OPL - League

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 !