MAN is back in full FORCE: To launch buses by year-end

By K. Gopalakrishnan

On April 30, 2006, the joint venture of FORCE Motors with the German truck major MAN rolled out the first few trucks made in India. There was high expectation in the Indian market from the MAN-FORCE JV. The new truck facility at Pithampur was set up at an investment of Rs. 700 crores and with capacity to manufacture 24,000 trucks, of which 12,000 were to be exported and another 12,000 sold in the domestic market.

It’s been three years since the roll-out of the first unit, and MAN FORCE has till date manufactured close to 1,500 trucks which includes both the domestic market and exports. The JV ran into product specification related issues. The European standard of cab fitments and power density raised the products cost to unacceptable levels in the Indian market.

And just when everyone started doubting the future of this JV, the company has bounced back and announced the launch of an expanded range of trucks catering to the requirements of the Indian market. The fully indigenised new range of trucks fitted with the best-in-class aggregates and conforming to MAN standards are competitively priced.

Mr. Sudhir Mehta, Managing Director - Commercial of MAN FORCE Trucks Pvt. Ltd., said: “We have gained valuable experience in the last 18 months, of manufacturing, selling and supporting over 1,500 units of the hitech, MAN CLA range of vehicles, in the Indian market. We are now poised to enter the next phase, of ‘mass marketing’. It is our aim to gain a significant market share, in the haulage trucks market. The ambitious plans of our company are aimed at establishing a strong presence in the full spectrum of the HCV market in India. Plans and actions are to gain dominance in select segments and to achieve large volumes in the market over the next five years.”

To know about this complete turnaround, I met Mr. Abhay Firodia, Chairman of MAN FORCE Trucks Pvt. Ltd., the man behind the turnaround of the MAN FORCE Trucks JV in India. At 65, Mr. Firodia, is raring to take on competition. There is evident confidence right from people working at the shop floor to the top management that the worst is over, and they can look forward to exciting times ahead.
But before we get into what went wrong with the JV, let’s look at the brighter side of things. It all started in 2003 when FORCE Motors purchased technology from MAN to manufacture engines and cabs of heavy trucks in India. But identifying a potential opportunity, MAN offered in 2005, to invest and formed a joint venture with FORCE Motors, for using the base created by FORCE Motors to export trucks with MAN technology from India to various parts of the world, and also sell in India.

The initial investment planned was Rs, 700 crores with FORCE Motors holding 70 per cent of the JV and MAN 30 per cent. A new plant was established at Pithampur right next to the Force Motors facility, and the first few trucks rolled out of the facility on April 30, 2006. The JV with active involvement of German engineers and the intended use of the MAN brand found that the trucks configured were required to be equipped to European levels of power and comfort.

Mr. Firodia said: “The MAN FORCE Trucks plant was set up in record time, with the necessary infrastructure, tooling, vendor development and the design and development of a complete range of products for the Indian market, all these were done in a short time of 2½ years. We were ready by the end of 2006 when the JV was formed to ramp up volumes. As we started selling our trucks, we were facing resistance mainly due to a few factors. In India the customer expectation of a truck is mainly from the efficiency of the drive line and not much is expected from the cab interiors. We had initially offered a product which had a robust driveline but also a comfortable cab and other peripherals adhering to MAN’s global standards of quality, comfort and safety, which the Indian customer was really not keen on. We were clearly not competitive in terms of pricing as we were priced 25 per cent more than competition”.

“Another aspect which needed some correction was in terms of the power density which was at European levels. In India typically the mass market trucks for haulage purpose run on 160 to 180 hp engine, whereas the company offered 280 hp engines. Of course, a truck with 280 hp is more powerful and can cover distance in a much shorter time but the downside is with higher power comes lower fuel efficiency and this became a point of consideration which had to be corrected. We were clearly out of the race in the mass market segment. Our original concept was to get into the mass market products but it so happened that because of the initial pricing of the trucks we got pushed into the niche segment which is the high powered ODC trucks and the specialised tipper for mining applications and this restricted our foot print in the market”, Mr. Firodia adds.
“MAN believed that they wanted to maintain premium standard in their vehicle out of genuine adherence to the European standards of safety and comforts and aesthetics. Initially it was tough to convince the MAN team to help them understand the Indian requirement but we eventually reached a common understanding of the issues involved and evolved a joint response”.

“We examined the problems in a very constructive manner. MAN has a great deal of confidence in the Indian market, and has a constructive approach in leveraging the strengths of this very unique market. A high-level team from MAN and FORCE Motors came together and brainstormed over many months and finally achieved what was required for the Indian truck market”, he added.

Mr. Stefan Holzmann, now MD-Technical of the JV, had an important role to play in evolving a close understanding of the realities of the Indian market requirement.
The product specs had to be aligned to suit the Indian customer. Some of the accessories and frills, which were part of the initial trucks launched, have been done away with. The company had to work on the power rating and find a more acceptable level.

Speaking to MOTORINDIA, Mr. Holzmann said: “A solution has been found maintaining the highest standards that MAN adheres to, while removing many of the add-ons from the truck. The power density has been appropriately moderated to provide top class fuel efficiency without compromising reliability. For MAN reliability is religion”.

Another major achievement was in the area of localisation of components. In fact, the trucks are 95 per cent localised, including the engines, transmissions, axles, cabs, interiors. This is a huge advantage which Force Motors brings to the JV, thanks to the strong engineering capabilities of the company. It was not just about indigenising but Indianising the complete range of trucks.

According to him, with all this restructuring, “we have arrived at a product configuration and pricing strategy which is strongly aligned to the Indian market. This wouldn’t have been possible without the understanding and support of MAN”.

MAN has been very supportive of this corrective action. In fact, to reinforce its commitment to the India JV, MAN even increased its stake from 30 per cent to 50 per cent last year. The engineering effort that the MAN team has put in has been very constructive. The MAN engineering team realised the need to create a product which should succeed in India.

“With all the restructuring behind us, we have a comprehensive range of trucks to offer the market now. In terms of specifications, it is way above the other products available in the market but in terms of pricing it is almost on par with competition”, claims Mr. Firodia.

