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the product at the calculated price. This appears in two forms, full cost pricingwhich takes into consideration both varia...
This strategy is employed only for a limited duration to recover most of theinvestment made to build the product. To gain ...
The company plans to double its capacity in truck segment from the currentlevel of 150,000 units. The company which has so...
freight rates firm, the increase in ownership cost along with rising interest ratesand fuel prices is likely to exert some...
Commercial vehicle: Company-wise production (Annual)Player                               2007-08    2008-09    2009-10    ...
COMPANY ANALYSIS.                (Rs in Crs)                    Year                    Mar 12     Mar 11     Mar 10     M...
MARKET VALUE OF SHARESKey Financial data of the company:S.No   Data                      Entries1      Face value         ...
Key Financial ratios comparison:Return on Equity:Earnings per share:Price to earnings:The Debt value has risen comparing t...
BETA VALUE OF THE COMPANY:ri = rf + β ( rm – rf )rf = 0.081β = ??rm – rf = 0.065ri=16.355%ri = 0.081 + β(0.065)   =1.27   ...
Ecomet Strong offers higher payloads and increased profits while the EcometSmart offers faster turnaround time. In fact, t...
model of an engine was displayed to demonstrate the working of the inline fuelinjection pump. This created an exciting pla...
FindingsTataCheap to buyDecent FErelatively underpowered, hence as mentioned before, run in mostly level roadslighter, sho...
It‟s all about how aggressive the company is in its sales strategy. Commercialvehicle is a segment where the loyalties are...
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Final report ashley (1)


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  1. 1. YEAR LONG PROJECTINDUSTRY- AUTOMOBILES-LCV’S/ HCV’SCOMPANY- ASHOK LEYLAND GROUP NO-15 Naveen Kumar P(29030) Vaibhav Kumar (29055) AkankshyaAgarwal (29062) A Subash (29108)
  2. 2. PRODUCT PRICING STRATEGIES IN VOGUE IN THE INDUSTRY AND IN ASHOK LEYLAND LIMITED (ALL)The Internet is changing the automotive industry as the traditional manufacturerand dealer structure faces increased threats from third party e-tailers. Dynamicpricing together with the Direct-to-Customer business model can be used bymanufacturers to respond to these challenges. Indeed, by coordinatingproduction and inventory decisions with dynamic pricing, the automotiveindustry can increase profits and improve supply chain performance.The automotive industry operates with high fixed costs, long productdevelopment cycles and chronic overcapacity. These factors, combined withuncertain raw materials prices, create constant pressure on profitability and cashflow. Contrasting with these ponderous constraints is the fickle behaviour ofconsumers. Consumer spending is unpredictable and consumers have moreoptions and greater transparency than ever. These conflicting demands createthe need for predictive capabilities and flexibility.Automotive sector clients have the best pricing strategies and they are well-defined, communicated throughout the organization and actionable. Developingthe right pricing strategy requires combining strategic objectives with granulardata analysis. The steps followed for establishing a pricing strategy include- 1. Educate stakeholders about potential pricing strategies that fit their current operating model and strategic objectives 2. Perform detailed analysis to determine value proposition vis a vis competition at a customer segment level 3. Compare value proposition analysis to potential pricing strategies to determine ideal strategy by segment 4. Ensure a rational price structure across channels and substitutable or complementary products 5. Create change management plan to communicate pricing strategy throughout the organizationPricing is one of the four elements of the marketing mix, along with product,place and promotion. Pricing strategy is important for companies who wish toachieve success by finding the price point where they can maximize sales andprofits. Companies may use a variety of pricing strategies, depending on theirown unique marketing goals and objectives.Cost-Plus PricingCost-plus pricing is the simplest pricing method. The firm calculates the cost ofproducing the product and adds on a percentage (profit) to that price to give theselling price. This method although simple has two flaws; it takes no account ofdemand and there is no way of determining if potential customers will purchase
