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www.autocomponentsindia.com Vol 7 Issue 10
Upfront
December 2020
COMPONENTS
INDIA
VOICE OF THE AUTOMOTIVE SUPPLIERS
Eyeing Strong Profits and Long-Term Growth Nitin Chalke, President – Hydraulics and Vehicle, Asia Pacific, Eaton
In It For The Long-Haul
Intelligent Battery Analytics
Busting Startup Myths Disruptors - Startups and Technical JVs
l Special Reads Getting Back To Top Gear With McKinsey l #Trending India Sustainability Leadership Summit 2020 l Mobilised Toughest And Most Capable Ever Defender @autocomponentsindiaofficial
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Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India Jammu Udhampur Highway, Jammu, India
Content December 2020
COMPONENTS
INDIA
VOICE OF THE AUTOMOTIVE SUPPLIERS
Cover Story
18 In It For The Long-Haul
Log 9 Materials is banking on its innovative, zero-emission and low-cost solution to provide a compelling alternative for longhaul transportation.
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AUTO COMPONENTS INDIA n DECEMBER 2020
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Hyundai Academy for technical skills The rise in government-recognised startups? Nagesh Basavanhalli resumes executive duties Underprivileged do well with Tata Motors’ support NeoBenk fast-funding for startups JK Tyre partners ‘Choupal Saagars’ Visteon Chennai plant rewarded for sustainable practices Shell India to engage startups India-SCO startup forum Vikas Bajaj is the new AIFI President Cummins complies to BSIV CEV standards 78 per cent of Indian Startups cut their workforce? Telangana EV and Energy Storage Policy 2020-30
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Nitin Chalke, President – Hydraulics and Vehicle, Asia Pacific, Eaton
Intelligent Battery Analytics
ION Energy is optimising EV powertrains and energy storage systems through advanced battery management systems.
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Toughest And Most Capable Ever Defender
24 Special Reads n
The Commercial Metal Of Choice
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Getting Back To Top Gear: The road ahead for Indian auto component manufacturers
32 Trending
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India Sustainability Leadership Summit 2020
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A SIAM Environment Series-Part 2
38 International
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DEP MeshWorks Tyre Modelling
40 #Trendsmap
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AUTO COMPONENTS INDIA
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From Micro, Small, Medium to Large enterprises, the sustainable startups have turned problems into opportunities.
recent visit to India’s Silicon Valley Bengaluru reinstated my faith in the entrepreneurial streak running deep in the country despite the Covid-19 created havoc. From Micro, Small, Medium to Large enterprises, the sustainable startups have turned problems into opportunities. Churning out disruptive tech and services, the approach to entrepreneurship continues to be led by problem-solving skills and quick go-to-market strategies. Take our current issue on disruptive startups and technical joint ventures, for instance. We have touched base with dynamic founders who ceased to give in to the market pressures induced by the pandemic. They kept pursuing the far horizon with eyes on enhanced efficiency and productivity in the near term. Be it Bengaluru based Log 9 Materials, awarded as the ‘Most Innovative Technology Company of 2018’ by the Department of Science and Technology, Government of India or Mumbai-based ION Energy Inc. that boasts of on-road deployment of over 25,000 BMS units. Team ACI’s chat with both made it clear that development was affected in the initial stages of the pandemic. The two successfully repurposed their resources and manpower. That’s agility, isn’t it? Both took a holistic approach in line with their commercial endeavours instead. The two also consider themselves fortunate to be backed by their investors in these testing times. It is also good to learn from them that early-stage seed funding which witnessed a dip has seen an uptick post-July-August 2020. Ashish Bhatia Executive Editor | a.bhatia@nextgenpublishing.net
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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 DECEMBER 2020
General Manager – South Girish Shet
Just in Time
The Entrepreneurial Streak And A Pandemic
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Newscast
Hyundai Academy for technical skills Hyundai Motor India Ltd., through its CSR arm - Hyundai Motor India Foundation (HMIF) announced plans to empower the youth. It will offer skill development through the upcoming ‘Hyundai Academy for Technical Skills’ in Irungattukottai, Chennai. Spread across a 6.45-acre land parcel, the new centre with an Rs.150 crore investment is expected to serve as an incubation centre aimed at upskilling. SS Kim, Managing Director and Chief Executive
Officer, Hyundai Motor India Ltd. said, “Guided by our Global Vision ‘Progress for Humanity’, our efforts are aimed at creating an ideal world for the communities around us. The State of Tamil Nadu has been leading industrial growth in the country and hence has always encouraged such initiatives.” “This groundbreaking ceremony holds a very special place for all of us at Hyundai,” he expressed. The new centre will focus on human-centric innovations
AUTO COMPONENTS INDIA n DECEMBER 2020
The rise in governmentrecognised startups?
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According to the Startup India portal, government-recognised startups have grown by 57 per cent compared to last year. The 24,927 companies recognised as startups in November 2019 have grown to 39,114 as of November 2020. Last year, the Department for Promotion of Industry and Internal Trade (DPIIT) in its vision document hinted at the development of around 50,000 new startups and creation of 20 lakh direct and indirect jobs by 2024. It also mentioned the provision for 500 new incubators and accelerators, 100 innovation zones in urban local bodies, and seven research parks to help the startups grow. In addition, the India Startup Fund of Rs.1,000 crore for technology startups and another Rs.1,000 crore in seed funding to startups was suggested. The government’s ‘Startup India’ scheme launched in 2016 is aimed at promoting entrepreneurship in the country. www.autocomponentsindia.com
and mobility solutions besides offering training programs to create think tanks. The centre aimed at imparting sustained professional
growth is expected to groom participants in an all-round manner leading to economic development for the beneficiaries.
Nagesh Basavanhalli resumes executive duties
After relinquishing executive responsibilities in August 2020, Nagesh Basavanhalli resumes charge as the first Group CEO and Managing Director with immediate effect. With a focus on the future growth of the overall business at Greaves Cotton Ltd. and Greaves Mobility, including strategic initiatives like Greaves Finance, according to Karan Thapar, Chairman, Greaves Cotton Ltd., he will play a pivotal role in the transition towards fuel agnostic technologies and e-mobility. Speaking on the development, Nagesh Basavanhalli, Group CEO and MD said, “We sense an opportunity to play a significant role in the rebuilding of India’s economy with its strength in local manufacturing. We also want to be a significant contributor to the vision of ‘Make in India’, and the country’s transition to a green economy with our clean technology portfolio.”
preparation from skilled mentors, the programme is enabling students to better understand the concepts
NeoBenk fastfunding for startups NeoBenk Ventures has set aside a USD 10 million (approximately Rs.7.5 crore) fund for Indian startups in digital payments from its global investment program of USD 50 million (approximately Rs.37.5 crore). By offering fast-funding to startups and businesses in a volatile market, the strategic investment arm of the multinational financial institution, NeoBenk, known to invest in currency exchanges, money service businesses, and payment and remittance solutions among other new interest areas is aiming to develop a successful startup ecosystem. It will also facilitate local partnerships through the mass adoption of digital payments. Startups or businesses can apply for fundraising through NeoBenk’s Global Partners Program. NeoBenk Ventures will engage with them virtually before deciding to invest within a 20 day period.
and instil smarter problemsolving in a confidencebuilding exercise. As per the records, 70 per cent of the
alumni of this programme have made it to the country’s prestigious institutes of which 23 per cent belong to SC and ST category. Since 2013-14, over 616 students across 62 JNV schools in Pondicherry, Kolhapur, Mangalore and Palghar have benefitted from this programme. In 2020, 43 students aced the IIT JEE Mains and 27 cleared IIT JEE Advanced. JNV Puducherry centre has become the leading centre this year with over 89 per cent and 100 per cent success for IIT JEE Advanced and JEE Mains respectively.
JK Tyre partners ‘Choupal Saagars’ JK Tyre & Industries Ltd., has collaborated with ITC’s e-Choupal under the ‘Choupal Saagars’ initiative. Aimed at leveraging its presence in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh, the tyre manufacturer wants to penetrate deeper in the tier markets and engage better with the rural communities. To engage across the three states, in a phased manner, with its integrated rural services hubs, JK Tyre is also looking to enhance brand recall. Target group discussions with the help of influencers and customer meets have been identified as key means to meet the objective. The company recently partnered Kia Motors India as a tyre partner for the Seltos. www.autocomponentsindia.com
AUTO COMPONENTS INDIA n DECEMBER 2020
Tata Motors in association with Avanti Fellow NGO is helping unprivileged students prepare for NEET, IIT JEE Mains and IIT JEE Advanced competitive exams. It is offering special coaching classes and grooming, for instance, to students of Jawahar Navodaya Vidyalaya Samiti (JNV). The Original Equipment Manufacturer is conducting sessions for class 11 and 12 students with a penchant for science and technology to achieve their ambitions. Claimed to offer unique peer-to-peer learning facilities along with focussed
Newscast
Underprivileged do well with Tata Motors’ support
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Newscast
Visteon Chennai plant rewarded for sustainable practices The Visteon Chennai manufacturing plant has been rewarded for its sustainable practices with a green manufacturing award. The company bagged a silver medal in India Green Manufacturing Challenge (IGMC) from the International Research Institute for Manufacturing (IRIM). Encouraging the adoption of green processes through training, evaluation and recognition, the program by IGMC helps generate an actionable roadmap for greener facilities and refined, viable processes of manufacturing. Visteon was commended for its approach ensuring an environmentally friendly facility and the growth of its sustainable
operations. For instance, the addition of renewable energy sources like solar panels to power a third of the site besides other initiatives
leading to a zero liquid discharge. Visteon scored high on emerging technology adoption, recent and bestin-class solutions, the level
of automation in operations besides for maintaining a clean, safe and prosperous working environment at the facility.
AUTO COMPONENTS INDIA n DECEMBER 2020
Shell India to India-SCO engage startups startup forum
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Shell India plans to engage 25-30 startups on an annual basis starting in 2022. Under its ‘E4’ programme, where the company focusses on the energy, mobility solutions, energy IoT applications, digital logistics and clean technology among others, the initiative is aimed at the incubation of startups through several modules of linking talent, technology, capital and know-how. Aiming to accelerate India’s transition to sustainable energy, the company will directly provide USD 20,000 to each of the startups selected under the program and also facilitate additional funding to them. Over the past three years, the company is claimed to have engaged with 30 startups and known to have supported them by way of investments and mentorship at the Shell India campus. www.autocomponentsindia.com
To help strengthen the startup ecosystem in India, Piyush Goyal, Union Minister for Commerce and Industry and Railways launched the India-Shanghai Cooperation Organisation (SCO) Startup Forum. The forum, he mentioned, will help nurture innovation and transition to a transparent, fair and rational new international political and economic order. Sharing best practices, knowledge and engaging investors from the SCO member nations, he opined, would help startups gain the required traction. The forum will also enable mobilising and monetising of capital, setting up incubators and aid in the provision of scale, exposure and market access. Jointly launched by industry body Confederation of Indian Industry (CII) and Department for Promotion of Industry and Internal Trade (DPIIT), the forum is expected to provide a good platform to startups seeking MNC cooperation and engagement with the member states.
