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The pulse of the automotive industry
Vol-2 Issue-8 / May 2012 /`10
Jaguar XJUltimateunveiled
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Mahindra navistar autoMotive ltd.
G pg
Ever wondered how a man can
be as passionate making a
monstrous truck or a bus, as
he is while making a smart,
muscular sports utility vehicle,
or a small compact car, or even a snazzy
looking electric vehicle? The answer, by
all means, lies in the deoxyribo nucleic
acidor the DNA o the person or the
organisation. At Mahindra & Mahindra,
the passion to make trucks and buses,
besides all kinds o motorised vehicles,
runs in the DNA o the company and its
people.
The passion to handle such a
diverse business runs in the DNA o
Mahindra & Mahindra. I you start
with Anand Mahindra, he is o course
handling much more diverse portolio
than I am handling,says Dr. Pawan
Goenka, President, Automotive &
Farm Equipment sectors, Mahindra &
Mahindra.
Dr. Goenka is candid when he says
that or the truck business it is Nalin
Mehta who is responsible or the
delivery. Mehta is the Managing Director
o Mahindra Navistar Automotive Ltd
(MNAL), a 51:49 joint venture company
between Mahindra & Mahindra and
Navistar o the US. Mehta is responsible
or the volumes, the investments and
the proitability o the business. We
have structured ourselves in a way that
at my level I am able to change my
hat by the hour, ocussing rom one
business to another. I have a clearly
deined matrix, as to what are my
control points, etc as is said in the policy
deployment that we do. On that basis
we are able to ocus on every business,
he inorms.
So how do people like Dr. Goenka
maintain the passion to run this
business? Passion goes back starting
rom the core purpose we have or
the Mahindra Group-- and which we
have deined very careully ---about
driving positive change in the lives
o people whom we touch whether
they are employees, customers, stake
holders, suppliers or investors. Any
business that we are running has
that element going across.
Everything that is coming
under me in Automotive and
Farm Equipment sectors
(AFS) has two threads. One
is the automotive thread. The passion
or automotive is dierent as compared
to any other business. This is one glue
that binds us together. The other
glue is agriculture where the passion
is o a very dierent kind. Its not so
much about glamour but about the
contribution that we can make to the
arming community in order to drive
armersprosperity. So, I am basically
working with two glues. I keep them
separate, yet I work with them together,
he points out with a smile.
Mahindra Navistar, aiming to become
a strong third player
The commercial vehicl e space in Indi a
has at one end the commercial three-
wheelers and at the other end trucks
beyond 40 tonnes. I one were to take
into account this space in its entirety,
Mahindra & Mahindra and Mahindra
Navistar are already creditable
Report: P.Tharyan & Photography: Mohd. Nasir
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players. In the pick-up truck we have the
largest market share. In the sub-one tonne
we are No. 2. In the three wheeler space too
we are No. 2. So in the small commercial
vehicle segment i we were to aggregate
all the numbers we are already No. 2. Its
in the heavy commercial vehicle segment
that we are relatively new in a very distant
third or ourth position. Its here we need
to make our mark. There is no doubt that
the minimum we need to achieve, is to
be a creditable third player or which we
have quite a bit o space to cover. We are
running at around 500 vehicles a month.We need to get to 1,500 to 2,000 vehicles a
month beore we can stake our claim to be
a strong third player. Once we get there we
shall talk about the next stop. Right now
our goal is to get to the third position in a
reasonably short time,he clariies.
Dr. Goenka eels that the major issue at
Mahindra Navistar is not about prospective
customers getting convinced o the
We have structured
ourselves in a way that
at my level I am able to
change my hat by the
hour, focussing from onebusiness to another.
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To become a creditable t
player is extremely importa
us before we make a huge
into overseas markets.
product. I do not think it is a major issue
right now. It took us longer than what we
thought it would take. But we have crossed
the stage where the customer sees a value
in a product. The problem there is that
in itsel is not enough or us to become a
creditable third player. We need to convert
our customers to buy our products much
more than what we are selling today. I I
were to compare as to where we are todayand as to where we were one year back,
we made big progress. I would say that
this is not anywhere near enough. As I
mentioned we have to target a minimum
1,500 to 2,000 units per month. And to get
to three or our times rom where we are
today, it would take quite a bit, especially
to convert the customers o No. 1 and 2 to
go or our products. And in this business,
customers do not switch easily,he admits.
Dr. Goenka points out that their US
based partner Navistar has played a
signiicant role in several areas in this joint
venture company. One is in the initial
styling and engineering. Navistar had lot o
its engineers working closely on the design
and engineering o the products. A lot o
our testing was done in the US. That wasa major role they played. Another big role
they would be playing would be exporting
these trucks, either under the Navistar
brand name or under the Mahindra
Navistar brand. We are already looking at
some markets. This could be in the orm o
a ull truck or even a cabin or some parts
o the trucks. That will help us to get much
larger volumes, better recog
brand, etc,he says.
