The wide range of Eicher Mining Trucks are well equipped to capitalize, the growth potential in the mining industry - SIDDHARTH KIRTANE, Head – Sales & Marketing, Value Trucks – Mining Business, VE Commercial Vehicles
Eicher today has the widest range of HD trucks to deliver a superior value and suit the needs for all application segments of customers, says SIDDHARTH KIRTANE, Head – Sales & Marketing, Value Trucks – Mining Business, VE Commercial Vehicles, in an interaction with EPC World
How do you see this renewed vigor, through policy reforms and increased budgetary allocation, affecting and aiding the mining sector in the next decade?
There has been many positive outcome from 2017-18 from the union budget for the mining sector, a record allocation of Rs. 3.96 lakh crore to infrastructure sector with increased outlay in infrastructure spending, leading to higher metal demand. Positive for all metal producing companies, according to market experts, rise in allocation to infra space will help cement and steel sector in coming years. Steel sector expected to gain with focus on housing, rural economy, infrastructure spending and railway and defense capex expected to boost economic growth and revive domestic steel demand. Overall budget or fund allocation is going to have positive impact on the mining sector in the next decade
What are the segments that have the potential to transform the future of the Commercial Vehicle (CV) industry?
The mid-market or value truck is expected to be fastest growing category in HD commercial vehicles in India. Value trucks are centered on powertrain upgrades, safety, cab features, and telematics solutions. Larger engines (7-9 liters), fuel efficiency, increased safety & comfort, and telematics are key features of these trucks. The three key drivers for this change are demand for truck productivity and fuel efficiency, increase in consolidation in transport sector, regulations on safety and emissions. Lifecycle cost is gradually becoming a bigger deciding factor in fleet purchase decisions than upfront cost, establishing total cost of ownership (TCO) as a major purchase influencer. With rapid economic growth, state investment in enhancing road infrastructure is creating the necessary environment for fleets to move toward higher displacement and power, fuel-efficient engines. In addition, increasing project volumes in infrastructure and mining sectors is driving a shift to greater productivity and efficiency. The sale of value trucks is expected to grow largely at the expense of the low-cost multi-axle truck market.
How do you foresee the growth of the CV industry in the next decade?
The Indian commercial vehicle market expected to double in next five-seven years thanks to the increase in infrastructure spend, rapid urbanization and entry of major multinational players in the country. Global majors will redefine brand position in the market while domestic companies will build R&D competence and optimize costs through outsourcing and modularization. The key stake holders, suppliers will improve local capacity and invest in R&D while improving operational efficiency and developing an aftermarket proposition. The companies will tackle manpower, economic and supply chain risks through skill development, production localization and supplier collaboration. The competition among commercial vehicle manufacturers in India is expected to intensify as international OEMs raise the bar in terms of technology, quality, durability and reliability; while domestic OEMs invest to upgrade products and technology, strengthen dealer relationships and loyalty, reinforce distribution networks and build new competencies to defend their market shares.
What will be the trends and technology moving CV industry in the coming decade?
Emission, Safety, Advance diagnostic tool, Transport efficiency and Driver shortage will be key focus areas that will drive trend and technology in CV industry. In last few years we have seen many new regulation getting implemented in India starting with speed governor, anti-locking braking system to introduction of BS IV emission. In the coming decade we will see host of new technology coming to CV industry related to Power Train, Driveline, suspension, super structure, Electronics to connect services addressing various areas related to Environment, Safety, Urbanization, Driver shortage, etc. With GST getting implemented and expected to boost overall transport efficiency expected to go; we will see real benefit of hub & spoke concept where demand for Multi-axle Trucks for carrying heavy loads to Small CV demand connecting last mile. E-commerce & Truck aggregators will drive demand for connected trucks. Environment along with Non-renewable fuels will drive demand for newer technology in terms of alternate Power train, LNG Fuel option to driveline.
What will be Eicher’s Commercial vehicle contribution to the infrastructure sector down the decade?
Infrastructure sector includes power, bridges, dams, roads, rail and urban infrastructure development. The state has planned Rs.31 trillion (US$ 454.83 billion) to be spent on infrastructure development over the next five years, with 70 per cent of funds needed for power, roads and urban infrastructure segments. For the industry, the outlook is positive given the pace of execution of infra projects are improving. Eicher has been increasing its participation in the infrastructure sector - upstream applications such as mining/quarrying of limestone, coal, iron ore, sand, stone etc. represent almost 70% of Eicher’s sales in mining. Eicher trucks have significantly increased presence in construction applications of road construction, irrigation, building construction, railway etc. Eicher Live, with unique features for tracking fuel efficiency and productivity, is the CV industry’s leading telematics solution; equipping customers with data and analytics services for maximizing profitability. Eicher intends to continue to improve market share in this sector with a strong product portfolio of recently launched Pro5000 series and proven Pro6000 and Pro8000 series trucks focused on higher productivity, fuel efficiency, and safety and driver efficiency.
@EPC World Media Group