AUTO COMPONENTS INDIA MARCH 2022 by Next Gen Publishing Pvt Ltd

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Content

Cover Story

th Anniversary Special

Localising RideAssist Tech

Continental Automotive India is in sync with the disruptive shift to localised rideassist technology. Sumesh Soman toured the Manesar plant to see the on ground preparations, in line.

36 40 4

AUTO COMPONENTS INDIA // MARCH 2022

Tapping Revenue Streams With Higher Utilisation

Showing signs of recovery from the pandemic induced slowdown, MM Forgings is confident of growth with higher asset utilisation. Prateek Pardeshi links the recent performances with the vision to open up new revenue streams.

Tabled For Long-Term Growth

The Union Budget 2022-23 surprised a section with its focus on long-term growth. Ashish Bhatia looks at the allocations and implications for the auto components segment.

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march 2022

08 Newscast

l Funds infusion for IREDA l India partners Denmark to work on green

COMPONENTS

INDIA

VOICE OF THE AUTOMOTIVE SUPPLIERS

24 Mobilised Allison Transmission T280

hydrogen l Industry doyen no more l Phased Manufacturing Programme l GST reduction on EVs and chargers

26 Upfront

Refurbishing Industry Is Bouncing Back

l Exports spike; Imports grow marginally in 2022 l Sundaram-Clayton appoints R Gopalan on the Board l Bosch India investment l Semicon India Programme l New CoE at IIT-B l DEP awarded a patent for “ConceptWorks” l Hikvision India Onboard video systems l Vedanta and Foxconn Sign MoU l New Global Head for Lanxess lubricant additives l Servo Defrost l Turtle Wax India partners Car Sense l Capable Of Handling An Entire Supply Chain l Goodyear supports Western Force l Faurecia and Hella introduce FORVIA l Talent Deficit In Semiconductor Industry

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48 Special Reads

l Effective Contract Manufacturing Solutions l The Wonder Women

54 Micro-Market Invest In Rajasthan

58 Globescan

Influencing Tech

62 #Trendsmap AUTO COMPONENTS INDIA // MARCH 2022

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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, Prateek Pardeshi Sumesh Soman Asst Art Director Ajit Manjrekar Production Supervisor Dinesh Bhajnik Publisher Marzban Jasoomani Associate Publisher & 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) Regional Manager Rajesh Gogate (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

With all the makings of a case study for academia and businesses alike, it is a reiteration of the need to have in place, a plan B, that can be pressed in with agility to limit losses.

month back, who would’ve thought, the world would have to deal with the repercussions of a war crisis in the 21st century! The ongoing Russian invasion of Ukraine deemed as World War III is a stark reminder of what it takes to disrupt peace and harmony overnight. The large scale military conflict as an attempt at invasion is not a single such occurrence either. The degree of aggression and the humanitarian impact can be graded on different scales on a case-to-case basis. With all the makings of a case study for academia and businesses alike, it is a reiteration of the need to have in place, a plan B, that can be pressed in with agility to limit losses. This event, in particular, has hit the growth trajectory of nations including India that found themselves placed better off until recently, in their respective recovery cycles. Nearing two weeks of the conflict at this point and time, businesses are compelled to suspend production and trade in Russia. They are cutting production of vehicles by millions; chip manufacturers are diverting chips meant for Russia; re looking at supply chains to address new shortages like the wiring systems sourced from Western Ukraine; dealing with spike in metal prices and finding alternate import destinations for their energy needs. Not to forget the migration of homeless refugees seeking a haven to start all over again resulting in an uneven labour concentration. Ashish Bhatia Executive Editor | a.bhatia@nextgenpublishing.net /autocomponentsindiaofficial /autocomponentsindia ACI Mag /acimagazine

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AUTO COMPONENTS INDIA // MARCH 2022

Newscast

Funds infusion for IREDA A fund infusion of Rs.1500 crore was approved for the Indian Renewable Energy Development Agency Ltd. (IRDEA) by the cabinet. Besides claims of generating employment by direct creation of 10,200 jobs, it is deemed crucial to reduce the carbon footprint. Carbon equivalent emission reduction of an estimated 7.49 mn tonnes could be achieved on an annual basis. The move will help IREDA to lend Rs.1200 crores to the RE sector which in turn will facilitate the debt requirement of Renewable Energy (RE) . It is expected to support an additional capacity of 3500-4000 MegaWatt (MW). Set up in 1987 under MNRE, IREDA is Non-Banking Finance (NBFC) agency for the RE sector. This again is expected to boost the confidence of financial institutions (banks) to lend to the sector.

India partners Denmark to work on green hydrogen India and Denmark have agreed to work together on green fuels including green hydrogen. Under the aegis of a Joint Committee (JC) investment strategy for green research, technology and innovation were discussed. Climate and green transition as agreed upon in line with the Green Strategic Partnership - Action Plan 2025 had the two sides promote proposals for green fuels, including green hydrogen. Progress of ongoing projects was also reviewed.

Industry Doyen No More

The passing away of Rahul Bajaj, Chairman Emeritus of Bajaj Auto is a huge loss to the business community as a whole. Hailed for his contributions to commerce and industry, his demise marks the end of an era. Synonymous to establishing ‘Hamara Bajaj’ in the heart of every Indian, Rahul Bajaj was instrumental in forging the strategic two-wheeler cooperation between our two companies and was fundamental to KTM becoming a truly global player,” reminded Stefan Pierer, Chief Executive Officer, PIERER Mobility

AUTO COMPONENTS INDIA // MARCH 2022

AG. Bajaj was a great industrialist who built an empire on sound principles and leaves behind a legacy that makes India proud with a presence in several countries, read a statement from Kenichi Ayukawa, President - SIAM and Managing Director and Chief Executive Officer, Maruti Suzuki India Ltd. As a pioneer of the Indian automotive industry, he led the quest for quality and technology, standing for high integrity in business and as someone who stuck to his principles as per Venu Srinivasan, Chairperson, TVS

Motor Company. Dr Pawan Munjal, Managing Director of Hero MotoCorp called it a personal loss and expressed that late Rahul Bajaj inspired generations of young people in the country to turn entrepreneurs and contribute towards wealth generation. Your footprints on the sands of Indian business will never be extinguished, tweeted Anand Mahindra, Chairperson, Mahindra Group as tributes continued to pour in from different parts of the globe on the passing away of the Industry doyen.

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Newscast

Phased Manufacturing Programme The Ministry of Heavy Industries (MHI) through the Phased Manufacturing Programme (PMP) is looking to promote the indigenous manufacture of Electric Vehicles (EVs). This extends to assemblies, subassemblies, and parts, sub-parts, inputs

of sub-assemblies. It is understood that a graded duty structure will be crucial to attaining this objective in a phase-wise manner. PMP for hybrid/electric vehicles (xEV) parts will help firm up an effective date for the indigenousness of xEV parts.

GST reduction on EVs and chargers

Goods and Services Tax (GST) has been reduced on Electric Vehicles (EVs) and chargers in a bid to boost demand and in response to the impending industry demand. On EVs, GST has been reduced from 12 per cent to five per cent; on charging stations it has been reduced from 18 per cent to five per cent. With the backdrop of EVs covered under the Production Linked Incentive (PLI) scheme, the move comes as a big relief to the industry. In addition, the Ministry of Road, Transport, Shipping and Highways (MoRTH) has also advised the states to waive off road-tax on EVs. Out of the total EV pool of 966,363 vehicles, Uttar Pradesh leads the pack with 276,217 EVs followed by Delhi with 132,302 EVs. Maharashtra comes in at a distant 58,815 EVs and is expected to catch up.

AUTO COMPONENTS INDIA // MARCH 2022

The incentives will be availed under FAME-II. Under the FAME-II programme, an estimated 2.31 lakh EVs have been supported till February 01, 2022. This is by way of the demand incentive estimated to be valued at Rs.827 crore.

Exports spike; Imports grow marginally in 2022 The overall (Merchandise and Services) export in January 2022 is valued at USD 61.41 bn. This marks a 36.76 per cent spike on a Year-over-Year (YoY) basis in comparison to the same period last year (2021). It also marks a 38.02 per cent growth over January 2020. In comparison, imports grew at a marginal rate. Imports grew at 30.54 per cent over the same period last year and at 30.19 per cent in January 2022. Looking at commodities, it is learnt that exports of petroleum products grew by 95.23 per cent in January 2022 (compared to January 2021). Plastic exports grew by 32.16 per cent. Organic and Inorganic chemical exports grew by 25.84 per cent. Engineering goods exports grew by 24.11 per cent. Notably, iron ore exports de grew by (-) 56.51 per cent. Iron and steel exports grew by 27.73 per cent. Machine tools exports grew by 13.46 per cent. WWW.AUTOCOMPONENTSINDIA.COM

Newscast

Sundaram-Clayton appoints R Gopalan on the Board R Gopalan has been appointed as the Chairman of the Board of Sundaram-Clayton Limited (SCL). Having served as the NonExecutive Independent Director of the Company, Gopalan will take the new position effective from April 01, 2022. With

a vast experience of economic and financial administration of

the country given his long stints in the Ministry of Commerce and Finance, and the Manufacturing and Service sectors, Gopalan claims the company will provide invaluable guidance to the company going into the future. “His long value-

addition of leadership coupled with the vast experience will be helpful to chart a sustainable growth road map for SCL,” commented Venu Srinivasan, Chairman at the company. Srinivasan will continue as the Managing Director

designated as Chairman Emeritus effective the same period. The appointment of K Gopala Desikan as Director and Group Chief Financial Officer (CFO) in the rank of whole-time Director of SCL was also announced.

Bosch India Semicon India investment Programme Bosch Ltd. is looking at investing another Rs.2,000 crore in India over the next five years. It has invested ~ Rs.8000 crore over the past 10 years. Out of the new investment outlay, Rs.1000 crore are earmarked for the localisation of advanced automotive technologies and the rest for expansion of digital platforms like ‘Mobility Marketplace’ and ‘Mobility Cloud Platform’. With an internal forecast of every third new vehicle in the country being an EV, Bosch is evaluating opportunities that could arise from the development happening around the electrification of vehicles. Soumitra Bhattacharya, Managing Director, Bosch Ltd., and President, Bosch Group India, opined, “The Government plans to promote electrification in pursuit of incurring required capex in this domain will spur a robust ecosystem for EVs in India.” Bosch is confident of playing its part.

AUTO COMPONENTS INDIA // MARCH 2022

The Semicon India Programme is aimed at strengthening the electronic manufacturing ecosystem in the country. With a Rs.76,000 crore outlay, the programme approved by the Union Cabinet late last year has received five applications for semiconductor and display fabs. With an investment outlay of Rs.153,750 crore the applications involve Vedanta Foxconn JV, IGSS Ventures pte, Singapore and ISMC. The applications extend to 28 nm and 65 nm semiconductor fabs with an expected capacity of 120,000 wafers on a monthly basis. The projected investment stands at USD 13.6 bn. On Display fabs, the projected investment is USD 6.7 bn. SPEL Semiconductor Ltd., HCL, Syrma Technology and Vlenkani Electronics have registered under the semiconductor packaging scheme. Terminus Circuits, Trispace Technologies, and Curie Microelectronics have submitted under the Design Linked Incentive Scheme.

New CoE at IIT-B International Institute of Technology (IIT), Bombay last week inaugurated a Centre of Excellence (CoE) for e-mobility. Automotive Components Manufacturers Association (ACMA), President, Sunjay Kapur, hailed it as a “huge step forward in terms of a joint effort as an Industry and Academia collaboration, which is extremely important in today’s disruptive scenario.” Citing that emobility in two and three-wheeler segment will reach a crucial milestone given that the market has responded positively to the efforts for a sustainable future, he opined, the new CoE comes as an important addition to the contributing ecosystem. The interconnection of service and non-service enterprises and business emerging as a result also found a mention on the sidelines of the virtual launch. WWW.AUTOCOMPONENTSINDIA.COM

Newscast

DEP awarded a patent for “ConceptWorks” Detroit Engineered Products (DEP) creators of the MeshWorks, an integrated CAE platform has been awarded a patent by the United States Patent and Trademark Office (USPTO) for its automated modelling tool, ConceptWorks. With this solution, engineers can easily bridge the gap between modelling design and analysis, which helps in optimising the model with reduced time and lesser effort. ConceptWorks helps

users to redefine the concept modeling phase by allowing CAE engineers to efficiently produce concept members for design and optimisation studies. With ConceptWorks, drastic design transformations are made immediately at the CAE level. As a CAE tool for structural engineers, ConceptWorks enables the creation of structural members and joints without using the CAD software, allowing engineers to focus on their core competencies. “We

are pleased that the US Patent Office has yet again recognised the uniqueness of our automated modeling tool ConceptWorks,” said Radha Krishnan, Founder & President, DEP on receiving the patent. “MeshWorks differentiation from its competitors is bolstered by the patent, which gives the company a longterm competitive advantage in the CAE market. We are very pleased with the positive response for ConceptWorks in the market,” he stated.

