By K. GopalakrishnanAt 60, Ashok Leyland is getting younger and a lot more aggressive. Winds of change are sweeping across the company, and this is quite clear to one who visits the Tech Centre built on the outskirts of Chennai. A team of 600 young engineers are working on the next generation of products which Ashok Leyland plans to launch not just for the Indian market but for the developing and even developed global markets. Christened Unitruck, the all-new full range truck platform will be progressively introduced from 2010.
Mr. R. Seshasayee, Managing Director, said: “The Unitruck range reflects our global ambitions. With higher power-to-weight ratio, superior cab ergonomics and trim, the trucks will conform to European standards, and will spearhead our entry into developed markets, with competitive advantages in costs. It will also answer evolving needs of the domestic market as they gallop towards international benchmarks, thanks to the rapid infrastructural development”.
As part of the Unitruck program, Ashok Leyland is developing a completely new range of trucks, engines and cabins. The name Unitruck indicates that it will have universality of applications, addressing diverse market and customer groups. The completely new vehicle platform is capable of being built in a modular fashion. The new truck range will cover vehicles from 16 to 49 tonne GCW.
Mr. Seshasayee observes: “For the first time, I would like to say that our horizons are widened, and we believe therefore that with the new range of trucks we will be able to address much larger developing and developed markets. The new range of on and off-highway platform can create variants to meet different geographies, road / load conditions, different applications and legislative requirements”. The new range of trucks will start rolling out from 2010 in a progressive fashion, initially addressing the requirements of major customer and application groups within India and second hemisphere markets and will eventually be sold even in developed markets. The drive train will feature a range of gear boxes, with cost-effective automatic / automated manual transmission as options on some models. Coupled with rear axles of different ratios, vehicle performance and fuel efficiency can be enhanced to suit different duty cycles.
Ashok Leyland has also developed a new series of engines called the Neptune Series, which will succeed the successful H Series. The new family of 6-cylinder inline engines is code-named Neptune of modular capacity from 4.7 litre to 8 litre - BS3 and BS4 / Euro IV compliant and protected for Euro-V, with cooled EGR and SCR options.
Cab programme
The third important AL initiative is its cab programme. “The cabs in India are vastly different from what are you see in western markets. The company recognises the fact that the Indian market is graduating itself to the next level, and it won’t be long before we get international standards of cabin features coming into India”, says Mr. Seshasayee.
The company is currently offering the Newgen cabs on its tippers and tractor trailers. The Unitruck range will feature the Newgen cabs initially but will be replaced by the Nextgen range of modular cabs. These new cabs will come in multiple options of widths, heights, lengths and feature levels.
The weight-optimised frame assemblies are entirely modular and can cater to all model variants, offering extreme flexibility to accommodate aggregate options. The Unitruck will form the base for offering fully-built, ready-to-use trucks. A high level of electronics will manage the vital aggregates, for easy diagnostics, improved operating efficiency and fleet management.
The Managing Director further says: “We are looking well into the future with the new range of trucks to be powered by the new range of engines. We also want to ensure that these vehicles and engines will have define a new superior performance point. The new platform of vehicles and engines will help us in launching our vehicles in market in which we are not present at this point. These trucks will be comparable to the best in class vehicle available in those markets and at a price point which is significantly lower”.
Apart from broadening and widening of its products, the company is also looking at its international operations far more energetically than in the past. The company is expanding its footprint outside India with acquisition of Czech truck manufacturer Avia and setting up of a new bus plant at Ras Al Khaimah. The company plans to broaden its presence in the second hemisphere markets by introduction of new trucks and buses.
In the domestic market, Ashok Leyland plans to expand its product range to include the light commercial vehicles as well. For this the company has signed a JV with Nissan for manufacturing LCVs. With the addition of products from the Nissan JV, the company will have a complete range of products to offer from 1 tonne plus payload right upto the 49 tonne GCW vehicle. The Nissan JV will also include small buses which will add to the medium and heavy duty buses in which Ashok Leyland enjoys market leadership.
Albonair
Recently Ashok Leyland floated a new company in Germany called Albonair. The objective is to develop at new price performance point in the after-treatment product specifically on SCR technology which is required for Euro 4 and Euro 5 engines. Albonair will develop products and solutions not just for Ashok Leyland alone but it will develop products for other OEMs worldwide and will eventually also look at development of new products across the globe for emission treatment.
“In the coming years this project will offer the group the expertise to develop cutting edge technology particularly focussed on emission reduction and safety enhancement as well as electronic system integration capabilities”, says Mr. Seshasayee.
Albonair will play a very important part in the development of SCR technology for the new Neptune range of engines.
Ashok Leyland is also working quite seriously on the construction equipment business. The company will announce its plans for this segment in the next couple of months.
“This is the 60th year of Ashok Leyland, and we are committing ourselves to build our global presence through competitiveness and by building technology through our own competence”, adds Mr. Seshasayee.
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UNITRUCK - Ashok Leyland plans global truck platform by 2010
Ashok Leyland R&D Centre thrust on global technology
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Marking its 60th year celebrations, Ashok Leyland has dedicated its Research and Development Centre which has been set up on the outskirts of Chennai. Ashok Leyland has set a clear mission to offer world-class technology products that is relevant and affordable to Indian and global markets.
The company has undergone a lot of restructuring and re-engineering, particularly in the last five years. From under 30,000 vehicles sold in 2001-02 to over 84,000 vehicles in 2007-08, Ashok Leyland has registered a steady growth year on year and has aggressive growth plans for the future. To enable this growth agenda the company is strengthening its in-house R&D capabilities through higher investments in infrastructure and manpower.
The R&D centre has state-of-the-art facilities, including the six-poster indoor vehicle test facility and the transient cycle engine dynamometer, both being the first of their kind in the Indian commercial vehicle industry.
Ashok Leyland has always been in the forefront of innovation and product development, by introducing technologies and products that have gone on to become industry norms. All this has been achieved through vigorous in-house research and development and by tying up with international technology leaders.
All new vehicles and critical components developed, both by the company and by its vendors, undergo severe endurance and quality tests before they are validated and certified. The technical centre has set up a component testing lab wherein performance and static tests are conducted on all components starting from engine, axles, suspension to seating systems. For cabins - occupant safety test, vibration and crash tests are conducted.
The 6 poster is the first-ever such full vehicle test facility in India for multi-axle vehicles. Used for accelerated test of the complete vehicle for structural fatigue, it can simulate road surfaces recorded anywhere in the world and reduce the product development cycle time.
Apart from testing of components and the vehicle through equipments, rigorous tests are carried out on a comprehensive test track facility (where cobble-stones are calibrated and reset periodically), that replicate the most treacherous landscapes. Vehicle ruggedness and longevity are a prime customer concern, as they directly impact earnings.
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With its own comprehensive R&D base, strengthened by collaborations with global technology leaders, Ashok Leyland has established a tradition of technological leadership and a strong reputation for product reliability. The history of the company has been punctuated by a number of technological innovations which have since become industry norms.
Ashok Leyland was the first to introduce three-axled trucks, full-air brakes and a host of innovations like the rear-engine and articulated buses in India, the country’s first CNG bus and the first Hybrid Electric Vehicle.
Ashok Leyland has been increasing its spend on R&D. From Rs. 50 crores five years back, the company invested Rs. 230 crores on R&D and product development last year (2007-08). "The role of R&D is central to fulfilling the company-wide commitment to total customer satisfaction", states Mr. R. Seshasayee, Managing Director, and adds that the increased infrastructural and financial support reflects the company's determination to become self-reliant in R&D.
