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Paving way for bolder innovation for the transportation industry

In conversation with Raghavendra Vaidya, MD & CEO, Daimler Truck Innovation Centre India (DTICI)

Raghavendra Vaidya, MD & CEO, Daimler Truck Innovation Centre India (DTICI)
Raghavendra Vaidya, MD & CEO, Daimler Truck Innovation Centre India (DTICI)

At the forefront of solving intricate engineering challenges, the Daimler Truck Innovation Centre India (DTICI) stands as a beacon of innovation. Led by Raghavendra Vaidya, the Managing Director and CEO, DTICI relentlessly pursues cutting-edge solutions in the automotive industry. Vaidya’s extensive experience in technology leadership and digital strategy, coupled with his previous roles at Mercedes-Benz Research and Development India and various divisions of GE, have positioned him as a seasoned expert in the field. With a focus on vehicle connectivity, the global team under Vaidya’s guidance spans across Germany, the USA, and Japan, working harmoniously to pioneer advancements that shape the future of the industry. Through their unwavering dedication and profound expertise, DTICI and Vaidya’s leadership continue to push boundaries, revolutionizing the way engineering challenges are addressed in the pursuit of excellence.

In conversation with Raghavendra Vaidya, MD & CEO, Daimler Truck Innovation Centre India (DTICI) to know more about the focus on research, product engineering & IT capabilities to empower all business units and brands of Daimler Truck worldwide.

Can you tell us a bit about the background of the Daimler Truck Innovation Center India? When was it established and what is its primary mission?
Mercedes-Benz Research & Development India (MBRDI), an engineering and IT center for Daimler, has been operating in India for over 20 years. MBRDI served various divisions of Daimler, including passenger cars, commercial vehicles, trucks, buses, and financial services. As part of a global announcement, a new independent entity named DTICI was explicitly established for Daimler’s commercial vehicle business, focusing on engineering and IT. DTICI was officially launched on December 1st, 2021, coinciding with the global separation and the listing of Daimler Trucks on the German Stock Exchange. This marked the evolution of the concept into a tangible reality.

Our primary focus revolves around engineering and IT. We can categorise our work within the engineering domain into two main areas. The first category is product engineering, encompassing traditional mechanical and electrical engineering disciplines. The second category entails software and electronics, which involves the integration of software and electronic components into our trucks. Globally, our trucks utilise drive-by-wire systems, which employ software and electronics to connect the driver with the vehicle. Our primary focus lies in developing and optimising these drive-by-wire systems for our trucks.

Innovation is at the core of Daimler’s mission. Can you provide some examples of innovative technologies or solutions that the Innovation Center has developed or is working on?
The centre’s primary focus is on driving innovation. Currently, our global strategy revolves around two key aspects. Firstly, “intelligence to drive” emphasises software development, harnessing intelligent technologies. Secondly, “power to drive” signifies our shift from diesel to zero-emission technologies. This innovation is crucial for Daimler trucks and the entire automotive industry, given the regulatory requirements and the environmental impact of commercial vehicles’ carbon emissions. Our unwavering dedication lies in achieving zero-emission solutions, the “power to drive,” while leveraging software advancements to enhance intelligence in driving, known as the “intelligence to drive.” These two focal points drive our innovative efforts within DTICI.

How does DTICI collaborate with other Daimler entities globally? And what is the benefit? What benefit does this bring to the development of new technologies?
Our collaboration model revolves around being an essential component of the global Daimler truck organisation. We proudly hold the distinction of being the largest engineering centre outside of our primary locations in Germany and the US. Our contributions span the entire engineering value chain, encompassing chassis, cabin, E-motors, battery electric systems, software, electronics, and IT. This collaborative approach enables us to actively engage with the global business, with our engineers from here playing an integral role within international teams. Our collective efforts ensure seamless collaboration across the engineering value chain, fostering innovation and driving success.

The Indian division of Daimler truck, known as DICV (Daimler India Commercial Vehicles), is located in Chennai. DICV primarily manufactures trucks under the Bharat brand for the Indian market. While we contribute to these vehicles’ product strategy, our scope extends beyond them. Most of our engineering efforts are dedicated to developing products for the North American and Central European markets. We play a significant role in shaping and enhancing the engineering work into these regions, showcasing our global reach and impact in the truck manufacturing industry.

Regarding technology, we know that every day there is a new change. So how does the Innovation Centre stay current with the latest development in the field, such as AI electrification and connectivity?
AI is predominantly employed for analytics and extracting valuable insights from data. For instance, we utilise AI and machine learning for predictive analytics. By leveraging these technologies, we can forecast part failures in advance, reducing downtime and maximising operational efficiency. As trucks are essential for transportation, minimising downtime is crucial for fleet owners who strive for maximum runtime. By preemptively predicting part failures, we facilitate proactive part replacements, leading to significant cost savings in warranties. Another area where AI plays a vital role is in part pricing for after-sales services. This complex task depends on factors like demand and dealer loyalty. Through advanced analytics, we provide pricing recommendations that ensure profitability while maintaining competitiveness. AI and machine learning are employed across various domains, including engineering, after-sales, logistics, and manufacturing, enabling us to drive innovation and efficiency throughout our operations.

