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BharatBenz Sales Training

Welcome…
Bangalore, Trichy,
Basic, Advanced & Expert
Salem, Coimbatore,
Vijayawada,Madura
i, Vizag
18th July’2012
 Retail Sales Training

• Commercial Vehicle Industry

• CV Segmentation & Applications
• Competition Products
• BharatBenz Trucks
• Operating Economics
• Selling Skills

16th July’2012 2
1

Contents
1 Commercial Vehicle Industry
2 CV Segmentation & Applications
3 Competition Products
4 BharatBenz Trucks
5 Operating Economics
6 Selling Skills

16th July’2012 3
1.2.1

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

6 Selling Skills

16th July’2012 4
1.1

Truck Basics: Overall

16th July’2012 AE 5
1.1

Truck Basics: Configurations

Driven or
6x
2
Live Axle
6 Wheel 2 Driven Wheel
Wheel Ends
Ends Ends
4x2 4x2

6x2 6x2

6x4 8x2

8x2 10x4

16th July’2012 BA 6
1.1

Truck Basics: Dimensions and Wheel Base

Overall Height (OAH)

FOH: Front Overhang
ROH: Rear Overhang
AOA: Angle of Approach
AOD: Angle of Departure

AOA AOD

Wheel Track Front FOH Wheel Base ROH

Overall Width (OAW) Overall Length (OAL) Wheel Track Rear

16t R/C 4x2 25t R/C 6x2 or 6x4 31t R 8x2 Lift Axle

A WB B A WB B C D A WB B C D E

31t R/C 8x2 or 8x4 Twin Steered 40t TT 4x2 49t TT 6x2 or 6x4

A B C WB DE F WB A WB B C D
A B

16th July’2012 BA 7
1.1

Truck Basics: Wheel Base – DICV  CMVR

DICV: 25t R/C 6x2 or 6x4 MODEL DICV WB CMVR WB
711 R 3,350 3,350
711 R 3,760 3,760
914 R 3,760 3,760
914 R 4,250 4,250
A WB B C D
914 R 4,800 4,800
CMVR: 25t R/C 6x2 or 6x4 1214 R 3,760 3,760
1214 R 4,250 4,250
1217 C 3,760 3,760
1617 R SL 4,800 4,800
WB
1617 R SL 5,600 5,600
A B C D
1617 R SL 6,700 6,700
DICV: 31t R 8x2 Lift Axle 2523 R 4,500 5,175
2523 R 5,700 6,375
2523 C 3,600 4,275
2528 C 3,600 4,275
WB B C D E
3123 R 5,100 5,775
A
3123 R 5,700 6,375
CMVR: 31t R 8x2 Lift Axle
3128 C 4,500 5,175
4023 T 3,600 3,600
4028 T 3,600 3,600
4928/ 6x2 3,300 3,975
A WB B C D E 4928/ 6x4 3,300 3,975
16th July’2012 BA 8
1.1

Truck Basics: Central Motor Vehicles Rules

(CMVR)Maximum Limits for a truck Length, Height, Width and Rear Overhang

Max.3.8 Mts (12.5 Ft)

For Tractor Trailers (Containers)

Max OAH  4.2 Mts
OAH: Overall Height
Rear Overhang
Max 60% of WB

OAL: Overall Length OAW: Overall Width

Max.12 Mts (39.4 Ft) Max.2.6 Mts (8.5 Ft)
Tractor Trailers (Regular) Max OAL  16 Mts: TT’s ( ODC Dimensional Cargo)  18 Mts

National Permit: Regular goods National Permit: Hazardous goods

1: Vehicle should be painted in DRY LEAF BROWN color 1:Vehicle should be painted in DRY LEAF
2: Broad White border on both sides of vehicle of 30 cms BROWN color
3: National Permit written on both sides with in a circle of 60cms 2: Tanker Body should painted in white
diameter. 3: A dry leaf brown ribbon of 5 cm around
4: NP valid states in blue letter on white should be carried in front top. the middle of Exterior
5: Earlier Minimum 3/4 states – Now All India (any state)
4: Driver’s Cabin in Orange color
6: Age of vehicle should be less than 12 years (& for MAV-15years)

16th July’2012 BA 9
1.1

Truck Basics: Weights (GVW, ULW, Payload etc.)

GVW
(Gross Vehicle
Weight)
+ = GVW
Empty Truck Weight Weight of Load Total Weight

GCW
GCW
(Gross
Combination
Weight)
Tractor
Weight
+ +
Empty Trailer Weight
Weight of Load
= Total Weight (All)

ULW
(Unladed
-- = ULW
Weight) Total Weight (GVW) Weight of Load Empty Truck Weight

PL
(Pay Load) -- =
Total Weight (GVW) Empty Truck Weight (ULW) Carried Load
Payload

Front Axle Weight Rear Axle Weight

Axle (FAW) (RAW)
Load on Front Axle  Load on Rear Axle 
16th July’2012 B 10
1.1

Truck Basics: Axle Weights (Load on Axles)  Max

GVW/GCW
Trucks
Truck 6t (3 Wheels*) Truck  12t Truck  16.2t
*CMVR rules for
3 wheels. 1 tyre
only in the front
and 2 tyres on
rear axle
3t 6t 6t 6t 6t 10.2t

Truck  25t Truck  31t Truck  37t

6t 19t 6t 6t 19t 6t 6t 6t 19t

Tractor Trailer  26.4t Tractor Trailer  35.2t Tractor Trailer  40.2t

Tractor Trailer
Single axle trailer Tandem axle Tridem axle trailer
trailer

6t 10.2t 10.2t 6t 10.2t 19t 6t 10.2t 24t

Tractor Trailer  35.2t Tractor Trailer  44t Tractor Trailer  49t

Single axle trailer Tandem axle trailer Tridem axle trailer

6t 19t 10.2t 6t 19t 19t 6t 19t 24t

Depicts Single tyred axle Depicts dual tyred axle

16th July’2012 AE 11
1.1

Truck Basics: Indian CV Industry categories (Based

on GVW)
SIAM

LCV M & HCV

HCV
definitio
Market

MCV

ICV
n

LCV

SCV

3.5t 7.5t 9t 12t 16.2t 25t 31t 35.2t 40.2t 44t 49t
GVW / GCW 
DICV

LDT & MDT HDT

Abbreviations: HDV – Heavy Commercial Vehicle

SCV – Small Commercial Vehicle M&HDV – Medium & Heavy Duty
Vehicle
LCV – Light Commercial Vehicle
LDT – Light Duty Truck
ICV – Intermediate Commercial Vehicle
MDT – Medium Duty Truck
MCV – Medium Commercial Vehicle
HDT – Heavy Duty Truck
16th July’2012 BAE 12
1.1

Truck Basics: Field - Common / Popular terms

(LDT’s) 6T R Truck 7.5t R Truck

*6.25T GVW Truck *3.5T Payload Truck *7.5T GVW Truck *4T Payload Truck ……
9t R Truck 11/12T R Trucks
* 4 tyre truck *407 …….

*9T GVW Truck *6T Payload Truck *12T GVW Truck *8T Payload Truck …..
*Canter ……
16th July’2012 B 13
1.1

Truck Basics: Field - Common / Popular terms

(HDT’s) < 16t R Truck 25t R Truck

*16t GVW Truck *10t Payload Truck *25t GVW Truck *16t Payload Truck *10
31t R Truck Tyre Truck
35/40/49t TT ( Tractor Trailer)
* 6 Tyre Truck *Single Axle HCV
Truck ….. *Double Axle HCV Truck *MAV: Multi Axle
……

*31t GVW Truck *21t Payload Truck *12 *35,40,49t GCW Tractor *24,28,35t
Tyre Truck Payload Tractor
16th July’2012 B 14
1.1

Truck Technical – Basic Parameters

Engine Power Engine Torque Gear Box (Transmission)
Power – Unit of Measurement Torque – Unit of measurement
HP  Horse Power Kw  Kilowatt
Kgm  Kilogram Meter Rotational Gears Nos
(Energy Rate Transfer) Nm  Newton Meter Force 5, 6, 8, 12,16 ....