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One of the pioneering efforts by the R&D team is the low-cost semi low-floor bus with front engine developed by Ashok Leyland for State transport corporations like BEST of Mumbai and MTC of Chennai. The world over, low-floor buses have rear-mounted engines. But that adds to both capital and operating costs and does not meet the requirement of transport corporations. The challenge was to retain the engine in front and yet lower the floor height. The ingenious design met this challenge, with a floor height of 860mm – with one step less to climb.
The combination of semi-low floor and front engine is unique and rather difficult to achieve, which Ashok Leyland engineers have done successfully. It is an inexpensive solution that has enhanced both customer comfort and operational efficiency.
Another pioneering effort was the ibus, a feature-filled, low-floor concept bus for the metros. Ashok Leyland created a Cross Functional Team (CFT) comprising 25 engineers from its Young Executive Forum (YEF) and the team was behind the success of the iBUS, which has received overwhelming response.
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The most important factor for the success of the Tech Centre is its young team of engineers. Currently it has over 600 engineers which will grow to 1,200 in the next couple of years. Almost 75% of the total workforce are less than 25 years of age.
Says Mr. R.R.G Menon, Executive Director – Product Development, Ashok Leyland: “We have a very young and dynamic team and we have provided all the necessary tools and infrastructure for testing and have also been working with various technical consultants to build up the core skills. We want to make the technical centre the best place to work”.
At 60, Ashok Leyland is going through a period of transformation and aspiring to become a global auto major. The company is working on many new projects, including the JVs with Nissan for LCVs, with Continental for Telematics, Alteams for high pressure die castings and the recently formed Albonair for after-treatment solutions. The R&D centre will play a very crucial role in incorporating all these technologies into Ashok Leyland's future products.
India-made Ape 3-wheeler presented to Pope
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Piaggio Group’s Indian subsidiary has now emerged as the market leader in the three-wheeler segment in the domestic market. Piaggio already has more than six lakh satisfied Ape customers in India today. The vehicles are produced at the manufacturing facilities in Italy and India (Baramati, near Pune). The Ape three-wheeler now enjoys widespread popularity in Europe too.
Mr. Chopra apprised His Holiness of the activities of PVPL and its contribution not only in providing employment opportunities to a few thousand people but also offering social assistance to the poor and needy.
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Aston University honours Ravi Kant
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The Honorary DSc was conferred on Mr. Ravi Kant by Sir Michael Bett, Aston University’s Chancellor, at a special ceremony at the Birmingham Town Hall, in the presence of Professor Julia King, senior members of the University and special guests.
Mr. Ravi Kant is a distinguished alumnus of Aston University where he did his Masters in Management in Industry after graduating from the Indian Institute of Technology, Kharagpur.
Commercial vehicles still on course for growth worldwide
The world’s most important mobility trade fair, the 62nd IAA Commercial Vehicles in Hanover, from September 25 to October 2, will set new records for the number of exhibitors and countries represented as well as the amount of exhibition space occupied, according to Matthias Wissmann, President of the German Association of the Automotive Industry (VDA).
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Speaking to journalists from all over Europe at the VDA’s International Press Workshop on commercial vehicles in Frankfurt, Wissmann said the number of exhibitors would be around 2,000, up by one quarter over the previous record set at IAA in 2006. The total exhibition space will be 2,75,000 sq. m., 10 per cent more than it was two years ago. So IAA is impressively emphasizing its leading position among the world’s mobility trade fairs.
Organized by VDA, the fair will again be the ideal platform for exhibitors and professional visitors to initiate business and conclude contracts. Wissmann stressed: “There is no other commercial vehicle trade fair with more innovations or more vehicle presentations.”
Furthermore, this IAA will address comprehensively the questions of sustainable mobility and transport efficiency. The IAA's headline is “Commercial Vehicles: On the move for everyone.”
Wissmann said: “We want this to underscore again the essential role played by commercial vehicles in delivering people's everyday supplies and in enabling business to function. All of us should consider that having fresh vegetables in the supermarket, for example, requires the use of trucks, even if some motorists don't like the trucks when they are on the freeways.”
However, trucks will “not be able to move all our freight traffic on their own” which, according to forecasts, will increase by 50 per cent in Germany and Europe in the next 15 years. He said: “All modes of transport are going to be needed – trucks, railroads and inland waterways. The trench warfare between them is now finally a thing of the past, and each one should exhaust its potentials, both individually and in combination. There is enough transport available for everyone.”
But it is also clear that owing to their flexibility trucks cannot be replaced by other modes of transport in many applications. The same is true of buses in local public transport as there are no alternatives, especially in rural areas. For longer journeys buses have proved their worth over many years and are the Germans' third most popular means of travel, after cars and airplanes.
Wissmann emphasized that commercial vehicles would make a contribution to the sustainability of the transport systems and thus also to CO2 reduction. The important thing here is not only the most advanced vehicle technology, but optimizing the use of vehicles, anticipatory driving and, above all, the urgently needed investments in the traffic infrastructure.
Emissions
CO2 emissions from German road freight traffic per tonne km were reduced by around one-third in the period from 1991 and 2004 alone. There is more potential available, so that by 2025 another reduction of one-third is expected. The CO2 output from coaches is only somewhat over 30 grams per person km making them the “most climate-friendly mode of transport” today.
To further improve the CO2-efficiency of commercial vehicles manufacturers are working on optimizing the conventional diesel powertrain and transmission, reducing rolling resistance and the further development of hybrid technology and CNG propulsion.
Wissmann remarked that commercial vehicles already have a high level of passive safety. The priority now is to improve active safety with the aim of avoiding accidents altogether. ESP alone could reduce the total number of serious truck accidents by around 10 per cent. Equipping the truck fleet with distance-regulated ACC could bring down the number of serious rear-end truck collisions on the freeways by up to 70 per cent, lane departure warning systems could prevent about one-half of the accidents in which vehicles leave the carriageway.
However, not enough vehicles have such systems yet, and the equipment now available is not being used frequently enough. In the VDA’s “Safety Truck” initiative the manufacturers and their partners are therefore making a joint attempt to improve the rates of installation by offering a safety package at an affordable price in combination with discounts on vehicle insurance. This initiative could gain extra impetus if the policy-makers were to introduce appropriate incentives. One starting point could be the 600 million euro package that was pledged as compensation to the freight transport business when the truck toll was introduced.
Wissmann appealed for sustainable expansion of the transport infrastructure: “It is no help at all if vehicles become more and more economical, but consume more and more fuel because they get stuck in congestion and slow-moving traffic.”
He welcomed the planned 300 million euro increase in investments in trunk roads for the coming year, but added, “however, we have a marked concurrent rise in the truck toll, which will bring over one billion euro extra into the public coffers in the coming year alone.”
Under the new finance plan, investments in trunk roads will fall back to below today’s levels as early as 2011, despite the toll revenues pouring in.
Wissmann underscored: “We urgently need to remove the toll revenues from the ‘federal budget shunting grounds’ and allocate them directly to a trunk road company.” This is the only way to ensure the urgently needed investments in trunk roads at a sufficient level on an ongoing basis.
Hike in costs
The planned increase in the German truck toll will lead to a tangible hike in the costs of transport and logistics. The European Commission's plans for incorporating environmental and congestion costs in the toll – without any offsetting of existing taxes and levies – would cause additional “cost burdens.”
Wissmann emphasized: “The avalanche of costs currently rolling towards the freight transport industry owing to the high diesel prices and the new general political conditions will not remain without effects on the commercial vehicle market.”
The costs of using a truck have risen by 12,000 euro within one year just because of the higher diesel prices. The industry sees around 3,000 forwarding companies in Germany at risk of going bankrupt as a result of this increase in the price of diesel. “Therefore the policy-makers should reconsider whether they have really chosen the right path for increasing Europe's competitiveness as intended in the Lisbon Strategy, with more and more new costs on trucks.”
