Frugal Tech

Article by: Anirudh Raheja
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Q & A

Vinod Aggarwal,

 

Chief Executive Officer,
VE Commercial Vehicles Ltd.

Interview by : Anirudh Raheja

Q. M&HCV sales have been growing. LCVs continues to drag. What do you foresee?

A. It is true that the overall heavy-duty segment (16-tonne and above) is doing well. If you drill down further to haulage, and construction and mining trucks, the haulage segment has gone back to almost 90 per cent of its earlier peak in 2011. It is expected to be close to 150,000 to 160,000 units in 2015 as against 175,000 units in 2011. This has primarily been led by replacement demand, and may touch the peak in 2016. Construction and mining trucks are still in recession. They accounted for 60,000 to 65,000 units in the 2001 peak times, and are likely to be down to around 35,000 to 40,000 numbers on an annual basis in 2015. Even though, there is good growth in high end coal mining tippers, demand for iron ore mines as well as construction tippers continue to be in the recession mode due to stagnation in infrastructure investments.

In light and medium duty trucks (5 to 15-tonne), the recession continues; even though the decline has stopped. If you look at 2011, this segment peaked at around 100,000 units per annum. It dropped to 65,000 units in 2014. The last year average of 5,000 units per month is still continuing in the current year, and has not witnessed further downfall. In August 2015, there was a growth of around 20 per cent in light and medium-duty trucks. Going forward we have to see when it will start to recover; will hit peak volumes once again. One of the reasons for recession in this segment is sentiments in the rural areas. They are not yet upbeat due to monsoon worries. The other reason is the funding problems small operators (who use light- and medium-duty trucks) are still facing. There is always a lag in the recovery between heavy-duty and light- and medium-duty trucks. The lag has been longer this time as against the normal lag of six to nine months.

 

Q. Has the dilution of stake by Volvo brought any change in the JV?

A. As far as the JV is concerned, there is no change whatsoever. The shareholding pattern as well as the corporate governance structure continues to be same as before. The dilution has happened in the Volvo Group’s holding in Eicher Motors, which was a financial investment. Volvo Group continues to hold 45.6 per cent share in the joint venture. The commitment of both the shareholders to the JV continues to be extremely strong and their actions speak for themselves. Volvo Group has set up an Euro VI medium-duty engine truck plant, VEPT, at Pithampur, to meet medium-duty engine requirements. They have also extended technologies that are required for the development of the Pro series of products. Both the partners have extended tremendous support that is required to meet the vision of driving modernisation in the commercial transportation in India as well the developing world.

 

Q. A significant milestone, the modern engine plant at Pithampur, what could come next?

A. We have industrialised Volvo’s 5-litre and 8-litre medium-duty engines in India by setting up a state of the art plant at Pithampur. The base engines are Euro VI emission compliant, and have been adapted to meet Euro III and Euro IV emission norms. They are also powering the Pro 6000 and Pro 8000 series in BS III and BS IV emission guise. At the VEPT plant, we are currently manufacturing 1,500-2,000 engines per month. The number will rise as sales of Eicher heavy-duty trucks rise, and as demand from Volvo Group grows. The installed capacity of the new plant is currently 50,000 engines per annum. It can be hiked to 100,000 units per annum.

 

Q. What about the market growth of VECV buses? Do you foresee a distinct shift with the implementation of bus code?

A. Last year our market share in the bus market was 15 per cent. In 2008, it was close to 6 per cent. We are steadily growing in the bus market, year-on-year. We are having a strong position in school and staff bus segments, and we are planning to become a strong player in other segments like route permit or inter-city coaches. Also, in State Transport Undertaking (STU) bus segments. As far as the new regulations under Bus Code are concerned, all the buses that are manufactured by us or by our body builders comply with it. One of the big challenges will be enforcement of these regulations in India that all regulatory agencies need to ensure.

 

Q. What is the current status of JNNURM II? What about AMRUT?

A. The execution of the schemes has been very slow. Tenders have been issued and bids have been accepted, yet STUs are finding it hard to get the right contractors to run these latest technology buses. There are also funding constraints with STUs due to which implementation of the schemes has been slow.  

