German major gears up for exciting era in Indian CV market
MAN, the German truck and bus major, entered the Indian market in 2006 through a joint venture with Force Motors. Having taken over the JV in 2012 to form MAN Trucks India, the company completed a decade in the market last year, bringing out a couple of new products coinciding with the milestone in its attempt to take the challenge to competitors with renewed thrust and aggression.
In an interview with MOTORINDIA on the sidelines of bC India 2016 held in Gurgaon in December, Mr. Joachim Drees, CEO, MAN Truck & Bus AG, and Mr. Joerg Mommertz, Chairman and Managing Director, MAN Trucks India, talked about MAN’s first decade in the Indian market, plans for the coming years, emergence of India as one of its most important markets globally and more. We bring you excerpts from the interaction:
MAN has completed 10 years in the Indian market. How would you look back at your first decade in the country?
Joachim Drees (JD): We started with our co-operation with Force Motors in 2006 and have now completed 10 years. We had identified India as one of our key growth markets in the commercial vehicle industry early on. One of the key things for us was to bring in the right products, fully localize them and build our presence in the domestic market which we have done quite well. We have also exported our vehicles to the rest of the world where we could sell our CLA product.
What would your top priorities be for the next couple of years in the Indian market?
JD: We are changing the direction and are focused on India because we truly believe the business can be very successful here. The market is changing – cowl chassis are going down, there is focus on safety regulations, emission standards, alternative fuels. These developments are positive for us. We are very positive and have the right technology and quality products. So, given the development of the market, widening our product portfolio, developing technology and expanding our dealer network will be our main priorities.
Joerg Mommertz (JM): Just to add to Mr. Drees, development of our dealer network is very important to secure our presence in the domestic market. The second leg will be to boost our exports using our highly-localized, made-in-India products for our main export markets which we can address with our ‘premium budget’ products.
Where does the Indian market stand in terms of importance for MAN globally?
JD: We just did a big exercise to identify which are our most important markets and which markets we really need to perform and gain market share. We identified certain European markets, but then, of course, there are two major markets for us towards Asia – one is China and the other is India.
We look at India as one of the markets where we can do two things – one is improve our sales volumes locally by upgrading our vehicles and bringing in new products, and the other is to use India as an export base for our global business. So we see India as one of our global markets for the future which is why we have managers, engineering capacity, product development and other activity happening here.
To sum up, we have defined India as one of our important markets in the world and will use it as a base to export products to the MAN network globally.
What about your plans for the bus segment? You have partnered Alma Motors as a first step. What more can we expect from MAN in this space?
JM: Of course, we plan to be present in the bus business here because India is one of the most promising bus markets worldwide. The need for good quality public transport will increase and the demand from customers is going up. Alma Motors is one of our first partners in India, and we are a chassis supplier to them. We currently have a 4×2 chassis and will soon be launching a 6×2 version with air-suspension. We see huge potential for us in this particular market segment and want to address it in co-operation with Alma Motors. We are also open for co-operation with other body builders who would be a good fit for us.
JD: Alma Motors is a partner who fits our understanding of quality, shares our focus areas and values and has good contacts with customers in the local market. Quality for us is one of the most important measures and for a country of the size of India we must have a good bus market.
JM: Yes, quality, safety and comfort for the customer will always be our focus in the bus segment.
MAN tippers have been well-accepted by customers in India. What are your plans to strengthen your presence in other segments?
JM: Yes, we are quite strong in the mining segment and going by customer feedback, we understand we have a very good product in this space. In order to get better market penetration in long-haul transport, we need to expand our network for which we will adopt a parallel strategy – expand into new market segments and parallely develop our dealer network.
JD: We will build on our strengths in the mining segment where we are well positioned and will offer new products in the 50 T segment. I strongly believe India will move similar to China with the construction and mining segments as the base and then move into tractor-trailers which are all MAN’s core strengths.
Can we expect MAN to enter the premium mining segment in India which is currently dominated by the two Swedish brands?
