Autopartsasia Dec 2015 Jan 16 by Asian Busniess Media

AAPEX Accelerates Aftermarket Advances

RNI No. MAHENG.2015/64732

www.autopartsasia.in

Vol.No.1 Issue No 8 & 9 Dec’ 15 / Jan’ 16 | US$ 20 `200

AUTO PARTS ASIA | Dec’15 / Jan’ 16 RNI No. MAHENG.2015/64732

US, China Propel

Aftermarket

Growth

SEMA Steals Auto Enthusiasts’ Hearts

Revamp, Modernise Eco-system For Automotive Industry – Vinod Dasari

Vol No 1 | Issue No 8 & 9 | Dec’ 2015 / Jan’ 2016

ISSUE

IN THIS

BorgWarner Banks On Innovation, Acquisitions For Growth

Revamp, Modernise Eco-system For Automotive Industry

CORPORATE

INTERVIEW

6 IMPRESSIONS 7 EDITORIAL - Customer Is King

COVER STORY

US, China Propel Aftermarket Growth

8 TRAILBLAZING TRENDS - By T Murrali

10 PEOPLE

- Y K Koo Is New MD Of HMIL - Grotendorst Heads E-Mobility Division Of ZF - Dahl To Head FCA US Vehicle Safety and Regulatory Compliance - KaherKazem to lead GM India - Daimler AG Appoints R J BrünggerTo Board of Management

14 SPECIAL REPORT - Deluge Dismisses Divide

19 CORPORATE

- BorgWarner Banks On Innovation, Acquisitions For Growth - SAME DEUTZ-FAHR Plans Higher Capacity Tractors To Revamp Global Footprint DISCLAIMER: The maps of the US and China used in the cover of this issues are used for representational purpose only and NOT to SCALE.

2 | AutoPartsAsia | DEC’ 15 / JAN’ 16

28 INTERVIEW

- Revamp, Modernise Eco-system For Automotive Industry

Orbit Bearings Bears Fruit With OEMs

SEMA Steals Auto Enthusiasts’ Heart

BRAND TRENDS

AFTERMARKET

FEATURES

- Excon Exposes India’s Construction Equipment Production Prowess

- Auto Expo Component Show 2016 -UKIP Testing Expo in Chennai To Present Latest Systems, Technologies

EVENT

48 AFTERMARKET - Madhus Garage Equipments Thrives On Quality - Europart Middle East To Expand Business, Enter New Markets - AAPEX 2015 Accelerates Aftermarket Advances - SEMA Steals Auto Enthusiasts’ Heart

PREVIEW

79 GLEANINGS International - Bosch Solutions For Connected Car

- Kia Motors Plant In Mexico Is Production-Ready - Volkswagen Group Caps Capex - 3D Printing Helps Build A Ford Supercar At Home - Jaguar Land Rover Expands UK Engine Plant - Volvo Cars To Develop NextGen Technologies With Microsoft - Twenty Five years of 3D printing at BMW - ZF Honours 14 Top Suppliers - Global Automakers for Measured Approach to NCAP Changes - Connected Car To Boost Customer-OEM Link - Mercedes-Benz To Capitalise Employee Age Gap

FOCUS

- Magna International Opens Two Plants In Gujarat

TECHNOLOGY - Galvanised Steel

- Continental Creates Intelligent Car Windows - Ford Suit To Show Dangers of Drug Driving - ZF TRW’s Centre Airbag To ProtectPassenger From Side Impact - McLaren Ends P1Super Car Production - PlugVolt fosters global efforts to develop energy storage solutions

94 CALENDAR OF EVENTS 96 AUTO LAUGH - Mechanics Of Life

AutoPartsAsia | DEC’ 15 / JAN’ 16 | 3

IMPRESSIONS

ABM Hosts ‘Partnering Pune’

sian Business Media (ABM), the publishers of AutoParts Asia magazine, hosted ‘Partnering Pune’, a gettogether on November 18, 2015, to highlight the magazine’s services to the automotive industry. Representatives from the of Automotive Component Manufacturers Association of India (ACMA), Automotive Research Association of India and other industry bodies participated in the event. The CEO of ABM, John Powath, said: “Though many of you know about AutoParts Asia, which had its sixth issue in November 2015, we wanted to introduce it to Pune, which is a very prominent destination in the auto component manufacturing space. This city is also home of several national and international OEMs”. “The automotive industry faces multiple challenges like the everincreasing consumer expectations, regulatory compliances, safety concerns etc. Therefore, the company has positioned AutoParts Asia as an international magazine with a tagline, Connecting Suppliers Globally”, he said. ABM’s flagship magazine is Rubber Asia. It has in its fold Polymers and Tyre Asia magazine also. The company operates on three other verticals: The Indian Rubber

Summit & Dinner, Asian Latex Conference, and Asian Tyre & Rubber Conference. “Next year we will add one more event: `The Asian Retread Conference’ in October 2016 in Malaysia,” Powath said. Speaking on the occasion the Deputy Executive Director of ACMA, AswaniJotshi, outlined the role played by the apex body in the auto components manufacturers’ growth. VinodPatkotwar, CEO, Crown Rubber Products, spoke on the importance of B2B media in the growth and development of the manufacturing industry, especially the small and medium enterprises. P N R Rajan, Convener, Indian Automobile Trade Fair, spoke on the Auto Show in Pune. The Editor of AutoParts Asia, T Murrali, spoke about the expectations of the overseas readers from the auto component manufacturers in India. He said it was necessary for the players in this segment to look at ‘disruptive and emerging technologies’ to enhance their business prospects. “Disruptive technology, the new buzz word, is nothing but an innovation that can help create a new market and value network, eventually disrupting the existing market and the related value network. Vijay Kurian Abraham, Vice President, ABM, proposed a vote of thanks.

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. 6 | AutoPartsAsia | DEC’ 15 / JAN’ 16

he global automotive industry in general hopes to end the year on a positive note and start the New Year with high hopes. The 2015 calendar year is also the financial year for most of the companies and those who follow different periods synchronise with the world leaders to take stock of the market trend and working results. The US, the market leader, expects to report a consistent growth. For many others, including the emerging ones, the year-end result may be flat or a little upward. Falling oil prices and better job market favoured the US. Currency fluctuation and a faltering economy unnerved the Chinese. In India, where April-March is the fiscal year, the trend is promising. Volkswagen, the company that overtook Toyota and reached the number one position in the first half, is trailing. It has been served with a Notice of Violation by EPA for the use of defeat devices on its diesel engines. It had a terrific impact on the fortunes of the company. Recuperation may take time. The rise and fall of sales numbers reiterate that the Customer is King. The latest message from the Automotive Aftermarket Products Exhibition (AAPEX) and Specialty Equipment Market Association Show (SEMA Show) in Las Vegas, USA, in which AutoParts Asia participated, is that the customers in the aftermarket are becoming more value-conscious and less price-sensitive. The new products on show there reflected this paradigm shift in the kings’ preferences. We carry reports on these events in this issue, which has other regular reports that give glimpses of the world automotive industry and markets. The Cover Story is on the changing lucrative and growth-oriented automotive aftermarket which is expected to grow three to five percent in the next five years. It will be driven by the US, which might witness three percent growth in three years, and China, which is estimated to grow 16 percent to US$229 billion by 2019. The factors that propel the aftermarket growth and the impediments that create roadblocks are described in detail. We have also a special report on the catastrophic floods in Chennai and its impact on the automotive industry. The unprecedented floods in Chennai which disrupted power, water supply, communications, traffic and our editorial operations for days have forced us to combine the December 2015 issue of AutoParts Asia with that of January 2016. The combined issue will have 100 pages. Wish you all a Happy and more exciting and rewarding New Year.

E DIT OR IAL

Customer Is King

Kurian Abraham Editor-in-Chief 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 | DEC’ 15 / JAN’ 16 | 7

TRAILBLAZING TRENDS

Wanted Clarity

he Honda Clarity Fuel Cell sedan made its North American debut at the 2015 Los Angeles Auto Show. Serving as the next evolution of the OEM’s fuel cell technology, the sedan leverages two decades of advancement in fuel cell technology with significant gains in packaging, interior space, efficiency and real-world performance. Honda has been developing hydrogen fuel cell vehicle for more than two decades and I did drive one of the concepts in Tokyo way back in 2006. Technological innovations to the Clarity Fuel Cell have created a fuel cell stack that is 33 percent more compact than its predecessor with a 60 percent increase in power density compared to the outgoing Honda FCX Clarity. The more compact fuel cell powertrain, comparable in size to a V-6 engine, fits entirely under the hood of the car, allowing for a spacious cabin with seating for five passengers. The new Honda Clarity Fuel Cell will feature a driving range estimated to exceed 300 miles, and an anticipated refuelling time of approximately three minutes at a pressure of 70 Megapascal. Interestingly the platform is going to serve as the foundation for the nextgeneration Honda plug-in hybrid electric vehicle that is expected in 2018. The delay will help the OEM deepen the technology and therefore, the vehicle will have more than thrice the all-electric range of the Accord Plug-In Hybrid

8 | AutoPartsAsia | DEC’ 15 / JAN’ 16

Sedan.

Side Impact Interesting development on safety front is the new airbag to improve side impact protection. Developed by ZF TRW, the Active and Passive Safety Technology Division of ZF AG, the centre airbag is integrated into the inner side of the seat back and deploys to help protect the head, shoulder and torso areas of occupants in the front seat. Besides, it also helps protect occupants in ‘farside’ and ‘near-side’ crashes by deploying a bag cushion between the driver and front seat passenger. In the event of a far-side impact, where an oncoming vehicle or object strikes the opposite side of the vehicle to the driver with sufficient force, the centre airbag helps keep the driver in place. It can minimise side displacement of the driver and reduce the risk of interaction of the driver with the front seat passenger or surrounding structural vehicle interior parts. It uses a hybrid inflator with one-piece-woven bag or sewn cushion technology. The modules can be designed to meet the many different OEM vehicle design choices including a tether mechanism which promotes a triangular shape upon deployment.

Light-Weighting Innovation is the key for any system supplier. For the past decade the focus of innovation has shifted from adding value or feature to the customer, to light-weighting the vehicle. This is perhaps due to the intent of becoming

By T Murrali greener and offer improved fuel economy. On these lines Magna International has come up with several innovations that helped Cadillac to design and build lighter vehicles enhancing performance and improving fuel economy with lower emissions and cost of ownership. The Cadillac CT6 has one of the auto industry’s most advanced body structures. The innovative products that have either debuted or are coming soon in Cadillac vehicles, include carbon fibre hoods, aluminium oil pans and a host of highpressure aluminium die-cast components for the body and chassis. In the case of hoods, they are more than 27 percent lighter than aluminium and 72 percent lighter than steel hoods. The oil pan is about 1.3 kg lighter, about 60 percent than its steel counterpart. The initiatives not only reduced weight but also contained the number of parts enabling the OEM to optimise assembly operations such as front body hinge-pillar etc. They provide the functionality of 35 parts and reduce the number of components by 20 percent. These weight-saving components contribute to the overall mass reduction of the CT6, enabling it to be more agile, efficient and lighter than competitive offerings. CT6 will begin production by the year-end. Innovations to continue . . . See you next month.

PEOPLE

Y K Koo Is New MD Of HMIL APA Bureau

K Koo is the new Managing Director of Hyundai Motor India Ltd (HMIL). He replaced B S Seo, who returned to the company head quarters in Seoul after over five years in India. Koo had served in India earlier.

In other changes, B S Jeong assumed the charge of Executive Director, Sales & Marketing, relieving Y J Ahn, who now leads the Corporate Affairs team of HMIL, a post held by Y K Lee, who has returned to Korea.

Dahl To Head FCA US Vehicle Safety And Regulatory Compliance APA Bureau

CA US LLC has appointed Michael Dahl Head of Vehicle Safety and Regulatory Compliance, effective December 1, 2015. Dahl replaces Scott Kunselman who had announced his decision to retire. Prior to his appointment, Dahl held the position of Director, Gasoline/Diesel Engine Programmes and Global Powertrain Coordination where he oversaw the development and launch of six new engines, including the award-winning 3.0-liter EcoDiesel V-6. Previous to that, he was Director,

10 | AutoPartsAsia | DEC’ 15 / JAN’ 16

Supplier Quality. Dahl joined the Company in 1985 as part of the Chrysler Institute of Engineering (CIE) programme. He has held a series of positions of increasing responsibility with an emphasis on powertrain engineering, controls, and electronics. He holds a Bachelor of Science in Electrical Engineering from the University of Notre Dame. Dahl also earned a Master of Business Administration from the University of Michigan and a Master of Science in Electrical Engineering from Oakland University.

Grotendorst Heads E-Mobility Division Of ZF APA Bureau

örgGrotendorst (46) is the new head of the E-Mobility division of ZF. He will be in charge of this division, to be launched in January 2016, acknowledging the enormous significance of future technologies in this field. In this sixth division, the company is bundling all its activities in car and commercial vehicle electrification at its Schweinfurt location. The Electronic Systems and Electric Drive Technology business units are the core of the new E-Mobility division which will include all the e-mobility projects from the entire company. “Mobility in future will increasingly be about electrification, digitization, and interconnectedness. JörgGrotendorst, a graduate engineer, has 20 years in automotive electronics and is a proven expert in the field,” ZF CEO, Stefan Sommer, said. Grotendorst came to ZF from Siemens AG in Erlangen, where he managed the e-Car Powertrain Systems business unit in the Digital Factory division since June 2012. He had spent 12 years at Continental AG in various functions. Before that he was Head of the Hybrid & Electric Vehicle business unit. After studying Electrical Engineering at the former GerhardMercator University, Grotendorst embarked on his career in 1996, working on electronic brake control systems at the former DaimlerChrysler AG in Stuttgart. “I’m impressed at the many good examples I’ve seen at ZF for digitisation of mechanics. Combining logic and hardware and developing a broad portfolio in the field of electromobility with this comprehensive expertise will be an extremely exciting challenge I am very much looking forward to,”Grotendorst said.

PEOPLE

Kaher Kazem To Lead GM India APA Bureau

eneral Motors has announced that KaherKazem, Chief Operating Officer (COO) of GM India, has been appointed president and managing director of GM India, effective January 1, 2016. “With Kaher’s hands-on experience and direct knowledge of the business, we are pleased to appoint him to lead GM India at this important time,” said GM Executive Vice President and GM International President Stefan Jacoby. “GM is

committed to India for the long term. Kaher’s proven track record will enable us to deliver to Indian consumers the great vehicles they want and the world-class customer experience they deserve.” Kazem joined GM Holden in Australia in 1995 as a senior engineer. He later held several leadership positions at GM Holden Manufacturing Operations. In 2009, he was appointed vice president of Manufacturing and Quality for GM Thailand/ASEAN.Prior to

Kaher Kazem, President & MD, GM India

taking on his current position earlier this year, where he has managed the industrial side of the business, Kazem was president and managing director of GM Uzbekistan from 2012. Kazem will succeed Arvind Saxena, who has decided to retire from GM, after leading GM India since early 2014.

Daimler AG Appoints R J Brüngger To Board Of Management APA Bureau

he Supervisory Board of Daimler AG has appointed Renata Jungo Brüngger (54) to the Board of Management with effect from January 1, 2016. She will take over responsibility for Integrity and Legal Affairs from Christine Hohmann-Dennhardt. The appointment of Brüngger is effective until December 31, 2018.

“With Brüngger, an experienced Daimler lawyer will become a member of the Board of Management. At the same time, this will make the Board of Management younger and more international. She is a proven expert in international commercial law. Her outstanding expertise is the result of 25 years of experience as a lawyer and

attorney in several internationally active companies. With her competence, Brüngger will make a major contribution to the further development of Daimler’s high standards in the fields of integrity, compliance and legal affairs,” Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG, said.

Hofmann, Järvklo Join Volkswagen Supervisory Board APA Bureau

pon application by the Board of Management of Volkswagen AG, Jörg Hofmann (59), First Chairman of IG Metall, and Johan Järvklo (42), Representative of the Swedish Metal Workers’ Union at Scania, were appointed members of the Supervisory Board of Volkswagen AG by Braunschweig Local Court. The appointments were made pursuant to Section 104 of the Aktiengesetz (German Stock Corporation Act) and were occasioned by the recent resignations of Berthold Huber

12 | AutoPartsAsia | DEC’ 15 / JAN’ 16

(65) and HartmutMeine (63), who laid down their mandates on the Supervisory Board with due notice. Dr Wolfgang Porsche, who is a Member of the Executive Committee and a representative of the family shareholders on the Supervisory Board, said: “As Chairman of IG Metall, Berthold Huber was instrumental in developing innovative and flexible collective agreements that safeguarded jobs in German industry without compromising the competitiveness of companies.” Bernd Osterloh, Member of the Executive Committee and Chairman

of the General and Group Works Councils of Volkswagen AG, said: “I have known Berthold Huber for almost 30 years. He has played a key role for Volkswagen and for our colleagues. His successor is Jörg Hofmann, the new First Chairman of IG Metall, who has agreed to join Europe’s largest automaker”. “The appointment of Johan Järvklo from Sweden sends a clear signal that as employee representatives we feel it is important to give our colleagues from international locations the opportunity to participate in the highest executive body,” Osterloh said.

SPECIAL REPORT

Deluge Dismisses Divide By T Murrali

he rains since November that battered Chennai, the automotive hub of the country, culminated in a catstrophic deluge on December 2, 2015; it inundated slums, housing colonies, life-style apartments, bungalows, premises of hospitals, educational institutions, Information Technology enterprises, national and multinational

14 | AutoPartsAsia | DECâ&#x20AC;&#x2122; 15 / JANâ&#x20AC;&#x2122; 16

automotive manufacturers and small-scale autoparts companiesand a host of others. The floods, after a prolonged rain spell in the fourth mostpopulous metropolis in the country,shattered all industrial and services sector activities and human life. Debates are still going on whether the deluge was the result of bountiful of rains, more than 50 cm in a day, or due

to human mismanagement and want of adequate and timely intervention of the decision-makers and the government machinery. The deluge affected every segment of industry and traumatised people of all classes. The deluge dismissed the divide between the rich and the poor. All of them were at the mercy of the elements or rescue teams for a few days.Many drowned, thousands lost houses, household items, and everybody in the city and suburbs had some sort of losses and unforgettable and harrowing experiences. The transport system – rail, road and air came to a halt. The Chennai airport,which normally handled about 350 aircraft daily,had to suspend operations for four days as its runways and tarmac were flooded. As an interim arrangement the Airports Authority of India made use of the air strip of the Naval Base in Arkonam, about 65 km south-west of Chennai. The private jet owners such as TVS Motor Company, Sun Television Network, Joy Jets, Kalyan Jewellers, Garuda and Jet Airways were the worst hit. Some of their aircraft were pushed aside by the floods damaging the fuselage and avionics. According to reports the damage is estimated at Rs 200 crore. This correspondent scheduled to return to Chennai after attending Automechanika Shanghai on December 4, was stranded in Hong Kong airport for about 20 hours. The circuitous return trip finally reached Bengaluru and the onward journey to Chennaihad to be by bus. Roads bore the brunt of the deluge and impacted the road transport. As tens of thousands of two-wheelers and thousands of cars and small commercial vehicles were submerged in the floods,people had to depend entirely on the public transport. With no modes of transport available for the city commuters,the government operated the Metropolitan Transport Corporation busesin all possible areas free of cost for four days from December 5. While this amounted to a loss of about Rs6 crore to the exchequer, the majorexpenditure was on maintenance. The local trains, except the MRTS and Metro Rail,also cancelled service as the tracks were inundated and water overflew many bridges across the rivers Adyar and Coovam. Some of the big IT companies managed the situation by shifting teams of employees to Bengaluru to continue the operations for their overseas customers. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 15

SPECIAL REPORT

The telecom companies lost about Rs 300 crore due to flooding of the ground units of telecom towers. The Tamil Nadu Electricity Board incurred about Rs 450-crore loss as flood waters submerged the sub-stations and allied control units.

Automotive Companies At A Loss Among the segments that reported huge losseswas the automotive industry, which lost production, materials and sales resulting in an estimated loss of Rs 2,500 crore. According to the Society of Indian Automobile Manufacturers (SIAM), the Chennai auto industry had to take a production hit of around 15 percent especially by the major automakers like BMW, Ford,Renault-Nissan and Hyundai. Hyundai Motor India’s facility in Sriperumbudur makes 680,000 units a year, while Ford India’s facility makes 3.4 lakh engines and two lakh vehicles annually. The BMW’s Chennai plant makes around 14,000 cars a year. Ashok Leyland and Daimler India Commercial Vehicle were also forced to shut down production. Ashok Leyland’s mother plant at Ennore, which accounts for over one-third of the company’s total production, had to stall operations. TVS Motor said in a statement 16 | AutoPartsAsia | DEC’ 15 / JAN’ 16

that the company suffered sales loss of approximately 15,000 units due to inclement weather. Royal Enfield had a production loss of 11,200 motorcycles due to heavy rains and floods. The new plant of Yamaha was also shut.

Mahindra and Honda organised free check-up and service. Similarly a few third-party multi-brand service centres for cars, including MyTVS, organised special camps. Theyoffered to tow and repair the flood-hit cars at reduced rates.

Though some of the vehicle manufacturing plants were not directly affected by floods, they faced problems due to other issues related to the supply chain of parts and components, and delivery of finished vehicles. According to the Director General of SIAM, Vishnu Mathur, “December sales would be substantially impacted as production has taken a hit. It would at least take a month for the automakers to regain their proper production levels.”

MyTVSmobilised more than 100 service engineers from its other outlets in Tamil Nadu to support the service network in Chennai. G SrinivasaRaghavan, Executive Director, TVS Automobile Solutions, (TASL) said, “Customers are looking for end-to-end services like, towing, check-up, expert advice, quality service, insurance, etc. Therefore, we, at TASL, have created a WAR room to attend to our customers on a day-to-day basis. We are working closely with insurance companies to enable them to process the settlements faster. Our entire service network in the City, with more than 75 bays, is

Servicing Support Some of the two-wheeler companies including TVS, Bajaj,

SPECIAL REPORT fully geared to the task of providing quality service. Through our roadside assistance business, we have arranged 15 dedicated towing vehicles for our OEM customers”.

Component Makers Natural calamities have disrupted the automotive industry across the world and in Asia more recently. For instance, the 2011 earthquake and tsunami in Japan hit car production while the floods in Thailand the same year inundated several automotive companies. In addition to affecting the domestic market, theirimpact had a cascading effect on markets across the globe. Similarly the recent floods in Chennai will have its impact in India’s export markets also. Tamil Nadu accounts for close to 20 per cent of the total turnover of the Indian auto components industry and is a significant contributor to the State’s economy. The State is also home to the highest number of SMEs in the country, especially in the auto components sector which employs over six lakh people directly or indirectly. The tyre manufacturers such as MRF, JK and Apollo were affected. According to the people in the know, the mother plant of MRF in Thiruvottiyur was inundated affecting the machines, especially in the off-the-road tyre building section. Arvind Balaji, President, Automotive Component Manufacturers Association of India (ACMA) said, “In the wake of this unforeseen calamity, there is an urgent need to announce a relief and rehabilitation package for the industry and its employees, especially for the SME segment. The industry must be facilitated to start its operations immediately so that the livelihood

18 | AutoPartsAsia | DEC’ 15 / JAN’ 16

of thousands of employees is not further affected.” The apex body representing the Indian auto component Industry has urged the Government of Tamil Nadu and the Government of India to undertake immediate relief and rehabilitation measures for the severely impacted industry in Tamil Nadu. Some of the recommendations made by ACMA to the Government of Tamil Nadu include immediate installation of water pumps in industrial estates that are flooded, providing uninterrupted power supply to the industry, arranging for generator sets to industries where these have been damaged, setting up of ESI health camps for employees and their families, deferring of sales tax by six months and waiver of electricity tax for four months. ACMA has also requested to release long-term soft loans from banks to buy essential industrial equipment, expedite settlement of insurance claims, defer customs duty, service tax and excise duty for six months and to extend 100 per cent depreciation on damaged capital equipment.

An Advantage An unexpected advantage of the floods, in spite of all its inconveniences, was that several households had a rare experience of togetherness. Having been confined indoors for a few days without power, communication network and internet, people could interact with their own family members. Such communications had become rare and far between after the onslaught of television and mobile phones with their diversity of diversions. Deluge dismissed the divide within the family also.

CORPORATE

BorgWarner Banks On Innovation, Acquisitions For Growth 4,000-square-foot fitness centre, which will make it a great place to work.

Robin Kendrick

By T Murrali

orgWarner, a global automotive component supplier, whichcompleted a 46,000-sq.ft expansion of its tech centre recently, is planning to achieve $15 billion in sales by 2020. According to Christopher Thomas, BorgWarner’s Chief Technology Officer, the expanded tech centre near the company’s headquarters in Auburn Hills will develop a host of new components for transmissions, turbochargers, other engine components, and driveline components to support the company’s long-term goal.

While most of the growth will come from in-house development, somewill be from acquisitions. The company has recently completed acquisition of Remy International, which has given its nod to further the process. The $1.2-billion Remy, which manufactures starter motors, alternators, hybrid motors and electric vehicle motors, has 6,600 employees. Robin Kendrick, President and GM Transmission Systems, said the company continues to innovate products which leads to increased penetration of its current technology on vehicles. These offer customers and OEs increased fuel efficiency, less emissions and

improved performance.

When new products are developed at a faster pace, it is necessary to work in tandem with other systems suppliers and the Tier-2 companies in the value chain. While agreeing that these are challenges, Kendrick said, “We try to help our customers whenever we can with systems knowledge relating to the overall system and how other parts of the system need to interact with our products; we work with the OEMs to develop specifications to meet the requirements of the system. We have the capabilities that we bring to the customers. Sometimes the customer wants them or they do it themselves. We go around the world to get

competent suppliers who have the resources to develop the product and if they have the combination we will bring them along to match that.” For instance, OEMs that develop engines are constantly carrying out testing and innovation on their engines. BorgWarner, for its part, brings to the table what it can do in terms of the turbocharger, the kind of performance improvements it can generate etc.; they use the data to integrate and improve the design of their engines to reduce emissions. Kendrick said the company is integrating advanced high-strength materials into its technologies to help improve fuel economy and performance.

Towards this initiative the company has hired 180 new engineers, programme managers and supportive sales personnel to work at its Powertrain Technical Centre. The expanded tech centre includes a friction material testing lab, a torque transfer testing lab, new office space as well as a wellness centre and a AutoPartsAsia | DEC’ 15 / JAN’ 16 | 19

CORPORATE

“Aluminium in place of steel is lighter; magnesium in place of aluminium is even lighter, so we do light-weighting where we can. Some lighter weight materials are more expensive so there is always a trade-off between the cost and the weight. The OEMs have been continuously working on reducing the weight of vehicles, however, there is a value equation to the cost of the lighter weight material. In addition, these materials have to meet the temperatures, pressures and functioning of the product and the environmental norms, and have the same durability and performance.” On the challenges in commercial vehicles he said the prime among them is power density i.e. the need to generate more power. Also, compact designs with less complexity that are less expensive are sought by the vehicle makers. “You have to integrate things to be supportive to the customer and innovative in your solutions. You also have

20 | AutoPartsAsia | DEC’ 15 / JAN’ 16

to move quickly to bring those designs into the market,” he said.

Growth Strategies Kendrick said BorgWarner has clear strategies that are going to drive its growth. “We break it down into where that growth is going to come from. Part of that is going to be from new products. In some years it may be higher based on the acceptance from the customers of the new ideas we bring in. In some other years it may be a little lower depending on the business cycle of those individual OEMs. The cycle of refreshment of the vehicle is getting faster, the refreshment of engines is faster as also the powertrain in general. As those refreshes get faster there are more opportunities to bring in new products,” he said. “BorgWarner is proud of its product leadership. In order to be the leader it is necessary to be comfortable with designing products that obsolete its own product. If you don’t do it, your

competition will. The key is to continue to create value to the customer through innovative design. However, there is always a trade-off as managing investments is very important. It is necessary to be innovative not only in product design but also in manufacturing strategies, capital investment and all aspects of the business. You have to drive capital in line with customer expectations,” Kendrick said.

INTERVIEW

Next Gen Product Is The Key

About the specific strategies and roadmap for implementing the growth plans, Christopher P Thomas, CTO, BorgWarner, said that Next Gen and evolutionary products will steer the growth of the company.Edited Excerpts: Q: Can you explain the roadmap for BorgWarner to achieve $15 billion in sales by 2020, considering that this Technical Centre is one important part? Thomas: Absolutely right; this centre is one part in a big mission to achieve $15 billion by 2020. This target, which we laid down in 2013, is to double the size of the company. Majority of that is going to be organic. It’s about taking the products of today and making next generation products and evolutionary products. Some are engineered here, some in Europe and some in Asia. Q: What do you mean by the ‘next generation’ products? Thomas: Say if you are making a turbocharger, the next generation one would be with an advanced compressor with better aerodynamics. The next generation could really be in electrifying the turbocharger and having an electric motor in it. You have a conventional turbo and you add on an eBooster to blow air into the engine; it overcomes the transient response problems in the turbocharger. These are the next generation products. So we could e-push the products that we are bringing to the market soon. We will also look at products that we don’t make today. Q: What is the ‘evolutionary’ product? Thomas: It would be one where we are constantly improving the aero dynamics of the compressor wheel. We have just launched our BV80 which is a CV turbocharger that we supply to many different OEMs. The efficiency of this is much higher than any of our competition because we have class-leading turbine efficiency, bearing durability and compressor efficiency. This makes the whole

turbocharger much more efficient which means that you don’t have to throttle the engine that much; so you get better fuel economy. This is an evolutionary process, and we are constantly doing it. Q: Which new areas you plan to enter? Thomas: Everything we do is engines, transmissions and drive lines. Everything we work on is focused on fuel economy, emissions and performance. There are products we can make either with our existing manufacturing competencies or there are new products that we are developing. Q: What will be the core area for this particular Tech Centre? Thomas: This Tech Centre has every business unit under one roof. We have our Transmission Systems and TorqTransfer Systems that are 4-wheel drive systems. On the engine side we have Turbo Systems, Emission Systems and Morse Systems; also Thermal Systems that make fan and fan drive systems. Q: Can these new innovations get you customers? Thomas: Well, we pretty much sell to everybody today, so there are not that many new customers we can tap. Of course, we would like to grow our share with new technologies that we would like to bring to different customers so that per vehicle content increases. Q: What kind of growth do you anticipate while increasing the content per vehicle? Thomas: It is difficult to put it in those terms. We have much higher sales on some vehicles than others; so it’s difficult to put a target per vehicle. Q: Are these innovations driven by

the customers or the megatrends or regulations? Thomas: We focus on megatrends, disperse it down to industry and then to the powertrain. We look at things like changing demographics, urbanisation and how these are going to affect vehicles. We look at more women-buying vehicles, the aging population and the impact it will have on the powertrain. From all this we drive down to the powertrain trends that we are really focusing on. The key trends are evolution of internal combustion engine, thermal management, drivetrain evolution and electrification. Ultimately it is all about efficiency. Q: Would you also be working on new materials? Thomas: We are really focused on friction materials. We are into a lot of transmission components and the friction material that goes in a clutch inside the transmission. There is a lot of science behind this and we have several patents on our friction material which we are constantly evolving. It’s very difficult to have it slip when you want it to slip and transmit torque when you want it to, without having jerks or slides or noise that it can make. We have a lot of material development; we get down to the molecular level to understand what’s going on. We also do material development in some of our other products like the chains. Each day we make about 75 miles of chains. The science depends on the links and how oil films develop on those links; how the oil is retained as it is spinning around the engine and how long it lasts. So we are down into the tribology which is the friction of those components together and really understanding the core science level of how those things work. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 21

CORPORATE

SAME DEUTZ-FAHR Plans Higher Capacity Tractors To Revamp Global Footprint By T Murrali

he Italy-headquartered SAME DEUTZ-FAHR is set to launchtractors in the 440 hp-plus range. Currently it makes tractors up to 340 hp,and other farm implements including combined harvesters. The company will be expanding its dealership footprint for overall growth. The Industrial Executive Director of SAME DEUTZFAHR, Andrea Paganelli,

22 | AutoPartsAsia | DEC’ 15 / JAN’ 16

told AutoParts Asia that the company has developed 340 hp tractors and has been testing them. Alongside, it has been working to upgrade the 440 hptractorsto 500 hp, through different combinations of internal systems. “Our target is to launch 500 hp tractors in two years’’, he said.The company is investing about € 100 million to set up a new facility in Lauingen, Germany, to make 440 - 500 hp tractors.

Construction of the building is completed and the assembly line is being set up. The plant will be production-ready by September next year and will be inaugurated in the beginning of 2017. The installed capacity will be around 12,000 units. The plant will have a flexible assembly line to make tractors starting from 120 hp to 500 hp. Initially the company will produce about 150 units of 500 hp tractors a year and ramp up

CORPORATE based on the market demand, Paganelli said.

Rising Demand Though the market for tractors ranging from 350 hp to 500 hp

into this segment because our satisfied customers of up to 350 hp range do not have an option in SAME DEUTZ-FAHR even if they want to upgrade. Moreover, the performance of

new tractors will be powered by another enginenot manufactured by Deutz,” he said. He did not mention the source of the engine.

Manufacturing Plants The mother plant of SAME DEUTZ-FAHR in Treviglio facility makes tractors in the range of 70 hp and 170 hp. The plant in Lauingen makes tractors from 120 hp to 440 hp, while that inChâteaubernard, France,makesgrapes and olives harvesters of 100-187 hp. The Županja plant in Croatia produces combined harvesters in the range of 222 to 395 hp.The plant inBandirma, Turkey, makes 50 hp to 105 hp tractors.

Andrea Paganelli and Aurelio Noto

is limited, the demand has been increasing, he said. The present markets are in North America, Europe and Asia. The Asian market is unclear and evolving. Annually, North America accounts for about 15,000 to 20,000 units and Europe for about 5,000 units. These markets are growing rapidly with the increasing size of the farms owing to various factors like co-operative farming.

our tractors will be better and the cost of ownership will be significantly less than that of the other players,” Paganellisaid. Acquiring cost plays a significant role in tractors in the higher range. Asked how SAME

In China, the company has two plants in operation and a third one is in the making. The one inLinshu makes 25 hp to 270 hp tractors. The assembly plant in Suihua makes tractors above 200 hp. Its new plant in north of China will assemble CKD kits from Germany.

India Operations The Italian company’s plant in Ranipet in Tamil Nadu, India, has an annual capacity to make 50,000 tractors in the 30-80 hp range. The CEO of SAME

There are quite a few companies that cater to the 350 hp-plus segments of tractors. However, SAME DEUTZ-FAHR will be differentiating itself fromothers on two counts: Performance and cost of ownership. “We have a wide network of 3,120 dealers the world over. It is important for us to enter into these segments because our dealers need themfor their customers. The characteristics of our new tractors will be at least at the same level as those already in the market. We are getting 24 | AutoPartsAsia | DEC’ 15 / JAN’ 16

DEUTZ-FAHR will position its new offering, he said, “We wanted to price our tractors between the cost ranges of the competitors while leveraging the trust that our customers have in our products. The

DEUTZ-FAHR India, Aurelio Noto, said the company has recently introduced a new range 3 series tractors of 35, 40 and 42 hp engines. About 75 percent of the

CORPORATE production of the Ranipet plant is exported to the neighbouring countries, mainly to Turkey, and to Germany, Italy and Spain. It exports engines, and components for engines and transmissions, fully assembled lifts, range of castings, forgings and machined parts worth ₹ 60 crore a year, Noto said. The FARMotion brand of engines are manufactured only in India with capacities ranging from 30 hp to 170 hp, for the domestic (Euro 3) and global (Euro 4) requirements. These were originally made at the mother plant in Treviglio and shifted to India to leverage the inherent local potential.

Product Range In 2014 the group manufactured 32,288 tractors, 387 combined harvesters, 204 grape/olive harvesters, 26,990 engines and 29,705 transmissions, and registered a turnover of € 1,201 million in 2014, same as in 2012. Tractors contributed 74 percent of the revenue while 19 percent came from spare parts, seven percent from harvesters and the rest from the sales of other items. In terms of brand, DEUTZ-FAHR fetches 65 percent followed by SAME 18 percent, Lamborghini Trattori eight percent, SHU-HE six percent, Grégoire two percent and Hürlimann one percent. Globally the group has 15 subsidiaries / Joint ventures and 141 importers. Though the volumes are not much because of the hp range it operates in, the key driver for the successful presence in the global market is its spending on research. On an average SAME DEUTZFAHR spends around 5.7 percent of the total revenue for new product development and R&D. According to Paganelli the global industry average is about three percent. Traditionally Europe has been the major business centre for SAME DEUTZ-FAHR. Off late it has been dipping. However, the other markets, especially in Asia, are growing. “Our target is 26 | AutoPartsAsia | DEC’ 15 / JAN’ 16

to grow in Asia and Africa,” he said.

The Genesis The Cassani Tractor, named after the founder of the company Francesco Cassani, was introduced in 1927. It was one of the first tractors in the world with a diesel engine. In 1942 SAME -Società Accomandita Motori Endotermici was established. The company also pioneered the four-wheel drive technology for tractors by introducing SAME DA 25 tractor. In 1973 the group acquired Lamborghini Trattori in Italy. Lamborghini, though well-known for its performance cars, began its business by manufacturing tractors. Six years later SAME acquired the Swiss company Hürlimann. In 1995 it acquired DEUTZFAHR from Germany and became SAME DEUTZ-FAHR. In the following year it established SAME DEUTZ-FAHR India, initially as a 50:50 joint venture with Greaves. In 2002 it became the wholly-owned subsidiary of the Italian company. In 2005 it established SAME DEUTZ-FAHR Croatia for the production of combine harvesters and in 2011 it acquired Grégoire in France that makes grape and olives harvesters. These initiatives completed the spectrum for SAME DEUTZ-FAHR in catering to the agricultural requirements. As China has been a growing market, the global company

established a 50:50 joint venture with Changlin in China in 2011. It began to make tractors from the old factory of its JV partner. However, it set up a greenfield factory which became operational from June 2014, making SH and DEUTZ-FAHR brands. It also established SAME DEUTZFAHR TraktorSanayiveTicaret A.S in Turkey. About 95 percent of the tractors produced are for theTurkish market. At present SAME DEUTZFAHR has only a few brands to address the specific markets. While SAME is positioned as value for money targeting Mediterranean markets with low and medium power tractors, DEUTZ-FAHR is a premium brand for the global market offering full line of products. LamborginiTrattorioffers hightech and high- performance products focused on Mediterranean markets. Lamborghini GreenPromeets complete equipment requirements of professional gardeners. Grégoire is for grape and olive harvesters and sprayers while FARMotion is the brand for engines designed for tractor applications in the range of 65-136 hp in three and four cylinder configurations. Being a historical brand of Swiss tradition, Hürlimann is confined to the traditional turf. The SH brand, positioned as value for money, has medium-to-low power tractors for China and developing countries.

INTERVIEW

Revamp,

Modernise Eco-system For Automotive Industry The government, through the Automotive Mission Plan (AMP2026), has set very ambitious targets for the Indian industry. The newly-elected President of Society of Indian Automobile Manufacturers (SIAM) Vinod Dasari views the AMP as a vision for the industry to do its best. In an exclusive interview to T Murrali of AutoParts Asia, Dasari said “AMP will provide us not only the direction, but also the policy support in times of need”. The automotive industry is the key driver of economic growth for the country. There is already an eco-system for that. But it needs to be revamped and modernised.

28 | AutoPartsAsia | DEC’ 15 / JAN’ 16

: It is almost three months since you have taken over as the President of the Society of Indian Automobile Manufacturers Association (SIAM). The recently- announced AMP 2026 has set several targets, mainly to position the Indianautomotive industry among the top three in the world by 2026. What is your view on this? Dasari: These really are not targets. They are the potential that we can achieve if everything goes well. This potential has been calculated after detailed econometric modelling by ICRA,the knowledge partner for the Ministry of Heavy Industries. We know that this is a ten-year plan and we can only lay down a vision and try our best to achieve it. As always, there could be fluctuations in industry prospects due to external factors during this period. AMP will provide us not only the direction, but also the policy support in times of need. Q. What is the possible policy support, you think, will be in place to carry out this10-year plan. Your term is significant as it will set the long-term action plan. What are the indications? Dasari: The Plan will need to be multi-faceted. It has to

be combination of industry and Government actions complementing each other. While Government is expected to create a stable and conducive policy environment, industry will need to match up with investments, technology development and bringing in better and relevant products in the market. For the policy support, the Minister for Road Transport and Highways, Nitin Gadkari, has announced that his Ministry is setting up a separate Department of Transport which will address the issues pertaining to the automotive sector. This is a good move and should give a fillip to the complex task of formulating technical regulations that require a strong domain knowledge and technical expertise. The National Automotive Board being set up by the Ministry of Heavy Industries is designed to address new initiatives like the electric and hybrid movement and other new areas of technology development etc. The new Road Safety Bill, once passed, will also bring about another transformation. Hence, the indications on the policy front are quite positive and encouraging. Q. In this context what would be the priorities of SIAM, and your focus

areas? Dasari: The priorities of SIAM are the long- term ones set up by the Executive Committee and need to be continued with adaptations to the changing scenarios. Our focus on industry development and growth will remain the key motivating factors. In recent times, we have seen a stronger emphasis on sustainability, emissions, safety etc. We have to address these issues to mitigate the adverse impact on environment, reduce congestion and ensure road safety. Similarly, energy security is becoming a national priority. SIAM will play a constructive role in improving fuel efficiency of vehicles, including heavy vehicles, in tune with the international practices in this area. Under the banner of SIAM, we do follow some voluntary code of conduct like declaration of fuel efficiency in passenger cars, vehicle recall etc. I would like to extend and introduce such voluntary discipline in other areas also. I also feel that the automotive industry has been wrongly targeted in many ways because of which the image of the industry has suffered over the last few months. There is need for us to carry out a coordinated image-building AutoPartsAsia | DECâ&#x20AC;&#x2122; 15 / JANâ&#x20AC;&#x2122; 16 | 29

INTERVIEW

exercise to create awareness and inform people about the many positives of the industry. Q. How do you propose to implement them? Dasari: SIAM is a body that operates through a process of internal consensus. This way, we get the buy-in of all the members to the various initiatives of SIAM so that the industry as a whole owns these initiatives. The various Councils and Groups of SIAM which have been recently re-constituted at the AGM held in September 2015 would spearhead these activities and bring them to the logical conclusion over the next few months. Q. Quality and safety are important features for the expansion of both the domestic and export markets, essential for meeting the AMP targets. How doyou propose to ensure these vital parameters; what do you plan to do? Dassri: Safety is basically a regulatory issue. We should not confuse this with exports. Every country has its own emission and safety regulations. When we export vehicles to different countries we ensure that these vehicles meet the mandatory regulations of those countries. We are capable of meeting these variations from country to country. When we make for the domestic market, we ensure that the vehicles comply with the domestic regulation. Depending on the segment in which the vehicle falls, manufacturers also offer higher safety and comfort features than what is mandatory. That is purely market-driven. 30 | AutoPartsAsia | DEC’ 15 / JAN’ 16

The important thing about safety features is that all such features used in developed countries may not be relevant for India. Many of these have to be adapted to suit Indian conditions, while some of them may not find any relevance in India. This is one area where copy-paste does not work. We need to design our own safety solutions looking at the way consumers use vehicles in India, road and load conditions etc. If we seriously want to do this as compared to just copying from other countries, we will have to develop first our own expertise in doing costbenefit studies and impact analysis studies to work out the best solutions for Indian conditions. Otherwise, as a nation, we would be putting in a lot of resources for suboptimal benefits in the area of safety. Q. In India, affordability is as important as safety. Is not ‘affordable mobility’ a myth as ‘affordability’ is dynamic? How do you want to proceed on this aspect? Dasari: Let us understand that we have become the sixth largest car market in the world at a per-capita income which is still a fraction of the per-capita incomes in the first five car markets of the world. This is a great achievement and it has been possible only because our industry provides affordable mobility solutions to the masses. So, I would say that affordable mobility is crucial if we want to achieve the vision of the AMP. I agree that affordability is dynamic and the concept of affordability is also evolving

with increasing purchasing power. However, total lifecycle cost will remain as one of the most important factor in the purchase decision in future also. If you look at commercial vehicles industry, the purchase decisions are based on commercial viability and operational cost that maximises profitability for the operator. Hence, I would never undermine the importance of ‘affordability’. Q. Job creation and contribution to GDP are important for sustaining and expanding ‘affordability’. But both are very challenging without proper eco-system. What will be your role in creating or strengthening the eco system? Dasari: Today, the automotive industry contributes more than 45 percent of Manufacturing GDP, 27 percent of Industrial GDP and about seven percent of overall GDP of the country. It remains the key driver of economic growth for the country. It is not that we do not have an eco-system. The ecosystem is already there, but needs to be revamped and modernised. SIAM has taken proactive steps to provide skill development and to create a large pool of manpower that can support the future growth of the industry. The Automotive Skills Development Council set up jointly by SIAM, ACMA, FADA and NSDC with the support of the Ministry of Heavy Industry has been the first sector-skill council in the country and is playing a highly supportive role in imparting the right kind of skills required by

INTERVIEW

the industry. The ASDC operates through an intensive involvement of the automotive companies in developing curricula and occupational standards for people to be employed at different levels in the companies, dealerships, service stations etc. Q. In order to support this skill development process do you think the present labour laws need amendments? Do you have some suggestions to make them more pragmatic? Dasari: Our labour laws are archaic and need to be revamped over time. Some minor changes, like employment of women etc., have been made over the last one year and they are welcome changes. However, the key amendments required are to allow industry to adjust the workforce based on market conditions. If this flexibility is not given to industry, permanent labour will always be much less and temporary and casual labour will always be higher, which is not in the interest of the workers themselves. Even if the management has the right to dismiss a limited number of workers on grounds of indiscipline, it will go a long way in ensuring basic discipline in the entire workforce. There can be many more such amendments that are required. Q. Two editions of AMP, good GDP growth rates, skill development and labour law changes etc. are good for the industry. But real growth for the automotive industry will come about only with increased motorisation. What do you think SIAM 32 | AutoPartsAsia | DECâ&#x20AC;&#x2122; 15 / JANâ&#x20AC;&#x2122; 16

can do to raise the rate of motorisation? Dasari: Yes, the motorisation rate in India as a whole is quite low, at around 20 per 1000 as compared to over 500 per 1000 in the developed countries. This only reveals the huge headroom for growth of the automotive industry in thecountry. However, if we look at the large cities like Delhi, Mumbai etc., the motorisation rate is much higher at around 125 per thousand. So, firstly, the large gap between the motorisation in the large urban centres and the non-urban areas has to be bridged. The Industry is now focussing on covering the non-urban areas more effectively. In fact, almost 50 percent of the demand for twowheelers is coming from the rural markets. As availability of bank finance becomes easier and more widespread, I am sure that the demand for motorised vehicles in the rural and non-urban centres will increase and this will accelerate the overall motorisation rate in the country. Q. Infrastructure can be an issue preventing this acceleration? Whatâ&#x20AC;&#x2122;s your answer for that? Dasari: You are correct. Inadequate infrastructure has been one of the foremost reasons for the low motorisation rate in India. However, infrastructure development is now taking place at a faster pace. With the completion of the Golden Quadrilateral and the East West Corridor and the many more recent schemes to develop rural connectivity, motorisation will definitely

get a boost. Nowhere in the world have roads come up before vehicles. Road development usually follows vehicle usage and the same is happening in India. Q. Increased motorisation and better roads will expand the domestic market for the automotives. Will the Free Trade Agreements (FTAs), especially the proposed FTA with the European Union, be a challenge? What kind of deterrent Indian automotive industry needs to have to safeguard from such assaults? Dasari: In all the previous FTAs, free trade in completely-built units of vehicles has not been allowed. Vehicles have remained in the negative list. It is only with the EU BTIA that European Union is insisting on including trade in fully-built vehicles. SIAM view is that like in the past, we should keep out CBUs from the list for duty reduction under FTA. Q. Like FTA, the impact of the automotive emissions, the greenhouse gases, on environment is a challenge. The matured markets that were largely responsible for the greenhouse gases are now driving emerging markets including India to embrace sustainable technologies, while they are only emerging in the automotive space. What is your take on this? How do you think this will evolve in the future? Do you see an opportunity in this challenge? Dasari: Burning of fossil fuels of any kind results in environmental pollution and emission of greenhouse gases. Vehicles are no

exception. Every country, whether it is developing or developed needs to consider how best to minimise the environmental impact of all polluting activity. Vehicles are not the biggest source of pollution as per official studies. Nevertheless, the automotive industry has established a roadmap for reducing emissions and improving fuel efficiency. This will directly reduce CO2 which is a greenhouse gas. As far as emissions are concerned, we have a clear plan to move to BS 4 level of emissions by 2017. We are also awaiting the Government decision to bring in BS 5 in 2019 and BS 6 in 2023. As far as the greenhouse gas CO2 is concerned, this is directly linked to the fuel efficiency of vehicles. The industry has been voluntarily bringing major technological advancements in vehicles to improve fuel consumption as this is also the most important selection criteria for the Indian consumers. The Government has also come out with a mandatory Fuel Efficiency Standard which will demand that the OEMs improve their fuel consumption on an overall fleet basis like what is being followed in EU and other developing countries. As we go along, we will see more use of alternative fuels and drivetrains like electrics, hybrids, bio-fuels, etc. in all segments of vehicles. India is also following its own hydrogen initiative and I am sure that state-of-theart technologies like fuel cells which are still under development will take root much faster in India. Q. While the present

government is campaigning for Make in India, SIAM has been instrumental in creating manufacturing facilities. The need of the hour, I think, is ‘creation and invention’, in which India is far behind. The country is the worst performer among BRICS nations.What is your view? What are the impediments and how can we go beyond the just ‘Make in India’ campaign? Dasari: The Automotive Sector in India is a living example of ‘Make in India’. The Automotive Industry and SIAM have, over the years, supported policies that encourage local valueaddition and indigenisation of automotive products, may it be vehicles or auto parts. We strongly believe that the automotive industry has huge employment potential, especially in the non-urban and rural sectors. But this can be achieved only with local value-addition and enhancement of the manufacturing activity. At the same time, I think, the automotive industry has also been a leader in innovation and creation of new solutions for the Indian consumers. We are perhaps the only country that has designed and manufactured small commercial vehicles of less than one tonne capacity. This is purely an Indian transport solution based on local needs and consumer demand. In fact, the automotive industry actually created this new segment that did not exist anywhere else in the world. There have been other innovations like the low- cost passenger car. Moreover, the cost of development a new vehicle platform in

India is perhaps the lowest in the world. All these put India in a unique position in design and development of new platforms and mobility solutions for the world. Q. Finally, the ‘Endof-Life’vehicles. The automotive industry is not seeing light at the end of the tunnel for ‘End- of- Life’ vehicle. Though there are talks about some action plans by the Ministry of Road Transport, what is your take on this and when canwe see the light? Dasari: End -of- life is not a new concept. It exists all over the developed world and guides the consumer’s decision on when to scrap the vehicle and invest in a new one. World over, this is done through a wellestablished Inspection and Certification mechanism under which all vehicles have to undergo an annual fitness test at an I&C Centre. If the vehicle fails, the owner either gets the vehicle repaired to meet the test or decides to discard the vehicle and purchase a new one. In that case, the vehicle goes to a scrapyard where it is dismantled and the residual material recovered by various processes. In addition to this I&C mechanism which is a regular process, many countries have also implemented schemes like ‘cash-for-clunkers’, under which any person scrapping an old vehicle can avail of Government incentive when a new vehicle is purchased. Such schemes can accelerate the scraping of old vehicles and can help in cleansing the roads of old vehicles in a short period. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 33

SUPPLY CHAIN

Spear Spearheads Logistics Service Infrastructure Modernisation The growing economy and the building of dedicated freight corridors and other mobility networks are expected to fuel the growth of the Indian logistics industry. The slow progress of the infrastructure projects, poor transportation modes, prolonged stoppages and fragmentations are among the problems that hinder the growth of this industry in India, Captain Uday Palsule, Managing Director, and Gautam Dembla, CEO, Spear Logistics Pvt. Ltd., told AutoParts Asia. Handling over five million transactions in about 2.6 million sq. ft. of warehouse space across India, Spear is a leading provider of competent logistics solutions to diverse industry segments. In an exclusive interview they spoke about the steps the company has been taking to face the challenges and tap the opportunities in the industry through the logistics service infrastructure modernisation. Edited excerpts: By Sharad Matade

: Do you think the logistics infrastructure development has been able to keep pace with India’s economic growth and globalisation of trade? Capt. Palsule: India has been able to flex its economic muscle in the recent years. Still it has much catching-up to do with logistics service infrastructure. Expanding trade volumes have forced transportation to move forward rapidly. Regulatory systems and road and rail network have not kept pace causing bottlenecks in the supply chain. Planning and implementation of Sagarmala project will be a vital step in improving the road and rail network’s access to harbours and airports. Improving Inland waterways is an interesting development and has great potential although it will benefit only in the longterm.

34 | AutoPartsAsia | DEC’ 15 / JAN’ 16

Q: What are the major challenges in all the three modes, road, air and water transportation, in logistics business? Gautam Dembla: In India, there are challenges in all modes of logistics. Roads: Quality of roads and network connectivity are poor. Regulatory framework requiring stoppage of vehicles at State border check posts is a major cause of delay. It is estimated that 40 percent of the time lost are due to these stoppages. Road transport business

up-gradation of cargo handling processes and performance- based service. Ports and inland waterways: Cabotage has to be relaxed and coastal shipping needs a lot of work and great deal of encouragement. There are inefficiencies in berthing and delays in loading and unloading, resulting in high turnaround time of vessels, and delays in co-ordination between ports and the Customs authorities. Hinterland connectivity is poor. Port and land-side infrastructure is inadequate

warehouse in every State to reduce Central Sales Tax (CST). Freight cost is very high mainly due to smaller size vehicles (9T) and slower highway speed (Average 30KMph). Check posts and city entry points make

the situation still worse. Truck delays average five-to-seven hours at inter-State checkpoints. Fragmented ownership also complicates insurance structure. Damage to cargo due to unequipped handling and improper loading is very high. requires stricter regulation. Many of the small and unorganised players, with no industry consolidation, offer intense competition. It is difficult to accrue return load synergies in the current scenario. Another challenge is that the concept, `larger the vehicle, cheaper the freight rate’, does not work in India due to various reasons. Air logistics: There are lack of integrated cargo infrastructure and inadequacies in gateway and hinterland connectivity through rail and road. There is a need for streamlining the Customs procedures in air cargo, technological

and the equipments are outdated. Navigation channel restrictions do not allow bigger vessels to be berthed. Inland waterways is an industry that needs to be built up. Q: Many multinational companies are coming to India owing to low production cost. However, logistics services add substantially to the cost of production in India unlike in countries like the US and China. Could you explain the reasons for this? Capt. Palsule: One of the biggest components is inventory size, as is demanded by the regulatory framework. It requires at least one

Q: Does the fragmented and unorganised logistics segment in India hamper the growth prospects of the industry as a whole? Gautam Dembla: The fragmented or the unorganised nature of India’s logistics segment does affect the growth prospects of the industry and logistic companies to a certain extent. However GST will score over the existing regime in the transportation and logistics industry, where a tendency is seen to engage with the unorganised players for tax considerations. The GST regime will see the emergence of the organised service providers since taxes will no longer be added to the

costs for the businesses. Implementation of GST is expected to unleash a plethora of opportunities for companies in the organised sector. Further, the firms in the unorganised sector also would be expected to

improve their service levels if they intend to grow successfully in the likely shape-up or shape-out competitive landscape. The post-GST regime may offer many more unforeseen opportunities for the unorganised entities to tie up or collaborate with established companies. This could ultimately result in a win-win scenario for both the collaborating parties and the industry at large. Q: Do you see consolidation happening in the industry? Capt. Palsule: With the encouraging initiatives by the government, such as the anticipated roll-out of GST and the creation of increasingly favourable business climate, one could expect additional players in the logistics space emerging and quite a few international companies entering India leading to intense competition. And with high quality of service and delivery becoming AutoPartsAsia | DEC’ 15 / JAN’ 16 | 35

SUPPLY CHAIN the topmost priority, consolidation is very much possible. Q: Does Spear Logistics have a special focus on modernisation of technology to be an industry leader, improve business and face competition from new players? Gautam Dembla: Technology definitely has a major role to play in the logistics sector. Right use

of technology enables seamless operations and efficient functioning of logistic companies. Saving of time and money ultimately helps in improving the financial health of a company. Spear is a technologydriven company and has invested heavily on the latest IT systems and technology. WMS (Warehouse Management system), TMS (Transport Management System) and Dashboard are used to streamline

operational processes. SQL (Programming Language for Data base management) forms the database for our WMS. CRM helps our sales backbone and POMs (Purchase Order Management Software), Company roll and Oracle Financials help our corporate backdrop. We use Webex as our TMS and offer POD (Proof of delivery) visibility to our clients and also to measure

delivery performance. Spear has its own proprietary WMS which can perform all basic warehousing activities. We understand that every customer has a unique requirement and WMS might require customisation. Our WMS is smart and flexible enough to accommodate customisation to suit customer requirements. Spear WMS has proven barcode capability and has wired and wireless scanner support for binning, picking and packing process and

system rule-driven space allocation for put away. It helps seamless information and material flow which the customer can track remotely. Q: What is the role of automation in your modernisation programme? Gautam Dembla: Spear uses mechanised material handling and storage equipment at various warehouses based on customer requirements. The number of MHE in each of the warehouse depends on the type of material and storage (i.e. rack, shelve, bin, ground, mezzanine) and depends on customer requirements. We use various automated conveyors which help faster material movement within the warehouse. We also use customised WMS for facilitating faster picking and processing of orders at various points. We are also using modern tools in the packing operations within the warehouse, in the form of automated pouch packing, MRP labelling, shrink wrapping machines, pallet wrap machine , box stretch wrap machine etc. Q: What are the steps being taken to understand the customer’s business needs and customisation of services? Capt. Palsule: I would

36 | AutoPartsAsia | DEC’ 15 / JAN’ 16

like to explain here by providing an example of one of our clients. A large e-commerce player in the country was in need of very robust supply chain for its rapidly expanding business. It had to remain consistently high on inventory accuracy and short cycle-time that will lead to faster order processing and in turn faster deliveries to endcustomers. To achieve this it was necessary to have completely system-driven operations and warehouse workforce to work in sync with operational processes. The operations were varied across Apparels, shoes to large variety of electronic goods. There was a definite need of a reliable service provider who can offer consistent and efficient services. Spear did a thorough study of the processes, made meticulous planning and deployed dedicated teams for different product operations to increase product familiarity and operational efficiency. Efficient warehouse layout and best warehouse practices like wave picking were deployed to reduce cycle-time and increase accuracy. Comprehensive system training was given to staff to increase process adherence to 100 percent. Cross pollination of best

SUPPLY CHAIN huge market with immense opportunities. Our focus is currently India and we would like to grow stronger and bigger in India providing quality service to our clients with continuous service infrastructure modernisation and process improvements. Q: How do you assess the prospects of the Indian Logistics industry? Gautam Dembla: practices across sites through staff sharing and transfers was adopted. The Spear team deployed efficient processes and ensured 100 percent process adherence. The team supported lean operations with lower inventory in the warehouse. By providing increased accuracy and faster processing, Spear enabled enhanced customer service and customer satisfaction. Q: E-commerce business is growing very fast in India. What does Spear Logistics do to tap this opportunity? Capt. Palsule: Spear is present in almost all major industry segments. E-commerce is one of them. We viewed the changing industrial dynamics and broadened our customer basket to include e- commerce as we found a big opportunity there. We are managing two fulfilment centres, four packaging warehouses and a liquidation centre for one of our big clients in the e-commerce space. They were looking for cost synergies through effective layout and use of mechanized MHEs, crashed time for order processing and faster turnaround. Q: What are the sectors/ industries that contribute the maximum to the 38 | AutoPartsAsia | DEC’ 15 / JAN’ 16

revenue of Spear Logistics? Gautam Dembla: Spear is present across all major industry verticals. Most of our clients are market leaders in the respective industry segment. Spear has strategically focused on engineering and automotive sectors seeing the vast potential for contract logistics service provider. However since last year we have been focussing equally on industries like e-commerce and pharma. The results are quite encouraging. We have added many new clients from these industry segments. It helped us diversify our client portfolio. However, automotive and engineering clients still contribute around 55 per cent of the overall revenue. Q: What are the company’s future plans and which will be the focus areas? Capt. Palsule: We are looking at various new products in warehousing. Recently we have set up multiuser facilities in Bhiwandi and Delhi. We have already strengthened our distribution division which will contribute to our skill sets and topline considerably. Q: Does Spear Logistics have any plan to expand overseas? Gautam Dembla: India is a

According to a report by Frost & Sullivan, the logistics sector in India is currently pegged between (US) $90 billion and $125 billion. It is a priority area and is expected to reach $150 – 160 billion by 2020. Years of high growth in the Indian economy has resulted in large volumes of traffic, thereby providing opportunities in areas such as transportation, warehousing, freight forwarding, express cargo, container and shipping services and others. There is room for growth in the country’s logistics industry especially in contract logistics as market penetration of the niche segment is still low at around 15 percent. In developed nations it is 3035 percent. Contract logistics includes

planning, implementation, and control of a logistics system under a contract. The major scope of works include receipt of goods into a warehouse, quality control, order receipt, order picking or packing, distribution, efficient raw material procurement and storage among many others. Q: What steps/ changes are needed to be taken by the Government to boost

the logistics industry? Capt. Palsule: India’s logistics sector is already witnessing accelerated growth, led by GDP revival, ramp up in transport infrastructure, e-commerce penetration. GST implementation and other initiatives like ‘Make in India’ will offer further opportunities. However, we need to wait and watch as to when will these new initiatives and announcements made by the Government will actually be implemented on the ground and how exactly will they benefit the industry. GST is still the change the logistics industry is eagerly awaiting, as the positive impact of GST far outweighs the disadvantages of this industry.

COVER STORY

US, China

To Propel Automotive Aftermarket

40 | AutoPartsAsia | DEC’ 15 / JAN’ 16

Aftermarket is always a lucrative and growth-oriented segment. The automotive aftermarket in no way is behind other sectors since transportation is the wheel of any national economy. Next to food, clothes and shelter is mobility. People want to move around and so transportation is considered to be the fourth necessity, and an essential part of the base structure. The aftermarket activity is more vibrant than that of the Original Equipment (OE) market. The global automotive aftermarket is expected to grow three to five percent in the next five years. It will be driven by the US, which might witness three percent growth in three years, and China, which is estimated to grow 16 percent to US$229 billion by 2019. There are several factors that propel the aftermarket growth and also impediments that create roadblocks. By T Murrali

lobally automotive aftermarket is estimated to be worth about US$477 billion. More than half of this, $250 billion, is in the US. In Canada it is C$ 19.4 billion and in Australia AU$ 5.2 billion. In India the aftermarket is estimated at around US$5 billion. The world automotive industry grows by striking a balance between the OE market and the aftermarket. In India, the aftermarket seems to have an upperhand because:•

India has the largest number of two-wheelers on road and the number is always on the rise

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Each two-wheeler on road creates one new job outside the manufacturing arena.

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India has only 18 cars for1000 people and therefore, there is very big potential for increase in the number of cars in use.

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The number of the commercial vehicles and off-road engines also are going up.

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Every car and heavy commercial vehicle creates five and 13 indirect jobs respectively, for their repair, maintenance and servicing.

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The absence of ‘end of life’ regulation, which stipulates a time-frame for the vehicles to get scrapped.

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Vehicles, largely passenger and commercial vehicles, change hands several times until they are beyond repair.

This huge vehicle marketwith immense growth

opportunity, both for OEMs and after-sales, is the main reason for the global players to establish their presence in India. Growing vehicle parc the world over will catalyse the aftermarket growth. At present over one billion cars and 300 million commercial vehicles are plying on the roads. By 2050, the number of the passenger vehicles is expected to grow by a factor of 2.5, while that of the commercial vehicle is set to double. The demand in the developed markets will be moderate. It will be offset by the growth in the emerging markets that continue to

AutoPartsAsia | DEC’ 15 / JAN’ 16 | 41

COVER STORY

grow in the OE and aftermarket segments.

will enter the market in the next 10 years.

Key Markets

A robust infrastructure has triggered growth in the surface transport of people and goods, both fuelling growth of the automotive aftermarket. Today China has 300 cities with a population of over one million. But for the recent currency fluctuations, the growth would have been phenomenal, according to industry observers.

The global automotive aftermarket is expected to grow three to five percent in the next five years. It will be primarily driven by the US which may witness three percent growth over the next three years and China, which is estimated to grow 16 percent to US$229 billion by 2019. In the US over 38 million cars had hit the roads since January 2013. The vehicle parc will get an additional 10 million in the next three years. Dipping unemployment rate and slumping fuel prices trigger the vehicle population increase. According to David Portalatin, the industry analyst for the NPD Group’s automotive aftermarket division, the three factors that influenced the US aftermarket in 2014 were increased miles driven, retail fuel price and Car Purchase Index (CPI) coupled with the growth of used cars. The first two factors were predominant. While the aftermarket was forecast to grow in 2015, the miles driven seem to exceed calculations. Despite 4.1 percent increase in fuel demand in 2014 the miles-driven factor rose only 1.8 percent. It is expected to increase by 3.3 percent in the current year and 1.9 percent in 2016. China, the second largest economy, next to the US, continues to be the number one auto producer in the world. Its economy has been growing and more than 300 million people have moved out of poverty in the last 25 years. According to Steven H Ganster, Managing Director, Technomic Asia, more than 150 million new urban middle class 42 | AutoPartsAsia | DEC’ 15 / JAN’ 16

China has always been described as a complex market. And this is more so with the growth projections. While the future growth of light passenger vehicle registration is expected to dip to single digits by 2019, reaching an estimated 23.6 million units, the MPVs and SUVs will continue to outpace sedan growth. While the light vehicle will witness a CAGR of two percent in the next four years, the MPV will see 11 percent and the SUVs 12 percent. SUVs will rise to garner 37 percent share of the market. By growing 13 percent CAGR in the next four years, China’s passenger vehicle parc is expected to close gap with the US, reaching 221 million units. This will propel the aftermarket growth. Technomic Asia estimates that the vehicles in China continue to age. In 2014 the one to three years old vehicle accounted for 44 percent, four to nine years 44 percent and over nine years 12 percent. By 2019 these will be 33 percent, 47 percent and 20 percent, respectively. The parts and service market for light passenger vehicles that accounted for $109 billion in 2014 is expected to grow at 16 percent CAGR to $229 billion. In the US the aftermarket growth will

be in a different track as the present day customers define ‘value’ more than just price. For them material quality and fuel economy of the vehicle are as important as the performance of the engine. This shift in priority will be reflected in the aftermarket as well. The endconsumers are opting for premium value, be it premium wiper blades, engine oil, filters or high intensity discharge capsules and blubs. This segment of value-oriented customers are expected to increase 15 percent.

Growth Drivers Aftermarket or the replacement market is the secondary market that supplies spare parts and accessories to individuals and the service centres. The spare parts and accessories are mostly manufactured by the same companies that supply to the vehicle manufacturers. However, they route them through different channels such as wholesale distributors and retailers to reach the end customers. Growth of the aftermarket depends on various factors including the rise in sales of vehicles, universally applicable parts, ‘Do It Yoursef’ (DIY), ‘Do it for Me’ (DIFM), online marketing, authorised sand thirdparty multi-brand service centres and remanufacturing. According to the Automotive Aftermarket Suppliers Association

Autocare Association represents manufacturers, distributors and retailers of auto parts which is the traditional aftermarket classified as auto-care industry.

(AASA) in the US, DIFM has a dramatic 74 percent share of all aftermarket product volume. By 2025, DIFM will grow by about $14 billion and represent 78 percent of all aftermarket product volume. The traditional DIY market will lose share. One quarter of the DIYers are considering used car purchase in 2016. Customers are purchasing cars that are already 10 years old, triggering the aftermarket growth. Listing out the key drivers for the growth of aftermarket, Mark Seng, Global Aftermarket Practice Leader, IHS Automotive, said, the new vehicle sales are going through the roof around the world. More vehicles to repair drives the aftermarket business. “Some people would say that it’s bad for the aftermarket. But anytime you add vehicles to the fleet, it’s a good thing for the repair business, it’s the future pipeline. Thevehicles in Operation(VIO) around the world will increase. Vehicles are getting older worldwide as they last longer. That is good news for the aftermarket. More vehicles for repair and more repairs onthem, create more aftermarket business,” he said. According to Andres Castrillon – Senior Counsel for International Affairs, Autocare Association,the key drivers for growth of automotive aftermarket in the US are the falling gasoline prices and increasing miles-driven. The US-based

The US economy has been struggling over the last several years. People have been keeping their cars longer. The average age of the vehicle on the road continues to increase (the average car runs for about 11.5 years in the US) and the aftermarket is outpacing the US economy. “We are still a society largely reliant on our vehicles; some cities have good transportation system but in the major part of the country, vehicle is the king. Motorisation is very high, 685 or 700 per thousand people; it’s a $320 billion industry, bigger than agriculture. We expect that to continue,” he said.

Universal Parts OEMs are moving more towards the big, mega-platforms so more and more vehicles are going to be made on fewer platforms. In the aftermarkets there is going to be more vehicles where parts can be the same around the world. The component suppliers should be able to leverage this to their advantage by the standardisation of platforms for higher volumes and margins. Seng said thatthe component manufacturers can find new markets for parts they are already selling in one part of the world. From the information on the product they can find the vehicles in other parts of the world that have the same parts. These can be done by matching key attributes of vehicles like engine size, model, sub-model etc.

Aspirational Products The aftermarket plays a key role not only in maintaining the vehicles but also in catering to aspirations of individuals to modify them according to their preferences and taste. There are parts and accessories that one does not need but want it. Asked if the performance enhancement products in the aftermarket drive OEMs to resort to newer technologies, Seng said, “Certainly, but it’s a kind of push and pull. As consumers want to tune their vehicles and add performance items, appearance items and things like that, their preferences are valuable to the OEMs. As the OEMs add new technologies to drive the performance market, it increases their ability to add aftermarket-type parts and aspects to those different items as well.” Sharing his views Castrillon said, the aftermarket has the opportunity to replicate the original part and to improve on it. There’s a certain amount of transactions between the OEMs and some of the traditional, exclusive aftermarket suppliers. The OEMs look at what improvements and performance enhancing solutions the aftermarket has come up with and offer them in their new products to begin with. They will not lose business to some of the suppliers that push innovation levels on the aftermarket side. It’s a symbiotic relationship.

Recession-Proof The aftermarket is becoming more of a compulsion than an option for the component suppliers because it can withstand the economic cycle and market upheavals. Seng says, “We expect the world vehicle population to grow 27 percent AutoPartsAsia | DEC’ 15 / JAN’ 16 | 43

COVER STORY

over the next five to six years. For a parts suppliernot to look at the potential of the aftermarket is not practical. There is a huge potential for growth with high margins in the aftermarket, which is much more than what they would get from supplies to OEMs. It’s a compulsion for all parts suppliers to be looking at.” Castrillon views the aftermarket as a big part of the overall automotive industry that, “I think it becomes a compulsion. From an emerging markets perspective, largely driven by the middle-class where a large slice of people go into the secondary car market, the growth opportunities will be in the aftermarket because the used car population is really going to explode as the middle-class emerges.” The automotive aftermarket is also recession-proof. Seng says, “If you are selling to the OEM only, you are selling the part to the new vehicle. In the aftermarket you can sell that part two or three more times. This holds good for any market in the world,” he said. Castrillon says, “That’s the point. We always say that the aftermarket is recession-proof. When new vehicle sales are up, we still do well because eventually those cars are going to get old. When the economy is not doing well, people don’t buy new cars; they just maintain their car, which helps the aftermarket. So I think we are one of the most recession-proof 44 | AutoPartsAsia | DEC’ 15 / JAN’ 16

industries out there.”

Online Marketing Off late the online sales channel is picking up eliminating the distributors and retailers from the value chain.Amazon.com and eBay Motors are the largest online retailers of aftermarket parts and accessories in the US by both units sold and revenue. Sales are expected to grow 25 percent in 2014, far outstripping traditional chain stores. As DIY parts sales soften at the retail counter, chain stores like Advance Auto Parts, AutoZone and O’Reilly are driving to the DIFM commercial business, eating into distributors’ and jobbers’ market share. Since 2007, DIY sales at the chain stores have fallen three to five percent, while commercial sales have brought in a double-digit sales increase. AutoZone’s DIFM sales in 2013 alone increased over 13 percent. The popularity of other large online car part stores such as CARiD, AutoAnything, Pep Boys continuously grows, helping them to achieve the highest positions in this market segment.The factors that influenced the US aftermarket in 2014 will continue to 2016 too.

Authorised Service Authorised service centres of the OEMs and independent or unorganised service centres with established supply chain are becoming more popular in the developed and emerging markets. The emerging markets,

including India, have the authorised service centres operated by the dealers. There are also third party independent multi-brand and unorganised service centres. In North America the independents are mushrooming. They get almost 70 percent of the aftermarket repair business. The service cost of a next-door independent service centre is 30 percent less than that of an authorised dealer after the warranty period. People have also to travel long distance to reach an authorised service station. With 270 million vehicles on the road, the authorised dealer channel doesn’t have the capacity to service all of them. The situation is similar in the emerging markets also. The North American market is different from that of the developing economies on many counts. Castrillon said: “We have probably the most sophisticated distribution channel in the world. We have hub-and-spoke distribution (large distributors) who supply to smaller regional distributors who in turn supply to independent repair shops. Often it’s hard to understand the supply chain as to how parts get to the market. Distribution looks a lot different; maybe there is one large distributor, maybe there are none”. The emerging markets are dealerdominated. Most of the vehicle owners go to the dealer as there are not many independent service shops. For the ones that do exist,

it’s more like a black-market type of operation. You are not sure if the products are authentic.In the Central American markets a lot of distributors get their things from eBay and Amazon on a spot basis. “In all these markets where the middle-class is growing we see that the supply chain gets much more sophisticated and organised over time,” he said. The pros, according to Castrillon, are that the North American market is very professional. The cons are that a lot of companies are already established, a lot of the brands are already very well-known.It is difficult to tap into this market. The benefit of an emerging market is that it’s a blank slate. One can come in and try to establish market share. “In North American markets, to gain market share you really have to steal it from a very established player.” On the global aftermarket Seng said,“the key is that aftermarket companies need to figure out what is going on in those markets and they can use a tool to see what is happening to the vehicle population in the emerging markets, keeping an eye on the age of the fleet. This would help parts manufacturers and service providers to understand how these markets are evolving and growing”.

Roadblocks Ability to identify the right market, increasing free trade and tariff

concessions, the paradigm shift in the concept of after-sales service, the emergence of internet as a key player in consumer behaviour and decision-making, the menace of counterfeit and brand loyaltyetc. are among some of the impediments to the growth of the traditional automotive aftermarket. There are challenges, also opportunities. One of the major impediments tothe growth of aftermarket, according to Seng, is that people do not recognise where these markets are growing. A lot of them are still focused on mature markets. They should be looking at the emerging markets like India, Brazil, and China to sell more parts and grow their business. Several disruptive technologies are coming in for connected cars, autonomous vehicles etc. The aftermarket needs to be prepared for them. These new technologies may not be impediments now but may be so in the future. Castrillon views that the growth of the economy and increasing globalisation are different, “as many large markets are going for FTAs heralding more competition. It’s hard to set yourself apart. For example, the US has signed a multilateral FTA called `The Trans-Pacific Partnership’ with 12 countries on either side of the Pacific. They are going to trade goods at very low duties or dutyfree. The domestic industry had a competitive advantage before

because of the import duties”. “With a flood of imports coming in from other countries, they can now compete without paying those five to 15 percent import duties. So free trade is great from a consumer perspective but it increases competition and brings in more players making it difficult for you to set yourself apart. Companies just can’t compete on price anymore; they have to compete on quality, service, delivery, reliability, availability and brand awareness”, he said. On the role played by after-sales service, Seng said it depended on how the aftermarkets evolved. “China is trying to find its way. In India the aftermarket is evolving as we see OEMs compete more in the aftermarket than before. But the fact that the aftermarkets are growing so well will bring in results”. Castrillon said the after-sales service was a huge part of the success of any company in the aftermarket. “The traditional aftermarket suppliers need to have a great relationship with the distributors. They need to offer after-sales service, and a whole suite of products to educate people about the different solutions their parts and services offer so that people can identify the right parts at the right time. With the current technological advances, it’s not just about parts catalogues but about electronics standards, electronic cataloguing, quick parts AutoPartsAsia | DEC’ 15 / JAN’ 16 | 45

COVER STORY identification, and fast deliveries. A product now bets on things like internet-based services, how everything is accessible online, which is a whole new route for the industry. It’s an opportunity but it’s a challenge as well”, he said.

Over-riding OEMs In certain markets some of the OEMs do not permit their suppliers to enter and sell products in the aftermarket on their own. Their argument is that the technology, the part that they supply, is proprietary. However, according toCastrillon, “It’s not happening in the North American markets on the same level asin other places. There are some contractual

this industry but in all industries. It is difficult to quantify it in terms of value, which we think gets exaggerated a bit. The majority of the parts coming in are reliable, authentic parts. Sometimes there is a misconception that an aftermarket part is likely to be a counterfeit which is just not true. The majority of the aftermarket parts are totally legitimate. That said, we have taken a lot of steps to try to address the issue”. “A lot of the counterfeits are coming from large, emerging countries – China being a key example. Most of them are sold online stores. We have been asking the US government to

or partner to a Tier-1 supplier and sell under their brand. That is a decision every company has to make on its own. Emerging markets could give them that opportunity.” “Consolidation will happen in the aftermarket. It’s going on. It will impact the entire supply chain by being able to have many more efficient, large suppliers and manufacturers that they can service. That is where customers are going to benefit from large suppliers with their inventories,” he added. On the pros and cons for a parts supplier catering to OEMs and the aftermarket, Seng said, “If you supply parts to an OEM the plus point is very large quantities. You don’t have to carry a large inventory; you can make do with just-in-time. With the aftermarket your margins are much higher; however, you have to plan your inventory very carefully because you don’t know on a dayto-day basis what parts are going to fail in which vehicle. There is a much broader parts coverage that has to be managed to get the required margins.”

Conclusion

restrictions but there is no prevention for OEM suppliers to be active in the aftermarket. Sometimes you may not be able to sell under the same brand a product that was in the original car; you will have to call it differently. Most of our supplier members are active both with OEMs and the aftermarket” The Chinese government has recently passed a law prohibiting car manufacturers from implementing that kind of prohibition. It’s also a law in the statute book in Europe that prevents OEMs from signing those types of contracts.

Counterfeit Menace Aftermarket is besieged by counterfeit. This menace not only threatens the life of the end-users but also erodesrevenue to the exchequer. Castrillon said that “it certainly is a problem, not just in 46 | AutoPartsAsia | DEC’ 15 / JAN’ 16

talk to the Chinese counterparts to address some of these issues and the B2B online channels. Of course it’s very difficult to police online sites especially when a lot of them are in other markets. We have to build awareness; we have a large IP infrastructure and an IP policy to educate our members on what they can do ahead of time and we work with the regulators throughout the year”, he said.

Brand Loyalty The aftermarket depends on brand loyalty. Several large-size companies have their own aftermarket plan. It may be difficult for Tier-2 and Tier-3 suppliers as it would be very risky and expensive. Seeking solution for the smaller brands, Seng said, “I don’t have a silver bullet for this. The Tier-2 & 3 suppliers have to decide whether to go to market directly and build a brand or become a supplier

Automotive aftermarket suppliers need a 360° view to succeed in today’s changing market, Bill Long, President and COO, AASA, hasrecently said. Aftermarket is a large and stable industry segment and therefore, the players cannot be complacent. New channels of distribution and new markets offer opportunities. Innovation and differentiation are to be the key drivers for increased profits. Therefore, a new level of customer collaboration and differentiated services offer opportunities to suppliers. DIYs still represent growth opportunities if there is convergence of volume and value. Generational change will have a long range influence on the market. However, the big challenge is to reach the millennials who are multi-taskers with higher aspirational levels. Their numbers swell day by day creating opportunities for equally smart players. Photos Courtesy: Denso, Federal Mogul and Meritor.

AFTERMARKET

Madhus Garage Equipments Thrives On Quality

By T Murrali

he Bangalore-based Madhus Garage EquipmentsPvt. Ltd., is looking getting in to growth trajectory with the market responding to quality equipment in the aftersales sevice segment. The company that was started 25 years ago with wheel service equipments, deals with the latest range of garage equipments from Europe and the USthat handlenew generation hi-tech automotives.Madhus, true to its mission statement, bridges the technological gap between the advanced countries and India in garage equipments through partnerships with the world leaders in different segments. The company has wheel service equipment from Hunter, lifting equipment from Ravaglioli, Rotary and Hamecson, collision repair systems and welding equipment from Car-O-Liner, gas analyser from Capelec, brake maintenance service equipment from Romess, welding equipment from Telwin, A/c service systems from Texa, straightening systems from Josam and drive 48 | AutoPartsAsia | DEC’ 15 / JAN’ 16

impact wrench from Shirota. Madhus gets the latest from its principals in line with what they supply elsewhere in the world. Through its offices in almost all major cities in the countryit reaches its customers. These offices have qualified, trained and experienced personnel to take care of all service needs. The service Engineers are periodically trained by the principals to keep them abreast of the latest global developments in the Industry. “In the passenger car segment we do lifting equipment, alignment, balancing, tyrechangers, wheels service, air-conditioning service and brake service. In trucks it is mainly wheel service, and the future will be for brake testing. Crash repair comes under bodyshop for cars. For trucks it is still in the developmental stage”, Ravi BM, Managing Director, Madhus Garage Equipments Private Ltd,told AutoParts Asia. He said the company wasexpanded during 2013-14, which was a recession period for the automotive

industry. Madhus had to bear the brunt of the downtrend as it imported the entire range of equipment when dollar and euro werevalued 20 percent more than inthe previous years. The company lost out on expected growth in 2014-15. In rupee terms it lost sevem to eight percent of turnover. In terms of quantity the drop was substantial. “However, the good thing was that we built up the entire organization during that time; we increased our manpower from 125 to 200 in the last two years. We were always confident that the future market will need hi-tech equipment and high quality service. China flooded the market with cheap equipment and people went for that. But now people have burnt their fingers and are willing to buy from us. Everywhere we are getting positive vibes from the open market”, hesaid. Along with its global partnership and high quality equipment, the company took positive steps to educate its prospective customers who were

very price sensitive. “In order to change the customer mindset we opened a huge training centrecum-office in Noida, in January, 2014. We have been able to build up customer confidence by asking them to visit our office which has resulted in good business in the last one and a half years”, he said. Madhus hopes to have a turnover of overRs 80 crore in 2015-16 againstRs77 crore in 2012-13. “We are at the top of the pyramid with regard to quality, performance and cost. Our job has been to convince people that by investing a little extra they could get high returns,” Ravi said. TodayMadhus has equipment that can check the vehicle within one minute and give the customer the vehicle status report. “If alignment is required he will do it or will say that he will come back next time. That is how we are building relationships and customer loyalty. We give a lot of importance to service, that’s the only thing keeping us alive. Today, many manufacturers of cars are asking for quality equipment in their workshop, which is helping us”, he said. In recent times the welding equipmentshaveundergone drastic changes. Welding has moved from conventional principles to inverter welding and better quality welding options. The steels used in cars are much different from the earlier ones that normal welding equipment cannot be deployed. There has to be a powerful welder

with higher amperage.Madhus has been in tune with this latest trend, he said. Brake testing is going to be mandatory with new legislations coming in.“The parameters are very simple; take the car on a roller brake tester or a platform tester and brake the car to tests the braking efficiency.There are many companies focusing on this, building up base and getting ready to install thousands of machines in the coming years. This is going to be a big business in India,” Ravi said. Crash repair comes under bodyshop for cars. For trucks it is still in the developmental stage; the first few crash repair equipment for trucks has been set up by Scania and Volvo in Bangalore. Tata Motors and Ashok Leyland are now strongly looking into it. “Cab repair is a big business as nearly 50 percent of trucks now come with a built-in cabin. We see good opportunity here and are pursuing it right now”, he said. Special cab repair benches are available but everybody is hesitating on cost. With Diamler starting in a big way, people are now looking at cab repairs. In an accident, usually the cab gets damaged, not the chassis. In the wheels segment there is huge potential for truck alignment. “We started as pioneers for that and today we have about 80 percent share in the market. People are going for it because

radialisation has made a big difference. That is the key for wheels service. With speeds going up, control and tyre wear have become basic concerns for everybody. Today, we are selling wheel alignment everywhere across the country,” he said. More than the truckers the manufacturers are taking it seriously because the complaints are coming into their workshops. Fuel consumption could be affected if vehicle alignment is not done properly. Ashok Leyland and Tata Motors have made it mandatory for all their workshops to have an aligner. “So it is just a matter of time before everybody starts buying and using it”.

After-sales Service Regarding after-sales service, Ravi said the company has two service locations in Noida (Delhi) and Bangalore with about 80 engineers based across the country. “Every engineer is controlled and constantly monitored by these twocentres. We have given one single phone number to all our customers with which they can contact us any time of the day for all their service problems”, he said. Madhus has centralised spare parts business in Delhi and Bangalore. “If a part is required the engineer will inform the Customer Service Department (CSD) about the customer requirement and he will send an invoice to the customer on the same day and the next day the part is available to the customer. To resolve issues in big cities we take 24hrs, and for B towns 48hrs; for Ccentres it might go up to 72hrs. Along with the convenience, electronics brings lots of problems.A software issue can be sorted out remotely but for hardware “we will have to go there and do it”. “The cost of ownership for our customers is only two to two-anda-half percent a year, as compared to the industry average of 10-15 percent. We have been blessed with less service calls from our customers because of the good quality from the manufacturers we represent”, Ravi said. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 49

AFTERMARKET

Europart Middle East To Expand Business, Enter New Markets By T Murrali

uropart Middle East LLC, a 50:50 joint venture company between Europart International GmbH and Arabia Holdings, is expanding its business in South and SouthEast Asia.The company has recently commenced its business operations in India based in Chennai. Europart Germany is the biggest supplier of spare parts for all European-made trucks and trailers in Europe, especially in Germany. Arabia Holdings is owned and managed by P S MHabibullah from India and Sheikh Majid-al-Qaqasimi of Sharjah. Europart Middle East FZCO, which is in the Free Zone area, is part of this holding company. Europart Middle East LLC is in the mainland. Zabi A Khan, Director, Europart Middle East FZCO, told AutoParts Asia that the short-term planof Europart Middle Eastis to expand product lines andproduct range, andto enter new territories. The company wantsto raise the turnover from 110 million dirham in

50 | AutoPartsAsia | DEC’ 15 / JAN’ 16

2014 to 500 million dirham in the next three to four years.

on the Dubai Airport Road is exclusively for exports”, he said.

“We have a central warehouse facility in JabellAli, in the free zone, which is a 100,000 sqft area, from where we operate. We have three satellite warehouses in Dubai, Sharjah and Abu Dhabi. Here we stock the products for all the European brands like Mercedes, Volvo, and Scania. We have an article range (part numbers) of more than 7,500. Our showroom

Product Range Europart Middle East will add more part numbers to the Europart range as a parallel option for the customers. “In braking systems we have our own (Europart) brake drum, brake disc and brake pads but there we need to see what we have to add on. In suspensions we have about 200 part numbers, but we have to see how many to add

AFTERMARKET on. That way we need to expand our range and turnover”, Khan said. “For example, we have about 200 part numbers with Mahle. But Mahledeals with more than 3,000 part numbers. So we need to see what is required in this region and add to our existing part numbers. Depending on the market demand we have to expand the range without increasing the number of premium brands, about 1820, in our portfolio”, he said. In Germany, Europart is into workshop equipment also. “We have not done this here because the equipment is expensive and also we don’t have that big a concept of having automated workshops for commercial vehicles. We are looking at other options including entering into service”, he said. In lubricants, the company deals only with grease and engine coolant.“There is no strategic reason for this except that for lubes there is huge competition; but nothing stops us from getting into it in the near future”, Khan said.

New Territories Europart Middle East is planning to enter new territories like Sri Lanka, Singapore, Hong Kong and Malaysia. “In these countries the majority of the vehicles are of Korean and Japanese origin.There are also European trucks. Gradually we will get to allied vehicle segments also.This may take 4-5 years. When we decide about a new market we discuss with the shareholders and when they both are ready we proceed”, Khan said. Since the passenger car parts business is a volume game, unlike for the commercial vehicles where it is a value game, “we don’t want to get into the Japanese and Korean segments because there the competition is very severe with a lot of price undercutting. Still there is a lot of space for European products; that is where we want to get in first and then see if we can tackle the Japanese and Korean sectors”, he said. In India, Khan said: “We are approaching theDelhi-based Association of State Road Transport Corporations to become a registered vendor for the State Transport 52 | AutoPartsAsia | DEC’ 15 / JAN’ 16

Corporations as they operate a large number of the European buses. This will ease the buying process for them”. In Germany, Europart has developed spare parts and a new catalogue for the range of buses. In Dubai, he said, “we have not yet started that. It will be a new thing we will be going into.

Europart Middle East is to expand product lines and product range, and to enter new territories We may adopt both the direct billing system as in Europe or go through distribution channels depending on the market conditions.”Khan said as of now there was no plan to enter the North American market.

Business Models In Dubai,Europart Middle East, formed in 2007,began sales in May 2008 and the first year turnover was nearly five million dirham. Europart globally follows a two-brand policy. The company deals with all the major OE brands like Mahle, Wabco, Federal Moghul etc. “We sell all these OE brands and also we have our own private label called Europart. This is to give the customers a choice to have the OE-level quality products or something at a little lower price without compromising on quality. Different price points with almost the same quality as most of our items come from the same factories that are manufacturing for the OEs. Instead of the OE label the Europart label is used”, Khan said. In Dubai also the company follows the two-brand structure. UAE being a very

small market for retail business, the company follows the B to B model, where the company sells to the dealers and distributors who in turn sell to the end-users. The geographical expanse of this company is the entire Middle East, the Indian subcontinent and Africa. In Africa, it is present in Libya, Algeria, Egypt, Sudan, Kenya, Tanzania, Uganda, Angola, Nigeria, Niger, Chad and Cameroon. It has business also in Sierra Leone, Mali, and Mauritania all those French speaking countries. “Dubai is an 80 percent re-export market. Our mix is 50 percent for export and 50 percent for the

Europart Middle East will add more part numbers to the Europart range as a parallel option for the customers domestic market. Again, 80 percent of what we sell in the domestic market is re-exported. Interestingly in Afghanistan we have a different problem in sales. The mechanics there do not use our brake pads simply because once they fit them the trucks do not come back for six or seven months. They lose business. They want the trucksto come back in two to three months. It is a peculiar problem”, Khan said. Similarly in Sudan they ask for a ‘single-trip-part.’ The port city and the capital of Sudan is about 2,000km apart and trucking happens between these destinations in a big way. In case a truck needs some spares, the driver goes for a part that can take him back to his destination. These are the different kinds of quality requirements in the region. Some people want good OE quality but they want to save costs so they use private labels. Europart follows the B to C business modelin most of the locations. The company buys directly from the manufacturers and sells to the end-users through its retail shops. In Germany Europartowns over 200 retail shops avoiding all the inbetween channels like distributors, agents, retailers etc. It saves a lot

of margins there, of which some is passed on to the end-users and some retained by the company. The company gets good profits and the customer a good price, a win-win situation for both.

Europart Down The Years Europart was started 60 years ago by a family of five brothers and sisters with the maximum share, and began the business by manufacturing automobile springs. Spring is still in the company logo. Five years down the line they closed down the factory and began trading in spare parts. As the business grew the family found

it difficult to manage on its ownthe big finances, the more than 3,000 employees, several ancillaries and the markets in 26 countries including Russia and Dubai. Three years ago, the family sold the business to a US private Equity Company called Triton. Even the Triton management did not have much experience in running truck and spare parts business and 25 percent of the equity was sold to Paragon which had some experience in managing spare parts business. The company now stands as Europart Germany - Europart International. Last year the company had a turnover of over €450 million.

From a regional springs specialist to an international technical retailer, Europart, an international company with its roots in Germany, has grown wide and deep. The milestones: 1948 - Founded as the WestdeutscheFedernzentraleWachenfeld& Co. 1979 - The European orientation begins with the first branches in Denmark and later in Great Britain 1995 - Introduction of the EUROPART own brand 2000 - Company renamed EUROPART. International expansion advanced 2005 - Central warehouse in Werl opened 2007 - First branch outside of Europe in Dubai 2010 - The TrailerSTATION and TruckSTATION workshop concepts established 2011 - Takeover by the financial investors, Triton und Paragon 2013 - Strategic realignment and focus on the core business, commercial vehicle parts 2014 - Established the purchasing platform in China and opened the office in Shanghai AutoPartsAsia | DEC’ 15 / JAN’ 16 | 53

AFTERMARKET

AAPEX 2015 Accelerates Aftermarket Advances By T Murrali

ew generation products and deliberations on emerging technologies dominated the recentlyconcluded Automotive Aftermarket Products Exhibition (AAPEX 2015) at Sands Expo in Las Vegas, USA. The event focused on keeping buyers above the curve in today’s high-tech automotive aftermarket industry. Exhibitors displayed more technology in their booths than ever before, while AAPEXedu, the educative sessions, covered the latest in disruptive and emerging technologies and their potential impact on aftermarket business. AAPEX represents the $477 billion global aftermarket auto parts 54 | AutoPartsAsia | DEC’ 15 / JAN’ 16

industry. It is co-owned by the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA), the light vehicle aftermarket division of the Motor & Equipment Manufacturers Association (MEMA). TheAAPEXedu sessions offered buyers with the latest market research, management techniques and customer relationship strategies to boost profitability in an everchanging business environment. Some of the sessions provided key industry dynamics and influences shaping and impacting the automotive aftermarket. Bill Long, AASA President and Chief Operating Officer, said that there was a positive buzz about the aftermarket

in general. “The US aftermarket industry is huge, a $250 billion opportunity in 2015. It is projected to grow close to three percent over the next three years. Foundational industry trends are also positive”, he said. The addressable market, (the vehicle parc) is growing and is expected to add some 10 million net new vehicles to the US car population in the next three years. Low unemployment and affordable gas prices have led to the return of miles driven to pre-recession levels. It is no surprise that the mood is positive. In AASA’s most recent Quarterly Supplier Barometer survey, the members reported growth in the range of three to five percent.

major industry shift, he said. DIFM represents a dramatic 74 percent of all aftermarket product volume. By 2025, DIFM will grow by some $14 billion and represent 78 percent of all aftermarket product volume. The traditional DIY market will lose share, its dollar volume is flat. The market share of nondealers, or independents, represents the largest sector or 57 percent and will continue to grow, gaining one point market share, which represents $9 billion in growth over the next 10 years, he said. Long noted how consumer expectations are growing. “Today’s consumers are perhaps the most informed, most savvy shoppers. When they take their vehicles for service, whether scheduled or unscheduled, they expect a great experience. They want the service provider to know their profile and their vehicle’s service history, and they expect real-time quotes, a full explanation of service, speedy checkout and more.”

Hidden Factors “Among all these good news, there are some important hidden dynamics that our industry must take note of and cannot ignore,” Long said. He was referring to the high cost of the new technologies that drive the present and future growth, and their impact on auto parts business. New technologieshelp parts last longer, reducing replacement cycles and failure rates. A key battleground for growth in the aftermarket will be the ‘do-itfor-me’ or DIFM market. This year, AASA released an extensive thought leadership report, ‘DIFM Outlook 2025,’ alerting aftermarket suppliers and channel partners about this

Long commented on how connectivity will present both opportunity and some risks. “We, along with other industry stakeholders, are working together to address industry needs. We have created a stated principles document defining industry needs that support freedom of choice for the motorist. This is not about who owns the data. This is about creating a level-playing field that will enable independent service providers to perform the same maintenance and repair as offered by the car manufacturer and their dealer network, providing motorists the freedom of choice.”

The Importance Of ‘Purpose’ Louis Efron, the keynote speaker at the AAPEX General Session, told the audienceto realise that what they do in the auto care industry has a huge impact on life and the world. “Shout it from the rooftops. Take every opportunity to let people know what you do, and remember, you keep the world moving,” he said. Efron, a former head of Global Employee Engagement for Tesla Motors, opened his presentation, `Why Purpose Matters Most’, with a nostalgic look at the history of electric vehicles that dates back to 1884. “In 1899, Jacob German received the first traffic violation memo with an electric car in New York City. German was going 12 mph in an 8 mph speed zone, and was stopped by a police officer on a bicycle,” he said. Today, Tesla’s `Model S’ electric vehicle can go from 0 to 60 mph in 3.2 seconds. Efronspoke about Tesla Motors as a company driven by purpose. “The purpose of an industry, business or product is the magic that drives it forward,” he said. Purpose is the single most powerful tool for top and bottom line growth. “Purpose is the reason your organisation and industry exist. It’s your ‘Why’,” he added. Understanding your ‘What’ and ‘Where’ also are important, he said. Efron defined the industry’s ‘What’ as: “To provide parts and services to make vehicles last longer,

AutoPartsAsia | DEC’ 15 / JAN’ 16 | 55

AFTERMARKET perform better and keep drivers safe”. The ‘Where’ is: “To serve every vehicle on the road, and the ‘Why,’:“To keep the world moving”. He cautioned that success ultimately starts at recruitment. “If you want to hire people to move your mission and purpose forward, you must hire people who believe what you believe,” he said. To help connect people to purpose, Efron gave the audience sample questions for prospective employees: `What gets you out of bed in the morning’; `if you didn’t need money,

Winners, and paid tribute to Kathleen Schmatz, who is retiring after 14 years as CEO and president of the Auto Care Association.

AAPEX MobileApp One of the interesting aspects of the exhibitionwas the AAPEX 2015 mobile app. It provided instant access to everything on the show, before, during and after the event, keeping the visitors well-informed. Sponsored by ZF Services, the app provided exhibitors, searchable by company, product category and brand. New for this year, all products on display

exhibitors on the show floor. An all-new AAPEX TV, sponsored by ZF/TRW, brought a whole new level of excitement and exposure to the premier global event.

Exhibitors Galore AAPEX 2015 featured more than 2,400 exhibitors spread across over 5,000 booths. About 55 AAPEXedu sessions added educative value to the event. It was estimated that the show had over 39,000 buyers and over 140,000 automotive aftermarket professionals from about 140 countries. More technologies were showcased in booths than ever before to educate buyers the potential impact the latest innovative solutions could have on their business and the auto care industry. A re-designed Level 1 of the show floor made it easier for buyers to find exhibitors and products. The exhibitors offered products and services in several categories including accessories, batteries, body repair, car care accessories, climate control, driveline, parts for engine, fuel, suspension and electrical systems, greases & lubes, hand / power tools, lighting system and paint & coatings. The who’s who of the global automotive component industry participated in the expo. Some of the participants were Bosch, Continental, Delphi, Denso, Eaton, Federal Mogul, Mann + Hummel and ZF TRW.

India At AAPEX what would you do in life’; and `what do you want others to remember you for’? “At start-up, purpose, the very best people, notable innovation and hard work equal results,” Efron said. For sustainable results, a business needs purpose, exceptional talent in the right role, exceptional leaders, measured engagement, innovative and quality products and engaged customers. He asked the audience to determine, “What is your role in history, your purpose?” “If you love what you do, you never work a day in your life”, Efronconcluded. The AAPEX General Session announced the 2015 New Product and New Packaging Showcase 56 | AutoPartsAsia | DEC’ 15 / JAN’ 16

at AAPEX were listed in categories that align with industry standards, making it easier for the visitors to find exhibitors and products. An interactive floor plan featured company descriptions and booth locations and a ‘Locate Me’ facet for easy navigation on the show floor. In addition it had the schedule of theAAPEXedu sessions, a planner to set up a personalised itinerary, new products with all entries in the AAPEX New Product Showcase, custom ‘My Notes’ section for jotting down important information, buzz and social media links, Twitter and Face Book, for the most up-to-date AAPEX discussions. The app also had a ‘Walking Map’ to help quickly identify

As part of the ACMA delegation 15 Indian companies participated in the AAPEX 2015 show. They included Anand Piston International, Firstedge Marketing, GB Rubber Products, Global Automotive Components, Guru Nanak Auto Enterprises, JK Fenner, JSK Bearing Company, Japji Enterprises, Lucas-TVS, Pranav Vikas, Pricol, Punch Ratna Fasteners, Stork Rubber Products, Talbros Automotive and QH Talbros. In addition there were few participants under India Trade Promotion Organisation - ITPO.

Outlook 2016 Of all the sessions the one on ‘2016 Aftermarket Outlook’ was the most attended. David Portalatin, Industry Analyst (automotive aftermarket),

NPD Group, talked about the consumer driving patterns, retail pricing and the new and used car sales activities that influenced automotive products sales last year. He revealed how sales in 2015 measured up to expectations, and shared insights into consumer attitudes that would shape the coming year. The insights and analysis were derived from a wealth of economic trends, consumer research and product sales data. The session helped the participants understand which macro factors would have the greatest influence on 2016 sales and the changing consumer attitudes that represent growth.

Aftermarket Dynamics

educated the participants on harnessing the power of online marketing to produce businessbuilding results for their company. The difference inwebsites of many companies could be the difference in making money and remaining as a glorified brochure. Therefore, the deliberations attempted to make online marketing understandable and provided proven ideas to transform the company website into a powerful marketing tool.

Digital Driver The session on ‘Auto Services and the Digital Driver’ discussed how Google explored the intersection between auto services and digital consumer trends, including the

growth of online searches, the rapidly growing presence of mobile devices and the role of video in the customer journey. The audience could learn how the service centres’ website could be the number one source to help drivers learn more about the business. Besides, it also enabled the listeners to understand the drivers search for service centres on their mobile devise. The programme on `Real-world Service Programming’ covered current methods for programming new or updating existing electronic control modules in various vehicles and looked at methods and tools available to the aftermarket for programming. It enlightened the

The conference on ‘Aftermarket Dynamics and the Road Ahead’ revealed that the automotive aftermarket in the US is set to grow at a five-year compounded annual growth rate of 3.6 percent through 2018, a rate slightly below the corresponding nominal GDP growth rate of 4.4 percent.The session assessed the current aftermarket trends, economic factors influencing consumer spending, shifts in technology and demographics and how the interplay of these factors might influence the aftermarket in the next three to five years.

Online Marketing The session on ‘How to put your online marketing toolbox to work’ AutoPartsAsia | DEC’ 15 / JAN’ 16 | 57

AFTERMARKET participants on the importance of service programming.

Diagnostics Services The conference on ‘Selling Diagnostic Services for Maximum Profits’ dealt with how to sell diagnostic services for maximum profit and to create diagnostic service packages that auto repair consumers would pay for. In addition it also educated the participants on how to increase labour revenue through additional sales and how to overcome common sales objections. A number of aftermarket technologies are available today to enhance and maintain chassis and drivetrain systems which in turn improve driving performance and driver safety. The session on ‘Dynamic Performance Control’ provided an overview of the most prevalent technologies available across product lines to create the ultimate driving machine. The workshop on ‘Reduce Emission Control’ covered proven emission diagnostic procedures and strategies that would help the users make fast, accurate and complete decision related to PO420 codes (regulations) and other suspected emission control issues. There were case studies related to real-world emission faults.

Repair Shop Jungle With changes witnessed by the automotive industry the repair shop environment has also been changing and would continue to change dramatically, said experts at a session on ‘Repair Shop Jungle: Moving Forward and Leaving the Insanity Behind.’ The seminar taught the audience on the real business issues that need to be addressed to build the right road map, key building blocks, financial guidelines and the culture necessary to ensure future

58 | AutoPartsAsia | DEC’ 15 / JAN’ 16

prosperity.

China Landscape

Automotive industry has been engulfed with talks on connected vehicles. It has been getting into the aftermarket as well. A session on ‘Connected Vehicles: Have you lost connection with Infotainment?’ provided an overview of telematics systems included in today’s connected car and what was envisioned for the future. Besides, it also educated the participants on how to diagnose the systems and what was available to independent repair shops. There were discussions on the features of the present infotainment systems, opportunities for independent repair shops to benefit from and service repair of these systems.

Yet another session that drew large crowds was on China Automotive Landscape. Developing a winning strategy in China’s aftermarket involves mapping the value chain, identifying key stakeholders, and determining how supplies can best reach the customers. Since the development of a large- scale Chinese automotive market is relatively recent, the market for parts and service, chain service and repair stations have yet to be established on a wide scale, the panellists said. The session outlined China’s auto sales and growth trends, the market for parts and service as well as the nature of opportunities and key principles of success. It gave the participants the growth drivers and constraints in the Chinese aftermarket, distribution structure and dynamics and opportunities for Western firms.

Dwelling on the importance of service advisors, a dedicated discussion dealt with the importance of the mission of the person, who can be either a service advisor or a consultant, to ensure that every customer is driving a safe and reliable vehicle. Hiring the right type of person is the first step. But ensuring that he understands his role, educating him and providing him the right working environment would be the key to business success, the speakers said.

AAPEX 2015 ended with a positive note on the growth of the aftermarket in the whole world and the US in particular. The exhibits and deliberations matched the evolving global automotive industry trends. It also set the tone for the requirements of the future vehicles and aftersales service.

AFTERMARKET

SEMA Steals

Auto Enthusiasts’ Hearts By T Murrali

ows of vehicles and people connected with the automotive performance industry converged in Las Vegas for another edition of the Specialty Equipment Market Association Show (SEMA Show 2015). The recentlyconcluded SEMA Show2015 was once again a unique annual opportunity to learn about the latest innovations in the aftermarket industry, listen to the most important thought leaders and get the kind of business information available nowhere else. SEMA Show and the accompanying Automotive Aftermarket Products Expo attracted more than 140,000

visitors. The Las Vegas Convention and Visitors Authority said they brought in$118.4 million in direct spending. The organisers said it was the largest annual gathering of small businesses in the country. There were 3,000 product launches and many more business deals. It was all about showing off the latest and greatest in enhancing the performance and styling of cars, trucks and sport-utility vehicles. “These businesses generate about $40 billion in sales in the specialty equipment arena,” Peter MacGillivray, Vice President of SEMA Events &

Communication said. “Business is up for 2015’s SEMA show. It is a good sign that the industry is in for a good year”, he said. SEMA has been in Las Vegas since 1977 and live vehicle demonstrations have become its integral part. “This year’s SEMA Show had the most industry support that we’ve ever had in the event’s 49-year history,” SEMA Show Director, Tom Gattuso, said. “What that means to buyers is more new products, more innovation and more ways for them to improve their businesses in the coming year and beyond. In fact, what you do in four days in Las Vegas really can help you chart your business course AutoPartsAsia | DEC’ 15 / JAN’ 16 | 59

AFTERMARKET event returned, but in a new location. Showgoers could simply walk across the street to the Gold Lot after the Show ended on Friday, November 6, where consumers joined exhibitors and attendees from the exclusive trade-only SEMA Show.

New Products

for the next four years.”

New Features Just like the industry it represents, the SEMA Show evolves each year, and the 2015 event included some new features and attractions. There were several noteworthy changes like the new Showcase location for new products. The Showcase also featured extended hours, opening at 8:00 a.m. (one hour before the show floor opens). A first-ever New Products Showcase Buyer Happy Hour took place between 4:30 pm and 5:30 pm during November 3-5 for the visitors and buyers to unwind at the end of the day.

could stop worrying about writing the information down or losing a piece of paper and start scanning away. For The First-Timers: This year’s SEMA Show included four FirstTime & Featured Exhibitors areas. There were only two in 2014. The Racing Annex was in meeting rooms N110 off the Grand Lobby, and the Performance Pavilion, just outside the South Halls, adjacent to the Renaissance Hotel. Other First-Time & Featured Exhibitors areas were located in the east- end of upper South Hall and at the Westgate Las Vegas Resort & Casino. These areas included exhibitors representing

Mobile App Scanning Capabilities: The SEMA Show Mobile App

was updated and improved. New this year was the app’s ability to act as a scanner in the New Products Showcase, which sent users an email that included a personalised list of products selected along with product details. With the app, the visitors 60 | AutoPartsAsia | DEC’ 15 / JAN’ 16

various market segments. Two Transportation Hubs were located at the convention centre for Showgoers to get to and from the SEMA Show. New Location for SEMA Ignited: The entire SEMA Ignited event was brand-new in 2014. This year, the

SEMA Show Management reported that interest in the New Products Showcase was at an all-time high, resulting in an unprecedented number of entries for the 2015 Show. The New Products Showcase was a dedicated section of the show highlighting new and signature products from the exhibiting companies. Products that did not qualify as new were entered in the Featured Products category, and providedtheexhibitors an opportunity to generate interest and awareness for a particular product or product line of their choice. As the No. 1 buyer and media destination, exhibitors who participated in the showcase experienced greater product awareness, more traffic at their booths and increased media coverage from the SEMA Show. About 20 percent of all show buyers were attending the SEMA Show for the first time, so the featured products category was especially valuable to exhibitors that wanted to promote an existing line to new customers. While there had been an unprecedented number of submissions, the showcase was equipped to accommodate as many exhibitors as possible. “Exhibitors are realising the value of the showcase as a tool to generate more product and brand awareness,” SEMA Trade Shows Director, Tom Gattuso, said. “The showcase is equipped to accommodate more exhibitors who are ready to build on their SEMA Show investment and gain additional publicity.” To make it easy for visitors to connect with manufacturers of products they see in the showcase, buyers and media could use scanners to create a personalised list of products in which

AFTERMARKET 2015 SEMA Show, a number of recently-released products were on display at the booth. JW Speaker Corporation received this year’s Best New Product Award under $500 by the LTAA. The award was for its new-and-improved LED headlight called the Model 8900 Evolution, a popular drop-in replacement light for the heavy-duty trucking industry. The new design boasts of a 30 percent increase in high beam intensity as well as lower power use.

ARB Corporation

they were interested. Information, including company name and booth location, was included in the list based on what products were scanned.

New Exhibits JW Speaker Corporation announced the unveiling of several brand new LED forward lighting products this year at the SEMA Show 2015. The company’s latest batch of LED forward lighting products came fresh on the heels of a family of Jeepspecific lighting products which

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included the world’s first truly plug & play LED headlight, the Model 8700 Evolution J Series. “This is our first year exhibiting at SEMA and we are excited to show everyone the new advances we are bringing to LED forward lighting in the aftermarket,” Tim Speaker, JW Speaker’s CoPresident and Co-Owner, said. “It’s important for us to look ahead and meet the unique needs of our customers before they even expect them.” In addition to the unveiling of their latest LED forward lighting at the

ARB Corporation Limited is Australia’s largest and industry leading manufacturer and distributor of 4WD vehicle accessories, with sales in more than 100 countries. The company released a range of polymer diesel fuel tanks for popular current model vehicles. While vehicle makers have been using polymer fuel tanks for many years, ARB is heading to a new frontier with an extended fuel range replacement tank for diesel powered vehicles. The company also introduced alloy bull bars.

ATC Truck Covers ATC Truck Covers introduced SXT Tonneau cover. It comes in four low profile sections that can be removed individually, allowing for easy,one person operation. The SXT comes with a padded heavy duty vinyl bag with three reinforced handles and can be stored easily anywhere

including the garage, basement, bed of the truck or back of the cab.

K&N Filters K&N Filters showcased a range of air intake systems. For over 20 years the company has been making improvements in the power and torque characteristics of its easy- toinstall air intakes. The air intake filters are specifically engineered to use the existing factory holes and mounting points, making installation simple. The vast majority of the cold air intakes do not require any cutting or drilling.

Westin Automotive Westin Automotive Products introduced scope front bumpers, the Sunper Precision technology that gives jeep enthusiasts the tools to take aim at the terrain with precise level of off-road functionality. It also introduced Snyper recoil rear bumper, sidearm rock rails, sling fender flares, HDX front bumpers, FM4Q LED & FM6 LED flush mount lights, thrasher board truck steps and R7 Boards.

Brandmotion Brandmotion LLC unveiled 360 degree vision systems that are the next step in adding useful eyes around a vehicle. They can help prevent accidents and make low-

speed manoeuvring easier and safer. While these are the emerging feature in high-end luxury vehicles, the company has made this feature available a la carte for a wide range of vehicles. It has also introduced collision avoidance system as part of its Advanced Driver Assistance System (ADAS) portfolio. Hellwig Suspension Products introduced a range of helper springs,

air suspension, sway bars and endlinks. LetsgoAero launched lightweight, spacious and user-friendly treehaus camper, multi-function utility trailer, V2 two-bike rack, tele-folding two-bike rack and tele-folding four-bike rack. Rampage Product, among other products, released an all-new soft top for two- and four-door Jeep Wrangler JK vehicles. Called the TrailView

AFTERMARKET Soft Top, this product combines the features of the company’s awardwinning Frameless Trail Top with an easy-to-use fold-back sunroof to let the sun shine in. MaxTrac Suspension unveiled a kit that includes two inch aluminium lower spindles made from 6082 T-6 aircraft grade aluminium. Besides, it has rear shock extenders for the factory shocks, air ride sensor rods for proper operation and ride height, coil springs – with 100 percent bolt on installation. Yakima Products Inc introduced several key products, sales and

marketing initiatives and expanded sales support team. It launched streamline system base racks that are interchangeable with its towers, including three aerodynamic bars and round bar. It also unveiled the premium ShowCase line of cargo boxes. Aries introduced AdvantEDGE series all-aluminium construction eight-sided tube profile bull bar, side bars and headache racks. Besides, it introduced StyleGuard floor liners, AeroTread running boards, RidgeStep running boards and Jeep rocker step. Curt introduced A 20 & Q 25 fifth-

SEMA Ignited After four days behind closed doors, open only to industry professionals in the Las Vegas Convention Center (LVCC), hundreds of cars and trucks at the SEMA Show rolled out of the exhibition hall in the SEMA Cruise and assembled at ‘SEMA Ignited,’ an extravaganza that included food, music, celebrities, iconic builders and displays. At 4 pm on Friday, November 6, the last day of the event, the rally of close to 300 participants began with the roar of revving engines and blaring of horns. Called the ‘Battle of Builders’ of vehicles, the event gave the audience from the public, media, SEMA Show exhibitors, attendees and guests, a rare opportunity to collect and share images of hundreds of customised vehicles featuring the new and most innovative products from the SEMA Show. Introduced at the SEMA Show last year, the SEMA Battle of the Builders competition began with more than 200 64 | AutoPartsAsia | DEC’ 15 / JAN’ 16

vehicle builders and car customizers entering 260 custom cars competing for the coveted title of Top Builder. Builders who made it to the Top 10 round of competition selected from among them the Top Builder. Some of the restored vehicles included Aston Martin, Buick, Cadillac, Camero, Camino, Corvette, Chevrolet, Datsun, Dodge, Mercury and Oldsmobile. And quite a few celebrity cars including those of Elvis Presley and Beatles participated in the show.

The Winner The winner of the Battle of the Builders competition was announced the same evening. The three finalists included Bobby Alloway and his ’33 Ford Roadster, Chip Foose and his ’65 Chevy Impala, and Alan Johnson and his ’53 Studebaker. In the end, it was Alloway who was named the Top Builder.

“This has to be the biggest award I have ever won,” Alloway said. “We were being judged by our peers, guys that can do and have done the same as I. That’s big!”

wheel hitch, double lock EZR gooseneck hitch, OEM-compatible fifth-wheel legs & roller adapters and OEM safety chain anchor kits. The show witnessed participation from vehicle manufactures and parts makers. The OEMs included BMW, FCA, Ford, General Motors, Honda, Hyundai and Toyota. Representations from components manufacturers include Akzo Nobel, Axalta, Bosch, Brembo, Corgi, CarO-Liner, Continental, ZF TRW etc. A few Indian companies including BKT, JK Tyres, and Manatec Electronics participated in SEMA Show 2015.

FOCUS

Magna International Opens Two Plants In Gujarat By Sharad Matade

agna International has started two production facilities at the Sanand region in Gujarart, India, to make complete seats, body and chassis systems. Both the plants are within a supplier park close to the Ford India assembly plant. “We are making another exciting step forward in the growth and development of Magna’s business in India. We continue to expand our footprint in sales, engineering, programme management and manufacturing to align with our customers and with the prospects of increased production by the Indian automotive industry”, Jim Tobin, Chief Marketing Officer and President of Magna Asia, said. The company executive did not reveal the exact amount of investment on the two plants, but said “several millions of dollars have been poured in”. The North American automotive supplier’s seating facility at Sanand will have an initial capacity to make seats for 240,000 cars a year. It can be increased to 500,000 on a two-shift basis. The seating system facility, spread over 2,15000 sq ft, is making complete seat systems for Ford’s Figo and Aspire models. The seating plant, equipped with modern conveyor systems to make front and back seats supported by the latest technological tools, took around 11 months to get operational. It employs 200 people.The body and chassis systems facility has 500 employees and 80 robots producing 64 different vehicles’ bodies and chassis parts. The company has deployed female workers also in floor operations

located at Halol, Chennai and Pune. They make under-body members, upper-body structure members, chassis components like front press members, lower control arms and various other vehicle body enforcements. While inaugurating the Magna plants, Kel Kearns, director, Manufacturing, Sanand Vehicle Assembly and Engine Plant, Ford, said, “Today what we are doing here is delivering a model of `Make in India’. We are producing domestic vehicles with Magna’s seats and sheet metals for India and for export hubs and will supply cars produced here to Europe”.

For Other OEMs Initially, the Sanand facilities will supply to Ford Motor in India. The company has plans to supply to other OEMs also. “We support our customers on the global platform and that drove us to India. We supply on the same platform to other markets as to Ford. We will be ready to supply products manufactured at Sanand to other OEM customers who are in the region and plan to expand”, Deval Desai, vice president and country manager, India, Magna International, said. With these two plants, Magna has 116 plants in 80 different countries supplying to Ford. “Our key

customers like Ford want to make sure that we have a world-class infrastructure to communicate to all markets where they are present and we continue to expand. We have three priorities: world-class manufacturing, innovations, and people development. We will continue to focus on them,” Tobin said. Magna India expects to raise revenues to $ 300 million in the next three years. “We are expecting to double our revenue this year to $100 million. I think the growth will continue with the planned capacity expansion. This will bring the next growth phase and we can achieve our target”, he said. Magna’s plant in Chennai has not been affected by the recent unprecedented floods in Tamil Nadu. “No damage has happened to our plant. Our customers may have been impacted, but our plant was not shut down during the flood. Volumes were down as our customers like Ford and Nissan in Chennai were shutdown during the flood,” Tobin said. Magna international is the second largest automotive supplier in the world based on sales revenue in 2014. It has around 125000 employees, 285 manufacturing and 83 engineering and sales support facilities around the world.

The body and chassis systems facility, which will work under Magna International’s Cosma International, is the fourth facility in India and second in Gujarat. The other three facilities of Cosma International are AutoPartsAsia | DEC’ 15 / JAN’ 16 | 65

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Automechanika Shanghai In By T Murrali

utomechanika Shanghai 2015, Asia’s largest trade show for automotive parts, accessories, equipment and services, and the second largest Automechanika event worldwide, had a record number of exhibitors and visitors. Organised by Messe Frankfurt (Shanghai) Co Ltd and the China National Automotive Industry International Corporation (CNAICO) between December 2 and 5, 2015, thetrade show was held at a new venue: National Exhibition and Convention Center, Puxi, Shanghai. Automechanika Shanghai has been growing in popularity and its previous exhibition space was not sufficient for the highcalibre exchange platform for the worldwide automotive industry. China being at the forefront of the fast-growing automotive market,more local and global companies wanted to be part of the show. The new 280,000 sq.m area, with 27 percent more space,was fully occupied for exhibiting and sourcing the latest in automotive products and services in the 11 halls of the largest single block building and exhibition complex in the world. Automechanika Shanghai continues to expand annually with many newcomers from all over the world and a number of repeat exhibitors

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opting to increase the size of their booths. The event has emerged as a global professional platform for information exchange, social networking, education and training, and business development. The exhibition space covered the entire automotive industry supply chain, including OE and aftermarket, under four major sectors: Parts and Components, Repair and Maintenance, Accessories and Tuning, and Electronics and Systems which was added in response to the demand at the previous Automechanika Shanghai exhibitions. This new sector utilised over 40,000 sq.m of exhibition space, about 15 percent of the total, housing 658 exhibitors. The brands included Continental Automotive, Denso, Hella, Huirun, MagnetiMarelli and Zhejiang VIE.The special zones for New Energy, Remanufacturing and Auto Manufacturinghad on showwideranging products and leading technologies.

Largest Show “Automechanika Shanghai served as a professional platform for international and Chinese companies”, Fiona Chiew, Deputy General Manager, Messe Frankfurt (Shanghai) Co Ltd and the Show Director of the trade fair, said. It has been an effective starting point for these companies to expand

worldwide through networking and meeting of global buyers. The 5,395 exhibitors from 39 countries and regions, included five new countries – Ecuador, Finland, Israel, Liechtenstein and Morocco – and 34 returning countries and regions: Argentina, Australia, Belgium, Brazil, Bulgaria, Canada, China, Denmark, France, Germany, Greece, Hong Kong, India, Indonesia, Iran, Italy, Japan, Korea, Malaysia, the Netherlands, Pakistan, Poland, Russia, Singapore, Slovakia, Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, the UK, the US and Vietnam. The number of international exhibitors was up 16 percent with 18 overseas pavilions, including two new ones from Israel and Russia. The returning pavilions were from France, Germany, Hong Kong,

New Venue Breaks All Records India, Italy, Japan, Korea, Malaysia, Pakistan, Poland, Singapore, Spain, Taiwan, Thailand, Turkey and the USA. According to the organsiers, this was the largest Automechanika Shanghai show so far. The number of visiting industry professionals, global buyers and trade visitors, including 110 visitor groups, rose 12 per cent compared to last year to over 100,000. More visitors had been invited from areas in North and Southwest China to enhance the visitor structure from the different manufacturing regions of China. Local groups included new auto dealers, distributors, repair centres, 4S shops and brand chain stores. There were also returning buyers, research representatives and technicians. The number of overseas visitor groups, including new groups from Pakistan and Russia, increased 31 percent from last year. The returning

groups were from Australia, Hong Kong, Indonesia, Japan, Korea, Malaysia, Nepal, Poland, Singapore and Turkey. The show also had more supporting industry organisations from the existing groups and six new visitor group organisers, including the Trade Development Authority of Pakistan.

Sourcing Opportunities The participation of many internationally-renowned brands in Automechanika Shanghai 2015 provided abundant opportunities for industry sourcing. The new brands included: Seiki, Alight, Bilstein, Denso, Du Pont, MagnetiMarelli, NGK, SATA, Sofima, Telwin and many more. The returning brands were: Balance, Bantam, BASF, Bizol, Bosch, Botny, Brembo, Bright, Carlas, Chery, Continental Automotive, ContiTech, Cummins, Dana, Eurolub, Federal Mogul, Hella, Mahle, Launch Tech, Liqui Moly, Mann+Hummel, NTN, Osram, RAV, Rowe, SAIC, Schaeffler, Sonax, TRW, Voltronic, WashTec, Weichai, Yunhan, ZF, Zonyi and many more. The Premium Buyers Club, established since last year, had invited more high-quality and top management global buyers to this year’s show. These buyers were matched with compatible exhibitors for more efficient and productive use of time and better networking.

Fringe Programmes The buyers couldknow about the

latest in product development and technologies in the automotive industry through the fringe programmescomprising about 53 events. They were among the key highlights of Automechanika Shanghai 2015. The largest event was organised by the Accessories & Tuning sector, with better scope for information exchange, trading, marketing and knowledge sharing. This sector had the strongest growth among all others this year with several interactive events, including a focus on environmentfriendly practices and products. Live demonstrations of conservation applications for car washing with a guided video broadcast and interactive activities made the programme more attractive. The sector had also presentations on ‘Chinese Style’ modified vehicles, Megane RS modification principles, a demonstration on engine hood painting, drift technology and displays of modified cars. The leading aftermarket brands that held such fringe programmes were: Bosch, CTP, ITW, Federal-Mogul and Liqui-Moly. The programmesincluded a diverse range of seminars for brand building, introduction of new products and promotion of new technologies. Several industry associations also joined the fringe programme. They included the China Association of Automobile Manufacturers, Frankfurt Rhine-Main GmbH – AutoPartsAsia | DEC’ 15 / JAN’ 16 | 67

EVENT International Marketing of the Region, China Council for the Promotion of International Trade, Sichuan Council (CCPIT-Sichuan) and the Chamber of International Commerce Shanghai. Many events within the fringe programmes were co-organised with some of the new industry associations and organisations sharing the latest information and development of the industry and technologies. The notable among the fringe programmes were: AIAG Auto Parts Purchasing High-Leadership and Suppliers Forum 2015; Autohaus China 4th International Dealer Summit 2015; Automotive Aftermarket Summit 2015; Auto OEM Purchasing Trends Summit 2015; China Auto Repair and Maintenance Summit 2015; China Collision Industry Summit; International Automotive Congress 2015; Investment Opportunities for Chinese Automotive Enterprises in the Frankfurt Rhine-Main Region; SAE Connected Cars and Electric Vehicles 2015; and the Summit on `Merger and Acquisition Strategies for Chinese Automotive Corporations in the Overseas Markets’.

in Shanghai; the extension to Jeddah, Saudi Arabia, and Birmingham, the UK; and new business links with the mobility and logistics sectors. The modern exhibition centre in Shanghai has outstanding infrastructure and offered the organisers, excellent opportunities for growth, he said.“We will have two new Automechanika trade fair premiers next year: Automechanika Jeddah in about eight weeks, and Automechanika Birmingham in June 2016. The response from the automotive companies to these regional events, with their focus on the supplies industry, is fantastic and goes beyond our initial objectives,”Johannes said.

Automechanika Expands Michael Johannes, the Vice President and Brand Manager of Automechanika, spoke about three important developments for Automechanika: The new venue

Fiona Chiew

Messe Frankfurt is extending its business links with the mobility and logistics sectors and will organise two new trade fairs covering trucks,

bikes and boats. “Our present portfolio includes Comtrans, the world’s second largest trade fair for commercial vehicles, the Eurasia Moto Bike Expo in Istanbul, the Johannesburg Truck & Bus Show, Materials Handling & Logistics, the Automotive Engineering Show in Chennai and the CAPAS Chengdu”, he said. Johannes concluded: “One notion that I keep hearing about at trade fairs is ‘Connected Mobility’. Yet this is much more than just a buzzword or current hype. It is something that affects us all and will change both the motor vehicle industry and the aftermarket. And we are working in this area too. We have just organised a conference in Dubai on the subject of ‘Future Mobility’ and, next year, we are planning more conferences on other current topics and trends. Keep an eye open for these.”

Messe Frankfurt Sales Up Messe Frankfurt, the leading international trade fair organiser with its own exhibition grounds, has reported increased sales during 2015. Presenting the Group’s preliminary key figures for the current year, Wolfgang Marzin, President and Chief Executive Officer of Messe Frankfurt, said: “We expect sales to be around €645 million, a new record for our company, and earnings before tax €47 million, similar to last year. Adjusted for depreciation and financing costs, EBITDA (earnings before interest, taxes, depreciation and amortisation) is €98 million. Consolidated annual net income will once again be more than €30 68 | AutoPartsAsia | DEC’ 15 / JAN’ 16

million.” “Domestic sales have grown to about €400 million. About 57 percent of the group sales,€370 million,is from the company’s Frankfurt base. Operating business outside Germany has increased to €245 million.By expanding business in our relevant growth markets, we now generate 38 percent of our sales revenue outside Germany,”he said. Marzin sees the broad worldwide sector expertise as one of the important success factors of the group. The company will promote synergies within its portfolio, including the development of

established flagship events in Frankfurt. They relate to such areas as security which has made Messe Frankfurt an established name around the world,though yet to be associated with its Frankfurt base. In 2016, the Intersec Forum, a conference for networked security technology, to be organised parallel to `Light + Building’, will mark the beginning. AboutMesse Frankfurt’s strategic plans, Marzinsaid: “With a very solid starting position and a strategic long-term company-orientation, we are equipped for the future and we will continue to concentrate on what makes us successful.”

Interaction

Messe Frankfurt On Growth Track

In a special interview to T Murrali of AutoParts Asia on the sidelines of Automechanika Shanghai 2015, Michael Johannas, Vice President and Brand Manager of Automechanika, said the company was very optimistic about its growth in the coming years. The excerpts:Q: The automotive aftermarket is growing in almost all the markets. What does it mean for Messe Frankfurt? Johannas: We are very happy and proud because we have so many supporters around the world. The automotive is a global industry and therefore, we have lots of markets. We have seen huge increase in the consumption of spare parts and aftermarket products. As a service provider, we have 15 shows in 14 countries and we are quite optimistic about the coming years. Q: Does it indicate a double digit growth?

Michael Johannas

Johannas: No, I don’t see a double digit growth; I think it will be much better if we can have continuous growth. Even if it is not a big growth,

I anticipate a steady growth. This will help the industry much more than peaks and sharp dips. Q: What do you expect of the new Automechanika Birmingham? Johannas: Our expectation is tremendous. I think we will have about 500 exhibitors in an area of about 20,000 sq.m. We could not believe that it will be such a fantastic beginning. Q: Do you plan to enter any other new market? Johannas: I cannot tell you about any new market. We are looking at different places in Asia. As I said, the automotive industry is global and we ask our customers what they need and we try to implement Automechanika for them.

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Excon Exposes India’s Construction Equipment Production Prowess APA Bureau

he technological advancement, the range of equipment and vehicles, and the multiple level manufacturing capability of the Indian automotive industry in the construction and mining equipment andother infrastructure project sectors were exposed at the International Construction Equipment and Construction Technology Trade Fair, Excon 2015, in Bangalore. Organised by the Confederation of Indian Industry (CII), Excon has become SouthAsia’s largest exhibition of construction and mining equipment and has positioned India as a global manufacturing hub. The 8th edition of the exhibition, Excon 2015, in the last week of November,had participation of 22 countriesand eight country pavilions from China, Finland, 70 | AutoPartsAsia | DEC’ 15 / JAN’ 16

Germany, Italy, South Korea, Spain, Turkey and the UK. The exhibition, with the theme ‘Make India Building Infrastructure, Building the Nation’,spread on an area of 2.20 lakh sq.ft, had 810 exhibitors, including 270 overseas companies, and over 3500 business visitors. Some of the participants include Ashok Leyland, Apollo Tyres, Atlas Capco, Caterpillar, CNH, Daimler India Commercial Vehicles, Eicher, Kobleco, Schwing Stetter, Tata Motors, Volvo and Wipro. Theother major highlights of Excon 2015 were the over 200 new launches, live demonstration of advanced technology, international buying delegation and industry conferences. Nitin Gadkari, the Union Minister of Road Transport, Highways and Shipping, who inaugurated the exhibition, said that infrastructure

development was highly essential for the progress of the country. The need of the hour was quality construction, good equipment and a good approach. “I urge the industry to explore the possibility of using bio-diesel or ethanol in construction machinery as it would aid in reducing pollution and also be in sync with the Government’s vision of a clean India”, the Minister said. He also urged the industry to look at the manufacturing of machinery for tree transplantation to assist the green roads policy of his Ministry. Gadkari saidthe atmosphere for road development in the country was very good. “We are planning to increase the national highway length from the current 96,000 km to 150,000 km, and build express highways between Delhi and Srinagar, and between Mumbai and

Nagpur”, the Minister said. SumitMazumder, President, CII, said India would continue to offer huge markets due to its infrastructure and real estate sectors. Railways, road and highways, power, ports and airports offered big investment potential. “With a strong and coordinated approach of the Government and the private sector, India can build an advanced and robust base of capital goods”, he said. VipinSondhi, Chairman, Excon 2015and Managing Director and CEO, JCB India Limited,said that the industry witnessed a difficult 36 months, but there has been some stability now. Excon has grown into South Asia’s largest platform for propelling sustainable infrastructure growth.

Construck Range From Tata Motors Tata Motors presented at Excon 2015 the Tata Construck range consisting of Tippers, Transit Mixers, Truck- mounted cranes and concrete boom pumps. Tata Construck Tippers cater to the widest range of applications like road construction, irrigation, coal, iron ore, marbles, port handlings, lime stone, concrete mixture and municipal applications. The new Tata Construck commercial vehicles on display included: Tata Prima 3138.K 32cu.m box coal tipper for heavy duty coal mining application; Tata Prima LX 2523 .K RePTO, a high- powered RMC on the Prima platform, with rear engine power take-off; Tata Prima LX 3128.K 19cu.m Scoop HRT (Hub Reduction Tandem rear axle) for

shallow and light mining application; and Tata SAK 1613 4X4 –A 4X4 configuration vehicle suitable for offroad mineral movement application. Rajesh Kaul, Business Head, Intermediate, Medium & Heavy Trucks, Tata Motors Ltd, said, “We at Tata Motors are delighted to showcase some of our new construction and mining vehicles for the first time here at Excon 2015. All the vehicles on display from the Tata Motors Construckrange are based on extensive customer feedbackand built according to world-class manufacturing standards. Their designs and aggregates are tested to withstand some of the toughest working conditions”.

Bharat Benz Displays 11 Trucks Daimler India Commercial Vehicles Pvt. Ltd. (DICV), with its exclusive brand BharatBenz, displayed 11 trucks from its construction and mining range of products, including India’s first indigenized mining truck 3143. This truck is capable of operating in challenging terrains and can efficiently operate in deep mining conditions. It comes with the OM 457 Mercedes-Benz engine, with 12- litre capacity and six cylinders delivering 430hp. BharatBenz 3143 is available in two variants 19.5cu.m rock body and 32cu.m coal carrier. Erich Nesselhauf, Managing Director and CEO of Daimler India Commercial Vehicles, said, “With top quality products from our worldclass factory in Oragadam, Chennai, we have not only made a mark with our Indian and International customers, but also convinced

other Daimler brands and entities to source parts from us and our supplier network.”

Scania’s Mining Tippers Scania Commercial Vehicles India Pvt. Ltd. showcased its premium mining tippers, the P 410 (8×4) coal body and P 410 (8×4) SSAB rock body, at Excon 2015.Scania also showcased its special aftermarket customer support applications and services like Fleet Management Service (FMS), Scania lubricants and other genuine parts. Anders Grundströmer, Managing Director, Scania India and Senior Vice President, Scania Group,said:“Scania is bullish on the Indian market, especially the mining sector, and we are confident of growing further in the coming years. Our products are designed to withstand the toughest and most demanding mining conditions. Scania is planning to doubleits manufacturing capacity in India over the next five years and significantly augment its employee base in the country”.

Volvo Launches Dump Trucks Volvo Trucks introduced at Excon 2015 its higher capacity 5-axle mining dump trucksbased on Volvo’s FMX platform. The FMX 520 10x4 dump truck offers 33 percent higher capacity and the FMX 480 10X4 gives 28 percent higher capacity than the current 8X4 solutions available in the market. Volvo Trucks also showcased a highly-customised coal haulage solution with 33cu.m bodies,the largest coal haulage truck in the Indian market, along with their AutoPartsAsia | DEC’ 15 / JAN’ 16 | 71

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flagship model the FMX 440 8x4I shift. Unveiling these trucks, Pierre Jean Verge Salamon, President, Volvo Group Trucks India, said he is very positive about the Indian growth story and optimistic about the Government’s plans to double coal production to one billion tonne by 2020. Hesaid Volvo Trucks has around 65 percent market share in the high-performance mining segment in India. These trucks are technologically most advanced and the safest to operate in the highdemanding and toughest mining conditions. Vinod Aggarwal, CEO, VE Commercial Vehicles, said “We believe in creating and delivering value to our customers with our comprehensive offering which helps to improve their productivity and profitability. The offering includes Volvo’s aftermarket onsite support with more than 130 touch points.”

Eicher Showcases Pro 6025T Eicher Trucks & Buses showcased at Excon 2015 a series of tippers in the Pro 6000 and 8000 category. They included the newly- launched 330-hpPro 8031XM 8x4 tipper with rock body and box body options for mining,220- hpPro 6025T6x4 box body, and 210-hp RMC for construction sectors. With these, Eicher is fully equipped to address two critical segments of mining and construction. The Pro 6000 and Pro8000 range have been developed with strong collaboration between VECV and Volvo Group leveraging on each other’s strengths to deliver the 72 | AutoPartsAsia | DEC’ 15 / JAN’ 16

desired value to the customers in the tough construction and mining applications.

JCB IndiaUnveils 25 Machines JCB India Limited, India’s leading construction equipment manufacturer, presenteda line up of 25 `Made in India’ machines at Excon 2015. Apart from new variants of its existing machines, JCB showcased the new `ecoXcellence’ range of Backhoe Loaders. Also on display were the JCB 220LC Xtra Tracked Excavato, a new entrant from JCB India in the 22-tonne market, the much- awaited 455 ZX Wheeled Loader in the 5-tonne segment and the new Master Loader. “It gives us immense pleasure to be a part of South Asia’s largest construction equipment exhibition. This year too we are showcasing our world leading products which are known for their performance, cuttingedge technology and versatility,” VipinSondhi, MD and CEO, JCB India Limited, said. JCB had a dedicated ‘Innovation Centre’at its stall and showed a 3D film on JCB Innovation & Future Technology giving a realtime experience of JCB Livelink Technology. Livelink is an innovative telematics technology that allows users to monitor machines remotely. Sang-DokYim, Marketing Support, Department/Strategy Division of Korea Construction Equipment Manufacturers Association (KOCEMA) was of the opinion that it was the opportune time for companies to invest in India as it was an emerging market. Establishing his confidence in EXCON 2015, Yim said, “You can

expect more Korean companies to invest in India in the coming years”. The ‘Make in India’ initiative too has received a lot of appreciation from international participants with Chinese company Luoyang Longda Bearing Co., contemplating opening up an office in Kolkata by next year. Zhou Weidong, Vice President and Senior Engineer, China Council for the Promotion of International Trade (CCPIT) representing China Chamber of International Commerce (CCOIC) and Machinery Chamber of Commerce said that Chinese companies were seriously looking at collaborating with Indian companies in the construction equipment industry. China is the biggest foreign exhibitor with participation of 172 Chinese companies. Germany too sees huge prospects in participating in India’s exciting infrastructure growth story. Sebastian Popp, Deputy Managing Director, Construction Equipment and Building Material Machinery (VDMA) said that visibility of India and the Indian economy has increased phenomenally over the past few years and the country’s future potential is being played out to prospective investors with aplomb. The investment climate in the country is continuously improving and in the construction equipment space alone companies are already active in India. A total of 31 companies from Germany are participating in EXCON 2015. With the construction equipment industry picking up growth momentum, EXCON 2015, which is generating positive energy and enthusiasm from global and Indian players alike, will act as a catalyst to boost growth.

TECHNOLOGY

Experts Moot Use Of Galvanised Steel For All Cars To Be Made In India the domestic market,” Kenneth De Souza, Consultant, Canada IZA, said. Galvanised steel, made of controlled coating of zinc on steel, helps automotive manufacturers to make light-weight vehicles and enhance fuel efficiency without sacrificing corrosion-resistance and strength of the vehicle. According to IZA, In India, around 70 per cent of the body panel of the cars for export is made of galvanised steel to meet regulatory norms mandated by the US and Europe. However, only three percent of the body panel of the same cars supplied in the domestic market is made of galvanised steel. Of late, in the new models around 20 percent of the body panel is made of galvanised steel.

By Sharad Matade

xperts at a recent International Zinc Association (IZA) meeting in Mumbai highlighted that the use of galvanised steel for car manufacturing would enhance safety and fuel efficiency. It would also lower emission and benefit buyers. They also called for legislation to increase its use for all cars made in India. The meeting, an interactive session on zinc, was organised by IZA in association with IIT-Mumbai and Hindustan Zinc Ltd (HZL), a subsidiary of Vedanta. “Auto makers in Europe, North America and other developed countries have been using galvanised steel for decades for making body panels and for anti-perforation warranties. However, its use in India is very low, despite the availability in

“Considering the fact that India is already the sixth largest car manufacturer in the world and it is set to grow from here along with added advantages like improved safety and fuel efficiency, weight reduction, reduced emissions, and increase in lifecycle cost, it is high time that the domestic cars also are galvanised the same way as international or export models,” De Souza said. The use of galvanised steel for making cars does not make much of a difference in production cost. Explaining the cost difference, the IZA Canada Consultant said: “Using galvanised steel, with a surface rust warranty up to five years, adds only an estimated cost of Rs 9,000 to the entire value of car. But the overall benefit to the automaker by converting the 400 kg car body from cold rolled steel to galvanized steel is estimated to offset the material

and processing cost. With the new generation of steel, we are trying to reduce the weight by 39 percent of the car, De Souza said. According to a study headed by A.S. Khanna, Professor, IIT Bombay, around 60 percent cars suffer from corrosion in India. The study done on 500-odd cars revealed that four major areas, bonnet, boot, rocker and door panels, suffer from corrosion. “Surface rust could be the reason for reducing the strength and fuel efficiency of a car. A zinc coating will not only help increase the longevity of a vehicle but also improve the resale value”, he said. However, there are challenges on the technical and business fronts. In India, all grades of galvanised steel are not available and galvanised steel is difficult to weld, he said. “But these issues can be addressed by changing the welding parameter,” Khanna said. “India loses around five percent of GDP every year due to corrosion, while it is around 3.2 percent in the US. We have a good potential to save the country from 1.5 to two percent of GDP loss by galvanising. We shall extend full support to IZA in this fight for corrosion”, Vikas Sharma, COO (Smelters), Hindustan Zinc Ltd, said. “The government should bring in legislation, as in developed countries, to enforce use of galvanised steel for making cars,” the Hindustan Zinc executive said. It is likely that the government would bring standard specifications for automotive coated steels soon. The draft of a Bureau of Indian Standards (BIS) specification for automotive coated steels is in the final stage. This, we think, will increase the use of galvanised steel”, Sharma said. NB: Photo used for representational purpose only. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 73

PREVIEW

IMTEX Forming 2016 In Bengaluru To

Display Innovative Products, Applications APA Bureau aspects of forming technologies. About the technology display at IMTEX Forming 2016, L. Krishnan, President, IMTMA said: “High power fibre laser cutting machines is definitely one of the new technologies that would be presented at this IMTEX. Companies will also display servo presses, hydroforming, plasma cutting, profile bending machines, robotic welding and service, and welding technologies. The event will benefit the entire manufacturing sector.” L Krishnan

ndian Machine Tool Manufacturers’ Association (IMTMA) is organising its flagship `IMTEX Forming 2016’ exhibitionat the Bangalore International Exhibition Centre (BIEC) from January 21 to 26, 2016. ‘Tooltech 2016’, for dies & moulds, forming tools, machine tool accessories, metrology and CAD/ CAM will be held simultaneously in the same venue.These exclusive business-to-business event in Bengaluruwill attract Indian and foreign exhibitors who would offer a range of technologically innovative manufacturing and engineering products and applications. IMTEX Forming 2016 and Tooltech 2016 will be an important exhibition for South and South-East Asia with the presence of leading national and international manufacturing firms from the metal forming sector. IMTEX Forming is expected to be an expanded fair which would feature all

VAnbu, Director General, IMTMA,said: “By participating in the show, exhibitors will be able to learn about the latest technological requirements and cement business relationships. High-level delegations are expected to visit from key private and public sector undertakings. The event will help policymakers to prepare a roadmap for the industry and enable them to take informed decisions.” IMTEX Forming, though an event for the Indian Metal Forming Industry, is South and South-East Asia’s apex exhibition showcasing the very latest trends in metal forming machine tools and technological innovations from Indianand international companies. The event will bring together visitors from a wide spectrum of manufacturing and ancillary industries, key corporate decision and policymakers and industry captains who are keen to source the latest technologies and manufacturing solutions for their production lines. Added attractions that will form part of IMTEX Forming 2016 are: ‘International Seminar on Forming Technology’, on January 20, 2016; ‘i2 Pavilion’ (Industry – Institution Pavilion, a forum for academic and R&D institutions); and‘Connect,’for young engineers. The seminar on forming

74 | AutoPartsAsia | DEC’ 15 / JAN’ 16

technology will focus on metal forming processes, new materials, tooling and design and emerging technologies. It is expected to bring together the fraternity of forming technology on a common platform to discuss related issues. Forming technology forms an integral part of manufacturing in many industries and has contributed to the development of many new processing technologies, processing methods, machineries, tools and solutions to design and fabricate end-products/finished goods. IMTEX Forming has become a one-stop forum where customers can experience ‘live’ display of

Key Highlights • Display of high-power fibre laser cutting machines. • More than 450 exhibitors from 22 countries. • Group participation from Germany, China, Japan and Taiwan. • Exhibition space covering about 30,000 sq.m. in three halls. • Visitor footfall of about 50,000.

the machines enabling them in the decision-making process to enhance their manufacturing capabilities. The fair will include all forming technologies,including sheet metal and plastics, ceramics, composites and exotic materials. The mega show will present the latest machine equipments, processes, tools, accessories, software and raw materials and feed stocks required to manufacture formed parts in every engineering application. IMTEX Forming 2016 will provide an opportunity to meet and interact with leading exhibitors from several countries. The participants will be able to know about new products, technologies and manufacturing solutions, see the latest trends in metal forming, and listen to international experts.

PREVIEW

Auto Expo - Components Show 2016 To Attract More Companies, Business Visitors APA Bureau

he biennial Auto Expo -Components Show 2016 is very significant as it is the first show after the unveiling of the curtain raiser for the Automotive Mission Plan 2016-26 (AMP 2026), by the Union Government.Therefore, there is enhanced interest from players in the auto components space not only from India but also from overseas markets. This is because the international companies would want to leverage the opportunities from the growth trajectory being chalked out by the AMP. The show gains importance also because for the first time, the organisers,Automotive Component Manufacturers Association (ACMA), Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers (SIAM), have occupied the entire PragatiMaidan, New Delhi, for one of the biggest exhibition of auto components, technology and services, scheduled for February 4-7, 2016. Auto Expo – Components Show 2016 will have 20 percent increase in the number of exhibitors both from India and abroad. The fair has already been completely booked. Similarly they expect a large influx of national and international business visitors. Seven exclusive International pavilions from China, Canada, Germany, Japan, Taiwan, South Korea and the U.K.

will be set up. The participants keen to engage with the Indian suppliers will display their latest products and technologies In addition to the regular display of components, Auto Expo – Components Show 2016 will have dedicated pavilions for bearing manufacturers, garage equipment suppliers and ACMA’s AsliNaqli Pavilion. The event will observe as theme, ‘Mobility for all’ with a specific focus on ‘technologies’, which will provide an ideal platform to the industry across the automotive spectrum to hold discussions and networking. The theme reflects the government’s roadmap on trending topics such as emission control, safety and security, and electric mobility. The 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. These targets are indeed ambitious, and to realise them, the industry and the government have to work in unison. It is necessary to improve

the utilisation of existing capacities, improving the overall skill levels of the employees, upgrading the capabilities of Tier-2 and Tier-3 companies besides, attracting further investments of about USD 80 billion. While 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. The organisers have planned live demonstrations of advanced technologies during the event. There will also be a unique contest to engage engineering students and to encourage them to learn about new and innovative technologies. The Auto Expo – Motor Show will take place during February 5-9, 2016 at the Noida Expo Mart, New Delhi. In 2014, which was the first year when the Components Expo and the Motor Show were organised separately at different locations, the former had registered 1,115 participating companies including 684 Indian and 431 overseas businesses. The total number of visitors in the last edition of the Components Show was more than 71,350. For the upcoming edition it will be much more. Photo used for representational purpose only. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 75

PREVIEW

UKIP Testing Expo In Chennai

To Present Latest Systems, Technologies APA Bureau

he Automotive Testing Expo India, which opens its doors fromApril 20-22, 2016, in Chennai “will improve vehicle quality, enhance reliability and help component durability and efficiency to take giant leaps,” says Graham Johnson, Managing Director of UKIP Media & Events, the international company that organizes the Expo. “Visitors to the show will see 130-plus exhibits from testing technology and component-validation experts from all over the world,” Johnson continues. “Durability testing technologies, crash testing technologies, engine validation systems, dynamics measurement systems, NVH measurement technologies: the very latest and next-generation vehicle measuring and proving technologies will be displayed on all the exhibition stands throughout the hall. If OEMs and automotive component suppliers want to reduce product failure and improve vehicle performance, then they need to attend this show!” With more brand-new testing technology launches than ever before, visitors will be able to see a host of companies showcasing their latest test and measurement technologies, from across the world. International companies choosing this showcase include the likes of Michigan Scientific Corporation (MSC) (Booth 2081), which will debut its new LW12.8-T lightweight wheel force transducer (WFT) system, and vehicle network tool supplier Intrepid Control Systems (Booth 2062), which will release its newest all-in-one CAN FD, LIN, DoIP, XCP/CCP network interface, standalone gateway, and datalogger the neoVI FIRE 2. A new standard in vibration testing will be set at the show when IMV (Booth 2006) debuts its newly developed high-performance A-series vibration test system for the global automotive market. Offering a huge improvement in performance, the new A-series increases the 76 | AutoPartsAsia | DEC’ 15 / JAN’ 16

relative excitation force compared with conventional shakers. Also on display, Data Physics will preview its new dynamic signal analyzers, the 900 Series. These signal analyzers integrate comprehensive signal analysis capabilities with a new distributed real-time signal processing engine (Booth 4023), while visitors will also discover more about Ipetronik’s (Booth 2096) IPEmotion app for Android devices, which offers a wireless platform to display test data. Using the IPEhub2 module and a wi-fi connection, it is possible to transfer CAN data to mobile devices such as tablets and smartphones. Of further interest to test and development engineers, En’Urga (Booth 2002) will share details about its latest product, a cuttingedge dense spray evaluation technology called the SETXvue x-ray tomography system, which is an alternative to conventional methods such as diffraction, PDI, PIV and PLIF. Meanwhile, German company Göpel Electronics (Booth 2000) will present an electrical test technology bonanza, with a number of key electrical test technologies for electronic components and mounted PCBs, including the magicCAR TC, a cost-effective, modular and scalable test system for development and quality assurance of vehicle networks. On top of this, a host of domestic and international companies located in India will be showcasing their latest test and measurement technologies. These exhibits include the latest ET-

Series environmental test chamber from Bangalore-based Envisys Technologies, which offers high performance and inherent reliability, and features a built-in web server for remote monitoring. (Booth 2111). An unmissable attraction for ECU developers, ETAS Automotive (Booth 3144), who’s India office has been based in Bangalore since 2007, will provide details of the new desktop version of its highly successful LABCAR testing system, which enables users to carry out initial tests from the comfort of their own desks, while FARO Business Technologies India (Booth 3071), with offices in both New Delhi and Chennai, will display its range of computer-aided measurement devices and software, including portable equipment that permits high-precision 3D measurement and comparison of parts and compound structures within production and quality assurance processes. Also running throughout the duration of the show is a free-to-attend Open Technology Forum, featuring multiple streams discussing the latest concepts and innovations, as well as presentations from many of the world’s leading experts in automotive test and development.

BRAND TRENDS

Orbit Bearings Bears Fruit With OEMs By Sharad Matade

he Rajkot-based Orbit Bearings India Pvt. Ltd is one of the leading manufacturers of bearings in India. It claims to be among the top five automotive bearing makers in the country. The company produces taper roller, cylindrical roller and unitised (HUB) bearings for automotive and industrial applications catering to leading OEM manufacturers oftrucks, truck trailers, agriculture tractors, transmissions, engines, compressors, and industrial gearboxes. “We always wanted to be in the quality product segment as we have been aiming to be one of the reputed bearing makers in the world. The OEM market is quality conscious. In the aftermarket, there is still scope for inferior quality products and it is more price- sensitive. That’s why we are catering principally to the OEM segment,” Vinesh Patel, Managing Director, Orbit Bearings, said. Being the principal supplier of OEMs, the company has limited its product range to 100 to 120types of bearings. “Orbit Bearings is the first company in India to design and manufacture advanced HUB bearings and export to the European truck and trailer

up business further, he said. In the US, the company will continue its strategy to target only the OEM segment, he added.

Quality The Prime Mover Slowdown in the market brings more opportunities for the quality productmakers, and Orbit India has grown faster in sluggish times, Patel said. “Whenever the market is not performing well, OEMs come out to get quality resources at competitive prices. That’s where Orbit’s role comes in. Bad times are good times for us. We have grown more in bad times,” he said. The company has grown between 20 percent and 30 percent in the last decade. Itexpects the same growth rate to continue. Automation has been the company’s integral part since its inception. In 2000, Orbit modernisedmanufacturing processes by installing automatic production lines in its plant. The company has installed the latest systems and processes in its

Products – ORBIT producers. It helps achieve greater life cycle cost-savings for the customers,” he said. The company’s major export markets are Europe, the US, Australia and other Asian countries. Orbit Bearings is now focusingmore on the European markets. “We have presence in the European market from the last decade. Now we have opened an office to ramp

78 | AutoPartsAsia | DEC’ 15 / JAN’ 16

new plant at GIDC Metoda. The current production capacity of Orbit is 3.5 lakh bearings a month. Its new manufacturing plant with a monthly capacity of 6.5 bearings is almost ready. It is very close to the present plant. The Orbit Technology Centre to provide advanced engineering solutions to the customers is also getting ready.

“With the new plant, the total production capacity will be one million bearings a month. However, the production will be ramped up in phases. For the new plant, the company has invested₹ 200 crore and will spend another ₹ 200 crore in phases”,Patel said.

R & D Facility “Orbit Bearings hasinvested in a research and development (R&D) facility which can conduct virtual simulation testing for our automotive customers and friction management processes to improve fuel efficiency. The micro- geometric technology developed by us has further improved life for the wheel bearings. Reduced friction will not only enhance the service life of bearings but will also give big gains in overall efficiency and reliability. Optimising manufacturing processes and resources is one of the core strengths of our company,” he said. The Orbit Technology Centre, where the company’s engineering research and product development services take place, works in areas like metallurgy, material science, lubrication, designing, validation, manufacturing and application engineering. “Our engineers work with the OEM customers to define application problems and provide most efficient solutions that help end-users get the most out of their products,” Patel said.

GLEANINGS - International

Bosch Solutions For Connected Car APA Bureau

he car of the future is connected. It uses up-tothe-minute information from the internet to get vehicle occupants to their destination safely, efficiently, and conveniently. This integration into the internet of things also unlocks a host of vehicle-related services. “Connectivity is clearly revolutionising the way we drive,” Dirk Hoheisel, member of Bosch board of management responsible for this area, said. “Bosch delivers the necessary hardware and software, and is developing a range of attractive services,” he said. The company’s strategy is opening up business opportunities as well. This is borne out by existing studies on the internet of things, all of which indicate that there is enormous market potential in the mobility sector. Thanks to its comprehensive systems expertise and product portfolio, Bosch is in a solid position to tap that potential.

Cloud-based Alert Bosch has premiered a cloud-based alert that warns drivers within ten seconds if there is a wrong-way driver approaching. The warning system, which is scheduled to go into production in 2016, is a connected

lifesaver in the true sense of the word. A connected car drives more proactively than any person. Information on traffic jams, black ice, and wrong-way drivers is available in the cloud. When combined with infrastructure data from parking garages and charge spots, this provides a broader perspective, the `connected horizon’. “In the connected vehicle, the driver can see over the top of the next hill, around the next bend, and beyond,” Hoheisel said.

Car Goes Online Bosch pursues two main approaches to connect the car with internet. First, it makes full use of the driver’s

smartphone. Using the integrated mySPIN solution, drivers can link their Android and iOS devices to the vehicle’s infotainment system. Selected apps can then be conveniently operated from the vehicle’s central display. This technology has been featured in Jaguar and Land Rover models since 2014. Use of it in Asia is spreading, driven by contracts with two other automakers in China and an alliance with the Chinese internet company Tencent. The second approach constitutes equipping the vehicle with connectivity hardware in the form of a connectivity control unit, or CCU. The CCU receives and transmits information using a wireless module equipped with a SIM card. Bosch offers devices specifically adapted to cars, commercial vehicles, motorcycles, off-highway vehicles, and even railway freight cars. Along with driving data and information on the vehicle’s surroundings, the connected car also captures data on the operation of individual components. Running this data through sophisticated algorithms permits preventive diagnostics.

Bosch Reduces Energy Consumption APA Bureau

osch is making progress when it comes to climate protection. Since 2007, the company has succeeded in reducing CO2 emissions thanks to various energy-saving measures,

such as the use of eco-friendly technologies in manufacturing and the installation of efficient heating technology in buildings. “The conservation of resources and reduction of CO2 emissions are a part of our social responsibility as business people. By using intelligent energy-saving technology, industry can make a significant contribution to climate protection,” Werner Struth, member of Bosch management board responsible for environmental protection, said. For Bosch, the lower energy consumption is already paying off financially. Between 2007 and 2014,

the company saved around €530 million in energy costs through inhouse measures, he said. Bosch has implemented many projects aimed at supplying itself with renewable energy. A modern hydroelectric facility supplies the company’s plant in Blaichach, Germany, around three-quarters of the energy it needs itself. At various Bosch locations, specially trained CO2 coordinators are searching for ways to save energy. Bosch also provides many of its solutions for more energy efficiency to industrial customers, who can achieve energy savings of up to 30 percent. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 79

GLEANINGS - International

Kia Motors Plant In Mexico Is Production-Ready APA Bureau

ia Motors has completed the construction of its first manufacturing plant in the State of Nuevo León, Mexico. With an initial investment of about US$3 billion into the project by Kia Motors and suppliers, the stateof-the-art Kia plant was constructed in 13 months after breaking ground in last October. Seong-Bae Kim, President of Kia Motors Mexico, said: “Thanks to the state-of-the-art technology and manufacturing processes being introduced to the plant, we expect our facility to be one of the most environment-friendly automotive manufacturing plants in the region. Once mass production commences, it will take less than one minute for a vehicle to come off the assembly line, making our facility among the most productive among all Kia plants globally.” The plant will have an annual production capacity of 300,000

vehicles, about 10per cent of Kia Motors’ total global production. Kia’s Mexico plant joins the 10 other manufacturing facilities in Korea, China, Slovakia, Russia and the US where Kia vehicles are assembled. Sixty per cent of output from the plant will be exported to North America while 20 per cent will be for the Mexican domestic market. The remaining 20 per cent will be exported to the neighbouring countries in Latin America. Kia’s presence in Mexico is expected to generate approximately 14,000 direct jobs and 56,000 indirect jobs. The manufacturing complex features sophisticated production equipment such as a US$75-million stamping press that measures 18 metres high and weighs 3,862 tons, making it the

largest of any Kia plant in the world. The plant utilises an advanced monitoring system that promotes continual improvement in energy saving and environmental conservation. It has an integrated water treatment plant which will prevent soil contamination and harmful runoff into the nearby Pesquería River. The plant also uses LED lighting technology to save energy and is expected to introduce various projects to promote the use of alternative energy sources such as solar energy.

Volkswagen Group Caps Capex APA Bureau

he Volkswagen Group is aligning investment activity in its Automotive Division with the current situation. The aim is for planned investments in property, plant and equipment, investment property and intangible assets, excluding capitalised development costs (capex), to be capped at approximately €12 billion next year. The average figure for the previous planning period was about €13 billion a year. Accordingly, the construction of the planned new design centre in Wolfsburg is being put on hold, saving approximately€100 million. The construction of a paint shop in Mexico will be reviewed. In the model range, the successor to the Phaeton – a pure-play electric model 80 | AutoPartsAsia | DEC’ 15 / JAN’ 16

– is being delayed. “We are operating in uncertain and volatile times and are responding to this. We will strictly prioritise all planned investments and expenditures. As announced, anything that is not absolutely necessary will be cancelled or postponed,”We will review and potentially cancel further expenditures or spread them out to a greater extent in the next few weeks, but without putting our future viability at risk”, Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, said in Wolfsburg after a regular meeting of the Company’s Supervisory Board. “Together with the Works Council representatives we will make every

effort to keep our core workforce on board,” he said. However, Müller announced the intention to increase expenditure on alternative drive technologies by about€100 million next year. The core focus will be on rapidly developing electric drive systems for the Volkswagen Passenger Cars, Audi and Porsche brands. Most of the capex is earmarked for new products. About 50 percent of it will be on the Group’s 28 locations in Germany. The joint ventures in China will maintain their previously announced investment levels and are planning expenditures in the amount of approximately €4.4 billion in 2016. These investments will be financed from the joint ventures’ own funds.

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GLEANINGS - International

3D Printing Helps Build A

Ford Supercar At Home unique hexagonal Vignale design in the upper front grille, the dedicated 19-inch Vignale lustre nickel alloy wheels, and dual chrome exhausts with polished aluminium surround. “3D computer printing technology has totally changed the way we design and develop new vehicles. We can be more creative in trying to find potential solutions, and for the customer this means that our cars are better able to incorporate the latest thinking in design and technology,” Sandro Piroddi, Ford of Europe’s Rapid Technology Supervisor, said.

APA Bureau

he 3D printer technology can now be used at home to print models of some of Ford’s most desirable cars, including the all-new Ford GT, Ford Mustang, and Focus RS. In the development of these three cars 3D printing had played a key role. Ford uses 3D printing to reduce development time through the production of prototype parts that enable designers and engineers to quickly test and refine different approaches. Traditional prototyping methods require special tools and can be time consuming. Ford can print a 3D part in a few hours and, for as little as £750, open up the opportunity for more experimentation and more radical, innovative design. For the Ford GT, designers used laser 3D printing techniques to help create the F1-style steering wheel with integrated driver controls and the transmission paddle-shift controls. Engineers also printed key lightweight structural components for the upward-swinging doors. 3D printing has enabled Ford to try hundreds of different designs for the all-new Mondeo Vignale. Among prototype parts manufactured using 3D printing processes were the 82 | AutoPartsAsia | DEC’ 15 / JAN’ 16

For customers with their own 3D printer, The Ford 3D Store (http://3d. ford.com) offers the first automaker authorised one-stop store for 3D-printable files. In addition to enabling customers to print their own Ford GT, templates for a further 1,000 models also include the Fiesta ST, Focus ST and the F-150 Raptor.

Design Process The first step in bringing a vehicle design to life is a sketch produced by the Ford Design team. Clay modellers then make a scale model and later a full-size version of the vehicle to assess proportions and develop the design. In parallel, digital sculptors create a model using computer-aided design (CAD). The two models are developed together, leveraging the strengths of both disciplines. While some parts are worked in clay, more complex or detailed items are mostly developed digitally and often 3D printed – which is where Rapid Prototype teams at Ford’s Dunton Technical Centre, in Essex and at its European headquarters in Germany come into play. Rapid Prototyping helps to evaluate the design and uses one of a number of techniques to create the piece they are

working on, including 3D printing. The latter requires CAD software that “slices” parts into paper thin layers that can be built up into a 3D printed prototype. How robust the prototype part needs to be determines the material used. It can be plastic, sand, or metal. Layer by layer, the materials are fused together into the desired shape using a laser.

From Prototypes To Production Ford is collaborating with Carbon3D in the US to research future rapid prototyping and small manufacturing programme capabilities. The partnership is leading the development of future 3D print resins capable of supporting the loads, high temperatures and severe vibrations associated with vehicle testing. Continuous Liquid Interface Production technology (CLIP), a 3D printing technology used in the movie industry to create special effects, grows parts from UV curable resins at speeds as much as 25 to 100 times faster than conventional 3D printing processes. “Incredible as it is that 3D printing has been around for more than 25 years, it is a technology that is moving more quickly than ever before, opening up new ways of manufacturing the cars of the future,” Piroddi said.

GLEANINGS - International

Jaguar Land Rover Expands UK Engine Plant APA Bureau

aguar Land Rover is doubling the size of its Engine Manufacturing Centre (EMC) as part of a £450m expansion programme. This latest news from the UK’s leading manufacturing investor is a clear signal of the company’s long-term commitment to Britain. Total investment in the site, which opened a year ago, now stands at £1billion making it the most significant new automotive manufacturing facility to be built in the UK in the last decade. EMC is home to the high technology, low emission Ingenium engine Jaguar Land Rover’s first venture into in-house engine manufacturing in a generation. In just 12 months, the Midland-based facility has moved from prototype production to full-scale manufacture with more than 50,000 engines coming off the production line. The Ingenium engine launched initially in the Jaguar XE in April 2015 was followed quickly by the Discovery Sport, two of the most significant product launches from

the British manufacturer accounting for sales of 65,800 in the year so far. EMC has cemented its position as the heart of Jaguar Land Rover’s UK manufacturing operations supplying all three vehicle plants with engines which also power the Range Rover Evoque, all-new Jaguar XF and the soon-to- be launched ground breaking Jaguar F-PACE. This latest phase in the development of the EMC will see the site increase its operational footprint to 200,000 square metres, supporting capacity uplift as the company continues on its product offensive to deliver more exciting new products to customers.

Strategic Facility Jaguar Land Rover CEO, Dr Ralf Speth said: “We are proud to be such a significant investor in advanced manufacturing in Britain and are excited by this expansion and the new jobs it will create. EMC is a strategically significant facility for Jaguar Land Rover. The decision to expand our operations at the site provides a clear signal of our

JLR Goes To Slovakia Jaguar Land Rover has confirmed recently that it will be the first British carmaker to open a manufacturing facility in Slovakia. The announcement follows an agreement between the company and the Government of the Slovak Republic to build a new plant in the city of Nitra, western Slovakia. The new world-class £1 billion premium manufacturing facility will eventually employ around 2,800 people. Dr Ralf Speth, Chief Executive Officer, Jaguar Land Rover

commented, “Jaguar Land Rover is delighted today to welcome Slovakia into our family. The new factory will complement our existing facilities in the UK, China, India and Brazil and marks the next step in the company’s strategy to become a truly global business. Slovakia has an established premium automotive sector, which represents 43% of the country’s overall industry. It has more than 300 suppliers in close proximity and an excellent logistics infrastructure; this confirmed our decision that this country was the ideal location.

commitment to meeting customer demand for cleaner and more efficient engines, while developing the skills and capability that Britain needs if it is to remain globally competitive.” This facility will create severalhundred new jobs at the Centre which will see Jaguar Land Rover’s global workforce hit 40,000 by next year. In the 12 months since its opening the EMC has employed 700 persons with further recruitment under way. The first eight recruits to be employed for the project in 2011 were apprentices who this month graduated from Jaguar Land Rover’s industry-leading programme and took on exciting roles within the EMC and wider powertrain organisation. Lauren Quinn, one of the EMC’s first apprentices said: “My time as an apprentice at the Engine Manufacturing Centre far exceeded my expectations; it’s given me a future I could have only dreamed of 5 years ago. “When I started in 2011 I was one of only eight official employees dedicated to the project and the plant was no more than a muddy field. We have come such a long way in a short span of time and I’m proud to have been part of this world-class team and the creation of a facility which will create a legacy for many years to come.” The Engine Manufacturing Centre is one of Jaguar Land Rover’s four UK-based manufacturing facilities. Together with its R&D centres in Coventry and Gaydon, Jaguar Land Rover has invested £11billion in product creation and facilities, creating more than 20,000 new jobs in the last five years. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 83

GLEANINGS - International

Volvo Cars To Develop Next Gen Technologies With Microsoft APA Bureau

olvo Cars, the premium car maker, will work together with Microsoft, the leading platform and productivity company, to develop jointly next generation automotive technologies. The two companies have revealed how Microsoft HoloLens, the world’s first fully untethered holographic computer, might be used in future to redefine how customers first encounter and explore a car, as well as how cars might be bought and sold in future. Areas of future collaboration between the two companies could include autonomous driving technologies and the utilisation of data generated from connected cars to create new services. The demonstration of the HoloLens was conducted at Microsoft’s global headquarters in Redmond, USA, and showed how mixed reality might be used by customers to configure cars in three dimensions. With HoloLens, a powerful, wearable computer, holograms are mixed into the physical world. “HoloLens offers the freedom to create a bespoke experience which customers can steer themselves. Imagine using mixed reality to choose the type of car you want -to explore the colours, rims, or get a better understanding of the features, services and options available,” BjörnAnnwall, Senior Vice President, Marketing, Sales and Service, said. HoloLens technology might also liberate dealers from more traditional sales environments and allow them to take a car configurator out on the road in small Pop-Up stores, shopping malls or on the 84 | AutoPartsAsia | DEC’ 15 / JAN’ 16

high street, opening up new sales channels and introducing cars to a far larger potential audience.At the HoloLens demonstration, the participating journalists were also given a mixed reality preview of Volvo’s new S90 premium sedan, which will be unveiled in reality at the North American International Auto Show in Detroit in January. The event offered an indication of the potential of mixed reality to transform the relationship between the customer and the car. Journalists were able to experience Volvo’s new sedan and its latest autonomous driving technology in 3D before the car has even been built and launched. “We are thrilled to be working with Volvo Cars to re-imagine what is possible in car design, discovery and purchasing. We are excited to be at this intersection of technology and human-centric design with Volvo,” Scott Erickson, Senior Director, Microsoft HoloLens at Microsoft Corp. There will be a long-term cooperation between Volvo and Microsoft that will embrace a range of new technologies, all of which have implications for the automotive

industry. One area of focus will be autonomous driving. Volvo Cars is a pioneer in car safety and is leading the way when it comes to connected cars and autonomous driving. It has announced a programme called Drive-Me in which 100 self-driving and connected cars will be given to real customers on real roads around the Swedish city of Gothenburg by 2017, the world’s largest autonomous driving experiment. Other areas of cooperation are expected to include how information gathered by cars and their drivers can be used to enhance the driving experience and the possibility of using predictive analytics to improve safety. “We are extremely happy to innovate with Microsoft in the field of future mobility,” KlasBendrik, Senior Vice President and Chief Information Officer at Volvo Cars, said. “Today’s technology will allow us to achieve not only a more sustainable and crash-free future but also new benefits for our customers and society. Together with Microsoft we aim to pioneer in this field.”

GLEANINGS - International

Twenty-Five Years Of 3D Printing At BMW APA Bureau

he BMW Group is celebrating the 25th anniversary of the introduction of additive manufacturing in the company. The additive manufacturing, known as ‘3D printing’, is among the key production methods of the future, according to Udo Haenle, Head of Production Strategy, Technical Integration and Pilot Plant, the BMW Group. “The targeted use of innovative additive procedures at an early stage has made us one of the pioneers and leaders in 3D printing over the years. At the BMW Group Technology Office in Mountain View, Silicon Valley,USA, we are now conducting a first test-run with the new CLIP (Continuous Liquid Interface Production) technology,” he said. Today 3D printing is applied in many different areas at the BMW Group. “Components made with additive manufacturing give us a lot of freedom in the forming process; they can be produced both quickly and in appropriate quality. We see major potential for the future application in series production as well as for new customer offerings, such as

personalised vehicle parts, or the spare parts supply,” Haenlesaid. In the long-term, customers are to be provided with the option of having individual vehicle components made according to their personal preferences.

Application In Prototyping In 1990, the BMW Group’s Rapid Technologies Centre commissioned the development of the first facilities and from 1991, the first prototype parts were produced on the company’s own stereolithography machine. In the beginning, the additively produced parts were mostly used for concept cars but developed further for additional purposes over the years. Depending on the component specifications, the BMW Group applies different procedures and materials. Today, additive manufacturing methods are most commonly applied in areas that frequently require small batches of customised and sometimes also very complex components, such as predevelopment, vehicle validation and testing, and concept cars. Toolmaking, or operating resources are also main application areas. A particular highlight of the technologies is the completely new vehicles, such as the BMW i models, which come without predecessors. So, initial prototypes need to be produced in large part with additive methods. Besides using additive manufacturing for trendsetting new vehicles, an especially charming area of application of the technology is for BMW classic cars. Thanks to this reverse engineering method, it is

possible to generate previously unavailable components for the spare parts production.

Possible Other Uses The BMW Group can apply 3D printing in a great variety of areas. A particularly interesting example is what the Rapid Technologies Centre produced for the British Paralympics basketball team in 2012. Based on 3D body scans of the team members, customised wheelchair seats were made for each player. In mid-2014, the BMW Group introduced a 3D-printed ergonomic tool in the vehicle assembly that protects workers against excess strains on the thumb joints while carrying out certain assembly activities. Each of these flexible assembly devices is a single piece, customised to match the form and size of a specific worker’s hand. Another milestone has been the application of additive manufacturing method for metal parts, which allows for new solutions and is already used in small series production. For several years, BMW has equipped its DTM racecars with water pump wheels made with 3D printing. The 500th 3D-printed water pump wheel was fitted in April this year. The high-precision component, which is subject to high stresses, consists of an aluminium alloy and has previously proven its worth in the tough environment of motorsports. The team of the Rapid Technologies Centre at the BMW Group’s Research and Innovation Centre (FIZ) in Munich works on close to 25,000 prototype requests annually, producing some 100,000 components a year for inhouse customers. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 85

GLEANINGS - International

ZF Honours 14 Top Suppliers APA Bureau

for example, in every one of the company’s 8-speed automatic transmissions, including the thrust washers which absorb axial loads during a rotating movement.

E Winkemann GmbH emerged from a multi-stage process as the winner of the `Innovation’ category. For over 20 years, the company from Plettenberg has been supplying to ZF Friedrichshafen AG precision punching parts that are installed,

The countries of origin of the award winners in the `Production Materials’ category perfectly reflected ZF’s global orientation. The eight award-winning companies are headquartered in seven countries: MAT Foundry Group (Great Britain), Staamp (Italy), Murata Manufacturing (Japan), Sunil M Tech (South Korea), GrünerSystemtechnik, UTT TechnischeTextilien (both Germany), WR Controls (Sweden), and Taigene Electric Machinery (Taiwan).

F Friedrichshafen AG has honoured its outstanding suppliers with the `ZF Supplier Awards’. This year, the technology company handed out 14 awards in different categories. This year’s eighth awards event was also a premiere: The first global Supplier Day, with ZF and ZF TRW jointly presenting the `Supplier Awards’.

Winners in the `NonProduction Materials’ category include Balluff GmbH, which has supplied ZF with sensors and systems for assembly lines, as well as Kontane Logistics, a triedand-trusted logistics partner from the US southwest. The Esslingen-based, family-owned and operated company

Festo has been supporting ZF for decades with factory and process automation solutions, and Turin-based specialised machine manufacturer Vigel, which recently equipped the new ZF TRW plant in Zhangjiagang with processing centres, were also among the award recipients in this category. Fuchs Petrolub earned a special award as the 2015 Global Supplier of the Year. The company supplied 21 000 tonnes of oil and lubricants to ZF last year. The jury praised the high quality and flexibility of the Mannheim-based supplier. Additionally, Fuchs Petrolub is also active in the special ZF growth markets thanks to their own production location. “In order to remain a global benchmark, we are striving to be the leader in both innovation and cost efficiency. In this regard, our suppliers’ contribution is substantial.” Wilhelm Rehm, member of the Board of Management responsible for Corporate Materials Management among other things, underlined the significance of innovative, globally active and reliable suppliers, the best of which have received the `ZF Supplier Awards’.

