AUTO COMPONENTS INDIA JUNE 2021 by Next Gen Publishing Pvt Ltd

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COMPONENTS

INDIA

Business Filing

Vol 8 Issue 04

Voice of the Automotive Suppliers

Saietta Group Partners Padmini VNA

Drivetrains For Real Demand

Upfront Exclusive

Job Hunting? We’ve got you covered

Vehicular Platform Consolidation

G.S. Ramesh, Founder & Chairman, Layam Group

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Cover Story Drivetrains For Real Demand Automotive manufacturers are tapping into the mix of next-generation technological developments with localisation for vehicular platform consolidation. Ashish Bhatia looks at this strategy to manufacture drivetrains for the real demand.

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Sarwant Singh has ‘Switch’ roles Amara Raja commits to environment and sustainability Steel manufacturers allow states a breather OEMs pass on input price hikes Previous peak only by FY23E RBI measures to deal with the second wave Motherson Sumi restructuring gets a majority nod Bullish on exports Martin Uhlarik is Global Design Head at Tata Motors

12 Upfront 16 Mobilised

Opportunity In Adversity

Earth Energy Game Plan

24 Special Reads

Downstream Aluminium: Meeting The EV Demand

27 Business Filing 30 Trending

Saietta Group Partners Padmini VNA

 Mission Development And Business Continuity  Auto Technology Partnership Summit

38 International

 Modular Electric Vehicles  Automotive-Grade Supercomputer

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608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Tel +91 9321546598, Email us at a.bhatia@nextgenpublishing.net Executive Editor Ashish Bhatia Editorial Advisory Board H. S. Billimoria, Aspi Bhathena Head - Design & Production Ravi Parmar Correspondent: Deepti Thore Asst Art Director Ajit Manjrekar Production Supervisor Dinesh Bhajnik Publisher Marzban Jasoomani General Manager – North & East Ellora Dasgupta General Manager – South Girish Shet Deputy General Manager – North & East Chanchal Arora (Delhi) Regional Marketing Manager Salma Jabbar (Chennai) Marketing Manager Minocher Parakh (Mumbai) Manager Circulation - North and East Kapil Kaushik (Delhi) Subscription Supervisor Sachin Kelkar Tel +91 9321546598 Apple Newsstand & Magzter Queries: help@magzter.com Territory Sales Incharge (Circulation) Srinivas Gangula (Hyderabad) Cell +91 09000555756 Territory Sales Incharge (Circulation) Vidyasagar Gupta (Kolkata) Mob: 09804085683 Regional marketing offices Next Gen Publishing Pvt. Ltd. 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India, Mumbai -400013. Tel +91 22 9321546598

It has been heartening to see the industry do their bit, wherever possible, all this time while keeping a focused approach on development and business continuity.

peaking at the World Health Assembly, Dr Tedros Adhanom Ghebreyesus, WHO Director-General while paying a special tribute to all health workers admitted to the world remaining in a dangerous situation. This after 17 months into the life-changing crisis. That 2021 has reported more cases and is likely to surpass the death count of 2020 is not soothing on the ears either. It’s also not just a country centric fight! The threat of the virus will loom large until every single country can get rid of it, he cautions. The vaccine crisis is akin to a “scandalous inequity that is perpetuating the pandemic.” Notably, member states have been urged to support a “sprint to September” to vaccinate at least 10 per cent of the population of every country by September, and a “drive to December” to achieve the goal of vaccinating at least 30 per cent by the end of the year as a minimum. International Monetary Fund (IMF) has proposed to vaccinate 40 per cent of the world’s population by the end of 2021 and 60 per cent by mid2022. Undoubtedly, the need of the hour is to empower people and communities; support businesses and workplaces; implement national vaccination strategies. It has been heartening to see the industry do their bit, wherever possible, all this time while keeping a focused approach on development and business continuity. Ashish Bhatia Executive Editor | a.bhatia@nextgenpublishing.net

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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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Sarwant Singh has ‘Switch’ roles In a rare transition seen in the consulting business world, Sarwant Singh Ex-Managing Partner - Middle East, Africa and South Asia at Frost Sullivan has joined the leadership team of Ashok Leyland owned Switch Mobility. He joins the latter as the President and Chief Planning Officer effective May 01’ 2021. In an additional charge, he has taken up the role of Chief Executive Officer of the Group’s mobility service company, Ohm Global Mobility Pvt. Ltd. A self-proclaimed passionate observer of commercial emobility, Sarwant brings along a rich experience from his consulting background including a stint as Board Member at Vasuki and a stint at Perkins Engines. A Bachelor of Engineering, Electrical graduate, Singh holds an MBA, International Business qualification from the University of Leads. He also holds an Executive, Business Marketing Strategy qualification from the Northwestern University Kellogg School of Management.

Amara Raja commits to environment and sustainability

Amara Raja Batteries Ltd. (ARBL) resumed operations at its Nunegundlapalli and Karakambadi plants at Chittoor District, affecting May 08’ 2021. The development assumes significance as it comes after the Hon’ble High Court of Andhra Pradesh granted an interim suspension of the orders passed by the Andhra

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Pradesh Pollution Control Board (APPCB). As per the company release, ARBL will continue to focus on the best-in-class systems and processes for environmental, safety and health practices, and will continue to engage closely with APPCB to resolve any potential issues. Expressing confidence in meeting all its supply

commitments, the company reached out to stakeholders assuring them that the temporary disruption caused by closure would not have any material impact on its operations or order book. The company is assessing both the impact of the short term disruption and the future demands to be met in the following period. www.autocomponentsindia.com

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Steel manufacturers allow states a breather Steel manufacturers deserve a mention for their sterling efforts to help the ailing healthcare infrastructure in the country meet its oxygen requirements amidst a pan India oxygen emergency crisis in the aftermath of the second wave of Covid-19. For instance, led by Chairman Naveen Jindal, steel manufacturer Jindal Steel and Power Ltd. over the month diverted huge reserves of oxygen to several parts of the country. The company is claimed to have made

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over 500-tonnes of oxygen available with a daily estimate of 100-tonne liquid medical oxygen supplied from oxygen plants like six MTPA integrated steel plant in Angul, Odisha. The facility is known to develop special grade plates for critical applications including automotive, earthmovers and bulletproof vehicles. In another instance, Steel Authority of India (SAIL), amongst the country’s largest domestic steel producers, ramped

up its reserves of liquid medical oxygen too. The manufacturer is known to have increased its supply of liquid medical oxygen from its integrated steel plants located in Bhilai (Chhattisgarh), Rourkela (Odisha), Bokaro (Jharkhand), Durgapur and Burnpur (West Bengal) by 500 metric tonnes by the second week of April. By April 2021 alone, SAIL supplied 17,500 metric tonnes of liquid medical oxygen to 15 states across the country.

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OEMs pass on input price hikes Raw material prices including prices of precious metals spiralled northwards. To deal with the rising input costs, Original Equipment Manufacturers (OEM) have had to pass on the price hike on more than one occasion to end consumers. For instance, Tata Motors announced an average price hike of 1.8 per cent on its passenger vehicle range across models and variants effective May 08’ 2021. It came as a follow-up to the April’ 2021, hike from market leader Maruti Suzuki. It was the second hike following the first round of hikes by major OEMs in January 2021. Raising the prices by 1.6 per cent on an average, the decision is believed to have factored the rise in input costs across precious metals like steel, copper, aluminium, rhodium and plastics besides the rise in crude oil

prices. The Mahindra Group is known to have raised prices by 1.8 per cent to three per cent even as it looks to avert the hike through internal measures.

Volvo Cars to avert the impact of the pandemic hiked prices by rupees one lakh to two lakh in nearly three years after it raised prices in 2018.

Previous peak only by FY23E As per FADA data, automotive retail volumes fell 28 per cent on a Month over Month basis in April 2021 to approximately 11.85 lakh units. As part of the decline, the two-wheeler segment sales declined by 27.6 per cent while the PV segment fell 25.3 per cent. The decline in three-wheelers, commercial vehicles and tractors was pegged at 43.1 per cent, 23.7 per cent and 44.6 per cent respectively. Notably, the two-wheeler and PV inventory levels were claimed to have remained broadly unchanged at 30-35 days and 15-17 days, respectively. The Covid-19 second wave across India that has forced localised restrictions on manufacturing and distribution is said to have heavily impacted automotive sales in the month. As per FADA, the near

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term outlook is also soft. Consumer sentiment has also been dented going by the dealership walk-ins at 30 per

cent. On a longer-term basis, the body sees the industry reaching the previous peak sales of FY2019 only by FY2023E. www.autocomponentsindia.com

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RBI measures to deal with the second wave Reserve Bank Of India, Governor , Shaktikanta Das announced measures to deal with the second wave of Covid-19 earlier in May. In his address, he said, “The global economy is showing signs of recovery; activity remains uneven across countries and sectors, clouded by downside risks.” Of the view that localised and targeted containment measures enabled businesses to adapt, he opined that the effect on aggregate demand was expected to be moderate in comparison to last year. The Governor credited the healthy domestic financial conditions to the abundant surplus liquidity. To support the micro, small and other unorganised sector entities, the threeyear repo operations of Rs.10,000 crore at repo rate, for fresh lending up to Rs.10 lakh per borrower; facility up

to October 31’ 2021 for individuals, borrowers and MSMEs with aggregate exposure up to Rs.25 crore who did not avail restructuring under any previous frameworks, were classified as standard on March 31’ 2021 and deemed eligible to be considered under Resolution Framework 2.0. For individuals and small businesses who have availed restructuring of loans under Resolution Framework 1.0, where a moratorium of fewer than 2 years was permitted, lending institutions were given a free hand to increase the period and or extend residual tenure up to a total of two years. The governor called upon the stakeholders to remain resolutely focused on a post-pandemic future of strong and sustainable growth while guarding against future waves. On the

measures, Deepak Sood, SecretaryGeneral of ASSOCHAM was among the first to react and is known to have welcomed the steps while seeking more in terms of incentivisation or rationalisation of GST for the MSME.

Motherson Sumi restructuring gets a majority nod In a regulatory filing with the stock exchanges about the outcome of the Hon’ble NCLT convened shareholder meeting, Motherson Sumi Systems Ltd. (MSSL) informed that the public shareholders (non-promoter) voted in favour of the proposal with an overwhelming majority. It is said to have paved the way for the successful completion of the proposed restructuring. 99.44 per cent of the non-promoter shareholders who voted, were in favour of the proposed restructuring. In addition, the requirement of obtaining creditors approval was also waived off by the Hon’ble NCLT for the scheme. Post the proposed reorganisation is completed, two growth-focused listed companies will emerge. Of the two companies, Motherson Sumi Wiring India Ltd. (MSWIL) will be the largest listed www.autocomponentsindia.com

automotive wiring harness player in India with a nationwide manufacturing footprint. Expected to benefit from the continued parentage of MSSL along with an increased focus from Sumitomo Wiring Systems, Japan (SWS) will cater to the Indian automotive market. It will also work towards bringing in new solutions for electric vehicle offerings. The second company, Motherson Sumi Systems Ltd. (MSSL) combined with the business of Samvardhana Motherson International Ltd. (SAMIL) is expected to form the base of the stated ‘Vision 2025’. The latter’s full ownership of its international business Samvardhana Motherson Automotive Systems Group BV (SMRPBV) is expected to simplify the group structure and enhance cash flows. Diversifying MSSL’s revenue and product mix, the move brings along the addition of new products like

automotive lighting, shock absorbers, sheet metal, HVAC and others in line with the company’s 3CX10 strategy. JUNE 2021 n auto components india

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Bullish on exports The Government of India is bullish on exports. Piyush Goyal, Minister of Railways and Minister of Commerce and Industry expressed that the government is confident of realising the ambitious target of USD 400 billion merchandise shipments on the back of encouraging figures over April and May (period under consideration until May 07’ 2021). For instance, India’s exports in April jumped threefolds to USD 30.21 billion from USD 10.17 billion in the same month last year. In the first week of May 2021, India’s exports grew by 80 per cent to USD 7.04 billion as per the commerce ministry’s preliminary data compared to USD 3.91 billion between May 01-07’ 2020 and USD 6.48 billion in the same period in 2019. He drew attention to the department of

commerce having undertaken several issues with the Ministry of Finance for an early resolution. The issues include remission of duties and taxes on export products, merchandise export from India scheme, and the

inverted duty structure. He particularly emphasised the potential of enhancing exports in auto components and engineering in the meet addressing export promotion councils.

Martin Uhlarik is Global Design Head at Tata Motors Martin Uhlarik, the Head of Design, UK for Tata Motors European Technical Centre (TMETC) took over from ace designer Pratap Bose, Vice President - Global Design as the Global Design Head of Tata Motors. Bose has chosen to pursue opportunities outside the company and is reportedly expected to join the Mahindra Advanced Design Europe (MADE) centre in the West Midlands, in the UK. In his nearly three-decade career, Uhlarik has gathered a diverse experience from his stints as Senior Interior Designer at Skoda Auto a.s., Project Design Leader at Nissan Design Europe, London, and as UK Design Director at SAIC Motor UK Technical Centre Ltd. Guenter Butschek, CEO and MD, Tata Motors, said, “Martin is an experienced automobile designer with deep domain knowledge of design,

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keen understanding of international trends and extensive operational experience with leading automobile companies in several geographies. His rich experience and expertise will inspire our teams to further enhance our vehicle design philosophy and language.” He also thanked Bose for his services and wished him the best for the future. Uhlarik will continue to operate from TMETC in the UK and will lead teams in the three Tata Motors Design centres in Coventry (UK), Turin (Italy) and Pune (India). He will report to Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors. He holds a degree in Industrial Design from the Ontario College of Art and Design University in Toronto, Canada and a degree in Transportation Design from Art Center College of Design in Vevey, Switzerland. www.autocomponentsindia.com

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pfront | Exclusive

Opportunity In Adversity

In an upfront interaction, G.S. Ramesh, Founder and Chairman of the Layam Group shares with Ashish Bhatia the need to scout for your opportunity in adversity, referring to the employment landscape in the automotive manufacturing and services sector.

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Upfront | Exclusive Q. Give us an insight into how the Layam Group business has evolved over the years and how have you aligned to the presentday employment landscape of the automotive manufacturing and services sector? A. Conceived over two decades ago, the idea was to leverage my experience in setting up the Hyundai Motors, Chennai plant. My observation is that Human Resource (HR) is prioritised on a need-based use case scenario instead of looking at with a long term lens as the standardised need of any organisation. We studied the outlook on human capital employment. It clicked to us that there was a dire need to sensitise people about the importance of HR. For me, HR needs are underlined by the practice of sustaining honesty in a relationship with the human capital brought on board to join the respective team. It has to be looked upon as the most crucial asset for any business. When we looked at the employment landscape across the country, we found more than three and a half lakh candidates entering the market. They were not job-ready when seen through the conventional lens. They included dropouts (technical and or general). I started to focus on these candidates at a time no one bothered to create an opportunity for them. I created a business model for clients in the engineering industry, for instance. Allaying fears of unskilled labour impacting quality at that point and time, the company shortlisted these so-called unfit candidates and streamlined them to perform as contract manpower. While giving back to society in my way, the industry also began to reap the benefits of this additional manpower that was erstwhile sidelined. Q. A recent report from the CEDA estimates the job loss in the manufacturing sector at 31.7 per cent for FY2021. How do see the landscape changing in the near to medium term? www.autocomponentsindia.com

The need of the hour is for the industry to create a more sustainable model. Today the industry is making do with retaining the critical manpower to keep the business alive. A. The manufacturing engineering industry is market-driven. Here a push and pull factor dictates the rise or fall in demand for human capital. It’s a factor in an economy where supply and demand play a crucial role in driving the job market. For instance, if the value chain at the top senses a demand drop it leads to a chain of reactions and everyone is trapped in the vicious circle. The need of the hour is for the industry to create a more sustainable model. Today the industry is making do with retaining the critical manpower to keep the business alive. The business models need to be built such that we don’t wipe out human capital from the system on a need-basis. For instance, while making a hue and cry during the labour migration, perhaps we needed to be more sensitive about their needs beforehand to retain them. The need of the hour is to focus on strengthening the systemic structures, people, processes and performance.

We have to relook at ourselves to align with Darwin’s theory of which suggested that organisms that best adjusted to their environment are the most successful in surviving.

Q. From an MSME perspective, with many struggling to sustain a working capital during the peak of the pandemic, did companies have a choice other than retaining the critical manpower? A. In my opinion, such decisions were based on the criteria of the employee cost to the company. It either creates or kills! So you had to take austerity measures, you could have cut down on a stream of expenses over just trimming the human resource which is the easiest to save on. It cannot however be your go-to excuse. There has to be a survival instinct that seems to be missing in such instances. We have to relook at ourselves to align with Darwin’s theory of which suggested that organisms that best adjusted to their environment are the most successful in surviving. I would also like to add that purely from a business perspective, these decisions have a cost attached. You are letting go of a skilled worker now from a short term perspective. It will impact the process and productivity especially when you restart. It could also be the window for quality issues to creep in. You need more instances of the OEMs or the principal employers taking care of the vendors and so forth. Q. Having looked at the industry from close quarters, how do you look at the cause and effect on the entire value chain including tier suppliers and the ancillaries? A. It’s a top-down approach. It starts from the OEM level because they are takers. Any disruption impacts the bottom tier with a chain of reactions. If the OEM cuts its requirement, there is bound to be a cascading effect down the value chain proportionately. The impact was bound to have been felt not only by the manufacturer but by the entire ecosystem. It impacted everyone. However, it was more panic that came through in the initial reactions, in hindsight. It was also about who handled it better. A panic reaction from the top hierarchy can never set auto components india n june 2021

pfront | Exclusive looking at this general class and fitting them in as contract manpower as discussed earlier.

a good example and will not instil confidence in the subordinates. Q. Are there enough jobs in the market today and do you believe where there is adversity there is an opportunity? A. I am with you 200 per cent on every adversity presenting an opportunity. In continuation, I would want employers to convert the ‘headcount’ to ‘braincount’. I’ll give you an example. I picked up an ordinary 10th standard pass out, trained him and today he is managing a team of 300 diploma holder, engineers. The need is to go in-depth in human resource analytics to determine the extent of a candidate’s contribution. Q. Does the impact apply equally to both the white-collar and bluecollar jobs in the manufacturing and services sector? A. Yes. The blue-collar is a critical mass while the white-collar is a brain count. The latter is a limited mass which controls domains like research and development and general management etc. Many started thinking, it’s the right time to downsize and create a recall structure. It paved the way for a model where people with a higher cost to the company could be axed to lower costs in a bid to create a manageable situation. Perhaps the thought process was to take advantage of the

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situation and improve the bottom line. Whenever we talk of costs we first seem to think of trimming the manpower. Why did you recruit them in the first place? Maybe a rebellious question, but these sort of questions are in need of the hour. On an average, the attrition rate has been 20-23 per cent with some industries at a higher rate of 30 per cent on an average.

A panic reaction from the top hierarchy can never set a good example and will not instil confidence in the subordinates Q. Were there exceptions to this trend with new entrants able to join the formal workforce as well? A. Yes. Some employers also saw it as an opportune time to hire given the higher availability of resources reentering the talent pool. So there have been the lateral movements and they continue. It was perhaps also looked at as an opportune time to replace the less productive resources to restructure. Again there are three different streams of engineering candidates for instance basis the college, university, and course they pass out of. An estimated 25 per cent constitute the cream with the rest pooled in a general class. We are focusing on

Q. With this underlying opportunity, what are the skill sets most in demand for these re-entrants to the talent pool? A. Emobility is a hot trend now. So naturally, there is immense scope for candidates with an electrical, electronics or mechatronics background. Also with manufacturers looking to set up a global Centre of Excellence (CoE), there is demand for candidates suited to the research and development exercises at such organisations. Q. Is the automation and digitisation requirement in the value chain also creating opportunities? A. On these fronts, the industry is yet to attain a certain maturity level and is still getting used to the requirements of the new normal. Automation, digitisation, IoT etc constitute nearly 25 per cent of the overall activities today. There is an investment attached to it but everybody is aware that it’s the future. Companies are working seriously on the front for the fear of turning obsolete. Q. Do such trends threaten the blue-collar jobs especially given that they are in favour of lesser manual interventions? A. While it must be looked at from industry to industry, on a case-to-case basis, it is true that blue-collar jobs stand to be impacted on the face of it. However, at this stage, we are not at the same time equipped to assemble 100 per cent electronically. We are yet to enter the robotic era in a big manner. It is still a work in progress. It could impact in the future but not enough to create a ripple effect in the near term. One can negate the impact however by investing in re-skilling. Re-skilling and up-skilling have a major role to play here. It is crucial to scout for people with the right attitude in any organisation. It might not be a bad idea to skill these so that they stay on in the system. www.autocomponentsindia.com

Upfront | Exclusive Q. Your take on the debate of correlating engagement with employee willingness or hesitance to work from the physical office space? A. Loyalty or perceived loyalty is a real thing. At my office, I had to conduct a poll to find out the general sentiment. In favour of or against work for home. I was shocked. 80 per cent of the employees voted in favour of working from office despite a raging pandemic. We had to force employees to work from home because for me life is more important. Yes, our infrastructure, our system, our culture, everything is not 100 per cent ready for it. Not everyone is from the IT sector and so perhaps a 100 per cent blanket approach might not be the best way to go about decision making. There are positives and negatives from either approach. If Covid-19 is going to stay around, we as an industry need to think deeper. While working from home is a good concept, the data has to be relevant to the industry to drive a decision for the foreseeable future. Q. Is there a shift towards turning a gig economy? A. It is all happening but again it appears to be very short-sighted. It is a short term gain and a long-term disaster business. You cannot create a resource with a need-based intention. If that’s the case, the output will be nowhere close to the desired 100 per cent. He or she will come to the office while starting to think about the next gig. If you really weigh the hygiene factor, which includes productivity, performance etc these will take a big hit. You are not writing a success story in my opinion, you are just running a show. Q. At this stage, could you share with us instances where you turned around businesses going beyond meeting the conventional staffing and training requirements of organisations? A. The objective was to give back to society by way of redesigning and redefining a certain model. So, www.autocomponentsindia.com

I proposed a job contract model. Okay, the other was the contract manufacturing model, which is very rare and mostly a trend abroad. It’s also known as the outsourcing model. So I realigned the value chain, for instance, with a clear focus on the three pillars of people process and productivity. There is a school of thought that by outsourcing, quality gets compromised. At one of the commercial vehicle giant, I was able to write a real success story. We did it at Ashok Leyland, at Tata Marcopolo, where we worked out ways to increase productivity with the same manpower. I can proudly say, it improved productivity by more than 40-50 per cent. The idea was to not contract the manpower but contract the output instead.

In the pandemic, the biggest learning outcome was to be self-sufficient over getting into a panic mode. We are still far away from being mature enough to tackle the sudden shift in concepts. Q. You were instrumental in fusing the Korean and Indian culture at Hyundai in your stint as the Vice President. Is there a lesson in there for global companies and their Indian partners looking to collaborate and attain high localisation levels? A. From India perspective, it should be looked at as an opportunity by way of the collaboration in store. It is the concept of building a single unified culture. There are two aspects to it. At Hyundai, for instance, I told the Indians about the Koreans bringing to the table both the financial capital and the technology which in turn created job opportunities. The cultural differences will always remain but both sides needed

to respect the individuality of each culture. So I went about creating a new brand - ‘Hyundai-In’ where everyone would work together. The localisation of culture is equally important in the total scheme of localisation. Again here, I would like to add, it is the foreign players who have globalised in the true sense because we are open to inviting them and continue to work out of our own country. Q. How crucial has the government intervention been over FY2021 with the renewed emphasis on ‘Skill India’ and ‘Make in India’ programmes in terms of creating opportunities? A. I call it the new wave. Companies are breathing this psyche and it is bound to be a success story. For example, the government’s ‘Atma Nirbhar Bharat’ drive requires all of us to be a part of it. In the pandemic, the biggest learning outcome was to be self-sufficient over getting into a panic mode. We are still far away from being mature enough to tackle the sudden shift in concepts. Q. How do you wish to persuade an employer and an employee in the automotive manufacturing and services sector to strategise for the long term? A. We should at first get rid of the barriers created by such a description and distinction between the stakeholders. The stakeholders have to be considered at par with each other to work towards a common goal as one unified team. Mutual respect, appreciation and understanding are more crucial than ever today. ACI Scan the adjacent QR code to watch the full video interview.

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M Earth Energy Game Plan obilised

Mumbai based startup Earth Energy is riding the emobility wave in India. Team ACI highlights the company’s push for localisation as the foundation of its game plan.

umbai-based startup Earth Energy is betting big on localised Electric Vehicles (EVs) for the Indian market. Taking a leaf out of the government’s impetus on ‘Make in India’ and the growing awareness among buyers, the company claims to have attained localisation levels of nearly 96 per cent. It sets the company apart from the competition, says Rushi Shenghani, Founder and Chief Executive Officer at Earth Energy. “To tap the growth potential of localised EVs,” averred Shenghani, “most of the parts that constitute the vehicle be it the drivetrain, the recommendation architecture to the technology put to use are made in-house at a time when the technology did not exist.” Shenghani credits climate change, fuel price hikes, and the tightening emission norms for the growing proliferation of EVs among other factors driving this growth. A testimony to the company moving in tandem with its aspirations was the launch of its electric two-wheeler

auto components india n JUNE 2021

portfolio. The company launched an electric scooter Glyde+, and two electric motorcycles named Evolve R and Evolve Z respectively.

Glyde +

The Earth Energy Glyde+ electric scooter on the first look competes with petrol scooters with its sporty exterior. It is claimed to offer a mix of rider comfort and performance agility. A design inspired by eagles, according to Shenghani, has a lot going for it on the performance front. For starters, it offers Ii-built telematics for live State of Charge (SoC) relay and theft protection. Powered by a 2.4 kW electric motor, claimed to be highly reliable, the drive is mated to an auto-grade belt transmission. The Glyde+ draws power from an in-house manufactured 2.4 KW Li-ion battery that is said to give it a 100 km travel range on a single charge. It develops a power of 3.25 hp and a 26 Nm torque that enables it to reach a maximum speed of 60 kmph. www.autocomponentsindia.com

Mobilised

Evolve Z

The first of the two electric motorcycles, Evolve Z exudes a sporty vibe too. With its form factor inspired by the diamond shape, it compensates for the lack of precious grade stones in its architecture with a performance orientation. The 5.3 kW drive mated to an auto-grade belt transmission develops a power of 7.09 hp and 54 Nm torque. It draws power from a 6.6 kW Li-ion battery and is claimed to go 100 kms on a single charge. The battery pack is claimed to be charged fully in 2.5 hours and 40 minutes at a fast charge station. It can attain a top speed of 95 kmph.