A growth industry
In a global view the commercial vehicle industry is a growth industry. In 2007 production rose, for the sixth year in succession, by six per cent to 11.7 million units. The production sites in Asia and Central and Eastern Europe are becoming ever more important. The commercial vehicle market in India, for example, has trebled in size over the last five years. And global commercial vehicle production is expected to grow in the current year, Wissmann declared.
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With the exception of North America and Japan, the international commercial vehicle markets are still in good shape. In the US the weak development of the previous year, triggered by the anticipation of stricter emissions regulations, continued into the initial months of 2008. Sales of medium-weight vehicles fell by 19 per cent in the first half-year, while sales of heavy vehicles in Class 8 were down by 25 per cent.
However, in the second half of 2008 and in the coming year we can expect better commercial vehicle sales again – not least owing to the further tightening of emissions regulations in 2010.
The heavy commercial vehicle market in China expanded by 37 per cent up to May and therefore has a rate of growth only just under that seen last year. Russia's market for heavy commercial vehicles, which grew by 48 per cent in 2007, will expand by 14 per cent in the current year, while the market for heavy trucks in the Mercosur states has expanded by 32 per cent so far this year.
In the new EU member-States sales up to May this year were up by 17 per cent. In Western Europe new registrations in the segment over 6 t have gone up by 12 per cent since the beginning of the year. In the second half of this year a normalization in sales and with it a rise of two per cent is expected in the heavy classes.
Sales of two million units in the van segment may be slightly below the previous year's level, but they are still more than 30 per cent above the average of recent years. The heavy segment expects sales exceeding 350,000 commercial vehicles, which will be a new record.
Wissmann further emphasized: “The healthy position of the German manufacturers in the growth centers of Central and Eastern Europe and the German group brands' attractive range of models have ensured market successes in an environment where industry is developing dynamically.”
The value of exported commercial vehicles has risen by an average of 14 per cent in each of the last two years. And the stable development has continued in the initial months of this year. For example, the German manufacturers were able to participate fully in the strong commercial vehicle business and push up their exports by 20 per cent in the first half-year.
Wissmann said the dynamic economic development in Germany has now slackened off somewhat following the longest-ever phase of strong expansion. But industry and the construction business still support overall demand, and the need for transport will continue to grow in the medium and long term.
On the domestic market the German commercial vehicle business has now entered the long-awaited period of normalization. In the first half of 2008, 170,000 commercial vehicles were sold, i.e., five per cent more than one year ago. This growth is due to the van segment (+9 per cent), whereas new registrations of heavy trucks fell slightly by three per cent to about 50,000 vehicles.
In 2008 as a whole new registrations in this weight class are expected to be slightly below the value recorded in the very strong preceding year, but should still exceed the average volume of the last 15 years by around 20 per cent. Total sales of vans should actually rise again. However, the trends in fuel costs and the politically motivated additional costs could put the brakes on rather more firmly.
Thanks to the strong foreign business, in the first half of this year more vehicles rolled off German production lines than ever before. Van production went up by another 15 per cent to 168,000 units, and in commercial vehicles over 6 t production expanded by nine per cent to 106,000 units.
According to Wissmann, the healthy economic situation is also noticeable in employment. In April the German automotive industry employed roughly 756,000 people, i.e., 15,500 more than it did one year before. This growth is especially due to the commercial vehicle business, where the number of employees has increased in the last 12 months by over 9,000 to 217,000.
Foreign production by the German van manufacturers climbed in the first five months of this year by 17 per cent to 129,600 units, with the highest growth rates in Central and Eastern Europe (+25 per cent) and Latin America (+30 per cent). In the segment over 6 t foreign production was up by three per cent to 153,000 units. Apart from North America, where production was reduced, foreign production of heavy commercial vehicles rose by a whole 25 per cent.
The German bus manufacturers increased their domestic production by seven per cent in the first six months of the year. This growth was fed by the rising domestic demand. New registrations were up by 13 per cent, while exports fell slightly by three per cent.
The German manufacturers now build nine out of 10 buses in other countries. In the first four months of 2008 they produced 25,400 vehicles, 14 per cent more than they did one year ago. Bus production was expanded by almost a quarter in Latin America and by 13 per cent in Europe.
The German trailer and body industry is also entering a phase of normalization after the boom of recent years. Yet sales remain at a high level. Up to May both domestic and foreign turnover had risen by 17 per cent. More than 143,000 trailers have been sold on the domestic market since the beginning of this year, which corresponds to the 2007 level.
More funds allotted for highway projects
L&T-built flyover at Panipat opened
The 3.6 km long, India’s longest six-lane flyover at Panipat built by L&T was recently opened to traffic by Mr. T.R. Baalu, Union Minister for Shipping, Road Transport and Highways, in the presence of the Haryana Chief Minister, Mr. Bhupinder Singh Hooda, and other dignitaries. Located on NH-1 and a part of the 10 km Panipat Elevated Expressway Project, this flyover involved widening of the existing four-lane to six-lane for a 10-km stretch passing through the historic city of Panipat.
The elevated portion of the expressway is 3.6 km long and this passes over the central built-up Panipat section, covering Gohana Road, Sanuli Road, Assandh Road Crossings, city bus stand and Skylark Tourist Complex in the city.
A separate two-lane peripheral road with paved shoulders has also been provided on either side of the access-controlled six-lane highway for the local Panipat traffic, which will not use the elevated structure. In addition, the construction involved three underpasses to accommodate a four-lane divided carriageway, two minor bridges and widening / construction / reconstruction of culverts, drains, ducts, etc., for services.
The highlights of the project include state-of-the-art 20-lane automated toll plaza with modern amenities, on par with European countries, smart cards and automatic classification of vehicles.
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The project was well conceived right from the conceptual stage in terms of traffic management, constructability and methodology of construction. Latest technologies and precast options have been widely used in the construction of deck slabs. Emphasis was not only laid on functional requirements but also on aesthetics of the flyover. For the first time in this part of the country, twisted decorative lighting poles with bird wings imported from Malaysia are used. Amidst ever increasing heterogeneous traffic, the flyover was constructed with utmost safety and was well appreciated by the local administrators.
L&T Panipat Elevated Corridor Ltd., a special-purpose vehicle of L&T Infrastructure Development Projects Ltd., a subsidiary of L&T, executed the project on BOT basis.
Mr. K.V. Rangaswami, President (Construction) and member on the L&T Board, said: “This expressway will provide a comfortable hindrance-free, smooth drive-through at Panipat, having solved major traffic problems. Besides ensuring hassle-free traffic flow throughout the Chandigarh-Delhi National Highway, this project will enhance all-round development in industrial, residential and commercial zones of Panipat City. This flyover is yet another testimony to L&T’s commitment to create high quality urban infrastructure for national development.”
Speaking on the occasion, Mr. Baalu said that the Rs. 325-crore project has been completed six months ahead of schedule. It would bring relief to a large number of road users in Panipat and to the people proceeding to Punjab, Jammu & Kashmir and Himachal Pradesh who were earlier facing traffic jams on NH-1. The project will lead to overall development of Panipat and the adjoining areas and boost the economy of this region. The Prime Minister, Dr. Manmohan Singh, had laid the foundation for this project in April 2006 and it was scheduled to be completed in January next year.
Making a special mention of the benefit of this project particularly in the context of rising international oil prices, the Minister said that it will lead to considerable savings in travel time and fuel costs. Travelling through this particular stretch on this National Highway would take only 10 minutes which is much less than the present average travelling time of 45 minutes, he said and added that this would result in fuel saving of about 30,000 litres per day. If several other cost factors like wear and tear are taken into account, the saving would be much higher.