1 Kw = 1.34 HP 1 Kgm = 9.81 Nm Gears Box Types

GBS 30, 40, 60,80….
PS-Preferde Starke Flat Torque: RPM range at
Brake HP (Obsolete) which the torque is almost flat (Represents Torque Capacity)

Gradeability (Climbing Ability) Pickup (Acceleration) Clutch Disc

Clutch Types
Asbestos or Ceramic

Clutch Dia
300, 350, 380 ….
Quick Starting Ability (Represents outer diameter)
E.g.: 45 Deg  (Tan 45) = 100% (Time taken from 0 km/h to 30… km/h)

Turning Circle Diameter (TCD) Air Brake Loading Span (Deck Length)
Turning Ability Brake system working Length of chassis available behind
U-Turn / Steep Turn with Air Pressure Cabin for Load body
Small TCD Other Brake Type
•Ease in ‘U’ turning
•Hydraulic Brake
•Enter narrow lanes
•Easy Maneuverability (System Works
•Less forward, back’s with brake oil)

16th July’2012 BA 15
1.1

Truck Technical – Basic Parameters - Gradeability

16th July’2012 AE 16
1.1

Truck Technical (Basic) - Power driveline in Trucks

Powertrain parts:
•Engine
•Gearbox
•Axle & Wheels

Engine : Gearbox : Axle & Wheels :

• Engine: Generates • Transmits torque from • Differential is key in a
power engine to axle as Axle
• (FIP) Fuel Injection required • Transmits power to
pump-Injects fuel into • Types: Manual & wheels & allows each
engine: Types: Inline, Automatic. wheel to rotate
Rotary or Electronic • Models: 5,6,8,12,16 separately at different
• Alternator: Supplies gears speeds
power to vehicle & • Rating: As per capacity • Crown Wheel Size
charges battery to handle torque. (diameter) is based on
• Compressor: Supplies 40,60,70 or 80 power.
pressurized air for brake • 1st gear max Pickup, low • Ratio of crown to wheel
system and auxiliary speed helps in pickup vs.
purpose • Top gear low Pickup max mileage
• Radiator: Cools the speed • Axle shaft transmits
coolant and keeps • PTO is attached for power from differential
engine temperature at tippers to wheel ends
optimum level • Clutch Plate: • Wheel hub is part of
• Oil Sump: Stores oil Facilitates gear wheel drum (has brake
which is used for
16th July’2012 changing B smoothly.
A shoes inside) 17
1.1

Truck Technical (Basic)– Chassis, Suspension, Brakes &

Steering Chassis (Frame) Suspension (springs)
• Frame: Long .or. Side member, • Front spring Type:
Cross members Elliptical/Parabolic-new
• Strength defined by Length, • Rear spring suspension Type:
Width & Thickness •:Leaf Springs (Elliptical)
• No of cross members also defines •Reverse / Bogie Suspension
strength •Air Suspension
• Gap between two side members is • No off leafs and each leaf width,
important for body mounting thickness determines strength of
• Type: Straight chassis or joggled suspension
chassis • Length/span is related to driving
• No drilling of holes are permitted comfort
Brakes Steering
on chassis members (no warranty) • Shock absorbers are given only
• Brake System: Hydraulic (LDT) / • Manual/mechanical
front Steering
Air (HDT) • (LDT’s)
Bend / curve is called the camber
• Air brake is also called as S-Cam • angle.
Power Steering (HDT’s) > 16t
brake (Mandatory)
• Brake shoe material & lining area • Effort required to turn on full loads
defines the life and functionality of is easy with power steering.
brake system • Types: Fixed and Telescopic
• Hand brake also called as steering
parking brake. • Telescopic steering: Can be
• Auxiliary brake  Engine adjusted in two directions –
exhaust brake Forward and backward + upward
16th July’2012 BA 18
1.1

Truck Technical – Engine: Key aggregates & 4-

stroke system

Vide
o

16th July’2012 BAE 19

1.1

Truck Technical – Engine: Cooling System

Vide
o

16th July’2012 AE 20
1.1

Truck Technical – Engine: Lubrication System

Vide
o

16th July’2012 AE 21
1.1

Truck Technical – Engine: Air Intake System

Vide
o

16th July’2012 AE 22
1.1

Truck Technical – Engine: Exhaust System

Vide
o

16th July’2012 AE 23
1.1

Truck Technical – Engine: Fuel Injection system

Vide
o

16th July’2012 AE 24
1.1

Truck Technical – Gear Box: Transmission Function

Vide
o

16th July’2012 AE 25
1.1

Truck Technical – Gear Box: Transmission Function

Popular in: Popular in:

Commercial Vehicles High End CV’s
Tata, ALL, Eicher MB Actros, Prima etc
AMW, Navistar etc
Premium Cars
Standard Cars I10, A-star, Endavour,
Alto, Swift, Santro, City, Benz etc
Indica,
Vide
o

16th July’2012 AE 26
1.1

Truck Technical – Gear Box: Clutch Types

Vide
o

16th July’2012 AE 27
1.1

Truck Technical – Steering geometry & Power

steering

Vide
o

Vide Vide
o o

16th July’2012 AE 28
1.1

Truck Technical – Chassis

Chassis Long Member (Side Member)

Rear Cross Rear Axle Suspension Cross Engine/GB Front Cross

Member Cross Mounts Members mount Cross member
Member member
RUPD FUPD

Chassis Functions Chassis Long members

Accessory Mounts on •Chassis lengths
are made of C section.
chassis • Act as basic frame of
vary with respect
vehicle a – Depth
to wheelbase
• Transfer all loads on a w – flange width
t – frame thickness •Load body length
the to the tyres t
Air tanks Suspension Spare w is determined by
through suspension
wheel
• Locate and mount Other sections used length of chassis
aggregates in Chassis are
•Box Section
• Provide rigidity •I section

Chassis frames are generally fastened with bolts.

Battery
Riveting is also done at crucial joints

16th July’2012 BA 29
1.1

Truck Technical – Suspension

Semi Elliptic Leaf Springs Semi Elliptical with equalizer link/Bell Crank Lever
 Multiple leaves  Each axle has semi elliptical leafs
 Have semi elliptical profile  Both are Linked for equal loads
  More load carrying capacity
Mounted by U Bolt at axle centre
 Balance rod is above chassis
 Mounted at ends to chassis  Load body floor above the rod only
Parabolic Leaf Springs Balancer type Suspension
 Multiple leaves with parabolic profile  Two axles linked by balancer lever
 Leaves are thick & have less Qty  No projection above chassis height
 Leaves don’t rub with each other  Lesser Moving parts
 Lighter and more comfortable ride  More load carrying capability
 Thicker at centre & taper towards end  Lower Maintenance
Air Suspension Bogie type
 Have Air bellows instead of springs  One Spring Set between 2 Axles
 Air bellows between axle & chassis  More robust design (reverse)
 Are supplied with compressed air  Larger load carrying ability
 Comfortable ride qualities  Lesser Maintenance
 Ride height variation possible  Suited for off road conditions
Twin Steered Axles Lift Axle
 2 steered axles in front  Can be lifted when load is less
 Has good load distribution in vehicle  Automatically drops at no load
 Each axle is or load less than a limit
 Can have either elliptical or parabolic  Reduces tyre wear when not in use
suspension  Air suspended axles
16th July’2012 BA 30
1.1

Truck Technical – Tyre Basics

1 Types 2 Patterns

Rib Tyre Lug Tyre Rock Tyre

Nylon / Bias Radial Radial (front) (rear) (tippers)
/ Cross ply with Tube Tubeless

3 Tyre Rim Dia.

Width
(inches) 10.00 x 20 x 16 PR (inches)
Tyre
Nomenclat 10.00 R 20 x 16 PR PLY
Radial
ure Rating
4 Sizes 5 Retreading
Nylon / Bias Radial Trucks
7.50 x 20 x 12 PR
8.25 x 16 x 16 PR - LDT’s Removing Removing Rubber Layer
worn threads Foreign objects Coating
8.25 x 20 x 16 PR
9.00 x 20 x 16 PR 9.00 R 20 Buses
10.00 x 20 x 16 PR 10.00 R 20 M/HDT Rigid’s
Vulcanizing Thread Adding New Adding Gum
11.00 x 20 x 18 PR 11.00 R 20 Tipper/TT’sTo Tyre Body Tyre Thread Cord

