Tata Motors launches the world truck range

Just a couple of months back, Tata Motors launched the world’s cheapest and smallest car, the Nano, and now comes the big daddy of Indian trucks, the Tata World Truck. It just goes to prove once again the versatility and the competence of the company to simultaneously develop products in completely different vehicle segments. The World Truck was launched by Mr. Ratan N. Tata, Chairman, Tata Motors, at a spectacular event held recently in Mumbai.

The World Truck is not just a single truck but a range of trucks covering multi-axle trucks, tractor-trailers, tippers, mixers, and special application vehicles. Tata Motors has invested over Rs. 1,000 crore in developing the world truck and will manufacture it in India at Jamshedpur where it has established a state-of-the-art facility, and also in Dusan in Korea. The product 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.
Mr. Ratan Tata said: “The developing infrastructure in India makes it possible for transporters to reap the benefit of trucks with higher power, speed and carrying capacity. The new range from Tata Motors will meet those needs. It will also help us penetrate international markets more effectively and competitively.”

The new plant set up in Jamshedpur for the World Truck can produce 55,000 units initially and can be expanded to 1.5 lakh units based on the market demand. The company expects international volumes to be at par with numbers in India. The range comprises multi-axle trucks, tractor-trailers, tippers, mixers, and special application vehicles. Besides India, they will also gradually be introduced in South Korea, South Africa, the SAARC countries and the Middle East.

The Managing Director of Tata Motors, Mr. Ravi Kant said: “The range is an output of collaboration across the Tata Motors family, supplemented by inputs from partners across the world. This approach has enabled us to harness appropriate expertise and develop relevant products faster than ever before.”
For the next couple of months, Tata Motors will seed the market with a few of these trucks by giving it to some key customers. “The trucks will be available in the domestic market in the second quarter of this fiscal,” said Tata Motors Executive Director-Commercial Vehicles, Mr. P. M. Telang.

The company, however, would start exporting these trucks only by the end of the current financial year. “We expect to start export from the end of this fiscal. Initially, we will be exporting to countries such as South Africa, the Middle East, Russia and Turkey,” he added.

But why a world truck? ask Mr. R. Ramakrishnan (Ramki, as he is known to many in the industry), Head of Sales and Marketing - Medium and Heavy Commercial Vehicles, Tata Motors, and he says, the whole idea of making a World Truck started a decade ago, in 2000, when Tata Motors announced the worst results in its corporate history, a loss of Rs. 560 crores. “This is when we started looking inwards introspecting and understanding as to where we went wrong. What should we do to ensure that this performance doesn’t repeat ever in the history of Tata Motors. While we took some immediate steps to improve quality, reduce cost and focus more on our customers, a group of us started looking at what we should do in the long term”.

He said: “Looking at our product strategy, the market growth and the products we were offering then, we decided to look beyond the Indian shores and looked at the world as a canvas and thats when we came up with the idea of developing a truck which will be for the global market. The mission was to clearly modernize road transportation in India and effectively compete with global players who had entered or announced plans to enter the Indian market and also to extend Tata’s global footprint by competing with these global brands not just in India but even in other markets.
“We then set a goal to retain our market leadership, which is close to 70% in the medium and heavy commercial vehicle space in India, and also increase our international presence. With markets developing in different part of the world, competition was intensifying and India, which was lagging behind compared to countries like Brazil and China, started on the growth process with the ambitious plans to build roads across India. Customer awareness also increased about the availability of technology and products and competition in their sphere was also intensifying and they were faced with the challenge of running their operations more effectively and therefore more profitability”, Ramki added.

According to him, as the road and other supportive infrastructure in India is increasing, to meet changed requirement of operating economics parameters, the need for vehicles with higher power to weight ratio is expected to go up. Tata Motors made an analysis of horse power per tonne of carrying capacity (power to weight ratio) in developed countries like the UK, the US, Japan and developing economies like China and Brazil. It showed that as we move towards the heavier range the gap widens, which means the truck plying in the country today are grossly under powered as compared to trucks in other countries.

Tata Motors has also taken into account the requirement of customers in various markets and put all these inputs together in developing a range of trucks which are reliable and durable fuel-efficient trucks that are “ready-to-use” – providing the lowest life-cycle cost.
The World Truck range covers all the applications in the heavy and medium duty truck segment from 10 ton to 49 ton GVW/GCW. It addresses the needs of individual operators, fleet operators, mining / construction contractors, institutional buyers in all chosen markets. The World Truck will cater to a number of applications which might be in small volumes individually but together, it can contribute to significant numbers.

Tata Motors has worked with many global companies in developing the World Truck. Engines from the US and Europe, Cabin has been styled in Italy, the chassis frame from Mexico and gear box from the US and Europe.
Aggregates

The entire range is having a new modular design cabin and chassis with high powered Euro-3 and Euro-4 engines. It also offers the features compatible in global markets with performance characteristics matching world benchmarks. The powertrain option stretches from 150 PS to 560 PS, with suitable engines, transmissions and axles of different makes. Additional features on offer include automated transmissions and air suspension.

The World Truck will offer a combination of Cummins ISBE and ISLE engines and Iveco Cursor 9 engines. Initially the company is launching the 280 and 380 hp range of trucks and progressively will introduce higher horsepower engines as per the market requirement.

What’s interesting is the introduction of Iveco engines in the high end tractor trailer models. In gearbox again, Tata Motors is offering two options – ZF and Eaton. It’s clearly an integration of aggregates to develop a truly world truck. “We are design ready with over 200 combinations and potentially can create over 1000+ combinations. Every truck will have Global Positioning System for effective vehicle tracking as standard fitment”, added Ramki.
The range offers a higher power-to-weight ratio translating into faster turnaround time, better reliability and durability, and resulting in higher revenue generation for the transporter than is the norm now. The versatility of the range meets several needs: tractor-trailers and multi-axle trucks for long distance transportation, rigid trucks for short-distance distribution, tippers, mixers, cranes for construction and mining, special applications like reefers, bulkers, and tip-trailers. The capacity of the trucks can be from 10 tonnes to 75 tonnes gross combination weight (GCW), to meet a wide mix of usages.

