) drug trafficking and transport of oher illicit goods.
b) stolen vehicles
c) used in crimes (get away vehicles, deliberate hits, etc).
d) Rarely - ownership disputes

The law makes no distinction between commercial and non-commercial vehicles when fixing civil or criminal liability for damages. Or when vehicle is involved in criminal offences (non accident).

Please note that deliberately ramming into something / somebody is not a "motor accident" - it is (attempt to) murder / cause injury / damage, etc.

Pure, unintentional / negligent accidents are covered by Motor Vehicles Act and Indian penal code.

Which brings me to my promise about what a survey would not bring out.

A part of what I wanted to say is already above and discussed by others.

As a business graduate, you will know about the concept of "entry barrier". I have already mentioned that it is pretty low. Also, the fares you can charge is usually fixed by the government. This puts an upper ceiling on what you can earn.

Next, you need to understand fine differences between various types of taxi permits. Except for those yellow top and black bodied cabs of the type we find in Mumbai, more than 98% of all business for all taxi operators all over India is illegal.

Sad, but true. And here is why.

Most taxis are granted zonal permits. (3-4 states). Such taxis are not supposed to take passengers to destinations within the same State. This rule is silly, and therefore is ignored by by all - including enforcement agencies. But a knowledgeable officer can really use such rules. There are at least 2 kinds of registers to be maintained one one the vehicle and another at the owner's office, again, it is rare to find them maintained.

Another important factor - When a vehicle gets involved in an accident, you will need to pacify and provide alternate transportation for the passengers, the police (at place of accident). And things can get nasty / hot if there is injury - the driver's family, his friends (who are more organised than you think) etc can make demands for immediate medical care.

You will have to take of logistics in these situations.

Also, what if the passengers are involved in criminal activities / carry contraband unknown to the driver? You will have to put in place a very good screening and referral system for passengers.
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Old 4th September 2011, 16:34   #22
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Default Re: Starting up a Transport Business

Quote:
Originally Posted by BaCkSeAtDrIVeR View Post
A part of what I wanted to say is already above and discussed by others.

As a business graduate, you will know about the concept of "entry barrier". I have already mentioned that it is pretty low. Also, the fares you can charge is usually fixed by the government. This puts an upper ceiling on what you can earn.

Next, you need to understand fine differences between various types of taxi permits. Except for those yellow top and black bodied cabs of the type we find in Mumbai, more than 98% of all business for all taxi operators all over India is illegal.

Sad, but true. And here is why.

Most taxis are granted zonal permits. (3-4 states). Such taxis are not supposed to take passengers to destinations within the same State. This rule is silly, and therefore is ignored by by all - including enforcement agencies. But a knowledgeable officer can really use such rules. There are at least 2 kinds of registers to be maintained one one the vehicle and another at the owner's office, again, it is rare to find them maintained.

Another important factor - When a vehicle gets involved in an accident, you will need to pacify and provide alternate transportation for the passengers, the police (at place of accident). And things can get nasty / hot if there is injury - the driver's family, his friends (who are more organised than you think) etc can make demands for immediate medical care.

You will have to take of logistics in these situations.

Also, what if the passengers are involved in criminal activities / carry contraband unknown to the driver? You will have to put in place a very good screening and referral system for passengers.
Firstly, Thanks you again for the information.
Yes, i fully understand that the entry barrier is nonexistent in this industry.

I do not plan to own even a single vehicle, which is very much fixed. Most of the operations will be done by the vehicles which are owned by the drivers themselves.

Will need to get in touch with someone who understands criminal cases and also few contacts in the police department would be handy start.

I think i have in mind a system that would deter criminal activities as such. Any system cannot be foolproof though.
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Old 4th September 2011, 18:34   #23
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Quote:
Originally Posted by amrisharm View Post
And now I too have a question regarding liability of a commercial vehicle. I notice a lot of transport vehicles as well as private ones rotting in the police yards so want you ask you,

First question:
If the driver is involved in an accident and then the driver runs away abandoning the truck/bus, then will the owner have to cover the drivers liability part as well? And also will the vehicle in question be impounded for extended periods?

Second question:
let us assume that our transport vehicle was involved in an accident and the driver did not run away. The injured party starts legal proceedings against us then usually how long will the process take from the starting of the legal case to compensation judgement. And during the trial will the vehicle in question be impounded?
The answer to your first question would depend on the "nature of liability". The owner is not liable for the criminal case. For the civil liability for compensation the owner would be liable if there is no valid insurance.

