AUTO COMPONENTS INDIA JUNE 2023

8. Newscast

4 300 Delhi EV stakeholders shape up EV Policy 2.0

4 Most Indicators Are In The Green

4 R. Dinesh elevated as the new CII President

4 MSEDCL focus on e-charging infrastructure

4 Pedestrians at risk find BOSCH

4 Sona Comstar and Equipmake collaborate

4 Pricol and Minda litigation

4 Entered FY24 With A Strong Momentum

4 Gabriel India and Inalfa Roof Systems collaborate

4 Continental Tires partners Indag Rubber

4 CEAT tyres on the MG Comet EV

4 Castrol India enhances auto care range

4 Statiq expands its footprint in U.P.

4 McDermott bags the IOCL contract

4 JOST KKS-U connector

4 Apollo Tyres in the EU aligns with GPSNR

4 Volkswagen Group dieselgate

38. Globescan

4 New Assessment and Testing Methodology for Vehicle Type Approval - Part 3

41. Trendsmap

4 Social Media Highlights

14. Upfront

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More Headwinds

The June issue will draw your attention to the critical role of cooling systems spanning Internal Combustion Engines (ICE) and Electric Vehicles (EVs). Comprising an estimated two per cent of sales up until H1FY23, the OEMs continue to work closely with the tier suppliers to ensure that these systems and products are designed to optimise vehicle performance. From smart engines that are more efficient and offer enhanced mileage to diesel cycle natural gas engines and liquid-cooled engines, the issue covers it all. In the case of EVs, liquid-cooled battery packs have carved a niche for themselves. The issue also features leading industry voices who rank the performance in FY23 and forecast for FY24.

The official confirmation of Germany, the fourth largest automotive market, entering into a recession comes as a disappointment, given that the EU is among the primary export destinations. A debt ceiling deal for the US, a slower spending rate, and technical recessions in markets like Singapore are giving the chills this summer. Cooling systems exports account for an estimated one per cent in comparison to 33 per cent of drive transmission and steering in the overall exports pie. The former witnessed an estimated 36 per cent increase to reach the recorded levels of FY22.

Of the overall imports, these systems account for an estimated five per cent, compared to 31 per cent of imports related to drive transmission and steering. The Industry’s anticipation of a looming recession in the EU and the US add to the headwinds in an otherwise upbeat market.

“The Industry’s anticipation of a looming recession in the EU and the US add to the headwinds in an otherwise upbeat market.”

Ashish Bhatia Editor

a.bhatia@nextgenpublishing.net

ashish@atashishbhatia.com

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Editor Ashish Bhatia

Ashish Bhatia

80 per cent of public transport in Delhi to be fully electric by 2025.

300 Delhi EV stakeholders shape up EV Policy 2.0

Structural changes in the advisory board at CII.

by

R. Dinesh elevated as the new CII President

The Confederation of Indian Industry (CII) has made a few structural changes in the advisory board. R. Dinesh is elected as the President of CII for 20232024. He succeeds Sanjeev Bajaj, the past President of CII who was elected in May 2022, currently serving as the Executive Vice Chairman, of TVS Supply Chain Solutions Ltd. Further, Rajiv Memani, serving as the Chairman of India Region and Chairman of, Emerging Markets Committee, Ernst & Young LLP assumes office as the Vice President, of CII for the year 2023-24. Additionally, Sanjiv Puri, Chairman and Managing Director, ITC Limited assumes office as the President-Designate, CII for the 2023-24.

Kailash Gahlot addressed the EV stakeholders at a summit in New Delhi. The meeting aimed at consulting 300 stakeholders had him draw attention to Delhi switching 80 per cent of public transport to fully electric by 2025. Held at the India Habitat Centre in partnership with RMI India Foundation and Climate Trends, the workshops generated a huge pile of suggestions to be looked at by the government. These revolved around the faster connection for EV charging, attractive finance for different models, cost reduction of EVs and the building of charging and parking infrastructure. In a panel discussion, Radhika Tomar, Head – of Energy Sector Reforms, British High Commission, urged the need to ensure workplace charging. She said, “In the UK, we have an incentive model which covers 75 per cent of the CapEx.” Principal Secretary of Transport, Ashish Kundra while responding to the suggestions, added, “The credit loss guarantee suggestion that we got from various stakeholders is a tricky thing to follow as the market is in a very nascent stage but we are working on it.”

MSEDCL focus on e-charging infrastructure

Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) has decided to develop e-charging stations along highways passing through Pimpri-Chinchwad, in Pune. This is to meet the need for inadequate charging infrastructure. A new charging station was recently inaugurated at the Ganeshkhind Sub-Divisional office on the Senapati Bapat road. At present, there are 15 operational charging stations under the jurisdiction of MSEDCL Pune Circle. The MSEDCL has also developed the ‘Power App.’ for EV consumers. Through it, consumers can locate the nearest charging station, self-charge their vehicles, and make online payments.

‘Power App.’

MSEDCL for EV consumers.

Pedestrians at risk finds BOSCH

During the seventh UN Road Safety Week, Bosch Ltd. published a thorough study evaluating pedestrian behaviours. The report aims to comprehend the features of pedestrian accidents in India and find solutions to enhance road safety. According to the report, pedestrian deaths are a significant safety problem in India, where they account for nearly one-tenth, of traffic-related fatalities. 68,053 pedestrian accidents were reported in 2021 by the Ministry of Road Transport & Highways (MoRTH), accounting for 16.5 per cent of all incidents that year. The report is based on the indepth accident database of over 6300 cases of the Road Accident Sampling System for India (RASSI). Commenting on the findings, Girikumar Kumaresh, Principal Advisor Road Safety, Future Mobility & Expert Accident Research, Bosch India,“Our report on Indian Pedestrian Behaviour sheds light on the contributing factors to pedestrian accidents and highlights the need for effective road safety measures and a multidimensional approach to improve traffic safety in India. As individuals, we must also prioritise safety by following traffic rules and being vigilant on the roads.”

Sona Comstar and Equipmake collaborate

Sona BLW Precision Forgings

Ltd. (Sona Comstar) has inked a technical licencing agreement with Equipmake, a technology firm from the UK. As a highperformance electric powertrain, its proprietary technology is claimed to offer higher power density and efficiency. Its performance makes it apt for electric cars, buses, and commercial vehicles. According to the terms of the agreement, Equipmake will licence certain proprietary spoke motor and inverter technologies in the power range of 100-440 kW to Sona Comstar for Sona Comstar to in turn produce and distribute EV powertrains, sub-systems and components including for off-road vehicles. Commenting on the partnership, Sat Mohan Gupta, Chief Executive Officer of Motor Business at Sona Comstar, said, “This is yet another step towards our commitment to offering innovative solutions to drive faster adoption of electric mobility in India and globally.” Sona Comstar will lead the business in India, Thailand and select South Asian countries, while Equipmake will cover the rest of the markets.

Pricol and Minda litigation

Pricol Ltd. (Pricol) has filed Writ Petitions in WP No.16079 and 16081 of 2023 before the Honorable High Court (HC) of Madras in connection with Minda Corporation Ltd. (Minda) also filing an application to the Competition Commission of India (CCI). The HC has also issued a notice to the opposite parties. The petition is filed against investing in equity shares of up to 24.5 per cent of the total equity shares of Pricol. This is part of a conflict between the two companies that are traced to February 2023, when Minda paid Rs.400 crore in an open market deal to purchase 15.7 per cent of Pricol. The Madras High Court has passed an interim order restraining CCI from taking the file or adjudicating the Minda Corporation application for acquiring the mentioned stake in Pricol.

Pricol and Minda Corporation conflict petition.

Power range of 100-440 kW for proprietary tech.

Pedestrian deaths account for 1/10th of traffic fatalities.

Investment

of Rs.170 crore and operational by 2024.

Gabriel India and Inalfa Roof Systems collaborate

Gabriel India Ltd. has joined hands with Netherlands-based Inalfa Roof Systems to manufacture sunroofs in India. Looking beyond its core forte of suspensions, Gabriel India together with Inalfa plans to set up a new manufacturing facility in Chennai, Tamil Nadu. The new facility, Inalfa Gabriel Sunroof Systems (IGSS) will involve an investment of around Rs.170 crore and will become operational in the first quarter of 2024. The facility will have the capacity to produce 200,000 sunroofs per annum. The IGSS will employ around 250 employees at its facility. The new venture will commence order fulfilment with supplies to Hyundai, Kia after which the sunroofs will be supplied to other OEMs.