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Newscast
Vikas Bajaj is the new AIFI President
AUTO COMPONENTS INDIA n DECEMBER 2020
Vikas Bajaj has been appointed as the new President - Association of Indian Forging Industry (AIFI). Appointed for the term 2020-2022, he replaces S. Muralishankar, who held the position for the period 2017 to 2020. In his new role, Bajaj will take over the responsibility to strengthen the member base, drive strategic alliances and represent AIFI at various government bodies and to other stakeholders. As the Vice President (VP) of the General Body of the Indian Forging Industry, he is known to have shouldered different responsibilities within the association. He is also the Managing Director and CEO of M/s Bajaj Motors Ltd., where he manages the operations of the company and is also associated with operations and activities of Microtek Forgings (A Unit of Bajaj Motors Ltd.) In other appointments, Yash Jinendra Munot takes over as youngest VP - AIFI. He is also the CEO at Varsha Forgings and the Managing Director at KCTR Varsha Automotive. Munot is known for spearheading and pioneering the launch of sealed ball joint technology in India.
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Cummins complies to BSIV CEV standards Cummins India has complied to the Bharat Stage IV (CEV) emission standards by clearing certification tests for its four-cylinder, 4.5-litre engine at International Centre for Automotive Technology (ICAT). The engine, for wheeled equipment like wheel loaders, backhoe loaders, compactor, harvester and paver among others has earned the compliance ahead of the April 01, 2021 deadline for new emission standard. It can further be scaled up to BSV emission norms and beyond. Averred Ashwath Ram, Managing Director, Cummins India mentioned, “These new engines systems will be powered by Cummins’ best-in-class, globally-proven technology and will ensure higher uptime, better TCO, easy installation and cleaner emissions thus delivering superior value to endusers.” Anjali Pandey, Vice President Engine Business and Components Business Cummins added that the BSIV compliant engine system will enable the company to better penetrate the construction segment.
78 per cent of Indian Startups cut their workforce? As per a survey conducted by LocalCircles with a sample size of 7000 startups, MSMEs and entrepreneurs across 104 major business districts, around 78 per cent of startups and MSME have had to trim their workforce owing to the pandemic induced crisis impacting revenues and operations. 25 per cent businesses are known to www.autocomponentsindia.com
have shut down business letting go of the entire workforce with 15 per cent reducing the workforce by up to 50 per cent. About 19 per cent of startups reduced the workforce by 25-50 per cent with six per cent claiming to have increased workforce and the remaining 16 per cent maintaining pre-Covid-19 levels. Amounting to 78 per cent
startups reducing their workforce in the last eight months, 22 per cent startups and MSMEs in effect retained and or increased their workforce. Notably, 31 per cent of these are known to have reduced women workforce negatively contributing to the low Labour Force Participation Rate (LFPR) among women in the labour force.
The state of Telangana is aiming to spearhead the (Electric Vehicle) EV revolution in the country with the announcement of an EV and energy storage policy 2020-30. Turning into a power surplus state in less than five years since its formation in 2014 as a power deficit state, the state leads in renewable energy production today. Setting aggressive targets in clean energy production, complementing the EV charging infrastructure, Telangana with the new policy is striving to be a global manufacturing hub for EVs as it builds on the Fame II scheme of the Government of India. It is also striving to make the state a hub for energy storage systems. To do so, the state government will strive to make the state an attractive investment destination (with investments worth USD 4 billion), promote R&D and manufacturing, ensure faster adoption and achieve substantial reductions in the cost of transportation for personal and commercial purposes by building world-class infrastructure. It will strive to make the state a preferred destination for Electric Vehicle,
Newscast
Telangana EV and Energy Storage Policy 2020-30
ESS and component manufacturing. It will also promote recycling and cascading of batteries. The government signed MoUs with three-wheeler manufacturer ETO Motors, and electric bus manufacturers Olectra and Mytrah Energy to support their manufacturing plans.
Implementation Strategy 1. Incentives shall be made available for manufacturing of EV, Energy Storage Systems (ESS) and related components in Telangana including capital subsidies, SGST reimbursements, power tariff subsidies, etc.
of EVs for commercial purposes.
2. Incentives shall be made available for two and threewheelers, four-wheelers, light commercial vehicles, shared transport and public transport. The incentives shall include a waiver on road tax and registration charges.
8. Preferential parking slots with the required charging infrastructure shall be made available for EVs.
4. Ride-hailing services shall be encouraged to operate electric two, three and four-wheelers through incentivisation. 5. Battery operated feeder shuttle services at all Hyderabad Metro Stations for last-mile connectivity shall be made available. 6. Existing state self-employment schemes shall be extended to provide financial assistance for the purchase
9. Preferential procurement to ‘Make in Telangana’ EVs and ESS for government orders shall be provided. 10. Facilitate in dovetailing with Govt. of India (GoI) schemes and encourage stakeholders to avail benefits available under GoI schemes. 11. Ensure demand-side and supply-side incentives. 12. Develop EV and ESS clusters. 13. Provide preferential market access. 14. Constitute a steering committee. www.autocomponentsindia.com
AUTO COMPONENTS INDIA n DECEMBER 2020
3. Incentives shall be provided for charging infrastructure.
7. Adoption of EVs at an institutional level shall be promoted starting with Government entities.
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Upfront AUTO COMPONENTS INDIA n DECEMBER 2020
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Eyeing Strong Profits and Long-Term Growth In an upfront interaction, Nitin Chalke, President – Hydraulics and Vehicle, Asia Pacific, Eaton spoke of the transmission manufacturer emerging stronger from Covid-19 hit quarters. He drew attention to the company staying focused on building a strong profit plan for 2021 to stay on course with the long term strategic goals. Interview by: Ashish Bhatia www.autocomponentsindia.com
Upfront Q. Which key skillsets and focus areas are targeted and what is the demography of the target group like? A. With these training sessions, the aim is to help participants gain extensive product knowledge, including on the maintenance and repair of essential powertrain components and other speciality products. As part of a special practice session on disassembly and reassembly of Eaton’s six-speed manual transmission, a highly interactive one, Eaton experts answer the participants’ queries along with imparting a focussed training with demonstrations and practical learning experiences. Through this program, Eaton aims to provide
“The dependencies on the supply chain, processes and associated skill-set, ability to get things done digitally, will be major focus areas. ” end-users with advanced skills and matchless expertise on knowledge expansion in service and repair. Demographically speaking, the target population includes independent mechanics, members of mechanics’ associations and OEM mechanics. So far, we have trained more than 250 independent mechanics across Tamil Nadu (Namakkal, Sankagiri, Salem and Thiruchengode) and across East India (Jamshedpur, Dhanbad, Bihar and Odisha). The duration of each session is about 1.5 hours and extends depending on the interaction level of participants. The total training man-hours amount to approximately 400 and also include a recital in the local language for ease of understanding. Q. In hindsight have you achieved what you set out to and how do you see the initiative evolving in the Indian context? A. The training was adapted quickly to unforeseen situations without the focus shifting from the requirements of customers and end-users. The response for our in-person training has been tremendous, and we were hopeful that the shift to virtual platforms would be a success too, as long as we are able to deliver value. The mechanics have been sharing good feedback too and have found it useful and informative to the extent of broadening their skillset. Eaton has a strong focus on learning and the success of this program symbolises us realising the organisational focus. We see the virtual format gaining even greater momentum as we go along given that we are still in the midst of the pandemic. With the program already reaching out to more than 250 participants pan India within a span of six months, we are confident of successfully reaching
out to more participants. With the Indian commercial vehicle landscape undergoing a change with major OEMs adopting a modular business program, the virtual training workshop is designed to equip the mechanics on surviving a changing market and effectively adapting to it. It is a direct outcome of the time we spent and the efforts that went into understanding the mindset and requirements of the target group in the market. Q. How was the company poised ahead of the pandemic induced disruptions over Q3-Q4FY2020? A. While we were expecting a surge in demand in Q3FY2020 and Q4FY2020, in expectation of a pre-buying activity ahead of the BSVI rollout, the expected surge in demand did not come good. Some of our export businesses had also started feeling the pressure in Q4FY2020 due to the lockdown. Even in the absence of pandemic and no significant pre-buy, we were anticipating an uneventful but low-performance Q1FY2021. However, the pandemic negatively impacted even those assumptions. Q. How did exports fare and what’s the overall impact vis-a-vis domestic demand? A. The exports (specifically to the developed western markets), were impacted due to lockdowns, however, the bounce-back has been sharp. The volumes also went up, in anticipation of building the pipeline of stocks. During the lockdowns, with freight movements impacted, the inventory holdings witnessed a dip. In the domestic market, specifically, the commercial vehicle industry has been lagging. While we are seeing some improvements, the drag is still significant considering the www.autocomponentsindia.com
AUTO COMPONENTS INDIA n DECEMBER 2020
Q. How was the Virtual Mechanics’ Training initiative conceived amidst a disruptive pandemic and with strained resources? A. Mechanics and technicians of commercial vehicles constitute a significant share of the end-user community for Eaton. They are essential pillars of the automotive industry, as they keep the customer’s vehicle running. This makes it vital for them to have indepth knowledge to inturn increase the serviceability aspect of the vehicle. Eaton has been conducting hands-on practical training workshops with mechanics from Tamil Nadu since 2019. This was a part of our strategic end-user and influencer engagement program. We had trained almost 75 independent mechanics across four locations in Tamil Nadu and had plans in place to continue with the handson training for more locations across India when the pandemic struck. To ensure we went through with our plans, we came up with the idea of focussed-group training through virtual platforms with a focus on skill development and to reach out to our target group. We switched to virtual training in April 2020, where we used video conference apps to broadcast our comprehensive product animation and training videos using minimal resources. So far 250+ mechanics have been trained under the initiative. It has grown to a pan India implementation now.
