CHAPTER 1

AN OVERVIEW OF THE INDUSTRY

1.1BRIEF HISTORY OF THE INDUSTRY
The first car that plied on Indian roads was as early as 1897 and the first Indian to own a
car in 1901 was Jamshedji Tata. It was in 1942, before India’s independence that Hindustan
Motors manufactured the first automobile in India.Soon after India’s independence, the
Government of India tried to boost the sector by encouraging manufacturing of
automobiles.Before that, the cars were imported directly.

The automobile sector formally came into being in the year 1952 when the Government
appointed its first tariff commission with the aim of indigenizing this industry. The year
1952 also marked the introduction of passenger cars in the country. Manufacturers like
Hindustan Motors, Premier Automobiles and Standard Motors came into the limelight.
Even SUV’s started being manufactured by Mahindra and Mahindra, Bajaj, Standard
Motors, etc. Cumbersome and medium commercial vehicles were made by 7 manufacturers
which included Ashok Motors, Simpsons and Co., Premier Motors and more.  Two-wheeler
vehicles like scooters, motor bikes or mopeds were manufactured by Bajaj Auto, Escorts
Group, Royal Enfield, Automobiles Product of India, Ideal Jawa, etc.
Although steam-powered road vehicles were produced earlier, the origins of the
automotive industry are rooted in the development of the gasoline engine in the 1860s and
’70s, principally in France and Germany. By the beginning of the 20th century, German and
French manufacturers had been joined by British, Italian, and American makers.

The automotive industry experienced patent controversies in its early years. Most notable

were two long, drawn-out court cases in Britain and the United States, in each of which a
promoter sought to gain control of the new industry by filing comprehensive patents. In
Britain the claim was rejected by the courts in 1901, five years after the patent application.
In the United States there was a legal battle between Ford and the Association of Licensed
Automobile Manufacturers over the Selden patent, which the association claimed as a basic
patent on the gasoline-powered car. In 1911 the courts held the patent “valid but not
infringed” by Ford. The main consequence of the decision was the formation of the
predecessor of the Alliance of Automobile Manufacturers to supervise an agreement for
cross-licensing patents, which was ratified in 1915.
1.2BUSINESS PROCESS OF THE INDUSTRY
Many of the business processes used in the manufacturing of today’s cars were developed
from a production system devised by Toyota in Japan. Best practices such as Just-In-Time
(JIT) and Lean Manufacturing were developed around the ‘Toyota Production System.’ JIT
and Lean Manufacturing processes are central to the smooth running of many production
lines around the world and EDI provides a fast and efficient way to transfer business
documents in order to support these types of manufacturing processes. Providing visibility
of inventory levels and notification of when shipments are due to arrive at the production
line are critical to making JIT and Lean manufacturing processes a success.

The global nature of the automotive industry means that it is important for car
manufacturers to be able to onboard their suppliers as quickly as possible, no matter
where they may be based around the World. Many car manufacturers have established a
manufacturing presence in Eastern Europe, Brazil and China, for example. It is important to
ensure that suppliers located in these regions are able to exchange EDI documents as
smoothly as possible. ICT skills across low-cost or emerging markets are traditionally very
scarce. Therefore, the car manufacturers must ensure that they can provide simple-to-use
EDI tools that enable even the smallest suppliers to trade electronically.Due to the global
nature of the automotive industry, there are numerous communications and document
standards in use today, along with a number of regional EDI networks.

1.3MARKET DEMAND AND SUPPLY – CONTRIBUTION TO GDP – REVENUE

GENERATION
The automotive industry in India has been on a growth trajectory with
impressive spikes in sales, production, and exports over the last two years. With an average
production of around 24 million vehicles
annually and employer of over 29 million people (direct and indirect
employment), the automotive sector in India is one of the largest in the world.

India is the largest tractor manufacturer, 2nd largest two- wheeler manufacturer, 2nd largest

bus manufacturer, 5th largest heavy truck manufacturer, 6th largest car manufacturer
and 8th largest commercial vehicle manufacturer.For every vehicle produced,
direct and indirect employment opportunities are created with employment
of 13 persons for each truck, 6 persons for each car and 4 for each three- wheeler and
one person for two-wheelers.  The $ 93 billion automotive industry contributes
7.1% to India’s GDP and almost 49% to the nation’s manufacturing GDP (FY 2015-16).
 
As a major employment generator, GDP contributor and FDI earner, the automotive
industry is instrumental in shaping the country’s economy and hence regarded as a 'Sunrise
sector' under Make in India.
 In order to further promote the sector, initiatives are being undertaken by the Government
of India to promote innovation and R&D and create a favourable policy regime to
make India a prominent manufacturing destination.
 
The Automobile Mission Plan 2016 – 2026 envisages creating India as one of the top three
automobile manufacturing centres in the world with gross revenue of US $ 300 bn by 2026.
Policy Initiatives & Investments Major Investments and FDI Inflows FDI Inflow
The Automobile industry witnessed a US $ 5.5 bn of FDI inflow into the country during
April 2014 to March 2016. The US automotive market took deep dives across 2020. There
is a significant shift towards online purchasing. As many people prefer to purchase vehicles
in-person for obvious reasons, this may explain why so much of the purchasing interest has
dropped away. However, companies and manufacturers can pivot further to ensure that
they appeal to buyers once again, in the ‘new normal.’