Comfortable cabin options

The spacious air-conditioned cabs come in three different lengths (day, rest and sleeper), three different heights (flat, low-dome and high-dome roof) and in two different widths. While there are two trim levels, features include reclining seats, adjustable steering wheel, seat belts and arm rests (for both the driver and co-driver) for driver comfort and safety. These features are designed to induce longer and more trips and safer driving.
In terms of speed, all vehicles, except the tipper, can hit and hold 100 kmph on the highway. This means if in a conventional truck you cover 350 kms, on the World Truck you can easily cover over 750 to 800 kms. This is double the distance covered which means, the time taken will come down by half, faster delivery, better productivity, higher carrying capacity resulting in lesser trucks on road and lesser pollution as well.

The truck has been designed to meet the highest safety standards. The truck meets the Swedish norms which is possibly the stringent safety norms across the globe. The truck meets present and upcoming safety norms as per AIS 029. The product has been tested extensively on road covering over 1 million kms and also in the virtual environment in the 4 post and 19 post test rings for over a million kms.

Tata Motors has developed a truly World Class Truck. The truck looks stunning and breath-taking. A lot depends on the performance of the product on road and how well these trucks serve the transportation needs in India. But what Tata has launched today clearly is the product for the future. The company has announced to the world that it is ready with trucks which are made not only for India but for many other global markets as well.

What amazes me is the way the company has gone about developing and strengthening its commercial vehicle business. The company has done well in the bus segment, both city and intercity, thanks to the JV with Marcopolo and the acquisition of Hispano.

In the truck segment, the acquisition of Daewoo’s truck business in 2004 has helped in getting a better understanding of the requirements of the global truck market. This is possibly the first step in its long journey of becoming a global leader in the commercial vehicle segment. The World Truck will surely make the global industry stand up and take a more closer look at Tata Motors.

TRF subsidiary York Transport launches trailer axles

York Transport Equipment (India) (YTEI), a subsidiary of TRF, launched its first axle from its manufacturing facility located in TRF’s premises in Jamshedpur. In view of the growing demand for trailers and the need to be close to the rapidly growing customer base in India, the York Group, a subsidiary of TRF, since October 2007, has set up YTEI.

York Transport Equipment, Singapore, is a leading manufacturer of trailer axles, mechanical and air suspensions and other trailer accessories in Asia Pacific, Australia-New Zealand, Middle East and Africa regions. York has three manufacturing units, one each in Singapore, Melbourne and QingDao in China.

The York Group has a wide range of products covering axles (5” round, 6” square) from 12 to 17.5 tonnes; disc brake axles, self steer axles and ABS ready axles; mechanical leaf spring suspension (both under slung and over slung) from 12 to 17.5 tonnes; mechanical bogie suspension from 20 to 40-tonne capacity; walking beams suspension from 24 to 40-tonne capacity; and air suspension from 9 to 12-tonne capacity.
York’s most popular axle in India is the 5021 which is a 6” square axle with 14mm wall thickness. These axles are specially designed for trailer application and can carry 12 tonnes at a speed of 105 kmph. York products meet the European ECE quality standards, certified by RWTUV of Germany and have compliance approvals with the Australian Design Rules.

YTEI plans to soon start manufacturing other variants of these axles, viz., 5021 with wider track of 1950mm and 5021 with antilock braking system (ABS) ready. Another popular axle, 2021, a 5” round widely used in air suspension applications, would also be produced very soon.

York’s products have been sold to trailer builders in India since last five years. Tata Motors is a major user of York axles and other products in the trailers that they sell along with their prime movers.

Speaking on the occasion of the launch, Sudhir Deoras, TRF Managing Director, Chairman, York Group, said that YTEI would build capacity to produce over 100,000 axles in the future.
Record production

TRF celebrated record performance of all its divisions in 2008-09. All the divisions reported better performance over the previous year and made commitments to further improve the company’s performance to achieve the aspiration of becoming five times bigger in five years time and an international name in the area of bulk material handling, under the Vision-2013 campaign.

However, in the midst of the celebrations a note of caution was also struck and suggestions to combat the economic downturn were discussed to ensure that the company would continue to maintain its successful march towards its goal.

Speaking on the occasion, Hemant Kharkar, Chief Operating Officer, said that, compared to last year, the company would have to face the challenges of the economic downturn throughout 2009-10. He emphasized the need for adopting process improvement techniques which would help to sustain the performance of the company.

RC Nandrajog, Executive Director, suggested that the best way to face the challenges of the economic downturn is to implement the strategy of cost control, cash management and corporate efficiency. This, he said, would not only help the company to tide over the impact of recession but also prepare well and reap the benefits of economic upturn in the future.
The Tata Robins Fraser labour union, general secretary, RK Rahi, assured that they would continue to give unstinted support to all the growth plans of the company. He hoped that the company would further increase the emphasis on training in the future.

Sudhir Deoras congratulated the efforts of all employees of the company towards the success in fiscal 2008-09. This, he said, was the outcome of a well planned strategy.

He prescribed that by adopting advanced and relevant technology, upgradation of human resources by training and timely completion of projects and delivery of products, the company would be able to satisfy its customers much better than before.

He expressed confidence in the ability of the employees to achieve the targets of 2009-10.

The journey so far...

It has been a very long journey for Tata Motors. Set up to manufacture locomotives and other engineering products, Tata Engineering and Locomotive Co. Ltd. (Telco as it was known earlier) started its journey way back in 1945.

By keeping customer needs in focus, Tata Motors has scripted an automobile revolution that has secured triumph for the company and recognition for the country. Over 40 lakh Tata vehicles ply on Indian roads since the first one rolled out in 1954. Today seven out of every 10 trucks on Indian roads sport the trusted Tata name. The company has been at the forefront of a movement that has set a whole nation on the move.

The seeds of this success were sown when Telco entered into a technical and financial collaboration with Daimler-Benz AG (now DaimlerChrysler) to launch the Tata Mercedes Benz. This was the first acquaintance that Indians had with an Indian vehicle manufacturing company. The collaboration with Daimler-Benz AG ended in 1969, but Telco had by then built up enough steam to power forward on its own.

