19 November 2019

Interaction - Rajesh Kaul -Sales & Mktg, Medium & Heavy Commercial Vehicles, TATA Motors

Tata Motors bets big on Tipper Segment

 

India’s oldest CV major and global player, Tata Motors has managed to maintain its grip on the tipper segment by offering niche vehicles. Their Construck, Prima, and Signa, platforms all have tippers. In an exclusive interview to CONSTRUCTION OPPORTUNITIES, RAJESH KAUL, HEAD - SALES & MARKETING, MEDIUM & HEAVY COMMERCIAL VEHICLES, TATA MOTORS, discusses their latest offerings and their focus on emerging markets.

 

 

 

Which sectors are major demand drivers for your products.

 

At Tata Motors, we have an extensive variety of products catering the value, performance, and premium truck buyers. Tata Construck tippers cater to the widest range of sectors like road construction, mining, etc. They have stood the test of time and delivered value to customers operating in varied applications. Tipper vehicles are expected to grow further, given that the economy will improve with increasing construction, infrastructure, and irrigation activities.

The tipper sales at 27,918 for the year grew by 24 per cent over the last year, with strong demand from road construction, and mining sectors Tata Motors has done exceptionally well in the tipper segment with almost a 50 per cent market share.

In future, huge shift will be seen in the surface movement application of aggregates with many road projects getting a go ahead. Also there has been good demand on account of building of smart cities, SEZ projects, and other infrastructure projects across country.

India is now moving towards rated load regime. This means that more trucks are required to carry similar loads and the cost/ton/km will go up. Manufacturers of commodities like steel, coal, cement have been stressing on lower freight rates. All this will lead to the migration from low tonnage points to higher tonnage point vehicles. Tata Motors is all set with its 31Ton, 37Ton, 40Ton and 49Ton range of fuel efficient offerings and we are actively trying to convert the existing transporters to higher tonnage vehicles so that the efficiencies can set in and road transportation remains competitive vis a vis rail or other modes.

We are sure to have efficiencies of free borderless movements, gateless borders, RFID cards setting in. Benefits of GST will be greater in the vehicles that are moving interstate as compared to the tippers, which predominantly move, in smaller radius. However many big transporters in trucks as well as tippers will be looking to replace their old fleets in the post GST scenario.

Huge investments in infrastructure and industry will surely offset any contraction in demand due to consolidation and free movements. At the aggregate level, industry will see a very good boom post Sep’17 and the growth story should continue for next 2-3 years for sure.

 

 

 

Your strategy to play in a price sensitive market.

 

The company constantly works on its offerings and has kept up to the market place with the launch of newer, refreshed versions of its products and services to cater to various industries, ensuring that we continue to be leaders in the manufacturing, construction, and mining sectors.

As India’s most popular trucking brand, Tata Motors has been the first choice for Indian CV buyers.

For six decades, we have led the transformation in the Indian commercial vehicles space, winning customer appreciation for bringing world class-leading products and services. To ensure that we remain the most preferred brand, we will continue to launch new products and services and expand our presence in the international market, on the back of our new-generation range like the PRIMA, ULTRA and XENON.

With a range of offerings in the small, light, medium and heavy commercial vehicle segments, with – Best KMPL, Best Vehicle Uptime, Highest Resale Value, Best-in-class Warranty, Lowest Maintenance cost, we are placed well with the competition.

 

 

 

Cutting edge technology featured in your machines. What distinguishes them from competitors?

 

Our high tech cutting edge products offer the right value for our customers. (right technology for the right customer)

Tata Motors’ range of trucks offer the best-in-class KMPL, operating economics and TCO (Total Cost of Ownership), and the way we have planned our product strategy, our best-in-class operating costs give us a huge advantage.

Some of the other technological features relate to the 3-axle and 4-axle configurations, which are useful in specific applications like construction, mining, and infrastructure development. Their high performance is a result of specially designed mining tyres and stronger, more robust chassis frame and suspension.

Tata Motors took a pioneering step by introducing the Tata FleetMan Telematics and Fleet management service, with features like real-time fleet tracking, SMS and email alerts, Geo-fencing and remote unit management, all designed to address pressing need of fleet owners. It combines state-of-the-art IT and telecom equipment and software, offering one of the most advanced telematics solutions in the country. The service is marketed through the Tata Motors' commercial vehicle dealer network. We have consistently added value for our commercial vehicle customers through safety, enhancements in productivity, and economy of their operations, and are further equipping our range of trucks with FleetMan as an inbuilt feature system.

 

 

 

Aftermarket services as a strategic differentiator.

 

Since its inception in 1954, Tata Motors has been at the forefront of technology and product innovations that have contributed significantly in facilitating the nation's growth. Over 7.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. In terms of customer service, Tata Motors has stayed a step ahead and launched several programs that are tailor-made for specific needs. It is the first CV manufacturer in India, to introduce Customer Loyalty Programs such as Tata Delight/Tata Emperor offering loyalty benefits to its M&HCV customers. Services such as Sampoorna Seva (annual maintenance contracts), Prolife (reconditioned aggregates), Tata Alert (road side assistance), and Tata Fleetman have been recognized as benchmarks in the M&HCV trucks industry.

