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Special Supplement to Truck & Bus Builder on Commercial Vehicle Developments in India

INDIASPECIAL SUPPLEMENT 39 DECEMbEr 2016

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Dear Reader,The outlook for India has never been better it

seems as prime minister, Narendra Modi, wins support for radical reform, including the recent decision to make 500 and 1,000 rupee notes illegal tender as part of the government’s strategy to reduce the black economy and move towards a cashless society.

In general, there seems to be a general view that the commercial vehicle industry in India, under Modi’s leadership, is on course for steady growth during the next five years – see report on Frost & Sullivan presentation pages 4 and 6. While during the second fiscal quarter (July to September) the CV sector experienced a short pause in growth – both the M&HCV truck and trailer segments declined 15% and 16% respectively, reflecting the regulatory enforcement of the trailer code and introduction of ABS in trucks and trailers - the outlook looks strong. Customers were perhaps deferring purchases until later in the year in expectation of further discounts by OEMs at the year’s end and ahead of BS IV norms in April.

Buses on the other hand exhibited modest growth of 7% in the MCV and 3.71% in the LCV segments, respectively. This was driven mainly by pent up replacement demand and uncertainty over increased prices of future vehicles that will need to comply with new regulatory norms such as the bus body code, ABS, as well as new BS IV emission controls from April.

Rajesh KhannaCOO, RACE Innovations

Jim GibbinsEditor, Truck & Bus Builder

Acquisition / Restructure

Chennai / Japan – One of India’s largest commercial vehicle manufacturers, Ashok Leyland Ltd of Chennai, India has signed a restructuring agreement with its existing joint venture partner for light commercial vehicles and components, Nissan Motor Company of Tokyo, Japan, whereby Nissan is to relinquish its entire interest in the three joint venture companies.

The agreement, which was signed on September 7, 2016, is to see Nissan sell its entire stake in the three joint venture companies to Ashok Leyland; this would see the companies become wholly-owned subsidiaries of Ashok Leyland. Ashok Leyland said the transaction would be concluded upon receipt of all necessary approvals from the regulatory authorities in India. The process is expected to be concluded later this year.

It was back in 2008 that Ashok Leyland formed the three joint venture companies with Nissan: They were, Ashok Leyland Nissan Vehicle Ltd for light commercial vehicle manufacturing; Nissan Ashok Leyland Power Train Ltd for powertrain

Ashok Leyland to buy JV shares from Nissanmanufacturing and Nissan Ashok Leyland Technologies Ltd for technology collaboration.

Ashok Leyland stated that it would continue to build, under a licensing agreement, the Dost and Partner light commercial vehicles, which are based on Nissan’s design, engineering and technology. Servicing and parts availability for customers is said to be ensured by a new technical support arrangement. In addition, Ashok Leyland said that the two companies have agreed to continue a deal to procure made-in-India parts to Nissan.

Philippe Guérin-Boutaud, head of Nissan global LCV said: “We are pleased to be moving forward into a new phase of our business with Ashok Leyland. Nissan is committed to India and has invested substantially in manufacturing, research and development and sales networks in the country. We are on track to becoming a major player in the Indian market. Under the licensing arrangement with Ashok Leyland, Indian commercial vehicle customers can continue to benefit from Nissan’s engineering, with servicing and parts availability.”

Legislation

New Delhi - The government of India is expected to bring into law legislation that will see commercial vehicles 12 years and older scrapped, which is expected to generate huge replacement demand for new trucks and buses in the new financial year.

The government is expected to legislate at the next parliamentary session and before the end of this year for all commercial vehicles registered before March 31, 2005 to be scrapped under the Vehicle Fleet Modernization Programme (V-VMP scheme1). As a result, it is anticipated that 18 million commercial vehicles could be scrapped in a phased manner creating huge replacement demand for trucks.

At the SIAM2 annual convention in New Delhi, Abhay Damle, joint secretary, Ministry of Road Transport and Highways (MoRTH), said: “The

New scrapping policy likely to remove 18 million vehicles and generate huge replacement demand

new vehicle scrappage policy will target heavy commercial vehicles first as they cause 65-70 per cent of the (vehicular) pollution.”

Union minister, Nithin Gadathri of MoRTH, added: “While pollution is one of the biggest concerns, the industry has been very supportive of our efforts to address this issue. We are attempting to implement a scrapping policy for old vehicles, which will help reduce pollution.”

1V-VMP: Vehicle Fleet Modernization Programme proposes to offer tax benefits and discounts to people who scrap old vehicles and replace them with new ones. It proposes to cut excise duty on new vehicles by half and subsidise the purchase of a new vehicle after scrapping the old one.

2SIAM - Society Of Indian Automobile Manufacturers.

Investment / Expansion

Bangalore / Germany - Bosch India Pvt Ltd, a wholly-owned subsidiary of Robert Bosch GmbH, Stuttgart, Germany has expanded its research and development centre in Adugopi, Bangalore. Bosch said it has invested some USD52.39m in expanding the facility, which is to focus on antilock braking systems, electronic

Bosch India expands braking and driver assistance R&D centre in Bangalore

stability program mes, driver assistance, passive/active safety systems, hardware development and other software developments for the local market. Bosch stated that this investment was the first phase in plans to create a global research facility and that it was planning to expand the complex with further investment totalling USD175m.


Pune / Mumbai / Germany - Henkel Adhesive Technologies India Pvt Ltd, headquartered in Mumbai, the Indian subsidiary of Henkel AG & CO in Düsseldorf, Germany, has inaugurated a new acoustic lab at their innovation centre in Pune.

The acoustic lab enables the company to develop components and systems to meet evolving and increasing challenges in the area of noise and vibration harshness (NVH) to international standards. The lab uses the very latest software programmes such as Computer Aided Engineering (CAE) and Finite Element Analysis (FEA) to perform measurement and virtual tests, when designing these components.

Shilip Kumar, country president, Henkel India and business director, transportation and metal SBU, Henkel IMEA, said: “Noise and vibration play a crucial role in determining the vehicle’s quality, and we have started to focus on developing vehicles with lower NVH levels. At Henkel, we put our customers at the centre of what we do and work closely with them to develop solutions to challenges faced by them. At this acoustic lab we will collaborate with our customers by solving NVH problems.”

Henkel India opens acoustic lab in Pune

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Strategy / Investment

Chennai – Thermal management components and systems specialist, BorgWarner Cooling System India Pvt Ltd, a subsidiary of BorgWarner Inc of Auburn Hills, Michigan, United States, has decided to increase the local content of its visctronic1 fans built for the Indian market to 70%. The fans are built at its Sriperumendur facility near Chennai. Operations with this increased local content, is scheduled to start during the first quarter 2017.

In October 2015, BorgWarner said it had started by supplying BharatBenz followed by other OEMs like Tata Motors, Mahindra & Mahindra, Ashok Leyland, Volvo Eicher Commercial Vehicles as well as others.

The Chennai plant is to be fourth plant of BorgWarner’s to manufacture visctronic fans after the US, China and Europe. Visctronic fans

BorgWarner to localise visctronic fan productiondrive with high speed and respond directly to the engine cooling needs, says Borgwarner; they offer increased performance, while improving fuel economy and lowering emissions.

1Visctronic variable speed fan drives use software to enable communication with the engine ECU. The software continuously monitors engine temperature, engine speed, vehicle speed and engine load and delivers signals to the engine control unit to meet the engine cooling requirements. Subsequently the cooling system responds quickly and more precisely than traditional fan drives. As a result, the engine runs more efficiently, delivers more horsepower, increases fuel efficiency and reduces the emissions. In addition, the technology features a maintenance-free design and improves driver comfort with low noise and vibration harshness.

Agreement

New Delhi / Bhutan / Bangladesh / Nepal – Following the Motor Vehicles Agreement (MVA) signed by four countries Bhutan, Bangladesh, India, Nepal (BBIN) on June 15, 2015 (abbreviated as BBIN MVA1) - which permits the seamless transport of goods and passengers between these countries - India has seen the first borderless transport trial operate successfully between Dhaka in Bangladesh and New Delhi in India via Kolkata.

The trial allowed implementation of protocols specific to border controls and to the Motor Vehicle Act amendments. As part of the agreement, the vehicles were allowed to move with temporary e-permits at the borders by customs. The trucks were electronically sealed the moment they reached the first land customs station, and then monitored until they reached the Inland Custom Depot in Patparganj, New Delhi, where a bill of entry and customs duty payment was made by the importing company.

Nitin Gadkari, Road Transport and Highways Ministry, said: “History was written at the Inland Customs Depot in Patparganj in East Delhi today, when for the first time a cargo truck from Bangladesh drove with a Delhi-bound consignment, having come seamlessly through the border customs free, and further still, paving

India gears up for borderless tradethe way for the implementation of some 30 priority road construction projects worth eight billion US dollars as part of this initiative to connect neighbouring countries.”

For trade in these countries it means considerable cost savings as Nidhi Dua, India country manager for Marks & Spencer, suggested: “We are expecting the freight cost to come down by 20% and transit time to be reduced by three days.” Costs are expected to reduce mainly due to the removal of the current practices of off-loading and re-loading freight at the borders, and the reduction in waiting time for clearance of transit goods.

1Bhutan, Bangladesh, India, Nepal (BBIN) signed a landmark Motor Vehicles Agreement (MVA) for the Regulation of Passenger, Personnel and Cargo Vehicular Traffic among the four South Asian neighbours in Thimpu, Bhutan today. The MVA agreement between the four SAARC nations, Bangladesh, Bhutan, India and Nepal (BBIN) is expected to pave the way for a seamless movement of people and goods across their borders for the benefit and integration of the region and its economic development. The BBIN MVA Agreement was signed by the Union Minister of Road Transport & Highways and Shipping Mr Nitin Gadkari on behalf of India.

Strategy / Agreement / Export

Mumbai / Bolivia - Tata Motors Ltd of Mumbai has signed an agreement with Bolivian Auto Motor1 of Santa Cruz, a local importer, for the sale of its range of CVs in Bolivia.

To date the company has launched products from its light commercial vehicle range, these include a mini and light duty truck, Tata SuperAce2 and Tata LPT 6133 and one pickup truck, Tata Xenon4 – the vehicles are being sold through three outlets in Santa Cruz, La Paz and Cochabamba.

Rudrarup Maitra, head of international business, Commercial Vehicles, Tata Motors Ltd, remarked: “We are delighted to make our presence in one of the fastest growing Latin American markets with our seasoned local partner, our experience translated into products equipped to handle varied terrains, with better load carrying capability, enhanced turnaround time offering immense value to Bolivian customers.”

1Bolivian Auto Motor (BAM) is part of the Salvatierra Group. For the last 20 years BAM has been responsible for the distribution of the LADA and JMC brands and motorcycles in Bolivia.

2Tata Super Ace is a one-tonne payload truck equipped with a 4-cylinder 1,396cc petrol engine, which delivers 85hp @ 5550-6000 rev/min through a 5-speed transmission.

3Tata LPT 613 is a 4.2t payload truck. It is fitted with a 6-cylinder engine (equipped with turbo-charger and inter-cooler) and 5-speed gearbox.

4Tata Xenon 4X2 is a pick-up truck equipped with a 2,092 cc petrol engine with multi point fuel injector that delivers 131hp @ 195NM and is matched with a 6-speed synchromesh gearbox.

Tata Motors now exporting to Bolivia


Chennai / China - KUS Auto, the abbreviated brand name for Dongguan Zhengyang Eielctronic Mechanical Co Ltd of Dongguan, Guangdong province, China, a manufacturer of liquid level sensors and AdBlue/DEF (diesel emission filters) and gauges to many transportation sectors, is setting up a new production plant in Sriperumbudur, near Chennai with operations scheduled to commence in early 2017. The plant is to be operated by its subsidiary, KUS India Pvt Ltd in Chennai.

