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Transporters face fuel price hikes
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A year like no other n Driver shortage Optimistic Indian tyre makers n Ultra-low emission two-stroke is the future. /commercialvehicle
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CV_ JUNE 2021
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STRAIGHT DRIVE
P “A tough short- to mediumterm journey looks to be in store for transporters and CV makers alike”.
utting CV drivers and crew at risk, the second wave of Covid-19 has been particularly painful. It is driving demand for loan moratorium and stimulus once again. Witnessing a significant fall in ultilsation levels, challenges are mounting for the CV industry as a whole. They are adding to challenges like the dull economic environment, high fuel and food prices, and fast rising consumable prices and taxes among others. Like the ambitious central vista project, whose work hasn’t stopped even during the debilitating second wave of pandemic, regulations don’t seem relent too. A new regulation pertaining to the linking of e-way bill with Fastag/RFID has been announced. Issues concerning the use of Fastag are yet to be resolved. A tough short- to medium-term journey looks to be in store for transporters and CV makers alike. For CV makers in particular, disruptions like plant closures and loss of skilled men and women to the pandemic have been debilitating. Bhushan Mhapralkar b.mhapralkar@nextgenpublishing.net
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CV trends CV trends indicate a rising use of big data to shape up products and strategies.
Transporters face fuel price hikes The series of fuel price hikes have added to transporter challenges.
05 Straight Drive Bhushan Mhapralkar
n
Financial help for oxygen tanker drivers? DICV vaccination centre; virtual reality centre n E-way bill integrated with Fastag n Padmini VNA partners Saietta Group n Virtual ACMA Automechanika New Delhi n Blue Dart Med-Express Consortium n Ashok Leyland 24x7 support n Advanced traffic management n Volvo-BBMP Covid Care centre n Etrio dealer network n B L Passi no more n Olectra Greentech and Evey Trans bag STC tender n Truck operators demand waiver? n CNH Industrial (India) Covid pro-active measures n
08 Letters 10 CV News TVS supports Covid-19 fight n Henkel sees growth n Martin Uhlarik new Tata design head n DICV school of quality n Tata Motors extends CV warranties; on CCI radar? n Pratap Bose moves to Mahindra? n New QC solution from Jidoka n Switch Mobility appoints Sarwant Singh? n Amara Raja restarts operations n
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 June 2021 // www.commercialvehicle.in
R YOUICE VO
June 2021 48 Dongfeng KX The Donfeng KX is engineered to address the growing requirement for uptime, and fast and reliable just-in-time operations. DITA's the name
A year like no other
25
The year 2020 was an extraordinary year for the CV industry.
Driver shortage
50 MAN Steyr With majority of MAN employees at Steyr, Austria, voting against the plant takeover by WSA, the risk of closure and with it the loss of thousands of jobs has got bigger. 54 CNH FAW talks end After the end of talks between CNH and FAW for Iveco sale, the spotlight is on Iveco's various endeavours as the smallest CV maker in Europe. 55 Plug-in hybrid van Quantron The electric Q-Light van from Quantron AG is now also available as a plug-in hybrid.
57 Falkatus The ‘Falkatus’ made on the Kamaz 4911 competition special two-axle chassis is used as a Russian infantry fighting vehicle.
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Driver shortage is expected to grow even more acute with the second wave of pandemic.
Optimistic Indian tyre makers
40
Ultra-low emission two-stroke is the future
44
Tyre makers in India continue to be optimistic on the basis of a medium to long term growth prospects.
An ultra-low emission twostroke engine could prove that an IC engine is not exiting the scene in a hurry.
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Commercial Vehicle www.commercialvehicle.in // June 2021
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Letters Commercial Vehicle Magazine
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D
Post-pandemic period
arrell Huntsman’s take on the CV industry’s journey in a postpandemic period made for an interesting read. His statement that he is seeing a strong recovery globally on the economic front made a positive impact. He rightly stated that different regions will drive different recovery patterns. Not having envisaged the way the second wave situation would develop in India starting late April 2021, Huntsman made an important point when he said that he is confident of China continuing to be a strong growth driver for the world economy at eight per cent. Little did he think at that point perhaps that the lab leak theory would regain strength once again in May 2021 concerning Covid-19 virus and its tendency to mutate. The Indian variant of the virus has soon turned into a strain of concern. Huntsman’s expectation that India would see a nice growth spike of 11 per cent despite being hit hard by the pandemic may not hold true unfortunately after the damage done by the second wave of the pandemic. His statement that governments will provide a stimulus for businesses to reinvent themselves and contribute to the economic growth should help the global economy to resurrect itself, India included. His observations concerning growth against rapid pace of vaccinations made for an interesting observation. Also, about commercial vehicles and fleets entering insurance business. For new and interesting business models to take hold in India, a conducive business environment and trust is necessary. Rohit Srivasatava, Mumbai
Proliferation of EVs
T
he deployment of EVs by FM Logistic provided a good insight into how the transportation industry is pursuing a need to cut down its carbon footprint. With urban regions in India battling high pollution levels, the slow yet steady proliferation of EVs is interesting from a first and last mile application point of view. The efforts of FM Logistic to leverage its knowledge and experience from running EV fleets in Europe for deploying EVs in India is a good indication of how smaller and lighter commercial vehicles in the form of three wheelers and mini-trucks could help lower the pollution and noise levels in cities. An extended range of such vehicles will make them even more practical. The falling price of batteries provides hope, but also the development of new technologies that will make alternate fuel vehicles viable in terms of business vis-a-vis the current selection of conventional fuel vehicles. The failure of experiments like the ones in Nagpur where Scania ran bio-fuel city buses and Ola ran electric cabs need to be studied in detail. This would help avoid mistakes and build business models that are sustainable. Vikas Dubey, Ghaziabad
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Pen down your views and queries to Commercial Vehicle, Next Gen Publishing Pvt. Ltd, 608, Trade World, 6th floor, C wing, 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 June 2021 // www.commercialvehicle.in
News
TVS supports Covid-19 fight T
VS Motor Company, its group holding company Sundaram Clayton and other associate companies have together pledged Rs.40 crore to support India’s fight against Covid-19. They will together provide lifesaving supplies such as oxygen concentrators, PPE Kits, medicines and medical equipment across the country under Sundaram
Clayton’s social arm, the Srinivasan Services Trust (SST). As part of the initiative, the company will supply 2,000 oxygen concentrators to hospitals and health centres and over 20,000 food packets per day for essential services workers in Tamil Nadu, Karnataka and Himachal Pradesh during the second wave of COVID-19. This will be supported
by the distribution of over a million face masks, thousands of oximeters and PPE kits, hand sanitisers and essential medicines to more than 500 government health centres and hospitals in these states. Additionally, the company will continue to facilitate all possible assistance to COVID-19 care centres in rural areas across the country.
Martin Uhlarik new Tata design head T
Henkel sees growth H
ighlighting its ability to respond flexibly and quickly to market changes, Henkel is confident that the rise in demand for its products in the industrial space will sustain itself. Announcing the achievement of significant organic sales growth exceeding 7.7 per cent in the first quarter of 2021, the company, supplying high-performance adhesives, sealants and surface treatment products to the auto industry among others, is continuing to pursue its growth agenda of further strengthening innovation, sustainability and
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digitalization. Reporting that its Group sales have reached around Euro-five billion, an increase of over 0.8 per cent in nominal terms, the company invested in a new 100,000sq. m. facility at Pune early last year. It also announced that it will invest Euro 50 million in India over the next five years. A part of this investment, it announced, will be used to build the plant and expand it over phases. Impacted by the Covid-19 pandemic, the company is experiencing good traction for its adhesive technologies business unit especially.
Commercial Vehicle June 2021 // www.commercialvehicle.in
ata Motors has announced the appointment of Martin Uhlarik as its new global design head after Pratap Bose chose to pursue opportunities outside the company. Uhlarik was till recently the head of design for Tata Motors’ European Technical Centre (TMETC). In his career spanning 27 years, Ulharik was involved in the design of successful nameplates with leading global OEMs. He joined Tata Motors in 2016 as head of design, UK, and has since led the development of the Impact 3 generation of vehicles. Continuing to operate from TMETC in the UK, Ulharik will lead teams in the three Tata Motors Design centres in Coventry (UK), Turin (Italy) and Pune (India).
news
DICV school of quality
D
aimler India Commercial Vehicles (DICV) has announced a ‘Daimler India School of Quality’ initiative to up skill its employees and present them with a robust quality mindset. Aligned with the company’s strategic objective of providing world-class products and services, the intiative is designed to enhancecore competencies of employees across all levels, and to reinforce quality as a way of life at DICV. With a tailor-made,
certified curriculum offered completely free-of-charge to all employees, DICV, through the initiative, which consists of three levels, is keen to develop a futureready employee mindset. The first batch of students comprising around 3000 DICV employees will undertake the foundation level over the next 12 months, with the secondary and university levels continuing beyond April 2022. Looking at options to offer the initiative externally as paid training
programme in the long term, the school of quality, at the foundation level covers ‘Basic Quality Tools & Methods’. At the secondary level, it covers ‘Advanced Quality Tools with Six Sigma Approach’. At the University level, it focuses on postgraduate and research programs. In other news, Parthasarathy Thota, who served as the CFO of DICV before moving to MFTBC Japan in 2016, has been appointed as its procurement head of Daimler Trucks Asia.
Tata Motors extends CV warranties; on CCI radar?
T
ata Motors has announced the extension of warranty and free service period for its CV customers across the country in view of the restrictions announced by several state Governments across India to curtail the spread of the COVID-19 virus. It applies to CVs whose warranty and free service period were
scheduled to expire in the period of 01 April, 2021, to 30 June, 2021. The company has also announced one month extension of Tata Suraksha AMC as well. In other news, sources claim that India’s competition regulator has ordered an investigation into allegations that Tata Motors abused its market position while supplying
CVs to some of its dealers. They mention that the case pertains to allegations from two former Tata dealers that it dictated terms around the quantity and type of vehicles it should stock, and also worked in concert with affiliate firms while advancing credit. In its 45 page order, the CCI, inform sources, has termed as
anti-competitive the practice by Tata Motors to ‘coerce its dealers to order the vehicles according to its own whims and fancies’. The CCI’s investigation unit, they add, has been called to submit a report within 60 days. Tata Motors, in its response, has said that it is reviewing the CCI’s order and will consult its legal counsels.
Pratap Bose moves to Mahindra?
A
fter designing some of the most successful models at Tata motors, including the Intra as part of the new design strategy for CVs, Pratap Bose is set to join Mahindra & Mahindra, claim sources. They mention that he is set to join the Mahindra Group as the head of the newly formed Mahindra Advanced Design
Europe (MADE) centre in the West Midlands, UK. For 10 years, Bose worked for Tata Motors out of their UK design centre. The MADE, as a new Centre of Excellence (CoE), and part of the Mahindra Global Design Network (that includes the Mahindra Design Studio in Mumbai, India, and Pininfarina Design in Turin, Italy),
is about strategic enhancement of Mahindra’s global design capabilities and a commitment to offer sophisticated, authentic and distinct products to its customers. To be operational from July 2021 MADE will support the creation of differentiated technology offerings in the area of connectivity and others. Commercial Vehicle www.commercialvehicle.in // June 2021
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News
New QC solution from Jidoka
J
idoka Technologies has announced the introduction of a new solution to address the growing challenges in the QC processes of the manufacturing sector. The solution is automated and cognitive. It harnesses and mirrors human reasoning in defect detection delivering 98 per cent or higher accuracy in the QC process consistently and a significant increase in throughput, besides reducing wastage by 30 per cent. Leveraging deep tech for both Indian and international markets, the solution enables
automation of the process of visual quality checks at high speed with the use of new emerging technologies like AI, ML and Analytics in a rapidly digitizing shop floor space. Having received seed
Switch Mobility appoints Sarwant Singh?
S
arwant Singh, former managing partner at Frost & Sullivan, has joined Ashok Leylandowned Switch Mobility, claim sources. They mention that he will be the president and chief planning officer, and CEO of the mobility service company and based in London, UK. The development comes in the wake of Ashok Leyland acquiring a majority-stake in the Optare Group and renaming it as Switch Mobility. The CV maker, the London-based Hinduja Group’s flagship company, through Switch Mobility, inform sources, is working towards the development of a robust electric product portfolio in anticipation of the change in the automotive ecosystem. Switch Mobility is being structured into a company that would be at the forefront of offering mobility services in the electric and other alternate fuel domains as they evolve, sources add.
