November 2016

NEI Expands Bearing Production Capacity

RNI No. MAHENG13758

www.autopartsasia.in

Vol.No.1 Issue No.6 November 2015 | US$ 20 `200

AUTO PARTS ASIA | NOVEMBER 2015 RNI No. MAHENG13758

Infrastructure Drives Construction Equipment Industry Paul Sabatini

All Roads Lead To NAIAS, Detroit

Arvind Balaji

ACMA Seeks Ecosystem For Innovation, R&D

Vol No 1 | Issue No 6 | November 2015

ISSUE

IN THIS

10

16

Zellmer To Lead Porsche Cars North America

Continental Develops eHorizon For Safer, Connected Driving

PEOPLE

CORPORATE

6 IMPRESSIONS

30

COVER STORY

Infrastructure Drives Construction Equipment Industry

7 EDITORIAL - Reskill the Deskilled

8 TRAILBLAZING TRENDS - By T Murrali

10 PEOPLE

- David G Pettyes Is New VP Of Visteon

12 LAUNCHES

- X5M, X6M – High-Performance Sports Cars From BMW - Mercedes-Benz To Make GLE In Pune Plant

14 CORPORATE

- Axalta Coating Attempts To Brings Brilliance To Indian OEMs - UNO Minda Sharpens Focus On Innovation

25

AFTERMARKET

-HORN GROUP To Introduce New Automatic Oil Management System -Aftermarket Is Mainstay of Liqui Moly

20

42

47

ACMA Seeks Ecosystem For Innovation, R&D

High-Value Features To Make China Global Truck Market Leader

Tiny Rajkot Makes It Big In Auto Parts Production

INTERVIEW

PRESPECTIVE

FOCUS

FEATURES

36

40

- Construction Equipment Industry Builds Stronger Economy

- NEI Expands Bearing Production Capacity

INSIGHTS

48 EVENTS - EMO Milano Rings In Positivity For World Machine Tool Industry’s Growth

SPECIAL REPORTS

65 GLEANINGS International - American Honda Rewards Best Suppliers

- Hands-free Technologies Can Lead To Unexpected Dangers: AAA Foundation - McLaren Celebrates 50 Years Of US Race Series With Limited Edition 650S CAN-AM

- Ahmedabad Expo Boosts Machine Tool Industry In Western Region - New Automotive Testing, Engine Technologies On Show In Detroit

- Volkswagen Diesel Vehicle Prices Drop 16 percent - ‘No Emission Issue For Volkswagen Cars In HK’

61 PREVIEW

- Automechanika Shanghai 2015 To Exhibit Latest In Automotive Parts, Services - GenNext Automotives To Dominate Pune AUTO’15 Expo - All Roads Lead To NAIAS, Detroit

- CII Rubber World Expo 2015 To Focus On New Industry Trends

70 CALENDAR OF EVENTS 72 AUTO LAUGH - New Theory Of Relativity

IMPRESSIONS

READERS’ LETTER

Focus On SMEs

I

must congratulate your designers, production staff and publishers for the high quality of production and standard of the magazine. I enjoyed the article, ‘Words of Wisdom’ in the September issue of your magazine. It is a combination of some humour and some wisdom too!!

I see that your magazine covers only the big ones. I think there is scope to report on SMEs that are key to the manufacture and supply of many less-exacting motor parts.

These small timers keep the vehicle industry very much alive. Through the repair services they offer easy access to spare parts, genuine, self-invented or modified! They form an indispensible part of the motor industry. One popular service they provide is to have cars repainted and restored.

Perhaps, you can start by talking about the right use of paint to paint cars.

J C Raja Rao, Ex-Rubber Research Institute of Malaysia

6 | AutoPartsAsia | NOVEMBER 2015

We Welcome Your Comments We 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. Kindly mention your full address and phone number.

Our e-mail address is: tm@abm.net.in You may visit www.autopartsasia.in for instant updates on the automotive industry developments.

T

echnical skill shortages are being reported by businesses across the world. This is more so with the technological advancement in every field, including automotive. A fallout of this is deskilling of people. The level of skill sets acquired by people has been declining as the academia has not been able to match with the industry trend and demand.

Several organisations, including the Society of the Indian Automobile Manufacturers (SIAM), Institute of Motor Industry (IMI), a not-for-profit organisation in the UK, and Original Equipment Suppliers Association (OESA), in the US, have been asking their respective governments to focus more on skill development to carry out their set goals. Three Ms – man, machine and material – make up any manufacturing industry. The last two can be acquired. Unless ‘methods’ that can enable man to use machines optimally are in place at the right time, the organisation is likely to fail. IMI Chief Steve Nash has warned of a critical skill shortage among vehicle technicians.

Skill development is crucial for infrastructure development. In spite of technological advancements in the off-road segment, the industry may not deliver results without supporting skills. Therefore, every government must focus on reskilling the deskilled.

The cover story of this issue is on construction equipment and offroad vehicles that are directly linked to economic development. The industry has to generate human resource to help India achieve the number three position in the world automotive arena in a decade.

Last month AutoParts Asia participated in EMO Milano, one of the largest machine tool exhibitions in the world, and in the Automotive Testing Expo North America, in Detroit. You will find reports on these events, that set benchmarks in their respective fields by showcasing path-breaking technologies to enhance productivity.

Wish you Happy Reading.

Kurian Abraham Editor-in-Chief

EDITO R IAL

Reskill The Deskilled

Editor-in-Chief: Kurian Abraham | Chief Executive Officer: John S Powath | Editor: 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

November 2015 | Vol. 1 | Issue No. 6

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, Published and Owned

by Antony Scaria Powath, and Printed at Five Star Offset Printers, Building No. 1/151, A.B & C, Nettoor, Maradu Municipipality, Ernakulam District, Kerala State & Published from: 20th Vaikunth Apartment, Mount Mary Road, Bandra (W), Mumbai 400 050.

Editor: Murrali Thalor

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 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: +1 248 747 7201, Email: louis.rumao@ yahoo.com | China: Ella Liu (Liu Ting)/Terry Yin (Yin Tian), China United Rubber (Group) Corporation, 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: mott@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 | NOVEMBER 2015 | 7

Trailblazing Trends

Back To The Future

F

ictions are popular as only they show the future in advance.

And movies precisely picture scenes that might be a reality in future, sometimes in the near future. Recently movie magic turned into a technological reality when over 300 new Toyota Mirai owners, the dealers and a few others watched actors Michael J Fox and Christopher Lloyd bringing a famous trash-into-fuel scene from ‘Back to the Future Part II’ to the present. The event was held on October 20, 2015, marking the arrival of ‘Mirai’, the hydrogen fuel cell vehicle, into the US. Mirai is perhaps a modern, real-life version of Doc Brown’s trash-fuelled technology.

The ‘Fuelled by the Future’ video debuted at the event is the latest in the ‘Fuelled

By Everything’ online video series demonstrating hydrogen fuel’s potential to be sourced from almost anything, including solar, wind and trash. The day also marked the commencement of sale of Mirai, the same date that was ‘the future’ in the storied Universal franchise. Astonishingly over 2,000 people so far have evinced interest in buying Mirai in California, where it is first available in the US. It may be perhaps due to the State’s active involvement in environment and people’s aspiration to look out for innovative products - as the only thing that comes out of Mirai’s tailpipe is water.

Stay Connected Cell phones have been shrinking in size but its 8 | AutoPartsAsia | NOVEMBER 2015

application has been ever widening. From a gadget just to make and receive calls, it is blown out of proportion to include various applications making it the be-all and endall of the life of the users.

The latest (it may become obsolete by the time you read this) will control your car with Apple Watch. Connect2Car, an established leader in integrated automotive electronic solutions, has announced the debut of the Connect2Car Apple Watch application, which allows users to find, start, and manage other critical safety aspects of their car remotely.

Though there are some new vehicles, especially new electric cars integrating with wearable controls such as the Apple Watch, for people with the existing vehicles there are only very few alternatives to watch-enable their ride.

Power Play General Motors broke the monotony of traditional vehicle development by roping in LG Electronics as its partner to develop the next generation Chevrolet Bolt EV (electric vehicle), which can travel more than 320 km on a single charge.

Offering consumers the first long-range, affordable EV warranted an unprecedented supplier relationship combining expertise in infotainment, battery systems and component development with the OEM’s in-house capabilities in electric motor design, battery control, system validation and vehicle body/system integration.

By T Murrali Following joint planning and research, GM and LG brought the Chevrolet Bolt EV to reality. It may be recalled that the Bolt EV concept was shown at the North American International Auto Show in January this year.

Expo Extravaganza Last month saw the Tokyo Motor show and I am sure there would have been several new concepts on mobility. As AutoParts Asia went to press earlier than the show it did not have details of the new products. While it is so, the organizers of the Los Angeles Auto Show, The LA Auto Show and Connected Car Expo, announced 50 vehicle debuts, important business announcements and technological breakthroughs that would shape the future of the automotive industry.

Therefore, November will again be an action-packed.

Well, trailblazing trends are there in every field. In the testing arena, for automobiles and other machines / processes, the US-based HBM has introduced ‘fibre sensing optical sensor’ technology. This can be deployed for measuring strain, temperature, tilt, acceleration and displacement in a wide range of applications. It can obtain high-precision results in several challenging applications including structural, fatigue / stress testing and long-distance measuring points.

Also, Bluetooth is deployed to get measurement data from places wired connectivity is troublesome. Technologies Triumph.

PEOPLE

Zellmer To Lead Porsche Cars North America APA Bureau

successfully introduced the Panamera sports sedan to the North American market, followed in 2014 by the equally successful Macan compact sports SUV.

P

orsche AG has appointed Klaus Zellmer as new President and Chief Executive Officer of Porsche Cars North America, Inc. (PCNA). The outgoing PCNA President and Chief Executive Officer, Detlev von Platen, has been relocated from Atlanta to Porsche headquarters in Stuttgart, Germany, for his new role as Executive Board member responsible for global Sales and Marketing. Both the appointments were effective from November 1, 2015. Platen succeeded Bernhard Maier, who was appointed Chairman of

the Board of Management for SKODA in the Czech Republic.

Platen has led PCNA since 2008. Under his leadership North America remained the most important market

for Porsche worldwide.

New vehicle deliveries in the US nearly doubled from 26,000 units in recession year 2008 to a record-setting 47,000 units in 2014. In 2009, he

“I have known Klaus Zellmer for many years and am very pleased to have a seasoned sales and marketing expert to succeed me as head of PCNA,” Platen said. “His track record and cando attitude make him a perfect fit for our US sales organization,” he said.

Zellmer studied Business Administration in Germany, the UK and the US. He reports to Platen who is named Chairman of the Board of Directors of PCNA.

David G Pettyes Is New VP Of Visteon APA Bureau

V

isteon Corporation, a global supplier of vehicle cockpit electronics, has appointed David G Pettyes as vice president and chief human resources officer. Pettyes has more than 20 years of global human resources experience and joins Visteon from Delphi Corp., where he was a vice president of global human resources. In his most recent assignments, he led human resources for the Packard Electrical/ Electronic Architecture Division and Delphi Asia Pacific, after previously serving as vice president, global HR, for Delphi’s Electronics and Safety Division.

Pettyes, 44, reports to Visteon President and CEO Sachin Lawande.

As a corporate officer and member of Visteon’s global leadership team, he is responsible for the company’s global human resources strategy and programmes, including recruitment and development, compensation

10 | AutoPartsAsia | NOVEMBER 2015

and benefits, labour relations and organisational structure.

“Dave is a result-oriented leader.

His experience in automotive and technology environments, and his success-building HR capabilities in Asia, Europe and the Americas, make him an ideal fit for Visteon,” Lawande said.

Pettyes was recently based in Shanghai, China, as vice president of global HR for Packard – the largest division within Delphi – supporting 120,000 employees and $8.5 billion in revenue, and leading HR activities for Delphi in the Asia Pacific region. He began his career in HR roles with General Motors Corp. before joining Delphi when it became independent in 1999. With Delphi, he served in various plants, corporate and divisional positions of increasing responsibilities.

Pettyes has both Bachelor’s and Master’s degrees from Michigan State University.

LAUNCHES

X5M, X6M – High-Performance Sports Cars From BMW APA Bureau

H

igh-performance models from the BMW M range – the all-new BMW X5 M and BMW X6 M were launched recently in India.

Whether on the racetrack, gravel road or motorway – the ultra-high performance sports activity vehicle and sports activity coupe take every territory by storm.

The tough off-roading characteristics of the BMW xDrive and the stunning power delivery of the M range come together to give form to these winners from the BMW stable.

Philipp von Sahr, President, BMW Group India, said that, “Inspired by motorsport, M is one of the most coveted badges

of all and has shaped the history of performance automobiles. The next chapter will begin now with the BMW X5 M and the BMW X6 M, raising the bar for high-performance sports cars with highly emotive design, increased output and outstanding efficiency. Their exclusivity, breath-taking agility and powerful acceleration combined with everyday usability sets them apart in their segment. When these two athletes from the M family flex their muscles, extreme power is unleashed.”

“Uniting the best of both worlds, the BMW X5 M and BMW X6 M are allrounders that cope with

every challenge due to their distinctive versatility.

They confidently stand out of the crowd - just like their drivers. Driving an M car is like experiencing the world from a level above.

It is the fastest escape from the ordinary. The striking X and M design elements combined with a luxurious interior and superior technology reveal the exclusive character of these cars,” he said.

These cars are available as completely built-up (CBU) units at the ex-showroom (in New Delhi and Maharashtra) prices of Rs 15,500,000 for X5M and Rs 16,000,000 for X6M. They are in seven metallic paintworks: Carbon Black, Silverstone, Black Sapphire, Melbourne Red, Mineral White, Long Beach Blue, Donington Grey and in non-metallic Alpine White colour.

Mercedes-Benz To Make GLE In Pune Plant grew 45 percent in the January-September 2015 period and the Tamil Nadu market by 43 percent.

APA Bureau

M

ercedesBenz which launched its global bestseller, the GLE, in the 250 d and 350 d variants in

12 | AutoPartsAsia | NOVEMBER 2015

Chennai, will soon produce it in its Pune facility. GLE is the highest selling, versatile and dynamic luxury SUV in India with the sales of over 6,100 units so far. The South Indian market for Mercedes-Benz

GLE combines the best of on-road driving with off-road performance and raises the benchmark for a luxury SUV to the next level, Roland Folger, Managing Director and CEO, Mercedes-Benz India, said. He said that: “GLE is a very special product for all of us at Mercedes-Benz. The M-Class which established the luxury SUV segment in 1997 has been one of the most successful models for Mercedes-Benz globally with more than 1.6 million units sold. It has all the attributes to be a worthy successor and continue the success story of the best-selling M-Class”.

The SUV portfolio of Mercedes Benz in India ranged from the GLA to the AMG G 63. “This gives us a strong competitive advantage, resulting in our SUV segment to grow the fastest in the entire portfolio by 70 percent during January-September 2015”, Folger said.

The exterior design of GLE adds dynamism and makes the SUV appear wider. Its interior boasts of modern luxury. GLE’s gear changes are handled by the 9G-TRONIC developed in-house by MercedesBenz. It is the world’s first 9-speed automatic transmission in the luxury segment and offers up to five driving modes. The infotainment system of GLE offers COMAND Online with New Generation Telematics.

CORPORATE

Axalta Coating To Bring Brilliance To Indian OEMs

By Sharad Matade

A

xalta Coating Systems India Pvt. Ltd will double its production capacity and construct an automotive OEM coatings development laboratory at its operations centre at Savli in Gujarat

to meet the increasing needs of the OEMs and reinforce its position as a leading supplier of coatings in the country. Axalta Coating Systems is a global coatings company dedicated to the development, manufacture and sale of liquid and powder coatings that increase durability, productivity and provide colourful finishes.

“In the last couple of years, we have been focussing on growth in India and maintaining a marketleading position in refinish and bus segments. And in continuation of our commitment to the Indian market, we are expanding our capabilities of OEMs coating at our Savli plant.

This is a natural progression of our strategy to be in India,” Charles W Shaver, Chairman and CEO, Axalta Coating Systems, told AutoParts Asia.

The Savli facility will continue to manufacture coatings for Axalta’s refinish, light and commercial vehicle customers. “In India, we have large presence only in refinish segment, not in OEM segment. Globally we are the number one coating supplier in refinish and the second largest in OEM segment. There are many OEMs in India with whom we have been doing business globally. Therefore we feel we will grow in the Indian OEM segment”, he said.

The new automotive OEM coatings development laboratory is scheduled for completion during the second quarter of 2016. It will focus on developing special formulations to ensure superior colour-match, appearance, and quality.

The capacity expansion project, for both high and low temperature bake coatings, is scheduled to Charles W Shaver

14 | AutoPartsAsia | NOVEMBER 2015

be on stream in the third quarter of 2017. The company is looking for partnerships and acquisitions for expansion and inorganic growth.

Axalta’s improved laboratory space will feature contemporary robotic spray applicators that can precisely replicate line application conditions inside customer manufacturing plants. The equipment is designed to facilitate the development, approval, quality control and line-support required by automotive customers.

Additional new capabilities at this next generation facility include colour measurement tools and accelerated paint testing equipment.

The Savli plant employs a range of environmental, health and safety processes and systems to reduce the facility’s environmental impact.

Axalta has a strong presence in the refinish, and fully-built bus segment in India. It serves a growing network of distributors and bodyshops supported by offices and regional training centres in Mumbai, Vadodara, Gurgaon, Kolkata, and Bangalore.

Talking about the emerging trends in coating business for automotive industry in India, Vinay Rajadhyaksha, Managing Director, Axalta India said, “Customers are asking for more productivity and less VOC (volatile organic compounds), and they also want high solid products, so that VOC will be less. They are also talking about waterborne coatings. We are fully ready for the Indian market.”

Asia Pacific Region The Asia Pacific region, according to Shaver, will be a crucial market for the company’s revenue growth in the coming years. The APAC region currently contributes 15 percent to the company’s total revenues. “We target to enhance the share of sales from the region to 25 percent in the next five years,” Shaver said.