Continental Tire partners Indag Rubber

Continental Tires has collaborated with Indag Rubber Ltd. to promote tyre retreading. The former has signed an MoU with the latter to help extend the tyre’s life. During the pilot run, the warranty program and retreading services will be provided to TBR Normal Load (NL) fleets through retreads from the three markets - Delhi NCR, Rajasthan, and Maharashtra. As a part of this partnership, Continental Tires will provide a second-life warranty on NL casings following Conti Bharosa. Indag, on the other hand, will provide a warranty on the retreading procedure and the tread rubber on the NL fleets. Once the pilot projects are completed, the programme will be extended to pan India.

CEAT tyres on the MG Comet EV

CEAT Ltd. and MG Motor India Pvt. Ltd. have partnered to supply the CEAT EV-specific range of tyres for the all-new MG Comet EV. ‘EnergyDrive’, this tyre range is claimed to offer lower rolling resistance and thus ensure a better range. Speaking of the collaboration, Arnab Banerjee, Managing Director and Chief Executive Officer, of CEAT Ltd. commented, “The launch of the MG Comet with CEAT tyres will provide a comfortable, safe, and eco-friendly driving experience for Indian consumers.”

‘EnergyDrive’ tyre range offers lower rolling resistance.

Continental Tires will provide a second-life warranty.

Advertising in traditional media continues to enjoy high trust amongst consumers, with 86%* expressing confidence in print –making it the most trusted medium.

* ASCI - ISA Report Findings

Newscast

Newscast

McDermott bags the IOCL contract Castrol India enhances auto care range

McDermott has been awarded a Project Management Consultancy (PMC) contract from Indian Oil Corporation Ltd. (IOCL). The contract involves setting up the Maleic Anhydride (MAH) unit at the Panipat refinery and Petrochemical complex, located 100 kilometres from New Delhi. This would be India’s first mega-scale MAH plant to manufacture chemical products like polyester resins, surface coating plasticisers, agrochemicals and lubricant additives, as per company claims. It will also include Tetra Hydro Furan (THF), which is widely used in adhesives and vinyl film, and Butanediol (BDO), used in engineering-grade plastic and biodegradable fibres. Speaking on the collaboration, Vaseem Khan, Senior Vice President, Onshore at McDermott mentioned, “McDermott has a long-standing relationship with IOCL and is currently executing three large-scale projects at their Barauni and Haldia refineries.”

Statiq expands its footprint in UP

Statiq has launched a public fast EV charging station at the Lucknow premise of the Fun Republic mall. This development is aimed at giving an impetus to alternative and cleaner fuel-based green mobility in Lucknow. Equipped with two DC fast chargers of 60 kW, the charging station includes a range of guns to charge an EV up to 80 per cent in about 40 minutes. It also enables two cars to be charged simultaneously at this station. “The popularity of the mall, the large footfall and the strategic location make it the perfect venue for this public fast EV charging station allowing easy and convenient access to quick charging services for the city’s ever-growing EV owners,” commented Irfan Kawoosa, Head of Investor and Franchise Relations, at Statiq. Recently, Statiq has also set up a similar charging station at Bareilly, in Uttar Pradesh. By the end of the year, Statiq aims to establish a 20,000 strong charging network.

Castrol India Ltd. expands its product portfolio by launching a range of premium auto care products. The new range of products includes Castrol Chain Cleaner, Castrol Chain Lube, Castrol 3-in-1 Shiner, Castrol 1-Step Polishing Compound and Castrol Anti-Rust Lubricant Spray. These products are designed to fight rust, dissolve oil and grease, and provide gloss and shine. The company also plans to further explore the inclusion of other auto care products to cater to customer needs. To reach its customers, Castrol India will leverage its extensive network of distributors, modern trade partners, e-commerce channels and Castrol Auto service outlets and bike touch points.

Sandeep Sangwan, Managing Director, Castrol India Ltd. states, “The auto care segment is growing at a rapid pace with today’s consumers being increasingly invested in the care of their vehicles, thereby creating a need for reliable and trusted brands. Castrol’s range of auto care products will cater to this requirement.”

Auto

Care segment is growing at a rapid pace.

Equipped with two DC fast chargers of 60 kW.

India’s first mega Maleic Anhydride (MAH) plant.

Apollo Tyres in EU aligns with GPSNR

Aligning with the code of conduct set out by the Global Platform for Sustainable Natural Rubber (GPSNR), the EU unit of Apollo Tyres Ltd. (Apollo Tyres) will source 100 per cent of its natural rubber supplies from companies committed to sustainability throughout the supply chain. The new initiative is a part of an Apollo Tyres global sustainability strategy and through this natural rubber will be supplied to the company’s two European production facilities in the Netherlands and Hungary. By supporting the GPSNR policy framework, Apollo Tyres is avoiding unsustainable practices that might negatively impact the climate, wildlife, human rights and local economies as per claims made.

Newscast I International

JOST KKS-U connector

With its KKS automatic coupling technology, JOST offers couplings of the future. An innovative system for coupling is made up of the KKS 42 fifth wheel coupling, Modul e-Drive electric landing gear, sensor coupling system, three sensors, LubeTronic automatic lubrication system, KKS remote control, and the ISO 13044-2-certified KKS connector. Existing trailers can be retrofitted with the KKS-U Connector. The KKS was previously a solution for new trailers and mixed fleets. Fleet managers can easily connect preexisting trailers with the KKS by using the KKS-U connector, with an installation option from underneath the trailer. “Due to a particularly straightforward installation, they can be effortlessly equipped with the KKS system. No modifications to the trailer chassis are necessary,” claimed Andreas Jakubin, Product Manager KKS.

Volkswagen Group dieselgate

The long drawn 2015 battle of the VW Group has reached a settlement stage. Texas Attorney General Ken Paxton claimed that Volkswagen and its Audi division have reached a USD 85 mn settlement in principle over alleged environmental law violations related to the diesel cheating scandal. According to Paxton, the deal mandates that the German manufacturer pay a USD 85 mn civil penalty. The Texas Supreme Court decided in favour of the proceedings of the State environmental lawsuit. Volkswagen, which declined to comment right away as per reports, is said to have paid over USD 20 bn to settle the U.S. lawsuits brought about by the diesel gate or emissions scandal. The courts have previously determined that this does not exclude them from liability to municipal and state governments.

Most Indicators Are In Green

Q. How were the FY23 sales and production volumes for VECV and from a Total Industry Volume (TIV) standpoint?

In an Upfront Conversation, Vinod Aggarwal, President, SIAM and Managing Director and Chief Executive Officer at VE Commercial Vehicles Ltd. spoke to Ashish Bhatia on most indicators being in green barring the developed economies posing a challenge.

A. The fiscal year FY23 proved to be a fruitful one for the entire CV industry, including VECV. We broke all our earlier records by surpassing our earlier peak levels of 2018-19. In FY23, we sold 79,623 vehicles as compared to 57,077 units last year in FY22, marking a growth of 39.5 per cent which beat industry growth. This has been possible on the back of our continuous focus on uptime for our customer.

Talking about the industry, the TIV for FY23 stood at 4,74,177 units marking a growth of 38.1 per cent as compared to FY22. The growth was due to the improvement in freight movement across the country and the healthy infrastructure spend by the government. While the growth figure looks positive, it is still away from the peak of 2018-19 when the TIV stood at 557,517 units indicating a huge room for additional growth in coming years. With all the positives in place, we hope to see the CV industry reach its peak level of 201819 very soon.

Q. Which segment outperformed and is likely to take the momentum into the next fiscal year?

A. The Heavy Duty (HD) truck industry has grown strongly by 50.5 per cent due to the government focus on infrastructure development as well as the overall economic growth. In addition to this, the Light

and Medium Duty (LMD) segment has also witnessed a growth of 46.2 per cent due to the growing demand for intra-city and last-mile transportation. Similarly, demand for buses, most severely impacted by the pandemic, is now almost back to pre-Covid-19 levels with the re-opening of schools and intercity travel taking off, registering a growth of 258.8 per cent in the segment this year.

