When the going gets tough, where do transporters go? Economic slowdown, rising diesel costs and high interest rates in the last few years have meant a bumpy ride for those in the road transport services. But their equipment and service providers lead the way in technology and innovation to deliver value to the transporters and helped them on the road to recovery.
Reducing downtime Take the case of lube oil that is used in heavy commercial vehicles. The simple but important product has seen a lot of advancement. In the past, engine oil needed to be replaced after every 10,000 km of operation, as the oil lost its physicochemical and performance properties. Thanks to research, this has improved to 20,000 km and later to 40,000 km.
Indian Oil Corporation (IOC) has taken this further and has introduced a high-performance lubricant in its Servo ALT brand that keeps the engine going for 80,000 km.
Extending the drain interval saves the vehicle owners maintenance downtime. Additionally, the improved lubricant reduces deposit formation and engine wear and tear. These have increased the overall life and reliability of the engine and postponed the need for vehicle replacement. IOCL says that the oil also reduces soot generation.
Equipment-makers for their part are also stepping up innovation to save costs for vehicle owners. Ashok Leyland, for instance, has launched game-changing products such as the 3718 five-axle truck amidst the slowdown. The truck could haul more weight for the same operating cost, helping freight service providers earn better profits-per-kilometre. The company’s products such as BOSS and Captain are designed to enhance driver productivity, which, in turn, improves vehicle utilisation and profits. Ashok Leyland says it focuses on improving product reliability and service intervals to reduce downtime and associated revenue loss suffered by its customers.
Service push Suppliers are also driving changes in their service offerings to transporters. IOC, for instance, has been adding a number of quick service stations along the highway where drivers can check their trucks and get quick fixes done.
Ashok Leyland has launched service innovations such as 24x7, Leyland Direct, 70-km Reach, Service at Door-step, Express Service Bay, and cashless insurance for its end users. The company has also helped its dealers find ways to reduce their inventory and lower capital expenses.
Commercial vehicle buyers have appreciated these steps – Ashok Leyland’s market share in the medium and heavy truck segment grew to 29 per cent in the June quarter of 2015, up from 24.7 per cent in the same period last year. In Tamil Nadu, the company’s market share has increased to 69.22 per cent.
Moving ahead Transporters are looking forward to a smoother ride, thanks to the easing of diesel prices and interest rates, coupled with expectations of economic revival. Also, technological advances such as automated engine health checks and GPS, regulatory changes such as the introduction of GST may mean freight operators have to navigate new terrains.
So how can the various stakeholders overcome the key issues ahead of the transportation industry?
The Transporter’s Meet organised by BusinessLine in association with The Hindu Tamil hopes to provide a forum to discuss the issues and stimulate informed discussion. The event, slated for August 29 in Namakkal, features distinguished professionals from IOC and Ashok Leyland who will share their insights on topics pertaining to the current state of the transporters.
With the transport segment doing the heavy lifting when moving freight – carrying two-third of all freight (measured in billion tonne kilometres) – its prospects are keenly watched. CRISIL Research expects that freight traffic through road will increase by 8-9 per cent between 2014 and 2019 aided by growth in non-bulk traffic and revival in freight demand.
The meet will offer participants a chance to get first-hand information on the latest innovative products and state-of-the-art research and technological advancements in the commercial vehicle segment. IOC is the Title sponsor for the Transporter’s meet and the event is powered by Ashok Leyland.