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www.autocomponentsindia.com Vol 8 Issue 01
March 2021
NON-FERROUS
MOBILISED
The Substitutional Alloy
Low-Voltage Electrification
COMPONENTS
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INDIA
VOICE OF THE AUTOMOTIVE SUPPLIERS
th Anniversary
REFLECTING THE CHANGE UPFRONT | EXCLUSIVES
K M Mammen
Parag Satpute
Jerome Mortal
Dr Reji Mathai
DEEP DIVES l Union Budget 2021: Auto Components Special l The Rolling Resistance l #International CES 2021 - All Things Resilience @autocomponentsindiaofficial
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Cover Story Union Budget 2021: Auto Components Special
The Union Budget 2021 attempts to offer the necessary “succour” to the automotive components industry. Ashish Bhatia takes you through the key budgeted allocations and brings out the expert opinions.
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The Rolling Resistance
The tyre industry has done well to keep the wheels of the nation rolling in a pandemic marred financial year. Ashish Bhatia gets the stakeholders to reflect on the changes, for good and bad, in an ongoing series of engaging conversations.
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The Substitutional Alloy
Largely constituting MSMEs, non-ferrous metal component manufacturers are striving hard to stage a recovery from the pandemic induced degrowth. Ashish Bhatia with inputs from Deven Lad traces the headwinds and tailwinds around ancillaries based out of Asia’s largest brass micro-market.
March 2021
Biranchi Mohapatra is CEO at Spark Minda Todd Morgan is CTO and Innovation Officer at Lumax CEAT Tyres Shoppe Roy Kurian is COO E-mobility at Ampere Electric Made in India Daicel Airbag Inflator
SKF India launches ‘E-Shop’ New Head at Continental CCN JK Tyre partners NATRAX CEAT India partners Royal Enfield HMI MoU with FITT-IIT Delhi Tata Motors Patents Manoj Bhat is Group CFO at M&M NEI ranks top 30 in manufacturing workplaces Mass movement for EVs? Marc Llistosella appointed as CEO and MD of Tata Motors New Skoda India Workshops A Citroen take on comfort
20 Mobilised
Low-Voltage Electrification
48 Special Reads
Meeting Customer Expectations
56 International All Things Resilience
62 #Trendsmap
Key Exchanges On ACI Handles
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AUTO COMPONENTS INDIA n MARCH 2021
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A Variant of Interest or Concern?
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AUTO COMPONENTS INDIA
105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Tel +91 9321546598, Email us at a.bhatia@nextgenpublishing.net Executive Editor Ashish Bhatia Editorial Advisory Board H. S. Billimoria, Aspi Bhathena Head - Design & Production Ravi Parmar Correspondent: Deepti Thore Asst Art Director Ajit Manjrekar Production Supervisor Dinesh Bhajnik Publisher Marzban Jasoomani General Manager – North & East Ellora Dasgupta General Manager – South Girish Shet Deputy General Manager – North & East Chanchal Arora (Delhi) Regional Marketing Manager Salma Jabbar (Chennai) Marketing Manager Minocher Parakh (Mumbai) Manager Circulation - North and East Kapil Kaushik (Delhi) Subscription Supervisor Sachin Kelkar Tel +91 9321546598 Apple Newsstand & Magzter Queries: help@magzter.com Territory Sales Incharge (Circulation) Srinivas Gangula (Hyderabad) Cell +91 09000555756 Territory Sales Incharge (Circulation) Vidyasagar Gupta (Kolkata) Mob: 09804085683 REGIONAL MARKETING OFFICES Next Gen Publishing Pvt. Ltd. 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India, Mumbai -400013. Tel +91 22 9321546598 26 B, First Floor, Okhla Industrial Estate, Okhla Phase III, New Delhi - 110020, India Tel +91 11 42346600/78, Fax +91 11 42346679 Unit No:509, 5th Floor, ‘B’ wing, Mittal Towers, MG Road, Bengaluru - 560001, India Tel +91 080 66110116/17, Fax +91 80 41472574 Cenetoph Elite, No.5, Cenetoph 1st street, Teynampet, Chennai - 600018, India Tel +91 044 421-08-421/044 421-75-421 Devendra Mehta - Mob No.- 09714913234 Ahmedabad S.No.261/G.L.R.No.5, East Street,Camp Pune - 411001. Tel + 91 20 26830465
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One can take confidence from the possibility of removing tragedy out of the crisis.
oses are red and violets are blue is a rhyme of the past. I am blushing red when the markets are in green and I am blue when they are red seems to be the order of the day! Blame the recent volatility in the stock market for the eye reacting to mostly red and green. Besides the market, the attention span is also divided between the ‘Variant of Interest’ and the ‘Variant of Concern’ of Covid-19. Deemed unrealistic by the WHO to get rid of the virus even by the end of the year, one can take confidence from the possibility of removing tragedy out of the crisis. While scouting for stories for the seventh-anniversary issue of Auto Components India (ACI), reflecting on the change in the last fiscal came to us organically, no wonder. Not only did it reveal the nitty-gritty behind the efficiencies added along in the fiscal year, but it also revealed how component OEMs, partner suppliers and ancillaries, in turn, adapted to change. These changes, for good or bad, are expected to have a lasting impact on the quarters to come. In this issue, we deep-dive into the state of affairs at the tyre manufacturers to learn what kept the wheels of the nation rolling, despite the going being tough. We also touched base with the largely MSME driven ancillaries of Asia’s largest brass micro-market. So despite being a closely-guarded community in a high-volume and low-margin business, they opened up to us and we will forever be greatful. As you flip the pages, also watch out for the exclusive ‘Upfront’ interactions had with key stakeholders of the industry. I also take this opportunity to thank you for your patronage. Kindly send in your nominations for the fifth edition of ACI Awards by the extended date of March 10’ 2021 to qualify. Ashish Bhatia Executive Editor | a.bhatia@nextgenpublishing.net /autocomponentsindiaofficial /autocomponentsindia ACI Mag
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Views and opinions expressed in the magazine are not necessarily those of Next Gen Publishing Pvt. Ltd. Next Gen Publishing Pvt. Ltd. does not take responsibility for returning unsolicited manuscripts, photographs or other material. All material published in Auto Components India is copyright and no part of the magazine may be reproduced in part or full without the express prior written permission of the publisher Printed by Marzban Jasoomani Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.. Published by Marzban Jasoomani on behalf of Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India. Printed at Spring Graphics, 215 & 238, Shah & Nahar Industrial Estate, Sun Mill Compund, Lower Parel (West), Mumbai 400013, India. Published at Next Gen Publishing Pvt. Ltd., 105-106, Trade World, B-Wing, 1st Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai - 400013, India.
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All readers are recommended to make their own independent enquiries before sending money, incurring expenses or entering into commitments in relation to any advertisement appearing in the publication. Auto Components India does not vouch for any claims made by advertisers for their products and services. The editor, publisher, printer and employees of the publication shall not be held liable for any consequence in the events of such claims not being honoured by the advertisers. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only. Editor Ashish Bhatia
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Biranchi Mohapatra is CEO at Spark Minda
Spark Minda has announced the appointment of Biranchi Mohapatra as CEO for Business Vertical II - Information and Connected Systems (Wiring Harness, Sensor and Cluster Products) and as a member to its Executive Committee of the Group. Averred Ashok Minda, Chairman & Group CEO, Minda Corporation Limited, “We are very excited to bring on board such an accomplished business leader as Mr Mohapatra, who in his nearly three decades in the industry has forged strong relationships with Indian and Global Customers.” The appointment according to Minda will play a key role in steering the Group’s focus on operational excellence, customer centricity and speedy market responsiveness. The erstwhile Managing Director at Plastic Omnium India and an old hand at Continental Engines, Varroc and Ashok Leyland, Mohapatra will drive business transformation, establish synergy and growth roadmap for the Information and Connected Systems vertical. A BTech in Mechanical Engineering from the National Institute of Technology, Rourkela, he is regarded as an accomplished business leader.
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AUTO COMPONENTS INDIA n MARCH 2021
Todd Morgan is CTO and Innovation Officer at Lumax Lumax, DK Jain Group has appointed Todd C Morgan as its Chief Technology and Innovation Officer, Czech Republic as recommended by the Nomination and Remuneration Committee. Announced in the Outcome of the Board Meeting held on November 09, 2020, he will report to Vineet Sahni, Group Chief Executive Officer, Lumax Industries. Morgan takes over the new role after gaining over three decades of experience in roles spanning auto manufacture and product development. His previous stints include the role of Senior Vice President - Global Product Development at Varroc-Lighting Systems and Director Lighting Product Development - Europe/ Asia. He has also worked as the Lighting Business Development Manager for
European and French OEMs besides looking at product development of new lighting programs for PSA and SEAT. Morgan is an alumnus of Purdue University where he pursued BS, Industrial and Manufacturing System Engineering.
CEAT Tyres Shoppe
Over 200 Ceat Tyres Shoppe will now offer all tyre related services to customers. CEAT Shoppe offers computerised wheel alignment, balancing and nitrogen inflation among a host of other services to the tyre segment. CEAT customers can now look forward to avail and claim the resolution and replacement backed with an on-spot claim resolution service.
Dealers of CEAT Shoppe touchpoints are connected on the CEAT dealer app. where customers can obtain the claim resolution form on-demand. It is expected to fast track the claim resolution process and customers can look forward to an extended warranty on the CEAT passenger car and utility vehicle range. WWW.AUTOCOMPONENTSINDIA.COM
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Made in India Daicel Airbag Inflator Roy Kurian is COO E-mobility at Ampere Electric Ampere Electric of Greaves Cotton Ltd. appointed Roy Kurian as the Group’s Chief Operating Officer (COO) to head the E-mobility Business encompassing electric two-wheelers and electric three-wheelers with immediate effect. He will report to Nagesh Basavanhalli, Group Chief Executive Officer (CEO) and Managing Director at the company. In his previous stints, Kurian is known to have been associated with Yamaha Motors for close to two decades as the Senior Vice President where he overlooked strategic decisions and growth in the Indian market. He was also the Sales and Marketing Head at Tork Motors.
In January, Kita-Ku, Osaka headquartered Daicel Corporation made public the plans to establish a new production site for automobile airbag inflators in India. It is aimed at meeting the growth potential in the segment as a follow-up move to establish a sales base - Daicel Safety Systems
inflators, the new plant is a testimony to the thrust on localisation. DSSI is looking to strengthen the automobile manufacturer and airbag module manufacturer supply chains in India with this move. Besides inflator production, it is looking to develop the India plant as a hub for parts procurement too.
SKF India launches ‘E-Shop’
Bearing manufacturer SKF India recently launched a 24/7 self-service online store ‘E-Shop’. The store is aimed at providing direct access to SKF genuine and reliable products range of bearings and
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India Pvt. Ltd. (DSSI), in Gurugram, Haryana. To be constructed at OneHub Chennai Industrial Park in Tamil Nadu, the plant is expected to start operations in December 2023. A strategic shift from the erstwhile supply of ‘Made in Thailand’ among other country made airbag
AUTO COMPONENTS INDIA n MARCH 2021
bearing units, housing and accessories, greases and other maintenance products for both industrial and automotive segments. Aligning with the Government’s ‘Digital India’ vision, the move is
expected to benefit all the process industries, MSMEs, traders, retailers (including aftermarket), mechanics and fleet owners using the company’s wide range of products offering and solutions. WWW.AUTOCOMPONENTSINDIA.COM
Picture Courtesy : IANS
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New Head at JK Tyre partners NATRAX Continental CCN Continental AG has appointed JeanFrançois Tarabbia as the Executive Vice President, Head of Business Unit Connected Car Networking (CNN). The former Group Senior Vice President, Research & Development (R&D) and Product Marketing at Valeo (in France) took over the new role effective January 01, 2021. He succeeds Johann Hiebl who joined as Head - Product Transformation VNI. Tarabbia with stints as Chief Executive Officer (CEO) at Segula Technologies, and CEO Electronic Division, member of the Board at Hella (in Germany) and Chief Operating Officer - Body and Chassis Electronics at Siemens, will head the technologies and services unit aimed at connecting vehicles securely and reliably. Especially given the backdrop of new E/E architecture with Body High Performance Computer (HPC) taking precedence.
JK Tyre & Industries Ltd. recently signed a Memorandum of Understanding (MoU) with National Automotive Test Tracks (NATRAX). Entailing the development and polish of ‘Wet Grip Test Track’ at NATRAX Pithampur in Madhya Pradesh, it will be used for The Wet Grip Test Track will be used to test the safety aspect of tyres that includes ‘Wet
Grip’ in compliance with the ECE R117 regulation, ‘Wet Braking’, and Peak Brake Force Coefficient (PBFC). It will be used to test the company’s future range of products within the state-of-the-art automotive testing and certification centres built under NATRIP, a flagship project of the Ministry of Heavy Industries, Government of India.
Certified for ‘Zero Waste to Landfill’
JK Tyre & Industries Ltd. has been certified for its initiative - ‘Zero Waste to Landfill’ by the British Standards Institution. An extension to achieve and demonstrate its Sustainable Development Goals (SDGs) in the segment, the company aims to eliminate the disposal of waste to landfills or incineration (destruction) without energy recovery. British Standards Institution (BSI) is known to have audited a total of five manufacturing locations in Rajasthan, Chennai, Karnataka, Madhya Pradesh and Uttarakhand. It was found that no waste, either solid or liquid was disposed of in the landfill. After examination, BSI declared all the five manufacturing locations as ‘Zero Waste to Landfill’ compliant.
