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STRAIGHT DRIVE
T
“The confidence of the CV industry and the truck and bus operators is worth appreciating”.
he challenges that began with demonetisation aren’t showing signs of easing yet. The fall of GDP in Q1 FY2020-21 GDP by 23.9 per cent adds a new perspective in fact. For the transport industry, which is often referred to as the reflection of the state’s economy, such a development could have much implication. It is already experiencing low business demand. Until the manufacturing and services sectors do not come out of the woods, there could be little that the transport industry could hope for. Until salaries are not restored to the pre-Covid levels, and the unemployed in the formal and informal sectors are able to get their jobs back, there is little that the transport industry could hope for. Its nature of business is such that it is linked with both, the formal and the informal sector. A silver lining, if were to be looked at as such, is the government acknowledgement for a local approach through ‘Atmanirbhar Bharat’. Its five pillars sound promising. Also, the changed definition of the MSME sector. As things unveil, the confidence of the CV industry and the truck and bus operators is worth appreciating once again. Their will to sustain, stay put, and find new ways to succeed is indeed rare. Bhushan Mhapralkar b.mhapralkar@nextgenpublishing.net
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what's inside Cover story 20
26
Volvo Buses merge with VECV In a surprise move, Volvo Buses India has merged with VE Commercial Vehicles (VECV).
Dealers in Distress CV dealers are a worried lot with business witnessing a significant dip.
05 Straight Drive Bhushan Mhapralkar 08 Letters 10 CV News JCB appoints Deepak Shetty n New ABB robotics facility n M&M ambulance camp n CV sales degrow n Seshu Bhagavathula joins Volta Trucks n EV support by MoRTH n Kinetic Green eyes e-comm. n BSIV vehicle registration allowed? n Frost & Sullivan global LCV market outlook n Ashok Leyland bags F&S award n BharatBenz Proserv Assam campaign n
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Collapsing school bus operators? Daimler India ‘Bus Care’ Three-wheeler ambulance for narrow lanes ‘Chartr’ contactless bus ticketing app.
We welcome feedback, bouquets and brickbats on how this magazine is shaping up. Write to us at cvonline@nextgenpublishing.net or visit us on www.commercialvehicle.in
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Commercial Vehicle September 2020 // www.commercialvehicle.in
R YOUICE VO
September 2020 Daimler India enters used CV market
36
Defining transport MSMEs
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Daimler India has entered into the used CV market.
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TN engages private bus operators? New AC buses for Delhi? ETrio eLCV Tata Motors Signa 4825.TK CEAT Tyres ‘ReadyAssist’ Tata Motors’ future ready vehicles M&M iMAXX telematics Meru business mobility app. Castrol 'Restart' and 'Headstart'
Transporters have been demanding the status of MSMEs with the hope that it would benefit them.
33 Stellar job by a Volvo Puller A massive 74-wheel Volvo FM 460 6x4 puller took one year to reach Kerala from Maharashtra Digitising public transport
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Digitising public transport has become of paramount importance amid the Covid-19 environment.
54 The electric bus outlook has changed The Covid-19 situation has changed the electric bus outlook. 58 Bus to a bright future
Delhivery acquires Volvo Trucks
49
Delhivery has acquired Volvo FM 4x2 tractortrailer combination for its long haul requirements.
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Commercial Vehicle www.commercialvehicle.in // September 2020
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Letters Commercial Vehicle Magazine
105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Tel +91 22 43525252 Email us at cv@nextgenpublishing.net
Survival of road freight industry
T
he article ‘Combating Covid-19’ in August 2020 issue of CV magazine made for an interesting read. Despite what is termed as the strictest lockdown in the world, the road transport industry not only managed to survive but hopes for the situation to get better sooner than later. Now that the fall in GDP is being put to - 23 per cent, the situation is becoming clear as to what the reality is. Amid such a background, the transport industry’s stellar work of not letting the country’s supply chain from breaking down needs to be appreciated. The stellar work by CV drivers needs to be appreciated. It is they who should have been given the status of frontline warriors due to the nature of their job much like those providing essential services. But then, the CV drivers have had no voice that the ‘powers be’ in this country can listen to. They are always on the move and do not make a lucrative vote bank or an effective lobbying group. The Covid-19 pandemic exposing the world to a new environment that is even more challenging and ruthless, it is time that the CV drivers and the transport industry are given the respect they deserve. Sumit Awasthi, Indore, Madhya Pradesh
Editor Test Editor Web Editor Correspondent Head-Design & Production Art Director Asst. Art Director Image Desk Production Supervisor Publisher Chief Executive Officer General Manager North & East
Bhushan Mhapralkar Aspi Bhathena Ashish Bhatia Deepti Thore, Deven Lad Ravi Parmar Mangesh Sawant Ajit Manjrekar Dipak Gaykar Dinesh Bhajnik Marzban Jasoomani Hoshang S. Billimoria Ellora Dasgupta
General Manager South
Girish Shet
Deputy General Manager
Chanchal Arora
North Regional Marketing Manager Salma Jabbar (Chennai) Marketing Manager
Minocher Parakh (Mumbai)
Manager Circulation - North and East Kapil Kaushik Subscription Supervisor Sachin Kelkar Tel +91 22 43525220 Apple Newsstand & Magzter Queries help@magzter.com Zinio Subscriptions Queries http://in.zinio.com/help/index.jsp Territory Sales Incharge (SIP) Mr. Srinivas Gangula (Hyderabad) Cell +91 09000555756 Territory Sales Incharge (Circulation) Vidyasagar Gupta (Kolkata) Mob: 09804085683
Frontline warriors
T
he cover story in the August 2020 issue of CV magazine titled ‘CV drivers: Frontline warriors?’ was an eye-opener of the sorts. Not only did it make for an interesting read, it also reflected reality out there amid stark developments triggered by a shrinking economy and the growing menace of the pandemic. It is worth applause that the CV drivers have been going about their work without any complaint or announcements like the bank unions that they will go on strike if their demands are not met. With no force multiplier in their favour, the CV drivers continue to be the least respected. Their working standards continue to be ignored and their families continue to remain beyond the generous eyes of many. Agreed that CV drivers are not respected even in countries like the United Kingdom, the fact is, we cannot say that let us not respect CV drivers because they are not respected in the UK. They have families to look after. They are as human as any of us. So, let us sit back for a minute and think of these souls that criss cross this vast country without much thought for their safety; much thought for what will happen to their families if they were killed on the road, and about how their upliftment would lead to the upliftment of the entire society.
Sahil Malik, Gurgaon
Regional marketing offices Next Gen Publishing Pvt. Ltd. 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India Tel +91 22 43525252 26 B, First Floor, Okhla Industrial Estate, Okhla Phase III, New Delhi - 110020, India Tel +91 11 42346600/78 Fax +91 11 42346679 Unit No:509, 5th Floor, ‘B’ wing, Mittal Towers, MG Road, Bengaluru -560001, India Tel +91 080 66110116/17 Fax +91 80 41472574 Cenetoph Elite, No.5, Cenetoph 1st street, Teynampet, Chennai - 600018, India Tel +91 044 421-08-421/044 421-75-421 Devendra Mehta - Mob No.- 09714913234 Ahmedabad S.No.261/G.L.R.No.5, East Street,Camp Pune - 411001. Tel + 91 20 26830465 iews and opinions expressed in the magazine are not necessarily those of Next V Gen Publishing Pvt. Ltd. Next Gen Publishing Pvt. Ltd. does not take responsibility for returning unsolicited manuscripts, photographs or other material. All material published in COMMERCIAL VEHICLE is copyright and no part of the magazine may be reproduced in part or full without the express prior written permission of the publisher Printed by Marzban Jasoomani Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013. Published by Marzban Jasoomani on behalf of Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, Printed at Kala Jyothi Process Pvt. Ltd, 1-1-60/5 RTCX Roads, Hyderabad - 20. Published at Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013. All readers are recommended to make their own independent enquiries before sending money, incurring expenses or entering into commitments in relation to any advertisement appearing in the publication. Commercial Vehicle does not vouch for any claims made by advertisers for their products and services. The editor, publisher, printer and employees of the publication shall not be held liable for any consequence in the events of such claims not being honoured by the advertisers. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only. Editor Bhushan Mhapralkar
Pen down your views and queries to Commercial Vehicle, Next Gen Publishing Pvt. Ltd, 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, INDIA. or Login to: www.commercialvehicle.in or Email us on: cv@nextgenpublishing.net
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Commercial Vehicle September 2020 // www.commercialvehicle.in
News
JCB appoints Deepak Shetty
J
CB India has announced the appointment of Deepak Shetty as Deputy CEO and Managing Director of JCB India Limited. Having served as Executive Vice President Sales, Marketing, Product Support and Business Development, with the company for two years in India, and as the managing director of JCB’s Global Excavator business in the UK for four years, in the role of Deputy CEO and MD, he is expected to lead the company to grow amid a very dynamic market environment and in the wake of some highly unprecedented disruptions. Replacing Subir Kumar Chowdhury, who retired after working at JCB for 15 years, Shetty will take over the reigns of the company from early next year.
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New ABB robotics facility
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o facilitate digital transformation of the manufacturing sector in India, ABB India has opened a new robotics facility at its Nelamangala (Bangalore) factory premises. It is spread over 3,600 sq.m, and designed and developed to help ABB India deliver robotic applications and digital solutions for a variety of Indian industries. Apart from a modern shop floor, which could double the company’s capacity by running proof
of concepts and factory acceptance tests for 1000 ABB robots every year, the new robotic facility also has a demonstration centre to showcase its latest technologies in robotic welding, glueing and material handling.
M&M ambulance camp M
ahindra & Mahindra Ltd. (M&M) conducted a 10-day ambulance camp by providing free sanitisation and vehicle cleaning services recently. Held between August 05, 2020 and August 14, 2020, the camp also carried out a comprehensive check-up of vehicles for free. Sanitising 40 high-touch points inside and outside the ambulance body with the use of sodium hypochlorite solution, the camp saw M&M offer free car wash with the use of water-saving
Commercial Vehicle September 2020 // www.commercialvehicle.in
‘m-EcoWash’ solution, which includes specialised cleaning compounds and just one litre of water. The camp was carried out at its authorised service centres across India.
news
CV sales degrow
T
he vehicle registration data released by the Federation of Automobile Dealers Associations (FADA) on July 20, 2020, has shown that the CV segments have shown a drastic (-) 72.18 per cent decline on a Year-onYear (YoY) basis. The three-wheeler segment, as per the data released, recorded a (-) 74.33 per cent decline on a YoY basis. Tractors and small CV sales, recorded a positive trajectory as per the data, recording a growth of 37.24 per
cent. A good monsoon, according to the FADA sources, is expected to bring the rural economy up to speed. Of the opinion that financial institutions are limiting the sale of CVs by being completely risk-averse, the sources added that industry-specific demand boosters should be rolled out by the government. In favour of a scrappage policy, the FADA sources are hoping sales to pick-up during the upcoming festive season.
Seshu Bhagavathula joins Volta Trucks
S
eshu Bhagavathula has joined the board of Volta trucks post leaving the position of President-New Technologies and Business Initiatives from Ashok Leyland. Effective immediately, he will take over this new position at Volta trucks and also act as an advisor to the Volta Trucks Management Team. With his extensive global knowledge of the automotive and commercial vehicle industry, Volta Truck is confident that Seshu will help guide
the company while it transitions from a start-up to the manufacturer of the first purpose-built fullelectric large commercial vehicle. Having an indepth understanding and experience, especially in the field of electrification, Seshu’s past experience also includes working as a Vice President, Research and Development for China’s Great Wall Motor Company as well as a number of senior director and managerial roles within Research and Development for Daimler Trucks and DaimlerChrysler AG.
