Tata Motors well geared to meet growing competition

 MOTORINDIA’s exclusive interview with Mr. Ravi Pisharody, President - Commercial Vehicle Business Unit, Tata Motors Ltd.

Tata Motors is not only India’s largest automobile company with consolidated revenue of Rs. 1,23,133 crores ($27 billion) in 2010-11 but is also currently the second largest bus manufacturer in the world. The company’s sustained bid is to become one among the top three global truck manufacturers. With slack growth in the European auto industry, it is not that difficult for India’s popular and trusted commercial vehicle brand to become the world leader in the coming years. The company, with indigenised technology, has several milestones to its credit. It is also one among the few Indian firms with global operations covering the UK, South Korea, Thailand and Spain.

In an exclusive interview to MOTORINDIA, Mr. Ravi Pisharody, President - Commercial Vehicle Business Unit, Tata Motors Ltd., explained how the company is working out its strategy to tackle the mounting competition from rivals in the field and expand Indian and overseas operations, undeterred as it is by general industry apprehension over slowdown in the wake of economic uncertainties.

Excerpts:

MOTORINDIA: As the world’s 4th largest truck manufacturer and the 3rd largest bus manufacturer, what is the next goal set by your company?

Ravi Pisharody: Tata Motors has already become the second largest bus manufacturer in the world and is aiming to be among the top three players in the truck segment. The company has a brighter chance to improve its leadership position in view of the weakening European economy.

MI: How do you view India’s CV market vis-a-vis other emerging economies?

RP: In the last two years, the CV segment in India has been growing steadily with 25 per cent CAGR even though there is a decline in the European market. The market in other BRIC nations, i.e., Brazil, Russia and China, is also growing steadily as in India. The market is expected to grow around 15-17 per cent in the next five years.

MI: As a pioneer in the field of commercial vehicles, could you please mention some major milestones achieved by the company since inception?

RP: Being India’s largest commercial vehicle manufacturer, Tata Motors has several milestones to its credit. For example, the most successful and indigenised Tata 407 LCV launched in 1986 has a whopping market share of 70 per cent. Incidentally, this is the Silver Jubilee Year for the 407 brand. The runaway success of the mini truck Tata Ace launched in 2005 is a classic example of how the company strategy works. Similarly, Winger, the only real van in India launched in 2008, followed by the introduction of the Prima range of world-class truck platforms in 2009. Last year, the company came out with the first hybrid bus. Besides, it is a pioneer in introducing radial tyres for commercial vehicles.

MI: As the fleet and bus operators in the country are heavily burdened with different levies, do you have any plan of bringing out low-cost trucks and buses with higher fuel efficiency?

RP: No doubt, customer satisfaction is always the top priority for Tata Motors. Keeping this in mind, the company offered several benefits to truck and bus operators by introducing advanced technology. For instance, while upgrading the platform from BS II to BS III, the vehicle ensured minimum five per cent better fuel economy with vast improvement in quality as well as with the fitment of power train. The goal is to offer minimum five per cent extra fuel economy whenever the company comes out with new products. Even the Prima truck operators are able to achieve substantial savings and benefits because the vehicle runs 20 hours a day smoothly.

MI: What is the company strategy to tackle the growing competition in the commercial vehicle segment?

RP: Predicting the growing competition arising out of the entry of more players, including multinational companies, Tata Motors is well geared to meet the onslaught. Today, both the Prima trucks and Marcopolo buses come with several unique features that ensure global standard.

MI: As part of CSR activity, have you taken any new initiative in the areas of driver training, safety, fuel saving, etc.?

RP: The company always believes that driver training is very important, and it plans to set up five more institutes before March 2012.

MI: Could you cite a few leading loyal company customers with vast vehicle fleet and with decades of relationship?

RP: Since the company maintains strong and cordial relationship with vehicle owners, it indeed has a unique generation-wise customers. Tata buses and trucks have also become a most preferred choice not only in the private segment but also among STUs. The company has huge fleet owners of MHCV trucks all over India.

MI: Many passengers seem to prefer to travel by buses from competitors that offer better riding comfort and amenities. When can we expect technology upgradation from Tata vehicles to offer improved travelling facilities for passengers?

RP: In order to increase its market share in the luxury bus segment, the company has already had its major focus on the fully-built vehicle delivery rather than supplying only chassis. This has helped the company a lot in getting a major share of city bus operations.

MI: What is your current market share in buses and trucks?

RP: No doubt we are the undisputed market leader in trucks with around 68 per cent market share and the single largest bus manufacturer with 47 per cent share.

MI: Any plan of launching new bus or truck models this year?

RP: Of course, introducing new products is always a high priority for the company. For this, Tata Motors has been introducing several new products with advanced technology, and the recently launched Xenon CNG pick-up in New Delhi is one of the finest examples of the company’s successful approach. The company is planning to launch more variants in the Prima range – tippers and tractor trailers apart from bringing out BS 4 variants in 16 ton and 25 ton trucks. It also proposes to showcase its innovative technology products at the forthcoming Auto Expo in New Delhi.

Mr. Ravi Pisharody, with his rich experience and expertise in the automobile industry, has been the driving force behind Tata Motors’ growth and continues steering the company to achieve greater heights.

SIAM Annual Convention 2011

Tata Motors gets largest order for trucks from single fleet owner

Tata Motors has received its largest order ever of medium & heavy commercial vehicles from a single fleet owner. The order is from Siddhivinayak Logistics Ltd. (SVLL), based in Surat, to supply 1,111 M&HCV trucks, to be delivered during the year.

SVLL is one of the largest fleet owners in the country, owning a fleet of over 2,000 commercial vehicles. The company operates across diverse segments like steel, cement, tractors, chemicals and machinery and is a pioneer in new segments like commercial vehicle chassis carriers. It plans to start transporting farm fresh fruits and vegetables through refrigerated containers on the Tata Prima.

Said Mr. R.C. Baid, Founder and Chief Mentor, Siddhivinayak Logistics: “We purchased the first Tata vehicle in 1988, and since then have been purchasing their M&HCV and LCV trucks. We appreciate the quality of Tata products, customer engagement initiatives and their extensive service network. We would like to continue our association with Tata Motors and expand our business with Tata Motors vehicles. It is in this light that we have placed a bulk order of 1,111 vehicles.”

Mr. Vinod Sahay, Head - Sales & Marketing (M&HCV Trucks), Tata Motors, observed: “We are delighted to receive this order and would like to thank SVLL for their continued trust in our brands. We will be commencing deliveries this month and plan to complete the order by the end of this financial year.”Tata Motors M&HCV sales in May saw a growth of 12 per cent over May 2010. The company currently has a 70 per cent market share in M&HCV trucks.

First Volvo CNG low-floor city bus introduced in Delhi

Volvo Buses has announced introduction of its first Volvo 8400 low-floor CNG city bus in Delhi. Mrs. Sheila Dikshit, Delhi Chief Minister, flagged off the first bus from the Delhi Secretariat. His Excellency Lars-Olof Lindgren, Ambassador of Sweden to India, and Mr. Akash Passey, Managing Director, Volvo Buses India Private Ltd., were present on the occasion, besides Ministers and other senior officials from the Delhi Government.

The Volvo City Bus Experience, already operating in 12 cities of India, will now commence in the national capital through its CNG version. This initiative has been made possible with support from the Delhi Transport Corporation (DTC).