  3. 3. the product at the calculated price. This appears in two forms, full cost pricingwhich takes into consideration both variable and fixed costs and adds apercentage as mark-up. The other is direct cost pricing which is variable costsplus a percentage as mark-up. The latter is only used in periods of highcompetition as this method usually leads to a loss in the long run.Market-oriented pricingSetting a price based upon analysis and research compiled from the targetmarket. This means that marketers will set prices depending on the results fromthe research. For instance if the competitors are pricing their products at a lowerprice, then its up to them to either price their goods at an above price or below,depending on what the company wants to achieve .Limit pricingA limit price is the price set by a monopolist to discourage economic entry into amarket, and is illegal in many countries. The limit price is the price that theentrant would face upon entering as long as the incumbent firm did not decreaseoutput. The limit price is often lower than the average cost of production or justlow enough to make entering not profitable. The quantity produced by theincumbent firm to act as a deterrent to entry is usually larger than would beoptimal for a monopolist, but might still produce higher economic profits thanwould be earned under perfect competition.The problem with limit pricing as a strategy is that once the entrant has enteredthe market, the quantity used as a threat to deter entry is no longer theincumbent firms best response. This means that for limit pricing to be aneffective deterrent to entry, the threat must in some way be made credible. Away to achieve this is for the incumbent firm to constrain itself to produce acertain quantity whether entry occurs or not. An example of this would be if thefirm signed a union contract to employ a certain (high) level of labor for a longperiod of time.SkimmingIn most skimming, goods are sold at higher prices so that fewer sales areneeded to break even. Selling a product at a high price, sacrificing high sales togain a high profit is therefore "skimming" the market. Skimming is usuallyemployed to reimburse the cost of investment of the original research into theproduct: commonly used in electronic markets when a new range, suchas DVD players, are firstly dispatched into the market at a high price. Thisstrategy is often used to target "early adopters" of a product or service. Earlyadopters generally have a relatively lower price-sensitivity - this can beattributed to: their need for the product outweighing their need to economise; agreater understanding of the products value; or simply having a higherdisposable income.
  4. 4. This strategy is employed only for a limited duration to recover most of theinvestment made to build the product. To gain further market share, a sellermust use other pricing tactics such as economy or penetration. This method canhave some setbacks as it could leave the product at a high price against thecompetitionPenetration PricingA penetration pricing strategy is designed to capture market share by enteringthe market with a low price relative to the competition to attract buyers. Theidea is that the business will be able to raise awareness and get people to try theproduct. Even though penetration pricing may initially create a loss for thecompany, the hope is that it will help to generate word-of-mouth and createawareness amid a crowded market category.Perfect PriceThere is no standard or best pricing formula in any industry. For many yearspeople have tried to develop a formula for determining the right price that thebusiness should change to generate premium profit yet not discouragecustomers from buying. There is no right price because of which, choosing aprice strategy is very important.BRANDING AND IMPORTANCE OF BRANDING IN THE INDUSTRY AND IN ASHOK LEYLAND LIMITED (ALL)Dual brand strategyThe joint venture between commercial vehicle manufacturer Eicher Motors (EML)and the worlds second largest truck maker AB Volvo (Volvo) has decided tohave a dual brand strategy for their entry into the country. Similarly, othercommercial vehicle manufacturers involved in dual brand strategy including ALL.Ashok Leyland to go for brand revamp through acquisitionCommercial vehicle major and Hinduja Group Company Ashok Leyland has saidthat it would go for a brand revamp as part of a three-point strategy that alsoincludes focusing on quality and people. It has set a target for itself to be one ofthe top 10 players in truck segment and top five in the bus segment in the next5-10 years.The company, which is set to cross revenue of Rs 11,000 crore for the first timein this fiscal, has also lined up investments to the tune of Rs 800 crore and isscouting for acquisition opportunities to expand its global foot print.Vinod K Dasari, who took over as Ashok Leylands managing director on April 1,2011 said: “My vision to make the company one of the top 10 players in trucksand top five in bus segment over the next 5-10 years in terms of volume.”
