New Age Engines
<span style="font-weight: bold;">More electronics, new after-treatment solutions and technologies such as SCR will have a greater role to play in the coming year when the next level emission regulations are implemented.</span> <p></p><p>Diesel engines are the major source of power for various machines which are utilised in construction, agricultural, automobile and industrial verticals. According to 6Wresearch, Indian diesel engine market revenues are projected to grow at a CAGR of 4.9 per cent during 2018-23. Major demand for diesel engines is generated from automotive industry, followed by commercial vehicles, agri equipment, and construction equipment. </p><p> <span style="font-weight: bold;">Market dynamics</span><br />Increased mechanisation in agri industry and the ongoing push in infrastructure development are driving the demand for diesel engines in these segments. According to<span style="font-weight: bold;"> Farrokh N Cooper, Chairman and Managing Director, Cooper Corporation,</span> in India, major demand for diesel engines can be attributed to automotive industry and the growing retail and logistics industry in the country which in turn has contributed to the increase in sales of commercial vehicle, thus driving diesel engine market. Further, government's thrust on key sectors like agricultural and infrastructure sector is also driving demand for diesel engines in India. </p><p> Diesel engines of 31-100 hp range accounted for major share in Indian market in both revenue and volume terms. The construction equipment segment is continuously growing in India. As the infrastructure and the urbanisation in India are rapidly growing, this trend will be persistent. <span style="font-weight: bold;">Miron Thoms, Vice President and Head, Volvo Penta India </span>explains, "We foresee a very strong growth, especially in the all-speed engine segment. At the same time, the trend for diesel engines with advance technology to meet the stringent emission regulations will prosper."</p><p> A 6WResearch report indicates that amongst all, 31-100 hp diesel engines accounted for major share in Indian diesel engine market in both revenue and volume terms. Passenger vehicles, tractors and construction equipment are the key revenue generating segments. </p><p> According to <span style="font-weight: bold;">Kenji Kawamoto, Managing Director, Mitsubishi Heavy Industries-VST Diesel Engines</span> demand from construction equipment segment is consistently growing, as the number of equipment sold in the market keeps increasing year after year. "If we see the diesel engine alone, all new features and technologies introduced are mainly to meet emission norms, though it can also have impact on fuel efficiency and power-to-weight ratio," he adds.</p><p> <span style="font-weight: bold;">Electric power </span><br />While the concept of electric vehicles is picking up fast in passenger vehicles segment, it has a slow take-off in the off-highway vehicles/equipment segment. Recently, a leading global construction equipment player has announced its intent to switch from diesel powered to electric powered in the compact equipment segment and has decided to slowly phase out the diesel powered equipment in the compact sector. What's the seen in India? Kawamoto says, "Off-highway industry is still far behind. There are some bold moves from a few OEMs outside India. One even announced during electrical equipment launch that they would discontinue the development of diesel variant. But, everything as of now is for the market outside India. Hence, it is too early to have any impact here."</p><p> Volvo Penta is a company that is working a lot more than diesel engines. Thoms says, "Today we are already working on not only electric drivelines and electromobility but also work with automation and connectivity. When it comes to India, we are listening to our customers and the market, and offer the right solution at the right time."</p><p> <span style="font-weight: bold;">Preparing for next level</span><br />With the next level of emission regulations around the corner, engine manufacturers are taking up major tasks on design changes and upgraded after-treatment solutions. Kawamoto explains, "The major change area is how to treat the harmful exhaust gases better than before. In relation with this, we may also have to modify the fuel injection and combustion system to maximise the combustion efficiency." Volvo Penta has developed an after-treatment solution based on customer, operators and end-customer needs. The result is the Volvo Penta SCR after-treatment solution with a light EGR. Thoms elaborates, "Our customers take the new emission regulation serious and are already working on a smooth transition from BS CEV III to IV for their customers. This means Volvo Penta is ready to support their customers today and tomorrow." </p><p> <span style="font-weight: bold;">Challenges</span><br />The major challenge faced by the diesel engines market it conforming to the upcoming mission regulations. With the introduction of BS (CEV/Trem) IV, all engine manufacturers are required to introduce after-treatment systems for engines between 129 kW to 560 kW. This, in turn, will put enormous demands on OEMs, forcing them to re-design their machines to install new engines and after-treatment systems. However, global players such as Volvo Penta are better prepared for this. Thoms explains, "We have been supplying BS (CEV/Trem) IV equivalent Stage IV/Tier4 Final engines globally since 2014 and have more than 200 OEM customers. From what we are speaking to them, it's clear that our OEMs and operators are extremely pleased with competitive advantages of these engines in terms of no re-generation and especially easy installation, as well as low operating costs."</p><p> <span style="font-weight: bold;">Opportunities</span><br />Demand for various capacity engines is growing with the improved awareness on construction equipment. Kawamoto observes, "Customers are now more aware on what kind of equipment they need. Earlier, backhoe loader was the all-rounder for any earthmoving work in cities, but now you can see some mini excavators also on the job sites. So, there is a lot of scope to grow in this segment and we have ready solution for OEMs who plan to develop such machines in India."</p><p>The upcoming emission regulation will create new opportunities for Volvo Penta as Thoms says, "With BS CEV IV regulations coming into effect from October 2020 and all engine suppliers moving to electronic engines with after-treatment system, we will see more of opportunities." Way forward According to Thoms, going forward, electromobility will come for sure in the off-highway market, the only question is when. "But until then, the diesel engine in our power range will play a vital role in India to power the nation," he adds.</p><p>With construction equipment market in India diversifying from the common machines of backhoe loaders and excavators into all equipment types in the last few years, there is a scope for each equipment segment when market evolves further. This will keep up the momentum for diesel engines too.</p>