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Commercial Vehicle June 2021 // www.commercialvehicle.in
funding from a leading technology entrepreneur, Jidoka Technologies will utilise it to scale up operations and to expand into new markets of North America and South East Asia. Aiming at pharma,
general manufacturing, electronics and printing among other industry verticals, the company was founded in 2018 to deliver cutting-edge engineering solutions in the area of manufacturing SaaS.
Amara Raja restarts operations A
mara Raja Batteries has resumed operations at its plants at Nunegundlapalli and Karkambadi at Chittoor District after the High Court of Andhra Pradesh granted an interim suspension of the orders passed by Andhra Pradesh Pollution Control Board (APPCB). The company will continue to engage closely with APPCB to resolve any potential issues, said Amara Raja Batteries sources. They mentioned that the company, which established a lithium-ion cell research centre at Tirupati recently, is confident of meeting all its supply commitments. The
temporary disruption caused during the last few days will not have any material impact on the operations or order book of the company, the sources added. Amara Raja Batteries is a leading lead-acid battery manufacturer in India, for both industrial and automotive application. In other news, the company has reported a profit before tax of Rs.873.33 crore for FY2020-21 as compared to Rs 840.68 crore PAT in the financial year prior. It has reported a revenue of Rs.7,149.68 crore for FY2020-21 as compared to Rs. 6,839.46 crore for FY2019-20.
News
Financial help for oxygen tanker drivers? A
t a virtual conference, convened by the commerce ministry in early May 2021, the All India Motors Transport Congress (AIMTC) is known to have urged the government to allow free mobility along with provision of food and water for oxygen tanker drivers on RORO (Tankers on Rail and Air). Sources claim that the AIMTC core committee chairman Bal Malkit Singh also stressed on the provision of financial help (either by the government or oxygen manufacturers) for the oxygen tanker transporters to meet the treatment cost of the drivers affected by Covid-19. Drawing attention to the discussion on seamless transportation of oxygen in the country amid its acute shortage in the wake of second Covid wave, sources explain that the meeting was chaired by commerce and industry ministry joint secretary Sureshkumar Nair. They reveal that other than Nair, oxygen manufacturers like Linde, Inox and UPL participated in the meeting. There were representatives of Indian
Chemical Council and Road Safety Council also. Stating that Singh mentioned about some drivers going into the rural parts of the country and testing positive every day, sources inform that the cost of treatment of such drivers was as much as Rupees-three to Rs.3.5 lakh, It was being borne by the respective transporters employing them, affecting badly their ability to sustain. Calling for fixed cost payment to the transporters on a per-kilometrerunning-per-month basis (as in normal times) in consultation with the stakeholders, Singh at the meeting, according to sources called for timely
payment, rewards, and incentives to the transporters engaged in the oxygen supply chain by the oxygen manufacturers. AIMTC, in a statement issued post the meeting, is known to point at eradicating fear among the drivers by conducting periodic counseling sessions, providing priority vaccination to the drivers, and giving them Covid-19 insurance cover. The statement read that the government has extended its support for hazardous goods bridge training for heavy commercial vehicle drivers, and to facilitate the supply of trained drivers for oxygen tankers.
DICV vaccination centre; virtual reality centre D
aimler India Commercial Vehicles (DICV) has announced the opening of a vaccination centre at its CV manufacturing plant in Oragadam. The facility, to be open from Monday to Saturday, 9:30 to 17:00, will have five vaccination booths. It will be capable of vaccinating 250 people per day and include a refreshments area, a post-vaccination lounge and a seating area for up to 300 people. Operating under the Government’s CoWIN platform, the centre will be administered by private hospital and government health personnel depending on vaccine availability. Apart from its employees, DICV is also planning to give vaccine free to truck drivers of all brands. The centre will operate as long as it is necessary. In other news, DICV has set up a Virtual Reality Centre (VRC), which allows operators to virtually perform serviceability
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Commercial Vehicle June 2021 // www.commercialvehicle.in
and accessibility checks using a digital model accessed via 3D goggles and navigational joysticks. This has the potential to transform both R&D and vehicle servicing procedures, as it reduces the need for custom-built tools, prototype vehicles, and service bays. Offering remote collaboration without the need for a physical model and workspace, the VRC enables DICV personnel to share digital models with Daimler Truck colleagues around the world, overcoming pandemic-induced travel restrictions.
news
E-way bill Padmini VNA partners integrated Saietta Group with Fastag T
o helping check GST evasion, the e-way bill has been integrated with Fastag and RFID, claim sources. They mention that the move will provide realtime data of commercial vehicle movement on highways. They also inform that additional features have been added to the e-way bill mobile application of tax officers, which will provide them real-time tracking details of e-way bill and vehicle to nab tax evaders. Under GST, e-way bills have been made mandatory for inter-state transportation of goods valued over Rs.50,000 since April 2018. Before a GST inspector, businesses and transporters have to produce e-way bill when asked for. Stating that an average of 25 lakh goods vehicles move per day in the country and past over 800 road toll points, sources explain that the integration of e-way bill and RFID will enable tax officers to step up their vigilance and curb revenue leakage through real-time identification of cases of recycling of e-way bills or their non generation. Some 180 crore e-way bills are known to have been generated in three years till the end of the last financial year.
P
admini VNA has entered into a commercial agreement with UKbased Saietta Group, which specialises in Axial Flux Technology (AFT) in electric motors. The two companies will jointly manufacture AFT motors in India to cater to the local EV market needs. Especially in two and three-wheelers. Facilitated by the UK Government’s Department of International Trade, according to Saietta sources, the arrangement to manufacture AFT motors locally is about combining the knowledge and experience of Saietta and the market experience and reach of
Padmini VNA. Catering to a wide range of auto manufacturers in India, Padmini VNA specialises in EGR valves, throttle bodies, vacuum modulation valves, pumps, solenoid valves, electronics and fuel system products among others. The AFT motors are designed to deliver good power and torque at just 48V-120V, and are enabled by their liquid-cooled mechanism to ensure a superior continuous power output as compared to the air-cooled electric motors, especially in the hot and humid climate conditions.
Virtual ACMA Automechanika New Delhi
W
ith 81 exhibitors on board showcasing 1,233 products, the ACMA Automechanika New Delhi was held virtually between April 21, 2021, and April 25, 2021. The event witnessed a wide range of product demonstrations and knowledge sessions with 2,407 active attendees. It garnered the presence of both domestic and international visitors on its platform. Some 81 companies participated, including brands like Schaeffler India, eBay, ITW, Ajit Industries, Benara Udyog, Elofic, Steel Impex, KK Lighting, Industrias Del Recambio, Farad Italy, Indo-MIM Pvt Ltd, and Esteem Auto Pvt Ltd., among others, from locations like Ahmedabad, Bengaluru,
Cochin, Chennai, Delhi, Hyderabad, Jaipur, Kolkata, Mumbai, Pune and Srinagar. International participants hailed from 49 countries, including Belgium, Canada, Denmark, France, Japan, Germany, UAE, UK, USA, Saudi Arabia, Sweden and Russia. Organised by Messe Frankfurt India and ACMA (Automotive Component Manufacturers Association of India), the highlight of the event were INA FEAD belt tensioners from Schaeffler India, seamless retail e-commerce export platform from eBay, Makino make CCA (Centrifugal Clutch Assembly), Septone foam wash from ITW Chemin, Metal Injection Moulding (MIM) parts from Indo-MIM, and Valve tappets by Shri Ram International.
Commercial Vehicle www.commercialvehicle.in // June 2021
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News
Ashok Leyland 24x7 support
A
Blue Dart Med-Express Consortium B
lue Dart India has formed Blue Dart MedExpress Consortium with the mission to revolutionise the delivery of vaccines and emergency medical supplies to the remotest parts of India with drones. A part of the ‘Medicine from the Sky’ project in collaboration with the Government of Telangana, World Economic Forum, Niti Aayog and Healthnet Global, the consortium is aiming to assess an alternate logistics route in providing safe, accurate and reliable pickup and delivery of health care
items (medicines, covid-19 vaccines, units of blood, diagnostic specimens and other lifesaving equipment) from distribution centre to specific location and back. Mentioned a Blue Dart India source that the consortium drone flights will deploy an immersive delivery model to optimise the current healthcare logistics within Telangana, enabling deliveries from district medical stores and blood banks to Primary Health Centers (PHCs), Community Health Centres (CHCs), blood storage units and further on.
shok Leyland has announced a slew of measures to support their customers and drivers amid the second Covid-19 wave. This includes emergency support to vehicles transporting essential services (including those transporting oxygen across the country through their 24x7 helpline); 24x7 services to Delhi Transport Corporation; a task force for seamless transportation of oxygen and medical supplies across India as part of the Service Mandi initiative; contactless deliveries of spare parts in-line with shifting customer preferences to continue to ensure smooth functioning of logistics and transportation services with the help of the Leykart Digital App., and extension on free services for customer vehicles in the warranty period. In other news, Ashok Leyland has announced the rolling out various employee centric initiatives to ensure good health, safety and active engagement. Some of these include instructions to the emergency response team (put in place in March 2020) and IT team to ensure physical, emotional and smooth work-from-home of employees. Wherever offices and plants are open, necessary safety protocols have been put in place. In-house doctors have been reaching out to employees. They are available on telephone for any health consultation by an employee.
Advanced traffic management
T
he National Highway Authority of India is in the process of rolling out an advanced traffic management system. Mandatory for inclusion in all new road projects, this system would improve road safety in India as well as reduce fatal road accidents on national highways. Involving the elimination of black spots on national highways across the country, the system will
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Commercial Vehicle June 2021 // www.commercialvehicle.in
include immediate identification of the location of areas where traffic bottlenecks occur because of accidents or other reasons as well as immediate provision of information to motorists on that stretch. At present, inform sources, as many as 4,500 black spots have been identified on the national highways. Of these, 2,500 black spots have been rectified. While road safety
audits are being conducted at various stages of road construction, including at the end of the project, identification and removal of black spots is also on by NHAI. India, mention sources, accounts for over 10 per cent of the accidents when it comes to global fatal road accidents, This makes it the highest in the world as per the International Road Federation (IRF).
news
Volvo-BBMP Covid Care centre
B L Passi no more
V
F
olvo Group India Private Limited has announced the setting up of a 100-bed COVID Care Centre (CCC) at Bangalore in partnership with Bruhat Bengaluru Mahanagara Palike (BBMP). The facility at CV Raman Nagar will commence operations in two phases with the first phase comprising 40 beds sponsored fully by the Volvo Group and supported by Ikea India. Equipped to cater to Covid19 positive individuals who are either asymptomatic, or exhibiting mild symptoms or seeking isolation services, the care centre is equipped with oxygen concentrators, necessary medical equipment, and amenities such as food and medicines. With furnishings by Ikea, the centre will provide treatment and care by
on-site doctors and nursing staff free of charge, as per the standards and protocol defined by the Government of Karnataka. The Volvo Group has contracted with AyurVAID Hospitals and PCMH Restore Health who will provide and administer an appropriately integrated medical approach of allopathic and ayurvedic treatment. The Volvo Group has also tied up with Aster Labs for Diagnostic Tests. Resident doctors, nurses and support staff will be stationed 24x7 at the centre. Also available at the centre is an ambulance service and, in case of escalation, the patient would be shifted by BBMP to their designated Govrenment or private hospital for further treatment.
