Mumbai: The Ratan Tata-led Tata Motors plans to invest around Rs 400 crore to develop a new set of fuel- efficient engines for its light commercial vehicles (trucks), which would help increase its sales in overseas markets, a senior company executive said.

“We are developing a new set of fuel-efficient engines (three-litre and five-litre) for light trucks. The investment here is likely to be in the range of Rs 300-400-crore,” a senior company executive told PTI here on strict condition of anonymity.

The new engines are likely to be used on a new vehicle platform for light trucks, he said.

However, he did not give a time-frame by when the company expects to come up with these new engines.

The home-grown auto major is also developing a double- trailer truck on its Prima range of world trucks for overseas markets, he said.

“We are developing a double-trailer truck in the Prima range for overseas markets,” he said, adding the trucks are expected to be ready for sale by the end of next fiscal (FY 11). “The trucks under the Prima platform are likely to be ready for sale by FY 11,” he said. These trucks have the potential to fare well in the international market, he said.

“We understood that there is no good demand for this truck in the domestic market, but we feel there will be a healthy demand for it overseas,” the Tata Motors official said.

The company is now manufacturing engines for its medium- and-heavy commercial vehicles (trucks and buses) at its Jamshedpur facility. Tata Motors has an equal joint venture with US-based Cummins to manufacture engines for commercial vehicles at its Jamshedpur facility.

“The company has also advised to Cummins to revamp engines for (both medium and heavy) trucks,” he said.

This is the first time in Indian automobile history that hybrid buses will be used for public transportation. Coming into force at a time when the city’s cry for logistic assistance is the loudest, the four Hybrid buses of Tata Motors will run in the city during the Commonwealth Games period. Tata Motors will also maintain the buses, as it does for the fleet of Tata low-floor CNG buses running in the city.

Gracing such a strategic move by Tata Motors at the advent of an even greater sporting event, Chief Minister of Delhi, Sheila Dikshit, flagged off the hybrid buses in the presence of ministers, top Government of Delhi officers, senior DTC management, Tata Motors’ Managing Director – India Operations, P.M. Telang, and the President -Commercial Vehicles, R. Pisharody.

On behalf of the very first Indian OEM to ever manufacture a public transportation vehicle of this nature, Mr. Telang said, “The CNG- Electric Hybrid Tata Starbus is a result of Tata Motors’ advances in alternate fuel technologies, including electric vehicles. We are grateful to the Government of Delhi and the DTC for giving us this opportunity of showcasing hybrid buses in the city of Delhi during the Commonwealth Games. We will eagerly look forward to the feedback of the DTC and passengers.”

The Hybrid Tata Starbus has been built for intra-city transportation, and is powered by a parallel hybrid engine comprising of an internal combustion CNG engine and an electric motor using regenerative energy storage system. Offering substantial improvement in fuel economy compared to a conventional bus, this technology leads to lower emissions, thereby contributing to cleaner air and a more environment-friendly commercial passenger transportation application.

The low-floor (floor height: 400 mm) airconditioned bus can seat 32 passengers, and can also accommodate wheel chairs. Pneumatically operated in-swing and out-swing flat doors allow easy entry and exit. Full air suspension and telescopic double-acting shock absorbers provide excellent ride quality, while an energy-efficient HVAC system enhances comfort. With high starting acceleration, and a maximum speed of 70 km per hour, the Hybrid Starbus is an innovative solution for fast and comfortable intra-city passenger movement in an environment-friendly manner.

During the Commonwealth Games, DTC will also operate a fleet of 600 Tata low floor air-conditioned CNG buses for the exclusive use of athletes and delegates. Tata Motors is providing round-the-clock upkeep & maintenance of these buses, with a dedicated team of over 500 engineers, mechanics and other staff at the Millennium Park Depot, specially created for the Commonwealth Games.

For a multinational sporting event shrouded in controversy even before its actual commencement, the Tata Hybrid Starbus appears to be one big step towards giving the CWG “clean” roads, if not a “clean” chit.
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According to sources, the company would bring its light and medium-duty trucks in the sub 5-tonne category to India in the first phase.“Ford has mega plans for Indian commercial vehicle market and the company is already in the last leg of strategising its approach for the Indian market. A formal announcement is expected in the next few months,” a source privy to the company’s plans told FE.

The source said as a part of the company’s strategy to penetrate every segment of the Indian automobile market, Ford India has identified the country’s commercial vehicle space as the next growth driver. “Ford is attempting to be in every segment…after its small car Figo has received a good response they now want to enter newer segments in which they already have an expertise globally,” he added.

When contacted, Ford India’s spokesperson said, “This is pure speculation and there are no such plans. We continue to explore opportunities within passenger vehicle segment to bring products that our consumers desire and want”.

Ford’s plans to enter the commercial vehicle segment got crystallised months after its US-rival GM announced tie-up with China’s top automaker SAIC to produce cars and light commercial vehicles for India.

In fact, GM India has already lined up an investment of $100 million for manufacturing LCVs from its Halol plant in Gujarat. The GM-SAIC LCVs are slated to hit the Indian roads next year.

Yezdi Nagporewalla, head of automotive at KPMG, said, “Any new entrant should initially identify a less crowded segment to make a dent. It’s also a question of the new entrant’s ability to bring global models into India at the right price.” Another analyst who did not wish to be quoted said, “Ford is a key player as far as CV segment is concerned. Now that the Indian market is growing so rapidly it makes commercial sense for Ford to tap this space”.

At present, the country’s light commercial vehicle space is dominated by the likes of Tata Motors and Ashok Leyland. In fact earlier this year the most successful mini-truck of Tata Motors, the Ace crossed total sales of 1 lakh plus units. In June the total LCV sales (including passenger carriers) were 30,116 units.

Auto industry body, the Society of Indian Automobile Manufacturers, has forecast a growth of 26-27% at over 3.17 lakh units for the light commercial vehicle space in India for the current fiscal year. The medium and heavy commercial vehicle space is pegged to grow 10-11% at 2.2 lakh units.

Following the big response of its small car Figo the company has started a second shift of production at Maraimalainagar, near Chennai. The total capacity is in excess of 2 lakh units.

Ronojoy Banerjee
The Financial Express (Web & Print Edition)