OPTARE Plc <> ASHOK LEYLAND ENTERED IN SMALL BUS SEGMENT

Optare Plc, a UK-based bus manufacturer in which Ashok Leyland Ltd. holds a 75% stake, will exit the small luxury coach segment and enter the small bus segment this year.

Optare’s first small bus, Bonito, which can accommodate as many as 16 passengers, will start selling in the UK in June, and may be exported to other European markets later, the company said in a statement.

“We have been looking at a number of routes to enter the important small bus/accessible vehicle market and are convinced that the fully developed Bonito is the right answer,” Glenn Saint, Optare’s chief operating officer, said in the statement on the company’s website.

Simultaneously, Optare is looking to hive off its Mercedes-based small luxury coach brands, the Soroco and Toro, which have been manufactured for it by Spanish coachbuilder Ferqui, S.L.

“I am pleased to say that we are in negotiations with a number of parties which may lead to the two current models, the Soroco and Toro, continuing to be available in the UK, though outside the Optare brand,” Saint said.

The moves are part of a comprehensive product portfolio review, Saint said. The company came into Ashok Leyland’s fold in January when India’s second-largest commercial vehicle maker took control of Optare in return for helping generate working capital for the cash-strapped British bus-maker. Ashok Leyland already had a 26% stake in Optare, acquired in 2010.

The flagship company of the Hinduja Group, which hopes to enter the ranks of the top five bus manufacturers globally with the help of the Optare stake purchase, introduced an Optare-manufactured low-floor bus, the Solo SR, for the Indian market at the Delhi Auto Expo in January.

AMW eyes 5-fold growth in truck sales in 3-4 years

Commercial vehicle maker Asia MotorWorks (AMW) aims to grow its truck sales five-fold to

50,000 units per annum in next 3-4 years. The Gujarat-based company is getting ready to sell trucks in overseas markets such as Africa and West Asia by March next year. The firm also plans to debut in the luxury bus segment by the year-end to take on Volvo and Tata Motors.

“We are now getting lot of sales traction with the acceptance of our products and their value propositions becoming fairly demonstrative. We are hoping that we will continue to grow 50 to 60 per cent every year to notch sales of 50,000 trucks per annum. It would take three to four years to do so,” Anirudh Bhuwalka, MD and CEO, Asia MotorWorks told Financial Chronicle.

AMW, currently the third largest player in heavy trucks segment, aims to sell 10,000 trucks in 2011-12, Bhuwalka added. This would represent a growth of over 65 per cent compared with about 6,700 trucks sold last year. The sales boost came from 14 new truck models launched by the company last financial year mainly in 16 to 25 tonne mass truck segment.

Largely the top two players — Tata Motors and Ashok Leyland dominate the Indian truck market with a combined market share of over 70 per cent. Annually, 250,000 units are sold by all players, according to Bhuwalka. AMW that came into operation in 2005 backed by Shashi Ruia promoted-Essar Group, has sold 25,000 trucks since inception. The firm, currently, has a market share of five per cent in the heavy commercial vehicles segment.

“Indian truck market is the only market in the world with two players dominating. Globally, there is space for four to five companies in every market. We feel that there is room for more players here,” Bhuwalka said. The firm is also looking to export its models that it claims are built in accordance with global standards.

“We will look to export our trucks to African and the Middle Eastern markets at the end of the next financial year,” Bhuwalka added. The company is also preparing to enter luxury buses with its ‘luxury liner’ range of buses by 2012-end positioned between competitors Tata Motors and Volvo buses in the Rs 66 to 80 lakh price range.

PRESSURE FOR RETAIL DEALERS COZ A.L STILE & PARTNER(LCV) ENTERED IN MARKET

• Dost LCV to be joined by a STILE, Multi-Functional Vehicle and PARTNER, a 6-tonne LCV

Two new-generation LCV platforms from Ashok Leyland were revealed today at the Auto Expo. The Multi-Functional Ashok Leyland STILE and the contemporary 6-tonne LCV Ashok Leyland PARTNER represent very different faces of the LCV spectrum. Following on the heels of the Ashok Leyland DOST, which has seen very strong response in the market, these new products will allow the Company, over the coming years, to address a very wide range of customer needs and applications.

STILE, is a modern Multi-Functional Vehicle (MFV) and will usher in a new class of vehicles for the Indian customer. It has been specially developed to address various applications like people carriers in the urban and rural areas, hotel shuttles, taxi services, ambulances, panel vans, courier services, inter-city and intra-city travel.

STILE sports a classy, sophisticated look with its sleek contours and structured edges. The monocoque body construction makes for a lower kerb weight contributing to its fuel efficiency, while for passengers, it translates into greater safety and excellent ride quality. The interiors wear a pleasing look with dual-tone treatment and superior ergonomics.  The low floor feature makes for easy entry and exit, while sliding doors on both sides allow for easy access in tight parking spaces. STILE will be available in both CNG and Diesel versions, with a wide choice of seating options of 2 and 3 rows.

