COMMERCIAL VEHICLE INDIA FEBRUARY 2022 by Next Gen Publishing Pvt Ltd

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In Your Best Interest

With businesses expanding trade more aggressively, to differentiate themselves from competition, it has also become increasingly challenging to adopt a hyper local strategy while maintaining a standard brand ethos across markets.

he past month with all the action around budgetary allocations elicited different reactions from different quarters of the industry. However, a majority of you hailed the long-term growth outlook and a degree of consistency in the focus areas expected to dictate the road map. It will be an interesting few quarters to gauge the implementation, on ground, and consumption capacity on the demand-side in the absence of the so-called direct, populist measures. Fair, trade practices and brand ethos also kept us occupied month long. The Competition Commission of India was forced to intervene on more than one occasion to flag unfair trade practices. From dealing with ancillaries to dealing with Unions, it’s been a busy month. Hopefully, it is enough to deter such reoccurrences threatening an otherwise healthy business environment! One that creates a pull and is not reliant on a push alone. With businesses expanding trade more aggressively to differentiate themselves from competition, it has also become increasingly challenging to adopt a hyper local strategy while maintaining a standard brand ethos across markets. What does the brand stand for in one market vis-a-vis another, given the distinctiveness of beliefs varying from one region to another? Whatever may be your answer, it’s in your best interest to learn and grow from life lessons. To end with, I also take this opportunity to remind you, to share your entries for the Apollo CV Awards 2022, in time. More details at the end of the issue for your ready reference. Ashish Bhatia ashish@atashishbhatia.com a.bhatia@nextgenpublishing.net

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Rajesh Gogate (Mumbai)

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This Month In CV

FEBRUARY 2022

Cover story

THE BOTTOMLINE Ashish Bhatia

Tabled For Long-Term Growth The Union Budget 2022-23 surprised a section with its focus on long-term growth. Ashish Bhatia looks at the allocations and implications for the commercial vehicles segment.

NEWS  115 companies file for PLI  ARAI celebrates GoI initiatives  Foreign Trade  M&M’s new value proposition  Mahindra e-Alfa Cargo  ALL and Aidrivers partner for autonomous vehicles  Switch Mobility’s new manufacturing and technology centre  Tata Motors buoyant on CNG  OSM MoU with Jae Sung Tech

Write to us at cvonline@nextgenpublishing.net with your feedback and suggestions or visit us at www.commercialvehicle.in to access the digital first content.

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Hilux For Commercial Use: The Toyota Hilux heats up the pickup segment in India.

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Adani Group interests ZF India picks majority stake Apollo Tyres secures green power Samir Gupta is MD Continental Tires ETO Motors builds charging infra JBM targets localisation of EVs SANY partners with COAOI Motorhomes by Pinnacle Industries Group Landmark collaborates with BYD Purple Group Founder passes away ADVIK partners with H2X New appointment at Ecom Express Bengaluru to get 1,500 e-buses Sustainability 4.0 awards ZF CV solutions First airport with wireless charging Škoda E’CITY starts city trails

with

Rooting For Safe Intercity Bus Travel gogoBus is cracking realworld issues in the sphere of inter-city Bus travel.

36 Building The Scrappage Ecosystem: The industry is laying the foundation for a robust scrappage ecosystem.

40 Fuels To Attain SDGs: The 17th lecture of the SIAM environment series focused on the role of fuels in attaining SDGs.

46 52 Plugged-In: Social media highlights.

Scan QR code to get started

Decarbonisation and Digitalisation Busworld webinar focuses on the bus industry’s SDGs. Step 1 : Open the Camera app or a QR Code scanning app Step 2 : Hold your device steady for 2-3 seconds pointing towards the adjoining QR Code Step 3 : A notification with a url will appear Step 4 : Click to visit the content as shown on the right hand side. Commercial Vehicle www.commercialvehicle.in | February 2022

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115 companies file for PLI A total of 115 companies have filed for the Production Linked Incentive (PLI) scheme. The scheme is known to have received applications from both domestic as well as globally headquartered groups. Till the deadline set by the government, 13 applications were received under the champion OEM category (except two-wheeler and three-wheeler), seven under Champion OEM (two-wheeler and three-wheeler), 83 under component OEM with the rest of the applications from the new non-automotive investors for both OEM and component categories. Under the PLI scheme, the incentive structure is expected to encourage the industry to make fresh investments in building indigenous supply chains and deep localisation of Advanced Automotive Technology (AAT) products. The scheme is being hailed as a game-changer and driver for the industry’s transition to a hi-tech one.

ARAI celebrates GoI initiatives

Foreign Trade

The Government of India (GoI) initiative ‘Azadi Ka Amrit Mahotsav’ week commemorated and celebrated 75 years of progressive India, as well as the remarkable history of its people, culture, and achievements. As part of the celebrations between January 1016, 2022, ARAI hosted virtual sessions on its TechNovuus platform. At ARAI, the week was full of sessions themed on ‘Sustainability’, ‘Swachh Bharat’, ‘Youth Involvement’, ‘Atma Nirbhar Bharat’, ‘Skill India’, and ‘Innovation’. Notably, sessions like the ‘Flex-Fuel Technology in India’ presented a comprehensive roadmap for the rollout in India. It touched upon cooperation with Brazil, regulations and standards, demands on calibration, emissions, cold start systems, and flex-fuel components to name a few focal areas (Watch out for the detailed coverage in our upcoming issue). The official journey of the initiative began on March 12, 2021, and will culminate on August 15, 2023, after a 75week countdown to the nation’s 75th Independence anniversary.

The Government of India (GoI) is taking several steps to promote and diversify MSME exports. Out of the USD 198.26 bn worth of exports between AprilSeptember, 2021, MSME related exports accounted for ~45.80 per cent (valued at USD 90.80 bn). The GoI initiatives include the establishment of 52 Export Facilitation Centres (EFCs) with an aim to provide requisite mentoring and hand holding support to MSMEs, to in turn export their products and services to global markets. In addition, 102 Enterprise Development Centres (EDCs) are offering professional mentoring and hand holding support services to existing as well as aspiring entrepreneurs with a special focus on rural enterprises. Through the MSME technology centres, technical support and consultancy services are provided. Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Levies and Taxes (RoSCTL) scheme launched with effect January 01, 2021 are among the initiatives to promote MSME exports.

Commercial Vehicle February 2022 | www.commercialvehicle.in

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M&M’s new value proposition Mahindra’s Truck and Bus Division (MTBD) has upped the ante with a new value proposition. Extending its Blazo assurance to the entire BSVI range, from 3.5-tonne to 55-tonne, the company now assures a best-in-class mileage guarantee failing which it will take back the trucks sold across segments. The scheme was first introduced for the Blazo trucks range, in 2016. Jalaj Gupta, Business Head -Commercial Vehicle Business Unit at Mahindra & Mahindra Ltd. in an exclusive chat with CV, claimed that none of the Blazo trucks purchased

Mahindra e-Alfa Cargo Mahindra Electric Mobility Ltd. launched the electric three-wheeler variant of the Alfa, the e-Alfa Cargo at Rs.1.44 Lakh (Ex-showroom Delhi) after it was first launched as a passenger variant in 2008 and cargo variant in 2009. The launch of the e-Alfa Cargo marks the entry of Mahindra in the rapidly growing e-cart segment and joins the Mahindra Treo Zor launched in October 2020. Suman Mishra, Chief Executive Officer of Mahindra Electric Mobility Ltd. said, “The last-mile delivery segment is seeing excellent adoption of electric three-wheelers due to significant operating cost advantages versus fossil fuel-powered three-wheelers. We are now launching the e-Alfa Cargo e-cart in response to the customer requirements in this segment.” The e-variant is expected to save up to Rs.60,000 per year in operational costs when compared to the diesel variant for the operator. The e-Alfa cargo tray comes with a payload capacity of 310 kg and offers an 80 km range with a top speed of 25 kmph. The company offers an on-board 48 V/15 A charger and claims to support the new variant with 300 outlets. Other noteworthy features include a fully digital instrument cluster. It comes with a one-year warranty.

Commercial Vehicle February 2022 | www.commercialvehicle.in

under this scheme came back and gave the company an added confidence. Veejay Nakra, Chief Executive Officer (Automotive Sector), Mahindra & Mahindra Ltd. commented, “Given the spiralling fuel prices, there wasn’t a better time to introduce this customer value proposition.” The company is also additionally offering service guarantees to ensure a higher uptime for its fleet customers. A mobile service van for on-road assistance will help in providing a quicker turnaround. (Watch out for details in our upcoming issue)

ALL and Aidrivers partner on autonomous vehicle solutions Aidrivers is known for its AI-enabled autonomous solutions for industrial mobility. It has partnered with Ashok Leyland Ltd. to develop AI-enabled autonomous vehicles in keeping with the industry’s long-term needs. As per the MoU, signed early in January 2022, Aidrivers will provide AI-enabled autonomous solutions on Ashok Leyland platforms. The partners will work together to tap new markets and opportunities. Rafiq Swash, Founder and Chief Executive Officer, Aidrivers, mentioned, “There are clear opportunities where the skills, resources, reputation and technical knowhow of both Aidrivers and Ashok Leyland can complement each other, particularly in meeting the needs of industry for a sustainable future.” Further commenting on the scope of innovative autonomous solutions, N Saravanan, President and Chief Technology Officer of Ashok Leyland said, “We are delighted to be collaborating with Aidrivers and look forward to creating, and developing the innovative autonomous solutions that will drive the industry forward in the coming years.”

Bulletin

Switch Mobility’s new site Switch Mobility Ltd. has confirmed its site for a new manufacturing and technology centre at a conference attended by Dr Andy Palmer, Executive Vice Chairman & CEO of Switch Mobility, Reyes Maroto Illera, Minister of Industry, Trade and Tourism of the Government of Spain, Alfonso Fernández Mañueco, Regional President of the Government of Castilla y León and Oscar Puente, Mayor of Valladolid. Situated five kilometres from the centre of Valladolid, the new 35-acre site, will be converted into a manufacturing and Research and Development (R&D) hub for Switch Mobility’s electric buses and light commercial vehicles. To be built on a greenfield

site in the Soto de Medinilla area of Valladolid, the new site has been chosen after looking at several options within the Castilla y Leon region. it is claimed to be perfectly located to leverage the strong automotive supply base within the region. The facility will be built in stages, starting with bus production and R&D. With an investment of Euro 100 million earmarked over the next decade, the new facility is set to create

7,000 direct and indirect jobs in the region. As stated by the company, this new greenfield plant will be entirely carbon neutral all through the construction process and continue to operate at a carbon neutral level at the vehicle production stage. The new facility also houses the production of its first electric bus designed specifically to meet the needs of the European market.

Tata Motors buoyant on CNG

OSM MoU with Jae Sung Tech

Tata Motors with its Tata Tiago and Tigor iCNG variants is buoyant on the reception of CNG drivetrains joining the mix. Claimed to score high on performance, safety, smart technology and segment-first features like single advance ECU, auto switch over between fuels, direct start in CNG (a segment-first), and a faster refuelling besides the digital instrument cluster. Introducing the technology in the Tata Tiago and Tigor in the first phase, the company could build on it for fleet customers. 45 per cent of its I&LCV range is now CNG. Fuel is the single biggest cost contributor for fleet operators. With fuel prices refusing to cool down any further, the price differential at approximately Rs.29 between CNG and diesel (taking Mumbai as the base case*) and the growing government impetus on expanding the CNG infrastructure in the country, Original Equipment Manufacturers (OEMs) are also expanding their mix with factory-fitted CNG-variants. A preferred choice with fleet aggregators, CNG kits, have been the mainstay for owner-operators.

