Problems

Bharat Benz’s Tall Claims…

Power of Understanding

Power of Excellence

Lowest Total Cost of Ownership

10 % more fuel Economy than Competition

Just after One month of delivery, Facts' shows

Such Claims are falling apart ?????
Power of Understanding ?
Power of Understanding (Indian Conditions)??

Foot rest broke with in One month of Operation

Questions BB’s Power of Understanding Indian Conditions/Operations !!!
Power of Understanding (Indian Conditions)??

Foot rest broke with in One month of Operation

Questions BB’s Power of Understanding Indian Conditions/Operations !!!
Power of Understanding (Indian Conditions)??

Cabin Cracks due to vibrations

& minor dents…

Such Conditions are very common

in Construction Site conditions in India…
Seriously Questions Reliability of the Product
& BB’s Understanding of Indian Conditions !!!
Power of Understanding (Indian Conditions)??

Head Lamp breakage due to

vibrations & minor dents…
Power of Understanding (Indian Conditions)??

Tail Lamp breakage due to vibrations & minor dents…

Power of Excellence ??
Power of Excellence ??

Bogie Suspension issues –

Suspension rubbing Chassis frame leading to
Alignment and Tyre wear issues

Issues reported in maximum

Vehicles of Ketan Construction
- Rajkot
Power of Excellence ??

Brake Drums /Hub heating –

Reported in all 7 Nos BB 2523 Tippers of
Balaji Earthmovers

Due to Hub heating/ Brake Liners rubbing

issues leading to Tyre getting softer and Tyre
wear/repeated puncture issues frequently
reported

Vehicle KMPL is also getting detoriated

almost 0.25-0.3 less than earlier KMPLs
Power of Excellence ??

Brake Drum heating –

Bharat Benz team has replaced all Brake
Actuators of Front and rear as well connecting
Hoses.

However still Heating issue is not resolved

 Issues in Bharat Benz Trucks
Premature Abnormal Tyre Wear M/s. BD Dhalla (Mumbai)- 2 nos – Both @ 30000 kms
& M/s. Narender (Hoskote) – 1 Vehicle @ 40000 kms

Tyre Life reported in first 5 vehicles which have just crossed 40000 kms
Issues in Bharat Benz Trucks

 Engine Seizure in New BB 2523.T within 10000 kms of

Operations running on Kolhapur-Bangalore route

 Another Case of Engine failure due to Vehicle meeting with

an accident – Engine was replaced after a month ? If this is
the speed of response to a Fleet Owner, Can a retail
customer expect anything better ?

 Lift axle not lifting in Two BB 3123.T vehicles

 Hub Leakage reported in BB 2523 Tippers

Issues in Bharat Benz Trucks

 Viscous Fan Clutch not engaging – in 23 Vehicles – This is a consequential

failure caused due to Engine Overheating – Retro done for all 23 vehicles

 De-Aeration Tank (next to Radiator) Crack – in 42 Vehicles – This has led

to Coolant Leakage – Retro replacement done for all 42 vehicles

 ECU Instrument Cluster Software malfunctioning – in 23 vehicles – Display

of Erroneous readings – Bharat Benz had to re-load the software in all 23
vehicles to avoid potential failure & replacement of the entire INS Cluster

 Fuel Tank Bracket Crack – in 23 Vehicles – Retro-replacement done for all

vehicles – Potential failure – Bracket failure will lead to the fuel tank
giving way & may lead to sparking & vehicle catching fire
Issues in Bharat Benz Trucks

 Alternator Retro-Replacement done in all 44 Vehicles – Alternator failures

ave led to pre-mature battery discharge leading to Starting & Cranking
Problems

 Brake Chamber adaptor & Poly hose failures in all 44 vehicles – This
failure has led to ineffective braking. Retro done on all 44 vehicls
10 % more fuel Economy than Competition ??
Fuel Economy
Mileage feedback of Ketan Construction Tippers

Avg KMPL reported 2 – 2.4 KMPL vs LPK 2518 3-3.25

For similar load and road condition operations..
Fuel Economy
Mileage feedback of Balaji Earthmovers
Application – Aggregate movement
from Crusher to Customer
Lead – 20-40 Kms
Load – 15 T (Rated load)
Operation -- 20 Hrs

Avg KMPL reported

BB 2523 - 2.75
LPK 2518 - 3.0 – 3.2
For similar load and road condition operations..
Fuel Economy
Mileage Feedback-20 nos. BB 2523 Trucks
Sr # VEHICLE NO OPEN KM CLOSE KM Tot KM Diesel Qty KMPL
1 KA 25/D2485 853 8250 7397 2020 3.66
2 KA 25/D2486 976 5544 4568 1314 3.47
3 KA 25/D2487 843 6007 5164 1310 3.94
4 KA 25/D2488 846 4746 3900 1101 3.54
5 KA 25/D2489 840 5936 5096 1433 3.55
6 KA 25/D2580 893 1924 1031 311 3.31
7 KA 25/D2581 834 1974 1140 330 3.45
8 KA 25/D2582 851 2862 2011 579 3.47
9 KA 25/D2583 846 1667 821 176 4.66
10 KA 25/D2584 826 1511 685 142 4.82
11 KA 25/D2417 855 8749 7894 2280 3.46
12 KA 25/D2418 912 7145 6233 1818 3.42
13 KA 25/D2419 958 5452 4494 1378 3.26
14 KA 25/D2420 863 8272 7409 2130 3.47
15 KA 25/D2421 1120 8363 7243 2361 3.06
16 KA 25/D2233 3745 10556 6811 1876 3.63
17 KA 25/D2234 978 11476 10498 3081 3.4
18 KA 25/D2235 1038 9680 8642 2307 3.74
19 KA 25/D2236 881 7635 6754 1821 3.7
20 KA 25/D2237 907 11455 10548 2846 3.7

