Daimler India to roll out trucks by mid-2012

Daimler had announced plans a couple of years ago to enter the Indian commercial vehicle segment in a joint venture with the Hero Group. Subsequently, in April 2009, the Hero Group pulled out of the JV, and since then there has been speculation in the media on the future prospects of Daimler’s commercial vehicle venture in India. Practically all the big names, including Bajaj, TVS, AMW and others came up as Daimler’s potential partners. There were doubts raised even on the future of the project in India, considering the global economic condition.

Finally to put all speculation to rest and to express its commitment to the Indian market, Daimler India Commercial Vehicles (DICV) unveiled a test track of global standards within its upcoming facility on the outskirts of Chennai. This state-of-the-art test track which has come up in record time is the company’s first important step towards its strategy to develop, manufacture and launch trucks for the Indian volume market, beginning mid-2012.

DICV began construction of the test track in April 2009, and the prototype trucks developed for the Indian market are already being tested on these tracks. Construction of the upcoming plant is on schedule at a total investment of Rs. 4,400 crores over the next five years. The company will manufacture light, medium and heavy duty trucks at its 400-acre facility in Oragadam, near Chennai.

Mr. Marc Llistosella, CEO of DICV, said: “The Indian truck industry has been steadily progressing towards modern generation products in line with the requirements of the market. Keeping in mind the Indian customer’s need for high quality and reliable Trucks, we are confident that we will meet their expectations with our Best-in-Class products, offering low TCO (Total Cost of Ownership), high quality and superior value for money. Our new testing facility, a one-of-its-kind in South Asia is an important step towards ensuring this commitment”.
Mr. Aydogan Cakmaz, Vice President, Product Engineering, DICV, added: “This state-of the-art test track is a result of Indian engineering and German DNA. The construction of the test track with its various testing facilities is the result of extensive customer correlation studies and measurements, to simulate the reality of the Indian terrain. Our trucks will have to undergo a variety of tests to ensure high standards of overall product performance and delivery”.

This test track spread across 47 acres is the latest for Daimler Trucks. The other major tracks are located at Woerth in Germany and Kitsuregawa in Japan.

The 3-lane test track runs 1.55 km on the outer track, equipped with a noise pad and a jump section. The inner track runs 1.16 km and includes a bump track, pothole testing and articulation sections. The other facilities include a water trough, an inspection ramp and a control tower. More facilities such as gradeability and steering are being planned for implementation later. The test track has been designed to test the trucks at speeds of upto 90 km per hour in the super elevated curves.

The test track would operate as an independent profit centre, initially for the use of Daimler’s product testing, and later will be made available even to component vendors and non-core competitors for testing their products.

Out of the Rs. 4,400 crores of investment committed to the Indian market, a quarter of the investment, nearly Rs. 1,200 crores, has been committed to research and development of products for the Indian market. The test track is an effort to understand the requirements of the Indian market and its customers and develop a truck with Indian knowledge and expertise, says Mr. Llistosella. It’s not Daimler coming to India but India coming to Daimler.
Daimler is developing a complete range of trucks from 6 to 49 tonnes specifically suited to the Indian market. The company has developed the proto types and are already conducting extensive tests, both on the field and on test track. The company has adopted a very aggressive pricing strategy for the new products and hopes to launch the products at very competitive pricing vis-a-vis competition. “We want to be a mass market player and not just a niche player in the commercial vehicle segment”, said Mr. Llistosella.

He added that, to be competitive, the new range of trucks will have a high degree of localisation from day one. The trucks will be 85 per cent localised which includes the frames, axles, engines and all other major aggregates. Some critical components would be manufactured or assembled in house and most of the other components will be sourced from Indian suppliers or global suppliers who have established production facilities in India. The engines for the light and medium duty trucks will be contract manufactured and the ones for the heavy duty trucks will be manufactured at the DICV facility.

The Oragadam facility will also have a high quality painting and finishing line. Nearly 12 to 14 per cent of the manufacturing/assembly operations will be done in-house and the remaining will be sourced from established vendors.

Developing products for emerging markets is nothing new to Daimler. The company is a market leader in Indonesia, Middle East, South America, Brazil, Turkey and many other growing markets.
“We have put together a highly experienced team of people who have the experience of working in other global markets. We are used to heavily tough conditions and this is reflected in our team which is very global. We are in contact with customers, opinion makers and drivers. Some of our team members are also driving with Indian truckers in many parts of the country to understand the requirement. As the global leader for trucks, we have an obligation to raise the bar, to bring new standards to the industry, to set standards in safety regulations and in the process also remain profitable”, added Mr. Llistosella.