Tata Motors has an extensive network across the country with more than 1000 Workshops, and over 7700 retailers ensure effective service and availability of spare parts in every pocket.

Through our customised 24x7 Onsite Service Support, company trained experts are based at site. At the same time, spare parts and lubes are deployed at site to ensure that daily preventive and corrective maintenance activities are carried out more effectively and efficiently.

 

 

 

Features in your trucks enhancing safety and driver comfort.

 

Tata Motors has been in the Indian CV space for over 60 years. Over this period, we have developed a very deep understanding of the Indian market, with the widest portfolio of CVs to cater to the requirements of every kind of customer, a pan-India sales and service network, which is further growing in terms of touch points and enhanced experience levels.

The Prima range world class cabin offers high driving comfort with features like electronic instrument cluster, AC, luxurious cabin interiors with power windows, telescopic and tilt adjustable steering column, low NVH levels, etc. All these features ensure high driving comfort and safety in these vehicles

 

 

 

Other USP’s include:

Fuel efficiency - Targeted at 5-10 per cent higher than comparable tippers available in the market

Lowest cost of ownership and maintenance– We have increased oil change intervals and warranty to provide best in class TCO on our tippers

Largest service network of over 1600 touch points

Tata Motors introduced an warranty of 4 years, on its entire range of heavy trucks with 25 tons and higher GVW

Selective catalytic reduction (SCR) for tippers which gives long term reliability and better results

 

 

 

Do you offer equipment finance or do you have tie-ups with finance companies for the same?

 

TML has tie-ups with financers who provide flexible funding options customising the schemes as per business requirement. More customised down payment, tenure, and EMI options, along with best in class insurance options are available for our customers.

Customers in rural areas can get vehicles based on their agricultural documents, whereas salaried employees can get the same based on salary slips. Transporters with work contract looking for a 100 per cent funding can also find lucrative schemes from TML. In the past year, we have forged tie-ups with upcoming gramin and rural banks.

 

 

 

Your outlook for the rentals market?

 

Truck rentals depend upon multiple factors. Cost of vehicles, fuel rates, GVW and payloads of the vehicles used, number of trips, demand and supply of the commodities transported, as well as the vehicles used for transportation, other modes of transportation, taxation, and so on. Cost of vehicles has gone up due to BS IV setting in. Manufacturers are trying to bring in fuel efficiency technologies to offset the costs through better operating economics.

105 highway projects for `145,000 crore are likely to get monetized in the coming years. 1300 kms of highway is likely to be completed in next few years. Connectivity in North East is going to improve drastically. `40,000 crore has already been sanctioned towards road projects and the pace of building roads is increasing rapidly. Supply of aggregates is surely going to increase as road construction activity picks up.

Movement of goods back and forth from ports and extent of containerization is also likely to increase. So will be the production of steel and iron. All this is good sign for the rentals industry.

 

 

 

Impact of GST on your products.

 

We welcome the initiative by the Union Government for introducing GST, thereby bringing in one uniform tax across the country. This will bring about significant gains to the country's economy and advantages for the stakeholders, while enhancing the ease of doing business. Following the roll out of GST, we decided to pass on the entire benefit to our customers in the ex-showroom prices. We are offering a price reduction in commercial vehicles (cargo) in the range of 0.3 per cent to 4.21 per cent and in commercial vehicles (passenger transportation) in the range of 0.6 per cent to 8.2 per cent. We are confident that the post GST price reduction will enable the customers to bring down their cost of operations and in turn, boost demand.

Tata Motors is well placed to grow market share, with new products and innovative service offerings led by technology, at the right price for the right customer.

 

 

 

Are your trucks BS IV compliant.

 

Starting 2005 Govt. of India has progressively implemented higher emission standards with a vision to reduce (NOX), carbon monoxide (CO), and hydrocarbon (HC) and build a “Greener India”. Ministry of Road Transport and Highways (MoRTH) has declared pan India BS IV implementation in April 2017 and subsequently BS VI implementation from April 2020.

To achieve BS IV over BS III

BS III was achieved by controlling combustion temperature in the engine, thereby reducing PM, NOx & CO.

  • In BS III HC matter was not controlled.
  • In BS IV all by products are to be reduced –
  • 80 per cent reduction in Particulate Matter.
  • 30 per cent reduction in CO and Hydro Carbon.
  • 30 per cent reduction in Nitrogen Oxide.
  • Major change from BS III to BS IV is the introduction of Common Rail Direct Injection Systems. Most mechanical fuel injection systems are not able to control the timing, quantity, and pressure, of diesel during injection, which is required for optimum pulverization of fuel, and resultant optimized combustion to produce the desired level of emissions, which can be controlled through after treatment systems. Electronic engines with microprocessor control of fuel injection can achieve the desired results

At Tata Motors, presently we use Selective Catalytic Reduction (SCR) technology for engines above 130 HP in M&HCV vehicles. For 130 HP and below, we use the EGR. At higher temperatures, we have found that it’s better to use SCR as this technology gives significant benefits. Selective Catalytic Reduction (SCR) – is an advanced technology of after treatment to reduce NOx outside the engine. A synthetic DEF solution DEF (Diesel Exhaust Fluid) is injected upstream of a catalyst in the exhaust system through a dosing valve using a very accurate dosing pump. Decomposition Reactor converts DEF to ammonia through hydrolysis. In the presence of catalyst, DEF (Diesel Exhaust Fluid) reacts with NOx to create Nitrogen and Water Vapor. Single High Capacity Electronic Control Module (ECM) – a single ECM manages the engine and after-treatment system for optimum performance and fuel economy.