Re: Your second query, irrespective of the nature of case the vehicle should not be detained as it would rot. The Supreme Court has laid down guidelines in this regard.There is a procedure getting the vehicle released under section 457 of the Cr.P.C. and the same is normally released in favour of the owner on proper identification of documents.
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Old 5th September 2011, 07:27   #24
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Mr.Beat,
It is very refreshing to know that your enterprising instincts are kicking in at a young age. My best wishes for your new venture. It is important that you pursue your goal and don’t kill the fire in your belly. No business is successful without taking risk and sacrificing personal and family time. However be wise. Make sure you are not compromising on the fundamental principles of most successful businesses – Honesty, Integrity, Human Resources, Quality and Customer Service.
You should have a decent business plan. Don’t spend ages researching and documenting to come-up with a strong business plan. Your business plan should be simple and effective. It should contain:
Why this business only?
What are your business objectives?
What is this business all about? – Clear thinking on how you want to operate the business.
What is the market size and who are your competitors?
Do your SWOT?
What is your investment model? – Startup & for expansion.
What is your revenue stream?
Finance and HRD plan?
When to exit? – While it is great to be successful but it will be foolish to continue failure before all your wealth is lost.

Present your business plan to someone potential investors. It is not that you need investment for them but you will know if they are willing to invest in your business. If the answer is yes! Then you have a good plan else they will tell you what is missing or your potential failure points. You should get at least 2 yeses out of 10 presentations you do. This is the test for your business plan.
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Old 5th September 2011, 11:10   #25
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Thank you very much to Gautam Misra & Backseatdriver. Things are a lot clearer now after your respective answers. I could have simply pressed the "Thank you" button but that would not express the amount of gratitude I feel you deserve. Once again thank you.

Last edited by manson : 5th September 2012 at 18:54. Reason: Please avoid quoting fairly large posts. Thanks.
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Old 8th September 2011, 09:05   #26
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Default Re: Starting up a Transport Business

I checked with SUNDARAM MOTORS the ASHOK LEYLAND Dealers for Bangalore. This was what I was able to glean on the phone

- 12M Bus Chassis with all the bells and whistles costs 19,00,000 (205HP, Retarder and full Air-suspension)
- 12M Bus Chassis with Weveller in front and Air-suspension at rear costs 15,00,000 (The guy said that tough it is 160 odd BHP it cannot run the A/C on its own)
- 12M Bus Chassis with Weveller suspension only costs 13,00,000
- He said that Air-Suspension and Retarder are optional equipment and Air-Suspension costs 2,50,000 and Retarder costs 1,50,000
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Old 8th September 2011, 10:37   #27
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Originally Posted by TheARUN View Post
I checked with SUNDARAM MOTORS the ASHOK LEYLAND Dealers for Bangalore. This was what I was able to glean on the phone

- 12M Bus Chassis with all the bells and whistles costs 19,00,000 (205HP, Retarder and full Air-suspension)
- 12M Bus Chassis with Weveller in front and Air-suspension at rear costs 15,00,000 (The guy said that tough it is 160 odd BHP it cannot run the A/C on its own)
- 12M Bus Chassis with Weveller suspension only costs 13,00,000
- He said that Air-Suspension and Retarder are optional equipment and Air-Suspension costs 2,50,000 and Retarder costs 1,50,000
Hi Arun,
Sudden jump into price of 12M's?
BTW, 205HP 12M are not available anymore.
12M in its highest variant is with 225HP CRS engine.
BTW, from your signature I believe we will get an another AL Bus owner like our forumer - Raj
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Old 5th September 2012, 14:27   #28
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Default Re: Starting up a Transport Business

hey folks, I too intend to get into the commercial vehicle space soon, say I should be getting into it by the first quarter of 2013.

This is not starting a transport business as such but planning to attach a vehicle to a transport company.

Have zeroed on the Ashok Leyland Dost and also took a test drive. Vehicle seemed fine and I am now in the process of exploring options where the vehicle can be attached.

What do you think is the best business where the vehicle can be attached? I have serious plans of expanding the fleet if the returns look favourable.
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Old 7th September 2012, 21:17   #29
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The DOST is primarily for white goods transport, best thing would be to attach it to some Courier company, any other application and the chances of the vehicle being overloaded increase
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Old 12th September 2012, 11:57   #30
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Default Re: Starting up a Transport Business

Being in the transport business, i would strongly recommend you not to take any vehicle unless you have promised business. Do remember that you cannot keep your vehicle Idle when looking for business
1. Have a tie up with big provisional stores (including Reliance Fresh and likes) to transport their goods from warehouses to distribution points. You can also transport vegetables from markets to their distribution points.
2. Water cans are a hot business with Dost. The Dost can carry more water cans than the ACE and can perform quite good even in the worst road conditions
3. Gas cylinders - your market will be where a 407 or a 909 is not needed.
4. Oxygen and CO2 cylinders for welding shops.

Apart from these, your business mainly depends on your area of operation and the local business there. Please do a thorough analysis of what the Dosts in the market are carrying. All the best. Keep us updated.
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