
Percentage of volume sales reported by manufacturers ranges between 15-30% as compared to 2013. However, indication of the gradients for developing business continues to remain steeper owing to subdued market conditions, unit sales in 2013 for the dominating 16 tons, 4X2 was 13,600 units as compared to 25,000 units in 2011 and 17,700 units in 2012. The mass category registered sales of 7,800 units till September 2014 with likely maximum projections of demand closing between 10,000-11,000 units. The higher 25 and 31 tons multi axle capacities between 6X4 and 8X4 registered a growth of 27,000 units in 2013 down from 34,500 units in 2012 and from peak 40,000 units in 2011. Sales in the higher category segment have been reported 21,000 units till September 2014. In total, this figure is definitely less as compared to 2011-12 when gross demand was 62,000 units up from 48,000 units in 2010-11.

The 'Captain' series of the tipper trucks comes in 25 tons 6x4 with model configuration of 2523 and 3123, 31 tons, 8x4 wheel configuration. The tippers are available with options of single and hub reduction axles. The trucks are powered by 230-240 hp Leyland Engines. "We have carried out valued engineering improvisations in the two new products by equipping them with 9 speed gear box, air conditioned cabins for drivers comfort, yet making the pricing competitive enabling them to compete with the premium segment offerings," mentions Mr. Surendranath.
The captain is being promoted by Ashok Leyland for the movement of bulk materials for long haulage required in construction. It is also being promoted for hauling materials at deep (200-250 ft) mining sites from the surface level. The trucks are available with rock and box body configurations between 14-16-22.
Ashok Leyland offers 9-31 tons tipper trucks for the mass segment between 160-200 hp. It also offers 49 tons tipper trucks for mining segment. Its 'U' range of 16-31 tons tippers with 4x2 and 8x4 axle configurations 6.5 cum-22 cum body configuration is for transportation of road construction materials, iron ore, coal, sand and blue metal, ore fertilizer and coke. U 2523 tipper trucks can also be made available with 14 cum rock body and 16 cum box body for marble stone quarry and over burden hauling.
The company has 170 dealers with 470 branches across the country for sales and product support. According to Mr. Surendranath, "The dealers are well placed across the country, however we are planning to appoint more dealers in unexplored territories. We will make our dealership network strong in Madhya Pradesh, Eastern and North Eastern states of India. Expansion of dealership network in Eastern India is expected to raise our market presence from existing 30% covering states of West Bengal, Orissa, Jharkhand, Bihar, Assam, and Meghalaya." The southern based truck conglomerate has recently appointed a dealer in Meghalaya. For ensuring on site support to our tipper trucks customers, we have 20 and 40 feet on site container workshops supported by a service engineer." Roughly 65% of Ashok Leyland's tipper trucks are from construction segment whereas remaining are from mining segment.


Tata Motors has also begun export of its 'Prima' trucks. The company has formally launched the brand in Qatar, UAE, Sri Lanka, and East Africa. It will shortly launch the brand in Nepal where the company has recently showcased, the Prima B-cab, a first for the medium truck segment.
The company does not foresee sizeable competition into the tipper trucks segments from the prominent foreign companies with tried and tested technologies. Explaining the competitive positioning of the company, Mr. Sahay says, "Tata Motors has been in the Indian Commercial Vehicle (CV) space for 60 years. Over this period, we have developed a very deep understanding of the Indian market, with the widest portfolio of CVs to cater to the requirements of every kind of customer, a pan-India sales and service network, which is further growing in terms of enhanced experience levels and touch points."

