BMW
RNI No. MAHENG13758
Assembling Market Winning Strategies
INAUGURAL ISSUE
Vol. No.1 Issue No.1 June 2015 | US$ 20 `200
PT Minda: Daring Step And Dazzling Results AUTO PARTS ASIA | JUNE 2015 RNI No. MAHENG13758
Michael Johannes, Vice President, Brand Automechanika, Messe Frankfurt
Gears Up Exhibitors, Visitors For
HI-SPEED DRIVE Gold Seal-SAARGUMMI: Innovative Localisation
Al Dobowi: Delivers Future Motive Power Solutions
Cyrus & Pillo Aga of Gold Seal Group
Surender Kandhari ,Chairman, Al Dobowi
June 2015 | Vol. 1 | Issue No. 1
issue
in this
25
44
PT Minda
BMW Chennai Plant
Corporate
factory FLAVOUR
9
Editorial
Asia’s Auto Power
12 People
50
Cover story Messe Frankfurt Gears Up Exhibitors, Visitors
Daimler Trucks & Buses BMW Volkswagen India Volvo Group Meritor Cooper Standard
17
Launches
24
Corporate
Renault Kwid GenX Nano Terrano Groove
Stanadyne Amalgamations Launches New Diesel Pump
68 AFTERMARKET
Bosch Tec Alliance
82 BRAND TRENDS Michael Johannes, Vice President, Brand Automechanika, Messe Frankfurt
Elofic Elgi Rubber Autograde Zenith Al Dobowi
73
90
98
Scania comes to conquer
INAPA jakarta 2015: gateway to asean
Auto Parts Industry
foCUS
EVENTS
PERSPECTIVE
FEATURES
89
EVENTS
Latin America Auto Parts Expo
94
INSIGHTS Innovate To Win
96
PERSPECTIVE
Four Megatrends To Impact Indian Logistics Growth
101
GLEANINGS – International Jaguar Land Rover Continental Bosch Mitsubishi Navistar Raytheon Mercedes Test Facility
106 CALENDAR Calendar of Events
108 AUTO LAUGH
99
GLEANINGS – India
Practical People
GM India Honda Cars Ashok Leyland
32
INTERVIEW
SPECIAL REPORT
Ramesh Suri, President ACMA
62
Gold Seal-Saargummi Banks On Innovative Localisation
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sia is going to rewrite the future of the global automotive industry. The region will make and consume the largest number of vehicles soon. And AutoParts Asia, from Asian Business Media (ABM), will be at the centre-stage of the new order to inform, inspire and guide the various stakeholders in the OEMs, auto components and allied industries to help excel in their respective fields. A cursory look at the statistics about the ownership of cars and two-wheelers will reveal the potential market and the shape of things to come. Only 18 out of 1,000 Indians own cars. Compare this with 809 in the US, little over 500 in the UK, and around 100 in China. Even if the Indians are to move up to the level of the Chinese, it will be more than five-fold increase in car demand! Think of the mind-boggling figure and its impact if Indians were to reach the US standard! With India all set to overtake China in GDP growth in the coming years, explosive growth in vehicle usage and maintenance is going to be a reality. In addition to this is Indian Prime Minister Narendra Modi’s aggressive ‘Make in India’ campaign. This points to the immense opportunities for the Indian automotive sector. We are launching AutoParts Asia, the first of its kind, with a mission to connect suppliers globally. It will act as a vital link among vehicle manufacturers and component makers and allied industries in India and the world with focus on Asia. The experience we gained from our other two globally-renowned publications – Rubber Asia and Polymers & Tyre Asia – will come in handy for us in serving your interests the best way. In this inaugural issue we are proud to present as cover story Messe Frankfurt, world’s largest exhibition company for the automotive industry. We also have a number of special features including ‘Factory Flavour’, which is a real time ‘walk the factory’ for readers. We look forward to your enthusiastic involvement and support to make AutoParts Asia first, the best in Asia, and soon the best in the world. Wish you all a happy reading.
Kurian Abraham Editor-in-Chief
EDITO R IAL
Asia’s Auto Power
Editor-in-Chief: Kurian Abraham | Chief Executive Officer: John S Powath | Editor-in-Charge: Murrali Thalor | Associate Editor: KS Nayar Executive Editor: P Raghav Varma | Assistant Editors: Prof T N Kalamani, A Saj Mathews, P Venugopal | Correspondent: Sharad P Matade Editorial Office: Asian Business Media LLP, 39/3993- B7, Ground Floor, Vantage Point, V.R.M. Road, Ravipuram, Kochi-682016, INDIA Email: mail@abm.net.in, Tel: +91 484-2356284, +91 484-4016284
June 2015 | Vol. 1 | Issue No. 1
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Regd/Marketing Office: 501/502, Imperial Plaza, Corner of 27th & 30th Road, Near Nilgiri Garden, Bandra (W), Mumbai - 400 050, INDIA Phone: +91-22-2640-0829, 2640-0735, Fax: +91-22-2641-1894 Email: mail@abm.net.in, asp@abm.net.in Chennai Marketing/ Editorial Office: 22/37, 1st Floor, Karpaga Vinayagar Koil Street, Alandur, Chennai - 600 016 INDIA Phone: +91-44-42641425,+919841274461,+91 9940172323, Email: deva@abm.net.in, tm@abm.net.in Vice Presidents (Marketing): Antony Powath (asp@abm.net.in), Vijay Kurian Abraham (vj@abm.net.in) | Head-Marketing: R C Devakumar (deva@abm. net.in) | Asst. Marketing Managers: Anil Panicker, Praveen Manchal. US Correspondent: Dr Louis P Rumao, 621 Lockmoore Court, Rochester Hills, Michigan +1 48307-4229, Tel: +1 248 852 6634, Email: louis.rumao@ yahoo.com | China: Ella Liu (Liu Ting)/ Terry Yin (Yin Tian), China United Rubber Corporation, Beijing, Tel: +86-13911580967, +86-10-58650283, Fax: +86-10-58650288 E-mail: liut@chrubber.com, expo@chrubber.com | European Representative: John Stone, 73 Chaney Road, Wivenhoe Essex, CO79RR, England. Sapphire Media, Tel: +44 (0) 1206 822320, Mob: + 44 7769 675232, Email: john.stone@sapphire-media.co.uk | Australia: Jacob Cherian, Ausker Pacific Pty. Ltd., Suite 1, 1401 Burke Road, East Kew Vic 3102, Melbourne Australia, Tel: +61 3 9859 8922, Email: ausker@auskergroup. com.au | Japan: Shinichi Kato, Shinichi Kato Office Co., Ltd., 11-7 Nihonbashikabutochou, Chuoku, Tokyo 103-0026, Japan. Tel: +81 3-5645-8670, Fax: +81 3-5645-8671, Email: shinichi.kato@rubberstation.com | South East Asia: A. Divakaran A.D. Nair, 33, Jalan PJU 1A/43F, Ara Damansara, Petaling Jaya, 47301 Selangor, Malaysia. Tel: +60 3 78454608, Mobile: +60 12 3985357, Email: aaps_avico@yahoo.com | Thailand: Ms Somruetai Patana-anek (Mott), Managing Director, Busgum Co. Ltd., 1093/115, 21st Floor, Central City Tower, Bangna-Trad Road (K.M.3), Bangna, Bangkok 10260, Thailand, Tel: +66-2-3993946, 399-4374, 399-3896, Mob: +66-1-8429105, Email: somruetai.patana-anek@busgum.com | Sri Lanka: P P Perera, No.20, 4th Cross Lane, Borupana Road, Ratmalana, Sri Lanka. Tel: +94 11 4863529, Mob: +94 772 972571, Email: ppperera1946@gmail.com
AutoPartsAsia | JUNE 2015 | 9
people
Change Of Personnel At Daimler Trucks & Buses
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lrich Bastert (55), Head of Marketing, Sales and Services Mercedes-Benz Trucks, and Till Oberwörder (44), Head of Marketing, Sales and After Sales Daimler Buses, will swap their positions from July 1, 2015. This change is subject to the approval of the EvoBus Supervisory board. “Ulrich Bastert has overseen all marketing and sales activities at Mercedes-Benz Trucks
with great success over the past eight years. The brand has developed outstandingly under his leadership. In particular, his role in the introduction of our new truck product generation, which moved Mercedes-Benz forward into the leading position in the market, deserves special recognition”, Stefan Buchner, Head of Mercedes-Benz Trucks, has said. Based on his profound achievements and the associated forward-looking decisions at MercedesBenz Trucks, now seems to be the ideal time to switch positions with Till Oberwörder, he said. With his extensive experience, Ulrich Bastert is sure to make an important contribution to global growth at Daimler
Buses in his new position at the division. Since joining the Group in 1985, Ulrich Bastert has held various management positions in sales and marketing for commercial vehicles. He possesses extensive international management experience in marketing, sales and after sales. He joined the Group in 1998 and has extensive management experience in sales, marketing, market management and after sales in the commercial vehicles division. “Till Oberwörder is a proven expert in commercial vehicle sales and marketing. In his three years at EvoBus he has played a major role in ensuring successful sales at Setra and MercedesBenz – and in division’s turnaraound as well”,
Hartmut Schick, Head of Daimler Buses, has said. “Till Oberwörder has also successfully prepared Daimler Buses’ global Sales and After Sales organisation for the future. His international experience in bus and truck sales and marketing makes him an ideal candidate for continuing his predecessor’s successful work”, Schick added.
Harald Krüger At The Helm Of Bmw Management Board
H
arald Krüger assumed the role of Chairman of the Board of Management of BMW AG at the end of the Annual General Meeting in Munich on May 14, 2015. He was the Board of Management member for Production. Krüger, who holds an engineering degree, joined the BMW Group in 1992 and has been a member of the Board of Management since December 2008. He was head of Human Resources until assuming 12 | AutoPartsAsia | JUNE 2015
responsibility for MINI, Motorrad, Rolls-Royce and Aftersales at the end of June 2012, a position he held until moving to head of Production in April 2013. It may be recalled that the BMW Group had announced plans to initiate a generational change at the head of the Board of Management and Supervisory Board in early December 2014, in order to hand over responsibility for the future development of the company to the next generation in a timely way.
people
Lauermann To Head Volkswagen India effect from July 1, 2015. He will succeed Mahesh Kodumudi, who will move to a responsible position with Volkswagen Group of America with effect from June 1, 2015. Kodumudi will continue to act in an Advisory Role to Volkswagen Group India in the coming months.
D
r Andreas Lauermann will take over as the new President and Managing Director of Volkswagen India Private Limited with
Dr Lauermann (53) holds a doctorate degree from the University of Passau and Technical University Munich. He started his career with TCW TranferCentrum for Production Logistics and Technology Management in Munich before joining Volkswagen AG in 1997. After holding lead positions in Industrial Engineering with
Volkswagen, Wolfsburg; Autoeuropa, Portugal and Volkswagen Commercial Vehicles, Hannover, Dr Lauermann moved to Volkswagen Argentina in Pacheco in 2007 as General Manager of the RPU Division. In 2010 he took over the lead of Central Industrial Engineering and Optimization of Indirect Areas of the Volkswagen Group and in 2012, he took charge as the Head of Central Planning for FAWVW in China. He returned to Volkswagen, Wolfsburg at the beginning of 2015 in the Area of Central Group Production Strategy and Planning. Mahesh Kodumudi (49),
who holds Engineering and Management degrees from India and the USA, has led Volkswagen India Private Limited since March1, 2013. After a successful career in the Automotive Component Industry, he joined the Volkswagen Group in 2008 and in the same year he was appointed Executive Director – Corporate Purchase, Volkswagen India Private Limited. Besides his responsibility as President & Managing Director at the Indian production company of Volkswagen in Chakan, Pune, Kodumudi became Chief Representative of Volkswagen Group India in March 2014.
Martin Lundstedt Appointed President And CEO Of The Volvo Group Executive Officer of the Volvo Group. Martin Lundstedt will assume his position in October 2015. His most recent role is as President and CEO of the Scania Group. Jan Gurander, the Group Chief Financial Officer, will be acting President and Chief Executive Officer in the interim.
T
he Board of Directors of AB Volvo has decided to appoint Martin Lundstedt, 47, as the President and Chief
“After three years of focus on product renewal, internal efficiency and restructuring, the Volvo Group is gradually entering a new phase with an intensified focus on growth and increased profitability. This will be achieved by further building on our leading brands, strong assets and engaged and skilled employees all over the world“, says Carl-Henric Svanberg, Chairman of
the Board of AB Volvo. “Martin Lundstedt has 25 years of experience from development, production and sales within the commercial vehicle industry. He is also known for his winning leadership style.” As of April 22, 2015, and until Martin Lundstedt assumes his new position, Jan Gurander, the Group Chief Financial Officer will be acting President and Chief Executive Officer of Volvo. Martin Lundstedt will replace Olof Persson who has led the Group for almost four years. “Olof Persson has with energy and determination carried out an extensive change of the Volvo Group,” says Carl-Henric Svanberg. “He has focused Volvo on commercial
vehicles and sold unrelated businesses and assets to a value of over SEK 20 billion. He introduced a functional organization and paved the way for cost savings of SEK 10 billion. He also concluded the agreement with one of China’s largest truck manufacturers, Dongfeng and led the company during the largest product renewal in the Group’s history. Today the Volvo Group is considerably better positioned to compete for leadership in our industry.” Martin Lundstedt has spent his career at Scania. He joined in 1992 as a trainee after obtaining an MSc in Industrial Management and Technology. He has held a number of executive positions. AutoPartsAsia | JUNE 2015 | 13
people
Meritor Names Ivor Evans Executive Chairman, Jeffrey Craig As CEO
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he Board of Directors of Meritor, Inc. has announced that Ivor J. (“Ike”) Evans, Chairman of the Board of Directors and Chief Executive Officer, has been appointed to the role of Executive Chairman. Jeffrey A. (“Jay”) Craig, President and Chief Operating Officer, succeeds Evans as Chief Executive Officer and will remain President. Craig has also been appointed to the Board of Directors. These changes were effective from 29 April 2015. “Under Ike’s leadership, Meritor has made significant progress toward the execution of its strategic vision and we are pleased that he will remain
actively involved in the Company’s leadership as Executive Chairman,” said William R Newlin, Meritor’s Lead Independent Director. “We are enthusiastic about Meritor’s prospects for continued growth and shareholder value creation as we work to extend the Company’s positive trajectory and achieve M2016 goals.” “We have made tremendous progress in advancing and executing our M2016 strategy,” said Evans. “It has been a privilege to serve as Meritor’s CEO, leading an incredibly talented global team in the Company’s transformation. Succession planning has been a priority of mine during my
tenure as CEO, and the Board and I agree that now is the right time to name Jay as Meritor’s next CEO. I look forward to remaining actively involved in the company and working closely with Jay and the rest of the management team in my role as Executive Chairman.” “I am honoured to succeed Ike as Meritor’s CEO,” said Craig. “With an experienced leadership team and 9,000 hardworking and dedicated employees around the world, Meritor is well positioned to capitalize on numerous growth opportunities that will allow the Company to remain an industry leader for years to come. I look forward to
continue building Meritor’s customer relationships, investing strategically in our product portfolio and maintaining operational excellence as we grow our core business.” Craig continued, “I would like to thank Ike, who has been an important mentor to me in our pursuit of excellence. I am pleased to have his continued support and guidance in his role as Executive Chairman.” As Executive Chairman, Evans will report directly to the Board of Directors, have responsibility for the general oversight of the business, work closely with Craig on key business decisions and set the strategic direction of the Company.
Cooper Standard Appoints Frisbie As Vp For Na Operations
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ooper-Standard Holdings Inc., the parent Company of CooperStandard Automotive Inc. has announced the appointment of Ronald A Frisbie as Vice President of North American operations effective May 4, 2015. In his new position, Frisbie will oversee the Company’s North American operations. Frisbie will report to Bill Pumphrey, senior vice president and president of North America, and will be based at the Company’s North American headquarters in Novi, Mich. Frisbie replaces Michael Summers who was appointed to a newly
16 | AutoPartsAsia | JUNE 2015
created position of Vice President of operation excellence. Summers will be responsible for the implementation of best business practices across Cooper Standard’s global organisation, driving standardisation, and optimising the company’s capital investments and inventory levels. Summers will report directly to Keith Stephenson, Chief Operating Officer. “As a seasoned operations executive with more than 35 years of diverse product, process and lean experience, Ron will make a great addition to the Cooper Standard executive team,” said
Pumphrey. “His skill set and impressive track record will help us further improve and innovate our business systems and continue driving our commitment to worldclass global operations. We are also pleased to announce Mike’s new position, as he has made significant progress in our North American operations and we are excited to have him oversee the Company’s best business practices across our global footprint.” Frisbie brings extensive operational expertise, including more than 20 years of automotive industry experience, to
his new role at Cooper Standard. At Visteon Corp., he held various director positions in a number of business units, most recently serving as the director, global total value management. Earlier, he spent 21 years at Ford Motor Co. where he held progressively responsible roles in the United States, Canada, Mexico and England. Prior to his departure from Ford, he was responsible for all aspects of a Shingo Prize winning UAW plant and achieved record level improvements in cycle time and cost reduction through lean manufacturing techniques.
LAUNCHES
Terrano Groove From Nissan
who like their cars to reflect their dynamic lifestyle. We are confident that the new additions will make the vehicle even more appealing to them.”
APA Bureau
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issan has launched the new Nissan Terrano Groove limited edition in India. Targeted at the lively, youthful and lifestyle-conscious customers, the new Terrano Groove comes with an upbeat music experience courtesy of high-end audio, enhanced in-car ambience and distinctive exterior touches. The Groove will be made available in Terrano XL (O) grade, and will be limited to 250 units. The car comes with benefits worth Rs 30,000 at zero additional cost. The vehicle is priced at Rs 11,45,123, ex-showroom Delhi.
The limited edition builds on the vehicle’s persona of a bold, stylish and powerful compact SUV, expressing the dynamic lifestyle of today’s spirited Indian consumers. The key highlight of this limited edition is the addition of precision speakers by Rockford Fosgate, one of the leading brands in highperformance in-car audio. The premium interiors become even more dynamic thanks to the ambient lighting, which
sets the right mood for any type of music. This exclusive edition also comes with branded fabric mats and upmarket LED scuff plates on the doors. Commenting on Nissan’s latest limited edition, Guillaume Sicard, President, Nissan India Operations, said, “The Terrano has established itself as a stylish premium compact SUV, which is equally at home in the outdoors as it is in the urban cityscape. With the Groove edition, we want to reach out to individuals
To mark the launch of the vehicle, Nissan also announced a new advertising campaign featuring Bollywood actor Sushant Singh Rajput, who will star in a ‘groovy’ television commercial based on music and dance. Speaking on the association, Arun Malhotra, Managing Director, Nissan Motor India Pvt Ltd, said, “With the Groove edition, we wish to target younger customers and opted for an energetic campaign around contemporary music and dance.’’
Saluto, New Yamaha Motorcycle For The Family
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ndia Yamaha Motor Pvt Ltd (IYM) has launched its new offering, ‘Saluto’ recently. The 125cc bike, designed on the concept of `Economical and practical Indian family motorcycle’, is being sold by YMIS (Yamaha Motor India Sales Pvt Ltd). Priced at Rs 52,000 ex-showroom Delhi, Saluto boasts of a mileage of 78 kmpl.
The lightest vehicle in its class, the new model is powered by a new engine with a more compact combustion chamber than the previous 125cc models released by the company. The thoroughly-lightweight design improves fuel economy by approximately 10 percent as compared to the company’s previous models in its class. Catering to the needs of the Indian market, where carrying a pillion passenger is frequent, the new Saluto’s suspension, footrests and seat are set
up to enhance comfort. The new model has a resin tank cover, which adds to the motorcycle’s dynamic styling. “The two wheeler market in India reached 16 million units in 2014, thereby, becoming the world’s largest two-wheeler market. The motorcycle market constitutes about 68 percent of the total two-wheeler market at 11 million units. Out of this, the 100-125cc motorcycle class is the largest category at nine million units, comprising almost 83 percent of the market,’’ Masaki Asano, Managing Director, YMIS, has said. “This is due to the economical nature of the
category (including fuel efficiency and price) and its practicality as it is highly praised by those who purchase a motorcycle for the first time, for pillion use, or for sharing with the family. The new Saluto is intended to expand sales in the largest demand category in India by offering one of the best fuel economy performances in the 125cc class”, he said. The new offering has been designed keeping in mind the 125cc class customers’ priority to fuel economy, affordable pricing, a model with a discreet look befitting a family bike, and to the exterior with the look and feel of quality, Asano said. AutoPartsAsia | JUNE 2015 | 17
LAUNCHES
Enter Two More The aspirational young Indians will have two more small cars to choose from in the coming festival months as Tata GenX Nano and Renault India Kwid are joining the league of Maruti Suzuki Alto, Hyundai Eon and others.
Kwid - Aspirational Car From Renault India APA Bureau
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he Kwid, Renault India’s small car which made its global debut in India last month, will be launched during the festival months, SeptemebrNovember 2015. With a starting price of Rs 3 lakh, Kwid opens a new opportunity for people who aspire to a modern, robust, elegant, innovative and affordable car. Being manufactured in the company’s plant in Chennai, it will be launched outside India also. Focus will be on Indian and the South Asian markets. Kwid, having SUV style construction, shows Renault’s ability to develop vehicles that make everyday life easier by meeting the needs of customers looking for a stylish vehicle that is robust and easy to drive. Its design and innovative features are poised to play an important role in Renault’s ongoing expansion in India. “With Kwid, Renault continues to pursue its strategy of accessible mobility for all to step up its international growth. Using a new Renault-Nissan Alliance platform and following the trail blazed by the Duster, the Kwid will enable Renault to continue its expansion and address the needs of customers who want a vehicle that is stylish, robust and easy to use,” Carlos Ghosn Chairman and Chief Executive Officer of Groupe Renault, has said. Kwid is the first Renault-Nissan Alliance model to use the very flexible CMF-A platform. The 800cc car is adapted to the specific 20 | AutoPartsAsia | JUNE 2015
needs of markets like India and will enable Renault to push ahead with the deployment of its international expansion strategy. The process of development of Kwid made use of resources and staff in France, Japan, Korea and India. Supplier sourcing in India has been raised to 98 per cent, including 60 per cent in the Chennai region, a company release has said. The Renault Group is active in 125 countries and is pursuing its strategy to build vehicles close to its markets with 36 production sites and more than 12,000 points of sale worldwide. With five design centres around the world (France, Brazil, Romania, Korea and India), the Group takes into account local parameters when designing and adapting its products to meet specific requirements, such as colours and materials. India is one of Renault’s priority markets, along with Russia, Brazil and China. With a staff of more than 12,000, the Group has a strong local base here enabling it to adapt
more effectively to local realities and requirements. Renault’s ambition is to increase its share of the Indian market from two percent to a mid-term five per cent. More than ever, the emerging young middle classes see mobility as a way to escape the constraints of the public transport system, gain a degree of freedom, display their social success and have a safe means of transport for their family. In a market where the A2 and A3 segments account for the bulk of sales (the A segment currently accounts for more than 30 per cent of retail sales), a growing number of customers are keen to own larger, higher-end models. Against a backdrop of rapid urban development, customers in India are looking for more connected, sophisticated cars that are reassuring and designed for family use. The Kwid meets these requirements.
Small Cars since April 2015. Through this, the owners were offered the best market price for their old Nanos and a special bonus of Rs 20,000. The Nano customers could also enroll into a referral programme, through which they were being awarded a cash prize of Rs 5,000 for every referral.
DriveNext The new range of GenX Nano has five variants, three with a four-speed manual transmission (XE, XM, XT) and two (XMA, XTA) with a five-speed AMT gearbox which is branded as ‘Easy Shift’ AMT. It has an option of ‘Sports’ mode for performanceoriented drivers. For ease of maneuverability in heavy traffic and during parking, ‘Easy Shift’ AMT comes with an in-built ‘creep’ feature, which helps the car crawl as soon as the pressure is eased off the brake pedal, without pressing the accelerator.
GenX Nano Drives In As Smart City Car APA Bureau
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ata Motors Ltd has launched an all-new GenX Nano range, a new compact, feature-rich hatchback for the trendy, youthful, bold and stylish customer. Available in all the 450 Tata Motors sales outlets, the GenX Nano has advanced technological features that make it the perfect city car. With a starting price of Rs 1.99 lakh, this smart city car is available in manual, and automated manual transmission (AMT) variants. Price goes up to 2.89 lakh (ex-show room Delhi) depending on the variant. The GenX Nano also comes with low cost of ownership with a warranty of 4 years or 60,000 km and fuel efficiency of 23.6 Kmpl and 21.9 Kmpl, for manual and AMT variants, respectively. According to Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors Ltd, the GenX Nano has put India on the world motoring map by demonstrating innovation and frugal engineering. It is an important brand in our passenger vehicle portfolio
and Tata Motors has been constantly evolving the product to deliver the most relevant city car features like easy shift, sporty integrated tailgate spoiler, power steering, the hatch access, bluetooth connectivity and so on, for the Indian market. He said the new GenX Nano was a smart, stylish, efficient and a practical city car which has strong potential in the compact hatch segment. “After Zest and Bolt, GenX Nano is our third offering under Horizonext and we continue to reach out to our customers with feature-rich products that offer best-in-class technology and design engineering,” he said.
