Trends: Smart manufacturing

Insurance: Tyred or just tired?

Witnessing manufacturing modernisation since Maruti Udyog began producing cars in collaboration with Suzuki of Japan at Gurgaon in 1984, the Indian auto industry landscape has drastically changed. Opening up to automation with the installation of some of the best robots available at Kuka, ABB and others, the auto industry has left no stone unturned. Such has been the fervor that Tal, a Tata Motors company, launched a robot called Brabo in 2018 to make manufacturing processes involving the application of sealants, picking and placing of parts, welding and vision inspection reliable and easy to perform. Made with an eye on manufacturing process the world over, the Brabo was tested in over 50 work streams and has so far found use in sectors like lighting, aerospace, software, electronics, plastics, education and logistics sectors apart from the auto industry. Coming from an auto maker that installed 300 Kuka robots to automate the assembly of Sumo and Safari at its Pune plant in 2009, the Brabo has seen many rounds of development and application-preparedness since its launch.                

Smart manufacturing trend

Highlighting the smart manufacturing trend, the TAL Brabo robot with payloads of two and 10 kilos has also found favour with companies in Europe and other places. Highlighting the prowess of Artificial Intelligence (AI) and Internet of Things (IoT), the robot is an example of the fast-changing manufacturing canvas. Producing about 1,286 engines per day, the Igatpuri plant of Mahindra & Mahindra became India's first carbon-neutral manufacturing facility by adopting smart manufacturing practices under Industry 4.0 in 2019. It invested in energy efficient technologies among others. It invested in recycling of water and other waste. It invested in solar panels to power some of its processes in the plant. An industry source expressed that the rapidly changing business environment the world over is providing impetus to smart manufacturing. It is driving efficiency enhancements and collaborations, he added. Emphasising on efficiency enhancements and collaborative efforts as key smart manufacturing drivers, an industry expert stated that technologies like AI, Industrial Internet of Things (IIoT), automation, big data and 5G are the biggest triggers. They are touching every aspect of manufacturing, from sourcing of raw materials to final inspection, he quipped.  

 

Industry 4.0

As companies like Lincode (it has collaborated with Switzerland-based Global Automotive Alliance), specialising in AI-powered visual inspection with multiple patent-pending defect detection capabilities, find more and more takers in India, the smart manufacturing shift is continuing to take place despite disruptions. It has, in fact, gained speed in India with the race to successfully accomplish BS VI transition in the last few years. A source in the auto industry mentioned that BS VI transition led to manufacturers upping their global ambitions. Vinay Raghunath, Partner and Leader, Automotive Sector, EY India, averred in a report that automotive shop floors are evolving and adopting digital technologies. This, he added, is happening amid challenges like slowdown in demand, non-availability of labour, concerns on health and safety management on the shop floor. Witnessing disruptions relating to ROI among other factors, as Raghunath has informed, the Indian auto industry has been an early adopter of digital manufacturing techniques.  

Working to dial higher efficiency, expertise and superior productivity, the Indian auto industry has been overhauling existing assembly lines, erecting new ones and extensively re-evaluating its manufacturing processes and practices in view of smart manufacturing, especially from an automotive value chain point of view. Taking to Industry 4.0, it is leveraging AI and IoT-based manufacturing technologies to automate further – to engage in machine-to-machine communication (M2M) such that there is self-monitoring as well as self-diagnosing. Taking to Industry 4.0 to tackle unanticipated disruptions like the Covid-19 pandemic, which has put well-oiled supply chains and production lines to the test and made it painfully clear that they in their current form are not as agile or resilient as expected, the auto industry is shifting to smart manufacturing in a big way. It is exploring and experimenting; it is finding new ways. It is doing so as it absorbs a significant change in technologies and products like electrification and EVs.

 

Operator 4.0 and hyper-intelligence

Investing heavily in data analytics infrastructure and capabilities, the auto industry is leveraging opportunities to digitally transform itself. It is defining the boundaries of physics for data-driven model. It is focusing on digital skills development. It is supporting the rise of Operator 4.0. Taking to collaborative robots that coexist with humans in a workplace, it is transforming its ways of manufacturing significantly. Drawing attention to the semi-conductor shortage and how the auto industry was affected despite using only 10 percent of the production, Vipin Sondhi, Managing Director, Ashok Leyland, explained that the rapidly changing consumer psyche is dictating a move to a completely different technological aspect. Emphasising on material technology, he said smart manufacturing is about digitising and achieving cost competitiveness. It was some two to three years ago that the Chennai-based CV maker began implementing smart manufacturing technologies to mitigate challenges. It took to modernising and digitising existing workplaces to address quality issues that are difficult for human beings to detect and acquire made-to-order or mass customisation capabilities. It took to equipping itself with an ability to expand and contract in tandem with the market conditions even as it took to modularisation of product lines.  