Omega Seiki Mobility Pvt. Ltd. (OSM) signed an MoU with Jae Sung Tech Co. Ltd. of Korea. As a part of this partnership, the two companies will be forming a new Joint Venture (JV)OSM JAE SUNG Tech Co. Ltd. The JV company will see the all-electric Ra314 powertrain as the first product and will find its home in the OSM Rage+, by the first quarter of FY2023 (Q1FY2023). The Ra314 will be manufactured by OSM at the Faridabad and across the Pune facility of the group company Omega Bright Steel. Jae Sung brings to the table, years of experience with its technical know-how while OSM will leverage its manufacturing prowess to localise the powertrain. OSM will also be testing and calibrating the Ra314 for typical Indian driving conditions. The Ra314 is claimed to stand out with its 3S build – Silent Drive, Simple Architecture, and Superior Durability. Besides, the new powertrain is IP67 rated including being submerged for 30 minutes. Based on internal testing conducted by OSM and Jae Sung, the new powertrain is claimed to be 30 per cent more efficient and 20 per cent lighter than existing power units doing duty in the electric three-wheelers at the moment. The efficiency is attributed to an integrated motor, gearbox design and light-weighting.

Commercial Vehicle February 2022 | www.commercialvehicle.in

Bulletin

Adani Group interests Adani Enterprises Ltd. has made its business interests public in a SEBI filing as per reports. By the end of the year 2021, the company had established a wholly-owned subsidiary company, Adani New Industries Ltd. Through this subsidiary, the company will undertake the business of developing and operating projects for the synthesis of low carbon fuels and chemicals, generation of low carbon electricity and the manufacture of key components and material for such projects including but not limited to generation of green hydrogen, related downstream products, solar

modules, batteries, electrolysers, associated upstream manufacturing as well as ancillary industries and related activities. If the latest reports are to be believed, the company could expand to commercial vehicles also under the trademark ‘Adani Vehicle’ for surface transport (road)

ZF India owns a majority stake in Rane Group JV ZF India has become the majority shareholder in Rane TRW Steering Systems. It now holds a 51 per cent stake in the Joint Venture (JV). Up until now, both partners held equal shares in the company. In the future, the JV will operate on the market under the name ‘ZF Rane Automotive India’. The renaming is said to reflect an enhanced cooperation between the partners. India being an important market for ZF, Dr Holger Klein, Member of the Board of Management, ZF Group said, “By acquiring a majority stake from our long-standing partner Rane, we aim to further expand both our passenger car and commercial vehicle businesses for our customers in the Indian region.” Under the JV, the partners expect to offer newer technologies, expedite new product introductions, and localisation. Rane Group is a strategic partner that will aid ZF to leverage competence, in line with the ‘Refresh India’ strategy. Harish Lakshman, Vice Chairman, Rane Group & Managing Director, Rane TRW Steering Systems Pvt. Ltd. cited the one per cent transfer to ZF as a major step in taking the relationship to the next level. Suresh KV, President, ZF India Pvt. Ltd. stated, “The complementary nature of the partners has been the hallmark of this JV which has resulted in the organisation performing consistently over the years. Support for the Indian customer base with ZF engineering and technology along with the customer connect and operations excellence of Rane will continue to define future goals.”

Commercial Vehicle February 2022 | www.commercialvehicle.in

vehicles. As reported, in the initial phase, the company could look at including coaches, buses and trucks in its plan for internal logistical activities at ports, and airports. It could also set up an R&D facility for its emobility projects in the SEZ of Gujarat’s Mundra port.

Apollo Tyres secures green power for its facility To meet its sustainability targets, Apollo Tyres is ensuring green power for its largest manufacturing facility in Chennai. It has invested a total sum of Rs.93 million in CSE Deccan Solar, for a 27.2 per cent equity, to get a guaranteed supply of 40 mn units of electricity per annum for this facility. Commenting on this, Sunam Sarkar, President and Chief Business Officer, Apollo Tyres Ltd. said, “The solar power that we are securing with this investment, will help us become self-sufficient for our power requirements for critical equipment, and strengthen our commitment towards carbon emissions reduction.” With the supply of solar power to Apollo Tyres’ Chennai facility commencing in July this year, the company is looking at cost savings through this deal with ‘Cleantech Solar’.

Bulletin

Samir Gupta is MD Continental Tires Continental Tires (Continental) has appointed Samir Gupta as the new Managing Director, India. In his new role, he will be responsible for enhancing the company’s profitability, business transformation, and for building resilient teams. He will also continue to head the central Asia region (India, Indonesia, Thailand and Malaysia) for the Passenger and Light Truck Tyres Replacement

Business (PLT RE). Doing so for the past three years, he has been associated with Continental for almost a decade leading the

organisational transformation project to build a highlyeffective technical sales force. Commenting on the appointment of Samir Gupta, Dalibor Kalina, Head of Business Area Replacement Tires APAC said, “His extensive leadership experience spanning across various markets will help build and maintain agility to improve the operational efficiency crucial to Continental’s success in India.

ETO Motors builds EV charging infra

JBM Auto targets localisation of EV components

ETO Motors Pvt. Ltd. has joined hands with BSES and Tata Power DDL to set up around 2000-3000 EV charging stations over two to three years in the DelhiNCR region. ETO Motors has already set up over 30 MW of EV charging infrastructure across the country and this association with BSES and Tata Power DDL is in line with the company’s commitment to provide smart and affordable charging solutions aimed at overcoming charging infrastructure challenges. The company is looking at a horizon of five years to set up over 10,000 EV charging stations in the region. ETO Motor’s appointment and empanelment by Delhi’s Distribution Companies (DISCOMs’), namely BSES Rajdhani, BSES Yamuna and Tata Power DDL for the installation of subsidised electric vehicle charging stations was done for a period of three years through a tender floated by BSES Rajdhani on behalf of the three DISCOMs’ in July 2021. The Delhi Government has decided to set up a single-window facility and empanel vendors through DISCOMs’ for the smooth rollout of EV chargers in private and semi-public places. The single window facility will enable the consumers to compare costs and features of different chargers on the DISCOM websites, order a charger and schedule its installation through a single call or an online order. As an incentive, the Government of NCTD also plans to provide a subsidy of up to Rs.6,000 per charging point, for the first 30,000 charging stations.

To increase localisation of EV batteries and aggregates, JBM Auto Ltd. has announced the acquisition of a 51 per cent stake in JBM Green Energy Systems Pvt. Ltd. and JBM EV Industries Pvt. Ltd. through its subsidiary JBM Electric Vehicles Pvt. Ltd. Post this stake acquisition, JBM Green Energy Systems Pvt. Ltd. and JBM EV Industries Pvt. Ltd. have become the indirect subsidiary companies of JBM Auto Ltd. JBM Green Energy is engaged in manufacturing complete lithium-ion battery packs for EVs thereby working towards new benchmarks of localisation as outlined by various government policy initiatives. With the objective of enhancing indigenisation, JBM EV Industries manufacture key aggregates and auto systems for EVs. JBM Auto’s 100 per cent electric buse ‘Ecolife’ is operating in Karnataka, Gujarat, Delhi-NCR region, Maharashtra, Andaman & Nicobar to name a few. The recent flag-off of JBM Ecolife e-buses in Karnataka and Delhi, NCR marks the first-ever rollout of electric buses in the states. The company claims to provide a complete e-mobility ecosystem right from the vehicle to the charging and power infra, to after sales services.

Commercial Vehicle February 2022 | www.commercialvehicle.in

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SANY partners with COAOI

Sany India recently teamed up with the Crane Owners Association of India (COAOI) to host an Infrastructure Equipment Skill Councils (IESC) Accredited Truck Crane Operators’ Training and Certification programme. Held in Ahmedabad, Gujarat, the programme saw 20 truck crane operators from various customers attend to learn about crane operation safety and industry standards. The programme took place as per the guidelines laid out by the National Skill & Development Corporation (NSDC).

Motorhomes by Pinnacle Industries

Kerala Tourism has collaborated with Pinnacle Industries Ltd. known for the manufacturing of automotive seating systems, interiors, speciality vehicles. The two unveiled a premium range of three motorhomes to promote and revive tourism in the state of Kerala at a jointly organised expo. Under this collaboration, the companies rolled out and will continue to roll out numerous motorhomes in the forthcoming months. This caravan is ARAI approved under AIS(124) standards and is equipped with all luxury, functional, entertainment and safety utilities. Commenting on the new launch, Sachin Deshmukh, Executive Director, Pinnacle Industries Ltd. highlighted, “Caravan and recreational vehicle tourism is set to bring in exponential growth to the much-affected travel and tourism industry, and minimise the risks involved in using public transport and public spaces in transit.” “We have designed this motorhome keeping in mind the comfort and convenience of end-users while maintaining the design and functional aesthetics,” he said.

SANY launches CEV-IV Motor Grader SANY has launched the CEV Stage IV compliant, Sany STG170C-10 series Motor Grader. Designed to meet customer expectations, the new product by the company will help customers to earn a high return on their investment in this grader due to its multi- utility functions. The newly built frame and stronger elements make road grading seamless, while the grader’s optimum weight distribution, better drawbar pull, and significant blade down force are claimed to add to productivity and efficiency. Providing industry-leading productivity and performance, the motor grader will help move the material in less time while increasing fuel economy by 15 per cent, claims the company.

Group Landmark collaborates with BYD

Group Landmark has partnered with BYD India. Aiming at venturing into the EV segment, the partnership will focus on commercial sales of the BYD flagship product E6 in Delhi NCR and Greater Mumbai. Commenting on the partnership, Sanjay Thakker, Chairman and Founder of Group Landmark said, “We are also excited to be part of India’s electric vehicle revolution which has just begun and is likely to transform the country’s mobility in the next decade.” “With BYD, we intend to replicate our deep understanding of the Indian consumer and market for their strategic goals in India,” he shared.

Purple Group of Companies Founder passes away

Keshav Waman Patwardhan, founder of Prasanna Group of Companies passed away at the age of 91. Fondly remembered as Rayakaka Patwardhan, he is known to have founded Prasanna Travels in 1964 besides other group companies into diverse businesses. An industry veteran, he saw many ups and downs like in 1985 when the contract with the Pune University being scaled down. Then came the turning point in 2009, when the Group entered PublicPrivate Partnerships (PPP) with civic authorities in Jalgaon (Maharashtra) and Indore (Madhya Pradesh), to run intercity bus services. Prasanna Travels, headed by son Prasanna Patwardhan since 1986, continues to reach new heights furthering his vision. Commercial Vehicle www.commercialvehicle.in | February 2022

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ADVIK partners with H2X ADVIK Hi-Tech Pvt. Ltd. has partnered with H2X Global Ltd. to develop products and components for hydrogen vehicles and powered products for India and for the global markets. These vehicles and components have been designed and developed by the H2X global design team and the company has commenced

New appointment at Ecom Express Ecom Express, the end-to-end logistics solutions provider to the e-commerce industry, in India, has appointed Prashant Gazipur as Vice President for Process Excellence. He will be based at Ecom Express corporate office in Gurugram and will report to T. A. Krishnan, Chief Executive Officer and Co-founder. In this role, Gazipur will be responsible for further enhancing product and process excellence across the company. Leveraging his deep expertise in process governance for digital commerce and allied logistics, he will also help drive best practices and ensure all business processes deliver integrated performance while meeting customer expectations. His key responsibility areas also include driving initiatives to build capabilities around business resilience and the company’s ongoing digital transformation.

Commercial Vehicle February 2022 | www.commercialvehicle.in

the production of these to meet the rising demand for hydrogen-powered equipment and vehicles in India. The JV will also manufacture fuel cells, generators and vehicles thus embarking on its entry into the segment with a huge potential. Commenting on this association, Aditya Bhartia, Managing Director for ADVIK Hi-Tech said,

“We have great confidence in the product range from H2X as being one with several key opportunities to support to the deployment of hydrogen in the Indian market. Together with our local knowledge and expertise we see great opportunity to develop this for the acceleration of the Indian clean energy mission movement.”