At VECV, we have sold 79,623 vehicles in FY23 as compared to 57,077 units sold last year in FY22 marking a growth of 39.5 per cent. The growth has been robust and consistent during the year, and we have been able to increase our presence across segments. In LMD trucks, we have grown our volumes by 20.8 per cent to 37,318 units in FY23. In HD trucks segments, we have significantly increased our presence with the growth of 74 per cent and registered highest ever yearly volumes of 18,965 vehicles in FY23. In the bus segment, we grew by 301.7 per cent to 14,924 units in FY23, also the highest ever in a year.

Q. Any key takeaways that are fodder for the next fiscal year from both domestic as well as exports business perspective?

A. Despite various macroeconomic and global challenges, the GDP growth forecast for India remains buoyant at around seven per cent. Hence the domestic automobile industry’s sales volume is also expected to grow as there is a very

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Ashish Bhatia

“While the growth figure looks positive, it is still away from the peak of 2018-19 when the TIV stood at 557,517 units indicating a huge room for additional growth in coming years.”

close link between the two. The growth momentum is expected to be supported by favourable demand sentiments and various government initiatives for rural and urban development.

The industry is further witnessing a migration to tractors and trailers in the HD segment because of the improvement in road infrastructure. As more migrations happen, more replacements will be required, which would lead to more demand. The second driver for

growth this year will be construction trucks, and the industry will see more demand for the same as the government continues to focus on improving the infrastructure.

To keep up with the new advancements, the industry must keep investing in new technologies. The industry might see a lot of movement toward the LNG truck in the long-haul segment, and the use of CNG might also increase with the recent correction of prices, as far as migration to alternative fuels is concerned. Additionally, the work on hydrogen fuel is still in progress as the industry will take around three to four years

to be ready with the technology. The industry will experience slow and steady movements toward newer technology.

With a pro-growth budget in place, the CV industry in the domestic markets is expected to experience sustained growth. We are confident and optimistic that the CV industry will soon reach its peak level of 2018–19 thanks to robust demand and economic expansion.

Q. Are the core economic indicators pointing in the right direction?

A. Commercial vehicle sales and industrial GDP have a wellestablished positive association. As a result, it serves as an indicator of the state of the economy. During the pandemic, the CV market in India hit multi- year lows however,

“The industry might see a lot of movement toward the LNG truck in the long-haul segment, and the use of CNG might also increase with the recent correction of prices, as far as migration to alternative fuels is concerned.”

a rebound in economic activity and the restoration of interstate travel by individuals has led to a significant increase in demand for commercial vehicles from a variety of industries, including FMCG, construction, mining, e-commerce and city and interstate travel.

“While most of the indicators are in green, there will be some challenges owing to recession in the developed economies, high levels of inflation, and supply chain issues prevailing due to ongoing geopolitical issues.”

The government has put in place policies to grow India’s GDP to USD five trillion with several initiatives like the creation of the National Infrastructure Pipeline of Projects, the encouragement of capital expenditure, implementation of various PLI schemes, completion of the National Monetisation Pipeline of Public Sector Assets, and the formulation of the National Logistics Policy. The government has also laid focus on clean mobility solutions and

net zero objectives with the launch of the National Green Hydrogen Mission which has a total outlay of Rs.19,700 crore.

While most of the indicators are in green, there will be some challenges owing to recession in the developed economies, high levels of inflation, and supply chain issues prevailing due to ongoing geopolitical issues.

Q. How does that translate into sales across the truck and bus subsegments?

A. The growth in the CV industry is directly proportional to the growth of the economy, which is set to grow in FY24. All the above activities will translate into sales, and the uptake in the infrastructure segment will increase the sales of the heavyduty segment. While the growth in e-commerce will drive the sales of LMD vehicles, buses will gain with replacement demand from schools and offices and uptake in demand for intercity travel.

Q. From a green mobility perspective, and based on the showcase at Auto Expo 2023 most recently, what are the focus areas across I&LCVs and M&HCVs?

A. At VECV, we are committed to Government’s vision for a sustainable, efficient, and

affordable logistics ecosystem through application-specific alternate fuels, and smart support solutions. Recently, we showcased a range of clean and energyefficient vehicles at Auto Expo 2023, namely, India’s longest 13.5m electric Intercity Coach, Eicher Pro 2049 electric 4.9-tonne GVW truck, Eicher Pro 8055 LNG/ CNG truck and Volvo FM LNG 420 4x2 Tractor. These vehicles are a mix of electric, CNG, and LNG fuel base, indicating a need for diverse solutions for each segment. When it comes to LMD, electric and CNG are viable options, while LNG makes more sense for HD vehicles. For buses, electricity will be the go-to option as of now for the intra city public transport.

Q. Any white spaces that you are looking to fill?

A. As India’s third largest manufacturer we constantly evaluate industry developments and we continue to develop state-of-

the-art and economically superior solutions to our customers.

Q. Where do the gasification plans vis-a-vis the supply-demand energy matrix stand?

A. In terms of the supply-demand energy matrix in the Indian auto industry, the focus has been on reducing emissions and improving fuel efficiency through the adoption of electric and hybrid vehicles, as well as the use of alternative fuels such as CNG, LPG, and biodiesel. The Indian government has also set a target of achieving 100 per cent electric vehicle sales by 2030, which indicates the country’s shift towards a greener energy matrix in the automotive sector. However, there are some challenges related to infrastructure, raw material sourcing, etc. While the government is working to address all these issues, completely transitioning the industry will take some time.

In such a scenario, fuel such as CNG and LNG are viable options, especially CNG, which is affordable and greener in comparison to diesel. It has witnessed good traction in the industry. At VECV, we offer the widest range of CNG vehicles

“The total manufacturing capacity is scalable up to 1,40,000 vehicles which puts us in a strong position to grow our share of the commercial vehicle industry in India.”

starting from 4.9-16-tonne. As far as LNG is concerned, it’s a highly fuel-efficient option for longhaul application. But the Indian transportation ecosystem is not entirely ready for it. There are a few challenges related to its storage. However, VECV always believes in staying ahead of the curve and recently at Auto Expo 2023, we showcased an Eicher Pro 8055 LNG truck specifically designed to meet needs for clean transport in long-haul applications. We also showcased Volvo LNG-powered FM 420 4x2 Tractor, which is under trials and expected to be launched in India when the conditions are suitable.

Q. How do the Pithampur plant and the new Bhopal plant with its capacity augmentation place you to meet the near to medium-term demand?

A. VECV has always spearheaded the future of Indian trucking with next-gen vehicles and innovative support solutions. The company has best-in-class manufacturing facilities with the latest technology to cater to dynamic market requirements and evolving customer needs. The Pithampur plant has a production capacity of over 90,000 vehicles per year. The plant is equipped with state-of-the-art manufacturing technologies and produces a range of commercial vehicles, including buses, trucks, and heavy-duty trucks. On the other hand, the new Bhopal plant, inaugurated in 2020, has an initial production

capacity of 40,000 units per year. It is dedicated to producing our light and medium-duty trucks, which are in high demand in the Indian market. The total manufacturing capacity is scalable up to 1,40,000 vehicles which puts us in a strong position to grow our share of the commercial vehicle industry in India.

Q. With the RDE rollout effective April 01, how are you keeping operating margins under check? To what extent is the customer passthrough inevitable?

A. The BSVI OBD II implementation will have the larger benefit of a cleaner environment and better public health. It will be helpful in reducing on-road emissions for all vehicles since OBD II norms call for emission compliance in actual field operating conditions alongside test labs. OBD I to OBD II emission threshold is tightened ensuring a lower emission level in actual operation. Additionally, In-service conformity and In-use Performance Ratio monitoring ensure that vehicles are monitored for up to six years for emission compliance. Implementation of OBD II norms bridges the gap in the automotive emission level of India with developed nations and strengthens India’s global commitment to a cleaner environment.

With this, there will be quite a few technological changes in the products, like the addition of physical and virtual sensors and their modeling. Additionally, robustness enhancement in components to meet desired emission compliance for six years will be required. This will require some price hike, however, it will be between three to five

per cent as against 10 per cent during stage-I of BSVI.