KUS Auto set up a sales, marketing and administration office in late September 2015 in Chennai to be able to import and supply its components to various Indian OEMs including Daimler, Tata Motors, Ashok Leyland and Mahindra & Mahindra.

Steven Lee, director at KUS Auto, remarked: “We see demand for the localization of AdBlue tanks in India. We will begin manufacturing these at our upcoming production plant early next year. Our products will be for the HCV industry where we have Tata Motors, Ashok Leyland, Mahindra & Mahindra (M&M), and Daimler as our customers in India. Currently, we are supplying them with our products from our plants based in China. Localisation will help us get more aggressive in the Indian market.”

KUS Auto to set up new plant in Chennai

Investment / Manufacture

Austria - Safety seat belt manufacturing specialist for the commercial vehicle industry worldwide, Fasching Salzburg GmbH of Salzburg, Austria has announced plans to set up a production facility in India.

At Busworld India 2016 in Bangalore, Harald Pessl, sales director and authorized officer for Fasching said that Fasching had been active on the Indian market for more than six years and during that time it had been monitoring closely the rules and regulations governing safety belts in the commercial vehicle industry. Pessl said it was now time to take a step forward and set

Fasching contemplating production in Indiaup a production facility in India. This would enable the company to manufacture its safety belts to its high standards but at a more competitive price for the Indian commercial vehicle and military markets. “Our production facility should be implemented and completed by mid-2018, so allowing full production to start in the second half of 2018”, said Pessl.

Fasching aims to achieve its goals by partnering with an already identified but unnamed experienced local company and plans to form a joint venture to achieve its goals over the next 12 to 18 months.

INDIADecember 2016

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Telematics / Strategy

Mumbai - Mahindra & Mahindra Ltd (M&M Ltd) of Mumbai has launched a connected telematics diagnosis tool called DiGiSENSE, which it is rolling out initially with two small commercial vehicles, Jeeto1 and Imperio2.

Developed by Mahindra, the company says that DiGiSENSE is the first of its kind technology platform, which is multi-application and multi-product enabled. It is a smart application that will empower customers to digitally build knowledge 24 hours a day about the performance and location of their vehicles. DiGiSENSE, says Mahindra, will enable operators to access information about their vehicles remotely in real time and take to proactive steps in preventative maintenance and repair. Drivers can contact emergency breakdown services or pull up a route planner at the touch of a button, fleet owners and dealers can track the location of their vehicles in real time, while remote diagnostics and reports allow service teams to monitor the vehicle’s health and productivity parameters.

It is expected that DigiSENSE will be introduced with Mahindra medium and heavy duty commercial vehicles in the future; this, suggests Race Innovations Pvt Ltd will help support sales and aftersales of its vehicles.

Key features of DiGiSENSE applicable for Jeeto and Imperio:

Vehicle Tracking - It ensures locating the vehicle in real time, tracking the history of the vehicle travel, facilitating better planning and control of business deliveries.

Mahindra launches on-board real-time diagnosis system called DiGi SENSE

Geo Fencing - Helps to create a fence within which the vehicle operates, for safety and savings, monitors the routes followed by the drivers and alerts in case of any violation

Route Planning - This is a scientific method of route planning for the shortest and the fastest route, thereby reducing idling time in traffic zones with better route. This saves time, fuel cost and improves productivity

Remote Engine Diagnostics - Diagnoses potential problems with the engine, even remotely and reduces the turn-around time during breakdown

Vehicle Breakdown assistance - The emergency alert button immediately alerts the nearest service centre and can notify the owner, without any trouble of searching for assistance

Vehicle Usage and Delivery Reports – Snapshot summary of the vehicle usage basis distance, location, alerts, deliveries completed, breakdown etc. It also analyses potential improvements in business by changes in vehicle usage pattern

SMS & Webpage Alerts - The web/app notifications and sms alerts enable greater driver control for geo fencing, over speeding, excessive idling etc.

1Jeeto - Launched in June 2015, Jeeto is a modular range of 8 mini-trucks to cater to the varied needs of the sub 1-tonne load segment customers.

2Imperio – Imperio is Mahindra’s premium pick up. It was developed to cater to the small and medium businesses transportation needs.

Product / Technology / Manufacture

Chennai / France - Michelin India Pvt Ltd, the Chennai-based subsidiary of France’s Lyon-based tyre manufacturing company, has launched its X guard radial truck tyre range, which are manufactured in India using two patented technologies; Infinicoil1 and Regenion2 – these have been adapted to be produced in India and are offered at Indian market conditions and prices.

The X guard radial tyre is priced at USD275 a tyre, says Michelin, which, it claims, makes it more competitive than its Indian competition, while, Michelin continues, providing significantly improved benefits in terms of performance and safety.

Mohan Kumar, commercial director, Michelin India, remarked “The new Michelin X Guard is a demonstration of the commitment of the Michelin Group to bring the most advanced tyre technologies

Michelin’s new radial tyres for Indian trucksto India. The Indian market is rapidly evolving and it was important for us to adapt to the customer’s changing needs. Michelin X Guard, built exclusively for the Indian market, is a paradigm shift from the Indian consumer’s viewpoint. This product is a true reflection of the ‘more for less for more’ philosophy that combines the best of Michelin proprietary technologies to deliver a high quality product, but at an attractive market price. We expect this product to attract more customers to our brand.”

1Infinicoil technology adopts Indian context, fortifies the tyre from inside to become robust but much lighter tyre.

2Regenion technology offers the tyre to self-regenerate the tread and new grooves appear as they wear out; this improves tyre life and boosts tyre mileage significantly.

Expansion / Investment

Mumbai / Vietnam – The Tata Super Ace 1-ton payload truck has now been launched in Vietnam on behalf of Tata Motor Ltd of Mumbai, India by Tata Motor’s existing local partner, TMT Motors1. The trucks are already available in both diesel2 and petrol versions3 across seven sales points in northern Vietnam, with more outlets being added gradually through the country.

Ravindra Pisharody, CV head at Tata Motors, said: “Having officially announced our entry into Vietnam last year, we at Tata Motors are happy to announce the launch of our very first product, the Tata SuperAce mini-truck in the country today.

Tata launches Super Ace mini-truck in Vietnam

Having sold over 1.5 million mini-trucks on the Ace platform globally so far, the Tata SuperAce has been developed based on Tata Motors’ deep understanding of the CV customer, for a wide range of applications. Through our partnership with TMT Motors, we are committed to shaping the commercial vehicles industry here and are determined to build a long lasting relationship with the customers, with competitive business advantages and the trusted credentials of the Tata Motors brand.”

1TMT Motors manufactures, assembles and distributes a number of brands in Vietnam. In May 2015, TMT Motors signed an agreement to distribute Tata CVs in Vietnam.

2The Tata SuperAce Diesel has a 4-cyl, 1,405cc diesel 70hp engine and 5-speed transmission.

3The Tata Super Ace petrol model has a 4-cyl, 1,396cc 85hp petrol engine and 5-speed transmission.

Product Development

Mumbai - Tyre manufacturer, CEAT Ltd, the flagship company of RPG Enterprises1 of Mumbai, has launched a new tyre series, called Win, which is dedicated to the commercial vehicle market.

The Win series tyre, says CEAT, is designed to offer low rolling resistance targeting improved fuel efficiency, whilst using high strength rubber and steel for higher loads and increased durability. This series is an evolved version of its earlier Pro Series tyre and targets the long haul cargo truck and intercity coach segments.

1RPG Enterprises is an Indian multi-industrial company headquartered in Mumbai. It has more than 15 subsidiary companies, which are located throughout India.

Ceat launches Win series tyre for commercial vehicles


Chennai – Following its ownership separation agreement reached with its LCV joint venture partner, Nissan Motors Company in September (see separate article in this issue), Ashok Leyland Ltd of Chennai, it has announced that it will expand operations with investments totalling USD59.84m over the next three years. This, it added, would involve the launch of eight to 10 new product models, said the company, as well as updating its existing product range.

Ashok Leyland to invest $60m to expand LCV operation

Relocation

USA / India - Cooper Standard Automotive Inc of Novi, Michigan has opened its new India headquarters and technical centre in Pune, Maharashtra.

Relocated from its previous location in Sahibabad, the 6,000 sq ft facility employs approximately 40 people and designs sealing components and fuel and brake delivery products. Serving an expanding Asia Pacific customer base, Cooper Standard, including its joint venture partners, now operates 32 facilities in the Asia Pacific region, including 11 in India, 13 in China, five in Korea, two in Japan and one in Thailand.

Cooper Standard relocatesIndia HQ to Pune

Export

Chennai / Tanzania - Ashok Leyland Pvt Ltd of Chennai has received a second major order from the government of Tanzania of 777 trucks and buses, including equipment for workshops to deliver the vehicle maintenance, worth USD170m. The order, which is backed with finance support from the EXIM Bank of India under the National Export Insurance Account (NEIA) scheme, follows a very similar order previously for 733 vehicles.

Vinod K Dasari, MD for AL, said: “Export business offers strategic intent to globalize their product portfolio, de-risk their market position in India”.

AL wins order for 777 trucks and buses

INDIA


Show Report

India - The whole of India is moving to BS IV (Euro 4) in April 2017 and in just three years’ time, India is proposing to by-pass or skip adopting BS V (Euro 5) emissions regulations and move directly to BS VI (Euro 6) by April 2020, stated Chandramowli Kailasam, head of global commercial vehicles research for Frost & Sullivan in a presentation at Busworld India in Bengaluru last month. Kailasam said that the Indian government was taking huge steps towards enforcing cleaner emissions by introducing such low emission norms.

He said that the Nitin Jayram Gadkari, Minister for Road Transport and Highways and Shipping had already instructed all state transport undertakings to make their fleets, comprising some 17 lakh (1,700,000) buses, either Euro VI or bio-fuel compliant by April 1, 2020. Kailasam has also stated that Euro VI fuel would be made available in metro cities much earlier than the deadline. By adopting BS VI norms, PM and NOx emissions from trucks and buses would, he said drop by 50% and 89%, respectively from BS IV norms – the latter comes into effect across the whole of India on April 1, 2017. A concern still remains that fuel quality will be an issue for effective operation of BS VI vehicles, but Kailasam stated that oil marketing companies were in a good position now to invest the necessary Rs 25,000 to Rs 30,000 crores (USD3.65 to USD4.35bn) in refinery operations in order to produce BS VI compliant (low sulfur) fuel. One of the key stakeholders is Society of Indian Automotive Manufacturers (SIAM), which has been supporting the Indian government in moving to BS VI. This will, however, said Kailasam, have a profound and costly impact, not just on Indian manufacturers, but also on international manufacturers setting up plants in India.

Kailasam stated that that in addition to legislation there were a number of key trends driving the bus market in India, namely Smart cities, rising income levels, safety and low cost manufacturing. He said there were 100 Smart cities in India, where action plans were being undertaken to address key issues for modern city dwelling; the top three issues are adequate water supply, sanitation and electricity, while the fourth is efficient and sustainable mass mobility.

Kailasam stated that the India customer was becoming a little more sophisticated because of higher levels of disposable income and as such were becoming more open to paying for safety features as well as comfort. The average Indian bus customer has started to ask for more safety features, he stated, especially in the luxury intercity bus segment where there have been some well publicized incidents involving fires resulting in fatalities. In addition to customer expectations, new legislation to improve safety standards has and will be introduced in the coming years to improve safety standards; this started with the Bus Body (fabrication) Code and compulsory ABS1 implementation from April, 2016. The Bus Body Code has seen the bus body building industry, which accounts for more than 90% of all buses and coaches built using this method (i.e. body on chassis), become reshaped, said Kailasam. 50 to 100 bus body builders are now compliant, however, the regulation has led to a fourfold (4X) increase in fully built vehicles, he added.

In the next two to five years, Frost & Sullivan believes that there will be vast improvements in safety both active and passive, some of which will be market driven and some will result from legislation such as seat belts, airbags and video safety devices.

