AUTO COMPONENTS INDIA JULY 2020 by Next Gen Publishing Pvt Ltd

www.autocomponentsindia.com Vol 7 Issue 05

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July 2020

COMPONENTS

INDIA

Voice of the Automotive Suppliers

JK Tyre Negotiates Headwinds

JAI BSVI Spring Series

Light Weight Braking Solution

ZF WABCO Integration

Content July 2020

COMPONENTS

INDIA

Cover Story

20 JAI BSVI Spring Series

Jamna Auto Industries Ltd. is focusing on high valueaccretive products like the BSVI compliant spring series.

Advik Hi-Tech Augments Product Portfolio

Advik Hi-Tech Pvt. Ltd. has augmented its product portfolio in line with its BSVI and electrification strategy.

06 Newscast

Rohit Prakash takes guard at Varroc

Maheshwar Sahu is Independent Director at MSIL

Vehicle sterilisation solutions by ATS ELGI

Bosch India financial results

Goodyear new appointments

TATA AIG AutoSafe

â&#x20AC;&#x2DC;Keys to Safetyâ&#x20AC;&#x2122; by Tata Motors

DICV MoU to benefit supplier base

Volkswagen India WeltAuto 3.0

Magnetic Maharashtra 2.0

Maha Parwana by Maha Government

Hyundai India export milestone

14 Mobilised

JK Tyre Negotiates Headwinds

JK Tyre & Industries Ltd. negotiated headwinds faced by the tyre industry as a whole. It continues to tread carefully to attain sustainable growth and even higher profitability.

Honda BSVI CD 110 Dream n BSVI-compliant and Future-ready Datsun

30 Business Filing n

ZF WABCO Integration

32 Trending

Jumpstarting Indian Automotive Sector

auto components india n JUly 2020

38 International

Light Weight Braking Solution

40 #Trendsmap

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Just in Time

Servicing Debt

Executive Editor Ashish Bhatia Editorial Advisory Board H. S. Billimoria, Aspi Bhathena Head - Design & Production Ravi Parmar 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 22 43525220 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. 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India, Mumbai -400013. Tel +91 22 43525252 26 B, First Floor, Okhla Industrial Estate, Okhla Phase III, New Delhi - 110020, India Tel +91 11 42346600/78, Fax +91 11 42346679 Unit No:509, 5th Floor, ‘B’ wing, Mittal Towers, MG Road, Bengaluru - 560001, India Tel +91 080 66110116/17, Fax +91 80 41472574 Cenetoph Elite, No.5, Cenetoph 1st street, Teynampet, Chennai - 600018, India Tel +91 044 421-08-421/044 421-75-421

Questions surrounding the transient working capital challenges for micro and small enterprises, average interest service coverage ratio, cash coverage ratio and return on capital employed remain to be answered.

Ashish Bhatia Executive Editor | a.bhatia@nextgenpublishing.net /autocomponentsindiaofficial /autocomponentsindia

@ACImagazine

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Devendra Mehta - Mob No.- 09714913234 Ahmedabad S.No.261/G.L.R.No.5, East Street,Camp Pune - 411001. Tel + 91 20 26830465

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

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icro Small and Medium Enterprises MSME has come under the spotlight lately. Reclassified as per the Government of India notification with effect July 01, 2020, a micro-enterprise, where the investment in plant and machinery or equipment does not exceed rupees one crore and turnover does not exceed rupees five crores; a small enterprise, where the investment in plant and machinery or equipment does not exceed Rs.10 crores and the turnover does not exceed Rs.50 crores; a medium enterprise where the investment in plant and machinery or equipment does not exceed Rs.50 crores and turnover does not exceed Rs.250 crores. To aid the fraternity to pass the litmus test of survival with the demand slump, SMEs having an outstanding loan of Rs.25 crores and up to Rs.100 crores turnover are deemed eligible to apply for the rupees three lakh crores collateralfree automatic loan. The move is expected to benefit 45 lakh MSME units. Among other measures grabbing the headlines is the Rs.20,000 crore equity support to subordinate debt and the Fund of Funds created to infuse equity worth Rs.50,000 crore in the MSME Sector. On the ground, the churn has begun. Reports claim state-run banks disbursed 50 per cent of the Rs.32,050 crores loan, sanctioned to small businesses as of June 12. By June 18, 2020, loans worth Rs.40,416 crores were sanctioned. Of it, Rs.21,028.55 crores are said to have been already disbursed. Prime Minister Narendra Modi backed the liquidity infusion with a technology platform ‘Creation and Harmonious Application of Modern Processes’ (CHAMPIONS) to increase the output and national strength. At the onset, the moves to support MSME look promising. One, however, needs to gauge the actual transfer of benefits by focusing on demand generation potential over the long run. Questions surrounding the transient working capital challenges for micro and small enterprises, average interest service coverage ratio, cash coverage ratio and return on capital employed remain to be answered.

Newscast

Rohit Prakash takes guard at Varroc Varroc Engineering Ltd. appointed Rohit Prakash as President - Metallic Business and Business Development for a major two-wheeler Original Equipment Manufacturer (OEM). He also takes guard as the additional Whole-time Director of the company. To report to Tarang Jain, Managing Director at Varroc, Prakash will leverage his extensive experience in the domain of planning and project execution pertaining

to new plant setups. He will also leverage the experience in developing new business opportunities. Prakash will be responsible for the transmission division known to supply forged, precision, and machined parts for engines and transmissions out of the four manufacturing plants, an engineering centre in India as well as the two manufacturing facilities based in Italy. He will also look at the engine valve

division supplies intake and the exhaust valves for both automotive and nonautomotive applications, especially the titanium and sodium-filled valves for high-performance engines. With two manufacturing facilities and a state-of-the-art engineering centre in India, exporting nearly 50 per cent of the domestic produce to the United States, Europe and Asia, he is expected to play a significant role.

auto components india n JUly 2020

Maheshwar Sahu Vehicle sterilisation is Independent solutions by ATS Director at MSIL ELGI

Maruti Suzuki India Limited (MSIL) has appointed Maheshwar Sahu as an Independent Director of the company. He replaces Renu Sud Karnad who is known to have stepped down from the Board of Directors of the company recently. Taking up the new role for a period of five years beginning from May 14, 2020-25, he will look to leverage the 30-year experience had with the central and the state governments. Specialising in strategic planning, decision making, leadership, connect and influence, coaching, organisation and institution building, large scale project management, environment management, policymaking, and corporate social responsibility, he brings invaluable experience to the table.

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ATS Elgi Ltd. launched a new range of vehicle sterilisation solutions. The Ozone Air Steriliser claimed to use ozone, a natural form of activated oxygen is said to eliminate bacteria, virus, moulds, allergens, odours and harmful pollutants like Volatile Organic Compounds (VOCs) with claims of ensuring a safe and clean in-vehicle environment. Said to be suited to hatchbacks, sedans, SUVs, and the entire universe of commercial vehicles, mentioned, Praveen Tiwari, Managing Director, ATS Elgi, “The Ozone Air Steriliser demonstrates our commitment to innovation and ensures a smooth transition to the post-pandemic world.” “An easy-to-use machine, the Ozone Air Steriliser, is compact, portable and requires zero maintenance and consumables. It disinfects a mid-size car or a commercial vehicle cabin in approximately 10 minutes,” he added. Using a 12 Volt DC supply to transform natural air or normal O2 molecules into ozone or O3 molecules, the steriliser, claimed Tiwari, nullifies the need for additional chemicals or disinfectants known to be harmful or residual in nature.

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.com ponentsindia www.autocom July 2020 Vol 7 Issue 05

COMPONENTS

INDIA

tes Headwinds JK Tyre Negotia

s e i r e S g n i r p JAI BSVI S E SUPPLIERS

E AUTOMOTIV

VOICE OF TH

Light Weight on Braking Soluti

ZF WABCO Integration

Available on

Digital Platform

Newscast

Bosch India financial results At the announcement of the annual financial result for FY2020, Bosch India confirmed that it would restructure and transform projects, in line with its commitment to secure future profitability. Reaffirming its intent to attain sustainable growth through a technologically agnostic approach, averred Soumitra Bhattacharya, “The commitment to secure future profitability and growth has fuelled our focus towards restructuring and transformation projects.” To get past the toughest phase ever for the automotive industry, the company according to Bhattacharya is adopting necessary measures and enhancing operational efficiencies.

Goodyear new appointments Goodyear India Ltd. has appointed Sandeep Mahajan, former VicePresident, Goodyear India, as the Managing Director. Assuming the role and responsibility with effect from June 01, 2020 for a period of five years or up to the date of superannuation or retirement, Mahajan will be replacing Rajeev Anand, who will assume the role of Executive Chairman with

auto components india n JUly 2020

TATA AIG AutoSafe

TATA AIG General Insurance Company Ltd. has launched ‘AutoSafe’, an innovative telematics-based next-gen application device. Provided with all policies including the personal accidental cover of Rs.15 lakhs for both the owner and the driver. Doubling up as an anti-theft device to track vehicle movement, live speed and other driving pattern parameters, the app. is claimed to promote safe driving habits by offering bonus kilometres rewarding good driving behaviour on renewal. The device, GPS enabled, records and delivers a complete statistical health report of the vehicle. Fitted or linked to the car and made active during the policy period, the telematic device contains motion sensor support and guards against fuel slippage and dangerous driving habits. www.autocomponentsindia.com

effect from June 01, 2020 to September 30, 2020. Effective from June 01,2020, Mahajan has been also appointed as the Additional Director and will hold office till the conclusion of the next Annual General Meeting (AGM). The company also announced the resignation of Mitesh Mittal, Finance Director, Goodyear India effective from May 31, 2020. He served as Wholetime Director for the company.

Newscast

‘Keys to Safety’ by Tata Motors To provide safe and convenient personal mobility options with easy financing, Tata Motors Ltd. has rolled out a holistic package of offers called ‘Keys to Safety’. Easy financing, affordable EMIs with long tenure loans and special offers for frontline warriors are the hallmarks of this package. With the help of this package, customers can drive home a preferred variant of the four-star GNCAP safety rated Tiago car for instance for an EMI plan of Rs.5,000 per month for a six month period. Customers also have an option to pay their EMI in full (approximately Rs.90,000 on a loan of five lakhs) and take full ownership of the vehicle. There is the flexibility to lower the EMI amount by taking advantage of

the long tenure EMI schemes (valid up to eight years). Customers can also consider returning the vehicle to financing partner Tata Motors Finance in case of any financial difficulty faced or simply choose to refinance the final

auto components india n JUly 2020

DICV MoU to benefit supplier base

Daimler India Commercial Vehicles (DICV) has signed a second Memorandum of Understanding (MoU) with the government of Tamil Nadu. Aimed at expanding the production capacity of the Oragadam plant, the MoU entails an investment of Rs.2277 crore. Suppliers expected to benefit as a ripple effect of the investment include the likes of Apollo Tyres, Motherson Sumi Systems Ltd., Wabco India (now acquired by ZF Friedrichschafen AG), Jamna Auto Industries and Brakes India among others. Creating a pool of 400 jobs, the MoU is a testimony of the company’s long-term commitment to the Indian market. DICV is also known to have exported more than 30,000 vehicles and 125 million parts, setting a perfect example for the ‘Make in India’ concept. Since the launch of its ‘Made in India’ brand, BharatBenz in 2012, the company has sold more than one lakh trucks and buses in India as well as globally.

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EMI. On offer is also 100 per cent on road funding. Among other special benefits of up to Rs.45,000 have been announced for Covid frontline heroes on cars and SUVs of Tata Motors (except on the Altroz).

Volkswagen India WeltAuto 3.0 Volkswagen India has digitised the used car business. Offering a professional purchase and selling ecosystem, the company has also introduced the Das WeltAuto Valuator, a mobile application to help the customers self-evaluate their current vehicle. Steffen Knapp, Director, Volkswagen Passenger Cars India said, “Volkswagen aims to shift the used car business segment from an unorganised to organised segment. We intend to offer a digitally enabled, professionally managed, value for money proposition to customers looking for individual mobility options.”

Newscast

Magnetic Maharashtra 2.0 With the purpose of facilitating its ‘Magnetic Maharashtra 2.0’ initiative, the Government of Maharashtra has signed 12 MoUs worth Rs.16,100 crore with foreign and Indian firms. Launched with the purpose of reviving the economy post Covid-19, this initiative kickstarted in the presence of Uddhav Thackeray, Chief Minister, Maharashtra, Subhash Desai, Minister for Industries, Government of Maharashtra, and senior bureaucrats of the government with global business leaders and representatives of bilateral investment agencies. Providing the required assistance to the companies to set up their plants in various parts of Maharashtra, the MoUs include two key bilateral investment agreements which will help the state to set up dedicated country desks for closer handholding of new potential investments. Some of the foreign

companies that signed the MoUs include Ascendas from Singapore of Rs.560 crore for logistics in Pune

and Thane and ExxonMobil from the United States of America of Rs.760 crore for oil and gas in Raigad.

Maha Parwana by Maha Hyundai Government India export

milestone

Committed to the Government’s ‘Make in India’ vision, Hyundai Motor India Ltd. (HMIL) attained an export milestone. Exporting 5000 vehicles in May 2020, the company commenced production on May 08, 2020. Speaking about Hyundai’s export strategy, S S Kim, MD & CEO, Hyundai Motor India said, “In line with our global strategy, we have now exported more than three million vehicles to 88 countries which reaffirms our commitment to the country.” “The export of more than 5000 vehicles is a testimony of Hyundai’s resilient efforts towards localisation and to accentuating economic recovery,” he added. www.autocomponentsindia.com

auto components india n july 2020

To recover from the economic slump, Maharashtra government is looking to attract Foreign Direct Investment (FDI) by unveiling ‘Maha Parwana’, a mega permission for new industrial units. To be active within 48 hours of application, this mega permission will help the industries to fast track their operations. An investor had to acquire at least 22 permissions to start operations in the state previously and with this mega permission the industries will now attract more investors. Maha Parwana will also facilitate investors to get all the permissions through a single-window clearance system. Talking about obtaining the permissions, Subhash Desai, Minister for Industries, Government of Maharashtra, said, “Once the industrial unit has started, the rest of the permissions can be obtained in the next two years.” The Uddhav Thackeray-led government has appointed Bhushan Gagrani, Senior IAS officer as a ‘Sherpa’ for bringing in foreign investment to the state particularly from countries like Japan, US, Korea and Germany. A special task force has also been formed to formulate plans and suggestions to attract FDI in the state.

Mobilised

Honda BSVI CD 110 Dream Honda Motorcycle and Scooter India Pvt. Ltd. has strengthened its BSVI product portfolio with the launch of the new Honda CD 110 Dream.

Story by: Deven Lad

auto components india n july 2020

n the first half of June, Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI) timed the launch of the new BSVI CD 110 Dream with Unlock 1.0. In line with the company’s ‘A Quiet Revolution’ initiative, the Original Equipment Manufacturer (OEM), the new CD 110 Dream is claimed to be a significant contributor to the company’s green ambitions. With it, the OEM also claimed to have attained a new performance benchmark. Averred Yadvinder Singh Guleria, Honda Motorcycle & Scooter India Director of Sales and Marketing, “Since 1966, the Honda CD brand has remained customer’s choice globally. The new BSVI Honda CD 110 Dream will offer the best performance, comfort and mileage.” Made available in a standard and deluxe variant, the company is offering the motorcycle with a special, limited

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period, six-year warranty package as a value proposition to the customers.

