The second panel discussion focused on technology and innovation in the CV sector.
Responding to VG Ramakrishnan’s question on the move up to BS VI, Vinod K. Dasari mentioned that they came to know of the developments from the media first. He stated that as part of SIAM they have met the (minister) many times. “The industry’s position is that we will always meet whatever regulations that are there in the country. We have consistently adopted regulations faster than any other country in the world.” mentioned Dasari. “In Europe, the migration from Euro IV to V took about five years; from Euro V to VI it took about six years. Some countries have gone from Euro IV to VI in 10 years, some have taken 12 years to get there. The commercial vehicle industry in India is being asked to do it in three years. It needs to be considered that the duty cycle (in India) is different; the driving cycle is different,” Dasari explained. Mentioning that what is there in Europe cannot be simply cut and pasted here, Dasari expressed that a lot of work needs to be done in the next few years. Questioning the availability of fuel by 2020, he averred, “People say that Tata, Mahindra and Ashok Leyland do not have Euro IV technology. We have it since 2010. We are not offering it here because there is no fuel available. The petroleum industry is now saying they will make fuel available for Euro V from 2020, which is the same fuel for Euro VI. I think we are making emotional decisions. If there were Euro VI in India today, trucks would be actually purifying the air,” he added.
Industry ready
Mentioned Erich Nesselhauf that rather than worry about the industry’s readiness it is necessary to find out if the infrastructure is there. “Without infrastructure (fuel) it would not work. Also, if we would decide to scrap old vehicles not more than 15, and more than 10 years, there would be a lot of movement,” Nesselhauf said. He opined that there was a need for the government to tell before hand since there’s also the issue of finance. Offering a media perspective, Bhushan Mhapralkar expressed that suppliers have been closely working with OEMs on Euro IV and Euro V projects. The products are exported by Indian OEMs. Dasari exclaimed, “Expecting suppliers to invest will not be an issue in case of the move up to Euro VI. The question will be when. If the fuel is available and the oil industry invests Rs. 30,000 crore to reach that level, there will be tremendous pressure on ministry of road and transport to make sure that the auto industry moves up to Euro VI. The Supreme Court banned diesel vehicles. I thought about the data that was provided. To stop pollution, the need is to stop polluting vehicles. There’s no point in stopping a (BS IV emission compliant) vehicle, which has the lowest emission in Delhi. Unless the industry moves to Euro VI therefore, such emotive decisions will be made.”
Teaming up for technology
Avinash Belgamwar suggested a need to team up and develop a technology that will give substantial returns. Ramashankar Pandey averred that the industry has done a good job in the past; has done the norms as per the requirement. He called for a need to debate publicly; for the industry to reach out to the judiciary and the politicians. Stating that it is they who are much more responsible for purifying the air, Pandey opined that a business case of technology and innovation has to come through communication.
Cost implications
On the issue of technology and costs, Nesselhauf expressed that connected vehicles will dot the future. He drew attention to the use of electronics in transmission, which helps it to anticipate a slope and change gear automatically. Nesselhauf opined that more electronics will find its way into CVs. Stated Dasari, that if the price goes up (because of technology) and the (buyer) does not see return on investment he will not buy. Pricing will be set by the market. If everyone’s cost goes up, the price will increase. “The after treatment of Euro VI costs more than the engine. It’s not going to come for free. Some of the cost increases will have to be absorbed because of market considerations, and margins will thus come down. The other alternative would be to increase the price. The operator will charge a higher freight rate,” he explained.
Effect of Euro VI on the independent aftermarket
Responding to VG Ramakrishnan’s query on the effect of Euro VI on the independent aftermarket, Nesselhauf said, “The aftermarket will find it difficult.” Dasari, at the other end, stated that there are many technologies that are available. I would like to break them in two categories. One is the list of technologies that will come because of regulation. The likes of bus body, crash worthiness, etc. There will be technologies that the customer will choose. The likes of telematics, remote diagnostics and prognostics. In India, customers are extremely value conscious. They will choose it only if it reduces the total cost of operation, or provide benefits that can be monetised. Opined Pandey, that there is a need to educate the customer in the use of technology, for him to make a business case out of it. “Educate the customer and he will come asking for it,” he mentioned.