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According to Mr. Baalu, the Union Government is committed to the rapid development of Haryana. Giving details of the road projects in the State, he said that work for four-laning of Panipat-Rohtak, Punchkula-Barwala-Saha-Yamuna Nagar and Babal-Rohtak-Jind sections has already been initiated.
Also being implemented is the 135-km long six-lane Eastern Peripheral Expressway. The Haryana State Industrial & Infrastructure Development Corporation is constructing the 135-km long four-lane Kundli-Manesar-Palwal Expressway, also known as Western Peripheral Expressway (WPE).
Recently the work of Badarpur Elevated Highway has been awarded, and the project is scheduled to be completed before the Commonwealth Games in 2010. The work of six-laning of 291 km Panipat-Jalandhar stretch, of which 107 kms is in Haryana, at an estimated cost of Rs. 2,288 crores has been awarded. Similarly, the project for six-laning of Gurgaon-Kotputli-Jaipur section of NH-8 has also been awarded at an estimated cost of Rs. 1,673 crores. The other major projects taken up include four-laning of Delhi-Rohtak and Zirakpur-Parwanoo stretches.
Mr. Baalu reiterated the Government resolve to attach the highest priority to development and expansion of physical infrastructure, including roads and highways. “It is a matter of pride for us that while only 2,342 km of National Highways had been completed from December 2000 to May 2004 at the rate of 1.86 km per day, in the last four years, from May 2004 onwards, our Government has completed 5,948 km of National Highways at the rate of 3.96 km per day”.
The amount spent under the National Highways Development Project (NHDP) has been increased from Rs. 6,093 crores by the previous regime to Rs. 18,066 crores by the present Government, representing an increase of over 196 per cent. Improvement of 5,679 km length has been completed under the Golden Quadrilateral out of the total length of 5,846 km, and works are in progress in the remaining length of 167 km.
Giving details of the other NHDP projects, Mr. Baalu observed that under the North-South and East-West corridors, works have been completed in 2,535 km length out of the total length of 7,142 km and works are under implementation in 3,786 kms length. Works of 6-laning are in progress in about 1,030 km length out of total length 6,500 kms under NHDP Phase-V.
The Government has also accorded approvals for construction of 1,000 km of Expressways under NHDP Phase-VI and construction of ring roads, flyovers and bypasses in selected stretches under NHDP Phase-VII. These projects are proposed to be completed by 2015.
In Haryana, about 339 km of National Highways have been widened to four-lane, about 283 km of National Highways are being taken up for widening to six/four lanes and project preparation for widening to six/four lanes of about 481-km length is under various stages of progress.
100,000th tractor rolls out of New Holland factory
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Addressing the gathering on this occasion, Franco Fusignani, CNH International, said: "When our first tractor in India was rolled out in 1998 I was here, and today we have reached a production milestone of 100,000 tractors from this facility, with a New Holland 5500, two-wheel drive tractor. This achievement is a great event for all the Indian team and reflects the growing preference by our customers in India and around the world as well as the continuous commitment of our company. We would like to thank all our customers for their continuing confidence in our brand products. We are committed to contribute substantially to agricultural mechanization in India. To take this commitment further we are investing in expanding this manufacturing facility in the production of a new drive line and axles."
According to him, "India will become more and more a source for 35-80 hp range of tractors for CNH not only for the domestic market but also for export. Investment will also be done to strengthen the customer support system. A new spare parts depot will be set up in India to serve the customers by offering easy availability."
Commenting on the new investment, Mario Gasparri, Business Leader - CNH Asia Pacific, and Managing Director, New Holland India, observed: "We have always maintained our focus on providing products that are suited for specific customer applications and to fulfil the need of Indian farmers. With this investment, we will introduce superior technology products in India in the coming months to contribute to agricultural mechanization. In addition to tractors, the company is now promoting in the country other agricultural equipment like sugarcane harvesters, balers, mowers and choppers."
New Holland Tractors feels that Indian agriculture is on an upswing and agricultural mechanization is the only way to realize the sector's true potential. With decades of experience across various countries, and a brand with over 100 years of leadership, innovation and recognition around the world, the company has been providing the complete solution to Indian farmers to help them to develop their business and improve their productivity.
Said Rakesh Jinsi, Business Director - India operations: "The company has been registering significant growth ever since its entry in the Indian market. Last year, in spite of the industry being flat, New Holland India managed to grow by 38 per cent over the previous year, further increasing its market share. The company also has provided its customers with tailored financial solutions, facilitating easy and convenient purchase of products through attractive finance schemes from its retail financing links with all leading nationalized and private banks across the country."
Thanks to superior quality and performance, New Holland India products represent a key point of reference for customers. Today the company offers an extensive range of products spanning 35-80 hp segments – New Holland 3030 NX (35 hp), New Holland 3130 NX (40 hp), New Holland 3230 NX (45 hp), New Holland 3600 (50 hp), New Holland 3630 TX+ (55 hp), New Holland 5500 (55 hp) and 7500 (75 hp) both in 2-wheel and 4-wheel drive versions.
New Holland’s is the most modern tractor factory in India. Its R&D centre is both the heart of innovation and a solid guarantee for international and domestic customers. The plant has a number of advanced features like cathodic electro-deposition (CED) painting system for sheet metal components, a first in the Indian tractor industry giving excellent finish and durability, and sophisticated high-speed machining centres for machining critical castings and components to very close tolerances. The assembly line represents the very latest solution for ensuring high quality and productivity.
New Holland has also implemented and integrated a Supply Chain ERP system, which gives extremely flexible and controlled material management. The plant employs over 700 persons. All production staff and workers are technically qualified, and many of them have been trained in New Holland plants abroad to ensure international standards of quality and productivity.
The ISO 9001:2001 certification and the ISO 14001 are certifications of quality standards achieved by the plant. With an expandable capacity to manufacture above 30,000 tractors per annum, the Indian plant is the latest amongst the several New Holland manufacturing sites built around the world. Today, New Holland India exports tractors to over 50 countries in Asia, the Middle East, Africa, Australia and North America and counts on a strong network of more than 400 dealers spread across the country.
CNH is a world leader in agricultural and construction equipment businesses. Supported by more than 11,000 dealers in 160 countries, CNH brings together the knowledge and heritage of its Case and New Holland brand families with the strength and resources of its worldwide commercial, industrial, product support and finance organizations.
WABCO-TVS wins Quality Award from Tata Motors
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WABCO-TVS provides Tata Motors with pneumatic anti-lock braking systems and complete air brake systems for commercial vehicles. This award commends the consistently excellent quality and reliability of the products supplied by all of WABCO-TVS’s manufacturing facilities in India.
The award received by Mr. T. Rajagopalan, General Manager (Original Equipment Sales), WABCO-TVS, from Mr. S.B. Borwankar, Plant Head, Tata Motors, Jamshedpur Plant, at the Vendor Awards Ceremony 2008 held in Jamshedpur, focuses on the three-year performance of the company.
“As a leading global manufacturer of commercial vehicles, we are committed to setting and sustaining the industry’s highest requirements for quality and reliability,” said Mr. Anil Singh, General Manager, Materials, Tata Motors, Jamshedpur Plant. “WABCO-TVS has demonstrated a track record of superlative results over a prolonged period of production volume growth. Our ‘Zero PPM’ quality award acknowledges that WABCO-TVS has achieved the ultimate goal of supplying defect-free products on a continuous basis.”
“This award from Tata Motors marks our ability to deliver products with top-notch quality at increasingly higher volumes, year in, year out”, said Mr. Nikhil Varty, WABCO Vice President, Compression and Braking. “Tata Motors has an aggressive roadmap for defect-free products, and we are passionate about sustaining our mutual success through excellence in quality.”