 

 

 

Extent of indigenisation and localisation of components in your machines in context of ‘Make in India.’ Especially challenges faced in incubating a Vendor Base concomitant to your Quality Standards.

 

 

We have indigenised many parts and have developed capabilities to make these parts in India. Our company has made huge investments in Uttarakhand, Sanand, Pune, Jamshedpur, Dharwad, and Lucknow. Entire ecosystem of vendors has developed in and around these plants, which strengthens government’s resolve of Make in India. Every year, we recruit GETs and PGTs from Indian campuses to boost the employment opportunities to Indian youth.

We have worked with multiple state agencies and ITIs to develop the driving capabilities and increase the available pool of drivers to meet the shortage of drivers in the India trucking business.

Future outlook on the industry and from your company perspective.

Over the past few months, there has been an improvement in the utilization of trucks. Tipper vehicles are expected to grow further, given that the economy will improve with increasing construction, infrastructure, and irrigation activities.

Tata Motors plans to enhance its presence in emerging countries, with a focus on APAC, Africa, and Middle Eastern markets, on the back of new range of world-class products like the Xenon, Super Ace, Prima and Ultra range of trucks.

 

 

Tell us about the range of tipper trucks offered by you, in terms of types, applications and capacities.

Tata Motors offers a wide range of powerful and fuel-efficient Tippers. These include:

 

Models in BSIV Range

Capacity

Application

Two Axle Tippers (16T)

LPK 1618

10cum Box ,
7 cum Scoop Body

Light Mining - Irrigation, Earth Work, Minerals Movement, Blue Metal & Sand Supply, Road Construction, Coal Movement, Earth Work

LPK 1615/ LPK 1613

10cum Box body

Highway Tipper- Blue Metal & Sand Supply, Coal & Minerals Movement, road construction.

On Highway Advantage- Economy and Power Mode feature for better mileage. Best in class Payload. Sleeper Cabin Option.

SK 1613

4.5 cum Box, 6.5cum Box, 8.5 cum Box, 10cum Box body

Surface Mining - Sand carriage, iron ore shallow mines to storage area, Building Construction materials, Stone Crusher sites, coal carrier from shallow mines to storage area.

Multi Axle Tippers (25T)

Prima Lx 2525.K

with AC

14 Cum Scoop, 16 Cum Box

Shallow Mining - Irrigation, Earth Work, Blue Metal & Sand Supply, Road Construction, Coal Movement, Minerals Movement

Prima 2530.K with AC

14 Cum Scoop, 16 Cum Box, 16 cum Scoop, 18 cum Box

Deep Mining - Coal mine, Tunnelling, Quarry, Coal Pit, Earth Work, and OB Removal.

LPK 2523

16 cum Box,

14 cum Scoop Body

Medium & Light Mining- Irrigation, Earth Work, Minerals Movement, Blue Metal & Sand Supply, Road Construction, Coal Movement, Earth Work.

LPK 2518

14 cum Box , 16 Box, 20 cum Box Body, 12 cum Scoop

Shallow Mining - Minerals Movement, Blue Metal & Sand Supply, Road Construction, Coal Movement, Earth Work, Minerals Movement.

LPTK 2518

16 Cum

Highway Tipper- Blue Metal & Sand Supply, Coal Movement, Minerals Movement, Road construction.

On Highway Advantage-Economy and Power Mode as a standard feature for best in class Mileage. Best in class Payload.

Multi Axle Tippers (31T)

Prima Lx 3125.K

with AC

18 Cum Box, 20 Cum Box,

22 Cum Box

Shallow and Moderate Mining- Blue Metal & Sand Supply, Road Construction, Coal Movement, Earth Work, Minerals Movement

Prima Lx 3130.K

with AC

18 Cum Box, 20 Cum Box,

23 cum Box, 19 cum Scoop

Shallow and Deep Mining- Blue Metal & Sand Supply, Road Construction, Coal Movement, Earth Work, Minerals Movement

LPK 3118

18 cum Box

Surface Mining and Shallow Mining - Movement of blue metal, limestone, coal, Surface Transportation

LPTK 3118

18 cum Box

Highway Tipper- Blue Metal & Sand Supply, Coal Movement, Minerals Movement, Road construction.

On Highway Advantage- Economy and Power Mode as a standard feature for best in class Mileage. Best in class Payload.

Tip Trailers

LPS 4018/ LPS 4923

24 CuM/ 28 CuM/ 32 CuM

Surface Transportation - Coal movement, Ore movement

 




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