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.

M&M's Maxximo Mini Van

A new generation passenger carrierMahindra & Mahindra Ltd. has announced the launch of the Maxximo Mini Van, its next generation passenger carrier. Developed on the technologically superior Maxximo platform, the Mini Van is set to redefine the entry-level contract carriage and stage carriage segments in India. Equipped with best-in-class comfort and safety features and powered by the advanced C2 CRDe fuel-efficient diesel engine, this stylish people mover is competitively priced at Rs. 3.2 lakhs (ex-showroom BS3, Navi Mumbai).

Leading the pack with its wide-body with proper hardtop design, the spacious Maxximo Mini Van comes with an ergonomically designed and well-cushioned seats that up the comfort factor. This, along with the Maxximo Independent front suspension system, raises the bar of riding in comfort. With its robust monocoque chassis, constructed with bigger box-sections for greater rigidity, and booster-assisted twin LSPV brakes, the Mini Van is also one of the safest products in its category.

Performance meets economy with Mahindra’s proven C2 CRDe diesel technology which pumps out 25 hp power and still gives 18 km to the litre. All of this is packaged in what is clearly the most stylish offering in this segment.
Speaking at the launch of the Maxximo Mini Van, Dr. Pawan Goenka, President, Automotive & Farm Equipment Sectors, Mahindra & Mahindra Ltd., observed: “A product from Mahindra’s state-of-the-art Chakan plant, the Maxximo Mini Van is the perfect embodiment of Mahindra’s philosophy of ‘Rise’. It will drive positive change in the lives of our customers by helping them prosper with the power of advanced C2 CRDe technology and car-like comfort and safety, all in a stylishly designed package. At Mahindra, our endeavour has always been to offer best-in-class products, and the Maxximo Mini Van is no exception.”

Said Mr. Rajesh Jejurikar, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd.: “Last year, the market size of the minivan segment in India was over 1.4 lakh vehicles which are increasingly emerging as the choice of both the entry-level contract carriage and the stage carriage segment. We expect the Maxximo Mini Van to be nothing less than a game-changer in the market. It will also change the face of the entry-level contract carriage segment, as the ideal vehicle for tour & travel operators, schools and other institutions.”
Car-like comfort & space

The Maxximo Mini Van comes with a wide-body design to comfortably seat eight adults. Ergonomically designed and well-cushioned seats reduce the fatigue of long journeys, while the well-thought-out butterfly windows provide good ventilation. Maxximo’s Independent Front Suspension system absorbs the shock and bumps of the roughest terrain, and the cable operated gear-shift gives a smooth car-like feel while changing gears. In addition to a spacious passenger cell, the Mini Van offers ample luggage space as well.

Stylish look

The Maxximo Mini Van boasts of a stylish van design and a proper hard-top body. The attractive front grille and futuristic, clear-lens wraparound headlights give it a distinguished on-road presence. The vehicle is available in two attractive colour options – Diamond White and Appy Red.

The Mini Van provides 360 degree-safety with a monocoque body, a proper roof and a fixed-glass rear door. Unlike other offerings in the segment, the Mini Van’s monocoque body is made of bigger box sections. This provides greater roll-over strength and resistance to roof-crush. Furthermore, the doors are constructed with intrusion beams to protect occupants in the event of a side-impact. Twin load sensing proportioning valve (LSPV) brakes, not seen on competing offerings, provide effective and precise control while braking, and booster-assist reduces the effort required by the driver while braking.
The Mini Van comes with the proven C2 CRDe diesel technology that powers the Maxximo today. Along with superior pulling power of 25 hp and a top speed of more than 70 kmph, it offers best-in-class fuel economy of 18 kmpl, implying an ideal balance of power and economy for the customer.

Strong and sturdy Tata Magic IRIS and Ace Zip launched

Tata Motors has just launched the Tata Magic IRIS, a four-wheel, 3-4 seater small passenger carrier. It is a stylish, safe and comfortable alternative for commuters who depend on three-wheelers. The company has also come out with its Tata Ace Zip, a technologically superior and smart micro truck with a payload of 600 kg for deep-penetration door-to-door goods movement. Both the vehicles offer superior profitability to their owners.

