Mahindra Truck & Bus to emerge full-range CV player by 2019-20

It wouldn’t be an exaggeration to state that the launch of the Blazo at the Auto Expo earlier this year by Mahindra Truck and Bus Division (MTBD), cemented the company’s commitment as serious CV player. Blazo was the industry first to give a replacement guarantee for breakdown, fuel efficiency and service. Without a doubt the whole transport community looked up and took notice.

Speaking to MOTORINDIA, Mr. Nalin Mehta, Managing Director and CEO, MTBD, said: “Post the launch at the Auto Expo, we got numerous telephone calls seeking more information on Blazo. Following which, the orders poured and we were in a position to ramp up the production of Blazo. Six month from the launch and around 500-700 units that have been sold to customers, the feedbacks have been outstanding. We don’t have anybody who has negated the fuel efficiency guarantee of the Blazo. In fact we have been able to achieve the uptime promise we had given and don’t have a single claim so far.”

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Mr. Nalin Mehta, Managing Director and CEO, MTBD

The success story has not only ignited confidence in MTBD’s dealers and financiers but also company’s engineering workforce who are enthused to have a concrete promise that they have delivered. This technological make over (with fuel smart) prepared MTBD to also become BS-IV ready with common rail engine. “Today, not only do we have a technical advantage for the future, we are sort of very buoyant at right time,” expressed Mr. Mehta.

Service network

What created the entire eco system of credibility is the call centre that MTBD created. Call centres literally became the backbone of MTBD’s service centres and the credibility of these call centres as claimed by Mehta has gone up soaring post the launch of Blazo. “We have technical people sitting there speaking seven languages and if a call comes to that centre, it is tracked and followed up till the call is settled and we create a satisfaction code which is given to the customer. Our team cannot close the call until the customer gives that satisfaction code to our team,” he explained.

Not only this, the call centre quizzes the caller about the problem before a mechanic is sent, to check if some issues can be resolved on phone. “If we are unable to solve or help the customer on phone our repository of 1,800 mechanics comes to our help. One of them who is near the customer’s location is sent,” he averred.

Behind the desk assurances were backed by a robust on road mechanics and Authorised Service Centres (ASC) “Apart from our own ASCs we managed to expand through adding local workshops doing trucks, providing them our service management system, training and support. We have also added some auto and farm dealers to our network. We have close to 1,800 mechanics (local mechanics) that have been trained in our products and they are connected to our call centres and thus they become our first responders. Only if there is a major aggregate issue our dealer comes into the picture,” beamed the MD and CEO.

Formed up for future

Since the time MTBD entered into the industry they have been an HCV (25 tonne and above) and an LCV player (3.5 tonne to 6 tonnes) player. To strengthen its market penetration and grow as a full range player, MTBD has invested heavily to come up with Intermediate Commercial Vehicles (ICVs). “We have invested around Rs. 700 crores to create a full range from 8 tonnes to 16 tonnes product range. This very investment will not only give us a range of ICVs but also some new Light Commercial Vehicles (LCVs). We are optimistic that by 2019-20 we will be a full range player,” he asserted.

The new range of vehicles will not only give MTBD the required full range but also strengthen their dealers, suppliers and boost plant utilization. It also cushions the company against the cyclical nature of the CV industry where some years the HCV are down while sometimes LCVs.

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Speaking about the ICVs and LCVs in detail, Mr. Mehta added: “We are developing two cabins one for IVC and one for LCV. ICV is going to be an on an all new chassis as we don’t have the product and we are developing an engine. That engine will also go also in many other vehicles. We will also have a smaller MWM Engine which will go in MCV – higher end of ICV. The smaller cabin will go on LCV; we will do significant modifications in the current chassis and do a lot of modernization, while continuing to use the same engine, gear box and some suspensions as a carry over. All this will give us a brand new LCV, with all the advantages of existing LCV, with modernisation to the cabin, better ride and handling, comfort and along with a full new range of ICV.

Strong customer connect

MTBD’s tryst with customer satisfaction has come on the back of relentless initiatives like ‘Transport Excellence Awards, IIM-Mpower Program, Scholarship Programmes for daughters of truck drivers and a lot of good will. “We are building a long term equity with the transport industry at all levels that reinforces our commitment to the transport industry as a business as well as a fair business where we have a give and take,” he believed.

The proof of the pudding is in the repeat sales that MTBD claims it has been getting. “We have repeat sales which range in between 30-35 per cent which means that every third truck that we sell is a repeat purchase. It is a strong barometer of our customer engagement programmes and the level of customer satisfaction achieved,” he revealed.

In a nutshell a strong and durable product, efficient service network and robust engagement programmes are paving way for the growth of MTBD. “We are now close to 4 per cent in HCV segment and double digit in LCV segment. We would want to double our market share in the next two years. It will also be the time for the launch of ICV which should peak customers interest in our wide product range,” concluded Mr. Mehta.