Monday, October 8, 2012

Indian CV Market - Bharath Benz, Scania,

For Bharath Benz (Bh Bz, don't want to confuse with BB-Blackberry, for obvious reasons), it is their proverbial 'moment of truth'. 

After so many months' research, planning and execution, it is time to deliver the 'baby' ! And the CV industry is eagerly waiting! 

Across all product categories, we have a fancy for anything 'new'. Bh-Bz is new. Plus it is 'phoren' (foreign), at least its pedigree. How much of it is lost in "translation" to Indian market, needs to be seen. After all, there are people who drive CV's on simple kerosene too !!

TIMING: With the UPA-2 Government finally launching the much-awaited "Reforms-2", the share market sentiment picking up, monsoon deficit almost wiped out, quality of highways improving, more investments promised in infrastructure,  FDI in retail ( conditions of backward infra development), etc., Bh-Bz could not have asked for a better time to launch their premium vehicles.

Benz seem to carry some negative vibes, for their cars in India. Transporters can be very finicky in their expectations from Bh-Bz. And, that expectation management is going to be the single most important challenge for the new manufacturer. More so, as the entire range of commercial vehicles is being planned to Indian market.

The market is ready for such a brand. But, Bh-Bz need to ensure savings in cost and after sales service, as per their promise. 
Though they have tied up with few key banks/financiers, that may be a critical factor, which could tilt the market in either way. 

You can count of Tata & Leyland, most active in the mass-segment to take the fight to the den (of Bh-Bz), especially with their in-house financing options. 

CV Industry can expect some action in the coming months. If Bh-Bz focus on the basics, the wonderful community of transporters with embrace them with love & respect. Else.... the clock may continue to click on...

Bh-Bz may dream of 'toppling Tata & AL'. But from the industry perspective, we will be more keen on the value they bring to India's CV industry. 

Lot of truck operators refer to Tata trucks as 'Benz', being the old connection. The moot question is : 'How much of this Benz will be Bharath' ?

But Scannia plans to launch too : will invest Rs 250 cr (only), will set up facility in Bangalore ( the new Pune?) and assures better fuel efficiency!! Plans to enter both trucks & buses, starting from 2014-15 !
 


Biblio:  
  1. Can BharatBenz topple Ashok Leyland and Tata Motors in the truck market? http://articles.economictimes.indiatimes.com/2012-09-30/news/34164589_1_bharatbenz-trucks-marc-llistosella-daimler-india-commercial-vehicles
  2. Daimler to launch light duty trucks in India - Business Std        http://www.business-standard.com/india/news/daimler-india-to-launch-light-duty-trucks/189557/on
  3. Scannia banks on fuel edge edge of trucks http://www.telegraphindia.com/1121001/jsp/business/story_16038102.jsp#.UHQMXCx26Fd

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