CEAT India partners Royal Enfield Tyre manufacturer CEAT Ltd. will supply its Zoom Cruz tyres to the Royal Enfield Interceptor 650. Foraying into the 650 cc segment, the tyre range includes the 100/9018 and the 130/70-18. Averred Amit Tolani, Chief Marketing Officer at CEAT Ltd. “We have a strong
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AUTO COMPONENTS INDIA n MARCH 2021
relationship with Royal Enfield as bikes like Bullet classic and Himalayan have used our products.” “The foray into the 650 cc segment reiterates our commitment to be the preferred choice of OEMs in India.” CEAT is aiming for growth in the premium tyre segment. WWW.AUTOCOMPONENTSINDIA.COM
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HMI MoU with FITT-IIT Delhi ‘Mobile Chikitsa’ - A health initiative
Hyundai Motor India (HMI) Foundation signed a Memorandum of Understanding (MoU) with the Foundation for Innovation and Technology Transfer (FITT)-IIT Delhi. Under the MoU, HMI will provide the Kona EV to aid research on fronts like NVH and battery technology as per a student training initiative. Students will get handson experience on studies
pertaining to alternate energy powered vehicles and emerging technologies in new-age mobility. The Centre for Automotive Research and Tribology (CART) will conduct battery profiling in Kona electric using external sensors or other gadgets using onboard diagnostics. It is expected to help students understand the performance of EVs in different terrains for research purposes.
Hyundai India Foundation launched its first health initiative ‘Mobile Chikitsa’, under their public health programme, ‘Sparsh Sanjeevani’, aimed at bolstering India’s healthcare services in rural India. Aimed at a 25,000 strong community in two villages of Rajasthan, a mobile primary healthcare clinic will offer spot diagnostic test facilities with an MBBS doctor on-board.
Tata Motors Patents Tata Motors filed 80 patents and received 98 patients in 2020. A testimony to the company pursuing engineering excellence and innovation, the patents are linked to Connected, Electrified, Sustainable and Safe (CESS) megatrends in automobiles. A
mix of automotive electronics improvements, Noise Vibration and Harshness (NVH), conventional and advanced powertrain systems, and crash safety these belong to various industrial designs, copyrights and notarisations. Stated Rajendra Petkar, Chief Technology Officer, Tata Motors, “A carefully curated solution-oriented
Tigor EVs for DNRE
approach enables us to collectively ideate, innovate and collaborate to evolve new technologies, products and processes to delight customers.” He cited the consistent development of intellectual capabilities and properties at an institutional level as being critical for the advancement of the industry as a whole.
Tata Motors handed over Tigor EVs to the Department of New & Renewable Energy (DNRE), in Goa. Part of the Energy Efficiency Services Ltd. (EESL) tender, the EVs are aimed at creating the pan India e-mobility ecosystem - ‘Tata uniEVerse’. As part of the 2017 tender, the OEM will supply 10,000 EVs in a phased manner with the help of close synergies with Tata subsidiaries.
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Manoj Bhat is Group CFO at M&M
Mahindra & Mahindra Ltd. recently appointed Manoj Bhat as the Group Chief Financial Officer (CFO) effective from April 02, 2021. He succeeds Dr Anish Shah, the current Deputy Managing Director and Group CFO of the Mahindra Group. Dr Shah will assume the role of Managing Director and Chief Executive Officer. The new Group CFO will report to Dr Shah and will be a part of the corporate office leadership team. To work closely with the finance leadership teams on strategy, governance and controllership, he is expected to provide leadership on all aspects related to financial planning and analysis, financial reporting, business planning, tax management, fundraising and treasury operations. The erstwhile CFO at Tech Mahindra brings in a rich experience of Finance and Secretarial functions across 160 subsidiaries and over 90 countries where he is known to have held multiple positions with global responsibilities for Business Finance, Investor Relations, Corporate Planning, and Mergers and Acquisitions. WWW.AUTOCOMPONENTSINDIA.COM
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NEI ranks Mass movement for EVs? top 30 in manufacturing workplaces Chief Minister Arvind Kejriwal urged citizens to take the EV adoption in the national capital to the next level. Calling for the need to turn it into a mass movement, to create a collective conscience to decrease pollution as a result, the CM cited the EV policy announced in August 2020. Aiming to curb vehicular pollution and attain 25 per cent EV sales of the overall pie by 2024, he committed to the
government setting up 100 charging stations. He also spoke of the ‘Switch Delhi’ initiative aimed at encouraging a transition from ICE vehicles to EVs including urging first-time buyers to consider EVs. Mentioned Minister of Transport, Kailash Gahlot, a shift to resilient, sustainable and inclusive public transport is the need of the hour. The government on its part has committed to hiring only EVs.
Marc Llistosella appointed as CEO and MD of Tata Motors
National Engineering Industries Ltd. (NEI) has been recognised among ‘India’s Top 30 Best Workplaces in Manufacturing 2021’ by Great Place to Work® Institute. Emerging in the top 30 organisations post a rigorous evaluation and assessment process, mentioned Rohit Saboo, President and CEO, National Engineering Industries Ltd. “We understand that positive employee engagement is integral in achieving our business goals and company’s success. I congratulate each employee on this tremendous recognition.” The company credited its employee wellness programs and the practice of recognising employee contribution for the feat. Leadership development and performance enhancement programs for the talent cohorts are among the other such initiatives.
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Tata Motors Ltd. announced the appointment of former Daimler India Commercial Vehicles Chief Marc Llistosella as the Chief Executive Officer and Managing Director effective July 01, 2021. To succeed Guenter Butschek who will be relocating to Germany for personal reasons, averred N Chandrasekaran, Chairman at Tata Motors Ltd. “Marc is an experienced automotive business leader with deep knowledge and expertise in commercial vehicles over his illustrious career and has an extensive operational experience in India.” Thanking Butschek for successfully leading the company for five years, the Chairman appreciated him for accepting the Board of Tata Motors’ request to continue in his role till June 30, 2021. Most recently, the President and CEO of Fuso Truck and Bus Corporation and Head of Daimler Trucks in Asia, Llistosella is known as an old hand well versed with improving the profitability and sales potential of a business. In a glorious stint as the MD and CEO of Daimler India Commercial Vehicles Pvt Ltd. between 2008-14, he is credited with building a greenfield organisation and business unit to develop, produce and sell trucks. He is also credited with the launch of
brand BharatBenz in 2012. Expressed Llistosella, “I am delighted to become a part of the unique Tata family. Having been bonded to India for so many years, a new exciting chapter is now opened. We would jointly awaken the potential of TataMotors.” Currently, the Board Member of Einride, Llistosella has extensive domain knowledge in leading business and running sales, marketing and network management, and strategic planning besides in turnaround management. An alumnus of the University of Cologne, he firmly believes in mobility by data analytics and the importance of electrification and renewable energies. WWW.AUTOCOMPONENTSINDIA.COM
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New Skoda India Workshops
Skoda India recently unveiled two workshop facilities in Maharashtra. In association with Mody Skoda, the Mahalaxmi and Kurla workshops, in Mumbai, will house a state-of-the-art workshop facility. For instance, the Mahalaxmi unit is spread over 15,850 sq. ft. premium service area, equipped with 12 bays, and a capacity to serve 4,600 Skoda vehicles per annum with more than 40 dedicated after-sales personnel. The workshop facility at Kurla spread over 21,000 sq. ft. premium service area is equipped with 25 bays and holds a capacity to serve 7,400 Skoda vehicles per annum with more than 60 dedicated after-sales personnel. Both the workshops will boast of a new corporate identity and design as a part of the Skoda Auto global redesigning process. Under the ‘INDIA 2.0’ project, Skoda Auto India is looking to double its network penetration and expand to fifty new cities by 2022.
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AUTO COMPONENTS INDIA n MARCH 2021
A Citroen take on comfort
New entrant Citroen India has done its homework on passenger comfort. The OEM has identified backache, neck ache and other physical strains associated with driving through research conducted with a sample size of 1801 respondents from 10 cities. Titled ‘Comfortology’, the report according to Roland Bouchara, Senior Vice President, Sales and Marketing, Citroen India draws attention to the comfort or absence of it as a key determinant of the driving experience. A key consideration for road users and vehicle purchasers, the report provides key insights into how and where Indians’ seek comfort. Timed to the launch of Citroen C5 Aircross SUV, it is to reinforce the brand link and commitment to comfort which the company aims to offer through innovative solutions and smart technology. Case in point being the floating engine or the innovative suspension with progressive hydraulic cushions.
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.com ponentsindia www.autocom March 2021 Vol 8 Issue 01
COMPONENTS
7
INDIA
E SUPPLIERS
al Alloy
on The Substituti
th Anniversary
E AUTOMOTIV
VOICE OF TH
NON-FERROUS
MOBILISED
ctrification
Low-Voltage Ele
REFLECTING THE CHANGE S
EXCLUSIVE UPFRONT |
Parag Satpute
K M Mammen
l
Jerome Morta
Dr Reji Mathai
P DIVES
DEE ecial Components Sp et 2021: Auto dg Bu ion Un l sistance Re g llin Ro ce e l Th Things Resilien l CES 2021 - All l #Internationa
Available on
Digital Platform
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obilised
Low-Voltage Electrification Committed to 100 per cent carbon neutrality, Valeo has launched a pedal assembly for e-bikes. Team ACI looks at the mobilisation of this ‘zero-emission’ product in the portfolio.
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aleo is on a mission! Committed to 100 per cent carbon neutrality by 2050, the company is accelerating its portfolio expansion. It is offering ‘zero-emissions’ products in emerging markets. Most recently, in a unique effort, the company launched a pedal assembly for e-bikes. The pedal assembly integrates an electric motor with an automatic transmission inspired by the automotive industry. Averred Jacques Aschenbroich, Chairman and Chief Executive Officer, Valeo, “To do this, we are leveraging and adapting the technological platforms that we’ve developed for the automotive industry – both those dedicated to Advanced Driver Assistance Systems (ADAS) and to low-voltage electrification (48V).” Valeo claims that the
AUTO COMPONENTS INDIA n MARCH 2021
e-bike adapts to the cyclist instead of the other way around. Valeo showcased three prototypes: a city bike, a mountain bike and a cargo bike for goods transportation with reverse and braking energy recovery functions.
Integrated electrical assistance
Claimed to be the world’s first electrical assistance system to offer the integration of an electric motor and adaptive automatic transmission in the pedal assembly, the gears change automatically. The system’s algorithm is said to offer the required electrical assistance from the first pedal stroke. Developed in partnership with Effigear, the e-bike drivetrain is powered by a 48V electric motor coupled
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Mobilised Carbon Neutrality Plan - 2050
Jacques Aschenbroich, Chairman and Chief Executive Officer, Valeo
with a seven-speed automatic, adaptive gearbox fitted in the pedal assembly. At 130 Nm torque, the motor is claimed to multiply the cyclist’s effort by 8X in comparison to 5X boost on offer in the segment. Fitted on a cargo bike, it extends the assistance to a 150 kg load with claims of aiding a fatiguefree ride on a 14 per cent gradient, in both a forward and reverse motion. The claim is of outdoing other 24V and 36V motors in the market. An anti-theft function integrated directly into the pedal assembly can block the use of the bike on activation. Through a pedestrian push-assist function, ferrying heavy loads is claimed to have been made easier. Adding a fun element to address the racing instinct, the boost function makes it easier to overtake other cyclists and ascend steep inclines with relative ease.
In the last decade (2010-20), Valeo is known to have invested Euro 10 billion in technologies aimed at reducing CO2 emissions. With sales generated growing 20-fold, the company has committed to achieving carbon neutrality by 2050. This includes the end-use of products in Europe. The company aims to attain 45 per cent of this objective by 2030. This includes reducing supplier emissions, and emissions from operating activities and its own products with 2019 as the base year. Notably, In 2019, 57 per cent of sales were generated by technologies that help to reduce CO2 emissions. Averred Jacques Aschenbroich, Chairman and Chief Executive Officer, Valeo, “The entire automotive industry is investing heavily to combat global warming. At Valeo, the reduction of CO2 emissions has been central to our strategy since 2010. We intend to continue our efforts, with the aim of achieving carbon neutrality by 2050 and reaching nearly half of this objective by 2030.” As a signatory of the “Business Ambition for 1.5°C” campaign that brings together companies committed to achieving carbon neutrality by 2050 using the strict framework of the Science-Based Targets initiative, the company is piloting renewable energy alternatives including at three Group sites in Chennai, Sanand and Bad Rodach (Germany). On January 25, 2021, Corporate Knights ranked Valeo as the most sustainable company in the automotive sector, among the world’s 100 most sustainable listed corporations. maintenance. On average, a traditional model needs to be serviced at least once a month, even if it’s just to tighten the chain, lubricate the chain and derailleurs, or put the chain back in place. With our technology, it’s over,” exclaimed Jérome Mortal, Director of New Mobilities at Valeo.
Modular platform
Claimed to be scalable, the single
technology base in the form of the 48V electric motor has added to the flexibility of Valeo. On one hand, it can meet broad base use cases, while on the other hand, the high volume production capacity is expected to help the company attain significant economies of scale. Especially at a time when the e-bike market is expected to grow 15-fold over the next 10-years. ACI
Parts elimination
A unique selling proposition is the attraction of the bikes being freed from pain points associated with conventional bikes. The e-bike is free of the derailleur, cables, sprockets, handle shifters and the traditional bike chain, for instance, letting the biker do away with the frequent pit stops for the sake of upkeep. “All in all, electric bikes are freed of around 50 fragile parts that require constant WWW.AUTOCOMPONENTSINDIA.COM
Valeo Smart cargo e-bike
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Single Technology Base In an Upfront and exclusive interaction, Jerome Mortal, Director of New Mobilities at Valeo shares the strategic focus areas for new ‘zero-emissions’ mobility solutions with Team ACI.