Commenting on the launches, Mr. P.M. Telang, Managing Director - India Operations, Tata Motors, said: “Tata Motors has been a pioneer in creating and growing the small commercial vehicles market in India with the Tata Ace and the Tata Magic. With the introduction of the Tata Magic IRIS and the Tata Ace Zip the company will more comprehensively address the burgeoning need of public transportation and goods movement. Their quality, affordable pricing and competitive maintenance cost throughout the life-cycle will further foster self-employment in the country.”

The 4-wheel fully-covered, stylish Tata Magic IRIS has an all steel body with hard top and double steel sheet doors thus, making it a safe vehicle, offering complete protection from heat, dust and rain. With wide doors for easy entry and exit, comfortable seating, more headroom & legroom and seatbelts, the vehicle ensures passengers have a safe and comfortable ride. The car like independent McPherson strut suspension ensures a smooth and bump-free ride. It comes with flexible seating options suited to meet different needs across states.

Equipped with a powerful 611 cc, water-cooled engine with 11 hp power and 31 nm torque, the Tata Magic IRIS delivers better power, pick-up and gradeability which results in faster and more trips over long travel distances. With 12” radial tyres, the Tata Magic IRIS offers great mileage and superior performance. The strong and reliable aggregates come with an assurance of lower maintenance costs and longer life. The Magic IRIS is thus a best-in-class vehicle superior in all aspects.The driver experience is enhanced by class defining features such as stylish instrument panel, ergonomically designed sliding bucket seat, big windshield, side mirrors, glass windows, stylish dashboard mounted gear shifter.

The vehicle which comes with a warranty of one year or 36,000 km, whichever is earlier, is all set to be a head turner on Indian roads as it comes with four colour options – Arctic White, Ruby Red, School Yellow and Jet Black. It is priced at Rs. 1.95 lakh, ex-showroom Thane (without octroi).

A reliable, safe and efficient sub-600 kg micro truck with class leading features, the Tata Ace Zip has the agility to navigate narrow by-lanes with its small turning radius of just 3.5 metres, making it apt for both urban and rural use.

With a single cylinder water-cooled engine, delivering an output of 11 hp and torque of 31 nm the vehicle is set to change the way cargo is moved in the sub-600 kg category. It is the only vehicle in the sub-600 kg category to be powered by a water-cooled engine, enabling a comfortable travel over long lead distances. Its 12” radial tyres and large load body make it suitable for varied applications.

The Tata Ace Zip comes with a sleek steering wheel, comfortable seats and a roomy cabin, ensuring that the driver has a fatigue-free experience, resulting in higher productivity and a significantly superior earning opportunity for the operator. The ergonomically positioned dash board mounted gear shift lever enhances comfort in ride and handling while enhancing the roominess of the walkthrough cabin.

The vehicle model comes loaded with safety features like retractable seat belts and a sturdy all steel cabin, which ensures complete safety for its occupants. The micro-truck is versatile and adapts seamlessly to different terrains and road conditions.

With a warranty of 36,000 km / 12 months, whichever is earlier, the Tata Ace Zip, BSIII version, is priced at Rs. 1.90 lakh, ex-showroom Thane.

AL bags Bangla order for 290 double-deckers

Ashok Leyland has bagged an order for 290 fully-built double-decker buses from the Bangladesh Road Transport Corporation (BRTC). Worth around $23.3 million, this represents the company’s largest single order for double-decker buses from that country.

An agreement to this effect was recently signed by the BRTC Chairman, and Mr. Antony Lobo, Special Director - International Operations, Ashok Leyland, at Dhaka.

Commenting on the order, Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, said: “Bangladesh has always remained a very important market for us. Our continued focus on this robustly growing market has helped us establish ourselves today as the second largest brand in that country’s commercial vehicle market. We will continue to maintain this focus in the coming years”.In 2010-2011, the company’s export numbers zoomed by 72 per cent to touch 10,306 units in which Bangladesh had a significant contribution. Over the years, more than 9,500 vehicles of different models have been exported through Ashok Leyland’s sole dealer of over two decades, Ifad Autos Ltd.

Shriram Automall is the right platform for buying, selling used vehicles

With the evolution of the automobile industry, many new concepts have come to be accepted and have proved successful at the global level. One such popular concept that has revolutionised the industry is the auctioning of used vehicles and equipment.

Every year, over a million commercial vehicles (small, medium and heavy), 200,000 agricultural equipment and an equal number of construction equipment are getting added to the vehicle parc in India. These equipment are bound to age over a period of time and change hands from the first to the second and the third owner during their lifetime.