Automating its cab panel pressing plant at Hosur in 2019, which increased the output by up to 66 percent, Ashok Leyland has been one of the many automotive OEMs globally that are investing in hyper-intelligent automation. A confluence of AI and Robotic Process Automation (RPA), hyper-intelligent automation is redefining not just Industry 4.0 but also Operator 4.0. It is facing challenges like the high initial acquisition cost in terms of tools, but that isn’t worrying players involved like Tata Consultancy Services, Wipro, Mitsubishi Electric Corporation, Catalytic Inc and Infosys Limited among others. Estimated to grow at a CAGR of 18.9 percent as manufacturers strive to reduce energy consumption, up quality and reliability, and control costs through predictability and data-driven unique insights, hyper-intelligent automation is turning out to be yet another finer aspect of smart manufacturing. It is proving to be a big enabler for automating repetitive tasks – to enhance efficiencies, to take to cloud computing to ensure significantly more flexibility and to achieve scalability and the ability to collaborate and reduce costs.

Increasing visibility, predictability and enhancing control on operations and inventory, hyper-intelligent automation is aiding effective decision-making. Supported by development of new technologies such as 5G, which according to a domain expert, promises the need for speed and flexibility along with the capability to eliminate network instability or downtime, hyper-intelligent automation is helping automotive suppliers like Rane Madras Limited to make efficiency, reliability and cost control gains. In 2018, the company adopted automated solutions of Mistubishi Electric Corporation for its new plant in Gujarat. It led to a significant decrease in energy consumption. Aiding smart manufacturing, technologies like hyper-intelligent automation and 5G are helping the auto industry to achieve resilience and immunity against future uncertainties. They are helping to integrate Information Technology (IT) systems used for data-centric computing with Operational Technology (OT) systems – for data readiness and cyber security, and for the development of digital talent. Technologies like hyper-intelligent automation and 5G are helping to develop cross-functional profiles like engineering-manufacturing, manufacturing-maintenance and safety-security.

                                  

Tackling disruptions and smart working environment

Looking at productivity gains, emerging competition and risk aversity in the globalised world as per the EY report, the auto industry is taking to smart manufacturing to achieve significant technology transformations like electromobility as well. Apart from the creation of a smart working environment, it is also looking at the use of new materials, new process guidelines and practices. With health also becoming a disruptive factor in recent times, the auto industry is looking at automation in processes like inbound logistics, production planning, sourcing, press shop, body shop, paint shop, quality control and outbound logistics through data visualisation. With sensors and analytics shaping up, the smart working environment in a factory is coming to include AI-based alerts and fully automated work floors. This is increasingly getting compounded by data collection, historical data and high-quality extensive data mining. Helping to guarantee ROI, smart manufacturing is helping to lower the ‘takt’ time. It is also ironically undermining the involvement of humans on the shop floor.   

Reducing the cost of computation, storage and connectivity, smart manufacturing is coming of age with plummeting prices of sensors, 3D printers and robots. Empowering cloud-based manufacturing techniques and a gradual increase in the understanding of emerging technologies, smart manufacturing is providing an advantage in terms of the ability to respond to market changes quickly. Taking to develop a new light-duty truck platform with export ambitions and flexibility in terms of left-hand drive and right-hand drive orientation, VE Commercial Vehicles Ltd took to automating its welding line with robots at its Pithampur plant. It also took to robotising its windshield pasting station among others. Experiencing quality, consistency, efficiency and cost gains, the CV maker is also known to have reduced the takt time and energy consumption. As global ambitions and modularity strike in view of the ability to explore new export markets with a cost competitive BS VI product, the auto industry in India is using embedded sensors, RFID and GPS etc. for smart tracking. It is using smart manufacturing technologies to monitor parameters like temperature, pressure, vibration, machine rpm and flow rate.

 

 

Smart flexibility

As part of a shift to smart manufacturing, automakers and suppliers are resorting to flexible manufacturing and AR-based solutions to upskill. They are, in view of the technologies like connected vehicles and EVs, stressing on re-aligning their traditional manufacturing setups with that of the future. Emphasising on quality, resource optimisation, streamlining of business processes and adoption of new emerging technologies, they are closely evaluating the advantages of solutions like digital twins and rapid prototyping using additive manufacturing offer. With ROI on their mind, they are embracing smart manufacturing to move up the value chain.

 

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    Festive Season Uplifts Auto Industry Spirits

    Festive Season Uplifts Auto Industry Spirits

    Ajay Gabhane of Nagpur purchased a Kia Sonet on the eve of Diwali. He mentioned that his family found it right to replace their aging sedan with an exciting compact SUV during the festive season.