Q. Is there an addition to the base engines and or platforms?

A. With the implementation of stage 2 of BSVI norms, a vehicle will have to on board a self-diagnostic system to continuously track its driving emission levels. This device will keep an eye on the emissions by scrutinising catalytic converter emissions and oxygen sensors. This will eliminate the need for laboratory tests and vehicles can be diagnosed in the field. The transition would also involve changes in the hardware and software of the vehicles, including an upgrade in semiconductors.

Q. What are the key drivers of a price hike for the industry as a whole?

A. While the commodity prices are low right now, they are higher than the average range. Various automotive companies have been absorbing a significant portion of the increased costs, but the steep rise in overall input costs has compelled them to pass on some proportion through a minimal price hike. Another key driver is the implementation of stage-2 of BSVI norms; however, the hike is around three to five per cent depending on the model of the vehicle.

Q. Tell us about export aspirations on the truck and bus side. Like the recent foray of the pro-2000 series in the Middle East?

A. With the idea of adding to the government’s vision of ‘Make in India’ for the World, VECV vehicles have now been exported to over 40 countries across the Middle East, Africa, South Asia, ASEAN and LATAM. We have recently strengthened our presence in West Africa, East Africa, South Africa and

“Implementation of OBD II norms bridges the gap in the automotive emission level of India with developed nations and strengthens India’s global commitment to a cleaner environment.”

“While the commodity prices are low right now, they are higher than the average range. Various automotive companies have been absorbing a significant portion of the increased costs.”

the Middle East by introducing the Eicher Pro 2000 series trucks. The company would take care of these market’s logistics and transportation needs and aspires to play a more significant role in the growth of these geographies. The Eicher Pro 2000 series is a modern range of trucks tailored to the unique customer needs in these regions. Eicher Trucks and Buses will be supplying this new product range through their increasing network of channel partners in the Middle East and African region. We also entered into Latin America last year and going forward we would like to expand our territory to Peru, Panama, Paraguay, Columbia etc markets.

Q. What are the segment-wise TIV projections for FY24 as we start the fiscal with the previous industry peaks as the base?

A. The industry closed its books for FY23 on a fairly positive note, with sales of 474,117 vehicles marking a growth of 38.1 per cent compared to last year. However, this is still below the peak levels of 2018-19 when the TIV was 557,517 units. During the peak year (2018-19), the LMD sales were around 117,314 units whereas, this year we have touched a new peak of 118,325 units. As far as HD is concerned, it is growing year-on-year but still less than the peak levels. The segment has sold 247,858 units this year compared to 295,347 units sold in 2018-19. This indicates a huge growth potential.

Overall the bus industry is steadily moving towards the PreCovid-19 levels and finished the year at 62,601 units compared to 17,445 units for the previous year (Growth of 259 per cent). The LMD bus industry grew at a rate of 294 per cent and reached an all time high volume of 49,526 units (12,565 units in FY22). The HD bus industry also recovered well and grew at a rate of 168 per cent with a volume of 13,075 units (4,880 units in FY22). The industry is expected to carry the same momentum in the coming fiscal year with fresh impetus received from this year’s budget where government has laid great focus on pro-growth measures like 33 per cent increase in capital outlay with an effective provision of Rs.13.7 lakh crore, an outlay of 10 lakh crore for infrastructure development alongside 100 new projects for lastmile connectivity will further boost the CV industry. Removal of customs duties on imported capital goods used to make lithium-ion batteries will eventually help lower the cost of electric vehicles nationwide, encouraging the accessibility of EVs. The Outlay of Rs.19,700 crore for the national hydrogen mission is a step forward as we transition to green fuels by 2030 and strengthen the government’s commitment to becoming a low-carbon economy. Despite all the challenges India’s growth is expected to remain intact with GDP growth projections of around six per cent and therefore we expect the CV industry to continue growing at a similar pace as in FY23.

Q. A word on the CapEx allocation on priority focus areas on a per

centage and or real value terms?

A. CapEx is a regular activity for us, and we will allocate in line with what we have been allocating every year.

Q. How are you underlining safety from the perspective of the factory-built vehicle?

A. As a brand, we have always been cognisant of safety as a feature in all our vehicle ranges. We follow a stringent process to ensure quality products are aligned with all the safety norms laid by authorities.

Q. How are you aligning tyre manufacturers to your overall growth plans?

A. The supply chain issue coupled with the evolving demand from the automotive industry has put some pressure on tyre manufacturers. New regulations have been imposed on the noise front and rolling resistance. Additionally, India’s straight jump from BSIV to BSVI, compressing the emission norms life cycle, also posed challenges in the past. However, we have a super agile supply chain in place that has been supporting the business so far and will do the same in the coming future.

Q. How are you establishing yourself as a transport solutions provider?

A. Today, OEMs are not only producing vehicles but also playing various other roles. At VECV, we have been playing multiple roles to ensure at most satisfaction among the customers. In 2020, Eicher was the first CV OEM in India to offer 100 per cent connected vehicles with advanced telematics which provides enhanced fuel efficiency, superior uptime enabled by the industry-first Eicher Uptime Centre support, and segment-specific benefits such as enhanced logistical efficiency in e-commerce and

passenger safety in buses. Eicher’s MyEicher App - a comprehensive, ground-breaking next-generation telematics solution for effective fleet management, uptime services and predictive diagnostics, is now making fleet management easier for our customers and providing valuable coaching for Eicher truck and bus drivers. With these solutions we ensure that each vehicle’s uptime, productivity and efficiency is maximised which is leading to reduction in the carbon footprints of our vehicles.

Q. Are the subsidised and wet lease models in the case of buses sustainable?

A. The wet leasing model, in the case of electric buses, is a great way to promote the electrification of the industry. Recently, VECV won a tender in Chandigarh, where we deployed 40 Eicher Skyline Pro-E buses that are running successfully on the roads today.

While we wholeheartedly support the government’s GCC model, there is a need for a payment insurance/ securitisation scheme to ensure timely payment for the OEMs.

Q. A word on the latest government interventions with a direct bearing on the CV ecosystem?

A. The government has played a vital role in helping the industry achieve the above figures. Various policies and initiatives like Gati Shakti Mission, and the PLI scheme have given great impetus to the industry. However, the government’s enhanced focus on the infrastructure and construction segment on the back of multiple national road and highway projects has been one of the vital

drivers of this growth. The recent budget presented by the government is growth-oriented and leads to green and sustainable mobility. The government plans to make a capital investment of Rs.35,000 crore to prioritise energy transition and net zero objectives and energy security. There is also a great focus on Hydrogen as a fuel, and during the budget, Rs.19,700 crore was also allocated towards the National Green Hydrogen Mission, an initiative focused on promoting the usage of Hydrogen as a renewable and clean energy source. With initiatives like these, we are confident and optimistic that the CV industry will soon reach its peak level. ACI

“The industry closed its books for FY23 on a fairly positive note, with sales of 474,117 vehicles marking a growth of 38.1 per cent compared to last year. However, this is still below the peak levels of 2018-19 when the TIV was 557,517 units.”

Entered FY24 With A Strong Momentum

Q. The fiscal year has changed. In hindsight, how was FY23 For Ashok Leyland?

A. FY23 has been a remarkable year for us in every which way. If you look at our market share, we have been able to increase the M&HCV market share by over five per cent. Even in our other business segments, whether it is L&ICV or the Defence segment, we have done well. So, overall, it has been a very wholesome performance not just in product segments or business units, but even geographically. In the north and east, we have been traditionally weaker than in the south and west, despite that in the north and east, we have been able to increase our market penetration very well in FY23. Another focus area for us has been profitability. We started our mission on cost last year and have created some wonderful results even in cost compression. Overall, you have seen up to the third quarter (Q3-FY23), our profitability has improved quite a lot. We hope to continue that momentum in order as well as going forward. The performance has been wholesome as an organisation and the year was one of the best in the last few years.

