According to Deppen, India has a “priority of energy independence” which, in turn, can trigger “some different technology paths” compared to elsewhere in the world. “We believe hydrogen will play a major role as also diesel which explains why we need to offer reliable and fuel efficient diesel systems in the market for some time,” he elaborated. The top priority was to have a broad range where BEVs (battery electric vehicles) would be more suitable in the light duty space while hydrogen would fit in ideally for long distance heavy duty trucks. “In between these choices, we will have a range of biogas and other fuels that will allow India to work towards cleaner emissions,” said Deppen.
Horses for courses
He reiterated that technology choices varied from one region to another and here is where adaptability was crucial. Sometimes, a stringent technology mix for Europe may not be required in other markets. Truck operators understand the nuances of the business well —“they have very good calculations” — and Daimler Truck would bring the right technologies to individual markets.
“With scale, costs will come down in the transportation sector which is important from the viewpoint of economic feasibility for those transporting goods,” he said.
The company, continued Deppen, “is proud” of the eActros and eCanter as well as the eCascadia operating in the US. As he put it, they are “reliable and practical offerings” for the world. “We mentioned that a light duty BEV solution is planned for India next year but we also see that the energy situation in India is different from Europe and other markets,” continued Deppen.
Beyond this, it is a huge market where infrastructure is developing rapidly and that is welcome news for the logistics industry. India also has massive investments flowing into solar energy and wind power..”the key challenge will be how do you create the blueprint for the energy provision of India?”
Deppen said the chain of renewable energy and creating green hydrogen also promised plenty in the future. The Indian market also has a “strong supply base” and there was no reason, therefore, to be worried especially with technology and innovations coming in from the huge competencies present within the ecosystem.
CNG limitations
Daimler Truck is hopeful that everything will fall into place by the end of this decade as regards availability of fuel, infrastructure etc. When it comes to CNG, the company management has observed that its reliability and cost of operations do not meet the expectations of a proven diesel power train.
“For long haul distances, diesel is better and CNG/LNG do have applications which we are observing carefully,” said Deppen. The unanimous view within the company is that it is only an interim technology which does not really meet the objective of decarbonisation. Hence investments in CNG will take a backseat to hydrogen or BEVs as it could end up becoming “a costly adventure” otherwise.
The industry, he continued, was going through a “dramatic transformation” from petrol to electric and other options along with the rise of digital technology where vehicle architecture has become even more advanced and complex. There are also new rivals emerging “which makes everyone’s lives more difficult”.
The fact that the Chinese are dominating the electric space has created a huge sense of paranoia in Europe and the US. India, likewise, has its own set of problems with China even while it remains the country’s largest trading partner.
Chinese might
Asked what the Chinese domination in EVs implied, Deppen replied, “I will try to answer that question without getting into any political grey zone! We need to acknowledge that the vehicle battery technology is dominated by Chinese manufacturers. We must hand it to them and can we localise as well is the next question.”
Batteries are not only expensive but heavy which makes it a “huge logistics challenge” to transport them especially in truck technology. No other country in the world has as much assembly capacity as China which outstrips their domestic demand. “They are looking for new markets where new brands are emerging which offer plenty to customers,’ said Deppen.
Mitsubishi Fuso, part of the Daimler Truck family, and Hino Motors, a Toyota group company, have also been in talks for a merger which was to have been finalised towards the end of this year. There has been a delay now since Hino is still in the phase where it needs to resolve some of the emission challenges in the past especially in the US market. “Our position from the Daimler Truck and Fuso side has not changed at all…we need to have a clear understanding of the potential risk from that situation before we can move ahead. We believe this cooperation will add value to the industry,” said Deppen.
Fuso, Hino can bring change
However, it was as important protect everyone’s interests and have a clear view of the risks. “This is why we are working with the Hino team as much as possible to clarify the situation,” he added. At the time of making public their intent to merge, the two companies and their parent entities had said that initiatives in the hydrogen area would be a major focus area and the goal was to accelerate the dissemination of hydrogen mobility.
“The transformation of our industry means we have to fund several new drive technologies at the same time: batteries, hydrogen-based fuel cells and potentially also hydrogen internal combustion engines. There is only one way to make this parallel tech development work economically: scale,” stated the representatives of these companies. The objective was to become “a force, a strong Japanese truck company” with a complementary portfolio of products, a massive network and a workforce of highly experienced employees across the globe. “This merger will position us as the foremost player in the Asian transportation sector, strong enough to compete with all the new brands we see entering the market, especially outside of Japan,” they added.
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