VECV: Meeting BSIV with EGR and SCR

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Meeting BSIV emission norms with EGR and SCR technology, VE Commercial Vehicles has launched the Pro 5000 Series.

Story by:

Bhushan Mhapralkar

Eicher Trucks & Buses, a part of VE Commercial Vehicles Limited, has employed Exhaust Gas Recirculation (EGR) and Selective Catalytic Reduction (SCR) to meet the BSIV emission norms. The SCR technology has found its way into the heavier Pro 6000 Series and Pro 8000 Series trucks. The Pro 5000 Series trucks that the company recently launched in Mumbai employs EGR technology in combination with Volvo’s EMS 3.0 electronic governing architecture. Filling the gap, and turning VE Commercial Vehicles into a full range player according to Vinod Aggarwal, Managing Director & CEO, the Pro 5000 Series trucks range from 16-tonne to 49-tonnes. Found in 4×2 tipper and rigid haulage guise; 8×4 haulage guise, and in 4×2 tractor guise among others, the Pro 5000 Series, is powered by a common-rail 5.7-litre six-cylinder (E694) engine that produces between 170 hp and 192 hp depending on the application type.

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Sporting the Pegasus business grille and twin round head lamp design, which marks a departure from the single unit clear-lens assembly design found on other Pro Series trucks, the Pro 5000 Series is claimed to offer unmatched reliability and optimised operational cost. Expressed Aggarwal, “With the introduction of Pro 5000 Series, we have come to offer the widest range of heavy-duty trucks. The Pro 5000 is available at different price points, and is equipped with intelligent features like fuel coaching and cruise control.” Stressing upon competitive acquisition cost of the Pro 5000 Series trucks, Aggarwal mentioned that they recorded good growth last fiscal. It were more than the industry average.

Faster growth

In FY2016-17, VE Commercial Vehicles performed well. Despite being a challenging year, the company recorded a 12.6 per cent growth against the industry growth of four per cent. Tight planning on inventory, said Aggarwal, helped minimise the impact of the Apex Court’s order to stop the sale of BSIII vehicles from April 01, 2017. VE Commercial Vehicles produced only 2500 units after demonetisation. It was left with 1000 BSIII units in the plant and some 400 to 500 units with the dealers when the court order was issued. A decision to export or convert the BSIII vehicles has been taken, averred Aggarwal. Posting 50 per cent growth in HCVs, 33 per cent growth in MCVs, and 17.5 per cent growth in buses, the company exported 8,500 vehicles last fiscal, an increase of 25 per cent. Informing that the company has introduced a 180 hp bus powered by the E694 engine also found on Pro 5000 Series trucks, Aggarwal opined, “The market feedback we have received is that our bus gives higher fuel efficiency.” It has been sometime now that VE Commercial Vehicles has been increasing its STU exposure. It has supplied buses to KSRTC, BMTC, MSRTC, and Gujarat and Telangana transport undertakings according to Aggarwal. If the captive bus body building plant at Pithampur is proving to be advantageous, access to Volvo technology is also proving to be of much help. The VE Commercial Vehicles joint venture between Eicher and Volvo will turn nine on July 2017, and the EMS 3.0 governing system found on the Pro 5000 Series trucks is a reflection of Volvo technology percolating into VE Commercial Vehicles.

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Powering the heavier Pro 6000 and Pro 8000 Series Eicher trucks are 5-litre and 8-litre engines that are produced by VE PowerTrain (VEPT), a joint venture company between Eicher and Volvo with a plant at Pithampur. The plant replicates the production systems that are in place at the Skovde engine plant of Volvo in Sweden. The engines produced at VEPT plant are also supplied to Volvo locations the world over, and in a form that makes them Euro6 compliant. The engines made at VEPT also find their way into Volvo’s other group entities like Volvo Penta.

