Download - Ashok Leyland Case

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BUS & COACH INDUSTRY BUS & COACH INDUSTRY

INDIAINDIA

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Hinduja Group : Business Activities

Media & Entertainment

IT/ITES

Automotive Banking & Finance

Real Estate

Energy & Chemicals

The Indian Economic Scenario

&

The Key Growth Drivers

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Robust Economic Growth Projections ~ 7 % to 9 % --Short to Medium Term

Source : CSO, JCIF

GDP Growth (%)

India’s Macro Economic Growth

Source : Citigroup estimatesSource : Citigroup estimates

GOOD

FUTURE OUTLOOK

CURRENT PERFORMANCEBAD GOOD

PERFORMANCE PARAMETERS

Fiscal Deficit

FDI Inflows

Economic reforms

inflationNew Investment

Financial Reforms

Overall GDPExternal Debt

Current Account

Savings

Industrial Growth

Forex Reserve

Agricultural Growth

Internal Debt

Service sector Growth

Favourable Economic Parameters

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Source: Ashok Leyland Limited

15%

17.0%

15.3%15.9% 15.5% 15.0%

FY03 FY04 FY05 FY06(E) FY07(F) @ FY11(F)

10%

14.5%14.0%13.9%13.3%

10.5%


10%

13.5%12.5%14.4%11.6%

-6.2%


9%

12.0%12.0%

5.2%7.0%7.4%


AUTOMOBILE CAPITAL GOODS

CONSUMER DURABLES CONSTRUCTION

Snapshot – Growth Projections Sector Wise

ROBUST

GROWTH

• In 2020, the US and China will still be the two largest economies in the world (in PPP)

• India leaves Japan behind and moves up to 3rd place

• India, Malaysia and China will post the highest GDP growth rates (above 5%) over 2006-20

• Ireland, the US and Spain are the rich countries expected to grow the most

The Global Economic Forecast: Asia poised to be the

emerging power house of growth

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Commercial Vehicle Industry – Changing Scenario

Source : SIAM. ACMA, AL Source : Mckinsey , AL

� The industry has grown at a CAGR of 14% p.a over the last 5 years , size is over US $ 34 Bn in 2006-07

� With the potential to emerge as one of the largest in the world. Presently, India is

� 2nd largest two wheeler market in the world

� 4th largest commercial vehicle market in the world

� 11th largest passenger car in the world and is expected to be the 7th largest market by 2016

� The components industry has grown at 17% CAGR over the last few years, size is over US$ 10 billion in 2005-06

Indian Automotive Sector – Profile

Indian Automotive Industry

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Long Distance Haulage

Special Application Vehicles

Short Distance Haulage

Inter City Public Transport

Intra City Public Transport

Distribution Network

Last Mile Haulage

> 500 Kms

10 -250 Kms

101-250 Kms

51-500 Kms

< 500 Kms

51-100 Kms

< 50 Kms

Indian CV Industry – Broad Scope

1950-80 1980-2007 1950-2007 2007 -

Impact of Globalization in Indian Auto Sector

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WTO Regime & Increasing Competition

Stiff Emission & Other Regulatory Changes

Competition from

Alternative Modes

KEY

CHALLENGES

Cyclicality of Businesses

Increasing Customisation& Application Proliferation

Accelerated Infrastructure Development

Operating Cost Pressures

Accelerated Technology Upgradation Requirements

& Other Change Needs

Requirements

Increased Customer Awareness

Indian CV Industry – Challenges

BUS & COACH INDUSTRY INDIA –

CHANGING SCENARIOS

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Source : A T Kearney, AL

Evolution of Bus Market with Changing Economies

Indian Bus Market Projections

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What's Driving the change in Indian Bus Market A

Increased Disposable Income Increased Disposable Income –– Fast Fast

Changing Spending HabitsChanging Spending Habits


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Source : AL

AAAAAAAAA.Emission Norms Worldwide

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What's Driving the Growth in Indian Bus Market A

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Technological Developments & Need for Sophistication

Technological Developments in the Way we Travel

Process Improvement - Skill Based to Tool Based

What's Driving the Growth in Indian Bus Market A

Source : A T Kearney, AL

Bus Market – Product Evolution

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Industry’s response to Globalization

� Introduction and Implementation of Bus Code for all

OEM’s by 2008

� Accreditation of all Unorganized Bus Body builders

distributed across India

Bus Body Code Practices - India

• Type of Operations

• Type I : Urban & Sub urban Transport

• Type II : Inter Urban Transport

• Type III : Long Distance Passenger Transport

• Type IV : Special Purpose vehilces

• Comfort

• NDX : Non Deluxe Bare Minimum Comfort Level

• SDX : Semi Deluxe Slightly Higher Comfort Level

• DLX: Deluxe High Comfort Level and Individual Seats

• AC Deluxe : Ultra Deluxe Bus with Air Conditioning

� BUS Code Talks about Classification of Buses based on

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Accreditation of Bus Body Builders

Accreditation for bus body builders to be made must By Our Special Correspondent

CHENNAI, OCT. 11. The Centre will soon issue a notification making it mandatory for all bus body

builders to obtain "accreditation" and also come out with supplementary directive to facilitate the

State transport authorities to implement the official order. Giving this information while

addressing the 209th meeting of the Standing Committee (Suppliers and Contract) of the

Association of State Road Transport Undertakings (ASRTU), the Director of Central Institute of

Road Transport (CIRT), Pune, A.S. Lakra, explained this new order was being introduced as part of

the reforms process in the transportation sector.

