U-Truck: To drive Ashok Leyland's future growth

-By K. Gopalakrishnan
I am no expert in testing trucks. But having driven many of the Indian and European trucks, I can say that Ashok Leyland has a winner in “U-Truck”. I had the opportunity to drive the new range of trucks at the AL test facility in Chennai and found them very impressive. Ashok Leyland has leap-frogged technology and has designed and developed a product which will set standards in the Indian commercial vehicle industry.
Mr. R. Seshasayee, Managing Director, Ashok Leyland, says: “U-Truck anticipates and will continue to answer the changing needs of the market. It is not a niche product but a vehicle for mass migration of customers to a superior experience”.

The U-Truck will be manufactured at the new state-of-the-art facility at Pantnagar which has a capacity to manufacture 50, 000 trucks per annum. Initial units will be rolled out of the Hosur II facility, adds Mr. Seshasayee.
Mr. Rajive Saharia, Executive Director - Sales & Marketing, Ashok Leyland, said: “The U Truck series will be unveiled at the Auto Expo and will be progressively launched, starting from April 2010. We have lined up 25 different models in the U Truck range, and all these models will be launched within 18 months starting from April 2010”.

The U Truck range will comprise the complete range of trucks from 16 to 49 tonne which includes haulage trucks, tippers and tractors. The new range will eventually replace the existing range of trucks offered by Ashok Leyland.

The U Truck project was a complete shift in the way we started looking at the market and customers, says Mr. B.Venkat Subramaniam, Special Director - Future Vehicles Program, Ashok Leyland Ltd. “Currently we have a range of trucks which are typically built on to a standard chassis and then developed for a specific solution. Even though we have a wide range of products, it is still not very comprehensive to address the needs of our customers. The U-Truck is a complete shift in the way we started addressing the customer needs. We want to offer our customers a product which is completely customised to the application for which the truck will be used. Also the U Truck range has been fuelled by our own ambitions to grow, to enter new markets and cater to customers whom we are not catering to right now. That’s why we have developed a new platform of trucks that is entirely modular to build and therefore much easier to customise and deliver retaining the DNA of Ashok Leyland trucks which is rugged, reliable and fuel efficient. The U-Truck range will be contemporary, competitive and future ready products and will transform the customer needs”.

Positioning of the U-Truck

The name U-Truck comes from the company’s tagline “Engineering your tomorrows”. It’s the ‘your’ in the middle which stands for ‘U’ and this in turn signifies the customer.

Mr. Saharia says: “The mission behind the development of the U Truck was to offer customers an opportunity to mass-migrate into a future truck, which is ready to deliver a far superior experience. It is leading the customer’s needs, and on that delivering a better experience. While doing this we are not trying to create a niche segment or a high-end product. This is a product which will be offered to the entire range of customers. It will address our entire range from 16 to 49 tonnes. The U truck range will be affordable and ensure higher return on investment for our customers”.

Ashok Leyland is planning to launch 25 new models under the U Truck range in the first 18 months starting from April next. The reason for choosing this date is purely to match the emission norms. The U Truck series will cover the entire range from tractor trailers, tippers and haulage vehicles.

“In the first quarter from April to June, we plan to launch 9 models and there after we will launch 4 to 5 products every quarter. Practically every month we will launch a new product from the U truck range. Initially we will target the tractor and tipper segment, and within each product category the company will offer variants. In tippers alone there will be close to 20 different models, Mr. Saharia adds.
Design and Development of U Truck

Mr. R. R. G. Menon, Executive Director - Product Development, Ashok Leyland, observes: “When designing and developing the U Truck, we have closely looked at the parameters which drive business for our customer which is better comfort for the driver, better fuel efficiency, more payload, high vehicle uptime, faster turn-around time, durability and a fully built solution which will help him put the vehicle on road from day 1. This is the base from which the engineering team started”.

Cabs

The new U Truck series will have all combinations starting from 4X2, 6X2, 6X4, 8X2, 8X4 in the haulage, tipper and tractor segments. In terms of features, the new truck range will have factory-built cabs as standard in all trucks. It is the G90 cab or the Newgen cab, as it is known. The cabs will be both high roof and day cabs with factory-fitted AC as optional. The cab will be a suspended and tiltable one having cleared all crash tests. The company is also working on a completely new cab, code named the Nextgen, which will be introduced from 2012-13 onwards.

New series engines

Ashok Leyland has developed a completely new series of engines to power the U Truck. The new Neptune series of engines will set benchmarks offering superior levels of performance, power and fuel efficiency. In the Neptune series, there are 11 different power ratings starting from 160 to 360 hp, which will be Euro 3, Euro 4-compliant and the Neptune series can be upgraded to Euro 5. The Neptune engines are both SCR and EGR ready. The company has worked with AVL of Austria in developing the new series of engines.