Currently DICV has a base of 400 employees, of both Indian and German talent. Production at the plant will be defined in a two-phase concept, to produce a maximum capacity of 70,000 units.

DICV will produce light, medium and heavy-duty commercial vehicles for the Indian volume market, starting 2012. The production plant, under construction, will be spread over 400 acres at Oragadam, near Chennai. Products will be customized to serve all major customer segments, from owner-drivers up to large fleet operators. The superior efficiency of products will make the trucks an optimal fit for customers keen on efficiency, lowest cost of ownership over the life cycle of the products and highest profit potential for their businesses.

Mahindra opens Chakan plant

Mahindra & Mahindra has reached another milestone by inaugurating its new world class manufacturing facility at Chakan, near Pune. The plant set up over a massive 700 acres of land at an estimated investment of $1 billion is one of the largest green field projects established in India.

The new plant was inaugurated on March 13 by the Maharashtra Chief Minister, Mr. Ashok Chavan, in the presence of Mr. Anand Mahindra, Vice Chairman and Managing Director, Mahindra Group, Dr. Pawan Goenka, President of Automotive Sector, M&M Ltd., and other eminent dignitaries.

Mr. Anand Mahindra observed on the occasion: “The Chakan story is characterised by the zeal, passion and commitment to create a factory of the future, a facility which will set new benchmarks in manufacturing excellence. This is clearly evident in its sheer scale and innovative manufacturing processes, which is in line with Mahindra’s vision to emerge as a leading full range player with the ability to compete against the best on the global automotive stage”.
Dr. Pawan Goenka, in his address, said: “Our new state-of-the-art facility at Chakan incorporates a flexible and agile approach to manufacturing which will ensure that it is future ready and able to respond rapidly to changing customer needs. Key focus areas include people, the environment, connected manufacturing and operational excellence. The plant has been envisioned as the hub of innovation and technology for the Mahindra Group, with several new products, including our new SUV and Pik-Up line rolling out from here. The State Government has worked closely with us to enable completion of this plant in a record time span of 22 months”.

The Chakan plant will have an installed capacity of three lakh vehicles and would eventually be scaled up to meet global demand and standards. It will manufacture Mahindra’s range of products from the 0.75-tonne Maxximo to the 49-tonne Mahindra Navistar truck. The company’s new SUV and Pik-Up range and product line for the US market will also be manufactured at this facility.

The new plant consists of two stages. Stage 1 of the plant which is now being set up on 280 acres, when once fully complete, has a capacity to roll out 200-250 thousand vehicles, altogether consisting of SUVs and pick-up trucks, and another 50 thousand units of medium and heavy trucks. Also the company’s product line for the US market is expected to be manufactured from this facility.

The plant started production of the mini truck, Maxximo, with the Chief Minister rolling out the first vehicle. The company expects the start of production of its medium and heavy trucks, Navistar, within a few days.
The new plant currently has two paint shops and has space assigned for a third one. The shop has been design-protected for water base painting which is an environmental requirement of the future. The salient features of the paint shop include a combined cab and cargo unit on common skid for pre-treatment electro deposition and top coat, as against separate units. Elevated painting robots ensure better reach for the rocker panel, lower portion of the vehicle body and dirt control.

Use of advanced robotic technology ensures a substantial reduction of volatile organic compounds, and the percentage of wastage of raw materials used is minimized. The company plans to set new benchmarks in the industry with this new world class manufacturing plant.

A single conveyer belt with the ability to assemble a wide range of gear box, which are deployed in various Mahindra products, and with a production capacity of 240K per year, has definitely taken Mahindra Chakan to new heights of industrial infrastructure. The plant also boasts of several eco-friendly initiatives which not only mitigate environmental degradation but also reduce waste. Solar energy and waste heat from the oven exhaust are used to reduce consumption of LPG and electricity in the paint shop, leading to reduction of 3,500 tonnes of carbondioxide per annum at full volume.
The use of solar energy is a new concept in the Indian automobile industry, and the plant covering 700 acres has also allotted space for more than 10 component providers to set up their units. This in turn ensures cost reduction and better logistics performance to the company.

Six out of the 10 lots have already been occupied by suppliers, Schuler being one among them.

