AUTO COMPONENTS INDIA APRIL 2023

Aligning With Aftermarket Mega Trends

The Global Front Of Grupo Antolin

Vol 9 I Issue 01 I April 2023

8. Newscast

4 India objects to chips for America

4 ICRA on replacement demand in FY24

21. Aftermarket

4 The Aftermarket Landscape

4 Five OEMs get PLI approval for H2-FCEV

4 ACMA welcomes continuity in FTP 2023

4 SIBC and Maharashtra Government MoU

4 New Chairman of CII south

4 Leadership changes at Bosch India

4 New Chairperson at Schaeffler India

4 Rosneft partners IOCL

24. Trending

4 The Big Data On Mobility Trends

4 Brakes India turns to platinum brake pads

4 Uno Minda engine oil

4 Lifelong Group acquires GoMechanic

4 EU vows zero-emission by 2035

4 Tesla recall and inspection

4 Schaeffler acts on counterfeits

4 The Treasure Chest For EVs

4 ZF Steering India Looks Up

34. Exhibition And Conference

4 9Th ACMA MSME Summit

38. Globescan

4 New Assessment and Testing Methodology for Vehicle Type Approval - Part 1

41. Trendsmap

4 Social Media Highlights

AUTO COMPONENTS INDIA

608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.

Tel +91 9321546598, Email us at a.bhatia@nextgenpublishing.net

Executive Editor

Ashish Bhatia

Editorial Advisory Board

H. S. Billimoria, Aspi Bhathena

Head - Design & Production

Ravi Parmar

Correspondent: Prateek Pardeshi

Contributors: Deepti Thore, Sumesh Soman

Asst Art Director

Ajit Manjrekar

Production Supervisor

Dinesh Bhajnik

Publisher Marzban Jasoomani

Associate Publisher & General Manager (North & East)

Ellora Dasgupta (Mob No.: +91 987 104 8666)

General Manager – South

Girish Shet

Deputy General Manager – North & East Chanchal Arora (Delhi)

Regional Advertising Manager Raghul Krishnan R (Bengaluru)

Regional Manager

Rajesh Gogate (Mumbai)

Manager Circulation - North and East

Kapil Kaushik (Mob No.:+91 987 320 0589)

Subscription Supervisor

Sachin Kelkar Tel +91 9321546598

Apple Newsstand & Magzter Queries: help@magzter.com

Territory Sales Incharge (Circulation)

Srinivas Gangula (Hyderabad) Cell +91 09000555756

Territory Sales Incharge (Circulation)

Vidyasagar Gupta (Kolkata) Mob: 09804085683

REGIONAL MARKETING OFFICES

Next Gen Publishing Pvt. Ltd. 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai -400013. Tel +91 22 9321546598

Next Gen Publishing Pvt. Ltd.

Unit No. 109, First Floor, Sushant Plaza, Sushant Lok1, A – Block, Gurgaon, NCR - 122022

Next Gen Publishing Pvt. Ltd. S.No.261/G.L.R.No.5, East Street,Camp Pune - 411001.

A Battle Of Perspectives

The OEM and tier supplier equations have been largely a ground for fair play. There are exceptions and the government has resolved to intervene in such cases. With over 800 members, the Automotive Components Manufacturers Association (ACMA) of India is known to represent 85 per cent of the auto components industry’s turnover in the organised sector. In line with its charter to develop a globally competitive automotive components industry and play a larger hand in strengthening national economic development; promote business through international alliances, the apex body has taken a new stance. ACMA has joined the global ‘Right-To-Repair’ movement to safeguard the interests of suppliers and end consumers alike.

To support the critical movement, it signed the new position statement that lists the core beliefs of the movement and the objectives and intended outcomes of right-to-repair legislation. The document sets forth 10 best practice principles for developing a framework that any supporting country can use and adapt to their needs. That movement which applies to electrical appliances like smartphones, tablets and laptops also applies to automotive products further blurring the lines that separate a tech company from a conventional automotive company. The OEMs deem the enhanced access to mechanical and electronic data a safety risk even as suppliers push for it to be passed as a law. A middle path certainly bodes well for the consumer.

“The OEMs deem the enhanced access to mechanical and electronic data a safety risk even as suppliers push for it to be passed as a law. A middle path certainly bodes well for the consumer.”

Ashish Bhatia Executive Editor

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., 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.. Published by Marzban Jasoomani on behalf of Next Gen Publishing Pvt. Ltd., 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Printed at Uchitha Graphic Printers Pvt. Ltd., 65, Ideal Industrial Estate, Mathuradas Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400013, India., India. Published at Next Gen Publishing Pvt. Ltd., 608, Trade World, 6th floor, C wing, 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

Ashish Bhatia

ICRA on growth in replacement demand for FY24

India objected to ‘Chips for America’, a US programme with USD 280 bn funding. Introduced to address concerns about the US dependence on foreign chips.

Taranji Singh Sandhu, the Indian Ambassador to the US, is known to have raised this issue with US lawmakers. He alleges that it is against the spirit of World Trade Organisation (WTO) resolutions on Free Trade Agreements (FTA) and gives an unfair advantage. It would also increase trade barriers for new entrants.

India objects to chips for America Five OEMs get PLI approval for H2-FCEV

According to a recent ICRA study, the average age of M&HCVs is nearly 10 years in comparison to 7.3 years for PVs. The increase in demand has also had a favourable effect on aftermarket dealer and garage cash flows. Shamsher Dewan, Senior Vice President and Group Head - Corporate Ratings, at ICRA, said, “Original Equipment Manufacturers (OEMs) have undertaken periodic price hikes across segments in the last two to three years because of the changes in regulatory norms and cost inflation. Further, the semiconductor shortage and supply-chain issues have resulted in longer delivery time lines.” Dewan opined, the replacement demand would increase by six-to-eight per cent in FY24, driven by underlying demand factors such as rising mobility, strengthening economic activity, and wholesome freight movement.

The Minister of State (MoS) for Heavy Industry, Krishnan Pal Gurjar, informed the Lok Sabha, that five OEMs have received approval under the Production Linked Incentive (PLI) scheme for H2FCEV. These include Ashok Leyland, VE Commercial Vehicles, Pinnacle Mobility, Tata Motors, and Booma Innovative Transport Solutions. These five OEMs are now part of the approved 20 applicants by the Ministry of Heavy Industry (MHI) for the Champion OEM Incentive programme. The minister also informed the house regarding the development of Internal Combustion Engines (ICE), powered by hydrogen, hydrogenated CNG, and diesel.

Five new OEMs now part of 20 applicants for PLI.

The increase in demand favourably impacted dealer and garage cash flows.

The semiconductor chips are mostly imported from China and Taiwan.

ACMA welcomes continuity in Foreign Trade Policy 2023

Automotive Component Manufacturers Association (ACMA) congratulated the Government on announcing the promotion of exports under the Foreign Trade Policy 2023. Thanking the Union Commerce and Industry Minister, Piyush Goyal, Sunjay Kapur, President at ACMA, and Chairman Sona Comstar said, “The Foreign Trade Policy 2023 is another step towards a digitally enabled, Aatmanirbhar Bharat, coupled with measures that will drive India to become a significant player in global trade. Focus on continuity of remission of taxes, ease of doing business, technology-led enhanced trade facilitation, promotion of exports through e-commerce and wider engagement with states and districts to foster exports are indeed steps that will help us achieve the target of USD one trn in exports by 2030.” Vinod Aggarwal, President, SIAM and MD and CEO, VE Commercial Vehicles opined, “The auto industry would be substantially benefitted with measures like self-certification of origin, reduction of the threshold for status holders of exporters, enabling rupee payment and reduced export obligation under the EPCG scheme for electric vehicles.” “These measures will go a long way in propelling exports from India, as Indian vehicle manufacturers are increasingly focusing on widening their footprint,” he added.

