JOST has been present in the Indian market for over a decade, offering a full range of components as a preferred supplier for the tractor-trailer segment. With the trailer market witnessing good growth, primarily driven by developments related to the Trailer Code (AIS 113), JOST expects a good year for the industry and is confident of robust growth for its own business too. Mr. Pradeep GS, Managing Director, VP – Sales & Marketing, JOST India, shares interesting insights on the topic.
Excerpts:
2016 review
We posted close 20 per cent topline growth in 2016. Although the second half of the calendar year was very sluggish, we made good progress for the year in products other than our core products – fifth wheel couplings.
Outlook for current year
The trailer market has always been fragmented and spread over the country. We see that the unorganised segment is making huge efforts to comply with the Government and client expectations in regulations. JOST is supporting with our product range.
Impact of Trailer Code and GST
The implementation of AIS 113 has definitely set the cat amongst the pigeons and we should see a beginning of consolidation and improvements in the year. Having said that, to see a change in face of the trailer segment would take a longer time since the enforcement of AIS 113 would depend on the interest of many stake-holders to be taken into account by the authorities. The logistics providers play a very important role during this development as “Cost of Ownership” is vital in planning their fleet. I have always been maintaining that a tractor-trailer combination is much more remunerative if the inter-changeability between the horse (tractor) and the trailer is facilitated. Otherwise this combination is used more as a rigid truck with the ability to carry higher tonnage, and this defeats the very purpose for which it is built. ARAI is working on this at an increased pace and from what I experienced in 2007 they have done a fantastic job in this direction in the recent couple of years. Rome was not built in a day! the intentions are quite genuine from the Ministry of Road Transport and Highways in modifying the CMVR regulations and the authorities are backing them up with regulations to make road safety better.
As far as implementation of GST is concerned, this would definitely bring majority of the trailer manufacturers within the tax net, and needless to say the “One country, One market” benefit can be experienced. The cost of vehicles and freight rates can be competitive across the country which would harmonise the logistics services.
Both the above points considered, Truck OEMs need to give a big push to this segment as well.
Expectations from the Government
To be very honest, the Government of the day has done quite a lot of things. Deterrents for overloading, change in CMVR regulations, the Golden quadrilateral across the length and breadth of the country, and many others. More than saying what is necessary, I would say the wish would be to see the Government build more and better expressways even if it means on a Private-Government model. This would act as a catalyst for faster movement of vehicles. We will then have a consequential effect on the truck engines which will have to be of higher horsepower, and with the interchangeability of tractor and trailer the industry would then get catapulted into the potential it holds.
Major plans for current year
In India, we are driven more by the market requirement in terms of technology. In view of the aforementioned points we need to first see a huge market for tractor trailers in India which is unfortunately only around 15 per cent of the total M&HCV. In developed countries the rigids to tractor-trailer ratio is 90 to 10 which is the other way around in India. We have products which the Indian market would need for the next 10-15 years. Sensorik, Flashtronic, air release and KKS to mention a few in the fifth wheel segment. We are fast expanding our landing gear, kingpins, axles and suspensions portfolio while increasing our market share.
Key factors for company’s success
We have been in India for 10 years and have established ourselves in our overall operations very well over this period. JOST brand image and reliability of our products have been proved to the highest satisfaction of the customer. Customer requirements both in OE and aftermarket would be our primary focus and so we will increase our efforts in after sales and spares availability across the country.
Financial targets
We have a market leading position in our traditional fifth wheel business in the country. We are growing very fast in other products like kingpins, landing gears, axles and suspensions. Our numbers depends on the market which has high volatility. So I would bet on a topline growth of 20 per cent in 2017 over 2016 and a similar figure for 2018 over 2017.