Etrio dealer network E
trio has announced the setting up of dealerships in six states – Delhi, Uttar Pradesh, Haryana, Karnataka, Madhya Pradesh and Orissa – to market as well as sale its electric cargo three wheeler Touro. This is part of the company’s plan to extend its reach to all regions of the country. Working on plans to open dealerships in more than 15 states by the end of this financial year, Etrio, mention sources, is also keen to market and sale the Touro range of passenger electric three wheelers. The dealerships will be also used to offer electric LCVs in the one-tonne segment at a later date, inform sources. They add that the company is confident of the three
wheeler market reviving quickly post the pandemic induced restrictions. Electric three wheelers have been gaining traction steadily over the years in the cargo and passenger space due to their zero emissions nature, affordability, and suitability towards first and last mile applications.
ounder of Pasco Group, B L Passi passed away at the age of 91 in May 2021. He founded a Tata Motors dealership at Chandigarh in 1967 and laid the cornerstone for the Pasco Group, which is currently headed by his son Sanjay Passi. Under the leadership of B L Passi, the dealership, Pasco Motors turned many leaves, earning itself a reputation to provide high service standard for Tata CVs. Guiding his company to expand to six more dealerships in Ropar (Punjab), Yamunanagar (Haryana), Udaipur (Rajasthan), Gurgaon (Haryana), Faridabad (Haryana) and Rajsamand (Rajasthan), Passi was also instrumental in ensuring innovative outlook and efficient operations. He was also instrumental in getting his company to invest in modern infrastructure and instruments, in-line with the technological changes. Recipient of the Apollo CV Awards 2019-20 for the performance of its Tata Motors’ CV dealership network, the Pasco Group was among the first 15 dealers to be appointed by Maruti Udyog Limited in 1983 at Chandigarh. It now operates dealerships at Gurgaon, Faridabad and Sohna as well.
Commercial Vehicle www.commercialvehicle.in // June 2021
17
News
Truck operators demand waiver? A
Olectra Greentech and Evey Trans bag STC tender? O
lectra Greentech and Evey Trans Private Limited have been declared as the L1 bidder for another 100 electric buses by a state transport undertaking under FAME II, claim industry sources. They mention that that the two have bagged the tender to supply e-buses on Gross Cost Contract
(GCC) basis for inter-city operations for 12 years. As per the procedure, sources inform, Evey Trans will procure the 100 e-buses from Olectra once the ‘Letter of Award’ is received. They would then be delivered over a period of 10 months, valued at Rs.250 crore approximately.
CNH Industrial (India) Covid pro-active measures C
ase and New Holland Construction equipment manufacturer. CNH Industrial (India) has initiated proactive measures like daily temperature checking, maintaining social distancing, compulsory registration on the Arogya Setu app., provision of safety gear (including masks, gloves and eye-protection along with daily regular sanitization at all their facilities), insurance for all the employees and their immediate families for COVID infection, financial support of Rs.50,000 to all those employees who are tested positive or are home quarantined, home care coverage of Rs.20,000 for all employees and their families per instance, 24x7 medical consultation helpline number for employees, a dedicated task force, sourcing of oxygen concentrators, and provision of Covid Marshals among others.
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Commercial Vehicle June 2021 // www.commercialvehicle.in
IMTC has demanded waiver of goods, road and passenger taxes for at least two quarters (of the current fiscal) in view of transport operators facing acute financial strain, claim industry sources. They mention that AIMTC President Kultaran Singh Atwal has written a letter to all the chief ministers demanding exemption from penalty on delay in renewal of statutory documents in the states till September 30. Drawing attention to about 65 to 70 per cent of the vehicles being off the road, sources state that transporters in cargo and passenger space, irrespective of their size, are facing an acute financial strain. Explain sources that transporters are finding it difficult to pay the motor vehicle tax and other taxes, due since April 01, 2021. Burdened burdened with Covid-19 medical expenses concerning their drivers and other staff, sources add that transporters – the mid and small-sized ones especially, mention sources, are fighting for survival amid local and regional movement restrictions and no major business or revenue inflow to boast of. The AIMTC, mention sources, as an apex body of transporters, represents about 95 lakh truckers and other entities.
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C over Story
CV Trends
CV trends indicate a rising use of big data to shape up products and strategies.
All images for representative purpose only.
Bhushan Mhapralkar
A
new truck is about to roll out of the Mahindra & Mahindra’s Pune facility. Its ECU is being flashed at one of the last few stations on the final assembly line. Forming a core part of the truck’s functioning in realworld environment, the ECU or Electronic Control Module is highly electronic in nature. It is central to the functioning
20
Commercial Vehicle June 2021 // www.commercialvehicle.in
of the vehicle. Key to its mechatronic nature with an inline fuel injection a thing of the past, the ECU is the nerve centre of the common-rail engine powering this truck. The small aluminium cased box with heat sinks on it is at the heart of various electronic systems onboard the truck, including many other smaller such ECUs through a robust CAN-based communication
network. Forming a backbone or facilitator of smooth and efficient working of the truck, the ECU is also a point of contact for seeking information about the truck from the outside! It is also a point of contact for transmitting information to the truck. Pointing at the passage of much data that would reveal information about the health of the vehicle,
Cover Story
Big data is enabling availability of actionable information that can be analysed and used to gain a rare insight into business operations.
The new electronics architecture addresses specific equipment and application needs.
its location, the amount of fuel, speed, direction, driver behaviour, and much more, to its manufacturer as well as the operator, the new Mahindra truck, after it hits the road will be a ‘connected’ in nature. The ‘connected’ nature of this truck is quite common in the current environment. It is a key trend in automobiles. It is at the core of many new developments in vehicles CVs as well as PVs. It is about obtaining raw data from
the vehicle and vice versa in an effort to gather better understanding and insight of how things or machines work. About how they could be made to work better. It is thus the big data that is helping to acquire a valuable insight into the working of vehicles and the ecosystem that they thrive in. Helping to make vehicles safer, comfortable, reliable, efficient and cost effective, connectivity as a trend is turning out to be a big game-changer. It is facilitating the rise of big data with the use of electronic components to monitor as well as facilitate various functions on a commercial vehicle for example. Turning dealerships
smarter and significantly reducing the time taken to develop a new vehicle, the connectivity trend is fueling renewed ability to store and process data at a much larger scale. To help build machine learning and artificial intelligence (AI) tools that become more effective and place and before have. Make have lower case and join the two sentences. Have greater scale. If a lane assist system would look untenable in India until recently, the accumulation of data and its analysis would by now have created an environment conducive for a specialist company to launch a system in association with a manufacturer. Big-data The once basic dots-on-a-map reporting having progressed much, big data s a key trend indeed that is supporting a plethora of developments.
Commercial Vehicle www.commercialvehicle.in // June 2021
21
C over Story
The ITS provides an ability to sync and pair data, transport data in terms of transmission as well as acquisition, over the air.
Made slow by complex systems working in sync in an automobile, ‘Over-The-Air’ updates is no stranger to commercial vehicles.
22
Greatly empowering near real-time business analytics as predictive and prescriptive software continues to advance. The promise of further innovation simply inevitable and significant, big data is enabling an ability to look beyond basic analytics such as miles driven versus cost paid, or the ability to track vehicle location — often with significant delays in data transmission. Helping quicker evolution through better analysis with larger data sets, big data is empowering commercial transportation-
Commercial Vehicle June 2021 // www.commercialvehicle.in
focused businesses of every size to dial higher efficiency and an ability to move more per tonne of cargo. Familyrun companies with five or ten vehicles, and large corporate enterprises with 10,000 employees or more are better poised to access data and the information it would reveal. Any fleet-based company can utilize big data analytics, as mentioned above, to maximize revenue by focusing on core issues like driver safety, maintenance and fuel costs and vehicle utilisation. While there are no simple answers to how big data is aiding to overcome challenges like rapidly rising fuel prices and that of consumables or the need to comply with rules and regulations, big data, it is
evident, is proving useful to up efficiency and productivity. Tapping recent improvements in technology and methodology, it is enabling the ability to capture and process large quantities and varieties of data. The improvements in technology and methodology has made it simpler to adopt and implement new changes and processes. The big data obtained from an existing truck to ascertain how a new product could be made to weigh less, carry more payload, etc., is turning out to be an exciting proposition. Also, the ability to engineer products that attain better fuel efficiency through aerodynamic changes; through fuel metering and engine technology changes. Empowering people and organisations to look ahead of the time, big data is at the core of key trends visible in the CV industry. It is about a massive pile of information that brings with it the challenge of analysing and categorising it. It is also about turning it valuable and actionable; about making it descriptive, predictive and prescriptive. Interestingly, it is not just the OEMs that have been actively harnessing big data, there are firms that are working in the field of mass mobility which have been actively harnessing dig data as well. ITS and OTA By actively harnessing big data, mass mobility firms have been gathering rare insights into developing tailored solutions, into attracting specific market segments, in enhancing service quality, and in delivering time and mission critical solutions. Bangalore’s
Cover Story
The key trend of CV cyber security is made important by the fact that a hack into a truck’s CAN system can be catastrophic.
BMTC for example has fitted each bus with a GPS unit. It has provided every conductor with a smart ticketing machine. As part of the ITS, it has bought itself the ability to solve issues of urban transport. The best part of this system is perhaps its ability to sync and pair data, transport data in terms of transmission as well as acquisition, over the air. It is a matter of time when ‘Over The Air’ (OTA) upgrades will be a common thing in CVs, mentions a technical expert. Automotive OEMs, he adds,
are already OTA software upgrades (also termed as patches) since 2017 and 2018 in many parts of the world. The transition to BSVI has made it possible for OEMs in India too, he asserts. If the adoption of OTA has been slow, it is because automobiles, agricultural machinery, and industrial machinery are complex than smartphones and involve multiple moving parts controlled by ECUs. Vehicles have hundreds of microprocessors consisting of a few hundred million lines of code. OEMs are claimed to be developing OTA platforms in-house as well as in collaboration with OTA software and hardware solution specialists. Proliferation of OTA platforms is also giving rise to the trend of automotive cyber security.
Cyber security for commercial vehicles is of paramount importance. Mentions Gloria D’ Anna, the author of ‘SAE CyberSecurity for Commercial Vehicles’ that the CAN architecture of CVs lags behind PVs in their ‘open-ness’. She avers that the CAN architecture in a CV is dictated by the integration of aggregates that are sources from different suppliers. A hack into a truck’s CAN system can lead to a catastrophe, she quips. On a larger scale, it could cause the nation’s supply chain to collapse, she adds. As more and more CVs get connected, cyber security takes on a completely different level of relevance in terms of safety, security and productivity, mentions a technical expert working in the CV industry in Europe. It may not apply so much to India at this moment, he adds. The transition to higher emission levels and more automation will however require that any possibility of hacking is minimised, he informs further. Automation Empowered by big data, and technological developments in the area of AI and IoT, automation to enhance safety, comfort and security is also one of the key trends taking root in CVs. In India, it is only starting to take off. It is however set to have much bigger appeal amid the challenge to keep costs down and improving road infrastructure. Automotive systems suppliers like ZF are at the forefront of this effort. While CV makers like Daimler have already launched their first road approved truck for autonomous operation in US, the ability to regulate it, standardise it, and the
Commercial Vehicle www.commercialvehicle.in // June 2021
23
C over Story
Automation to enhance safety, comfort and security is also one of the key trends taking root in Cvs
24
ability to ensure accountability are posing some limitations. Against such a background, the good part is, the truck driver is getting closer to realise his dream of being free of the steering wheel. This would help him or her to get to the role of a truck manager. Autonomous driving experiments are also being carried out in Europe. Experiments of reaching Level-Five autonomy are also underway in China. In India, the trend might take longer considering the market mind set, infrastructure and population. With huge potential in IT and analytical skills, a large portion of R&D and technological development in autonomy is being contributed for by the
Commercial Vehicle June 2021 // www.commercialvehicle.in
country. In fact, the experiments in the field of agricultural tractors regarding autonomy are expected to rub off the CVs sooner than later. A suitable legislative system and an open public opinion about such developments will need to be built. An SAE paper released last year states that commercial vehicle manufacturers and suppliers, despite a pandemic that continues to punish global economic markets, have not relaxed efforts to bring high-level (SAE Level 4 or 5) autonomous trucks to market. The paper seeks attention to partnerships with self-driving tech startups as a big part of the roadmap, the latest example of which is the announcement by Navistar to co-develop SAE L4 trucks (targeted for production by 2024) with TuSimple. Stating that challenges pertain to the
hard part of understanding how AI will deals with situations that happen uncommonly or are referred to as edge cases, an industry expert says, finding robust data sets of novel edge cases is something that will need a lot of investment and expertise. Rather than seeing exponential improvements in the quality of AI performance, the trend seems to follow exponential increases in the cost to improve AI systems, he adds. The realisation of an autonomous CV, it is clear, depends on on the usage environment, or Operational Design Domain (ODD). In controlled environments that can limit or eliminate unexpected obstacles and other unpredictable vehicles or scenarios, such as mining sites, ports and industrial areas, highly automated or even fully autonomous CVs already can be found. However, for longhaul trucking, where there’s perhaps the ‘biggest need and highest efficiency’ potential for autonomy, the operating environment is anything but predictable. The need is for a robust failure detection and the reaction strategy.