Glyde +

Evolve R

The Evolve R motorcycle is more macho among the two motorcycles. With a design inspired by arrowheads, the motorcycle features a 12 kW drive mated to an auto-grade belt transmission. It helps develop 16.99 hp and a peak torque of 54 Nm. The drive draws its power from an 8.2kW Li-ion battery that allows the bike a travel range of 110 kmph on a single charge. The battery is claimed to be fully charged in 2.5 hours and 40 minutes at a fast charge facility.

Model

Glyde +

Evolve Z

Evolve R

Battery Type

Energy Dense 2.4kW Li-ion Battery

Energy Dense 6.6kW Li-ion Battery

Energy Dense 8.2kW Li-ion Battery

Torque

26 Nm

54 Nm

56 Nm

Power

3.21 bhp

7 bhp

16.76 bhp

Transmisison

2.2kW drive with auto grade belt transmission

5.3kW drive with auto grade belt transmission.

12kW drive with auto grade belt transmission

Top Speed

60 kmph

95 kmph

110 kmph

Price

Rs.92,000

Rs.1.30 Lakh

Rs.1.42 Lakh

Warranty

1,20,000 kms / 3.5 years with two years extended warranty

1,20,000kms / 3.5 years with two years extended warranty

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Feature-packed and scaleable

All three EVs feature an LCD cluster designed to enable crisp day and night visibility. It relays crucial information like the battery SoC, real-time range and turnabout time navigation. To enhance the ownership experience, the EVs are sold with a complimentary charger claimed to be easy to set up. The entire range will be made available in a common colour range including marshal grey, jet black and white options. Mentioned Shenghani, that the company started with an initial production capacity of 12,000 units per annum. It plans to scale up further by moving to a bigger facility on the outskirts with an increased capacity of 64,000 units in comparison. The company has established a 7000 sq. ft. research and development setup at Vasai, in Mumbai. Claimed Shenghani, the company was able to build multiple prototypes as a result and test them for around six lakh kilometres to justify the proof of concept since inception in 2017. He also lauded the efforts of the dynamics and mechanical team for the end outcome of the finished products. On the aftersales front, the company is claimed to have mapped 45 dealerships expected to be operational by the end JUNE 2021 n auto components india

IN D IA obilised

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of the year. “We already have around seven odd dealerships to cater to the initial demand,” stated Shenghani. The Now read your favourite magazine wherever No IA.IN company is also looking to tie up with WWW.BIKEIND 1 ecommerce Available onE 202PC... Mac... Tablet... or any other handheldcompanies device! for inclusion Availa JUN ISSUE 11 VOLUME 16 in their fleet besides being available 1 1 111 E for integration via the use of thirdUSIV EXCL T S R I party applications. “So third party F DWWEW.BIKEINDIA.IN R1I1111 integration 1 202 E JUN is back! is already available heavily, ISSUE 11 VOLUME 16 The legend`and we areATU working very hard on 100 RE FE FA R! 11 GA ZIN E, BY 111 the we can make these EE LE R MA s ofthat this brand arso VE Ye I 20 1 TW O WH . S NO U A’S IN DI EXCL a NSR500 for B2B on an urgent Hond ST vehicles available FIRD trada V4 tis E ul Ducati Mhe explained. basis,” Besides electric R1I1111 e Arctic Circle th ! to ck ba two-wheelers, the company also The legend is Now read your favouritevehicles magazine FEATUREe produces commercial for wherever the 20 Years of th 00 R5 NS domestic market and isTablet... claimed toorbeany other ha Honda Available on PC... Mac... SUZUKI work on autonomous vehicles for its Multistrada V4 E USIVDucati le rc EXCL Ci ic ct T Ar e S FIRDE to th global clientele. In 2020, the company RI t 660 ck! en id Tr ph m to have raised a seed round The legend is ba is known xxiu FEATURE rs of theled by LR Joshi, Managing 20 Yea fund 0 R50 NS Honda ltistrada V4 of Pranada Biopharma Ducati MuDirector cle to the Arctic Cir ` 100 among other private equity investors BY FA R! MA GA ZIN E, WH EE LE R O TW 1 . IN DI A’S NO the launch of its upcoming to facilitate vehicles. It has also been part of port t 660 the SmartCity Dubai Accelerator xxiumph Triden Compact supers n Programme, 2018. ACI Rushi Shenghani, Founder and Chief Executive Officer at Earth Energy ’s massive fu that M AG AZ IN E, W H EE LE R

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over Story

Drivetrains For Real Demand Automotive manufacturers are tapping into the mix of next-generation technological developments with localisation for vehicular platform consolidation. Ashish Bhatia looks at this strategy to manufacture drivetrains for the real demand.

ehicular platform consolidation is a well known global practice aimed at reducing manufacturing and platform up-gradation complexity. It is also a way to reduce any redundancies that may exist. However, the practice continues to evolve with rigour and in some cases appears near perfected. From just underpinning one chassis to multiple bodies that lacked much flexibility, the approach today is far more flexible with mind-boggling permutations and combinations made possible by advanced engineering. It has made room for customisation to attain a whole new level as the ecosystem aligns itself with the evolving customer demands across segments. The core constituents of a platform which includes the drivetrain, chassis, steering and other

auto components india n june 2021

components can today be shared between different vehicles in a modular approach. The vehicles are no longer required to be of the same size to be able to do so. Original Equipment Manufacturers are taking along tier suppliers key to the new-age product development. After all the modular platforms share most components leading to higher efficiencies in the supply chain and presenting better chances of realising the desired economies of scale. Together, they are actively scouting for newer ways of tapping into this expansive mix of next-generation technological developments at their disposal. Localising it to meet the different demographic needs including different energy sources to meet the law of the land is the other layer that they are working on. The strategy is to manufacturer

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Cover Story

drivetrains for the real demand. This aspiration also means that the big guns are more open to collaborating with the emerging tech companies, automotive or non-automotive. The effort also extends to looking at modular platforms for the growing market of emobility, believed to be a well thought off investment. One that is both sustainable and makes for a profitable business case. Add to it, companies are also accelerating the go-to-market approach with shorter New Product Development (NPD) cycles known to lead this accelerated effort. From conceptualisation to commercialisation including assessing the feasibility of plug and play models.

New Product Development

‘Heartect’ is Maruti Suzuki’s newgeneration platform claimed to have been designed with a core focus on safety. It is known to have been built with advanced and high tensile steels and is said to feature a smooth continuous design for better impact absorption in case of a collision. It also offers better stability and control for enhanced driving performance and fuel efficiency. It underpins the SPresso, S-Cross, Wagon R, Ignis, Swift, Baleno, Dzire, Ertiga and the XL6. As part of www.autocomponentsindia.com

the global new product development strategy - ‘Reimagine’, Jaguar Land Rover (JLR), for instance, will use the flex Modular Longitudinal Architecture (MLA). On the one hand, it will deliver electrified Internal Combustion Engines (ICE) and fully electric variants, on the other hand, it will use the pure electric biased Electric Modular Architecture (EMA) to support advanced electrified ICE. Aimed at attaining simplification at several levels, by consolidating the number of platforms and models being produced per plant, the company is looking to establish new benchmark standards in efficiency, scale and quality, in its case for the luxury segment. This approach is also expected to help rationalise sourcing and accelerate investments in local circular economy supply chains. It is also expected to curate a closer collaboration and knowledge-sharing with Tata Group companies with a common goal of enhancing sustainability and reducing emissions besides the objective of sharing best practices in next-generation technology, data and software development leadership. JLR is banking on “frictionless” access compared to companies solely relying on external partnerships.

