Supply chains will need to turn digital and use technologies that will help make them more resilient. Recently DICV has successfully implemented it in its warehouse modernization project says Rajaram Krishnamurthy, Vice President – Marketing, Sales and Customer Service, Daimler India Commercial Vehicles (DICV).

How do you see Atmanirbhar Bharat to impact your sector?
Following the government’s ‘self-reliant India’ initiative, there has been a strong push on the automotive/ auto component industry to reduce dependency on imports. While it is important to localize auto components manufacturing, it will take a long time to develop alternates that are fit to challenge in cost, quality and capacity. Fortunately, DICV began this process long ago. We already have around 400 suppliers in India and a localisation rate of 80-90 per cent, which we aim to increase even further. 

How will the pandemic catalyse the R&D for the development of future CVs and HCVs for this industry?
The pandemic has catalyzed the industry in many ways, for R&D it will be in-sourcing of R&D activities that will play a major role in the future. DICV has a strong R&D team in India that is always up to the challenge to find ways to tailor existing innovations to fit the need for Indian customers while maintaining quality standards.

As far as commercial vehicles are concerned, a major challenge for electrification of commercial vehicles (>3.5ton GVW) is not technology but ‘market acceptance’ due to the higher cost of acquisition. With adequate support from the government towards bridging this cost barrier via subsidies and other incentives, electric mobility will then be more accessible and more scalable for Indian customers.

What kind of infrastructure upgrade initiatives should the government focus on to ensure the construction sector remains in robust health?
The prospect that the government might invest in infrastructure, including spending on roads to stimulate economies following the Covid-19 crisis, offers equipment suppliers some hope for future demand. As we have a strong portfolio of BharatBenz medium and heavy-duty trucks, we hope to benefit out of the government fiscal package. The demand for commercial vehicles is directly dependent on the economy. Higher activity in construction, real estate, infrastructure, mining and other sectors that generate payload will boost demand for CVs.

What kind of digital roadmap should be designed to help in overcoming operational challenges while also delivering a competitive advantage?
Going forward, supply chains will need to turn digital with more usage of Robotics, Internet of Things (IoT), Artificial Intelligence (AI) and other technologies that will help make them more resilient. DICV understands how important digitalization is for improving efficiency and maintaining a competitive advantage in the long-term. A recent example of this is our 360-degree warehouse modernization project. 

For the last year, we have been modernizing our domestic parts warehouse to provide better efficiency for our production lines and our end customers. Part of this process is the introduction of a digitalized Warehouse Management System that will further improve stock accuracy and traceability while reducing obsolescence by ensuring FIFO/shelf life monitoring. The upgraded WMS will also enable tracking of parts within the warehouse, including predefined storage locations, storage levels and optimization of material flow using advanced put-away and picking techniques.

In terms of digitalisation that our customers can directly see, DICV already has two major showpieces. The first is our complete customer service business that can be managed with a single app. We call this “Proserv” and the customers can do more than 60 transactions on their smartphones. The second is that with BSVI, we have launched Truckconnect and BusConnect, which is a state-of-the-art connectivity platform. This will help our customers to improve the efficiency of their fleets on many fronts. BharatBenz will continue to use digitalization to offer our customers the best value of products for their money.

What are some of the products driving growth for your business in the current economic cycle?
We are seeing a very good acceptance of our BSVI products in the market and a good pipeline of demand in 2020. We are already strongly positioned in the construction and mining segment due to the robustness of our products, and in e-commerce where our products offer the best turnaround time and on-time delivery.

Apart from HCVs, we have also witnessed a decent rise in demand for MCVs and LCVs to help in the transport to warehouses and then from there on to individuals for sale. This is one of the reasons we recently launched India’s First 5228TT on a 4×2 Tractor. The 5228TT model is unique as it provides the benefits of a tractor-trailer but with a decreased total cost of ownership. It has the load bearing capacity of a 6×4 tractor, but with lower fuel consumption. The machine also sets higher benchmarks for the tractor-trailer segment with improved revenue, fuel efficiency, safety and connectivity; just the kind of features our customers want!

What are the financing options and technology support you have made available for your customers?
BharatBenz insurance ensures BharatBenz trucks get the protection they deserve with customised and comprehensive benefits. Our in-house financing captive BharatBenz Financial was set-up to serve both dealers and customers of the Daimler Group. As the only dedicated financier for BharatBenz vehicles, BharatBenz Financial specializes in providing a range of tailored finance and insurance options for all BharatBenz customers. Along with our industry knowledge, this means we can offer some of the most flexible and competitive solutions around.

We also have insurance programs in collaboration with Reliance General Insurance, TATA AIG General Insurance and ICICI Lombard General Insurance. Covers such as ‘depreciation shield’ and ‘additional towing’, apart from the comprehensive motor insurance, are our standard products. We also have a new suite of Power Packs: EMI cover, revenue loss protection, engine cover and vehicle replacement allowance.