Daimler India sets its sights high
Present in India since 2009, Daimler India Commercial Vehicles is keen to play a key role in shaping up the CV industry’s future.
Announcing that its Heavy Duty Truck (HDT) range has been BSVI certified, Daimler India Commercial Vehicles (DICV) is focusing on offering the best product line to address the operator requirements. Claiming to be the first CV manufacturer in India to get its HDT range certified for BSVI at ARAI, DICV has leveraged its Euro6 know-how to develop the BSVI technology for its CVs in India. Stating that they are keen to leverage the early movers’ advantage by extending a finely engineered BSVI technology, Satayakam Arya, Managing Director
and CEO, DICV, expressed that the knowledge for BSVI technology stems from Daimler’s global sales of over 1.4 million Euro6 vehicles. Receiving BSVI certification in July 2019, the company, mentioned Arya, has successfully adapted as well as engineered its Euro6 experience and knowledge to devise a suitable technology for the Indian market.
Hinting at the development of BSVI technology by taking into consideration some very unique requirements of the Indian operators,
Arya said that the leap from BSIV to BSVI amounts to a big one. He drew attention to the eight to 12 years of transition time taken by Europe and Japan. Among the early movers to the SCR system with the pan-India enforcement of BSIV, DICV was perhaps the only CV OEM in India that announced the launch of Euro5 trucks last year. Putting its faith in diesel over other propulsion technologies like CNG and electric with the view that the air that BSVI CVs will emit will be cleaner than the air they will inhale, DICV used the
BR900 Euro6 global programme SoP. Averred Arya, “At Daimler, work on BSVI emission regulation compliance was carried out with the view to offer technologically superior and fuelefficient products.” Stating that much care was taken to avoid the pitfalls associated with BSVI technology, including the possibility of price escalation, higher fluid consumption (of fuel and AdBlue), higher maintenance costs (due to system complexity) and higher kerb weight (due to additional parts), Arya revealed that attention was paid to ensure
that the BSVI CVs trump BSIV ones in fuel efficiency without sacrificing performance.
SCR tech for BSVI compliance
Banking on SCR technology for its reliability and proven track record, DICV is keen to launch the BSVI CVs in the first quarter of the next calendar year. It is looking at the availability of BSVI fuel. To begin exporting the OM926 engine series in the next financial year, the CV major, according to Arya, is looking at new opportunities the transition to BSVI will open up. Pointing at its export strategy as well as the ambitions, Arya explained that they are evaluating the prospect of exporting Euro6 CVs from India. “The transition to BSVI opens up more opportunities to export fully-built vehicles, engines, and parts to countries like Mexico, Chile, and Brazil,” he added. With the Latin American markets poised to migrate soon to emission norms similar to Euro6, the orientation of Daimler operations in India, which turns out four brands – BharatBenz, Fuso, Freightliner, and Mercedes-Benz respectively, is set to change drastically. Apart from further strengthening its position as a key member of Daimler’s global production network for CVs, DICV is set to further strengthen its position as a supplier of increasingly advanced components to other Daimler manufacturing centres over the world.
Emphasising on high level of localisation from the very beginning, and unlike some other markets of Daimler like the Euro5 Russian market where it has a joint venture with Kamaz for the manufacture of Actros and Fuso range of heavy and light-duty trucks and the manufacture of Mercedes-Benz Sprinter van with GAZ, and where localisation has been slow and is limited in scope, the DICV operations with the capability to turn out BSVI CVs looks strategically very well placed. Investing roughly Rs.500 crores to develop BSVI technology, DICV paid much attention to it to suit local usage patterns. Said Pradeep Kumar Thimmaiyan, Head – Product Engineering, DICV, that they have focused on higher local content and local usage patterns. Attaining a localisation level at SoP (BSVI parts) of 80 per cent, the CV major has optimised the driveline for Indian cycles and has strengthened the parts for local usage. Explained Thimmaiyan that the company undertook rigorous testing across the country. It tested BSVI products from Kashmir to Kanyakumari, and at four international locations as well.