Ashok Leyland Pantnagar plant's trend-setting technologies

Covering over 190 acres, the Pantnagar plant of Ashok Leyland is also its largest manufacturing facility. With 200,000 sq.m. of built-up area, it houses one of the most integrated manufacturing facilities in Indian commercial vehicle industry. Best-in-class industrial architecture, combined with the latest manufacturing technologies, has created a truly modern facility that is also ecology sensitive as reflected in the selection of machinery and processes.

Highly energy efficient, the plant is designed to be remarkably operator friendly. The shop floors receive the maximum natural light and ventilation while the insulated high roof reduces the inside temperature by up to 8oC in the summer months.

Designed on lean manufacture principles, process control for high quality of output and flexibility to manage variety with quick changeovers are built into the machine and process selection. The factory boasts of latest generation equipment sourced from global leaders in Japan, the US, Europe and India. The plant is a study in layout optimization and flow, contributing to the high benchmarks in productivity and operating cost efficiency. The facilities have been so designed as to accommodate further expansion in terms of capacity and future models. At full capacity utilization, 75,000 vehicles will roll out of the Pantnagar plant.

A large capacity water body has been created for water harvesting, with water treatment and recycling ensuring zero discharge. Over 75 acres, representing around 40 per cent of the total area, is designed green cover area and over 10,000 trees have already been planted.

The plant will be supplemented by neighbourhood facilities put up by key vendors, further boosting employment opportunities.

Frame manufacturing shop

For the first time in India, CNC flexible roll forming technology has been introduced for frame manufacture, offering manufacturing flexibility to form the entire variety of frames and accommodating future model requirements and design changes with no fresh tooling. The flexibility comes with minimum model changeover time, allowing low batch quantities in the manufacturing plan.

Powder coating, instead of conventional liquid painting, eliminates hazardous pollutants while bestowing high corrosion resistance to withstand well over 500 hours of salt spray bath. The change of technology also ensures zero wastage of paint. The CED coating system is lead / tin free, employing robotics and reducing paint wastage. While propane gas cuts atmospheric pollution, the camel back type baking ovens reduce fuel consumption and heat dissipation. All material movement is automated to enhance operational safety and output quality.

Even as it significantly speeds up operations, migration to dry cutting with carbide blades has eliminated use of cutting oil pollution. A closed loop software connected to inspection and cutting machines dramatically quickens the fine-tuned machine setting, in managing the complicated three-dimensional geometry of the aggregates. Clean propane instead of LPG makes for environmental protection and low operating cost.

Other shops

The chassis assembly is designed to be extremely dexterous to produce the smallest to the largest of vehicles in Ashok Leyland’s product range, including the U-Truck range and other cabbed vehicles. The single chassis testing line can test all the models and variants covering various tests, to generate instant test reports.

The integrated axle machining and assembly shop has highly automated front axle machining lines and conveyorised front / rear assemblies, all in one shop. Hazardous operations are performed by robots.

High on automation, the cab weld shop employs robotics in framing and rear body lines, for better quality and improved ergonomics. Manufacture of door assemblies is performed by robotic roller hemming.

The integrated horizontal machining centres (HMCs) complex fed by automated guided vehicles (AGVs) bestow great flexibility to manufacture a range of engine variants, using components rough machined in an adjoining shop. Auto docking and in-process verification systems directly reduce testing cycle time and optimize test cell requirements.

Dust-free enclosure for assembly on skids and material supply in kits for right component assembly of variants are two other features. The shop has the capability to produce both the H and the Neptune family of engines. Past testing, the engines are mated to gearboxes (5, 6, 8 or 9 speed) in an adjoining area.

All the shops have real-time manufacturing monitoring systems installed, which will get hooked and integrated to a centralized computer-controlled automated manufacturing management system. This will facilitate order tracking, maximization of machine utilization, quality trend monitoring, prediction of tool life and prompts for preventive maintenance, among others.

The plant has a state-of-the-art fire hydrant system, backup power generators (75 per cent), 24 km of rain water drains and wide concrete roads for taking care of inbound / outbound logistics. The latest generation electrical lighting reduces energy consumption significantly. The manufacturing, canteen and office buildings have been designed on the principles of green building.
Integrated workforce

Ashok Leyland seeks to utilize its presence in this new location to spread the benefits of industrialization to reach the youth of the region, by creating a stepping stone for them to start a career. Ashok Leyland will sponsor them for 3-4 year courses offered in association with a reputed technical training institute. During the training, they will learn and earn. The curriculum will cover contemporary management and manufacturing concepts, side by side with an opportunity for practical hands on learning at the modern plant. This training will give them the skills and knowledge to be effective shop floor associates and will qualify them for managerial positions eventually, cueing a breakthrough practice aptly called the integrated workforce as it seeks to break the conventional hierarchical divisions on the shop floor.