Q. What was the strategy behind adapting the 48V motor to e-bikes? Is it a first for the segment? A. One of our key strategic focuses is accelerating our expansion in the emerging markets for new “zeroemissions” mobility. This includes electric small city vehicles, electric motorcycles and scooters, last-mile autonomous delivery droids and e-bikes. To execute this, we are leveraging and adapting the technological platforms that we developed for the automotive industry – both, those dedicated to Advanced Driver Assistance Systems (ADAS) and to lowvoltage electrification (48V). Thanks to our 48V technological platform, which enables us to electrify vehicles at an optimal cost, we can meet a broad range of needs and uses from
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a single technology base and therefore benefit from substantial volume effects and economies of scale. Our 48V technologies equip cars of course, but can also be used in autonomous shuttles, delivery droids, scooters, three-wheelers and now e-bikes. Q. What is the e-bike market size by production volumes and sales? A. The e-bike market is booming, with a 15-fold expansion expected over the next ten years, bringing global sales to Euro 270 million in 2030 as per a McKinsey/Center For Future Mobility -2020 study. With this innovation for e-bikes, Valeo once again demonstrates its role as a major player in e-mobility in all its forms; proposing a system that already meets the
AUTO COMPONENTS INDIA n MARCH 2021
most demanding automotive standards in terms of quality, robustness, durability and safety. We are a world leader in vehicle electrification. Imagine that! One out of three new cars in the world are equipped with our electric machines! We have a unique capacity to produce electric systems on a large scale, with an estimated 30 million electric machines produced annually. Q. How advanced is the electric assistance system? A. Quite simply, it’s the most high-performance electric assistance technology on the market. Compared with the current systems, it’s 60 per cent more powerful! With a torque of 130 Nm, the driving assistance can multiply the pedal torque eight-fold, while other systems on the market offer up to a five-fold boost, allowing the cyclist to ride comfortably and effortlessly in every situation. Valeo’s electric motor is more efficient than the 24V or 36V motors installed on the vast majority of e-bikes available today. It can fit to all types of e-bikes: city bike, trekking bike, cargo bike.
Q. How did you achieve the integration of both the electric motor and the adaptive automatic transmission in the pedal assembly? A. With our innovation, we bring the same kind of functionality as in the automotive world, where modern automatic gearboxes are radically changing the driving experience for users. We have aimed for the same principle of intelligence for the bicycle with a system that can be used either in fully automatic or manual mode. Our system can analyse the cyclist’s performance and dynamics to adapt the assistance to his or her abilities or the way he or she pedals. In short, it is an intelligent system. And it’s all in one package. Valeo’s added value comes from its automotive knowhow and all its other recent electrical developments. We have formed a complementary alliance with the French company Effigear, a specialist in bicycle gearboxes. This association has given rise to an innovation that has no equivalent in the world of bicycles. WWW.AUTOCOMPONENTSINDIA.COM
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Q. How does the bike adapt to the cyclist instead of vice versa? A. With its adaptive automatic transmission, the world’s first for e-bikes, our technology uses a finelytuned algorithm to adapt to each person’s riding style and comfort zone. The gears shift instantly and seamlessly depending on how flat or steep the route is, without the cyclist’s input. Valeo’s entire expertise in terms of adaptive automatic transmissions for cars can now be integrated into bikes. Q. How did you get the tier suppliers to align? A. We are partnering with Effigear on adaptive transmissions, which change gears automatically and instantly adjust the level of electrical assistance to the rider’s needs. We have an Effigear license for the gear change mechanism. The Effigear solution is already well established and has allowed us to move much faster in designing our solution. The partnership forms part of our open innovation strategy: we never shy away from collaborating with other stakeholders - universities, start-ups, manufacturers, etc. Doing so helps us design and bring products to market more quickly. Q. How did you plan a cargo variant? And are the specs higher to cater to the segment’s load-carrying requirements? For example, the push assist function and the boost? A. On cargo bikes you will find the ‘walk’ mode
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in forward and reverse. This allows you to walk next to the bike, especially when it is loaded, with an electric motion aid. Cargo bikes will also have a freewheel battery recharge. The intelligent function is based on measuring the cadence, the power applied to the pedals and the bike’s attitude. The algorithm optimises the power to be developed and engages the right gears according to all these parameters. The integrated gearbox also offers the possibility to shift gears when stationary. We also offer exceptional antitheft functionality thanks to the integrated gearbox. When stopped, the bike is neutralised with the gearbox in neutral. And when you reach the end of the battery capacity, the system switches to second gear, which allows you to return home without stress. Q. How would you rate the efficiency and power of the electric assistance system? The efficiency and the power of our technology is particularly adapted to cargo bikes for deliveries, for which the market is also set to grow substantially as regulations prohibiting access to city centers for polluting vehicles gradually come into force. A cargo bike equipped with Valeo’s high-end electric assistance system allows the cyclist to climb or reverse up a parking garage ramp with little muscular effort while carrying a 150 kg load. It also boasts a pedestrian push-assist function, in both forward and reverse mode, which is particularly useful
AUTO COMPONENTS INDIA n MARCH 2021
Upfront | Exclusive when carrying heavy loads. The boost function makes it easier to overtake other cyclists and climb hills. On a cargo bike, Valeo’s solution also features a unique braking energy recovery function. Q. A word on the elimination of vulnerable bike parts while working on the system from scratch? We hear the count is close to 50. A. Starting from a blank page rather than from the bike as it exists, we completely redesigned the bike of tomorrow, thanks to our technology. In practical terms, that means no more derailleurs, sprockets or handlebar gear shifts – or any of the cables that come with them – and no more chains as we know them – they’re replaced by a much more solid and reliable belt system. All in all, electric bikes are freed of around 50 fragile parts that require constant maintenance. On average, a traditional model needs to be serviced at least once a month, even if it’s just to tighten the chain, lubricate the chain and/or derailleurs, or put the chain back in place. With our technology, it’s over! Q. How significant is the contribution to the emerging market potential of ‘zero-emissions’ mobility? A. Developing technologies that promote greener mobility is part of our DNA. Ten years ago, Jacques Aschenbroich announced that, “Over the next decade, our growth driver will be the reduction of CO2 emissions.” Over the past 10 years, Valeo has invested
more than Euro 10 billion in technologies aimed at reducing CO2 emissions. Thanks to this vision and these capital outlays, Valeo has become the world leader in automotive electrification, both in low-voltage solutions and in high-voltage solutions, through its Valeo-Siemens joint venture. We currently have an absolutely unique portfolio of technologies covering every segment and all uses. Naturally, our technologies directly reduce CO2 emissions from automobiles, but now they are becoming more impactful as they can be fitted on all new forms of electric mobility, especially those set to see rapid expansion in towns and cities. By 2030, 100 per cent of kick scooters will be electric, as will 65 per cent of bikes, 95 per cent of twowheel scooters and 95 per cent of three-wheelers. Our technologies are even capable of injecting unused electricity back into city power grids. Thanks to Valeo technologies, cars will become an integral part of a city’s power grid. Last year, 57 per cent of our sales were generated by technologies aimed at reducing CO2 emissions. Q. How are you combating growing protectionism and the call for higher localisation? A. We will eventually set up production lines based on where our bike manufacturer customers are building their bikes. This is one of the strengths of a group like Valeo, which has a worldwide manufacturing footprint. ACI WWW.AUTOCOMPONENTSINDIA.COM
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Reflecting The Change
Union Budget 2021: Auto Components Special The Union Budget 2021 attempts to offer the necessary “succour” to the automotive components industry. Ashish Bhatia takes you through the key budgeted allocations and brings out the expert opinions.
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he Union Budget 2021 was deemed as the “once in a century budget” even before it was made public. After a pandemic marred 2020, the ask was for bold reforms to address and alleviate pain points, both from the supplyside and demand-side perspective. Finance Minister Nirmala Sitharaman was dealing with expectations that had skyrocketed. On February 01, 2020, when she uttered the first word from her speech on the ‘Made In India’ tablet, the departure from the traditional
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practice of reading out from the “Bahi-Khata” or cloth ledger was interpreted by pandits as a metaphor for change. The government, in an attempt to tone down the soaring expectations, had on the eve of the budget, cited the sector specific ‘tranches’ as having already addressed most pain-points in the form of ‘mini-budgets’. This Union Budget was deemed as a consolidated account of the mini-budgets. The government , it was evident, walked the rope of maintaining a WWW.AUTOCOMPONENTSINDIA.COM
Cover Story
Deepak Jain, President ACMA
“MSME dominates the auto components industry and this outlay will provide the necessary succour.” tight fiscal plan with the RE 202021 at 9.5 per cent compared to the budgeted level of 3.5 per cent of GDP (attributed to increased expenditure on various schemes announced by the government in light of the pandemic). The industry, however hoped for additional support to reverse the negative impacts of the pandemic induced de growth as it had repeatedly sounded off the expectations on both the supply-side and the demand-side concerns ahead of the D-day.
Budget outlay for the sector
The Union Budget 2021 came on the back of sector-specific provisions like collateral-free loans for Micro Small and Medium Enterprises (MSMEs), Funds of funds, subordinated debt, disallowing global tenders of up to Rs.200 crore and change in the definition of MSMEs. With a holistic approach to health as an obvious priority, the Finance Minister allocated Rs.2,23,846 crore as against 94,452 the previous year. Posing limitations to allocations for sectors alike she cited the unprecedented contraction in the global economy. She drew attention to only three budgets WWW.AUTOCOMPONENTSINDIA.COM
Vikram Kirloskar, Vice - Chairman, Toyota Kirloskar Motor Pvt. Ltd.
Gurupratap Boparai, Managing Director at Skoda Auto Volkswagen India Pvt. Ltd.
“We are eagerly looking forward to the details of the Production Linked Incentive (PLI) scheme that can potentially make India a part of the global supply chain for both traditional and advanced automotive technologies.”
“The much-required rationalisation of GST and cess to aid the auto industry was missing. Additionally, the increase in customs duty on certain auto parts to 15 per cent will further increase input costs and prices for cars which depend on specialised components, which cannot be manufactured locally due to unviable volumes.”
having followed a contraction in the economy assuring that the current budget would help sustain the desired economic recovery. Under the Production Linked Incentive (PLI) scheme, Rs.1.97 Lakh crore was allocated for creating “global manufacturing champions” across 13 sectors including industries and services. A five-year outlay beginning FY2021-22, the latter (services) commands a majority stake in the sector-wise share in Gross Value Added (GVA) terms. Rs.2,217 crores for 42 urban centres to tackle air pollution, voluntary vehicle scrappage policy, innovative PPP models to augment public bus transport were among other announcements expected to boost the prospects of the sector. Besides the government also committed to extending social security benefits to gig workers. On the human capital front, it resorted to realigning the national
apprenticeship training scheme for graduate and diploma holders of engineering. It will also leverage the partnership with the UAE and Japan on the fronts of skill development and recognition. For R&D, National Research Foundation would be formed with an outlay of Rs.50,000 crore over a five year period. Innovation and R&D found a mention among the cited six pillars of the economy. The eligibility for claiming tax holidays for startups was proposed to be extended by an additional year. In Indirect taxes, the government has rationalised the customs duty structure by eliminating outdated AUTO COMPONENTS INDIA n MARCH 2021
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Nagesh Basavanhalli, Group Chief Executive Officer and Managing Director, Greaves Cotton Ltd.
“The allocation of a sizeable sum towards the PLI scheme will help the industry create jobs and boost economic growth. The recognition of the manufacturing sector as an integral part of the global supply chain will be a boost to the industry.” exemptions. It offered support to MSMEs hit by the recent sharp rise in iron and steel prices besides offering relief to metal recyclers. One must note here, of the total revenue kitty, customs duty contributes three per cent; GST contributes 15 per cent; Corporation Tax contributes 13 per cent; union excise duty contributes eight per cent; income tax contributes 14 per cent. For 2021-22 (BE), revenue receipts stand at Rs.17,88,424 crores, with capital receipts at Rs.1,69,44,812 crores, capita expenditure at Rs.5,54,236 crores and revenue expenditure at Rs.2,92,9000 crores. Notably, the Ministry of Road Transport and Highways (MoRTH) was allocated Rs.118,101 crores.
The apex body
Satisfied with the measures announced in the Union Budget as
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Ashwath Ram, Managing Director, Cummins India Ltd.
“The industry will definitely receive a push by the decision to double the allocation of MSME and reduce the customs duty on some of the steel products.” it focused on health and well-being, infrastructure, inclusive growth, human capital, innovation and R&D, and reforms in governance as an all-rounded attempt, the Auto Component Manufacturers Association as the apex body representing India’s auto component sector thanked the Finance Minister. Averred Deepak Jain, President, ACMA, “The vision of an Aatma Nirbhar Bharat enshrined in the Union Budget, coupled with the ‘Sankalp’ of ‘Nation-First’ will be the bedrock to propel us further as we redefine our economy in a postpandemic world. The significant outlay for vaccination in the country will add to the confidence of a resurgent India.” Acknowledging the announcements about an increased spend on road infrastructure, voluntary scrappage policy (20 years for PVs and 15 years for CVs), R&D and Production Linked Incentive (PLI) scheme among others as auguring well for the automotive sector, Jain lauded the allocations on ensuring a long-term positive
Harsha Kadam, Chief Executive Officer, Schaeffler Group India and President - Industrial Business
“The PLI scheme investments is going to play an accelerator for the manufacturing sector, which has seen really tough times. It will encourage global manufacturing firms and also provide incentives for local manufacturing firms to expand.” impact on rural demand for vehicles. Citing the hike in basic customs duty on select auto components as a step in the right direction to encourage local manufacturing, he also lauded the outlay for the MSME sector for being double in comparison to the year-ago. “MSME dominates the auto components industry and this outlay will provide the necessary succour,” he opined.
OEMs
From an auto industry perspective, the long-awaited voluntary scrappage policy can help take older vehicles off the roads thus contributing to lower fuel consumption, pollution as also generating additional demand for cleaner new vehicles, opined Vikram Kirloskar, Vice Chairman, Toyota Kirloskar Motor Pvt. Ltd. “The auto sector welcomes this announcement and is hopeful that for realising full WWW.AUTOCOMPONENTSINDIA.COM
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Dr Raghupati Singhania, Vice-President JK Organisation, and Chairman & Managing Director of JK Tyre & Industries Ltd.
“Finally, the muchawaited scrappage policy has been announced, which is a welcome step. This will increase the sale of new vehicles and in turn boost tyre demand.” benefits there will be an early and full implementation of this policy. We are eagerly looking forward to the details of the PLI scheme that can potentially make India a part of the global supply chain for both traditional and advanced automotive technologies,” he mentioned. Gurupratap Boparai, Managing Director at Skoda Auto Volkswagen India Pvt. Ltd. said, “While further details of the prior announced PLI scheme is awaited, the same is expected to help the Indian auto industry to improve production efficiency and become self-reliant - atmanirbhar”. Of the opinion that the passenger vehicle market would not attain the 2018 levels, Boparai explained, “The much-required rationalisation of GST and cess to aid the auto industry was missing. Additionally, the increase in customs duty on certain auto parts to 15 per cent will further increase input costs and prices for cars which depend on specialised components which cannot be manufactured locally due to unviable volumes.” WWW.AUTOCOMPONENTSINDIA.COM
Anurag Garg, Managing Director & Country Head, Vitesco Technologies, India
“We also look forward to the proper implementation of this policy at a larger stage as soon as possible, as it will help us to enhance demand in the market.” Nagesh Basavanhalli, Group Chief Executive Officer and Managing Director, Greaves Cotton Ltd. said, “The allocation of a sizeable sum towards the PLI scheme will help the industry create jobs and boost economic growth. The recognition of the manufacturing sector as an integral part of the global supply chain will be a boost to the industry.” He added, “While the auto sector would have liked to see more direct measures in the budget, however, the scrappage policy is certainly a step in the right direction along with the focus on rural and agri credit growth also likely to have a cascading effect on the sector. Ashwath Ram, Managing Director, Cummins India Ltd. remarked, “The voluntary policy on the scrapping of vehicles will have a positive impact and will drive the commercial vehicle and auto sector forward.” On the MSME outlay, he added, “The industry will definitely receive a push by the decision to double the allocation of MSME and reduce the customs duty on some of the steel products.” Harsha Kadam, Chief Executive Officer, Schaeffler Group India and
Prashanth Doreswamy, Country Head, Continental India and Managing Director, Continental Automotive Components (India) Pvt. Ltd.
“The relaxation in the customs duty on steel products, ferrous, and non-ferrous materials etc., is a welcome move, however, raise in the customs duty for certain auto parts will further inflate the overall cost of the vehicle.” President - Industrial Business opined, “This budget has the ingredients to deliver long term growth. The voluntary scrappage policy implementation is surely a step in the right direction.” “The PLI scheme investments is going to play an accelerator for the manufacturing sector, which has seen really tough times. It will encourage global manufacturing firms and also provide incentives for local manufacturing firms to expand.” Dr Raghupati Singhania, Vice-President JK Organisation, and Chairman & Managing Director of JK Tyre & Industries Ltd. said, “The Hon’ble Finance Minister has presented a ‘progrowth’ budget in these unprecedented times. Finally, the much-awaited scrappage policy has been announced, which is a welcome step. This will increase the sale of new vehicles and in turn boost tyre demand.” AUTO COMPONENTS INDIA n MARCH 2021
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Sanjay Gupta, Vice President and India Country Manager, NXP Semiconductors.
Farrokh Cooper, Chairman & MD, Cooper Corporation Pvt. Ltd.
Vikas Bajaj, President, Association of Indian Forging Industry
“In India, we have to focus parallelly on ‘Design-in-India’ in addition to ‘Make-inIndia’ to continue to be ahead of the curve.”
“The industry would definitely be encouraged by the decision to double the allocation of MSME and to reduce the customs duty on steel.”
Anurag Garg, Managing Director & Country Head, Vitesco Technologies, India remarked, “The announcement of a voluntary Scrappage policy is a move in the right direction. We look forward to details on this to understand how this can encourage the adoption of electric vehicles, gradual reduction of air pollution in the coming years, and newer Bharat Stage Norms in the future.” “We also look forward to the proper implementation of this policy at a larger stage as soon as possible as it will help us to enhance demand in the market,” he expressed. Prashanth Doreswamy, Country Head, Continental India and Managing Director, Continental Automotive Components (India) Pvt. Ltd. averred, “Several of the initiatives announced today, such as the commitment of Rs.1.97 lakh crore for PLI schemes and guidelines on scrappage policies will have long-term gains for the industry.” He opined, “The relaxation in the customs duty on steel products, ferrous, and non-ferrous materials etc. is a welcome move, however, raise in the customs duty for certain
auto parts will further inflate the overall cost of the vehicle.” On the attention on renewable energy sources, he said, “While the ‘Hydrogen Energy Mission” and allotment for development of solar power, looks futuristic, electrification of vehicles is the future of the automotive industry.”
“The positive step of reduction in customs duty uniformly to 7.5 per cent on semis, flat, and long products of nonalloy, alloy, and stainless steels would certainly contribute to better raw material prices and reduced input costs.”
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Ancillaries
Pleased with the announcement of Rs.50,000 crores for the National Research Foundation over the period of five years, mentioned Sanjay Gupta, Vice President and India Country Manager, NXP Semiconductors, “This will surely boost the overall research and innovation ecosystem of the country. In India, we have to focus parallelly on ‘Design-inIndia’ in addition to ‘Make-inIndia’ to continue to be ahead of the curve.” Farrokh Cooper, Chairman & MD, Cooper Corporation Pvt. Ltd. mentioned, “Budget 2021 is optimistic, driving the country towards Aatma Nirbhar Bharat. The voluntary policy on the
scrapping of vehicles would have a positive effect and will move the commercial and automobile industries ahead.” “The industry would definitely be encouraged by the decision to double the allocation of MSME and to reduce the customs duty on steel,” he added. Vikas Bajaj, President, Association of Indian Forging Industry stated, “This year’s Union budget is positive, as well as a progressive one with a strong drive towards the country’s socioeconomic growth. The positive step of reduction in customs duty uniformly to 7.5 per cent on semis, flat, and long products of non-alloy, alloy, and stainless steels would certainly contribute to better raw material prices and reduced input costs.” “Also, no new corporate tax has been added which is positive news as it is a tough time for the industry,” he concluded. ACI WWW.AUTOCOMPONENTSINDIA.COM
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The Rolling Resistance The tyre industry has done well to keep the wheels of the nation rolling in a pandemic marred financial year. Ashish Bhatia gets the stakeholders to reflect on the changes, for good and bad, in an ongoing series of engaging conversations.
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Reflecting The Change
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he Financial Year 2021 (FY2021) began by casting a shadow over the tyre industry’s growth prospects. Believed to be leading the march for India, manufacturing for the rest of the globe, tyre manufacturing was battered by the repeated blows of lockdown in Q1FY2021. The industry was left with no choice but to take the blows in the interest of preventing the transmission of Covid-19, and to support the
AUTO COMPONENTS INDIA n MARCH 2021
government in its efforts for the larger good. As a result, in an unprecedented move, the tyre industry, known to be a continuous process industry, shut down tyre manufacturing plants across the nation. According to KM Mammen, Chairman Automotive Tyre Manufacturers Association (ATMA), the industry complied with the need of the hour despite knowing that a sudden shut
WWW.AUTOCOMPONENTSINDIA.COM
Cover Story down of operations could deal a body blow to the work-in-progress and the raw material inventory. “Thankfully, when the lockdown was lifted,” averred Mammen, “the industry got down to business in the right earnest, braving all odds and disruptions. It goes to the credit of the industry that not only domestic demand was met squarely but sustained focus was also maintained on tyre exports.” In hindsight, the tyre industry is claimed to have gone from strength to strength with each passing quarter of the fiscal. For instance, the economic stimulus and infrastructure boost, referred by Mammen, translated to a healthier Q3FY2021 for the industry when compared to the pre-pandemic fiscal.
The exports were valued at Rs.6,000 crore in the first half (H1FY2021) of the ongoing fiscal year. Mammen especially credited the second quarter (Q2FY2021) performance for helping the export business stage a recovery. “Export performance in Q2FY2021 compensated for the sharp drop of 23 per cent in tyre exports experienced in Q1FY2021 bringing the overall decline down to seven per cent in the first half of the current fiscal,” he described.
Working in unison
Attributing the success in withstanding the tough times to the close association of the industry with its raw material partners, expressed Mammen, the credit goes to the formalised framework, set up a few years ago to bring the tyre industry and raw material partners on one single platform. It is believed to have led to the genesis of ‘ATMA Partners’ Summit’. “With significant sales coming from the Original Equipment Manufacturers (OEMs),” the tyre industry, he added, “worked closely with OEMs for ensuring a fullrange availability.” Especially during the crucial festive season expected to turn the tide for the industry. Parag Satpute, Managing Director at Bridgestone India, echoed a similar sentiment. He said, “The pandemic spared no one as the entire automotive sector’s ecosystem was impacted.” “One of the reasons that the automotive sector came through this situation was that they were respectful to the limitations that all of us faced,” he stated.
Supply shortage?
Shrugging off the concerns around tyre shortage, like the shortage of performance tyres reported for the aftermarket, Mammen attributed the alleged supply mismatch reported when the industry first began to unlock, to the large pent up demand. Categorising it as a short-term disruptive phenomenon, he lauded tyre manufacturers for largely succeeding in addressing the demand. Adding to it, Satpute expressed confidence in the WWW.AUTOCOMPONENTSINDIA.COM
void, if any, being filled soon enough as a result of the government approving the import of the particular category of tyres, known, not to be domestically manufactured. Bridgestone, as per Satpute, has accelerated the development program of performance tyres having a reasonable demand.
Inventory management and outlook
It is also true that the demand for tyres has turned volatile both from an OEM perspective as well as the aftermarket. Admitting to the volatility being tricky, Mammen called upon the stakeholders of the tyre industry, to pull off the “great balancing act”. “The industry is constrained by volatility at both ends of the spectrum – natural rubber (raw material) availability as well as the demand for tyres. So inventory management in the tyre industry calls for a higher order of inventory efficiencies and practices such as time to market,” he exclaimed. Of the opinion that the demand is buoyant rather than being volatile, Satpute blamed the buoyancy for the added stress on the inventory levels. “It’s a nice problem to have,” he quipped. Satpute shifted focus to a bigger concern, in his opinion. “The bigger concern has been the shipping line crisis especially from the South East region which is our major source of raw material,” he revealed. Talking of Bridgestone, Satpute claimed, an agile approach has enabled the company to circumvent the challenge successfully. The industry on the whole, according to Mammen, is optimistic about the foreseeable future. “As the tyre industry’s fortunes are closely linked to economic growth, the outlook is positive in the near to medium term,” he commented. Concluded Satpute, the industry was moving towards normalcy and it was time to increase the supply. ACI -----------------------------------------Read on for the detailed transcript of the engaging conversations with the stakeholders of the tyre industry as part of an ongoing series. AUTO COMPONENTS INDIA n MARCH 2021
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A Positive Outlook
In an Upfront and exclusive interaction, K M Mammen, Chairman, Automotive Tyre Manufacturers Association (ATMA) speaks highly of the close-knit approach of tyre manufacturers taking along raw material partner suppliers and the OEMs. Ashish Bhatia gauges the sectoral impact on the coming quarters.
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WWW.AUTOCOMPONENTSINDIA.COM
Upfront | Exclusive Q. You’ve been a proponent of the ‘Tyre Industry’ leading the march of India manufacturing for the globe? Did this belief hold good even in the pandemic marred Financial Year (FY2021) in hindsight? A. In fact, the belief has only strengthened. The manufacturing prowess of the tyre industry has shown through during the tumultuous phase of the pandemic. As you know, tyre manufacturing was badly battered during the lockdown which had to be implemented urgently to prevent the spread of Covid-19. In solidarity with the government’s move, tyre plants shut down operations forthwith despite the fact that tyre manufacturing is a continuous process industry, and a sudden shut down of operations could deal a body blow to the workin-progress and the raw material inventory. However, when the lockdown was lifted, the industry got down to business in the right earnest, braving all odds and disruptions. It goes to the credit of the industry that not only domestic demand was met squarely but sustained focus was also maintained on tyre exports. With economic stimulus, infrastructure received a boost and the tyre industry was privileged to be the wheels of the nation. Tyre production numbers are much healthier in the third quarter (Q3FY2021) of the current fiscal despite the pandemic as compared to the previous fiscal numbers. Q. What will it take for the industry as a whole to align with this vision? A. The tyre industry has seasoned entrepreneurs having been in the business for several decades. So the industry as a whole is aligned to the vision of ‘Make in India’ with its attributes of domestic manufacturing, employment and skill development. Q. What is the near to medium term sectoral outlook? A. The outlook is optimistic indeed. The economy is in a fast recovery mode and has shrugged off the pandemic WWW.AUTOCOMPONENTSINDIA.COM
blues. In the coming fiscal, India is looking at over 11 per cent growth which will be a historic high though it will be on a low base. As tyre industry’s fortunes are closely linked to economic growth, the outlook is positive in the near to medium term. Q. In H2-2020, we’ve heard of a shortage of performance tyres for the aftermarket? How has the industry tackled this situation? A. There was a large pent up demand as the process of unlocking was initiated so that might have led to some short-term disruptions in the supplies. Largely, the demand has been adequately met by the tyre manufacturers.
“As tyre industry’s fortunes are closely linked to economic growth, the outlook is positive in the near to medium term.” Q. Reflecting on the change in FY2021, how efficient did the supply chain turn out to be? Was there hand-holding of partner suppliers/ ancillaries through the chain in these tough times? A. The tyre is a raw material intensive industry and the growth of the industry is contingent on the close association between the industry and its raw material partners. Tyre manufacturing companies have forged a close association with raw material suppliers. A formalised framework was set up a few years ago to bring the tyre industry and raw material partners on one single platform and that led to the genesis of ‘ATMA Partner’s Summit’ which has been held annually. The consultations held over the years proved handy during the pandemic as the tyre industry and partner suppliers were able to support each other during the tough times.