Apart from the Neptune series of engines, the existing successful H series engines will also be offered in the U Truck. Currently the engine range Ashok Leyland offers is in the range of 160 to 360 hp. For requirement beyond 360 hp, particularly in heavy duty Tractor Trailer applications, the company is open to sourcing engines from manufacturers like Cummins or CAT.

Transmissions

The transmissions will be manufactured by Ashok Leyland with technology from ZF. The U Truck range will offer 6, 8, 9 and 16 speed gear boxes based on the models and specifications. Ashok Leyland currently manufactures the 6, 8 and 9 speed gear boxes and 16 speed will be sourced from ZF directly. The company is also working on automated manual transmissions and fully automatic transmission for deep mining applications.

Axles

Rear axles will be from both Meritor and Dana sourced from Automotive Axles and Axles India. The company will offer seven different rear axle ratios based on the application and customer requirement. Front axles will be manufactured by Ashok Leyland in-house. The U truck will be fitted with bigger and wider brakes with disc brakes as an option. The new front axle have been designed accordingly. All this helps is getting faster turnaround time.

Suspension

The suspension has been designed to be longer than the current offering and this would result in better ride comfort. The company offers both standard and heavy duty suspension based on applications. Ashok Leyland is also planning to offer anti-roll bar and air suspension system based on customer requirement.

Front instrument cluster

The electronic architecture in the U Truck needs specific mention. The Automotive Infotronics Division has developed a completely new instrument panel through its joint venture with Continental. The new instrument panel can perform functions like remote diagnosis, prognosis, gear shift indicator, fuel, maps, cameras and many others.

The U Truck will offer 5 to 7 per cent better fuel efficiency than the present range of vehicles. It depends on the way you select the driveline for the application. The truck has been tested for over 300,000 kms on road.
Ashok Leyland is working on every aspect which will result in improved performance of the product. The company is also designing the applications like tippers, trailer, bulkers as the performance of the vehicle largely depends on the design of these applications. Even the hydraulics used on the tipper will be Ashok Leyland branded and will be integrated with the vehicle and validated by the company. “Tippers, trailers and other bodies will be loaded to the vehicle at the production point, and the vehicle will roll out as a fully built unit. We will take complete responsibility for the product”, adds Mr. Saharia.

The new products will have a modular nature that will help Ashok Leyland to develop variants to address the needs of different markets, different application, and road conditions.

Sales and service

Mr. Seshasayee says: “U-Truck is part of the organizational transformational process. We have covered some ground, in the ability of functions to be proximate without intermediation, in capturing customer voice, CRM and in dealer management. U-Truck will bring in further changes in the organization. Units have to move from stock-and-sell to make-to-order. It will call for greater agility to fulfill diverse orders. It will change the way we deliver products and services to the customer”.

Ashok Leyland is addressing this requirement by completely revamping the sales and service infrastructure and manpower. There is a completely transformation in the service infrastructure.

Mr. Saharia says: “One of the major challenges for the company would be in the area of sales and service of the new truck range. Its going to be very different from selling just a standard chassis. – We need to sit down with the customer, find his application, understand his requirement and build a truck which best suits his needs. We need to factor-in performance characteristics like power, gradeability, fuel efficiency before we suggest the right truck to our customer. We want to offer a completely different service experience to the customer. We have geared up in terms of delivering quality service and the promise of assured and quick response times. For this we have started an initiative called ‘Leyland Direct’, which is already being piloted on certain routes.

Leyland Direct is an initiative to create a single point of contact for all customer needs, addressing their sales, service and parts requirements. Currently it has started off as a distress response initiative. “The commitment is if, on the Golden Quadrilateral, a customer needs help at any place or time, he can call our helpline, and we will reach there in 4 hours and get the vehicle back on road in 48 hours. And if we fail to set it right in 48 hours, then we pay compensation accordingly”, said Mr. Saharia.

For the purpose, Ashok Leyland has created a touch point every 75 to 100 km within the Golden Quadrilateral. The idea is to be able to map all the routes where the customers operate and extend the service offering.

Even for tipper operators who are operating in remote locations like mines, the company is working on providing service at the customer site. It has recently started a containerised workshop, a mobile service offering, which can be stationed in location where there is a high density of customer vehicles.

Added to this, the trucks can be fitted with the ALERT module which can enable two way voice communication. Through this module, the driver can instantly connect to the Ashok Leyland service call centre. The call centre is equipped with manpower to handle upto six different languages, and they don’t just attend to the call but are also equipped to understand the problem and immediately inform the nearby service facility which will reach the customer at the fastest possible time.