Until June 5, 1969, the trucks bore the Mercedes “star” after which it was replaced by the Tata “T”. The roadmap for the future was laid out by JRD Tata and Sumant Moolgaokar who, sensing a boom in the automobile industry, decided to set up a second factory in Pune. The rest, as they say, is history.

During June 1969-December 1976, Telco gave the market as many Tata vehicles as the Tata Mercedes-Benz vehicles produced in the earlier 14 years. Over the next 40 years, the brand that epitomised movement and progress in this country itself embarked on a journey of evolution and learning. Imbued with the pioneering spirit and driven by the pursuit of automotive excellence, Tata Motors forged a reputation that made it India’s largest and one of the world’s top five automobile manufacturing companies.

From 1986 with the Indian automobile scene witnessing a radical change, Telco’s R&D came up with the 407 series – the truck (a light commercial vehicle), designed in-house, was created for Indian conditions, not modified to suit Indian conditions as others were. Approximately 32 applications for LCV manufacture had been approved by the Government, and most with foreign collaboration. To this, Telco’s R&D had a savvy market answer – the 407 specifically created for Indian roads and quick to become the market favourite.

Along the way, Tata Motors introduced a range of products and made additions and improvements to a host of others. The appreciation that these launches and improvements were met with validated the company’s focus on customer satisfaction. Often the fame and goodwill transcended mere geographical boundaries.

Tata Motors aimed to increase its presence worldwide. In 2004, it acquired Daewoo Commercial Vehicle Company of South Korea. The main reason behind the acquisition was the companys plan to reduce domestic exposure.

On its journey to make an international foot print, it also made significant acquisitions and joint ventures to improve its bus business. In 2005, sensing the huge opportunity in the fully-built bus segment, Tata Motors acquired 21 per cent stake in Hispano Carrocera and introduced its high-end inter-city buses in the country. It has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader, in bus body building, for city and midi buses. All these initiatives have already started showing the desired results.

With the launch of World Truck, Tata Motors is making an entry into the territory which has been hitherto dominated by the Daimlers, Volvos and the Man. The success of the World Truck will be a key factor which would decide the company’s aspirations of becoming a global commercial vehicle manufacturer.

World Truck fitted with JAI parabolic springs

Tata Motors’ World Trucks range would be the first heavy commercial vehicles in India to have parabolic springs from day one. Jamna Auto Industries Ltd. (JAI) and Tata ERC engineers have worked together to produce parabolic springs for this prestigious range of vehicles. These springs have gone through many stringent tests both at Tata Motors and JAJ.

JAI, India’s largest spring manufacturer with four manufacturing units, introduced the parabolic springs technology in India way back in 1988. About 95 per cent of European trucks run on parabolic springs, whereas in India switch-over from traditional conventional springs to parabolic springs in heavy commercial vehicles has just started.

JAI introduced parabolic springs for the Maruti car in 1988 and later on produced the same for the Sumo and Ace range of vehicles.

Parabolic springs not only improve the ride comfort but also increase the life of the springs with the superior manufacturing technology involved. These springs weigh 20-25 per cent less than conventional springs.

Tata AutoComp powers World Truck

Tata AutoComp Systems Ltd., a leading automotive component conglomerate, has significantly contributed in the engineering, design and supply of components to the Tata World Truck.

The challenge faced by Tata AutoComp was to design and develop state-of-the-art components while keeping Indian operating conditions of overloading, rough roads and extreme weather conditions in mind. It is for the first time that driver, co-driver and occupant safety and comfort was given importance in the heavy vehicle segment. The emphasis is on enhancing the aesthetic appeal of the vehicle, smoother ride, high power, ease of handling, and comfort and safety of the driver and the co-driver.

The design and engineering teams at Tata AutoComp worked closely with the development team at Tata Motors to deliver a superior product.

Details of the various components supplied:

Cabin exterior and interior: This is the first time that a heavy commercial vehicle in India is designed with a driver cabin made of light materials like plastics and composites. Tata AutoComp Systems’ Interiors & Plastics Division and Automotive Composite Systems’ have contributed major components in plastics and composites which go into building the cabin.

In fact, the Interiors & Plastics Division has been there as an Early Supplier Involvement (EIS) in this project from the styling surface in Italy. This has resulted in overall reduction of the weight of the cabin as compared to the traditional sheet metal, leading to enhanced styling and durability.

Seating systems: The seating system is specially developed to ensure total driver comfort and safety. ISRI-TJC, a joint venture between Tata Johnson Controls Automotive Ltd. and Isringhausen GmbH, first did a benchmarking of all global truck seating systems. The seats were designed and developed in Germany meeting Indian and global standards. The designs also took into account Indian road conditions.

This is the first time that a seat with integrated seat belt meeting the AIS and ECE regulations is introduced. The driver seat is fitted with world class mechanical or pneumatic suspension mechanisms that allow vertical height adjustment, fore and aft movement, tilt mechanism for cushion, adjustable lower and upper lumber supports and high density foam and bolsters for additional comfort. The seats are also fitted with a heater option to provide comfort in extreme cold conditions.
Braking system: The air braking system developed by Knorr-Bremse is designed with a braking system pressure of 10 bar against 8.1 bar currently offered on similar vehicle platforms for better braking performance. An advanced air processing unit replaces the traditional air dryer to ensure better air management as it is a combination of air dryer and oil separator and has a multi-circuit protection valve, thus offering higher reliability and service life.

To offer modularization and better space management, an integrated pedal unit has been developed. The hand brake valve has been designed with a trailer check function. Over and above, a state-of-the-art trailer braking system with ABS has also been developed.

Currently the trailer performance is not governed under Indian regulations. Hence trailer manufacturing is largely an unorganised industry. Introduction of this advanced trailer braking system will vastly enhance dynamic behaviour and road safety of tractor / truck and trailer combinations in the World Truck.

Wiring harness: For the first time; a new fuse and relay box based on bus bar with F-F terminal has been introduced in a commercial vehicle. This has helped reduce 75 circuits. A special bulk head has also been designed for as an interconnector between the front and dash wiring harness. This will help in trouble-shooting, enhance serviceability and ensure ease of fitment on the vehicle. The routing of the entire harness on the vehicle has been developed with 60 different clamping options.