For the short-term, Axalta expects a double digit growth in the Indian

Savli Plant

market. “Anything less than a double digit is not acceptable in the nearterm. For the long-term, the growth will depend on various factors such as infrastructure, economy, policies and other developments. We will follow them closely,” Sobers Sethi, Vice-President, Asia Pacific Region, Axalta Coatings Systems, said.

World Market

Shaver said that like real estate and general industries, automotive sector in China was also going through a tough period. “But I think automotive sector will pick up first. The slowdown in China has impacted our next expansion plans in that country. After adding the capacity at our Shanghai plant recently, we had planned for the next expansion in 2017. But we may go slowly for that. China is a very large economy. I don’t think the current slowdown will change our views for the country. We feel growth will be in the Tier-2 and Tier-3 cities in China and we need to focus on those cities”.

Shaver said: “Looking globally, our business in North America is strong and in Western Europe is meeting expectations with the potential for an uptick toward year-end. We are carefully watching the slowdown of the economies in Russia and Brazil which have resulted in a significant reduction in new vehicle demand in these markets, and the outlook continues to remain uncertain in the near to medium-term”.

Automotive companies are using new materials to make vehicles lighter and more fuel efficient and to help reduce the environmental footprint of the transportation segment. “The challenge is to be able to integrate these new concepts through the paint process and achieve the level of corrosion protection, appearance and durability that our customers and their end-users demand. It’s our goal to offer coating systems that can accommodate these materials and produce a long-lasting, beautiful finish,” he said.

Axalta does business in 130 countries and that scope provides a great deal of resilience in managing near-term fluctuations in market conditions. The company is seeing strong demand from North America and Europe.

However, the demand is slowing down from Latin American markets.

Axalta offers the refinish shop owners access to its business management tools designed to improve productivity and profitability. The company’s training programmes at its training centres provide refinishers with tips on the best ways to use its products which results in savings and enhanced productivity. Axalta also has in-shop demonstrations and training in the use of its products to ensure that the customers use the products the right way and get the benefits that Axalta’s systems are designed to provide.

“We offer a range of cutting-edge colour tools such as tint charts, shade cards and colour formulation books to help customers perfectly

match colours with easy-to-use and accurate technology”, he said.

New Materials “As a coatings manufacturer, we are aware of how new materials are translated into different requirements for our products due to both the nature of the substrate and the fundamental performance benefit expected of the coating. Metal is coated to prevent corrosion and we’ve developed a variety of coatings to protect and then add colour to traditional metal vehicle parts. The demands on coatings for plastics are quite different. These materials require formulations that will adhere to plastics, remain flexible and still provide a color that’s a perfect match to the coating on the adjacent metal substrate. Finally, coatings for plastics will often need to cure at lower temperatures which presents sophisticated chemistry,” Shaver said Axalta Coating has been continuously evaluating new materials and processes in order to delight designers and consumers alike and to allow the end- product to meet high performance, quality and colour harmony standards.

New regulations and norms are being imposed to produce ecofriendly products. Axalta’s product developments are also driven by the regulation. “Yes, we are one of those coatings producers that stay ahead of regulators. Even if regulations are tightened we are ready to meet them.

We actually stay five years ahead of the regulators,” Shaver said.

AutoPartsAsia | NOVEMBER 2015 | 15

CORPORATE

Continental Develops eHorizon For Safer, Connected Driving

By T Murrali

C

ontinental Automotive GmbH has launched a new technology called eHorizon with three stages - static, connected and dynamic – to help reduce the cost of ownership and operation of vehicles through better safety and fuel efficiency.

Static is already in place and Continental is, at the point, introducing connected eHorizon where the collected data can be shared with other trucks, particularly where no topological data is available. This allows more up-to-date and detailed information to be added to a digital map. Information can also be generated for routes that previously had incomplete map data.

The final evolutionary step of eHorizon would be automatic driving or partly automated driving - simplified driving- that would take all the stress away from the driver with the interior camera that would bring his attention back to the road.

this technology and also in the HMI (Human Machine Interface), where this configurable cluster in the trucks, with connections and multimedia, could help the driver in the area of safety by ensuring that he is not distracted. “The data from the cloud controls the speed of the powertrain and sets the speed accordingly by taking into account the obstacles that may crop up on the road during the drive. It also takes into account the traffic signs and this is where we see a lot of potential in saving energy.

For example, you can increase speed to cross a green traffic light before it turns red, you don’t have to brake and lose energy,” he said.

There were many areas where the commercial vehicles would make use of

Continental has five divisions, Chassis & Safety, Interior, Powertrain, Tyre,

“Brazil and China are much interested in eHorizon technology. This data can be used to prevent accidents and avoid traffic jams. We have a tie-up with Google Earth for this”, Dr Michael Jorg Ruf, Head, Business Unit Commercial Vehicles and Aftermarket, Continental Automotive GmbH, told AutoParts Asia.

16 | AutoPartsAsia | NOVEMBER 2015

and ContiTech.

In 2014, the corporation generated sales of approximately €34.5 billion. The Commercial Vehicles and Aftermarket Business Unit accommodates the specific requirements of the commercial vehicle, special vehicle and aftermarket sector. This business unit develops and produces products that make commercial and special vehicles safer, cleaner,more fuel-

efficient and makes their use in day-to-day business more efficient.

Digital Mirrors The digital mirrors technology is going into serious development. It will come into commercial vehicles and arrive soon in Europe. Fuel efficiency saved will be two to three percent. For the American trucks which are aerodynamic, getting rid of these mirrors will not pay so much. eHorizon could save up to five percent.

Since the additional cost is very low, after a short period it pays off.

The digital mirror system is still costly. “But the good thing is you can do more with it - blind-spot detection on an optical base, you can detect the presence of two-and-three-wheelers while doing turns. This is what some of the OEs will now go for,” he said.

The Continental products would be flexible to cater to a large number of variances. “For example, for one truck manufacturer we are doing two different versions that will cover all their trucks with different population options. For the OEMs it is a matter of being recognised as a technology leader so they will do it even if the cost is not competitive.

The benefits are hard to achieve. Still some of the OEMs are willing to spend that additional amount of money”, Ruf said.

Internet In Trucks Internet in trucks is different from that in the passenger vehicles. In the truck it is important that the driver does not get distracted while using the internet. In the commercial vehicles the priority is to make sure that the driver does something more than just

driving. For instance in autonomous driving for trucks the driver has free time to do something more than monitoring the truck.

“There are two aspects important for commercial vehicles. First, the driver could work on his logistics, his report and other workrelated stuff - he doesn’t have to do it later on. This saves time which the fleet owners are interested in.

We have a technology called ‘Interior Camera’ which is a camera mounted in the area of the cluster.

It monitors the driver and can recognise if he is actually looking at the road or somewhere else.

All the sensors monitor the road and in case something happens which the driver is not looking at or is unaware of, there are means to alert the driver and bring his attention back to where the hazard is taking place. We have the technology that makes it safer for the driver and the OEs,” he said.

When it comes to weight reduction the pressure is not that high in CVs as compared to passenger cars. Nevertheless, everybody is happy if we can reduce the number of components. “When we account for all the sensors, we come to the point of sensor fusion. All the information goes into one controller that takes everything into account.

With this we can derive more accurate information from the raw data coming in. Here the software plays a vital role. This is needed when it comes to automated driving,” he said.

Preventing Hacking The global company develops products under the umbrella of software security. A component gets

hacked when someone gets access to the car.

Therefore, every access has to be secured. With all the vehicles becoming more and more connected to the outside world by different means, unauthorised access to the car is possible. “What we do is secure that line to the outside world; we are collaborating with Cisco to do the utmost possible. The hazard is there and my personal view is that this problem will increase. Everybody

in India depends on the type of roads available.

“There are certain vehicles where it makes sense and others where it doesn’t. In the long haul, on highways, it is absolutely necessary, even in India,” he opined.

has to work together, the OEMs, the suppliers, the manufacturers, to make access as secure as possible. Time and effort is going in to prevent this from happening,” Ruf said.

for better safety. We hope future legislation will cover this aspect.” The other focus areas of Continental for India include improving the power train to reduce fuel consumption by using the latest technologies; reduce the wind-drag on trucks on highways; develop customised solutions to meet customer needs specific to India; make use of platform solutions for clusters and control units with respect to OEMs; replace ‘global’ with ‘local’ wherever possible and make use of the Continental Technology Centre and local R&D team keeping costs in mind, he concluded.

Accessing hardware could damage a set or batch of vehicles while software access could damage a phenomenally large number. One software can open the door to all vehicles; however one software could also close that door. “We have put many encryptions in place with cooperation from Cisco.” he said.

Automation In India Ruf said automatic driving

For Continental, the priorities for India, he said answering a specific question, “are satisfying our customers with the right solutions and bettering the instrument cluster so that the driver gets some relief from stress

AutoPartsAsia | NOVEMBER 2015 | 17

CORPORATE

UNO Minda Sharpens Focus On Innovation

By T Murrali

U

NO MINDA has been making significant contributions to the automotive industry supply chain with innovative products. It is a Rs 32 billion (US$525 million) Group and is rapidly expanding with increased market share in its product lines.

The five decade-old Group has 37 manufacturing plants in India, Indonesia, Vietnam and Spain, and design centres in Taiwan and Japan. It has sales offices in the US, Europe and Vietnam, and a strategic sourcing office in China. “Production in our plant in Indonesia is picking up well. Spain is doing okay. We are setting up a new plant in Mexico as a subsidiary of the Spanish division to manufacture horns. It will start production from the beginning of next year. We have opened a new facility in Panesar, Punjab, for lamps and that is doing well”, Nirmal Minda, Chairman and Managing Director, Minda Industries, the flagship company of the Minda Group, told AutoParts Asia.

As a Tier-1 supplier, the company manufactures 2-wheeler switches and handle bar assemblies, electronics and sensors, 4-wheeler switches and heat- control panels, cigar lighters, automotive lamps, automotive horns, alternate fuel systems and CNG-LPG kits, automotive batteries, blow moulding components, seat belts, alloy wheels, wheel covers, air filtration systems, diecasting components, cylinders, steering wheels, fuel caps, body sealing, car infotainment systems, air brakes, clutch actuation systems and automatic gear shifters for OEMs. About 20 percent of the company’s revenue is from international sales. Regarding future plans, he said, “technology with sustainable quality is a challenge because of the export needs.

It is important to achieve zero-defect particularly as we are manufacturing moveable and electrical parts where chances of failure are more than in stationary plastic or metal parts. The longterm plan is to grow continuously to benefit society”, he said.

Focus On Innovation UNO Minda has several patents to its credit. It has doubled the number of filings and registrations in three years. The company has a special focus on innovation.

“Technology is the key factor for us to grow and continue to be in the business. If you do not create and innovate by yourself, you will not be able to sustain. You have to kill your own product - that is our philosophy. If you don’t kill your product in 2-3 years, somebody else will kill you. Therefore, we spend about two per cent of our revenue on R&D against the industry average of less than 0.03 per cent”, Minda said.

18 | AutoPartsAsia | NOVEMBER 2015

N K Minda, Chairman & Managing Director, UNO Minda

Every year UNO Minda has an innovation convention for its group companies where consultants from Japan and the US teach the employees innovation and creativity. The R&D for each of its product lines is different depending on the value-addition need of its customers.

Since UNO Minda’s strategic plan is for vertical growth, it has divided its organisational structure into Engine and Exhaust division, Electricals, and Safety. “Each of these domains has specialists taking care of it; they are very knowledgeable on different product lines”, he said.

Explaining how innovation promoted business, Minda said, “one example would be the flasher unit we introduced in the 2-wheeler first time in India where, after the vehicle takes the turn, there is automatic cancellation or self cancellation. For this we got very good business from the 2-wheeler industry across the country. The body control unit (BCU) was introduced by us. That also got in good business. We were able to integrate or amalgamate two products into one, which gave us an edge over the competitors. There is no obsolescence because the spare parts for the same product are available in the aftermarket and integration not only gives a functional advantage but would also result in a cost saving of 20-30 percent,” Minda said.

INTERVIEW

ACMA Seeks Ecosystem For Innovation, R&D

Arvind Balaji, President, ACMA

Q

: What are your immediate priorities as the President

of ACMA? Balaji: It is indeed an honour for me to be the President of ACMA. I thank all the stakeholders for their faith in me and for entrusting me with this responsibility. This is an especially interesting time in our industry as growth seems to be returning to the sector, though in spurts.

The component industry grew 11 percent registering 20 | AutoPartsAsia | NOVEMBER 2015

a turnover of (USD 38.5 billion, while exports touched USD 1.2 billion in FY15. In the current year we would like to focus on:• New product development and IP creation capability graduating from being a ‘build to print’ to one that is ‘art to part’; • Improving quality capability of Tier-2 and Tier3 suppliers through our cluster programmes; • Contributing to the development of emission and safety standards

The automotive component industry has been asking the Government for the creation of a Technology Upgradation and Development Fund to make the industry globally competitive on the technology front. In an exclusive interview, Arvind Balaji, the new President of the Automotive Component Manufacturers Association of India (ACMA) and Joint Managing Director, Lucas TVS, told T Murrali of AutoParts Asia, that “technology will be a key driver in differentiating us from our competitors. We have to invest in the development of technology and new products.

The component industry has not yet leveraged the academic infrastructure in the country through Industry-Academia linkages. The need of the hour is creation of an eco-system that will encourage innovation and R&D. The market wars of the future will be fought on intellectual property and technology”. Edited Excerpts:

and their adoption in the component sector; • Building auto-electronics manufacturing capabilities; and • Embracing digital technology in manufacturing to improve

productivity and quality.

Q: How do you propose to implement them?

Balaji: ACMA engages with its members and implements its programmes through the various committees.

These goals have been incorporated into the agenda of the respective committees.

The need of the hour is innovation. As India catches up with the new technology trends

such as light weighting, electrification of powertrains, progressive safety and emission norms, the industry will have to evolve to meet the stakeholders’ expectations. The Indian auto component industry endeavours to be among the top five global suppliers. Technology will be a key driver in differentiating us from our competitors.

While the component sector today delivers reasonable levels of quality, we are not yet world-class. It is imperative to raise the bar. This can be done only when the entire ecosystem, especially the Tier-2 and Tier-3 players, starts delivering consistent quality of the highest

standards. In order to help upgrade the Tier-2s and 3s, the Tier-1s will need to play a dominant role in handholding and upgrading them.

The ACMA Centre for Technology runs several

Fraunhofer to help develop a culture of innovation in the industry.

Auto-electronics is a key vertical yet to be explored by the auto component industry in India. We have commenced a study,

which will delineate the opportunities for the industry and will focus on how an ecosystem can be created to harness them.

Q: You have taken over when AMP 2026 has just been unveiled. It has set several targets, including making the Indian automotive industry among the top three in the world. What is your view on these targets from the ACMA perspective?

Balaji: The Automotive Mission Plan 201626 (AMP 2026) is the collective vision of the Union Government and the Indian automotive industry.

It outlines the growth trajectory of the vehicle and the auto-components industry for the next 10 years. AMP 2026 wants the auto component industry to increase turnover to USD 220 billion from the present USD 38.5 billion, and exports to USD 80 billion-USD 100 billion from USD 11.2 billion.

cluster programmes aimed at upgrading the process, and quality-levels in the manufacturing units, including the SMEs. While around 450 plants have been helped to become world-class, we plan to scale-up the delivery from ACMA to cover a larger cross-section of the industry. Our engagement with UNIDO is designed to build capability in the Tier2s and Tier-3s and this too is gaining momentum.

Several companies in the ACMA cluster programme on new product development are engaged in learning how they could embark on a journey of creating new products and IP. ACMA continues to work closely with some of the leading institutions of the world such as MIT and AutoPartsAsia | NOVEMBER 2015 | 21

INTERVIEW These targets are indeed ambitious, and to realise them, the industry and the government have to work in unison. We have to focus on improving the utilisation of existing capacities, improving the overall skill levels of the employees, upgrading the capabilities of Tier-

no denying that quality of products warrants top-most attention. The tier-1s in India are definitely capable of meeting the stringent global quality standards.

The challenge remains with the tier-2s and 3s, which we are trying to address.

With the increase in vehicle recalls globally, the Indian

2 and tier-3 companies and attracting further investments of about USD 80 billion. The government has to work towards strengthening India’s competitiveness as an investment destination for manufacturing, especially by improving ease of doing business and investing in infrastructure.

component industry will have to understand better the liability that arises out of such recalls. As mentioned earlier, the component sector will have to create its own technology and products to be truly globally competitive.

Q: AMP 2026 talks of increasing exports that warrants better quality and safety features. As the ACMA President what are the challenges you see in meeting these vital parameters?

Balaji: With the enhanced consciousness on safety the world over, there is 22 | AutoPartsAsia | NOVEMBER 2015

There are challenges posed by trade agreements – bilateral and multilateral.

Our government should enable us to leverage these in the best interest of the domestic automotive industry, creating access for our products in Indialike markets. It should ensure that India does not become a dumping ground for cheap and substandard products.

In the immediate future, there will be big shift in technology to meet the demanding emission norms. The government should have policies that encourage development and localisation of these technologies to make the Indian automotive industry globally competitive.

Q: Job creation and contribution to GDP seem attractive in their intent but challenging without proper ecosystem.

What will be your role in creating or strengthening the eco system?

A: The Automotive Skills Development Council (ASDC), a joint initiative of ACMA, SIAM, FADA and the National Skills Development Council (NSDC) is entrusted with the responsibility of creating 20 million skilled people in the next few years. ASDC has developed the National Occupational Standards (NOS) for skills required in the automotive industry.

Over a lakh people have been trained in the last one year across the country.

We expect this number to go up in the coming years as there will be more accredited institutes imparting automotive training.

ACMA is actively engaged in enhancing the quality and productivity levels of the industry through the ACMA Centre for Technology. ACMA also engages effectively with the government, both at the Centre and Sates, in the formulation of policy and regulatory framework conducive to the industry.

Q: There is a thinking that the excitement in the manufacturing industry is much less and is not attracting talent. What is your view on this?

Balaji: Yes indeed this is true to an extent, especially for engineers. The younger generation wishes to be employed with the glamorous sectors like IT and software. Preference for the vehicle industry comes next. Only the remainder is available for the component and other sectors of manufacturing.

The component sector absorbs a significant number of ITI/ polytechnictrained and other semiskilled personnel also.

While there is no scarcity of such people, their quality is a concern. ASDC, in due course, will be able to address this issue.

As our industry focuses more on innovation and development of technologies, more engineers would be interested in it. This has been the case in other developed markets.

Q: In the developed markets, people from OEMs come to the component makers and develop customised

INTERVIEW solutions. Industry experts welcome it. Is this happening in India? Is this needed?

Balaji: There is no denying that the OEMs in India too have played a significant role in handholding and upgrading processes and skills in the component sector. However, the intensity of such engagements varies from case to case. We need such collaborations to go to still higher levels like engaging in codevelopment of new products and technologies through shared risks.

Q: What can be done to make the present labour laws more pragmatic?

Balaji: Broadly speaking, the labour laws need to be modified to give industry some flexibility.

State governments like Rajasthan and Haryana have attempted to address this, but a lot remains to be done. The subject, unfortunately, is highly political and despite various representations by the larger industry bodies, there has been no resolution. ACMA is now preparing a detailed white paper on the subject from the perspective of the auto component sector that will bring out the issues for all stakeholders – the employer, the employee and the government – Centre and States. We do hope that our problems will be addressed, especially in States with significant presence of the automotive industry.

Q: FTAs with EU has been surfacing on and off. What kind of deterrent does the Indian automotive industry need to safeguard it from the possible onslaught?

Balaji: ACMA has always believed that FTAs 24 | AutoPartsAsia | NOVEMBER 2015

should be encouraged, provided they result in the enhancement of trade for both the signatories.

Unfortunately the FTAs and the PTAs signed so far have only resulted in increasing India’s imports and not exports.

India should focus on FTAs with India-like markets such as South Africa, Iran, Brazil, Egypt etc., which continue to be highly protected. The government also needs to provide continued R&D and infrastructural support to the domestic industry while exploring strategic trade agreements and making it easier to do business in India.

Many of the components required for new technologies continue to be imported. As technology levels in vehicles increase, the trade balance will get further skewed unless there are proper policies in place.

Q: While the present government is campaigning for Make in India, ACMA has been able to make manufacturing facilities to meet the demand of the OEMs in the country. The need of the hour is ‘creation and invention.’ In the latest Global Innovation Index survey, India is ranked 76, slipping from the 65th position in 2013.

India seems to be the worst performer among the BRICS nations. Your comments.

Balaji: Today, the automotive and auto component industry accounts for around 40 per cent of Indian manufacturing. Therefore, the ‘Make in India’ campaign, which is a blueprint to develop the country’s manufacturing,

resonates well with ACMA’s roadmap for a vibrant auto component manufacturing global-hub in India. There is no denying that to be globally competitive the industry needs to invest in creation of technology and new products. The market wars of the future will be fought on IP and technology. ACMA has been recommending to the Government for the last several years for the creation of a Technology Upgradation and Development Fund, which will make the industry competitive not just on cost but also on the technology front.

Q: What are the impediments in IP development and filing?

How to overcome them?

Balaji: The reasons are many. This is not limited to the auto component sector. It is reflective of the overall R&D culture in the country. The auto component industry has been largely a build-to-print one. While the industry is ambitious to build its own products and technology, it does not know how to take the next step in that direction. Being largely a small and medium-sector industry, its capacity to take risks is limited.

Further, the industry has not leveraged well the academic infrastructure in the country. The need of the hour is creation of an ecosystem that will encourage innovation and R&D. Q: Can you list five key supports from the government that can spur growth of the automotive component industry?

Balaji: The autocomponent sector is one of the 25 sectors identified by the government of India to push through its Make in India campaign.

The campaign is definitely welcome and is creating a ‘brand India’ to our advantage. In my opinion the following key areas need government intervention:• Since the component sector is heavily dependent on the vehicle industry, factors need to be created to enhance vehicle production and consumption in the country. The sector has been stagnating. Though growth seems to be returning, it is a bit slow.

• The momentum of component exports needs to be sustained. Though the foreign trade policy has been favourable to component exports, we need to sign and leverage FTAs that will further encourage component exports, and not imports as is the current situation.

• The aftermarket needs a reform; currently the aftermarket in India is nonregulated and there are no mandated standards for products sold on the aftermarket. We need to mandate ASI standards for the aftermarket products and regulate cheap and spurious imports.

• We need to create an ecosystem that supports innovation and IP creation.

Industry-academia linkages need to be built and strengthened.

• Industrial climate and infrastructure needs improvement.

Issues such as labour laws, ease of doing business, incentivising component manufacturers in tune with vehicle manufacturers, ensuring non-discrimination of manufacturing investments by domestic and international investors etc. need to be addressed.

AFTERMARKET

HORN Group To Introduce New Automatic Oil Management System nitrogen filling of cars, trucks and for the aviation industry.

It is recognised as the global market leader in the design, manufacture and distribution of the most advanced and comprehensive product range.

With over 75 years of experience in designing and manufacturing tyre inflation and compressed air equipment, PCL is a dynamic, customer-focused and forward looking company.

PCL’s products are a familiar sight in garage forecourts, tyre shops, factories and workshops throughout the world. PCL continues to expand globally, providing first-class, reliable and cost effective products for tyre inflation and pneumatics, with localised service in all locations.

Peter Petersen, Business Development Manager, HORN Group

By T Murrali

H

ORN Group, having a product alignment of pumps and fuel dispensing, liquids management, tyre pressure technology and workshop technology, will be introducing soon a new automatic solution within the oil management system.

The company has consolidated the traditional segments of dispensing technology and workshop technology by numerous new products. It has also created new segments like liquids management as well as products for the chemical industry. HORN is engaged on a broad basis in the complete proprietary development and manufacture of components and systems.

The proposed automatic system will be to tap the commercial potential of the mobile devices like smart phones, tablets etc. which a lot of people have Peter Petersen, Business Development Manager at HORN Group, told AutoParts Asia.

“The new system will be an automatic system, but with a slightly different approach from what we have today,” he said.

Major Brands The HORN Group represents today the brands PCL and TECALEMIT. Under PCL the company has airline gauges, air tools, and digital tyre inflators for the automotive market. PCL is the world market leader in digital tyre inflation and

In TECALEMIT, the company has several product ranges starting with electric and handdriven pumps, diesel dispensing systems in combination with fuel management systems, level monitoring systems that monitor the levels of tanks.

It is well-known for state-ofthe-art workshop technology whether it is a car or truck workshop especially when it comes to oil monitoring systems with interfacing to dealer management systems.

“We have been doing oil management systems since 1975. We were in the market with forward thinking monitoring systems. That is the reason we are known to all big OEMs worldwide,” he said.

Petersen said the intentions of an oil management system is to get rid off non-value added activities, help to optimise the processes in a workshop and finally to make the workshop more profitable. There should be a centralised oil supply system with a storage tank. Buying in bulks is less AutoPartsAsia | NOVEMBER 2015 | 25

AFTERMARKET Petersen said that the company has done installations worldwide. “We are present all across Europe, in the US, China and India through partners.

In India the partner is ARO Equipments in Gurgaon, New Delhi”.

In India, TMS is installed at the Deutsche Motoren in Faridabad, a well-known BMW dealer in North India, and at Amana Toyota in Kerala. Petersen hopes that there would be more orders for the product from India. “When I look at the road

ARO is a leading automobile equipment manufacturer and supplier. It has its factory and head office in Gurgaon and has sales and service centres all over India. ARO has more than 200 products to cater to HCV, LCV, Cars and twowheeler segment. The product range covers tyre service, engine diagnostics, lube service, electrical service, AC maintenance, tools and lifting equipment.

expensive than buying drums or cans and there was a saving in the initial stage itself. Pilferage and spillage will be avoided.

About the actual operation of the system, he said: “Attached to the tank is a pump with piping that goes straight to the work places, to the lifts, into the pits - wherever oil or any kind of automotive fluid is used.

Workers often pick up oil from the warehouse. They leave their work places for that. It is very time- consuming, an average of four to five minutes every time. But here the worker just has to pull out the hose from the hose-reel to get accessed to our automated system using his personal identification and job card number- That’s it! Oil where it is needed”.

The required quantity can be set in several ways. It can be preset by the dealer management software that is running in the workshop or by TECALEMIT’s own software. The dispensed data is measured and goes back to the central unit and is transmitted to the software.

“There is no paperwork, no human failures. It is a complete automated system. At the end of the day such a system is saving time and time is money”, he said.

26 | AutoPartsAsia | NOVEMBER 2015

Petersen said there was tremendous scope for oil management systems in the Indian market. The spiralling land price which makes the relocation of a workshop to a place outside the city centre to accommodate more vehicles almost impossible.

The workshop owner will have to do maximum business with the limited space he has at his disposal. With a TECALEMIT system in place, he can achieve better efficiencies and service more vehicles and increase earnings. The advantage of the company’s oil management system is the savings that can be made by reducing oil shrinkage from spillage, mishandling, inventory errors and optimized processes, he said.

New Solution A new solution from TECALEMIT for lubricant management is TMS, a management system that is really unique which can control up to 10 different fluids with simultaneous dispensation of five. TMS is versatile, more reliable and easier to install than any similar solutions. In Germany TECALEMIT’s major customers include Mercedes, BMW, and MAN Truck workshops.

construction here, I feel more and larger vehicles will come in. The complete infrastructure is going to be rebuilt and modernised. There is a new spirit of mobility here with more people wanting to own new cars. This gives me a feeling that this is a market to focus on.

May not be by 2016 but latest by 2020, this will be a market that will go through the roof.

That’s what all the OEMs are saying”.

About the marketing of TMS, he said that: “We have several certifications from vehicle manufacturers based on which we will approach the garages.

The way to the market is slightly different. On the one hand we have to get contacts with OEMs for the approvals; get in touch with their regional headquarters to increase their awareness. We need to have a local partner for the installation. Very often we have to hold discussions with the oil companies to subsidise, to some extent, this kind of equipment”.

AFTERMARKET

Aftermarket Is Mainstay of Liqui Moly international or domestic, are targets for us for business promotion,” Hmayag Sanossian, Managing Director, Liqui Moly Middle East, told AutoParts Asia.

With the improvement in automotive technologies and qualitative improvements of the oils and lubricants, the frequency of the need for their replacement in vehicles has come down from 5000km to 10,000 km or even 15,000 km. However, this has not affected the sales volume of the company.

APA Bureau

L

iqui Moly, the Germany-based manufacturer of oils and additives, is focused on value creation for its customers. It is expanding the product ranges to promote sales growth and innovative high-tech products to enter lucrative market niches and create new customer bases. The company constantly produces innovations which help its customers penetrate new markets and business areas and use them to streamline their corporate image.

Now the company has gone beyond oils to all kinds of petrochemicals.

“We have about 4,000 products suitable for 95 percent of industrial applications. We do oils and lubricants, we do additives. They are very good and well accepted in the market. We have started with several OEMs also and we are in talks with many big brands. However, the present focus is aftermarket. We do a lot of marketing. All exhibitions, 28 | AutoPartsAsia | NOVEMBER 2015

“The main point is that our production capacity is constantly increasing because the demand is growing. The number of cars and other vehicles are increasing. The lubricants can last even up to 40,000 km. Being a German company we care a lot for the environment.

Environment is the most important thing for us. We are extending the oil life to 30,000, 40,000 and 50,000 km depending on the circumstances because they are environment- friendly. The increasing vehicle population keeps us moving.

We are daily having new ideas and innovations”, he said.

The increasing number of compact and fuel efficient cars is posing a challenge to the companies, both the manufacturers and suppliers to cater to a larger segment where the margins are less. Liqui Moly, he said, converts this to an opportunity by making substantial investments to get the right product.

“Definitely margins are important.

Margins are which keep you running.

If there are no margins, a company will have to go packing. The main point is that margins vary according to the specification of the product and at the end of the day if there is

an overall margin that doesn’t matter how much you sell. The volume is not as important as the specification.

You will have to invest to get the right product, which many will not do”, he said.

Liqui Moly prefers to confine itself mainly to Germany. It has no plan to set up plants in other locations outside. “We are number one in Germany. We are not a big player. We are one of the biggest as a private company. But we cannot compete with big petroleum companies like Shell, or BP. But we are a very wellknown private company as we are focussing on marketing to inform the customer about the brand and try and see the difference and the real value for money they get”, Sanossian said.

COVER STORY

Infrastructure Drives Construction Equipment Industry

30 | AutoPartsAsia | NOVEMBER 2015

There is a symbiotic relationship between infrastructure and economic development. Proliferation of infrastructure triggers economic growth. Similarly economic growth fuels infrastructure development.

The construction equipment and the off-road sector, both part of the automotive industry, have great role in supporting infrastructure creation. Their relevance gains importance with the Union Government’s Automotive Mission Plan 2016-2026 (AMP 2026). Only through infrastructure and economic development will the Government’s plan to take India to the third position in the global automotive arena in a decade be realised.

In India infrastructure expansion has been much lower than the demand. Infrastructure cannot be created without the contribution from the construction industry which depends heavily on the construction equipment segment of the automotive industry. These intertwining relations are intrinsically linked to the AMP 2026.

By T Murrali

A

MP 2026 wants the automotive industry to grow in value to over 12 percent of India’s GDP and generate an additional 65 million jobs during the next decade. One of the key objectives of the mission plan is to promote efficient and comfortable mobility for every person in the country, with an eye on environmental protection and affordability through both public and personal transport options. It also aims at creating world-class infrastructure for the automotive industry focussing on power supply, ports, railways, and roads.

Infrastructure investments are among the main growth drivers of the construction equipment industry. Investment

in infrastructure has been the guiding principle of many policy initiatives and interventions of the Union Government. India’s Infrastructure spending has been estimated to be in the range of US $ 1 trillion during 2012-2017. The government has granted special incentives, including a large number of special economic zones (SEZs), to the capital goods industry of which construction equipment is a part.

Huge Potential The desired level of infrastructure development will be possible only with the corresponding growth in the construction equipment industry, which has immense growth potential. Construction

equipment refers to heavyduty vehicles, forklift, wheel loaders, mobile cranes, crawler excavator, backhoe loader, batching plants, transit mixers, mobile compressors, compaction equipment, asphalt finishers, boring machines, motor graders, crawler dozers, mini excavators, pavers etc.

They are specially designed for executing construction work, earth and materials moving operations, material preparation, material handling, tunnelling and drilling and similar other works. They offer efficient, accurate, easy, and cost-effective solutions for the construction of complex and high-quality infrastructure.

With the government’s thrust on infrastructure development, AutoPartsAsia | NOVEMBER 2015 | 31

COVER STORY market analysts estimate that the construction equipment industry will have a cumulative annual growth rate between 12 percent and 20 percent during 2015-2020. By then the market size of the construction equipment sector in India is expected to grow to $17.5 billion.

However, the construction equipment industry has to face multiple challenges to achieve this long-term potential. The most important challenge is from the infrastructure sector as the construction equipment industry mainly depends on it. Infrastructure penetration is far behind demand and happening at snail’s pace.

Major hurdles to growth in the infrastructure space pertain to land acquisition, long-term funds, planning, procedural clearances, financial viability and governance.

Ecosystem challenges like lack of skilled manpower, especially machine operators, equipment funding, availability of components and aggregates, variability in OEM demand, technology gap in

adoption and demand, also stunt the realisation of the potential of the construction equipment industry.

Elusive Red Carpet The fortunes of the equipment manufacturing companies in India depend on the government investment in 32 | AutoPartsAsia | NOVEMBER 2015

infrastructure. Their growth, in turn, will take the automotive industry closer to the ambitious target set for it in the AMP2026 by the Government.

In order to fast-track the proposed infrastructure development, the government is expected to clear bottlenecks in obtaining clearances, and transform ‘Red Tape’ to ‘Red Carpet’.

Nobody is sure how many red signals will have to be crossed to reach the promised but elusive `Red Carpet’ The automotive industry in general has to face several challenges. It is estimated that the industry may need about $100 billion investments.

However, merely getting investment proposals will not help the industry accomplish the objectives of AMP 2026.

To make them happen the automotive industry should have its own infrastructure in place. Infrastructure is the key. There should be at least two more automotive clusters in the country, in addition to the existing ones in the National Capital Region (NCR), Pune, Chennai, Bangalore and the evolving one at Sanand in Gujarat, to meet the government’s objectives.

For the development of this infrastructure, road, rail and port connectivity is inevitable.

Only better infrastructure will speed up projects and save money and other resources and make project implementation faster and cost-effective. While

the commercial vehicles play peripheral role in creating infrastructure, the off-road vehicles take the lead in creating it. But their production and availability depend on the government investment in infrastructure projects, and facilitating public-private and private investments.

Infrastructure projects often suffer from lack of funding or are subject to many conditions by lenders before funding.

Competitive Technology There are several construction equipment manufacturers in India. The important players are: Bharat Earth Movers, Tata Motors, Ashok Leyland, Daimler India, Caterpillar, JCB India, Volvo India, Komatsu, Scania, Hitachi Construction Machinery, Liebherr etc.

Some important questions about the construction equipment industry are: Whether the technologies available in India are worldclass and state-of-the art? Are the technologies offered by the construction equipment manufactures in India equal to the demand? Is there any lacuna in technology?

According to Rajesh Kaul, Business Head (IM&HCV Trucks) Tata Motors Ltd., the available construction equipment technology in India

is of international standard.

He said, “At Tata Motors our CONSTRUK range of tippers provide unmatched benefits of trucks, easily comparable to the best in the world. India hosts several global construction equipment manufacturers, either as standalone entities or through joint ventures with Indian players”.

Tata Construck Tippers cater to the widest range of applications like road construction, irrigation, coal and iron ore mining, real estate, tunnel projects, marbles, port handlings, bricks, lime stone, concrete mixture, municipal projects etc.

According to Kaul, Tata Motors is the first company to introduce common rail engines, automatic transmission, cruise control and ABS technologies on their trucks. Besides, it introduced the 4-axle rigid truck, 5-axle twin steerable rigid truck and Prima & Prima LX range of trucks.

The Managing Director of Ashok Leyland, Vinod Dasari, said that India did not suffer technologydeficiency. “The question is about appropriate technology suited to Indian conditions.

Technology force-fitted into Indian conditions leads to cost and operational inefficiencies.

At Ashok Leyland we have

always championed the cause of appropriate technology, best-suited to the needs of our customers. We have been committed to ensuring innovation that works in the real world. Our committed position is ‘Aapki Jeet Hamari Jeet’ or ‘Ungal Vetri Engal Vetri’. We passionately believe that in the success of our customers lies our own, and are constantly looking to innovate to make this happen”.

About the technological changes in the construction equipment industry, Florian Laudan, Head, Daimler Trucks Asia- Corporate Communications, said that, “As any industry, the construction equipment industry is in a phase of change to more modern equipment. Every manufacturer has to reflect that change in the product portfolio without offering too advanced products that the customers are not willing to pay for. It is the balancing act every manufacturer has to manage.

At BharatBenz we have the advantage, that all the modern technologies already established in mature markets like Europe or the US, are accessible for us within the Daimler Trucks portfolio. This means we can introduce technologies with a very short time to market, whenever the demand arises”.

However, a growing economy as India should never cease to innovate, Anders Grundstromer, the Managing Director of Scania Commercial Vehicles India, said. “To keep up with the growth momentum, usage of advanced technology should not be limited. That is why at Scania we never believe in manufacturing standard products. All our products are superior in technology and

same throughout our markets.

Indian construction market is very welcoming when it comes to technology and innovation.

People look at employing new technologies to stay competitive in the industry.

But the challenge is that the OEMs in India are yet to break the conservative approach of designing and developing new products. I also believe that the current growth rate of construction industry will necessitate the introduction of new technology as and when the demand surfaces.”

Volvo has been driving progress in the industry with advanced technology & innovative offerings. Rama Rao A S, Senior Vice President, Sales, Marketing and Aftermarket, Volvo Trucks, VECV said, “Our products are benchmarks in quality, safety, reliability and durability.

We focus on delivering superior vehicle uptime, driver productivity and fuel efficiency as these matter the most to customers. Our technologically advanced products and momentum in the industry with the new Central Government’ intention to revitalise the mining sector have provided the right environment. The initiatives like transparent e-auction of cancelled coal blocks, the new legislation to speed up and stabilise the mining policy, lifting of mining ban in certain States to revive the domestic iron ore mining (though with a cap on production), allotting non-operational mines to States for commercial coal mining etc. augur well for the construction equipment industry’’.

Factors Beyond Technology Technologies are important for the construction equipment industry. But there are several factors that limit the implementation and effectiveness of these technologies, Kaul said. He listed them as low availability of qualified manpower to operate such equipment, AutoPartsAsia | NOVEMBER 2015 | 33

COVER STORY inadequate training and safety in operations, lack of easy financing and unfavourable rental rates and taxes, regulations for procurement of such equipment, absence of coordination among multiple stakeholders in the execution of infrastructure projects.

“Technology may not also be seen as a key differentiator for the success of a project now. When the market becomes more organised and competitive, technology will become increasingly important as it will drive efficiencies, enable better quality of service, enhance margins and profitability, provide better fuel efficiency, reduce downtime, command better resale value and retain customers”, he said.

Kaul threw more light by saying that “the demand for construction equipment and commercial vehicles is directly linked to the macro-economic environment in the country and implementation of infrastructure projects. Improvement in some key infrastructure areas, driven by road projects getting cleared or opening up of the mining sector, will contribute favourably to the demand for construction equipment.

Fluctuating value of the rupee, spiralling fuel prices and problems in financing are factors that hamper the growth of the sector. On all these parameters, the last three years has been extremely challenging”.

Government policy interventions, improvements in macro-economic trends, speedy growth in infrastructural projects and good investment sentiment will be necessary to see a real and comprehensive change in the commercial vehicle and the construction equipment segment.

“We hope that a stable government at the Centre will promote investment, develop infrastructure, revive the mining sector, and undertake tax reforms. They will definitely help 34 | AutoPartsAsia | NOVEMBER 2015

sustain demand in the medium and long-term and bring about a real turnaround in the construction and commercial vehicle industry,” Kaul added.

About the technological solutions that speed up infrastructure projects, Dasari said that “higher performance capacity and productivity are vital to infrastructure development, precisely what our company’s products deliver”.

Laudan from BharatBenz said that infrastructure development was very important for the growth of the construction equipment industry. He said the government could clear the infrastructure bottlenecks by making investor -friendly policies, fast-tracking government fund release, offering incentive packages and transparent implementation of GST, ensuring adequate power supply, upgrading urban infrastructure at least to the level in other Asian countries, and time-bound completion of assurances given to industries under the MoUs.

Excon Sets The Tone The Confederation of Indian Industry (CII), India’s premiere industry association, presents the biennial Excon, the largest Construction Equipment Exhibition in South Asia..

The 8th edition of Excon is scheduled to be held during

November 25-29, 2015, in Bengaluru, Karnataka. Every alternate year Excon sets the tone for the operations and growth of the construction equipment industry for the following two years.

Tata Motors sees Excon as one of the biggest exhibition for construction equipment. The company has been participating in this event since inception.

Kaul from Tata Motors said that, “We are excited to showcase our state-of-the-art vehicles at Excon 2015. At this show we will once again present an extensive range of construction vehicles”. In 2013 the company showcased six new highpowered construction vehicles from its Construck and Prima LX range.

For Ashok Leyland Excon is an important industry platform to showcase its latest range of products and technologies to customers looking for efficient and reliable transport solutions.

“We have always been at the forefront of technology and this year, we will display a range of vehicles class-leading in design, driver comfort, technology and cost of operations. The Captain series, launched recently, offers the best mix of experience and efficiency. Excon will be a great platform for these products, especially in the light of the expected boost in infrastructure investments.

The company plans to showcase Captain 2523 HR, offering better driver comfort, reliability and AC cabin; 3123high capacity surface tipper; 4923 tip trailer with 30cum body capacity tip trailer, and SASSY Container workshop”, Dasari said.

For BharatBenz, which has a wide range of products for mining and construction, “Excon is a great platform to showcase these products, especially our recently launched 3143 Mining truck. This power- packed product from the DICV Portfolio is the first indigenised tipper truck for the Indian deep mining segment.

It comes with the trusted and proven OM 457 Mercedes-Benz

engine, with a 12 liter capacity and six-cylinders delivering 430hp. The key differentiator that BharatBenz offers in this segment is its low acquisition cost and cost effective running and maintenance cost”, Laudan said.

He said that it was for the first time that BharatBenz was participating in a large industry event like Excon. So far the company has been inviting customers to events and

product demonstrations in its own premises at Oragadam near Chennai. “But with the continuous growth of BharatBenz in the market, we believe it’s a good time to reach out to an even wider set of customers”, Laudan said.

Excon is important for BharartBenz as it will have a wide variety of audience under one roof. “It gives us the opportunity to get in contact with customers, that haven’t found the way to our showrooms so far”, he said.

With an installed capacity of 36,000 units a year, which is scalable to 72,000, BharatBenz offers a wide range of choice for the construction and mining

segment. The DICV product portfolio includes the 2528C, 3128C, 3143. They are powerful workhorses that provide maximum productivity, superior power and torque that make them capable of handling any tough terrain.

Volvo’s Rama Rao said, Excon 2015 should provide right platform for the industry to showcase the new offerings to the customers who would now be more interested in

purchasing new equipment in the context of the developments on the infrastructure investment front.

Rama Rao said Volvo Trucks would display the complete range of innovative mining transport solutions built-on the robust and reliable FMX platform that would redefine productivity and efficiency along with the gamut of industry leading support services. “You can expect a range of innovative products including mining tipper and dump trucks to be introduced to the market at the current Excon”, he said.

For Scannia’s Grundstromer, “Excon is a wonderful platform to display our products, meet and interact with potential customers, dealers, contractors and other stakeholders. Over the years the show has shown good growth in terms of exhibitors, visitors and business enquires. Considering the fact that two percent of GDP is driven by the infrastructure industry, it is inevitable that Excon 2015 will continue to grow in popularity, participation and business enquiries yearon-year. The increasing number of international pavilions at the show is a testimony to the fact that the event is becoming popular in the international circuit also”.

Infrastructure has been the key determinant in any growing economy. China had been pouring concrete across the country to create road infrastructure decades ago.

The country had realised the importance of these facilities. It became China’s USP for faster investment flow despite issues pertaining to the setting up of manufacturing plants.

In India, the government needs to take conscious decisions to create infrastructure that will generate investments for achieving the goals of AMP 2026. Without that the dreams will be wingless.

(With inputs from Joseph Vackayil) AutoPartsAsia | NOVEMBER 2015 | 35

INSIGHTS

Construction Equipment Industry Builds Stronger Economy Construction industry is one of the diversified industrial sectors that has great impact on the economy of a nation. The world construction equipment market is likely to rise from $109 billion in 2008 to over $150 billion in 2015. The AsiaPacific market may grow to over $110 billion by 2020 owing to investments in roads, ports, and other related infrastructure projects in countries like India.

By Louis P Rumao

C

onstruction industry makes vital contribution to the competitiveness and prosperity of the economy of a country. A modern and efficient infrastructure is a key driver of productivity. The construction industry plays a major role in creating infrastructure in an innovative and cost-effective manner. Manufacture and sales of construction equipment and commercial vehicles are reliable indicators of economic activities.

However, this is a cyclical industry with revenue booming according to the economic growth trends.

Leading players of the world market are Caterpillar Inc. (US), CNH Global NV (The Netherlands), Hyundai Heavy Industries Co., Ltd. (South Korea), Volvo Construction Equipment AB (Sweden), JCB Ltd. (UK), Komatsu Ltd. (Japan), and Deere & Company (US). The construction equipment market size was estimated at around (US) $150 billion in 2014. Asia-Pacific construction equipment market constituted over 50 per cent of the overall revenue in 2014. China accounted for over 80 percent of this, followed by Japan, Australia,

36 | AutoPartsAsia | NOVEMBER 2015

Indonesia, and South Korea. The Asia-Pacific market is expected to grow to over $110 billion by 2020.

Caterpillar of the US and Komatsu of Japan were two of the largest construction machinery manufacturers in 2014, generating around $28 billion and $17 billion, respectively, in equipment sales.

In the US alone, the construction machinery manufacturing sector is expected to have generated $ 56 billion in revenue in 2014, up from the $27.24 billion in 2009. China’s market is expected to rise from around $ 33 billion in 2010 to about $ 44 billion in 2015.

Types of Equipment The various types of construction equipment include earthmoving equipment, excavators, loaders, backhoe, motor graders, material handling equipment, cranes, telescopic handlers, heavy construction vehicles, dumpers, tippers and other heavy construction equipments like compactors, road rollers, and pavers/asphalt finishers etc. They are used for excavation and demolition, heavy lifting, tunneling, material handling, recycling and waste management etc. They serve mainly industrial sectors like infrastructure, construction, mining, oil & gas, manufacturing, forestry etc.

Concrete and road construction equipment, primarily batching plants, pumps, mixers and graders enjoy a growing demand for infrastructure improvements, such as highway construction, industrial structures, bridges, power plants and irrigation systems, especially in the developing countries.

Cyclic Industry The Construction machinery manufacturing industry experienced volatile conditions in the US during the period between 2008 and 2011, especially with weak private residential construction, which resulted in weak demand for machinery. A hoped-for strong future rebound may be dashed by lower commodity prices and a strong dollar. As expected, the industry parallels the overall economic cycles.

One published index shows the comparative activity as follows: Year

Index Value

2000

100

2005

160

2010

60

2015

140

Recently, global business news was dominated by the Greek debt drama and the Chinese stock market

INSIGHTS plunge. For the global economy, China’s decelerating growth was of special concern, which has dropped to its lowest level since 2014, affecting the export-dependent construction machinery industry of the US. Caterpillar has reduced its 2015 revenue guidance to $48 billion from $49 billion. The world’s largest construction and mining equipment manufacturer also expects its 2016 revenue to decline five per cent year-over-year. The company has announced a cost-cutting plan that will lower annual costs by about $1.5 billion. It will begin this with about 5,000 job cuts through the end of 2016, and another potential 10,000 through 2018.

Caterpillar plans also to close about 20 facilities, or 10 per cent of its manufacturing area, and consolidate operations, as a result of falling construction equipment sales and weakness in mining equipment orders due to lower copper, coal and iron ore prices. The nearly 60 percent drop in oil prices since June will not only affect Caterpillar’s energy business, but will also hurt construction projects in oil-producing regions. Caterpillar expects lower construction equipment sales in China in 2015 due to a weaker market. The stronger dollar should hit revenue from products sold overseas.

Company officials said around 50 percent of the expected sales decline was directly or indirectly related to low oil prices.

Deere and Co. also reported that worldwide net sales and revenues for the first quarter of 2015 decreased 17 percent, to $6.383 billion, compared with $7.654 billion last year. Net sales of the equipment operations were $5.605 billion for the quarter compared with $6.949 billion a year ago.

Competitive Insights Growing focus on infrastructure and increasing mechanisation of manufacturing processes are the key factors driving the market. Increased penetration of Chinese construction machinery into the premium product market has challenged existing manufacturers like Caterpillar.

All equipment manufacturers need to meet emission regulations set by regulatory bodies, have to lower production cost by increasing investment in R&D activities and to strengthen their distribution networks to ensure global presence. As in any other industry, innovation and strategic alliances remain to be the key growth strategies for this sector also.

However, the construction contractors and other industry stakeholders are optimistic about the revival of the industry. Wells Fargo Equipment Finance unit publishes Construction Optimism Index report, based on the responses of construction contractors and equipment distributors from across the US. For 2015, it reported an index value of 130, exceeding the previous high of 124 in 2014. This index was 110 in 2005 and an abysmally low 45 in 2009.

Despite predicted growth, the demand

38 | AutoPartsAsia | NOVEMBER 2015

for higher wages and benefits, rising healthcare costs, taxes, trade restrictions, emission regulations and competition from abroad are some of the challenges to growth for the American construction equipment industry.

Regardless of the rationale, a precipitous decline in oil prices can be problematic as well as beneficial. Initially, the decline in prices benefits any company that purchases commodities. Airlines certainly benefit from lower fuel prices, and consumers are saving money at the fuel pump. However, the declines have caused commodity producers to slash budgets and switch from growth to survival mode.

When an oil producer decides to cancel a large project, the company contracted to construct the project cuts their budget as well. Then the company that manufactures tools and equipment for the construction company sells less products, and it ripples throughout the economy, resulting in lower growth and fewer jobs.

Commodities Decide Many American companies, including the construction equipment manufacturers, rely on exports of goods and services. A strong dollar reduces the attractiveness of their exports. An overseas company that purchases goods from the US has to pay more for the imports – it either buys less of the US-made products, or goes elsewhere.

Growth in global demand for commodities like coal, steel and oil leads to expansion of capacity, production, and higher demand for equipment. But lately, commodity prices are in a free-fall. One published price index for bulk commodities – iron ore and coal – with a base value of 100 in 1990, and the high of 600 in 2011, has retreated to the current value of 200 in mid-2015.

Similar decline has been seen in price for oil. The impact of these price declines has been much larger than most forecasters had anticipated.

Again, this has affected construction equipment industry globally, as shown by the recent financial results from Caterpillar and John Deere.

Photos Courtesy: Caterpillar; used for representational purpose only.

SPECIAL REPORT

National Engineering Expands Bearing Production Capacity Haryana) and Savli in Gujarat.

Founded in 1946 as National Bearing Company (NBC) and renamed in 1958 as National Engineering Industries, while retaining the original trademark `NBC’, this CK Birla group company is India’s leading manufacturer and exporter of bearings. The company that commenced manufacturing in 1950 with an annual production of 30,000 bearings in 19 sizes has now grown in range and stature. It makes bearings in sizes ranging from 25mm to two metres for customers across India and 21 other countries in five continents.

Product Range Rohit Saboo

By T Murrali

N

ational Engineering Industries Ltd (NEI), which manufacturers bearings under the brand name NBC, is investing Rs 700 crore to set up a new plant in at Savli in Gujarat. It is being done in two phases.

The first phase, involving an investment of `350 crore, will be completed by March, 2016. The second phase would be ready by the end of 2017. With this the bearings production capacity of NEI will go up 40 percent to 140 million a year, Rohit Saboo, CEO, NEI, told AutoParts Asia.

NEI has production plants in Jaipur and Newai (both in Rajasthan), Manesar (in

The product array of NEI includes ball bearings, tapered roller bearings, and double row angular contact bearings, cylindrical and spherical roller bearings. The company has specially equipped facilities to manufacture axle boxes for railway applications; cartridge tapered roller bearings and large diameter bearings for industrial applications and allied engineering products.

NBC bearings are widely used by two and threewheelers, cars, trucks, tractors, electric motors, railway wagons, coaches and locomotives, steel mills, heavy engineering plants, bulldozers, shovels, tillers and thermal power plants.

For the Indian Railways the company makes three sizes of bearings and it is developing the fourth size for export. All the four are exported to Amsted Rail and South African, American and Brazilian Railways. “We have shipped very small quantities to China also,” he said.

NBC has been producing Axle Boxes for the railways since 1952. The company designs

40 | AutoPartsAsia | NOVEMBER 2015

and develops Axle Boxes and bearings for locomotives manufactured by Diesel Locomotive Works, Chittaranjan Locomotive Works, various other wagon builders, and the ICF for broad and meter gauge coaches. Over a million NBC bearings and boxes are in service with the Indian Railways.

The NBC brand commands a market share of 24 percent in the domestic market. Almost 70 percent of NEI’s sales are to original equipment manufacturers and 30 percent into the replacement market.

The automotive and railway industries form the two largest client segments. It serves the Indian aftermarket through a countrywide network of 500 plus authorised partners. The company currently employs over 2,700 people.

The turnover approximates 60 percent from the automotive sector (OEM and aftermarket),

30 percent from railway products and 10 per cent from the low volume industrial applications.

During the first five months of this fiscal NEI has grown 16 percent, owing to exports mainly to the US and Germany.

Exports contribute almost 25 percent of revenues. “We are

expecting a CAGR of 20 percent till 2020. That is our current expectation which is double the Indian market expectation. Last year the turnover was Rs.1,650 crores”, the CEO said.

People-Centric Process The efficiency of any bearing depends upon design and the manufacturing process. NEI has been aiming at superior quality and zero rejection. “As far as line rejections are concerned we are at one ppm, (parts

people on the line that do the setting simultaneously. We have now come up with a concept of ‘first piece okay.’ Earlier we would do the setting and try out some part by the hit-and-trial method. For the last two years our method is that the first piece has to be perfect, absolutely okay. This has helped us that the first piece coming out of the line is right adhering to the specifications. It means we take care of our process right from the first piece; the settings are perfect and we have just to replenish the consumables”, he said.

To a question on how the company’s associates are equipped and processes

Innovative Products/ Processes During 2014-15 • Generation3 Wheel Bearing: an OEM driven technology where the customer is needing more of an integrated product with high reliability • Clutch Release bearing for tractor: an innovative product solution developed under partnership project with the customer to provide

integrated solution and resolving the current problem. NEI also applied for patent for this product • PAGR Heat Treatment: This development is an in-house driven continuous improvement technology where the endurance life of bearing is further enhanced by improving yield strength during heat treatment.

per million), and for warranty returns it is three to four ppm.

We have bettered ourselves almost 10 times in the last four years. Things like Deming do bring quality to the minds of people which is very important because no matter how much technology you put in the manufacturing process, you are still dependent on people.

Any programme like Deming or TPM gives the same message to everybody. People make the difference. We believe in the 3 Ps - people, products and process”, Saboo said.

Setting To Perfection In the production process, the real challenge was on the people front and people have to be trained, he said. “When we set a new part, the setting has to be perfect. There are six

adjusted to achieve this, Saboo said, “there are three aspects to this. One is that the tooling has to be perfect; when we change the part numbers the tooling has to change accordingly.

They have to be absolutely perfect from the design to the manufacturing and incoming checking stage. Secondly, the setting of the tooling has to be perfect. The third is the people, and that would involve a lot of training, taking into account all the dos and don’ts. Earlier we would accept some deviations but now we don’t. The result of

this is that a lot of discipline has come into the process”.

Driving Force The CEO said that the driving force for NEI to come up with such innovations is that, “Our group from the Chairman downwards is hungry for growth, hungry for betterment, hungry for quality. There is an internal drive that we have to better what we have achieved yesterday. That betterment thinking has been driving us.

Our growth targets are unlike anything normal. It’s disruptive, which means we have to invest a lot”.

Innovative Approach The company that recently received the ACMA Award for Excellence in Technology in recognition of its technological capabilities, has always been trying to find new ways for growth, productivity and quality.

For example, Saboo said, “our core activity is grinding where the contact parts are ground and super-finished. We are now using a very innovative and new coolant technology wherein the power required to grind a particular race can be reduced by 20- 22 percent.

This is a Japanese innovation which we are trying to develop and implement. It is environment-friendly, gives more productivity and increases the life of the grinding wheels, and eventually consumes less power. The overall equipment effectiveness for the whole plant last year was 72 percent, this year it is 75 percent. There is three percent increase in productivity. This is a continuous process” he added.

AutoPartsAsia | NOVEMBER 2015 | 41

PERSPECTIVE

High-Value Features To Make China Global Truck Market Leader The growing e-commerce market and availability of upgraded and new truck models are anticipated to stimulate new truck sales in China. The country offers optimistic market opportunity for global commercial truck makers and components suppliers.

By Chan Ming Lih

C

hina is one of the most attractive commercial truck markets in the world. It has progressed into an automotive manufacturing base driven by advanced technology and a capital-intensive industry. Although the commercial truck market was down by 11 percent from 2013 to 2014, market growth is expected to be back on the agenda in the medium to long-term (3-8 years).

China’s commercial truck sales are likely to increase by 1 million units during 2014-2022 at a compound annual growth rate (CAGR) of four percent, from 2.65 million units in 2014 to 3.63 million units by 2022.

This region symbolises an optimistic market opportunity for global commercial truck makers and components suppliers.

Commercial truck market demand in China is expected to accelerate further mainly driven by stable and continuous growth of the e-commerce market. This will lead to a surge in demand for road transportation, regulations on commercial truck emission standards, and the expansion of road network in China.

The overall Chinese e-commerce market is

42 | AutoPartsAsia | NOVEMBER 2015

on an upward trend with high rate of penetration of internet use. The success of Alibaba e-commerce and Alipay transaction platform are emerging in the e-commerce activities in China. The growing number of businesses and the e-commerce trend sweeping the country are creating new opportunities for postal delivery and logistics services in primary and secondary industries.

Close to 38 billion tonnes of high volume road and port logistics are demand generators for the commercial truck industry in China.

Subsequently, the revision of emission standards has lined up a slew of new truck launches going into 2022. Several models are expected to be introduced during 2015-2022, including new offerings from China National Heavy Duty Truck Company’s (CNHTC) new Howo, Shaanxi’s new Delong, Dongfeng’s new Chenlong, Foton’s new Aumark, and so on. Availability of upgraded and new truck models is anticipated to stimulate new truck sales.

There is also a rise in construction of cross border and on national expressways. The continued roadways expansion in the country which is at a 2.5- 4

percent year-on-year growth rate, is driving a more feasible logistics solution. The Chinese Government is likely to link Chinese cities to the neighbouring countries and increase inland construction concentration.

The Government is also connecting inland areas with key trading cities through expressways, such as from Beijing to Lhasa.

Nonetheless, weak innovative design ideas, long product life cycles, and GDP slowdown are likely to be the main restraining factors for the Chinese commercial truck market in the medium to long-term. To reform market growth in the long-

Local OEMs To Lead Meanwhile, the Chinese commercial truck industry has nearly 50 truckmakers, of which 20 percent are active OEMs. Local OEMs, including Foton, Dongfeng, First Automobile Works (FAW), and CNHTC, are dominating the commercial truck market in China.

This trend is likely to continue in the long-term.

Several of the OEMs are only concentrating on the light-duty truck segment.

Nevertheless, Foton and Dongfeng are well represented in the three truck segments, light, medium, and heavy-duty hauls.

At the same time, foreign OEMs have entered China through the joint-venture business model. Several joint-venture OEMs such as Naveco, SAIC-Iveco Hongyan, and Sichuan Hyundai are well-operated in China.

term, domestic truck OEMs are required to prioritise both design and engine technology development.

Also, greater value in terms of better truck

PERSPECTIVE features, ‘value’ prices, and good aftersales services are expected to lead a rising on commercial truck market demands.

Market Segmentation The Chinese heavy-duty truck (HDT) segment touched 0.74 million unit sales in 2014 with top five OEMs holding 81.7 percent, which include Dongfeng, CNHTC, FAW, Foton, and Shaanxi Automobile Group.

The market share of these top five leaders will be further consolidated to achieve nearly 86 percent joint market share by 2022.

The market entry barrier for HDT segment is high. Top market share leadership will remain unchanged during 20142022. However, Foton (the fourth HDT market leader) is likely to close the gap on FAW through full utilisation of Daimler’s advanced technology.

The demand for mediumduty trucks (MDT) is low as it is the least attractive market segment in China.

It only accounted for less than 10 percent of market share in total truck sales in 2014. Key market leaders are Dongfeng, FAW, CNHTC, Lifan, and Qingling. Meanwhile, Dongfeng and FAW are forecast to further their joint domination of the MDT segment, exceeding 45 percent of the combined market share during 20142022.

However, due to the increased penetration of broadband Internet, 44 | AutoPartsAsia | NOVEMBER 2015

mobile Internet, and rising e-commerce, the demand for MDT is skewing toward light-duty trucks which are used for final door-to-door delivery services.

Comparatively, the lightduty truck (LDT) market is the most competitive segment due to the sheer sales volume plausible in China. It gained larger market attractiveness in China over the last few years, and reached 62.6 percent of sales market share in 2014. A multitude of OEMs with little product differentiation has resulted in a highly fragmented market.

The key market participants include Foton, Jiangling Motors Corporation (JMC), Jianghuai Automobile Company (JAC), Dongfeng, and Jinbei. Alongside, market concentration is expected to continue to be low due to high competitiveness and rivalry. This will lead to a revolution of preferences of buyers, fleets, and automakers.

Revolution in Preferences The adoption of longhaul delivery heavy-duty trucks and last-mile delivery light-duty trucks is on the rise. Long-haul delivery trucks offer express delivery services through main connection roads across large-andmedium sized cities. In contrast, last-mile delivery trucks are in charge of final delivery of services through connection roads of residential and rural areas. Besides, both 6X4 tractors and 4X2 trucks are growing very fast in China year-on-year. A 4X2 truck is the leading type that contributed close to half of the market share on total miles used on China’s expressways.

Furthermore, there is a significant growth in crossborder road transportation.

Logistics service providers will gradually expand their business coverage, from intercity to rural areas and across national borders such as those

with Russia, Vietnam, and Laos. Delivery service period will be shortened due to completion and enlargement of new expressways.

Larger road expansion is resulting in new logistics dynamics. Third-party logistics (construction and intermodal transit carriers), manufacturing and retail supply chain, and agricultural delivery fleets are likely to face weak tendency from 50.6 percent of combined market share in the logistics industry in 2014 to 49.1 percent by 2022.

However, the market share of primary resource-based, e-commerce, rural delivery, and recycle material carriers is expected to grow from 47.8 percent in 2014 to 49.5 percent by 2022. Rapid growth of the e-commerce industry has led to a developed wellorganized delivery network, which includes factory-tobusiness (F2B), businessto-business (B2B), business-to-consumer (B2C) and customer-to-

PERSPECTIVE customer (C2C) platforms.

Meanwhile, rising environmental awareness leads to an increase in logistics demand due to the recycling industry’s need.

OEMs are moving away from the traditional frugal engineering strategy to component rationalisation strategy.

Leading domestic OEMs are able to supply their own key components production facilities, and exhibit high level of vertical integration. Frost & Sullivan finds that joint-venture activities will be a key force in reshaping commercial truck landscape and competitiveness in China as they are integrating high-value advanced technology and design improvements, such as braking, clutch, transmission, and safety systems.

As purchasing power goes up, end-users, fleets and leasing enterprises in China are increasingly demanding commercial trucks incorporated with sophisticated features.

This indicates an increase in purchase of alternatives from low-cost to high-value commercial trucks in the near to long-term. Hence, dealers are targeting a premium revenue growth on safety and convenience enhancement. The need for value-added solutions 46 | AutoPartsAsia | NOVEMBER 2015

will be positioned on vehicle service and maintenance, financing, insurance, and telematicsbased fleet management, instead of traditional new truck sales.

The next would be the truck value-chain segment, which will gradually transform. Fleets will increasingly demand higher individual comfort.

They are more likely to seek value-added services on extended warranty, contract hire, number plate, licensing, and cross-border support services. Hence, profit margin will decrease, due to the high degree competitive substitute and new entrant rivalry in the Chinese commercial truck market.

Besides general diesel powertrain solutions, natural gas is a leading alternative fuel solution in China. It is at an early maturity phase with the rising market demand for liquefied natural gas

(LNG) trucks. Nevertheless, medium-high natural gas retro-fit installations are growing in the aftermarket in China. By meeting the Natural Gas Utilisation Policy and emission standard regulation in China, the natural gas segment will continue to grow rapidly, especially in Tier-I cities.

On the other hand, the adoption of hybrid and electric powertrains is restrained by nascent technology and low customer preference in China. But adoption of electric powertrain commercial truck technology is expected to grow from 2022 onward with the completion of several road infrastructure projects.

Maturity Stage The overall Chinese commercial truck market is targeted to enter into an early maturity stage by 2022. This market is likely

to be developed from the basic original equipment sales and financing model to a higher market concentration, advanced technology integration, and progressive logistics solutions entity.

Key domestic OEMs will continue their domination in the Chinese commercial truck market by integrating advanced joint-venture partnership technology, as well as further expanding production capacity. Greater market fragmentation is expected in the Chinese commercial truck market, buoyed by demand expansion and opportunities for growth on the back of superior technology for foreign OEMs, especially in heavyduty and light-duty truck segments.

(The author is Research Analyst, Automotive and Transportation Practice, Frost & Sullivan. Views expressed are personal.)

FOCUS

Tiny Rajkot Makes It Big In Auto Parts Production

By Sharad Matade

T

he Gujarat city of Rajkot, though little known, is a major player in automotive components manufacturing.

There are over 1,200 micro, mini, small and medium units in auto parts business supplying to national and international OEMs. Rajkot is a hub of accurate turning, fine boring, facing and grinding operations. Products manufactured in Rajkot are supplied to automotive, defence and airline industries. It is only next to Coimbatore for forging and casting of auto components.

Many automotive giants like, Tata Motors, Ashok Leyland, Mahindra & Mahindra, Ford India, and Hyundai Motors India, buy auto parts from Rajkot.

“There are many companies in Rajkot which supply auto parts to renowned brands directly and indirectly in domestic market and international markets ”, Gokul Sagpariya, President of the Rajkot Engineering Association (REA) said. “The auto component units in the city offer speciality work for grinding, facing, turning, casting and forging for small volumes jobs to large orders and that helps our customers save money and time,” he said.

REA is the connecting link for the REA members “with the government authorities, international agencies and OEMs,” he said. However, the association does not have any data about the financial details of its members. “We tried to collected data on production, exports and revenues from our members, but could not succeed”, Sagpariya said.

Rajkot enjoys many advantages. “We are close to the state capital, Gandhinagar, and to the financial capital, Ahmedabad. Besides, the industry-friendly policies of the Gujarat Government, the city has all the infrastructure like electricity, ports, roads and connectivity to major cities of the neighbouring States.

Almost half of the auto component makers in

Rajkot prefer to be Tier-2 suppliers. “Here in Rajkot, the auto component makers get drawings and other specifications from their customers, either OEMs or Tier I supplier, and then they make products accordingly,” Sagpariya said.

When asked, whether this approach restricted innovations and branding of the companies in Rajkot, the REA president said that there was very little scope for innovations as “we make only customer- specified products and most of the units in Rajkot are Tier-2I players. Most of the OEMs and even Tier-1 players do not want auto parts to be branded with secondary suppliers”.

REA is promoting the Rajkot auto component manufacturers in international markets also. “We had organised an exhibition in Rajkot last year for the first time. I have also taken some delegates from Rajkot to Germany, Vietnam, China and Morocco,” Sagpariya said. Some of the members of REA participated in the Korea Autoparts & Accessories Show (KOAA Show) during October 20-22, 2015.

Since most of the auto component units in the city are micro and small, automation and IT adoption are not seriously considered. But most of our members now have CNC machines which help to achieve product accuracy. However, we are lacking in skilled manpower to operate CNC machines. To overcome this problem we are getting associated with many institutes and run course to sharpen the skills of workers. Under various programmes, we give theoretical lessons and practical training, Sagpariya said.

Auto component makers here are also getting serious on sustainability. Recently 15 members of the association conducted audit for energy saving. “We have had three projects for solar energy and three projects for carbon credit. We are also working on lean manufacturing for our members in Rajkot,” he said.

However, according to the president of REA, the Make in India initiative has not made much impact on the auto companies in Rajkot. “We have not seen much impact of the initiative yet. Until the machinery being imported are manufactured in India, along with the latest, technology and infrastructure, we cannot say Make in India has achieved its target,” Sagpariya said.

AutoPartsAsia | NOVEMBER 2015 | 47

EVENTS

EMO Milano Rings In Positivity For World Machine Tool Industry

By T Murrali

A

fter six years, EMO Milano 2015, the worldwide exhibition of machine tools, was held at fieramilano, Milan, in Italy, from October 5 to 10, 2015. Promoted by the European Association for Machine Tool Industries (CECIMO), the six-day trade show had more than 1,600 participants from across the globe, showcasing products offering manufacturing solutions to a host of industries, including automotive, aerospace and energy, in 12 halls spread over 120,000 square meters of net exhibition space. The previous exhibition in 2009 occupied 95,000 sqm.

The exhibition registered a 12 percent growth in the number of exhibiting companies and a 26 percent increase in the total net

48 | AutoPartsAsia | NOVEMBER 2015

exhibition area in comparison with the previous edition. The Italian Ministry of Economic Development had included it among the exhibition events considered as real instruments of industrial policy in the country, Pier Luigi Streparava, Commissioner-General of EMO Milano 2015, said.

machine tool builders at the show. With 504 exhibitors, the Italian enterprises made the largest delegation among the 42 groups of national representatives that took part in EMO Milano 2015.

This reiterated the favourable economic situation and the consumption recovery in Italy.

“This is a recognition which allowed the development and carrying out of initiatives aimed at promoting EMO everywhere in the world, thus increasing its visibility and the services available to exhibitors and visitors�, the CommissionerGeneral said

The inaugural ceremony was led by Pier Luigi Streparava, in the presence of Enrico Zanetti, Undersecretary of the Ministry of Economy and Finance, Roberto Maroni, President of the Lombardy Region, Giorgio Squinzi, President of CONFINDUSTRIA, Jean-Camille Uring, President of CECIMO, Corrado Peraboni, Managing Director of Fiera Milano and Luigi Galdabini, President of UCIMU-SISTEMI PER PRODURRE.

According to industry estimates, one in every two machine tool sold in the world is manufactured in Europe and this is evident from the large contingent of European

At the inauguration, the representatives of the organisers were unanimous in stating that the show helped in developing and offering innovative solutions

Development, organised numerous events and activities including seminars and discussions. Special delegations of end- users, journalists and teachers

One of the important seminars was on `Additive Manufacturing and ROBOFOOD 2015’ Robotics in the food industry.

In addition, there were special events, such as the Ceremony for the UCIMU AWARDS, and the Show “Machine Tool Scale Models”, dedicated to metal crafts, which re-evoked the genius and handicraft skills of Italians which also generated the machine tool manufacturing industry.

Stabilise Recovery

as the buyers could meet the sellers directly and convey their specific needs and the sellers could understand the quality requirements of their customers.

of major foreign technical institutes were invited to the exhibition. In addition to the official delegations, there were also autonomous delegations.

Luigi Galdabini, President of UCIMU-SISTEMI PER PRODURRE, highlighted the necessity of implementing concrete measures to stabilise the recovery of the consumption of production systems in Italy in particular and Europe in general, which started in 2014, and was now strengthening.

“From this year on, the world consumption of machine tools will start to grow again steadily (+2.3 percent). It will increase

CECIMO, the owner of the EMO brand and promoter of EMO Milano 2015, had entrusted the organisation of the event to the Italian Machine Tools, Robots, Automation Systems and Auxiliary Technologies Manufacturers’ Association (UCIMU-SISTEMI PER PRODURRE). The organization of the 2021 and 2027 editions also are entrusted to this Association.

“This entrustment is an acknowledgement of the value and importance of the Italian sector industry on the international stage, where it ranks third worldwide among exporting countries and fourth in the ranking of manufacturers”, Luigi Streparava, said.

Special Events At the EMO Milano 2015, UCIMU-SISTEMI PER PRODURRE, in cooperation with ICE-Agenzia and the Ministry of Economic

Globally, about 400 operators were involved.

The trade show facilitated concurrent events to discuss several issues of great interest to the global machine tools manufacturing industry, robots and automation systems.

They also encouraged the development of new ideas and the opening of new scenarios.

4.2 percent in 2016 and 4.5 percent in 2017. According to the figures processed by the econometric institute Oxford Economics, it is likely to achieve € 64 billion by 2017.

Italian consumption is expected to register an even stronger growth of 5.3 percent in 2015, five percent in 2016 and 7.4 percent in 2017”, he said.

AutoPartsAsia | NOVEMBER 2015 | 49

EVENTS “In particular considering the long standstill of consumption in Italy and also in a large part of Europe, the machine tool manufacturers ask for a provision - at a national and

to keep on playing a relevant role worldwide, guaranteeing its population development and well-being through innovation and education, activities to which UCIMU-SISTEMI PER

Expo, a part of Palazzo Italia into a hub for the permanent education and training of operators belonging to the sector and coming from every part of the world. It would be equipped with machine tools, robots and technologies, all made in Italy,and would allow the professional update and training of operators working on state-of-the-art production systems..

Collage Of Products EMO Milano 2015 had over 6,600 machines on display.

The exhibition halls hosted the biggest factory in the world, where machine tools, robots, automation, additive manufacturing, mechatronic solutions and auxiliary technologies were exhibited.

Some of the major players displayed their prowess in their very vast stalls, each of them as big as the quarter of a football court.

later on at a EU level - that may foster the replacement of obsolete machinery, enabling a modernisation of the machinery stock in the factories, while meeting the requirements of compliance with stricter regulations in terms of energy saving and improvement of safety standards at the workplace”, Luigi Galdabini said.

“As a matter of fact, this provision could encourage the modernisation of plants, which is now indispensable, as they affect the level of competitiveness of a large part of the manufacturing chain in our country and in Europe.

In other words, our proposal is, first of all, an instrument to guarantee our country and Europe a future of clean and efficient industry that may operate respecting the environment and at the same time may reward those who invest. Our intention, as Italians and leaders in the sector, is to act in a way as to allow Europe 50 | AutoPartsAsia | NOVEMBER 2015

PRODURRE always give special attention”, he said.

Luigi Galdabini said that to support and spread the know-how of technology and innovation related to the madein-Italy of the sector, UCIMU has proposed to convert, in the next months, after the end of

To facilitate the visitors the halls had been organised by product category. In this framework, additives technologies made their debut - a sector in full development and for this reason still to be studied in-depth. The Additive Manufacturing Focus was a space dedicated to these technologies, organised by the Italian Association of Additives Technologies (AITA), in

EVENTS

India’s Potential In an exclusive interview to AutoParts Asia at the fair grounds of EMO Milano, Carlo Calenda, Vice-Minister, Economic Development, Italy, described India’s growth and market potential as huge. The following are the edited excerpts.

Q: You mentioned that India is one among the priority countries for Italy, can you elaborate?

Calenda: As far as the emerging markets are concerned, I do think that for Italy, India is a very promising and interesting one especially for the manufacturing sector. We need to speed up our activities, as in my opinion, in the context of the emerging markets, next year will be the year of India.

For Brazil we find that it is very difficult to get into the market; so it is very important that India opens up for investment so that it will also contribute to developing your own industry.

Q: But a lot of investments have come into India especially in the automobile sector.

Calenda: Investments, yes. But it is

the trade that is the problem. If we want to sell machinery or goods to India there are many levels of tariffs that we need to sign up. The FTA in negotiation with India is lagging behind; we are not making any progress on this.

Q: Other than FTAs, do you find other opportunities that you look at from India and vice-versa?

Calenda: What we can offer to India is a fantastic place to invest, especially if the new Indian wave of development focuses on manufacturing. This is a chance for your entrepreneurs to come and invest in Italian companies and get the knowhow to progress in your industry sector. Considering the size of India you cannot have real development by only focusing on the services sector. Industries, construction and manufacturing are crucial, for which we do have

cooperation with ICE-Agenzia and the Ministry of Economic Development.

Smart Factory Walter AG, which is continuing to progress towards a digital

the knowhow. There is fantastic potential for a win-win relationship between us. Ten years ago I worked for an industry association and the country that I visited most was India. I was there every two months and we did a lot of things. I think the potential is still huge and though the growth in overall export from us in the first six months was 14 percent plus, now we are absolutely behind potential.

Q: What do you think India can offer?

Calenda: India can offer capital, market, partnerships in some sectors, like textiles etc. The capital would be in terms of industrial growth rather than financial. If I have investors coming from India who would like to invest in a company here, they can also develop that company in India.

This would be the perfect match.

and networked factory or Smart Factory, presented a component of this, the Walter Tool•ID Solution. Being tested by a customer for the first time, it would save the user time and improve process reliability.

This solution would allow the user to transfer tool data from the pre-setting device to the machine and to evaluate the parameters on the machine.

The data would be assigned to the tool through an identifier on the tool.

“In future, the user will be able to view, combine and evaluate data at the touch of a button – even using apps on a smartphone or tablet,” Holger Langhans, Director of Walter Multiply, said.

Tornos It was at the Hannover Fair 2014, that the topic of the 4th industrial revolution, ‘Industry 4.0,’ the intelligent factory concept, was first discussed. And even if the machine builders in general remain reluctant to accept this concept, the Tornos engineers have already discovered this field and this 52 | AutoPartsAsia | NOVEMBER 2015

Media Partners

EVENTS

Faster Deliveries In an exclusive interview to AutoParts Asia at the fair grounds of EMO Milano, Pier Luigi Streparava, Commissioner General EMO Milano 2015, said faster deliveries were very important for the growth of the machine tools industry. Edited excerpts:

Q: What are the key drivers for the growth of the machine tool industry in Italy?

Streparava: The increasing production and sales of machine tools in Europe is a good trend.

Of course we are very close to the trend in the automotive production which is the main issue all over the world. Our customer base is about 50-60 percent in automotive and the next big one is energy.

Q: Is there any initiative from machine tool manufacturers to become more environmentfriendly?

Streparava: Italian machine tool builders have what is called a ‘blue philosophy’ where we are taking care to become more and more green.

Q: Any particular aspect you would focus on?

Streparava: Conserving energy, reduce use of oil and lubricants and reduce waste. These three issues are addressed. We have a special programme in our association where our members look carefully at the available data.

Q: The machine tool industry is very peculiar because of the gestation periods – how do you manage them during and after recession?

Streparava: It’s because of the delivery time. When the crisis starts we are already delivering machines for which we have got orders earlier.

When the recession hits, we are the first to get affected and the last to

recover because we have to wait to deliver orders received during recession. It is a cycle and we have to manage.

Q: How do you plan when there is excess capacity?

Streparava: It depends on the kind of machines and the type of markets; so it’s difficult to have a common thread for action. It has to be taken on a case-to-case basis.

Q: Largely, the transportation industry goes through a cyclical trend. Will that impact the machine tool industry?

Streparava: More-or-less we follow the same trends.

Q: Coming to EMO Milano 2015, is there any uniqueness to this edition; any special emphasis given to some segments?

Streparava: The automation, but is not really new. What is new is the section that we have dedicated to additive manufacturing - that is 3-D production, which is the evolution of the rapid prototype. It is the first time this is being done in the EMO. Q: Digital factory has been talked about in a big way; globally lots of things are going digital. How prepared is the Italian Machine Tool Manufacturing Association?

Streparava: In my opinion industry 4.0 (fourth industrial revolution) is not something big. It is development of all domain knowledge and technology. I don’t think there is any final goal or target regarding this.

This is something we have to reach to get our factory updated.

was demonstrated with TISIS 2.0 unveiled at the EMO Milano 2015. Of the several features, the tool set-up, for instance, is possible by using a plug and play camera that can be easily installed in the machining area.

54 | AutoPartsAsia | NOVEMBER 2015

Q: In this 4.0 you also have a new set of suppliers. Traditionally, for machine tools you will have suppliers in pneumatics, hydraulics and other things. Now, there are new sets of suppliers like Google and Apple who are coming in. How do you see this?

Streparava: We are waiting to see what they can offer. People are talking about it but nothing concrete has come so far.

Q: The same thing is happening in the auto industry. New companies are coming in and trying to amalgamate with the existing system to enhance overall productivity…

Streparava: Take a look at the electric car; for 20 years we have been talking about it and only off late, models are available commercially. However, there is a long way to go to reach the goal.

Q: What are the short-term and long-term plans of your organisation?

Streparava: The delivery of machines in Italy currently is between five to six months. If you take eight months to deliver then your competitor steps in. This has to improve; faster deliveries are required.

Q: What is your solution to produce faster?

Streparava: Our members will go in for automation, new technology and lean production. These three are important issues that our members are looking at.

The video streaming function of the TISIS application provides a view into the heart of the machining area. This camera can also be used for measuring.

This option is available with the Connectivity Pack.

Mitsubishi Mitsubishi Electric offered a wide range of services and solutions that help productivity increase, operational efficiency, energy management, life cycle

engineering, security, service and training. Also on show were programmable logic controllers (PLCs), human machine interfaces (HMIs), inverter, servo/motion controller, servo motors, industrial robots, switchgear, and automation project development, building and commissioning software.

Heller Under the motto ‘Lifetime Productivity,’ Heller showcased a range of machines including 4-axis machining centre model H 4500, 5-axis mill/ turning centre model CP 4000 and 5-axis machining centre model FP 4000 in combination with a flexible pallet container type FPC 1000 by Fastems.

The company attempted to seize EMO in Milan as an opportunity to demonstrate visitors the advantages of its complete solutions, comprising state-of-the-art machine tools and manufacturing systems, tailor-made applications and a comprehensive range of service solutions.

Cafro The Italian company Cafro, founded by Giovanni Mancina

in 1955, is a market leader in the field of diamond and CBN tools for precision mechanics.

Cafro is the name of a South African tribe, in whose territories the first diamond fields were discovered. Sixty years later, the third generation of the Mancina family is now carrying on a heritage made of total dedication and technological knowledge.

At EMO Milano 2015, Cafro introduced its new logo, new website, presence on social media and a brand new packaging underlining product

personalisation, one of Cafro’s strengths. For Cafro 2015 is the year in which the most recent developments have become the starting point for new challenges.

D’Andrea S.p.A. The PSC machine coupling, already available as a part of the wide-ranging programme offered by D’Andrea S.p.A., is being enlarged. The new product range includes both brand new monolithic tool holders with PSC couplings and new positions for the modular system (couplings, extensions

AutoPartsAsia | NOVEMBER 2015 | 55

EVENTS

Made In India Makes Waves In Milan The EMO Milano 2015 has established the fact that India is set to become a significant player in the global machine tools industry and is likely to see substantial high-end machine tool manufacturing. The Indian contingent at the exhibition comprised of 15 companies that displayed both entry- level and high- end machines, turning centres, grinding machines, cutting tools and a host of machine tool accessories.

In machine tool manufacturing, while the organized players cater to India’s heavy and medium industries, the small and medium enterprises (SMEs) meet the demand of ancillary and other units.

They are open to opportunities for investment as a cost-effective manufacturing base. Most Indian machine tool companies are ISO

certified and many products are CE marked, in keeping with the requirements of the European markets.

CNC machine tools comprised about 80 percent of the machine tools produced in 2014-15.

The industry is moving towards sophisticated CNC machines offering total manufacturing solutions, driven by demand from key user segments such as automobiles & auto components, die & mould, aerospace, defence, medical equipment, and many more. Machine tool manufacturers are developing capabilities to cater to this demand, and investments in this area will yield long-term benefits.

Indian companies grew at a rapid pace over the last decade and

and reductions). This stretching operation includes: modular tapers, reductions, extension cords, milling spindles and adaptors – all equipped with PSC connection – that will allow the utmost flexibility of use both for those users who already own machine tools and PSC couplings.

Wolf Maschinenbau Wolf Maschinenbau AG, a specialist in the field of designing and manufacturing rotary and linear cycle machines, presented its competency in the field of process technology. Its range of offerings included a new machine design and a new multitouch panel generation.

Visitors could experience a machine in a complete new design.

Integrated Manufacturing In addition to introducing a number of new high performance cutting tools at EMO show, M.A. Ford 56 | AutoPartsAsia | NOVEMBER 2015

marked their presence across all the broad product categories of machine tools. Many of them are already exporting to countries such as Germany, Turkey, China, Middle East nations, USA, etc.

The advent of joint ventures, mergers and acquisitions led to Indian machine tool manufacturers making their presence on a global scale. There is high optimism that India would emerge as an important sourcing and manufacturing base for the machine tool segment.

Leading Indian machine tool companies have in recent years acquired foreign companies and entered into strategic tie-ups to expand their product range and markets. This was in keeping with the industry’s vision to become a significant global player.

Europe demonstrated a range of machining process improvement technologies as part of its integrated manufacturing solutions (IMS) drive, to help improve customer productivity and reduce manufacturing costs.

IMS combines the high performance solid carbide tooling and Rego-Fix non-pull out tool holders with specialised high speed machining tool path software and BlueSwarf Dashboards anti-vibration analysis to optimise the machining process for virtually any component.

Henkel Henkel’s introduction of Bonderite duaLCys at the show extended its Bonderite portfolio of products that help facilitate cleaner and more efficient and sustainable machining.

Bonderite is the company’s premium brand for surface technology and process solutions.

Bonderite duaLCys process

exploits lubricant-cleaner synergies to reduce costs, boost performance, save energy, lower waste generation, and improve working conditions.

Third Wave Systems Third Wave Systems announced that it would integrate its Production Module technology with Siemens’ NXTM software to help optimise machining processes. This means that Third Wave Systems can now offer its current and future customers, an interface to the same technology that companies around the world depend on every day, to enhance product development decision- making and produce better products.

Production Module is processoptimisation technology that empowers users to better understand machining processes, make informed decisions about tooling and tool path strategies and identify potential areas for improvement.

Em

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EVENTS

Ahmedabad Expo Boosts Machine Tool Industry In Western Region

By Sharad Matade

T

he State of Gujarat, with very dynamic, innovative and highly professional entrepreneurs, is India’s model for industrial development.

Gujarat contributes 16 percent of the industrial production of India and has also mobilised the highest share (12.7 percent) of investments in the country.

Ahmedabad, the administrative capital and the economic base of Gujarat, is one of the fastest growing cities in the country. It has various industries like textile, garments, gems and jewellery, automotive, chemicals and petrochemicals and information technology.

It was in such a background that the Indian Machine Tool Manufacturers’ Association (IMTMA) organized the first `Ahmedabad Machine Tool Expo’ at Mahatma Mandir, Gandhinagar, during September 24-27, 2015, targeting mainly the industries in the western region. The business to business (b2b) exhibition showcased metal cutting and metal forming machine tools, machines for welding, for thermal and surface treatments, robots, automation hardware and software, assembling, tools, parts, components, accessories, metrology, quality control, systems, material handling and consumables, software and consultancy.

Elaborating on the importance of the show from a regional perspective, IMTMA President L. Krishnan said, 58 | AutoPartsAsia | NOVEMBER 2015

“The show gave an opportunity for visitors to meet the small and medium enterprises who are the original equipment manufacturers and their sub-suppliers. The expo opened avenues to penetrate niche industry sectors as well as the untapped regional market.”

Concurring with the IMTMA President’s opinion, V Anbu, Director General, IMTMA, said, “There is a sizeable demand emerging in western India as a result of the growth in the manufacturing industry.

The current expo has shaped up to be an ideal platform to initiate business in the region.”

The first edition of the Ahmedabad Machine Tool Expo has been a runaway success. The presence of over 9000 visitors from the region made it a truly grand event. The expectations would grow higher from all sides since the responses have been positive. “IMTMA will organize many more regional shows and, with the support of the industry, hopes to build on the success achieved in Ahmedabad, President Krishnan said.

Manufacturing Solutions The expo displayed state-of-the-art technologies primarily focusing on manufacturing solutions from the industries located in the western region. Fervent business activities transpired at the expo. Trade leads were generated amidst a lot of learning and information sharing

in a business environment and thus culminating into a heightened euphoria for the industry.

The show had the presence of industry delegations representing various sectors such as textile machinery, pharmaceutical machinery, petrochemical engineering, agriculture implements, auto engineering, mining equipments, and many more.

The visitors to the exhibition included engineers, technocrats, plant executives and managers, production- in- charge, business professionals, R&D professionals, engineering students, faculty members, dealers, manufacturers, vendors, machinery manufacturers, plant operators, project managers, product designers, corporate executives, warehouse managers and distributors.

Exhibitors were enthralled by the responses from the visitors. Many of them felt that participating in such a show was vital not just for sales but also for services. The show enabled them to meet the different regional customers and better understand the requirements of the regional markets.

The understanding generated at the show will serve as the basis for solid industrial development in India and simultaneously strengthen the companies’ business while expanding their network to a larger scale.