The government currently does not have a fully

Outlook for bus and coach market looks positive as India pushes for cleaner emissions, says Frost & Sullivan at Busworld India 2016

Subsequently, Kailasam sees OEMs investing in hybrid buses, especially for transit and inter-city applications. Kailasam added that the Indian OEMs such as Tata Motors and Ashok Leyland have already developed hybrid and electric buses. “It is just a matter of time before they will be mass producing these vehicles {hybrid and full electric}. These vehicles are undergoing tests and they are on a technology path to be in a position to produce these buses in the next couple of years.”

Over the short term (five years) all the powertrain options are expected to become available i.e. diesel, CNG, hybrid, plug-in and electric. However, diesel engines will still be the preferred option for the OEMs’ customers. He said the European OEMs’ presence was expected to rise due to the market expansion of high-end buses and coaches, especially in metro cities. Kailasam said he fully expected to see key technology Chinese companies’ move into the market, and expects BYD to lead the way in full electric buses.

The Indian bus industry like many other industries is led by the truck business with buses being a secondary business, said Kailasam. Historically, the bus chassis has always shared the same architecture as that of the truck. So, in Kailasam’s view, there remains considerable time to go before the OEMs design and build purpose-built buses. So over the next five years, there will be little change in the general bus and coach architecture, stated Kailasam. The customer experience will change due to investment in the interior design and use of technologies to improve the passenger experience such as free Wi-Fi and infotainment systems. For the operator, the OEMs are expected to compete in the aftermarket by providing benefits that are practical in terms of track and trace and in the provision of various levels of fleet management systems. F&S expects driver Smartphone usage to increase from 1.8 times in 2016 to 2.8 times by 2020. This will enable fleet operators to empower its drivers and improve its fleet management. However, he does not see the highly sophisticated safety and fleet operator solutions now available in Western Europe such as driver fatigue and alko-lock systems, video monitoring and parking systems or lane departure warning systems coming onto the market for many years yet, unless the government introduces them through legislation.

1ABS made compulsory since October 2015 in M&HCVs, above 12t gvw in trucks and above 5t gvw in buses.

Bus and coach market forecast to grow steadily over next five years

The bus and coach market has fluctuated considerably over the last few years, but over the next four to five years, it is expected to see steady growth, stated Kailasam. The year 2015/2016 saw steady growth due to the stronger economy, new bus norms that have been introduced and fleet operators looking to buy new technology buses with better fuel consumption. F&S expects the market for medium and heavy-duty bus and coach to grow from 49,400 units in 2015/16 to 56,000 in 2016-17, this increase is largely due to the pre-buying before mandatory BS IV in April 2017. As a consequence, the market will fall back the year after to 51,500 units, before regaining momentum for continuous growth over the following three years. In 2018-19, fleet expansion, vehicle scrappage incentives, and a move to vehicles offering better passenger comfort is expected to boost numbers to around 59,000 units. In the next two years, the bus and coach market is forecast to grow to 70,000 in 2019/20 and 67,500 units in 2020/21 as a result of improved road infrastructure and rising demand for more reliable products with good fuel efficiency.

Production is also expected to grow due to rising exports over the next five years.

implemented policy for transportation, stated Kailasam; instead it has one for review. This includes a proposed policy for the scrappage of old vehicles, which, if and when implemented, is expected to increase demand across all bus segments - but more so for light buses because they tend to be much older (20 years sometimes) rather than the medium and heavy duty, which tend to be much newer.

India, Kailasam continued, is becoming a big manufacturing hub for buses: “All manufacturers will become part of the ‘Make in India’ programme for export. Apart from Ashok Leyland and Tata Motors, there are other manufacturers in India, like Volvo, in the high end coach and bus segment but also now entering the volume / value segment with its UD brand. All such overseas bus producers are looking at India as a production hub for export to regions such as Asia Pacific, Africa, Latin America and the Middle East, which have similar customer needs and road conditions as in India.”

Geography 2001-2005 2005-2010 2010-2017 2017-20201 2020-20252Nation-wide India 2000 BS II BS III BS IV BS VIMetros* BS II BS III BS IV BS IV BS VIOther Major cities**

India 2000 BS II BS III BS IV BS IV BS VI

Source: Frost & Sullivan Notes: 1Nation-wide BS IV fully implemented from April 1, 2017 2India plans to skip BS V and leap frog to implement BS VI by April 2020 across India.*Metros: NCR, Mumbai, Kolkata, Chennai **Other Major Cities: Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Agra, Solapur, Lucknow.

Diesel hybrids and electric drive buses is the future for India, not CNG

At BS VI, the question, asked Kailasam, is whether the future technologies for city and interurban buses will be hybrids or natural gas. Presently most India customers look at the initial cost and not the total cost of ownership, said Kailasam. They also look at the fuel efficiency of buses.

However, this way of looking at the business model is not expected to change and as a consequence, vehicles need to be built to meet market demand. Due to the lower efficiency of natural gas engines as well as their propensity to spill more methane at Euro VI, will result in the OEMs moving towards hybrids over natural gas engines, Kailasam stated. “The OEMs must curb the methane without increasing the product price,” said Kailasam, adding that gas engines will cost 20% more than diesel hybrids! While Bharat VI requires lower sulfur content fuel for both, natural gas engines and diesel engines, natural gas engines will still require a major engineering upgrade in combustion design as well as extra after-treatment, said Kailasam. “Thus natural gas engines,” Kailasam stated, “may be optimal up to Bharat IV norms, but they are not viable for Bharat VI norms, as they will be definitely 15 to 20% higher in cost due to the upgrade technology and will consume about 8% more fuel than a similar Euro VI level compliant diesel engine.”

India M&HD Bus Market Forecast, FY2017 to FY20212016-17 (F) 2017-18 (F) 2018-19 (F) 2019-20 (F) 2020-21 (F)

Intercity 25565 25314 26899 33829 31615RP/Moffusil 12092 9870 13268 14289 14792Tourist 6413 6173 6472 6808 6142Staff 1256 1105 1543 2508 1623School 10662 9030 10667 12915 13353Total 55988 51492 58849 70349 67525

Source: Frost and Sullivan Continued on p6

December 2016

INDIA


Product / Diversification / Strategy / Export

Telangana - The MG Group of Telangana, India used Busworld India 2016 to announce its move into a new market segment with the unveiling of a 12m low floor integral airport bus.

Called Columbus, the bus it built to a monocoque design with front and rear chassis modules. The front module featured a ZF front portal axle, while the rear module included a ZF standard drive axle with ZF’s fully-automatic Ecolife transmission and Cummins 5.9-litre 230hp Euro IV engine fitted transversely.

Lalit Waankhede, consultant – vehicle integration at the MG Group, explained that the use of front and rear modules, in the event of damage, allows them to be replaced if necessary without affecting the structural integrity of the whole vehicle. The vehicle has a long wheelbase of more than six metres (6m) enabling a low floor virtually throughout the bus with a small step over the rear axle. The passenger area has been designed to offer swift entry and exit with just eight seats around the wheel arches, with five passenger doors – three on the driver’s off side consisting of a single plug door at the front, and two double doors between the wheelbase and then two more double swing-out doors opposite on the driver’s side. The interior layout permits it to accommodate up to 70 passengers (ie 8 seated and 62 standees). Use of 275/70 tyres allows a passenger entry floor height of 290mm, after kneeling. The vehicle is 2.6m wide, is equipped with deep flush panel sealed windows that offers good light and much space within the vehicle. It also has many of the very latest technologies such as ECAS (electronically controlled air suspension), ABS (anti-lock braking) and CAN bus system, which the MG Group stated, makes it fully compliant with airport handling manual regulations.

MG Group plans entry into the low floor airport bus sector

In addition it has a new driver binnacle with digital display, developed and supplied by the MG Group’s bus electronics solutions, MG Grey Engine LLP.

Anil Kamat, managing director of MG Group, said: “Over the past two decades, we at MG Group have played a significant role in the Indian bus building landscape, recognizing customer needs and introducing game-changing and innovative products and solutions for the bus and coach industry. The Columbus, currently diesel powered, is envisioned to be offered with CNG as well as electric drive lines in the short term. In India, the air passenger traffic has been increasing at approximately 20% year-on-year and hence the demand for tarmac coaches {apron transfer buses} is also increasing. The total park volume is currently 800 units, being a highly niche segment.”

The MG Group said: ‘A good tarmac coach further enhances the image of the airline. The Indian market currently demands about 50 coaches per year, which is expected to grow as aged tarmac coach fleets are also due for replacement. Leading airlines have also placed record order sizes for aircrafts, which in turn, will increase the demand for tarmac coaches. Tier-2 City Airports under focus will also boost the demand of tarmac coaches. Keeping in mind the urgent need for spacious and high technology coaches by the airline industry, the Columbus has been positioned as a revolutionizing product and a technology demonstrator. The bus is to be initially introduced for the export markets and is to use the Busworld India 2016 platform to take critical feedback from Indian customers with a goal to introduce it in the domestic market in the near future.’

Market / Product

Chandigarth – “Bus operators increasingly prefer to buy complete vehicles,” said Sukhdeep Singh, assistant manager, product marketing and administration for SML Isuzu Ltd at the show. Singh advised Truck & Bus Builder that it had seen a significant rise in demand for its complete bus products, and suggested that it is the one point of contact for maintenance, service and repairs was driving this trend. Another reason was the impact of the Bus Body Code (AIS 052) in effect in April this year with only some 100 or so bus builders now fully certified.

SML Isuzu used the show to display four vehicles, two of which are new: the Ecomax and the Executive Lx Coach. The Ecomax is short wheel-base luxury minibus for 12+1/ 13+1 seats in 2+1 layout with air conditioning, USB charging points, cup holders and magazine rack. The driveline is available with BS II or BS IV compliant 3.45-litre engine with direct injection / common rail fuel injection and rated at 101hp (75kW) and torque of 315Nm / 310Nm.

The Executive Lx Coach is a luxury 8.3m long coach offered with a choice of three seating layouts of 19+1 reclining push back seats, 28+1 semi-reclining high back seat or 30+1 variant. It has the same engine choice as the Ecomax with an output at both BSIII and IV of 101hp (75kW) output and 310Nm torque. The transmission is different 6 speed unit is used instead a 5-speed.

SML Isuzu has its truck and bus building plant in Ropar, Punjab state. In 2015/16 it achieved sales of 12,700 vehicles against 11,759 in the previous year, with around 4,000 buses and coaches being included that number. It expects to build in excess of 13,000 units this year. The plant produces its own engines, transmissions and axles and employs 150 people in R&D.

Growing demand for fully-built buses, says SML Isuzu

Strategy / Market

Pune - With ten year anniversary celebrations of MAN’s presence in India at this month’s Bauma Conexpo India 2016 in Delhi, Joerg Mommertz, chairman and managing director of MAN Trucks India Pvt Ltd of Pithampur, Pune, was upbeat about prospects and of increasing sales in India with new vehicle configurations to offer the markets: Speaking with Truck & Bus Builder at Busworld India 2016 in Bangaluru, Mommertz said that MAN India’s plan was to replace its current off-road product for the mining sector in 6x4 and 8x4 configuration to offer lighter weight products in the form of a 6x2 model with lift-able axle and an 8x2 model with lift-able axle for the haulage business. Both would be offered in tractor and rigid truck specifications – Mommertz said that there were substantial volumes in both truck configurations and this presented a good opportunity on the Indian domestic market as well as abroad.

Output (all vehicles) this year would be around 3,200 units, said Mommertz, with an equal split in sales of its CLA truck to the domestic market and for export; although in a few years’ time, his aim was to match this total output with sales of some 3,000 units to the domestic market alone.

