Edited excerpts:
Q. You talked about that VECV is investing near INR 1,000 crore in creating new gas applied sciences. Might you share some extra insights by way of what are the important thing know-how choices that VECV sees as extra related in India, and accordingly acceptable investments?
Right this moment, if I take a look at the worldwide state of affairs, and from very insightful dialogue with Volvo group additionally, in all places we see that there is a form of confusion within the sense of what the longer term is wanting like. We’ve got survived as an trade with one know-how for the final 50 years, and that’s the inside combustion engine. And, Diesel, largely Diesel run, and now with some share shifting to CNG. However largely, it has been the diesel and in addition inside combustion engine know-how has been there. However wanting into the longer term, we’ll see EV,(Battery Electrical Automobile), Hydrogen inside combustion engine, or (Hydrogen) gas cell, out of those three know-how choices, which goes to be probably the most related know-how which can which can propel the longer term progress, and in addition result in decarbonisation which each trade is immediately speaking about.
Largely the consensus is popping out that EV will likely be related for the smaller autos, buses for intra-city software, whereas the inter-city lengthy haulage vans will likely be going to the Hydrogen gas cell or the Hydrogen inside combustion engine. Good factor between the Hydrogen inside combustion engine and Hydrogen gas cell is that the gas half — Hydrogen, continues to be the identical for each. There’ve been challenges for the Hydrogen technology, by way of the electrolysis course of. The problem associated to storage and transportation of Hydrogen, and security issues are the identical whether or not you go for the Hydrogen inside combustion engine or Hydrogen gas cell know-how.Q. And in addition the color of the Hydrogen, proper?
The color challenge of the hydrogen you may say can be there. Some distinction might be there that you’ve both hydrogen, gray hydrogen, which is related for the hydrogen inside combustion engine. Gasoline cell would require extra purer hydrogen, inexperienced hydrogen. That’s the one distinction (between H2ICE and Gasoline cell know-how choices). However so far as security, dealing with, storage, what pressuring you must do — 750 bar, that will proceed to be the identical in each choices.
So, going ahead, in one other 4 to 5 years, there will likely be solely two issues to speak about. Both you’ve gotten an EV aspect, or you’ve got the hydrogen-led gas know-how. And, if we discuss international developments, and if I take a look at gamers like Cummins, they’re engaged on all of the applied sciences. If I take a look at competitors, they’re additionally engaged on all know-how choices like Gasoline Cell and Hydrogen Inside Combustion Engine, and so are we.
Q. There’s additionally an engineering course of creating a gas agnostic engine platform. Are you additionally taking a look at related engineering approaches to minimise investments required on this transition section?
I feel everyone is taking an identical method. If I take a look at our engine additionally, within the engine platform, there I am utilizing for diesel, I am utilizing for CNG, and I’m now upgrading that for Hydrogen inside combustion engine.
Largely beneath the cylinder head, all the pieces is nearly widespread in all of the three applied sciences. By altering the cylinder head, you can too convert it to biodiesel, you may convert it to CNG., or you may convert it tomorrow to a Hydrogen inside combustion engine. I feel everyone is getting attracted in the direction of the hydrogen inside combustion engine, as a result of most of them are in a position to make use of the present manufacturing setup in addition to the design and product setup.
Whereas ideally it is higher to have Hydrogen gas cell, however contemplating the associated fee and technological challenges hydrogen ICE is seen because the low hanging fruit and particularly from an rising market perspective. Within the West, OEMs had been centered nearly solely on Hydrogen gas cell know-how. But it surely seems to be like they’re seeing advantage in H2ICE additionally.
If I additionally see within the West, for instance, a participant like Cummins is creating Hydrogen ICE engine know-how not just for India, however they’re working for functions throughout the globe. They see a (international) relevance is there, and that is why they’re engaged on this know-how.
Q. There are two totally different approaches or viewpoints — a Darwinist method of creating and providing a bouquet of applied sciences, and letting market forces select the most suitable choice, whereas the opposite is to focus and make investments solely on a choose set of 1 or two new applied sciences and placing all coverage help and sources to advertise them. Which method do you suppose is extra preferable, and extra sensible for India?
If I feel, as we see, consolidation is occurring throughout the trade. There we see that it’s positively essential that we take a look at fleet house owners’ method and make it possible for these items are properly suited to the transportation sector’s wants.
Q. So that you’re saying that it is higher to supply them a lesser variety of cleaner transportation choices to select from than providing a bigger bouquet which maybe is probably not so conducive for them to have in a fleet.
It is probably not very handy from their perspective. We really feel that we give them one related resolution. That may be extra helpful for our prospects.
We’ve got already invested about 30% (of the almost INR 1000 crore earmarked for various gas applied sciences) and about 70% will come within the subsequent 4 to 5 years. Funding will likely be throughout all applied sciences, all of the three applied sciences.R S Sachdeva, Dy. CEO and Chief Transformation Officer, VECV
Q. Of the almost INR 1,000 crore provisioned for creating new applied sciences at VECV, how a lot of that have you ever already invested, and what number of years would the remainder be invested over? Wouldn’t it be truthful to imagine that of the remainder 70%, nearly all of it is going to be invested for battery electrical and hydrogen applied sciences, or would there be some extra futuristic know-how growth additionally?