 

Q. Are all the Pro series models out? How are they helping VE to carve out a place at the heavy-duty end?

A. We will continue to add more and more models as we go along. We have released nearly 90 per cent of the models in the light and medium duty CVs that operate under Pro 1000 and Pro 3000 series. In the heavy-duty segment, the launches have been slow.We have launched a few models under  Pro 6000 and Pro 8000 series. We are also in the process of releasing more models for heavy-duty segment in 2016. These new technology trucks offer significant advantages in fuel efficiency as well as turnaround time and will lead to higher life time profitability for the transporters. We consider it to be the future of Indian trucking industry. We are now making all the trucks ready for  BS IV emission norms that are becoming applicable in some parts of the country from October, 01, 2015, and in whole country from April, 01, 2017.

 

Q. There are talks of skipping BS V emission norms and moving to BS VI?

A. Both technically and commercially, it is not advisable to skip BS V. There are major changes required in engines as well as fuel like sulphur content in the emissions, major reduction is required in NOx and particulates. Apart from these, a very advanced electronics and controls are required that need not only huge investments but also the long lead time. Fuel companies also need to make major investments for reducing sulphur content in fuel. If the industry has to move to Euro VI from Euro IV in a short time, that will need huge investments and incremental cost of engine will also increase substantially. Therefore it is advisable to do the same in a proper sequence. Moving upto Euro V, and then to Euro VI.

 

Q. How far has the development on RESLF bus progressed?

A. Since the option is available to continue using the front engine buses, the concept of rear engine buses has not taken off well in the mass market products. Thus at the moment we are not pursuing RESLF buses.

 

Q. GST has been stalled? There is a talk of a new transport ministry with a dedicated secretary. How do you look at these developments?

A. The industry is looking forward to GST implementation for quite some time now as this will not rationalise the cascading taxes but also bring in efficiencies in distribution. Even though the government is very positive and committed, they are not able to move fast because of various reasons. Earlier we were thinking that GST will happen from April 01, 2016, but looks difficult now.

Setting up a new transport ministry with a dedicated secretary level person will bring in more focus on this important area and this it is a step in the right direction.

 

Q. What is your opinion on the FAME program?

A. It is an ambitious project, but electric mobility in India is still a few years away. With electric mobility, the costs will go up significantly. It will still take some time before it takes off in India.

 

Q. Eicher is known for frugal engineering, and Volvo is known for technology. What does it signify to the competition in terms of growth and new products?

A. We have adopted Volvo Group world-class technology using our frugal methods. We have been able to develop our entire new line of Pro series products from 5-tonne to 49-tonne at the right costs. We have optimised the investments and achieved much more with less investments. We now have an entire line of new products with latest technology adopted from the Volvo Group; a state of the art engine plant that produces Euro VI compliant engines for the need of the Volvo Group. We have a new state of the art bus body building plant; two new gear manufacturing plants, and a totally revamped and modernised truck plant with CED paint shop, and new assembly lines and a
body-in-white shop. We have a state of the art parts distribution centre and five company owned and operated dealerships. All these have been done at a cost of Rs. 2200 crore. We have achieved much more with less.

 

Q. Give us an update on Eicher Sure program?

A. Through this program we are trying to create an organised market place for used trucks. Since a truck comes back into the market in five years, remarketing it assumes a lot of importance. Keeping that in mind, we have taken this initiative to facilitate better realisation of the value of used trucks by getting the trucks refurbished. Eicher Sure team also helps in finding the right buyer. Earlier, the brokers used to pick up these trucks at throw away price and sell it at an exorbitant price, thus making a lot of money in the process. Eicher Sure team tries to connect the genuine buyers with sellers and that results in better value for used trucks.

 

Empowering Transporters

Article by: Rajesh Rajgor

Interview by : Rajesh Rajgor

Q & A , Nalin Mehta, MD and CEO, Mahindra Truck and Bus Limited.

Empowering Transporters

Q. Away from building and selling commercial vehicles, what have the seven MPOWER programmes and two Mentor summits delivered?

A. There was an impression that the young generation is not excited about venturing into the transport industry. The amount of hard work and dedication shown by young transporters at the MPOWER Programme, which we conduct with IIM (Ahmedabad), tells a different story. How excited they were was more than visible when we challenged them with the MPOWER War Room. They were told to implement what they learned during the course. Close to 26 case studies were short-listed in the first MPOWER War Room. It did not take long to realise that the young transporters are eager to venture into the transportation industry, They want to however break away from the trodden path; drive in more professionalism. The Mentor programme thus was the outcome of the learnings from the MPOWER youth programme. The veterans felt that their prodigies carried a false impression of having learnt it all. While they understood that one of the gains that will surface from the Mentors’ Summit will be networking but the extent of that networking surprised us. They (veteran and his prodigy) may not be competing in every area, and through these programmes they have learnt how to collaborate. This is something that we think has been delivered.