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Volvo tech for superior performance

If the EMS 3.0 governing system in the Pro 5000 Series trucks is reflective of Volvo technology percolating into VE Commercial Vehicles, the technology is also helping the CV maker deliver products that promise best in class efficiency. Expressed Aggarwal, “Technologies like EMS 3.0 present the company with a big advantage.” Quipped Gill, that they were the first to introduce cruise control in 2014. When VE Commercial Vehicles was established nine years ago, the Eicher product range that was transferred from Eicher Ltd. to the joint venture company were essentially CVs that employed Mitsubishi technology. With the participation of Volvo, these legacy products were upgraded and turned around to offer a superior experience, reliability, efficiency and low cost of operation. The E694 engine interestingly employs a bit of legacy technology, a bit of UD technology and a bit of Volvo technology claimed sources close to the company. If that provides an interesting insight into the ways of working at VE Commercial Vehicles, it is easier to understand the claim made by Gill that technology and emission norms are not new to them. “We looked at trucks running more, and earning more. As technology leaders, we have installed Eurodip paint tech and robotic welding line for the manufacture of cabins at Pithampur,” mentioned Gill, The Pro 5000 Series of trucks are available with a fully built cabin (long-haul trucks like the Pro 5031 come with a sleeper cabin), and a rolling chassis (cowl). Telematics is optional, and also the M-Booster technology, which is claimed to further enhance fuel efficiency according to Gill.

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Increasing efficiency and performance

VE Commercial Vehicles overhauled the parts distribution network to up efficiency and performance even as it continues to launch new products with the view of addressing the exacting needs of the market. Said Gill, “Over 97 per cent of the parts are shipped the same day. Over 98 per cent of our trucks have delivered on the fuel efficiency promise.” “Our vehicles offer 97 per cent uptime,” he stressed upon. Offering features like fuel coaching and cruise control, which are claimed to reduce driver fatigue and inform the driver and the operator about fuel efficiency, the Pro 5000 Series, it is clear, is a step forward by VE Commercial Vehicles to increase medium and heavy commercial vehicle market penetration. With GST expected to roll out in July, and if delayed, by September 2017, the year ahead looks challenging for the CV industry. VE Commercial Vehicles continues to be confident of growing faster than the industry. To achieve greater market reach, the company, said Gill, has invested in 250 GPS connected breakdown repair vans, and a dial-a-part call centre. The company has 151 3S dealers, 13 2S facilities, and 23 SPD and 160 EGP facilities as part of its network to support its clients.

With BSIV CVs expected to call for better dealer support, what with OBD systems on board, VE Commercial Vehicles is looking at addressing the exacting needs of the CV market. In the wake of rapid changes the market is experiencing, customer expectations are changing. As a full range player, for VE Commercial Vehicles, AMCs and re-built engines, and gearboxes, will matter as the need for up-time rises. The Pro 5000 Series trucks reflect not just upon VE Commercial Vehicles’ capabilities, and its journey into the future, they also reflect upon how the Indian CV industry is changing.

Ashok Leyland: Meeting BSIV with iEGR

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Ashok Leyland has developed iEGR for its CVs to comply with BSIV emission regulations.

Story by:

Bhushan Mhapralkar

Ashok Leyland achieved the feat of complying with BSIII emission regulations when they were enforced in 2010 with an in-line mechanical fuel pump. The fuel governing system of the engine was suitably tweaked. To meet the BSIV emission norms that came into force pan-India from April 01, 2017, the commercial vehicle manufacturer has taken the Exhaust Gas Recirculation (EGR) route. It has developed what it would like to term as intelligent Engine Gas Recirculation (iEGR). Rather than adapt a Selective Catalytic Reduction (SCR) system, the company chose to tweak the engine combustion management system and EGR of both its engine families – H and N, that range between 130 hp and 400 hp. Announced Vinod K. Dasari, Managing Director and CEO, Ashok Leyland, that the technology was developed over four years, and with the view of eliminating challenges pertaining to SCR system in terms of weight and operational costs. Claiming that his were the only company in the world to comply with BSIII emission norms using a mechanical pump, Dasari mentioned, “Better fuel efficiency (of up to 10 per cent), and reliability from the absence of SCR associated electronics are the two outcomes of the iEGR endeavour.” With the elimination of POC, and additional sensors, the BSIV trucks, the company offers, promise to deliver higher payload because of the weight saved. Stating that they have been offering SCR since 2010, and came to conclude that it is useful in long runs at constant speeds, Dasari averred, “India is a value conscious market.” What makes iEGR interesting is the low acquisition cost of the vehicle as compared to the one that is equipped with a SCR system.

