YEAR LONG PROJECT

INDUSTRY- AUTOMOBILES-LCV’S/ HCV’S

COMPANY- ASHOK LEYLAND

GROUP NO-15

Naveen Kumar P(29030)

Vaibhav Kumar (29055)

AkankshyaAgarwal (29062)

A Subash (29108)

PRODUCT PRICING STRATEGIES IN VOGUE IN THE INDUSTRY AND IN

ASHOK LEYLAND LIMITED (ALL)

The Internet is changing the automotive industry as the traditional manufacturer

and dealer structure faces increased threats from third party e-tailers. Dynamic

pricing together with the Direct-to-Customer business model can be used by

manufacturers to respond to these challenges. Indeed, by coordinating

production and inventory decisions with dynamic pricing, the automotive

industry can increase profits and improve supply chain performance.

The automotive industry operates with high fixed costs, long product

development cycles and chronic overcapacity. These factors, combined with

uncertain raw materials prices, create constant pressure on profitability and cash

flow. Contrasting with these ponderous constraints is the fickle behaviour of

consumers. Consumer spending is unpredictable and consumers have more

options and greater transparency than ever. These conflicting demands create

the need for predictive capabilities and flexibility.

Automotive sector clients have the best pricing strategies and they are well-

defined, communicated throughout the organization and actionable. Developing

the right pricing strategy requires combining strategic objectives with granular

data analysis. The steps followed for establishing a pricing strategy include-

1. Educate stakeholders about potential pricing strategies that fit their

current operating model and strategic objectives

2. Perform detailed analysis to determine value proposition vis a vis

competition at a customer segment level

3. Compare value proposition analysis to potential pricing strategies to

determine ideal strategy by segment

4. Ensure a rational price structure across channels and substitutable or

complementary products

5. Create change management plan to communicate pricing strategy

throughout the organization

Pricing is one of the four elements of the marketing mix, along with product,

place and promotion. Pricing strategy is important for companies who wish to

achieve success by finding the price point where they can maximize sales and

profits. Companies may use a variety of pricing strategies, depending on their

own unique marketing goals and objectives.

Cost-Plus Pricing

Cost-plus pricing is the simplest pricing method. The firm calculates the cost of

producing the product and adds on a percentage (profit) to that price to give the

selling price. This method although simple has two flaws; it takes no account of

demand and there is no way of determining if potential customers will purchase

the product at the calculated price. This appears in two forms, full cost pricing

which takes into consideration both variable and fixed costs and adds a

percentage as mark-up. The other is direct cost pricing which is variable costs

plus a percentage as mark-up. The latter is only used in periods of high

competition as this method usually leads to a loss in the long run.

Market-oriented pricing

Setting a price based upon analysis and research compiled from the target

market. This means that marketers will set prices depending on the results from

the research. For instance if the competitors are pricing their products at a lower

price, then it's up to them to either price their goods at an above price or below,

depending on what the company wants to achieve .

Limit pricing

A limit price is the price set by a monopolist to discourage economic entry into a

market, and is illegal in many countries. The limit price is the price that the

entrant would face upon entering as long as the incumbent firm did not decrease

output. The limit price is often lower than the average cost of production or just

low enough to make entering not profitable. The quantity produced by the

incumbent firm to act as a deterrent to entry is usually larger than would be

optimal for a monopolist, but might still produce higher economic profits than

would be earned under perfect competition.

The problem with limit pricing as a strategy is that once the entrant has entered

the market, the quantity used as a threat to deter entry is no longer the

incumbent firm's best response. This means that for limit pricing to be an

effective deterrent to entry, the threat must in some way be made credible. A

way to achieve this is for the incumbent firm to constrain itself to produce a

certain quantity whether entry occurs or not. An example of this would be if the

firm signed a union contract to employ a certain (high) level of labor for a long

period of time.

Skimming

In most skimming, goods are sold at higher prices so that fewer sales are needed

to break even. Selling a product at a high price, sacrificing high sales to gain a

high profit is therefore "skimming" the market. Skimming is usually employed to

reimburse the cost of investment of the original research into the product:

commonly used in electronic markets when a new range, such as DVD players,

are firstly dispatched into the market at a high price. This strategy is often used

to target "early adopters" of a product or service. Early adopters generally have

a relatively lower price-sensitivity - this can be attributed to: their need for the

product outweighing their need to economise; a greater understanding of the

product's value; or simply having a higher disposable income.

