7/23/2019 Mahindra AFS Trucks and Buses

1/2

Mahindra War Room 2015 Trucks & Buses Business Caselet

MAHINDRA AUTOMOTIVE & FARM SECTORS:

TRUCKS & BUSES BUSINESS CASELET

Mahindra Automotive & Farm Equipment Sectors (AFS) comprise businesses ranging

from Automotive (including Cars, UVs, Small Commercial Vehicles, Trucks and Buses),

Agri-business (including Dairy, Seeds and Applitrac equipments), Construction

Equipment, Powertrains (Engines, Transmissions & Gensets) to Tractors. This caselet

pertains to the Trucks and Buses Business of Mahindra AFS.

BUSINESS BACKGROUND

Mahindra Trucks and Buses Limited is a company engaged in the manufacture of a

wide range of Light and Heavy Commercial Vehicles that are rugged, reliable,

environment friendly and fuel efficient. The company was originally a joint venture with

Navistar Inc of USA, the worlds largest mid-range engine manufacturer. The JV was

subsequently dissolved with the acquisition of controlling stake by Mahindra. Designed

ground-up in India with technological assistance from Navistar of USA, Mahindra trucks

are designed to raise the bar in the industry, and be the choice of the next generation of

Indian transporters. Mahindras trucks are designed for various business needs and

applications such as transit mixers, bunkers, car carriers and refrigerated container

trucks. The new range of medium and heavy commercial vehicles are being

manufactured in the new state-of-the-art plant at Chakan near Pune spread across 700

acres, staffed by 800 highly trained technicians, engineers and specialists. The range of

Light Commercial Vehicles and Buses are manufactured at the older factor in

Zaheerabad. Mahindra Trucks and Buses are inspired by the philiosophy of Made in

India, Made for India.

LIVE CHALLENGE: TRUCKS BUSINESS STRATEGY

Mahindra Trucks have had an exciting, but a challenging ride over the last few years.

Mahindra Trucks bring fresh thinking and innovation to the tired space of Trucks &

Buses in India. As a product, Mahindra trucks were ahead of what the competition

offered, with features such as sleeping bed in the cabin. Mahindra also pioneered

movements such as the Mahindra Saarthi Abhiyaan, Mahindra Transport Excellence

Awards and a 24X7 multi-lingual expert assistance service. Yet, the recessionary

conditions and rising diesel prices over the last few years have caused transporters to

resist taking risks and changing mind-sets, even if the changes were promising.

Broadvision Perspectives Client Confidential Page of1 2

7/23/2019 Mahindra AFS Trucks and Buses

2/2

Mahindra War Room 2015 Trucks & Buses Business Caselet

Mahindras competition too has responded aggressively with price cuts and incentives,

preventing rapid penetration of Mahindra in Trucks and Buses. Mahindras aspiration in

this business is to be a significant player, holding a position among the Top 3 players in

the market.

Mahindra Trucks and Buses have done everything in the last few years to get the

value proposition right - the product is good, the pricing is fair, the network,

support etc. are good too, but the traction from the market is not upto

expectations. What should Mahindra be doing next, in Trucks and Buses?

Mahindra has the best-in-class products and the best price, but what can inspire

market share growth? Are there any blind spots that needs to be worked on?

With the power resting in the hands of the Buyer and also with the competitor,what should be the tactics and direction, a challenger brand like Mahindra should

adopt, to move forward and grab a meaningful 10% share of the HCV market.

Evaluate this situation strategically and holistically, through comprehensive field

research and insighting, and based on the same, evolve the way forward strategy

for Mahindra Trucks and Buses.

Broadvision Perspectives Client Confidential Page of2 2