BS-VI Transition Experience
ZF India’s products were already BS VI-compliant well before the deadline. Therefore, from a development standpoint we were ahead of the curve and were able to meet customer and market requirements.
Challenges
One of the key challenges during the transition was due to the pandemic and related economic slowdown sales of CVs. The deadline of the transition to BS-VI norms and the peak of the pandemic in India resulted in a double whammy. Dealerships found it difficult to clear off unsold stock and make room for BS-VI compliant vehicles within the stipulated deadlines. A combination of the transition to BS-VI and lockdowns led to steep ramp-up of volumes post July 2020 which created huge challenges in the supply chain. We are seeing this slowly getting streamlined post January this year.
The transition to BS-VI also called for heavy investments from the OEMs with sales slowing down pre-pandemic and then coming to a grinding halt during the pandemic. The financial burden was enough to set businesses back by a few years. This pressure was felt across the supply chain with a lot of SMEs going bankrupt. Today we are seeing an uptick in demand. But we need to be cautious given supply side disruptions that the entire industry is facing.
Opportunities
The transition to BS-VI puts India alongside a select group of economies with Euro VI-compliant fuel standards. Advancement in technology has been a critical inflection point for improving sustainability and safety standards. The shift to BS-VI directly results in improving the intelligence and connectedness of a vehicle. We did witness this shift in ‘over the top’ connected vehicle advancement through telematics solutions. BS-VI vehicles offer better performance and higher peak torque range as compared to BS-IV mechanical engines. This results in better fuel efficiency due to lesser gear shifts, as well as better drivability.
There is increased possibility to offer new advanced electronic features like fuel efficiency switch, LBSC (load-based speed control), VAM (vehicle acceleration management), duty cycle calibration tuning, et al, which further improves the fuel economy. The transition to BS-VI is the first step; the possibilities for value-addition are endless. At the end of the day for a price- sensitive market like India, OEMs also have to consider the initial cost price of the vehicle. A BS-VI vehicle in itself while having a low TCO (total cost of ownership) requires upfront higher investment. We are also seeing the Indian customer becoming more and more receptive to the latest technologies.
Current and Upcoming Financial Year
ZF India is poised to be a leading technology partner to the commercial vehicle industry with the addition of WABCO’s capabilities. The company is playing a pivotal role in the industry’s drive towards a more sustainable, connected and safer future. With a clear focus on reducing CO2 emissions and enhancing safety standards, ZF India is also at the forefront of delivering the next level of vehicle automation and digital connectivity. With the integration of WABCO’s leading advanced driver assistance and fuel-efficiency systems into its existing technology range, ZF India is demonstrating the advantages of a complete and unique product portfolio for trucks, buses and trailer OEMS as well as fleets.
We at ZF are very bullish on the Indian market and are committed towards catering to the needs of our customers here. We can see a sizeable growth ahead of us and a dire need of availing the capabilities of our Indian footprint. We also recently set up a ZF WABCO global research and development centre in Bangalore towards the development of digital fleet management solutions and operations. The facility will develop, test and deploy an increasingly broad portfolio of integrated functions that are aimed at enhancing safety, efficiency and connectivity across the ecosystem of commercial fleet operators.
Technologies currently being developed at the centre include advanced driver behaviour management and fleet operations support, including applications for fuel consumption and tyre pressure monitoring, fleet track and trace, data science and cargo safety and security systems. I think the growth path ahead of ZF India would require us to get all hands-on deck and continue in India with existing capacities and footprints and further enhance that.