  5. 5. The company plans to double its capacity in truck segment from the currentlevel of 150,000 units. The company which has sold 94,100 units has set atarget to sell 110,000-120,000 units for 2011-12. R&D would be the other focusarea, said Dasari. Of the Rs 800 crore CAPEX, Rs 200 crore would go on R&D. Henoted that two years back, its investment in R&D was Rs 90 crore.The other proposed investments include Rs 200 crore for research anddevelopment, Rs 50 crore to increase capacity at Alwar plant and Rs 200-300crore in Pantnagar plant for back-end, for adding another frame line and forothers. The company has set a target of Rs 11,000-12,000 crore of revenue in2011-12 as compared to Rs 7,315.16 crore in 2009-10.Brand CommunicationIn the first-ever association with a celebrity endorser in over six decades, ALLhas signed Mahendra Singh Dhoni as brand ambassador. He will be the new faceof Ashok Leyland and lend traction to a slew of initiatives and new productinnovations that they have kick-started to become one of the strongest playersin the commercial vehicle business. DETAILS OF PRODUCTION, CAPACITY AVAILABILITY, UTILIZATION LEVELS IN THE INDUSTRY AND IN ASHOK LEYLAND LIMITED (ALL)The strong recovery witnessed in the domestic commercial vehicle (CV) sector inthe second half of the financial year 2009-10 (FY2010) has continued in thecurrent fiscal with the April-November 2010 period reporting a growth of 35.2%over the corresponding previous year. Steady growth in economic activity, pick-up in demand from across end-user segments, adequate availability of financingat competitive rates, and improvement in the overall sentiment are among thekey factors that have collectively aided the growth across the segments of theCV industry. Part of the growth has also been facilitated by pre-buying, aphenomenon witnessed during September 2010, ahead of changes in emissionnorms taking effect from October 1, 2010.Overall, the growth in the medium and heavy commercial vehicle (M&HCV)segment has been stronger at 47.4% as compared with the light commercialvehicle (LCV) segment, which reported a 25.8% growth during the same period.Within the M&HCV segment, the tractor-trailer segment was the first to witnessrecovery with increasing demand for transportation of industrial commoditiesand pick-up in foreign trade, while the tipper segment, which derives demandfrom the construction and infrastructure projects, witnessed a more gradualrecovery. Over the past three to four quarters, original equipment manufacturers(OEMs) have affected successive price increases averaging over 10% to recoverthe increase in input material prices and the cost of making the transition fromBS II to BS III emission norms. While economic activity remains buoyant and
  6. 6. freight rates firm, the increase in ownership cost along with rising interest ratesand fuel prices is likely to exert some pressure on the viability and cash flows offleet operators. With growth in the CV segment during Q2 FY2011 having beendriven partly by pre-buying ahead of BS III, ICRA expects growth in the secondhalf (H2) of FY2011 to be relatively subdued. In terms of competition, while inthe past, international OEMs were unable to make a major dent in the domesticCV market (characterised by a duopolistic structure), they have now ventured inthrough joint ventures (JVs) with some of the domestic players, thereby raisingthe prospects of increasing competitive intensity. Examples of such JVs includethe ones between Mahindra and Mahindra and Navistar; Eicher Motors andVolvo; Force Motors and MAN; and Ashok Leyland and Nissan.Some of the JVs are likely to benefit from the in-depth understanding of thedomestic market that the local players have, their established vendor base, andtheir extensive marketing and distribution reach. Nevertheless, the incumbents,in defending their market position, would