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Upfront industry witnessed degrowth prior to the pandemic. Our supplies to agricultural equipment markets have been good courtesy of a strong rural demand.
AUTO COMPONENTS INDIA n DECEMBER 2020
Q. What is the recovery outlook across segments spanning passenger vehicles, commercial vehicles and the offhighway segment? A. Passenger vehicles are already showing strong growth. The growth in rural and semi-urban markets is driving good demand. In commercial vehicles we do see growth in the segment catering to the last mile reach. The heavy commercial vehicle segment is expected to lag due to overcapacity. Construction equipment vehicles may show some growth as the activities in this segment start picking up, driven by the extent of government spending and the return of labour to these sites.
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The Eaton Virtual Mechanics’ Training workshop succeeds at realising the organisational focus on imparting learning.
www.autocomponentsindia.com
Q. What is the canvas like for the Truck division in India in terms of the global exposure on the production, after-sales service and product design front? A. Eaton’s Truck division is engaging with all the commercial vehicle players in India. With more than 150,000 transmissions on the field, we do have a strong understanding of customer behaviours and vehicle duty cycles. It has enabled us to further customise our products and to bring more value to our customers and live up to the “We make what matters work” motto. With the changing fleet utilisation and duty cycles (due to axle norm changes, BSVI implementation, quick turnaround times etc.), we have been working closely with our customers to efficiently cater to the ever-evolving niche applications with our reliable and robust range of transmissions. We have also brought in our clutch designs to the Indian market and are getting very favourable feedback on the value to add to the customer. We are also currently making the MD electric vehicle transmissions to cater to the global requirements. As electrification gains traction in global markets, we do see it as a growth vertical for us. While Covid-19 kept all of us locked in, we have utilised this time well to reach out to our end users on virtual platforms to listen in to their concerns and to find novel ways of addressing them, in turn, adding to their efficiency and profitability. We also plan to bring in the Eaton ReMan program in a big way to India. This will help the fleet owners extend the life of their vehicles at lower costs. Q. How have you added to the shop floor, supply chain and vendor level efficiencies in order to be future-ready? A. Currently, we are investigating on a topic related to predictive maintenance solution for pumps and motors. These are in very early stages of Technology Readiness Level (TRL). Once successful, we can horizontally deploy it at multiple facilities since pumps and motors are omnipresent in factories. Eaton holds critical Intellectual
Property (IP) on these algorithms, the deployment of which will enhance our product capability and robustness while also helping to enhance the overall productivity. The architecture currently under development can help extend the predictive maintenance solutions for other assets in the future as well. On the supply chain side, we are looking at making our data sources transparent and linked, while also improving the data quality. Efforts are ongoing towards accurately classifying our spend data and mapping it with our product life-cycle management data. The game-plan is to strengthen our data sources while creating a single source of truth, developing a knowledge layer by linking the various data sources and finally developing an artificial intelligence layer on top of the knowledge layer. Q. What is the near-medium and longterm outlook? A. We are still not clear about the actual impact and possible rebound of markets in India. We are witnessing severe economic recession, which has impacted Eaton’s revenues and margins as well. Eaton, however, continues to deliver strong decremental margins, along with smooth cash flow. There have been many learnings along the way – working from home, virtual FATs, customer connect, etc. The team has run 100+ webinars, connected to over 2000 customers, and put in over 2500 hours of product training. Till the demand returns for good, all of us have the responsibility to manage costs and revisit our strategies. It looks like the worst is behind us and things can only get better. The short-term goal is to build on resilience displayed in 2020 and consolidate to recover as much as possible in the coming year. We have already embarked on a project to capture learnings of Covid-19 impact to the business and its processes, only to revisit and arrive at a new normal. The dependencies on the supply chain, processes and associated skill-set, ability to get things done digitally, will be major focus areas. We are focusing on building a solid profit plan for 2021, to align with the long-term strategic action plan. ACI
Mobilised
Toughest And Most Capable Ever Defender The latest iteration of the Land Rover Defender is being touted as toughest and most capable ever and for good reason. ough and capable are synonymous with the Land Rover Defender legacy. It’s the claim of the latest iteration being the toughest and most capable ever that has the loyalists excited all over again. In India, the excitement levels seem to have soared to newer highs too. After all, with the launch, Land Rover, completes
the brand portfolio’s trinity mix. Consisting of the ‘Discovery’ and ‘Range Rover’ as the two pillars, the Defender drives in as the third. Speaking on
AUTO COMPONENTS INDIA n DECEMBER 2020
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Story by: Ashish Bhatia
www.autocomponentsindia.com
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Mobilised
Watch Out For 1. Monocoque Architecture. 2. Electronic Air Suspension and Electronic Active Differential with the optional Terrain Response 2. 3. Wading depth of 900 mm. 4. Geometry for a strong all-terrain capability. The approach angle is 38° and the break-over angle is up to 31° with a departure angle of 40°. 5. Pivi Pro, a state-of-the-art and intuitive infotainment system. There is wireless charging onboard too. 6. ClearSight Interior Video Rear View Mirror for a clear rear view regardless of any obstacle blocking the view from within the car. Rohit Suri, President and Managing Director, Jaguar Land Rover India
the significance of the launch, expressed Rohit Suri, President and Managing Director, Jaguar Land Rover India, “This, in many ways, completes the Land Rover brand story and we are very excited about expanding the reach and appeal of Land Rover amongst our customer base.” Sharing an important piece of trivia, Suri drew attention to the name Defender being used in 1990 for the first time ever. Since then, stated Suri, the Defender has proved to be the most successful and iconic model for the manufacturer.
AUTO COMPONENTS INDIA n DECEMBER 2020
The new Defender in India
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Announcing the launch of the new three-door Defender 90 and the five-door Defender 110 in India, the Defender 110 is the first to go on sale in the country with the former expected to follow suit. Priced northwards of Rs.79.94 lakh, the two—Defender 110 SE and the Defender First Edition we took a closer look at, in a suburban Mumbai dealership, drove in from the Jawaharlal Nehru Port Trust (JNPT) ahead of the official launch. According to Suri, it is the most configurable vehicle. “With over 170 individual accessories there is the Adventure Pack, Explorer Pack, Country Pack and Urban Pack as the four distinct accessory www.autocomponentsindia.com
packs to choose from,” he expressed. Deployable roof ladder, expedition roof rack, sidemounted gear carrier, integrated air compressor and portable rinse system are some of the key utilitarian features that one can choose from.
First impressions
Making for an imposing stance, it’s a good looker, to begin with. Soaking the permutation and combinations of the accessory packs albeit can be overwhelming till you get to know the new Defender better. Pass this hurdle and you begin to appreciate the slew of
Feature
Defender SE 110
Maximum speed km/h
191
Acceleration (s) for 0-100 km/h
7.0
Engine
2.0 l (litre) Turbocharged four-cylinder petrol
Maximum power kW / r/min
300 / 220 / 4000
Maximum torque Nm / r/a
650 / 1500 - 2500
Transmission
Automatic
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Mobilised
design and engineering components that lend to its true character. Retaining the solid shoulder line, minimal front and rear overhangs, alpine light windows, round headlights, side-hinged rear tailgate and externally mounted spare wheel from the original model, the five-door Defender SE 110 in fuji white exteriors is designed on the bespoke D7x platform. Its lightweight all-aluminium monocoque construction is claimed to add to the rigidity over the conventional body-on-frame design and fuses well with the 4x4 all-independent chassis. Notably, the system’s adaptive dampers are said to monitor body movements up to 500 times per second in a near real-time response to optimise control and comfort. We were mighty impressed by the configurable terrain response and the terrain response 2 ( was available on the Defender First Edition ) for enhanced all-terrain capability. With a maximum towing capacity of 3,720 kg, the new Defender has a roof load capacity of 168 kg. One can opt from the range of nine wheel designs, from 45.72 cm (18) pressed steel rims to 50.8 cm (20) alloys. Extending its utilitarian streak, the 5+2 seating impresses on the layout front. It can also be had with an optional front row centre seat (jump seat). The Defender boasts of a 231-litres load-carrying capacity with seats upright and up to 2380 litres of luggage space with row two folded up. The SE adds to the appeal of the interiors with grained leather and a robust woven textile. The new Pivi Pro infotainment system, next-generation Electronic Vehicle Architecture (EVA 2.0) supporting software over the air updates, ClearSight rear mirror and ground view as part of the 3D surround camera system, and the optional 700W Meridian Surround Sound System with 10 configurable options lend to its technical advancements leaving a lasting first impression. “We have launched the 2.0 litre petrol with 300 PS as of now. We will be introducing the three-litre diesel and petrol variants in the future. We are also exploring the launch of 2.0 litre petrol PHEV in India,” concluded Suri. ACI
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Key Technical Specifications
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Cover Story
In It For The Long-Haul Log 9 Materials is banking on its innovative, zero-emission and lowcost solution to provide a compelling alternative for long-haul transportation. Story by: Deven Lad
T
he IIT-Roorkee incubated, Bengaluru-based startup Log 9 Materials Scientific Pvt. Ltd., has set its sight on long-haul transportation. In a big range boost to electric light commercial vehicles, the company is claimed to have developed a path-breaking alternative to conventional lithium-ion battery packs. The low-cost, zeroemission, aluminium fuel-cell developed by the
company, according to Akshay Singhal, Founder at Log 9 Materials has the potential to address the range anxiety and performance issues associated with lithium-ion batteries. Explained Singhal, “Lithiumion is not meant for the long run especially when long-haul is the need. The biggest challenge, for instance, is the need to charge over several hours, for a Bengaluru-Mumbai trip. The trip will take three to four days owing to the need for multiple charges.” “The lithium-ion battery pack is also not suited to hotter terrains either. India has hot weather and those challenges persist. That apart there is a scarcity of raw materials like cobalt for feeding the battery,” he added. Of the opinion that aluminium fuel-cells are more apt for the long-haul, Singhal also cited the capability of withstanding hotter terrains more efficiently.