Hikvision India Vedanta & Onboard video systems Foxconn Sign MoU

The World Health Organisation (WHO) in a statistic drew attention to an estimated 1.3 million people who die each year due to road accidents. Hikvision is claimed to have developed the mobile onboard video system to improve vehicle security in a range of methods. These include everything from reliable footage recording to route deviation or speeding alarms, as well as emergency alerts and analysis of abnormal driving behaviour. The technology provides real-time awareness for safe driving by offering 360° video coverage both inside and outside the vehicle. In the event of a traffic collision, video footage is securely recorded and archived, and it can be utilised as forensic evidence. It also generates insights, such as passenger flow on a public bus, so that passenger distribution can be improved to optimise passenger comfort. Hikvision’s onboard video security system ensures that typical type of vehicles are well protected, especially commercial vehicles such as school bus, trucks, taxis and ride-hailing cars.

AUTO COMPONENTS INDIA // MARCH 2022

Vedanta and Hon Hai Technology Group, Foxconn announced the signing of a Memorandum of Understanding (MoU). A Joint Venture (JV) company as a result will manufacture semiconductors in India. According to the MoU, Vedanta will hold a majority equity stake in the JV. The JV company will be led by Vedanta Chairman, Anil Agarwal. The targeted project that intends to invest in the production of semiconductors will be based out of a plant located as per a chosen destination chosen discussion with the select state governments. The collaboration between Vedanta and Foxconn comes in the wake of the Indian government’s recent policy interventions like the PLI scheme which extend to automotive electronics and incentivises organisations to develop the ecosystem as a whole. WWW.AUTOCOMPONENTSINDIA.COM

Newscast

New Global Head for Lanxess lubricant additives After a brief work-in period, Neelanjan Banerjee will take over as the next Global Head of the business unit Lubricants Additives at Lanxess Corporation, the USA on July 01, 2022. Since August 2018, he has served as the Region Head, Vice Chairman, and Managing Director for Lanxess India Pvt. Ltd. He also served as an Executive Director since

2009. In his 16 year stint with the company, he held various responsibilities in the executive ranks. The business unit of lubricant additives, headquartered in Shelton, USA offers a wide range of products for all lubrication applications. Martin Saewe the predecessor, will move modelling group initiatives in e-mobility

Servo Defrost The latest product from IndianOil Corporation Ltd. (IOCL), ‘Servo Defrost’ is claimed to be an efficient defrosting and de-icing fluid that will aid in melting ice and snow on windshields during the harsh winters. Servo defrost also prevents formation of ice on the windshields, and is claimed to be nonreactive to rubber and plastic sub-assemblies found on windshields. It is also noncorrosive to metal parts, allowing drivers to drive with enhanced vision. The new product can also be used on window panes, wipers, window lenses besides in aviation on grounded aeroplanes. Launching the product, S M Vaidya, Chairman, IndianOil, said, “This unique offering would significantly ease the life of vehicle drivers and owners in Himachal Pradesh, Jammu & Kashmir, and Ladakh. I am proud to share that the efficacy of Servo Defrost is proven, and this is the first Indian product to be launched to cater to this niche need.” Further commenting on commercial customers, V Satish Kumar, Director (Marketing), IndianOil, said “Servo defrost will not only aid local populace but will also be helpful to commercial and institutional customers operating at high- altitudes in sub-zero temperatures.” Servo defrost will be available in convenient 500 ml packs with a spray nozzle for easy application. It works in ambient temperatures up to (-) 15 degree Celsius.

AUTO COMPONENTS INDIA // MARCH 2022

and circular economy. He succeeds Philipp Junge, who has headed the group initiative since its inception in August 2020. Namitesh Roy Choudhury, who is currently the Executive Director of Lanxess India and the Head of the Production, Technology, Safety, and Environment Group function, will succeed Neelanjan Banerjee

as Country Representative and Managing Director effective July 01, 2022.

Turtle Wax India partners Car Sense Turtle Wax India has tied up with Car Sense to strengthen its position in Chennai. It has launched a co-partnered all-new car care studio in Chennai offering detailed services exclusively with state-of-the-art, easy-to-use Turtle Wax® products for the southern part of the country. Designed to meet the taste of car enthusiasts, the studio is equipped with ultra-modern Turtle Wax® technologies and a team of highly qualified and trained service personnels. Customers will enjoy the professional results delivered by services like ‘Hybrid Solutions’ and ‘Hybrid Solutions Pro’ with patent-pending graphene technology at the new studio, as per company claims. Some of the other services to be offered at the studio includes ceramic coat protection, hybrid ceramic coating, exterior restoration treatment, interior detailing treatment, speciality treatment and the 45-minute wash. WWW.AUTOCOMPONENTSINDIA.COM

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Newscast

Capable Of Handling An Entire Supply Chain

Secretary of Micro, Small and Medium Enterprises (MSMEs) lauded the MSMEs for the capability. Expressing confidence in MSMEs being capable of handling the entire supply chain and ensure a seamless integration into the global valuechain, B. B. Swain, at the inaugural session of the MSME conclave, drew attention to the manufacturing cost advantage that Indian MSMEs bring to the table. For high growth, he called for putting in place credit assistance and technology up gradation. He cited an important statistic as per which 29 per cent of 67 lakh MSMEs engaging in the manufacture of engineering goods. He further drew attention to a diverse range on offer, from intermediate to final products which strengthened his conviction. MSMEs, said Swain, contribute to 30 per cent of India’s GDP and 50 per cent to exports. As per the National Manufacturing Policy, the target for manufacturing output is set to 25 per cent of the GDP. EEPC was lauded for its efforts with 60 per cent members belonging to MSME. A knowledge paper ‘Integrating Indian MSMEs’ was released at the conclave too. The paper, said to promote value-addition in the

AUTO COMPONENTS INDIA // MARCH 2022

country, is learnt to advocate a low general tariff on raw materials and primary goods. It advocates a slightly higher tariff on intermediaries with the highest tariff deemed fit for application on final products. The paper also recommends a neutral, direct and indirect tax structure sans any discrimination on the basis

of the nature of firms. Banks and financial institutions were urged to discern genuine exporters and asked to demand less collateral. On policy, stability in measures and a lower intervention was sought at the forum. Emphasis on neutrality, from the Government’s end, was also deemed critical.

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PRODUCT PORTFOLIO Leaf Spring l Parabolic Spring l Air Bellow l Clutch System l Braking System l U-Bolt l Spring Pin l Bush l Centre Bolt l Hanger-Shackle l Water Pump

Newscast / international

Goodyear Tire and Rubber supports the Western Force partnership The Goodyear Tire and Rubber Company has announced their backing of the Western Force by becoming a major partner for the 2022 Super Rugby Pacific season. The company joined the Force family last year as an official partner. Following a successful season together, Goodyear signed on for a second straight year with the club. The company has been operating for over 120 years and now has 55 facilities in 23 countries. “Having enjoyed a historic year together in 2021, it’s fantastic to see Goodyear increase their support of the club and rugby in Western Australia (WA),” said Tony Lewis, Chief Executive

Officer of the Western Force. “As an organisation, we want to build on the strong foundations set last year, so

it’s great to have our ambitious vision for growth shared by our partners in 2022,” he expressed.

Faurecia and Hella introduce new Group entity FORVIA Following the successful completion of Faurecia’s acquisition of a controlling stake in Hella, the two companies unveiled FORVIA, the newly combined Group entity name. FORVIA derived from resolutely looking FORward and committed to drive the mobility transition on roads or VIAs entails the movement and the necessary agility as well as the newly combined Group’s commitment, confidence and action. The vision of the future is built on four pillars : safety, sustainability, advanced solutions and customised experiences. Commenting on the new launch, Patrick Koller, Chief Executive Officer of Faurecia, said,”This new Group represents 150,000 talented individuals across more than 40 countries inspired

AUTO COMPONENTS INDIA // MARCH 2022

by one vision, speaking with one voice and working as one team.” Further Rolf Breidenbach, Chief Executive Officer of Hella said, “FORVIA captures

the close cooperation between Faurecia and Hella efficiently. At the same time, Forvia is a clear signal of a new start into a common future.” WWW.AUTOCOMPONENTSINDIA.COM

Newscast / international

Addressing Talent Deficit In Semiconductor Industry To Attain Higher Outputs There is a great emphasis on localising semiconductors the world over amidst the wafer shortage crisis hitting the supply-side of the business hard. The industry, it is learnt, despite demand in select segments, is not in a position to meet its obligations with the waiting time lines having to be extended. Some might say, it is not the best time for a purchase. With this backdrop, a recent ‘104 Bank Job Survey’ on talent shortage in the semiconductor industry has come out with interesting statistics. As per the survey, the semiconductor industry faced a shortage of 34,000 people per month. In a case study, Taiwanese market faced its most severe shortage in the fourth quarter in about seven years. As

AUTO COMPONENTS INDIA // MARCH 2022

per the survey, October-December, 2021, due the shortage of people, there were 3.7 offers per job seekers in December 2021, compared to 2.6 offers in December 2020. The number was 2.3 a year ago (December 2019). In comparison, across all job sectors, the offers stood at 1.7 per job applicant, up from 1.3 offers in December 2020 and 1.1 per applicant in December 2019. This is despite, the market, in comparison to India, having dedicated semiconductor institutes such as the National Taiwan University, National TSing Hua University, and National Cheng Kung University. Notably remote learning since the emergence of Covid19 has also seen an increase in demand for electronic devices, among emerging

technologies like electric vehicles, 5G applications and artificial intelligence. In other regions, Netherlands is looking to hire 4000 people worldwide including 1000 from Taiwan alone. US based companies are also looking at Taiwan to plug the void. As per HR consultancy Intelligent Manpower Corp, the annual wages of graduates from top schools has also seen a sharp rise from NTD 1.6 mn to NTD 2 mn (USD 57,554 to USD 71,762) which represents a one-third rise compared to pre-Covid19 levels. Taiwan is expected to witness a 17.7 per cent hike in total out, from NTD 4.08 mn to NTD 4.80 mn. The global semiconductor industry is expected to witness a 8.8 per cent hike in output.

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Statement about ownership and other particulars about AUTO COMPONENTS INDIA, as required to be published in the first issue of every year after the last day of February. Form IV (See rule 8) (Press and Reg. Of Books Act, 1867) Place of Publication : 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Periodicity of Publication : Monthly Printers Name : Mr. Marzban Jasoomani, Nationality : Indian, and printed at Uchitha Graphic Printers Pvt. Ltd., 65, Ideal Industrial Estate, Mathuradas Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400013, India. Publisher’s Name : Mr. Marzban Jasoomani, Nationality: Indian, Address: Next Gen Publishing Pvt.Limited, 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Editor’s Name : Ashish Bhatia, Nationality: Indian, Address: Next Gen Publishing Pvt.Limited, 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Names and addresses of individuals who own the newspaper and partners or shareholders holding more than 1% of the total paid up equity capital: 608, Trade World, 6th floor, C wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.

Details of shareholders of Next Gen Publishing Pvt.Limited who are holding more than 1% paid up equity capital of the company as on January 31, 2022. i. Shapoorji Pallonji & Company Pvt Limited, 70, Nagindas Master Road, Fort, Mumbai 400023 ii. HDFC Limited, 5th Floor, Ramon House, H. T. Parekh Marg, Backbay Reclamation, Mumbai 400 020 iii. Rajpal Singh Sethi, Green Gate, 693, Flat 702, Perry Cross Road, Bandra, Mumbai 400 050 iv. Zubin N. Kamdin (Executor of Estate of late Sam Nariman Polishwala), 29/A, Naoroji Seth Street, Thakurdwar, Mumbai 400 002 v. Aditya Chitale-(Executor of Estate of late C.N.Mistry), F-19,0-1, Bridge View C.H.S.Ltd., Sector-10, Airoli, Navi Mumbai 400 708 vi.Hoshang Billimoria, B-221, Grand Paradi, 572, Dadyseth Hill, August Kranti Marg, Mumbai 400 036

I, Marzban Jasoomani hereby declare that all particulars given above are true to the best of my knowledge and belief.

Date: February 14th, 2022

Sd/ Marzban Jasoomani Signature of the Publisher

Mobilised

Allison Transmission T280 Allison Transmission recently powered a fleet of 100 buses with the T280. Sumesh Soman looks at the automatic transmission in greater detail.

he first automatic transmission can be traced back to the 1920s when Alfred Horner Munro, a Canadian steam engineer, is known to have designed the first automatic transmission. Designed in 1921, he patented the transmission in 1923. Here, the planetary transmission was hailed as a crucial development aiding in the arrival of automatic

transmissions. Fast forward to 2021, the already reliable gearboxes continue to evolve with tier1 suppliers like Allison Transmission playing their part with aplomb. Recently, the Allision T280 automatic transmission made it to a fleet of 100 buses in a testimony of its proven performance. “The highlight of the fully automatic transmission is that

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AUTO COMPONENTS INDIA // MARCH 2022

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Mobilised Key Specifications Physical Parameter

Basic Model

With Retarder

Installation Length

738 mm

Dry Weight

243 kg

279 kg

Depth below transmission

274 mm

328 mm

centreline (Shallow Oil Sump) Depth below transmission centreline (Deep Oil Sump) Anshul Gupta, Commercial Director, Allison Transmission India.