16th July’2012 BA 31
1.1

Truck Basics - Common modifications done in a New

Truck Chassis & Suspension Related

• Metal strip added over chassis • Suspension leafs are added,

long member below body: Overall upto 4 in front and rear: Capability
strength in vehicle to run on bad road & Overloading
• Rear extension done in chassis • Re-cambering (increase in bend)
for longer length of Body: Increase done in front & rear leafs:
in volumetric capacity of body. Increase in overloading capacity
• Holes are drilled on chassis top • Fish plates with bolts to avoid
for mounting the load body: Avoid buckling of chassis: Increase in
slippage ofWill
body &they
to getbe required
rigidity. in our BharatBenz
overloading capacity
trucks ?
Electrical Related & Other

• Single Wire tapping from Battery • Air horn is installed by taking

for connecting audio system: Air from Air Tanks: Facilitates loud
Avoiding expense on voltage horns for manoeuvring traffic
converter
• Modifications on exhaust pipe
• Headlamp wiring is replaced to front and wiring changed for
with duty wires: Facilitate high compliance with CCOE (Tankers)
wattage head lamp bulbs
• Additional fuel tank welded to
• Wires are cut and tapped at will existing tank for increase in
at locations for various usages: capacity: facilitate longer filling
Facilitate
Other Modifications god lamp,
Include: Fan etc.
Helper time. washer spacer between
bracket Strengthening, Adding
wheel
16th discs etc.
July’2012 BA 32
1.1

Truck Basics – Conversion Factors, Densities &

Weights Common Conversion Factors Densities

Length Volume Densit

y Weight per
1foot = 0.3048 mts 1 mts = 3.28 feet 1 lts = 1000 cc 1cc = 0.001 lts Material
(kg/m 1 liter
3)
1 mile = 1.6 kms 1km = 0.621 mile 1 lt = 0.035 cft 1000 lt = 1 m3
Milk 1036 1.036 kg
1 inch = .0254 mts 1 mts = 39.36 inch 1 cft = 0.028 m3 1 m3 = 35.31 cft
Water 997 0.997 kg
1000 mts = 1 km 100 cm = 1m 1 cft = 0.01 Petrol 737 0.737 kg
1 brass = 100 cft
brass Diesel 832 0.832 kg
Temperature, Energy & Density Power & Torque Edible oil ~900 ~ 0.91kg
LPG 480 0.480 kg
1 degC = 33.8 1 degC = 274 deg 1hp = 0.746 kW 1 kW = 1.340 hp
degF K Bitumen 1000 1 kg
1 PS = 0.99 hp 1 hp = 1.01 PS
Blue Stone 1760 1.76 kg
1 BTU = 0.293 W- 1 KWhr = 1000
1 Nm=0.10196
hr Whr 1kgm = 9.81 Nm Coal
kgm 896 0.896 kg
(Anthracite)
1 hp hr = 2544 1700-
1 BTU =0.293 Whr Over Burden 1.7 - 2.2 kg
BTU 2200
2200–
1 g/cc=1000kg/m3
Pressure 1 kg/m3=0.001g/cc Weights Iron Ore Weights
2800
2.2 – 2.8 kg

1 atm = 1.01325 bar 1 atm = 101325 Pa 1 quintal=100

1kg = 1000 g Loading form Weights
kgs
1 bar = 100000 Pa 1 bar = 100 kiloPa Gas Cylinder ~ 31.2 kgs
1 kg = 35.27 oz 1 ton = 1000 kg
Gas Cylinder (filled) 30 kgs
1 PSI = 6.89 kiloPa
Gunny Bag
Vol of material loaded(in cft)*0.028*density of material(kg/m3) = weight of the Cement bag 50 kgs
loaded material (tonnes)
Crate (12 bottles)

Note: cc = cubic centi meters, cft = cubic feet, m3 = cubic metres, W = Watt, Pa = Pascal, atm = atmosphere, sq = square, oz =
ounce
16th July’2012 BA 33
1.2

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

6 Selling Skills

16th July’2012 34
1.2.1

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.2.1 Categories & Segments
1.2.2 Competition Players, Spread, Models Range
1.2.3 Load bodies Landscape
1.2.4 BS3 to BS4
1.2.5 Roads, Customers, Drivers Landscape
1.2.6 Warranty, Registration, Insurance, Finance
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

16th July’2012 6 Selling Skills 35

1.2.1

Indian CV Industry: Categories (Based on GVW)

SIAM

LCV M & HCV

HCV
definitio
Market

MCV

ICV
n

LCV

SCV

3.5t 7.5t 9t 12t 16.2t 25t 31t 35.2t 40.2t 44t 49t
GVW / GCW 
DICV

LDT & MDT HDT

Abbreviations: HDV – Heavy Commercial Vehicle

SCV – Small Commercial Vehicle M&HDV – Medium & Heavy Duty
Vehicle
LCV – Light Commercial Vehicle
LDT – Light Duty Truck
ICV – Intermediate Commercial Vehicle
MDT – Medium Duty Truck
MCV – Medium Commercial Vehicle
HDT – Heavy Duty Truck
16th July’2012 BAE 36
1.2.1

Indian CV Industry: Popular Segments (Based on

5t R (4-tyre Truck) 7t R 9t R
GVW)
LDT/MDT

SFC 407 E 10.59 E 10.70 LPT 709 E 10.95 LPT 909

12t R 16t R (4x2) 9t C (Tippers)

lpt 1109 E 11.10 LPT 1613 Jumbo 20.16 10.80 909

25t R (6x2) 31t R (8x2) 37t R (10x4)
Trucks
HDT -

LPT 2516 2214 E 35.31 LPT 3118 LPT 3723 U3723

16t C (4x2 Tipper) 25t C (6x4 Tipper) 31t C (8x4 Tipper)
Tippers
HDT-

SK 1613 1613 LPK 2516 2516 LPK 3128.k FM 400

35t TT (4x2 & Trailer-2Axles) 40t TT (4x2 & Trailer-3Axles) 49t TT (6x2)
Tractors

LPS 3516 U 3518 4023 T LPS 4018 4923 T LPS 4923

16th July’2012 BA 37
1.2.2

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.2.1 Categories & Segments
1.2.2 Competition Players, Spread, Models Range
1.2.3 Load bodies Landscape
1.2.4 BS3 to BS4
1.2.5 Roads, Customers, Drivers Landscape
1.2.6 Warranty, Registration, Insurance, Finance
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

16th July’2012 6 Selling Skills 38

1.2.2

Indian CV Industry: Players / Manufacturers

Earlier to 1997 1997 to 2011 2011 & Beyond

LDT DCM
Toyota
Allwyn

New
Nissan

HDT

New

Hig
h
End

16th July’2012 BAE 39

1.2.2

Indian CV Players / Manufacturers – Products

Spread
Company >5t 5t 7t 9t 12t 16t 25t 31t 3
Tata 

Leyland 

Eicher 

AMW 

Navistar 

MAN 

Hino 

Ural 

SML 

Volvo 

MB 

Scania 

Kamaz 
Rigid / TT Tipper
16th July’2012 BAE 40
1.2.2

Key CV Players / Manufacturers – Key Models

Range
Company >5t 5t 7t 9t 12t 16t 25t 31t 3
2518 3118 4018 4923
ACE 909 1613
Tata  407 709 1109 2518 3128 3518 4028 4928
207 909 1616
2523 Prima Prima Prima

2214 3116il 4019il

1616il 3518 4923
Leyland Dost
 1012 1212 2516il3118xp 4023
1616 U3518 U4923
2518 U3123 U4023

10.90 15.16 30.25

10.50 10.75 11.10
Eicher  10.95 20.16 FE/XP 35.31 40.40
10.59 10.80 11.12
10.90 Terra16Terra25

2518
3118
AMW  2518 4018 4023
3118
2523

MN25
Navistar  MN31 MN40
MN25T

25.180
16.180 31.220
MAN  25.220
16.220 31.280
25.280

* Rigid * Tipper
16th July’2012 BAE 41
1.2.2

CV Player: TATA – Products (Rigid)