Special report
A year like no other The year 2020 was an extraordinary year for the CV industry. Shyam Maller
A
black swan event for the Indian and world economy, FY2020-21 saw cataclysmic ramifications across businesses, sectors and human lives. Transitioning to BSVI that pushed the prices of vehicles up by 18 to 20 per cent, the CV industry, in FY2020-21 had to deal with the massive body blow of the Covid pandemic. Plagued with excess capacity (mainly due to the new axle norms of 2018) and already experiencing a sales decline post a peak of FY2018-19, the CV industry faced strained finance availability as banks and
financial institutions tightened lending policies. Staring at a new world order where things would never be the same again, the CV industry found itself in a situation that looked no less than a gigantic catastrophe. The chart (FY21 vs FY20) aptly highlights what FY2020-21 was like for the CV industry. It puts forth numbers that point at the pain the CV industry bore. The domestic CV industry volumes were the lowest since FY2010-11 and the most extensive damage was faced by the bus segment. The M&HCV segment followed. In fact, the bus segment led (largest
FY21 vs FY 20 APR20-MAR21
APR19-MAR20
%DECLINE YOY
ILCV
74385
82303
-9.6
BUSES
11495
64069
-82.5
M&HCV
111676
141549
-21.1
SCV
389386
411285
-5.3
DOM CV
603770
730252
-17.3
SEQUENTIAL QUARTERWISE TIV GROWTH FY21
ILCV
Q1
Q2
Q3
%GROWTH Q3VSQ2
Q4
%GROWTH Q4 VSQ3
1997
13285
24733
86.2
34272
38.6
BUSES
669
1900
2648
39.4
6255
236.0
M&HCV
3625
18274
35738
95.6
53667
50.2
SCV
25232
98375
114829
16.7
137510
19.8
DOM CV
32427
136471
183288
34.3
237778
29.7
contributor) the industry to record a decline of 17.3 per cent on a YoY basis. The Sequential Quarterwise TIV (Total Industry Volume) growth FY21 chart provides an insight into how the TIV evolved through the year. Barring the bus segment, the industry sales volumes started picking up from October 2020. Supported largely by the rise in home deliveries of groceries and other essentials, SCVs were the quickest to ride into the positive territory. Through much of the last financial year, the decline in sales was benign (compared to other segments) on a YoY basis. The e-commerce segment that rode the logarithmic rise in online shopping was one of the primary contributors to the growth of the I&LCV segment. The new axle norms meant that a 16-tonne GVW ICV segment vehicle could flaunt a payload of over 11-tonne. It could also boast of a cargo body of up to 31 feet, ideally suited for volume rich consignments of the e-commerce segment for interstate logistics – at higher speeds (faster TAT) and with an optimal TCO when compared to the erstwhile 4x2 vehicles with a 16.2-tonne GVW. Powered by six-cylinder engines, these would also sip more fuel.
Commercial Vehicle www.commercialvehicle.in // June 2021
25
Special report
Introduced in two variants, i3 and i4 with segment leading payload capacities of 1860 and 1405 kgs, the Ashok Leyland Bada Dost has highlighted the segment’s ability to evolve and innovate.
To motivate, to innovate Keeping itself motivated and continuing to innovate, the CV industry in FY2021-22, witnessed the Multi-Axle Vehicles (MAVs) under the HCV segment getting severely impacted. The reason was attributed to the fall in demand. Truck fleet utilisation, in fact, never exceeded 75 per cent. Significant price hike (18-20 per cent) accompanying BSVI transition dampened the environment. Other costs, which would push the TCO up, compounded the situation. Many buyers turned to used and repossessed BSIV CVs as financiers reduced the LTV (Loan To Value) for new vehicle
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Commercial Vehicle June 2021 // www.commercialvehicle.in
purchases. The tipper segment (consisting predominantly of multi-axle tippers) solely bolstered the M&HCV segment. It contributed 41.5 per cent of the TIV as compared to 33 per cent in FY2019-20. M&HCV -Industry Analysis The ‘M&HCV – Industry Analysis’ graphics clearly indicates how and what the CV industry segments were like in FY2020-21. The other graphics, ‘MAV Trends’ provides an insight into multi-axle vehicle trends. The shift to higher GVW vehicles – particularly the 42/48T GVW trucks, point at the ‘Hub & Spoke’
transportation model. The phenomenon gained currency in FY2020-21 some more. It also contributed to better economics in terms of lower cost per tonne km. The graphics concerning tippers – ‘Tipper Trends, underlines the rising usage of multi-axle tippers, namely of 6x4 and 8x4 axle configuration. Ready Mix Concrete CVs (built on multiaxle tipper platform) became all-pervasive in the construction section in FY2020-21. They too figure in there. The bus segment was almost vaporised as the fear (Covid induced the need for social distancing) of infection
special report
M&HCV -Industry Analysis FY20 : 141549
FY21 : 111676 TRACTORS 20268
4x2 R 18812
TRACTORS 14862
13.30% 16.80%
14.30%
28.40%
41.50%
4x2 R 24173
17%
35.60%
33% MAV 31665
TIPPERS 46673
MAV 50435
TIPPERS 46337
FY19 : 295347 4x2 R 31076
TRACTORS 48871
16.50%
30%
10.50%
42.80%
TIPPERS 88864
MAV’S TRENDS
14.4%
17.2%
2018-19
2019-20
26.8% 2020-21
84.6%
46,300 TIV
20.5%
86.3%
46,700 TIV
34.5%
4x2 : 18.5T GVW 6X4/8X4 : 25/28T/35T GVW
52.8% 31,700 TIV
50,500 TIV
26,450 TIV
31/35T GVW
48.3%
55.4%
30.2%
TIPPERS TRENDS
88,900 TIV
25/28T GVW 37/42/48T GVW
MAV 126536
87.5%
13.7%
15.4%
12.5%
2018-19
2019-20
2020-21
Commercial Vehicle www.commercialvehicle.in // June 2021
27
Special report
A move to application-based offerings saw the introduction of BSVI CVs like the Ashok Leyland 4120 in FY2020-21. saw BSVI Cvs like the Ashok Leyland 4120 being introduced. It is India’s first four-axle truck with a 40.5 tonne GVW. Its 8×2 DTLA (Dual Tyre Lift Axle) arrangement enables it to carry an additional five-tonne as compared to the standard 8×2 trucks and deliver better TCO.
kept masses away from almost any form of shared mobility. Sales of school, staff and tourist buses took a hit. Also that of buses and chasses procured by STUs. Ditto for buses/chasses procured by STU’s. If the lockdown had an advesre effect in the first
ILCV COMPOSITION
2018-19
28
34% 2019-20
53,000
66%
72%
21,000
33%
54,000
67%
28,200
38,500
78,800
LCV 5T-7.5T GVW ICV 8T-16T GVW
28% 2020-21
Commercial Vehicle June 2021 // www.commercialvehicle.in
half of FY2021-22 on public transportation; on intra-city and inter-city buses, the second half did not yield any particular gain either. It, in fact, indicated that the return to pre-Covid levels will take years. I&LCV Industry Analysis Particularly in the eight to 16-tonne GVW range, the going was surprisingly as well as fortunately good. The eight to 16-tonne GVW vehicles from the I&LCV segment witnessed good traction on the basis of e-commerce boom and an uptick in some other traditional segments like perishables (fruits and vegetables, dairy and poultry products, and a few others). ICVs reigned supreme on inter-city and regional routes because of their ability to deliver on speed, fuel efficiency and reliability. For time sensitive cargo deliveries, ICVs proved
to be the most preferred vehicles in FY2020-21. An insight from the study of five to 16-tonne GVW vehicles pointed out that the share of eight to 16-tonne GVW vehicles in the I&LCV segment rose from 66 per cent in FY2019-20 to 72 per cent in FY202021. A look at the chart – ILCV composition, and it will be clear at once. Interestingly, the share of CNG trucks in the I&LCV segment increased by double digits. It could be attributed to hefty price escalation of diesel fuel in a short time and the expansion of CNG network. Used to cover a radius of 200 kms roughly, CNG trucks in the five to nine tonne GVW category were once the most sought. That trend, it looks like, has now shifted to the 12 to 16-tonne GVW category. These trucks are typically used for regional distribution.
special report Finding new ways to conduct business The good performance of some of the CVs during FY2020-21 could be credited to the resilience and motivation displayed by their manufacturers. The entire CV industry, in fact, found new ways to work. Against a hostile atmosphere of fear and uncertainty as the pandemic spread its tentacles, shuttering all businesses, manufacturing facilities and service industries in one sweep, the CV industry refused to give up. Despite being badly impacted, it made sure that the country’s supply
chain did not collapse. If the sudden emergence of Covid in India, and the ensuing lockdown saw companies across sectors and their managements go into a huddle, the CV industry steadfastly charted plans and strategies to ride out of the gloomy situation. It reimagined, re-jigged, revived and restarted plants and processes quickly after the lockdown without violating the guidelines put in place by the governments. It put SOPs in place, re-activated its supply chains, re-engaged with the employees and
even provided fiscal relief where it was found to be necessary. Under the overarching umbrella of safety and health protocols across manufacturing locations, supplier facilities as well as in the sales and marketing organisation besides dealerships, the CV industry embraced digitalisation. Switching to digitalisation across the entire value chain, the CV industry found a way to regenerate demand. It found a way to engage with customers and dealers. Social Media, email marketing, virtual Zoom meetings,
The Ultra Sleek T. Series of LCVs from Tata Motors, introduced in March 2021, for urban deliveries using a 1.9 m narrow cab and four- or six-tyre combinations is a good example of the changing mix in I&LCV segments. The series’ payload capacity ranges from 3.3-tonne to 5.2-tonne.
Commercial Vehicle www.commercialvehicle.in // June 2021
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Special report
Tata Motors launched the Signa 3118.T in FY 2020-21 as country’s first three-axle 6×2 truck with 31-tonne GVW. Innovative and application-based CV capable of filling up white spaces, the 3118.T helps to transport 3,500kg higher certified payload than a corresponding 28-tonne GVW rigid truck. Capable of enhancingnet operating profit by 45 per cent, the truck positively influences operational costs, including fuel and tyre consumption.
mobile apps., WhatsApp and the web transformed into the primary channels of communication. These methods improved customer experience by increasing the response speed to complaints or any other queries. Seeking higher profit and cost control by trimming travel and conventional marketing media spends, the CV industry discovered new means of enhancing productivity and optimising EBITDA among others. Quickly adapting to hybrid work-from-home ways of working, the CV industry successfully tackled the weak link exposed by the pandemic too. The industry also witnessed dealers exiting business due to financial indiscipline. Desperate times, extraordinary deeds Through extraordinary deeds of
30
Commercial Vehicle June 2021 // www.commercialvehicle.in
supporting fleets by means of emergency repair and service, the CV industry earned newfound admiration for itself. The teams at dealerships braved the whimsical rules and behaviour of the local and regional authorities despite the necessary permissions. The OEMs stood by their dealers and other stakeholders. Some of them even went to the extent of helping dealers to retain employees through incentives. They hand held the dealers by quickly rolling out interest subsidies on vehicle and parts inventory. Watching an uptick in rural economy (on the back of a good monsoon) lead to a surge in tractor demand, the CV industry hoped that the effect will rub on it too. Not the one to be de-motivated, it quickly responded to the effect of vibrant rural markets in terms of the demand for SCVs,
LCVs and ICVs. To an extent, it helped offset the sales lethargy in urban areas. The exponential growth in online shopping and essential deliveries post the lockdown in FY2020-21 led to the CV industry witness an uptick in SCVs, LCVs and ICVs too. e-commerce players like Amazon, Flipkart, and their logistics partners like Delhivery scaled up their operations. They turned to new start-ups and retrofitment companies to address their demand for zero emission urban delivery mediums. Excess freight capacity due to low fleet utilisation coupled with BSVI price escalation put a lid on M&HCV long-haul multi-axle segment almost. Instead, used trucks companies saw their transactions rise with sales from either trucks surrendered by transporters or repossessed
special report
Reflecting CV industry’s ability to innovate, the 4x2 BharatBenz 5228TT tractor-head, launched in FY202021, has come to offer the highest 54-tonne GCW that a 4x2 tractor-head could.