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fleet owners can experience a greater overall economic value with reduced downtime and the ability to get more work done. We are delighted to share that all low-floor CNG buses in Delhi NCR, over 4,500 currently in operation which are from leading OEMs in India, trust Allison units,” said Anshul Gupta, Commercial Director, at Allison Transmission India. The transmission is claimed to be equipped for applications up to ~260 hp (194 kW power ) and up to 1000 Nm of gross input torque. The basic application it finds a marriage with includes city buses and tour coaches. The drivetrain interface that idles at around 500-800 rpm, gives a maximum output of 105 kmph at 3600 rpm and is said to cruise at 1950-2800 rpm on a fully loaded engine. The dry weight of the unit is about 243 kg. Here the base model installation length is 738 mm which is also made available with a retarder. This inclusion increases the dry weight by 36 kg. The Allison T280, a fully automatic transmission comes with claims of the torque converter experiencing very little wear and the transmissions require only periodic fluid and filter changes to maintain a peak performance. Manual transmissions and AMTs both are known to rely on a clutch that eventually burns out and requires more downtime for maintenance. With the Allison Torqmatic® Series especially designed

for city buses, it is claimed to further reduce downtime by increasing the brake longevity.

q Increased driver control and passenger comfort

On Indian roads which have all kinds of vehicular and non-vehicular movement, the buses equipped with Allison’s fully automatic transmissions such as the T280 are claimed to be easier to drive. Drivers benefit from precise handling and improved comfort. Once behind the wheel, drivers are more alert and in tune with the vehicle, leading to increased driver retention and better safety records. When factoring in life cycle costs, including decreased maintenance and increased productivity, an Allison transmission-equipped vehicle is claimed to offer a lower Total Cost of Ownership (TCO) than a comparable, competitively equipped vehicle. Designed to deliver reliability and durability while helping to protect the vehicle drive line, the torque converter of the transmission is said to multiply engine torque, and deliver the required power to the wheels. By multiplying the engine power, drivers are expected to gain faster acceleration, operational flexibility and increased productivity. The Allison T280 is claimed to outperform manual and AMT units found to lose power and torque with every shift, resulting in wasted fuel and time. ACI AUTO COMPONENTS INDIA // MARCH 2022

Upfront

Refurbishing Industry Is Bouncing Back In an upfront conversation, Ketan Girap, General Manager, Key Account Business Unit, Nippon Paint India Automotive Refinishes, speaks to Ashish Bhatia on the refurbishing industry as a whole bouncing back.

AUTO COMPONENTS INDIA // MARCH 2022

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upfront Q. At the business end of the FY2022, what is the outlook for automotive coatings across segments from a short to medium-term perspective? A. With the Covid-19 situation improving, accompanied by a favourable market scenario across the automotive sector and the government’s thrust to infrastructure and Electric Vehicles (EVs), the market for automotive paints is expected to observe a decent growth in demand. We expect to reach the pre-pandemic levels in terms of business value. From a long term perspective, we see a lot of positive trends due to various policies such as the new scrap policy and the changing market dynamics. As Covid19 ebbs and normalcy is restored, India’s automotive paints industry is poised to bounce back. As per recent industry estimates the Indian automotive paints and coatings market is expected to grow at a Compounded Average Growth Rate (CAGR) of over 30 per cent during 2021-26.

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Q. Your take on the aftermarket for paint and consumable solutions? A. India’s automotive industry has experienced a sharp rise in the sale of used or second hand vehicles. During the past couple of years, the second-hand market has taken a driver seat and is in fact expected to exceed the new car sales in a few years. As per a recent industry report, the used car market in India is expected to reach a volume of a whopping 70 lakh units in 2025-26, from 38 lakh units in 2020-21. This sharp growth across the used vehicle segment will further trigger the growth of automotive paints and consumable solutions as well.

Q. What is the outlook for industrial coatings for the coming years? A. The ongoing exodus of companies from China provides a once in a lifetime opportunity for developing markets like India to emerge as a major hotspot for investment and for setting up their manufacturing bases. Owing to the availability of cheap labour, land and investment-friendly policies, the industrial segment in the Indian subcontinent is poised to experience an upswing in the coming years. We have already witnessed several companies shifting their base from China to India especially a lot of OEMs and EV manufacturers causing a “ripple effect” across India’s industrial coating market.

AUTO COMPONENTS INDIA // MARCH 2022

Upfront

As per recent industry estimates the Indian automotive paints and coatings market is expected to grow at a Compounded Average Growth Rate (CAGR) of over 30 per cent during 2021-26.

Q. What would be the capex earmarked for India/Group level for automotive and transportation segments? A. Nippon Paint has invested deeply in the Indian market in all paint sectors including decorative, industrial and auto refinish. We are in India for the long term, not only to cater to the domestic market but also to develop

exports from India. In this regard, we will be making investments in capacity building, technology and other fields as necessary. Q. How do you expect to benefit as an ecosystem from the PLI scheme? How do you react to approvals granted under the scheme? A. The recently introduced Production Linked Incentive (PLI) scheme for the auto sector will play a substantial role in strengthening India’s automotive paints and industrial coatings ecosystem. The scheme will help to de-risk the existing supply chains and will further help India to emerge as a world-class automotive manufacturing base. This will surely have a positive impact on India’s automotive paints and coatings market. This will further help to create a vibrant and competitive ecosystem. The scheme will also help to generate an increased number of employment opportunities for India’s young population giving them an opportunity to learn new skills and become contributing members of the economy. Looking at the ongoing exodus of OEMs from China, the introduction of the PLI scheme has emerged as a great enabler for attracting these OEMs to India, hence turning India into a hotspot for automotive manufacturing. But it will take some time to comprehensively realise the impact of the scheme on the economy and especially on the automotive refurbishing business. Q. How have you as a company added efficiencies in your

AUTO COMPONENTS INDIA // MARCH 2022

supply chain both upstream and downstream? A. Nippon Paint is closely working with various OEMs and over time we have understood the needs of respective production lines and devised solutions that will help optimise best in the class manufacturing process. We are closely working with product managers on the assessment of line plans and thus providing paint and painting solutions that assist with just the right stocking and time deliverable. The overall ecosystem is designed to enable raw material procurement to feed paint production and move them to warehouses which is a feeder to various end customer production lines and retail outlets. Q. How is the product portfolio adapting to new trends from lightweighting to e-mobility and new benchmarks being set on fit and finish? A. Delivering technology-based, green, productive and efficient solutions are the values that have been thoroughly embedded in our DNA here at Nippon Paints, thus our motto of being “Paint Process Specialists”. Being one of Asia’s most reputed automotive refurbishing companies, we always strive to deliver products that are productive/efficient and overall adds value to our customers. Here at Nippon Paints, we have an extensive and complete range of products and solutions crafted to fulfil the needs of the customers. Apart from the existing traditional products, our product portfolio includes WoW primers, DTM’s, Fastest drying Clears, CyGlaz technology which is self-healing and offer a mirror-like finish. Our WoW systems are known throughout the ecosystem for offering higher productivity than the conventional system which in turn saves cost as well improves productivity. We will soon be launching a DTM system for our customers which will further enhance the overall cost structure, improve productivity giving a better Return on Investment (RoI) for any organisation. WWW.AUTOCOMPONENTSINDIA.COM

Upfront Q. In line with these, how are you upskilling your key stakeholders? For instance, the initiatives in Tamil Nadu and Karnataka? A. Here at Nippon Paint, we place a high priority on serving the best interests of society and those who are associated with us. Our commitment runs much deeper than simple philanthropy and charity. We firmly believe that skilling and re-skilling those who are associated with us are key towards not only ensuring the organisation’s growth but also the overall growth of the entire painter community. We have incorporated several programs to address this and one such example is the SEN program, which is a pan India program targeted towards enhancing the living standard of our painter community. We were the first automotive company in India that initiated a program solely dedicated to the uplifting of painters by providing them with better growth opportunities. We are also planning to launch initiatives that are focused on generating funding opportunities for the painters so that they can move up the value chain by opening up their own garages. Upskilling them by introducing better products which would not only help to make their jobs more streamlined but will also help to increase their overall income. Q. A word on the industry-academia collaboration concerning R&D initiatives at the Group/company level. A. We are exploring such potential tie ups with reputed academic institutions. Our R&D centre in Manesar is a global facility and focused on various key international projects. Developing synergistic ties with the scientific community and academia in India is part of our plan. Q. How far have you come on the cradle-to-cradle approach of sustainable development? A. We are walking the talk on WWW.AUTOCOMPONENTSINDIA.COM

sustainability. As we enter 2022, we at Nippon Paint are setting new goals to build a more sustainable business while keeping our customers at the core of everything we do. With ever-increasing environmental awareness, Nippon Paint is proud to take on the responsibility of being environmentally friendly. We have recorded major achievements in cutting down pollution, reducing energy consumption and minimising waste. Nippon Paint stays committed to the protection of the environment in every step it takes − from product development and manufacturing to work procedures. In terms of coatings, we are championing the concept of ‘Green Efficiency’. Coatings that are green don’t have to be less efficient. With this concept in mind, we are promoting our waterborne paint along with low VOC series of ancillary products and offering it to more and more customers. Q. How have you tackled the commodity price hikes and balanced them with the need for stricter compliances that add to opex? A. We have tried to tackle the commodity price hikes by accelerating our efforts to localise supply chains, develop new product formulations and use alternative raw materials. Only when no other choice remains do we resort to price increases. Our

We have tried to tackle the commodity price hikes by accelerating our efforts to localise supply chains, develop new product formulations and use alternative raw materials. Only when no other choice remains do we resort to price increases.

margins are under tremendous pressure, and we naturally keep stronger control over our overheads. The pandemic has taught us a lot and we remain committed to being frugal, agile and lean. Q. To sum up, what are your growth areas and challenge areas for the foreseeable future? A. Covid19 is arguably one of the biggest challenges for the industry so far owing to its unpredictable nature. Except for the significant downfall in the sales of automobiles due to semiconductor shortage supply-related constraints is also a significant hurdle within the growth trajectory of India’s automotive refurbishing industry. But the good news is the overall rise in middle-class income and young population accompanied by positive policy interventions such as the PLI scheme, scrappage scheme etc. and the increased adoption of EV vehicles, India’s automotive refurbishing industry is poised to flourish in the coming years. ACI AUTO COMPONENTS INDIA // MARCH 2022

Cover Story

Localising Ride-Assist Technology Continental Automotive India is in sync with the disruptive shift to localise ride-assist technology. Sumesh Soman toured the Manesar plant to see the on ground preparations, in line.

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AUTO COMPONENTS INDIA // MARCH 2022

ocalised technology setups have been the ask for a while now. It’s the pace of execution at Original Equipment Manufacturers (OEMs) that’s attained newer heights. Government interventions like the Production Link Incentive (PLI) scheme under the ‘Make in India’ program umbrella have made it all the more lucrative. The resultant incentives extended to Advanced Automotive Technology (AAT) has had companies file for eligibility with 20 Champion OEMs granted approval, and the tier supplier approvals expected to follow suit. While the approvals come only now, at Continental Automotive India (Continental) the pro-active work on this road map has begun to

fructify as evident from our visit to the company’s Manesar plant, in Haryana. Any reduction in Costs of Goods and Services (COGS) is a win-win for stakeholders as per Krishan Kohli, Head of Vehicle Dynamics (VED) and Hydraulic Brake Systems (HBS) at the company. “For the brakes business, I think there is a large amount of localisation that has already been done. In the case of hydraulic brakes, it is northwards of 70 per cent, and for electronic brakes, it is to the tune of 50 per cent,” he revealed. “We are right now working to increase the child parts for callipers and drums and aim to increase the per centage further aimed at boosting the competitiveness

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Cover Story and sustainability in the market for the company,” averred Kohli. Continental, caters to a majority of tier1 OEMs in delivering parts and products, for both two- and four-wheelers, he informed.

He further added, “The company stays committed to the market in terms of making investment and having a strong growth vision for the two-wheeler and four-wheeler segments alike.

q Degree of localisation

Localisation is at the core of Continental’s India strategy. In an end-to-end value creation attempt, from R&D to Production, and Sales and Marketing, it

Tech Focus Optimised Curve Braking (OCB)

OCB helps riders apply the brake on curves or turns where there is a high tendency of fall due to a wheel lock. The ABS system takes the angled position of the motorcycle (using lean angle information from the continental sensor box) into account. Depending on the incline, the ABS control becomes highly sensitive to prevent wheel lock while providing good braking and steering, thereby improving vehicle handling in curves, making the braking process safer.