    Like Gabhane, Tushar Deshpande chose the festive season to purchase a new passenger car during the Diwali festive season in Pune.

    It were the individuals like Gabhane and Deshpande who contributed towards a cheerful festive season and Diwali for the Indian passenger vehicle and two-wheeler industry.

    After witnessing a slowdown in sales performance during the first and second quarter of FY2023-24, it was the festive season that saw the auto industry uplift its spirit on the back of higher passenger vehicle and two-wheeler sales, albeit asking the underlying challenges that saw dealers and their association go to town stating that inventory levels were at an all-time high.

    Until 29 October 2024, passenger vehicle registrations reached a record 4,25,000 units, according to the Vahan data. The previous peak was in January 2024 at 3,99,112 units.

    With the Diwali festival spreading into early November, it is expected that that the passenger vehicle registrations will bridge the 4,50,000 milestone. This would mean that almost 15,000 units were registered every day.  

    Starting at a slower pace, the festive sales picked up pace only close to Diwali this calendar year with two-wheelers registrations marking the most surge. Inside of the two-wheeler domain, it was the electric two-wheelers that contributed wholesomely to the sales surge. Among India's top electric two-wheeler OEMs, Ola Electric lead the pack with TVS Motors a close second and Bajaj Auto a close third.

    Contributing handsomely to what is already considered as the record sales year (FY2024-25) for electric two-wheeler sales stood at 109,643 units as on 28 October 2024, as per the Vahan portal data.

    This electric two-wheeler sales performance in the country should provide an interesting insight into how the Indian EV market is progressing and shaping up as well. 

    With the main celebratory period of Diwali falling during the last days of October made for an interesting trend in terms of October 2024 sales and November 2024 sales.

    With a sale of no less than 115,000 units expected by the time Diwali gets over in early November 2024, a significant uptake in sales performance would have been written in the financial books as compared to the sale of 88,156 units in September 2024.

    The superior performance of two-wheeler sales overall as compared to passenger cars during the festive season could be attributed to the uptake in rural markets of the country, read a report by Motilal Oswal Financial Services. During the festive season, the commuter two-wheelers experienced the highest traction among the ICE models and electric powered ones, the report mentioned.

    In his LinkedIn post, Ravi Bhatia, President and Director, Jato Dynamics, averred, “India's automotive sector experienced a classic relief rally in October 2024, driven by festive sentiment and aggressive discounting. However, with the impending Vehicle Identification Number (VIN) year change requiring sustained discounts, questions arise about the rally's sustainability.”

    The challenges, he said, were the sub-INR 10,00,000 passenger vehicle segment continuing to be under pressure, the upcoming VIN year change necessitating continued discounts and the question of demand sustaining post the festive season.
     

    Image for representative purpose only.

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      Alternative Fuel CVs

      Skoda Auto Increases Dispatch of Kodiaq 4x4 To India

      In the SCV category, the CNG-powered Super Carry faces competition from the Mahindra Supro and Jeeto, and the CNG version of the market leader Tata Ace. In the pick-up category above it, it is vehicles like the CNGpowered Mahindra Bolero which are finding good acceptance as an alternative fuel CV. Above the pick-up category, which is termed as the LCV segment, there are offerings like the Eicher Pro 2049 CNG, Tata 407 CNG and Tata 709 CNG which are finding acceptance as alternative fuel CVs in the wake of the rising diesel prices. With small, light and intermediate commercial vehicles turning unattractive due to the significant rise in fuel prices, transporters are looking at alternative fuel vehicles powered by LNG and electricity other than CNG to keep costs under control. An industry source mentioned that gaspowered small commercial vehicles have come to account for 40 percent of the total commercial vehicles sales in FY2020-21 as compared to under 10 percent in FY2018-19. He informed that a typical LCV (from sub-one tonne to 7.5-tonne GVW) consumes roughly 1,150 litres of diesel by running about 8,000 km per month, the cost of which is approximately INR 112,000 with a litre of diesel costing about INR 98 per litre in Mumbai. The CNG, in comparison, provides a fair reduction in cost of about 45 to 50 percent as CNG costs approximately INR 52 per kg in Mumbai, he explained. 
       