EV support by MoRTH
T
o lower Electric Vehicle (EV) acquisition costs versus ICengine vehicle acquisition costs, the Ministry of Road Transport and Highways (MoRTH) has allowed the sale and registration of such vehicles sans batteries. This move, claim sources, has been done to take out the cost of batteries right at the beginning, and which amount of a substantial 30 to 40 per cent of the total vehicle cost. While some have termed it weird as batteries would still have to be bought even if it is at the dealer level, the move, they term will be successful only if a massive battery swapping infrastructure could be put in place quickly. Expressing that better alignment with existing schemes, particularly the FAME II, will be required, Udai S. Mehta, Deputy Executive Director, CUTS International, explained that to be effective, the scheme will need clever implementation.
Commercial Vehicle www.commercialvehicle.in //September 2020
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News
Kinetic Green eyes e-comm.
E
-three wheeler maker Kinetic Green is eyeing the growing e-commerce segment for its products in the last mile delivery space. It is looking at tapping smaller entrepreneurs like vegetable vendors, e-commerce delivery startups, and sprayer vans among others. Hopeful of the prices of e-rickshaws coming down due to the government move, the company is confident of the emergence of a new EV three-wheeler segment under the e-commerce head with good sales numbers to boast of.
BSIV vehicle registration allowed? T he Supreme Court (SC) has approved the registration of BSIV vehicles sold in March 2020, claim sources. It has allowed the registration of vehicles that could not be registered due to lockdown, they mention. The order was issued against a petition filed by the Federation of Automobile Dealers Associations(FADA) by giving details of such vehicles, they inform. Stating that all registrations on e-portal, including temporary registrations, are allowed, sources explain that the relaxation excludes the Delhi-NCR region however.
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Frost & Sullivan global LCV market outlook
R
eleasing its Global Light Commercial Vehicle (LCV) Market outlook, Frost & Sullivan has mentioned the respective segment in India will be driven by the growing stronghold of e-commerce. Stating that the segment will experience uptake in the last-mile connectivity
Commercial Vehicle September 2020 // www.commercialvehicle.in
space during the next five to 10 years, the report has underlined the importance of future-driven technologies like connectivity, advanced safety, and automation in LCVs. It has also highlighted the growth of electric light commercial vehicles over the next three to four years.
news
Ashok Leyland bags F&S award Collapsing
school bus operators?
A
shok Leyland has bagged the Frost and Sullivan(F&S) 2020 GCC Light Commercial Vehicle Customer Value Leadership Award for its LCV truck, ‘Partner’. This is the basis of the vehicle experiencing high demand in the GCC countries. Offering a strong value proposition among the seven international players in the respective GCC countries, the Partner scored its way to the top on five criteria, including customer and business impact. F&S’s industry analyst team conducted extensive and in-depth analysis by carrying out interviews and performing primary market analysis for the award.
W
BharatBenz Proserv Assam campaign D
aimler India Commercial Vehicle (DICV) reached out to BharatBenz CV customers in the remotest corners of Assam through its dealer, Abutani Trucking, as part of its ‘Proserv Campaign’ recently. The 15-day exercise included vehicle health check-up, delivery of survival kits in parallel against the backdrop of heavy rains and the Covid-19 situation, distribution of rations and groceries to the poor, and the distribution of protective items free of cost to the underprivileged and elderly in the state. About 2600 BharatBenz CVs participated in the campaign. They were attended to in a sanitized environment as per the guidelines laid by the government and WHO.
ith schools across the country closed well beyond the start of the new school calendar in June, the operators of school buses are claimed to be on the verge of collapse. In the state of Maharashtra alone, an estimated 50,000 school buses have been without work since late March 2020. The number of staff connected with these buses is said to be around 1.5 lakh. With little hope of schools reopening soon, the Bus & Car Operators Confederation of India (BOCI) and School Bus Owner Association (SBOA) have urged the Government of Maharashtra to provide relief in the form of staffer’s salaries for the entire lockdown period, waivers in taxes, waiver on interest, an extension on loan moratorium, deferment of motor insurance, cancellation of parking fees levied by the local and regional municipal and other governing bodies, an increase in the age limit of school buses from eight to 20 years for those in Mumbai, and from 15 to 20 years for those in the other parts of the state, provision of GST input credit on purchase of new bus, and banning of illegal private vans plying as school buses.
Commercial Vehicle www.commercialvehicle.in //September 2020
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News
Daimler India ‘Bus Care’
‘Chartr’ contactless bus ticketing app.
D T
o enable bus operating customers to have a smooth start, Daimler Bus India has been running a ‘Bus Care’ program since July 2020. Having covered over 1400 buses and 1900 drivers in 75 locations, the program has provided free vehicle check, driver training on Covid-19 preventive measures, distribution of personal hygiene kits, thermometers
and disinfectant sprayers. Being run with the help of its dealers, the ‘Bus Care’ program, aimed at enabling bus operators to take care of their staff and passenger safety through hygiene best practices and preventive measures, has been reaching out to BharatBenz and Mercedes-Benz bus operators through service camps and onsite support.
Three-wheeler ambulance for narrow lanes
G
ujarat-based Atul Auto has launched a low-cost threewheeler ambulance to help transport Covid-19 patients. Donating one such ambulance to the Rajkot Civil Hospital, the company is keen to offer the vehicle to public and private takers in regions where roads and lanes are narrow and the population density is high. Powered by a diesel engine, the three-wheeler ambulance has been specifically engineered for
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Commercial Vehicle September 2020 // www.commercialvehicle.in
manoeuvring through tight spaces and measures six-feet in length. It has a stretcher and an oxygen cylinder onboard. It has a seating area for patient’s relatives and medical attendants.
eveloped by the Indraprastha Institute of Information Technology (IIIT), Delhi, the ‘Chartr’ contactless bus ticketing app., post the conduction of three-day (August 05, 2020, to August 07, 2020) public trial in all the Delhi Transport Corporation (DTC) buses as well as the cluster buses on route 473, has been approved for higher trials on 6500 buses. Aimed at passenger and staff safety, the app. allows commuters to board the bus and scan a QR code near the conductor’s seat for tickets. It provides stoppage information on a particular route by typing the route number on the app. It also provides passengers information about bus timings and occupancy apart from telling them if the bus expected is a DTC one or a Cluster one. The app. also provides passengers information regarding fare apart from the route detail for metro if the commuter types in the starting point and the destination.
news
TN engages private bus operators?
ETrio eLCV
T
he Tamil Nadu State Government has allowed its transport undertakings to hire and operate private buses on routes where government buses do not operate, claim sources. They mention that the decision was taken to facilitate the e-bus program. Informing that the move has not gone down well with transport unions who see it as a step towards privatisation of bus services, sources said that necessary changes were made to the MV Act. The decision, sources added, followed the release of the draft of this amendment in January, 2020.
E
New AC buses for Delhi? T
he Delhi Government, claim sources, is looking at inducting 250 AC buses in the next two months. Of these, 93 would be BSIV emission compliant and registered in-line with the Apex Court ruling, they mention. The state government last year inducted 1,152 new buses out of the previously announced 4000 buses. The number of total buses in the cluster scheme is said to be 2,900 buses. Some 1,000 buses of these are standard floor buses that were introduced in batches over the last one year. Apart from these, the state government is also said to be planning induction of another 1,000
AC low-floor buses in the cluster scheme. The cluster fleet already has 6,223 buses. The 250 AC buses will add to the fleet amid the followance of health guidelines like social distancing that would mean each bus carrying only half the number of passengers.
stablished in 2005, Hyderabad-based ETrio has announced the launch of certified retrofitted electric Light Commercial Vehicle (eLCV). Based on a Tata Ace chassis, the eLCV is claimed to be the country’s first, and runs on lithium-ion batteries that gives it a range of 120 km on a full charge. Retrofitted at the startup’s Hyderabad facility, which has the capacity to build 5,000 such vehicles per annum, the eLCV is said to ensure 60 per cent saving on the operational expenses. Aimed at last-mile deliveries in the e-commerce space especially, the eLCVs, according to the company, have received positive response. Claimed an ETrio source that they have received orders for 1200 eLCVs. The price of each eLCV is approximately Rs.7.75 lakh (on roadDelhi).
Commercial Vehicle www.commercialvehicle.in //September 2020
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News
Tata Motors Signa 4825.TK
T
ata Motors has launched a new Signa 4825.TK 47.5-tonne multi-axle tipper truck for surface transport of coal and construction aggregates. Offering more load carrying capability per trip with its 29 cu. m. box body, the tipper, designed and engineered for higher productivity, faster turnaround, and lower TCO, has three drive modes -light, medium and heavy, to ensure optimum balance between performance and efficiency. Powered by Cummins ISBe 250 hp 6.7-litre BSVI diesel engine mated to a heavy-duty G1150 nine-speed gearbox, the tipper, had in 10x4 and 10x2 configurations, features a spacious (suspended) sleeper cabin that has been crash tested, tilt and telescopic steering system, three-way mechanically-adjustable comfortable driving seat and easy-shift gears. It also features Hill Start Assist (HSA), Engine Brake, iCGT brake, a
CEAT Tyres ‘ReadyAssist’
sensor-based system that anticipates the possibility of the vehicle toppling over. Warning the driver in time to prevent such a mishap, the vehicle has ‘Fleet Edge’ telematics as standard.
Tata Motors’ future ready vehicles
C
EAT Tyres has partnered with ReadyAssist to provide Road Side Assistance (RSA) program. Marking CEAT’s entry into a new business segment, the partnership involving ReadyAssist is aimed at enhancing the tyre maker’s business model towards its customers. An extension of the recently launched CEAT doorstep services, the RSA program starts at as low as Rs.200 for a puncture repair at the doorstep. It also provides complimentary sanitisation of key touchpoints of the vehicle and is currently being rolled out in Bengaluru and Hyderabad. To be made available in 20 cities across India soon, the program also includes battery jumpstart, key unlock assistance, minor on spot repair, emergency fuel delivery and towing service. The program could be availed through a hotline number.
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Commercial Vehicle September 2020 // www.commercialvehicle.in
H
ot on the heels of the introduction of the Signa 4825.TK 47.5-tonne multi-axle tipper truck, Tata Motors has announced that it will very soon present a future-ready range of CVs. These would feature ‘Premium Tough’ design language and have a GVW between subone tonne and 55-tonnes. Powered by efficient drivetrains, the future ready CVs, based on the ‘Power of 6’ value proposition based in terms of design and development, will lower the TCO even further, improve earning potential, enhance comfort, connectivity and performance among others. They would also accompany bumper to bumper enhancements for better revenue earning potential through superior fluid efficiency, driving comfort and world-class connectivity.
news
M&M iMAXX telematics
Castrol ‘Restart’ and ‘Headstart’
O
ffering a new telematics platform, iMAXX, for its CVs -- the Blazo, Furio and Cruzio models especially, Mahindra & Mahindra (M&M) is keen to extend better revenue earning ability of its customers. Taking into account the dynamics shift due to BSVI, the new telematics platform presents better predictability, managementability and powerful insights on vehicle health and performance through telemetry technology like Dual CAN (Controller Area Network) and 4G. It would also provide predictive business and engineering insights. In other news, M&M has inked an MoU with REE Automotive to development and manufacture electric-CVs for global markets by leveraging REE’s EV corner module and modular platform technology for integrating powertrain, suspension and steering components
in the vehicle wheel arch. To this, M&M would apply its expertise in vehicle design, engineering, sourcing and manufacturing. Aiming to address global customer needs for 200,000 to 250,000 e-CVs over the next few years, the arrangement would look into scalability and relevance concerning light and medium-duty CVs, shuttles and cabs among others.