Traction Control System (TCS)

TCS helps reduce the tyre slip on the driven wheel on slippery roads and surfaces while accelerating. It helps to accelerate and manoeuvre efficiently and adequately making the ride safer. It uses the wheel speed sensor information to monitor the rear wheel spin, for example, if it’s spinning faster

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than the front wheel. Once the speed difference is sensed, the TCS helps to reduce the engine torque on the spinning wheel. Thus, limiting the chance of slipping or skidding.

Electronic Drag Control (EDC)

EDC helps to control the excessive wheel slip caused due to engine drag torque and thereby increasing vehicle stability. EDC tends to realise the best balance between vehicle stability and deceleration in engine drag situations by controlling vehicle drag torque and therefore the propulsion at the wheel appropriately.

Front Lift Protection (FLP)

FLP helps to protect the vehicle from backward rollover and fall because of excessive drive torque. It monitors the wheel behaviour to detect a lift-off situation and quickly adjust engine torque. Thereby ensuring the right

propulsion at the wheel to stop backwards roll over and fall.

Motorcycle Hold & Go (MHG)

MHG helps the rider to hold the bike uphill or downhill without having to continuously hold the brakes. This enables the rider to relax, work on navigation or maps, take calls, etc. It is activated by a special hand lever application by the rider thus indicating the system to lock the front wheel. Maintaining optimal tyre pressure is crucial for the safe riding and braking performance of two-wheelers. The Tyre Pressure Monitoring System (TPMS) measures the tyre pressure using a sensor. It transmits the reading and displays it to the rider. Continental Deflation Detection System (DDS) is designed to work without sensors and provide rider alerts in case of a critical situation.

AUTO COMPONENTS INDIA // MARCH 2022

Cover Story was way back in 2016, that Continental set up assembly lines in Gurugram to assemble Antilock Brake Systems (ABS) and Electronic Stability Control (ESC) systems for two-wheelers and fourwheeler (passenger cars). In 2018, the technology company set up production for ABS and ESC Electronic Control Units (ECU) at its Bengaluru plant. In the subsequent year, the company achieved a production milestone of one million ABS and ESC ECUs at the plant. In 2020, Continental reached a milestone of 50 million Wheel Speed Sensors (WSS) at its Manesar plant as a testimony to the

growing localisation per product in the overall mix. ll of these, as per Kohli, are a direct result of constant innovations aimed at producing technologies driven by local market requirements backed by a capable R&D setup. Continental’s ‘MiniMAB’ product (one-channel ABS) is developed for smaller motorcycles and scooters as a testimony of the company’s focus on localisation too. The system prevents the front wheel from locking up, thus helping to prevent crashes or any instability in the vehicle. This is also effective in combination with a mechanical drum

brake on the rear wheel. MK100MAB product (two-Channel ABS) enhances safety by preventing both front and rear wheels from locking up on vehicles that have disc brakes on both the front and rear wheels. MK100 MAB product (two-Channel ABS) enhances safety by preventing both front and rear wheels from locking up on vehicles that have disc brakes on both the front and rear wheels. MK100 MIB product (two-channel ABS with Integral Brake Function) provides higher safety and comfort features like Motorcycle Hold & Go (MHG), Adaptive Cruise Control (ACC)

Advanced Rider Assistant Systems (ARAS) for Two-Wheelers Blind Spot Detection (BSD)

BSD monitors blind spots for the rider on the adjacent lanes with a radar sensor and can provide visual warnings to the rider in case of any approaching vehicles. As an enhancement, this system can also indicate hazardous lane changes through the Lane Change Assist (LCA) feature. Rearwardfacing radar sensors scan the road area behind and adjacent to the motorcycle, signalling a warning when a lane change is not recommended.

AUTO COMPONENTS INDIA // MARCH 2022

Forward Collision Warning (FCW)

FCW alerts the rider by giving a visual warning when the system detects a high risk of a collision with the vehicle in front by using a front radar sensor.

Adaptive Cruise Control (ACC)

ACC enables motorcyclists to have a more relaxed and safe riding experience for long journeys. This intelligent function always ensures a safe distance to the vehicle in front offering a smoother ride. It detects

relevant objects in front of the vehicle by a radar sensor, even when riding in an inclined position. It performs an automatic correction of the motorcycle’s speed.

Emergency Brake Assist (EBA)

EBA is one such technology, which takes the FCW a step further, indicating the need for an appropriate action. The system detects an imminent collision with a vehicle ahead or with an obstacle. It first warns the rider and then supports the rider by initiating the braking manoeuvre.

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Cover Story and Emergency Brake Assist (EBA). The company currently employs more than 192,000 people in over 58 countries.

q Shopfloor sojourn

With over a decade of presence in the Indian market, Continental operates across 14 locations with seven plants, a large tech centre in Bengaluru. Its workforce includes an estimated 8,000 people that form the backbone of its vision to meet the objective of tech localisation. The plant is fed by a warehouse that can hold up to 2500 pellets. Interestingly, the single-channel ABS line is controlled by women and impresses with its output of over 800,000 units annually. The shopfloor is digitised to the extent of being paperless with critical metric being relayed on handheld tabs and common screens built on a sustainable and highly efficient On interacting with the Plant Manager, Continental Automotive Brake Systems Ltd., Anudeep Garg, it was learnt that the assembly line rely on an elimination protocol. As per the protocol, a defective part won’t make it to the next bay as the entire system is wired to segregate faulty parts and eliminate their participation further in the process. Garg, drew attention to the shopfloor also being temperature sensitive wherein each personnel is cleansed before entering. A machine is tasked with neutralising any static charge that one carries on self. “This, in turn, helps the shopfloor, produce efficiently, helping to avoid any untoward incidents,” he pointed.

the Continental set-up. “The company believes in ‘Vision Zero’ and is working towards it. It essentially means zero accidents, zero injuries and zero fatalities,” expressed Kohli. Citing the progress made on active safety systems like the Anti-Lock Braking System (ABS) and Combined Braking System (CBS), and passive inclusions like ride modes and other sensor developed safety nets, Kohli drew attention to the rider community, graduating to bigger bikes and with it creating a pull for advanced rider safety features. “A performanceoriented class of riders will demand better safety features and soon we can expect these in the market,” he opined. Continental is working with multiple OEMs, both at home and abroad, collaborating to test out these safety features. Kohli expects the ARAS functions to be mandated in the twowheeler market over the next couple of years. The features like hill hold assist, rear lift protection, optimised

curve braking will make it to markets soon, he mentioned. Of the firm belief that OEMs are responding to the pull for safety features with Continental products expected to enter the market ahead of mandates requiring OEMs to do so, one can expect OEMs to soon wanting to integrate these into their vehicle. This is organic, quipped Kohli. On the price sensitivity associated with the Indian market, Kohli explained, “People look at two-wheelers as the cheapest mode of transport here and advanced safety features are seldom a factor when it comes to a common two-wheeler buyer.” Admitting to the segment witnessing a substantial hike due to higher input costs, Kohli expects the rollout of advanced technology to be a little delayed than anticipated pre-Covid19. When the time is ripe, Continental, concluded Kohli, will be ready to bear the fruits of localisation and align with the future foresight as envisioned. ACI

q Active and passive safety

The Advanced Driver Assistance Systems (ADAS) feature is boasted quite highly by global OEMs (in cars and commercial vehicles). The twowheeler counterparts are not far behind, asserted Kohli. Advanced Rider Assistance Systems (ARAS) here found an important mention. The Manesar plant is learnt to play a crucial role in WWW.AUTOCOMPONENTSINDIA.COM

AUTO COMPONENTS INDIA // MARCH 2022

Upfront

Committed to India In an upfront conversation, Krishnan Kohli, Head of Vehicle Dynamics (VED) and Hydraulic Brake Systems (HBS) at Continental Automotive India speaks to Sumesh Soman on localisation and India commitment.

AUTO COMPONENTS INDIA // MARCH 2022

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Upfront Q. What are the localisation efforts at Continental Automotive India? A. Continental has been in the Indian market for over a decade now. And we have a presence across 15 locations where we operate nine plants. There is a large tech centre we have in India, and upwards of 4,000 plus people supporting all the business units we like to call a configuration business unit. I am directly responsible for two business units. And then we also have both the support for the regional markets and the export markets. For example, we support Japan using the R&D Engineering team sitting out of Bengaluru. We are leveraging the talent here. It is part of the competency building strategy. We are committed to India where we are invested heavily. For the brakes business, I think there is a larger localisation in the case of hydraulic brakes. It’s upwards of 70 per cent and then the three product technologies that we have are actuations. We also have drum brakes and callipers that we briefly saw in the plant tour for the electronic brakes, which is ABS and ESC. There are three such assembly lines we have and we are working towards increasing the localisation of child parts to drive competitiveness and sustainability in the market. We have a strong growth vision both on the two- and four-wheeler market. So partially, I would also like to credit the government’s focus on the legislation on safety. But within continental

We are leveraging the talent here. It is part of the competency building strategy.

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Optimised Curve Braking (OCB) is required especially for the curve riding and the Rear-wheel Lift-off Protection (RLP). Drawing from the fourwheeler safety, the two-wheeler market is also gearing up to focus on cyber security and advanced rider assist functions like blind-spot detection, traffic signal alerts and adaptive cruise control function besides multiple lane change assist functions.

too, we have defined a ‘Vision Zero’. We want to drive zero fatalities, zero injuries, and zero accidents. Q. What are the upcoming safety regulations that you are focused on? A. Specific to two-wheelers, over the last couple of years, we did see a lot of focus from the government and the OEMs. And then players like us feel there is a whole ecosystem which has to work hand in hand. And that’s the reason I’m picking the key pillars and counting them as part of the ecosystem. In April 2019, the Government of India put in a regulation of ABS getting into the 135 cc and heavier than the 125 cc twowheelers. There was also a regulation in tandem on CBS. ABS was legislated in April 2019, thereafter in 2020 onwards, the government has been

driving relatively simpler inclusions but higher on impact to rider safety. Footrest and hand holds, a pillion guard on the rear wheel are some initiatives taking the market closer to the 300 cc segment. When you go into the heavier side of the vehicles, riders are looking for performance modes and that’s where the ride modes come into play. Beyond this, there is Optimised Curve Braking (OCB) required especially for the curve riding and the Rear-wheel Lift-off Protection (RLP). Drawing from the four-wheeler safety, the two-wheeler market is also gearing up to focus on cyber security and advanced rider assist functions like blind-spot detection, traffic signal alerts and adaptive cruise control function besides multiple lane changes assist functions. We are currently engaged with the many key OEMs in the Indian market and overseas as well, where we are working on some of these functions currently not legislated. They come from product legislation. We are already engaged and working on these topics with our customers. Q. Would you be able to share a time line for the commercial rollouts or introduction to the market? A. For functionality in the twowheeler segment, it might take a couple of years in India to advance. Ride modes, OCB, RLP, right hill hold assist, are expected to come in much earlier. We are actively working with some key OEMs across the country, South and North to introduce these functions. The window for some of these functions is very small. Will it come as part of the government regulation and mandate, maybe not. The OEMs based on consumer feedback are wanting to work on advancing technology that also extends to advanced lighting systems. ACI AUTO COMPONENTS INDIA // MARCH 2022

Cover Story

Tapping Revenue Streams With Higher Utilisation Showing signs of recovery from the pandemic induced slowdown, MM Forgings is confident of growth with higher asset utilisation. Prateek Pardeshi links the recent performances with the vision to open up new revenue streams.