GenX Marketing For GenX Nano, the company has a well-rounded micro-marketing strategy to cater to three broad groups, identified as the key Nano customers: the first-time buyer, the additional car buyer and the replacement car buyer. Tata Motors has also tied-up with financial partners for attractive interest rates on car loans. The company has been having an exclusive and exciting campaign
The new range comes with advanced structural stability and offers safety features like crumple zone to cushion frontal impact, reinforced body structure for enhanced frontal crash safety, robust side doors with intrusion beams for side crash protection, anti-roll bar for high speed stability and SUV-like ground clearance of 180 mm to tackle those rough patches on Indian roads.
ConnectNext Aimed at the youth, the GenX Nano comes loaded with connectivity features -- four speakers with surround sound effect mated to AmphiStream music system. The car also has digital information display with features like average and instantaneous fuel consumption, distance to empty, and gear shift indicator. Tata Motors has also introduced a wide range of specially-designed GenX Nano accessories like Door Visors, Sunroof, Art Leather Seat Covers, Decals, Body kit, Reverse Parking Sensors, Remote Controlled Hatch Release etc. AutoPartsAsia | JUNE 2015 | 21
COrpORate
Stanadyne Amalgamations Launches New Diesel Pump
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tanadyne Amalgamations Private Limited, a 65:35 joint venture between USbased Stanadyne and Amalgamations group, has launched a new diesel fuel injection system for the off-road segment that will allow manufacturers to develop engines with reduced emissions in the 2017 timeframe. “This technology will have a significant impact on under-50 HP engines, the largest segment of off-road engines. They account for nearly 80 per cent of off-road vehicles including tractors, generators and construction machinery and an even larger proportion of particulate emissions. Stanadyne’s new solution can be implemented in the nearterm without affecting the cost of ownership’’, Dr John Pinson, President and CTO, Stanadyne said. Stanadyne Corporation, USA is a pioneer in the development and manufacture of diesel fuel injection systems. The joint venture has a state-of-the-art facility to manufacture fuel injection pumps, injectors and fuel filters at Thiruvallur near Chennai and is supplying to Indian customers and also exporting to USA and Europe. Stanadyne, which has been in India since 2001 with its partner Amalgamation Group, manufactures mechanical pumps, fuel injectors, integrated fuel systems and mono block pumps for the off-road segment. It recorded a turnover of Rs
24 | AutoPartsAsia | JUNE 2015
170 crore in fiscal 2014-15 and aims to double it by 2017-18, primarily through new markets, new products and new customers. In India, the company’s key clientele include Mahindra & Mahindra, Greaves, Cooper Corporation, Ashok Leyland, John Deere, TAFE, Kirloskar Engines, JCB and Cummins India. The new product has been fully developed by Stanadyne’s engineering team in India with 90 percent localisation. The company will produce the new injection system at its Chennai plant. Current annual capacity is 90,000 pumps and Stanadyne aims to increase this to 250,000 units in the next two years with an investment of Rs 100 crore. The company has also applied for a global patent. Earlier, the company has been producing injection systems for category above 50 HP diesel engines. These are engines used for tractors, generators and construction equipments. Exports account for 40-45 percent of its total volume to Europe, US and South America. “In the organised market of five lakh engines per year, 80 per cent is in the sub-50 HP category. Our new pumps will provide eight per cent higher fuel efficiency compared to the existing products in the market. This will translate into Rs 14,000 to Rs 15,000 savings on fuel per year. It will also cut the quantum of particulate emission by half,” Sanjay Chadda, managing director, Stanadyne India, has said. As per studies, diesel engines are a leading
New fuel injection system - developed by Stanadyne’s engineering team in India
contributor to air pollution in India. Particulate levels have grown 40 per cent in major cities across the country in the past decade. The new fuel injection system is an innovative step forward for lowering the emissions on the majority of off-road engines. It aligns with an emissions policy that will be ready for the fuel change coming in 2017. It would give engine manufacturers the bridge they need to implement more sophisticated technology; it will translate to a lower cost of ownership for the consumer while delivering enhanced utility and engine function, it gives policy makers the opportunity to act and it will have a positive impact on the environment through lower emissions, a release from the company has said. “To have a meaningful impact on air quality, regulators need to focus their efforts on engines under 50 HP. Nearly 80% of all diesel engines in India are in this segment and it is historically behind in regulation globally,” Dr Pinson said.
The country-wide introduction of lowsulphur diesel and upgraded gasoline fuels in 2017 is a positive step towards enabling engine manufacturers to implement new technology for lower emissions. The new fuel paves the way for more sophisticated fuel system and aftertreatment technology that will significantly reduce the pollution generated by both on-road and off-road engines. India now has the opportunity to regulate for positive environmental change and reduce air pollution by introducing new emission norms. Automotive and lightduty on-road vehicles are anticipated to make the transition to BS IV countrywide with the introduction of reduced diesel sulphur fuel in 2017. Looking to other regions of the world, off-road engines typically require more time than on-road vehicles to adapt to lower standards; however, forward progress on improving emissions for off-road engines is possible in the near-term with an evolution of readily available technology.
COrpORate
Spark Minda In Asean
A Daring Step And Dazzling Results By T Murrali
A
strategic and daring decision by Spark Minda of the Ashok Minda Group to set up a green field manufacturing facility in Indonesia a decade ago has produced amzing results. This state-of-the art facility is its manufacturing hub for the fast expanding ASEAN market. Now the Spark Minda Group has emerged as name to reckon with in the auto parts trade and industry in South East Asia and beyond. It also brings OE orders from several countries to the parent group in India. Spark Minda conceptualised the project - PT Minda Asean Automotive, in October 2004 and it commenced commercial production from October 2005. In 2013 it set up its new facility as PT Minda Automotive Indonesia (PTMAI) and for the past couple of years it has been the growth engine of Spark Minda. The company that began catering to the security systems needs of the local OEMs, consistently increased volumes and expanded products portfolio. Now the parent company receives orders for products developed by PTMAI and its sister company in Vietnam. The Indonesian operations have become pivotal to Spark Minda’s overall growth and development. The Business Head, ASEAN, Sandeep Aggarwal, told
AutoParts Asia that Spark Minda’s ASEAN manufacturing operations have been strategically positioned near the automotive hubs in Jakarta, Indonesia, and Hanoi in Vietnam. The business is carried out through separate operating companies, PTMAI, and Minda Vietnam Automotive Company Limited (MVACL). As part of its strategy to expand its business operations to OEMs in Thailand, the Vietnam wing has established logistics and warehousing facilities there. Though application engineering is done at the respective plants, they are backed up by the R&D capabilities of Spark Minda in India. Both the plants in ASEAN make 2-wheeler security systems including lockset, wiring harness and driver information systems like speedometers. They are supplied to Kawasaki, Suzuki and Yamaha. In a short span, the ASEAN ventures started to acquire the renowned OEM customers from this region. Exports are expanded to Japan, Malaysia, Vietnam, Philippines, Singapore and Thailand in ASEAN and to Brazil in South America. Plans are under way to manufacture other products made by the parent group. “Last year we decided to diversify into the development of Spark Minda’s another product line which is wiring harness,” Aggarwal said. The AutoPartsAsia | JUNE 2015 | 25
COrpORate
group has been into wiring harness business for quite some time. MVACL made investments and installed the machinery last year. Based on the orders received from Piaggio in Vietnam, it has started supplies from this year. The specialty of the product mandated by Piaggio is that it is a wiring harness for fuel injected vehicles with water proof connectors. So Piaggio, Italy, has classified Spark Minda Group as a potential supplier and has now placed orders for wiring harness on its parent company in India. Apparently the satellite plant in Indonesia has become a propelling force for the group in India to get RFQs from global OEMs. This is because of the group’s strategic initiatives taken about a decade ago in setting up the plant in the ASEAN region. “It is thanks to our synergy of manufacturing at multi-locations (countries) we are able to target the global platforms which reduces the investment cost for our Global Customers,” Aggarwal said. Spark Minda’s manufacturing facility in Indonesia is bigger than that in Vietnam. With the increasing labour cost in Indonesia, the group is strategically positioning labourintensive products for ASEAN customers in Vietnam where the wages are in tune with India. Since wiring harness is a labour-intensive product, the company is setting up manufacturing lines for it in Vietnam. Though limited automation is possible through conveyors, manpower is required as it is a unique part that is very intricate, contributing to the safety of the vehicle. 28 | AutoPartsAsia | JUNE 2015
Speedometer from Suzuki, for its scooter -Address.
“We have decided to manufacture and supply wiring harness to all the customers in ASEAN from Vietnam. Thus, by operating in two countries in ASEAN, we can leverage the benefit of each location and ultimately cater to the customers in the world’’, he said.
Indonesia PTMAI began its innings by making lock sets, otherwise known as the main switch or key set, for twowheelers. To cater to the demand of the customers and trend of using ‘Magnetic Shutter’ as additional security, the company’s R&D in India innovated to the development of new and unique products. Now it holds a few patents in ASEAN. Thus it has prepared the parent group ahead of the demand for them in India, and maintains the lead in the markets it is already in. “The year 2014 was very significant for PTMAI, as it added a new product line of Speedometers in ASEAN. Keeping in line with our product range in India we developed fully digital / electronic speedometer for Kawasaki for its global model Ninja RR mono 250 cc being manufactured in Indonesia. The company received further business of mechanical
“Currently we are trying to diversify into the four-wheeler customers in ASEAN and for all products of the group,” he said. Spark Minda group is already supplying speedometers to Volvo Thailand from India.
Strategy PTMAI’s speedometer business in ASEAN is supplied through the Indonesian plant but is manufactured by the mother unit in India. It has plans to localise some of these products in Indonesia. Eventually PTMAI will start manufacturing speedometers, which is expected to raise the comfort level of the customers. Alongside it will help Spark Minda achieve its ultimate goal of establishing all the product lines in ASEAN. “Now we have plans to localise the Speedometer in a phased manner. And we will have complete set up of manufacturing facilities in ASEAN in the coming years. We are not confining to the two-wheeler market. We will diversify our products to four-wheeler customers as well,” Aggarwal said. Spark Minda already has a joint venture with Furukawa Electric Company for wiring harness for four-wheelers. It has another joint venture with Stoneridge of the US for speedometers & sensors and with Silca of Italy for keys.
Multiple Product Portfolio Spark Minda makes several product lines including Safety, Security & Restraint Systems, Driver Information & Telematics System, Interior System and Aftermarket. Under Safety, Security & Restraint Systems the group makes electronic & mechanical security systems, e- bike controllers, immobilisers, latches, striker, door handles, electronic body controllers, start systems, power closure systems, passive entry systems; keys (mechanical & electronics), key duplicating machines and die casting - zinc, aluminum & gravity.
Under Driver Information & Telematics division it makes instrument cluster, dashboard assemblies, digital clocks, tank units & gauges, chime bells & relays, speed sensors, temperature sensors, position sensors and pressure sensors. It also makes wiring harness, coupler & terminals, relay & junction box, and steering roll connectors. In the Interior System division, Spark Minda manufactures injection moulding, 2k moulding process, kinematic component & premium surfaces, garnish & trims, dashboard, consoles, parcel shelf, air vent, air duct, ash tray,
arm rests, and cup holder, glove box, truck oil housing, cylinder head covers, rear sheet structure, coupling, transmission, coolant tanks, interior steering, and tool production. For the Aftermarket division the group makes all the products that it markets. In addition it makes some specialised products for fourwheelers such as gear shift locks, wiper blades, auto rollup relays filters (for tractors). For 2-wheelers it makes wheel locks, helmet locks, control cables, CDi, regulators, rectifiers, ignition coil, igniters, relays, and filters.
Yamaha PTMAI gets about 80 percent of its revenue from Yamaha in Indonesia. From this year it has commenced supplies to Yamaha Brazil. “We are going to supply to Yamaha Thailand in 2015. The products that we are developing will not only cater to Yamaha in Indonesia but to its plants in other locations also. The same vehicle will be manufactured in two more locations including Thailand,” he said.
Kawasaki The Japanese two-wheeler maker Kawasaki has miniscule volumes in Indonesia. MVACL supplies to Kawasaki Thailand and the vehicles reach Indonesia as CBUs. Besides, it is supplying to the OEM in Brazil and Philippines. Kawasaki Japan has also started manufacturing the same vehicle. It is sourcing products from MVACL and has decided to keep Vietnam as the manufacturing hub for Kawasaki.
Suzuki Yet another Japanese company Suzuki has manufacturing plants in Indonesia, Vietnam, Thailand, Malaysia and the Philippines. Since many of the parts used by the different manufacturing units are common, PTMAI’s supplies form part of the Suzuki’s CKD kits sent to various markets in ASEAN. This is how it reaches the OEM in the region.
Currently it meets about 35 percent of Suzuki’s ASEAN requirements of the products it supplies. PTMAI is developing a new magnetic shutter module for Suzuki in Indonesia. As this is planned for the global model of Suzuki, the share of business will more than double to 80 percent. It is primarily because PTMAI, along with Spark Minda’s India R&D, could evolve a concept that was being sought after by Suzuki, at a competitive cost. The new product will be on the production line next year.
Piaggio Piaggio has its presence only in Vietnam for the ASEAN region.
MVACL supplies lock sets to the OEM that had been supplied by Spark Minda from India to Piaggio in Italy. Piaggio makes Vespa and Liberty range of scooters with many variants. Vespa accounts for about 70 percent of the OEMs product portfolio with the major portion of the remaining numbers by Liberty platform. MVACL holds 96 percent of the business from the Italian OEM’s plant in Vietnam. Honda is the market leader in ASEAN and Aggarwal says that ”it will take some time to enter the OEM though we have all the products, technology and the process capabilities for that. We are the suppliers to Honda in India but the competition scenario in ASEAN is different”. AutoPartsAsia | JUNE 2015 | 29
32 | AutoPartsAsia | JUNE 2015
interview
Auto Component Industry Can Definitely Become An Engine Of Growth: Ramesh Suri Auto Component industry has been facing difficult times for quiet some time. There were some positive trends in the early part of the last fiscal but were not consistent for all the segments. In this scenario, is it possible for the industry to achieve its goal of reaching USD 100 billion by 2020? The President of Auto Component Manufacturers Association of India (ACMA), Ramesh Suri tells T Murrali that he is confident of achieving the goal. Edited excerpts:
Q
: It is almost a year since the new government took charge at the Centre – what changes the auto components industry had seen during this time? Suri: First and foremost, the Government, especially the Prime Minister, needs to be congratulated for instilling confidence in the industry and the investors; in less than a year the Government has announced various policies and initiatives, which have enthused the entire industry. The ‘Make in India’ campaign launched by the Prime Minister has not only boosted India’s image globally but is also expected to encourage manufacturing and investments into the country. Some of the positive measures announced in the union budget include allowing 20 per cent additional depreciation on new plant and machinery as against 10 per cent, setting up of an electronic Trade Receivables Discounting System (TReDS) for financing of trade receivables of MSMEs to improve the liquidity in the sector and the intent to implement GST by next fiscal. Moreover, the budget also announced enhancement of time limit for taking CENVAT credit on inputs and services from six months to one year. That apart, reduction in rate of income tax on royalty and fees for technical service from 25 per cent to 10 per cent will enable technology absorption in the auto component sector. Additionally, the recently announced Foreign Trade Policy 2015-20 is a pragmatic and progressive one. The component industry welcomes the focus given towards consolidation of various export schemes in the policy as also the further simplification of procedures to help integrate India into the global value chain, improving ease of doing business index through online and
e-governance interventions and reducing the transaction cost in international trade. It has also provided the much-needed framework to enhance export of goods and services as well as generate employment. Moreover, a significant number of tariff-lines of auto components have benefitted under the new policy compared to the earlier. Q: Has the worst time gone? Is it the time for the industry to get in to the growth trajectory? Suri: Overall, we feel that at a macro-economic level the government is making concerted efforts to bring in growth and stability. Going forward the component industry is confident of better prospects as growth is expected to pick up in second half of FY16 and beyond into FY17. Further, growth seems to be returning to the automotive industry and it is time for the component industry to start preparing for the next growth cycle. Q: Are you sure that the auto component industry will scale up to reach USD 100 billion by 2020? Suri: We strongly feel that given a stable policy regime, the component industry will be able to reach the mark of USD 100 billion by 2020. The industry clocked a turnover of USD 35 billion in FY13-14, despite a slow down in the domestic market while the CAGR continues to be a healthy 14 percent over the last six years. Exports grew to USD 10.2 billion and account for 29 percent of the industry turnover; moreover the exports have grown at 14 percent in the first nine months of FY 201415, scaling 8.42 billion USD despite the slack in the domestic market. The latest figures published by the vehicle industry body SIAM are indicative of the fact that the industry will be soon on the growth AutoPartsAsia | JUNE 2015 | 33
interview
From the above it is evident that growth will be driven by both the domestic market as well as by exports. ACMA firmly believes that with favourable and stable government policies auto component industry can definitely become an engine for India’s economic and manufacturing growth.
CAGR 2009 - 14 CAGR: 14% (2009 - 14)
2500 Turn over in INR’ 00 Crore (USD Billion)
path; in FY 14 -15, production of Twowheeler and Three-wheeler registered a growth of 9.58 percent and 14.33 percent respectively while that of passenger vehicles grew by 4.28 percent. The commercial vehicles sector, which has been a cause of concern, is expected to bounce back soon with production of M&HCVs recording a robust growth of 21.12 percent during the last fiscal.
35.9%
2000
500 500 0
2117 (35.1)
30.0%
1883 (41.3)
25.3%
1500
40.0% 2160 (39.7) 2046 (42.2)
20.0%
1386 (30.8) 1106 (24.1)
8.7% 1.2%
2008-09
10.0%
5.6% -2.0%
2009-10
2010-11
2011-12
2012-13
2013-14
0.0% -10.0%
(Turnover includes supplies to OEMs, aftermarket sales and exports)
Latin America
Q: To reach USD 100 and the Africa: billion do you think a new Carribean: 1.21% 0.90% cluster of auto components Oceania: manufacturing will emerge 0.90% North America: in addition to the existing 6.46% four –NCR, Bangalore/ Chennai, Pune and Sanand? Suri: In the long run it is Europe: 34.01% likely that these four hubs will be saturated, and we would need newer hubs. It is indeed very encouraging that Asia 57.23% state governments like Tamil players offer technology Nadu, Karnataka and Andhra in a significant way to Pradesh have announced other nations, at least to dedicated automotive policies, emerging nations, to start while some of the others such with? as Uttar Pradesh are working with ACMA for their automotive Suri: The automotive market - world policy. This is indicative of the fact that over is intrinsically dynamic and so are states are also readying themselves for future the needs of its customers. The last three to industrial development. five years have seen a systematic shift with organisations focusing more on engineering, Q: India has transformed from a lowdesign and technology; with innovation cost manufacturing base to competitive management being the most critical element. cost manufacturing base – what are your observations on this transformation? While Indian component manufacturers are just starting to make the transition from builtSuri: It is heartening that we have graduated to-print to design, they have started to realise to an extent and are cost competitive due to that focus on technology can be leveraged our inherent strengths of frugal engineering; for competitive advantage. The industry is we, however, are still in the ‘build to print’ ambitious to graduate to its own product mode and need to transcend to the ‘art to designs and IP. part’ mode. The latter will require the industry to build a culture of R&D and innovation. This Q: How is the relationship between OEMs will also require the relation between Indian and vendors – is it still transactional or suppliers and their customers to transform moving towards collaborative? from transaction based to a more symbiotic Suri: There is an interdependent and healthy one, which requires a lot of hand holding. relationship between OEMs and auto Q: I agree, but I could see few players component suppliers in India. OEMs have graduating from ‘print to part’ stage to handheld the component suppliers and ‘concept to part’ – when do you see our continue to do so as Indian components 34 | AutoPartsAsia | JUNE 2015
Turnover - Auto Component Industry: 2009-14 12
8 6 4 2 0
Growth Rate
(USD Billion)
10
Q: Can you update us on the Skill Development initiatives CAGR: 15% (2009 - 14) that ACMA has taken with 10.2 9.7 ASDC? 58.6% 8.8 60.0% Suri: The Automotive Skill Development Council - ASDC was set up jointly by ACMA, 6.66 32.3% SIAM, FADA under the aegis 30.0% 5.1 of the NSDC. The ASDC 9.9% 13.3% 4.2 envisions to train 20 million 5.4% personnel in the next few 0.0% years. So far the progress is satisfactory; it has worked -17.6% judiciously towards developing -30.0% the National Operating 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Standards (NOS) which are the basic standards for Latin America skilling. Curriculum for various and the Africa: training programs have been designed Carribean: 7.35% 7.11% and accreditation of institutions to Oceania: offer training programs is on the 0.88% North America: way. Till date around fifty thousand 21.39% candidates across various traits have been certified. ASDC is now in the process of setting up a mechanism Europe: 38.11% to consolidate the database of the candidates who graduate out of these training centres so that companies can easily access the pool of trained Asia 25.16% people.
90.0%
industry evolves into a world class industry. However, on the global front Indian suppliers need to build and strengthen functional capabilities across operations, R&D, supply chain, engineering support, servicing and marketing & sales. Additionally, they may also require certain enablers to help them achieve their goals across organisation, risk management, cash flows and performance management. Q: FTA with EU has been surfacing again and again – What is your view and tell us about the preparations taken by ACMA? Suri: We have raised the matter with the government, as the pact with the EU is not conducive for the auto industry at large. FTAs that we have signed in the past are with countries that have relatively lower tariffs than India such as Japan, Singapore, Malaysia and South Korea. As a result, it gives advantage to these countries rather than to India. Some of the existing trade agreements have also resulted in inverted tariff structures with basic raw material at higher rate of duty and the finished component at lower.
Q: About ACMA’s Long term and short term plans? Suri: I would like to see ACMA taking forward the agenda of developing the Indian auto component industry into a globally competitive one through interventions that improve the efficiency of member companies, accelerate the industry’s journey on the road to development of newer technology and products, help Indian suppliers achieve economies of scale on logistics by facilitating setting up of shared infrastructure, establish networks and syndicating research to establish a continuous flow of updated information and in-depth global industry related knowledge for member companies and most importantly help up gradation of Tier 2s/3s, the weakest link in our value chain. Apart from this I would like to encourage young leaders to take on greater responsibilities at ACMA as they possess vibrant ideas and are ready to innovate and experiment. ACMA envisions that by 2020, the component industry will be over USD 100 billion in turnover, with exports around USD 30-40 billion and turnover from overseas assets of Indian component manufacturers crossing USD 20 billion. AutoPartsAsia | JUNE 2015 | 35
interview
Our Presence Will Enhance Image And Reputation Among Oems In India And Abroad Halla Visteon Climate Control (HVCC), a full-line supplier of automotive thermal management solutions, has recently commissioned its new plant in Sanand in Gujarat to support the company’s growing business with global vehicle manufacturers and cater to the requirements of OEMs in western India. Amit Gupta, Director – Global Opex System and MD, HVCC Bhiwadi and Gujarat, spoke to T Murrali on the plans for the company going forward. Edited Excerpts:
Q
: First of all let me congratulate you on the inauguration of the new plant in Sanand? Can you please take us through the journey of this plant’s evolution? Gupta: Since some of our customers moved to Sanand, we also decided to localize some of our products at Sanand to support them. So in 2012 we decided to construct this plant and have invested in 11 acres of land from GIDC for this plant. I am happy to say that in spite of many logistical and manpower challenges, we ensured to complete the plant before schedule and be ready for customer launches. Also we achieved this without any safety incidence clocking around one million manhours.