Meru business mobility app. C
ab company Meru Mobility Tech Pvt Ltd. has introduced a new business mobility app. for Android and iOS mobile to provide a simpler and more personalised customer experience. The new app. has a ‘Meru Switch’ feature, which makes for a seamless booking experience. It helps choose between personal and corporate rides. The app., with the latest UI and UX interface, enables customers to select the ride of their choice for city and outstation travel. It also helps to illustrate Meru’s new products and services. For employee transportation and car rental services, Meru has integrated ‘MeruBiz’ on its technology platform. It is a
feature, corporates can now book for point to point travel, airport transfers, car rentals, outstation travel, and transportation for their employees. The app. also enables Meru EVGO services for city and outstation travel. Making clean and green technology easily accessible for its customers for daily commuting, Meru is also integrating Mahindra’s premium ride share services GLYD to expand its existing EV fleet to over 300 vehicles.
L
ube major Castrol has launched two new initiatives, ‘Restart’ and ‘Headstart’, to help manufacturing companies address their lubricantrelated requirements as they resume operations. The ‘Restart’ initiative is led by a dedicated team of technical specialists who provide remote assistance and virtual technical support to manufacturers in the industrial and heavyduty space to test the condition of their lubricants. The ‘Headstart’ initiative, at the other end, discusses the latest developments and best practices in the area of lubrication across industries by hosting a series of technical and interactive webinars. The webinars involve global experts to discuss topics like rust protection, heavy-duty engine oils and specific topics for different industries.
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MAGAZINE THE POWER OF READERSHIP MAGAZINES! up by 0.9 crores - IRS Q1 2019 MAGAZINES EMERGE AS THE SUPERHERO AGAIN! All media is growing, and Print continues to grow despite the general belief that Print is declining. Readership is largely influenced by two things - literacy level and your disposable income. If you have money, then only will you buy a newspaper. Luckily in India, both those things have moved upwards. Ashish Bhasin, CEO - Greater South and Chairman & CEO - India, Dentsu Aegis Network and Chairman, MRUC I am very happy that Print is growing across all languages, and that Print titles in Digital are doing well too. The Print industry in India is still robust and effective, unlike in the Western world. Shashi Sinha, CEO, IPG Mediabrands, India What is disappointing is the fact that niche publications that serve an important segment have consistently been ignored. A different methodology must be used to ensure correct findings for such publications, but sadly both Neilsen and the MRUC Technical Committee have so far not done this.� Hormusji Cama, CEO, Mumbai Samachar I am happy to see that Print numbers are growing because it also proves the point that everything is not wrong with Print, and Digital is not the only way to go forward. It justifies the argument that Print has an established sort of acceptance. Indranil Roy, CEO, Outlook Group
PRINT IS GROWING No. of additional readers added since IRS 2017 Dailies - 1.8 crores Magazines - 0.9 crores Total number of Print Readers - 42.5 crores
Magazine Advertising actually works! *INDIAN READERSHIP SURVEY (IRS) 2017 : BETWEEN 2014 AND 2017, MAGAZINES SAW A 75% INCREASE WITH 38 MILLION NEW READERS.
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Volvo Buses merge with VECV In a surprise move, Volvo Buses India has merged with VE Commercial Vehicles (VECV).
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t was in 1996 that Volvo entered India with an intention to manufacture trucks that would be many generations ahead of the trucks available in the market then. The trucks that rolled out of the Hosakote facility on the outskirts of Bangalore stirred a change. It was nothing short of a revolution. The bus business of the company followed almost a decade and a half later. It shared the Hosakote premises with the truck business and
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Deepti Thore started rolling out the famed B7R 12 m rear engine bus to a public that was used to front engine buses. Leaving for some attempts to introduce modern rear engine buses in India like the Neoplan low floor model by a Pune-based company, the Indian masses were oblivious to how far buses have grown in technology, comfort and safety. After leading the top end of the bus market in India through a variety of rear engine bus models including a hybrid
city bus, Volvo Buses India has called it quits. In a recent announcement, which surprising comes against Covid-19 situation and an economic environment that is said to be the most difficult after 1979, has it that the Volvo Buses India has merged with VECV’s bus business (they make front-engine buses for inter-city, staff, tourist, school, etc.) to form a new business vertical that would be headed by none other than Akash Passey, Senior Vice President,
All images are for representative purpose only.
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Akash Passey, Senior Vice President, Region International, Volvo Bus Corporation.
Region International, Volvo Bus Corporation and also Senior Executive Advisor to the Swedish India Business Council (SIBC), Stockholm. With another premium bus maker Scania having come to India
and left, perhaps not finding this market lucrative and against the deep restructuring of the CV business at Volkswagen Group, the departure of Volvo Buses in spirit at least from India does not bode well for the modernising Indian the bus market. Not after establishing the modern standard for buses in the country, both at the intercity and the city level. Coming at a time when the bus operators in India -- private and public, are experiencing much distress, the merger of Volvo Buses India with VECV’s bus division to form an allnew vertical under VECV springs many questions. The most important is, would India miss exposure to modern, technologically advanced, safe and comfortable buses hereafter? It will take a while before the all-new business headed by Akash Passey begins
to make its presence felt. It is expected to profit from the coming together of people from Volvo and VECV, which has had a joint venture with Volvo for trucks and engines. The sharing of their knowledge and expertise is expected to lead to new achievements and products that will be tailored for this market. The all-new business is also expected to ensure that the existing customers of Volvo and VECV get access to elevated standards of service and care. To operate the existing Volvo Buses India facility at Hosakote and the VECV facility at Baggad near Pithampur, the new bus business vertical headed by Passey as its President is expected to have as much involvement of Volvo Bus Corporation if not more. The transfer of Volvo Buses India has been debt-free, according to Passey and Vinod Aggarwal,
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VECV manufacturing facility at Baggad (Madhya Pradesh).
MD & CEO, VECV. Acquiring the Volvo Buses India business for over Rs.100 crores, according to the filling by VECV to the National Stock Exchange, the all-new bus business vertical will offer the widest range of transport solutions to its customers. To usher a new order in India’s bus industry, the merger transaction is expected to close in the next two months, according to Aggarwal. Of the opinion that rather than exit the Indian market, Volvo is further strengthening its position in this market, Passey mentioned that his relocating to India to head the new business vertical as part of VECV would result in better reach and exposure for Volvo as well as Eicher buses. A new horizon Certain to create a new horizon is the all-new bus business vertical at VECV. Manufacturing,
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assembling, distributing and selling premium rear engine Volvo Buses in India at one end, and manufacturing, distributing and selling mass-volume front engine Eicher buses at the other end, the all-new bus business has the potential to unleash many new possibilities. Safeguarding the interest of its existing customers, the new enterprise, coming alive in a dynamic Indian market environment backed by urbanisation, e-mobility and connectivity, will help maximise synergies and capitalise market opportunities. It will help volume growth as well by offering products and services that are complementary with Volvo Buses’ core product portfolio in select international markets. The all-new enterprise under VECV will absorb over 500 Volvo Bus India employees. The VECV already has between
12000 to 15000 employees. A creator of modern front and rear engine buses, the new entity under Passey will cater to heavy, medium and light-duty buses requirements, provide packaged solutions to private companies or institutes, and further strengthen VECV’s position as a bus maker. Apart from strengthening Volvo and Eicher bus positions in India, the new entity, under VECV, is expected to unleash new synergies. Announced Aggarwal, “VECV will be able to leverage synergies in the areas of product development, purchasing and manufacturing with access to Volvo Group’s world-class bus technology.” He mentioned further, “VECV’s strong presence in the Indian bus market with Eicher branded buses will be complemented by Volvo Buses’ prominent position in the premium bus segment.”
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Volvo Bus India manufacturing plant, Hosakote, Bangalore.
Drawing attention to the strong mutual trust and win-win ways of working between Volvo and Eicher, Aggarwal averred that the 12-year old VECV joint venture is a testimony to it. With collaborations the order of the day in the auto industry, the new kid on the block, the all-new bus business vertical, already has many factors working in its favour or it seems. Much would depend on how the VECV drives it forward with its understanding of the Indian customer mindset and the working of the local supply chain as the service network. Least said, VECV is already instrumental in helping the Volvo Group to source parts from India and base engines as well through VEPT. Synergies In terms of synergies, the experience of Volvo Group has helped VECV to turn out
Vinod Aggarwal, MD & CEO, VECV.
BSVI CVs in the Indian market. It helped VECV from the manufacture of EuroVI engines for the last eight years at VEPT, a joint venture between Volvo and Eicher at Pithampur. VECV is also a manufacturing hub for a UD light-duty truck model in India. The new Eicher Pro 2049 is expected to be exported as a UD light-duty truck to the Far East Asian markets very soon with EuroVI technology to boot. With the new bus entity under
its wings, VECV, as a CV major with a modern truck portfolio of between 4.9-tonnes and 55-tonnes, and a modern bus portfolio of over 150 models, stands to gain a good deal, in terms of synergies as well as an ability to flex its muscles in the tough domestic market as well as new export markets. Getting better at exploring Volvo’s reach in new export markets, VECV with the allnew bus entity under its wings, looks better poised to beat the cyclicity of its home market. It also looks better poised to save itself from the unprecedented developments like the pandemic that could result in severe distress for its customers’ almost overnight. Through the eyes of Volvo, and as Passey mentioned, Volvo Bus Corporation stands to gain better access to the Indian market, which all these years has been amounting to the
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Volvo hybrid bus.
sale of 500 buses per year on an average. This year has been perhaps the most dull for the Swedish bus major. It is therefore ironic that such an arrangement with long-term effect has come to happen now, at this juncture. Said Passey, “Going forward, customers and partners can expect the same high level of customer care and world-class products from both Volvo and Eicher brands.” The journey First to introduce a true bus chassis in India, according to Passey, Volvo Buses India has had an exciting journey in India. Not to be held back by the arrival of global competitors like Scania, Volvo Buses India was instrumental in the introduction of mid-premium brands like UD in India. Some 30 UD city buses continue to operate in the Hubli-Dharwad BRTS at present. Some UD buses are said to be operating in a few other cities too. The Volvo brand of low-floor 12 m city rear-engine premium city buses, including the hybrid ones,
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enjoying patronage in over 30 cities, Volvo Buses India has been successful in increasing its reach despite the price disadvantage against many customers’ social upbringing. Where Volvo Buses India proved to be the most successful was in the private inter-city bus space with its B7R, B9R and B11R. These buses were lapped up by some of the most dynamic public undertakings as well. In all, Volvo buses in India have covered over three billion kms in the last 20 years. They are found plying through almost every major city and town in India, with 400 plus operators and 70 plus service centres. More than one million plus commute daily on Volvo buses, according to Passey. “A leading name, when it comes to the public and coach transportation, Volvo Group feels privileged to have triggered the modernisation in a way by introducing the first modern bus on the Indian roads in 2001,” he quipped. Safety and modernisation With Volvo Buses India merging
into VECV’s bus division to form an all-new VECV bus business, it needs to be seen what changes take place in terms of further modernisation, safety and technology. With competitors like BYD eyeing a larger share of the market through their technological prowess, for legacy bus manufacturers like Volvo and VECV the battle lines are clearly drawn. As part of the merging of Volvo Buses India with VECV’s bus business to form a new vertical sans any transfer of debt, VECV, it is clear, is looking at shaping the Indian bus industry in its favour. It is confident that it will succeed. Explained Aggarwal, “The new venture will help generate opportunities for both Volvo and Eicher as the future unfolds.” With Volvo buses known to clock up to 10 lakh kms or even more without major repairs, and do 25000 kms worth of travel in a month, the new enterprise under VECV has its work cut out with the long-term prospect of the Indian bus market said to be highly positive. The presence of Eicher buses
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Eicher school bus
in the staff, road permit segment and various other mass-volume segments as mentioned above, should present Volvo an opportunity to explore new avenues and increase Volvo Bus Corporation’s reach to have a win-win position to look at. If Aggarwal is to be believed, the future holds a lot more possibilities and new opportunities in new segments. Currently, the Indian bus market is nursing a deep wound. Wounds that may take a long time to heal. Wounds that may reset new segment equations like electric buses despite the encouragement of the government. The road ahead clearly does not look smooth or unexciting. Passey is well aware of it. Mentioning that the current market dip is serious but temporary, he averred that the Indian bus industry is amongst the top three in terms of volume globally. Over the coming years, he opined that the bus industry will undergo big transformation on the basis of rapid urbanisation. “A very clear
need in India is for acquiring sustainable solutions as the demand for good quality bus travel rises,” he quipped. Challenges With efforts pouring in the direction of newer mediums of transport like metros and bullet trains that cost far more than it would cost to set up or modernise bus operations, the factor of bus transportation (or road transportation) seems to pale in comparison. The grandeur of a metro or a bullet train is too big to be missed. In comparison, an efficient BRT network like the one at Hubli-Dharwad does not get such brownie points. Neither does a modern Volvo B11R plying between Bangalore and Jodhpur. Amid challenges big and small, the bus market in India is poised to thrive. Thrive it will, and evolve. Expressed Passey, “To successfully serve the Indian customers for future we shall require access to globally relevant technologies. We will require high local agility.” “Through the new business arrangement, we will
progress,” he added. While Eicher would look at strengthening and modernising its LMD(light and medium duty) product portfolio and drive deeper into the heavyduty segment, Volvo would look at digging deeper into the premium bus segments. It would do so by further localising. One of its buses already uses an engine manufactured at Pithampur. Some such new arrangements could be put into practice. Already distributing Volvo trucks in India, VECV, through this development is set to gain a good deal in terms of technology, knowledge, expertise and market positioning. How it leverages them to carve out a niche is what will matter most. Explained Aggarwal, “With the Covid-19 pandemic and the social distancing norms in place, the need for public transportation buses and intercity coaches will rise.” “There will be higher demand to fulfill the capacity gap,” he concluded.
