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The Indian auto industry is one of the largest in the world. The industry
accounts for 7.1 per cent of the country's Gross Domestic Product (GDP).
Commercial vehicle sales, which comprise medium and heavy commercial
vehicles (M&HCVs) and light commercial vehicles (LCVs) in calendar year
2015 grew to 7.37 percent to 650,993 units (2014: 606,255 units). This
growth is mainly thanks to the sterling 30.03 percent growth achieved by
the M&HCV sector, which sold 280,388 units in 2015 (2014: 215,634). The
sector's performance helped reduce the overall impact of the LCV
segment, whose sales fell by 4.72 percent. While good times have still to
arrive for LCV manufacturers, it is important to note that the rate of sales
decline has slowed down substantially. Home-grown players like Tata
Motors (44 % market share currently) and Ashok Leyland (18% market
share currently) have dominated the market for the past decade and
more. The same decade has also seen premium European players like
MAN Truck, Daimler Trucks, Scania and Volvo enter the Indian market.
Mahindra & Mahindra, as a result of its outstanding performance in the
small commercial vehicle and pick-up segment, has become the second
largest player with a market share of 24 percent in the overall CV
segment. During CY2015, the company sold a total of 158,588 units
against 160,042 units in 2014.
Ashok Leyland, which sold 117,751 units in 2015 as compared to 83,834
units in 2014, recorded strong 40 percent growth. During CY15 the
company has registered tremendous double-digit growth in the Medium
and Heavy commercial segment (M&HCV).
VE Commercial vehicle increased its sales by 18 percent, selling 40,411
units. Clearly, the Eicher Pro Series of trucks is given a new fillip to the
company's sales.
Force Motors registered 12 percent growth, selling 22,419 units against
19,990 units in 2014.
While most CV manufacturers saw sales growth in 2015, Piaggio Motors
and AMW Motors saw their sales decline by 21 percent and 55 percent
respectively. They will be looking to re-invent their growth strategy in
2016.
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Looking Ahead
With Q4 of the fiscal year 2015-16 underway, automakers will be looking
to drive gains. However, there are challenges to be faced, even as poor
demand from the agricultural sector has kept growth in check. Indias
Index of Industrial Production (IIP) for November 2015 contracted 3.2
percent compared to 9.8 percent growth in October. Also, the ongoing
diesel ban in the Delhi-NCR region will be dampener on sales, at least till
March 2016.
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Company overview:
Key Facts:
Eicher Trucks and Buses (ETB) is present in the 5T-49T truck segment.
Eicher's 15-65 seater buses have a growing presence in the LD school
bus, staff and route-permit segments. ETB has also made strong
inroads into heavy-duty trucks segment of 16T-49T with their "VE"
series of Fuel Efficient heavy-duty trucks, and the next generation
Eicher Pro Series of heavy Duty Trucks.
Eicher unveiled its entire new range of future generation trucks and
buses at an impressive product reveal function in Pithampur on
December 2, 2013. The all new product range has been named the
"Eicher Pro'' series. Adopting the most professional and holistic
approach to modernise the Indian trucking industry, the new brand
philosophy is to "Go Pro"; that is to give Indian trucking a truly
professional offering which will lead to higher productivity, profitability
and prosperity for the customer. Eicher's new Pro series trucks and
buses promise to deliver best-in-class fuel efficiency, higher loading
capacity, higher superior uptime and overall vehicle life time
profitability.
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The state-of-the-art plant in Pithampur has top line manufacturing
processes which includes cab weld shop with robotic welding, CED
paint shop, integrated testing facilities, 100% hot test facility for
engines and a lean and scalable manufacturing set up. It offers
superior paint finish and deliver quality much superior to what we see
in contemporary trucks in India. The top coat paint finish is superior in
terms of gloss, distinctness of image and corrosion resistance. Even UV
protection will be two times more than the existing paint quality. The
paint shop will have an initial capacity of 72,000 units scalable to
100,000 units per annum.
Volvo Trucks in India is the first truck manufacturer to introduce the
European design, high performance trucks with the latest technologies.
To provide an all-round solution Volvo Trucks in India pioneered the
Driver Training concept in commercial vehicles segment. Today, there
are over 30,000 drivers trained by Volvo, operating Volvo vehicles
across the country for private as well as public transports. When it
comes to maintaining a Volvo Truck as a true Volvo, Genuine Volvo
Parts helps the truck retains its original properties throughout its
lifetime. Complementing the trucks, Volvo Trucks offers a wide range of
Service Agreements to help customers plan the maintenance.