by financiers. The multi axle tipper segment came to be the main stay of the M&HCV segment in FY2020-21. It accounted for 41.5 per cent of the total M&HCV’s sold in the respective fiscal. Battling slowdown in sales since Q2 of FY2019-20 and also successfully executing BS VI transition, commercial vehicle manufacturers were forced into emergency response mode in FY2020-21. Without transgressing the safety protocols and guidelines in place, OEM’s had to find ways to address the market needs and compete. New Product introductions like the Bharat Benz 5228TT, Ashok Leyland Bada Dost, Tata Signa 3118.T and Ashok Leyland AVTR 4120 reflected this quite effectively. If the sequential month-on-month growth in high frequency indicators like GST collections, electricity consumption and the PMI (Purchasing Managers Index), which has been consistently been above the 50 mark, indicated economic resurgence
in the fourth quarter of FY2020-21, the rearing of the ugly head of Covid once again and with renewed ferocity, the FY2021-22 has begun on a disruptive note. Severel regions and states have announced lockdowns, either fully or partially. Looking ahead The spike in Covid infections and related deaths arising from the 2nd Wave, is a worrying development for the economy as well as the CV industry. It has brought with it signs of much disruption, and enough to spoil whatever progress was made in the last quarter of FY2020-21. The first quarter of FY2021-22 will be an extremely challenging if not a wash-out (as it appears now). It is very likely to be extenuating. Against the potential damage to lives and livelihoods caused by the second Covid wave, it will need to be seen how the growth oriented Union Budget (presented on February 01, 2021) stays on course. It marked several measures and outlays for the
Construction and Infrastructure sector in terms of providing an impetus to the nation’s economy. As a reflection of a nation’s economy, any change is certain to rub off the transport sector and the CV industry as a whole. Challenges like rising retail price inflation, IIP (Index of Industrial Production) trajectory, unemployment, petroleum prices, high commodity prices and material shortage, a pandemic that does not seem to go yet, there is no doubt that the CV industry will have to motivate itself some more. It will have to also innovate some more. Be sensitive and accommodating of the fact that gross fixed capital formation that is key to GDP growth is virtually non existent. In the short-term, it will be the government capex on infrastructure that will be the savior for the CV industry. ......................................................... The author is former Executive Vice President - Sales and Marketing at VE Commercial Vehicles Ltd. The views expressed by the author are his personal opinion and do not necessarily reflect the views of the CV magazine.
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C over Story
Transporters face fuel price hikes The series of fuel price hikes have added to transporter challenges. Bhushan Mhapralkar All images for representative purpose only.
T
he May 11, 2021, fuel price hike pushed petrol beyond Rs.100 per litre at Parbhani in Maharashtra, and diesel within brushing distance of Rs.90 per litre. Adding to transporter challenges, the trend continues with petrol costing Rs.98.88 per litre in Mumbai and diesel costing Rs.90.40 per litre respectively at the time of going to press. Coming amid a sluggish economy and Covid-19 ravaged environment where the second wave has proved to be more devastating than the first one, the fuel price hike series, seem to be unrelenting. Adding to the transporter woes, the series of fuel price hikes are said to fuel inflation and drive the cost consumables up. Compelling a visit almost to what is termed as the steepest fuel hike ever in the country’s history, which took place mid-last year with a tax levy of Rs.10 and Rs.13 on every litre of petrol and diesel respetively, the fuel price hike series took a short break this year for state elections only. Claimed to not follow the change in international crude prices in spirit, the fuel price hikes in India, mention sources, are subject to political and economic tides. They stress that the reason given for the steep hike in excise duty
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mid-last year (and amid the first Covid-19 wave) was the need to sustain economically in a challenging environment. When the steep fuel price hike took place mid-last year, a transporter reasoned that
they would rather concentrate on matters of more immediate importance. Fuel hikes, he quipped, were never rolled back however one agitated against their rise. The demand by transporters to be given a
Cover Story
helping hand to get back on their feet after a crippling two months lockdown did not yield any response, neither did the demand for CV drivers to be given the status of frontline wariors. The two months lockdown last year, termed as the strictest in the world, affected the economy and drove many transporters out of business as utilisation fell drastically. Refusing to stall, the fuel price hikes, starting with the steepest hike mid-last year have continued till date. By the end of 2020 – on December 07, 2021, to be precise, the price of petrol and diesel were hiked by 30 paise per litre and 26 paise per litre respectively. This elevated the price of petrol to Rs.90.34 per litre (Mumbai) and
that of diesel to Rs.80.51 per litre (Mumbai) respectively. A series of near continuous price hikes post that meant petrol cost Rs.92.86 per litre in Mumbai and diesel cost Rs.83.30 per litre in Mumbai after the January 27, 2021, hike. High taxation Adding to the inflationary pressure, and an economy affected badly by the Covid pandemic, petrol and diesel prices rose to Rs.97.57 a litre and Rs.88.60 a litre, respectively. The basis for this was the benchmark Brent crude, which continued to be above USD 66 a barrel. A call for lowering the taxes on fuel did not yield any response. The usual reason fowarded was the complex pricing structure of the
fuel and the levy of taxes by the centre and the states. Despite much demand, petrol and diesel fuels have not been brought under GST. Mention sources that the central government currently earns an excise duty of Rs.32.90 per litre of petrol sold and Rs.31.80 per litre of diesel sold, respectively. The state governments charge a value-added tax or a sales tax on every litre of petrol and diesel sold as well, they add. The rate, it is no secret, varies across states. Explaining that the governments are not keen to bring both the fuels under the ambit of GST because they will not earn even a fraction of the taxes they are currently earning if they were to levy a tax rate of 28 per cent,
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C over Story
sources inform that petrol and diesel rates will have to be very high. Even higher than 100 per cent, they quip. While current taxes on petrol and diesel are more than 100 per cent, the system of taxation is claimed to be lacking in transparency. Most people do not realise the high taxes they are paying, sources reveal.
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The transporters, it is not clear, could be among them. They are certain to be aware of the taxes and other compliance costs they are paying on diesel that they incur to operate their CVs. A strike called by the transporter bodies across the country against a steep fuel price hike in 2018 (as one of the agendas) did not yield the desired result.
What it yielded instead, it looks like, were the new axle norms! The new axle norms created excess capacity in the market overnight almost. They followed hot on the heels of the GST that added a new element of e-way bill and forward and reverse charge mechanism. Small transporters have since found it tough to do business. Many have exited the scene and many others are on the verge of doing the same. Explain sources, that many transporters are working on negative profits. They are running the show because they have to. The most recent series of fuel prices hikes, which takes petrol beyond Rs.100 per litre and diesel closer to Rs.90 per litre, has added to their challenges in the wake of a dull economic scenario. They have had a cascading effect on the overall costs. Those who are capable of buying more efficient CVs hold a better chance. But, then the recent price hike in the
Cover Story
region of four to five-per cent and the significant BSVI price hike haven’t been kind to the transporters either. It has been a double whammy for him. Those running their vehicles on CNG have not been very lucky either. CNG prices The prices of Compressed Natural Gas (CNG) have been increasing steadily even though not in tandem with petrol and diesel price hikes. The most recent hike, and a fairly substantial one, could be traced to February 2021. In order to partially cover increases in operational, manpower and fixed costs experienced during the pandemic caused by Covid-19, Mahanagar Gas Limited (MGL) increased its
CNG price by Rs.1.50 per kg. CNG in Mumbai is known to currently cost a little under Rs.50 per kg. In Delhi, it is claimed to cost Rs.43.50 per kg. In India, there are about 2,208 CNG stations. The Government
has announced that it wants to achieve the goal of 10,000 CNG stations in the country. If CNG looks like a cleaner, alternate fuel for urban fleets, LNG could be the cleaner, alternate fuel of choice for long-haul ones. The Government is said to be setting up 50 LNG stations along the Golden Quadrilateral. This would be expanded to 1,000 numbers in three years. Some eight to 10 lakh trucks are expected take to it by 2035. With long-haul fleets poised to gain from one tankful range of 700 to 750 kms of LNG, the prices of the respective fuel are expected to be attractive. If it would help the transporter’s TCO is what will make the differenace. At the end of the day, it is what will matter the most.
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In focus
Driver Shortage Driver shortage is expected to grow even more acute with the second wave of pandemic.
All images for representative purpose only.
Bhushan Mhapralkar
M
adhav runs a fleet of four Tata Ace in Pune. He pilots one of the vehicles whereas the other three are piloted by his band of drivers. All the vehicles operate in the industrial belts in and around the city, ferrying industrial goods among others. The current lockdown in Pune in view of the spike Covid infections has affected Madhav’s ability to operate at full strength. All three of his drivers have gone to their homes. They hail from Bihar and Uttar Pradesh. Left with just one vehicle to operate, Madhav is experiencing a big drop in ultilisation levels. Over phone, he states the lack of drivers is hurting the business. But then, he quips, it is also the case that industries have seen a huge drop in their operations. The lockdown that was announced in the second half of April 2021 has had a negative effect on industrial productivity. Plants in the industrial belts aren’t working at full capacity and the flow of raw material as well as the finished goods has slowed down considerably. The shortage of oxygen has put paid to any efforts to their operating smoothly. As industries slow down and shops remain closed, except for essentials, fleets other than those in the e-commerce and a few other sectors like pharma, the road transport fraternity has come to feel the pain.
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Much like last year. This is in-turn reflecting on the economic and social environment. It is also signaling driver shortage in the coming months as fears of nation-wide lockdown erupt. Especially on the minds of those that have travelled thousands of kilometers from their homes to work. It is no secret that many commercial vehicle drivers have migrated thousands of kilometers to work. That, they have left their families at home. The case of Madhav’s three drivers for example. In the case of heavy vehicle drivers, the situation could be a little different, mentions an industry source. He draws attention to measures taken by fleets to retain their drivers before expressing that the sudden change in atmosphere after a few months of demand rebound and a slow walk to normacly seems to play on the minds of all the people. Drivers clearly are not immune to that, he adds. In a situation were security seems to be at stake, even the provision of better driving and boarding conditions will not suffice, mentions another source. It will help to an extent, but not beyond, he quips. Interestingly, the recent annual driver shortage survey by IRU announces that driver shortage will soar in 2021. It is based on a survey sample of 800 road transport
in focus
companies across 20 countries. Citing that China fares better with four-per cent jobs open among the 20 countries involved, the survey points at driver shortage across truck and bus segments in 2021. Shortage of CV drivers? Shortage of commercial vehicle drivers in India is no secret. How bad it is, is also not a secret. Neither is the lack of professional drivers. Mentions the source, driver
shortage in April 2021 and May 2021 was high as many chose to return to their families. Many operators also laid them off temporarily in anticipation of falling utilisation levels, he adds. If the change in axle norms in 2018 and the economic slowdown of 2019 affected the road transport fraternity, the first Covid wave proved to be the last straw on the camel’s back for many. The transition to BSVI and the subsequent jump in new
vehicle prices did not help either. The announcement of scrappage policy brought another round of rethink in the road transport fraternity. The effect of the regulatory measures, starting from the transition to BSIV have been immense. How they boil down to the generation of new drivers or driver shortage is not clear yet. Especially from the point of view the machines turning modern and more comfortable to drive. Some are of the opinion that applicationbased higher tonnage trucks will help mitigate driver shortage whereas some are of the opinion that driver shortage will get worse as normalcy returns to the trade. Lack of respect? Stating that the lack of respect and harrasment by authorities is turning out to be the main reason for many desisting from taking up the profession. So, the emergence of drivers as a gradual upliftment of a spotter continues to an extent even today. If a fleet would want to invest in driver training? The advent of BSVI trucks and the change in operating economics has paved the way to an extent, says a source. However, there’s more that can be done to address the issue of driver shortage, he mentions. Expresses a midsize transporter from Indore over phone. He is finding it tough to sustain on the basis of the rising costs of doing business. He points at the high fuel prices, rising consumable prices and the high compliance costs. At the other end, he says, business has dropped significantly and freight rates are not very conducive.