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Dealers in distress CV dealers are a worried lot with business witnessing a significant dip. Deven Lad
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here are an estimated 1000 plus CV dealers in India. These are franchises of six or seven CV majors. Chances are that there are more CV dealers if those catering to regional and local brands were to be taken into account. Even those that cater to the rising count of e-rickshaws among others. Most are in varying degrees of distress are facing the economic slowdown of 2019 and the Covid-19 situation of 2020. Their reason for distress may vary, but distressed they are for certain. A chat with Piyush Jain, a Mumbai-based SML-Isuzu dealer, revealed that he is badly affected. Eagerly waiting for the
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school season to start as a big chunk of his CV sales comes from school buses, Jain is very worried. “We have had no sales for the last four months,” he expressed as a matter of fact. Informing that the pandemic unleashed itself exactly when the school season begins, Jain averred that if such conditions persist for a few more months, it would be extremely difficult to stay in business. The bus operators, it is no secret, have been the worst affected when compared to the truck operators. Most suffered from having their buses rendered inoperative during the two months of what is described as the world’s most brutal
lockdown. The ‘unlockdown’ that was announced by the government on July 01, 2020, has not led to a cheerful situation with the number of Covid-19 positive cases spiking. Having crossed the 31 lakh mark with 60,975 new cases, India has come to rank a close third after Brazil and US. For bus operators and truck operators, it in no way spells good news as they grapple with lack of any relief from the government and witness little freight or people-travel demand. With no CV operator in a position to even think of purchasing a new CV, except the very big players and those who have vehicles that are absolutely
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at the end of their life, CV dealers are clearly under much distress. As CV makers make efforts to resume production (see box) and restore their supply chain, it is the CV dealers that will take more efforts to get right, it seems. This is especially proving to be a challenge for full-range CV makers. “Our operational costs, which include interest payments, staff salaries among others are turning out to be unsustainable. The 30 per cent revenue from service is just about helping to stay afloat,” said Jain. “The loss we continue to incur every passing day is spiralling such that we will have to decide if we should shut down the business very soon,” he added. Priorities Prioritising to retain their skilled manpower, dealers are finding
Tejpal Ailsinghani, Managing Director, Kamal Motors.
the going tough. Expressed A. Rajan, General Manager (Sales & Service) at Anamallais Agencies (Stadium), said that they are experiencing hardly any demand in bus and truck segments. Staring at the first half of the current fiscal as a complete washout, Rajan is not certain if the upcoming festive season will bring any cheer. The malaise he fears has run deep
and will take a long time to eradicate. Stressing on the fact that the pandemic has thrown the business of many of their customers out of gear, Rajan remarked that there is an acute cash crunch. Receiving a lot of inquiries about BSVI vehicles and if they would support higher profitability in the wake of the challenges many CV operators had come to face post the announcement of new axle norms by the government in late 2018 and the subsequent economic slowdown in 2019, CV dealers have been left high and dry. Said Bharat K. Patel, Partner, Trishul Motors (a VECV dealer), that the pandemic has drastically altered their business equation. Of the opinion that the lockdown has ended their story, Patel expressed that they are facing a terrible liquidity crunch. In fact, many dealers that CV
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(L to R) M.S. Randhawa, Managing Director, Randhawa Motors, Gurpreet Singh Randhawa, Director, Randhawa Motors and Gurjit Singh Randhawa, Director, Randhawa Motors.
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magazine spoke to, on the condition of not revealing their identity, mentioned that they have received help from no quarter. Neither from their dealer principal, not from the government, which gathers so many taxes from them under one pretext or the other. Stating that it would be almost impossible to get back on their feet in the current financial year, Patel averred that the rot has run deeper than many experts have come to gauge. Operating four service centres and two showrooms with an employee strength of 250, Patel is prioritising the retention of manpower as well. If the Supreme Court’s judgement to allow registration of BSIV vehicles sold till March 25, 2020, has helped, on the condition of anonymity, many dealers said that it is the case
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of being too late and too little relief. One dealer was specific. He expressed that they have been subject to much trouble, being stuck between their customers and the court. In case of CVs, it is a different equation, he stated. Cowls and bus chassis take time for bodies to be built. They are registered post that, he informed. Another dealer pointed at the significant slowdown at the RTO level due to less staff. Factors like these also affected our ability to clear BSIV vehicles despite entering into a sale agreement with customers, he quipped. What also affected the ability of the dealers to clear their stock of BSIV CVs was the shortage of drivers. Driver shortage and finance woes The issue of driver shortage
has also affected CV sales, mentioned a dealer. Already finding it difficult to achieve good utilisation levels, transporters have simply postponed any plan they had been working on to replace their aging vehicles with new ones, he added. Another dealer, on the condition of not revealing his identity, mentioned that they have been waiting for drivers to return. In their absence, many CVs have not been able to visit their service centre for periodic servicing, he said. Difficulty to secure finance, said yet another dealer, has been a big stumbling block in their efforts to drive their business. While many drivers have gone to their native villages, taking the vehicles along with them, dealers are getting robbed of their secured business of servicing these
cover story Declining CV sales Production facilities have resumed after unlocking announced by the government but the vehicle sales have not increased even after a month which is affecting the dealer’s business. According to Society of Indian Automobile Manufacturers (SIAM), 28939 Commercial Vehicles were produced during the first quarter of FY2020-21 recording a decline of (-)87.61 per cent as compared to the production of 2,33,563 vehicles in the first quarter of FY2019-20. Only 31,636 Commercial Vehicles (CVs) were sold In Q1 FY2020-21and witnessed down (-) 84.81 per cent as compared to the sale of 208,310 CVs in Q1 FY2019-20. According to reports by CRISIL, CV manufacturers would suffer a net loss of Rs 6,000 crore and 20 per cent decline in sales volume.
vehicles as per their schedule. The sudden move by many banks and financial institutions to not give loans on one pretext or the other has also led to a significant shrinking of CV sales, new and used, said one dealer. Many first-time businessmen or driver-turned-owners who want to venture into the transport business are not getting finance from banks, said a Hubli-based CV dealer on the condition of not revealing his name. Announced Patel, “Lot of our customers are first-timers, and the finance companies, it looks like, are not interested in giving them a loan.” “Not only is this stalling our business, it is also leading to an uncertainty of the most cruel kind,” he added. Opining that most CV dealers have gone bankrupt, an industry observer said that the liquidity crunch is so severe that he fears that a huge amount of
Sanjay Passi, Chairman & Managing Director, Pasco Group.
them would have disappeared by the end of this calendar year if something is not done to support them by their principals and the government. The observer also mentioned the possibility of big dealers acquiring the smaller, vulnerable ones. Here’s another scenario of big fish eating the small fish that is very likely to be seen, he quipped.
New wave of mergers and acquisitions The high speed journey towards bankruptcy of many CV dealers is expected to unleash a new wave of mergers and acquisitions, mentioned another industry observer. The process has already started, he added. Stating that some dealers are either shutting down or merging with larger dealerships, he informed that the need for liquidity is fierce. The worst, he remarked, is the absence of customers. Dealerships, for all the showroom experience demanded by their principals some years ago, have turned into ghost towns, he remarked. Even though the government has announced Covid relief for Micro, Small and Medium Enterprises (MSMEs), dealers do not seem to be very keen to take advantage. Despite the offer including collateralfree loans totalling Rupeesthree lakh crore, dealers seem unenthusiastic as they do not want additional liabilities, said an analyst that follows the CV industry beat. Dealers he spoke to, he informed, told him that Commercial Vehicle www.commercialvehicle.in // September 2020
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they are already reeling under a huge debt and don’t want some more of it. On the condition of anonymity, a CV dealer mentioned that the stimulus package is of no help to them. It is a good initiative, but not helpful as there seems to be a lack of understanding, he added. We are stuck at the sales end, and the stimulus package is not going to get us customers, he expressed further. With the stimulus package announced by the government looks like a set of misplaced priorities at least when it comes to address the woes of the dealers, the biggest challenge faced is to get footfalls. They are nowhere near the normal of 2019. Asked if a relief package was extended to truck and bus operators, a few dealers doubted if that would kick-start demand for new
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A. Rajan, General Manager (Sales & Service), Anamallais Agencies (Stadium).
vehicles. Such is the state of small transporters that amount to about 60 to 70 per cent of the total transporter size in India, that they would prefer to repay their debts first, mentioned a dealer at Nagpur. The road ahead Of the opinion that it would take at least one full year to
recover, a CV dealer expressed that the positive development at this moment in time is the rising involvement of major CV principals in hand holding them. Announced Raghav Sanghi of Sanghi (MTB) Trucking Pvt. Ltd., Indore, that businesses are reopening and it is a matter of time when normalcy will restore itself. Stating that there is no need for dealers to lose hope, Sanghi said, “Customers are coming and inquiring about vehicles. There is enough reason to believe that sales will soon start taking place.� This is a passing phase and will soon be over, he added. Averred Sanjay Passi of Pasco Motors that the current dull phase will soon pass. GP Randhawa of Randhawa Motors, Panvel, said that they have taken to strategic planning to get over the current phase of low to no sales.
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Stressing on the importance of strategic planning, Randhawa said, “We as well as other dealers are facing much difficulty. We are however staying positive and are confident that the current dull phase will soon pass away.” Revealing that online inquiries have risen in number, Randhawa drew attention to the change in customer psyche. Customers are finding a way to digitise themselves and use the internet to do tasks that they did not even think of doing sometime back. Both Passi and Randhawa mentioned that their principals Tata Motors and Mahindra & Mahindra have been supporting them through this challenging period. Informing that they have managed to get sales going through even though the scale is anything to talk home about, a CV dealer echoed
the sentiments of Passi and Randhawa that this dull phase will pass soon. Stating that the leadership at CV dealers across the country, irrespective of them selling trucks, buses, vans, mini-trucks or e-rickshaws, was tested for the last few months, an industry analyst mentioned that some have been highly innovative in their approach towards business. Many dealers, overcoming their competitive spirits, have taken to collaborate with other industry stakeholders to overcome the challenges. Many dealers have gone out of their way to support their clients, have helped them secure finance, and provide them service at their doorstep, he said. Expressed Randhawa, the current times will make us emerge stronger. The current times have shown us new ways to drive revenue, he added. Deriving more revenue from service than sales, Randhawa Motors has survived the severely challenging last few months to tell the tale. The rough period is not entirely behind us yet, said Randhawa, but we are hopeful of emerging stronger, he reiterated. He took much pride in relaying that when the lockdown started, they sat down and planned their way ahead.
