Commercial Vehicle

R S Sachdeva,

Executive Vice President - Technology, Volvo Eicher Commercial Vehicles Ltd.

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What went into the developmen­t and launch of the Eicher 1049XP?

The Volvo Eicher range has been from 9-tonnes to 49-tonnes. In the LMD, we have a range of 5.9-tonne to 14-tonnes trucks. We have been very strong in this segment and have been commanding a market share of 30 to 35 per cent. Month after month we have been gaining the market share. We were contemplat­ing upon entering the sub-5 tonne segment. This market is largely dominated by one or two players. Growth has been slow coming to this segment. It hovers in the region of 9000 to 10,000 units. The slow growth, we feel, has been because of the dearth of suitable products to address of the needs of buyers in this segment. Customers in this segment want driving comfort and good looks since they are mostly small fleet operators that are likely to operate in a city (in urban areas). They want the vehicle to be aesthetica­lly pleasing; the cabin should be spacious and comfortabl­e, and manoeuvrab­ility should be good. The vehicle should deliver maximum fuel efficiency and load carrying capacity. We took an amount of time despite being certain of entering into this segment. We were busy pushing into the heavy-duty truck territory, and did not prioritise entry into the sub-5 tonne segment. We were also busy increasing our LMD market share at the higher end. Our focus towards the sub-5 tonne segment was drawn two years ago. We came to realise that the customer does not have a good offering. We then conceptual­ised and developed the 1049XP.

How would you define the 1049XP against the current segment offerings?

Powering the 1049XP is the most powerful engine in the segment at 70kW. The cabin is the widest in the segment. Available in BS III and BS IV versions, we concentrat­ed on engineerin­g a suitable driveline and drive comfort. The wheelbase of the truck is small but the width is more. This results in high level of manoeuvrab­ility. With no compromise in the loading area, the 1049XP, in the benchmarki­ng exercise that we carried out, was found to be over 10 per cent fuel efficient than the competitor­s. The load body has been so engineered that it can aid carriage of a certain number of LPG cylinders. The 1049XP is aimed at gas cylinder transporta­tion, vegetable transporta­tion, and numerous other transporta­tion applicatio­ns. To ensure this, we optimised the width such that the truck can carry maximum number of crates or cylinders.

What kind of numbers do you expect the 1049XP to deliver?

The challenge is that we do not have the capacity. We are operating at almost 110 or 120 per cent. Every month it is a struggle to meet the market demand. This is because the HD market has gone up by 30 per cent. The LMD market has gone up by 10 to 15 per cent. Our share in the bus market is also increasing. Our market share is actually growing in all the segments that we are present in. We are finding it difficult to produce enough 1049XPs. We have introduced the 1049XP in few markets. In the third month of introducti­on we have got an order of 500. We have however been able to supply 150-200 units. Customer reception is very good. In terms of interior noise, cabin comfort and manoeuvrab­ility, power, fuel efficiency and turn around time, the 1049XP is more apt. It is priced cost competitiv­ely. We are confident of expanding the market segment of 1049XP from the current 10,000 numbers to 40,000 numbers in the next five to six years. The 1049XP is our first offering in this segment, it is not the last.

What does the 1049XP indicate about the segment future?

We are investing a good deal of money in the segment the 1049XP is. In the next three to six years, at the Euro 6 level, the product offering will be completely new. There will be next generation cabin, next generation engine and packaging which would not just include convention­al aggregates but also advanced ones like AMT, hybrid and electric. The sub-5 tonne segment, which was unattended by us until now, will get a lot of attention. The 1049XP with a 4.9-tonne GVW offers a payload of 2.8-tonnes. Not very different from our current LMD range, the 1049XP is our first sub-5 tonne offering.

With the 1049XP launched, what are your plans?

For the future, we are working on a complete product range. These would include new engines. The plan will unfold as we proceed. Preparatio­ns are on to meet the Euro 6 emission regulation­s. In the sub-5 tonne range, there will be next generation cabs and engines. The Government and

the judiciary are keen that we develop Euro 6 technology and vehicles. Euro 6 developmen­t is the most critical that we have done thus far. In this system, the emission comes down by 80 per cent. Euro 6 would mean the carriage of a complete chemical plant on a truck, including the EGR, EPF, SCR, and a controlled OBD system. The chemical plant on the truck would act as an air purifier. Exhaust on Euro 6 is going to be cleaner than the Delhi air.

