News and Events

Indian truck makers are gearing up for a major assault to protect market share and take on the challenge posed by the impending entry of Bharat Benz. Leading truck makers are investing close to a billion dollars in 100 new products including variants in the next 12 to 18 months. Also on anvil is a spurt of commercials, with Ashok Leyland hiring Mahendra Singh Dhoni as brand ambassador and TATA Motors Prima co-sponsoring a wrestling series Ring ka King, in a general entertainment channel. The spurt in investment by truck makers is at a time when the economy is showing signs of a slowdown. Typically when there is a slowdown, it is the CV industry that feels the impact before others, but the derring-do by Indian truck makers is primarily triggered by the much heralded entry of Daimler's Bharat Benz range of trucks, say experts. However, industry players attribute it to increasing acceptability among the truck users towards more modern trucks which offers better turnaround time and not Bharat Benz's entry alone. Reports say that TATA Motors will invest INR 1,500 to INR 2,000 crore, Ashok Leyland INR 800 crore, VE Commercial Vehicle INR 800 to INR 1,000 crore, AMW Trucks INR 300 to INR 500 crore, Mahindra Navistar INR 100 to INR 250 crore and all the investments will go into new modern trucks and R&D in the next 12 to 18 months. Speaking on the sidelines of HR Conclave last week, Mr Ravi Pisharody, president, commercial vehicle unit, TATA Motors said that "We would be investing about INR 1,500 to INR 2,000 crore this fiscal in our entire range right from Prima to sub one tonner." Tata Motors, India's largest truckmaker in terms of market share, would be introducing new products under the Prima range and bring in Prima equivalent 'Ultra' range in the light and intermediate truck category (7-9 tonne) while Ashok Leyland (ALL), India's second largest truck maker by market share will bring in its international Avia range of trucks in the same segment. The U Truck range from ALL is also likely to be powered by new series of Neptune engines. Mahindra Navistar will be launching specialized applications for coal, cement & food processing industry and AMW Trucks, a minnow in the market, has new premium range of trucks with new cabs on the anvil which was showcased at the Auto Expo. VE Commercial Vehicle too plans to revamp its entire range. Mr Vinod Agrawal CEO of VE Commercial Vehicles Limited said that "We take competition very seriously, so they (Bharat Benz) would be just like any other competitor. But it is not the competition alone which drives our plan. With the improvement in infrastructure and roads, there is a need for new range of trucks and we would be launching our next generation trucks which will see new drivelines, new engines and new cabs.” And it is not products alone, expansion and penetration of touch points is also keeping pace. For instance, ALL, which is considered as a south-centric player has expanded reach in northern and eastern part of the country over the last year or so.