This, he informed, helped them to sort out challenges like staff salaries among others. Supporting the staff to follow the stipulated guidelines and social distancing procedures, Randhawa Motors is confident that business will reach normal levels sooner than later. Many CV dealers are hopeful that the festival season will provide them some reason to cheer. Said Tejpal Ailsinghani, Managing Director, Kamal Motors, that he is positive of the situation improving. “We are hopeful of the situation getting better during the upcoming festive season,” he quipped. Increasing their online presence, many CV dealers across the country have taken to training their sales and service to help them get grip over the situation. Many have taken to re-orienting their staff into realising opportunities in ways that they would not have probably thought of earlier. Arranging demo vehicles at the doorstep of customers, dealers have taken to using tabs and similar such instruments in a big way. Witnessing inquiries grow in LCV, ICV and M&HCV segments, CV dealers are hoping that other segments too start showing some traction. Conversion is however proving to be a contentious issue.
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Mentioned a CV dealer from Pune that they are seeing better traction in used CVs as compared to the sale of new CVs. Daimler India Commercial Vehicles (DICV) recently announced that they are entering the used CV space to further increase their reach and help their dealers avail of additional revenue building opportunities. Rajaram Krishnamurthy, Vice President Marketing & Sales and Customer Services, DICV, expressed during the announcement that the used trucks market in India is three times that of the new trucks market. With CV majors like DICV taking to used CVs (it will soon add buses to its used business), it is not surprising that many CV dealers have found better revenue realisation opportunities in the used vehicle space by offering a one-stop shop experience. Dealers have been helping used CV buyers with refurbishment services, with documentation and with availing of finance.
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The pandemic has given a new lease of life to the used CV business, mentioned an industry observer. He stated that it also provided many CV dealers a means to stay in business. Mentioned Rajendra Kane of Trucks Trade, Navi Mumbai, that a significant shift has taken place in the used CV domain. “Used CV business has shown much growth in the last few months,� he said.
Informing that inquiries have increased, Kane averred that he is hopeful of the used CV market reaching new heights in the wake of the developments like a considerable hike in the price of BSVI CVs. Of the opinion that the total operating costs of a CV have taken a new meaning in the last few months, Kane explained that certain segments are showing signs of getting better over others.
All images are for representative purpose only.
Special Report
Stellar job by a Volvo Puller A massive 74-wheel Volvo FM 460 6x4 puller took one year to reach Kerala from Maharashtra
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ullers make special machines as extreme heavy-duty trucks. Equipped with a highly powerful engine and a robust driveline they are quite different from the tractors found on a highway. Engineered to carry massive loads, called Over Dimensional Cargo (ODC) that weighs and measures far more than a conventional cargo would,
Deven Lad pullers make awesome CVs. In India, pullers found are mostly of Volvo make. With a horsepower rating in excess of 400-500 hp, they are impressive to look at. A 6x4 Volvo FM puller belonging to Inland World Logistics recently ferried an ODC in the form of an aerospace horizontal autoclave from Nashik to the Vikram Sarabhai Space Centre (VSSC) in
Vattiyoorkavu, Kerala over a span of one year. Where a conventional truck would take no more than a week to travel the distance, which is about 1700 km, this machine, with 74 wheels and a massive 70-tonne cargo laden on it, took a good one year to complete the journey. Reaching VSSC on July 20, 2020 after travelling approximately five-kilometers
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a day, the Volvo FM 400 6x4 puller performed a stellar task, making a highlydependable machine for its fleet operator in the process. Said to be one of the 11 pullers that the company owns and operates, theVolvo FM 6x4 was chosen for the task because of its ability to ferry such an ODC reliably. Experiencing some downtime due to the Covid-19 situation, according to Shashi Sharma, General Manager, Inland World Logistics, the ODC convoy found its way to VSSC after much route planning and reconnaissance. This is typical of the movement of an ODC, informed Sharma. He explained further, “In this particular case, a survey was done before deciding to choose the road route over a sea route.” Handed the assignment to ferry
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an aerospace horizontal autoclave by a Ambarnath (Thane)-based firm, Dipesh Engineering Works, from its Nasik facility, which it had manufactured for VSSC, Inland World Logistics began its activity in June 2019. It informed Dipesh Engineering Works that the consignment ferried by ship would cost twice the amount that they would incur to transport it by road. “An agreement was reached to take the ODC by road thereafter,” said Sharma. Once it was decided to transport the massive autoclave by road, Inland World Logistics carried out an in-depth route planning exercise. It took permission from the authorities of five states. A Volvo FM 400 6x4 puller was pressed into service. Its construction and maximum torque of 2000
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Nm at 1400-1800 rpm (from a 12.8-litre six-cylinder in-line diesel engine) put it in good stead for the task. Revealed Sharma, “The terrain till the Tamil Nadu border was doable. It was the last 250 kilometres of the journey till Thiruvananthapuram that proved to be the toughest.” Glad that they completed the assignment in a year despite the Covid-19 situation, the logistics company put on the job its battery of people experienced to carry out such special assignments. A total of 32 staff members were put on the job, informed Sharma. The 70-tonne ODC measuring 7.5 m in height and 6.65 m in width necessitated an amount of activity along the route like trimming the branches of trees alongside the road, finding an alternative to bridges if they could not take
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the load, and to take the best and the most reliable route. As the puller convoy moved at a snail’s pace to cover fivekilometers per day, it blocked the entire road quite often. This was especially the case as it passed through cities, leaving no space for other vehicles to manoeuvre. With a staff of 32 people monitoring the movement of the vehicle and ODC, the convoy made a sight to behold. With traffic as well as other activities coming to a halt with the convoy in sight, the one year period for the team at Inland World logistics which executed the assignment was gruelling as well as exciting. Into the journey, and the logistics company replaced the original Volvo puller with an identical one. It was done so that the original puller could be sent for service. Travelling across five states, the convoy was given police protection. The cops provided the convoy with a pilot car so that it would make a safe journey, devoid of any mishaps and without endangering the lives of other road users and pedestrians. Much time was spent in chopping tree branches and removing electricity lines. It was found that the overhead electricity lines would come in the way
at many places. Before the convoy could move an inch, they had to be removed and refitted. Interestingly, the task of manoeuvring the behemoth was facilitated by the many axles that accounted for 32 wheels. Most of the wheels of the trailer could be steered in a certain direction and formation. Averred Sharma, “We used special ropes to carry the cargo safely. The puller did a stellar job of pulling the cargo over a diverse terrain.” He informed further that the drop deck (trailer) weighed 10-tonnes. If the nature of the ODC (weighing precisely 78 tonnes) made it unviable or costly to be transported by a ship, on the road, it posed some unique challenges as well. One of it was to ensure that at no point the cargo’s weight shifted in a manner where it would become dangerous to carry it. If the special ropes helped, the logistics company had to indulge in much prior planning post the route survey. Suffering a downtime in Andhra Pradesh for a month due to the Covid-19 situation (the lockdown that was imposed), the convoy and the team manning it had to take the necessary health precautions. The downtime due to Covid-19 situation also
altered the dynamics of the entire assignment and had a negative influence on the earning ability of the logistics company. Said Sharma,“This consignment has not turned out to be profitable for us as we had to take care of the crew and make arrangements of a warehouse to keep the autoclave and the vehicle until the permission to restart the journey was had.” “We had to ensure the safety of our staff as well as the material,” he added. Making news as the convoy made its journey through the arduous terrain in Kerala, a sense of joy overtook the team as they rolled into the VSSC premises at Vattiyoorkavu, Thiruvananthpuram. Their efforts over the last one year paid off. Work on installing the massive auto enclave is said to be in progress at VSSC. Once operational, it will add to the nation’s capabilities, mentioned a source in the known of the development on the condition of not revealing his name. He did not forget to praise the efforts of the Inland World Logistics team for the efforts they took to ferry the cargo in the Covid-19 situation and amid numerous challenges.
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Daimler India enters used CV market
Daimler India has entered into the used CV market.
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mid the ‘unlockdown’ scenario, Daimler India Commercial Vehicles (DICV) has announced its entry into the used CV market with an intention to increase its reach further. A logical move by the Daimler Group company as the sale of new CVs sputters, the attention to used CV market is expected to draw new customers as well as keep the existing ones in the same family. A new step, according to Satyakam Arya, Managing Director & CEO, Daimler
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Bhushan Mhapralkar India Commercial Vehicles, the move to participate in the used CV market through the ‘BharatBenz Exchange’ business vertical will also enable the CV maker to leveraging its growing customer base and nationwide dealer network other than supplementing its existing new vehicle sales. Offering a platform where customers can exchange their used vehicles of any brand for new or used BharatBenz vehicles, ‘BharatBenz Exchange’ is currently limited to the intermediate-, medium-
and heavy-trucks range. A programme for buses would be announced soon. Open to exchange of other brands of intermediate-, mediumand heavy-duty trucks with BharatBenz trucks of their choice, DICV’s exchange business builds on the fact that over 100,000 BharatBenz trucks and over 3000 BharatBenz buses have been sold by it in India since its entry into the Indian market in 2008. Stressing on high level of localisation (CVs made at the Oragadam plant carry
Special Report
97 per cent local content by value) from the day it started operations in India, and chose a market-specific brand ‘BharatBenz’ for the respective market. Daimler has been driving the Indian operations through not just the supply of relevant and latest technology but also through relevant investments. Announcing that it has entered into an MoU with the Tamil Nadu Government in May 2020 to invest Rs.2,277 crore to expand the Oragadam plant, which would lead to the generation of another 400 jobs approximately (the current employee count is roughly 4000), DICV, according to Arya, saw phenomenal demand emerge for its BSVI CVs as BSVI emission norms came into force since April 2020. Stating that 2020 has been a tough year, he drew attention to the efforts taken by the CV maker
tapping into the vast technology and knowledge pool of Daimler Group’s commercial vehicle operations the world over, Arya averred that the exchange programme is part of the extensive change in their business strategy, which anticipates acceleration in digital ways of working. An integral part of the company’s digital Satyakam Arya, MD & CEO, Daimler India Commercial Vehicles.
to upgrade almost each and every product it was offering to BSVI level. Informing that his company has been offering 43 BSVI models, and is ready to adapt to the new market conditions as they emerge post the national lockdown, Arya mentioned that he is confident of the exchange initiative further boosting the sale of its BSVI vehicles. Stressing on DICV’s ability to address the requirements of the Indian market by
Rajaram Krishnamurthy, Vice President Marketing & Sales and Customer Services, Daimler India Commercial Vehicles.
strategy thus, the exchange programme, according to Rajaram Krishnamurthy, Vice President Marketing & Sales, and Customer Service, DICV, banks on the used CV market being three times bigger than the new CV market. Keeping the customer at the centre, and ensuring that he gets AMC and warranty benefits, gets standardised resale value, and enables drivers to turn owners, the exchange Commercial Vehicle september 2020 // www.commercialvehicle.in
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Daimler India is confident of dealers getting an extra revenue opportunity through the used CV business.