MAN India has made much progress in recent years: Four years ago, D0836 engine production was localized and today, local content exceeds 80%. As well as the engine, it makes axles and

MAN India ready for BS IV emission regulationsthe frame; transmissions are sourced locally from either Eaton or ZF. From April 2017, new emission regulations, Bharat Stage IV come into effect and for compliance, MAN is to use SCR only after-treatment technology without EGR. Whilst initially, it plans to import the SCR dosing and after-treatment technology, MAN India also plans to source the after-treatment locally. Mommertz added that engine output improves by 80hp, from 220hp at BS III to 300hp at BS IV. He also said that from April the same regulations and therefore new driveline were to be applied to the coach segment.

Mommertz said that MAN had invested heavily in its manufacturing facilities and engine production plant. Pithampur, he said, had a very modern engine and paint treatment plant. Mommertz said: “Aftersales is the backbone of the business.” As such MAN India’s aftersales services need to be expanded - one of its first initiatives the company is looking to invest in two to three key locations for training and aftersales support for certain export markets. At Pithampur, MAN already has its own training academy for engine and chassis maintenance for dealers.

Another recent development is the introduction of common rail engine technology with its BS III engine in place of unit injectors. This 6 cylinder, 6.7-litre D0836 common rail BS III engine is quieter but with more powerful outputs of 220hp to 280hp.

Product / Regulation

Pune - Tata International DLT Pvt Ltd (Tata DLT), a manufacturer and supplier of trailers in India based in Pune (a subsidiary of TRF Ltd1) is set to be the first ‘organized’ trailer manufacturer to homologate its range of trailers in accordance with the new mandated AIS2 113 trailer code and to receive certification by ARAI3.

Tata DLT has a manufacturing capacity of 300 trailers a month in Pune, and satellite plants in Jamshedpur and Ajmer, with monthly capacities of 75 and 150, respectively. It plans to manufacture the trailers in line with the AIS 113 type code starting at a fourth plant, which it opened in Pune in October this year. Thereafter, implementation of the AIS standard code is to be introduced gradually across its other three plants.

1TRF Limited is a subsidiary of the Tata Group of companies, which consists of more than 90 enterprises operating in over 80 countries. In 2007, it diversified into truck and trailer applications by acquiring York Transport Equipment in Singapore, Dutch Lanka Trailers (DLT) of Sri Lanka,and Aditya Auto Components of Lucknow, India. DLT was an established trailer manufacturing outfit in Colombo, Sri Lanka – DLT was renamed after acquisition as Tata International DLT Private Limited.

2AIS -113:2013 Automotive Indian Standard guidelines - type approval to certify trailers.

3ARAI- Automotive Research Association of India.

Tata DLT first to be ARAI certified for trailer code

December 2016

INDIA


Production / Management

Oragadam - To ramp up bus production in order to meet growing demand for its products in India, Daimler India Commercial Vehicles Pvt Ltd (DICV) in August assumed management control of the Wrightbus bus body production operations and supply chain in Oragadam, according to Jitesh Jain for DICV at Busworld India last month. While Wrightbus continues in its role in bus design, as Daimler has already a substantial supply chain in India, it seemed a logical step for Daimler to assume a closer management role, Jain explained.

2016 has been the bus operation’s ramp up year, explained Shina Satyapal, manager corporate communications at DICV. The company started with truck production in 2012 and recently passed the 50,000 total output mark (earlier this year it launched the next generation Bharat-Stage IV compliant 9t and 12t trucks), while output at its bus plant began with concept vehicles in 2015. Ms Satyapal said DICV has invested a substantial sum in its bus operations totalling INR 425 Crore (approx. EUR58m). The DICV bus division has a twofold strategy, Satyapal continued, with volume production under the BharatBenz name and top of the range products under the Mercedes-Benz name. Currently, it has three products - three vehicles at 9t gvw (school, staff and tourism). In the pipeline for 2017 introduction are 12t and 16t variants, announced Satyapal. Under the Mercedes-Benz logo it is offering its 2436SHD 14.5m high deck coach model. Bus sales have been focussed in markets of south and west India, Satyapal remarked and now the company is to expand its bus sales into the north and east of India. DICV has an extensive network (more than 80) of truck dealers and service partners throughout India.

On display at Busworld India 2016 in Bengaluru were two 9t gvw, 9.78m front-engine standard floor bus models – the Bharat-Benz School Bus

Daimler assumes management control of bus build operations to accelerate production

and the Bharat-Benz Staff Bus. With previews of these models in June 2015 and sales having started in January, the company has already exceeded its targeted sales volume for the year, Satyapal stated. Both models share the same drivetrain of a locally produced 4-cylinder 4-litre in-line inter-cooled and turbocharged engine (4D34i) meeting either BS III or BS IV emission standards and rated at 170hp for the school variant and 140hp for the staff bus. Both models are fitted with ABS as standard.

Safety – A high priority in Bharat Benz school bus design

The highly visible yellow school bus uses the Wrightbus Aluminique body structure with R66 rollover strength and meets a 42 degree tilt angle in the tilt test, which more than complies with ARAI’s recommended tilt test angle of 28 degrees. In addition to the ABS, an electronic pressure sensor is used to monitor the air pressure in the brake chambers and the VOSS connectors minimise the leaking of air, thus leading to highly effective braking. Safety is further enhanced in the chassis design, which as a wide frame width, tubeless radial tyres, and front and rear anti-roll bars for improved cornering, stability and better handling. Additional safety features in include individual seat (lap) belts on the two person bench seats, the interior is made from fire retardant fabric and plastics, anti-slip vinyl floor and access is facilitated via a retractable lower step. There is an emergency exit rear door on the driver’s side as well as all windows offer an exit with the life hammer mounted on the vertical stanchions on each side. The driver’s area is fitted with a guard to prevent children accessing the driver’s area; there is also a buzzer in the driver’s cabin, fire extinguisher and passenger announcement system.

Product / Export

Chennai - Daimler India Commercial Vehicle (DICV) of Oragadam, a wholly-owned subsidiary of Daimler AG, Germany, is to start export of 9-ton gvw fully-built Mercedes-Benz branded school buses1 to middle eastern countries, part of Gulf Cooperation Council2 (GCC), by end of this year.

The 9.1m long school bus is based on the Mercedes-Benz of 917 RF C front-engine chassis with rugged truck technology produced at the Indian Daimler Trucks plant at Oragadam, near Chennai. The four-cylinder 3.9-litre engine offers an output of 170hp (125kW). It is optionally available in either Euro III or Euro IV emissions regulations, depending on the market and regional requirements.

The school bus comes with 17.5-inch wheels, parabolic springs on both axles, anti-lock braking system, anti-roll bars and three-point seatbelts and comes with standard features like automatic stop arm, automatic fire suppression systems, CCTV (close circuit television) cameras and a LED (low emitting diode) destination board.

The Daimler bus is to be sold under Mercedes-Benz brand in the GCC countries. Currently the company is already exporting as 9 tonne chassis to

Daimler India exports fully-built-up buses to GCC countriesAfrica, South east Asia and Latin America, making the fully built buses a new development.

In future Daimler AG is planning to expand its portfolio on the domestic market by launching a 16 tonne bus chassis next year with plans to sell to the Indian STU’s for the upcoming years.

1The fully built buses comprise bodies built by Wright Bus Engineering Pvt Ltd, a subsidy of Wright Bus International of Ballymena,UK at its newly installed (2015/2016) facility in Oragadam within the DICV facility to cater to the Daimler bus future body demands.

2GCC – Gulf Cooperation Council member countries include, Bahrain, Kuwait, Oman, Saudi Arabia and United Arab Emirates.

Environment / Strategy

Mumbai – To play its part in reducing greenhouse gases from its production operations, Mahindra & Mahindra Pvt Ltd of Mumbai, Maharashtra State, has announced an investment of some USD4.4m over the next three years to reduce its carbon emissions by 25%. It’s operations, it says, currently produces in the region of 300,000 tons of carbon a year. Mahindra states it has become the first company in India to measure its operational activities in terms of carbon footprint. (The company is indicating a cost or carbon pricing in round figures of USD10 per ton).

Mahindra & Mahindra adopted the new carbon emissions reduction scheme, after several months of rigorous planning and effort in keeping with its progressive attitude toward sustainability. The company partnered with the World Bank, IFC and the World Resources Institute in India to gain an understanding of the carbon price mechanism.

Dr Pawan Goenka, executive director, Mahindra and Mahindra Ltd, said: “Mahindra is a pioneer in sustainability and is deeply committed to the creation of low carbon businesses. We have reduced our carbon emissions over the years and this new carbon price will help accelerate innovation and drive our investments in energy efficient and renewable technologies. We hope this encourages other companies to take action at a time when India’s emissions are set to rise in a business as usual scenario in step with the country’s economic growth.”

Commenting on the development, Tom Kerr, director, Carbon Pricing Leadership Coalition at The World Bank Group, said: “Mahindra & Mahindra’s new internal carbon price is an excellent example for companies in India and around the world of how smart companies are taking advantage of low-carbon investment opportunities while managing carbon risk.”

Mahindra & Mahindra taking action to reduce carbon emissions from operations

Exports not only by indigenous producers like Tata, Ashok and Eicher will rise; newly established brands like Bharat-Benz, Volvo, Scania and others will actively use India as an export hub for Asia, Africa and the Middle East. Volvo Bus Corporation in the past year has exported Euro 6 intercity buses to markets in Western Europe.

Above and opposite, as well throughout this issue, are a number of articles recording the key developments and product announced at the show. Busworld India 2016 was the best attended show yet, which included a visit by Shri R. V. Deshpande, Honourable Minister for Large and Medium Scale Industries and Infrastructure Development, Government of Karnataka.

Show Report - Busworld India 2016Continued from p4

Alternative Drive

Mumbai – The bus division of Tata Motors Ltd has partially completed its supply of 25 diesel series-hybrid electric buses since it was awarded the contract in March this year by the Mumbai Metropolitan Authority. All 25 will be deivered by April 2017.

Tata supplying 25 e-busesTata Starbus is the name of the diesel series-

hybrid electric low floor 12m, 32 seat/35 standee bus powered by a BS IV complaint 6B5.9 CNG 230hp Cummins engine connected in series with permanent magnet synchronous motor of 44KW with high-power lithium ion batteries and capacity of 11Ah, 3.74 kwh max. It featured electronically controlled air suspension (ECAS) and electronic braking system (EBS) with regenerative braking.

December 2016

INDIA


Product

Bangalore - Volvo Buses of Gothenburg, Sweden, used Busworld India 2016 in Bengaluru to unveil its new intercity coach range compliant with BS IV emission norms, which come into force in India in April 2017.

The new Volvo 9400 range, which is built in India at its modern facility in Hosakote, Bangalore, included the Volvo 9400 12m coach with the new BSIV 7.7-litre (D8C) 330hp engine, sourced from its global medium-duty engine plant in Pithampur, India, which is operated by Volvo Eicher Commercial Vehicle Pvt Ltd (VECV) - its joint venture company with Eicher Motors. The other model on the stand was the its best-selling Volvo 9400, 13.8m multi-axle or 3-axle coach now offered with a more powerful engine, being upgraded from 9-litres to 11-litres. A third option, but not on display, is the Volvo 9400 14.5m coach, again with the 11-litre engine. All three coaches are now being offered with Bharat Stage IV emission compliant engines.

Volvo Bus also used the show to officially unveil its BS IV compliant 7.7-litre (D8C) 330hp electronically controlled engine at the show, which is a 6-cylinder in-line unit with turbocharging.

Volvo Buses has now been in India for 15 years said Akash Passey, senior vice president – Business

12m Volvo 9400 coach now ready for BS IV normsRegion International, Volvo Bus Corporation at the show. He said the bus transport business and the bus manufacturing industry had undergone a sea change since 2001, the year the company had started in India. He pointed out that Volvo has pursued a strategy of maximising its local content and that the bus body in all Volvo buses in India was now 100 per cent localised. In addition it was now building buses in India for the European market; he said that its low-entry city bus, the Volvo 8400 fitted with a Euro VI compliant driveline, built in India had been sold and delivered to operators in Spain and in France.