The company has looked at high reliability as an important factor in all aggregates. This will ensure maximum vehicle uptime. It has also looked at increasing the life of consumables and has designed it in such a way that the service and replacement interval for all aggregates and consumables will be at 40,000 km. This will ensure the vehicle can have a longer usage period without having to frequently visit the service station resulting in lesser maintenance time for the major aggregates, optimising lifecycle maintenance cost and ensuring longer warranty periods.

Global markets

According to Mr. Seshasayee, the U Truck reflects the company’s global ambitions and will help it spearhead its entry into the second hemisphere market, with competitive advantages in costs.

The company has been expanding its export market adding 2 to 3 new markets every year. Last year it added Honduras in Latin America and this year it will add a couple of more markets in the same region. We are also looking at the South East Asian region, says Mr. Seshasayee. The company is also looking at the possibility of exporting these trucks as SKDs and assembling it at UAE, where it has recently established a Bus plant.
The U-Truck marks the beginning of a new chapter in the history of Ashok Leyland. The 60-year-old company has transformed itself to match up to the requirements of the market and its customers. The U-Truck will lead the Ashok Leyland’s growth in the future.

Mahindra Navistar trucks to be unveiled at Auto Expo

Mahindra Navistar Automotives Ltd. (MNAL) will unveil its all-new truck range on January 4, just a day before Auto Expo opens in Delhi. As a precursor to this event, MNAL unveiled the MaxxForce series of engines fitted on the new range of its trucks. The introduction of this engine is the result of the partnership between M&M and Navistar under which joint ventures have been set up to manufacture engines and trucks in India.

Dr. Pawan Goenka, President, Automotive Sector, Mahindra & Mahindra Ltd., and Mr. Dee Kapur, President, Navistar Truck Group, USA, unveiled the MaxxForce 7.2 litre diesel engine.

Dr. Goenka said on the occasion: “The Mahindra Navistar truck and the MaxxForce engine have been designed and developed by the joint venture using the technology from Navistar combined with the engineering capabilities of M&M. The truck has been completely designed by the JV in India keeping in mind the requirements of the Indian market and customers”.

In 2005, Mahindra & Mahindra Ltd. and International Truck and Engine Corporation, the operating company of Navistar, entered into a JV to manufacture light, medium and heavy commercial vehicles for Indian as well as export markets. Subsequently, they signed another agreement for the JV, Mahindra Navistar Engines Private Ltd. (MNEPL), for manufacturing engines.
Said Mr. Kapur: “I am delighted to introduce the MaxxForce brand of engines, which power the world’s best trucks, to the Indian market. With its outstanding performance and low cost of ownership, I am sure that the MaxxForce 7.2 diesel engine will enjoy the same equity in India, as it does across the globe. We are also pleased to extend our association with Mahindra which is one of India’s leading auto brands.”

MNAL will be addressing every segment of the commercial vehicle market, from 3.5 tonne GVW to 49 tonne GVW with variants of passenger transport, cargo and specialized load applications. Mahindra Navistar aims to expand its product line over the next two years to emerge a full range commercial vehicle player. The JV has invested Rs. 1,200 crores at the new greenfield facility at Chakan in Pune for manufacturing trucks and engine.

MNEPL has been established with a capacity to manufacture 40,000 engines. The truck and engine facility is part of a much larger units established by M&M at Chakan over an area of 700 acres. Apart from the MNAL and MNEPL plant, the Chakan plant will also build the new small LCV and the new SUV which M&M plans to launch in 2010.

Mr. Rakesh Kalra, MNAL Managing Director, said: “We will unveil the trucks at Auto Expo and hope to launch it in the next few months. We are also planning to launch buses which will be fitted with rear engine in the next year and a half. Both the trucks and buses will be fitted with MaxxForce engines developed by the JV”.

Dr. Goenka said: “The MaxxForce 7.2 engine is known the world over as a high performance, reliable and fuel efficient engine and it is now all set to redefine the M & HCV segment in India. The engine has been designed for rugged operating environments and modified substantially for Indian truck requirements which will make it the driving force behind our forthcoming range of M & HCV Trucks. Mahindra & Mahindra has always been at the forefront of technological innovation, and by partnering with Navistar Inc., the world leader in diesel engine technology, we are well positioned to revolutionise the trucking business in India”.

MaxxForce 7.2 diesel engine, will power Mahindra Navistar’s new range of M & HCV trucks and buses which will be introduced in the Indian market in the coming months. The MaxxForce 7.2 engines will be manufactured at a state-of-the-art engine manufacturing plant at Chakan in Maharashtra. The plant will be spread across 23 acres of land and is equipped for serial production of medium speed diesel engines.