The Ambassador of Sweden to India said on the occasion: “Delhi has done a commendable job by adopting CNG as the fuel option for public transport. They have shown the way for other cities in India that are also eagerly opting for natural gas over other fossil fuels. Volvo has been at the forefront of innovation in mass transport solutions and has always displayed a keen interest in developing vehicles that are beneficial to the environment as well as the public in general. This initiative is another milestone for both the city of Delhi and for Volvo Buses”.

Mr. Akash Passey observed: “At Volvo Buses we have a responsibility – to make public transport more attractive in order to encourage people to adopt public transport. This is something we have successfully implemented across 12 cities in India. With the Volvo CNG city bus, we are now advocating both mass transport and environmental benefits to people. Over the years Volvo Buses India has established its credibility in offering the best urban transport solutions. We already have a majority share in the low-floor diesel AC segment, and are confident of consolidating this position with the CNG variant.”

Backed by world-renowned Volvo technology, this CNG variant of the Volvo city bus is built in India by a highly experienced team of experts from Sweden and India. The availability of CNG variant highlights Volvo’s increasing resourcefulness to cater to dynamic customer needs and drive the change.

The CNG city bus will be built at the state-of-the-art manufacturing plant of Volvo Buses India in Hoskote near Bangalore. Like all products from the Volvo stable, the CNG city bus adheres to the highest quality, safety and technology standards. The high-performance CNG engine has been designed to meet the rigours of city driving conditions.

The Volvo 8400 low-floor CNG city bus has the best power-to-weight ratio in its class and a perfectly matched driveline enhances the driving performance. This product typifies the strengths of Volvo in terms of reliability, better performance, optimal operating costs, passenger and driver comfort and safety.

The CNG variant also houses the new transmission from Volvo – Ecolife, which aims to offer the driver and passengers a superior drive experience. It offers significant fuel reduction opportunities due to a fine-tuned optimised gear system which operates at the most efficient speed ranges in terms of fuel consumption. It has been equipped with intelligent systems to recognise when a vehicle is moving into idle or into gear thereby reducing fuel consumption again. This bus will now have an even stronger retarder system which ensures that the ride is even more jerk-free than ever. There is also far less noise in turn and much lesser heat passed onto the brakes.

Mr. Akash Passey added, “For us at Volvo, bringing the CNG variant is more than just about another fuel. It showcases our intent of being an environmentally responsible organisation committed to drive the change that will be beneficial to all. The Volvo CNG city bus will create a benchmark for others to follow.”

Volvo Buses has been in India for more than nine years and has the richest experience when it comes to high-performing bus applications. This, coupled with its state-of-the-art factory and overall profile of being a complete transport solutions provider, gives it a unique ability to be in a position to understand the needs of the Indian market and configure products accordingly.

The automatic transmission assures fatigue-less driving for drivers and a better bus ride for passengers. The low turning radius helps the bus move through crowded traffic with ease. The right power-to-weight ratio of the engine allows quick deceleration and acceleration across various terrains. The retarder system ensures that the bus movement, including braking, is almost jerk-free for passengers.

The electronic air suspension takes bus comfort to a new level. Of course, the Volvo buses’ in-climate control along with the above features provides an excellent environment to passengers making it a perfect setting to opt for a public transport over personal transport.

Volvo City Buses are today part of most successful city bus systems in the world including Bangalore, Pune, Chennai, Mysore, Hyderabad, Navi Mumbai, London, Shangai, Hong Kong, Curitiba, Mexico, Finland, Sweden, Singapore and many more.

Kamaz Vectra stabilises market in India

New products to roll out soon

Russian truck major Kamaz is in India for the long term. With over 200 trucks on Indian roads within six months of its launch, Kamaz Vectra Motors Ltd. (KVML) has laid strong foundation for future growth in India. Among the many global players that’ve entered the Indian market in the last few years, Kamaz is showing a lot of promise and commitment. For Kamaz, India is not just another market, but “It is the most important market for its future growth”.

KVML is a joint venture between Kamaz OJSC and the Vectra Group (51:49). The company offers its 31-tonner dump truck Kamaz-6540 (8x4) with 19-t legal payload. With more orders for trucks on hand, the company has announced expansion of its product range. “We will launch the 6X4 tipper and 4X2 tractor in September 2011 and 6X4 heavy duty tractor by November. All these products are currently undergoing test. By the end of this year, we will have the complete range to offer – 8X4 tipper, 6X4 tipper, 4X2 tractors and 6X4 tractors”, says Mr. Denis Trifonov, CEO of KVML.

KVML has set up a plant at Hosur with an annual capacity to produce 5,000 trucks. Currently the company is assembling the Kamaz-6540 tipper, and it will shortly start production of tractors Kamaz-5460 (4X2) and Kamaz-6460 (6X4), as well as Kamaz-6520 dump trucks. The company has localized most of the key aggregates achieving over 70 per cent indigenisation. With the existing products and the proposed launch of new products, the company has set an ambitious target to sell 2,500 units during 2011-12. The company commands 18 per cent share in the 8X4 truck market in the very first year.

Mr. Denis Trifonov commented: “Our major customers are mining and construction companies. Our trucks are operated in extremely severe conditions in coal and iron ore mines. We are also negotiating with the sea ports which are extending their territories”.

“Our trucks have been tested and adapted to suit Indian conditions. We have introduced more than 300 enhancements and design changes on our trucks to suit the local conditions. We now have 72 per cent local content on our trucks, including transmissions sourced from ZF and brake systems from Wabco in India. We are now offering Cummins engines as an option for our customers. Apart from the cabin, axles and suspensions, all other major components are being sourced locally”.

The current offering Kamaz-6540 is equipped with Kamaz V8, 281 hp Euro 3 engine with the option of Cummins 285 hp Euro 3 engine. The truck is fitted with two fuel tanks of 210 litres displacement each, which will allow lengthy truck operations without refuelling. It can carry up to 18 m3 cargo and its tipping angle during the unloading can reach 55°. KVML is offering four different variants of the 6540 model – 16 cum box and Rock body, 18 cum box body and 20 cum box body.

The Kamaz 6540 is currently used mostly in road construction projects by construction companies “We see the future is for 8X4 tippers for construction and on-road applications. The 6X4 will be used for mining transportation, and for deep mining application the company plans to launch an 8X4 49 tonner heavy duty tipper by February 2012”, added Mr. Trifonov.In September KVML will also be launching the longer wheel base chassis for super structures on its 8X4 models for applications like cranes, concrete mixers, boom pumps. The company will be signing an MoU with crane manufacturers soon for the purpose.

Kamaz is strengthening its presence across India. Initially, the company had bagged big orders from the east and western regions, and in the last three months, the company has started selling good numbers in the South. “We finally managed to establish that we are the best solution for their logistic requirements”, say company sources.

KVML is in the process of establishing a dealership, sales and service network across India. The company is represented through dealer and service network in 15 states, mostly in the South, West and East. KVML, through its dealership, has also started mobile service workshops, with a service touch point every 300 km on the national highway, and the target is to reach a stranded vehicle or a customer within a maximum of 3 hours time”.

Considering the growing demand for its products, KVML is investing an additional $4 million on the plant for setting up a second assembly line for all the new products.

Mr. Trifonov says: “The Indian plant will not only serve the domestic market but will be a regional hub for other nearby markets, particularly for right-hand drive markets. This year we will focus only on the Indian market, and for the next year we have already signed contracts for exports to South Africa. We are also looking at exports to Bangladesh and Indonesia”.

Mahindra Navistar sets fresh standards in trucking industry

The next time you drive out of your city, you might pass through a swanky new showroom, and you could well mistake it for an Audi or BMW outlet. No, it’s the all-new Mahindra Navistar truck dealership. A total of 35 such dealerships have been set up in all major cities and trucking centers across India and another 35 are under construction.

