It’s a pity editorial policy doesn’t allow un-parliamentary language. If it did, this story would be a more colourful one because Marc Llistosella (pronounced List-o-say-a) is a colourful character prone to slip often into equally colourful language. But that’s the only way he knows to be. That is also why he now has a mandate from Daimler’s headquarters at Stuttgart in Germany to put up a good fight, however bloody it gets, with Tata Motors and Ashok Leyland.
Eighty percent of all trucks sold in India are built by them. Anybody who’s tried to take this duopoly on, has until now, lost to their might. And that includes trucking majors from across the world like Volvo, MAN, and Scania. The American Navistar reckoned partnering with a local company would get it a toehold in the market, which is why it chose to partner with Mahindra. But in the two years it’s been in business, it’s managed to sell just about 1,500 vehicles.
And this market is made of fleet owners who have risen from the grassroots to create large businesses. They know how to run their trucks and make money, but they don’t care two hoots about a global or local brand. “Every MNC came in with an advanced technology perspective, but failed to deliver on the price, financing options for the buyer and point of contact, which is sales and service,” says Deepesh Rathore, managing director, IHS Automotive, a global consulting firm.
The problem is compounded, he says, by the fact that every failed attempt by an MNC adds to fear in the minds of fleet operators. You pay big money to buy a fancy truck, take the risk of switching from a Tata or Leyland and find the company has exited the market.
To put things in perspective, last year, 2.70 lakh medium and heavy commercial vehicles were lapped up by Indians. This is expected to double by 2020. It’s the kind of party nobody wants to miss, but nobody has been able to capitalise on. That these kind of explosive numbers would happen in India was obvious to Llistosella way back in 2005 when he was asked to be part of a team that would identify new markets for the company. By then, he’d moved up the ranks at Daimler, a $142 billion company, by saving the company $132 million by cutting costs and improving efficiencies.
But Llistosella likes a good fight. So the first time he got beaten up as a kid, he swore it would never happen to him again. Aged eight, he started to learn judo. By 12, he’d graduated to Shotokan karate. And at 18, he took up kickboxing, which he practices to date. “I was a street fighter in Barcelona,” he says, where his father hails from. “I know how to fight…but if you feel you’re doing the right thing, and can be proud of it, tears come into your eyes. Not when you go to a press conference and you’re asked questions about a company with big b***, lots of market share and making a lot of money.”
His bosses know that as well—that when it comes to a fight, he will put up a good one. And if things go according to his ridiculously meticulous plans, he can change the landscape of the Indian trucking business. In fact, that’s how he landed the job at Daimler many years ago. Until then, his background was a chequered one. He’d walked out of an investment banking job at CommerzBank because “they were only interested in selling their products, not making their customers rich”; he’d tried to set up a venture capital firm of his own. But that fizzled out in two years. And he finally knocked on Daimler’s doors.
The folks there could see the young man had fire in his belly. That said, they were sceptical as well. So they made him an offer: Start out in the boondocks as a salesman. If he did well, they’d hire him. Until then, he’d have to work for free. “I asked, work for free? Who do you think you are?” Llistosella recalls.
The amused folks at the other end of the table told him he ought to be thankful they were making him an offer in the first place. And that all he knew was banking; for good measure, they rubbed it in—they told him he’d make a hash of the job. And that’s why they weren’t willing to take a chance or pay him a dime. An incensed Llistosella, just 28 then, took the job, “…and in two years I sold like hell. I sold everything to everybody. You know what? They asked me to stop being a salesman and come to headquarters.”
By his own account, he hated being at the headquarters. “That wasn’t where the party was…So in 2006, it was not them who told me to do this thing in India. I said India is the next market and we have to be there.” Headquarters caved in to his relentless demands and Llistosella moved to Chennai. Daimler India Commercial Vehicles, a subsidiary wholly owned by Daimler was founded a few years later, and launched Bharat Benz last year.
Achtung Jugaad!
