With the increased demand for production as well as time constraints, the 5-Ton payload Wheel Loader market has steadily increased over time.

– BKR Prasad

Head, Marketing and Product Development, Tata Hitachi Construction Machinery Company

The economy is on a slow growth path this year. What will be the impact of this on construction and the wheel loader market?

As far as the economy is concerned, let us put the past in perspective. GDP growth in FY 2019-20 was 3.7%, in FY 2020-21 -6.6% and is likely to be around 8.5% in FY 2021-22. Against this background, the CE sector grew by 9% in the 1st year of the pandemic FY 2020-21 and shrunk by 8% in FY2021-22, mainly due to the transition to CEV4 emission norms for wheeled Equipment. Hence, other factors impact the CE sector now more than the growth in the economy.

With this background, the government is the main anchor for growth through increased Capex in infrastructure. A 35% increase in Capex was announced for this fiscal with water supply, railways, PMGSY, and Swachh Bharat Mission seeing a significant increase in allocation. Add to this, NHAI is focusing more on constructing larger multilane highways through HAM and auctioning completed EPC projects through InVits & ToT. Further, they are monetizing projects through SPVs.

Last year, national highway construction was 29km/day – down from an all-time high of 37km/day in FY 2020-21. This year the target is 33km/day, although the ministry is targeting nearly 49km/day.

The real estate sector which has been lying low for many years now has bottomed out in most parts of the country & is now looking up. With increased urbanization and the growth of the high-paying IT sector, demand for housing in metros is showing significant improvement and is expected to continue. With new investments coming through the various PLIs announced, this is expected to further grow, adding to the demand for stone aggregates, sand, iron, Steel and cement.

Focus on overburden removal by various Coal India subsidiaries also continues, so that coal production can be increased as and when required. Govt also announced 4 pilot projects for coal gasification and conversion of coal into Chemicals. Coal block auctions continue and a total of 47 mines have been auctioned to date. Coal India Ltd has set a target of 700MT production this year. This will further add to the production of coal. Further, given the extended heat wave in North India and the consequent power crisis, the government has allowed increased import of coal through ports.

All these demand drivers should help in pushing investments in these sectors to revive the CE industry and in turn, the wheel loader market, as a lot of these activities involve material handling. However, timely execution of all these projects is very important to drive growth in the CE industry.

Tell us about the key developments, designs, and trends being witnessed in the wheel loader market in terms of hp/tonnage, and shift towards higher capacity wheel loaders?

To begin with, 3Ton payload wheel loaders comprised greater than 80% of the market in the early part of the last decade. Most of these were used in the mining of iron ore, coal, bauxite, stone quarries, batching plants, ports, etc.

With the increased demand for production as well as time constraints, the 5-Ton payload Wheel loader market has steadily increased over time and now it constitutes around 25% of the market.

Reasons behind the shift include, customers graduating from smaller crushers to medium or big size crushers, mechanization of ports, and higher production demand in the mining sector. Recently, Wheel loaders that can ply on road have moved to CEV-IV emission norms, which has led to an increase in price due to the up-gradation of the engine. To improve customer experience, manufacturers have also upgraded their machines with the latest features like telematics, air conditioner, battery cut-off switch, etc.

On the technology front, Tata Hitachi has chosen between hydrostatic and hydrodynamic Wheel loader according to application requirements and customer needs.

Tata Hitachi TL340H Prime is a 3.4 Ton payload Wheel loader with best-in-class fuel efficiency (Ltrs/cum), makes a good choice for the customers who prefer low running costs. Customers can save up to 5 to 8 lacs per annum. Automatic gearless drive, superior operator comfort (Air conditioner, single lever operation, bucket type seat, etc.), higher safety (Front guard, rearview camera, battery cut off switch, etc.), InSite (Telematics system), and a variety of buckets and attachments make it best choice for customers.

Recently, Tata Hitachi launched its 5-Ton payload wheel loader ZW225 (CEV-IV). This is specially designed for higher productivity and reliability. Tata Hitachi ZW225 is made in India with proven Japanese technology for working globally. It is equipped with features like DSS (Down Shift Switch), Automatic bucket leveler, Auto float, and Bucket kick out. Customers are appreciating these features because it enhances their productivity and working efficiency. 

For the higher class of 7 tons and above Tata Hitachi has ZW310 (7Ton), ZW370 (9Ton), and ZW550 (11Ton) as offering to meet requirements of mining, port, block handling, etc. Customer appreciates fully equipped machine with features like Telematics, Centralized lubrication system, Automatic fire suppression system, Payload monitoring system, ROPS/FOPS Cabin, etc.

With a complete range of wheel loaders, Tata Hitachi provides the right machine for the right applications to match customer needs.

For wheel loader customers, the operational economy plays a major role rather than costly features. How do you look at the after-sales services as a key in this direction?

In terms of after-sales initiatives, we ensure greater proximity to customers through over 250+ touch points covered by our 49 domestic dealers. We continue to invest in after-sales support through our dealers –increasing numbers of outlets so that we are within reach of the customer in the shortest time possible.

In addition to our strong products, we also offer our comprehensive range of support solutions that include Full Maintenance Contracts, Annual Maintenance Contracts and Extended Warranty.

We also-

• have our field diagnostic vehicles for faster reach & immediate on-site resolution
• have mobile workshops that can reach close to customers & carry out repairs in concentrated customer locations
• have a full-fledged Reman center at Kharagpur that keeps supplying refurbished hydraulic equipment & engines at a fraction of the cost of a new part
• can be easily exchanged with old hydraulic aggregates, and engines and carry a warranty – accelerating turnaround times for the customer.
• It also helps strengthen our relationship through the customer life cycle experience.

Further our wheel loader TL340H PRIME comes fitted with InSite (Telematics). This provides real-time status and utilization details. This remote monitoring facility helps customers keep the information about their machines attheir fingertips& helps in intimating likely faults before it goes into a breakdown helping faster resolution.

With this, we are constantly trying to increase profits of our customers through higher availability & improved performance of our wheel loaders

What are the attachments available for wheel loaders? How do you view the potential for this segment?

We usually receive requirements for specialized attachments where demand is fluctuating and varies year by year. Many attachments are available in markets like side-dumpbuckets, dozer blades, forklifts, and snow cutter-blower but very few are OEM-approved. Tata Hitachi provides these attachments distributed across models according to application needs. Tata Hitachi is also working on providing proven and tested attachments across wheel loaders to match the demand and changing customer preferences.  With support from Hitachi, Japan, we have an array of attachment solutions available to us for wheel loaders. However, to make them cost-effective we are also working to make them in India.

How do you look at the future market for wheel loaders? 

The 111L Crs of investment through NIP till FY 2024-25, Bharatmala now likely to be completed by 26-27, Bharatmala-2 in the works, investment in Sagarmala, the continued increase in investments in mining for commodities driven by economic growth, consumption and energy demand all will drive the demand for wheel loaders shortly. The elections and transition to CEV5 norms in FY 2024-25 might act as a temporary speed breaker, but growth is expected to continue thereafter.

In line with the current trends, the market will increasingly transition to higher capacity loaders as explained earlier, although the 3Ton category will still be the largest in the foreseeable future.

In the immediate term, we expect the wheel loader market to grow in double digits in the next two years.

Hits: 10