The new truck has been developed from scratch without adapting any of the global models of Navistar. Most of the Navistar models have a long hood in the front, which is typical of American trucks. Initially there was a plan to look at one of the models from the Navistar stable and adapt it to Indian market, said Dr. Goenka.

The JV then decided to design and develop a cab-over model, which is more specific to the Indian market, and hence the delay in the project which was conceived in 2005. The new range of trucks developed with a cab-over design will compliment the global product range of Navistar and this will open up opportunities for both the JV and the partners to look at various global markets for export of trucks and aggregates”, Dr. Goenka adds.

The trucks have been indigenously developed; hence there is a very high level of indigenisation. Except for the few components which are being imported for the engines, all other components have been completely indigenised, says Mr. Kalra.
“MNAL would be a major player and not a marginal player in the commercial vehicle segment. We will look at double digit market share in 2 to 3 years from launch of our product. We think we have a very strong value proposition in terms of pricing, technology, comfort, convenience, load carrying capacity and the way we will market and service the product”, says Dr. Goenka.

Exports

As with other JVs, exports will be an important area of focus for the MNAL JV. “We will certainly look at opportunities for export of truck and aggregates as well. One of the distinguishing factors of the JV is that, the truck which has been developed is owned by the JV and not by their parents. The JV has full freedom from both the partners to export the product to markets where it makes business sense. Export will help in increasing volumes for the project”, adds Dr. Goenka.

Mr. Rakesh Kalra says: “The JV has already been working on exporting components, and we already export truck and engine components back to the US worth $25-30 million per annum, and as we go along we will look at opportunities for engines as well as trucks. We will start export of trucks and engines in the next 12 to 18 months”.

Mahindra Navistar is already selling a range of LCVs, the Tourister and Loadking, which have been transferred to the JV from M&M. The new truck launch will be the first brand new product from the JV.

Currently the LCVs are being manufactured at M&M’s manufacturing facility at Zaheerabad. The company sells close to 10,000 units of the passenger and cargo versions.

The company has recently given a complete facelift to the existing LCV range. The new range called CRX offer more comfort, reliabity and load of Xtra features, says Mr. Kalra. CRX range comes with a new dash board, better roof linings, improved head room and seat positioning, which helps in easier entry and exit from the vehicle.

Sales & service

An important area which MNAL is working on is setting up of sales and service infrastructure. Currently the company is using M&M’s network for its commercial vehicle range. But with the launch of the new range of trucks, the company is setting up an independent sales and service network across India. “We will have our own network, and if we are able to use M&M’s existing network for preliminary service, then we have a huge network in place. We will have our own 3S dealers and service available in the next few months”, asserts Mr. Kalra.

In 2010, the competition in the CV segment will get intense. All commercial vehicle manufacturers have got their product range in place to meet customer expectations. How does MNAL plan to take on competition? “At the end of the day it is the product plus service, as a package which counts for the customer. We have developed a product which is fuel efficient, reliable, better ergonomics – at the right cost. We are working on ways to enhance his business and remain very competitive for our customer”, says Mr. Kalra.

Mr. Dee Kapur made an interesting observation on the Mahindra Group. Mahindra first launched its tractors 50 years ago, which was a model from the International stable and today M&M is the world’s largest manufacturer of tractors. Going by the same logic, Mahindra is launching its first heavy commercial vehicle jointly with Navistar. This could well be the start of another successful venture for the Mahindra Group.

MaxxForce engine to power Mahindra Navistar trucks

In November 2007, M&M and Navistar set up a JV to manufacture the MaxxForce series of engines in India. Mahindra Navistar Engines Private Ltd. (MNEPL), the new company’s advanced diesel engines will power the full line of trucks and buses produced by the preceding JV, Mahindra Navistar Automotives Ltd. Engine components will be sourced locally, going up to 95 per cent within two years, with the strong availability of quality parts and materials from Indian suppliers. Currently the JV has achieved close to 70 per cent indigenisation level.

With a state-of-the-art product line-up of advanced engines, MNEPL has progressive and cutting-edge technology to power this array of products. With stringent emission norms introduced across the globe, MNEPL products are geared for the future through a range of technologies.

The MaxxForce 7.2 diesel engine is a 7.2 litre in-line six cylinder diesel engine and will bring new levels of power, reliability and fuel efficiency to on-highway heavy commercial vehicles in India. It is, in fact, the most modern engine in its class in terms of product configuration as well as components technology for the HCV segment in India. With the 4-valve per cylinder technology, the engine has been designed for better performance, higher power, better fuel efficiency and stricter adherence to emission standards.
The engine features both a mechanical injection system with a Bosch Rotary pump, as well as a high-pressure 1800 bar common-rail fuel injection system. This ensures outstanding fuel economy, performance and durability. The MaxxForce 7.2 diesel engine to be produced in India also fully conforms to BS III and BS IV emissions standards. It is positioned to outperform competition in three distinct areas of performance, reliability and fuel economy.