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Q: How this plant will enhance the image of your company in India and abroad? Gupta: This is our fourth plant in India. We already have plants in Chennai, Pune and Bhiwadi near Delhi. So with this plant we are now present at all automotive production hubs in India and are well positioned to support OEMs across regions. I am sure this will enhance our image and reputation among OEMs in India and abroad. The plant capacities have been planned keeping in view the future requirements of the company and the western region. Q: Tell us about the special initiatives that you have taken in the manufacturing process? Gupta: We have aligned our manufacturing process to global standards and all our Indian plants have global quality and production standards. Also we are implementing operational excellence model in all our manufacturing plants in India,
which will not only make the manufacturing process robust, but also enhance quality of our products. Further, global quality lessons have been incorporated while designing the equipment and the process incorporates a high level of fool-proofing to deliver highest level of defect-free parts. Q: How has the Shingo Silver Medallion received by your Bhiwadi plant helped in shaping up the Sanand facility? Gupta: As you know the Shingo prize is the global benchmark for operational excellence and we are happy that our Bhiwadi plant won the silver medallion in 2013. This has given us motivation to implement the Shingo model in all our plants, including Sanand. Q: With the new plant in place, what will be the cumulative capacity of the systems / modules that HVCC makes in India? Gupta: It is difficult to put an exact number to capacity of
a plant as variation in type & size of heat exchanger leads to change in capacity. However from bottle neck equipment point of view, furnace capacity across India is around 5.5 million heat exchangers. Q: How the Sanand plant will improve the bottom line? Gupta: We expect to improve our top line and bottom line across our locations in India going forward, as we expect that most of the western region OEMs will be supported by our plants in Sanand and Pune in near future. Q: It is said that HVCC will incorporate its standardized global manufacturing and business processes to double the capacity based on business needs – can you please elaborate? Gupta: The plant is designed based on global standards with active support from the central manufacturing. The plant will optimise the production to maximise the output with a high
Halla Visteon Climate Control plant in Sanand, Gujarat AutoPartsAsia | JUNE 2015 | 39
interview degree of quality. Provisions have been kept to expand the plant to take the capacity close to three million if need be. Q: HVCC still does not have a full-fledged research centre in India? Is there a strategy not to have one such facility in India while many of your counterparts leverage the inherent potential of the country in terms of frugal engineering and such things? Gupta: Our technology centre in Korea supports us and we do have local engineering capability at our plants in India. A fullfledged application centre is also functioning at Bhiwadi. However, a full-fledged research centre for India and South Asia is in our minds for quite some time and we are working towards enhancing the capability of our product
Engine Cooling Module
40 | AutoPartsAsia | JUNE 2015
development team including looking at the feasibility of setting up a technology centre in India. Q: Now, let me ask you on the Asian region? How has the industry been doing in this region for the last three years and how do you see this evolve in the next three years? Gupta: All markets in the region are showing sluggishness in sales. However, in terms of long term growth, this region holds lot of promise, especially India and South East Asia. I am sure vehicle sales in India will pick up in the next couple of years. Indonesia and Thailand also hold lot of promise in terms of future growth potential. In China the sales momentum will continue for many more years and Japan and Korea may stabilise going forward.
Already Asia contributes close to 50 percent of global vehicle sales and this figures are going to increase in future. Q: Where do you see opportunities for growth and how HVCC is planning to leverage it? Gupta: We see growth in India, China, Thailand and other South East Asian markets. So there are growth opportunities in geographical markets and there are opportunities in industry segments also. For example, electric vehicles may add substantial numbers to sales in Europe, US and other mature markets. Conventional vehicles will keep selling in emerging markets. We are an entrenched player in electric vehicle segment being suppliers to BMW, Tesla
Gupta: Yes customer preferences are different. Most countries prefer petrol vehicles, whereas the trend in India is towards diesel. Of late this trend is also changing in India with reduction in price gap between gasoline and diesel. Developed Asian markets like Japan, Korea and to some extend China and Malaysia have mandatory legislations for safety systems. Transmission preferences are towards automatics in these markets. India is a far cry from these markets. However automakers are addressing these challenges by building platforms and designing multiple models on one platform. This gives them flexibility and saves costs.
HVAC Module Center Mount
and some other electric vehicle makers. We hope to leverage our technology and increase the market penetration as and when the market grows. Our footprint across emerging markets like India, Brazil, China, Russia, Mexico and Thailand allows us to support OEMs in these countries in their growth plans. Q: Though quality, cost and delivery have been the key determinants to clinch business deal, what is the in-thing that helps HVCC sustain the business.? Gupta: Quality, cost, delivery and product development timing are definitely key determinants and for us these are most important parameters. Our products are designed for fuel efficiency, comfort and environment friendliness and we refine product features as per local market and customer requirements. In India and other emerging markets, the AC system is an important determinant of vehicle comfort for
passengers. And you know that fuel efficiency is a very important determinant for vehicle selection here, and with the regulations becoming increasingly stricter, we have to make our products more environmentally sustainable. Q: How different are the customers in each market in Asia?
Q: Tell us about the short-term and long-term plans for your different operations of HVCC in India and Asia in general? Gupta: In India, we are now spread across all auto hubs. We are planning some expansion projects in China and in other parts of the globe like Mexico and Europe, which will take place over the next two years. We hope that we will be near to our OEMs with these expansion and will be able to offer world-class thermal management technology to our customers. Last year we took over Cooper Standard’s thermal management business. We are planning to take these products to Asia and other emerging markets and hope to ntroduce them according to market needs.
Heat Exchanger AutoPartsAsia | JUNE 2015 | 41
factory flavour
Assembling Market-Winning Strategies Into Car Production
BMW Chennai Plant
By T Murrali
M
arket is the driver for auto industry. A car is more than a utility. It is also the life style statement of an individual and often of a family. Cost is the deterrent. Combining luxury and style with lower cost has been the never-ending challenge of the car makers. The reach of this challenge, confined earlier to the entry and mid-level cars, is stretching out to the premium segments too. The enormity of the challenge becomes exasperating. Innovative companies like BMW invent strategies, like increasing the local content, to face the challenge and win the race.
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Manufacturing is an integral part of the BMW Group Production Network that includes 30 sites in 14 countries on four continents. The integration of production and logistics systems within the individual BMW Group location, to form an international production network, is a strategy in favour of the customer. The group also operates with Completely Knocked Down (CKD) kits and assemble vehicles using imported and locally- produced components. The Chennai plant of the group is similar to the Rayong plant in Thailand, following CKD path. The group’s plants in Indonesia,
Egypt, Russia and Malaysia work in cooperation with external partners. Here’s the flavour of the Chennai Plant of BMW India. The strategic localisation process was opened by the jewel of Indian cricket, Sachin Tendulkar, recently, byfixing a madein-India powertrain on to the 5-series car.
The Chennai Plant BMW Plant Chennai, in a 47-acre plot at Mahindra World City, started its manufacturing operations in March 2007. The planthas grown to a level to make up to eight car models on its two assembly lines. In a year about
Audit Bay
14,000 cars are made here with a workforce of 550 people. It has a training centre, a crèche, a fitness centre and a medical centre. At present the BMW 1 Series, the BMW 3 Series, the BMW 3 Series Gran Turismo, the BMW 5 Series, the BMW 7 Series, the BMW X1, the BMW X3 and the BMW X5 are produced here. The factory follows a well-laid out process adapted by BMW across the globe to ensure quality. However, the process sequence for the Chennai plant is specially designed to suit the models assembled here with the imported shells. The painted body of every model of the car assembled by BMW in Chennai is imported from its global plants.
Rework Facility Initially, the imported shells reach the rework facility to detect possible paint defects in transit. The rework unit also receives cars from the assembly lines if they have any defect. This facility undertakes re-spraying of paint, spot repairs, touch-up and polishing
based on the defects. It uses solid and metallic paints that are sourced from BASF. So far the plant has handled over 40 colours for the two brands, the BMW and the MINI. After inspection the shell is moved to the assembly lines.
Assembly Lines The Chennai plant has two identical assembly lines for different models. Both the lines are flexible and can assemble any model made by any BMW plant. Each assembly line has 35 stations with a minimum TAKT time of 30 minutes depending on the models.TAKT is derived from the German word, Taktzeitand TAKT time is the rate at which products or services should be produced to meet the customer demand.
Trim Line The shells, coming out of the rework facility after thorough inspection, first go to the trim line; and at the first station the VIN – Vehicle Identification Number- is punched. This is followed by adjustment of trunk lid and
bonnet. In the following station some major parts are assembled in addition to aligning the sunroof. Later wiring harness is incorporated in the shell. To facilitate putting together of the fuel tank / lines, brake lines and other under- body parts the shell of the car is tilted at the fourth station of the trim line. By this way the system takes care of the ergonomics of the operators. At station number five, floor carpet and upholstery are laid. In the next station battery, headliner, sun wiser are assembled. Assembling tail lamp and engine room processing are carried out in the following station. The cockpit that comes from the sub-assembly station, goes into the car at the next station. Centre console and foot wall(controls like clutch/ brake/accelerator pedals) panel are assembled before the car goes to the station to get the front and rear windshields assembled. The second last station gets the rear seats into the car. At the final station of the trim line the front seats and AutoPartsAsia | JUNE 2015 | 45
factory flavour doors that come from subassembly area are fixed. While at the trim line the car is moved by a ground-level conveyor, it is taken to the overhead line for assembling different modules under the shell including axles, powertrain, exhaust, front-end module with headlamps, bumper, wheels, under-body covers. Later the car is unloaded to the final line process.
Final Line At the final line the car is Legendary Cricketer Sachin Tendulkar kick- started the strategic localisation drive by assembling BMW 5 series filled with consumables like coolant oil, brake fluid besides, charging air-conditioners. The quality of a BMW car made in any the plant for quality aspects and coding process for all the electronic plant anywhere in the world will be customers’ perspectives. They are parts is done here. The final setting of the same. trained by experts from Germany, doors, bonnet and trunk lids are done who train auditors at BMW’s plants At the Chennai plant, BMW makes here. Finally the car is sent for wheel across the globe. Every year the 40 to 50 cars a day. The audit team alignment. auditors are certified twice based takes randomly selected seven to on their training. The standards that Audit Bay nine cars to the audit bay. Here the BMW follow are derived from market cars are assessed on two aspects – At the audit bay, auditors look at the research and the understanding of aesthetics and functionality; they look select samples of cars that leave the customers’ expectations. The for scratches, gap lines, parallelism of panels, flushness and how light shines on the paint work. The car is evaluated for any paint-related potential damage. The auditing of the interiors, including evaluation of the smell in the cabin, which is largely subjective, is considered to be very important. The leather used in the car should have a unique smell. The auditors check whether every car has the same, stipulated smell inside the cabin; they also check if the doors make the same sound when closing and opening. The defects detected at the audit bay are referred to the problem-solving teams daily. Besides, they are also sent to the ‘quality forum’ that has representatives of the departments responsible for assembling the cars. The auditors also check if there is any repetition of the same issue. These initiatives ensure stability in the quality of the production facility.
Dynamic Test Here the auditors look at the water tightness of the car, rattles and squeaks while driving on a corrugated surface or cobble stones. They also check the functionality of the car; all the electrically operated systems in the car is checked. Every model has a tolerance level set by Assembly Shop
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Rework Facility
along with state-of-the-art machinery and technology provide all the necessary ingredients to achieve these tough standards. The cars produced here have very strong local content. “We are confident that through our partnerships with the Indian auto component suppliers, we will set even higher benchmarks in quality standards and supply chain management,” he said. Waste management is a key area at BMW Chennai as 99.5 percent of all the waste generated at the plant during the production process is disposed of in an ecoTrim Line
the company and the auditors ensure these are in conformity with the standards. They count the defects and measure their severity. Once the car is test-driven on the test-track in the factory premises, it goes for water test and to ‘finishing process,’ where the logo is fixed. Every car goes for the final inspection and is moved to Vehicle Despatch Centre to be sent to the dealers.
Increased Localisation BMW India recently made a new start in assembling its car in the Chennai plant. The local content of components which was only 22 per cent two years ago in value terms was raised to 50 per cent. The locally-produced components include engine and transmission from Force Motors, axles from ZF Hero Chassis, door panels and wiring harness from Draexlmaier India, exhaust systems from Tenneco Automotive India, Heating, Ventilating, Air-conditioning and Cooling Modules from Valeo India and Mahle Behr, and seats from Lear India. Robert Frittrang, Managing Director, BMW Plant Chennai, said, the plant
takes pride in producing cars that have the same international quality standards as any of the BMW production and assembly facility worldwide. Highly- skilled employees, advanced manufacturing processes
friendly manner. The plant has solargenerators that support about six percent of its energy requirements. It has plans to increase the clean energy sources by installing solar panels on the factory roof. AutoPartsAsia | JUNE 2015 | 47
factory flavour
Robert Frittrang, Managing Director, BMW Plant, Chennai
Robert Frittrang, Managing Director, BMW Plant Chennai, in an interaction on the shop floor, explained the thought and technical process that went into the choice of the local vendors. He says the company’s strategy is to go slow in the local manufacturing of all parts to ensure quality and economies of scale. Excerpts:
Slow And Steady Wins The Race Q: What are the criteria to select local vendors? Frittrang:Our primary criterion in selecting any supplier is quality. Most of the selected suppliers are known to BMW for decades. Force Motors is new. We have been closely observing this supplier from the very beginning. We chose the company for its knowledge and experience in supplying to some of the premium vehicle manufacturers in India. It has in-built competence and quality that are valuable to us. The production facilityof Force Motors is just a kilometre away from our plant. The company procures engine kits from Germany and assemble the engines for us. Q: When will the local manufacturing of engine parts begin? Frittrang: My experience is that you should never go all steps in one hit as you may fail in terms of quality. We have chosen a secure path. In the first phase, we made Force Motors to assemble the parts sent to them 48 | AutoPartsAsia | JUNE 2015
by BMW Germany. In the second phase, some of the parts can be manufactured and procured in India. And this depends on our volumes. Q: How long was the process to strike the deal with Force Motors? Frittrang: The whole process took about 18 months until they launched the engine in last January. However, most of their time was spent for getting land and licenses to set up the plant. Q: What about transmission? Frittrang: The transmission subassembly is directly delivered by ZF in Germany to Force Motors, which couples it with the engine. At our Chennai facility we carry out the engine dressing, assembly of the front axle and propeller shaft. ZF Hero Chassis at Oragadam supplies axels to us and also to BMW in Thailand and Malaysia. Q: How did you plan for the exhaust system? Frittrang: The key process in making the exhaust system is the welding
process. The Tenneco plant in Chennai has been given the welding unit by BMW to secure the process. The exhaust system has to be airtight. We have set up a test unit in our plant to check it. Q: What about the HVAC? Frittrang: As we build globally- built cars at BMW Chennai, there is no deviation in the HVAC system. We use ‘the hot country package,’ which means the cars assembled here have larger cooling system. This is something similar to what BMW cars in Florida have. The only addition that we provide is the under body protection to prevent the impact of bad roads. Q: The initiatives on seats? Frittrang: BMW has been working with Lear for decades and Lear India has a plant close to this facility. We have close connection with them; our quality engineers at Lear India continuously monitor the production process to ensure our quality standards.
COVER STORY
Gears Up Exhibitors, V
Hi-Speed D
Businesses, to grow, have to be promoted. Each product follows certain path for promotion. However, the route that is common for all products, irrespective of the industry, is trade fair or exhibition. For more than four decades, Messe Frankfurt GmbH has been a key player in organising exhibitions across continents enabling different industrial segments to showcase their products and services to the international customers and consumers. The company is blazing new trails in tune with the increasing demand and emerging trends.
By T Murrali
A
t trade fairs, exhibitors and visitors exchange and collect more than pleasantries and business cards. They also take on board many new impressions, ideas and aspirations. People come together – as they have done from time immemorial – to talk about their experiences, expectations and ideas. These 50 | AutoPartsAsia | JUNE 2015
encounters turn out to be the melting pots of introspection, inspiration, trust and guidance. The face-to-face conversations that take place during trade fairs help establish a community feeling and bring the industry and customers closer. Frankfurt has been a renowned trade fair site for more than eight centuries. According to the information available in the public domain, the first documented
trade fair was held in Frankfurt in 1150. By the 16th century, the city of Frankfurt, with its imperial privileges, had become a centre of international trade. The Frankfurt exchange was born, laying the foundation for the subsequent development of Frankfurt into the finance capital that it is today. After the Wars and economic catastrophes, on August 25, 1946, Mayor Kolb announced that “Frankfurt is
s, Visitors for
d Drive
AutoPartsAsia | JUNE 2015 | 51
COVER STORY
Automechanika fairs held in one year – in fact, a total of 11 of them. That makes Automechanika the most successful B2B brand in the world,” Johannes said. As one of the world’s leading trade show organisers, Messe Frankfurt serves its customers locally in more than 160 countries around the globe. It all happens owing to the company’s tradition and vision of what could be called a global artisan workshop.
going to be a trade fair city once again.” The Frankfurt International Trade Fair, held from 3 to 8 October, 1948 carried on the tradition of the international sample fairs which had been held since Autumn 1919. About 1,771 exhibitors, of which 46 were from outside Germany, played the role of pioneers at the first event. A total of 32 different industries presented their goods, ranging from textiles and machines to foodstuffs, drinks and tobacco, over a total of 60,000 square metres of exhibition area. There was yet another way in which the Frankfurt International Trade Fair played an important role into the birth of today’s Messe Frankfurt. The increasing diversity of the products on offer quickly created a trend towards greater specialisation of trade fairs. Already in 1951, the books and automotive sectors were spun off as independent trade fairs. Messe Frankfurt is a publiclyowned company with the City of Frankfurt holding 60 percent. The rest is held by the State of Hesse. In January 1971 the International Motor Show (IAA) was cancelled by the German Association of the Automotive Industry (Verband der Automobilindustrie – VDA). By the middle of March 1971, Messe Frankfurt announced that there would be a new exhibition `Automechanika 71’ to replace the cancelled IAA show on the same dates. 52 | AutoPartsAsia | JUNE 2015
The impetus for this came from the professional associations of motor vehicle mechanics and engineers and from the servicestation and garage trades, who were keen to showcase their products in spite of the cancellation of the IAA. The first Automechanika took place in Frankfurt from September 18 to 26, 1971. The public were enthusiastic and the trade fair was a thorough-going success, with some 400 exhibitors and 75,000 visitors from 63 countries. The show was held again in 1972 and, since then, has been held every other year, alternating with the IAA. Messe Frankfurt, the owners of the brand Automechanika, supports exhibitors by opening up international markets for their products. Automechanika has grown consistently, and has now become the world’s leading trade fair for the automotive sector and a major meeting place for decision makers in the mobility industry. “In 1997 we began to export Automechanika abroad, first to Russia and Asia. This was very successful, and other shows abroad followed”, Michael Johannes, Vice President Brand Automechanika, Messe Frankfurt, said. Automechanika is currently represented at 14 locations in 13 countries and four continents. “This year has been a bumper one for Automechanika; never before have we seen so many
The company attributes its success in conducting the trade fairs to the careful craftsmanship and the dedication of its employees. The locations for the fairs are, in fact, decided by the customers. This was the case even in choosing Chicago. At each venue, a trade fair is carefully planned, prepared and implemented with the support and guidance of partners and supporters around the world. They make every trade fair a oneof-a-kind event. As a global artisan workshop, Messe Frankfurt unites the highest quality with proximity and international orientation at all trade fairs, organised in association with one of its 28 global subsidiaries, over 50 international sales partners, or at its headquarters in Frankfurt. At present, Messe Frankfurt holds 13 Automechanika fairs outside Germany. They are used by numerous companies to familiarise themselves with new markets, to make personal contacts and to expand their sales networks. Messe Frankfurt Automechanika fairs are held in Frankfurt, New Delhi, Shanghai, Dubai, Chicago, St. Petersburg, Istanbul, Johannesburg, Madrid, Kuala Lumpur, Mexico City, Bunos Aires, and Moscow.
Frankfurt With 4,660 companies from 71 countries, Automechanika Frankfurt in September 2014 set a new exhibitor record. About 140,000 visitors from 176 countries (2012: 147,715) made their way to the city for
the world’s leading trade fair for the automobile sector. As at the previous editions, Automechanika Frankfurt occupied the Frankfurt Fair and Exhibition Centre in its entirety (305,000 sqm). The number of international visitors rose five percentage points to 60 percent. Particular interest was shown by visitors in subjects such as alternative power trains, fully automatic digital reception processes, energy efficiency, lightweight construction solutions with previously impossible loading capacities, accessories, customizing, car media and 3D printing. The next Automechanika Frankfurt will be held from September 13 to17, 2016.
and Convention Center Puxi – from December 2 to 5, 2015.
Shanghai Automechanika Shanghai is the world’s second biggest Automechanika after Frankfurt. The show in December 2014 set again new records. The number of exhibitors rose by six percent. The 4,906 exhibitors from 39 countries and regions presented their products at the Shanghai New International Expo Centre. There they got in contact with 89,111 visitors from 143 countries
Dubai Automechanika Dubai is a well-established force on the international fair and exhibition landscape. With around 28,900 trade visitors from over 130 countries – an increase of 19 percent over 2013 – EPOC Messe Frankfurt GmbH created a set of new records. Over 1,480 exhibitors from 58 countries made presentations at this rapidly growing fair. The 2015 edition will be held at Dubai International
New Delhi The 2nd edition of ACMA Automechanika New Delhi, from February 26 to March 1, 2015 offered industry players a credible networking platform to discuss automotive industry policies, challenges and best practices amidst the presence of key decision makers and automotive sector players. With 436 exhibitors from 17 countries, it was the largest aftermarket exhibition held for the Indian automotive industry. Presenting innovative autocomponents in six different categories of Parts and Systems, Accessories and Tuning, Tyres and Batteries, Repair and Maintenance, IT and Management, Service Stations and Car Washes, the platform facilitated significant business closures, tie-ups and merger announcements during its fourday course. Seven international pavilions from China, Germany, Italy, Korea, Taiwan, Thailand and the UK represented their nation’s competitiveness in mobility, vehicle components and servicing solutions. ACMA Automechanika New Delhi had 12,861 business visitors from India and abroad, 58 per cent more than that for the launch edition in 2013. The next edition of the ACMA Automechanika New Delhi will be in February 2017.
and regions, nine percent increase from 2013. Alongside the number of visitors and exhibitors, the exhibition space also increased five per cent to 220,000 sqm, reaching the full capacity of the fairground. This consists of the 17 established halls and 10 temporary halls. The next Automechanika Shanghai will be held for the first time at the National Exhibition
Convention and Exhibition Centre from June 2 to 4, 2015.
Chicago Automechanika Chicago made its debut at the McCormick Place exhibition centre in Chicago on April 24, 2015. The show was the 14th Automechanika event around the globe, and the first-ever in the United States. The event opened its doors to a successful turnout with a diverse group of exhibiting companies and nearly 6,000 attendees. More than 450 exhibitors from 23 countries showcased the newest tools, equipment and products for the automotive aftermarket industry. The event was also declared as the biggest platform for industry training, hosting over 100 seminars and workshops with more than 2,000 shop owners and technicians attending the sessions. The next show is scheduled for Spring 2017. AutoPartsAsia | JUNE 2015 | 53
COVER STORY St. Petersburg The 20th Automechanika St. Petersburg took place from March 24 to 26, 2015 with a new partner, Restec Exhibition Company, and in a new surrounding, the ExpoForum International Exhibition & Convention Centre. It coincided with the Autoprom Russia, St. Petersburg Technical Fair and Blech Russia trade fairs. Automechanika St. Petersburg attracted 7,145 trade visitors. Most of them were from Northwest Russia. In all 394 exhibitors presented their products, covering an area of 9,000 sqm. The next
occupied 49 percent more space than in 2013. Among the 65 visiting countries and regions, the top ten (excluding Malaysia) were Australia, China, India, Japan, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan and Thailand. The next event will take place in March 2017. 25 percent more visitors and 28 percent more exhibitors. The fair attracted 51,484 visitors and 603 companies presented 1,117 different trademarks on an area of 29,930 sqm. The next Motortec Automechanika Madrid will be held from March 29 to April 1, 2017.
South America Messe Frankfurt holds two Automechanika fairs in South America - Automechanika Buenos Aires and PAACE Automechanika Mexico City. With 516 exhibitors
Johannesburg The fourth Automechanika Johannesburg, held from May 6 to 9, 2015, was an important meeting place for the automobile sector in Southern Africa and the gateway to Africa. Established as a premier business to business event for the automotive aftermarket in Automechanika St. Petersburg will be held from March 15 to 17, 2016.
Istanbul In Turkey, automotive parts make up the leading export sector and, in line with this, Automechanika Istanbul has been a long-running success. Since the première in 2001, this event, a joint venture of Messe Frankfurt and Hannover Fairs Turkey, has developed into Turkey’s biggest international trade fair. The event from April 9 to 12, 2014 started with new record figures. About 1,600 exhibitors came to the Bosporus to present their products on 40,000 sqm.