Headlamp and fog lamp: This is another first of its kind in Indian commercial vehicles where the head lamp designed by Tata Visteon Automotive Ltd. comes with the poly ellipsoidal system (PES) lamp. This offers excellent light spread and sharp beam cut-off to ensure no glare for the on-coming driver. The high beam is designed to give one of the highest light output of over 100 lux for clear nigh time visibility.

The compact lamp aesthetically blends well with the overall exterior design of the vehicle while meeting global standards of light output. The specially designed fog lamp provides additional visibility in challenging weather conditions.

Suspension systems: The Tandem Bogies suspension systems indigenously designed by TACO Hendrickson Suspension Ltd. take into account all Indian operating parameters like road conditions, overloading and ease of serviceability to ensure better ride handling and control. The suspension systems have been designed to perform up to 15-25 per cent overloading consideration.

This world class technology has been made cost effective with 100 per cent localization of components. The range includes suspension products for all kinds of heavy vehicles under this program from rigid truck to high-end tippers. The 48-ton inverter bogie suspension developed for the tipper is the first of its kind being introduced. Over and above, all the bogies suspensions use rubber bolster to offer better shock absorption.

Outer rear view mirror: The mirror cluster developed by Tata Ficosa Automotive Ltd. incorporates special mirrors that offer clear visibility of all the sides of the vehicle as well as a wide range rear approaching vehicles. This will ensure good visibility of the vehicle’s immediate environs to the driver for better safety.

Radiators and inter-coolers: Tata Toyo Radiator Ltd. has developed an aluminium radiator and inter cooler optimized for cooling and fuel efficiency. For the first time a lower thickness core for radiator was used resulting in lower weight and less requirement of coolant.

Jost fifth wheel for World Truck

Jost India Auto Components Private Ltd. has supplied the fifth wheel for the Tata World Truck. The fifth wheel essentially provides the link between the tractor and the trailer. It consists of a coupling pin (or king pin) on the front of the semi-trailer and a horseshoe-shaped coupling device called a fifth wheel on the rear of the towing vehicle (tractor).

Jost has supplied a cast version which has an interchangeable kingpin size (2” or 3.5”). This fifth wheel with a kingpin size of 2” is rated at 28 tonnes. Since the Indian market traditionally uses pressed version, the development was undertaken for cost optimization. This pressed version called the JSK38DV50 has passed all the standard life tests required to ensure reliability, says a Jost spokesperson.

Jost has established a manufacturing facility in Jamshedpur to manufacture fifth wheel. The company has established a state-of-the-art manufacturing facility with a capacity to manufacture 50,000 fifth wheel per annum.

Kailash tarp solution for World Truck

Kailash Vahan Udyog Ltd. of Pune has taken its strong relationship with Tata Motors one step ahead by supplying its Cramaro tarpaulin covering solutions for the World Truck. Kailash has entered into a joint venture agreement with Cramaro of Italy to provide a world class covering solution for a world class truck from the Tata stables.

The Tarp-All solution specifically designed keeping in mind the ease of use, convenience of the operator and the tough Indian road conditions, is a perfect package for the World Truck. With strong steel structure, smooth steel rails and 650 gsm tarpaulin cover, it is a perfect product for Indian markets.

Moreover with rear extendable arms and encumbrance of only 2.1 mt, the Tarp-All allows easy and quickloading/unloading without any hindrance and provides flexibility of haulage on the return trip. In addition, the entire system can be moved to the front or rear or anywhere on the trailer, thus ensuring ease and flexibility of loading along the length of the trailer. The entire system can be easily handled by a single operator.
Kailash Cramaro tarpaulin system is suited for covered transport of foodgrains, steel coils, asphalt, sand, cement, iron ore, etc. It can be supplied according to the trailer length and truck body dimensions. The customer will also have a choice of colors.

Thus, this robust European technology at affordable Indian prices is a perfect solution for Indian transporters.

Driver display information from Continental

The World Truck instrument cluster is an intelligent electronic device with latest communication interfaces. This instrument cluster was developed at Continental Automotive R&D locations in Europe by using state of the art technologies. This is the first of its kind being developed & launched in the commercial vehicle segment in India with the contemporary features of European market.

Presently, the truck segment in India employs only Electro-mechanical gauges and does not have any intelligence built in it. The function offered by the instrument cluster of today include analogue gauges (like Speedometer for vehicle speed, Tachometer for Engine RPM, Fuel gauge, Temperature gauge, Air Pressure gauge, etc.,), warning symbols, mechanical odometer and buzzers for alarm. With this architecture, it is not possible for the driver to be aware of the exact state of the vehicle and respond proactively to avoid breakdowns.

The World Truck instrument cluster receives both digital and analog inputs via various sensors and also via communication network bus. Using this information, the instrument cluster evaluates and calculates current driving and vehicle parameters, which is displayed on the analog gauges (driven by high precision electronic stepper motors), warning symbols (illuminated by LEDs), audible warning signals and the error messages in the center display.

The instrument cluster is capable of receiving different error messages from other electronic control units in the vehicle and inform the driver by displaying them on center display. This keeps the driver informed of the state of the vehicle so that he can act accordingly. This is possible since World Truck Instrument cluster use latest communication technology called CAN (Controller Area Network).

Some of its key features are the communication network interface for other ECUs in the vehicle, fuel consumption information, display menu option in two languages (English and Hindi), clock, engine hours & error messages in center display, audible warning signals, low fuel & high temperature warning, and illumination dimming function

Human machine interface

The software for this cluster is written by using the Model Based Development System (MBDS) technology, which makes development faster. The World Truck instrument cluster also employs special software which facilitates different types of screens on the display. Using this, the driver is provided with the option of viewing different functionalities and also in different languages (currently English & Hindi language offered). It also has fuel consumption features like average mileage information, distance to empty, etc. This instrument cluster stores error information in itself so that the information can be downloaded at the service station later by service personnel using diagnostic tools. It has also the scaleable feature to meet the futuristic demands like communication interfaces with tachographs, information display for both passenger and driver, integrated telematics system, etc.