The dealership boasts of features like truck display area, customer lounge, a well-equipped workshop, spare parts availability, mobile service vans and, most importantly, a rest room for drivers, not just for those who are getting their vehicles serviced but for any Mahindra Navistar truck driver, says Mr. Nalin Mehta, Managing Director, Mahindra Navistar Automotives Ltd. (MNAL).

“OK is no longer OK”, has been the famous tagline of MNAL, and from the very beginning the company is attempting to revolutionize the Indian trucking industry by challenging the norms. For the first time in the truck Industry, MNAL has initiated a Corporate Identity Program to create a uniform dealership identity and experience to ensure that the dealerships remain benchmarks for the commercial vehicle industry.

This is just one of the many ways by which MNAL is trying to differentiate itself from competitors. The commercial vehicle industry is going through a very interesting phase. In the next couple of years, it will become a level playing field, where all manufacturers will offer similar products, with very limited scope for product differentiation. Factory-built cabs, higher hp power engines, more efficient aggregates will all become a standard feature on Indian trucks. What is going to be different is the after-sales and service support that manufacturers offer. This includes quality of service, availability of spares, overall maintenance cost, driver training, highway breakdown service and driver helplines. All these will be key differentiators in the industry, and these are precisely the areas which MNAL is working on.

Within six months of launch, MNAL truck sales have crossed the 1,000-mark. The company has set an ambitious sales target of 50,000 HCVs and 20,000 LCVs in the next three-four years time. The current product range includes an MN25 6X2 haulage truck, MN25 tipper, MN31 8X2 haulage truck and an MN40 tractor. All these trucks are fitted with 210 hp MAXXFORCE engines. MN 40 comes with an electronic 260 HP option. The company is planning to launch a 25 tonner 6X4 heavy duty mining tipper and a 49 tonne tractor for ODC application, both fitted with 260 hp engine, by the end of the current year.

MNAL has established a full-fledged application group to look into various applications. The company is planning to offer chassis specifically suited for applications like tankers, bulkers, concrete mixers and other special applications.
Mr. Mehta says: “A few things have got established in the market. First is durability, thanks to the robustness of the design, manufacturing and testing procedure. Many of our initial trucks have now crossed 100,000 km. Customers have not faced any major issues with the vehicle. Second is the cabin comfort. We have huge advantage in the cabin. Drivers have given a thumbs-up to our cabins. Our cabs are helping improve driver efficiency. Third is fuel efficiency, our engines are doing very well even under overloading conditions. Overall, our truck specs are designed to provide faster turnaround time, which is evident from the feedback we received from our customers. Customers are earning more from our truck, and we are helping them out-perform”.

After-sales support

MNAL has clearly understood the importance of a very efficient and effective after-sales service support right from day one. It has established NOW, a 24/7 toll-free helpline service, which has been the highlight of the journey so far.

Mr. Mehta observes: “Our call centre is one initiative which has caught the attention of our customers. It is backed by engineers, more importantly multi-lingual engineers. A driver speaking in Tamil, getting reply in the same language by a technical person who understands the problem, makes a big difference. This gives huge comfort to the driver.”Within just six months of launch, MNAL has established 35 sales-service-spares dealerships across the country. The target is to have 100 dealerships in the next 18 months. Apart from the 3S facilities, the company has tapped the existing Mahindra automotive division network to set up over 220 authorized service centres (ASCs), which will have trained mechanics and spares. These ASCs, mapped and connected with the company’s helpline, can undertake warranty repairs, service and breakdown repairs.

In addition to the ASCs, the company has 29 mobile workshops. These are typically built on an HCV chassis equipped with spare parts and washing bay and are equipped to handle servicing of key aggregates. Each mobile workshop is backed by parts availability, and all these mobile workshops are mapped and connected with the helpline. It established nine fast response centers for spare parts and is able to reach parts within a few hours anywhere in India.

It doesn’t end there. MNAL has tied up with MyTVS to provide highway roadside assistance. The company already has 454 road-side assistance mechanics who are all company trained. Their role is to provide emergency roadside assistance. They are also connected to the call centre. They are now able to reach a stranded truck in a few hours. “We have managed 700 to 800 touch points within months of our launch. Our plan is to have 100 3S (sales-service-spares) dealerships, 330 + authorized service centers and 950 road-side assistance in the next 18 months”, adds Mr. Mehta.

Driver training

“As an organization the company is helping its customers to outperform. Starting with the bigger industry issue, driver shortage, it has started a driver training program. But it’s not just training drivers but trying to find out ways to improve their efficiency. Accordingly, a cabin has been designed to provide the highest levels of comfort and safety, which will result in improved productivity.

MNAL has trained 800 drivers so far at its training centre in Pune. With increasing demand the company is planning to open regional driver training centers.

As part of the driver training programme, the company provides complete vehicle familiarization and trouble-shooting training, training on safe driving practices, PCRA-led training on economic driving, including road test and star rating, medical examination, health awareness programmes and a visit to the ‘state-of-art’ manufacturing plant at Chakan. MNAL also provides a one-year accident insurance of Rs. 1 lakh to each driver.The company has also tied up with the Ex-Servicemen Association where it is offering training program for those who are on the verge of retirement. This helps in catering to the overall requirement for drivers in the truck industry.

The company has been doing well in the west, south and eastern markets and has also announced plans to export trucks to overseas markets like South Africa and SAARC countries, particularly for right-hand drive markets.

Mr. Mehta concluded saying: “The industry is looking for an alternate player. We have a product which is relevant to the market, and the industry is clearly moving in that direction. We have put the right investment in the plant. The robustness and durability of the products has been established beyond doubt. The sales and service network functioning is far beyond our expectations. The experimentation with roadside assistance has worked wonders. The driver training program has been very successful, and our product has started earning more for the operators, and they’ve acknowledged this”.

SML Isuzu launches the most powerful 12T truck in India

SML Isuzu Ltd., the joint venture of Swaraj Mazda Ltd., Isuzu Motor Corporation and Sumitomo, has launched the first Isuzu branded truck, marking the entry of Isuzu into the Indian truck segment. The first truck launched with the Isuzu badge is a 12-ton GVW medium duty cargo truck.

The Isuzu IS12T was launched in Chennai and the first vehicle was handed over to Gaurda Logistics. The all-new Isuzu IS12T is fitted with Isuzu 150 hp, 4-cylinder, BS 3 common rail engine and 6-speed Isuzu gear box, making it the most powerful in its class. Both the engine and gearbox are imported directly from Isuzu, Japan.

The vehicle comes with three chassis options – cab and chassis, cab with load body and cab with high deck body. The fully-built truck with cab and cargo body is priced at Rs. 14 lakhs.

This is the first launch for SML Isuzu in the higher hp segment. Normally in this segment most trucks are fitted with 100 to 125 hp engine. The Isuzu IS12T is the first in the segment to be fitted with 150 hp engine. This helps in faster turnaround time resulting in more trips and more productivity for the customer.

The truck is built with more powerful aggregates for heavy duty applications, including Meritor axles, Wabco brake systems and Rane power steering system. It comes with power steering as a standard feature.

The 150 hp Isuzu engine is fitted with common rail direct injection pump which is connected to an ECU. The engine is Euro 3-compliant and Euro 4 ready. The 150 hp engine offers more power which translates into faster turnaround time resulting in more trips. This will help operators make more money out of the vehicle, says a company executive.