Q. How did vehicle OEMs in particular handhold the tyre industry? Were they able to ensure sustenance in the chain, for tier1s to beyond with this intervention in hindsight? A. We were in it together. The disruption caused by the pandemic affected all the sectors. The tyre industry derives significant sales from the OE segment. However, when demand for vehicles started to pick up especially during the festive season, the tyre industry worked closely with the vehicle manufacturers to ensure availability of the entire range of tyres. Needless to say without a close collaboration between vehicle and tyre OEMs that would not have been possible. Q. Did ATMA and member OEs empower the tier suppliers in the value chain to in turn make them more self-reliant and capable compared to the prepandemic years? A. With the pandemic, a new normal has set in. The vision of a self-reliant India is for all of us to act upon. A self-reliant India is all about making the value chain competitive. Aligned with PM’s vision of an Atma Nirbhar Bharat and under the patronage of Minister of Commerce & Industry, the tyre industry under ATMA is working on a large project aimed at assisting thousands of Natural Rubber (NR) growers especially in the North East of India which has a large potential for growth of NR and in bridging the widening gap between NR production and consumption in the country. Q. How did prices of commodity/ input raw materials and import dependence add to the business complexities? A. Both pricing and availability of raw materials is a matter of perpetual concern for the tyre industry. Yes, certain key raw materials used by the tyre industry are in short supply domestically and imports are the only source to meet the deficit. AUTO COMPONENTS INDIA n MARCH 2021
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For instance, domestic NR production is able to meet only about 60 per cent of the domestic requirement. NR attracts a relatively high import duty of 25 per cent while tyres can be imported at a far lower rate of 15 per cent or even lower under FTAs. This inverted duty structure has affected the growth potential of the tyre industry in India.
“So inventory management in the tyre industry calls for a higher order of inventory efficiencies and practices such as time to market.”
Q. How have exports fared in comparison? Any impact of growing protectionism and the post-Brexit trade dynamics all through FY2021? A. Notwithstanding disruption in international trade following Covid-19 pandemic and protectionist stance being adopted by countries, the Indian tyre industry managed to touch a figure of nearly Rs.6000 crore in exports in the first half of the ongoing fiscal. Export performance in Q2FY2021 compensated for the sharp drop of 23 per cent in tyre exports experienced in Q1FY2021 bringing the overall decline down to seven per cent in the first half of the current fiscal.
tyre industry in all sincerity. Especially the restrictions imposed on the import of tyres during FY2021 have provided a fillip to the domestic production. Indiscriminate import and dumping of tyres have been a bane of the tyre industry in India.
Q. What is your stance on the government ensuring a stable ecosystem through frameworks and tranches in FY2021? Have the most genuine requirements been met? A. The government has taken cognisance of the concerns of the
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Q. How do you look at the phenomenon of label rated tyres for India on the lines of the advanced markets like the EU? A. The Indian tyre industry conforms to the highest standards and norms as specified by the government. I am sure that will be the case with the label rating of tyres as and when it is introduced. Q. Generally speaking, is there a lack of know-how from the buyers perspective resulting in inappropriate choices? Which segment is it most prevalent in? Is ATMA focusing on educating by way of experiential retail? A. Tyres with certain specifications/ ratings are made for specific vehicles.
Standardisation has enabled the customers to choose any brand of their liking as long as the specifications are met. However, it is the tyre care and maintenance aspect that leaves much to be desired. Over the last few years, ATMA along with its technical wing Indian Tyre Technical Advisory Committee (ITTAC) is intensely involved in creating awareness on ‘Tyre Care’ and ‘Road safety’ through on-ground activations, ‘Tyre clinics’, ‘Safety seminars’, ‘Mass media messaging’, ‘Social media campaigns’, and participation at expos besides the launch of safety calendars, animation films, jingles and other possible interfaces to reach out to motorists. During this journey, several leading organisations including Infosys, Honda Cars, ISRPL, Pipavav Port, Indian Oil, Haryana Tourism and Haryana Transport Department, etc., have joined hands with ATMA for tyre safety training for both the passenger as well as commercial vehicles. Q. To conclude, how tricky is inventory management given the volatility of demand from both the OEM as well as the aftermarket perspective? A. It’s a great balancing act that the tyre industry needs to pull off. The industry is constrained by volatility at both ends of the spectrum – NR (raw material) availability as well as demand for tyres. So inventory management in the tyre industry calls for a higher order of inventory efficiencies and practices such as time to market. ACI --------------------------------------------K M Mammen has held various executive positions in business associations in the country including as President of the Indo Australian Chamber of Commerce. He is an executive member on the board of FICCI and Chairman of the Board of Madras Christian College Association. WWW.AUTOCOMPONENTSINDIA.COM
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Time To Increase Supply In an Upfront and exclusive interaction, Parag Satpute, Managing Director at Bridgestone India opines that its time to increase the supply to meet the rise in demand. Ashish Bhatia with bureau inputs highlights the changes in tyre manufacture and business for the company. WWW.AUTOCOMPONENTSINDIA.COM
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Q. How will tyre retail evolve with the new Bridgestone Select + store? A. Bridgestone India has always led the change in the consumer experience with our superior offerings. This started with introducing products that were durable and designed for Indian road conditions. To deliver the best product experience we introduced Bridgestone Select outlets in India where tyres purchase and all tyre related services could be availed at one stop. This has been a successful retail format for us. However, it is a known fact that tyres as a vehicle component garner far less involvement from consumers, in spite of them being a major contributor to overall vehicle performance and safety. The Bridgestone Select + stores are conceptualised to provide a solution for this issue. It takes a lot to make a superior tyre and there are multiple factors to consider before consumers make a pick. And, Bridgestone as a technology leader is taking a lead in sharing our knowledge and expertise so that consumers can make a more involved and informed decision. Q. How are you going to integrate an educational experience in tyre retailing? A. Most of the consumers are busy executives or modern millennial who are less aware of tyre and car maintenance details but seek a lot of control and information. Consequently, there is a trust, information and convenience deficit between car maintenance providers and consumers. The Select + tyre retail format cures the trust and information deficit. These stores feature digital-led experience in choosing tyres, understanding various tyres and their relevance to the consumers’ driving needs. Tyre consultation is no longer limited to taking the best guess on tyre price but helps the consumer identify the most suitable choice depending on their car type and driving conditions. The process is enabled through an interactive digital kiosk where customers can pick between an array of choices offered by Bridgestone.
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Q. Is there a lack of know-how from the buyers perspective resulting in inappropriate choices? A. As I mentioned earlier, tyres do garner a lower involvement when it comes to overall vehicle experience. One only pays attention to tyres when they need to be replaced or in case of damage. With our new concept stores, we want our customers to be more aware of not only buying the right tyres but also adopt the right tyre services that can give them longer tyre life and savings. Q. What is the current sales network and what is the expansion plan to build on this new store launch? A. We currently have more than 450 select stores pan India. For the new Select + stores, we have launched the first outlet in Pune and there are plans to expand in major metros by end of 2021.
of the COVID-19 pandemic. Apart from this, there are multiple digital platforms launched to support our dealer community and ease of doing business. Q. How tricky is inventory management given the volatility of demand from both the OEM and aftermarket perspective? A. The demand has been buoyant rather than being volatile thereby putting stress on our inventory levels. It’s a nice problem to have. The bigger concern has been the shipping line crisis especially from South East region which is our major source of raw material. However, an agile approach has enabled us to circumvent this challenge successfully.
“The demand has been buoyant rather than being volatile thereby putting stress on our inventory levels. It’s a nice problem to have.”
Q. In H2-2020 we’ve heard of a shortage in performance tyres for the aftermarket? How has the industry tackled this situation? A. We have embarked on an accelerated program to develop the performance tyres which have reasonable demand. In the meanwhile, the government has also issued approval for the import of the category of tyres that are not domestically manufactured. Hence the vacuum will be filled soon enough.
Q. How are you leveraging the accelerated digitalisation? A. Digitalisation has been a boon in 2020. Not only did it enable us to innovate and extend services to our customers in a safe environment but it also underlined our resilience and agility as an organisation. Our Contactless Tyre Servicing platform called ‘Bridgestonebookmyservice’ enables customers to take an online appointment in a few clicks, making them spend less time in outlets with these pre-planned visits. The planner will also allow Bridgestone channel partners to implement appropriate social distancing measures at the outlets, which are necessary in times
Q. How are you managing the supply chain even if it translates to hand holding your partner suppliers/ancillaries in the chain? A. Yes, 2020 has been quite challenging for all businesses and it is through close collaboration with our suppliers and dealers that we have gained accelerated momentum. Our vetting process ensures our partners/ suppliers have the resilience to overcome challenges. Thereby ensuring that the system is intact and works with agility. During the pandemic, our focus on safety and quality also translated into ensuring that our suppliers and WWW.AUTOCOMPONENTSINDIA.COM
Upfront | Exclusive partners did not compromise on these factors, especially amidst a crisis of this magnitude. For dealers, we also rolled out support in terms of ease of doing business including stock liquidation program, timely incentive payouts etc. This combined with innovative solutions led to more business for them. Q. Did the vehicle OEMs handhold you (and tyre manufacturers on the whole) through this pandemic marred financial year? What were some of the initiatives to ensure sustenance in the chain, from tier1s to beyond? A. The pandemic spared no one, the entire automotive sector’s ecosystem was impacted. One of the reasons that the automotive sector came through this situation was that they were respectful of the limitations that all of us faced. Q. What is the latest on input raw material (natural rubber)? Any collaborations and new markets tapped as a counter-strategy? A. As you may be aware the natural rubber prices are on an upward trajectory. It is a commodity product, of course, we do pay some premium for sourcing quality products. However, the pandemic has steered us to find local quality
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“The pandemic has steered us to find local quality alternatives and we have a balanced supply chain from local and imported sources.” alternatives and we have a balanced supply chain from local and imported sources. Q. Has the government done enough to ensure a stable ecosystem? A. The government’s intervention in stabilising the automotive ecosystem has been welcomed and well-received. The PLI that they have announced for the auto component sector is a welcome step. Their support to the MSME sector, which forms a major part of the auto ancillary industry has also helped revive confidence Q. Your take on the introduction of label rated tyres on the lines of EU? A. In the Indian context, labelling is applicable for rolling resistance and wet braking impacting fuel efficiency and safety respectively. It would surely enhance the awareness of consumers and steer away from
price-led decision making to a more informed one. Q. How have exports fared in comparison? Any impact of growing protectionism and the post-Brexit trade dynamics? A. We are focused on the Indian market as of now and are committed to providing the Indian market with quality products. Q. When do you see the company and the tyre industry as a whole fast track recovery and attain growth on a near medium-term basis? A. The tyre industry is slowly moving towards normalcy. The fact that we at Bridgestone India have resumed three shifts at both our plants in Indore and Pune is an indication that demand has increased and hence the need to increase supply. ACI -----------------------------------------Parag Satpute assumed the role of Managing Director of Bridgestone India in November 2017. Passionate about driving positive change, he has been spearheading Bridgestone’s goal of becoming a Dan Totsu in the Indian market. Parag attended Warwick Business School, Stockholm School of Economics, and the International Institute of Management Development.
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The Substitutional Alloy Largely constituting MSMEs, non-ferrous metal component manufacturers are striving hard to stage a recovery from the pandemic induced degrowth. Ashish Bhatia with inputs from Deven Lad traces the headwinds and tailwinds around ancillaries based out of Asia’s largest brass micro-market.
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n alloy of copper and zinc in varying proportions, all through the pandemic, the non-ferrous metal ancillaries have recorded a loss of sheen compared to pre-Covid-19 quarters. Attributed to the decline in automotive business revenue share, the foundries into manufacture of the substitutional alloy - brass based in Jamnagar, known as the jewel of Kathiawar, on the coast of the Gulf of Kutch, in Gujarat were faced with a myriad of problems. Perhaps, for the first time in decades, the existence of the businesses that have made Jamnagar, Asia’s largest automotive and non-
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automotive brass ancillary micro market has been threatened to such an extent in over 80 years since inception. Of all the headwinds, the hike in commodity prices continues to eat into their profits, nearly one year into the grinding halt of the economy. Demand outlook, however, is showing a relative improvement, on a quarterly basis, say stakeholders.
Precision brass component manufacturers
Take for instance, Jamnagar based Ishita Industries, manufacturer of precision brass
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Picture Courtesy : Swati Enterprise
Picture Courtesy : Meera Brass Products
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Picture Courtesy : Arjan Industries
Picture Courtesy : Patel Brass
Lakhabhai Keshwala, President, Jamnagar Factory Owners Association (JFOA).
The brass ancillary units of Jamnagar dabble in both pure auto and electronic products with some producing over 3000 variants on an annual basis.
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components. Sagar Patel, Chief Executive Officer, breathed a sigh of relief at his business staging a recovery. However, the company missed its turnover benchmark of sixty crore in FY2020-21 due to poor demand for the jewel of components. An ancillary supplier to nearly 15 Original Equipment Manufacturers (OEMs), the company’s regular business cycle accounts for OEM supplies, in tranches, from its inhouse raw material (Import based), extrusion plant, production unit and finish plant. Dabbling in both pure auto and electronic products including adapters, blocks, bolts, bushings, cages, clamps, collars, couplings, dowels, electronic connectors, electrical pin, electrical socket, earthing and grounding component, fasteners, fittings, gear parts, the company customises nearly 1100 samples to produce an annual 3000 variants, as per requirement. Patel expressed concern over the hike in London Metal Exchange (LME) benchmark prices for commodities like copper and zinc known to have sent production costs spiralling northwards. A source at another manufacturer of non-ferrous metal components, Swati Enterprise, spoke of the community having seen better days in office. Pre-Covid-19, production AUTO COMPONENTS INDIA n MARCH 2021
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over Story works on the plastic injection moulds with plastic ancillaries. Besides interior and exterior components, the company also caters to the lighting, engine and transmission, brakes, suspension, and clutch components for automotive dealers. Exclaimed Raj Chandani, Chief Executive Officer at the company on behalf of his peers, “It is a tough business environment!” “Raw material prices are increasing on an ongoing basis making it a very tough market to operate in. We are personally not taking on new orders because of this instability right now,” he explained.