      CNG As An Alternative
      Supporting the shift to CNG by commercial operators is the technological advancement. Factory fitted CNG kits on BS VI vehicles are offering better performance, efficiency and reliability. They are presenting peace of mind to the transporter as they get AMC on the entire vehicle and don’t have to worry about the warranty getting void. Sensing a rising level of restlessness among their customers, commercial vehicle manufacturers revisited their CNG strategy. With escalating fuel price, they chalked out plans to develop CNG variants at certain tonnage points. The government announcement to expand CNG network also helped. The fly in the ointment being the geographical bias concerning CNG prices (CNG is cheaper in Delhi NCR than Mumbai or Pune), commercial vehicle manufacturers seem to have tuned their strategies accordingly. With Delhi NCR region toping in CNG vehicle sales, there are regions in the West and South that are lagging for the want of network and in terms of the respective fuel prices. With CNG-powered commercial vehicles in the 3.5-tonne and 15-tonne categories showing good demand, the comment by Vinod Aggarwal, Managing Director and CEO, VE Commercial Vehicles Limited (VECV), that he expects the share (of CNG vehicles) to hover around 25 to 30 percent assumes importance. VECV has the highly successful Eicher Pro 2049 with 5-tonne GVW. It has other CNG-powered BS VI compliant commercial vehicles too in the 5-tonne to 16-tonne space – on the truck side as well as the bus side.
       

      Apart from the CNG-powered Jeeto and Supro, Mahindra & Mahindra too is said to be working on rolling out CNG variants of its LCV and ICV range. Shyam Maller, former Executive Vice President – Marketing, Sales and Aftermarket, VECV, and a commercial vehicle industry veteran in India, averred that the significant escalation in the price of diesel vehicles (between 10 to 12 percent in the 5- to 15-tonne category) during the BS VI transition also made them unattractive. The fuel price rise further added to the sentiment. Putting the price escalation in the range of 8 to 17 percent approximately, depending on the segment the vehicle is in, Girish Wagh, Executive Director, Tata Motors, reasoned that this was caused by an increase in the technology content. Regarding the shift to alternative fuel CVs, he informed that the recent diesel price has increased customer focus on the total cost of ownership (TCO). Central to the operation of a commercial vehicle, the cost of urea dosing in vehicles above certain tonnage point has also altered the TCO. With Selective Catalyst Reduction (SCR), the fluid dynamics of BS VI emission complaint commercial vehicles has changed. Add the fluid costs to a series of vehicle price hikes in the last eight months, and the TCO equation concerning diesel-powered commercial vehicles has begun to look unattractive.

      Of the opinion that transporters have been under pressure since the rising diesel prices have impacted overall profitability and compelled a rise in freight rates, Wagh mentioned, “As the most significant variable, diesel price, depending on the segment and application, may account for 40-58 percent of the TCO. In percentage terms, it has increased by an estimated 10 percent.” Maller stated that the diesel price is accounting for over 60 percent of the TCO and leading transporters to look at either highly efficient BS VI emission complaint commercial vehicle or the one that is powered by an alternative fuel. In an interview to a leading newspaper, Shamsher Diwan, Vice President, ICRA, is known to have said that the (CNG vehicle) trend in terms of increasing penetration of electric commercial vehicles will play out in the mid-term in the wake of the rising diesel prices and restrictions on polluting vehicles. 

       

      In its earnings call for the first quarter of FY2021-22, Tata Motors mentioned that an improvement in CNG infrastructure had ensured that CNG vehicles are limited to certain pockets in the country. With transporter profitability under pressure, it should not surprise commercial vehicle manufacturers to accelerate work on variants as well as new product-lines in the CNG and EV space. While Wagh revealed that they are continuously working to improve the fuel efficiency of their products, which has helped in partially offsetting the impact of fuel inflation for the customers, Gopal Mahadevan, Director and CFO, Ashok Leyland, said in a recent interaction with Motoring Trends that they are applying thrust on CNG vehicles in the LCV and ICV segments.

      Petrol As An alternative
       Launching the petrol version of its SCV Ace in July 2021, Tata Motors stressed on it being the most affordable petrol commercial vehicle in its class. With a GVW of over 1.5-tonne, the vehicle, powered by a 30 hp (22 kW) 694 cc engine mated to a four-speed manual transmission, is priced at INR 400,000. Aimed at last-mile delivery applications much like the petrol version of the Maruti Suzuki Super Carry, it is claimed to have the lowest EMI of INR 7,500 per month. With petrol retailing at roughly INR 108 per litre in Mumbai, the case of petrol Ace or Super Carry is supported by their driveability, refinement and lower maintenance cost over their diesel counterpart. 

      Capable of catering to segments like logistics, distribution of fruits, vegetables and agricultural products, beverages and bottles, FMCG and FMCD goods, e-commerce, parcel and courier, furniture, packed LPG cylinders, dairy, pharmaceuticals and food products, perishable ‘refrigerated’ goods and waste management, vehicles like the Ace petrol, according to Wagh, have emerged as an alternative fuel option in the SCV segment. Of the opinion that an improvement in overall fluid efficiency during BS VI transitions along with several features and value enhancement has helped lower the TCO of petrol commercial vehicles, Wagh remarked, “These factors are also helping to achieve faster turnaround and payback.” In addition to the advantage of good pick-up and driveability, faster turnaround time and lower maintenance costs, he stressed on the Ace petrol’s acquisition cost, which is 16 percent lower than that of its diesel counterpart. Mahadevan acknowledged that they are seeing petrol CVs emerging at low tonnage (one to 1.5-tonne) points.
       