Tata Motors will be banking on its network of 120+ dealer principals for promoting sales. It will be looking for product support and services from its large network of sales points. Mr. Sahay mentions, "Tata Motors has the widest service network with a touch point every 50kms on highways, with an unparalleled parts network constituting 38000+ sales points."
He says, "Through our dealers, we provide various offerings including 24x7 onsite support service through mobile service vans, along with ensuring quick services through our widest service network of dealers and Tata Authorised Service Stations (TASS) across India."
The truck manufacturing major is also looking to leverage its brand through its range of onsite support, crucial to have enhanced availability of tipper trucks. Mentioning about the range of services offered backed by requisite infrastructure, Mr. Sahay mentions, "We provide various offerings including 24x7 onsite Support Service through mobile service vans, along with extensive driver & mechanic training. We also ensure quick services from our widest service network of dealers and Tata Authorised Service Stations across India."
He elaborates, "Some of the salient features of our services include, positioning team of Tata Motors trained supervisors and technicians posted at project sites, stocking of all necessary fast moving and critical spare parts / consumables kept at the site. Preventive checks and routine maintenance by technicians along with corrective measures on a daily basis, preservation of service and repair records of all vehicles and necessary actions for optimization and training support to all drivers on safety and economical driving."
Mr. Sahay explains, "The benefits of our onsite support are numerous. This includes, optimal performance and increased life of tippers. Routine maintenance & repairs. 100% adherence to preventive/ routine & scheduled maintenance services of your Tippers at site. Most importantly, availability of Tata genuine parts onsite thereby no frequent failures, increased vehicle uptime, saving on time and fuel thereby more productivity & revenues."
Tata Motors have partnered with Driver Training Institutes which are operational at Muktsar in Punjab, Dimapur in Nagaland, Silchar in Assam and Ajmer in Rajasthan. Mr. Sahay informs, "The Ministry of Road Transport & Highways, Government of India has sanctioned Driver Training Institutes in the following States to Tata Motors under the XI Five Year Plan – Tripura, Maharashtra, Haryana, Himachal Pradesh and Uttar Pradesh. Over 9500 drivers are trained by Tata Motors in a year at the various Service Training Centres located across the various plants."
Tata motors perceives dealership and vendor support is quite critical to promote sales and product positioning in the highly volatile market, where it will continue to support the verticals. Mr. Sahay mentions, "With regard to our strategy to counter volatility in terms of sale, we at Tata Motors have a strong plan for our CV business, based on our HorizoNext philosophy and its four pillars of strong product focus, world-class manufacturing, great customer sales experience and consistent customer service. We will continue to work according to this plan and remain passionately committed to providing best vehicles and experiences to our customers globally, while ensuring we continue to work for the betterment of all our stakeholders.
Expansion of business is looked by Mahindra Trucks & Buses Limited (MTBL) through carrying out improvisations in its tipper trucks. "There is a proposed investment of Rs.200-300 crores towards strengthening the existing product lines and over Rs.300 crores for development of the new range of ICVs and MCVs. There is a huge opportunity that we are eager to exploit in this segment," says Mr. Nalin Mehta, MD & CEO, MTBL.

He continues, "We are continuously working on bringing down the cost of operation for all our trucks including tippers through slew of initiatives. This has included, enhancement of standard product warranty (from 3000 hrs to 4000 hrs). We also have an option of extended warranty (additional 2000 hrs). Increased oil change interval to 750 hrs – will soon become 1000 hrs. Several customers are recognizing the far superior earning that our tippers are delivering due to their heavy duty performance leading to quick turnaround. Since introduction, we have made a conscious effort to understand their business needs and provided them with various tips to enhance the vehicular performance. We have also been helping customers towards optimization of their earnings by improving load optimization, tips on better management of their fleet among other initiatives."
Having sold above 1865 nos of tipper trucks which also includes 31 tons units sold for coal haulage mostly to the construction aggregates and minerals sector, product support and services is a key area for MTBL to avoid brand substitution. "Based on the size of our tippers population, we offer on-site service support through dedicated technicians for the site. We also have 62 MTBL dealerships, active today. Moreover, we have leveraged group synergies and already added 364 authorized service points, drawn from the Mahindra Automotive and farm sector network," says Mr. Mehta.

MTBL will enhance sales based on its active 62 dealers and also 28 exclusive Mahindra & Mahindra light commercial vehicle dealers. "To leverage our presence, we are continuing with dealer expansion plan. However considering the state of economy, we have reduced the pace. Building deeper geographical reach through branches is more important for our business today," says Mr. Mehta

Mr. Ramasubramanian mentions, "We have an elaborate product portfolio to meet varied application requirements with trucks ranging from 16 to 49 tonnes available in body sizes of 8.5 cu.mtrs to 24 cu.mtrs. The tippers are fitted with Euro III engines that deliver 180/235 / 280 HP and a maximum torque of 1100 Nm. Heavy duty double acting shock absorbers and integral power steering with double UJ ensure a smooth and stable ride."
Asia Motor Works has its integrated manufacturing facility at Bhuj in Gujarat with a planned capacity of 50,000 commercial vehicles per annum.
Addressing New Demand Shift
Expanding footprint in the higher capacity tipper segment, VE Commercial Vehicles (VECV) will shortly launch 8x4, 31 tons, new 'Pro' series of tipper trucks powered by five & eight litre engines in 180-280 hp range. The trucks will be marketed for movement of bulk cargo including coal and construction aggregates over long distances. VECV unfolded its "Pro" series of trucks and buses in 2013 and the products were introduced in a phased manner starting from February 2014. The Eicher 'Pro Series' of tipper trucks comprises Eicher Pro 6000 with 16-31 tons gross vehicle weight and Eicher Pro 8000, 25-49 tons GVW tippers, trucks and tractors.