Industry experts estimate the annual value of used vehicle and equipment business (commercial vehicles, agri and construction equipment) at Rs. 75,000 crores, which is probably the size of the new vehicle business in the country today.

Despite such a huge opportunity, there is no organized platform available for buying and selling of used vehicles and equipment in the country. Identifying an opportunity and leveraging on its experience of operating in this segment for decades, the Shriram Group has launched the concept of Shriram Automall, an ideal platform for buying and selling of used and unused trucks, agricultural equipment and construction equipment.
Mr. Sameer Malhotra, CEO of Shriram Automall, says: “We sell a wide range of used and unused equipment for the construction, transportation, agricultural and other industries at our auctions. Anyone can sell items or equipment at Shriram Automall. We don’t restrict our auctions to select groups or people with a certain type of equipment. Our customers range from small independent operators to large fleet operators. Most of them are end-users, but we also sell surplus equipment for dealers and manufacturers”.

Shriram Automall recently inaugurated its first outlet on the outskirts of Chennai. It has conducted three auctions already since its launch and sold several vehicles and equipment. The Automall is a one-stop shop for buyers and sellers of second-hand/pre-owned commercial trucks, tractors, tippers and the like to meet and conclude their deal through a transparent process.

“Whether you have one item or an entire fleet to sell, Shriram Automall will take care of all the customer’s needs. We take care of every detail of the buying and selling process, including marketing, getting potential buyers and sellers, documentation, facilitating inspections, coordinating any desired refurbishing, conducting a professional sale, financing, collecting and disbursing the proceeds of sale”.

Considering the potential across India Shriram has set an ambitious plan to set up 50 such facilities strategically located on important highways across India covering a pan-India population of commercial vehicle and equipment users. The next centre is coming up at Baroda in Gujarat.

The Automall will also house Shriram One Stop, a computerized touch screen kiosk which will be a virtual Truck Bazaar, providing real time information about used commercial vehicles available for sale across India and simultaneously facilitates registration of individual buyer’s requirements. One Stop will bring more transparency while buying and selling used commercial vehicles.

The One Stop kiosks have been installed at nearly 500 locations across India and more than 4,000 transactions have taken place in March. The Automall will include Shriram New Look, wherein refurbished pre-owned commercial vehicles are put on display for buying with in-built financing options.
Shriram Automall is the perfect extension of business for Shriram Transport Finance whose core business has been financing used trucks and equipment. In the last 30 years, it has helped replace nearly 20 lakh trucks by providing affordable acquisition credit to small truck operators.

Shriram Automall is clearly set to revolutionise the commercial vehicle and the agri, construction equipment business. It provides a readymade platform for buying and selling of used vehicles, which will help fleet operators in replenishing their fleets. Typically if you look at the lifetime of a truck, say, 15 to 20 years, the vehicle changes hands every 5 to 6 years. So from a new vehicle buyer to the second or third owner, there is a buyer or seller available at every price point.

The Indian market has close to five million trucks on the roads today. Of this close to 1.5-2 million trucks are traded in the used market every year.

Shriram Automall will help in providing an organized, transparent platform for buying and selling of used vehicles and equipment.

Shriram Automall in Vadodara

Shriram Transport Finance Company Ltd. has just launched Shriram Automall in Vadodara. Mr. J.P. Gupta, Transport Commissioner of Gujarat, inaugurated the automall on April 30.

The facility, spread across 1,30,000 sq. feet, is the first-of-its kind initiative that will give access to the country’s large community of truck owners to trade their vehicles in a hassle-free manner. At the automall, apart from trading of commercial vehicles, the truck owner / contractor will also be able to explore financing and insurance options, as also minor and major repair facilities. Rest rooms for travel-fatigued truck drivers and cleaners are also provided as an add-on facility.

The overall plan is to have 50 such facilities strategically located on important highways of the country.

“Creating value for our truck owner community with utmost transparency is our aim. We strive to provide the best services to our customers and one-stop solution to all of them”, said Mr. U.G. Revankar, Deputy Managing Director of Shriram Transport Finance Company, on the occasion.

The automall will also house Shriram One Stop, a computerized touch screen kiosk which will be a virtual truck bazaar, providing real time information about used commercial vehicles available for sale and simultaneously facilitates registration of individual buyer’s requirements. One Stop will bring more transparency while buying and selling used commercial vehicles.