SIBC and Maharashtra Government MoU

The Sweden-India Business Council (SIBC) and the state government of Maharashtra signed the Memorandum of Understanding (MoU) for cooperation in the areas of waste to energy, sustainable infrastructure and transportation, and investment in and manufacturing of defence products. Signed in the presence of Devendra Fadnavis, Deputy Chief Minister of Maharashtra, Prashant Agarwal, Member of Board, SIBC said, “The Swedish industry will continue to expand and invest in Maharashtra. This MoU intends to support the two entities to reach a deeper collaboration for a more sustainable future and further the targets of job creation and technology cooperation.”

New Chairman of CII south chapter

The Confederation of Indian Industry (CII) Southern Region has elected new office bearers for the year 2023-24, with Kamal Bali, President and Managing Director of Volvo Group India, being elected as the Chairman. Dr R Nandini, Managing Director of Chandra Textiles Pvt. Ltd., Coimbatore, has been elected as Deputy Chairperson. Bali has previously held leadership positions within CII, including Deputy Chairman of CII southern chapter and Chairman of the Manufacturing Sub-Committee, CII-SR. Dr Nandini is an active member of CII and has held various leadership roles, including Past Chairperson of CII Tamil Nadu and CoChairperson of CII National Council Task Force on rural development and migrant workforce. Both Bali and Dr Nandini have experience serving on the boards of various organisations, including government enterprises and educational institutions.

New Chairman and Deputy Chairman at CII Southern Chapter.

MoU a collaboration to ensure a sustainable future.

Policy 2023 a step towards USD one trn economy.

New appointment at Bosch India for strategic expansion.

Leadership changes at Bosch India

Sumithasri Eranti takes over from Avinash Gandhi.

New cooperation on crude oil, petroleum products, and petrochemicals.

New Chairperson at Schaeffler India

Schaeffler India Ltd. announced the appointment of Sumithasri Eranti as the new Chairperson of the Board of Directors. With over 25 years of experience in business leadership, technology, consulting and the financial services industry, Eranti brings a wealth of knowledge and experience to her new role. She has held various roles in technology companies - global service portfolio leadership, CXO collaboration, P&L ownership, large account management, business consulting and product development. She possesses multicultural multicultural experience of living and working out of 11 countries including Germany, India, the USA, the UK and the Netherlands. Eranti has been an Independent Director of Schaeffler India Board since 2020. Eranti takes over as the Chairperson from Avinash Gandhi who retired after a two-decade stint.

Guruprasad Mudlapur will be appointed President of the Bosch Group in India and Managing Director of Bosch Limited effective July 01, 2023. Guruprasad’s new position entails responsibility for the strategic expansion and overall success of the company in the area. He will still serve as Chief Technology Officer (CTO) during this time. In his past roles, he has served as the Regional President and Managing Director at Bosch Automotive Electronics Pvt. Ltd. In a significant change of guard, Soumitra Bhattacharya will retire on June 30, 2023, after a nearly three-decade stint at the organisation. In 2017, he assumed the position of Managing Director of Bosch Ltd. and President of the Bosch Group in India. Before that, he served as the Chief Financial Officer (CFO) and Joint Managing Director. Sandeep Nelamangala will take over as the Joint Managing Director of Bosch Ltd. He is currently the Executive Director at Bosch Ltd. and Executive Vice President of Mobility Solutions at Bosch India.

Rosneft partners IOCL

In a significant move, Rosneft, Russia’s leading oil producer has partnered with Indian Oil Corporation Ltd. (IOCL) to expand its presence in India. The two signed an agreement to seal the cooperation on crude oil, petroleum products, and petrochemicals. The deal is expected to give Rosneft access to a large market while IOCL could leverage the Russian company’s expertise in exploration, production, and refining. The agreement was signed during the 2021 visit of Russian President Vladimir Putin.

Brakes India turns to platinum brake pads

Brakes India launched platinum brake pads. Aimed at luxury cars, the category is launched under the friction brand TVS Apache. The brake pads are said to have been designed with an unique abrasive film that claims higher performance. It is claimed to be engineered for global specifications with premium formulation to deliver quiet and high-performance braking without compromising on brake life. The front brake pads are environmentally friendly with premium copper-free formulations to meet the highest N compliance level in line with the SAE J2975 specifications.

Uno Minda engine oil

Uno Minda Group has come out with a high-performance BSVI compliant engine oil for two-wheelers. The new engine oils are claimed to offer superior performance, protection, and fuel efficiency. The range includes four variants of engine oils specifically formulated for different types of engines. These new additions have been categorised into PerfoMaxx in mineral grade recommended for 100-125cc motorcycles and scooters, and Purosynth, a semisynthetic engine oil recommended for 125-150cc motorcycles. The Ultimo is recommended for the 150cc and above segments.

Sunil Bohra honoured

Sunil Bohra, Chief Financial Officer (CFO) at Uno minda Ltd. is the ‘CFO Of The Year’ at Assocham Vibrant Bharat awards. Recognised for his outstanding contribution to the business, especially during difficult times of rising interest rates and inflation, administering cash flows amid a recession, and navigating the impact of geopolitical developments, technology, tax, and regulatory environment. On receiving the recognition, he expressed, “I am humbled and thank ASSOCHAM for this recognition. The industry has seen an enormous transition over the course of the past few turbulent years. As a company, we have come a long way in terms of navigating successfully in these extremely difficult global times and establishing new standards. Receiving the CFO Award is a recognition and one of the milestones of our team’s accomplishments and the achievements. I sincerely appreciate our team’s ongoing support and hope to see more accomplishments of this nature in the future.”

Lifelong

Group acquires GoMechanic startup company

GoMechanic is not in the best of financial health. From a valuation of USD 250 mn, the company was acquired at an estimated USD 30 mn. With serious admissions of misappropriation, it has run its natural course. As part of a slump sale, it is claimed that the company had run into a USD 20 mn debt. (~ Rs.150160 crore). Specialising in plastics and polymers. With ~800 workshops as its listed assets, the startup company is known to have raised over USD 60 mn. Its valuation had been severely dented as a result. “This transaction will assist in preserving the ecosystem at large and also enable providing continued livelihood to the employees at GoMechanic,” said Lifelong Group, now a majority investor in GoMechanic, in a statement.

GoMechanic acquired for ~USD 30 mn.

Sunil Bohra recognised for his outstanding contribution.

Platinum brake pads for high performance.

Newscast I International EU vows zeroemission by 2035

European Union member states gave final approval to a plan that would require all new cars sold in the EU to be zero-emission effective 2035. “The direction of travel is clear: in 2035, new cars and vans must have zero emissions,” European Commission Executive Vice President, Frans Timmermans said in a statement. “The new rules on CO2 emissions from cars and vans are a key part of the European Green Deal and will be a big contribution to our target of being climate neutral by 2050,” he added. It’s part of the larger ambition to address climate change by reducing greenhouse gas emissions. The plan also requires that, by the year 2030, the average emissions of new cars drop by 55 per cent and by 50 per cent in the case of vans with 2021 as the base line.

Tesla recalls and inspection

Tesla Inc. has issued a voluntary recall for the Semi truck. 35 Semi trucks were affected, according to recall filings published on the National Highway Traffic Safety Administration’s (NHTSA) website. Supplier Bendix discovered a flaw in the electronic parking brake valve module used in the trucks in February 2023. The parking brake valve module will be replaced by a revised part with improved internals that prevents air leakage and let the driver engage and disengage the parking brakes. In another instance, the steering wheel falling off on a Tesla Model Y SUV was reported. NHTSA in the US has launched an investigation into Tesla. The enforcement agency reported that it is aware of two distinct incidents in which 2023. According to the NHTSA, the vehicles were delivered without the required retaining bolt that holds the steering wheel to the column. Before determining whether the impacted Model Y vehicles need to be recalled, the investigation will ascertain how frequently the problem manifests itself.

Schaeffler acts on counterfeits

Schaeffler wants to curb counterfeits. In Schweinfurt, the company is known to have destroyed approximately 30,000 counterfeits weighing a total of 10-tonne. The products were heavily damaged in the first step of the destruction process at the Riwald Recycling Franken GmbH premises in Schweinfurt-Sennfeld to render second-life use impossible. The scrap will now be compressed and melted down in steelworks, and reintroduce resource steel into the recycling loop. Bearings that are forged originate from all over the world. When a distributor or customer is presented with a questionable product, such as one from the INA, LuK, or FAG brands, the Schaeffler ‘OriginCheck’ app can be used to verify the originality. Using a smartphone to scan the product code and comparing it to the corresponding Schaeffler product identification numbers is one way to do this. The damage to German companies caused by product piracy is estimated at around Euro 6.4 bn annually as per a VDMA statistic. India apex body, ACMA is also playing a key role in creating awareness to reduce counterfeits.

Tesla recalls in focus.

EU sets 2035 as the deadline.

Schaeffler destroys 10-tonne of counterfeits.

Aligning With Aftermarket Mega Trends

Uno Minda has built a robust aftermarket portfolio to align with the mega trends. Ashish Bhatia reports on the focus areas and the key additions driving them.

Ashish Bhatia

@atashishbhatia

Cover Story

Like its peers, the Uno Minda Group has worked out efficiencies to face the supply chain bottlenecks and the contingencies around skilled labour. It is also dealing with poaching from the tech industry known to have a similar set of requirements when it comes to trained manpower. In comparison to the tech industry facing the heat of a challenging micro and macro economic environment, Uno Minda and the industry as a whole are confident of tapping the diverse set of opportunities coming their way. Speaking for the former, Nirmal K Minda, Chairman and Managing Director, of Uno Minda Group is of the firm belief that the next decade will witness changes at an unprecedented pace unlike in the past four decades. Expecting the industry to scale 2-2.5x of the Gross Domestic Product (GDP), the group has well-demarcated strategies for both its OE sales as well as the aftermarket. Any diversification is undertaken only with the customer’s

consent and with a suited joint alliance put in place.

Taking along JV partners, some dating back three decades, the motto is to combine the partner’s manufacturing capability and leverage the inherent low-cost manufacturing prowess. With a laser-sharp focus on localisation under the Production Linked Incentive (PLI) scheme, the company is equally concerned with the welfare of its stakeholders who aspire to penetrate deeper into the domestic market. For those stakeholders, with export aspirations, the company steps in to help bring down costs further. In addition to a strategy adopted for its OE supplies, the company has also aligned its aftermarket portfolio to the needs arising out of mega trends like personalisation, autonomous, connected, and electrified.

Aftermarket strategy

The aftermarket segment has had its share of ups and downs. Over

the last few years, especially during Covid-19, where there were serious issues with the availability of spare parts. “But there are many companies who did very well in that period. And I think the ones who started earlier, could manage the long-term spending and also managed the supply chains very well,” shared Rakesh Kher, Chief Executive Officer, Aftermarkets Division, Uno Minda Ltd. While admitting to demand not being as robust or deep, he expressed confidence in the situation being far more favourable today and not as challenging. “The demand

Nirmal K. Minda, Chairman & Managing Director, Uno Minda Ltd.

Rakesh Kher, CEO, Aftermarkets Division, Uno Minda Ltd.

Cover Story

has remained intact and a CAGR of 12-15 per cent will be maintained,” he opined. He further explained that demand was closer to the 2019 peak which was a benchmark for the aftermarket. The demand is robust and continues to grow, he reiterated. Independent of the government interventions, Kher explained that the aftermarket segment was a reflection of the general sentiment instead. “People have to invest money in inventories, and they plot the inventories accordingly. Here, the fast-moving inventory has been much sought after over the laggards as a way to deal with uncertainties arising over the past two years,” he averred. Going by the past trends, products like filters, brake pads, and suspension will continue to bring in the repeat orders. Going forward, the company expects all kinds of parts to move swiftly where shortages could be a bottleneck in the supply demand equation, he cautioned. The company continues to maintain the apt inventory buffer, he claimed. The aftermarket exposure to OEMs is pegged at an estimated 10 per cent nationally in a ballpark estimate.

The big change

In a largely unorganised segment like the aftermarket, players like Uno Minda are striving to transform the conventional ways of doing business. Admitting to the aftermarket undergoing a sea change in the past decade, Kher mentioned, today the preference of branded products is higher than previously. “More and more customers in this low awareness industry are going for branded products,” he stated. Attributing this shift of preference to the pandemicinduced lock downs, Kher reasoned that the customer was forced to look up parts, online. This is said to have been a big draw for branded spares and benefitted the organised players. The trend of ‘Do It Yourself’ as a direct

Cover Story

outcome translated to independent decision-making, curbing the say of mechanics who earlier are known to have had the power to push a particular brand.

The change is also driven by commodity prices. “And the commodity prices went through the roof. Yes, it doubled in some cases, and tripled too. It manifested the selective procurement of commodities where prices soared, and resulted in supply-side moderations,” admitted Kher. The industry as a whole, wiping off counterfeits from the aftermarket also encouraged buyers to lookout for genuine spares in addition. This involved a mammoth exercise with efforts involved in creation of new and modern packaging, holograms printed through quality vendors in a bid to make it tougher for the grey market to replicate originals. Brushing aside a brew of consolidating trends on the path to organising the aftermarket segment, Kher quipped, in the aftermarket, where there are umpteen business models, consolidation was near impossible. The absence of data is the biggest detriment, he pointed.

Streamlining the value chain

In the aftermarket, the value chain relies on the distributor. “He’s the primary node where we bill the materials, and then it goes to the retailer from where it is further distributed to the mechanic,” clarified Kher. This is at the core of the aftermarket model and will take some serious doing if it were to be altered. However, the disruption could stem from a transition of this B2B model to a B2C model wherein the aftermarket players deal with the customer directly. This could in turn imply direct sales through an aftermarket player’s website and so forth, he explained. Startups here, could enforce this transition

faster over the more conventional players. A layer could emerge where the startup would purchase the spares from the tier 1 supplier and reach it to the garage instead in an attempt to streamline. This attempt could result in partnerships fructifying at a macro level. Its relevance to the supply chain has skyrocketed in the eyes of Kher. The elimination of middlemen has also had a direct bearing on the gross margins, he confirmed.

A stable outlay

The growing electronic content

per vehicle has had the company in good stead. True to its forte, the offerings are being tailored to enhance on road safety as a priority focus area. However, Kher ruled out any major tipping point or for that matter an inflexion point for the aftermarket. With the vehicle parc rising, the growth of the aftermarket is secured. The used car market doubling in the past three years, driven by the soaring prices of new two-wheelers primarily and fourwheelers following suit. The long delivery time lines are also among the reasons driving the shift in personal mobility preferences, he said.

On the growth proposition, Kher added that the focus continues to be on growing the market share of the existing product range. To support this approach, the company is well aware of the key contributors like the distribution channel can bring in. Building a robust network continues to be a high priority focus area for the Uno Minda Group. This will require constant engagement with the distribution channel to the extent of sharing a fiveyear road map to win their confidence. “This is the only way forward,” he concluded. ACI

Cover Story

The Global Front Of Grupo Antolin

Grupo Antolin is a global supplier of car interior technology. With its global design and business centre in Pune, the company is looking to support all the major car OEMs worldwide on automotive interiors including product design, product simulations, Product Lifecycle Management (PLM), project support, IT support, logistics support and environment compliance. The centre employs over 250 people and the company hopes to provide additional employment to another 150-250 people at this centre alone in the coming years as per Chief Executive Officer, Ramón Sotomayor. At an allIndia level, the company employs nearly 1500 people. “The company has been operating in the country for quite some

time now and it has built up a strong base, the new offensive and initiative will strengthen the already existing base and create new opportunities for employment and growth,” Ramón averred.

Integrating tech

With nearly a two-decade presence in India, Group Antolin has been operating out of five manufacturing facilities across Maharashtra, Tamilnadu, Karnataka, Haryana and Gujarat. From these state-of-the-art facilities, the company supplies car interior components to all major OEMs that include Tata Motors, Mahindra & Mahindra, Volkswagen India, Hyundai Motor India, Toyota Kirloskar Motor, Maruti Suzuki India, Honda Motor Co., Renault India, Nissan Motor India, and

The new global design and business centre of Grupo Antolin at Pune will serve as a global front. Sumesh Soman sets the expectations right.

@SumeshSoman_ Sumesh Soman

Cover Story

MG Motor India. A market leader in overhead systems, it stakes claim to an estimated 75 per cent market share in India. The company supplies door panels, ambient lighting, hard and soft trims. As part of a global strategy, the company also works to integrate new technologies in the vehicle interior, from HMI functions to functional lighting, and smart surfaces with high perceived quality. The company focuses on helping car makers develop advanced, technological, and sustainable automotive interiors that are claimed to offer passengers a unique on board experience. This means being close to customers in the main production markets, such as India, and adapting to their needs and meeting their requirements.

The India opportunity

India is a key focus market and a front for the company’s global strategy. The objective is to consolidate its position as a leading provider of automotive interior technology solutions. The company’s sales in India grew by 47 per cent in the first six months of the year 2021, up to Euro 42 mn. The company expects the growth momentum to continue in the coming

years. Here the orderbook from Skoda, Volkswagen, M&M and Tata Motors are expected to hold the company in good stead.

The global automotive interior market is expected to grow from USD 122.56 bn in 2021 to USD 133.78 billion in 2022 at a Compound Annual Growth Rate (CAGR) of 9.2 per cent,

according to a Research and Markets analysis. The automotive interior market is expected to reach USD 167.90 bn in 2026 at a CAGR of 5.8 per cent. Asia Pacific was the largest region in the automotive interior market in 2021 and is expected to be the fastest-growing region in the forecast period. Here India is expected to create demand as the world’s largest population and thus being the largest market as well. Explained Chairman, Ernesto Antolin, “Now, since the pandemic is out of the picture, OEMs are gearing up for full swing operations and making the most of this new surge in demand.” “While there are other external factors looming large, such as the Russia-Ukraine war, chip shortage and supply chain bottlenecks, OEMs are still trying to release new products in the market,” he stated. The India operations in 2021 garnered a revenue of Rs. 639 crore (6390 mn). Asia Pacific as a whole accounted for 14.6 per cent of the overall sales. North America accounts for a majority of its sales at ~ 32.9 per cent.

With the facility in Pune, Maharashtra, the company aims to

Cover Story

Evolution at Grupo Antolin

The product evolution of the company has been gradual and diverse. In the early 2000s, the company focused on headliners and sun visors and then introduced AC ducts and consoles for the Xylo in 2009. In 2010, the company provided a window regulator for the Verito, and parcel tray and wood stock technology were introduced in 2013. The company also entered a JV with KASAI KOGYO for injection moulding of door trims for Nissan. In 2014, the Greenfield plant at Sanand, Gujarat for injection moulding and hard trim was set up along with the acquisition of Machino Autocomp Ltd. for plastic trims. The company then moved on to providing interior parts for the Tata Tiago, Mahindra Scorpio to name a few. In 2019, the company ventured into ambient lighting and in 2020, lighted consoles also became a part of the portfolio.

expand its footprint in the country along with localisation as one of the key objectives. The cost of products can be impacted significantly if it realises economies of scale. Exports will also see a rise. “With the new investments and India offensive,

we are expecting a strong demand from the market, especially with the advent of electric and other alternative fuel power trains, we can expect steady and strong growth in the future with new products and innovation,” Ernesto concluded. ACI

Headliner and Sunvisor

Headliner with AC duct and console of Xylo

Introduced parcel tray with wood stock technology.

JV with KASAI KYOGO for induction molding of dorr trims of Nissan

Window regulator for Verito

@Prateek2101

Prateek Pardeshi

The Aftermarket Landscape

The aftermarket segment has continued its upward trajectory. Valued at an estimated Rs.42,007 crore, the segment registered an eight per cent growth. The fiscal (FY23) gone by has given the stakeholders of the organised industry good momentum to carry into the next fiscal (FY24). The largely unorganised segment, albeit, has the smaller stakeholders tackling challenges.

Profitability a challenge

R. B. Electronics from Mumbai is thriving hard to turn profitable. Today the turnover is pegged at Rs.200

lakh (purchase of Rs.80 lakh and sale of Rs.120 lakh). The revenue gets further eroded by fixed expenses. That leaves room for profitability at an estimated 25 per cent. Founder, Rambriskh Yadav, informed, “The heavy reliance on semiconductors has translated to heavy losses. He explained, “We are heavily dependant on imports and have to shell out heavy taxes in the range of 18-28 per cent”. The reversal of import duty and higher local procurement is crucial, he opined. He urged the government for policy interventions that impact not

The growth potential of the aftermarket segment is undisputed.

Prateek Pardeshi gets in touch with the community to understand the grass root challenges.

Aftermarket

only the bigger players but smaller stakeholders like itself. The controller is a spare part and not a finished product, but still, the government imposes 28 per cent as an import duty, he said. Of the opinion that if the government were to encourage the local production of controllers and then levy a 30 per cent tax, it would be more feasible. He urged the government to extend support and reverse the heavy taxes eating into profitability. This in turn would help bring down finished goods prices.

Brick and mortar versus online

Tyres are required to be changed every 40,000 km on an average. A local vendor, Mohandas Govind, owner of Janta Tyres, based in Mumbai has been in the business for nearly three decades. A multi-brand shop dealing in Michelin, Bridgestone, and MRF, tyres among other major brands, he explained that the inventory levels were a factor of customer demand. He claimed that

a majority of tyre manufacturers give disproportionate incentives in return for business generated by a distributor as another challenge. Informing that in the case of passenger cars, retreading had lost sheen and customers today preferred only used tyres subject to the wear and tear. Retreading albeit is still popular in the case of commercial vehicles, he asserted.