MAN FORCE offers the CLA series (Cargo Line Asia) of trucks in Euro 2 and Euro 3 options. The new range will include the CLA 25.220, 6-wheeled, 25-ton long-haul trucks, and the CLA 40.220 heavy duty tractors which are powered by 220 hp 6-cylinder, MAN D-08 series diesel engine. Each aggregate of the truck such as the engine, gearbox, axle and the chassis meets the highest MAN standards of reliability, efficiency and performance.

In the tipper segment, the company has introduced top quality tippers, for every application, from 18 cubic meter ‘mining’ tippers with 8x4 configuration to 12 cubic meter ‘on-road’ construction tippers with 4x2 configuration. The only product which the company is not addressing at the moment is the 4x2 rigid trucks for haulage purpose.

Manufacturing and aggregates

While most manufacturers are moving towards assembling of key aggregates, MAN FORCE has managed to create the highest level of engineering capabilities to manufacture all key aggregates in-house. Mr. Abhay Firodia says: “You cannot remove the spots of a leopard. That’s in our DNA. Our engineering capabilities are the biggest asset of both MAN and FORCE Motors and it gives us so much more confidence in the products we manufacture and sell”.

As mentioned earlier, MAN FORCE Trucks Pvt. Ltd. has established a full-fledged manufacturing facility in Pithampur. The facility is built with a capacity to manufacture 24,000 units annually. There are 3 major units within the facility. The first is engine and axle manufacturing facility, the second is the vehicle assembly line which has the chassis assembly, trim line and vehicle testing facility and the third is the export unit which is called the Truck in Box unit(TiB) where trucks are packed in knocked down condition and exported to markets like South Africa, Malaysia and Indonesia. The manufacturing facility, certified to TS 16949: 2000, has been built as per MAN’s global standards and systems.

With regard to engines, currently the trucks are fitted with the MAN 08 Series of diesel engines which are manufactured at the MAN FORCE facility. It currently offers 220 hp and 280 hp engines based on the products and market requirement. There are plans to introduce common rail Euro 3 and Euro 4 engines in the near future.
Axles are also manufactured in-house as per MAN’s technology. The company is also offering Meritor axles in certain models like in the 25.220 haulage trucks and the newly launched 40.220 which is a Tractor Trailer 4X2 configuration and this will also come with Meritor axles. There is also a 40 tonner 280 hp engine which comes with the MAN axles.

Gear boxes are manufactured at the adjacent FORCE Motors facility with licence from ZF. MAN FORCE offers both 6-speed and 9-speed gear boxes. The cab for the MAN FORCE trucks is again built by FORCE Motors. Currently the cabs offered for the Indian market are the standard yellow color units with the distinct MAN truck identity. For exports it is done as per customer specifications, like for example the trucks exported to Indonesia fitted with white cabs. Cabs are available with flat, normal and high roof with sleeper berths.

In fact, Jaya Hind, one of the group companies of FORCE Motors, is also establishing a tipper fabrication facility at Pithampur right next to the MAN facility. The tipper hydraulics are being sourced from Hyva and tipper fabrication will be done at this facility.

The new range of trucks has gone into production and is on display at various dealer locations across the country. MAN FORCE is currently doing a series of road shows in different parts of the country. By August it will have these products in volumes across India. The target is to hit a volume of 500 trucks per month by the end of this year.

Mr. Firodia observed: “Performance of our trucks was never an issue. Our trucks have performed brilliantly so far, particularly the tippers and tractor trailers. The key issue was to build volumes – for which we needed competitive specifications and pricing. This aligned, we are ensuring to ramp up our after-sales service, which is very important in the truck segment. The company has now established a strong country-wide dealer network, with excellent stocks of spare parts throughout the country, at 50 locations, in all relevant areas. Also 100 Mobile Service Vans are commissioned, to provide day and night service throughout the country”.

Exports

When the MAN FORCE JV was signed in 2005, both the companies saw huge opportunity for export of trucks to other emerging markets like South Africa, the Middle East and South-East Asia. In fact, out of the total capacity of 24,000 units, 50 per cent were meant for export. But due to the uncertainty in the truck business in the domestic market and also due to the global turmoil, particularly in the CV segment, exports were hit. The JV has so far exported over 300 units, mainly to South Africa, Malaysia and Indonesia and a few units to Russia and China.

Trucks are exported both as fully-built units and knocked-down kits or TiB (Truck in Box) as mentioned earlier. With better clarity in the domestic market, there is renewed thrust on exports, says Mr. Firodia.

Another important area which the JV wanted to focus was on component sourcing from India. This has also taken the backseat due to reasons mentioned above. There are some parts which MAN is already sourcing, like brake parts and crank shafts from Indian suppliers. There will be more intensive effort in this direction.

Entry into bus market

In 2006 MAN’s Neoman Bus Group had announced setting up of a separate joint venture for bus business with Force Motors. A letter of intent on the joint venture for production of chassis and complete buses for the Indian and Asian markets was signed. But in the last couple of years, with the main focus on the truck project, the bus project did take a backseat.

But with better clarity in the truck project, the company is now seriously working on the bus project. “We are already working on the prototypes and will be launching our buses before the end of the financial year 2009. The company is working on both the city and inter-city buses. Globally MAN is a very strong player in the bus market. The plan is to work with a dedicated body builder for building the bus bodies as per MAN designs”, said Mr. Firodia.

To sum up, the MAN FORCE JV which started well, ran into trouble later due to product cost issues. The good thing is that both partners came together and have worked enthusiastically to solve the issues and align the products to suit the Indian market. For the current year the JV is targeting a sale of 3,000 trucks in the domestic market and 1,200 trucks overseas.

“Now there is complete consensus on the way forward. There is excellent team work, not just between the departments, namely, manufacturing, sales and marketing, R&D, procurement, service but also between MAN and the FORCE Motors teams. And, as a result of the realignment of perspectives, there is total clarity and commitment. Both MAN and FORCE Motors are committed to the project. We will come back with thumping success”, Mr. Firodia added.