The automotive industry is important to global economic development. Globally,

automotive contributes roughly 3 percent of all GDP output; the share is even higher in
emerging markets, with rates in China and India at 7 percent and rising. With more than 35
automakers, the industry contributes 7 percent to India’s GDP and is responsible for 7 to 8
percent of India’s total employed population. The India automotive market demand was
pegged at 4,266,062 units in 2019. The market is expected to expand at a compound annual
growth rate (CAGR) of 11.3% from 2020 to 2027.
1.4LEVEL AND TYPE OF COMPETITION – FIRMS OPERATING IN THE INDUSTRY
 The automotive sector is one of India's largest and fastest growing manufacturing sectors.
It is ranked the 11th largest passenger car producer in the world. In the category of
motorcycles and scooters, India is ranked 1st and 2nd respectively. With India increasingly
liberalizing its market place, many new joint ventures evolved, resulting in close to 2 dozen
global auto manufacturers setting up shop in India.

Automotive industry, globally, as well as in India, is one of the key sectors of the economy.
Due to its deep forward and backward linkages with several major segments of the
economy, the industry has a strong multiplier effect of industrial growth. The rise in
efficiency and productivity helps directly and indirectly to accelerate the efficiency of other
sectors through factor movements of goods and people in the economy.

Competition in India’s automobile and parts sector had been heating up in the recent years.
Many global players in the automobile and parts industry have already set up presence in
India. Most of them are through tie-ups with dominant local players, while some are done
entirely on their own.In the absence of strong competition in the past, the local car
manufacturer Maruti Udyog Ltd (MUL) has virtually dominated the Indian automotive
market in the passenger segments since the 1980s. As the automotive manufacturing
sector rapidly evolved through the dynamics of open market and deregulation, many new
joint ventures (both technical and financial) were formed between local players with
leading global manufacturers. In 1982, MUL, then a wholly government-owned company,
signed up a collaboration agreement with Suzuki of Japan to establish the volume
production of contemporary models. Subsequently, the licensing regime was scrapped in
1993 paving way for 17 new ventures, of which 16 are now manufacturing cars.

1.5PRICING STRATEGIES IN THE INDUSTRY

Pricing is one of the major elements of the marketing plan. It enables to differentiate a
product or service from another one of similar characteristics. Pricing decisions derive
from the underlying objectives and best-suited strategies. The elements of pricing objective
include profit maximization, revenue maximization, quality leadership, quantity
maximization and survival . Pricing objective is focused on three factors, i.e. nature, the
desired level of attainment and the associated time horizon. Pricing objectives of service
organizations are profit maximization, sales maximization, market share maximization,
market share increase, return on investment (ROI), price differentiation, price stability in
the market, sales stability in the market, discouragement of new competitors, maintenance
of existing customers, long term survival.The underlying factors that determine a
company’s price decisions can be categorized as internal factors and external factors.
Internal factors include company’s marketing objectives, marketing mix strategy, and costs;
whereas external factors consist of market environment, demand, competition.

Automakers usually determine vehicle list prices with a cost-plus approach and
comparisons to competitive pricing, but do not fully take into account customers'
perspective. Additionally, they tack on significant sales incentives that lead to the typical
transaction price levels. Digital and customer-specific functions will shape the automotive
industry in the future. The pricing of such functions could, for example, be based on the
current sales price of the respective function. In addition, the savings potential in
production and development – due to a reduction in variants through on-demand functions
– should be taken into account in pricing. The goal must be to develop a calculation model
that sensibly links all variables (including customer needs, savings, usage rates, “enabler
fees” or even customer groups) and thus supports the creation of new pricing models.

For example, a lane departure warning system currently costs an average of €900 when
purchased new, depending on the manufacturer. With an intelligent pricing model, these
one-time costs could be spread over a longer period of time and thus generate continuous
revenue. If this function were booked at a usage fee of 1.99 €/day and used on an average
of three days a week, the annual turnover would be around 300 €. In this way, the original
sales price of 900 € could be amortized within the first three years. All further revenues
from the fourth year on could thus be generated as net profits.In addition, this calculation
does not yet include any savings potential from the variant reduction already mentioned,
nor any possible “enabler fees” to be paid by the customer when purchasing the vehicle.
The example of lane departure warning system therefore clearly shows how a changeover
to new business models can be successful.

1.6INDUSTRIAL PERFORMANCE GLOBAL, NATIONAL AND REGIONAL BASIS

It is projected that the global automotive industry will grow to just under nine trillion U.S.
dollars by 2030. It is anticipated that new vehicle sales will account for about 38 percent of
this value. Globally, Volkswagen Group and Toyota Motor are the leading carmakers in
terms of revenue. The Japanese auto giant generated almost 250 billion U.S. dollars in
revenue in 2020, while Volkswagen raked in a little more than 245 billion U.S. dollars. The
U.S.-based Tesla has also recorded a steep growth throughout 2021, as the brand with the
highest brand value growth worldwide across sectors. Overall, automobile export reached
4.77 million vehicles in FY20, growing at a CAGR of 6.94% during FY16-FY20. Two
wheelers made up 73.9% of the vehicles exported, followed by passenger vehicles at
14.2%, three wheelers at 10.5% and commercial vehicles at 1.3%.In 2020, India was the
fifth-largest auto market, with 3.49 million units combined sold in the passenger and
commercial vehicles categories. It was the seventh-largest manufacturer of commercial
vehicles in 2019.