7t Segment, 709EX 9t Segment, 909EX 11t Segment, 1109EX

GVW : 7t Wheel Base : 3800mm GVW 9.6t Wheel Base 3400, 3800 GVW 11.9t Wheel Base 3600, 4200
Payload : 4.5-4.7t 4600mm Payload 6.5-6.8t mm Payload 8.3t mm
Power : 125PS Deck Lengths : ~3.7 Power 125PS Deck Lengths 14-16ft Power 125PS Deck Lengths 16-19ft
Gradeability mts Gradeability Variants SFC, LPT, Gradeability22% Variants EX, EX2,
: 20% Variants : SFC, LPT, Tyres 8.25X16 HSD, FSD Tyres 8.25X20 HEX2,HSD
Tyres : 7.50X16 EX

16t Segment, LPT 1613 25t Segment, LPT 2518 31t Segment, LPT 3118

GVW 16.2t Wheel Base 4225, 4855, GVW 25t Wheel Base 4880 mm GVW 31t Wheel Base 5205mm
Payload ~9t 5195 mm Payload ~16t Payload ~24t
Power 137hp Deck Lengths Power 178 hp Deck Lengths ~24ft Power 178hp Deck Lengths
Gradeability Variants LPT, SE, Gradeability Variants LPT, Cowl, Gradeability22% Variants Cowl, LPT,
18.2% HSD, Cowl 18.7% HSD Tyres HSD
Tyres 10.00X20 Tyres 10.00X20 10.00X20

16th July’2012 BA ** - Only popular models are considered 42

1.2.2

CV Player: TATA – Products (Tractor &

Construction)
35t Segment, LPS 3518 40t Segment, LPS 4018 49t Segment, LPS 4923

GCW 35.2t Wheel Base 3200mm GCW 40.2t Wheel Base 3200 mm GCW 49t Wheel Base 3880mm
Payload Config 4x2 Payload Config 4x2 Payload Config 6x4
Power 178hp Trailer 40 ft, Power 178hp Trailer 40 ft, tridem Power 213hp Trailer 40 ft, tridem
Gradeability tandem axle Gradeability axle Gradeability axle
18.1% Variants Cowl, Cab 19% Variants Cowl, Cab 23% Variants Cowl, Cab
Tyres 10.00X20 Tyres 10.00X20 Tyres 10.00X20

9t Segment, LPK 909, 4x2 16t Segment, SK 1616, 4x2 25t Segment, LPK 2518HD, 6x4

GVW 9.6t Wheel Base 2775mm GVW 16.2t Wheel Base 3225, 3625, GVW 25t Wheel Base 3880, 4880
Payload Payload 4225 mm Payload mm
Power 125PS Cu. capacity 4.95 CuM Power 155hp Cu. capacity 4.5, 6.5, 8.5, Power 178hp Cu. capacity 12, 4, 20
Gradeability Gradeability 10 CuM Gradeability CuM
28% Variants Box 26%, 31% Variants Box, LPT, SK 28% Variants LPK, HD,
Tyres 8.25X16 Tyres 10.00X20 Tyres 10.00X20 Box, Rock

16th July’2012 BA ** - Only popular models are considered 43

1.2.2

CV Player: TATA – Products (Prima)

40t Segment, Prima 4028S 40t Segment, Prima 4038S 49t Segment, Prima 4938S

GCW 40.5t Wheel Base 3460mm GCW 40.5t Wheel Base 3460 mm GCW 49.5t Wheel Base 3890 mm
Power 266hp Config 4x2 Power 370 hp Config 4x2 Power 370hp Config 6X4
Gradeability Trailer Tridem axle Gradeability Trailer Tridem Gradeability 31% Trailer Tridem axle
25% Variants None 35% Variants None Tyres 315/80 Variants None
Tyres 315/80 Tyres 315/80 R22.5
R22.5 R22.5

25t Segment, 2528K, 6x4 25t Segment, 2538K, 6x4 31t Segment, 3138K, 8x4

GVW 25t Wheel Base 4570mm GVW 25t Wheel Base 4570 mm GVW 31t Wheel Base 5250 mm
Power 266hp Power 370hp Power 370hp
Gradeability Cu. Capacity 10 Cu M Gradeability Cu. capacity Gradeability Cu. capacity 19Cu M,
32% 45% 57% Rock
Tyres 315/80 Variants Rock, Box Tyres 31/80 Variants Rock, Box Tyres 12R24
R22.5 R22.5 Variants Rock, Box

16th July’2012 BA ** - Only popular models are considered 44

1.2.2

CV Player: LEYLAND – Products (Rigid)

10t Segment, Ecomet 1012 12t Segment, Ecomet 1212 16t Segment, 1616il

GVW 10.9t Wheel Base 2850, 3250, GVW 12.9t Wheel Base 2850,3970, GVW 16.2t Wheel Base 4330,4700,
Payload 3970, 4200 Payload 4200,4750 Payload ~9t 533 4,6250
Power 120hp Deck Lengths11.4, 14, Power 120hp Deck Lengths Power 160hp Deck Lengths
Gradeability 17.2, 19’ Gradeability25.6% 11.4,17,19,22’ Gradeability25.7% 18,20,24,32’
41.1% Variants Cab, HSD, Tyres 8.25X20 Variants Cab, HSD, Tyres Variants XP,XL, Cowl,
Tyres 8.25X16 FSD FSD 10.00X20 FSD

25t Segment, 2516il 31t Segment, 3118 37t Segment, 3723

GVW 25t Wheel Base 4902, 6200 GVW 31t Wheel Base 5200,5700, GVW 37t Wheel Base
Payload ~16t mm Payload ~22t Deck Lengths 24.5, Payload ~2t7 Deck Lengths 24.5,
Power 160 hp Deck Lengths23.5, 32’ Power 180hp 30.5’ Power 226hp 30.5’
Gradeability Variants XP, XL Gradeability Variants XP, XL, Gradeability Variants 10x2,
18.5% Cab, Cowl, 15.03% 3116il 26.83% 10x4
Tyres 10.00X20 HSD, FSD, Tyres 10.00X20 Cab, Cowl Tyres 11.00X20

16th July’2012 BA ** - Only popular models are considered 45

1.2.2

CV Player: LEYLAND – Products (Tractor &

Construction)
35t Segment, 3518, 4x2 40t Segment, 4023XP, 4x2 49t Segment, 4923, 6x4

GVW 35.2t Wheel Base 3300mm GVW 40.2t Wheel Base 3300 mm GVW 49t Wheel Base 3900mm
Payload Config 4x2 Payload Config 4x2 Payload Config 6x4
Power 180hp Trailer 40’, Tandem Power 225hp Trailer 40’, tridem Power 225hp Trailer 40’, tridem
Gradeability axle Gradeability axle Gradeability axle
14.4% Variants NA 14.7% Variants NA 21% Variants NA
Tyres 10.00X20 Tyres 10.00X20 Tyres 10.00X20

16t Segment, 1616, 4x2 16t Segment, 1618, 4x2 25t Segment, 2516T il, 6x4

GVW 16.2t Wheel Base 2920, GVW 16.2t Wheel Base 3607 mm GVW 25t Wheel Base 3810 mm
Payload 3607(XL) Payload Payload
Power 160hp Cu. Capacity 7.5 CuM Power 180hp Cu. capacity 8.5 CuM, Box Power 160hp Cu. capacity 14 Cu M Box
Gradeability Variants 4.5, 6.5 Box Gradeability Variants 10.5 box, Gradeability Variants 14 Cu M
27% 6, 8.5, 10.5 36% 8.5 rock 20% Rock,
Tyres 10.00X20 Rock Tyres 10.00X20 Tyres 10.00X20 16 Cu M box

16th July’2012 BA ** - Only popular models are considered 46

1.2.2

CV Player: LEYLAND – Products (U-Truck)

35t Segment, 3518, 4x2 40t Segment, 4023, 4x2 49t Segment, 4923, 6x4

GVW 35.2t Wheel Base 3300mm GVW 40.2t Wheel Base 3300 mm GVW 49t Wheel Base 3900mm
Payload Config 4x2 Payload Config 4x2 Payload Config 6x4
Power 180hp Trailer 40’, Tandem Power 225hp Trailer 40’, tridem Power 225hp Trailer 40’, tridem
Gradeability axle Gradeability axle Gradeability axle
14.4% Variants 14.7% Variants 21% Variants
Tyres 10.00X20 Tyres 10.00X20 Tyres 10.00X20