"The process of accreditation of the bus body builders has been approved by the Government of

India and every bus body builder has to be accredited from now on," Mr. Lakra said.

• All Bus Body Builders apart from OEM’s to be accredited as per the Mandatory

Regulations to be Introduced

• Unorganized way of Body Building to be converted into Organized sector which

will improve the Overall Quality of the Product and People.

Bus Industry Classification

Key Drivers , Changing Specifications & AL response

Ashok Leyland Response Segment Wise

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Buses

MDV ICV / LCV

Intra- City Inter- CityStage Carriers

InstitutionsStage Carrier

Institutions

Broadly Indian Bus Market can be Classified as following:

Stage Carriers

Multi- Leaf Spring SuspensionRugged Vehicle for Harsher Conditions

Non Air Conditioned Ordinary

Bus CoachOver Loading Capacity

Standard Aggregates with higher

reliability

Flexibility of Stoppages according to

passengers needs

3x2 Seating LayoutEconomy Class Catering to masses

< 180 HP , Front EngineDaily Movement of Passengers from

Small Towns En- Route to Bigger Cities

Changing SpecificationsKey Drivers Stage Carrier Stage Carriers

Semi Deluxe AC DeluxeDeluxe

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Institutions

AC / Non AC Saloons with WIFI

enabledUrban Congestion

Air SuspensionGrowing demand for Customized Service

2x2 Seating Layout with High

head Rest SeatsAcademic Institutions

< 180 HP , Front Engine

Rapid Growth of Corporate / Industries in

Special Economic Zones & Cities like

BPOSs, ITES etc

Changing SpecificationsKey Drivers InstitutionsInstitutions

School Staff

Inter-city Travel

Built in Reliable Entertainment

Systems / GPRS/ Wi Fi enabled

Saloon

Growth in Urban Population & Increasing

working age population

Monocoque / Space Frame Shell

Type Coach ConstructionLow cost of setting up Infrastructure

2X2 , 2X1 Seating Layouts ; >

1000 mm Seat PitchNo gestation period

High End Re-clinable SeatsEconomical over Short Distances

Air Conditioned Saloon with

individual controls

Need for Extra Comfort – Better Quality

Buses

Air Suspension, RetardersSafer Travel

> 260 HP; Rear Engine Euro IIImproving Road Infrastructure / Turn

Around Time

Changing SpecificationsKey Drivers Inter-city

Inter- City

Semi Deluxe AC DeluxeDeluxe

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ASHOK LEYLAND LUXURA

INTERCITY COACH

Intra- City Travel

Intra- City

Rising Income Levels ,

growing

Safer Travel

Improving Road

InfrastructureFuture lies

in implementation of

BRTS

Urban Congestion

Changing

SpecificationsKey Drivers Intra-cityEntry plus 2 Steps

Low Floor Step Less

Entry plus 1 Step

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Why BRTSAA.

Why BRTSAA.

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Why BRTSAA.

Advantages of BRTS

� One Tenth the cost of a Rail System

� Unlike a Rail System , BRTS is dynamic and can change as

city changes

� Reduction in NETT pollution with stricter Emission norms being

introduced

� Reduced Congestion due to excessive bus lanes would improve

the quality of service

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Ashok Leyland – BRTS Response

In INDIA ASHOK LEYLAND is partnering with various Government bodies and

STUs to introduce BRTS enabled buses in India

• Operational

• Introductory Stage

NAAvailable on Viking

& 12 Meter DieselAvailable

Available on

CNGAvailableDirect Drive AC

6025252525Standees

6235-6745-5040-4435-40Seating Capacity

Front,

Middle & RearFront & Rear

Front,

Middle & Rear

Front &

MiddleFront & MiddleDoor location

32222No of Doors

FrontFrontFrontRearRearEngine

BS II, BS III &

CNG BS III

BS II, BS III &

CNG BS III (Viking)BS III

BS II, BS III &

CNG BS IIIBS III & CNG BS IIIFuel

Entry + 3

Entry + 3 / Entry +

0

Entry + 3Entry + 2Entry + 1 /

Entry + 2Entry + 0Step

10501050860635390Floor Height (mm)

1600010000 - 12000110001200012000Overall Length

(mm)

VestibuleCheetah, Viking & 12 Meter

Viking SLFPanther LFULE BusModel

Ashok Leyland – BRTS Response

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• AL has developed expertise through its Advanced engineering

arm & can support /assist in :

a. Telematics /Vehicle tracking

b. Fleet management system

c. IT enabled fare collection

• AL has a Project Services Division with capability on

Project & fleet management/ transport system; the company’s

knowledge base/experience on vehicle design and manufacturing

would effectively supplement.

Comprehensive range of products/service with complete

expertise under one roof

Way Forward))))

Presented By:Presented By:

Rajinder MalhanRajinder Malhan

Exec. Director Exec. Director –– Intl. OperationsIntl. Operations

Ashok Leyland LimitedAshok Leyland Limited

[email protected]@ashokleyland.com