As reported earlier, WABCO-TVS has expanded its global capabilities in India by opening a new manufacturing facility in Jamshedpur and another one in Mahindra World City, near Chennai, where the company owns its third factory in India.
WABCO Vehicle Control Systems is one of the world's leading providers of electronic braking, stability, suspension and transmission automation systems for heavy duty commercial vehicles. Its customers include the world’s leading commercial truck, trailer and bus manufacturers.
Founded in the US in 1869 as Westinghouse Air Brake Company, WABCO was acquired by American Standard in 1968 and spun off in 2007. Headquartered in Brussels, Belgium, WABCO employs more than 7,700 people in 31 countries worldwide. In 2007, its total sales were $2.4 billion.
Dhanus emerges key player in telematics industry
Receives major order from Kerala bus operators
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The next time you travel by bus in Kerala, you don’t have to wait at the bus stop for hours. Just log on to the internet or even send an SMS to find out what time the next bus would arrive at your nearest bus station, and it doesn’t stop there. Once you board the bus you are in for a surprise. Flat screen TVs with DVD quality movies will keep you entertained for the entire duration of travel plus interesting advertising inside the bus. Fancy handle grips for standing passengers will provide a whole new experience in bus travel.
All these innovations are being made possible, thanks to Dhanus Technologies Ltd., which will install vehicle tracking and passenger information system in over 30,000 buses throughout Kerala. A LED display screen placed in the bus would display in English and Malayalam details such as the next stop and the distance and time that would take to reach the destination.
Dhanus Technologies, one of India’s fastest growing alternative telecommunications service providers, had entered into an exclusive agreement with two major bus transport associations in Kerala. First it signed an agreement with the Kerala State Private Bus Operators Federation for 20,000 buses to launch the first of its kind initiative of installing passenger information systems in all private buses across Kerala. Subsequently the company also bagged another order from the All Kerala Bus Operators Organization for another 10,000 buses to be fitted with a similar system. It may be recalled that Dhanus had launched the FleeTrac, vehicle tracking system services last year.
Now transport owners in Kerala can provide instant information on location, arrival and departure timing and the proposed arrival time at the destination of every individual bus via Internet and SMS. For the operator it helps in monitoring fuel usage, driver behaviour and driving patterns, idling time of the buses and route deviations.
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Mr. Srikanth Krishnamurthy, Executive Vice President, Dhanus Technologies, says that the company has started installing the tracking systems in a few buses. It is currently getting the basic infrastructure ready in terms of wiring and electrical connections, and by the end of July, it would have over 1,000 buses on road. The entire order of 30,000 buses is expected to be completed in the next 8 months.
Typically, a vehicle tracking system will involve an initial investment of Rs. 15,000 - 25,000 based on the product and its features. However, Dhanus has adopted a different strategy. It is offering the hardware absolutely free of cost and collects a monthly subscription fee from the bus operators. The monthly subscription could be as low as Rs. 500 per month.
For the bus operator, the benefits are manifold. He gets an advanced vehicle tracking system installed in his vehicle without any big investment and the main benefit would be when he will get immediate information in case of a vehicle breakdown or road accident. Also with installation of in-bus entertainment systems, it is bound to increase the occupancy ratio in buses.
Mr. A. K. Abdulla, President, Kerala State Private Bus Operators Federation, said: “We have chosen Dhanus among other vendors on account of their technical and domain expertise on vehicle tracking systems. The passenger information systems that they would be installing in our 20,000-plus buses would be a boon both for the passengers and for the bus operators who would benefit from the real-time tracking system. In addition, the system would be extremely useful in the case of unfortunate breakdowns and accidents. Dhanus would be offering a Web interface in the Malayalam language enabling every Malayalee to access and benefit from this system.”
Dhanus was selected from many other companies that had bid for this order. Citing the reason, Mr. Srikanth said: “We were consistent with our approach and responsive to their requirements. We have already tested and done trial runs on over 150 vehicles across Kerala for a two-month period and provided meaningful reports to the operators”.
In India, bus as a medium of advertising has not been tried in a big way. With more than half the population travelling on buses every day, in-bus advertising will prove to be a major source of revenues for operators. In-bus advertising will also provide a new avenue for advertisers to reach their target customers through static and dynamic advertising, including audio-visual elements, which will be displayed in the buses. Dhanus is looking at all options, including advertising part of the on-screen entertainment, advertising on handle grips (similar to what is done on Delhi Metro trains). All these additional revenues will help Dhanus recover the initial investment and operational cost and these revenues will be shared with the bus operator.
By providing the passenger with information on bus arrivals clubbed with in-bus entertainment, Dhanus hopes to take the whole experience for the bus passengers to the next level, and this is bound to further increase the number of people who use bus resulting in more collections from each trip for the operator.
“We are also planning to introduce electronic on board ticketing and integrate this with the tracking system which will help in ticketing reports, and over a period of time, the operator can even get hourly reports on the occupancy ratio and collections”, added Mr. Srikanth.
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With the order from Kerala bus operators, Dhanus has clearly emerged as the leading player in the ‘vehicle tracking system’ market. The company has been receiving overseas orders as from Sri Lanka and the Middle East, but currently its focus is on the domestic market which still remains untapped.
In fact, Dhanus has been participating in most of the government tenders for tracking and passenger information systems and is confident of getting a few more important orders soon.
Apart from the Kerala order, Dhanus has already installed Fleetrac in more than 8000 vehicle all over India with a significant presence in the BPO segment. It has its strong presence in the National Capital Region (NCR) with more than 60 per cent. It has also received orders from the Haryana Police for installing the vehicle tracking system on their vehicles. The company is now looking at the taxi despatch system as the next focus area.
India’s first online truck bazaar launched
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The Online Truck classifieds website has over 700 live listings of online trucks, tractors, buses, tippers, trailers and tempos. Each listing or advertisement is visible on eBay India for a period of 30 days and provides sellers the option of showcasing pictures and a detailed vehicle description along with his phone or e-mail. Registration is fast and easy and training is available free to all sellers via phone or in person.
Mr. Ashish Shah, Head - eBay India Motors, observed: “We are pleased to introduce the new online truck bazaar for fleet operators and dealers across India to buy and sell commercial vehicles. We have been facilitating trade of used cars, bikes, tractors and commercial vehicles through the B2B auctions for over 6 years now. While the B2B motors auction format delivers value to our corporate clients, who want liquidity and higher conversion, fleet operators look for an easy-to-use format to trade trucks where both buyers and sellers can engage in dialogues, inspect the vehicles and negotiate prices before closing the transaction.”
“The trucks are the livelihood of the fleet operator, and hence he has a strong emotional attachment to the vehicles in his fleet. eBay’s Online Truck Bazaar provides him with a 30-day transaction period that helps him evaluate prospective buyers and ensure the best price for his vehicle, he added.
Buyers and sellers of trucks nationally can log onto http://trucks.ebay.in to list a vehicle for sale or browse through the classified ads. From a tipper to trailer, tractor to excavator, interested fleet operators and traders can browse through the hundreds of classified ads on offer or post an ad themselves.
Advantages of Automatic Transmission
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A manual or AMT transmission operates a traditional dry clutch to transmit engine power to the vehicle driveline and engages different sets of gears to achieve the various gear ratios. Conversely, in a fully automatic transmission, a continuous flow of power between the engine and vehicle wheels is guaranteed via a torque converter module, while a single, sophisticated set of gears produces all of the different gear ratios. This planetary gear set takes a central “sun gear” and outer ring gear with its teeth on the inside, and connects the two with a series of “planet” gears mounted on a carrier frame.
Torque converter
The torque converter device, evolved from the fluid flywheel, is located in the front of the automatic transmission housing and is filled with transmission fluid. This fluid transmits engine torque to the transmission during vehicle launch. Thanks to its architecture, the torque converter is key to the fully automatic transmission and provides many unique benefits such as multiplication of the engine torque and reduced shock and strain on the entire driveline.
