MAHINDRA NAVISTAR SETS FRESH STANDARDS

This is just one of the many ways by which MNAL is trying to differentiate itself from competitors. The commercial vehicle industry is going through a very interesting phase. In the next couple of years, it will become a level playing field, where all manufacturers will offer similar products, with very limited scope for product differentiation. Factory-built cabs, higher hp power engines, more efficient aggregates will all become a standard feature on Indian trucks. What is going to be different is the after-sales and service support that manufacturers offer. This includes quality of service, availability of spares, overall maintenance cost, driver training, highway breakdown service and driver helplines. All these will be key differentiators in the industry, and these are precisely the areas which MNAL is working on.

Within six months of launch, MNAL truck sales have crossed the 1,000-mark. The company has set an ambitious sales target of 50,000 HCVs and 20,000 LCVs in the next three-four years time. The current product range includes an MN25 6X2 haulage truck, MN25 tipper, MN31 8X2 haulage truck and an MN40 tractor. All these trucks are fitted with 210 hp MAXXFORCE engines. MN 40 comes with an electronic 260 HP option. The company is planning to launch a 25 tonner 6X4 heavy duty mining tipper and a 49 tonne tractor for ODC application, both fitted with 260 hp engine, by the end of the current year.

NEW CUSTOMER FOCUS

Tata Motors has had a very good year in 2010-11, particularly in the commercial vehicle segment. In the domestic market, the company’s commercial vehicles sales increased by 22.7 per cent year-on-year to 458,828 units, with its market share in it of 61.8 per cent.

Overall the CV industry grew by 27 per cent in 2010-11 over the previous year. The growth was supported by sustained economic growth leading to significant revival in exim trade, infrastructure development, pick-up in mining & construction activities, favorable vehicle financing, healthy freight availability, etc

Growth in the MHCV segment has been accompanied by a structural alignment and shift in favor of higher tonnage trucks. Tata Motors has witnessed growth of 31 per cent in the M&HCV segment, of which the tractor trailer segment grew by 59 per cent, multi-axle segment by 35 per cent, tippers by 24 per cent and the 2-axle trucks by around 11 per cent.

Tata Motors commands a 61 per cent marketshare in the overall commercial vehicle segment, but it is going to become increasingly difficult for the company to preserve the marketshare because of competition. From just three CV manufacturers a decade ago, today there are nearly a dozen manufacturers in India, and more are waiting in their wings to enter the fray.

As a market leader, the company is fully aware of this fact and is gearing up in all possible manner to tackle competition. Mr. Vinod Sahay, Head of Sales and Marketing (M&HCV), Tata Motors, spoke in detail on the product and customer support initiatives of the company that help it remain on top.

Starting with the products, Mr. Sahay said: “Earlier we had just one or two products at every GVW, like the 16, 25 or 40 tonne segment. Today we already have minimum two and in many cases more than four products at every GVW, price and performance point across all segments – rigids, tippers and TT. Going forward, we will have a basic product, a mid-range product and at the top end we will have Prima. For instance, in the 40-tonne TT, we have two offerings, one is a mass market product and the other high-end Prima”.