The automall will include Shriram New Look, wherein refurbished pre-owned commercial vehicles are put on display for buying with in-built financing options.

Volvo India ties up with Srei BNP Paribas to launch financial services

Volvo India Pvt. Ltd. and Srei BNP Paribas have announced the formation of an alliance to launch a private label retail financing program branded as Volvo Financial Services in India with immediate effect. This will strengthen the Volvo Group’s ability to provide full service financial solutions to Volvo Group customers in India and customers of its JV with the Eicher Group, VE Commercial Vehicles Ltd. (VECV).

With the launch of the financial services offering, the Volvo Group will accelerate its business growth in India across all of its products by packaging its product offerings with financing through its alliance with Srei BNP Paribas. By engaging the two companies at the sales, marketing and operations levels, the alliance will allow both companies to address new growth opportunities by developing co-branded financing programs and services for customers of both groups.

Volvo Financial Services in India is aimed at building a reputation for attractive customer financing services to the external and internal customers of the Volvo Group and VECV. Volvo Group’s brands include Volvo Trucks, Volvo Construction Equipment and Volvo Buses, and VECV’s brands include Eicher trucks and Eicher buses.

Srei BNP Paribas is India’s largest construction equipment finance company, and with this alliance, Volvo Financial Services will leverage its expertise of over 22 years, coupled with a network of 87 offices across India, strong underwriting capabilities and an asset base of over INR 12,000 crores to increase its penetration and give complete financing solutions to customers buying Volvo products in India.

John Rakocy, President of Volvo Financial Services for Region Asia/Pacific, commented: “After a comprehensive review process, we are excited to alliance with Srei BNP Paribas for Volvo Financial Services in India. The Volvo Group and its distributors will benefit from leveraging Srei’s expertise and financial capabilities in credit underwriting, funding, and sales and marketing effectiveness through a private label program under the Volvo Financial Services name. We look forward to continued growth within this key Asian market”.

Mr. D.K. Vyas, CEO, Srei BNP Paribas, said: “We have a partnership approach in all our businesses, and we are happy to join hands with Volvo Financial Services, in their endeavor to provide financing solutions to Volvo Group customers. We have been financing Volvo Group products since their entry into the country, but through this formal association, we will complement each other’s strength and further cement our relationship”.

York sets up state-of-the-art facility for trailer axles & systems

York, a subsidiary of TRF Ltd. of the Tata Group, is a global manufacturer of axles and systems for the trailer industry. York Transport Equipment India Pvt. Ltd., the Indian entity, has established a state-of-the-art manufacturing facility at Talegaon, Pune, at an investment of Rs. 20 crores with a capacity to produce 100,000 axles. This is the second manufacturing facility of York in India. The first one at Jamshedpur has a capacity to manufacture 15,000 axles per annum. The Pune plant is the single largest manufacturing unit for trailer axles in India. All this shows the extent of commitment of the York Group to the fast growing Indian truck and trailer market.

York manufactures at the global level trailer axles and assemble trailer suspension kits and distributes a full range of truck / trailer components. York’s entry into the Asia-Pacific region can be traced back to 1985 when York Australia was set up in Melbourne to gain a foothold in the Australian market for truck and trailer components.

York Singapore, known as York Transport Equipment (Asia) Pte. Ltd., was subsequently formed in 1989 as a base to expand into the fast growing Asia-Pacific region.

York is now a subsidiary of TRF Ltd., selling its axles in India for many years now till 2007 when TRF acquired 51 per cent stake in York Transport Equipment (Asia) Pte Ltd.

The new plant was inaugurated by Mr. Sudhir Deoras, Chairman of the York Group of companies. This is the sixth global facility of York, the other five are located in Singapore, China and Australia.The new factory is spread over 120,000 sq. ft. with a covered space of 70,000 sq. ft. It has two assembly lines of axles, apart from the area earmarked for assembly of special products like air suspension and bogie suspension.

Mr. Sudhir Deoras said: “This Rs. 20-crore investment that York is planning to make in India indicates its commitment to establish in India and contribute to the Indian trailer industry”.