      LNG as an alternative 
      As a low polluting alternative to CNG, LNG could soon become a fuel of choice in long-haul commercial vehicles. Receiving a push from the Ministry of Petroleum and Natural Gas, which has outlined a USD 60 billion investment to create gas infrastructure in the country till 2024, LNG is expected to rise in terms of energy mix from the current 6 percent to 15 percent by 2030, according to Maller. As per a study, the liquefied gaseous fuel could be used by at least 10 percent of the 10 million truckers in India. Likely to cost 30 to 40 percent cheaper than fossil fuels, LNG could open up a big retro-fitment market for commercial vehicles as well. It could give rise to an industry manufacturing cryogenic cylinders among other LNG system components. Suitable to power heavy construction and mining equipment like 100-tonne class dump trucks and large excavators as well, LNG as an alternative fuel offers an advantage of higher energy density as compared to CNG. In the case of trucks or buses, the LNG-powered ones could do 600 to 800 km on a full tank.
       

       

      Drawing attention to an investment earmarked in the region of INR 100 billion over the next three years to create LNG infrastructure for long-haul commercial vehicles, Maller averred, “The setting up of 1,000 LNG stations is planned. Of these, some 150 such fuel stations are expected to come up on the golden quadrilateral at an interval of 200 km.” “The first LNG station among those earmarked has already been set up at Nagpur in July 2021,” he added. Retailing LNG at INR 62 per kg, the pump is claimed to be operated by the Indian Oil Corporation. The Indian oil marketing major has obtained several licences in recent years for the building of such facilities. GAIL (India) is also in talks with ExxonMobil and Mitsui, which could potentially partner as LNG suppliers as well as financiers for the initial lot of LNG trucks that would run in India. Stressing on the fact that a CNG ICV-class of trucks could today do Mumbai to Bangalore or vice versa with ease, courtesy the strategically located CNG pumps, an industry source informed that LNG vehicles could manage longer intervals between refills. They could match the range of diesel, he added.
       

      Electricity as an alternative 
      As per the Phase II of Fame II scheme, it is the electric three-wheelers that are poised to benefit the most as commercial vehicles. Overlook the fragmented nature of the business, and there is a big market for last-mile transportation in terms of shared mobility that is opening up. Attracting the participation of organised players like Mahindra Electric and Piaggio India, and regional players like Hykon and KAL, electricity as an alternative fuel is coming of age. Powering passenger and cargo three-wheelers, it is also driving a shift at the level of buses. Trucks are expected to follow. Promising lower overall TCO despite the higher initial acquisition cost, electricity as an alternative fuel is growing on the premise of reaching parity with fossil fuel-powered vehicles in the next half a decade as battery prices fall. 

      With corporates and e-commerce players looking at reducing their carbon footprint, electric commercial vehicles are already enticing interest in terms of cargo carriage at certain tonnage points. On the passenger carrier side, it is the buses that are rising in numbers across the country, courtesy a governmental push and a favourable PPP operating model. If the rollout of 40 Ashok Leyland e-buses at Chandigarh would highlight this, some 93 Tata Starbus e-buses are operating in Kolkata. Mahadevan averred, “We are watching EVs catch up at the local point of use on the encouragement of the government. It is more on the bus side, but trucks will soon catch up.” Maller remarked, “As of April 2021, over 1,100 electric buses are on the roads out of the nearly 5,595 buses. The FAME II with an outlay of INR 100 billion for a period of three years commencing from 1 April 2019 is set to incentivise demand creation for xEVs in the country. This phase aims to generate demand by way of supporting 7,000 electric buses, 500,000 three-wheelers, 55,000 four-wheeler passenger cars and 1 million two-wheelers.”
       

      ssues concerning vehicle cost (including TCO), battery life and range, charging infrastructure, finance availability and impact on payload are some of the challenges that will have to be addressed. A reasonably well-thought through estimate is that EV growth as far as commercial vehicles are involved, will be bottom-up. It will begin with SCVs and move up the tonnage points, said Maller. He added that this will be backed by fiscal incentives and governed by falling battery prices. The feasibility of battery electric vehicles for commercial use, explained Maller, is expected to elevate only after the battery pack cost per kWh goes down. A good threshold would be about USD 100.
       

