Make debut at IAA CV fair in Hanover
TVS Group companies Wheels India and Brakes India signalled their intentions of making it big in the global arena by debuting at the IAA Commercial Vehicles 2018 trade fair in Hanover, Germany, held in September. The companies, both market leaders in India, showcased their range of products and solutions through a nicely-designed joint pavilion, with an eye on adding more global players to their existing customer list.
Exploring opportunities
Mr. Srivats Ram, Managing Director, Wheels India, said: “It’s our first presence at IAA and I think to build a brand in Europe, we need to be consistently present at such shows; people keep seeing your brand over a period of time which helps build confidence and increases the acceptability of your product.”
While connecting with the truck and bus OEMs was one of Wheels India’s primary focus areas, the supplier also had other interesting aspects as part of its agenda for the show. “While most of the vehicle manufacturers are known to us, there are probably a few hundred trailer manufacturers who have displayed their products here. We get access to these people and that’s how new business is generated. We also get to see our competitors’ offerings and the new technology which are emerging in the European market and see if something similar can be used in India”, revealed Mr. Ram.
As Wheels India tried to explore new business opportunities from trailer manufacturers, it was interesting to note that its wheels were fitted on around five to six trailers that were displayed at the fair.
When asked about the company’s strategy to try and make in-roads into mature markets like Europe, the MD replied: “When we approach a European customer, we are examined very closely since we are an Indian manufacturer, so we have to be really good in quality. We are currently looking at matching the specifications of European manufacturers following which we will look to better our offerings further because only then we would be able to approach customers for new business. Everyone is looking for products that improve fuel efficiency and reduce weight, so we are looking at making design and process changes that would give us an advantage in these aspects.”
In the construction, mining and agricultural segments, Wheels India has established strong presence in global markets, shipping products to around 15 to 20 per cent of global geographies. In CVs, the company has been largely focused on the Indian market and has recently started some exports to customers in Asia-Pacific and Europe. In addition to its focus on the European region, where it already has a distributor, it is also eyeing business from other overseas markets.
Time to expand
On the Brakes India side of the pavilion, Mr. Sriram Viji, Deputy Managing Director, Brakes India, shared: “IAA is a good place for OEMs to benchmark technologies from different suppliers. The OEMs whom we don’t get to see in India too often come with their full team here which gives us an opportunity to connect with them. In India, we have been working with European OEMs since 2006 and Japanese OEMs since 2010, so there is a natural pull to see what else we can offer them. We have come to this show to see how we can widen our product portfolio and also show our existing customers that we are here to support them.”
Despite having a long legacy in the Indian market, this is the very first time, both these TVS Group companies are participating in the world’s largest commercial vehicle fair. Mr. Viji believes there is a clear reason for the timing, with a number of factors paving the way for Indian suppliers to become more active globally. He explained: “There are a number of things that are changing in India. Firstly, in terms of scale, India is at a level where local suppliers can afford to go global. Second, vehicles in India are getting similar to vehicles around the world, so the products we develop for local vehicles are applicable for vehicles globally. Many of the technologies we offer in India are now suitable for other markets as well. In addition, vehicle tonnages have gone up and are almost on par with most other countries and with infrastructure improving, the duty cycles are becoming similar to more mature markets.”
Responding to a query on Indian suppliers’ capability to serve OEMs in mature markets like Europe, the Deputy MD said: “We have had many MNC OEMs set up facilities in India, so in terms of quality systems and product specifications, suppliers like us are aware of the expectations in other parts of the world. It’s not really tough for Indian suppliers to meet global requirements; as long as a supplier has been working with a variety of multinational OEMs in India, there would not be any struggle to meet the systems requirements.”