The primary considerations for Ashok Leyland in putting up the new plant have been to maximize local value utilization and create employment both directly and indirectly for the local population of Pantnagar and its immediate vicinity. The company aims at reaching over 50 per cent of local procurement by the end of the year.

The increase in procurement and utilization of local resources from areas like Uttarakhand and Himachal Pradesh translate into excise duty exemptions and VAT rebates which can be passed on to the end customer.

Several key vendor partners of the company, accorded Preferred Supplier Status, have accepted the invitation to set up their own facilities in Uttarakhand. For Ashok Leyland, this translates into better supply chain management, obviates the need for stores and enables ‘produce to deliver’. The suppliers, on the other hand, enjoy the accruing tax benefits, apart from the guarantee of assured business from a captive client. Another positive is the creation of direct and indirect employment opportunities for local talent.

The Prima all set to rule the road

With the promise of made-to-order customisation, better ergonomics and heavy durability, Tata Motors’ World Truck is set to take over the road.

Colourful and loud, bedecked with religious and other imagery, Tata trucks have been kings of the road. They have been the lifeline of the nation, transporting agricultural produce, water and construction material, and have been an ubiquitous part of highways. Basic and functional, the vehicles have served their purpose for decades, even as countries elsewhere adopted more powerful, ergonomically designed models. But now it is time for truckers in India to enjoy the same driving experience that their counterparts in more developed countries enjoy.

The Prima, the World Truck recently launched by Tata Motors Commercial Vehicle Business Unit (CVBU), is a contender worthy of the global arena. Designed by CVBU jointly with Tata Daewoo Commercial Vehicle Company and with testing refinements from the Tata Motors European Technical Centre, the Prima is as much a harbinger as it is a consequence of the development of India’s road infrastructure.
It was the Rs. 550-crore loss that Tata Motors suffered in 2000-01 that prompted the management to introspect and see the loss as a wake-up call. Mr. R. Ramakrishnan, Head, Sales and Marketing, CVBU, says: “We had to make sure we never got into such a rut again. We also wanted to increase our presence in markets outside the country. Simultaneously, Mr. Ratan Tata, our Chairman, envisioned an identity for us as a world-class corporate.”

Taking the leap

The company realised that the way to put the company on a firm footing would be to help India make the transition from functional low-cost trucks to world-class ones. The leap from being backward in terms of truck technology to producing the equivalent of global technology and competing abroad was too radical to comprehend, even within the company. Employees voiced doubts about the company’s capability, its ability to scale up, the readiness of the market, the state of the roads, etc.

Meanwhile, the Government had announced road projects such as the Golden Quadrilateral and the Pradhan Mantri Grameen Sadak Yojana, which promised to alter the face of the road network in the country. The improvements would make the domestic share of India’s largest truck manufacturer vulnerable to foreign competition. CVBU knew that it had to act fast if it wanted to maintain and grow its position.

A team from CVBU met customers in India to understand their needs. They also visited international auto expos and studied the vehicles there. They learned that trucks in India lagged far behind those in the developed world in terms of technology and even in developing nations like Brazil, China, etc. The truck industry in India had far to go.

Mr. Ramakrishnan observes: “The transition is not going to happen overnight. Trucks in India have been driven largely by the infrastructure and the road network as well as issues of affordability. India is a price-sensitive market.” Additionally, with at least 15 to 20 per cent (in the case of cement even higher) of the cost of any commodity being transportation and warehousing-related, price was a delicate issue. So the World Truck team had to consider the purchasing power of those who would buy the truck and those who would directly or indirectly avail themselves of its services.

The company also had to consider the implications of manufacturing the World Truck. “A truck,” says Mr. Ramakrishnan, “is not a single truck. Applications are varied. Those used in the construction industry transport sand, bricks, stone and even steel from the quarry. They have to ply on-road and off-road. Trucks used for mining work ply in steep gradients, below the earth.”

The variety of applications posed multiple challenges for Tata Motors. “Regulations and conditions are different in different countries. So are customers and drivers. Their needs vary, so we must cater to those needs. The wide range has to be managed in such a way as to get volumes and scalability. The way to address the issue is to make use of the modular philosophy across geographies, models and time”, he explains.
Designed to deliver

According to Mr. Ramakrishnan, the Prima is not just a single truck but a range of trucks covering multi-axle trucks, tractor-trailers, tippers, mixers and special application vehicles. “The range has a carrying capacity of 10 to 49 tonnes in India, in terms of gross vehicle weight. Internationally it can go up to 75 tonnes. There are two-, three-, four- and five-axle trucks. Once these are exhausted, you can add tractor-trailers. It can take engines of different horsepower. Drivers can choose the features, comforts, type of roof, trims and colour. The potential variants go up to more than 1,000.”