continue to draw strength from theirestablished brand franchise, extensive service and distribution network, andcompetitive cost structures.Capacity utilisation at ALLHinduja Group flagship Ashok Leyland is expecting full capacity utilisation of itsfacility at Hosur for Dost, the light commercial vehicle (LCV) under the jointventure with Nissan, by next fiscal year. The LCV has reached sales of around2,800 units a month. Around 20,479 units of Dost had been marketed acrosseight states in the country so far. The sales are growing according to thedemand and the production capacity of 55,000 units a year, which the companyset up at Hosur facility, would be completely utilised by the next fiscal year.While the company, along with Nissan, is planning to set up a greenfield facilityto manufacture Dost, at Pillaipakkam in Tamil Nadu, it expects capacity constrainto continue till the new facility comes up. It has received around 280 acres atPillaipakkam from the government, and it would take 2-2.5 years to bring up thegreenfield facility. The company expects to cover 11 states and set up around 89outlets by the end of March 2013. It would expand to Madhya Pradesh, theNational Capital Region and Uttar Pradesh within the time, said Nitin Seth,executive director – LCV, Ashok Leyland. The all-India market share for Dost isaround 21 per cent. The company also expects its next product from the JV withNissan to be launched this month. To commemorate the first anniversary Dost,the company has rolled out its limited version edition. Using the State-of-the-artvehicle factory running to full capacity in Ras Al Khaimah, Ashok Leylandincreases stake in Optare plc to 75.1%. ALL has orders bagged for 290 doubledecker buses for Bangladesh, 723 vehicles for Tanzania, 100 Falcon buses toGhana. Also the 816 minibus proves an instant success in Russia and Ukraine.
  7. 7. Commercial vehicle: Company-wise production (Annual)Player 2007-08 2008-09 2009-10 2010-11 2011-12Tata Motors 3,37,360 2,53,303 3,36,711 4,42,521 5,30,481Mahindra & Mahindra Ltd. 64,235 60,708 95,460 1,17,468 1,50,077Ashok Leyland Ltd. 84,006 54,049 64,673 95,337 1,03,267Eicher Motors Ltd. 30,229 18,916 29,504 40,707 50,957Force Motors Ltd. 11,772 7,618 11,684 22,601 24,867Mahindra Navistar Automotives Ltd. - - - 10,170 14,423Swaraj Mazda Ltd. 11,215 8,145 10,289 12,891 13,978Piaggio Vehicles Pvt. Ltd. 5,113 9,206 11,095 9,140 10,703Asia Motor Works Ltd. 3,645 2,752 3,475 6,578 9,913Volvo India Pvt. Ltd. 1,058 1,912 1,483 1,644 1,220Hindustan Motors 24 54 277 327 193Daimler India Commercial Vehicles - - - 188 120Pvt Ltd.JCBL Ltd. - - 179 - 1Daimlerchrysler India Ltd. 123 297 174 - -Tatra Udyog Ltd. 43 10 - - -Grand Total 5,48,823 4,16,970 5,65,004 7,59,572 9,10,200Volumes from Pantnagar unit stands at ~7,000 units and U-Truck contributed~2,000 units in Q2 FY12. ALL sold ~3,400 engines during Q2 FY12, and there isincreasing shift towards in-house manufactured engines as compared tooutsourced engines. The company has also raised engine prices ~4% duringJuly 2011. Freight rates in Southern and Eastern region has moderated howeverrates have increased in Northern and Western region.Joint VenturesJV with Nissan: The JV has recently launched its first product „Dost‟ underNissan JV with volume of 210 units in October 2011. In order to avail VATincentives, the products inside Tamil Nadu will be sold directly by JV whereasoutside TN will be sold under ALL. The company is targeting target of 12,000units in H2 FY12 and ~50,000 units in FY13.JV with John Deere: The JV is expected to start production from November2011 with launch of Backhoe loader. The production will be gradually ramp upto ~9,000 units by FY13.JV with Continental: The JV has started supplying electronic components forALL‟s U-Truck platform, and ALL is expecting annual turnover of ~Rs 20 croreonce operation stabilize.