The engine delivers maximum power of 210 hp @ 2200 rpm. This is primarily for the multi-axle truck which will be first launched by MNAL. The other versions of the engine in higher and lower capacities will be launched in due course to power the other range of trucks and buses which the JV plans to launch. The engine with the max torque of 880 N-m at a low speed of 1200-1400 rpm provides superior lugging power with minimum gear changes, even on steep gradients. The turbo with charge-air cooler is tuned to reduce noise, improve fuel economy and make MaxxForce 7.2-powered vehicles responsive and driver friendly. The combustion technology with a 4-valve per cylinder and optimized fuel injection system helps in achieving stringent BS III emissions without any after treatment.

The MaxxForce 7.2 has been extensively tested both in Brazil and India. It has also been tested on trucks in various geographic and climatic conditions across India. This has resulted in 15,000 plus hours of engine testing and 1.5 million km of development and validation on Indian roads. Directed piston cooling jets and gallery-cooled pistons help achieve maximum durability and reliability and assure outstanding power and engine life.

The engine offers unparalleled fuel economy, besides excellent drivability and performance, with impressive low end torque.
For ease of maintenance, the uniquely designed individual cylinder head ensures minimum maintenance and repair cost. The steel cylinder head gasket is modular and has a long life, with low replacement cost and ease of service. The wet liner design ensures minimum replacement cost for liners. The water pump is driven by the engine gear train instead of the belt, allowing trouble-free operation. It also eliminates chances of engine seizure due to belt failure.

Allison’s 1,000th automatic transmission for buses delivered in India

Widens scope to cover construction, mining segments
Allison Transmission, a leading manufacturer of automatic transmissions, has announced delivery of its 1000th bus transmission in India. The company has been supplying automatic transmissions to all major Indian bus manufacturers, including Tata Motors, Ashok Leyland and JCBL. Having established its presence in the bus segment, the company is now looking to expand its presence in the truck segment, particularly in mining and construction applications.

Mr. Ram Amarnath, Managing Director, Allison Transmision India Ltd., says: “The bus initiative that we started in early 2006 is beginning to gain traction, and as we continue to build on this business we want to make the next big push for the commercial trucks, wherein we are targeting the mining and construction segment”.

Allison’s association with India goes back more than 40 years when it began serving the country’s mining and oil field industries. Today, nearly 6,000 to 8,000 off-road equipments fitted with Allison Transmission are in operation in various mining sites and oil rigs across India, says Mr. Mike Headley, Vice President, International - Marketing, Sales and Service, Allison Transmission Inc.

With the truck industry in India moving towards more heavy duty applications, the company is looking for opportunities in on-highway applications as well. Allison is looking at offering solutions for concrete mixers trucks, crane carriers and heavy duty dump trucks.

In recent years, Allison Transmission’s growth in India has been propelled by fitting automatics into low-floor CNG and diesel buses in Delhi, Mumbai, Lucknow, Bangalore, Chennai, Hyderabad, Nagpur and other Indian cities. It all started in 2007 with the landmark DTC order for 650, which was the first step towards mass modernisation of buses in Indian cities. All these buses were fitted with automatic transmission supplied by Allison.
DTC has placed a further order for 2,500 low-floor city buses with Tata Motors and Ashok Leyland, and all these vehicles will be fitted with Allison automatic transmissions.

The JNNURM order for 15,000 buses has further helped increase the presence of Allison Transmission in cities across India. Almost 20 per cent of these buses are of low-floor, while a good percentage of them will have automatic transmission. Today, Allison’s automatic transmission fitted buses are plying in several Indian cities.

Based on its success in the Indian market, Allison has taken a major step towards setting up of a manufacturing facility in India. The company broke ground for its new Indian facility, in Chennai, during the start of 2009.

Allison has also set up a customisation centre in Chennai, wherein the company imports transmission from US and Hungary and customise it to suit the requirement of Indian OEMs. Allison has developed some local suppliers for support parts which go with an automatic transmission. The company is also in the process of making a final decision on setting up a parts distribution warehouse, says Mr. Ram Amarnath.
Allison’s presence in India solidifies the company’s desire to expand the automatic experience with an unrivalled combination of quality, reliability, durability, vocational value, and customer service to the Indian market. “We will continue to leverage on any opportunity, the Indian market may present itself”, assures Mr. Ram Amarnath.