The trailer industry in India is in for an exponential growth. In 2010-11, nearly 25,000 tractor units were sold in India. On a very conservative estimate, the marketsize for trailer axles in India will be around 75,000 units, and this is expected to double by 2015. York currently has a 22 per cent marketshare in the trailer axle business, and its target is to raise it to 30 per cent during the current year.
Mr. Chatterjee, COO, York India, is confident that this facility would cater to the entire Indian requirements by the end of Q3 of FY 2011-12 and then start supplying to the neighbouring markets like SAARC, the Middle East and Africa. York is gearing up with the required fixtures to make axles & suspension at the Pune plant, which hitherto were being imported into India in assembled condition.

The new plant manufactures complete axles, including pressing, welding, washing, assembly and painting. Most of the axle components are being sourced locally after the conformance to the York’s global quality standards. The emphasis is on quality, reliability and longlife of the axles.

York axles are using high quality grease on the bearings which can last upto 100,000 km without any need for change. Similarly, the welding quality is the best. The axles are practically maintenance free, added Mr. Chatterjee.
York is planning to make India a hub for all its future expansion, and significant investments are being planned in manufacturing and R&D, considering its growing potential.

Mr. P.V. Balasubramanain, CEO, York Group, indicated that York would develop a full-fledged R&D centre at this facility to support the HQ in Singapore. To start with, a suspension test rig will be installed at the Pune plant. York’s Jamshedpur axle manufacturing unit along with Pune Warehouse and Sales Office in Mumbai have recently been awarded ISO/TS 16949 certificate by BVQI, Mumbai.

Apart from trailer axles, York globally offers complete solutions for the trailer industry, including mechanical suspensions, air suspensions, landing gears, fifth wheel couplers and trailer ABS. All these products are now available for customers in India.

York products are now the preferred choice of most vehicle and trailer manufacturers in India. They are standard fitment on the trailers of Tata’s Prima trucks.

York is also shifting its current warehouse in Pune from Chakan to Talegaon. This is the third warehouse of York in India, apart from that in Jamshedpur and Chennai. A training facility is also being developed at the Chennai warehouse, besides the one at Chakan.

Wheels India partners Reyco Granning for truck & trailer air suspension systems

Accelerated economic growth and the fast developments on the road infrastructure front have made it necessary for end-users of trucks and trailers to look for better technology and products, in line with the trend in developed countries. Indian fleet operators are increasingly looking at newer and advanced technology solutions in truck & trailer for efficient and safe delivery of goods in the most economical way.

It is to cater to the requirement of fleet operators in providing safe and reliable transportation solutions that Wheels India Ltd. of the $6 billion TVS Group has joined hands with the US-based Reyco Granning for manufacturing air suspension systems for all applications, including for trucks and trailers.The partnership aims to bring together Wheels India’s understanding of Indian truck and trailer market, its product development capabilities and its strong after-sales network across India with Reyco Granning’s technology and its expertise of more than 75 years in developing suspension solutions for trucks and trailers.

At the global level, Reyco Granning offers a wide range of products for the truck and trailer segment. Wheels India plans to initially introduce in India air suspension systems for trucks, tractors, trailers and allied suspension systems, including lift axle system.

Mr. P. Sundararaman, Head - Air Suspension, Wheels India Ltd., said: “We are field-testing the air suspension systems on our customers’ trucks and trailers on their regular operating routes to evaluate the performance in actual Indian operating condition. Our products have clocked more than 70,000 km on road. The product performance and the customer response have been very positive. Encouraged by the response, we are now talking to all our other truck customers, particularly in segments like parcel carriers, white goods carriers, car carriers, oil tankers and special goods carrier.Wheels India has been a pioneer in the Indian market for air suspension systems for over 25 years, particularly for the bus segment. The company offers a range of products for the bus segment and has developed design capabilities, a robust supply chain and manufacturing facilities. “We design, develop, manufacture and assemble suspension systems for different models of buses, getting involved from the concept stage of the vehicle program with OEMs, thereby reducing the lead time for product launch”, added Mr. Sundararaman.

Wheels India’s air suspension systems are fitted on more than 25,000 buses running on Indian roads. The company has developed products for buses under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM) program and was the leading supplier of air suspension systems to most of the OEMs.

Wheels India is a leading manufacturer of automotive and off-road steel wheels in India. It reported a turnover of $380 million for 2010-11. Nearly 15 per cent of its turnover comes from exports to OEMs like Caterpillar, Komatsu, GM, Ford, Hyundai, John Deere, etc.
The company has full-fledged facilities from design to manufacture all types of steel wheels and forged aluminum wheels for trucks. Certified to ISO/TS 16949 and ISO 14001, it has received the Ford Global Excellence Award and the Toyota Best Supplier Award.With seven manufacturing plants in different parts of the country, the company’s engineering department is a recognized R&D center under the Ministry of Science & Technology and has developed IPR in its field. It has an extensive network of 25 authorized service centers and 240 spare parts outlets across the country.

