Hino launches trucks in India

To introduce buses soon
Hino Motors of Japan has launched its range of trucks and tippers in the Indian market. In September 2008, the Japanese giant established a joint venture in India with Marubeni Corporation for selling Hino vehicles in the local market. Known as Hino Motors Sales India Pvt. Ltd. (HMSIN), with Hino Motors holding 65 per cent of the equity and Marubeni the balance 35 per cent, the company has made an initial investment of Rs. 20 crores.

Hino as a company is not new to India. Mr. Masakazu Ichikawa, Executive Vice-President and member of the Board of Hino Motors, said: “More than a decade ago Hino made its entry into India by providing its world renowned technology for manufacturing diesel engines to Ashok Leyland. I was personally involved and responsible for this project. I do believe that this technical transfer made a significant contribution to the Indian transport sector by ushering in fuel-efficient, environment-friendly and performance-oriented Hino Engine technology”.
He added: “We now begin a new phase of Hino in the rapidly expanding Indian commercial vehicle segment. We now bring to India globally acclaimed Hino commercial vehicles comprising a most modern range of trucks, tippers and buses which will once again contribute to bringing to the Indian transport sector the same levels of safety, performance and emission standards experienced in the developed economies. India assumes to be an important and strategic place in Hino Motors’ Global Policy. We look forward to continuing our contribution to India in a much more significant manner”.

Hino has currently launched the 500 series FM range for 6X4 tippers and the FL range for 6X2 haulage application. Presently the cabin and chassis are being imported from Thailand and assembled at its small facility at Bhiwandi in Thane district. Trucks are being imported in semi-knocked-down condition and assembled at this facility. Significant value addition by way of application bodies such as tippers, trucks, containerised vans, refrigerated trucks and buses are being done in India through identified body makers.
“Our initial activities in India include bringing cabin and chassis from Hino’s most modern plant in Thailand to India, making rear application bodies in India, fitment of items required in Indian law and delivering the vehicles to our customers through Hino dealers. Hino dealers are appointed at all strategic location in the country, and this network is continuously being expanded. All Hino dealers will have the contemporary service facilities, equipments and mobile service facilities which will offer total aftersales, parts and service support of global standard to Hino customers”, said Mr. Hiroshima Nakumara, Managing Director & CEO, Hindo Motors Sales India Private Ltd.

Hino Japan has appointed a Focused India Team in its organization. This team has started various feasibility studies. It will begin the work of making a blueprint for the India Project within the next few months. The Exact Time Target will be announced thereafter.

Mr. Nakumara said: “Initially, we have launched our 6x4 and 6x2 platforms in your market. These vehicle platforms come with the most modern engine, transmission and drive lines specially designed and manufactured to deliver best and long lasting performance. Applications like tippers and concrete mixers on our FM 6X4 vehicles and refrigerated trucks, container trucks and tankers, etc., on our FL 6X2 vehicles will deliver to our customers most efficient and environment-friendly performance”.

The company is also planning to launch a super luxury bus built in India on Hino’s top-of-the-line RM 1 E chassis platform.
Mr. Amol J. Sandil, Executive Vice President, Hino Motors Sales India Private Ltd., observed: “Though the global slowdown has affected the Indian CV market also, we consider India as a strategically important market for Hino. Though the volumes have shown deep correction in the past six months, we feel that the overall CV scene shows robust growth potential. However, we are planning to sell 700 vehicles by retail in FY 2009”.

HMSIN has established its sales and service outlets in Mumbai and Bhiwandi respectively. A central facility of parts warehouse, service and training centre, and Pan India Motor Pool is already in place. In phase 1, dealers have been appointed in the South and North, and in phase 2 dealers will be appointed in the West and East. The company is planning to have 10 dealers with 3S formalities by the end of 2009.

Mr. Sandil added: “We are carefully studying the service needs of our customers now and in future. We, in true Hino practice, will provide service and parts in the shortest possible time through 3S, 2S, 1S and Mobile Service Support. For tippers and other localized applications Hino dealers will offer at-site service facilities.”

Currently the high-end tipper market in India is dominated by Volvo, Mercedes and Scania. In the mass market segment there are Tata Motors, Ashok Leyland, VECV, AMW and MAN. Hino is positioning its products in the top end of the market which is driven more by product performance. The company is mainly targeting fleet-owners engaged in construction, mining, vehicle parts and supermarket chain.

MAN Nutzfahrzeuge CEO quits

Anton Weinmann, MAN Nutzfahrzeuge CEO, has resigned on his own as Executive Board Chairman of MAN Nutzfahrzeuge AG and as member of the MAN SE Executive Board with immediate effect.

“The well-being of the company is my primary focus. This has led me to the conviction that I will back MAN’s fresh start on the management level,” he said.

Weinmann has worked for the company for nearly 30 years. His leadership successfully spurred the strategic development of the MAN Nutzfahrzeuge Group towards internationalization and growth.

Reinhardt appointed COO of ArvinMeritor

ArvinMeritor, Inc. has announced that the Board of Directors has elected Carsten Reinhardt to the position of Senior Vice President and Chief Operating Officer (COO). Also elected executive officers are Tim Bowes as Vice President and President, Industrial, and Joe Mejaly, as Vice President and President, Aftermarket & Trailer. All appointments were effective from November 6.

As COO, Reinhardt is responsible for the overall global management of ArvinMeritor’s Commercial Truck, Industrial, and Aftermarket & Trailer business segments. Reinhardt will continue to report to ArvinMeritor’s Chairman, CEO and President Chip McClure.

“Carsten has made a significant contribution in all areas of the business since joining the company three years ago,” said McClure. “He has built a strong global team that is focused on customers, technology development, new business growth and operational excellence. His industry experience, combined with his operational expertise, commitment and ability to drive change, characterize his strength as a leader.”

Prior to this appointment, Reinhardt was Senior Vice President and President of the company’s Commercial Vehicle Systems (CVS) business group since joining the company in 2006. Before joining ArvinMeritor, he was the President and CEO of Detroit Diesel Corp., a subsidiary of Daimler AG. He joined Detroit Diesel as CEO and President in March 2003. Prior to that, he served as Vice President and General Manager (Operations) for Western Star Trucks.

Beginning his career with Daimler’s European truck division in 1993, Reinhardt holds a bachelor’s degree in Mechanical Engineering from Esslingen University of Applied Sciences in Germany and a Master of Science in Automotive Engineering from the University of Hertfordshire in the UK.
In his new role, Bowes is responsible for managing all aspects of the company’s business in off-highway, military, construction, bus & coach, fire & emergency, and other industrial applications. Additionally, he will have responsibility for the company’s business in Asia Pacific, including all on- and off-highway activities. He is located in Shanghai and will continue to report directly to Reinhardt.
Previously, Bowes held the position of Vice President and Managing Director, Asia Pacific, for ArvinMeritor. In this position, he was responsible for the company’s on- and off-highway commercial vehicle activities in the region.

Bowes was formerly Vice President of ArvinMeritor’s Specialty Products business group. He joined ArvinMeritor in December 2005 as General Manager of Specialty Products. Prior to that, he held senior-level management positions at automotive suppliers, including Hilite International, ITT Automotive and Intermet Corporation.

He holds a Master of Business Administration in International Business from Wayne State University in Detroit, and completed a Bachelor of Science in Industrial Management from Lawrence Technological University, also in Michigan.

Joe Mejaly will be responsible for the Aftermarket group which supplies axles, brakes and suspension parts to commercial vehicle aftermarket customers in the US, Canada, Mexico, Europe and South America. One of his primary goals will be to expand the company’s aftermarket business in Asia Pacific.

He is also responsible for developing and growing ArvinMeritor’s remanufacturing business which acquired two significant new companies in 2009, including Mascot Truck Parts (North America) and TruckTechnic (Europe). He will continue to lead ArvinMeritor’s global trailer business.

