Satayakam Arya, Managing Director, and CEO, Daimler India Commercial Vehicles Ltd.

Q. How is the transition to BSVI as compared to the earlier transition to BSIV emission norms?

A. The transition from BSIII to BSIV was a natural progression while the transition from BSIV to BSVI marks a quantum leap. This is the stage where the entire industry is working hard to make sure that the transition is made in time. A susbtantial jump involving the skipping of BSV norms, the transition to BSVI marks a good deal of complexity. Needed by India desparately, the transitions to BSVI involved the selection of the right ways to get the right emission levels. The Selective Catalytic Reduction (SCR) system has always been the choice at Daimler. We have an estimated 1.4 million trucks and buses running in more than 40 countries on the SCR system. We have more than 10 years of on-road experience globally. So, it is not only about believing but also about demonstrating how technology delivers as compared to others. In the case of BSVI, we are not talking about compliance at the time of sale but through the drive cycle. We firmly believe that it is the best technology out there in the market.

Q. Did Daimler India leverage technology and know-how from Daimler AG for BSVI?

A. We developed BSVI in India in coordination with our global teams spread across continents. We had to make sure that we got it right. The core technology in comparison to Euro6 is the same. For BSVI, it has been localised and industrialised. It has been more than 80 per cent localised. Fine-tuned to suit the local driving patterns in India, it has been caliberated to suit the usage of a truck in India, which is very different from Europe. In India for example, the average speed is less than in Europe.

Because of the usage pattern in India, we kept the hardware the same. What instead chose to calibrate the technology. We spent the last three years doing it.

Q. So, the BSVI and Euro6 use the same hardware but are calibrated differently?

A. The heart and soul of the two trucks are the same. In India, we carried out cosmetic and software changes. These were done to get the truck to best address the Indian driving cycles. Given the Indian market’s sensitivity towards running costs, we calibrated the BSVI technology such that the fuel efficiency will be even better than that of the BSIV vehicle. Continuing to lead in the total cost of ownership equation we have ensured that the service intervals are longer and the maintenance costs are lower. In the form of BSVI, we are offering a technology that is globally proven and has a better value proposition for the customer.

Q. What challenges lie ahead of you for the successful roll-out of BSVI CVs?

A. With some months left for the actual launch, we have our task cut out. There’s an amount of work left. It includes the preparation of the entire network for the transition. There is a need for training; for the selection of the right diagnostics tools and standard maintenance procedures. It is work in progress and will continue until the time of market launch. We have to ensure that the entire owner fraternity of the CV industry understands this technology. We will work with them and their drivers to train them to handle this technology on a day-to-day basis.

Q. Would the transition to BSVI cause any inventory issues?

A. We have always believed in keeping our production synchronised to ensure minimum stockpile. We have been very agile to synchronise production to the downturn by switching over from a two-shift production plan to a single-shift production plan. We have not lost out to a potential crisis.

Q. How do you look at the slowdown and the recovery from it?

A. We are very confident about recovery from slowdown. This is from a medium to long term growth potential perspective. What we are seeing now is a short term disruption due to various factors. I think the government is responsible and has taken early steps to arrest the slowdown. The government, I am sure, will not stop here. It will continue to do all that is needed to tackle the slowdown. What we are doing is to continue to invest with a belief that there is a potential in the medium to long term growth.