Aluminium fuel-cell proto AUTO COMPONENTS INDIA n DECEMBER 2020
Aimed at creating a clean, circular energy economy, the fuel-cell prototype is claimed to power a 1,000 km range with zero waste and zero emissions. The graphene air-cathode of the battery is known to selectively allow air to pass through to the electrolyte which in turn reacts with the aluminium placed inside a chamber to generate electricity. The by-product, aluminium hydroxide, deposited at the fuel-cell bottom in a powder form can be recycled at a smelter and reused in the same battery again. The fresh aluminium in a rectangular ‘cassette-like’ form, in middle and two graphene membranes on both sides,
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Cover Story
Upfront Akshay Singhal, Founder - Log 9 Materials Scientific Pvt. Ltd.
can be put into the fuel-cell in a quick process to add to the efficiency. Log 9, according to Singhal expects to benefit from the solution being independent of lithium and cobalt besides eliminating the need for costly infrastructure. Opined Singhal, the fact that it is a primary energy generation mechanism that does not act as an energy storage hub like the conventional batteries do is a big plus for the company. Add to it, claimed Singhal, that the cost doesn’t scale up in proportion to the increase in the energy capacity of the fuel-cell. Claimed to have been inspired by the 1990 NASA space exploration, the use of graphene by Log 9 is validated by the several studies deeming it a “material of the future”. Singhal is of the firm opinion that aluminium fuel-cell could significantly change the landscape of emobility once it matures to a large scale deployment in the future. “This technology can revolutionise the clean energy, electric mobility and transport sectors not only in India but across the globe,” he mentioned. Notably,
Q. Have you emerged stronger or felt the need to add to the efficiencies much ahead then you envisioned during the pre-covid (Q3 FY2020) period? A. I think the whole coronavirus experience brought in a commercial sense. The team began to take a holistic approach, from the development cycle to marketing and eventually the commercialisation. In a sense, we adapted to the new normal of conducting our business. Q. How did your investors support you in your endeavour? A. They have been supportive of all the steps we took. Fortunately, we count ourselves among the few companies who did not resort to layoffs or salary cuts. Q. Is it true that early-stage seed funding has dipped? How has funding on the whole impacted the financial health and valuation of your company?
A. Yes, it is true that there was a dip initially. Post-July-August 2020 we touched base with our investors and since then there has been a revival. Q. Elaborate on the application of graphene in automotive (especially at the component level for instance in the battery and aluminium fuel cell) and problem areas solved by you? A. It has a lot of applications in panels, lubricants and in batteries owing to characteristics like high conductivity or high surface area. Even the lithiumion batteries make use of graphene to increase their efficiency levels. It is used majorly in the aluminium fuel cell where the most crucial component is the air cathode wherein graphene helps enhance the overall efficiency. Q. How evolved are the graphene processing and patterning technologies today? A. Graphene is like a family of materials. There are a lot of variations when we talk about graphene in terms of structure and its chemical properties, the type of graphenes and the protocols. It depends on how you use a particular variant suited for the application since not all variants are suited to all applications. We need to find the right property for the right application. For instance, in aluminium fuel-cells, you require conductivity of graphene, surface and hydrophobicity (water-hating). www.autocomponentsindia.com
AUTO COMPONENTS INDIA n DECEMBER 2020
Image for representative purposes only.
Q. As a startup, you thrive on challenges. How did you brave the challenges thrown your way in the pandemic? A. Yes indeed, development was affected by the pandemic. The resources and manpower we had at our disposal had to be repurposed during the lockdown, contributing across the different portfolios. And once the lockdown was lifted we got the developments in the pipeline for the future on course.
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Cover Story
9 advocates the need for a customised approach over a ‘one-size fits all’ approach. “Every platform has different requirements and operational conditions so a one fit for all approach doesn’t work. The vehicle duty cycles suited to the long-haul are of more relevance to us,” reiterated Singhal. Sharing a case study of a light commercial vehicle powered by a lithium-ion battery pack with a 150-200 km range on a single charge, explained Singhal, the battery pack typically weighs 200 kg. If its range were to be extended to 1200-2000 km, the battery pack would proportionately be heavier at approximately one-tonne. “It is here that we step in to provide the desired range with a light-weight battery pack,” he said. The Log 9 solution can give the same range with a lighter 300 kg pack making for a compelling case, he claimed. Beyond automobiles, the company is also exploring the potential of serving for stationary energy resources. Vehicle homologation is also on the anvil. ACI
The ‘Ranger’ powered by the Log 9 metal-air battery similar to the fuel-cell.
AUTO COMPONENTS INDIA n DECEMBER 2020
Log 9 staff members (45 of them), claimed Singhal, actively use the fuel-cells to generate electricity. Log 9, cited Singhal, is pursuing Original Equipment Manufacturers for a trial. In fact, two automotive companies, hinted Singhal, are in talks with the startup to deploy the solution as an alternative to their EVs. “We aim to
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start with a light commercial vehicle platform like the Tata Ace before moving on to heavy commercial vehicles,” he disclosed.
Need-based use case
To cater to the different duty cycles in the Indian automotive market spanning light to heavy commercial vehicles, Log
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Intelligent Battery Analytics ION Energy is optimising EV powertrains and energy storage systems through advanced battery management systems. ON Energy Inc (ION) is on a mission! A mission to improve the life and performance of lithiumion batteries. Be it battery packs powering EV powertrains or Energy Storage Systems (ESS) that are in vogue with economies the world overcommitting to going fully electric by the turn of the decade. Co-founded by Akhil Aryan in 2016, Mumbai headquartered ION has conducted extensive research to conclude, by 2022 itself, global battery manufacturing capacity could hit 400 GWh. The company is betting big on the demand of Battery Management System (BMS) compatible with Lithium Cobalt Oxide (LiCoO2), Lithium Manganese Oxide (LiMn2O4), Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2), Lithium Iron Phosphate (LiFePO4), Lithium Nickel Cobalt Aluminum Oxide (LiNiCoAlO2) and Lithium Titanate (Li2TiO3) spanning low
voltage to high voltage applications. Lead-acid or NiMH battery packs, however, are the exceptions in terms of compatibility. ION counts Airbus, Ola, Tata Motors, Wamtechnik, Okinawa Scooters (i-Praise Electric Scooter), Tork Motorcycles, and Akhil Aryan, Electric Motion among Cofounder & CEO, ION Energy Inc. others in its clientele, a testimony of its market penetration. With over 25,000 BMS deployments (out of which 15,000+ electric two and three-wheelers in India and Europe), are electric across two-wheeler EVs (12V) to electric excavators (xV) to a micro-grid storage system (1080V), ION’s technology, claims Akhil Aryan, Co-founder & CEO, ION Energy Inc., is directly responsible for helping companies save up to 40 per cent on electronics. “The industry being in its nascent stage, tier 1 and 2 automotive OEMs look for high-quality BMSs at a very competitive cost, and ION has managed to strike an optimum balance between low cost and high quality,” he averred.
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Story by: Deepti Thore
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An efficient BMS unarguably guarantees a reliable and efficient battery pack. Explained Aryan, “ION’s approach, a software-first, full-stack one leverages advanced electronics, machine learning software and AI with its domain expertise in energy storage.” Notably, ION’s business model enables customers to buy or build custom BMS models. The BMS supports passive cell balancing claimed to ensure uniformity in the State of Charge (SOC) and voltages of the individual cells which maximise the capacity of the battery pack and improves life. Balancing the current range varies across the variants of its BMS units. ION offers three BMS variants: FS-CT (Compact) designed for low voltage battery systems from 7.5V to 42V, FS-LT (Light) designed for battery systems from 12V to 100V and FS-XT (Extended) designed for high voltage battery systems from 13V to 900V offered with a one-year warranty. The FS-CT is known to connect from six to 100 cells in series. The FS-LT connects from six to 25
AUTO COMPONENTS INDIA n DECEMBER 2020
Cover Story
Battery Management System
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Key Features of the BMS q State of Charge (SOC) Estimation q State of Health (SOH) Estimation q Paralleling q Cell Balancing q Communication Capabilities q Data Logging q Over the Air Updates
cells in series and using a modular architecture, it is said to manage applications from 12V to 110V and is compatible with multiple battery chemistries. For instance, in electric scooters and rickshaws, known to run on 48V to 60V lithium-ion battery packs. It is also tested for EMI/EMC tests as per AIS004 guidelines to meet a critical requirement for electric vehicles. It also offers resistance to electromagnetic disturbances and enables safe functioning in environments with heavy electrical noise. The FS-XT especially designed for automotive and high precision applications uses a distributed BMS. It consists of a System Management Unit (SMU) or a Master Unit known to connect up to 40 Battery Monitoring
FS-LT (Light)
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Unit (BMU) or Slave Units. Each Slave Unit can further monitor six to 18 cells in a series configuration. It can also connect up to 18 batteries in a parallel configuration. The FSXT boasts of high-voltage safety features such as IMD Integration, HV Interlock Lines, HV Measurement Channels and Weld Check. The BMS manages the flow of current through a Power Distribution Unit (PDU) and is known to support both solid-state and electromechanical based PDUs. Aryan drew attention to the Telematics Control Unit (TCU) for remotely accessing battery asset status, health, and data for more in-depth analysis. “The TCU seamlessly interfaces the BMS with Edison Analytics to provide real-time data about battery health, status, warranty, and in the case of utility-scale Battery Energy Storage Systems (BESS), in energy dispatch,” he mentioned. The BMS with CAN Bus 2.0 A and B interface for charger control and system interface supports all baud rates ranging from 125 kbps to 1 Mbps. It also supports both standard and extended CAN IDs. The BMS is compatible with CAN-based chargers including Zivan, TC charger, Bassi charger and Dilong charger. The BMS is backed by ION Lens, a smartphone application to interface remotely with ION BMS interface via Bluetooth. Through it, critical information of the battery like SOC, current, temperature and individual cell voltages can be accessed besides configuring and editing the configuration files. ION, additionally, offers services to help the companies design and engineer battery packs as per their specifications. It looks at various stages spanning cell selection, thermal management electro-mechanical assembly, structural design and the design analysis. Said Aryan, “The services extend to prototyping, quality analysis and testing as part of the end-to-end solutions involving a short-run production, supply chain
q Alert on any abnormal battery performance for timely action q Data science to suggest corrective measures to prevent battery degradation q Improve battery life q Roll out Over-The-Air (OTA) updates
and consistent assembly line set-up.” Successfully tested and validated hardware for IEC 61 000 (EMI / EMC) and IEC 61439-1:2011, the company, cited Aryan, is additionally helping its partners achieve certifications like IEC 62133, Basic UN38.3 and ARAI AIS 048 in Indian Automotive Industry.