Bengaluru to get 1,500 electric buses Bengaluru will soon get 1500 e-buses under the Centre’s ‘Grand e-Mobility Challenge’. The Chief Minister of Karnataka, Basavaraj Bommai is known to have asked the transport department to acquire mini-buses for Bengaluru city as they are deemed feasible for deployment on narrow roads. He also insisted on converting the existing bus fleet to CNG. Convergence Energy Services Ltd. (CESL), a PSU under the Union

ministry of power, recently unveiled a tender worth Rs.5,500 crore to induct 5,580 e-buses (5,450 single-decker and 130 double-decker ones) across the country. While Bengaluru gets 1500 buses under this scheme, in similar such initiatives, Kolkata will get a maximum number of 2,000 e-buses; Delhi will get 1500 e-buses, and Hyderabad and Surat will get 300 and 150 respectively. Mumbai will also get 900 double-decker e-buses.

Sustainability 4.0 Awards In its 12th edition, Frost & Sullivan and TERI presented the Sustainability 4.0 Awards 2021. Aimed at highlighting the need for linkages between an organisation’s strategy, governance and financial performance and the social, environmental and economic context within which it operates. The awards this year were all about enabling businesses to take more logical and sustainable decisions that ensure long-term stakeholder value. Henkel Adhesive Technologies India

Pvt. Ltd., Vedanta Ltd., JSW Steel Ltd., and Toyota India are among the winners this year at the Sustainability Awards 4.0.

ZF CV solutions The launch of ZF Friedrichshafen AG (ZF) ‘Commercial Vehicle Solutions’ (CVS) Division was announced earlier this year. The new organisation will bring together ZF’s commercial vehicle experience to promote solutions for safe, sustainable, and smart transportation. The new division brings together ZF’s former Commercial Vehicle Technology and Commercial Vehicle Control Systems Divisions. The latter was created following ZF’s acquisition of WABCO in May 2020. Leveraging upon its broad technological positioning and global market presence, ZF offers key solutions to its customers to transform its product portfolio from a single source. With the help of its strong regional structure, the company offers significant advantages and close customer proximity for truck, bus and trailer manufacturers as well as fleet operators, wherever

First airport to get wireless e-bus charging Kansas City International Airport (KCI) has become the first airport in the United States to invest in a wireless vehicle charging system for its electric buses. By doing so, the aviation department is looking at extending the range of its electric buses without installing an above-ground charging station or taking buses out of service for charging. The charging solution will be provided by Momentum Dynamics. Supported by two 300 kW wireless chargers located at shuttle bus stops at the new terminal, the charging system will provide incremental charging to the existing ‘KCI Economy Parking’ electric shuttle buses, thus keeping the buses in service longer along the seven-mile loop. While awaiting passengers, the e-buses will park over the charging pads and will automatically receive an incremental charge. Charging takes place while passengers are loading and unloading, and each session ends when the bus leaves the pad. As part of the airport’s USD 1.5 bn project, this charging system will be in place after the new terminal opens to traffic in 2023.

Bulletin | international

they are in the world. Wilhelm Rehm, a Member of the ZF Board of Management with responsibility for the new division opined, “In line with our ‘Next Generation Mobility’ corporate strategy, CVS will accelerate ZF’s global growth strategy.” Around 25,000 employees work for ZF’s Commercial Vehicle Solutions division, spread across 61 locations over 28 countries.

Škoda E’CITY starts city trails

The City of Prague (DPP) will deploy Škoda E’CITY electric buses on three bus routes 154, 213 and 124 on weekends. Prague is the first city in which the new Czech electric bus has begun to operate. The remaining 13 vehicles will be taken over by the DPP at the beginning of February this year, and they will be gradually return to service. As a result, DPP saves around 252,000 litres of diesel per year and emits approximately

714 tonnes less CO2. It is yet another DPP contribution to the development of more ecologically friendly public transportation and the fulfilment of Prague’s climate commitment goal. “As part of the gradual electrification of bus lines, we plan to purchase up to 100 e-buses and 70 battery trolley buses over three years,“ announced Petr Witowski, Chairman of the Board of Directors and CEO of DPP.

Commercial Vehicle www.commercialvehicle.in | February 2022

Product Launch

Hilux For Commercial Use The Toyota Hilux HEATS UP the pickup segment in India. Ashish Bhatia looks at OFFERINGS for commercial use.

oyota Hilux made its way to India in January 2022, five decades after being launched in 1968. Its global sales of over 20 mn units with eight generations in over 180 countries make for a strong business case in India. Toyota Kirloskar Motors (TKM), in its virtual launch, unveiled the Group’s plan with the ‘High’ on ‘Luxury’ pickup truck in India. Known the world over for its off-road capabilities, the Hilux is claimed to have survived extreme circumstances and lived to tell the tale. This, perhaps is also its biggest selling point as a commercial vehicle, if one were to keep the initial cost of acquisition and cost-benefit analysis on its Total Cost of Ownership (TCO) aside to focus purely on the utilitarian genes of the Hilux. The pickup goes head-on

Commercial Vehicle February 2022 | www.commercialvehicle.in

Yoshiki Konishi, Global Chief Engineer, Toyota Motor Corporation with the likes of Isuzu D-Max in India and is undoubtedly a more premium offering in three variants expected to score, in performance, over the mainstay offerings from Indian Original Equipment Manufacturers (OEMs) in the country. Positioned as the premium flagship, in its segment, the Hilux, notably, draws its identity from the Toyota Innova and Fortuner, sharing the IMV2 platform known to have done

Jurachart Jongusuk, Toyota Regional Chief Engineer, Toyota Motor Corporation. well for Toyota India. Sharing uncanny commonalities with the Fortuner, it holds its own though. Even though the OEM refrained from spilling the beans on the price (ExShowroom) and commercial delivery time line, it can be expected to take place over the next quarter. Bookings were opened for the Hilux, however, within a fortnight of its launch,

Product Launch

OFF-Road Features  Tough frame with exceptional torsional and bending rigidity  4WD with High (h4) and Low (L4) range  Downhill Assist Control (DAC)  Active Traction Control (A-Trac)  Electronic Drive (2WD/4WD) Control  Electronic Differential Lock  Approach/Departure angle of 29.22 deg and 26.35 deg

the Group has confirmed a temporary halt dampening the excitement a tad bit. Claimed the TKM spokesperson in a press statement, “The iconic Hilux has been recently launched in the Indian market to cater to the needs of customers seeking an incredible lifestyle utility vehicle. We are delighted with the overwhelming response that the Hilux has received from our customers within a fortnight of its launch.” The statement further explained the decision to halt bookings. “We are grateful to our valued customers for their continued trust and confidence in our brand and our enhanced offerings in this whole new

product segment. However, in light of various factors impacting our supply, we are unable to meet the heightened demand. Thus, we deeply regret our temporary halt of bookings for the Hilux to avoid any further inconvenience to our customers.” “We will continue our best efforts to resume the Hilux bookings at the earliest possible opportunity, to provide the best customer experience.” the TKM spokesperson stated. Tweaked for India According to Jurachart Jongusuk, Toyota Regional Chief Engineer, Toyota Motor Corporation, a deep analysis of

the target consumers’ driving needs and varied usage of vehicles in local conditions with greater market insights was carried out before the launch. The Hilux is a testament to Toyota’s world-class engineering, enhanced safety and best-in-class comfort aptly channelised to position the goanywhere, do-anything vehicle, he said. The cosmetic appeal is supplemented by a tough skeleton and is likely to appeal to the commercial operators given the gruelling needs on any given day at work, in comparison to adventure enthusiasts which it is primarily focused on. The Hilux comes along with a high-performance, heavy-duty turbo engine with added claims of maximised frictional efficiency courtesy of diamond-like carbon coating adopted on the piston rings. Toyota claims to offer 203 hp power at 3000-4000 rpm and a peak rated torque of 500 Nm (best-in-class) at 1600-2800

Commercial Vehicle www.commercialvehicle.in | February 2022

Product Launch Parameter

STD MT

High MT

GVW

2.9-tonne

Payload Capacity

0.47-tonne

Seating Capacity

five-seater

Engine

2.8-litre, BSVI Diesel, four-cylinder inline

Power

203 hp @3400 rpm

Torque

420 Nm @1400-3400 rpm

Suspension Tyre

203 hp@3000-3400 rpm 500 Nm @1600-2800 rpm

Front: Double wishbone Rear: Leaf spring rigid axle

Brake

Front: Ventilated Disc Rear: Drum Bridgestone 265/65R17 Radial, Tubeless

Stabiliser Transmission

Six-speed manual with IMT

rpm through the BSVI 2.8-litre, four-cylinder, in-line diesel engine. It is mated to a sixspeed automatic transmission in the top variant. To enhance drive ability, the pickup incorporates variable full control to the power steering. This is claimed to make the steering lighter, at low speeds, in city traffic conditions and heavier at higher speeds especially when cruising on the highway. The steering dynamics are known to change with the eco and power drive-modes. Commercial Vehicle February 2022 | www.commercialvehicle.in

Bridgestone 265/60R18 110H Radial, Tubeless

Front, Pitch And Bounce Control

Drive Type

High AT

six-speed automatic (sequential shift + shift lock)

4WD Auto Limited Slip Differential

The switch from either mode is complemented with intelligent adaption. On the utility front, Hilux measures 5235 mm in length, 1855 mm in width and 1815 mm in height offering a 216 mm ground clearance with a 29.22 degrees (0.51 rad) approach and a 26.35 degree (0.46 rad) departure angle. It features a large deck measuring 1555 mm by 1540 mm with a 0.47-tonne rated payload capacity and an unbraked towing capacity of 0.75-tonne. Built on the

proven Multi-Purpose Vehicle (MPV) platform, the company is confident of setting new benchmarks in 4x4 off-road performance. The rigid frame is complemented by Active Traction Control (A-TRC), Auto Limited Slip Differential (LSD) especially for the uphill climbs and Downhill Assist Control (DAC). It offers a water wading capacity of 700 mm aimed at drive ability across Indian streams, in outdoor trails. This is expected to aid the operator when tackling uneven surfaces and narrow pathways, smoothly. A Proven mettle The operator has access to crucial metrics like a tyre

Product Launch

Toyota, at Dakar, raced the GR DKR Hilux T1+ this year and continues to strengthen the Hilux that should give confidence to operators.

angle monitor to gauge the tyre orientation for enhanced controllability. The wheel articulation and the differential lock is credited for the off-road capabilities that the Hilux is synonymous with. It has proven its mettle time and again at the North pole, South pole and the recent Dakar rally known as the off-road endurance flagship event. Toyota, at Dakar, raced the GR DKR Hilux T1+ this year. The Dakar version of the Hilux is known to have exited the prototype stage production version featuring the Land Cruiser 300 V6 twinturbo engine, worked on in the stock form. In India, the Hilux while scaled down from the endurance version has enough going for it in terms of a built on learnings gathered from eight previous generations and an over five-decade legacy to mark this new chapter. Coming in with a five star Asian NCAP rating, Hilux lays to rest any doubts regarding the safety offerings in the India avatar too. There are seven SRS air bags that go beyond the recent six air bags mandate among other critical safety features on-board (refer to the key

specifications table). Setting aside a scepticism of critics citing its upgrade with the Toyota Tacoma among other variants, its India entry is deemed apt given that it will stretch the segment benchmark from current contenders in its inimitable way. The big question, though, beyond the off-road capability and proven utilitarian capabilities, is, as a defacto choice of personal ownership, will the Indian Hilux pull the cost-conscious fleet operator towards it? If he or she chooses to, they stand to benefit from the three years or 100,000 km

warranty, an extended warranty of five years or 150,000 km, express maintenance within 60 minutes at all Toyota dealerships. As of Jan 01, 2022, there are 277 sales outlets, 342 service centres and 276 touch points. Buyers can also look forward to availing themselves of roadside assistance of up to eight years of ownership with the first three years free of cost. Besides, the Toyota Connect app. and ‘Smiles’ service value pack, and additional benefits include the Toyota Trust and Toyota Financial Services arm access for working around the initial high cost of acquisition from a commercial mind set. One can look at global markets like Europe to draw inspiration where the Hilux commercial range drives business as a single cab, extra cab and double cab variant with a payload capacity of 1.04-tonne and a towing capacity of up to 3.5-tonne or neighbouring countries like Bhutan where I found the previous generations to be a popular choice. It will be interesting to see how TKM caters to this niche, if it choses to!