Q. If you could further break down the performance from a supply and demand standpoint?

A. On the demand side, we have had good takeaways from the overall industry or the macroeconomic environment. Most of the sectors that affect us, including the overall economy, and overall GDP have

been very bullish last year. While the M&HCV segment has grown by 40 per cent plus, Ashok Leyland has been able to grow by about 70 per cent plus. So, we have grown better than the industry. And that is why we have been able to increase our penetration, in the markets, whether it is south or north or east. In all those zones, we have increased the market share considerably. On the supply side, we have posted our highest-ever sales volumes including all segments. While there were challenges on the supply side from time to time, I don’t think we have lost any sales at all. Our operations team has scrambled quite a lot. Because many times this industry movement was kind of unexpected. We were not hoping at the beginning of the year that the industry would go as high as 40 per cent plus but when the industry started moving in the right direction, we got to manage our supply chains well and cater to that demand. So from both the supply side and demand side, I think we have had a good year.

Q. Speaking on a segment-wise basis, how have you grown vis-a-vis the TIV?

A. M&HCV is our largest business. That market has grown by about 40 per cent plus, I think the exact number is ~44 per cent. As I pointed out above, Ashok Leyland has grown beyond 70 per cent. So, that is the kind of jump we have had over the industry that resulted in a five per cent increase in our market share.

In an Upfront Conversation session, Shenu Agarwal, Managing Director and Chief Executive Officer, Ashok Leyland spoke to Ashish Bhatia on entering the new fiscal year with a strong momentum.

@atashishbhatia

Ashish Bhatia

we are back to 30 per cent plus levels on the M&HCV market share. Other segments including power solutions, defence or international operations also did well. International relations particularly were not supported by the market movement as much because we

“Overall, as you have seen up to the third quarter (Q3-FY23), our profitability has improved quite a lot. We hope to continue that momentum in order as well as going forward.”

of the South Asian Association for Regional Cooperation (SAARC). Especially because of the overall macroeconomic conditions prevailing there. Nepal, Bangladesh, Sri Lanka, all of those. But I think despite all of that, while the exports industry took a nosedive, especially in the last six months, our export performance was good. We registered a small growth in FY23 over the FY22 numbers, while our peers registered

overall, you know, the satisfaction from international operations is that we have grown despite all these headwinds in some of these markets. As the market starts to appear, we should be able to register good volumes.

Q. A word on the growing trend of contract manufacturing. Any such developments and partnerships at Ashok Leyland?

A. Our thinking is contrary to this. Ashok Leyland has the right resources and capability and also the structure to in source a lot of activities. Or in other words, I would say that

some of these activities which we have not been doing so far or have not focused on, we want to focus on those as well. We are looking at subsidiary companies, which are focused entirely on bodybuilding for example. Right now, mainly around the buses, we have one company called BPCL out of Alwar, and we have another company called GTVS. We want to see how we can get more business into these companies. Not just through bodybuilding but also through other load bodies. We are contemplating that idea, and are not looking at outsourcing these at all. It’s not just because we want to generate more revenue or more margins out of this, but it’s also a factor in customer demand.

I have been on the field over the last few weeks meeting a lot of customers. All of these customers, they don’t want to get into bodybuilding themselves. They don’t want to get into partnerships with other bodybuilders as well where they are required to keep their chassis for several weeks or months. They want to be supplied by Ashok Leyland because it makes it very simple for them. In another trend, a lot of these fleet owners, especially the large ones, used to have their workshops. Now, they are, I think, realising that having their own workshop is making their business very complex. I think they are realising that they need to focus more on getting more customers or clients and on managing the operations of their fleets. That is what they need to focus on and maintenance of the trucks is something that they should not focus on. These are the changes we are seeing in the way that customers are thinking.

Q. Are you banking on the segments that have done well in the last fiscal to carry the momentum into the next fiscal as well?

A. This is the first year of this positive cycle. I’ve met a lot of people. People tell me that this positive cycle normally goes on for two to three years in the CV industry. Having met customers and having looked at the pulse on the ground, I think this could be a longish positive cycle. I don’t see anything that is going to hinder the momentum that we have right now in the CV industry. The pace of growth may not be as much because the base effect may go away. I think this growth momentum will continue in FY24.

Q. Which segment are you most optimistic about in FY24?

A. I think growth would happen both at the bottom and top. So while on one side, the tonnage as we have seen in FY23, the tonnage per vehicle will continue to increase. So

we are seeing a lot of momentum in favour of the higher tonnage vehicles. Whether it is a prime mover or tractor trailers, or even MAVs. I think the same is true for the bottom end of the market, the ICV market is also going to do well. Similarly, buses are going to see a lot of positive momentum. There’s a lot of pent-up demand that is left to be addressed. That market is also going to do well. In the case of LCV, we are a little bit more conservative just for FY24. I think over the long term, I’m very optimistic about the LCV business but just for FY24, it might see a lower growth rate as compared to M&HCV. But it will still be positive growth. It could be in the mid single-digit range.

“While the M&HCV segment has grown by 40 per cent plus, Ashok Leyland has been able to grow by about 70 per cent plus.”

Q. Any takeaways from last year’s micro and macroeconomic perspective that could have a direct bearing on the outcomes of FY24?

A. The only thing which might hurt the industry is that we are hearing some reports about the El Nino effect. I don’t think it will have a more significant impact on M&HCVs but on LCVs, it might have a small impact. And that is why our forecast on LCVs is slightly more conservative than on M&HCVs. I think we have already

seen the geopolitical situation, with the Russia-Ukraine geopolitical issues panning out the way they did. I think the worse is behind us and won’t impact the market. On the diesel price side or the crude oil price side, the recent calls taken by OPEC might have

some impact but not a major one. I can’t think of anything else really that would pull the market down in FY24. I think everything else, whether it is the infrastructure spending, whether it is the

“Having met customers and having looked at the pulse on the ground, I think this could be a longish positive cycle. I don’t see anything that is going to hinder the momentum that we have right now in the CV industry.”

government, whether it is the update in investments, we are sensing a positive growth cycle.

Q. With the RDE norms rolled out, the bone of contention for everybody was to try and avoid a pass-through for the customer. What has been the strategy at Ashok Leyland?

A. We do recognise that there are challenges in the market. And therefore, I mean, pricing is not a game we want to associate with. We do hope that our peers, especially the leader in the industry, goes ahead with some scale of a price increase to offset this impact on the cost. And then we will just follow.

Q. Do you also expect it to have a direct bearing on fresh demand, at least from a near to mediumterm perspective, as we saw in the transition from BSIV to BSVI?

A. No, I think the momentum in the market is so strong, as I mentioned, I have met a lot of customers in the past few weeks in the northeast and central India, and I think this will not have any bearing on the demand. The speculation around price hikes and the pre-buying might result in a blip for a few weeks, just to accommodate for that pre-buying. Overall, I think we will have a very healthy quarter in terms of demand.

Q. You showcased a range of products at Auto Expo 2023. How

have those plans fructified from the last time we met?

A. As you know, all those were concept vehicles, right. We are some distance away from getting those to the market. So, we are working on maturing all those concepts, all those technologies. I intend to be a challenger; the intent is always to go to the market first and take that advantage because these are the times when we can do something different to align with the change. So, there is a huge amount of focus, a huge amount of investment and resource allocation that we are doing on these new technologies. Post Auto Expo 2023 what we have also started doing is trying to talk very seriously to some of our customers, some of the large fleet operators. Some corporations are very keen on the adoption of these technologies. We are spotting those early adopters in the market and carrying out some serious rounds of discussions with them and create some use cases of these technologies. These technologies would go through our adoption cycle, it will not just be a straight ride to the market. So, we are

trying to take the lead and trying to create those partnerships within the ecosystem. So that all the partners can come together, whether it is a customer or a weaker OEM or a fuel supplier, etc, they can come together and they can prove that this thing can

work. So, that is our intent and that is our focus going forward. And this year, of course, we will continue to mature the technology and bring the technology to the level of commerce. At the same time, we want to focus on the market side now and start meeting that demand and that pull.

To meet that demand and pull we are also working on optimising capacity utilisation and augmentation. So as far as the traditional business like the diesel and petrol business is concerned, we have enough capacity to last for two or three more years. Depending, I mean, in line with our business plans, of course, there are small niggles that we have to take care of which will require small balancing. The capacity will not involve a huge amount of CapEx or investments. Now in the case of the new businesses on the alternative fuels side, of course, our first attempt is to create some of these use cases. So we can put some of these vehicles out in the market in actual conditions, and make sure that

“Some corporations are very keen on the adoption of these technologies. We are spotting those early adopters in the market and carrying out some serious rounds of discussions with them and create some use cases of these technologies.”