MAN Force strategy starts paying off

Drive down the Chennai-Bangalore highway, and you are sure to see a growing population of the distinct yellow MAN trucks. Tippers, tractor trailers, haulage trucks.. you see them all steadily dominating the Indian landscape.

“Our strategy has finally worked”, says a confident Mr. Abhay Firodia, Chairman of MAN Force Trucks Private Ltd. “We had chalked out a two-fold strategy. The first was to introduce fuel-efficient, cost optimised haulage trucks. That strategy has been successful, and we have been able to sell good number of trucks and tippers in the last few months. The 2nd part of our strategy is to position more focussed products in the construction and mining segment. We have a complete range of tippers for mining and construction applications and those have performed exceedingly well in the marketplace”.

Mr. Firodia further says: “In fact we were geared up to sell more but our production was constrained because of the non-availability of fuel pumps from one of our supplier. Over the next 4 months, December 2009 to March 2010, we plan to focus on the haulage market and expect some numbers from this segment”.

MAN Force launched its trucks a couple of years back. In the initial years, the trucks were well received in the tipper and tractor trailer segment. But in the mass market haulage segment, the truck could not do well due to the price disadvantage. The product had to be re-engineered to suit the Indian market, which the company has successfully accomplished.
Mr. Firodia says: “Today, the cost effectiveness and reliability of our product has become well accepted as we now have a large number of satisfied customers across all product segments”.

The most important aspect, Mr. Firodia says, is that, “Our economy is beginning to look up, and with the enthusiasm one sees for investment now, whether it is mining, construction or haulage we should be seeing significant improvement in our numbers in the coming months”.

Exports has been one of the key area of focus for the JV. But due to the global recession, this has taken a hit. Still the company has done well in markets like Indonesia, Malaysia, South Africa.

“MAN has already fielded these vehicles in several markets, and the product has been well received with good repeat orders from several markets. Also MAN never had an 8X4 right hand drive tipper as part of its global portfolio of products. Now that we have an 8X4 tipper truck developed in India, this will help us in exports as well”, Mr. Firodia adds.
Currently in the tipper segment MAN Force offers a 16 tonne tipper, 25 tonne 6X4 tipper and 31 tonne 8X4 tippers. The company has already sold over 2,000 tippers in India. Jaihind, one of the group companies of Force Motors, has set up a tipper manufacturing unit in Pithampur close to the MAN Force facility, to supply tipper bodies for MAN trucks. This has already started operations and serial production will start in 2010, says Mr. Firodia. In 2010 MAN Force is expecting sales to reach a level of 500 trucks per month. For 2009-10 the target is to sell 3,000 trucks.

Finally, on the bus project, “we are moving ahead with the bus project and will launch inter-city coaches and city buses in early 2010”, he says.
“Overall we are far more confident, comfortable, and better organised. Over the next year, we will achieve impressive volumes. We have already start picking up numbers and expect to reach monthly sales volume of 1,000 units by end of 2010”, Mr. Firodia adds.

AMW to stay focussed on heavy truck segment

All-new 3123, 8x4 truck unveiled
Asia MotorWorks Ltd. (AMW), is back in full force and is gearing up to take advantage of the opportunity unfolding in the truck industry from 2010 and beyond. The company is planning to stay focussed on heavy trucks and tippers and consolidate its position in the 16 to 49 tonne segment.

“The recession in the commercial vehicle industry did teach us some hard lessons”, says Mr. A. Ramasubramanian, President, Asia MotorWorks. “It has enabled us to tighten up and has given us the inner strength that if we can survive this downturn then we are really here to stay”.

Mr. Ramasubramanian was in Hyderabad recently to launch the new AMW 3123 8X4 Truck which aims to address the long-felt need for a rugged and reliable vehicle in the highly demanding construction segment as well as sectors such as road and dam building and other allied infrastructure segments. AMW is the first manufacturer in India to offer a customized solution of 42-metre concrete pump through the 3123 truck. The vehicle’s robust and durable construction makes it ideally suited for off road applications.
AMW’s 3123 truck, fitted with a 232BHP diesel engine, comes with a 6 speed gear shift with closely packed gear ratios, leading to longer life of transmission and reduced maintenance costs. The reinforced sturdy chassis construction is an ideal solution for applications such as concrete pumps and transit mixers. A trend-setting “ready-to-use” air-conditioned cabin – a standard fitment in all AMW trucks – has proved to enhance driver productivity, and is available in the 3123.

Mr. Ramasubramanian said: “With the increased thrust on the construction and infrastructure activities, AMWs strategy is to offer specialized products that redefine standards in the industry. The 3123 has been specifically designed to cater to the increased demands of the industry and lends itself to numerous applications making it a winner in its niche. We are confident that the robustness and durability of the 3123 truck will find ready acceptance enabling us to garner significant market shares in this segment.”