Global Automakers For Measured Approach To NCAP Changes APA Bureau

he Association of Global Automakers (Global Automakers) believes it is important that a measured approach be taken when modifying the National Highway Safety Administration’s (NHTSA) consumer information programme. The agency has proposed a number of significant changes to the New Car Assessment Programme (NCAP). These changes include new testing requirements for certain crashes not previously addressed 86 | AutoPartsAsia | DEC’ 15 / JAN’ 16

by NHTSA and an alternative rating scheme. Global Automakers hopes that changes made to NCAP are done through a thoughtful, datadriven process that leads to real world safety improvements, and provides consumers with clear and accurate information to enable more educated buying decisions. Global Automakers shares NHTSA’s commitment to advancing vehicle safety, and believes NCAP is an important tool for increasing consumer awareness of vehicle

crash prevention and protection technology. The Association of Global Automakers represents international motor vehicle manufacturers, original equipment suppliers, and other automotive-related trade associations. The association works with industry leaders, legislators, and regulators to create the kind of public policy that improves vehicle safety and encourages technological innovation that protects environment.

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First in B2B space connecting suppliers globally www.autopartsasia.in Asian Business Media LLP Regd/Marketing Ofce: 501/502, Imperial Plaza, Corner of 27th & 30th Road, Near Nilgiri Garden, Bandra (W),Mumbai - 400 050 INDIA Phone : +91-22-2640 0829, 2640 0735 Fax : +91-22-2641 1894 Email: info@abm.net.in Editorial Ofce: 39/3993- B7, Ground Floor, Vantage Point,V.R.M. Road, Ravipuram, Kochi - 682 016. INDIA Phone: +91 0484 - 2356284 Email: editorial@abm.net.in Chennai Ofce: 22/37, 1st Floor, Karpaga Vinayagar Koil Street, Alandur, Chennai - 600 016 INDIA Phone:+91 9940172323, +91 044 42641425 deva@abm.net.in

US Correspondent: Dr Louis P Rumao, Email: louis.rumao@yahoo.com | China: Ela Liu, Email: liut@chrubber.com, expo@chrubber.com | European Representative: John Stone Email: john.stone@sapphire-media.co.uk | Australia: Jacob Cherian, E-mail: ausker@auskergroup.com.au | Japan: Shinichi Kato, Email:shinichi.kato@rubberstation.com | Sri Lanka: P P Perera, Email: ppperera1946@gmail.com | South East Asia: A. Divakaran A.D.Nair, Email: aaps_avico@yahoo.com | Thailand: Ms Somruetai Patana-anek (Mott) Email: somruetai.patana-anek@busgum.com

Publishers of: TRACKING THE TYRE WORLD

GLEANINGS - International

Connected Car To Boost Customer-OEM Link APA Bureau

uch of the focus on the connected car is around infotainment, location-based services, and providing big data to the OEM. Another aspect that cannot be overlooked is the opportunity it provides to enhance the customer’s relationship with the OEM. A new report from the In-vehicle UX (IVX) group at Strategy Analytics has investigated consumer interest and preferences for sharing vehicle fault messages, receiving vehicle service and maintenance reminders, and receiving vehicle health reports.

Surveying consumers in the US, Western Europe, and China, Strategy Analytics found that these services provide great benefits for consumers, OEMs, and dealers alike. Consumers have convenient access to vehicle information either in-vehicle or via a mobile device; and in the case of faults, more knowledge about the issue with which to communicate to the service centre. The majority of respondents in the US and China were interested or very interested in each feature surveyed, while consumer interest in Western Europe was strong for

several such services. Importantly for dealers, consumers were more likely to want to share vehicle data with dealers than they were with independent garages. Chris Schreiner, Director, User Experience Innovation Practice (UXIP) and report author said, “The challenge for OEMs when providing these services is to increase user awareness and make it easy for the consumer to receive and access the information. The more pertinent the information provided, the more likely that consumers will be connected to their cars when outside of them.”

Mercedes-Benz To Capitalise Employees Age Gap APA Bureau

ercedes-Benz is launching a crosssite initiative that promotes the successful cooperation between young and experienced employees in the production organisation. “We promote a corporate culture that sees demographic change as an opportunity. That’s why we are reinventing work in production. This is an important step in the strategic realignment of the global production network of MercedesBenz Cars”, according to Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Manufacturing and Procurement. Michael Brecht, Chairman of the General Works Council at Daimler AG, said that, “We want all of our employees to be able to work with

88 | AutoPartsAsia | DEC’ 15 / JAN’ 16

us in good health until retirement and for the many generations at Daimler to benefit from each other”. A variety of generations also means a variety of experiences, perspectives and new ideas. The demographics initiative entitled ‘Y.E.S. – Young, Experienced, together Successful’ aims to promote collaboration between young and experienced employees in the passenger car production organisation of Mercedes-Benz and, for the first time, to create consistent standards for all plants throughout Germany.

Implementation Modules Y.E.S. provides answers to the demographic challenges in the form of three modules: The first module is a scientifically-supported

programme in which managers are made more aware of the need to promote successful collaboration in mixed-age teams. The second module is called the demographic-mirror. It is used as a standardised measuring and control device for creating transparency about the current situation at Mercedes-Benz Cars sites with regard to the age structure and demographic-related measures. As the third module and public platform serves the interactive exhibition ‘EY ALTER – you get to know yourself’ which aims at a change in awareness regarding to the subject ‘age’. The exhibition is not only for employees, but also for the public giving new ideas about age, daily life and workplace.

GLEANINGS - International

Continental Creates Intelligent Car Windows APA Bureau

ontinental will present a demo vehicle in which all windows can be darkened at the touch of a button. “Intelligent Glass Control” uses special films which are inserted into the glass and which change their transparency through electric control signals. “The selective, incremental darkening of the side and rear windows, and parts of the windshield, offer increased comfort for passengers and make driving safer,” Andreas Wolf, head of Continental’s Body and Security business unit,said. A typical exampleis, a low sun on the horizon; the driver’s hand instinctively goes from the steering wheel to the sun visor; this impairs visibility and decreases briefly the control of the vehicle. “In future such situations can be detected in advance, and the windows could darken automatically before the event even occurs”, he said.

Saves Energy By using these films, the solar radiation can be reduced more effectively than with other technologies. “This means that we can keep the heat out of the vehicle and reduce the interior temperature,” Wolf said. This relieves the airconditioning unit, which can then be smaller, more energy efficient, and therefore much lighter. The added weight of the sun visors and mechanical blinds is removed, with positive effects on the environment. “Our calculations have shown that the CO2 emissions are reduced by a good four gm per km thanks to these measures, thus increasing the range of electric vehicles by around 5.5 percent,”he said. Darkening also enhances privacy. “If the vehicle is parked, the windows darken automatically, so the inside of the vehicle cannot be seen from outside.” Intelligent Glass Control

also gives designers new options.

Special Film Films in which embedded particles can be aligned when a voltage is applied, and which can be used for targeted darkening of the window, have been available for a long time. So far this technology has been feasible only in the roof

area for a small number of highend cars. Engineers at Continental are demonstrating the intelligent activation of the “Suspended Particle Device” film technology also for side and rear windows and the windshield for the first time in a test vehicle. Due to legal requirements, however, initially it is shown only here in the permitted area of the sun visors. This production-ready film technology is based on embedded particles, which arrange themselves randomly when unpowered and darken the window from outside, while retaining transparency from inside to outside. If a voltage is applied, the particles systematically align themselves in parallel, so that the window becomes permeable to light in both directions. The connection to the vehicle system enables the windows to

lighten automatically when you approach the vehicle with a key or smartphone,” Wolf said.

Cost-intensive This film is still cost-intensive for mid-range vehicles with large glazed areas. However, due to more promising developments with initial applications in the

mobile area, it is anticipated that the prices will quickly drop. Other alternatives to film technology are basedon liquid crystal polymers or electrochromism. The latter uses the ability of molecules and crystals to change their optical properties under the influence of an electric field or a current flow. This technology is deployed in the car to darken the interior and exterior mirror and to prevent glare effects. The disadvantage of larger surfaces is the high energy requirement needed to achieve short switching times. The essential know-how is in the software and the intelligent connection to the vehicle system. “Today it is just a question of when intelligent glass is coming. At Continental we use our knowhow for the entire system and can therefore integrate the desired functions into our electronic control units”, Wolf said. AutoPartsAsia | DEC’ 15 / JAN’ 16 | 89

GLEANINGS - International

Ford Suit To Show

Dangers Of Drug Driving

CHN E T CH

According to a European study, drivers who get behind the wheel after taking drugs are up to 30 times more likely to be involved in a severe crash. Despite the risks, one in 10 people say they have accepted lifts from people they believe have taken illegal drugs.

“We know that some drugs can cause trembling hands, so we incorporated into the suit a device that creates just such a tremor,” Gundolf Meyer-Hentschel, CEO of the Meyer-Hentschel Institute, said. “Drug users sometimes see flashing lights in their peripheral field, an effect recreated by our goggles, while imaginary sounds are generated by the headphones. Additionally, the goggles distort perception, and produce colourful visual sensations – a side effect of LSD use.”

ZF TRW’s Centre Airbag To Protect Passenger From Side Impact APA Bureau

F TRW, the Active and Passive Safety Technology Division of ZF AG, has developed a new airbag that is designed to help vehicle manufacturers improve side impact protection. The centre airbag is integrated into the inner side of the seat back and deploys to help protect the head, shoulder and torso areas of occupants in the front seat. The centre airbag helps to protect occupants in ‘far-side’ and ‘nearside’ crashes by deploying a bag cushion between the driver and front seat passenger. In the event of a far-side impact, where an oncoming vehicle or object strikes 90 | AutoPartsAsia | DEC’ 15 / JAN’ 16

the opposite side of the vehicle to the driver with sufficient force, the centre airbag helps keep the driver in place. It can minimise side displacement of the driver and reduce the risk of interaction of the driver with the front seat passenger or surrounding structural vehicle interior parts. Dirk Schultz, global engineering director, ZF TRW Inflatable Restraints Systems, said: “The risk to far-side occupants during side impact crashes is significant. Accident research shows that in the US, nearly 30 percent of side impact fatalities involved far side events, and in Germany, nearly 30 percent of severely injured occupants in

side crashes resulted from far side collisions.” The centre airbag module is equipped with a hybrid inflator and uses one-piece-woven bag or sewn cushion technology. The modules can be designed to meet the many different OEM vehicle design choices including a tether mechanism which promotes a triangular shape upon deployment. “We are experiencing rising interest in this new airbag technology and Euro NCAP is currently assessing new side impact test protocols for 2018 and beyond,” Schultz said. “If implemented, we believe that many new vehicles could require far-side airbag modules.”

Y Y

“Driving after taking illegal drugs can have potentially fatal consequences for the driver, their passengers, and other road users,” Jim Graham, Manager,Ford Driving Skills for Life, said. “We have already seen how the Drink Driving Suit has a dramatic effect on those who wear it behind the wheel, and are confident that the Drug Driving Suit will have a similar impact.”

T ECH T Y

Dangers Of Drug Driving

Like the Drink Driving Suit that Ford last year incorporated into the DSFL programme, the new Drug Driving Suit simulates the effects of reduced mobility, vision and coordination with padding and ankle weights, goggles and headphones. The team also introduced new features that simulate effects that are specific to illegal drug use.

The new Drug Driving Suit has been incorporated into Ford Driving Skills for Life (DSFL), the awardwinning young driver programme that has provided training to more than 500,000 people around the world through hands-on and online tuition since its inception 11 years ago. Young drivers will have the opportunity to experience the suit,

and also receive hands-on training covering skills including hazard recognition, vehicle handling and distraction awareness.

ord Motor Company has created a unique suit to show young people the dangers of driving under the influence of illegal drugs.Ford developed the suit together with scientists from the Meyer-Hentschel Institute in Germany to simulate some of the effects of drugs such as cannabis, cocaine, heroin, and MDMA (commonly known as Ecstasy). These include slower reaction time, distorted vision, hand tremors and poor coordination.

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World’s leading rubber publication with focus on Asia Updates you with the latest happenings in the ever-expanding rubber world. The complete magazine on rubber covering the entire gamut of the rubber industry A household magazine of rubber planters, traders, processors and rubber products manufacturers. Easily navigable website and digital edition, www.rubberasia.com, breaking industry news regularly.

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GLEANINGS - International

McLaren Ends P1 Super Car Production APA Bureau

he final chapter in the production of the McLaren P1 has been written as the 375th and final example was completed, bringing the curtain down on the most technologically advanced and dynamically accomplished supercar ever made. From launch, the groundbreaking model was designed with one key goal: to be the best drivers’ car on road and track. Since headlining the debut motor show appearance for McLaren Automotive at the 2012 Paris Motor Show as a design study, the first model in the McLaren

Ultimate Series has been writing headlines, breaking lap times and thrilling owners the world over. Production commenced from the summer of 2013, with all cars sold prior to the first car being delivered, and the first car – finished with Ice Silver paintwork and extensive levels of visual carbon fibre – rolled off the production line during the 50th anniversary celebrations of McLaren in September 2013. A fitting tribute to Bruce McLaren; the man whose dream it was to produce the ultimate drivers’ car. Following this, every car was custombuilt to the exacting specifications of its owner, in consultation with the team at McLaren Special Operations 92 | AutoPartsAsia | DEC’ 15 / JAN’ 16

(MSO), ensuring that no two cars are the same. Running at full capacity, the bespoke Ultimate Series production line within the McLaren Production Centre (MPC) finished one car daily, with each individual model taking 17 days to complete on average. The final production example of the McLaren P1 is finished extensively in stunning pearlescent orange, achieved through a unique tinting process. The colour echoes the shade of the 64th and final McLaren F1 roadcar, chassis #075, which

went on to inspire Volcano Orange, available today across the McLaren Automotive range. It features subtle styling elements in raw carbon fibre weave, with the finish only-visible externally on the splitter, diffuser and the aerodynamic blades along the lower body, while the superlightweight wheels are finished in silver. A blend of refinement and purposeful intent is evident inside the cabin with bespoke styling touches by the team at McLaren MSO including gloss black detailing for the switchgear, instrument bezels and air conditioning vents. The lightweight carbon fibre-shelled racing seats include further MSO craftsmanship,

with the final McLaren F1 roadcar again the inspiration for the final design. Upholstered in black and orange Alcantara, the contrasting details are carried across to the stitching on the steering wheel. Mike Flewitt, Chief Executive Officer at McLaren Automotive,said: “The McLaren P1 has achieved more than we ever expected of it since it was first previewed little over three years ago, both as a new generation of supercar, and in enhancing the McLaren brand globally.As the direct ancestor to the fabled McLaren F1, and the first in a new breed of hybrid-powered supercars, it had big shoes to fill, and it has more than succeeded. It has established itself as a true contender, proving to be more than a worthy rival on both road and track against longestablished rivals. It has done a fantastic job of becoming the halo product for the McLaren Automotive brand as we have grown the business into the three-tiered, profitable outfit that we are today”. Combining a highly efficient petrol engine and lightweight electric motor, the McLaren P1 was the first of a new breed of supercars, debuting in production form at the 2013 Geneva Motor Show. The strictly limited-production supercar was the first model in the exclusive Ultimate Series, which crowns the recently announced three McLaren model tiers, above the Super Series and the Sports Series. It rewrote the rulebook and challenged what people believed was possible, as the iconic McLaren F1 had done 20 years previously.

GLEANINGS - International

Plugvolt Fosters Global Efforts To Develop Energy Storage Solutions APA Bureau

he latest advances, challenges and opportunities for energy storage systems used in grid storage and xEV automotive applications were discussed at a recent Battery seminar organized by PlugVolt in association with NextEnergy in Detroit, Michigan, USA. Plugvolt is involved in the business of promoting and fostering joint development efforts in advancing battery and alternative energy storage technologies. It is a leader in delivering interactive online webinars and seminar events to promote global development efforts in advancing energy storage technologies. NextEnergy is a leading accelerator of advanced energy technologies, businesses and industries in the US. As a non-profit organisation, NextEnergy drives technology demonstration and commercialisation; delivers industry and venture development services; and provides an authoritative voice in the public sector. The PlugVolt Seminar included experts from more than 30organisations. It covered mobile and stationary energy storage initiatives, materials science and R&D advancements, cuttingedge developments in ‘big data,’ and updates from multinational stakeholders. “The growing interest, participation and support shown to our seminars by some of the world’s leading utilities, global automotive OEMs, Tier-1 system developers, battery manufacturers, suppliers and researchers are impressive,” JC Soman, Director of Marketing at PlugVolt, said. “NextEnergy was a great location for this event. They’ve done remarkable work in the energy storage and electric vehicle space. Our event offered facility tours to attendees to demonstrate some

ideas of what could be done on a larger scale if the right development partnerships are formed,” he said. The tours highlighted NextEnergy’s unique testing and validation assets. “By sharing our space and some of our demonstrations, we hope to inspire future collaboration to advance energy storage solutions in the utility and automotive markets,” Kelly Jezierski, Director, Energy Storage at NextEnergy, said. The campus includes NextHome eight laboratories, ‘V2X’ (vehicle-to-home, -building, -infrastructure and -grid), and energy storage technologies. NextHome is a residential ‘living lab’ space combining smart home, distributed generation and more efficient direct current (DC) technologies, to show how a ‘home of the future’ may function and feel. Nextek Power Systems showcased the DC power distribution and lighting systems. And DTE Energy discussed its community energy storage project in collaboration with NextEnergy, looking at distributed generation assets and secondary use of xEV batteries.

New Methods Newly added was the ‘Role of Software Analytics’ session, moderated by Roland Kibler, NextEnergy’s Chief Technologist. “Siemens, Johnson Controls, Voltaiq and Oak Ridge National Labs presented methods to help optimise the choice of battery applications based on usage profiles, including thermal modelling, calendar life predictions, state of charge, failure

modes, and performance of a new 3-D electrode,” Kibler said. ‘Recent Battery Manufacturer Updates,’ another session, was moderated by Dan Radomski, NextEnergy’s VP of Venture and Industry Development. This featured A123 Systems, XALT Energy, Boston Power, Cap-XX and Navitas Systems. “Demand for electrical storage is increasing over a wide range of markets. Manufacturers are responding with an equally wide range of answers, like low voltage (≤48V) systems, super-capacitors for start-stop cranking, additional chemistries (LTO electrodes), and 6T military format alternatives,” Radomski said. Dave Hurst, NextEnergy’s Director, Market Analysis, moderated the session on ‘Automotive Tier-1 System Developments,’ and Jezierski moderated the others. Jean Redfield, President and CEO of NextEnergy said, “We are proud of having collaborated with PlugVolt on their October 2015 Battery Seminar. PlugVolt has been an excellent partner and does an outstanding job attracting leaders in the advanced energy storage sector to their events.” Hurst said, “Whether it’s BASF with increased nickel cathode materials or University of Michigan’s solid state electrolyte, the materials industry is making significant investments researching the next generation of batteries and increasing specialisation of materials to meet unique challenges in energy storage.” AutoPartsAsia | DEC’ 15 / JAN’ 16 | 93

CALENDAR

Vehicle Electronics and Powertrain Technologies Forum, 3-4 Dec, 2015 Shanghai, China SAE; Sherry McCaskey kramer@sae.org http://www.sae.org/events/vept/ Automechanika Shanghai 2-5 Dec, 2015 National Exhibition & Convention Centre Shanghai, China Messe Frankfurt (HK) Ltd auto@hongkong.messefrankfurt.com www.automechanika.com AAITF (Auto Aftermarket and Industry Trade Fair) 09-11 December 2015, Impact Challenger Exhibition Centre, Bangkok, Thailand, Exhibitions India Group Ph:011-4279 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

94 | AutoPartsAsia | DEC’ 15 / JAN’ 16

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 China International Automotive Aftermarket Industry & Tuning Trade Fair Shenzhen Convention & Exhibition Centre, China 26-28 February 2016 Exhibitions India Group Ph:011-4279 5000 Email: amanpreets@eigroup.in www.comnetexhibitions.com Automechanika Istanbul 7-10 April 2016 TUYAP Fair, Convention and Congress Centre, Beylikdüzü / Büyükçekmece in Istanbul, Turkey Hannover Fairs Turkey A.Ş. Tel +90 212 296 26 26 can.berki@turkey.messefrankfurt.com www.automechanika-istanbul. tr.messefrankfurt.com ExpoINA PAACE Automechanika Mexico City 13-15 April, 2016 Messe Frankfurt, Inc. Telephone +1 770.984.8016 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 – 04 May 2016 Exhibitions India Group Ph:011-4279 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 MIMS Automechanika Moscow 22-25 August 2016 Expocentre, Moscow, Russia Marketing Director. Technical fairs. Tel + 7 495 649 87 75 ext 124 nadezhda.fomina@russia.messefrankfurt.com

Phone: +54 11 4514 1400 E-mail: automechanika@argentina.messefrankfurt.com www.automechanika.com.ar

Advertisers’ Index A Alsaeedi 9 Atlantic Grease & Lubricant

Auto Expo 2016

Autoparts Asia

Auto Show, Pune

C Continental

Back Inner Cover

D DESMA 1

E Elgi Rubber

Elofic

F Far East Enterprises

Back Cover

G Gold Seal

I IMTMA 19 Indian Rubber Expo

Indonesia 37 IRMRA 43

M Manatec 27 MSC Software

P Polymer & Tyre Asia

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

Automechanika Buenos Aires 9 – 12 November 2016 La Rural Trade Centre, Buenos Aires, Argentina Indexport Messe Frankfurt SA

Omron Automation

69 5

R Rubber Asia

Rubber Tech Expo

Sankar Sealings

Front Inner Cover

AutoPartsAsia | DEC’ 15 / JAN’ 16 | 95

AUTO LAUGH

Mechanics Of Life

I 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

closely listen to two people. I take their comments and observations seriously. One is my doctor and the other is my regular auto mechanic.

I have full faith in both. Often my friends would warn me not to take both so seriously or follow their advice without applying my mind. But my trust in them continues rock-steady all these years. I do apply my mind and observe the surroundings closely. The other day I went to a newly-opened supermarket to fetch prescription medicine. I realised that I had to walk a long way to reach the pharmacy section located at the extreme back.

pastures. I trust him as I trust my doctor. Despite the sophisticated high-tech diagnostic tools that are available in modern garages, I still go to the ramshackle garage of my mechanic. I admire his knack to trace the fault and rectify it quickly and economically. He listens to the murmur of the engine like my doctor who feels my heart beat pulse and treat me without recourse of MRI or CT-Scan. Like my doctor, my mechanic uses his years of wisdom to fix the problem. According to a recent report by a network of automotive professionals, more than 70 per cent of all car owners suspect that they are always taken for a ride by garages and

While a sick person has to walk such considerable distance, the healthy shoppers need to take only a few steps to fetch cigarettes. At supermarkets, cigarette dispensers are on the store front. I wondered whether managers want to welcome only young shoppers and banish the sick and ailing to the back! The question that haunts me is this: Why do supermarkets make the sick walk all the way to the back of the store to get their medicine while healthy people can buy cigarettes at the front? It is such a contradiction that I have noticed on many fronts. Why do people order double cheeseburgers, large fries, and a diet coke? Why is it that old women are frightened to ask for or share sex but old men are ready to try their luck? Why do banks leave vault doors open but chain the pens to the counters? Why do we leave cars worth thousands of dollars in our driveways and put our useless junk in the garage? We have never heard about a psychic, numerologist or astrologer winning a lottery although they proffer advice to us on becoming prosperous and wealthy. Such contradictions we see every day: The word ‘abbreviation’ is not abbreviated and the time of the day with the slowest traffic is called rush hour. Such thoughts take me to my mechanic. I have good relations with him for a very long time. Since the day I took possession of a second-hand car several decades ago and up to my recent acquisition of a new generation automatic, I have not left my mechanic for new

96 | AutoPartsAsia | DEC’ 15 / JAN’ 16

Shilpa Hari

more than 40 per cent know they are being overcharged. If you don’t have a friend who owns a car similar to you, checkout by going to the mechanic and ask him first for a test drive after routine oil changes, tyre rotations, and wheel alignments. Trust your intuition because by that time you would know whether he is going to rip you off. Check out whether he is working on commission as that would certainly encourage him to insist on unnecessary replacement of parts on which he gets a kick-back. Trust your doctor and mechanic. Your life will run smoothly.

AAPEX Accelerates Aftermarket Advances

RNI No. MAHENG.2015/64732

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Vol.No.1 Issue No 8 & 9 Dec’ 15 / Jan’ 16 | US$ 20 `200

AUTO PARTS ASIA | Dec’15 / Jan’ 16 RNI No. MAHENG.2015/64732

US, China Propel

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SEMA Steals Auto Enthusiasts’ Hearts

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