Go Back   Team-BHP > BHP India > Commercial Vehicles


Reply
 
Thread Tools Search this Thread
Old 24th February 2013, 20:13   #1
Distinguished - BHPian
 
anjan_c2007's Avatar
 
Join Date: Jul 2008
Location: India
Posts: 5,531
Thanked: 4,705 Times
Default Heavy Commercial Vehicle Sales slowing down. Recessionary Trend?

The truck sales have slowed down and the facts and figures from the news appearing in Mint, Mumbai, is proof enoguh of the sluggish demand for Heavy Commercial Vehicles. Tata the market leader and the no. 2 played Ahsok Leyland too have been affected. The third ranking VECV Eicher has reported an increase of just 0.69 % sales however. Daimler, Germany and Beiqi Foton Motor Co. Ltd of China are the two new entrants (BFMCL enters the market this coming December 2013) may face the heat due to the recession in demand.

The news explains the situation:

Quote:
Mumbai: India’s two biggest truck and bus makers, Tata Motors Ltd and Ashok Leyland Ltd, are employing a multi-layered strategy to increase sales in a sluggish market while working towards tackling competition from new entrants such as Daimler AG of Germany and Beiqi Foton Motor Co. Ltd of China.

They are launching models that are more fuel-efficient with a better power-to-weight ratio besides offering corporate discounts and extended warranties to attract customers in an approach that combines technology tweaks and monetary incentives.
Source & Full Article

Last edited by GTO : 25th February 2013 at 14:01. Reason: Keeping fair usage practices in mind, it is best to include an excerpt + link to full article
anjan_c2007 is offline   (4) Thanks Reply With Quote
Old 27th February 2013, 23:02   #2
BANNED
 
Join Date: Mar 2006
Location: mumbai
Posts: 2,004
Thanked: 2,025 Times
Infractions: 0/1 (4)
Default Re: Heavy Commercial Vehicle Sales slowing down. Recessionary Trend?

Yes the economy seems to be heading for a recession currently. Manufacturing indices are down, stock market crashed after the rail budget, with the 2013 budget tomorrow expected to be more of a vote bank appeasing one, and with higher taxation rates, we will definitely slow down big time. The slowing down of Hcv, Lcv sales indicate just that
apachelongbow is offline   Reply With Quote
Old 4th March 2013, 10:13   #3
BHPian
 
arpanjha's Avatar
 
Join Date: Apr 2006
Location: Kolkata
Posts: 166
Thanked: 37 Times
Default Re: Heavy Commercial Vehicle Sales slowing down. Recessionary Trend?

The recession has already hit in some sorts, mainly in the commercial vehicles space. The country is staring at a very bad foreign investment phase, as it is on the brink of a downgrade from global rating agencies, which seems pretty unavoidable seeing the helpless attitude of the government.

The CV space, the demand is too low, mainly due to very bad interest rate strategies and weak demand from the industry. TML has been hugely affected by this, with TML Jamshedpur having huge inventory stock piles and production being cut to 25 to 30% of the previous years. Its a terrible & bleak story in the CV space. This is clearly reflected by the TML ad campaigns on TV, it is unique isnt it?

Last edited by arpanjha : 4th March 2013 at 10:14. Reason: spelling mistake
arpanjha is offline   Reply With Quote
Old 4th March 2013, 10:27   #4
Senior - BHPian
 
comfortablynumb's Avatar
 
Join Date: Jul 2007
Location: Pune
Posts: 1,296
Thanked: 897 Times
Default Re: Heavy Commercial Vehicle Sales slowing down. Recessionary Trend?

There's another thread on a similar topic:

http://www.team-bhp.com/forum/commer...own-india.html

Cheers,
Vikram

Last edited by comfortablynumb : 4th March 2013 at 10:30.
comfortablynumb is offline   Reply With Quote
Old 6th March 2013, 21:15   #5
Senior - BHPian
 
Ashley2's Avatar
 
Join Date: Oct 2009
Location: NH7
Posts: 2,092
Thanked: 1,439 Times
Default Re: Heavy Commercial Vehicle Sales slowing down. Recessionary Trend?

Quote:
Originally Posted by arpanjha View Post
.... This is clearly reflected by the TML ad campaigns on TV, it is unique isnt it?
Ad campaigns have less influence in M&HCV sales. Its a 200% B2B industry with occasional promotion of this kind.
But companies do have primary advertisements to make them closer to people (this need not be with Customers). This will have a positive impact in the brand image of the company and make it a familiar brand to common people.

This all started when ALL roped in MSD as their brand Ambassador and launched their TVC in last IPL season. MSD would definitely cost heavily to ALL and with all TVC going on show in all regional languages, ALL would have spent equivalent to any other passenger car manufacturer during that period.
But I am not sure how much of this high level ad would have fetched additional sales. Onething for sure is it would have taken the brand to next level and going closer to people. That's the reason, the ad speaks about the brand and not about product.

Tata also does the same thing. It need not fetch sales but it has lot of intangible benefits. I remember seeing TVC specific to product in early 2000 when they launched their EX series.

Last edited by Ashley2 : 6th March 2013 at 21:17.
Ashley2 is offline   Reply With Quote
Old 6th March 2013, 22:35   #6
Distinguished - BHPian
 
anjan_c2007's Avatar
 
Join Date: Jul 2008
Location: India
Posts: 5,531
Thanked: 4,705 Times
Default Re: Heavy Commercial Vehicle Sales slowing down. Recessionary Trend?

The budget 2013-14 has come as a succour for the HCV industry. Under the JNURM there is an enhancement of fund allocation by more than 100 % and more buses will be procured particularly for the hill states and also the North Eastern Region.
Thats good news for Tata Motors, Ashok Leyland and Eicher (medium and small buses supplier) mainly and somewhat soothing for Volvo and Bharat Benz.

The link is here:

http://www.livemint.com/Politics/hlp...ost-bus-s.html

Last edited by anjan_c2007 : 6th March 2013 at 22:39.
anjan_c2007 is offline   Reply With Quote
Old 7th March 2013, 16:20   #7
BHPian
 
ajman28's Avatar
 
Join Date: May 2010
Location: Chennai
Posts: 277
Thanked: 22 Times
Default

Quote:
Originally Posted by Ashley2 View Post

This all started when ALL roped in MSD as their brand Ambassador and launched their TVC in last IPL season. MSD would definitely cost heavily to ALL and with all TVC going on show in all regional languages, ALL would have spent equivalent to any other passenger car manufacturer during that period.
But I am not sure how much of this high level ad would have fetched additional sales. Onething for sure is it would have taken the brand to next level and going closer to people. That's the reason, the ad speaks about the brand and not about product.
ALL's market share has now moved upwards of 30%! MSD effect?
ajman28 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
April 2013: Commercial Vehicle Sales Figures for India turbospooler Commercial Vehicles 3 3rd May 2013 00:19
2012-13 Sales: Overview of the Commercial Vehicle Industry turbospooler Commercial Vehicles 5 4th April 2013 14:31
PE deals fall apart in M&A Street - Indian economy slowing down?? nishantgandhi Shifting gears 0 21st April 2008 11:00
Urgent Help!!car jerking and slowing with heavy BASS amit_mechengg In-Car Entertainment 16 25th March 2008 12:57


All times are GMT +5.5. The time now is 17:25.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks