Aftermarket - April 2012 by Infomedia18

INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

Vol. 1 No. 10 April 2012

68 Pages `50

NEWS

CarZ plans 300 by 2017

FACILITY VISIT TVS & Sons

Brought to you by

INTERVIEW

Sumit Sawhney, GM India

Auto Monitor

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EDITORIAL Aftermarket Always Wins WHENEVER the market winds affect the sales of new vehicles, it is the aftermarket segment that shows positive signs—be it better sales of used cars or increased footfalls at the organised aftersales service network. It can be a recession or a slowdown or even on account of the impact on some announcements, the aftermarket always responds positively. And now, this segment is going to witness a little more cheer than usual, especially since the Union Budget presented by the Finance Minister Pranab Mukherjee has nothing significant to directly encourage the auto industry. Every statement pertaining to the industry was discouraging, except that the diesel car was left untaxed. The silver lining on the cloud is the weighted deduction of expenditure on R&D and skilling—a positive thrust given to the manufacturing sector—especially the MSMEs, infrastructure and skill development. Shortage of skilled manpower has been an issue of significant concern to the auto industry, especially in the aftermarket. It is far easier for the OEMs and the component manufacturers to attract talent than the dealerships and the service centres—perhaps due to the image differentiation. The passenger car industry that is slumping received another blow as the overall excise duty for cars has been increased to 12 percent from the existing 10 percent. This has compelled most of the OEMs to increase the prices of their products. In addition, the FM has increased the excise duty for large cars—both petrol and diesel—to 24 percent from the current 22 percent. The large cars with engine capacity above 1.5 litre will attract an additional three percent ad valorem rate, which is significantly higher than the previously fixed `15,000 additional excise duty on such vehicles. Altogether, the aftermath of Budget will trigger the inflation rate to soar further, which had otherwise shown moderation in the last two months. And it will certainly impact the sales of new vehicles. However, there will always be growth in the aftermarket due to its unique characteristics. Those who postpone their new vehicle purchase will try to maintain better by approaching organised service centers and using genuine spare parts. The success in the aftermarket, however, depends on the individual attention paid to the customers at the service points. Stay focused on customer service and the customers will stay with you during the life cycle of the vehicle. Wishing you much pleasure reading. Do send us your feedback.

T. Murrali t.murrali@infomedia18.in

APRIL 2012 AFTERMARKET

NEWS

CONTENTS NEWS

10 CarZ plans 300 by 2017 13 Liqui Moly propels towards industrial pool 14 Valeo joins Anand Group to enter aftermarket 17 Mobis to diversify exports 18 Dutch navigation service provider to show way 34

COVER STORY 24 The Great Indian Used Car Race Aftermarket turns the lens on the burgeoning demand for diesel cars and makes sense of the factors that spark the demand for used cars

IN CONVERSATION 34 Aftermarket speaks to VP, Sales, Marketing and Aftersales, General Motors India, Sumit Sawhney about the company’s attitude towards servicing INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

Service Channel Preference – By type of Service Vol. 1 No. 10 April 2012

68 Pages `50

NEWS

CarZ plans 300 by 2017

FACILITY VISIT TVS & Sons

Brought to you by

FOCUS 20 Why did TVS Group acquire Universal Components UK?

SPECIAL REPORT

INTERVIEW

Sumit Sawhney, GM India

Auto Monitor

Cover Design Mahesh Talkar

41 Aftersales service top priority for car buyers: Frost & Sullivan

APRIL 2012 AFTERMARKET

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APRIL 2012 AFTERMARKET

NEWS

CarZ plans 300 by 2017 Bhargav TS

MULTI-BRAND car servicing ﬆations seem to be growing, slowly but ﬆeadily. Today, only one-third of the cars that are sold by the dealerships go back to the dealerships, poﬆ-warranty. The reﬆ is an opportunity for the aftermarket services networks, which the multi-brand car servicing ﬆation chains are trying to tap and these companies are successful, based on their penetration levels. As part of its expansion programme the Hyderabad-based multi-brand car service ﬆation CarZ is planning to increase the number of outlets to 300 by the end of 2017. The company’s immediate plan is to open 26 new service outlets in South India in addition to few ﬆates including Maharashtra, Goa and Odisha by 2012-2013.

CarZ Bangalore Outlet

AFTERMARKET APRIL 2012

The company has partnered with a European company called Akzonobel, to outsource full body painting requirements for their cars. It has also tied up with a Germany-based chemical company BASF to outsource paint for full-body painting of branded cars Recently, the company also forayed into Bangalore by opening two ﬆate-

of-the art service outlets in Rajajinagar and Sarjapur road. The expansion into Karnataka is part of the company’s aggressive plans of ﬆ rengthen its footprints across the country and bring its unique value proposition to car owners through its service and solution oﬀerings. Commenting on their expansion plans, the Founder & Managing Director of CarZ, Venu Donepudi said, “We also have plans to spread across India by increasing the number of outlets to 300 by the end of 2017. Bangalore, for inﬆance, is an important growth market for us, with its huge IT population and high disposable income. At CarZ, our conﬆant endeavor is to provide end-to-end solutions to the dis-

NEWS

As part of its expansion programme, Carz has added another outlet to its network by foraying into Bangalore. The company recently opened two techequipped service outlets in Rajajinagar and Sarjapur road. Its expansion into Karnataka is part of the company’s aggressive plans to strengthen its footprints across the country cerning Indian car owner through our ﬆate-of-the-art workshops located across the country and our unique business verticals. Cuﬆomer centricity has always been the key to our delivery model and we promise the same unique experience to our cuﬆomers in Karnataka.” According to company sources, the service centre oﬀers express and mobile service to its cuﬆomers. It is equipped with the lateﬆ diagnoﬆic scanner, electrical and mechanical syﬆem, lifts, body and paint shops among other equipments. It provides numerous services ranging from maintenance to collision repair to car wash. The modern garage equipment used by CarZ has been imported from Japan, Korea and Germany. The Founder & CEO of CarZ, Vijay Gummadi, said, “We plan to create new benchmarks in cuﬆomer service and product oﬀerings in the automobile induﬆry. It’s our endeavour to provide complete auto care solutions to our cuﬆomers which include preventive maintenance, electrical and mechanical repair, accident repair—denting and painting, tyres and services, battery, variety of ﬆ yling and performance accessories, interior and exterior detailing.“

AFTERMARKET APRIL 2012

CarZ Service station

To ensure satisfaction and prompt delivery of the vehicle to cuﬆomers, CarZ has tied-up with several public and private insurance companies for processing cashless insurance claims as well as insurance renewals. CarZ also oﬀers express and mobile service to cuﬆomers for their convenience, where one can get their car picked up from their doorﬆeps at night and get it back (in case of minor maintenance repair) the next day before leaving home, at no extra coﬆ.

Painting Partner The company has partnered with a European company called Akzonobel, to outsource all full body painting requirements for their cars. It has also tied up with a Germany-based chemical company BASF to outsource paint for full-body painting of branded cars. Besides, it has associated with HPCL for supply of lubes and oils. CarZ also uses advanced software StockTrack for managing an inventory for 340 models of cars of diﬀerent brands and multiple variants. Though, there are hundreds of unorganised car care centres mushrooming across the country they lack the wherewithal to handle the technologically rich modern cars. Adequate training of the personnel, along with ﬆock-

ing of genuine auto parts and garage equipment are tad bit expensive and cumbersome process, which these small players can't aﬀord. Therefore, companies such as CarZ, Carnation, Mahindra Firﬆ Choice and other players have a win-win situation, as these companies are armed with a range of equipment and machines to cater to the service requirements of vehicles of different brands under one roof. As of December 2011, CarZ had eleven own outlets and one franchise in Nizamabad diﬆ rict of Andhra Pradesh. Currently, the company operates in four locations in Hyderabad. In the second phase, CarZ had launched these two outlets in Bangalore, thus entering the Karnataka market. Eventually, the company is planning a nationwide rollout of its outlets soon, sources said. To become a franchisee of CarZ, the company looks forward to having ﬆ rong ethics, appreciation for customer service values, the prowess to leading the team by conﬆ antly motivating them, a hunger for humungous growth. Besides, they should have adequate experience in retailing business and a proven management skill with sound ﬁ nancial credentials, the sources added.

NEWS

Liqui Moly propels towards industrial pool Our Bureau

THE motor oil and additive manufacturing company Liqui Moly (LM), together with its subsidiary company Meguin, is set to expand its industrial business. With this in mind, the two brands will be represented for the first time at the Hannover trade fair at the end of April. “This is the curse of success. In the automotive sector in Germany, we have acquired such a large market share that we can hardly grow any further there. So we are moving on to new pastures and will increasingly focus our attention on industrial customers. We want to allow our industrial customers to profit from our experience in the automotive sector”, says CEO, Liqui Moly, Ernst Prost. The industrial business is no new ground for Liqui Moly as the company along with its subsidiary provides lubricants, greases and special products to a host of industrial customers. Despite being one of Europe’s leading manufacturers of contact lubricants, the company is planning to expand its industrial business. The company group is presenting the form oil WT01 for the asphalt industry as a trade fair innovation. It ensures that the material doesn’t adhere to loading areas and asphalt chutes. The form oil is obtained from renewable raw materials and is biologically degradable. Its usage is not only economical; it is also especially environmentally-friendly. According to the company release, Liqui Moly and its subsidiary are the first providers of a product on this basis. Several innovations from the areas of lubricant greases,

LM Meguin Trennoel

corrosion protection oils and coolant lubricants will also be presented. The company will also present its ideas for the lube shuttle concept. The formulae for success are the same as those for the core business such as quality, extensive aftersales service and the ﬂexibility of a medium-sized company that can implement customer wishes in an uncomplicated fashion. The Liquily and Meguin group, which composed of the two companies based in Ulm and Saarlouis, oﬀers an assortment of about 4,000 products encompassing motor oils, additives, care products and chemical technology problem solvers for the automotive sector. The group develops and tests the products at its own laboratories and manufactures in Germany. In addition to the German market, the products are already sold

We are moving to new pastures and will increasingly focus our attention on industrial customers. We want to allow them to proﬁt from our experience in the automotive sector— Ernst Prost, CEO, LM in more than 100 countries across the world. The customers of the hightech assortment include wholesale and specialty traders, consumer markets, home-improvement markets, industry, automotive businesses and single brand automotive dealerships, as well as independent gas stations.