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In focus
Incidently, the freight rates on trunk routes have shot up primarly due to the less availability of trucks lately! On the issue of driver shortage, he says that since the utilisation levels are low, he is managing. States another transporter from Hubbali that the shift in operating economics has made it necessary for him to acquire a truck costing between Rs.45 and Rs.50 lakh. The way the business is turning out to be, it is not giving him enough confidence to acquire a machine of such cost. He is make doing with what he has. Luckily on the driver front he is
managing to handle a certain attrition rate. With vehicle utilisation levels lower than before, the shortage of drivers may not be felt as much by many transporters. However, predicts the industry source, it will be felt when the demand robounds. This, he adds, could be in FY2022-23 as the country drives out of the shadow of Covid whose second wave is currently creating havoc. Anticipates IRU Secretary General Umberto de Pretto, “As economies recover and demand for transport services increases, driver shortage threatens the
functioning of road transport, supply chains, trade, economy and eventually employment and citizens’ welfare.” A Mumbai-based transporter, into supply of raw material to industries on the outskirts, is of the opinion that working in this front-line, essential position throughout the COVID-19 pandemic has been challenging for his drivers. Despite much call for help by the drivers (and fleet owners for their drivers to be given a health cover) who risked their lives during the first wave last year to keep the supply chain from collapsing, the government has done little, he rues. States another Mumbaibased transporter on the condition that his name should not be disclosed, that the government turned its back to the drivers of commercial vehicles who kept the nation’s supply chain from collapsing. The government did not even bother to heed to the prayers of helping the transport fraternity get back on its feet after a two month hiatus, he avers. About driver shortage, he is currently managing he says with the utilisation levels low and the business down. A reluctant youth? With the youth not keen to take up the job of a commercial vehicle driver, the average age of the driver is fast growing. Most long-haul truck drivers are above the age of 35, states an industry source. Sometime back, there was a talk of uneducated people being granted a licence subject to scientific driver training. The IRU report states the average age of professional truck drivers globally is now close to
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in focus
50. It is steadily growing older each year, it highlights. It also forecasts that this demographic time bomb will only get worse without action to reduce minimum driver age. Pointing at unemployment numbers, a fleet manager in India quips that the lack of respect is a big inhibitor. He also speaks of social constraints like the refusal of families to marry their daughter to a truck driver. Despite being well-paid, the number of new long-haul drivers continues to be scarce because of the reluctance to stay away from the family for an extended period, the
manager adds. Interestingly, the IRU report puts the minimum age for professional drivers at 21 or higher in many countries that it surveyed. This creates a large gap between leaving school and taking the wheel. Professional training schools have emerged on the scene with CV manufacturers like Ashok Leyland and Volvo taking the lead. How much have these helped? Yes, mentions a source. If they have been able to pull a good amount of youth as a means of employment? The answer is a ‘yes’ and ‘no’. He explains: “The youth is simply reluctant to
take up the job of a CV driver because it lacks respect and is subject to much harrasment. He pints at instances being widely reported last year. Despite permission, drivers were harrased by authorities and others despite rendering essential services. With no eateries or boarding facilities operating, they were subjected to much inconvenience and anguish as the state borders closed and Section 144 was imposed. Highlighted the source that poor treatment at delivery sites and temporary border controls, it is clear, isn’t helping either. Longhaul drivers, the he avers, are growing scarce not because they are not getting paid well, it is because they do not enjoy good working conditions in terms of respect, boarding and security. Announces the IRU report: More investment in safe and secure truck parking areas to fix the current massive global shortfall would make long-haul driver conditions safer and get more people behind the wheel. The report also stresses on training and certification as a vital medium to attract and develop skilled drivers, especially with new technology, safety expectations and compliance standards. Yet another important point the IRU report raises is the need for governments to act. Says Umberto, “If governments do not act now to ease access to profession, improve working conditions and upskill the workforce, driver shortage will continue to disrupt and eventually irreparably damage vital mobility networks and supply chains.”
Commercial Vehicle www.commercialvehicle.in // June 2021
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Tyre Talk
Optimistic Indian tyre makers
Tyre makers in India continue to be optimistic on the basis of a medium to long term growth prospects. Team CV
E
xpected to witness a swift recovery in financials during the second half of the fiscal on the basis of a recovery in Indian operations and continued expansion in the European market, Apollo Tyres has reported a 270.5 per cent year-on-year increase in consolidated net profit of Rs.289 crore for the quarter
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ending 31 March, 2021. It is bullish about a possible recovery in commercial vehicle sales after almost two-anda-half years. Said to spend on maintenance of plants; on digitisation initiatives, and infrastructure, the leading CV tyre maker is well-poised to cater to the rise in demand. With the annual maintenance capex claimed to be in the
region of Rs.200 to Rs.250 crore, Apollo Tyres is said to be ramping up its Andhra Pradesh plant as per its second phase of expansion. It is expecting to hit a planned capacity of 50,000 passenger car radials per day and 3,000 truck-bus radials per day at the respective plant by March 2022, according to sources with knowledge of the development. Known to have 90 per cent TBR utilisation level in the last quarter of FY2020-21, Apollo Tyres, mentions sources, got a nod to re-start its Kerala (Perambra) plant from the local authorities starting May 21, 2021. This plant should help the company to reduce any bottlenecks it would be facing, inform sources. Announcing a fresh investment of Rs.1200 crore towards expansion of truck and bus radial capacity (at its existing plant at Halol and brownfield facility at Chennai), Ceat Tyres experienced good
Tyre Talk
growth in the last quarter of FY2020-21. Buoyed by good market response, the company, state sources, has decided to invest half of Rs.1200 now and the rest once the market prospects become stronger. Lining up a capex of Rs.1000 crore in FY2021-22, the tyre maker, keeping a tab on financial efficiency as challenges like increase in commodity prices emerge, is keen to increase its share of the TBR market. With the commodity challenge said to erode gross margins and prompt Ceat Tyres to take a small increase in price, the company is watching closely the effect of pandemic on urban and rural market sentiments. As frequent lockdowns and high commodity prices lead to industry-wide concerns, the
company in claimed to examine its production strategies. Said to evaluate re-calibration of production on the lower side, Ceat Tyres, in an effort to support its customers, has extended the warranty period on its range of tyres by another three months. The warranty extension by three months is applicable for products whose standard warranty is expiring between April 01, 2021, to June 31, 2021. Either contemplating or carrying out a price increase on the back of rising input costs, tyre makers in India continue to be optimistic of the market picking up sooner than later. Especially confident of good medium to long term industry prospects, they are investing in modernising their infrastructure and processes; in eliminating any bottlenecks and preparing themselves to a rebound in demand over time. With the government kicking off the process to bring a new regime for tyres used in cars, mini bus and heavy vehicles to improve fuel efficiency, safety and noise reduction, tyre makers in the country are confident of meeting the respective regulations. Claimed to come into effect from October 2021, the new norms are expected to change the market outlook for tyres as a commodity, and as a service. Tackling pandemicinduced short term disruptions like plant closures and possible low tyre sales, tyre makers like JK Tyre seem undeterred. Announcing recently a spend of Rs.200 crore in FY2021-22
Michelin India head Mohan Kumar succumbed to Covid-19.
towards plant maintenance and debottlenecking, the leading tyre maker reported a fourfold increase in standalone net profit at Rs.194.96 crore in the last quarter of FY2020-21. Keeping tab of the increasing raw material prices that has already brought to it the prospect of pushing the prices of tyres up, the company is revisiting its strategies to ensure efficiency as well as the wellbeing of its employees. Drawing attention to increasing raw material costs pushing cost inflation pressure up, sources explain that JK Tyre is keeping a close watch on market as well as supplychain side changes. They add that cost inflation pressure is expected to continue for at least the first quarter of FY2021-22. Looking at calibrated price hikes, premiumisation of products, operating leverage gains and capacity debottlenecking, JK Tyre, with 12 manufacturing facilities and 32 million tyre capacity, is stressing on sustainability and operational efficiency. The possible closure of synthetic rubber and tyre plants in the country hinting at a pandemic-
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Tyre Talk
induced disruption even though of short term nature, the tyre industry in India is treading a cautious path. It is especially paying attention to the safety and well-being of their employees in such trying times. Losing their executives and workers to the pandemic – Michelin India head Mohan Kumar succumbed to Covid-19, the Indian tyre industry is coming to terms with a new normal that is touching almost every aspect of its functioning. With the Government imposing import curbs, a big change in the happening is the loss of traction by ‘imported’ tyre brands like Falken and Hankook. Uneconomical for overseas tyre
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brands to operate in India after the roll-out of the import curbs, companies like Falken Tyres (Japan) have announced post reduction in their operations and tyre varieties or brands. Falken Tyres, in particular, has announced that it will operate henceforth in only four cities in India - Delhi, Ahmedabad, Ludhiana and Jalandhar.
The contract manufacturing arrangement of Falken Tyres with Apollo Tyres in India not fructifying, the company is said to be examining its India strategy in the wake of the new development. With the import of vehicle tyres moved into the restricted category in June last year to prevent dumping of cheap imports, mainly from China, by the Government, South Korea’s Hankook is claimed to have already wound down its own dealer network in India. Mention sources, that some USD 274 million worth of car, commercial vehicle and two-wheeler tyres were imported in FY201920. They cite data from the Department of Commerce.
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Technology
Ultra-low emission two-stroke is the future An ultra-low emission two-stroke engine could prove that an IC engine is not exiting the scene in a hurry. Bhushan Mhapralkar
I
ts just another day in the Texas countryside. A nondescript Peter 579 Class-eight truck is cruising down the highway without arousing much suspicion. It is fitted with an opposed piston two-stroke ultra low emission engine that could well mean that the IC engine is not over yet. At a time when heavy-duty internal combustion is frequently castigated in the
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shadow of zero-emission all-electric and fuelcell powertrains, a leading non-profit clean transportation group is lavishing praise on an oil burner that has shown the ability to meet the nation’s toughest emissions standards six years ahead of schedule. South Californiabased CALSTART with locations in Colorado, Florida, Michigan and New York, has developed a
Technology
10.6-litre opposed piston twostroke engine from Achates Power for the cause. Hitting the road in a Walmart fleet truck, the engine is nothing short of a mechanical miracle. The UltraLow NOx Heavy-Duty Truck Demonstrator programme that this truck is a part of, is by the California Climate Investments. CALSTART is managing the project. Its work involves collecting and analyzing emissions and performance data in the Peterbilt 579 equipped with an innovative and cost-minded two-stroke that’s designed to replace 13and 15-litre four-stoke diesels that may prove too pricey for some fleets to upgrade to meet 2027 emissions standards. Results from dynos in San Diego and Detroit, along with a test mule 579 in Denton, Texas, have been highly encouraging. They point at a new lease of life for an internal combustion engine that is much cleaner; much cleaner for use in fleets consider, and more sustainable as a powertrain. During a recent online presentation
focusing on the Achates 10.6-litre opposed piston two-stroke engine and its upcoming demo programme scheduled to take place in Southern California from July through September, CALSTART Executive Vice President Bill Van Amburg termed the engine as ‘the cleanest combustion, lowest carbon combustion engine in the world’. Though the tall 10.6-litre IC engine can achieve the California Air Resource’s Board ultra-low NOx standard of 0.02 grams per brake horsepower per hour and meet EPA’s 2027 CO2 requirement, Amburg pointed out that it was still viewed as a bridge to zero emissions. CALSTART is aiming at zero emissions and zero carbon, which is a long pathway. To get there, it is well-aware of needing all the tools in the tool chest. For the start, the heavy-duty opposed piston two-stroke engine on the Peterbilt 579 is showing much promise. Performing better than many thought it would, the
engine, according to Achates Chief Technical Officer Fabien Redon, has scope for further reducing emissions. A leaner burning attribute inherent with engine design makes it ideal for gaseous fuel use such as renewable natural gas and hydrogen, he informed. An engine burning hydrogen without any after-treatment system requirement and without any actual emissions coming out of the tailpipe could truly define the future in regards to this powertrain it looks like. An interesting aspect of such an internal combustion engine burning hydrogen, according to Redon, is that it does not require a very high purity of hydrogen. Opening the doors for a low cost hydrogen use thus, this engine, it looks like, is set to open up very many new possibilities. Like the 10.6-litre engine on the Peterbilt 576, there’s a smaller 2.7-litre engine too that is also being subjected to evaluation. It is a candidate for gasoline compression ignition. With the demand for higher vehicle fuel
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Technology
46
Bill Van Amburg, Executive Vice President, CALSTART.