Edison Analytics
Through a CAN view, desktop software suite ION facilitates two-way communication with the BMS. “This paves the way for system configuration, real-time data visualisation, authentication and data transfer to the company’s battery intelligence platform Edison Analytics,” explained Aryan. The BMS is also equipped with onboard memory storage known to log every data point of the battery pack collected. It is claimed to facilitate battery data archives of up to 20 years. To overcome the challenge of managing the data quantum, ION as per Aryan is relying on
compression algorithms tailored to battery data acquisition. Physical parameters, events, errors relating to the performance of the battery pack are part of the data pool generated, he informed. The cloud-connected battery intelligence platform Edison Analytics allows engineers to access the data pool and help customers gain invaluable insights into the life and overall performance metrics of the battery. Through it, customers can look forward to configuring the BMS to inturn match their application’s requirements with the battery’s capabilities. For instance, users can customise over 190 parameters relating to power distribution, ignition controls, balancing, charger control etc. “Our off-the-shelf products are ready-to-be-deployed and generally have all the latest features and hardware developments. If the customer needs custom features, it can take anywhere from a week to 6 months, depending on the type
Edison Analytics
Cover Story
q Advanced analytics and insight into your fleet from a single dashboard
of feature update. For example, the software takes a week to 2-3 months and the hardware takes anywhere from a month to six months; these timelines depend entirely on the complexity and urgency of the requested features,” he claimed.
Battery Energy Storage Systems
The energy mix has evolved with the emergence of Variable Renewable Energy (VRE) sources. Battery Energy Storage Systems (BESS) are known to have enabled power system operators and utility providers to store energy for use at a later point and time thus enhancing the grid flexibility. With the global BESS markets displaying a lithium-ion battery monopoly, the need for intelligent management and operations is being felt. By modelling impedance (DC) the BESS is claimed to be capable of predicting if the batteries can fulfil the demand from the grid over their ageing. Among advantages are warranty validation, troubleshooting, bidding and energy arbitration, and record keeping. Explained Aryan, “At ION, we are overcoming the limitations of traditional systems and analytical tools to maximise the potential of these batteries.” “Our battery management and intelligence platform help operators optimise the cycle life and get better RoI on their BESS deployments,” he stated. On optimal battery efficiency contradicting the pursuit of economies of scale argued to be crucial in bringing battery costs down, Aryan opined that both go hand-in-hand. “Eventually, the benefit has to roll into the total cost of ownership to the end customer,” he concluded. ION is witnessing strong traction in the EU and is expected to make announcements on the lines in the coming months. 100 per cent localised, ION is aiming to go beyond its offerings to contribute to the EV infrastructure as a whole, in 2022. ACI www.autocomponentsindia.com
AUTO COMPONENTS INDIA n DECEMBER 2020
Key Features of Edison Analytics
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Special Reads AUTO COMPONENTS INDIA n DECEMBER 2020
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The Commercial Metal Of Choice
Over the past several years, usage of aluminium in automobiles and light-weighting of trucks has witnessed the highest growth in comparison to other aluminium applications, in any segment of use. Story by: Ajay Kapur, Chief Executive Officer, Vedanta Aluminium & Power Business www.autocomponentsindia.com
Special Reads Ajay Kapur, CEO, Vedanta Aluminium & Power Business
as a core industry. Given the role, aluminium plays in supporting the core sectors and in the success of government’s visionary initiatives like ‘Make in India’, ‘Smart Cities’, ‘Power for All’, and the indigenous space programme, use of this metal in India is only going to increase with time.
A
luminium is the second most used metal in the world after steel. It has the potential to become the most important commercial metal in the future. Aluminium holds strategic importance for the economy as the commercial metal of choice for all kinds of transportation, power, aerospace, defence, infrastructure and packaging needs. Backed by rich bauxite deposits, India has the secondlargest aluminium production capacity in the world after China. Vedanta’s Aluminium Business produces more than half of India’s aluminium at an estimated output of 1.9 Million Tonnes Per Annum (MTPA) in FY20. Most developed countries have already designated aluminium
Aluminium in automobiles has been used for several years and its consumption in new vehicles is increasing steadily. Over the past several years, usage of aluminium in automobiles and light-weighting of trucks has witnessed the highest growth in comparison to other aluminium applications, in any segment of use. High strength to weight ratio, lightweight, corrosion resistance, supreme formability, high ductility and conductivity, stylish finish and infinite recyclability, coupled with the fact that bauxite (aluminium ore) mining is sustainable and eco-friendly, are some of aluminium’s unique selling properties which have made it a metal of choice for some of the most iconic automakers. High performance and elegance need not come at the cost of high fuel consumption, high maintenance and environmental impact, and aluminium ensures this to a great degree. Aluminium remains the fastest-growing automotive material over competing materials and www.autocomponentsindia.com
AUTO COMPONENTS INDIA n DECEMBER 2020
Aluminium in the automotive industry
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Special Reads
preferred material of choice among engineers and designers to help meet the expected fuel economy and emission standards by 2025.
Aluminium in auto components
The first smelter for primary foundry alloy production
is entering its most unprecedented growth phase. This is mainly because the global economy is swiftly moving towards a cleaner, greener, and more sustainable lifestyle.
AUTO COMPONENTS INDIA n DECEMBER 2020
Demand drivers
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Aluminium is the second most used metal in the auto industry today. Its usage has been rapidly increasing because it offers an environmentfriendly and cost-effective way to increase performance, boost fuel economy and reduce emissions while maintaining or improving safety and durability. Aluminium is substantially lighter than its counterparts, offering a significant reduction in weight. The metal has a higher strength-to-weight ratio compared to traditional materials that enables it to absorb twice the crash energy of mild steel, ensuring vehicular performance enhancements do not come at the cost of safety. This has a direct impact on fuel consumption, range, and carbon emissions making it the top choice for automobiles. Coming to Electric Vehicles (EV), the need for lightweight battery casings and heat exchangers www.autocomponentsindia.com
in electric vehicles, combined with autonomous vehicles’ demands for high visibility and structural integrity, is expected to further boost the use of aluminium in cars, trucks and buses going forward. Further, thanks to the metal’s thermal and anticorrosion properties, aluminium is ideal for battery frames. Aluminium is also likely to witness an increase in demand on account of growth in infrastructure for serving EVs since the metal is commonly used as a housing material for EV charging stations as well. With stricter safety and emission norms alongside the demand for light-weighting and electric vehicles, we foresee, the aluminium industry segments like extrusion, casting and rolling playing major transformational roles soon. Additionally, nearly 90 per cent of all the aluminium used in a vehicle is recycled at the end of its lifecycle, ensuring value at the end of the vehicle’s lifecycle as well. According to WardsAuto and DuPont Automotive survey, every kilogram of aluminium used reduces the weight of a car by a kilogram, if not more. This makes it the first
For more than a decade now, concerns about fuel efficiency have encouraged OEMs to replace steel with aluminium in vehicle bodies, doors, trunks, hoods, bumpers, crash boxes, brakes, cables, and wheels. With the advent of EVs, OEMs worldwide are focussing on exploring and applying new uses of aluminium in the emerging industry. Today, globally, transportation accounts for the largest share of aluminium consumption at 27 per cent. According to experts, this will increase exponentially with the average aluminium content in a car reaching 250 kg by 2025. India is behind the global benchmark when it comes to aluminium usage in vehicles. Aluminium consumption in the Indian auto sector is only about four per cent, against 11 per cent in the USA and 14 per cent in Europe. Aluminium alloys are used by the domestic auto industry majorly as alloy wheels. Around 95 per cent of two-wheelers include aluminium, averaging at seven kilograms per bike, taking the total consumption of aluminium alloy in this segment to 115 Kilo Tonnes Per Annum (KTPA). On the other hand, only 20 per cent of four-wheelers use aluminium, majorly in high-end models, which max out at 40 kg per car. This presents immense scope for domestic producers like Vedanta Aluminium, to tap into the emerging market in the automotive sector. Currently, India’s foundry market for automotive components is small (only 10 per cent of total foundry market — 10 million of cast iron + aluminium) in comparison to USA’s foundry market, which is at 14 million tonnes per annum, of which 3.3 million is aluminium (24 per cent). With an increasing focus on higher
Internal combustion engine
Today, usage of high-performance aluminium alloys in crankcases, cylinder blocks, heads and pistons are commonplace. Aluminium alloys are the preferred material for ICE components due to characteristics like low density, high thermal conductivity, simple fabrication techniques (casting and forging), easy machinability, high reliability and recyclability. Proper control of the chemical composition, processing conditions and final heat treatment results in a microstructure which ensures the required mechanical and thermal performance, in particular the high thermal fatigue resistance. Aluminium will continue to play a significant role in the continued evolution of ICEs along the lines of reduction in piston weight, increase of mechanical and thermal load capacity, lower friction, improved scuffing resistance, etc., as well as basic requirements like durability, low noise level and reduced fuel consumption.
achieving the coveted V-shaped recovery of the Indian economy from approximately two per cent to seven per cent by next year.
Future potential
India is yet to fully explore applications of aluminium in the automotive industry akin to its global peers. There is immense potential for usage of aluminium in other auto parts like engine, suspension, front end carrier, instrument panel support, rear frame, chassis and many more. In developed countries, around 21 PFAs are used in the automotive segment to achieve light-weighting in the form of various auto parts and components. On the other hand, in India, we majorly use PFAs only for manufacturing alloy wheels and to some extent, for cylinder heads. There is scope for Indian aluminium manufacturers to expand their aluminium alloy portfolio for supporting the manufacturing of cylinder heads, ABS brakes and certain other applications, replacing traditional materials.
Aluminium commodity outlook
Aluminium prices have strengthened during the second quarter of FY21 with recovery in the global economy,
Special Reads
resilient Chinese demand and a weaker US dollar. Entering the third quarter, market experts predict that the prices shall drift lower as the global economic recovery goes back to its initial rebound phase. Analysts estimate that the upward momentum of LME shall fall through Q3FY21 and average out at USD 1,750 per tonne. On the demand side, outside China, North East Asia market and the US market are in the rebound phase. Globally aluminium production will increase by one per cent YoY in CY2020, with a 1.6 per cent contraction ex. China and three per cent growth in China along with an estimated surplus of 3.8 Mt in CY2020. There has been a spike of 17 per cent in the London Metal Exchange (LME) price of aluminium, from USD 1460 per tonne in March’20 to USD 1721 per tonne in August’20. Parallelly, there has been a steady increase in demand for automobiles globally. With the Indian Inc. pulling out all the stops to emerge competitive in the postCovid global order and efforts by the central govt. to revive the economy, aluminium has a big role to play in
Vedanta’s aluminium business produces more than half of India’s aluminium estimated at 1.9 Million Tonnes Per Annum (MTPA) in FY20.