Previously Mejaly held the position of Vice President and General Manager of ArvinMeritor’s Commercial Vehicle Aftermarket (CVA) and Trailer business. Prior to that, he held roles of increasing responsibility, including Director of Customer Support for CVS, during which time he was responsible for managing technical support activities for the North American Field Service organization, directing the Customer Support Center, and overseeing warranty management activities. Before that, he held the position of Senior Director, Sales and Marketing, CVA, North America. He joined the company in 1985.

Mejaly holds a Bachelor of Science degree in business administration from Western Michigan University.

Daimler India contract for Modine

Modine Manufacturing Company, a diversified global leader in thermal management technology and solutions, has announced that its operation in India has been awarded a contract by Daimler India Commercial Vehicles, Ltd. The program, which will support Daimler’s light, medium and heavy-duty trucks for the Indian market, will be manufactured in Modine’s new production plant at Sriperumbudur near Chennai.

The commitment reaffirms Modine’s ability to provide the technologically advanced thermal solutions required to handle the increased heat loads present in all light to heavy-duty truck engines.

“We are pleased with the confidence Daimler India has shown in our ability to meet its requirements in today’s highly competitive market,” said Thomas F. Marry, Modine Regional Vice President - Asia. “The key to our success with Daimler India is our intelligent globalization strategy to have local production capabilities. This strategy puts us in a position to address application-specific customer needs, while at the same time offering truly globally standardized products within the very competitive commercial environment in India.”
Jerry Kapoor, Managing Director, Modine India, observed: “Modine clearly understands Daimler India’s quality expectations and our commitment to execute this important program. Thermal management technology of this type fits into Modine’s Commercial Vehicle focus and that is exactly why we developed our business in India – to serve global customers wherever they are located while meeting the needs of emerging markets.”

Modine products are used in light, medium and heavy-duty vehicles, heating, ventilation and air-conditioning equipment, off-highway and industrial equipment, refrigeration systems and fuel cells. The company employs approximately 7,000 people at 32 facilities in 15 countries.

Linnig sets new trends in drive technology

Kendrion Linnig GmbH once again presented itself as a pioneer at the 2009 Busworld in Kortrijk. “Motion is our drive – yesterday, today and tomorrow – throughout the world” continues to be the company mission, particularly in 2009.

Since the last Busworld exhibition in Kortrijk in 2007, Kendrion Linnig GmbH has registered further development in many aspects. Its global presence has increased considerably. “Apart from our existing facilities in the US, China, Mexico and Brazil, we are concentrating on additional regions and milestones,” explained Dr. Uwe Sporl, the company General Manager. “The positive signals from the global markets clearly show that we put our money on the right developments in terms of products and projects.”

Especially regarding its product range, the German firm is ‘right on target’. Objectives such as saving fuel and thus reducing emissions such as CO2 determine the R&D efforts of the Markdorf-based company. An electrical fan drive for hybrid vehicles was presented at this years Busworld exhibition where a 14 kW electric motor achieved a power/load ratio with 600 volt. This certainly provides the right answer to satisfy the market requirements.

“We achieved a major breakthrough with a concept study of an engine-cooling system with an electrical fan drive,” said Technical Manager Henning Diel. This is the answer to a growing number of customer enquiries seeking an electrical alternative to the mechanical drive.
He stated: “On the one hand, we were able to transfer our decades of experience as a component supplier to the complete cooling system. On the other hand, the markets have clearly realized our focus on this new area of research, and that this makes us a competent partner for these technologies.”

The result of the study, which was presented at the company booth, sparked discussions whether if and how such a technology can be expedient in the conventional voltage range of electrical vehicle systems.

A further contribution on reducing fuel consumption and thus emissions was achieved through further development of the Linnig compressor clutch, which is now also available in a 2-speed version. Particularly in countries with high temperatures, the possibility of demand-actuated A/C compressor control promises a crucial advance in terms of energy efficiency and driver/passenger comfort and convenience. The high-drive functionality enables swift cooling-down, while energy savings can accordingly be realized when cooling-capacity requirements are low. For this innovation, customers can rely on the company clutch technology: “For over 30 years, Linnig compressor clutches have set the highest standards when it comes to efficiency and effectiveness. We have transferred this expertise on to our 2-speed solution”, added Henning Diel.

Further development of proven Linnig technologies would also be relied on for the new generation of angle transmissions. Here, further improvements of service life and noise behavior can be achieved in combination with a preceding 2- or 3-speed linnig fan clutch. Apart from this, stall visitors got solutions, particularly utilizable for the state-of-the-art engine technologies of Euro 5 and Euro 6 with brand new high-speed deflection roller as well as star products on torsional vibration damper solutions.

The company’s variably adjustable, belt-driven LVT compressor drive represented another highlight at this year’s show. Since the IAA in Hannover, it has further improved this product and can now offer it with speed control.

Kendrion Linnig GmbH once more proved at the Kortrijk show that it can stand up to the challenges of the markets and react on specific customer requirements with innovative concepts and individual solutions. “Our customers can continue to rely on us in the future. Because the Linnig brand stands for motion – yesterday, today and tomorrow – throughout the world,” observed its General Manager.

TVS Logistics targets Rs. 2,000-cr turnover by 2012

Acquires the UK-based Multipart Holding
TVS Logistics Services Ltd. (TVS LSL), part of the $5 billion TVS Group, has set an ambitious target of Rs. 2,000 crores in turnover by 2012. The company is looking at both organic and inorganic ways to double its existing turnover in the next couple of years. Amongst its many JVs and acquisitions, the recently acquired Multipart Holdings of the UK is expected to significantly expand the company’s footprint in Europe.

The UK is one country where the maximum value-added outsourcing (including inventory ownership) of aftermarket services takes place. TVS LSL is planning to invest in excess of Rs. 125 crores into the company to fund its growth. The acquisition of Multipart Holding will provide customer access of TVS LSL and also allow it to leverage its IT capabilities to provide inspirational services to its customers in India and overseas and also expand TVS LSL area of operations to Defence and Utility Services. Multipart has annual sales of £60 million (Rs. 475 crores), predominantly UK-based, and employs 250 people out of four UK locations, two of which are based “behind the wire” on Ministry of Defence sites.

Multipart was originally formed to look after the distribution of Leyland vehicle parts and therefore has been in existence for more than 100 years. Now it is a separate independent company providing Aftermarket Logistics Services that has successfully grown its client base in the automotive and the UK Defence sector and is applying its business model to the newly-emerging utility sector.

Multipart has focused on developing excellent IT demand forecasting, cataloguing and logistics software tools which they have further leveraged to enter into other verticals like utilities in their meter installation and exchange program partnering with construction companies for physical installations. Its automotive customers include LDV, Isuzu - Commercial Vehicles, TVR - Sports Car, Optare - Bus & Coach Manufacturers, Dennis Eagle - Refuse Trucks Manufacturers and Modec - Electric Vehicles.

The Defence business works directly and indirectly with the UK Ministry of Defense and includes HASP – Challenge Tank parts; GSIPT - Bearings, Valves & Hoses; ALC - Parts for construction vehicles like JCB, Caterpillar; MBDA for the apparatus that deploy the Rapier missile.

More recently, Multipart entered the water meter replacement and fit market with Anglian Water Services as its first client. So successful was it in delivering inspirational service to Anglian Water that it was voted its service partner of the year in 2009.
The Directors of Multipart are very excited about the growth prospects under TVS which provides Multipart opportunities to expand in the UK and Europe, provide access to low-cost country sourcing and also to reverse Multipart’s IT skills into TVS, creating an excellent partnership for both Multipart and TVS.

TVS & Sons, the holding company, hived off TVS LSL as a separate company in 2004 with an objective to create value for all its stakeholders. It was planned that TVS LSL would be a preferred Logistics Service provider in Auto Vertical with a global presence in the countries which has significant Auto footprint. This growth was facilitated through acquiring companies globally and joint ventures formed in the last few years. Further TVS LSL has started providing services to companies which have discrete component manufacturing.