The two wheelers segment dominate the market in terms of volume owing to a growing
middle class and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.India is also a prominent
auto exporter and has strong export growth expectations for the near future. In addition,
several initiatives by the Government of India and major automobile players in the Indian
market is expected to make India a leader in the two-wheeler and four-wheeler market in
the world by 2020.

1.7PROSPECTS AND CHALLENGES IN THE INDUSTRY

The automotive industry, which, pre-pandemic, was remnant of numerous disruptions such
as electric mobility, ridesharing, and the like, stood stripped of its bright future, as experts
began to wonder, whether the sector would ever witness light at the end of the
tunnel.When the pandemic was at its peak in 2020, the automotive sector seemed to be in
one of its worst phases. Already faced with a host of problems, like environmental issues
due to emissions and changing consumer requirements, automakers had to deal with
further issues as COVID-19 spread, like slumping car sales and political uncertainty. As per
rating agency Ind-Ra, automobile sales in India were expected to decline by 25% in 2020-
2021. The onslaught of the pandemic has thus exacerbated the existing challenges of the
automotive industry, causing unprecedented uncertainly among market players.

One of the biggest issues facing all industries offering any kind of manufacturing is, of
course, that of social distancing. Job losses as a result of halts to manufacturing rose, too.
The automotive sector and its interconnected value chain account for about 6% of global
GDP and 8% of global goods exports, and the downturn may shave one percentage point off
global GDP from 2017 to 2020.The automobile industry is supported by various factors
such as availability of skilled labour at low cost, robust R&D centres, and low-cost steel
production. The industry also provides great opportunities for investment and direct and
indirect employment to skilled and unskilled labour. Indian automotive industry (including
component manufacturing) is expected to reach Rs. 16.16-18.18 trillion (US$ 251.4-282.8
billion) by 2026. The Indian auto industry is expected to record strong growth in 2021-22,
post recovering from effects of COVID-19 pandemic.
 CHAPTER 2

COMPANY PROFILE
2.1 BRIEF HISTORY OF THE ORGANIZATION AND CURRENT BOARD OF
DIRECTORS/ORGANIZATIONAL CHART

BharatBenz is a brand of Daimler India Commercial Vehicles (DICV), itself a wholly owned

subsidiary of the German manufacturer Daimler Truck AG. The brand is known for its
trucks and buses. The headquarters of BharatBenz is at Oragadam, Chennai, India. In 2008,
Daimler AG planned to enter the Indian market in a joint venture with Hero MotoCorp to
build medium and heavy commercial vehicles. A joint venture named Daimler Hero
Commercial Vehicles (DHCV) was formed under a Memorandum of Understanding (MOU)
in July 2008 with 60% holding of Daimler AG and 40% holding of Hero Group. Daimler AG
and Hero Group announced they dissolve the Daimler Hero Commercial Vehicles Ltd. joint
venture on 15 April 2009 because of an economic downturn in India. Hero group decided
to focus on core operation and return the 40% stake in DHCV joint venture to Daimler AG.
With 100% stake, Daimler AG renamed DHCV as Daimler India Commercial Vehicles
(DICV).

The launch of the BharatBenz brand was announced on 17 February 2011 at Chennai by
Daimler AG Chairman Dieter Zetsche and the first BharatBenz truck was unveiled on 4
January 2012 at the Delhi Auto Expo. The decision to launch the brand was prompted by
Daimler's determination to compete in the fast-growing Indian truck market against
existing Indian brands such as Ashok Leyland, Tata Motors and Indian ventures of other
leading global truck manufacturers like VE Commercial Vehicles (Volvo-Eicher Motors-
Joint Venture). The entire proposed truck line-up in the 9 to 49-tonne range was unveiled
on 2 March 2012. Early 2014 BharatBenz launched the tractor trailer models and a
construction model making itself a full range player in the segment above 9T category
spanning across medium and heavy-duty truck segments.In May 2015, BharatBenz
inaugurated its new bus manufacturing facility in Oragadam, Chennai and unveiled its
second wave of products – BharatBenz and Mercedes-Benz buses as well as a new range of
BharatBenz trucks and BharatBenz heavy-duty tractors.

CURRENT BOARD OF DIRECTORS

NAME DESIGNATION
MANISH DINESH THAKORE Director

SATYAKAM ARYA Director

HETAL NATAVARLAL LALIGI Director

KARL ANTON JOHANNES DEPPEN Director

ORGANISATIONAL CHART

2.2 MISSION/VISION STATEMENT AND QUALITY POLICY FOLLOWED/QUALITY

CERTIFICATION ATTAINED
MISSION/VISION STATEMENT

Our constant endeavor is to provide only the best in Truck-o-nomics. We believe in value-
led globally proven technology. As a technology leader we further stand for India’s safest
and most reliable trucks.