Volvo Bus said that the new coach range addressed the evolving requirements of its customers and drivers, as well as aspirations of passengers. Volvo Buses also stated that there was growing demand for adopting intercity buses as an efficient and safe means of mobility. The new range is to be manufactured at Volvo Buses’ facility near Hosakote, Bangalore. From assembly of chassis to the roll out of complete buses, this facility, it says, follows Volvo Bus Production Systems that are implemented in all Volvo manufacturing sites across the world.

Volvo stated that it has sold more than 6000 buses in India, which includes 4,500 coaches and some 1,500 city buses.

Product / Expansion

Gurgaon/ Chennai - Tyre manufacturer, Apollo Tyres Ltd of Chennai has launched three new commercial vehicle radial tyres, Apollo EnduRace RD HD1, Apollo EnduMile LHD2 and Apollo EnduComfort CA3.

Rajesh Dahiya, Group Head – Sales, ISO (India, SAARC & OCEANIA) at Apollo Tyres, said: “This is a very special day for us as we take the next leap in Truck Bus Radials (TBR). We entered the TBR segment in 2010 and have grown stronger ever since. One main difference between Apollo and other brands is that we do not bring products from world-over and test them with the customer. We develop tyres along with the customer for the Indian market suitable for Indian roads and usage conditions and this has been a main reason for our market success. We are confident that each of the three products launched today will be a benchmark in its category.”

1Apollo EnduRace RD HD is a long haul drive tyre suitable for high speed operations and provides over 20% superior mileage than its predecessor.

Apollo launches three new radial tyresThe ventilated block design supports heat dissipation for cooler running and the ACTO casing design (Apollo Cord Tension Optimised) makes the tyre more durable supporting multiple retreads. The superior mileage compound and the optimized contact pressure ensues longer life of the tyre.

2Apollo EnduMile LHD is a regional drive tyre with ACTO (Apollo Cord Tension Optimised) Casing reinforced with 25% higher strength in the Belt & Body Ply. With stronger sidewalls too, this tyre is most suited for heavy-duty applications. The open and wide tread design helps heat dissipation resulting in faster turnaround. The hexagonal tread block design with tie-bars provides higher resistance to irregular wear.

3Apollo EnduComfort CA is an all-wheel pattern tyre, specially designed for luxury coaches. The optimized contact pressure and balanced rubber mass distribution with new age compound provides excellent handling (comfort) and mileage. The special tread design reduces in-cabin noise too.

Expansion/ Product / Agreement

Chennai / Canada – Shock absorber supplier, Rambal Ltd1, which is based in Chennai and is a subsidiary of the Shriram Group2, has announced plans to start manufacturing air suspension control systems or pneumatic active shock absorbers for bus, coaches and vans.

It announced it plans to invest USD4.49m in creating a new facility in Oragadam, near Chennai, to address what it sees as a rise in demand for air suspensions. Last year, in December 2015, Rambal Ltd announced it was forming a new technical tie up with General Kinetics3 of Brampton, Canada to localize and supply active shock absorbers4 for

Rambal to manufacture active shock absorbers for the Indian market

the Indian defence and civilian markets to justify the volumes for localization.

Mr. Sridhar, managing director, Rambal Ltd commented: “With increased demand for comfort in intercity coaches, staff and school bus applications, it is expected to see more opportunities for home grown export oriented players like Rambal.”

1A manufacturer of shock absorbers and other precision components mainly for global OEM’s, tier1 component suppliers, Rambal manufacturing facility is located in Chennai, spread across 7.5 acres, with capacity to produce 1 million shock absorbers per annum. Rambal is a renowned

export oriented supplier of struts, seat dumpers, gas springs for buses and trucks.

2Shriram Group is an Indian conglomerate, founded on April 1974.

3General Kinetics is a global manufacturer and supplier of dampers, shock absorbers; hydro-pneumatic suspensions; semi-active damping systems; coil over dampers; blast mitigation damping systems; seat suspension dampers for military vehicles, specialty trucks, and off-highway machines used in the construction, material handling, forestry, mining and agriculture markets.

4Active Shocks are described by Rambal as an advanced form of shock absorber offering real-time control on suspension system to offer maximum comfort to passengers. The continuously variable damping valve is controlled by a patented Ride State Aware algorithm that reads sensors embedded in the damper and the chassis to output the ideal damping force target in real time.

Manufacture / Product

Bangalore - The MG Group1 of Mumbai, the parent company of bus body builders, MG Automotive Pvt Ltd2 of Telangana and, Alma Motors Pvt Ltd3 of Karnataka is set to have built 100,000 units since its inception in 1996.

As part of its celebrations, MG Group announced it was unveiling two new vehicles at Busworld India 2016 in Bengaluru; the Columbus, a special low floor monocoque bus for airport operations (see separate article in this issue), and the latest version of its luxury coach, Mammoth, which is built on an MAN chassis for the domestic market; at the previous Busworld India 2015 in Mumbai it unveiled the Mammoth for international markets. The company said that it had sold some 12 Mammoth units primarily to Ethiopia. (See separate articles in this issue).

Mr Anil M Kamat, managing director, MG Group, said: “At about 90,000 buses a year, India is one of the biggest markets for coach and bus sales worldwide. We at MG Group are proud to be among the leading bus building companies in India with an annual installed capacity of 16,500 vehicles and have, since inception, manufactured over 8,000 buses across 25 markets globally for export markets. This year, we are celebrating 20 years of bus building in India and would like to dedicate and thank our esteemed customers and partners such as Mahindra & Mahindra, Ashok Leyland, VECV, Tata Motors and MAN, for the faith they have entrusted in us over the years, to be able to achieve this record milestone.”

1MG Group is one of the organized and OE approved body builders, building on chassis supplied by major OEM’s like Mahindra & Mahindra, Ashok Leyland, Volvo Eicher Commercial Vehicles Ltd (VECV), Tata Motors and MAN.

2MG Automotive Pvt Ltd of Telangana (bus body builder) has factory space extending to 21,000 square metres (sq m) with an annual installed capacity of 12,000 buses. Its clients, as well as being the OEMs include State Transport Undertakings (Telangana and Andhra Pradesh) and other institutional clients. It is one of the leading privately-owned bus building groups in India.

3Alma Motors Pvt Ltd of Karnataka is spread over 18,000 sq m and offers an annual capacity of 4,500 buses. Its major clients and partners are the same as its sister company and the end user includes fleet operators, schools and institutional clients.

MG Group close to milestone of producing 100,000 buses

December 2016

INDIA


Statistics – Rigid Trucks

India - Sales of medium and heavy rigid trucks (7.5t gvw and above) in India decreased by 2.7 per cent from 95,081 trucks in the second half of 2015-16 to 92,508 units in corresponding quarter of 2016-17.

The total number of medium and heavy rigid trucks manufactured, however, rose from 113,495 units in the first half of 2015-16 to 116,685 units in 2016-17, an increase of 2.8 per cent. Production reflected the rise in domestic demand but also a rise in exports, which accounted for 13,631 units, up 35.1 per cent on 10,088 rigid trucks (7.5t gvw and above) exported in the same half a year prior.

Turning to the individual truck segments, sales of medium-duty rigid trucks (7.5t to 12 tons) experienced a growth rate of 11 per cent to over 21,000 units (19,204), whereas, the upper medium weight (12t to 16.2t gvw) segment recorded growth of 3.5 per cent during 2016-17 to register 21,679 units compared with 20,948.

Sales of lighter-weight heavy-duty rigid truck segment (16.2t to 25t gvw) increased to 6.9 per cent to 28,260 units in half of 2016-17 from the corresponding quarter of 2015-16, which was 26,444 units. VECV’s- Eicher leads this segment with production growth of 78.2 per cent and Mahindra Trucks and Buses Ltd. comes the second with the production share of 32.5%.

Sales of heavy-duty rigid trucks (above 25t gvw) pulled the total market down overall with a decrease in sales of 25.4 per cent from 28,485 units in half of 2015-16 to 21,252 units in half of 2016-17.

Production output reflected strong export growth during the period, with sales up 35 per cent at 13,631 units. Exports of heavy trucks, showed growth of almost 400 per cent to 1,405 from 287.

Rigid truck sales slip 2.7% in first half of 2016-17

Statistics – Tractors

India - Total tractor sales increased by 12.6 per cent during the first half of 2016-17 to register 21,032 units compared with 18,677 tractors in the same half of the previous year (2015-16). Tractor production was positive too, albeit an increase of 1.5% overall from 22,806 to 23,139 units. However, exports decreased dramatically by 58.5% to just 623 (1,502).

There remain two dominant weight categories in terms of sales volumes. These are the heavy-duty tractor unit (40t < GCW <49t) segment and light-heavy-duty segments (35t < GCW < 40t). The 40t < GCW <49t tractor segment is the largest, accounting for more than 50% of the tractor market. This segment saw sales grow by 3.4 percent from 10,286 to 10,632. The other main segment (35t < GCW < 40t) saw sales grow by 46 per cent to 4,761 units from 3,260 units.

Tractor sales grow 12.6% in first half of 2016-17

Statistics – Bus Half yearly

India - Bus sales (>7.5t gvw) in the first half (April to September) of financial year 2016-17 increased by 4 per cent to 23,882 units from 22,955 units in the same half of last year (April to September 2015-16). Total bus production, however, fell dramatically by 8.5 per cent to 25,144 units, from 27,467 in the same period of 2015-16. Total bus exports (>7.5t gvw) increased by 11 per cent to 5,634 from 5,076.

Bus and coach sales see positive growth in first half of fiscal year 2016-17

Turning to the individual segments, sales of intermediate-duty buses (ICV: 7.5t to 12t gvw) decreased by 2.6 per cent, decreasing from 11,203 units in the first half of last year to 10,914 units in same period this financial year. While export sales rose from 902 to 1,377 units, an increase of 52.7 per cent, production fell by 5.5 per cent to 10,773 from 11,396 units. Tata Motors is the dominant brand in

the segment (ICV: 7.5 tonnes - 12 tonnes) with sales volume of 3,439 units, down by almost 15 per cent, and SML Isuzu Ltd of Chandigarth had a strong half year in second place with sales of 2,414 units, up from 2,252 units, a rise of 6.7 per cent.

The medium and heavy bus and coach segment experienced sales growth of 10.8 per cent in the half year to Septmber of 2016-17 to 12,968 compared with 11,704 units last year. Exports in this segment increased by 2.0 per cent to 4,257 units from 4,174 units in the same period of 2015-16. Ashok Leyland still is the dominant supplier of large bus and coach chassis.

