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MAHINDRA AUTOMOTIVE & FARM SECTORS:

TRUCKS & BUSES BUSINESS CASELET


Mahindra Automotive & Farm Equipment Sectors (AFS) comprise businesses ranging
from Automotive (including Cars, UVs, Trucks and Buses), Agri-business (including
Seeds and Applitrac equipments), Construction Equipment, Powerol (Engines &
Gensets) to Tractors. This caselet pertains to the Trucks and Buses Business of
Mahindra AFS.
BUSINESS BACKGROUND
In 2005, Mahindra & Mahindra entered into a joint venture with Navistar Inc USA, a
market leader in trucks and buses in the USA, and the worlds largest mid-range engine
manufacturer. Mahindra Navistar Automotive set out to build a range of indigenously
developed commercial vehicles for Indian terrain. Though Mahindra and Navistar exited
the JV in 2011, Mahindra is still creating and developing Light Commercial Vehicles
(LCV) and Heavy Commercial Vehicles (HCV) that continue to set the standards under
a new company called MTBL (Mahindra Trucks and Buses Ltd).

MTBL manufactures a wide range of LCVs and HCVs that are rugged, reliable,
environmentally friendly and fuel-efcient. Designed ground-up in India with
technological assistance from Navistar, Mahindra trucks are created to fulll
requirements that are specic to the Indian transporters needs, and manufactured at
the new state-of-the-art plant at Chakan, near Pune, staffed by 800 highly trained
technicians, engineers, and specialists, and stretching over 700 acres of landmass.
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, but recessionary conditions and rising diesel prices over the last few
years have caused transporters to resist risk taking and mind-set changes, even if the
changes were promising. 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 signicant player, holding a
position among the Top 3 players in the market.
Mahindra War Room 2014 AFS - Trucks & Buses Business Caselet
Broadvision Perspectives Client Condential Page 1 of 2
In India, 85% of the Trucks sold are deployed under 8 major usage segments, while
Buses under 6 major segments. Knowing this, MTBL aspires to bring the right products
and services at the right time to the right segment, and is moving to a segment-based
product conceptualization process. This new strategy will enable Mahindra offerings to
capture the market one segment at a time, using a anking strategy.
Considering these factors, and the current position of MTBL, please evolve a segment-
based strategy for Mahindra Trucks and Buses for ANY ONE of the following segments:
Passenger Transport (Buses):
1. Stage Bus
2. Maxi Cab (School Buses)
Goods Transport (Trucks):
1. Cement
2. Container
3. Construction
For YOUR CHOSEN SEGMENT, evolve MTBLs Strategy based on a detailed
understanding of:
a. Value Chain Input, Processing and Output of the Segment
b. Customer Prole, Business Drivers, Future Potential & Trends
c. Business economics & how it can be improved by CV OEM by providing
different products/variants/service
d. Enablers like retail nance, service network and secondary market support
e. Transportation needs, type & number of commercial vehicles used & likely to
be required in future
f. Identication of niche sub-segments and strategy to penetrate the same
Treat the chosen segment as a unique market, identify the needs of the segment,
research and analyze the gaps in existing products by both national level and regional
competitors, and conceptualize a product focused on that segment. Test your product
across segment experts representing the national market, customer panel of expert
customers, decision makers and market leaders. Your strategy should also cover major
sales enablers to attain the desired results.
Mahindra War Room 2014 AFS - Trucks & Buses Business Caselet
Broadvision Perspectives Client Condential Page 2 of 2