Commercial Vehicle www.commercialvehicle.in | February 2022

cover story

t’s not easy to please all! Who better than Finance Minister (FM) Nirmala Sitharaman to vouch for it as she knows what it feels like to walk on thin ice. Not an exclusive sense of dichotomy, it’s been the case with any Finance Minister tasked with appeasing all sections of society, in one go, on budget day. In her fourth budget, the FM,

Commercial Vehicle February 2022 | www.commercialvehicle.in

despite year-long allocations and interventions was duty bound to present the balance sheet ‘As-Is’ and make provisions for fresh allocations from the Centre as expected by the stakeholders of the commercial vehicles industry from the annual spectacle. Especially, since the economic recovery was marred the third time around by the Omicron

mutation of the Covid-19. In the third consecutive year of the pandemic, she was expected to dole out allocations akin to a booster jab for instant growth. And so, she was expected to announce a majority of measures for the near to mid-term. Instead, the FM in a unanimous word on the street, surprised a large section, with a long-term focused

cover story budget, tabled and deemed apt for sustainable growth. “Brevity has always been a virtue,” tweeted Anand Mahindra on the shortest budget speech by the sitting FM to sum up the overall business sentiment as she concluded. Starting off the customary Union Budget 2022-23 speech, the FM began on a sombre note as she extended empathy towards victims of the pandemic, those who experienced adverse impacts. From thereon, she shifted gears to remind the House of the interventions in the recent past that lay the foundation for her announcements. “The overall, sharp rebound and recovery of the economy are reflective of our country’s strong resilience. India’s economic growth in the current year is estimated to be 9.2 per cent, the highest among all large economies,” she asserted. Drawing attention to the speed and coverage of the country’s vaccination and the improvement made on health infrastructure in the past two years, the FM opined that the country is in a strong position to withstand challenges. India at 100 Referring to the vision for India at 100 in a 25-year lead-up from India at 75, she went on to highlight the key goalposts, ranking high on the Government of India (GoI) agenda. These comprise of macro-economic level growth focus with a micro-economic level all-inclusive welfare focus, promoting digital economy and fin tech, technologyenabled development, energy transition, and climate action. It also included relying on a virtuous cycle, starting from Commercial Vehicle www.commercialvehicle.in | February 2022

cover story

SIAM welcomes a growth-oriented budget focused on building long term strength using Investment as the growth lever while maintaining policy stability and inclusivity. We will work with the government for policy and welcome the message on ease of doing business and look forward to this being observed in spirit by all departments.” Kenichi Ayukawa, President of SIAM

For the Indian automobile sector, which is a significant contributor to the nation’s GDP, the budget offers continuity and also additional opportunities to drive multi-year growth.” P B Balaji, Group CFO, Tata Motors Ltd.

private investment with public capital investment, and helping to crowd-in private investment. “The Productivity Linked Incentive in 14 sectors for achieving the vision of AtmaNirbhar Bharat has received an excellent response,” she added, referring to 115 companies recently applying under the scheme, including the Champion OEMs. With the scheme expanding to Advanced Chemical Cell (ACC), for example, it is expected to create 60 lakh new jobs, and an additional production valued at 30 lakh crore over the next five years. A sharp increase in capital expenditure The FM announced to sharply increase the Capital Expenditure (CAPEX) for 2022-23 by 35.4 per cent, from 5.54 lakh crore (revised to 6.03 lakh crore this year) in 2021-22 to 7.50 lakh crore for 2022-23). The total expenditure of Rs.39.45 lakh crore is estimated at 2.9 per cent of the GDP (2.2x the expenditure of 2019-20). Total receipts other than borrowings are valued at Rs.22.84 lakh crore. The FM drew attention to the CAPEX amounting to 10.68 lakh crore when clubbed with ‘Grants-in-Aid’ for states. According to the FM, the move, building over the previous years provision, will ensure the economic recovery benefits from the multiplier effect. (Refer to graph on pg 28*). Last year’s Rs.34.83 lakh crore total budget estimates projection was also revised to Rs.37.70 lakh crore. This year, infrastructure continued to be a focus area too. The FM laid down priorities that included the PM GatiShakti, Inclusive Development, Productivity Enhancement and Investment, Sunrise Opportunities, Energy Transition, and Climate Action besides sharing a road map on financing the Investments. PM GatiShakti The PM GatiShakti was cited as a trans formative approach for economic growth and sustainable development.

Commercial Vehicle February 2022 | www.commercialvehicle.in

Nirmala Sitharaman, Minister of Finance and Corporate Affairs Of the seven engines driving it, roads, ports, mass transport and logistics infrastructure found a prominent mention in the speech. Tasked with the responsibility of pulling the economy in unison, the GoI intends to support the vision with a holistic development plan. At this point, the ‘National Master Plan’ was cited and attention was drawn to the importance of putting in place, seamless multimodal connectivity and ensuring logistics efficiency. State governments were tasked with providing supporting infrastructure, in line. The FM laid stress on planning, financing including through innovative ways, use of technology, and speedier implementation. The FM called for a need to synergise different modes of movement, both of people and goods including a selection of

PM GATISHAKTI • Driven by seven engines: Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure. • National Master Plan aimed at world class modern infrastructure and logistics synergy Formulation of Master Plan for expressways. Completing 25000 km national highways in 2022-23 • Unified Logistics Interface Platform allowing data exchange among all mode operators • Open Source Mobility Stack for seamless travel of passengers • 4 Multimodal Logistics parks through PPP to be awarded in 2022-23 • Integration of Postal and Railways Network facilitating parcel movement. • One Station One Product • Extending coverage under Kavach • 400 new generation Vande Bharat Trains • Multimodal connectivity between mass urban transport and railway stations • National Ropeways Development Plan as sustainable alternative to conventional roads. • Capacity building for infrastructure Projects

Productivity Enhancement and Investment, Sunrise Opportunities, Energy Transition and Climate Action

Promoting technology enabled development, energy transition and climate action

Virtuous cycle starting from private investment, crowded in by public capital investment

GDP

Productivity Enhancement and Investment, Sunrise Opportunities, Energy Transition and Climate Action

37 ₹ Lakh Crore

FOUR PRIORITIES

Inclusive Development

Financing of Investments

GDP

Recovery of the economy reflective of country’s resilience

31 28 25

2019-20 40

cover story

GVA 1st Lockdown

PM GatiShakti

Financing of Investments

2nd Wave

2020-21

2021-22

GVA 2nd Wave

1st Lockdown

₹ Lakh Crore

to align with the PM GatiShakti to project locations, focused on raising 37 addressing voids through social productivity, and accelerating economic 34 Recovery of the economy development projects over and above growth and development. reflective of country’s 31 resilience the central and state schemes in place. Assuring that the PM GatiShakti 28 The budgetary allocation included Master Plan for expressways would 25 Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 to Q2 an Rs.1500 fund to kick start the be formulated in Q22022-23 facilitate 2019-20 2020-21 2021-22 development programmes. Under the faster movement of people and goods, ‘Vibrant Villages Programme’, villages a big announcement on the expansion on the Northern border will gain of the National Highways (NH) network access to accelerated development of by 25,000 km by mobilising Rs.20,000 infrastructure, tourist centres and road crore gave hope to the CV industry. connectivity expected to boost the On account of offering a seamless demand for CVs in the region. multimodal movement of both goods and people, the FM revealed the plan Ease of doing business 2.0 to bring the data exchange among all In the second leg of ‘Ease of Doing mode operators on a Unified Logistics Business’, the FM announced ‘trustInterface Platform (ULIP), designed for based governance’. It seeks active Application Programming Interface involvement from stakeholders involved. (API). It is expected to reduce logistics Digitisation of manual processes and cost and time, assist Just-In-Time interventions, integration of centre and (JIT) inventory management, and state-level systems using IT bridges, eliminate tedious documentation that single-point access for citizen-centric transporter bodies express displeasure services and standardisation and on, often. Stakeholders stand to gain removal of any overlapping compliances from real-time status and an openwas emphasised. The Centre sought to source mobility stack, for seamless build an active feedback mechanism people transport if implemented as with the involvement of both citizens envisioned. The industry will also watch and businesses. Expecting a half of the out for contracts to be tendered for population, when India turns 100, to implementation of multimodal logistics migrate to urban regions, the budget Parks at four locations through PPP stressed the importance of parallel mode in 2022-23. 100 PM GatiShakti urban development. Nurturing mega cargo terminals for multimodal logistics cities and their hinterlands to turn facilities were also announced with a centres of economic growth, the FM three-year development plan. Stress called for the need to steer a paradigm was also laid on offering adequate change. To implement it, a proposal to connectivity between mass urban constitute a high-level committee of transport and railway stations. reputed urban planners, economists and institutions was reiterated. The Development of the North East Centre committed to aiding states in Under the Prime Minister Development their urban capacity building plans Initiative for North-East (PM-DevINE), by offering financial support for mass the North-Eastern Council will overlook transit projects and Atal Mission for execution. From funding infrastructure

The Union Budget 2022 presented by the Central Government has several positive signals for the EV, manufacturing and logistics sector, which are fundamental to the economy. However, the possible increase in import expenditure of certain components may cause some lack of joy among several of our industry peers.” Uday Narang, Founder and CEO, Omega Seiki Mobility Pvt. Ltd.

The Government’s commitment to promoting self-reliance and indigenisation by leveraging Indian Industry is once again reinforced with the 68 per cent (enhanced) domestic allocation for defence capital procurement. Earmarking 25 per cent of the Defence R&D budget for Industry, Start-ups & Academia is a forwardlooking measure.” Baba N. Kalyani, CMD Bharat Forge Ltd.