New performance benchmark

Powered by a new 110 cc Programmed Fuel Injection (PGM-FI) four-stroke engine with a four-speed transmission, the CD 110 Dream offers a peak rated power of 08 hp at 7500 rpm and a torque of 09 Nm at 5500 rpm. The Programmed Fuel Injection (PGM-FI), a new inbuilt system is claimed to make use of sensors to ensure optimum fuel delivery to the engine. Adapting to the ride conditions, it is claimed to facilitate efficient combustion and lower emission levels. The new enhanced Smart Power (eSP) technology is

Mobilised Honda BSVI CD 110 Dream Dimension (mm)

Specifications

Length

2044 mm

Width

736 mm

Height

1076 mm

Wheel Base

1285 mm

Ground Clearance

162 mm

Kerb Weight

112 kg

Seat Length

735 mm

Seat Height

790 mm

Fuel Tank Capacity

9.1L

Engine

4 stroke, SI, BS-VI Engine

Displacement

109.51 cc

Max Engine Output

6.47 kW @ 7500 rpm

Max Torque

9.30 N-m @ 5500 rpm

Fuel System

PGM - FI

Bore x Stroke

47 X 63.121 mm

Compression Ratio

10.1:1

Starting Method

Self/Kick

Transmission Clutch Type

Multiplate Wet Clutch

No. of Gears

Frame and Suspension Frame Type

Diamond Type

Front Suspension

Telescopic

Rear Suspension

Hydraulic Type

Electricals Battery

12V, 5Ah

Headlamp

Halogen Bulb, DC

Tyre Size & Type (Front)

80/100-18 M/C 47P, Tubeless

Tyre Size & Type (Rear)

80/100-18 M/C 54P, Tubeless

Brake Type & Size (Front)

Drum - 130 mm

Brake Type & Size (Rear)

Drum - 130 mm

said to maximise both performance and fuel efficiency owing to the claimed frictional reduction. The Alternating Current Generator (ACG) starter motor is claimed to eliminate the gear meshing noise and

in turn aid the engine start sans a jolt. The company claims that the two mechanical features are significant contributors to an easy engine start operation. It is credited with the efficient utilisation of decompression

coupled with the slightly opened exhaust valves (at the beginning of compression stroke). The â&#x20AC;&#x2DC;Swing Backâ&#x20AC;&#x2122; feature is said to rotate the engine in a slightly opposite direction. This, in turn, allows the

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auto components india n july 2020

Tyres and Brakes

Mobilised HMSI May 2020 Retail sales Honda Motorcycle & Scooter India Pvt.Ltd. (HMSI) sold 54,820 two-wheelers including 54,000 domestic dispatches and 820 twowheeler exports in the month of May 2020. Two-wheeler retail sales crossed the 1.15 lakh unit-mark. BSVI two-wheeler cumulative sales crossed a new high of six lakh units in the same month. The OEM is claimed to have serviced 10.5 lakh two-wheelers at Honda workshops across India according to Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. Averred Guleria, “After the zero dispatches in the month of April, the company saw the wheels of business start turning slowly. By now, a sizable 70 per cent of Honda dealerships have resumed Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. their operations. With sufficient availability of six BSVI products at our network (three scooter and three motorcycle models), our network was able to build on the initial sales momentum crossing over 1.15 lakh retail in the month of May.” With 100 per cent of Honda’s 308 supplier plants getting approvals to restart operations, Honda planned to restart operations in a staggered manner at its Narsapura plant (Karnataka) and the Manesar (Haryana), Tapukara (Rajasthan) and Vithalapur (Gujarat) plants from early June.

auto components india n july 2020

piston to take a ‘running start’, said to reduce the power utilisation in starting the engine. The piston cooling jet in the bike offers lower friction, improved cooling efficiency at an optimum engine temperature level. The offset cylinder and rocker roller arm fitted with needle bearing are claimed to further reduce thethe frictional losses in the engine. Drum brakes with Combined Braking System (CBS) and equaliser enhance rider safety. CBS equaliser, the equaliser technology in the combined braking

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system is said to distribute optimal braking force between front and rear wheels to ensure shorter braking distance. The suspension is made up of telescopic shocks at the front and hydraulic assist type at the rear. Tyres utilise the Honda Eco Technology (HET). 80/100-18 M/C 47P, and are fitted at the front and 80/100-18 M/C 54P, tubeless at the rear. The low rolling resistance tyres courtesy a new tyre compound promise higher fuel efficiency and mileage over the outgoing BSIV model.

Value addition

The BS6 Honda CD 110 Dream attracts with the improved tank design, subtle use of chrome for instance on the muffler and side cowl graphics. A 15 mm longer seat than its predecessor provides ample space to the rider and pillion for longdistance travel with improved ground touching. The two-way functioning engine start-stop switch, an integrated headlamp beam and passing switch up the game for the CD 100 Dream. The BSVI CD 110 Dream is mobilised at Rs.62,729 (Ex-showroom Ahmedabad, Gujarat). ACI

Mobilised

BSVI-compliant and Future-ready Datsun Datsun India comes one step closer to enabling progressive mobility with the launch of the BSVI compliant and future-ready Datsun GO and GO+.

issan Motor Co. Ltd. brand Datsun India comes one step closer to enabling progressive mobility with the launch of the BSVI compliant Datsun GO and GO+. In line with its vision to offer ‘mobility for all’, the company according to Rakesh Srivastava, Managing Director, Nissan Motor India is confident of offering customers a strong value proposition with the futureready cars. Averred Srivastava, “With the new Datsun GO and GO+, we have introduced high-quality products that not only have a

strong value proposition but are also futureready.” “Built with Japanese technology, both cars are BSVI compliant and offer the most affordable Continuously Variable Transmission (CVT) options in India,” he stated.

Under the hood

The three-cylinder 1.2-litre Dual Overhead Camshafts (DOHC) HR12 DE petrol engine on the Datsun GO and GO+, is rated for a peak power of 75 hp at 5000 rpm and a www.autocomponentsindia.com

auto components india n july 2020

Story by: Deepti Thore

Mobilised

Dimension (mm)

Length

3788

Width

1636

Height

1507

Wheelbase

2450

Ground Clearance

180

Luggage Space (L)

265

Kerb Weight (kgs)

D:859/A:875/A(O):878/T&T(O):886/T&T(O) CVT:913

Engine

HR12 DE Engine

No. of Cylinders

Displacement (cc)

1198

Power (Ps)

50kW (68Ps) @ 5000 rpm (MT)

57kW (77Ps) @ 6000 rpm (CVT)

109.51 cc

Torque (Nm)

104 @ 4000 rpm (MT)/104 @ 4400 rpm (CVT)

Engine Type

Naturally Aspirated 12V DOHC EFI

ARAI Mileage (kmpl)

19.02 (MT)/19.59 (CVT)

Suspension Front

McPherson Strut with Lower Transverse Link

Rear

Twist Beam Suspension with Coil Spring

Front & Rear

Multiplate Wet Clutch

Shock Absorbers

Twin Tube Telescopic Shock Absorbers

auto components india n july 2020

Brakes Front

Disc

Rear

Drum

Transmission

5 Speed Manual/CVT

Wheel

14X5.5J Alloy/Steel

Tyre

165/70 R14

torque of 104 Nm at 4000 rpm. The naturally aspirated 12V DOHC EFI engine is mated to a manual five-speed transmission. Nissan is known to have developed a three-cylinder engine built with fewer parts than a four-cylinder engine. Reducing the number of parts is claimed to have helped reduce friction and as a result achieving lower fuel consumption levels. The improved combustion efficiency is said to have helped in achieving better mileage (19.02 kmpl validated by ARAI). For instance, the knocking is known to have been curbed by the lengthy retention of tumble flow in the centre of the combustion chamber. This is said

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to have been achieved by re-adjusting the combustion chamber shape and with the use of a deep piston. The vibration associated with a threecylinder engine was curbed by an outer balancer. Suspension on the Datsun GO and GO+ is made up of McPherson Strut with a lower transverse link at the front, twist-beam suspension with coil spring at the rear. The ride quality is claimed to have been enhanced with twin-tube telescopic shock absorbers. Disc and drum brakes are deployed at the front and rear respectively. Datsun CVT comes with shift locker that prevents accidental gear shifting

Three-cylinder 1.2-litre DOHC HR12 DE petrol engine

Mobilised

Dimension (mm)

GO+

Length

3995

Width

1636

Height

1507

Wheelbase

2450

Ground Clearance

180

Luggage Space (L)

347 (3rd Row Folded)

Kerb Weight (kgs)

D:904/A:912/A(O):913/T&T(O):921/T&T(O) CVT:950

Engine

HR12 DE Engine

No. of Cylinders

Displacement (cc)

1198

Power (Ps)

50kW (68Ps) @ 5000 rpm (MT)

57kW (77Ps) @ 6000 rpm (CVT)

104 @ 4000 rpm (MT)/104 @ 4400 rpm (CVT)

Torque (Nm)

104 @ 4000 rpm (MT)/104 @ 4400 rpm (CVT)

Engine Type

Naturally Aspirated 12V DOHC EFI

ARAI Mileage (kmpl)

19.02 (MT)/18.57 (CVT)

Suspension Front

McPherson Strut with Lower Transverse Link

Rear

Twist Beam Suspension with Coil Spring

Front & Rear Shock Absorbers

Twin Tube Telescopic Shock Absorbers

Brakes Disc

Rear

Drum

Transmission

5 Speed Manual/CVT

Wheel

14X5.5J Alloy/Steel

Tyre

165/70 R14

without using the brake for greater safety. The Datsun GO and GO+ ride on the 14X5.5J steel wheel and 165/70 R14 tyres.