16t Segment, 1616, 4x2 25t Segment, 2516, 6x4 31t Segment, U3123, 8x4

GVW 16.2t Wheel Base 3000, 3600 GVW 25t Wheel Base 3900 mm GVW 31t Wheel Base 5250 mm
Payload Cu. Capacity 6.5, 8.5,10.5 Payload Payload
Power 160hp CuM Power 180hp Cu. capacity 14, CuM Power 225hp Cu. capacity 19, 22 Cu M
Gradeability Variants 180HP Gradeability Variants 16 box, Gradeability Variants 19 Cu M box,
27% 25.4% 14 rock 33.5% 22 Cu M box
Tyres 10.00X20 Tyres 10.00X20 Tyres 11.00X20

16th July’2012 BA ** - Only popular models are considered 47

1.2.2

CV Player: EICHER – Products (Rigid LDT&MDT)

<5t Segment, 10.50 6.2t Segment, 10.59 7t Segment, 10.75

GVW 5.4t Wheel Base 3350 mm GVW 6.2t Wheel Base 3350 mm GVW 7.4t Wheel Base 2750, 3350
Payload 3t Deck Lengths 12.3ft, Payload 3.2t Deck Lengths 12.3ft, Payload 4.8t
Power 95PS Variants WB – 2750 Power 95PS 14.1ft Power 95PS Deck Lengths 12’,
Gradeability D. Length - Gradeability Variants 10.59XP Gradeability 14.1’
10’ GVW-7.2t
Tyres 7.5X16 HSD, FSD Tyres 8.25X16 Payload-4.3t Tyres 7.50X16 Variants FSD, HSD

9t Segment, 10.90 11t Segment, 11.10 14.5t Segment, 11.14

GVW 8.7t Wheel Base 3515, 3765, GVW 11.9t Wheel Base 3800, 4300 GVW 14.5t Wheel Base 4255mm
Payload ~6t 4065 mm Payload ~8t mm Payload ~9t
Power 94 hp Deck Lengths Power 93 hp Deck Lengths Power 85Kw Deck Length 17, 19ft
Gradeability 17.2,19.1,20ft Gradeability 14,16.2,17.5ft Gradeability
Tyres 7.50X16 Variants HSD, FSD, Tyres 8.25X20 Variants HSD,FSD, Tyres 9.20X20 Variants CBC, HSD
DSD, Al Box DSD, Al Box

16th July’2012 BA ** - Only popular models are considered 48

1.2.2

CV Player: EICHER – Products (HDT, Tractor &

Construction)
40t16t
Segment, Prima
Segment, 4028S
20.16 25t Segment, 30.25 31t Segment, 35.31

GVW
GCW 16.2t
40.5t Wheel Base 4300,4800,
3460mm GVW 25t Wheel Base 4900,6600 GVW 31t Wheel Base 4700mm
Payload
Power ~10t
266hp Config 4x2 Payload ~17t Deck Lengths 24, 32 ft Payload ~22t
Power 147hp
Gradeability 5340,5840,625
Trailer Tridem axle Power 154hp Variants FE, XP, XPL, Power 154hp Deck Lengths 24ft
Gradeability
25% Deck Lengths18,
Variants None20, 24, Gradeability Cab, Cowl, Gradeability18% Variants Cowl, Cab,
Tyres 24%
315/80 28, 32’ 23% HSD, FSD Tyres HSD
Tyres 10.00X20
R22.5 Variants Cab, HSD, Tyres 10.00X20 10.00X20
FSD

40t Segment, 40.40 Mega, Tractor 16t Segment, Terra 16, 4x2 Tipper 25t Segment, Terra25, 6x4 Tipper

GCW 40t Wheel Base 3485mm GVW 16.2t Wheel Base 3485mm GVW 25t Wheel Base
Payload Config 4x2 Payload Payload
Power 183.3hp Trailer 40 ft, tridem Power 147hp Cu. Capacity 8.5Cu M Power 183.3hp Cu. Capacity
Gradeability axle Gradeability27% Gradeability27%
18.3% Variants Cab Tyres Variants CBC, FBT Tyres Variants CBC, FBT
Tyres 10.00X20 10.00X20 10.00X20

16th July’2012 BA ** - Only popular models are considered 49

1.2.3

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.2.1 Categories & Segments
1.2.2 Competition Players, Spread, Models Range
1.2.3 Load bodies Landscape
1.2.4 BS3 to BS4
1.2.5 Roads, Customers, Drivers Landscape
1.2.6 Warranty, Registration, Insurance, Finance
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

16th July’2012 6 Selling Skills 50

1.2.3

CV Load bodies: Indian configurations

landscape

Fixed Side Drop Side High Side Platform Truck Cement Bulker
Deck Deck Deck

Milk Tanker Petroleum Chemical Bitumen Closed

Tanker Tanker Tanker Container

Reefer trucks Fire Tender Garbage Truck Mounted Two wheeler

Trucks Crane carrier

Box Tipper Scoop Tipper Half Pipe Under Body RMC

16th July’2012 Tipper
BA Tipper 51
1.2.3

CV Load bodies (LDT): OEM’s Current

Configurations. Tata, ALL and Eicher are
focused on Fully Built-up’s

HSD-75%, FSD-20%, DSD-5%

N*  Not clear as of Now N.A.  Not Available
FSD: Fixed Side Deck, DSD: Drop Side Deck, HSD:
16th July’2012 B A High Side Deck 52
1.2.3

CV Load bodies (HDT): OEM’s Current

Configurations. Tata, ALL and Eicher are
focused on CowlsTML
Body Applications
ALL
Competitor Landscape ( Configuration Given as OEM
VECV M&M MAN AMW

[Link] Bodies - Combinations

All N.A. All All N.A. N.A.
• FSD / DSD / HSD
Steel N.A. Steel Yes N.A. N.A.
• Body - Steel / Aluminum
Yes N.A Yes N* N.A N.A
• Floor - Steel / Wooden Floor
Yes N.A. N.A. Yes N.A. N.A.
• Platform Flat Bed - Steel
[Link] - Containers
N.A. N.A. N.A. N.A N.A. N.A.
• Steel / Aluminum
Yes N.A. N.A. N.A. N.A. N.A.
• Refrigerated / Insulated
Yes N.A. N.A. Yes N.A. N.A.
[Link], Bulkers
[Link]
Yes Yes Yes Yes Yes Yes
• Box Body
Yes Yes N.A. N.A. Yes Yes
• Scoop / Rock Body
Yes Yes N.A. N.A. N.A. Yes
• Transit Mixer (RMC)

N*  Not clear as of Now N.A.  Not Available

16th July’2012 BA FSD: Fixed Side Deck, DSD: Drop Side Deck, HSD: 53
1.2.3

CV Load bodies: Usage application

Matrix
(In Rigid 5 Configs contribute 80% of Usage
Rigid
Applications)
Segments Market Petroleum/ Cement, Grains Parcel / Steel/ Iron Coal/Stones Elect FMCG,Construction, Mines
Load Chemical/Milk Fertilizers Courier Coils, Plates Marbles Logistics Minerals Coal/Ore

Half
Body
Full
Body
Flat /
Platform

Cont-
ainer
Tanker
Bulker

Tipper

Specl.*
Appl’n All Unique Segments / Applications

* Special Applications
16th July’2012 BAE 54
1.2.3

CV Load bodies: Cowl v/s CBC v/s FBV’s (Rigid, TT’s &
Construction)
LDT CBC (15) FBT (85%) HDT Cowl (80%) Cab (16) FBT (4%)
Rigid Rigid
CBC (20%) FBV (80%) Cowl (75%) Cab (20%) FBV (5%)
7t R 16t
R
CBC (15%) FBV (85%) Cowl (85%) Cab (12%) FBV (3%)
9t R 25t
R
CBC (10%) FBV (90%) Cowl (75%) Cab (20%) FBV (5%)
12t 31t
R R
HDT Cowl (13%)Cab (13%) FBT (74%) HDT Cowl (5%) Cab (90) FBT (5%)
Tipper TT’s
Cowl (25%)CBC (25%) FBT (50%) Cowl (10%) Cab (90%)
16t 35t
C TT
Cowl & CBC (3% each)FBT (94%) Cowl (5%) Cab (90%) FBV (5%)
25t 40t
C TT
Cowl & CBC (0%) FBT (100%) Cowl (2%) Cab (90%) FBV (8%)
31t 49t
C TT
16th July’2012 AE 55
1.2.4

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.2.1 Categories & Segments
1.2.2 Competition Players, Spread, Models Range
1.2.3 Load bodies Landscape
1.2.4 BS3 to BS4
1.2.5 Roads, Customers, Drivers Landscape
1.2.6 Warranty, Registration, Insurance, Finance
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

16th July’2012 6 Selling Skills 56

1.2.4

BS IV and V implementation schedule in India.

