Interview by : Rajesh Rajgor
Q & A , Nalin Mehta, MD and CEO, Mahindra Truck and Bus Limited.
Q. Away from building and selling commercial vehicles, what have the seven MPOWER programmes and two Mentor summits delivered?
A. There was an impression that the young generation is not excited about venturing into the transport industry. The amount of hard work and dedication shown by young transporters at the MPOWER Programme, which we conduct with IIM (Ahmedabad), tells a different story. How excited they were was more than visible when we challenged them with the MPOWER War Room. They were told to implement what they learned during the course. Close to 26 case studies were short-listed in the first MPOWER War Room. It did not take long to realise that the young transporters are eager to venture into the transportation industry, They want to however break away from the trodden path; drive in more professionalism. The Mentor programme thus was the outcome of the learnings from the MPOWER youth programme. The veterans felt that their prodigies carried a false impression of having learnt it all. While they understood that one of the gains that will surface from the Mentors’ Summit will be networking but the extent of that networking surprised us. They (veteran and his prodigy) may not be competing in every area, and through these programmes they have learnt how to collaborate. This is something that we think has been delivered.
Q. How has such an endeavour reflected on the sale of your commercial vehicles?
A. We are new in a marketplace that contains brands that have been there for 30-40 years. The whole business is about relationship and trust. It is necessary to understand that every activity should not be linked and converted into sales. If you see these things and then judge whether we have gained or not; the gains are bigger than what you see on the ground. The gain is not just in terms of people, we have touched; we have created a relationship. Many transporters for instance won’t even give us a hearing. They are big in their own ways and have large fleets. The relationship that has been developed assures that we are heard. It also helps towards building mutual trust. This reduces the resistance, and increases their propensity to look at our brand. Our trucks and buses are a little ahead of its time. By creating a mindset for the future, we are creating a place for ourselves. So to measure the success of our programme in terms of sales is not right. When it comes to the market share, we have a very good amount of it. There are only two OEMs who have grown in market share. Last month (June 2015) we recorded a 3.3 per cent market share in HCV and about 9 per cent market share in LCV segment. We sold about 1100 LCVs and HCVs.
Q. How would the announcement to invest Rs. 500 crore relate to performance in terms of sales?
A. One part of the investment will be towards the expansion of our current product range and to enter into Intermediate Commercial Vehicles (ICVs). Second part will go into a new range of LCVs, and in the design of new cabin and a new chassis. Third part will go into the upgrading of the current product range. A BS IV vehicle has to be engineered; new variants of the existing products are to be brought out. There’s also a 49-tonne (tractor-trailer) that will come. We are also doing a 8×4 tipper. We are also doing a rig version for the tube well drilling industry. As you may have found out, we are continuously investing money. It will take us three years to bring the ICV. So I see MTBL (Mahindra Truck and Bus Ltd.) to be a significant player in the next three years.
Q. Are you still using Navistar engines for your trucks?
A. Yes, the engine is from Navistar. As you are aware, we had a joint venture with Navistar. We have a perpetual technology agreement and we pay royalty to them. Any further developments we do in the engine is our own, and they can take it from us at a price. The engine is very fuel efficient. Even more fuel efficient versions will keep coming as fuel efficiency is a never ending game. Right now our engines are as good or even better than the class leading products. Everyone claims that their engines are class leading. We are saying it on the basis of the share we are gaining. It is a proof that we are moving in the right direction. Our cabin is the best in the industry. Our chassis and aggregates are the strongest. Many of our trucks have gone past three lakh kilometres and the robustness is still the same. We have got feedback that even after using for four years the cabin is as intact as it was when new. The common-rail engine we have, we will offer in our 40 and 25-tonne vehicle. The wet liner technology does not mean the complete engine has to be pulled down to overhaul. We have individual heads for every cylinder. Every bit need not be taken apart. Apart from a modern engine, our cabins are also modern. They have been crash tested, and as of today there is no need to add more safety elements to it. The cabins are already 10 years ahead of their time. We have followed norms that are still not mandatory in our country. It can therefore travel to any developed country right now.
Q. Does the engine perform in terms of regulations?
A. The engine is already BS III emission compliant. It will take minor (after treatment) work to upgrade it to BS IV.
Q. How do you look at driver shortage. Are you planning any empowering programme for them?
A. The transport excellence awards that we present include an award for drivers. We gave one driver a truck and made him the owner. We gave one truck to the first women driver, Yogita Raghuwanshi. Each year we award drivers. There references are provided by fleet operators. This is our way of encouraging drivers; by motivating them to become a truck owner. The first driver whom we gave this award has already bought another truck. We are also conducting Mahindra Saarthi Abhiyan where we give scholarships to the daughters of truck drivers who strived to educate their daughters beyond tenth standard. We see it as recognising the efforts of the driver. The girl can opt for any course she may like. We give Rs.10,000 as scholarship. We would have dispersed one-crore rupees last year. Even this year we will conduct the Mahindra Saarthi Abhiyan.
Q. How big is the MTBL dealership network?
A. In the last three years we have set up close to 63 facilities. In addition, we have close to 53 authorised service stations, which also act as expert local workshops. We have trained 1400 local mechanics, which are connected through our call center. They also act as our road side assistance (RSA) points. So if a truck has met with an accident, the operator calls our call center. The call center in turn calls the nearest RSA point. It reaches the location of breakdown and conducts the repairs. Our call center is multi-lingual, and manned by engineers. The prime service center at Pune is where the call center is. The call center thus doubles up as a service center. So, when the driver calls, it is easier to figure out if a ASC (Authorised Service center) or a RSA should be pressed into