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Report on SCVs from Roland Berger Strategy Consultants
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September, 2014
Small commercial vehicle – India's little elephant
2 SCV Knowledge Paper_201409010_vf.pptx
This document shall be treated as confidential. It has been compiled for the exclusive, internal use by our client and is not complete without the underlying detail analyses and the oral presentation. It may
not be passed on and/or may not be made available to third parties without prior written consent from Roland Berger Strategy Consultants. RBSC does not assume any responsibility for the completeness
and accuracy of the statements made in this document.
© Roland Berger Strategy Consultants
Contents Page
A. Overview in a nutshell 3
B. Rapid growth & high dynamism are the hallmarks of the Indian SCV market 6
C. Demand drivers to trump short to mid term challenges 20
D. Solid growth expected but not across all sub segments 25
E. Choose wisely where to play and drive government engagement 27
3 SCV Knowledge Paper_201409010_vf.pptx
A. Overview in a nutshell
4 SCV Knowledge Paper_201409010_vf.pptx
SCV segment is the largest segment in the CV industry in terms of volume and will continue to remain so over the next 6 years
Source: Roland Berger
Executive summary [1/2]
> Current scenario
– The SCV segment is the largest segment within the CV industry with sales of ~432k units in FY2014 contributing 60% to the overall industry. It has outperformed all other segments declining by ~1% CAGR only over the last 2 years against the industry average of ~11% CAGR
– The SCV Cargo continues to be the biggest segment and will account for ~80+% of the total market by FY2020
– Within the SCV Cargo segment large pick-ups (2-3.5T) have been growing & account for ~54% of the segment
– SCV Passenger is a highly regulated segment and faces tough competition from 3 wheelers. Over the last year, the segment has suffered extremely high delinquency rates
– Tata Motors and Mahindra & Mahindra continue to be the top 2 players in the industry
– Tata Motors leads the market in the sub 2T truck category and the SCV Passenger segment
– Mahindra & Mahindra is expected to do well in the 2-3.5 Ton category in the SCV Cargo segment due to its strong hold in the Pick-up segment. It has also managed to attract ACE customers to higher tonnage Bolero Maxi Truck
– Ashok Leyland is one of the late entrants but has been successful with Dost cornering 14% market share in the 2-3.5 Ton category
5 SCV Knowledge Paper_201409010_vf.pptx
SCV segment is the largest segment in the CV industry in terms of volume and will continue to remain so over the next 6 years
Source: Roland Berger
Executive summary [2/2]
> Key demand drivers
– Need for last mile connectivity for both goods and people transportation. Supported by increasing rate of urbanization
– Better operating economics clubbed with better financing options making SCVs more lucrative for end customers
– New applications are being developed to expand the market prompting newer customers to buy SCVs. Poultry, milk and water distribution industries are some of the new segments established over the last year
> Challenges
– OEMs need to continuously develop new applications and also educate the customers on the usage to continue segment expansion
– SCV Passenger carriers rely heavily on permits issued by Government agencies. Therefore, there is a need to work closely with the government which faces heavy lobbying from the strong 3-Wheeler unions
> Future projections
– We expect the market to get back to the growth trajectory sometime in the 3rd quarter of the current fiscal
– The SCV industry is expected to reach ~919,000 units by FY2020 growing at a CAGR of ~13% over the next 6 years
6 SCV Knowledge Paper_201409010_vf.pptx
B. Rapid growth & high dynamism are the hallmarks of the Indian SCV market
7 SCV Knowledge Paper_201409010_vf.pptx
SCV is a relatively new segment in the Indian commercial vehicle industry; rapid growth turned it into the largest volume segment
> SCV segment was established in 2005 with the launch of ACE Truck in the sub 2 ton category. Since then it has grown considerably
> SCV segment grew by ~30% CAGR between 2010-2012 whereas it only declined by ~1% CAGR over the last 2 years. During the same time overall industry declined by ~11% CAGR