Q. How has such an endeavour reflected on the sale of your commercial vehicles?

A. We are new in a marketplace that contains brands that have been there for 30-40 years. The whole business is about relationship and trust. It is necessary to understand that every activity should not be linked and converted into sales. If you see these things and then judge whether we have gained or not; the gains are bigger than what you see on the ground. The gain is not just in terms of people, we have touched; we have created a relationship. Many transporters for instance won’t even give us a hearing. They are big in their own ways and have large fleets. The relationship that has been developed assures that we are heard. It also helps towards building mutual trust. This reduces the resistance, and increases their propensity to look at our brand. Our trucks and buses are a little ahead of its time. By creating a mindset for the future, we are creating a place for ourselves. So to measure the success of our programme in terms of sales is not right. When it comes to the market share, we have a very good amount of it. There are only two OEMs who have grown in market share. Last month (June 2015) we recorded a 3.3 per cent market share in HCV and about 9 per cent market share in LCV segment. We sold about 1100 LCVs and HCVs.

 

Q. How would the announcement to invest Rs. 500 crore relate to performance in terms of sales?

A. One part of the investment will be towards the expansion of our current product range and to enter into Intermediate Commercial Vehicles (ICVs). Second part will go into a new range of LCVs, and in the design of new cabin and a new chassis. Third part will go into the upgrading of the current product range. A BS IV vehicle has to be engineered; new variants of the existing products are to be brought out. There’s also a 49-tonne (tractor-trailer) that will come. We are also doing a 8×4 tipper. We are also doing a rig version for the tube well drilling industry. As you may have found out, we are continuously investing money. It will take us three years to bring the ICV. So I see MTBL (Mahindra Truck and Bus Ltd.) to be a significant player in the next three years.

 

Q. Are you still using Navistar engines for your trucks?

A. Yes, the engine is from Navistar. As you are aware, we had a joint venture with Navistar. We have a perpetual technology agreement and we pay royalty to them. Any further developments we do in the engine is our own, and they can take it from us at a price. The engine is very fuel efficient. Even more fuel efficient versions will keep coming as fuel efficiency is a never ending game. Right now our engines are as good or even better than the class leading products. Everyone claims that their engines are class leading. We are saying it on the basis of the share we are gaining. It is a proof that we are moving in the right direction. Our cabin is the best in the industry. Our chassis and aggregates are the strongest. Many of our trucks have gone past three lakh kilometres and the robustness is still the same. We have got feedback that even after using for four years the cabin is as intact as it was when new. The common-rail engine we have, we will offer in our 40 and 25-tonne vehicle. The wet liner technology does not mean the complete engine has to be pulled down to overhaul. We have individual heads for every cylinder. Every bit need not be taken apart. Apart from a modern engine, our cabins are also modern. They have been crash tested, and as of today there is no need to add more safety elements to it. The cabins are already 10 years ahead of their time. We have followed norms that are still not mandatory in our country. It can therefore travel to any developed country right now.

 

Q. Does the engine perform in terms of regulations?
A. The engine is already BS III emission compliant. It will take minor (after treatment) work to upgrade it to BS IV.

 

Q. How do you look at driver shortage. Are you planning any empowering programme for them?

A. The transport excellence awards that we present include an award for drivers. We gave one driver a truck and made him the owner. We gave one truck to the first women driver, Yogita Raghuwanshi. Each year we award drivers. There references are provided by fleet operators. This is our way of encouraging drivers; by motivating them to become a truck owner. The first driver whom we gave this award has already bought another truck. We are also conducting Mahindra Saarthi Abhiyan where we give scholarships to the daughters of truck drivers who strived to educate their daughters beyond tenth standard. We see it as recognising the efforts of the driver. The girl can opt for any course she may like. We give Rs.10,000 as scholarship. We would have dispersed one-crore rupees last year. Even this year we will conduct the Mahindra Saarthi Abhiyan.