Trucks - Production, domestic sales and exports for April to September 2015-16 v 2016-2017

Manufacturer Production Domestic Sales Exports2015/16 2016/17 % Chg 2015/16 2016/17 % Chg 2015/16 2016/17 % Chg

7.5 tons < GVW ≤ 12 tonsAshok Leyland Ltd 4,041 4,344 7.5 2,927 4,091 39.8 212 288 35.8SML Isuzu Ltd 1,128 1,846 63.7 1,149 1,719 49.6 80 77 -3.8Tata Motors Ltd 5,683 6,690 17.7 7,740 7,121 -8.0 1,513 1,702 12.5VECVs - Eicher 8,603 10,333 20.1 7,388 8,386 13.5 572 1,087 90.0Sub total 19,455 23,213 19.3 19,204 21,317 11.0 2,377 3,154 32.7

12 tons < GVW ≤ 16.2 tonsAMW Motors Ltd 15 1 -93.3 15 1 -93.3 0 0 ---Ashok Leyland Ltd 9,345 10,416 11.5 7,333 8,046 9.7 1,749 1,958 11.9Tata Motors Ltd 20,603 22,501 9.2 11,770 11,003 -6.5 3,067 4,203 37.0VECVs - Eicher 2,286 3,588 57.0 1,830 2,629 43.7 362 752 107.7Sub total 32,249 36,506 13.2 20,948 21,679 3.5 5,178 6,913 33.5

16.2 tons < GVW ≤ 25 tonsAMW Motors Ltd 455 31 -93.2 455 31 -93.2 0 0 ---Ashok Leyland Ltd 8,358 9,157 9.6 7,049 8,813 25.0 499 300 -39.9Mahindra Trucks and Buses Ltd 919 1,218 32.5 917 991 8.1 0 36 100.0Tata Motors Ltd 18,504 18,487 -0.1 17,138 16,867 -1.6 1,547 1,621 4.8VECVs - Eicher 1,091 1,944 78.2 885 1,558 76.0 200 202 1.0Sub total 29,327 30,837 5.1 26,444 28,260 6.9 2,246 2,159 -3.9

GVW≥ 25 tonsAMW Motors Ltd 182 11 -94.0 182 11 -94.0 0 0 ---Ashok Leyland Ltd 10,061 5,953 -40.8 9,731 6,071 -37.6 10 0 -100.0Mahindra Trucks and Buses Ltd 958 625 -34.8 823 447 -45.7 140 109 -22.1Tata Motors Ltd 19,706 18,061 -8.3 16,589 13,681 -17.5 0 1,169 100.0VECVs - Eicher 887 972 9.6 562 640 13.9 137 127 -7.3VECVs - Volvo 670 507 -24.3 598 402 -32.8 0 0 ---Sub total 32,464 26,129 -19.5 28,485 21,252 -25.4 287 1,405 389.5

Total 113,495 116,685 2.8 95,081 92,508 -2.7 10,088 13,631 35.1

Tractors - Production, domestic sales and exports for April to September 2015-16 v 2016-17


26.4 tons < GVW ≤ 35.2 tonsAMW Motors 0 1 100.0 0 1 100.0 0 0 ---Ashok Leyland Ltd 1,839 1,321 -28.2 1,442 1,235 -14.4 94 56 -40.4Mahindra Trucks and Buses Ltd 162 644 297.5 172 677 293.6 0 1 100.0Tata Motors Ltd 2,074 1,864 -10.1 2,501 2,233 -10.7 893 19 -97.9VECVs - Eicher 125 309 147.2 74 263 255.4 0 0 ---Sub total 4,200 4,139 -1.5 4,189 4,409 5.3 987 76 -92.3

35.2 tons < GVW ≤ 40.2 tonsAMW Motors Ltd 14 0 -100.0 10 0 -100.0 0 0 ---Ashok Leyland Ltd 5,790 3,979 -31.3 2,939 4,044 37.6 40 22 -45.0Mahindra Trucks and Buses Ltd 262 402 53.4 173 301 74.0 2 34 1,600.0VECVs - Eicher 263 504 91.6 138 416 201.4 45 41 -8.9Sub total 6,329 4,885 -22.8 3,260 4,761 46.0 87 97 11.5

40.2 tons < GVW ≤ 49 tonsAMW Motors Ltd 10 0 -100.0 10 0 -100.0 0 0 ---Ashok Leyland Ltd 1,597 1,655 3.6 1,735 1,617 -6.8 5 0 -100.0Tata Motors Ltd 9,609 11,231 16.9 8,541 9,015 5.5 421 450 6.9Sub total 11,216 12,886 14.9 10,286 10,632 3.4 426 450 5.6

GVW > 49 tonsAshok Leyland Ltd 1,048 1,223 16.7 928 1,216 31.0 2 0 -100.0VECVs - Volvo 13 6 -53.8 14 14 0.0 0 0 0.0Sub total 1,061 1,229 15.8 942 1,230 30.6 2 0 -100.0

Total 22,806 23,139 1.5 18,677 21,032 12.6 1,502 623 -58.5Source: RACE Note: Excludes Daimler locally-built brands and imported vehicles

See statistics table on page 9.

December 2016

INDIA


See statistics table on page 9.

Statistics – Light-duty Bus

India - Sales, production and export of light-duty passenger vehicles (7.5 tons and below) all saw substantial increases in the first financial half (April to September) of 2016-17. Sales increased 8.5% to 27,651 units, up from 25,487 units, production increased by 16.5% to 28,206 (24,217) and exports increased by 33% from 2,042 to 2,715 units.

In the minibus segment with more than 13 seats (gvw ≤ 5 tons no.of seats including the driver > 13) sales increased by 2.4% to 9,727 from 9,497 and minibuses with less than 13 seats saw a massive growth of 9.4% to 3,679 from 3,364. Force Motors remained the clear market leader in both segments. Export sales in both segments also increased substantially.

In the heavier weight, light-duty small bus sector (5 tons ≤ GVW ≤ 7.5 tons), sales rose by 12.8% to 14,245 (12,626), while exports increased 13.7% to 2,104 units (1,850). Production, however, increased by 17.5% to 13,946 (11,873).Mahindra and Mahindra dominate this segment segment with the growth of 27.8%, its sales grew from 665 to 850.

Light bus segment up 8.5%

Statistics – Light-duty Trucks

India - Sales of LCV goods carrier vehicles (ie trucks gvw ≤ 7.5t) grew by 12.7 per cent to 167,923 units in the first half year of fiscal 2016-17 (April to September) from 149,010 units in 2015-16. Production of LCV goods carriers grew by 10.3 per cent to 201,457 units from 182,610 units, but exports, by contrast slipped by 0.4 per cent from 31,791 to 31,356 units.

The largest segment, GVW ≤ 2t, saw production rise 6.3 per cent to 68,345 units (64,265), reflecting steady sales growth domestically of 3.6 per cent to 54,478 (52,602); export sales, however, did not aid production figures as it fell by 5.2 per cent to 10,194.

The 2t ≤ GVW ≤ 3.5t segment, remained the most popular segment with a sales volume of 96,154 units, registering growth of 18.6 per cent from 81,081 units. While Mahindra remains the stand out performer in this segment, it Tata Motors that recorded the biggest percentage gain of 65.1 per cent in the first half of 2016-17 to 17,790 units from 10,776 units.

Both the heavier segments in this category, ie 3.5t ≤ GVW ≤ 6t and 6≤ GVW ≤7.5t, experienced positive growth in sales of 14.3 per cent to 11.402 units and 10.1 per cent 5,889, respectively.

LCV trucks sales up 12.7%

Bus & Coach - Production, domestic sales and exports for April to September 2015-16 v 2016-17


7.5 tons < GVW ≤ 12 tonsAshok Leyland Ltd 2,798 3,056 9.2 2,176 2,338 7.4 351 498 41.9Mahindra Trucks and Buses Ltd 703 766 9.0 838 837 -0.1 8 7 -12.5SML Isuzu Ltd 2,318 1,656 -28.6 2,252 2,414 6.7 10 3 -70.0Tata Motors Ltd 3,299 2,620 -20.6 4,040 3,439 -14.9 381 426 11.8VECVs - Eicher 2,278 2,675 17.4 1,897 1,886 -0.6 152 443 191.4Sub total 11,396 10,773 -5.5 11,203 10,914 -2.6 902 1,377 52.7

12 tons < GVW ≤ 16.2 tonsAshok Leyland Ltd 10,416 8,389 -19.5 7,390 6,678 -9.6 2,301 2,126 -7.6SML Isuzu Ltd 1 6 500.0 2 5 150.0 0 0 0.0Tata Motors Ltd 4,976 4,328 -13.0 3,838 5,135 33.8 1,697 1,972 16.2VECVs - Eicher 678 1,648 143.1 474 1,150 142.6 176 159 -9.7Sub total 16,071 14,371 -10.6 11,704 12,968 10.8 4,174 4,257 2.2

16.2 tons < GVWVolvo Buses India Pvt. Ltd. 0 0 0.0 48 0 0.0 0 0 0.0

Total 27,467 25,144 -8.5 22,955 23,882 4.0 5,076 5,634 11.0Source: RACE Note: Excludes Daimler locally-built brands and imported vehicles

Light Bus & Coach - Production, domestic sales and exports for April to September 2015-16 v 2016-2017


GVW ≤ 5 Tons (No. of seats including driver exceeding 13)Force Motors Ltd 7,116 7,929 11.4 7,091 7,165 1.0 13 101 676.9Mahindra Trucks and Buses Ltd 77 144 87.0 882 921 4.4 0 0 ---Tata Motors Ltd 1,753 1,847 5.4 1,524 1,641 7.7 143 387 170.6Sub total 8,946 9,920 10.9 9,497 9,727 2.4 156 488 212.8

GVW ≤ 5 Tons (No. of seats including driver not exceeding 13)Force Motors Ltd 2,210 2,721 23.1 2,269 2,977 31.2 21 21 0.0Tata Motors Ltd 1,188 1,619 36.3 1,095 702 -35.9 15 102 580.0Sub total 3,398 4,340 27.7 3,364 3,679 9.4 36 123 241.7

5 Tons ≤ GVW ≤ 7.5 TonsForce Motors Ltd 948 839 -11.5 918 949 3.4 2 32 1,500.0Mahindra & Mahindra Ltd 866 1,372 58.4 665 850 27.8 23 15 -34.8SML Isuzu Ltd 1,203 2,065 71.7 1,919 2,324 21.1 0 8 100.0Tata Motors Ltd 5,543 5,797 4.6 5,663 6,354 12.2 1,273 1,581 24.2VECVs - Eicher 3,313 3,873 16.9 3,461 3,768 8.9 552 468 -15.2Sub total 11,873 13,946 17.5 12,626 14,245 12.8 1,850 2,104 13.7

Total 24,217 28,206 16.5 25,487 27,651 8.5 2,042 2,715 33.0Source: RACE Note: Excludes Daimler locally-built brands and imported vehicles

Light Trucks - Production, domestic sales and exports for April to September 2015-16 v 2016-2017


GVW ≤ 2 TonsMahindra & Mahindra Ltd 15,189 15,489 2.0 12,280 13,193 7.4 2,970 2,768 -6.8Maruti Suzuki India Ltd 41 1,382 3,270.7 0 83 100.0 2 957 47,750.0Piaggio Vehicles Pvt Ltd 2,184 1,900 -13.0 2,228 1,768 -20.6 0 40 100.0Tata Motors Ltd 46,851 49,574 5.8 38,094 39,434 3.5 7,779 6,429 -17.4Sub total 64,265 68,345 6.3 52,602 54,478 3.6 10,751 10,194 -5.2

2 Tons ≤ GVW ≤ 3.5 TonsAshok Leyland Ltd 13,268 15,380 15.9 12,313 14,802 20.2 755 382 -49.4Force Motors Ltd 156 145 -7.1 206 174 -15.5 13 40 207.7Hindustan Motors Ltd 676 498 -26.3 672 377 -43.9 0 0 ---Mahindra & Mahindra Ltd 68,715 73,770 7.4 57,114 63,011 10.3 11,563 11,706 1.2Tata Motors Ltd 17,234 22,863 32.7 10,776 17,790 65.1 5,813 5,993 3.1Sub total 100,049 112,656 12.6 81,081 96,154 18.6 18,144 18,121 -0.1

3.5 Tons ≤ GVW ≤ 6 TonsForce Motors Ltd 564 1,269 125.0 577 741 28.4 13 12 -7.7Mahindra & Mahindra Ltd 1,591 2,191 37.7 1,122 1,353 20.6 499 965 93.4SML Isuzu Ltd 456 458 0.4 523 476 -9.0 1 7 600.0Tata Motors Ltd 5,506 5,279 -4.1 7,539 7,775 3.1 597 744 24.6VECVs - Eicher 206 1,101 434.5 215 1,057 391.6 193 273 41.5Sub total 8,323 10,298 23.7 9,976 11,402 14.3 1,303 2,001 53.6

6 Tons ≤ GVW ≤ 7.5 TonsSML Isuzu Ltd 1,047 1,229 17.4 836 1,165 39.4 80 91 13.8Tata Motors Ltd 5,452 5,562 2.0 1,417 1,613 13.8 907 598 -34.1VECVs - Eicher 3,474 3,367 -3.1 3,098 3,111 0.4 606 647 6.8Sub total 9,973 10,158 1.9 5,351 5,889 10.1 1,593 1,336 -16.1

Total 182,618 201,457 10.3 149,010 167,923 12.7 31,791 31,652 -0.4Source: RACE Note: Excludes Daimler locally-built brands and imported vehicles

Strategy / Market Trend

Chennia - In an October edition of The Hindu, an interview with T. Venkatraman, senior vice-president, Global Buses at Ashok Leyland, revealed that it was reconfiguring its bus business strategy to meet the changing market conditions resulting from introduction of new regulations. Venkatraman is reported to have said that its business model until now pre-dominantly had been to build and supply bus chassis, but now, with the introduction of the Bus Body Code it was contemplating body-building as a serious business opportunity.