Commercial Vehicle www.commercialvehicle.in | February 2022

Jan

Dec

Jan

20.00

cover story

CPI-C

15.00 10.00 5.00 0.00

The PM GatiShakti National Master Plan will reduce logistics costs and improve the transport network. This will have an indirect impact on the CV industry with a positive impact on heavy trucks and LCVs. The additional excise duty on unblended fuel will encourage the blending of fuel and we expect OEM’s to further invest in clean and blended fuel engines. Overall, it is a CAPEX oriented budget for demand generation in the long term.” Kavan Mukhtyar, Partner & Automotive Leader, PwC India

-5.00 -10.00

Rejuvenation and Urban Transformation Net addition in EPF which encompasses providing basic Subscribers lakhs) infrastructure like urban (in transport. Clean and sustainable mobility Clean and sustainable mobility found a big mention in the FM budget speech! The FM shared the GoI’s intent to promote the shift to public transport in urban areas. It would be complemented by clean tech and governance solutions, special mobility zones with zero fossil-fuel policy, and EVs. To address the issue of space constraints faced whilst setting up charging infrastructure in urban areas, she informed of the centre coming out with a battery swapping policy and formulating inter-operability standards much to the delight of the industry. The FM informed the House, that the private sector will be encouraged to develop sustainable and innovative business models for ‘Battery or Energy as a Service’ expected to improve efficiency in the EV ecosystem. Data Centres and Energy Storage Systems including dense charging infrastructure and grid-scale battery systems were also awarded infrastructure status which the FM opined would facilitate higher credit availability. Connected mobility could also expect to get a boost with 5G mobile services targeted for rollout within 2022-23 by private telecom providers after undertaking spectrum auction in 2022. Efforts will be made to create

Commercial Vehicle February 2022 | www.commercialvehicle.in

Jan-18 Apr-18 Jul-18 Oct-18

The Finance Minister has presented a growthoriented and prodevelopment Budget for 2022-23 by focusing on sustainable planning & development, energy transition for a cleaner tomorrow and inclusive growth through a techenabled economy.” Dheeraj Hinduja, Executive Chairman, Ashok Leyland Ltd.

a level playing field for tier towns as urban metros with an emphasis on facilitating access to digital services by 2025. The budget allocations outlined spending for near and long term action strategy of GoI on this front. In the Budget speech, the role of the circular economy was also outlined. The Centre, claimed the FM, was ready with action plans on 10 sectors including End of Life Vehicles (ELVs). It committed to addressing crosscutting issues of infrastructure, reverse logistics, technology up gradation and integration of the informal sector that the opposition parties recently criticised the government for its alleged neglect leading up to the budget. Farm mechanisation Farm mechanisation can expect to benefit from the impetus on agriculture in the budget outlay too. From assuring Rs.2.37 lakh crore Minimum Support Price (MSP) transfer directly to farmer accounts to promoting chemicalfree farming to increasing domestic production of oil seeds, Union Budget 2022-23 had FM commit to delivery of digital and hi-tech services to farmers with involvement of public sector research and extension institutions along with private agri-tech players and stakeholders of the agri-value chain. A scheme in PPP mode will be launched, she informed the House of Parliament. A fund with blended capital, raised under the co-investment model, will

cover story also be facilitated through NABARD. It is aimed at financing startups in the farm produce value chain and will boost machinery for farmers on a rental basis among other such initiatives. Stress was also laid on helping farmers adopt appropriate harvesting techniques with a package that will have participation from states. Its implementation could benefit farm equipment manufacturers in the long run. Initiatives for MSMEs For MSMEs, the FM announced initiatives aimed at formalising the economy and enhancing entrepreneurial opportunities. By interlinking the Udyam, e-Shram, NCS and ASEEM portals, the Centre is also looking at providing G2C, B2C and B2B services which would link back to credit facilitation, skilling and recruitment. The Emergency Credit Line Scheme (ECLS) claimed to extend credit to 130,000 MSMEs was extended up to March 2023 with its guarantee cover expanded by 50,000 crores to a total of five lakh

crore. A Credit Guarantee Trust aimed at the infusion of funds is expected to aid MSMEs with an additional credit line of two lakh crore. Through the Raising And Accelerating MSME Performance (RAMP) programme, an outlay of Rs.6000 crore will be rolled out to help the sector turn more resilient, competitive and efficient. Businesses in the past have expressed hesitancy to apply for credit to meet a relatively higher working capital requirement during the peak of lock downs when faced with a liquidity crunch for the fear of inability to repay debt. DEFENCE LOCALISATION The need to localise Defence equipment was reiterated in the FM speech. The GoI revised the capital procurement budget and enhanced the upward limit capped at 58 per cent in 2021-22 to 68 per cent for 2022-23. Defence R&D, the FM announced, will be opened up for industry, startups and academia and 25 per cent of the R&D budget was set aside for it. To top up the

We endorse the GOI’s aim to improve road connectivity by redesigning the roads in hilly areas under the Parvat Mala initiative, which will improve connectivity for commuters. The government seems inclined to strengthen and support public transport infrastructure in urban areas and allocate funds through low-interest loans to small travel operators.” Manish Rathi, Co-founder & CEO - IntrCity

GST, Custom Reforms And Duty Changes Hailed as a landmark reform by GoI, Goods and Services Tax (GST) challenges came to the fore once again in Union Budget 2022-23. The FM lauded the GST council for enabling the GoI to overcome an initial set of challenges and building a fully ITdriven and “progressive” GST regime, she admitted, that challenges remain. Resorting to overcome them in 202223, the FM lauded the buoyant growth in collections and hailed taxpayers for their cooperation. Claiming to have struck the right balance between facilitation and enforcement, the FM, credited it for resulting in better compliances. Hailing the customs’ reforms for their contribution in domestic capacity creation, providing a level playing field to MSMEs, easing the raw material supply-side constraints, enhancing the ease of doing business and being an enabler to other policy initiatives such as PLIs and Phased Manufacturing Plans, the FM moved

on to customs side proposals in her speech. She proposed to phase out the concessional rates in capital goods and project imports in a phase-wise manner, applying a “moderate” tariff of 7.5 per cent. On advanced machinery, she added, that certain exemptions within the country shall continue. Claimed to have leveraged extensive consultation, the FM proposed a gradual phase-out of 350 exemption entries especially on products where domestic capacity is deemed sufficient. She also committed to simplifying the customs rate and tariff structure. She pinned her hopes on the removal of exceptions on items that can be manufactured locally and on raw materials used for the manufacturing of intermediate products. On fuel blends, the FM cited it as a priority of GoI. Aimed at incentivising blending of fuel, the FM announced that unblended fuel would be subjected to an additional differential excise duty of rupees two per litre with effect October 01, 2022.

The introduction of the battery swapping policy and recognising battery and energy as a service will enable the development of charging infrastructure and increase the use of EVs in public transportation. We believe this move can enable affordable and clean mobility. Additionally, creating special clean zones will further accelerate the adoption of EVs and spread awareness amongst the citizens.” Pankaj Kumar Gandhi, Managing Director of Chartered Speed

Commercial Vehicle www.commercialvehicle.in | February 2022

RUPEE COMES FROM

cover story

Non Debt Capital Receipts 2%

Income Tax 15%

Borrowings and other Liabilities 35%

We welcome the long-term focus in the budget. The CV industry will benefit as trucks will play a key role in infrastructure development proposed. It will pave the way for modern CVs to operate efficiently on Indian roads. Initiatives to strengthen the rural economy will further improve vehicle buying sentiment.” Vinod Aggarwal, MD & CEO, VECV

Union Excise Duties 7%

Corporation Tax 15%

Non Tax Revenue 5%

Customs 5%

GST 16%

RUPEE GOES TO Centrally Sponsored Schemes 9%

Pensions 4%

Subsidies 8%

Defence 8%

Interest Payments 20%

The special focus towards clean technologies and EVs for public transport will positively impact companies manufacturing and supplying to electric buses and commercial vehicles. The concessional corporate tax of 15 per cent for more than one year till March 2024 will provide the much-needed impetus for the Covid impacted manufacturing segment. This is further bolstered by the eagerly anticipated re-look at the SEZ act, which will boost the competitiveness of the Indian manufacturers.” Suresh KV, President and Regional Head ZF India

private industry encouragement on taking up design and development of military platforms and equipment in collaboration with DRDO and other organisations the SPV model, the testing and certification requirements will be met by an independent nodal apex body. Artificial Intelligence, semiconductors, green energy and clean mobility were pointed as sunrise opportunities with an employment generation potential. Promoting exports To promote exports, the FM announced the replacement of the Special Economic Zones (SEZ) Act with new legislation. Laying greater stress on involving states as partners

Commercial Vehicle February 2022 | www.commercialvehicle.in

Other Expenditure 9%

Central Sector Schemes 15%

Finance Commission and Other Transfers 10%

States' Share of Taxes and Duties 17%

in ‘Development of Enterprise and Service Hubs’, the initiative is intended to cover all large existing and new industrial enclaves to optimally utilise the available infrastructure and enhance healthy competition. Financing budgetary allocations As per a Ministry of Finance, statistic, read out by the FM, in 2020-21, venture capitalists and PE funds invested a staggering amount of 5.5 lakh crore in the startup and growing ecosystem. To scale up the investment further, the FM committed to set up an expert committee to examine and suggest appropriate measures. The government has also decided to promote thematic funds for

MINISTRY WISE ALLOCATIONS Ministry of Communications

105406.82

Ministry of Chemicals and Fertilisers

107715.38

Ministry of Agriculture and Farmers' Welfare

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132513.62

Ministry of Rural Development

138203.63

Ministry of Railways

140367.13

Ministry of Home Affairs

While the focus of this budget was more on connecting rural areas to urban using state of the art infrastructure and e-mobility, the impact of this will be measured in the mid- to long term. The introduction of a battery swapping policy and the welcoming of OEMs in defence R&D can be seen as progressive in nature.” Dr Arun Singh, Global Chief Economist, Dun and Bradstreet

185776.55

Ministry of Road Transport and Highways

199107.71

Ministry of Consumer Affairs, Food and Public Distribution

217684.46

Ministry of Defence

525166.15

blended finance. The FM shared, the government share will be capped at 20 per cent with the private fund managers given the onus of managing the funds. Infrastructure projects, like in the past, will be enhanced by scaling up private capital. One will have to wait and see the impact of the digital rupee (Central Bank Digital Currency) backed by blockchain technology and to be issued by the RBI in 2022-23 on the CV sector as an additional inclusion in the digital ecosystem developed post demonetisation. On the bone of contention, often between states and the centre, central funding, the FM announced the enhanced capital outlay under the ‘Scheme for Financial Assistance to States for Capital Investment’, from Rs.10,000 crore in the budget estimates to Rs.15,000 crore in the budget estimates for 2022-23. For states to catalyse investments as their contribution to the economy, the budget set aside one

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lakh crore in a 50-year interest-free loan arrangement in addition to the regular borrowing. With the above allocations, the FM stated the government expects the fiscal deficit to hover around the 6.4 per cent of the GDP mark, in line, to bring it down to sub 4.5 per cent by 2025. A move looked like at as a direct benefit to the startups, the supply-side, the FM, in part B of her speech announced the extension of tax incentives for three years (out of 10 years of incorporation) from March 31, 2022, by an additional one year (March 31, 2023). The FM also announced the extension of the 15 per cent concessional tax applicable to newly incorporated domestic manufacturing companies by an additional year, from March 31, 2023, to March 31, 2024. The move to cap long-term tax gains on transfer of assets other than equity, revised downwards, from 37 per cent to 15 per cent, could also prove to be beneficial to the startups and manufacturing ecosystem.

The formulation of interoperability standards will be important to bring stability to the sector. We welcome the move to encourage private sector companies and start-ups to provide Battery-as-aservice and Energy-as-aservice, which will also help catalyse innovation and investments in these sectors. The increase in government contribution for R&D in clean mobility will provide an impetus to this innovation, and help bring about sustainable development at scale.” Anjali Bansal, Founder, Avaana Capital

Commercial Vehicle www.commercialvehicle.in | February 2022

Transportation And Logistics

Rooting For Safe Inter-city Bus Travel GOGOBUS is cracking real-world issues in the sphere of inter-city bus travel with technology. Sumesh Soman looks at the approach to a tech-driven, safer INTER-CITY bus commute in the offing.

hared mobility took a beating when the pandemic was at its peak. The bus industry largely constituting of private bus operators died its death with only migrants managing to gain access to inter-city travel. Either through special rescue services or to an extent through the State Transport Undertakings (STUs) pitching in for select pockets. Fast forward by two years, we continue to crawl towards an endemic with the only exception being of having learnt to live

Commercial Vehicle February 2022 | www.commercialvehicle.in

with the mutations. Post the vaccination drive picking up, the resultant brevity has opened up the bus industry with daily gross transaction volumes said to be going up. Here, the erstwhile contact less services that came in, post demonetisation and the advent of payment wallets, continue to be prioritised. Commuters are more accustomed today to contact less services powered by technology and service companies like gogoBus than ever before. The company, according to

Amit Gupta, Chief Operating Officer and Co-founder, is bracing itself for a focused approach and a planned geographic expansion with the learnings of the Covid19 pandemic. “I think the way in which Covid-19 induced lock downs helped us, was forcing us to rethink our entire approach of problem-solving. It gave us an opportunity to restructure our product so that we could solve real-world problems of the passengers, operators and the service provider as stakeholders of the

Transportation And Logistics

Avinash Singh Bagri, CoFounder and Amit Gupta, Co-Founder, at gogoBus

inter-city bus travel.” While it may be looked at as a blessing in disguise, in hindsight, Covid-19 induced learnings came at a cost for the 2019 incorporated company as it did for most businesses barring essential services. “We were hoping that it does not hit us bad. Unfortunately, it did! Two months post the March 2020 lock down of learning the primitive challenges, we gained insights into our problemsolving approach,” expressed Gupta. Of the opinion, that the industry is far from reaching normalcy, the company continues to lay the foundation for growth in the future. This includes tactical acquisitions to support the company’s expansion plans across the

country. The company, amid the pandemic, acquired BusYar, a Ranchi-based bus transport aggregate. The deal is expected to open up the prospects of tapping the fast-developing Northeastern region in line with the expansion strategy of the company. The budget push for the region is expected to help. Since the acquisition, shared Gupta, the company has expanded to Dhanbad and nearby areas and continues to penetrate at a steady pace. By the time the second wave hit, the company found itself in familiar territory, he stated. Since then (May-June 2021), it is claimed to be growing at 7080 per cent on a Month-overMonth (MoM) basis.