 

Q. How big is the MTBL dealership network?

A. In the last three years we have set up close to 63 facilities. In addition, we have close to 53 authorised service stations, which also act as expert local workshops. We have trained 1400 local mechanics, which are connected through our call center. They also act as our road side assistance (RSA) points. So if a truck has met with an accident, the operator calls our call center. The call center in turn calls the nearest RSA point. It reaches the location of breakdown and conducts the repairs. Our call center is multi-lingual, and manned by engineers. The prime service center at Pune is where the call center is. The call center thus doubles up as a service center. So, when the driver calls, it is easier to figure out if a ASC (Authorised Service center) or a RSA should be pressed into
the job.

Staying ahead

Article by: Staying ahead

Q & A : Ravi Pisharody, Executive Director — Commercial Vehicles, Tata Motors

Interview by : Bhushan Mhapralkar

Q. What growth will the CV industry achieve?

A. We are seeing more of what we saw last year. M&HCV sales continue to grow at 20-25 per cent, driven by cargo. Cargo M&HCVs are growing at 30 per cent on replacement demand. Tipper and construction truck part, which accounts for 30 per cent, is flat. Not like 2010-11, which saw the last big purchase. Replacement demand is connected with resale value. Demand is also coming from clients that are asking operators to buy new trucks, which are efficient and have a faster turnaround time. On October 01, 2015, some regions will move to BS IV emission norms. ABS and speed limiter will be implemented from October 01 as well. Some pre-buying to offset three to four per cent price hike is expected. We however want IIP (Industrial GDP) and mining recovery to come in. Also, agriculture. The base effect is kicking in. Buses (4 to 11-tonne) performed better in the first quarter. Small pick-ups have seen no major impact. It is essential to look at each segment. M&HCVs are growing at 20 to 25 per cent and Small Commercial Vehicles (SCVs) are declining. Companies with a complete range hold the chance of looking adverse in the short-term.

 

Q. What impact would regulations have on growth?

A. Regulations are a part, and also the return of some of the growth drivers like the move up to higher tonnage vehicles, tractor-trailers, etc. Today, tractor trailers are the fastest growing; two-axle trucks are the least growing. Customers want to invest in new segments. The 49-tonne segment for example. Introduced six years ago, this segment almost vanished during recession. It is coming back. Also, the move to higher hp. We led the movement from 150 hp to 180 hp in 2010-11. We are seeing a move up to 230 hp trucks from 200 hp. Even multi-axle designs due to more open competition. All the big names are here. It is obvious that people would like to differentiate. A movement towards higher spec products is on therefore. Regulations like ABS and speed limiters will help.

 

Q. What about alternate fuel technologies?

A. Government is trying to get some sort of electric play, and we want to be at the fore-front of it. In the area of hybrid buses mainly. The biggest area for electric play is the city hybrid bus. We are piloting a vehicle for almost four years now. We are trying to talk to the government and frame the FAME programme; to make it commercially viable. A BMTC order is part of that programme. We qualified for a hybrid tender BMTC floated. The price of the product is making it a bit of an issue. A strong push is necessary for alternative fuel technology or hybrid. We were expecting a larger outlay by the government in the budget. We expect it to come.

 

Q. So, buses are seeing a technological leap?

A. We are working towards executing an order for articulated buses for Hubli-Dharwad by December. There was no articulated bus purchase for many years. Higher unit price is difficult to afford. Technology is slowly moving up. For JNNURM recognition, many bus body builders are becoming bigger, professional and more efficient. With Bus body code fully implemented on August 01, 2015, ‘Mickey Mouse’ body builders will find it hard to derive a cost advantage. This is good for companies like Tata Motors and Ashok Leyland. Buses are highly regulated, and have a socialist agenda associated. They need the right permit; need to be allotted a route. Also, seen is if the state transport undertaking will be affected. Issues like these may not make hybrid buses viable. State transport undertakings cannot increase prices, and for a better experience, the need will be to recover costs by charging higher.

 

Q. What about the luxury bus segment?

A. For upmarket body builders it is like a boutique work. The super luxury high deck coaches are worth Rs.70 to Rs.80 lakh. The body price is five times the price of the chassis. Conversely, in a typical school bus, the price of the body and the price of the chassis are the same. Thus, a bus body is not small, and the reason why we invested in a company. With regulations, the body is becoming more expensive. Unlike China where the bus market is 50 per cent of the truck market, in India it is 15 to 20 per cent of the truck market. It will remain limited.

