CV industry has been gravitating towards tailored products

Auto industry, including commercial vehicles segment, is going through a difficult phase. Against this backgound, Scania aims to continue expanding its footprint in existing segments in India while looking for possible investment opportunities to diversify in other segments. With the company’s extensive experience in offering transport solutions for the mining industry, it is looking at introducing more such solutions to the market to optimise operations, says Petr Novotny, Managing Director, Scania Commercial Vehicles India Pvt Ltd. The commercial vehicle segment is witnessing trends such as rising demand for tailored products, real-time data (connected vehicles), on-site services and safety. In this interview, Petr Novotny analyses demand trends in CV market and highlights the company’s growth plans for India.

Could you please share with us Scania Commercial Vehicles India growth plans? Which CV segments are you targeting for the growth?

India is an important market for us and we are committed to investing and growing in the country. Taking that forward, we have drawn up a five-year strategic vision and mission document for Scania in India.

Our 2024 strategy has a definite statement that includes our vision & statement: To be a leading contributor to customer profitability by value selling; To be a leader in transport solutions by pioneering the shift in sustainable transport solutions; and To live the Scania way by staying premium throughout.

Our key strategies to achieving the 2024 targets revolve around volume & profitability strategy (expand in existing markets and segments); growth strategy (invest in future markets and new segments) and building a scalable & competent top organisation.

In the next 12 months or so, we want to continue expanding our footprint in existing segments while looking for possible investment opportunities to diversify in other segments. With our extensive experience in offering transportation solutions, we will continue to offer strategic innovations to optimise mining and construction operations. We also look forward to testing the market for haulage segments.

Globally, we have proven expertise in 36 segments across urban, regional, long distance and off road operations and we are well equipped to offer all our knowledge and experience for our Indian customers.

Sustainability is at the core of our business and to deliver on the goals of the Paris Climate Agreement, we are challenging ourselves to cut CO2 emissions by 50 per cent in all of our operations globally by 2025. Scania’s commitment to drive the shift towards sustainable transportation systems stands strong for the Indian market as well.

Our approach to sustainable transport globally and in India rests on three pillars - energy efficiency, alternative fuels, and smart & safe transport - that, individually or combined, accelerate the shift towards a sustainable transport system.

Commercial vehicles segment (and auto industry, in general) is going through a difficult phase. What steps are being taken by Scania Commercial Vehicles to minimise the impact of this slowdown?

While the industry is witnessing a cyclical downturn, we would like to reiterate our commitment to growing the market. Under our stated goals for 2019, we will continue to expand our existing markets while looking to invest in the future. With our extensive experience in offering transport solutions for the mining industry, we are looking at introducing more such solutions to the market to optimise operations.

Ensuring customer profitability is the value that we propose with our solutions. It must be noted that we operate in a niche segment where market environments have limited impact on daily operations. We will continue to study the market and realign our strategy depending on the demand momentum.

Scania believes Indian customers deserve the best of the global technology. We will continue to offer undiluted, best-in-class product and solutions with highest levels of performance, safety and minimised environmental impact to our customers. Our commitment to India is evident by the recent product and warehouse launches and we would like to develop this market with an independent strategy.

We launched the Next Truck Generation, a range of trucks and solutions that come with a higher load-carrying capacity, better uptime, more durable and last but not the least the highest levels of safety & driver comfort. Our central parts warehouse launched in Nagpur takes us closer to our largest distributing partner, L&T, and improves operational efficiency and reduces order-processing time for our customers across India.

BS VI norms will kick in from April 2020. How is Scania Commercial Vehicles gearing up for it?

While the rest of the country is working towards adopting BS VI emissions in less than a year, Scania has been ready since 2011. We have been producing Euro VI in Europe and by using that expertise; we are prepared for BS VI engines in India. With the implementation of BS VI emission norms less than 7 months away, we launched the BS VI compatible new truck range, integrated with an upgraded powertrain, resulting in higher load-carrying capacity, fuel efficiency and uptime. This demonstrates our commitment to the market, as one of the global leaders in technology.

What are the emerging trends in CV industry (CV associated with mining industry) in India? How is Scania Commercial Vehicles planning to tap these trends?

CV industry has been continuously gravitating towards tailored products that are energy efficient, connected, durable and safer thereby assuring the increase in profitability and reduction in costs and operating risks.

We are proactively working on trends such as tailored products, real-time data (connected vehicles), on-site services and safety which are anticipated in the commercial vehicles.

Tailored products: Time has come for smaller, smarter and more efficient solutions that help to eliminate waste and reduce environmental footprint. Whether it’s our in-pit trucks, service vehicles, outbound haulage, crew transport or industrial engines, there’s a need for using tailored products and vehicles in the mining and construction operations. With the technological advances, more powerful, energy-efficient, lighter and durable products will be launched assuring the increase in profitability and reduction in costs and risks.

Real-time data (connected vehicles): With advent of IoT, there is an increasing realisation that the key to operational productivity lies in your ability to transform real-time operational and logistical data into valuable, actionable information which impacts their entire operation. Narrowed margins have forced customers to review their operations and apply principles of lean production to identify waste and problem areas across their site. Connected vehicles and service solutions are being specifically developed to equip customers with real-time logistical data from across your fleet and operations so that the decisions can be made based on facts, not fiction.

On-site services: Increasingly the operators have started to view mine or a construction site as a factory production line. From digging to loading and supply, each operation is being sync with another. Behind the scenes, there is a need to ensure the mining operations are sustained through a holistic network of services; from parts storage to environmental stations, accommodation to kitchen facilities and more. That’s why new technologies are being developed to ensure on-site support is synced with overall mining and construction operations, thus ensuring higher productivity and profitability.

Safety: Apart from the tailored product, connected vehicles and on-site services, safety is gaining major importance in the mining & construction industry. Operators have realised the fact that selecting undiluted best-in-class products, services, and solutions from the safety perspective is key to their long-term success. Regulators and other stakeholders are actively pursuing these developments as well.

To tap these trends and position our self for meeting the future customer requirements, we recently launched New Truck Generation (NTG) heavy tipper and solutions in India. With the strategic introduction of Scania’s world-class range, we reiterate our commitment to the country. We are committed for helping Indian customers achieve higher levels of profitability, safety, efficiency and productivity in their businesses. Heavy tipper offers benefits such as 18 percent higher payload with 23 cu m rock body, up to 5 percent higher uptime, stronger aggregates for longer life, and Swedish crash test certified cabin for enhanced safety.

Along with products we are also focusing on continuously enhancing the service related offerings for future.

With advent of IoT, there is an increasing realisation that the key to operational productivity lies in your ability to transform real-time operational and logistical data into valuable, actionable information which impacts their entire operation.

Operators have realised the fact that selecting undiluted best-in-class products, services, and solutions from the safety perspective is key to their long-term success.