TVS LSL had created a joint venture in the freight forwarding space in India called TVS Dynamic Logistics Services and a joint venture in passenger commutation called TVS Commutation Solutions. Both these companies have a combined turnover of around Rs. 100 crores.

The first major step for TVS LSL had been inviting a private equity partner in 2008, namely, Goldman Sachs. After this, it had been looking for acquisitions in target markets in the UK, Europe and the US to offer support to Indian suppliers and overseas customers in sourcing from low-cost countries.

TVS LSL is one of the few players providing a complete range of services to customers, thereby offering a one-stop solution. It is a leader in providing the aftermarket logistics services in India and had been examining acquisitions in this sector as well.

Multipart Holding has always been well recognised for its service, delivery and quality. The company has diversified into new sectors in the last two years. The acquisition by TVS LSL provides the necessary financial strength and access to global customers to enable Multipart increase its rate of growth. Furthermore, Multipart will have the opportunity to source more parts from India and other low-cost countries where TVS LSL operates.

With the acquisition of Multipart Holding, the TVS LSL revenue will be around Rs. 1,000 crores in 2010 itself against our original expectation of 2012. The company’s revised target now is to cross Rs. 2,000 crores by 2012.

TVS LSL will look at further consolidating its presence in India, the US and Europe through joint ventures / acquisitions and will enter the South American and Chinese markets in 2010 to become the first Indian supply chain multinational company.

JK commissions India’s first truck & bus radial tyre plant

JK Tyre & Industries Ltd. has opened the country’s first state-of-the-art truck and bus radial tyre plant in Mysore. The expansion of radial capacity in Mysore from four lakhs to eight lakhs marks the commitment of JK Tyre to play its due role in India’s industrial growth.

On the occasion, Mr. H.S. Singhania, Chairman, JK Organisation, said the company started manufacturing tyres in 1977, with a capacity of 5 lakh tyres per annum and has grown multifold over the years to its present capacity of 158 lakh tyres per annum, along with Tornel, a leading tyre manufacturer in Mexico. JK Tyre now has four state-of-the-art plants strategically located in Rajasthan, Madhya Pradesh and Karnataka, and three around Mexico City. In Mysore itself, JK Tyre has spent more than Rs. 900 crores since 1997 towards increasing capacity and modernization, including the recently completed expansion of the truck bus radial plant. In addition, a major expansion of OTR capacity in Mysore involving an outlay of Rs. 120 crores is under implementation and will be completed in early 2010.

“The company is fast expanding its capacity across our manufacturing facilities to cater to the rising demand and drive growth. It has recently completed its expansion to Rs. 315 crores to increase the capacity of truck and bus radial tyres from four lakhs to eight lakhs per annum and is further planning to invest Rs. 1,200 crores in the next 3 to 4 years to fulfill the growth demand”, he added.

Dr. R.P. Singhania, Vice Chairman & Managing Director, JK Tyre & Industries Ltd., observed: “Today, we have 7 modern tyre production facilities across the world, with a turnover of around Rs. 4,800 crores. Furthermore, we source tyres internationally for our global markets where we have been able to establish a foothold in 80 countries, across six continents. Radial technology is high end tyre technology and is the future in developing countries like ours. India is fast radialising, with the passenger car segment being almost 95% radialised, the LCV segment at 35% and the truck/bus segment at 10 per cent. However, radialisation in the commercial segment is picking up, and it is expected that within next 5 years it would touch nearly 25%”.
JK Tyre manufactures the entire range of tyres for all categories of four-wheelers, including off the road (OTR) tyres and has three leading tyre brands – JK Tyre, Vikrant and Tornel. Vikrant is the largest manufacturing facility in Mysore, both in terms of turnover and the number of employees. In 1996, Vikrant Tyre produced 100 tonnes per day with a turnover of Rs. 350 crores. Today, the plants located in Mysore are producing nearly three times the tonnage per day, which will grow further from March 2010.

JK Tyre & Industries has committed to invest Rs. 1,200 crores in the next 3-4 years on increasing the capacity for passenger car radials and commercial vehicle radial tyres. The company is fast expanding its capacity across the manufacturing facilities to cater to the growing demand and drive growth.

Profit zooms in first quarter

JK Tyre has reported an excellent quarterly profit after tax (PAT) for the quarter ended September 30, 2009, at Rs. 59.51 crores. Net sales and operating profit for the quarter are Rs. 938 crores and Rs. 136.94 crores respectively. For the half year ended September 30, PAT is Rs. 100.26 crores and net sales Rs. 1,835 crores.

Commenting on the performance, Dr. Singhania said: “JK Tyre has recorded an exceptional performance in quarter 2 of the current year on account of all-round costs management and better operating efficiencies. As a result, operating profit has improved to 14.6% compared to -0.6% for the same period last year. Our expansions are well on course. OTR tyre and car radial expansion projects undertaken will be completed as per schedule early next year. The company’s plans for further increasing the TBR capacity from 8 lakh tyres to 12 lakh tyres and adding 25 lakh tyres for passenger car radials are also progressing well. The new site selection is expected to be completed shortly and construction of the new plant will begin thereafter.”

It may be recalled that the company has acquired 100% shareholding in Tornel, Mexico, a well-established tyre company with three manufacturing plants. Tornel’s operations have turned profitable from the beginning of this year itself.

Michelin to invest Rs.4,000 crores in Chennai plant

Pact signed with TN Government
The Michelin Group and the Tamil Nadu Government have signed a memorandum of understanding (MoU) for Michelin’s tyre manufacturing plant 50 km north of Chennai at Thervoy Kandigai in Thiruvallur district. With a committed investment of Rs. 4,000 crores, the plant will cover an area of 290 acres and will absorb 1,500 workers locally.

The MoU was signed by the Michelin management and the Tamil Nadu Government in the presence of the Chief Minister, Mr. M. Karunanidhi.
At the signing ceremony, Mr. Prashant Prabhu, President, Michelin Africa-India-Middle East, said: “I would like to express my deepest gratitude to the Tamil Nadu Government for offering Michelin a gateway to this State and providing the project with the necessary infrastructure to commence operations here. It is also an honor for Michelin to be able to contribute towards the economic development of the State. With the accelerating development of road and highways infrastructure and the number of ongoing road development projects, India is on course to offer customers the opportunity to extract the full value from radial tyres”.

The new manufacturing facility which will focus on a range of radial truck/bus tyres will start operations in 2012.
Commenting on the occasion, Mr. Philippe Neyrat, Commercial Director, Michelin India, said: “We are committed to strengthening our presence in India and growing our business. The announcement of this plant is a major step towards achieving that objective as it augments our capability to cater to our customers with our world-class, best-engineered quality products. An increase in the focus of the Government to build better roads to support the challenges of mobility of people and goods in India will result in an ever-increasing demand for radial truck/bus tyres”.

From Europe to the Americas to Asia, every Michelin manufacturing plant around the world follows the same uncompromising code of quality. The company is indeed a major player in the area of better mobility and is known for its innovative approach.

With more than 110,000 employees and sales organization set-ups in over 170 countries, including India, Michelin is one of the world’s largest tyre manufacturers. Dedicated to the improvement of better mobility, the company designs, manufactures and sells tyres for every type of vehicle, including airplanes, automobiles, bicycles, earth-movers, farm equipment, heavy-duty trucks, motorcycles and the US space shuttle at 68 production sites in 19 countries.

Mahindra Gio, a four-wheeled compact truck

Mahindra & Mahindra has created a new category by launching India’s first compact truck. The Mahindra Gio, positioned between the three- and four-wheeler utility vehicle, offers unmatched mileage of 27 kmpl at an unbeatable price of Rs. 1.65 lakh.