Q. How will competition impact?

A. As far as competition is concerned, we are of the opinion that everybody has to be in India. There is no excuse for any company to be not there in Brazil, India, Russia, and China. In Brazil and India especially. BharatBenz has laid out everything they promised in the 9-tonne to 49-tonne range. They will get a chance. Especially in those markets that regard foreign as hi-tech. Making a transition from three players to eight players, the market will see some market share correction in the short term. Many may appear in the long term. There would be no permanent repercussions with new entrants like Suzuki launching an SCV. Measured in primary sales, market share will see some inflow. The need however is to look at it 18 to 24 months down the line, and if it is sustaining. For us, the challenge is quite enormous. We are not undermining it. We have to protect from an Ace Zip to a Prima truck, or a DTC bus. Different competitors are focussing on different areas. With 60-70 per cent market share, we will have to anticipate and identify gaps. Some even though we do not find it interesting.

 

Q. Is government participation absolutely necessary for FAME?

A. Without government support it is not viable to participate. Not unless there’s certain volume. The battery and some of the key items cannot be localised. Dialogue is on, and while it may have been a little late for the JNNURM tender, there is a tender MMRDA has floated for 25 hybrid buses. MMRDA will run a hybrid bus service from Bandra-Kurla Complex. Despite a policy in principal, it is becoming a bit staggering to support 40-50 per cent subsidy. It amounts to Rs.40 or Rs.50 lakhs for a low-floor hybrid bus. If one were to sell 100 buses, so much money is involved. It is here that the authorities are struggling to try and give a mass face to the programme. Buses are going to benefit mass users but the number of vehicles they can showcase is only this much.

 

Q. How do you look at competitors who lashed on to certain segments?

A. A competitor exploited tipper segments in 2008, 2009, 2010 and 2011. Today, the numbers that we see are very low. MAN, Navistar did not get the sort of trial a BharatBenz or a Volvo got. From their numbers, available in the public domain, it is clear that they are not getting the benefit of the 20-30 per cent upturn. The need is to look at staying power; those who have back-end technology. If you don’t have back-end technology, you have tie-ups taking place. There are some who have preferred to go on their own. We will have to wait and see. Some are seen crossing 500 units a month, which is less than two or three per cent market share. It is therefore easy to understand why BharatBenz came to be the third largest player very quickly in the M&HCV segment. The only other player is Eicher. It is in the 9- to 16-tonne range. The moment BharatBenz went up to 800-900 units, they announced that they have become the third largest player.

 

Q. What do you hope to achieve by expanding the dealer network?

A. Before Ace came, there was no touch and feel factor associated. We expanded from 300-400 touch points to 1000 touch points with the Ace and Magic. Existing dealers invested; new dealers were appointed; at locations (inside cities and towns) were the Ace could ply but not a big truck. The current wave began two years ago with the need to compete with new players. Ensure showroom experience. New technology like BS III and BS IV calls for a laptop to repair vehicles. A strong transformation to fully built vehicles is on. In buses it has reached 70 to 80 per cent. One may not want to experiment with more expensive products like the Ultra and Prima. Some of the sales outlets (1S) have expanded to include three to four service bays for SCVs. Coming to include programmes like 24×7 assistance, apart from expanding current locations and establishing new locations we are focussing on proper connectivity of service centres. We expect our network to reach 4000 touch points by the end of FY17 from the existing 3000 touch points.

 

Q. With many dealers stressed, how do you look at their ability to modernise?

A. Over 60 to 70 per cent of the revenues come from trucks, and the recovery is helping. CV numbers may not be picking up yet, the revenues are higher than that of the previous year. This is good for vendors, and for the channel partners. Return on investment is measured in revenues rather than the number of vehicles sold. Sale of eight to 10 Ace Zips can be made up by the sale of one big truck. Similarly, sale of five to six Ace or Magic can be made up by the sale of one truck. This will also explain why the M&HCV recovery is so critical. Keen to maintain the dealership structure or culture, we would not like a dealership to fail. In case of a CV dealership, due diligence can be exasperating. It can take one-and-a-half year to issue a letter of intent. It will take another one year for the dealership structure to be established. If is therefore, that we are talking about a lead time of up to FY17.