> The SCV segment has outperformed all the other CV segments and now accounts for more than 60% of the CV industry
7%
6%
35%
7%
-11%
+24%
SCV1)
M&HCV Goods
M&HCV Passenger
LCV Goods
LCV Passenger
FY 2014
712
61%
24%
5% 4%
6%
FY 2013
910
61%
25%
5% 4%
5%
FY 2012
893
50%
34%
6% 6%
6%
FY 2011
729
45%
38%
7% 6%
5%
FY 2010
580
45%
19.8 -6.9
12.8 -23.5
7.1 -11.5
21.7 -26.4
30.4 -1.4
FY 2010-12
FY 2012-14
Source: SIAM, Roland Berger Analysis
CV Industry market evolution [Sales volume, '000 units] CAGR [%]
Overall CV Industry
CV Industry growth by segment
1) SCV segment includes Tata Magic/IRIS segment and also <3.5 ton cargo vehicles like ACE, Dost, Super Ace, etc For this comparison we have not included hard top vans (e.g: Omni & Eco)
8 SCV Knowledge Paper_201409010_vf.pptx
SCV industry has been impacted by the downturn declining by 22% over last year; SCV Passenger has declined more than SCV Cargo
> SCV Cargo segment has outperformed SCV Passenger segment driven by growth in the 2 Ton – 3.5 Ton category which includes the successful Bolero Maxi Truck
> SCV passenger faces tough competition from 3Ws which account for more than ~85% of the segment. Also, competition from MPV/SUV for customers looking for comfort whereas soft top vehicles are more in demand for shared taxi applications
> SCV Passenger segment suffered due to high delinquency rate and limited government support in terms of issuance of new permits
30.4 -6.9
30.4 -0.2
Source: SIAM, Roland Berger Analysis
SCV Industry market evolution [Sales volume, '000 units]
Overall SCV Industry
-22%
261 16%
84%
SCV Cargo
FY 2010 FY 2014
432
19%
83%
17%
FY 2013
552
79%
21%
SCV Passenger
+30%
+24%
81%
19%
FY 2011
325
FY 2012
444
81%
FY 2010-12
FY 2012-14
Growth rates [%]
SCV1) Industry growth by segment
1) SCV segment includes Tata Magic/IRIS segment and also <3.5 ton cargo vehicles like ACE, Dost, Super Ace, etc For this comparison we have not included hard top vans (eg: Omni & Eco)
9 SCV Knowledge Paper_201409010_vf.pptx
Tata reinforced its dominance in the <2T category by creating the Zip segment positioned between Ace and the 3W segment
Model wise segment share trend 2010-14
8%
14%
15%
18%19%
15%16%
4%
4%0%
1%2%
70%
251 191
1% 3%
2011-12 2010-11
2% 2% 3%
3%
2013-14
167
63%
1%
1%
2012-13
247
65%
1% 1%
Ace Zip
Ace
68%
M&M Gio Porter600
Porter1000 Trump 15
Maxximo
Market share development - Goods carrier <2T
Tata Motors Mahindra Piaggio Force Motors
Source: SIAM; Roland Berger
SCV Cargo
> Since product launch, Ace has remained the market leader in the <2T segment
> The 0.5T payload category competes directly with the 3W vehicles and is priced between the 0.75T segment and the 3-Wheelers. However, it has not managed to create a threat for 3-Wheelers as the 0.5T vehicles cost at least 40% more than 3-Wheelers
> Piaggio regained its market share with the launch of the Porter series – Ape truck failure mainly attributed to the product related issues
10 SCV Knowledge Paper_201409010_vf.pptx
3W Cargo segment has managed to hold its ground even though it faces tough competition from SCV Cargo segment
Model wise segment share trend 2010-14
56%61%
54% 53% 52%
15%
19%
18% 21% 23%
8%
9%
12%15%
17%7%
7%9%
9%13%
4% 7% 8%0%0%0% Bajaj Force Motors
2013-14
95 0%
2012-13
97
2011-12
107
2010-11
101
Piaggio Vehicles
Scooters India
Mahindra & Mahindra
Atul Auto
3%
2009-10
91
1%
Market share development – 3W Cargo
Source: SIAM; Roland Berger
SCV Cargo
> Overall 3W Cargo segment has increased by CAGR ~1% over the last 5 years. However, it declined by ~2.5% the last year
> This segment though faces more competition than 3W passenger since there are no regulations in terms of permits. However, they have managed to sustain their volumes since they also cost ~40% less than the SCV cargo entry range vehicles (For eg: Tata Ace Zip)
> Piaggio continues to be a market leader in the 3W cargo segment and now accounts for ~52% of the market
> Atul Auto has been a success story. It has gained ~10% market share over the last 5 years driven by the launch of rear mounted engines and their focus towards Tier II & Tier III cities
3W Cargo
11 SCV Knowledge Paper_201409010_vf.pptx
Rapid growth of Dost indicates significant opportunities exist for new players. Right product and good network critical for success
Model wise segment share trend 2010-14
53%43%
33%38%
18%
13%
18%
25%
15%
12%
16%14%
7%
18%14%
10%
7%
7%0%
7%6%