QUALITY CERTIFICATION

Daimler India Commercial Vehicles Pvt. Ltd. (DICV), the 100% wholly-owned subsidiary of
the world’s leading truck manufacturer Daimler AG, received the coveted TS16949:2009
certification for implementation and maintenance of Quality Management System in the
area of Design & Development and Manufacture of commercial vehicles. Dr. K Murugan,
Managing Director & CEO, ULDQS India, a wholly owned subsidiary of DQS Holding, GmbH,
presented the certificate to Mr. Marc Llistosella, Managing Director and CEO, DICV at
Daimler India’s corporate office in Chennai.Affiliated to the International Automotive Task
Force (IATF), the ISO/TS 16949 is one of the very important accreditations, globally
recognized, specifically intended for the Automobile industry. The certification also covers
critical parameters such as optimization of cost, time and resources

Commenting on the certification, Mr. Marc Llistosella, Managing Director & CEO, DICV, said,
“It is indeed a significant milestone in our journey of commitment to deliver quality
products and services to our customers. It is important to note that right from our
inception; all our stakeholders including the suppliers and our employees across functions
have strived to achieve global quality standards at every step of our operations. This
ISO/TS16949 certification demonstrates our strict adherence to quality standards and is a
testimony of the high standards that Daimler follows worldwide.”Daimler India
Commercial Vehicles obtained this certification meeting all requirements in a record time
of 17 months from start of production, after rigorous audits conducted by the certifying
body at its manufacturing plant at Oragadam, near Chennai.

2.3BUSINESS PROCESS OF THE ORGANIZATION-PRODUCT PROFILE

DICV set up a manufacturing plant for the BharatBenz trucks in Oragadam,

near Chennai in Tamil Nadu at an investment of over €700 million ( ₹44 billion).This is its
biggest investment outside Europe.Construction area for plant is 400 acres, out of which 47
acres are dedicated to 3-lane 1.55 kilometer test track.Test track include a bump track,
pothole testing and articulation sections, a water trough, an inspection ramp and a control
tower.Initial production capacity at the plant was 36000 units per year for 2012 and was to
be expanded to 70,000 units per year by the start of 2013 with an additional investment
of ₹3.5 billion.Series production started in June 2012 with the 2523R truck; sales began in
September 2012.
Currently, BharatBenz has over, 3500 employees including both Indian and German staff.
Localization rate for BharatBenz truck is 85%with more than 450 local suppliers out of
which 41 per cent are based in Tamil Nadu and 44 per cent are in rest of the country, with
an aim to exceed 90%.Daimler has test driven its trucks a distance of 4.5 million km in
various conditions at its test track in Oragadam.

2.4CUSTOMERS OF THE ORGANIZATION-LEVEL OF OPERATIONS

(GLOBAL/QUALITY/NATIONAL)

Daimler Trucks has said that sales of BharatBenz trucks rose by 59% to 10,300 vehicles as
compared to 6,500 units in India.The truck major attributed the increase to expansion of
the product portfolio by five more models and the growth of the dealer network to about
80 operations.BharatBenz has managed to get the third slot in the heavy-duty trucks and a
market share of 5% in India.Until the end of 2014 more than 1,000 of these FUSO trucks
have been sold outside India. FUSO trucks, manufactured at Oragadam facility, near
Chennai are also being exported to other countries.In India, the further expansion of the
BharatBenz sales network from 80 to 100 dealers should lead to a significant increase in
sales, said the company adding that the extended offering of FUSO trucks from Indian
production should ensure additional momentum after the 2015 start of exports of FUSO
trucks 'Made in Chennai' to Latin America and the Near and Middle East. Daimler India
Commercial Vehicles (DICV), the Indian arm of Germany’s Daimler AG, has begun 2021
with significant growth in sales of its BharatBenz trucks and gain in market share in the
medium and heavy commercial vehicle segment (M&HCV-trucks) during the January-
March quarter.

2.5COMPETITORS OF THE COMPANY

 CSM Truck. 1,000. $211 Million.

 PACCAR. 27,000. $18 Billion.
 Komatsu. 62,823. $22 Billion.
 L&T Financial Services. 1,336. $1 Billion.
 Hyster. 1,001. $200 Million.
 KME Corp. 650. $131 Million.
 Toyota Motor Sales USA. 6,500. $3 Billion.
2.6STRATEGIES-BUSINESS, PRICING, MANAGEMENT

It was assumed that Daimler only wanted to target the niche segment when they
introduced their premium model, Actros into the Indian Truck market. Another major
player in this department was Scania, a global player created by MAN for the new budget
segment. India's vast market is dictated by the budget segment and Daimler has rightly
realised this potential for incredible growth. Indian market could very well be the biggest
market for this group if they pool in their resources wisely, and their main challenge would
be to balance the scales of their brand image with indian prices and position. It is very
important to have the right product position with balance and market dynamics at
BharatBenz.

The company has seen tremendous growth over the years. 2013 registered a whopping
73% increase in sales as compared to the last year, and 2014 saw a 172% incredible
increase in sales from the previous year. The sales figure every year prove beyond doubt
the giant lies that BharatBenz has thrust forward to achieve more number of sales in India,
with their impressive product portfolio.