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AUTO COMPONENTS INDIA // MARCH 2022

n the aftermath of the pandemic, closed die forging provider, MM Forgings Ltd. is regaining traction. Confident of opening up new revenue streams with streamlined and well-oiled procedures and practices, the company will leverage an in-sync human capital to realise its full potential. A testimony to efforts fructifying is the recent acknowledgement from CV major Ashok Leyland. Leyland awarded the company with the ‘Silver Award’ in the Cost Category, in 2021. Its expansion spree is also evident from recent acquisitions like that of Cafoma Autoparts for an estimated valuation of Rs.33 crore known to include a rupees five crore subordinated debt. Vidyashankar Krishnan, Managing Director, MM Forgings in the recent past

has stated that the second half of FY2021-22 should be much stronger than the first half and also with the likely pickup in the CV market. The company expects to close to around 65,000-tonne in volumes this year.” With cautious optimism, the company, as per recent reports, could realise a revenue stream of ~ Rs.1,100 crore for FY202122 with an incremental hike in projections the years thereafter. As per the company’s investor conference call, the company hopes to increase volumes from 60-tonne to 80-85,000-tonne before scaling up to 1-1.2 lakh tonnes in FY2023-24. It is banking on sweating the new press lines in comparison to the old press lines. The company also hopes to benefit from the growing

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Picture Courtesy: Automotive Electronics Council

EV exposure and expectations of the domestic business contributing a higher degree than the exports business compared to the contrasting equation as of current. As per the company’s Profit and Loss (P&L) statements, on a YTD comparison basis for FY202122, the total income grew by 179 per cent over the same period the year ago (FY2020-21). The latter being an exceptional year and as a result a low base case. Operational revenue stood at Rs.777.76 crore with an operational EBITDA of 147.22 crore. PAT at Rs.82.58 crore had the company turn net positive with a total revenue of Rs.789.79 crore in a significant

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jump over April-Dec FY2020-21 at Rs.439.86 crore. In comparsion to FY2019-20, operational revenue grew by a margin of 109.40 per cent with growth in EBITDA and PAT at 117.59 per cent and 178.58 per cent respectively. The growth despite a raging pandemic can be attributed to the companies exposure to the export markets, majority being for the North American market where it supplies to Class 8 trucks expected to hold the company in good stead for FY2022-23 and FY2023-24.

q Split focus

Traditionally, at MM Forgings, the core revenue is known to be accounted for by passenger cars, commercial vehicles, off-highway equipment, agricultural and engineering component segments. Here, the company caters to a diverse clientele including Original Equipment Manufacturers (OEMs) like Ashok Leyland BEML BHEL Audco Valves and Tractor Engineers as a tier1 supplier. It is able to do so courtesy a 100,000+ metric tonne capacity installed across nine manufacturing facilities spread across the country. From having in place two press, CNC FM hammer, maching plants in Singampunari and Viralimalai; a press, hydraulic

press, maching plant in Padappai; Industrial automation division in Chennai; Crankshaft Machining at Rudrapur and an axle beams and stub axles maching plant in Lucknow. The latter being a greenfield facility in the state of Uttar Pradesh. The company also commissioned a 7000-tonne press in the year 2019, which was dedicated to heavy forging. The company has been able to develop important, high-valueadded goods primarily to innovative application of new technology as per the Annual reports made public by the listed company. Front

Vidyashankar Krishnan, Managing Director, MM Forgings Ltd. AUTO COMPONENTS INDIA // MARCH 2022

Cover Story P&L Statement

(Refer Fine Print*)

Particulars

April-Dec FY2021-22 (in crore)

April-Dec FY2020-21 (in crore)

FY2019-20 (in crore)

Per centage growth in FY2020-21 (FY2019 as a base case)

Per centage growth FY2019-20 (FY2019 as a base case)

Total income (Net sales/Income from operations)

789.79

439.86

727.3

108.58 per cent

60.47 per cent

Revenue from Operations

777.76

426.52

710.9

109.40 per cent

60 per cent

Operational EBITDA

147.22

64.83

125.19

117.59 per cent

51.78 per cent

Profit Before Tax (PBT)

94.33

28.5

57.42

164.280 per cent

49.634 per cent

Profit After Tax (PAT)

82.58

16.47

46.24

178.58 per cent

35.61 per cent

Axle Beams are created utilising an 8000-tonne forging press with the help of the latest technology and a reduced roll design compared to competitors said to use a 12000-tonne forging press. The company boasts of a wide variety of equipment, consisting of mechanical forging presses (1600- to 8000-tonne), CNC forging machines and hydraulic presses going by the spread of facilities at dedicated plants.

With the acquisition of Cafoma Autoparts, the company will look to leverage the latter’s technical prowess in manufacturing, machined crankshafts for the tractor and industrial markets. To give a perspective, Cafoma has a monthly production capacity of 15,000 crankshafts. It currently produces 5,000 crankshafts, per month, on a job-to-job basis. By delivering forged

AUTO COMPONENTS INDIA // MARCH 2022

crankshafts to Cafoma, in turn, the company is hopeful of unlocking synergies. The company aspires to grow into a full-fledged provider of machined crankshafts to a wide range of industries with a major focus on automotive including the commercial vehicles segment and farm mechanisation in keeping with the needs of the agriculture sector in the country.

q Risk neutral

To hedge against the cyclical nature of performing automotive segments back home, the focus on exports has paid rich dividends to the company given its focus in the North American and European markets. The company continues to be a net earner of foreign currency in an indication of the risk neutral strategy paying off. The current year’s net foreign exchange

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earnings were estimated at Rs.338.66 crore. To succeed in the stringent quality focused export markets, there is great emphasis on Total Quality Management, at MM Forgings. The company has attained the ISO 9001 and TS 16949 certifications to win customer confidence. Export sales at Rs. 354.89 crore and domestic sales at Rs.356.58 crore is proof to the company’s risks well distributed holding it in a good stead. Commercial Vehicles (CVs) are an important sector to the company as per Krishnan. With the CV market expected to see a good traction in the United States among other exports markets for the company, the risk neutral exposure might see through the company realising its vision in the foreseeable future. Notably, CV sales account for a majority at 75 per cent of net sales followed by passenger vehicles at 18 per cent with the rest constituting the WWW.AUTOCOMPONENTSINDIA.COM

remaining seven per cent of sales for the company. Scaling up operations to be able to manufacture 60,000 crankshafts per month, the company is hopeful of breaking onto the top league of integrated crankshaft suppliers in India with its in-house forging and machining facilities. The company, as per its annual report, is looking to sweat its assets

optimally and utilising the excess unutilised production capacity to attain its projected outputs over FY22-23 and FY202324. The aspirations are backed by cost and material consumption reduction efforts at the Research and Development (R&D) level to reconfigure input costs like that of steel, fuel, and on the front of power utilisation at the plant level.

Axle beams, steering knuckles, crankshaft, axle spindles, gear blanks, sockets, front hubs, ball studs, cross, differential spiders are among the closed die forgings manufactured by the company. Of these the front axle beams, knuckles, and crankshafts will continue to be a major focus area. The business is now working on a complex front axle beam in an 8000-tonne forging press. Using advanced FEA software, the team was able to reduce the load in a mechanical forging press by around 9.5 per cent while maintaining the front axle beam’s performance characteristics. The stress and deflection levels of both designs have been checked, and the optimised design’s stress and deflection levels are within acceptable limits. The focus on technology absorption, adaptation and innovation will continue to drive its growth going forward. ACI

AUTO COMPONENTS INDIA // MARCH 2022

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Tabled For Long-Term Growth

The Union Budget 2022-23 surprised a section with its focus on long-term growth. Ashish Bhatia looks at the allocations and implications for the auto components segment.

@atashishbhatia

AUTO COMPONENTS INDIA // MARCH 2022

t’s not easy to please all! Who better than Finance Minister (FM) Nirmala Sitharaman to vouch for it as she knew what it felt like to walk on thin ice having presided three Budgets previously. Not a mutually exclusive one, it’s been the case with any Finance Minister tasked with appeasing all sections of society, in one go, on budget day. In her fourth budget, the FM, despite year-long allocations and interventions was obligated to present the balance sheet ‘As-Is’ and make provisions for fresh allocations from the Centre as expected by the stakeholders of the auto components industry from the annual spectacle. Especially, since the economic recovery was marred the third

time around by the Omicron mutation of the Covid19. In the third consecutive year of the pandemic, she was expected to dole out allocations akin to a booster jab for instant growth. And so, she was expected to announce a majority of measures for the near to midterm in line with the industry’s recommendations. Instead, the FM in a unanimous word on the street, surprised a large section, with a long-term focused budget, tabled and deemed apt for sustainable growth. “Brevity has always been a virtue,” tweeted Anand Mahindra on the shortest budget speech by the sitting FM to sum up the overall business sentiment. Starting off the customary Union Budget 2022-23 speech, WWW.AUTOCOMPONENTSINDIA.COM

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Nirmala Sitharaman, Minister of Finance and Corporate Affairs, Govt. of India

the FM began on a sombre note as she extended empathy towards victims of the pandemic, those who experienced adverse impacts. From thereon, she switched to remind the house of the interventions in the recent past to lay the foundation for her announcements. “The overall, sharp rebound and recovery of the economy are reflective of our country’s strong resilience. India’s economic growth in the current year is estimated to be 9.2 per cent, the highest among all large economies,” she asserted. Drawing attention to the speed and coverage of the country’s vaccination and the improvement made on health infrastructure in the past two years, the FM opined that the country is in a strong position to withstand challenges.

q India at 100

Referring to the vision for India at 100 in a 25-year lead-up from India at 75, she went on to highlight the key goalposts, ranking high on the Government of India (GoI) agenda. These comprise of macro-economic level growth focus with a micro economic level all-inclusive welfare focus, promoting digital economy and fin tech, technology-enabled development, energy transition, and climate action. It also included relying WWW.AUTOCOMPONENTSINDIA.COM

“The auto components industry is dominated by small players and the extension of the ECLGS and its cover, revamping and infusion of funds into the CGTMSE scheme combined with the RAMP program will help the MSMEs stay relevant and competitive. The budget also announced a reduction in duty on some commodities and removal of anti-dumping duty on some steel items which will help alleviate the current challenge of availability of raw materials in the automotive sector. That apart, the opening of the Defence R&D to the private sector will create yet another opportunity for the auto components sector.”

Sunjay J Kapur, President at ACMA

on a virtuous cycle, starting from private investment with public capital investment, and helping to crowd-in private investment. “The Productivity Linked Incentive in 14 sectors for achieving the vision of AtmaNirbhar

“SIAM welcomes a growth-oriented budget focused on building long term strength using investment as the growth lever while maintaining policy stability and inclusivity. We will work with the government for policy and welcome the message on ‘Ease of Doing Business’ and look forward to this being observed in spirit by all departments.”

Kenichi Ayukawa, President at SIAM Bharat has received an excellent response, she added, referring to 115 companies recently applying under the scheme, including the Champion OEMs. While 20 Champion OEMs are known to have received their approvals, applications for the Component Champion Incentive scheme are being processed separately and will be notified soon. With the scheme expanding to Advanced Chemical Cell (ACC), for example, it is expected to create 60 lakh new jobs, and additional production valued at 30 lakh crore over five years.

q A sharp increase in capital expenditure

The FM’s announcement on increasing Capital Expenditure (CAPEX) for 202223 by 35.4 per cent, from 5.54 lakh crore AUTO COMPONENTS INDIA // MARCH 2022

special reads

“The Government’s commitment to promoting selfreliance and indigenousness by leveraging Indian Industry is once again reinforced with the 68 per cent (enhanced) domestic allocation for defence capital procurement. Earmarking 25 per cent of the Defence R&D budget for Industry, Startups & Academia is a forward-looking measure.”

Baba N. Kalyani, CMD Bharat Forge Ltd.

(revised to 6.03 lakh crore this year) in 2021-22 to 7.50 lakh crore for 202223. The total expenditure of Rs.39.45 lakh crore is estimated at 2.9 per cent of the GDP (2.2x the expenditure of 2019-20). Total receipts other than borrowings are valued at Rs.22.84 lakh crore. The FM drew attention to the CAPEX amounting to 10.68 lakh crores when clubbed with ‘Grants-in-Aid’ for states. According to the FM, the move, building over the previous years provision, will ensure the economic recovery benefits from the multiplier effect. (Refer to adjoining graph*). Last year’s Rs.34.83 lakh crore total budget estimates projection was also revised to Rs.37.70 lakh crore. This year, infrastructure continued to be a focus area. The FM laid down priorities that included the PM GatiShakti, Inclusive

AUTO COMPONENTS INDIA // MARCH 2022

Development, Productivity Enhancement and Investment, Sunrise Opportunities, Energy Transition, and Climate Action besides a road map to financing the Investments.

q PM GatiShakti

The PM GatiShakti was cited as a trans formative approach for economic growth and sustainable development. Of the seven engines driving it, roads, ports, mass transport and logistics infrastructure found a prominent mention in the speech. Tasked with the responsibility of pulling the economy in unison, the GoI intends to support the vision with a holistic development plan. At this point, the ‘National Master Plan’ was cited and attention was drawn to the importance of putting in place, seamless multimodal connectivity and ensuring logistics efficiency. State governments were tasked with providing supporting infrastructure, in line. The FM laid stress on planning, financing including through innovative ways, use of technology, and speedier implementation. The FM called for a need to synergise different modes of movement, both of people and goods including a selection of project locations, focused on raising productivity, and

accelerating economic growth and development. Assuring that the PM GatiShakti Master Plan for expressways would be formulated in 2022-23 to facilitate faster movement of people and goods, a big announcement on the expansion of the National Highways (NH) network by 25,000 km by mobilising Rs.20,000 crore gave hope to the mobility industry. On account of offering a seamless multimodal movement of goods, the FM revealed the plan to bring the data exchange among all mode operators on a Unified Logistics Interface Platform (ULIP),

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designed for Application Programming Interface (API). It is expected to reduce logistics cost and time, assist Just-InTime (JIT) inventory management, and eliminate tedious documentation that transporter bodies express displeasure on, often. The industry will also watch out for contracts to be tendered for implementation of multimodal logistics Parks at four locations through PPP mode in 2022-23. 100 PM GatiShakti cargo terminals for multimodal logistics facilities were also announced with a three-year development plan.

q Development of the North East Under the Prime Minister Development Initiative for NorthEast (PM-DevINE), the North-Eastern Council will overlook execution. From funding infrastructure to align with WWW.AUTOCOMPONENTSINDIA.COM

the PM GatiShakti to addressing voids through social development projects over and above the central and state schemes in place. The budgetary allocation included an Rs.1,500 fund to kick start the development programmes. Under the ‘Vibrant Villages Programme’, villages on the Northern border will gain access to accelerated development of infrastructure, and road connectivity expected to boost the demand for vehicles in the region. This in turn will require support from a robust components ecosystem.

q Ease of doing business 2.0

In the second leg of ‘Ease of Doing Business the FM announced ‘trustbased governance. It seeks active involvement from stakeholders involved. Digitalisation of manual processes and interventions, integration of centre and state-level systems using IT bridges, single-point access for citizen-centric services and standardisation and removal of any overlapping compliances was emphasised. The Centre sought to build an active feedback mechanism with the involvement of both citizens and businesses. Expecting a half of the population, when India turns 100, to migrate to urban regions, the budget stressed the importance of parallel urban development.