Madrid New since 2011 in the Automechanika portfolio is Motortec Automechanika Madrid. It is organised by IFEMA (Institución Ferial de Madrid), a key partner of Messe Frankfurt. The second Automechanika on the Iberian Peninsula took place at the Parque Ferial Juan Carlos I in Madrid from March 11 to 14,2015 and closed with 54 | AutoPartsAsia | JUNE 2015
South Africa and the sub-Saharan African Region, the 2015 edition of Johannesburg Automechanika witnessed 603 exhibitors from 21 countries.
from 22 countries and nearly 20,000 trade visitors, PAACE Automechanika Mexico City is one of the leading fairs for the automotive aftermarket in Latin America. Mexico is one of the world’s most dynamic automobile markets and the Mexican Government offers a favourable business environment to foreign investors. The next PAACE Automechanika will be held from July 15 to 17, 2015. Automechanika Buenos Aires has developed into a leading event
Kuala Lumpur Automechanika Kuala Lumpur is the gateway to the ASEAN region. Held from March 19 to 21, 2015 at the Kuala Lumpur Convention Centre, the 9th edition attracted 28 percent more exhibitors (243) and 25 percent more visitors (5,440) than the previous one. The event covered four halls and
in the Mercosur region. Covering an area of 40,000 sqm (gross), it is the third-biggest event in the Automechanika family and is held in La Rural Exhibition Centre. The fair was launched in 2000 and has proved to be a reliable partner for the market even in times of economic difficulty. In November 2014, 322 exhibitors
from 19 countries presented a large range of products and services, which attracted around 27,000 visitors. The figures for the next Automechanika Buenos Aires from November 9 to 12, 2016 will certainly be a subject of considerable interest.
Moscow In Moscow, Messe Frankfurt cooperates with ITE. In September 2014 the trade fair was renamed “MIMS Automechanika Moscow”. The latest edition in August 2014 presented a wide range of spare parts, components and equipment for vehicle servicing
prevent product piracy was recognised in 2013 at the 26th Mercury Awards in New York in the category `Campaign – NonProfit/Public Affairs’.
Messe Frankfurt Group intellectual property rights and advise exhibitors on what to do in the event of infringements. Messe Frankfurt works in close cooperation with official bodies and private organisations in the field of protection of intellectual property rights for all activities associated with its initiative. Thus, exhibitors and visitors are
The Messe Frankfurt Group is divided into two companies under the holding company Messe Frankfurt Holding GmbH: Messe Frankfurt Exhibition GmbH, which organises trade fairs in Germany and abroad, and Messe Frankfurt Venue GmbH, which focuses primarily on managing and optimising the exhibition grounds. These two companies are grouped together under Messe Frankfurt Holding GmbH, which performs all administration and staff functions. The holding company, Messe Frankfurt Venue and Messe Frankfurt Exhibition are run by one Executive Board. Messe Frankfurt organizes events in the business fields Consumer Goods & Leisure, Entertainment, Media & Creation, Mobility & Infrastructure, Technology & Production and Textiles & Textile Technologies.
to the industry specialists in Moscow. About 1,300 exhibiting companies from 39 countries displayed their innovative products and services on a total exhibition space of over 50,000 sqm. The show was attended by 31,239 trade visitors. The next MIMS Automechanika Moscow will be held from August 24 to 27, 2015.
Against Counterfeit In 2006, Messe Frankfurt became the first trade fair organiser worldwide to launch an initiative against brand and product piracy: `Messe Frankfurt against Copying’. This initiative aims to ensure that exhibitors and visitors are fully informed and advised about the registration and assertion of intellectual property rights. That is why it offers an information stand at all of Messe Frankfurt’s own events, both within Germany and at selected trade fairs abroad. Here, experts from the partner companies are available to answer questions pertaining to the topic of
able to find out at first-hand how they can register and assert their intellectual property rights. In urgent cases, Messe Frankfurt arranges for legal support, and an on-site emergency legal service offers exhibitors free initial advice during the fairs.
Positive Results The success of `Messe Frankfurt against Copying’ has been striking: More than 28,000 customers have taken advantage of the information on offer since the initiative was launched. The number of products seized by customs has fallen significantly – by as much as 95 percent at individual fairs. These efforts result in making the exhibitors better informed and more keen on getting down to details. They are protecting their products and brands more effectively by registering their intellectual property rights with the relevant authorities. The commitment of Messe Frankfurt to protect brands and
Conclusion For Messe Frankfurt, organising trade fairs means more than just bringing people together. First and foremost, trade fairs are about innovations, emotions, ideas, interaction – and doing business. The company believes that a conversation at an exhibition stand can plant the seed for a project idea that signals a new direction for an entire industry. In 2014, about 85,000 exhibitors and more than three million visitors came together at the company’s 120 trade fairs held across different markets worldwide. There are specialist areas that exhibitors, visitors and event organisers automatically associate with Messe Frankfurt, knowing that they are in the best possible hands. The core of this trust is the Messe Frankfurt corporate brand, which is charged with positive values and messages adding weight to its product and service brands all over the world. AutoPartsAsia | JUNE 2015 | 55
COVER STORY
The Prime Mover Of Automotive Industry The brand `Automechanika’ of Messe Frankfurt, Germany, is the largest and widest exhibition of the automotive industry in the world. In collaboration with local partners, now Automechanika is at 14 locations in 13 countries, including India, crossing milestones every year in the area of exhibition and number of exhibitors. In an exclusive interview to AutoParts Asia, Michael Johannes, Vice President, Brand Automechanika, Messe Frankfurt, unfolds the beginning, growth and the expansion strategy of Automechanika.
Q
: How is the brand Automechanika set to grow in the next decade? What are the key drivers for growth? Johannes:The brand management for Automechanika provides a clear prescription for the family of trade fairs. Automechanika Frankfurt is
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the leading fair and points the direction in strategic matters. Once we have successfully introduced something at the trade fair in Frankfurt, for instance, ‘Truck Competence’, then we roll it out in a second phase to all our fairs abroad. Moreover, we keep in close contact with our customers. This we do both through direct dialogue and through targeted exhibitor and visitor opinion polls, which we conduct at all our Automechanika shows. The latest example of this is Automechanika Jeddah, which we are organising for the first time in January 2016. The huge economic strength of Saudi Arabia, as well as the predicted growth in the motor industry and its suppliers, offer very considerable potential for an international trade fair like Automechanika.
Automechanika is a major meeting place for decision makers in the motor industry
Q: Which are the editions that grow faster and why? Johannes: The events that record really rapid growth are the Automechanika shows in Istanbul, New Delhi and Shanghai. Trade fairs are also always a reflection of the markets. Let’s take the example of Automechanika Istanbul, which reports new records every year. Because of the huge demand, we now hold this trade fair annually, instead of every two years as we did
before, and this has not impeded the success of this fair one iota. The reason is simple: Turkey has outstanding economic conditions and automotive parts constitute the major export sector in Turkey. Similar relationships pertain as far as Automechanika Shanghai and ACMA Automechanika New Delhi are concerned. Here, too, companies can find ideal conditions in which to do business. Q: Which are the new locations being planned or considered for Automechanika? Johannes: Along with Automechanika Chicago, we have also recently acquired, as a new element in our portfolio, Automechanika Jeddah, which will celebrate its launch in January 2016 in Saudi Arabia. The event is designed as a AutoPartsAsia | JUNE 2015 | 57
COVER STORY
regional trade fair for the Saudi Arabian market or, more precisely, the Middle East. With 7.1 million cars on the roads of Saudi Arabia, the country is well on its way to becoming the production centre for the automotive market in the Middle East. Automechanika Jeddah is organised jointly by Messe Frankfurt Middle East GmbH, Dubai, a subsidiary of the Messe Frankfurt Group, and the leading Saudi-Arabian organiser, AlHarithy Company for Exhibitions (ACE). And there is more to come. Q: Automechanika Shanghai has been growing exponentially 58 | AutoPartsAsia | JUNE 2015
– what is the reason? Can you give us an idea of the growth pattern in terms of exhibitors, floor space and footfall for this show from its inception till the 2014 edition?
Automechanika record shows that rapid growth are for the events held in Istanbul, New Delhi and Shanghai
Johannes: Yes, the market in China continues to be as lucrative as ever and continues to grow. China’s car production and sales are exceeding all expectations, resulting in China retaining its status as the world’s largest car market for five consecutive years. Because of the continuing growth of Automechanika Shanghai, the next edition will be held at the new, larger National Exhibition and Convention Center in Hongqiao, Puxi. In 2004, we organised the show on an area of 10,000 m2. There were 235 exhibitors and some 9,140 visitors. By 2007, exhibitor numbers had more
than quadrupled to 1,250 and the exhibition area had also grown very considerably to 51,000 m2. More and more exhibitors and visitors have come to each subsequent event and the number of international participants has also increased significantly. By 2012, the trade fair covered an area of 180,000 m2; in 2014 the figure was 220,000 m2. The interest on the part of the exhibitors, too, continues unbroken: in 2012, some 4,100 took part and in 2014, 4,900 companies attended. Q: How is Automechanika Kuala Lumpur faring? In spite of its being held in Asia, which is a growth-oriented market, Automechanika Kuala Lumpur’s growth has not matched other shows on the continent, (considering the size of the market). Why? Johannes: The latest Automechanika Kuala Lumpur, which took place in March this year, was very successful, with 243 exhibitors and 5,440 visitors from 65 countries. In other words, what we are seeing here is a turnaround. The implementation of NAP 2014 last year was designed to further transform the Malaysian automotive sector as the nation’s engine for economic growth. The automotive sector is expected to contribute even more towards the national GDP, with a target set at 10 percent by 2020. Q: The number of participants in ACMA Automechanika New Delhi has doubled in the 2015 edition, despite the slowdown in the market – what do you think is the secret behind these figures? Johannes: Firstly, the market in India offers outstanding opportunities; the growth in the Indian aftermarket will continue – and become even more lucrative. Thus, the market for automotive components - or, more specifically, the entire automotive aftermarket in India – is currently estimated at US $ 56 billion and its value is set to increase still further over the coming years. It is being estimated at more than US $ 100 billion by 2020 – 2021. At the same time, exports of
Indian motor vehicle parts and components continue to grow. And secondly, we have, in ACMA, an excellent partner; it is an association which has, of course, outstanding contacts among its members in the Indian supplies industry, as well as a highly committed team on the spot in India, which organises the trade fair.
This year has been a bumper one for Automechanika; never before have we seen so many Automechanika fairs held in one year.
Q: Messe Frankfurt believes that trade fairs are about innovations, emotions, ideas, interaction – and doing business; which of this is changing the fastest and why? Johannes: That is a fascinating question, which is not at all easy to answer. But, if we look at the companies involved in – let’s say – the ‘connected car’ and driverless vehicles, then it becomes very clear that it is, above all, ideas and innovations that move you forward. If you are not open to new ideas and new ways of thinking, then you can easily miss the boat. As trade-fair organisers we naturally keep a very close eye on current developments and trends and react accordingly; we are constantly developing the concept for Automechanika, revising and extending the product groups, reaching out to new exhibitor groups and organising special shows and displays on current trends such as, for instance, 3D printing. Q: Automechanika Chicago is the first edition in the US; is this a strategic decision to enter the US market late? Johannes: Yes, of course, we
have had the American market on our radar for a long time. Messe Frankfurt has so far had a presence in the States with textile fairs in Houston, Atlanta and New York; and the time was right for an edition of Automechanika in the US. At the end of the day, the American automotive service market is the most important and largest in the world. Our customers want to be represented there and it is important for the Automechanika brand, too, to be positioned in that market. We managed to do that successfully by positioning Automechanika Chicago as the largest US platform for first class technical training and management seminars for motor vehicle mechanics and garage owners. But the search for a partner was not entirely easy, either. In UBM Advanstar we have found a very competent and experienced partner; they have a great deal of expertise in the exhibition and events business, with 50 trade fairs of their own. So I am all the more delighted at the fabulous outcome: altogether, over 460 exhibitors have signed up for the first Automechanika Chicago. Q: What are your short-term and long-term plans? Johannes: We are looking to extending still further both our expertise and our portfolio in the automotive sector and to consolidating our position as the leading trade-fair organisers in the automotive sector. In addition, we are organising a number of motor shows and conferences, including, amongst others, Comtrans in Moscow, the Automotive Engineering Show in India and a conference under the title of `Connected Mobility’ in California. Our aim is to reflect the entire value creation chain in the sector in our trade fairs and conferences – and to achieve this in all segments, covering cars, buses, trucks and bikes. With a view, then, to making the best use of the synergies that emerge. AutoPartsAsia | JUNE 2015 | 59
SPECIAL REPORT
Gold Seal-Saargummi Banks On Innovative Localisation
Gold Seal - SaarGummi India’s new plant in Sanand, Gujarat
By T Murrali
C
ontinuing its intent to pursue technological innovation and excellence, and showcase its ability to go beyond the expectations of the very exacting OEM clients like Ford, Gold Seal- SAARGUMMI India Private Limited, a joint venture of Gold Seal Engineering Products of Mumbai and CQLT SAARGUMMI of Germany, has commissioned its greenfield sealings plant recently at Sanand, near Ahmedabad. This state-of the-art plant with high degree of automation has reiterated the Gold Seal group’s commitment to support its customer, Ford India that has recently inaugurated its second India plant at Sanand. Gold Seal-SAARGUMMI mainly serves the requirements of the Ford
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India plants in Sanand and Chennai. It supplies trunk tailgate seals and inner door seals for Ford’s new models – the next-generation Figo hatchback and sedan – being produced at Ford India’sSanand plant. The company has been supplying various sealing systems to its Chennai plant for the EcoSport SUV.
Darius C Aga, director, Gold Seal-SAARGUMMI India, told AutoParts Asia. Tata Motors make Nano from its plant in Sanand itself. In fact, Sanand became an automotive hub after Tata Motors set up a plant for Nano, after its attempt to build a Greenfield plant in Singur failed.
Ford was instrumental in bringing both SAARGUMMI, the world leader in rubber weather strips, and Avon, the global leader in radiator coolant hose, to India to form a JV with the Gold Seal Group to transfer latest technology to manufacture products of international design and quality for the first time in India.
“We are also in discussion with our existing customers like Mahindra & Mahindra, General Motors India and Volkswagen India among others for bagging new orders which will be catered to from this plant’’, he said. It was also planned to shift some of the production for Mahindra from the Daman plant to this new facility, he added.
“We are looking at supplying to other vehicle manufacturers like Honda Cars India and Maruti Suzuki and Tata Motors”,
The Gold Seal Group, founded by H.E. Aga in 1958 along with his wife, Daulet H. Aga, now comprises three joint
entities. They are Gold Seal Engg Products Private Limited, a 100 per cent Aga family-owned company having plants in Mumbai and Daman; GoldSeal – SAARGUMMI India, a 49:51 joint venture of Gold Seal Engg Products and SAARGUMMI of Germany; this entity makes EPDM rubber-extruded sealings and weatherstrip profiles for passenger cars, SUVs, MPVs, LCVs and tractors; and Gold Seal Avon Polymers, a 45:55 joint venture of Gold Seal Engg Products and Avon Automotive of the US, now owned by MGI Coutier of France, to manufacture EPDM rubber radiator hoses. SAARGUMMI operates out of 12 locations in Europe, North America, South America and Asia with about 4,100 employees worldwide. There was a global restructuring of the company after it was taken
Next Gen steering the Gold Seal Group of Companies - Khursheed C Aga, Darius C Aga and Urvaksh C Aga
over in 2011by Chongqing Light Industry & Textile Holding Group (CQLT, Chongqing), China. On the process capabilities inbuilt in the newly commissioned plant, Darius said, “We can explain to all our existing and new clients, partners and stakeholders how our company is very innovative, how we invest in latest technology and the measure of the new technology we bring to India and to the market at present. You can see our facilities, the extrusion capacity we have in the overall size and the structure, the training, the manpower and our thinking for the future.’’ With the group’s experience in its Mumbai and Daman plants, the machineries used in Sanand plant are a combination of both locally assembled and brought out. “We have five extrusion lines in Daman and we have the finishing plants in Mumbai. Based on our experience and existing knowhow, we get the world-class technology and the customers can feel that’’, Darius Aga said.
“We had a lot of R & D in Daman; we have done more R & D here. It was possible to get the machinery from some of the largest manufacturers. But our team developed the machines based on our requirements. Import content in the machines may be around 40 percent and even in this there is our involvement to make them specific to our operational requirements, raw material availability and local supplies. It was not a plug and play,” explained Darius Aga. With five extrusion lines, to be in place by July this year, the output from the Sanand plant will total 20,000,000m/year within three years. The company has invested Rs 51 crore in the new facility. A mixing unit has also been installed at the plant with an installed capacity of 25 tonnes daily. “We are also looking for more sophisticated lines for manufacturing different products. We are in talks with lot of suppliers to develop new technologies for the customers in India. We are planning to diversify our portfolio. We
have space and plans for expansion based on the business requirements. We hope all these would happen in 3-4years’’, he said. Urvaksh C Aga, CEO, Gold Seal Engg Products and Gold Seal – SAARGUMMI India, said the company and others in the New Auto Hub chose Sanand because, “we wanted to set up the new plant nearer to our clients like Ford. Five to six extrusion lines per plant is the optimum size and hence the necessity for a separate plant as our two other plants are functioning already at the optimum level. GoldSeal-SAARGUMMI’s Sanand plant is a stateof-the-art facility as continuous improvement is part of the group’s strategy along with more automation and less dependence on human variability in the process. “Sanand is an area that is difficult to get manpower. New companies are coming up all over the place. We have lot of automation in the new plant because of the problem in the availability of human resources and
also for better process quality,” Urvaksh Aga said. Manpower has its own challenges everywhere. However, this plant requires only 60-70 percent of the manpower for the same capacity plant as in Daman. The investment is up in certain areas, with machines bought from different parts of the world where it was able to get the best price advantage and technology.
Bouquet of Products Gold Seal – SAARGUMMI makes a range of products including seals for hood, windshield finisher, sunroof, tail-lamp, glass-run, trunk, B-pillar, waist belt (inner & outer), door (inner & outer), rocker, toolbox, fuel-tank profile, front panel and high-roof. It makes Bi-Component Products (such as single and double bulb door seals, boot and bonnet seals and engine hood seals) Dual Hardness Products (like windshield glass rubbers, windshield and backlight glass edge protectors, inner waist line weather-strips and cabin hood lining seals) Flocked products (like glass runs, AutoPartsAsia | JUNE 2015 | 63
SPECIAL REPORT inner and outer waist line seals – also with metal reinforcement) and Slip Coated Products (like door seals and boot seals). Besides, it also makes selfadhesive tape laminated products for applications in tail lamps, secondary door seal, bonnet front seal and rocker panel seals. Its specialty products include ‘plastic extruded’ products (such are edge protectors and thermoplastic profiles with or without metal
making India a sourcing hub. Now most of the design and development work is done in Germany. “We have the engineering resources to mix and match and this has given us cost and technological advantages. This was because the customer wants lot of engineering support and the customers are outsourcing designs to their suppliers as they have more experience and understanding of the
Gold Seal - SAARGUMMI makes several products inlcuding EPDM rubberextruded sealings and weatherstrip profiles. The one shown in the photo is Seal TEX
wanted SAARGUMMI to come to India. While Ford India will be producing at Sanand the Figo twins for the Indian market, it will also be addressing the overseas demand.
Compounds mixing facility at the Sanand plant
reinforcement), ‘solid rubber’ products (like windshield weather-strips, backlight weather-strips and glass edge finishers) and ‘sponge rubber’ products such as outer door seals and control panel seals. Globally SAARGUMMI is working on new products such as coloured profiles, coloured flock, hybrid profiles, cloth applicated profiles and coloured EPDM/TPE, in addition to developing light weight seals.
Tech Centre Yet another interesting aspect of Gold SealSAARGUMMI India is the establishment of a technical and design centre at Sanand for the local needs and also for 64 | AutoPartsAsia | JUNE 2015
processes. And globally there is a drive to reduce the development cost’’. SAARGUMMI has four technology centres - in China, Germany, Brazil and the US. The one coming up in India is the only joint venture technical centre. “The engineering tech centres are designed not product-wise but programme-wise and the role of the India centre is yet to be decided. Globally the small cars are getting priority and the long-term prospects for the Indian markets also are small cars. The tech centre will support the Indian market,” he said. Gold Seal-SAARGUMMI sealings find their application on a variety
of equipment outside the automotive industry as on cabins of agricultural and earth moving equipment, medical equipment, and enclosures in industrial equipment. The group’s primary focus on quality and innovation has been able to keep its OEM customers happy and satisfied. The group exports its products to markets in Africa, Australia, European Union, the West Asia, South East Asia, the UK and the US.
Exacting OEM customer Ford India is a major OEM customer of Gold Seal-SAARGUMMI. When Ford decided to manufacture `Figo’ in India, the company
The Sanand plant of Ford has an installed capacity of 2.5 lakh units on an annual basis in the first phase of operations. In the first year production is limited to 800-900 units daily with annual production pegged at 1.5 lakh units. Ford is expected to launch the 2015 Figo ‘Aspire’, its compact sedan, soon. It is set to take on the Maruti DZire, Honda Amaze, Tata Zest and the likes. In addition to the Figo twins, Ford India will roll out the new generation Endeavour this year brought in via the CKD route and assembled at its Chennai facility. P B Madhavan, Purchasing Director, Ford Motor Company said, “We have about 100 vendors for Ford India’s Chennai plant and all of them are supporting us from their respective facilities. About 17 of the suppliers have set up their plants in Sanand and most others are in and around Pune. Seals are very sensitive to transportation and that is why we have asked SAARGUMMI to come to India,” he said. He further said that GoldSeal
- SAARGUMMI’s facility in Sanand is a state-of-the art plant with added features and increased automation. “All the products we use in India are global products. During the last 15 years since Ford has been in India, the local vendors have collaborated with their global suppliers and have matured very satisfactorily,” he said. Still they have some distance to cover. We have the roadmap to bring them up to the level their western counterparts operate. The gap is mainly in the quality outlook, especially when we compare with the global metrics. Still, quite a few have even acquired the quality certification,” Madhavan said.
A company with commitment Bajaj Auto is another major OEM client of Gold Seal SAARGUMMI. “Gold Seal SAARGUMMI is a reliable company which will fulfil its commitment and even more. The company is customer-oriented and technologically ahead of even the OEMs. “They take the initiative and innovate,” said Tryambak D Bharsawade, Manager, Component Development, Bajaj Auto Limited. “Normally, the suppliers follow the OEMs. But for Gold Seal– SAARGUMMI, it is the other way round. The company makes the OEMs to follow their inventions and innovations. They will not change if they are convinced what they do is good for the customer. With this attitude, they took us ahead, they wanted us to be ahead. The company has developed a lot of parts for our threewheelers’’, he added. Bharsawade said the new plant of the Gold Seal – SAARGUMMI was planned to be set up in Pune. Bajaj
Extrusion line; the company will have five extrusion lines by July this year and the output from the Sanand plant will reach 20,000,000m/year within three years
group was happy about that as it would have been closer to its manufacturing companies. However, owing to some problems in land acquisition, it went to Sanand in Gujarat. It was a location convenient for them as they have their plants in Mumbai and Daman and major OEM clients in Gujarat. Khursheed C Aga, Director, Gold Seal Group, concludes by saying that the group continuously focus on enhancing quality and to achieve this technology up gradation is the key. There is no dearth of technology at Gold Seal and in future it is committed to keeping itself abreast of the technological developments. Gold Seal Engg Products Private Limited started its operations in 1958 as a humble, small scale unit to , to manufacture the first door seal and window channel, fitted as
OEM on the first Indian manufactured car – Ambassador. Since then Gold Seal has grown from strength to strength, by remaining committed to delivering a high quality product by constantly adopting new production technologies. The growth was fuelled by Chairman of the Group, Cyrus Aga and the Group Commercial Director Piloo Aga. Over the years, Gold Seal has maintained its quality and brand leadership with leading Indian OEMs and supplies its ever-expanding range of products of EPDM rubber, PVC, Nitrile, and TPE extruded sealing profiles and radiator hoses to more than 25 OEM locations all over India. During 1995-97, Gold Seal came together with two world leaders to form two joint venture companies to expand its product offering. It joined with SAARGUMMI, Germany as they are the world leaders in the design and manufacture of
innovative, technologically high quality body seals; besides, the group wanted to supply German technology body sealing profiles to the Indian automotive industry. The group joined with Avon Automotive, USA, as they are the world leaders in design and manufacture of fluid conveying systems, with the core focus of supplying high quality, robust coolant and water conveying radiator hose systems to the automotive industry in the country. The company makes low pressure radiator hose systems, spouted hoses, and hoses for heater, fuel filler and reservoir. Its main customers being Ford, Nissan and Mahindra. Avon Automotive has nine manufacturing locations globally including one in India. It caters to a range of customers like JLR, Honda, Ford, Rolls-Royce, Scania, Rover, VW, Volvo, BMW, Nissan, Suzuki, Mercedes Benz and Renault. AutoPartsAsia | JUNE 2015 | 65
SPECIAL REPORT
INTERACTION -Michael Lorig, CEO, SaarGummi SAAGUMMI, the global supplier of automotive sealings, has very strong presence in Europe, North America and Asia. It has made rapid inroads into the fast growing automotive markets of China and India. Michael Lorig, who was appointed CEO of the company in September 2014, told in an exclusive interview to T Murrali, that the focus of the company would be on both the traditional and growing markets with lots of localisation and innovation. Edited excerpts:
Q
: How was your first six months as CEO, how was
the going? Lorig: Before joining this company as CEO, I was heading the global sales, product management programme and quality planning. As the CEO is responsible for the operations, after taking over, I have been focussing on globally competitive strategic development and how to make a global footprint. Q: What is your strategy; how do you propose to implement it? Lorig: Obviously I have to find out the correct position of the market; that is applicable for any business. I have to find the position of the European market, especially the sealing market, and the technology driving the global automotive market. We have only limited number of suppliers. When we look into the history of these suppliers, we find that they all have a permanent concentration in the market and that brings pressure on margins. When we employ strategies to the automotive market,
66 | AutoPartsAsia | JUNE 2015
we have to compare the traditional markets in North America and Europe and the growing markets in Asia, which are the main drivers. The traditional markets are very stable. The really growing markets are in China and India and this is where to go. When we put all these bits and pieces together, it is clear that we have to come up with a strategy of focussing on these four markets. We have some sizeable presence in North America and Europe. Q: So your concentration is on Asia-Pacific and the Americas and Europe? Lorig: The organisation has to follow its own strategy and methods. Each strategy has its own advantages and disadvantages. Every region has its own requirements. North America and Europe are consolidated markets while Asia is a growing market. Every region is responsible to make its own business. This means going down to the customer and lot of localisation and innovation. Q: What is the idea behind a President’s level appointment at the regional level?
