PT Pricol Surya Transforms To Become Engineering Partner For OEMs
RNI No. MAHENG13758
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Vol.No.1 Issue No.4 September 2015 | US$ 20 `200
In
AUTO PARTS ASIA | SEPTEMBER 2015
Promote R&D To
RNI No. MAHENG13758
IMI Sets Skill Training Standards Globally, Walks Ahead of Megatrends
OMRON Offers Automation, Sensing, Control Solutions To Automotive Industry
Vol No 1 | Issue No 4 | September 2015
ISSUE
IN THIS
34
COVER STORY
PROMOTE R&D TO ‘CREATE IN INDIA’
10
14
MARUTI S-CROSS GETS POSITIVE MARKET RESPONSE, MORE MODELS IN PIPELINE
ZF GROUP TO INCREASE SOURCING FROM INDIA
LAUNCHES
CORPORATE
5 EDITORIAL ‘STOP THE CRASH’
6 IMPRESSION READERS’ LETTERS
7 TRAILBLAZING TRENDS BY T MURRALI
8 PEOPLE
-IIT BOMBAY HONOURS ANAND MAHINDRA -LEA IS PRESIDENT OF COPPER ASSOCIATION
12 CORPORATE
-PT PRICOL SURYA TRANSFORMS TO BECOME ENGINEERING PARTNER FOR OEMs -ZF GROUP TO INCREASE SOURCING FROM INDIA XYLINX
28 SAFETY
BOSCH SAFETY SYSTEMS TO PREVENT ROAD ACCIDENTS
56 INSIGHTS
-INVEST IN EMPLOYEE SKILL DEVELOPMENT -HYDROGEN-POWERED SELF-DRIVEN VEHICLES ON ANVIL
22
47
54
IMI SETS SKILL TRAINING STANDARDS GLOBALLY, WALKS AHEAD OF MEGATRENDS
MORE PARTICIPANTS EXPECTED AT AUTOMECHANIKA SHANGHAI
MAKE IN INDIA WILL MAKE IT HAPPEN
INTERVIEW
PREVIEW
PRESPECTIVE
FEATURES
67 GLEANINGS – INDIA
ROYAL ENFIELD ARM TO SELL BULLET IN NORTH AMERICA
78 CALENDAR OF EVENTS 80 AUTO LAUGH WORDS OF WISDOM
61
FOCUS
68 GLEANINGS INTERNATIONAL NISSAN PEDESTRIAN ALERT SYSTEM FOR eVADER 1915 FORD MODEL T MAKES CENTENARY TRIP
BENECKE-KALIKO MAKES PLUSH, COSY, ECO-FRIENDLY SURFACE MATERIALS FOR VEHICLE INTERIORS
LEAR ACQUIRES IP FROM AUTONET MOBILE ALISE PROJECT FOR LITHIUM SULPHUR BATTERY HENNIGES AUTO TO SET UP NEW PLANT IN MEXICO, FACILITIES IN BEIJING, MUNICH MATE EXPANDS PRESS BRAKE TOOLING LINE
65
BRAND TRENDS
CONTINENTAL JOINS GLOBAL NCAP FOR ‘STOP THE CRASH’ CAMPAIGN PROTERRA NAMED TO INC. 500 LIST KATZKIN LEATHER TO SELL GENTHERM SYSTEMS
-DESMA CELEBRATES 50 YEARS OF SHAPING IDEAS FOR FUTURE
KONGSBERG AUTOMOTIVE WINS SEAT COMFORT BUSINESS FOR PREMIUM VEHICLE
-IP RINGS WEARS INNOVATION HAT
EUROPCAR ADDS ABARTH 500 TO FLEET ANSYS OFFERS SIMULATION SOFTWARE TO STUDENTS
SPECIAL SPECIALREPORT REPORTSPECIAL REPORT SPECIAL REPORT
48
OMRON OFFERS AUTOMATION, SENSING, CONTROL SOLUTIONS TO AUTOMOTIVE INDUSTRY
B
y the time you complete reading this column, at least three people would have died in road accidents in India. Every minute the country is losing one precious human life. The rate of fatality is increasing year after year. The root cause of these accidents is negligence – on the part of the driver, pedestrian, industry and government. The mandatory speed limits for vehicles are neither maintained nor enforced. With automotive engines becoming more efficient and powerful, it is not enough to fit mandatorily Anti-lock Braking System (ABS) in all the vehicles. The law has to go beyond ABS and insist on more efficient and effective systems like Electronic Stability Control (ESC) and similar others. There are cost implications, and a way should be found to make them available, affordable and operational. The Global New Car Assessment Programme (NCAP) ‘Stop the Crash’ campaign will be officially launched on November 18, 2015 to coincide with the 2nd Global High-Level conference on road safety in Brazil. The motto of this meeting of world political leaders, fleet managers and the media representatives is ‘Time for Results’. In India also it is time for results to stop crash and prevent road accidents. The present Union Government has been going all out on the Make in India campaign. The corporate world also is trying to fall in line. Manufacturing for the domestic and export markets has been the buzz word ever since Independence. The focus on export manufacturing got a big thrust after liberalisation of economy and efforts to attract on foreign investment. The ‘Making’, the new word for manufacturing, to be sustainable and viable in the long-run, the government and industry should invest heavily on Research and Development, and innovation. The Cover Story of this issue: Promote R&D To ‘Create In India’, talks about this imperative and present the evolution of the Indian automotive industry which could be a model for the Make in India campaign. The automotive industry’s thirst for knowledge soars in September as SIAM and ACMA will have their Annual Conventions and National Conferences. The deliberations will set the tone for the industry’s growth in the coming years. It will be inspiring to be among the who’s who of the automotive industry. Wish you Happy Reading.
EDITO R IAL
‘Stop The Crash’
Kurian Abraham Editor-in-Chief 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
September 2015 | Vol. 1 | Issue No. 4 Subscription rates 12 issues: Rs. 2,100/24 issues: Rs. 4,000/Single copy: Rs. 200/US$20 Overseas: 12 issues: US$200 24 issues: US$400 Printed at Five Star Offset Printers, Building No.1/151, A.B & C, Nettoor, Maradu Municipality, Ernakulam District, Kerala State Published from: 20th Vaikunth Apartment, Mount Mary Road, Bandra (W), Mumbai 400 050. Edited by Kurian Abraham Editor-in-Charge: Murrali Thalor Printed, Published and Owned by Antony Scaria Powath, 19 Vaikunth Apartment, Mount Mary Road, Bandra (West), Mumbai 400 050
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), Beijing, Tel +86-13911580967, +86-10-5377 9793, Fax: +86-10-5377 9608, E-mail: liut@ chrubber.com, expo@chrubber.com | South America: Ms. Carina Bini Fernandes, Atman Filmes e Criacoes, SCLN 215, Bloco B, Sala 114, Asa Norte – Brasilia – DF, Brazil, CEP 70874–520, Tel: +55 61 3033 8007, +55 6181497800 (Brasil), +91 9895555281 (India), E mail: carina.bini@gmail.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 | SEPTEMBER 2015 | 5
IMPRESSIONS
We Welcome Your Comments
W
e will bring to you every month AutoParts Asia magazine with the latest news and trends in Indian, Asian and global automotive industry. We present them in the way we think is the best. But you may think differently. Your different perspective may be a stepping stone to our ambitious target of achieving superior quality in content and style of presentation.
We want to make every edition better than the previous one. You can help us in this task by writing to us your evaluation, appreciation, comments, and suggestions. Our e-mail address is: tm@abm.net.in You may visit www.autopartsasia.in for instant updates on the automotive industry developments.
READERS’ LETTERS
Wide Variety
I
did receive the copies of your new Auto Parts Asia magazine. I’m thoroughly impressed. You seem to have captured and covered a wide variety of interesting new developments in the auto industry. You have also addressed a very serious problem which continues to nag the industry in several parts of the world, the manufacture of counterfeit parts. Others seem to ignore the problem in the hope that it will go away. It’s no secret that counterfeiting will
continue to plague the industry until such time that it is faced head-on and corrected. You have my congratulations on your position on the matter and your willingness to speak out. All too often I find the movement of top executives within the supplier community ignored; your attention to this area is refreshing and appreciated. Ronald L Theis, Detroit.
Well Brought Out
I
have glanced through the first three issues of your new magazine AutoParts Asia. While the layout and design are good I feel the font size is slightly larger. Also, I see more advertisements
6 | AutoPartsAsia | SEPTEMBER 2015
on the right hand side. There could be more reading material on the right hand side. The magazine is good; brought out well. Harish Kamat, Bangalore.
TRAILBLAZING TRENDS By T Murrali
All Eyes On Frankfurt Motor Show
F
rom the second half of August the automotive industry has been going slow- hold your breath, not in sales but in sharing information on their new initiatives, products, services etc. Well, why is this lull? Almost all the global players will be participating in the 66th International Motor Show (IAA) Cars in Frankfurt Main and they reserve everything for the moment. The participants at the event will showcase the latest trends and technological highlights of the automotive year 2015. Around 1,000 participants from over 40 countries will display their products at the world’s most important mobility trade show. Open between September 17 and 27 the visitors will be flooded with innovations, including numerous world premieres. A few companies announce their participation with snippets on their exhibits. The press days of the event with slogan ‘Mobility Connects’ are on 15 and 16 and the first day will be seen the global automotive media bombarding with news on the technologies, trends and new vehicles. Looking back at August, the significant among the inventions is the knee airbag. Let me focus on a few trailblazing events. Firstly, the innovative knee airbag. Ford Mustang is the first vehicle to be equipped with a new type of knee airbag that is integrated within the lid of the glove box, instead of the instrument panel. Weighing 65 percent less than a conventional knee airbag, the glove box airbag offers comparable protection. It improves fuel efficiency and the innovation has so far been granted 23 patents. Yet another interesting aspect of the automotive world is the arrival of ‘the future’ from Toyota. Yes, the future – in Japanese parlance Mirai, the world’s first mass produced fuel cell sedan that is set to create history from this month as the delivery of the first car to customers is waiting to happen any moment. It is set to trail blaze the next step in clean mobility, using hydrogen as fuel and emitting nothing but water vapour. It was first displayed in Europe at the Geneva Motor Show held last year March. Though the car has been on sales since last December, its
arrival in Europe is significant as it is expected to set the tone for the truly green car to make inroads. The first commercially-produced hybrid car - Prius - which in Japanese means ‘to go before’ was perhaps a precursor to a new era of electrified mobility, when launched in 2000. Mirai arouses similar expectations as it uses the pioneering Toyota Fuel Cell System (TFCS). Toyota announced that it has now sold over eight million hybrid vehicles globally. Other noted tech-intensive product is the new premium diesel piston aluminium alloy called DuraForm-G91, developed by Federal Mogul Powertrain. Interestingly, in the benchmarking tests, the new alloy offered component life by three to five folds of established cast materials in modern, highly loaded, diesel engines. From what happens in the dark chamber (engine cylinder) let us move on to see some light. Yes, the new L4060 LED low beam module developed by Hella for low beam or as low beam with daytime running and position light has lit some bright light on car designers’ drawing board. As the three functions are combined, the packaging is economical and the designers will be delighted as the space is premium inside the bonnet. In India the gearless scooter Honda Activa that re-kindled the scooter market in 2001 has crossed a significant milestone recently. It has become the first scooter in the country to achieve sales of 10 million unit. Ever since the launch in 2001 the scooter, manufactured by Honda Motorcycle & Scooter India has been creating records. Defying the belief around the beginning of this millennium that scooters as a concept was dying in India, Activa grew consistently year on year. From 55,000 units in the first year it became the market leader in just 3 years. Since then, it has grown to sell over 2.1 million units in 2014-15 holding 59 percent market share in the scooter segment. See you next month with trail blazing events. Till then, Good Bye. AutoPartsAsia | SEPTEMBER 2015 | 7
PEOPLE
IIT Bombay Honours Anand Mahindra APA Bureau
A
nand Mahindra, Chairman of the Mahindra Group, received an honorary doctorate at the 53rd Convocation of IIT Bombay. He was conferred with the Degree of Doctor of Science (Honoris Causa) for his extraordinary commitment in furthering the cause and growth of the automobile industry, and for his significant contribution to the social development of India. Mahindra, after receiving the award, told the graduating students that, “Everyone says that ‘Jugaad’(thinking cheap) is India’s biggest contribution to the world. What I want from all of you is to work towards moving from ‘Jugaad’ to ‘Jhakaas’(thinking differently). ‘Jhakaas’ is about disruption and sustained disruption requires an educational culture where questioning is encouraged and failure is embraced. I would argue that one of the ‘I’s in IIT stands for
imagination. This is an educational culture where your faculty has created an environment that encourages you to think and provides opportunities to take the creative leaps of faith. So, I urge you all to go out there and focus on this ‘I’. This will lead us to not only ‘Make in India’ but also ‘Imagine in India.” “The Doctor of Science (Honoris Causa) is the highest honour bestowed by IIT Bombay. Over the past two decades, Mahindra has contributed immeasurably to the development of India’s indigenous automotive industry and the success of vehicles like the Scorpio and the XUV500 is testimony to this contribution,” Professor Devang V Khakhar, Director, IIT Bombay, said. Kailash Satyarthi, Nobel Peace Prize Laureate, was the Chief Guest for the occasion and he delivered the Convocation Address.
Lea Is President Of Copper Association APA Bureau
A
nthony Lea is the new President of the International Copper Association (ICA). He was the Senior Vice President, Marketing and Strategic Planning, of ICA. As President Lea holds the senior management responsibility for all aspects of the organisation, and overseeing the global operations of the extended Copper Alliance across six continents. He will continue the process of organisational, strategic and programme improvement initiated by the ICA members in 2014. The previous position of Vice President, Marketing and Strategic Planning, which he held for 12 years, provided Lea with a unique perspective on the challenges faced in the end-use markets for copper and a wealth of experience in conducting programmes to develop and defend copper use. Lea holds an MBA from Warwick Business School and a 8 | AutoPartsAsia | SEPTEMBER 2015
Bachelor of Science in Physics from Imperial College of Science and Technology, both in the UK. “I am confident that under Tony’s leadership ICA will continue to provide great value to the copper industry by promoting and defending copper markets and developing a positive image for copper among its wide range of stakeholder communities,” Jean-Sebastien Jacques, Chairman of the ICA Board of Directors, said. “On behalf of the ICA Board, I am pleased to welcome Tony into his new position, and I am confident he will lead the ICA as a strong advocate for the copper industry.” ICA leads the world’s copper industry on the issues critical to securing copper’s future growth. ICA’s members represent a majority of global copper production, and include many of the largest copper and copper alloy fabricators.
LAUNCHES
Maruti S-Cross Gets Positive Market Response, More Models In Pipeline
APA Bureau
T
he premium cross over, S-Cross from the car market leader, Maruti Suzuki India Limited, is getting positive market response, company sources have said. The recently launched S-Cross, available in two diesel engines - DDiS 200 and DDiS 320, is priced between Rs 8.34 lakh and Rs 11.99 lakh for different models. Maruti is reported to be having more models of S-Cross in the pipeline. Developed at a cost of Rs 600 crore, S- Cross is Maruti Suzuki’s first premium cross-over, a combination of the comforts of a sedan and the practicality of a Sports Utility Vehicle (SUV). The car is sold from the company’s newly-launched Nexa showrooms. There are 35 operational Nexa stores now. Maruti would open more such stores across the country. The bold cross-over looks, premium interiors and rich features enable the S-Cross to stand out. The
10 | AutoPartsAsia | SEPTEMBER 2015
massive torque, power and superior ride and handling is bound to delight customers. By offering power and performance, and the comfort and refinement of a sedan, S-Cross has created the new category of premium cross-over in India. According to a company statement, there is a segment of customers in India who want power and performance in their vehicle, but also the comfort and refinement of a sedan. S-Cross aims at this segment. The interiors are plush, upmarket and spacious with high quality fit and finish and top notch features. S-Cross comes with unique cross-over poise and design. Its design embodies the three key themes of emotion, quality and aerodynamics. A characteristic and bold crossover shape, dynamic and strong character lines, emotionally appealing styling and several sophisticated touches, all combine to create a highly
distinctive look for the S-Cross. The distinctive Suzuki grille with the ‘S’ emblem, and with HID (High Intensity Discharge) projector headlamps lend a distinctive crossover flavour to the design. The side body side cladding and skid plate garnishes at the front side and the rear, raised bonnet, premium integrated roof rails accentuate the cross-over looks of the S-Cross. The rear is as impressive as the front with split type tail-lamps and the upright stance. The rich, premium and spacious cabin makes the S-Cross different. The plush dark interior colour scheme, design language expressed through flowing surfaces and liberal use of high quality surface finishes like silver ornamentation add to the overall classy fit and finish of the cabin. The equipment list in the interiors comprising multi information display, twin dial instrument cluster
features blue lighting, while the rest of the controls sport a soothing amber back-lighting. The navigation system, smart play infotainment system, steering mounted controls and abundant space for all passengers make travelling in the S-Cross a delight. Above all, several acoustic insulations and absorption materials are effectively positioned around the cabin and engine room to keep it quiet. S-Cross is built to be zippy on city roads and comfortable on varied terrains. The high performance suspension, enhanced handling cornering performance and stability, together make S-Cross a sheer thrill to drive. Safety is first at S-Cross with its Hi-Tensile Steel Body, all wheel disc brakes with ABS, Front seat pretensioner and force limiter. Dual air bags are standard across all variants. From accident avoidance to occupant protection, the S-Cross leads the way.
CORPORATE
PT Pricol Surya Transforms To Become Engineering Partner For OEMs By T Murrali
I
ndonesia-based PT Pricol Surya (PTPS), the whollyowned subsidiary of the Coimbatore-headquartered Pricol Limited, is making its foray into Powertrain Products. It is in talks with OEMs and fleet operators for products supply. PTPS will be supplying shortly a new oil pump to Suzuki. Pricol classifies its products under four sections: Driver Information System Products (comprising of instrument clusters, round gauges, information display and infotainment); Powertrain Products (oil/water pumps, valve regulators and hydraulic systems); Sensors, Actuators & Switches (temperature /pressure /level / speed switches, sockets and actuators) and Fleet Management Products (road speed limiters, vehicle tracking systems, and centralised lubrication system and fare meters). Incorporated in 2005 PTPS commenced commercial production from April 2007, manufacturing components under Driver Information System Products. Located in Karawang, about 56 km East of Jakarta, the company has been making mechanical instrument clusters, electronic instrument clusters and few products under Sensors, Actuators & Switches – like fuel level sensors, hub driver and powertrain products. In addition to Indonesia the company caters to markets such as Thailand, Vietnam, Cambodia and Philippines. It 12 | AutoPartsAsia | SEPTEMBER 2015
supplies to Honda, Kawasaki, Suzuki, Tata Motors (Thailand), Mitsubishi and Yamaha. The company supplies mechanical instrument cluster to Suzuki, Kawasaki and Honda while it supplies electronic instrument cluster to Tata Xenon, Mitsubishi and Yamaha. It also supplies fuel level sensors to Yamaha and fuel sender to both Suzuki and Yamaha. PTPS originally depended on its headquarters for new product development. It began developing on its own since 2010 with some support from India. Off late it has been developing new products even from the concept stage. The President Director of PTPS, Arvind Soni, told AutoParts Asia that “Pricol has been supplying oil pumps to almost all the twowheeler companies in India. The Powertrain Products will bring growth to us as we have proven establishments in India.
Arvind Soni
When we were discussing with Suzuki to supply pumps, it was easier for us to replicate. During the first phase of supply the product will be coming from our Indian plants. After about six months, it will be manufactured, tested and supplied by PTPS”. PTPS wants to raise its CAGR from the present 30 percent to above 40 percent in the coming years. This is possible because the company is focussing on untapped markets. “If we have to grow then we need to look for the untapped market. For us, four-wheeler is an untapped market,” he said.
PT Pricol Surya has assembly lines for electronic / mechanical assembly, fuel level sensors and printing.
ing.
that will help improve efficiency at competitive cost and value addition and value engineering. Pricol Technology, dealing with software and hardware, is supporting PTPS in this journey, Soni said.
Centralised Lubrication System
Pricol is a technology driven company and the Indonesian subsidiary also moves in the same direction. Therefore, PTPS began evolving strategies to get aligned with the parent company, which will enable it to meet customers’ expectations and grow. From the twowheeler business PTPS forayed
PTPS is expanding its business under Sensors, Actuators & Switches division. It has made a commercial agreement with Honda in Thailand to supply temperature sensors after the successful completion of testing. It will supply oil pumps for Honda. It is in discussion with Mitsubishi for supplies its new model. PTPS is in touch with fleet operators to supply Fare Meter with smart features including printers, he added.
The Plant
into four-wheeler OEMs by supplying speedometers to Mitsubishi. This gave it the confidence to make speedometers to commercial vehicle OEMs. “These initiatives show that we can become an engineering partner to four-wheeler OEMs and also a solution provider for the non-automotive companies� he said. The company has been in talks with Toyota and Volkswagen exploring opportunities. PTPS over the years has developed the capability to offer its customers several solutions as a package
The factory of PTPS has dedicated assembly lines for electronic assembly, mechanical assembly, fuel level sensors and printing (screens for the instrument clusters). Besides, it has created facilities to test several parameters to ensure product reliability. These include vibration, salt spray, UV, temperature / humidity, water spray, rotating, pull load, dry heating, dust chamber and thermal shock. The company has 350 employees. About 60 percent are women. The company has an installed capacity of 219,000 units of mechanical instrument clusters, 48,000 units of electronic instrument clusters and fuel level senders each, per month. While three fourths of the capacity of the mechanical instrument clusters is utilised, the other two products hover around 50 percent.
India Operations Pricol Limited has seven manufacturing plants in India spread across Coimbatore, Pune, Gurgaon, Uttarakhand, Pantnagar, and one each
in Indonesia and Brazil. In addition, it has international offices in five locations Detroit in the US, Cologne in Germany, Shinagawa in Japan, Bangkok in Thailand and Singapore. It has plans to set up such offices in Vietnam and Italy. Incorporated in 1974 the company has more than 50 product offerings with about 2,000 product variants. It has to its credit 35 Patents and nine design registrations.
The company spends around 3.5 percent of its turnover on research and development. The mother plant in Coimbatore makes instrument clusters, sensors and switches and the other plant in the same city makes oil / water pumps, chin tensioner, auto fuel cock, auto decompression unit, and sintered components. The instrument clusters are made in collaboration with Denso. In Pune the company makes mechanical and electronic instrument cluster and body control modules in collaboration with Johnson Controls. It also makes oil pumps, speed sensors and fuel level sensors. The plant in Manesar makes instrument clusters, sensors and switches, auto fuel cock and chain tensioners. The plant in Pantnagar makes instrument clusters, sensors, pumps, and vehicle security systems. As a group Pricol caters to a wide range of OEMs in all the segments of mobility - two wheelers, three wheelers, passenger cars, commercial vehicles, tractors, off-road vehicles, railways - and to industrial applications. AutoPartsAsia | SEPTEMBER 2015 | 13
CORPORATE
ZF Group To Increase Sourcing From
India By Sharad Matade
Z
F has been able to scale up considerably its strength in India. With the push given to ‘Make in India’ by the government, ZF aims to manufacture quality products locally. The Indian
component suppliers have deep technological capabilities and ZF has been taking advantage of this strength to source superior quality products for its global operations.
is in touch with various stakeholders to assess the potential for exports. “A double digit percentage growth should not be very difficult to achieve, he said.
“Over the years, the Indian supplier base has proven our judgment right. Owing to the positive experience regarding quality, turnaround time, reliability and cost competitiveness we are now considering to increase our sourcing from India. ZF strives to achieve value for money through locally-sourced products and not just low-cost products,” Suresh K V, the recently-appointed country head of ZF India, told AutoParts Asia.
“India’s contribution to ZF Group’s overall business has been growing at a decent pace. The kind of investment we are doing in India only goes to show how India is a strategic and important market for the ZF Group. We have considerably scaled up our strength in India and are ready to take up new challenges in this growing region,” Suresh said.
ZF Friedrichshafen AG, also known as ZF Group, and commonly abbreviated to ZF, is a global leader in driveline and chassis technology as well as active and passive safety technology. The company, headquartered in Friedrichshafen, Germany, is represented at about 230 locations in 40 countries. Recently it acquired TRW Automotive which has considerable presence in India. ZF India’s major exports are in the areas of castings and forgings, mostly to the US and Europe. With the newly-created purchasing organisation, ZF Services, the company Suresh KV
14 | AutoPartsAsia | SEPTEMBER 2015
Localisation ZF has been in India for over 30 years and its operations are spread across plants in Pune, Pantnagar, Gurgaon, Chennai, Coimbatore and Madurai. ZF recently inaugurated a state-of-the-art manufacturing plant in Chakan, Pune with an investment of nearly €20 million (Rs. 150 crore). “The new facility on 21 acres reinforces ZF’s role as a global player and its commitment to expansion in a growth region like India. We will also utilise this deepened tie with India for sourcing quality products for our global product portfolio. We are working towards localisation. We have considerably scaled up our strength in India and are ready to take up new challenges”. In accordance with its ‘local-
CORPORATE value will extend globally and also to India. Though not very much impacting the Indian market, the acquisition of Bosch gear box business will also help ZF gain market share in the wind energy business,” he said.
Active Kinematics Control
for-local’ concept, ZF believes in the concept of ‘For the region, from the region’. The establishment of an assembly plant for front and rear suspension modules for passenger vehicles for a luxury car maker in Oragadam, on the outskirts of Chennai, is a recent example. “The plant is a good starting point for further expansion of the business in India – and it is a clear commitment of ZF Group to the Indian market. I am very confident that the
growing Indian automotive and manufacturing sector will provide us further avenues to grow and expand,” Suresh said. India is a lucrative destination for companies to tap growing opportunities. But there are several regulatory hurdles a company must cross to be able to establish a strong foothold, Suresh said. OEMs, mainly international, are increasingly emphasising on localisation of component sourcing and ZF India’s priority has been proximity to their customers 16 | AutoPartsAsia | SEPTEMBER 2015
to fulfil their requirements and cater to their market-specific needs. “ZF’s close proximity to customers on every continent is a key strategic advantage. In India, we have been supporting our global partners to localise,” he said.
Product Offerings Over these years ZF India has been steadily increasing the product offerings both in terms of range within the automotive space and also in other segments like offhighway, marine, wind, railway etc. The combined company, after the acquisition of TRW Automotive, is a house of automotive technologies, ranging from driver assistance and occupant safety systems, to drivelines and transmissions, and braking and steering systems. ”Together, we are in a better position to grow further globally, and to meet the rapidly-rising demand for new technologies that reduce emissions and improve road safety,” Suresh said. “With this acquisition ZF will be able to benefit from major trends in the industry by building on the strengths of both the companies, remaining focused on current and future business needs, and managing the transition with an emphasis on creating value. This same
ZF Services supplies a comprehensive range products and services to the Indian aftermarket in OE quality. They include technical consultation, repair and maintenance, and sales of parts. In the automotive aftermarket segment, the company offers four product brands, SACHS, Lemfoeder, ZF Parts, and ZF Lenksysteme. “We at ZF Services believe that `product is the champion’. With the legacy of 100 years of engineering excellence, ZF products are manufactured to the highest OE quality standards. Our product brands stand for high quality. Our commitment to quality has enabled us to build tremendous trust and reliability for our brand among the customers. ZF Services is expanding its network to reach customers faster,” Suresh said. Being with the company for about eight years gives an edge to Suresh in his new role. He wants to continue the progress the company has made over the years. “Although I have been appointed as ZF country head only recently, I have been associated with the company since a long time. This gives me an advantage, as I am wellversed with the systems and processes, growth strategies, internal operations etc. I’m delighted at the opportunity to build on the progress we have made over the years. I will consistently work towards driving innovation and growth, ensure disciplined execution, and deliver optimum results,” he said. After joining the company in 2007as as General Manager (Operations), Suresh was appointed as the Executive Director of ZF Wind Power Coimbatore Ltd. in 2010 and then country head of ZF India in June, 2015.
AutoPartsAsia | SEPTEMBER 2015 | 17
CORPORATE
Safety Norms, Comfort Needs Boost ADAS By Sharad Matade
S
afety and comfort are no longer restricted to high- end vehicles thanks to tightening safety norms and growing consumer demand for comfort. Electronic is the most transformative component in automotive to meet the standards of safety and comfort. Advanced Driver Assistance Systems (ADAS) are no exception to it, according to experts like Stephan Janouch, Senior Marketing Manager, EMEAI, Automotive Segment, Global Sales and Markets, Xilinx. “ADAS are available in all high-end cars like BMW 7 series and Lexus LS as well as in most (upper) mid-range vehicles like Mercedes C class and Opel Insignia. However, today a lot of ADAS are available as an option in smaller vehicles such as VW Polo. Along with this, Ford F-150, which is a workhorse of the US rather than a luxury vehicle, is also equipped with various ADAS. The growing success of ADAS leads to reduced system costs, making it easier for OEMs to include them in economy vehicles,” Janouch said. Today many small cars are being equipped with driver assistant options 18 | AutoPartsAsia | SEPTEMBER 2015
such as cruise control and parking assist systems among others. The number of small cars equipped with ADAS features on the road is low. But the number of cars in smaller categories equipped with many sophisticated electronics is growing.
Growing Segment The ADAS segment has gone through many changes and grown in leaps. The trend is likely to continue. According to a report published by Research and Markets, ADAS has been one of the fastest-growing segments in the automotive industry and is expected to have a CAGR of 32 percent during 2014-2019. The report also says that in the developed markets around eight percent of new vehicles are equipped with ADAS. It is about two percent in emerging markets. According to Strategy Analytics, electric powertrain (hybrid/electric vehicles) and ADAS are poised to have a distinctive growth in the future automotive business. Its January 2013 report had said that, 25 percent of vehicles will be connected to the internet by 2025, and 25percent of
traffic will be of autonomous vehicles by 2030 worldwide. On the users’ side, ADAS have changed from comfort-based systems to safety- critical applications. The growing norms for safety applications in the vehicles are already driving the ADAS business. “The governments want to reduce road fatalities. Safety norms and regulations are already impacting the ADAS industry. For example, the requirement to have a rear-view camera on new car models in the US,” Janouch said. “Also the NCAP (New Car Assessment Programme) will drive further the equipping of cars with ADAS as it will be impossible to get a full 5-star rating without certain systems like automatic emergency braking.” The complexity in ADAS has also been growing with more advancement in the system. A couple of years ago, the driver awareness system merely flagged a warning to the driver. With driver assistance systems, which are being used in the market today, these systems not only will flag a warning but also will actively influence the car. For
CORPORATE example, driver assistance systems control the steering wheel, keep you in the lane and hit the brake pedal so the car would not hit the obstacle. “We’re already discussing semi-autonomous systems with our customers. Semi-autonomous systems will take over the total control of the car under certain circumstances or a certain period of time, e.g. while being stuck in a traffic jam,” Janouch said
are major challenges in the autonomous driving. V2X can aid advanced driver assistance systems. “V2X is less a technical issue, you need to have certain number of vehicles and infrastructure station equipped with this technology and being able to communicate with each other,” Janouch said.
Xilinx has already featured among the top 10 players of automotive processor and logic suppliers. According to Janouch, “looking into the future with all the consolidation going on in semiconductor industry and our current success in the driver assistance systems, we are confident we can position ourselves at the 8th or 7th rank in near future”.
Automotive Drivers
Xilinx has also set one kind of a record by supplying over98 million units in automotive applications to automotive Tier-1 suppliers with zero recall since 2002. “The company develops and produces highest quality devices which are superior to competing architectures regarding performance, power dissipation and total system cost. By providing the hardware programmable devices to the industry’s leading Tier-1 suppliers, Xilinx enables them to implement the latest driver assistance features using the latest data processing algorithms, thus allowing them to differentiate from their competition,” he said.
The 4th Evolution The fourth evolution in ADAS is autonomous driving systems. In this system, the vehicle will take you to door to door without you having to interact with the car at all. According to Janouch, Xilinx has different device families to target the four applications. As OEMs are emphasising on autonomous driving, challenges are becoming more complex to the company. “It is not enough to provide devices that meet the requirements of future ADAS regarding performance, power, integration, reliability and functional safety. We also need to equip our customers with the right design tools and methodologies to enable them to effectively and efficiently develop their products using Xilinx’ devices,” Janouch said. Xilinx is bringing revolutionary devices to the market through its product offerings: Zynq All Programmable SoCs was the first of its kind combining the processing power of a dual-core ARM Cortex-A9 with the hardware flexibility and performance of Xilinx programmable logic on the same device. “This was the first device allowing to implement a complete ADAS signal chain on a single device. The next generation ZynqUltrascale+ MPSoC will drive this development further providing even more processing power but also delivering a lot of vital features regarding power management, functional safety and security,” he said. Though autonomous driving is likely to be a reality soon, harder challenges are ahead of both OEMs and the governments. Setting up much-needed infrastructure to have vehicle to vehicle communication (V2V), and vehicle to infrastructure (V2I) communication technologies 20 | AutoPartsAsia | SEPTEMBER 2015
Xilinx is a leading provider of all programmable FPGAs, SoCs and 3D ICs. These devices are coupled with a next generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration. The company has supplied more than 5.8 million units in FY15 (in ADAS applications alone) and now is serving more than 16 OEMs, both high-end cars and economic vehicles. Before starting the supply of its products to the automotive industry, Xilinx was supplying its products to the telecom industry. “But we figured out that our devices are a good fit for other markets as well, and automotive was one among those. In automotive we have more than 60 percent share in the segment and shipped over 98 million units from the beginning of our automotive activities. We are looking at the entire automotive market, but we have key applications, where our devices provide a certain advantage to our customers, e.g. in applications like driver assistance system, infotainment and drive information,” he said.
Xilinx is not only adhering to the standard baseline of Automotive Electronics Council’s AEC-Q100 but is raising the testing bars quite above the specified standards. To ensure quality the company puts its products through tough tests. Xilinx, under its “Beyond AEC-Q100” programme, tests its devices for 2000 hours (instead of the mandatory 1000 hours) or until the device fails. A similar methodology is applied to all other tests mandated by the AEC-Q100 qualification. “Exceeding the requirements of the AEC-Q100 helps provide solid safety margins to our customers,” Janouch said.