With low maintenance cost and high performance 9.1 hp engine from Kohler of the US for good pick-up and load carrying capacity, the Mahindra Gio is ideal for intra-city operations with payload of 0.5 ton and small turning radius. Besides, its stylish and trendy looks with signature Mahindra front grill, ergonomic design and car-like feel and features add to comfort and convenience. With semi-forward cabin along with crumple zone for additional safety, it is available in five attractive shades.

Launching the product in Mumbai, Dr. Pawan Goenka, President, Automotive Sector, Mahindra & Mahindra Ltd., observed: “The Mahindra Gio is the first of its kind entry level 4-wheel cargo vehicle, and is all set to change the dynamics of the small CV segment. As city limits gradually expand and distribution needs increase, the Mahindra Gio presents a high earning potential for customers who will benefit from its high mileage, low maintenance cost, optimum utilization of space and low acquisition cost.”

The vehicle has undergone rigorous test runs and has been validated on all performance, safety and reliability parameters. This brand new offering from Mahindra’s commercial vehicle stable also boasts of several class leading features, including the best-in-class fuel efficiency. This value for money load carrier scores highly on various parameters, including affordability, space, comfort and safety. It is also the most economical vehicle in the small CV industry.
The Mahindra Gio is being manufactured at the company’s Haridwar plant and launched in a phased manner. It will be available initially in the west, north and select eastern States and shortly thereafter in the rest of the country.

The vehicle offers greater comfort even on long trips. It boasts of several class defining features, including adjustable cushioned bucket seats, roll down windows offering more ventilation and a car-like Macpherson front suspension, ensuring comfortable ride and handling.

A tall and wide cabin with extra leg room allows easy entry and exit, adding to overall comfort. Easy to operate car-like controls and an easy to read instrument panel enhance the driving pleasure.

A semi-forward cabin with a crumple zone makes it a safe vehicle, while a balanced structure provides more stability leading to a safer drive. Multi-focal reflector halogen lights, side indicators and bigger rear view mirrors offer optimum visibility.

A strong gear box – four forward and one reverse – coupled with the powerful Kohler engine gives the Mahindra Gio good pick-up and load carrying capacity, while spring leaf suspension with a rigid axle enhances load stability. The load body comprises a fully corrugated five-foot cargo box which is strong and long lasting.

States’ orders for 11,185 buses under JNNURM

Orders for buying 11,185 buses have been placed by the States under the one-time economic measure of funding of buses by the Ministry of Urban Development under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The Government has sanctioned purchase of 15,260 buses for the different mission cities.

Maharashtra has placed orders for 2,230 buses, the highest among the States, followed by Delhi and Tamil Nadu with orders for 1,600 buses each. The lot would consist of AC low-floor, non-AC low-floor, semi low-floor buses and mini buses.

Andhra Pradesh has placed an order for 1,540 buses for four cities of Hyderabad, Tirupati, Vijayawada and Vishakhapatnam. Of this, 1,000 buses are for Hyderabad alone. The Uttar Pradesh order is for 1,350 buses and Uttrakhand 145 buses. West Bengal has finalised its order for 1,300 units, Kerala for 320, Madhya Pradesh for 175, Chhatisgarh for 100, Jharkhand for 240, Rajasthan for 400 and Manipur for 25 units.

Under the second stimulus package announced by the Government on January 2 last, it was decided that the States would be provided assistance under JNNURM for the purchase of buses in the form of grant. The financing is meant exclusively for city bus service and Bus Rapid Transit System (BRTS) for all mission cities. The funding is shared by the Centre, the States and the municipal bodies. The size of the Central allocation depends on the population density of the recipient mission cities.

Tata Motors begins distribution of Prime World Trucks

Tata Motors has begun distribution of its Prima range of World Trucks which was unveiled in May last.

The first product, the Prima 4028 S, is a 40-tonne 266-PS (Cummins ISBE engine) tractor with a 9-speed ZF transmission, and a matching trailer with new generation brakes, ABS and specialised axles for heavy duty and high speed application. The tractor-trailer is ideal for carrying freight like steel, cement and containers up to 40.2 tonnes.

The tractor’s spacious air-conditioned cabin includes reclining seats, adjustable steering wheels and arm rests for driver comfort. It has got sleepers to facilitate long-distance travel. These features are designed to induce longer and more trips. The Global Positioning System for vehicle tracking is a standard fitment.

The driving comforts enable the vehicle to operate non-stop for long hours and cover over 700 km each day, thereby offering faster turnaround.

The vehicle distribution began with select customers in Gujarat, Maharashtra, Rajasthan, Delhi and West Bengal. The driving crew of these customers have been trained at Tata Motors’ manufacturing facility in Jamshedpur. The company has already equipped its countrywide service network to support the Prima range.

The Prima 4028 S tractor has been priced at Rs. 21 lakhs (ex-showroom Delhi) and that with the trailer is Rs. 31 lakhs.

The 4028 S tractor-trailer will be followed during the course of the financial year with three other products – two 49-tonne tractor-trailers and a 31-tonne tipper in key segments and routes. They are all BS-III and BS-IV compliant.

The Prima range comprises about 10 major variants of multi-axle trucks, tractor-trailers, tippers, mixers and special application vehicles. The range has been jointly developed by Tata Motors and its two subsidiaries, Tata Daewoo Commercial Vehicle Company in South Korea and the Tata Motors European Technical Centre plc in the UK. The company has harnessed the best of inputs and technologies in styling, engines, transmission, suspension, chassis frames, fabrication and dies from partners based in countries like Italy, Germany, Sweden, the US, Japan and South Korea. The distribution of the range will be completed in phases over the next two years.

Truck sales move up by 59.18%

With the buoyancy in passenger cars and two-wheeler sales, truck sales (5 ton - 49 ton category) moved up by 59.18 per cent in October. This followed the low-cost auto finance available and the pent-up demand from fleet owners with the positive growth signals. However, truck sales were lower than in September by about 2.5 per cent.

The following is the detailed category-wise industry truck sales in October 2009 compared to the same period last year :

Sales figures given in the table also include tipper trucks used in construction / infrastructure projects, sales of which have, after a long period, come into the positive territory.

The remaining months of the current fiscal will be very crucial because of the introduction from April 1, 2010, of the BS-III emission norms for commercial vehicles all over the country and the BS-IV norms in 17 metro and other important cities. This has induced fleet operators to pre-pone truck purchases due to the fear of a hefty increase in the prices of higher technology vehicles. October also witnessed a steady upswing in truck rentals by 4-5 per cent on trunk routes with double-digit growth in the manufacturing sector and a smart recovery in the infrastructure sector.

The truck rental and retail parcel trade in the road transport sector are now operating on healthy lines, thanks to increased cargo offering on trunk routes. However, the poor show on the agriculture front due to lesser movement of fruits, vegetables, cereals and pulses is dragging down the overall cargo availability. The manufacturing sector provides almost 70 per cent of the total cargo moved by road.

With the rising demand for cargo movement truck sales have also begun to show are upward trend, and truckers are replacing their fleet fast.

The period August - October witnessed 10-12 per cent increase in truck rentals, resulting with a rise in retail parcel freight charges by around 2 per cent. However, parcel booking firms and agencies have jacked up retail rates by around 5 per cent.

AL delivery of all 875 ULE buses to DTC by February next

The new bus body facility at Ashok Leyland’s Alwar plant is abuzz with the production of ultra low entry (ULE) buses ordered by the Delhi Transport Corporation (DTC). As per the schedule mutually agreed upon, supplies against the total order of 875 buses will be completed in February 2010.

This facility will also produce the 200 ULE buses ordered by the State Transport Undertakings of Rajasthan, Maharashtra and Andhra Pradesh under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

“The buses we are building for DTC are globally benchmarked, definitely unique for the Indian roads, and DTC can be proud of ushering in a world class product for urban transportation in India,” said Mr. Rajive Saharia, Executive Director - Marketing, Ashok Leyland, at a media briefing.