2013-14
4%
82
Winner 1%
110
Bolero Maxi Truck
0%
Genio
Dost
1%
3%
1%
Bolero Pick-up
Superace
4%
Trump40
1%
193
3% 4% 2%
Trax Pick-up 207
190
0%
2012-13
Xenon
2011-12
1%
2010-11
1%
Market share development - Goods carrier 2-3.5T
Mahindra Tata Motors Ashok Leyland Force motors Hindustan Motors
Source: SIAM; Roland Berger
SCV Cargo
> M&M dominates the pick-up segment with its products derived from SUV/ MUV platforms
> M&M has also managed to attract customers from less than 2T category by keeping the price gap between Bolero Maxi Truck and lesser tonnage ACE to less than INR 39,000 as a result of which it has gained 12% market share over the last 2 years
> Most OEMs provide loans through their financing arms in order to increase penetration in this segment
12 SCV Knowledge Paper_201409010_vf.pptx
M&M has successfully managed to convert <2T customers by reducing the price gap between Bolero Maxi Truck & ACE
Annual volumes and market share
72% 57% 51% 63% Segment
share (%)
Volumes
('000 units)
Case study – Bolero Pickup & Bolero Maxi Truck
Source: SIAM, press research, primary interviews, Roland Berger
59
44
15
34
62
FY 2011
62
96
FY 2013 FY 2012
48
15
Bolero Pickup
Bolero Maxi Truck
+27%
121
73
48
FY 2014
47%
18%
CAGR growth rate
SCV Cargo
> 1.5-2T truck customers are shifting to Bolero Maxi Truck (BMT) due to the following reasons:
– Price differential: Tata Ace which is a market leader in sub 2T category is only cheaper by less than INR 40K from Bolero Maxi Truck
– Product differential: Incremental product improvements makes Bolero Maxi Truck even more attractive:
- Pay load increases from 1.5T to 2.5T
- Engine displacement increases from 705 cc to 2523 cc
- Power increases from 16 HP to 62 HP
> M&M also has managed to launch several customer centric programs in order to retain and grow SCV customer loyalty for example:
– In May 2014, M&M launched Uday under which following benefits are being offered to customers:
- Discounted mobile recharge coupons
- Accidental insurance (upto INR 2 lakhs)
- Referral bonus in the form of free service benefit
- Discounts on labor and spare parts
13 SCV Knowledge Paper_201409010_vf.pptx
Ashok Leyland followed a partner based approach for its SCV entry and has established a significant brand value with success of Dost
27,080
34,794
7,593
FY11
+89%
FY12 FY14 FY13
n/a 7% 18% 14% Segment
share (%)
n/a
Volumes
(units)
Case study – Dost
Source: SIAM, press research, primary interviews, Roland Berger
SCV Cargo
Annual volumes and market share > First product from the Ashok Leyland Nissan Joint Venture –
based on the Nissan Vanette
> Commercial launch of Dost in September 2011 – Phased launch covering only 6 states in the first few months
> Dost product upgrade in July 2013 to marginally increase engine power and cosmetic changes such as headlight, tail light, guard, steering wheel, instrumental cluster, dashboard and rear ventilated glass
> Commission of new plant delayed due to the current market slowdown. Plant to have a capacity of 150,000 units once completed
> Passenger carrier (Dost Express) based on the same platform already under trials
> Plans to have annual sales of around 45,000 in the next couple of years
Backup
14 SCV Knowledge Paper_201409010_vf.pptx
Preference for soft top vehicles for intra-city and rural applications has resulted in market share growth for Tata and Mahindra
Model wise segment share trend 2010-14
43%36%
30% 34%
32%
25%
17%20%
24%
20%
27%
21%
8%
7%
11%12%
5%7%
Eeco
Omni
4% Maxximo
Gio Trip
2013-14
191
Iris
1%
2012-13
237
Magic
4%
2%
2011-12
235
3%
2010-11
214
Maxximo
minivan
Venture
1%
3% 2%
0%
Market share development – Passenger carrier1)
Maruti Suzuki Tata Motors Mahindra Force Motors
SCV Passenger
> Customers are increasingly preferring soft top 4W vehicles over the conventional 3W for urban share taxi application
> Hard top vans are being replaced by MPVs as end users demand more comfort
> As a result, both Tata Motors and M&M have managed to grow their market share. Tata Motors owns more than 30% of the market
> However, 4Ws have not managed to topple 3Ws as they cost ~40% more than 3W and weigh almost double making them less fuel efficient
Soft top: 72,116 units
Hard top: 118,628 units
1) SCV segment includes Tata Magic/IRIS segment . However, for comparing purposes we have included hard top segment
Source: SIAM; Roland Berger
15 SCV Knowledge Paper_201409010_vf.pptx