Lorig: It is regional focus. We look at it on a priority level in terms of car life cycle, we have to understand which part makes the market and has the volume. Sealing system is part of the volume. This information has to be reached to the production stage and we have to produce on global automotive standards. The organisation has to follow this along with technology and innovation. This regional level innovation has to be synchronised with the global standards of the automotive business. Q: How do you see the sales coming up for the next five years? Lorig: SAARGUMMI is making roughly about Euro 400 million in sales; 250 million Euro is from Europe and the rest from the Americas and Asia. In Asia, we have three production plants in China and two in India. We get about 80 million from Asia including 15 million from India. We expect the market to go up. Q: Asian markets are emerging, where the value is less. Will value drive your growth or
volume will be the driving force? Lorig: What we see is that when we look at the content we have to look at sealing system itself. This is driven by the car concept. The Chinese market is growing in the direction for the foreign markets. This means there will be more luxury cars where the content will be more. India is also a growing market with less volume. Q: How important is this plant in India for the SAARGUMMI group since it is a combination of R & D, design, engineering and production? Lorig: The Sanand plant is very important for us. The automotive industry is changing very much, especially in the volume segment. We have three global platforms. We manufacture here in India for a car which was developed in Brazil and launched in India, China and Brazil. We see true global position and we cannot help having such a plant in India having all the features set by the customer. For that it has also a technical and design centre along with the production facility.
Aftermarket
Bosch Augments Test Equipment Range APA Bureau
T
he Automotive Aftermarket division of Bosch Limited is gearing up to meet the requirements of the emerging aftermarket in India. The company has drawn up extensive plans to contribute to its growth by offering hightechnology products that will enhance performance and productivity. Guenter Weber, the Regional President, Automotive Aftermarket, Bosch Limited, told AutoParts Asia that the company has prioritised its actions on three verticals: Matching the company’s OE offerings; test equipment comprising diagnostic tools, test benches, machine testers etc.; and knowledge enhancement services, which will help technicians use the testing and diagnostic equipment and repair vehicles. “We are following OE business division in offering spare parts. We are expanding our range in the aftermarket to cover
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95 percent of the vehicles in the value segment,” he said.
targets the car enthusiast and the DIYer – do it yourself.
Test Equipment
The product consists of a software app and a wireless Bluetooth OBD dongle which can be plugged into the 16 pin OBD interface of the car (normally located beneath the steering wheel). Such an interface is available for all models of cars in India, from Nano to MercedesBenz.
Weber said Bosch has introduced an entry- level diagnostics solution, ‘ES 200’, which is an affordable and value-for-money test equipment. This smart new engine scanner is an easy-to-handle diagnostic tool that can be connected to the OBD port for fast and accurate diagnosis of the vehicle. “ES 200 is a simple, efficient and handheld diagnostic tool for assessing the vehicle’s condition. Since the electronics content in most cars sold in India is increasing, the workshops are equipping themselves with diagnostics to offer their customers comprehensive services”, he said. Bosch has also introduced a consumer product ‘fun2drive’ targeting endconsumers to conduct health check-up of the vehicle on their own. It
The app communicates to the car computer through this Bluetooth dongle. The app uses the globally accepted OBD II protocol for this communication (legal in the US since
1996, in Europe since 2001 and now in India too). It is suitable for most of the cars launched since 2009.
The Differentiator Besides showing the typical engine raw data retrieved from the car computer (which is also done by other apps), this product has several additional capabilities. It has the rated performance database (max horsepower/torque) of more than 2,50,000 models of cars, and the user can personalise the app to his car. (The app gauges are calibrated to the car’s rated performance.) The unit will show accurate actual
performance (horsepower/ torque/fuel consumption) data based on complex algorithms. It connects the user from the current location to the nearest Bosch workshop for expert assistance and gives access to the list of original Bosch parts for the vehicle. The OBD Dongle is an Apple-approved BT hardware. It can be used with Android or Apple phone. Today anyone needs a BT device for Android, and a Wi-Fi device for Apple. “India would be one of the first markets processes. It also enables the user to reuse the existing 3-D data. The user will benefit from the increased quality of repair and training as the information is displayed at the need point. In addition, it adjusts to actual situation by reducing the search time.
where the new app will be introduced; this speaks volumes about the interest Bosch has in the Indian market,” Weber said. “If the user feels that something is wrong in the vehicle, he can make an informed decision. By knowing the health parameters of the vehicle the user will realise the priorities and can act accordingly’’, he said.
Augmented Reality As there are innumerable circuits and wires behind the dashboard of the car, Bosch has introduced the new ‘Augmented Reality’ technology for the workshops of tomorrow. It will support the user in complex reparations and diagnosis with additional visual and augmented data.
We also offer training to trainers by our European experts,” he said.
‘Augmented Reality’ offers several advantages, including superimposing of repair information on to a vehicle, visualising diagnostic data at the vehicle, combining conventional and augmented contents. It also guides the technician to relevant locations on the vehicle and integrates seamlessly into the existing authoring and workshop
Training Weber said the company has been focusing on offering different training modules – basic training, product-related training and training to train technicians to carry out repair. “Our aim is to impart training on multiple brands with focus on several technologies, including gasoline / diesel systems.
The company has 14 training centres and works with industrial schools in other areas. This will help enhance its footprint based on the emerging demand. When compared to developed markets, Bosch’s penetration in India is different as the company has been dealing with multiple generations of technologies. “Owing to the complexity of the market, both at the retailers and workshops level, it is not very easy to cater to all. However, we have the knowledge for that’’, Weber said. AutoPartsAsia | JUNE 2015 | 69
Aftermarket
Tec Alliance Eyes India APA Bureau
E
urope’s leading automotive aftermarket parts e- catalogue producer TecAlliance GmbH, is planning to enter India. The company that operates in Western and Eastern Europe, China, Australia, the US and Brazil, is actively looking at Indian Sub-Continent due to the sheer size and potential growth of the automotive market in general and aftermarket in particular. TecAlliance, the company that manages host of other services for facilitating easy reference, ordering and repair information, has about 600 aftermarket brands, 300,000 part numbers and 1.2 million users spanning 40 countries and 28 languages. Speaking to AutoParts Asia, David Winter, Executive Vice President (Customer Management), TechAlliance GmbH said, “We are in the process of entering the Indian market. We have great plans for India as it is a very big and challenging market. We want to find suitable business model in India for our operations as we have done in China. In consultation with our stakeholders we would formally enter in 2016.” The company representatives have been visiting India since 70 | AutoPartsAsia | JUNE 2015
three years and studying various options to gain market entry. “Our focus is on independent aftermarket, retailers and garages. Besides, we will also focus on dealers of vehicle manufactures as they would be requiring to
modernise their operations. Our prime task is to make sure that the retailers and workshops and technicians find the right parts right first time,” he added. About the operational method of TecAllaince, he said the company
collects data from vendors, process and standardises and distribute. “We help the independent retailer to automate and simplify his business. The information we give and our standardised communication system will
Vehicle Identification
PRODUCT & VEHICLE DATA
REPAIR & MAINTENANCE DATA
SUPPLY & DEMAND PROCESSES
MASTER DATA
REPAIR INFORMATION
ORDER TO INVOICE
CATALOGUE
MAINTENANCE INFORMATION
PLANNING F/CAST REPLENISH
WEB SHOP
CALCULATION
RETURNS
Diagnosis Information Parts Identification Availability, Order, Confirmation, Despatch advice Deliver, Receive, Return Repair Information Invoice
make his business more efficient and minimise costs along the entire value chain,” he said.
Communication Platform Consisting of a strong alliance of the TecDoc, TecRMI and TecCom brands, TecAlliance boosts the competitiveness of the international automotive aftermarket over the long term. Under the umbrella of TecAlliance, the company has products and solutions to optimise daily activities in the independent parts business. Whether it is identifying product or vehicle data, automating order and delivery processes or providing repair and maintenance information, the company offers itself as a single point contact. Typically, the data for all manufacturers are collected, standardised and distributed. The business relationships are automated and simplified accordingly. This makes the independent automotive aftermarket more competitive and minimises costs throughout the entire value chain.
TecCom • Supply & Demand Processes TecCom is the leading B2B communications platform for the independent automotive aftermarket. It brings parts manufacturers and parts dealers together and creates effective business communications between them. The platform also standardises and automates business processes and supports platform users throughout the entire product life cycle, from availability checking to after-sales service. With the knowledge and expertise it offers effective technical consultancy and dependable, ongoing aftersales service.
competitiveness of the aftermarket and to enable business relationships to be run at a higher quality level. Its unique data system and continuous product development enables TecDoc to offer innovative and efficient
distributes it across the automotive market. Thus it supports businesses that place high value on customer focus and efficient internal processes. One of the primary objectives for TecRMI is the development of an industry standard for the repair market and the fleet and leasing market. The aftermarket segment in India, though growing at the rate of 10-15 percent annually, is highly disorganised. Even in Europe about 25 years ago the spare parts market was disorganised and fragmented. TecAlliance was able to make significant contribution by bringing standardisation and information exchange to streamlining the operations in Europe. According to the company, Indian market is similar to what Europe was in late 80s and therefore, the company is hoping to bring its experience and
TecDoc • Product & Vehicle Data TecDoc is an electronic information system for the precise identification of parts for the independent automotive aftermarket. It links parts manufacturers with dealers and workshops around the world by gathering product data and distributing it across the market in a standardised form. The primary objective of this is to strengthen the
solutions for industry, dealers and workshops.
TecRMI • Repair & Maintenance Data TecRMI is a Europe-wide provider of information services that gathers and professionally edits OE-compliant technical information directly from vehicle manufacturers and
expertise to India. Unlike five years ago, David sees the mood in India now is very positive. The new generation in India operating in aftermarket business is willing to invest for the future. With over 120 models of cars in India, the aftermarket business has to be more organised and it should leverage new technologies, he said. AutoPartsAsia | JUNE 2015 | 71
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focus
Scania Comes To Conquer
Scania Commercial Vehicles India’s plant in Narasapura, near Bangalore
By T Murrali
S
cania Commercial Vehicles India Private Limited commissioned its bus manufacturing facility recently in Narasapura, near Bangalore, where it has its truck manufacturing unit. With this Scania’s investments in India has reached Rs 300 crore.
its production capacity to 5,000 trucks and 2,500 buses. By the end of 2017 the headcount also will go up to 800. Martin Lundstedt, President and CEO, Scania CV said: “Scania’s bus
manufacturing facility in Narasapura is yet another milestone in our strategic plans for India. Here in India, we will always strive to create a win-win situation for our partners. The goal is to draw on local
talent and competence and combine them with our global experience – making all the facilities part of our global network and in turn creating tremendous value across the global value chain.”
Scania from Sweden had inaugurated its truck manufacturing facility in October 2013. At present it has a capacity to produce 2,500 trucks and 1,000 buses a year. The bus facility will serve both the Indian market, and as an export hub, other markets in Asia and Africa. Over the next five years, the company aims to increase Anders Grundstromer, MD, Scania India and Martin Lundstedt, President & CEO, Scania CV AutoPartsAsia | JUNE 2015 | 73
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Bus Plant of Scania Commercial Vehicles India
Anders Grundströmer, Managing Director, Scania India, and Senior Vice President, Scania Group, said: “We entered India with a vision to provide sustainable transport solutions to the country and formulated various channels for promoting it. The establishment of our bus manufacturing facility plays a major role in realising this vision. The facility will have also a state-of-the-art bio-gas unit to produce alternative fuels locally.” Klas Dahlberg, Senior Vice President Buses & Coaches, Scania Group, said: “The geographical position of India will be
advantageous to Scania in connecting with the South East Asia, Africa and the Middle East. India’s new vision favours international players to set up manufacturing facilities here and we will accomplish our vision in India as well as globally.” The 12,500 sq meter bus factory has three buildings specifically designed to accommodate the assembly operations, paint shop and shower test. As of now the company has localised 90 percent of the parts required for building the coach. It has developed about 30 vendors for that. The remaining parts are imported from Spain
Scania’s Ethanol City Bus and Metrolink HD 13.7
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and Turkey. Though the installed capacity is for 1,000 buses a year, the plant can make only 675 units annually with the current set-up. During the rest of 2015 it hopes to make 300 buses. It will be 650 next year. About 50 buses are plying in India now. They were built in Malaysia. The bus plant of Scania Commercial Vehicles India builds two models of buses: 13.7 and 14.5 meters and hopes to increase the models. By the end of 2015 the company will make 12meter long city buses which can run on ethanol also. The plant has flexible
manufacturing facility to make any model. The frames and the driveline comprising of the engine, clutch, gearbox and axles, come from Sweden. The truck facility of Scania, which is about 200 meters away from the bus plant, but within the campus, assembles the chassis. The bus plant has 26 stations with a 12-hour TAKT time. (TAKT is derived from the German word, Taktzeit. TAKT time is the rate at which products or services should be produced to meet the customer demand). The company has set itself a goal to reduce the TAKT
paint on top of it. This will protect the super structure of the bus from the vagaries of weather.
Welding Line
time to four hours during the course of this year. With the current TAKT time it takes about 24 days to build a bus. Once the TAKT time is reduced to eight hours the building time will come down to 16 days. Under the present conditions any customer
whole of last year we spent 90 percent of the time for training and only the rest for building the buses.
Assembly Line
Later the shell goes for rust protection coating. At this bay, the shell is given dual protection - galvanising and with a two-component
The chassis arrives from the truck plant. It comes as one piece with the provision to bifurcate it. Accordingly the chassis is split into two by removing the bracket. Generally the bus chassis made by other companies and sent to coach builders will have a totally different interface and these chassis can also be driven. As the chassis for the Scania bus facility comes from the same campus, the steering box is not assembled and it just has two axles and other functional parts including the drive train. The two portions of the chassis are positioned apart, depending on the
The assembly operations begin with the frames getting welded, guided by the fixtures based on the
Bus ready to be handed over to customer
Body Finishing
has to order for a bus before six months of the actual delivery since there are lead time logistics and production process. However, the company manages by building up inventory prudently. The company has 268 people and 26 percent of them are women. The
length of the bus. Scania uses high tensile and galvanised steel to build the shell of the coach. It uses steel plates with a thickness of up to six mm for reinforcements and to comply with the roll-over protection norms. Klas Dahlberg, Senior, Vice President Buses & Coaches, Scania Group AutoPartsAsia | JUNE 2015 | 75
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Martin Lundstedt
Market Forces Evident In Asia, Africa And The Middle East
F
or Scania,97 percent of the sales come from outside Sweden where the company is headquartered. Off late sales have been dropping in North America and Europe while it has been encouraging in Asia. To a question on the company’s strategy in addressing the new challenges, Lundstedt, the man who will be moving to head operations at Volvo, the Swedish commercial vehicle making peer, said that10 to 15 years ago about 70 percent of the sales were from Europe and a bigger portion of the rest was from North America. Today it is 40 percent from Europe and the rest from Asia
and the Americas.“We are seeing the market forces in Asia, Africa and the Middle East. We see very high aspirational standards for sustainable transportation in Asia, especially in India, China and ASEAN,” he said. In addition factors like the prevailing congestion, and focus on road safety and mobility to cope with the economic growth, are creating enormous opportunities for the company. Lundstedt, who had spent more than two decades with Scania, said, “It is fine for us even if we grow at three to four percent to start with. We want to grow with the segment that are most advanced.
length of the bus, before taking up the dressing process. At the tenth stage the shell is fully ready and it weighs around 2.8 tonne. It is then mounted on to the chassis; to make it rigid the shell is welded to the chassis at some places while the others are bolted.
Scania’s revenue from Asia currently is 19 percent and by 2020 it hopes to touch 30 percent.
The shell along with the chassis is moved to another line where the electrical connections are provided in addition to setting up the interiors, including seats. This is followed by the finishing fitments, pasting stickers etc. The vehicle is moved to fill fuel, power steering oil and coolant oil. It now
gets into driving condition and is moved for wheel alignment. It is followed by brake test and shower test where the vehicle is put under high pressure water shower for 45 minutes. The bus drives to BBMQA (Bus Body Manual Quality Assurance) unit where all the connections for
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Take for example, in Hong Kong we have 35 percent market share in the long-haul sector. And people are not willing to go to other solutions if they are convinced with the one like we offer, which gives better fuel economy, better uptime etc. This will happen here in India also.” Scania’s revenue from Asia currently is 19 percent and by 2020 it hopes to touch 30 percent. This also depends on the maturity level of the market. “For instance, in Russia, when the shift came from imports to local supply, the growth was quick. The shift took longer time but when it happened it was very fast,” Lundstedt said.
electrical and torque of fasteners are checked. Now the bus will weigh about 12 tonne. Finally the bus reaches the ‘delivery station’ where it is thoroughly checked andtest-driven. Then it goes to the `Green Stock’ where the bus is declared fit to be delivered. The factory has an audit bay for the vehicles selected on a random basis, for thorough validation. A separate team takes up this assignment, though at every stage there is quality check by the people in the assembly operations.
Systematic Approach
On the initiatives taken at Narasapura plant to match the process capabilities level, Klas Dahlberg, Senior Vice President (Sales & Marketing – Buses & Coaches), Scania CV AB, said, “Quality is the corner stone for us. If we do not follow uniform norms then it will jeopardise quality. We follow Scania Production System in all the facilities of our company across the world. Globally we have four assembly plants in Europe. In addition we have a facility in Poland, and in Sao Paulo, Latin America. We make components in Argentina.”
focus
Sekisui Dljm Injects Power To Ramp Up Capacity
Ariel view of the shopfloor of the Chennai plant of Sekisui DLJM Molding Private Limited
By T Murrali
S
We plan to supply to the commercial vehicle segment also,” Tadahiko Yoshioka, the CEO of SDMPL, said.
“At present we are in talks with a few customers in the passenger car segment.
The company recently commissioned its green field plant in Chennai. Built at an investment of Rs 30 crore to support India Yamaha Motor, this is the third plant of SDMPL in India. The Chennai plant is located at the vehicle maker’s vendor park at Oragadam. The facility was
ekisui DLJM Molding Private Limited (SDMPL), the joint venture company between Dipty Lal Judge Mal Pvt Ltd, India, and Sekisui Chemical Co., Ltd., Japan, is planning to expand its product portfolio. It is also looking at other segments of vehicles and customers to supply plastic components.
78 | AutoPartsAsia | JUNE 2015
inaugurated by Takashi Terabayashi, Managing Director of India Yamaha Motor Private Limited, along with the officials from SDMPL. Yoshioka said the plant has been constructed in a 15,000 square meters plot with a built up area covering half of the plot. The company has installed nine moulding machines. There is constructed space for 20 machines. With the available vacant space,
the company can enhance capacity four-fold. The Chennai plant supplies around 20 parts to India Yamaha for its motorcycles and scooter models. Gradually it will increase the number of parts to 60. “Our capacity ramp up depends on India Yamaha,” he said. India Yamaha makes around 400 vehicles daily. It will increase volumes soon. SDMPL will also
match its supplies, he said. The parts supplied by SDMPL are painted by India Yamaha, as the vehicle manufacturer has spare painting capacity. Once the OEM increases vehicle production capacity, SDMPL will have a chance to supply painted plastic parts. “We are planning to infuse additional funds and the total investments in the Chennai plant will touch Rs 100 crore in the next three years. This will be for commissioning additional moulding machines and paint shop,” he said.
Innovative Technology SDMPL has several features which other Sekisui plants elsewhere in the world do not have. Firstly, the state-of-theart paint shop has been specifically designed for Indian environment. With the result high quality
Tadahiko Yoshioka, CEO, SDMPL with the parts manufactured by the Chennai plant
replacement parts. It has been mass producing metal replacement parts that used to be die-cast aluminum, but now converted into plastic. This helps the customers in terms of light weight, freedom of design, and cost reduction.
SDMPL has several features which other Sekisui plants elsewhere in the world do not have.
Clean Moulding The company has clean injection moulding
inside can be created to minimise the use of raw materials to make the part lighter and to get improved surface finish. This enables customers to get light weight and cost reduction at the same time. “We are committed to serve our customers by providing the technology that is demanded by the Indian market, for their existing and future solutions,” he said. On the specialty of the Chennai plant when compared with Greater Noida and Tapukara plants he said, the plant has automated robotic machines on all injection moulding machines to take out the parts. “This gives us better control of process and stable quality of the parts. Also we will have 1,400 tonne injection moulding machine for bigger parts like automotive interior parts.
Process Flow Moulding line
painted part can be produced. “Premium brand OEMs prefer our paint shop set-up and is already using our facility,” Yoshioka said. The company has capabilities to design and manufacture metal
process for making transparent parts. It is very difficult to produce transparent parts due to difficulty in controlling and avoiding dust and foreign contamination. SDMPL has a dedicated injection moulding machine at
Tapukara for making these specialised parts. The machines are fully covered to protect them from dust with positive pressure inside and antistatic countermeasure implemented. During the injection moulding process, hollow
The Chennai plant that makes plastic parts for India Yamaha has process flow following the Sekisui production system. The raw materials are loaded into the hopper/dryer and they are moved by air flow piping system. The raw materials reach the injection moulding machines and after the moulds are made, they AutoPartsAsia | JUNE 2015 | 79
focus
Inspection is done manually before the parts are packed and dispatched
Yamaha’s requirement in Japan.
All the machines are coupled with robots to pick the part after moulding operation
are picked up by the robot to be placed on to the conveyer. Later the operators pick up the parts from the conveyor and remove the flash if necessary and pack them. SDMPL’s Greater Noida plant supplies painted plastic parts with some value addition like adding decals and some other smaller components. Currently about 50 percent of the plastic parts requirements are supported by SDMPL. Sekisui Techno Molding Co Ltd supports 30 percent of 80 | AutoPartsAsia | JUNE 2015
Both Greater Noida and Tapukara plants of SDMPL have facilities integrated to their respective customers. The Greater Noida plant of SDMPL caters to India Yamaha for its scooter Alpha. The parts include side cover, painted skin parts, etc. For Yamaha Motorcycle FZ series SDMPL makes plastic manifold, fuel tank cover and allied parts.
From Tapukara plant SDMPL meets the requirements of Denso for its 4-wheeler instrument cluster parts, which eventually goes to Honda Cars India. The company also supports HMSI with skin parts for Activa and fender for Shine motorcycle. For Suzuki it supplies bracket fender for Gixxer, and box assembly and shield leg lower for the scooter Lets. In addition SDMPL supports Donaldson India Filter Systems with filter body parts. The Chennai plant currently makes skin parts for India Yamaha’s scooters Ray, Fascino and Alpha, and Saluto motorcycle. Last year SDMPL set up its New Product Development Center that oversees all the three plants. “We now have a plan to set up a Technical Center in India with test equipment installed.” SDLJM Molding has full access to the R&D resource in Sekisui Techno Molding Co. Ltd and Sekisui Chemical Co. Ltd in Japan. Depending on the project, we collaborate with our Japanese counterpart and develop new technology. Currently we are working on some new technology including foam injection molding,” Yoshioka said.