APRIL 2012 AFTERMARKET

NEWS

Valeo joins Anand Group to enter aftermarket Bhargav TS

IN a bid to target the fast-growing automotive independent aftermarket business in India, auto component manufacturer, Valeo has forged an alliance with Anand Group. The newly formed company—Valeo Service India Auto Parts Private Limited will be based out of Chennai and distribute automotive products manufactured by the two groups under Valeo. The JV agreement will enable both the companies to leverage the existing opportunities and to work closely in a complementary manner. Valeo started its Indian innings in the year 1997 and currently employees 2,000 members working out of ﬁve production sites in Chennai and Pune and a Research and Development Centre in Chennai. The Anand Group, India is among India’s leading manufacturers of automotive systems and components supplying a range of parts across vehicle categories. Speaking to Aftermarket, the Managing Director of Valeo Service India Auto Parts, S Balasubramanian said that the aftermarket division of Valeo already exists in many countries in Europe, the US, Japan and China. In India, the company has been present since 1997. In order to target the fast-growing automotive independent aftermarket business in India, Valeo Service has been launched. Valeo Service sees a huge aftermarket potential in India, which is growing at a rapid pace of 12 to 15 percent every year. “There is opportunity in maintenance, crash repair and heavy-duty servicing business. Valeo also recognises that India is a large market In order to provide eﬃcient logistics service, Valeo

AFTERMARKET APRIL 2012

Service will supply material through 12 warehouses across the country which could be further increased in future,” he said. The aftermarket company plans to sell its in-house manufactured products like cutch assemblies, starter and alternators, wiper blades, lighting and climate control products. “In addition,

Valeo recognises that India is a large country and to provide efﬁcient logistics service, Valeo Service will supply material through 12 warehouses across the country, which could be increased in the future—S Balasubramanian, MD, Valeo Service India Auto Parts Valeo Service plans to outsource and sell certain maintenance products, ride control products and engine components to oﬀer a bigger basket of products to its customers,” he said. To a question whether the company will look at importing products to cater to aftermarket, Balasubramanian said, “Yes, Valeo Service plans to import products from its plants in Asia. Also we plan to

A range of Valeo components

import parts for the premium segment cars from its most modern factories in Europe.” Globally, Valeo Service supplies original equipment spares to automakers and replacement parts to the independent aftermarket in cooperation with the business groups/product families. Its role is to offer to all aftermarket channels worldwide a wide range of products and services to help make repairs easier and to provide greater safety, comfort and pleasure to drivers and passengers. Besides, it also offers support and services that are constantly being enhanced and developed, in areas such as diagnostics, training, sales & marketing and technical support. Valeo Service offers 176 product ranges covering 12 product functions for light, commercial and industrial vehicles and trucks such as wiper systems (under the brand names Valeo, Marchal, PJ, and SWF), transmissions, lighting systems, climate control, engine cooling, electrical systems, electrical accessories, security systems, switches, braking and engine management.

NEWS

Volkmar Denner to take over as Bosch chairman DR VOLKMAR DENNER, has been appointed the new chairman of the Bosch board of management. He joined Robert Bosch GmbH in 1986, and has been a member of the board of management since 2006. Before he joined the board of management, Denner, who has a doctorate in physics, was president of the Automotive Electronics division from 2003. He was initially responsible for the automotive electronics, car multimedia, starter motors and generators, and electrical drives divisions. Since July, 2010, he has been responsible for the corporate sector research and advance engineering, for product planning and technology coordination, and for the “user experience” issue across all three business sectors. In addition, he is responsible for the automotive

electronics and car multimedia divisions. Effective July, 2012, Denner will also join Robert Bosch Industrietreuhand KG as a shareholder. For a number of years, Denner has focused on the issue of dynamic technological change and the opportunities arising for Bosch from services and solutions that are increasingly web-enabled. One example of this is vehicle interconnectivity. Professor Dr Ing Hermann Scholl is to resign from office effective 30 June, 2012. At the same time, he will retire from Robert Bosch Industrietreuhand KG. Franz Fehrenbach, who has been a member of the board of management since 1999 and its chairman since 2003, will step down from the board of management. Following a resolution of the shareholders of Robert Bosch

AMW, MyTVS join forces ASIA MOTORWORKS (AMW) has entered into an agreement with MyTVS to allow AMW customers to obtain service at MyTVS outlets across the country. The agreement covers all AMW haulage and tractor models operating on Indian roads. With this agreement, AMW gains access to MyTVS’ service network which includes 1,157 outlets across 763 locations. The types of services to be provided include minor repair jobs that would allow the vehicle to continue on its journey until it reaches an AMW authorised service outlet. MyTVS is part of the TVS Group

AFTERMARKET APRIL 2012

and offers multi-brand car services and emergency breakdown assistance for mechanical and electrical faults. It also offers ambulances, cabs, winch and towing services as well as and legal coordination assistance. AMW would also be using these MyTVS outlets to sell spare parts, which would add to customer convenience and enhance vehicle uptime. AMW has a network of around 113 dealerships and over 1,500 touch points across India. This network includes sales and service centres, authorised service outlets, mobile vans, workshops and a 24X7 helpline. The company offers trucks ranging from 16 to 49 tonne.