We’ve got already invested about 30%, and about 70% will come within the subsequent 4 to 5 years. Funding will likely be throughout all applied sciences, all of the three applied sciences I’ve talked about.
We’re very clear that it (LNG) could be a very related know-how, completely no challenge in any respect, however the one downside is the supply of LNG. If we guarantee the supply (of LNG), positively there’s an working economic system for the fleet operators and positively they’re going to go for them.R S Sachdeva, Dy. CEO and Chief Transformation Officer, VECV
Q. What’s your tackle LNG? With the concentrate on rising a fuel based mostly economic system, does LNG have possibly higher prospects than CNG?
For LNG, the principle vital factor is the provision chain, the supply of LNG. That is the most important challenge being confronted immediately. And, it’s depending on imports. As soon as this facet is taken care of, then persons are very very eager. Even we’ve got handed over 20 LNG autos to Volvo Vans. So, we’re very clear that it may be a really related know-how, completely no challenge in any respect, however the one downside is the supply of LNG. If we guarantee the supply (of LNG), positively there’s an working economic system for the fleet operators and positively they’re going to go for them.
Q. If this a part of distribution is taken care of, LNG will likely be a greater resolution than CNG, contemplating that LNG vans even have a considerably longer driving vary in a tankful, in comparison with CNG vans.
It is going to positively be a greater resolution, since you’re capable of carry a better amount of gas on the automobile, which isn’t potential in CNG. As a result of in CNG you are carrying the fuel with 260 bar stress, and also you’re capable of carry possibly one-third of the fuel which you can carry within the liquid type of LNG. In order that approach for lengthy vary trucking LNG turns into a significantly better possibility.
In LNG, it’s carried in -160 diploma centigrade within the cryogenic tank. So as soon as within the liquid kind, you are capable of carry a lot greater amount on the automobile and a single cylinder can take the heavy responsibility automobile nearly 700 kilometres, which is probably not potential in a CNG truck with even 5 – 6 cylinders as a result of it is within the gaseous kind.
As you put together for a severe play within the EV area, is there any space/s the place Eicher is leaning on Volvo for the journey?
The great factor with the three way partnership is that Volvo helps on all know-how concepts. No matter know-how is related for India, that is related for us. We really feel very lucky from that perspective.
Q. Are you able to share any instance or anecdote concerning Eicher’s contribution by way of frugal engineering or ingenuity which Volvo might have adopted for international markets.
There are lots of examples. Most of the ideas, like engine idea which they’ve adopted within the international kind. And lots of different areas like lightweighting, and different areas the place the reverse innovation additionally has occurred. Tough to pinpoint precise examples, however I can let you know the chassis system, the powertrain system, a number of the areas the place they’ve carried ahead the idea from right here.
In superior nations, we see that nearly 60%-70% of the truck market are tractor-trailers. In India additionally, I see a motion from 20-25% to 60% within the subsequent 5 years.R S Sachdeva, Dy. CEO and Chief Transformation Officer, VECV
Q. As an trade veteran, what main adjustments do you see occurring within the Indian industrial automobile trade a number of years down the road?
A number of focus immediately is on decarbonisation. Now, decarbonisation is coming by way of the alternate fuels, and second is coming by way of the upgradation of the emission norms, like Euro seven coming into India. So, these are the 2 areas that are distinguished there. And, secondly, there is a excessive concentrate on driver consolation. All vans, from a sure class, will likely be air-conditioned from subsequent 12 months. That’ll contribute considerably to the motive force’s consolation.
One other space is the higher journey, suspension. After which there’s using the superior driver help methods (ADAS). We’re utilizing ADAS methods like emergency braking, entrance collision warning, driver state monitoring, so a number of options are coming that are serving to the vans get upgraded. Going ahead we see that autos will emit much less, and they are going to be far more snug.
Subsequent, on the segmentation aspect, autos are getting an increasing number of segmented. As GST has now proliferated, additionally resulting in the expansion of the Hub and Spoke association. Really we’re seeing that factor occurring — larger automobile motion between hub to hub, and the hub to spoke in smaller autos. And, in hub to hub, we’re witnessing a rising pattern of the tractor trailer’s share within the general heavy responsibility truck trade over the previous three years. Its share has already come to 30-35%. One-third of the autos immediately are tractor-trailers. which was 20% about three years in the past.
So these are the most important adjustments I see occurring — decrease emission by way of various gas applied sciences, and thru upgradation of the present emission norms, safer and cozy driving situations for the motive force. And third, is the motion towards the tractor trailers. In superior nations, we see that nearly 60%-70% of the truck market are tractor-trailers. In India additionally, I see a motion from 20-25% to 60% within the subsequent 5 years. So, that is the journey.
Q. And the opposite pattern, which is occurring within the automotive trade is the softwarisation. Have you ever additionally invested in establishing your software program know-how growth groups?
Already steps are there in that course. VECV has tied up with iTriangle (a transportation telematics firm), for a three way partnership for related and software program companies. And, we’ve got bought a really robust group within the software program aspect, within the areas of car dynamics, emissions, and companies.
