The USP of Hitachi Construction Machinery lies in its pivotal role in mining equipment technology, primarily driven by the Hitachi Platform.

BKR Prasad,General Manager–Marketing, Tata Hitachi Construction Machinery Company

What is your focus in IME 2023?

The focus of the IME revolves entirely around mining equipment. Historically, the exhibition used to be relatively small, but over the last 2-3 editions, it has experienced substantial growth. It’s now become a magnet for stakeholders, drawing in equipment manufacturers, vendors, and suppliers.

In recent editions, it has significantly expanded both in size and influence. This time around, our decision to participate was driven by the introduction of our new model, the ZAXIS 490H ULTRA. The main motive was to strategically leverage the platform, as it directly caters to all stakeholders, including Coal India, its subsidiaries, and the mining contractors they engage with.

The successful launch affirmed the trust our customers place in us, resulting in the delivery of three machines yesterday. Among the showcased models, the ZAXIS 670H stands out—a product introduced last August that has gained considerable traction in the market. Another highlight is the 5-tonne wheel loader ZW 225, launched last year, specifically designed for mining job sites and coal handling, addressing a significant demand in the industry. Alongside these machines, our displayed attachments are tailored to meet specific mining requirements, featuring the vibo ripper, drum cutter, and rock breaker, all compatible and curated for mining purposes. This comprehensive line-up embodies Tata Hitachi’s commitment to the mining sector.

What are the technological advancements you have done on these machines?

Before the ZAXIS 490H ULTRA, we introduced the ZAXIS 470H powered by an ISUZU mechanical engine. Now, with the new ZAXIS 490H ULTRA upgrade, we have transitioned to an electronic engine, a shift that significantly enhances machine performance and greatly benefits fuel efficiency. This move marks a substantial leap from mechanical to electronic engine systems, positioning us favorably for the transition to BS4 standards.

Looking ahead, as excavators, currently unregulated in India, move towards compliance, integrating an after-treatment device with these electronic engines will be pivotal. This strategic addition facilitates our transition from existing non-existent norms to the upcoming BS4 standards, signifying a monumental change for us.

Our ZW 225 wheeled equipment already aligns with India’s BS4 emission regulations. Furthermore, we have made strides in the development of BS5 standards. The government’s notification mandates the shift to BS5 for wheeled equipment, effective April 1, 2024, just five months away. Discussions are ongoing, with industry stakeholders engaging the ministry to potentially defer this by another 6 months to a year— decision on the same is awaited.

Despite ongoing discussions, we are steadfastly committed to readiness. Field trials for BS5 compliance are already underway, showcasing our preparedness to seamlessly meet the evolving norms.

Since you are making so much technological advancements. How do you balance the equilibrium between cost and quality with so much technological advancements?

The unique selling proposition (USP) of Hitachi Construction Machinery lies in its pivotal role in mining equipment technology, primarily driven by the Hitachi Platform. With a focus on advancing solutions for BS4 and future iterations like BS5, along with significant strides in machine connectivity and telematics, Hitachi has already made considerable headway.

Our goal is to position Tata Hitachi as a global hub by developing products tailored for the international market. Initially, there used to be a disparity between the technology of globally manufactured Hitachi Construction Machinery products and those sold by Tata Hitachi in India, with Hitachi models being a generation or two ahead. However, this gap has progressively narrowed.

Presently, our latest launch, the ZAXIS 490H ULTRA machine, is at the forefront of technology, aligning closely with global offerings except for emission norm regulations, not yet mandated in India. Apart from the after-treatment device, every component, technology, and feature incorporated into this machine mirrors what Hitachi Construction Machinery sells in the global market. This convergence has erased the gap, providing us with direct access to the latest technological advancements available globally.

With elections coming next year, Lok Sabha Elections, how do you look at the market for your products?

Typically, there’s a spike in demand in the pre-election year, consistent across the last 4-5 cycles. This year, we’ve witnessed robust demand, surprising those initially skeptical. YTD growth rates for excavators and wheel loaders stand at around 10%, while backhoe loaders have astounded us, boasting a 30% growth over the previous year. These figures define the current year’s exceptional growth. However, we’re cautious as 5 major states head into elections this quarter, with national polls scheduled for April-May. The announcement of poll dates triggers a code of conduct, potentially causing some blind spots in quarter 4. Yet, the momentum should persist, and by year-end, we anticipate demand to remain positive.

Looking ahead, next year’s elections and the new government settling in might impact demand, especially following this year’s high base. Fluctuations or sustained market conditions are possibilities, contingent on the current year’s market stability. Additionally, the migration to BS5 norms will elevate owning costs for wheeled equipment by approximately 7% to 10%, varying across equipment categories and migration technologies used from BS4 to BS5. This transition is likely to influence demand as well.

For India’s construction equipment industry, the BS4 to BS5 migration and the general elections could potentially adversely affect the next financial year. Conversely, mining experiences less volatility and might sustain demand despite fluctuations in the construction and infrastructure sectors. Therefore, while mining may remain steady, construction and infrastructure could witness corrections in the upcoming financial year.

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