“The additional excise duty of rupees two per litre on unblended fuel is to be imposed from October 01, 2022. This will encourage the blending of fuel and we expect OEM’s to further invest in clean and blended fuel engines. Overall, it is a capital expenditure oriented budget that will lead to demand generation in the long term for the automobile industry.”

Kavan Mukhtyar, Partner & Automotive Leader, PwC India Nurturing mega cities and their hinterlands to turn centres of economic growth, the FM called for the need to steer a paradigm change.

q Clean and sustainable mobility

Clean and sustainable mobility found a big mention in the FM budget speech! The FM shared the GoI’s intent to promote the shift to public transport in urban areas. She opined it would be complemented by clean tech and governance solutions, special mobility zones with zero fossil-fuel policy, and EVs. To address the issue of space constraints faced whilst setting up charging infrastructure in urban areas, she informed of the centre coming out with a battery swapping policy and formulating inter-operability standards. The FM AUTO COMPONENTS INDIA // MARCH 2022

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“The special focus towards clean technologies and electric vehicles for public transport will positively impact companies manufacturing and supplying technology to electric buses and commercial vehicles. The concessional corporate tax of 15 per cent for more than one year till March 2024 will provide the muchneeded impetus for the Covid impacted manufacturing segment. This is further bolstered by the eagerly anticipated relook at the SEZ act, which will boost the competitiveness of the Indian manufacturers.”

Suresh KV, President and Regional Head, ZF India

informed the House, that the private sector will be encouraged to develop sustainable and innovative business models for ‘Battery or Energy as a Service’ expected to improve efficiency in the EV ecosystem. Data Centres and Energy Storage Systems including dense charging infrastructure and grid-scale battery systems were also awarded infrastructure status which

AUTO COMPONENTS INDIA // MARCH 2022

“While the focus of this budget was more on connecting rural areas to urban using state of the art infrastructure and e-mobility, the impact of this will be measured in the midterm to long term. The introduction of a battery swapping policy shall be welcomed and the announcement regarding welcoming auto manufacturers in defence R&D can be seen as progressive in nature.”

Dr Arun Singh, Global Chief Economist, Dun and Bradstreet the FM opined would facilitate credit availability. Connected mobility could also expect to get a boost with 5G mobile services targeted for rollout within 2022-23 by private telecom providers after undertaking spectrum auction in 2022. Efforts will be made to create a level playing field for tier towns as urban metros with an emphasis on facilitating access to digital services by 2025. The budget allocations outlined spending for near and long terms actions. In the Budget speech, the role of the circular economy was also outlined. The Centre, claimed the FM, was ready with action plans on 10 sectors including End of Life Vehicles

“The formulation of inter operability standards will be important to bring stability to the sector. We welcome the move to encourage private sector companies and start-ups to provide Battery-as-a-Service and Energy-as-aservice, which will also help catalyse innovation and investments in these sectors. The increase in government contribution for R&D in clean mobility will provide an impetus to this innovation, and help bring about sustainable development at scale.”

Anjali Bansal, Founder, Avaana Capital (ELVs). It committed to addressing cross-cutting issues of infrastructure, reverse logistics, technology up gradation and integration of the informal sector that the opposition parties recently criticised the government for alleged neglection.

q Farm mechanisation Farm mechanisation can expect to benefit from the impetus on agriculture in the Budget outlay. From assuring Rs.2.37 lakh crore Minimum Support Price (MSP) transfer directly to farmer accounts to promoting chemical-free farming to

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“Overall, a very consistent and simple budget with 100 per cent directional alignment to last year’s budget focuses on building trust. This shows the long term focus of the government versus too many changes whilst keeping the option of announcing reforms throughout the year. No one can complain that commitment to predictability, reducing ambiguity and litigation has not remained a steady focus.”

Vishesh C. Chandiok, CEO, Grant Thornton Bharat

“For the Indian automobile sector, which is a significant contributor to the nation’s GDP, the budget offers continuity and also additional opportunities to drive multi-year growth.”

“The Finance Minister has presented a growth-oriented and pro-development Budget for 202223 by focusing on sustainable planning & development, energy transition for a cleaner tomorrow and inclusive growth through a techenabled economy.”

P B Balaji, Group CFO, Tata Motors Ltd. increasing domestic production of oil seeds, Union Budget 2022-23 had FM commit to delivery of digital and hi-tech services to farmers with involvement of public sector research and extension institutions along with private agri-tech players and stakeholders of the agrivalue chain. A scheme in PPP mode will be launched, she informed the House of

Dheeraj Hinduja, Executive Chairman, Ashok Leyland Ltd.

Parliament. A fund with blended capital, raised under the co-investment model, will also be facilitated through NABARD. It is aimed at financing startups in the farm produce value chain and will boost

GST, Custom Reforms And Duty Changes

Hailed as a landmark reform by GoI, Goods and Services Tax (GST) challenges came to the fore once again in Union Budget 2022-23. The FM lauded the GST council for enabling the GoI to overcome an initial set of challenges and building a fully IT-driven and “progressive” GST regime, she admitted, that challenges remain. Resorting to overcome them in 2022-23, the FM lauded the buoyant growth in collections and hailed taxpayers for their cooperation. Claiming to have struck the right balance between facilitation and enforcement, the FM, credited it for resulting in better compliances. Hailing the customs’ reforms for their contribution in domestic capacity creation, providing a level playing field to MSMEs, easing the raw material supply-side constraints, enhancing the ease of doing business and being an enabler to other policy initiatives such as PLIs and Phased Manufacturing Plans, the FM moved on to customs side proposals in her speech. She proposed to phase out the concessional rates in capital goods and project imports in a phase-wise manner, applying a “moderate” tariff of 7.5 per cent. On advanced machinery, she added, that certain exemptions within the country shall continue. Claimed to have leveraged extensive consultation, the FM proposed a gradual phase-out of 350 exemption entries especially on products where domestic capacity is deemed sufficient. She also committed to simplifying the customs rate and tariff structure. She pinned her hopes on the removal of exceptions on items that can be manufactured locally and on raw materials used for the manufacturing of intermediate products. On fuel blends, the FM cited it as a priority of GoI. Aimed at incentivising blending of fuel, the FM announced that unblended fuel would be subjected to an additional differential excise duty of rupees two per litre with effect October 01, 2022. This is expected to encourage manufacturers to look at flex-fuel engines as a new revenue stream.

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AUTO COMPONENTS INDIA // MARCH 2022

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“The Union Budget 2022 presented by the Central Government today has several positive signals for the EV, manufacturing and logistics sector, which are fundamental to the economy. However, the possible increase in import expenditure of certain components may cause some lack of joy among several of our industry peers.”

Uday Narang, Founder and CEO, Omega Seiki Mobility machinery for farmers on a rental basis among other such initiatives. Stress was also laid on helping farmers adopt appropriate harvesting techniques with a package that will have participation from states. Its implementation could benefit component manufacturers and the aftermarket supply to the farm equipment manufacturers in the long run.

q Initiatives for MSMEs

For MSMEs, the FM announced initiatives aimed at formalising the economy and enhancing entrepreneurial opportunities. By interlinking the Udyam, e-Shram, NCS and ASEEM portals, the Centre is also looking at providing G2C, B2C and B2B services which would link back to credit facilitation, skilling and recruitment. The Emergency

AUTO COMPONENTS INDIA // MARCH 2022

Credit Line Scheme (ECLS) claimed to extend credit to 130,000 MSMEs was extended up to March 2023 with its guarantee cover expanded by 50,000 crores to a total of five lakh crore. A Credit Guarantee Trust aimed at the infusion of funds is expected to aid MSMEs with an additional credit line of two lakh crore. Through the Raising And Accelerating MSME Performance (RAMP) programme, an outlay of Rs.6000 crore will be rolled out to help the sector turn more resilient, competitive and efficient.

q Defence localisation The localisation of Defence was reiterated in the FM speech. The GoI revised the capital procurement budget and enhanced the upward limit capped at 58 per cent in 202-22 to 68 per cent for 2022-23. Defence R&D, the FM announced, will be opened up for industry, startups and academia and 25 per cent of the R&D budget was set aside for it. To top up, the private industry encouragement on taking up design and development of military platforms and equipment in collaboration with DRDO and other organisations, the SPV model, the testing and certification requirements will be met by an independent nodal apex body. Artificial Intelligence, semiconductors, green energy and

clean mobility were pointed as sunrise opportunities with an employment generation potential.

q Promoting exports

To promote exports, the FM announced the replacement of the Special Economic Zones (SEZ) Act with new legislation. Laying greater stress on involving states as partners in ‘Development of Enterprise and Service Hubs’, the initiative is intended to cover all large existing and new industrial enclaves to optimally utilise the available infrastructure and enhance healthy competition.

q Financing budgetary allocations

As per a Ministry of Finance, statistic, read out by the FM, in 2020-21,

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special reads venture capitalists and PE funds invested a staggering amount of 5.5 lakh crore in the startup and growing ecosystem. To scale up the investment further, the FM committed to set up an expert committee to examine and suggest appropriate measures. The government has also decided to promote thematic funds for blended finance. The FM shared, the government share will be capped at 20 per cent with the private fund managers given the onus of managing the funds. Infrastructure projects, like in the past, will be enhanced by scaling up private capital. One will have to wait and see the impact of the digital rupee (Central Bank Digital Currency) backed by block chain technology and to be issued by the RBI in 202223 on the CV sector as an additional

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inclusion in the digital ecosystem especially post the demonetisation exercise. On the bone of contention, often between states and the centre, central funding, the FM announced the enhanced capital outlay under the ‘Scheme for Financial Assistance to States for Capital Investment’, from Rs.10,000 crore in the budget estimates to Rs.15,000 crore in the budget estimates for 2022-23. For states to catalyse investments as their contribution to the economy, the budget sets aside one lakh crore in a 50-year interest-free loan arrangement in addition to the regular borrowing. With the above allocations, the FM stated the government expects the fiscal deficit to hover around the 6.4 per cent of the GDP mark in line to bring it down to sub 4.5 per cent by 2025. A move looked like a direct benefit to the startups, the supply-side, the FM, in part B of her speech announced the extension of tax incentives for three years (out of 10 years of incorporation) from March 31, 2022, by an additional one year (March 31, 2023). The FM also announced the extension of the 15 per cent concessional tax applicable to newly incorporated domestic manufacturing companies by an additional

“The Honourable Finance Minister has delivered a promising budget that aims to address the long-term growth prospects in a clear and precise manner. The reforms to do away with old clearance systems will make it easier to do business in India and it is likely to unlock a fresh wave of investment. The focus on cleantech, policies on urban planning, battery swapping etc are a clear direction towards muchneeded steps to meet the long-term sustainability targets. The policy push with the right levers of PLI scheme is likely to further spur the development of the entire EV ecosystem in the country.”

Harsha Kadam, Managing Director & CEO, Schaeffler India Ltd year, from March 31, 2023, to March 31, 2024. The move to cap long-term tax gains on transfer of assets other than equity, revised downwards, from 37 per cent to 15 per cent, could also prove to be beneficial to the startups and manufacturing ecosystem striving for a higher degree of localisation. ACI AUTO COMPONENTS INDIA // MARCH 2022

Special Reads

Effective Contract Manufacturing Solutions Layam Group emerges as the prime mover in providing bestin-class contract manufacturing services. G.S. Ramesh, Founder and Chairman of the Layam Group shares how.