Eaton transmission for World Truck

Eaton Corporation of the US will supply transmissions for the World Truck. The company had earlier announced that it has signed a business agreement through 2014 with Tata Motors for supply of heavy duty synchronized transmissions for use on its World Truck program in India as well as global markets.

Initial transmission production will take place at Eaton plants in Tczew, Poland, and Wuxi, China, with production moving to its new facility in Pune as volumes increase.

“I would like to take this opportunity to congratulate Tata on the launch of their World Truck. We are honored to have been chosen as the transmission supplier for this program,” said Shyam Kambeyanda, Managing Director - India, Eaton.
“The launch of the World Truck Platform marks an important milestone in the Indian CV industry as global technology is offered as a domestic solution. We are very happy to be associated with Tata in making this a reality,” commented Pavan Pattada, Executive Director - India, Truck Group, Eaton.

Eaton and ZF have been chosen to supply transmissions for the World Truck.

ZF transmissions for TDCV trucks

Agreement valid for four years
Tata Daewoo Commercial Vehicles (TDCV) and ZF Friedrichshafen AG have concluded a long-term supply contract, under which TDCV trucks will be equipped with manual ZF transmissions of the Ecosplit type and the automatic transmission system AS Tronic. This provides a solid framework for the already existing business relationship between ZF and TDCV.

The term of the agreement is initially four years until the end of 2013.

The TDCV trucks of the “Novus” and “Worldtruck” model ranges, which are equipped with ZF technology, are mainly sold on the Korean market, as also on the export market.

TDCV is the second largest commercial vehicle manufacturer in Korea. Since 1986, ZF has been in contact with the company, which is part of the Indian parent company Tata Motors.

This long-term supply agreement places the supplier relationship on a more solid framework. Standard versions of the heavy truck ranges “Novus” and “Worldtruck” have the ZF-Ecosplit transmission on board. The AS Tronic automatic transmission system is offered as an option. The supply contract is initially designed for a period of four years.

In the heavy truck segment, TDCV recently recorded a market share of more than 30 percent in Korea, with an annual production of about 3,000 units. The TDCV model ranges are also exported to South Africa.

“This long-term agreement is a gain in continuity for us this is positive news for our production location in Friedrichshafen, which is severely affected by the global crisis phenomena”, says Rolf Lutz, Group Executive of ZF’s Commercial Vehicle and Special Driveline Technology division.

The manual commercial vehicle transmissions by ZF have proven to be most successful in tough practical use: The Ecosplit model range features economy, durability, and it is easy to operate. The automatic commercial vehicle transmission systems of the AS Tronic family have proven particularly economical. They transfer engine power optimally to the drive axles and keep the engine in an economical speed range which considerably reduces fuel consumption.

Ashok Leyland net at Rs. 190 crores despite fall in vehicle demand

Market leadership in bus segment retained
Withstanding a 33 per cent contraction in demand for medium and heavy-duty commercial vehicles, Ashok Leyland registered a net profit of Rs. 190 crores during 2008-09, keeping intact its profitable track record of 60 years. On a reduced sales volume of 54,431 vehicles against 83,307 units in 2007-08, the sales turnover is at Rs. 5,981.07 crores (Rs. 7,742.58 crores), with other income contributing Rs. 49.62 crores (Rs. 57.61 crores).

Faced with a steep fall in demand, Ashok Leyland curtailed production by resorting to lesser number of working days starting November 2008, which has brought down operating costs, contributing to lower “other expenses” at Rs. 493.21 crores (Rs. 541.20 crores). Employee costs during the year were contained at Rs. 566.18 crores (Rs. 616.09 crores). However, financial expenses rose to Rs. 118.71 crores (Rs. 49.74 crores), reflecting higher borrowings to meet capex commitments, higher working capital requirements and higher interest rates.

Profit before tax was lower at Rs. 208.45 crores (Rs. 638.15 crores) with income-tax claiming a lower Rs. 12.45 crores (Rs. 161.84 crores) and fringe benefit tax Rs. 6 crores (Rs. 6 crores). Net profit is Rs. 190 crores (Rs. 469.31 crores).
Analyzing the composition of vehicle demand at a press conference in Chennai, Mr. R. Seshasayee, Managing Director, Ashok Leyland, said: “One disturbing trend in the segmental shift is the steeper fall in demand for higher capacity vehicles such as tractor trailers and multi-axle vehicles, at least temporarily, retarding the modernization of India’s vehicle composition. These are also segments where Ashok Leyland has a stronger presence and the maximum model options. This segmental reversal and the relatively robust demand in the eastern region impacted the company’s goods volumes”.

The first six months began normally with just two per cent drop compared to the previous year. The fall in the second quarter was quite dramatic. But this fall was expected as there is cyclicality in this industry. “We had too many good years, and one would have expected that the cycle must correct itself. But clearly the suddenness and severity of this downfall was completely unanticipated. October 2008 saw a 65 per cent drop in volumes, and we ended the whole year with a drop of 35 per cent”.

He said the redeeming feature was the bus demand which was down just 9.7 per cent. The company improved its market share in buses by 0.5 per cent and retained the No.1 position.

Overall, the share of non-cyclical business moved up to 50 per cent from 34 per cent in 2007-08, with the engines business fetching a revenue of Rs. 404 crores (Rs. 204 crores). This represented a higher volume of genset engines (11,264 units) and transformation of the business stream from mere trading in engines into ‘the Power Solutions Business’ through greater value addition.

Mr. Seshasayee further observed that the slowdown forced a quick redrawal of the capex plans. Investment plan for 2009-12 has been scaled down from Rs. 3,000 crores to Rs. 2,000 crores, yet protecting product development outlay. While the additional 20,000 engine capacity at Ennore is on ground and the Ras Al Khaimah bus plant is operational, the Uttarkhand unit will go on stream with an initial capacity of 50,000 vehicles by the end this fiscal.

He was happy to point out that the various austerity and efficiency improvement measures resulted in a saving of Rs. 90 crores. “We have also re-built a few hundred vehicles which were lying unsold in the stockyard into saleable units. This was a massive rebuilding program which was unprecedented and was successfully carried out”.