INTERVIEW
IMI Sets Skill Training Standards Globally,
Walks Ahead of Megatrends
Established in 1920 as the Institute of Motor Traders, the Institute of Motor Industry (IMI) UK, a not-for-profit-company, sets standards for training throughout the automotive sector, especially the aftermarket. It offers 250 qualifications through 700 training providers around the world, promotes automotive job opportunities for the young people, and campaigns for greater recognition of professionals in the motor industry. In an exclusive interview to AutoParts Asia, Herbert Lonsdale, International Business Development Manager, IMI, spoke about the vision and activities of the Institute, the importance of skill development to keep pace with the new technologies and its interest in India. Edited excerpts:By T Murrali
Q
: What is the mission and vision of IMI? Lonsdale: It is in the words IMI, which stands for the Institute of the Motor Industry. Our whole vision is to increase professional standards throughout the automotive industry. We believe that is very important. We want people to have high professional standards, be well-trained and increase their skills in the automotive industry around the world. So that is what we do. Q: How do you propagate it? Lonsdale: We do this in three ways. We are a membership-based professional body. It is based
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IMI Fanshaws
on the idea that there are a number of people around the world who would like to be associated with this kind of automotive community of professionals. This is a very important part of what we do. The second element of what we do is the Sector Skill Council in the UK. We create apprenticeship frame works; develop new training schemes to ensure skilled and well-equipped people are available for the sector, particularly in the aftermarket, to handle the challenges of today. We are very keen to encourage young people to come into the industry. Unfortunately, it is an industry that has a mixed reputation among young people who think it is all about spanners and oil and that kind of stuff. Of course it’s hightech and that’s how we want them to see it. We also want to encourage adult learners to learn more so they too can improve their skills. The third pillar is a very important part of what we do - we are an awarding organisation. We award international qualifications in automotive disciplines and provide other solutions such as skills accreditations and the quality assurance of in-house training programmes. We also encourage employers and training providers, both government and educational institutions, and private providers to train to IMI standards so that the training itself is of the highest possible standard. Q: Do you also develop standards? Lonsdale: Yes, it is. For example, we create National Occupational Standards, specifically for the automotive industry on behalf of the UK Government. Q: Is it HR- related standards that you set, while SAE is into developing technological
standards for lubricants, electric vehicles or any application for that matter? Lonsdale: We are not directly involved in setting actual technical standards. We are very closely involved with most of the technology organisations around the world, both component manufacturers and OEMs. We understand the standards and work very closely with wellknown global standards setting organizations like BSI, Irtec and also in the insurance accident repair business, Thatcham Research and global component manufacturers such as Bosch and other leading companies. We use our relationships and collaborations to develop qualifications and recommend training syllabus that leads to the opportunity for people to reach international benchmarks in those skill areas. Q: How do you provide training to people in the UK and in other countries? Lonsdale: We don’t provide training ourselves, the training we create is provided through 700 IMIapproved centers around the world, including the training academies of global manufactures. We also create a rigorous discipline for the trainers to follow and we regularly assess them to ensure their learners are being taught and tested to the standard required by the industry. Q: Do you also work with SMMT of the UK? Lonsdale: Yes; SMMT, the Society of Motor Manufacturers and Traders, the UK motor industry association, is a very well-known trade organisation with which we work very closely. They are primarily concerned with inside the factory, OEMs manufacturing and component manufacturing. We deal with the aftermarket area. Q: Do you also follow certain megatrends like AutoPartsAsia | SEPTEMBER 2015 | 23
INTERVIEW areas are developed and they reach international standards. Q: How do you see the global automotive industry moving in the next 5 to 10 years? What is your outlook? Lonsdale: I think, overall, the automotive industry is prospering. In some parts of the world we are still recovering from the depression of 2007-08. The automotive industry uniquely is consumerdriven. When economies are doing well and people have more disposable income they will buy more motor cars or the industrial sector will buy more trucks.
IMI’s role is to ensure training and educational aspects fill the skills gap
OEMs and component manufacturers do? Lonsdale: Rather, we set the trends by going ahead of them. I believe we may well be the only organisation in the world that actually has a range of qualifications that meet those criteria. For example, if you take electrically- propelled vehicles like hybrids, we are very strong in that area. Interestingly, the Malaysian Department of Education uses IMI qualifications for hybrid electric vehicles to train their people in their colleges. We stay ahead of trends, we spend a lot of time with research departments and operations too.
Q: Is Growth driven by economy? Lonsdale: Absolutely. The local economies are the primary drivers for automotive growth. If you look at the developing economies, the infrastructure is improving, getting more sophisticated, people are getting more sophisticated. We are seeing a growth in consumer awareness, for example, in hybrid vehicles. In that sense, the aftermarket, in which
We also work very closely with industry, we have a range of steering groups to talk to industry, manufacturers, component manufacturers and other technological leaders in the industry to find out what is happening, how’s it going, and what impact does it have on the market place and the people working there. We use that to give a sense of direction to our qualifications and other solutions. Q: Automotive industry, from being American, European or Japanese, is becoming mainly Asian. What role does IMI play in this transformation? Lonsdale: You have made a good point. Malaysia comes to mind because I was there quite recently. If I recall correctly, the automotive component of their GDP is about 3.5 percent. Their aspiration is to more than treble that number by 2020. Now that’s a big aspiration. There has to be a good deal of growth for the Malaysian government and others in the ASEAN region to be able to develop that kind of automotive or component manufacturing or assembly capability.
we are particularly interested, is also becoming an important part. It’s also interesting to note that in Malaysia there are 33,000 people who work in automotive manufacturing and over 200,000 who work in the aftermarket area. If you’re a government, you are looking at opportunity of employment for your people. The automotive industry provides that opportunity provided the people themselves have the right skills with the right opportunity for training and education to develop their own skills to be more employable. Therefore pay more tax, to help the nation.
IMI’s role, as always, is to make sure the training and educational aspects fill the skills gap. In the developing countries there is a skills gap, there is a knowledge deficit and sometimes there could also be an ambiguity in the quality of the training that is provided. IMI’s role is to ensure those three
Q: Are there impediments also? Lonsdale: There is a major problem with skills development in the emerging economies particularly in the automotive after-market. Even the larger manufacturers often overlook the technical skills required to service and maintain
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new vehicles. This causes a problem for the customer and it holds back productivity for business. In the UK the government paid IMI to produce research to prove how effectively skills training can increase productivity. We proved that business can benefit from up to a 300 percent return on investment from a well-targeted training programme. The Return on Investment study is available for everyone to see on our website www. theimi.org.uk. Q: When you talk about hybrids or the electric vehicles, it’s about pushing the emissions from one place to the other. So what is the role of IMI in propagating sustainable mobility? Lonsdale: We want to encourage, of course, the development of less pollution and fewer emissions and in electric-powered vehicles we are encouraging governments and others to move down that route. IMI is a professional body, but obviously we don’t set the standards by which governments decide what they are going to do. We encourage legislation; we
the governments themselves have to take that initiative; we support it wherever we can. Q: Do you also support the initiatives to manage the energy challenges? Lonsdale: We want to ensure that we support those issues. For instance, in South Africa we spoke to a number of government colleges. Resources are a problem there and elsewhere to deliver the kind of training and the right resource for students and learners. IMI intends to promote that at both the government and individual employer levels so that we make our contribution to those aspects of a greener planet. Q: A step in this direction for sustainable mobility is connected cars. What is your view on this, the connected industry? Lonsdale: In our industry we would never try to put a stop to that kind of advance of technology, like telematics. The challenge is the technology and skills needed to manage and service those vehicles. Q: Too much of electronics brings too many complications. There are new challenges in the aftermarket with the increasing application of electronics. What is your view on this? Lonsdale: That’s why IMI is very active in ensuring that the skills gaps are filled to ensure the advantages of connected vehicles are realised. Our view is always about education, it’s always about skills. It is always about ensuring that from the point of view IMI, a professional awarding body, there are qualifications and missions to meet those challenges.
encourage governments to think in those terms to ensure their emission regulations meet required standards. Q: Emission regulation is a global necessity. But there is resistance from emerging nations as they are in the take-off stage and are struggling to catch up with the markets that have gone to the next level. How do you view this anomaly and disparity? Lonsdale: Our belief is that it is all based on educational understanding. The developing world quite properly wants to ensure they have a large number of people in gainful employment with the automotive industry. Hence they may have a different view on matured markets. Our view is that education, training and development is the key and the fundamental platform to change people’s opinion. In the end, of course,
Q: In the connected cars the technology is deskilling even the drivers and there are a lot of distractions for them. Technology is gradually taking away the traditional involvement of one who is behind the wheel. Is this the right direction? Lonsdale: I think that’s just the way it’s going. Again it comes back to skilled people working in that marketplace because they need to understand science, technology and how to use computers; they need to be diagnostic technicians. In a sense, the new technology is providing new opportunities for young and experienced people in the industry to upgrade their capabilities, and that is what IMI is encouraging. I agree it’s all a bit scary, the autonomous cars, which we are piloting in the UK. There are regulations in the UK that you cannot use mobile phones while driving a car and some companies even go further that you can’t use hands free in the car because your mind’s eye is elsewhere. So there will be more challenges in the future with more technology to distract the driver. It will be down to regulations to determine what is acceptable and what is safe. Driverless cars will change the game completely. AutoPartsAsia | SEPTEMBER 2015 | 25
INTERVIEW Q: India has transformed from a cheaper component manufacturer to a technologyintensive and cost competitive manufacturing base. Companies like Nissan, Hyundai, Suzuki and Ford has made India a manufacturing hub for different markets. What are your observations on this transformation? Lonsdale: From our perspective of the aftermarket, rather than manufacturing, it is clear that India is doing very well with regard to quality and development. It is clear that the quality component of the Indian aftermarket is changing rapidly, when it comes to Indian technology. A really good example is the Jaguar Land Rover phase because that has transformed the traditional British car manufacturer into a world beating technology. India is an important
particularly those that emanate from the UK. So we are very keen to see progress in India for us. Q: When can we see something happening? Lonsdale: As soon as possible. Q: The ‘skills and training’ environment in India is no better than that in the Middle East. The indigenous learning infrastructure in India is also not equal to the speed of growth in both light and heavy vehicles. What prevents you from getting into India in a big way? Lonsdale: Nothing really prevents us; it’s about timescales and opportunity. We are very actively involved and busy in those other marketplaces. We would very much like to have a higher presence in India. Importantly, we need to find partners to share the vision that we have about training, behaviour and skills. We are still in the process of looking for partners in India. Q: What kind of partners? Lonsdale: For example, educational establishments. They could be governmental, further education, or government skills development programmes for aftermarkets where IMI qualifications can make a difference. The partners could be those who are currently providing training, maybe private training organisations, to the automotive industry and who would benefit from an international qualification for their learners. Our model is to appoint IMI- approved centres around the world which would, by themselves, deliver the training to IMI standards, and therefore recognise their learners with IMI qualifications. Those are the partners we are looking for – government, private and OEMs.
marketplace but IMI is not well-established in India because of resource priorities from our side. Q: India is a big and emerging market with only 18cars for thousand people compared to about 600 in Malaysia, and 110 in China. You are very active in these countries and even smaller ones, but not in India, why? Lonsdale: It’s just an accident of history, to be absolutely honest. We see India as an important market for automotives. But from the IMI’s point of view, we have grown to such a level in Malaysia, China and South Africa over some 95 years. We see India as an important prospect for the IMI. We would like to have a strong presence in India. Our strategy, particularly for the last three years, with the appointment of a new chief executive, Steve Nash, with a BMW background, is much more focused on IMI’s strategic international development than it has been in the past. India is certainly an important prospect for us; this may take a little more time. We can appeal to people in the training and education sector on how to use IMI qualifications. Because of our historical relationships we understand the value that our Indian friends give to international qualifications, 26 | AutoPartsAsia | SEPTEMBER 2015
Q: What is your expert opinion about the strengths and weaknesses of the Indian automotive industry? Lonsdale: India’s strengths are manufacturing, process, an eye for quality, very great strategic vision in terms of what to do with regard to the whole nation. The weaknesses are not unusual; of course, there is a skills gap at all levels and all disciplines of business. There is also a knowledge deficit at that same level and there is some ambiguity in terms of focus on training both at the government and private level. That’s not unusual to India, it’s quite usual to many other countries. That is where IMI attempts to provide a platform to say that here are international qualifications, skills standards, knowledge standards where we can make a difference in partnership with the governments and training providers. Our investment study has made a big impact on people’s perceptions about the productivity value of training people. Those who are concerned about learning and training would always recognise that better trained people are more productive and more efficient, and they make real contribution to the world.
SAFETY
Bosch Safety Systems To Prevent Road Accidents India is one of the top three markets for the automotive industry along with the US and China. The potential for the growth of the Indian market is very big as only about 15 Indians out of 1,000 have a car now. India’s automotive sector is expected to grow as in other developing countries. But it is ahead of other countries in the rate of road accidents which are on the increase mainly owing to human errors. While enforcement of safety regulations is important there are also systems and tools manufactured by companies like Robert Bosch GmbH that help, to a great extend prevent accidents. Bosch is serving the road safety market with its proven and innovative systems which are relevant and important for Indians, Indian vehicles and roads. By T Murrali
B
osch’s accident research analysis of India-specific data now clearly underscores the significant benefits that 28 | AutoPartsAsia | SEPTEMBER 2015
Automated Driving
advanced vehicle safety systems such as Electronic Stability Program (ESP) can achieve. “We think, ESP which has seen widespread adoption in the developed markets will soon become very relevant for the Indian market,” Klaus Maeder, Executive Vice President, Chassis Systems Control, Robert Bosch GmbH, said. “Over the past few years, the installation rate of Antilock Braking System ( ABS) has risen steadily in the Indian market. Acceptance of technologies like ABS and airbags is rapidly growing among OEMs as well as end customers.”
Safety Systems Bosch has two important safety systems, ABS and
ESP (Electronic Stability Programme). Since 1978 Germany had road safety systems beginning with the traction control systems, then ABS and from 1995 ESP. The story continues with improved safety systems for buses. “In 2013 we introduced ESP for electric or hybrid vehicles and in parallel we had the first electronic booster. The next milestone was in 2014 when we changed the mid-range radar system to avoid accidents due to unforeseen traffic flow. In 2016 we will see cars in the market with active pedestrian protection on a stereo-video system and finally in 2022 or later we will see fully automated driving,” he said. Nine years ago the North American Highway and Traffic Organisation made a study
of the effectiveness of such safety systems and found that accidents for single vehicle passenger cars were reduced by 34 percent for SUVs and by 60 percent for larger cars. The penetration of ABS in the US for new cars is 87 percent and of ESP it is 59 percent. In Europe it is about 99 percent ESP for new cars. Germany had these systems for 20 years. A study by a government agency has found a clear link between the installation rate of ESP and ABS systems with the decrease in road fatalities. The German government, therefore, decided to implement ABS in all new cars 12 years ago and ESP six years ago. In the overall population of cars in Europe today the safety systems have reached a level of 60 percent. The installation rate for ABS in India, like in Indonesia, is around 40 percent and for ESP four-five percent in the new cars. However, the penetration of these systems among the total population is very low. “This could explain why we do not see any effect here now on road fatalities,” Maeder said. Bosch had started accident research in India a few years ago. Pilot project studies were done in 2009 and in 2011, in Coimbatore, Mumbai and Pune. The study investigated 300 plus accidents, with 700 parameters, to get more depth and detail of information. A consortium with Bosch, Daimler, Hyundai, Renault, Toyota and Honda as members was constituted for the exchange of information on accident research. Bosch followed international methods for classification with scientific support and investigated about 1,000 cases in 2014. “Unfortunately there is no positive trend in India. The fatalities now are higher than what it was 10 years ago. For passenger cars it is 70 percent, for two-wheelers 29 percent,” he said. According to the study two
Electronic Stability Programmde - ESP in action
out of five passenger cars can avoid accidents if they are fitted with ABS; if fitted on twowheelers it can prevent 1 out of 3 accidents. By using ESP up to 70 percent losses, skidding and accidents on the highways can be prevented. “We can send a clear message that by using ESP we can avoid 10,000 accidents and save lives on Indian highways,” Maeder said. Safety and driving comfort are the important factors for the automatic driving and driving systems. Safety is always promoted by the government and other official agencies and of late even by OEMs. Some of the OEMs in India have announced their safety policy in which they are not only making the airbag mandatory but some of them are also giving more options of ABS in their variants. A 100 percent launch of vehicles with ABS and ESP has not happened in India. It depends on the market. In Germany and Western Europe all OEMs had started with ESP, even before legislation made it compulsory. Most of the OEMs decided themselves to equip the cars with ESP because it was a selling factor. Star ratings are given to the vehicles based on their safety features. OEMs try to get a five-star rating, the highest for safety. “Proliferation is one of the major trends, which means that functions are growing very
quickly in all kinds of cars. On the other hand, there is need for differentiation. Having a big engine is not good enough anymore. On the technology side we see new sensors, new actuators, which are drivers for new functionalities,” he said
Automated Driving There is much discussion about automatic driving for which there is a long way to go. Bosch considers that there is a big market for safety systems even if the vehicles are semiautomatic. “The degree of automation is directly linked to customer benefits. Partly and highly automatic means the driver has to supervise always the driving function; fully automatic is when the driver is out of the loop. Automated driving will come in step by step and this approach is hand defined by technology and also from a psychological point of view. People will not just accept a fully automated car where they cannot interfere at all. In a survey in Europe, 52 percent of people said they would like automation in the car but they would also like to be able to switch it off. So there are both these possibilities but we feel the psychological barrier can be overcome,” said Dr HansPeter Hubner, Executive Vice President, Chassis Systems Control, Robert Bosch GmbH. There are cars produced for AutoPartsAsia | SEPTEMBER 2015 | 29
SAFETY driver will be doing something else, not focusing on the road, and the system will have to measure everything,” Hubner said. All these are future technologies he said. According to him the first project, integrated cruising, may come in 2017, highway assist in 2018 and in between, the pilot system that does not have to be supervised, may be introduced. All would be for driving at low velocities, which the system can handle easily, he noted. In the meantime a lot of support systems for automatic driving may be developed, he opined. The highway pilot being developed by Bosch is expected to be introduced in 2020 and the autopilot by 2025.
Support Systems automatic driving and parking in a protected environment at low velocities. The next step will be the highway-integrated cruising. Here the car is driving automatically, keeping the lane, accelerating and braking when required. The driver is supervising the car with his hand on the steering wheel. If he takes off his hand the sensors first give a warning and after a few seconds switch off the system. Next step is highway assist; here it offers the possibility to overtake and change lanes.
“These are all partly automatic driving. The next big step will be highway piloting; less supervision or with no supervision at all at certain times. The highway is an environment with few pedestrians so we can have a safer approach. The first introduction will be that the system is able to run fully automatically but the driver has to be able to take over after a certain time. If the system fails, it gives an indication and the driver will have to take over. In fully automatic driving, the
Bosch has been developing all kinds of sensor elements radio sensors, video cameras, ultrasonic sensors - and on the actuator side for driver assistance - ESP systems, electronic boosters, electric power steering and restrain systems. It has been working also on navigation systems to create maps for automatic driving and other different functions to support drive parking, travel assistance, cruise control, pedestrian protection with radar or video system on board, and emergency braking. Video cameras and sensors with good multi-sensing capability of 360 degrees around the car are the prerequisites for automatic driving. As safety is critical there should be protection technical failures. “What will the system do if some of the components fail, since there is no driver to interfere? So Cyber security is vital. Legislation is also an important aspect as some countries do not allow the car to be driven automatically without the driver; in some countries you can’t drive automatically if the speed goes beyond a limit,” he said.
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SAFETY
Bosch makes Hollywood fiction a reality
There are also issues like system architecture. For example, in braking, if the ESP system is not working then there has to be an alternate power or hydraulic supply to brake. Similarly, if the battery fails there should be a backup battery. These probabilities demand that the overall architecture of the system has to be different. In automatic driving, if one component fails, it is not possible to switch it off because there is no one to take over the vehicle. Therefore, the systems should be such that even if one component fails, it (the system) should be able to drive the car to a safe point. This would be one of the major challenges for developing the automatic driving system. Another important point is that for fully automated driving, “there should be an entirely different navigational map, one which is very precise and which clearly shows you where you are. But all these come step by step. We need time to develop them,” Hubner said. For Bosch the future cars will be automated, connected and also electric. They will also be online, perhaps something like a mobile phone, carrying information out of the cloud. “Electric mobility speaks for 32 | AutoPartsAsia | SEPTEMBER 2015
itself, and there will be parking management. These systems integration will be done in 2018, he mentioned.
For India The three specific points very relevant for India, according to Hubner are park assist system (the basic form of automation), the driver drowsiness detection system, and predictive emergency braking system. “When we decide on the functions that are relevant for the Indian market we take lots of data from our research study. We also take into account the safety trends that are developing here.’’ The company’s research has shown that the Indian consumers rate safety among the top three decision-criteria. The second is the awareness of safety technologies like ABS and air bags. The third trend is the proactive safety steps being taken by some of the OEMs. They use safety as a kind of differentiator for themselves and announce their policies, launch vehicles with mandatory airbags in it and increase the rate of installation of safety technologies. Kartikeya Joshi, Senior General Manager, Sales & Marketing, Bosch Limited, pointed out
that Bharat New Vehicle Safety Assessment Programme (BNVSAP) will provide the consumer an independent index to assess safer cars when they decide to purchase one. It may be noted that the government has made crash standards mandatory for all new vehicles from Oct 1, 2017.
Manufacturing Bosch, at its Chakan plant in Pune, has been producing ABS since 1997 and ESP from 2009. It is producing close to one million active safety units a year catering to all OEMs in India. Since Bosch has its own commercial organisation for sales, marketing, product management, and project management, it is capable of offering state-of-the-art support to the OEMs in India. The company has also set up state-of-the-art Technical Centre and Vehicle Test Lab at the same facility to train the engineers to be able to apply its technologies according to the specifications of the OEMs. It also has a separate team to support the hardware and software development for the products in India. “The overall result is that we are able to achieve the ability to do complete local application of ABS in India,” Joshi added.
COVER STORY
‘Make in India’ has become a cliché of the present government. There is nothing new. There had been a National Manufacturing Competitiveness Council since 2005. There is only a rephrasing of an ongoing concept by changing the word ‘manufacture’ to ‘make’. The previous governments had realised the important role of ‘manufacturing’ in the overall economic growth, skill development and employment generation. If the present government’s focus does not progress from `Make in India’ to `Create in India’ through innovation and research and development the `Make in India’ will fizzle out.
By T Murrali
I
aeroplanes. The market decides the worth of the product. The market can be something similar, inferior or superior to that of India. The primary reason for selecting India as the manufacturing base would be cost-effectiveness.
The product can be anything, from bicycle to
If the products made in India cannot be sold in markets more developed than and superior to that of India, and cost-effectiveness is the only
nherent in the ‘Make in India’ mantra is the question ‘what to make’? India has already developed the capacity and capability to make what almost 90 percent of its people need. If making in India is for the export market, three elements become critical: The product, the market, and the reason for choosing India.
Promote R&D To
‘Create In
Without Creating Ma k 34 | AutoPartsAsia | SEPTEMBER 2015
In India’
a king Will Make Off
AutoPartsAsia | SEPTEMBER 2015 | 35
COVER STORY
Automobile Production Trends
Source: SIAM
premise for choosing India, the making in India will not be sustainable for long. If the product is not innovative and of superior quality, India will lose its low-end markets as these markets advance and the consumers become more demanding. If cost-effectiveness is the only advantage, the make-in-India companies will leave India and make to cheaper destinations. If the government, policy-makers and the industry want to make ‘Make in India’ economically viable and sustainable, the focus should be on going beyond making; it should be on setting high standards of technical and environmental quality, developing innovative designs and creating new variants and products. And these are possible only by investments in research and development, and development of skills. The government has to increase investments in R &D and promote and incentivise private sector R&D, 36 | AutoPartsAsia | SEPTEMBER 2015
skill development and quality programmes. Though the make in India programme includes new initiatives designed to facilitate investment, foster innovation, protect intellectual property and build best-in-class manufacturing infrastructure, its thrust on R & D is unequal to the enormous task to be carried out to make India a viable, sustainable and lasting manufacturing hub. The Indian automotive industry, including both the vehicle and component segments, has grown to critical mass in volume and numbers over the years supported by entrepreneurs, government policy, fiscal and infrastructure incentives. If the automotive industry can be driven from ‘making’ to the next stage of ‘creating’, by increased investment in innovation and R & D and vigorous quality improvement, it can be made a model sector for the ‘Make in India’ campaign.
Vehicle Manufacturing Automotive industry in India has come a long way. The journey has been one of the toughest as the industry had to start from scratch when there was absolutely nothing – be it infrastructure, technology, talent, support from the government or raw material. Today India is a place to reckon with for the global automotive
Automobile Domestic Sales Trends
Source: SIAM
community as a growing market and viable manufacturing base. Until the mid-forties, no serious efforts were made to manufacture vehicles in the country. Most of the vehicles were imported and a few were assembled locally. The industry felt the need to move beyond the ‘screw driver’ technology and manufacture vehicles completely indigenously. The fire in the entrepreneurs’ belly fuelled establishment of automotive manufacturing units.
The industry has come a long way since Premier Automobiles manufactured the country’s first car in 1947, the year the country became independent. The car was made in collaboration with Chrysler Corporation of the US in the western region of the country in Mumbai (then Bombay). In the following year Hindustan Motors set up its plant in the Eastern side of the country, in Kolkata (then Calcutta); East followed the West. In the commercial vehicle front, Tata Engineering and Locomotives Company Limited (presently Tata Motors) was established in Jamshedpur in 1945 to make locomotives and other engineering products. The company found synergies as the group had its steel mill there. Around that time the Mahindra brothers decided to manufacture the Willys jeeps in Mumbai. At the same time a panel was constituted to make recommendations on developing the manufacture of automotives and tractors in India. During this time Ashok Motors (presently Ashok Leyland) was set up in Chennai (then Madras), for the assembly of Austin cars and trucks. Besides, Standard Motor Products of India was incorporated. Standard Motor Company of Coventry offered to set up a factory in Madras in association with Union Company (Motors) Limited to manufacture Standard Cars.
Bus Manufacturing
Paint was the first component to be produced for the requirement of automotives in the country in AutoPartsAsia | SEPTEMBER 2015 | 37
COVER STORY Automobile Exports Trends
Source: SIAM
Simpsons took up a franchise for Perkins ‘P’ series diesel engines to be manufactured in India. Subsequently it set up a manufacturing unit in Chennai (Madras). By the end of the First Five Year Plan (1951-56) the value of automotive components and parts produced in the country reached about Rs 2 crore. The Tariff Commission was set up in 1953 to facilitate growth of automotive sector in the country. It directed that only manufacturers with progressive manufacturing programmes were allowed to operate. This became the propelling force for indigenisation and self-reliance. The Tariff Commission Report on automotive industry mooted the idea of forming an industry association representing manufacturers of vehicles and parts. All India Automobile and Ancillary Industries Association (AIA & AIA) came in to existence in 1959 and in the first year itself it saw about 60 members. The same year Bajaj Auto was granted licence to make two and three wheelers. Only about 20,000 vehicles were manufactured in a year just after Independence, thereby restricting the availability to only the rich and famous. Today the industry has grown more than 1,100 folds and makes over 22.4 million vehicles a year.
Source: SIAM
1948 by the Amalgamations Group. India Pistons, belonging to the same group made its entry in 1949 to make the crucial engine part – pistons. It was a significant move as engine piston is a performance and safety critical part. During the late forties the Government announced that motor vehicles can be imported only in Completely Knocked Down (CKD) condition. 38 | AutoPartsAsia | SEPTEMBER 2015
The collaboration between Maruti Udyog and Suzuki in the mid-1980s and relaxation in Government policy set the tone for establishing several joint ventures including Ind-Suzuki, Hero Honda, Kawazaki Bajaj, Yamaha Escorts, DCM Toyota, Alwyn Nissan etc. As the need for exhibiting automobiles was felt to propagate sales, the association organised the country’s first ever Auto Expo in 1986.
Qualiity movement made auto component industry to establish robost process capabilities
IP Filings by India. Source: WIPO
robust automotive base in the country. Automotive players had been making in India both for the domestic market and exports.
Investments in Components
IP Filings by China. Source: WIPO
The foreign investors that came to invest in Indian automotive manufacturing industry, after liberalisation, include Ford, General Motors, Hyundai, Mercedes, Toyota, Volkswagen, BMW, Nissan, Renault, Piaggio, Suzuki, Harley Davidson etc. Today, Indian automotive industry is the world’s largest manufacturer of tractors and the second largest of two wheelers and the fourth largest producer of commercial vehicles.
Small Wonder The small car Tata Nano made a big impact on the global automotive space. It proved a point again on the capabilities of the automotive component manufacturers of India in developing a car at affordable cost. India’s world-class automotive component industry has been instrumental in developing a
The Indian auto-components industry can be broadly classified into the organised and unorganised sectors. The organised sector caters to the original equipment manufacturers (OEMs) and consists of high-value precision parts, systems and modules. The unorganised sector serves mainly the aftermarket. In the sixties the automotive industry grew significantly with several entrepreneurs getting into making auto components. It is also fuelled by the progressive curtailment of spare parts imports, perhaps due to foreign exchange shortage. This led to component manufacturers establishing tie-ups with foreign companies. Exports began with the rupee getting devalued after the Indo-Pakistan war in 1971. In 1966 the push came from the then President of ACMA, M K Raju, who said, “Our target for exports is 10 percent of our production and while I realise it is the most difficult task, we shall spare no efforts to achieve this. If we can at least export to the extent we import, we shall not be a liability to the country in the balance of payments position, if not an asset.” The turnover of automotive components rose to Rs 133 crore in 1971. In 1984 the components makers association spun off and Automotive Component Manufacturers Association of India (ACMA) was formed. The automobile portion of the association was renamed as AIAM. The AutoPartsAsia | SEPTEMBER 2015 | 39
COVER STORY
Patent applications by Top Fields of Technology in China. Source: WIPO
Patent applications by Top Fields of Technology in India. Source: WIPO
Germany, Delphi (the US), Aisin Seiki (Japan), Graziano Transmissioni (Italy) TRW (USA) Valeo (France) and Magna (Canada) set up manufacturing bases in India. During the past few years the Indian auto components industry has been on a growth trajectory. It was mainly owing to the buoyancy in vehicle manufacturing, recovery of the global economy, improved market demand and credit availability, though not at the expected levels of the cost of finance. The fiscal incentives also supported the positive sentiment. The cumulative foreign direct investment (FDI) inflows into the Indian automotive industry during April 2000 – February 2015 were worth$ 12,232.06 million as per the data published by the Department of Industrial Policy and Promotion (DIPP). According to ACMA, the industry exports are projected to reach $ 30 billion by 2020–21. Indian and foreign companies including BMW, Ford, Hero MotoCorp, HMSI, MRF, Uno Minda, Suzuki etc have lined up major investment in their respective sectors in the coming years.
Quality Movement
Top: China; Bottom: India
Source: WIPO
Society of Indian Automobile Manufacturers (SIAM) was set up 1999 and took over the work of AIAM. The automotive industry felt the need for enhancing volumes. Entry of Maruti Udyog, supported by Suzuki, ushered in significant changes in the way the components were made and supplied to the OEMs. Several multinational companies including Bosch, FAG and ZF from 40 | AutoPartsAsia | SEPTEMBER 2015
The quality movement evolved in the country during the mid1980s with the Confederation of Indian Industry (CII) propagating the need for improving quality and promoting the cluster approach. In 1986 when the Japanese Union of Scientists and Engineers (JUSE) allowed foreign countries to apply for the Deming Award, not many Indian companies took advantage of it. The Deming Prize was constituted based on Dr W E Deming whose contribution on statistical quality control helped Japan build up its foundations after World War II, besides recognition as a quality destination in the world. After opening up of the economy, a few industrialists including Venu Srinivasan from the TVS family, felt the need to improve quality of business to cope with international competition. Srinivasan and C Narasimhan of Sundaram
CHINA - Top Applicants in 2013
INDIA - Top Applicants in 2013
Applicants
Publication Rank
Applicants
Publication Rank
ZTE Corporation
2309
2
CSIR
91 235
Huawei Technologies
2110
3
Tata Consultancy Services
47
454
Shenzhen China Star Optoelectronics Technology
916
17
Ranbaxy Laboratories
46
460
Tencent Technology
359
53
IIT
34 609
BOE Technology
353
54
Lupin
30 683
Zoomlion Heavy Industry Science & Technology
Dr Reddy’s Laboratories
29
705
284
74
Monk Akarshala Design
28
731
Huawei Device
276
76
Cadila Healthcare
27
764
China Acamedy of Telecommunications Technology 227
Reliance Industries
22
945
92
Hetero Research Foundation
19
1078
Institute of Microelectronics of Chinese Academy of Sciences
139
140
Shenzhen BYD Auto R&D Company
130
150
Source: WIPO
Source: WIPO
Clayton propagated in India the Total Quality Management (TQM) programme. As a result two TVS group companies won the Deming Prize. While the brakes division of Sundaram Clayton (now Wabco India) was the first Indian company to get the Deming Prize in 1998, TVS Motor Company won the same in 2002, becoming the first two-wheeler manufacturer in the world to get this coveted award; a few companies followed as winning the Deming Prize had several advantages. Winning Deming and continuously practising TQM is one of the key determinants for the global performance bike leader BMW Motorrad to associate with TVS Motor Company.
