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-   -   Fully-built trucks could gain in popularity (https://www.team-bhp.com/forum/commercial-vehicles/209751-fully-built-trucks-could-gain-popularity.html)

According to a media report, truck manufacturers are likely to produce only fully-built trucks in the days to come. The production of trucks without chassis or load bodies might be discontinued altogether.



The report suggests that the upcoming BS6 emission norms, safety regulations, and new axle norms will result in an increase in demand for fully-built trucks. The growth is expected to come over the next few months. Only 50% of the trucks in India come with factory-fitted bodies and cabins. The remaining get their bodies built and fitted later on. The truck and bus body building industry, which is crowded and largely unorganised, is estimated to be worth Rs. 700 crore annually.

The upcoming emission and safety regulations are expected to add a lot of electronics and sensors to the trucks. Getting the bodies built outside could get the electronics to malfunction. Therefore, it would be necessary for the trucks to come with factory-fitted bodies. The new axle norms will allow trucks to carry heavier loads. This could lead to higher wear and tear of the vehicles.

The need for factory-fitted cabins is also increasing due to the demand for air-conditioned cabins. 15% of medium and heavy commercial vehicles come fitted with AC and the number stands at 10% for light commercial vehicles. These figures are expected to grow as demand increases, especially for E-commerce freight, which requires a quick turnaround time.

Source: Economic Times

Link to Team-BHP News

A very welcome news from the industry point of view. Full built vehicles (FBVs) have pretty high margins as compared to just the Chassis. However, this will directly impact the livelihood of the independent body builders.

If safety is taken into consideration, this is definitely a step in the right direction. If OEMs can somehow absorb the talented manpower at these independent body builders, it will a win-win situation for all.

Any step that improves the quality of life for truckers is welcome. This is certainly not limiting to the safety of the drivers but will add to their comfort and convenience by the scientific design of cabin.

Cheers !

I don't have a lot of knowledge on the CV industry but a move to bring about fully built CVs straight from the factory would be good as this ensures the coaches are standardized across the industry, conform to industry/Govt. regulations and specifications and leave no room for operators to skim on safety/convenience features to save cost.

What would this mean for OEMs though: they would need to ramp up on coach building capabilities, along with allowing for customization. Possible JV/take-overs between OEM and coach-building companies?

Fully built trucks, and buses will have takers as they purchaser will get a loan on entire vehicle, and not only the chassis component.
For buses fully built should be the norm, and for trucks it should be chassis with cabins, and not cowls.
Many times loads require customized bodies, a tanker has different design for LPG, Chemical, Liquid fuel, Milk etc.
One requires a flat bed to carry a container, full box body for some items, a insulated refrigerated box body for frozen food etc.
Truck makers can make a few standard body types available to order, but sale of bare chassis with cabin will have to continue.


Rahul

With these changes, I hope there will be seat belts for the driver and co driver, and at least lap belts for passengers.

It will slowly kill the private coach and body builders, as a side effect.

As an outsider who has limited knowledge of the CV industry, this sure looks like a win-win to me. Truck manufacturers see bigger ticket sizes, truck drivers get more comfort & truck owners get a standardised product. The only ones who might suffer will be the customers looking for the cheapest possible deal. And of course, the after-market cabin builders.

That said, the CV industry is suffering and it shouldn't become like a cartel where all the manufacturers come together informally to pull partially-built trucks from the market and set high prices for fully-built ones.

What is the typical price difference? Between a fully-built vehicle from the factory versus getting one made in the aftermarket?

Good move, but I feel that It would be difficult for the manufacturers to offer fully built bodies for specialised applications such as car/bike carriers, refrigerated trucks, gas and liquid tankers and so on.

Although i have worked with one of the truck OEMs but that was 7-years back. I do not recall the exact numbers but have some faint idea. Anyone who has been part of the industry recently, please feel free to correct:

Typically for a 25-ton tipper (dumper), the cost of building a body aftermarket should be around 3 lacs. On the other hand, the delta on a fully built vehicle (FBV) should be around 4-4.5 lacs. Which means, the difference is in the 1-1.5 lacs range.

One big advantage of buying a FBV is that the vehicle can be put to use from day one (and hence earnings start from day 1). Whereas, if the body is to be built aftermarket, you will need ~30 days. Also, as someone has already highlighted, the purchaser will get a loan on entire vehicle, and not only the chassis component.

One potential advantage for everyone would be that good quality under-run bars, and possibly side under-run protection would be provided as standard on all trucks.

While gaining popularity is one aspect, I don't see how freight owners would embrace these trucks given their variety of applications and use cases!

If this was coming across as a norm or a mandate that made every truck stick to certain dimensions when it comes to body building, It may have certainly made our highways feel more safer.

After all, each passing day we see superlative innovations by truck owners who flout possibly every norm and extend the dimensions of their trucks from every angle because for them, 5 trucks with wider loading area would mean one truck less to transport bikes. They may even feel content that they are doing their bit for the environment by saving one truck to run on the road with these mods!!

I'm in contact with the bus body building industry as a supplier.
A locally built 12M Ac provision bus body starts from as low as 10 Lakhs, and can go upto 24 lakhs if all sub assemblies are purchased from good manufacturers.
A fully built bus from Marcopolo / ACGL / Sutlej etc with standard but low frill fitments costs about 18 Lakhs more than the bus chassis. This can go upto 30 Lakhs if all sub assemblies specified are the best in the market.



Gas and Liquid tankers are built only by authorized manufacturers and go through a lot of testing and approvals.



Under run bars always come with the Chassis, issue is they break off very early due to impact with speed breakers, stones, other vehicles, and while going into off the road parking lots. These broken bars are kept in the transporters depot and re welded just before the bi-annual inspection is due.



World wide company built trucks populate 80% of the market where as rest are custom built. Situation here is exactly the opposite.


Rahul

GST and De-monetisation already killed most of the players. The best of the rest will survive as vendors to OEMs

I doubt OEMs will ramp up in-house capability. What they might do build is house design teams for full body ( which mostly they have already - so maybe add some more head count ).

Like you said, JV/take overs are possible but most likely it would be pure vendor arrangements like with any other parts that are being supplied.

We have another thread running on how there is an economic slowdown about which is hitting all major players.
The trucking industry being the one that gets hit the first - will this not hit them hard? they have to pay more for something that does not add significant value to them, at a time when funds are scarce - won't this simply force buyers onto the used market, and probably drive up demand in the reconditioning industry ?