Isuzu engines have been tried and tested in the Indian market. The Isuzu LT 134 inter-city luxury bus launched a couple of years ago has become a success in the Indian market. It is the second best-selling luxury bus, next to the Volvo. One of the key factors for the success of the vehicle is its reliable engine, which is a 230 hp Isuzu engine. Based on the success of Isuzu engines in the Indian market, SML Isuzu is confident that the trucks will also perform well in the Indian market.

Isuzu Motor Corporation of Japan has been taking measured steps into the Indian truck and bus market. First it entered the market with a luxury bus and has now launched its truck. Isuzu has acquired four per cent stake in Swaraj Mazda Ltd. Subsequently the company’s name has been changed to SML Isuzu Ltd.

What’s interesting is that the company has launched a 12-tonner, which is closer to the existing range of light and medium duty trucks that the company offers. It’s a more sensible move, instead of directly entering the 16-tonner heavy truck segment, which is a completely different segment with different customers and expectations.

SML Isuzu manufactures and sells light commercial vehicles for goods and passenger applications. Its products include ambulances, buses, dual cabs, and trucks. Currently majority of the stake is held by the Japanese giant Sumitomo Corporation (54.9 per cent). Isuzu own (four per cent) and P/E player Actis holds 5.6 per cent. Isuzu is seriously interested to increase its current stake and take control of the company. Isuzu is leading manufacturer of medium to heavy duty trucks, and Swaraj Mazda is a perfect fit for its Indian dreams.

Volvo Trucks keen on building closer relations with customers

It’s been 15 years since Volvo first entered the Indian market. The Indian entity, Volvo India Private Ltd., was established in 1996 and the first truck rolled out of the production facility at Hoskote, Bangalore, in June 1998. From trucks to tippers to buses, brand Volvo has established a very strong presence in the Indian commercial vehicle segment.

In the last decade, Volvo has led the transformation in the Indian commercial vehicle industry, be it cargo or passenger transportation. Volvo’s success in India made other European truck majors like Daimler, MAN and Scania take note of the Indian market potential. With competition hotting up, what is the strategy of Volvo, more particularly Volvo Trucks, to remain on top?
Mr. Somnath Bhattacharjee, President, Volvo Trucks India, spoke to Motorindia in detail about the journey so far and the strategy for the future.

The Journey so far

It’s been an interesting journey for the past 12 to 13 years. We have made significant progress in many areas by setting new standards in commercial vehicle operations. The concept of truck has gone far beyond a product. When Volvo trucks entered the Indian market there were no specifications in terms of higher performance demand in India. We had to identify select segments where we could carve out a niche for our high-performing trucks, which is today recognized as the European truck segment in India.

The market size for this segment is around 2,000 units per annum growing at the rate of 10 to 12 per cent year-on-year. We have sold 7,000 trucks so far in the last 12 to 13 years, 70 per cent of which are tippers and the balance tractor units. In 2010, we sold 1,100 trucks.

We currently offer FM 400 8X4 and FM 340 6X4 (which will be upgraded to FM 370 shortly) in the tipper segment. In the tractor segment we offer FM 400 6X4 and FH 520 6X4 model.

Our relationship with the customer is purely based on the concept of ‘total cost of ownership’. Our product is the best adapted to Indian conditions out of all the premium brands available in India today. We have a strong engineering team which is working in the local market, besides our manufacturing facility which is producing trucks for the local market.

Our trucks are adapted to the local conditions. This has made them highly reliable and high performing and also efficient in terms of fuel efficiency, turn-around time and high uptime. We have the best technology trucks and drivelines, but still adapting them to the local conditions is very crucial to get the right performance out of the truck.

Service and onsite support

On the service and onsite support front, we have been constantly raising the bar, both in terms of quality and quantity. We believe that wherever our customers go, we have to follow them. One of the key value propositions of a Volvo product is high reliability and uptime. In order to mitigate the high acquisition cost it is important that these trucks are utilized for the maximum number of working hours.

Our support structure is completely aligned to this philosophy. We have not only created world class workshops and repair facilities, but our site support mechanism is extremely unique where we have created world class infrastructure by setting up containerized workshops having a full-fledged facility with special tools to do component overhaul and truck repair.

We have more than 25 such on-site support facilities across India, and the number is steadily growing. Be it a project for construction of hydel power project, coal mines, lignite mine and special construction project, our philosophy is to get closer to the customer to provide all the part and service support, so that we can ensure uptime of our customer vehicles and keep the trucks in the best working condition to ensure they deliver the best in terms of fuel economy and component life.

Competence development

In the last 12-13 years we have grown both in terms of geographical locations and volumes. One of the key challenges was to maintain the competence balance in the system. We have in India the largest talent pool, but the equipments are very specialized, and hence to develop competence on our product and continuously refresh those is always a key priority.

Volvo has a global competition called Vista, which encourages competence development. We have a similar program in India which encourages competence development among technicians. We want to encourage the technicians to learn more, and eventually these learnings are translated and delivered to the customer’s trucks in terms of quality service and optimizing the repair cost. The whole objective is to create the learning culture, so that we are able to constantly upgrade our knowledge and competence which eventually results in better customer satisfaction.

Driver training

We are working on creating an environment for improved performance even within the customer’s organization. In fact, fuel in the Indian context remains the key contributor of cost, close to 45 to 50 per cent, depending on the application. Our truck specifications are best adapted to local conditions and hence the most fuel-efficient in its class, delivering at least four to five per cent better mileage than the nearest competition.

But that’s not enough; our global experience shows that driver development is crucial to deliver the best performance in fuel economy and optimizing the repair cost for trucks. Taking cue from Volvo’s global experience, we ran a fuel watch competition. In the first event, nearly 75 drivers were nominated from various customer organisations. Eventually the Asian finals happened at Gothenburg in March, and an Indian driver won the competition.

Why are we doing this? It’s a constant engagement with our customers and our own teams to sensitise on the key improvement parameters which eventually improves efficiency and the profitability for our customers. This competition has revealed that between the best and the weakest driver, under the same test conditions, the difference in fuel economy was as high as 70 per cent.

So far we have trained at our driver training centre in Bangalore more than 26,000 drivers. The program is not just on driving aspects but also on health, environment and, most importantly, on how to improve the overall performance level of trucks.To take it to the next level, we have recruited regional driver trainers to follow-it up. We are actively engaged with customers through these regional driver trainers who conduct on-the-job refresher training courses at the site. This helps in improving the overall performance, quality and efficiency of the drivers. Customers are looking for more participative relationship with suppliers like us, hence we bring the best practices and processes on table. Our current engagement with customers is at an extremely matured level. We are working with each other to drive progress in the industry in India.

Success in the tipper segment

We have sold over 7,000 trucks till date, 70 per cent of them are tippers and the remaining tractor units. The key reason why we have more tippers than tractor units is that in a controlled working environment our trucks can be utilised for much longer hours. When the acquisition cost is higher than the mass market products, we have to create an environment for the assets to be utilised the maximum number of hours. In the mining and construction industry we are able to achieve but not in the on-road trucks, as the average speeds are still not more 35 to 40 km per hour. Therefore, even if the trucks are capable for faster turn-around, because of the external environment, the utilisation comes down, which puts a hurdle on the profitability of our customers.

In the mining and construction industry, our trucks are able to average 20 to 22 hours of working everyday. We provide 24/7 service at our customer’s doorstep ensuring uptime of our customer vehicles.

Many of our customers own more than 100 of our tippers. This high rate of repeat orders, which is excess of 70 per cent, clearly proves that our engagement is continuously improving, and it’s a win-win situation for us and our customers who also see a lot of value associating with our brand and driving progress in their business.