This strategy is employed only for a limited duration to recover most of the

investment made to build the product. To gain further market share, a seller

must use other pricing tactics such as economy or penetration. This method can

have some setbacks as it could leave the product at a high price against the

competition

Penetration Pricing

A penetration pricing strategy is designed to capture market share by entering

the market with a low price relative to the competition to attract buyers. The

idea is that the business will be able to raise awareness and get people to try the

product. Even though penetration pricing may initially create a loss for the

company, the hope is that it will help to generate word-of-mouth and create

awareness amid a crowded market category.

Perfect Price

There is no standard or best pricing formula in any industry. For many years

people have tried to develop a formula for determining the right price that the

business should change to generate premium profit yet not discourage

customers from buying. There is no right price because of which, choosing a

price strategy is very important.

BRANDING AND IMPORTANCE OF BRANDING IN THE INDUSTRY AND IN

ASHOK LEYLAND LIMITED (ALL)

Dual brand strategy

The joint venture between commercial vehicle manufacturer Eicher Motors (EML)

and the world's second largest truck maker AB Volvo (Volvo) has decided to have

a dual brand strategy for their entry into the country. Similarly, other commercial

vehicle manufacturers involved in dual brand strategy including ALL.

Ashok Leyland to go for brand revamp through acquisitionCommercial vehicle major and Hinduja Group Company Ashok Leyland has said

that it would go for a brand revamp as part of a three-point strategy that also

includes focusing on quality and people. It has set a target for itself to be one of

the top 10 players in truck segment and top five in the bus segment in the next

5-10 years.

The company, which is set to cross revenue of Rs 11,000 crore for the first time

in this fiscal, has also lined up investments to the tune of Rs 800 crore and is

scouting for acquisition opportunities to expand its global foot print.

Vinod K Dasari, who took over as Ashok Leyland's managing director on April 1,

2011 said: “My vision to make the company one of the top 10 players in trucks

and top five in bus segment over the next 5-10 years in terms of volume.”

The company plans to double its capacity in truck segment from the current level

of 150,000 units. The company which has sold 94,100 units has set a target to

sell 110,000-120,000 units for 2011-12. R&D would be the other focus area, said

Dasari. Of the Rs 800 crore CAPEX, Rs 200 crore would go on R&D. He noted that

two years back, its investment in R&D was Rs 90 crore.

The other proposed investments include Rs 200 crore for research and

development, Rs 50 crore to increase capacity at Alwar plant and Rs 200-300

crore in Pantnagar plant for back-end, for adding another frame line and for

others. The company has set a target of Rs 11,000-12,000 crore of revenue in

2011-12 as compared to Rs 7,315.16 crore in 2009-10.

Brand Communication

In the first-ever association with a celebrity endorser in over six decades, ALL

has signed Mahendra Singh Dhoni as brand ambassador. He will be the new face

of Ashok Leyland and lend traction to a slew of initiatives and new product

innovations that they have kick-started to become one of the strongest players

in the commercial vehicle business. 

DETAILS OF PRODUCTION, CAPACITY AVAILABILITY, UTILIZATION LEVELS

IN THE INDUSTRY AND IN ASHOK LEYLAND LIMITED (ALL)

The strong recovery witnessed in the domestic commercial vehicle (CV) sector in

the second half of the financial year 2009-10 (FY2010) has continued in the

current fiscal with the April-November 2010 period reporting a growth of 35.2%

over the corresponding previous year. Steady growth in economic activity, pick-

up in demand from across end-user segments, adequate availability of financing

at competitive rates, and improvement in the overall sentiment are among the

key factors that have collectively aided the growth across the segments of the

CV industry. Part of the growth has also been facilitated by pre-buying, a

phenomenon witnessed during September 2010, ahead of changes in emission

norms taking effect from October 1, 2010.

Overall, the growth in the medium and heavy commercial vehicle (M&HCV)

segment has been stronger at 47.4% as compared with the light commercial

vehicle (LCV) segment, which reported a 25.8% growth during the same period.