“On the diesel price side or the crude oil price side, the recent calls taken by OPEC might have some impact but not a major one.”

not just the technology behind these vehicles, but also the entire ecosystem is put in place. That will be the focus going forward at least for the next few quarters. After that, once we have a better idea of the sizing of the market and the timing of the market, we would invest in building capacities around alternative fuels as well.

Q. What is your take on this whole shift of OEMs looking to turn into transport solution providers? The wet leasing model seems to be the flavour of the day, do you think a lot rests on the contractor responsible for the execution and in turn the success of that particular GCC agreement?

A. You’re right. It is a very exciting model. If we can get the model right, for all the stakeholders, it can transform the shape and form of public transport, at least in the country. I’m not saying it cannot go into private fleet operators, it can potentially go there as well. We are in the process. We did not want to just sit on the fence and watch this model, we wanted to participate in it. Unless you participate, it’s hard to learn and improve the model. There are three components that we have to get right. One is that companies like ours have to learn how to operate these buses correctly. There is this operating model that we have to master, we have to learn.

We have already created a structure. Ashok Leyland created this company called OHM Global Mobility, which is focused on e-mobility solutions, wherein we are operating a few 100 buses in the country.

There are more orders in the pipeline that they are negotiating with the various STUs. And the whole idea is to have an entity like that, who kind of masters that particular part, which is the operating part. The other part is the balance sheet part, where instead of the customer, now the OEM itself is required to hold the asset on the balance sheet. And I think Ashok Leyland has enough capacity to do that. So we are not too worried about that aspect. At some point in time, if the business becomes bigger, and we have to raise funds, I think that capability also rests with us. Our debt-equity situation is very healthy. The critical part is the cash flow part.

Now, all these GCC models expect you to take a cash flow risk running up to 10 or 12 years. So while you can, you assure the customer that you can operate the bus and you can take the asset on your balance sheet. However, there must be some kind of assurance on the cash flow that has to be there for this whole model to be successful. I think it’s like I said, a very exciting model. We have covered or provided answers for at least two-thirds of the whole model. I think there’s one part which is the cash flow part, we still have to find the right answer.

Q. You mentioned that this could apply to a private fleet operator. Do you see it in the foreseeable future applying to trucks at least to the lower end of the segment?

A. I think if this model gets extended, the large fleet operators with M&HCV trucks, it could be the next opportunity for this model. I have spoken to a lot of fleet customers, and some of them are telling me that the demand is so high right now in the market that they can go much more aggressive on their fleet

additions. Their balance sheets are not supporting the kind of momentum that the market requires. Therefore some of these fleet owners, not everyone, but some of the large ones, with very large balance sheets are looking at options on the lines. If somebody else can take it on their balance sheet, they would like to operate the fleet themselves, unlike the STUs in the case of the buses. They would also provide a cash flow which is better than what the STUs are providing.

They don’t want to stretch it to 10 or 12 years, they are saying if you can provide a solution, which can go to five or six years, they would be more than keen to consider the model. So of course, this is a very early stage and we still have to find a lot of answers. From an Ashok Leyland perspective, we are very willing to experiment with something like this, as long as we can get into good partnerships with some financial institutions, and also with some large fleet operators.

Q. How are you looking to enhance non-core revenue streams?

A. Ashok Leyland is looking to diversify quite a lot. 10 years ago we were just an M&HCV player and then we got into the LCV space. Then entered the ICV space. The focus extend to the parts business that has quadrupled. Then the focus on services, the delaership workshops business also took off. The power solutions business and the defence business is the same core of Ashok Leyland but offshoots as largely unrelated to the M&HCV business. There is a whole lot of potential on customer services business like Re-AL. Similarly the telematics programme under iAlert. It is taking a significant mass with every CV shipped out with it. We are looking to leverage it as a huge value proposition for the customer. This will continue to be a focus area going forward. ACI

“Now in the case of the new businesses on the alternative fuels side, of course, our first attempt is to create some of these use cases.”

Cover Story

New Cooling Solutions

The engine cooling system market alone is projected to grow from USD 34.1 bn in 2023 to USD 49.7 bn by 2032. It translates to a Compound Annual Growth Rate (CAGR) of 4.8 per cent. Critical to the engine performance in this case, it is known to rely on the pumping coolant liquid. This is largely a case of water combined with an antifreeze solution that relies on unique cooling tubes. In certain cases, the air passes across cylinder casings with fins. Besides the implied heat elimination, it offers optimal operational temperature. These cooling systems take a whole new dimension in natural gas vehicles and electric vehicles. Visteon Corporation, Mahle GmbH, BorgWarner, Calsonic Kansei Corporation, Continental AG, Valeo SA, Delphi Automotive LLP, Denso Corporation, Sogefi, Schaeffler Group, Perkins Engines Company Ltd. among others are prominent players in the cooling systems domain.

New products

The objective goes beyond thermal management in today’s time. As emission compliances are strictly enforced with BSVI phase two (RDE) in India and the world contemplates the move to Euro7 levels, this is a focus area with plenty of resource allocation. After all, improvements in cooling systems have a direct impact on particulate emissions like NOx and CO. The growing focus on power-to-weight ratios driven by efforts to lightweight is resulting in sophisticated modules being developed. All of it without compromising the performance metrics of the engine or the battery pack. Reduced tailpipe emissions, and reduced parasitic engine load.

The matrix through multiple variants, for instance, bifuel vehicles on one hand has added to the complexity of the engineering, and on the other hand, opened up a plethora of opportunities to be tapped into for growth by the aforementioned players. The new breed of cooling systems has to be both efficient and refined to meet the performance requirements. The approach goes beyond regulations. As per Rajendra Petkar, Chief Technology Officer at Tata Motors,“There are several tests which are supposed to be done when it comes to the battery-electric vehicle. Tests are done at a component level like a battery or the BMS, and there are certain tests which are done as a part of the full vehicle. And the test includes the net penetration test, which is to check, whether there are going to be any thermal incidents, due to overcharging, and discharging through the vibration test.”

Be it ICE or EVs, cooling solutions are vital for vehicle operations.

Ashish Bhatia looks at the advancements made for both OE and aftermarket segments.

@atashishbhatia

Ashish Bhatia

In the aftermarket, it is anticipated that motor cooling fans will climb the ladder of popularity. In the lubes category, Lumax Auto Technologies Ltd. (LATL), has launched a lubricant and coolants portfolio for all vehicle segments. The all-weather coolants will be sold under the ‘Smart Cool,’ ‘Ultra

Cover Story

and Supreme Cool is crafted for extremely cold weather conditions. The engine oil Ultra range uses mineral base oil and is designed to enhance power, performance and pick-up with a Group 2 base oil blend; and the ‘Supreme’ range, uses synthetic oil blended with Group 3 base oil and high-tech additives imported from the US.

Cool,’ and antifreeze ‘Supreme Cool’ range. While Smart Cool is suitable for tropical weather conditions, Ultra Cool is suitable for all weather conditions

The Grade 2 and 3 mineral oils are claimed to reduce exhaust emission levels and enhance engine life. Lumax will make these available across the 25,000 retail partners and distribute through a strong market network of over 340 channel partners of the After Market Division (AMD) of LATL. The aftermarket division of Lumax-DK Jain group is targeting to double its turnover through continuous product expansion, and this introduction is in line with this strategic intent. Sanjay Bhagat, Sr. EVP - Head Aftermarket Division - Lumax Auto Technologies in a company release states, “Positive market sentiment has given us the impetus to invest in future to deliver best-in-class products. With a long-standing relationship and strong presence in the Indian market, we are committed to strengthening the B2C offering to our customers and lubricants and coolants were obvious choices.”

Rajendra Petkar, Chief Technology Officer at Tata Motors Ltd.

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Driving investments

Liqui Moly announced the expansion of its EV product portfolio for vehicles with Battery Coolant EV 200. The new Battery Coolant EV 200, acts as a thermal manager. The range between 15-40-degree Centigrade is ideal for lithium-ion batteries. “Thermal management is extremely important because it has an impact on the range,” states David Kaiser, Head of R&D at Liqui Moly. With the thermal management system, a distinction is made between direct and indirect battery cooling. This indirect system is more complex, as the vehicle batteries are becoming increasingly powerful and therefore significantly hotter.