Groupe PSA is focusing on building its models on two platforms, the Common Modular Platform (CMP) besides the Efficient Modular Platform 2 (EMP2), allowing for an integration of the powertrains in its line-up spread across power sources. It is claimed to allow the Group’s plants to produce internal combustion, hybrid or electric vehicles on a single production line, depending on the demand. The new Efficient Modular Platform by PSA Peugeot Citroen is claimed to combine a diversified product range. If a fixed front end signifies standardisation, the diversity of plug and play modules are well highlighted by the short or long rear end, high or low driving position, multilink rear end or a flexible transverse beam, and powertrain. The company is claimed to have shaved off an estimated 70 kilograms through the use of innovative steel composites and aluminium. It is also claimed to have deployed advanced assembly processes and downsized modules. A 22 per cent carbon reduction has been achieved through fully redesigned aerodynamics, flat floor and the managed air inlet. Efficient technology improvements are known to have been realised in resistance to friction, selective catalytic reduction, electric power steering and auto components india n june 2021

over Story stop and start. CMP was launched in 2019. It covers the manufacture of all small city cars (segment B), entry-level and mid-range saloons (segment C) apart from the compact SUVs. It is also known to be available as of 2019 in an electric variant - eCMP. EMP2, a 2013 launch in the European market and 2014 launch in China market, known to cover compact and premium models (saloons, coupés, leisure activity vehicles, SUVs and light commercial vehicles) has in addition to the ICE variants made it possible for the company to produce new plug-in hybrid models. In February 2020, Skoda Auto India introduced the ‘Skoda Vision IN’ under which it showcased the first model built on the Modular Transverse Matrix (MQB)-AO-IN modular platform aimed at building cars with conventional engines. Claimed to have been developed specifically for the Indian market it formed the underpinnings of the 2021 Skoda Kushaq. The company had previously also introduced the Skoda Enyaq iV, the first car based on the Volkswagen Group’s Modular Electric Drive Matrix (MEB). The company in its annual report has admitted to the increase in the volume of production and number of versions of its models going hand in hand with the demands for the expansion and modernisation of production. As a testament to the same being handled efficiently and without downtime, the parent plant Mlada Boleslav was able to parallelly produce the stream of vehicles based on the two

auto components india n june 2021

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Cover Story

platforms aforementioned. Skoda Auto in a remarkable feat manufactured the three-millionth EA211 engine in June 2020 and the thirteenth-millionth current generation gearbox at the plant in August. In other recent developments, Kia India is reportedly preparing for the launch of seven new EVs. The new EVs are expected to be built on Hyundai Motor Group’s new electric Global Modular Platform (eGMP). It is expected to bear multiple offsprings across segments with offerings including long-range and high-speed charging capability owing to the new platform. The modular EV-only

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platform will produce 23 batteryelectric vehicles by 2025. Great Wall Motors last year announced two new modular platforms. Codenamed ‘Smart Coffee’, it encompasses autonomous driving systems, electrical systems and smart cabins compatible with ethernet, 5G and Vehicle to everything (V2E) technology. The investments towards the two platforms underwork since 2015 are reportedly expected to form the basis of the new model development. The first platform, codenamed ‘Lemon’ is expected to be used for a subcompact to full-size model across a range of power sources. The second codenamed

‘Tank’ aimed at off-road vehicles is known to accommodate two to threelitre turbocharged engines. According to a Frost & Sullivan report, while the initial investment required to develop a dedicated, scalable platform is significantly high, the excessive flexibility on offer is projected to offset the investment through economies of scale. According to Kamalesh Mohanarangam, Program Manager, Mobility Practice at Frost & Sullivan, manufacturers can look to overcome the challenges associated with Connected, Autonomous, Shared and Electric (CASE) mobility with this approach. It allows them to offer several models without significant investments. Here, suppliers, are required to ensure that failoperational functionalities are built into the system to develop and offer products that address such an evolving hardware architecture and the software consolidation process. As the industry shifts towards CASE convergence, the study expects Return on Investment (RoI) to be realised only towards the end of the decade. The need of the hour is to also build end-to-end software platforms that are both scalable and modular. ACI

auto components india n june 2021

pecial Reads

auto components india n june 2021

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Special Reads

Downstream Aluminium: Meeting The EV Demand R.K Jain, Sr. Vice President – Commercial at Jindal Aluminium Limited in this article writes about meeting the EV demand through innovative production.

olicy incentives and technological advancements are going to guide the manufacturing and adoption of Electric Vehicles (EVs) in a big way, as India witnesses a sea-change in its attitude towards the segment. Electrified and efficient are words often used to describe the future of the automotive sector, which is also set to push the demand for aluminium exponentially. Innovation in products will continue to remain the focal point of the downstream aluminium sector.

A bright spot

EVs are a bright spot in the Indian automotive segment. They are a key element of the transition to cleaner energy. The Government of India data released earlier in Parliament has a promising story to tell. India saw 69,012 units of electric vehicles being sold in 2017-18. It scaled up to 1,43,358 units in 2018-19 and to 1,67,041 units in 2019-20. The growth in units includes sales of twowheelers, three-wheelers and buses. Two-wheelers have led this growth. With the government setting its eyes on selling only electric cars in India after 2030, the sector is poised for the biggest renewable energy revolution the country has seen.

Making it drive

Aluminium is making the EV story successful. Used both in the manufacture of EVs and also in creating the necessary charging infrastructure. A higher performance metal, the push for EVs is adding importance to the role that this

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light and sturdy metal will play as it brightens prospects for the downstream aluminium segment as a whole. From addressing the challenge of helping vehicle manufacturers in the light-weighting of vehicles to improving the efficiency of conventional vehicles. In the case of EVs, it is a significant range extender. No matter the objective, aluminium extrusions are increasingly becoming a key part of the new-age solutions.

Customisation in production

The shift to electric vehicles is no longer just an option; it is a must. India, China, many European countries, and the United States have all already decided in favour of emobility supported by research and development programs, charging infrastructure, and buyer incentives. This is an opportune moment for the downstream aluminium sector – which is an old partner of the automobile industry and finds its use in the making of the vehicle body, doors, trunks, hoods, bumpers, crash boxes, brakes, cables, wheels, etc. – to increase its overall usage. However, bringing about innovation in production is the need of the hour for the Indian downstream aluminium manufacturers if we want to meet the EV demand. Innovation in production is also crucial to raise the average quantity of aluminium used per vehicle from India’s average of 29 kg up to the global average of 160 kg or 250 kg as is projected for use in EVs in the times to come.

june 2021 n auto components india

pecial Reads

Economies of scale

Automobiles, whose bodies are made of aluminium are costlier than their other metal counterparts. This poses as one of the major obstacles to Aluminium’s market appeal in India. This will be addressed once the demand for EVs picks up and costs are lowered. As consumers get environmentally conscious and the government introduces policies that require vehicles to bring out more fuelefficient variants going forward, expect the downstream aluminium sector to play an important role in the areas of fuel-saving, cutting carbon emission, costs, including repairs.

Time to innovate

Innovation is needed and is already being witnessed at various levels. For instance, in meeting the EV demand, the automobile industry is looking at major changes in vehicle manufacture with a focus on improved

auto components india n june 2021

combustion, calibration, injection, and cylinder pressure. Downstream aluminium suppliers are meeting the needs through extrusions and rolling by using next-generation technology and innovation. The new applications of downstream aluminium include lightweight battery casings and heat exchangers, besides overall structural integration. Offering a higher strengthto-weight ratio compared to other metals, the ability to absorb a larger amount of crash energy, and to ensure that vehicular performance enhancements do not come at the cost of safety is what the downstream aluminium offers to the automobile industry, especially in meeting the EV demand. All this, and the ease with which aluminium fits into creating simple and intricate shapes giving an elegant finish to the vehicle, make it an automaker’s dream metal. Thus, not only will this

innovation in material supplied lead to light-weighting, lower costs, and meeting the commitments of going green, it will, through EVs, now offer a higher perunit usage of downstream aluminium products in automobiles. ACI --------------------------------------------Jindal Aluminium Limited (JAL) is India’s largest aluminium extrusion company with a legacy spanning over 50 years. The company’s core business is the manufacturing of aluminium extrusions and aluminium flat-rolled products. With INR 30 Billion (USD 435 mn) turnover and with a production of above 1.25 lakh tonne in FY 2018-19, JAL is the leader in aluminium extrusions and is one of the leading companies in aluminium flat-rolled products in India.. --------------------------------------------The opinions expressed within the content are solely the author’s and do not necessarily reflect the opinions of ACI Magazine. www.autocomponentsindia.com

usiness Filing

Saietta Group Partners Padmini VNA Saietta Group inked a significant partnership with Padmini VNA Mechatronics. Team ACI looks at the contours of the agreement aimed at India’s electric two-wheeler segment.

aietta Group and Padmini VNA Mechatronics Pvt. Ltd. announced a partnership in significant agreement. The Oxfordshire, England based Saietta Group, specialises in the Axial Flux Technology (AFT) based electric motors and will collaborate with partner and tier1 supplier Padmini VNA to tap the “new and exciting opportunities” identified in India’s growing electric two-wheeler segment. Stated Wicher Kist, Chief Executive Officer at Saietta Group, “We are thrilled to be partnering with Padmini as we introduce our AFT motor technology to the strategically important Indian market.” Kist shared that the company was introduced to Padmini VNA first by the UK Government’s

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Department of International Trade and since then there has been no looking back with the partnership growing from strength to strength. Of the opinion that the Indian two, three and four-wheeler mobility market is at an important crossroads, Kist calls it an opportune time to democratise the zero-emissions mobility in India, case-in-point being the popular form of mobility - motorbikes and scooters.