Work on the company’s joint venture with John Deere for construction equipment is in progress. As for the light trucks JV with Nissan, with respect to the various products, development activity is on track and on schedule. Under consideration is optimization of investments by making use of the existing facilities of both the partners.

The two partners are also evaluating the possibility of enlarging the product range in the manufacturing plan, including some additional products from Nissan’s global portfolio of light commercial vehicles. The economic slowdown and the delay in land acquisition together have pushed the project dates back around six months. The current assumption for start of volume production is 2011.

The Managing Director said that the company has developed two versions of the new generation Neptune engines in partnership with AVL Austria: the 4 cylinder engine in the 160-230 hp range and the 6 cylinder engine in the 270-380 hp range. The Neptune engine will power the modern truck range to be built on the modular UNITRUCK platform, to be launched in April 2010. The Product Development at Ashok Leyland is currently under migration to GENMOD, the transformational matrix management process with breakthrough performance targets for future vehicles.
Ashok Leyland is also extending its lean management initiatives to Marketing. Under its new working capital management initiative, pipeline inventories are being reduced through various measures, including warehouse rationalization.

The company has so far received orders totalling over 2,800 buses out of the total orders for 5,330 buses released under JNNURM. Out of over 14,000 buses sanctioned, tenders have been released for over 11,200 units.

Touching on the 2009-10 outlook, Mr. Seshasayee said the overall recovery is dependent on revival of economic activity and political stability, re-start of stalled infrastructure development projects, fillip to the housing and construction segments and rapid implementation of the JNNURM-funded projects.

“For our country, the worst seems over. For the industry, demand for medium and heavy commercial vehicles can swing in single digits in the current year – the upward swing predicted upon a stable, progressive and responsive government at the Centre”, he added.

Eicher E2 Plus range trucks launched

E2 Plus, the new series of light and medium duty trucks just introduced in the market by Eicher Trucks and Buses, is the result of the company’s constant endeavor to improve and upgrade products to benefit customers.

The E2 Plus truck series vehicles which are available in all standard configurations in BS-II and BS-III models are built on the value proposition of improved mileage and performance over the current Eicher E2 Trucks, a trend-setting series launched by Eicher in 2005.

The E2 series offered the customer increased fuel efficiency, lesser gear shifts, faster turnaround time, more pulling time and better driver comfort. Hence, the E2 series became known in the industry as the ‘Mileage ka Badshah’.

Speaking at the launch of the new series trucks at the company’s Hyderabad dealership, Mr. G. Sekar, Director - Sales, Eicher Trucks and Buses, said: “Eicher products are known in the market for their overall low cost of ownership, and the reason for this can be found in what our customers term as the Eicher advantage. At the core of the Eicher advantage is the vehicle’s highly-rated fuel efficiency. As a company our efforts are aimed at providing value to our customers, and customer acceptance of our products is well reflected in improved sales.”

He explained the values offerings of the new series, “The Eicher advantages in an E2 Plus truck will directly translate into better operating economics for the transporter due to greater reliability, faster turnaround and also more trips with more load. This way the transporter not only earns more but even saves more. The E2 Plus series of trucks is our next step in setting new benchmarks, with products that not only offer enhanced fuel-efficiency but also more safety, drivability, comfort and sturdier performance.”

The E2 (Mileage Ka Badshah) now comes with many more features and is therefore positioned as E2 Plus. While completely retaining the mileage and stronger transmission advantage, E2 Plus in addition offers customers new features – enhanced safety, greater reliability, more comfort and growing aesthetics.

A stronger driver cabin reinforced with upper and lower front crash guards, cross-members and a sturdy metallic bumper along with the powerful, clear head lamps all together give an edge of greater safety. A larger capacity air filter enhances engine life and, along with the heavy-duty transmission and a strong cargo body with super-structure, metallic fuel piping, ensure much greater reliability in operations.

A power steering (optional), linen seat covers, soft molded roof liners and a mobile-charger point accord greater comfort while driving, and a new front grill, rectangular head lamps, electronic combination meter, pleasing interiors and trendy door trims give a refreshing new look to the vehicle.

Bosch electronic control units production in India begins

Greater focus on Indian operations

With individual economies across the world witnessing a technological revolution, the role of automotive electronics in ensuring higher safety for both men and material is expanding. In automotive electronics, Bosch the German giant is both a major player and a technology leader. There is no vehicle in the world that runs without some Bosch product or the other, thanks to the advanced technology involved.

In the Indian automobile industry, which is also currently witnessing revolutionary changes with technological advancement, Bosch, the largest auto parts supplier in the country, made its larger presence by commissioning its electronic control unit (ECU) for diesel and gasoline fuel injection systems at Naganathapura in Bangalore. Bosch has already invested Rs. 60 crores in this new facility, and proposes an additional investment of Rs. 68 crores next year. In terms of facilities provided, the new plant is most environment friendly.

So far the company was meeting the requirements of all the major OEMs in the country by importing ECUs from its overseas operations, including those in China and Europe. With an appreciable increase in automobile production in India since last few years, Bosch realised the urgent need to establish its indigenised manufacturing unit for ECUs at Naganathapura not only to meet the growing demand of its customers but also to ensure a quicker delivery at lower cost. However, there is no compromise on the quality of Bosch ECUs produced in India. The Indian production facilities indeed conform to the world standard similar to the company plants in Hungary, Mexico and China.

For its Indian operations, Bosch has set up its fully-owned subsidiary, Bosch Automotive Electronics India Pvt. Ltd., which was inaugurated on May 26 in the presence of the company’s valued customers.
Addressing a press conference after the inauguration, Dr. Bernd Bohr, Chairman, Automotive Group, and Member, Board of Management, Robert Bosch GmbH, Germany, said it was an important milestone for the company to establish indigenised production facilities for ECUs. This is in line with the Bosch goal of expanding indigenous operations in India initiated in 2006 with the introduction of the Common Rail Injection System (CRI). The Bangalore and Nasik plants are very well part of the company’s European export activities.

Electronic control units from Bosch integrate all the required functions of modern engine control in a single unit. The main components of the ECU are micro-controller with software applications and power stages. Functions are integrated in a compact chip set which controls the fuel injection and ignition for motor vehicles. The software for the ECU was specially developed for the requirements of emerging markets. The first batch of ECUs produced at Naganathapura will be supplied for Tata’s Nano car.