SCV Passenger segment has not been able to create in roads into the 3W passenger segment where Bajaj Auto is the market leader
Model wise segment share trend 2010-14
47% 47% 48% 51% 49%
37%33% 31%
30%30%
9%10% 12% 10% 11%
3% 4% 5%4%3%5%4%
Piaggio
Mahindra & Mahindra Atul Auto
TVS
Scooters India Force Motors
2013-14
385
Bajaj
2%
2009-10
350
1% 3%
2%
2012-13
441
2%
2%
2011-12
406 2%
2010-11
425
Market share development – 3W Passenger carrier
Source: SIAM; Roland Berger
SCV Passenger
> Overall 3W Passenger segment has increased by CAGR ~2.4% over the last 5 years. However, it has declined by ~13% the last year
> This segment continues to remain highly regulated with most routes requiring permits from government authorities
> Bajaj Auto continues to be a market leader in the 3W passenger segment and continues to account for ~49% of the market
> This segment has managed to keep the competition off from SCV Passengers mainly due to the price gap (~40% less than SCV Passenger). Also, they enjoy strong lobbying with the government bodies through the unions
3W Passenger
16 SCV Knowledge Paper_201409010_vf.pptx
Negative growth in passenger carriers is driven by the increasing preference for MPVs over hard top vans
20141)
191
72
119
2013
237
114
123
2012
235
83
152
2011
214
52
161
CAGR +1%
Soft tops
Hard tops
2020
205
167
38
Historical and projected sales, SCV passenger segment, 2011 – 2020 ['000]
71% 73%
55% 55%
30%
29% 27%
45% 45%
70%
Van
MPV
2020
465
2011
300
2014
348
2013
434
2012
322
Segment volumes 2011-20 – Passenger carriers1) Segment share - MPV vs. Van
-17%
+15%
CAGR
14-20
> Hard top vans (primarily used as personal vehicle and as taxis) expected to have a negative growth due to shift towards MPVs and soft tops
> MPVs are preferred over conventional vans due to customer preference for better comfort and vehicle features
> Soft top vans used for intra city transport as an alternative for 3–wheelers expected to have a positive growth rate of 15% CAGR
Source: IHS; SIAM; Roland Berger
SCV Passenger Backup
1) SCV segment includes Tata Magic/IRIS segment . However, for comparing purposes we have included hard top segment
17 SCV Knowledge Paper_201409010_vf.pptx
Key players augment their volumes by having presence across all sub-segments in the SCV space
Gio Zip Porter 600
Maxximo Porter 1000 Ace
<2T
GVW <1.5T
GVW
1.5-2.0T
2-3.5T
Trax Pickup 207 Xenon Bolero Pickup Genio
Pickup
Dost Trump 40
Winner Superace Bolero maxi Truck
Mini truck
Product overview
Passenger
carrier Iris Magic Maxximo Gio Omni Eeco
Source: SIAM; Roland Berger
1) Not in production
Trump 151)
Trip1)
SCV product landscape
18 SCV Knowledge Paper_201409010_vf.pptx
Most OEMs have aggressive expansion plans in India. Significant overcapacities to increase margin pressures in SCV
SCV installed capacities ['000 units] Selected future OEM investments in India [INR cr]
> Isuzu investment of 3000 Cr. for production of both SUVs and LCVs (pickups) – Plant capacity of 100,000 in its AP plant
> Ashok Leyland Nissan JV total investment of 2500 Cr. of which 50% has been spent already. Plant with capacity of 150,000 being built
> Tata Motors overall investment of 1500 Cr. for FY14-15. Investments only for new product development. No additional capacity being planned
> Mahindra to invest 250 Cr. for expanding capacity in AP for SCV and PV. Additional 500 Cr. for new product in ICV and LCV product refreshes
> Eicher to invest 250 Cr. in the JV with Polaris. Potential additional investments for own SCV models
250750
1,500
2,5003,000
Eicher Mahindra Tata2) Ashok Leyland Isuzu
Investment landscape
500,000
260,0001)
115,000
27,000
1) Estimated combined SCV/pickups production capacity across plants 2) Tata Motors: overall future investments in CV
36,000
24,000
Source: Company websites; Press research; Roland Berger
12,000
Total capacity : 974 k units
SCV Industry expansion plans
19 SCV Knowledge Paper_201409010_vf.pptx
SCV Cargo is used in several industries across multiple applications. SCV passenger support last mile connectivity
Construction Material delivery
Cold drink/water delivery
Electrical goods customer delivery
Vegetable selling
Closed container Cash van Mobile billboard Milk/water tanker
Application examples1)
Source: Company websites
SCV applications
1) Not exhaustive: Other applications include delivery vehicles for paint industry, poultry and mobile food vans etc.