At present, however, the
domestic market. To becom
third player is extremely im
beore we make a huge ora
markets. We are looking at t
right now where we shall b
which will be through Navis
shall be getting our eet wethen grow rom there. The t
very good value propositio
as well as overseas markets
been a single person who h
negative to say about the tr
very happy with the produc
want more customers to bu
with a determination.
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Dr. Pawan Goenka
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I think we have n
reached the tipping
and we are doing b
than many players al
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Mahindra navistar
sg, b
gp
There is no doubt that the commercial vehicle
space or medium and heavy trucks and buses
in India is dominated by two major players in
IndiaAshok Leyland and Tatas. With a whole
host o new players coming in, the scene is
expected to change in the coming years. Nalin Mehta,
Managing Director o Mahindra Navistar Automotive
Ltd (MNAL) eels that there is tremendous scope or his
company in the Commercial Vehicles (CV) space in India.
Mahindra Navistar is currently in the 3.5 to 7-tonne
category. It is also present in the 25-tonne to 40-tonne
segment. It acquired the LCV business rom Mahindra
in order to become a ull range player in CVs. The LCVproducts are sold under the brand names Load King, Cab
King & Tourister while the HCVs have been named MN25,
MN31, MN40---the MN standing or Mahindra Navistar.
Mahindra Navistar which started operations in October
2010, began its innings with a 25-tonne product. It
added a 31-tonne product almost simultaneously. The
company then added a 25-tonne tipper or construction,
ollowed by a 40-tonne tractor trailer. It already had an
LCV range o 3.5 to 6-tonne range available in cargo. As
or the buses it has a 15-seater, a 25-seater, a 32-seater
and a 40-seater. For the last three months, the company
is selling about 500 HCVs a month and about 1,000
LCVs a month. The plant in Chakan in Maharashtra has a
three-shit capacity o producing 50,000 units per year.
Currently the company is running one s hit. I think time
has now come or us to ramp up the LCV capacity and we
want to get ready over a period o time or about 20,000
LCVs per annum. It would be about 3 years to 4 years
when we add about 50,000- 60,000 CVs as Mahindra
Navistar,says Mehta.
We have a plan to introduce a 49-tonne tractor
trailer, so that will happen sometime in the current
nancial year. In the Auto Expo in New Delhi we had
shown a rerigerated van. Cold chain is a business
really developing in the country. So we will oer
eventually integrated rerigerated solutions. We are not a
rerigeration expert or sure. There is also a mining tipper
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and a coal carrying tipper coming. The
market is moving towards concrete mixers
on the site so mobile concrete mixers are
coming. There is a lot o s cope and we want
to be true to our philosophy o OK is no
longer OK,Mehta says.
In act the CV segment is very scarcely
populated. We have had a duopoly existing
in this market or quite a ew decades now
with two players holding literally 85pc o
the market share. There are a ew other
players who play in the rest o the market.In my interactions with the industry and
the consumers I can tell you that they are
looking or a creditable third player. They
want the power o choice. They want an
appropriate product. Some o the new
players have come with certain niche
market products, while the market is
looking or a product which will be better,
yet a part o their mass requirement.
Mahindra Navistar has positioned itsel
as something which stands out but does
not stand apart. We have come out with
oerings which the market needs and they
are more appropriate and relevant or the
market,he notes.
Philosophy o OK is no longer OK
Mehtas philosophy OK is no longer OK is a
strong thought process. Its not a slogan, itsthe way he and his company want to think
and the way they want to work, which really
means challenging the status quo. Mehta
claims that he has in place a network de-
signed or the customers requirement that
include ully covered truck workshops with
a driver lounge where the driver can sleep
or the night and get his boarding lodging
while his truck maybe gett ing repaired. The
company also has a 24x7 call centre or the
customer to call in case he is stuck on the
highway.
And this is not an ordinary call centre.
It is truly an OK-is-no-longer-OK -call
centre. Everybody has a call centre. This
is multilingual. The drivers may not know
English and Hindi. They could be speaking
any o their native languages so we can
speak seven languages. It is not an ordinary
call centre with ordinary employees. We
have got diploma engineers sitting in our
call centres who are multilingual,he says.
Thus any customer acing a technicalissue with his Mahindra Navistar vehicle
can call up the centre and converse in his
own language to the technically sound
employee. In case a spare part is required,
the companys mobile workshops get into
action. Its a workshop ully equipped. It can
even remove an aggregate i necessary so
our mobile workshop will carry the relevant
to increase to 80 dealers in the next 12
months. It has also put seven ast response
centres or spare parts across the country
that carry the big parts which the dealer
may not be carrying all the time. In additionto that the company has 220 authorised
service centres which are basically Mahindra
automotive and arm dealers who are very
well trained in the automotive business. In
addition to that, the company has nearly
800 roadside assistance mechanics. These
mechanics have been trained and many
o them carry the truck parts also. Our
promise is that typically we will reach the
customer in any part o the country within
our hours. And also remember its a call
centre which will understand the customers
problem. Thereore the person who reachesthe customer on the highway is likely to go
with the correct part. For the rst time we
have given a our-year unlimited mileage
warranty. In addition to that we have also
given 48 hours up time guarantee. This is
today available on the golden quadrilateral
and the north-south and east-west corridor.