  8. 8. COMPANY ANALYSIS. (Rs in Crs) Year Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 SOURCES OF FUNDS : Share Capital 266.07 133.03 133.03 133.03 133.03 Reserves Total 3,942.11 3,829.93 3,535.72 3,340.87 2,015.95 Equity Share Warrants 0 0 0 0 0 Equity Application Money 0 0 0 0 0 Total Shareholders Funds 4,208.18 3,962.96 3,668.75 3,473.90 2,148.98 Secured Loans 960 1,113.33 711.57 304.41 190.24 Unsecured Loans 1,333.35 1,234.80 1,568.87 1,653.73 697.26 Total Debt 2,293.35 2,348.13 2,280.44 1,958.14 887.5 Other Liabilities 80.15 78.47 0 0 0 Total Liabilities 6,581.68 6,389.56 5,949.19 5,432.04 3,036.48 APPLICATION OF FUNDS : Gross Block 7,256.43 6,691.89 6,018.63 4,938.95 2,942.44 Less : Accumulated Depreciation 2,342.93 2,058.10 1,769.07 1,539.83 1,416.89 Less:Impairment of Assets 0 0 0 0 0 Net Block 4,913.50 4,633.79 4,249.56 3,399.12 1,525.55 Lease Adjustment 0 0 0 0 0 Capital Work in Progress 548.22 357.97 561.47 998.29 529.24 Investments 1,534.48 1,230.00 326.15 263.56 609.9 Current Assets, Loans & Advances Inventories 2,230.62 2,208.90 1,638.24 1,330.02 1,223.91 Sundry Debtors 1,230.25 1,164.50 1,022.06 957.97 375.84 Cash and Bank 32.56 179.53 518.92 88.08 451.37 Loans and Advances 810.45 430.84 972.91 789.54 824.14 Total Current Assets 4,303.88 3,983.77 4,152.13 3,165.61 2,875.26Less : Current Liabilities and Provisions Current Liabilities 4,423.33 3,342.93 2,592.06 1,872.71 1,926.71 Provisions 420.37 416.94 368.69 268.08 345.23 Total Current Liabilities 4,843.70 3,759.87 2,960.75 2,140.79 2,271.94 Net Current Assets -539.82 223.9 1,191.38 1,024.82 603.32Miscellaneous Expenses not written off 0 0 5.17 9.69 22.29 Deferred Tax Assets 25.9 23.43 26.08 74.99 15.96 Deferred Tax Liability 516.27 467.32 410.62 338.43 269.78 Net Deferred Tax -490.37 -443.89 -384.54 -263.44 -253.82 Other Assets 615.67 387.79 0 0 0 Total Assets 6,581.68 6,389.56 5,949.19 5,432.04 3,036.48 Contingent Liabilities 535.73 440.88 312.28 418.63 1,100.89
  9. 9. MARKET VALUE OF SHARESKey Financial data of the company:S.No Data Entries1 Face value 1.002 Market Price Today 25.703 52W H/L 20.05/32.904 Market Cap (Rs Cr) 6,837.945 BookValue 10.896 P/BV 2.367 P/E (TTM) 12.799 M.cap/Sales 0.45110 Dividend(%) 100%11 DPS 112 Dividend Yield 3.89%13 Avg daily volume 59.46 lakhs14 Beta 1.2715 EPS 2.0116 Industry P/E 12.9217 ROE 13.8518 Payout/Retention ratio 1.21
  10. 10. Key Financial ratios comparison:Return on Equity:Earnings per share:Price to earnings:The Debt value has risen comparing to the previous yearsThe P/E Ratio is wellabove the market average of 12.92. The EPS of the company has fallendrastically indicating a bad situation.Industry P/E = 12.92
  11. 11. BETA VALUE OF THE COMPANY:ri = rf + β ( rm – rf )rf = 0.081β = ??rm – rf = 0.065ri=16.355%ri = 0.081 + β(0.065) =1.27 β=1.27INVEST WITH ASHLEY??!The results as far as analyzed have not been satisfactory with regard to theindustry values thus when planning invest on the stocks of a Commercialvehicle segment, it is advisory not to invest or take huge risks in investing inthe stocks thought the stock is growing in its value day by day. MARKETING COMMUNICATIONSome brands make trial offers. Some others offer test drives. But at AshokLeyland we reach out directly to our customers through customer events. Theseare platforms for us to share the latest industry trends and developments; forcustomers to know more about our vehicles; for us to share importantinformation on vehicle maintenance and efficiency and most importantly, forthem to experience our vehicles. Organized and conducted at various strategiclocations across the country, these events provide an opportunity for customersto interact with our sales and marketing personnel.Ecomet Mega MelasThe ICV (Intermediate Commercial Vehicle) segment has been witnessing robustgrowth with monthly sales touching close to 5,000 vehicles. Ecomet is the widestand longest vehicle in its segment and offers the twin advantages of a longvehicle in a smaller vehicle category. With higher engine power and torque, the