The Rigid Haulage truck segment of DICV has seen a steady growth in the transition from
2013 to 2014. The Tipper on the other hand has noted a considerable de growth of 40% in
sales and has dipped extensively over the same year. Tractor or loang Haulage sales on the
other hand have seen a impressive 96% increase leaving everyone mouth-gaping.

The two most targeted and significant regions for truck sales in India have been the
southern and western regions. Bharat Benz has targeted the South region and have
managed to capture 48% sales in this region. It's incredible success in this region could be
attributed to the major fleet owners and decision makers who inhabit this region. This
region is also characterized by its flexibility, both in the South and West. People in the
North and East regions have been observed to have an open mind towards new brands. The
company gained 2% sales in the south and the East, lost another 2% in the West and north.
The 16T truck was not launched initially by the company. Only the 12T was available
powered by its 70hp engine and it's payload and application suitability. After the 16T was
introduced due to market, dealer and customer demand, sales saw a hike. Kerala and Goa
are two major regions of development for this segment.

State wise sales trend showed that BharatBenz has made a strong foothold in Maharashtra.
TamilNadu, Karnataka. Regions of South India, Punjab – Haulage market have also shown a
positive, impressive growth due to the attractive multi axle tipper market.

Initially, the company targeted it's truck sales only in certain states and regions to ensure
proper sales-service. The plan to capture market share has been a goal for the company
who have reached there though division of regions zone wise and step wise. Jharkhand, a
potential market could be next to capture the market with it's off road tipper. After
networking the Dealers in India, the company has also launched its Tractor. Products like
the Tipper and LCV were introduced during the beginning of sales as the run in a limited
span. The company approached sales wisely with the goal of efficient, quick service.

Daimler has used effective entry strategy into the the Indian Market segment and Product
segment. The Company has been seen with such enthusiasm that the BharatBenz truck
segment is extending onto the Bus project for budget segment. It’s product positioning and
value proposition made it popular and welcoming entry into the Indian commercial vehicle
market. Also,DICV started export in a short period of time to neighbouring countries.

Its target customers are the medium & large fleet owners in South India which then
extended into West India, North and West India region. South and East India are largest
markets for truck Industry.

The heavy duty segment is characterized by it's flagship products, 3123 and 2523. LCV has
it's flagship products as 1214 and 1217. Sales of Tipper have dipped by 16% whereas the
12T segment sales have shooted by 1%. Recently launched products like the 4023 and
4928 have also registered impressive growth.

Pricing Strategy:
BharatBenz has launched it's products at a very competitive price. They are a bit higher
than those of traditional players like Tata, Ashok Leyland. Their strategy is to give products
with additional features at the market price. Discounts are not offered by the company,
which has been bombarded by complaints and unhappy customers in the Indian market.

The Company has increased the prices of all it's products launched between 2012 to 2015
by 1 to 2 Lakhs (2.000 to 4.000 Euro).

The most sellable trucks like 2523 (Tipper), 1214B and 1217 have seen  a 2 lakh increase
in price(4.000 Euro) and sales of other products which needed to take some time to
establish  were increased by 1 lakh(2.000 Euro).

Dealer Strategy:

The BharatBenz dealer showcases their impressive infrastructure and cleverly planned
campus with all facilities made available including driver space just like any other car
showroom. There was a time when such a rich dealer network was provided by Mahindra
Truck and Bus.

Media Strategy:

At BharatBenz, they strategized by giving proper awareness of it's product through

Industry Magazines, newspapers, blogs, Digital plate form etc before launching the vehicle
into the market. They did not focus too much on popularity through advertisements, and
this decision had a positive impact on potential buyers.

Brand Strategy:

Daimler has launched a new brand in India. It gives a clear message to the market that this
is an Indian brand but characterized by Benz quality and standard. It's new logo
successfully differs from the Mercedez Benz one.  Their campaign and indirect marketing
were successful in creating an effective brand image. However some of the Western media
criticize this concept to introduce budget truck.
It give preference to public relations rather than paid advertising & promotion. The
vendors follow a very unique strategy where DICV signs an agreement with them vendors
which is very helpful for its dealers.

2.7CSR ACTIVITIES

 FUSOKids is Mitsubishi Fusoâ €™s Social Responsibility Program which aims to

support children worldwide. We in MFTBC, together with our global partnerâ €™s
network, and other existing NGOs, are committed to jointly contributing to the well-
being of children, with a focus on educational outreach.
 Daimler in Japan is committed to its role as a responsible corporate citizen. This
commitment entails an ultimate focus on quality in all its operations and business
practices. It also means the company contributes to society in a wide variety of ways
â €“ from support of cultural exchange and educational programs to sponsorship
and disaster relief.

2.8EXPORT/IMPORT

In Mar 2018, the total value of exports and imports of goods was US $ 505.2 Thousand an
increase of 259.559 percent from Mar 2017. Exports were valued at US $ 462.4 Thousand ,
an increase of 294.709 percent from the previous year, and imports were worth US $ 42.8
Thousand, an increase of 83.273 percent from 2017.
The Nepal exported US $ 1.3 Million and imported US $ 0.0 in the months of Jan - Mar 2018
combined ,Bosnia And Herzegovina’s exports reached  US $ 27.6 Thousand and imports US
$ 0.0, Zambia’s exports reached  US $ 2.7 Thousand and imports US $ 0.0 .