GmbH, he will join the supervisory council of Robert Bosch GmbH eﬀective July, 2012. The supervisory council has elected him its chairman as of July, 2012. At Robert Bosch Industrietreuhand KG, of which he has been a shareholder since 2003, Fehrenbach will in future be a general partner and take over the chair of the shareholders’ meeting. Dr Ing Dirk Hoheisel will join the Bosch board of management from July this year. A qualiﬁed electrical engineer, Hoheisel has been with Bosch since 1990, and has held various engineering positions. Hoheisel is currently Executive Vice President Engineering at chassis systems control in Abstatt, near Stuttgart. From 1 July, 2012, Hoheisel will be the board of management member responsible for automotive electronics and car multimedia.

Skoda conducts summer check-up SKODA AUTO INDIA has organised a month long comprehensive car checkup camp, starting April, 2012. As part of the camp, areas like the air-conditioner, engine, electrical systems, tyres, wheel rims and other such essential areas of the vehicle will be thoroughly examined. The company is aiming to cater to around 28,000 cars during this month long checkup camp. It had previously organised monsoon car care camps, pollution checkup camps and festival camps. Skoda Auto India has a network of around 100 outlets across the country and has sold over 138,341 units since December 2001.

NEWS

Mobis to diversify exports Mobis has completed a detailed analysis of the Indian market and established a business plan targeting the Indian market with safety systems, including airbags, automotive systems and audio, as strategic company products Our Bureau

SOUTH KOREAN auto parts major, Mobis is looking to diversify exports by ﬆ rengthening its presence in the emerging markets of China and India through a ‘Two-Track’ export ﬆ rategy, according to a company release. The company opened a local branch in India, which would be responsible for auto-part orders from local car manufact urers in and around New Delhi, India. The company, which has local branches in North America (Detroit), Europe (Germany), Japan (Tokyo) and China (Shanghai), has eﬆablished an exclusive global sales network in leading and emerging markets following the opening of a local branch in India. The local branch in India is a part of the company’s ﬆrategy to increase the company’s presence in emerging markets. The company plans to leverage this competitiveness to become the leading international ﬁrm through diversiﬁcation, securing cuﬆomers in emerging markets including China and India and accelerating auto-part

exports in leading markets. The company is a major supplier to international automakers including GM, Chrysler in North America, and BMW, Volkswagen, and Mercedes in Europe. The company plans to reinforce business activity in China and India to secure cuﬆomers in these emerging markets. It plans to gradually expand sales oﬃces in China to other regions by next year while carrying out business to obtain component orders primarily with the local Indian branch. It has completed a detailed analysis of the Indian market and its competitors and eﬆablished a business ﬆ rategy targeting the Indian market with safety syﬆems, including airbags, automotive syﬆems and audio as ﬆ rategic company products. The airbag market is expected to grow 37 percent annually in India, as the Indian government enforces tougher measures to inﬆall airbags in India’s ten major cities commencing this year. As local auto manufact urers demand high quality audio syﬆems, the market is expected to grow 19 percent annually. Vice President, Mobis International

Business Department, Lee Jun Hyung said “The company will develop these ﬆrategic products tailored to the Indian market in cooperation with a research inﬆitute in Hyderabad, India, while reinforcing price competitiveness through design improvement and on-site development of major components, and promoting aggressive business activities”. In addition to Hyundai Motors, Mobis is targeting Maruti Suzuki, Tata Motors and M&M, India’s three major companies accounting for more than 60 percent of the Indian market. The company has eﬆablished a branch office in Delhi for beﬆ access to these companies and beﬆ use of exiﬆing R&D personnel. Mobis has expanded exports to overseas car manufacturers to 10 percent of overall sales by increasing major autopart exports to leading car manufacturers in North America and Europe. The company now aspires to be one of the global top five leading companies in the car component induﬆry by expanding its share to 20 percent of the market by 2020 through a ﬆrategy of diversification across leading and emerging markets.