  12. 12. Ecomet Strong offers higher payloads and increased profits while the EcometSmart offers faster turnaround time. In fact, the tyres of the Ecomet tipper arethe same as used in the MDV category: 8.25x20 PR. It offers the largestcapacity in its segment – 6 cubic metres (210 cft) and also boasts air brakeswith S Cam, power steering, under-body tipping mechanism and drop-side deckload-body.To gain a larger share of this growing market, we conceived the „Ecomet MegaMela‟– an ideal platform for customers to understand the Ecomet and to get afirsthand experience of the vehicle. With a customised float travelling acrossimportant hubs, at these Tipper Melas customers can play exciting games, winattractive prizes, learn more about the product, test drive the vehicles and alsoget on-the-spot offers. The activity is conducted by a trained team that managesthese standardised modules across the country. Santosh Kumar, a fleet ownerwho had attended one of the EcometMela says, “I have two Ecomet 1212s andbefore the end of this year, I plan to have two more of these thanks to the goodpromotional offers that the Company announced at the Mela.Over the last one year, we have conducted over 500 such Melas and these havebeen very well received by the transport industry.Tipper MelasTipper Melas help us understand changing customer needs and expectations inthe mining and construction industry. It also provides an opportunity forcustomers in remote locations and smaller satellite towns to interact with oursales teams and understand the various features of our tippers. Tipper Melasshowcase the entire range of our tippers with special offers and spot offers byleading financiers. Not only do they allow us to reach-out to customers, theyalso provide great visibility for brand Ashok Leyland. RajiveSaharia, ExecutiveDirector, Marketing, Ashok Leyland said, “The primary objective of these eventsis for existing and prospective customers to get to know our vehicles and forthem to firsthand appreciate their superior features and performance potential.The response and the outcome from such events has been extremelyencouraging and we will be pushing these activations into a higher gear goingforward.”Sabse Bada Sikandar Kaun?A highly competitive space, where minor differences can come at the cost of asale, the MAV activity, called SabseBadaSikandarKaun? is designed toestablish2516il, 3116il and 3118il as the most competitive models (in terms ofmileage, load-carrying capacity and serviceability) in their segment. Theobjective of the programme is to provide a touch-and feel experience tocustomers, so they can see and feel the difference first-hand. Launched inKolkata, it covered over 23locations, generating walk-ins and leads. The eventhighlighted the working of the inline fuel injection pump and its benefits. A live
  13. 13. model of an engine was displayed to demonstrate the working of the inline fuelinjection pump. This created an exciting platform to engage with the audienceand to help them understand the superiority of ALL‟s vehicles in very practicaland scientific way. These events, like all others, are managed by professionalactivation agencies that help spread awareness and create excitement about theevent. An emcee helps to engage the audience and demonstrates the superiorityof the product. Along with a demo of the inline FIP engine, interactive games likearm wrestling & jigsaw puzzles are used to establish key product benefits.Prospective customers are offered test drives and attractive finance offers arealso made available. The whole process creates a lot of goodwill and connectson-ground with the target group, and we are confident that sustained efforts willhave a positive spin-off for us in the long run.Interview ScheduleWe are carrying out an evaluation of Customer preference in commercialvehicles industry. Would you mind answering a few questions on yourexperience? (If they decline, discontinue the interview and thank them.)Your answers will be treated with confidentiality among project staff for thepurpose of evaluating the CV scenario, and in the production of the projectreport. All responses will remain anonymous. However, we would like to talk toyou again in about 12 months‟ time to see how things have changed. Would yoube agreeable to that? How would it be best to contact you later on? 1. Name ………………… 2. Address …………………. 