@gsrameshlayem

ost, Quality and Productivity have emerged as prime movers in the aftermath of globalisation wherein there is a pervasive environment of stiff competition. In the present times for any industrial establishment to succeed, one must follow the unwritten rule of ‘LowCost High Productivity’ with a philosophy of ‘Do More with Less’. Most of the industries have become used to managing competitiveness by conducting business with low-cost manpower due to which we saw the arrival of a migratory workforce. In addition to this, we have experienced the impact of the pandemic in 2020 and the subsequent reverse

migration aspect that resulted in a shortage of manpower. The industries are left with no choice but to revisit their style of operations to keep themselves alive in the system. This situation became critical and after revisiting and reengineering themselves, the concept of ‘Contract Manufacturing’ was conceived. Contract Manufacturing is not an easy business or a comfortable solution to be adopted immediately because the client hands over part of his operations to a third party expecting him to perform more professionally with a concept of ‘Do More with Less’ with a focus on quality and productivity. So, it has to be understood that the foundation for contract manufacturing is professional trust and quality delivery which would result in a win-win situation. Taking into consideration a holistic approach, Layam Group has developed this model on the same basis and established its credibility by giving results on the desired performance. We understand the specific needs and recognise the potential hurdles with the process and accordingly devise effective solutions. The contract manufacturing model is basically an agreement between Layam and the client with an intention to undertake the production activities and facilitate the delivery of products in a seamless manner. Contract manufacturing is growing at a rapid stage, the reason

AUTO COMPONENTS INDIA // MARCH 2022

being it gives the opportunity for companies/ Original Equipment Manufacturers (OEMs) to concentrate on their strategic growth areas of business while companies like us handle the operational process. The uniqueness of the contract manufacturing model lies in the fact that it focuses on what the deliverable should be in business terms rather than how they should be delivered. Through contract manufacturing, we focus on reducing cost, scaling productivity and achieving 100 per cent quality for the clients. What sets us apart is our focus on brain count instead of head count. We strongly believe that brain count level is diminishing at a faster pace than ever before. An issue that cannot be overlooked or ignored. At Layam, we tackle this problem head-on. Since inception, we have supplied manpower with intellect because we know that a person who is talented and capable becomes an asset

to our client. To sum it up, all activities undertaken in contract manufacturing is about deploying brain count and achieving the desired target to the satisfaction of the client by adopting our model of hiring, training and deployment. It’s quite obvious that the need of the hour is the contract manufacturing model as it has established its credibility by enhancing productivity. Layam Group has initiated this model along with other activities such as ‘Job Contract’, ‘Stores & Logistics Management’ and presently we are extending these services to OEMs like Ashok Leyland, and Tata Marcopolo etc. Hence, all the industries should re look their manufacturing model and strategically initiate our contract manufacturing services to achieve a better bottom line. ACI ------------------------------------------The expert views and opinions of the author are his personal opinions and do not necessarily reflect the views of the ACI magazine. WWW.AUTOCOMPONENTSINDIA.COM

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The Wonder Women The wonder women of the automotive components industry continue to make their presence felt with exemplary commitment and will to deliver against the odds. Our own, Deepti Thore looks at their growing stature across the board.

reaking all stereotypes, women today no longer just occupy desk jobs. They are managing seemingly complex jobs akin to their male counterparts, be it a desk or a field job, managerial level or laborious blue-collar jobs. While working in the automotive industry was earlier considered to be a male suited profile, the landscape continues to change at a steady pace. Albeit it leaves a lot desired. According to a McKinsey Global Institute report only 25.per cent of India’s labour force is

accounted for by women. This is no different in the automobile industry. Gender diversity has certainly improved over the years across roles however the gap remains quite substantial and needs to be addressed to make work places more inclusive offering an equal opportunity for all genders. Many automotive component and ancillary makers, ancillary providers, tyre manufacturers among others are looking at changing this grim picture as it looks to come off age.

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These include the likes of Schaeffler, Fleeca, Bridgestone India, Continental, Sundaram-Clayton, BorgWarner, Anand Group to name only a few. Women clearly bring a lot of value on several parameters including a great eye for quality and detail orientation, skill-sets to work on shop floors, discipline and decision-making ability. Neeru Ahuja, Chairperson, CII Core Group on BEPS Partner, Deloitte says good people will continue to grow irrespective. She advised that the need of the hour is to be ambitious for yourself- the sky is the limit - and never be afraid of hard work. Talk about the work you are doing, take ownership and initiative to out forward your ideas. I cannot emphasise enough how important it is to communicate!

Speaking about women empowerment, Tikam Jain, CEO and Founder at Fleeca India said, “We wanted to integrate women power in the sector of tyre management, tyre service, and tyre maintenance. Though it continued crawling into my thoughts, I always wanted to make Fleeca India more inclusive because of the nature of this job role, which is a rigorous and challenging field job, but that fear dissipated after I learned about the growing number of women working in the logistics and transportation industry.”

q Adopting Diversity

Taking a lead on placing the women in shopfloor, Anand Group, is said to have aced gender diversity at workplace.

A senior once told me : a good person is like vine - nobody can stop it from growing! In my 30 odd years of experience, I have learnt that the key to success is doing what you enjoy the most. Be ambitious for yourself- the sky is the limit - and never be afraid of hard work. Talk about the work you are doing, take ownership and initiative to out forward your ideas. I cannot emphasize enough how important it is to communicate!

Neeru Ahuja, Chairperson, CII Core Group on BEPS Partner, Deloitte. The company was also acknowledged as ‘India’s Best Workplace for Women in 2019’ by Great Place to Work Institute in the past. The company under the leadership of Anjali Singh, Executive Chairperson, ANAND Group and Gabriel India is claimed to have constantly challenged this statement and have acted unconventionally. For instance, at the Anchemco Anand Plant, women run 100 per cent of the shopfloor. Addressing the need for a diverse and inclusive workforce, Rainer WWW.AUTOCOMPONENTSINDIA.COM

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Latha Chembrakalam, Head of Technical Centre India (TCI)

Hetzer, Head of Human Relations Autonomous Mobility and Safety, and HR sponsor for Continental India said, “At Continental, we are persistently working to ensure gender parity at the workplace, especially in areas underrepresented by women talent. Focused measures and topics including learning initiatives, sensitising programs, mentorship, leadership development programs, and equal pay scales are in place for women across different levels.” The industry needs to acknowledge the change and create an atmosphere to nurture diversity. It will not only help create opportunities but will also bring forth the key skill sets

Anjali Singh, Executive Chairperson, ANAND Group and Gabriel India

Shradha Suri Marwah, Vice President, ACMA and Chairperson and MD, Subros Ltd.

and perspectives that women bring to the workplace in greater numbers. Bridgestone Group, on the other hand, has been encouraging active participation and advancement of women in the workplace at each strategic business unit. As of December 31, 2020, the percentage of women workforce across the group was approximately 11.5 per cent. Focused on gender diversity, Schaeffler India has been hiring women from campus since 2015. With the world transitioning towards digitisation, electric, connected and autonomous future, the automotive components industry is looking at recruiting and encouraging talented women which have

a lot to offer in the field. While the change is slowly seeping in the industry, it was quite challenging to penetrate the male dominance in the field of core production, primary functions and the ability of nurturing, building and leading strong teams. Tier suppliers across the board have since then adopted a more inclusive approach and backed the intent with many initiatives to drive the change. It comes as no surprise then that apex body ACMA supports these drivers of change. Notably, Shradha Suri Marwah leads as the Vice President with an over two decade of automotive experience having joined Subros Ltd., leading the company as Chairperson and MD.

q Initiatives to promote women

As per the recent announcement made by the Ministry of MSME, under the Samarth initiative of the Ministry, 20 per cent of MSME Business Delegations sent to domestic and international exhibitions under the schemes for Marketing Assistance implemented by Ministry will be dedicated to women owned MSMEs. Continental aims to nurture and inspire girls and women to better understand the industry through access to resources and learning. It’s ‘Women

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for Manufacturing’ initiative is aimed at empowering and supporting women to take up a career in manufacturing through various skill development programs. “Women for manufacturing program is Continental’s commitment to prepare and mobilise untapped women talent, towards achieving a more gender-balanced manufacturing society,” commented Prashanth Doreswamy, Head of Continental India, and Managing Director Continental Automotive. Schaeffler India has a special Employee referral campaign in place, designed specially to increase the number of female hires in our organisation. The automobile industry has long been perceived as unsuited for women, resulting in a significant under representation of women in this profession. Lack of understanding, the diversity of manufacturing across industries, and restricted access to skill development programmes are to be blamed to an extent. To address this issue, Fleeca is working to bridge the gender gap. It is working towards empowering and inspiring girls and women to get a greater understanding of the tyre industry, gain access to tools and training, and consider a career in tyre management, for example. Women at all levels have access to targeted measures and themes such as learning initiatives, sensitization workshops, and mentoring. As per the company, “We are seeing a significant shift in the industry as a result of the presence of women in this area, as individuals are more organised, producing a clean and sustainable ecosystem, and being efficient and disciplined.” With the ongoing technological evolution driving Industry 4.0, it is expected that women representation in manufacturing companies will continue to grow. Supporting this cause, WWW.AUTOCOMPONENTSINDIA.COM

Prashanth Doreswamy, President and CEO, Continental India

Bridgestone India through its Samaan Social Development Society, Indore is attempting at changing the society’s beliefs and thinking. It’s women mechanic project received a special recognition award. The project aims to change gender norms by promoting livelihood skills among girls and young women. The goal of this project is to connect women with technical and mobility-based jobs.

q Achievements

Continental Automotive has women leading verticals, from the front. Latha Chembrakalam, Head of Technical Centre India (TCI) is responsible for leading TCI to the next level of growth and innovation, including objectives like infrastructure expansion, head count growth and expansion of engineering competence for both the global and local markets. Mahua Acharya, Convergence Energy Services Limited of Government of India, is fiercely driving green transportation in India. Rashmi Urdhwareshe, Former Director of the Automotive Research Association India (ARAI) has long

At Continental, we are persistently working to ensure gender parity at the workplace, especially in areas under represented by women talent. Focused measures and topics including learning initiatives, sensitising programs, mentorship, leadership development programs, and equal pay scales are in place for women across different levels.

Rainer Hetzer, Head of Human Relations Autonomous Mobility and Safety, and HR sponsor for Continental India proved her mettle and continues to serve as President - SAEINDIA and in senior advisory roles. The National Commission for Women, Government of India felicitated extraordinary women from different fields and celebrated their achievements. The ‘Women Extraordinaire’ included Dr Tessy Thomas, the “Missile Woman of India”, and Director General (Aeronautical Systems), DRDO and Dr Kalpana Saroj, Padma recipient and Chairperson, Kamani Tubes. ACI AUTO COMPONENTS INDIA // MARCH 2022

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Invest In Rajasthan The Government of Rajasthan is conducting road shows across the country to draw investment in its components manufacturing and ancillary ecosystem. Prateek Pardeshi draws the attention of tier suppliers and investors to the largest state of the country.

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ajasthan is the largest state and seventh-largest economy, in India! There are already more than 100 automotive and auto-component manufacturing plants in the state of Rajasthan. Deemed as a developed ecosystem for tier suppliers and ancillaries looking to expand their manufacturing footprint or geographical reach, those willing to turn to the Northern state can take confidence from the presence of auto majors like Hero Motors, Honda Cars, Honda Two-Wheelers, and Ashok Leyland. The State Government of Rajasthan nevertheless is taking this proposition to prospective investors from India and the world over. To make a strong case for investing in the state, through initiatives like the ‘Invest Rajasthan Roadshow’,

Rajasthan’s Chief Minister, Ashok Gehlot is doling out incentives and drawing attention to the strategic and distinctive advantages that elevate the status of the state as a strategic investment haven. For example, investors turning to the state can look forward to attractive financial incentives, access to India’s largest industrial land bank, unparalleled market access and an emerging industrial powerhouse. “Rajasthan is the manifestation of our commitment to building enduring partnerships with private enterprise for the development of the state and prosperity of our people. It is an important milestone towards delivering on the commitments made by us to investors,” read a statement from Gehlot. “I invite WWW.AUTOCOMPONENTSINDIA.COM

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you to experience and benefit from the bouquet of exciting opportunities Rajasthan has to offer, and to join us in building a promising future for all of us,” a pre-recorded Audio Visual (AV) echoed at the road show’s leg.

q Investors Connect The Rajasthan Government had

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organised the ‘Investors Connect Programme’ a part of the Invest Rajasthan Roadshow, in SoBo. Held in collaboration with National Partner CII, to attract investments in the automotive sector among other key sectors in the State, this was well represented on the ground by the participation of representatives from across sectors like automotive manufacturing, MSMEs, Startups and Energy and Petroleum. Shakuntla Rawat, Minister of Industries, Government of Rajasthan in her keynote positioned Rajasthan as a haven to potential investors. “Rajasthan has abundant natural resource reserves. It offers adequate infrastructure including power supply, water resources, roads and other necessary infrastructure that connects it to neighbouring states,” she averred while also drawing the proximity to the country’s capital. The Chief Minister assured investors of a reformist approach to maintaining law and order in the State. With this prelude of a statelevel investors summit, the state, in Mumbai alone, successfully secured a Memorandum of Understanding (MoU) worth Rs.1,27,459 crore and

Letters of Intents (LoIs) worth Rs.67,379 crore amounting to an over Rs.1,94,800 crore of total investment commitments. The State has attracted investments of over Rs.162.5 billion in two-wheeler, car, truck, busbody building and off-road vehicle manufacturing from companies such as Honda, JCB, Ashok Leyland, Hero MotoCorp, etc. Rajasthan produces almost everything that goes into making an automobile. With investment commitments across the board and 40 proposed projects, it is estimated that approximately 1,44,000 new private-sector job opportunities will be directly created, further boosting the state’s economy.