APRIL 2012 AFTERMARKET

NEWS

Dutch navigation service provider to show way in India Shambhavi Anand

Tom Tom has introduced WITH a strong belief in the growth potential of the Indian market, TomTom, a Netherlands-based in-car navigation solutions provider, is building a team of 400 employees in the country to localise its services and solutions in the region. The company is also planning to invest substantially in the country in order to have a grip on the market. The company, which is already a partner with major car companies such as BMW, Renault and GM is talking to other global companies about forming alliances in India. Founded in the early nineties, the company is listed on the Amsterdam Stock Exchange and earned total revenue of €1.27 billion in 2011. It has a presence in more than 100 countries. “Our goal for India is very clear. We, as a consumer product company and digital map maker, believe that the market has tremendous growth potential, and plan to invest to serve our customers better,” said

a Landmark Navigation feature for the Indian market through which, drivers can search for the nearest landmark to their destination General Manager and SrVP, India, Tom Tom, Jocelyn Vigreux to Aftermarket. The company entered the Indian market in September 2011 when it unveiled the Via Series of PND devices, catering speciﬁcally to Indian requirements. “The market is still very nascent but developing rather rapidly, going by the data we obtained for 2011. The PND market here last year was valued at approximately $80,000. We also detect that the awareness about such products is increasing amongst consumers,” Vigreux added.

Strategy

Via 125 degree Angle View

AFTERMARKET APRIL 2012

The investments that the company is envisaging are to primarily increase awareness and availability of its products in the local market. “First, it is important to build a robust channel to introduce our products and brand to the market. Second, we have to educate the market on the beneﬁts it oﬀers to the consumers. We believe that we are executing well on all of these aspects, as we have already created a pan-India

Jocelyn Vigreux, GM & SVP India , Tom Tom

distribution channel that is giving our company a true national reach,” Vigreux said. TomTom has recently partnered with Reliance Digital to sell its products through its 100 distribution channels across the country. The products will be sold through Reliance’s retail division for automobiles—Reliance Autozones, besides, independent car accessory dealers and car dealers. Realising the importance of localisation, every device of the Dutch company comes with comprehensive maps of India, with more detailed Points of Interest (POIs), and coverage of more than 5,000 cities and towns across the country. It is also working on making the interface user-friendly for the Indian consumer. TomTom has introduced three portable navigation devices from it’s Via series — Via 100, Via 120 and Via 125. It has also introduced Landmark Navigation feature for the Indian market through which, drivers can search for the nearest landmark to their destination. These devices also have a ‘Help Me’ feature in them that lists an emergency menu, providing them with local emergency service information.

FOCUS

Why did TVS Group acquire

Universal Components UK?

Richard Slee, CEO, TVS Supply Chain Solutions, Europe

R Dinesh, Jt MD, TVS & Sons

T Murrali

The parts aftermarket in Europe for LCVs and HCVs in 2010 was $33 billion, while it was `4,500 crore in India and set to double by 2015

AFTERMARKET APRIL 2012

MADURAI headquartered TVS Group has recently acquired Universal Components UK Limited, Britain’s leading independent wholesale distributor of commercial vehicles’ parts and accessories. TVS Group had already made acquisitions in UK through TVS Logistics Services Limited in 2009 to acquire the capability in the logistics business. Post that deal, the distribution and services business had been looking at possible acquisitions to increase its relevance to its stakeholders (suppliers) and also acquire new capabilities. As part of this intent, the group created a special purpose vehicle in the UK—TVS Europe Distribution Limited, which has purchased 90 percent of Universal Components’ stake. The total investment towards this deal is `100 crore including

its proposed spending expansion plans.

its

The Rationale Well, what is the reason for TVS to go ahead with the acquisition? Is it because the company is keen in inorganic growth to enhance volumes or is it due to its intent to expand globally? It is much more beyond all these reasons, said Joint Managing Director, TVS & Sons, R Dinesh. Established in 1911,TVS Group is one of the leading business conglomerates in the country with interests in automobile dealerships, distribution of spares for aftermarket, sales and service support for garage equipment, products for oﬀhighway applications like construction and material handling. TVS & Sons, which is the holding company of the group, is one of the largest distributor

FOCUS

of automobile spare parts in India, handling more than 35,000 part numbers from 80-odd suppliers and catering to the requirements of about 8,100 customers, besides, marketing in-house branded products.

Discerning Distributors Dinesh is of the view that the structure of the Indian automotive aftermarket indicates a strong role for independent distributors, which is similar to Europe and the UK. Elaborating the synergies, he said that original equipment suppliers contribute 39 percent of parts manufacturers, 34 percent is by OEMs and the rest is by generic parts manufacturers. However, OEMs cater only to OEM sales units and part dealers while the generic manufacturers support independent part dealers. The one segment that caters to both distributors is the original equipment suppliers, he said, referring to a study conducted by ACMA—McKinsey. While 45 percent of their lot goes to OEM sales units and part dealers, the rest goes to independent part dealers. The retail segment is only catered to through independent part dealers. The OEM sales units and part dealers refrain from retailers that are largely unorganised, and directly

support the needs of owned / franchised dealers and multi-brand dealers, which according to the study, account for 46 and four percent respectively of authorised sales and service centres. Original equipment suppliers and generic manufacturers support the remaining 50 percent of the market that comprises small garages and gas stations. The study states that distributor/wholesaler is indispensable in the network providing market access to OEMs, original equipment suppliers and third-party suppliers. In addition, it is also vital in fulﬁlling supply chain, source of credit to customers and the ability to source a wider product range than any supplier.