The investments will be dictated by the call to reduce diesel and gasoline engines as the transition takes place. In recent times, resource allocation has ensured the development of liquid cooling systems, catering to high-performance bikes on the lower end of the spectrum and commercial vehicles on the upper end. The liquid-cooled solutions category is expected to dominate the revenue shares. Going forward, it is also expected to witness technical advancements. Liquid coolants are used in internal combustion engines in cars to control heat. The fluid stops the cooling system from degrading by eliminating the engine’s surplus heat and minimizing long-term harm to the motor. In the upcoming years, it is also projected that technical developments made by important players in the liquidcooled engine would lead to abundant growth prospects.

Asia-Pacific is said to be a leading market, globally. It could well drive the demand expected to remain during the period of projection. The cyclical upturn and the growing impetus on higher compliances in India and China will be the drivers of this demand. While India registers a quick growth rate, China is known to dominate the market share after Europe known to command the second-largest market share for

automotive engine cooling systems. The critics of Euro7 are known to oppose the mandate owing to the cost-benefit analysis that is claimed to have led to the realisation of a disproportionate spend required offering a lower value addition for the stakeholders involved. Despite being deemed in recession, the German automotive engine cooling system market is expected to significantly contribute over the long term. On the emobility front, the UK could well have a large-scale local battery manufacturing plant if the recent speculations come good. This could be a boost for large scale localisation of new cooling solutions. ACI

David Kaiser, Head of R&D at Liqui Moly

Sanjay Bhagat, Sr. EVP - Head Aftermarket Division, Lumax Auto Technologies

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Cooler e-LCVs S

Switch Mobility forayed into e-LCVs

witch Mobility was aptly stationed alongside the Ashok Leyland booth at the Auto Expo 2023 - The Motor Show. The company, as hinted earlier during its electric bus launches in 2022, came good on the time line of its intended electric Light Commercial Vehicles (e-LCV) foray. The e-LCV segment is the other priority segment after electric buses for Switch. Having given a sneak peek at the work underway on previous occasions, the power train modularities for e-LCVs fructified. The Switch ion platform also underpins the bus range, from the Switch EiV 9 Standard to the ultra-low floor Switch EiV 12 up to the double-decker Switch EiV 22, most recently in the news for deliveries in India to STUs like BEST in Maharashtra and BMTC in Bengaluru besides the most recent transportation of the G20 delegates. The products have also entered Chandigarh, Patna and Ahmedabad.

Drawing on its Ashok Leyland and Optare DNA, the LCV foray is a testimony to the flexibility and the go-to-market agility at our disposal, and an outcome of a journey that began a decade ago, averred Dheeraj Hinduja, Executive Chairman at the company. He said, “It is when we positioned an all-electric bus in the UK a decade ago when the industry, globally, was uncertain about the future of electric vehicles.” “We are fortunate to have Optare in the UK with the proven track record in electric vehicles and Ashok Leyland with its rich market presence, brand equity and above all the rich history of product introductions,” he expressed.

With capabilities to tap into both value and premium segments, globally with its presence in India, the UK and Spain, the company is banking on low-cost engineering

as hinted at earlier.

Ashish Bhatia looks at the cooler, modular architecture driving the green mobility strategy, afresh.

@atashishbhatia Ashish Bhatia

support from the India base, the added advantage for the company as per Hinduja. He drew attention to the addressable EV market opportunity in buses, estimated at a “conservative” USD 16 bn by 2030 as per McKinsey studies with a volume of over 42,000 units. Here, the company as per Hinduja, expects the LCV business to be USD 55 bn with a volume of over 420,000 units implying a large market potential for the future growth of Switch. The progress is largely dictated by high battery prices and federal ground, and the momentum has picked up. Hinduja drew attention to the high acquisition costs being addressed by Emobility-as-a-Service (EmaaS) through Switch’s subsidiary company, Ohm Global Mobility, vehicle subscriptions, and Battery as a Service (BaaS) options among Value-Added Services (VAS) for an end-to-end connected EV fleet management system.

While the field may be open for multiple players, the company would like to focus on a profitable and sustainable

basis with its innovative products and solutions aimed at offering the lowest Total Cost of Ownership (TCO). The latter is achieved through lightweighting, modularity, best-in-class battery packs and state-of-the-art digital adaptation. In line with a global strategy, the company has expanded to nine sites across three countries. It is looking forward to entering new markets in the near term. Backed by the Sterling Pound 300 mn, a recent investment, a new technical centre in Warwick, in the UK and the new office in Chennai with ~4000 employees.

The company is confident of the government’s impetus on infrastructure fuelling the growth of the CV segment where Switch has the right mix of

products in both the e-bus and the e-LCV range. The company hopes to launch the showcased e-LCVs soon.

Going deeper, Mahesh Babu, Chief Executive Officer at the company took the press gathering through the new range that marked the e-LCV foray in cargo and people mover categories. The iEV series had the company display the GVW 2.6-tonne (2620 kg) e-LCV truck. The truck offers a volume load of 250 Cu. ft. with a ~150 km range (non-AC) at a 70 kmph speed limit. It draws its power from a motor that has a peak rated power of 40 kW. Babu cited the cornerstone of this development as being the customer needs that have evolved. Today’s fleet operator needs an efficient fleet management system,

Mahesh Babu, CEO, Switch Mobility Ltd., with the EiV 7 configured to meet the demanding needs of the urban community.

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on a vehicle that’s both modular and intelligent. Like in the case of Switch buses, the platform will be used to shape up multiple cargo models that will be more voluminous over weighing heavier. Through the new range, the company will offer best-in-class payload, range and TAT that is backed by reliability. It will span a spectrum from upwards of 1.2-4.5 tonnes.

Drawing attention to the EV industry in India growing to 10 mn units in 2022, he mentioned, “The e-bus market is going to double this year and is expected to triple in the next fiscal. The e-bus market is expected to grow 10x in the next five years. The order book at Switch is a testimony of the company growing over the industry average.”

In India, Babu pegged the bus industry at ~85,000 units for five-metre to 12m buses. Here the nine-metre to 10m buses are estimated to be around 40,000 units, he said. The company expects EVs to attain ~50 per cent of that volume in the next decade for which the company is gearing up. Laying further context, he added that the company had its first e-bus ready over eight years back with work on EVs underway a decade back. The company boasts of a global footprint, with 750 employees with a ~300-member strong R&D team and ~300 buses running across the globe having clocked ~50 mn kilometres. Using data, the company has optimised its products. In line with its objective to “democratise carbon mobility”, the

company wants to make EVs more accessible.

In a further expansion of its bus portfolio, the Switch EiV 7 bus unveil is aimed at last-mile mobility. Unveiled by Nitin Gadkari, Minister of Road Transport and Highways of India, the latest addition to the EiV series, is claimed to have been uniquely configured to meet the demanding needs of the urban community such as last-mile connectivity through metro feeders and smart commute for staff and school applications besides as campus shuttles. Babu claimed, “In the Indian electric bus market, private operators are showing keen interest, given the lower total cost of operations and sustainability commitments.” He explained that the EiV 7 is built on an advanced architecture, contributing to enhanced operational efficiency and superior performance. The 650V architecture for India is at par with its EU solution, he exclaimed.

The bus brings along customercentric technology and passenger comfort with a low floor, luxurious seating, in-vehicle connectivity and a superior ride quality. Powered by the new generation, modular batteries with advanced NMC chemistry, specially formulated for the Indian market and climatic conditions, the bus is known to be embedded with proprietary technology solutions of Switch iON that

enables remote, real-time diagnostics and monitoring. With Switch iON, the company has introduced features like satellite tracking, charging tracker, and OTA updates among uptime solutions including ADAS and Driver Dashboard as a bundled suite offering around 100 plus features for diagnostic and prognostic needs. With an assurance of best-in-class TCO, it can clock 250 kms with a dual charging gun. For the charging ecosystem, the company has partners in Duosida and Seimens for multiple configurations. It is claimed to charge 0-80 per cent in under an hour. In an hour and a half, the architecture facilitates a top-up of 300 kms in intercity applications. Powered by Dana’s globally competent technology

of 235 kW and a 3000+ Nm torque, the company can offer nine-and 12m buses too.

