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Old 31st December 2010, 12:48   #1
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Default MAN Trucks in India

Dear fellow BHPians,

I have been studying the MAN trucks strategy in India since its entry in 2005/06 in the truck segment.

The company formed a JV with a very lesser know company in the field of commercial vehicles in India - Force Motors. I was never able to understand the synergy between the companies as one (MAN Trucks) is part of one of the world's largest commercial vehicle group and the other (Force Motros) is not known for making anything (Be it trucks, buses, vans, tractors, auto rickshows) - They are no where leaders or even third position. The only strategy could have been was to leverage ZF Steering Boxes which is licensed to Force Motors in India.

Anyways, even after setting a plant with a capacity of 20000 trucks annually, the companies strategy went terribly wrong as till date they have not sold total of 20000 trucks. With such high idle capacity, I wonder how the company is able to sustain investment returns.

Last year in 2009, the company revamped its product portfolio by optimizing engine powers of its models in 16t, 25t, 31t, 40t and 49t category trucks. Also coupled with increased indeginization, they were able to bring down prices of trucks substantially. All these measures put together, the company was able to reach a figure of 300 trucks/ month.

As I see it currently, the company needs to do the following things in order to grab significant share:

- Revamp the product portfolio with the Volkswagen Truck Range from Brazil instead of high end MAN range. Volkswagen has got a stronger brand pull after the success of cars in India
- Introduce light duty trucks from the Volkswagen range at competitive pricing
- Increase Scania Range in High end premium category to 25t Tippers, 40t Tractors and 49t Tractors from the current 31t Tippers
- Increase dealer network substantially, maybe utilize car network also
- The group should look at bringing all divisions under one portfolio

Views welcome from BHPians.
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Old 31st December 2010, 13:57   #2
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Default Re: MAN Trucks in India

I think MAN is doing pretty well, in the market segment they are competing in, ie the sub-premium CV market. Only AMW are better off in that market, though ALL's U-truck will become a major player here. The Prima's are a little too costly to compete here, and have got stuck between these trucks and the fully premium Volvo's.

You cant compare MAN to the traditional TML and ALL trucks at all, the low costs these trucks offer will be really difficult to match, nearly impossible.
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Old 1st January 2011, 12:05   #3
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Default Re: MAN Trucks in India

Yes, even I do feel the same way.
They are correcting their mistakes and relaunched product to our cost sensitive market.
But I certainly feel Cargo Line Asia(CLA) series are the right product to our Indian conditions. Any other products will definetely perform still worst compared to CLA's.
Sales and Service are the points of concern for MAN right now.
It needs a majoe overhaul.
Incresing Scania range to tractors will add only products in the segment but will not boost the sales as they Niche segment volume is still less. But altenatively MAN can offer 300HP+ engine option in the same CLA series.
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Old 1st January 2011, 12:16   #4
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Default Re: MAN Trucks in India

They are already offering 280hp engines. May be a 320hp engine if available may be offered, but any higher than that would mean a lot of other major changes and thus a much higher cost, which just wont work in the segment.

Though, MAN have to pull up their socks and get ready to fight a good deal of upcoming competition in the segment from ALL U-trucks, Mahindra Navistars and the newer model launches from AMW.
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Old 8th January 2011, 00:11   #5
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Default Re: MAN Trucks in India

Man just need to get buses in the market , not trucks . The dont have to waste time on scania as scania is already present through L&T in India .
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Old 7th July 2011, 16:01   #6
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Default Re: MAN Trucks in India

Quote:
Originally Posted by aparbansal View Post
Dear fellow BHPians,

I have been studying the MAN trucks strategy in India since its entry in 2005/06 in the truck segment.
===========================
- The group should look at bringing all divisions under one portfolio

Views welcome from BHPians.
After reading the aquisition news of MAN by VW, i think something will work out for MAN and SCANIA in India. While Scania announced to set up a plant in Bangalore last month, this aquisition news brings some surprise. Will Scania go ahead with the new plant or will try to join with Force MAN?
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Old 6th October 2011, 21:54   #7
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Default Re: MAN Trucks in India

" VW is on the rise, and has its eye on becoming the largest automaker in the world. But the VW Group is about more than just cars. Their considerable holdings and expanding corporate tree also encompasses several heavy truck manufacturers, and that part of the business has now been cleared to expand.

We first reported on Volkswagen's intent to acquire a larger stake in MAN the truck, bus and turbodiesel engine manufacturer that is not only the oldest company listed on the German stock exchange, but itself also one of the largest.

The move has now received European regulatory approval, clearing the way for Volkswagen's commercial vehicle division to increase its stake in MAN SE from 30.5 percent to 53.71, while increasing its voting rights to a majority 55.9 percent. The acquisition is expected to reduce overhead and redundancies between MAN, Scania and Volkswagen's own truck operations, opening the door for the larger company to become the largest truck manufacturer in the European market. Follow the jump for the official announcement."

http://http://www.autoblog.com/2011/...ver/#continued
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Old 7th October 2011, 18:11   #8
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Default Re: MAN Trucks in India

VW has had a controlling stake in both Scania and MAN for a while now and the battle that was ongoing with the authorities was to get their approval to try merge some of the operational elements of the two brands. Last week that hurdle was cleared with the European trade commission approving VWs move to rationalize Scania and MANs supply chain and other operational aspects.
VW is likely to keep both brands alive given their brand value.

Not sure if these recent changes will really effect the MAN strategy in India - might effect some of the suppliers in the long run though. While im not sure of current numbers there were months (in 2010?) when FML was building about 600 MAN trucks a month. Not sure what the current situation is.
A fact to be considered is that Scania and MAN lack the global foot print \ manufacturing experience that Volvo and Daimler have gained in the past decade. Given the rise of the emerging economies its likely that MAN & Scania will go through a steep learning curve to catch up.
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Old 7th October 2011, 20:59   #9
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Default Re: MAN Trucks in India

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Originally Posted by Zed View Post
....
A fact to be considered is that Scania and MAN lack the global foot print \ manufacturing experience that Volvo and Daimler have gained in the past decade. Given the rise of the emerging economies its likely that MAN & Scania will go through a steep learning curve to catch up.
That's a Nice point!
Man's poor market study was one of the reason that they - Man Force, did not take off in a big way as expected. They dont want to offer a Indianised Man and wanted to push what they have and they are failing.
In this regard I would say the adoption of Daimler as Bharat Benz is a better move to take on India
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Old 11th May 2013, 23:14   #10
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Default Re: MAN Trucks in India

Spotted this one moving in Nagpur. Man has arrived with a bang!

MAN Trucks in India-picture-165.jpg

MAN Trucks in India-picture-166.jpg
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Old 11th May 2013, 23:29   #11
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Default Re: MAN Trucks in India

It makes me want one, don't know what I'd do with it but once Lamborghini brings their tractors here too, I'm headed off to get myself a commercial vehicle license. Why does no one in the picture seem bothered?
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