Venkatraman also stated that intermediate duty vehicles (IDVs) would be the new focus segment in the bus field. “A combination of factors, the focus on last-mile connectivity, growing demand from the school segment and tourism application-related spurt in sales, had all augured well for IDVs,” he said. The aim was to change the mix between MDV (medium duty vehicles - 16 tons) and IDV (7.5 to 16 ton range). The ratio currently stood at 65:35, but he expects IDVs to dominate Ashok Leyland’s bus sales in the future.

AL sees business opportunity in fully-built buses

December 2016

INDIA


Statistics – Rigid Trucks

India - The total production volume of medium and heavy rigid trucks (7.5t gvw and above) fell by 12.4 per cent from 61,020 units in the second quarter (Q2) of 2015-16 (July to September) to 53,460 units in 2016-17. This reflected the fall in domestic demand but rise in exports. Domestic sales of medium and heavy rigid trucks in India decreased by 15.3 per cent from 53,462 trucks in the second quarter of 2015-16 to 45,291 units in the corresponding quarter of 2016-17. Exports accounted 7,124 units, up, 43.7 per cent from 4,966 on rigid trucks (7.5t gvw and above) exported in the same quarter of the previous year.

Sales of medium-duty rigid trucks (7.5t to 12 tons) experienced a growth of 2.10% to register 10,866 units, whereas the upper medium weight (12t to 16.2t gvw) segment recorded a fall of 6.65 per cent during 2016-17 to register 10,829 units from 11,600 units. VECV enjoyed the best times during the period, it sales buck the trend and rose by 23.23 per cent to 1,204 units.

Sales of lighter-weight heavy-duty rigid trucks (16.2t to 25t gvw) decreased by 3.5 per cent to 14,082 units in Q2 of 2016-17 from the corresponding quarter of 2015-16, which was 14,593 units. VECV sales rose by 61.42 per cent to register 636 units in the segment up from 394. Tata and Ashok Leyland still retain the lion’s share of this segment.

Sales of heavy-duty rigid trucks (above 25t gvw) fell by 42.78 per cent from 16,626 units in Q2 of 2015-16 to 9,514 units in Q2 of 2016-17.

Rigid truck sales fall 15% in second quarter

Statistics – Tractors

India - Total tractor sales decreased by 16.5 per cent during Q2 of 2016-17 to register 9,269 units compared with 11,096 tractors in the same quarter of the previous year (2015-16). Tractor production contracted by 38.8% overall from 13,464 to 8,234 units in the second quarter of fiscal 2016-17 and exports also decreased by 47.4%.

The two dominant weight categories tractor segment, heavy-duty tractor (40t < GVW <49t) and light-heavy-duty tractors (35t < GVW < 40t) had polar quarters: also recover slowly in Q2 2016-17 whereas sales of tractors 40t < GVW <49t shrank in number by 27.1 per cent in domestic sales from 5,875 to 4,285 units, but the other segment, the 35t < GVW < 40t weight category, recorded positive growth of 9.5 per cent to record 2,012 units compared with 1,838 units during the last financial year.

Ashok Leyland and Tata Motors continue to dominate both segments.

Tractor sales slide 16.5% in Q2 2016-17

Statistics – Bus

India – Domestic sales of large buses and coaches (>7.5t gvw) in the second quarter (July-September) of fiscal year 2016-17 increased by 7.1 per cent to 11,960 units from 11,163 units in the same quarter of last year (July to September 2015-16). Total bus production experienced a fall of 14.4 per cent to 12,191 units, up from 14,241 in the same period of 2016-17. Total bus exports

Large bus and coach sales showing signs of positive growth during second quarter of 2016-17

(>7.5t gvw) increased by 8.7 percent in 2016-17 to 2,963 from 2,727 in 2015-16.

Turning to the individual segments, sales of intermediate-duty buses (ICV: 7.5 tonnes - 12 tonnes) decreased by 4.7 per cent, from 4,221 units in the second quarter of last year to 4,021 units in the same period of 2016-2017. Export sales in the same category increased by 58.9 per cent from 455

to 723 units, but production fell by 28.2 per cent to 3,509 from 4,885 units. VECV’s Eicher brand was one of two in the segment (ICV: 7.5 tonnes - 12 tonnes) with sales increasing by 20.1 per cent to 603 from 502 units. The other brand to record improved sales was Mahindra Trucks & Buses.

The medium and heavy bus and coach segment experienced domestic sales growth of 14.4 per cent in Q2 of 2015-16 to 7,939 vehicles compared with 6,942 units last year. Exports in this segment faced a dip of 1.4 per cent to 2,240 from 2,272 units in the same quarter of 2014-15.

Trucks - Production, domestic sales and exports for July to September 2015-16 V 2016-17


7.5 tons < GVW ≤ 12 tonsAshok Leyland Ltd 2363 2439 3.22 1944 2163 11.27 90 112 24.44SML Isuzu Ltd 584 878 50.34 656 889 35.52 47 51 8.51Tata Motors Ltd 2775 3924 41.41 3991 3708 -7.09 889 980 10.24VECVs - Eicher 4912 4521 -7.96 4052 4106 1.33 350 459 31.14Sub total 10634 11762 10.61 10643 10866 2.10 1376 1602 16.42

12 tons < GVW ≤ 16.2 tonsAMW Motors Ltd 3 0 -100.00 3 0 -100.00 0 0 —Ashok Leyland Ltd 5498 5824 5.93 4429 4108 -7.25 596 1422 138.59Tata Motors Ltd 10897 10745 -1.39 6191 5517 -10.89 1443 2106 45.95VECVs - Eicher 1216 1672 37.50 977 1204 23.23 189 453 139.68Sub total 17614 18241 3.56 11600 10829 -6.65 2228 3981 78.68

16.2 tons < GVW ≤ 25 tonsAMW Motors Ltd 158 20 -87.34 158 20 -87.34 0 0 —Ashok Leyland Ltd 4993 4496 -9.95 4264 4513 5.84 231 95 -58.87Mahindra Trucks and Buses Ltd 505 489 -3.17 493 492 -0.20 0 4 100.00Tata Motors Ltd 9581 8455 -11.75 9284 8421 -9.30 782 976 24.81VECVs - Eicher 366 872 138.25 394 636 61.42 123 67 -45.53Sub total 15603 14332 -8.15 14593 14082 -3.50 1136 1142 0.53

GVW≥ 25 tonsAMW Motors Ltd 58 4 -93.10 58 4 -93.10 0 0 —Ashok Leyland Ltd 5655 1970 -65.16 5636 2852 -49.40 10 0 -100.00Mahindra Trucks and Buses Ltd 529 234 -55.77 434 173 -60.14 115 26 -77.39Tata Motors Ltd 10286 6352 -38.25 9871 6056 -38.65 0 324 100.00VECVs - Eicher 320 318 -0.63 285 178 -37.54 101 59 -41.58VECVs - Volvo 321 247 -23.05 342 251 -26.61 0 0 —Sub total 17169 9125 -46.85 16626 9514 -42.78 226 409 80.97

Total 61020 53460 -12.4 53462 45291 -15.3 4966 7134 43.7

Tractors - Production, domestic sales and exports for July to September 2015-16 V 2016-17


26.4 tons < GVW ≤ 35.2 tonsAMW Motors 0 0 — 0 0 — 0 0 —Ashok Leyland Ltd 1275 573 -55.1 850 682 -19.8 45 35 -22.2Mahindra Trucks and Buses Ltd 114 252 121.1 110 295 168.2 0 0 —Tata Motors Ltd 1844 1172 -36.4 1802 1308 -27.4 336 10 -97.0VECVs - Eicher 65 138 112.3 60 119 98.3 0 0 —Sub total 3298 2135 -35.3 2822 2404 -14.8 381 45 -88.2

35.2 tons < GVW ≤ 40.2 tonsAMW Motors Ltd 8 0 -100.0 6 0 -100.0 0 0 —Ashok Leyland Ltd 3279 1056 -67.8 1671 1763 5.5 30 22 -26.67Mahindra Trucks and Buses Ltd 122 145 18.9 79 85 7.6 2 34 1600.00VECVs - Eicher 126 121 -4.0 82 164 100.0 15 25 66.7Sub total 3535 1322 -62.6 1838 2012 9.5 47 81 72.3

40.2 tons < GVW ≤ 49 tonsAMW Motors Ltd 3 0 -100.0 3 0 -100.0 0 0 —Ashok Leyland Ltd 932 576 -38.2 1074 767 -28.6 0 0 —Tata Motors Ltd 5081 3664 -27.9 4798 3518 -26.7 185 197 6.5Sub total 6016 4240 -29.5 5875 4285 -27.1 185 197 6.5

GVW > 49 tonsAshok Leyland Ltd 611 532 -12.9 556 560 0.7 1 0 -100VECVs - Volvo 4 5 25.0 5 8 60.0 0 0 —Sub total 615 537 -12.7 561 568 1.2 1 0 -100

Total 13464 8234 -38.8 11096 9269 -16.5 614 323 -47.4Source: RACE Note: Excludes Daimler locally-built brands and imported vehicles

December 2016

INDIA


Statistics – Light-duty Bus

Sales of light-duty passenger vehicles (7.5 tons and below), recorded incremental growth of 3.7 per cent in the second financial quarter (July-September) of 2015-16 to register 12,109 units, up from 11,681 units in the previous year’s quarter. Production rose by 13.3 per cent and exports rose by 36.6 per cent to 1,411 from 1,033 units.

In the minibus segment with more than 13 seats (GVW ≤ 5 tons no. of seats including the driver > 13) decreased in sales by 0.1 per cent to 4,731 (4,735) units. Force Motors dominates sales with a segment market share of some 70 per cent; it sales edged up 0.8 per cent from 3,720 to 3,750 units.

Sales of minibus at 5t gvw and below with fewer than 13 seats (incl. driver seat) fell by 2.3 per cent to 2,208 from 2,260 units in the same quarter the previous year. Export sales surged up 373.3 per cent to 71 units (15).

In the heavier weight light-duty small bus sector (5 tons ≤ GVW ≤ 7.5 tons), sales were up 10.3 per cent to 5,170 (4,686), while exports increased to 16.5 per cent to 1,096 units (941). Production, however, fell by 0.6 per cent to 4,565 (4,592).

LCV bus sector up 3.7%

Statistics – Light-duty Goods

Sales of LCV goods carrier vehicles (ie trucks with gvw ≤ 7.5t) grew by 13.1 per cent to 87,762 units in the second quarter (Q2) of 2016-17 from 77,591 units in Q2 of 2015-16. Production of LCV goods carriers also grew, an increase of 8.0 per cent and export increased by 5.9 per cent.

The largest segment, GVW ≤ 2t, saw production increase by 3.9 per cent to 34,050 units, while domestic sales remained flat with registartions up just 0.59 per cent at 27,262 (27,101). This quarter witnessed a new entrant (Maruti Suzuki India Ltd) with sales of 83 units.

