Albonair bullish about business prospects post-BS VI introduction
In an exclusive interaction with MOTORINDIA on the sidelines of ECT-2016, Dr. Georg Hüthwohl, Managing Director, Albonair Gmbh, explained in detail the company plans in the post-BS VI days and how it will deal with the challenges arising therefrom.
How far Albonair is successful in India? Are you geared up to meet the introduction of the new emission norms?
We have started supply of complete SCR systems to Ashok Leyland and the results are very encouraging. We expect higher volumes when BS-IV is completely introduced in India. For BS-VI, it will be a very challenging development. The timeline for development is very short and we have to get a complete fleet of customers’ systems reliable into operation. We expect a cost increase in vehicles which will cause a pre-buy. We are gearing up for 2020. Yes, we are ready with the introduction of norms.
What is the percentage of capacity utilisation of your manufacturing facilities?
Currently we are producing a moderate number of units, and with BS-VI, we will move to another location in Chennai which will have a better capacity with state-of-the-art manufacturing facilities.
Are you interested in supplying to other OEMs as well from your existing facility?
We are trying to supply to other OEMs for which discussions are on.
How are you doing financially in India?
We are about to break even in India once we garner higher volumes next year. So it’s a challenging time during introduction (of new products). I really hope that with the BS-VI emission norms, we will meet the timelines better.
So the BS-VI emission norms will give a very good future for Albonair?
Yes, undoubtedly it will give a very good feature for Albonair. I do expect there will be a huge pre-buy of BS-IV vehicles as there will be a cost increase. The volumes in BS-VI will start in the Autumn 2020 and until then we have to ramp up our output.
Tell us about your presence at the global level.
Besides India, the Albonair technology has been well accepted across the world. Globally, we have a marketshare of 25% in Europe. We supply 100% to Renault and Volvo for their medium duty and heavy duty trucks, Volvo Construction Equipment and Liebherr Construction Equipment.
Are you looking at exports from India?
Since India has a low cost production advantage we will be exporting components to different overseas markets.
So you are very optimistic about India once the Euro-VI emission norms are implemented?
Yes, you are right. If you see the value of the aftertreatment systems which is about the same value of the engine, and Albonair will emerge a big player in India soon.