programme builds on the other two pillars of financiers and dealers. Said to provide those looking to exchange their CVs or buy new ones (only BharatBenz trucks would be offered), the exchange programme looks at carving a place for itself in a space that is highly unorganised, locally funded, not as transparent and often lacking in sound technical or legal framework. By leveraging rising digitisation in the post Covid-19 environment, DICV, through its used CV initiative is keen to provide certified vehicles. Banking on the premise that many operators are shifting to BSVI BharatBenz CVs because of
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the superior TCO benefits they offer, Arya explained that they will offer a one-stop-shop experience by involving not just the financier but also the dealer. Apart from providing the customer a peace of mind, the initiative will lower the risk
to financier and an additional revenue earning potential to the dealer, he added. As part of the exchange programme, DICV is clearly looking at higher sales of spares and service offerings. Having exported no less than
Special Report 30,000 CVs to 50 markets worldwide and far more spares to the Daimler Group’s manufacturing locations the world over, DICV, to drive its used vehicle programme, is not just banking on its ability to provide superior technology, but also the ability to provide warranty of up to eight years. “We were the first CV maker in India to provide an eight-year warranty on our vehicles,” quipped Arya. Including refurbishment of vehicles and documentation as part of the one-stopshop strategy, DICV, with the exchange scheme, is looking forward to the announcement of the vehicle scrappage policy. This, it is of the opinion, will boost its efforts. Open to tieup with other companies if it would help to scale-up, the CV maker is expecting mediumduty vehicles to amount to the largest chunk of the transaction. Redrawing all its strategies by going back to the drawing board, DICV, according to Krishnamurthy, is taking into account the changing market dynamics due to factors like the steep escalation in fuel prices. Confident that the used CV market will will explode once the scrappage policy is announced, he averred that transporters are shifting to BharatBenz trucks after understanding the benefits they offer in view of the fluid business environment. Expecting a drop of 50 to 60 per cent, DICV, according to Arya, is contrary to the perception, working towards hiking production at Oragadam. “We are adding second shift to our operations,” he remarked. Witnessing a lot of
contradictions in the Indian market, the CV maker, said Arya, is emphasising on safety and comfort. Finding it tough to come to terms with the fact that the Indian market is catching with the most advance markets in the area of vehicular emission technologies and lacking in safety technologies with the
sale of BSVI compliant cowlchassis, he opined that his company would continue to value human life. Pointing at a 74 per cent drop in CV sales in March 2020, Arya mentioned that the supply chain and dealer network will have to be regigged. “It will take months to stabilise,” he concluded.
Daimler India Commercial Vehicles is adding second shift to the operations.
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Industry talk
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Defining transport MSMEs
Transporters have been demanding the status of MSMEs with the hope that it would benefit them. Deepti Thore
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he road freight (transport) fraternity has been demanding the status of MSMEs for a long time. It is doing so with the hope that is would benefit them. However, the proposition does not look as simple as it made out to be. In a recent interaction with AITWA members, Vijay Kumar, Director, MSME Development Institute, MSME-New Delhi,
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Mahendra Arya, President, AITWA.
Vijay Kumar, Director, MSME Development Institute, MSME-New Delhi.
Industry talk expressed that the change in the definitation of MSME means that a transport business investing around Rupees-one crore and having a turnover of around Rupeesfive crore will be called a micro-unit. A (transport) industry with an investment of Rs.10 crore and a turnover of Rs.50 crore will be called as a small scale industry, he mentioned. The one with an investment of Rs.50 crore and a turnover of up to Rs.250 crore will be called as a medium-scale enterprise, he added. Informing that the changes regarding MSMEs are part of the Rs.20 trillion financial package announced by the Government against the background of the pandemic, Kumar averred that the same will indirectly benefit the growth of industrial economy of India. Drawing attention to the Udyog Aadhaar website (https://www. msmeregistration.org/), Kumar explained that transport businesses falling under the MSME segment should register as this would enable them to avail the advantages provided by the Government through ‘Udyog Aadhaar’ platform in a matter of few minutes. For registration, he informed, a valid ‘Aadhar’ identification and bank account number is required. Based on three categories A, B and C for manufacturing, and D, E, F for service segment, ‘Udyog Aadhaar’ said Kumar will enable many transport businesses to find ways to address their pain points. With the ‘D’ category defining the micro, ‘E’ category defining
small and ‘F’ category defining medium, the ‘Udhyog Aadhaar’ initiative has been in force from July 01, 2020. It is in force as part of the new MSME definition announced by the Government. New Definitions If a transport business would need to re-register itself as per the new set of definitions if it is holding a registration as per the old format, the benefit of doing so would qualify them to avail benefits akin to MSMEs in other fields with a similar turnover and investment. An interesting part of the change would be that a transport business with an investment of Rupees-six to Rupees-seven crore will now come under the smallscale and not under the
medium-scale. This, in-turn, should empower it to avail of the benefits meant for small-scale enterprises. A big change is the positioning of the manufacturing and service sectors under the same category. The road freight (transport) segment coming under service sector. Stressing on the need to build facility centres for training the drivers and spotters, Kumar called for the need to refine the business model such that it is agile and robust. The new definitation of MSME necessitating transport businesses under the micro and small industry-scale, a need is also emerging for the road freight (transport) fraternity to calculate the emerging challenges in terms of other mediums of
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Industry talk transport and an effort by the Government to bring down the freight rates. The need to refine the business model emerging as a key factor, especially in the wake of being internationally competitive, the micro and small-scale businesses could collectively invest in their own facility centres apart from those that impart training to drivers and helpers. The need for an all-round upgradation in efficiency being seen as the need of the hour to sustain and grow, the road freight (transport) fraternity could do with much work on the fleet side as well. They could not only get the drivers to drive more efficiently, they could also utilise the centres to impart service training for spare parts maintenance, for jigs and fixtures, etc. Facility centres Emphasising on building such centres even in areas that may not have transport services, Kumar averred that companies (10 to 15 of them) willing to do so would, under section 8, be provided with 80 per cent investment support with a upper limit of Rs.20 crore (by the Government on a no profit no loss basis). Built on a piece of land owned collectively by the companies, such centres could use the one time grant provided by the government to buy machines or equipment and hire employees, informed Kumar. Stating an example where the Government will provide a one time grant of Rs.18 crore if a group of transporters or their association was to come forward and build a facility centre for an investment of
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Rs.20 crore, Kumar explained that such a centre would help address issues like driver shortage as well. He urged AITWA to start two or three such centres across the country on a pilot basis. Floating an idea where the centre could service trucks as well, Kumar mentioned that hard-to-get spare parts could be made, saving time and resources. Stating that a facility centre could provide a means of skill development as well as provide employment to skilled people, Kumar remarked, “Such an initiative will definitely benefit the transport sector.” “It will also help the sector to grow,” he added. Of the opinion that such a centre would receive approved DPR from the MSME institute, Kumar expressed that the road freight (transport) fraternity should pay more attention to reduce wastage. “Reducing wastage would enable better profit margins,” he said. Highlighting manpower, time, fuel and machinery as the prime areas to reduce wastage, Kumar explained that at least 10 to 15 per cent waste could be easily reduced. He suggested that consultants be hired. Those that understand the ways of working of the road freight (transport) fraternity, he added.
Credit guarantee scheme Suggesting AITWA to pickup four to five transport businesses in the Delhi region for a pilot project, Kumar expressed that the learning from this project could be applied on a district, state and national level. Of the opinion that the Government will gain in terms of taxes if a transport business is profitable, Kumar averred that transporters could look at availing the benefit of the credit guarantee scheme under the MSME initiative. The scheme, he informed, provides loan of up to Rupees-two crore with credit guarantee. It is only applicable to those who have not applied for any loan previously or have not defaulted. Applicable for both the sectors -- manufacturing and service, the credit guarantee scheme is part of the Rupee-three lakh crore package announced by the finance ministry for the MSME sector. On the refusal of the bank to provide a loan, transporters could report to the MSME institutes in their locality. Stating that the highlight of the scheme, apart from a collateral free loan, is the support of the government, Kumar mentioned that a website has been launched
Industry talk by the government (https:// www.dcmsme.gov.in/) to create awareness. Suggesting transporters to visit this website once or twice a week to understand the manufacturing and service industry-related schemes, Kumar averred, “Transporters should also visit the ‘Samadhan’ website started by the government for MSMEs for payment recovery.” The website, he informed, has been designed and developed to help MSMEs recover money after lodging complaints in a time span of 45 days. Responding to Kumar’s suggestion, Mahendra Arya, President, AITWA, said that the transport sector is often not considered as eligible by most big complaints. “Whenever a transport company is ready to work with any big company, the one question that is asked is whether it is MSME registered,” he added. MSME benefits Stating that no company can deny participation in a tender process if a transport business is registered as a MSME, Kumar explained that micro and small transport companies will specifically benefit as they do not have to pay fees or any earnest amount. Informing that the tender form is free, Kumar averred, “If it qualifies as L1, an order is placed.” Expressing that large industries are depending on smaller industries, he remarked that if the MSME registered smaller company’s price is higher (than a bigger company achieving L1 level), the company placing the order will call the smaller company and give it 15 per
cent of the total tender outlay. Drawing attention to the issue of payment faced by smaller transport businesses, Arya mentioned that a transporter has to give 90 per cent of the amount after he or she hires a vehicle. The remaining 10 per cent is given after delivering the goods, he added. Informing that the transporter’s job is technically over after the delivery is done, Mahendra Arya highlighted that the same is however not true. The transporter bill is entertained only after the hardcopy is attached to the bill with the stamp and signatures of the receiving company, he added. Explaining that bill submission is considered from the day it has been accepted and this process takes about 20 to 25 days, causing payment delays, Arya pointed out that the transport of goods is done under Section 10 or Section 11 of the new Carriage Act. He quipped that under section 10, the goods owner (consigner or consignee) provides the insurance and not the transporter. Under section 11, Arya stated, the transporter takes the entire responsibility
and pays the charges. Ironically, despite an understanding towards Section 11, many consignors (consignee) do not pay for the insurance, resulting in driver safety risks, Arya revealed. Sending a subrogation letter to the insurance company and asking them to take legal action against the transport company, many goods owners simply refuse to pay. Insurance companies often bargain and perform out of court settlements with the transport companies, as a result, said Arya. Informing that transport companies are compelled to pay all penalties despite not being responsible for the act, Arya remarked, “A solution is needed to address this pain point.” Kumar suggested that this issue should be raised by the transport companies at the government level. Emphasising on zero wastage once again, he spoke about the need to achieve high vehicle utilisation levels. Of the opinion that drivers should not have to be idle or practice dangerous procedures to save fuel, Kumar reiterated the need to establish facility centres. Commercial Vehicle September 2020 // www.commercialvehicle.in
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Digitising public transport
Digitising public transport has become of paramount importance amid the Covid-19 environment. Deven Lad
T
he speed of digitisation of public transport is made even more important by Covid-19. It is undoubtedly driven by the need to protect people involved in running the public transport as well as the people using it for travel against the virus. Highlighting this very issue, M Ramachandran, Former Secretary, Ministry of Urban Development, Government of India, stressed on the opportunity to increase efficiency and lower the cost of operations. Stating that there was a need to provide passengers with a new experience, he mentioned that digitisation of public transport has been boosted by the introduction of FASTag.