Now our perormance in the 48-hour up
time guarantee is more than
moment. All this has been p
o the extensive network we
place,elaborates Mehta.
The 48 hours uptime guathat i a Mahindra Navistar t
problem and i the company
back on the road within 48 h
the company will give the c
compensation. When it com
product I think the product
The industry today acknowl
aggregates are more robust
parts. This call centre is equipped to give a
very ast response to the customer. Also we
have housed the call centre in our service
headquarters. Here senior technical people
are also present during the day. In case thecall centre technician is unable to redress
a callers issue, he is able to call our service
engineer rom the service headquarters
and answer to the customer. Our service
headquarter is based in Chinchwad (Pune
district in Maharashtra),points out Mehta.
Mahindra Navistar currently has 56 world
class dealers ready. The count is going
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MNAL plant at Cha
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lasting longer. Our engine will easily last
a million kilometres. The typical industry
standards will be 600,000km to 700,000km.
The cabin stands on a our point suspension
or extraordinary comort to the driver, the
ergonomics o the driver seat ---it can be
adjusted and all the displays are within the
easy reach o the eye or the hand as the
need may be,he adds.
Mehta claims that a Mahindra Navistar
truck cabin has been built ater studying
the drivers habits closely with all kindso lockers to keep his valuable saely
when he is not driving. So the l ockable
compartment is really giving them a lot o
peace o mind. Then we have als o given
them storage which is appropriate to their
requirements. They carry clothes, grains,
lubricants and also cookers. So we have
given them two compartments which are
reachable rom outside. In one he can keep
lubricants and some other things required
or the maintenance o the truck and in the
other he can keep eatables. All this adds
immensely to the comort o the driver,says
Mehta.
The cabins also have ans or comort.
Air-conditioning is an option available
to the customer. Two sleeping berths are
also provided within the cabin. Braking is
another issue that has been given a major
boost. The products come with a 10-inchbooster. We are using a 10 bar system
against an 8-9 bar system the industry is
using and it is being acknowledged now
by the drivers that the braking is giving
him extraordinary condence. It is proved
by statistics by my own customers that my
truck is running about 10pc more than what
otherwise he was getting rom the existing
old truck. Other eatures are adding a lot to
the productivity and the earning capability
o the truck. So I would say we have made
our place under the sun and the CV market,
Mehta notes.
Instilling confdence in customers
Mehta says that the commercial vehicles
market is looking or a t hird player. Even
though the Mahindra brand itsel is very
trusted in India, the customer has to have
more condence in the Mahindra Navistarproducts. The trust is already there.
Condence takes times, I know. Nobody says
that Mahindra will not be the third player.
People say that Mahindra can be and is the
only company which can be a third player,
he says.
Mehta points out that the growth in the
light commercial vehicles (LCV) segment
has helped the growth in the medium and
heavy commercial vehicle segment. The LCV
growth is mainly because o growth in t he
one-tonne category. Mehta says that the
25-tonne segment is moving towards 31-
tonne. While the 25-tonne market has not
really shown much promise, the 31-tonne
market has grown remarkably. Multi axles
and tractor trailers are growing well and
moving upwards thanks to better highways
and the hub and spoke met hodology. Thus,
according to Mehta, both the small LCVsegment and the big vehicles segment need
to grow together. Both must grow or the
transportation industry to become healthy,
he adds.
Exports o Mahindra Navistar trucks are
also in the pipeline. We have made a world
class cabin. This cabin was displayed in
the US truck show. We had displayed this
cabin in the South Arica Motor Show also.
Now we have a right hand dr ive product
so we must rst attack the right hand drive
markets. So our rst export oray will be
South Arica. And we have a ull fedged
network o Navistar available in South
Arica. They are selling trucks rom US. Their
distributors have visited us and they ound
the product antastic. The motor show gave
us a lot o encouragement in South Arica.
The product is being congured or that
country,says Mehta.As or the bus that was displayed at the
recent auto show in New Delhi, Mehta
admits that this was not just a show bus. The
company is seriously developing it. Within
a year or so it would be on the road. The
company already has a range o buses at
present. We are leaders in school bus. We
actually are perhaps the rst players to give
an integrated school bus so
have to be lower or children
to be hung somewhere, so w
rst ones to make a bus mea
The saety doors have to be
visibility has to be there, the
notice board, announcemen
buses that you saw in Auto
like contract buses which go
and things like that but mos
intra-city. The inter city big b
some time away,he says.I think the whole conde
product, service, repeat ord
customers etc are now in pl
I thought it would happen a
has taken time, but it has ha
And I am glad. I think we ha
the tipping point and we are
than many players already,
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