 

Q. How popular are fully-built trucks?

A. Multi-axle tipper sales account for 100 per cent fully-built units. Tractor-trailers already come with a cabin. The issue is with multi-axle trucks. Insistence on cowls is there. In the 16-tonne to 25-tonne multi-axle truck category, the market remains value conscious. Customers in this category prefer a wooden cabin as costs are low. In case of an accident, the cost of a wooden cabin is not as high as a fully-built vehicle cabin. We have embarked on an education programme, but the per centage of fully-built vehicles in the the category is still at less than 10 per cent.

 

Q. What about exports?

A. We have been exporting for 20 years. It is however not enough to balance against a domestic down cycle. Availability of Prima, Ultra, and SuperAce with a 1.4-litre common-rail diesel engine will help us to reduce our dependence on SAARC markets like Bangladesh, Nepal and Sri Lanka. These markets don’t have a local brand. There are export markets that we are in, which include European brands. Our products compare well on appearance and specs, and offer a 10 per cent price advantage. We are getting repeat orders from the Middle East, South Africa and other markets. Planning to go up from 45,000 units last year to 1,50,000 units in a three-to-four year time frame, our first quarter results show that we have grown by 35 per cent on export numbers. We have launched pick-ups in a number of Asian markets like Philippines, Indonesia, Malaysia, Vietnam and Australia. We are already present in Africa. In Thailand we are diversifying our range beyond Xenon, to trucks. We will soon begin export of SuperAce Mint. We will also launch a refreshed Xenon with extended space cab. Half the Thailand market is about space cab pick-ups. In Tunisia we started an assembly operation. We also have a manufacturing JV in South Africa. We entered the Saudi Arabia market in 2013. In the manner in which Suzuki had to develop a diesel engine for India, we had to develop a petrol engine for the export (left hand drive) variant of the Ace.

 

Q. What about regulations and technology when it comes to exports?

A. Unless we have a critical mass in a Euro 6 product, we may not look at Europe. It is an extremely expensive proposition. A declining market with solid home grown players can be an expensive affair. The products that we are going with are not leaps and bounds ahead in terms of technology. Though more developed than us, many markets are yet to reach the BS IV levels. In many markets we have had to go back to BS II specs to export some of our products. We will therefore go with our products where there is a scale for our technology. We are investing in Australia. It is one of our lead markets from the technology stand point. We are looking at automatic transmission on a pick-up with Australia as a lead. We are also working on Euro 5 and Euro 6 because it will come to India in 2019 and 2022. Our presence in some of the export markets is giving us a head-start to go into some of the technologies rather than wait and scramble at the last minute. It is an enormous task across cars and commercial vehicles.

 

Q. What are your capex plans?

A. We have been anticipating competition, exports, and in a sense that the capex, which is somewhere between 1500 and 2000 numbers, will continue. There is hardly any product in which we are investing only for exports. We are planning an AMT in an ICV category vehicle. The two big cabin-platform investments – Prima and Ultra – are behind us. Not expecting dramatic rise in sales, platform renovation will continue. We invested in capacity in the past. When the M&HCV capacity was running short at Lucknow. As a result we got good growth in 2010-11 and 2011-12. If we had not expanded at Lucknow, or if Tata Cummins would not have setup a facility at Phaltan, we would have fallen short. We have also invested at Dharwad for SCVs. We are facing issues of under utilisation for past three-four years, but the capex is focussed on product design and development; very little on facilities for the next five to six years.

 

Q. Is the market discount oriented yet?

A. The market is still heavily discount oriented. We have capped our discounts. We don’t want to be a discount leader despite having in excess of 70 per cent market share. We feel it is a better long-term measure at the cost of some short-term loss till the market gets better. We are seeing a strong recovery in South. The fall in that market was also the largest. This is over a four year cycle. We are not missing any particular segment, product-to-product. The Prima 4018 and 3118 continue to lead their respective segments.

 

Q. You have bagged defence orders?

A. Defence is a business waiting to happen. Even before this government came in, over the last three-four years, there has been sufficient talk about buying from the Indian private sector. Before the ‘Made in India’ thing came about. We have been asked to put our vehicle on trial. It is a big ticket – in the 6×6 and 8×8 segment. These vehicles have not been bought from India. Replacement demand for such defence vehicles is thus coming up. While we want to export more defence vehicles, ‘Make in India’ is really applicable in defence vehicles. The 6×6 quotation was received in 2011-12. As trials go on for longer periods, we have received an order now.