The ULE buses, with a floor height of 390 mm, have a step-less entry. These 12 metre-long buses have an integral all-steel body, with 35-seats in 2x2 configuration. It will be powered by a 230 hp turbo-charged, inter-cooled engine and fitted with automatic transmission. The use of Multiplex wiring is a unique feature influenced by considerable electronics employed in the bus.

Safety, passenger ride comfort and convenience as well as easy driveability have been key considerations in the design and manufacture of the buses.

The bus is equipped with electro-pneumatically controlled doors with lock sensors so that it can be operated by the driver. The doors will not open when the bus is in motion. An anti-skid vinyl flooring with silicon impregnation, conveniently located grab bars, sleeved stanchions and a stop request buzzer are some of the other safety features. The bus is fitted with a speed limiting device and an efficient braking system.

Apart from the low floor and wide doors that afford easy entry and exit, passenger comfort and convenience are further addressed through air suspensions for jerk-free rides, complemented by modern, comfortable roto-moulded seats, air-condition and electronic destination boards. Equipped with laptop connections and a music system, the bus is also disabled-friendly.

The new production facilities are set across approximately 20,000 square metres in Ashok Leyland’s Alwar plant, which had spearheaded induction of CNG technology in Delhi buses, with a supply of over 3,500 CNG bus chassis till date. The bus building plant is equipped with ultra-modern machinery globally benchmarked.These include the cubic framing fixture, hydraulic automated paneling, conveyors for automation, body lifting mechanisms, paint booths and a shower testing facility.

The stretch paneling process is the first of its kind in India. The steel and aluminum panels in the bus are stretched to their maximum elongation limits to ensure a smooth, dent- and wrinkle-free surface.

New acquisitions give further fillip to TRF’s growth

The last year witnessed immense growth activity at TRF. This was mainly driven by the impetus given to it by the Company’s investment in York and its own expansion project at the Jamshedpur Works. The roll out of its growth plans has resulted in York setting up base in India and 51% shareholding in Adithya Automotive Applications Private Limited, an automotive applications unit in Lucknow. In yet another move, intended to accelerate the company’s growth and achieve greater synergy and capability to manufacture trailers, TRF acquired a 51 per cent stake in Dutch Lanka Trailer Manufacturers Limited (DLT), Sri Lanka for US$8.67 million in the first phase. It has also signed a call & Put Option Agreement for acquisition of the balance 49 % equity shares for a consideration of US$8.33 million.

This acquisition gives TRF access to three more subsidiaries of DLT in Sri Lanka, Oman and a JV with Tata International in Pune. DLT exports trailers to over 30 countries.

TRF’s investments and growth forays are aimed at achieving its Vision of realising a turnover of Rs. 2500 crores by the year 2013. The Company recorded a consolidated turnover of Rs. 723 crores in 2008-09, an increase of 62% over the previous year.

The man driving all these initatives at TRF is Mr. Sudhir Deoras, Managing Director. He is a leader who believes in reaching out to people and making them believe in their potential and then, artfully tapping their zest to perform. During one of his early interactions with the workers on the shop floor, over two years ago, he shared with the workers what he had been told was the expanded version of TRF - “Tata Retired Force”. Most workers laughed in agreement allowing him to disarm them. He then inspired them to change this perception, by sharing his analysis of the true potential of its people and the company. With his enthusiasm he injected in them the will to co-create a Vision to grow five times in five years to become a Rs. 2,500 crore company and ignited their minds to excel.

Ask Mr. Deoras about the exponential path taken by the once small Jamshedpur based - bulk equipment manufacturer and he is dismissive of his role. But the glint in his eye sharpens when he talks of the pride workers have in their “MNC” organisation today.

In a recent interview, Mr. Deoras spoke about this journey and much more.

GROWTH & DIVERSIFICATION

Question : What was the “big picture” that you had in mind for TRF when you assumed charge of the Company?

Answer: Since I had been away from the Tata Steel family for over 10 years, during my stint with Tata International, I was unfamiliar with TRF’s progress. On joining, I realised that we had a relatively small top-line and also a small bottomline. I strongly felt that, if we continued, as we had in the past, we would not only lose relevance and become marginalised in the industry but would also lose relevance within the Tata family itself, where leading players had grown enormously during the same length of time. Our future plan was not exciting enough and with time we would either be consumed by competition or cease to exist.

If steel plants were not being built, the power sector was seeing rapid growth. We had to belief in ourselves. We began with a new sense of identity, which was to define TRF to represent Trust, Respect and Fellowship rather than “Tata Retired Force!”

Then we got together at a huge strategy session, where senior management, youngsters, officers from all divisions got together and we began “flying the kites”. We recognised that we could deploy the same resource and yet undertake larger projects. In time we did that and we also celebrated every large order because it made us realise we could better our best and believe in the first component of our Vision.

The other aspect of our “big picture” or Vision was to question if we could diversify. We had confined ourselves to supplying bulk equipment to steel plants, power plants and mining industry; businesses which were cyclic in nature and were nor growing.

In the past, the Board had discussed diversification and we put that idea in motion by proposing that we diversify into another engineering product with a different cycle time. That is how, we zeroed in on the automobile application industry, enabling us to realise the second component of our Vision. We asked TSMG to conduct a study and their projection got us very interested. York fitted the product we were interested in. Initially York was reluctant because they had no plans to sell but our argument that India was where growth would take place , finally clinched the deal.

RATIONALE FOR M&A

Q: How do the new partnerships fit in with TRF’s growth strategy?

A: Our core competencies were in designing, engineering and fabrication for the steel industry, our principal customer, whose business is cyclical. Typically, their orders have a cycle time of 2-3 years. As of now, steel plants are not coming up and this is where the automobile industry, a business with an entirely different business cycle, will drive growth for us. York is a company which is well known for the quality of its products which are trailer axles, suspensions, etc. It was an attractive proposition as we knew that with better road infrastructure, the trailer business in India would certainly become big. After acquiring a managing stake in York, Singapore, we started York India. Once the trailer undergears were in place, we looked at forward integration and took the decision that we should manufacture trailers as well.

A greenfield project was explored, however, the time required to set up the project made the balance tilt in favour of an acquisition. Again we knew of Dutch Lanka Trailers, which has been working with the Tata Group for a while. Tata Motors certified the quality of their trailers. We went to DLT, with the same logic as we did with York that, if you do not grow and do not have a presence in India you will soon be marginalized. Since they too wanted to benefit from the potential growth and valuation, we agreed to take only 51% to gain management control, with an agreement that we will buy 49% later.

BUSINESS PRESENCE

Q: In your opinion what has been the biggest change in business outlook?

A: Our Vision was to grow in the material management business and to diversify into a new business. While our capabilities and the size of our existing businesses has doubled, our entry in Automotive Application has allowed us to hedge against cyclical ups and downs in our current business. In two years it has given us an international footprint and opened up a huge growth potential. We have also a new subsidiary in India - Aditya Automotive Applications - which will manufacture a whole new range of fixed body auto applications. In the next five years the Automotive Application business alone might touch Rs 2500 crores.

CHANGE MANAGEMENT

Q: How do you believe that the organisation is being prepared for change?

A: We have worked on several fronts, apart from the size of our projects and business diversification. At the Jamshedpur Works, we have prepared ourselves by taking the decision of upgrading machines, adding new equipment, expanding our fabrication bays and also acquiring an additional five acres of land . For all three divisions, we have added new Design Software and have hired consultants to help us migrate to a more advanced version of SAP.

On the people front, we have done a lot ofwork as well. There was a time when entire departments were being poached but not so today. We have corrected our remunerations after a benchmarking exercise, to retain talented people. The excitement created by us has encouraged lateral entrants from the market to join us.

At the entry level, we changed our hiring policy as well. We decided to hire graduate engineers only from NIITs, because we believe we must have people with the right skills. Again, entry level salaries were enhanced after benchmarking. We offered them challenging tasks, training and tools such as software and computers. The result is that we are today a Day I company in all these institutes. Weare also hiring students of the General Management Programme from XLRI. 21 engineering graduates and four management graduates have joined us recently.

