Hyundai offers a lot of standard as well as optional safety features in our machines.

– Rajiv Chaturvedi, Vice President- Sales and Marketing After Service and Parts, Hyundai CE

How do you see the current and forecasted demand of Forklift in India and its market size?

After a dismal performance in 2020 (MHE market shrunk to around 11000 units from 13000 + in previous year), the Market has shown a substantial jump in Q1 – 2021 from 2300 units in (2020 Q1) to (4000 Units in 2021 Q1), on quarterly basis. This could be due to negligible business in 2020 Q1 on account of complete lockdown. We are expecting to have double digit YoY growth (18%-20%) this year (market size expected to cross 13000+ this year). Key drivers of growth are FMCG industries, Warehousing segment / Rental market and E-commerce companies.

What about the opportunities & challenges in the growth of this segment and how was the impact of Pandemic (covid 19) on the Forklift market?

Impact of pandemic was quite significant in this segment, as low demand from all segments resulted in overall shrinking of the market in 2020 (MHE market size a little less than 11000 units). Compared to CY 2019, it declined (around 18%- 20%) – thankfully, market seems to have come out from that stage now and showing a decent demand growth in first quarter of CY2020. Many new opportunities have come up especially in E-commerce / Rental segment. Cost absorption by customers is a big challenge mainly due to low capex budget across the industries. Abnormal increase in sea freight (400%-500%) has put a lot of pressure on imported players and cost of equipment has increased substantially. Even on supply side there are limitations and almost all MHE players are facing this challenge which is affecting delivery schedules to customers.

The second wave of Covid will again impact the growth of market which we have to be watch. We can see opportunities in Growth of E-commerce and online business which is showing increasing trends. This will surely result in creation / expansion of additional warehouses, which will further augment the demand from this segment, especially for warehousing Equipments. Hyundai products are proven for such operations and we are quite well equipped to cater to the increased demand for these customers. 

What is your analysis on the technological advancement and shifting trends from diesel variants to electric forklifts?

Due to higher focus on environment, optimization of cost of operation, popularity of electric forklifts is increasing and in many sectors, customers are replacing diesel fleet with electric ones. Electrical forklifts are very economical in running, are environmental friendly, due to which more and more customers are preferring this option. However, higher initial cost of Electric Forklift is a limiting factor for this segment. Many advance safety features are available in Electric Forklift as against Diesel like OPS, Std wet disc brake system, curve control system, programmable speed control, self fault diagnosed system and many more. Currently, the option of Lithium Ion Battery Forklifts are also available in the market. Driverless vehicle (AGVs) for specialized application is also gaining popularity.

Forklifts up to 5 tonne capacity are the major selling segment and contribute to almost 85 per cent of the total requirements. How do you see the demand of heavy-duty forklifts segment with an increase in import/export activities and exponential growth in ICDs?

Yes true. The demand is increasing in this segment. Heavy duty forklifts (8T and above capacity) are having low volume in Indian market, as they have got a specific segment to serve (Heavy Engineering Industries/ Ports and to certain extent airports.) Demand for such trucks are expected to be constant (or may increase moderately) in near future. This segment is expected to remain at 8%-10% of the total market of Approx 12500-13000 units.

How do you see the competition in the market in presence of many national & international brands? What is your core strength/USP which differentiates you from competitors?

Like any other segment MHE has also got high intensity of competition (Local Vs Imported, Low Cost Chinese Machines Vs Premium Machines). There are local players like Godrej/ KION with OM brand, ACE who are present in Indian market for many years. Now many imported players like Toyota, Jungheinrich, KION with Linde brand, Yale are also there in competition, considering India as a growing market.  Hyundai products are manufactured in S Korea with latest technology which ensures high performance and ease of operation. Our focus is to provide solution to customer rather than just selling products. We have many offering to customers which is unmatched in industry. For example, our SAATH SAATH scheme ensures 4 years continuous service support to customers which is unique and the very first in this industry. Technology wise we are using wet disc brake system as a standard/ full AC drive maintenance free motors, dual drive motors making our products extremely safe, compact and makes it guaranteed high performance machines.

Please elaborate on your material handling business, product range, and customized application solutions?

Hyundai is a global brand for MHE business. Our presence in India for MHE business is from 2015-2016. We have all kinds of MHE products suiting all kinds of customer needs. Depending upon customer requirement, we can customize the product and offer them.

We have Diesel Forklifts ranging from 1.5T to 25T capacity, Battery fork lift 1.6T to 5T capacity / Lithium Ion Battery forklift 2T to 3.5T. For warehousing solution, we have all kinds of equipment (BOPT/ Stackers/ Reach Trucks/ Order picker) / equipment for cold storage application. We can proudly say that we fulfill all MHE needs under one roof. We also have AGVs for special applications.

What about the safety features in your products?

Today safety is of paramount importance for any operation and Hyundai offers a lot of standard as well as optional safety features in our machines. For example, Automatic Reduction Of Speed In Corners/ OPS/ Load Display/ Wet Disc Brakes/Red Zone Lights/ Spot Lights/ Camera/Programmable Travel speed  and many more. We can also full fill customized safety requirement of customers if demanded, like Seat Belt Interlock (equipment will not move unless seat belt is fastened), for authorized operation finger print bio-metric system can be offered, option of rear camera for better visibility and safe driving.

How do you see the rental market of material handling equipment especially the forklift in India?

Rental market contributes Approx 25% – 30% for total market of Aprox 13000 units. MHE rental market in India is a growing rapidly at 20%, paucity of labour / expectation for higher productivity / to have safe working environment / shifting from Capex to Opex are the main reasons for increase of rental market. Many new organized players like Sudhir Power, Hitec Matflow, our own channel partners Yash Engg, New gentech have come in this segment and Hyundai is proud to be associated with them for their rental requirements. Some of the key parameters like rugged design for continuous working, safety features, low running cost and customisation options, makes Hyundai’s machines ideal for rental operation and most preferred choice of Customers.

What are your plans and growth strategies (organic and inorganic) to increase the business operations and revenues?

We have ambitious plans of growth in coming years. Our key strategies are focused around increasing our sales and service network to reach closer to customers, customer friendly policy. Option of extended warranty / continued service support for 4 years with ‘Saath Hamesha’ scheme, offer for CMC as per customer requirement and many other options bringing new products  and technology (like Lithium Ion battery fork lift, lithium Ion pallet trucks, new and improved 9 series order pickers, upgraded 9U series of battery forklift) for better performance. Our target is to be among top 3 MHE players in imported segment in next 2-3 years, with significant market share (>15%)

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