With its made-to-order promise, the Prima is poised to take the transportation industry by storm. Mr. Ravi Pisharody, President, CVBU, says: “We have local engineering, design and development capabilities. We have complied with world-class specifications and used world-class aggregates, but the integration has been localised. So we have a cost advantage over the relevant competition.”

So far trucks have been simple, not attaining high speeds because they don’t use very powerful engines. The use of a powerful engine would demand a more rugged drivetrain, clutch, gearbox and axle, adding to the cost.

The improved road network would expose the inefficiencies of the current range of trucks as they can neither overtake speedily nor travel at high speeds. Thanks to its superior machinery, the Prima can truly take advantage of road conditions, cutting down distances by half, reducing congestion on the roads and keeping pace with cars.

Mr. Ramakrishnan says: “Today transporters are paid per tonne per km, and they know that with current roads and vehicles they cannot cover too much distance, and therefore overload the trucks.”

With the Prima, they can carry the optimum load, but get much further and return for a second load. Better ergonomics makes driving a pleasure, encouraging drivers to drive long distances instead of stopping to rest. Also, one driver can drive while the other sleeps in the fully air-conditioned cabin.

At 10 years with the first owner, the Prima’s useful life is twice as much as the five years of current trucks, thereby slowing the rate of depreciation and increasing its resale value. Most of the reliability and durability analyses indicate roadworthiness of around a million kilometres.

The Prima also requires much less routine servicing, ensuring that the truck is available for use for longer periods. Tata Motors guarantees that it will be available for more than 330 days a year. “The Prima will be a more cost-effective way of transporting, despite its higher cost. It will help transporters reduce costs, thereby lowering inventory. It will help truckers to improve their deliveries and increase business,” avers Mr. Ramakrishnan.

The company is currently engaged in training drivers to drive the Prima. Mr. Pisharody says: “Before the customer buys the Prima, we make sure that each vehicle has two trained drivers. This will ensure that the drivers are not intimidated by the vehicles and that they are able to run it efficiently and get the best out of them. Also, for the first few runs of the vehicle, our service engineers will travel with the drivers.”

This initial handholding is bound to increase the confidence of drivers and customers. The company plans to have a service centre every 100 km across the country.

The Prima has been extensively tested for environment and safety standards in different conditions and countries and for different laws. The components have been tested by the suppliers and by Tata Motors. CVBU has sourced aggregates and components from different parts of the globe. For example, the cab styling is from Italy, the engine technology is from Cummins Korea, and also from Iveco, and the gearbox is from Eton of the US. The expertise and knowledge of all these people have contributed to the making of the World Truck. The trucks also conform to the weight and dimension norms of different countries. CVBU is confident that with the Prima, it will be able to deliver the lowest lifecycle cost anywhere.

Tapping new markets

The Prima now has its sights set on the world. The first phase will include India, Korea, South Africa, the Middle East and parts of Eastern Europe, including Russia and Ukraine. The second phase will see the truck in Latin America and the developed nations in Europe.

At home, large operators have shown interest in the Prima. Mr. Ramakrishnan believes that financiers prefer to finance a reliable vehicle on which repayments instalments come faster. This will prompt a shift in market demand. The next wave of the market will ride on a ‘wait and watch’ policy.

“In the first few years, we don’t expect the World Truck to contribute significantly to our market share of around 70 per cent,” says Mr. Pisharody. “Initially, it will be just concept selling. We have to get our customers used to the vehicles and the economics. But over time, we are confident that our product will get established and grow its share of truck sales.”

With the Prima, India can truly lay claim to having arrived on the world trucking stage. It is now up to India’s transportation industry to share this successful makeover.

DARCL Logistics confident of achieving Rs. 5,000-cr turnover level

Mr. K.K. Agarwal, Charman & Managing Director, DARCL Logistics Ltd., who steered the company over the years to make it a major logistics services provider in the country with an annual turnover of Rs. 1,000 crores in the last three years, feels that there is immense potential that remains untapped in the sector. He is confident that with dedicated team work, the company would certainly be able to achieve a turnover of Rs. 5,000 crores in a few years.