How MAN Force could achieve high indigenisation level

The MAN Force JV has spent a lot of time and effort in vendor development. Today the company has achieved close to 97 per cent level of indigenization. It has worked very closely with its vendors in the development process and many of them have been taken to MAN’s manufacturing facilities in Germany to understand the technology and engineering capabilities. MOTORINDIA spoke to a few component manufacturers to get their perspective on their association with the MAN Force JV.

Simplex Metalica

Simplex Metalica manufactures rolled chassis frames for MAN Force trucks. The company started manufacturing long members of Shaktiman Trucks (MAN Design) for its vehicle factory in 1975, followed by complete chassis frame assembly for Nissan Trucks also for Defence Vehicle Factory. Simplex has the capacity to manufacture truck chassis long members both by rolling process with the cold forming mill and by pressing on 10-metre hydraulic presses for capacity ranging from one ton to 50-ton trucks.
To cater to various vehicle manufacturers’ needs, Simplex at Jabalpur has created the capacity to manufacture long members for 60,000 vehicles per annum in the plant comprising of modern press shop, cold forming mill, CNC punching machines, robotic plazma cutting, paint shop with pre-treatment plant, baking ovens, etc., with a covered area of 125,000 sq. ft. spread over six acres of land. This capacity and indigenous technology created by them has helped to develop and indigenise long members for Swaraj Mazda, Volvo Eicher commercial vehicles, Vehicle Factory and MAN Force Trucks Ltd. The development of prototypes for different models in the least time and at the lowest cost and meeting customers’ requirement of small lot sizes in different models incorporating new changes have mainly accounted for the success of Simplex.

Mr. Prashanth Shah, Director, Simplex Metalica, says: “The development of a critical load bearing component of a world class truck was made easy because of the team work approach of MAN Force. Particularly the visit to MAN’s facility in Germany was an eye-opener for us. It broadened our horizon and helped us understand the superior technologies available for manufacturing chassis long members. Force Motors has a world class tool room. The support received from MAN Force for tooling made the whole developmental work easy. We have been able to develop as many as 33 types of chassis long members having payload of from 15 tons to 49 tons, in a short span of time”.

Pinnacle
Pinnacle Industries Ltd. has been supplying seating systems, steering wheels, side panels and other interior parts to MAN Force Trucks Pvt. Ltd. Pinnacle is one of the largest commercial vehicle seating companies in the country and its plant is located very close to the MAN Force factory at Pithampur.

MGI Coutier Exotech Industries

MGI Coutier Exotech Industries Ltd. (MEIPL) was well poised to meet the expectations of MAN Force in terms of technology and quality required, thanks to its European connections of the last 10 years.
The development of the braking tubing system was entrusted to MEIPL and its group company Voss Exotech Automotive Ltd. (VEAPL) on the basis of their track record of having successfully implemented European Standards in the field of brake tubing and connectors in India with manufacturers like Tata Motors and Ashok Leyland.

Mr. Umesh Kothari, Managing Director of MEIPL, observes: “The entry of MAN Force trucks is a major event in the commercial vehicle industry of India. Till date, the truck industry does not have an international player in the volumes segment. The development phase was a critical one as the mandate was to meet the MAN technical standards, at the Indian price tag. MAN experts played a crucial balancing role to ensure that Indian engineering would meet their requirements”.

Tool Holder

Tool Holder Private Ltd. at Belgaum in Karnataka has been manufacturing gear shifter forks and other critical components for Force Motors since 1997. The company has developed two very critical components for MAN Force trucks, shifter forks and engine bearing caps. Both parts are made out of SG iron route and then machined to the critical dimensions as per the MAN and ZF drawings.

The development involved close co-operation with the MAN Force Product Engineering Group right from the beginning to decide on the machinery and tooling required for the project, says Mr. Dilip Bhagwat, Managing Director of Tool Holder.

“The patterns for engine bearing caps and gear shifter forks were made using the 3D images provided by MAN Force. The patterns suitable for shell castings were manufactured and SGI 600 / 3 castings for shifter forks and engine bearing caps were developed locally. The suitable jig fixtures for man forks and bearing caps were designed and developed in-house and appropriate tools were procured from Indian companies in consultation with the MAN Force technical team, adds Mr. Bhagwat.

Tool Holder has been supplying all these critical parts to MAN Force trucks since last two years. It is also geared to cater to the requirements of MAN Force and also to the spares required by MAN Germany.

Rajshree Engineering

Rajshree Engineering was amongst the first few vendors to the MAN Force JV. The company was chosen to supply chassis assembly and several sheet metal components and brackets. In fact, the first few trucks which rolled out in April 2006 were already on the chassis frame supplied by Rajshree.
Mr. Siddarth Bhargava, Director, Rajshree Engineering, says: “The last 3 years have been a very wonderful journey full of learning at every step supported by officials from both Force Motors and MAN, Germany. We were also given an opportunity to visit various MAN facilities in Germany including Steyr, Nurenburg, Munich, Gustavburg and Penzburg to study the processes being followed their and to implement them at our facilities in India. During this journey we have built quality in every step of manufacturing process and are today very proud that component supplied by us are also being sent to various markets outside India as part of MFTPL-TIB exports”.
MFTPL has developed an excellent range of vehicles with strong aggregates which will be very well respected by the customer both in India and abroad for their quality and performance, adds Mr. Bhargava.

Ashok Leyland-John Deere JV pact finalised

Ashok Leyland and John Deere Construction & Forestry Company have announced completion of all legal formalities for the formation of the joint venture company, Ashok Leyland John Deere Construction Equipment Private Ltd. The definitive agreement to form the 50:50 joint venture was first announced in September 2008.

The joint venture will initially manufacture backhoes and wheel loaders and will market them in India and abroad. The range will subsequently be expanded to include a full line of construction equipment. Pilot production will commence, as scheduled, from October 2010 and serial production by January 2011 at a manufacturing facility to be located near Chennai.

As the second largest commercial vehicle manufacturer in the country, Ashok Leyland brings its expertise and broad, pan-India distribution network, while John Deere, the world’s largest manufacturer of equipment for agriculture and forestry, will provide its technical know-how and vast experience in the construction equipment business.

The $2.5 billion Indian construction equipment industry has been on a growth trajectory and envisages 20 per cent year-on-year growth over the next five years.