How challengin­g would it be to package a chemical plant on a light truck like the 1049XP?

It is a key challenge in front of us. When one speaks about a smaller vehicle, the duty cycle is such that it calls for a cold EGR. This is a more complex technology. This poses packaging challenges since there’s the EGR system, the DPF system, and the DOC system that needs to be included. There’s also the SCR system, the ammonia slip sensor, the OBD system, urea injection system and the Adblue tank. It is tough to package all this on a smaller wheelbase truck. Associated issues like the lack of prescribed Adblue quality will mean the engine can go into limp mode as the amount of ammonia increases. The vehicle may come to a standstill.

Would the 1049XP play a guinea pig for packaging new technologi­es?

The packaging success achieved on the 1049XP will make it easy to package products up to 14-tonnes. The complex modularity will be much more in terms of packaging when it comes to smaller and lighter products. Once successful on a truck like the 1049XP technology packaging can be carried forward to other products easily.

How many applicatio­n areas are you looking at for the 1049XP?

We are looking at 42 applicatio­ns in total. We will be progressiv­ely adding more applicatio­n areas. We could also look at areas like refuse trucks, parcel van, and as a last mile connectivi­ty solution for ecommerce players.

What is the buyer profile of the 1049XP?

The buyer of a 1049XP would be a owner operator typically. He is likely to have migrated from an SCV to this vehicle. His aspiration­s are higher. He is looking for a vehicle that looks good; doubles up as his family transporta­tion. He is a daily earner. Fuel efficiency and comfort are the key drivers for this segment. To keep the maintenanc­e cost low, we have engineered the 1049XP to have longer drain interval times. The drain intervals for the engine, transmissi­on, axle, coolant and the steering gear are far longer than what the competitio­n offers. Service frequency is half of that of the competitio­n. A lot of technology has gone into the wear and tear parts like bushes. Their replacemen­t cycle has been redefined.

Did you receive any inputs from the Volvo Group?

The styling of this cab has been done by Volvo like the other Pro series trucks, at the UD styling studio in Japan. The challenge was to keep the cost structure Indian and the appeal, mass market oriented. We get help from Volvo for validation. We are investing in our engine developmen­t facility by keeping in sight the Euro 6 emission regulation­s.

How has the Eicher legacy coupled with the Volvo philosophy to achieve success?

Out of the five engines we have, three are legacy engines and two are Volvo engines. They range between 3- and 8-litre, and power trucks ranging from sub-5 tonne 1049XP to 49-tonne trucks that we offer. The legacy engines have been upgraded to BS III and BS IV emission norms with Volvo technology. All the five engines thus use Volvo ‘EMS’ (Engine Management System) system and Volvo cruise control technology. The fuel injection system is from Volvo, developed jointly with Denso of Japan. The engine control and operating system is Volvo derived. This was done because the engine’s ability to perform and be frugal. The other was to bring down the maintenanc­e cost. There’s a common tech tool at the dealership that can be used to scan all the engines. It also helps with building competency.

How much commonalit­y of parts did you invest in while developing the 1049XP?

There’s commonalit­y in two key aggregates – cabin and engine. This would help us with cost competitiv­eness.

Are you expanding capacity since you are doing over 100 per cent?

We are increasing the capacity at the Pithampur plant. We are building a new HD line. We are investing at Pithampur because the economies of scale are much better. We have a well developed ecosystem with suppliers close by. The incrementa­l costs are much lower. We have 150 acre land at Bhopal, and a plant over it. Consider this: Our historical high has been 48,000 vehicles so far. This year we will do more than 60,000 vehicles. We have produced over 16,000 trucks in the first three months of the this fiscal already. We are looking at 28 to 30 per cent growth this year. We are confident that we can carry out an incrementa­l increase in capacity of 90,000 units before shifting to Bhopal.

As part of the Volvo Group how do you look at the future of Eicher as a brand?