Pictures Courtesy : Patel Brass
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The nearly daily hike in metal prices has particularly hit the ancillaries hard in Q1FY2021 and Q3FY2021.
was claimed to be in the range of 50 to 57-tonne with a bulk of the business credited to the OEM exposure. A manufacturer of brass auto parts like inserts, fuel nozzle, flat washer, hoses, valve parts, automobile set screw, wing nuts and benjo bolts, the nearly daily hike in metal prices, he confirmed, has particularly hit the business hard in the first (Q1FY2021) and the third (Q3 FY2021) quarters of FY2021. Without mincing
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words, he expressed concern on the continuing price hike in commodities constituting the alloy, in varied proportions, as per application needs. Arjan Industries has invested nearly five decades in the business of precision turned brass components and caters majorly to the automotive sector. In the business of manufacturing automotive hoses, automotive inserts and automotive valve parts, the company also
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As per reports, copper prices have increased from USD 7756 per tonne on February 02, 2021 to USD 8807 per tonne on February 19, 2021, registering a spike of approximately 14 per cent. Hitting a nine-year high, this rally in global copper prices is attributed to a supply deficit. Mentioned Lakhabhai Keshwala, President, Jamnagar Factory Owners Association (JFOA) representing the 8000 member strong community of Asia’s largest brass ancillary market, supplying an estimated 2000 parts to the automotive industry. Sharing his thoughts on the price hike, he opined, it was a foul play. “This price hike is artificially created on a global basis, and even the Government of India cannot control it. In a week,
prices were raised to Rs.420 (with a nearly Rs.60 hike),” he claimed. Echoing the discontent of ancillaries owing to recurring hikes, Keshwala drew attention to the latter having no option but to buy at higher costs owing to supply-side pressures. “All of us are waiting for the prices to cool down as we are left with no choice but to meet our supplyside commitments. During the pandemic, there was no demand so obviously, it’s the miscreants who bet on these prices are behind the hike,” he claimed. There are however exceptions like in any industry. Explained Chandani, for companies like Arjan, not dealing directly with any traders for procuring scrap of copper or zinc, the impact on the finished goods price was not as much given that the prices are defined by the LME.
In the nick of time
Negating the hike in commodity prices are a few positives for the industry. For instance, the MSME tranches announced under the Atma Nirbhar Bharat Abhiyan by the Finance Minister Nirmala Sitharaman, in May 2020, is believed to have addressed an extent of the industry’s woes. The government had proposed a total kitty of rupees three lakh crore, collateral-free loans for MSMEs, fully guaranteed by the Centre. A principal repayment moratorium of 12 months and a capped interest rate without any WWW.AUTOCOMPONENTSINDIA.COM
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The leverage
The diversion of imports from China to India in the wake of the pandemic has to an extent given a new lease of life to the ancillaries in Jamnagar. It is an opportunity to get back on the growth track, say some. Stated Patel, there are green shoots on the export front. “We’ve benefited as we because of China as we are getting
requests from the USA for parts previously imported from China. Besides us in Jamnagar, expect the import diversion to also benefit other brass hubs like Punjab and Ahmedabad even though the regions are not as big.” Not just from the USA, expect demand from other foreign countries to benefit local manufacturers, opined Keshwala. Admitting it to be a challenging year for manufacturers, the spokeshead at Swati Enterprise, called for the need to strategise to be able to offer such new clients, competitive rates, for winning business. There is a need to reduce the sole China import dependence of many automotive companies in the country. Added Keshwala, it could be achieved by offering desirable quality at competitive prices.
New efficiencies and alternatives
Companies like Arjan are using the lull to add to their efficiencies. For instance, it has added a few 100 per cent automatic lines for assembly of components. The company has put in place a dedicated team for specific tasks and for procurement of costeffective raw materials in order to circumnavigate disruptions like the commodity price and import duty hikes. Lauding the local manufacturers for competing at par with advanced markets like China, he added, Jamnagar based ancillaries like Arjan had their hands full with export orders. Aware of the metal parts turning obsolete with the penetration of electric vehicles, the brass ancillaries are additionally diversifying into non-traditional
revenue streams beyond automotive. The latter, according to Chandani, also guarantees a low volume business with higher margins in comparison to the high volume and low margin, cut-throat margin associated with the automotive sector. Others like Patel, are pursuing alternatives like transforming the brass portfolio to aluminium owing to the demand of the latter’s strength and lightweighting capability. “We have also started making aluminium components. So if there are a 100 parts manufactured, 10 could be of aluminium with 90 in favour of brass to begin with,” he concluded. Others opine, if resource availability is not stabilised, it wouldn’t be wrong to expect brass to turn into a premium commodity in the near term. ACI
A birds eyeview of the brass automotive foundries of Jamnagar, Asia’s largest automotive and non-automotive ancillary micro-market.for the non-ferrous metal.
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Picture Courtesy : Patel Brass
guarantee fee was also announced. Changing the definition of MSMEs, the eligibility criteria for micro enterprises was raised from Rs.25 lakh to rupees one crore for manufacturing enterprises. The limit for small manufacturing enterprises was raised from five crore to Rs.10 crore. The limit for medium manufacturing enterprises was raised from Rs.10 crore to Rs.20 crore.
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Meeting Customer Expectations The Automotive Research Association of India (ARAI) rose to the challenges to meet customer expectations in unprecedented times. Ashish Bhatia highlights the efforts made.
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pandemic and a new chief ! Despite changes in the dynamics of business, as usual, the Automotive Research Association of India (ARAI) rose to the occasion to meet customer expectations in challenging times. In keeping with the role of the catalyst, according to Dr Reji Mathai, Director, ARAI continues to facilitate collaborative innovation within the ecosystem for cost-effective and indigenous technology development. “One such initiative is identifying key components which are currently being imported and indigenising them,” he exclaimed. In his first exclusive interaction as the new chief, Dr Mathai cited how framing regulatory norms, taking
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into consideration all the stakeholders has proved to be an enabler in providing a level playing field to all. At ARAI, the focus is on framing a future technology roadmap and prioritising safety aspects.
Leapfrogging to BSVI
There is no questioning the resilience of Indian Original Equipment Manufacturers (OEMs) and their suppliers. Here test agencies like ARAI played their part by building BSVI compliance test facilities on a fast track basis according to Dr Mathai. “We also had to ensure adequate competency within the testing team to understand the minute implications of BSVI regulations and
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Special Reads
Battery Vibration Test Facility
E-Motor Test Bed
Battery Module Test Facility
Battery Abuse Test Facility
Battery Pack Test Facility
its flawless compliance,” he expressed. Ensuring 24 by 7 operations from Q2FY2019-20 until the Covid-19 lockdown was announced in the third week of Q42020, ARAI with its structured planning of services contributed significantly in getting the OEMs to be ready for the launch of their BSVI products ahead of the April 01, 2020 rollout deadline. Notably, it was achieved within the restrictions of operable manpower and movements.
Components localisation
At ARAI, the safety and performance standards for type approval testing of electric vehicles is said to be in place (notified under CMVR). The Phase Manufacturing Program (PMP) for localisation of EV
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components has also been notified by the Government of India. Critical to availing an incentive under Fame II policy, ARAI has all the checks in place to help out in an evaluation for PMP localisation compliance. Through the CoE for e-mobility, for instance, ARAI is offering comprehensive tools and test equipment to support the industry in design, development, validation, testing and certification of electric vehicles.
All things tech
Technology products at ARAI include Battery Management System (BMS), portable battery pack (swappable), AC/DC charging stations to name a few. At ARAI, the focus is to gauge
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industry requirement before commercialising a technology. For instance, an e-axle powertrain kit for three-wheeler is expected to be an import substitute. As per Dr Mathai, it is a scalable solution for both OEMs and as a retro-fitment application. A thermal BMS system for Indian use cases for two and three-wheelers with lithium-ion batteries is being built to address thermal conductivity, higher resistance and light-weighting. Besides pioneering ‘Big Data’ of India use-cases for ADAS, it’s open framework of EV chargers is being adopted by the industry.As an outcome of a Memorandum of Understanding (MoU) with Praj Industries, ARAI is also working on joint development of ethanol-
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E-Axle
Battery Management System
AC DC Charging Station
Swappable Battery Pack
based mobility solutions. Expected to drive the flex-fuel roadmap of the government, ARAI has developed a dual-fuel technology for diesel engines (diesel + CNG).
Building efficiencies
At ARAI, the grinding halt of the business was used to identify the gaps and bridge them. Keeping an eye on potential segments like electrification of small vehicles, fuel-cell applications, skill development, push for start-ups and Micro, Small and Medium Enterprises (MSMEs), ARAI built on its soft competencies. From testing and validation, certification and homologation, design and advisory and consultancy proved to be a key enabler. Over and above these, education and training, audit and inspection, research and
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development, India specific studies and data generation, indigenous and cost-effective technology development backed by digitisation made a significant contribution. In keeping with the times, and to safeguard time, ARAI offered remote auditing (for testing and validation) or issuing digital certificates. Mentioned Dr Mathai, “This ensured that OEMs could execute their plans of launching new models and meeting the Conformity Of Production (COP) requirements.” The focus at ARAI is on meeting customer expectations; collaborative R&D to develop better solutions and
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technologies to help curb the import dependency; mentoring MSMEs and startups. As ARAI defines the roadmap for 2030 and charters an implementation plan, despite a relative hold on new development programs, concluded Dr Mathai, “execution and research at ARAI continues.” --------------------------------------Read the excerpts of the exclusive Upfront interaction with Dr Reji Mathai, Director, ARAI. WWW.AUTOCOMPONENTSINDIA.COM
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Collaborative Innovation In his new role as Director at Automotive Research Association of India (ARAI), Dr Reji Mathai has his task cut out. He shares with Ashish Bhatia, his focus on collaborative research and development with the industry.
Q. You’ve come at a very critical time with the automotive industry grappling with the broad choices of innovation, sustenance, localisation and compliance. How according to you is ARAI gearing up to play the role of a catalyst? A. The Union budget 2021-22 has provided ample indication of the Government’s intent to promote innovation and support for the mobility sector. ARAI continues to facilitate collaborative innovation within the ecosystem for cost-effective and indigenous technology development. One such initiative is identifying key components which are currently being imported and indigenising the same. Framing regulatory norms, taking into consideration all WWW.AUTOCOMPONENTSINDIA.COM
the stakeholders has been an enabler in providing a level playing field to all. The next step is to frame a future roadmap for bringing in new norms, especially to address the safety aspects. Q. How challenging according to you was the calendar year 2020 and the financial year 2021 on a Year-to-Date basis? Starting from the pre-BSVI rollout preparedness to the eventual rollout, and then having to see through the evolving operational dynamics in the pandemic? A. Leapfrogging of emission standards in India to the BSVI level has clearly shown the resilience of Indian OEMs/suppliers and the agility of test houses like ARAI which had to establish BSVI
complied test facilities on a fast track basis. We also had to ensure adequate competency within the testing team to understand the minute implications of BSVI regulations and its flawless compliance. ARAI worked practically 24 by 7 from the second quarter of FY2019-20 until the day when the lockdown was announced in the third week of March 2020. ARAI’s structured planning of services has helped the OEMs to be ready for the launch of BSVI products well within the stipulated time frame of April 01, 2020. After a forced break of about two and a half months due to pandemic, ARAI resumed the operations, reorganising its infrastructure through the digital route, to complete the balance work of BSVI certifications. We are proud to say that it was done to the absolute satisfaction of the industry. It has been a very challenging time for everyone in ARAI, to meet the expectations of our customers, within the restrictions of operable
manpower and movements. Q. Was the lull in the market used to add to efficiencies and more muscle in terms of building infrastructure for the needs of the foreseeable future? A. This period was very well used to identify the gaps and tap the potential areas picking up in spite of the pandemic impacts such as electrification of small vehicle segments, skill development, push for startups and MSMEs, and the upcoming interests in fuel cell application, etc. We used this period particularly for creating soft competencies. Q. Kindly elaborate on the changes that took place across Testing & Validation, Certification & Homologation, Design & Development, Standardisation & Harmonisation, Advisory & Consultancy, Education & Training, Audit & Inspection, R&D, India specific studies & data generation, indigenous & cost-effective technology development to name a
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pfront | Exclusive etc. is already available at ARAI with a few advanced facilities in the planning stage. The ‘Passive Safety’ facility houses the first ‘Public Domain Crash Test’ facility and is being extensively used for certification and development work by the Industry. This also includes crash testing of EVs. It also houses a state-ofthe art ‘Pedestrian Test’ facility. Further advancement in the facility is in the planning stages.