The new range of construction equipment will complement Ashok Leyland’s range of commercial vehicles like tippers, cement bulkers and tip-trailers, underscoring the close synergies that exist between the two businesses.

Ashok Leyland launches new multi-axle vehicle

Ashok Leyland has launched the 3116 multi-axle vehicle (MAV) with 8x2 configuration, developed for high fuel efficiency.

Speaking on the occasion, Mr. Vinod K. Dasari, Director & Chief Operating Officer, Ashok Leyland, explained that the 3116 is being launched to complement the successful 3121 8x2 MAV from the company, which has earned market preference for arduous applications on flat terrains. Market feedback also showed the need for a similar vehicle with even lower operating costs, especially in one way load applications.

“Customers are seeking to improve operational profits by plying higher capacity vehicles that maximize the load. Therefore, within the MAV segment, there is a perceptible shift in favour of the 31T GVW vehicles, constituting 14% of the MAV demand in the first quarter of the current fiscal. We believe that we will grow only if we improve our customers’ profitability. One way to do this is to customize products to their specific needs. And that is why we moved quickly to offer a complementary product in the 31T range”, he said.

The 3116 derives the fuel efficiency advantage from an H series 6ETI-2K engine with optimised power, and a matching driveline. Customers stand to benefit from the inline fuel injection pump, which provides for low maintenance costs as well as excellent mileage. This vehicle is unique, as such an engine with inline pump is not available anywhere in the world. The suspension has been re-engineered for longer life and better vehicle stability, in response to market needs.

Giving an insight into the segmental shifts, Mr. Dasari explained that the MAV segment, pioneered by Ashok Leyland, has grown to become the largest segment accounting for over 60 per cent of the medium and heavy duty goods volume. Ashok Leyland has nearly 100 variants in its MAV range.

Andhra Pradesh, being one of the largest markets for MAVs, was the natural choice for the national launch of the new vehicle. In the State, 8x2 vehicles already constitute 17 per cent of the MAV volume. The 3116 is tailor-made for cement and general goods movement that dominate the State’s transportation sector.

Speaking on the occasion, Mr. Rajiv Sanghvi, Executive Director, Automotive Manufacturer’s Pvt Ltd. (AMPL), the long-standing dealer partner in Andhra Pradesh, Maharashtra and Gujarat, said that Ashok Leyland has been the leader in the medium and heavy duty commercial vehicle market in the State. The dealership has been investing in quality service network for enhanced customer satisfaction, with a network spanning 45 locations in the State. Mobile service vans, 24-hour helpline and exclusive accident care cells are some of the customer support initiatives.

AVIA Ashok Leyland products at green event on Capitol Hill

AVIA vehicles were seen at the Capitol in Washington D.C. on July 28, 2009. Six full electric midi trucks called ‘Smith Newton’ were handed over by members of the US Congress, led by Missouri Senator Kit Bond to representatives of top US companies, including Coca Cola and AT&T in front of the Capitol.

Built on Czech-made AVIA chassis and cabs by Tanfield UK and Smith USA, these zero emission electric vehicles are a sign of things to come in green transportation in the wake of increased environmental awareness and action.

For AVIA Ashok Leyland Motors (AALM), this signals an enhanced presence in the green transportation sector which offers high volume potential. For more than five years, AALM has been associated with the Tanfield Group UK for supply of electric vehicles in the UK which, along with Ireland, France and the Netherlands, is an important international market for the company.

Mobitec bags big Ashok Leyland order

Mobitec, a global leader in the design and manufacture of system technology for mobile passenger information, has bagged a major order worth over $6 million from Ashok Leyland. The company will provide electronic display and passenger information system for 2,500 buses. These buses, to be supplied to DTC in Delhi and four more major metros, will be rolled out in the next few months. Once the order is fully executed, Mobitec’s range of products will be found in more than 3,000 buses across India.

In 2007, Mobitec established a joint venture in India with Castmaster. The first major order received by Castmaster Mobitec was for the supply of over 500 electronic display systems to DTC buses. With this new order, the joint venture is moving into larger facilities to help ensure adequate work space for expected growth. “Receiving such a large and prestigious order fills us with pride. We see this as a customer endorsement of our position as a global leader”, says Oliver Wels, Managing Director of Mobitec Group and Vice President of stock-listed corporate group Digital Recorders Inc., of which Mobitec forms part.

Mobitec’s display systems each contain MobiLED front, side and rear displays. Furthermore, MobiSTOP, the internal display for showing the next stop and the digital announcement system MobiVOICE, including the control unit MobiMASTER ICU 600 with a GPS module will be fitted. Visitors to the Capital city and users of the public city buses got used to the electronic information displays from Mobitec in more than 500 existing buses which have made it easy for bus riders to recognize the right vehicle through superior readability of destination texts displayed and additional information provided.
In addition, Mobitec, through its joint venture with Castmaster, has been awarded the contract for supply of electronic information systems for the entire new bus fleet in Delhi and other metropolises. This means another 2,500 vehicles in addition to the existing fleet.

Mobitec has set up a comprehensive and very closely-knit service network in Delhi. Nine depots are humming with activity 24/7, ensuring spare parts availability and seamlessly integrated one-stop shop service. “This is absolutely unique, and it is an expression of our proverbial commitment towards our customers. We are very proud and honoured having received this prestigious and single largest order in our history. We see this as a great sign of trust and loyalty to a great partnership,” confirms Oliver Wels.

Delhi’s major endeavours concerning new vehicles constitute an attempt at modernising its public means of transport, thus seeking to meet the rising demand in public passenger transport. Above all, this has to be seen in the context of the Commonwealth Games scheduled in Delhi in 2010.

Mobitec has been further enhancing its footprint in India since the end of 2007 when it established its joint venture with Castmaster. Apart from this, it had already been providing passenger information systems for vehicles in cities like Mumbai, Chennai, Chandigarh and Indore.
Founded in 1987, Mobitec is today the global leader in the design and manufacture of system technology for mobile passenger information on buses and rail transport. Headquartered in Herrljunga, Sweden, it forms part of the Digital Recorders Inc. Group. At present, Mobitec systems are in operation in more than 50 countries. The company is serving the international market from three production facilities, and its unique sales and service network guarantees smooth commissioning of information systems across the globe.

