In an exclusive interview with Michele Panuccio, COO (Asia–Pacific and Middle East), ADR Group, Rajesh Rajgor finds out about the brand SAE-SMB’s new axle for car carriers, value-addition in the existing trailer axles and growth prospects for the company in the Indian as well as export market
It was July of 2018, only seven months after inaugurating its first axle production facility at Pirangut in Pune, when SAE-SMB, a 100% subsidiary of ADR Axles, had sold 1,300 road axles for trailers in the Indian market. The company’s initial penetration was just the tip of the iceberg as it aimed to grow 10 times its current sales volume. Cut to 2021 and the SAE-SMB brand is a highly well-known entity in the India trailer space. “It is the emphasis on safety that helped us attract customers and then our quality and innovation sustained the customers. With another plant in Pune, we are capable of pushing sales to reach our goal of selling 2,500 axles per annum,” says Michele Panuccio, COO (Asia–Pacific and Middle East).
“Despite the slow sentiments in 2020, we launched car carrier axles that were compliant with CMVR rules and regulations, and we supplied nearly 100% SOB to our customers in Pune,” he adds. SAE-SMB has introduced new 9-tonne capacity axle which hosts a mechanical drum brake, which is specially designed and developed to meet CMVR rules for transportation of cars. “Since the launch of this axle in January 2020, SAE-SMB is regularly selling axles to our esteemed customer LOHR India who helped us for initial trials and tests at the beginning of the year. After successful trials and tests we have supplied to major fleet owners from car carrier segments across India. We have sold about 1,000 units so far in the India market and look forward to further boost sales in the coming months,” reveals Panuccio.
Designed for India
SAE-SMB’s car and commercial vehicle carrier axles offer numerous benefits to the fleet operators. For starters, the overall length which the company has designed is according to the CMVR regulation and stands at 2,600 mm. “Our design enables the fleet operators to register their vehicles anywhere in India. This design provides more inner space for loading as the operator can load various combinations of cars with bigger widths. Additionally, we have developed a special rim from India’s reputed wheel rim manufacturer and these rims help to achieve more trailer internal width dimensions,” shares Panuccio.
The company that is known to supply applications with disc brakes in Europe is pushing global safety and quality standards in India. “Our car carrier axle boasts of a brake with superior long life brake lining. Also, the axle is designed to ensure that the wheel bolts are fitted within the total length of the axle, thus ensuring safety on roads. The drum is designed inboard which makes it easier to perform maintenance tasks like hub greasing and brake-setting. Most of our customers are happy with the extra tyre life observed in the market,” he asserts.
Notably, the axles work non-stop over a lakh kilometre before there is a need for service or maintenance work. Globally, the ADR brand is committed to provide fast onsite service to all its customers and SAE-SMB has further cemented that trust. “We have offered spare service kits for hub greasing to all customers to ensure easy availability of spares and reduce the downtime. Customers are happy with the service support and zero breakdown that they have experienced. Most of the reputed fleet owners who are providing transportation service for Maruti, Honda, Tata Motors, Mahindra and Mahindra, Hyundai, KIA Motors and Mercedes have started using our car carrier axles. We have received positive response from the manufacturers and end-customers. We are in receipt of long-term orders till FY22. Our spare parts’ dealer network has been appointed and extended across the automotive hubs of Delhi, Gujarat, Maharashtra and Tamil Nadu,” Panuccio informs.
Flexibility and Adaptability
The SAE-SMB brand puts forward the experience gained from different markets to customise products in India. Right from drum brakes, disc brakes to steering axles as well as mechanical, bogie and pneumatic suspensions, the company has innovated quality products as per the market’s needs. Speaking about the current market conditions, Panuccio admits that the pandemic-induced slowdown has impacted the supply chain. “Due to the pandemic we did face some labour and raw material shortages but managed with the inventory on hand. A lot of axle and trailer manufacturers are also facing cash flow liquidity issues and the fuel price increase has further heightened the pain of the fleet operators in India,” he says.
“However, we are optimistic about the much-awaited old vehicle scrappage policy that will certainly be a boost to the commercial vehicle segment. The policy will be helpful for increasing the business for new PV and CV transportation in the future. Being self-reliant and tight on production parameters in tune with the incoming orders has helped us post decent numbers,” he adds. SAE-SMB’s prime target for FY21-22 is to emerge as a ‘numero uno’ player in the India market. The company has already been developing its new production facility and in parallel looking at ways to increase exports.
As Panuccio puts it, “Over the past 10 years the trailer segment situation in India has changed a lot not only in terms of volume on road but with the concentrated efforts of organised manufacturers. The type approvals that become mandatory have seen the induction of ABS with every trailer. And backed by improving infrastructure and roads, the trailers are able to run without any major stoppage across the country in major cities. Our forecast is that the trailer segment in India would have good growth in the coming years and will continue further, which in turn will benefit a reliable quality player like us.” In addition to the car carrier axles, SAE-SMB plans to introduce a wider range of products that are standard in the ADR catalogue but are not yet available in the Indian market. The company has no reservation about acknowledging the fact that their global expertise and number one position in the agricultural tractor trailer segment will give them an advantage in the Indian market. “While ADR Group is well-known for agricultural axles, SAE-SMB is the European market leader in road axles for trailers. Similarly, when ADR Group, the market leader in agricultural products, will bring in the required products to India, we will acquire the knowledge, experience, and product know-how from there. We also have been promoting air suspension as well as other axles and mechanical suspensions and will be launching some specific products for exports. It will certainly be tailor-made for the increased load capacity and in tune with the market demand,” Panuccio concludes.