60 tippers operating in Telangana mines
Sinotruk, one of China’s leading heavy-duty truck manufacturers, has made a massive foray into the Indian market. The company bagged a breakthrough order of 60 tippers in October 2014, which are currently operating in the mines in the Telangana region of Andhra Pradesh. The Chinese truck maker displayed one of the 60 trucks at the recent bC India show, making clear its plans of penetrating further into the Indian market in the coming days.
Sinotruk specializes in a range of trucks, including HOWO dump trucks, tractor trailers, cement mixers, tankers and cargo trucks, having found customers across the globe, in regions such as Russia, Angola, Brazil, Argentina, Turkey, Iran, Saudi Arabia, Nigeria and Vietnam, among others. The company has partnered Overland Trucking Pvt. Ltd. to handle its sales and service operations for the Indian market and has had a good start with its first order for 60 vehicles.
Says Mr. Liu Yehui, Representative of South Asia Office, China National Heavy Duty Truck Group Co. Ltd., Sinotruk (Hong Kong) Ltd.: “India is a very big and highly potential market which we have always been trying to enter. We have managed to do so towards the end of 2014 through our partner Overland Trucking. Our first customer in India has been using our trucks for nearly a decade in the African market, and so knows very well about the performance of our vehicles. Our product quality is very good and we just have to spread awareness of our brand among potential customers in the country.”
Well positioned in premium segment
The company, like some of its predecessors, has taken the mining route to penetrate into the Indian market. Having studied the market for the last many years, Sinotruk has positioned itself in the premium segment which is currently dominated by the European players. “We have entered the market with mining tippers and will move to the other segments like haulage trucks in future. We will play in the premium segment with due capacity and performance of our products. But the cost will be lower than the products in this segment, which is one of the main advantages. Our tippers have a larger load-carrying capacity, by up to 20 per cent. So when other tippers in the market carry around 16.5 to 17 cu.m. load, our vehicle can carry close to 22 cu.m. load, and that too with the same fuel efficiency. The product which is currently running in the mines of Telangana is a 380 hp tipper with manual transmission and bogie suspension and is performing to the full satisfaction of the customer”, says Mr. Rajashekar Ailneni, Overland Trucking.
Having made an entry, Sinotruk is looking at a long-term presence in the Indian market. The company expects to muster good volumes in the coming years and is looking to set up a local assembly facility in the medium- to long-term. When asked about the timing of the entry into India, considering that competition is getting stiffer in the country, Mr. Yehui responds: “We feel this is the right time to enter the Indian market. We have global competition in the Chinese market as well, but we have still remained successful over the years. We are confident of getting a good market share in India in the coming years. We are currently importing fully-built vehicles from China, and our next step will be to begin local assembly of our products, which might happen in around two years’ time. We are looking for a good location from where we can provide adequate support to our customers.”
Sinotruk manufactures trucks at its facility at Jinan in China, which is the largest vehicle production unit in the country. Apart from offering robust products for its customers, the company provides very good service support through a wide network, delivering quality and reliable service across different markets.
Understanding the importance for strong service back-up in a market like India, Sinotruk has charted out a clear plan for the region. “We will go step by step in India and are not looking to reach out to the entire market in a hurry. Our partner will take care of the service support, and being locally present, makes it easy for them to stay close with our customers. In the long run, we will be present pan India and will reach that stage gradually”, he concludes.