A record high in ACGL bus sales

Despite recession, Automobile Corporation of Goa Ltd. (ACGL) sold over 4,500 buses in 2008-09, the highest-ever in the history of the company. It has, since inception, built over 26,000 buses at its Goa plant.

With the big boost to the bus industry under the JNNURM program, ACGL has heavily invested on capacity expansion. Its current annual capacity is to build 7,500 buses, which can be raised to 10,000 buses with minimal changes. The company which originally builds buses for Tata Motors to meet its export requirements has also started making buses for the domestic market. In fact, the prestigious Tata Hispano luxury bus is being built at the ACGL plant only.
ACGL, the joint venture between Tata Motors and EDC, a Goa Government undertaking, was set up with the primary objective of aiding economic development of Sattari, a backward area in Goa. While EDC, on its part, provided finance and infrastructure, Tata Motors, the erstwhile Telco, agreed to provide technical and managerial assistance to the joint venture. In 1988, the company fully realised its export potential and entered into a technical collaboration with Fuji Heavy Industries, a Japanese bus coach manufacturer, to establish a facility in the vicinity of the Sheet Metal Division (SMD) factory at Sattari.

Over the years, ACGL has built very strong capabilities in bus body building. The Hispano luxury bus built at ACGL is proof enough of this. ACGL is also a leading supplier of buses for airport operations. Most of the new semi low-floor buses which are being run by airlines like Jet, Kingfisher, Indigo, MDLR and others are being built by the company.

ACGL has so far this year supplied customized vehicles like dog squad vans, police vans, LCV buses for MSRTC, city buses to PMPML, etc. It has a proposal to transport fully-built buses from Goa to Mumbai through RO-RO services of Konkan Railway, and trials are underway. This is indeed a very cost-effective and environment-friendly breakthrough for transportation of commercial vehicles.
The Goa plant was established to manufacture luxury buses with a capacity to manufacture 25 buses every month. Already over 50 of these buses have been built and delivered to customers in Karnataka, Andhra Pradesh, Maharashtra, Punjab.

Currently the chassis is being manufactured by Tata Motors in a modular concept and the bus body built at the ACGL facility. ACGL has two units in Goa. The first plant is a press shop and the second unit is for bus body building. As part of the expansion plans, the main plant of Pressings Division in Goa, which is Plant 1, has been partially converted into a bus body building unit with the installation of a modern paint shop. This plant’s current annual capacity is to produce around 2,500 buses. The full capacity of 5,000 buses will be attained once all the presses are shifted to a new location. This is the unit where the Tata Hispano luxury buses are being built.
Tata Motors has plans to provide more fully-built solutions in the bus segment. Currently buses are being manufactured at the Tata Marcopolo facility in Lucknow and Dharwad. The company also plans to focus more on ACGL due to its strong engineering and design capabilities. ACGL will clearly play an important role in the bus market in the coming years.

Bitzer bullish on growth prospects in Indian market

Bitzer, the world’s leading manufacturer of compressors for transport air-conditioners, is bullish on its growth prospects in the Indian market. The company has already bagged major orders from Indian OEMs. In a recent interview to MOTORINDIA, Mr. Robert Dee Bruyn, Managing Director, Bitzer India Private Ltd., said, “The impetus given by the Government will keep demand for air-conditioned buses very strong, and this will in turn keep demand for Bitzer compressors very high”.

Excerpts:

Question: How is the overall business for Bitzer worldwide and how has been the business in India?

Answer: Bitzer International is the largest manufacturer of transport compressors in the world. Bitzer sold 58,000 bus compressors in China alone in 2008. In India, the transport compressor business grew 351 per cent in calendar year 2008 over 2007. Even with the ongoing global slowdown in business, Bitzer India will grow the transport compressor business by at least 50 per cent in 2009. In calendar years 2010 and 2011, the growth rates will be again in three digits.

Q: What is the product range you offer in the Indian market and which are the major segments (verticals) you are targeting?

A: In India, Bitzer offers compressors for bus air-conditioning, truck refrigeration and railway air-conditioning. The major growth in the past year has been in the bus air-conditioning segment due to the exponential rise in demand for air-conditioned buses. We will continue to accord top priority to the bus-air-conditioning market in India.

Q: What is your impression of the market for bus compressors in India? How do you see the future potential in Indian market?

A: The bus compressor market in India will grow at an annualized rate of about 35 per cent in the next few years due to the under-penetration of air-conditioned buses in India and the growing demand for this mode of travel. The impetus given by the Government will keep demand for our air-conditioned buses very strong, and this will in turn keep demand for Bitzer compressors very high.

Q: Do you have a manufacturing facility in India?

A: At present, we do not have any manufacturing facility in India. All our OEMs are supplied compressors from our plant in Germany.

Q: How many compressors units have been sold so far in the bus segment and which are the major contracts won by Bitzer in the Indian market?

A: Bitzer India has sold more than 2,500 bus compressors in India in the past three years. Bitzer has been a major supplier of compressors for the Delhi Transport Corporation (DTC) expansion project. In addition, the demand from hospitality industry for air-conditioned buses gave lot of impetus to growth. Going forward, the increase in grants for the JNNURM scheme announced by the Indian Government in the Budget will ensure that demand for bus air-conditioning compressors will continue to remain strong going forward. From 2010, Bitzer India will also increase the supply of compressors for the truck refrigeration segment. Railways is another segment being worked upon by us. In addition, Bitzer has introduced some patented products like a 24 vDC battery operated compressor for air-conditioning of truck drivers cabin that will see increase demand in the future.

Q: Who are the major Bus AC manufacturers you are working with in the Indian market. Are you 100 per cent supplier to any of the manufacturers?

A: Today, Bitzer India caters to the compressor requirement of all major OEMs in India like Spheros Motherson, Sidwal Refrigeration, Thermoking India, Carrier Transicold, Trans ACNR to name a few. We are 100 per cent supplier to most of these manufacturers for the range of compressors manufactured by us.

Q: What are the specific features of a Bitzer compressor, which is superior to other products available in the market?