The 2t ≤ GVW ≤ 3.5t segment, which combines high payload and affordability, remained the most popular segment with a sales volume of 51,272 units, an increase of 21.8 per cent on the ame quarter in 2015-16.

Both other segments (3.5t ≤ GVW ≤ 6t and 6≤ GVW ≤7.5t) experienced positive sales growth of 14.5 per cent to over 6,000 units and and a modest 1.57 per cent to more than 3,000 units.

LCV trucks experiencing gradual growth in Q2

Bus & Coach - Production, domestic sales and exports for July to September 2015-16 V 2016-17


7.5 tons < GVW ≤ 12 tonsAshok Leyland Ltd 1363 1281 -6.0 1113 1017 -8.6 214 465 117Mahindra Trucks and Buses Ltd 207 197 -4.8 251 273 8.8 0 0 0SML Isuzu Ltd 972 530 -45.5 741 549 -25.9 1 0 -100Tata Motors Ltd 1399 761 -45.6 1614 1579 -2.2 182 218 19.7VECVs - Eicher 944 740 -21.6 502 603 20.1 58 40 -31.03Sub total 4885 3509 -28.2 4221 4021 -4.7 455 723 58.9

12 tons < GVW ≤ 16.2 tonsAshok Leyland Ltd 6304 4611 -26.9 4559 3713 -18.6 1165 1050 -9.9SML Isuzu Ltd 1 6 500.0 2 5 150.0 0 0 0.0Tata Motors Ltd 2739 2657 -3.0 2189 3286 50.1 999 1081 8.2VECVs - Eicher 312 1408 351.3 192 935 387.0 108 109 0.0Sub total 9356 8682 -7.2 6942 7939 14.4 2272 2240 -1.4

16.2 tons < GVWVolvo Buses India Pvt. Ltd. 0 0 0 0 0 0 0 0 0

Total 14241 12191 -14.4 11163 11960 7.1 2727 2963 8.7Source: RACE Note: Excludes Daimler locally-built brands and imported vehicles

Light Bus & Coach - Production, domestic sales and exports for July to September 2015-16 V 2016-17


GVW ≤ 5 Tons (No. of seats including driver exceeding 13)Force Motors Ltd 3552 4611 29.8 3720 3750 0.8 10 68 580.0Mahindra Trucks and Buses Ltd 36 48 33.3 385 404 4.9 0 0 —Tata Motors Ltd 597 728 21.9 630 577 -8.4 67 176 162.7Sub total 4185 5387 28.7 4735 4731 -0.1 77 244 216.9

GVW ≤ 5 Tons (No. of seats including driver not exceeding 13)Force Motors Ltd 1317 1740 32.1 1429 1831 28.1 7 13 85.7Tata Motors Ltd 952 827 -13.1 831 377 -54.6 8 58 625.0Sub total 2269 2567 13.1 2260 2208 -2.3 15 71 373.3

5 Tons ≤ GVW ≤ 7.5 TonsForce Motors Ltd 375 475 26.7 412 468 13.6 2 17 750.0Mahindra & Mahindra Ltd 385 464 20.5 192 211 9.9 5 4 -20.0SML Isuzu Ltd 424 815 92.2 673 943 40.1 0 0 —Tata Motors Ltd 2363 1827 -22.7 2356 2501 6.2 585 853 45.8VECVs - Eicher 1045 984 -5.8 1053 1047 -0.6 349 222 -36.4Sub total 4592 4565 -0.6 4686 5170 10.3 941 1096 16.5

Total 11046 12519 13.3 11681 12109 3.7 1033 1411 36.6Source: RACE Note: Excludes Daimler locally-built brands and imported vehicles

Light Trucks - Production, domestic sales and exports for July to September 2015-16 V 2016-17


GVW ≤ 2 TonsMahindra & Mahindra Ltd 9222 8204 — 8189 7230 -11.71 1446 1300 —Maruti Suzuki India Ltd 9 777 8533.3 0 83 100.00 2 661 32950.0Piaggio Vehicles Pvt Ltd 1139 815 -28.4 1010 799 -20.89 0 20 —Tata Motors Ltd 22396 24254 8.3 17902 19150 6.97 3545 4386 23.7Sub total 32766 34050 3.9 27101 27262 0.59 4993 6367 27.5

2 Tons ≤ GVW ≤ 3.5 TonsAshok Leyland Ltd 7193 8050 11.9 6596 7951 20.5 376 136 -63.8Force Motors Ltd 76 94 23.7 136 86 -36.8 0 16 100.0Isuzu Motors India Pvt Ltd 419 409 -2.4 418 292 -30.1 0 0 —Mahindra & Mahindra Ltd 34286 36958 7.8 28755 33331 15.9 6437 5762 -10.5Tata Motors Ltd 9803 12062 23.0 6186 9612 55.4 3316 3734 12.6Sub total 51777 57573 11.2 42091 51272 21.8 10129 9648 -4.7

3.5 Tons ≤ GVW ≤ 6 TonsForce Motors Ltd 390 529 35.6 350 428 22.3 3 3 0.0Mahindra & Mahindra Ltd 994 1147 15.4 663 676 2.0 343 490 42.9SML Isuzu Ltd 241 200 -17.0 319 270 -15.4 0 0 —Tata Motors Ltd 2958 2686 -9.2 3946 4166 5.6 325 459 41.2VECVs - Eicher 130 649 399.2 126 646 412.7 131 87 -33.6Sub total 4713 5211 10.6 5404 6186 14.5 802 1039 29.6

6 Tons ≤ GVW ≤ 7.5 TonsSML Isuzu Ltd 653 489 -25.11 530 665 25.47 73 25 -65.75Tata Motors Ltd 2852 3318 16.34 780 753 -3.46 501 414 -17.37VECVs - Eicher 2011 1737 -13.63 1685 1624 -3.62 365 366 0.27Sub total 5516 5544 0.51 2995 3042 1.57 939 805 -14.27

Total 94772 102378 8.0 77591 87762 13.1 16863 17859 5.9Source: RACE Note: Excludes Daimler locally-built brands and imported vehicles

Trade Event

New Delhi – October saw the Automotive Component Manufacturing Association (ACMA) hold the first edition of iAutoConnect; a two-day event where buyers such as OEMs, tier 1 suppliers and distributors from around the world are able to meet with Indian suppliers to the automotive industry. Held in New Delhi, India during October 6th & 7th the focus of the event was to establish export opportunities for the Indian automotive component industry.

Inaugurated by Pravin Agarwal, director for the Department of Heavy Industries - Government of India, the event created a platform for some 180 Indian ACMA members to display their product and services to potential distributor and customers from 45 countries. This event ties in with the “Make in India” initiative to open up export opportunities.

The next edition of this event is planned to be held in New Delhi from 11 to 13 October 2017.

ACMA holds first buyer meet seller event

December 2016

INDIA


Product

Zaheerabad - The MG Group used Busworld India 2016 in Bangalore last month to announce derivations of its Mammoth coach for the domestic market.

The Mammoth premium luxury coach, which is built on a front-engine MAN CLA bus chassis supplied from the truck and bus chassis plant of MAN Trucks India Pvt Ltd in Pune, was on display in two versions for the domestic market; a double bunk sleeper (30 places with aisle offset and 1+2 configuration) and a tourism coach with reclining seats (44 seats in 2+2 configuration). Each seat comes with USB charging port and above in the luggage rack there is fitted a reading lamp and air conditioning control. The MG Group reminded its audience at the show that Mammoth

MG Group launches domestic versions of Mammoth at Busworld

had been designed with the biggest focus on safety and features no fewer than eight emergency exits, including the ‘EM – Secure’ Rear Emergency Exit, which is patented by MG: This offers an escape route through the rear of the coach via a top-hinged rear panel that opens upwards and using steps that fold down.

The company said that it had managed to export 12 units since its launch at Busworld India 2015 held in Mumbai in March of that year with the majority being delivered to customers in Ethiopia.

Anil Kamat, managing director, MG Group, explained the company’s plans for the Indian market, he said: “Celebrating our journey of 20 years in the bus building industry, the launch

of ‘Mammoth’ will enhance our position in the market. We will be launching the ‘Mammoth’ in the domestic market in both seater and sleeper variants. With this new future ready product, MG Group is set to transform the bus building industry in India, and I am convinced that we’re setting new benchmarks for the entire industry.”

“Mammoth coaches,” Kamat continued, “will be available in four variants in the market. The price range will be between Rs. 60 lakh and Rs. 65 lakh depending on the type of variant and technical specifications.”

The MG Group said that it would pass building its 100,000 bus in 2016 and that more than 8,000 had been built for export to customers in more than 25 countries during the Group’s 20 year history. It builds on five domestic manufacturers’ chassis; they include Mahindra & Mahindra, Ashok Leyland, VECV, Tata Motors and MAN. Manufacturing takes place in two plants in Zaheerabad, Telangana and Belgaum, Karnataka, which collectively have an annual installed capacity of some 16,500 buses and coaches.

Strategy

Poland / Gurgaon – Good progress is being made by Solaris Bus & Coach SA and its bus building joint venture partner, JBM Group of Gurgaon, New Delhi in India, according to Mateusz Figaszewski, deputy public relations director at Solaris. The JV, the ownership of which is 80%

Solaris’s main focus with JBM JV is alternative driven bus development and component sourcing

JBM and 20% Solaris currently has two main focus points: The first is taking the Urbino electric and hybrid buses technology and transferring this technology into JMB’s fully integral city bus, which has already been developed with diesel and CNG powered drivelines. By sharing this technology in

a new market, Solaris sees the benefit of gaining cost advantages in terms of increasing volume of purchasing components for alternative drivelines. Solaris is to be responsible for electric and hybrid component purchasing and integration for the JV.

Figaszewski said that since the start of the year, the joint venture has been working well with project teams now well established. JBM is a newcomer to bus production, focusing on fully integral designs. It has committed to this project with the formation of new state of art manufacturing facilities in Karnataka and Tamil Nadu over the past two years.

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Alternative Drive

Chennai - Ashok Leyland Ltd has unveiled a prototype of an electric bus, named ‘Circuit’ for evaluation purposes. Ashok Leyland said the electric bus had been developed in conjunction with its majority-owned UK subsidiary, Optare Plc1 and that its engineers had been working closing with its engineering colleagues at Optare, who have had considerable experience of building electric versions of its single deck bus, Solo; most recently at the Euro Bus Expo 2016 in Birmingham, it displayed a full electric version of the Metrodecker double deck bus.

An initial investment of USD3.3m has been spent in the development of the ‘Circuit’ bus,

Ashok Leyland launches Indian-made electric busstated Ashok Leyland with a further USD74.92m to be invested in phases for the complete product development and for establishment of production. Ultimately, the Circuit is to be built locally at two of Ashok Leyland plants in Alwar, Rajasthan and Viralimalai, Tamil Nadu.

Ashok Leyland states that the Circuit bus, with seating capacity for 35 seats and accommodation for up to 65 passengers in total, currently has a range for up to 120 kilometres on a single charge. The cost of the bus is expected to range from USD220,000 to USD450,000 depending on the configuration. It pointed out that around 60% of the product cost was that of the batteries, which

are imported currently from an unnamed supplier in the United States of America.

Ashok Leyland said subsidies / incentives are expected to be received under the FAME2 (Faster Adoption and Manufacturing of hybrid and Electric vehicle) programme from central government to make it affordable to the end user.1Optare Plc of Shurton-in-Elmet is part of Ashok Leyland. It is a bus builder of midi, single and double deck buses in diesel powered, hybrid and electric drivelines.2Faster Adoption and Manufacturing of Hybrid and Electric vehicle, or otherwise referred to as the FAME India Scheme, is part of National Electric Mobility Mission plan under the Heavy Industries Ministry, which has allocated USD2.1 billion to promote eco-friendly vehicles by way of incentives and subsidies.

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