Technology evolution and value addition
While Avinash Belgamwar stressed upon an opportunity for technology like ‘connected vehicles’ to play an important role, Nesselhauf expressed, “Over technologies that help connect the smart phone to the vehicle’s computer and retrieve data what a customer wants is to know when he could pick up the load; the position of his truck, and what is the fuel efficiency it is delivering. There will be a need to reduce the vehicle weight; remove 1000kg per tonne.
On future technologies that will add value, Dasari said, “Technologies applied in India will not be the same. In the case of GPS, a new way of employing the technology has been devised by issuing an SMS the moment the driver drives past a mobile tower indicating his position. There’s no need for a smart phone. We will continue to compete in the world with the same level of regulations or norms at substantially lower costs driven by value conscious customers.”
Change is constant
Connecting the need for technology and innovation to an extremely challenging environment, Nesselhauf expressed that there’s always this thing about ‘if we made it someone else can’. Pandey drew attention to the digitisation of technology. He chose to connect it with the pace of change. While Pandey stressed upon the need to retain drivers and care for them and their families, Dasari stated that he has great belief in the Indian supply chain. “When faced with a challenge, suppliers are certain to come up with a creative way, which is often dismissed as ‘Jugaad’. It is not ‘Jugaad’ when the same level of regulations are achieved in an inexpensive manner,” Dasari averred. Responding to VG Ramakrishnan’s question on investment in technologies that have enhanced safety, Pandey said, “We have worked with most OEMs in pursuit of the product of the future. On the volume count, we are not looking at one player to finance it. We are investing in standard products that can be mass customised; can have a different signature for different customers, and yet have the same core.”
Going electric and devising new ways to devising smarter CVs
On electric CVs, Dasari mentioned that no where in the world has an electric bus been sustainable from a business economic standpoint unless there is a state funding. “If our government is serious and wants to fund a certain element of it, there will be a lot more growth coming in for electric buses.” “Electric buses cost substantially more than a normal bus,” he added. Expressed Belgamwar that electric is not the future because of the cost of replacement. “Hydrogen, I think, holds promise. He drew attention to work being carried out on feeding hydrogen and oxygen as a combination; have only oxygen and not air as an intake to arrive at a exhaust-less vehicle. Averred Bhushan, that as a CV magazine their rendezvous with technology during the past one year has been in the area of telematics, AMT and alternate fuel as well as smarter vehicles, which have more electronics in them; offer higher level of comfort and pride of ownership, enabling the operator to conduct business in a profitable manner.
Said Nesselhauf, that electric vehicles will dot the future, what with the capacity of solar panels going up every year and their price coming down. “Talk about city transportation, and about covering 150 to 200 km per day, it is simply amazing. It is easy and convenient. Another five years, and we will see them on the road,” he mentioned.
Dasari pointed out at alternative fuels like CNG, LNG, bio-fuel and ethanol. “Alternative fuels are evolving, and they are available in India and would therefore work out to be cheaper. To make them work and achieve Euro VI could be another avenue of technology,” he said. “As SIAM president, I would like to mention that the auto industry generates 30 billion jobs. A third of the manufacturing GDP comes from auto; more than 10 per cent of the R&D happens in the auto industry. However, if there’s a traffic jam, accident, or air pollution it is the auto industry that is blamed.” added Dasari. Drawing attention to the Delhi Government sponsored IIT Delhi study done prior to the court visit, Dasari remarked, “The auto industry generates less than 20 per cent pollution, of which 15 per cent comes from cars. That makes it 3 per cent. In the wake of the move to take the least polluting car and ban it, I think the auto industry needs to wake up; do things pro-actively and collectively.” He concluded, “Our focus on competing with each other doesn’t mean that we form a cartel. It could instead mean improving the image of the industry.”
Vinod K. Dasari, MD, Ashok Leyland
Avinash Belgamwar, MD, Nextmotive Motors Pvt. Ltd.
Erich Nesselhauf, MD & CEO, Daimler India Commercial Vehicles
Ramashankar Pandey, MD, Hella India Lighting Ltd.
Bhushan Mhapralkar, Editor, Commercial Vehicle
Moderator:
VG Ramakrishnan, MD, Aventeum Advisors LLP