School van Black & yellow taxi Private office pickup & drop
Intercity travel like metro station pickup &
drop
SCV
cargo
SCV
Passen-
-ger
20 SCV Knowledge Paper_201409010_vf.pptx
C. Demand drivers to trump short to mid term challenges
21 SCV Knowledge Paper_201409010_vf.pptx
EBITDA
PAT
RoE
31.0%
6.8%
19.7%
15.5%
2.3%
7.9%
4W 3W
Growth of SCV segment will be driven by volume shift from other vehicle segments and increasing need for last mile connectivity
Need for last mile connectivity
> Increase in rural consumption drives growth in the light CV segment – SCVs form an integral part of the hub & spoke model – SCVs required to reach the last mile
> Increasing urbanization and stringent traffic regulations in major cities limiting movement of higher tonnage vehicles also aids the growth of the LCV/SCV segment
> Metro rail network is planned/under development in as many as 10 cities across India amounting to ~650 km of metro lines further expanding market for last mile connectivity
1
Better operating economics
> Preference for 4-Wheel higher tonnage vehicles over the smaller 3-Wheel vehicles primarily due to the higher profitability with the 4W vehicle
> Within the SCV segment 2-3.5T is being preferred more due to the higher tonnage while the .75T payload category (Zip/Gio) still remains a small volume segment
2
Availability of finance/interest rates
> SCV sales depend on the ease of availability of loan, % LTV and interest rates
> Higher delinquency rates in CV loans have led to tightening of lending norms - reducing LTVs, more stringent due diligence processes and focusing only on large fleet operators with clean track record
3
Key demand drivers [1/2]
’25
100%
37%
63%
’10
100%
31%
69%
Urban pop-
ulation ratio [%]
Urban
Rural
Margins
Source: RBI; UN; Analyst reports; Roland Berger
0.0%
2.0%
4.0%
2010
2011
2012
6 1
2009
11
Months since issuance
Delinquency rates
Demand drivers
22 SCV Knowledge Paper_201409010_vf.pptx
Growth of SCV segment will be driven by volume shift from other vehicle segments and increasing need for last mile connectivity
Better product quality than 3W
> Small commercial vehicles offer more headroom, leg room and cargo area
> Small commercial vehicles also have independent strut suspensions which help in reducing vibrations, noise, waggling and shakes while traveling. It has coil-springs with semi-trailing arm at the rear. These features gives it a car-like driving comfort and riding comfort
> SCVs come with doors and 4Ws are considered safer than 3Ws
> As a result products like Ace Zip (0.5 T) are growing at a rate ~10-15%
4
Development of new applications for SCVs
> OEMs have been developing several applications for the SCVs in order to increase penetration across industries
> Some of the new applications include paint industry, poultry, small water tankers, garbage disposals, etc.