According to Aggarwal, "The new Pro series of tippers is a game changer for the tipper industry in India. It will deliver higher profitability throughout its lifecycle with best in class fuel efficiency, good driver comfort and better drivability, higher uptime, superior reliability, optimized maintenance cost, and higher resale value. The attainment of higher vehicle uptime will also be ensured through genuine and timely products and services support from VE Commercial Vehicles." The appropriate after sales support has contributed towards building up of our market share from 7.8 percent in 2008 to 13.8% in 2013 and further in 2014.

He continued, "Enhanced vehicle performance is also ensured through company's annual maintenance programme and the drivers training. Other support services to be offered by VECV for enhanced truck mobility are customized annual maintenance contract services and availability of skilled drivers. VECV claims to have made colossal investments towards developments of drivers. The drivers available with the dealers are trained to deliver best in class fuel efficiency."
Consolidating business position in the multi axle heavier tipper truck segment, Man Trucks India has also extended its product portfolio to compete in this segment. Leading the pack is the new CLA 25.220, 6X4 on road construction tipper. According to the company officials, "With the introduction of this model, the range of vehicles offered by MAN Trucks India has become truly formidable. This model is not only fitted with new aggregates but also allows MAN to address a mass market, not explored so far." They mention, "The vehicle is accompanied by attractive fuel consumption figures, low wear and tear, and sustained value. With top class features like – higher engine power, best in class oil change interval, sealed front axle and exhaust valve brake; all the segment of MAN vehicles including the newer ones always stand superlative among its competition."
Officials inform, "MAN offers CLA series of trucks in 16 to 31 ton range fitted with 220 and 280 hp engines. These trucks are equipped with tipper bodies with capacities ranging from 8 CuM to 18 CuM. The established and proven 280 HP mining tippers are offering lowest possible life cycle cost for 'over burden' removal and even for material mining against high cost-high horse power imported; typically known as 'deep mining tippers'. MAN CLA 31.280 tipper with 18 CuM RAEX body is surely a tough competition to these imported, deep mining tippers particularly in green field projects."
MAN's haulage range application includes 25 to 49 ton category trucks fitted with 220 and 280 hp engines." Trucks manufactured by MAN in India have localization level of 95 percent. The CLA series of trucks made by the company is for Indian as well as for exports to Asia, Africa and CIS countries.
The trucks are manufactured by the company at its integrated plant at Pithampur near Indore with an in- house facility for axles and engine assembly. The plant has an installed capacity of 12,000 trucks per year with further room to ramp up capacity to 24,000 trucks per year. Presently, the plant is producing 7500 vehicles & 8000 engines per annum. The company has its corporate office housing an R&D and test centre in Pune.

Officials mention, "To reinforce the parts supply process, as part of product support, MAN Trucks India has set up four regional warehouses. This ensures timely supply of spare parts to dealerships and customers. MAN Trucks India also offers a complete service package through numerous offerings like – annual maintenance contracts'), 'extended warranty program', 'onsite support of parts & service' and 'customized service support' based on customer requirement." The German truck manufacturer has sold 12,000 trucks in domestic market since its inception in 2006 out of which approx. 80% are tippers, both in construction and mining segment.
Thronging of space in the multi-axle segment 8x4 and higher capacities is a newer trend. This is primarily attributed by tipper truck manufacturers to the desire of road construction contractors and coal mine operators to graduate to a higher category from the 4x2 segment, for getting the commercial benefits.

After two tough and challenging years for the heavy duty market, we have seen improvement in business environment since May this year with new government pushing for reforms and working on execution of stalled infrastructure projects, faster clearance of coal projects by removing the hurdles on clearances etc. We hope HD truck demand is on the recovery path and look forward for a strong growth in 2015.

Mr. Rao claims, "Volvo Truck's share in the premium segment has remained above 65% (High end mining). We have been able to retain the market share, through our well benchmarked customer after market support, ensuring vehicle availability close to the tune of 95-98%. Support is ensured by us at sites through timely availability of parts and components in container workshops and trained technicians for maintenance and operating support." The company is looking forward to expand higher capacity tipper trucks based on the emerging applications of the market and will keep importing critical components like drivelines and engines from Sweden.
According to the industry estimates, the higher capacity tipper trucks market has registered a growth of 20% this year (calendar year) and Volvo trucks will retain the market share of 65% by the end of the year. The market is expected to close between 1250-1350 units till December 2014.
Improved Offtake for Vendors


Developments in coal mining and exploration of the manufacturers to expand into other mining areas apart from the earlier mainstay, iron ore business, have yielded dividends for the tipper truck manufacturers. However, the momentum will require to be sustained through proactive support from the government ensuring developments of newer mining areas, liquidation of stocks and development of newer construction projects.