What about the electrification part?
Electrification stands as a continuous strategic focus for us. We offer a range of battery electric products; however, the success of electrification depends on the development of charging infrastructure and the availability of necessary resources. We collaborate across the value chain to ensure all requirements are met for the deployment of electric trucks. Although we have already introduced the first generation of electric trucks in our fleets, achieving the required range for commercial vehicles is the main challenge. Unlike passenger cars, which can manage with 300 to 400 kilometers, our trucks need a range of 800 to 1,000 kilometers to traverse long distances, such as crossing the Alps within Europe. Extending range capabilities and establishing a robust charging infrastructure are major focus areas. Additionally, considerations regarding energy production are vital. While we address tailpipe emissions through electric trucks, the source of energy generation must also be clean to achieve overall sustainability.

Electrification entails more than just product development; it encompasses three key aspects. Firstly, the products themselves must meet the requirements. Secondly, there is a need for infrastructure development, including energy production and battery storage. Lastly, achieving cost competitiveness is essential, as electric vehicles are currently expensive. Governments worldwide subsidise these vehicles, but long-term strategies should aim for price parity, product readiness, and infrastructure preparedness. We focus on delivering product outcomes and collaborate with the ecosystem to facilitate infrastructure development. Electrification is a systemic challenge that requires collective efforts, as no single company or sector can address it comprehensively.

Coming to sustainability, which used to be a buzzword, is now the most important aspect. How are you prioritising sustainability and environmental responsibility in your innovation efforts? And what steps is the Innovation Centre taking to reduce the environmental impact on the products and the processes you create?
As an engineering centre, our primary focus from a sustainability perspective is to enhance the sustainability of our products and manufacturing processes. We emphasise optimising our materials, particularly steel and aluminum, with resource-intensive production methods. Continuous efforts are made to improve material efficiency and minimise environmental impact. However, our most significant contribution lies in creating sustainable products, such as battery electric and hydrogen-based vehicles. Ensuring optimal utilisation of energy stored in batteries is a key aspect. This extends beyond traction and includes considerations for heating, cooling, and other energy requirements within the vehicle. Advanced algorithms within our battery management systems enable us to optimise energy usage continuously. DTICI’s contribution lies in developing these innovative products that drive a sustainable environment, addressing the pressing challenges of energy efficiency and environmental impact.

What are some of the biggest challenges and opportunities the Innovation Centre anticipates in the coming year? And how is it preparing to address them?
The greatest challenge and opportunity lie in the availability of talent. Given the presence of highly intelligent, motivated, and inspired engineers eager to tackle complex problems, India presents a significant opportunity for talent acquisition. Over the next decade, the automotive industry aims to address challenges that have never been encountered. While the industry has made incremental improvements in perfecting diesel engines over the past century, the focus now shifts to solving novel problems related to battery electric vehicles, hydrogen-powered vehicles, and software-driven innovations within vehicles. These uncharted territories present first-time challenges that drive us to build a competitive advantage over our rivals. Unlike traditional advancements, these innovations necessitate solving problems for the very first time. For instance, university courses do not cover creating a platform for battery electric vehicles, and it demands practical learning, experimentation, and iterative improvements. The auto industry is confronted with the unique challenge of unravelling unexplored territories, not merely making incremental enhancements.

How do you address the need for skill improvement and promote continuous learning on the job within your organisation?
We have established programs that provide opportunities for our younger engineers to travel to global locations where experts have developed these capabilities. This allows them to work alongside experienced professionals and gain valuable knowledge and insights from their expertise. Additionally, we offer various training programs, including online courses and learning from experienced individuals, to keep our software engineers updated with the latest advancements. In the dynamic field of software, new tools, technologies, programming languages, and algorithms are constantly emerging, requiring engineers to stay abreast of these developments. We have implemented structured initiatives to ensure continuous upskilling and re-skilling, enabling our engineers to adapt to the evolving landscape effectively.

What’s your opinion on hydrogen-powered vehicles?
The story is constantly evolving, particularly when it comes to hydrogen. There are two primary ways hydrogen can be utilized. Firstly, it can replace diesel as a fuel in internal combustion engines. Essentially, we substitute diesel with hydrogen to power the engine. Secondly, hydrogen can be used in fuel cells to generate energy for direct vehicle propulsion or charge batteries. In my opinion, hydrogen certainly plays a role in a zero-emission future. Solely relying on battery electric technology may not suffice, especially for commercial vehicles. For passenger cars, battery electric vehicles can meet the requirements since long-range travel is not typically necessary between charging sessions. However, in the commercial vehicle industry, hydrogen has a clear application. Hydrogen Internal Combustion Engines (H2Is), as we refer to them, are being certified as zero-emission vehicles. Technically, they aren’t entirely emissions-free but come very close to it. If certification is achieved, we can expect parallel H2Is development. This technology will be utilized in heavy-duty long-haul applications, such as an 800-kilometre trip across the Alps or coast-to-coast journeys in the United States. The main challenge lies in establishing the necessary hydrogen production, storage, transformation, and refuelling infrastructure. However, creating this infrastructure is inevitable for commercial vehicles, and hydrogen undeniably holds an important place in the industry’s future. [Inaudible] commercial vehicle space will be transformed as a result.

But there is always a concern over the safety of hydrogen, particularly in regard to the potential leak into the atmosphere and the combustibility of hydrogen.
Indeed, there are existing challenges that need to be addressed. Even battery electric vehicles face the issue of fire hazards during charging, particularly when charging at high speeds. However, I believe these challenges are ones that engineers will tackle and overcome in the coming decade or so.