Strong customer connect, market reach driving growth
Having entered the Indian market over a decade ago, JOST has established itself as one of the most reliable suppliers of fifth wheel couplings and products & systems for the tractor-trailer industry. The company has been an integral part of the evolution of the country’s tractor-trailer segment, playing a crucial role in educating trailer fleet operators about the importance of using safe and reliable fifth wheels and other aggregates used in tractor-trailers over the years.
In the larger scheme of things, the Indian market has a crucial role to play for JOST’s global business, as it contributes significantly to the revenues and growth of JOST Asia. Talking to MOTORINDIA in an exclusive interaction, Mrs. Waltraud Matzenberger, President – Asia, JOST Trading (Shanghai) Co. Ltd., says: “India is a very important market for JOST Asia and we see it as a growing region. JOST India presently contributes around 20% per cent to JOST Asia’s total sales. This figure can go significantly higher as we are expanding our product range on the trailer side which we are focusing on very actively.”
Oozing confidence on JOST’s existing set up in India and the road ahead, Mr. Pradeep GS, Managing Director and VP – Sales & Marketing, JOST India, says: “JOST India, being 13 years into the market, is very strong in its connect with truck OEMs, trailer builders and fleet customers. We have created a very good brand recall and have very strong presence on the OEM (truck) side; our focus is now more intense on the trailer side where we have a range of proven products to offer. While on one side we are building expertise within the region to take care of our local requirement, we also see a lot of synergies in the Far East region as well; we already cater to markets like Indonesia, Thailand, Malaysia and others from China and will look to intensify our efforts further in this direction in future.”
JOST Asia currently accounts for close to one-seventh of JOST’s overall turnover which Mrs. Matzenberger and her team are trying to take up to one-third in the earliest possible time.
Talking about JOST Asia’s major contributing market China, the President shares: “China accounts for nearly 70 per cent of JOST Asia’s sales. There has been a huge increase over the last two years, primarily driven by changing market regulations and new product introductions from our side. On the regulation side, China is moving in the direction of Europe which means we are very well prepared for the market. The end customers also have an advantage because they get reliable & well-tested products with excellent performance.”
Effect of new axle load norms
The most recent and relevant regulation in the Indian market has been the axle load norm change that came into effect during mid-2018. Though the move does not mean great news for the trailer segment, JOST believes it might be a step in the direction of reducing extreme overloading tendencies as far as the overall CV industry is concerned by extending the allowable load legally and putting a cap to enforce penalties on errant operators. However, it is only a matter of time which will unravel whether this step would be beneficial or detrimental to the CV industry.
Mr. Pradeep says: “The road freight rates in India are very low which makes it difficult for transporters to compete with rail transport. The new axle norms will allow transporters to earn more per trip as it legalizes part of the overloading that is so common in our country. In a way, this could be perceived as the first step towards addressing the freight rate problem. With roads getting better, thanks to the proactive efforts of the current government, vehicles having higher horse power engines, turnaround times getting faster, fleet operators are realizing they can make more trips (and hence more money) by carrying rated load and this could bring down overloading which is a very good sign of progress.”
Redefining ‘future-ready’
JOST claims its trailer axle for the Indian market has been designed to take care of Indian loading tendencies which incidentally also addresses the issues that may arise as a consequence of the new axle load norms. This has eliminated the need for it to develop a new axle to meet the revised axle load norms.
As far as the future is concerned, JOST is perhaps one of the most future-ready suppliers in the tractor-trailer space. Mr. Pradeep explains: “JOST’s acquisition of Mercedes-Benz Trailer Axle Systems has given us access to futuristic technology. We have the right products for the present and are equally ready for the future with lighter & more advanced versions of our current range of products. Whenever the Indian market migrates to a new technology, we already have it ready. We probably have a product today that will be needed 25 years from now in India.”
Product range
Apart from fifth wheel couplings, a product category where it is a clear market leader both in India and globally, JOST manufacturers axles, suspensions and other components for trailers locally in India. While its axles and suspensions have close to 75 per cent local content at present, the company is working on increasing the localization levels and optimizing the product design to make them more robust and suited for the rugged and challenging usage conditions in the country.
The company does have a number of products in its global portfolio but plans to introduce them in the Indian market only if it sees a strong demand from customers. Citing an example, he says: “We don’t see any major requirement for air suspensions except for some very specialized applications. Such products cost a lot more compared to the conventional mechanical suspensions which is why their adoption depends on the freight rates.”
Strong reach
Being successful in a vast market like India calls for a strong sales & service network that reaches deep into cities and towns and attends to customer issues in the quickest possible time. Having understood this well, JOST has built a strong network that comprises a well-informed sales team, dealers and service partners who are on the field to reach out and support its customers. The company also has neutral road-side workshops across the country which attend to breakdowns and extend service to customers when the product is out of warranty.