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.