Daimler veteran to write Leyland’s tech script

Ashok Leyland’s technology story will be driven by a veteran from Daimler Trucks as the Indian commercial vehicle industry gets set to cope with a new set of challenges.

Seshu Bhagavathula came on board as Leyland’s Chief Technology Officer less than six months ago. An IIT Bombay alumnus from the 1980s, he headed out to Germany 32 years ago to do his doctorate from the University of Stuttgart. This is Daimler country and it was perhaps the most natural thing for Bhagavathula to join the group.

“I was with Daimler for 20 years and responsible for its trucks. With this experience, I wanted to create a technology foundation for an Indian company,” he says. The timing is apt given that Leyland is now on a strong growth trajectory with its Managing Director, Vinod Dasari, driving the change.

Bhagavathula is only too aware that India is a price-sensitive market where it is impossible to replicate European technology. For instance, a truck here costs a fourth of one in Germany. Yet, this is hardly a deterrent with the new CTO confident that Leyland can more than hold its own vis-a-vis competition while meeting emission norms too.

“If I improve the reliability of our trucks by seven per cent using the right technology, I will have improved their life by 50 per cent,” says Bhagavathula. Simply put, this means that fewer trucks will return to workshops.

Leyland has been pulling out all stops to enhance its standing on technology and R&D with these improvements clearly visible in its trucks. Sure, it could be investing less than international benchmark levels but he insists this money well spent.

Daimler, in contrast, spends about four per cent of revenues on R&D though a lot of it is not used. “Of course, competencies within (Daimler) go up significantly but we cannot afford that and investments have to be made where it make sense,” says Bhagavathula.

In India, innovation or technology in trucks is largely intended to help the end user make profits. This takes precedence over developing any other capability. “Our two per cent R&D spend goes exactly there,” he adds. The Leyland BS III inline fuel pump is a case in point which is a global first and an Indian solution to a local problem.

With electronics in trucks dominating the BS IV theme, repairs could pose a challenge to fleet operators. Leyland is looking at reducing this component to make repairs simpler and yet comply with emission norms. Bhagavathula believes that with fewer electronics, serviceability of trucks becomes easier.

“Anything wrong with electronics will reduce speed in order to control emissions. The advantage in mechanical parts is that fuel can be different. With fewer electronics, repairs can be done easily and the truck becomes a right value proposition,” he adds.

As for the next big leap to BS VI, some international cooperation might become imperative. As Bhagavathula puts it, an OEM (original equipment manufacturer) is “essentially an integrator with certain core competencies”. In the case of Leyland, this is in the area of engines, chassis, gearboxes and transmission technology. However, treatment of exhaust is a process where chemistry comes into play for BS VI and some help will be needed.

The shorter time frame is yet another challenge for truck makers like Leyland which showcased a Euro 6 truck at the Delhi Auto Expo.

Bhagavathula is equally concerned about fuel availability. “If one of the other oils that go into the engine is not okay, the system goes off. There are at least 28 parameters that could influence electronics in trucks,” he cautions.

With huge spends inevitable in the BS VI regime, how will manufacturers pass on costs in a price-sensitive segment like trucks? This is where the final value proposition becomes critical to convince the customer that he is in for a better alternative in areas like safety, fuel efficiency, drivability and comfort.

According to Bhagavathula, Leyland is well poised to grab opportunities in the second hemisphere market. “We will have challenges in selling our trucks in the US or Europe. But in India-like countries, Leyland has an advantage as it has the right products for these markets,” he declares.

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