Value Addition

The front fascia with a dynamic front hexagon silver grille and modern hawk-eye headlamps attract. Measuring 3788 mm in length, 1636 mm in width and 1507 mm in height with roof rail, the cars have a wheelbase of 2450 mm and a ground clearance of 180 mm. A boot space of 265-litres is provided on the hatchbacks. Among value additions on the GO

and GO+ are standard features like an immobiliser, central locking, rear parking assist sensors, airbag (driver + co-driver), seatbelt reminder (driver + co-driver), ABS, EBS, brake assist and side crash and pedestrian protection regulation compliance. Among other key inclusions are keyless entry, electric power steering, power windows, electrically adjustable mirrors, gear shift indicator, and the engine running time display to name a few. Datsun has also made the cars available in a sports model. Both the cars come with a standard warranty of two years, extendable

up to five years with a free roadside assistance subscription for two years.

Datsun advantage

Offering flexibility to its customers, the cars are made available with special financial schemes including the â&#x20AC;&#x2DC;Buy Now and Pay in 2021â&#x20AC;&#x2122; scheme which allows customers to choose the start of EMIs (seven month EMI holiday). Other attractions include a 100 per cent finance option, low EMI benefit and EMI Assurance benefit offered exclusively through Datsun Finance. ACI www.autocomponentsindia.com

auto components india n july 2020

Front

Cover Story

JAI BSVI Spring Series

auto components india n july 2020

Jamna Auto Industries Ltd. is focusing on high value-accretive products like the BSVI compliant spring series.

Story by: Ashish Bhatia

amna Auto Industries Ltd. (JAI) commands a majority share in automotive suspension solutions. The regulatory-driven move towards Bharat Stage VI (BSVI) emissions norms has had the company leverage the mammoth 70 per cent market share (66 per cent for Q42020) it commands of the Original Equipment Manufacturer (OEM) business. JAI is the largest supplier to OEM clients like Tata Motors, Ashok Leyland and Daimler India Commercial Vehicles. Other major OEM clients include VE Commercial Vehicles, Mahindra & Mahindra, Force Motors, Isuzu Motors, SML Isuzu, Toyota and UD Trucks. The company with a well planned portfolio expansion strategy is focusing on high value-

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accretive products expected to bring in gradual or incremental growth in value. Adding to the existing product mix, new products, the company according to Randeep Singh Jauhar, Vice Chairman & Executive Director, Jamna Auto Industries is confident of significantly adding to the perceived USPs of BSVI vehicles over their BSIV counterparts. These include claims of a ride quality akin to passenger cars, redesigned cabins for greater driver comfort, computerised engine and better mileage to name a few. Besides contributing to the all important estimate of up to 5x reduction in emissions that will drastically curb vehicular pollution. Of the product additions to its BSVI portfolio that

BSVI spring range

JAI manufactures multi-leaf springs from three kilograms to 200 kg to cover a wide product range suited to commercial vehicles and special application vehicles. The DNA of the JAI BSVI compliant spring range is made using the 51CrV4 material used as the raw input for manufacturing the springs. Known to be high strength quench and tempered steel, it can withstand the field severity associated with springs deployed in the heavy-duty commercial vehicles. As per the European patent office study, a number of leaf spring and spring steels are classified in accordance with international standards with a tensile strength ranging between 1300 MPa and 2000 MPa. The values are said to depend considerably on the thickness of the part. The highest values as per the study are limited to springs that are not very thick. For instance, in general, coil springs manufactured from cold and hot-formed wire rod. In case of the very thick suspension elements like the leaf springs used in heavy commercial-industrial vehicles, very high-quench hardenability steels like the 51CrV4 make for an ideal choice. The main leaf of the JAI spring series is known to be a hybrid of the conventional and parabolic spring. It is claimed to be lightweight and said to have a capacity to carry higher payloads striking a perfect balance for the heavy-duty performance expected of it. Light-weighting is claimed to in turn lead to higher fuel-efficiency and mileage in line with the companyâ&#x20AC;&#x2122;s commitment to contribute to a greener environment with its next generation of products according to Jauhar. The new series is claimed to lead to less tyre wear and tear besides eliminating the need for an overhaul with grease. Grease overhauling is typically associated with the older generation of squeaky springs.

The homegrown top leaf spring brand ranks second in the world with a

Corporate declarations and financial snapshot

In a SEBI disclosure, the company declared that the Promoter Group company MAP Auto Ltd acquired 1,00,000 shares (0.02 per cent of the total share/voting

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Renewed outlook

Randeep Singh Jauhar, Vice Chairman & Executive Director, JAI

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auto components india n july 2020

include a lift-axle, stabiliser bar, pneumatic suspension, trailer suspension and allied products like U bolts, z springs, opined Jauhar, the company is confident of the modern BSVI compliant springs accounting for strong growth. Notably, leaf springs in the recent past accounted for approximately 91 per cent of the sales with the rest from lift axles and pneumatic suspensions.

capital wherever applicable) carrying voting rights. As per the statement of the companyâ&#x20AC;&#x2122;s audited consolidated financial statement for the quarter and the year ended March 31, 2020, the company recorded a total operating income of Rs. 23,749.43 lakhs compared to Rs.22,858.99 lakhs for the previous quarter (Q32020) exclusive of the other income. A sharp decline from the Rs.54,283.50 lakhs recorded in Q32019. On an annual basis, the company recorded an operating income of Rs.112,895.15 lakhs against Rs.213,481.23 for the year ended March 31, 2019. Total Comprehensive Income for the period stood at Rs.1124.57 lakhs for Q42020 against Rs.1014.22 for the previous quarter (Q32020). A sharp decline from Rs.3190.36 lakhs in the quarter ended March 31, 2019. On an annual basis, the total comprehensive income stood at Rs.4,797.02 lakhs against Rs.13,607.86 lakhs the previous year (March 31, 2019). In FY2020, the company attained 32 per cent revenue from its new products and 24 per cent revenue from new markets. Return On Capital Employed (ROCE) for FY2020 stood at 16 per cent. The company sustained a dividend payout for the ninth consecutive year at 40 per cent.