Made for India
Paying much attention to fine-tune the BSVI technology to work in India and withstand the abuse it may be subjected to, DICV carried out 2.5 million kilometers worth of bench testing in addition to the pan-India and international testing and validation. The CV OEM used over 35 test vehicles and over 80 test engines for the purpose. Taking precautions to make minimal changes to the powertrain, DICV carried out changes to the after-treatment part of the system. Moving over to SCR during the migration to BSIV helped. Explained Thimmaiyan, “Bulk changes were carried out to the after-treatment system. To keep the after-sales and maintenance experience pleasant, we used the same strategy that we used in our Euro5 trucks. The BSVI technology only takes it forward with minimal
changes.” The same legacy engine continuing, albeit with a slight bump in power, the CV major has aimed at its products striking the lowest TCO. In-line with the company’s strategy since 2009 to keep the cost delta low, the move to BSVI had DICV capitalise every single opportunity to optimise system specifications and pick the most efficient one for India from its global product portfolio.
Paying attention to the selection of technology, its successful integration, size of the catalyst, and testing and validation, to ensure long service interval, DICV is aligning its various allied functions like sales and marketing, and service to cater to the needs of its BSVI customers. Carrying out roughly two-million kilometers worth of on-road testing, according to Arya, the CV major has incorporated the global competencies of Daimler Group into the training modules at its India dealerships. Expanding its footprint in India with
over 200 customer touchpoints, the company has set up new BSVI dedicated facilities to source 1000 new parts. Offering CVs in the nine to 55-tonne segments at Chennai, DICV is exporting CVs to more than 50 markets, including Africa, Asia, Latin America and the Middle East. The plant at Chennai measuring 400 acres, including the test track, follows one global quality standard set by its parent. Setting its sight on the five drivers (urbanisation, economic growth, climate change, shifting consumers, and technology) that have been shaping the future of mobility, the CV OEM is keen that a scrappage policy is announced.
The uniqueness of Indian market
Drawing attention to the growth in volumes during the 2014 and 2018 period from 180,000 CVs to 374,000 units, Arya mentioned that axle load norms, liquidity crunch, and BSVI compliance saw sales drop
from 256,000 in 2018, to 194,0000 in 2019. He opined that 2020 would witness a 15 per cent drop in comparison before a marginal organic revival in 2021 is visible. Claiming that there are more than 15 lakh vehicles that are BSIII compliant, or have a compliance level even lower, Arya averred, “The switch to BSVI coupled with the removal of older generation vehicles has the potential to reduce CO2 emissions by 2.06 MMT per year.” Opining that the implementation of stringent (10 per cent standard) fuel efficiency norms apart from incentivising manufacturers to achieve higher fuel efficiencies will help to reduce CO2 emissions by 2.0 MMT per year and reduce oil imports by 790 million litres per year, Arya mentioned that India is the only country where BSVI or equivalent emission norms are being implemented and at the same time cowl trucks are being sold.
Stating that there was a need to
shift to fully-built cabins in the interest of safety, Arya cited the Year-to-Date (YTD) comparison of 2019 with 2018. As per the comparison, the market dropped (-) 24 per cent, from 256,000 units in 2018 to 194,000 units in 2019, he stated. Of the opinion that the removal of old vehicles and the implementation of
BSVI has the potential to cut down NOx emissions by 92 per cent and PM by 90 per cent, Arya explained that urbanisation and economic growth would lead to an increase in mobility. This would result in congestion, air pollution, and higher fatalities, he said. Of the opinion that the shift in consumer base was leading to the
waning of interest in vehicle ownership followed by disruptions in technologies, paving new business models, Arya said that DICV was closely observing the changes that were happening. It would continue to invest in areas that will provide high growth potential, he concluded.