Looks to continue strong run in current fiscal
The long-haul transport segment has been one of the biggest beneficiaries of the GST implementation. The entire CV industry is moving towards higher tonnage vehicles, a move that augurs well for the tractor-trailer segment and, in turn, for suppliers such as JOST India. The market leader for fifth wheels and other products for the tractor-trailer space has registered excellent growth in FY18 buoyed by positive market sentiments and overall rise in goods movement.
We spoke to Mr. Pradeep GS, Managing Director and VP – Sales & Marketing, JOST India, to know more about his firm’s performance in FY18, plans for the current fiscal and market growth drivers.
Excerpts:
How was FY18 for JOST India? What were the major highlights of your performance during the year?
The year FY17-18 has been very good for us when we posted a growth of 62%. We introduced new variants of fifth wheels and landing gear. Axles and suspensions were very well received where the product performance has been well appreciated. Customers have benefited both from our value propositions and cost of ownership.
What impact did the BS-III ban and GST implementation have on your company and on the CV sector as a whole?
The BS-III ban almost caught everyone in the industry by surprise due to the Supreme Court ruling. Introduction of the BS-IV norms from April’17 and the progressive change to the BS-VI norms by 2020 (skipping BS-V entirely) are some of the only ways forward from the aspect of reduction of toxicity in exhaust gases. While we made the best use of the high volume requirements we only wish we had a little time to respond faster. In the end we did manage to meet all the requirements and are geared up for even higher volumes now.
I have always maintained that introduction of GST would benefit the transport industry specifically due to the elimination of various complicated State-level road taxes for every trip. Under the GST regime there is uniformity in the total cost per trip and is now mostly dependent on the distance and weight. This would definitely go a long way in bringing down the cost over a period of time. From my point, this should help gravitate more transportation requirements towards road and hence higher demand for CVs.
What would you attribute the CV sector’s robust growth to? Please list out the top three growth drivers.
They are tough restrictions on overloading, significant improvement in road infrastructure and rapid urbanization and construction segment growing exponentially.
How do you see the current year unfolding? What do you think would drive growth this year, both for the market and for your company? What are your plans/targets for the year?
The current year holds a lot of promise. We are looking at the tractor-trailer segment growing by at least 5% more than the previous year as I already mentioned due to overload restrictions and fleet owners moving to higher tonnage GVW combinations. The main driver of growth in India is local demand overall in almost all segments which would have a big pull effect on the CV industry. Our plans are focused on consolidating / increasing our volumes in both the tractor and trailer segments. We are rapidly expanding our presence in the aftermarket to service our customers. OEMs are showing interest in our future-ready technologies and we will be in the active phase of discussions with them on the same. With my feet firmly on the ground and all humility, I would like to say JOST has products which India would need even 25 years from now.