Indian truck makers apprehensive about implementing ABS

Sections of the Indian truck industry are wary of the government's plans to make anti-lock braking system (ABS), a safety feature, mandatory for heavy vehicles, as they would add to costs in an already difficult market environment.

ET reported recently that ABS, which helps prevent uncontrolled skidding while brakes are applied to a vehicle, is likely to be made mandatory for all passenger buses above the gross weight of 5 tonnes and trucks above 12 tonnes. It's already mandatory for trucks carrying hazardous goods.

"We are in support and welcome implementation of the ABS," said Vishnu Mathur, director general of Society of Indian Automobile Manufacturers (SIAM), the industry lobby group. However, he said, "There have been concerns over customer acceptance and affordability expressed by some original equipment manufacturers."

Some analysts, wishing anonymity, have pointed out that foreign truck makers are more open to the move while Indian ones are uneasy. The Indian truck market has been dominated for years by two Indian truck markets - Tata Motors and Ashok Leyland. In recent years, a slew of foreign brands such as Daimler, Volvo, among others, have come in to challenge the incumbents.

Mathur downplayed such differences. He said the big worry is about the timing of the ABS implementation, given the state of the market. "The market conditions are so tough, with a negative growth of 20%. Implementing ABS and passing on the cost would further depress the market. Also India is a very cost conscious market, so customer acceptance is also an issue," said Mathur.

Vinnie Mehta, Executive Director of the Automotive Component Manufacturers Association of India, did not return calls. German truck maker Daimler, which operates through the BharatBenz brand in India, is in favour of ABS. It already offers ABS in its heavy duty truck variants.

"Making ABS mandatory for all heavy duty trucks would be an initiative that Daimler India Commercial Vehicles would highly welcome, as we believe it would make vehicles safer and add to better road safety in India," said Florian Laudan, its spokesperson, in an email response.

Laudan agreed the increase in price could be a factor. "But this certainly is only a question of time. Anyway, even in India ABS is already mandated for trucks in transportation for hazarded goods, and also for Tractor Trailers," he said.

Ashok Leyland did not want to comment at this stage. "The reason is that the matter is under discussion at the highest level of SIAM and hence as a member we will reserve our comments till the right time," he said.

India's No. 1 truck maker Tata Motors already has ABS in its PRIMA range of premium trucks. The current thinking in the Tatas, a source said, is that though the higher price will be a factor in a difficult market, technology will eventually win over. "Same happened in the case of radial tyres," the source added.

An advantage that foreign players seem to have in adopting ABS is that they operate in the premium segment. Indian companies are stronger more in the volume segment, where passing on price increases aren't easy.

SP Singh, senior fellow and coordinator Indian Foundation of Transport Research & Training (IFTRT), a research body, doesn't agree. He estimates that the cost of vehicle will go up by Rs 15,000-40,000 per vehicle based on the variant, but believes it could be bought down through economies of scale.