Country wide BS IV introduction likely to be
advanced to 2014 Assumed introduction dates
BS I BS II based on SIAM & ARAI
NCR,Mumbai
Chennai,Kolkata Nationwide discussions
1st April 2001 1st April 2005
BS III
Nationwide BS IV (With OBDII)
BS III Nationwide
11 megacities 1st Oct 2010
1st April 2015
1st April 2005
BS IV (With OBDII)
BS IV (Without OBD)
may be advanced
13 megacities to 2014
1st April 2010 BS V
13 megacities
1st April 2015
BS IV (With OBDII) BS V
13 megacities Nationwide
1st April 2013 1st April 2020

2000 2005 2010 2015 2020

13 mega cities: Delhi (including the national capital region), Mumbai, Kolkata, Chennai ,
Bangalore, Hyderabad, Pune, Surat, Ahmedabad , Kanpur, Agra, Solapur and Lucknow
16th July’2012 BAE 57
 1.2.4

Change in regulation parameters from BS3 to

BS4 and the technology  To meetrequired for byBS4,BS5
BS-IV, NOx to be reduced (30%) & PM

(EGR, SCR
Bharat etc.)
stage regulations

(Particulate Matter) to be reduced by (80%)
From BS-IV to BS-V, only NOx to be reduced by (30%) PM
Regulation BS- BS- BS-
s III IV V unchanged
 To meet BS-V, engine need not to be changed, only
NOx 5 3.5 2
enhanced After- Treatment system would be sufficient to
PM 0.1 control NOx levels
0.02
 Hence, no change in engine for BS-V & less development
time & cost
Paths to realise BS IV/V Technology Details Parts affected

EGR Part of Exhaust gas is cooled and sent back  Major changes in engine
Controlled burn at low temp reduces NOx - Piston/Cylinder head
- EGR cooler/Turbo charger
levels - Bigger cooling system
Lower temp creates > PM - Bigger fan
These PM are absorbed by additional unit - More heat in engine room
DPF (Diesel Particulate Filter)
SCR Higher combustion temp.
Creates < PM & > NOx  Minor engine change
- After treatment system
NOx in exhaust gases reduced by Urea - Catalytic converter
(AdBlue) - Urea tank/metering unit
Urea converts NOx to vapour & N2 (harmless)
Additional tank given for Urea (AdBlue)
SCR (Selective Catalytic Reduction) EGR (Exhaust Gas Recirculation).
NOx (Nitrogen Oxides) PM (Particulate Matter)
Source: SCRfactswebsite, R&D, PP * Exhaust Gas Recirculation **Selective Catalytic Reduction # Daimler Trucks North
58 Americ
16th July’2012 BAE
1.2.4

Competitors have adopted SCR and EGR

technologies to achieve BS IV & likely all will
switch Global
to SCR solution
scenario Indian scenario

SCR EGR LDT HDT

EGR &
SCR
solutions

EGR path

SCR

 Majority of competitors have adapted a dual approach  All the global giants with Indian subsidiary or joint
 For BS-V (Euro-V) most of them are preferring SCR, but ventures have both EGR1 & SCR 2 technologies
ready to provide EGR option as well (SCANIA & MAN)  Tata, Ashok leyland and MAN to go ahead with EGR till
 MAN and Scania are inclined towards EGR technology Ad-Blue network available
 Likely to introduce SCR after Ad-Blue network is in place

- Main competitors follow both EGR and SCR approach.

- Competitors will switch to SCR after treatment due to fuel economy advantage
Source :SCR [Link], company websites, 1 Exhaust Gas Recirculation 2 Selective Catalytic Reduction
16th July’2012 AE 59
1.2.5

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.2.1 Categories & Segments
1.2.2 Competition Players, Spread, Models Range
1.2.3 Load bodies Landscape
1.2.4 BS3 to BS4
1.2.5 Roads, Customers, Drivers Landscape
1.2.6 Warranty, Registration, Insurance, Finance
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

16th July’2012 6 Selling Skills 60

1.2.5

Roads continue to occupy major share in overall

transportation market in India

16th July’2012 BAE 61

1.2.5

NHDP – 54,000km, USD 60 Billion (INR 3,00,000

Cr.), Largest road development program in
Indian history 700km 54,454k
1,000k
6,500k m
m Phase
m
Completed- Phase
643km Ring road,
VII
Expressway
VI bypass, gride
20,000k 9.9% Development separator &
m Phase V service roads
2 Laning of
Other National
Highways
(Excluding
Phase I, II &
III)
Completed-
0km

12,109k 0.0%

m Phase
2 Laning
IV of
Other National
Completed- Highways
(Excluding 54454
6,647k
2433km
Phase I, II & NHDP Status as on 30th
m
20.1% III) June’ 11
Completed- Phase
5520km 4 Laning
III of
7,498k 83.0%
High density 28017
National
m
Completed- Phase II Higways 15933
7337km Widening of 10504
NSEW Corridor
97.9% (Excluding
Phase I Phase I)
National
4 Laning of Completed Work in To be awarded Total
Progress
Highway
Golden
Development
Quadrilateral
and NSEW Project
Corridor (NHDP)
16th July’2012 BAE 62
1.2.5

CV’s demand estimate for every 20km of Road

construction
Mass segment – 180hp Modern segment – 230 to 280hp Premium segment –
400hp

TATA LPK AL 2518 MAN 25.220 / AL U 2523

2518 31.280

Volvo FM400

AMW 2518 Eicher Terra 25 TATA LPK 2523 Mahindra Navistar

MN25
Demand estimation for road
construction
• Soil/boulder/gravel transportation for constructing 1km of highway = 200,000cbm (Estimated
from current NHAI projects)
• Current average tenure of projects is around 30months
Mass segment – 180hp Modern segment – 230 to 280hp Premium segment – 400hp
• With the performance of the trucks, the • With the performance of the trucks, the • With the performance of the
average reliability of mass segment = average reliability of modern segment = trucks, the average reliability
65% 80% =90%
• With average operational time of 16hrs • With average operational time of 16hrs • With average operational time of
per day, 35 trips are done carrying per day, 40 trips are done carrying 16hrs per day, 40 trips are done
14cbm/trip 18cbm/trip carrying 20cbm/trip
• Estimated truck population = 14 • Estimated truck population = 9 trucks • Estimated truck popu = 6
trucks for 20km of road construction for 20km of road construction in trucks for 20km of road
20km in 30months = 14 trucks
in 30months 20km in 30months = 9 trucks
30months 20km in 30months
construction in 30month= 6
16th July’2012 E trucks 63
1.2.5

Movement towards overloading ban intensifies

as more states ban overloading
Overloading Scenario in 2010
Overloading Scenario till 2005 Overloading Scenario in 2012

Supreme Court passed The ban imposition started in Ban imposition continued with
judgement on 9thNov, 2005 phases. Few state governments states like UP, Haryana
banning the overloading imposed ban completely and imposing complete ban while
practice being followed by few partially for safety MP and Bihar imposing partial
state governments concerns on raod and prevent ban
damage of roads due to
overloading
No Partial Complete
ban ban ban
16th July’2012 BAE 64
1.2.5

CV Customers: Segmentation – Indian

Landscape
Customer segmentation Description
% 2007-08  First truck purchase
100 First time user
(FTU)  Take any load
20  Buy LDTs & MDTs, mostly used
30
Small fleets  Own 1-10 trucks
80  Buys in groups
(SFO)
 LDTs attached to tempo stands
22
 Own 10–50 trucks
Medium fleets  Are opinion leaders
60
(MFO)  Buy M/HDT and LDT
40
 > 50 trucks
26 Large fleets  Early adopters
40 (LFO)  Buy in hub and spoke – HDT for long haul,
LDT for short haul
4
1  Government institutions, e.g., defence, fire
20 10 22 Institutions depts.
 Typically bureaucratic
 Trucks for own use
15 5
 Small and medium enterprises
5 Captives  Use trucks for own business
0
LDT HDT  Mainly buy through the dealers