Within the M&HCV segment, the tractor-trailer segment was the first to witness

recovery with increasing demand for transportation of industrial commodities

and pick-up in foreign trade, while the tipper segment, which derives demand

from the construction and infrastructure projects, witnessed a more gradual

recovery. Over the past three to four quarters, original equipment manufacturers

(OEMs) have affected successive price increases averaging over 10% to recover

the increase in input material prices and the cost of making the transition from

BS II to BS III emission norms. While economic activity remains buoyant and

freight rates firm, the increase in ownership cost along with rising interest rates

and fuel prices is likely to exert some pressure on the viability and cash flows of

fleet operators. With growth in the CV segment during Q2 FY2011 having been

driven partly by pre-buying ahead of BS III, ICRA expects growth in the second

half (H2) of FY2011 to be relatively subdued. In terms of competition, while in the

past, international OEMs were unable to make a major dent in the domestic CV

market (characterised by a duopolistic structure), they have now ventured in

through joint ventures (JVs) with some of the domestic players, thereby raising

the prospects of increasing competitive intensity. Examples of such JVs include

the ones between Mahindra and Mahindra and Navistar; Eicher Motors and Volvo;

Force Motors and MAN; and Ashok Leyland and Nissan.

Some of the JVs are likely to benefit from the in-depth understanding of the

domestic market that the local players have, their established vendor base, and

their extensive marketing and distribution reach. Nevertheless, the incumbents,

in defending their market position, would continue to draw strength from their

established brand franchise, extensive service and distribution network, and

competitive cost structures.

Capacity utilisation at ALLHinduja Group flagship Ashok Leyland is expecting full capacity utilisation of its

facility at Hosur for Dost, the light commercial vehicle (LCV) under the joint venture with Nissan, by next fiscal year. The LCV has reached sales of around

2,800 units a month. Around 20,479 units of Dost had been marketed across

eight states in the country so far. The sales are growing according to the demand

and the production capacity of 55,000 units a year, which the company set up at

Hosur facility, would be completely utilised by the next fiscal year.

While the company, along with Nissan, is planning to set up a greenfield facility

to manufacture Dost, at Pillaipakkam in Tamil Nadu, it expects capacity constrain

to continue till the new facility comes up. It has received around 280 acres at

Pillaipakkam from the government, and it would take 2-2.5 years to bring up the

greenfield facility. The company expects to cover 11 states and set up around 89

outlets by the end of March 2013. It would expand to Madhya Pradesh, the

National Capital Region and Uttar Pradesh within the time, said Nitin Seth,

executive director – LCV, Ashok Leyland. The all-India market share for Dost is

around 21 per cent. The company also expects its next product from the JV with

Nissan to be launched this month. To commemorate the first anniversary Dost,

the company has rolled out its limited version edition. Using the State-of-the-art

vehicle factory running to full capacity in Ras Al Khaimah, Ashok Leyland

increases stake in Optare plc to 75.1%. ALL has orders bagged for 290 double

decker buses for Bangladesh, 723 vehicles for Tanzania, 100 Falcon buses to

Ghana. Also the 816 minibus proves an instant success in Russia and Ukraine.

Commercial vehicle: Company-wise production (Annual)

Volumes from Pantnagar unit stands at ~7,000 units and U-Truck contributed ~2,000 units in Q2 FY12. ALL sold ~3,400 engines during Q2 FY12, and there is increasing shift towards in-house manufactured engines as compared to outsourced engines. The company has also raised engine prices ~4% during July 2011. Freight rates in Southern and Eastern region has moderated however rates have increased in Northern and Western region.

Joint Ventures

JV with Nissan: The JV has recently launched its first product ‘Dost’ under Nissan JV with volume of 210 units in October 2011. In order to avail VAT incentives, the products inside Tamil Nadu will be sold directly by JV whereas outside TN will be sold under ALL. The company is targeting target of 12,000 units in H2 FY12 and ~50,000 units in FY13.JV with John Deere: The JV is expected to start production from November 2011 with launch of Backhoe loader. The production will be gradually ramp up to ~9,000 units by FY13. JV with Continental: The JV has started supplying electronic components for ALL’s U-Truck platform, and ALL is expecting annual turnover of ~Rs 20 crore once operation stabilize.