I’m not a nice guy
(This story appears in the 13 April, 2012 issue of Forbes India. To visit our Archives, click here.)
i m working in DICV (Daimler India Commercial Vehicle Pvt.Ltd.) it is good company.... but management it is so bad...... but i like DICV Company.... Bharatbenz Truck good Heavy Teuck it is engine powerful...and.. hight area no problem verry success full truck. and thanku.... jaikishan dewangan
on Mar 10, 2015now really tough competition for existing players...
on Dec 1, 2012excellent vehicle
on Nov 7, 2012http://www.youtube.com/watch?v=5wlvEke4MRw
on Sep 24, 2012I have worked with TATA dealer, Ashok Leyland, and Hindustan ISUZU,,,we at ISUZU did a good work by bringing the best TRUCK ever to beat both Tata and Leyland but company got closed...Yes , it is a hard job but I think Bharat Benz with their team can CRACK these problems but for the Resale value which has to be picked up and nurtured and once they get that, then, I think Bharat Benz will win...I am here to HELP the Bharat Benz team if they contact me , as I know their strengths and weakness.....GOOD day...Bharat Benz....
on Apr 27, 2012just WHERE is tata motors ? sleeping ? I can see more international trucks around in the premium truck range, than Tata. Tata can kiss their business good bye in the premium truck range. It missed a golden opportunity with buses - Volvo has completely taken over that space.
on Apr 19, 2012Its going to be a very big challenge for Bharat Benz. From what i have learnt it appears that they have done their home work well. The key is having enough touch points for the end users. Educating the market on the brand and also ensuring that the cost of ownership does not go high. One of the important parameters that indian buyers keep in mind is the availability of critical after sales support. that will be a challenge that Mercedes will need to overcome. Because with Ashok Leyland and TATA even a road side workshop can provide the technical support and spares. The critically important thing this time around is that Mercedes has deliberately designed the truck in India and for India and they have worked to give the truck an Indian flavor. They have gone about testing the product without making too much noise and we understand that the feed back from several users has been extremely positive. Its time the Indian commercial vehicle industry is unshackled from the clutches of poor quality, low efficiency, outdated technology, notoriously unsafe products. I am sure we all have seen the trucks overloaded and struggling on the Indian highways. Its time we treated the truckers as humans and provide them with better products, products training and focus on safety. Best wishes to Mercedes.
on Apr 18, 2012This one seems to be a good fighter. The article does not say how they have accounted for the roads and the unstated use of the vehicle. The marketing team knows its job and has prepared well for it. One thing they will do well is by staying away from JUGAAD. Best of Luck to all and may it be the harbinger of transportation revolution.
on Apr 17, 2012There are other carcasses too, which you have missed. Around the time DCM Toyota came about in 1983, three other companies rolled out their LCVs. They were Eicher Mitsubishi, Swaraj Mazda and Allwyn Nissan. All of them have perished.
on Apr 16, 2012I do not think the primary reason for frequent breakdowns of truck, or need for spare parts and repair shop every few miles is poor quality. True, the quality might not be world class, but they are not substandard either. Some of the primary reasons for frequent breakdown and repair facilities everywhere are: 1. In India, trucks rarely carry load as per their specified capacity. Normally trucks are loaded upto 2 or even 3 times their specified capacity. Needless to say, this adversely affects trucks' performance and wear and tear. 2. Poor road conditions: Very few roads in India are good and poor roads greatly contribute to wear and tear of goods carrying vehicles. 3. Infrequent maintenance: Trucks are rarely serviced on schedule and are made to ply for long stretches of time without regular service. 4. Trucks are also rarely retired from road when they ought to be. Availability of cheap parts and service centers enables transporters to keep plying trucks that are long past the retirement age. Unless these points are considered by Daimler, I think we are in for another carcass in the trucking industry.
on Apr 16, 2012Good points Gagan. Daimler has incorporated over loading of trucks plus poor infrastructure in India in their product strategy. They understand that this market is very different from any other global market that they have been in. In fact at the Chennai test track Daimler's trucks are being tested along with trucks from competition. The testing has happened across several parameters like adulterated fuel and infrequent maintenance...you name it. It is pretty impressive how they are checking everything that goes into their truck and comparing it against competition. Of course price and ease of availability of spare parts is something that's critical. A large transporter I spoke with said that he buys Tata trucks because there are several replacement parts manufacturers that he has access to all over India. His trucks rarely go back to the Tata network for service. Daimler doesn't have that support network (if you can call it that) today. Which is one big reason Daimler is betting on a robust product to crack the market.