The market opportunity

Claimed to be high-tech and cost-effective, AFT motors offer a low-voltage performance alternative and boast of durable and robust build characteristics. The two partners believe, JUNE 2021 n auto components india

usiness Filing

it will further accelerate the adoption of emobility in India. Mentioned Kabir Bhandari, Managing Director and Founder of Padmini VNA Mechatronics Pvt. Ltd., “We are super excited to bring our engineering and manufacturing capabilities and with the Saietta’s AFT motors we intend to develop an affordable and scalable ecosystem that will accelerate the adoption of electric mobility.” Padmini VNA Mechatronics is well known for its emission reduction mechatronics deployed in passenger cars, commercial vehicles, two-wheeler, and tractor segments. With over 100 patents in its name, the company also exports to OEMs across Europe, Asia, North America, and South America. Notably, the target segment for the partnership at pre-Covid levels is known to have accounted for a little over 21 million units sold in 2019. The company cited analysts predicting a positive growth

Realworld Efficiency Test

In a real-world efficiency test, Saietta Group put the AFT 140 electric motor to test in a bid to prove the range enhancing capability in lightweight EVs. Overseen and led by independent Dutch engineering consultancy New Electric, the test had two Renault Twizy demonstrator vehicles go head-to-head in a comparison assessment on public roads in Amsterdam, Netherlands. The first being a standard Renault model while the second known to have been upgraded to the Saietta AFT 140 electric motor with the rest of the systems and components left unchanged. Conducted over two days in varying weather, temperature and traffic conditions including on varying road surfaces, the Saietta AFT 140 Twizy and standard Renault Twizy model were fitted with a laptop that processed data from the Sevcon controller interface through a CAN-bus connection. It provided performance data coupled to a time and date of testing ‘stamp’ for use later to

auto components india n JUNE 2021

roadmap over the next five years to make a case for the partnership. The partners also credit the Indian government’s

synchronise and independently verify the results. The tests also validated the performance of the AFT 140 at low speeds and in constant stop/ start conditions. It is also said to have proved the efficiency in converting kinetic energy back into the battery pack during braking. Claimed Anne Kloppenborg, Director at New Electric, “We

impetus on clean mobility solutions, especially in the urban metros. It is driven by the high-fuel (petrol) consumption

closely assessed the two Twizy EVs and, having completed the program, it’s very easy for me to conclude that the Saietta AFT 140 motor is a stellar piece of technology.” The engineering team concluded that the Saietta AFT 140 Twizy demonstrated at least 10 per cent increased efficiency gain on an average over the standard Renault Twizy.

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Mission Development And Business Continuity At the maiden virtual edition and the 5th edition of ACMA Automechanika, the stakeholders of the automotive industry shifted gears. Ashish Bhatia highlights this resolute focus on the development and continuity of business.

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irtual fairs continue to bridge the gap between online and offline. At the maiden virtual edition and the fifth edition of Automechanika, organisers Automotive Component Manufacturers Association of India (ACMA) together with Messe Frankfurt India, in the softwaredriven forum made this abundantly

clear. The summit, on a two-day tight schedule, ran in clockwise precision for the most part and deserves credit for concluding a successful edition. The interactive nature and abundant product demos made it all the more engaging taking it a step closer to the physical expos, a defacto phenomenon of the prewww.autocomponentsindia.com

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covid era. Aimed at imparting special insights on imminent opportunities and challenges in the Indian auto aftermarket segment, it also made way for new product launches and demonstrations. Nearly 2,407 stakeholders of the industry were in attendance courtesy of the Business to Business (B2B) matchmaking platform. Apart from domestic attendees, the platform also succeeded at drawing participation from 49 countries including Belgium, Canada, Denmark, France, Japan, Germany, UAE, UK, USA, Saudi Arabia, Sweden and Russia. A total of 81 exhibitors supported the summit and fair with over 1200 components queued up for an on-demand experience. Schaeffler India, eBay, www.autocomponentsindia.com

ITW, Ajit Industries, Benara Udyog, Elofic, Steel Impex, KK Lighting, Industrias Del Recambio, Farad Italy, Indo-MIM Pvt.Ltd., and Esteem Auto Pvt. Ltd. were among the leading exhibitors.

The aftermarket potential

Addressing the attendees, Deepak Jain, President at ACMA set the tone of the proceedings with an overview of the automotive aftermarket performance for the last fiscal. In his opening comments, averred Jain, “The aftermarket in India is perhaps the most vibrant, unique and fastestgrowing segment of our industry.” He drew attention to the industry valuation in FY2020 at USD 10

billion with a CAGR of 12 per cent while the overall turnover of the auto component industry in India stood at USD 50 billion with a CAGR of eight per cent. “In the last year which was the most challenging year due to the outbreak of the pandemic, all segments, be it supplies to the Original Equipment Manufacturer (OEMs) or exports or the imports suffered badly,” he exclaimed. “However, the aftermarket remained stable. This reflects the undying spirit of the aftermarket and its very strong potential,” Jain expressed. Exports for FY2020 were valued at USD 14.5 billion of which 20 per cent is credited to the aftermarket. ACMA, as per Jain, through joint participation of its members in several international exhibitions, is making an effort to enhance the aftermarket share in exports of the overall India auto components exports. “ACMA together with SIAM is working closely towards deep localisation expected to further increase the price competitiveness of the industry,” he said. Speaking on the Production Linked Incentive (PLI) scheme, opined Jain while enhancing export competitiveness is aimed at incentivising the domestic industry. He drew attention to the approximate USD 7.5 billion (Rs.57,000 crore) outlay as auguring well for the aftermarket and the industry as a whole. He cited the global example of aftermarket opportunity being as significant as the OEM opportunity. He expressed confidence in the industry bouncing back stronger in the aftermath of the pandemic. Citing the growth potential, he drew attention to the year of standout stability and resilience on show, especially by the aftermarket players. Vinnie Mehta, Director General, ACMA together with the President thanked the industry for its wholehearted participation despite it being difficult times. Though sombre, the start was packed with optimism for better times in store. JUNE 2021 n auto components india

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Dual clutch transmission comfort and control on the road In a technical session by Schaeffler India, the company gave a demo of the ‘Dual Clutch Transmission comfort and control on the road’. The demo entailed removing and or installation of a seven-speed double-clutch gearbox OAM, Audi, Seat, Skoda and Volkswagen. The working steps shown were meant to be carried out in conjunction with LuK RepSet 2CT item no 602 001 00 or 602 0002 00, and using the LuK special tool item no 400 0240 10. It covered the unique repair solution for dry and wet double clutches, including all necessary replacement

Innovative business models powered by digitisation

Frost & Sullivan, in a discussion brought out next-gen digital business models to aid the growth of the automotive aftermarket industry

auto components india n JUNE 2021

parts. Claimed to have developed appropriate repair solutions and service offers at an early stage, the LuK RepSet 2CT and the corresponding special tool, is aimed at enabling garages to repair double clutches quickly and professionally. OE quality and perfectly coordinated, and a safe mounting due to simple installation instructions are claimed to be among the advantages.

worldwide. Citing a study, averred Kaushik Madhavan, Vice President, Frost & Sullivan, “Global ecommerce is expected to exceed USD 78 billion in 2026. In the automotive aftermarket segment particularly, tyres, lubricants and performance parts may offer the most growth potential in near future

with expectation of increased bundled purchases.” He opined that an increased customer exposure to digital channels across different lifestyle aspects is expected to push the aftermarket stakeholders to aggressively invest in digitisation beyond just parts retail and even workshop services in the coming period. Madhavan went on to elaborate further upon the emerging business models targeting pricing, convenience and customer acquisition. For instance, in ‘Private Labelling’, selling self-branded replacement parts and accessories online is a space to watch out. It involves front-runners like Amazon Basics and Delticom (Tirendo). In the ‘Online to Offline Integration’, the partnership between offline store, or establishing the offline presence to drive brand recognition and presence is also on the cards with front runners like Oscaro and Piecesetpenus. com. ‘In-vehicles’ systems will be leveraged to offer retail applications including parts and servicing. ‘Dowww.autocomponentsindia.com

Trending Enabling seamless retail e-commerce export Covid-19 is known to have accelerated the adoption of digital technologies and evolved customer demands across the globe. The session emphasised the export potential of exports using the eBay Auto Velocity platform. The ecommerce giant, cited Sumit Sharma of Team eBay, in Australia, sells three parts or accessories every five seconds and 15 bike parts every minute. In the UK, it is claimed to sell nine complete engines every hour and nearly eight ATV parts or acc. Every minute. In the US, it is claimed to close a car or truck part every six seconds and one air intake unit every 90 seconds. Claimed to have registered a 100 per cent YoY growth last year, it is aimed at the purpose of empowering people and creating economic opportunity for all. The product is designed to enable listing and sales of products with due OEM authorisation across 190 markets, and in a manner that the company is claimed to never compete with its seller base. With 60 per

Centrifugal clutch assembly Makino Centrifugal Clutch Assembly (CCA) by Makino Automotive is a clutch system claim to have been designed to minimise vibration with proper balancing. It is claimed to eliminate the risk of having a loose part assembly. Aimed at overcoming the conventional and time-consuming methodology of replacing a two-wheeler clutch, the CCA comes offers many advantages. Besides eliminating vibration, it facilitates a closed assembly that needs minimal or no inspection. It is pre-balanced and saves on installation time. it-for-me’ Customer Target entails providing the customers with the option to deliver replacement parts and accessories at the workshop of choice. Subscription-based services www.autocomponentsindia.com

cent of international revenue contribution and an estimated USD 26.6 billion Gross Merchandise Value (GMV) for Q42020, claimed Sharma, nearly 2000 Indian resellers of the aftermarket were trading on the platform already with close to 10 million products.

of aftermarket products, especially the consumables for workshops and tyres for vehicle owners on the lines of front-runners like Amazon and Zenesis. Last but not the least, selling service as a product, for instance, tyre change, engine oil change and so forth are expected to be sold as products online. Neeraj Vani, Vice President, GoMechanic. New Business Models in e-retailing touched upon the changing people’s mindsets too. “They are coming to us instead of OEMs now,” he claimed. Vani attributed the change to the aftermarket offering an experience at par with the OEM including the pricing factor and the spare parts supply. Ramashankar Pandey, Managing Director, Hella India Lighting and Chairman, Aftermarket Committee, ACMA, said, “For the benefit of the consumer, we should push for a free aftermarket so that digitisation will speed it up.” “When you put the consumer at the centre of your equation, you automatically align the way the ecosystem functions to that. As a marketplace, for us, it is essential to make sure that both the buyer and the seller get the best ability to interact and make choices,” added Pavan Ponnappa, Director, eBay.

