Future of Indian CV industry – Shaping truck transportation towards 2030

Transportation and communication have been the lifelines of any growing economy, with road freight movement by trucking being by far the most common, flexible and effective means. It carries immense responsibility for the commercial vehicle industry to dispense an efficient, reliable, safe truck with elevated technologies to sustain economics of transport business.

Here we reconnoitre how technology progression in trucks propels operational efficiencies impacting transport, logistics & industries stake holders with taking stock of the governmental goals on curbing emissions, vehicle supporting alternative fuels to reduce import bills, ensuring road safety and reduction in accidents.

The Indian CV industry is been now close to 900,000 units as of Y 2018, witnessed about 20% year on year growth, GST implementation, expected vehicle scrapping policies, excessive load clamping is set to bring in additional growth over the next 2-3 years, which are legislative in nature. But the sustainable growth and game changer would be the technology innovations – implementations, communication / electronics interface in trucks, thereby creating the value proposition, enhanced vehicle utilisation levels supporting the legislative reforms.

In today’s scenario trucks and trailers have been portrayed as the face of the logistics sector, wherein stake-holders’ demands witness a seismic shift. For example, the change in ownership models – CAPEX to OPEX, emergence of big fleets, drivers’ outlook for comfort, safety, infotainment facilities to support liveability on the truck which he spends more time than home, involvement of vehicle aggregators linking thru technologies, availability driver’s skill levels to handle technologies, need for connected truck concept and mobility management, including driver monitoring support for service providers and recipients.

Focus areas for future trucking

Fuel efficiency is one of the key parameters in the trucking business, as well as potential targets for the Government in reduce consumption, thereby import bills. Possible outlook expected on Methanol blend fuels, usage of alternate fuels like CNG, hybrid electric vehicles for all long-haul applications and pure electric / hybrid / CNG vehicles for smaller distribution trucks are quite evident.

Vehicle transmission improvements are expected shift to Controlled Variable Transmission (CVT) technology, first to adapt might be the off-road vehicles followed by city applications. OEMs might be keen to evolve concepts with regenerative technologies using retardation forces to benefit, as well as energy transmission from exhaust gases, usage of light weight high tensile steels or alternative materials, aerodynamic concepts to seek fuel mileage improvements.

Road Dynamics / Infrastructure

The Indian roads are still congested, with a lot of potholes, and severely affected during monsoons. The trend will not improve much as the cities keep expanding along with the growth in population in industries and satellite townships. It’s important that trucks are well equipped with good / intelligent suspension technology, to provide ride comfort for drivers and lesser pilferage of the cargo. Another major change likely would be abolition of tolls and change-over to e-toll or in-built systems to charge based on kms driven by the equipment. OEMs will do the detailing to incorporate these inputs.

Connectivity of trucks on the move is going to be a key game-changer for the main fleets, challenge being the skill level of drivers, availability of Internet across the route or other alternative plans. Communication integration to the vehicle, currently being done by third parties other than the truck OEMs, current scenarios best understood on interfacing issues faced. We expect a seamless connectivity and integrated connectivity to have an effective mobility management. These gadgets are also expected to play a vital role in offering support to road safety for road users and avoid eventualities.

Indian transporters have been into a lot of hassles over the years. The capital cost scenario is still not quite convincing, irrespective of the upgrades in technologies. Going forward, the scenario is not going to change, and at best these advanced technologies offering safety and productivity will be acceptable either by force thru legislative changes or by a simplified model which will support them financially. Its more expected to witness a full-fledged leasing model getting in place in the trucking business. There might be a change in the business model which will support the use of these advance equipments to improve efficiency and safety.

Permissible safe axle load change-over on par with international standards is set to get implemented offering 25% increase in GVW of trucks. The question remains at stake is the implementation process, guidelines to regularise axle safe axle load on existing vehicles their impact on demand.

There would be heavy political pressure for curbing emission and switch-over to electric vehicles replacing the conventional IC engines. But, considering the practical scenario, changing infrastructure requirements, e-disposal issues and battery management / technology gaps, it is foreseen that OEMs would be driven towards hybrid vehicles & possible alternate fuels. Electric vehicles can be witnessed in distribution vehicles and buses to an extent.

To summarise, the Indian trucking business, which is set to undergo radical changes where in the technology demands are going to be on the rise, supported by political outlook to ensure road safety and curb pollution levels. The technology levels are expected to get in par with global standards if the trend continues, however more incentives, support and nurturing is expected from the Government to support all new initiatives and changes.

By Rajesh Khanna, CEO, RACE Innovations Pvt. Ltd.