As a company, we are focusing a lot on reach and network so as to provide post-sales services to our customers
The first quarter and July have been very exciting for the Heavy-Duty Truck industry wherein the growth has been 100 %. Last year, the first quarter was down because of covid. But in the first quarter of this year, the industry had grown back by 100 %. And on the same side, VECV has grown to 140 %.
– Gagandeep Singh Gandhok
SVP, HD Trucks Business, VECV
Can you brief us on the growth projection of your company, its manufacturing facilities, and product range of heavy-duty trucks/tippers?
The first quarter and July have been very exciting for the Heavy-Duty Truck industry wherein the growth has been 100 %. Last year, the first quarter was down because of covid. But in the first quarter of this year, the industry had grown back by 100 %. And on the same side, VECV has grown to 140 %. We have not only overshot the growth, but we have also grown more than the industry and we have grown in our market share. We are sure that this momentum will keep on going and will see a big gain in this financial year.
Our estimates are that VECV will grow at 40-45% on a YOY basis. It was around 160 last year and I estimate it to be around 220 – 230. We are equally geared up to meet this demand. We have the world’s manufacturing facilities in Pithampur and now in Bhopal.
We have the widest range available in the commercial tipper industry. We have trucks from 18.5 tonne on a 4×2, 48 tonne in 10×2 haulage trucks, and 19-35 tonne tippers, with body options available in the capacity range of 7 Cu.M up to 26 Cu.M.
In tippers, we have the highest horsepower of 350 which is the highest across the industry.
What are the operational viability attributes of tipper trucks for applications in the construction and mining sector?
The construction and mining business is very different from the haulage industry. Tippers are working in close tandem with other machinery. There is a loader with loads into a tipper and for a loader, there are 4-5 tippers that are engaged. So, it is very important for any operator to know that the uptime of any tipper is of the highest quality. The operational viability will come if the tipper is able to perform in the given condition with the highest uptime.
Today, fuel is an important element and constitutes almost 55% of the operating costs and should have them optimum payload with maximum productivity to bring efficiency in the product. That is the key to any construction and mining business.
Tell us about your dealership network, customer support services, and spare parts supply for tipper trucks.
As a company, we are focusing a lot on reach and network so as to provide post-sales services to our customers. Total count of three years which includes sales, service, and spares dealers which stands at 378 as of 31st July.
To manage HD customers, we provide site support to the customers as the machines work on sites and cannot come for daily checkups. We camp at the customer end and provide services there at the site itself. We have 140 sites supporting 100-plus customers and 5000-plus vehicles.
This ensures quick and quality services and a superior uptime of almost 96 %
What about the spares in the after-sales initiatives for the vehicles?
Spare parts are very important because when a truck goes down, we need to have very extensive support and availability of spares to bring it back on road with dealership and manpower. We have added 228 touch points in the last 24 months. That means two set-ups per week.
We have 31 spare part distributors. We have 106 ETB shoppe and almost 5700 multi-brand retailers who keep our spare parts and this has built tremendous confidence in our customers.
What sort of innovative strategies the company is evolving to stave off the tough competition scenario in the country?
The only way to stay competitive in the market is to bring value to the customer. The customer starts realizing the value of you and your product if he sees the differentiated benefits. We are trying to reduce the operation cost of the customer and maximize his revenue through productivity or payload. We are also offering customized solutions. We are offering 100% connected trucks. All our trucks and buses are 100% connected and they come with 30 critical features like Fleet Management, Fleet Uptime, and other value-added services. We have an uptime centre in Pithampur which actually monitors vehicles operating all over India and provides service support through a dedicated team whenever a truck goes down. We also provide predictive diagnosis via this uptime centre enabling us to know a possible fault in a truck before it happens.
Indian customers are very price-sensitive compared to quality. How do you maintain the equilibrium between affordability and reliability?
When you load a truck with features, the cost will definitely go up. We have to educate the customer also that the acquisition cost plays only to the overall operating costs. And this he has to pay for only 4 – 5 years during the EMIs. The real value is in saving the fuel (diesel) which accounts for 5-60% of the operating cost.
We have a set of teammates whom we call the ‘Profitability Champions’ to work with the customer and make sure that whatever value the truck has to offer, goes back to the customer.
Can you put light on the cabin design of your trucks?
Being a group company of Volvo, we prioritize safety. We work a lot on the ergonomics part of the driver because we feel that if the operator of the vehicle is comfortable, he can run more. And if he is able to run more, the profitability will come back to the customer. We provide air-suspended seats in the mining area for the mining trucks with air-conditioned cabins.
How do you look at the future and growth opportunities of the HD trucks/tippers market?
The future is good for HD trucks and tippers, especially after coming out of covid. The E-commerce sector is growing, coal, steel, and irrigation sector are also growing. Most of the key segments in the industry are growing. This demand is directly pushing the requirement of HD Trucks because the consolidation is happening. The transporters or the fleet manager would like to go for the higher capacity trucks. The Tipper industry has been resilient over the past few years despite of covid, the industry has been growing. The infrastructure, road construction, new coal mines, new quarries, and civil construction activities – everything is growing since there is a push from the government. I feel that the CV space is bullish and analysts are already predicting that the markets will reach the pinnacle by this year.
Hits: 1