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Impact of SC order

Like other Indian automakers, Ashok Leyland was also affected by the Apex Court’s order to stop selling BSIII vehicles beginning April 01, 2017. Not the one to push inventory on to its dealers, the company, according to Dasari, was left with 10,664 BSIII CVs. “It was panic”. “The successful development of iEGR over the last four years helped us to retain our confidence,” said Dasari. A decision to swap the BSIII engines in BSIII CVs was taken. The engines taken out will be sold in the aftermarket, mentioned Dasari. He claimed that no major financial impact was had, and even though the development was painful. “It is a pain, not fun, but we will get over it,” averred Dasari. Till date, 220 BSIII CVs have been converted to BSIV. The cost of swapping the engine per vehicle is roughly Rs.20,000. The BSIII engine costs Rs.1.4 lakh according to Dasari. In the aftermarket, it is expected to fetch a price of Rs.2.2 lakh. Ashok Leyland vehicles, expressed Dasari, are virtually sold on cash and carry basis.

Risk aversion

An endeavour to invade new markets overseas has proved to be of much use to Ashok Leyland in its effort to averse risk. With the Indian market showing signs of much cyclicity off late, the company, which according to Dasari, is the ninth largest truck maker and fourth largest bus maker in the world, is looking at increasing its export thrust. Said Rajive Saharia, President – Global Sales and Distribution, that the company is keen to export one CV for every two CVs sold in the domestic market. Expressed T Venkataraman, Senior Vice President – Global Bus, that the domestic and export sales ratio as far as buses are concerned is 58:42. Buses are exported, he averred, to the Middle East, SAARC, and African markets. Stressing upon the next quarter looking tough, Venkataraman expressed, “We are supplying Euro 5 vehicles to Ukraine, and are going to Latin America.” Quipped Saharia, that more trucks were sold overseas last year than buses. “ Close to 60 per cent of export sales was through trucks,” announced Saharia. The company is looking forward to export LCVs. When it does, the exercise would help it to inch closer to the target of exporting one CV for every two CVs sold in India. Apart from the Middle East, SAARC and African markets, Ashok Leyland is looking at Russia and Ukraine too. In an effort to arrive at streamlined manufacturing processes and higher efficiency, Ashok Leyland has replicated the Ras Al Khaimah plant at Bangladesh. A 200 to 300 unit market will make an attractive export market (in Bangladesh) according to Saharia.

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If Bangladesh is the largest truck export market for Ashok Leyland, the company has began exporting the Boss to Russia. Said Saharia, “Supply of bus kits to Ukraine is on, and local converters are building bodies on them.” Ashok Leyland’s strategy to averse risk and grow faster than the industry reflects from its decision to exit some of the STU businesses. This, for a leading bus player in the country was not an easy task. Said Dasari, “We exited some STU businesses for low profitability.” In its quest to put the Dollar where the returns are, Ashok Leyland made it a point to concentrate on innovative products. The result of this is the introduction of Captain, Guru, Circuit electric bus, Sunshine school bus with roll-over protection, and the Oyster (safest) school bus in the Gulf. Due to its growth potential, Ashok Leyland paid attention to the coal tipper and construction truck market.

Tapping growth

Selling over 200 Guru ICVs till date, Ashok Leyland witnessed good uptake in 10×2 and 8×2 mining tippers and construction trucks. It sold over 1500 units according to Dasari. The share of Ashok Leyland’s mining tipper and construction truck market, claimed Dasari, grew by 50 per cent over the industry average of 30 per cent. From the time it was launched, the company has sold over 3000 Sunshine school buses. There is a waiting list of 500 vehicles. Despite a single product (Dost), Ashok Leyland’s LCV portfolio, said Dasari, witnessed a growth of 4 per cent. Expressed Nitin Seth, President, LCV and Defence, “We are now looking at running faster. We will launch the passenger version of Dost followed by the bigger version of Dost called the Dost+. An eight-metre long bus on the Mitr platform will be introduced. We will also address the demand for 32-seater school bus and a CNG vehicle. These would be developed in left-hand drive variants as well by keeping in mind the export markets.” Ashok Leyland is keen to tap world’s 80 per cent LCV market that is left-hand drive oriented. To cater to the market for smaller buses, the left-hand drive Mitr will be Ashok Leyland’s ace card.

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Apart from expanding the three LCV platforms the company currently has, the plan, according to Seth, is to develop new LCV platforms by 2019-2020. Well aware of the domestic LCV market turning eight-per cent positive for the first time this year, Seth is looking at hitting a six-lakh volume by 2021. Seth is also hoping the LCV to be a bigger player with the coming of GST. In the export markets, Seth is keen to leverage the fact that Nissan LCVs are marketed in many markets making them a familiar sight. With stress on filling up the gaps in the LCV product portfolio by developing new platforms, Ashok Leyland is looking at quadrupling the sale of LCVs with the Nissan joint venture behind it. Keen to sell one LCV for every two LCVs sold in the Indian market, the company is banking on Dost+, which offers a 1400 kg capacity and rides on 15-inch dia. wheels to further increase its LCV market share in the near future. The Dost+ comes equipped with six leaf spring suspension at the rear, and a four-leaf spring suspension at the front.

