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%
FY03 FY04 FY05 FY06(E) FY07(F) @ FY11(F)
10%
13.5%12.5%14.4%11.6%
-6.2%
FY03 FY04 FY05 FY06(E) FY07(F) @ FY11(F)
9%
12.0%12.0%
5.2%7.0%7.4%
FY03 FY04 FY05 FY06(E) FY07(F) @ FY11(F)
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
What's Driving the change in Indian Bus Market A
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What's Driving the change in Indian Bus Market A
Source : AL
AAAAAAAAA.Emission Norms Worldwide
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What's Driving the change in Indian Bus Market A
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