PARTNER is the new 6-tonne LCV platform that was launched globally by Nissan Motor Company very recently, which has helped them gained precious market share in several global markets. The cab has a modern Euro-look, is spacious with advanced ergonomics, power steering and air-conditioning while a well-appointed interior has ample room for occupants and their belongings. The cab is also tiltable for easy serviceability. PARTNER is powered by a contemporary 120 hp ZD30-DDTI Common Rail Diesel (BS 4-complaint) engine that gives the vehicle excellent pick-up and good gradeability for faster turnaround. On display is a Refrigerated Truck which represents one of the application variants, some of the others being steel and aluminium containers and tippers.

The company has seen solid bookings for the recently launched Ashok Leyland DOST. To keep up the momentum in the small LCV segment, the company also showed its new DOST-CNG variant. This product will also enter the market shortly, catering to those markets where CNG is preferred or mandated.
“Right from the outset, we were determined not to remain a one product/platform or niche player in the LCV space. We are delighted to present two brand-new concepts on our two new-generation platforms that have been developed, close on the heels of the launch of our DOST platform,” said Dr. V. Sumantran, Non-Executive Vice Chairman, Ashok Leyland and Chairman, Nissan Ashok Leyland Powertrain Ltd. “Both these new vehicles maintain our focus on offering Japanese technology and quality at Indian cost. Together with the addition of the DOST-CNG, expected to be launched in 2012, we hope to cater to a wide range of needs, and at the same time, address the growing expectations of the Indian consumer. ” he added.

The STILE and PARTNER platforms are scheduled for launch in mid of calendar year 2013. The Dost-CNG will reach the market in 2012.

Ashok Leyland Jan Bus (Public)

Low floor buses invariably meant integral construction and a rear engine not to mention a big cost outlay. Not any longer if one has to go by Ashok Leyland's novel approach with its Jan bus...

There is something about the 'can do' spirit which has been imbibed by many of our Indian OEMs as they grapple with the onerous task of delivering worthwhile solutions to mobility while forsaking outright tech for smart thought. Much that very essence pervades the very concept of the Jan Bus (Jan as in janata, public) that has surprisingly come from the uber staid and not to mention, ultra conservative Ashok Leyland.

This is certainly a good time for one of the country's pioneer commercial vehicle manufacturers to stand up and not just be counted but also spearhead thought and energy into a direction, which can only benefit mass transit public movement.


The Jan Bus is, according to Dr V Sumantran of Ashok Leyland, the world's first front engine, single step entry fully flat low floor bus and that is something that somehow has never entered the mind set of the big MNC CV specialists.

Today urban mass transit systems need easy ingress and egress, also an unhindered approach to get to seats or to standing positions without fuss or bother and all of this means an integral-type coach construction and an ultra low floor (sometimes almost to kerb or footpath height, with or without height levelling suspension). To get that ultra low floor inevitably means a move to a rear engine, rear-wheel drive configuration which as has been noted seems to be the way the western world has gone about doing city buses.

However, Ashok Leyland would beg to differ. Using a bit of Indian ingenuity, the engineers at this venerable CV giant have come up with a most striking solution which is cost-effective to boot yet strong and familiar enough for most of our public transport utilities to take to. The basic concept revolves around a front engine layout with clever packaging that gives the bus a complete flat floor beginning from the driver's office and moving right to the end of the vehicle. Of course there is a slight rounded bump on the floor where the large axle sits but one can make out the gradual slope to shroud that as well in a simple yet intelligent manner

AMW launches new 1618 TP Tipper at EXCON, Bangalore

Asia Motor Works (AMW) launched its new 1618 TP Tipper model at the EXCON exhibition in Bangalore on November 24. This important new model marks AMW's entry into the competitive 16 ton segment of the Indian commercial vehicle market

Ashok Leyland presents India’s first 37-tonne haulage truck With a payload capacity of up to 27 Tonnes, the U-3723 H is also India’s most efficient truck

Ashok Leyland, the Hinduja Group flagship, today introduced India’s first 37-tonne haulage truck with the highest payload of up to 27  tonnes. Built on the contemporary and future-ready U-Truck platform, the U-3723 H guarantees superior performance, durability and best-in-class operational efficiency.
One outstanding feature of the U-3723 H is its five axles - twin steerable front axles, two rear axles and a self-steerable pusher lift axle at the middle that enables the vehicle to carry more loads, far more efficiently.

The auto-lift axle senses when the vehicle is running in an unloaded condition and will automatically lift the axle which translates into additional fuel saving. Engineered to deliver a faster turnaround and better gradeability, the U-3723 H is equipped with the fuel-efficient 225 HP ‘H’ Series engine and a 9-speed gearbox. Further, the 10x4 configuration makes for excellent maneuverability even in arduous operating conditions.