q Plug and play

For every manufacturing business to be successful with a quick turnaround time, a plug and play set-up in a state is preferred over having to build a groundup ecosystem. It is crucial to realise Returns on Investment (RoI) quicker. In the case of Rajasthan, natural resource availability, a skilled pool of labour and a developed infrastructure look promising. With 3.42 lakh sq. km. land expanse, the Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO) account for an industrial area of ~ 48,399 acres which is claimed to be a developed industrial land parcel. Investors who want to build a facility from the ground up too, have abundant options to choose from a land bank of 20,000+ acres. Additionally, natural resource availability is abundant in the state, reiterated on multiple instances, which is an assurance for crucial raw material availability made available to the automotive sector including the autocomponents sector as an important sub-segment. Rajasthanis also boasts of 82+ universities and the state has gained National recognition for its skilling initiatives. Additionally, supply chain and transportation plays a vital role AUTO COMPONENTS INDIA // MARCH 2022

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Ashok Gehlot, Chief Minister, Rajasthan

for those operating businesses out of the state. As far as supply chain and logistics are concerned, the state boasts eight inland container depots and one air cargo complex. The multimodal connectivity is enhanced with Rajasthan as the second-largest National Highway (NH) network. About 60 per cent of the Delhi Mumbai Industrial Corridor (DMIC) influence zone at 38 per cent of Dedicated Freight Corridor (DFC) is known to pass from the state. The location is also a major advantage, in terms of around 40 per cent of the country’s market accessible from within the state.

q Helping attain SDGs Rajasthan is deemed as a state with the potential to help investors attain their Sustainable Development Goals (SDGs). For example, the State wants to lead in the Electric Vehicles (EVs) space. In a written reply in the Rajya Sabha, Union Minister for Road Transport and Highways, Nitin Gadkari shared information of total number of EVs in the country accounting 870,141, as of December 2021. EVs have gained attention from the State like its peers with 46,862 already plying on road. Rajasthan ranks in top five states, in EV adoption which hints at a scope of the EV component suppliers and ancillaries opting to set up base here. Admitting

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the initial high cost of acquisition being a big deterrent for consumers, the state, pitched the CM, can help lower costs of acquisition for customers through supply-side benefits it can provide. With batteries accounting for 40-50 per cent of the total cost of EVs, Rajasthan has well-stocked reserves of lead and zinc as crucial input materials for the manufacture of Lead-acid batteries. These could open the doors for manufacturers looking to lower the acquisition costs of e-bikes and e-rickshaws, for example, as a suitable import substitute. To boost the ecosystem and create a level playing field for charging solutions providers, the state, as per the Investor pitch, can offer leverage to companies looking at setting up a solar-powered charging ecosystem. Rajasthan, for the record, contributes the highest solar energy in the country with a current installed capacity of 2.2 GW. K Nandakumar, Member of the CII National Council and Chairman and Managing Director of Chemtrols Industries Pvt. Ltd., drew from his 15-year relationship with the State of Rajasthan. The development of the first waste energy plant for the Jaipur Municipal Corporation ten years ago was a remarkable achievement, he shared. Chemtrols has automated three major petroleum terminals in Jaipur, Jodhpur, and Chittorgarh as a testimony to the scope of advancement. Arun Nanda, currently the Chairman of Mahindra Lifespace Developers and Mahindra Holidays & Resorts (I) Ltd., shared his 25-30 years of experience working with the State Government. He cited Mahindra Group’s presence in the state across four large segments including spare parts and logistics. Nanda also emphasised the state’s literacy rate is impressive. He stated one-third, or approximately 36 per cent, of the country’s accountants, are graduates from the state. While establishing the Mahindra spare parts facility, in a case study presented by

Shakuntala Rawat, Minister of Industries, Government of Rajasthhan

Nanda, he used the palm to emphasise the tactical location of the state. All fingers represent the gateway to the country’s northern states, he quipped before hailing the state’s infrastructure. Be it the DMIC or proximity to ports crucial to logistics.

q The success rate

With a focus on numbers and the Invest Rajasthan Roadshow around the world, Ashutosh Pednekar, Secretary Industries and Managing Director, RIICO, Government of Rajasthan, stated that a parallel show was taking place in Ahmedabad, Gujarat giving a glimpse of the push from the state. In Ahmedabad, MoUs worth 39,000 crore were signed. In the National capital, MoUs worth 79,000 crore are known to have been signed. MoUs worth Rs.45,000 crore is said to have been signed in Dubai. He also associated the number of investments with the Rajasthan Investment Promotion Scheme for 2019. Building on the 2019 draft of the policy, Rajasthan as a one-stop shop, offers investors access to 14 departments under one roof. A testimony to ensuring a seamless tendering process, digitalisation has paved the way for investors to submit their investment proposals. In agreement with Ashutosh, Subodh further cited the MSME act. WWW.AUTOCOMPONENTSINDIA.COM

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The investors in the state, it is claimed, require no permission under any state law, in effect. The act is known to be in place since May 2019. The Act also states that no inspector from any state government department may visit, check, or inspect investors setting up business in the state for three years. “You have three years of freedom. If

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the business is successful, take all of the permissions, if not, feel free to optout,” he claimed. Following this move, nearly 12 states are said to have turned to the Rajasthan model to adopt the mechanism in their respective states. Like any other state, there could be teething issues to address and improve the success rate with investors. The

Government of Rajasthan claims to have the solution. It is ready to handhold investors who turn to it with an assurance that the state will not disappoint them. Regions like Barmer, Alwar, Chittorgarh, Bhilwara, Udaipur, Jodhpur, Jaipur, and Banswara are some of the promising investment hubs to consider. ACI

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Influencing Tech Automotive component suppliers and technology firms the world over continue to break new technical grounds. Deepti Thore draws attention to select offerings that may influence a mass adoption.

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isruption in the automotive industry has been pushing automotive component suppliers to adapt to new changes. With the importance of market trends like Connectivity, Autonomous, Sharing/ Subscription and Electrification(CASE) proliferating, many automotive component manufacturers and technology firms across the globe are striving to meet the new technological requirements. At the recently held CES 2022 show at Las Vegas, vehicle technology took the centrestage where more

than 190 automotive companies exhibited innovation across artificial intelligence and automotive technology. Companies including Bird, Bridgestone, Damon Motorcycles, GARMIN, HERE North America, Hunter, Engineering Hyundai Mobis, Indy Autonomous Challenge, Mobileye, NXP, PACCAR,Stellantis, Valeo, Veoneer and ZF Friedrichshafen among others showcased vehicle and transportation technologies. Gary Shapiro, President and CEO, Consumer Technology Association (CTA) & Owner and

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Gary Shapiro, President and CEO, Consumer Technology Association (CTA) & Owner and Producer of CES

Producer of CES commented, “Innovation came to life this week at CES 2022 – with technologies that will reshape industries and provide solutions to pressing worldwide issues from healthcare to agriculture, sustainability and beyond. ” According to Nakul Duggal, SVP & GM, Automotive, Qualcomm Technologies, Inc., “Today, a growing customer demand for unique features and use cases for next-gen automobiles and transportation solutions is steadily increasing, creating tremendous opportunity for modernisation that is led by

electrification and battery electric vehicles, advanced semiconductors and software, always-connected vehicle platforms and automated driving. With features like adaptive cruise control, collision prevention and lane guidance, technology is paving the way to safer roads. Vehicle technology is driving the innovation behind concept cars, connected vehicles and autonomous mobility. It addresses the requirements of navigation, road safety, IT security, vehicle-to-vehicle(V2V) connectivity, driver monitoring among others. The electric automotive components industry, on the other hand, is also rapidly evolving. As per the recent study projected by Gartner, some of the top automotive technology trends include-hardware sourcing(chips), operating systems(OS), Open Data and Open-Source Collaboration Models, over-the-air (OTA) software and autonomous technology. Gartner predicts that by 2025, 50 per cent of the top 10 automotive OEMs will design their own chips and establish direct, strategic, long-term working relations with chip companies, while giving up JIT inventory management practice. By 2028, 70 per cent of vehicles sold will

Nakul Duggal, SVP & GM, Automotive, Picture Courtesy: Automotive Electronics Council Qualcomm Technologies, Inc.

utilise Android Automotive operating system, up from less than one per cent today. Adoption of open-source vehicle architecture operating systems and open electric vehicle (EV) platform will result in the increase of new partnership models in the automotive sector in 2022. Gartner analysts predict that by 2023, half of the top 10 automakers will offer unlocks and capability upgrades through software updates that can be purchased after the sale of the vehicle. Gartner analysts also predict that by 2030, there will be four times as many Level four autonomous robotaxis operating globally than there are taxis in 2022.

q Qualcomm Technologies Inc. Qualcomm Technologies Automotive presented its Snapdragon Digital Chassis at the CES 2022 show. Snapdragon Digital Chassis is a set of technology solutions for building connected and intelligent vehicles that are safer, customisable, immersive and continually upgradeable. As per company claims, it is empowering automakers to redefine vehicles for the 21st century and create new opportunities for the industry. The chassis offers cloud-connected platforms for telematics and connectivity, the digital cockpit, and driver assistance and autonomy to develop vehicles of future.

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Globescan q NXP At CES 2022, NXP showcased semiconductors which enable the safe and secure software defined car with groundbreaking new applications and services. NXP and partners also showcased scalable radar portfolio including radar imaging capabilities which will allow cars to “see” at an amazing accuracy, precisely classify objects and therefore enhance safety for drivers and vulnerable road users. It enables smart data access to real-time vehicle data. The company also showcased

next-gen connected eCockpit for safer experiences that inform and entertain. It introduced industry’s first monolithic tri-radio family to support Wi-Fi 6, Bluetooth® 5.2 and 802.15.4 which supports simultaneous transmit and receive for higher performance in smart solutions. The company also demonstrated it’s radar capabilities via an imaging radar sensor built in collaboration with radar platform and ADAS application expert CubTEK, showcasing enhanced 4D sensing capability with its ability to deliver image-like sensing and sub-degree angular resolution.

q Valeo As a technological and industrial leader in the fields of vehicle electrification, driver assistance, lighting and smart features inside the cabin, Valeo once again demonstrated its ability to pave the way for the mobility of tomorrow at this year’s CES trade show. It presented five major innovations transforming and shaping a cleaner, safer, more autonomous, more connected mobility which included its third-generation LiDAR scanner,Valeo NFL (Near Field LiDAR),Valeo VoyageXR Panorama, intelligent vehicle interior and all-electric 48V motorcycle. Making its public debut at CES 2022, Valeo’s LiDAR scanner can detect objects invisible to the human eye, cameras and radars, located at distances of more than 200 meters. It is expected to be available in market by 2024. Valeo NFL made its world premiere at CES 2022. When used

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on driverless, autonomous vehicles, this innovation creates a safety “bubble” around them. As soon as the vehicle starts, it can display a 360° vision of its surroundings. On a highly automated car, it provides peripheral vision, eliminating blind spots. Valeo VoyageXR Panorama offers broader, even more impressive vision. This technology provides a drone’s perspective – without the drone. Valeo Safe Insight enabling intelligent interior helps identify the driver and alert him or her in the event of distraction or drowsiness, recognises when passengers are on board and reminds them to buckle their seatbelt, and detects when there is someone in a stationary car and raise the alarm in case a child has been left behind. Valeo was also named as CES 2022 innovation awards honoree with its UV Air Purifier protective shield.

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Globescan q ZF Friedrichshafen AG scalability and modularity At CES, ZF showcased ZF brings to e-drive intelligence in advanced inverter technology safety, automated driving through its highly and electrification across intelligent software and the mobility spectrum. semiconductor expertise. By leveraging Microsoft’s It showcased advanced comprehensive set sensor technologies and of cloud, Artificial intelligent functions that Intelligence, Internet add value for consumers. of Things, and data During the demonstration, technologies, ZF is also announced becoming a cloudThe Importance expansion of V2X of ZF ADAS sensorZFbusiness and arrival of native mobility services provider, delivering clean, This means that adoption of safety technologies will For infrastructure, Next generation radar, camera and LiDAR systems in safe, convenient, and affordable mobility solutions it means closer integration and be a key area of focus for OEMs, challenging them real-time engagement with vehicles, whether under the market. to its customers. One example of this is the greater to not only develop deeper connections between real-life data and understanding their customers but innovating ways to make those solutions more apparent and available, trustworthy, and easy-touse. This is an education remit as much as it’s one of development or sales.

q Veoneer Veoneer showcased it’s cutting-edge innovation at CES® 2022. Based on its theme ‘Fit-toDrive’, the company demonstrated Thermal Sensing, LiDAR in partnership with Baraja, Driver Monitoring System in partnership with Seeing Machines, the research project Smart-RCS, and the 5th generation vision solution through the Arriver™ software on the Snapdragon Ride™ Platform, a scalable portfolio of System on a Chip (SoC) and Accelerators for advanced driver assistance systems (ADAS) and autonomous driving (AD), a product of Qualcomm Technologies, Inc.

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the control of people or AI, and requires investments in wireless connectivity and the uniform models of roads, vehicles, people, and environments that will inform that communication. Infrastructure will evolve to become an active collaborator in delivering safer driving outcomes.

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