TQM movement spread, several other companies turned their attention towards this and got involved in the process. Restructuring of the manufacturing cells, lean manufacturing tools, built-up competency and reduced rework, processing of the scrap and very few machine breakdowns were some of the benefits of the quality movement. TQM helped several manufacturing organisations that wanted to focus on product development. It also helped the companies transform the mindset of their employees. The emphasis is on preventive measures and so the automotive companies have preventive and detection poka-yokes. These
Interestingly, India continues to be the second largest in terms of the number of Deming Prize recipients in the world, next only to Japan. After Sundaram Clayton’s achievement, the movement picked up rapidly as Professor Tsuda and other Japanese experts began educating companies on TQM. In addition, several companies have gone through CII’s TPM club for TPM (Total Preventive Maintenance), awarded by the Japan Institute of Plant Maintenance. Besides, the cluster programme initiated by Maruti and CII to develop auto component manufacturers under Tsuda was a turning point. With the success of the first cluster, the second one began subsequently, and as the benefits of getting into the AutoPartsAsia | SEPTEMBER 2015 | 41
COVER STORY
India is the manufacturing hub for small-sized vehicles for several global organisations
initiatives led the companies practising TQM and TPM towards maintaining very low ppm levels. It made everyone in the organisation align with the set goals and transformed the organisations from operating the business to managing it. It significantly improved the work culture in the organisation with people having total clarity on their roles and responsibilities in contributing towards company goals. While there are immense benefits in terms of customer satisfaction and confidence, it is profitability that will keep suppliers healthy. Even in the current economic situation TQM companies are profitable. So far 23 companies in India have received the Deming Prize and of which
seven companies obtained the next level – Deming Grand Prize - Sundaram Clayton, Mahindra & Mahindra, Rane TRW Steering Systems, Tata Steel, Lucas-TVS, Rane Madras and Rane Brake Lining. Practising quality concepts helped companies to address abnormalities to sustain the quality movement, eventually keeping the customer satisfaction index high. Many organisations practice TQM as it increases capability of employees, the mean time between failure and response, machine availability and teamwork. According to industry experts, a few Toyota group companies decided to enter the Indian market after visiting some of the Deming companies here. This is because it made them confident that Indian auto component manufacturers could implement TQM successfully.
Exports When the economy opened up, about 70 percent of India’s exports were to aftermarket. In the following decade, the components makers made significant progress with OEMs, who are more quality conscious than aftermarket players. Today, close to 85 percent of the exports go to OEMs and large Tier-1 companies that supply to the vehicle makers. The suppliers have evolved over a period of time and began investing in product design laboratories. 42 | AutoPartsAsia | SEPTEMBER 2015
India is criticised for being a Jugaad ( the Hindi word means solving complicated issues, perhaps by bending rules) Some of the multinational companies feel that it is one of the biggest source, which ignites innovation to fix certain problems. Recently the Chairman of Mahindra Group, Anand Mahindra said, he wanted everyone to work towards moving from ‘Jugaad’ to ‘Jhakaas’ (superb -in Hindi). He said this is about thinking differently and not just thinking cheap. The quality, and environmental standard movement in the country has to be taken to the global arena on a sustained manner for ‘Make in India’ to be relevant in the long-term.
Automotive Mission Plan The Automotive Mission Plan 2006-2016 (AMP) was announced by the Government of India in 2006. It was to make India the world’s destination of choice for design and manufacture of automotives and automotive components. The AMP projected that by 2016 the output of automotive sector will be at $145 billion and
accounting for more than 10 percent of the GDP, from the $35 billion and accounting for three to four percent of the GDP in 2006. These projections would also provide direct and indirect employment to about 25 million people. The other objectives, according to DIPP, were to set up technology modernisation fund for SMEs and the establishment of automotive training institutes
and auto design centres, special auto parks and auto component virtual SEZs. However, AMP could not achieve fully the set goals. According to SIAM the economic slowdown in the last three years would force the Indian automotive industry to miss by up to 25 percent of the set targets. In this scenario, the Automotive Mission Plan for the next decade, beginning 2016, is being prepared and expected to be released shortly.
R&D Investment With the initiatives taken by individual companies the India automotive industry has become well known in the globally. Companies like Maruti and Hyundai made India as the hub for making small cars. However, the Indian automotive industry is facing growing competition from other low-cost countries; and the key missing link in the chain is Research and Development. The Make in India campaign should help the existing players in India leverage their strengths and expand
further by making new investments in R&D and other areas. Therefore, for Make in India to really happen, the country needs to focus on invention and innovation in addition to enacting laws that will really promote entrepreneurs. Though India has evolved in manufacturing by developing path-breaking process capabilities, the original invention is very few. AutoPartsAsia | SEPTEMBER 2015 | 43
Manufacturing in India has become world-class; about a decade ago the country reached a unique status that every vehicle rolling out of assembly lines from anywhere in the world would have some components manfuactured in India.
Research and development, innovation and quality standards have not received the required investment, or promotional support either from the government or the private sector. A notable initiative from the Ministry of Heavy Industries and Public Enterprises is the setting up of the National Automotive Testing and R&D Infrastructure Project (NATRiP) at a cost of $88.5 million for the industry to have global performance standards and also to provide low-cost manufacturing and product development solutions. The Union government has offered tax rebates and excise duty concessions on R &D expenditure. For auto components the government has offered a weighted tax deduction under Section 35 (2AB) of the Income Tax Act for both capital and revenue expenditure incurred on scientific research and development. Tax benefit is also given to assessees for any sum paid to public sector institutions or to specific people doing research on approved projects. Manufacture of batteries for electric vehicles and hybrid vehicles also are offered tax concessions. The state governments
China; Source: WIPO
44 | AutoPartsAsia | SEPTEMBER 2015
also give incentives and support for R&D investments. But these passive and half-hearted actions will not promote R&D or innovation to a level to ‘Create in India’. Though initiatives like Maruti Centre of Excellence (MACE), ACMA cluster programmes and similar tasks taken by others are welcome, there is a long way for the country to go. This is because research in India is little known as compared to China. Though a comparison is unfair a close look at what the Chinese government and industry have done will vindicate the long miles India has to travel to build its own sustainable manufacturing base. Take for instance the overall Patents filed by China and India. The IP filings by China has grown by 44 folds to reach 734,081 in 2013 from 16215 in 1999. While India has only grown by close to seven folds to 20,907 from 2,645 during the same period. In 2013 India made 21,000 patent filings compared to 734,000 by China and 501,000 by the US.
India; Source: WIPO
Zinnov, a leading management consulting firm, recently released its recent findings on the R&D spend by top Global 500 companies for the year 2014. Total R&D investment by Global 500 companies grew by 4.31 percent to reach USD 614 billion mark in FY2014 from USD 604 billion in 2013. The highlight is that over 65 percent of the overall R&D spend was contributed by the top 100 R&D spenders, with majority of this growth coming from North American and APAC based firms. The companies based in Beijing, Shanghai and Shenzhen contribute to more than 95 percent of the total research and development (R&D) spending in China. The Global 500 R&D spend in China stood at USD 26 billion in 2014 and it is expected to reach $80 Billion by 2020. The number of ‘billion dollar club’ members (companies that spend more than USD 1 billion in R&D Expenditure) in the Global 500 R&D spenders has increased though the share of R&D spending has not seen any significant change. It also highlighted that the ‘billion dollar club’ is gaining more companies from the APAC region. In terms of geography, China saw the maximum amount of growth of 20 percent in R&D spend from 2012 to 2014; even higher than that in Europe (consistent over the last 3 years) and North America (steady at 4-5% growth) and Japan (which is on a recovery after a strong decline the previous year).
According to Preeti Anand, Associate Director, Zinnov, “China is visibly and firmly establishing itself as an R&D powerhouse with 4x the growth in R&D spend as compared to even US West coast companies.” On the innovation index also India has been performing badly. According to 2014 edition of Global Innovation Index survey, India is ranked 76, slipping from 65 th position in the previous year. The country is the worst performer among BRICS nations, with all the others improving their positions from that of the previous year. Again, China led the pack among BRICS nations holding 29th position, improving by six places. Russia soared to 13th place from 49 while South Africa ranked 53rd, gaining places, and Brazil improved by three places to reach 61st position. The spending on R&D by India is in fractions of the GDP while it is close to four percent by Korea. The automotive related research will still be less in India. The downside is that more than three-fourth of the investment is made by the government. This does not mean that the government can wash its hands off. While it is necessary for the organisations to invent, the government needs to create a conducive atmosphere to initiate research and development. If the government can make this as a system in India, it will really help not only the automotive industry but the manufacturing sector as a whole. Will the government get into action, rather than finding fancy words, and look into possibilities that will encourage Create in India? With inputs from Joseph Vackayil AutoPartsAsia | SEPTEMBER 2015 | 45
Media Partners
PREVIEW
More Participants Expected At Automechanika Shanghai APA Bureau
T
he 2015edition of Automechanika Shanghai, Asia’s largest trade fair for automotive parts, accessories, equipment and services, will be held during December 2-5, 2015 at the National Exhibition and Convention Centre, Puxi, Shanghai. The expanded venue will accommodate the show’s substantial development and house the 280,000 sqm exhibition space, which is an increase of 27 percent from 2014. The number of worldwide exhibitors is also expected to increase eight per cent to 5,300. The success of the show has attracted new exhibitors including industry-leading brands like AISINCHINA, Bilsten, Denso, Dometic, DuPont, Litens, SATA, SWISSVAX and TRIBOS. More names from local automotive parts production bases and companies from second-and third-tier provinces of China are also among the exhibitors. The increase in high-quality exhibitors has attracted the visitor base, with numbers expected to reach 100,000 this year, up 12 percent from the last edition. Representing the show organiser, Jason Cao, Chairman of the Board of Management, Messe Frankfurt (Shanghai) Co Ltd, said, “Automechanika Shanghai has built its reputation as the acclaimed ‘mustattend’ industry event for information exchange, marketing, trading and education, serving the scope of the automotive industry. Due to the immense continued growth of the show, the new locale will not only bring a broadened opportunity for sourcing products, but also fresh
ideas and action plans.” The show is organised by Messe Frankfurt (Shanghai) Co Ltd, a subsidiary of Messe Frankfurt Exhibition GmbH, one of Europe’s oldest and largest trade fair organisers, and the China National Automotive Industry International Corporation (CNAICO), is an integrated state-owned enterprise specialising in international trade and exhibitions, with diversified operations across industries in China. As a result of Messe Frankfurt and CNAICO’s robust worldwide resources and vast network, Automechanika Shanghai receives strong support from more than 50 local and overseas trade associations and government agencies. Regarding the Automechanika Shanghai fair and the cooperation between organisers, Han Xiaojun, General Manager of CNAICO, said, “The partnership our two entities have enjoyed has proven to be fruitful for the industry and the widening emerging market. The effort included attracting more domestic and overseas leading brands and pavilions to demonstrate the variety of the latest technology, product and service, on the other side, extending into second-and thirdtier Chinese cities and overseas emerging markets, where growth potential is huge. This will result in greater prospective markets for both exhibitors and visitors of Automechanika Shanghai.”
Booming Sectors The Parts & Components sector will expand exhibition space to 146,000 sqm to feature the latest
products and technologies and the international hall will swell to 27,000 sqm. The Auto Air-Conditioning Zone in this sector will be further enhanced to accommodate over200 companies of the entire supply chain. The Repair & Maintenance sector will be housed in a 40,000 sqm space to accommodate over 700 exhibitors from around the world and it will incorporate more leading brands from local repair and maintenance hubs, including Guangdong, Hebei, Liaoning, Shandong and Yangtze River Delta. Overseas countries and regions, including France, Germany, Italy, Japan, Korea, Taiwan and Turkey, will showcase their innovative and quality products and technologies. Accessories & Tuning, is projected to rapidly expand to 54,000 sqm, which is a 50 percent jump in space utilised from 2014. Tuning products will be further emphasised this year, with newly launched items introduced through fascinating on-site activities and hands-on demonstrations. In addition, the Premium Buyers Club will continue this year, which offers visitors an upgraded VIP buyer experience. This programme offers exclusive services for highquality premium buyers at a senior management level, or those who hold full purchasing authority during the show. Benefits include pre-showupdates, usage of facilities in the premium Buyer’s Club Lounge and pre-arranged networking meetings with selected quality suppliers to make sourcing more effective. AutoPartsAsia | SEPTEMBER 2015 | 47
SPECIAL REPORT
OMRON Offers Automation, Sensing,Control Solutions To
Automotive Industry Established in 1933, OMRON Corporation is a global leader in the field of automation based on its core technology of sensing and control. Its business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronic components, social infrastructure systems, healthcare, and environmental solutions. Incepted in 1996, OMRON Automation India caters to over seven industrial segments like packaging, automotive, material handling, solar, food & beverages, textile and panel building applications. The product portfolio includes industrial components, automation systems, sensing and safety, motion and drives, and software. By T Murrali
O
MRON provides a wide gamut of solutions utilised in the industrial automation domain such as laser sensors, proximity switches, PLCs, Vision systems, safety components and a multitude of auto sensors. “Our product basket is pretty huge; we have something like 200,000 products. As an organisation we make sure that all of them are on some kind of an integrated platform. They are all connectable blocks that can be used to build a solution. They are not disparate pieces, they 48 | AutoPartsAsia | SEPTEMBER 2015
Sameer Gandhi
Pick and Place robots at OMRON Automation Center in Mumbai
can be used discretely but at the same time, they can also be put together to build a larger solution. This explains one of the core aspects of what we do’’, Sameer Gandhi, Managing Director, OMRON Automation India, told AutoParts Asia. For the automotive industry, the company offers automation, sensing components and much more. “We can also do things like traceability. It is all about ensuring the right assembly of all the solutions. For example in a brake assembly (which has multiple parts), a piston ring assembly or a ballbearing assembly- the entire assembly can be checked for visual completeness and quality including dimensions by an OMRON vision system. The vision system not only identifies whether the quality is acceptable or not, it can also store the image for future analysis Automation can be selectively customised and the company has been doing this for many car manufacturers successfully. Another example pointed out by Gandhi is the flexible manufacturing followed in the automotive industry. It can be as simple as a petrol version followed by a diesel version, and again followed by a petrol version on the same line. There are parts of both that are fixed manually. For instance, a sticker pasted on the inside of the fuel tank lid informs whether it is petrol or diesel. It is just pasting a sticker. It is simple but it is crucial. How does the worker know which version it is and what part he has to work with? A small mistake by the worker can ruin the car as people will fill in the wrong fuel! So how do we error-proof this kind of an assembly operation? One possible solution is by tracking the item (in this case the car) using an either a bar code sticker on the car or a RFID tag. “The worker reads the bar code using a hand-held scanner, or a Radio Frequency Identification (RFI) tracker is fixed which identifies which car variant it is. There is a matrix of boxes where various parts/items are placed. Based on the reading from the bar code or the RFID tag, the system
indicates to the worker which particular box he is supposed to pick up the part from. When the worker puts his hand in to pick up the sticker (or any other part) he actually trips a switch. The switch indicates back to the system that this job is done. The important thing is, if he goes to the wrong box there would be an alarm so his supervisor gets an alert that he person has made a mistake and there is a possible problem. So even if the car has moved down the line, he knows which car has the error. He does not have to disrupt the entire assembly; he just goes to the end, traces the car and makes the change.” However, such automation will not lead to deskilling of people. Automation is an enabler to improve productivity and reduce cost, which in turn will spur demand and provide employment to more people with higher skill sets, Gandhi said. “What is happening across the board in the automotive industry is that beyond a point it is not possible to do things without automation for the sake of productivity and quality. As long as you make 20 models a minute you can probably check whether a thing is there or not but when you make 100 models a minute, it is not possible to check them manually. Automation relieves the worker from a monotonous job. This will help the manufacturer produce more and reduce the cost to the consumer, which in turn spurs market growth and investment in another machine. So the same worker is skilled up to operate that new machine which comes in,” he explained.
Traceability The automation system can even trace the genesis of an error. It is a solution that OMRON provides and includes sensors, switches, scanners, RFID tags, vision, etc. But traceability is more than that. Traceability can give the life history of a particular component, from the time it was melted and produced in a foundry till it is used in a car. All the processes it has gone through, all the sub – assemblies or the components that have gone into it and AutoPartsAsia | SEPTEMBER 2015 | 49
SPECIAL REPORT
their history are recorded in a server, to be retrieved when needed. With the advancement in technology it is possible to mix the process data and the vision data and tag them all together. Gandhi explained the availability and application of this kind of process data with the example of a car engine assembly where multiple actions, activities and components go inside. A lot of it is visually inspected for absence or presence. Even if it is present, the image is taken and stored along with the serial number of the engine and together with all the relevant process parameters like, torque, temperature, etc. In case the engine of that car being used by a consumer develops a fault a year later, the car manufacturer can track back from the car to the engine and then by looking at the images and process data try to figure out at least some cause of the problem without actually having to open the engine. Thus, speeding up the issue rectification and possibly improving customer satisfaction. These process data can also be used for statistical analysis of the machining centre and even help the designers take corrective action. The design for manufacturing, assembly and after-sales can 50 | AutoPartsAsia | SEPTEMBER 2015
be integrated. It can help the manufacturer take corrective action and do a Plan Do Check and Act (PDCA) to develop a better product. Normally manufacturers have to store huge amount of data to trace back to the genesis of a problem and they spend huge amounts of money for servers and other things. Millions of terra bytes of data are getting into the system. But the important aspect, according to Gandhi, is that “the industry needs to focus on how to make sense of all of these, how can they be used in a meaningful fashion? It is a lot of information and unless we find a way to make knowledge out of that information we are going to drown ourselves in it without reaching to any conclusion�. The biggest amount of data is consumed by images. A typical image can be anywhere between two to four MB. While the company has a compressing format of its own which helps reduce the storage-size of the image, there is still a lot of big data all around. However, the cost of managing data has been coming down year on year. To a question how can the company help the suppliers collect data and the problems associated with it, Gandhi said, for OMRON,
the task has been made simpler by a Programmable Logic Controller (PLC) that can write and read data directly to and from an SQL database. Typically, this was done using an OPC server. But OPC servers severely limit the amount and speed of data that can be transmitted through. Besides, they may also require specialist IT support to operate and maintain. On the other hand, the company’s PLCs can directly connect to an SQL database on a server and perform read/ write of data. This data can include images as well since its vision controller can also directly communicate with the SQL server. If server connectivity is not possible, data can be extracted, from the PLC, on a simple Secure Digital (SD) card. Once it is on an SD card, it is a simple matter of putting it on a PC or a server. There are many possibilities to use this data; the users, the people who are making these parts or people who are manufacturing these items, are the ones who can see immense possibilities in this. Gandhi said that in the automotive sector, OMRON has also been doing significant work for the tyre industry, battery manufacturers and other such ancillary suppliers to the automotive industry. “For one of the largest
tyre makers in the country, we figured out after discussing with the customer that the presence of a foreign object on the tyre rubber belt during the production process can lead to tyre failure in the running condition. It is a possible human safety issue. So we developed a solution for them to detect those foreign particles; when the foreign particle is detected, they get an alert and can take corrective action. It not only makes a lot of sense from a productivity and quality improvement point of view but it can also enhance the safety of the automobile users,” he said.
Automation Cost Automation is a business investment. What is important is to look for the right cost rather than low cost. “I think instead of low cost we need to look at the right cost because like everything else in business this is an investment. If buying a cheaper sensor gives you the required returns then by all means it can be bought as there is no need for a smart sensor for that. It doesn’t make sense at all because it is just adding to the cost. If buying something cheap compromises quality or results in intermittent working of the sensor then that is a problem. Right costing is a AutoPartsAsia | SEPTEMBER 2015 | 51
SPECIAL REPORT combination of multiple factors, right design on the machine, right selection and the right vision (for the future),” Gandhi said. OMRON caters to the multiple facets of manufacturing like fabrication, casting and forging, where there are millions of applications. About the methodology of meeting the needs of multiple domains without having a deeper knowledge of each of them, Gandhi said, while we do have some people with industry backgrounds, it would not be possible to have domain knowledge of all the industries as well as the people connected with them have. “Someone who is running a foundry knows the process best. What we do is we approach the customer and ask him ‘What is the biggest challenge you have for productivity or quality? What is it that you would like to improve in your processes?’ A few questions like that. Once we know the challenge we can suggest solutions based on our experience since many of these challenges and solutions remain the same across different industries,” he said. The company, for example, provides solution for the specific problems of the customer like ensuring a label on the cap. “We have solutions that detect whether the label is there or is missing or if it’s printed and affixed properly or not. From the automation point of view, the concept is the same whether the can contains beverage or lubricant. Another important aspect in proposing any such solution is ‘how much uncertainty can we reduce’? One of the ways, for us to reduce the uncertainty is to use our Automation Centre in Mumbai, which we opened last year, where we have, among other things, a test lab. We can run tests on the sample and tell the customer what we can do with this configuration. There are many variable factors like variants of vision cameras, variants of lenses that go with them, the speed at which the component is moving, light sources and the ambient lighting, etc. And you could go wrong in any of these. We try to minimise that uncertainty by taking a sample. We check it out, and then tell the customer what we can achieve (and how) and what can’t be achieved enabling the customer to take informed decisions.” The automation centre has a lot of other components besides the vision lab. Customers are allowed to see them and even have a live demo, like a 24/7 exhibition. There is a connectivity lab to build and test connectivity solutions. OMRON technicians will develop the solution, show it, prove it and give it to the customer. There is an application centre too where the customer can come and simulate his programmes. It also has delta and SCARA robots where sample tests can be run for the customers. Thus the 52 | AutoPartsAsia | SEPTEMBER 2015
uncertainty in the development process is reduced, even eliminated. ”It is very difficult for a customer to spend a few lakhs on just a hunch that something might work. Using our automation centre, we’re trying to reduce, if not eliminate, this uncertainty by providing some practical data points for the customer to take decisions’’, Gandhi said.
Service Support OMRON has remote diagnostic tools that can be used by the company, the customers and OEMs to track the performance of these systems. However, remote diagnostics is not very popular in India yet. For most people the company’s product would not need much of a service support. “We do have a lot of people to provide service support and backup, our own people and also our channel partners who have their own staff to provide support. We have close to 80 channel partners in 40 locations across the country,” Gandhi said. OMRON has manufacturing facilities in Japan, China, Thailand, Malaysia, Netherlands, and the US. The company follows a feeder factory concept globally; for some components there are multiple factories. It has about 200,000 parts or SKUs (Stock Keeping Units). “Though the frequently sold units are about 8,000 in our warehouse, in Bangalore, we hold at least 2,500 to 3,000 stock items at any point of time. They keep varying depending on input and output but typically that is the operation we have and we’ve developed systems to handle them”, he said. About the Indian market Gandhi said that “We are in a sweet spot because we have a demographic dividend, we have a population that is coming more and more into the work bracket and we have a large, growing middleclass coupled with massive urbanisation. So while a lot of deprived people are moving up, the middle-class has more disposable incomes and so the consuming class is increasing. They are the ones who are buying new cars, new phones, etc. They are the ones going to the supermarket and buying stuff offthe-shelves and even ordering on line”. “All these, in one way or other, are touched by OMRON. You buy a new car, it has probably been ‘touched’ by the company somewhere, you service your car and the car company puts in a new spare part; there is a business coming back to us. When you pick up packaged water, a cola or a biscuit packet in a supermarket, somewhere down the line it is connected to OMRON. So we are actually touching lives. Though not that visible, however we are touching a lot of lives by being present in a lot of critical processes and this is what is our corporate motto as well”, concluded Gandhi.
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PERSPECTIVE
Make In India - Will Make It Happen ‘Make in India’ The ‘Make in India’ campaign of Prime Minister Narendra Modi, that encompasses a gamut of initiatives to promote investments and growth in Indian manufacturing, has invigorated the domestic and the global industry. This has certainly brought in much needed focus and impetus for reforms related to the manufacturing sector. Several of the leading Indian auto component players have announced expansion plans which include: This will lead to the further strengthening of the automotive supply chain in India. The autocomponent sector is one of the 25 sectors that the Government of India
By Vinnie Mehta
T
he automotive sector has emerged as a bellwether of the Indian economy. The coming of Suzuki Motor and Honda Motor to India in the mideighties saw the dawn of a new era in the Indian automotive industry. The auto component sector has come a long way in terms of size, scale and quality. Today many component players have crossed the $1 billion mark in turnover and many more are close to the mark. India has become an attractive destination for component manufacturing and has absorbed world leaders like Bosch, Magnetti Mareli, ZF, Delphi, Honeywell, Denso and many others. With high skill levels and a competitive environment, many of the global leaders are considering India not only as a manufacturing destination but also as an engineering and R&D hub. The well-developed Indian auto component sector produces a diverse portfolio of products which include engine parts, drive transmission and steering parts, body and chassis, suspension and braking parts, equipment and electrical parts, besides others which are best in class. 54 | AutoPartsAsia | SEPTEMBER 2015
Company
JBM
Wheels India
has identified to push through its Make in India campaign. First, the Government has taken several radical measures towards ease of doing business in India. It has initiated the process of use of technology, convergence and integration of departments across sectors. Such measures will make India a much better place to invest, create jobs and wealth, and enhance production and productivity. Second, the government has invited a wide range of sectors for foreign direct investment (FDI). Already, it has allowed 100 percent FDI in Railways; deregulated the defence sector to the extent that 60 percent of the items now do not require
Investment Amount in INR Crore (approx. value) 200
70
Towards Expansion of facilities and focus on new projects automation, process changing, new product development and capacity expansion in aluminium and non-wheels business
Rane Group
220
Capacity expansion in Haryana plant and expansion of its hydraulic business in Chennai. Will also expand the air bag business unit at Singaperumal kovil near Chennai
Lumax Industries
300
to augment capacity over next five years
Motherson Sumi Systems
932
capacity expansion and building new office facilities
Minda industries
Uno Minda
RSB Group
450
New products, and betting on future demand growth. Earmarked 150 crores for four plants to expand lighting business
700-800
Investment planned over next 3 years. Rs 200 crore set aside for acquisition in Europe. Doing a feasibility study for an alloy wheels plant in Bawal in Haryana
60
Set up state of the art facility in Sri City
Turnover - Auto Component Industry: 2010-15 Turnover - Auto Component Industry:CAGR: 2010-1511% CAGR: 11% 35.9% 2000
2160 (39.7)
2046 (42.2)
2117 (35.1)
30%
1883 (41.3)
25.3% 1500
20%
1386 (30.8)
11.1% 1000
of the industry was possible because of frugal engineering, a key strength of the Indian auto component manufacturers. Over the years, the component industry has developed strong manufacturing capabilities that have helped in keeping costs low and meeting stringent global quality norms. One must also appreciate the handholding of the component sector by the OEMs in adopting the global best practices.
40%
2348 (38.5)
10%
8.7% 5.6%
500
Growth Rate in Rupee Terms
Turnover in INR’ 00 Crore (USD Billion)
2500
0%
-2.0%
-10%
0 2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
(Turnover includes supplies to OEMs, aftermarket sales and exports)
Third, the Government is marketing the identified 25 sectors, including the automotive and auto components, across the world. Fourth, the central government is working in partnership with the States to become change agents. Fifth, there is a focus on improving and enhancing infrastructure. Industrial corridors, manufacturing cities and industrial clusters are proposed to be developed. All these measures 2 augur well for the automotive industry.
Healthy Growth Propelled by the positivity of ‘Make in India’ campaign, the auto component industry witnessed 11 percent growth, its highest in last four years, and registered a turnover of Rs 2.34 lakh crore ($38.5 billion) compared to Rs 2.11 lakh crores ($ 35.13 billion) in 2013-14 with a healthy CAGR of 11 percent over a period of six years. The growth was led by rising consumption by the domestic OEMS, and exports, especially to Europe, the US and to other Asian countries. It is interesting to note that when the overall exports of India declined
by 1.2 percent, export by the auto component industry grew 11.4 percent to Rs 68,500 crore in 2014-15
Automotive Mission
The Automotive Mission Plan 2016-26 (AMP 2026) is the collective vision of Government of India and the Indian
Exports - Auto Component Industry: 2010-15 CAGR: 29%
900
80%
60.7%
Growth Rate in Rupee Terms
licensing. It has enhanced FDI in defence manufacturing and has liberalised the construction sector in a major way. Railways, Defence and Construction equipment hold attractive prospects for the auto component industry. Significant investment has already been announced by several global OEMs to expand the manufacturing base in India.
Turnover in INR’ 00 Crore (USD Billion)
1
685 (11.2) 614 (10.2)
40.7% 600
40%
526 (9.7) 427 (8.8)
23.3%
303 (6.7)
189 (4.2)
300
16.7%
11.4%
0%
-19.3% -40%
0 2009-10
2010-11 Africa 7.28%
Oceania 0.75% Europe 36.39%
Asia 25.29%
2011-12
2012-13
Latin America and the Caribbean 7.04%
North America 23.25%
from Rs 61,400 crore during 201314, registering a CAGR of 29 percent over a period of six years. The Automotive Component Manufacturers Association of India (ACMA) has played a pivotal role in supporting its members in export development and in discovering new market opportunities. Currently it exports to more than 160 countries, which has been growing at 15 percent a year. The consistent growth in auto component exports is a clear indication of the growing credibility of ‘India Made’ components in the global auto supply chain. The impressive performance
2013-14
2014-15
Exports Destinations: Top 10 Countries USA
22.35
Thailand
Germany
7.51
Brazil
3.38 3.37
Turkey
6.49
China
3.07
UK
5.43
UAE
2.95
Italy
4.79
France
2.92
Automotive Industry outlining the growth trajectory of the Vehicles, Autocomponents, and Tractor industries for the next ten years in terms of size, contribution to India’s development, global footprint, technological maturity, competitiveness, and institutional structure and capabilities. According to this the Indian auto component industry may attain $223 billion in revenue by 2026, with exports in the region of $84 billion. As the automotive industry is emerging as the engine of India’s economic growth, its future is very bright. (The author is the Director General of ACMA and views expressed are personal.) AutoPartsAsia | SEPTEMBER 2015 | 55
INSIGHTS
There is proven relationship between effective on-the-job training and employee’s performance, job satisfaction, loyalty and intent to stay with a company.
Invest In Employee Skill Development By Louis P Rumao
C
hina’s emergence from a mere three percent share of global manufacturing in 1990 to the current 25 percent is marvellous by any standard. Many countries are trying to imitate China’s achievement. The two main ingredients that made the Chinese marvel are the foresight of the national leaders to upgrade infrastructure, (roads, railway, waterways, power, ports, airports and telecom) and to emphasize on vocational training. More than seven million vocationally-trained high
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.
56 | AutoPartsAsia | SEPTEMBER 2015
school students graduated to enter the manufacturing sector as trained production workers. Countries trying to imitate China’s manufacturing achievements need to pay special attention to these two factors -infrastructure and skill development. In many industries there is a skill gap. It means that “workers with the skills the employers want are not applying for jobs at the salary and benefits being provided.” Just because employers say they cannot find workers with specific skills does not mean that those workers don’t exist. In fact, they do! However, employers and governments can help bridge the skill gap. Employers need to institute and enhance training and apprenticeship programmes. Governments should spend more to support `dual-track’ high school and post-secondary industrial education. Traditionally, employers have been responsible for
developing the skills of their employees. However, this responsibility has been shifting. Some employers continue to invest in training. In many sectors job seekers and education providers take this on. This shift has produced a labour market catch-22 situation. Employers are looking for workers with work-ready skills to fill good-paying, available jobs. But not all are providing needed and adequate training. As a result, job seekers face the daunting task of locating opportunities for work, identifying the skills they need to get those jobs and finding out where to learn those skills from. Individual companies cannot do much about public education system and even less about their country’s infrastructure. But they can certainly train their employees to improve productivity and job satisfaction! Organisations commit to training for different reasons like improving product quality, introducing technology
to gain operational efficiency, reducing errors, etc.
Training Cost Hiring and training a new employee can be very expensive, undermining profitability. Hence it is important to consider employee retention efforts to help curtail unseen costs that come with the new employees. The costs to replace employees vary with their earnings level. One study estimated the cost to replace a $8 per hour employee averages about $5,500 per turnover. Executive positions, which are well-compensated and likely to have stringent educational
credential requirements, have higher turnover costs than jobs with low educational requirements. Very highly-paid jobs and those at the senior or executive levels tend to have disproportionately high turnover costs as a percentage of salary, sometimes exceeding 200 percent of annual salary. In the US, one estimate suggests that the private sector spends over $100 billion a year on training, while the Federal Government spends $3.4 billion. This does not cover even one percent of the 165 million workers who could benefit from training. In 2013, organisations,
on an average, spent $1,208, and 31 and half learning hours on each employee for training. Yet capturing the training cost per employee is only the initial step in quantifying the value of training. From there, it is necessary for the management to analyse the effectiveness of training by identifying operational results, if any, that training had on employee performance. To evaluate more completely the return-on-investment for training, top executives must work with department managers to determine the impact of improved employee
performance on business results. For example, if recent training improved employee performance by reducing errors made by production workers when assembling a product, it may be possible to quantify the savings in rework and gains from customer satisfaction.
Assessment Methods The top three methods used frequently for employee development are generic training, cross-functional training and leadership training. They use different delivery methods. Most of the formal training programmes take place
in an instructor-led classroom. But the growing trend is online training, either self-paced or led by an instructor. If the employers want the employees to feel that the training was relevant and a valuable experience and to feel good about the instructor, the topic, the material, its presentation, and the venue, then it is the management’s responsibility to measure what the trainees have learned and how this training has benefited the company’s bottom line and employees’ job satisfaction. Assessment of every training programme is critical to
determine the effectiveness for employees, and benefits to the company. Successful companies maintain up-todate listing of each employee’s qualifications, experience, past training and future training needs. The results will depend on relevancy and especially how employees apply the training in their duties. When properly planned and implemented, on-thejob training will not cost the company but will add to the bottom line! NB: Photos used for representational purpose only. AutoPartsAsia | SEPTEMBER 2015 | 57
INSIGHTS
Hydrogen-Powered Selfdriven Vehicles On The Anvil
are in place to reduce dependence on fossil fuels. Consumers are weary of constantly changing price for petroleum-based fuels due to unpredictable factors such as tariffs, taxes and political situation in oil-producing countries. Alternatives are being marketed, but their acceptance is too limited to help reduce dependence on fossil fuels. The alternatives in the market are:-
By Louis P Rumao
F
or more than a century, automotive industry was on an evolutionary path. Engineers were slowly improving engine and ergonomics. Initially they powered vehicles and then improved safety and added comforts for occupants. Engines continued to use fossil fuel (diesel and gasoline), while becoming more efficient and reliable. But that was then! 58 | AutoPartsAsia | SEPTEMBER 2015
Now the industry is on the verge of unleashing changes that will eliminate both fossil fuel and human driver! Fossil fuels are nonrenewable resources. These fuels, when burnt in engines, emit greenhouse gases (GHGs), mostly carbon dioxide (CO2) that contributes to global climate change. Therefore, plans and regulations
• Battery electric vehicles run on an electric motor and battery. This offers them increased efficiency and is emissions-free if the electricity comes from renewable sources, such as solar and wind. Battery electric vehicles can use existing infrastructure to recharge, but must be plugged- in for extended periods of time, and have insufficient driving range on a charge. The cost of replacement batteries is also very high.