In the segments that we are operating, the specification demands are very high. In the open cast mining, the depths are as high as 100 to 120 meters. Torque on wheels is a very critical factor, and our trucks are designed and adapted to negotiate through these mines. We offer a FM 400, 400 hp, 8X4 tipper tipper for deep mining applications. Product development for this segment needs huge resource and time, and therefore in these specialized segments, European trucks will have an edge because we have the right specs.

In a nutshell, there will be more and more high quality products which will be emerging in the next three-four years. We are likely see a large transformation in terms of truck specifications, higher horsepower, quality and performance levels. But when it comes to high performance segments like mining and construction, they still need very high specification trucks, and I do not foresee too many Indian products can actually compete with the European ones as they require very focused product development involving huge resource.

Since India doesn’t offer a large market for these products, standalone product development of trucks of this specification may not be commercially viable, and therefore European products adapted to Indian conditions would be a better strategy.
New applications

As the high performance culture is gaining momentum in organisations, we see large opportunities in specialized haulage segment, mineral transportation, etc. We are actively working on adapting our products to those segments which require high performance trucks but yet do not have the right offering today in the market.

Instead of operating too many smaller trucks, the operators are moving towards large capacity and more powerful multi-axle variants, which can do the work more efficiently. We are looking at large rigid trucks on 8X4 platform for high volume cargo. We also offer our rigid trucks for construction-specific applications like high capacity boom pumps, concrete mixers and fire and rescue trucks.

We are also looking at increasing our offering in the over dimensional cargo (ODC) segment in which we have leadership position. With large-scale infrastructure development, and especially power plants and large construction projects (As per the 12th Plan, India will add 10,000 to 12,000 megawatt of power every year). This will create huge demand for plant and machinery transportation, and there you need very specialized trucks with high capacity, high torque.

In the tractor segment, we offer FH400 HD, FM 400 standard tractor and FH 520. We also offer our tractor models for special Defence applications in the research and development organisations and also in the aviation refuelling segment, where safety is key requirement.

Increasing competition

Entry of competitive European brands is a welcome move as this will help expand the market. We are confident of maintaining and managing our competitive advantage. Our product development and engagement with the Indian customer and the value proposition we offer is much beyond the truck. We feel our engagement levels and overall contribution to the industry has matured and grown over the last 12 years, and we have very strong competence and talent.

The ability to adapt the product is our key competence and all manufacturers will have to go through the learning curve. The distribution and overall approach towards optimizing the total cost of ownership will be a differentiating factor. Making a good product is not enough, creating an environment and engagement to demonstrate to the customer that he can achieve the best will be the key success factor.

Our current engagement through all our initiatives, whether it is the area of competence development, driver development, creating world class infrastructure and facility together with a very strong talented, motivated and inspired team takes very long hours of learning and experience. That’s our key success factor and we will be able to maintain our competitive advantage.

With the emergence of new brands, I see more opportunities for everyone as the market is bound to expand.

Heil Trailer International’s 110th anniversary

The year 2011 marks the 110th anniversary for Heil Trailer International. To recognize this amazing milestone, Heil Trailer arranged company-wide celebration at its manufacturing facilities on June 14. It will also introduce a collection of marketing and promotional items supported by an advertising & media campaign focused on “Celebrating 110 Years of Growth.”

Heil Trailer International is a global manufacturer of specialty transport trailers. The product line includes liquid, dry bulk, oilfield, construction, platform, specialized, towing and defense trailers. Heil employs over 800 people worldwide, with its global support center located in Cleveland, Tennessee.

Heil has five manufacturing facilities at Athens, TN; Rhome, TX; Gatesville, TX; Argentina and Thailand.

Heil Trailer International is owned by Dover Corp. a multi-billion dollar, NYSE-traded corporation of more than 30 independent and diversified manufacturers of a variety of proprietary products and components for industrial and commercial use.

The early 1900s saw the beginnings of revolutionary change in the world: The Wright brothers’ flight at Kitty Hawk, Einstein’s theory of relativity and Marconi’s first transatlantic wireless message. This was also the time a man named Julius P. Heil embarked on a personal journey to transform the transportation industry with his innovative ideas.

In 1901 Julius Heil founded the Heil Railjoint Company in Milwaukee, Wisconsin, pioneering the use of electric welding. As the company grew and prospered, Heil began building truck bodies, hydraulic hoists and a variety of truck trailers for the new-born automotive industry.

In 1938, after Julius Heil was elected Governor of Wisconsin, his son Joseph F. Heil became CEO of the Heil Company and later became its Chairman.Joe Heil, Sr. served for 39 years until his son, Joseph F. Heil, Jr. took over. He served as the company’s leader until 1993 when Heil was purchased by the Dover Corporation. With the support of Dover, Heil’s employees continue to focus their efforts on developing innovative products and services, building relationships and providing the best “after-the-sale” service for the transportation industry, the same principles that Julius P. Heil embraced in 1901 when he founded the company.

Heil Trailer International continues to be a financially stable and enduring presence in the trailer industry, whose founding principles are very much evident in the work ethic of all Heil associates around the world.

Heil’s longevity is a result of its commitment to high quality, exceptional value and outstanding performance while maintaining the highest ethical and moral standards to remain the best specialized transportation solution provider in the world.

Tippers & Trailers retains leadership in car carrier segment

The Indian car market is expected to touch six million units by 2020 from the current level of 2.5 million units. Every car manufactured will need to be transported from the factory to the point of sale. Currently cars are transported by road through car carriers across India. On an average a car carrier can carry 8 to 10 small cars or 6 to 8 big cars/SUVs in one trip. At present there are 12,000-13,000 trailer car carriers and 3,000-4,000 rigid truck car carriers on road, and this volume is expected to double by 2020. The annual demand for car carriers is estimated at 2,500 to 3,000, which includes replacement of the existing fleets and additional fleets.

It is not just cars, very soon the Government will bring out a regulation stipulating truck and bus chassis to be transported through vehicle carrier and making it compulsory for all vehicles, including 3-wheelers, 4-wheeled mini trucks, truck and bus chassis, tractors and even construction equipments to be transported only on vehicle carriers. All this will result in increased demand for vehicle carriers.

In India, the car carrier industry is still highly unorganized. There are more than 100 units manufacturing anywhere from two to 50 units per month. Tippers and Trailers Private Ltd. of Bangalore is one of the few organized players and currently the market leader in building car carriers. Started by Mr. Ashok Hissaria in 1994 as Trakolly Engineering Private Ltd. in Bangalore, the company began building car carriers in 1999. The name of the company was subsequently changed to the present one.

With increase in demand for its car carriers, tippers & trailers moved into a larger facility in 2004-05. Today the company builds 70 to 75 car carrier units every month, catering to the requirements of all major fleet operators in the country. The company has built its facility on a 5-acre plot with 120,000 sq. ft. of covered space with a capacity to build 100 units per month, currently averaging 70 to 75 units.
To cater to demand in the northern region, tippers & trailers recently set up another plant at Gurgaon with a capacity to build 25 units per month. This facility is constructed on a 3-acre plot with 25,000 sq. ft. of built-up space. In 2010-11 the company sold 800 car carrier units garnering a marketshare of 35 per cent.

Mr. Ashok Hissaria says the company has a full-fledged engineering department with priority for weight reduction and maximum utilization of the space inside.

