Chennai-based medium and heavy truckmaker, Daimler India Commercial Vehicles (DICV), could enter the small electric truck space which may lead to a development of an all-new vehicle platform.
The battery-powered, less than 3.5-tonne load-carrying segment has caught the interest of major commercial vehicle manufacturers and start-up companies in India. Tata Motors recently launched the electric version of its popular mini truck, Ace, while Ashok Leyland’s subsidiary Switch Mobility is working on an electric light commercial vehicle.
“The below 10 tonnes space is primarily split into two segments. One is the up to 3.5 tonnes and the other is 3.5-9 tonnes. The latter is a smaller segment and definitely not too much of interest to us. But the up to 3.5 tonne is a large segment comprising pick up and small commercial vehicles,” Satyakam Arya, Managing Director and CEO of DICV, told BusinessLine.
Cost-effective solution
Due to their comparatively high operating cost, diesel powertrain will lose out in the long run in this segment and will eventually get converted into electric, said market watchers, given the growing need for cost-effective last mile delivery solutions.
“If we get into the 3.5 tonne segment, it will be (through) electric, because it does not make sense for a new player to enter with diesel. And globally, we don’t operate in that segment and we will not invest in diesel technology there,” Arya added.
Gamechanger
When asked if DICV is planning to enter the small commercial vehicle segment with a new product, Arya said the company has to first evaluate if their offering can become a gamechanger for the segment, based on which it will take a decision.
“At any given time, we are looking at different segments. Do we or can we bring an offering which can be a gamechanger in terms of technology or TCO (total cost of ownership)? If we have a good answer, then definitely, we will invest. We have a platform closer to it, the Canter, which we do in Japan but it is 3.5 tonne and above. If we do it (here), it will be a new platform in Daimler family,” Arya added.
Working in mainly intra-city operations, mini trucks, on an average, run for 50-80 km a day. Electric version of such a vehicle has to run for about 150 km. These will also be priced much higher than their diesel counterparts. Unveiled in early May, the Tata Ace electric can run for a maximum of 154 km. The Mumbai-based company is yet to announce prices of the vehicle.