According to Mr. Bohr, as a strong believer in R&D activities, Bosch has increased its R&D spend from 10.2 per cent in 2007 to 12.3 per cent of total sales in 2008 despite general shrinkage in global demand. Since a negative impact on sales is feared in the current year, the company has worked out an innovative strategy by applying for more patents and by introducing new products. It will be also be introducing electronic brake system (EBS) through its Pune facility by the end of this year.

He explained that more patents and new products introduced are among the main factors that have driven the growth of the company all along. With 32,500 associates in R&D worldwide, the company has to its credit 3,850 patent applications in 2008, which is the highest so far. In emerging markets, it keeps enhancing local management, development and production. In automobile technology, it employs more than 25 per cent of its 25,000 engineers worldwide in Asia/Pacific region.

Mr. V.K. Viswanathan, Managing Director, Bosch Ltd., in his address, said that in 2008, the company, with six subsidiaries and an employee strength of 18,030, achieved a turnover of Rs. 6,477 crores. Established in 1951, Bosch Ltd. emerged as the largest auto component supplier in India. All its plants are TS 16949 and ISO 14001 certified.

The company has been recognised as a major contributor to the Indian industry with several Awards, including those for innovation. Some of the Bosch innovations in the low price vehicle segment include gasoline EMS, diesel CRS, glow plugs, starters & generators, brake system, etc. With local competency, together with global strength, Bosch is the undisputed market leader in many fields.

Though the financial global meltdown has affected the overall growth of the Bosch Group, Bosch Ltd. achieved an eight per cent growth in 2008 as compared to 2007. While the company registered a CAGR of 20 per cent in sales, exports grew by 18 per cent, Mr. Viswanathan added.

Dr. Volkmar Denner, Member of the Board of Management, Robert Bosch GmbH, in his brief address, said the Bosch automotive electronics has multiple applications in the automotive sector. Since the Bosch strategy is local for local production with Indian application engineering, it has localized production of ECUs too. The Naganathapura plant is expected to produce 2.5 million pieces of ECUs with an employee strength of 300 until 2012.

Innovative products

Over the past few years, Bosch has been introducing its innovative products to the Indian market as part of its increased commitment to India. The company has already introduced the Common Rail Injection System for diesel vehicles, which has revolutionized the Indian diesel car and SUV markets. The system will also be made available in the commercial vehicle segment in India in the near future.

In the gasoline segment, the latest Bosch technology is in use in the Tata Nano. Another Bosch innovation, the Start-Stop System, which can save fuel consumption of 8-12 per cent, is already in use in Mahindra’s Scorpio and Bolero models. The next in the offing is the anti-lock braking system, which will be manufactured in India from this year.

Apollo Tyres completes acquisition of Vredestein Banden BV

With all regulatory approvals in place and consent from the Judge of the Dutch Courts, Apollo Tyres Ltd. has concluded the formal process of acquiring a 100 per cent stake in the premium European tyre manufacturer Vredestein Banden BV (VBBV), based out of the Netherlands. The acquisition is being made from the parent company, Russia’s largest tyre manufacturer Amtel-Vredestein NV (AVNV), which was declared bankrupt on April 29.

An independent tyre company since 1946, VBBV became a part of AVNV in April 2005. AVNV’s bankruptcy has not affected the Netherlands-based VBBV, which continues to remain a viable entity with a ring-fenced financing arrangement and a turnover of approximately Euro 307 million for 2008.

Vredestein’s manufacturing unit is located at Enschede, an 1.5-hour drive from Amsterdam. Over 70 per cent of the 5.5 million tyres manufactured every year are high performance, high speed passenger car tyres with speed ratings of up to 300 kmph and sold primarily in the European Union. Vredestein enjoys high brand recognition in Europe for its performance tyres and also manufactures a second brand called Maloya.

The acquisition strengthens Apollo Tyres’ ongoing plans for the European market and provides Vredestein with opportunities to leverage its proximity to a larger industry player in terms of costs, people, products and access to markets beyond the European Union.

Vredestein has an established network of sales subsidiaries spanning key countries in the EU and the US. Over 30 per cent of VBBV’s products are sold in Germany, with the rest being sold across the EU and other parts of the world, including the US and the Middle East.

“This is a strategic alliance for us and will bolster Apollo’s plans for its European customers,” commented Onkar S. Kanwar, Chairman & Managing Director, Apollo Tyres Ltd. “The fit between the two companies spans the entire spectrum of R&D, products and people to manufacturing and markets. It is a synergistic match and our aim is to increase Vredestein’s global value in the coming years.”

Vredestein Banden BV currently employs around 1,500 people and is managed by a core group of senior managers, with vast experience in the tyre industry and a strong track record of profitability. The company has constantly notched a CAGR of 8.5 per cent in revenue over the last five years, a figure that is significantly higher than the industry growth rate in Europe.

“This alliance is a win-win combination for both companies,” adds Vredestein Banden BV’s Chief Executive Officer, Rob Oudshoorn. “We will bring to Apollo our edge in passenger car tyre technology alongside an understanding of the European market. At the same time, Apollo can offer us access to the non-European markets, valuable manufacturing expertise and assistance with lowering costs by leveraging the purchasing power of a larger entity. I have closely watched Apollo’s acquisition and integration with Dunlop South Africa, and the way they went about the merger speaks highly of the Apollo management’s outlook on people and implementing best practices.”

Oudshoorn is also positive on the next steps: “This partnership with Apollo will bring the desired level of stability to our operations and our people. We have gone through a period of uncertainty, and I am positive that we now have the right platform to truly harness the growth potential, of which Vredestein is capable in the future. We have the people, we have the technology, and now we have the right partner.”

Reinforcing Oudshoorn’s thoughts, Neeraj R. S. Kanwar, Vice Chairman & Joint Managing Director, Apollo Tyres Ltd., observed: “We will continue to run Vredestein Banden under the leadership of the current Vredestein management. As is our norm, the idea going forward is to ensure we leverage on each other’s strengths for combined benefits and better products and services for our customers.”