Apollo CV Zone, India’s first full-service outlet for CVs opened

India’s first full-service commercial vehicle tyre outlet was recently inaugurated at Sanjay Gandhi Transportnager on the outskirts of Delhi by Onkar S. Kanwar, Chairman, Apollo Tyres Ltd.

While Apollo and other tyre makers have similar service outlets for passenger vehicles, commercial vehicles have not received adequate attention in terms of state-of-the-art service centres, trained personnel and a pleasing service environment.Said Onkar S. Kanwar on the occasion: “All our customers are equally important for us. Our thought was, if passenger car drivers deserve a service mentality and modern retail facilities in our Apollo Zones, so do commercial drivers – in reality they are the people on whom the economy rides! We are looking to build a network of Apollo Commercial Vehicle Zones across the country over the year, placing each one of them at key locations in transport hubs and on highways to create greatest convenience for our commercial segment operators.”

Apollo CV Zones, equipped with tyre sales, wheel alignment, balancing and nitrogen gas filling facilities, would also offer other services, specifically for the radial tyre user like the services of the techno-commercial Apollo team called Forza and the Apollo Radial Service Assistance programme. Both of them are geared to enable operators to run and service their vehicles in a manner which enables them to extract the best cost per km.

This Apollo CV Zone is spread over 5,000 sq. feet. Apart from selling the range of Apollo’s commercial vehicle tyres it also has two service bays and six trained service personnel and will cater to an estimated 2,000 trucks that are parked every day at the Sanjay Gandhi Transportnagar. The facility also has a 10-seater training centre that will be used for both driver and service, fitment and usage trainings.
The Sanjay Gandhi transport hub is home to Apollo’s first Health Care Centre, established in 2000 for targeted intervention in HIV-AIDS, sexually infectious diseases and for general health of the commercial vehicle community. It is staffed with two medical practitioners and four outreach workers and averages over 250 patients every month. Apollo Tyres has 17 such health centres across India.

Challenge Bibendum - Michelin’s commitment to sustained road safety

The 11th edition of Michelin Challenge Bibendum held in Berlin from May 18 to 22 concluded on an encouraging note. Promoting the overall theme of cleaner, safer, more connected mobility, the event was yet another example of Michelin Group’s commitment to sustainable and safer road mobility.

The purpose of the Michelin Challenge Bibendum 2011 was to bring together a broad array of stakeholders – from car lovers to decision makers – while also involving the general public, with the goal of making the sustainable mobility of the future more widely accessible.

Flagged off by Michel Rollier, Managing General Partner, Michelin Group, the five-day event was dedicated to the recently signed Global Road Safety Commitment by Michelin to support the Decade of Action for Road Safety, 2011-2020, which is actively promoted by the United Nations.Speaking on the occasion, Michel Rollier, Managing Partner of the Michelin Group, observed: “The spirit that guides the Michelin Challenge Bibendum is to show that the automobile’s capacity for improvement is alive and well and that road transport has a bright future serving the society’s needs. We can and must reduce the gap between the scope of the challenges we face – which include energy, environmental and safety issues, as well as universal access to efficient mobility solutions – and the slow pace of decision-making processes around the world. Innovation and its organized deployment require close co-ordination between the public and private sectors. Let’s look to the future without fear, keeping a totally open mind with regard to all both local and global solutions. What’s truly important is not to put off making the tough choices required for everyone’s well-being. We’re counting on the experts’ discussions and the events in Berlin to help us take an additional step toward ensuring sustainable road mobility that is cleaner, safer and connected.”

Michelin Challenge Bibendum is the global summit for sustainable mobility. It’s the world’s only event that brings together car and truck makers, academics, equipment manufacturers, energy suppliers, research institutes, public authorities and non-governmental organizations to forge a shared vision of tomorrow’s safer, cleaner transportation.
Mr. Prashant Prabhu, President, Michelin Group AIM (Asia, India and the Middle East region), said: “Highlighting the theme of Safer, Cleaner, and Connected, the 11th edition of Challenge Bibendum has been able to bring together like-minded individuals who are concerned about sustainable mobility. Michelin Challenge Bibendum is charting the way towards mobility that is more fuel-efficient, cleaner, and safer”.

