In an exclusive interview, Dimitrov Krishnan, Managing Director, Volvo Construction Equipment (India), discusses Volvo’s dedication to innovation and sustainability at Excon 2023. He highlights the transformative shift towards electric technology, market trends, and the company’s strategic vision for continued growth in India, featuring a diverse range of showcased products and a commitment to fostering the industry’s development.
‘Make the change possible’ is a very prominent theme for Volvo CE at Excon 2023. Will you expand on that?
At the last trade show in January 2023, namely bauma Conexpo, we proclaimed, “Change starts here,” but now at EXCON 2023, we affirm that change is indeed here. Our transformation lies in introducing concepts earlier this year in January and now, in December, presenting the full range of products with diverse possibilities. This includes addressing customer concerns about investments, battery management, and charging solutions. We strive to provide comprehensive solutions that address all these aspects together.
Would it be correct to say that the previous exhibitions focus on product display has shifted to various new technology dimensions offered within each product?
In India and across the globe, Volvo Construction Equipment has consistently led the way in introducing new technologies to the market. Whether it was converting a tractor into a wheel loader in 1954, pioneering the articulated hauler from a tractor in 1959, introducing the 50-ton excavator in 2001-02, which revolutionised the mining segment in India, or launching telematics solutions in 2010, our track record speaks volumes. Today, what we’re bringing is truly revolutionary.
We aim to show customers that electric technology is easily adoptable, and transitioning from diesel to electric is something we’re committed to facilitating. Electric power represents the future, driven by our strong belief that we must leave a better world for future generations. It’s crucial that we offer solutions that align with our core values.
Since the product launch earlier this year, we’ve witnessed significant demand for our products and solutions. Rather than simply selling machines with a price tag, we’ve offered them as a service, charging customers based on usage. This approach serves two purposes: it reduces the customer’s risk associated with ownership and addresses safety concerns related to electricity in the construction equipment industry.
While diesel machines traditionally operate on low-voltage electricity, our electric machines utilise 400–600-volt systems, which require a deeper understanding and pose higher risks if mishandled. By offering our machines as a service, we’re easing the adoption process for customers, allowing them to focus on their core operations without immediate competency-building requirements.
We anticipate that as the market matures, customers will eventually own such equipment. By then, we’ll have established sufficient traction, trained personnel, and gained the confidence of the market. This transition has been smooth, with customers gradually integrating electric equipment into their operations and training their own personnel accordingly. Witnessing customers now utilising their own trained operators is a testament to the success of our approach in facilitating the transition to electric power.
So how much empathy do you discern for these electric products in the market?
We are witnessing a significant demand in the market. Individuals and organisations committed to building a sustainable world are actively seeking such solutions. These include mid to large-sized companies, such as steel and cement plants, as well as contractors engaged with these firms, who are eager to explore and embrace these sustainable solutions.
What are the project areas which are driving volumes for Volvo machines – both conventional and electric?
As an industry, the primary driving factors include road construction, railways, urban infrastructure, real estate, and mining. We are leaders in the mining segment, offering large machines that play a critical role. The current volumes in coal mining surpass previous records, with machines growing in size. Our products, known for fuel efficiency and higher productivity, are highly favoured by customers, leading to significant demand in the mining segment. Additionally, traction in other segments has been equally strong.
Are there specific segments demonstrating pull for electric products?
These considerations are based on the customer profile. In India, many companies prioritise carbon reduction as a critical commitment, driven by shareholder demands or industry trends toward sustainability. Industries like cement and steel, known for high energy consumption, view the shift to electric power as a positive step toward decarbonisation. Consequently, we receive numerous inquiries from these sectors and from quarry owners interested in electric solutions. The adoption of electric vehicles (EVs) is no longer niche; it has become a mainstream trend with the increasing use of two-wheelers and four-wheelers across the country. As households embrace electric vehicles for their ease and safety, the transition to electric solutions for machinery becomes more feasible. Customers intrigued by technology and open to innovation are keen to explore new options, which bodes well for our electric products.
We are eager to expand the use of electric machines in urban construction projects. I strongly believe that city municipalities should advocate for the use of electric machines in construction. We are prepared to initiate pilot projects in collaboration with municipalities nationwide, showcasing how electric products can transform construction sites. By partnering with governments, municipalities, and contractors, we aim to demonstrate that entire projects can be completed without burning a single ltr of diesel, making the benefits of this change visible and adaptable to all.
Could you very briefly talk about the products you have on display here?
Here at the Volvo booth in Excon 2023, we have showcased a diverse range of machinery, including two compactors that are 100 per cent Indian and electric, developed locally, reflecting our commitment to indigenous innovation. Alongside, we feature the EC500 Electric excavator, the country’s first grid-connected 50-ton excavator, suitable for cable-connected segments such as vehicle scrapyards and limestone mining. Our lineup also includes the L120 Electric Wheel Loader, designed for rolling applications with a charging autonomy of more than a standard shift, lasting 8-12 hours.
Furthermore, we have presented the EC 80 excavator, ideal for various small-scale jobs, and the EC210D diesel excavator, renowned as the industry’s workhorse. From SDLG, we have unveiled the L956H diesel machine, a brand-new model in the 5-ton category, poised for significant market traction. Additionally, we also featured an SDLG electric machine launched earlier this year, boasting numerous success stories.
On the Volvo Penta side, we have exhibited engines manufactured both in India and abroad, highlighting our global presence. Volvo Trucks have showcased their connected solutions offerings, emphasising connectivity and efficiency. Our equipment-as-a-service booth demonstrates how our solutions can benefit customers, along with discussions on uptime services.
Moreover, we present various charging solutions, including fast chargers, slow chargers, and mobile power bank chargers, underscoring our commitment to sustainable energy practices. This comprehensive display at Excon 2023 marks the largest showcase of electric machines to date, indicating our dedication to innovation and sustainability.
What is your strategy for 2024 and beyond? Any new expansions and investments being planned?
Moving forward, we anticipate significant growth in the Indian market, with projections indicating that India will likely become the second-largest market by 2030. This underscores the undeniable importance of India as a market that no major brand can afford to overlook. It is imperative for us to establish a strong local presence, develop products tailored to the Indian market, and expand our footprint in the region.
Having been in India for 25 years, Volvo has made substantial strides in local manufacturing. Today, we produce excavators, wheel loaders, compactors, and pavers at our Indian facility, reflecting our commitment to the market’s growth. We remain steadfast in our commitment to further expansion and development. As evidence of this commitment, we have recently invested in a new assembly line for wheel loaders, which will commence production shortly. We are poised to make additional investments in the future to support our growth trajectory. We remain gung-ho about the future of the Indian industry and remain dedicated to fostering its growth and development.