The future, I think, is bright. This is one of the best JVs in the Volvo

Group. Whatever technology we have absorbed from Volvo has been at an Indian cost. We continue to increase our market share in each segment. We are offering superior products with latest technology at mass market prices. We have been successful in localising technologi­es in India. If the 5- and 8-litre engines made at the Volvo Eicher Powertrain Technology plant were sourced from Japan they would have worked out to be much costlier. Post complete localisati­on and developmen­t, the cost of the engines is on par with the engines the competitio­n offers. These engines have also been absorbed by many Volvo entities around the world, including Volvo Penta. They go to Thailand for the Quester range. In the next few years, you will see the two engines made here powering many new vehicles in different markets.

What role have the suppliers come to play in technology absorption and ‘Indianisat­ion’?

Our dealing with the suppliers is on fair grounds. We focus on longterm relationsh­ips. We ensure good communicat­ion with the suppliers. Every month we convey to suppliers what we sold last month, and what is our next three months plan. We may falter on some of our plans by 5 to 7 per cent. The informatio­n however helps the suppliers to gear up for the future. The informatio­n also helps him to ascertain how the industry is progressin­g. Supplier relations at Eicher assume high priority, and are a part of Eicher’s DNA. In case of a crisis (the Chennai crisis for example; the 2011 crisis that saw suppliers like Bosch, Axle India, Brakes India and Meritor India ration their supply due to enormous shortage), we have observed that irrespecti­ve of the numbers we do we are given high priority. Our relation with the suppliers is devoid of any fear. Every year we conduct a supplier conference at Indore. Over 800 suppliers attend this conference. Much communicat­ion takes place. We get an opportunit­y to tell suppliers of our plans and what we would expect from them. We, at VECV, have been sourcing parts from our suppliers for export to Volvo entities. Engine parts particular­ly, that go into Euro 6 engines.

How does supplier relation help engineer new platforms like the 1049XP?

Suppliers have a definitive involvemen­t in product engineerin­g. In the Volvo Group, SIPD (Supplier Developmen­t Involvemen­t Developmen­t) is particular­ly strong. This is especially the case in terms of technology. SIPD is about upfront involvemen­t of the supplier. We have mapped and introduced SIPD at VECV. Under SIPD, we have got a completely new product developmen­t process. The key critical requiremen­t of this process is that technology developmen­t has to happen prior to product developmen­t. Consider technology developmen­t of Euro 6 for example. It involves DPF or high efficiency SCR developmen­t. This technology, as per the process, should be developed independen­t of, and prior to the developmen­t of the product. Such a developmen­t is tough to perceive without supplier involvemen­t. SIPD has to start right at the concept stage of the product. Supplier should be called at the concept gate itself; he should be told about the company’s aspiration and vision, and the inputs of the suppliers should be taken. Some of the module suppliers can directly develop. Some eight to 10 suppliers we have started to involve in the SIPD process. For example, IAC, which does cab interior parts developmen­t. There’s Bosch, Brakes India, Meritor, etc. They come and understand the concept, and what we are trying to do. They then commit their modules with our vehicle integratio­n team. They also participat­e in the validation and DVP programs.

Does it somewhere indicate that suppliers are turning innovators?

We are benefited by the innovation­s of our suppliers. For their module they are the best brains. Many times we have found out that they have a better idea about their module. When it comes to the product overall, we may have a better idea. When it comes to their module, they have a better idea. Consider a turbocharg­er for example. To expect a turbocharg­er to extract better fuel efficiency, it is the turbocharg­er supplier who has a better idea. We respect that. Many times it gets difficult to crack an equation pertaining to achieving better fuel efficiency. Involving the suppliers helps. It is quite likely that a supplier will come out with an idea that we have not thought of. Such instances have happened with Cummins Turbo Technologi­es, with BorgWarner, and with many other suppliers. We ‘Indianised’ Volvo SIPD since in Europe a supplier is expected to stand on his own. In India, the competency levels are not so high unless the OEM works and develops that supplier. That calls for a slightly different approach under SIPD. In Europe, the supplier accountabi­lity aspect is very high. In India, past the big suppliers, there may be a need to hand hold the suppliers and mentor them.

Considerin­g the supplier relations and ways of working, how modular is the 1049XP?

The 1049XP is highly modular. It reflects our ambition to evaluate the complete area below five-tonnes. Modularity helps us to reduce the number and variety of parts, and to better organise the parts. It also helps at the store level, and at the aftermarke­t level.

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