To strengthen our design capabilities we now recruit students ofM Tech in Design from NIIT and IIT, Guwahati. In Finance as well it is these whiz kids who provide the top management with the analysis and inputs in areas such as mergers and acquisitions. We are implementing the Theory of Constraints and have their consultants working with us. All this costs money but we are sure we will make much more money as we can already see that it is changing the way projects are being managed. If we arc to handle huge projects we cannot afford delays. I fmnly believe if we do not prepare our people we cannot fulfill our dreams and Vision . There is already a culture change happening across the organisation.
INTEGRATION

Q: With different companies under the TRF umbrella how do you intend to achieve integration or synergy?

A: We would like synergy in design and procurement to begin with. None of the organisations are competitors, therefore, by working together we can create value. There are some extremely competent individuals in all organisations and we should utilise their expertise.A good Design Centre, for instance in Pune, India, would benefit the entire TRF Group.

In Procurement, we are currently studying the possibilities of combined buying.

PERFORMANCE IMPROVEMENTS

Q: Where are the critical constraints for future performance improvements?

A: We are addressing performance improvements in three areas . Firstly, in BMHE, we are essentially producing the same products, with the same materials as we did years ago, even though the steel making process is vastly different today.

Therefore we have taken the help of the top metallurgists and designers in the country to look at ways to reduce the cost of equipment, similar to the weight.

Secondly, the manner in which clients view projects has changed dramatically. No longer does India believe that it requires 10 years to set up a power plant. Clients want projects done in time and we are building our project capability to manage big projects, through the implementation of Theory of Constraints.

Thirdly, as explained earlier we will continuously improve the capabilities of our people by picking the right material, offering them challenging tasks, training and engaging them in challenging work.

BRAND BUILDING

Q: Given the speed and range of the transformation in TRF what advice do you have for employees on the shop floor to manage it and to understand how they can contribute?

A: Workers today definitely have a sense of pride in being a part ofTRF. They are part ofthe decision making process, because everything that is happening is due to their hard work here. We have taken a number of initiatives through

Small Group Activities and Quality Circles. We are constantly building excitement around them by going out to the shopfloor to meet the teams which have done well. As a result others get interested and work towards participating in these activities.

We have also restarted induction of youngsters in the shop floor and motivated them with the belief that they will be running the Company in the future. We are considering a scheme to upgrade senior, experienced and qualified workers with the hope that such a move will galvanise other workers to aspire for higher positions and responsibilities. The Wage

Agreement with workers has been our best-ever. I must say that the Union has been extremely supportive, constantly tell ing the workers that , all this has been made possible because the Company is doing well.

The annual bonus scheme for officers has made the rules of the game very clear. Higher profitability will translate into a higher bonus. The project team received unheard of bonuses.

But I am glad others are not demotivated because they have told me that they intend to prove their worth!

LOOKING AHEAD

Q: With private sector sentiments down, do you think the Government’s infrastructure outlay will benefit TRF?

A: All the areas of business we are in have to grow. Roads will be built so trailers will be needed, power plants will happen , the country needs ports and the steel industry will grow. With all this growth we will certainly become big. The MD’s job is to find the right opportunity and then the right people to run it. I am looking for the opportunities from this growth.

For instance, in BMHE, technology will change and one has to anticipate what will come. In the projects we have all the requisite expertise except Civil Engineering, even though we design everything.

Q: With this growth expected, how will TRF contribute to making it sustainable?

A: In equipment man ufact uring we are looking at total cost of ownership of the customer. Therefore, we are working at reducing the energy cost of running the machinery. We are also examining new technologies for greater efficiency and weight reduction of material to reduce the overall footprint of our products. While exploring new technologies and new products we are actively considering equipment such as pipe conveyors, which will significantly reduce dust and environment pollution at the work site of customers. At our Jamshedpur plant and TRF colony we have invested in rainwater harvesting and undertaken plantation activity to address both water consumption and greening of TRF.

- Courtesy: Speed@TRF

Bajaj Auto launches RE600 cargo vehicle

Bajaj Auto Ltd. (BAL), the world’s largest manufacturer of three-wheelers, has launched the RE600 cargo vehicle designed by its R&D team to deliver the highest mileage and lowest operating costs in the commercial three-wheeler category.

The RE600 offers the best-in-class mileage which is at least 5 km per litre of diesel more than other vehicles. It has a robust, solid construction and comes at an attractive price point which makes for the lowest cost of ownership.

The vehicle is specially conceived and developed for cargo movement in congested cities and towns. It has the lowest turning radius for high manoeuvrability even on narrow roads, twin front suspension and a spacious cabin for comfortable long drive, high torque for quick pick-up even with heavy loads and has ease of frequent and quick start-stop cycles, making it the best suited vehicle for in-city operations. It is thus a new category in the small commercial vehicle segment, and is priced at Rs. 1,03,686, ex-showroom Pune.

Mr. R.C. Maheshwari, CEO, Commercial Vehicles, Bajaj Auto Ltd., said: “With the launch of this vehicle, we are meeting the needs of those customers with payloads upto 600 kg but are not willing to pay high operating and fixed costs. The RE 600 would not only match but exceed the needs of those customers who rely on in-city transportation as a major need for their last leg distribution to retailers and end users. As the vehicle is attractively priced, it also has the ability to create self employment opportunities. We are confident that with this vehicle there is going to be realignment of categories in the small commercial vehicle segment.”

Bajaj Auto vehicles have always been known for their better fuel efficiency, reliability and durability. Its R&D has developed some of the most efficient drivelines in the world with pioneering technological breakthroughs. This has resulted in the Bajaj RE three-wheelers command the respect of 36 lakh customers in India, he added.

The RE 600 is being launched phasewise across the country from September onwards.

Record company performance

It was a quarter of records for Bajaj Auto. The second quarter of the current year witnessed the highest-ever turnover of Rs. 2,909 crores, exports of 224,334 vehicles, operating profit of Rs. 603 crores and the record high net profit of Rs. 403 crores.

Profit earned for the quarter exceeded that during the first half of 2008-09, and profit earned for the half exceeded that earned during the full year.

HCV segment is usually the first to enter the recession and the last to come out of it – Ramakrishnan

The commercial vehicle, particularly the medium and heavy duty segment, is on its road to recovery, says Mr. R. Ramakrishnan, Head - Sales & Marketing, Commercial Vehicle Business Unit, Tata Motors.

Talking to Motorindia at the launch of of LPT 1102 truck in Chennai, Ramki (as he is known to many in the industry), said, “the HCV segment is usually the first to enter the recession and the last to come out of it. Over the past few months the M&HCV segment, which was in the red, has seen positive sales growth. In terms of cumulative sales we are still behind last year, but month on month we are narrowing the gap”.

The domestic CV industry registered a volume growth of 14.2 per cent during the second quarter of the current year, driven maonly by strong revival in industrial activities and cheaper finance. LCVs posted robust growth of 27 per cent y-o-y while on the other hand, the MHCV market recorded a decline marginally of (0.7) per cent during the quarter. The industry volumes in the MHCV truck segment declined by 10.5 per cent, while industry volumes in the LCV truck segment grew by 9.5 per cent during the quarter, driven mainly by the mini-truck segment.

Tata Motors’ Commercial vehicle business grew by 20.8 per cent, driven by a strong revival in the domestic industrial activities and cheaper finance availability. During the quarter (July-Sep’09), the company’s volume in M&HCV segment grew by 5.3 per cent, first time since Q1FY09. Also LCV continued to clock robust growth and grew by 33 per cent, driven by continued success of ACE platform and LCV trucks and buses.The overall CV market share stood at 65.5% for the quarter; up 350 bps from 62.0% in Q2FY09.