At the launch, Mr Vinod K Dasari, Managing Director, Ashok Leyland, said, “The U-3723 H is truly the most efficient truck in the country and carefully engineered to meet certain specific customer requirements.

With a more stringent implementation of rated payload on one hand and the availability of higher loads on the other, customers have been increasingly seeking higher capacity rigid trucks that can carry more loads translating into better operational economics. Market trends are clearly skewed towards the 31+Tonne category and thus our U-3723 H is perfectly positioned to meet the demands for higher payload capacity, faster turnaround time and better maneuverability.”   

The feature-rich sleeper cab is designed to address driver comfort and safety especially during long distance freight operations. Other features include an optional AC and parabolic suspensions with shock absorbers.
Fuel efficiency is further enhanced by the aero-dynamic cab and lower unladen weight. An optimized drive train and 11R20 tyres deliver improved driveability and effortless maneuverability. The deep section frames with bogie suspensions ensure better vehicle stability even at higher loads. A long loading span of 31 feet can easily take loads of any density and dimension. Strong aggregates, a robust chassis frame and suspensions reduce down-time considerably.

The U-3723 H is best-suited for such applications like construction, Ready Mix Concrete, boom pumps and stone marble.

Mahindra Navistar to see cash break-even in a year

Mumbai: A year after launching heavy-duty trucks to compete with Tata Motors Ltd and Ashok Leyland Ltd, India’s top truck makers, Mahindra Navistar Automotives Ltd expects sales to pay for expenses shortly.

Mahindra Navistar, a 51:49 venture between auto maker Mahindra and Mahindra Ltd (M&M) and truck and engine manufacturer Navistar Inc., sells tractor trailers and tippers ranging between 16 tonnes and 31 tonnes to the construction sector, and heavy-duty lorries to ferry automobiles and consumer goods.

“We shall be able to (see) cash break-even in the next 12 months,” Pawan Goenka, president, automotive and farm equipment sector, Mahindra and Mahindra, told reporters at a press meet.

Pawan Goenka

The joint venture has sold 2,500 trucks, according to Nalin Mehta, managing director, Mahindra Navistar. The firm’s factory at Chakan near Pune in Maharashtra has a capacity to produce 50,000 trucks a year. It currently sells about 300 trucks a month.


India’s medium- and heavy-duty goods commercial vehicles segment grew 8.19% to 187,559 units in the April-October period compared with a year ago, according to the Society of Indian Automobile Manufacturers.

With Daimler India Commercial Vehicles’ Bharat Benz trucks set to enter the market in six months and Beiqi Foton Motor Co. Ltd’s vehicles to be launched in the next couple of years, competition in heavy trucks is expected to intensify.

Mahindra Navistar plans to launch at least two new models—a 49-tonne tractor trailer and a 25-tonne tipper for the mining sector in the second half of the 2012 fiscal year.

Along with a few more variants, these will help the company ramp up volumes and use its factory capacity fully in the next three years, Mehta said.
To be sure, transporters, particularly small operators, are sceptical of new brands in the country.
Deepak Sachdeva, proprietor of New Delhi-based Sachdeva Roadlines Pvt. Ltd that has a fleet of 80 Tata and Ashok Leyland trucks, is wary of the maintenance costs of new brands.

“Even Ashok Leyland and Eicher Motors Ltd, which have been in the market for several years, have very few mechanics in the north,” said Sachdeva.
“There’s no doubt that it’s (Mahindra) a strong brand,” said Ajay Shethiya, an analyst at Centrum Broking Pvt. Ltd. “But it’s a long haul for them before they can dent the market shares of the entrenched firms.”

Mahindra executives are aware of the challenge. Goenka conceded that Mahindra Navistar has taken longer than was expected to increase sales. “They (transporters) trust the brand, but building confidence takes time,” he said.

This, to some extent, delayed the company’s plans to introduce heavy-duty buses and trucks in export markets, Goenka said. Since the firm has established a national reach now, it will focus on the bus, currently under development, and on exporting trucks to South Africa using Navistar’s network.

Mahindra Navistar, which launched its products in October 2010, has set up 50 dealerships and 950 service stations. It plans to double the number of dealerships and increase service stations to 1,200 in 12 months.

“We aspire to do to the commercial vehicles market what Maruti Udyog Ltd did to the passenger car market in the 1980s by ending the monopoly of Hindustan Motors Ltd’s Ambassador,” Mehta said

SCANIA TO SET UP MFG. PLANT IN BANGALORE

Scania Commercial Vehicles India will be setting up a new plant in the Narasapura industrial area in Bangalore. The company will be investing Rs 2.25 billion in this unit over the next five years with Rs 1.50 billion being invested in the coming year. The first truck will be rolling out by 2013. Initially, the plant will assemble bus and trucks as a CKD. At a later point, Scania also plans to include coach building and service workshops to this facility. Within the next five years, the company plans to roll out 2000 heavy haulage trucks and 1000 inter-city coaches and buses from its plant