A: Bitzer has launched the F400 & F600 series of compressors which are the most efficient compressors in their class. These compressors have housing mounted clutches which eliminate the stress caused on the shaft seals, as is the case with other compressor brands available in the market. In addition, they are upto 20 per cent lesser in weight and dimensions.
Q: What are the short-term and long-term targets both in terms of revenues and numbers?

A: The short-term goal in the next months is to open a new engineering and sales office in New Delhi, this office will cater to the expanding transport and well as commercial refrigeration OEM market. The long-term goal for Bitzer is to grow the market share of its products in India. Typically, Bitzer achieves up to 70 per cent market share in its class in countries around the globe. We envisage that this share will even surpassed in India, due to the comprehensive sales and after market support systems that we have developed here. Bitzer India has a staff strength of 14 people.

Q: What is the sales and service infrastructure created in India for Bitzer products?
A: Today, Bitzer has a comprehensive service network placed around the country. A very competent and dedicated service team is available at our office in Mumbai. We have three authorized service centres at Bangalore, New Delhi and Mumbai. In addition, authorized service providers are being appointed in ten cities across India. These service providers will be available to provide immediate service support to our esteemed customers.

Bearing challenges of modern truck design

Heavy truck designers and manufacturers in Canada and the US are all talking about the latest trend that promises to both improve and challenge the trucking industry. It includes finding new ways to reduce engine emissions while maximizing fuel economy.

In Canada, the industry is working together to popularize “enviroTrucks” that reduce fuel consumption and greenhouse gas emissions by utilizing the latest technologies. In the US, truck builders are focused on meeting new Environmental Protection Agency (EPA) regulations that address diesel engine emissions and idling times.

One way OEMs in the industry are building better trucks is by challenging suppliers to design components and sub-systems that reduce weight and improve fuel economy. When those suppliers can also provide products that lower cost, reduce inventory and simplify installation, partnering with them isn’t just good for the environment.
Threaded cup bearing

At Timken Company, a global friction management and power transmission solutions provider headquartered in Canton, Ohio, engineers are constantly looking for ways to improve overall system performance through smart bearing design. One of their recent innovations for trucking and off-highway pinion and differential shafts is the threaded cup bearing.

The threaded cup was originally designed to eliminate early service warranty problems occurring on heavy truck differential shafts when the originally-specified transition cup fits would come loose and turn, causing the housing to wear. The threaded cup design eliminates the turning cup, and its design also results in more benefits. It can improve fuel economy, reduce parts and inventory costs, and simplify differential shaft assembly.

“On differential shafts in the traditional bearing cup design, two standard-tapered single bearings are split-fit in the housing using threaded cup followers for bearing and gear mesh adjustment. The design also included separable locking devices with fasteners to prevent the followers from unthreading,” says Glenn Fahrni, principal application designer at Timken. “Because the differential shaft requires an adjustable cup, the cup fits must be originally-specified as partially loose in the housing. This causes the cups to eventually work themselves loose rotationally until they begin wearing on the cup adjuster and housing.”

To solve these problems, Timken integrated the threaded cup follower, tapered-single cup and rotational locking device into one component – the threaded cup assembly. The threads were moved from the old cup adjuster onto a portion of the cup outside diameter (OD).

“To provide an anti-rotational feature, we weld a low-carbon sheet metal ring to the carburized cup’s backface. Timken has been issued a patent for the threaded differential bearing cup”, Fahrni adds.

By combining the individual components of the traditional cup design into one, the threaded differential cup offers less complexity because there are fewer parts to inventory and handle during axle assembly. The result is easier and quicker assembly and less time spent adjusting the bearings and gear mesh.

Threaded cup designs also help OEMs reduce fuel consumption and maximize engine performance by creating less drag coming from the axles.
The threaded cup features Timken high-performance bearings, sometimes referred to as P900. These bearings feature ultra-clean steel, which reduces the risk of fatigue spalling and bearing failure. The bearings also have smoother surface finishes that improve lubricant film thickness, resulting in up to four times the predicted bearing life compared to standard finishes. The smoother surfaces also reduce friction, contributing to improved fuel economy.

Special internal bearing profiles also spread the load more evenly across the bearing contact surfaces, keeping contact stress to acceptable levels.

Mr. Fahrni further observes: “By combining clean steel, smoother surface finishes and special raceway profiles, we’ve been able to integrate several traditional components into the threaded cup bearing, making it capable of handling heavier loads without making the bearing bigger or heavier. It’s what we call power density – increasing the bearing capacity-to-weight ratio, so that a smaller bearing can carry a greater load.”

Since the integrated threaded cup weighs less than the traditional design, and also diminishes the overall housing width needed to support it, axle weight is saved. The overall weight savings help contribute to fuel economy and reduced engine emissions.

Reducing assembly time

Currently, Timken engineers are investigating the usage of a threaded cup bearing on the pinion shaft.

He says: “On the pinion shaft, to correctly adjust the traditional pinion bearings the axle OEM has to keep anywhere from 40 to 55 different sizes of a variable length cone spacer at their assembly station. How the pinion head and tail bearing tolerances stack up determines which spacer size is used.”

According to Mr. Fahrni, rolling torque is used as the bearing setting measurement method, and the tight-fitted cones are clamped through the spacer with a nut tightened to a very high clamp torque. If the wrong spacer size is initially used, you have to teardown the pinion shaft and rebuild with another spacer size.
He concludes making the point that teardowns involve loosening the nut and pulling off the outer tight-fitted cone – a time-consuming process. Sometimes two rebuilds are required. “A threaded cup on this shaft would result in only one fixed-length cone spacer size being needed and no production teardowns or rebuilds.”

Six trends impacting commercial vehicle aftermarket

By Joe Mejaly, Vice President and General Manager, Commercial Vehicle Aftermarket, ArvinMeritor
The aftermarket has never been more important to North American truck operators as they strive to maximize life and uptime from their current fleet of trucks and trailers. With an average vehicle age approaching nine years, the fleet manager, with his distribution channel for replacement parts, focuses on quality parts availability and overall life cycle costs, including appropriate parts support, counsel and expertise.