The recovery has been across all regions but in a phased manner. Ramki said, “Northern region was probably the first to recover has been doing well right from the beginning of the year. East has been fairly stable except for the iron ore segment, which has not done well. West has recovered in September and South is just beginning to show signs of recovery” .

In terms of the segments, it is the multi-axle trucks which started recovering first. The tractor trailer segment is recovering but sporadically, in different pockets. The recovery is on account of cement and automobiles, likes cars in particular. The Tractor Trailer segment continues to be affected because of the dull exports. Latest figures show that exports are down 30% so far. Imports have increased to an extent and that has positively impacted the Tractor Trailer segment, Ramki adds.

Buses

Tata Motors has had a terrific run in the bus segment so far. During Apr-Sep’09 Tata Motors gained substantial market share in the Bus segment mainly due to greater acceptance of ICV Marcopolo and Super Milo buses. Also, Tata Motors gained market-share in the private and STU bus segment. “The deliveries under the JNNURM project have started. We have an order book for 5000+ buses under the project and there is more expected”, says Ramki. On the luxury bus segment, the company offers the Hispano fully built bus. Tata Motors has sold close to 100 units so far.

World Truck

Prima, which is the brand name for the World truck series, was launched in May last. The company has started deliveries of some vehicles. “The initial response has been good but as we mentioned right at the beginning, we are going slow on the deliveries. We don’t want to generate numbers to begin with. We want people to experience this concept, see what it does to the business. It’s a culture change for not just the the buyer of the truck but also the driver. Even our own sales and service infrastructure need to gear up for handling these trucks. We are preparing all the stake holders”, Ramki said.
The Prima range includes Tractor-trailers, Rigid trucks, multi-axle trucks and tippers. “We will be gradually launching models as we go along and it will take atleast 18 months for us to reach a volume which is a representative figure in terms of sales in each segment”, Ramki said.

Through the World Truck, Tata Motors has demonstrated its intent to offer more fully built solutions. It has successfully achieved this in the bus and wants to replicate it in the truck segment as well.

“We would definitely like to move in the direction of fully built solutions as it helps the operator in many ways. It offers them better payloads; the vehicles are designed for better engineering and safety standards and therefore more reliable and durable. Most importantly the operator starts using the vehicle from day 1”, Ramki added.

Going forward,Ramki feels that in the second half of the year the growth momentum may pick up further due to factors such as lower base in the previous year, advance vehicle purchase prior to emission norm change and continuing strong economic activity.

Tata Motors launches feature-rich 1109 Ex2 trucks in Tamil Nadu

Tata Motors has reinforced its position in the truck segment with the launch of the Tata 1109 Ex2 trucks in Tamil Nadu. The automobile giant has always been a pioneer in offering innovative solutions to customers in the commercial vehicle industry. The Tata 1109 Ex2 is the next milestone in the company’s continuing efforts to service the diverse and growing requirements of the light trucks segment.

The Tata 1109 Ex2 is a convenient, comfortable vehicle offering which has been designed to offer additional payload of 600 kg (12,500 kg GVW). The vehicle comes with 4-cylinder turbo-charged inter-cooled engine, delivering 90 PS and maximum torque of 325 Nm. Further, it has been fitted with a stronger frame, power steering and clutch booster for easy drivability.

The other additional features include clear lens head lamps, fog lamps for better visibility, deluxe cabin with digital clock, and mobile charger. Further the vehicle comes with a best-in-class warranty of 18 months/1,50,000 km warranty and longer service interval @ 20,000 km.

Addressing a press conference on the occasion, Mr. R. Ramakrishnan, Head - Sales & Marketing, Commercial Vehicle Business Unit, said: “Ex2 represents a defined set of product improvements like power steering, clutch boosters, improvements in service intervals, etc., and we’re very pleased to launch our 1109 in its Ex2 avatar for our Chennai customers.”
Clearing a point raised by our Correspondent, Mr. Ramakrishnan said that the vehicle which was initially launched in Surat in September aroused high expectations both within the company and among customers. Currently, the all-India market size for the 11-tonner trucks is around 35,000 units, in which Tata Motors enjoys an appreciable share of 60 per cent. The company has increased its market share in the 11-tonner segment in Tamil Nadu even during the current recession, from 32 per cent to 47 per cent in the last one year. The ultimate aim is to achieve a 60 per cent market share in the State, where it has so far sold 350 11-tonner vehicles and hopes to raise the level to 700 units by March 2010.

Since the Bharat Stage III will be enforced in 14 cities with effect from April 1, 2010, the company is all set to upgrade the product range, Mr. Ramakrishnan added.

Mr. Anil Kapur, Head - Sales and Marketing - Small and Light Trucks, said: “The Tata 1109 Ex2 offers more payload which directly impacts a customer’s business growth. What’s more, the Ex2 features give the new 1109 a competitive features-to-price ratio which we believe will more than match our customers needs”.

Dividend paying strategy

According to Mr. Kapur, the strategy adopted by Tata Motors during the last one year has paid rich dividends. For example, even during the current recessionary market phase, the company has been able to make more investments on R&D and has turned out several new products. In recent months, it has launched new vehicles like ACE EX, a one-tonner Super ACE, and the SK 407 tipper which have evoked good market response. With its attractive heavy retail scheme, the company has also considerably reduced the inventory level.

In his address, Mr. K. Joghee, Head - Marketing - LCV and ICV Trucks, observed that the 1109 Ex2 vehicle comes with many ‘firsts’ to its credit, including power steering, clutch booster, clear lens headlamp, enhanced service interval, longer service interval @ 20,000 km, etc. With add-on features, the product would positively help the customers enhance their revenue. With reduced oil change, the operator can also save Rs. 10,000. The ex-showroom price of the vehicle has been competitively fixed at Rs. 8.85 lakhs, he added.

Tata Motors is India’s largest automobile company, with consolidated revenues of Rs. 70,938.85 crores ($14 billion) in 2008-09. Through subsidiaries and associate companies, it has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India.

With over four million Tata vehicles plying in India, Tata Motors is the country’s market leader in commercial vehicles and among the top three in passenger vehicles. It is also the world’s fourth largest truck manufacturer and the second largest bus manufacturer.

Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South-East Asia and South America.

Scania plans Indian bus market entry in 2010

Swedish commercial vehicle major Scania is planning to enter the Indian bus market in 2010. “We are now doing a feasibility study for launching our buses in the Indian market. The high-end segment is interesting for us, and we have a good product range to offer. We expect that sometime during the course of next year, we would’ve finalised our entry into India. India is a very important market, and we have to be there. However, we are not in a hurry at the moment”, said Mr. Martin Lindstedt, Executive Vice President, Frachise & Factory Sales, Scania.

Scania entered the Indian market in 2007 by launching tippers in partnership with L&T. The cabin and chassis are currently imported as completely built units (CBUs) and tippers are being added locally. The company has sold over 500 units in India till date.

Scania is now looking at the possibility of introducing on-road vehicles and setting up an assembly facility in India both for its truck and bus projects. “We are doing the feasibility study in close co-operation with L&T. Our partners will also need to decide whether it is their core competence”, he said.

As part of the feasibility study, Scania has imported a few bus chassis and has built bodies with a few bus body builders. These are exported to nearby markets like Bangladesh where Scania has secured orders for buses.

Globally Scania has very strong relationship with Irizar. In India, Irizar is already present with its JV with Ashok Leyland and the TVS Group. Does this offer an opportunity for Scania? “India with its fast development is an important market, and we will definitely be there in India at the right time”, Mr. Lindstedt added.

Temsa puts India plans on hold

Turkish bus major Temsa had announced its plans to enter the Indian bus market by 2010. But the plan has been put on hold in view of the global recession which has impacted the company’s business.

“India is an exciting country. There is a big potential for buses and coaches, and we definitely want to be in the Indian market. But we have to weather the crisis situation in our existing markets, and then when the time is right we will hopefully make our way into the Indian market”, said Mr. Omer Sozuktek, Business Development Director of Temsa Global.

