SHRI SHANKARACHARYA INSTITUTEOF

MANAGEMENT AND TECHNOLOGY

A Study on Factors Influencing the Consumer Preference of Four Wheeler

Commercial Vehicles Purchase in Raipur

(CONSUMER BEHAVIOUR)

SUBMITTED BY: -ANIL KUMAR SHUKLA MBA IIND SEM “B”

GUIDED BY: SAKET RANJAN PRAVEER SIR

Commercial vehicle

A Study on Factors Influencing the Consumer Preference of Four Wheeler

Commercial Vehicles Purchase in Raipur1) Profit-2) Mileages-3) Maintenance-4) Parts-5) Resale values-6) Loading capacity-7) Tyres-

Main players in the Production of Commercial Vehicles in India

Ashok Leyland Ltd. Hindustan Motors Ltd. Telco Force motors Ltd.( Previously known as Bajaj Tempo Ltd) Eicher Motors Ltd. Mahindra & Mahindra Ltd. Swaraj Mazda Ltd. Tata Motors

Ashok Leyland

Ashok Leyland is one of the biggest players in the Production of Commercial Vehicles in India. Ashok Leyland is one of the oldest automotive company of India. It was set up in 1948 in Madras (now called Chennai) to assemble Austin cars. However, the company's future changed after British Leyland made equity participation. Hence the company became Ashok Leyland in 1955 and started the Production of Commercial Vehicles. They offer a wide range of in Heavy and Light Commercial Vehicles varying from buses,

trucks, engines to special application vehicles. They were the first company in the history of Indian to win the ISO 9002 Certification in 1993. Again it became the first Indian company to receive ISO/TS 16949 Corporate Certification. Their global ambition is very simple, it is; Global Standards, Global Markets.

Hindustan Motors Ltd

Hindustan Motors Ltd is one of the oldest car manufacturing company of India. It was founded in 1942. It manufactures a wide range of vehicles from cars to trucks to school buses to trekker to porter. However, it is more popular for one of its particular car model called the Ambassador. But, at the same time it does manufacture a lot of Commercial Vehicles as well. It was one of the leading players in cars till the early 80's but could not maintain its position after globalization came into effect and the markets were opened. It has its manufacturing plants in Uttarpara- West Bengal, Pithampur- Madhya Pradesh, Thiruvallur- Tamil Nadu and Hosur- Tamil Nadu.

Telco

Telco deals with Heavy Commercial Vehicles, Light Commercial Vehicles, Multi-Utility Vehicles etc. Telco was set up in 1945 to manufacture steam locomotives. Now it's the largest private sector company in Commercial Vehicle manufacturing. The four manufacturing plants of Telco are located in Jamshedpur in Jharkand, Pimpri and Chinchwad in Pune ( Maharashtra) and Lucknow in Uttar Pradesh. It has a market share of 31.2% in Multi Utility Vehicle Segment. Force motors Ltd. (Previously known as Bajaj Tempo Ltd)Force motors Ltd. (Previously known as Bajaj Tempo Ltd) is a promising company in the Commercial Vehicle segment. The company is now working on the project of introducing state-of-the-art range of trucks. The company has different technological collaboration with many international giants. Hence, it has an upper edge with new and modern technology. They are also working on eco friendly CNG bus engines. They are the only company to have a full range of Commercial Load carrying vehicles.

Eicher Motors Ltd.

Eicher Motors Ltd. deals with the manufacturing of Commercial Vehicles. They mainly deal with buses, trucks and chassis. These products comply with all the specifications of BS II norms. Its CNG Technology is also known to be the very best in the market.

Mahindra & Mahindra Ltd.

Mahindra & Mahindra Ltd. has a hugh Indian market with Multi Utility Vehicles. It was originally set up in 1945 to cater to general purpose utility vehicles. However, today it is one of the top five manufacturers of tractors in the world.

Swaraj Mazda Ltd.

Swaraj Mazda Ltd. deals with the manufacturing of Light Commercial Vehicles. They mostly manufacture buses, trucks, police personnel carrier, ambulance, water tankers and special vehicles. The company was formed in 1983 and production started from 1985.

Tata Motors

Tata Motors is one of the most important fore runners of the Indian automobile industry. They believe in focus and state-of-the-art facilities. They probably have the best infrastructure required for the assurance of manufacturing quality vehicles. They deal with M&H Commercial Vehicles, Intermediate Commercial Vehicles, Light Commercial Vehicles, Small Commercial Vehicles, Utility Vehicles Etc. In the Commercial Vehicles segment, they mostly manufacture buses and trucks. They even have a good range of passenger vehicles as well.