The company is now in the process of revisiting its strategies for faster growth. With a vast network covering 200 locations, trained team of more than 2,300 members and warehouses in over 20 cities. DARCL has become one of the acknowledged industry leaders in the country.

Efforts are on to expand its 2-000-strong customer base by focusing on various existing and upcoming sectors like power, projects, telecom, and infrastructural and manufacturing units, backed up with dedicated professional teams. They will also take care of other niche segments like ODC movement, project logistics, multi-modal and rail freight forwarding, transrail, liquid transportation, allied services and third party logistics.

Similarly, to provide further impetus to its multi-modal solutions, DARCL has established a wholly-owned subsidiary, Transrail Logistics Ltd., for containerized rail transport of goods. Transrail has been licensed by Indian Railways to provide both exim and domestic container transport services. With its own containers and rakes, it intends to have its own terminals in major industrial hubs and will run scheduled container train services on various routes to garner larger volumes and ensure faster turnaround of trains.
The company already owns one rake comprising 40 wagons with capacity to carry 80 containers, running between Kolkata and Mumbai, and another rake is expected by the end of this financial year. This will help DARCL as a group to serve its customers better with more reliable, cost-effective solutions.

The company is busy recruiting competent and professional persons to manage and drive the growth. Mr. Agarwal says that the sector needs to get more organized. Quality with cost-effective service is what would be the differentiator in future, particularly when the logistics costs in India are 13-14 per cent of GDP as against 8-9 per cent in the West.

KAMAZ Vectra’s first truck model launched in India

The joint venture set up by India’s Vectra Group and the Russian KAMAZ Inc. has launched the KAMAZ 6540 tipper model of GVW 31 T, an 8x4 dump truck, in India. This is the first launch since the signing of the JV agreement by the two in Bangalore in April 2009.

The KAMAZ 6540 tipper model of GVW 31 T is built on a multi-axle of 8X4 configuration with 260 hp and torque of 1060 NM. The high power V Type arranged overhead cam engine, boosted by twin turbochargers, offers extra tonnage and longevity. The special 8X4 integrated axle design lends high level of stability coupled with manoeuvrability, even weight distribution on the wheels that effectuates high road grip and low stress on tyres. The low CG body is balanced on all specified speed operations. The truck is inexpensive to maintain and repair due to its simple design and easy handling by any trained technician.

The tipper model is ideal for use in construction of roads & bridges, irrigation canals and infrastructure projects that demand continuous and tough duty cycles. It is competitively priced and thus will enjoy good market demand.
In 2007, KAMAZ decided to enter India’s automobile market, one of the largest and fastest developing markets not only in Asia but in the world. After studying the market and resources of its potential partners, KAMAZ partnered with the Vectra Group of Companies due to its production base, broad experience in India’s automobile market and adequate financial resources for investment on the joint venture. In March 2009, the partners signed the memorandum of understanding and thus was born KAMAZ Vectra Motors Ltd. with an annual capacity of 5,000 vehicles.

Under the agreement, the partners established a production and engineering centre for KAMAZ’s business development in the left-hand traffic countries of Asia Pacific and Africa. This centre will develop new products taking into account the needs and preferences of local customers and will localize vehicle production. In the initial stage, the project planned to assemble several models of vehicles equipped with side platforms and construction dumpers based on the KAMAZ-6540 chassis with right-hand steering wheels, as well as production of KAMAZ-5460 long-haul tractors.
KAMAZ thus managed to enter the prestigious Indian auto market by partnering with the Vectra Group.

KAMAZ trucks are recognized the world over for their reliability and sturdiness. The company works hard to provide customers with the widest range of services possible, including supply of vehicles and spareparts and maintenance. KAMAZ pays a great deal of attention to the service arrangements wherever it has operations by engaging local personnel and experts.

DLT to address India’s diverse transport equipment needs

India’s decision to focus on infrastructure development and TRF Ltd.’s quest to diversify its portfolio occurred almost simultaneously. Once TRF made the move into auto applications, the company also recognized the need to secure capabilities in trailer assemblies and vehicles so that it could straddle this market segment. Growth in the auto application business has so far been inorganic with TRF acquiring York Transport Equipment, Singapore, Dutch Lanka Trailer Manufacturers Ltd. (DLT) and Adithya Automotive Application Pvt. Ltd.