Virtual Test Bed
few fronts. A. The use of a digital platform and digitalisation has been the key enabler during these times. For ‘Testing & Validation’, remote auditing was carried out, wherever feasible. Along with it, digital certificates were issued to overcome the delay in mailing hard copies. This ensured that OEMs could execute their plans of launching new models and meeting the Conformity Of Production (COP) requirements. Sprucing up our IT infrastructure helped us to reach out customers through webinars and online meetings. Even on the education and training front, our e-learning initiatives were introduced. All the proficiency improvement programs were held through VC. In order to build a start-up eco-system, Department of Heavy Industry (DHI) has enabled ARAI to create an innovation platform ‘Technovuus’ to address the industry pain points in an effective manner. While most of the new development programs were put on hold by the Industry, ARAI continued its evaluation and research programs in a diversified
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manner. New areas of e-mobility, full vehicle development program, material characterisation, alternate fuel engine development, etc. continue to progress. Reducing the impact on the environment and import dependency through the introduction of alternative fuels are the thrust areas being pursued by ARAI. Source apportionment studies have also been carried out for various cities to understand the contribution of the automobile sector in ambient air pollution. Q. How far have the upcoming facilities like Engine Emission Development, Pedestrian facility with FlexiPli Impactor, CoE for tyres and the Hydrogen test facility come? A. The ‘Engine Emission Development’facility is already established. Apart from this, we are also planning to build a hydrogen-fueled engine development test cell. As a part of tyre CoE, the tyre ‘Rolling Resistance’ facility is established. Comprehensive services under one roof including tyre NVH, vehicle performance, simulation,
Q. Any prototypes on the new product development front that you are particularly excited about? Like in the past, be it the aluminium superstructured light-weight low-entry 12m city bus, EV with battery and super capacitor (on the lines of ISRO tech), Intelligent Vehicle Controller (iVCON) or the Bharat EV DC Charger? A. Under the technology innovation efforts, a dedicated team of experts is working in the domain of design and development of technology products. Some of these include the Battery Management System, portable battery pack (swappable), AC/DC charging stations, etc. Gauging the industry requirement and based on the responses during our interaction with various start-ups, these technologies are being commercialised. Other initiatives include the development of an E-axle powertrain kit for three-wheeler which will be an imports substitute and a scalable solution for both OEMs and as a retrofitment application. A thermal BMS system for Indian use cases for two and threewheelers with lithium-ion batteries to address thermal conductivity, higher resistance and at the same time address light-weighting is also being developed. Database generation for Indian use cases considering different environmental and traffic conditions for ADAS application is also being worked on. EV chargers and its knowhow, developed by ARAI, are also being adopted by the industry to make their respective chargers. WWW.AUTOCOMPONENTSINDIA.COM
Upfront | Exclusive Q. The government is pushing for flex-fuel engines. What role do you see ARAI play in helping the industry make a seamless transition? Dual-fuel engines are not new per se for the body. Do you see manufacturers pursuing it aggressively yet? A. ARAI is at the forefront of developing alternative fuel technologies for the auto industry. We have signed an MoU with Praj Industries to jointly develop and promote ethanol-based mobility solutions. Availability of ethanol in the coming years will drive the Flex-fuel vehicle program. The Government will provide a timeline for introducing E20. We have developed a dual fuel technology for diesel engines (Diesel + CNG) for SUVs, tractors, off-highway vehicles and buses. Some manufacturers are expected to launch their dual-fuel vehicles in the near future. Q. How big a role do you expect the E-Mobility CoE to play in the nearmedium and the long-term across concept design, and component sizing, system development, system integration and testing, and system calibration? A. ARAI’s CoE for E-mobility is equipped with comprehensive tools and test equipment to provide support to industry in design, development, validation, testing and certification of electric vehicles. This includes the facilities for electric motors, inverters, batteries, controllers, chargers, etc. ARAI extends support to the industry in lightweight designs, structural durability, thermal optimisation, etc. required for electric vehicles. Q. With manufacturers looking at localisation of components as an important means for import substitution, especially for electronics, what checks does ARAI have in place to ensure standardisation and safety compliances? How well equipped are the test rigs for instance? A. Safety and performance standards for type approval testing of electric vehicles are in place and are WWW.AUTOCOMPONENTSINDIA.COM
notified under CMVR. The Phase Manufacturing Program (PMP) for localisation of EV components has also been notified by the Government of India. For availing of an incentive under Phase 2 of FAME India Scheme, compliance to localisation requirements as per PMP is mandatory. While performing an assessment of the EV model for FAME 2 eligibility, ARAI carries out an evaluation for PMP localisation compliance. Q. How mature is the ARAI India specific database especially spanning material data bank and the vehicle duty cycle? Any metrics that you can share with us to help us sense the scale of implementation? A. ARAI’s Material Data bank is quite mature and addresses monotonic, fatigue properties, electrical and acoustic properties as well. The special capability of generating high strain rate data for crashworthy materials is also available at ARAI. We also have useful databases like ‘Anthropometry’ data for Indian driving population, Indian road load data,
Indian vehicle duty cycle data, etc. These are very useful design databases for the localisation of the products. Q. How close is ARAI to functioning at the pre-Covid levels in tandem with the growing production and sales of manufacturers? A. We expect the performance of this quarter to be comparable to that of the previous year. All our labs and offices are fully functional albeit taking due care of the government guidelines announced time to time. The work inflow is improving too, thanks to the growing production and sales. Q. Have domestic priorities superseded the export requirements of the industry like in the case of export homologation? How has the exposure shaped month-over-month as a ballpark proportion? A. Domestic priorities will always take precedence. However, the focus of the Government of India is to make the products ‘Made in India’ internationally competitive in terms of quality, which in turn would provide an opportunity for enhanced growth potential for
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exports. Based on the available data published by SIAM, the cumulative percentage increase for the exports, for the complete range of vehicles, for the year 2019-2020 as compared to the year 2018-2019, was higher than that for domestic sales. On the one hand, exports were higher, but the domestic sales were less compared to the previous year. Also, for the difficult year that we are in, there is just a gap of three per cent in favour of domestic sales as compared to the same period in the year 2019-2020. In the past few years, the Government has introduced various safety and emission regulations to bring the national automotive industry at par with those in the developed markets like Europe, Japan, etc. Whereas on one hand, it will provide better quality products to the national consumer, on the other it will give impetus to exports by catering to the needs of the larger and developed markets. Q. Any additions to being recognised by certification authorities of Singapore, Netherlands and Australia that you expect to come along? A. In addition to the recognitions you mentioned, we have obtained recognition, viz. Recognition by National Transport Safety and Environment Laboratory (NTSEL), Japan for motorcycle exhaust gas emission test as per TRIAS31-J044(2)-01. The Telecommunication Engineering Centre (TEC), Government of India has accredited EMC and Environment Laboratory at ARAI as Conformity Assessment Body (CAB) for telecom equipment testing. ARAI is also authorised by the approval authority from Europe, namely RDW, Netherlands, to conduct CoP Verification audit at the manufacturer end. Discussions with different authorities and countries are in progress towards accreditation. Q. How do you plan to continue creating a sustained pool of skilled
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manpower through the ARAI Academy? Is the industry a direct beneficiary of this exercise and what skillsets are the need of the hour? A. ARAI has embarked upon a program of building up human resources by commencing educational program since 2004 in collaboration with various universities in India and abroad. The skill development initiative of ARAI is carried out through the ARAI Academy, wherein training programs (for industry professionals) and learning courses (through universities) are offered. We have conducted more than 300 training programs and trained over 16,000 delegates from industry and academia. We have also been given a herculean task of spreading EV mobility awareness among engineering college students by the Department of Heavy Industry (DHI), Government of India. Our learning courses are aimed at ensuring the best possible employability and entrepreneurship skills for our students. The purpose of this program is to create a new breed of engineers with an in-depth theoretical and practical knowledge to meet the needs of the mobility industry. There is a need to shift from ‘Automotive Engineering’ to new areas like Connected, Autonomous, Shared and Electric (CASE) Mobility and we have already started courses related to ‘Electric Mobility’, ‘Hybrid Electric Vehicles’ and ‘Autonomous Technology’. ARAI Academy also helps SAEINDIA to conduct the ‘Design Series’ competitions like BAJA, SUPRA and AWIM. The skills students inculcate through these competitions have applications in the real world, especially in the automotive industry. Q. Any development of plans to help the Government add new vehicle inspection and certification centres across the country? A. We have facilitated the establishment of Inspection and Certification (I&C) centres in four states and another five (I&C) centres are being set up in different states. These are the model
centres under the support extended by MoRTH. In addition to this, we are also working with the State Transport Departments for proposed centres in their respective states. Q. How far have the assignments on the truck, trailer and ambulance code and bus body plant accreditations come over the last financial year? Any tipping point for the segments? A. The Bus Body Builders’ facility accreditation system was notified for implementation from April 01, 2013 by the Government of India. The test agencies notified under CMVR have since then granted accreditation to bus bodybuilders. ARAI has awarded 350 accreditations to various bus builders across the country. For trucks, trailers and ambulances there is no such accreditation system for bodybuilders. However, the Government of India has notified AIS standards in CMVR which are used for granting type approvals to such vehicles, viz. AIS 093 (Rev. 1) for Trucks, AIS 113 for trailers and AIS 125 (Part 1) for ambulances. All original equipment manufacturers and few of the second stage bodybuilders have already taken approval as per the notified standards. The other truck and trailer body builders are expected to follow suit. Q. What are the near-medium and long-term priority focus areas, to sum up? What is your vision for ARAI in your tenure and how do you plan to leverage the resources in a VUCA environment bringing to the table your invaluable experience? A. Collaborative R&D with industry to identify and develop materials with better performance and the potential to help curb the import dependency. Nurturing R&D and innovation in different streams and departments through ideation events. Mentoring MSMEs and Start-ups to have better commercialisation. Defining the roadmap for 2030 for ARAI and chartering an implementation plan besides developing and setting up new facilities for ADAS, cylinder testing etc are my priority focus areas. ACI WWW.AUTOCOMPONENTSINDIA.COM
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All Things Resilience In its first-ever digital edition, CES 2021 was testimony to all things resilience from the global automotive components and tech industry. Ashish Bhatia picks out select showcases worthy of catching your attention.
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ES returned in 2021, in the first-ever digital edition. A whopping 2000 companies including 700 startups from across 37 countries unveiled next-gen innovation aimed at bettering the future. Consumer Technology Association (CTA), the owner and producer of the technology event attracted participation from startups to tech giants. Averred Gary Shapiro, President and Chief Executive Officer (CEO), CTA, “The all-digital CES 2021 engaged the global tech community to experience innovation, make connections and conduct business”. In a testimony to the global automotive components resilience and strength of innovation despite it being testing times, the 2021 edition highlighted advances made in 5G, vehicle technology and AI. Bosch, Caterpillar, Intel, Mercedes-Benz, General Motors, Panasonic, Sony, Bridgestone, Indy Autonomous Challenge, John Deere, Sono Motors and Volvo Penta among other automotive and tech companies to use the forum for announcements, product launches and in general to connect with customers. General Motors, for instance, launched new product lines which included the Cadillac eVTOL, a concept air taxi besides announcing a new business unit devoted to electrifying the
AUTO COMPONENTS INDIA n MARCH 2021
goods delivery market. Microsoft stressed the need to ensure cybersecurity and customer privacy protection emphasising on the tech industry’s responsibility to exercise conscience. With ‘Tech Innovation Accelerated by Covid-19’, ‘Consumer Privacy and Trust’, and ‘Global Tech Challenge’ as the underlying themes, attention was drawn to innovations like smart air filtration systems. The forum also called for the need to increase customer trust and handing over the consumer, greater control over their data. Through the ‘Global Tech Challenge’, launched last year in partnership with the World Bank and CTA, tech solutions were rewarded in the areas including resilience in India. CTA also used the forum to commit to driving diversity in tech with a round of investment in VC fund Plum Alley, a part of the USD 10 million commitment set aside for venture firms and funds that invest in stakeholders like underrepresented entrepreneurs. Country Group Organisers were credited with bringing large delegations of exhibitors including from Canada, France, Israel, Italy, Japan and South Korea. Nigerian and Russian startups were featured for the first time. The hybrid CES 2022 will take place in person in Las Vegas, and digitally between January 05-08, 2022. WWW.AUTOCOMPONENTSINDIA.COM
International Raythink The overall solution provider for monitoring and display of vehicle-assisted driving, Raythink made its debut. It showcased the wide-angle spatial imaging AR HUD system positioning it as the core application aimed at intelligent vehicle cockpits. Using patented technology - OpticalCore® to a wide-angle Field Of Vision (FOV) of 23 degrees * 5 degrees at 900mm eye relief, and VID 15m ~ infinity is claimed to aid in attaining independence from HUD displays. The AR visual effect, for instance, claims to eliminate ghosting on any windshield. The AR Generator® SDK, AR recognition algorithm and platform software system architecture are claimed to offer a safe and comfortable AR driving experience on any HUD as it integrates environmental recognition with multiple data sources and the independent AR rendering engine, in combination with AI-enabled visual-spatial coordinate correction. The AR HUD display product combines
ADAS multi-sensor environment perception, map and navigation, and visual-assisted technology to offer a precise lane positioning coupled with intelligent driving functions display. It includes lane-level navigation, Front Collision Warning (FCW), Pedestrian Collision Warning (PCW), and Lane Departure Warning (LDW).
StradVision StradVision announced a collaboration with D3 Engineering. The automotive front camera solution born out of this collaboration is known to integrate a D3 DesignCore® platform for product development with StradVision’s deep learning-based front camera software ‘SVNet’. StradVision provides six key perception features of SVNet including lane detection, traffic sign detection, traffic light detection, vehicle detection, pedestrian detection, and free space detection to the virtual demo platform. The platform is claimed to reduce consumption of computing power according to Junhwan Kim, Chief Executive Officer, StradVision. He claimed it achieves higher efficiency in memory usage and energy consumption with the freedom to customise and optimise to any System on Chip (SoC) courtesy a patented and cutting-edge Deep Neural Network. D3 DesignCore®, according to Jerome Barczykowski,
Thundercomm
Intelligent cockpits are pivotal to the human-machine interface. Thundercomm showcased the E-cockpit Solution 4.5, built on the third generation Qualcomm® Snapdragon™ Automotive Digital Cockpit Platform. It features a software platform of QNX Hypervisor 2.1 and is known to run QNX 7.0 and Android P operating system. The fusion cockpit
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Business Development Operations Manager at the company, when combined with StradVision algorithms can accelerate time-to-market while reducing the cost and risk of production and product development. SVNet, an AIbased object recognition software is claimed to seamlessly work with other sensors such as LiDAR and RADAR to achieve a surround vision. It is known to be in use for mass production models of ADAS and autonomous driving vehicles, supporting safety function L2-4, and is expected to be deployed in over 8.8 million vehicles.
platform is based on SOA and enables developers to develop, change or upgrade services in an efficient manner. The intelligent engine solution and AI assistant solutions are equipped to cater to different customer needs. A highlight is the support for autonomous parking, through reuse of the computing power of the in-built cockpit chip.
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DriveU.auto DriveU.auto won the CES® 2021 Innovation Awards Honoree in the ‘Vehicle Intelligence & Transportation’ category for its autonomous vehicle teleoperation connectivity platform. As AV teleoperations are known to require uninterrupted, low-latency, high-capacity connectivity, the 4k video, sensor data and control commands are claimed to be transferred in real-time between vehicle systems and the remote driver. Given the limitations of one cellular network in offering the connectivity required and in offering stable bandwidth and coverage, the need is for multiple networks in parallel over the use of one modem. DriveU.auto claims to provide superior connectivity for AV teleoperation, using dynamic video encoding, low latency algorithms, optimised forward-error-correction
and cellular bonding. It offers high-quality video, lowlatency, and ultra-reliable connectivity.