Fabien Redon, Chief Technical Officer, Achates Power.
efficiency around the globe rising, the 10.6-litre opposed piston two-stroke IC engine is showing good promise. It is holding up well in the wake of growing efforts at electrification. Given the projections of IC engines going out of use, particularly for lower octane gas configurations, the new powertrain tech makes for a promising future. Especially in view of the fact that higher compression ratio engines are considered to be more fuel efficient albeit with the use of higher octane fuel. Said Achates Executive Vice President of Business Development Larry Fromm, “The ability to buy a low octane gasoline and get a huge cost savings.” While it is being projected that the ability to buy a low octane gasoline and incur huge cost savings is highly desirable and cost effective, the ability of the new opposed piston two-stroke IC engine to meet many complex requirements is looked at with much appreciation. As the thinking gathers pace regarding the future of carbon and how
it is constrained, the new engine tech could prove to be the beginning of a new era. Against the thought that a full range of fuels and technologies will be needed to meet the climate change challenge, the new engine powertrain could well be the new beginning for IC engine technology. It is innovative and delivers important benefits in a smaller package, according to Fromm. Expressed an industry expert, that the Achates 10.6-litre diesel engine will go a long way in proving those wrong who questioned the future of IC engine. With some unconventional thinking, there’s plenty of innovation, efficiency gains and even lower emissions to be achieved in the case of an IC engine, he added. Relegated to a distant backseat as emissions regulations tightened through the years and made the engines appear seemingly out of reach of any clean tech advancements, the Achates opposed piston twostroke motor stands to draw inspiration from one of the
Commercial Vehicle June 2021 // www.commercialvehicle.in
longest flights powered by internal combustion engine – an opposed piston, twostroke diesel unit. It was late James Lemke, physicist and internal combustion innovator, who thought the technology deserved another look and began R&D efforts with the support of late Walmart heir John Walton, who founded Achates Power in 2004. Seventeen years later, their dream seems to come true in the form of the motor powering the Peterbilt 579. The steady performance gains of the technology have not left many unimpressed, avers Fromm. He draws attention to the partnership inked with Saudi Aramco’s U.S.-based subsidiary Aramco Services Company in 2018 for the development of a series of opposed piston engines. One Achates 10.6-litre engine is being tested on an Aramco dyno in Detroit while another resides on an Achates’ dyno in San Diego. A Peterbilt 579 in Denton, Texas, has also served as a tester for a phase one 10.6-litre. Another 579 is set to roll-out in July for Walmart with an improved phase two engine. The more recent results, which account for a seven-per cent reduction in CO2 and a 96 per cent reduction in NOx are highly encouraging. They are from the phase two engine with an upgraded air system. The phase two engine has air system improvements in the form of a SuperTurbo turbocharger and an Eaton EGR pump. Friction improvements are courtesy of Tenneco DuroGlide compression rings, Oerlikon Metco spray bore coating and 0W20 viscosity
Technology The opposed piston two-stroke compression ignition engine employs two pistons that share a common combustion chamber, a turbocharger and a supercharger.
oil. Rated at 1674 lb. ft. of torque with room to grow, the second phase opposed piston two stroke 10.6-litre engine on the Walmart Peterbilt 579 develops 400 hp. Further improvement could elevate the horsepower even further. In terms of fuel efficiency, this engine is claimed to be seven-per cent better. Bolted to a conventional underfloor aftertreatment system with SCR, the engine, typical of a two-stroke IC engine is devoid
of any valvetrain mechanism. It is less complex and incurs less raw material and production costs. Expected to cost about USD 10,000 less at the 2027 emissions level when compared to the solutions that the four-stroke engine will need to deploy to achieve that performance, according to Redon, the new opposedpiston IC engine has the big advantage of being less complex. With cost having a direct relation with complexity
in the case of existing IC four-stroke engines that will transition to the new emission level, the new opposed piston two stroke engine is taking Achates Power, places. The company has teamed up with Cummins to produce and test a 14.3-litre tank engine. It is currently seeking additional partners to bring the 10.6-litre to production. The engine is expected to hit the market in time for the 2027 emissions regulations in the USA.
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international
Dongfeng KX The Donfeng KX is engineered to address the growing requirement for uptime, and fast and reliable just-in-time operations. Team CV
C
hina’s commercial vehicle industry has been fast growing. It is quickly coming to turn out world-class trucks that are supporting the ambitions of its manuacturers to enter new export markets and carve out a biiger share of the markets that they are already into. China’s second biggest truck manufacturer in 2020 as per the production volume, Dongfeng introduced the KX early last year for heavy duty long-haulage transportation.
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Designed for the global market, the KX has been well-received. It is one of the four heavyduty truck models – Tianlong KX, Tianlong KL, Tianjin KR, and Dongfeng Tianlong KC, the company launched in April 2020 to be precise. Coming to account for a good number of the 78,000 units the company sold in April 2021 amid a growth rebound, the KX is engineered to address the growing requirement for uptime, and fast and reliable just-in-time operations.
First shown at IAA 2014, the KX firmly underscored the company’s ambition to penetrate the European market. The Eastern European markets if not the Euro 6 Western European markets. A flagship offering of the company this truck has been ever since its launch. Flaunting global design cues, the flagship truck’s cab is a highli reinforced design. It meets the latest European safety standards – the European ECE and the most demanding Swedish VVFS
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safety regulations. It provides strong protection for both driver and passenger. The high-roof double-sleeper cab has an all welded steel-top. Laced with a number of passive safety systems, the cab is electrically tiltable. It has adjustable driver seat, airbag, auto air conditioning, electric heated rear-view mirror, electrically adjustable headlamps, front window wiper and washer, power-operated windows, airbag, external sun visor, and central locking. Its engine is new and produces 480 hp @ 1900 rpm. With a displacement capacity of 13-litres, the engine, a Dongfeng Cummins unit, is an in-line six-cylinder common-rail diesel design that offers 2320 Nm of peak torque at 1000-1300 rpm. It could be had in Euro 5 emission standards with an SCR system attached. The 6x4 tractor head with a GCW of 49-tonne (there’s a 4x2 model on offer too among other configurations) is equipped with ZF12AS2540 transmission. The 14-speed unit has short-stroke synchronizers for smooth and convenient driving. The rear axle of the truck is of the single reduction, tandem variety. Aided by bogie suspension, the rear tandem axle has a differential lock, and an inter-wheel differential lock. Laced with an active safety system that includes lane departure warning and front
collision warning, the KX has been engineered to ensure not just safety and modern technologies but also comfort. If the spacious cockpit for drivers ensures a comfortable working environment, the auto air-conditioning system aong with the wider bunk bed makes for a cosy feel to ensure the driver rests well. Subject to leveraging European trucking trends, including light weighting, the Dongfeng KX is fitted with speed-limiting devices and auxiliary braking devices for extra protection as well. Made with reliability as the foreword, the KX is claimed to highlight quality, design, and was subjected to comprehensive simulation testing, accelerated durability testing, harsh environment testing and user environment testing. Said to draw from the strategic alliance with Volvo, which was inked in 2015, the KX is claimed to have been designed and developed to support efficient, fast and clean logistics solutions. With a focus on driver comfort and safety, the truck flaunts air suspension, disc brakes, EBS, ESC, engine braking, retarder, and a GSP compatible Beidou navigation satellite system. An AMT transmission is optional for those who are looking for stricter uptime and efficiency requirements. Commercial Vehicle www.commercialvehicle.in // June 2021
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MAN Steyr
Image courtesy: Christoph Waghubinger (Lewenstein)
With majority of MAN employees at Steyr, Austria, voting against the plant takeover by WSA, the risk of closure and with it the loss of thousands of jobs has got bigger. Bhushan Mhapralkar & Milan Olsansky
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AN has announced that a majority of employees at its Steyr manufacturing site in Austria voted against plans by WSA Beteiligungs GmbH to continue operations, in-turn compelling it to start
plans to close it post an effort to to once again renegotiate the social plan. With a long history of manufacture associated, the Steyr plant of MAN produces cabs for special vehicles and crew cabs for MAN’s production network. The plant acquired by MAN in 1990 from Steyr, which built traditional ‘bonneted’ trucks in post WWII period, including the distinctive cab over Steyr 90 Series that was introduced in 1968, and the 91 and 92 Series that followed, has a long and proud history attached to it. With currently only one commercial vehicle topic in Austria making headlines in all the major daily newspapers – the planned sale or the closure of the MAN site in Steyr – it should not take much time to understand the situation. Founded in 1864 as Josef und Franz Werndl and Company to manufacture rifles, and in 1894 to produce bicycles, the MAN site at Steyr where the first truck under ‘Steyr’ brand was produced in 1919 is currently known to contribute to the building of MAN TGX, voted as the International Truck of the
Year 2021. With WSA Beteiligungs GmbH said to belong to investor Siegfried Wolf’s, exMagna boss and the current chairman of the supervisory board of Russian Machines, there is more than meets the eye, claim sources. They mention that Wolf is by no means the only interested party. A consortium around KeKelit owner Karl Egger also has a plan for the continuation with the idea of creating a ‘Green Mobility Center’. In addition, the owners of the Tatra Group have shown great interest. Something, which is understood when one looks back at the rich history that saw Hans Ledwinka, now remembered as one of the great automobile engineers of the twentieth century, and Ferdinand Porsche, being associated. Though Dr. Martin Rabe, Chief Human Resources Officer and Labor Director at MAN Truck & Bus, in the statement released by his company has expressed that the plans presented together with WSA to save the site would have offered many
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employees and apprentices a future perspective at the site, doubts are being cast about the motive of the MAN top management in Munich. The situation, inform sources, is being portrayed such that it is either Wolf or closure. Beginning to make automobiles post 1918, Steyr changed its name to SteyrWerke AG in 1926. In 1934, it merged with Austro-DaimlerPuch to form Steyr-DaimlerPuch AG. Building diesel engined trucks and buses, small and heavy tractors and also passenger car (the Fiat 1100 and 1400) after WWII, the company in 1987, began selling portions of its different production lines to form separate companies. This included Steyr Nutzfahrzeuge AG (“Steyr Commercial Vehicles”, SNF; still based in Steyr) for truck manufacturing; Steyr Bus GmbH (in Vienna) for bus manufacturing; SteyrDaimler-Puch Fahrzeugtechnik AG (SFT) and the Eurostar JV in Graz-Liebenau for assembly of automobiles and, in 1990, Steyr Tractor (Steyr Landmaschinentechnik AG). With Some MAN trucks still available with ‘Steyr’
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branding for the Austrian market, a voice is rising about all parties involved to return to the negotiating table. The President of the Federation of Industrialists, Georg Knill, is known to express that there is a need for a clever and, above all, economically sustainable solution. He is also aver that the plant is of overriding economic and social importance for the entire region. Of the opinion that an opportunity through further discussions should be
definitely used to save the Steyr location from closing down, Knill, cite sources, is keen to see that the current discussion is guided by objectivity and not by shortsighted emotions or actionism. Highlighting that fact that international competitiveness is highly important, the developments at Steyr also indicate that a clever industrial policy must in place to create appropriate conditions and incentives for international groups of companies to invest and generate employment. Drawing attention to Knill’s expression that instead of talking about nationalization fantasies, the relief of the tax and contribution rate including ancillary wage costs, and – how we can achieve an internationally acceptable level here - should be the priority issue, an industry source said that the MAN site should be saved from closing down as it would take thousands of jobs with it. He further pointed at the latest study by University Professor Dr. Friedrich
International Schneider, economist at the Johannes Keppler University, Linz, and scientific director of the Upper Austria Business Location Initiative, which puts into perspective the economic consequences of a possible closure of the MAN plant with an econometrically estimated simulation model for Austria. Taking into account the first and second round effects and depicting Austria’s economy in a comprehensive way, the study by Dr. Schneider is claimed to highlight that a domestic effective added value of Euro 737 million would cease to exist should the plant close down. It would lead in Austria to a decline in GDP of Euro 957 million and a loss of 8,400 jobs, including those at the MAN plant. Stating that the closure of MAN Steyr plant will signal the death of a part of Austria’s rich industrial heritage associating automobiles – commercial vehicles in particular, the industry source mentioned that it will also see one of the last manufacturing (industrial) companies in
the region and the country disappear. With ninety-four percent of the factory’s 2,356 workers taking part in the voting process, 1,415 workers (64 per cent) voted against the sale. Twentyseven votes were invalid, and 773 voted in favour. Those who voted in favour are claimed to do so by being irritated and fearing the loss of their jobs. There hopes to continue working in a new company may be short lived, claimed the source. He said that there is no guarantee that the new management will retain old employees and how many of them.