Player 2007-08 2008-09 2009-10 2010-11 2011-12

Tata Motors 3,37,360 2,53,303 3,36,711 4,42,521 5,30,481

Mahindra & Mahindra Ltd. 64,235 60,708 95,460 1,17,468 1,50,077

Ashok Leyland Ltd. 84,006 54,049 64,673 95,337 1,03,267

Eicher Motors Ltd. 30,229 18,916 29,504 40,707 50,957

Force Motors Ltd. 11,772 7,618 11,684 22,601 24,867

Mahindra Navistar Automotives Ltd. - - - 10,170 14,423

Swaraj Mazda Ltd. 11,215 8,145 10,289 12,891 13,978

Piaggio Vehicles Pvt. Ltd. 5,113 9,206 11,095 9,140 10,703

Asia Motor Works Ltd. 3,645 2,752 3,475 6,578 9,913

Volvo India Pvt. Ltd. 1,058 1,912 1,483 1,644 1,220

Hindustan Motors 24 54 277 327 193

Daimler India Commercial Vehicles Pvt Ltd. - - - 188 120

JCBL Ltd. - - 179 - 1

Daimlerchrysler India Ltd. 123 297 174 - -

Tatra Udyog Ltd. 43 10 - - -

Grand Total 5,48,823 4,16,970 5,65,004 7,59,572 9,10,200

COMPANY ANALYSIS.

(Rs in Crs)             Year Mar 12  Mar 11  Mar 10  Mar 09  Mar 08 

  SOURCES OF FUNDS :           Share Capital  266.07 133.03 133.03 133.03 133.03

  Reserves Total 3,942.1

13,829.9

33,535.7

23,340.8

7 2,015.95  Equity Share Warrants 0 0 0 0 0

   Equity Application Money 0 0 0 0 0

  Total Shareholders Funds4,208.1

83,962.9

63,668.7

53,473.9

0 2,148.98

  Secured Loans  9601,113.3

3 711.57 304.41 190.24

 Unsecured Loans 1,333.3

51,234.8

01,568.8

71,653.7

3 697.26

   Total Debt2,293.3

52,348.1

32,280.4

41,958.1

4 887.5  Other Liabilities 80.15 78.47 0 0 0

   Total Liabilities6,581.6

86,389.5

65,949.1

95,432.0

4 3,036.48  APPLICATION OF FUNDS :          

 Gross Block 7,256.4

36,691.8

96,018.6

34,938.9

5 2,942.44

  Less : Accumulated Depreciation 2,342.9

32,058.1

01,769.0

71,539.8

3 1,416.89  Less:Impairment of Assets 0 0 0 0 0

  Net Block 4,913.5

04,633.7

94,249.5

63,399.1

2 1,525.55  Lease Adjustment 0 0 0 0 0

  Capital Work in Progress 548.22 357.97 561.47 998.29 529.24

 Investments 1,534.4

81,230.0

0 326.15 263.56 609.9   Current Assets, Loans & Advances          

  Inventories 2,230.6

22,208.9

01,638.2

41,330.0

2 1,223.91

 Sundry Debtors 1,230.2

51,164.5

01,022.0

6 957.97 375.84  Cash and Bank 32.56 179.53 518.92 88.08 451.37

 Loans and Advances  810.45 430.84 972.91 789.54 824.14

   Total Current Assets4,303.8

83,983.7

74,152.1

33,165.6

1 2,875.26  Less : Current Liabilities and Provisions          

 Current Liabilities 4,423.3

33,342.9

32,592.0

61,872.7

1 1,926.71  Provisions  420.37 416.94 368.69 268.08 345.23

  Total Current Liabilities4,843.7

03,759.8

72,960.7

52,140.7

9 2,271.94

   Net Current Assets -539.82 223.91,191.3

81,024.8

2 603.32 Miscellaneous Expenses not written off  0 0 5.17 9.69 22.29

   Deferred Tax Assets 25.9 23.43 26.08 74.99 15.96  Deferred Tax Liability 516.27 467.32 410.62 338.43 269.78   Net Deferred Tax -490.37 -443.89 -384.54 -263.44 -253.82

  Other Assets 615.67 387.79 0 0 0

   Total Assets6,581.6

86,389.5

65,949.1

95,432.0

4 3,036.48 Contingent Liabilities 535.73 440.88 312.28 418.63 1,100.89

MARKET VALUE OF SHARES

Key Financial data of the company:

S.No Data Entries

1 Face value 1.00

2 Market Price Today  25.70

3 52W H/L 20.05/32.90

4 Market Cap (Rs Cr) 6,837.94

5 BookValue 10.89

6 P/BV 2.36

7 P/E (TTM) 12.79

9 M.cap/Sales 0.451

10 Dividend(%) 100%

11 DPS 1

12 Dividend Yield 3.89%

13 Avg daily volume 59.46 lakhs

14 Beta 1.27

15 EPS 2.01

16 Industry P/E 12.92

17 ROE 13.85

18 Payout/Retention ratio 1.21

Key Financial ratios comparison:

Return on Equity:

Earnings per share:

Price to earnings:

The Debt value has risen comparing to the previous yearsThe P/E Ratio is well above the market average of 12.92. The EPS of the company has fallen drastically indicating a bad situation.Industry P/E = 12.92

BETA VALUE OF THE COMPANY:

ri = rf + β ( rm – rf )

rf = 0.081

β = ??

rm – rf = 0.065

ri=16.355%

ri = 0.081 + β(0.065)

     =1.27

β=1.27

INVEST WITH ASHLEY??!

The results as far as analyzed  have not been satisfactory with regard to the industry values thus when planning invest on the stocks of a Commercial vehicle segment, it is advisory not to invest or take huge risks in investing in the stocks thought the stock is growing in its value day by day.

MARKETING COMMUNICATION

Some brands make trial offers. Some others offer test drives. But at Ashok Leyland we reach out directly to our customers through customer events. These are platforms for us to share the latest industry trends and developments; for customers to know more about our vehicles; for us to share important information on vehicle maintenance and efficiency and most importantly, for them to experience our vehicles. Organized and conducted at various strategic locations across the country, these events provide an opportunity for customers to interact with our sales and marketing personnel.

Ecomet Mega Melas

The ICV (Intermediate Commercial Vehicle) segment has been witnessing robust growth with monthly sales touching close to 5,000 vehicles. Ecomet is the widest and longest vehicle in its segment and offers the twin advantages of a long vehicle in a smaller vehicle category. With higher engine power and torque, the Ecomet Strong offers higher payloads and increased profits while the Ecomet Smart offers faster turnaround time. In fact, the tyres of the Ecomet tipper are the same as used in the MDV category: 8.25x20 PR. It offers the largest capacity in its segment – 6 cubic metres (210 cft) and also boasts air brakes with S Cam, power steering, under-body tipping mechanism and drop-side deck load-body.

To gain a larger share of this growing market, we conceived the ‘Ecomet Mega Mela’– an ideal platform for customers to understand the Ecomet and to get a firsthand experience of the vehicle. With a customised float travelling across important hubs, at these Tipper Melas customers can play exciting games, win attractive prizes, learn more about the product, test drive the vehicles and also get on-the-spot offers. The activity is conducted by a trained team that manages these standardised modules across the country. Santosh Kumar, a fleet owner who had attended one of the EcometMela says, “I have two Ecomet 1212s and before the end of this year, I plan to have two more of these thanks to the good promotional offers that the Company announced at the Mela.

Over the last one year, we have conducted over 500 such Melas and these have been very well received by the transport industry.

Tipper Melas

Tipper Melas help us understand changing customer needs and expectations in the mining and construction industry. It also provides an opportunity for customers in remote locations and smaller satellite towns to interact with our sales teams and understand the various features of our tippers. Tipper Melas showcase the entire range of our tippers with special offers and spot offers by leading financiers. Not only do they allow us to reach-out to customers, they also provide great visibility for brand Ashok Leyland. RajiveSaharia, Executive Director, Marketing, Ashok Leyland said, “The primary objective of these events is for existing and prospective customers to get to know our vehicles and for them to firsthand appreciate their superior features and performance potential. The response and the outcome from such events has been extremely

encouraging and we will be pushing these activations into a higher gear going forward.”

Sabse Bada Sikandar Kaun?

