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Old 6th May 2016, 15:32   #1
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Default Mahindra overtakes Tata; now the No.1 Small Commercial Vehicle maker

Full Economic Times Article

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Mahindra & Mahindra has turned the tables on Tata Motors, the nation's largest commercial vehicle maker, in the market for mini trucks, or small commercial vehicles.

From being a strong challenger a few years ago, Mahindra has not only overtaken Tata Motors as the largest small commercial vehicle maker, but also extended the lead to 15% in the load or cargo carrying truck segment Mahindra has a 52% market share here, compared with 37% for Tata Motors.

If the passenger carrying versions of pickups are included, Mahindra's share is 49% compared with Tata Motors' 41%.
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Old 6th May 2016, 16:17   #2
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Default Re: Mahindra overtakes Tata; now the No.1 Small Commercial Vehicle maker

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"Tata Motors continues to remain focussed on driving sustainable profitable market growth, through customer-centric products and solutions rather than temporary market share gains. With many new launches including those filling in specific niches and customer-friendly initiatives to reinvigorate our go-to-market strategy, we will look to consolidate our gains for sustained market leadership," the spokesperson added.
I am surprised by this statement coming from India's largest automobile manufacturer. If this were a company selling biscuits or shampoos this would have been acceptable, because the product differentiation is quite limited and customers switch brands with more incentives (like freebies etc.) quite frequently.
I doubt that is the case with people buying trucks. They may switch brands once (if they find a cost effective solution) and then they are quite resistant to change. Mahindra understood this and opened dealerships in small towns where no company had an outlet. They offered people moving up from the first generation Tata Ace an option to upgrade-and they provided attractive finance options as well.
If I were in the commercial vehicles division at Tata Motors, I'd be alarmed at this development. I would not have hidden behind a diplomatic statement that reveals nothing. I'd have highlighted how the future products from the company would be class defining.
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Old 6th May 2016, 17:12   #3
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Default Re: Mahindra overtakes Tata; now the No.1 Small Commercial Vehicle maker

Excellent case of Hubris.
TML launched the SCV segment, revolutionized the LCV segment, even sub-4m sedans are contributions from brilliant minds at Tata.
Honestly, I don't know how the first mover advantage of such a high magnitude gets wiped off multiple times for Tata.
This can be a case study for all.
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Old 7th May 2016, 16:51   #4
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Default Re: Mahindra overtakes Tata; now the No.1 Small Commercial Vehicle maker

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Originally Posted by turbospooler View Post
Excellent case of Hubris.
This can be a case study for all.
Even I feel bad for Tata,as they always have the best ideas but someone else executes them better.
They started the sub-4m sedan class with the Indigo cs but it never set the charts on fire,instead the Dzire took the lead.
Same was the case with Nano which was regarded as a marvel but never sold in numbers they forecasted.
Not to forget the Ace which at one time was the only choice of small bussiness concerns,but soon competition was able to provide better alternatives like the Bolero pick-up and Dost.
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Old 9th May 2016, 10:26   #5
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Default Re: Mahindra overtakes Tata; now the No.1 Small Commercial Vehicle maker

It may be a classic case of commercial customers moving up the ladder (from sub 2 tonne to higher) and increase in distribution network + new launches for Mahindra.

The small commercial vehicles can be categorized into 3 segments which are mainly (taking vehicle names of Tata/Mahindra instead of tonnage for easier understanding)

407/Loadking-
Here 407 and its variants rule the roost and is difficult to displace it at present.
Advantage Tata

Xenon/Bolero-
Here Mahindras have taken a huge market share with their rough and tough Bolero pickups. The Tata Xenons/Pickup variants seems to be selling only as a niche and a lifestyle vehicle actually competing with the Isuzu
Advantage Mahindra

Ace/Jeeto-
The Ace has the biggest market share here. However one can see many new Jeeto's on the road recently. This vehicle seems to be a more refined and nicer looking version of the earlier Maxximos which were crude and unrefined and low on reliability (as some owners mentioned)
Advantage Ace but beware of Mahindra

With the increase in number of sale points, Mahindras can quickly push their sub 2 tonne Jeetos to the customers in the semi urban region as they have many farm equipment (tractor) and accessories outlets.

The fact that the Mahindras are catching up with the superior Tatas (on engineering front) quickly and could convince buyers that their products are equally good could make the difference.

Overall its advantage Mahindra with 2 out of 3 segments doing very well on percentage increase terms and given that these are small CVs which would add up to many in numbers.

Tatas have to quickly pull up their game with increased push to retain Ace sales and expand their pickup range to take the top position back.
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Old 9th May 2016, 14:28   #6
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Default Re: Mahindra overtakes Tata; now the No.1 Small Commercial Vehicle maker

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Originally Posted by girishglg View Post
The small commercial vehicles can be categorized into 3 segments which are mainly (taking vehicle names of Tata/Mahindra instead of tonnage for easier understanding)

407/Loadking-
Here 407 and its variants rule the roost and is difficult to displace it at present.....
Both these products are not a part of SCV rather LCV.
You have missed Ashokleyland Dost, Mini Truck GVW 2.5T. Dost have grown from 2.5T to 2.85T with the current rigid setup with same engine and is performing without any major issues.
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