One result of this increased focus on parts is that there are more parts sources today, particularly low-cost suppliers. But with this low cost arises the issue of quality, support, resources, availability and back-up required from a comprehensive parts portfolio. Before and after-the-sale support has never been more sought for and even demanded by fleet operators.

The management team of ArvinMeritor’s Commercial Vehicle Aftermarket business group recognizes distinct trends that are impacting the aftermarket, including fleet operators as well as truck-trailer dealers and distributors.

The following are the six distinct trends impacting the aftermarket:

Total life cycle approach: When a truck operator asks about replacement parts, the simplest advice is to purchase the exact same part spec that came with the vehicle from the factory. Generally, that’s the most reliable rule of thumb.

As they age, trucks and trailers take on new owners and with them new vocations. A vehicle designed for truckload service in the South-East may now be hauling grain over mountain passes in the Pacific Northwest. Commercial vehicles need replacement parts that are suited to how and where they work right now. A component that just “fits” a given make and model may not necessarily meet the customer’s need for performance, longevity, and especially value.
Component manufacturers are providing increasingly more assistance with the vocational spec’ing of components. Field representatives have spec’ing software that can help determine which components will deliver the best performance for the way a vehicle is being used at the time of repair.

Managing customers who run lean: Dealers and WDs are looking for strategies to sell to cost-conscious customers. One element involves inventory – stocking parts that are low priced but deliver good performance and value. This can include “OEM-approved” parts that are made by a third-party vendor but meet rigorous performance and manufacturing standards set by a reputable OE manufacturer in North America. That OEM may not produce part, but it stands behind it.

Naturally with any replacement parts to maximize vehicles’ uptime is the advantage of offering OEM dealers and WDs quick and ready access to parts inventory at domestic warehousing.

In addition to more prevalent online ordering, many suppliers offer vendor managed inventory (VMI). VMI can automatically generate recommended orders based on mutually agreed upon objectives and information sent by the customer. After the VMI system develops recommended orders, the supplier reviews them and launches the ordering feature. A purchase order is generated and transmitted from the supplier to the customer through the customer’s back-end system.

Another element is education and training. In an age of “buyer beware,” aftermarket parts dealers and WDs can play an increasing role in helping customers understand the increasing number of parts choices that are available and what they trade off when cost-cutting or price is the top priority.

Rise of remanufacturing: Remanufactured truck and trailer components – the product of a disassembly, cleaning, rigorous inspection and qualifying, including necessary replacement, reassembly and testing process – are ideal for customers who want performance, service life and warranty support without the cost associated with a new component.

Parts buying decisions shift as the vehicle gets older. The second, third and fourth owners may have different priorities than the original. For instance, as illustrated on the chart, truck operators move to price point products, and eventually heavy use of remanufactured components, to assure high quality.

Remanufacturing differs from rebuilding or repairing, in that the part is disassembled, cleaned, inspected, and any worn components are replaced. The part is then re-assembled to the same tolerances as the original. The result is an exact fit, with no modifications necessary for vehicle installation. The component is designed and tested to match the performance and fit of the original at a lower cost than a completely new unit.

Remanufacturing also provides the environmental benefit of extending the productive life of a part that might otherwise be scrapped. In 2008, over 60 million pounds of steel were recycled and remanufactured by ArvinMeritor.

Information services: The successes of online retailers like Amazon.com have raised expectations for anyone who uses the internet to compare products and place orders. Many suppliers, including ArvinMeritor, have online catalogs and ordering systems. In our case, XpresswayPlus.com enables customers to check product availability, place orders, check the status of a delivery, print invoices, view in-depth technical information, and see enlarged views of products and assemblies. It provides dealers and independent shops alike with equal access to general service and repair information for ArvinMeritor products.

Information services has also contributed to the company’s ability to step up customer service with a five-star Call Center that provides first-call resolution, follow-up resolution within 24 hours, order board management, and e-commerce.
Technology is enabling suppliers to offer more convenient and cost-effective training. ArvinMeritor’s Blended Learning Program is an example of using technology to integrate self-guided online learning, virtual classroom webinars, and on-site instruction.

The appeal of all-makes: Ten years ago, there were incentives for fleets to consolidate their vehicle purchases with one vehicle manufacturer. Today’s truck buyers serve more markets, offer more services and support more applications than ever before.

It’s not practical to maintain an inventory of genuine replacement parts that spans the multiple brands of today’s mixed fleet. By implementing the concept of all-makes parts, truck operators can enjoy the benefits of “one-stop shopping” while dealers and distributors can streamline inventory and capture more business regardless of a fleet’s brand composition. Consider the intrinsic and pragmatic value of one phone number, one center of expertise, one website, and one trusted in-the-field representative. The all-makes difference is in the bottomline.

The risk of imitation parts: There will always be a group of customers who buy on price alone. However, as a dealer or distributor, it’s important to be wary of will-fit parts that don’t deliver the consistent and reliable performance that customers expect. Dealers and distributors who sell or install poor quality parts can damage their reputation or worse face liability issues should a product failure have catastrophic consequences.

Few manufacturers worldwide are equipped to manufacture, or approve for sale, OEM-quality commercial vehicle replacement components for aftermarket use. Many manufacturers don’t have the engineering expertise, the understanding of the part’s original design, or the quality manufacturing processes to match the exacting performance specifications of an OE component. They cannot match the safety, reliability or durability of the original.

To keep costs attractively low, unapproved parts may use cheaper materials and lower grades of metals that can lead to component failures. If untrained labor is used, error-prone manufacturing can result. Quality standards simply do not exist at some offshore manufacturing facilities. And there is no after-sales support. “Buyer beware” applies to parts dealers and distributors as well.

To help address the issue of counterfeiting, diversion, non-compliant products and intellectual property rights, ArvinMeritor joined with other companies the MEMA Brand Protection Council. The group is open to any member of the Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA) or the Original Equipment Suppliers Association (OESA). The council meets four times a year and helps direct MEMA and the industry’s collective actions on various intellectual property issues. The Council also shares best practices and dialogue on this growing industry challenge.

Being properly positioned for this surge in aftermarket sales means partnering with dependable, reliable suppliers who can deliver a range of quality products and high-caliber after-sales support.