Similarities, Synergies

David Kernahan, MD, Universal Components

Dinesh said that the European aftermarket, baring minor variations, has a similar structure. It is this synergy that made TVS group to acquire Universal Components, he said. The acquisition will help TVS enhance its presence in the commercial and light commercial vehicles spare parts range in other Asian markets (except India) as well as help acquire best practices in dealing with its customers (small retailers). It will also further improve its forecast and planning

The TVS group has purchased 90 percent of Universal Components’ stake. The total investment towards this deal is `100 crore including its proposed spending on its expansion plans capabilities and deploy state-of-the-art IT systems in India and other countries including Sri Lanka and Bangladesh where the distribution of spare parts is currently undertaken. The parts aftermarket in Europe for LCVs and HCVs in 2010 was $33 billion while it was `4,500 crore in India and set to double by 2015. The positive contributors to the growth include entry of global truck manufacturers in HCV segment, increasing range and variety in the growing LCV segment and the independent aftermarket distributors that occupy about 50 percent of space despite being fragmented and sub-scale. “This acquisition will give increased scale and size to strengthen our relationship further with global suppliers, which will

APRIL 2012 AFTERMARKET

FOCUS

The European automotive aftermarket has a similar structure EUROPE

2010 Manufacturer3

Distributor2 OEM branded

OEMs (50%)

Service provider1 OEM affiliated ASSPs (55%)

OEM sales units and part dealers (50%) Mainly OEM or OES branded

Generic manufacturers (7%)

Generic

SOURCE: ZDK; DAT Report; GVA (BBE); Bundesverband

Mainly OES branded i or gener ic

CommerC cial

a strong role for independent distributors, which is

Fleet

similar to Europe and the UK

Small garages/ garages/ gas stations/ DIY (12%)

Individual

Tuning VDAT; GDV; Datamonitor; Global Insight;

beneﬁt both Universal Components and TVS. We will utilise Universal Components’ marketing expertise and best practices in our businesses in India and other Asian markets. It would also help us to have wider range coverage of parts to distribute in the aftermarket,” Dinesh said.

Modern Marketing Though the company has been in the parts distribution for over five decades, what was missing is the marketing using the web or adopting different methods to reach the customers. Secondly, in terms of the range coverage, it had its limitations based on the suppliers. Thirdly, TVS currently honours 75 percent of the orders placed within 24 hours while Universal Components is at 95 percent. This is due to the superior forecasting ability, which will be a key learning, he said. Management bandwidth will increase eventually benefiting TVS while entering new markets beyond boundaries. It will help address the market in the shortest possible time, he said. In the domestic market, despite being a seasoned player in parts distribution, the range availability across different segments, especially for

AFTERMARKET APRIL 2012

Indian automotive aftermarket indicates

Automobile clubs l b Leasing

The structure of the

Independent ASSPs S ystem t chains h i (33%)

Independent part distributors (50%)

Insurances

Multibrand dealers

Customers

OEM

Owned and franchised dealers dealers

OES branded

OESs (43%)

Intermediaries

global brands is less. The acquisition will help address these issues, he said. TVS has a vision to be a focused aftermarket distributor in Asia having global scale and strong brand marketing capabilities. With Universal Components, it saw the relevance to accomplish its objective in terms of scale, range and marketing of the brand. Leveraging the inherent potential, the group is looking at acquiring few key capabilities such as integrating companies, global sourcing of parts especially from low cost countries, fulﬁlling orders through eﬃcient supply chain and understanding international market dynamics.

Europe Expansion Universal Components, headquartered in Sheﬃeld, has 420 customers in the UK being serviced through 650 distribution outlets. It sells parts worth approximately `200 crore and employs around 100 people selling both manufacturerbranded parts and its own range of inhouse branded parts. It currently has more than 12,000 part numbers and plans to double this number in the next three to ﬁve years. Yet another synergy TVS saw in

the deal is the opportunity to tweak the supply chain of acquired company through its existing operations. The CEO of TVS Europe, Richard Slee said, “With Multipart (now renamed as TVS Supply Chain Solutions), we will be able to provide signiﬁcant beneﬁts to Universal Components on the supply chain and backend logistics.” Besides, it will also help the company to become the market leader and grow its relationship with its customers.

Symbiosis According to Managing Director, Universal Components, David Kernahan, the business deal will support the company in its growth plans and become a larger player in the international and domestic CV sector. TVS can support the company in furthering the range of its supplier relationships and also bring in low cost country sourcing. TVS compliments the sourcing eﬀorts of Universal Components not only in trailer range but also in the CV range, which is one of the growth drivers identiﬁed by Universal Components in UK and other parts of Europe. Universal Components is the second acquisition by TVS group in the UK after its successful buyout of Multipart Holdings in 2009. With these two acquisitions, TVS group hopes to register a turnover `1,000 crore in UK. It is also planning to employ nearly 500 people.

