Mahindra Trucks and Buses (MTB), one among the recent entrants and challengers in the Indian trucking sector, has been focusing on expanding its product range with new launches and widening its sales and service network parallely. The company has implemented some out-of-the-box ideas – Transport Excellence Awards, MPower Program and Mentors’ Summit, to name a few – in its effort towards providing new dimension to the trucking fraternity and has been quite successful in doing so. With the CV segment picking up, it will be interesting to see the returns MTB gets for its differentiated efforts. Mr. Nalin Mehta, Managing Director & CEO, Mahindra Trucks and Buses, outlines his expectations for the days ahead.
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Business in 2014
With the reduction in excise duty and positive sentiments created by the new Government, overall HCV TIV has grown by 42 per cent in 2014 and the MTB volume has taken a growth of 67% inline. Positive decisions in the mining sector have given a boost to MAV tipper growth of 13 per cent. With the Torro25 Bogie Tipper launch and other tipper variants, MTB volumes have significantly grown by 73% in tippers. Stricter ban on overloading is contributing to the increasing demand for higher GVW payload vehicles (e.g., 31/37 tonners), resulting in TIV growth of 40% in MAV Cargos.
New variants of Truxo31 170 hp and Truxo25 170 hp have received very positive response from the market and contributed to the MTB volume increase of 64 per cent. The fantastic response for TRUXO 37 (best-in-class 37T product in the market) pilot project has given a further boost to the MTB cargo range. Growing demand for energy is giving a push to the petroleum and coal sector. Coal & gas is playing major role in tractor movement resulting into healthy growth in Tractor TIV by 116% in 2014. MTB Traco35 is well accepted in POL/Gas transportation, and Traco40 260hp is getting a pull from the coal segment for Tip Trailers, together recording a growth of 67% in tractor trailers for MTB.
Major plans for 2015
The following new products are planned:
• TRUXO 37 – best-in-class Payload & FE Truck in Category (after successful field evaluation response)
• TRACO 49 – best-in-class performance.
Expansion in pan-India network to cover over 2,800 touch points
Expectations from CV industry in 2015
• With the new stable government at the Centre, we have already seen signs of improvement, be it infra growth, coal block allocations, Swatch Bharat Yojna.
• CV industry is poised for a healthy growth. HCVs have already seen signs of improvement.
• GST would be a game-changer. Implementation of GST will lead to fewer State border issues and lesser documentation challenges and delays. GST will bring in benefits of unified market leading to a cut-down on various categories of taxes.
• Positives of GST will lead to the hub and spoke model necessary to increase efficiencies and reduce transit.
• Reduction in excise sops will have its definite impact on prices and demand for newer vehicles.
Industry policies & developments expected in 2015
• Cash for Clunkers – A scheme designed to remove very old polluting vehicles from road & paying owners/transporters for the same as a subsidy for new ones. This will boost new vehicle purchases in the coming quarters.
• Make in India, a scheme to boost investments in India and new technology.
Medium- to long-term outlook
The CV industry is poised for a change with new players joining the foray, demanding stricter regulations, emission norms and other dynamics.
Positive developments happening in areas like:
• Mining industry, coal requirement, road, irrigation and construction sector will give a boost to the tipper segment.
• Stricter overloading monitoring, rapid urbanization, overdue replacements, infra development, cement industry growth, etc., will lead to higher demand for haulage products
• Increase in transportation of Non POL, Cars & UV’s, Cement, Replacement, Port traffic will lead to increase in Tractor Trailer demand.
All this will boost the Indian economy, especially the CV growth.