Moreover, modern automatic transmissions incorporate a lock-up clutch in this module that, when required, provides a direct mechanical connection from the engine to the transmission to always maximize fuel economy.
It is the torque converter that provides many of the differentiators that establish performance between a fully automatic transmission and an AMT. With an AMT, every time a shift occurs the clutch separates the engine from the transmission. Therefore, at every shift, there is a loss of power, momentum and speed. With a fully automatic however, engine and transmission are always connected, leading to a more efficient use of engine power and fuel, thus providing faster acceleration and improved productivity.
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Fuel economy
Historically fuel consumption for automatic transmissions has been a concern, but much of this relates to early forms of the technology and not the more recent offerings. The commercial vehicle market is focused on executing “work” at minimum cost and fuel consumption. The new generation of Allison electronically-controlled fully automatic transmissions optimizes the efficiency of the truck or bus operation assuring that at every shift there is no loss of engine power. This makes it possible to get excellent fuel efficiency with an automatic transmission.
One example in a very harsh environment is the terminal tractor used in ports around the world. In an industry where productivity is king, operators are also looking at fuel costs. “Allison’s application engineers recently enabled us to reduce a customer’s fuel consumption by up to 25 per cent by calibrating the company’s terminal tractors to the specific conditions”, says Thomas Wong, Sales and Marketing Manager at Kalmar Asia Pacific Ltd. in Hong Kong.
Experiences in France also suggest that an automatic transmission is well suited to CNG truck applications. French store Monoprix has just ordered 26 Renault and Iveco trucks with fully automatic transmissions to target “best practices in distribution” with a specific aim to deliver better fuel economy.
Reliable performance
Losing control or traction on muddy, sticky or slippery ground is an issue for truck drivers in construction. Construction sites are not known for their easy working conditions, and in bad weather the problem can become at best irritating and at worst dangerous. “When you deliver concrete, ground conditions can be really bad,” says Lars Persson from Swedish industrial transport company, Tanum. Persson drives a Scania R420 fitted with an Allison automatic transmission and finds it helps him to maintain vehicle control in even the toughest ground conditions.
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An AMT can be at a disadvantage when operating in challenging conditions. Without the ratio multiplication of the torque converter, AMT is not designed to let the clutch slip for any extended time. Therefore inching out of mud or snow could be difficult. Even feathering the throttle isn’t as effective in an AMT; these conditions can cause the clutch to slip, overheat and eventually stall the engine or force neutral to protect itself. Reliability in off-highway applications is critical and the benefits of a fully automatic are leading more OEMs to offer this. Recently, Astra, part of Iveco, announced the option of an Allison in its new HD8 tipper.
Allison is a trusted provider of gearboxes to over 250 OEMs across the globe. With a well-earned reputation for reliability, efficiency, ease of use and cost effectiveness, Allison automatics have become a popular choice for anyone who needs to reduce down time on site and keep their construction vehicles moving.
“We have learned from our customers that the Allison product is very reliable. When there is a requirement for an automatic transmission, we know that with Allison we can meet our customers’ expectations. We can fit it and forget about it!”, says Ing. Naccarella, Engineering Manager for the Astra HD8 platform.
For the European distribution sector, there has recently been an increase in the number of automatic equipped vehicles in operation. These offer a better driving experience than a manual or AMT by increasing driver comfort and safety as well as manoeuvrability at low speeds. A fully automatic offers improved control, particularly in tight loading bays or urban environments, but the real advantage in distribution is the productivity, and fuel efficiency.
An Allison automatic makes more efficient use of engine power, resulting in a 20 per cent reduction in time needed. Over the course of an average work day, more deliveries can be made and additional revenue can be earned by the fleet.
There are many other applications that suit an automatic transmission. The ability to include a retarder, thus saving wear on braking components, and the option of power take offs (PTOs) for pumps or other ancillary drives makes the fully automatic a versatile transmission. In fact, Allison has a range specifically for oilfield equipment, complete with upgraded materials for corrosion protection and fixed up shifts for oil pumping.
An automatic transmission is commonly used in airport situations too – everything from the twin engine-transmission fire truck through to the shunters that all benefit from the ease of manoeuvrability. Another example is the strong presence of fully automatics in the public transport sector. The very same reliability, efficiency, ease of operation and cost effectiveness are the key reasons for an increasing number of cities across the world to specify their city-buses with an Allison Automatic.
Last year Allison delivered over 14,000 transmissions into bus applications worldwide. Over 600 Allison transmissions were sold to Tata Motors, and are now being operated by Delhi Transport. Thousands of city buses across Asia include an Allison. These buses can be found in countries such as China, Japan, Taiwan, Mauritius, Philippines, Indonesia, Thailand, Malaysia, Australia, and others. Over 10,000 Allison-equipped city buses are now operating in Beijing, China. These buses will transport athletes and visitors during the Olympic Games.
With fully automatics also considered to offer lower running costs (no new clutches or flywheel regrinds for starters) and the possibility to protect the rest of the driveline from abuse, it is no wonder they are becoming increasingly considered by operators in a host of applications.
Allison Transmission, Inc. is the premier global provider of commercial duty automatic transmissions and hybrid propulsion systems. Its products are specified by over 250 of the world’s leading vehicle manufacturers and are used in many market sectors, including bus, refuse, fire, construction, distribution, military and specialty applications.
Founded in 1915, the Allison business, headquartered in Indianapolis, employs 3,600 people. Regional headquarters with dedicated support staff are located in China, the Netherlands, Brazil and Japan.
With a global presence in 80 countries, Allison has over 1,500 distributor and dealer locations. Allison generates annual revenues in excess of $2 billion.
Eaton to supply transmission for Tata Motors, Mahindra International
Tata Motors, which is planning to launch 11 different models as part of the World Truck series between October 2008 and May 2009, has chosen Eaton Corporation for supply of transmissions for the project. Eaton has set up a plant at Ranjangaon, near Pune, for manufacturing truck transmissions. It has started supplying to Tata Pre-World Truck. Currently the Tata LPS 4923 Tractor Trailer model comes fitted with Eaton transmission.
Eaton Corporation is a diversified industrial manufacturer with sales of $13 billion in 2007. It is a global leader in electrical systems and components for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; hydraulics, fuel and pneumatic systems for commercial and military aircraft; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety.
Eaton’s Truck Group is a global leader in the design, manufacture and marketing of powertrain systems and components for commercial vehicles. Around the world, Eaton offers drivetrain components, systems, safety products and service tools, including manual and automated transmissions, hybrid power systems, clutches, collision warning systems with adaptive cruise control, and mobile resource management solutions.
Eaton India is also planning to set up its second manufacturing facility at Ranjangaon to meet the demand for transmission components from Eaton’s facilities across the globe and also to enable it to support emerging demand for such units from domestic commercial vehicle manufacturers.
Eaton has also been chosen for supply of transmissions by Mahindra International, a joint venture between Mahindra & Mahindra and International Truck and Engine Corporation of the US for manufacturing medium and heavy duty trucks for the Indian market.
At present Eaton makes gears and shafts at its Ranjangaon facility and assembles transmissions for medium and heavy duty commercial vehicles. It also exports these items to Eaton’s facilities all over the world. The current capacity of the existing plant is 15,000 transmission units.Globally Eaton manufactures heavy duty, synchromesh medium duty transmissions for trucks and light duty transmissions for agricultural applications. It has manufacturing facilities in the US, Brazil, China, Poland, Mexico and India, and makes more than 100 manual and automated transmissions.