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complete range of gears, and one at Pithampur (Madhya Pradesh)
manufacturing gear boxes. It is continuously developing new products
and upgrading its technology, while increasing operational efficiency,
to make sure that it gets the best products to the market at the most
competitive rates.
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Manufacturing Competence:
Pithampur Plant
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The plant has an annual production capacity of 48,000 units.
As a part of the product development process, the organization has a fully
equipped vehicle and engine development center with fatigue lab,
complete virtual vehicle integration capability, different simulations, in-
house competence for electrics and electronics integration, a complete
bus structure and interior trim design capabilities.
Thane Plant
Dewas Plant
Procurement:
The assembly of the Eicher trucks and buses takes place at the Pithampur plant.
The engine is produced at the Pithampur facility. The required assembly parts are
manufactured at various locations across the country. The whole purpose is to
reduce the inventory size at the assembly plant.
Apart from the plant at Pithampur VECV has manufacturing facilities in Dewas,
Thane, Baggad which produce the various parts of the vehicles assembled at the
Pithampur facility such as differential, gearbox, bus body etc.
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All the parts arrive at the pithampur facility and the vehicle of the desired model
is assembled.
*Abbreviation:
EEC - Eicher Engineering Components
VEPT - VE Power Train
SEZ - Special Economic Zone
HQ - Head Quarter
Operations:
The assembly plant is a continuous flow type process in which the raw
material moves in from one end and the finished good comes out from the
other end. During this process the vehicle keeps on moving.
At VECV they have world class facility.
Most productive plant to produce upto 66,000 trucks scalable to
100,000 trucks.
Cab weld shop with robotic welding and integrated testing facilities
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CED paint shop - best in class e-Rodip German technology with
robotic painting
Highly flexible vehicle assembly lines with right blend of technology
to control critical parameters catering over 800+ variants.
State-of-the-art bus plant spread over 46 acre set up under VECV's
overriding vision of driving modernization of the Indian CV market.
Complex and critical sub-assemblies by robots, ensuring cabin
without leakage and even fit and finish
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All the parts come together to form a cabin.
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The cabin is made using spot welding.
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The paint shop
The paint shop first galvanizes the whole cabin by dipping it into the tank.
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Then the paint job is done on the cabins.
Assembly
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The cabin gets fitted with all the electronic equipment required.
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The vehicle is the sent to the quality check department.
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The finished truck the rolls out of the plant.
Finished Products:
The pro series
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Eicher Trucks are built to deliver low 'Total cost of ownership'. Designed for
superior performance with better fuel economy. Higher rated payload and
faster turnaround these trucks have low operating cost and, high reliability
loading to higher profits.
The VE Series
Eicher Terra series offers enhanced value to customer in areas which are
critical to a tipper operating economics. Better uptime and pulling power,
stronger aggregates, and the ability to run more number of trips. The
range has a significant effect on the operators' productivity and
profitability by offering better fuel economy.
Eicher Trucks and Buses (ETB) have a strong presence in the L/MD
segment with a dominant share in the 5T-12T truck segment. Eichers 21-
69 seated buses have a growing presence in the LD school bus, staff and
route-permit segments. ETB has also made strong inroads into heavy-duty
trucks segment of 16T-40T with their VE series of Fuel Efficient heavy-
duty trucks.
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TRUCKS
HAULAGE
EicherTrucks are built to deliver low Total Cost-of-Ownership. The Either
haulage trucks range includes the E2 Plus series of 5T-13T Light &
Medium Duty Trucks (LMD) tagged as Mileage KaBadshah and VE
Series of Fuel efficient Heavy Duty Trucks (HD) of 16T-31T. Designed for
superior performance with better fuel economy, higher rated payload and
faster turnaround these trucks have low operating cost and, high reliability
leading to higher profits.
TIPPER
Eicher Terra series of 16T & 25T offer enhanced value to customers in
areas which are critical to a tipper operating economics. The USP of Eicher
Tippers is their better uptime and pulling power, stronger aggregates, and
the ability to run more number of trips. Terra tippers offer enhanced
benefits which accrues from the results of extensive research done by the
company in the market understanding of the usage pattern and various
duty cycle of its operation. The range makes a significant and positive
effect on the operators productivity and profitability by offering better
fuel economy.