Established in 1992, with Dutch technical collaboration, DLT is one of the leading manufacturers of trailers and semi-trailers in the South Asian region. It caters to the demand for trailers in this region, as well as in South Asia, Africa and the Middle East. In the last 14 years the company has designed and developed almost the entire range of port-related trailers such as Skeletal Classics, Bomb Cart, RORO and bunded trailers as well as fuel tanker refuellers. DLT has extremely strong in-house design capabilities and has developed customized products to meet individual customer needs.

The design team uses the most advanced CAD software with 3D Modelling. These models are then analysed using Finite Element Analysis (FEM) stress and deflection to optimize the design quality of its products. These designs are handed over to an extremely proficient manufacturing team which uses the latest fabrication equipment to offer customers the twin advantages of a high quality product at the minimum cost.

DLT entered the Indian market in June 2005 under a joint venture with Tata International Ltd. (India) with the brand name Tata DLT. Now as a TRF Group enterprise it will ramp up production by as much as five times to meet the needs of a rapidly growing industry.

DLT’s tipper trailers are ideal for bulk transport of clinker, coal, metal, soil, sand, scarp, rubble and rock upto a capacity of 60 tonnes. Lowbed trailers are designed to transport heavy cargo such as machinery and equipment, military hardware and oversize cargo.

DLT’s Flatbed trailers can be used for a variety of applications, including loose or containerized cargo, while its skeletal trailers are designed for transportation of containerized cargo. They can also transport mounted tank, mobile container offices, etc.

Carlos Ghosn’s game plan for Indian market

Renault-Nissan is looking at the burgeoning Indian automobile market with the sole idea of playing a significant role in it over the next 10 years. The purpose of the recent visit to India of Mr. Carlos Ghosn, CEO of the Renault-Nissan global alliance, and his team was to finalise the strategy for the booming Indian market.

Addressing a press conference in Chennai on the eve of the inauguration of the Renault-Nissan Alliance plant, Mr. Ghosn said the joint venture project doesn’t really want to be a niche player in India by selling imported cars but to develop into a full-fledged player through local manufacturing with locally sourced parts. The initial plant capacity of 200,000 cars by 2012 will be scaled up to 400,000 cars in 2015. The partnership philosophy in India would be based on sharing of technology and experience with the partner who, in turn, would bring in frugal engineering and product planning, thus improving the potential to produce vehicles for the developing markets.

It may be recalled that Mr. Ghosn signed a series of joint ventures during his Indian visit two years ago, identifying potential partners for both Renault and Nissan in the Indian market. In a short while, he became the poster boy of the automotive industry in India. The agreements signed were for the JV with Mahindra and Renault to manufacture Logan, the tie-up with Ashok Leyland and Nissan for LCVs and with Bajaj for developing an Ultra Low Cost (ULC) car, and a pact for setting up of a green field facility in Chennai jointly by Renault-Nissan and Mahindra.
There have been a lot of developments over the last two years, and things have really not progressed the way Mr. Ghosn would’ve wanted. The JV with Mahindra for the Logan project has not met with much success. Also Mahindra, which was one of the partners in the setting up of joint manufacturing facility in Chennai, withdrew its plans later. With the global recession spreading fast, the AL-Nissan JV slowed down, and the plan to set up an independent manufacturing facility was put on hold. The Bajaj ULC project too remains uncertain.

It is against this backdrop that Mr. Ghosn had a lot of questions to answer. Referring to the JV with Ashok Leyland for LCVs, Mr. Ghosn said that the project is reaching fruition. The first product from the JV, to roll out by 2011, will be from the existing locations of the partners, namely, the Renault-Nissan plant in Chennai and possibly the Chennai or Hosur unit of Ashok Leyland. The greenfield project for the new product, which remains frozen due to the global crisis, would be resumed as soon as the market conditions improved. The first prototype of the vehicle to be launched in the Indian market through the JV was recently presented to the Director of the JV.

Mr. Ghosn also confirmed that negotiations with Ashok Leyland for a possible small car project have just been initiated.

On the ULC car project with Bajaj Auto, he observed that the project work is in progress and the car would be manufactured jointly with Bajaj. More details on the project would be announced after a formal contract is signed with Bajaj. There are, however, no plans to produce this car at the Chennai facility.

With regard to the company’s JV with Mahindra for the Logan project, Mr. Ghosn said: “We are not very satisfied with the evolution of our sales with Logan but this is something that we have shared with our partners and both agree on the same. It is mutually agreed by both the partners that the market response to the Logan has been below expectations. There are discussions at this point for the repositioning and further simplification of the car and it looks like we need to be more nimble and little fast with the market. As soon as these discussions reach a conclusion they will be announced. Until then the Logan will stay on the roads and will continue its regular life cycle in the country”.