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AUTO COMPONENTS INDIA n DECEMBER 2020
performance with better safety and lower emission, this gap is going to shrink in the coming years. In fact, Vedanta Aluminium was the first in India to supply Primary Foundry Alloy (PFA) to the domestic auto sector. Until then, the country’s entire PFA demand was being met through imports, even though India has the world’s second-largest aluminium production capacity. Looking at the promise of the auto market and its import dependency, Vedanta Aluminium decided to tap into the opportunity and develop 240 Kilo Tonnes Per Annum (KTPA) indigenous capabilities at its stateof-the-art facilities in Jharsuguda (Odisha) and BALCO (Chhattisgarh) to meet that demand.
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Special Reads AUTO COMPONENTS INDIA n DECEMBER 2020
As the market for aluminium alloys in the automotive segment expands with the inclusion of newer applications, aluminium manufacturers must also look for opportunities to leverage their technical expertise and R&D capabilities to develop products customised to the needs of the market. In this direction, they could explore collaborations with the downstream industry, to unlock the entire potential of aluminium used in the auto sector and cater to the rapidly evolving aluminium requirements of the Indian automotive industry. Staying ahead of the curve, Vedanta Aluminium is already developing indigenous capabilities at its state-of-the-art smelters in Jharsuguda and BALCO to create new products and product customisations attuned to emerging needs of the auto sector.
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Challenges
One of the biggest challenges faced by the Indian automotive market is increasing imports of auto components from China and other countries. The size of the auto components imports was USD 17.6 bn in FY19. Asia, the largest source of imports for Indian autocomponents, had a share of 61 per cent followed by Europe at 29 per cent; North America at eight per cent; Latin America and Africa at one per cent each in FY19. China with 27 per cent enjoyed the status of the largest exporter in the Indian automotive market.
Way forward
Aluminium is crucial to realise the vision of ‘Make in India’. It can play a pivotal role in the changing
face of the automotive sector. This makes it pertinent to acknowledge and recognise it as a core sector and leverage the potential of the entire aluminium value chain, from mining to end-users in critical sectors of national importance like transportation, defence, aerospace, aviation, infrastructure, electrification, housing, etc. With an array of impressive products which cater to key industries, homegrown brands like Vedanta are striving to bolster the country’s self-reliance in all things aluminium, laying the foundation for India’s greener and sustainable future. ACI -----------------------------------------The views expressed by the author are his personal opinions and do not necessarily reflect the views of the ACI magazine.
Engineer at Jharusguda Casthouse.
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Special Reads
Getting Back To Top Gear: The road ahead for Indian auto component manufacturers As car sales gradually regain momentum, how can auto component manufacturers ensure and sustain not just recovery but growth?
AUTO COMPONENTS INDIA n DECEMBER 2020
Story by: Shivanshu Gupta - Senior Partner at McKinsey & Company and Barathram A - Associate Partner at McKinsey & Company.
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Special Reads AUTO COMPONENTS INDIA n DECEMBER 2020
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ndia’s automotive industry was in top gear between 2009 and 2018 – automotive sales grew at nine per cent per year, and the auto component industry grew at over 12 per cent. Building on this performance, the Automotive Mission Plan 2016–26 (a joint vision of the government and the auto industry) set ambitious goals for the sector. According to the plan, the sector could contribute 12 per cent to GDP (over the current seven per cent) and add 6.5 crore additional jobs to the current 3.7 crores by 2026. Instead, slowing sales and shifting supply chains over the past couple of years started to squeeze margins. Adding to the industry’s woes, the global pandemic necessitated a country-wide lockdown in 2020 that continues to have a deep impact on lives and livelihoods. And yet, the picture is not that bleak. With the country gradually opening up and wholesale figures for August 2020 offering a ray of hope with a 14 per cent increase in passenger vehicle sales and a three per cent increase in two-wheeler sales YoY, auto component manufacturers could rev their motors and move back into
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Shivanshu Gupta, Senior Partner, McKinsey & Company, Chennai
top gear. Making tactical changes to their existing capabilities and considering fresh approaches could allow them to thrive in the next normal. A recent McKinsey report, Shaping the new normal – India’s auto component industry, outlines actions for auto component manufacturers to foster their own growth – which could critically
Barathram A, Associate Partner, McKinsey & Company, Chennai
bolster India’s GDP. The three proposed priorities are to localise, optimise and digitise. Localising to ramp up domestic manufacturing of relevant highvalue parts could be a vital growth area for the industry. Cutting down on imports of engine components and bearings, parts that are also exported in huge quantities, would echo the country’s mission for an
pan-India contribute the top 50 per cent of all aftermarket service demand, and 43 per cent of overall demand comes from urban districts. Auto component manufacturers could zero in on the ones among these that are easiest to service through an on-ground partner (such as a service centre). A tyre manufacturer observed high growth in aftermarket sales in June and July of 2020 after it focused heavily on being agile, selling the right products and prioritising the right micro markets. Optimising to manage costs is an obvious priority when margins are strained. But what might be the best and most valuable ways to do so? Optimising product design, especially in the expensive manufacturing processes for Bharat Stage-VI components, could cut down a quarter of total costs. One such area where direct material cost could be optimised is in the production of catalytic converters – manufacturers could save up to six per cent of the incremental cost they incurred when transitioning to BSVI by relaxing the internal test cycles and integration of CAT systems. Manufacturers could also tighten processes to cut down on hidden costs, saving another 15 to 25 per cent, especially in areas including real estate, IT, insurance, logistics, packaging etc., which are traditionally overlooked as
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Special Reads AUTO COMPONENTS INDIA n DECEMBER 2020
Atmanirbhar Bharat (self-reliant India). Component manufacturers could also collaborate with global suppliers looking to relocate their manufacturing operations to India, helping to capture a USD 12 billion import substitution opportunity. For example, a large global, industrial player is looking to move over USD one billion of their spend into India and is hunting for suppliers who can nimbly respond to their requirements by quickly innovating and building scale. Making the most of these supply chain shifts could help India triple its export volume by focusing on product categories where it has a competitive edge (e.g. shafts, brakes and clutches) and building capabilities to manufacture high-value items such as gear-box parts and Heating, Ventilation and AirConditioning (HVAC) products. Another growth area could be to localise aftermarket service through collaborative partnerships that focus on the greatest demand hotspots. The automotive aftermarket has proved resilient in past downturns since people postpone buying new vehicles and settle for repairing the ones they already own. While serving the vast aftermarket across India is daunting, McKinsey’s micromarket planner analysis discovered that only 1,275 micro-markets of the 20,000
organisations focus on saving material costs. On freight logistics, for example, companies could save by setting up a full freight tender with the best per-tonne, per-kilometre rates, reducing less-thanload shipments and ensuring freight cost chargebacks, among other things. And finally, digitising could be the critical enabler that helps achieve all of these goals faster, and at lower costs. Until now, India had not really embraced digital, approaching it as an optional investment and only making minor tweaks where required. But going forward, “digital” can no longer be a mere buzzword – there is an urgent need to assimilate these tools into current processes to drive change and compete from a position of strength. Harnessing new technologies, investing in specialised talent and boosting R&D spending could be the differentiator that helps Indian auto component manufacturers to not just become more relevant globally, but also to successfully take on the global competition on home turf. A leading auto component manufacturer has recently embraced an AI-driven digital solution on the shop floor of the manufacturing plant for encouraging social distancing and managing attendance. This step could help them keep their employees safe and avoid a partial or full shutdown. The automotive industry has been going through a rough period. But it is possible to dream big again. A concerted effort to operate with localise-optimisedigitise in mind could make all the difference to the performance of auto component manufacturers, aiding not just the recovery of the industry but also making critical contributions to the GDP of the country in difficult times. ACI -----------------------------------------Shivanshu Gupta is a Senior Partner in McKinsey’s Bengaluru office and Barathram A is Associate Partner at McKinsey’s Chennai office. -----------------------------------------The views expressed by the authors are their personal opinions and do not necessarily reflect the views of the ACI magazine.
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India Sustainability Leadership Summit 2020 Frost & Sullivan and TERI had the ‘Decade of Action’ in the spotlight at the India Sustainability Leadership Summit 2020.
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Story by: Deven Lad rost & Sullivan and The Energy and Resources Institute (TERI) got together for yet another edition of the India Sustainability Leadership Summit 2020 and the 11th edition of Sustainability 4.0 Awards. Hosted virtually against the backdrop of extraordinary circumstances, the summit got stakeholders of the automotive industry to think beyond the Covid-19 induced setbacks. The summit, instead, put the spotlight on jump-starting the ‘Decade of Action’ for growth. Like every edition, the 2020 edition, as a platform, promoted sustainable business strategies for the long term. Averred Ajay Mathur, Director General of TERI - The Energy & Resources Institute, and a member of the Prime Minister’s Council on Climate Change, “Longerterm sustainability is only possible by building up linkages between the strategy of the organisation, its governance and financial performance, environmental, social, and economic governance. In other words, the entire ecosystem”. “Short-term profitability has to be nurtured together with the long-term sustainability for recovering from the pandemic today as well as to put us onto the path of a low-carbon future in a 2040 or 2050 timeline,” he stated.
Sustaining the transformation
Ambassador Ajai Malhotra, Advisor (Climate Change), Project Management Unit, TERI referred
Open to companies across manufacturing, logistics, hospitality, IT & ITES, KPO, BPO, banking, financial services & insurance, construction, telecommunications, and healthcare sectors in India and the Middle East, the Sustainability 4.0 Awards evaluation model comprised of four major parameters - people, planet, purpose, and partnership and 13 subparameters evaluated by a team of experts from Frost & Sullivan and TERI.