on Apr 16, 2012Mr Llistosella , the Tata's will go to any extent to prevent the erosion. Tata is not India. But we are forced to swallow their god damn things. Another major sector where the Tata's have their majority share is the Govt Sector. But it mostly consist of buses not trucks. The Tata's Manufacture the chasis which can be ideally used as a truck and bus. Thats their another jugaad(hindi for trick) .They bribe the polititians and the beuraucrats to sell their Chasis to various state road transport corporations . Even after this much extensive research on the Indian market , i feel you still need to know a lot on how deeply the markets are manipulated by the Tata's . On the outside the name Tata is synonymous to patriotism and Hard work. But their hardwork lies in finding new ways out to sell their cheap( i mean less quality) stuff to the market and fool the Indian public.
on Apr 14, 2012You dont know exactly what tata's policy are. its company based on ethics. The 60% of the profits of the company go to a trust which works for the welfare of the people of India. Not only Tata Motors; any company of the tata group has not been found guilty in any scams. Check the details of 26/11 compensation given by Mr. Ratan Tata to the victims of the attacks. Even the Local Thelewala got the compensation who stood in Front of the Taj. Tata means 'Trust'. Think twice before posting such things. They are the Torch bearers of innovation in India with Nano and SCV's like Ace which currently rules the mini truck segment. For the buses part it is the Govt. who decides what facilities to be provided at a prescribed cost. If they were with the Govt, cheating on issues then they wouldn't had been moved from Singur region.
on Apr 20, 2012The Issue is about Quality and value for money for the customer. Can you see any improvements to TATA 407 trucks so far. Listen to its silencer noice and see the dark fumes from them. Look at brand new TATA Nano\'s rear, when it accelerates you could see the silencer moving up and vibrating. Look at the dark fumes from the Marcopolo buses in India. Have you ever thought, why long distance bus drivers prefer Volvo or Ashok Leyland. Watch out on the streets to see yourself the quality of TATA products. TATA motors should to improve quality, to give comfortable and peaceful life to the drivers, owners and others on the Indian roads.
on Sep 27, 2012It is very important to have a head like Mr Llistosella. He seems to have the clearest understanding of what he is dealing with and not just doing what the headquarters asks him to do. He knows what he is up against and what he needs to do to compete with the mighty competitors in the truck vehicles segment. With a person like him guiding the operations and strategies, I think Bharat Benz Operation will be very successful. Wish they are highly successful in India. All the best with your sales.
on Apr 13, 2012Thanks for the very detailed and insightful article. Being an industry insider, I can confidently say that Marc is doing all the right things and he has also diligently uncovered the secrets of the Indian trucking industry. A man who is unafraid of getting hands dirty and willing to fight it out in the streets (where his competition will be found wanting if it comes to!) surely is on the right track and deserves to win. He has the right men for the job too. Only thing he needs to be careful of is the inertia of the market.
on Apr 13, 2012Mr Llistosella, I like your attitude. India needs more business Leaders like you...Good luck
on Apr 12, 2012You mentioned in the article that 80% of the Indian market is dominated by tata and ashok leyland but there is no mention of ashok leyland anywhere else in the article.
on Apr 12, 2012Good read, but it's still tough to believe they'll be able to take on Tata and Leyland. It'll be interesting to see what happens.
on Apr 11, 2012This guy is a better street fighter rather than head honcho.
on Apr 11, 2012Daimler indeed seems to have done a lot of Homework before venturing into TATA-land..all the best Mr.Llistosella!!..
on Apr 11, 2012No matter how much DICV talks about taking the fight to TML and ALL, their production capacity shows that they are being realistic. In the 7.5-49 tonne, Tata sold over 2 lakh vehicles in the 2011-12 and Ashok Leyland sold 95000. So at a production capacity of 32000 units, they are being pretty realistic.
on Apr 10, 2012Whichever phase of growth, the Indian CV companies are in look out for collaborating with international players for technology/engineering (be it German/French/americal/japanese) to compete in domestic market. So, it is always, Foreign truck makers Vs Foreign Truck maker!
on Apr 10, 2012