Note: Construction equipment market included in the customer segmentation, CV financing splits estimated from sales split
Source: Expert Interviews, BCG Analysis
16th July’2012 BAE 65
1.2.5

CV Customer – Ownership landscape – Truck

industry Ownership Period Customer characteristics by fleet size

Fleet 1 – 3 Yr 4 – 5 Yr 6 – 8 Yr 9 – 10 Yr Purchase Characteristics Buyer

 Dealer  Organized players,  SFO
second generation of
fleet owners  FTU
LFO
(Large  Replenishes fleet
Fleet
67% 23% 18% 2% every 3-4 years
owner)  In-house service
 Mostly active in MDT,
HDT segment
MFO,
 Dealer  First or second  SFO
SFO generation fleet
(Medium  LFO owners  FTU
and 49% 26% 25% 5%  Replenishes fleet 4-6
Small years
fleet  Few has in-house
owner) service
 Dealer  Driver cum owner
 All segments of  FTU
 LFO people
FTU vehicles
 No fixed period of
(First  MFO
time
24% 19% 38% 19% replenishment
 SFO  External service only
user)
 New purchases limited
LDT

Fleet owners has more of young trucks FTU has higher population of aged
vehicles

16th July’2012 BAE 66

1.2.5

Driver’s Requirement: Demand for “Drivers” has

increased manifold despite the entry barriers
POPULATION OF TRUCKS 2.4
2.1 2.2 2.2
2.0
1.9
1.7
1.6 1.6 1.6 1.6 1.7
1.5 1.5 1.5
1.3
1.2 1.2
1.1 1.1
1.0
4.47%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Vehicle park in Millions

ENTRY BARRIERS

MINIMUM
HARRASMENT ACCIDENT RATE HEALTH
EDUCATION
and ABUSE INCREASE HAZARDS
LEVEL

What customers say today….

I will buy your

vehicle but Surprised?
give me a
driver with it
16th July’2012 BAE 67
1.2.6

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.2.1 Categories & Segments
1.2.2 Competition Players, Spread, Models Range
1.2.3 Load bodies Landscape
1.2.4 BS3 to BS4
1.2.5 Roads, Customers, Drivers Landscape
1.2.6 Warranty, Registration, Insurance, Finance
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

16th July’2012 6 Selling Skills 68

1.2.6

CV Industry: Understanding - Guarantee vs Warranty

Guarantee vs. Warranty Parts covered by Warranty
Guarantee Warranty These include
A legal document which A legal document, which
promises performance of a •Engine W
ensures performance (or
a
certain standard and is valid replacement in case of non r
•Transmission
till a specified time. performance) till a certain r
Guarantee terms are not period. Terms and conditions •Propeller shaft a
always clear are very exact. n
•Wheel bearings t
y
•Differential

•Shock absorbers

Parts not covered by Warranty

These are generally inclusive of wear and tear parts.
Guarantee Warranty Certain parts experience wear and tear in their
Performance, Quality, Engine, Gearbox, Axle, operation.
Durability, Reliability, Chassis, Motor, They include
Serviceability Suspension
Generally refers to the Refers to the clause of sale •Brake Parts like brake pads, brake liners
promise of the manufacturer that incase of a component •Fuses, bulbs, rubber part, bushes, stops, etc
that the performance of a failure within a specified
product complies with time, the component MAY •Friction parts like clutch linings
claims made by the be replaced subject to terms
manufacturer and is not and conditions specified in •Oils like engine oil, transmission oil, differential oil, etc
inferior in any manner the warranty •Filters including engine oil filters, air filters, oil filters
Note: Terms of Warranty and parts covered by this vary between manufacturers and in certain cases between products

16th July’2012 BAE 69

1.2.6

CV Industry: Understanding – Truck Insurance

Insurance What is not covered by Insurance
• Primary aim of auto insurance is to provide Losses or damages of Parts arising due to
financial support against physical and/or bodily
injury/damage in case of a traffic collision • Normal Wear & Tear due to usage

• The aim is achieved through collecting a sum of • Electrical & Mechanical Breakdown
amount known as a PREMIUM • If driving under the influence of alcohol or
• Commercial vehicle insurance only covers the without Driver’s Licence
vehicle and the damages arising to the vehicle,
not the freight • Loss incurred due to improper usage like
racing
• Premium is generally calculated as a percentage Claim procedure in case of an accident
of the IDV (Insured’s Declared Value), cubic
•Notify accident to insurance office
capacity of the engine, GVW of the vehicle and
other factors •Submit filled claim form + registration, licence &
• As the vehicle gets older, its IDV decreases, Repair estimate
Commercial
taking into Vehicle
account the Insurance
depreciation •Vehicle survey by surveyor (Insurance company
•Certain key commercial vehicle insurers are: appointee)
•In certain cases, spot survey by surveyor, at
accident site
•Submit final bills duly signed
•In certain cases, damaged parts may be salvaged
by the insurance company after claim approval

16th July’2012 BA 70
1.2.6

CV Industry: Understanding – Financial terms

Terms
• Grid Value Value of a vehicle as determined by a Financing company, based on various inputs from market including
Vehicle popularity, Vehicle performance, business value, usage
statistics, etc
• Vehicle Rate Total value of the vehicle which has to be paid to the dealer including RTO charges, registration taxes, etc
• Loan Amount The amount of funds that a Financial Organization is willing to fund for the vehicle. Generally denoted in
%
• Customer Margin The amount of remaining funds other than the loan amount that the customer has to pay in order to
achieve the vehicle rate. Also
known as down payment
• Interest Rate The amount of interest charged by the finance organization for the loan amount it is willing to pay
• Internal Rate of Return ABCDXYZ
• EMI Equated Monthly Instalments. The amount a customer has to pay in monthly periods to the financial
institution in order to fulfil the Process amount
received as loan
•Document
Tenure Verification
The period Guarantor
within which the loan must Proof
be repaid. Credit
EMI is calculated Approval
based Cheque to Dealer
on the time period/Tenure
Collection Document Verification of the Credit approval Cheque prepared
•Income proof verification and guarantor/guarante note forwarded to in the dealer’s
•Bank Account client feasibility e for the loam the bank/Dealer name and vehicle
Statement done by the amount conducted ready to be
•Residence Proof financial Institution by the Financial delivered
•2 Passport Photos and loan amount Institution
•Other documents finalized
depending on
financier
Hypothecation
After Endorsement on the RC book, following documents need to be submitted to the
Financier

RTO
Form 20Hypothecation ＋ ＋ ＋
Insurance Road Permit RC Book Invoice

16th July’2012 BA 71
1.2.6

CV Industry: Understanding – Commercial terms

Basic Price (BP) Net Declared Value Excise (ED) ED Values (Current)
Cost of production of Used in commercial Taxes as levied by the CBC  15%, FBV 
the product with the invoices, wherein the government on the 12%
basic profit for the value is declared basic price of the Auto cess @ 0.125%
manufacturer. This price formally. Value of a product. A one time Education cess @ 2%
is declared by the product cannot exceed payment CST  2%
manufacturer Net Declared Value
CST VAT Octroi Entry Tax
Central Sales Tax – Value added Tax – Taxes collected by local Taxes collected by the
which imposes sales Taxes collected across authorities whenever an state for the entry of
taxes on products which the sale chain wherever item is bought into a goods/products into a
are sold in various value is added to the region for local particular state (State
states. It is a one time product consumption / use. Govt)
payment (Central Govt) Currently used in
Landed Cost Transportation Dealer Margin
Maharashtra List Price (Spares)
The costs applicable for Prices for transporting a Profit margin applicable Price as mentioned in
a dealer to have goods product from point A to to a dealer. Is a the brochure of the
at their premises after point B (Eg: Factory to percentage of the product. Is a formal
having paid the basic Dealership) landed cost and is proposal and gives a
price, all taxes and added to the landed fair idea of the price
transportation costs cost range
Net Dealer Price (NDP) Maximum Retail Pr. (MRP)
Ex Showroom Price End Customer Price
Net Dealer price is the The maximum price a Landing cost outside of Final prices as
prices as applicable at a product can be sold at. the showroom suggested to a
dealership. Includes the Any product cannot be customer
profit margin for the sold at more than MRP, MRP + Local Tax
dealer including taxes MRP + Local Tax + RTO
+ Insurance
16th July’2012 BA 72
1.3