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brand trends benchmark and design based on the Ccstomer inputs. Elofic has been banking on its quality movement for its brand penetration in the market. It may be noted that the company is the first filter manufacturing company to get TS 16949. The company has been increasing its in-house metal working capabilities by the addition of heavy
Elofic supplies to Kohler Engines, Generac, Kawasaki and Lombardini SRL. In addition, the company supplies to several customers who export their products to the US. The company has been maintaining a fine balance in sales between OEMs, aftermarket and exports. If one is down, the other segments will balance the fall. This helps the
Elofic Enhances Capacity, Products Portfolio APA Bureau
E
lofic Industries Limited which began manufacturing filters for cars in 1951, has aggressive expansion and diversification plans. Towards this the company has evolved a two-pronged strategy; firstly it plans to enter various other segments in the filtration market and secondly, it is focusing on gearing up to match the emerging demand. The Faridabad-based company supplies oil, air, hydraulic and fuel filters mainly for the passenger cars, commercial vehicles and two-wheelers as original equipment. It has diversified into lubricants, engine coolants and silicon gaskets. According to the company, it hopes to reach a turnover target of Rs 500 crore by 2017. Elofic supplies filters to OEMs like Tata Motors, Mahindras and Maruti. It has co-branding arrangements with Mahindra & Mahindra. The company has several OEM customers in the international market 82 | AutoPartsAsia | JUNE 2015
also. It is a governmentrecognised Export House and has an international warehouse in the US. The company has been exporting two-wheeler filters to the American and European markets for Honda and Suzuki applications. It has ventured into the domestic segment also.
duty power and hydraulic presses. It has been streamlining its processes to ensure improved quality and efficiency of its products. With increasing infrastructure demands, the company launched filters for construction, earth
Eloficâ&#x20AC;&#x2122;s domestic products include a wide range of filter elements, plasticmoulded air filters and foam filters for all twowheeler applications of Hero, Suzuki, TVS, Royal Enfield and HMSI vehicles. It has plans to build a network of 100 distributors for this segment all over the country, while offering high-end products to its customers. Innovative engineering is an integral part of Eloficâ&#x20AC;&#x2122;s manufacturing operations. The company adopts a distinctive three way methodology to understand, implement and deliver products transcending customer expectations. New product development is undertaken based on customer specific requirements, product
moving and industrial filter segments, thus adding a new range of products to its portfolio. Elofic at present has 35 percent of its revenue coming from exports and the rest from domestic market. However, the company is looking to spread its wings wider outside India and expand its operations in Europe.
company grow at about 20 percent annually irrespective of the ups and downs in the market. The company has five modern filter manufacturing facilities. While three are located in Faridabad in Haryana, one each is at Hosur in Tamil Nadu and Nalagarh in Himachal Pradesh. It is setting up an ultra modern filter plant in Gujarat, at Mehsana district close to
Ahmedabad, where market leader Maruti Suzuki is setting up its plant. The new plant is expected to be operational by 2017 and it will help Elofic to not only enhance capacity but also the product portfolio. The company has 15 marketing offices, about 1,000 distributors and 30,000 retailers spread across the country.
brand trends Netherlands, Sri Lanka and the US. It manufactures a comprehensive range of raw material, equipment, tools and accessories used in the rubber industry, predominantly in the tyre sector. With state-of-the-art manufacturing facilities, testing laboratories and R&D centres around the world the company delivers products to the most demanding users. Products from ERCL are sold under several brands the following
Elgi Rubber Company’s Acquisitions Help Offer Innovative Solutions APA Bureau
E
lgi Rubber Company Limited, India, through its subsidiary, Elgi Rubber Company, LLC, USA, has purchased American Manufacturing and Equipment, best known in the tyre and retreading industry as Cincinnati Retread Systems (CRS) in April 2015. Founded in 1978 by Albert and Carol Penter, CRS is a leading manufacturer of equipment for the retreading industry. CRS is well known worldwide for the tread buffers, expanding hub assemblies and expanding rim assemblies it manufactures. According to the company Elgi will continue to operate CRS in Fairfield, Ohio. All staff will remain with the company. The company plans to increase CRS’s product offering with Elgi’s equipment from its worldwide subsidiaries. The CRS purchase is the company’s most recent acquisition in line with its objective of being a global single source manufacturer/supplier to
the retreading industry as against being a tread rubber manufacturer. Elgi Rubber Company Limited (ERCL), a US $ 92 million company ,is part of the US $ 700-million Elgi Group of companies in India. The company was founded by late LRG Naidu and incorporated in 1981 as a limited liability company and later listed in the Indian stock exchanges. With the tagline ‘Solutions for the Rubber Industry’ the company is in the business of manufacturing and marketing complete solutions for tyre-retreading through the “One Stop Shop” concept and gives best value for money. Elgi had a technical and financial collaboration with Oliver Rubber Company of the United States from 1984 to 1994. Realising that the precured retreading technology, popular in the US and Europe, was better suited for the developing countries, ERCL pioneered it in Asia. The company’s Precured Tread Rubber (PCTR) division, the flagship
of the company, has a combined capacity of over 25 million kg in retreading raw materials and operates through the franchise business model, augmented with the company-owned retread facilities, in South India. The company’s plants are located in Kottayi, Thimmavaram, Kanjikode, Annur, Kovilpalayam, and Kurichi. As a strategy ERCL diversified to focus on the complete range of services in retreading encompassing market surveys, project planning, training, supply of equipment and raw material, after-sales service and technical support along with plant audit. This concept has made ERCL one of the leading suppliers of retreading systems worldwide, with a strong customer base spread over 25 countries. The company has been recognized and have homologated with the leading multinational tyre brands into their support system for aftermarket. The company has subsidiaries in Australia, Brazil, Kenya, the
brands including Jet (for tyre retread and repair systems), Pincott (for rasp blades, hubs & spacers), Carbrasive (for brazed carbide tools), Midwest Rubber (for gums, adhesives and sealants) and Ecorr (for reclaimed rubber). ERCL is also known for contribution to the environment via retreading and recycling in line with TRIB requirements. The company has a state-of-the-art research facility, established at a cost of over US$ two million, the facility has research equipment which no retreader has but for a few leading new tyre manufacturing companies. The company has a Corporate Social Responsibility division. Its latest contribution is the development and retreading of tyres for the transport planes that are part of the Indian Air Force which do the rescue operations, supply of food and medicines in times of natural calamities apart from working on the security of the country. AutoPartsAsia | JUNE 2015 | 83
brand trends
Autograde Teams Up With Dubai Police For ‘Speed Kills’ Campaign
APA Bureau
‘S
peed thrills but kills’ is an adage recalled at every road accident spot and forgotten until the next disaster. The Dubai Police has embarked on several projects that will make the `speed kills’ warning a part of life of the over 2.2 million citizens of the megapolis. Factors like sudden swerving, reckless driving or not fastening the seat belt, and over- speeding have been among the major concerns on Dubai roads. A recent study has shown that in 2013, 1.4 million speeding fines were issued by the Dubai Police while 2014 recorded more than 2.2 million fines for over-speeding, an increase of 57 percent in a year. The vision of the Dubai Police is to have zero deaths for 100,000 people by 2020. The current index stands at 3 road victims per 100,000 people. In order to achieve this goal, Dubai Police is working with several agencies to promote road safety awareness programmes. One of the prominent partner of this campaign is ‘Autograde Industries LLC. Being one of the world’s leading automotive electronics manufacturer, with a key focus on making
84 | AutoPartsAsia | JUNE 2015
road safety products, Autograde attaches the significant level of involvement in increasing awareness about taking action to make roads safer. Extending support to the Dubai Police for the ‘Speed Kills’ campaign, the Managing Director of Autograde, Mohammed Ashraf said, “Road fatalities are an epidemic on Dubai’s roads. We denounce overspeeding and rash driving as it poses a serious risk of losing not just one’s life but also of the fellow motorists’’. “The objectives of ‘Speed Kills’ campaign align with Autograde’s much similar vision of contributing toward making roads safer. We are proud of this association and are looking forward to educate the UAE residents to understand traffic better and help the Government with this initiative. Moreover if the costs of accidents, usually amounting to about 1.5 per cent GDP, were to be avoided, the economy would be growing at a rapid pace,” he said. At the initial leg of the campaign which began last year, outposts were established at Jumeirah Beach, Sheikh Zayed Road EPPCO station in Tecom, Sheikh Mohammed Bin Zayed Road near Global Village, and Mirdif City Centre. The Dubai Police officers and the company’s employees were on hand
to educate UAE residents on the dangers of speeding, and answered questions about how individuals could make local roads safer, both for fellow motorists and for pedestrians. Autograde was established by the Kochi-based HKA Group which was formed in 1924 for trading in commodities and eventually venturing into trading machinery and other equipment from Europe. In 2001, HKA entered into the distribution of Siemens Road Speed Limiter and also represented speed limiters manufactured by Actia and Siemens. Market growth and technological innovations facilitated the launching of Autograde in 2007 under the name of Aasma Techno Products Private Limited, with its head office in Kochi. Aasma’s Road Speed Limiter was marketed under the brand Autograde. Autograde Industries LLC was established in UAE to manufacture and market its brand of products in Middle East. Currently the company specialises in technology research, product development and manufacturing services. Its business includes a global network of design, research, development, procurement, distribution and after-sale facilities. Its commitment to provide a safer tomorrow to its customers is met by investing in creative
and innovative products allowing the company to deliver exceptional designs and a constant flow of new technology products. Autograde’s products are manufactured locally enabling them to serve their customers efficiently. Presently, the company has manufacturing facilities in Kochi in India and DIC, UAE. Its R&D division, based out of International Technology Park, Bangalore, was established in March 2014. Autograde’s vision is to be the world leader in road safety products and services. Its declared mission is to save lives, to protect the environment and to preserve resources, thereby adding value to the economy through customer friendly policies and quality- oriented processes. The customer-oriented solutions of Autograde include the Advanced Driver Assistance System (ADAS), Certification Management System, Fleet Management Solution and electrical Multiplexing Solution. ADAS assists the drivers in their driving process. The ADAS solution is designed with a safe Human-Machine Interface which increases vehicle safety and road safety. The system has several components like: Adaptive Cruise Control; Lane Departure Warning System; Collision Warning System; Intelligent Speed Adaptation; Adaptive light Control; and Blind Spot Detection. They are primarily for the commercial vehicles but are customizable for passenger vehicles also.
brand trends
Zenith Launches Z-80 For High Quality Natural Rubber APA Bureau
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anufacturing of rubber products poses its own problems due to multiple raw material inputs and multiple production processes. Finding and choosing the right inputs and controlling the process play major part in standardising of rubber products manufacturing. The current requirements are being partially met by PA 80 manufactured by one or two plantations. The present supplies are inadequate, expensive and are inconsistent in quality, colour and texture. Transportation cost for such small quantities also add to the cost. To overcome all these constraints, a new process was developed by Zenith Industrial Rubber Products Pvt Ltd (Zenith) to make the Z- 80 rubber which is 80 percent pre-crosslinked rubber made from 100 percent natural rubber. This rubber aids processing and easily blends with Natural Rubber, SBR and other diene polymers. Z- 80 would be a boon to the rubber processing industry which would enable high productivity, better dimensional stability with closer tolerances. It finds usage in a very wide range of compounds for various applications. The advantages of Z-80 include consistent cure behaviour, translucent material, better hardness / tensile strength, comparable elongation, better tear-strength and abrasion, excellent after- ageing properties and better shelf life. It is certified by the Rubber Research Institute of India. (Refer test results in the Table) The material Z-80 is used for extrusion as it maintains the shape, extrudes faster and smoother with less die swell. Nerve of the compound is reduced significantly allowing closer extrusion tolerances. For the calendaring process, it gives smoother sheets while controlling thickness to the desired levels. It also
finds uses in open steam cures, compression moulding and transfer/ injection moulding. Due to the high mooney viscosity, it gives better mould flow and higher injection temperature and speed. It is homogeneously processed by a special patented process. It maintains uniform crosslinks similar to virgin rubber. Normally for most products Z80 can be used between 10 to 25 PHR of hydrocarbon. Z-80 blends easily with other rubbers because of its cross-linking. It has to be pre-masticated so that it forms uniform blend with other rubber. It has a stable carbon cross-link and no residual curing agent unlike other cross-linked rubber. It can be stored under normal conditions. The use of peptizing agents is not recommended as they tend to break the cross-linking already present which may destroy the properties of Z-80.
Result S No
Method
2
Test Parameters Optimum cure time, t90 at 150 Deg C (m:s) Mooney viscosity ML (1+4) 100 Deg C
3
Hardness, Shore A
4
1
a) b)
ASTM D 5289-1979 ASTM D1646-2004Method A
Z 80
PA 80
4:37
3:59
18.2
25.2
ASTMD 2240-2004
63
59
Stress strain properties 300% Modulus, kgf/cm square IS3400 part 1-1977 Tensile strength, kgf/cm square IS3400 part 1-1977
82.5
69.7
181 165.8
5
Elongation at break, % IS3400 part 1-1977 Change in Physical properties after 72h at 70 Deg C IS3400 part 4-1987
a)
Hardness, units
ASTMD 2240-2004
b)
Tensile Strength, %
IS 3400 part 1-1977
-2.04
-7.4
c)
Elongation at break, %
-13.9
6
Angle tear, kg/mm DIN Abrasion loss, mm cube Carbon black dispersion rating*
IS 3400 part 1-1977 -6.3 IS 3400 part 171974 4.9 ASTM D 5963-2004 Method A 229 ISO 11345, Method B X= 4.2 Y = 7.9 % dispersion = 83
c)
7 8
The material can be mixed in an open mill and or internal mixer. Ingredients can be added in the same process as done with the natural rubber. It has high tensile strength equivalent to natural rubber and offers dimensional stability after curing with sulphur and accelerator. Despite its low heat built-up, the material has better heat resistant properties. It has no residual curing agent unlike other cross-linked rubber. The unique material is available in sheet form and packaged in low density polyethylene in bales. Standard packing is 25 kg per bale. It is stable and does not increase viscosity during bin storage and should be stored under normal conditions like natural rubber. Z- 80 has been developed by trained technical engineers in the well-equipped laboratory of Zenith
522
541
+5
+6
5.4 222 X= 4.8 Y= 8.5 % dispersion = 88
* Dispersion rating X scale is from 1 to 10 (1 is poorest, 10 = best, Y= 10 represent no agglomerate
Industrial Rubber Products. The company has already applied for a patent for this unique process. The company has been at the forefront of manufacturing industrial rubber since 1965 and continues to be a leading manufacturer and exporter of quality rubber sheets, rubber floorings, coated fabrics and rubber mats. As a government-recognised export house, over 80 per cent of its annual production of 25,000 tonne of rubber sheets is exported to five continents around the world. Owing to its dedicated and trained manpower, capability to innovate and uphold Total Quality Management (TQM) all the time, Zenith has a wide base of discerning customers the world over. All the components used by the company are REACH (Registration, Evaluation and Authorisation of Chemicals) complaint as per the stipulation of the European Commission. AutoPartsAsia | JUNE 2015 | 85
brand trends
Al Dobowi Delivers Future Motive Power Solutions APA Bureau
A
l Dobowi group has gone beyond tyres while maintaining its core values doing business globally and having a diverse base of employees. SurenderKandhari, Chairman of Al Dobowi has turned it as a multinational company focusing on tyres, batteries, rubber products, and industrial hoses among several others. The group continues to look for
sound solutions and to search for reliable partners based on the determination to find a competitive advantage fuelling growth and accelerating success. Its objective is to provide power to lead in today’s increasingly competitive market, deliver reliability in this ever changing and fast paced environment, and bring competent logistics in providing results to its clients worldwide.It has propelled itself forward into new and exciting challenges, steadily growing to become a major business entity across multiple industries. In 2009, the group decided to invest in manufacturing and sales of industrial lead acid batteries. These motive power batteries are used in the material handling equipment including fork lifts. Thus, Eternity Technologies was established, becoming an integral part of Al Dobowi Group. Based in United Arab Emirates, its manufacturing facility in Ras Al Khaimah was officially inaugurated by the Emirate ruler, His Highness Sheikh 86 | AutoPartsAsia | JUNE 2015
Saud Bin Saqr Al Qasimi,in April 2011.This ambitious AED 200 million project has quickly advanced into production and its first commercial unit was produced in September 2011. With a vision to have the bestin-class manufacturing facility, designed to sell its products globally, fulfilling and at par with all international standards, the company that was funded by Al Dobowi sourced most of the equipment from Europe. Eternity Technologies estimates that the global market for motive power two volt cells is in excess of 25 million units per annum. This global market has been growing at five to ten percent per annum and higher growth levels are seen in developing economies such as South America and Africa. Although Europe is an established market, it is still the world’s largest market for this product. It is no surprise then that today,majority of the sales come from Europe particularly in Germany, UK and Spain. Though the company sells to distributors, it is also approved for use by some of the major European material handling OEMs. This is a testament to the swift acceptance of its production facility and product quality in Europe. Indeed, it saw the ISO 9001 certification as a key element to product approvals by notable OEM’s. However, Eternity Technologies sales strategy is not solely based on the European market. Other markets have already been penetrated, namely, South America, Australasia, South Africa and Turkey. The Middle East is Eternity Technologies’ home market and the mission is to become the leading stored energy solutions provider for the region. This focuses the perspective of the company to rapidly become a dominant force in the region, which is expected to become faster growing regions in the world for these product portfolio.
Eternity Technologies’ plant manufactures both DIN and British Standard cells to complete an international product range. Among the design features that enhance its product technology is the use of non-woven material for its tubular positive electrode. The use of this material ensures the highest productivity whilst maximising the active material utilisation. By utilising the latest material technology, the company is able to take full advantage of the value engineering of its batteries. In a mature product, key value engineering skills are an essential economic factor in manufacturing costs. Another aspect that makes it distinctive is ts strategy to manufacture different products specifically for different applications, rather than a one-size-fits-allapproach. The environmental impact by the plant was another prime importance for the company. Eternity Technologies has achieved both ISO 14000 and 18000 in 2013 and has already won two UAE awards for its environment management. The target is for 100 percent use of all lead entering the plant with the use of innovative recycling processes. Through constant efforts towards continued productivity and well maintained quality, and with its application-specific customised products, Eternity Technologies is enabling Al Dobowi to provide the
utmost motive power solutions of the future, today. This is made possible by Kandhari that holds a steadfast perspective of what’s ahead, strongly upholding key values to lead, and taking opportune and prudent actions to deliver these solutions.
ASIAN TYRE & RUBBER CONFERENCE 2015 TECHNOLOGICAL & INNOVATIVE EXCELLENCE IN GREEN MANUFACTURING FOR SUSTAINED GROWTH JUNE 12, 2015, AT HYATT REGENCY, CHENNAI, INDIA
JOIN THE BIG LEAGUE
Join the world class event, share ideas with international experts and enjoy enchanting networking sessions
League of the Distinguished: Harm Voortman, VMI, Netherlands; Sarangarajan T, Hyundai Motor India; Thomas Yager -NASA, USA; Ashoke Karmokar, Bridgestone, Japan, Mike Norman, VMI, Netherlands; Dirk Reurslag- VMI, Netherlands; Hauke Paul - HF Group, Germany; Surender Singh Kandhari, Al Dobowi Group, Dubai ; V. Krishnaram, EMRALD Tyres, India; David Stevens, TRIB, USA; Colin Clarke, Schill & Seilacher, Germany; Katrina Cornish- University of Akron, USA; Dr. Gerry Potts, TMSI / Mesnac, USA; Rajiv Budhraja, ATMA, India; Dr. Shaun Immel, Micropoise, USA; Patrick Yeo Ek Meng, SGX, Singapore; Milind Kulkarni- SIEMENS, India; Devdas Suvarna, Bainite Machinery, India; Peter Taylor, UK; Shishir Desai, Tata Steel, India; Tai Qisheng – Goodway / GIIB, Malaysia; Karan Chechi – Tech Sci Research An initiative of :
ASIAN BUSINESS MEDIA LLP
Contact Details: Antony Powath - +91 9833901586 Email: antonypowath@rubberasia.com Website: www.atrc.in
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events
Latin American Auto Parts Expo Gains Momentum Over 300 companies to participate in the show during June 18-20, 2015
L
atin Auto Parts Expo, the Latin American trade fair for auto parts and components, is scheduled for June 18-20, 2015, at Atlapa Convention Center, Panama City, Republic of Panama. With its duty-free zone, Panama is a strategic location for the Expo. Located at the cross roads of North America and Latin America, the expo offers
the exhibitors, visitors and other participants an opportunity to connect directly to auto parts dealers in Central and South America and the Caribbean. It is expected to have the participation of over 300 companies. The expo provides manufacturers and distributors direct access to the Latin American and Caribbean OEM, replacement parts, aftermarket parts, automotive remanufactured parts, and tuning markets. Panama has a stable, democratic and businessfriendly government. It has a strong currency, Balboa (PAB). American dollars are also widely accepted in Panama City and across the country. Panama is an
international air and ocean hub enabling travellers and cargo to reach Latin America, the Caribbean and most of the globe. The global motor vehicle aftermarket is estimated at US$395 billion. The Latin American and Caribbean markets have been growing at an impressive rate and the outlook is very positive for future increases in the new vehicle and aftermarket automotive parts industry. There are
business opportunities for several products including air conditioning, automotive lighting, LED lighting, electrical systems and batteries, electronic, cooling systems, friction and brake systems, GPS systems, undercar, new and remanufactured replacement parts, HD sound and video systems, suspension and front end systems, engine and transmission parts, chemicals and chemical fluids, equipment and tools, diagnostic systems, hand tools, machine shop equipment, service and installation equipment, waxes and polishes, computer systems and software, paint and body and retail warehouse fixtures, high performance auto parts and enhancers.
Coveted Certification The US Department of Commerce has recently granted `Trade Fair Certification’ to the Latin Auto Parts Expo. Through this certification, the Commercial Service of the Department of Commerce recognises the expo’s professional capability to organise a US pavilion and endorses the event as an excellent opportunity to showcase the US products and services. The US companies that would be present at the Expo include: AC Delco Tools & Equipment, ACE International, Advance Auto Supply Co, Ltd., AISIN World Corp. of America, Akebono Brake Corporation, B&B Manufacturing, Corp., Beck/Arnley, BOOSTane, Octane Engineering, Delco Remy, Exedy Latin America, S.A., FederalMogul Motorparts, Fujimoto America, Grant Piston Rings, Japan International Parts S.A., NAPA Auto Parts, New York Brake Co., RapidParts.com, and many more great companies.
Business Conference The Latin Auto Parts Expo will feature a oneday conference and presentations on June 19, 2015, by leaders in aftermarket sales and marketing, and the biggest innovators of tools. The main topic is: ` How to create value in Latin American and Caribbean Market’.
The speakers include Daniel Moroles, sales and market development manager for the Aftermarket Auto Parts Alliance Inc. He will give a presentation on ‘The value of joining a program group for Latin America.’ Kristel Perry, Marketing Services Coordinator for the Aftermarket Auto Parts Alliance, Mandy Aguilar, Regional Vice President of The Parts House, Roberto Del Fin, Manager of market development in Latin America for National Automotive Parts Association who will be giving presentation on ‘Main management skills in the aftermarket sector.’ Frank Flores, Aftermarket Manager for Mitsubishi Turbocharger of Mitsubishi Engine North America Inc. will talk on the turbochargers. In 2014, 193 companies from 60 countries participated in the Latin Auto Parts Expo.