Market share (Commercial Vehicles)

The company’s sales of commercial vehicles in February 2007 in the domestic market were 27,859 nos., an increase of 22% over 22,885 vehicles sold in February last year. M&HCV sales stood at 16,306 nos, a growth of 19% over February 2006, while LCV sales were 11,553 nos., a growth of 25% over February 2006.Cumulative sales of commercial vehicles in the domestic market for the fiscal were 2,68,453

nos., an increase of 43% over last year. Cumulative M&HCV sales stood at 1,55,708 nos., an

increase of 40% over last year, while LCV sales for the fiscal were 1,12,745 nos., an increase of

48% over last year.Sales figures (in units) of major Indian players of LCVs in Indian market

source:- www. Commercial vehicle indusrty in indiaExports figures (in units) of major Indian manufacturers in LCV segment* The figures are based on SIAM analysis and individual company's reports.Tata Motors, Mahindra & Mahindra, Ashok Leyland, Swaraj Mazda, General Motors, Renault, Toyota and Volkswagen are delivering LCV in Indian market. Some of the Indian manufacturers such as Tata Motors, Mahindra & Mahindra, Ashok Leyland, Swaraz Mazda, etc have entered global markets with their LCVs.

During financial year 2005-06, sales of LCVs in Indian market showed a growth of 19% with an increase of 60% in exports by Indian LCV manufacturers.

Production

During financial year 2005-06, Indian MHCV production showed a growth of 2.09% over preceding year. MHCVs have been showing an upward production trend. At present, there are more than 2.19 lakhs MHCVs being manufactured in Indian automobile sector.

Production trend in Indian MHCV segment is as follows

More on production in the MHCV segment   MHCV Production

Sales in Indian automobile industry- Domestic and Exports

During financial year 2005-06, MHCV sales in Indian market showed a growth of 4.50%, with increase in exports by more than 4%. In the same period, cumulative sales of MHCVs in Indian market amount to 2.07 lakhs, with more than 14 thousand units exported by Indian manufacturers.

Sales trend of MHCVs in Indian market Export trend in MHCVs

SOURCES:- www.Commercial vehicle industry in india

Light Commercial Vehicles

Indian automobile industry witnessed a growth of 32.86% in light commercial vehicles

segment. Indian light commercial vehicles (LCVs) include a range of vehicles, such as

cargo, tempo, mini trucks, buses, etc. A few of the passenger cars, such as vans, are now

being treated as LCVs. Tata Motors, Mahindra & Mahindra, Ashok Leyland and Swaraj

Mazda are the leading Indian manufacturers of LCVs.

Production

During financial year 2005-06, Indian LCV production showed a growth of 23.68% over the

preceding year. LCVs have been showing an upward production trend. At present, there

are more than 1 lakh LCVs (in units) being manufactured in Indian automobile sector.

Production trend in Indian LCV segment

SOURCES:- www.Commercial vehicle industry in india

More on production in LCV segment           LCVs Production

Sales in Indian automobile industry- Domestic and Exports

During financial year 2005-06, LCV sales in Indian market showed a growth of 19.44%, with increase in exports by more than 60%. In the same period, cumulative sales of LCVs in Indian market amounts to 1.43 lakhs, with 26.4 thousand units exported by Indian manufacturers.

Sales trend of LCVs in Indian market

SOURCES:- www.Commercial vehicle industry in india

Exports trend of Indian LCVs

SOURCES:- www.commercial vehicle industry in india

Browse Trucks by Company

Ashok Leyland Force Motors Hindustan Motors Mahindra & Mahindra

Swaraj Mazda Tata Motors Volvo  

Ashok Leyland

Haulage

4x2 Haulage Models 1613 H 1612 H Comet 1611 1613H/2 (12M Goods) 4/51GS 1613 S 1616 H

1616H - BS III

Multiaxle Vehicles 2214 (6X2) 2516 H (6X2) 2514 H (6X2) 2516 H (6X 4)

2516H/4C

Hippo Haulage Beaver Haulage

Tippers

Hippo Tipper Stallion Mk III Tipper

4x2 and Multixled Tippers CT 1613 H/1 (4X2) Taurus 2516/2 (6x4) 1613 ST (4x2) Taurus HD 2516MT/1 (6x4)

CT 1613 H/2 (4x2)

 

Rigid Trucks

Beaver Tractor Hippo Tractor

Ecomet Ecomet 912

Ecomet 1112

 

Force Motors

Haulage

CLA 40.280 CLA 49.280  

Hindustan Motors Ltd.

Rigid Trucks

Mascot T-480 FC Pick-Up Cargo

Porter Plus    

Mahindra & Mahindra Ltd.