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Defence business

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Providing further impetus to its defence strategy, the supply of Stallion vehicle kits grew 7.4 per cent, from 3076 numbers to 3304 numbers. With an ambition to cater to 25 per cent of the defence budget, the company has invested in a new defence vehicle facility at its Ennore plant. Special focus is on catering to defence vehicle market. Close to 95 per cent of the UN peace keeping forces in Africa, informed Dasari, use Ashok Leyland vehicles. The company has received 4×4 mine protected vehicle order from the Indian Army, he revealed.

Investing in the right solutions

Happy with the genset volume growth of six per cent on the back of new product variants, Ashok Leyland has begun selling automotive engines. It has received first customer order from USA. Said Gopal Mahadevan, Chief Financial Officer, Ashok Leyland, “We have been doing away with all those inside processes, which do not add value to a shareholder, vendor, customer or a large investor. We are automating a lot of them, eliminating, and streamlining them. With limited resources, we have been judiciously investing employee cost in product development and marketing. Much focus is being paid to achieve a high rate of success.” Claiming that Ashok Leyland is one of the few companies in the world to possess sub-BSIII capabilities since it caters to such markets, Mahadevan averred, “We have BSIII in-line and common-rail tech, and we have BSIV EGR and SCR.”

Owning German SCR specialist Albonair, which supplies Euro6 SCR systems to Volvo, Ashok Leyland, it is surprising, chose to develop iegr rather than to deploy SCR. Said Dasari that stress was laid on offering what would best suit the Indian market. He gave an example of trucks being washed by the river-side with buckets of water. Expressed Mahadevan, “We are attributing growth to addressing the exacting needs of the market. We are the only manufacturer to increase the price of our products in January 2017 by four per cent. We are the only one to gain maximum market share in March 2017.” Averred Dasari that the company’s market share grew from 24 per cent to 32 per cent. Of the view that they have seen good growth despite hiking product prices, Gopal averred, the solutions we offer are about total cost of ownership. Working on multiple channels, Ashok Leyland, to tap growth, worked on increasing the points of presence. “50 to 1,600 is a disruptive force,” said Mahadevan. Putting money on channel expansion rather than discounts, the company concentrated on efficient breakdown services, he added. This, mentioned Gopal, was necessary because the vehicles sold by them are often misused, and are therefore prone to a breakdown.

Apart from investing in the channel, Ashok Leyland has also invested in new products. The Boss, Captain, Partner, Janbus, Mitr, Guru, and others are a point in case. The company leveraged technology to address the requirements of the customers at any given time. This helped the company to secure an order from USA. Claiming that dealers appreciated company’s policy to not push inventory, Gopal opined that a clear focus is on return on investment at Ashok Leyland when it comes to technology. He explained, “As far as technology is concerned, ours is the only electric bus that climbed the Rohtang pass without a breakdown.” Ashok Leyland is building its capabilities in parallel. It is digitising. Mentioned Rajive Saharia, that Ashok Leyland is banking on digital initiatives for growth.

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Digitisation

Digitisation for Ashok Leyland, apart from common-rail engines, means telematics and a slew of ‘support’ technologies. Mentioned Dasari, “We developed a new way of providing telematics in the form of a single device that works on any Ashok Leyland vehicle, and without any kind of engine or associated architecture. It provides driver information, diagnostics, etc., and is found on BSIV CVs.” Ashok Leyland has developed a scan tool for onboard diagnostics for a fraction of a cost, and sans the need for a laptop. The company has also developed Ley Assist, which according to Dasari is a Bluetooth operated phone based tool to diagnose error without any physical connection. Looking at autonomous vehicles and vehicle platooning technologies as the future, the folks at Ashok Leyland are working in that direction, albeit with limited resources. Expressed Mahadevan, “I have limited Dollars, and I am spending them efficiently.” “Our net price realisation in March was better than in February, and it is something that is hard to believe but true,” he added. Ashok Leyland is paying attention on logistics and supply chain. It is also paying attention to improve the capabilities of tier 2 suppliers. Revealed Mahadevan that stress is on pertinent technology; technology that will sell. “We are thus keen to build an engine portfolio, and turn it into a separate line of business. A lot of our engines are used for marine applications besides gensets,” he signed off.