2.9COLLABORATIONS AND EXPANSION PLANS

Chennai – Daimler India Commercial Vehicles (DICV) announced a strategic tie-up

agreement with Shriram Automall India Limited (SAMIL) to bring used commercial
vehicles to the Indian CV market. The collaboration will provide a platform for customers
to exchange their used vehicle of any brand for new or used BharatBenz vehicles, PAN
India.

SAMIL is India’s leading marketplace for connecting pre-owned vehicles buyers and sellers;
making them the go-to platform for many logistics firms for procuring top-class, reliable,
and certified commercial vehicles.

Mr. Rajaram Krishnamurthy, Vice President, Marketing & Sales, Customer Service, Daimler
India Commercial Vehicles: “Our tie-up with Sriram Automall, a leader in the exchange
business will provide ease of accessibility to pre-owned BharatBenz vehicles for customers.
This tie-up will be an effective tool and a tremendous value add in delivering top class
reliable and efficient logistics solutions that meet the needs of the customer. “This strategic
tie-up will offer robust support to all commercial vehicle customers in exchanging their
used vehicles with lower turnaround time, better resale value and hassle-free processes.
The platform will provide buyers with a carefully-picked pool of used trucks that have
undergone thorough quality checks, made available via its national dealership network.

Sameer Malhotra, CEO, Shriram Automall India Limited (SAMIL) said, “We are thrilled to
get the opportunity to partner with Daimler India Commercial Vehicles, to power their
Exchange Program. We look forward to delivering BharatBenz’s superior quality and TCO
to a larger customer base and provide outstanding customer experience to BharatBenz
Truck owners for their trade-in-needs.”BharatBenz dealerships through their dedicated
“Exchange” Team can now utilize this SAMIL platform in selling customers’ used vehicles,
both BharatBenz & Other OEMs. This joint collaboration will also assist dealerships in
expanding their service reach by increasing the conversions and enabling improvement of
coverage in the dealership command area.

2.10SWOT ANALYSIS OF THE COMPANY

STRENGTHS

 One of the most valuable automotive brands in the world

 Geographically diversified revenue streams

 Successful partnership in China

 Perfect engineering and excellent driving experience

 Competence in hybrid and electric cars

 Clear strategy to meet the future challenges and trends

WEAKNESSES

 Poor automotive brand portfolio with little product differentiation

 Increasing debt levels

OPPURTUNITIES

 Fuel prices are expected to rise in the near future

 Demand for autonomous vehicles

 Weakening euro exchange rate

 Timing and frequency of new model releases

THREATS

 Increasing competition in the worldwide automotive market

 Increasing government regulations may raise the costs

 U.S. automotive market is poised to slow down or even decline

CHAPTER 3

DISCUSSION
3.1 LITERATURE REVIEW ON THE EFFECT OF HUMAN IN SOLVING CONFLICT IN AN
ORGANIZATION OF BHARAT BENZ

Conflict management strategies are the behavioral methods used to resolve conflict. These
behaviors are a consequence of both external circumstances and the individual’s own
method of interaction with people and problems, and are chosen dependent upon the
relative significance of one’s concern for self, versus concern for others. Management of
conflict is extremely important for the effective functioning of organizations and for the
personal, cultural, and social development of human beings. The manner in which the
conflict is managed typically causes more tension in the situation rather than the conflict
itself.6 Any professional who is concerned with supporting others and the organization in
changing negative conflict situations should have an objective of inventive and productive
conflict management. According to Thomas and Kilmann’s MODE instrument there are five
modes to dealing with conflict along two dimensions of behavior.The five modes are:
competing (assertive and uncooperative), collaborating (assertive and cooperative),
compromising (falls authority or influence by the use of open hostility.8 When dealing with
this type of strategy frustration, irritation, or argument may be used; and conflicting parties
may be fully removed from the situation by use of authority. The conflict could be
temporarily lessened when competing tactics are used, but no final resolution is ever
agreed upon. Competitive tactics are a “win-lose” situation, where one individual tries to
pressure the other to change.9 The Kraybill Conflict Style Inventory refers to competing as
a directing conflict management strategy. When the individual uses a directing conflict
management style there is a high focus on the agenda (conflict) and a low focus on the
relationship with the other party. The directing style has an “I win and you lose” approach.
When individuals use this style they more than likely hold some type of power over the
other party involved and are able to demand for the conflict to be resolved in their favor.
The directing approach is not always a “bad” conflict management style, it can be useful in
emergency situations when decisions need to be made fast. When this style is used by a
supervisor it gives the employee a sense of stability to know that their supervisor is
constant in their decision making.