Prashant Gupta, Country Head Sales, Shriram Veritech Solutions Pvt. Ltd. advocated the need of a digital track and trace solution for the benefit of the automotive industry. “We have an organised sector with our supply chain and it needs protection - this will help address non-standard product issues,” he concluded. ACMA Automechanika looks forward to hosting a physical trade fair, scheduled between February 09-12, 2023 at Pragati Maidan, in New Delhi. ACI JUNE 2021 n auto components india

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Auto Technology Partnership Summit and Expo 2021 At the ACMA Auto Technology Partnership Summit and Expo 2021, the focus was on harnessing the Indian automotive opportunity. Team ACI gets you the key insights from the three-day virtual congress.

auto components india n JUNE 2021

he Automotive Component Manufacturers Association of India (ACMA) concluded a successful edition of the Auto Technology Partnership Summit and Expo 2021. Aimed at harnessing the Indian automotive opportunity, the three-day virtual congress held earlier this year witnessed participation from ACMA counterparts in Japan, Europe and North America. A series of sessions had the stakeholders highlight investment

avenues and opportunities in the Indin market. Supported by the Ministry of Commerce, Government of India, the Society of Indian Automotive Manufacturers (SIAM) and Automotive Industry Associations from Canada, USA, UK, Germany and Japan to name a few, there were several key takeaways. Speaking on the sidelines of the ‘Europe Day’, Anjali Singh, Executive Chairperson of ANAND Group India gave a backdrop of the Indian www.autocomponentsindia.com

Trending automotive industry emerging stronger after bracing an unprecedented set of disruptions in the first half of the fiscal year 2021. “The industry through agility flexibility and financial discipline registered a turnover of USD 50 billion. Exports accounted for USD 14. 5 billion in the FY2020 registering at a Compounded Average Growth Rate (CAGR) of eight per cent over the last six years. Mukta Dutta Tomar, Ambassador of India to the Federal Republic of Germany cited the scale of the automotive industry as the largest industry sector in Germany with a 20 per cent contribution to the total industry run.

Leverage strengths

Responsible for supporting German companies to set up in foreign countries, German Trade and Investment (GTAI), in a statistic, valued automotive exports at over 13 per cent of the overall exports pie in 2019. Automotive exports account for the largest share of exports. Known to account for one-third of the global R&D expenditure, Germany as per a German Association of the Automotive Industry (VDA) study, exports expanded in April 2021, with 252,000 passenger cars (+1011 per cent) exported. On a year-to-date basis, 968,500 passenger cars (21 per cent) were sold worldwide. Even though the shortages in the supply of semiconductors are known to be holding back a greater degree of production, in better times, the German automotive sector earns an estimated USD 150 billion as per Ambassador Tomar. “It is essential that Indian manufacturers recognise their strength and prepare themselves to meet the more stringent requirements of the future,” she remarked. Referring to the intergovernmental consultations co-chaired by Prime Minister Narendra Modi and Chancellor Angela Merkel in November 2019, she drew attention to the opportunities waiting to be tapped in emobility, Industry 4.0, Artificial Intelligence (AI) and digitisation deemed crucial to the www.autocomponentsindia.com

bilateral cooperation between the two nations. Of the opinion that the necessary stimulus from government policies has been received, Tomar made a case for the impetus laid on promoting ‘Make in India’ among Anjali Singh, Mukta Dutta Tomar, others interventions. Executive Chairperson of Ambassador of India to the ANAND Group India Federal Republic of Germany For instance, the Performance Linked Incentives (PLI) scheme has been expanded to include priority sectors like Advanced Chemistry Cell (ACC) at an Rs.18,000 crore outlay, expected to draw an investment of Rs.18,100 crore besides electronics Arun Goel, Secretary, among 10 sectors Anandi Iyer, Department of on the whole. Director, Fraunhofer Heavy Industry and Gesellschaft, India Office Public Enterprises, “These policies Government of India complement the existing schemes, like the FAME II outlay for reducing the acquisition cost of electric vehicles,” she mentioned. Backing Ambassador Tomar on the Government of India willingness to support the automotive Mike Hawes, industry, Arun Dr Christian Foltz, Chief Executive Officer the Partner, PwC at the Society of Goel, Secretary, Strategy & Germany Motor Manufacturers Department of and Traders Heavy Industry and Public Enterprises, Government of GDP, India’s automobile sectors offers India, made a case for the automotive employment to the tune of 37 million. industry getting the attention it deserves. It accounts for nearly two per cent of “Contributing seven per cent of the India’s exports,” he expressed. “Auto seven per cent to the GDP and making components alone contribute 2.3 up 49 per cent of the manufacturing per cent to India’s GDP, employing JUNE 2021 n auto components india

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Didier Sepulche de Condé, Vice-President, FIEV

Sachin Kulkarni, Co-Chairman- Sourcing Group, SIAM and Head Purchase Production Materials, Skoda Auto

For representation purpose only

an estimated five million people,” he added. Goel expressed concern over the shallow penetration of India given the rate of ownership pegged at 28 vehicles per 1000. “It highlights a high growth opportunity,” he quipped. Speaking on electric vehicles, Goel opined it was just the beginning. “The Government of India is pushing it through various schemes. Recently in the budget, the Indian government announced a PLI scheme for the sector with a total outlay of Rs.57,042 crore. For instance, electronics under the scheme has been allocated Rs.5000 crore,” said Goel. Lauding the industry for its

auto components india n JUNE 2021

Julian Jix, Project Lead, The German Indian Startup Exchange Program (GINSEP)

high level of indigenisation, he urged the industry to prepare for emerging challenges and called for wide-scale upgradation to adhere to global best practices. He assured the industry extended support in terms of the government encouraging R&D within the country and supporting the industry with multiple Centre of Excellence (CoE) to support automotive clusters.

Looking out for opportunities

To make a case for India as the world’s ‘China + 1’ strategy if not a 100 per cent alternative and for India to live up

Taranjit Singh Sandhu, Ambassador of India to the US

to its potential of a large, segmented and attractive OEM destination, Anandi Iyer, Director, Fraunhofer Gesellschaft, India Office, called upon the industry to shape up a cohesive and symbiotic relationship between suppliers and OEMs. Lauding India’s supply chain capabilities and quality as world-class, Iyer gave the example of several of India’s small and medium enterprises having won the Deming as a testimony. She also spoke of the need to build an innovation cluster similar to the ones in over 28 sectors, in Germany and in many parts of the world, including China, Indonesia, Japan, and Korea. Iyer cited how the entire value chain needs to closely cooperate to accelerate the go-tomarket strategy. “This is a wonderful instrument that has proven to shave off four to six years in the deployment of technologies, purely because you take a technology readiness of three to four and bring it to a technology readiness of eight to nine on a scale of 10 in the shortest period of time by working towards a shared objective,” she opined. Dr Christian Foltz, the Partner, PwC Strategy & Germany credited India for keeping pace with the global automotive trends on electrification and effective connectivity. “India is amongst the five largest global auto manufacturing nations and the largest tractor manufacturer in the world,” he exclaimed. “The Indian automotive industry has shown robust growth over the last 10 years. But so far, www.autocomponentsindia.com

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Dr Laxmi Venu, Lead ATPSE Core Committee, ACMA and Joint Managing Director at Sundaram Clayton

Dr Wilfred Aulbur, Sr. Partner, Roland Berger

I feel that India has strongly focussed on its own market. It is now time to look out for opportunities. The four major blocks that need to be addressed are supply chain and logistics, managing workforce and productivity, working capital and customer demand,” he explained. He advocated the need for working towards attaining flexible sourcing or localisation mechanisms, for instance, localisation of key modules and electronic assemblies. He also called upon the stakeholders to build in-house software capabilities and make way for investments on the same lines. Dr Folts, however, admitted to nations the world over including India needing time until 2022-23 to overcome the Covid-19 induced disruptions before getting on with the accelerated approach. Mike Hawes, Chief Executive Officer at the Society of Motor Manufacturers and Traders touched upon the opportunities for the Indian automotive industry in the United Kingdom postBrexit. “There is a great relationship between the UK and India and we must build on that. Our collective automotive trade between both countries is valued at approximately GBP 217 million,” he stated. Drawing attention to the UK automotive industry’s large scale of operations that have made it the second-largest new car market and the fourth largest automobile manufacturer in Europe, Hawes gave the example of diverse and large transnationals investing in production. He also presented a funding landscape to the attendees www.autocomponentsindia.com