Disclosing this at Busworld, Mr. Sozutek said that, despite recession in the European market, the company has done well and will maintain the same volumes this year as in the last in terms of exports to Europe. It is the domestic market in Turkey where Temsa has been very badly affected due to emission change regulations and appreciation of the currency.

The company unveiled a completely refreshing and new brand identity for the Temsa brand. “Hopefully by the beginning or the second half of 2010 we hope to see some recovery, and then we will be in a position to reconsider our decision of coming to India”, Mr. Sozutek said.

Temsa had conducted detailed feasibility studies in India with component manufacturers, fleet operators and transport corporations. It was also in discussion with a few partners in India for a possible joint venture. “JBM is definitely a strong candidate for becoming a JV partner in India, but we haven’t decided yet and we will see how things progress”, he added.

Temsa is a leading commercial vehicle manufacturer and distributor. It is part of Sabanci Holding, one of Turkey’s leading conglomerates.

Temsa global operates in three business fields: manufacturing and distribution of its bus & coach brand Temsa in Europe, Turkey, the Middle East, North Africa, the Gulf countries and North America; manufacturing and distribution of Mitsubishi FUSO light trucks in Turkey, Georgia, Kazakhstan and Azerbaijan, and of Mitsubishi passenger cars in Turkey; and distribution of Komatsu construction equipment in Turkey, Georgia, Azerbaijan and T.R.N.C.
Temsa’s global turnover in 2008 was $870 million, of which bus & coach exports alone accounted for $202 million. The company exports close to 75 per cent of the buses and coaches produced at Adana, more than 80 per cent of which are for Europe.

Temsa has currently nine models to offer in Europe: Diamond, Safari HD, Safari RD, Opalin, Tourmalin, Tourmalin IC, Metropol IC, Avenue LF (Diesel, CNG and Hybrid Diesel/Electric) and Avenue LE. The company sells its buses in over 46 countries.

ZF-Ecomat highly successful in India

In the course of an extensive government program, local public transport in India’s metropolises has been completely modernized. For modern bus fleets economy and reliability are important criteria – two characteristics, incorporated by ZF Chassis and Driveline Technology. Evidence provided through different applications at various Indian transport authorities and international fuel consumption tests.

For four years, Volvo India has exclusively installed automatic transmissions of the ZF Ecomat type in its city buses. The economical 6-speed automatic transmission convinced the vehicle manufacturer particularly through its superior reliability. Especially in public transport reduced downtimes are a highly important factor, that is quickly communicated: For this reason, Volvo is providing transport authorities in Bangalore, Chennai, and Pune with city buses of the B7R type by 2010. ZF Ecomat transmissions installed in these buses will provide reliable, economical, and comfortable drive solutions. All in all, Volvo, currently the only foreign bus manufacturer in the country, will use more than 700 vehicles for transport service in India’s metropolises and all of them are equipped with ZF Ecomat transmissions.
India’s local public transport is about to face a real paradigm shift: By pursuing the objectives put forward by the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the emerging nation aims at significantly improving the quality of life in Indian metropolises, such as Delhi, Mumbai, and Kolkata. To this end, a modernized local public transport system shell make its contribution. Buses equipped with ZF Ecomat are most suitable.

The 6-speed automatic transmissions are already in service in numerous European metropolises where they offer both a high degree of driver and passenger comfort and high fuel economy at the same time. International fuel consumption tests confirm: By combining the transmission with TopoDyn, the intelligent shift strategy which was specifically developed for the Ecomat transmission, fuel consumption reductions of up to 19 percent are possible - compared to Ecomat transmissions without TopoDyn. TopoDyn is a software which collects information on the route’s topographic profile during travel and, in relation to this specific profile, selects the most economical shift strategy.

ZF Ecomat was specially designed for applications in city buses. With the high number of setting-off processes, city traffic is characterized by high fuel consumption. This does not apply to the Ecomat: By closing the torque converter lock-up clutch shortly after starting, the transmission saves additional fuel and provides better riding/driving comfort at the same time. Moreover, the integrated retarder allows wear-free braking which considerably reduces life cycle costs.

Not only ZF driveline technology that is used in India, but also ZF chassis technology has convinced Indian transport authorities. For this reason, more than 2,000 front axles of the RL 85 A type are installed in buses by Tata Motors, one of the largest bus manufacturers in India. Another 400 will be delivered before the end of 2009. Other Indian manufacturers have also filed inquiries.

In business since 2007, ZF India Pvt. Ltd. is primarily active in the bus sector, has four service locations for customer service / aftersales support. However, the ZF location in India is still in the process of being established: Since the beginning of 2009, ZF India has had four “flying doctors” to ensure further improved customer support also outside of the service centers.

Hanover Displays garners significant marketshare in India

Hanover Displays Ltd., the world’s leading manufacturer of electronic destination sign boards, was one of the early entrants in the Indian bus market. Today, the company commands a marketshare of over 70 per cent supplying to all major OEMs. In a recent interview to MOTORINDIA, Mr. Steve Colquhoun, Commercial Director, Hanover Displays said that he is confident of the future growth prospects in the Indian bus market.

Excerpts:

Question: Could you briefly outline the business operations of Hannover Displays (HD) at the global level and the products manufactured?

Answer: Hanover Displays is Europe’s leading manufacturer of electronic destination signs for public transportation industry. Established in 1985, the company has subsidiaries in France, Italy, Spain, Australia and the US with a worldwide service network.

Q: When did HD enter the Indian market and what are the products offered in India?

A: The company which entered the Indian market a little over five years ago was the first to introduce LED signs here. It offers daylight viewable LED destination signs, internal displays, controllers, voice announcement units, TFTs, bus shelter signs, etc., which generally constitute the Passenger Information System.

Q: How good is the business in India so far?

A: Since we were the first to introduce these signs, it took us two years or more of consistent efforts to start generating business. Since then, the business has picked up, as more and more STUs are going in for LED sign boards for use in city buses. They may subsequently be installed in inter-State buses also.

Q: Who are your major customers?

A: All the OEMs like Tata, Ashok Leyland, Volvo, Eicher, Swaraj Mazda, etc., and most of the leading bus body builders and domestic airlines have been already using our products.

Q: About the important achievement in the Indian market?

A: Within a span of five years we have gained a market share of more than 70 per cent. A service network has been established countrywide for 24/7 support to customers. The trouble-free products enjoy quick market acceptability.
Q: Currently you are working with an Indian partner. Are you importing the products or manufacturing them locally?

A: Except the popular LED PCB board, all the aggregates have been indigenised.

Q: Do you plan to have a full-fledged manufacturing facility in India, so as to be more competitive?

A: Other than the radial and SMD insertion, the entire operations are done at the Indian plant. This being the case, we have proved extremely competitive. After the current orders obtained under the JNNURM scheme are executed and if the demand continues, we could contemplate establishing a full-fledged manufacturing facility in India. As of now, over 2,500 buses have been equipped with our systems.

Q: The JNNURM order has been a big boost to the city bus segment in India. What is your share of business?

A: Our share exceeds 60 per cent. Our products are better rated for intensity and visibility. With an offer of 10-year warranty, the products are known for their trouble-free performance.

Q: Apart from the bus market, which are the other segments you are targeting? Is rail a special focus area for HD?

A: As of now we are focused on the bus market and may soon start offering bus shelter and bus terminal signs. Metro trains is an area of interest, though the volumes do not yet justify our getting into this segment.

Q: What is your perception of the Indian market and what are future plans for the market?

A: Brighter prospects. With the expanding infrastructure and enhanced connectivity across the country, buses would be the lifeline for general commuters. With the Tier 2 cities also gearing up for business expansion, overnight executive travel will attract greater attention. Added to this is the Government initiative to introduce BRT and more buses to reduce traffic congestion. All this will give a big boost to the already growing bus market.