Kamel Sid, Global Head of Operations at Volvo CE, and Dimitrov Krishnan, Managing Director of Volvo CE India, express unwavering confidence in the newly launched EC210, a 'Built for Bharat' hydraulic excavator.
Their optimism stems from not only in the machine's versatility across a spectrum of applications—ranging from road building and rock breaking to general construction, waste management, quarry operations, and sand mining—but also in its modular platform, which allows for tailored solutions to meet diverse customer needs. The EC210 stands out with it’s fuel efficiency, boasting up to a 15% improvement, and up to 20% lower maintenance costs. Additionally, this robust excavator is poised for success in export markets, underscoring its global appeal.
Modular Machine
Modularity is a global concept, and this machine is built on the same modular design principles used in China and Korea, for instance. According to Sid, this approach “provides us with greater flexibility in our manufacturing footprint. As a result, the machine can be produced and sourced independently in various parts of the world right from the design stage, which was not possible before.”
A simple example, according to Krishnan, would be adapting the machine for a specific market by using different engines. The interfaces are designed to accommodate various engines seamlessly because it offers multiple options. To achieve this, the electronic system must be compatible with multiple engines, and the software must support this versatility.
Similar to Software Defined Vehicles in passenger cars, Volvo CE has developed CAST (Common Architecture Shared Technology) systems, showcasing a profound level of integration. Additionally, the structure and hardware components are integral parts of CAST ensuring comprehensive adaptability and functionality, Sid said.
Local Solutions For Global Market
The EC201 is designed specifically for India, with significant development work conducted locally and in collaboration with its 16 other plants of Volvo CE worldwide. Consequently, the global company recognises ample opportunities for sourcing child parts, systems, and modules from India, in addition to fully built units, for other locations to enhance product competitiveness. Sid sees this as a strategic option, considering it from a footprint standpoint. 'We strive to balance cost, availability, and time to market. Additionally, we are mindful of our CO2 emissions, as transportation is part of the value chain. When cost-competitive solutions from India can be delivered to other markets, we seize the opportunity,' he said.
As this machine was primarily designed and produced for India, the company's priority is the domestic market. “We have been investing here for the last 25 years and have witnessed accelerated infrastructure development in recent years. We want to be part of this growth, and hence, we have ambitious goals and expectations for India. The best way to achieve this was to start from the market requirements and then design a solution here, rather than adapting a European-based design,” he said. The company began by identifying the best possible offerings for the Indian market, given its size and potential, and this approach has been fully justified, he added.
Growth Strategy
For the construction equipment’s success in the domestic market, Krishnan emphasises the importance of establishing connection with customers. 'The product accounts for only 40% of the story,' he says. 'The remaining effort lies in the market—engaging with customers and establishing meaningful connections.' He firmly believes that a robust marketing strategy is paramount. To Krishnan, it is essential to provide something that resonates with customers. While the product is the cornerstone, effective communication will enhance the overall process, which is why the company has launched a new campaign – ‘Karo Zyada Ki Umeed’ (expect more), stressing EC210’s core values under the four pillars of Zyada Performance, Zyada Value, Zyada Savings, and Zyada Uptime.
The new campaign aims to make our brand more accessible and understandable for its customers. Volvo is renowned for offering premium products to clients who prioritise productivity and seek to achieve the lowest cost per tonne over an extended period. These customers are engaged in high-productivity applications and have a sophisticated understanding of their operational needs, he explained.
There is a substantial number of customers in the infrastructure segment who use the machine less frequently, around 2,000 to 2,500 hours per year. For this mass market, the company’s previous solutions were inadequate because customers could not fully utilise the machine. Ultimately, customers seek value for money tailored to their specific needs. “With the EC210, we have strived to address the requirements of the majority of our customers. The result is a versatile product with enhanced strength, the ability to switch between applications, and a competitive price point that fits most budgets,” he said.
However, to penetrate the market effectively, “we need to engage with more customers. Our goal over the next twelve months is to attract a significant number of new customers, leveraging word-of-mouth, which is crucial in this industry. Building a strong base of reference customers is essential, as Volvo customers tend to remain loyal once they experience our products. Overcoming this initial barrier is our objective, and this campaign is designed to achieve that,” he elaborated. Therefore, the company plans to conduct 210 distinct launch events across the country, mirroring the EC210 model number, to aggressively reach out to every potential customer, Krishnan said.
According to him, the CE maker’s dealer partners are equally enthusiastic, having invested in additional branches, parts, components, and the training of their personnel. The company has been preparing for this market launch for over twelve months, concurrently with product development. The foundation is set, and now it's time to complete the structure. The company is also collaborating with multiple finance partners to provide a comprehensive package for its customers, including end-of-life disposal options, Krishnan added.
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