• Plug-in hybrid electric vehicles are similar to battery electric vehicles, but also have a conventional gasoline or diesel engine. This allows them to drive short distances on electricityonly, switching to liquid fuelled engine for longer trips. • Hybrids have conventional engines and an electric motor and battery, but can’t be plugged-in. These nonplug-in hybrids derive all their power from gasoline and diesel, and are not considered electric vehicles.
Fuel Cell Vehicles There is a widespread belief that hydrogen fuel cell vehicles (FCEV’s) may be the future! Very simply stated, a fuel cell converts hydrogen and oxygen into water, and in the process produces electricity, which powers the vehicle. A majority of
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INSIGHTS though they never plan to use them.
North Americans would love to get their vehicles off gasoline or diesel, but they aren’t eager to turn to electric vehicles, indicating that constantly having to charge a batteryelectric vehicle is a pain and unhappy with the limited driving range. The appetite for hydrogenpowered vehicles is strong, and 80 percent of people agree that they would like the government to provide more support for the technology. Two main hurdles stand in the way of mass production and widespread consumer adoption of hydrogen `fuel-cell’ vehicles: the still high cost of producing fuel cells; and the lack of hydrogen refueling network. Other hurdles are poor durability of the fuel-cell stacks and shorter driving range, which are expected to be addressed as technology advances. There are a couple of FCEV’s currently available in North America – Toyota 2016 Mirai and Hyundai 2015 Tucson, which is claimed as the first massproduced fuel cell vehicle and the first cross-over utility vehicle (CUV). Being new to the market, and high purchase cost, these two vehicles are not for outright sale, but only for lease. Right now, 95 percent of the hydrogen available in the US is either extracted from fossil fuels or made using electrolytic processes powered by fossil fuels, thus negating 60 | AutoPartsAsia | SEPTEMBER 2015
While most automakers are approaching autonomous cars incrementally, Google’s plan to remove driver from the equation totally will have dramatic effect on the industry. Google has stated that its goal is “a vehicle that could shoulder the entire burden of driving. Vehicles that can take anyone from point A to point B at the push of a button.” any real emissions savings or reduction in fossil-fuel usage. Even then, taking into consideration the emissions created during the production of hydrogen fuel, it is claimed that driving a Hyundai Tucson FCEV for example, will result in 40 per cent less greenhouse gas emissions than driving a comparable gasoline-powered vehicle on a well-to-wheel basis. A FCEV reportedly will emit fewer air contaminants that result in smog and acid rain, demonstrating a direct benefit to air quality in densely populated cities. Only if renewable energy sources can be harnessed to provide the energy to generate hydrogen can the dream of a truly clean hydrogen fuel be realized. The hydrogen refueling infrastructure also must be developed to support the expansion of FCEV usage. All automotive manufacturers, governments, the hydrogen industry, and citizens need to join in this initiative to make FCEV’s a practical reality. The cost of building a hydrogen infrastructure, comparable to the current petrol and diesel supply, that will allow a significant number
of hydrogen cars, could be as high as one trillion dollars. The time to construct the infrastructure, as long as four decades! The cost of the FCEV cars also is high. With platinum as the most widely used catalyst in the fuel cells, the price of a single fuel cell vehicle is currently more than $50,000. Other catalysts are being developed which will probably be less expensive than platinum, but nobody knows how soon they’ll be available for large-scale use.
Driverless Cars There is a new automaker in the world – Google Auto, LLC - formed in 2011, with a different vision – no driver needed! It is registered with national and international organisations as a passenger vehicle manufacturer. In 2014 it was licensed as a car maker in California, and immediately afterwards it began to build 100 prototype self-driving electric cars from scratch, without steering wheels, accelerators or brake pedals. However, California officials balked at the absence of those essentials, so Google Auto agreed to add them,
Google’s self-driven cars have logged over 1 million miles and are currently out on the streets of Mountain View, California and Austin, Texas. Their testing fleet includes both modified Lexus SUVs and new prototype vehicles that are designed from the ground up to be fully self-driving. Google Auto has applied for the international vehicle identification number (VIN) codes that will identify each new self-driving car, just like any other production vehicle. Google has notified the US National Highway Traffic Safety Administration that these prototype cars are exempt from the majority of safety standards and crash testing requirements because they are low speed vehicles (LSVs) that can go no faster than 25 mph. Although Google’s ambition may be to go all way – from research to production, ultimately, it may partner with one of the world’s major car manufacturers for full-scale production and marketing. The fully autonomous technology may help reduce and even eliminate highway accidents. But it is to be seen, whether the public is ready to hand over full control of their vehicles to some new technology.
FOCUS
Benecke-Kaliko Makes Plush, Cosy, Eco-friendly Surface Materials For
Vehicle Interiors
Ground breaking ceremony at Changzhou
By Sharad Matade
T
he Hanover-based Benecke-Kaliko AG is part of the ContiTechGroup and a group company of Continental AG. Its core expertise is in the area of automotive interior trims. This new surface material looks and feels like leather. It is handtoolable, sewable, environmentfriendly and allergen-free. In the price-conscious Asian markets, where mileage and
performance are the key parameters to select a car, consumers are becoming choosy about its interior looks and comfort-level. Owing to the consumer preference for interior looks and the global automotive trend for light weight and environment-friendliness, OEMs are concentrating more on the interiors of vehicles. And to tap this opportunity, Benecke-Kaliko AG is creating more innovative solutions.
Benecke-Kaliko is a market leader in surface materials for automotive interiors, especially for instrument panels, door panels, pillar trims, floor consoles, seating systems and sun visors. The company develops and produces at seven locations in Germany, China, Mexico, Poland and Spain. In North America, South America, Asia and Europe, the AutoPartsAsia | SEPTEMBER 2015 | 61
FOCUS After all, interior surface materials are highly individualistic and must reflect the character of the OEM, the model and of the vehicle buyer too. This is one of our strengths, and we feel at home here
company has 16 international representations. It has the India sales office in Pune.
New Plant Benecke-Kaliko has been in the Chinese market for decades and the market accounts for a large share of its global turnover. The company is building its second plant in Changzhou, China, to produce environment-friendly, low emission and allergen-free automotive trim material `Acella Eco’. “The customer demand is high because we offer optimum solutions for their requirements. We are highly innovative and extremely reliable. We place great value on quality and develop tailor-made solutions. As we are in such great demand, we are boosting our presence in China with a new plant in Changzhou, close to our existing plant and many of our customers,” Dr Alexander Jockisch, Executive Director, Business Development and Marketing, Benecke-Kaliko AG, told AutoParts Asia. The company will invest €40 million in this plant, which will produce 10 million square meters of Acella Eco products 62 | AutoPartsAsia | SEPTEMBER 2015
a year and will cater to the Chinese market. The German company is continuing to expand both production and local skills in its decade-old plant in Zhangjiagang. “China is developing into a market that has significant influence on other markets. Reasons for this include the strictest interior emission requirements in the world, and the influence of Chinese customers on global interior design,” he said. The Zhangjiagang plant has production capacity of 10 million square meters annually. It produces Polyvinyl chloride (PVC) foam laminate, PVC-expanded leather and Thermoplastic polyolefin (TPO) compact foil and foam laminate. Even in price-sensitive markets, Benecke-Kaliko does not find it difficult to do business as price is overlooked for luxury. “With our broad portfolio ranging from luxury surface materials to materials for cost-conscious customers, we have the right solution for every requirement. The focus is on comfort as well as on the environment-friendly and healthy properties of our products,” Dr Jockisch said.
Asian Sensibility “Asia may have a different image from Europe in terms of pricing. But this is not reflected in reality. The important thing is to know what the customers
want and then to offer the right solutions, including added value. There are certainly more vehicles in the compact segments in Asia. We have to offer products which are different from those for vehicles in the luxury segment”, he said. For this reason, Benecke-Kaliko takes different customer wishes into account in the development stages of the surface materials and keeps a close eye on them. “After all, interior surface materials are highly individualistic and must reflect the character of the OEM, the model and of the vehicle buyer too. This is one of our strengths, and we feel at home here,” Dr Jockisch said. “Production of environment-friendly surface materials does not have to be cost-intensive if the customer needs are kept in mind right from the start,” he added. “Harmony in the interior plays an important role in all price segments. Within the context of fuel-saving and stricter emission limits, lightweight engineering is the latest trend. The lowest possible emission level and good air quality are important even in the interior,” Dr Jockisch said. Softness of the surface materials is also becoming very important. Benecke-Kaliko is seeing the trend towards individualisation – as in so many other areas of day-today life. “Besides all these factors, increased practicality is required, through anti-soiling
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FOCUS properties, better cleaning behaviour, or reduced scratch sensitivity,” he said.
Ecological Challenges Changes in the laws regarding emissions from the vehicle interior create new challenges,
Making standardised products need standardised raw materials. According to the Benecke-Kaliko executive, all the materials used by the company stand out on account of their environment-friendly and healthy features and most of the products can be certified to the `Eco-Tex Standard 100’, if required. All its products are free of carcinogenic, mutagenic, reprotoxic (CMR) substances. “We closely monitor the ever stricter environmental regulations all over the world. We can anticipate them and adapt our products and production methods accordingly from an early stage,” he said. Stricter Volatile organic compound (VOC) requirements and shift from lightweight surface solutions to ultra-lightweight solutions are likely to be introduced in the near-term, he added.
particularly in Asia. New regulations in China, Korea, and Japan, for example, lead to new requirements for surface materials inside vehicles. “We were able to help with establishing standard measuring methods for the Chinese vehicle market to test air quality; in the meantime these methods have proven themselves in Europe and in the US. Using the right method helps save time and cost over the entire development and supply chain processes,” Dr Jockisch said. The company has been developing low-odour and low-emission products for many decades, and has more than 30 years of experience in measuring pollutants in vehicles. 64 | AutoPartsAsia | SEPTEMBER 2015
The challenges for BeneckeKaliko include ever shorter development times, more and more models, an increasing number of variants, and their increased complexity, he said. More and more vehicles are being designed in such a way that they are popular with customers around the world. “This results in much more complex factors of cultural influences that have to be taken into account. This also affects design, which must have global appeal. And global availability is becoming increasingly important for our products. Technical requirements are also becoming more demanding”, he said. The larger markets are opening greater opportunities for Benecke-Kaliko. The ‘feel-good’ factor in the interior is becoming a very important consideration – for the vehicle buyer and thus for the manufacturers. “In future, functionalities will be integrated into the decorative surfaces. This presents a great opportunity for us. We started development work on this aspect very early,” Dr Jockisch said.
The main concern of the company, while developing surface materials for interior, is the optimum implementation of customer wishes, environmentfriendliness, and production of high-grade materials with consistent quality in all the plants. “We create progress for more value (the value of better interior) and are set up on a broad base ready for new markets and tasks,” he said.
For The Market About the financial and technical challenges for Benecke-Kaliko to develop products for economic vehicles, Dr Jockisch said, “We have the respective products in our portfolio. Here too it is important to understand what each customer values. Then a joint solution can be found. We are constantly expanding our global network of production and skills – in line with our philosophy, `In the market for the market’, he said. The company had announced that it would be focusing on meeting manufacturers’ and drivers’ specifications in truck and bus segments. “The general trends are basically the same as in passenger cars, although the emphasis is different. Lightweight engineering, comfort, low emissions, sturdiness, and scratch resistance are in demand here also. Do not forget that this segment is extremely price-sensitive,” Dr Jockisch said. Benecke-Kaliko has been active in India for many years and has been supplying its products to the Indian and foreign vehicle manufacturers. “Chintan Kanakia, our Pune-based country manager, and his team are important local contacts for our customers”. The company thinks the market volume in India is not large enough to have local production facilities. “But this will certainly change as the market volume increases,” Dr Jockisch said.
BRAND TRENDS APA Bureau
D
ESMA, the mechanical engineering enterprise based in Fridinger, Germany, is celebrating this year its 50th year of operations. The company, which started in 1965 with seven employees in an operating space of 200 sqm, has today over 500 employees who meet the requirements of the rubber and silicone processing industry in an area of around 30,000 sqm at five production locations in the most important economic regions of the world. With an international sales and service network, DESMA is close to its customers all over the world.
DESMA Celebrates 50 Years Of Shaping Ideas For Future
DESMA produces turnkey, resourcefriendly system solutions for the production of technical rubber and silicone-moulded parts. ``With innovative technologies and comprehensive service we meet the needs of the elastomeric processing industry. DESMA machines manufacture products used in automobiles, ships, power plants and medical appliances”, Managing Director, Martin Schürmann, said. With over 70 years’ experience in sophisticated machine and mould engineering, DESMA provides premium solutions for elastomeric processing. ``To this end, we finetune the DESMA injection moulding machines, moulds and automation systems and create competitive advantages for our customers’’, he said. The company develops technically perfect system solutions for the safe, efficient and profitable production of rubber and silicone parts. It has the capability to offer everything from one source, and every DESMA machine has the complete know-how, from research and development, consulting and project engineering to design and production.
DESMA India factory in Ahmadabad was started in 1996. State-of-art vertical rubber injection moulding machines are produced here as ALPHA and SIGMA series. The anniversary celebrations of DESMA are guided by the motto: ‘50 years shaping ideas for your future’. “It will accompany us through this year of anniversary and simultaneously provide us with the courage, confidence and inspiration to add many more chapters to a manifold corporate history”, Schrumann said. The company marked its 50th anniversary at the recently-held International Rubber Conference (IRCand DKT) in Nuremberg by showcasing two DESMA injection moulding machines of the S3 series presenting new inspiring and convincing solutions which will increase the efficiency of elastomeric processing companies. These companies will be able to achieve above-average growth in terms of quality and quantity by using the service and technology of DESMA. More than 550 guests attended the formal 50th anniversary celebrations of DESMA in Fridingen. The guests included the Finance and Economy Minister of the State of Baden Württemberg, DrNils Schmid, the District Administrator of Tuttlingen, Stefan Bär, the Mayor of Fridinger, Stefan Waizenegger, the members
of the Federal and State Parliament, Volker Kauder and Guido Wolf, and the representatives of the holding company, Salzgitter AG, represented by Professor Fuhrmann, Kieckbusch and Professor Niemeyer. There were also guests from business, politics and academia, customers, suppliers, retirees and partners in addition to the staff and delegations of the four subsidiaries from 16 countries that accompanied DESMA during these 50 years and assisted its progress. The Mayor of Fridinger, Waizenegger, then named the yet unnamed access road to DESMA as `WalterSchatz-Straße’, after the founding director and first Managing Director of DESMA who died last year. His daughter, Regina Verheyen, was also present. There was a reunion with five of the very first employees who took the stage to receive symbolically the DESMA anniversary ribbon `Chronicle 1965-2015’, on behalf of all the employees, from the Managing Directors Schürmann and Zebedin. On behalf of the employees of DESMAN, Schürmann thanked all business partners for the many years of loyalty and good co-operation. He told the customers of the company, “We are particularly proud of you, because over the years we were able to play our part in ensuring that your growth with us was above the industry average.” AutoPartsAsia | SEPTEMBER 2015 | 65
BRAND TRENDS
IP Rings Wears Innovation Hat APA Bureau
I
P Rings Limited (IPRL) a member of the Amalgamations Group, is stepping into its 25th year of operations with an aptly coined slogan ‘Innovate Today.’ Promoted by India Pistons Ltd, Simpson & Company Limited, Tractor and Farm Equipment Ltd and Amalgamations Private Ltd in technical and financial collaboration with Nippon Piston Ring
Co Ltd of Japan, the company has been focusing on innovation since inception in 1991. Imbibing the culture from its principles and aligning its focus with its collaborator who is a world leader in the manufacture of piston rings and other powertrain components, IPRL has been pioneering in new technologies, especially in coatings at the critical moment when the Indian automotive industry was expanding and was looking for new technologies. It may be recalled that IPRL pioneered the concept of steel piston ring in India, which has since been accepted by OEMs in the country. The company’s core strength lies in surface engineering, plasma spraying, chromium plating, gas nitriding and salt bath nitriding. It has been supplying rings to passenger cars, utility and commercial vehicle manufacturers. First to provide the improved ‘Nifflex” technology in the late 90’s followed by 3 pc Oil Rings (Nifflex– S and H type design), it is the first to introduce ASP (All Steel Pack) designs for the two wheeler industry (in 2012), which helped in reducing friction thereby improving performance. 66 | AutoPartsAsia | SEPTEMBER 2015
According to the Managing Director of the company, Ram Venkataramani, IPRL along with India Pistons Limited has been the first component maker in the country to establish accredited test beds for testing and validation of engines. It has specialised Technical Centres in their companies where several internal ideas and concepts are validated and specific solutions provided to their customers. There have been instances where they have tapped into the vast engineering knowledge available with India Pistons Ltd and Simpsons to provide solutions to customers not necessarily related to their scope of supply alone. This is an example of one its core beliefs – ‘relationship and solutions beyond business.’ Currently the company has in its possession several technologies that will help OEMs meet the emission standards up to Euro 6. India is presently at BS IV (Euro 4 equivalent) and plans to improve it going to Euro VI by the turn of the decade. PVD Rings are generally applied on engines with higher output range starting from 90 kilowatts per litre and for engines with higher P Max – peak firing pressures - of 200 bars. IPRL introduced the concept of LFR (Low Friction Rings) to the Indian Market since 2013.Several car makers like MSIL, HMI and Ford India are successfully using this product. The innovation culture has progressed in the cold forging division as it introduced orbital cold forging in 2001, which helped the company to provide ‘miniaturisation’ and ‘near net shape’ solutions to its customers to meet light weight targets and improved NVH. The company is working on the lines of the ‘Make in India’ campaign, by making world class products, for the global and Indian Market, across Industries, he mentioned. One of its latest innovations in Piston Rings has been, “the HPPD (High Performance Physical Vapour
Deposition) and HDPD (Heavy Duty Physical Vapour Deposition), a feature yet to be mastered even by some of the global majors. Aimed at bringing the stringent US EPA – CAFÉ norms for fuel efficiency with higher performance, this will propel IPRL to the best in class environment enhancement partners for the auto industry and a force to reckon with by any standards on the global platform,” he said. Venkataramani who is an engineer himself and his team looks highly charged when their engineering minds are triggered to innovate – the great Indian ‘jugaad’ mindset, but with a mind towards global technologies.
SaaS in Manufacturing “Innovation is not only a way of life here, but also an enterprise. IPRL has been doing research into ‘Frugal Engineering’ of their Manufacturing space by bringing the SaaS model into the production shop-floor with their in-house developed ‘maQx’ program – a black box approach to managing operations in a highly sophisticated, IT-enabled environment which translates the customers’ requirements into each and every step of the production process while maximising equipment efficiency,” he indicated. The company has plans to install this in other companies of the Amalgamations Group before offering it to other companies in the manufacturing space.
GLEANINGS - India
Royal Enfield Arm To Sell Bullet In North America APA Bureau
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oyal Enfield, the fastest growing motorcycle company in the world, has announced its first wholly- owned subsidiary in North America. This is in line with the international focus of Royal Enfield, now a division of Eicher Motors Limited, on expanding to the global midsized motorcycle segment (250-750cc), with North America as a priority market. It has been exporting motorcycles to North America for 15 years through an independent distributor. Royal Enfield is the oldest motorcycle company in continuous production, with roots dating back to 1901 in Redditch, England. Its current product line-up in North America includes the iconic Bullet 500cc, Classic 500cc and the Continental GT 535cc cafe racer ranging from USD 4,995 to USD5,995. Manufacturing will continue to be in Chennai, India,
where Royal Enfield has been operating since 1955. Global headquarters will continue to be in Gurgaon, Haryana, India. Royal Enfield North America is based in Milwaukee, Wisconsin. The leadership team is led by Rod Copes, President, who will be responsible for marketing, communications, sales, warranty, service, dealership development and finance across the US and Canada. Rudratej Singh, President, Royal Enfield, said, “Motorcycles and the riding culture is robust in North America and it is certainly a growth market for us. A whollyowned subsidiary company in the region allows us to be closer to our customers and enhance their product and ownership experience, with a wider footprint and robust aftersales service network. We are confident that with our current and future product line we will re-invigorate the mid-sized motorcycle segment in the US with motorcycles that are holistic in their approach and are great fun to ride, both in the cities and on back country roads. “Royal Enfield has been growing at over 50 percent year-on-year for the last five years. With a proven business
model, today we are one of the largest mid-size motorcycle manufacturers in the world. With our increased efficiencies and scale of manufacturing, we are strategically positioned to make effective business inroads into international markets, including the US,” he said. Siddhartha Lal, CEO, Royal Enfield, said, “Our motorcycles are inspired by the classic bikes throughout motorcycling history, in form and in simplicity; and they capture the feeling of freedom, fun and responsiveness that riders were trying to achieve then, and brings it into the modern context. Royal Enfields are possibly the most engaging mid-size motorcycles out there. We use traditional craftsmanship and modern technology as a means to achieve the perfect balance between the rider, the machine and the terrain.” Rod Copes, President Royal Enfield North America said, “In a post-performance era where American riders are looking for machines that are easy to own and maintain, Royal Enfield offers modern classic motorcycles, with timeless appeal. Royal Enfield’s first fully branded retail store in the US will soon be launched in Milwaukee that will retail its entire product line-up of motorcycles and gear. Over the next 18 months we plan to launch several such stores in key metropolitan areas across the US. We are also focusing on building a strong independent dealer network that will maximise our brand awareness and sales”. AutoPartsAsia | SEPTEMBER 2015 | 67
GLEANINGS - International
Nissan Pedestrian Alert System For eVADER As a leading partner in the eVADER project - which took three years to complete - Nissan drew on its EV expertise to integrate the range of technologies provided by itself and other consortium members into the demonstration vehicle, and worked to ensure that the sounds created were clearly audible. The sound created not only had to be directionally beamed at targeted pedestrians, it also had to keep annoyance levels to a minimum. Siren-like noises were ruled out at an early stage, as they were found to be irritating, loud and, in some cases, emotionally upsetting to other road users. The final version of the system features a camera built into the
APA Bureau
N
issan has taken a leading role in the European Commission-led project, eVADER, to create a pedestrian alert system for electric vehicles (EVs). In partnership with 10 other consortium members, Nissan has collaborated in the creation of a potential next generation pedestrian alert technology which produces effective and targetable audible cues to alert pedestrians and other vulnerable road users to the presence of a nearby EV, with minimal impact on noise pollution levels. Pedestrian alert technology is a hot topic, as growing sales of EVs have led to discussions over the pros and cons of quiet EVs. The low sound levels have been heralded as a strong benefit, as they could contribute to a drastic reduction in noise pollution. As one of the leading manufacturers in the EV market, and developer of the Approaching Vehicle Sound for Pedestrians (VSP), fitted as standard equipment to all Nissan EVs, Nissan
68 | AutoPartsAsia | SEPTEMBER 2015
has made this area of research a priority. David Quinn, Nissan’s e-VADER Project Leader said: “Pedestrian safety is of utmost importance to Nissan, which is why we have a pedestrian alert installed in our EVs as a preventative measure. As leaders in the EV market, we were keen to use our considerable experience to examine possible systems for future development in this field. Our objective has been to find an optimum balance between ensuring the cars are detectable, whilst retaining the reduction in noise pollution, which is one of the great benefits that our EVs offer.”
windscreen, which is programmed to recognise pedestrians, cyclists and other road users. On detection of a road user, six loudspeakers directionally beam sound at the target to alert them of the presence of the EV. The sound is up to five decibels lower than the sound of a conventional petrol or diesel engine vehicle.
Nissan has played a pioneering role in bringing EV technology to the mass-market. In 2010, the introduction of the Nissan LEAF – the first mass-market, all-electric EV launched globally – revolutionised the motoring world. It still remains the best-selling EV.
Nissan built this system into a Nissan LEAF for real-life trials, and the vehicle was used to showcase the completed alert system at a concluding event in Barcelona in December 2014, where it was wellreceived by the visually-impaired community.
GLEANINGS - International APA Bureau
T
he Historic Vehicle Association (HVA) joined automotive and 1915 World’s Fair enthusiasts recently to celebrate the 100 years of the Panama Pacific International Exposition (PPIE) and a century of road travel across America at the Palace of Fine Arts in San Francisco, the US. The occasion was made special by the arrival of a historic 1915 Ford Model T, after it travelled more than 3,500 miles, recreating the amazing cross-country journey that Edsel Ford, the only son of Henry Ford, took 100 years ago. The purpose of the trip was to elevate national awareness about the importance of America’s automotive heritage and the role of Ford Model T in shaping it. The HVA road trip was both a celebration and an important heritage fieldwork regarding the birth of a century of American road trips.
1915 Ford Model T Makes Centenary Trip
system and those early pioneers who experienced cross-country travel by automobile,” Mark Gessler, President of the Historic Vehicle Association, said. “The excitement and enthusiasm of all the people we met as we travelled through small cities and towns was a wonderful experience. The smiles, the memories and the Model T stories we heard made this trip very special,” he said.
HVA’s `Road Trip Century Celebration’ was launched on July 17, 2015 with a HVA driving team using a refurbished 1915 Ford Model T , similar to the one Edsel Ford drove, following his epic 1915 journey from Detroit to San Francisco. HVA collaborated with the Antique Automobile Club of American Library, the California Historical Society and PPIE100, to plan and recapture this amazing historical journey. In the summer of 1915, 21-yearold Edsel Ford and six boyhood friends were among the thousands of Americans that took to the road to visit the west and the world’s fair exposition in San Francisco. At the
PPIE, the Ford Motor Company had one of the most popular exhibits at the fair -- a working Model T assembly line that produced about 18 cars each afternoon and more than 4,000 Model Ts during the course of the World’s Fair. The whereabouts of the original Edsel Ford Model T is not known. The PPIE was widely promoted and provided the impetus for many automobile owners to make adventurous cross country tours using early `National Highway’ systems from east to west. “The trip has provided the HVA team with a greater appreciation of the development of our national road
Throughout the journey the HVA met with historians, heritage specialists, preservationists and academic experts to help trace the origins of the American road trip. Edsel Ford’s trip was extremely well documented with nearly 200 photographs and daily journal entries. The HVA considers it one of the most well documented early American road trips done purely for pleasure. He travelled through developing roads that were deemed `drivable’ at the time. And, for the first time, one could consider a crosscountry trip in an automobile. “Edsel Ford’s cross-country journey is symbolic of how the PPIE brought out the amazing spirit, enthusiasm and innovation of so many people,” Phil Ginsburg, General Manager of the San Francisco Recreation and Parks Department, which is overseeing the City’s PPIE100 celebration, said. AutoPartsAsia | SEPTEMBER 2015 | 69
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GLEANINGS - International
APA Bureau
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he Chassis & Safety and Tyre Divisions of the international automotive supplier and tyre manufacturer Continental AG are partnering with the Global New Car Assessment Programme (NCAP) in the ‘Stop the Crash’ information campaign. It is an initiative of Global NCAP, the London-based umbrella body of the worldwide NCAP consumer organisations, for new car safety testing. The Global NCAP ‘Stop the Crash’ campaign will be officially launched on November 18, 2015 with a driving demonstration to coincide with the 2nd Global High-Level Conference on Road Safety in Brazil. The motto
Continental Joins Global NCAP for ‘Stop the Crash’ campaign of this meeting of world political leaders, fleet managers and the media representatives will be ‘Time for Results’. ANCAP, Asean NCAP, China NCAP, Euro NCAP, Japan NCAP, Korea NCAP, Latin NCAP and US NCAP and the Insurance Institute for Highway Safety (IIHS), define the standards that vehicles must meet to be awarded top safety rating of five stars. In Europe, crash avoidance and mitigation systems such as adult and child occupant protection systems, pedestrian protection systems and assistance systems such as Electronic Stability Control (ESC), Autonomous Emergency Braking Systems (AEBS), and Adaptive Cruise Control (ACC) systems are a basic requirement for achieving this rating. “We have been pursuing our longterm strategy ‘Vision Zero’ for many years. With innovations and by continuously refining and improving our components and systems, we are playing a leading part in the drive to improve road safety. We see ‘Vision Zero’ as comprising three successive
stages: of paramount importance is the avoidance of any traffic fatalities, then reducing the number of injuries to zero. Are there no more accidents at all, we have fulfilled our ‘Vision Zero’,” Frank Jourdan, Member of the Executive Board of Continental AG and President of the Chassis & Safety Division, said. “Since seatbelts, ESC, tyre pressure monitoring systems (TPMS) and AEBS for commercial vehicles became mandatory, the total number of road traffic fatalities, injuries and accidents has declined significantly. That said, the annual toll of more than 1.2 million people killed on the world’s roads every year is still shockingly high and not acceptable. We must make a concerted effort to reduce these numbers.” Continental expects the twice-yearly ‘Stop the Crash’ demonstration events in countries like China, India, Malaysia, and Mexico, to raise awareness of the benefits of state-ofthe-art safety systems, and of tyrerelated topics. The aim is to achieve a significant improvement in global road safety and steady reductions in
the number of traffic fatalities, injuries, and accidents. David Ward, General Secretary from Global NCAP, said that, “We are delighted to be partnering with Continental in this new initiative to promote crash avoidance systems and tyre safety. To achieve the United Nation’s target to cut by half road fatalities by 2020 we need to promote strongly the fitment of ESC, AEBS, and ABS in motorcycles especially in the rapidly motorising countries of Asia and Latin America”. “Tyres are the sole point of contact between the vehicle and the road. All forces transmitted to the road are put down via a footprint no bigger than the size of a postcard. In a critical situation, it is the tyre that determines whether the vehicle can stop in time, or whether it stays safely on course through a corner. This is why we want to inform as many drivers as possible, all over the world, about the safety benefits of using high-tech tyres inflated to the correct pressure and with adequate tread depth,” Nikolai Setzer, Member of the Executive Board of Continental AG and President of the Tyre Division, said. AutoPartsAsia | SEPTEMBER 2015 | 71
GLEANINGS - International
Toyota Proves Hybrids Have Staying Power APA Bureau
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oyota Motor Corporation Chairman Takeshi Uchiyamada likes to tell the story of how his team couldn’t get the first Prius prototype to move for 49 days. According to him, “We had no idea what was wrong, so we worked late every night trying to figure it out. We finally got it to move around Christmas time, but it only went 500 meters!” That was back in 1995, when hybrid cars were unproven, experimental machines with a very unclear future. Fast-forward twenty years, and Toyota Motor Corporation is proud to announce that it has now sold over eight million hybrid vehicles (including plug-in hybrids), with just 10 months between this and the last million-unit milestone. It can be hard to get a sense of what the number eight million might mean for the environment and for hybrid owners. For a bit of context, Toyota calculates that as of July 31, its hybrid vehicles have resulted in approximately 58 million fewer tons of CO2 emissions than would have been emitted by gasoline-powered vehicles of similar size and driving performance. Toyota also
72 | AutoPartsAsia | SEPTEMBER 2015
GLEANINGS - International
TOYOTA HYBRID VEHICLE SALES
Europe Japan
North America Others
Global
Cumulative
1997
--
300
--
--
300
300
1998
--
17,600
--
--
17,600
18,000
1999
--
15,200
--
--
15,200
33,200
2000
700
12,500
5,800
--
19,000
52,300
2001
300
18,500
16,000
200
36,900
89,200
2002
800
20,000
20,300
200
41,300
130,500
2003
900
27,200
24,900
400
53,300
183,800
2004
8,100
68,700
55,900
1,900
134,700
318,500
2005
23,400 58,500
150,000
3,100
234,900
553,500
2006
36,000 72,400
197,600
6,500
312,500
866,000
2007
49,000 82,000
287,800
10,700
429,400
1,295,400
2008
57,800 104,400
255,000
12,600
429,700
1,725,100
2009
54,700 251,100
205,300
19,000
530,100
2,255,200
2010
70,200 392,200
195,900
31,900
690,200
2,945,400
2011
82,800 316,400
185,100
44,700
629,000
3,574,400
2012
106,900 678,000
344,700
89,500
1,219,100
4,793,500
2013
152,900 679,100
358,200
89,000
1,279,200
6,072,700
2014
171,800 684,200
323,600
86,500
1,266,000
7,338,700
Jan-Jul 2015
111,800 389,300
163,200
45,300
709,600
8,048,400
Total
930,100 3,887,800 2,789,100
441,400
estimates that its hybrid vehicles have saved approximately 22 million kiloliters of gasoline compared to the quantity used by gasolinepowered vehicles of similar size. In the Indian context 58 million fewer tons of CO2 emissions is about 3.55 percent of total CO2 emissions in India. In addition, 22 million kiloliters of gasoline saved compared to the quantity used by gasoline-
powered vehicles of similar size, which is around 13.3 percent of India’s annual Oil import. The message is clear: having found homes in driveways around the world, hybrids have staying power. Since the launch of the Prius in 1997, Toyota has been gradually adding hybrid models throughout its range, from the compact Yaris Hybrid to the recently announced RAV4 Hybrid. As of this month, Toyota sold 30 hybrid passenger car models and one plug-in hybrid model in more than 90 markets. Over just the past year, Toyota has made several new hybrid models available, including the Esquire Hybrid (Japan only), the Lexus RC300h, and the recently launched Sienta Hybrid. Other new hybrid models such as the Corolla Hybrid and Levin Hybrid (China only) and RAV4 Hybrid are just around the corner. This ongoing roll-out will continue, with new hybrid models being added to Toyota’s range and sold in more markets. In India, Toyota Kirloskar Motor (TKM) launched the first locally manufactured the Camry Hybrid in August 2013. Globally India is the 9th country and/or region to manufacture Toyota hybrid vehicles. After the launch of the all new Camry Hybrid in May 2015, its popularity has increased. At present Camry Hybrid constitutes more than 80 percent of the total Camry sales in India (also sold with gasoline engine), testimony to its growing acceptance in India.