After a decade and a half long stint in India, MAN decided to exit in 2018. It was announced to be a part of a new strategy to globally focus on the premium segment.
Creating Traton AG as a commercial vehicle subsidiary, which has reported a rise in preliminary sales revenue by 15 per cent on the prior-year period at Euro 6.5 billion, the Volkswagen Group announced a broader restructuring in 2020. With its after-sales service network said to be running apart from the R&D center, MAN’s exit from India is claimed to be on its inability to gain much market share and make money. The Pithampur, Indore, manufacturing plant of the company has been sold to be its erstwhile JV partner Force Motors, sources mention. The medium and heavy trucks made by MAN in India were sold in domestic market as well as exported to the Far East Asian markets, African markets and some others. Commercial Vehicle www.commercialvehicle.in // June 2021
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CNH FAW talks end
After the end of talks between CNH and FAW for Iveco sale, the spotlight is on Iveco’s various endeavours as the smallest CV maker in Europe. Team CV
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fter the Italian Government signaled that it would oppose the deal, CNH Industrial NV has ended talks to sell its Iveco SpA truck and bus unit to China’s FAW Group Co. Meanwhile, a person familiar with the discussions has revealed that CNH abandoned the talks because the Chinese automotive group didn’t present an acceptable offer for Iveco on the condition that his identity is not divulged. With the deal failing between Iveco and FAW Jiefang, shares of CNH Industrial dropped by a little five-per cent. Said to have been born out of CNH’s 2019 plan to split the industrial equipment and automotive group in two, as talks of a possible sale progressed, FAW is claimed to put the value of the business at Euro 3.5 billion. Listing its lower-margin truck and bus business along with its FPT engine division in an effort to boost asset values and streamline its businesses, CNH, post the failure of sales negotiation is now said to
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chalking out plans to accelerate the deployment of ever-more sustainable transport solutions and infrastructure in-line with the European Union’s ‘Green Deal’ ambitions. Highlighting the need to protect European manufacturing, the French finance minister Bruno Le Maire is known to have welcomed the decision of CNH to end talks with FAW. The development following a revelation by Italian prime minister Mario Draghi that his government recently blocked a Chinese takeover of an Italian semiconductor company, is being welcomed by the Italian public too claim sources. Information has emerged that the Turin-based CNH, controlled by Exor, the holding company of Italy’s Agnelli family, was discussing on-and-off for two years with the Chinese company for Iveco sale. The failure of talks with FAW Jiefang has put Italy’s well-regarded truck and bus brand that Iveco is, under the spotlight once again regarding how it charts the course ahead. Said to the smallest
among Europe’s traditional truckmakers and competitors like Volkswagen, Daimler and Volvo Group, Iveco, affected by the pandemic, announced a few days before the end of talks with FAW became public, that it has entered into a letter of intent for establishing a business structure for transporting hydrogen via pipeline network from production sources to hydrogen fueling stations in support of Fuel-Cell Electric Vehicles (FCEVs) with OGE. The association, intends to further define and formalise the roles and responsibilities of the parties involved. It also intends to further define collaboration governance of the parties involved such that the objectives are successfully met. Keen to pioneer the manufacture of alternate vehicles, Iveco joined hands with Nikola last year to tap the emerging hydrogen CV market in Europe. It did so amid Hyundai’s aggressive plans and endeavours to push hydrogen trucks into European fleets. Several dozen Hyundai Xcient trucks are already said to be running in real traffic in Europe. In April 2021, Iveco also announced an association with Plus, a leading global autonomous trucking company, to jointly develop autonomous trucks. In February, it signed an agreement to supply 100 S-Way LNG trucks to Italy-based Gruber Logistics. The delivery of the vehicles is scheduled to be completed by the end of the year.
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Plug-in hybrid van Quantron The electric Q-Light van from Quantron AG is now also available as a plug-in hybrid.
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racing its roots to 1882 in Germany as a manufacturer of horse-drawn carriage, Quantron AG was founded in 2019 to paving the way for e-mobility in inner-city and regional passenger and freight transport. The basis for this would be the commercial vehicle experience of Haller GmbH & Co. KG. Driven by the belief that the importance of diesel drives will steadily decrease. in order to achieve future climate and CO2 targets, the company has announced the introduction of a plugin hybrid van Q-Light. As a
Team CV variant of the Q-Light electric van, the plug-in hybrid variant offers high driving range and drive power of a combustion engine with the possibility of covering distances flexibly in emission-free electric mode. In green environmental zones to be precise. The purely electric range of the vehicle is up to 70 km at a top speed of 80 kmph, making the Q-Light Hybrid panel van ideal for sustainable transport services in daily urban traffic. The environmentally friendly vehicle also claimed to tackle gradients and display strong acceleration under heavy
load with ease. Depending on the size, the battery is fully charged within just 3.5 to five hours. Additional energy can also be generated while driving via the electric motor, which significantly extends the vehicle’s electric range. Based on Iveco Daily, the Q-Light plug-in hybrid panel van is near silent in its operation in the emission-free electric mode. This makes it particularly pleasant for residents and employees in and around the vehicle. Coming from a commercial vehicle conversion company, the Q-Light plug-in hybrid panel
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van, by the virtue of its ability to operate silently and sans any emission, can be used in urban logistics processes during the day and night. Deliveries can also be made outside peak traffic hours, which would help to equalise traffic and reduce peak time congestion. Based on Iveco Daily, the Q-light plugin hybrid panel van is available in various sizes between 3.5 and seven-tonne GVW. Offered by a company that is said to be working on fuel cell transporter vans in association with AE Driven Solutions (AEDS), the
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Q-Light offers a payload of up to 3,400 kg depending on the version chosen. Available in both manual and HiMatic automatic transmissions, the Q-Light plug-in hybrid panel van is supported by years of experience of Quantron, which presents not just new e-vehicles but also undertakes the conversion of used and existing vehicles. The work of Quantron is made interesting by the fact that the German Federal Ministry of Transport and Digital Infrastructure has announced that it will support such electrification of vehicles with a grant of up to 80 per cent of the costs from July 2021. Planning to offer a panel van and flatbed in the case of the fuel-cell powered van, Quantron has announced that the vehicle will have an output of 100 kW for a 4.2-tonner and 147 kW for
a 7.2 tonner. The range would depend on the customer’s chosen tank size and is to be between 300 and 500 km. The price for the model named Q-LIH2 yet to be announced, and the launch date yet to be revealed, the fuel-cell van should cost more than the plug-in hybrid van and pureelectric van on offer, which costs Euro 36,500 and above. The pure-electric van from the conversion company costs Euro 68,500 and above. Focusing on retrofitting existing models that will lead to further CO2 savings, as existing resources can be used, Quantron AG is keen to ensure that battery-electric and fuel cell drive systems complement each other as far as commercial vehicles are concerned. AEDS, a spin-off of the RWTH Aachen University, is helping Quantron, which recently announced a 44-tonne fuel-cell truck with a range of 700 km and is scheduled to go into production from end of 2022, to develop hydrogen fuelcell technology for commercial vehicle production.
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Falkatus The ‘Falkatus’ made on the Kamaz 4911 competition special two-axle chassis is used as a Russian infantry fighting vehicle.
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etter known as ‘Karatel’, the Russian infantry fighting vehicle ‘Falkatus’ was developed for the FSB CSN. Built on the Kamaz 4911 competition special chassis, the vehicle has been developed by Moscow-based ZAO ‘Fort-
Bhushan Mhapralkar Tekhnologiya’ for the Russian Defense Ministry. With few different pilot models of ‘Falkatus’ made on the Kamaz 4911 competition special twoaxle chassis, the interesting part about the vehicle is how the experience and excellent results of the Dakar specials
with which the members of the Kamaz Master Team have been declassifying the world competition in all the races in which they participate for more than a decade was leveraged. In fact, the slight difference between ‘Karatel’ and the ‘Falkatus’ is claimed to be a decade worth of development where the former was an early project on ZIL chassis and never built with armour whereas the later is armoured. Used by FSB for anti-terrorist operations, the full combat weight of ‘Falkatus’ is 12 tonnes. With room for some confusion where a majority of people would confuse the ‘Falkatus’ for ‘Karatel’, the Russian infantry fighting vehicle is named after arced Celtic sword or the modern
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international shark’s ancestor, which used to live 320 million years ago. Not a beautiful vehicle to look at from either angle, it is quite capable however. A look at the specifications of the Kamaz 4911 competition special chassis and it is clear. Following the debut of mass produced 4310 4 WD at the ‘Jelcz’ rally in Poland in September 1998 by the Kamaz team from Naberezhnye Chelny, the 4911 arrived quite some time later. A natural progression of a close cooperation with the manufacturer’s engineers and testers that resulted in the Kamaz 49205 and Kamaz 49251 as the first truly modified sports trucks based on the most successful vehicles produced by Kamsk automotive plant, the 4911 was born out of much experience and knowledge. It was a result of experimentation with vehicles that sometimes exceed all imagination and was quite bold. Exhibiting strong sporting features, the Kamaz team in 1994 drove a vehicle that was far different from the mass produced ones. It was termed as the Kamaz 49252, and had an engine with power rating of 750 hp. The vehicle had a mid-engine layout and thick 25-inch dia. tyres. It utilised a bevel edged platform of the all-terrain vehicle, used to lower aerodynamic resistance. Winning the tiring ParisMoscow-Beijing rally, the truck laid the foundation stone for an even more successful next generation model that won the 1996 Paris-Dakar rally a few months later. This truck – the Kamaz 49255, was powered by a 12-cylinder, 1050 hp engine. Such was the power throw of this engine that it ruptured the transmission in
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1998 Dakar rally. The 2002 FIA ban on mid-engine configuration put laid to the best plans that the Kamaz rally team had. They went back to the drawing board. In a short time, they came out with the Kamaz 49256 with a 850 hp engine. This truck proved to be a bit painful to develop, but succeeded in achieving what it supposed to. It, in fact, paved the way for the Kamaz 4911 ‘Extreme’. A string contender with its excellent transverse performance, maneuverability and dynamics, the 4911 used the classic rectangular platform in-line with the demand of Dakar Rally organisers that the rallying vehicles should be modified out of mass produced ones. In case of trucks, it would be mass produced trucks that carry cargo! Nicknamed the ‘flying truck’ due to its unique technical and usage qualities, the 4911 floated off the ground at high speeds. It crossed over natural trampolines ‘flying’. Accelerating to 100 kmph from standstill in just ten seconds, the 4911, in order to keep its weight down, employed a thinner yet stronger frame. The frame used additional inserts. The extra-long leafsprings (1900 mm) and modern hydraulic shock absorbers ensures smooth and seemingly comfortable travel. Aiding handling and control too, the 4911, on the basis of its suspension and robust chassis, could jump off heights and land on its tyres, without damage to the vehicle or the crew. Taking gold and bronze in Dakar-Telefonica Rally of 2003, the 4911 ‘Extreme’ out ran the competition by over an hour.
Commercial Vehicle June 2021 // www.commercialvehicle.in
Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India