Eaton Corporation’s footprint in India has been growing steadily since 1999. With the global acquisition of Aeroquip Vickers in April 1999, it took over two manufacturing plants in Maharashtra, one in Mumbai and the other in Pune, under the name of Vickers Systems International Ltd. (VSIL). The Mumbai plant was integrated into the Pune operations in January 2002. The primary focus of the Pune-based VSIL is to manufacture a wide range of hydraulic components and systems.
With a view to expanding its presence in India, Eaton has established many new entities. The first was an engineering center at the Pune campus designed to do high-end engineering work for all of Eaton’s business segments. Since then, Eaton has focused on enhancing its presence in India in all business segments and on tapping into the diverse opportunities that India offers, including critical manufacturing and engineering capabilities, product development, service centers and globally competitive sourcing.
While India offers a huge market opportunity in itself, it also serves as a strategic location to enhance Eaton’s global competitiveness.
Eaton India Engineering Center was established in Pune to focus on product development and engineering effort for Eaton’s global markets. It currently employs 300 people and under its growth plan is likely to see employment increase to 900 by 2010.
Eaton has established an office in India as part of the group’s global sourcing effort, to tap the immense sourcing potential that India offers. It has also established a Global Support Service Center in Pune as an India-based customer center, serving hydraulics and aerospace customers in the US, Europe and the Asia Pacific region.
In April last, Eaton also agreed to purchase the engine valve components division of Kirloskar Oil Engines Ltd., located in Ahmednagar and Nashik in Maharashtra. The acquisition is expected to be finalised soon.
JOST India starts commercial production of fifth-wheel couplings
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Addressing the inaugural function, JOST CEO Lars Brorsen said he was much impressed with the rapid growth of India over the years, and emphasised the significance of the new plant for the company’s global strategy. “Thanks to the production of our high technology products here, we can now serve the Indian market better and more quickly. At the same time, we wish to take advantage of the resources of this extraordinary country. This is why we are very deliberately counting on qualified, highly-motivated local employees”.
In his address, Mr. Amarjeet Singh, CEO of JOST India Auto Component, the Indian subsidiary, observed: “As an integral part of the JOST Group, we at this new plant will contribute to the success and growth of the JOST World. The top quality, engineering excellence and the “Made in India” label will all guarantee a high level of acceptance of JOST products from the very outset.”
Said Peter Ormond, JOST Asia President, “we aim to equip many generations of new trucks and trailers in India with our safe, reliable systems.”
As with other important markets such as China, the US and South Africa, JOST decided last year to invest in its own production plant in India. Production of fifth wheel couplings began in less than 14 months after construction of the Jamshedpur plant.
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Production at the JOST factory meets the highest industrial standards and is the first direct 100 per cent foreign investment in Jamshedpur. In this modern manufacturing facility, the employees will be producing fifth wheel couplings for the Indian market. After a brief start-up period, they will be able to manufacture up to 50,000 couplings annually.
The new factory will also have an ultra-modern plant for e-coating (KTL). This process, used to protect JOST products against corrosion, is absolutely free of solvents and therefore particularly health and environment-friendly.
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JOST is the global partner of choice for the commercial vehicle industry. Employing around 2,000 people worldwide, it is today the leading producer of connection components for trucks & trailers. Under the umbrella brand name of JOST, the comprehensive range of products covers for major areas, namely, fifth wheel couplings, telescopic landing gear, king pins, ball bearing turntables and accessories for articulated vehicles.
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Regensburger Zuggabel completes the JOST range of products for coupling technology with drawbars for both road and agricultural use, TRIDEC offers a wide range of custom-made steering systems and suspensions for trailers.
7,200 AMW trucks and tippers on road
It’s been two years since Asia MotorWorks (AMW) officially launched its trucks in the Indian market. The company has sold over 7,200 trucks and tippers in the Indian market.
Being a new entrant in the highly competitive and brand loyal commercial vehicle segment, AMW has done very well for itself. Its trucks have evoked good market response, and this has been well reflected in the sales figures.
“AMW trucks have provided better brand experience in terms of fuel efficiency, low maintenance, better load carrying capacity, faster turnaround and ready availability of vehicles. We have also been providing 24X7 service support and hassle-free warranty settlements for our customers”, says Mr. RC Mangal, Vice President - Sales and Marketing, Asia MotorWorks.
The company has so far invested Rs. 2,000 crores in its vehicle project. It has initially set up a manufacturing facility which can build upto 10,000 trucks per annum. It is adding a new facility with a capacity of 50,000 trucks which will be ready by the next quarter of the current year. It has also set up a paint shop for manufacturing cabins, which has become operational.
AMW’s product range covers tractor trailers, tippers and rigid trucks. The current range of tractor trailers includes the 4923, 4018, 4023 and the 4930 TR. The tipper model range covers the 2523, 2518 tipper, 2518 tipper chassis, and in the rigid trucks for haulage purpose AMW offers 2518, 2518 transit mixer and 3118 8X2 model.
In 2007-08, which is the first full year of its operation, AMW has sold 4,250 vehicles. A significant portion of the sales, around 70 per cent, come from the tipper segment and balance from the tractor trailer segment. During the first quarter of the current year AMW has sold 1320 vehicles.
The company has also announced its plans to enter the LCV and bus segment. It currently has 35 dealers and over 200 service points.
As this issue goes for print, media reports indicate that Essar Global, part of the Essar Group, plans to pick up stake in AMW. However, there is no official confirmation of this development from both the companies.
Concern over mounting tyre imports from China
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In the last few years Indian tyre manufacturers are making significant investments on commercial vehicle radial tyre manufacturing. But rising imports from China are making Indian manufacturers rethink their investment. According to the Automotive Tyre Manufacturers Association (ATMA), imports from China in the Indian market have gone up by 1,300 per cent over the last five years. In fact, ATMA is asking the Government to impose an anti-dumping duty on import of Chinese radial tyres for trucks and buses.
Truck and bus tyre imports from China went up from 88,000 units in 2003-04 to 12.17 lakh units in 2007-08. These tyres are being sold at the retail level at a price almost 30 per cent lower than Indian tyres, says Mr. Rajiv Budhraja, ATMA Director General. Independent importers and grey market operators are under-invoicing imported tyres and selling them at the retail level on cash basis, without paying VAT.
Sales of these unaccounted-for imported tyres are costing the exchequer Rs. 60-80 crores per month. The customer is also a loser as these tyres are being sold without any warranty. From an almost insignificant percentage five years ago, imported tyres, mostly from China, have come to account for 14 per cent of the 86.47 lakh units in the replacement truck and bus tyre segment in India.
Indian manufacturers, particularly JK Tyres and Apollo Tyres, are concerned about the pace of Chinese imports. Though radial penetration in the truck/bus segment is very low at four-five per cent, its adoption is growing rapidly in the after-market. More transporters are switching to radials for higher fuel efficiency, with around 30 per cent reduction in cost.
In response to a questionnaire, Mr. Sunam Sarkar, Chief, Corporate Strategy & Marketing, Apollo Tyres Ltd., says that the situation is quite alarming and immediate steps are required to curb imports.
Question: What is your opinion on the dumping of Chinese truck and bus radial tyres in the Indian market?
Answer: In recent times, Indian tyre companies have made substantial investments in the truck and bus radial (TBR) segment. More such investments are in the pipeline by way of expansion and/or green field projects. However, radial tyres from China continue to be sold in India, rendering investments by Indian companies unviable. At current price realisations, the return on investment in the TBR segment barely covers interest costs. Dumping of Chinese TBRs has a long-term implication for domestic tyre manufacturers – a trend witnessed in other countries as well.
Q: Yow is the overall growth in the truck and bus radial tyre segment and the level of radialisation in the CV segment?