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manufacturing capacity of 2,40,000 metric tonne per annum. A complete suspension solution provider for commercial vehicles, the company has nine state-of-the-art plants strategically located in close proximity to OEMs at Yamuna Nagar, Malanpur, Jamshedpur, Pune, Chennai (leaf springs and suspension), Pilliapakkam, Hosure and Pant Nagar (assembly plant), Lucknow ( both under subsidiary entity). The company has additionally built capabilities at two new locations in Indore and Adityapur. The company is known to have 5000+ part numbers of leaf springs in the aftermarket space. The Companyâ&#x20AC;&#x2122;s reflection on Quality Standards is its recognition of the highest Quality Management System standards for the Automotive Sector - ISO/TS16949:2009 and ISO 9001:2008. All major operations are known to have been set up with PokaYoke systems to ensure the highest quality standards with highly reliable mistake-proofing or inadvertent error prevention. The agreement with Tinsley Bridge Ltd., the UK for transfer of extra lite spring technology and special steel technology is believed to give it a technical edge over its competitors. With an indigenous Research and Development centre capable of catering to design of all automotive applications, explained Jauhar, GM Sales, Jamna Auto Industries there is a facility of in-house validation and testing of products using Servo Actuator to simulate actual vehicle conditions. Using CNC automatic parabolic rolling machines imported from Japan and Germany, the company

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Systems LLP (JSS LLP), the company finds itself in a good state to cater to the domestic aftermarket demand. With 3000+ distributors, 6000+ retailers and 15000+ mechanics across 465 cities in India, at more than 16,000 touchpoints the company has a valid reason to believe so. In the immediate near term, demand for the companyâ&#x20AC;&#x2122;s product is however directly dependent on production levels of OEMâ&#x20AC;&#x2122;s and the commercial vehicle utilisation scale in the domestic and export markets signed-off Jauhar. The Group maintains capex plans of Rs.80-85 crore per annum going forward. ACI

Hardeep Singh Suri, Assistant Manager, Sales, Jamna Auto Industries Ltd. (middle) and Satish Sharma, Zonal Sales Manager-West, Jamna Auto Industries Ltd. (first from right) receiving the Award for Technological Excellence from Ashish Bhatia, Executive Editor, Auto Components India (first from left) at ACI Awards 2020.

according to Jauhar has ensured high levels of consistency for instance in the stiffness in the springs. As the company resumes operations at plants and offices basis customer orders and as per permissions received

from authorities and in adherence with the social distancing norm and Governments guidelines, the company is banking on its strong aftermarket network for growth in the BSVI era. Through its subsidiary JAI Suspension

Trailer Air Suspension

As per the consolidated view by ICRA of Jamna Auto Industries Limited (JAI) and its subsidiaries, the revision in outlook factors for long-term/short-term: Fund based and non-fund based to AA-/A1+ reaffirmed; outlook revised to negative from stable is stated to be in course with an expected continuation of weak demand trends in the Commercial Vehicle (CV) industry over the near term. It is also an outcome of the weak macroeconomic environment coupled with the price hikes on account of transition to BSVI emission norms effective April 2020. The M&HCV (truck) volumes contraction by 42.3 per cent (11M FY2020) and other dampening factors like the revision in axle load norms (from July 2018), weak economic activity and infrastructure spending together with the weak financing availability as a result of the liquidity constraints faced by NBFCs. ICRA cites the implementation of GST and E-way bills leading to the faster turnaround time of trucks resulting in surplus capacity in the trucking system. The surplus capacity has hurt the demand for new vehicles. This weakness in the M&HCV demand according to ICRA resulted in moderation in sales of JAI Group to CV original equipment manufacturers. The decline in its aftermarket sales in 9M FY2020, as transport operators deferred replacement cycle, marked a sharp 44.2 per cent decrease in overall sales. JAI on its part is known to have negotiated the headwinds through several cost control initiatives. The rating reaffirmation has taken timely measures by the management into consideration. Going forward, ICRA expects the Group to benefit from its increased focus on replacement and export market as well as new product development. It is expected to present the company with medium-term growth opportunities with content per vehicle rising. While the strong business position with CV OEMs, a favourable shift in sales mix towards higher-value accretive products and comfortable credit profile hold the company in good stead, the credit challenges, the company needs to address on priority include high segment dependency exposing it cyclicity, high client and product concentration and elongation of receivable days leading to a higher working capital requirement. www.autocomponentsindia.com

auto components india n july 2020

ICRA outlook

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Advik Hi-Tech New Range Advik Hi-Tech Pvt. Ltd. has augmented its product portfolio in line with its Bharat Stage VI and electrification strategy.

MAY 2020 auto components india n july 2020

Story by: Deven Lad une based Advik Hi-Tech Pvt. Ltd. has long been pursuing its Bharat Stage VI (BSVI) and electrification strategy. At the Auto Expo 2020, the company showcased a slew of BSVI and EV products as a testimony to the company having augmented its product portfolio. Among crucial developments hinting at the strategy paying off according to Maneesh Satarkar, Vice President-Marketing and Business, Advik Hi-Tech Pvt. Ltd. was the company winning an order of three million units of a new BSVI engine complying with its throttle body to be built in a span of just one year. The company has also set its sight on Battery Management Systems (BMS). Averred Satarkar, “We have 75 per cent local business and 25 per cent international export so our focus is the local business, for that, we are prepared with BSVI products like throttle

body which is in demand and in case of EVs the BMS.”

BSVI range

In the company’s BSVI product portfolio, the company is banking on the throttle body, electric purge valve, electric secondary air injection, oxygen sensor, electric fuel pump and fuel delivery module. Aligning the group strategy in line with the government’s ‘Make in India’ vision especially given the recent emphasis by Prime Minister Narendra Modi, on turning vocal for local, Satarkar expects continual demand over the medium to long term. “We believe in localisation. All our products are manufactured in India so all stakeholders are benefited with the surrounding ecosystem. While we source foreign technologies, they are tweaked for Indian conditions and local regulations like BSVI,” he

Advik Hi-Tech Pvt. Ltd. showcased BSVI and EV product range at the Auto Expo 2020.

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Cover story Battery Management System (BMS)

atmosphere from the fuel tank and the fuel system, these systems are claimed to be low on maintenance. In case of a malfunction, however, it could translate to a vehicle failing the On-board Diagnostics (OBD) II plug-in emissions test. The purge valve, placed in the EVAP, for instance, controls the flow of fuel fumes from the canister to the engine. In case of a failure, the resultant vacuum leak can adversely affect the engine making it a critical component. It is known to change the carâ&#x20AC;&#x2122;s air to fuel ratio, causing rough idling, in turn, making it difficult to start the vehicle. Located between the carburettor and the engine crankcase, the reed valve is

Motor and Motor Controller with brake system

critical to the engineâ&#x20AC;&#x2122;s performance. In case of a failure, it can lead to engines finding it heard to accelerate. The engine stands to backfire on excess fuel being poured in. The company is also banking on the market pull for its variable displacement oil pumps built-in technical collaboration with German R&D company FMO Technologies (Trochocentric) GmbH. Entailing design, development and production of oil pump for passenger cars, commercial vehicles, stationary engines and transmission systems, the latter is crucial to control the oil pressure and volume in relation to

Maneesh Satarkar, Vice President-Marketing & Business, Advik Hi-Tech Pvt. Ltd.

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MAY 2020 auto components india n july 2020

stated. Adding that in case of the BSVI norms mandating the use of Electronic Fuel Injection (EFI) systems in twowheelers, for instance, to replace carburettors, Starkar drew attention to the in-house built, complete throttle body assembly. Attention was also drawn to the secondary air injection valve claimed to aid in the injection of fresh air into the exhaust stream and in turn, facilitate fuller combustion of exhaust gases. With BSVI norms, Satarkar cited the first-ever Evaporative Emission Control System (EVAP) standards for two- and three-wheelers. Known to prevent gasoline vapours from escaping into the

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Electric water pumps.

the engine’s operating conditions. Claimed to offer a higher fuel efficiency by a margin of three to six per cent, the pump is also said to optimise heat transfer in the head and the pistons. The resultant power is said to reduce the formation of carbon deposits on turbocharged motors.

auto components india n july 2020

EV range

In the case of EVs, the company is banking on the BMS, motor and motor controller along with the brake system. The manufacturer offers electric water pumps claimed to reduce the engine load as a result of the master cooling circuit powered by motors. To bolster its EV product suite including the BMS and the battery pack, the company has also invested in ‘Ion Energy’, www.autocomponentsindia.com

a startup to progress on in-house battery manufacturing. Among other key products in the EV suite are the axial flux motor and a motor controller claimed to be compact, robust and reliable. The company according to Satarkar is claimed to have built a unique architecture wherein the motor features a scalable and modular in design. Stacks of motors can further be used to scale up for multiple higher outputs as desired.