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“Nearly 450 toll plaza have dedicated FASTag lanes, and over 17 million prospects have been issued last month,” he added. Drawing attention to the 17 million prospects having carried out four billion transactions amounting to Rs.65 crores per day, bringing the logistics cost down in the process, Ramachandran expressed that 22 per cent of the national highways with a length of over 150,000 kilometres carry roughly 40 per cent of the traffic, making them a primary mode of transportation in India. Speaking at a webinar organised by the Busworld Academy in partnership with UNCRD Japan and UN-Habitat on digitisation of public transport, he averred that the
National Highways Authority of India(NHAI) should leverage digitisation to increase the pace of its projects and to better monitor them by using IoT. He stated that the NHAI should use monitoring devices like drones, radar, vehicle network surveillance, GPS devices among others while highlighting the organisation’s feat to be the first fully digital transactions agency. Drawing attention to how digitisation of public transport would support the sustainable development of society, Ramachandran explained that Intelligent Transport Systems (ITS) are capable of playing a key role in digitisation of urban mobility public transport mediums. He drew attention
All images are for representative purpose only.
smart transport
to location information and communication technologies that could make travelling safe, energy-efficient, seamless and comfortable. Highlighting the need to offer passengers with an Estimated Time of Arrival (EST) to attract more passengers and increase the overall efficiency of the operation, Ramachandran said that ITS, which led to the provision of 18000 modern buses in 170 cities in India, could be utilised for the same. Enhancing public transport standards Stressing on tracking surveillance, intelligent information system, global positioning system (GPS), synchronisation and an internet ticketing system, Ramachandran stated that an effective and sustainable transport system was the need of the hour. “Each project proposal or transport system should be linked to the measurable improvement in the service level benchmark,� he added. Of the firm opinion that digitisation will bring opportunities for the public Commercial Vehicle September 2020 // www.commercialvehicle.in
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transport sector in the form of quality, efficiency and lower operational costs, Ramachandran averred that it will also open up new revenue streams and ensure a superior experience to the customers. Citing the need to employ new mobility concepts and technologies like driverless vehicles, he said that a lot more is needed to be done by the country’s state transport undertakings, by private bus operators and city administrations. Sharing information about his company’s work on four fronts, Connectivity, Autonomous, Shared Services and Electric (CASE), KarlAlexander Seidel, CEO and Head of Daimler Buses India, mentioned that they are offering Busconnect system as standard on their BSVI buses. Highlighting the benefits of the Busconnect system like fleet management, passenger management, reports, fleet tracking alerts and the ability for passengers to select the route they want to travel, Seidel informed that they are working on bringing the best and the latest technology and
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practices to India that they have developed in Germany. Pointing at other Busconnect functions like geofencing and entertainment, and how it could enhance customer experience for bus operators, he informed that various angles to aid further mobility development in the public transport space in India were being looked at. Pointing at electric vehicles, Seidel said that his company was closely following the developments in the area of charging infrastructure, development costs and components localisation. “We are looking at everything as a general project management practice when it comes to public transport in cities and how to enable cities to build a robust
infrastructure,” he added. Making public transport attractive through digitisation Hinting at Daimler’s ability to enter the electric public transport space as soon as it identifies an opportunity and feels that the market is on the verge of exploding, Seidel expressed the need to integrate ITS systems seamlessly to ensure better efficiency and enhance passenger safety and convenience. “ITS systems currently exist as standalone systems,” he said. Highlighting the need to have technologies that ensure seamless integration such that the passengers benefit, the operators benefit,
smart transport
and the stakeholders also benefit, Seidel explained that it was also necessary to look at environment protection and energy conservation. “Connectivity and automation in the case of public transport and involving buses should also lead to a sustainable environment,” he quipped. Stressing on ‘Avoid-ShiftImprove’ framework, Stefanie Holzwarth, Urban Mobility, Urban Basic Services Section, Urban Practices Branch, UN-Habitat, averred that digitalisation of public transport should be achieved such that it elevates convenience and safety. Of the opinion that the digitisation exercise should make public transport more attractive to passengers, Holzwarth stated that the UN-Habitat is focusing on reducing the need for motorised travel through transport demand management and
by promoting urban public transport in its most efficient form possible. Drawing attention to electric mobility, she added, “Digitisation can have a revolutionary impact on public transport.” Giving the example of Dar es Salaam, Tanzania, where the public transport was transformed into a modern and successful Bus Rapid Transit (BRT) systems, Holzwarth stated that UN-Habitat has been identifying high demand commuter mass transit routes and corridors and finding ways to up their efficiency and sustainably with the commuter at the core. She also pointed at the centred public transport planning authority of Nairobi in terms of para-transit mapping and a BRT plan (Matatu routes). Digitisation for safe and convenient public transport Informing about UNHabitat’s work in the area of understanding as well as
helping transform public transport systems, Holzwarth drew attention to how smart bicycles in Hyderabad were offering first and lastmile connectivity to metro commuters. Highlighting its digital nature, she said that the main objective of digitisation should be to achieve a safe and convenient public transport that encourages private vehicle users to leave their vehicle behind. Stressing on apps. as facilitators of digitisation of public transport, Holzwarth mentioned that efforts should be made to leverage emerging technologies and gadgets like smart watches, smart glasses, etc., to make public transport and activities related to its use not only convenient but attractive to commuters. Hinting at a need for public transport bodies to partner with their passengers through digital tech platforms to enable a
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Smart transport personalised experience with the means of need-based navigation (customer-oriented services), just in time services, etc., Holzwarth highlighted the drastic change in the Covid-19 environment where physical tickets are becoming redundant. Emphasising on developments such as contactless services and electronic ticketing, she remarked that integrated public services and integrated ticketing will no longer be an option. Of the opinion that this would reduce travel time, boarding and unboarding time, enhance reliability, and encourage private vehicle owners to take to public transport, Holzwarth said, “Digitisation efforts do not leave out particular society groups such as the elderly and poor.” Pointing at changing governance, costs, and new staff profiles, could pose a threat to traditional operators, she advocated the avoidance of stand-alone sectoral solutions. Of the opinion that different digital modes should be promoted -- like ‘onestop-shop’ platform or MaaS, Holzwarth said support should be given to homegrown local solutions and local startups. “Emphasis should be on facilitating multi-stakeholder partnerships where the government can encourage open access to data collected by companies and public entities,” she added. In favour of promoting interoperability through the development of technical standards for communication and devices, through the development of municipal capacities in view of
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collecting, maintaining and analysing data as well as managing integrated transport systems and infrastructure, Holzworth stressed on the need to protect the environment. Alok Sethi, General Manager, Transportation Technology Solution (DIMTS), expressed that the implementation of ITS in Delhi’s public bus transport system has changed the face of it. He informed that his company conceptualised the scheme by including private stage carriage buses as well. “Under this scheme, 657 bus routes of Delhi were grouped into 17 clusters. Each cluster serviced by both, Delhi Transport Corporation and a private operator,” he added. Providing an overview of the current situation in Delhi where the ITS-backed public transport service comprising buses is referred to as a cluster bus or orange bus service, Sethi, explained that there is an incentive based scheme attached. It measures against performance benchmarks, he revealed. Highlighting how ITS has helped Mysore’s public transport to increase ridership by 15 per cent, Sethi stated that GPS based automatic vehicle location system has
been deployed. “The system monitors the entire fleet,” he added. Stressing on leveraging ITS in public transport such that it acts as a guiding arm, Sethi said that there is a need to train personnels like managers, drivers, conductors, schedulers, route designers, etc. to understand how it worked and how they could leverage it to their advantage. Urging public transport personnels to divide the use of ITS into sections such as planning, design, implementation and evaluation, Sethi revealed that they would soon release a manual. The manual would help public transport organisations to ramp up as well as increase their efficiency Drawing attention to how innovative use of ITS can help digitise, implement new systems such as electronic ticketing and contactless travel, Dr. Kulwant Sigh, Advisor, Busworld Academy, expressed that real-time tracking of bus, of passenger occupancy information, of EST are some of the features that will define the public transport of the future. A future that would not be devoid of unprecedented challenges, he concluded.
Industry Talk
Delhivery acquires Volvo trucks Delhivery has acquired Volvo FM 4x2 tractor-trailer combination for its long haul requirements. Deven Lad
W
hen Volvo Trucks first entered India, its prime focus was on the long-haul truck segment, albeit at the top end of it. With its FH, FM and even a few examples of FL tractor-trailer units, the company managed to secure a footing. Setting the wheels of transformation in progress in the Indian trucking industry in the process, Volvo found takers among a few big fleets and Government PSUs -- oil
marketing companies especially. Mustering the confidence to set up a local assembly operation at Bangalore, the Swedish truck maker found a bigger calling in the mining sector. Coming to hold a market share of almost 90 per cent in the heavy-duty mining trucks segment that are used to carry especially overburden, the company has found itself in the highway long-haul segment once again. It’s almost 20 years later and with a huge change in infrastructure when compared
to 1996. Delhivery, a leading e-commerce and B2B logistics player in India has found use for the FM 4x2 tractor-trailer combination in its fleet. Established in 2011, Delhivery is claimed to have a fleet size of over 15000 vehicles. As one of the leading e-commerce and B2B logistics players, its fleet is known to clock the highest mileage in the country with 24 automated sorting centres, over 85 fulfilment centres, 70 hubs, over 3000 direct delivery centres,
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Industry Talk
over 5000 partner centres and a staff of over 40000 people. With a modern infrastructure, engineering and technology capabilities to boast of, the company has taken to some 11 Volvo FM 4x2 tractor-trailer combinations in its growing fleet. The arrangement between it and Volvo Trucks is said to be such that a total of 25 Volvo FM 4x2 tractor-trailers combinations will eventually make it to the Delhivery fleet. Operating on two routes at present -- between
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Delhi NCR and Bangalore, and between Dehi NCR and Gauhati, the Volvo FM 4x2 tractor-trailers are made up of 43 feet closedbody trailers. Lower TCO and faster turnaround Running e-commerce and B2B long-hauls for Delhivery, the Volvo FM trucks are expected to deliver on lower TCO (inturn higher productivity) and faster turnaround. Known for their technology, reliability and
efficiency, the Volvo trucks are also expected to deliver the kind of efficiency and unleash the kind of revenue earning potential that is found in Europe. Utilising trailers that offer higher capacity of roughly 93 cu. m., the entire equation is claimed to be based on the ability of the vehicles to run 20 hours a day and 300,0000 kms in a year. With many trucks from Delhivery known to do about 20,000 kms in a month, this target does not seem quite out of place
Industry Talk
MoRTH GSR No. 414 (E) of June 26, 2020 The MoRTH GSR No.414 (E) of June 26, 2020, pertains to Roadtrains and the amendment of Rule 93 relating to the dimensions of motor vehicles under CMVR 1989. As per the GSR, the Rule 93 amendment would provide for standardisation of dimensions of motor vehicles in-line with the international standards with the aim to improve logistical efficiency. It would also enable the carriage of extra passengers or extra cargo due to enhanced dimensions without exceeding the prescribed weight. As per the GSR, in case of truck-trailers (tractor-trailers) engaged by auto manufacturers to carry motor vehicles, construction equipment, etc., and by others to carry livestock, white goods, etc., with a closed body, the overall height should not exceed 4.75 m. Roadtrains with length on
for the Volvo trucks to achieve. The only variable in this is the infrastructure, disruptions and unprecedented developments. To support Delhivery’s efforts to build a vital link in a global
par with the European ones that measure 25 m each as two units bound together, are proposed for running on select routes in the GSR. In the GSR, the length of the trailers (in the ‘T’ category) has been amended from 18 m to 18.75 m to accommodate ISO standards containers of 45 ft. The height of the trailer has been amended from 3.8 m to four-metre except in certain cases as exceptions. In the GSR, semi-trailers carrying ISO series (freight containers), fabricated (refrigerated containers) or having a containerized body will not exceed 4.52 m in the overall height. In the case of mechanical trailers carrying goods of exceptional length (windmill blades, etc.,), the GSR has proposed trailers with extendable length.
supply chain, according to Sahil Barua, the company’s chief executive office and co-founder, the Volvo trucks in the Delhivery fleet are expected to help achieve greater efficiency levels.