A: Growth of TBRs is slowly but steadily gaining momentum in India, where in the past couple of years the level of radialisation has grown from two per cent to around 12 per cent. However, if you take out Chinese radials which account for 60 per cent of the TBR market, radialisation is only around four per cent.
Q: Does the product quality of Chinese truck radials compare favourably with those manufactured in India?
A: There are 35-40 different Chinese brands available in India, and it is not fair to say that all of them are of less-than-the-desired quality levels. A handful of them have actually improved their product quality in the past few years. But the fact remains that they are not comparable to Indian top brands, nor is there consistency in quality parameters. Our concerns relate to the less-than-desired quality standards that actually compromise on the safety of our commercial vehicle drivers.
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A: The Chinese brands currently command around 60 per cent of the truck-bus radial market. Some of the major brands available in the market today are Double Coin, Infinity, Aeolus, Westlake and Super Ranger. The brands keep changing, and new ones are being introduced almost every month.
Q: If unchecked, would this trend affect the prospects of the Indian tyre industry?
A: Continued dumping of Chinese radials has serious monetary, growth, investment and R&D implications for Indian tyre manufacturers. Given the investments all of us have made, there would soon be enormous unutilised capacities and stockpiling if this trend continues. On the price front, the industry is faced with unfair competition with below par tyres that compromise on safety and service aspects. This has resulted in market distortion and pressure on margins, which in the long run could impact the R&D work we need to continue with to provide even better radial products to our customers.
Radials are the future of the tyre industry, and the Indian tyre manufacturer ought to be given a fair and even platform to compete and invest in radials. Otherwise we would face an uncertain future.
Q: What are your suggestions to discourage import of Chinese radials?
A: There are a couple of ways of doing it. We believe in fair and open competition but do not think protecting the Indian industry is the right means. However, the Government needs to be alert and alive to unfair competition. Anti-dumping measures is one clear way forward. And we are not alone. There are cases of imposition of anti-dumping duty on Chinese OTR tyres as in the US.
Since most Chinese products are sold avoiding VAT payment, the State Governments lose huge revenues. A mechanism to check this will also help the local tyre manufacturer.
Q: Do Indian tyre manufacturers have enough capacity to cater to the growing demand for truck and bus radials in the domestic market, or is it because of short supply that the Chinese tyres are being sold in the market?
A: Indian tyre companies have already made substantial investments in TBRs through brown or green field expansion to cater to the current and future demand for radials. However, if Chinese radials continue to be dumped and sold at their current prices, then it doesn’t make sense for us to continue with this investment. We would rather be compelled to switch over to other product lines.
Bus industry to get organised with Code implementation
The bus segment is driving much of the growth in the commercial vehicle segment in India. Both the city and luxury bus markets seem to show very positive growth trend, and most of the bus body builders have their order books full for the whole year. But there is flipside to this growth. In India, the chassis is manufactured by vehicle manufacturers like Ashok Leyland, Tata Motors, Eicher Motors and Swaraj Mazda, while bus bodies are built by independent builders.
Till recently, there were no regulations governing the design and building of bus bodies. The bus body building industry is still highly unorganised, and barring a handful of companies, bus manufacturers don’t have design and engineering capabilities. They don’t also have the requisite infrastructure in-house to build bus bodies adhering to safety standards.
But this industry will witness a total revamp with the proposed implementation in April next of the Automotive Industrial Standard (AIS) 052 for Bus Body Building, also known as the Bus Code. This will be done in two steps. The first phase would involve establishment of the Bus Body Accreditation System and the second involves compliance of the bus body to the Safety Standard AIS 052 (Code of Practice for Bus Body Design and Approval).
ARAI, which is a premier testing and certification agency and which also provides the technical secretariat for establishing automotive standards, has evolved the code that seeks to standardize bus body building in the country. Under the new set of rules, bus body builders in the organised and unorganised sectors would be required to build coaches whose designs meet the safety standards set by the ARAI.
As for the first phase related to the system for accreditation of bus body builders, the Ministry of Shipping, Road Transport & Highways has already notified the scheme for accreditation. Accordingly, with effect from April 2008, all body builders have been asked to apply for accreditation of their facility and capability to build buses. The accreditation is intended to ensure that they have the required infrastructure and capability to design and build buses.
The National Accreditation Board set up for the purpose will be responsible for inspecting these bus body building units through the four Zonal Boards and to grant accreditation to body builders.
CIRT, in co-ordination with ARAI, has already conducted workshops to educate bus body building units on the Bus Code. A body builder should at least have design and development facility, fabrication components, seat assemblies and inspection and testing facilities to qualify for accreditation. CIRT and ARAI have been appointed Secretariat for the Zonal Boards.
The OE vehicle manufacturer or the body builder will subsequently have to obtain a type approval certificate from the testing agencies referred to in Rule 126 of CMVR. Individual buses would be certified for compliance to the specifications laid down by the authorized third party evaluators working under the panel of experts. This procedure, while allowing flexibility of operation, will have sufficient check points for compliance to the prescribed standards and the Safety Code of Practice all over the country.
The second phase relates to the implementation of the Bus Code. The "Code of Practice for Bus Body Design and Approval', published as a separate standard, AIS - 052, primarily covers requirements related to dimensions/outline specifications for bus bodies, especially with regard to structural integrity, passenger entry/exit and safety parameters, seats, etc. AIS - 052 is available on the website of ARAI.
As in any other developing economy, in India safety measures for buses have till now not received the importance they deserve. With the entry of global bus manufacturers like Volvo and Mercedes and with Indian manufacturers like Tata Motors and Ashok Leyland getting aggressive in this segment, a lot of importance is now attached to the design and quality of buses as well as the safety and comfort of passengers.
The Bus Code for bus body designs and approval will make it compulsory for body builders to adopt safety norms while building bodies. The Code also classifies buses into city, inter-city, school and long-distance buses, and manufacturers would be required to follow the norms while building vehicle bodies to ensure safety standards.
The Bus Code was first designed in 2001. The Ministry of Road Transport & Highways, had requested the CMVR – Technical Standing Committee to frame requisite guidelines on Standardisation of the Bus and Truck Body. A sub-committee was formed under Mr. A.S. Lakra, former Director of CIRT, to look into various aspects of bus body designing.
ARAI was involved in the making of the Bus Code with the other stakeholders like SIAM, ASRTU, etc., as there was a need to draw suitable guidelines keeping in view the best Indian practices and desired practices, as are followed in Europe. This report, submitted to the Ministry in 2001, was approved by the Transport Development Council. It is essential that the facilities for testing and evaluating fully-built buses are available with all the testing agencies, so that the requirements of the entire bus body building industry could be taken care of.
To begin with, ARAI would support the industry in developing bus designs for adoption by body builders. These designs would take into account all features of a bus, right from construction material to the design of the driver's seat. The main features that would be standardized in all future bus designs would be service doors, emergency exits, steps (number and dimensions), floor height, gangway, hand rails and holds, driver and co-driver seat, passenger seat layout and dimensions, standee passenger area, fuel tanks and bumpers.
The existing bus body structures are hardly design optimal and safe. The cabin and seats have cramped designs that do not provide safety and comfort to the driver. Body designs cause extreme heat, vibration and noise and provide little protection. Mostly wood is being used in bus construction. Of late, some reputed body builders have brought in improved bus designs. Still a lot more has to be done. There is also a need to evaluate the structural design of a bus body by Finite Element Analysis for assessment of the element displacements, structural stiffness, safe passenger survival space, etc., under various loading conditions and their conformance to specified values.
The bus code will of course help organise the bus body building business. While body builders with strong infrastructure and highly developed design capabilities will be greatly benefited, implementation of the Bus Code will also lead to the elimination of small players as in any other industry that undergoes transformation.
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