Key Challenges in Car Carrier & Two Wheeler Transportation Contents About Mahindra Logistics Industry Outlook – Automotive / 2 Wheeler Challenges • Transport Industry • Automotive / 2 Wheeler Industry • Regulatory Way Forward – MLL Perspective Partnering with MLL Mahindra Logistics today • One of India’s leading logistics service providers with a diverse portfolio. • Wholly owned subsidiary of the Mahindra Group. • More than 1,300 crores ( over USD 250 million) revenue • More than 26 offices, in over 15 cities • More than 20,000 vehicles • More than 2,000 employees • More than 3.5 million square feet of warehouses • More than 200 corporate customers • ONE Solution……. …….. Our imperative with all customers PARTNERSHIP • Our logistics service offerings are highly diversified and always customized • We believe contract logistics to be a collaborative and constantly evolving partnership between us and our customers • We also believe in evolving our approach to meet the changing needs of various businesses • We seek partnerships with those customers to whose operations we can continuously and consistently add value Our capabilities span various logistics activities Supply Chain Consultancy Supply Chain Design Planning Optimization SOLUTIONS DESIGN Warehousing & Linefeed Process & Design Operation Automation Transportation Primary Secondary International People Logistics Solutions for our Partners Supported by INFORMATION TECHNOLOGY Our solutions span industries & verticals • Auto • FMCG Supply Chain Design Supply Chain Optimization • Telecom Primary Transportation • Cement Secondary Transportation • Retail • Engineering • Textiles & Garments Warehousing Distribution Final Processing Reverse Logistics International We manage end-to-end solutions and continue to innovate improvements to our partners value chain Global & Domestic Suppliers Finished Goods Inventory Transportation – Road, Rail, Air & Sea. Both Domestic & International In-plant stores & Production Linefeed Break Bulk & Consolidation Centers Reverse Logistics – Repairs & Returns Packing & labeling Transportation Distribution Centers Last Mile Logistics INDUSTRY OUTLOOK In Million no. Auto Industry Outlook: Automotive growth in last 4 years in the domestic market 3 2.52 1.95 2 1.55 1.55 1 0.36 0.49 0.35 0.38 0.44 0.53 0.53 0.68 0 2007-08 Three Wheelers 2008-09 2009-10 Commercial Vehicles 2010-11 Passenger Vehicles Source: Society of Indian Automobile Manufacturers Two Wheeler Industry Growth In Million no. Automobile Two Wheeler Domestic Sales in last 4 years 15 11.79 9.37 10 7.25 7.44 2007-08 2008-09 5 0 2009-10 2010-11 Source: Society of Indian Automobile Manufacturers CHALLENGES Challenges Regulatory Market (OEM) Industry Regulatory Challenges Application of CMVR Rule Increasing RTO issues Changing Rules impacting Overloading, Fines & Penalties, Legal liability GST Implementation Increasing Toll Expenses Market (OEM) Challenges Imbalanced growth across OEM’s Sectoral or Geographical shift in Automotive cluster (west becoming a strong Automobile originating market) Skewed distribution pattern during the month across OEM’s Reduced volume per delivery point Shrinking volume resulting pressure on Logistics cost Industry Challenges Increasing competition - Transporters from different industries entering automobile transportation segment Increasing Carrier Waiting, impacting TAT - reduced productivity Reducing driver population, impacting heavy asset idealing Increasing cases of Theft / Pilferage / Cash Mismanagement Increased road expenses, unaccounted road expenses, fines Putting pressure on Margin Success MANTRA – C.A.I. Collaboration Innovation Alignment Partnering with MLL • Partner with one of India’s leading logistics service providers – Large operator with transportation across segments • 2W / 3W / 4W / HCV / Farm Products / Construction Equipments • Inbound / Outbound / IUTN / Spare Parts • Volume in access of 700,000 units per annum • Opportunity to grow along with us and be part of our success story • Industry Vertical focused with interest spread across various industry segments – Automobile – FMCG & Retail – Cement / Agri / Power • Best practices, technology and process • Be part of the RISE movement !