Lear Acquires IP From Autonet Mobile APA Bureau
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he Michigan-based Lear Corporation, a leading global supplier of automotive seating and electrical distribution systems, has acquired intellectual property and technology from Autonet Mobile, a California- based developer of software and devices for automotive applications. As part of the acquisition, Lear has hired key members of Autonet Mobile’s software and product development team. Founded in 2005, Autonet Mobile’s technology directly connects onboard vehicle systems with cloudbased applications using proprietary
data exchange capabilities via cellular networks. The acquired intellectual property and technology will complement Lear’s industry-leading wireless capabilities and provide growth opportunities for its electrical business. “Combined with Lear’s expertise in embedded vehicle electrical distribution systems and related electronics capabilities, Autonet Mobile’s technology will help connect gateway modules with an array of features including over-theair software update capabilities’’, a company release has said. “The acquisition of Autonet Mobile’s
technology is consistent with our strategy of adding software capabilities that will complement our electrical distribution business,” Matt Simoncini, Lear’s president and chief executive officer, said. “We continue to see excellent growth opportunities for our electrical business as consumers demand greater connectivity features for their vehicles.” Autonet Mobile will continue to operate and offer products to the automotive aftermarket through a technology licence from Lear. Financial terms of the transaction were not disclosed. AutoPartsAsia | SEPTEMBER 2015 | 73
GLEANINGS - International
Proterra Named To Inc. 500 List
APA Bureau
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of a West Coast manufacturing line and $55 million in strategic financing. Proterra’s firm orders are now 110 units, with 323 options contracted, for a total of 433.
This award speaks to the mounting demand for `Proterra Catalyst’ zeroemission electric buses. Last year the company announced national expansion plans that included doubling production with the addition
“We are honoured to be named to the Inc. 500 list of fastest growing companies,” Ryan Popple, CEO of Proterra, said. “To be recognised by Inc. underscores the momentum we are seeing for zero-emission mass transit. With public transit agencies’ coast-to-coast driving demand for electric vehicles, our focus during this next phase of growth is to get our new California manufacturing line up and running to service this industry’s increasing appetite for Proterra zeroemission electric buses.”
roterra Inc., the leading provider of zero-emission battery-electric buses, has been named to the 2015 Inc. 500 list, an exclusive ranking of the fastest-growing private companies in the US. Ranked number 425, Proterra has been recognised for a 1,119 percent growth in the last three years, adding 108 jobs, and establishing itself as North America’s electric bus leader with over 70 percent of the US battery-electric transit bus market.
The 2015 Inc. 500|5000 ranks companies according to percentage revenue growth from 2011 to 2014. To qualify, companies must have been founded and generated revenue by March 31, 2011, and have revenue no less than $2 million in 2014. Additionally, companies have to be US-based, privately held, for profit, and independent. 2015 Inc. 500|5000 winners will be honoured at the Annual Inc. 500|5000 Conference and Awards Ceremony during October 21-23, 2015 in Orlando, Florida. Proterra has sold over 100 vehicles to 14 different transit agencies throughout North America. Proterra’s configurable EV platform, battery and charging options make its buses well suited for a wide range of transit and campus routes.
Handte Oil Expert Collector Removes Ultra-Fine Mists, Fumes APA Bureau
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he new Handte Oil Expert oil mist collector from Camfil Air Pollution Control (APC) operates ‘24/7’ for greater productivity. It needs very low maintenance and has long service life. It is designed to withstand the most challenging applications that utilise lubricant oils to cool machining operations, meeting even the stringent specifications of the automotive industry. Handte Oil Expert offers separation efficiencies up to 99.97 percent on 0.3 micron and larger particles, reliably handling ultra-fine, hard-to-
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capture oil mist and fume particles. It has a pre-filter and fine filter. They are the heart of the Handte Oil Expert collector. Media separators in the CoaPacks allow optimum airflow through the filters while providing maximum usable media area within a compact space. This design combines high efficiency separation performance with self-cleaning capability via drainage of the separated cooling lubricant. Benefits include reduced energy consumption, extended filter life of three years on average, and enhanced protection of the optional
HEPA final filter, which may be used for removal of ultra-fine mists and/or clean air recirculation. The compact but sturdy modular design allows optimum installation flexibility. Four basic modules with different air flows may be combined in a large central system. Processes served include turning, drilling, milling, roughing, grinding, broaching, honing, rolling, deepdrawing and pressing. Units can be delivered ready for “plug and play” without any additional assembly required at the installation site.
Em
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Asian Business Media LLP 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: info@abm.net.in Editorial Office: Asian Business Media LLP, 39/3993- B7, Ground Floor, Vantage Point,V.R.M. Road, Ravipuram, Kochi - 682 016. INDIA Chennai: 22/37, 1st Floor, Karpaga Vinayagar Koil Street, Alandur, Chennai - 600 016 INDIA +91 9940172323 deva@abm.net.in www.autopartsasia.in US Correspondent: Dr Louis P Rumao, Email: louis.rumao@yahoo.com | European Representative: John Stone Email: john.stone@sapphire-media.co.uk | Australia: Jacob Cherian, E-mail: ausker@auskergroup.com.au | Japan: Shinichi Kato, Email:shinichi.kato@rubberstation.com | Sri Lanka: P P Perera, Email: ppperera1946@gmail.com | South East Asia: A. Divakaran A.D.Nair, Email: aaps_avico@yahoo.com | Thailand: Ms Somruetai Patana-anek (Mott) Email: somruetai.patana-anek@busgum.com
Publishers of: TRACKING THE TYRE WORLD
KERALA�S OWN BUSINESS MAGAZINE
GLEANINGS - International
Katzkin Leather To Sell Gentherm Systems has ensured optimized seat comfort for the aftermarket industry. The two global leaders will be pioneering new comfort opportunities for consumers through Katzkin aftermarket channels.
APA Bureau
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n exclusive agreement between custom automotive leather leader Katzkin and the global market leader and developer of innovative thermal management technologies, Gentherm,
The agreement includes the distribution of Gentherm’s ‘Degreez’ seat heating and cooling system – a onebutton technological application that delivers a thermal comfort feature for cars, trucks and SUVs. Katzkin is the official and exclusive distributor for Gentherm’s individual heating and cooling systems within the aftermarket channel. Its more than 2,500 installation ‘restylers’ throughout the US will have the ability to include Gentherm’s breakthrough (Climate Control Seating (CCS) technology.
Gentherm’s President and CEO Daniel R. Coker said, “We’re delighted to be working with an industry leader like Katzkin to bring our thermal electric-based heating/cooling technology to the aftermarket.” Katzkin will deliver Degreez within the same 24-48 hour installation process timeframe (from order process to vehicle delivery) for a vehicle’s leather interior transformation. According to Tim Clyde, CEO of Katzkin, Gentherm provided their expertise in thermal comfort through the developmental phases in creating “Degreez,” which uses Gentherm CCS technology). Katzkin plans to showcase the technology during the upcoming SEMA show in Las Vegas this November. “Gentherm CCCS is a perfect addition when upgrading an interior,” he said.
“We are a company known for innovations in designs that provide affordable luxury – and providing our customers with the true comfort of heating and cooling seats further extends the luxury associated with an upgrade to leather.” “We strive to always provide our customers with the best of the best, from concept to design to comfort, and the addition of the best heating and cooling applications, coupled in one system, provides consumers with an easy, affordable and advanced ability to further enjoy their driving experience,” Clyde said. The ‘Degreez’ state-of-theart technology combines with Katzkin’s perforated leather, providing three levels of heating and cooling -- all with one switch, for all season comfort.
Kongsberg Automotive wins seat comfort business for premium vehicle APA Bureau
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ongsberg Automotive (KA) has been awarded a seven year agreement with a European premium automaker for the supply of seat comfort systems to a mid-size/large luxury SUV. The contract is worth an estimated EUR 15.8 million
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(NOK 145 million) over its lifetime, and production is scheduled to start in the third quarter of 2016 from KA’s facility in Pruszkow, Poland. The vehicle that KA will supply to combines offroad ability and luxury. KA will supply comfort systems including lumbar support
systems for the front seats and seat heat systems for all three seat rows. “Providing seat comfort solutions to the premium seat and car makers in a growing segment of the automotive industry is exactly what we want to achieve, and this is a great win for us. Our leading
seat comfort technology and experience, coupled with our strong market orientation and global footprint provide a solid value proposition to customers”, said Hans Jørgen Mørland, VP Sales & Marketing for Kongsberg Automotive’s Interior business area.
GLEANINGS - International
Europcar Adds Abarth 500 To Fleet APA Bureau
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uropcar, the leader in car hire services in Europe, has added the sporting Abarth 500 hatchback to its growing fleet. Adding a touch of high performance to the esteemed Fiat 500l, the Abarth injects that little extra bite into a weekend get-away, while maintaining the style, handling and performance which make the original such a favourite amongst city-breakers. The model comes with a punchy 140hp 1.4-litre petrol engine, providing extra zip to a spin in the sunshine, and a host of safety and comfort features designed to help drivers stay cool behind the wheel. The classic retro 500 style is retained, ensuring that the ride continues to look as good as it feels.
Europcar is a leading mobility players in Europe. Present in over 140 countries, the Group provides customers with one of the largest vehicle rental networks through its own operators, franchisees and partnerships. Europcar Groupe operates worldwide its own brands Europcar and InterRent, its low-cost brand. “The Abarth 500 is certain to prove a very popular choice among customers,” Ken McCall, Managing Director, Europcar UK Group, said. “With that little bit of added performance, it perfectly complements our existing hatchback range, giving customers yet another option for their journey. “We know that when it comes to a sultry city-break or a spin down to the seaside, our customers want to drive the vehicle that best suits their needs. The Abarth provides yet another costeffective solution that, we hope, will be the cherry on top of a great many holidays across Britain this summer.”
ANSYS Offers Simulation Software To Students APA Bureau
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he Students around the world now have free access to the same leading engineering simulation solutions used by top organisations and professional engineers to create very advanced products, thanks to ANSYS. The company based in Pittsburgh, the US, has released ANSYS® Student as a free, introductory academic software package for students interested in learning the fundamentals of simulation. They can also get exposure to the state-ofthe-art ANSYS simulation workflows, pre-processing, post-processing and solver solutions. Students can tackle a broad scope of mechanics and fluids simulations, from fundamental tutorial level models to complex realworld scale models.
“At Cornell University, we use ANSYS software in a dozen courses in mechanical and aerospace engineering to expose students to finite element analysis and computational fluid dynamics simulations. Our students find it convenient to have the software on their computers to complete homework and projects,” Rajesh Bhaskaran, Swanson director of engineering at Cornell University, said. “The free ANSYS Student product is a truly exciting development since it puts state-of-the-art simulation technology at students’ fingertips everywhere. This will enable them to solve real-world engineering models while also gaining fundamental physical insights. This means
students will be much better prepared for the modern engineering workforce,” he said. In addition to the software, ANSYS is providing self-guided technical support, installation videos, FAQs and introductory tutorials through the ANSYS website. “We are proud to equip the nextgeneration engineers with ANSYS’ leading software technology, both inside and outside of the classroom,” Mark Hindsbo, ANSYS’ vice president of marketing, said. “Investing in STEM education is critical for the global economy and we at ANSYS are passionate about doing what we can to enable the students of today to be the best possible engineers of tomorrow.” AutoPartsAsia | SEPTEMBER 2015 | 77
CALENDAR 55th SIAM Annual Convention 2015 2nd September, 2015 Hotel Taj Palace, Sardar Patel Marg, Diplomatic Enclave, New Delhi, Society of Indian Automobile Manufacturers Tel: 91 11 24647810 -12 email: siam@siam.in www.siam.in 55th ACMA Annual Session & National Conference 3rd September, 2015 Hotel Taj Palace, Sardar Patel Marg, Diplomatic Enclave, New Delhi, Automotive Component Manufacturers Association of India Tel: +91 11 2616 0315 www.acma.in International Powertrains, Fuels & Lubricants Meeting 1-4, Sep 2015 Kyoto TERRSA, Japan SAE; F&L Conference Organizer Office-in-Charge 2015pfl@jsae.or.jp http://http://pfl2015.jp/ New Energy Vehicle Forum 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 China 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 15-17 Sep, 2015 Indianapolis Marriott Downtown Indiana, USA SAE; Darlene Waychoff darway@sae.org http://www.sae.org/events/obd/ North American International Powertrain Conference 16-18 Sep, 2015 Westin Chicago River North Hotel Chicago, USA SAE; Brandie Schandelmeier brandie@sae.org http://www.sae.org/events/naipc/ Gasoline Compression Ignition Engine Symposium 17-18 Sep, 2015 Grand Hotel Quisisana Capri, Italy SAE; Sherry McCaskey kramer@sae.org http://www.sae.org/events/gcie/ AeroTech Congress & Exhibition 22-24 Sep, 2015 Washington State Convention Center Seatle, USA SAE; Darlene Waychoff
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darway@sae.org http://www.sae.org/events/atc/ AeroTech Congress & Exhibition 29 Sep-1 Oct, 2015 Troy Marriott, Troy, Michigan, USA SAE; Melissa Jena mjena@sae.org/ www.sae.org/events/tmss/ Brake Colloquium & Exhibition - 33rd Annual 4-7 Oct, 2015 Charleston Area Convention Center Charleston, South Carolina, USA SAE: Melissa Jena mjena@sae.org https://www.sae.org/events/bce/ EMO Milano 2015 5-10 Oct, 2015 Fieramilano Exhibition Centre, Milan Alfredo Mariotti exhibition.director@emo-milan.com http://www.emo-milano.com/ 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 Automotive Testing Expo North America 20-22 Oct 2015 Suburban Collection Showplace Novi, Michigan, USA Renata Lengui renata.lengui@ukipme.com http://www.testing-expo.com/usa/ Transmission & Driveline Technologies Symposium 27-28 Oct, 2015 The Inn at Saint John’s, Plymouth, Michigan, USA SAE; Sherry McCaskey kramer@sae.org http://www.sae.org/events/ctf/ SEMA Show 3-6 Nov 2015 The Las Vegas Convention Center, Las Vegas, USA SEMA Show sales@sema.org http://www.semashow.com/ Active Safety Systems Symposium 4-5 Nov, 2015 Plymouth, Michigan, USA SAE; Marc LeDuc mleduc@sae.org http://www.sae.org/events/cass/ Energy Saving and Emission Reduction Forum 4-5 Nov, 2015 Crowne Plaza Century Park Shanghai Shanghai, China SAE; Sherry McCaskey
kramer@sae.org http://www.sae.org/events/eser/ Small Engine Technologies Conference 17-19 Nov, 2015 Osaka International Convention Centre Osaka, Japan Society of Automotive Engineers of Japan, Inc SETC2015office@jsae.or.jp http://www.setc-jsae.com/ Electric Powertrain Technologies Symposium 17 Nov, 2015 Maritim Hotels - Hotel Stuttgart Stuttgart, Germany SAE; Brandie Schandelmeier brandie@sae.org http://www.sae.org/events/epts/ Vehicle Electronics and Powertrain Technologies Forum, 3-4 Dec, 2015 Shanghai, China SAE; Sherry McCaskey kramer@sae.org http://www.sae.org/events/vept/ Automechanika Shanghai 2-5 Dec, 2015 National Exhibition & Convention Centre Shanghai, China Messe Frankfurt (HK) Ltd auto@hongkong.messefrankfurt.com www.automechanika.com UKIP Media & Events Ltd 19-21 Jan 2016 Korea International Exhibition Centre (KINTEX) Seol, Korea Renata Lengui renata.lengui@ukipme.com http://www.testing-expo.com/india/ Automechanika Middle East 26-28 Jan 2016 Jeddah Centre for Forums & Events Saudi Arabia Messe Frankfurt Middle East GmbH gazi.bilikozen@uas.messefrankfurt.com www.automechanikajeddah.com Hybrid and Vehicle Technologies Symposium 9-11 Feb 2016 Disneyland Hotel, Anaheim, California, USA’ SAE; Brandie Schandelmeier brandie@sae.org http://www.sae.org/events/hybridev/ UKIP Media & Events Ltd 20-22 Apr 2016 Chennai Trade Centre, Nandambakkam, Chennai, India Renata Lengui renata.lengui@ukipme.com http://www.testing-expokorea.com/english/ Automechanika Dubai 8 – 10 May 2016 Dubai International Convention & Exhibition Centre Dubai
Messe Frankfurt Middle East bilikozen@uae.messefrankfurt.com Telephone: +971 4 389 45 00 www.automechanikadubai.com Automechanika Birmingham 7 - 9 June 2016 NEC Birmingham, United Kingdom Forest Exhibitions Ltd info@uk.messefrankfurt.com Telephone: +44 (0) 1483 483 984 http://www.automechanika-birmingham.com
Advertiser’s Index A Al Saeedi
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ALC 53 Atlantic Lubricants
Back Inner
Auto Expo
21
AutoParts Asia
75
AutoShow Pune
46
D Desma 1
E EMO Milano
27
G Gold Seal
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I IMTMA 19 IP Rings
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IRSD 59
M Manatec 17 MSC Software
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O OMRON
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P Polymers & Tyre Asia
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R Roots Industries 11 Rubber Asia
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RubberWorld
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T Titan 15 AutoPartsAsia | SEPTEMBER 2015 | 79
AUTO LAUGH
Words of wisdom
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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
uying a car is like marriage. One has to pay a ‘heavy price’ for both. If you are lucky, you get a car that is not troublesome. Getting a good wife is as much important. For peace of mind both should be compatible with your personality. There are elements of emotion involved in acquiring both. I believe that buying a car and marrying a girl are decisions that can make or break one’s life.
that have a profound effect on me. Let me share some of these gems.
For the dream chasers, it is wise to have some moderation and have a clear aim in life. As we grow older, if we are conditioned by the words of wise men, we will become wiser. There will be less wrong decisions and more peace and happiness.
Remember, those who genuinely love you will never leave you. Even if there are 100 reasons to give up, they will find one reason to hold on to you.
If we listen to the sages we would realise that wearing a $300-watch or $30 -watch will serve the same purpose, show the time. So is with the choice of cars. The billionaire investor guru Warren Buffett, who lives in the same house that he bought in 1958, bought a brand new Cadillac last year. He traded his ten-year old car to get the new model that was chosen on the advice of his `auto friend’. Buffett, whose investment decisions sway the global market, listens to wise men. So do I. After listening to wise men, I have learnt many profound things in life. One day we all will realise that true happiness does not come from our possessions,for which we spent a better part of our life. I have realised that we will have true happiness and peace in the company of people w love, and who love us. I realised the five undeniable facts for leading a rewarding life after interaction with my friends whom I admire for their wisdom and knowledge. They taught me life’s simple facts
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Don’t educate your children to be rich. Educate them to be happy. When they grow up, they will know the value of things not the price. The best-awarded catchphrase in London is: `Eat your food as your medicines. Otherwise you will have to eat medicines as your food’.
There is a big difference between a human being and being human. Only a few really understand it. This has set me thinking about the true value of having mutually respectful relationship. I am not being philosophical, but these pearls of remind me that we are loved when we are born. We will be loved when we die. In between, we have to manage...! We can walk fast, or alone...! But if we want to walk far, we have to walk together...!! God is generous to all but we need to take His cue for leading a meaningful life. He has given us the six best doctors we can ever imagine to have. Look around for them. These are sunlight, rest, exercise, diet, self confidence and friends. The treasure of happiness is strewn all over the place. Pursue it, we can discover it. Always seek wise counsel. Words of wisdom should guide your life, whether in choosing the car or wife.
INTERVIEW areas are developed and they reach international standards. Q: How do you see the global automotive industry moving in the next 5 to 10 years? What is your outlook? Lonsdale: I think, overall, the automotive industry is prospering. In some parts of the world we are still recovering from the depression of 2007-08. The automotive industry uniquely is consumerdriven. When economies are doing well and people have more disposable income they will buy more motor cars or the industrial sector will buy more trucks.
IMI’s role is to ensure training and educational aspects fill the skills gap
OEMs and component manufacturers do? Lonsdale: Rather, we set the trends by going ahead of them. I believe we may well be the only organisation in the world that actually has a range of qualifications that meet those criteria. For example, if you take electrically- propelled vehicles like hybrids, we are very strong in that area. Interestingly, the Malaysian Department of Education uses IMI qualifications for hybrid electric vehicles to train their people in their colleges. We stay ahead of trends, we spend a lot of time with research departments and operations too.
Q: Is Growth driven by economy? Lonsdale: Absolutely. The local economies are the primary drivers for automotive growth. If you look at the developing economies, the infrastructure is improving, getting more sophisticated, people are getting more sophisticated. We are seeing a growth in consumer awareness, for example, in hybrid vehicles. In that sense, the aftermarket, in which
We also work very closely with industry, we have a range of steering groups to talk to industry, manufacturers, component manufacturers and other technological leaders in the industry to find out what is happening, how’s it going, and what impact does it have on the market place and the people working there. We use that to give a sense of direction to our qualifications and other solutions. Q: Automotive industry, from being American, European or Japanese, is becoming mainly Asian. What role does IMI play in this transformation? Lonsdale: You have made a good point. Malaysia comes to mind because I was there quite recently. If I recall correctly, the automotive component of their GDP is about 3.5 percent. Their aspiration is to more than treble that number by 2020. Now that’s a big aspiration. There has to be a good deal of growth for the Malaysian government and others in the ASEAN region to be able to develop that kind of automotive or component manufacturing or assembly capability.
we are particularly interested, is also becoming an important part. It’s also interesting to note that in Malaysia there are 33,000 people who work in automotive manufacturing and over 200,000 who work in the aftermarket area. If you’re a government, you are looking at opportunity of employment for your people. The automotive industry provides that opportunity provided the people themselves have the right skills with the right opportunity for training and education to develop their own skills to be more employable. Therefore pay more tax, to help the nation.
IMI’s role, as always, is to make sure the training and educational aspects fill the skills gap. In the developing countries there is a skills gap, there is a knowledge deficit and sometimes there could also be an ambiguity in the quality of the training that is provided. IMI’s role is to ensure those three
Q: Are there impediments also? Lonsdale: There is a major problem with skills development in the emerging economies particularly in the automotive after-market. Even the larger manufacturers often overlook the technical skills required to service and maintain
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new vehicles. This causes a problem for the customer and it holds back productivity for business. In the UK the government paid IMI to produce research to prove how effectively skills training can increase productivity. We proved that business can benefit from up to a 300 percent return on investment from a well-targeted training programme. The Return on Investment study is available for everyone to see on our website www. theimi.org.uk. Q: When you talk about hybrids or the electric vehicles, it’s about pushing the emissions from one place to the other. So what is the role of IMI in propagating sustainable mobility? Lonsdale: We want to encourage, of course, the development of less pollution and fewer emissions and in electric-powered vehicles we are encouraging governments and others to move down that route. IMI is a professional body, but obviously we don’t set the standards by which governments decide what they are going to do. We encourage legislation; we
the governments themselves have to take that initiative; we support it wherever we can. Q: Do you also support the initiatives to manage the energy challenges? Lonsdale: We want to ensure that we support those issues. For instance, in South Africa we spoke to a number of government colleges. Resources are a problem there and elsewhere to deliver the kind of training and the right resource for students and learners. IMI intends to promote that at both the government and individual employer levels so that we make our contribution to those aspects of a greener planet. Q: A step in this direction for sustainable mobility is connected cars. What is your view on this, the connected industry? Lonsdale: In our industry we would never try to put a stop to that kind of advance of technology, like telematics. The challenge is the technology and skills needed to manage and service those vehicles. Q: Too much of electronics brings too many complications. There are new challenges in the aftermarket with the increasing application of electronics. What is your view on this? Lonsdale: That’s why IMI is very active in ensuring that the skills gaps are filled to ensure the advantages of connected vehicles are realised. Our view is always about education, it’s always about skills. It is always about ensuring that from the point of view IMI, a professional awarding body, there are qualifications and missions to meet those challenges.
encourage governments to think in those terms to ensure their emission regulations meet required standards. Q: Emission regulation is a global necessity. But there is resistance from emerging nations as they are in the take-off stage and are struggling to catch up with the markets that have gone to the next level. How do you view this anomaly and disparity? Lonsdale: Our belief is that it is all based on educational understanding. The developing world quite properly wants to ensure they have a large number of people in gainful employment with the automotive industry. Hence they may have a different view on matured markets. Our view is that education, training and development is the key and the fundamental platform to change people’s opinion. In the end, of course,
Q: In the connected cars the technology is deskilling even the drivers and there are a lot of distractions for them. Technology is gradually taking away the traditional involvement of one who is behind the wheel. Is this the right direction? Lonsdale: I think that’s just the way it’s going. Again it comes back to skilled people working in that marketplace because they need to understand science, technology and how to use computers; they need to be diagnostic technicians. In a sense, the new technology is providing new opportunities for young and experienced people in the industry to upgrade their capabilities, and that is what IMI is encouraging. I agree it’s all a bit scary, the autonomous cars, which we are piloting in the UK. There are regulations in the UK that you cannot use mobile phones while driving a car and some companies even go further that you can’t use hands free in the car because your mind’s eye is elsewhere. So there will be more challenges in the future with more technology to distract the driver. It will be down to regulations to determine what is acceptable and what is safe. Driverless cars will change the game completely. AutoPartsAsia | SEPTEMBER 2015 | 25
INTERVIEW Q: India has transformed from a cheaper component manufacturer to a technologyintensive and cost competitive manufacturing base. Companies like Nissan, Hyundai, Suzuki and Ford has made India a manufacturing hub for different markets. What are your observations on this transformation? Lonsdale: From our perspective of the aftermarket, rather than manufacturing, it is clear that India is doing very well with regard to quality and development. It is clear that the quality component of the Indian aftermarket is changing rapidly, when it comes to Indian technology. A really good example is the Jaguar Land Rover phase because that has transformed the traditional British car manufacturer into a world beating technology. India is an important
particularly those that emanate from the UK. So we are very keen to see progress in India for us. Q: When can we see something happening? Lonsdale: As soon as possible. Q: The ‘skills and training’ environment in India is no better than that in the Middle East. The indigenous learning infrastructure in India is also not equal to the speed of growth in both light and heavy vehicles. What prevents you from getting into India in a big way? Lonsdale: Nothing really prevents us; it’s about timescales and opportunity. We are very actively involved and busy in those other marketplaces. We would very much like to have a higher presence in India. Importantly, we need to find partners to share the vision that we have about training, behaviour and skills. We are still in the process of looking for partners in India. Q: What kind of partners? Lonsdale: For example, educational establishments. They could be governmental, further education, or government skills development programmes for aftermarkets where IMI qualifications can make a difference. The partners could be those who are currently providing training, maybe private training organisations, to the automotive industry and who would benefit from an international qualification for their learners. Our model is to appoint IMI- approved centres around the world which would, by themselves, deliver the training to IMI standards, and therefore recognise their learners with IMI qualifications. Those are the partners we are looking for – government, private and OEMs.
marketplace but IMI is not well-established in India because of resource priorities from our side. Q: India is a big and emerging market with only 18cars for thousand people compared to about 600 in Malaysia, and 110 in China. You are very active in these countries and even smaller ones, but not in India, why? Lonsdale: It’s just an accident of history, to be absolutely honest. We see India as an important market for automotives. But from the IMI’s point of view, we have grown to such a level in Malaysia, China and South Africa over some 95 years. We see India as an important prospect for the IMI. We would like to have a strong presence in India. Our strategy, particularly for the last three years, with the appointment of a new chief executive, Steve Nash, with a BMW background, is much more focused on IMI’s strategic international development than it has been in the past. India is certainly an important prospect for us; this may take a little more time. We can appeal to people in the training and education sector on how to use IMI qualifications. Because of our historical relationships we understand the value that our Indian friends give to international qualifications, 26 | AutoPartsAsia | SEPTEMBER 2015
Q: What is your expert opinion about the strengths and weaknesses of the Indian automotive industry? Lonsdale: India’s strengths are manufacturing, process, an eye for quality, very great strategic vision in terms of what to do with regard to the whole nation. The weaknesses are not unusual; of course, there is a skills gap at all levels and all disciplines of business. There is also a knowledge deficit at that same level and there is some ambiguity in terms of focus on training both at the government and private level. That’s not unusual to India, it’s quite usual to many other countries. That is where IMI attempts to provide a platform to say that here are international qualifications, skills standards, knowledge standards where we can make a difference in partnership with the governments and training providers. Our investment study has made a big impact on people’s perceptions about the productivity value of training people. Those who are concerned about learning and training would always recognise that better trained people are more productive and more efficient, and they make real contribution to the world.
SAFETY
Bosh Safety Systems To Prevent Road Accidents India is one of the top three markets for the automotive industry along with the US and China. The potential for the growth of the Indian market is very big as only about 15 Indians out of 1,000 have a car now. India’s automotive sector is expected to grow as in other developing countries. But it is ahead of other countries in the rate of road accidents which are on the increase mainly owing to human errors. While enforcement of safety regulations is important there are also systems and tools manufactured by companies like Robert Bosch GmbH that help, to a great extend prevent accidents. Bosch is serving the road safety market with its proven and innovative systems which are relevant and important for Indians, Indian vehicles and roads. By T Murrali
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osch’s accident research analysis of India-specific data now clearly underscores the significant benefits that 28 | AutoPartsAsia | SEPTEMBER 2015
Automated Driving
advanced vehicle safety systems such as Electronic Stability Program (ESP) can achieve. “We think, ESP which has seen widespread adoption in the developed markets will soon become very relevant for the Indian market,” Klaus Maeder, Executive Vice President, Chassis Systems Control, Robert Bosch GmbH, said. “Over the past few years, the installation rate of Antilock Braking System ( ABS) has risen steadily in the Indian market. Acceptance of technologies like ABS and airbags is rapidly growing among OEMs as well as end customers.”
Safety Systems Bosch has two important safety systems, ABS and
ESP (Electronic Stability Programme). Since 1978 Germany had road safety systems beginning with the traction control systems, then ABS and from 1995 ESP. The story continues with improved safety systems for buses. “In 2013 we introduced ESP for electric or hybrid vehicles and in parallel we had the first electronic booster. The next milestone was in 2014 when we changed the mid-range radar system to avoid accidents due to unforeseen traffic flow. In 2016 we will see cars in the market with active pedestrian protection on a stereo-video system and finally in 2022 or later we will see fully automated driving,” he said. Nine years ago the North American Highway and Traffic Organisation made a study
of the effectiveness of such safety systems and found that accidents for single vehicle passenger cars were reduced by 34 percent for SUVs and by 60 percent for larger cars. The penetration of ABS in the US for new cars is 87 percent and of ESP it is 59 percent. In Europe it is about 99 percent ESP for new cars. Germany had these systems for 20 years. A study by a government agency has found a clear link between the installation rate of ESP and ABS systems with the decrease in road fatalities. The German government, therefore, decided to implement ABS in all new cars 12 years ago and ESP six years ago. In the overall population of cars in Europe today the safety systems have reached a level of 60 percent. The installation rate for ABS in India, like in Indonesia, is around 40 percent and for ESP four-five percent in the new cars. However, the penetration of these systems among the total population is very low. “This could explain why we do not see any effect here now on road fatalities,” Maeder said. Bosch had started accident research in India a few years ago. Pilot project studies were done in 2009 and in 2011, in Coimbatore, Mumbai and Pune. The study investigated 300 plus accidents, with 700 parameters, to get more depth and detail of information. A consortium with Bosch, Daimler, Hyundai, Renault, Toyota and Honda as members was constituted for the exchange of information on accident research. Bosch followed international methods for classification with scientific support and investigated about 1,000 cases in 2014. “Unfortunately there is no positive trend in India. The fatalities now are higher than what it was 10 years ago. For passenger cars it is 70 percent, for two-wheelers 29 percent,” he said. According to the study two
Electronic Stability Programmde - ESP in action
out of five passenger cars can avoid accidents if they are fitted with ABS; if fitted on twowheelers it can prevent 1 out of 3 accidents. By using ESP up to 70 percent losses, skidding and accidents on the highways can be prevented. “We can send a clear message that by using ESP we can avoid 10,000 accidents and save lives on Indian highways,” Maeder said. Safety and driving comfort are the important factors for the automatic driving and driving systems. Safety is always promoted by the government and other official agencies and of late even by OEMs. Some of the OEMs in India have announced their safety policy in which they are not only making the airbag mandatory but some of them are also giving more options of ABS in their variants. A 100 percent launch of vehicles with ABS and ESP has not happened in India. It depends on the market. In Germany and Western Europe all OEMs had started with ESP, even before legislation made it compulsory. Most of the OEMs decided themselves to equip the cars with ESP because it was a selling factor. Star ratings are given to the vehicles based on their safety features. OEMs try to get a five-star rating, the highest for safety. “Proliferation is one of the major trends, which means that functions are growing very
quickly in all kinds of cars. On the other hand, there is need for differentiation. Having a big engine is not good enough anymore. On the technology side we see new sensors, new actuators, which are drivers for new functionalities,” he said
Automated Driving There is much discussion about automatic driving for which there is a long way to go. Bosch considers that there is a big market for safety systems even if the vehicles are semiautomatic. “The degree of automation is directly linked to customer benefits. Partly and highly automatic means the driver has to supervise always the driving function; fully automatic is when the driver is out of the loop. Automated driving will come in step by step and this approach is hand defined by technology and also from a psychological point of view. People will not just accept a fully automated car where they cannot interfere at all. In a survey in Europe, 52 percent of people said they would like automation in the car but they would also like to be able to switch it off. So there are both these possibilities but we feel the psychological barrier can be overcome,” said Dr HansPeter Hubner, Executive Vice President, Chassis Systems Control, Robert Bosch GmbH. There are cars produced for AutoPartsAsia | SEPTEMBER 2015 | 29
SAFETY driver will be doing something else, not focusing on the road, and the system will have to measure everything,” Hubner said. All these are future technologies he said. According to him the first project, integrated cruising, may come in 2017, highway assist in 2018 and in between, the pilot system that does not have to be supervised, may be introduced. All would be for driving at low velocities, which the system can handle easily, he noted. In the meantime a lot of support systems for automatic driving may be developed, he opined. The highway pilot being developed by Bosch is expected to be introduced in 2020 and the autopilot by 2025.
Support Systems automatic driving and parking in a protected environment at low velocities. The next step will be the highway-integrated cruising. Here the car is driving automatically, keeping the lane, accelerating and braking when required. The driver is supervising the car with his hand on the steering wheel. If he takes off his hand the sensors first give a warning and after a few seconds switch off the system. Next step is highway assist; here it offers the possibility to overtake and change lanes.