STRAIGHT DRIVE

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Frugal engineering attributes are becoming more and more visible as new commercial vehicles are introduced.

Rentals rose in February on trunk routes. The rise was linked to an increase in diesel prices, which inched up as international crude prices rose due to the depreciating US Dollar. When the fuel prices started going down, the Government chose to hike taxes. The benefit of low crude prices never made it to the Indian public. Further rise in crude prices cannot be ruled out, and for fleet operators who could pass on the rise in rentals smoothly, the pressure on operating margins is likely to go up even if slightly. Chances of a reduction in excise duty are next to nil. With the demand for yet another cut in interest rate gaining force on the back of an easing inflation, it may be necessary to understand that the efforts taken by manufacturers to introduce efficient, comfortable and cost competitive commercial vehicles is part of a race to meet stringent emission norms among others.

Growing on a small base, the commercial vehicle industry continues to be under pressure. It is not surprising to witness manufacturers exert an export thrust hence. The domestic market continues to be replacement driven; LCVs look like they are out of the woods. Demand for higher tonnage vehicles is growing. Frugal engineering attributes are becoming more and more visible as new commercial vehicles are introduced. Enhancing comfort, efficiency and performance, they are finding a way into the most unexpected places – seats with anti-bacterial fabric, lower step height for easier ingress and egress, and a quest to attain Euro 6 emission compliance at far less than what it took in markets like Europe. The silent revolution in the Indian commercial vehicle industry continues. It is also drawing the attention of the world as new ways to deal with challenges are sought.

Bhushan Mhapralkar

b.mhapralkar@nextgenpublishing.net

Commercial Vehicle Magazine

@cvmagazine

The Indian CV is no longer limited to the Indian boundaries.

 

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Article by: Bhushan Mhapralkar

The Indian CV is no longer limited to the Indian boundaries. It is making itself known the world over

The Rajya Sabha, through an amendment in the Motor Vehicle Act of 1988 has given a final nod to e-rickshaws. The only rider being that these will have to be made in India, rather than from imported kits. A driving license is a must and will be issued after a year of learning. This would not have happened without the initiative and efforts taken by the road transport and highways minister Nitin Gadkari, who has also stressed on the use of concrete to make roads. He has also spoken about an ambitious plan to lay 30 km of roads per day in the next two years. With mining activities and infra projects set to resume, the commercial vehicle sector in India will see the return of better days. While heavy commercial vehicle sales have come into a positive zone, those segments that are dragging have shown growth in sales too, though it will take some more time until they return to positive. Industry confidence is on the rise, and is reflected by developments such as the Scania bus plant going on stream, and Tata Motors introducing the Super Ace Mint to address the rising aspirations of the small commercial vehicle buyer. With issues like scarcity of drivers and higher interest rates continuing to plague the CV sector, the influx of young, educated entrepreneurs is proving to be a ray of hope. A big shift is due in the CV sector as sales rise. If the Tata Prima T1 racing championship could attract 45,000 people, it is certain that the Indian CV is no longer limited to the Indian boundaries. It is making itself known the world over. It is finding acceptance in some of the most demanding markets in the world. It did not surprise me when an Indian gentleman with a slightly heavy accent walked up to me at the Budh International Circuit and said that the Prima had found its way to the Middle East. If the Tata Prima found its way to the Middle East, the bus chassis manufactured at Daimler’s Indian operation found its way to Egpyt. Even before the first bus for the Indian market has found it way out of the Daimler plant in Chennai.

Indian commercial vehicles are enjoying a rising acceptance in the SAARC region, the Middle East and in the African continent. I was not surprised when a gentleman who runs a used CV e-commerce platform expressed that he got an inquiry from an African operator for a certain CV that he found to have been listed on the site. Rising commerce between the African countries and India, is set to give shape to a India-Africa story while American, European and Japanese manufacturers continue to be busy addressing the needs of their markets. Perhaps not finding the time and the right resources to serve a market like Africa. Clearly, Indian commercial vehicles are finding favour in Africa over those sourced from other parts of the world, including China. This seems to be a trend in the SAARC region too. The arduous operating environment in the SAARC, African and Middle-Eastern environments seem to work in favour of the robust-built Indian commercial vehicles.

Bhushan Mhapralkar

b.mhapralkar@nextgenpublishing.net