The lower margins of e-commerce continue to weigh down on the retail business. In the case of the latter, a major chunk of profit goes into labour wages and capital costs to set up bays for wheel balancing, and alignment. Alleging that in the case of the former (online), it was the dead stock being pushed and that the customers were shortchanged in comparison to the retail experience. “We have to deal with dead stock, the majority of which is sold at a lower price and other old tyres are sent back to the tyre manufacturer,” he explained. On the CapEx front, the cost of a wheel alignment and balancing setup sets us back by up to Rs.15 lakh, he claimed.

Localisation

Moving beyond the B2C business hardships, the B2B companies have their own tale to tell.

Tropicool Car Gadgets

Pvt. Ltd. (Tropicool) is into safety products and other premium electronic components that are a high-margin business. “We manufacture a few components here and import a few components. One example is the rear camera. As OEMs are

Couplers manufactured at R. B. Electronics

ADAS system by Tropicool

mandated to pay 28 per cent as import duty on a few components while for most of the other products we have to pay 18 per cent,” he seconded the popular opinion. Atul Pandure of Tropicool stated, “The energies are focused on reducing costs and improving operating margins.” The OEM with a manufacturing plant in Hinjewadi, Pune hopes for a far better FY24 though given the cyclical uptrends being witnessed at large. Hedging its losses by keeping a fairly diverse product portfolio, the clientele boasts of the likes of Daimler, Volvo,

Cover Story Aftermarket

Data breach

Aditi Tracking Support Pvt. Ltd. (Aditi Tracking) into telematics is yet to fully recover from the Covid-19 aftershocks. Bound by Non-Disclosure Agreements (NDAs) while the company cannot share its clientele, it is a leading aftermarket provider of ADAS kits with a product journey of eight years on average. Taking pride in distinguishing itself on aftersales service, it charges a premium in exchange. This is a sustenance strategy the company has adopted. The complete production of devices is localised in India. Saajan Jain, of Aditi Tracking, said, “The journey to realise the profits entailed high wait periods. Cracking a deal with OEMs is a lengthy process, at times it almost takes one year or beyond.”

On EVs presenting an opportunity, Jain said it was early days with an up to two per cent penetration. In the short term, this won’t have a significant bearing on the revenues, he shared. Similarly, the export opportunity is yet to be realised by the company like many peers. ACI

Tata Motors and the erstwhile Tata Marcopolo.

Wheel Balancing at Janta Tyres

Aditi Tracking devices

At the 14th Edition of Apollo CV Awards 2023, Barnik Chitran Maitra, Managing Partner and Chief Executive Officer of Arthur D Little (ADL), India and South Asia drew attention to big data. Ashish Bhatia

The Big Data On Mobility Trends

The 14th Edition of Apollo CV Awards 2022 had a special guest speaker. Barnik Chitran Maitra, Managing Partner and Chief Executive Officer of Arthur D Little (ADL), India and South Asia as the keynote speaker banked on big data to put his points across to the stakeholders of the CV industry. Not your typical mobility veteran, as the chief of one of the oldest global management consulting firms in the region, Barnik is credited for creating the fastestgrowing management consulting firm in India. Scaling the firm from zero consultants in 2022 to over 100 consultants by the end of 2023. He brings with him the experience

of having counselled Fortune 500 companies and leading Indian conglomerates on growth, innovation, technology and transformation. An experienced strategy and corporate finance practitioner and a well-known subject matter expert speaker, he is also the Board advisor for several large multinationals and family-owned businesses including Alphabet and Facebook.

The backdrop

Barnik began his speech by thanking Next-Gen Publishing Pvt. Ltd. and the Commercial Vehicle Magazine. He shifted gears to cite how the frequency and intensity of disruptions had drastically increased over the past

deciphers the cues on mobility trends expected to impact components suppliers.

Ashish Bhatia

@atashishbhatia

decade. “This has challenged the commercial vehicles market globally,” he stated. Pointing to the disruption in the market, he went deeper into challenges thrown the industry’s way against the grim backdrop of Covid-19, Suez Canal obstruction and the Russia-Ukraine war businesses have had to deal with. He dived deeper into the headwinds like the supply chain crisis, energy crisis and rising inflation. His presentation drew attention to 75 per cent of all chip manufacturing activities concentrated in North Asia – poor political relationships with Western economies hamper the supply chain. The result of which is a component shortage and a direct bearing on the production and delivery timelines with delays imminent. He gave an example of European electricity prices known to have soared owing to the energy crisis. Reduced margins for suppliers and production cuts as a result. He also touched upon real GDP growth in select markets that have instilled fears of recession and negatively impacted consumer sentiment.

Trending

Frequency and intensity of global disruptions has drastically increased over the last decade, challenging the commercial vehicles market globally

Against this low base, he moved on to the recovery in global production and trade leading to overall global CV market growth. “However certain markets face a decline in sales due to their affiliation with global disruptions,” he cautioned. Comparing global CV production of varied geographies against the response of different regions with CV registrations as the defining metric. He highlighted improved freight

and logistics activities, increased government CapEx on infrastructure development-related projects and the resultant uptick in demand from the construction, agriculture and mining sectors. Infrastructure CapEx alone increased by 33 per cent in the Union Budget 2023.

Tailwinds

The tailwinds, as per Barnik, would only lead to the CV industry attaining

Trending

With stronger tailwinds, the Indian CV sales & production levels are projected to grow back to pre-pandemic levels and grow in line with GDP thereafter

pre-pandemic levels and growing in line with the GDP from thereon. The industry is forecasted to register a volume growth by a 20 per cent margin in FY23 at a CAGR of eight per cent. He attributed this to tailwinds like an improved macroeconomic environment, growing infrastructure on one end of the spectrum and pent-up demand and replacement cycles, and e-commerce growth on the other end of the spectrum. The industry will play catch up to the prepandemic levels in the short term and is expected to grow at double-digit scales, he opined.

The growth will come from the Light Commercial Vehicles (LCV), the fastest-growing segment as per the

Mobility Trends in Commercial Vehicles

study. In addition to the development in India’s e-commerce sector where e-LCVs are the answer to the pledges of fleet decarbonisation, the study attributed the demand from FMCG and infrastructure for further fueling the growth of the LCV sector postpandemic. LCV sales grew by a margin of 59 per cent on a Year-overYear (YoY) basis in the first half of 2023 (H1-FY2023). On headwinds, Barnik drew attention to the highinterest rates impacting CV financing and increased commodity prices as well.

Definite trends

The Arthur D. Little analysis pointed to mobility trends to align decision-

making with. The rate of electrification is faster than expected earlier. The scale of alternative fuels and new technologies like natural gas will only go up. The last-mile connectivity market is expected to sustain growth over the next decade and last but not least. The demands of digitalisation and connectivity will only go up courtesy of a smart and efficient automotive ecosystem. Barnik also pointed at the heightened shift to servitization and XaaS. Where the focus is on vehicle sales, adjacent services present an opportunity. Vehicle-as-a-service, Energy-as-aService and Logistics-as-a-Service are the other ecosystem-centric opportunities.

Global emobility market

The global electric CV market is forecasted to grow at a CAGR of 25.1 per cent during 2023-28. Barnik pinpointed the use of electric propulsion technology provided by a majority of Indian CV players. Barnik drew parallels with the traction witnessed in India and the constant sales growth and R&D investment in the electric bus and truck segment globally. He projected that by 2030, India is estimated to have three lakh electric CVs almost 100x with 2023 as the base. “It is noteworthy that most market segments are led by new entrants specialising in electric variants,” he mentioned. The study covered a diverse mix of players, from majors like Tata Motors, Ashok Leyland and VE Commercial Vehicles to new entrants like YC Electric Vehicles, Omega Seiki Mobility (OSM), and PMI Electro Mobility Solutions.

Decarbonising the CV sector

For the CV sector to be decarbonised, a range of solutions is required. “Size matters,” quipped Barnik. Electrification will be most suited

CV Growth Dynamics in India

and efficient automotive ecosystem demands digitalisation

mile connectivity market will sustain growth in the

business models are shifting towards servitization and XaaS

Trending

to smaller vehicles given that these vehicles offer greater flexibility in terms of using smaller and lighter battery packs, and the option to swap. Speaking on the way forward with hybrid solutions and alternative fuels, he gave the example of mid-sized cars (applicable to fleet operations), commercial vans, and trucks to make a case for different technologies being deployed. This spans the universe of bio-fuels like ethanol, CNG, and hybrid electric motors. Making a case for hydrogen fuel cells, he reasoned that with the large energy consumption of Heavy-Duty trucks, there is a ready-use case for the “easiest, cleanest fuel to handle.”

Fully solutionsintegrated

Case-in-point a fully integrated solution, Barnik gave the example of RIO that covers significant parts of the value chain and said to digitalise the end-to-end process. The claimed, brand-agnostic platform, works such that it offers a package of digital services that in turn interconnect everyone involved in the supply chain on an open-source platform. From telematics to transport management, driver communication, and supplier hub to outbound order book.

In the concluded leg of his address, Barnik summarised by urging the industry to make the most of the opportunities at hand. He suggested that to cater to the e-mobility ecosystem, the industry could look at developing in-house capabilities or partnerships. They continue to invest in different fuel technologies across segments to sustain a net zero future. Prioritise enhanced logistics and customer experience to capture last-mile connectivity demand. Acquire or partner with software/IOT players and develop in-house software capabilities. Understand primary and target customers to explore new-age business models like XaaS. ACI

Global electric CV market is forecasted to grow at a CAGR of 25.1% during 2023-28 with electric propulsion technology being provided by almost all Indian CV players

Decarbonizing the mobility sector especially the commercial vehicles demands for range of technological solutions, depending on size

RIO is an example for fully integrated solutions, connecting significant parts of the value chain and digitalizing the end-to-end process

The Treasure Chest For EVs

The Indian EV industry wore a scar despite vying for a ‘Made in India’ status. The imports of lithium-ion battery packs until local produce picked up pace proved a sore point for the industry. It continues to dictate EV prices despite the fall of battery costs at a 10 per cent CAGR estimated by Bloomberg between 2018-24. Despite the subsidies extended

under schemes like the FAME II scheme and incentivisation through Production Linked Incentive (PLI) for Advanced Chemistry Cell (ACC), the EV ecosystem weighs under the high procurement costs of rare earth metals like lithium. The PLI outlay alone is Rs.18,100 crore for five years from May 2021, to give a perspective. No wonder then, the recent discovery of lithium in Jammu & Kashmir (J&K) has

The discovery of lithium-ion reserves in India changes the IndiaEV equation. Ashish Bhatia explains the big deal about the new found, treasure chest.

Ashish Bhatia

@atashishbhatia

given a new lease of life to Original Equipment Manufacturers (OEMs) betting big on EVs. More and more EV players are today collaborating with companies they can leverage to have greater control of the end-toend value chain for standardisation and realisation of better Economies of Scale (EoS).

The advancements in battery technologies such as metal-air, solidstate, and lithium-sulfur batteries continue to be under research. The dependence on rare earth metals continues. Battery until recently was estimated to account for 30-35 per cent of the cost in the entire value chain as per the status quo analysis of EV segments undertaken by the Nature Conservation and

Trending

LITHIUM IMPORT AND PRODUCTION IN THE COUNTRY

Table 1: Total Import of Lithium (HS Code: 85065000) and Lithium-ion (HS Code: 85076000) from 2018-19 to 2020-21 (Quantity in Thousand numbers, Value in Rs. Crore)

Source: Department of Commerce

Trending

(Quantity in Thousand numbers)

Nuclear Safety (BMU), the Nationally Determined Contribution-Transport Initiative for Asia (NDC-TIA), a joint project of seven organisations that had China, India, and Vietnam part take on behalf of the German Federal Ministry for the Environment. It is no secret that rare earth metals like lithium, nickel and cobalt assume significance. According to the World Economic Forum (WEF) study, battery recycling apart from unearthing reserves would be crucial to provide nine per cent of lithium, 13 per cent of the global battery demand for cobalt, and five per cent of nickel in 2030. R&D allocations will also be key.

Lithium Reserves

The Geological Survey of India (GSI) made headlines when for the first time it established Lithium inferred resources (G3) of 5.9 million tonnes

in the Salal-Haimana area of Reasi District of J&K (UT). There are further exploration activities in store for J&K when it comes to identifying lithium resources. It is only post the completion of further exploration that the estimated value of lithium in J&K will be known. As a followup exercise, GSI is also known to undertake another reconnaissance G4 stage exploration programme on lithium and associated mineral in the Panasa, Dugga, Baldhanun, Chakar, Sangarmarg (Saro-da-Bas) area of the Reasi district. The GSI is known to generate the baseline geoscience data through mapping that entails geological, geochemical, and geophysical as a prerequisite for identifying the potential area for systematic mineral exploration. Based on the mapping outcome the exploration programme will extend to

various mineral commodities that will be expanded to pan India.

Coming back to lithium alone, GSI and Mineral Exploration & Consultancy Ltd. (MECL) a number of exploration projects in lithium are expected to be undertaken. A driving factor is that the Ministry of Mines provides 100 per cent funding from National Mineral Exploration Trust (NMET) to the state governments and private exploration agencies for taking up lithium exploration projects. The Atomic Minerals Directorate for Exploration and Research (AMD) of the Department of Atomic Energy, explores lithium in parts of Mandya and Yadgir districts, Karnataka. Khanij Bidesh India Ltd. (KABIL), a Joint Venture (JV) of three CPSEs under the Ministry of Mines, is known to have signed a Non-Binding Memorandum of Understanding (MoU) with

Table 2: Country-wise import of Lithium (HS Code: 85065000)

Source: Department of Commerce

three State-owned organisations of Argentina. The MoU entails information sharing on prospective mineral acreages of lithium. In addition, a G2G MoU has been signed between the Government of India and the Government of Australia for cooperation in the field of mining and processing of critical and strategic minerals such as Lithium. KABIL has signed a detailed MoU with the Critical Minerals Facilitation Office (CMFO), Department of Industry, Science and Resources (DISER), Australia for identifying lithium and cobalt assets for joint investment decisions.