Massive Vijay Leasing order for Volvo trucks

Volvo Trucks in India has secured an order for 125 trucks from Vijay Leasing Company of Hyderabad, the largest-ever for the company since its inception. The trucks will be delivered in the summer of 2009 for use in coal and steel mines in southern India. Vijay Leasing already owns 108 Volvo trucks.

The massive Vijay order marks a milestone, according to Pär Östberg, member of Volvo’s Group Executive Management and President of Trucks Asia. There are a total of 5,500 Volvo trucks in India, which is the world’s fourth largest truck market.
“In India, Volvo Trucks belongs to the premium segment and has secured a place as the leading manufacturer in terms of safety and environmental responsibility”, says Pär Östberg. “We have a solid customer base, very strong customer relationships and the best aftermarket solutions”.

He is cautiously optimistic about the Indian truck market and views the Vijay order as a sign that the vehicle market in India may start picking up soon. “We are witnessing positive signs of recovery regarding light trucks and buses. In terms of heavy trucks, the market is still declining but at a slower rate.”

The sale is being conducted through VE Commercial Vehicles, a joint venture between Volvo and Eicher Motors launched in 2008.

TRF acquires Dutch Lanka

TRF Ltd., a Tata enterprise, has signed an agreement to acquire Dutch Lanka Trailer Manufacturers Ltd. (DLT). In the first phase, TRF will acquire 51 per cent of equity shares at a consideration of $8.67 million. It would also sign a call & put option agreement for acquisition of the balance 49 per cent of equity shares at a consideration of $8.33 million.

DLT has manufacturing facility in Sri Lanka and sells trailers in as many as 30 countries. Dutch Lanka Engineering (Private) Ltd., 100 per cent subsidiary of DLT in Sri Lanka, is engaged in repairs, maintenance and service business for trailers. DLT also has a subsidiary in Oman which manufactures and sells trailers in the West Asian markets.

DLT, at present, exports trailers to 30 countries. Through its joint venture with Tata International Ltd. in India, it also manufactures and sells trailers.

TRF plans to grow rapidly, five times in five years, and become a Rs. 2,500-crore company by 2013, by enhancing focus on material handling business and entering new businesses. Recently, TRF entered in to a shareholders agreement, along with Tata Capital Ltd and Jasper Industries Pvt. Ltd., to form a joint venture, Adithya Automotive Applications Pvt. Ltd., with the main objects of engaging in the business of automotive applications to provide end solutions through fabrications and machining for vehicles to be used as tippers, load bodies, trailers, refrigerated bodies, etc.
In June, 2009, TRF Ltd. turned a new page in its history by recommending issue of bonus shares in the ratio of 1:1. A pioneer in engineering and supply of material handling equipment and systems for five decades, the company also owns a subsidiary, York Transport Equipment (Asia) Pte Ltd., Singapore, which is engaged in production and distribution of trailer undergears, with market presence in 27 countries and manufacturing base in Singapore and Australia, and India from April 2009.

Volvo FM 400 delivered in Tamil Nadu

Volvo India Private Ltd. is one of the key players in the bus and truck segment in India. Though currently it sells more buses, it is contemplating special strategies to widen its market share in the truck segment too. In its endeavour to promote its high-performance trucks in the construction and mining industry, it recently launched the Volvo FM 400 8x4 tipper with rock body designed for special applications in quarries. The first upgraded tipper was delivered to a Tamil Nadu customer at a special function got up for the purpose in Chennai.

Addressing the gathering that included members of the Tamil Nadu Sand Lorry Owners Association and the Southern Lorry Owners Welfare Association, Mr. Anirban Dutta, National Sales Manager, VE Commercial Vehicles Ltd., (formerly Eicher Motors Ltd.), said the operations of Volvo in India, run entirely by Indians, have considerably expanded after its acquisition of Eicher. The company has always had its focus on three important criteria, namely, quality, safety and environment. Worldwide, Volvo is one of the most popular automotive firms with leading brands like Mack, Renault-Nissan trucks, etc. Its global sales in 2008 were $40 billion, of which 67 per cent comes from trucks.

Though Volvo trucks are 10 per cent more expensive than those from others, they have proved a preferred choice among buyers mainly because of the product quality and safety. As many as 1,000 engineers at the Bangalore plant, mostly on the software application side, are busy developing newer technologies.

The Volvo edge

Mr. Dutta said Volvo trucks, with a special focus on premium customers, also targets the mining industry. Its JV with Eicher, a prominent manufacturer of medium and heavy commercial vehicles in India, has narrowed the gap in Volvo product range. It has a 400-strong countrywide distribution network, and with the support of Eicher, the company is able to have better access to local customers.

According to Mr. Dutta, Volvo offers its expertise and global market presence to the JV with Eicher. With the initial investment of Rs. 300 crores, more than 5,500 units that rolled out of the plant are already in operation all over the country. Currently, the company has five regional warehouses, 80 bus and truck support points and over 100 service points.

Success through driver training

Volvo is one among the few companies in India that have taken driver training to higher levels. It has trained over 14,000 drivers over the last 10 years. “We not only build trucks but also work with the customers’ lifetime profitability. For instance, 20 per cent of Coal India’s overall production takes place through Volvo trucks – proving its ready acceptability in the mining sector”, Mr. Dutta added.

Mr. R. Senthil Kumar, Deputy Manager - Application Engineering, Marketing, Volvo India Private Ltd., made a complete presentation on Volvo’s range of trucks available in India.

Earlier, Mr. V. Kumar, Area Manager - Kar & TN, VE Commercial Vehicles Ltd., in his welcome address, said Volvo India, established in 1997 at Hoskote near Bangalore, has completed its successful decade-long service two years back.

Mr. Mohammed Khaleemula of Trans Infra & Logistics, Chennai, who received the key of the first Volvo FM 400 tipper, in his brief address, said he entered the tractor trailer business in 1997 and is now owning more than 11 Volvo tractor trailers. This expansion in business is attributed mainly to the performance of the Volvo truck. Though the initial cost is high, the vehicle productivity is much higher. Also it is the service-with-smile concept and the driver training focus of Volvo that has made him what he is today.

“The Volvo team is the best part of my life today”, Mr. Kalim added.