The winners:
n Reliance Industries Limited, Navi Mumbai won
the ‘Sustainable Corporate of the Year Award’. n Genpact India Private Limited, Gurgaon won the Leaders Award – Mega Large Business, Service Sector. n Henkel Adhesive Technologies India Private Limited, Navi Mumbai won the Leaders Award – Large Business, Process Sector. n Ramky Enviro Engineers Limited, Delhi won the Certificate of Merit – Challengers Category. n Faurecia Interior System India Private Limited, Pune won the Certificate of Merit – Safety Excellence.
to the frailties, blaming the latter for contracting global economies, deepening existential divides, and the decline in global output, sparing none. “The World Bank estimates an additional over 49 million people to face extreme poverty. It makes attaining the Sustainable Development Goals (SDGs) a big challenge,” he opined. He cautioned that a global bounceback was crucial to stay on track to attain the SDGs. Sarwant Singh, Managing Partner and Regional Leader, Frost & Sullivan drew attention to recycling, refurbishing, remanufacturing, reuse and redistribution as crucial principles to be followed by the industry. To contribute to a circular economy, it is
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Sustainability 4.0 Awards
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Upfront
Covid-19: Weighing on SDGs 2030
2. How has it impacted the automotive industry under the broad spectrum of energy that you oversee across the environment, engineering and manufacturing goals? Naynish: There was no impact on the environment and engineering goals. OEMs are still launching new vehicles and showcasing engineering capabilities. However, there is an impact on manufacturing
Naynish Kulkarni, Associate Director, Mobility Practice, Frost & Sullivan
Vivekananda Bhat, Industry Manager, Manufacturing & Process Consulting Practice, Frost & Sullivan
goals. Vehicle production has taken a big hit due to Covid-19. It is estimated that vehicle production will be half, compared to FY20. The commercial vehicle segment and the passenger vehicle segment have been highly impacted. Also, component manufacturers are not operating at their full manufacturing capacity. They are operating at about 40-50 per cent. A rise in Covid-19 cases in certain areas (auto hubs) makes it difficult for component manufacturers to even operate at reduced levels. They also have to shut down locations with positive cases, which is directly impacting their manufacturing goals.
Vivekananda: We could see companies ambitiously working on reducing Scope 3 emissions, achieving water positivity, using more renewable energy, and enhancing stakeholder engagements. Despite the impact of Covid-19, this is likely to continue as most of the companies realised that the responsible utlisation of natural resources and creating a positive difference in the society needs to be an integral part of their business strategy.
3. Having assessed and benchmarked the best practices, what are the emerging trends over the last year? Would you say these have a shelf life again with companies required to go back to the drawing board?
4. How do you find the Government intervention to drive recovery in the automotive sector (including a focus on MSME) looking at the pandemic impacted quarter? How does India compare among other Asian countries in hindsight? Naynish: There has been no separate policy or initiative to drive the auto sector recovery. However, the current economic package will bring much-needed relief
to several stressed sectors and industries as a significant proportion of the industries in the auto component sector are MSME. The impact of Covid-19 on India and other Asian countries has been similar. The pandemic has been a bane to vehicle producers in Asia, but the industry’s reaction is just the tip of a supply chain disruption as heightened demand reduction of components such as steel coils and foams are in the offing. A bigger impact on the Indian automotive sector will be felt with the imports. Raw materials like steel plates, foams, and polypropylene, and finished products like electronic components are all imported from other countries. 5. Do you foresee consolidation or a higher degree of collaboration in the automotive supply chains? Naynish: It is difficult to comment on the short term impact, but in the long run, consolidation is definitely on the cards. Effective collaboration with supply chain partners requires organisations to share valuable information in real-time (which may or may not be a comfortable option for manufacturers). Consolidation requires joint planning, process redesigning, as well as sharing some level of risk and rewards, besides collaborative decisions on several issues, etc.
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AUTO COMPONENTS INDIA n DECEMBER 2020
1. Has the pandemic put off the targets for SDGs 2030 in the near term given the existential crisis for businesses? Vivekananda: Covid-19 has stalled the developmental activities across the world. The impact of this pandemic will be long-lasting, influencing all spheres of human lives and slowing all developmental activities including, ambitious and aspirational Sustainable Development Goals (SDGs). Covid-19 had negatively affected several goals including, SDG 1 (no poverty), SDG 2 (zero hunger), SDG 3 (good health and wellbeing), SDG 8 (decent work and economic growth), and SDG 10 (reduced inequalities). At the same time, the pandemic had brought temporary relief in areas related to SDG 12 (responsible consumption and production), SDG 13 (climate action), SDG 14 (life below water), and SDG 15 (life on land) with shortterm gains.
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crucial to build upon the aforementioned principles right from the design stage, he said in accord with the industry views. “From day one of designing the products, you can achieve it over the lifecycle of a vehicle and the ecosystem, for instance. Suppliers, manufacturers, retailers down to the landfill waste management could contribute to a linear economy,” he expressed. On ‘innovating to zero’, the mega vision of shifting focus and development on products and technologies to attain the latters’ goals of bringing social innovation to the forefront, Singh was quick to highlight the 17 SDGs set by the United Nations and the underlying goals of innovating to zero gaining significance amidst a pandemic. “Sustainability is a circular economy where goods and services are produced in a sustainable manner and are the next big trillion-dollar economy,” he explained. He also cautioned the industry to brace itself for a two-speed economy where one economy could recover faster than the other case in point China, India and Europe.
AUTO COMPONENTS INDIA n DECEMBER 2020
Recession and economic stimulus
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Singh, in a pertinent observation, drew attention to the recessions being backed by economic stimulus. “This recession has an economic stimulus too and a large portion of the stimulus is reserved for building and developing sustainable technologies,” he mentioned. Singh gave example of France and Germany where the government doled out special incentives to boost the
Sarwant Singh, Managing Partner and Regional Leader, Frost & Sullivan
demand for electric vehicles. Of the opinion that it had the potential to change the transport network of the future, he said, “Last year 2.3 million electric vehicles were sold. In July 2020, they hit the peak after a big dip in MarchApril for most countries. There has also been a huge decline in interest for ICEs.” This change, opined Sarwant, has brought multiple industries including the chemicals industry in the quest for more sustainable materials. It has also brought the energy industry together, he added. Simon Stolp, Country Lead (India) - Energy and Extractives, World Bank explained macro-level fundamentals as an imperative to jumpstart the decade of action. “I think if we look at Covid-19 through that philosophical lens, we can see that there is actually an opportunity in this crisis to jumpstart that decade of action. This I think is wound up in the structure of the economic stimulus that will be distributed across the globe, including in India over the coming months and years,’ he explained. On the short term horizon, Stolp called
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Shloka Nath, Executive Director, India Climate Collaborative Head of the Sustainability and Special Projects at Tata Trusts
Ajay Mathur, Director General of TERI - The Energy & Resources Institute, and a member of the Prime Minister’s Council on Climate Change
upon the industry to focus on job creation. He also urged the need to support “shovelready” projects and cautioned against being bogged down by long lead times. Atul Bagai, Head India Country Office, UN Environment urged the industry and government alike to embed sustainability into the economic recovery weighed down by Covid-19.
energy-efficient technologies and processes by MSME based on recommendations will set out,” she said. She recommended a green finance task force be formed on the lines of the joint effort of the UK government in London. “The taskforce designs the overall roadmap for promoting finance. It advocates the necessary policy and regulatory changes,” she explained. Terming it essential to have coordination amongst policymakers, regulators, institutional investors and to create consumer awareness, she expressed it was time for sustainability needs to go from “niche to mainstream.” The need to build a rural economic resilience also found a mention. María Mendiluce, Chief Executive Officer, We Mean Business recommended active participation from corporate India and its supply chains to fight climate change. “Corporate India has the opportunity to come out of this pandemic as innovators, and champions or sustainable champions. The next 10 years are crucial, decisive, and will decide the future,” she concluded. ACI
PPP model
Shloka Nath, Executive Director, India Climate Collaborative Head of the Sustainability and Special Projects at Tata Trusts reinforced the need for PublicPrivate Partnerships (PPP). “It is crucial to overcome the Covid-19 crisis and to source additional finance to drive the transformation,” she emphasised. She called for the need for a structural economic recovery through the stabilisation of financial institutions and the use of information planes. She went on to highlight the Micro, Small and Medium Enterprises (MSME), hit hard by the pandemic and deemed to have been primed for transformation. “Capacity building for the adoption of
Trending
A SIAM Environment Series Part 2 Environmentally Sound Management of ELVs in India The second lecture of the two-part environment series provided an overview of the technological imperatives in design and material eco-efficiency of ELV recycling. Story by: Deven Lad manufacturing process on the whole. Dr Hans-Rainer Lotz, Recycling bei Volkswagen AG drew the attention of the Original Equipment Manufacturers (OEMs) to the possible means of turning recycling into an easier and less hazardous process. Averred Dr Lotz, “As per the directive of the European Parliament and the council on ELV (2000), treatment-related requirements include environmental and technical standards for pre-treatment ( removal of fluid and airbags ) and dismantling.” “Less use of hazardous substances in vehicles has been suggested by the directive with restrictions on Mercury (Hg), Cadmium (Cd), Lead
AUTO COMPONENTS INDIA n DECEMBER 2020
Image courtesy: CERO (Mahindra MSTC Recycling Pvt. Ltd.)
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n part one (refer to the October 2020 issue of the magazine) of the two-part environment series, SIAM provided an overview of the supplier and the Original Equipment Manufacturer (OEM) function, regulations and policy, and the economic impact of recycling ELVs. Taking it forward, the second and the final lecture focussed on the technological imperatives in design and material eco-efficiency of ELV recycling. The focus was on vehicular designs supporting vehicle refurbishment. It outlined the role of material designers in incorporating the material advancements at the component design stage and in the
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(Pb) and Chromium (Cr),” he cited. Dr Lotz admitted to the process challenging OEMs and also expensive to deal with.
Recycling at Volkswagen
As per the European Parliament directive, the design requirement for new vehicles must take into full account and facilitate the dismantling, reuse and recovery, including components and the materials used. Dr Lotz cited the Volkswagen policy - ‘Internal Standard 99000’ claimed to make dismantling an easy process, in compliance with the legal requirements. On challenges, he called upon the need for OEMs to liaise with material equipment manufacturers. There is a need to integrate the high-quality recycled materials and other parts to help the market mature, he opined. Citing the European parliaments’ European circle plastic alliance, he highlighted the Volkswagen groups’ commitment through active participation in group activities including supplier exhibits of recycled materials complying to group standards like the component and material coding suited to reuse and recovery. Dr Lotz also highlighted the International Dismantling Information System (IDIS) initiated by 10 European OEMs encompassing safety guidelines and key requirements.