“These are all partly automatic driving. The next big step will be highway piloting; less supervision or with no supervision at all at certain times. The highway is an environment with few pedestrians so we can have a safer approach. The first introduction will be that the system is able to run fully automatically but the driver has to be able to take over after a certain time. If the system fails, it gives an indication and the driver will have to take over. In fully automatic driving, the
Bosch has been developing all kinds of sensor elements radio sensors, video cameras, ultrasonic sensors - and on the actuator side for driver assistance - ESP systems, electronic boosters, electric power steering and restrain systems. It has been working also on navigation systems to create maps for automatic driving and other different functions to support drive parking, travel assistance, cruise control, pedestrian protection with radar or video system on board, and emergency braking. Video cameras and sensors with good multi-sensing capability of 360 degrees around the car are the prerequisites for automatic driving. As safety is critical there should be protection technical failures. “What will the system do if some of the components fail, since there is no driver to interfere? So Cyber security is vital. Legislation is also an important aspect as some countries do not allow the car to be driven automatically without the driver; in some countries you can’t drive automatically if the speed goes beyond a limit,” he said.
30 | AutoPartsAsia | SEPTEMBER 2015
SAFETY
Bosch makes Hollywood fiction a reality
There are also issues like system architecture. For example, in braking, if the ESP system is not working then there has to be an alternate power or hydraulic supply to brake. Similarly, if the battery fails there should be a backup battery. These probabilities demand that the overall architecture of the system has to be different. In automatic driving, if one component fails, it is not possible to switch it off because there is no one to take over the vehicle. Therefore, the systems should be such that even if one component fails, it (the system) should be able to drive the car to a safe point. This would be one of the major challenges for developing the automatic driving system. Another important point is that for fully automated driving, “there should be an entirely different navigational map, one which is very precise and which clearly shows you where you are. But all these come step by step. We need time to develop them,” Hubner said. For Bosch the future cars will be automated, connected and also electric. They will also be online, perhaps something like a mobile phone, carrying information out of the cloud. “Electric mobility speaks for 32 | AutoPartsAsia | SEPTEMBER 2015
itself, and there will be parking management. These systems integration will be done in 2018, he mentioned.
For India The three specific points very relevant for India, according to Hubner are park assist system (the basic form of automation), the driver drowsiness detection system, and predictive emergency braking system. “When we decide on the functions that are relevant for the Indian market we take lots of data from our research study. We also take into account the safety trends that are developing here.’’ The company’s research has shown that the Indian consumers rate safety among the top three decision-criteria. The second is the awareness of safety technologies like ABS and air bags. The third trend is the proactive safety steps being taken by some of the OEMs. They use safety as a kind of differentiator for themselves and announce their policies, launch vehicles with mandatory airbags in it and increase the rate of installation of safety technologies. Kartikeya Joshi, Senior General Manager, Sales & Marketing, Bosch Limited, pointed out
that Bharat New Vehicle Safety Assessment Programme (BNVSAP) will provide the consumer an independent index to assess safer cars when they decide to purchase one. It may be noted that the government has made crash standards mandatory for all new vehicles from Oct 1, 2017.
Manufacturing Bosch, at its Chakan plant in Pune, has been producing ABS since 1997 and ESP from 2009. It is producing close to one million active safety units a year catering to all OEMs in India. Since Bosch has its own commercial organisation for sales, marketing, product management, and project management, it is capable of offering state-of-the-art support to the OEMs in India. The company has also set up state-of-the-art Technical Centre and Vehicle Test Lab at the same facility to train the engineers to be able to apply its technologies according to the specifications of the OEMs. It also has a separate team to support the hardware and software development for the products in India. “The overall result is that we are able to achieve the ability to do complete local application of ABS in India,” Joshi added.
COVER STORY
‘Make in India’ has become a cliché of the present government. There is nothing new. There had been a National Manufacturing Competitiveness Council since 2005. There is only a rephrasing of an ongoing concept by changing the word ‘manufacture’ to ‘make’. The previous governments had realised the important role of ‘manufacturing’ in the overall economic growth, skill development and employment generation. If the present government’s focus does not progress from `Make in India’ to `Create in India’ through innovation and research and development the `Make in India’ will fizzle out.
By T Murrali
I
aeroplanes. The market decides the worth of the product. The market can be something similar, inferior or superior to that of India. The primary reason for selecting India as the manufacturing base would be cost-effectiveness.
The product can be anything, from bicycle to
If the products made in India cannot be sold in markets more developed than and superior to that of India, and cost-effectiveness is the only
nherent in the ‘Make in India’ mantra is the question ‘what to make’? India has already developed the capacity and capability to make what almost 90 percent of its people need. If making in India is for the export market, three elements become critical: The product, the market, and the reason for choosing India.
Promote R&D To
‘Create In
Without Creating Ma k 34 | AutoPartsAsia | SEPTEMBER 2015
In India’
a king Will Make Off
AutoPartsAsia | SEPTEMBER 2015 | 35
COVER STORY
Automobile Production Trends
Source: SIAM
premise for choosing India, the making in India will not be sustainable for long. If the product is not innovative and of superior quality, India will lose its low-end markets as these markets advance and the consumers become more demanding. If cost-effectiveness is the only advantage, the make-in-India companies will leave India and make to cheaper destinations. If the government, policy-makers and the industry want to make ‘Make in India’ economically viable and sustainable, the focus should be on going beyond making; it should be on setting high standards of technical and environmental quality, developing innovative designs and creating new variants and products. And these are possible only by investments in research and development, and development of skills. The government has to increase investments in R &D and promote and incentivise private sector R&D, 36 | AutoPartsAsia | SEPTEMBER 2015
skill development and quality programmes. Though the make in India programme includes new initiatives designed to facilitate investment, foster innovation, protect intellectual property and build best-in-class manufacturing infrastructure, its thrust on R & D is unequal to the enormous task to be carried out to make India a viable, sustainable and lasting manufacturing hub. The Indian automotive industry, including both the vehicle and component segments, has grown to critical mass in volume and numbers over the years supported by entrepreneurs, government policy, fiscal and infrastructure incentives. If the automotive industry can be driven from ‘making’ to the next stage of ‘creating’, by increased investment in innovation and R & D and vigorous quality improvement, it can be made a model sector for the ‘Make in India’ campaign.
Vehicle Manufacturing Automotive industry in India has come a long way. The journey has been one of the toughest as the industry had to start from scratch when there was absolutely nothing – be it infrastructure, technology, talent, support from the government or raw material. Today India is a place to reckon with for the global automotive
Automobile Domestic Sales Trends
Source: SIAM
community as a growing market and viable manufacturing base. Until the mid-forties, no serious efforts were made to manufacture vehicles in the country. Most of the vehicles were imported and a few were assembled locally. The industry felt the need to move beyond the ‘screw driver’ technology and manufacture vehicles completely indigenously. The fire in the entrepreneurs’ belly fuelled establishment of automotive manufacturing units.
The industry has come a long way since Premier Automobiles manufactured the country’s first car in 1947, the year the country became independent. The car was made in collaboration with Chrysler Corporation of the US in the western region of the country in Mumbai (then Bombay). In the following year Hindustan Motors set up its plant in the Eastern side of the country, in Kolkata (then Calcutta); East followed the West. In the commercial vehicle front, Tata Engineering and Locomotives Company Limited (presently Tata Motors) was established in Jamshedpur in 1945 to make locomotives and other engineering products. The company found synergies as the group had its steel mill there. Around that time the Mahindra brothers decided to manufacture the Willys jeeps in Mumbai. At the same time a panel was constituted to make recommendations on developing the manufacture of automotives and tractors in India. During this time Ashok Motors (presently Ashok Leyland) was set up in Chennai (then Madras), for the assembly of Austin cars and trucks. Besides, Standard Motor Products of India was incorporated. Standard Motor Company of Coventry offered to set up a factory in Madras in association with Union Company (Motors) Limited to manufacture Standard Cars.
Bus Manufacturing
Paint was the first component to be produced for the requirement of automotives in the country in AutoPartsAsia | SEPTEMBER 2015 | 37
COVER STORY Automobile Exports Trends
Source: SIAM
Simpsons took up a franchise for Perkins ‘P’ series diesel engines to be manufactured in India. Subsequently it set up a manufacturing unit in Chennai (Madras). By the end of the First Five Year Plan (1951-56) the value of automotive components and parts produced in the country reached about Rs 2 crore. The Tariff Commission was set up in 1953 to facilitate growth of automotive sector in the country. It directed that only manufacturers with progressive manufacturing programmes were allowed to operate. This became the propelling force for indigenisation and self-reliance. The Tariff Commission Report on automotive industry mooted the idea of forming an industry association representing manufacturers of vehicles and parts. All India Automobile and Ancillary Industries Association (AIA & AIA) came in to existence in 1959 and in the first year itself it saw about 60 members. The same year Bajaj Auto was granted licence to make two and three wheelers. Only about 20,000 vehicles were manufactured in a year just after Independence, thereby restricting the availability to only the rich and famous. Today the industry has grown more than 1,100 folds and makes over 22.4 million vehicles a year.
Source: SIAM
1948 by the Amalgamations Group. India Pistons, belonging to the same group made its entry in 1949 to make the crucial engine part – pistons. It was a significant move as engine piston is a performance and safety critical part. During the late forties the Government announced that motor vehicles can be imported only in Completely Knocked Down (CKD) condition. 38 | AutoPartsAsia | SEPTEMBER 2015
The collaboration between Maruti Udyog and Suzuki in the mid-1980s and relaxation in Government policy set the tone for establishing several joint ventures including Ind-Suzuki, Hero Honda, Kawazaki Bajaj, Yamaha Escorts, DCM Toyota, Alwyn Nissan etc. As the need for exhibiting automobiles was felt to propagate sales, the association organised the country’s first ever Auto Expo in 1986.
Qualiity movement made auto component industry to establish robost process capabilities
IP Filings by India. Source: WIPO
robust automotive base in the country. Automotive players had been making in India both for the domestic market and exports.
Investments in Components
IP Filings by China. Source: WIPO
The foreign investors that came to invest in Indian automotive manufacturing industry, after liberalisation, include Ford, General Motors, Hyundai, Mercedes, Toyota, Volkswagen, BMW, Nissan, Renault, Piaggio, Suzuki, Harley Davidson etc. Today, Indian automotive industry is the world’s largest manufacturer of tractors and the second largest of two wheelers and the fourth largest producer of commercial vehicles.
Small Wonder The small car Tata Nano made a big impact on the global automotive space. It proved a point again on the capabilities of the automotive component manufacturers of India in developing a car at affordable cost. India’s world-class automotive component industry has been instrumental in developing a
The Indian auto-components industry can be broadly classified into the organised and unorganised sectors. The organised sector caters to the original equipment manufacturers (OEMs) and consists of high-value precision parts, systems and modules. The unorganised sector serves mainly the aftermarket. In the sixties the automotive industry grew significantly with several entrepreneurs getting into making auto components. It is also fuelled by the progressive curtailment of spare parts imports, perhaps due to foreign exchange shortage. This led to component manufacturers establishing tie-ups with foreign companies. Exports began with the rupee getting devalued after the Indo-Pakistan war in 1971. In 1966 the push came from the then President of ACMA, M K Raju, who said, “Our target for exports is 10 percent of our production and while I realise it is the most difficult task, we shall spare no efforts to achieve this. If we can at least export to the extent we import, we shall not be a liability to the country in the balance of payments position, if not an asset.” The turnover of automotive components rose to Rs 133 crore in 1971. In 1984 the components makers association spun off and Automotive Component Manufacturers Association of India (ACMA) was formed. The automobile portion of the association was renamed as AIAM. The AutoPartsAsia | SEPTEMBER 2015 | 39
COVER STORY
Patent applications by Top Fields of Technology in China. Source: WIPO
Patent applications by Top Fields of Technology in India. Source: WIPO
Germany, Delphi (the US), Aisin Seiki (Japan), Graziano Transmissioni (Italy) TRW (USA) Valeo (France) and Magna (Canada) set up manufacturing bases in India. During the past few years the Indian auto components industry has been on a growth trajectory. It was mainly owing to the buoyancy in vehicle manufacturing, recovery of the global economy, improved market demand and credit availability, though not at the expected levels of the cost of finance. The fiscal incentives also supported the positive sentiment. The cumulative foreign direct investment (FDI) inflows into the Indian automotive industry during April 2000 – February 2015 were worth$ 12,232.06 million as per the data published by the Department of Industrial Policy and Promotion (DIPP). According to ACMA, the industry exports are projected to reach $ 30 billion by 2020–21. Indian and foreign companies including BMW, Ford, Hero MotoCorp, HMSI, MRF, Uno Minda, Suzuki etc have lined up major investment in their respective sectors in the coming years.
Quality Movement
Top: China; Bottom: India
Source: WIPO
Society of Indian Automobile Manufacturers (SIAM) was set up 1999 and took over the work of AIAM. The automotive industry felt the need for enhancing volumes. Entry of Maruti Udyog, supported by Suzuki, ushered in significant changes in the way the components were made and supplied to the OEMs. Several multinational companies including Bosch, FAG and ZF from 40 | AutoPartsAsia | SEPTEMBER 2015
The quality movement evolved in the country during the mid1980s with the Confederation of Indian Industry (CII) propagating the need for improving quality and promoting the cluster approach. In 1986 when the Japanese Union of Scientists and Engineers (JUSE) allowed foreign countries to apply for the Deming Award, not many Indian companies took advantage of it. The Deming Prize was constituted based on Dr W E Deming whose contribution on statistical quality control helped Japan build up its foundations after World War II, besides recognition as a quality destination in the world. After opening up of the economy, a few industrialists including Venu Srinivasan from the TVS family, felt the need to improve quality of business to cope with international competition. Srinivasan and C Narasimhan of Sundaram
CHINA - Top Applicants in 2013
INDIA - Top Applicants in 2013
Applicants
Publication Rank
Applicants
Publication Rank
ZTE Corporation
2309
2
CSIR
91 235
Huawei Technologies
2110
3
Tata Consultancy Services
47
454
Shenzhen China Star Optoelectronics Technology
916
17
Ranbaxy Laboratories
46
460
Tencent Technology
359
53
IIT
34 609
BOE Technology
353
54
Lupin
30 683
Zoomlion Heavy Industry Science & Technology
Dr Reddy’s Laboratories
29
705
284
74
Monk Akarshala Design
28
731
Huawei Device
276
76
Cadila Healthcare
27
764
China Acamedy of Telecommunications Technology 227
Reliance Industries
22
945
92
Hetero Research Foundation
19
1078
Institute of Microelectronics of Chinese Academy of Sciences
139
140
Shenzhen BYD Auto R&D Company
130
150
Source: WIPO
Source: WIPO
Clayton propagated in India the Total Quality Management (TQM) programme. As a result two TVS group companies won the Deming Prize. While the brakes division of Sundaram Clayton (now Wabco India) was the first Indian company to get the Deming Prize in 1998, TVS Motor Company won the same in 2002, becoming the first two-wheeler manufacturer in the world to get this coveted award; a few companies followed as winning the Deming Prize had several advantages. Winning Deming and continuously practising TQM is one of the key determinants for the global performance bike leader BMW Motorrad to associate with TVS Motor Company.
TQM movement spread, several other companies turned their attention towards this and got involved in the process. Restructuring of the manufacturing cells, lean manufacturing tools, built-up competency and reduced rework, processing of the scrap and very few machine breakdowns were some of the benefits of the quality movement. TQM helped several manufacturing organisations that wanted to focus on product development. It also helped the companies transform the mindset of their employees. The emphasis is on preventive measures and so the automotive companies have preventive and detection poka-yokes. These
Interestingly, India continues to be the second largest in terms of the number of Deming Prize recipients in the world, next only to Japan. After Sundaram Clayton’s achievement, the movement picked up rapidly as Professor Tsuda and other Japanese experts began educating companies on TQM. In addition, several companies have gone through CII’s TPM club for TPM (Total Preventive Maintenance), awarded by the Japan Institute of Plant Maintenance. Besides, the cluster programme initiated by Maruti and CII to develop auto component manufacturers under Tsuda was a turning point. With the success of the first cluster, the second one began subsequently, and as the benefits of getting into the AutoPartsAsia | SEPTEMBER 2015 | 41
COVER STORY
India is the manufacturing hub for small-sized vehicles for several global organisations
initiatives led the companies practising TQM and TPM towards maintaining very low ppm levels. It made everyone in the organisation align with the set goals and transformed the organisations from operating the business to managing it. It significantly improved the work culture in the organisation with people having total clarity on their roles and responsibilities in contributing towards company goals. While there are immense benefits in terms of customer satisfaction and confidence, it is profitability that will keep suppliers healthy. Even in the current economic situation TQM companies are profitable. So far 23 companies in India have received the Deming Prize and of which
seven companies obtained the next level – Deming Grand Prize - Sundaram Clayton, Mahindra & Mahindra, Rane TRW Steering Systems, Tata Steel, Lucas-TVS, Rane Madras and Rane Brake Lining. Practising quality concepts helped companies to address abnormalities to sustain the quality movement, eventually keeping the customer satisfaction index high. Many organisations practice TQM as it increases capability of employees, the mean time between failure and response, machine availability and teamwork. According to industry experts, a few Toyota group companies decided to enter the Indian market after visiting some of the Deming companies here. This is because it made them confident that Indian auto component manufacturers could implement TQM successfully.
Exports When the economy opened up, about 70 percent of India’s exports were to aftermarket. In the following decade, the components makers made significant progress with OEMs, who are more quality conscious than aftermarket players. Today, close to 85 percent of the exports go to OEMs and large Tier-1 companies that supply to the vehicle makers. The suppliers have evolved over a period of time and began investing in product design laboratories. 42 | AutoPartsAsia | SEPTEMBER 2015
India is criticised for being a Jugaad ( the Hindi word means solving complicated issues, perhaps by bending rules) Some of the multinational companies feel that it is one of the biggest source, which ignites innovation to fix certain problems. Recently the Chairman of Mahindra Group, Anand Mahindra said, he wanted everyone to work towards moving from ‘Jugaad’ to ‘Jhakaas’ (superb -in Hindi). He said this is about thinking differently and not just thinking cheap. The quality, and environmental standard movement in the country has to be taken to the global arena on a sustained manner for ‘Make in India’ to be relevant in the long-term.
Automotive Mission Plan The Automotive Mission Plan 2006-2016 (AMP) was announced by the Government of India in 2006. It was to make India the world’s destination of choice for design and manufacture of automotives and automotive components. The AMP projected that by 2016 the output of automotive sector will be at $145 billion and
accounting for more than 10 percent of the GDP, from the $35 billion and accounting for three to four percent of the GDP in 2006. These projections would also provide direct and indirect employment to about 25 million people. The other objectives, according to DIPP, were to set up technology modernisation fund for SMEs and the establishment of automotive training institutes
and auto design centres, special auto parks and auto component virtual SEZs. However, AMP could not achieve fully the set goals. According to SIAM the economic slowdown in the last three years would force the Indian automotive industry to miss by up to 25 percent of the set targets. In this scenario, the Automotive Mission Plan for the next decade, beginning 2016, is being prepared and expected to be released shortly.
R&D Investment With the initiatives taken by individual companies the India automotive industry has become well known in the globally. Companies like Maruti and Hyundai made India as the hub for making small cars. However, the Indian automotive industry is facing growing competition from other low-cost countries; and the key missing link in the chain is Research and Development. The Make in India campaign should help the existing players in India leverage their strengths and expand
further by making new investments in R&D and other areas. Therefore, for Make in India to really happen, the country needs to focus on invention and innovation in addition to enacting laws that will really promote entrepreneurs. Though India has evolved in manufacturing by developing path-breaking process capabilities, the original invention is very few. AutoPartsAsia | SEPTEMBER 2015 | 43
Manufacturing in India has become world-class; about a decade ago the country reached a unique status that every vehicle rolling out of assembly lines from anywhere in the world would have some components manfuactured in India.
Research and development, innovation and quality standards have not received the required investment, or promotional support either from the government or the private sector. A notable initiative from the Ministry of Heavy Industries and Public Enterprises is the setting up of the National Automotive Testing and R&D Infrastructure Project (NATRiP) at a cost of $88.5 million for the industry to have global performance standards and also to provide low-cost manufacturing and product development solutions. The Union government has offered tax rebates and excise duty concessions on R &D expenditure. For auto components the government has offered a weighted tax deduction under Section 35 (2AB) of the Income Tax Act for both capital and revenue expenditure incurred on scientific research and development. Tax benefit is also given to assessees for any sum paid to public sector institutions or to specific people doing research on approved projects. Manufacture of batteries for electric vehicles and hybrid vehicles also are offered tax concessions. The state governments
China; Source: WIPO
44 | AutoPartsAsia | SEPTEMBER 2015
also give incentives and support for R&D investments. But these passive and half-hearted actions will not promote R&D or innovation to a level to ‘Create in India’. Though initiatives like Maruti Centre of Excellence (MACE), ACMA cluster programmes and similar tasks taken by others are welcome, there is a long way for the country to go. This is because research in India is little known as compared to China. Though a comparison is unfair a close look at what the Chinese government and industry have done will vindicate the long miles India has to travel to build its own sustainable manufacturing base. Take for instance the overall Patents filed by China and India. The IP filings by China has grown by 44 folds to reach 734,081 in 2013 from 16215 in 1999. While India has only grown by close to seven folds to 20,907 from 2,645 during the same period. In 2013 India made 21,000 patent filings compared to 734,000 by China and 501,000 by the US.
India; Source: WIPO
Zinnov, a leading management consulting firm, recently released its recent findings on the R&D spend by top Global 500 companies for the year 2014. Total R&D investment by Global 500 companies grew by 4.31 percent to reach USD 614 billion mark in FY2014 from USD 604 billion in 2013. The highlight is that over 65 percent of the overall R&D spend was contributed by the top 100 R&D spenders, with majority of this growth coming from North American and APAC based firms. The companies based in Beijing, Shanghai and Shenzhen contribute to more than 95 percent of the total research and development (R&D) spending in China. The Global 500 R&D spend in China stood at USD 26 billion in 2014 and it is expected to reach $80 Billion by 2020. The number of ‘billion dollar club’ members (companies that spend more than USD 1 billion in R&D Expenditure) in the Global 500 R&D spenders has increased though the share of R&D spending has not seen any significant change. It also highlighted that the ‘billion dollar club’ is gaining more companies from the APAC region. In terms of geography, China saw the maximum amount of growth of 20 percent in R&D spend from 2012 to 2014; even higher than that in Europe (consistent over the last 3 years) and North America (steady at 4-5% growth) and Japan (which is on a recovery after a strong decline the previous year).
According to Preeti Anand, Associate Director, Zinnov, “China is visibly and firmly establishing itself as an R&D powerhouse with 4x the growth in R&D spend as compared to even US West coast companies.” On the innovation index also India has been performing badly. According to 2014 edition of Global Innovation Index survey, India is ranked 76, slipping from 65 th position in the previous year. The country is the worst performer among BRICS nations, with all the others improving their positions from that of the previous year. Again, China led the pack among BRICS nations holding 29th position, improving by six places. Russia soared to 13th place from 49 while South Africa ranked 53rd, gaining places, and Brazil improved by three places to reach 61st position. The spending on R&D by India is in fractions of the GDP while it is close to four percent by Korea. The automotive related research will still be less in India. The downside is that more than three-fourth of the investment is made by the government. This does not mean that the government can wash its hands off. While it is necessary for the organisations to invent, the government needs to create a conducive atmosphere to initiate research and development. If the government can make this as a system in India, it will really help not only the automotive industry but the manufacturing sector as a whole. Will the government get into action, rather than finding fancy words, and look into possibilities that will encourage Create in India? With inputs from Joseph Vackayil AutoPartsAsia | SEPTEMBER 2015 | 45
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PREVIEW
More Participants Expected At Automechanika Shanghai APA Bureau
T
he 2015edition of Automechanika Shanghai, Asia’s largest trade fair for automotive parts, accessories, equipment and services, will be held during December 2-5, 2015 at the National Exhibition and Convention Centre, Puxi, Shanghai. The expanded venue will accommodate the show’s substantial development and house the 280,000 sqm exhibition space, which is an increase of 27 percent from 2014. The number of worldwide exhibitors is also expected to increase eight per cent to 5,300. The success of the show has attracted new exhibitors including industry-leading brands like AISINCHINA, Bilsten, Denso, Dometic, DuPont, Litens, SATA, SWISSVAX and TRIBOS. More names from local automotive parts production bases and companies from second-and third-tier provinces of China are also among the exhibitors. The increase in high-quality exhibitors has attracted the visitor base, with numbers expected to reach 100,000 this year, up 12 percent from the last edition. Representing the show organiser, Jason Cao, Chairman of the Board of Management, Messe Frankfurt (Shanghai) Co Ltd, said, “Automechanika Shanghai has built its reputation as the acclaimed ‘mustattend’ industry event for information exchange, marketing, trading and education, serving the scope of the automotive industry. Due to the immense continued growth of the show, the new locale will not only bring a broadened opportunity for sourcing products, but also fresh
ideas and action plans.” The show is organised by Messe Frankfurt (Shanghai) Co Ltd, a subsidiary of Messe Frankfurt Exhibition GmbH, one of Europe’s oldest and largest trade fair organisers, and the China National Automotive Industry International Corporation (CNAICO), is an integrated state-owned enterprise specialising in international trade and exhibitions, with diversified operations across industries in China. As a result of Messe Frankfurt and CNAICO’s robust worldwide resources and vast network, Automechanika Shanghai receives strong support from more than 50 local and overseas trade associations and government agencies. Regarding the Automechanika Shanghai fair and the cooperation between organisers, Han Xiaojun, General Manager of CNAICO, said, “The partnership our two entities have enjoyed has proven to be fruitful for the industry and the widening emerging market. The effort included attracting more domestic and overseas leading brands and pavilions to demonstrate the variety of the latest technology, product and service, on the other side, extending into second-and thirdtier Chinese cities and overseas emerging markets, where growth potential is huge. This will result in greater prospective markets for both exhibitors and visitors of Automechanika Shanghai.”
Booming Sectors The Parts & Components sector will expand exhibition space to 146,000 sqm to feature the latest
products and technologies and the international hall will swell to 27,000 sqm. The Auto Air-Conditioning Zone in this sector will be further enhanced to accommodate over200 companies of the entire supply chain. The Repair & Maintenance sector will be housed in a 40,000 sqm space to accommodate over 700 exhibitors from around the world and it will incorporate more leading brands from local repair and maintenance hubs, including Guangdong, Hebei, Liaoning, Shandong and Yangtze River Delta. Overseas countries and regions, including France, Germany, Italy, Japan, Korea, Taiwan and Turkey, will showcase their innovative and quality products and technologies. Accessories & Tuning, is projected to rapidly expand to 54,000 sqm, which is a 50 percent jump in space utilised from 2014. Tuning products will be further emphasised this year, with newly launched items introduced through fascinating on-site activities and hands-on demonstrations. In addition, the Premium Buyers Club will continue this year, which offers visitors an upgraded VIP buyer experience. This programme offers exclusive services for highquality premium buyers at a senior management level, or those who hold full purchasing authority during the show. Benefits include pre-showupdates, usage of facilities in the premium Buyer’s Club Lounge and pre-arranged networking meetings with selected quality suppliers to make sourcing more effective. AutoPartsAsia | SEPTEMBER 2015 | 47
SPECIAL REPORT
OMRON Offers Automation, Sensing,Control Solutions To
Automotive Industry Established in 1933, OMRON Corporation is a global leader in the field of automation based on its core technology of sensing and control. Its business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronic components, social infrastructure systems, healthcare, and environmental solutions. Incepted in 1996, OMRON Automation India caters to over seven industrial segments like packaging, automotive, material handling, solar, food & beverages, textile and panel building applications. The product portfolio includes industrial components, automation systems, sensing and safety, motion and drives, and software. By T Murrali
O
MRON provides a wide gamut of solutions utilised in the industrial automation domain such as laser sensors, proximity switches, PLCs, Vision systems, safety components and a multitude of auto sensors. “Our product basket is pretty huge; we have something like 200,000 products. As an organisation we make sure that all of them are on some kind of an integrated platform. They are all connectable blocks that can be used to build a solution. They are not disparate pieces, they 48 | AutoPartsAsia | SEPTEMBER 2015
Sameer Gandhi
Pick and Place robots at OMRON Automation Center in Mumbai
can be used discretely but at the same time, they can also be put together to build a larger solution. This explains one of the core aspects of what we do’’, Sameer Gandhi, Managing Director, OMRON Automation India, told AutoParts Asia. For the automotive industry, the company offers automation, sensing components and much more. “We can also do things like traceability. It is all about ensuring the right assembly of all the solutions. For example in a brake assembly (which has multiple parts), a piston ring assembly or a ballbearing assembly- the entire assembly can be checked for visual completeness and quality including dimensions by an OMRON vision system. The vision system not only identifies whether the quality is acceptable or not, it can also store the image for future analysis Automation can be selectively customised and the company has been doing this for many car manufacturers successfully. Another example pointed out by Gandhi is the flexible manufacturing followed in the automotive industry. It can be as simple as a petrol version followed by a diesel version, and again followed by a petrol version on the same line. There are parts of both that are fixed manually. For instance, a sticker pasted on the inside of the fuel tank lid informs whether it is petrol or diesel. It is just pasting a sticker. It is simple but it is crucial. How does the worker know which version it is and what part he has to work with? A small mistake by the worker can ruin the car as people will fill in the wrong fuel! So how do we error-proof this kind of an assembly operation? One possible solution is by tracking the item (in this case the car) using an either a bar code sticker on the car or a RFID tag. “The worker reads the bar code using a hand-held scanner, or a Radio Frequency Identification (RFI) tracker is fixed which identifies which car variant it is. There is a matrix of boxes where various parts/items are placed. Based on the reading from the bar code or the RFID tag, the system
indicates to the worker which particular box he is supposed to pick up the part from. When the worker puts his hand in to pick up the sticker (or any other part) he actually trips a switch. The switch indicates back to the system that this job is done. The important thing is, if he goes to the wrong box there would be an alarm so his supervisor gets an alert that he person has made a mistake and there is a possible problem. So even if the car has moved down the line, he knows which car has the error. He does not have to disrupt the entire assembly; he just goes to the end, traces the car and makes the change.” However, such automation will not lead to deskilling of people. Automation is an enabler to improve productivity and reduce cost, which in turn will spur demand and provide employment to more people with higher skill sets, Gandhi said. “What is happening across the board in the automotive industry is that beyond a point it is not possible to do things without automation for the sake of productivity and quality. As long as you make 20 models a minute you can probably check whether a thing is there or not but when you make 100 models a minute, it is not possible to check them manually. Automation relieves the worker from a monotonous job. This will help the manufacturer produce more and reduce the cost to the consumer, which in turn spurs market growth and investment in another machine. So the same worker is skilled up to operate that new machine which comes in,” he explained.
Traceability The automation system can even trace the genesis of an error. It is a solution that OMRON provides and includes sensors, switches, scanners, RFID tags, vision, etc. But traceability is more than that. Traceability can give the life history of a particular component, from the time it was melted and produced in a foundry till it is used in a car. All the processes it has gone through, all the sub – assemblies or the components that have gone into it and AutoPartsAsia | SEPTEMBER 2015 | 49
SPECIAL REPORT
their history are recorded in a server, to be retrieved when needed. With the advancement in technology it is possible to mix the process data and the vision data and tag them all together. Gandhi explained the availability and application of this kind of process data with the example of a car engine assembly where multiple actions, activities and components go inside. A lot of it is visually inspected for absence or presence. Even if it is present, the image is taken and stored along with the serial number of the engine and together with all the relevant process parameters like, torque, temperature, etc. In case the engine of that car being used by a consumer develops a fault a year later, the car manufacturer can track back from the car to the engine and then by looking at the images and process data try to figure out at least some cause of the problem without actually having to open the engine. Thus, speeding up the issue rectification and possibly improving customer satisfaction. These process data can also be used for statistical analysis of the machining centre and even help the designers take corrective action. The design for manufacturing, assembly and after-sales can 50 | AutoPartsAsia | SEPTEMBER 2015
be integrated. It can help the manufacturer take corrective action and do a Plan Do Check and Act (PDCA) to develop a better product. Normally manufacturers have to store huge amount of data to trace back to the genesis of a problem and they spend huge amounts of money for servers and other things. Millions of terra bytes of data are getting into the system. But the important aspect, according to Gandhi, is that “the industry needs to focus on how to make sense of all of these, how can they be used in a meaningful fashion? It is a lot of information and unless we find a way to make knowledge out of that information we are going to drown ourselves in it without reaching to any conclusion�. The biggest amount of data is consumed by images. A typical image can be anywhere between two to four MB. While the company has a compressing format of its own which helps reduce the storage-size of the image, there is still a lot of big data all around. However, the cost of managing data has been coming down year on year. To a question how can the company help the suppliers collect data and the problems associated with it, Gandhi said, for OMRON,
the task has been made simpler by a Programmable Logic Controller (PLC) that can write and read data directly to and from an SQL database. Typically, this was done using an OPC server. But OPC servers severely limit the amount and speed of data that can be transmitted through. Besides, they may also require specialist IT support to operate and maintain. On the other hand, the company’s PLCs can directly connect to an SQL database on a server and perform read/ write of data. This data can include images as well since its vision controller can also directly communicate with the SQL server. If server connectivity is not possible, data can be extracted, from the PLC, on a simple Secure Digital (SD) card. Once it is on an SD card, it is a simple matter of putting it on a PC or a server. There are many possibilities to use this data; the users, the people who are making these parts or people who are manufacturing these items, are the ones who can see immense possibilities in this. Gandhi said that in the automotive sector, OMRON has also been doing significant work for the tyre industry, battery manufacturers and other such ancillary suppliers to the automotive industry. “For one of the largest
tyre makers in the country, we figured out after discussing with the customer that the presence of a foreign object on the tyre rubber belt during the production process can lead to tyre failure in the running condition. It is a possible human safety issue. So we developed a solution for them to detect those foreign particles; when the foreign particle is detected, they get an alert and can take corrective action. It not only makes a lot of sense from a productivity and quality improvement point of view but it can also enhance the safety of the automobile users,” he said.