Cabs

Pic-Up Range Mahindra Utilty Mahindra Pik-up Mahindra NC640DP

Pik-Up CBC

Hard Top Range Mahindra Economy Mahindra Marshal DI Mahindra 775 XDB Mahindra 3door Hard Top

Mahindra 5door Hard Top

LCV Range Mahindra CabKing 576 Mahindra DI 3200 Mahindra Cab King 576 DI Mahindra Load King DI

Maxx Maxi Truck

 

Delivery Van

Mahindra Voyager Delivery Van

Swaraj Mazda

Rigid Trucks

Sartaj V W 26-S Premium Truck Swaraj 4 Wheel Drive

Applications

Super ZT54Swaraj Mazda Water Tank  

Tata Motors

Rigid Trucks

Tata Novus Tata Ace

Rigid Trucks LPT 1109 Turbo Truck LP 1109 Turbo Truck TL 4x4 SFC 407 Ex Turbo Truck SFC 407 Turbo Truck LPT 709 E Truck LPT 407 Turbo Truck

SFC 709 E Aerial Lift Turbo Truck

 

Volvo

Rigid Trucks

Volvo FM Volvo FH

Tippers

Volvo FM9 Tippers FM400 8x4 Tipper

FM340 6x4 Tipper

 

Trucks in India

Trucks in India are the major commercial vehicles pertaining to transportation of goods. Trucks in India fall under the heavy vehicle segment and are considered the lifeline of

all the major trade and commerce activities.

Trucks are generally used for the purpose of transporting materials and goods in huge volumes. Trucks in India are considered very important for the growth and smooth flow of commercial activities. Trucks in India are divided into categories on the basis of their usage.

The different categories trucks in India are: Haulage trucks Tipper trucks Rigid trucks Cab trucks Trailers trucks Delivery vans

Major manufacturers of trucks in India: Tata Motors Ashok Leyland Swaraj Mazda Eicher Hindustan Motors Mahindra & Mahindra Volvo

The product line of the manufacturers of the trucks in India:

Ashok Leyland:Haulage

4x2 Haulage Models Tusker Super 1616 Bison Haulage Comet Gold 1613

Multi-axle Vehicles Tusker Gold 2214-6x2 Taurus 2516-6x4 Tusker Super 2214-6x2 Taurus 2516-6x2

Hippo Haulage Tusker Turbo Tractor3516 Artik 30.14 Tractor

Eicher 10.5 Jumbo 20.16 E2 Series Galaxy 30.25 10.75 F Bus Chassis

Force Motors Excel-4,3600mm WB Excel-4,3100mm WB Kargo King DCPU

Hindustan Motors Ltd. MASCOT T-480 FC Cargo

Mahindra & Mahindra Ltd. Mahindra Utilty Mahindra Pick-Up

Hard Top Range Mahindra Marshal DI Marshall Deluxe Royale Marshall Deluxe

LCV Range Mahindra CabKing 576 Maxx Maxi Truck Mahindra LoadKing

Delivery Van Mahindra Voyager Delivery Van

Swaraj Mazda High deck

Swaraj 4 Dumper

Tata Motors Rigid Trucks

Tata Ace LP 1109 Turbo Truck Tata SFC 410 EX SFC 709 E Aerial lift turbo Truck Tata LPT 712 EX SFC 407 Turbo Truck LPT 407 Turbo Truck

Trailers LPS 3516 TC 4x2 BS2 LPS 3015 TC 4x2 BS2

Cabs Tata 207 DI EX- Single Cab Tata 207 DI - Crew Cab Tata 207 DI - Single Cab

Volvo Rigid Trucks

Volvo FM9 300 hp 4x2 Tractor Volvo FM9 300 hp 6x4 Tractor Volvo FM12 460 bhp 6x4 Puller

Volvo FM12 380 bhp 6x4 Heavy Duty Tractor

Tata motorsTata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer.

The company's 22,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics." Tata Motors helps its employees realise their potential through innovative HR practices. The company's goal is to empower and provide employees with dynamic career paths in congruence with corporate objectives. All-round potential development and performance improvement is ensured by regular in-house and external training. The company has won several awards recognising its training programmes.

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across India - Jamshedpur (Jharkhand) in

the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The company also has a strong auto finance operation, TML Financial Services Limited, supporting customers to purchase Tata Motors vehicles.

Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and Tata cars and Fiat powertrains for the Indian and overseas markets; Tata Motors already distributes and markets Fiat branded cars in India. In 2007, Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Córdoba, Argentina. The pick-up will be sold in South and Central America and select European markets.

