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VOICE OF THE AUTOMOTIVE SUPPLIERS
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Decisions For Tomorrow
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AN INTEGRATED APPROACH Integration BSVI Compliance The Turkish Components Sphere Brose India:for Relying on Speed l l ZF WABCO Shareholding Acquisition /autocomponentsindiaofficial
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Content April 2020
COMPONENTS
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Cover Story Supply Chain Crisis Management
Chain Decisions 20 Value For Tomorrow The Deloitte study on ‘The Future of Automotive Value Chain 2025 and beyond’ calls for bold actions.
AUTO COMPONENTS INDIA n APRIL 2020
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Marelli Partners Transphorm End of IFEMA-Automechanika Partnership Valeo Universal Flat Wiper Blades STMicroelectronics Battery-Management System ATMA Chairman and Vice-Chairman Re-elected Diploma in Mechanical Engineering by Maruti Suzuki Gandhi Automations Wins Big Tepex for Lightweight Construction Mega Safety Campaign by Tata Motors ZF Launches Industry-First Front Electric Park Brake First ACMA Auto Components Aftermarket Expo in Patna
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Yamaha Reengineered Volkswagen Tiguan Allspace
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From being considered a healthy alternative to China in the aftermath of the Covid-19 epidemic, the Indian automotive industry was faced with an uphill task of crisis management.
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Integration for BSVI Compliance
36 Business Filings
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Anand Groups’ Collaborative Approach
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Flash Electronics Technical Integration Brake
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The Turkish Components Sphere
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Vol 7 Issue 01
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he world has learnt the lessons of not having a strong supply chain in the aftermath of Covid-19. If its not strong enough, plugging ANNIVERSARY the holes during a pandemic is even far more challenging as seen across automotive hubs globally. Most countries have learnt this lesson the hard way. It is important to be better prepared for future large-scale crisis. Among key commandments are to start with caring for your critical resource—your people. Crucially, it is good to maintain a healthy skepticism by validating sources of information through resources deployed for better decision making. The foresight to expect the unexpected is invaluable too when faced with such adversities. China’s wide range influence on global automotive hubs is there for all to see. Most found inventory levels to meet only short term requirements. Creating a comprehensive emergency operations centre with a detailed, more deeper structure is also very necessary. Companies with predetermined action plans for communication and coordination, designated roles for functional representatives, protocols for communications and decision making, and emergency action plans involving customers and suppliers found themselves to be better placed. Map your upstream suppliers several tiers back to open up a chain of alternatives. You are in the best position to gauge your critical vulnerabilities and spread the risk. There couldn’t be a better way to utilise the lockdown by revisiting the drawing board. It is time to better equip our supply chains.
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Views and opinions expressed in the magazine are not necessarily those of Next Gen Publishing Pvt. Ltd. Next Gen Publishing Pvt. Ltd. does not take responsibility for returning unsolicited manuscripts, photographs or other material. All material published in Auto Components India is copyright and no part of the magazine may be reproduced in part or full without the express prior written permission of the publisher Printed by Marzban Jasoomani Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.. Published by Marzban Jasoomani on behalf of Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Printed at Spring Graphics, 215 & 238, Shah & Nahar Industrial Estate, Sun Mill Compund, Lower Parel (West), Mumbai 400013, India. Published at Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.
All readers are recommended to make their own independent enquiries before sending money, incurring expenses or entering into commitments in relation to any advertisement appearing in the publication. Auto Components India does not vouch for any claims made by advertisers for their products and services. The editor, publisher, printer and employees of the publication shall not be held liable for any consequence in the events of such claims not being honoured by the advertisers. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only. Editor Ashish Bhatia
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AUTO COMPONENTS INDIA n APRIL 2020
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Executive Editor Ashish Bhatia
AU
VOICE OF THE AUTOMOTIVE SUPPLIERS
5
Newscast
Marelli Partners Transphorm Marelli (India) Private Limited has partnered with Transphorm Inc. In a move claimed to boost the company’s investment in Electric Vehicle (EV) technologies, through the partnership, Marelli aims to acquire valuable access and insights pertaining to the further development of EVs. With a focus on power converters, onboard chargers and inverters for electric and hybrid vehicles, the two companies will work to shape up and improve product development to ensure improved performance. They will also
work to enhance the efficiency of power electronics and in turn lower costs of EV acquisition. Relying upon Transphorm’s experience with GaN devices, Marelli is looking to grow through innovation within its electric powertrain business. Through the mutual exchange of knowledge and information, the two companies aspire to provide automotive and EV power conversion solutions including On Board Chargers (OBCs), DC/DC converters and powertrain inverters.
AUTO COMPONENTS INDIA n APRIL 2020
End of IFEMA-Automechanika Partnership
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The eight years old IFEMAAutomechanika partnership came to an end recently. With the two brands credited for organising Messe Frankfurt as a licensed event under the Automechanika brand since 2011, Michael Johannes, Vice President, Messe Frankfurt - Mobility and Logistics division, expressed regret over IFEMA’s decision to end the partnership. “Messe Frankfurt will now be looking for more opportunities in the Spanish market to spread awareness about the Automechanika trade fairs around the globe,” he stated. Claimed to have witnessed participation from 132 Spanish exhibitors over the past three events, it is optimistic about its cooperation with Sernauto, reckoned as the leading association for aftermarket support. www.autocomponentsindia.com
Newscast
Valeo Universal Flat Wiper Blades Valeo has launched the universal flat wiper blades in India aimed at the OEMs and the aftermarket initially. To be manufactured at Valeo’s Vallam site, in Chennai, the plant has an installed capacity of 40,000 units per annum. Expected to become a standard fitment in new vehicles, the blades are claimed to enhance driver visibility by maintaining good contact with the
windshield. Especially when driving at high speeds of over 160 km per hour. The blades are also said to be capable of imparting uniform pressure all over the windshield. They are designed
AUTO COMPONENTS INDIA n APRIL 2020
STMicroelectronics Battery-Management System
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STMicroelectronics’ (ST) new BatteryManagement System (BMS) claims to offer enhanced reliability, safety, driving range, and cost-effective operations of Electric Vehicles (EVs). Through the L9963 controller chip, a first-ofits-kind product, it is claimed to eliminate cellsynchronisation delays associated with lithium-ion batteries. The advanced BMS controller is claimed to offer the best voltage accuracy for the longer drive ranges and battery life. Its temperaturemonitoring inputs are said to enhance overall safety levels. The chip works such that 14 stacked battery cells in the battery stack are monitored. Voltage with accuracy greater than two megavolts in the 1.7V–4.7V range are measured to maintain superior cell condition. The capacity to monitor up to seven external temperature sensors is said to enhance the system’s ability to detect fluctuations and maintain overall stability. Built with a comprehensive fault-detection and notification functions to meet automotive safety standards, the chip also allows hot-plugging without the external Zener diodes required for protecting the BMS. www.autocomponentsindia.com
to be lightweight; offer a lower drag force for reducing the motor torque. The design is said to facilitate higher durability and optimal cleaning mechanism with the considerably lower noise levels. Suited for Indian weather conditions, the blade design factors in high heat and humidity. It can also withstand severe snowfall among lower operating temperatures.
ATMA Chairman and ViceChairman Re-elected KM Mammen, Chairman and Managing Director, MRF Ltd. and Anshuman Singhania, Deputy Managing Director JK Tyre & Industries were unanimously re-elected as Chairman and Vice-Chairman of Automotive Tyre Manufacturers’ Association (ATMA), the national industry body for automotive tyre sector in India. Serving as Chairman and Managing Director of MRF since 2003, KM Mammen is credited for helping the company clock an Rs.15000 crore (over USD 2.2 billion) turnover and attain the ranking amongst top 20 tyre companies in the world. He has also held various executive positions in business associations in the country including as President of the Indo Australian Chamber of Commerce. He is also an executive member on the board of FICCI. Anshuman Singhania, ATMA Vice Chairman, as a graduate from Oxford Brookes University, UK and an alumnus of London Business School started out young with leadership qualities. From working on a shop floor as an apprentice to holding several positions in planning, production, product development, quality control, stores and purchase, finance as well as Sales and Marketing. Singhania is credited for playing a key role in implementing the latest technologies in the manufacturing process at JK Tyre. Among other changes, the ATMA Core Group has been reconstituted with Rajesh Dahiya, Vice President Marketing, Sales & Service, Apollo Tyres Ltd as the new convener of ATMA Industry, Public & Economic Affairs (IPEA) Group that looks at developing new markets and increasing export competitiveness of the Indian tyre industry. The ATMA Supply Chain & Resources (SCR) Group that works to ensure a fair and sustainable supply of raw materials to the industry will now be headed by Mohan Kurian Vice President – Material, MRF Ltd. Tom Thomas, Executive Director – Tech. & Projects, CEAT Ltd, has taken over the reins of ATMA Technology, Environment, Safety & Standards (TESS) Group. The policy formulation aspects of the industry will be taken care of by Sanjiv Saxena, Sr. Vice President – Corporate Accounts, JK Tyre & Industries as the convener of ATMA Government Affairs & Legislation (GAL) Group.
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for more information email us on info@stepperindia.com
Newscast
Diploma in Mechanical Engineering by Maruti Suzuki In line with the Government’s ‘Skill India’ movement, Maruti Suzuki Training Academy has introduced a diploma course in Mechanical Engineering with specialisation in tool and die design for its associates. With a duration of three years, the course comprises of six semesters including 26 subjects, and minor and major projects. The course objective is to help students with specialised skill sets like die design, die fitting and maintenance related skills. With a purpose of enhancing the operations carried out in the tool and die shops, Maruti Suzuki India Limited (MSIL) will offer the course at a nominal fee of Rs.4500 per year confirmed Kenichi Ayukawa, Managing Director and CEO, Maruti Suzuki India Limited. MSIL has earmarked an estimated Rs.80 lakh towards heads including procurement, installation and commissioning of machinery. Having launched the course at its Centre of Excellence (CoE) at Government Polytechnic, Manesar in collaboration with Haryana State Board of Technical Education (HSBTE), Maruti Suzuki wants to prepare a talent pool for the automobile manufacturing sector. In this regard, Maruti Suzuki India Limited (MSIL) and Haryana Government signed an MoU after receiving approval from All India Council for Technical Education (AICTE).
AUTO COMPONENTS INDIA n APRIL 2020
Gandhi Automations Wins Big
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Gandhi Automations Pvt. Ltd., won the ‘Automation Industry Leader’ Award at the IAFF Trade & Technology Exhibition, Conference And Awards. The company also won the ‘Automation Supplier of the Year 2020’ award at the 9th edition of the Manufacturing Supply Chain Awards. Striving to maintain its leadership in the Indian market and www.autocomponentsindia.com
sustain its growth in global markets, the company manufactures all kinds of entrance automation solutions and loading bay technology meeting in compliance with global standards. With a 70 per cent market share, the company is working to introduce standardisation in the door specifications by educating the end-users and offering clients best-
in-class quality and service. Offering the latest technology, claimed to conform to high safety standards, the company is known to have upgraded its systems through the use of AI. It is designing sophisticated systems that can be integrated with Building Management Systems to pave the way for easy operations on the fly.
VLC 200 GT
HIGH PERFORMANCE HARD MACHINING FOR GEARBOX PARTS PRECISE
DYNAMIC
PRODUCTIVE
COMPACT
Gearbox production with 12 tool position tool turret and internal/ external aluminum oxide/CBN grinding spindle.
HIGHLIGHTS + Reduced machining time: The combination of hard
pre-turning and finish grinding reduces machining time.
+ Maximum workpiece quality: A combination of the best technology and a single clamping operation is used to ensure the best workpiece quality.
+ Shorter process chain: By combining the different processes, the process chain can be shortened.
+ Maximum technological diversity: Internal and external grinding spindles, tool block holders or the time-tested EMAG turret equipped with 12 tool positions are available.
Technical data for the VLC 200 GT: Chuck diameter, max. 210 mm I Swing diameter, max. 270 mm I Workpiece diameter, max. 160 mm I Workpiece length, max. 100 mm I Travel distances X (total stroke from pick-up to turret) / Z 1,700 / 250 mm I Loading time (depending on clamping device) 6 – 10 sec. I Main spindle capacity: 40% duty cycle / 100% duty cycle, 22 / 18 kW I Main spindle torque: 250 / 202 Nm I Main spindle max. speed: 3,000 rpm I Spindle bearing dia., front: 110 mm
EMAG India Private Limited “Technology Centre” I No. 17/G/46-3 · Industrial Suburb I 2nd Stage · Yeshwanthpur I Bangalore · 560022 I Karnataka · India Phone Sales: + 91 80500 50163 (Sales) I Phone Service: + 91 80500 50165 I E-mail: sales.India@emag.com I www.emag.com
www.emag.com
Newscast
Tepex for Lightweight Construction
AUTO COMPONENTS INDIA n APRIL 2020
Lanxess India Pvt. Ltd. has launched the Tepex. A line of continuousfibre-reinforced thermoplastic composite materials, it paves the way for lightweight construction of structural safety components in the automotive segment. For instance,
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the use of Tepex in the insert of the child seat headrest reduces the weight by up to 30 per cent. Add to it, the component offers a good crash performance. Produced by a Particlefoam Composite Injection Moulding (PCIM) process, it is claimed to reduce
the number of parts in a component thus simplifying the entire process. Developed and produced by Lanxess subsidiary Bond-Laminates GmbH, Tepex is also said to hold good market potential especially for the future modes of mobility.
Mega Safety Campaign by Tata Motors
ZF Launches Industry-First Front Electric Park Brake
Tata Motors on the back of its Mega Safety Campaign drove a nationwide free safety check-up camp between March 1531, 2020. for its customers across more than 650 workshops. With the objective of celebrating the National Safety Month with its customers, the company through this campaign provided exclusive vehicle safety checkups to its customers. The services on offer included free foam wash for the vehicles, attractive discounts on labour, parts, lubricants, accessories and value-added services. The service check-up included the testing of the engine, clutch, transmission, brakes, steering, suspension, wheels and tyres, lights, ORVM, IRVM, horn, AC, seat, seatbelts and door locks for complete safety of the vehicle and the customers. In hindsight, the campaign also served as a platform to raise awareness amongst customers on road safety in collaboration with the RTOs across cities.
ZF has launched the first front Electric Park Brake (EPB) technology. Claimed to be ideal for smaller vehicles, it offers enhanced safety and comfort extending the company’s range of Electric Park Brake (EPB) systems to a wider range of vehicles. Eliminating the need to feature the classic handbrake lever or park brake pedal, it will help replace the manual lever by a compact switch, thus creating more space in the interior and offer greater flexibility for interior design. The start of series production is currently taking place in Korea and China. Said Manfred Meyer, Senior Vice President, Engineering for ZF’s Active Safe Division, “ZF’s Front EPB technology is a real industry innovation. Even manufacturers of small and very small cars can now use the EPB with all its advantages. In addition to the classic park brake function, the EPB also facilitates hill starts, for instance, with the Auto-Hold function. In city traffic or traffic jams, the braking system can significantly increase driving comfort thanks to the stop-and-go function. In addition, the higher static load distribution on the front axle supports enhanced safety for parking the vehicle on slippery slopes. ZF pioneered Electric Park Brake technology on the rear axle in 2001 and has supplied well over 75 million vehicles with EPB for world roadways.
www.autocomponentsindia.com
The Automotive Component Manufacturers Association of India (ACMA) recently held the first edition of the ACMA Aftermarket Expo in Patna. Held at Gyan Bhawan, Samrat Ashoka International Convention Centre, the exhibition was inaugurated by Ravi Shankar Prasad, Minister for Communications, Electronics & Information Technology and Law & Justice, Government of India and Member of Parliament, Patna Sahib. Supported by the Automotive Skills Development Council (ASDC), the first of its kind aftermarket (spare parts) expo in the eastern region brought together component manufacturers, sparepart sellers, dealers, workshop owners, technicians and mechanics on a common platform. Over 50 auto component manufacturers showcased their latest and best aftermarket products and technologies at the expo. Averred Vinnie Mehta, Director General, ACMA, “Apart from furthering aftermarket business in the eastern region, the expo will provide an excellent opportunity to spread awareness on the usage of genuine components and reduce the menace of counterfeits.” Stating that India, with highest road accidents at 4,50,000, has one of the highest road fatalities, opined Mehta, “There is an urgent need to curb usage of nongenuine and counterfeit spare parts, which can significantly reduce road accidents. That apart, standards need to be mandated for products sold in the aftermarket so that consumers get the right quality of products to
ensure safe vehicles and better usage experience.” According to Rama Shankar Pandey, Chairman, ACMA the event achieved its objective of providing business delegates and visitors an opportunity to understand the business dynamics of the aftermarket. It also gave them an understanding of the significant technological changes taking place in the automotive industry. With ASDC as its partner, complimentary training sessions were held for more than 1,000 mechanics and technicians to help them upgrade their skills through training imparted on repairing technically sophisticated vehicles. Some of the leading components manufacturers who participated in the expo included Indian Oil, Anand Automotive, Rane Group, Lumax Auto Technologies, Minda
Industries, Subros, JK Fenner, Elofic, Varroc Engineering, Shriram Piston & Rings, Federal Mogul, Steelbird, among others. The aftermarket business in Bihar and Jharkhand for auto components is estimated at Rs.3,000 crores (USD 428 million) - approximately 4.2 per cent of the total national aftermarket of Rs.67,491 crores. An estimated 155 automobile dealers, 1,000 auto component retailers and repair workshops/garages in the region are concentrated in cities like Patna, Gaya, Bhagalpur, Muzaffarpur, Munger, Ranchi, Jamshedpur and Dhanbad. Apart from these main towns, a large number of repair workshops/ garages are situated along the national and state highways in the sub-urban and rural areas making the first edition of the expo an important platform for the stakeholders of the region.
www.autocomponentsindia.com
Newscast AUTO COMPONENTS INDIA n APRIL 2020
First ACMA Auto Components Aftermarket Expo in Patna
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Mobilised
Yamaha Reengineered
Yamaha puts the spotlight on its BSVI compliance and technological upgrade with improved engineering. Story by: Deepti Thore
AUTO COMPONENTS INDIA n APRIL 2020
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www.autocomponentsindia.com
amaha has taken a slew of measures to upgrade. Testimony to it is the company’s BSVI compliance established with the multiproduct launch on December 19, 2019, in Chennai. The company then launched the BSVI compliant Ray ZR 125 FI, Street Rally 125 FI, Fascino 125 FI making a grand foray in the 125-cc scooter segment. The company also launched the MT-15 in the roadster segment and FZ 25 in the streetfighter segment. Reiterating Yamaha’s commitment towards attaining Bharat Stage VI compliance for its two-wheeler product portfolio with key technological upgrades to meet consumer expectations, commented Motofumi Shitara, Chairman, Yamaha Motor India, “The company is delighted to enter the 125-cc scooter segment so that with more power, new technologies and improved engineering, Yamaha can fulfil the passion of riding and adventure for scooter customers.”
Starting the production of its newly launched two-wheelers from January 2020, Yamaha has earmarked an estimated investment of 14 crores for the production of BSVI compliant vehicles. With its current 1.7 million units manufacturing capacity, Yamaha is claimed to have already invested an estimated 1500 crores over four years in its production facility. Confident of recovering from the economic slowdown, Yamaha according to Shitara is confident of the two-wheeler segment bouncing back soon after the transition to BSVI emission norms. Maintaining high performance and quality product standards, Yamaha is banking on its 125 cc scooter portfolio to win over the youth.
l Premium positioning
After launching ‘The Call of the Blue’ campaign in 2018 to maintain Yamaha’s global image of ‘excitement, stylish and sporty’, the company
l Fascino 125 FI
Powered by a BSVI compliant, aircooled, fuel-injected (FI), 125 cc blue core engine, the new Fascino 125 FI offers a peak rated power output of 8.08 hp at 6,500 rpm. It offers a torque of 9.7 Nm at 5,000 rpm. With a 30 per cent higher power output and a higher fuel economy of 16 per cent than the previous generation, the new Fascino is expected to create a pull. Among other attractive key features are the stop and start system, front disc brake with Unified Brake System (UBS), Smart Motor Generator (SMG) and the side stand engine cut-off switch. The Fascino is designed with classic European styling and features an all-new exterior design backed by highquality bodywork, newly designed headlight and new gauges. At 99 kg, Yamaha claims to have shaved off four kilograms in a lightweighting exercise. Ray ZR 125 FI and Street Rally 125 FI Powered by a BSVI compliant, aircooled, Fuel-Injected (FI), 125 cc blue core engine that produces a peak rated power output of 8.08 hp at 6,500 rpm and a torque of 9.7 Nm at 5000 rpm. In the disc brake variant, Yamaha offers the digital instrument cluster as a new feature. Yamaha launched its BSVI compliant, Ray ZR 125 FI and Street Rally 125 FI with a styling
Mobilised l Maxxis Tyres partners with YAMAHA
The Maxxis Group recently announced its partnership with Yamaha as its Original Equipment Manufacturer (OEM) partner. As per the partnership clause, Maxxis India will be producing tyres for the 125 cc, BSVI compliant scooter range including the Yamaha Ray ZR, Fascino and Ray ZR Street Rally 125FI. The scooters will come fitted with 90/90-12 M6307 front and 110/90-10 M6220 rear tyres. Street Rally 125 FI, on the other hand, will come with tyres specification of 90/90-12 M6309 on the front and 110/90-10 M6310 at the rear. The tyres are claimed to be suitable for both city driving and off-roading and high-speed touring. Available at select Yamaha and Maxxis dealerships across India, Maxxis tyres will be the OE fitment to Yamaha scooter with an objective to offer extra strength and safety to the Yamaha range of vehicles. With an aim to capture 15 per cent of India’s two-wheeler tyre market share in a five-year timespan, Maxxis tyres in collaboration with Yamaha plans to create a pull and subsequently new market for its tyre range. The company will especially focus on the penetration in rural markets of the country. concept of ‘Armored Energy’. With the sporty, sharp-looking headlight, class C compliant and the Y-shaped LED position light, both the scooters also successfully underwent a lightweighting process to knock off four kilograms. The fully digital instrument cluster, side panels designed to look like a rugged frame, block-pattern tyre, sporty coloured wheel stripes (front and rear) and side panels designed to look like metallic protectors lend motorcycle-like elements to the new Street Rally 125 FI.
l MT-15
The new BSVI MT-15 features the VVA engine for agile acceleration with model-specific ECU. An optimised secondary reduction gear ratio for snappy riding in town, Assist & Slipper (A&S) clutch for stress-free gear shifts, motard like riding position is claimed to offer a great deal of freedom on a tight, concentrated silhouette. The 282 mm front disc brake with single-channel ABS is claimed to offer
excellent stopping power. Known for its balance of torque and agility along with enhanced control postures and single-channel ABS, the new BSVI MT-15 gets a rear radial tyre which is standardised in MT-15. With a minimal-look, dynamic headlight, short tail and overall finish the unpredictable MT style come to the fore.
l FZ 25
Yamaha unveiled BSVI compliant FZ 25 along with the all-new FZS 25. The FZ 25 features a 249cc air-cooled, SOHC, four-stroke, single-cylinder engine on a lightweight frame (153 kgs) and dual-channel ABS. It has a peak rated power of 20.51 hp at 8000 rpm and a torque of 20.1 Nm at 6000 rpm. The new FZ 25 attracts with a feature bouquet of multi-function negative LCD instrument cluster, LED DRLs, class D bi-functional LED headlight, under cowling and side stand with engine cut-off switch. ACI — With inputs from Ram Kumar www.autocomponentsindia.com
AUTO COMPONENTS INDIA n APRIL 2020
with it’s ‘Blue Square’ initiative (in line with the 2020 strategy), a 4000 sq. feet outlet in Chennai, built for driving Yamaha’s premium positioning in India. The company expects to create a pull with premium motorcycles and scooters in the future with a strong network across the country. With the move, Yamaha aims to grow its market share from five per cent to 10 per cent by 2025. By expanding the Blue Square to 100 outlets in the year 2020, the company eventually plans to consolidate the 125 cc scooter market share and sports market share for the brand.
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Mobilised
Volkswagen Tiguan Allspace The Volkswagen Tiguan Allspace screams SUV offensive. Story by: Team ACI
AUTO COMPONENTS INDIA n APRIL 2020
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olkswagen India has kept its word. The company has launched the first of the four SUVs committed in India earlier this year with the remaining models expected to be launched in a phase-wise manner over a two-year time span. In line with the Volkswagen Group Strategy to go on a focussed SUV offensive, the company in India is banking on the globally successful sevenseater Tiguan Allspace. Together with the Tiguan, the company has sold an estimated 800,000 units in 2018 alone of the globally successful model. Averred Steffen Knapp, Director, Volkswagen Passenger Cars India, “It is premium, roomy, versatile and highly functional which fits all.� By 2025, Volkswagen aims to launch 30 SUVs in a combination of conventional and electric drives.
l Under the hood
The BSVI Tiguan Allspace launch comes days ahead of the implementation of Bharat Stage VI www.autocomponentsindia.com
norms. It is powered by a turbocharged fourcylinder, two-litre TSI BSVI compliant petrolonly engine, with a rated peak power of 187 bhp at 4200 rpm and a peak torque of 320 Nm at 1500-4100 rpm in line with the EU specifications. The engine of the Tiguan Allspace is mated to a seven-speed DSG 4motion transmission unit (dual-clutch automatic) and is claimed to be fuelefficient with a 60-litre fuel tank. A four-wheel drive is optional. The latter is aimed at optimising traction, and dynamically control the torque transfer to the wheels.
l Safety Matrix
Loaded with safety features, the Tiguan Allspace is built on the Modular Transverse Matrix platform (MQB) shared by the group brands with an aim to develop tailor-made models for special markets and at the same time to advance electromobility towards emission-free
Mobilised vehicles. The matrix platform stands for optimised efficiency, comfort, convenience, design and driving experience with the added assurance of best-in-class safety features. With around 20 innovations in the areas of safety and driver assistance customers can look forward to seven-airbags; Electronic Stability Programme (ESP) claimed to prevent the vehicle from destabilising in extreme conditions; Anti-lock Braking System (ABS) to prevent wheel block and facilitate ease of manoeuvrability; Electronic Differential Lock (EDL) to distribute optimal engine power to the wheels. Among other features are the seat belt warning, ISOFIX, and tyre pressure monitoring. The Park Assist function measures spaces on the side of the street. On finding a suitable parallel or perpendicular space, it takes over the steering to manoeuvre the vehicle into the spot.
l Design Matrix
A longer wheelbase measuring 2787 mm translates to roomier
Engine type Displacement (cc) Transmission Max. Power [PS (kW) @ rpm] Max. Torque [Nm @ rpm] Type Turning Radius (m) Front Rear Front Rare Size Kerb Weight (kg) Width (mm) Gross Vehicle Weight (kg) Length (mm) Height (mm) Wheelbase (mm) Front/Rear Track (mm) Fuel Type Tank Capacity (litres)
2.0L TSI 1,984 7-Speed DSG 4MOTION 190 (140) at 4,200 320 @ 1,500 - 4,100 Electromechanical speed-sensitive power steering 5.95 Disc Disc Independent wheel suspension with coil spring Independent wheel suspension by four-link axle 235/55 R181780 2410 4821 1839 1674 2787 1585/1574 Petrol (TSI) 60
interiors with an adequate place for everything. More knee room, and a luggage compartment of 340-litres ( extendable to 1274-litres). Interestingly, it takes just a flick of the foot under the rear of the vehicle to open the electric tailgate. Added
Knapp, “It is the first SUV that is being launched under Volkswagen’s SUV offensive strategy and suits the needs of every Indian customer. It is premium, roomy, versatile and highly functional. For instance, the active info display features analogue dial gauges that are virtual and allow driver access to customised information including driving dynamics, vehicle status, infotainment and assist functions located in between the speedometer and the rev counter. Overall the Tiguan Allspace scores high on the design front with a signature styling including a new hood and front grille. The front fascia of the Allspace is accentuated by the LED headlamps with DRL, LED ambient lighting and tail lamps, R18 alloy wheels and illuminated scuff plates complete with a panoramic sunroof which seems to be the flavour of the day. The BSVI Tiguan Allspace is being sold at Rs. 33.12 Lakh (Ex-showroom Mumbai). ACI www.autocomponentsindia.com
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Power Train Performance Steering Brakes Suspension Tyres and Wheels Weight Exterior Dimensions Fuel
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Value Chain Decisions For Tomorrow The Deloitte study on ‘The Future of Automotive Value Chain 2025 and beyond’ calls for bold actions.
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Story by: Ashish Bhatia
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imes are disruptive to the automotive ecosystem. The industry has debated this for years now with a broad consensus on the inevitability of aligning the automotive value chain. The challenge is that investment decisions have to be made today for the value chain of tomorrow. The production capacity and stability of the supply chain as per the Deloitte study ‘The Future of Automotive Value Chain 2025 and beyond’ has to be prepared well ahead
of time before the actual demand arises in the global automotive markets. Among approaches and tools to support automotive decision-makers are crucial factors to drive the future value chain developments. Be it the upstream or downstream of the value chain. In the case of the former part of the value chain, from R&D to outbound logistics, the study expects massive implications for assets, people, and supply structures. Applying the approach of
Cover story scenario-based business modelling: it identified four plausible setups of an Original Equipment Manufacturer (OEM) value chain expected in the year 2025. The results of these model calculations today are expected to help automotive decision makers challenge their own forecasts and strategic plans systematically. OEMs are expected to change the will significantly as the decisions taken today could have massive implications on future assets, employee numbers, and supplier structures across the automotive ecosystem. The need of the hour is bold actions from the stakeholders.
In the midst of a slew of historic changes, the future shakeup in the market, new business models, or a new value chain cannot be ruled out. The Deloitte study cites excellent opportunities for the customer, the environment, or for business. With the future said to be unpredictable and the redundancy of the workforce a possibility, the industry is faced with pragmatic questions like how can traditional automotive OEMs survive. The impact of the increasing importance to facilitate decision-making with the use of software and connected services on strategy formulation especially in times of uncertainty. The industry is required to take strategic measures according to the impact of the constitution of cars in the future on R&D capabilities. It requires suppliers to takes into account several relevant scenarios- selection including the composition of the likely asset structure. With the implications quantified to provide mobility and digital the best use case scenarios in order to help make relevant services, the need of the hour is to also upskill people such that they make educated decisions and support OEMs in their execution plans. For instance, engines will contain far fewer components in 2025 and beyond. combustion engines, implying a grave impact on the tier city-based workforce. www.autocomponentsindia.com
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Drivers for the next decade
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Development signposts
To facilitate decision-making the study outlines the need to project OEM profits in the face of uncertainty. It also draws attention to the essential models and KPIs in 2025 to gauge the implications on the value chain. Through Deloitte financial benchmark with sketches of possible value chain databases and forecast drivers, the company claims to be in a position to develop the transformation paths for OEMs. Modelling the income statements until 2025, and also addressing pain points. The industry could look to model the balance sheet expected along the way. It requires placing special emphasis on computing financial performance indicators, assets, people, and supply structures by prioritising the automotive value chain. The study emphasises the need to understand singular initiatives and in turn the impact on the overall financial success, stability, and workforce of a company as important value-additions at the time of having to assess different options. It is with a disclaimer that the financial modelling reaching so far into the future can never be 100 per cent accurate. However, obtaining an understanding of the orders of magnitude of such potential financial implications could be highly valuable for decision making.
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Scenario-based thinking
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Scenario-based thinking will be crucial for decision making. The future scenarios will be dependent on the direct and indirect impact on the future development of the automotive value chain. Grouped in the realm of social change, technology advancement, economic shifts, environmental trends, and political developments, the study evaluates these drivers in accordance with the degree of uncertainty and the future impact on the OEMs automotive value chain. It spans across R&D, procurement, manufacturing, or logistics. For instance, 3D printing is a high impact but uncertain driver according to the study. Deemed as having a potential impact on the various links in the supply chain, it is said to cut time to build the prototypes thereby supporting innovation. The study suggests the approach whereby using adequate trained manpower and production of parts in-house the number of suppliers could be reduced. Coupled with shorter leadtimes, it is expected to affect manufacturing and logistics. Parts and components could be printed directly wherever they are required with the need for transportation. With the lighter and less costly products known to reduce inventory and handling costs, shorter lead times have the potential to reduce supply chain complexity. On the flip side, the future deployment of 3D printing is highly uncertain with high production costs and slow production speeds deterring a large-scale implementation. In comparison, the use of alternative powertrains could be a high-impact driver. Alternative powertrains such as the Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEV), Range www.autocomponentsindia.com
Extenders (REX) or Fuel Cell (FC), require major changes in the workforce, logistics channels, and manufacturing processes, and also an unpredictable market breakthrough as per the study. The Another example is “connectedness of cars”, as the potential for new business models is huge but currently still very uncertain when it comes to the actual monetization of technological possibilities, not to mention future regulation. By Deloitte’s methods for the long view, the critical uncertainties were used to shape four quintessential scenarios: Data and mobility manager, stagnant car maker, the fallen giant and hardware platform provider.
Data and mobility manager
Connectivity is today a big differentiator. E-mobility, autonomous driving, and integrated mobility are a common reality. OEMs are able to set the standards and are the dominant players in the automotive industry. They are offering a rich portfolio of products and services. Innovative automotive outsiders are claimed to have to play according to the rules set by OEMs. In particular premium brands and status are deemed to play a decisive role in the consumers’ buying behaviour.
The fallen giant
The car is said to be a mere means of transportation with the brand attractiveness said to have diminished. The study claims further that the technology hype has cooled down
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and put an end to the rise of the high-tech car. As mobility has become a commodity, the profit margin has decreased and OEMs are focusing on improving processes and on cost efficiency. Industry outsiders such as Uber have entered the market and forging exclusive alliances with suppliers to provide affordable mass mobility. Private car ownership has decreased, fleet management has become of significant importance for OEMs. New talent is hard to come by, due to the loss in the attractiveness of OEMs.
Stagnant car maker
Claiming massive lobbying by OEMs as preventing potential new high-tech players from entering the market, Deloitte’s study correlates the defensive strategy for the slowdown in technical development. It cites it as a reason for many potential innovations not being rolled out to the market, with regulations, for example, limiting the deployment of technology. Dramatic accidents with immature autonomous cars according to the report has also resulted in a loss of consumer acceptance.
Hardware platform provider
IT players have disrupted the automotive value chain and with this OEMs have become the suppliers of white-label cars to the internet giants, adds the study. The report claims that OEMs can play a relevant role only if they provide a superior platform for ‘infotainment’ and mobility services and or retain their strong brand image. Since OEMs are not able to fully cash in the revenue potential, the margin per vehicle is fast decreasing.
entrants such as Google or Uber. With user-centric software as their strength, they will leave hardware development to OEMs. The fourth business model could have the future car company creating profits from mobility services and user data. On the one hand this includes car- and ride-sharing services (mobility management). On the other, the company will generate revenue from connected services and data, i.e. software and apps for information or entertainment offerings as well as other ways to monetise the large amounts of data available in and around cars. The report concludes, however, that despite the anticipated changes over the next few years, the classic core competence of OEMscould revolve around vehicle production. ACI
By 2025 the technological advances may or may not materialise. The competitive landscape and the strength along the value chain may or may not have changed. So the world for a typical OEM in 2025. Today, the company primarily operating two business models: producing and selling vehicles, in 2025 could have two additional business models expected to play a significant role in the future car company. Producing white-label components and vehicles could have evolved as a third business model with the main customers for white-label vehicles including new market www.autocomponentsindia.com
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Take the example of a prototypical OEM, headquartered in Europe, with no distinct market positioning and serving both premium and volume segments. Assume that the brand is respected and commands solid profit streams. With an annual turnover estimated at Euro 60 billion and an EBITDA margin of 12.5 per cent, it ranges well within the order of magnitude of other European carmakers. Here the report selects EBITDA as the main KPI for profitability because it represents the operational profit. Interest, tax, depreciation, and amortisation are said to be not modelled for operational success as their future developments do not always have direct links to operational performance.
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Cover story AUTO COMPONENTS INDIA n APRIL 2020
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Supply Chain Crisis Management From being considered a healthy alternative to China in the aftermath of the Covid-19 epidemic, the Indian automotive industry was faced with an uphill task of crisis management. Story by: Ashish Bhatia www.autocomponentsindia.com
Cover story
by the softened market sentiment in the domestic market. Just as global companies appeared to have found the perfect solution to reduce supply chain bottlenecks, covid-19 was pronounced as a pandemic. Instead of embarking on the journey of global outreach, India faced an uphill task of supply chain crisis management.
The severity
For the supply chain crisis management, India did not have to look far beyond the manufacturing slowdown of Wuhan-based Dongfeng. China’s third-largest automobile group by sales and partner to global OEMs including Honda, Nissan, PSA and Renault. With a combined annual production of six lakh vehicles per annum, Dongfeng resumed production after a long hiatus of nearly 50 days towards the end of March. According to the China Passenger Car Association, the halt in production by such key players’ led to 215,000 vehicles being manufactured in February. In effect, it resulted in an 80.6
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owards the fag end of January, in the aftermath of the Covid-19 outbreak in China, highly import-dependent countries began scouting for alternative manufacturing and assembly units to de-risk their supply chain ties. To overcome the deadlock in their supply chain, they leaned to countries with relatively normalised supply chains and production capacities. India was counted among countries like Taiwan and the United States of America (USA) as being more suited to serve the needs of the global automotive clientele. As the chants of “China’s loss could be India’s gain,” were seen gathering momentum, the stakeholders of India’s automotive industry sprung to look at ways to engage the small, medium and large enterprise community in an adverse time for its neighbouring country. The opportunity to serve a global automotive clientele presented itself as a means to revive business and hedge severe losses accumulated along a period of a prolonged economic slump worsened
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Cover story AUTO COMPONENTS INDIA n APRIL 2020
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Rajeev Kapur Managing Director Steelbird Group
Neha Anna Thomas Senior Economist Frost & Sullivan
Rajan Wadhera President SIAM
I propose a two weeks’ shut down to avoid the long-term economic collapse. We are all prepared and we can bear the brunt of the shut down; However, god forbid if Covid 19 goes beyond control we will not able to face the economic consequences.
Economies across the globe face unique risks and implications based on ties with China and other factors. From 2.9 per cent global GDP growth in 2019, growth is expected to slide to 1.7 per cent or less in 2020 should a severe pandemic scenario unfold.
As per quick estimates, it is expected that the plant closure of Auto OEMs and components manufacturers will lead to a loss of more than Rs.2,300 crores in turnover for each day of closure.
on ties with China and other factors.” “From 2.9 per cent global GDP growth in 2019, growth is expected to slide to 1.7 per cent or less in 2020 should a severe pandemic scenario unfold.”
the potential margin contraction and asset turnover pressure. The study also cautioned against any disruption related to a single component being exclusively or largely imported from China to negatively affect the entire chain of OEMs, tier-one and tiertwo suppliers. Over 80 per cent of the imported components in Indian two-wheelers and truck-trailers are claimed to be from China. With this, the reliance on imported content is higher in the segment than other auto segments increasing the potential risk. In cars, buses and commercial vehicles, Chinese import concentration ranges between 17-25 per cent of the total imports.
per cent decline in comparison to the previous year (February 2019). China’s February manufacturing Purchasing Managers’ Index (PMI) is known to have hit an all-time low level of 35.7, confirming a sharp contraction in factory activity. The reported levels were said to be worse than the previous low reached at the time of the global financial crisis in November 2008. PMI in 2008 dropped to 38.8. Speaking on the extent of global severity as a result of an overt dependence on China, opined Neha Anna Thomas, Senior Economist, Frost & Sullivan, “Economies across the globe face unique risks and implications based www.autocomponentsindia.com
According to an India Ratings and Research study, Indian auto ancillaries and OEMs have an estimated 27 per cent import dependence on China for key parts and accessories. It is blamed for creating a significant supply-side risk. Under Ind-Ra’s base case estimates, a sustained supply chain issue could increase the median net leverage of domestic producers by a margin of 0.3x due to
Cover story Ironically, China, the first to suffer the wrath of the deadly virus, at the same time showed signs of a reversal. It showed signs of limping back to the new normal with the outbreak said to have passed its worst in the country. Albeit labour shortages in the initial stages continue to challenge a speedy recovery of China’s manufacturing activity. Taking a cue from China, the International Chamber of Commerce (ICC) and the World Health Organization (WHO) came together to work closely with an objective to ensure that tailored guidance reaches the global business community including in India. According to Thomas, for starters, Indian manufacturers will have to cope with disruptions in
intermediate inputs from China, necessitating near-term supply-chain diversification. As per the Ind-Ra study, in the event of a prolonged disruption in the supply of key components, the industry, could turn to procurement either locally or from other countries such as Germany, South Korea, Japan and Thailand and estimated to account for around 33 per cent of the total imports. The change in procurement channels, however, could prove to be both costlier and the supply could be insufficient to meet the demand. Falling in line with the Government’s efforts to pull out all stops and break the multiplier effect of the dreaded human to human transmission, Indian Original Equipment Manufacturers (OEMs) resorted to taking bold decisions. From filling in for China, the country has had to
emulate the production halts imposed across global automotive hubs. In line with Prime Minister Narendra Modi’s plea to use resolution and restraint as important tools to combat the pandemic, OEM, suppliers, dealer partners and ancillary measures took a range of measures spanning from deploying employee rotational shifts policy to restrict the on-site manpower utilisation to 50 per cent to partial production halts to adhering to complete lockdowns imposed by the government (most significantly of 21 days from March 24, 2020). Stated Rajan Wadhera, President, SIAM, “As per quick estimates, it is expected that the plant closure of Auto OEMs and components manufacturers will lead to a loss of more than Rs.2,300 crores in turnover for each day of closure.” Closure of 21 days with this quick assumption means a cumulative www.autocomponentsindia.com
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China recovered as India locked down
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Cover story
Guenter Butschek CEO & MD Tata Motors
Ujjwal Munjal Executive Director Rockman Industries
Ashish Harsharaj Kale President FADA
As a manufacturing organisation we have a complex task at hand. We rolled out a three-tier response plan based on the incidence of infections in cities we operate and will continue to make proactive decisions should the need arise.
All Rockman employees, contractual and permanent, will be retained. Rockman has an employee strength of 7,200 spread across operations. It is imperative that we all come together to fight this pandemic.
Owning to situations which are beyond our control and the fact that many of our members may face dealership closures if leftover with unsold BS-IV stocks, FADA has once again approached the apex body and hopes to get an urgent hearing.
loss of Rs.48,300 crores. Companies excluding intangible costs could risk long term financial losses.
across the 16,000-strong employee community. A group corporate taskforce for Covid-19 with senior leadership and medical professionals were put in place to scan the entire operating environment (internal as well as external), to review the operating guidelines released by central/state governments and to formulate and execute the action plan devised. Rockman Industries Ltd., the auto-components arm of Hero Group, suspended all operations across seven facilities till March 31, 2020, in the early stages. The company has manufacturing units in Ludhiana, Haridwar, Bawal, Chennai, Tirupati and Halol from where it supplies
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Crisis management
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In India, automotive companies pulled out all stops to adhere to these guidelines and continue to do so with global crisis unfolding. For instance, Amara Raja Group of companies with their flagship company Amara Raja Batteries Ltd., based on the spirit of the GO from Government of Andhra Pradesh, shut down the manufacturing operations across units. The group initiated a trainthe-trainers program to create a large scale spread of communication www.autocomponentsindia.com
aluminium die casting components and automotive chains to some of the leading automobile OEMs in India and overseas. The company is also a key supplier of two-wheeler alloy wheels with an installed annual capacity of 12 million wheels. Maxxis India as an initial preventive measure suspended its manufacturing operations at the Sanand facility, in Ahmedabad till April 14, 2020. The largely preventive measures taken in view of the lockdown to contain the pandemic are expected to be followed up by carefully planned and strategic measures to break the supply chain deadlock. In a show of solidarity,
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Cover story AUTO COMPONENTS INDIA n APRIL 2020
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JK Tyre’s Leadership team had the Chairman and whole-time directors of the company take a voluntary cut in their salary of 25 per cent. Other senior management personnel are also said to have taken a voluntary reduction in their salary by 15-20 per cent with the pay cuts said to be applying to global operations too. The company admitted to both sales and profitability getting impacted. Apollo Tyres’ top management also took a 15-25 per cent pay cut in a move said to be an outcome of the significant decline in business due in key markets like Europe, North America including in India. Among OEMs, Toyota Kirloskar Motor halted production in the Bidadi plant, in Karnataka following the latest directions from the Government of Karnataka. The latter is known to import Vellfire, Prado, Land Cruiser and Prius as Completely Built Units. The company with a www.autocomponentsindia.com
6500 employee base has an annual production capacity of 310,000 units out of which Bidadi alone has a total installed production capacity of 100,000 units. TVS Motor Company halted all manufacturing operations at its plants in India and Indonesia. The company assured dealers and suppliers of all support to help tackle the unprecedented crisis. To provide uninterrupted services to customers, Hyundai Motor India Limited, offered 24x7 roadside assistance to help in case of any emergency if required. Further, for customers unable to avail of vehicle’s warranty / extended warranty / free Service due to health emergency or dealership shutdown in affected cities, HMIL committed to offering extended support of two months. The company deployed more than 1000 doorstep advantage bikes and emergency road service cars from dealers to reach customers for assistance in case of emergency and minor repairs. HMIL is critical to the
Group company’s global export hub with exports directed to a total of 88 countries across Africa, Middle East, Latin America, Australia and the Asia Pacific. Yamaha Motor India (YMI) Pvt. Ltd. suspended its manufacturing operations at its Chennai plants, in Tamil Nadu, Surajpur in Uttar Pradesh and Faridabad in Haryana in line with the respective state government notifications. Honda Motorcycle & Scooter India Pvt. Ltd. shut down operations across all its four manufacturing plants. Mahindra & Mahindra Ltd., suspended manufacturing operations at its Nagpur, Chakan and Kandivali plant keeping a close eye on the developments. Several other measures including the highest standards of hygiene and promoting social distancing at all the offices and manufacturing locations across the country were taken by the company. Tata Motors rapidly scaled-down activities in Maharashtra starting
Cover story and Brazil in a tactical move. With uncertainties in the further planning horizon that the company expects to mitigate to a large extent, Tata Motors expects to limit the volume losses in the fourth quarter (Q4FY2020). The timeline for a complete rebalancing of supply and demand is dependent on the further developments in the coming weeks. In China, the company is continuously monitoring the evolving coronavirus situation closely and responding appropriately in accordance with relevant government requirements and advice in China and other jurisdictions it operates. Production at the company’s Shanghai-based JLR China & Chery Jaguar Land Rover will be ramped up as the number of employees returning to work and demand increases. The spread of the virus to other markets such as South Korea, Japan, and Italy is also
expected to impact sales in those markets. Amidst steps to mitigate the supply chain crisis, Federation of Automobile Dealers Associations (F A D A) approached the Apex Body with a request for permission of sale and registration of BSIV vehicles till May 31’ 2020 with a hope to get an urgent hearing in the Hon’ble Supreme Court owing to the criticality of the issue and the deadline of March 31, 2020. With the overall extent of the negative impact OF Covid-19 on the automotive industry in India and globally yet to play out, the industry is expected to announce a slew of measures to better manage the supply chain crisis in the coming days. Until then the industry needs to be lauded for its underlying belief of being able to rapidly resume production and assembly as well as sales and service when the time calls for it. ACI www.autocomponentsindia.com
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with the Pune site. It did not rule out a pan India closure if the situation warrants. For Tata Motors domestic, the transition out of BSIV is claimed to be almost complete. It is the materials management to support the rampup of BSVI that has become a daily affair for the OEM. Here the company claims to see improved availability position as vendors come on stream in China. With some flexibility in the mix (models, trim levels) current visibility is said to be in a position to protect production volumes up to mid-March. For Tata Motors domestic business, Q4FY2020 performance is said to have factored in significant impacts due to the switchover from BSIV to BSVI. It is the shortage of parts that is likely to have some additional impact on specific BSVI models that the manufacturer expects to secure in the coming months. Tata Steel, known to be dependent on China, on the basis of a risk assessment, switched to sourcing some of its consumables from Turkey
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Cover story
Integration for BSVI Compliance VE Commercial Vehicles is banking on integration for BSVI compliance to match Volvo Groups’ global success in India. Story by: Bhushan Mhapralkar
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E Commercial Vehicles (VECV) is banking on system integration as an Original Equipment Manufacturer (OEM). Capitalising on the capabilities of the sister concern VE Powertrain (VEPT) plant to deliver its BSVI product range, the company has long announced that it is BSVI ready. The feat was attained with the BSVI module integration from the sister concern VEPT plant commissioned in July 2013 at Pithampur, in Madhya Pradesh. With a current capacity of manufacturing 75,000 units of the five and eight-litre engines, the latter is reckoned as the hub for meeting the medium-duty automotive engine requirements of Volvo Group globally, including at VECV. An estimated 1,20,000 Euro6 base engines have been manufactured at the plant with claims of the engine technology tested for over 5.6 million kilometres. The plant mirrors the Volvo
Powertrain assembly plant in Sweden with its ability to manufacture Euro6 engine units. It is noteworthy that the base engines for Euro6 requirement of the Volvo Group are being supplied to their Venissieux plant, in France. The platform on adaption doubles up as the Euro3 to Euro5 engines requirements of the company globally. Leveraging the knowledge repository built as an outcome of supplying Euro6 engines to Volvo Groups’ Venissieux plant, in France, VECV has tweaked these engines to suit the Indian duty cycles. Averred Vinod Aggarwal, Managing Director and Chief Executive Officer, VECV, “We have an experience of over six years in manufacturing EuroVI engines and a knowledge repository of data gathered from across Volvo engines used in 1,20,000 thousand trucks worldwide. All that experience and nuances in engines will be incorporated in the driveline, so we are prepared to deal with complexity.” Aggarwal explained that in contrast to the duty cycles of a Euro6 truck, the BSVI trucks had to be built to align with Indian duty cycles, regulatory requirements and a lower power-to-weight ratio. With a mechanism in place to identify and feed the right set of piston rings for the assembly of the piston in an engine, the VEPT facility has in place advanced process measurement equipment and setup for critical operations. If the deployment of SPMs with work changer points at a high level of automation, the Pithampur facility is clearly about getting it right the first time around. Having in-process verification and multiple tests, the plant is a reflection of how the initial reservations about the viability of producing global-spec engines in India were successfully
Cover story
overcome. Deploying AGVs for final assembly, the frugal engineering approach at VEPT is based on the custom proto build.
l Advanced capability
Comprising of a hybrid concept with wireless charging, equipped with safety features recommended by EU standards, the facility has in-process verification at every stage. With regular forums being held to share knowledge and improve productivity by addressing areas of concern, the VEPT facility has, and continues to play a key role in VECV’s quest for BSVI. Consider, for example, the innovations in the BSVI cylinder head sub-assembly where the injectors are assembled and the engine proceeds for a leak test. Conventionally, engine manufacturers conduct the leak test either when the engine is entirely ready or when the fuel flow is higher and efficiency, not the most optimum. Here, the leak test is conducted when the injector is fitted on to the engine. Any anomaly in fuel flow addressed at this stage, and with the engine assembling process in progress, the VEPT engine plant has achieved a good balance between the processes and cycle time. Unique is the smart cell for cylinder head assembly.
An in-process verification module ensures that digital verification technology operator activity and errors are nullified on the go.
clearances. The engines that roll out of the facility are well-configured thus. This is expected to prove to be of much help in the BSVI environment. The low tolerances leading to less noise, especially in an environment where BSVI norms prescribe stringent NVH levels, the engines rolling out of Pithampur are indeed well-configured. With the quality adherence measures
integrated within different processes, the quality assurance department takes care of product certifications. Quality inspectors form a part of the production team, thereby negating the need to have additional personnel for this task.
l World-class manufacturing
The entire valvetrain unit is assembled on to a machine called Smart Self, which can assemble 168 parts in 120 seconds and is a first-of-its-kind doing duty in an Indian manufacturing unit. The VEPT facility has a system enabled (pull-based) minimum material movement. An amount of customisation is apparent given the combination of automation and manual work. If machines like the Smart Self depict how customisation and automation have led to the optimal use of manpower, the VEPT facility is about keeping costs in check without losing sight of quality and cycle time. Interestingly, there is an automatic process to set the valve
VEPT has implemented frugal management techniques, which improve manpower productivity and reduce downtime.
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l Smart approach
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Cover story
l Higher Uptime
AUTO COMPONENTS INDIA n APRIL 2020
At VE Commercial Vehicles, a newly set up Uptime Centre spread over an area of 2400 sq.ft will be the backbone of its BSVI range of commercial vehicles. A vital cog in the wheel of the adapting Euro6 Technology (deemed as Eutech6) to Bharat Stage VI emission norms, the centre to be optimised in a phasewise manner boasts of 87 employees who will offer 24x7 support facility helmed by specialists in the field. To bolster its effectiveness of the new centre, VECV has deployed a GPS enabled service van available on call. Through remote diagnostics,
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Implementing the World Class Manufacturing (WCM) practices from Volvo’s global operations at the Pithampur plant, the company, to provide an ergonomic advantage to the operator has engineered the engine assembly process such that it is done with the engine kept vertically aligned. This is contrary to the common practice of the engine being positioned horizontally. VEPT and VECV have been working closely together. With the BSVI development consisting www.autocomponentsindia.com
the company will offer quick repair of BSVI vehicles. Within a time span of four hours, a diagnostic learning document is created for the dealership to help customers attain a higher uptime. Under vendor support services, claimed to be a unique initiative, the company is collaborating with company vendors to offer service within 24 hours. This includes information on parts availability and quantity to VECV customers. In case of part unavailability at the dealership, the part will be reached to the particular dealer. Failing which the
company banks on the regional three distribution centres. A failure at this level will trigger the identification of the part from the HQ office (mother warehouse) at Pithampur and shipped thereafter with a TAT of 24 hours. VECV aims to offer predictive diagnostics (in phase 2) and specialised field support to all BSVI VECV vehicles. The ‘Uptime Enablement’ of all workshops in the network is claimed to be progressing rapidly to ensure the availability and adequacy of people, process and infrastructure. Deven Lad
of much R&D, testing and validation, the two entities have been leveraging their proximity to the Volvo Group to gather knowledge and to anticipate as well as tackle any disruptions that may come their way. Among other salient features of the plant is the machining cylinder block of four and six-cylinder engines, in-process measurement of critical operations, verifications and multiple tests, SPMs with work changer to minimise part change time in machining,
system enabled (pull-based) minimum material movement and repacking under a controlled environment. VECV unveiled the first BSVI vehicle in June 2019 with the introduction of new-generation Pro2000 series. As per company claims, deliveries of BSVI vehicles have commenced in select markets and the entire new range of trucks and buses will be made available throughout the country ahead of the April 01, 2020 deadline. ACI
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Business filings
Anand Groups’ Collaborative Approach Anand Group allies with FAR and Mazaro for mutual benefit. The two collaborations are expected to be leveraged for innovative and lightweight solutions. Story by: Deven Lad
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nand Group is not new to alliances having established the first business venture (erstwhile Gabriel India) in alliance with Maremont Corporation for the manufacture of shock absorbers at a facility in Mulund, Mumbai. With over five decades of continued exposure to several such alliances with global companies. According to Sunil Kaul, Group President, Innovation and Technology and Excellence in Manufacturing at Anand Group, the company over the last six decades has formed alliances with leading global automotive companies. Out of the 17 Group companies, 12 companies are joint venture entities including seven technical collaborations in the area of light-weighting and enhancing the efficiency of transmissions or powertrains. In yet another testimony of its collaborative approach, earlier this year the company inked two new partnerships. With a focus on innovative solutions to reduce emissions, the group has allied with the UK based FAR known for its lightweight structural composite materials. The alliance will see the two entities jointly work to lightweight vehicles significantly and help Original Equipment
(L to R) Filip de Maziere, Promoter Director, Mazaro, Deepak Chopra, Group CEO, Anand Group, Sunil Kaul, Group President, Innovation, Technology and Excellence in Manufacturing, Anand Group, Lyndon Sanders, Co-founder & Director, FAR UK.
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Manufacturers (OEMs) to attain higher levels of fuel efficiency as they strive to offer the lowest Total Cost of Ownership (TCO) in turn to their customers. In collaboration with Mazaro of Belgium, Anand Group aims to enhance the efficiency of transmissions and thus the powertrain itself. The company is of the belief that the latter’s technology has the potential to reduce the energy consumption of Internal Combustion Engines and EVs by up to 18 per cent. Averred Anjali Singh, Executive Chairperson of Anand Group, “Our aim is to bring cutting edge technology to cater to the Indian OEMs. The collaboration with FAR will evolve to create innovative lightweighting solutions for the Indian OEMs. The association with Mazaro will help to create efficient transmission systems for the Indian automotive industry.” Committed to strategic investments in India, according to Kaul, the Group is closely watching all the developments. “The Indian Government is enforcing driving standards through Corporate Average Fuel Efficiency/Economy (CAFE) regulations, with an ambitious goal of reducing emissions to 95 gm of CO2/km in the coming years.” “The FAME II scheme enables adoption for Full Battery Electric Vehicles. While the EVs may not have any tailpipe emissions, they have about 20 per cent higher carbon footprint in manufacturing as compared to ICE propelled vehicles,” opined Kaul. Of the opinion that price could be a crucial deciding factor for the go-tomarket strategy, explained Kaul that customer satisfaction continues to remain the biggest challenge for companies. “Prices could be higher for carbon composites which are expensive. We should go beyond a product and look at a system,” he stated. For instance, the composites are said to eliminate the need to weld. Capable
Business filings
of being joint with the use of chemicals, the latter is said to offer the strength of a welded joint. This further eliminates the need to paint owing to the high anti-corrosion capabilities and in turn, reduces the overall processes. It also brings along the benefit of reduced tool cost and tooling investments besides facilitating a low TCO. FAR-UK is known for its expertise in composites, R&D material development, finite element analysis and testing for correlation, simulation and bench testing, automotive design, product and process innovation besides operational excellence. Backed by a team with rich experience of working with automotive companies in the UK and Europe, the Anand Group is confident of the new partnership laying the foundation of light-weighting in vehicles by almost 50 per cent. The company claims to be in a position to offer OEMs lightweight composites as a result of the alliance, matching the strength of high strength alloy steel while weighing similar to aluminium. Forecasting a revenue generation of an estimated Rs.600 crores by 2025, Anand will explore and create first to the world applications in the Indian automotive sector through the use of carbon fibre judiciously and efficiently. The partnership is expected to positively impact last-mile connectivity, intracity transportation of goods across segments of two, three and four-wheelers for different duty cycles.
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FAR UK products exhibited at Auto Expo 2020
l Mazaro alliance
Belgium-based Mazaro is credited with the patented invention of an entirely new transmission technology for a broad range of vehicles, auxiliaries and industrial applications. With an objective to study and optimise the whole driveline for typical driving cycles of vehicles or industrial applications, Filip De Mazière, has designed transmissions and clutches for over 25 years for major OEMs of high-end sports cars, passenger cars, off-highway vehicles and material handling equipment. In collaboration Mazaro, Anand Group aims to enhance the efficiencies of transmissions and inturn the powertrain. Of the belief that Mazaro’s technology has the potential to reduce consumption of energy in ICE and EVs by up to 18 per cent, Anand expects to generate an estimated revenue of Rs.350 crores by 2025. The alliance like with FAR is expected to positively impact fourwheelers used for last-mile connectivity, intracity transportation of goods,
passenger vehicles across segments and off-highway applications like forklifts and generating sets. Through the two alliances, Anand Group will strive to make BSVI and Electric Vehicles economically viable. While increasing efficiencies and cutting down on emissions, the company vows to look at every aspect of the vehicle. Citing a comparison with the existing components and the group joint ventures in the ’90s at a time when the economy opened up, according to Kaul, the company is well aware of the market’s demand for innovative products. “Innovative products take time because you have to search for them. You need a certain amount of conviction and need to be confident before the development is taken forward owing to the high-risks involved in terms of investments and a failure,” he said. “It’s like a startup where we are scouting for another three to four such products for which we expect to ink three more alliances by the year-end,” he concluded. ACI
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Business filings
Flash Electronics Technical Integration Brake
AUTO COMPONENTS INDIA n APRIL 2020
Flash Electronics partners two European companies for technical integration with an aim to boost EV revenues by 2025. Story by: Deven Lad
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une-based Flash Electronics manufactures an estimated 150 products across the spectrum of electrical and electronics, components pertaining to e-mobility besides catering to mechatronics and conventional gears and transmissions. Expecting to generate 10-15 per cent of revenues from EVs by 2025, the company continues to strengthen its technical partnerships with
niche companies catering to the business. In line with the strategy, the company recently announced two technical partnerships with EU-based companies. The company is looking at a collaboration with Italy-based Askoll through a Letter of Intent (LoI) signed on January 16, 2020. It has also partnered France-based, efficient energy-storage company Enerstone. On
adapting the technology integration and subsequently products manufactured out of the two partnerships for India, averred Sanjeev Vasdev, Managing Director, Flash Electronics, “Every product has to be adaptable to the local condition as you can not expect the same performance from India because Indian climatic and driving conditions are totally different.” “A local design and development which is proven and tested for reliability holds the key,” he explained.
l Integrating for EVs with Askoll
As per a LoI signed with Askoll, the latter through a market survey wants to test Indian waters. Averred Gian Franco Nanni, Chief Executive Officer, Askoll, “We believe that being supported by Flash Group will allow us to better understand the local context. It is the first step for both companies to expand in India where there is s strong potential for renewable energy.” “The Indian twowheeler market is 20X of the European market and shows good potential with the government push for e-mobility,” he opined. The company will assess Indian consumers and auto manufactuers’s interest in Askoll EVA brand products. Claimed to be among market leaders in sustainable mobility, the company develops, manufactures and markets
l Integrating for EVs with Enerstone
In the partnership with France-based Enerstone, the latter will develop advanced BMS modules claimed to have the potential of extending EV battery life by an estimated 30 per cent. Catering to applications where the battery represents a large cost of the equipment and where battery failure, or loss of capacity, adversely impacts the user experience or the equipment that is powered, Enerstone claims to offer a quality assurance with its energy efficient storage systems. Through the Active Battery Balancer, an electronic circuit connected to a rechargeable battery, the company offers battery diagnostics
Business filings
and ensures safe operations. The patented technology works such that the weakest cells of the battery are replaced with the strongest ones during the charge and discharge cycles. MetaCard as its called helps manage battery packs that have been reassembled with cells in different age brackets and or second life cells. Expressed Vasdev, “We are making the next generation of products and this has the potential to change the course of battery management.” Among other claimed benefits are 20 per cent reduction in battery waste, 0.5 per cent reduction in charge energy, 17 per cent lower total cost of ownership, 20 per cent reduced lead-acid for an equivalent performance besides less charge time. In case of EVs the company manufactures a range of products like the BLDC fan assembly, BLDC Fan motor 12V and 48V, DC-DC Converter in 10A, 18A and 30A. The company also manufactures EDI (private and public charging units), BLDC motor, BLDC Stator apart from manufacturing flash charging boxes. It’s clientele includes companies like Bajaj AUto, Volkswagen, Jawa, KTM, AUdi, Eberspacher, BMW, Mahindra, Bosch, Nissan and Yamaha to name a few. ACI
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AUTO COMPONENTS INDIA n APRIL 2020
Sanjeev Vasdev, Managing Director, Flash Electronics
e-bikes and e-scooters. It also caters to kits and components across electric motors and battery components. In a vehicle proto displayed at the Auto Expo Components Show 2020, Sachdev claimed the company to have helped Askoll design the e-motor, e-controller, battery pack, Battery Management SFlash Electronics Partners for Technical Integrationystem (BMS) and the control unit which will be exported to Italy for use. As per the non-binding LoI, post the market survey, Askoll will evaluate the technical partnership with Flash Electronics aimed at localising the production of Askoll EVA branded EV components in India.
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The Turkish Components A critical sector for Turkey, the automotive components ecosystem is well poised. Story by: Deepti Thore and Ashish Bhatia
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The growth of the Turkish automotive industry can be attributed to the developments that took place in the 1950s when the first Turkish automotive products were produced in 1954. Like most markets where the roots of the automotive industry are known to have been sown by their exposure to defence applications, the production of army jeeps from Willys Overland Ltd. is known to have set the ball rolling for Turkey’s automotive industry especially the components manufacturers. This investment was followed by key developments including the truck factory of Türk Otomotiv Endüstrisi A.Ş. in 1955, the second and third truck factories of Otosan and Çiftçiler A.Ş., and Istanbul Bus Karöseri Sanayi A.Ş. production of the Magirus buses, in 1963. The bus production was followed by the production of the first Turkish car at the Eskişehir State Railways Factory in 1961. Aptly named as the ‘Revolution’, it was limited to the production of four prototypes. Albeit with a production demand of an estimated 5000 units. The low demand, in turn, translated to Turkey finding it tough to attain the desired levels of economies of scale and hence breakevens. The challenge was addressed only half a decade later, in 1966, with the production of the Anadol car which helped the industry move towards healthier production scales. The Tofaş and Oyak-Renault establishment in 1969 is
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deemed as a significant development that helped the industry come out of a cocoon. More recently, as per the report, “Turkish Automotive Industry Agenda” conducted by the Presidency of the Republic of Turkey Investment Office and EY in Turkey, the USD 15 billion OEM investment made between 2000 and 2018 in their Turkey operations is said to have significantly expanded the manufacturing capabilities. It is believed to have led Turkey to establish itself as a key part of the international OEM value chain. With a stronghold in the automotive components sector, Turkey today develops competitive components for the pioneers in the automotive industry, by far the country’s largest. With an expanse concentrated mainly in the regions of Bursa, Marmara Region, the component industry has also shown signs of growth in regions like Istanbul, İzmir, Kocaeli, Ankara, Konya, Adana and Manisa. Producing components and ancillaries with a high degree of localisation looked at as highly advantageous, the strategy is said to have helped Turkey establish itself as a global automotive hub. An estimated 4000 auto component manufacturers are known to be operating in the country including an estimated 1,000 direct suppliers to Original Equipment Manufacturers (OEMs).
Micro Market
Today, a lack of domestic car manufacturers is compensated by the presence of big names such as Toyota, Fiat Chrysler and Ford with their decades-old presence in the market. Volkswagen is the latest to join the bandwagon as the latter looks to set up a factory in the region. To help sustain growth, the local manufacturers have increased their capabilities manifold. Localised production of components spans full engines and engine parts, chassis and associated spares, batteries, suspension and transmission systems, HVAC, brakes, clutches, hydraulic and pneumatic systems, glass, security systems and safety parts, rubber and plastic parts and seats to name a few. Manufacturers, especially associated with the production of shock absorbers, brakes and clutches, piston rings, oil filters, bumpers, lights, signalling parts, glassware, additives, spark plugs, tyres, lights and catalytic converters are said to be frontrunners in realising the anticipated growth.
l Technical Integration for EVs and Hybrids
E-mobility has taken Turkey by storm too. With its focus on building a sustainable transport system, Turkey is striving hard towards a new chapter. This drive, in turn, requires component manufacturers to increase their capabilities in the realm of components like electric
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AUTO COMPONENTS INDIA n APRIL 2020
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l Frontline components
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motors, battery modules, battery management system, inverters and electronic control units besides an array of supporting components. For instance, Cummins Inc. recently introduced the new version of B4.5 and B6.7 EuroVI Phase-D engines to the Turkish OEMs for their intracity and intercity bus range. When integrated with a diesel-electric driveline, the engines are claimed to hold the potential of reducing fuel consumption and related CO2 emissions by as much as 33 per cent. Such collaborations are being looked upon to help Turkish OEMs graduate to electrification and fleet decarbonisation. Among next-generation products to fuel the emobility aspirations of Turkish manufacturers are integrated e-drive modules known to combine motor, transmission and inverter into a single lightweight system. The next-generation battery electric systems are claimed to offer a high energy density for zero-emission designs.
Allison Transmissions’ AXE Electric Axle Series for the Turkish market is specially designed to fit between the wheels of heavy-duty trucks and buses in a bid to replace traditional powertrains. Compatible with the current vehicle frames, suspension and wheel ends they are said to be well-suited to most OEM vehicle assembly processes. The series features fully integrated electric motors, a multi-speed gearbox, oil cooler and pump, and is said to be suitable for full Battery Electric Vehicles (BEV), Fuel Cell Electric Vehicles (FCEV), as well as Range Extended Electric Vehicles (REEV). For instance, the H 40/50 with Flex EV, an electric hybrid system with a 16 km range, Allison is looking at potential expansion of its electrification portfolio. Ideal for transit bus, coach and public transport applications, the system features zero-emissions capability with the engine off, including on approaching, during, and leaving passenger stops for a quieter and healthier environment. www.autocomponentsindia.com
Offering an EV charging solution from compact, highquality AC wall boxes and reliable DC fast-charging stations with robust connectivity, ABB offers on-demand electric bus charging systems. The company’s connected chargers are said to offer ease of installation as the company commits to mobility transformation in Turkey. In its car charging portfolio, the company offers high power fast charging, DC fast charging, DC wallbox, EV Lunic wallbox and Terra AC wallbox. For heavy commercial vehicles, it offers connector charging, pantographs up/down and solutions for flash charging. A leader in electric propulsion technology, Magelec propulsion offers axial flux powertrain solutions and highspeed transmissions for passenger cars, commercial vehicles and buses and coaches. With core products like high-tech
motors - axial flux permanent magnet synchronous motors which include drive motors, inverters, gearbox and drive system accessories, the company hopes to fill the void in EV and Plug-in Hybrid Electric Vehicles (PHEV) in Turkey.
Micro Market
ownership, the retarders additionally help curtail driver fatigue. With a claimed 7x lifespan over service brakes systems including pads, the lining of the disc and drum brakes, its frictionless system is said to reduce dust emission too. The company’s F16 and F16C series are installed in the driveline of front-engine vehicles (trucks and buses), between the joints of the driveshaft. The retarder F12-40 S7 is claimed to be popular in minibuses, cash in transit vans, rescue vehicles and said to be suitable for different OEM chassis including Mercedes Sprinter, Volkswagen Crafter, Iveco Daily, Renault Marcott, Ford Transit among others. FF16 is specially built keeping in mind rear-engine buses and the FF8-65 series for light vehicles. Among other manufactures is German company Voith with a wellestablished range of state of the art products and services for the Turkish market since 2005. The company’s range of retarders includes water retarders that provide braking using the engine coolant and oil retarders that work independently of the transmission fluid.
l Safety systems
The automotive safety system market is estimated to grow to USD 169.46 Billion by 2025, at a CAGR of 9.36 per cent from USD 82.80 Billion in 2017. Here a healthy mix of active and pass safety systems is considered crucial for the vertical’s
l Retarders
growth in the country. For instance, among crucial inclusions identified and catching on in the passenger carriers are the Fire detection, suppression and gas leak detection systems. Deemed as essential for the security of bus, coach among other commercial vehicles, the niche vertical has companies like Kidde Technologies Inc delivering advanced fire safety technology. The company offers such systems for bus, coach and commercial vehicles. Finding its application in European www.autocomponentsindia.com
AUTO COMPONENTS INDIA n APRIL 2020
Frenelsa is a Spanish company producing electric retarders for buses, coaches and commercial vehicles. On an expansion drive in the Turkish market, the company’s retarders are suited to drivelines as active safety elements. Claimed to offer a notable reduction in the total cost of
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Micro Market
Union countries including Turkey, these extinguishing systems are claimed to protect the passengers by providing visual aid and audible alarms in the driver’s dash area. The detection solutions include armoured linear thermal detector, dual-band optical detector and gas detection sensor. The UNEC107 extinguisher is also effective in combating fire.
solutions for bus articulation systems. Keen to leverage the growth potential in Turkey, the company is banking on its range of mature, maintenance-free, high reliable and high load-bearing bus articulation systems. Finding application in the sustainable Urban Transit and Bus Rapid Transport
AUTO COMPONENTS INDIA n APRIL 2020
Dafo Vehicle Fire Protection supplies fire detection and suppression systems for buses, coaches and commercial vehicles. Covering EVs and HEVs, the company offers a full coverage interim multi-zone fire protection solution. Keen to promote its business in Turkey, the company is promoting fire risk analysis prior to the installation of the suppression systems. A pressureless cylinder with the capability of
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minimising the risk of injury is claimed to be effective on flammable liquid fires like petrol, diesel and hydraulic oils. The system offers easy refill on-site helping to save valuable time and cost. Belt Check offers seat belt control, tracking and in-vehicle data collection systems. With the likes of Isuzu as its clients, the company’s system communicates wirelessly using sensors placed in passenger seats together with micro-key and sensory modules installed in the lock mechanism to relay audiovisual alerts on unoccupied, occupied, buckled and unbuckled passengers etc.
l Articulation systems and folding bellows
Jointech Vehicle System Co. Ltd. (JVS) offers integrated www.autocomponentsindia.com
or handicap entrance systems. Suppliers to Otokar, Karsan, Mercedes, Temsa and Isuzu among others in Turkey, the products have a 55 to 66 per cent coverage in the Turkish regions. Globally the coverage stands at two to three per cent. Given the rise in demand for electric product portfolios, the company is working towards manufacturing electronic components for electric door systems. Besides the company also manufactures manual lid systems, radiator lid, engine hood and luggage compartment covers. It is also working to meet the demand for automatic control of luggage systems in select markets.
Micro Market
system, JVS is among companies catering to OEMs with integration solution and technical support of articulated bus design and manufacturing. For instance, the company’s IK29H (Type L) series is claimed to be best suited for lightweight urban articulated buses across the ground clearances. The customised folding bellow design ensures compliance with overall bus body dimensions with a high degree of accuracy. The IK29F (Type A) series is suitable for 14-18 metres front and middle drive buses where there is a heavy-duty operational cycle requiring high reliability. The IK29F (Type E) series is suitable for 14-18 m large low floor front and middle drive buses including diesel, CNG, pure electric, dual-source electric and hybrid propulsions. The company also provides customised folding bellows claimed to be tear-resistant offering watertight climate insulation and noise reduction. Supported and protected by sturdy aluminium frames, these feature self-adjusting wire trays and robust aluminium alloy profile floors are said to be suited to most articulated-joint transport systems.
l Automotive lighting
The global automotive lighting market was valued at USD 18,003.36 million in 2018 and is projected to reach USD 28,776.40 million by 2026 at a CAGR of 6.7 per cent from
l Door and Accessibility systems
The market for door systems is projected to be valued at USD 293.85 Billion by 2020. Based out of Bursa, Revar is leveraging the growth potential by serving end-users with valve and piston repairs. The company offers electric door systems, accessibility systems, luggage compartment systems, electric steps range, roof hatch, escape hatch and disabled
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AUTO COMPONENTS INDIA n APRIL 2020
2019 to 2026. Leveraging this growth potential, Ankara citybased Aygersan are suppliers for automotive lighting in CVs with the clientele list including companies like Daimler and Ford. Based in Taiwan, Super Lee is looking at Turkey with its range of universal lighting products including low beam and high beam lights for commercial vehicles along with bi-function headlights. With an R&D and manufacturing department headed out of Taiwan, the company is seeking opportunities for expansion in Turkey. It is confident of its
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Micro Market signal lights, work lights, fog lights, daytime running lights, driving and auxiliary lights and other value-added services finding takers in the country.
AUTO COMPONENTS INDIA n APRIL 2020
l Automotive Glass
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The global automotive glass market is growing at 7.28 per cent CAGR over the review period of 2019 to 2025. In Turkey, to leverage this growth, Ankara based Doraglass produces automotive glasses for passenger vehicles, commercial vehicles, heavy-duty vehicles and bullet-proof glasses for the defence industry. Laminated windshield, solar control athermic windshield, resistance heated rear windows, insulated double glass, concealed resistance heated windshield, laminated door glass, tempered door and side windows, aluminium / panoramic framed glasses, encapsulated elastic windshield, laminated side and rear windows besides solar control privacy side and rear windows are some of the products supplied by the company. www.autocomponentsindia.com
Established in 2000, BTO Co Ltd., manufactures aluminium window frames with sliding and fixed glasses for all kinds of commercial vehicles, minibuses and buses.
l Passenger Information Systems
The Passenger Information System (PIS) market is expected to grow from USD 23.8 billion in 2020 to USD 42.3 billion
the country’s first domestic car on December 27, 2019. The quantum of the investment is expected to directly benefit allied industries including steel, advanced plastics and software. The government has also assured a production site to the consortium in Bursa. The Turkish Association of Automotive Parts and Components Manufacturers
Micro Market
by 2025, at a CAGR of 12.2 per cent. Leveraging this growth potential, Istanbul based Polaris Elektronik with a wide range of PIS products offers front, side and Rear LED displays for public transport to make it easier for drivers and passengers to access information. ERA as the leading supplier in Turkey for automotive electronic products is a big exporter especially to the EU, Middle-East and other countries worldwide. The company offers a range of digital bus clocks and bus sign units.
l Tractors
The Turkish market is fast turning into a chosen market for Tractor production owing to its low-cost model. Especially
l Consortium approach
In a rather bold and ambitious move, the Turkey Automotive Joint Venture Group (TOGG) as a consortium brings together five major Turkish companies. The move aimed at encouraging domestic manufacturing is specially focused on EVs. It is committed to launching a total of five EV models in a 15-year time span. To boost the objective of the startup consortium, the Turkish Government under the aegis of President Recep Tayyip Erdogan, President, Republic of Turkey has come forward and earmarked a fund of USD 3.7 million subsidies to the project under which he launched
(TAYSAD) is determined to help further Turkey’s ambition of expanding as a global automotive hub, by 2030. Among homegrown component manufacturers leading the drive are Ege Endüstri into axles, Ege Fren into the brake and associated parts, Tirsan into cardan shafts, steering columns, double-joint shafts, transmission and axle components for CV applications, Kirpart into engine components and Mapa into clutch kits to name a few.
l Manufacturing and Export
In 2018, Turkey produced an estimated 1.5 million vehicles to become the world’s 15th largest automotive manufacturer; the fifth largest in Europe. With a six per cent Year on Year (YoY) decline in production in 2019, vehicle production in Turkey stood at 1.46 million units as per the Automotive Manufacturers’ Association (OSD) data. The report cites a four per cent decline in Passenger vehicle (PV) production YoY down to 983,000 units. Commercial Vehicle (CV) www.autocomponentsindia.com
AUTO COMPONENTS INDIA n APRIL 2020
for Tractors with lower-rated engine power known to be sold with relatively lower profit margins. In unit terms, as one of the leading tractor markets, Turkey is flanked by Tractors supplied under brands like Armatrac, the export brand of Turkish manufacturer Erkunt Traktör Sanayi. Assembled in Sincan, on the outskirts of Ankara. Indian OEM Mahindra acquired the Turkish company in 2017 in a step-up drive to gain larger access to the Middle East and Europe, in a deal valued at USD 76 million.
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Micro Market production saw a nine per cent YoY decline of which Light Commercial Vehicle (LCV) production dropped by eight per cent YoY with Heavy Commercial Vehicle (HCV) production contracting by 18 per cent on a YoY basis. Exports declined by five per cent to settle at 1.25 million units with PV exports down by five per cent at 828,744 units. Interestingly, as per the Automotive Distribution Report (ODD), the demand for vehicles powered by small engines is said to have increased. For instance, vehicles with an engine capacity lower than 1.6-litre surged 98 per cent YoY in February while the sale of cars with 1.6-2.0-litre engines nose dived by 13.9 per cent. Demand for cars with engines over 2-0-litres decreased by 29.4 per cent as per the report. Sales of diesel cars decreased by 43.4 per cent. Cars with automatic transmissions jumped by 71 per cent.
AUTO COMPONENTS INDIA n APRIL 2020
It is noteworthy that an estimated 85 per cent of the overall
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vehicles manufactured in the region is directed to the export markets. This includes 70 per cent to the European Union alone. Exports to countries such as Germany, France, Italy, Romania, the United Kingdom, USA, Spain, Iran, Belgium, Poland and the Russian Federation are known to comply with European and International standards. Given the proximity to the Middle-East and Europe, undoubtedly gives Turkey a distinct marketing edge over competing markets especially pertaining to benefits inherited in case of transportation and logistics. Testimony to its stronghold in the aftermarket space is an estimated 500 companies known to supply spares across engine parts, tyres and tubes, accessories for bodies, road wheels and parts, rubber parts for motor vehicles and transmission crankshafts. The high export potential, in turn, has helped Turkey attract high foreign investment. ACI
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March 2020 April 2020
COMPONENTS
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ACI April 2020
City ..........................................................................
RNI No. MAHENG/2014/55824
High-Precision
DIE & MOULD MACHINING CENTRE
P R E C I S I O N … A C C U R A C Y…
850 V
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Solutions for various sectors
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• Sheet metal dies
• Tyre mould
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• Rubber dies
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• Bottle mould
• Auto component dies
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