Visitors spoke in glowing terms about the first edition of the expo.

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EVENTS APA Bureau

T

he thirteenth Automotive Testing Expo North America 2015, during October 20-22, 2015, at Suburban Collection Showcase Exhibition Halls, Novi, Detroit, had companies and experts from all fields of vehicle test and development and presented and shared the latest products, insights and knowledge in important industry topics. Simultaneously, the Doors to Engine Expo 2015 also opened to

New Automotive Testing, Engine Technologies On Show In Detroit hundreds of visitors from all fields of engine test, development and research.

The very latest technologies and services designed to ensure that the highest standards are met in terms of product quality, reliability, durability and safety, were exhibited, ultimately aiming at eliminating recalls. David Hunt, sales manager of Automotive Testing Expo North America, said “the show has been a huge success; we’ve had great feedback from both visitors and exhibitors”. The Open Technology Forum had expert presentations on key topics such as emissions testing, protecting, Ethernet-based in-vehicle networks and the latest in data capture. The Crash Test Zones was very popular with visitors seeking the latest in safety technology.

Sales director of the Engine Expo, Tim Sandford said, “I’ve had great feedback from exhibitors. They’re all very happy with their experience and I have seen business exchanges between several of them. It’s great to see so many professionals from one field all in one place at the same time.”

Expert speakers at the engine area included CJ Kalebjian, Chief Engineer and Programme Manager, Achates Power Inc, USA, who discussed about the new emissions targets, and Das Ajee Kamath, Chairman and Manging Director, GYATK RVCR Apparatus Private Limited, India.

60 | AutoPartsAsia | NOVEMBER 2015

He talked about rotary variable compression ratio technology-based IC engines.

Testing Technologies Visitors to Automotive Testing Expo North America had the opportunity to learn more about the new advanced technology platform developed by HBM. This system is designed to improve the performance of engine tests within the automotive industry.

ATT displayed new embedded all-in-one software package, called MyKratos. The system enables ATT’s new T & RH Discovery My test chambers to be managed and monitored from any place at any time, with mobile or desktop devices, using wi-fi, Ethernet or GPRS/UTMS. Adaptive Power Systems showcased a range of powerful and fully programmable electronic DC loads.

These fully featured loads target the development and testing of battery solutions for advanced electric drivetrains. The new 5VP Series of loads incorporate many of the test capabilities found in modern electronic loads.

Engine Exhibits At the Engine Expo North America, Rane presented two product lines, engine valves and aluminium die castings. The company displayed its range of hollow and sodium-cooled engine valves, which would enable designers to push the limits of engine

performance to meet even the most stringent fuel efficiency and future emissions norms. Surface treatment option innovations were also on show.

Plasmatreat highlighted its Openair, PlasmaPlus and fine powder coating (FPC) plasma surface pretreatment systems, which are used across applications in automotive manufacturing, incorporating significant progress for automotive engine, differentials and transmission production solutions.

Ultraseal displayed its latest innovation to solve the problem of porosity – microscopic holes in cast metal parts. Its revolutionary new R-FL-Duplex Plus machine is set to transform casting impregnation with its small factory footprint, increased throughput and revolutionary twostage process.

Phillips Screw exhibited its external MORTORQ Super Spiral Drive System for maximum torque in a lightweight, low-height design.

The pioneering system minimises the clearance required between components while optimizing maintainability and recyclability for a green solution Tantec presented its new PlasmaTEC-X Atmospheric Plasma treatment system, which is built around the concept of a high-voltage DC plasma discharge in atmospheric air.

PREVIEW

Automechanika Shanghai 2015 To Exhibit Latest In Auto Parts, Services APA Bureau from the acclaimed strength of the Automechanika Shanghai platform, the considerable crowd it attracts and the wonderful opportunities the exhibitors get”.

A

One of the Automechanika Shanghai exhibitors, Tenneco, is a leading manufacturer serving well-known OEMs and aftermarket distributors

utomechanika Shanghai, Asia’s largest trade fair for automotive parts, accessories, equipment and services, will be held at the National Exhibition and Convention Center, Puxi, Shanghai, during December 2-5, 2015.

The new venue of 280,000 sqm, which is an increase of 27 percent from the previous year, will house about 5,300 worldwide exhibitors, up eight percent from 2014. As China has become the manufacturing epicentre of an extremely fast growing automotive market, more companies worldwide are expected to explore the automotive sectors and the possibilities available to them. New products and services will also be launched during this year’s show.

Leading Sectors Several new brand names are expected to present the latest technologies in the major automotive sectors like Parts and Components, Repair and Maintenance, and Accessories and Tuning.

Among the many new attendees this year, Bilstein, an innovative shockabsorber specialist in Germany, will showcase the entire range of shock-absorber systems in the show.

Michael Hsieh, Managing Director, ThyssenKrupp Bilstein GmbH, said, “Networking and establishing strong marketing opportunities with various industry players is of utmost importance for us. Therefore, we’re participating for the first time to gain

the Repair and Maintenance sector, looking to capitalise on this shift in consumer spending, will take part in the exhibition. More leading brands will be incorporated from local Repair and Maintenance hubs, including Guangdong, Hebei, Liaoning, Shandong and Yangtze River Delta in China. Several companies within this sector will be returning to the fair this year.

Since 2011, the Accessories and Tuning sector of Automechanika Shanghai has had huge success, increasing by almost 500 percent. The high demand for car care and tuning-related products within China’s automotive aftermarket has proven the strength of not only this sector, but of the Automechanika Shanghai show itself. To build on the ample success of the market, the Accessories & Tuning Key Brand Hall has been further

and retailers worldwide. Brian Lee, China Aftermarket General Manager, Tenneco, said, “In an effort to build our brands, Monroe and Walker, and make our name more visible, we’ve joined Automechanika Shanghai, which is well developed and highly recognised within the industry”.

The Parts and Components hall will have additional new exhibitors including: Aisin Seiki, Bilstein, Denso, DuPont, Magneti Marelli, NGK and Sofima. The companies returning this year include: AE, BAAM, Bosch, Brembo, Chery, CCAG, CNIGC, Continental Automotive, ContiTech, Cummins, Dana, Delphi, Fawer, Federal Mogul, Hella, Mahle, Mann+Hummel, NTN-SNR, Osram, SAIC, Schaeffler, Sumec, TRW, Valeo, VIE, Wanxiang, Weichai and ZF. Improved economic conditions among the Chinese consumers have shifted the buying power towards more upscale vehicles and products.

Over 700 worldwide exhibitors from

amplified to attract and gather big companies from this sector.

Messe Frankfurt, the organisers of Automechanika Shanghai, is one of the world’s leading trade fair organisers, generating around €554 million in sales and employing 2,130 people. The Messe Frankfurt Group has a global network of 29 subsidiaries and 57 international sales partners, allowing it to serve its customers on locations in more than 160 countries. Messe Frankfurt events take place at more than 30 locations around the globe.

AutoPartsAsia | NOVEMBER 2015 | 61

PREVIEW

GenNext Automotives To Dominate Pune AUTO’15 Expo APA Bureau some of the best-designed vehicles by the engineering college students who were part of the international and national vehicle design competitions like Baja / Supra / Efficycle / Gokart etc. With the growing importance of the role of students in the developmental activities, the Pavilion assumes great significance. Display of vehicles in this pavilion has been increasing with each Expo.

T

he 15th edition of the Indian Automotive Trade Fair in Pune- – AUTO’15 EXPO– western India’s largest automotive exhibition, is scheduled for December 24-27, 2015 at Golibar Maidan Ground. The theme of the event is ‘Next Generation Automobiles’ with a special focus on Mechatronics.

The student pavilion will display 62 | AutoPartsAsia | NOVEMBER 2015

Pune is referred to as the Automotive Capital City as it houses some of the prominent automotive companies of India including, Tata Motors Limited, Bajaj Auto Limited, Force Motors Limited, Mahindra Two-Wheelers, Mercedes Benz India and others.

Several multinationals have found the

The Vintage & Classic Vehicles pavilion has been a crowd puller and entertainer at every event.

Several quality vehicles of the bygone era, well maintained by their present owners, will be on display at this pavilion.

Seminars, Conferences and Audio-Visual presentations will be held concurrent to AUTO’15 to disseminate information

On display at AUTO’15 Expo will be passenger cars, two-wheelers, auto components and spares, oil & lubricants, garage / service station equipment and tools, tyres & tubes, auto accessories, car security systems, auto finance and services, research & development and publications. There would be special focus on concept vehicles, designed or modified vehicles, vintage & classic vehicles, and electric & hybrid vehicles.

A separate Defence Pavilion would display some prominent vehicles and requirements of spare parts by the Indian Army. Pune is the headquarters of the Defence Ministry (Southern Command). Several establishments and organizations of the Indian Army are situated in and around the city. The good works of these organizations, particularly in the transportation sector by the 512 Army Base Workshop and The R & D Establishment Engineers, are brought to the people through the AUTO Expo. It is also used as an opportunity to attract vendors for supply to them.

Automotive Capital

region to be the epicentre of growth of automotive business.

on technological trends in the automotive industry. The conference will discuss about New automotive technologies, Automotive electronics, Environmental issues, Safety aspects, Developments in tyre & retreading industry etc. There will also an Industry – Institution interaction session, and meeting of the garage owners and mechanics of Western India.

AUTO’15 Expo is expected to be a meeting point for representatives of manufacturers, marketers, traders / dealers, service engineers, mechanics, garage owners, professionals and students.

AUTO series of exhibitions began in Pune in 1992. Started as a component and accessories fair, the event received excellent support from the Industry, trade and commerce, and automotive organisations and developed into a total automotive expo. The biennial event gradually became annual being held in December.

Conferences on Technology Day, Environment Day and Management Day have been the highlight of the exhibition.

The AUTO exhibitions received good backing from the government and non- governmental organizations in the region. Automotive Research Association of India (ARAI), Central Institute of Road Transport (CIRT), Vehicle Research & Development Establishment (VRDE), Research & Development Engineers (R & DE), Maharashtra State Road Transport Corporation (MSRTC), Pune Mahanaganar Parivahan Mahamandal (PMPML) and the Regional Transport Office (RTO) have been supporting and promoting the Expo.

PREVIEW

Paul Sabatini

All Roads Lead To NAIAS, Detroit

By T Murrali

A

s the automotive industry drives into the future, Detroit remains in the driver’s seat and North American International Auto Show (NAIAS) is the destination once again, where the nextgeneration products and technologies continue to make their world debuts. The NAIAS 2016 show will be held between January 9 and 24, 2016, at the Cobo Centre that was refurbished recently at a cost of $300 million.

The Chairman of NAIAS 2016, Paul Sabatini, told AutoParts Asia that the forthcoming edition will have close to 300 exhibitors with a prudent mix of OEMs, component manufacturers and affiliated companies. Featuring over 750 vehicles and a host of interactive displays, NAIAS is North America’s largest and most prestigious automotive showcase.

NAIAS is a five-in-one show offering special attention to all kinds of visitors. The ninth annual ultra-luxury automotive event, The Gallery, will be held on January 9. The event has become the official kick-off to NAIAS and once again, is hosted at the luxurious MGM Grand Detroit, where a strolling dinner will be served by worldrenowned celebrity chef in

the Ignite Lounge. “Guests will have the opportunity to stroll through the MGM Grand Ballroom and experience a nearly $7 million collection of the most amazing automobiles the world has to offer, including brands such as Aston Martin, Bentley, Ferrari, Lamborghini, Porsche and Rolls Royce.

In addition, executives and designers responsible for the creation of these products will be on hand to discuss the brands.”

Data Asset Management The Press Preview will be on January 11 and 12, for the media personnel to join automakers and Tier-1 suppliers. For the first time NIAIS will be introducing a Data Asset Management system for the media. “We’re excited to announce we’ve partnered with IBM to create an industryfirst Data Asset Management portal that will house content from our OEMs, suppliers and sponsor partners. Credentialed media members will be able to access content ranging from press releases to graphics to video all in one portal, avoiding the need for journalists to look up for such content on these companies’ respective websites or attend every press conference. In addition to all the content in our portal, there will

be a real-time social media and news aggregator, powered by Critical Mention. Users will be able to track global trends and create unique reports”, Sabatini said.

“NIAIS is looking at actively participating in the social media. The shows official hash-tag is ‘#NAIAS.’ “We have partnered with Twitter to expand NAIAS’ social reach.

Twitter will be setting up ‘social buzz boards’ around the show floor, concourse and in Michelin Media Center so that attendees can track and engage in realtime the news and excitement coming out of NAIAS”, he said.

The press days are followed by the two days of Industry Preview. It is aimed at connecting and sharing insights with over 35,000 automotive professionals and analysts, representing more than 2,000 companies from around the world.

One of the interesting aspects of the show is its fundraising event for charity. It has a dedicated day for this.

The Charity Preview is the opportunity to be part of one of the most exclusive, high profile events in the nation. Its proceeds will benefit a wide range of children’s charities that are making a positive impact in southeastern Michigan. Since 1976, the Charity Preview has raised more than $100 million, over $45 million in the last 10 years alone, Sabatini said.

The show is open for public from January 15, 2016 AutoPartsAsia | NOVEMBER 2015 | 63

PREVIEW

CII Rubber World Expo 2015 To Focus On New Industry Trends APA Bureau

I

n its Endeavour to empower the next generation of the rubber industry, the Confederation of Indian Industry (CII) is organising the Rubber World Expo 2015, from December 16 to 18, 2015 at the Bombay Exhibition Centre, Goregaon, Maharashtra. It is India’s most comprehensive event on rubber products, rubber machinery, chemicals and additives, automotive tyres and tubes, etc.

The Rubber World Expo is being held in partnership with the

leading stakeholders, including the Tripura State government, supported by Maharashtra. The Indian rubber industry has been growing in strength and importance, as a part of India’s increasing role in the global economy. The rubber Industry, across its various segments and verticals, has been occupying significant share 64 | AutoPartsAsia | NOVEMBER 2015

in the Indian industrial ecosystem. India’s foot print in the rubber segment has been predominant.

Countries including, Sri Lanka, China, Japan, Indonesia, Korea, Thailand, Malaysia, Vietnam, Singapore, Germany, the UK, the US, Italy, Australia, UAE, Saudi Arabia, Nigeria, Taiwan and Myanmar are expected to participate in this world exposition and conference on rubber and rubber industry.

Leading rubber and allied sector companies like CEAT, Bharaj Machineries, Klockner Desma Machineries, Colmec SpA, Euro Exim, Maxan Corporation, Nishigandha Polymers and many more will be present at the Rubber World Expo 2015 as they perceive it as an ideal platform to showcase their prowess.

The who’s who of the Industry shall be present in order to facilitate the best of the business opportunities, globally. The exposition is also set to witness the congregation of global experts and specialists to discuss the new trends in the various aspects of the rubber industry.

The China United Rubber Corporation

(CURC), organisers of RubberTech Shanghai and Germany, has announced RubberTech India in parallel with CII’s Rubber World Expo 2015. The Indian Rubber Manufacturers Research Association (IRMRA) will co-organise a two-day technical conference and a one-day workshop focussing on sustainable development of the rubber industry by presenting technical papers and through interactive sessions.

The event is being supported by the various Industry associations like Rubber Board of India, National Small Industries Corporation (NSIC), Society of Indian Automobile Manufacturers’ Association (SIAM), International Centre for Automotive Technology (ICAT), Indian Chemical Council (ICC), Indian Speciality Chemical Manufacturers’ Association (ISCMA), and Jullunder Rubber And Chemical Dealers Association.

Asia Strategy The Rubber World Expo 2015 is designed to interact and create significant business relationships with the key players in the global rubber industry.

This exposition will provide a common forum for international companies to

work together, and develop their `Asia Strategy’, where the growth rates for the rubber markets are expected to be higher than their international counterparts. Experts and specialists from Japan, China, Thailand, Malaysia, Korea, Germany, SriLanka, the UK, Australasia and the US will come together with those from India to discuss emerging market scenarios, technologies, alliances and various related subjects.

The rubber products on show will include, tyre, casings, tubes and valves, rubber Machinery and testing equipments, belts and hoses, footwear, reclaim and recycle rubber, auto parts, chemicals and additives, rubber coats and aprons.

The visitor profile will be a representation of the global rubber industry. They will be from the leading industries like, automotive and components manufacturers, packaging and plastic, electrical and electronics, the Railways, ports and other transport sectors, building and construction, Engineering and research institutions, tools and toys, IT and telecom, food and beverage equipment and machinery, and the footwear and garment machinery manufacturers.

GLEANINGS - International

American Honda Rewards

Best Suppliers

APA Bureau

A

merican Honda has rewarded15 of its best performing suppliers in 2015. They received the company’s `Premier Partner Award’ from Executive Vice President John Mendel in a special ceremony held recently in Torrance, California. This year’s recipients were selected from a pool of more than 1,000 eligible companies, based on excellence in quality, value and customer service.

tracking incentive payments, reconciliation and analytics through the Honda and Acura Sales Incentives Management Platform.

Targetbase, for marketing strategy and consultation, and the development and management of customer databases.

Aerotek, for providing a contingent workforce for Honda’s Automobile Customer Service Department.

Virginia Transportation Corporation, for providing finished vehicle transportation services in the US and Canada.

Altura Associates, for providing consulting and development services for the Honda Environmental Leadership, `Green Dealer’ Programme.

Atlantic Container Line AB, for providing international transporting services.

BI Worldwide, for the development and execution of customer and associate retention and engagement strategies.

Brando, for providing experiential marketing services for the motorcycle and UTV/ATV segments.

CH2M, for providing facility management and administrative services.

“We ask all Honda suppliers to join us in prioritising the end-customer above all,” Charles Harmon, American Honda’s senior manager of procurement and corporate services, said. “This year’s Premier Partner Award recipients have risen to that challenge and are critical members of the extended Honda family,” he said.

Hay Group, for creation and execution of leadership development centres for assistant managers and managers.

The Premier Partner Award recipients played a unique role in supporting Honda businesses and operations, including Honda and Acura automobiles, automobile engines and transmissions, Honda all-terrain vehicles, power equipment products, general purpose engines and the HondaJet advanced light jet. Seven of the 15 recipients were repeat winners.