Automation Cost Automation is a business investment. What is important is to look for the right cost rather than low cost. “I think instead of low cost we need to look at the right cost because like everything else in business this is an investment. If buying a cheaper sensor gives you the required returns then by all means it can be bought as there is no need for a smart sensor for that. It doesn’t make sense at all because it is just adding to the cost. If buying something cheap compromises quality or results in intermittent working of the sensor then that is a problem. Right costing is a AutoPartsAsia | SEPTEMBER 2015 | 51
SPECIAL REPORT combination of multiple factors, right design on the machine, right selection and the right vision (for the future),” Gandhi said. OMRON caters to the multiple facets of manufacturing like fabrication, casting and forging, where there are millions of applications. About the methodology of meeting the needs of multiple domains without having a deeper knowledge of each of them, Gandhi said, while we do have some people with industry backgrounds, it would not be possible to have domain knowledge of all the industries as well as the people connected with them have. “Someone who is running a foundry knows the process best. What we do is we approach the customer and ask him ‘What is the biggest challenge you have for productivity or quality? What is it that you would like to improve in your processes?’ A few questions like that. Once we know the challenge we can suggest solutions based on our experience since many of these challenges and solutions remain the same across different industries,” he said. The company, for example, provides solution for the specific problems of the customer like ensuring a label on the cap. “We have solutions that detect whether the label is there or is missing or if it’s printed and affixed properly or not. From the automation point of view, the concept is the same whether the can contains beverage or lubricant. Another important aspect in proposing any such solution is ‘how much uncertainty can we reduce’? One of the ways, for us to reduce the uncertainty is to use our Automation Centre in Mumbai, which we opened last year, where we have, among other things, a test lab. We can run tests on the sample and tell the customer what we can do with this configuration. There are many variable factors like variants of vision cameras, variants of lenses that go with them, the speed at which the component is moving, light sources and the ambient lighting, etc. And you could go wrong in any of these. We try to minimise that uncertainty by taking a sample. We check it out, and then tell the customer what we can achieve (and how) and what can’t be achieved enabling the customer to take informed decisions.” The automation centre has a lot of other components besides the vision lab. Customers are allowed to see them and even have a live demo, like a 24/7 exhibition. There is a connectivity lab to build and test connectivity solutions. OMRON technicians will develop the solution, show it, prove it and give it to the customer. There is an application centre too where the customer can come and simulate his programmes. It also has delta and SCARA robots where sample tests can be run for the customers. Thus the 52 | AutoPartsAsia | SEPTEMBER 2015
uncertainty in the development process is reduced, even eliminated. ”It is very difficult for a customer to spend a few lakhs on just a hunch that something might work. Using our automation centre, we’re trying to reduce, if not eliminate, this uncertainty by providing some practical data points for the customer to take decisions’’, Gandhi said.
Service Support OMRON has remote diagnostic tools that can be used by the company, the customers and OEMs to track the performance of these systems. However, remote diagnostics is not very popular in India yet. For most people the company’s product would not need much of a service support. “We do have a lot of people to provide service support and backup, our own people and also our channel partners who have their own staff to provide support. We have close to 80 channel partners in 40 locations across the country,” Gandhi said. OMRON has manufacturing facilities in Japan, China, Thailand, Malaysia, Netherlands, and the US. The company follows a feeder factory concept globally; for some components there are multiple factories. It has about 200,000 parts or SKUs (Stock Keeping Units). “Though the frequently sold units are about 8,000 in our warehouse, in Bangalore, we hold at least 2,500 to 3,000 stock items at any point of time. They keep varying depending on input and output but typically that is the operation we have and we’ve developed systems to handle them”, he said. About the Indian market Gandhi said that “We are in a sweet spot because we have a demographic dividend, we have a population that is coming more and more into the work bracket and we have a large, growing middleclass coupled with massive urbanisation. So while a lot of deprived people are moving up, the middle-class has more disposable incomes and so the consuming class is increasing. They are the ones who are buying new cars, new phones, etc. They are the ones going to the supermarket and buying stuff offthe-shelves and even ordering on line”. “All these, in one way or other, are touched by OMRON. You buy a new car, it has probably been ‘touched’ by the company somewhere, you service your car and the car company puts in a new spare part; there is a business coming back to us. When you pick up packaged water, a cola or a biscuit packet in a supermarket, somewhere down the line it is connected to OMRON. So we are actually touching lives. Though not that visible, however we are touching a lot of lives by being present in a lot of critical processes and this is what is our corporate motto as well”, concluded Gandhi.
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PERSPECTIVE
Make In India - Will Make It Happen ‘Make in India’ The ‘Make in India’ campaign of Prime Minister Narendra Modi, that encompasses a gamut of initiatives to promote investments and growth in Indian manufacturing, has invigorated the domestic and the global industry. This has certainly brought in much needed focus and impetus for reforms related to the manufacturing sector. Several of the leading Indian auto component players have announced expansion plans which include: This will lead to the further strengthening of the automotive supply chain in India. The autocomponent sector is one of the 25 sectors that the Government of India
By Vinnie Mehta
T
he automotive sector has emerged as a bellwether of the Indian economy. The coming of Suzuki Motor and Honda Motor to India in the mideighties saw the dawn of a new era in the Indian automotive industry. The auto component sector has come a long way in terms of size, scale and quality. Today many component players have crossed the $1 billion mark in turnover and many more are close to the mark. India has become an attractive destination for component manufacturing and has absorbed world leaders like Bosch, Magnetti Mareli, ZF, Delphi, Honeywell, Denso and many others. With high skill levels and a competitive environment, many of the global leaders are considering India not only as a manufacturing destination but also as an engineering and R&D hub. The well-developed Indian auto component sector produces a diverse portfolio of products which include engine parts, drive transmission and steering parts, body and chassis, suspension and braking parts, equipment and electrical parts, besides others which are best in class. 54 | AutoPartsAsia | SEPTEMBER 2015
Company
JBM
Wheels India
has identified to push through its Make in India campaign. First, the Government has taken several radical measures towards ease of doing business in India. It has initiated the process of use of technology, convergence and integration of departments across sectors. Such measures will make India a much better place to invest, create jobs and wealth, and enhance production and productivity. Second, the government has invited a wide range of sectors for foreign direct investment (FDI). Already, it has allowed 100 percent FDI in Railways; deregulated the defence sector to the extent that 60 percent of the items now do not require
Investment Amount in INR Crore (approx. value) 200
70
Towards Expansion of facilities and focus on new projects automation, process changing, new product development and capacity expansion in aluminium and non-wheels business
Rane Group
220
Capacity expansion in Haryana plant and expansion of its hydraulic business in Chennai. Will also expand the air bag business unit at Singaperumal kovil near Chennai
Lumax Industries
300
to augment capacity over next five years
Motherson Sumi Systems
932
capacity expansion and building new office facilities
Minda industries
Uno Minda
RSB Group
450
New products, and betting on future demand growth. Earmarked 150 crores for four plants to expand lighting business
700-800
Investment planned over next 3 years. Rs 200 crore set aside for acquisition in Europe. Doing a feasibility study for an alloy wheels plant in Bawal in Haryana
60
Set up state of the art facility in Sri City
Turnover - Auto Component Industry: 2010-15 Turnover - Auto Component Industry:CAGR: 2010-1511% CAGR: 11% 35.9% 2000
2160 (39.7)
2046 (42.2)
2117 (35.1)
30%
1883 (41.3)
25.3% 1500
20%
1386 (30.8)
11.1% 1000
of the industry was possible because of frugal engineering, a key strength of the Indian auto component manufacturers. Over the years, the component industry has developed strong manufacturing capabilities that have helped in keeping costs low and meeting stringent global quality norms. One must also appreciate the handholding of the component sector by the OEMs in adopting the global best practices.
40%
2348 (38.5)
10%
8.7% 5.6%
500
Growth Rate in Rupee Terms
Turnover in INR’ 00 Crore (USD Billion)
2500
0%
-2.0%
-10%
0 2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
(Turnover includes supplies to OEMs, aftermarket sales and exports)
Third, the Government is marketing the identified 25 sectors, including the automotive and auto components, across the world. Fourth, the central government is working in partnership with the States to become change agents. Fifth, there is a focus on improving and enhancing infrastructure. Industrial corridors, manufacturing cities and industrial clusters are proposed to be developed. All these measures 2 augur well for the automotive industry.
Healthy Growth Propelled by the positivity of ‘Make in India’ campaign, the auto component industry witnessed 11 percent growth, its highest in last four years, and registered a turnover of Rs 2.34 lakh crore ($38.5 billion) compared to Rs 2.11 lakh crores ($ 35.13 billion) in 2013-14 with a healthy CAGR of 11 percent over a period of six years. The growth was led by rising consumption by the domestic OEMS, and exports, especially to Europe, the US and to other Asian countries. It is interesting to note that when the overall exports of India declined
by 1.2 percent, export by the auto component industry grew 11.4 percent to Rs 68,500 crore in 2014-15
Automotive Mission
The Automotive Mission Plan 2016-26 (AMP 2026) is the collective vision of Government of India and the Indian
Exports - Auto Component Industry: 2010-15 CAGR: 29%
900
80%
60.7%
Growth Rate in Rupee Terms
licensing. It has enhanced FDI in defence manufacturing and has liberalised the construction sector in a major way. Railways, Defence and Construction equipment hold attractive prospects for the auto component industry. Significant investment has already been announced by several global OEMs to expand the manufacturing base in India.
Turnover in INR’ 00 Crore (USD Billion)
1
685 (11.2) 614 (10.2)
40.7% 600
40%
526 (9.7) 427 (8.8)
23.3%
303 (6.7)
189 (4.2)
300
16.7%
11.4%
0%
-19.3% -40%
0 2009-10
2010-11 Africa 7.28%
Oceania 0.75% Europe 36.39%
Asia 25.29%
2011-12
2012-13
Latin America and the Caribbean 7.04%
North America 23.25%
from Rs 61,400 crore during 201314, registering a CAGR of 29 percent over a period of six years. The Automotive Component Manufacturers Association of India (ACMA) has played a pivotal role in supporting its members in export development and in discovering new market opportunities. Currently it exports to more than 160 countries, which has been growing at 15 percent a year. The consistent growth in auto component exports is a clear indication of the growing credibility of ‘India Made’ components in the global auto supply chain. The impressive performance
2013-14
2014-15
Exports Destinations: Top 10 Countries USA
22.35
Thailand
Germany
7.51
Brazil
3.38 3.37
Turkey
6.49
China
3.07
UK
5.43
UAE
2.95
Italy
4.79
France
2.92
Automotive Industry outlining the growth trajectory of the Vehicles, Autocomponents, and Tractor industries for the next ten years in terms of size, contribution to India’s development, global footprint, technological maturity, competitiveness, and institutional structure and capabilities. According to this the Indian auto component industry may attain $223 billion in revenue by 2026, with exports in the region of $84 billion. As the automotive industry is emerging as the engine of India’s economic growth, its future is very bright. (The author is the Director General of ACMA and views expressed are personal.) AutoPartsAsia | SEPTEMBER 2015 | 55
INSIGHTS
There is proven relationship between effective on-the-job training and employee’s performance, job satisfaction, loyalty and intent to stay with a company.
Invest In Employee Skill Development By Louis P Rumao
C
hina’s emergence from a mere three percent share of global manufacturing in 1990 to the current 25 percent is marvellous by any standard. Many countries are trying to imitate China’s achievement. The two main ingredients that made the Chinese marvel are the foresight of the national leaders to upgrade infrastructure, (roads, railway, waterways, power, ports, airports and telecom) and to emphasize on vocational training. More than seven million vocationally-trained high
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.
56 | AutoPartsAsia | SEPTEMBER 2015
school students graduated to enter the manufacturing sector as trained production workers. Countries trying to imitate China’s manufacturing achievements need to pay special attention to these two factors -infrastructure and skill development. In many industries there is a skill gap. It means that “workers with the skills the employers want are not applying for jobs at the salary and benefits being provided.” Just because employers say they cannot find workers with specific skills does not mean that those workers don’t exist. In fact, they do! However, employers and governments can help bridge the skill gap. Employers need to institute and enhance training and apprenticeship programmes. Governments should spend more to support `dual-track’ high school and post-secondary industrial education. Traditionally, employers have been responsible for
developing the skills of their employees. However, this responsibility has been shifting. Some employers continue to invest in training. In many sectors job seekers and education providers take this on. This shift has produced a labour market catch-22 situation. Employers are looking for workers with work-ready skills to fill good-paying, available jobs. But not all are providing needed and adequate training. As a result, job seekers face the daunting task of locating opportunities for work, identifying the skills they need to get those jobs and finding out where to learn those skills from. Individual companies cannot do much about public education system and even less about their country’s infrastructure. But they can certainly train their employees to improve productivity and job satisfaction! Organisations commit to training for different reasons like improving product quality, introducing technology
to gain operational efficiency, reducing errors, etc.
Training Cost Hiring and training a new employee can be very expensive, undermining profitability. Hence it is important to consider employee retention efforts to help curtail unseen costs that come with the new employees. The costs to replace employees vary with their earnings level. One study estimated the cost to replace a $8 per hour employee averages about $5,500 per turnover. Executive positions, which are well-compensated and likely to have stringent educational
credential requirements, have higher turnover costs than jobs with low educational requirements. Very highly-paid jobs and those at the senior or executive levels tend to have disproportionately high turnover costs as a percentage of salary, sometimes exceeding 200 percent of annual salary. In the US, one estimate suggests that the private sector spends over $100 billion a year on training, while the Federal Government spends $3.4 billion. This does not cover even one percent of the 165 million workers who could benefit from training. In 2013, organisations,
on an average, spent $1,208, and 31 and half learning hours on each employee for training. Yet capturing the training cost per employee is only the initial step in quantifying the value of training. From there, it is necessary for the management to analyse the effectiveness of training by identifying operational results, if any, that training had on employee performance. To evaluate more completely the return-on-investment for training, top executives must work with department managers to determine the impact of improved employee
performance on business results. For example, if recent training improved employee performance by reducing errors made by production workers when assembling a product, it may be possible to quantify the savings in rework and gains from customer satisfaction.
Assessment Methods The top three methods used frequently for employee development are generic training, cross-functional training and leadership training. They use different delivery methods. Most of the formal training programmes take place
in an instructor-led classroom. But the growing trend is online training, either self-paced or led by an instructor. If the employers want the employees to feel that the training was relevant and a valuable experience and to feel good about the instructor, the topic, the material, its presentation, and the venue, then it is the management’s responsibility to measure what the trainees have learned and how this training has benefited the company’s bottom line and employees’ job satisfaction. Assessment of every training programme is critical to
determine the effectiveness for employees, and benefits to the company. Successful companies maintain up-todate listing of each employee’s qualifications, experience, past training and future training needs. The results will depend on relevancy and especially how employees apply the training in their duties. When properly planned and implemented, on-thejob training will not cost the company but will add to the bottom line! NB: Photos used for representational purpose only. AutoPartsAsia | SEPTEMBER 2015 | 57
INSIGHTS
Hydrogen-Powered Selfdriven Vehicles On The Anvil
are in place to reduce dependence on fossil fuels. Consumers are weary of constantly changing price for petroleum-based fuels due to unpredictable factors such as tariffs, taxes and political situation in oil-producing countries. Alternatives are being marketed, but their acceptance is too limited to help reduce dependence on fossil fuels. The alternatives in the market are:-
By Louis P Rumao
F
or more than a century, automotive industry was on an evolutionary path. Engineers were slowly improving engine and ergonomics. Initially they powered vehicles and then improved safety and added comforts for occupants. Engines continued to use fossil fuel (diesel and gasoline), while becoming more efficient and reliable. But that was then! 58 | AutoPartsAsia | SEPTEMBER 2015
Now the industry is on the verge of unleashing changes that will eliminate both fossil fuel and human driver! Fossil fuels are nonrenewable resources. These fuels, when burnt in engines, emit greenhouse gases (GHGs), mostly carbon dioxide (CO2) that contributes to global climate change. Therefore, plans and regulations
• Battery electric vehicles run on an electric motor and battery. This offers them increased efficiency and is emissions-free if the electricity comes from renewable sources, such as solar and wind. Battery electric vehicles can use existing infrastructure to recharge, but must be plugged- in for extended periods of time, and have insufficient driving range on a charge. The cost of replacement batteries is also very high.
• Plug-in hybrid electric vehicles are similar to battery electric vehicles, but also have a conventional gasoline or diesel engine. This allows them to drive short distances on electricityonly, switching to liquid fuelled engine for longer trips. • Hybrids have conventional engines and an electric motor and battery, but can’t be plugged-in. These nonplug-in hybrids derive all their power from gasoline and diesel, and are not considered electric vehicles.
Fuel Cell Vehicles There is a widespread belief that hydrogen fuel cell vehicles (FCEV’s) may be the future! Very simply stated, a fuel cell converts hydrogen and oxygen into water, and in the process produces electricity, which powers the vehicle. A majority of
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INSIGHTS though they never plan to use them.
North Americans would love to get their vehicles off gasoline or diesel, but they aren’t eager to turn to electric vehicles, indicating that constantly having to charge a batteryelectric vehicle is a pain and unhappy with the limited driving range. The appetite for hydrogenpowered vehicles is strong, and 80 percent of people agree that they would like the government to provide more support for the technology. Two main hurdles stand in the way of mass production and widespread consumer adoption of hydrogen `fuel-cell’ vehicles: the still high cost of producing fuel cells; and the lack of hydrogen refueling network. Other hurdles are poor durability of the fuel-cell stacks and shorter driving range, which are expected to be addressed as technology advances. There are a couple of FCEV’s currently available in North America – Toyota 2016 Mirai and Hyundai 2015 Tucson, which is claimed as the first massproduced fuel cell vehicle and the first cross-over utility vehicle (CUV). Being new to the market, and high purchase cost, these two vehicles are not for outright sale, but only for lease. Right now, 95 percent of the hydrogen available in the US is either extracted from fossil fuels or made using electrolytic processes powered by fossil fuels, thus negating 60 | AutoPartsAsia | SEPTEMBER 2015
While most automakers are approaching autonomous cars incrementally, Google’s plan to remove driver from the equation totally will have dramatic effect on the industry. Google has stated that its goal is “a vehicle that could shoulder the entire burden of driving. Vehicles that can take anyone from point A to point B at the push of a button.” any real emissions savings or reduction in fossil-fuel usage. Even then, taking into consideration the emissions created during the production of hydrogen fuel, it is claimed that driving a Hyundai Tucson FCEV for example, will result in 40 per cent less greenhouse gas emissions than driving a comparable gasoline-powered vehicle on a well-to-wheel basis. A FCEV reportedly will emit fewer air contaminants that result in smog and acid rain, demonstrating a direct benefit to air quality in densely populated cities. Only if renewable energy sources can be harnessed to provide the energy to generate hydrogen can the dream of a truly clean hydrogen fuel be realized. The hydrogen refueling infrastructure also must be developed to support the expansion of FCEV usage. All automotive manufacturers, governments, the hydrogen industry, and citizens need to join in this initiative to make FCEV’s a practical reality. The cost of building a hydrogen infrastructure, comparable to the current petrol and diesel supply, that will allow a significant number
of hydrogen cars, could be as high as one trillion dollars. The time to construct the infrastructure, as long as four decades! The cost of the FCEV cars also is high. With platinum as the most widely used catalyst in the fuel cells, the price of a single fuel cell vehicle is currently more than $50,000. Other catalysts are being developed which will probably be less expensive than platinum, but nobody knows how soon they’ll be available for large-scale use.
Driverless Cars There is a new automaker in the world – Google Auto, LLC - formed in 2011, with a different vision – no driver needed! It is registered with national and international organisations as a passenger vehicle manufacturer. In 2014 it was licensed as a car maker in California, and immediately afterwards it began to build 100 prototype self-driving electric cars from scratch, without steering wheels, accelerators or brake pedals. However, California officials balked at the absence of those essentials, so Google Auto agreed to add them,
Google’s self-driven cars have logged over 1 million miles and are currently out on the streets of Mountain View, California and Austin, Texas. Their testing fleet includes both modified Lexus SUVs and new prototype vehicles that are designed from the ground up to be fully self-driving. Google Auto has applied for the international vehicle identification number (VIN) codes that will identify each new self-driving car, just like any other production vehicle. Google has notified the US National Highway Traffic Safety Administration that these prototype cars are exempt from the majority of safety standards and crash testing requirements because they are low speed vehicles (LSVs) that can go no faster than 25 mph. Although Google’s ambition may be to go all way – from research to production, ultimately, it may partner with one of the world’s major car manufacturers for full-scale production and marketing. The fully autonomous technology may help reduce and even eliminate highway accidents. But it is to be seen, whether the public is ready to hand over full control of their vehicles to some new technology.
FOCUS
Benecke-Kaliko Makes Plush, Cosy, Eco-friendly Surface Materials For
Vehicle Interiors
Ground breaking ceremony at Changzhou
By Sharad Matade
T
he Hanover-based Benecke-Kaliko AG is part of the ContiTechGroup and a group company of Continental AG. Its core expertise is in the area of automotive interior trims. This new surface material looks and feels like leather. It is handtoolable, sewable, environmentfriendly and allergen-free. In the price-conscious Asian markets, where mileage and
performance are the key parameters to select a car, consumers are becoming choosy about its interior looks and comfort-level. Owing to the consumer preference for interior looks and the global automotive trend for light weight and environment-friendliness, OEMs are concentrating more on the interiors of vehicles. And to tap this opportunity, Benecke-Kaliko AG is creating more innovative solutions.
Benecke-Kaliko is a market leader in surface materials for automotive interiors, especially for instrument panels, door panels, pillar trims, floor consoles, seating systems and sun visors. The company develops and produces at seven locations in Germany, China, Mexico, Poland and Spain. In North America, South America, Asia and Europe, the AutoPartsAsia | SEPTEMBER 2015 | 61
FOCUS After all, interior surface materials are highly individualistic and must reflect the character of the OEM, the model and of the vehicle buyer too. This is one of our strengths, and we feel at home here
company has 16 international representations. It has the India sales office in Pune.
New Plant Benecke-Kaliko has been in the Chinese market for decades and the market accounts for a large share of its global turnover. The company is building its second plant in Changzhou, China, to produce environment-friendly, low emission and allergen-free automotive trim material `Acella Eco’. “The customer demand is high because we offer optimum solutions for their requirements. We are highly innovative and extremely reliable. We place great value on quality and develop tailor-made solutions. As we are in such great demand, we are boosting our presence in China with a new plant in Changzhou, close to our existing plant and many of our customers,” Dr Alexander Jockisch, Executive Director, Business Development and Marketing, Benecke-Kaliko AG, told AutoParts Asia. The company will invest €40 million in this plant, which will produce 10 million square meters of Acella Eco products 62 | AutoPartsAsia | SEPTEMBER 2015
a year and will cater to the Chinese market. The German company is continuing to expand both production and local skills in its decade-old plant in Zhangjiagang. “China is developing into a market that has significant influence on other markets. Reasons for this include the strictest interior emission requirements in the world, and the influence of Chinese customers on global interior design,” he said. The Zhangjiagang plant has production capacity of 10 million square meters annually. It produces Polyvinyl chloride (PVC) foam laminate, PVC-expanded leather and Thermoplastic polyolefin (TPO) compact foil and foam laminate. Even in price-sensitive markets, Benecke-Kaliko does not find it difficult to do business as price is overlooked for luxury. “With our broad portfolio ranging from luxury surface materials to materials for cost-conscious customers, we have the right solution for every requirement. The focus is on comfort as well as on the environment-friendly and healthy properties of our products,” Dr Jockisch said.
Asian Sensibility “Asia may have a different image from Europe in terms of pricing. But this is not reflected in reality. The important thing is to know what the customers
want and then to offer the right solutions, including added value. There are certainly more vehicles in the compact segments in Asia. We have to offer products which are different from those for vehicles in the luxury segment”, he said. For this reason, Benecke-Kaliko takes different customer wishes into account in the development stages of the surface materials and keeps a close eye on them. “After all, interior surface materials are highly individualistic and must reflect the character of the OEM, the model and of the vehicle buyer too. This is one of our strengths, and we feel at home here,” Dr Jockisch said. “Production of environment-friendly surface materials does not have to be cost-intensive if the customer needs are kept in mind right from the start,” he added. “Harmony in the interior plays an important role in all price segments. Within the context of fuel-saving and stricter emission limits, lightweight engineering is the latest trend. The lowest possible emission level and good air quality are important even in the interior,” Dr Jockisch said. Softness of the surface materials is also becoming very important. Benecke-Kaliko is seeing the trend towards individualisation – as in so many other areas of day-today life. “Besides all these factors, increased practicality is required, through anti-soiling
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FOCUS properties, better cleaning behaviour, or reduced scratch sensitivity,” he said.
Ecological Challenges Changes in the laws regarding emissions from the vehicle interior create new challenges,
Making standardised products need standardised raw materials. According to the Benecke-Kaliko executive, all the materials used by the company stand out on account of their environment-friendly and healthy features and most of the products can be certified to the `Eco-Tex Standard 100’, if required. All its products are free of carcinogenic, mutagenic, reprotoxic (CMR) substances. “We closely monitor the ever stricter environmental regulations all over the world. We can anticipate them and adapt our products and production methods accordingly from an early stage,” he said. Stricter Volatile organic compound (VOC) requirements and shift from lightweight surface solutions to ultra-lightweight solutions are likely to be introduced in the near-term, he added.
particularly in Asia. New regulations in China, Korea, and Japan, for example, lead to new requirements for surface materials inside vehicles. “We were able to help with establishing standard measuring methods for the Chinese vehicle market to test air quality; in the meantime these methods have proven themselves in Europe and in the US. Using the right method helps save time and cost over the entire development and supply chain processes,” Dr Jockisch said. The company has been developing low-odour and low-emission products for many decades, and has more than 30 years of experience in measuring pollutants in vehicles. 64 | AutoPartsAsia | SEPTEMBER 2015
The challenges for BeneckeKaliko include ever shorter development times, more and more models, an increasing number of variants, and their increased complexity, he said. More and more vehicles are being designed in such a way that they are popular with customers around the world. “This results in much more complex factors of cultural influences that have to be taken into account. This also affects design, which must have global appeal. And global availability is becoming increasingly important for our products. Technical requirements are also becoming more demanding”, he said. The larger markets are opening greater opportunities for Benecke-Kaliko. The ‘feel-good’ factor in the interior is becoming a very important consideration – for the vehicle buyer and thus for the manufacturers. “In future, functionalities will be integrated into the decorative surfaces. This presents a great opportunity for us. We started development work on this aspect very early,” Dr Jockisch said.
The main concern of the company, while developing surface materials for interior, is the optimum implementation of customer wishes, environmentfriendliness, and production of high-grade materials with consistent quality in all the plants. “We create progress for more value (the value of better interior) and are set up on a broad base ready for new markets and tasks,” he said.
For The Market About the financial and technical challenges for Benecke-Kaliko to develop products for economic vehicles, Dr Jockisch said, “We have the respective products in our portfolio. Here too it is important to understand what each customer values. Then a joint solution can be found. We are constantly expanding our global network of production and skills – in line with our philosophy, `In the market for the market’, he said. The company had announced that it would be focusing on meeting manufacturers’ and drivers’ specifications in truck and bus segments. “The general trends are basically the same as in passenger cars, although the emphasis is different. Lightweight engineering, comfort, low emissions, sturdiness, and scratch resistance are in demand here also. Do not forget that this segment is extremely price-sensitive,” Dr Jockisch said. Benecke-Kaliko has been active in India for many years and has been supplying its products to the Indian and foreign vehicle manufacturers. “Chintan Kanakia, our Pune-based country manager, and his team are important local contacts for our customers”. The company thinks the market volume in India is not large enough to have local production facilities. “But this will certainly change as the market volume increases,” Dr Jockisch said.
BRAND TRENDS APA Bureau
D
ESMA, the mechanical engineering enterprise based in Fridinger, Germany, is celebrating this year its 50th year of operations. The company, which started in 1965 with seven employees in an operating space of 200 sqm, has today over 500 employees who meet the requirements of the rubber and silicone processing industry in an area of around 30,000 sqm at five production locations in the most important economic regions of the world. With an international sales and service network, DESMA is close to its customers all over the world.
DESMA Celebrates 50 Years Of Shaping Ideas For Future
DESMA produces turnkey, resourcefriendly system solutions for the production of technical rubber and silicone-moulded parts. ``With innovative technologies and comprehensive service we meet the needs of the elastomeric processing industry. DESMA machines manufacture products used in automobiles, ships, power plants and medical appliances”, Managing Director, Martin Schürmann, said. With over 70 years’ experience in sophisticated machine and mould engineering, DESMA provides premium solutions for elastomeric processing. ``To this end, we finetune the DESMA injection moulding machines, moulds and automation systems and create competitive advantages for our customers’’, he said. The company develops technically perfect system solutions for the safe, efficient and profitable production of rubber and silicone parts. It has the capability to offer everything from one source, and every DESMA machine has the complete know-how, from research and development, consulting and project engineering to design and production.
DESMA India factory in Ahmadabad was started in 1996. State-of-art vertical rubber injection moulding machines are produced here as ALPHA and SIGMA series. The anniversary celebrations of DESMA are guided by the motto: ‘50 years shaping ideas for your future’. “It will accompany us through this year of anniversary and simultaneously provide us with the courage, confidence and inspiration to add many more chapters to a manifold corporate history”, Schrumann said. The company marked its 50th anniversary at the recently-held International Rubber Conference (IRCand DKT) in Nuremberg by showcasing two DESMA injection moulding machines of the S3 series presenting new inspiring and convincing solutions which will increase the efficiency of elastomeric processing companies. These companies will be able to achieve above-average growth in terms of quality and quantity by using the service and technology of DESMA. More than 550 guests attended the formal 50th anniversary celebrations of DESMA in Fridingen. The guests included the Finance and Economy Minister of the State of Baden Württemberg, DrNils Schmid, the District Administrator of Tuttlingen, Stefan Bär, the Mayor of Fridinger, Stefan Waizenegger, the members
of the Federal and State Parliament, Volker Kauder and Guido Wolf, and the representatives of the holding company, Salzgitter AG, represented by Professor Fuhrmann, Kieckbusch and Professor Niemeyer. There were also guests from business, politics and academia, customers, suppliers, retirees and partners in addition to the staff and delegations of the four subsidiaries from 16 countries that accompanied DESMA during these 50 years and assisted its progress. The Mayor of Fridinger, Waizenegger, then named the yet unnamed access road to DESMA as `WalterSchatz-Straße’, after the founding director and first Managing Director of DESMA who died last year. His daughter, Regina Verheyen, was also present. There was a reunion with five of the very first employees who took the stage to receive symbolically the DESMA anniversary ribbon `Chronicle 1965-2015’, on behalf of all the employees, from the Managing Directors Schürmann and Zebedin. On behalf of the employees of DESMAN, Schürmann thanked all business partners for the many years of loyalty and good co-operation. He told the customers of the company, “We are particularly proud of you, because over the years we were able to play our part in ensuring that your growth with us was above the industry average.” AutoPartsAsia | SEPTEMBER 2015 | 65
BRAND TRENDS
IP Rings Wears Innovation Hat APA Bureau
I
P Rings Limited (IPRL) a member of the Amalgamations Group, is stepping into its 25th year of operations with an aptly coined slogan ‘Innovate Today.’ Promoted by India Pistons Ltd, Simpson & Company Limited, Tractor and Farm Equipment Ltd and Amalgamations Private Ltd in technical and financial collaboration with Nippon Piston Ring
Co Ltd of Japan, the company has been focusing on innovation since inception in 1991. Imbibing the culture from its principles and aligning its focus with its collaborator who is a world leader in the manufacture of piston rings and other powertrain components, IPRL has been pioneering in new technologies, especially in coatings at the critical moment when the Indian automotive industry was expanding and was looking for new technologies. It may be recalled that IPRL pioneered the concept of steel piston ring in India, which has since been accepted by OEMs in the country. The company’s core strength lies in surface engineering, plasma spraying, chromium plating, gas nitriding and salt bath nitriding. It has been supplying rings to passenger cars, utility and commercial vehicle manufacturers. First to provide the improved ‘Nifflex” technology in the late 90’s followed by 3 pc Oil Rings (Nifflex– S and H type design), it is the first to introduce ASP (All Steel Pack) designs for the two wheeler industry (in 2012), which helped in reducing friction thereby improving performance. 66 | AutoPartsAsia | SEPTEMBER 2015
According to the Managing Director of the company, Ram Venkataramani, IPRL along with India Pistons Limited has been the first component maker in the country to establish accredited test beds for testing and validation of engines. It has specialised Technical Centres in their companies where several internal ideas and concepts are validated and specific solutions provided to their customers. There have been instances where they have tapped into the vast engineering knowledge available with India Pistons Ltd and Simpsons to provide solutions to customers not necessarily related to their scope of supply alone. This is an example of one its core beliefs – ‘relationship and solutions beyond business.’ Currently the company has in its possession several technologies that will help OEMs meet the emission standards up to Euro 6. India is presently at BS IV (Euro 4 equivalent) and plans to improve it going to Euro VI by the turn of the decade. PVD Rings are generally applied on engines with higher output range starting from 90 kilowatts per litre and for engines with higher P Max – peak firing pressures - of 200 bars. IPRL introduced the concept of LFR (Low Friction Rings) to the Indian Market since 2013.Several car makers like MSIL, HMI and Ford India are successfully using this product. The innovation culture has progressed in the cold forging division as it introduced orbital cold forging in 2001, which helped the company to provide ‘miniaturisation’ and ‘near net shape’ solutions to its customers to meet light weight targets and improved NVH. The company is working on the lines of the ‘Make in India’ campaign, by making world class products, for the global and Indian Market, across Industries, he mentioned. One of its latest innovations in Piston Rings has been, “the HPPD (High Performance Physical Vapour
Deposition) and HDPD (Heavy Duty Physical Vapour Deposition), a feature yet to be mastered even by some of the global majors. Aimed at bringing the stringent US EPA – CAFÉ norms for fuel efficiency with higher performance, this will propel IPRL to the best in class environment enhancement partners for the auto industry and a force to reckon with by any standards on the global platform,” he said. Venkataramani who is an engineer himself and his team looks highly charged when their engineering minds are triggered to innovate – the great Indian ‘jugaad’ mindset, but with a mind towards global technologies.