Average Mileage = 3.64 kmpl vs Tata 2518 @ 3.7 kmpl

Lowest Total Cost of Ownership ??
 Payload
TATA LPK 2518 BB 2523

Tata BB
GVW 25000 25000 Difference in Payload – 1.2 T
Kerb Wt 10000 11200 (very important for payload sensitive markets like
Maharastra, Goa,Gj, Orissa,Chattisgarh etc
Payload 15000 13800
Diff 1200 1.2 T = 0.75 Cum additional load
1.2 T = 30 Cft additional load/Trip
Total Cost of Ownership

 Fuel Efficiency BB vs TML – almost 0.25 – 0.3 kmpl more than BB

 Kerb Weight difference = 1.2 Tons
 Engine Oil Sump Capacity : BB – 26.3L vs Tata – 14.3 L
 Very Expensive Spare parts rates in BB vs TML

Spare parts cost TML vs BB

Items BB 2523R TATA 2518 Difference % Costlier
Diesel Filter 1268 582 686 118%
Air Filter 2053 1790 263 15%
Fan belt 515 413 102 25%
Oil filter catriage 890 790 100 13%
Clutch plate 8100 7085 1015 14%
Pressure plate 15530 11710 3820 33%
Brake liner ( Frt 4 pice) 2584 [1 set] 1175 1409 120%
Brake liner ( Rr 4 pice) 2930 (1 set) 1360 1570 115%
Viscous Fan 18320 16518 1802 11%
Operating Economics Case Study – Aggregate movement (Mumbai) rated load
Cost Parameters LPK 2518 BB 2523 Data Parameters LPK 2518 BB 2523

Initial cost per vehicle 2,415,000 2,577,000 Body Size CuM 14 16

Finance amount (Rs.) 2,173,500 2,319,300 Stone Density 2 2
REVENUE CALCULATIONS Fill ratio 95% 95%
Freight rate/ton primary load 200 200 Primary Load Carried in Tons 15.0 13.8
No of trips per year 1,210 1,210 Lead 30 30
Total Tons production per year 18,144 16,692
Total freight earned per year in Rs. 3,628,800 3,338,496 Total distance per trip 60 60
Trip time in Min 300 300
FIXED COSTS PER YEAR No of working hours in a day 18 18
Crew salary per year 120,000 180,000 No of trips per day 4 4
Insurance, taxes and others 96,600 103,080 No of working days in a month 28 28
Admin expenses - 120,750 128,850 No of trips per month 101 101
Total Fixed costs per year 337350 411930 Total Load carried 15.0 13.8
RUNNING COSTS PER YEAR Operative months/Yr 12 12
Pay Load Carried in Tons per annum 18144 16692 Type of Tyres Bias Ply Bias Ply
Distance per month in Km 6048 6048 Cost of one new tyre in Rs 18,000 20,000
Distance per year in km 72576 72576 Front axle tyre life in Kms 45,000 40,000
Diesel Mileage in Kmpl 3.2 2.8 Drive axle tyre life in Kms 45,000 40,000
Tyre cost per km in Rs 4.0 5.0 Tandem axle tyre life in Kms 45,000 40,000
Fuel cost in Rs/year 1134000 1319564 Cost of maintenance per month in Rs 10,000 14,000
Tyre cost in Rs/year 290304 362880 Diesel consumption kmpl 3.2 2.8
Maintenance cost in Rs/year 120000 168000 Fuel price in Rs 50 50
Total Running Cost in Rs/year 1544304 1850444
Finance Costs Per Year (EMI) 545,766 582,376 Finance Data
TOTAL OPERATING COSTS PER YEAR 2,090,070 2,432,820 Funding amount in % age 90% 90%
Total operating cost per Ton 115.2 145.7 Tenure in years 4.0 4.0
Total operating cost per ton-km in Rs Moratarium period in months 1.0 1.0
OPERATING PROFIT PER YEAR 1,538,730 905,676 Tenure in months 47 47
Increase in operating profit per year vs Fixed cost details
633,054
Others Vehicle price in Rs 2415000 2577000
Number of years 4 Body Price in Rs - -
Total increase in operating profit for
five years 2,532,216 Finance charges (flat rate) in % age 11.0% 11.0%
Additional Information, if any: Crew Salary per month in Rs 10,000 15,000
Revenue Data
Revinue / Ton 200 200
Revenue per trip 3,000 2,760
Revenue per month 302,400 278,208
Total Annual revenue 3,628,800 3,338,496
 Operating Economics Case Study – Aggregate movement (Mumbai) rated load

Cost Parameters Tata 2518 BB 2523 Remarks

Initial cost per vehicle 24,15,000 25,77,000
Payload 15.0 Tons 13.8 Tons 1200 Kgs Payload advantage
Avg distance per Day 300 300 Both shifts
Annual distance 72,000 72,000
Total Operating Cost/Ton 115.2 145.7 27% more Operating Cost in BB
Fuel cost - Annual 11,34,000 13,19,564 16% more expensive
Operating profit - - Annual 15,38,730 18,50,444 Extra Profit of Rs.4 - 6 L per year
RESALE VALUE Best In the Industry ???
Problems