3. Phone Number …………………. 4. Occupation ………………….Q1. What factors help you decide which vehicle to buy?Q2. Which brand do you prefer for Commercial vehicles?Q3.What advantage does Ashok leyland vehicles provide over its competitors?Q4.In which areas is Ashok Leyland lacking behind?Q5.How is the pricing of Ashok Leyland as compared to other market players?Q6.What do you think differentiates ALL from other brands?Q7.In which regions does ALL dominates?Q8. How strong is the Dealer network of Ashok leyland in and around your state?
  14. 14. FindingsTataCheap to buyDecent FErelatively underpowered, hence as mentioned before, run in mostly level roadslighter, shorter busesCheaper sparesHigher frequency of repairssomewhat quiet and refined, especially the newer designs with the low enginebay & cable operated(?) gearboxCummins & other third party engine versions are crapALExpensiveDoesn‟t come with the front grilleQuite powerful, so used in their ghat section routesspares are expensive, but last, hence general perception of solid buildNoisy & not as refinedlonger chassis.Nobody in the north seems to want themSemi forward options for trucks limited/not as goodJury is still out on the hino enginesAshok Leyland‟s strong points seem to be that its products are rugged , toughand reliable, The cost of ownership for Ashok Leyland products is much lesserthan others.Leylands simply rule in and around Karnataka, Kerala and Tamil Nadu. They area lot slower to accelerate but once speed is built no TATA can come close.Drivers and operators are all praises for Ashok Leyland. Almost every touroperators tell that tatas does not perform well after 2 years“AL- it‟s more reliable than a tata and can take the mountains much more easilywhen compared to tata but the FE is less and has a little less loading spaceTATA- FE is more and also loading area but the vehicle has reliability issuesEg. our 1 year old 1613tc(i think) with 55k on the clock had a blown head gasketwhen climbing a mountain in HP.Similar AL trucks carrying much more heavy load and much older dont have thisproblem and the above problem is not one single incident, the Himachal area isfull of such incidentsso in the end i will prefer AL and is also preferred by all the truck driver i havetalking to.”
  15. 15. It‟s all about how aggressive the company is in its sales strategy. Commercialvehicle is a segment where the loyalties are hard to break as earnings aredirectly linked ot it.North India is strong point of TATAs specially Jammu and Kashmir. AshokLeyland is slowly inching its way forward. Things would be interesting withMahindra joining the race and slowly GM getting into it. Tata CVs tend to havebetter ergonomics than the counterpart AL CVs.The major advantage of AL in my opinion is - they can develop a dedicatedengine for Indian market conditions, while TML has to use (or adapt) an enginefrom the Cummins global product portfolio.The Dost is definitely leagues ahead of the Ace or the Maximo. the interiors arealso pretty goodIt is unfair to compare the Dost with the Ace or the Maxximo asthe Dost is in a different segment altogether (1-2 Ton payload) and comesalmost a lakh dearer than the Ace / Maxximo. A more apt comparison would bethe Super Ace which surprisingly carries a 2 - 3 month waiting list.The biggest disadvantage with Dost is its Suspension set up, particularly in thefront. Indian drivers are used to overloading for which Leaf spring suspensionthe best is suited. The suspension set up of Dost, can be a big downside for thepotential buyers.