       

      Considering the amount of distance to be covered, new experiments concerning electric vehicles in Europe are opening up new electrification possibilities. An agreement between truck majors Volvo-Daimler-Traton (the Group that owns Scania and MAN) leading to a collective investment of Euro 500 million to install and operate at least 1,700 high-performance green energy charging points close to highways as well as at logistic and destination points within five years from the establishment of the JV is one of them. The objective of the JV is to deliver CO2-neutral transport solutions to achieve climate neutrality by 2050.

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        Ashok Leyland drives digitisation and cost control

        Hankook New Tyre Supplier To European TCR Series

        Recording a 353 percent increase in the revenue for the first quarter of FY2021-22 at INR 29,510 million in comparison to the revenue generation of INR 6,510 million in the corresponding quarter of FY2020-21, Ashok Leyland is confident of a strong demand emerging post the second Covid-19 wave. Clocking export volumes of 1,437 units in the first quarter of FY2021-22, up 254 percent when compared to the export of 405 units in the first quarter of FY2020-21, the commercial vehicle manufacturer is concentrating on vaccination and the adherence of safety protocols to try and ensure that all its stakeholders stay protected from a potential third wave. Experiencing a 1,041 percent growth in domestic M&HCV volume in the first quarter of FY2021-22, which is almost twice than that of the industry growth volume at 562 percent during the same period, the company has reported a net loss of INR 28,20 million in the first quarter of FY2021-22 as against a net loss of INR 38.90 million in the corresponding quarter of FY2020-21. Selling 8,690 LCVs in the domestic market in the first quarter of FY2021-22, up 224 percent as compared to the sale of 2,686 LCVs in the corresponding quarter last fiscal, Ashok Leyland is closely observing the way the freight rates are shaping up. It is confident that freight rates will improve with higher availability of commercial vehicles once the Covid-19 subsidies and uncertainty fades. “We are hoping for the volumes to grow higher as the market gets better,” mentioned Mahadevan. “July (2021) has been a growth month,” he added. Stressing that they have had eight months of degrowth, Mahadevan said, “Economic growth will induce growth in CVs.”

         


         

        CV trends
        Working on a strategy for a robust domestic and exports growth, the commercial vehicle major is appointing dealers in Africa. Looking at gaining good traction in South East Asia, Ashok Leyland will launch new products in the LCV segment even though not in the immediate quarter. Buoyed by the international markets opening up and experiencing export thrust, the company is said to be testing an electric version of its LCV platform on which the Bada Dost is based in the UK. This vehicle is expected to be launched at the end of this fiscal or in the first half of the next fiscal. Of the opinion that electric vehicles are catching up, especially at the local point of use, on the encouragement of the governments, Mahadevan averred, “It is more to do with buses, but trucks will catch up.” Seeing a trend of petrol commercial vehicles in the low-tonnage segment of sub-1 tonne to 1.5 tonne, Mahadevan drew attention to the push on CNG. “We are ready in the LCV and ICV (segment),” he added. Of the firm belief that diesel vehicles will continue and the IC engine will coexist and not die overnight, Mahadevan said, “We are ready to cater to higher demand.” 
         

        Watching closely how freight operators are able to pass on the fuel price hike to their end customers, Ashok Leyland is hoping that bus commute will pick up. A 40,000 units per annum market, according to Mahadevan, buses have been severely affected due to the Covid-19-led disruption. Delivering 40 electric buses to the city of Chandigarh recently (from where it has bagged an order to build and maintain e-buses with quick charging technology), Ashok Leyland is expecting pent-up demand to show up once normalcy returns. Also expecting demand to show up because of the need to ferry people without sacrificing social distancing norms, Mahadevan drew attention to their work towards further strengthening their position in the bus and LCV market segments. With the talk of schools reopening in regions where the Covid-19 infections are down, and the relaxation in Covid-19 norms in some region allowing more employees to return to their offices, bus demand is expected to improve post witnessing a sudden downfall mid-last year. Through the establishment of Switch Mobility, Ashok Leyland is keen to experience a speedier ride in the ‘cleaner and greener’ bus space. 
         

        Managing costs and productivity 
        Eyeing international markets like the US, Europe and Japan, the company, through the Switch Mobility subsidiary, has worked with a few consultants to make sure that its data points and numbers are on par with the current situation. Under Switch Mobility, it is developing new products to present an advantage of unique position in terms of value and premium positioning. For its Switch Mobility subsidiary that includes the erstwhile Optare of UK, Ashok Leyland has managed to get USD 18 million worth of investment from Dana Incorporated (Dana), a US-based manufacturer of drivetrain and e-propulsion systems. To do de-bottlenecking once enough demand is evident, Ashok Leyland, investing sufficiently in terms of capex, is confident of seeing early growth sprouts in LCVs. Therefore, if it were to do immediate capex investment, it would be in LCVs. Discussing with scrappage centres post the announcement of the scrappage policy, Ashok Leyland, the second-largest CV maker in the country, is witnessing good traction from its other business verticals like defence, power solutions and aftermarket. They are contributing to its top line. 
         