Addressing paranoia through value-adds gogoBus, as per Gupta, is well aware of the paranoia associated with public travel that still exists. Averred Gupta, “With travel commencing, the focus remains on ensuring hygiene factors like sanitisation and ensuring compliance to local, region-specific protocols by working hand-in-hand with the regulatory authorities.” The safety drill, claimed Gupta, includes norms for social distancing right through automated processes like seat allocation, pre-boarding checks like bus sanitisation, contact less boarding SOPs, and contact less ticketing and verifications once the journey commences. The staff aboard

Commercial Vehicle www.commercialvehicle.in | February 2022

Transportation And Logistics

the bus ensures temperature checks at the time of boarding to prevent accidental boarding of symptomatic passengers. The same SOPs apply to the bus crew. Gupta credits the execution of these strict SOPs to the technology running in the back end and the front end. For example, the company relies on its website and a mobile-based application for its potential customers. These include the frequent inter-state travellers and firsttimers including corporate and families out of the two year Covid19 induced exile. In terms of hardware inclusions in the bus itself, care has been taken to offer SOS buttons, CCTV cameras, and GPS for tracking real-time movement. The company serves buses claimed to offer advanced braking complete with body rollover protection up to 42 degrees. Among value

Commercial Vehicle February 2022 | www.commercialvehicle.in

adds are also geo-fencing, ride tracking and sharing, predefined pit stops, verified and trained staff, a central command centre and data privacy provided for its commuters. Claimed to offer a hasslefree, end-to-end experience through the entire customerjourney life cycle, the company stands out with its offerings like lounge access besides air-conditioned waiting rooms equipped with a TV and covered by WiFi to make the pre-boarding stress free. The company offers multiple apps. as a part of its suite designed for customers, drivers and fleet managers respectively. “All five apps. are available on Android and iOS backed by a web browser-based interface too for easy access,” said Gupta. The app. ‘Swamy’ was designed for the operator to relay relevant news. The app. ‘Saarthi’ enables

the driver to manage and control his operations daily from the time he/she starts the trip. It facilitates push notifications to customers too. The app. ‘Mitra’ connects passengers to help them make acquaintances and be at peace of mind for any journey related apprehensions. ‘Sanchalak’ is a super admin app. for any required interventions from the managerial level. To ensure a service guarantee, buses are monitored against a predefined checklist including timely departures. To ensure a high-quality service offering through the entire value chain, the staff is made to undergo monthly training coupled with regular audits to iron out any creases. To retain customers, the company has put in place loyalty programs that include a subscription with incentives over the standard offerings.

Transportation And Logistics

Beyond its tech offerings, the company claims to offer the best-in-class feature comforts in the bus too. These include the ultrawide maharaja or premium seats (up to two feet wide), mobile charger, additional legroom (up to 16 inches), calve rest, extra recline (up to 140-degree), pneumatic suspensions for a comfortable ride. It offers both single and multi-axle buses claimed to reduce the pitch and roll effect with the former being the rotation of the vehicle about the transverse axis and the latter being the rotation about the longitudinal axis. Other additions include an on-board air-purifier for an odour free ride, ambient lighting inside the coach to complement the daylight, HVAC systems for a temperature-controlled ride and noise insulation for a rattle-free ride. Passengers can also avail of provisions like water and blanket from the operator’s side. Buses are a lifeline Mindful of buses being a lifeline beyond metros in tier cities, Gupta quipped, these tier cities sans buses can come to a standstill as not everyone can afford the luxury of private modes of transportation

designed for a single passenger. The company is equally focused on enhancing operator earnings where it backs itself with insights from ‘Big Data’ for actionable business decision making. “Data is our core strength. Data around designing routes to the science behind planning a route down to drive efficiency and to democratise data,” claimed Gupta. To propel their growth plans in the desired direction, admitted Gupta, both state and central governments could come to the company’s aid with timely interventions. “We can collaborate with the government, and even offer our support in helping the government capitalise on our captured data for actionable insights on enabling certain routes basis supply and demand to help them prioritise,” he explained. This could help the government, for example, rationalise supply to sweat assets optimally as a perfect example of a PublicPrivate Partnership (PPP) model. Speaking on the impact on the industry in the aftermath of the pandemic and the direction it must take for the future, Gupta drew attention to the bus transport industry being the second largest industry to be

hit negatively after hospitality. He admitted to the school bus segment being hit hard as is well known. “I think a blessing in disguise is that long-distance travel still prevailed due to the essential services and goods that had to be kept in motion. So, it was not just people travelling for leisure and work, but all the essential goods, front line workers, army, police force and such frontline staff and their needs had to be catered throughout,” he pointed. He opined that inter-city and inter-state travel is well poised with a gradual recovery. To ensure, operations continue with the threat of recurring waves not ruled out, the company is educating its operators and stressing the need for operators, in turn, to ensure a seamless flow of communication with the commuters. It will enable them to hold on to their trust in the brand, he said. With its technology, gogoBus, concluded Gupta, has reduced the time taken for the customer feedback post his or her commute to reach the operator. It has paved the way for a faster channel for addressing customer concerns and incorporating suggestions without a lag.

Commercial Vehicle www.commercialvehicle.in | February 2022

Game Changer

Building The Scrappage Ecosystem The industry is laying the foundation for a robust scrappage ecosystem in line with the Voluntary Vehicle Fleet Modernisation program. Sumesh Soman visits the Maruti Suzuki Toyotsu ELV and scrappage unit to assess the on-ground capabilities.

he ‘Voluntary Vehicle Fleet Modernisation’ program notified by the Government of India (GoI) is expected to generate an investment of over Rs.10,000 crore. Expected to aid in building a robust ecosystem, the scheme is targeted at incentivising owners of the old and polluting End-of-Life-Vehicles (ELVs)

Commercial Vehicle February 2022 | www.commercialvehicle.in

due for disposal to be replaced with new and cleaner vehicles to curb the Particulate Matter (PM) emissions. For passenger vehicles, it will come into effect by June 2024 and for commercial vehicles by April 2023. Union Minister of Road Transport and Highways (MoRTH), Nitin Gadkari presiding the Maruti Suzuki Toyotsu India

Pvt. Ltd. (MSTI) ELV scrapping recycling unit launch at Noida, late last year, had said, “MoRTH has launched the visionary national automobile scrappage policy aimed at creating an ecosystem for phasing out unfit and polluting vehicles from the Indian roads. To meet this objective, we need state-ofthe-art scrapping and recycling

Game Changer

A Five-Point Guide to Scrappage of ELV The facility makes the car follow a strict five-step procedure that ensures a safe and hassle-free way to recycle ELVs.  Procurement The ELV information can be uploaded to a dedicated website by the dealerships and the owners. Using a dedicated hot line, people can connect to the facility and concerned personnel.  Transfer The registered ELV is then transferred to the MSTI campus from the dealership or the owner’s garage.  Inspection The vehicle is inspected ahead of the documentation before progressing further. Pollution certificates, insurance, and registration certificate are verified and checked thoroughly.

 Pre-treatment This is where the vehicle undergoes dismantling of its parts as well as draining of the liquids. This includes leftover fuel, coolant, engine oil, brake fluid and removal of salvageable parts such as discs, brakes, seats, engine, tyres, suspension, air-conditioner, steering, wheels to name a few. What’s left of it is just the frame or shell.  Compression The ELV shell is then put in the compressor where it is turned into a cubic bale that weighs 200-350 kilograms depending on the vehicle. After this process, the bale is sold to steel mills and smelters where it can be recycled and reused.

units.” To boost the scrappage and recycling ecosystem, Maruti Suzuki, Tsusho Group and Toyota India partnered for one such vehicle scrapping and recycling unit at Noida, in Uttar Pradesh back then. On visit, the 10,993 sq. m. expanse of the facility was found to be capable of scrapping and recycling over 24,000 ELVs on an annual basis. The new unit is equipped with advanced machinery to dismantle and scrap ELVs with precision and is known to be built with an investment of over Rs.44 crores. In line with the mission of attaining self-reliance or building an ‘Atma Nirbhar Bharat’, the equipment used at the facility is manufactured within the country. MSTI aspires to replicate such facilities across the country and this first one is touted as the first of many to come. He further averred, “I would request Maruti and other stakeholders to build and create an ecosystem of similar scrapping and recycling units across the country. This would make the roads safer, air cleaner and the raw material cheaper for their cars.” According to Kenichi Ayukawa, Chairman, MSTI and Managing Director and Chief Executive Officer (CEO), Maruti Suzuki India Ltd. (MSIL), said, “Hon’ble Minister of Road Transport & Highways, Nitin Gadkari has been a champion for cleaner, greener and safer mobility ecosystem in the country. We are grateful to him for inaugurating our new facility.” “At MSIL, we strongly believe in creating value through efficient resource optimisation and conservation. Our business processes and products are based on the principles of fewer, smaller, lighter, neater and shorter,” he expressed. Ayukawa opined, “Till

Commercial Vehicle www.commercialvehicle.in | February 2022

Game Changer

Nitin Gadkari, Minister of Road, Transport and Highways taking a tour of the Maruti Suzuki Toyotsu India ELV scrapping recycling unit in Noida.

Empty shell of an ELV on its way to getting compressed.

Commercial Vehicle February 2022 | www.commercialvehicle.in

Game Changer

A bale could weigh about 250-300 kg

Nitin Gadkari going through the different stations to understand the steps involved in the ELV scrappage process..

now there was no scientific, clean and healthy way to dispose off a car at its end-of-life. MSTI uses a global process methodology to address this gap. This is just the beginning. With our partners we are committed to set up more such modern ELV scrap and recycle centres in India. Through these centres, the customer that brings in their vehicle for scrappage, can avail of a discount on the purchase of a new vehicle. This is made possible by showing the certificate of scrappage at the dealership. Customers will get a certificate of destruction that can be used for de-registration at the Regional Transport Office (RTO) with the pay backs digital, and wired for direct transfer.

Capabilities of the MSTI unit The facility can scrap 80-100 vehicles in a day and one vehicle is known to take about 200 minutes. It can process about 2000 vehicles per month. MSTI has MSIL own a 50 per cent stake with the rest divided equally between Toyota Tsusho Corporation and Toyota Tsusho India Pvt Ltd. Naoji Saito, Chief Executive Officer for Metal Division of Toyota Tsusho Corporation said, “The Toyota Tsusho group has engaged in the ELV recycling business since 1970, in Japan. Recently we have run the environmental friendly ELV dismantling and recycling business in several

major countries of the world. Our experience of over fifty years in Japan helped in these projects.” “Now we will achieve the best practice for ELV recycling and contribute to the circular economy in India by combining our experience and equipment made in India,” he expressed. A few USPs of the unit are that all the machines are ‘Made-in-India’ besides claims of it being a zero-discharge facility. It is said to be a safe and environment-friendly scrappage unit complete with radioactive material scanning, up to 95 per cent of scrap recovery, and special care for human safety. It also boasts of compliances with GoI laid policies and rules related to vehicle scrappage besides opening up employment opportunities in the area of scrappage and recycling. This JV scrappage unit could prod more companies and OEMs to set up their facilities and units further boosting the ecosystem. One of the big OEMs, Tata Motors is also planning to set up its vehicle scrappage centres under a franchise agreement and the first one could be operational by the first half of this year. This is in addition to the CERO - Mahindra MSTC Recycling Pvt. Ltd. (MMRPL) Mumbai unit, another significant contributor.

