Team CVF spoke with Indian bus industry stalwart, Mr. T. Venkataraman (Senior Vice President Global Bus at Ashok Leyland), on Ashok Leyland’s progress and readiness with respect to the following key trends shaping the Indian bus market:

Stricter Emission Norms

AL: AL is fully prepared for the movement to BS4 from this April, across India. For our Indian Bus Business, the challenge is slightly reduced from the Truck Businesses since we had to anyway have BS4 variants to sell to some of the territories that have been BS4 for a few years now. So, our main job was to deploy cost effective and reliable solutions on the rest of our models and platforms. In addition, for some of the inter-city applications, we now have new solutions for BS4 that further improve the competitiveness of our products, when compared to current solutions in the market from all Indian Bus Makers. Our strong in-house Engine capability, combined with our ability to develop application-specific robust Buses are delivering unique value propositions to our customers across all their requirements. Regarding BS6 from 2020, it is a very major jump in technology, supply chain and after-market support, which are all critical to success in CV industry. We are however well on our way to be there – amply demonstrated by the BS6 tractor truck that we had displayed way back in 2016. We have the internal and supplier strengths to cater to this requirement and are currently studying and evaluating options and issues that will best suit our customers and the national CV industry. As always, Ashok Leyland will never be found wanting on its commitment to the customer, relevant technology, safety and regulation.

Stricter Safety Norms

AL: ABS – Ashok Leyland migrated seamlessly to the ABS regime, with some unique and cost-effective solutions that are not very common even at a global level. We have already been using this for our Buses abroad as well, and it was hence an easy migration for us. Bus Body Code implementation has now been diluted and staggered over two phases – with the initial obligations implemented now purely on dimensional criteria. However, AL has been Body Code compliant in our in-house built Bodies for nearly a year now – and it is not just these dimensional aspects but the full scope of the current version of Body Code. Cutting corners for safety, while it may be OK for small Body Builders, will not be consistent with our ethos here at AL and we took the first opportunity to comply in full. Any Bus Body that is built in our Alwar factory is fully compliant with Body Code and we believe that extra cost incurred is worth it for our customers, passengers and brand value. We hope that the Govt. does not further stagger or dilute the implementation and the same is strictly implemented and enforced as the state levels by the RTO’s.

Emergence of Alternate Fuel

AL: For Buses, AL has been working very closely along with SIAM and the Department of Heavy Industries. The goals and plans of this scheme, along with NEMMP, are commendable and we badly need zero-tail pipe emission vehicles in our cities. Unfortunately, the levels of subsidy that are provided are currently still not sufficient to interest most buyers in general and the cash-starved STU’s in particular. AL and other OEM’s are working closely with DHI through SIAM to draw up alternate plans to solve this issue – and the latest shift in focus of FAME to Public Transport is an excellent step for quantum impact in pollution and energy security. Apart from reworking fiscal aspects, we are also working with DHI and SIAM to prepare the Eco System in the country to improve the awareness as well as viability of EV Buses. With regard to Hybrid Buses, as we are all already aware, AL showcased India’s only Ultra Capacitor solution Heavy Hybrid way back in 2016. This is an innovative but simple solution that best suits Indian traffic and drive cycles and life expectations, with best reductions in pollution and maximum increase in Energy security among Hybrid Buses.

Customer Comfort Demands

AL: We see a major transformation in this sector over the next 3 to 5 years. With improving road networks, marginal growth in railways and increased requirement for mobility, long distance travel using inter-city buses is going to undergo a volume shift as well as with customers expecting more value from the Buses. While many people have the false perception that inter-city travel buses are dominated by foreign players- in reality, Ashok Leyland has a 60% market share in this application- mainly with non-premium buses which are the current trends. However, given the shift towards comfort and longer distance travel, we are releasing, over the next 12 to 36 months, a slew of products in this segment to further increase our market share – with products ranging from Luxury Coaches all the way down to simple, reliable and efficient buses that are based on some of our current Platforms.

OEMs and Suppliers Adopting Advanced Technologies

AL: The entire automotive space in general, and the CV sector in specific is undergoing a paradigm shift in the technologies that are used and put into our products. We should understand that technology is not just limited to what is delivered in the market to customers – but also that which is used inside the company to deliver such products. Thus, if you see our Development activities and Strategy, you will see a lot of simulation, computation, morphing techniques being used not just in design & engineering but actually across various functions including manufacturing and sourcing. Technology is no longer an option – and is no longer limited to just Product Development. The entire Business Model is undergoing change in AL with a series of programs across the functions to ensure that our customers get the right product, with the right levels of customization and as quickly as possible. Having said that, it is heartening to note that our supplier base has also been able to embrace technology at a pace that is required for the Business – and AL is now able to seamlessly and reliably implement good solutions for our customers in the areas of Telematics, materials, processes (including 3D printing) and web/app/cloud based solutions. But, in-order-to stay in the game, the entire industry still has a long way to go while new frontiers like Big Data, Internet of Things and other such tools move from the cusp to the “mature” part of Gartner’s Hype Curve- and we have separate teams directly under Senior Management working on these areas without respite.

Make in India and Export

AL: AL has been in this mode for more than 5 years. We have a plant in UAE that is so integrated that they have their own Engg, Build and Sourcing wings. And this is now being extended to more markets and countries in Africa as well as Asia. We operate this model with customer-partners in the CIS countries as well. Depending on the specific country, market segment and type of bus – as well as the volumes and duty structure – we have distinct strategies for different product-country-volume combinations. We know our costs and the local eco system well – and we hence ensure that maximum value accrues to our end customer while helping augment our shareholder value. AL has ambitious growth plans in the export market and we have hence opened a full-fledged office in Dubai for housing our various teams from various locations and functions. This helps us insulate from the volatility and cyclicality in the Indian truck market and, buses typically being the entry product for each market, they form an important part of our international entry strategy. Starting with full Make in India CBU’s from India, we go to the extent of shipping SKD and other Kits to different countries, depending on the environment and business needs there.