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

6 Selling Skills

16th July’2012 73
1.3

CV – SIAM Classification (earlier and now)

16th July’2012 AE 74
1.3

Overall Indian Auto Industry (Personal &

Commercial)
Commercial Vehicles Cars, UVs and Vans Two Wheelers Three Wheelers

16.91
Auto Industry Sales
In Million Units

14.82

12.43% 14%
11.33

9.94 9.79 9.70

8.58
31%
7.66

6.46
5.89

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
16th July’2012 BAE 75
1.3

Overall Indian CV’s Industry

Cargo vs. Passenger
574 686
Cargo Passenger (in ‘000)

394 418 395 391

264 288
197
143
52 64 63 68 87 89
42 45 49
36

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

LDT & MDT vs. HDT (>25t)

LDT & MDT HDT (>25t) 175 202
(in ‘000)
(LDT does not include < 5t) 167 161
142
116 113 124 133
108 103 104
97
87
71 103 99
75 97
52
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

16th July’2012 BAE 76

1.3

CV – Indian Cargo Industry

LDT vs. MDT
95 86 97
(in ‘000)
85 LDT MDT
(LDT does not include < 5t) 74 73 70 70
75
69 68
65
51
55 44 47
39 35 38 36
45 36 33
35 29 29
27
25
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

HDT (>25t) Rigid vs. Tippers vs. Tractors

104 92 101 106
Rigid Tippers Tractors 83
(in ‘000)
84 74
56 60
64 50 49 54 51 66
46
39
44
26 29 36 35 31
26 24 28 30
24 22 12 17 13
7 11
4
4
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

16th July’2012 BAE 77

1.4

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

6 Selling Skills

16th July’2012 78
1.4

CV – Industry movement update

Total Sales Quarterly Sales Trend Truck sales growth slowed to 12%
In ’000 units In ’000 units in 2011 to register on overall sales
2009 2010 2011
of 334k units as compared to 299k

334
units in 2010. Lower than expected

99
299
275

industrial production hampered

86
264

82

82
239

75
72

72
sales in haulage segment as

67
202

63
56
infrastructure demand contributed

42
41
to higher growth in tipper sales
15% 9% 9% 14% during the year. LDT segment
-4% -9% -16% 48% 12%
gained on evolution of new
tonnage segments and products.
2006 2007 2008 2009 2010 2011 Q1 Q2 Q3 Q4
Stricter overloading curbs in key
northern states also led to an
Category-wise Volumes Company-wise Volumes increased shift towards higher
In ’000 units In ’000 units tonnages in all segments
2009 2010 2011 2010 2011
106

207
101

188
97
86

65.7
70

60

10% 4% 26% 59%

45.8

9%
38

30.5
36

62
60
30
29

28

39
31
13

12% -4% 5% 43% 5%

9
6

6
6

LDT MDT HDT-R HDT-C HDT-TT

LDT & HDT-C segments drive truck industry sales

16th July’2012 BAE 79
1.4

CV – LDT sales continue to decline in Jun-12

16th July’2012 AE 80
1.4

CV – M/HDT sales drop by 24% to 14.1k units in

Jun-12

16th July’2012 AE 81
1.4

CV – Trends / Shift Across Segments

Lower-end LDT Higher-end LDT L/MDT
In %age In %age In %age
7t 13t
16t
12t

5-6t
13t
9t
12t
4t 8t
'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

Share of 5-6t trucks dipped to Introduction of a tonnage Introduction of 13t trucks not
an all time low of 50% in the segment in 2011 – 13t GVW only impacted 12t sales, but
lower end of LDT Trucks as the trucks induced a mass shift also pushed the segment shift
4t truck segment gained share from the 12t as the range from 16t trucks. 16t-R share
from 24% in 2010 to 36% in offered better operating dropped from 56% to 48% in
2011. Better price-to-payload profitability for transporters, 2011, where as 13t share
availability from 4t trucks is specially in states which has reached 20% during the year.
fuelling a downward shift from completely banned 12t share declined to 32% in
the current 5-6t trucks. overloading. 13t segment 2011 from 44% in 2010. Key
Meanwhile, share of 7t trucks gathered a share of 23% in reasons for the shift cited by
remained stagnant at 15% in overall higher-end LDT sales. transporters is better operating
2011 Meanwhile, 12t share dropped economics in a no-overloading
to 37% in 2011. 9t share regime
Launch of 13t GVW products in 2011
remainedinduces
at 32% in mass
2011 shift from both 12t and 16t trucks
16th July’2012 AE 82
1.4

CV – Trends / Shift Across Segments

M/HDT-R M/HDT-C HDT-TT
In %age In %age 31t In %age

31t 49t

25t
25t 40t

16t
16t 35t

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

31t-R segment increased its 25t-C continued to gain on 49t-TT increased its share in
share much more than account of upward shift from HDT-TT to an all time high of
anticipated to 41% of overall 16t-C and contributed to 55% 23%, almost one-fourth of total
M/HDT-R segment. Stricter of overall tipper sales. articulate sales in 2011
implementation of overloading Meanwhile, 16t-C share dipped signaling a shift towards higher
ban across key states led to to 42% during the year – 2011. tonnage segments. 35t-TT
increase in 31t-R sales. This Shift from 25t-C to 31t-C share dipped to 40% on low
also led to steady decline in continued to remain muted growth in car sales and gas
25t-R share during the year. On even in 2011 due to lack of transportation. Meanwhile, 40t
the other hand, 16t-R mass market products from key share also dipped to 37%
maintained its share to 26% in truck OEMs. 31t-C share dipped during the year on upward shift
2011 as key volume goods end- to 3% during the year to 49t-TT
user segments
Haulage segment did not migrate
witnesses increased shift towards heavier tonnage segments in 2011
to higher tonnages
16th July’2012 AE 83
1.5

Contents
1 Commercial Vehicle Industry
1.1 Product Terminologies
1.2 CV Industry Landscape
1.3 CV Industry Volumes
1.4 CV Trends & Analysis
1.5 Factors Influencing CV Industry

2 CV Segmentation & Applications

3 Competition Products

4 BharatBenz Trucks

5 Operating Economics

6 Selling Skills

16th July’2012 84
1.5

CV – Why trucks are purchased

Why are
trucks
bought?

Fleet Replacement Fleet Initiation

Fleet Enhancement

Change in
tonnage / brand Expectation of
Ageing Fleet New Contracts First Time Users
preference of More Load
owner

Key Reasons for Buying Trucks

16th July’2012 BAE 85

1.5

Growth in Truck Industry is supported by 4 key

factors
Road/Rail infrastructure
development
 Highway development (Golden
Quadrilateral, North-South and East-West
corridors)
 Railways investing to protect share in
total cargo movement in the country
which has depleted over the years

Economic (GDP) growth Regulations

 Real GDP growth of 7%  Overloading ban increasing
over FY 07–18 demand for heavier trucks
 PPP-adjusted GDP per  Stricter age regulations
capita will reach ~ US$  City entry restrictions
7,340 by
FY 18

Professionalization and
competition
 "Hub-and-spoke" concept
 International OEMs entering India
 Incumbents expanding capacity with
strong product pipeline

16th July’2012 AE 86
1.5

Financing is also one of the key driver for CV

growth and is strongly correlated with CV sales
Interest Rates and Truck
Truck Industry Financing
Volumes

Trucks (>5T) Annual disbursement, INR Bn Units ('000)

> 5t %
400 Reduction 400 15
Similar due to
to lower
growth +19%
sales in
300 in Truck 2008-09 306 300
sales 10

200 231 234 200

221
189
163 299
152 275 264 5
216 239
100 100 212 202
110 161
77 122

0 0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010

Avg. retail interest rate (%)

Units (’000)

16th July’2012 AE 87
1.5

Seven major Industries contribute to Road

Transportation

16th July’2012 AE 88