Mr. Ghosn further made it clear that he wants to build cars locally in order to become a volume player rather than a niche player. “India is in our opinion going to be one of the largest car markets in the world. Currently the market size is around 2 million cars a year and there is potential for the market to cross the 5 to 6 million mark in the next 5 to 10 years. The global market is also slowly shifting from west to east and from north to south and we want to play an important role in this market development. India is a complex market and we need to be attentive to its evolution, we need to make sure that in terms of products, in terms of performance we are always fine tuning and adapting our products if we want to be contributing to this market and be competitive. We want use the Indian resource to be competitive in the global market”.

Regarding new model introductions in the small car segment, he said: “The Micra is coming at a very important segment in the Indian market which is the B+ market. Below the B+ we have the B, A and A-segment. We have so far nothing in all these categories and this represent more than 50% of the total market size. More importantly, it represents a big percentage of the market in many developing countries. We are addressing not just the Indian but many developing countries where people would like to buy cars at affordable price”, added Mr. Ghosn.

On the new Chennai plant, he said: “The new plant in Chennai has been established with a capacity to manufacture 400,000 cars, In the first phase the company hopes to achieve a volume of 200,000 units by 2012 out of which more than 50% of the capacity will be exported and the balance will be sold locally. Apart from the Micra, the company plans to assemble 3 Nissan products and 2 Renault products in the Chennai plant”.

Regarding the strategy to have multiple partners, Mr. Ghosn said: “The fact that we have multiple partners allows us to learn more. We are here not just to manufacture and sell but to learn about frugal engineering, frugal product planning, how to make big output with very small investment. What we learn here can be used in many other emerging markets. Not just in the markets which we know of today but many other markets which will emerge in the future.

RENAULT-NISSAN inaugurates Chennai plant

The Renault-Nissan Global Alliance recently kick-started production at the new state-of-the-art plant on the outskirts of Chennai. The plant, covering a massive 640 acres of land and set up at an investment of Rs. 4,500 crores, will have a total capacity to manufacture 400,000 units per year at full ramp-up.

The new plant was inaugurated by the Tamil Nadu Chief Minister, Dr. M. Karunanidhi, in the presence of Mr. Carlos Ghosn, Chairman & CEO of the Renault-Nissan Global Alliance.

In his address, Mr. Ghosn said: “Our plant in Chennai represents a key milestone for the Renault-Nissan Alliance in India. With the new Micra, we have the start of a product offensive in India that is supported by a localized manufacturing facility capable of making products for both Renault and Nissan.”

Mr. Akira Sakurai, Managing Director and CEO of Renault-Nissan Automotive India Private Ltd., said that the opening of any new plant is a significant achievement, but the speed and quality of execution at this point in Chennai has been exceptional.

The first vehicle to be produced at the plant will be the new Nissan Micra, a global sub-compact. The Micra, which is also the first vehicle derived from the new V-platform, is destined for the Indian market as well as for export to over 100 countries in Europe, the Middle East and Africa. In 2011, the plant will start production of the Renault Koleos and Fluence, both designed for the Indian market.

The facility will operate in full compliance with Alliance’s global manufacturing processes and quality standards. The production management system, launched for the first time at any plant of Nissan and Renault, is based on mutual knowledge sharing and the best practice from both companies.

The new manufacturing process allows the plant to seamlessly mix production of both Renault and Nissan products on the same line. The company has planned to produce three varieties – an hatchback, a sedan and an MPV. The new car produced from the plant will have a high level of indigenization of close to 85 per cent.

The supply park, within the facility, will be hosting six dedicated suppliers for Renault-Nissan. Unipress has already taken a big slot in the supplier park. The plant also hosts two test tracks for carrying out testing of the new models.

The modern facility has a reverse osmosis unit for treating the discharged water. The recycled water is again used for production purpose, thus making this plant as the first zero discharge facility, a truly amazing motto that cares for the environment. The plant is expected to set very high standards in quality in the Indian automobile industry. The product quality is expected to be top class.

The New Micra will be hitting the Indian market by July. The new advanced production line enables reduction of the car’s total weight by 40-90 kg when compared to its predecessor. This weight reduction was achieved by removing nearly 80 parts from the total number of components in a car.

The New Micra looks stylish and elegant and is all set to enter the Indian B segment. The company has not yet priced the vehicle for the Indian market and plans to export 1.8 lakh vehicles to nearly 100 nations, mostly in European and African markets.