Anycubic 3D printing company Anycubic, showcased the new Mega SE and Wash & Cure Plus models at CES 2021 expected to be commercialised as early as May 2021. James Ouyang, Vice President of R&D at Anycubic said, “Moving forward, Anycubic will continue to invest in R&D and diverse partnerships to launch 3D printing equipment and solutions that are reliable, easily deployed, and in line with actual production needs.” Claimed to be a beginner-friendly Fused Deposition Modelling (FDM) machine, the Mega SE adopts a patented, glass lattice structure, preventing warping, ensuring stickiness when heated, and offering an easy handle on cooling. It supports smooth material insertion and offers a quiet printing environment with the use of the blue Capricorn high-temperature Teflon tube and the TMC2208 silent drive. With the help of the dual-gear extruder, it ensures a
Cenntro Automotive
Cenntro Automotive Group (Cenntro) is aiming to expand with a purpose-built, all-electric Class 4 vehicle aimed at the last-mile urban delivery market. CityPorter boasts of features like up to 220 miles on a single charge, and a payload of 2585 kg (5,700 pounds), and a top speed of 96 kmph (60 mph). Aiming to showcase it to US fleets and EU fleets in the second half of 2021, the company is engaging in demo programs. Equipped with
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quiet printing environment. The high-performance, dualgear extruder is said to offer excellent printing results for entry-level segment. The Wash & Cure Plus offers a size upgrade and is claimed to solve the post-processing needs faced by large-size, light-curing models.
state-of-the-art telematics it is ideal for fleet management, advanced integration with other business applications. For optimising route planning, reducing downtime, and delivering true big data management. To support the vision, Cenntro is looking to re-establish manufacturing sites in the US and Europe later this year. It will also open an Engineering and Innovation Center in New Jersey in the second quarter.
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International Thunderzee Thunderzee claims its Zincair battery eliminates the risk of fire associated with lithium-ion batteries. It is claimed to offer more energy, weigh less, and cost less besides being environmentally friendly. Known to be designed for low-power discharge and small-scale appliances, the batteries according to Andy Lin, Founder and CEO, Thunderzee are deemed unsuitable for high power applications. Drawing attention to the next generation
of the zinc-air fuel cell, a selfdeveloped high-performance component, claimed the company, it offers higher energy and power over the previous generation. Claiming to have achieved a major breakthrough in electrochemistry of metal-air batteries, the company has to its credit high power metal-air fuel cell components: air cathode, ion membrane, and metal fuel formulation suited to military and commercial applications.
Maxim Integrated Genuine components are a must in critical systems. Maxim Integrated claims to have built a product enabling designers to enhance safety, security and data integrity for vehicle systems. It is claimed to reduce both complexity and code development helping in authenticating genuine components. The DS28E40 DeepCover® automotive secure authenticator is the new addition in to the company’s line of AEC-Q100 Grade 1 solutions for automotive systems. The parasitically-powered authenticator utilises a 1-Wire interface for simple
connectivity to ensure only genuine components are used in ADAS and EV batteries.
All Good Energy (AGE) All Good Energy (AGE) of Taiwan showcased the All Good Battery Pack, a Li-ion battery claimed to feature edge computing BMS and IoT functionality. Its USP is the feature to monitor battery performance in a constant loop. Besides giving clarity on battery performance, it also gives out information on the remaining value
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indicating the repurpose suitability. With an aim to provide easy and seamless access to battery data via APIs on an open platform, the company assures, users will be able to optimise operations and trade batteries fast and easy. On Battery Energy Storage System (BESS) front, the company is collecting data and improving its algorithms thereby adding efficiency to the energy consumption ecosystem.
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MORAI Seoul, South Korea based MORAI showcased the Autonomous Vehicle (AV) simulation solution. By recreating roads, sensors, and even vehicles within a virtual 3D simulation environment, it is claimed to allow users to freely test algorithms and software to study the response to difficult or dangerous scenarios without endangering drivers or vehicles. It grants complete control of the scene to the test operator enabling the test of drastic, diverse weather conditions and unique scenarios. A USP was the data-based scenario creation, wherein pre-recorded traffic data for a specific region can be used to recreate a test scenario identical to the recorded data. This helps reduce the dependencies on the user for manually created test cases without comprising on accuracy.
Panasonic Automotive Panasonic Automotive Systems of America (Panasonic Automotive) showcased its Augmented Reality HUD. Panasonic Automotive leveraged its advancements in optics, volume optimisation and imaging technology, combined with AI technology from its SPYDR cockpit domain controller to render near-field and far-field content for vehicle information. Metrics like speed, object and pedestrian detection, and mapping/route guidance, for a seamless, more engaged and informed driver experience are within its scope. Averred Scott Kirchner, President Panasonic Automotive and Executive Director, Panasonic Smart Mobility, “The HUD market is one of the fastest-growing categories in mobility, but traditional HUDs only cover a small section of the road.” The HUD solutions from the company, he claimed, cover more of
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the roadway, with traditional cluster content like speed and fuel in the near field as well as 3D overlays in the far-field, showing navigation and other critical driver data mapping spatially to the road ahead. Its key features include eye-tracking technology, advanced optics, AI navigation accuracy, vibration control, real-time situational awareness, 3D imaging radar, compact size and 4K resolution.
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International Bridgestone Corporation Bridgestone Corporation (Bridgestone) unveiled ‘Bridgestone World’, an interactive city to showcase how innovations will power a sustainable mobility future. “Active, intelligent and digitally integrated technologies are critical to our goal of creating new value for society and customers through sustainable mobility and advanced solutions,” said Paolo Ferrari, President & Chief Executive Officer, Bridgestone Americas, and Executive Vice President and Executive Officer, Bridgestone Corporation. It gave a sneak-peek into urban, suburban, industrial and transport settings in a future city. It also helped explore
connected products and data-driven services expected to address pain points and improve consumers’ mobility experience.
Blickfield LiDAR manufacturer Blickfeld showcased its automotive LiDAR suite consisting of a mid-range as well as a longrange sensor. The mid-range sensor - Blickfeld Vision Mini with its small dimensions can be customised. For instance, the dimensions of 5 cm x 5 cm x 5 cm indicate compactness, enabling it to be smartly and efficiently integrated into vehicles. It is incorporated into side mirrors, headlights, rear-view lamps, and the A, B, and C pillars to achieve a 360 degrees surround-view. It also enables a Field of View (FoV) of up to 107 degrees and a range of up to 150 metres on
vehicles. It is also claimed to offer reliable data for automated and autonomous driving in urban traffic. It is also claimed to allow the use of multiple sensors per vehicle at a low price. A long-range LiDAR sensor for automotive applications, the Blickfeld Vision Plus is designed for use at the front and rear of the vehicle and covers the detection of small objects at distances of up to 200 metres. Together, (Vision Mini and Vision Plus) are said to enable automation for level 2+ and upward autonomous vehicles. It also showcased the MEMS scanning module 118, a laser scanning unit.
Mando Mando unveiled a new vision based on safety and freedom. The “Freedom in Mobility” entails a vehicle seamlessly communicating with a driver via an integrated module of “x-by-Wire” technology including Mando’s BbW (Brake-byWire) and SbW (Steer-by-Wire). All are connected by the electric hyperconnectivity. While the Smart Personal Mobility Module (SPM Module) connects people with micro-mobility and is touted as the world’s first chainless pedal-assisted system, the “Space Freedom” enables freedom for in-cabin activities beyond the architectural limits of a vehicle. For instance, in the fully autonomous driving mode, a driver is expected to
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be free for tasks other than driving. The SbW, the winner of the CES 2021 Innovation Award Honoree, is claimed to allow the steering wheel to be stowed away when not in use. BbW applied to the brake system is composed of four units of ElectroMechanical Brake (EMB), mounted on “4-corner module (4 wheels)”, “E-Brake-Pedal (Electronic brake pedal)”, and “DCU (Domain Control Unit)”. It eliminates Electronic Stability Control (ESC), booster (brake boost), parking cable, engine oil tube and is operated by pure electric signal. Throw the “auto stow” function, the pedal can be put away when not in use offering more legroom to drivers.
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DEEP DIVES l Union Budget 2021: Auto Components Special l The Rolling Resistance l #International CES 2021 - All Things Resilience
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AUTO COMPONENTS INDIA n MARCH 2021
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COMPONENTS
thA W A R D S 2 0 2 1
INDIA
ACI Awards 2021
Auto Components India, the voice of the automotive suppliers, is immensely proud to announce the fifth edition of Auto Components India Awards (ACI Awards 2021). The pioneering effort of the niche, widely followed B2B2C magazine has taken upon itself to identify and award the torch bearers of the USD 51.2 billion Indian auto components industry over the last half a decade. We especially look forward to building on the past momentum in these unprecedented times. Building on the rousing success of the previous edition held in February 2020, we once again seek your active participation and look forward to the automotive industry, as a whole, extending its full cooperation and support. As we near the fifth edition in March-April’ 2021 (TBC*) in-magazine (or virtual format), we humbly invite all of you to send in the nominations for an edition that is bound to highlight ‘All Things Resilience’ in the pandemic marred calendar year. You are requested to send in your entries latest by February 28’ 2021 as we look forward to acknowledging the inspiring efforts put in, going beyond just the call of duty. In an emotionally exhausting year, despite the fear of the unknown, the wheel of innovation kept spinning and extending hope for a better future only because of you the stakeholders of the industry. Accounting for 2.3 per cent of India’s Gross Domestic Product (GDP) and 25 per cent of its manufacturing GDP, it is no secret that the industry directly and indirectly employs over three million people. The Indian auto components industry is now taking even bigger strides to attain higher localisation levels and turn India into a global hub of design, manufacture and sales. The ability of the industry to innovate and excel, keep pace with the latest technologies and practices, explore two-way bilateral ties to de-risk the supply chain make it even more eligible to be crowned as the global sourcing hub for Original Equipment Manufacturers (OEMs). No surprises then, the Indian auto components industry is poised to become the third-largest in the world by 2025. The fifth edition of ACI Awards 2021 will honour the achievements of the strong and resilient Indian auto components industry under nine comprehensive categories as mentioned below: l l l l l l l l l l l
Auto Components Leader Of The Year. Component Manufacturer Of The Year. Component Of The Year. Shopfloor Management Of The Year. Component Start-up Of The Year. Green Application/Product Of The Year. Auto Ancillary JV Of The Year. Innovative E-Mobility Solution - Supplier of the Year. Export Component Of The Year. Ancillary Of The Year Supply Chain Management Of The Year
The Jury, comprising independent experts, internal and external to the Auto Components India Magazine will evaluate the nominations and single out the winners. The Indian auto component original equipment manufacturers are invited to send in their nominations by duly filling up the accompanying form. The form may be scanned and mailed to the email address mentioned on the last page. Alternatively, you may also download the nomination form available on the Auto Components India website: www.autocomponentsindia.com Methodology: The evaluation process consists of the following steps: 1. An authorised officer of the manufacturer will duly fill the ‘Nomination/Application Form’. 2. The officer will build an effective winning case for the category he or she deems most appropriate. For the 500-word note, he or she, finding the space on the form insufficient, can use the respective company letterhead (duly signed) along with the form. The same will have to be submitted to Auto Components India. 3. Auto Components India will study the information received. 4. Auto Components India will assess each entry to understand the merits of the winning case put forth. If need be, the Auto Components India team may carry out an independent assessment to ensure that full justice is done to a deserving entry. 5. The Jury will choose the winner from the cases/entries/nominations received for the respective category through an in-depth evaluation of the cases/entries/nominations in each of the 11 categories, sequentially. Model of excellence The merit of the cases/entries/nominations will be evaluated by the excellence model tool. It is a the non-prescriptive framework that would recognise the approach towards excellence; towards the applicants’ soundness of approach; the rigour with which the approach was deployed, and if systematic assessment and review were integral to the process. The merit of the cases/entries/nominations will be also evaluated in terms of business excellence. It would look at the many approaches to sustainable excellence. The endeavour would thus be to ascertain how the applicant organisation fares in areas like: l l l l l l l l
Result orientation. Customer focus. Management by processes and facts. People development and involvement. Continuous learning, innovation and improvement. Leadership and purpose. Partnership development. Societal responsibility.
Please fill the ‘Nomination/Application Form’
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COMPONENTS thA W A R D S 2 0 2 1 INDIA
ACI AWARDS 2021 NOMINATION / APPLICATION FORM
Name of company: (in capital letters) .................................................................................................................................. ............................................................................................................................................................................................. Brief Profile: .............................................................................................................................................................. Contact Details: (a) Contact Person: .......................................................................................................................................................... (b) Postal Address: ........................................................................................................................................................... ......................................................................................................................................................................................... City ............................................... State ......................................................... Pin ........................................................... Phone ............................................. Mobile ..................................................... (c )Email Id & Website ...................................................................................................................................................... Please tick the category you want to nominate for: q Auto Components Leader Of The Year. q Component Manufacturer Of The Year. q Component Of The Year. q Shopfloor Management Of The Year. q Component Start-up Of The Year. q Green Application/Product Of The Year. q Auto Ancillary JV Of The Year. q Innovative E-Mobility Solution - Supplier of the Year. q Export Component Of The Year. q Ancillary Of The Year q Supply Chain Management Of The Year
All entries must enclose a 500-word note stating why you deserve to win an award in the respective nominated category. Developments should be for the period between January 01, 2020, to December 31, 2020 .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... .......................................................................................................................................................................................... You may fill in this form, scan it and send it across to autocomponentsindia@gmail.com Hurry! The last date for sending applications is March 10, 2021.
RNI No. MAHENG/2014/55824 Postal Reg no. MCW/320/2020-2022 Post at Mumbai Patrika Channel Sorting Office G.P.O. Mumbai 400 001 Published on 27th of every previous month and posted on 5th/6th of every month.
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