AUTO COMPONENTS INDIA n DECEMBER 2020
CERO Recycling
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Speaking on ELV infrastructure, Sumit Issar, Managing Director at Mahindra Intertrade Ltd., called upon the stakeholders to tap the potential of organised recycling. Issar projected the 2025 ELV volumes for two-wheelers to reach 91.6 million from 58.8 million, 36.4 million for cars and commercial vehicles up from 22.7 million. “India imports close to six to seven million tonnes of scrap steel every year due to the gap in domestic demand and supply. The unorganised process in India leads to unsafe disposal of hazardous waste and lacks the process and transaction transparency that needs to be addressed,” he explained. Adding that an efficient recycling process could have manifold www.autocomponentsindia.com
Hans-Rainer Lotz, Recycling bei Volkswagen AG
benefits; efficient recycling could help save energy, reduce emissions, conserve resources, preserve foreign exchange and create employment. For instance, CO2 emissions are reduced by 58 per cent through the use of ferrous scrap, pointed Issar. Citing operations and the threeyear roadmap at CERO Recycling, a Joint Venture between Mahindra Accelo & MSTC (A Government of India Enterprise), mentioned Issar, the latter plans to invest in 25 shredding units across the country. The exercise would lead to a recycling capacity of 2,00,000 cars per month. Backed by an approximate Rs.1000 crore investment it will also help in job creation by way of the new shredding centres. Explained Issar, typically, a car was equivalent to 65 per cent steel, 10 per cent plastic, nine per cent aluminium, five per cent rubber and one per cent copper. Issar lauded the government for its efforts in helping formalise the sector.
Circular Economy in India
Ashim Sharma, Partner and Group Head, Business Performance Improvement Consulting (Auto, Engg. & Logistics) at Nomura Research Institute presented a comparison of the circular and linear economy while touching upon the ELV recycling scenario in India. “A circular economy focusses on collecting an ELV in an organised manner before recycling it and meeting the objective of maximum material recovery in an effort to minimise
Ashim Sharma, Partner and Group Head, Business Performance Improvement Consulting (Auto, Engg. & Logistics) at Nomura Research Institute
waste,” explained Sharma. “India will have more than 22 million ELVs by 2025 which translates to a potential of generating Rs.32,700 crore worth of scrap value by 2025,” he mentioned. An estimated 2.8 million four-wheelers at a scrap volume of three million tonnes and valued at Rs.14000 crore, 1.2 million heavy trucks and buses at a scrap volume of two million tonnes, valued at Rs.8000 crore are projected to make up the tally. In addition, 17.8 million two-wheelers at a scrap volume of 2.1 million tonnes valued at Rs.100,000 crore and 0.7 million three-wheelers at a scrap volume of 0.3 million tonnes valued at Rs.700 crore are projected to constitute the rest.
A win-win outcome
ELV recycling in India will result in both direct and indirect benefits for the environment. Citing the government focus on vehicular pollution, Sharma was quick to blame the production processes of virgin materials, especially the extraction oriented mining activities. “This involves significant emissions of greenhouse gases such as CO2. In comparison, the recycled materials are low on carbon footprint,” opined Sharma. “ELV recycling can be a major boost to new vehicle sales too besides directly reducing the waste dump in landfills and helping the country save valuable forex reserves,” he said. Citing key policy documents and guidelines released over the years with the objective of organising the market and harnessing its full potential, according to Sharma, pursuing
ELV recycling will lead to a win-win outcome for OEMs irrespective of policy developments. Calling upon the need for organised recycling and a constant outflow of ELVs, mentioned Sharma, “It will also lead to an improvement in inventory management at dealerships with the latter doubling up as collection centres.”
Benchmarking with the globe
For representation purposes only.
The ELV recycling mechanisms across major global geographies are regulated by national-level legislation, with the industry-driven USA model an exception. Explained Sharma, China is closest to India in terms of ELV PARC however, the industry maturity is very low making the former an inappropriate reference point. “Europe and Japan are the best reference points for India. Around 70 to 80 per cent of vehicles are recycled in Europe and Japan,” he opined. Explaining that the large scale recyclers dominate the market including in the USA with the smaller informal sector constituting the rest. Taking a leaf out of the global case studies, Sharma drew attention to the consumer incentives and extended producer responsibility as being instrumental in the success attained. “Recycling process is
similar in both the models ( European and Japanese ) until the step of shredding. However, the post shredding treatment differs significantly,” he stated. EU and Japanese recyclers target material recovery rates of 80-85 per cent, and it is the R&D progress that has played a major role in the high recovery rates, cited Sharma. As India looks to grow into an organised recycling market, Sharma called upon the need to learn from the advanced markets. To begin with, he urged the stakeholders to streamline the current ELV collection and dismantling process which he said was highly unorganised with a large number of small players using unscientific methods for processing. “The use of the
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Trending AUTO COMPONENTS INDIA n DECEMBER 2020
Dr Regina Kohlmeyer, Scientific officer, German Environment AgencyUBA
Sumit Issar, Managing Director at Mahindra Intertrade Ltd.
aforementioned unscientific methods leads to severe environmental pollution besides endangering workforce safety and resulting in low levels of material recovery in contrast,” he warned. Dr Regina Kohlmeyer from the German Environment Agency- UBA shed light on international policies and practices for eco-efficiency in the ELV management process. Speaking on the eco-efficient design, the ban on hazardous substances and heavy metals, Kohlmeyer cited the example of Toyota and Volvo. Toyota’s easy to dismantle wire harness innovation eliminates the need to interfere with other components. Volvo, for instance, is aiming for a 25 per cent plastic recycling capability for cars by 2025. Speaking of countries encouraging manufacturers to integrate an increasing quantity of recycled materials in vehicles, Kohlmeyer cited the need to adopt a design plus recycling approach. For instance, under the European circular economy plan 2020, a new framework for batteries will be proposed in the EU and benchmarked by other countries looking to follow suit. Silvia Vecchione, Senior Environmental Policy Manager at the European Automobile Manufacturers’ Association (ACEA) called for the need to revise the European circular economy action plan 2.0. “The revision of rules will reduce virgin material consumption and eliminate waste generation and resulting pollution. A harmonised system could help in better management of information on substances of concern along the supply chain and can help in identifying them in waste streams,” she explained, stressing on the need for better enforcement. Joshi Devaputhran Sikha, Director of Vikar Recycling Solutions drew attention to the online platforms like ScrapMycar. Admitting to disposing of ELVs being a difficult process and a highly stressful one for the owner, Sikha stressed on the need to benchmark with the advanced markets and called for the need to devise a stress-free and transparent process suited to the country. ACI
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International
DEP MeshWorks Tyre Modelling The Hex Meshing Tool from DEP MeshWorks enables rapid tyre modelling and performance optimisation across vehicular segments.
T
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Story by: Deepti Thore yre modelling has come a long way from just representing tyre data obtained from mathematical representation limited to static conditions. A testimony to it being more dynamic today than ever before is the proprietary software platform ‘MeshWorks’ from Detroit Engineered Products (DEP). MeshWorks is claimed to enable a technologically superior tyre modelling technique for motorcycle tyres, passenger car tyres, and offroad tyres. Through hex meshing, a complex but standard collection of cubes, concept designs are used to analyse geographical and cartographic data. The latter is known
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to study the rules of the spatial arrangement of phenomena and their interrelationships, dependence, and development. According to Basant Sharma, Vice President, DEP, it is a tedious and time-consuming process to mesh or model the complexity of tyre geometry. Especially the treads. Of the opinion that the time spent to model tyre treads constituting the little grooves and ridges, crucial to braking and safe manoeuvring is directly responsible for the end quality. It also results in better simulation and comparison against the real-world scenario, he explained. He cites the amount of time a user can spend is usually very limited, and thus any automation in modelling and meshing are always welcome.
Overcoming shortcomings of conventional tools
It is well known that tyre modelling requires a lot of expertise and takes up several hours. Addressing this void, DEP
MeshWorks ‘Hex Meshing Tool’ helps overcome the shortcomings of existing traditional hex-meshing tools known to be both tedious and mostly manual. Naturally, they are also dependent on skilled personnel. Complex geometries make the task even more difficult. From highly automated to semi-automated tools, DEP users can look forward to meshing such complex geometries with minimal technical expertise. For instance, a 2D structure can be analysed and converted into a 3D model. In the 3D model, calculations based on the inflation pressure are applied to the valve of the tyre. Load application tests are carried out to analyse the contact patch. Additionally, driving simulations are also applied. Repairing meshes, a largely manual process is also improved drastically. Mentioned Radha Krishnan, Founder & President, Detroit Engineered Products, “Essentially, there are two components that affect the tyre behaviour- the tyre structure itself, and the air around it. The tyre design has to be such that it can withstand varied weather conditions of summer, winter and monsoons.” Sharma drew attention to four broad factors known to vary for each vehicle tyre type: Vehicle to road interface, vehicle load support, road surface friction, and road irregularities. “The heavy-duty off-road ones have the maximum variable variants of factors,
and must logically account for the maximum flexibility and robustness in terms of design,” he opined. Building hex mesh for modelling tyres is, therefore, a challenging task along with the need for matched nodes at the interfacing segments. According to Krishnan, the way a tyre interacts with the road affects its behaviour, and it passes that directly to the body of the car, and in turn the passengers compelling automakers and tyre manufacturers to work heavily in the tyre design area to get the specifications accurate. Meshwork also provides automated tools for better mesh flow, targeted mesh size or pattern in the area of interest etc.
Morphing and parameterisation
In concept tyre modelling, existing tyre CAE models are rendered into new shape
International
The way forward
Currently, at the design and validation stage, MeshWorks as a tool will also enable retreading or aftermarket to help save time and create a new variant for the market faster, opined Sharma. For instance, if a tyre maker has hit the road with a tyre, but found challenges that were not accounted for and need a revised design, instead of having to work from scratch on a new design, through MeshWorks, the manufacturer can build on the existing CAD model and optimise the design. Sharma drew attention to India being an easier market for tyres unlike other geographies asking for tyres to be changed as per the season. “Technologies available to companies are no longer restricted to geography and many companies could very well be performing their design and optimisation in India,” he concluded. ACI
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AUTO COMPONENTS INDIA n DECEMBER 2020
Radha Krishnan, Founder & President, Detroit Engineered Products
Image Courtesy: DEP MESHWORKS
Basant Sharma, Vice President, Detroit Engineered Products
and size by creating quick design and CAE concepts without creating actual 3D CAD models for these concepts. This is also known to significantly automate the process. “By using morphing and parameterisation techniques in the design stage, companies can find fault and rectify and reevaluate at an initial stage itself, instead of at a prototyping and testing stage ensuring a faster go-to-market implementation,” mentioned Sharma. In addition to hex meshing, DEP also provides meshing tools to simulate tyre models accurately using the advanced modelling techniques like midplane meshing among others to correlate the results better with real-world scenarios.
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