15 other resource-bearing geological reports (G2 & G3 stage) and 35 geological memorandums

Trending

are also on the lines. These have been submitted to the respective state governments at the time of the 62nd Central Geological Programming Board (CGPB) meeting held on February 09, 2023. Out of these 51 mineral blocks, barring gold, some blocks boost resources of commodities like potash, molybdenum, and base metals spread across 11 states of Jammu & Kashmir (UT), Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu and Telangana. It is noteworthy that the blocks were prepared as an outcome of studies undertaken by the GSI from the field seasons of 2018-19 to date. Coal and lignite reserves have also been

found. That’s not it. In 2023-24, GSI will take up 966 programmes comprising 318 mineral exploration projects including 12 marine mineral investigation projects. It is based on the priorities set by the Government of India and the importance and urgency of proposals presented by the members and stakeholders, the Annual Programme of GSI is given a final shape.

Global benchmarking

In 2009 when China is known to have adopted a New Energy Vehicle (NEV) plan to leapfrog existing automotive technologies, it launched a pilot in 10 cities. Among policy measures to promote NEV, China mandated government procurement, reduced

Table 3: Country-wise import of Lithium-ion (HS Code: 85076000) (Quantity in Thousand numbers)

Source: Department of Commerce

Trending

taxes, direct subsidies to manufacturers, consumer subsidies, industrial policy ‘Made in China 2025, NEV credit targets, and subsidised the charging infrastructure. To boost the local supply chain of EV components key strategies adopted by China through above mentioned policy measures include entering into Lithium offtake deals with lithium-rich countries besides enhancing its production and mining of rare earth metals. If one were to look at global lithium reserves, as per the 50 Deloitte analysis, USGS Mineral Commodity Summaries 2019, Australia accounts for ~six mn metric tonnes out of which, lithium amounts to 2.7 mn metric tonne alone. Chile leads the pack on lithium reserves at eight mn metric tonnes followed by Argentina and China. Now India has joined the race with the new found treasure chest. ACI

@Prateek2101

Prateek Pardeshi

Robert Bosch Automotive Steering GmbH (RBAS) and the Munot Family are the major shareholders of ZF Steering Gear (India) Ltd. (erstwhile ZF Lenkystene GmbH). After RBAS purchased a 100 per cent stake in ZF Lenksysteme GmbH, to turn a majority shareholder, it was renamed ZF Steering India. Known to manufacture, assemble, and sell steering gears, with a

Trending

ZF Steering Looks Up

focus on both mechanical and hydraulic power steering gears. The production facilities are spread across Pithampur, Madhya Pradesh, and Shirur, Maharashtra. The Munot family owned 41.62 per cent of the business as of December 31, 2022, and RBAS held 25.79 per cent of the company. The recent sale of equity in the Company by RBAS to the Munot family sent the share market in a frenzy.

Reflecting on the share valuation of the company, ZF Steering India is witnessing an incremental growth. In FY21-22, the company reported sales were Rs.3,128 million compared to Rs.88.5 million a year ago (FY20-21). PAT stood at Rs.182.7 million compared to Rs. 88.5 million in the same period. With Dinesh Munot and Utkarsh Munot acquiring a 25.79 per cent stake in ZF from Robert Bosch Automotive Steering GmbH for approximately Rs. 940 million, there is bound to be interest on the forward outlook. In an organisational change, Sandeep Nelamangala has tendered his resignation from the office of Non-Executive, Non-Independent Director of the Company, with effect April 05, 2023.

Domestic aspirations

Boosting its domestic aspirations, the stable rating is a testimony to the tier 1 supplier’s healthy credit profile, supported by a net debt-free status, low use of working capital lines, and high liquidity in the form of free cash and liquid investments. The scores also continue to take into account ZF’s enviable leadership in the domestic power steering market and long-standing associations with significant Original Equipment Manufacturers (OEMs) in the domestic tractor and commercial vehicle markets. Credit rating agencies like ICRA are keeping a close eye on the recent developments. Based on a review of these, the Rating Committee of ICRA, after due consideration has reaffirmed the long-term rating at ICRA A+. It has also reaffirmed the short-term rating at A+. The outlook on the long-term rating is ‘stable’. Strong standing in the local M&HCV and tractor steering systems market; established connections with top OEMs are the USPs expected to hold it in good stead going forward. ACI

With the recent changes coming to fore, ZF Steering Gear (India) is looking up. Prateek Pardeshi looks at the key drivers.

Steering calibration at the ZF facility in process.

Exhibition And Conference

9th ACMA MSME Summit

The 9th MSME Summit was held in New Delhi. The key takeaways from the summit included a positive outlook and priority focus areas for automotive MSMEs, reports Sumesh Soman.

The Automotive Component Manufacturers Association of India (ACMA) organised the 9th edition of the MSME Summit, aimed to recognise the challenges and possibilities for

MSMEs, in New Delhi. The summit was attended by Sunjay J Kapur, President, ACMA and Chairman Sona Comstar, Sreekant Somany, Chairman-MSME Committee, CII and CMD, Somany Ceramics

@SumeshSoman_ Sumesh Soman

Exhibition And Conference

Ltd., Shradha Suri Marwah, Vice President, ACMA and MD, Subros and Vikrampati Singhania, Chairman NR, ACMA. The focus of the summit was centred around the theme “Bracing-up for Transformation – Opportunities and Challenges for SMEs,” with an emphasis on the significant role that MSMEs will continue to play in the Indian economy, particularly in the automotive component manufacturing industry.

During the summit, Sunjay J Kapur, President of ACMA

and Chairman of Sona Comstar, highlighted the “unprecedented transformation witnessed in India, where MSMEs are at the forefront of the change.” He stressed the need for MSMEs to invest in research and development and build capacity to stay competitive in the auto component manufacturing industry. He applauded the government of India’s initiatives such as ‘Make in India’, ‘Start-up India’, and ‘Atmanirbhar Bharat’, known to provide essential support to the sector.

Kapur also drew attention

to the LEAN scheme. “The MSME Competitive (LEAN) scheme under the MSME Champion scheme, is expected to enhance the productivity and competitiveness of SMEs,” he shared. As a representative of the auto component industry, Kapur expressed confidence that the initiatives would help the industry achieve world-class quality standards and pave the way for more significant success.

During the summit, four-panel discussions were held on various themes, including ‘Bracing-up for

Sunjay Kapur, President, ACMA gives an overview of the MSME landscape.

Exhibition And Conference

OEMs alike will have to cater to the changing dynamics of the market. “To start with, the customer is now more demanding than ever. There was a time when frugality and durability were the only parameters that mattered,” quipped Anand. The customer now wants a comfortable ride experience while being connected to the world with a bottle of water on the move and these demands are being catered to as well by OEMs, Anand averred. The customer is highly aware as well of the product that is desired with a higher purchase power and with customers spoilt for choices, there is increased bargaining power as well.

areas to stay competitive and relevant amidst the transformation agenda. According to Anand, OEMs must be flexible in execution and proactively adapt the new technological advancements. Secondly, the companies must be more tech and data-focused, OEMs should grow or acquire tech IPs across the operational product portfolio. Employee empowerment and rapid innovation will help OEMs stay ahead of the curve in this new era of change and transformation.

Transformation’, ‘Opportunities and Challenges for SMEs’, ‘Reinforcing Financial Confidence’, ‘Building Credibility, and Managing Customer Expectations - Bridging the Gap’. These sessions highlighted some significant challenges facing SMEs and proposed practical solutions to overcome them.