AMW is a relatively new player in the commercial vehicle industry. The company launched its trucks in 2007 and, within a short span of time, has sold over 10,000 heavy trucks across India. In the first half of 2008, AMW was charging ahead in full force selling over 500 trucks and tippers every month. The recession did upset the company’s plans.

Mr. Ramsubramanian said: “The recession has taught us lessons on cost control and frugality in both engineering and operation. We are definitely well prepared now and want to make sure that we have a cyclicality-neutral portfolio of products”.
AMW offers trucks from 16 to 49 tonne range across haulage, tipper and tractor-trailer segments. The company is also looking at entering the 4X2 truck segment, which is a mass market product. Currently the company is averaging volumes of 500 to 600 units per month. For the current year, the target is to sell 6000 units, said Mr. Ramasubramanian.

On the aggregates front, AMW has been offering its trucks with Cummins engines, ZF gear boxes, Meritor axles and Valeo clutch. The company has recently started offering Eaton gear boxes in some of the models including a 9 speed Eaton gear box on one of the tipper models. Cabs are currently being imported as SKDs. The company has invested on a separate cab making facility, which will start manufacturing cabs once volumes increase.

AMW has also invested on manufacturing its own tippers and trailers. The tipper facility takes care of most of AMW’s requirement and the balance requirement is met by Hyva. The company is looking at manufacturing other application specific products like bulkers at its own facility at Bhuj.
Talking about the market opportunity from 2010 and beyond, Mr. Ramasubramanian observed that the market may not be euphoric but will start witnessing steady growth. The total market size for heavy trucks in India will hover around the 200,000 to 250,000 levels hence manufacturers will need to look at exports to emerging markets to utilise their capacities, Mr. Ramasubramanian added.

There are at least 100 emerging market which Indian manufacturers can target and AMW will definitely start looking at this opportunity in the future. Currently the company has started exports to Nepal.

In 2008, AMW had announced its plans to enter the bus and LCV segment. Due to the recession, these projects had to be put on hold.

Mr. Ramasubramanian also said: “Currently our focus is on heavy trucks and once we consolidate our position in this segment, we will then start looking at the other product segment. We will definitely pursue the bus segment but probably in the next couple of years. As far as LCV is concerned, we are completely ready with the product and it is more a matter of strategic decision making as to when to launch the product”.
AMW has been the most aggressive commercial vehicle manufacturer in recent years. Despite being a relatively new player, the company has managed to establish a very strong brand in the heavy truck segment. With competition hotting up in the heavy truck segment, from both existing and new players, AMW will find the scenario very challenging. But the company will no doubt play an important role in the Indian commercial vehicle industry in the years to come.

AMW showcases its strengths in construction & mining segment

Asia MotorWorks (AMW) was all over the show at Excon 2009 held recently at Bengaluru. Apart from its own participation, AMW trucks were on display in 12 other pavilions, including Putzmeister, Maxmech, Apollo, HIAB and Schwing Stetter. This clearly demonstrated the growing preference of AMW trucks among major contruction and mining equipment manufacturers, according to Mr. R.C. Mangal, Vice President, AsiaMotors Works India Ltd.

AMW had on display at Excon a range of commercial vehicles for the construction and mining sectors. This included fully-built tippers and transit mixers, and a chassis for concrete pump application that is a unique introduction. Also on display was a 49-tonne tip trailer that promises to redefine standards of productivity and performance in mining applications.

Mr. Mangal says: “AMW trucks offer a unique combination of technology and integration. They support numerous applications and can be further customized to suit more specialized needs. Robust and powerful, they are specifically designed for Indian conditions. With low maintenance and even lower downtime, they deliver great value and increased profitability”.

AMW had on display its 2518 tipper, 2518 transit mixer, 2518 concrete pump chassis, 2523 rock body tipper, 2523 box body tipper, 2523 tipper and 4923 tip trailer. The 2518 tipper, which is ideal for the irrigation, road construction and other infrastructure segment, comes with 180 hp engine and with a fully-built cabin. The 2523 tippers are ideally suited for the construction segment and for movement of excavated earth at large construction sites and of sand/rock from the quarry to the sites. The 2523 also plays a pivotal role in the mining segment for transporting overburden, coal, iron ore, marble, etc. With features that include AC cabin, superior gearbox and chassis-in chassis, the 2523 comes with two body options – 16 m3 standard body and a 14 m3 rock body.