Guest Appearance Helio Castroneves, Team Penske’s elder statesman, is set to make a guest appearance at the expo. Currently ranked second in IZOD IndyCar Series, Castroneves will be signing autographs and taking photos during the expo in Hall A of the ATLAPA Convention Center from 10:30 AM to 3:30 PM on June 18, 2015. Castroneves became the first driver to win back-toback Indy 500s in his first two starts at the Brickyard in 2001 and 2002 and won again in 2009. AutoPartsAsia | JUNE 2015 | 89
events
INAPA Jakarta- Gateway To ASEAN Auto Parts Market
INAPA 2015 held at PT Jakarta International Expo Centre
By T Murrali
I
ndonesia is the third largest consumer of motor vehicles in the developing countries after China and India. With over 20 million cars and 50 million scooters it is the major market in the ASEAN region. Vehicle growth is considered as a vital component of industrial development in Indonesia. The country is the production base of several global automobile companies and the entry point to the ASEAN market. It is also the centre of global trade exhibitions and conferences. One of the very successful trade shows, INAPA Jakarta, is organised by PT Global Expo Management 90 | AutoPartsAsia | JUNE 2015
INAPA 2015 had over 1,000 participants from 18 countries in addition to Indonesia
Indonesia, shortly called as GEM Indonesia. The recently concluded INAPA Jakarta 2015 â&#x20AC;&#x201C; the 7th Indonesia International Auto Parts, Accessories and Equip Exhibition - had over 1,000 participants from 18 countries
in addition to Indonesia. It attracted more than 30 percent more visitors than in the previous edition. The event is an annual gathering and the market place for international manufacturers and suppliers of auto components/parts, equipment, tools, and technology. Speaking to AutoParts Asia, Baki Lee, Director, PT Gem Indonesia, said that the first show had about 3,000 visitors, while the second grew to 6,000 visitors and the third edition witnessed about 16,000 visitors. The number of international exhibitors also are growing with about 70
Over 1,000 participants from 19 countries including Indonesia participated in INAPA 2015
percent growth for the 2015 edition. However, visitors from overseas destinations are only about five percent. “We are trying to attract more international buyers,” he said. INAPA had about 20 percent CAGR since its start. About half of the segments that participate in the show grow by 50 percent. Every edition brings in some change in the product portfolio. The recently concluded edition had more product mix; there was a dedicated section for bi-cycles, auto components, tyres and other related parts- everything clustered to facilitate the visitors. INAPA is the one-stop shop for the automotive components industry. It has emerged as a leading automotive parts show in ASEAN region because the event has five concurrent and
About 125 companies from Indonesia participated in INAPA 2015
independent expositions: Tyre & Rubber Indonesia 2015, INABIKE, IIBT, Con-Mine and Forklift Indonesia. “Not that the entire show is concentrated on the automotive industry alone; we have decided to have every section reflect the name it stands for,” Lee said.
Several tyre manufacturers including MRF participated in the Tyre & Rubber Indonesia 2015
Organising shows within show is primarily to enable visitors to choose and spend more time at the booths of exhibitions of their interest as they would want to meet the target suppliers. PT GEM Indonesia is planning to include more sections focussing on allied segments of the auto industry. AutoPartsAsia | JUNE 2015 | 91
events
INABIKE show was dominated by parts and accessories for two wheelers
There were 11 companies from India in the expo. They included India Transport Portal, Luthra Industrial Corporation, Superking Manufacturer, Supra Industries and Synthesis Winding Technologies. China had the largest contingent with more than 290 companies while the host country Indonesia had 125 exhibitors. However, the large tyre manufacturing companies from the country were missing. According to sources some companies had certain issues with Indonesia’s competitor association, on pricing. The government has fined them as they were controlling the price. Though this is happening everywhere in the world in Indonesia it was severe as the government has been treating this 92 | AutoPartsAsia | JUNE 2015
“Indian auto component manufacturers are very good in terms of quality, when compared with other mass markets.”
thrice the number of component manufacturers. However, the aftermarket is huge in Indonesia, Lee said. This has been the driving force for the visitors to the show, sources added.
issue stringently, sources said.
Lee hopes that the next edition in 2016 will see more exhibitors coming in as “we plan to position it considering other shows to be held in other markets. For the 2015 edition at least 60 clients declined to join us due to an event held in Singapore,” he said.
Indonesia has a population of about 240 million. Though Thailand’s population is lesser, the vehicle production volumes are higher. For a consumption level of about 60 percent in Indonesia, Thailand has
Lesser participation from India was a matter of concern for PT GEM Indonesia. Lee said the company is looking at several options to enhance participation by arrangements with media houses to promote the event in India.
Q: Why participation from India is less than that from other countries? Lee: I think the focus of Indian companies are OEMs and getting into this segment in Indonesia is difficult due to the large presence of Japanese manufacturers. I know it is difficult for the OEM segment as Indonesia has very few vehicle manufacturers. Recently Isuzu and Mitsubishi had opened their new manufacturing facilities as they wanted to increase capacities by about 30 percent.
Baki Lee, Director, PT Gem Indonesia
Shows Within Show – The PT GEM Stategy In an exclusive interaction with AutoParts Asia, Baki Lee - Director, PT Gem Indonesia, explained the various strategic initiatives the company has taken to promote trade shows in Indonesia.
Q
: What is the strategy behind having independent exhibitions under different names? Lee: This is basically our plan for the future. As we work with many clients they are used to see segmentation based on parts category. We are offering this facility based on the segments such parts for two wheelers, cars and commercial vehicles. I think this is easy for the visitors as they can choose to spend more time at the booths of exhibitions of their interest. The visitors would want to meet the target suppliers and the segmentation will enable the visitors to come back to the show in future. Q: Which are the other segments that you are planning to organise dedicated exhibitions for? Lee: Next year we will have separate sections for ‘Audio’ and
‘Modifications’ for vehicles. This is because the aftermarket potential in Indonesia is huge. Q: The current show had only display and there were no demonstrations that is typical of trade shows - why? Lee: Yes; there were only products displayed and no demonstrations held. We are planning to go step by step. We have reached a level of strong position, as a leader in the Southeast Asian region. We want to showcase products and demonstrations in future editions. Currently our expo is targeting only businessmen like sellers, resellers, distributors and others. By getting into new initiatives, including organising demonstrations etc. for the visitors, we will try to enable them to enhance the skill levels. Currently the show is focusing more on aftermarket.
When it comes to auto components manufacturing, Indonesia has about 300 companies operating in this space. Even in this over 80 percent of them are Japanese. This is also a major concern of the Indonesian government as it wants to increase car production up to 2.5 million by 2016. In 2014 the production was about 1.3 million. Indonesia has a population of about 240 million. Though Thailand’s population is less, the vehicle production volumes are higher. For a consumption level of about 60 percent in Indonesia, Thailand has thrice the numbers of component manufacturers. However, the aftermarket is huge in Indonesia. India can look at it. Q: Automechanika is the largest show for aftermarket and participation from India is high in quite a few editions? Lee: Yes I agree. India is very strong in tyres and therefore, the participation from tyre companies in India is high in INAPA. Here the focus is aftermarket. Q: How are you planning to promote the brand INAPA in India? Lee: We hope to associate with partner companies to build the brand. We are also trying to meet with ACMA for partnership. We are also talking to Indian Embassy here. Q: Is there a particular reason for you to look at India for participation? Lee: Yes of course; the Indian auto component manufacturers are very good in terms of quality, when compared with other mass markets. Currently about 90 percent of automotive aftermarket products are dominated by Chinese parts. I think Indian companies must utilise this opportunity. AutoPartsAsia | JUNE 2015 | 93
insights
Innovate To Win By Louis P Rumao
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he future looks good for the global auto industry as production is expected to soar to more than 100 million units by 2017. Mega suppliers, with deep pockets for R&D and expansion, and those who offer new technology, or other innovations for total cost management to the automakers have rebounded from the Great Louis P Rumao is AutoParts Asia’s Correspondent in the US. He is a Materials Engineer with over three decades of automotive experience. He is a consultant to automotive rubber and plastics suppliers.
94 | AutoPartsAsia | JUNE 2015
Recession of the last decade. These suppliers are expanding in the rapidly growing global markets, especially China, Mexico and India. That’s important because in the next 18 to 24 months OEMs will be giving out contracts worth hundreds of billions of dollars. Various surveys have indicated the following areas of concern for automotive suppliers. They are Cost reduction, Risk management, Technology advances and new entrants, and Globalisation.
Cost Reduction Cost reduction is critical, but the industry has recently been emphasising total cost, not just price reduction. One of the
OEMs strive for a waste-free and defect-free value stream to manage total cost
approaches is by working with suppliers in the initial design process so that the suppliers can offer their expertise in advance. This is in contrast to designing a part or system, and then bringing the suppliers in and telling them “make this part this way”. OEMs are striving for a waste-free and defect-free value stream to
By 2019, global platforms are expected to account for 75 percent of the world’s light vehicle production, up from about current 65 percent, requiring global suppliers
manage total cost. It also means paying attention to logistics, such as finding the best places to source or
OEMs to take advantage of economies of scale through modular designs among common platforms. By 2019, global platforms are expected to account for 75 percent of the world’s light vehicle production, up from the current 65 percent, requiring global suppliers. One example of such global mega suppliers, Johnson Controls, Inc. produces door panels and consoles for one of Chrysler’s vehicles in USA, Germany, Hungary, the Czech Republic, China and South Africa.
Risk Management OEMs are having more dialogue with the suppliers for advice on how to better manage total cost and improve product quality. OEMs are pleasantly surprised by the responses from suppliers about beneficial improvements they can implement. OEMs are rewarding suppliers with longer contracts - instead of, say, a five year contract for one product cycle, suppliers can get a contract to last two product cycles. This helps suppliers in their planning. Another concern is about supplier capacity strain. The current popularity of trucks and SUVs, due to lower gasoline
business. Technology is changing so rapidly that OEMs will have to seek out new suppliers, even Apple and Google, to support software, radar and a multitude of sensors for automated vehicles of the future. Auto industry, prodded by savvy consumers and competition, is adopting a lot of new technologies. These will provide innovative suppliers with new and profitable opportunities.
Globalisation Automotive is one of the most global industries – second only to electronics. Indeed, the automotive industry has been at the forefront of establishing global infrastructure.
Smarter supply chain can track its cargo containers anywhere across the globe
As other industries begin to catch up, they are struggling with some of the same operational issues automotive supply chain executives have faced for some time: namely, quality and delivery reliability. These two issues are the top challenges for the auto industry. After many years, they have learnt that quality goes hand-inhand with price they negotiate for a given component.
manufacture parts and avoiding a situation where a natural disaster may shut down a supplier, causing a worldwide shortage of parts. Another part of managing total cost is to use modularity, allowing
costs, has put a real strain on supplier capacity. OEMs are helping in several ways, including help with acquisitions of capital, overtime compensation and concessions on 24/7 operations.
Technology Advances The automotive industry is always on the look-out for new suppliers who can help in all aspects of
Timely delivery is another concern - at any given time, more than 15 million containers are traveling through international waters or waiting to clear customs. These deliveries face many risks: delays, diversion, and even physical damage. For traditional supply chains, cross-continental transit typically means loss of traceability. Smarter supply chain can track its cargo containers anywhere in the world. Instrumented containers collect information and report on their location, assuring in-time delivery. AutoPartsAsia | JUNE 2015 | 95
Perspective
Four Megatrends To Impact Indian Logistics Growth
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rospects of the logistics sector in a country are dependent on factors/trends that drive or restrict growth. Four mega trends are expected to impact the growth prospects of the Indian logistics sector in India. They are GST and preparing for the postGST scenario; the Revised Land Acquisition Act ; enhancing regional transport links in South Asia; and e-commerce, according to the market analyst group, Frost & Sullivan.
implemented by early 2016. The proposed GST model for India is expected to absorb or replace most of the existing direct and indirect taxes levied by the Central and State Governments on all products and services. As a result of GST, logistics service users or manufacturing industries would have to reorganize their overall distribution infrastructure. LSPs serving any specific industry would have to realign their operations to match this restructuring.
“These mega trends would have varying impact on different stakeholders within the Indian logistics sector. For logistics service providers (LSPs) these mega trends predominantly offer growth opportunities rather than challenges. However, LSPs need to understand the logistics user industry needs emerging from the impact of these trends to tap the opportunities,”
Frost & Sullivan finds that most of the logistics users and LSPs are not prepared to deal with the post-GST scenario. Roughly, just about 15 percent of the LSPs and 23 percent of the logistics users are reported to have taken some initiative to deal with the situation.
Srinath Manda, Program Manager, Transportation & Logistics Practice, Frost & Sullivan, has said.. Frost & Sullivan has launched its whitepaper titled, `Mega Trends in Indian Logistics Sector for 2015-16’. The whitepaper highlights the major trends expected to significantly impact growth prospects of the Indian logistics sector during 2015-16, and understand the perspectives of key stakeholders on the impact of these trends. GST regime: According to Frost & Sullivan, it is expected that the uniform GST regime in India will be 96 | AutoPartsAsia | JUNE 2015
Land acquisition Act: The primary reason for the delay in most infrastructure projects (including those from logistics sector) in India has been the challenge of land acquisition. The Revised Land Acquisition Act would benefit developers of logistics infrastructure, investors participating in PPP projects etc. Delayed logistics infrastructure projects are expected to be completed quickly, new planned projects are expected to be launched and other smaller logistics are also expected to gain momentum. Transport links in South Asia: Moving to the impact of enhancing regional transport links in South Asia, this region’s economic integration is primarily inhibited by the poor state of transport connectivity among the member countries. Multiple initiatives to strengthen transport connectivity are in the process. However, there is need for coordination among transport corridors being promoted by these different bodies to maximize network integration and provide a major boost to economic activities. At the current growth rate, opportunities from logistics market in India’s South Asian trade is likely to reach about US $5.18 billion by
2020. However, if economic ties are improved by efforts of the new Government, these prospects are likely to reach around US $6.5 billion. E-commerce: Coming to the impact e-commerce, Frost & Sullivan analysis finds that online retailing currently occupies just around seven percent of the organized retail sector in India. However, this sector is witnessing a strong growth and is receiving heavy investments. Online retailers are competing not only on prices but also on shorter delivery cycles and service coverage. Frost & Sullivan opines that LSPs need to understand the different supply chain model and logistics service needs of this segment to be able to tap the existing opportunities. This Whitepaper is part of Frost & Sullivan’s Transportation & Logistics Practice which works closely with leading logistics service providers, third party logistics companies, transporters, warehousing and distribution companies, cold chain logistics providers, shipping companies, freight forwarding companies and express cargo companies among others, to help address their business challenges and tap emerging opportunities in a constantly changing industry environment. NB: Photos used for representational purpose only.
Book your
booth now! International Exhibition on Technologies for Automotive Manufacturing
7 â&#x20AC;&#x201C; 9 July 2015 Chennai Trade Centre, Chennai, India www.aes-show.com
Who Should Exhibit? Providers of equipment, systems, machineries, tools and software used in the car and car-part factory should exhibit at the show. Suppliers of production, Assembly line equipment, Manufacturing automation solutions, IT solutions, Testing & measurement solutions, Adhesives & sealants, Coding & marking, Casting & forging, Fasteners, Compressed air solutions etc. form the exhibit profile of the Automotive Engineering Show. Bookings open For more information, please contact: sameer.khedkar@india.messefrankfurt.com +91 22 6757 5900 (Ext.: 935)
Perspective
Auto Parts Industry Set To Touch $16.5 Billion By 2021
T
he total manufacturer-level parts revenue in India will grow by a CAGR of 12.4 percent (2014-2021) to reach $16.5 billion by 2021. Demand for routine maintenance parts such as motor oil, wiper blades and brake pads will increase at least 10 times faster across India than in North America and Europe. The poor condition of roads and, consequently, the increased wear and tear of automobile parts are
opening up new growth opportunities for part providers,” Avijit Ghosh, Frost & Sullivan’s Automotive and Transportation Principal Consultant, has said. “For example, Volkswagen India plans to develop engines and transmissions in India in a bid to raise locally-made content in its vehicles from 70 to 90 percent”, he added. However, aftermarket participants face several challenges that curb their potential in the Indian market. They include: -
“Independent aftermarket vendors must focus on the mass supply of parts to multi-brand service chain outlets such as myTVS, Carnation and Castrol Pitstop in order to ensure that car owners receive value for money,” Ghosh has said. “Venturing into the used car and car exchange businesses will also prove profitable for dealers in the Indian automotive aftermarket’’, he added. Strategic Analysis of the Indian Automotive Aftermarket is a Strategic Insight part of the Automotive &
• The price-competitive unorganized sector which eats into the revenues of organized aftermarket participants.
heightening the need for vehicle maintenance in India. Along with the country’s rapidly emerging status as the manufacturing hub for global automakers, this is strengthening the automotive aftermarket in India, says a new analysis from Frost & Sullivan titled, `Strategic analysis of the Indian automotive aftermarket’. “Global automakers operating in India are looking to source parts locally in order to cut costs in a market dominated by cheap small cars, thus 98 | AutoPartsAsia | JUNE 2015
• Counterfeit components account for 45 per cent of passenger car aftermarket part sales owing to the lack of a mandatory standard and the unchecked production and import of counterfeit parts. • Close to 70 percent of customers shift to local independent aftermarket service centres within two years of their car purchase. Independent aftermarket suppliers can assist their service partners in seizing this opportunity by providing high-quality parts at a lower price. The anticipated inclusion of a section on aftermarket standards in the Motor Vehicles Act will help reduce the sale of counterfeit components.
Transportation Growth Partnership Service programme. This study discusses vehicles in operation, key industry trends, consumer trends and major market participants in the Indian automotive aftermarket. It also offers a forecast of manufacturer-level revenue and evaluation of wholesale parts and service channels, Frost & Sullivan has said. NB: Photos used for representational purpose only.
GLEANINGS - India
Seventeen Indian Dealers Named GM International Grandmasters APA Bureau
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eventeen dealers from India recently became 2015 GM International Grandmasters in San Francisco, California, this weekend. They were among the 167 dealers in the region that received GM’s highest honour for its dealerships. The dealers from India are Aryaman from Karnal, Ashwani from Hissar, Atharva from Jodhpur, Dhansri from Tinsukia, Gallops from Ahmedabad, Geeyem from Cochin, Monarch from Surat, Nikhil from Navi Mumbai, Padam from Chandigarh, Shiva from Noida, Shree Gopinathji from Baroda, Super Sales from Bhuneshwar, Treo from New Delhi, Trident from Bangalore, Triumph from Jaipur, Unique from Kolhapur, and Venus from Bhubaneshwar. Now in its 12th year, the GM International Grandmasters program was created to reward GM’s best of the best dealers in the region for their excellence. Winners are selected based
on vehicle and parts sales, service, customer satisfaction and facility standards. They are judged on both the quantity and the quality of their operations. “We appreciate the outstanding work that our dealers and their teams are doing every day selling and servicing our Chevrolet vehicles,” said GM Executive Vice President and President of GM International Stefan Jacoby. “As the interface between our company and our customers, they are contributing to GM’s record global sales,” Jacoby added. “Our dealers are key members of our team in
“Our dealers are key members of our team in India.”
India,” said Arvind Saxena, President and Managing Director, GM India. “Like GM, our dealers are putting the customer at the centre of everything they do to earn customers for life. They have truly earned the right to be called Grandmasters,” Saxena added. During this year’s four-day Grandmasters program,
which began on May 8, participants received an update on GM’s business, brands and product plans. They also had the opportunity to get behind the wheel of several GM vehicles to experience their excellence. The program concluded on May 11 with a gala dinner for all participants. As part of its commitment to provide customers with a unique ownership experience, GM India has recently introduced the Chevrolet Complete Care programme with assured low cost of maintenance. In all, GM India has 241 sales outlets and 268 service outlets spread throughout the country.
Honda Cars India to Replace Faulty Airbag Inflator for CRV, Accord APA Bureau
H
onda Cars India Ltd (HCIL) has announced that it would carry out preventive replacement of passenger side airbag inflator of 575 units of CR-V manufactured in 2004 and driver side airbag inflator
of 10,805 units of Accord manufactured from 2003 – 2007 as part of Honda’s global recall/ safety improvement campaign concerning the safety critical part. Additionally, the passenger side airbag inflator of one unit of Civic of 2004 make will also be replaced.
The company said in a statement that there has been no reporting of any incident related to this part in India. The replacement would be carried out free of cost at HCIL dealerships across India from June 2015 in a phased manner and the company will communicate
with customers directly. The customers can also check whether their car will be covered under this campaign by submitting their 17 character alpha-numeric Vehicle Identification Number (VIN) on the special microsite which has been created on the company’s website. AutoPartsAsia | JUNE 2015 | 99
GLEANINGS - India APA Bureau
A
shok Leyland, flagship of the Hinduja Group, which had 46 percent increase in revenue with a 33 percent rise in sales volume in the last fiscal, is expected to grow 10-12 percent in 2015-16 in tune with estimated growth in the commercial vehicle industry. The growth plans of the company are based on the uptrend in the southern markets, the home market, and the increasing demand from the infrastructure sector. Better sales avenues are opening up in the defence sector also. Chances for exports also are perceived to be bright. This much-expected turnaround was in tune with the company’s rebound plan. “It’s been a very gratifying year.
All our efforts towards the transformation of the company in terms of pruning costs, rationalising overheads, reducing working capital, and at the same time investing smartly in new products and network are paying off. The industry has turned the corner and so have we. I am confident that the coming years will see us build on this momentum, Vinod K Dasari, Managing Director, said in Chennai. The company is redefining its focus on commercial vehicles and has decided to discontinue production of its multi-purpose vehicle 100 | AutoPartsAsia | JUNE 2015
Ashok Leyland Drives Into Growth Track, Stalls STILE (MPV), STILE, because of poor sales. STILE was launched in 2013 and it sold 776 units in 2013-14. Sales fell to 346 units in 2014-15. The vehicle was the product of the master co-operation agreement (MCA) between Ashok Leyland and Nissan, inked in October 2007. Ashok Leyland has decided to write down investment in the joint venture by around Rs 224 crore. however, there is no change in the equity holding pattern in the joint venture. Ashok Leyland has17 dealerships and 200odd part outlets. It is planning to sell these outlets and dealerships. Dasari said, “this is not our core business. We had set up company-owned dealerships and spare parts outlets in places where existing dealers found it difficult owing to lack of finance, as well as to avert inventory losses. These dealerships and parts outlets are basically aimed at spreading our wings across the country and addressing service/ spare parts availability issues,” Dasari said. Ashok Leyland will put up bus assembly plants in India and also in Africa and West Asia, investing Rs 20 crore to Rs 25 crore on each of them. The plan is to ship out bus kits to the
assembly plants so as to be close to the market. According to the financial statement for 2014-15, the company reported sales revenues of Rs13,562 crore as against Rs 9,943 crore in the previous fiscal. EBITDA stood at Rs 1,027 crore during 2014-15, against Rs 117 crore in the previous fiscal. Profit Before Tax (PBT) and exceptional items stood at Rs 341.26 crore during 2014-15, against a loss of Rs 596.88 crore in the previous fiscal. Net profit was at Rs 334.80 crore, against a net profit of Rs 29.38 crore in the previous fiscal. In 2014-15, the company generated surplus cash of around Rs 2,000 crores, aided by positive accruals, qualified institutional placement (QIP), sale of non-core assets, and reduction in working capital. All these helped reduce debt. Dasari said that, “our market share in the medium and heavy commercial vehicle segment has improved, with domestic sales of 66,442 vehicles. This was possible primarily due to an enhanced product range with market leaders like 3718, Boss, Captain and JanBus, as well as continued network expansion across the
country, despite the downturn. “Further, a renewed focus on customer and network profitability, new service products like AMC, insurance and extended warranty, and our vast service network, provided confidence to our customers about our capability of offering nationwide service. This combined with a completely revamped IT enabled sales process, helped us reach more customers, and understand their requirements better and faster’’, he said. While TIV in LCV dropped, the company retained domestic market share in the 2.5 tonne LCV segment on the back of the Dost Strong. “We have won many tenders in defence vehicles - both domestic and international markets, while exports of M&HCV vehicles increased 32 percent. Significant successes in export markets, a well-diversified product portfolio and a range of business verticals helped us manage the cyclicality of the commercial vehicle business. I must specifically mention the stellar support we received from our suppliers and dealers, without whom this transformation wouldn’t have been possible,” Dasari added.
GLEANINGS - International
Jlr Presents First Global Supplier Excellence Awards international and Jaguar Land Rover standards and flexibility to meet the company’s developing needs.
APA Bureau
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aguar Land Rover has recognised its top 10 direct production suppliers at the company’s inaugural Supplier Excellence Awards. Companies from Corby to Cairo were presented with trophies by British actress, Joanna Lumley, at a ceremony held in the West Midlands, the heart of the company’s UK operations. Explaining the rationale for the new award programme, Ian Harnett, Jaguar Land Rover Director of Human Resources and Purchasing, said: “These awards recognise the role that our supply chain plays in meeting our business objectives and celebrate the achievements of companies that have excelled on quality, delivery, cost and absolute certainty of supply. We are also saying a special `thank you’ to those supplier facilities that have shown `Above and Beyond’ flexibility, or have worked quickly to meet production or design challenges.” A total of 10 trophies were presented for performance in 2014: two gold, four silver and four bronze. The awards went to individual plants or facilities, rewarding ontime delivery, continuous quality, accreditation to
Over the past five years, Jaguar Land Rover has doubled sales and employment, tripled turnover, and invested over £10 billion in new product creation and capital expenditure. In 2014 it opened its first major overseas manufacturing site in China and laid the foundation stone for its new Brazilian plant, which will open next year. The company’s innovation is continuous, with 50 major new and model-year upgrade product launches planned for the next five years, offering increased opportunity for its supply base. Ian Harnett continued: “Jaguar Land Rover is gearing up for the future and we need our suppliers to do the same, enabling us to deliver class-leading vehicles to our customer base across the globe. The 10 facilities recognised through our first annual Excellence Awards are the leading examples of how our strong supply base is stepping up to the mark.” Jaguar Land Rover chose to award individual supplier locations, rather than overall groups, in recognition of the importance of a close working relationship with each facility, founded on principles of integrity, honesty and trust. As a reflection of its approach to supplier relations, Jaguar Land Rover was named
most trustworthy OEM in a recent study conducted by global information and analytics provider, IHS Automotive.