SPECIAL REPORT

Motorexchange to provide value added services Abhishek Parekh

MOTOREXCHANGE is looking to enhance its technology platform and notch up a turnover of around $one billion over the next two to three years. “We are looking to make this the most robust and sought after used car auction platform in India. The value addition and connectivity is the diﬀerentiation that this platform from any similar endeavours,” said Founder and CEO, Motorexchange, Vinay Sanghi. Currently, more than a million customers visit the consumer site cartrade. Vinay Sanghi, CEO, Motorexchange

Features like inventory sharing by dealers on regular basis are helping to enhance the transparency in the market and better price discovery for the used car pool— Vinay Sanghi, CEO, Motorexchange com and around 1,200 automobile dealers are registered users on the B2B platform cartradeexchange, which is the online auction marketplace for cars that connect institutions like banks, ﬁnance companies, insurance companies and auto dealers to trade used and repossessed cars. Value added services including price guides on used cars, inventory information and listing by dealers, registration information and dealer management system are integrated with

cartradeexchange platform to help faster decision making process. To strengthen the appeal of the platform, the entire inventory of used cars is visible on the B2B and consumer websites. The consumer website is largely geared to generate leads on individual buyers with transaction on used car buying and selling done offline. “Features like inventory sharing by dealers on regular basis are helping to enhance the transparency in the market and better price discovery for the used car pool,” said Sanghi. He added that in addition to enrolment of larger number of dealers on the platform, the company is also looking to enhance the scalability of auction and lead generation business. MotorExchange was launched towards the end of 2009 as an online platform for transacting used vehicles. The site enables business (financial institutions and fleet owners) and consumers to sell their preowned vehicles. It claims to offer an

eﬃcient price discovery mechanism to sellers in addition to deﬁned timelines and transparency. Buyers on the platform

Currently, around 1,200 automobile dealers use the platform, which is the online auction marketplace for cars that connect institutions like banks, ﬁnance, insurance companies & auto dealers to trade used cars are used vehicle dealers who gain access to a large pool of vehicles. It also focuses on repossessed vehicles from commercial banks (that come from loans defaulters). The B2B platform charges buyers a commission fee and provides the services to sellers for free.

APRIL 2012 AFTERMARKET

COVER STORY

The fuel price differential between petrol and diesel is distorting the used car market across geographies. However, experts feel that the burgeoning demand for diesel powered cars may be a transitory phenomenon. Aftermarket turns the lens on the market winds, to make sense of the factors that spark the demand for used cars.

AFTERMARKET APRIL 2012

COVER STORY

SPEAK to any used car dealer these days and one may be perplexed at the discounts offered on the petrol powered cars. Though it is not an unprecedented situation, the scenario is unusual given its wider impact across geographies and segments in a market that are characterised by segmentation and local taste. Market players are of the opinion that the fuel price differential scenario in the new car market and tighter financing norms are playing their part in keeping demand under check. Aftermarket conducted an extensive survey on the ground to assess the situation. “The demand for diesel cars is ruling steady but the demand for petrol powered cars has come down significantly. The rush for new and used diesel cars is helping keep the prices steady whereas prices of petrol cars in the used car market have fallen significantly over the past one years so,” said Founder and Chief Operating Officer, Motorexchange, Vinay Sanghi. Currently, there are more than a million hits on the consumer site cartrade.com, and around 1,200 automobile dealers are registered users on the B2B platform cartrade, which is the online auction marketplace for cars

Anil Bagaria, KB Motors, a Tata Motors Assured Dealer

that connects institutions like banks, ﬁnance companies, insurance companies and auto dealers to trade used and repossessed cars. Value added services including price guides on used cars, inventory information and listing by dealers, registration information and dealer management system are integrated with cartradeexchange platform to help hasten decision making processes. To

broaden the appeal of the platform, the entire inventory of used cars is visible on the B2B and consumer websites. The consumer website is largely geared to generate leads on individual buyers with transaction on used car buying and selling done offline. MotorExchange was launched towards the end of 2009 as an online platform for transacting used vehicles. The platform site enables business (financial institutions and fleet owners) and consumers to sell their pre-owned vehicles. It claims to offer an efficient price discovery mechanism to sellers in addition to defined timelines and transparency. Buyers on the platform are connected to used vehicle dealers who gain access to a large pool of vehicles. It also focuses on repossessed vehicles from commercial banks (that come from loans defaulters).

Petrol Woes Value added services including price guides on used cars, inventory information and listing by dealers etc are integrated with website platforms to help hasten decision making processes

The falling demand for petrol cars is also leading to an earlier arrival of the latest models in the pre-owned segment. According to the sales executive of a pre-

APRIL 2012 AFTERMARKET

COVER STORY

In the last one year, the demand for used cars has grown around 1.5 times compared to that for new ones. This means there is demand, but affordability is an issue. There is a gap of at least `50,000 between what sellers want and what the buyers are willing to pay

owned dealer, even petrol cars that were recently launched, such as Toyota Etios & Liva, Volkswagen Polo & Vento and Ford Figo, have found their way into the second-hand market. A resident of Ambattur in Chennai who runs a small business, Sampath Kumar, wants to sell his petrol car— Maruti SX4 and buy the diesel version. He said, “My monthly fuel bill, which is running up to `15,000, is pinching me hard.” An automobile ‘consultant’ based in Chennai, Mohan Rajabather said, “In the last one year, the demand for used cars has grown around 1.5 times compared to that for new ones. This means there is demand, but aﬀordability is an issue.” He further elaborated that the expectations of those selling diesel cars are running high. There is a gap of at least `50,000 between what sellers want and what the buyers are willing to pay. Mohan also said, “Till August 2011, the ratio of petrol and diesel cars used to be 45:55 in Chennai. It is now 25:75 and this shows the demand in diesel cars.” In Bangalore, which is considered one