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ARTICULATED TRACTOR
Eicher 40.40 (Articulated Tractor) from the VE series is built to Deliver
More! Fitted with Cummins Engine of 132.5 Kw, Max Torque of 650 Nm
and the ET-80 gear box, the optimized power and torque benefits come
along with the High Fuel Efficiency, stronger aggregates which offer high
reliability and durability. The soft suspended Cabin offers higher driving
comfort which means faster turnaround and more trips leading to higher
revenues.
Special Applications
AMBULANCE
Eicher Ambulance is a state of art van with all facilities pertaining for an
emergency medical vehicle. Vehicle is equipped with on board equipment
not just for safe and swift transfer of patients but also for providing
emergency medical aid.
CITY BUSES
The latest offering from Eicher - the Rear Engine Semi Low Floor (RESLF)
bus has been developed in line with the guidelines laid down by the
Ministry of Urban Development as applicable to Mass Urban Transportation
needs. This offering has been received with lot of optimism & excitement
by various State Transport Undertakings, City Administrations and
Municipal Bodies across India. Either also offers a wide range of products
in the Mini, Midi and Heavy buses for City Bus Deployment. The products
have been designed to suit the frequent start-stop duty cycle of intra city
operation.
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of the route permit application, which necessitates a frequent start-stop
operation, overload and rugged usage.
BUS CHASSIS
Eichers philosophy has always been to provide a perfect platform for a
perfect bus. In this endeavour Eicher offers a wide range of chassis
suitable for the various applications. Eicher bus chassis consists of an
assembly of all the essential parts like engine, transmission, driveshaft,
differential and suspension, but without the bus body.
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Distribution networks:
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VECV Challenges v/s Edge
Challenges Edge
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Increased need for ergonomic, Frugal approach and inclusive
superior aesthetics in buses innovation with Volvo
collaboration
Modern technologies, features World class state of the art
at mass market prices integrated bus plant
Logistics:
Volvo Eicher currently still moves trucks in the traditional jockey style
that has characterized the truck makers outbound logistics and that of
most others in India since its first vehicle left the factory back in 1985.
However, with a 100,000-unit total in sight, the issues around driver
shortages, quality and protecting the environmental are not likely to
subside. Ever since heavy vehicles were first made in India several
decades ago, normal sales practice has been to put a jockey in the
vehicle chassis (rather than the fully built-up bodies) and command him to
drive, usually in a makeshift seat, to the nearest dealer point and
subsequently to the door steps of the final customer, often covering
several thousand kilometres in doing so. Until recently, such jockeys drove
without even a canopy over their head to protect them or the vehicle from
rain or shine. Today, such cover has become mandatory under Indias
Central Motor Vehicle Rules (CMVR).
Plants : Pithampur, Madhya Pradesh
Production : 70,000 units per year
Depots/RSOs : 27 (regional sales office)
In-plant yards :3
Yard capacity : 500 vehicles (all sizes)
Transporters by region: Railroad Logistics, Pune; Ashok Garage,
Mumbai; Agarwal Packers & Movers, Delhi; All India Transport Agency,
Mumbai; Kamal Transit Lifters, Ahmedabad
Given the countrys complex tax structure, businesses transfer stock to
their own regional sales offices (RSOs) or depots in almost in all state
capitals until the vehicles are sold. This process eliminates the need to
pay taxes at every single interstate border. When an order is placed and
payment received, a vehicle is released from the nearest depot to the
buyer and tax is paid to the relevant state.
In future, VECV admits that truck-on-truck transport is the inevitable
future for Volvo Eicher. The potential for tax reform and the introduction of
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a Goods and Service Tax (GST), which would eliminate taxes at state
borders, is expected to change the distribution model in India to one of
larger distribution centres that would serve multiple states, and which
would likely favour the bulk movement of trucks on transporters. The
company is already in negotiations with a few truck-on-truck operators
that service the likes of Tata and Leyland. Perhaps the biggest argument in
favour of truck-on-truck transport is the benefit of delivering zero-
kilometre vehicles. After all, the customer deserves nothing less than a
factory fresh vehicle. But Dange points out that its rare for any vehicle,
moved by truck or not, to be delivered with zero kilometres. Even trucks
carried on trucks are usually dispatched from manufacturing sites to
depots and from there a jockey drives them down to dealers.
References:
www.vecv.in
http://www.team-bhp.com/forum/commercial-vehicles/145113-
pictorial-eichers-truck-bus-factory-pithampur.html
http://www.eicher.in/AnnualReport2015-16/pdf/VE%20Commerical
%20Vehicles%20Limited.pdf
http://automotivelogistics.media/news/volvo-and-eicher-looking-to-
expand-beyond-india
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