        With the pace of vaccination picking up and positively setting in, Ashok Leyland is expecting a demand spike in commercial vehicles after the fear of a third Covid-19 wave is over. This, according to Mahadevan, could happen in the second half of this fiscal. Focusing on costs, productivity and middle level management, the commercial vehicle major is also concentrating on reducing its carbon footprint. Apart from announcing strategic steps to move towards net zero carbon mobility through Switch Mobility, Ashok Leyland, said Mahadevan, has formed an ESG committee of the Board. The committee will guide and propel the commercial vehicle manufacturer to achieve its sustainability agenda.
         

        Digitisation
        As the world’s largest supplier of defence logistics vehicles, fourth-largest manufacturer of buses and the tenth-largest manufacturer of trucks globally, Ashok Leyland is driving AI-led digital transformation for strong business growth. Establishing a separate group focusing on business analytics called the Analytics Centre of Excellence, the company has invested in a data science team. It has also roped in employees from the business side to help with the information and data. Together, they have been given the responsibility to identify business function challenges being faced and how AI-enabled analytics can help resolve them. Starting roughly a decade ago and applying more thrust since 2016, the digitisation journey of Ashok Leyland has had an influence on efficiency enhancement and business optimisation. It has helped it to generate new revenue stream and build new business models. Rather than simply account for the initial acquisition price of its products, Ashok Leyland, as part of its digitisation strategy, is now participating in the lifecycle costs of its products in terms of spares, service and other value-added offerings. These lifecycle costs predominantly include those that the commercial operator or fleet incurs after he or she has bought the commercial vehicle, and until the end-of-life. 

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          Cameras for CVs

          TVS Eurogrip Showcases Range at Automechanika Dubai 2023

          Stating that they are witnessing good demand as well as interest for Driver Status Monitoring (DSM) cameras, Vanesh Naidoo, Founder & CEO, Safe Cams Digital Eye Solutions Pvt Ltd (SCDES), mentioned, “The ability of these cameras to detect sleepy and distracted drivers and then alert them within three seconds is game-changing.” “They, as a safety solution, are highly conducive to reducing road accidents in India, where around 38 percent of all road accidents are attributed to drowsy driving,” he added.  Claiming to be the first company in India to introduce DSM cameras, Naidoo stressed on fuel sensors that can connect to cameras and stream fuel information via 4G connectivity. “The driver reports that come out of this are helping companies save up to 20 percent of fuel costs,” he informed. “This,” he quipped, “is proving to be of much benefit to the fleets at a time when fuel costs have risen sharply.” Present in the aftermarket largely, SCDES is a young company. It was established in 2019 even though the groundwork began almost a year before. “The thought of entering this field was born from the high road fatalities in India,” averred Naidoo.
           

          Cameras as road safety solutions
          Pointing at the World Bank Report in 2020, which states that India accounts for 11 percent of global road accident victims while having only one percent of the world’s vehicular population, he said, “A majority of these deaths on roads are needless and can be avoided.” Of the opinion that speeding and drowsy driving account for close to 80 percent of road accidents, he explained, “The technologically advanced road safety solutions such as DSM and Advanced Driving Assistance system (ADAS) are instrumental in preventing accidents before they occur.” “The video footage available from the cameras onboard a vehicle helps analyse and hence understand its causes and find way to avoid them,” he remarked. Informing that his company specialises in two broad categories, consumer dash cams for individuals who own one or two vehicles and fleet solutions that cater to transport fleets and commercial operators, Naidoo explained, “Our Mobile Digital Video Recording (MDVR) systems can record on up to eight cameras per vehicle.” 
           

           

          Fleet safety solutions 
          The MDVR systems cannot just record on up to eight cameras per vehicle, they can store up to 4 TB of data for a longer period of reference and study. Naidoo explained, “Capable of incorporating features like GPS, Wi-Fi, 4G and various sensors (including temperature sensors in case of the carriage of perishable goods in a refrigerated container), tyre pressure sensors and fuel sensors), the MDVR systems allow live tracking and video streaming via 4G connectivity of any vehicle in the fleet.” Offering advanced technology DSM and ADAS compatible cameras that use Artificial Intelligence (AI), SCDES, said Naidoo, is in talks with bus transport companies for the DSM – with fuel transport vehicle fleets to install explosion-proof cameras and with commercial driving training institutes to help drivers understand the key dangers they face on the road and how to mitigate them. Assembling its consumer dash cameras at its facility at Pune, the company is working on localisation. Some electronic parts are not manufactured locally, according to Naidoo. The current R&D setup of SCDES tests various components of the camera and camera-based safety solutions like lenses, chipsets, low-light sensors etc. The setup also carries out tests in the area of successful configuration and suitability of usage under Indian conditions. “Our R&D setup has helped us to arrive at some unique solutions for local market requirements,” remarked Naidoo. 
           