Commercial Vehicle www.commercialvehicle.in | February 2022

Conference

Fuels To Attain SDGs

The 17th lecture of the SIAM Environment series focused on the role of fuels in attaining SDGs. Deepti Thore picks the fuel-agnostic ways deliberated upon.

ociety of Indian Automobile Manufacturers (SIAM) hosted the 17th lecture of its ‘Environment Series’. Focused on the theme ‘Sustainable Road map for Fuels in the Automotive sector’, it drew attention to adopt a fuel-agnostic approach for the automotive industry to mitigate climate change and attain its Sustainable Development Goals (SDGs). The session had speakers deliberating on an array of linked subjects like energy security, national priority and pollution mitigation of cities driven by a comprehensive and considerate approach of Government of India (GoI). With the latter defining a multi-fuel option road map, the surface transport sector (road transport in particular) has its task cut out. It involves de carbonisation in a very systematic manner involving goal posts over a near, mid- to long-term basis.. “Meeting the sustainable fuel road map will be a challenge for both, the automotive and Oil Marketing Companies (OMCs),” commented Dr R K

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Dr R K Malhotra, Director General of the Federation of Indian Petroleum Industry (FIPI) Malhotra, Director General of the Federation of Indian Petroleum Industry (FIPI) as he opened the floor for and against the school of thought. Echoing a similar sentiment, and highlighting the need for de carbonisation of road transport, Pascal Mast, Director - New Technologies and Sustainability, Mobility Division, TÜV SÜD, drew attention to the increasing number of natural

disasters raising a red flag against the wanting climate change mitigation measures. His views call for strengthening the global response on global warming. Talking about de carbonisation, Malhotra opined, “Even though Electric Vehicles (EVs) are expected to reduce carbon emissions from the tailpipe, the pilferage at source is a question mark.” Admitting to the use of renewable energy

Conference

Pascal Mast, Director - New Technologies and Sustainability, Mobility Division, TÜV SÜD

for generation of electricity in isolation, the cradle-to-cradle approach is yet to be established in the auxiliaries like battery packs which allegedly end up in the landfills. “The need is for a life cycle analysis,” he reiterated. Stressing on making EVs affordable to make it a massmobility option in India, Dr SSV Ramakumar - Director (R&D) and Board Member, Indian Oil Corporation Ltd. presented a case study wherein he analysed the downward trend in India’s carbon emissions especially from the peaks of 2018 -19 (refer to the adjoining graph). Predicting the trend to sustain itself in the aftermath of the lockdown, he circled back to

the importance of keeping a fuel-agnostic stance for the road ahead. Resource allocation for alternative fuels Fuel-agnostic approach is reliant on alternative fuels. According to Som Kapoor, Partner and Principal, Ernst & Young, the focus on reducing the fiscal deficit by way of reduction of the import bill, the role of non fossil-fuels were highlighted. “We import a lot of our oil. India’s annual crude import bill is ~Rs.12 lakh crore,” he cited. Adding that the import prices of fuel have been volatile and changed drastically over the past year (2020-21), it is a far cry from a sustainable

approach, he quipped. The current fuel roadmap is outdated and 50-70 years old, crying for a change, , he asserted. Talking about decline in carbon emissions, Som was quick to refer to an annual study taking into account carbon emissions from buses used for passenger transport. The figure, he claimed, stood at an estimated 40 million tonnes. More than 90 million tonnes was attributed to road freight transport. 30 Indian cities out of 100 are most polluted cities in the world with Delhi vehicular emission contributing ~59 per cent of the whole. Adding his views to the import viability of fuels, Dr Anjan Ray, Director, Indian Institute of Petroleum stated, “We import, primarily petroleum, coal and natural gas, in various forms.” Appealing to the SIAM members among other stakeholders, Dr Ray drew attention to the underlying opportunity in promoting

Commercial Vehicle www.commercialvehicle.in | February 2022

Conference fuels, his views were echoed by Krishnan Sadagopan, Senior Vice President- Engine development, Ashok Leyland calling for a joint R&D initiative with the OMCs.

alternative fuels. On the one crop focus across a majority of the acreage in the country, he called for the need to consider diversion of a 40 million acre land parcel for production of biofuels. Citing the change of

Commercial Vehicle February 2022 | www.commercialvehicle.in

discourse from alternate and renewable fuels to a net zero commitment, expressed Dr Ray, “The first shift of this discourse would be to make supply chains sustainable.”,he mentioned. Laying stress on choosing application specific

Policy interventions GoI was lauded for interventions to curtail excessive importance and focus on net zero emissions as per Som Kapoor. At the same time he expressed concern over few policies that were in effect in the real-world. He referred to the ‘National Policy on Biofuels’, ‘Draft Policy of City Gas Distribution (CGD)’, ‘Draft LNG Policy’, ‘Fame-II policy for promoting use of EVs and building the ecosystem besides the ‘Draft National Hydrogen Energy’ mission to promote hydrogen vehicles. “Our ministry is continuously working to reduce import of fossil fuels and focusing on local renewable energy sources in the entire energy mix of India,” mentioned Sunil Kumar, Joint Secretary (Refineries), Ministry of Petroleum & Natural Gas, New Delhi. He also highlighted, “Our refineries have spent around Rs.30,000 crore to remove sulphur content from the petrol and keep it at 10 ppm.” Commending the industry for successful migration from BSIV to BSVI, he said that the industry is focusing on novel fuels and by 2025-26 petrol will have 20 per cent blended ethanol. As highlighted by Kumar, the ministry has already piloted a recent hydrogen blended CNG experiment conducted in Delhi where 18 per cent hydrogen was blended in CNG by volume. It is claimed to have

Conference

given significant benefits. With a bulk of transportation fuel consisting of BSIV compliant processes and CNG, this is a promising development. Talking about India’s commitment at the COP26, Ramakumar promoted the use of Hydrogen as the alternative fuel. He drew attention to the five prong strategy, also known as ‘Panchamrit’, the Indian declaration at COP26 that focuses on raising non-fossil fuel based energy capacity to 500 GW by 2030; meeting the target of 50 per cent of country’s energy requirements using renewable energy by 2030; reducing total projected carbon emission by one billion tonnes up to 2030; reducing

He mentioned that they will be running 15 FCEBs supplied by Tata Motors in the Delhi NCR region. These buses will be introduced in phase wise manner over the span of next three years starting from 2022. They are the first to carry out Hydrogen fuel cell mobility initiative in India, claimed Ramakumar. They have developed the first indigenous type 3 hydrogen cylinder with IIT Kharagpur and CO tolerant fuel cell technology. They also produced HCNG, India’s first tryst towards hydrogen economy. On the Ethanol blending roadmap, Ramaprabhu R - Principal Engineer-Head, Fluids Technology- Mahindra & Mahindra mentioned that after the Ethanol Blending Motor Gasoline (EBMG) in 2008, the increased focus was made on the fuel since 2015 and built upon by the National Biofuel policy announced in 2018. It played a role in boosting the Ethanol Blending Roadmap in 2021. The ethanol production boost at the domestic level, both from sugar and other food grains, to meet the E10 and E20 targets looks promising, he opined.

Ramaprabhu R - Principal EngineerHead, Fluids Technology, Mahindra & Mahindra carbon intensity of economy to less than 45 per cent by 2030 and India to become carbon neutral and achieve net zero emission by 2070. Ramakumar drew attention to some of the key initiatives driven by IOCL to promote hydrogen as an alternative fuel.

Infrastructure status and roadmap According to Som Kapoor, the natural gas infrastructure strategy is projected to help increase in terms of gas transmission pipeline length (km) from 16,200 km in FY20 to 27,430 in FY25. It is also projected to help increase CNG stations across the country from 2543 in FY20 to 10,000 in FY26. The policy is also projected to help increase LNG stations across the country

Commercial Vehicle www.commercialvehicle.in | February 2022

Conference extracting gas. LNG has been approved as fuel for highways with approximately 200 LNG stations proposed in the next three years and city gas distribution expanded from 78 to 400 districts with another 250 being tendered. LNG is being looked at as a fuel for long haul transport including the buses.

from 50 in phase 1 to 1000 in phase 2. The policy focused on increase in biofuel production capacity is expected to help boost ethanol supply and the one focused on EV charging stations will help commission highways with EV charging infrastructure. There are two hydrogen refuelling stations which are currently established at the Indian Oil R&D centre. A financial outlay of USD 106 million has been proposed from 2021-24. Mentioning that the ministry of Petroleum and Natural Gas is working towards wider acceptance of CNG fuel expanding from existing 2300 stations to over 10,000 stations by 2025, Kumar opined,”The future of Indian mobility will be decided by penetration of large numbers of gas vehicles. I believe that this decade we’ll see the emergence of many novel fuels which will help us progress in a sustainable manner on the fuel road map”. While speaking about demand and supply of natural gas in India, Praveen Kumar Pandey, Senior Vice PresidentIndraprastha Gas Ltd., mentioned that India imports LNG and it’s percentage share

Commercial Vehicle February 2022 | www.commercialvehicle.in

Praveen Kumar Pandey, Senior Vice President- Indraprastha Gas Ltd. has increased to ~ 60 per cent FY21. He also spoke of the impetus on infrastructure boost to in turn propel gas demand and consumption. There are 10 LNG terminals which are under development with the pipeline network being extended by 13000 kms. He hailed the incentives in place for exploring and

Alternative fuel roadmap Availability of multiple alternate fuel technologies will lead to adoption of fuel type based on specific application, opined Som Kapoor. Electric, biofuel, and natural gas, for example, have a varying impact on operational capacity, performance, cost and emissions. According to Kapoor, by 2030, multiple alternate fuel technologies will be available for each vehicle segment thereby making selection of fuel based on operational and commercial feasibility. Ray drew attention to fuel production by recycling plastics. While pointing at the plastic-tofuel project in Pune which derives fuel from plastic generated in the city, Ray insisted on considering biodiesel and green diesel

Conference

as alternate fuels. The need is to look at CSR disruptive areas such as EV retrofits. and decentralised biodiesel. Promoting the use of LNG as alternative fuel,s Kumar requested commercial vehicles manufacturers to adopt LNG as important fuel, especially for long haul trucks as it is done in Europe. According to the Hydrogen Council Vision shared by Ramakumar, there would be 400 million cars, 15-20 million trucks and five million buses by 2050 for which 330 MTPA hydrogen is needed. He also presented a comparison wherein Fuel Cell Electric Buses(FCEBs) made a net positive impact compared to Battery Electric Buses(BEBs). Highlighting the advantages of LNG as an alternative fuel, Pandey mentioned, LNG offers ease and safety of non-pressurised storage or transport. LNG achieves higher reduction in volume than CNG. The volumetric density of LNG is 2.4 times greater thank that of CNG (at 259 bar). He added that organic waste can be purified to get automotive fuel grade methane which when compressed can work as Bio-CNG.

Promoting flex-fuel According to Ramaprabhu,the need is for defining fuel quality and specifications by BIS. The test agencies need to amend the proposed regulations and safety standards, and customer acceptability. It was said, multiple inter-dependencies on customer, automotive manufacturers, fuel suppliers and government further complicate the alternate fuel adoption road map of India. According to Kapoor, the customer will remain the same but the application will change quite drastically. Both the speed and the quantum of change in the next five years will be more than what the speed of change has been in the last 50 years.