Future roadmap

In 2021, the European Union is expected to introduce new emissions regulations to limit the auto manufacturer’s fleet-wide average CO2 emissions by around 27 per cent, from 130 g CO2/km to 95g CO2/km. Advik is looking forward to

it being introduced in India with the Corporate Average Fuel Economy (CAFE) norms in 2023. “The electric vacuum pump will help in the reduction of CO2,” said Satarkar. With clients in Bajaj Auto Limited, Honda Motorcycle & Scooters India Ltd., Suzuki Motorcycle India Ltd., Hero Honda Motors Ltd., Yamaha Motors India Ltd, Kawasaki Motors Corp and Lombardini India Pvt. Ltd., the company has set its sights on other segments like the fourwheeler segment. By 2025, Advik aims to attain a valuation of an estimated USD 300 million. If it succeeds, it will be on the back of expansion with existing customers, expansion to new customers with existing products and on the back of expanding to future relevant product categories proactively. ACI

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Negotiating Headwinds Faced by the Tyre Industry JK Tyre & Industries Ltd. negotiated headwinds faced by the tyre industry as a whole. It continues to tread carefully to attain sustainable growth and even higher profitability.

K Tyre & Industries Ltd. continues to take measured steps to attain sustainable growth and improved profitability. The company is claimed to have well-negotiated the headwinds faced by the tyre industry as a whole in the quarter and the year ended March 31, 2020, and will continue to tread carefully. Averred Dr Raghupati

Singhania Chairman and Managing Director, JK Tyre & Industries Ltd., â&#x20AC;&#x153;The tyre industry have faced a downturn prior to the current pandemic, which further aggravated the situation posing unprecedented challenges. As a consequence, both the commercial vehicle and the passenger vehicle segments have been severely impacted. Despite www.autocomponentsindia.com

auto components india n july 2020

Story by: Ashish Bhatia and Deven Lad

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TBR milestone

Dr. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd.

this, the company has posted higher sales in the passenger car and two and three-wheeler segments.” Added Dr Singhania that the company with a renewed focus was also able to register a 37 per cent growth on the exports front.

auto components india n july 2020

Financial snapshot FY2020

The company has evaluated and factored in, to the extent possible, the likely impact that may result from the Covid-19 pandemic known to have caused serious disruptions on the global economic and business environment. As per the consolidated results for the quarter and the year ending March 31, 2020, the net operating revenue of the company stood at Rs.1803.09 crores in Q42020 and Rs.8,753 crores in FY2020 compared to Rs.2715.95 crores in the same quarter the previous year (March 31, 2019) and the annual revenue of Rs.10367.76 crores (FY2019). This included segment revenue from India at Rs.1634.75 crores for Q42020 and Rs.Rs.7649.11 crores for FY2020. Mexico contributed Rs.199.50 crores for Q42020 and 1191.07 crores for FY2020. Notably, inventories of furnished goods, work-in-progress and stock-in-trade for Q42020 was a negative (156.06) compared to 3262, the quarter a year ago. For the entire year, the unsold inventory was proportionately lower at negative (14.46). This was also significantly lower than the negative (294.90) levels for FY2019. www.autocomponentsindia.com

JK Tyres rolled out its 20 millionth Truck/Bus Radial (TBR) tyre recently deemed as the first and the only Indian company to achieve the milestone. Commenting on the milestone, Dr Raghupati Singhania, Chairman & Managing Director said, “This is a landmark achievement, not only for JK Tyre but for all its stakeholders, especially the customers who have shown their unwavering trust in our engineering prowess and technological capabilities.” “As a pioneer and market leader, we remain committed to driving innovation and bringing products for our fleet customers that are high on efficiency, safety and costeffectiveness,” he mentioned. The company according to Dr Singhania will continue to work towards strengthening its position through technology and revolutionary sustainable mobility solutions. JK Tyres achieved the distinction of rolling out 10 million TBRs in August 2016.

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JK Tyre furthers commitment to the United States

The company registered a profit/ loss after tax of negative Rs.46.95 crores in Q42020 compared to the Rs.35.88 crores registered in the Q42019. For FY2020, the company registered a profit of Rs.149.01 crores compared to Rs.176.29 crores recorded in FY2019. Dr Singhania also drew attention to the headwinds encountered on the currency front with the Indian rupee weakening significantly towards the end of the FY2020. “The US Dollar liability of the company along with its subsidiaries Cavendish and JK Tornel, Mexico had to be recorded at the exchange rates prevailing on the last day of the Financial Year, which though exceptional and notional in nature, impacted the Profit Before Tax,” he explained. As per the audited financial results, under the head ‘Items to be reclassified as profit or loss,’ exchange differences on translating the financial statements of its foreign operations stood at (50.67) compared to (3.11) in Q42019. For the year, it stood at (47.51)

in a brand acquisition exercise had acquired Mexican brand Tornel in 2008, now JK Tornel. The capacity enhancement at JK Tyre is said to have played a major role, contributing to the steady growth of the company in the global markets including the US. “The United States has been an important export market for us. The fact that we are now setting-up our operations here goes to show the significance of this country in our larger global expansion plans,” mentioned Dr Raghupati Singhania honoured with Mexico’s highest Dr Singhania. The focus at civilian award for non-nationals in 2018 for his efforts to strengthen bilateral ties between India and Mexico the company continues to be on further driving the sales in Truck and Bus Radials, through the introduction of new passenger car segment besides on the products and further enhancement of light commercial vehicles segment the sales channels. compared to 0.89 for FY2019. The total equity and liabilities of the company are pegged at Rs.11290.17 crores compared to Rs.11316.41 crores as in FY2019.

Banking on goodwill The company according to Dr Singhania is banking on the long-standing

relationships and the goodwill with customers, suppliers and the stakeholders including its employees. Going forward, the company is confident of sustaining business operations, cash flows, future revenue, assets and liabilities with measures like reduction of fixed costs across all activities as it restarts plants and continues to streamline operations and sales. ACI

JK Tyre Steel Wheels Centre in Muzaffarpur, Bihar

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In a boost to its global expansion strategy, JK Tyre & Industries Ltd. has commenced operations in the United States. The company has set up a new entity - ‘Western Tires INC’ based at Houston, in Texas. As part of the expansion plans, Western Tires INC will act as a marketing arm for the U.S market and will focus on sales, service and network expansion. “With our own sales and marketing channel, we are furthering our commitment towards the US market to provide an enhanced delivery and service experience to our customers backed by a team of technical experts from India and Mexico,” stated Dr. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd. With an over two decades exports exposure to the United States through a network of local partners, the company

Business Filing

ZF WABCO Integration ZF Friedrichshafen AG has commenced the integration of WABCO on receiving the last of the regulatory clearances.

auto components india n july 2020

Story by: Ashish Bhatia

F Friedrichshafen AG has commenced the integration of WABCO Holdings Inc. on receiving regulatory clearances from all authorities. The final clearance for the previously announced merger of WABCO and ZF came from the Chinese State Administration for Market Regulation. Aimed at constituting a global integrated systems provider for commercial vehicle technology, ZF WABCO will be integrated into the former as a separate Commercial Vehicle Control Systems Division. With it, ZF will strengthen its focus on expanding its commercial vehicle service portfolio and on operating customer business according to Wolf-Henning Scheider, Chief Executive Officer

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at ZF Friedrichshafen AG. “The combination of these two successful enterprises will bring a new dimension of innovation and capability for commercial vehicle systems technology,” averred Scheider. “Thanks to our perfectly complementary portfolios and competencies, we are able to offer unprecedented solutions and services for manufacturers and fleets globally. In this way, we are actively shaping the future of the changing transportation industry,” he stated.

New Commercial Vehicle Control Systems Division

Expected to to be a value-addition for customers for

worldwide locations. These employees, in turn, are expected to work closely with ZF’s existing Commercial Vehicle Technology division.