Tippers & Trailers has complete expertise in building the trailer, whether it is unloaded via a tipping platform or by means of a moving floor system, Through the utilization of CAD and solid edge engineering technology to simulate actual field conditions the company can isolate areas of the trailer design that demands the highest of structural integrity; top rail, gate, hinges and push bumpers and identify areas to address weight reduction. Thus, a very light tare weight, while still maintaining strength, is achieved through innovative design and use of materials, allowing for increased payloads, reduced maintenance costs and higher profitability.

Tippers & Trailers offers car carriers in two sizes – 18.75 metres and 22.5 metres. The smaller one can carry eight small cars or six big cars, and the bigger one can carry 10 small cars or eight big cars or SUVs. The company’s products have been approved by all major OEMs.

There is not much clarity though regarding the length of car carriers. Globally 18.75 metres is the standard length, but in India traditionally the length of car carriers is 22.5 metres to help carry more vehicles. This is partly due to very low freight rates. But this is bound to change in the future. Some of the car manufacturers have increased freight rates for transporting through car carrier which are within legally permissible length.
The market potential in India has also attracted global players like Lohr and Rolfo. But due to their high cost, they haven’t had much success.

Mr. Ashok Hissaria says: “We may not be good in aesthetics. But in terms of quality and performance, we are comparable to the best, if not better. Our products can last for 25 years if serviced and maintained properly”.

He also feels that there is need for specific truck chassis customized for car carriers. Currently, since the volumes are just 2,500 to 3,000 units per annum, manufacturers are not motivated to develop a product suited for the application. But once the regulation on moving prime movers through vehicle carriers is enforced, then it opens up a big market.

Tippers & Trailers has built over 4,000 car carriers till date and now wants to focus on service for which it is setting up a facility at Bidadi near the Toyota Kirloskar Motors factory on the outskirts of Bangalore. The Gurgaon facility will also double up as a service facility, and the company is looking at Pune and Chennai as well.

Having established a strong presence in the car carrier segment, Tippers & Trailers is now looking at getting into other products like flat-bed trailers, containers and tippers. The company clocked a turnover of Rs. 80 crores last year.

Timken launches new MileMate bearings for heavy trucks

Timken Company has announced the launch of MileMate matched wheel bearing sets for the heavy truck industry. MileMate sets are a Timken matched inner and outer wheel end application bearings in a convenient single box.

“We understand what the heavy truck industry demands from their bearings and provide quality products that help to keep fleets operating more cost efficiently and cost effectively”, said Ranjan Sen, General Manager - Mobile Industries, Timken India. “We recognize the need of commercial vehicle customers to conserve fuel, carry greater loads, standardize components and maximize uptime, and the Timken MileMate sets are perfectly matched sets for correct installation which optimizes bearing performance.Timken MileMate sets, the original matched wheel bearing sets, are designed to keep trucks up and moving. These sets are designed to meet or exceed the original equipment manufacturer’s specifications. The energy-efficient and cost-effective bearings are designed by Timken engineers working collaboratively with automotive and heavy truck original equipment manufacturers to lengthen maintenance intervals, optimize bearing performance, allow bearings to carry evenly distributed loads and provide longer life and reliability.

JK Tyre sales cross three-million mark

Further strengthening its leadership position in truck and bus radials (TBR), JK Tyre & Industries Ltd., part of the $2.5 billion JK Organisation, has reported that its sales of truck / bus radials (TBR) have crossed the three million mark in May 2011, beating all its competitors by a huge margin.

Commenting on the achievement, Dr. Raghupati Singhania, Vice Chairman & Managing Director, JK Tyre & Industries Ltd., said: “We would like to thank our valued customers for helping us achieve this feat. We were the pioneers of radials in the country. Over the years, we have consistently improved our product performance and pre- & after-sales service ensuring maximum customer satisfaction. We are the market leaders in truck / bus radials with a market share of more than 42 per cent. Our radials are fondly called by our customers as ‘the Baadshah of Radials’. Our greenfield facility in Chennai will also be rolling out truck / bus radials soon. This will be our second truck / bus radial manufacturing facility after Mysore. This is just the beginning of our journey as a top class radial manufacturer.”

According to him, JK Tyre initiatives like CRM, fleet management, tyre care & service centres, customer education through plant visits and fleet conferences have helped maintain the company market leadership.

JK Tyre continues to build its reputation as a forerunner in the field of technological innovation and breakthroughs. The expanded annual capacity of truck / bus radial tyres at 8 lakh tyres at the Mysore plant has further strengthened the company’s commanding position in this growing segment. This plant is now being further expanded to one million tyres per annum.

Recently, all the five plants of JK Tyre & Industries were recognized by the Japan Institute of Plant Maintenance for achieving the Total Productive Maintenance.

The company started manufacturing tyres in 1977, with a capacity of 5 lakh tyres per annum and has grown multifold over the years to its present capacity of 158 lakh tyres per annum, along with Tornel, a leading tyre manufacturer in Mexico. Currently the company has eight plants – five in India and three in Mexico through Tornel. The company’s five modern plants in India are at strategic locations in Rajasthan, Madhya Pradesh, and three plants in Karnataka and one greenfield project coming up in Tamil Nadu.
The Chennai plant is being set up in a record time of one year for which the ‘bhoomi puja’ took place on September 5, 2010. This state-of-the-art plant set up at an investment of around Rs. 1,500 crores, will manufacture high quality radial tyres for trucks, buses and cars for the domestic market. With this new plant, the company is aiming to expand its business in the southern region, particularly in Chennai popularly known as the Detroit of Asia.

Bridgestone India starts production of truck & bus radial tyres

Bridgestone India Private Ltd. (BSID), a subsidiary of the Bridgestone Corporation of Japan, has announced the start of production of truck and bus radial tyres at its Kheda plant in Dhar district of Madhya Pradesh. The inaugural function of the new facility was attended by the Additional Chief Secretary, MP Government, Mr. Satya Prakash, and other senior Government officials on June 14.

The facility, set up at an estimated investment of Rs. 170 crores, will achieve a capacity of around 200 tyres per day by December next. It will be raised to 400 tyres per day by July 2012.

Mr. Tanigawa, Managing Director of Bridgestone India, commented: “The starting of the truck and bus tyres production marks the beginning of the aggressive strategy of Bridgestone in the fast growing truck and bus radial tyres market in India”.Demand for truck and bus radial tyres is expected to grow in view of the expansion of the expressways and other infrastructural facilities on the back of the robust economic growth of India. Bridgestone currently imports truck and bus radial tyres from Japan.

Bridgestone India started its operations in India in 1998 and is currently producing 15,000 tyres per day for passenger cars and multi-utility vehicles at its existing facility at Pithampur with an estimated investment of about Rs. 820 crores employing around 1,500 people directly, apart from providing indirect employment to many others. The company is a leader in the passenger car tyres segment enjoying a premium position.

Tata Motors highly optimistic of growth in M&HCV segment

New customer-focused initiatives launchedTata Motors has had a very good year in 2010-11, particularly in the commercial vehicle segment. In the domestic market, the company’s commercial vehicles sales increased by 22.7 per cent year-on-year to 458,828 units, with its market share in it of 61.8 per cent.

Overall the CV industry grew by 27 per cent in 2010-11 over the previous year. The growth was supported by sustained economic growth leading to significant revival in exim trade, infrastructure development, pick-up in mining & construction activities, favorable vehicle financing, healthy freight availability, etc.Growth in the MHCV segment has been accompanied by a structural alignment and shift in favor of higher tonnage trucks. Tata Motors has witnessed growth of 31 per cent in the M&HCV segment, of which the tractor trailer segment grew by 59 per cent, multi-axle segment by 35 per cent, tippers by 24 per cent and the 2-axle trucks by around 11 per cent.