Kaushik Bhupendra, Associate Director, Procurement/Head of Global Sourcing, Navistar Inc

demonstrating the automotive R&D ecosystem and cross-sector use of technology coming together as a whole that the country could model on. Didier Sepulche de Condé, Vice-President, FIEV spoke of the India connect. “A lot of French companies are active in India and manufacturing there. The French industry has been working with India for a very long time and I believe we will have many new opportunities to support Indian suppliers,” he mentioned. Sachin Kulkarni, Co-Chairman - Sourcing Group, SIAM and Head Purchase Production Materials, Skoda Auto allayed fears of a slowdown in the pace at which the industry was growing. “The world is going through the now profound transformation, especially in terms of sustainable urbanisation and then digitalisation. Things are going to change and probably India will emerge as one of the biggest markets for export,” he opined. Julian Jix, Project Lead, The German Indian Startup Exchange Program (GINSEP) cited the potential of startups as a representative of the platform said to be the connecting link between startups from both nations looking to explore each other’s respective markets. Mobility happens to be an organic focus here, he exclaimed. Taranjit Singh Sandhu, Ambassador of India to the US spoke of the opportunity at hand with the US looking to shift to reliable supply chains. He urged the Indian automotive industry to identify components,

Paul T. McCarthy, President & COO, AASA

especially one’s where companies believe they have a competitive edge. Dr Laxmi Venu, Lead ATPSE Core Committee, ACMA and Joint Managing Director at Sundaram Clayton committed to scaling electric mobility in India at a faster pace and expressed willingness to partner with companies from the United States to realise the full potential. Dr Wilfred Aulbur, Sr. Partner, Roland Berger lauded the Indian companies for turning into a successful business. Especially ones that combined Japanese and Western processes and qualities with Indian ingenuity. Kaushik Bhupendra, Associate Director, Procurement/Head of Global Sourcing, Navistar Inc lauded the progress made by Indian companies on the quality front. He, however, touched upon the need to invest in technology pertaining to Industry 4.0 if the companies referred were to realise the full growth potential.

Aftermarket sourcing

Paul T. McCarthy, President & COO, AASA shed light on the future of aftermarket sourcing. He urged companies to prepare for a complex multi-country aftermarket production base. He also urged them to look beyond just contract manufacturing to shape up new partnerships and joint ventures. In the entire equation, McCarthy also highlighted the role of tier2 and tier3 companies terming their roles crucial for the country’s competitiveness. ACI JUNE 2021 n auto components india

I Modular Electric Vehicles nternational

REE Automotive has signed a strategic collaboration agreement with Magna International. Team ACI looks at the strategy aimed at introducing modular electric vehicles in the market.

EE Automotive Ltd. (REE), known for e-mobility innovations recently announced a strategic collaboration agreement with Magna International Inc., a mobility technology company. The collaboration is aimed at bringing to the market innovative, full-fledged Modular Electric Vehicles (MEVs) for the universe of technology companies and new emobility players under the ‘Powered by REE’ brand. The strategic collaboration is known to explore the combination of REE’s promising REEcornerTM technology with Magna’s vehicle systems integration expertise and state-of-theart manufacturing capabilities. It aspires to develop MEVs that enable commercial customers to customise vehicles based on their required specifications and with complete branding with an accelerated time to market. As mentioned by Daniel Barel, REE Co-Founder and Chief Executive Officer in the company release, the company is thrilled to reach a collaboration agreement with Magna, which should help it fast track plans to support a broad range of EVs. “We see a growing demand for highly modular EVs from leading tech companies and new electric mobility players who have set their sights on entering the EV realm and building a brand in automotive. REE and Magna working together under the ‘Powered by REE’ approach can help bring their vision to life,” states the release. As per Eric Wilds, Chief Sales and Marketing Officer at Magna, the company will look to leverage its systems capability and unique ability to design,

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engineer and assemble vehicles to tap the growth potential of an evolving mobility landscape that has opened up new business model opportunities. REE and Magna will also explore potential collaboration in global mobility through the creation of a “Mobility-as-a-Service” (MaaS) venture in the Light Commercial Vehicle (LCV) sector that leverages REE’s proprietary X-by-Wire REEcornerTM and EV platform technology as well as Magna’s industrial footprint and capabilities. The REEcorner™ technology, for instance, is said to integrate the critical vehicle components into an area between the chassis and the wheel – the “corners” – creating a compact single module such that each corner is controlled by REE’s proprietary X-by-Wire control technology. It results in the claimed one of its kind fully-flat “skateboard” EV platform offering unprecedented space and interior room for passengers, cargo, and batteries. Notably, it will lend full flexibility to custom-tailor EVs based on a selection of the EV platform size, preferred length, width and vehicle height, payload capacities, drive and steering based on REE’s X-by-Wire technology (all-wheel, front and rear), battery capacity and power source (battery or fuel cell) among others. The focus is also on offering the lowest Total Cost of Ownership (TCO). MEVs are designed with a lower centre of gravity than vehicles with the motor located between the wheels and are designed to allow taller cabins and lower step-in height, yielding more cargo capacity than conventional EV platforms. ACI

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nternational

Automotive-Grade Supercomputer

The ZF ProAI, a next-generation automotive-grade supercomputer is aimed at meeting the manufacturer needs for software-defined vehicles and their new E/E architectures. Team ACI looks at the new and exciting offering from the ZF Group.

oftware functions in vehicles are growing by the day. Add to it its combined strength with the intelligence of sensor information is known to give rise to the driver-assist functions. These driver functions are the hotbed for comfort, added safety and perhaps extended range when driving electrically. Coming off age, in comparison to the traditional vehicle architectures, wherein the exchange is mainly in the decentralised Electronic Control Units (ECUs). It lays the foundation for a dramatic change in Electric and Electronic (E/E)

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architecture. The future entails the bundling of the computing power and the main software functions in a few domain or zone controllers. The ProAI, displayed at Auto Shanghai 2021, for the first time, is claimed to meet the manufacturers' requirements for software-defined vehicles and their new E/Earchitectures. Stated Oliver Briemle, Head of L4 Feature Development, Domain Control and V2X at ZF, “The ZF ProAI is currently the most flexible, scalable, and powerful automotive-grade supercomputer in the world.” Briemle deemed

auto components india n june 2021

nternational

it suitable for any vehicle type and all levels of automated and autonomous driving: from Level 2 to Level 5.

ZF ProAI

The ZF ProAI automotive-grade supercomputer represents customised high-performance solutions for vehicle intelligence. It is platform agnostic yet based on a single product. As per Briemle, at the time of developing the ZF ProAI, the company paid particular attention to two things: standardisation and scalability. Explaining the two prime considerations as key for the processor and the connectors, he explained, the supercomputer’s modular set-up means it the be equipped with System-on-Chip (SoC) variants from different manufacturers – depending on the planned application and the computing power required. Additionally, the connectors are claimed to be compatible with all common plugs on the market. The attention was also on relying on the highest level of flexibility regarding software. In addition to in-house solutions, the supercomputer also runs programs

auto components india n june 2021

and operating systems of the OEMs or third-party developers. Depending on the desired performance, three cooling options are available: passive cooling, air cooling and liquid cooling. Irrespective of the option chosen, the installation dimensions will remain the same. The ZF ProAI features a uniform and compact housing size of 240 mm x 138 mm x 49 mm. It is claimed to be significantly smaller than the previous generations. With improved performance, for instance, in any desired application from Level 2 to Level 5, it can meet the corresponding computing power required. The supercomputer is capable of executing between 20 trillion and one quadrillion computing steps per second. With a performance of up to 250 TOPS per unit, an increase of 66 per cent compared to the previous model, the ZF ProAI RoboThink. Over the previous generation, power consumption is claimed to drop to a greater extent. With one watt of power, the ProAI achieves a performance of approximately three TOPS. It translates to up to 70 per cent less

power consumption. The automotivegrade product in its built is claimed to be more high-tech and built with a higher reliance keeping in mind the harsh operational conditions. The ZF ProAI also offers an ASIL-D computing performance with state-of-the-art protection against cyber threats. The AI capabilities of ZF ProAI have been optimised for deep learning processes and claimed to further enhance its ability to deliver advanced safety features. The board offers a 360-degree GPU-driven fusion of all available sensor data, including environmental measurement data from radars, LiDARs, cameras and audio patterns. In addition to it, ZF has provided a Measurement Data Interface (MDI) for the ProAI to forward the collected sensor data, unaltered, to a central storage system for development and testing purposes. It is for the ease of developers to train artificial intelligence for autonomous driving. The company claims to have gained traction with the first volume production for the latest version of the ZF ProAI expected to start in 2024. ACI www.autocomponentsindia.com

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