The Hindu : Economical Transport

Online edition of India's National Newspaper
Monday, Mar 29, 2004

Business

Business

Economical Transport

INDIA IS one of the fastest growing commercial vehicle markets with a rate of growth that is second only to that of the Chinese giant. In contrast most `mature' markets, such as those of Europe, Japan, and North America, are either stagnant or even on the decline. It is no surprise, therefore, that many leading commercial vehicle manufacturers are making a beeline for this country.

Prominent among them is Volvo that set up shop here more than five years ago concentrating on multi-axle tractor-trailers, earth moving equipment and luxury long distance buses. Volvo's growing success seems to have finally woken the Indian majors, Ashok Leyland and Telco, from their slumber and both have recently made major commitments to this market. It must be mentioned, though, that Daimler Benz has always held a small share of Telco's equity while Fiat (through its subsidiary Iveco) has a small stake in Ashok Leyland. A new comer to this market is the light vehicle pioneer, Bajaj Tempo, in collaboration with the German major MAN. On the other hand, Eicher has stepped up to the medium commercial market with no help from its former collaborator, Mitsubishi.

To bring some precision to this analysis, and ignoring passenger buses for the moment, light commercial vehicles (LCVs) in India are generally thought to be those with a gross vehicular weight (GVW) of less than 8 or 9 tonnes, medium commercial vehicles (MCVs) range between 9 and 16 tonnes while heavy commercial (or more precisely, heavy goods) vehicles have a GVW of more than 16 tonnes.

Some of the most popular lorries in India are the Telco 1612 and the Ashok Leyland 1611 and 1613. These have a rated payload of 10 tonnes and straddle the MCV-HCV border. And that is probably why many do not distinguish between the two categories. But they are different. First, and foremost, the heavier vehicles have three sets of axles, which is why they are called multi-axle vehicles. Three axle vehicles are often found transporting petroleum products all over the country because the main petroleum marketers (IOC. BPCL and HPCL) have found that their 25 tonne GVW maximises useful loads while minimising risk and road transportation costs.

This message has finally been communicated effectively to smaller transporters of many other kinds of cargo who have often favoured the `regular' lorries in spite of the fact the total (fixed plus variable) cost, on a tonne-kilometre basis, of operating a two axle truck is about 10 per cent more than that for a three axle one. These costs drop by a further 10 per cent for tractor-trailer combinations with GVWs of between 26 and 49 tonnes.

Brazil is a developing country where these economies have found ready acceptance with sales of trucks with a GVW of over 5 tonnes dropping by nearly 40 per cent in the quarter century since 1979 because heavy goods vehicles, complemented by LCVs, largely supplanted the role of MCVs.

Volvo saw this immediately in India, not least because of its extensive Brazilian experience. Having said this, Ashok Leyland is really the Indian pioneer in this respect having introduced tractor-trailers over 40 years ago, in 1962. Unfortunately, however, the economics of tractor-trailer combinations was largely seen as notional by many operators although it was known for long that paying `just' fifty per cent more got a 150 per cent increase in payload. This seems to have been reversed recently with tractor-trailer sales having risen by nearly 80 per cent this year (2003-2004) compared to the last.

Besides truck operators and their consumers benefiting from these economies, society as a whole also benefits because reduced pollution is a hallmark of modern tractor-trailers with long haul operation reducing carbon monoxide, hydrocarbons, oxides of nitrogen and particulate emissions by over two thirds, on a tonne kilometre basis, when compared to most MCVs manufactured here since 1996. It is obviously no contest when one considers even older trucks.

Ergonomic, and sometimes air conditioned, cabs improve driver comfort considerably, allowing 20 hour per day operation with two drivers taking turns at the wheel. A concomitant benefit is reduced driver fatigue and, therefore, fewer accidents.

Each of the competitors has taken a different approach with MAN/Bajaj introducing a 49 tonner with a 360 hp engine. Telco matches this weight with a 296 hp engine of Cummins design while Ashok Leyland, at least initially, has introduced its 4026 J with a 40 tonne GCW and a 260 hp engine. The latter is capable of having its output raised to 300 hp, potentially also seeing it hauling 49 tonnes. All three easily meet the 2005 pollution norms that come into force in India next April.

The 260 hp engine that Ashok Leyland has chosen to power its tractors is from the Japanese company, Hino - a Toyota subsidiary. This eight litre engine sports ultra modern fuel injection, optimised combustion chambers with four valves per cylinder for excellent fuel economy and low pollution. Now in American, European and Japanese use, it meets current Euro 3 emission standards and is said to be potentially capable of being upgraded to the forthcoming, and very tight, Euro 4 standards. The Hino J series engine sits in an indigenously developed vehicle and will also power a new range of tippers and buses.

All four tractor-trailer manufacturers (including Volvo) have ensured that the entire power line, from the engine through the clutches and gear boxes to the axles and even the brakes, have been matched and vastly improved upon from current `standards.' Not doing so would have meant that the potential that the new engines offer would largely not have been realised.

C. Manmohan Reddy

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