3.2 OBJECTIVE ASSESSMENT OF THE COMPANY AND INDUSTRY

Automotive industry, all those companies and activities involved in the manufacture of
motor vehicles, including most components, such as engines and bodies, but excluding
tires, batteries, and fuel. The industry’s principal products are passenger automobiles and
light trucks, including pickups, vans, and sport utility vehicles. Commercial vehicles (i.e.,
delivery trucks and large transport trucks, often called semis), though important to the
industry, are secondary. The first car that plied on Indian roads was as early as 1897 and
the first Indian to own a car in 1901 was Jamshedji Tata. It was in 1942, before India’s
independence that Hindustan Motors manufactured the first automobile in India.
Soon after India’s independence, the Government of India tried to boost the sector by
encouraging manufacturing of automobiles. Before that, the cars were imported directly.

The automobile sector formally came into being in the year 1952 when the Government
appointed its first tariff commission with the aim of indigenizing this industry. The year
1952 also marked the introduction of passenger cars in the country. Manufacturers like
Hindustan Motors, Premier Automobiles and Standard Motors came into the limelight.
Even SUV’s started being manufactured by Mahindra and Mahindra, Bajaj, Standard
Motors, etc. Cumbersome and medium commercial vehicles were made by 7 manufacturers
which included Ashok Motors, Simpsons and Co., Premier Motors and more.  Two-wheeler
vehicles like scooters, motor bikes or mopeds were manufactured by Bajaj Auto, Escorts
Group, Royal Enfield, Automobiles Product of India, Ideal Jawa, etc.
Although steam-powered road vehicles were produced earlier, the origins of the
automotive industry are rooted in the development of the gasoline engine in the 1860s and
’70s, principally in France and Germany. By the beginning of the 20th century, German and
French manufacturers had been joined by British, Italian, and American makers.

BharatBenz is a brand of Daimler India Commercial Vehicles (DICV), itself a wholly owned

subsidiary of the German manufacturer Daimler Truck AG. The brand is known for its
trucks and buses. The headquarters of BharatBenz is at Oragadam, Chennai, India.The
“Bharat” part is symbolic for India. The launch of the BharatBenz brand was announced on
17 February 2011 at Chennai by Daimler AG Chairman Dieter Zetsche and the first
BharatBenz truck was unveiled on 4 January 2012 at the Delhi Auto Expo. The decision to
launch the brand was prompted by Daimler's determination to compete in the fast-growing
Indian truck market against existing Indian brands such as Ashok Leyland, Tata Motors and
Indian ventures of other leading global truck manufacturers like VE Commercial
Vehicles (Volvo-Eicher Motors-Joint Venture). The entire proposed truck line-up in the 9 to
49-tonne range was unveiled on 2 March 2012.

Early 2014 BharatBenz launched the tractor trailer models and a construction model
making itself a full range player in the segment above 9T category spanning across medium
and heavy-duty truck segments.In May 2015, BharatBenz inaugurated its new bus
manufacturing facility in Oragadam, Chennai and unveiled its second wave of products –
BharatBenz and Mercedes-Benz buses as well as a new range of BharatBenz trucks and
BharatBenz heavy-duty tractors. On 11 August 2016, the 50,000th truck rolled off the line
at DICV. DICV reached this milestone just four years after the first vehicle left the line and
one year after the 30,000th vehicle was produced.In January 2017, the 5000th bus chassis
was rolled out of the Daimler Buses India plant. Currently, available bus models from this
facility are Mercedes-Benz SHD 2436 (multi axle) – BSIV version, Bharat Benz & Mercedes-
Benz 9Ton. In April 2017, a new model of front engine 16ton 230hp (1623) buses was
launched in the Indian market (seater and sleeper versions).On 12 April 2021 Bharat Benz
Heavy duty truck HDT 5228T/5428T was awarded HCV Tractor-head Of The Year by
Apollo CV awards.

3.3 OBJECTIVE ASSESSMENT OF THE LITERATURES GATHERED UNDER THE EFFECT

OF HUMAN IN SOLVING CONFLICT IN AN ORGANIZATION OF BHARAT BENZ

Overall, the technologists that participated in the survey preferred a cooperating conflict
management style during the calm setting. The storm setting showed the technologists to
prefer a compromising conflict management style. The study also showed the education
level of the technologists did not have any effect on their preferred conflict management
styles. The technologists’ preferred conflict management style for the calm setting was
cooperating. On the Kraybill Conflict Style Inventory scale this relates to having a high focus
on the agenda and a high focus on the relationship with the other party involved in the
conflict. The cooperating conflict management style is synonymous with the collaborating
conflict management style from Thomas and Kilmann. The collaborating style is high on the
assertiveness dimension and high on the cooperating dimension. Both cooperating and
collaborating have “win-win” outcomes. This conflict management style is appropriate to
use when both parties must continue to work together; hence the high focus on
relationship.For the storm setting, the technologists had a more compromising conflict
management style . This style has a medium focus on the agenda and a medium focus on
the relationship with the other party.Thomas and Kilmann also refer to this style as
compromising. This style requires for both parties to reach some form of “common ground”
where both are partly satisfied. The compromising conflict management strategy can be
classified as functional conflict due to the fact that new ideas are created through the
resolution process.The education level of the technologists did not show to have any
significant effect on conflict management strategy. The findings of this study are
inconsistent with previous studies of nurses that showed the education level does play a
role in conflict management style. Most of the technologists from this survey possessed a
bachelor’s degree, which could contribute to the findings being insignificant. However,
even though the results were insignificant in education level contributing to conflict
management style, the results show that cooperating and compromising were the
preferred conflict management style of the technologists.