> This has helped in expanding the market for SCVs
5
Source: Expert Interviews, Analyst reports; Roland Berger
Power
GVW
11-60 HP
0.5-3T
8-15 HP
< 0.5T
4W 3W Specs
Mileage (Kmpl)
~10-281) ~30
Key demand drivers [2/2]
Demand drivers
1) Mileage varies by tonnage category
23 SCV Knowledge Paper_201409010_vf.pptx
SCV Cargo
> This is a relatively new segment and not many customers are aware about its applications
> As a result it is the responsibility of the OEM to develop and educate customers on the various applications
> Last mile delivery system is highly unorganized still depending greatly on 3Ws and other traditional modes of transportation
SCV Passenger
> This segment relies primarily on government permits. Therefore, it becomes extremely important to liaise with government authorities to procure the permits
> 3-wheeler lobby is extremely strong and manages to take the bigger pie of the permits
> There is a price gap of ~INR 90k between SCV Passenger and 3-Wheelers making it difficult for 3-Wheeler customers to graduate to 4-Wheeler carriers (Sales 3W: ~480k, SCV P: ~72k)
> Most drivers are first time users of any automobile. As a result considerable effort is needed to train/educate them about the vehicle/applications, etc.
> Lack of financing options: Drivers lack credible credit history and it becomes difficult for banks, etc, to give them loans
> High delinquency rates: Tough economic situation has lead to really high delinquency rates (especially in SCV passenger )
Overall
Several challenges need to be overtaken in order to achieve higher penetration of SCV Cargo and Passenger carriers
Major challenges
Source: Expert interviews, Roland Berger Analysis
> Considerable effort still needed to improve the penetration of SCV Cargo and Passenger carriers like better financing schemes
> Need to develop an eco system around this segment including driver training schools, SCV Passenger carrier unions/associations to counter the powerful 3W lobby and actively liaise with Government authorities
Challenges
24 SCV Knowledge Paper_201409010_vf.pptx
Strong 3-Wheelers unions lobbying and lack of coordination between government bodies impact SCV passenger carriers
Press clips
Challenges Backup
Source: Press clips
25 SCV Knowledge Paper_201409010_vf.pptx
D. Solid growth expected but not across all sub segments
26 SCV Knowledge Paper_201409010_vf.pptx
SCV industry will grow at a CAGR of ~13% till FY 2020 driven by demand for better quality last mile connectivity/delivery vehicles
21%
FY
2020
552
919
+13%
82%
FY
2014
SCV Cargo
18% SCV Passenger
432
83%
17%
FY
2013
79%
Source: SIAM, Roland Berger Analysis
> Growth projections are based on the regression analysis based on GDP growth as SCV
> Rise in demand of SCVs in the rural sector driven by better connectivity, rising income levels and further urbanization of tier 3/4 towns and cities
> OEMs will continue to focus on this high growth sector due to low penetration and huge potential customer base
> Steady government for the next 5 years that is focused on infrastructure development like metro rail network and other growth related policies
> Customer preferences will continue to evolve (soft tops, MPV/SUV, higher tonnage vehicles) ensuring OEMs continue to innovate to develop & market products as demanded
5.6 15.1
8.0 13.1
FY 2013-20
FY 2014-20
Growth rates [%]
SCV Industry projected market evolution ['000 units]
Future outlook & projections
1) SCV segment includes Tata Magic/IRIS segment and also <3.5 ton cargo vehicles like ACE, Dost, Super Ace, etc For this comparison we have not included hard top vans (eg: Omni & Eco)
27 SCV Knowledge Paper_201409010_vf.pptx
E. Choose wisely where to play and drive government engagement
28 SCV Knowledge Paper_201409010_vf.pptx
OEMs need to focus on developing applications, understanding customer needs and liaising with government authorities
Source: VECV; Roland Berger
Recommendations
> Understand the customer requirements as they keep on evolving. For example: Over the last 2 years customers have moved to higher tonnage pickups. Important to pre-empt these trends and adapt
> Liaise with the local government authorities in order to further promote SCV Passengers
> Continue to spread awareness around the benefits, applications etc among its potential customers to further grow the market
> Develop new applications in order to expand the market. Paint distribution, gas cylinders, water, waste disposal examples of some of the new applications
> Develop drivers for this segment as majority of the end users belong to lower economic section of the society and most likely will be the first time users of any kind of automobile
OEM
> Start investing and promoting infrastructure projects like Metro rail networks across the various congested cities. This will help create opportunities for last mile connectivity
> Streamline the Permit issuance system for SCV passenger carriers and create an environment for healthy competition between SCV Passenger carriers & 3-Wheelers
> Come up with schemes like cheaper financing options to promote the usage of SCVs, specially in the rural segment in order to further promote connectivity of rural areas with urban centers
Government
Recommendations
29 SCV Knowledge Paper_201409010_vf.pptx
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