Tata Motors commands a 61 per cent marketshare in the overall commercial vehicle segment, but it is going to become increasingly difficult for the company to preserve the marketshare because of competition. From just three CV manufacturers a decade ago, today there are nearly a dozen manufacturers in India, and more are waiting in their wings to enter the fray.

As a market leader, the company is fully aware of this fact and is gearing up in all possible manner to tackle competition. Mr. Vinod Sahay, Head of Sales and Marketing (M&HCV), Tata Motors, spoke in detail on the product and customer support initiatives of the company that help it remain on top.

Starting with the products, Mr. Sahay said: “Earlier we had just one or two products at every GVW, like the 16, 25 or 40 tonne segment. Today we already have minimum two and in many cases more than four products at every GVW, price and performance point across all segments – rigids, tippers and TT. Going forward, we will have a basic product, a mid-range product and at the top end we will have Prima. For instance, in the 40-tonne TT, we have two offerings, one is a mass market product and the other high-end Prima”.
Multi-axle 8X2 segment

One of the biggest success stories for Tata Motors in recent years in the truck segment has been the 3118, 8X2 4 axle truck. Initially the haulage market moved from the 4X2 to the 6X2 multi-axle truck, and this has now moved to the 8X2 segment.

He said: “Within the multi-axle segment, we are seeing an increasing trend towards the 4-axle from the 3-axle truck. We expect the multi-axle truck markets to move to 8X2. Our 3118 8X2 model is the largest selling model in its segment. Till the first half of 2010-11, the 25-tonner multi-axle truck used to be the largest selling truck in the M&HCV segment. But from the second half of last year and in the current year, we see the 3118 doing very well”.

The 8X2 makes business sense for the operator as it offers better operating economics. You get 6 tonnes of additional payload. Tata Motors is offering its 8X2 truck with lift axle, which reduces the tyre life and fuel consumption during empty return trips, resulting in better operating economics.

Today the 8X2 truck has become a well-accepted model for all applications, including market loads, tankers, transportation of cement bags and others. The industry size for 8X2 trucks is around 4,500 vehicles, of which Tata Motors sells around 3,500 vehicles every month.

Mr. Sahay further observed: “In addition to the 3118 8X2 model, we will be launching a couple of more vehicles in the 8X2 platform with better power-to-weight ratio, better cabins, more powerful engines and higher gear options. We have introduced some variants within the existing model with different wheel base. We initially offered a 5200mm, then we introduced 5600mm last year, and this year we are introducing 6200 wheel base. We will launch an 8X2 truck in the Prima range in the current year”.Tippers

After seeing a fall in 2008-09 and 2009-10, the tipper segment has started picking up again with expanding activities in mining as well as construction. As per expert estimates, in 2010-11 around 43,000 tippers were sold in the domestic market.

Till a few years ago Tata Motors offered just a single model in multi-axle tipper segment, the 2516 tipper with 14 cum capacity. Today it offers a complete range of tippers, starting from the 2518, 14 cum which is its base product. And then it offers a 2518 HD which comes with a bogie suspension instead of normal suspension. The 3rd on the same platform is a 2518 HD with 9-speed gear box for deep mining application. Then it has a 2523 which comes with a 230 hp engine. The company has recently launched a 2528 tipper, with 280 hp from the Prima range.

The tipper segment witnessed moderate growth in 2009-10 and 2010-11. Due to the recession during the previous year, customers had postponed their buying for a later date. Tippers normally have a shorter life of three-four years during which it is fully utilised.

According to Mr. Sahay, “tipper replacement demand didn’t happen during 2010-11, and hence we expect the growth rate in the tipper segment to be much higher than the cargo segment this year, and we also expect the current year to be good for the tipper segment”.

Tractor trailer segment

Tata Motors witnessed the highest growth of nearly 59 per cent in the tractor trailer (TT) segment. The growth could be better but for the shortage in supply of components. The TT segment is now considered the sunshine industry and is expected to do well in the coming years.

The year 2008-09 was really tough and the TT segment was the worst affected by the recession. But with the revival in economy, markets in Rajasthan, Gujarat and Maharastra, which are the strong TT markets, expanded fast. Towards the second half of last year, 2010-11, port applications, particularly container movement, started picking up. This is normally the last segment to come out of the recession as it is primarily dependant on exports.

Mr. Sahay said: “Tata Motors has 66 per cent marketshare in the TT segment selling nearly 19,000 out of a marketsize of 29,000 units. In the conventional range, we offer 35, 40 and 49-tonner tractors and in the Prima range we offer 40 and 49-tonne for high-speed cargo movement and for ODC transportation”.

Prima

Referring to Prima, he remarked: “With Prima we are trying to transform the Indian transport industry. Very clearly in the long term, Prima is what will run on Indian roads. We are happy with the way we have progressed with Prima. We have launched two models so far and hope to add another 7 to 8 more models during the current year”.

Tata Motors has so far launched TT models in the 40 and 49 tonnes as part of the Prima range. The company recently launched 2528 and 3128 tippers on the Prima platform. With new products and variants in the Prima platform, numbers are also expected to increase.

The company recently bagged a contract to supply 56 Prima trucks to Toll India, a wholly-owned subsidiary of Toll Holdings Ltd., Australia. It will supply the trucks by September this year. The company has also won an order for supplying around 250 Prima trucks to Linfox Logistics.

In India, according to Mr. Sahay, the tonnage transformation has happened in the last 20 years, from 16 to 49 tonnes. The only way to increase further efficiency in transportation is by increasing the distance covered. Today a Prima does 800 to 900 km a day compared to a conventional truck which does around 300 to 400 km a day. It is offering a minimum of 35-40 per cent increased productivity to every customer.Customer focus

Moving away from products, Mr. Sahay also spoke on the various customer-focused initiatives taken by the company in recent times. “Going forward, we believe it will be difficult to sustain our market share purely by focusing on products. Increasingly, in any developed economy, product differentiation between manufacturers will be very minimal. The key differentiating factor will be our after-sales support in terms of service, availability of spares and customer focused initiatives”.

Tata Motors also recently launched Tata Delight, a customer loyalty programme for owners of its commercial vehicles. At the launch of Tata Delight, Mr. Ravi Pisharody, President - Commercial Vehicle Business Unit, Tata Motors, said: “We thank our esteemed customers for their long-standing support to the Tata brand. To create an even deeper customer connect, and take our relationship with customers to the next level, we have launched the Tata Delight programme. We believe this initiative will further strengthen our bond with customers.”

Tata Delight is a loyalty programme for all Tata Motors commercial vehicle customers, both existing and new. It offers customers a host of distinctive facilities across all Tata Motors dealerships, sales outlets, and Tata Motors authorised service stations.

Customers can earn bonus points on purchase of a new commercial vehicle. They can also earn or redeem points on vehicle servicing or repairs, new spares, across all Tata Motors dealerships, sales outlets, and service stations. Members can call on a 24X7 toll free helpline 1800 209 7979 for queries and on-road and highway assistance service.

Other membership privileges include educational scholarships for children, a chance to win a Tata Nano every quarter through a lucky draw and invitations to special events and movies with family. A customer can avail of all these benefits for only Rs. 100 (without insurance) and Rs. 500 (including insurance).

If enrolled for the programme with insurance, a vehicle driver will receive a 3-year insurance policy which offers an accidental insurance of Rs. 1 lakh, personal disability insurance of Rs. 1 lakh and an accidental hospitalisation cover of Rs. 25,000 per year.