Lithocraft Company, for providing printed accessory collateral for dealerships.

The Award Winners The following companies are the award winners:Accenture, for managing and

Impartial Services Group, a Stericycle business, for providing outreach campaigns to owners affected by recalls.

Small Businesses “Honda is committed to the establishment of long-term relationships with all of its suppliers based on mutual benefit and trust. We work to bring greater diversity to our supply base by assisting potential ethnic minority and women-owned suppliers with workshops and other educational opportunities. The workshops provide greater understanding of a variety of important issues including strategic alliances, capitalisation and empowerment programmes”, Harmon said.

Honda established operations in America in 1959 and now employs more than 40,000 associates in its North American manufacturing ,sales and R&D operations. Total capital investment in North America exceeded $22 billion.

Pattison Sign Group, for fabricating signs for the Honda and Acura Identification programs.

Based on its long-standing commitment to `build products close to the customer’, Honda began building power sports products in America in 1979. Now it has 16 major manufacturing facilities in North America. They produce a wide range of Honda and Acura automobiles, automobile engines and transmissions, Honda all-terrain vehicles, power equipment products like lawn mowers, mini-tillers and general purpose engines, and the HondaJet advanced light jet.

RPA, for operating and maintaining Honda’s consumer website and consumer communications, as well as providing support tools to external training companies, dealers and field personnel.

Honda also operates 14 major research and development centres in the US with the capacity to design, develop and engineer many of the products the company produces in North America.

Maritz, for creating in-dealership launch training programmes and direct mail marketing.

AutoPartsAsia | NOVEMBER 2015 | 65

GLEANINGS - International

Hands-free Technologies Can Lead To Unexpected Dangers: AAA Foundation APA Bureau

P

otentially unsafe mental distractions can persist for as long as 27 seconds after dialling, changing music or sending a text using voice commands, according to a surprising new research by the AAA Foundation for Traffic Safety, a nonprofit, charitable organization based in Washington, DC that is dedicated to saving lives through traffic safety research and education.

The results raise new and unexpected concerns regarding the use of phones and vehicle information systems while driving. This research represents the third phase of the Foundation’s comprehensive investigation into cognitive distraction, which shows that new hands-free technologies can mentally distract drivers even if their eyes are on the road and their hands are on the wheel.

“The lasting effects of mental distraction pose a hidden and pervasive danger that would likely come as a surprise to most drivers,” said Peter Kissinger, President and CEO of the AAA Foundation for Traffic Safety.

“The results indicate that motorists could miss stop signs, pedestrians and other vehicles while the mind is readjusting to the task of driving.”

At the 25 MPH speed limit in the study, drivers travelled the length of nearly three football fields during this time. When using the least distracting systems, drivers remained impaired for more than 15 seconds after completing a task.

“Drivers should use caution while using voice-activated systems, even at seemingly safe moments when there is a lull in traffic or the car is

66 | AutoPartsAsia | NOVEMBER 2015

stopped at an intersection,” said Marshall Doney, AAA’s President and CEO. “The reality is that mental distractions persist and can affect driver attention even after the light turns green.”

Residual Effects The researchers discovered the residual effects of mental distraction while comparing new hands-free technologies in ten 2015 vehicles and three types of smart phones.

The analysis found that all systems studied increased mental distraction

to potentially unsafe levels. The systems that performed best generally had fewer errors, required less time on task and were relatively easy to use.

The researchers rated mental distraction on a five-point scale.

Category one represents a mild level of distraction and category five represents the maximum. AAA considers a mental distraction rating of two and higher to be potentially dangerous while driving.

The best performing system was the Chevy Equinox with a cognitive distraction rating of 2.4, while the worst performing system was the Mazda 6 with a cognitive distraction rating of 4.6. Among phone systems, Google Now performed best with a

distraction rating of 3.0, while Apple Siri and Microsoft Cortana earned ratings of 3.4 and 3.8. Using the phones to send texts significantly increased the level of mental distraction. While sending voiceactivated texts, Google Now rated as a category 3.3 distraction, while Apple Siri and Microsoft Cortana rated as category 3.7 and category 4.1 distractions.

“The massive increase in voiceactivated technologies in cars and phones represents a growing safety

problem for drivers,” continued Doney. “We are concerned that these new systems may invite driver distraction, even as overwhelming scientific evidence concludes that hands-free is not risk free.”

Previous AAA Foundation research established that a category 1 mental distraction is about the same as listening to the radio or an audio book. A category 2 distraction is about the same as talking on the phone, while category 3 is equivalent to sending voice-activated texts on a perfect, error-free system. Category 4 is similar to updating social media while driving, while category 5 corresponds to a highly-challenging, scientific test designed to overload a driver’s attention.

GLEANINGS - International

M

cLaren had established itself throughout the 1960s and 70s as a world-beating force in one of the most extreme forms of motorsport, the Canadian American Challenge Cup series - the Can-Am. It remains a well-remembered form of racing due to its popularity at the

McLaren Celebrates 50 Years Of US Race Series With Limited Edition 650S CAN-AM time, the spectacular cars and the line-up of talented drivers.

The Can-Am series was a no-holdsbarred battle of power and speed around some of the most iconic circuits in the US and Canada. It attracted the best drivers of the time including Graham Hill, John Surtees, Jackie Stewart and Bruce McLaren.

The championship started in 1966, only a year after Bruce McLaren Motor Racing was established and in the series that followed, he became one of most successful names in the sport. The McLaren team had won five consecutive championships between 1967 and 1971.

The Can-Am series folded after the relatively lacklustre 1974 season owing to the energy crisis and the increased cost of competing in the series. Can-Am cars remain popular in historic racing.

In honour of the 50th anniversary of the 1966 inaugural season, McLaren Special Operations (MSO) of the UK-based McLaren Automotive, the manufacturer of luxury, highperformance sports cars, has created the limited production 650S Can-Am which takes its inspiration from the race cars of that golden age of motorsport. It is to be priced at £255,850 with deliveries set to commence from April 2016, 50 years on from the first race at Mont Tremblant, Canada. Just 50 examples will be produced globally, all based on the 650S Spider.

Key to the success of the McLaren Can-Am racers was the use of the latest technologies and materials.

This principle is carried through to today’s 650S Can-Am. To support

the development, engineering and manufacture of its range of innovative and highly acclaimed sports cars, McLaren Automotive has partnered with world leading companies including, AkzoNobel, ExxonMobil, Pirelli and SAP, to provide specialist expertise and technology.

Commenting on the 650S Can-Am, Paul Mackenzie, Executive Director of McLaren Special Operations said, “Can-Am racing is a major part of McLaren heritage, and this latest model from MSO pays homage to the cars and the racers who played a key role in making the championship such a spectacle during the 1960s and 70s. The 650S Can-Am is a modern day interpretation with a mixture of functional design features taken from the all-conquering models, combined with the lightest and most pioneering materials available, as was the case with the race cars. The extensive use of lightweight visual carbon fibre, including for the retractable hard top, adds to the car’s dramatic appearance. With the roof down, drivers are treated to a stirring V8 soundtrack just as Bruce and his teammates enjoyed”.

seconds and its top speed is 204 mph (329 km/h).

The 650S Can-Am is offered in three bold colours. The launch colour, Mars Red, is directly inspired by the M1B raced by Bruce McLaren and his teammate Chris Amon in the debut season. The second colour, Papaya Spark, is a modern and metallic take on the famous Can-Am racing McLaren Orange. The final option is Onyx Black which is similar to the base colour used by many of the McLaren customer teams in the later seasons. Each is additionally available with a corresponding racing livery to give an even closer visual association with the historic Can-Am series.

Inside, the standard sports seats are upholstered with leather and Alcantara which complement the exterior. Carbon fibre naturally features extensively throughout the cabin while a further bespoke CanAm touch is the unique dedication plaque on the driver’s door.

Like the 650S Spider, this limited production model features the award-winning 3.8-litre twin turbo V8 which produces 650PS (641bhp) and 678Nm (500 lb ft) of torque.

Performance and economy figures are just as exhilarating: zero to 62 mph (100 km/h) sprint takes a mere three AutoPartsAsia | NOVEMBER 2015 | 67

GLEANINGS - International

Volkswagen Diesel Vehicle Prices Drop 16 Percent APA Bureau

K

elley Blue Book, the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry, has recently reported that average auction prices, along with new-car shopping activity on KBB.com, for Volkswagen diesel vehicles have declined four weeks after the diesel emissions issue was announced.

The average auction price for Volkswagen diesel models dropped by nearly 16 percent since the news break of the emission crisis.

The average auction price for the brand’s gasoline-powered vehicles declined 2.9 percent. On KBB.com, Volkswagen new-car shopping activity for affected TDI models has decreased on average 2.4 percent.

“According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory,” said Tim Fleming, analyst for Kelley Blue Book.

“While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled.”

Site Metrics The Volkswagen Golf SportWagen and Golf have seen the most significant declines in shopping activity, with decreases of 6.2 percent and 3.7 percent, respectively.

The Audi A3 and Volkswagen Jetta SportWagen are the only TDI models seeing increases in activity, at 1.6 and 3 percent, respectively, which is consistent with segmentlevel traffic on KBB.com.

Audi A3 shoppers are increasingly cross-shopping competing luxury models following the announcement.

The most highly cross-shopped vehicles are Lexus NX, BMW 2-Series and Mercedes-Benz CLA. (Kelley Blue Book’s KBB.com Site Traffic Data is compiled weekly : Monday-Sunday).

“During the past four weeks following the emissions announcement, traffic

to KBB.com has generally decreased after an initial surge in interest for Volkswagen diesel models, likely because of the stop-sell and negative press,” Arthur Henry, senior manager of Strategic Insights for Kelley Blue Book, said.

“Interestingly, with regard to crossshopping data, consumers are not looking at fuel-efficient or hybrid vehicles. For example, shoppers interested in the Jetta TDI are looking to the Honda Civic, Mazda3 and Ford Fusion as alternatives, according to cross-shopping data from KBB.com.”

‘No Emission Issue For Volkswagen Cars In HK’ APA Bureau

V

olkswagen Group Hong Kong (VGHK), in a statement, has said that none of the passenger cars sold in Hong Kong or Macau was affected by the diesel emissions issue as the engine under investigation had never been imported to the local market.

According to the statement, “For commercial vehicles, Volkswagen Caddy is the only model imported to Hong Kong and Macau that is affected. All of these vehicles are technically safe and roadworthy.

68 | AutoPartsAsia | NOVEMBER 2015

A service campaign will be carried out with a total of 384 units of affected Caddy (model year between 2011 and 2015) and any affected customers will be informed individually in due course. VGHK is committed to ensuring that this issue is handled swiftly and transparently with minimum customer inconvenience.”

“VGHK will temporarily suspend the sale of the Caddy until the service campaign is carried out on all affected vehicles. We have been working closely with relevant

government authorities to advise them on the situation and our next steps to rectify the affected vehicles with full cooperation and transparency”.

“VGHK takes this case very seriously and will dedicate all its efforts to minimise any disturbance that may be caused to any affected Caddy customer. We apologise for all the inconvenience caused to our Caddy customers, and we are committed to do what we can to strengthen customers’ trust and confidence on us”, the statement said.

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CALENDAR AAPEX/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/ Auto Guangzhou China 20 - 23 Nov, 2015 China Import & Export Fair Pazhou Complex, Guangzhou Comnet Exhibitions Pvt. Ltd +91 11 4279 5000 Email: amanpreets@eigroup.in www.comnetexhibitions.com EXCON 2015 India 25 - 29 Nov, 2015 BIEC, Bengaluru Confederation of Indian Industry (CII) +91-44-42444555, Email: excon@cii.in www.cii.in 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

70 | AutoPartsAsia | NOVEMBER 2015

auto@hongkong.messefrankfurt.com www.automechanika.com AAITF (Auto Aftermarket and Industry Trade Fair) Bangkok, Thailand 9 – 11 Dec, 2015 Comnet Exhibitions Pvt. Ltd +91 11 4279 5000 Email: amanpreets@eigroup.in www.comnetexhibitions.com India Automobile Trade Fair – Auto’15 24-27 Dec, 2015, Expo Centre, Pune puneautoexpo@gmail.com +91 20 26054915/16 North American International Auto Show - NAIAS Detroit 9-24 Jan, 2016 The New Cobo Centre Downtown Detroit DADA mmunceyi@dada.com www.naias.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/ Logistics Asia 21-23 January 2016 Gandhi Nagar, Gujarat, India Radeecal Communications http://tradeshows.tradeindia.com/logisticsasiaexpo/ IMTEX Forming 2016 & ToolTech 2016 21-26 Jan, 2016 Bangalore International Exhibition Centre, Bangalore, India Indian Machine Tool Manufacturers’ Association imtma@imtma.in http://www.imtex.in/ 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 Auto Expo 2016 – Components Show 4-7 Feb, 2016 Pragati Maidan, New Delhi, India Confederation of Indian Industry +91-124- 4014060-67 Rachna.jindal@cii.in Auto Expo 2016 – Motor Show 5-9 Feb, 2016 India Expo Mart, Greater Noida, Delhi NCR, India Society of Indian Automobile Manufacturers +91-11-47103010, 24647810-12 delhimotorshow@siam.in

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/ Machine Tools Show 9 - 21 Feb 2016, Pune, India K & D Communications. http://kdclglobal.com/pmts-2016-overview.php AAITF (Auto Aftermarket and Industry Trade Fair) Shenzhen, China 26 – 28 Feb, 2016 Comnet Exhibitions Pvt. Ltd +91 11 4279 5000 Email: amanpreets@eigroup.in www.comnetexhibitions.com Automotive Testing Expo 2016 India 20-22 April, 2016 UKIP Media & Events Ltd Chennai Trade Centre, Nandambakkam, Chennai, India Renata Lengui renata.lengui@ukipme.com http://www.testing-expokorea.com/english/ Lagos Motor Fair Lagos, Nigeria 28 April – 4 May, 2016 Comnet Exhibitions Pvt. Ltd +91 11 4279 5000 Email: amanpreets@eigroup.in www.comnetexhibitions.com 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 AAITF (Auto Aftermarket and Industry Trade Fair Jakarta, Indonesia 21 – 23 May, 2016 Comnet Exhibitions Pvt. Ltd +91 11 4279 5000 Email: amanpreets@eigroup.in www.comnetexhibitions.com AAITF (Auto Aftermarket and Industry Trade Fair) Mexico City, Mexico 1 – 3 June, 2016 Comnet Exhibitions Pvt. Ltd +91 11 4279 5000 Email: amanpreets@eigroup.in www.comnetexhibitions.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

Automechanika Frankfurt 13 - 17 Sep, 2016 Frankfurt am Main Messe Frankfurt GmbH, automechanika@messefrankfurt.com Telephone: +49 69 75 75-0 www.messefrankfurt.com

Advertisers’ Index A Alsaeedi 9 Atlantic Grease & Lubricant

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Autoparts Asia

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C Continental

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AutoPartsAsia | NOVEMBER 2015 | 71

AUTO LAUGH

New Theory Of Relativity John S Powath He lives out of a suitcase.

He keeps pace with the growing global footprint of Asian Business Media publications.

John has a sense of humour whether engaging in business in Kuala Lumpur or Shanghai, Panama City or Akron. His anecdotal comments keep readers and executives in good humour

I

love cars. I’m fascinated by all types: Vintage, classic, retrofitted, the latest, including the driverless.

The first thing I do is to lift the bonnet and look at the muscle that drives. I feel like a surgeon peering inside the body. I love the sound of the engine: The purr, whir, buzz, roar, thunder, depending on the model. Electric cars give out a peculiar hum.

doubt happens in office. When you sit down to a cup of hot coffee, your boss will ask you to do something which will last till the coffee is cold.

I’ve admired politicians who can talk convincingly about any subject in the universe and beyond. They are governed by the law

I don’t dare fiddle with the engine, but in dire circumstances when the car stalls, I take out my tool-kit and try my luck. When I try to fix the machine, I recall what the mechanic does in the workshop. I attempt to do what he does. Too often I fail to fix the engine.

I’ve realised that there are many things common between what you experience while handling auto tools and our life itself.

I discovered the law of mechanical repair while attempting to fix the battery the other day. The job dirties the hand. When the hands become coated with grease (I think the engine is floating on grease), my nose invariably starts itching. It comes almost like an involuntary body response when I see grease-coated auto parts.

I’ve also discovered that the severity of the itch is inversely proportional to the reach. It is the auto law that gets into operation, I think. I prefer to call it the law of biomechanics.

While driving, when you change lane, the one you were in will always move faster than the one you are in. This law of variation holds true all the time.

Another theory that has proven beyond doubt is the law of random numbers. When you dial a wrong number, you never get a busy tone and very often someone will be picking up the phone. There is another one: The law of the bath wherein when the body is fully immersed in water, the telephone rings.

Under the law of close encounters, the probability of meeting someone you know increases dramatically when you are with someone you don’t want to be seen with. But the most common law that is proven beyond

72 | AutoPartsAsia | NOVEMBER 2015

of logical argument. Anything is possible for them, because they don’t know what they are talking about.

They also strictly adhere to the law of public speaking and remain alert and loyally follow it in letter and spirit. This is the law which says that a closed mouth gathers no feet. So they open up and blast on the microphone.

As we talk about politicians, there are certain qualities in them that are unmatched. For example, give an ordinary person a gun, he will rob somebody; but give a politician the country, he will rob everybody.

Taking this gun law further let me add this: Give a person a gun, he will rob a bank; give a person the bank, he will rob everybody.

These theories hold true all the time like the law of relativity.

NEI Expands Bearing Production Capacity

RNI No. MAHENG13758

www.autopartsasia.in

Vol.No.1 Issue No.6 November 2015 | US$ 20 `200

AUTO PARTS ASIA | NOVEMBER 2015 RNI No. MAHENG13758

Infrastructure Drives Construction Equipment Industry Paul Sabatini

All Roads Lead To NAIAS, Detroit

Arvind Balaji

ACMA Seeks Ecosystem For Innovation, R&D