JM: Yes, we want to enter this segment and that’s why we will come up with a 50 T product. We might look at the segment in 2018.
Could you share specific details of your plans to expand the dealer network?
JM: At present, our dealer network is quite strong in South India, and needs improvement in the North where we see a big potential. With dealerships at strategic locations, coupled with good roadside assistance, we would like to guarantee uptime to our customers which depends on the quality of the network and not just the quantity.
JD: Exactly. We will rely on a combination of the quality of our dealer network and new services, which others may not be offering to keep our customers’ vehicle on the road. We have one of the most fuel efficient trucks in the Indian market, so if we keep our focus on the uptime, we will be able to offer the best TCO.
What do you expect from the market in 2017 and what can we expect from MAN during the year?
JD: We have had good growth in 2016 and would like to have further growth in 2017. We see a good opportunity with the BS-IV emission regulations coming in, which will help us. We have new products which we will take to the market. As told, India being the second largest country in the world is a very important market for MAN. We will continue to provide the right product, improve our dealer network and will look to grow further.
As the CEO of MAN, would you have a quick message to share for your customers and other business partners in India?
JD: The message would be: We want to provide the best quality products for our customers with the lowest TCO so that our customers are the most successful ones running trucks in the Indian market.
New CLA EVO range unveiled
MAN Trucks India Pvt. Ltd., a 100% subsidiary of MAN Truck & Bus AG, Germany, has unveiled the CLA EVO range of heavy commercial vehicles at bauma CONEXPO India 2016 held in Gurgaon in December, marking 10 years of MAN Trucks’ presence in India. The new products – CLA EVO 25.300 6×4 BS4 Construction Tipper and the CLA EVO 49.300 6X4 BS4 Tractor Head – have been manufactured indigenously at the company’s plant in Pithampur, Madhya Pradesh, which caters to both Indian market requirements and export to Asian, the Middle East and African countries.
The launch of these new commercial vehicles marks MAN Trucks continued efforts towards changing the trucking landscape in India. Setting new benchmarks in styling and features, the CLA EVO is a combination of power, fuel efficiency, world-class performance, superior technology and safety. Having been extensively tested to global standards and equipped with strong aggregates and a robust chassis frame and suspension, the CLA EVO range can meet the highest operating standards under extreme conditions.
Speaking on the occasion, Mr. Joerg Mommertz, Chairman and Managing Director, MAN Trucks India, said: “Introduction of the CLA EVO series is an important milestone for MAN Trucks India. These vehicles are equipped with 300HP powerful and proven MAN D-0836 common rail engines complying to BS-IV emission norms. The 300HP engine with a well configured driveline offers best in class fuel efficiency. With GST getting implemented soon, vehicles utilization is expected to increase significantly and the CLA EVO range of vehicles with Twin Head Lamps and Day time running lamps will offer utmost safety on Highways as well as in off road applications. We are confident that these vehicles will meet the high standards MAN has set in the Indian market and perform well in the demanding and arduous construction and trailer segments.”
The CLA EVO 25.300 (6×4) tipper is backed by a high performance, BS-IV compliant 300HP MAN D-0836 engine mated to a 9-speed gearbox. Turbo charged, Inter cooled Engine with Electronically Controlled Common Rail System makes it fuel Efficient, environment friendly and most reliable. MAN Planetary Rear Axle with Hub Reduction, inter axle and differential lock provides superior traction and high ground clearance. The product offers maximum comfort and safety for drivers thanks to its aerodynamic cabin with heat and sound dampeners and an optional AC.
The CLA EVO 49.300 (6×4) Tractor Head is equipped with proven MAN D-0836 turbo-charged engine that delivers 300HP, highest in its class of vehicles. A BS IV-compliant engine coupled with a 9-speed gearbox with crawler gear helps the engine run within the optimal rpm range, reducing fuel consumption. Strong rigid Front Axle, Hypoid Rear Axles provide superior traction, unmatched reliability and gradeability. This product offers maximum driving comfort and safety, with a new generation aerodynamic flat roof sleeper cabin with single bed along with heat and sound dampeners.