Once enrolled in the programme, the member will receive a Tata Delight Owners Card and as many Tata Delight Chassis Cards as the number of vehicles a customer owns and wants to enroll for. While the Tata Delight Owners Card can be used to earn and redeem points, Tata Delight Chassis Card will only accumulate points earned against spends on the vehicle registered in the programme.

Key account portal

Tata Motors has also introduced a key account portal for all its key customers. Customers who have access to this site can have complete data of the fleet online. The operator can access the site anytime to know complete operational details of the truck – the distance covered, servicing details, etc. It can also help customer search for spares and also the nearest Tata outlet where it can be purchased. It also has a dealer and workshop locator.

Mr. Sahay also said: “We started this initiative during the last financial year and the effective deployment has happened during the current year. The experience has been very good, customers are demanding more features out of this. An important requirement for the customer, which we are now working on, is the ability to settle the bills online. For instance a Delhi customer has his vehicle undergoing repair in Chennai, he can get make the payment through an online payment gateway”.

Tata Motors is clearly the undisputed leader in the Indian commercial vehicle industry. It is leaving no stone unturned to sustain its market leadership. Be it products or customer focused initiatives, the company is doing everything possible to remain on top.

Scania's aggressive entry into Indian CV segment

Plant coming up near BangaloreIn 2011, Scania completes 100 years of its existence, and the company has taken the important decision to enlarge its presence in the Indian commercial vehicle market.

Scania is one of the world’s leading manufacturers of heavy trucks, buses, and industrial and marine engines. In 2010, it clocked a turnover of 8,700 million euro by selling 56,837 trucks, 6,876 buses and 6,526 engines. Operating in more than 100 countries, Europe is the company’s main market, accounting for 39 per cent of its sales. Latin America accounts for 32 per cent, Asia 19 per cent, Africa and Oceania five per cent each and Euroasia four per cent.

Scania entered India in 2007 in partnership with Larsen & Toubro (L&T) for selling its high-end tippers in the Indian mining market. The company currently offers Scania P380, a 380hp tipper truck for mining applications. Till date the company has sold over 600 tipper trucks in India. Currently these trucks are imported as fully-built units with the tipper bodies being sourced locally. After a careful study of the Indian market and the potential it offers for high-performance trucks and buses, Scania has taken the next big step of setting up an Indian entity and also an assembly facility for trucks and buses.Mr. Henrik Fagrenius, Managing Director, Scania Commercial Vehicles India Private Ltd., said: “We’ve had a partnership with L&T since 2007-08 and they’ve shown us that there are segments in the Indian market where our products and business models are suitable. Therefore we have decided to enter new segments. We will enter the on-road heavy haulage truck segment, the premium Intercity luxury bus and coach segment, the city bus segment and industrial and marine engines. We will establish a Regional Product Center in and around Bangalore”.

Scania India Commercial Vehicles Private Ltd. is a 100 per cent subsidiary company of Scania global. The company was established in February 2011. The exact capital outlay is now known. The new facility is expected to come up on the outskirts of Bangalore. “We hope to have this up and running by next year. We are aiming to do this as quick as possible”.
Says Mr. Martin Lundstedt, Executive Vice President in charge of Scania’s sales and marketing: “There is a demand for vehicles and engines of the quality and performance that Scania stands for. Within the next five years, we expect to be able to achieve annual sales of almost 2,000 trucks, 1,000 buses and 1,500 engines”.

Sustained economic growth, growing exports, and the expansion of highways and logistic systems are factors behind Scania’s decision to strengthen its presence in the Indian market. “In the longer term, India will be a key market for Scania. We are now taking a new important step into the market, and look forward to growing and developing the business together with our partner L&T,” concludes Mr. Lundstedt.

Mr. Fagrenius observes: “L&T will continue to play an important role in relation to Scania’s sales and service in the Indian construction equipment market. Our own presence in the country will also strengthen L&T’s position, since the company’s Scania customers will benefit from a larger range of models, shorter delivery times and higher service availability.”

L&T has so far been importing the tipper trucks from Scania as CBUs. With the setting up of the new assembly facility and the Indian entity, Scania will import the trucks and buses as CKDs and assemble it at the Indian facility. This will significantly reduce the lead time for the customer, says Mr. Fagrenius.

During the second half of 2011, Scania will provide a small number of buses and trucks for test operations to select Indian customers in the on-road truck and bus segment. “The potential exists to broaden our existing offer of trucks to the mining industry but also within other areas in the construction segment, as well as trucks for heavy special-purpose road transport. Within the bus segment we see a potential for sales of buses and coaches both for city traffic and long-haul intercity traffic,” he adds.

Scania heavy duty mining tippers were introduced in the Indian market in 2007 together with L&T. The Indian company has successfully established Scania’s heavy construction trucks in the mining industry, and currently operates about 10 Scania service workshops in various mining sites in the country.

Scania has established similar product centers in Taiwan, Malaysia, Dubai, South Africa, South Korea and Russia, and now in order to show its long-term commitment to the Indian market it is establishing one in India as well. The company is also planning to set up an R&D centre in India.

Apart from offering the P380 6X4 tipper, Scania is planning to enter the on-road, heavy haulage truck segment, for Over Dimensional Cargo (ODC) transportation. The company is planning to offer a 6X4 Tractor with a power rating of 380 upto 500 hp for ODC transportation. We will put a few test units on road during the current year.

Even in markets like Europe, Scania has positioned its products in the top-end of the market. India will be no different. “Scania trucks and buses ensure high uptime, low fuel consumption and low cost of ownership. We are trying to find segments where our business model is valid and understood by customers”.

Scania will be offering the same global products, trucks and buses in the Indian market. It doesn’t have plans of developing any India’s specific truck or bus to cater to the local market. It might make some adaptations to the existing product to suit local conditions. It is not ruling out the possibility of exporting trucks and buses assembled out of India.In the bus segment, Scania is planning to put some test units on road during the latter part of the current financial year. “It will initially focus on the inter-city luxury buses and later the city buses. The chassis will be CKD, and we are doing a final investigation on how to do the body”. The company is exploring the possibility of either building its own bodies or doing it through an established Indian bus body builder, as per Scania’s quality standards.

In the top-end luxury inter-city bus segment, the market has migrated towards multi-axle buses. Scania might introduce a 6X2 multi-axle bus instead of a 4X2 single-axle bus.

Engines

Scania is a major supplier of engines for industrial and marine applications. The company sold 6,526 units last year. It will offer these engines in the Indian market too. Globally Scania supplies engines to construction equipment manufacturers like Terex and Doosan. The company will explore the possibility of supplying engines to these manufacturers in India and also the genset market.For trucks and buses, Scania manufactures nearly 21 critical parts in-house at its plant in Sweden. Core components like axles, gearbox and engines will all be manufactured by Scania and imported from its global facilities.

“We will have 10-15 per cent local content when we start assembly in India. We are already buying Indian tyres and our tipper bodies are made in India”. Mr. Henrik said: “We are focused on the driver. A good driver can help upto 10 to 15% improvement in fuel consumption, which helps in better cost of operations. We do quite an extensive driver training program along with L&T. We are working with drivers at the customer place and at the working sites, in the mines”.

What differentiates Scania from others in India has been its after-sales service support. “Together with L&T we have set new standards in service. We have erected mobile workshops at customer sights to be able to assure the customers that the uptime is the best. We are currently a team of 10 and it will be 20 by the year end. Once the facility is up and running, we will have at least a 100 people on board. In the initial stages we will have the Scania global team to put the manufacturing procedures and systems in place”, he added.