Confident of the interchangeable containers helping it to become the next link in a global supply chain, Delhivery, said Barua, is hopeful of the tractor-trailer revolutionising the logistic
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Industry Talk industry. Hoping that the Volvo FM 4x2 tractor-trailer combinations will outpace the current range of tractor-trailer combinations available in the country, Delhivery is counting on a significant change in its logistics capabilities by adopting powerful, technologically superior and costlier trucks. “By delivering efficiency and productivity which is more than double compared to the current range of tractors in India, we are looking at a significant progress,” averred Barua. Reliability, comfort and trailer interchange Of the opinion that the Volvo tractor-trailer combination will enable Delhivery to forward its business ambitions of reducing the delivery times for its customers, Vinod Aggarwal,
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Managing Director & CEO, VE Commercial Vehicles Ltd., which distributes and services Volvo Trucks in India, averred that the Volvo trucks are reliable, driverfriendly and capable of leading to a superior man-machine performance. Drawing attention to the Ministry of Road Transport and Highways (MORTH) change of regulation allowing trailer interchangeability, Aggarwal expressed that he is banking on a significant jump in productivity with the use of Volvo trucks. “At least that of 20 per cent,” he added. Per-Erik Lindstrom, Senior Vice President - Volvo Trucks International, said that countries like China changed from rigid trucks to high performance and higher capacity tractortrailer concepts in-line with infrastructure development, and India is on the same path.
Hoping for more Operating in over 2300 cities and across over 17,500 pin codes, Delhivery, with its fleet covering a distance of over 500,000 kms every day, is looking at the Volvo tractor-trailer combination. It is looking at significant cost savings over the last nine months by inducting the 11 FM 4x2 vehicles in its fleet. Currently doing 20,000 kms a month on an average, Delhivery is looking at clocking more distance with the improvement in infrastructure and the economic environment post the Covid-19 pandemic. Seeking advantage of changes like the ETC lanes at toll, which cut down-time wastage at thousands of toll booths along Indian highways and other roads, Delhivery is betting high on the Volvo trailer combination. To deploy a total of 26 Volvo
Industry Talk
trucks, and in connection with the winds of change blowing in the e-commerce space in India, Delhivery is looking at each Volvo truck being driven for no less than 20 hours a day with a set of drivers onboard. Powered by 380 hp, 12.8 litres in-line six-cylinder Volvo D13A380 diesel engine and an ‘I-Shift’ AMT transmission, for Volvo trucks this should be no tough feat though much would depend on the infrastructure, driver training and motivation, and an ability to such trucks with service costs expected to be higher than the other tractortrailers out there. The big highlight of the Volvo trucks is their ability to let the driver concentrate on what he should be concentrating on in the first place. Thus offering
him with a comfortable, spacious, ergonomically well-sorted workplace, the Volvo FM trucks are expected to drive a considerable transformation at Delhivery as far as its fleet is concerned. Not that it is not modern, but the inclusion of these Volvo trucks is going to change it forever. Laced with telematics, the BSVI Volvo trucks are expected to let Delhivery chart strong growth amid a shifting market environment in India with the presence of Covid-19 virus. Drawing attention towards the recent GSR No. 414 (E) of MoRTH on roadtrains and an amendment of Rule 93 with regard to the standardisation of motor vehicle dimensions in-line with the international standards,
Aggarwal mentioned that Volvo trucks will support Delhivery in their goal, setting in the process a fine example of safety, comfort and higher productivity. Expecting a significant shift to larger tractor-trailers in the express trucking space in India, Barua mentioned that fewer vehicles will move more cargo, saving in the process fuel consumption, occupy less road space and emit less. Stating that his company is driving a big change in the country’s logistics space by investing in modern infrastructure (it is building India’s largest trucking terminals at key locations in Delhi, Mumbai and Bangalore), Barua mentioned that it is bringing in more partner fleets.
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Smart transport
All images are for representative purpose only.
The electric bus outlook has changed
The Covid-19 situation has changed the electric bus outlook. Deepti Thore
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s the principal mode of commuting the world over, buses have proven their utility value despite the advent of newer, seemingly better and more efficient travel mediums like metro and monorail. As part of its evolution cycle, buses have been incorporating new technologies to make them efficient and in-tune with the requirements of the travellers.
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The Covid-19 situation has however triggered a set of changes that could influence the evolution of buses such that the process of electrification would either accelerate or decelerate. In India, the rules of the game are set to change as more and more bus operators come under stress and struggle to stay afloat. Catering to almost 90 per cent of the public transport
requirement in the country as a cheaper and convenient medium, buses are set to undergo a big change. They are set to undergo a big change that would affect its short, medium and long term prospects. With global bus majors like Volvo Bus Corporation deciding to merge its successful bus business with its JV partner, Volvo Eicher Commercial Vehicles, the bus scene in
smart transport India is set for a drastic change. A change that would perhaps have the biggest effect on electrification. With the transition of aging diesel fleets to electric ones with encouragement from the government through schemes like FAME II, the scenario post Covid-19 is looking to be quite different. Though stress would continue to be on a move to sustainable transportation, the electric buses offer one of the most compelling solutions which is expected to be scrutinised more thoroughly. At a recent webinar organised by the Busworld Academy, Amitabh Kant, I.A.S. CEO, NITI Aayog, Government of India, drew attention to the 18 per cent decline in auto sales even before the Covid-19 situation arrived, from Rs.2.6 crore in FY2018-19 to Rs.2.1 crore in FY2019-20. Twowheeler sales declined by
20 per cent resulting in sales reduction of 40 lakh units, he expressed. Highlighting the drop of 30 per cent in CVs, and terming the same as the the highest, Kant averred that auto sales over the last 12 months have been recovering. They started showing signs of recovery from April 2020, he informed. Of the opinion that there is a huge opportunity for electric buses and two-wheelers in India, Kant explained that the 2011 Census captured a travel trend of people from
the non-agricultural sector in the country. He added that the trend also highlighted that nearly 50 per cent of Indians use Non-Motorised Transport (NMT) modes, which include walking or cycling. Stating that 11 per cent Indians use buses whereas autos and taxis are used by a mere three per cent, Kant said that buses were poised to serve as the best mode of transport of the future. Informing that four-wheelers are used by only three per cent and two-wheelers by 13 per cent people, he averred that the need is for a robust and efficient community transportation. “It works out cheaper and is environment friendly as well as sustainable,� he remarked. Bus electrification Pointing at India’s status as the second biggest market
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Smart transport
of buses in the world by volumes at one lakh per year after China, Dr. Kulwant Singh, Advisor, Busworld Academy, expressed that a need to analyse the current situation from the point of view of electric buses is necessary. Especially when India ranks second biggest bus market in the world in terms of volumes. “Close to one lakh buses are sold in India every year,” he quipped. Touching on electric bus scenario in India in terms of manufacture, standardisation, development of charging infrastructure, and promotion and financing of electric buses in India, Dr. A K Jindal, Advisor e-Mobility, New products and Technology, TATA Autocomp Systems Limited, mentioned that the demand for buses on the basis
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Dr. Kulwant Singh,Advisor, Busworld Academy.
of total requirement is quite high. “There is huge potential in terms of numbers if all the public transport is to be electrified by 2030,” he added. Of the opinion that the city bus industry in India continues to be fragmented even though there are not many private companies participating, Dr. Kulwant Singh mentioned that the acceptance of e-buses in India has been slow. The biggest
hurdle is their cost, he added. Drawing attention to the rising instances of outsourcing city bus operations, Singh averred that most companies in India operate only a small number of buses. The outsourcing business model, he said, is either on gross or net cost basis. Calling for the need to offer a higher incentive for e-bus operation, Singh explained that cities like Delhi and Mumbai have taken to CNG buses. Advantage e-bus Stating that a lot of saving could be realised if the entire public transport network in the city shifts to e-buses, Dr. Jindal informed that the realtime need is to deploy 12000 to 15000 e-buses for city operation every year till 2030.
smart transport
Dr. A K Jindal, Advisor e-Mobility, New products and Technology, TATA Autocomp Systems Limited.
Stating that the deployment of e-buses for city operations would lead to net foreign exchange outflow savings of five billion dollars roughly by lowering the import of crude oil and reducing diesel consumption, he said that the total requirement of around 1,60,000 city buses is there in India if one were to look at the Indian transport policy, which mentions the need for 50 buses per one lakh population. As of now, there are 40,000 city buses, he added. Touching on the menace of air pollution in Indian cities, Jindal expressed that the need for cleaner transport mediums will rise further. Sharing his experience on EV development, Jindal opined that postCovid parameters like rapid urbanisation, traffic congestion, air pollution as well as design and mobility challenges will make them more relevant. He informed that India is poised to experience unprecedented rise in urbanisation with 68 more cities rising with a population of over a million people by 2030. Developments like these call for a faster migration to EVs. Pointing at India as the
third largest oil consumer (consuming four million bpd), Dr. Jindal said that one-third of crude imports are used for transportation. Of these, about 80 per cent are used for road transportation, he added. Drawing attention to the National Electric Mobility Mission, which has been designed and engineered to drive 100 per cent transition to e-mobility by 2030, and of which the FAME II scheme is a part, Dr. Jindal averred that technology development, demand creation, pilot projects and charging infrastructure are the key attributes of it. Of the opinion that
new technology should envisage sustainability, protection of environment and deep social change, Dr. A K Jindal explained that significant GHG emission reductions will be achieved by transport electrification and decarbonisation of power generation. Terming buses as one of the key drivers for e-mobility, he said that the allocation of Rs.3500 crore for 7000 e-buses in the country is good. Drawing attention towards the sanction of 5595 e-buses by various STUs, Dr. Jindal informed that the cap on incentives for buses amounts to 40 per cent of the cost of vehicle.
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flashback
Bus to A bright future
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new-age romantic-drama, the 2013 Hindi movie, ‘Yeh Jawaani Hai Deewani’, features a Tata LPO 1613 bus of the Himachal Road Transport Corporation (HRTC). With the plot evolving around Naina Talwar (played by Deepika Padukone) and her extrovert school mate Aditi Mehra (played by Kalki Koechlin), the movie, directed by Ayan Mukerji, reflects the developments involving four friends who catch up on a hiking trip to the Himalayas along with a group of other youngsters. The shy medical student that Naina is, she is swayed by the old memories shared by Mehra and her plan to go on a vacation with her other friends to Manali. On an impulse, Naina, feeling burdened by her tough syllabus, decides to accompany her friend at the very last moment without informing her overbearing parents. On the trip, she meets her other school mates Kabir Thapar aka Bunny (played by Ranbir Kapoor) and Avinash Arora aka Avi (played by Aditya Roy Kapoor). Over time, Naina develops feeling for Kabir whom she finds to be charming, cool and ambitious. She is impressed by his plan to travel the world before he thinks of settling down. Though good friends, Naina
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fails to express her feelings for him. The two part ways after the trip. After eight years, Naina and Kabir meet each other at the marriage ceremony of Mehra. The two again come closer. Kabir falls in love with Naina, but is confused between choosing a career he has come to love and settling down with Naina. Many twists and turns later the two find a way to meet each other. As is often the case with romantic movies, fate takes over. Making a cameo appearance in the movie’s hit song, ‘Balam Pichkari’, the (HRTC) Tata LPO 1613 bus is sold as a fully-built bus and as a running chassis. It is powered by a 129 hp, 5.7-litre CNG engine and has a GVW of 16,200 kg. Equipped with a five-speed GBS 40 DD manual transmission, the bus is fitted with dual circuit full air S-cam brakes. Capable of seating up to 53 people depending on the application and the seating layout, the bus rides on 22.5-inch dia. wheels and 295/80R22.5 16 PR tyres. With a wheelbase of 5845 mm, the fuel tank capacity of the bus is 801-litres. It measures 11.5 m in length and could be had with a pneumatic or a weveller suspension.
RNI No. MAHENG/2006/20842 Postal Reg no. MCW/215/2018-2020 Post at Mumbai Patrika Channel Sorting Office G.P.O. Mumbai 400 001 Published on 9th of every month and posted on 9/10 of every month.
Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India
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