          Traction in market segments
          Finding good traction in various market segments including cold chain transportation where cameras and sensing solutions aid the maintenance of the right temperatures, SCDES has achieved good traction in various other market segments as well. “Hyundai India is using our 4G cameras in their test vehicles to ensure testing and reporting as per the guidelines. Our solutions are also being used by the armed forces and municipalities,” stated Naidoo. Revealing that India is expected to follow European Union where reports suggest DSM and ADAS cameras to be mandatory from 2026, Naidoo concluded, “So far, there are no legal requirements for cameras to be used in any vehicular segments as per the law in India. This may however change sooner than later.” 
           

          Interview: Vanesh Naidoo, Founder & CEO, Safe Cams Digital Eye Solutions Pvt Ltd.

           

          1. Which automotive segments do the company’s products cater to?
          Our camera systems can cater to nearly all major automotive segments from bus transportation, goods transportation, employee transportation, taxis, school transportation and so on. With the ability to connect temperature sensors to our devices, Safe Cams’ devices can also be used for cold chain transport companies to ensure their temperature ranges are maintained. 
          2. Are the company’s products found in the aftermarket or supplied to OEMs as well? 
          At the moment, our products are found in the aftermarket.  

          3. Any institutions that the products have found favour with?
          Hyundai India is using our 4G cameras in their test vehicles to ensure testing and reporting is performed easily and per guidelines. The Indian Army has also purchased our dash cameras, and they are happy with the video quality of our devices. We also have supplied to international clients in Fiji and Kuwait. Safe cams also won the Dombivali-Kalyan Smart City contract to fit 4G dash cameras into the police vehicles; this is the first-time dash cameras have been fitted in police vehicles in Maharashtra.

          4. How are these products important in terms of safety, security and performance of a commercial vehicle or a fleet? What kind of cost savings could a fleet or trucker look at from the use of your product?
          Our Advanced AI cameras can prevent accidents before they occur – thereby reducing accidents that would happen (and the less to high costs involved therein) mostly due to drowsy driving and speeding. Around 80 percent of accidents are caused because of these two factors in India. 
          Cameras act as a natural deterrent to prevent theft/stealing as people know they are being watched. In the 2019 BSI & TT Club report, India accounted for 64 percent of Asia’s cargo theft. Our fuel sensors and driving behaviour reports and rankings can help save up to 20 percent of a company’s fuel costs and lead to savings of several thousand for a truck or a fleet owner. Our products have an average ROI of 120 percent in year one after buying (with the average payback period being 10 months on the cost of our solution). These savings come from a reduction in accidents (both in insurance costs and with the vehicle being able to be utilised for longer), reduction in theft and fuel savings.

          5. How is the market for your products picking up post the pandemic-led disruption? 
          We are experiencing an increase in enquiries about our cameras and how these can make road journeys safer. I think the pandemic has made more people risk adverse or at least risk aware, and hence safety products are seen as a priority now. Given that the number of road deaths in 2019 being even higher than the total number of Covid-19 deaths in 2020, this shows and is making people realise how poor road safety scenario is in India, and the urgent need to improve the same.

          6. The pain the Covid-19 pandemic caused to the company? 
          The Covid-19 pandemic hit us hard. We had a few deals put on hold as companies were not willing to spend on capex due to the uncertain market situation. Our consumer range could not be sold much as people were working from home and vehicles were parked off due to lockdown restrictions. Once the first wave of lockdown ended, we saw a bit of an upswing, only to be replaced with another lockdown months later. We have had to look at working capital issues and have tried to keep smaller inventory to combat the uncertainty Covid brought.

          7. What kind of growth do you anticipate? Will it be in any particular product offering or spread across?
          I think once people become highly aware of the advanced nature of the product and the benefits it offers, we will see a sharp growth in the dash cam market. India is the fifth-largest automobile industry in the world, but less than one percent of people use a dash camera compared to other countries like Singapore, UK and Dubai where between 10-25 percent of drivers own a dash camera. Currently, there is a huge gap in the market, which we at Safe Cams want to fill.

          8. What change in the automotive landscape do you anticipate, which will provide your company stronger growth traction?
          In the future, road safety will become an extremely important factor for the government and stricter enforcement of traffic rules will lead to a high adoption of dash cameras being used. New technologies like DSM that can prevent accidents will become mandatory on commercial vehicles, following the EU and America. Further, video analytics will become more and more important and 5G networks will mean devices can communicate with each other faster – and this will mean we can reduce the human involvement or reduce the reaction times to avoid an accident.

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