He also said: “In a country like India, which is growing rapidly, the issues of climate change, energy security, local pollution, road safety and urban congestion are critical considerations for sustainable growth. By tapping global experiences and best practices, India has an opportunity to progress more rapidly by leapfrogging technologies, allowing the country to design and adopt a mobility plan best suited to its needs. To drive a radical shift to new technologies and new ways of looking at mobility, a real spirit of change is required. It is often best exemplified in emerging economies and India is no exception to the same.”

Commenting on Michelin’s plan for growth in India, Mr. Prabhu said: “Michelin is committed to strengthening its presence in India as it augments Michelin’s capability to cater to the huge customer base in the country with its world-class, best engineered quality products.”

Held at a single venue, Berlin’s former Tempelhof airport saw participation from 6,000 representatives from the worlds of politics, industry, science and the media to discuss sustainable road mobility challenges and solutions. The event also hosted 1,000 students, with a day of programs purpose-designed for them.

For the first time – on May 21 and 22 – the Michelin Challenge Bibendum was open to the general public. And because road mobility has to be experienced to be understood, a range of practical, real-world activities were organised for the two days. These included a circuit for testing electric sports cars, an itinerary that recreates city driving conditions for assessing the performance of small city cars, tests of vehicles with the engineers who developed them, and a 300-km eco-driving challenge that enables individuals to test their environmentally friendly driving skills at the wheel of an Audi A8 or a Citroën DS3.

Working with other industry players to design the vehicles of tomorrow, Michelin rules out no areas of research and pursues all opportunities for innovation so that the materials challenge can be approached from all angles. During the event, some of the technology and new innovations showcased were:
The motorized wheel for city buses, the ElLisup project: Michelin considers that city buses represent a natural opportunity for the deployment of technologies like the motorized wheel. In line with this objective, Michelin has developed the ElLisup project, which is managed by Irisbus/Iveco and financed by ADEME. The project purpose is to develop a hybrid bus and an electric bus, both of which can be charged quickly. More broadly, the goal is to promote electrification of the bus sector and demonstrate that this type of public transport is economically viable.

The Michelin Fuel Cell: The biggest challenge facing electric vehicles today is to deliver maximum range between two stops at the charging station. Meeting this challenge will play a determining role in the large-scale deployment of EVs. From this perspective, the fuel cell can make a key contribution. For the same weight as that of a battery, a fuel cell and its hydrogen fuel can propel an EV two to four times further. To develop this technology, Michelin is supporting the F-City H2 project, which uses a battery/fuel cell combination as an energy extender.

Active wheel: Michelin Active Wheel houses two engines. One is used to provide traction for the vehicle, delivering 30 kW of output power for a weight of only 7 kg and stores the kinetic energy generated by braking. The second engine ensures the suspension function: its actuators only need 3/1,000ths of a second to adapt the position of the wheel and the chassis.

Of course, the impact of producing electrical energy has to be included when assessing the overall impact of the wheel and this varies greatly depending on the production system employed. In a very environmentally friendly package, Active Wheel is the optimal integration of four functions: engine, suspension, braking and tires.

Applying the new technology to hybrids with Velroue: These bi-modal vehicles represent a plausible alternative solution that combines the emissions-free, noise-free advantages of an electric powertrain with the extended range of an internal combustion engine. Renault and Michelin launched the Velroue project in partnership with public authorities and the French Institute of Petroleum/New Energies (IFPEN). Motorized wheels provide a host of benefits. Not only do they reduce the amount of electrical energy needed, and thus the size and cost of the battery, they also reduce the impact of the additional electric powertrain on the load volume.

To encourage young talent and to showcase technological innovations at the student level at Challenge Bibendum, Michelin also played host to an eight-member team from RV College of Engineering, Bengaluru, who showcased a hybrid REVA at the rally during the event.

Michelin Challenge Bibendum also acted as a platform to encourage India into the space of technological advances. For the first time Challenge Bibendum saw participation from five leading engineering universities of India – BITS Pilani, NIT Trichy, Anna University, VIT Vellore and Delhi Technological University.

Michelin also hosted a two-member team of professor and student from each college to allow them to witness Challenge Bibendum and to interact with various stakeholders from the industry and in the process come face to face with challenges and opportunities in the area of sustainable mobility.