Gold Category Continental Automotive Systems Slovakia s.r.o. at Zvolen (brake calipers for the Jaguar XF, XJ and F TYPE).
vehicles and lines). Maxion Wheels Italia, S.r.l., at Dello (alloy wheels for many Jaguar Land Rover vehicles).
Bronze Category Leoni Wiring Systems Egypt S.A.E. in Cairo (wiring harnesses for Discovery, Defender and Jaguar F-TYPE vehicles).
Winner in the Gold Category: Continental Automotive Systems Slovakia s.r.o
Brembo Poland Sp.z.o.o. at Dabrowa Gornicza (brake discs for the Range Rover, Range Rover Sport, Discovery and Defender).
Silver Category Autoliv BKI at La Pobla De Vallbona, Spain (part of the Swedish Autoliv Group, (airbags, seat belts and both passive and active safety systems). ZF Lemforder UK Ltd at Solihull (corner assemblies, including suspension, driveshaft and brake assemblies). Trelleborg Forsheda AB, Sweden (mass dampers for all Jaguar Land Rover
Denso Manufacturing UK, Telford plant (heating, ventilation and air conditioning units for the Range Rover and Range Rover Sport vehicles). Robert Bosch GmbH at Ansbach, Germany (part of Bosch’s Automotive Electronics business division, the Ansbach plant is the global lead for the production of restraint control electronics). Benteler Automotive UK Ltd at Corby (part of the Benteler International Group, the Corby site supplies steel sub-frames, control arms and selected chassis components). AutoPartsAsia | JUNE 2015 | 101
GLEANINGS - International
Continental Enjoys Positive Start To 2015
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he Continental Corporation has had a positive start to 2015. In the first quarter of 2015, the sales of the international automotive supplier, tyre manufacturer and industrial partner climbed 14 percent year-on-year to around €9.6 billion. Adjusted EBIT rose to around €1 billion. Integration costs and one-time expenses for Veyance of €37 million had
a negative effect on the company results in the first quarter. “Given the sluggish development in our sales markets, the start to the current year was very encouraging. We anticipate that the replacement tyre market in Europe will improve in the quarters ahead. As a result of the positive development in new registrations,
particularly in Western Europe, we also expect an increase in the number of passenger cars produced. Accordingly, our sales and earnings will also continue to improve in the coming quarters,” Continental CEO, Dr Elmar Degenhart, said at the Annual Shareholders’ Meeting in Hanover when presenting the key data for the first three months.
Bosch Improves Sales In All Regions, Sectors
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he Bosch Group made a good start to 2015 by recording 13 percent sales growth in the first three months. After adjusting for exchangerate effects, the increase was 5.4 percent. For the current fiscal year, the global supplier of technology and services expects its sales to grow three to five percent after adjusting for exchange-rate effects. Since these effects are considerable, Bosch expects its nominal sales growth to be higher than this range.
Presenting the annual financial statements in Gerlingen, Germany, Dr Volkmar Denner, the chairman of the Bosch board of management, said: “Our economic and technological strength in our established fields of business allows us to open up new market segments.” Internet-enabled products and internet-based services would be one of the focal points of the company’s future sales growth, he said. “We are driving connectivity forward in all our business sectors and
playing an active role in shaping it,” Denner said. In 2014, Bosch launched many new products and connectivity solutions. They included web-
enabled ovens and software solutions for connected heating systems and buildings, as well as for connected industry and connected mobility.
Mitsubishi Opens Proving Ground In Thailand
M
itsubishi Motors Corporation (MMC) has opened a new product proving ground in Thailand. The new proving ground will be used to conduct quality verification testing for products before they go into production and to further increase the quality and competitiveness of cars built in Thailand. In line with the expanding local production capacity,
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MMC’s fully- owned subsidiary Mitsubishi Motors Thailand Co Ltd (MMT) is strengthening R&D functions directly related to its production facilities, one of which is the new proving ground. This is MMC’s first proving ground outside of Japan. MMT held a ceremony recently to commission the new proving ground which was attended by the Thai Minister of Industry Chakramon Phasukavanich
and other government officials as well as many of MMT business partners. Ryugo Nakao, Executive Vice President of MMC, in charge of Product Projects/ Strategy and Development, said, “thanks to the Thai government’s longstanding and consistent policies to develop the Thai automobile industry, Mitsubishi Motors has been able to grow and develop its business through MMT production hub.
Through our reinforced R&D capabilities we will nurture our engineers and contribute to the Thai government’s aim of investment expansion in the research and development area’’. “Mitsubishi Motors will continue to regard its operations in Thailand as one of its pillars and will grow and develop our business hand-in-hand with the Thai automobile industry,” he said.
GLEANINGS - International
Navistar Opens Proving Grounds In New Carlisle APA Bureau
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he US-based leading manufacturer of commercial trucks, buses, defense vehicles and engines, Navistar Inc., has opened its proving
grounds in New Carlisle, Indiana. This is to test the company’s entire portfolio of products: Class 5-8 commercial trucks, school buses and military vehicles. Recently purchased from Robert Bosch LLC, the
668-acre site includes a threemile paved and banked oval with several additional testing capabilities. They include, brake testing capabilities along with infrastructure, complete instrumentation and computerised data acquisition. In addition it will take up structural durability testing/accelerated mile accumulation with road profile capability using accelerometer and strain gage data and multiple road surfaces including chatter, impact, cobblestone, undulating, resonance road surfaces, high speed oval, gravel, body/chassis twist event
and off- road surfaces. Besides, specialised testing such as vehicle noise and handling, centreof-gravity, rollover and roof crush testing, gradeability up to 60 percent, traction control, powertrain durability among others, will be taken up. “The new Navistar Proving Grounds is a strategic addition to our product development operations and will play an important role in our mission to deliver industry-leading uptime for our customers,” Bill Kozek, President, Navistar Truck and Parts, said. “Beyond testing our latest vehicles and innovative technologies, we will also use the site as a customer centre to showcase new products and give customers an opportunity to experience our vehicles firsthand,” he said.
Raytheon To Train Honda Europe Sales Team Honda Motor Europe Limited has signed a long-term contract with Raytheon Professional Services GmbH (RPS), a subsidiary of Raytheon Company, for the outsourcing of their PanEuropean dealer training, and domestic training delivery operations in the UK and Germany.
The contract also includes the outsourcing and management of Honda’s accredited apprenticeship program, across the whole product range, in the UK. Students will be able to achieve either an Intermediate (Level 2) or Advanced (Level 3) apprenticeship through the programme.
As part of the contract, RPS will manage PanEuropean curriculum content development, product launch training and Learning Management System administration and support. RPS’ training services will cover Honda’s complete product range including Cars, Motorcycles and Power Products, and will extend to all sales, after sales, technical, and management personnel.
“We have full confidence in the capabilities and solutions RPS will be able to deliver for us,” Derek Crawford, General Manager of the Customer Division for Honda Motor Europe Limited, said.
and a further 19,000 people working in Honda dealerships across Europe, a large percentage of whom work in dealerships across the UK and Germany.
Honda’s current European Headquarters are located in Bracknell, UK, and the company has approximately 9,000 employees working for the Honda business,
“Honda Motor Europe Limited has aggressive goals to deliver increasingly innovative training and learning services to their dealers to drive performance,” Mark Oliver, managing director
of Raytheon Professional Services EMEA, said. “RPS has been successfully providing similar services around the globe, and we’ll use the skills and expertise gained from other engagements and regions to implement industryleading solutions that are aligned with Honda’s key business requirements.” Under the new contract RPS began transition activities in April. AutoPartsAsia | JUNE 2015 | 103
GLEANINGS - International
Zf Completes Acquisition Of Trw Automotive
APA Bureau
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F Friedrichshafen AG, a global leader in driveline and chassis technology, has taken over TRW Automotive Holdings Corp. These companies completed the transactions for this acquisition in
September 2014. TRW will be incorporated into ZF as a new division called Active & Passive Safety Technology. The combined company operates under the name ZF Friedrichshafen AG. “We have combined the strengths of ZF and TRW into a worldwide leading systems supplier in the automotive sector,” said Stefan Sommer, ZF’s Chief Executive Officer. “We are all very excited about our plans for the future, with the combination allowing us to capitalize on strategic opportunities and create near- and longterm sustainable value for our customers and employees.”
“The combined company is a powerhouse of automotive technologies, ranging from driver assistance and occupant safety systems, to drivelines and transmissions, and braking and steering systems,” John C. Plant, President and CEO of TRW, said. “This unique combination of advanced technologies comprehensively addresses the growing, industry-wide trends of safety, fuel efficiency and autonomous driving.” “This transaction provides significant benefits for our shareholders, employees, customers and communities, all of
which will reap the benefits of being part of a larger, more diversified global organization focused on developing the next generation of motion, mobility and safety solutions.”
Integration The closing marks the start of the integration process of TRW that is projected to last three to five years. The process will start in those areas where customers will benefit from combined activities first; this includes the development of new products, materials management, sales, and the aftermarket. “Our aim is to combine the best of both worlds,” Sommer said.
Transmission Is The Key To Future Engines APA Bureau
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n the future, engine and transmission developers will have to work more closely together to achieve significant improvements in fuel economy. At the 36th International Vienna Motor Symposium held recently Prof Dr -Ing Peter Gutzmer, deputy CEO of Schaeffler AG, called on them to do just that. “We must consider internal combustion engines, electrical components, and transmissions as a whole,” he told the audience of more than 1,000 participants. Experts from Schaeffler carried out simulations to demonstrate how the ongoing electrification and transmission design processes influence one another. The first calculation compares a C-segment vehicle with and without a 48104 | AutoPartsAsia | JUNE 2015
volt hybrid system, respectively. The 1.4-liter gasoline engine is identical in both cases but, while the non-electrified vehicle features a seven-speed transmission, the 48-volt hybrid has only four gears. The use of this electrified transmission provides a fuel economy improvement of 18 percent in the WLTC (Worldwide harmonized Light Vehicles Test Cycle), which will apply in the future. In its second simulation, Schaeffler tested a sport utility vehicle (SUV) equipped with a 3-liter V6 engine. While the conventional vehicle features an eight-speed planetary transmission, the electrified version is equipped with a 24 kW electric motor installed in a five-speed automatic transmission. The fuel economy improvement achieved in the WLTC is 14 percent in this case, but
significant savings can also be achieved even without electrification. “The optimization of the internal combustion engine therefore remains immensely important for Schaeffler,” explained Gutzmer. As an example, he demonstrated how the use of a fully-variable valve train allows fuel consumption to be influenced by changing the opening and closing times of the valves. The engine can thus be operated without throttling at low loads, which reduces fuel consumption by more than eight percent at specific operating points. At high loads, lengthening the intake valve opening time allows the tendency towards knocking and the need for enrichment to be reduced. Further savings could be achieved in all relevant operating ranges
through the use of variable compression. “When it comes to energy efficiency, variability pays off,” explained Gutzmer. “However, it must always be assessed together with the number of gears, the degree of electrification, and the system costs.” Electrification allows a greater number of drive architectures to be achieved. “Because of the wide variety of possible combinations, the automotive industry is under increasing pressure to provide an answer to the question of which drive architecture is the right one,” said Gutzmer.
GLEANINGS - International
Mercedes-Benz Advanced Crash Test Facility Takes Shape
APA Bureau
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n advanced crash test facility is being built by Mercedes-Benz in the premises of its plant at Sindelfingen, Germany. The commencement of crash testing is scheduled for next year. The toppingout ceremony for this ‘world’s most advanced’ crash test facility was held in early May 2015. “As a safety pioneer, Mercedes-Benz has played a key role in ensuring that crash tests have today become an established part of the global automotive industry. Even in the age of computer simulation, crash tests remain indispensable, guaranteeing the high standards of passive safety in our vehicles”, Thomas Merker, Director for Body and Safety at MercedesBenz Cars Development, has said. “The new Technology Centre for Vehicle Safety (TFS) represents a continuation of this pioneering role. The world’s most advanced crash test facility will enable us in future to carry out all crash tests on our own premises – not just more crash tests due to the growing product range, but
also crash tests with future, new configurations,” he said. The new test centre measures 270 by 170 metres with an internal, pillarless test arena – the heart of the crash facility – measuring 90 by 90 metres to allow even complex junction/pre-accident situations to be recreated in future. The area of the test arena is considerably larger than a normal football pitch. The facility will cost triple-digit millions of Euros, a company release said. The design of the new facility allows for collisions with many different angles of impact, including junction collisions, while also taking into account the particular crash-related requirements of vehicles with alternative drives. In addition, the company aims to use the TFS to further investigate the potential of PRE-SAFE and driver assistance systems in the event of a crash. To be able to recreate the preaccident phase, the facility will include an automated driving system for such vehicles. It is also designed for crash tests with large commercial vehicles. A sled test unit will also allow the testing of individual components such as restraint systems.
In total, the TFS will comprise an area of 55,000 square metres. The structural features also include temperature control using the waste heat from the adjacent climatic wind tunnels. Rotating crash blocks with a different solid barrier on each side for a particular crash test configuration will in future shorten the set-up times while making crash testing even more efficient. The same applies to vehicle measuring, which will be partially automated
in future, with the vehicle being moved on a turntable in front of the camera. Likewise, new digital measuring technology in the dummies with just one data cable will take over from the previous analogue technology. The new TFS will in future allow even closer integration between research, development, planning and production at the Sindelfingen site. Located in the direct vicinity, a new driving simulator, new climatic wind tunnels and a new aeroacoustics wind tunnel were taken into service in 2010, 2011 and 2013, respectively.
First Test The first crash test in the history of MercedesBenz took place on 10 September 1959 on open ground close to the plant in Sindelfingen, with a test car being driven headon into a solid obstacle. Opening a new chapter in safety research at Mercedes-Benz, this now made it possible for the crash behaviour of both vehicles and occupants to be studied under realistic conditions using test cars and dummies. In the decades that followed, it
has consistently set new crash-testing standards that have been adopted across the industry, thereby resulting in permanent improvements to vehicle safety. Despite being little used in the early years, from the 1960s onwards crash testing increasingly established itself as a reliable tool for the optimisation and testing of vehicle safety. The thorough crash testing regime at Mercedes-Benz covers not just cars, but also vans, commercial vehicles and touring coaches. Mercedes-Benz opened its first indoor crash facility in 1973. AutoPartsAsia | JUNE 2015 | 105
Calendar Automechanika Dubai 2015 Epoc Messe Frankfurt GmbH, Dubai 2-4 June 2015 Dubai International Convention & Exhibition Centre, Dubai, UAE; Mahmut Gazi Bilikozen bilikozen@uae.messefrankfurt.com, www.automechanikadubai.com SAE 2015 Aviation Technology Forum Societ of Automotive Engineers 9-10 June, 2015 Renaissance Shanghai Pudong Hotel, China Sherry McCaskey +1-724-772-7150 kramer@sae.org http://www.sae.org/events/atf/ Asian Tyre & Rubber Conference Asian Business Media 12-13 June 2015 Hyat Recengy, Chennai, India Zachariah George, 91-98401 17616 zachgeorge@yahoo.com http://http://atrc.in/ Automotive Testing Expo UKIP Media & Events Ltd 16-18 June 2015 Stutgart, Germany Dominic Cundy dominic.cundy@ukipme.com http://www.testing-expo.com/europe/english/ Latin Auto Parts Expo Latin Expo Group L.L.C., 18-20 June 2015 ATLAPA Convention Center, Panama, Republic of Panama Latin Expo Group L.L.C., info@latinpartsexpo.com http://www.latinpartsexpo.com/ Noise and Vibration Conference and Exhibition Societ of Automotive Engineers 22-25 June, 2015 Grand Rapids, Michigan, USA Melissa Jena, mjena@sae.org http://www.sae.org/events/nvc International Conference on Icing of Aircraft, Engines, and Structures Societ of Automotive Engineers 22-25 June, 2015 Hotel International Prague, Prague, Czech Republic Sherry McCaskey, kramer@sae.org http://www.sae.org/events/icing Aerospace Standards Summit Societ of Automotive Engineers 7-8 July, 2015 Crown Plaza Old Town, Alexandria, Virginia, USA Joanna Curtis, jcurtis@sae.org http://www.sae.org/standardsdev/summit/ Automotive Engineering Show Messe Frankfurt GmbH 7-9 July 2015 Chennai Trade Centre, Nandambakkam, Chennai, India Sameer Khedkar +91 22 6144 5900 http://automotive-engineering-show.in.messefrankfurt.com/ chennai/en/exhibitors/welcome.html
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Tyrexpo India ECI International Limited 7-9 July 2015 Chennai Trade Centre, Nandambakkam, Chennai, India Battelle CyberAuto Challenge Societ of Automotive Engineers 13-17 July, 2015 Delphi Innovation Center, Troy, Michigan, USA Patti Kreh, pkreh@sae.org, http://www.sae.org/events/cac PAACE Automechanika Messe Frankfurt Inc 15-17 July, 2015 Centro Banaxex, Mexico City, Mexico Messe Frankfurt Inc pamsales@usa.messefrankfurt.com www.paaceautomechanika.com PhilAuto AMB EVENTS SDN BHD 17-19 July 2015 SMX Convention Centre, Manila, Phillipines Richard Yew, richard@ambexpo.com http://www.philauto.org/ Auto Expo Myanmar Taiwan External Trade Development Council 22-25 July 2015 Myanmar Event Park, Yangon Taipei World Trade Center Co myanmarfairs@taitra.org.tw https://www.auto-myanmar.com/# MIMS Automechanika Messe Frankfurt RUS 24-27, Aug, 2015 IEC Expocentre Krasnaya Presnya, Moscow, Russia Alexey Nikulin alexey.nikulin@russia.messefrankfurt.com http://automechanika-moscow-ru.messefrankfurt.com International Powertrains, Fuels & Lubricants Meeting Societ of Automotive Engineers 1-4, Sep 2015 Kyoto TERRSA, Japan F&L Conference Organizer Office-in-Charge 2015pfl@jsae.or.jp, http://http://pfl2015.jp/ New Energy Vehicle Forum Societ of Automotive Engineers 3-4 Sep, 2015 Crowne Plaza Shanghai Anting Go, Shanghai, China Sherry McCaskey kramer@sae.org http://www.sae.org/events/nev/ Automotive Testing Expo UKIP Media & Events Ltd 15-17 Sep 2015 Shanghai Everbrite Convention & Exhibition Centre, Shanghai, China Renata Lengui, renata.lengui@ukipme.com http://www.testing-expo.com/china/english/ On-Board Diagnostics Symposium Societ of Automotive Engineers 15-17 Sep, 2015 Indianapolis Marriott Downtown, Indiana, USA Darlene Waychoff, darway@sae.org http://www.sae.org/events/obd/
Advertiser’s Index North American International Powertrain Conference Societ of Automotive Engineers 16-18 Sep, 2015 Westin Chicago River North Hotel, Chicago, USA Brandie Schandelmeier brandie@sae.org http://www.sae.org/events/naipc/
A AL Dobowi
Back Cover
AL Saeedi
26
ATRC 2015
87
Autograde Industries LLC
49
Automotive Engineering Show
97
Gasoline Compression Ignition Engine Symposium Societ of Automotive Engineers 17-18 Sep, 2015 Grand Hotel Quisisana, Capri, Italy Sherry McCaskey, kramer@sae.org http://www.sae.org/events/gcie/
Auto Parts Asia
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AeroTech Congress & Exhibition Societ of Automotive Engineers 22-24 Sep, 2015 Washington State Convention Center, Seatle, USA Darlene Waychoff, darway@sae.org http://www.sae.org/events/atc/
Continental Automotive India Pvt.Ltd. 5
Thermal Management System Symposium Societ of Automotive Engineers 29 Sep-1 Oct, 2015 Troy Marriott, Troy, Michigan, USA Melissa Jena, mjena@sae.org www.sae.org/events/tmss/
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Brake Colloquium & Exhibition - 33rd Annual Societ of Automotive Engineers 4-7 Oct, 2015 Charleston Area Convention Center, Charleston, South Carolina, USA Melissa Jena, mjena@sae.org https://www.sae.org/events/bce/
B Bainite Machines
43
BKT Tires
8
C CURC
27
E Elgi Rubber Company Limited
18
Elofic Industries Ltd.
60
Fiat India
4
FIEM Industries Ltd.
37
G Gold Seal Normal position
7
GRTE
42
I India Rubber Expo 2017
88
IP Rings
36
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Johannesburg International Motor Show SA Shows Messe Frankfurt 14-25, Oct, 2015 Johannesburg Expo Centre, Cnr, Rand Show and Nasrec roads, Johannesburg, SA SA Shows Messe Frankfurt jms@sashows.com, www.jhbmotorshow.co.za
Kloeckner Desma Machinery Pvt.Ltd. 1
Automotive Testing Expo North America 2015 UKIP Media & Events Ltd 20-22 Oct 2015 Suburban Collection Showplace, Novi, Michigan, USA Renata Lengui, renata.lengui@ukipme.com http://www.testing-expo.com/usa/
Malcorp
Transmission & Driveline Technologies Symposium Societ of Automotive Engineers 27-28 Oct, 2015 The Inn at Saint John’s, Plymouth, Michigan, USA Sherry McCaskey, kramer@sae.org http://www.sae.org/events/ctf/
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Kwik Patch
30
L Latin American AutoParts
23
M 15
Messee Frankfurt
Back Inner Cover
Messee Frankfurt
Front Inner Cover
O Omron Automation
22
Rane Group
11
Renault – Lodgy
6
Roots Industries
19
Rubber Asia
72
SEMA Show SEMA Show 3-6 Nov 2015 The Las Vegas Convention Center, Las Vegas, USA SEMA Show sales@sema.org http://www.semashow.com/
Rubber World Expo
67
Active Safety Systems Symposium Societ of Automotive Engineers 4-5 Nov, 2015 Plymouth, Michigan, USA Marc LeDuc, mleduc@sae.org http://www.sae.org/events/cass/
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T Titan Company
10
T S Testing Services
14
TVS Tyres
31
Velox Tyres Pvt Ltd
77
Z Zenith Rubber
61
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AUTO LaUGH
Practical People John S Powath He lives out of a suitcase. He keeps pace with the growing global footprint of Asian Business Media publications. John has a sense of humour whether engaging in business in Kuala Lumpur or Shanghai, Panama City or Akron. His anecdotal comments keep readers and executives in good humour
I
believe we Indians are very good at math. We are masters of tables and, therefore, even in the absence of calculators, we remain faster and quicker than the fastest in the world. There is another side to it. To get to our destination, we do not hesitate to do all kinds of things. We cross the road disregarding the fast moving traffic or the zebra lines. It reflects our culture of being practical. We are pragmatists to the core. I used to live in Calcutta, now Kolkata. It was during the early 70s. It used to be a great place in all respects. The people were practical and used to get things done even in the most adverse circumstances.
a replacement anywhere. So, he directed his driver to go to the ‘Chor Bazaar’ in search of a replacement. After many days of search, the driver could not get one. The boss got angry and he himself went to the Chor Bazaar. He parked the car in the crowded place, and approached one of the main shops and asked for the hubcap. Being not very used to such cars, the shopkeeper asked his assistant to check out the car to know the exact type needed for the replacement. The assistant came back and described the type to the owner. The shopkeeper then told the car owner that it was very, very difficult to get such
There used to be a place known as ‘Chor Bazaar ‘. It literarily means a market place where all sorts of stolen goods are sold. I wonder whether it still exists. These are sold in broad daylight. The long hand of law never reaches the buyers and sellers there! At that time, India had only two ‘ luxury cars ‘ – Ambassador and Fiat. There was a waiting time of 15 to 20 years to get a car! Wealthy people used to book cars when a daughter was born so that when she was married away, a car could be gifted to the boy’s side as part of the dowry! Well, those were the days. However, most of the senior expats used to have very expensive and luxurious imported cars. The main problem was to get auto parts when accidents or thefts took place. It happened to one such expat friend. His car tyre’s hubcap was stolen. And being much attached to his dear vehicle, he used to take care of and love it more than his wife. The loss disturbed him a lot and he could not get
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auto parts but if given 15 minutes, he would try to get one. The expat was very happy. After a nail-biting waiting of 20 minutes, the expat boss got the hubcap. Just imagine his happiness. But he was also angry: it was towards his driver for failing to get one earlier. The boss had the hubcap fitted and in a rage scolded the driver who was waiting in front of the office for his ‘dereliction’ of duty.
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