The battery pack is claimed to be 30 per cent lighter than the competition and offers high energy density. With a claimed ~4000 cycles plus life, the company is offering eight years warranty to back the claim. These packs are configurable upwards of 110 kW to 460 kW with a two-speed thermal management system. Safety is enhanced with a three-layer (module, battery and string level) including vehicle level components with a (-) five degrees to 55 degrees. Using data analytic and mining, with the capability of collecting close to two terabytes of data. The company has attained ~18 per cent energy efficiency

in a tangible outcome as per Babu. The company also showcased an open-top, hop-on hop-off tourist application for the intra-city segment on the Switch EiV 22. Carrying forward the wide front and rear doors, two staircases, and an emergency door complying with the latest safety standards, the bus optimised to seat 65 passengers is powered by a 231 kWh capacity, two-string, liquid-cooled, higher density NMC chemistry battery pack also with a dual gun charging system. It boasts a 250 km range for intra-city applications. The nextgeneration, modular architecture, and thermally optimised, superior technology has enabled Switch to attain both scale and customer-centricity. ACI

The proprietary technology solutions of Switch iON that enables remote, real-time diagnostics and monitoring.

New Assessment and Testing Methodology for Vehicle Type Approval - Part

The following is the third of a three-part series produced by Carlos Lujan Tutusaus, Senior Manager of Homologation, Commercial Vehicles, Automated Driving and Vehicle Dynamics in Applus IDIADA and Oriol Flix Viñas, Homologation Engineer, Commercial Vehicles, Automated Driving & Vehicle Dynamics in Applus IDIADA.

T

3

his article describes the main future trends in the new assessment and testing methodologies for the type-approval of vehicles and their systems. The first part of the article introduced the context, as well as the challenge of automated vehicle type approval; the second part, on the other hand, presented the rule making structure.

VMAD and the new Assessment and Testing Methodologies

As stated in the previous section of this article, one of the topics of the safety vision of the framework document is the validation for system safety. As it was earlier introduced, the automated and autonomous technologies require a new approach to the validation methodology, different from the classical tests for a prototype under repeatable conditions. The seed for this new technology is the “three pillar approach”, first introduced in the GRVA discussions upon an initiative from OICA.

According to this approach, the use of different tools is required to guarantee the safe market introduction of automated and autonomous vehicles:

a) Audit/assessment:

n Understand the system to be certified.

n Assess that the applied processes and design/test methods for the overall system development (HW and SW) are effective, complete and consistent.

Carlos Lujan Tutusaus

Oriol Flix Viñas

n Assess the system’s strategies, test performance to address (multiple) fault conditions and disturbances due to deteriorating external influences; vehicle behaviour in variations of critical scenarios.

n Simulation: Test parameter variations (e.g. distances, speeds) of scenarios and edge cases that are difficult to test entirely on a test track.

b) Physical Certification Tests:

n Assess critical scenarios that are technically difficult for the system to cope with, have a high injury severity (in case the system would not cope with such a scenario) and are representative of real traffic.

n Compare with critical test cases derived from simulation and validate simulation tools.

c) Real World Test Drive:

n Assess the overall system capabilities and behaviour in non simulated traffic on public roads and show that the system has not been optimised on specific test scenarios. n Assess system safety requirements like HMI and ODD.

n Assess that the system achieves a performance comparable to an experienced driver.

The multi- pillar approach has been further developed under the work frame of VMAD, being renamed as New Assessment and Testing Methods (NATM). For such purpose, an additional level of subgroups, dealing with different specific topics was also created (figure 4):

During the 12th Session of GRVA (January 2022), VMAD presented a proposal for a second iteration of the Master Document on NATM [3],

which defines the principles of such methodology based on five pillars:

1. Simulation/virtual Testing

It uses different types of simulation tool chains to assess the compliance of an ADS with the safety requirements on a wide range of virtual scenarios including some which would be extremely difficult if not impossible to test in real-world settings. The aspect of credibility of simulation/virtual testing is included in this topic.

2. Track testing

It uses a closed-access testing ground with various scenario elements to test the capabilities and functioning of an ADS.

3. Real-world testing

It uses public roads to test and evaluate the performance of ADS related to its capacity to drive in real traffic conditions.

4. Audit/assessment procedures

They establish how manufacturers will be required to demonstrate to safety authorities using documentation, their simulation, test-track, and/or real-world testing of the capabilities of an

ADS. The audit will validate that hazards and risks relevant to the system have been identified and consistent safety-by-design concept has been put in place. The audit will also verify that robust processes/mechanisms/strategies (i.e., the safety management system) are in place to ensure the ADS meets the relevant safety requirements throughout the vehicle life cycle. It shall also assess the complementarity between the different pillars of the assessment and the overall scenario coverage.

5. In-service monitoring and reporting

It addresses the in-service safety of the ADS after its placing in the market. It relies on the collection of fleet data in the field to assess whether the ADS continues to be safe when operated on the road. This data collection can also be used to fuel the common scenario database with new scenarios from the field and to allow the whole ADS community to learn from major ADS accidents/incidents. To guarantee the efficiency of those pillars, they need to be supported by a scenario catalogue, descriptions of real-world driving

Figure 4 VMAD subgroups

Globescan

situations that may occur during a given trip, will be a tool used by the NATM-pillars to validate the safety of an ADS. This new approach leads consequently to a change in the interaction between technical services and vehicle manufacturers. As per the traditional approach (figure 01), it was limited to very late stages of the process, once the vehicle or system had already been validated by the manufacturer. However, the new approach requires the type-approval process to be started way in advance, so that the development methodology can be evaluated before the vehicle is ready to be assessed. (figure 5).

NATM vs Other Methodologies

Type approval of vehicles and systems is normally the latest step in the life cycle of vehicle development. Previously, the manufacturer may have performed its internal validation tests, to guarantee the safety of the vehicle, but also some aspects which are not part of the areas of interest of typeapproval, such as the feeling or the comfort of the vehicle.

This may have led to different approaches to the testing and assessment methods, depending on the stage of development of the vehicle. However, there is a

trend for the harmonization of such methods, and it is becoming frequent for manufacturers to use a similar approach for the validation of their vehicles. Additionally, other evaluation frameworks, like EuroNCAP are introducing similar methodologies. Efforts for harmonisation of these methodologies can also be found in EU-funded projects like HEADSTART, which aimed to define testing and validation procedures of connected and automated driving functions including key technologies such as communications, cyber-security and positioning. The tests will be in both simulation and real-world fields to validate safety and security performance according to the key users’ needs.

Those key users included:

a) Type-approval rule makers

n New CAV type-approval regulation

n CAV safe market introduction

n Digital driving license

b) EuroNCAP

n New official assessment protocols

n User Acceptance

n Safety-aware sales growth

c) Vehicle manufacturers

n New development strategies

n New CAV functions enabler

n Cost and time-to-market reduction

6. Conclusion

The introduction of automated vehicle technologies introduces a series of challenges to vehicle industry stakeholders, and type approval is an important one. Guaranteeing that a vehicle is safe to be placed in the market is essential, but it shall be balanced with a certain flexibility to allow the market introduction pragmatically and costeffectively. The use of innovative methodologies is thus required, as the traditional methods have proven not to be valid for vehicles able to perform dynamic driving tasks on their own. Rule making forums have already stepped forward and developed an innovative methodology that will allow the type-approval of those vehicles, but as a side-effect, all the involved stakeholders will need to adapt themselves to the new tools, period and methods introduced by NATM. Finally, there is also a clear trend for harmonisation of the validation methodology in the automotive industry, which reflects the effort to optimise resources and time. ACI

With over 25 years of experience and 2,450 engineers specialising in vehicle development, Applus IDIADA is a leading engineering company providing design, testing, engineering, and homologation services to the automotive industry worldwide. Applus IDIADA is in California and Michigan, with further presence in 25 other countries, primarily in Europe and Asia. The article is part of a content-syndication arrangement with the Brake Report.

Figure

5 Description of the application of NATM within the vehicle life-cycle

Ashish Misra Dy. General Manager HR at JK Tyre & Industries Ltd.

Manshi Chndarana Co-Founder & CFO, KwikFix Auto

Sanskar Jha New Delhi

Aashwiin Heegde Bengaluru

Solanki Gaurav Jodhpur

Deepak Patil Pune