3.4 CONTRIBUTION

 About pricing strategy, for developing markets, such as Asia, cost-based strategy is
implemented. For developed markets, such as Europe, value-based strategy is
preferred and for Chinese market, competition-based strategy is better for
developing.
 About global market penetration, for developed countries, export only and Joint
Venture are acceptable and for developing countries, export or 100% subsidiary is
acceptable.
 Increase competencies, including product development and reduce delivery time.
Also, allocate resources, and have leadership to implement forward.
 Furthermore, the company can analyze the prospects for the market. It is necessary
to research buyer needs, preferences and expectations. Monitor new technological
developments closely to predict the future path.
CHAPTER 4

CONCLUSION
Automotive industry, all those companies and activities involved in the manufacture of
motor vehicles, including most components, such as engines and bodies, but excluding
tires, batteries, and fuel. The industry’s principal products are passenger automobiles and
light trucks, including pickups, vans, and sport utility vehicles. Commercial vehicles (i.e.,
delivery trucks and large transport trucks, often called semis), though important to the
industry, are secondary. The first car that plied on Indian roads was as early as 1897 and
the first Indian to own a car in 1901 was Jamshedji Tata. It was in 1942, before India’s
independence that Hindustan Motors manufactured the first automobile in India.
Soon after India’s independence, the Government of India tried to boost the sector by
encouraging manufacturing of automobiles. Before that, the cars were imported directly.

The automobile sector formally came into being in the year 1952 when the Government
appointed its first tariff commission with the aim of indigenizing this industry. The year
1952 also marked the introduction of passenger cars in the country. Manufacturers like
Hindustan Motors, Premier Automobiles and Standard Motors came into the limelight.
Even SUV’s started being manufactured by Mahindra and Mahindra, Bajaj, Standard
Motors, etc. Cumbersome and medium commercial vehicles were made by 7 manufacturers
which included Ashok Motors, Simpsons and Co., Premier Motors and more.  Two-wheeler
vehicles like scooters, motor bikes or mopeds were manufactured by Bajaj Auto, Escorts
Group, Royal Enfield, Automobiles Product of India, Ideal Jawa, etc.
Although steam-powered road vehicles were produced earlier, the origins of the
automotive industry are rooted in the development of the gasoline engine in the 1860s and
’70s, principally in France and Germany. By the beginning of the 20th century, German and
French manufacturers had been joined by British, Italian, and American makers.

BharatBenz is a brand of Daimler India Commercial Vehicles (DICV), itself a wholly owned

subsidiary of the German manufacturer Daimler Truck AG. The brand is known for its
trucks and buses. The headquarters of BharatBenz is at Oragadam, Chennai, India.The
“Bharat” part is symbolic for India. The launch of the BharatBenz brand was announced on
17 February 2011 at Chennai by Daimler AG Chairman Dieter Zetsche and the first
BharatBenz truck was unveiled on 4 January 2012 at the Delhi Auto Expo. The decision to
launch the brand was prompted by Daimler's determination to compete in the fast-growing
Indian truck market against existing Indian brands such as Ashok Leyland, Tata Motors and
Indian ventures of other leading global truck manufacturers like VE Commercial
Vehicles (Volvo-Eicher Motors-Joint Venture). The entire proposed truck line-up in the 9 to
49-tonne range was unveiled on 2 March 2012.

Early 2014 BharatBenz launched the tractor trailer models and a construction model
making itself a full range player in the segment above 9T category spanning across medium
and heavy-duty truck segments.In May 2015, BharatBenz inaugurated its new bus
manufacturing facility in Oragadam, Chennai and unveiled its second wave of products –
BharatBenz and Mercedes-Benz buses as well as a new range of BharatBenz trucks and
BharatBenz heavy-duty tractors. On 11 August 2016, the 50,000th truck rolled off the line
at DICV. DICV reached this milestone just four years after the first vehicle left the line and
one year after the 30,000th vehicle was produced.In January 2017, the 5000th bus chassis
was rolled out of the Daimler Buses India plant. Currently, available bus models from this
facility are Mercedes-Benz SHD 2436 (multi axle) – BSIV version, Bharat Benz & Mercedes-
Benz 9Ton. In April 2017, a new model of front engine 16ton 230hp (1623) buses was
launched in the Indian market (seater and sleeper versions).On 12 April 2021 Bharat Benz
Heavy duty truck HDT 5228T/5428T was awarded HCV Tractor-head Of The Year by
Apollo CV awards.
BIBLIOGRAPHY
 https://en.wikipedia.org/wiki/BharatBenz#:~:text=BharatBenz%20is%20a
%20brand%20of,part%20is%20symbolic%20for%20India.
 https://www.bharatbenz.com/about-us
 https://www.daimlertruck.com/products/trucks/bharatbenz/
 https://trucks.cardekho.com/en/brands/bharat-benz.html
 https://www.facebook.com/bharatbenz1/
 https://auto.economictimes.indiatimes.com/tag/bharatbenz
 https://www.quora.com/Is-Bharat-Benz-an-Indian-company
 https://trucks.tractorjunction.com/en/bharat-benz