Neeraj Kanwar added that a comprehensive integration process would begin within a month. Areas of particular focus will be research and technology, products and brands, corporate purchase and finance. At the end of the process, which would involve managers from both companies, a consolidated plan for the short and medium term would be put into action.

The acquisition process began in November 2008 when a global bidding process was initiated by Amtel Vredestein NV. The process culminated with the signing off on all requirements, overseen and authenticated by the Supervisory Judge in the Almelo Court in the Netherlands.

Nomura, CMS Derks Star Busmann and KPMG acted as advisors to Apollo Tyres Ltd. for the transaction. J A D M Daniels of Daniels Huisman acted as trustee of AVNV.

Michelin truck service centre on Delhi-Jaipur highway opened

Michelin has opened the first of its kind Michelin truck service centre (MTSC) at Kotputli on the Delhi-Jaipur highway. The one-stop shop, equipped with state-of-the-art facilities, including computerized truck tyre alignment, balancing and repair machines, offers end-to-end tyre-related services for trucks.

The MTSC was inaugurated by Mr. Jean Paul Caylar, CEO, Michelin India, in the presence of Mr. Philippe Neyrat, Head Sales & Marketing, and Mr. Harkesh Jaggi, Manager Distribution, and other officials.

MTSC helps consumers reduce maintenance costs and optimize benefits from Michelin and other branded radial tyres. The opening of the MTSC facilitates easy availability of Michelin products and services along India’s highways and will help to meet the soaring demand for Michelin radial tyres.

On the occasion, Mr. Jean Paul Caylar said: “We see India as an economy developing at an accelerated pace, with focused growth in infrastructure. The highways across the country carry heavy traffic. Therefore, that is where the demand for a service centre was inevitable. As a beginning, we are opening MTSC at Kotputli, which will bring to the end users and fleet owners sophisticated services at competitive prices in minimum time”.

In keeping with its commitment to India, Michelin offers services mainly for radial tyres, which help contribute to save fuel, up to 10 per cent. Truck radials reduce the cost of the fleet owner by cutting his fuel bill and the overall tyre bill.

The extra benefits from the MTSC are reduced vehicle operation cost, a longer life for tyres through proper repair and alignment, as well as cut in turnaround time, ensuring higher productivity for fleet owners.

The MTSC is spread over an area of around 5,000 sq. ft. and has customer waiting area, showroom for display, etc., an exercise undertaken by Michelin for all its MTSC outlets. This is an internationally successful format, particularly in the Asia Pacific region.

Ceat’s first wheel management centre at Sankagiri

As part of its aggressive growth plans, Ceat Ltd. has launched its first Wheel Management Centre (WMC) at Sankagiri in Tamil Nadu for truck and bus radial tyres. Sankagiri has the potential of 7,000 new tyres per month of which 30 per cent are radial tyres.

With this launch, Ceat has further enhanced its reach to the masses in Tamil Nadu. The company is looking forward to launch 20 stores in India by 2010. The newly-opened centre will be a one-stop shop for truckers for buying new tyres and retreading.
Speaking at the inaugural function, Mr. Arnab Banerjee, Vice President - Sales & Marketing, Ceat Ltd., said: “Tamil Nadu is a very competitive market for radial tyres, and we are pleased to launch our first Wheel Management Centre for truck and bus radial tyres at Sankagiri. The launch of this facility will help Ceat to reach its masses and achieve its targets. Ceat has started with a training centre for educating customers on new developments in trucking and wheel management and train them in various services like wheel alignment, greasing, TBR repair, nitrogen inflation, collection center for retreading of tyres and other regular services of tyres available at WMC”.

The WMC is typically of an area of around 3,000-5,000 sq. ft. Each store would provide new Ceat tyres, wheel alignment, greasing, TBR repair, nitrogen inflation, collection center for retreading of tyres and other regular services of tyres.

Castrol India’s improved performance

Castrol India Ltd. fared well in the first quarter ended March 31, 2009, even in the challenging economic environment. Net sales for the quarter were up by three per cent to Rs. 506 crores compared Rs. 493 crores in the same period last year. Profit before tax was flat at Rs. 117 crores, whilst profit after tax was up five per cent at Rs. 76 crores (Rs. 73 crores).

Commenting on the first quarter results, Mr. N. Kshatriya, Managing Director, said: “Considering the acutely adverse economic environment in January-March 2009, with slowdown across industries, the company’s financial results are satisfying, especially in view of the fact that Q1 2008 as a reference base was a record first quarter. In spite of significantly reduced volumes, we maintained profits and improved cash flow. Volumes declined during the quarter because of reduced commercial transportation and manufacturing activity, key drivers for lubricant consumption. However, the unit margins improved with the benefit of lower material costs, better product mix and improved efficiencies in value chain. With aggressive cost action, the bottom line was protected”.

The company’s various margin retention and cost control initiatives are already paying dividends. Its continued focus on the personal mobility segment of cars and two-wheelers is yielding results.
Castrol continued its focus on bringing the benefits of “synthetic” technology to the Indian lube consumer through its flagship brand CRB and CRB Turbo. It also undertook two high impact, innovative promotional activities – Power1 Passion Hunt for passionate bikers and Golden Spanner promotion for car mechanics.

Building on its cricket credentials, the company successfully launched an innovative Castrol Index website. In the business customer space, the company continued to strengthen its existing relationships with key auto manufacturers.

The company has joined hands with Tata Motors to co-engineer a special oil for its new Nano. Castrol oils will be used as first fill as well as service fill for all Nano cars. It also strengthened its position in the new European car segment with a new partnership agreement with Volkswagen.

Castrol continues its efforts for promoting road safety and is leading the corporate sector in developing new standards of road safety for its contractors and employees. In recognition of this effort, the company was awarded the WIAA Road Safety Award for “outstanding efforts in promoting the cause of road safety.”

Commenting on the future outlook, Mr. Kshatriya observed: “Whilst demand is showing some signs of revival and trade is correcting its inventory positions, with overall market under significant pressure, we might see weakness in full year volumes. However, with the strength of our brands, distinctly superior delivery of our products and strong customer relationships, we remain confident of growing our financial performance for the year”.