“The SCV range forms a critical chain in the hub-and-spoke based transportation model. It is critical to ensure last-mile connectivity in our ecosystem, and hence the future looks bright for these vehicles”, says Mr. Nitin Seth, President – LCV, Ashok Leyland.
An exclusive interview with the man in-charge of SCVs and LCVs at Ashok Leyland provides detailed introduction about the company plans for the present and future.
Excerpts:
The SCV segment is posting an impressive growth in the last 5 years. How has your experience been in this regard?
Our experience in the SCV business has been fantastic. Factors like GST, along with the growth in the e-commerce segment, have helped our SCV business to grow in recent times. We have been growing faster than the industry, posting 31 per cent growth in FY 2018 and 24 per cent in FY 2019, surpassing the industry average of 23 per cent and 9.5 per cent respectively.
Moreover, we continue to deliver best-in-industry SSI/CSI, lowest defect products, best-in-class warranty and service retention. We have increased our overall reach with more than 550 exclusive outlets as on date.
What about your SCV product range? Any new products on the anvil?
We have a range of offerings in the SCV space today – both Chassis and fully-built solutions. This includes Dost LiTE, Dost Strong, Dost Plus and Dost CNG. On the fully-built front, we play a major role in the Swachh Bharat mission through our popular Dost Tipper which helps in door-to-door collection of municipal waste. Some of the other fully-built solutions include refrigerated containers, sky lifts, fuel tankers, etc.
We are also working on a new SCV platform to augment this space. This will help us cater to all customer segments in the 2 to 3.5 ton GVW. We have invested close to Rs. 400 crores for development of the new platform, which will be launched along with the introduction of BS-VI.
Further, we have enhanced our LCV Partner truck and MiTR bus range. We have launched the Partner 17ft variant truck and MiTR AC buses for the domestic market and Partner LHD for export markets. Together with the brand’s SCV range, the total LCV sales were 43,441 units and 54,508 units in FY 2018 and FY 2019 respectively.
What is your take on electrification of SCVs (passenger & cargo) for last-mile connectivity? How prepared are you for the same?
Given that the SCV ply in a smaller radius range, we believe that electrification of the same is around the corner. Our existing offering Dost will soon see the launch of an EV version. The new platform that we are currently developing will also have an EV variant.
What, according to you, are the megatrends that shape the SCVs in India?
The biggest trend that we are witnessing is driven by GST implementation which has led to intensification of the hub and spoke model. Demand for higher tonnage trucks at one end and SCVs and LCVs at the other is increasing. SCVs, being small and agile, will play a crucial role in last-mile delivery and connectivity. The other mega trend that we are witnessing is the customer demand for end-to-end solutions like fully-built vehicles, telematics, additional warranty, annual maintenance contracts, assured buy backs, and so on.