Re: Daimler Trucks unveils BharatBenz Plant at Chennai Taking the Competition Head on – Bulls Fight Getting Closer
Tata Motors has been producing 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 they had created by highly focused marketing activities but to keep the momentum on it will take much more than a Power Yatra and press conferences.
CV industry is a long way to go and it’s one of most dynamic industry. Even the best of the CV Pundits have not been able to predict its trend. Amid high cyclic downturn speculation FY12 was on a boom with 18.2% towards north. I was just reading few of the comments like "OK TATA Bye Bye" and "All highway users would love to see Tata's Demise". Well to reach any conclusion or before drawing a line we need to under stand both the products (Tata & BB).
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.
Tata Bharat Banz
LPT2518 LPT2523
LPK2518 LPT2523
LPT3118 LPT3123
LPS4018 Not Available as of Now
LPS4923 LPS4928
LPT1109 LPT1214
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.
*Source: - Forbes India
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
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 as being commented by some my fellow friends.
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. |