“We produce six cylinder and four cylinder engines. We have started talking with potential customers (off-the-highway vehicle makers). Similarly, we are looking at supplying 4x4 trucks to Indian defence sector,” he said. Off-the-highway vehicles are earth moving machines like dumpers, loaders and others and the vehicle makers buy engines from others.

Arya said the Indian government has to change a rule permitting foreign owned companies to supply trucks to the defence sector, and is likely to be changed soon. As regards the freight aggregation business, he said talks are on with some as the sector is seeing entry of several players. He said the commercial vehicles business is cyclical and the company has to look at other business avenues.

Agreeing that the small goods carrier segment offers good volume for any new entrant, Arya added this would be ideal segment for electrification. Dwelling on DICV’s performance in 2019, he said that in the domestic market, truck sales dropped to 14,474 units from 22,532 units sold in 2018 which was in line with the 35 per cent drop in industry sales volumes.

The company increased exports of its trucks by 14 per cent to over 8,000 units, transmissions about 13,000 units and also components last year, Arya said.