SaaS in Manufacturing “Innovation is not only a way of life here, but also an enterprise. IPRL has been doing research into ‘Frugal Engineering’ of their Manufacturing space by bringing the SaaS model into the production shop-floor with their in-house developed ‘maQx’ program – a black box approach to managing operations in a highly sophisticated, IT-enabled environment which translates the customers’ requirements into each and every step of the production process while maximising equipment efficiency,” he indicated. The company has plans to install this in other companies of the Amalgamations Group before offering it to other companies in the manufacturing space.
GLEANINGS - India
Royal Enfield Arm To Sell Bullet In North America APA Bureau
R
oyal Enfield, the fastest growing motorcycle company in the world, has announced its first wholly- owned subsidiary in North America. This is in line with the international focus of Royal Enfield, now a division of Eicher Motors Limited, on expanding to the global midsized motorcycle segment (250-750cc), with North America as a priority market. It has been exporting motorcycles to North America for 15 years through an independent distributor. Royal Enfield is the oldest motorcycle company in continuous production, with roots dating back to 1901 in Redditch, England. Its current product line-up in North America includes the iconic Bullet 500cc, Classic 500cc and the Continental GT 535cc cafe racer ranging from USD 4,995 to USD5,995. Manufacturing will continue to be in Chennai, India,
where Royal Enfield has been operating since 1955. Global headquarters will continue to be in Gurgaon, Haryana, India. Royal Enfield North America is based in Milwaukee, Wisconsin. The leadership team is led by Rod Copes, President, who will be responsible for marketing, communications, sales, warranty, service, dealership development and finance across the US and Canada. Rudratej Singh, President, Royal Enfield, said, “Motorcycles and the riding culture is robust in North America and it is certainly a growth market for us. A whollyowned subsidiary company in the region allows us to be closer to our customers and enhance their product and ownership experience, with a wider footprint and robust aftersales service network. We are confident that with our current and future product line we will re-invigorate the mid-sized motorcycle segment in the US with motorcycles that are holistic in their approach and are great fun to ride, both in the cities and on back country roads. “Royal Enfield has been growing at over 50 percent year-on-year for the last five years. With a proven business
model, today we are one of the largest mid-size motorcycle manufacturers in the world. With our increased efficiencies and scale of manufacturing, we are strategically positioned to make effective business inroads into international markets, including the US,” he said. Siddhartha Lal, CEO, Royal Enfield, said, “Our motorcycles are inspired by the classic bikes throughout motorcycling history, in form and in simplicity; and they capture the feeling of freedom, fun and responsiveness that riders were trying to achieve then, and brings it into the modern context. Royal Enfields are possibly the most engaging mid-size motorcycles out there. We use traditional craftsmanship and modern technology as a means to achieve the perfect balance between the rider, the machine and the terrain.” Rod Copes, President Royal Enfield North America said, “In a post-performance era where American riders are looking for machines that are easy to own and maintain, Royal Enfield offers modern classic motorcycles, with timeless appeal. Royal Enfield’s first fully branded retail store in the US will soon be launched in Milwaukee that will retail its entire product line-up of motorcycles and gear. Over the next 18 months we plan to launch several such stores in key metropolitan areas across the US. We are also focusing on building a strong independent dealer network that will maximise our brand awareness and sales”. AutoPartsAsia | SEPTEMBER 2015 | 67
GLEANINGS - International
Nissan Pedestrian Alert System For eVADER As a leading partner in the eVADER project - which took three years to complete - Nissan drew on its EV expertise to integrate the range of technologies provided by itself and other consortium members into the demonstration vehicle, and worked to ensure that the sounds created were clearly audible. The sound created not only had to be directionally beamed at targeted pedestrians, it also had to keep annoyance levels to a minimum. Siren-like noises were ruled out at an early stage, as they were found to be irritating, loud and, in some cases, emotionally upsetting to other road users. The final version of the system features a camera built into the
APA Bureau
N
issan has taken a leading role in the European Commission-led project, eVADER, to create a pedestrian alert system for electric vehicles (EVs). In partnership with 10 other consortium members, Nissan has collaborated in the creation of a potential next generation pedestrian alert technology which produces effective and targetable audible cues to alert pedestrians and other vulnerable road users to the presence of a nearby EV, with minimal impact on noise pollution levels. Pedestrian alert technology is a hot topic, as growing sales of EVs have led to discussions over the pros and cons of quiet EVs. The low sound levels have been heralded as a strong benefit, as they could contribute to a drastic reduction in noise pollution. As one of the leading manufacturers in the EV market, and developer of the Approaching Vehicle Sound for Pedestrians (VSP), fitted as standard equipment to all Nissan EVs, Nissan
68 | AutoPartsAsia | SEPTEMBER 2015
has made this area of research a priority. David Quinn, Nissan’s e-VADER Project Leader said: “Pedestrian safety is of utmost importance to Nissan, which is why we have a pedestrian alert installed in our EVs as a preventative measure. As leaders in the EV market, we were keen to use our considerable experience to examine possible systems for future development in this field. Our objective has been to find an optimum balance between ensuring the cars are detectable, whilst retaining the reduction in noise pollution, which is one of the great benefits that our EVs offer.”
windscreen, which is programmed to recognise pedestrians, cyclists and other road users. On detection of a road user, six loudspeakers directionally beam sound at the target to alert them of the presence of the EV. The sound is up to five decibels lower than the sound of a conventional petrol or diesel engine vehicle.
Nissan has played a pioneering role in bringing EV technology to the mass-market. In 2010, the introduction of the Nissan LEAF – the first mass-market, all-electric EV launched globally – revolutionised the motoring world. It still remains the best-selling EV.
Nissan built this system into a Nissan LEAF for real-life trials, and the vehicle was used to showcase the completed alert system at a concluding event in Barcelona in December 2014, where it was wellreceived by the visually-impaired community.
GLEANINGS - International APA Bureau
T
he Historic Vehicle Association (HVA) joined automotive and 1915 World’s Fair enthusiasts recently to celebrate the 100 years of the Panama Pacific International Exposition (PPIE) and a century of road travel across America at the Palace of Fine Arts in San Francisco, the US. The occasion was made special by the arrival of a historic 1915 Ford Model T, after it travelled more than 3,500 miles, recreating the amazing cross-country journey that Edsel Ford, the only son of Henry Ford, took 100 years ago. The purpose of the trip was to elevate national awareness about the importance of America’s automotive heritage and the role of Ford Model T in shaping it. The HVA road trip was both a celebration and an important heritage fieldwork regarding the birth of a century of American road trips.
1915 Ford Model T Makes Centenary Trip
system and those early pioneers who experienced cross-country travel by automobile,” Mark Gessler, President of the Historic Vehicle Association, said. “The excitement and enthusiasm of all the people we met as we travelled through small cities and towns was a wonderful experience. The smiles, the memories and the Model T stories we heard made this trip very special,” he said.
HVA’s `Road Trip Century Celebration’ was launched on July 17, 2015 with a HVA driving team using a refurbished 1915 Ford Model T , similar to the one Edsel Ford drove, following his epic 1915 journey from Detroit to San Francisco. HVA collaborated with the Antique Automobile Club of American Library, the California Historical Society and PPIE100, to plan and recapture this amazing historical journey. In the summer of 1915, 21-yearold Edsel Ford and six boyhood friends were among the thousands of Americans that took to the road to visit the west and the world’s fair exposition in San Francisco. At the
PPIE, the Ford Motor Company had one of the most popular exhibits at the fair -- a working Model T assembly line that produced about 18 cars each afternoon and more than 4,000 Model Ts during the course of the World’s Fair. The whereabouts of the original Edsel Ford Model T is not known. The PPIE was widely promoted and provided the impetus for many automobile owners to make adventurous cross country tours using early `National Highway’ systems from east to west. “The trip has provided the HVA team with a greater appreciation of the development of our national road
Throughout the journey the HVA met with historians, heritage specialists, preservationists and academic experts to help trace the origins of the American road trip. Edsel Ford’s trip was extremely well documented with nearly 200 photographs and daily journal entries. The HVA considers it one of the most well documented early American road trips done purely for pleasure. He travelled through developing roads that were deemed `drivable’ at the time. And, for the first time, one could consider a crosscountry trip in an automobile. “Edsel Ford’s cross-country journey is symbolic of how the PPIE brought out the amazing spirit, enthusiasm and innovation of so many people,” Phil Ginsburg, General Manager of the San Francisco Recreation and Parks Department, which is overseeing the City’s PPIE100 celebration, said. AutoPartsAsia | SEPTEMBER 2015 | 69
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GLEANINGS - International
APA Bureau
T
he Chassis & Safety and Tyre Divisions of the international automotive supplier and tyre manufacturer Continental AG are partnering with the Global New Car Assessment Programme (NCAP) in the ‘Stop the Crash’ information campaign. It is an initiative of Global NCAP, the London-based umbrella body of the worldwide NCAP consumer organisations, for new car safety testing. The Global NCAP ‘Stop the Crash’ campaign will be officially launched on November 18, 2015 with a driving demonstration to coincide with the 2nd Global High-Level Conference on Road Safety in Brazil. The motto
Continental Joins Global NCAP for ‘Stop the Crash’ campaign of this meeting of world political leaders, fleet managers and the media representatives will be ‘Time for Results’. ANCAP, Asean NCAP, China NCAP, Euro NCAP, Japan NCAP, Korea NCAP, Latin NCAP and US NCAP and the Insurance Institute for Highway Safety (IIHS), define the standards that vehicles must meet to be awarded top safety rating of five stars. In Europe, crash avoidance and mitigation systems such as adult and child occupant protection systems, pedestrian protection systems and assistance systems such as Electronic Stability Control (ESC), Autonomous Emergency Braking Systems (AEBS), and Adaptive Cruise Control (ACC) systems are a basic requirement for achieving this rating. “We have been pursuing our longterm strategy ‘Vision Zero’ for many years. With innovations and by continuously refining and improving our components and systems, we are playing a leading part in the drive to improve road safety. We see ‘Vision Zero’ as comprising three successive
stages: of paramount importance is the avoidance of any traffic fatalities, then reducing the number of injuries to zero. Are there no more accidents at all, we have fulfilled our ‘Vision Zero’,” Frank Jourdan, Member of the Executive Board of Continental AG and President of the Chassis & Safety Division, said. “Since seatbelts, ESC, tyre pressure monitoring systems (TPMS) and AEBS for commercial vehicles became mandatory, the total number of road traffic fatalities, injuries and accidents has declined significantly. That said, the annual toll of more than 1.2 million people killed on the world’s roads every year is still shockingly high and not acceptable. We must make a concerted effort to reduce these numbers.” Continental expects the twice-yearly ‘Stop the Crash’ demonstration events in countries like China, India, Malaysia, and Mexico, to raise awareness of the benefits of state-ofthe-art safety systems, and of tyrerelated topics. The aim is to achieve a significant improvement in global road safety and steady reductions in
the number of traffic fatalities, injuries, and accidents. David Ward, General Secretary from Global NCAP, said that, “We are delighted to be partnering with Continental in this new initiative to promote crash avoidance systems and tyre safety. To achieve the United Nation’s target to cut by half road fatalities by 2020 we need to promote strongly the fitment of ESC, AEBS, and ABS in motorcycles especially in the rapidly motorising countries of Asia and Latin America”. “Tyres are the sole point of contact between the vehicle and the road. All forces transmitted to the road are put down via a footprint no bigger than the size of a postcard. In a critical situation, it is the tyre that determines whether the vehicle can stop in time, or whether it stays safely on course through a corner. This is why we want to inform as many drivers as possible, all over the world, about the safety benefits of using high-tech tyres inflated to the correct pressure and with adequate tread depth,” Nikolai Setzer, Member of the Executive Board of Continental AG and President of the Tyre Division, said. AutoPartsAsia | SEPTEMBER 2015 | 71
GLEANINGS - International
Toyota Proves Hybrids Have Staying Power APA Bureau
T
oyota Motor Corporation Chairman Takeshi Uchiyamada likes to tell the story of how his team couldn’t get the first Prius prototype to move for 49 days. According to him, “We had no idea what was wrong, so we worked late every night trying to figure it out. We finally got it to move around Christmas time, but it only went 500 meters!” That was back in 1995, when hybrid cars were unproven, experimental machines with a very unclear future. Fast-forward twenty years, and Toyota Motor Corporation is proud to announce that it has now sold over eight million hybrid vehicles (including plug-in hybrids), with just 10 months between this and the last million-unit milestone. It can be hard to get a sense of what the number eight million might mean for the environment and for hybrid owners. For a bit of context, Toyota calculates that as of July 31, its hybrid vehicles have resulted in approximately 58 million fewer tons of CO2 emissions than would have been emitted by gasoline-powered vehicles of similar size and driving performance. Toyota also
72 | AutoPartsAsia | SEPTEMBER 2015
GLEANINGS - International
TOYOTA HYBRID VEHICLE SALES
Europe Japan
North America Others
Global
Cumulative
1997
--
300
--
--
300
300
1998
--
17,600
--
--
17,600
18,000
1999
--
15,200
--
--
15,200
33,200
2000
700
12,500
5,800
--
19,000
52,300
2001
300
18,500
16,000
200
36,900
89,200
2002
800
20,000
20,300
200
41,300
130,500
2003
900
27,200
24,900
400
53,300
183,800
2004
8,100
68,700
55,900
1,900
134,700
318,500
2005
23,400 58,500
150,000
3,100
234,900
553,500
2006
36,000 72,400
197,600
6,500
312,500
866,000
2007
49,000 82,000
287,800
10,700
429,400
1,295,400
2008
57,800 104,400
255,000
12,600
429,700
1,725,100
2009
54,700 251,100
205,300
19,000
530,100
2,255,200
2010
70,200 392,200
195,900
31,900
690,200
2,945,400
2011
82,800 316,400
185,100
44,700
629,000
3,574,400
2012
106,900 678,000
344,700
89,500
1,219,100
4,793,500
2013
152,900 679,100
358,200
89,000
1,279,200
6,072,700
2014
171,800 684,200
323,600
86,500
1,266,000
7,338,700
Jan-Jul 2015
111,800 389,300
163,200
45,300
709,600
8,048,400
Total
930,100 3,887,800 2,789,100
441,400
estimates that its hybrid vehicles have saved approximately 22 million kiloliters of gasoline compared to the quantity used by gasolinepowered vehicles of similar size. In the Indian context 58 million fewer tons of CO2 emissions is about 3.55 percent of total CO2 emissions in India. In addition, 22 million kiloliters of gasoline saved compared to the quantity used by gasoline-
powered vehicles of similar size, which is around 13.3 percent of India’s annual Oil import. The message is clear: having found homes in driveways around the world, hybrids have staying power. Since the launch of the Prius in 1997, Toyota has been gradually adding hybrid models throughout its range, from the compact Yaris Hybrid to the recently announced RAV4 Hybrid. As of this month, Toyota sold 30 hybrid passenger car models and one plug-in hybrid model in more than 90 markets. Over just the past year, Toyota has made several new hybrid models available, including the Esquire Hybrid (Japan only), the Lexus RC300h, and the recently launched Sienta Hybrid. Other new hybrid models such as the Corolla Hybrid and Levin Hybrid (China only) and RAV4 Hybrid are just around the corner. This ongoing roll-out will continue, with new hybrid models being added to Toyota’s range and sold in more markets. In India, Toyota Kirloskar Motor (TKM) launched the first locally manufactured the Camry Hybrid in August 2013. Globally India is the 9th country and/or region to manufacture Toyota hybrid vehicles. After the launch of the all new Camry Hybrid in May 2015, its popularity has increased. At present Camry Hybrid constitutes more than 80 percent of the total Camry sales in India (also sold with gasoline engine), testimony to its growing acceptance in India.
Lear Acquires IP From Autonet Mobile APA Bureau
T
he Michigan-based Lear Corporation, a leading global supplier of automotive seating and electrical distribution systems, has acquired intellectual property and technology from Autonet Mobile, a California- based developer of software and devices for automotive applications. As part of the acquisition, Lear has hired key members of Autonet Mobile’s software and product development team. Founded in 2005, Autonet Mobile’s technology directly connects onboard vehicle systems with cloudbased applications using proprietary
data exchange capabilities via cellular networks. The acquired intellectual property and technology will complement Lear’s industry-leading wireless capabilities and provide growth opportunities for its electrical business. “Combined with Lear’s expertise in embedded vehicle electrical distribution systems and related electronics capabilities, Autonet Mobile’s technology will help connect gateway modules with an array of features including over-theair software update capabilities’’, a company release has said. “The acquisition of Autonet Mobile’s
technology is consistent with our strategy of adding software capabilities that will complement our electrical distribution business,” Matt Simoncini, Lear’s president and chief executive officer, said. “We continue to see excellent growth opportunities for our electrical business as consumers demand greater connectivity features for their vehicles.” Autonet Mobile will continue to operate and offer products to the automotive aftermarket through a technology licence from Lear. Financial terms of the transaction were not disclosed. AutoPartsAsia | SEPTEMBER 2015 | 73
GLEANINGS - International
Proterra Named To Inc. 500 List
APA Bureau
P
of a West Coast manufacturing line and $55 million in strategic financing. Proterra’s firm orders are now 110 units, with 323 options contracted, for a total of 433.
This award speaks to the mounting demand for `Proterra Catalyst’ zeroemission electric buses. Last year the company announced national expansion plans that included doubling production with the addition
“We are honoured to be named to the Inc. 500 list of fastest growing companies,” Ryan Popple, CEO of Proterra, said. “To be recognised by Inc. underscores the momentum we are seeing for zero-emission mass transit. With public transit agencies’ coast-to-coast driving demand for electric vehicles, our focus during this next phase of growth is to get our new California manufacturing line up and running to service this industry’s increasing appetite for Proterra zeroemission electric buses.”
roterra Inc., the leading provider of zero-emission battery-electric buses, has been named to the 2015 Inc. 500 list, an exclusive ranking of the fastest-growing private companies in the US. Ranked number 425, Proterra has been recognised for a 1,119 percent growth in the last three years, adding 108 jobs, and establishing itself as North America’s electric bus leader with over 70 percent of the US battery-electric transit bus market.
The 2015 Inc. 500|5000 ranks companies according to percentage revenue growth from 2011 to 2014. To qualify, companies must have been founded and generated revenue by March 31, 2011, and have revenue no less than $2 million in 2014. Additionally, companies have to be US-based, privately held, for profit, and independent. 2015 Inc. 500|5000 winners will be honoured at the Annual Inc. 500|5000 Conference and Awards Ceremony during October 21-23, 2015 in Orlando, Florida. Proterra has sold over 100 vehicles to 14 different transit agencies throughout North America. Proterra’s configurable EV platform, battery and charging options make its buses well suited for a wide range of transit and campus routes.
Handte Oil Expert Collector Removes Ultra-Fine Mists, Fumes APA Bureau
T
he new Handte Oil Expert oil mist collector from Camfil Air Pollution Control (APC) operates ‘24/7’ for greater productivity. It needs very low maintenance and has long service life. It is designed to withstand the most challenging applications that utilise lubricant oils to cool machining operations, meeting even the stringent specifications of the automotive industry. Handte Oil Expert offers separation efficiencies up to 99.97 percent on 0.3 micron and larger particles, reliably handling ultra-fine, hard-to-
74 | AutoPartsAsia | SEPTEMBER 2015
capture oil mist and fume particles. It has a pre-filter and fine filter. They are the heart of the Handte Oil Expert collector. Media separators in the CoaPacks allow optimum airflow through the filters while providing maximum usable media area within a compact space. This design combines high efficiency separation performance with self-cleaning capability via drainage of the separated cooling lubricant. Benefits include reduced energy consumption, extended filter life of three years on average, and enhanced protection of the optional
HEPA final filter, which may be used for removal of ultra-fine mists and/or clean air recirculation. The compact but sturdy modular design allows optimum installation flexibility. Four basic modules with different air flows may be combined in a large central system. Processes served include turning, drilling, milling, roughing, grinding, broaching, honing, rolling, deepdrawing and pressing. Units can be delivered ready for “plug and play” without any additional assembly required at the installation site.
Em
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GLEANINGS - International
Katzkin Leather To Sell Gentherm Systems has ensured optimized seat comfort for the aftermarket industry. The two global leaders will be pioneering new comfort opportunities for consumers through Katzkin aftermarket channels.
APA Bureau
A
n exclusive agreement between custom automotive leather leader Katzkin and the global market leader and developer of innovative thermal management technologies, Gentherm,
The agreement includes the distribution of Gentherm’s ‘Degreez’ seat heating and cooling system – a onebutton technological application that delivers a thermal comfort feature for cars, trucks and SUVs. Katzkin is the official and exclusive distributor for Gentherm’s individual heating and cooling systems within the aftermarket channel. Its more than 2,500 installation ‘restylers’ throughout the US will have the ability to include Gentherm’s breakthrough (Climate Control Seating (CCS) technology.
Gentherm’s President and CEO Daniel R. Coker said, “We’re delighted to be working with an industry leader like Katzkin to bring our thermal electric-based heating/cooling technology to the aftermarket.” Katzkin will deliver Degreez within the same 24-48 hour installation process timeframe (from order process to vehicle delivery) for a vehicle’s leather interior transformation. According to Tim Clyde, CEO of Katzkin, Gentherm provided their expertise in thermal comfort through the developmental phases in creating “Degreez,” which uses Gentherm CCS technology). Katzkin plans to showcase the technology during the upcoming SEMA show in Las Vegas this November. “Gentherm CCCS is a perfect addition when upgrading an interior,” he said.
“We are a company known for innovations in designs that provide affordable luxury – and providing our customers with the true comfort of heating and cooling seats further extends the luxury associated with an upgrade to leather.” “We strive to always provide our customers with the best of the best, from concept to design to comfort, and the addition of the best heating and cooling applications, coupled in one system, provides consumers with an easy, affordable and advanced ability to further enjoy their driving experience,” Clyde said. The ‘Degreez’ state-of-theart technology combines with Katzkin’s perforated leather, providing three levels of heating and cooling -- all with one switch, for all season comfort.
Kongsberg Automotive wins seat comfort business for premium vehicle APA Bureau
K
ongsberg Automotive (KA) has been awarded a seven year agreement with a European premium automaker for the supply of seat comfort systems to a mid-size/large luxury SUV. The contract is worth an estimated EUR 15.8 million
76 | AutoPartsAsia | SEPTEMBER 2015
(NOK 145 million) over its lifetime, and production is scheduled to start in the third quarter of 2016 from KA’s facility in Pruszkow, Poland. The vehicle that KA will supply to combines offroad ability and luxury. KA will supply comfort systems including lumbar support
systems for the front seats and seat heat systems for all three seat rows. “Providing seat comfort solutions to the premium seat and car makers in a growing segment of the automotive industry is exactly what we want to achieve, and this is a great win for us. Our leading
seat comfort technology and experience, coupled with our strong market orientation and global footprint provide a solid value proposition to customers”, said Hans Jørgen Mørland, VP Sales & Marketing for Kongsberg Automotive’s Interior business area.
GLEANINGS - International
Europcar Adds Abarth 500 To Fleet APA Bureau
E
uropcar, the leader in car hire services in Europe, has added the sporting Abarth 500 hatchback to its growing fleet. Adding a touch of high performance to the esteemed Fiat 500l, the Abarth injects that little extra bite into a weekend get-away, while maintaining the style, handling and performance which make the original such a favourite amongst city-breakers. The model comes with a punchy 140hp 1.4-litre petrol engine, providing extra zip to a spin in the sunshine, and a host of safety and comfort features designed to help drivers stay cool behind the wheel. The classic retro 500 style is retained, ensuring that the ride continues to look as good as it feels.
Europcar is a leading mobility players in Europe. Present in over 140 countries, the Group provides customers with one of the largest vehicle rental networks through its own operators, franchisees and partnerships. Europcar Groupe operates worldwide its own brands Europcar and InterRent, its low-cost brand. “The Abarth 500 is certain to prove a very popular choice among customers,” Ken McCall, Managing Director, Europcar UK Group, said. “With that little bit of added performance, it perfectly complements our existing hatchback range, giving customers yet another option for their journey. “We know that when it comes to a sultry city-break or a spin down to the seaside, our customers want to drive the vehicle that best suits their needs. The Abarth provides yet another costeffective solution that, we hope, will be the cherry on top of a great many holidays across Britain this summer.”
ANSYS Offers Simulation Software To Students APA Bureau
T
he Students around the world now have free access to the same leading engineering simulation solutions used by top organisations and professional engineers to create very advanced products, thanks to ANSYS. The company based in Pittsburgh, the US, has released ANSYS® Student as a free, introductory academic software package for students interested in learning the fundamentals of simulation. They can also get exposure to the state-ofthe-art ANSYS simulation workflows, pre-processing, post-processing and solver solutions. Students can tackle a broad scope of mechanics and fluids simulations, from fundamental tutorial level models to complex realworld scale models.
“At Cornell University, we use ANSYS software in a dozen courses in mechanical and aerospace engineering to expose students to finite element analysis and computational fluid dynamics simulations. Our students find it convenient to have the software on their computers to complete homework and projects,” Rajesh Bhaskaran, Swanson director of engineering at Cornell University, said. “The free ANSYS Student product is a truly exciting development since it puts state-of-the-art simulation technology at students’ fingertips everywhere. This will enable them to solve real-world engineering models while also gaining fundamental physical insights. This means
students will be much better prepared for the modern engineering workforce,” he said. In addition to the software, ANSYS is providing self-guided technical support, installation videos, FAQs and introductory tutorials through the ANSYS website. “We are proud to equip the nextgeneration engineers with ANSYS’ leading software technology, both inside and outside of the classroom,” Mark Hindsbo, ANSYS’ vice president of marketing, said. “Investing in STEM education is critical for the global economy and we at ANSYS are passionate about doing what we can to enable the students of today to be the best possible engineers of tomorrow.” AutoPartsAsia | SEPTEMBER 2015 | 77
CALENDAR 55th SIAM Annual Convention 2015 2nd September, 2015 Hotel Taj Palace, Sardar Patel Marg, Diplomatic Enclave, New Delhi, Society of Indian Automobile Manufacturers Tel: 91 11 24647810 -12 email: siam@siam.in www.siam.in 55th ACMA Annual Session & National Conference 3rd September, 2015 Hotel Taj Palace, Sardar Patel Marg, Diplomatic Enclave, New Delhi, Automotive Component Manufacturers Association of India Tel: +91 11 2616 0315 www.acma.in International Powertrains, Fuels & Lubricants Meeting 1-4, Sep 2015 Kyoto TERRSA, Japan SAE; F&L Conference Organizer Office-in-Charge 2015pfl@jsae.or.jp http://http://pfl2015.jp/ New Energy Vehicle Forum 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 China 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 15-17 Sep, 2015 Indianapolis Marriott Downtown Indiana, USA SAE; Darlene Waychoff darway@sae.org http://www.sae.org/events/obd/ North American International Powertrain Conference 16-18 Sep, 2015 Westin Chicago River North Hotel Chicago, USA SAE; Brandie Schandelmeier brandie@sae.org http://www.sae.org/events/naipc/ Gasoline Compression Ignition Engine Symposium 17-18 Sep, 2015 Grand Hotel Quisisana Capri, Italy SAE; Sherry McCaskey kramer@sae.org http://www.sae.org/events/gcie/ AeroTech Congress & Exhibition 22-24 Sep, 2015 Washington State Convention Center Seatle, USA SAE; Darlene Waychoff
78 | AutoPartsAsia | SEPTEMBER 2015
darway@sae.org http://www.sae.org/events/atc/ AeroTech Congress & Exhibition 29 Sep-1 Oct, 2015 Troy Marriott, Troy, Michigan, USA SAE; Melissa Jena mjena@sae.org/ www.sae.org/events/tmss/ Brake Colloquium & Exhibition - 33rd Annual 4-7 Oct, 2015 Charleston Area Convention Center Charleston, South Carolina, USA SAE: Melissa Jena mjena@sae.org https://www.sae.org/events/bce/ EMO Milano 2015 5-10 Oct, 2015 Fieramilano Exhibition Centre, Milan Alfredo Mariotti exhibition.director@emo-milan.com http://www.emo-milano.com/ 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 Automotive Testing Expo North America 20-22 Oct 2015 Suburban Collection Showplace Novi, Michigan, USA Renata Lengui renata.lengui@ukipme.com http://www.testing-expo.com/usa/ Transmission & Driveline Technologies Symposium 27-28 Oct, 2015 The Inn at Saint John’s, Plymouth, Michigan, USA SAE; Sherry McCaskey kramer@sae.org http://www.sae.org/events/ctf/ SEMA Show 3-6 Nov 2015 The Las Vegas Convention Center, Las Vegas, USA SEMA Show sales@sema.org http://www.semashow.com/ Active Safety Systems Symposium 4-5 Nov, 2015 Plymouth, Michigan, USA SAE; Marc LeDuc mleduc@sae.org http://www.sae.org/events/cass/ Energy Saving and Emission Reduction Forum 4-5 Nov, 2015 Crowne Plaza Century Park Shanghai Shanghai, China SAE; Sherry McCaskey
kramer@sae.org http://www.sae.org/events/eser/ Small Engine Technologies Conference 17-19 Nov, 2015 Osaka International Convention Centre Osaka, Japan Society of Automotive Engineers of Japan, Inc SETC2015office@jsae.or.jp http://www.setc-jsae.com/ Electric Powertrain Technologies Symposium 17 Nov, 2015 Maritim Hotels - Hotel Stuttgart Stuttgart, Germany SAE; Brandie Schandelmeier brandie@sae.org http://www.sae.org/events/epts/ Vehicle Electronics and Powertrain Technologies Forum, 3-4 Dec, 2015 Shanghai, China SAE; Sherry McCaskey kramer@sae.org http://www.sae.org/events/vept/ Automechanika Shanghai 2-5 Dec, 2015 National Exhibition & Convention Centre Shanghai, China Messe Frankfurt (HK) Ltd auto@hongkong.messefrankfurt.com www.automechanika.com UKIP Media & Events Ltd 19-21 Jan 2016 Korea International Exhibition Centre (KINTEX) Seol, Korea Renata Lengui renata.lengui@ukipme.com http://www.testing-expo.com/india/ Automechanika Middle East 26-28 Jan 2016 Jeddah Centre for Forums & Events Saudi Arabia Messe Frankfurt Middle East GmbH gazi.bilikozen@uas.messefrankfurt.com www.automechanikajeddah.com Hybrid and Vehicle Technologies Symposium 9-11 Feb 2016 Disneyland Hotel, Anaheim, California, USA’ SAE; Brandie Schandelmeier brandie@sae.org http://www.sae.org/events/hybridev/ UKIP Media & Events Ltd 20-22 Apr 2016 Chennai Trade Centre, Nandambakkam, Chennai, India Renata Lengui renata.lengui@ukipme.com http://www.testing-expokorea.com/english/ Automechanika Dubai 8 – 10 May 2016 Dubai International Convention & Exhibition Centre Dubai
Messe Frankfurt Middle East bilikozen@uae.messefrankfurt.com Telephone: +971 4 389 45 00 www.automechanikadubai.com Automechanika Birmingham 7 - 9 June 2016 NEC Birmingham, United Kingdom Forest Exhibitions Ltd info@uk.messefrankfurt.com Telephone: +44 (0) 1483 483 984 http://www.automechanika-birmingham.com
Advertiser’s Index A Al Saeedi
Back Cover
ALC 53 Atlantic Lubricants
Back Inner
Auto Expo
21
AutoParts Asia
75
AutoShow Pune
46
D Desma 1
E EMO Milano
27
G Gold Seal
4
I IMTMA 19 IP Rings
33
IRSD 59
M Manatec 17 MSC Software
Front Inside
O OMRON
9
P Polymers & Tyre Asia
70
R Roots Industries 11 Rubber Asia
63
RubberWorld
31
T Titan 15 AutoPartsAsia | SEPTEMBER 2015 | 79
AUTO LAUGH
Words of wisdom
B
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
uying a car is like marriage. One has to pay a ‘heavy price’ for both. If you are lucky, you get a car that is not troublesome. Getting a good wife is as much important. For peace of mind both should be compatible with your personality. There are elements of emotion involved in acquiring both. I believe that buying a car and marrying a girl are decisions that can make or break one’s life.
that have a profound effect on me. Let me share some of these gems.
For the dream chasers, it is wise to have some moderation and have a clear aim in life. As we grow older, if we are conditioned by the words of wise men, we will become wiser. There will be less wrong decisions and more peace and happiness.
Remember, those who genuinely love you will never leave you. Even if there are 100 reasons to give up, they will find one reason to hold on to you.
If we listen to the sages we would realise that wearing a $300-watch or $30 -watch will serve the same purpose, show the time. So is with the choice of cars. The billionaire investor guru Warren Buffett, who lives in the same house that he bought in 1958, bought a brand new Cadillac last year. He traded his ten-year old car to get the new model that was chosen on the advice of his `auto friend’. Buffett, whose investment decisions sway the global market, listens to wise men. So do I. After listening to wise men, I have learnt many profound things in life. One day we all will realise that true happiness does not come from our possessions,for which we spent a better part of our life. I have realised that we will have true happiness and peace in the company of people w love, and who love us. I realised the five undeniable facts for leading a rewarding life after interaction with my friends whom I admire for their wisdom and knowledge. They taught me life’s simple facts
80 | AutoPartsAsia | SEPTEMBER 2015
Don’t educate your children to be rich. Educate them to be happy. When they grow up, they will know the value of things not the price. The best-awarded catchphrase in London is: `Eat your food as your medicines. Otherwise you will have to eat medicines as your food’.
There is a big difference between a human being and being human. Only a few really understand it. This has set me thinking about the true value of having mutually respectful relationship. I am not being philosophical, but these pearls of remind me that we are loved when we are born. We will be loved when we die. In between, we have to manage...! We can walk fast, or alone...! But if we want to walk far, we have to walk together...!! God is generous to all but we need to take His cue for leading a meaningful life. He has given us the six best doctors we can ever imagine to have. Look around for them. These are sunlight, rest, exercise, diet, self confidence and friends. The treasure of happiness is strewn all over the place. Pursue it, we can discover it. Always seek wise counsel. Words of wisdom should guide your life, whether in choosing the car or wife.
PT Pricol Surya Transforms To Become Engineering Partner For OEMs
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OMRON Offers Automation, Sensing, Control Solutions To Automotive Industry