These linkages will further extend Tata Motors' international footprint, established through exports since 1961. While currently about 18% of its revenues are from international business, the company's objective is to expand its international business, both through organic and inorganic growth routes. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal.

 

The foundation of the company’s growth is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. The R&D establishment includes a team of 1400 scientists and engineers. The company's Engineering Research Centre was established in 1966, and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering technologies and products. It was Tata Motors, which developed the first indigenously

developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. The ERC in Pune, among whose facilities are India's only certified crash-test facility and hemi-anechoic chamber for testing of noise and vibration, has received several awards from the Government of India. Some of the more prominent amongst them are the National Award for Research and Development Efforts in Industry in the Mechanical Engineering Industries sector in 1999, the National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern in 2000, and the CSIR Diamond Jubilee Technology Award in 2004.

The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in the UK. TMETC is engaged in design engineering and development of products, supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle Company and Hispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragoza in Spain.

The pace of new product development has quickened through an organisation-wide structured New Product Introduction (NPI) process. The process with its formal structure for introducing new vehicles in the market, brings in greater discipline in project execution. The NPI process helped Tata Motors create a new segment, in 2005, by launching the Tata Ace, India’s first indigenously developed mini-truck. The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focussing on environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations.

Commercial vehicle sales up 35% 

Surging truck sales of Tata Motoers Ashok Leyland and Eicher Motors

drove commercial vehicle sales up by 34.6 per cent during the first eight months of this fiscal.

A total of 153,000 buses and trucks were sold during April-November 2007 as against 114,000 units in the same period last year, data compiled the Society of Indian Automobile Manufacturers showed.

The sale of medium and heavy commercial vehicles, which comprises over 60 per cent of total industry sales, grew by 40 per cent to 93,369 units while that of light commercial vehicles jumped by 27.3 per cent to 60,190 units.

In the M&H category, truck sales went up by 43.2 per cent to 78,111 units, while bus sales grew 24.6 per cent to 15,258 units.

Light truck sales rose by 38.4 per cent to 47,901 units, but that of light buses declined by 2.7 per cent to 12,289 units.

Commercial vehicle sales, a good indicator of economic growth, have been rising this fiscal mainly due to the prime minister's ambitious national highway development project and rural road network.

Abundant rainfall coupled with forecast of higher agricultural production and positive sentiments also spurred demand.

In the medium and heavy duty truck segment, sale of Tata Motors surged by 40.5 per cent to 51,902 units and that of Ashok Leyland by 54.7 per cent to 19,594 units.

Eicher Motors and Swaraj Mazda's M&H truck sales also jumped by 29.6 and 77 per cent to 4,647 and 1,815 units, respectively.

But, sale of heavy duty truck makers, Tatra and Volvo, fell by 20 and 64.7 per cent to 72 and 81 units respectively.

In the heavy bus category, Tata Motors and Ashok Leyland's sales surged by 31 and 12 per cent to 7,979 and 6,807 units, respectively.

New entrant Eicher Motors and Swaraj Mazda sold 265 and 102 units, respectively while that of Volvo went up by 69.3 per cent to 105 units.

In the light truck category, sales of Tata Motors jumped by 63 per cent to 25,030 units but that of Ashok Leyland dived by 61.5 per cent to 30 units.

Mahindra and Mahindra M&M) and Bajaj Tempo clocked a 26 and 76.8 per cent rise at 16,208 and 1,753 units, respectively.

Sales of Swaraj Mazda and Eicher Motors slipped by 10.7 and nearly one per cent to 2,494 and 2,216 units, respectively.

Hindustan Motors posted a 40.3 per cent dip to 170 units. In the light bus category, Tata Motors and Ashok Leyland witnessed 10.4 and 195.5 per cent rise to 4,759 and 198 units, respectively.

Bajaj Tempo clocked a 66.6 per cent growth to 3,110 units but sales of Swaraj Mazda dipped 24 per cent to 1,150 units.

Sales of Eicher, M&M and Hindustan Motors declined by 27.5, 34.2 and 77.8 per cent to 787, 1,974 and 311 units, respectively.

  

 

TL 4x4 Tata SFC 410 EX Tata LPT 712 EX

     

Tata 207 DI EX- Single cab Tata 207 DI - Single cab Tata 207 DI - Crew cab

     

SFC 407 EX Turbo SFC 407 Turbo Truck LPT 709 E Turbo Container truck

     

 

   

   

  

 

TL 4x4 Tata SFC 410 EX Tata LPT 712 EX

     

Tata 207 DI EX- Single cab Tata 207 DI - Single cab Tata 207 DI - Crew cab

     

SFC 407 EX Turbo SFC 407 Turbo Truck LPT 709 E Turbo Container truck