Global alternative fuel road map As per the study shared by Kapoor, economies across the globe have adopted a fuel based approach or emission reduction based approach for designing the alternate fuel road map. Countries like Brazil, for example, started ethanol blending in the 1930s and mandated 27 per cent ethanol blending in 2017. Japan developed its first hydrogen fuel cell car in 2014 and is more focused on hydrogen as the future of automotive fuel. California focused on regional adoption and incentives for pilots. Canada is more focussed on regulating and incentivising the end users. Mast elaborated on the fuel cell to ICE usage globally. He pointed at the EU Green Deal initiative aimed at reducing 90 per cent transport related GHG emissions by 2050 compared to 1990 levels. There are other world wide credit programs and legal sales quote to promote Zero and Low Emission Vehicles (ZLEV) that need to be bench marked, he concluded.

Commercial Vehicle www.commercialvehicle.in | February 2022

Conference

Decarbonisation and Digitalisation A Busworld webinar on decarbonisation and digitalisation focused on the bus industry’s SDGs. Deepti Thore reiterates the focus on carbon neutrality and challenges en route.

Jan Deman. Managing Director, Busworld Foundation.

Kulwant Singh, Advisor Busworld Foundation.

Akash Passey, President Bus Division at VECV.

ecarbonisation and digitalisation were recently identified as essential areas for driving the recovery of surface transport (by road) at a Busworld webinar. In the post-pandemic era, the industry is determined to realise its Sustainable Development Goals (SDGs) of which carbon neutrality is a crucial one. To address the challenges faced by the passenger mobility segment in attaining the goals, Akash Passey, President Bus Division at VE Commercial Vehicles mentioned that decarbonisation and digitalisation are interconnected. “Decarbonisation is the most effective and reliable road to the goals of carbon neutrality, climate neutrality, and a decarbonised global economy,” said Shivayogi C Kalasad, Managing Director, Kerala State Road Transport Corporation (KSRTC). Making a case for better air quality and its direct correlation to the quality of life, Kulwant Singh, Advisor - Busworld

Commercial Vehicle February 2022 | www.commercialvehicle.in

Shivayogi C Kalasad, Managing Director, KSRTC.

Foundation, public bus transport looked at India and South Asian cities. He hailed the reduction in greenhouse gas emissions with the use of fewer resources and lessening of CO2 emissions per passenger, by the bus industry, in comparison to individual motorised transport. He exclaimed that the industry would not rest on its laurels though. “Despite this great record of accomplishment, public transport companies are determined to contribute even further to transport decarbonisation by way of

Anil Kamat, Managing Director, MG Group.

replacement of the oldest fleet with modern and highly efficient vehicles,” he said. Here, the role of alternative fuels and electric propulsion systems was deemed crucial. The SDGs Shivayogi highlighted that out of the 17 SDGs seven were directly or indirectly related to the transport sector, both rural and urban. While some of these are linked with transport directly, many of these targets incorporate transport by recognising the importance

Conference that there has to be a win-win for all the stakeholders, that is the customers, bodybuilders and OEMs and the government in the implementation of SDG,” Kamath concluded.

of accessibility in achieving the advances in education, healthcare and other critical needs. To end hunger, to achieve food security, improved nutrition and promote sustainable agriculture transport assume importance. To make the cities and human settlements allinclusive, safe, resilient and sustainable, and ensure urgent action to combat climate change and its impact, the role of the Paris Agreement in ensuring carbon neutrality by the year 2050 was highlighted at the lecture. Since the bus and coach building industry is highly fragmented, policy framework change and initiatives are required on integrating the SDG goals with the statutory bus body code parameters, according to Anil Kamat, Managing Director at MG Group. The bus and coach building industry is in a distressing crisis situation, and motivating them into following SDG goals will require incentivisation, he opined. It is equally important that bus operators and customers have to be made aware of SDGs initiatives and also equally incentivised, he opined. Currently,

customers are therefore forced to be more focused on capex centric purchase decisions rather than SDGs. Converging the bodybuilder fraternity and educating them on SDGs is vital in addition to making them inclusive members of the implementation value chain. Longer vehicle lifetime and lightweight exercises help customers reduce component weight and in turn lower raw material consumption. Lower greenhouse gas emissions over the full lifecycle of products, for example, by offering fuel economy through lightweight via advanced high strength steel and composites is an important approach, he pointed out. “MG group are of the profound view

Attaining The SDGs According to Jan Deman. Managing Director, Busworld Foundation, the transport industry based out of Belgium, Europe, as a whole is responsible for 20-24 per cent of all CO2 emissions alone. 85 per cent of all emissions coming from passenger transportation is attributed to individual cars and in comparison, the bus industry emits an estimated 1.25 per cent. “The need is to move towards low or zero carbon emissions by switching to battery electric, fuel cell, hydrogen-powered or hybrid drivetrains. The need is to collectivise the transport modes,” he asserted. The number of vehicles which are registered out in India is enormous and most of them are two- or four-wheelers also known to play a part in road bottlenecks. According to Passey, three out of the 10 worst cities in the world on congestion today belong to India. Speaking about moving from individual transport to shared mobility, Passey opined, “Moving to alternative fuels, CNG primarily and electric in the city segment

Commercial Vehicle www.commercialvehicle.in | February 2022

Conference measures to improve upon fleet to also adopting an afforestation programme as a boost to the ecosystem. Speaking of decarbonisation from bus and coach builders perspective, Kamat, shared best practices and commented, “MG has been focused on lightweight elevating our products to meet decarbonisation goals. Finally, a design intent on lightweight and making the right choice of materials as well as selecting SDG focused supplier partners is paramount here.” An efficiently engineered and optimised body solution would help chassis manufacturers in meeting their goals as well, he advised.

is important.” He explained, for long-distance, diesel will continue as the mainstay. However, for the city, decarbonisation will begin by transitioning to emobility. “As Indians, we play our part and as an OEM also, we play a small part in contributing to the environment by bringing inefficient decarbonised products and offering technological improvements. Passey added that the transition of diesel to BSVI compliance and the work in progress in India on EVs will be a boon going forward. To attain SDGs, Kalasad stressed the need to incorporate alternative fuels and parallelly focus on the fleet transition to e-mobility. The need is for

Commercial Vehicle February 2022 | www.commercialvehicle.in

improved efficiency in the transport sector and to opt for a modal shift, he stated. Commenting on the upcoming transformational policies, he cited the need to look at urban planning as a holistic approach. A KSTRC case study was presented wherein BSVI vehicles were inducted into the fleet. As part of the induction process, the State Transport Undertaking (STU) organised routine tailpipe emissions tests besides mandating Pollution Under Control (PUC) certificates for the vehicles every six months. To be displayed on all buses, it must be supplemented with the provision of upgraded smoke density meters installed across depots. KSRTC is going beyond

Adopting digitalisation Digitalisation is the new normal, all agreed. According to Passey, key technologies and drivers of digitisation would be operations, maintenance, HR management and work organisation, and customer services. Stating that VE Commercial Vehicles (VECV) has majorly digitised its uptime centres, Passey pointed out that digitisation had helped the company not only operate but also manage the performance of its buses in any part of the world. “With the launch of BSVI, we were the first manufacturers to digitise heavily and offer Eicher live for our customers, our trucks and buses. This is helping customers for fleet management and to keep the uptime as high as possible,” he claimed. Passey also added that digital services have led to many partnerships and communications improving. The public transport game field has changed as the Original Equipment Manufacturers (OEMs) are pressing more on services a responsibility erstwhile resting with the operators.

Conference The public sectors are known to lag in incorporating digitalised initiatives, highlighted Kalasad. The need is to move away from the mindset of bureaucracy or “Sarkari” files and adopt digitalisation, he admitted. Some of the digitalisation initiatives carried out by KSRTC include online Inter-Corporation Transfer and Counselling Application, Electronic Ticketing Machines (ETM) with Dashboard, Contactless Counter m-Ticket at Kempegowda International Airport, in Bengaluru, Customer Relationship Management (CRM) system-office implementation of e-filing, Grievance Management Application, Women Safety Mobile Application with ITS, student bus pass application and an advanced reservation system. Shivayogi also stated that the STU is also looking at other opportunities which include the use of alternative fuels including ethanol blends and other bio-fuels to capitalise on Karnataka’s rich reserves. KSRTC buses will have a minimum of 10 buses running on ethanol in the near term. “Unless the government stipulates uniform digital adaptation it will not be feasible to satisfy the SDGs,” quipped Kamat. Policy intervention Policy support initiatives at the national level need to be coherent and jointly aimed at supporting the decarbonisation of public transport. Policy coherence is also necessary to protect the investment of public transport authorities and operators’ investments into the infrastructural upgrade, procurement of vehicles and equipment that must be supported by way of

stable conditions and clarity on the roadmap for fuel taxation and subsidies among other aspects. The digitalisation of public transport presents new opportunities for transport companies. These entail offering customers integrated digital services along the service chain and optimisation of transport operations. There is an equal need to develop new solutions for the public transport of the future. These

revolve around systems to facilitate electronic ticketing, navigation and guidance through the public transport system. During travel, for example, passengers must be seamlessly informed of any disruptions and or delays in the operator service with the help of embedded technology in vehicles or at bus terminals. Using transport network models to simulate traffic systems can help to optimise public transport and plan new dynamic and individualised mobility services.

Commercial Vehicle www.commercialvehicle.in | February 2022

Conference

The roadmap Talking about transitioning to the electrification of buses and the availability of green electricity, Deman said, “If we look at the electricity production, globally, about 63 per cent of that electricity production is still carbon-based. We need to move to the production of green electricity, and then green mobility will be a consequence of that.” Another challenge faced by the industry is the Total Cost of Ownership (TCO) of an electric bus compared to a diesel bus on a much higher end. Also, the acquisition cost of an electric bus is high considering the installation of charging infrastructure and the grid capacity augmentation to meet the requirement. With

Commercial Vehicle February 2022 | www.commercialvehicle.in

the cost involved being high, operators are reluctant to switch to e-buses, it was said. As per the data from an international transport agency(not revealed), passenger transport will only meet the zero-emission target by 2070, which is not corresponding to the SDGs or the Paris agreement. “The need is to combine electrification of bus fleet with other measures including reducing carbon emissions coming from mobility including reducing the car miles by replacement with cleaner modes like walking or cycling. The collectivisation of transport will also help in reducing the carbon emissions in the industry,” he stressed. This can be prioritised with the help of digitalisation offering comfort

and ease for public transport modes that are multi-modal. This involves making one ticket applicable for all modes including bus, train among others. Pointing at the standardisation of key aggregates being one of the challenges when it comes to decarbonisation, Passey opined that partnering experts who can offer higher uptime to its consumers or operators will play an important role in driving the industry towards meeting its goals. He also gave the example of charging infrastructure for EVs where the partnership model is being looked at for OEMs. He drew attention to Fame I&II, Planned procurement under CESL, Production Linked Incentives (PLI) for battery production, vehicle scrappage policy and the increasing focus on clean energy generation as crucial drivers for the industry to attain SDGs. Kalasad drew attention to the ‘Electric vehicle & Energy Storage Policy’ formulated by the State of Karnataka in 2017. As per the policy, there are special initiatives that are undertaken for EV manufacturing which includes EV manufacturing parks/zones, migrating to EV environment, facilitation of manufacture of EV, battery and charging equipment. The policy also focuses on support for charging infrastructure, support for Research & Development (R&D), support for incentives and skill development. Some of the incentives and concessions offered under the policy include investment promotion subsidy, exemption from stamp duty, concessional registration charges, reimbursement of land conversion fee, subsidy for setting up of effluent treatment plant and exemption from tax on electricity tariff.

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