ACMA represents over 800 auto component manufacturers, with 65 per cent of them falling in the small and medium categories. The association has launched several new cluster programs on skilling and mentorship, including a specialised program for SMEs that have received substantial subsidisation from the United Nations Industrial Development Organization (UNIDO) and the Ministry of Heavy Industries (MHI).

A presentation led by Anand Jayaraman, Director at PwC India on bracing up for transformation explicitly disintegrated how the market is changing and auto component manufacturers and

Anand highlighted how the disruptive impact of technology in vehicles, industry supply chains, and business models is affecting the market at an unprecedented level, for example, shared mobility. And couple that with the dynamic regulatory environment, wherein strict emission norms are pressed on the manufacturers. In parallel, the face of mobility infrastructure is changing with charging hubs being integrated into malls, highways and new roads being constructed. The sector of mobility at present is being stretched from all sides and EVs are only the surface of this wave of transformation that lies ahead, exclaimed Anand.

OEMs globally are embarking on electrification programs to target net zero-emission vehicles. The use of clean energy sources is now the norm in the fraternity said Anand. And this is ought to bring about quite a disruption in the auto component manufacturing space. Anand mentioned six significant changes happening in the auto industry. Namely electrification, connectivity, electronics, material engineering, manufacturing excellence and data and analytics. He also highlighted four key focus

The panel also discussed a few pillars that will help OEMs navigate through disruptions. First and foremost efforts must be applied to IT and data-harnessing capabilities. This ensures that companies are on hardcore and real-time telematics, thus helping in the creation of effective products. An agile organisation will always help in coping with the uncertain crests and troughs of the market, OEMs must be willing to form partnerships and alliances. Anand stated that taking part in electrification opportunities will be a boon for all OEMs, a fair example is how the wave has start-up companies like Ola, Ather and Revolt to name a few lead. The established market leaders and big players also joining the fray. Anand emphasised on how AI and simulations will take over production lines and assembly lines. To not only ease and speed up the overall shopfloor TAT but to give birth to new and improved solutions bypassing unnecessary and cumbersome functions in the manufacturing processes. This will take over equally on the ancillary and OEM fronts. “It is now or never, the advent of electrification is just scraping the surface of a major and significant transformation across the board, couple this with AI and simulations, and we are looking at eradicating so many unnecessary steps and processes in the manufacturing timeline,” he signed-off. ACI

Anand Jayaraman, Director at PwC India.

New Assessment and Testing Methodology for Vehicle Type Approval - Part

The following is the first of a three-part series produced by Carlos Lujan Tutusaus, Senior Manager of Homologation, Commercial Vehicles, Automated Driving and Vehicle Dynamics in Applus IDIADA and Oriol Flix Viñas, Homologation Engineer, Commercial Vehicles, Automated Driving and Vehicle Dynamics in Applus IDIADA.

1

I

n the context of a deep transformation in automotive technology, especially with the wide introduction of ADAS functions and the first commercially available vehicles with automated functions, the classic type-approval procedures have been challenged and new

methodologies are required. This article describes the actions being carried out at different levels to tackle such challenges, as well as the main future trends concerning the new assessment and testing methodologies for the type approval of vehicles and their systems.

Carlos Lujan Tutusaus

Oriol Flix Viñas

Introduction

Technological innovations in the field of Connected and Automated Driving have a strong impact on different areas in the automotive industry. Among those areas, the effect on vehicle homologation procedures is game-changing, in a way that requires a brand-new approach. Traditionally, the homologation process based on the United Nations Economic Commission for Europe (UNECE) Regulatory framework has been a single step at the end of the development phase, where regulations normally defined a series of repeatable scenarios to be evaluated, where the effect of the driver is typically suppressed using the measurement of the inputs on the vehicle commands or using the use of driving robots.

In such context, the evaluation process could be scenario oriented: A limited number of repeatable scenarios were reproduced under controlled conditions, and the performance of the vehicle/system alone was evaluated, in equal conditions. This approach was initially challenged by the introduction of assisted systems, such as the Advance Emergency Brake (AEB). Those systems are commanded by Electronic Control Systems which, in some circumstances, may control certain vehicle functions, such as braking or steering. The introduction of those functions required a different approach to the vehicle type approval, to evaluate possible failures associated with the Electronic Control Systems.

In such a context, concepts such as Functional Safety (FuSa) or Safety of The Intended Functionality (SOTIF) were introduced as part of the type approval process. This new approach turned the technical evaluation of compliance from a testing activity in selected scenarios into a combination of testing and assessment of the manufacturer’s safety concept. The

vehicle is still under the control of the human driver at all times, but the reaction of the vehicle may depend on the interventions of complex electronic systems. It is then necessary to guarantee that manufacturers have designed and built the vehicle to take safe decisions both in normal operation and failure conditions. This methodology was already introduced in Regulations such as UN Regulation N. 13 and UN Regulation N. 13H, where systems like EBS or ESP may activate the braking system without intentional action from the human driver.

The challenge of automated vehicles type-approval

The introduction of the first SAE L3 functions into the market adds a new layer of complexity to the type approval methodology. Such technologies replace the human driver during certain dynamic driving tasks, within an unlimited number of scenarios. This circumstance does not allow the classic strategy of removing the human effect from the

Traditional approach to type approval

Globescan

test scenarios and requires a second loop in the modification of the type approval processes, to move from an evaluation of the performance to an evaluation of the behaviour of the vehicle.

In this case, there are two main aspects that the traditional approach could not solve efficiently. The first aspect pertains to the driving strategy: In vehicles operating in automated mode, the dynamic driving tasks are the responsibility of the vehicle itself, without any human intervention. That means that the vehicle is not only responsible for the performance but also for the decisions on how to react to the inputs, assuming the role of the driver. In such circumstances, a classic type-0 braking test is not representative to evaluate the safety of a vehicle, because a vehicle with a lower

mechanical braking performance may follow a more conservative driving strategy, so that will avoid the need for emergency braking in most possible scenarios, while a vehicle with a more performant braking system, but with a much more aggressive driving strategy may not be as safe. The number of scenarios: In vehicles corresponding to SAE Level 2 or lower, a reduced number of scenarios is tested to evaluate the safety of its systems. As the human driver influence in the safe operation of the vehicle has a majority weight on the overall safety, over the system performance itself, it is possible to evaluate the safety of the system by excluding the human effect, using a limited number of test cases under repeatable and controlled conditions. However, if the driver effect cannot be excluded, as in the case of

automated driving vehicles, it cannot be guaranteed that vehicles which are similar from the mechanical point of view will have similar performance under different scenarios, as the driving strategy may be variable depending on the scenario, affecting the behaviour of the vehicle and, as a consequence, the performance. ACI

With more than 25 years of experience and 2,450 engineers specializing in vehicle development, Applus IDIADA is a leading engineering company providing design, testing, engineering, and homologation services to the automotive industry worldwide. Applus IDIADA is in California and Michigan, with further presence in 25 other countries, primarily in Europe and Asia. The article is part of a content-syndication arrangement with the Brake Report.

FANS

FANS

FANS

Ravinder Singh Segment Head, Continental Division Contitech

Saurabhraj Srivastava RSM - West (WR & SBQ) Tata Steel LP (M&S)

Amitoj Singh Punjab

Aashwiin Heegde Bengaluru

Saurabh Poddar Uttar Pradesh

Preyash Gupta New Delhi

Danush M S Bengaluru

Sujeet Kumar Rajasthan