Business Filing

driving our strategy for technology leadership, globalisation and excellence in execution we close this tremendously successful chapter,” he expressed. The differentiated technologies and customer intimacy developed over the years will be leveraged going forward to sustain the company identity as the global leader for the next generation of autonomous, electric and connected commercial vehicles. Acknowledging the development to have come at an unprecedented time, Scheider, referring to the global pandemic and its impact said, “We are currently focussing our efforts on protecting our employees, ramping up our production, and securing the company’s liquidity.” Expressing confidence in the acquisition, in the long term, having the potential to make the company stronger, ZF according to Scheider will employ an estimated 12,000 people across 45

Providing CV systems

Mobilising commercial vehicle integration, ZF is aiming to offer a unique range of products and services. The extensive range of products will span conventional and electric drive and chassis components. It will also consist of a comprehensive suite of sensors as well as fully integrated, advanced braking, steering and driver assistance systems. Especially aimed at Original Equipment Manufacturers (OEMs) actively seeking technological differentiation for their new vehicle platforms. The company will also offer an extensive global aftermarket service network for commercial vehicles. ACI

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customers, employees and shareholders, the acquisition of WABCO marks a major milestone for the company. Testimony to the consistent transformation in the realm of powertrain and digitisation, its the start of a new era. WABCO will operate as an independent division Commercial Vehicle Control Systems to become the tenth division within ZF. It will be headed by Fredrik Staedtler following the retirement of Jacques Esculier, Chairman and CEO of WABCO. By combining forces with the ZF Group, WABCO according to Esculier will be elevated to the three largest premium automotive suppliers with full access to the unique capabilities, resources and stability. “WABCO Board of Directors together with the shareholders are convinced that the strategic transaction with ZF represents the best future pass for our company, for us customers and for its employees, ” he stated. “By continuously

Trending

Jumpstarting Indian Automotive Sector

auto components india n july 2020

Organised by Grant Thornton, the webinar on jumpstarting the Indian automotive sector had experts deliberate on challenges and opportunities coming the industry’s way. Story by: Deepti Thore

rant Thornton recently organised a webinar on ‘Jumpstarting the Indian Automotive Sector’. With industry experts in attendance, the moderator set the tone by giving a backdrop of the slump in the sector recorded in 2019. According to the moderator Saket Mehra, Partner & Automotive sector leader, Grant Thornton India, the pandemic, set aside any growth prospects that the industry was looking forward to in 2020, in turn, said to have dashed all hopes of a recovery. “Nothing is more expensive than a missed opportunity hence the auto industry needs to remain optimistic and look forward to opportunities across all the domains within the industry,” he

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averred. To help the industry emerge stronger out of the crisis and get back on its feet, the distinguished panel on the webinar spoke of priority focus areas if the industry were to overcome converging pressures. From demand slowdown, unutilised capacity and regulatory challenges. Key highlights of the session centred on establishing a good base, setting digitisation in motion, looking at automation and upskilling. Used car market segment, aftermarket and scrappage policy also found a mention. The session also deliberated upon means to deliver money, manage risks and ways to strengthen communication across all verticals.

Trending Siddhartha Nigam National Managing Partner - Growth Advisory, Grant Thornton India

Looking at the trend over the last 1012 years, the session drew attention to the Indian automotive industry moving in tandem with the GDP growth, barring an exception of a few years in between. Contributing an estimated seven per cent to the Indian GDP, if the industry, for example, recorded production of 26.3 million vehicles in FY20. The volumes projected it was feared, could roll back the industry prospects back to the 2013-14 levels. A factor of how soon India riggles out of the degrowth phase. As per a statistical study cited in the session, passenger vehicles sales nosedived by 51.72 per cent in March 2020. Commercial vehicle sales dipped by 88.05 per cent in the same period. In comparison, exports recorded a degrowth of 24.51 per cent. Drawing attention to the Indian economy’s expected growth rate at 1.9 per cent in 2020 as per the recent IMF ‘World Economic Outlook’, the session compared it to the global contraction of three per cent. It was unanimously agreed upon that India’s automotive sector could take until Q3FY2021 to recover. Citing an over 12 per cent growth in value of India’s GDP in line with the automotive mission plan 2016-26 the panellists cautioned the estimates of being far-fetched.

If GDP growth falls marginally to four per cent, the automotive sector could witness degrowth of (-) 13 per cent. “To overcome these challenges, the companies need to focus on managing shop floors, managing excellence practices, ensure effective risk management for business continuity, redesign the supply chain and vendor risk assessment,” stated Siddhartha Nigam, National Managing Partner - Growth Advisory, Grant Thornton India. “They need to balance liquidity and cost of capital and of course tap into new markets,” he added. Projecting a second scenario, for instance, if the GDP settles at one per cent, the sector could witness degrowth of (-) 20 per cent in sales, he opined. Drawing attention to the sector, by the end of the year, facing two consecutive years of double-digit decline in sales, Nigam was quick to point it as a phenomenon not witnessed in the last two decades. Talking of the silver lining, the panel of experts were of the firm belief that with China’s monopoly being challenged globally, India stood a strong chance to get back in the reckoning. “OEMs and auto component manufacturers should embrace the opportunity to double its exports in the next five years,” quipped Nigam.

Amit Gupta

President – Business Excellence, Minda Industries

“We need to preserve the present and secure the future.”

Tiding over supply chain bottlenecks

The automotive industry sources 80 per cent of the auto components locally. Currently, almost 60 per cent of the auto suppliers are located in the red zone. It in effect implies, if the OEMs were looking at the resumption of operations they were staring at a huge supply chain risk impacting their operations as their suppliers, in turn, remained to be functional fully. Many, yet to start their operations. Even if production were to resume it would eventually be hampered. From www.autocomponentsindia.com

auto components india n july 2020

Growth projections

“OEMs and auto component manufacturers should embrace the opportunity to double exports in the next five years.”

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Employees

Smart Product

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Smart Factory

Strategy and Organisation

Smart Operations

Data-driven Services

a global supply chain perspective, India currently imports 15 per cent of its auto component requirements from different countries. 30 per cent from China, 30 per cent from European nations, and 40 per cent from the rest. Increasing the localisation efforts, it was agreed, could help reduce the reliance. India is not one of the top exporters when it comes to auto-components and it could be a time to turn around the standings among top export nations. Opined Mehra, “We majorly export to the US and Europe but not to other countries. This is a great opportunity for India to be looked at as a bankable export hub in the times to come.” Citing the need to manage the cost of operations with rising automation levels in manufacturing, Mehra spoke of the industry looking at adopting Industry 4.0, IoT, artificial intelligence besides introducing other aspects of machine learning onto the shop floor. Julianne McGarry, Head, Controls and Compliance Tower, Tata Motors Group added, “There has to be enough economic gain in the proposition to warrant incurring design, ruling expenses all over again. Most of our customers are struggling for cash right now. There have been good enough reasons to prioritise spending on production parts. However, this does not stop the shift. It will delay it.” Averred Ramashankar Pandey, Managing Director, Hella India Lighting Ltd., “The interdependence on the suppliers, not only on tier-1 but also tier -2 and 3 and the OEM will be high going forward.” “The need of the hour is for fragmented industry associations like ACMA, SIAM, Electric www.autocomponentsindia.com

Vehicle Association, tyre battery association among others to collaborate and together steer ahead in the right direction,” he said. He advocated the need to have a collective cluster of OEMs with suppliers getting access to the collective infrastructure to in turn accelerate the development of the entire ecosystem. Talking of skilled labour availability, he urged for the ecosystem to facilitate the migration compatibility of labour so that they were free to move from one supplier to the other. Estimating a high investment to build such an ecosystem, Pandey said there was a need to determine funding sources given that the cost of capital in the country was high.

Ramashankar Pandey Managing Director, Hella India Lighting Ltd.

“With the introduction of scrappage policy, employment will rise manifold in the aftermarket space.”

Capitalise missed opportunities

India has never missed an opportunity to miss an opportunity, quipped Vivek Vikram Singh, Managing Director & Group, CEO, Sona Comstar. “The opportunity to become the factory of the world has always been there for India. Time after time we keep missing opportunities be it because of land or labour reform or other taxation norms and general bureaucratic inefficiencies.” he said. Singh added that the trend of shifting away from China started around 2015-16 because of economic reasons. “The labour cost in China increased and people started looking for alternatives. US-China trade wars

Saket Mehra Partner & Automotive sector leader, Grant Thornton India

“Nothing is more expensive than a missed opportunity.”