A highly competitive space, where minor differences can come at the cost of a sale, the MAV activity, called SabseBadaSikandarKaun? is designed to establish2516il, 3116il and 3118il as the most competitive models (in terms of mileage, load-carrying capacity and serviceability) in their segment. The objective of the programme is to provide a touch-and feel experience to customers, so they can see and feel the difference first-hand. Launched in Kolkata, it covered over 23locations, generating walk-ins and leads. The event highlighted the working of the inline fuel injection pump and its benefits. A live model of an engine was displayed to demonstrate the working of the inline fuel injection pump. This created an exciting platform to engage with the audience and to help them understand the superiority of ALL’s vehicles in very practical and scientific way. These events, like all others, are managed by professional activation agencies that help spread awareness and create excitement about the event. An emcee helps to engage the audience and demonstrates the superiority of the product. Along with a demo of the inline FIP engine, interactive games like arm wrestling & jigsaw puzzles are used to establish key product benefits. Prospective customers are offered test drives and attractive finance offers are also made available. The whole process creates a lot of goodwill and connects on-ground with the target group, and we are confident that sustained efforts will have a positive spin-off for us in the long run.

Interview Schedule

We are carrying out an evaluation of Customer preference in commercial vehicles industry. Would you mind answering a few questions on your experience? (If they decline, discontinue the interview and thank them.)

Your answers will be treated with confidentiality among project staff for the purpose of evaluating the CV scenario, and in the production of the project report. All responses will remain anonymous. However, we would like to talk to you again in about 12 months’ time to see how things have changed. Would you be agreeable to that?

How would it be best to contact you later on?

1. Name …………………2. Address ………………….3. Phone Number ………………….4. Occupation ………………….

Q1. What factors help you decide which vehicle to buy?

Q2. Which brand do you prefer for Commercial vehicles?

Q3.What advantage does Ashok leyland vehicles provide over its competitors?

Q4.In which areas is Ashok Leyland lacking behind?

Q5.How is the pricing of Ashok Leyland as compared to other market players?

Q6.What do you think differentiates ALL from other brands?

Q7.In which regions does ALL dominates?

Q8. How strong is the Dealer network of Ashok leyland in and around your state?

Findings

TataCheap to buyDecent FErelatively underpowered, hence as mentioned before, run in mostly level roadslighter, shorter busesCheaper sparesHigher frequency of repairssomewhat quiet and refined, especially the newer designs with the low engine bay & cable operated(?) gearboxCummins & other third party engine versions are crap

ALExpensive Doesn’t come with the front grilleQuite powerful, so used in their ghat section routesspares are expensive, but last, hence general perception of solid buildNoisy & not as refinedlonger chassis. Nobody in the north seems to want themSemi forward options for trucks limited/not as goodJury is still out on the hino engines

Ashok Leyland’s strong points seem to be that its products are rugged , tough and reliable, The cost of ownership for Ashok Leyland products is much lesser than others.

Leylands simply rule in and around Karnataka, Kerala and Tamil Nadu. They are a lot slower to accelerate but once speed is built no TATA can come close. Drivers and operators are all praises for Ashok Leyland. Almost every tour operators tell that tatas does not perform well after 2 years

“AL- it’s more reliable than a tata and can take the mountains much more easily when compared to tata but the FE is less and has a little less loading space TATA- FE is more and also loading area but the vehicle has reliability issues

Eg. our 1 year old 1613tc(i think) with 55k on the clock had a blown head gasket when climbing a mountain in HP.

Similar AL trucks carrying much more heavy load and much older don't have this problem and the above problem is not one single incident, the Himachal area is full of such incidents so in the end i will prefer AL and is also preferred by all the truck driver i have talking to.”

It’s all about how aggressive the company is in its sales strategy. Commercial vehicle is a segment where the loyalties are hard to break as earnings are directly linked ot it. North India is strong point of TATA's specially Jammu and Kashmir. Ashok Leyland is slowly inching its way forward. Things would be interesting with Mahindra joining the race and slowly GM getting into it. Tata CVs tend to have better ergonomics than the counterpart AL CVs.

The major advantage of AL in my opinion is - they can develop a dedicated engine for Indian market conditions, while TML has to use (or adapt) an engine from the Cummins global product portfolio.The Dost is definitely leagues ahead of the Ace or the Maximo. the interiors are also pretty goodIt is unfair to compare the Dost with the Ace or the Maxximo as the Dost is in a different segment altogether (1-2 Ton payload) and comes almost a lakh dearer than the Ace / Maxximo. A more apt comparison would be the Super Ace which surprisingly carries a 2 - 3 month waiting list. 

The biggest disadvantage with Dost is its Suspension set up, particularly in the front. Indian drivers are used to overloading for which Leaf spring suspension the best is suited. The suspension set up of Dost, can be a big downside for the potential buyers.