The 4923 tip trailer has been designed for the widest range of applications; the 4923 offers dependability and high efficiencies making it the most productive vehicle in its category. “Higher payload, Higher earnings”, the 4923 is the first Indian vehicle to haul an astonishing 49 tonnes gross combination weight! Presenting an effective combination of a superior gearbox, world class features and a fully built AC cabin, it boasts of unmatched drive-line performance and 100 per cent reliability.

Tata Motors bullish on construction and mining segment

Tata Motors showcased its might in the construction and mining truck segment at Excon 2009 held in Bengaluru recently. The star of the show was the flashy yellow Tipper from the Prima (World Truck) range.

Mr. R. Ramakrishnan, Vice President - Sales and Marketing (CVBU), Tata Motors, said: “The construction and mining segment is a significant part of Tata Motors’ overall CV business and constitute to nearly 40% of the total heavy trucks sold. Traditionally, customers just bought a truck and used it for construction and mining purpose. We have now started offering customised solution based on the market requirement. In pace with the growth in infrastructure and the mining segment in the country we have developed a range of products under the brand CONSTRUCK. In the last few year this has grown to become a sizeable chunk of the total portfolio”.

Tata Motors offers a complete range of tippers and trucks for the construction and mining segment based on the application and customer requirement. Mr. Ramakrishnan (Ramki to his close friends) said: “We have made many changes to the product based on the usage pattern and customer requirement. Most of these trucks and equipments used in construction and mining segment are off-road vehicles. Therefore the torque and power required is of a different nature to climb out of slushy, muddy terrain. Also typically these vehicles are not used during monsoon season which means they are in use for only 8 to 10 months in a year and during this period they will be operating day and night hence reliability factor should be very high. Taking these factors into account today we offer higher power on these vehicles than the traditional on road trucks of equivalent tonnage. The aggregates have been made heavier so that the reliability factor is greatly enhanced”.
At the top-end is Prima, a 31-tonner tipper truck with an 8X4 configuration. Currently it comes with an 380 hp engine and very soon, the company is planning to launch another model in the Prima range with 420 hp engine. Due for introduction is 280 hp, a 31-tonner in the Prima range, which is aimed at the conventional road construction projects. This will be a more productive vehicle for the customers as they can do work faster with lesser number of vehicles.

On the 25-tonne model, Tata Motors traditionally offered a model with 160 hp engine. Now the company has launched two models with 180 hp and 230 hp engines and very soon it will launch a 280 hp tipper truck.

Deep mining is one segment in which Tata Motors has limited presence. This segment is currently dominated by Volvo, Mercedes and Scania. But with the Prima range, the company is confident that it will be able to offer similar performance tippers at lower prices. “The prices of the Prima range have not been announced, but it will be significantly lower than similar products which are available in the market. We will launch tippers from the Prima range in the next couple of months,” Ramki said.

But Tata Motors has gone beyond just tippers. It is now offering a complete range of solutions for the construction industry including concrete mixers, bulkers, boom pumps and cranes. “We are also working closely with our group company Telcon, in offering solutions like concrete mixers, cranes and other solutions for construction industry. The target audience is the same for Tata Motors and Telcon in the construction and mining segment. Our products complement each other and increasingly we are also working with Tata Capital to offer a complete package”.

“We are actually addressing the range, creating commercial packages and a synergy with Telcon and Tata Capital and creating technical packages by offering products which are more suited for construction and mining rather than just offering a truck chassis to the customer”, Ramki added.
This clearly demonstrates the company’s intent to offer fully-built solutions to its customers. From a revenue point of view it contributes much higher than the average truck sold. Currently in the CONSTRUCK brand the company is selling close to 50 per cent of the units as fully-built, and in the next few years this will go up to 90 per cent of the vehicles sold. Even within the CONSTRUCK range, 90 per cent of the multiaxle tipper trucks are already sold as fully built units. It’s only the 4X2 tippers which are being sold as runaway chassis, and this is also slowly moving towards being sold as fully built units.

Ramki further observed that offering a complete solution means the customer can put the vehicle on road from day 1. It improves productivity and will cut down unproductive time for the customer.

Last year, out of the total 120,000 heavy trucks sold by Tata Motors, close to 50,000 were for construction and mining operations. The total market size for trucks in the construction and mining segment would be anywhere between 75,000 to 80,000 units per annum, which gives Tata Motors a two-third marketshare in this segment.

In fact, the initial forecast was that the market size for tipper trucks alone will cross the 1,00,000-mark by 2011. The current recession has upset the schedule, and it is now expected that the industry will hit this volume only by 2012, and Tata Motors is targeting a significant share of this market.
“The construction and mining segment is waiting to explode. From 2010 onwards we expect the market to grow significantly, and if the new road projects announced by the government take shape we can expect this segment to do well for the next decade”, Ramki concluded.