Social distancing norms followed at Sona Comstar

Trending Julianne McGarry Head, Controls and Compliance Tower, Tata Motors Group

“There needs to be great focus on risk management.”

Expressing confidence in India getting back to 7.4 per cent GDP by 2021 from the projected 1.9 per cent for 2020, Dr Tim Klatte, Partner and Auto industry Expert, Grant Thornton China said, “There is light at the end of the tunnel and we will get through this phase.” Citing an estimated 150 auto factories in 26 countries believed to be in a shutdown state, Klatte urged Indian companies to seek solace in the data published by the China automobile association of manufacturers as of April 2020. As per the data published, the

resumption rate of China’s automobile enterprises and parts enterprises have exceeded 90 per cent.

Merger and Acquisition

Calling for the need for quality Mergers & Acquisitions (M&A), Singh cautioned against M&A initiatives for the sake of raking in more revenue. He urged the industry to look at four kinds of assets: Good assets with good financing will remain to exist for a long time; Bad assets with good financing will struggle to survive; Bad assets with bad financing would have already suffered and closed; Good assets with bad financing will just see a change of ownership and they will survive. “If there is a good asset, it produces the power and assembly that is required by the industry and they will find a new home. There will be no consolidation by elimination,” he opined. On the prospect of OEMs taking over some of the suppliers, he added that the Japanese and Koreans might see it happening as it is how they have traditionally done business and could lead to them taking up more ownership.

Cash is King

With the Covid-19 crisis, the auto sector has gone back to the old mantra: Cash is King. Companies will have to find ways to work around Covid-19 and move forward. While the sector is confronted by liquidity issues, it is not just limited

Vivek Vikram Singh Managing Director & Group, CEO, Sona Comstar

“If there is a good asset, it produces the power and assembly that is required by the industry.”

to the OEMs or the suppliers it was unanimously agreed. The impact according to the panel had extended to tier-1 and tier-2, dealers, aftermarket space and the end consumers. Highly leveraged companies were concluded to be at a disadvantage compared to the more financially stable ones. Citing the extension of impact to global companies operating in India, it was pointed out that limited financial support from their parent companies posed a risk for the latter. “Ensuring solvency and scenario planning is important in the current situation,” www.autocomponentsindia.com

auto components india n july 2020

began after Trump got elected which added more urgency to the shifting and this crisis has further accelerated the move away in favour of India,” he opined. Speaking of India’s export growth over the last five years, Singh opined the growth has been under par. Lauding the government initiatives over the past year including the move to lower the corporate taxes, the incentivising of building manufacturing units at 17 per cent, both lowest in the region and the developing world, he urged the government to also look at reforming policies like energy security or energy supply, labour reforms, infrastructure adequacy and increased cooperation in the industry in general. “There is no reason that the exports will not increase especially with four countries the US, Korea, Japan and France,” he beamed.

Trending

N.K Taneja Financial Consultant and Auto industry expert

auto components india n july 2020

“Ensuring solvency and scenario planning is important in the current situation.”

mentioned N.K Taneja, Financial Consultant and Auto industry expert, while providing his view on the financial and liquidity perspective. Companies need to plan their cash flow as per V, U or L curve, he opined. “It is crucial to roll out daily, weekly or monthly plans and have a commander in chief to carry the plans forward. Risk chart or risk mitigation chart should also be prepared,” he suggested. “Cash outflow will now be called as cash burning. Multi-layer decision making should happen even before a single penny is burnt. All cash operations should be centralised and the commander in chief should give the final approval for any any financial transcation,” he added. Calling for the need to align the KPIs and KRAs of the team with liquidity, cash inflow and deductions or deferment of cash outflow, he urged the industry to relook at liquidity associations with fixed and variable costs to entirely redefine the cost structure, keeping a zero-based structure or zero base formulation model.

Shifting customer preferences

Talking about customer behaviour expected to change post-Covid-19, Siddharth Vinayak Patankar, EditorIn-Chief, Car and Bike opined, “As www.autocomponentsindia.com

seen in China, smaller segment vehicles will gain popularity especially in passenger vehicle space. We will see a shift back to two-wheelers, especially scooters. Added Patankar that there is a need for the automotive sector to incentivise recycling plans and therefore the need for a scrappage policy for vehicles. “If it gets the green light it will be a good move. The need of the hour is for something radical to happen,” he signed off. ACI

Siddharth Vinayak Patankar Editor-In-Chief, Car and Bike

“Smaller segment vehicles will gain popularity especially in passenger vehicle space.”

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Light Weight Braking Solution Lanxess AG in partnership with BOGE Elastmetall GmbH has developed the first all-plastic brake pedal. Story by: Deepti Thore

auto components india n july 2020

l 38

ight-weighting has moved beyond lighter body panels and reinforcements to looking at every nut and bolt that goes into making a highperformance vehicle. Brake assemblies are no exception. Addressing this growing demand for lightweight braking solutions, Lanxess AG through its High-Performance Materials (HPM) business unit in partnership with BOGE Elastmetall GmbH (BOGE) is claimed to have developed a first-of-its-kind all-plastic brake pedal made using thermoplastics. The all-plastic brake pedal finds application in motorsports, the testbed for anything automotive. An outcome of Lanxess leveraging its expertise in the development and manufacturing of modern plastics and BOGE putting to good use its exposure to vibration technology and plastic applications in the automotive industry. The brake pedal is said to have been specially designed in keeping with the high load

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requirements of motorsports. In this case, a battery-electric sports car.

The DNA

Claimed to shave off 50 per cent weight of a steel brake pedal, the plastic brake pedal offers higher mechanical strength courtesy a thermoplastic composite design. The company credits the multi-axial fibre layer construction of the Tepex Dynalite besides the additional tape reinforcement. The brake pedal for the battery-electric sports car uses a composite structure with a polyamide 6 matrix. A precise combination of layers is arranged in various orientations. Made up of continuous glassfibre fabric with fibres arranged at 45-degree angles on the two covering layers lend to the high torsional strength of the pedal. Multiple tapes with glass-fibre rovings are used in the brake pedal to reinforce the bottom side of the

component. Owing to the mutually compatible plastic matrices of the tape and Tepex, the tapes can simply be welded onto the Tepex insert using a laser. It is claimed to result in a tailor-made laminate with fibre layers known to follow load paths precisely and in a manner that meet precise load requirements.

International

The production starts with the accurate alignment of tapes using optical measuring systems and then positioning them on the Tepex insert so that they can be welded to it. This assembly is then thermoformed and back-moulded with polyamide 66 using an injection moulding process. The aim is to achieve a level of process, structural and functional integration that goes far beyond classic design methods in order to achieve significant weight reductions in vehicle structures. According to Dr Daniel Häffelin from the Innovation Center at BOGE Elastmetall, four different brake pedal designs are in the mass production stage based on the all-plastic version. For all component versions, the load paths are also optimised to suit the various torsion directions.

The future potential of thermoplastics Lanxess sees great potential for thermoplastics in the future. For instance, thermoplastic composite structures

The automated manufacturing process, hybrid moulding and short cycle times are said to particularly suit largescale production to, Averred Dr Klaus Vonberg, Project and Business Development Manager, Tepex Automotive, Lanxess, “Extensive automation allows the geometrically complex safety-critical component to be manufactured efficiently and in a manner suited to large-scale production.” The automated process of manufacturing brake pedals integrates draping of the Tepex insert and the tapes in the subsequent injection moulding process.

with tailored fibre orientation could make inroads sooner than later with the proliferation of EVs across vehicular segments. Explained Vonberg, “Examples of applications for Tepex inserts include frontend systems and bumper beams, brackets for electrical and electronic modules, trunks and spare wheel wells, battery housings and covers, structural components in the vehicle’s ‘greenhouse’ section and structural trims in the underbody area to protect the battery.” Compared to metal structures, thermoplastic composites are also said to be suited for integration of guides, holders and fasteners eliminating the need for manufacturing processes like deburring or post-process tapping. ACI www.autocomponentsindia.com

auto components india n july 2020

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