AFTERMARKET APRIL 2012

of the biggest used and new car markets in the country, the diesel cars sales have increased by 25 percent, as per some dealer estimates. A manager at a leading pre-owned car showroom in Bangalore says that the inventory holding period for petrol models has gone up from around 10-15 days last year to anywhere

around 35-40 days currently. Meanwhile, the growing demand for diesel cars has led to supply constraints, leading to an increase in their prices by eight to ten percent.

Car Financing “Easy availability of loans for preowned cars is the reason that this segment is growing at a fast clip. Not only the loans but also insurance is available and easy to get. The down payment and

COVER STORY

the loan instalments have been aligned to the needs of the buyers,” pointed out Mohan. Customers feel that the there are a lot of benefits in buying second hand or pre-owned cars. The value of a used car is lower than that of a new car of the same make due to depreciation. As the value of a new car is higher compared to a used car of the same make, the depreciation is also higher in the initial years of the purchase. For a pre-owned car, the depreciation cost is lesser as compared to the new car and used cars can be modified according to the owner’s preference. With an increasing number of financial institutions coming in, the segment has got a boost. Most banks such as Kotak Mahindra, HDFC Bank are pursuing used cars with aggressive strategies. Currently, around 25 percent of used cars that are sold are financed. The used car market is already larger than the new car market in terms of volume and is set to grow further as overall vehicle population or ‘car parc’ increases. According to some estimates, the

used cars segment has grown faster than the new car segment over the last fiscal. A domain of service stations till very recently, pre-owned cars have now become lucrative enough to attract new car dealers as well. As per the estimates of a leading car financier, the used cars industry is expanding at 25-30 percent against around 13 percent or so growth in the new car sector. The Indian buyer has shed his/ her emotional inhibition of buying a second hand car in favour of practicality and economic consideration. Wider presence of used cars brands certified by manufacturers including Maruti True Value, Hyundai Advantage, Tata Motors Assured provides comfort to the customers opting for used cars. OEMs have been increasingly focussing on widening their presence in the used car business by enrolling more pre-owned car dealers, providing assistance on valuation and refurbishments, regular exchange programmes for buyers looking to upgrade their existing cars and other value added services to the existing owners. Free service

warranties are also provided on purchase of used cars from OEM certified used vehicle brands. Despite significant and growing involvement of OEMs in the used car market, unorganised players continue to have a major presence accounting for 5060 percent of the total volumes in all Tier I cities across the country. Established players like Mahindra First Choice Wheels Ltd (formerly Automart India) which has around 180 outlets, is focussing on increasing its dealership network further and looking to compete with dealers of new cars. “It is imperative for customers to realise the benefit of opting for a used car. For the price of a new hatchback, a potential customer could get a pre-owned premium sedan without compromising on warranties and quality that comes with a new car,” said Vice President–Operations & Network, Mahindra First Choice Wheels, Yatin Chadha. He added that one of the biggest challenges for any used car dealer is establishing his/her credibility and ‘differentiation’ factor in a competitive market. He considers ‘stable’ demand or growing preference for diesel cars to be a transitory phenomenon due to fuel price differential and other factors. Older diesel cars also require more maintenance compared to similar aged petrol cars and

A domain of service stations till very recently, pre-owned cars have now become lucrative enough to attract new car dealers as well. As per the estimates, the used cars industry is expanding at 25-30 percent against around 13 percent growth in the new car sector

APRIL 2012 AFTERMARKET

COVER STORY

Since the disparity between diesel and petrol price has widened, there is a signiﬁcant rise in the demand of diesel cars. However, petrol cars are still preferred in the below `two lakh price range,” said Anil Bagaria, KB Motors, a Tata Motors Assured dealer hence the price diﬀerential may not grow beyond a point.

Fuel Prices Due to the successive increase in petrol prices over the last 12 to 16 months, the sales of petrol powered cars has gone down not only in the new car segment but also the used car market. Maruti True Value and Mahindra First Choice Wheels dealers point out that the inventory of petrol cars has doubled even as demand has been dropping in the past six months. Around 40 percent of the enquiries are for diesel vehicles but the availability is falling short of the demand leading to a premium for diesel cars in the pre-owned market, according to a dealer in Mumbai. He added that in certain pockets or geographical areas there could be a major demand-supply imbalance. Moreover, the demand for cars fitted with CNG/LPG retrofitment is less in used car segment. Customers prefer to buy petrol version and then get a CNG/LPG kit fitted themselves, according to dealers. “In a used car business, the main profit lies in how much we procure a car for. Since there is lesser demand for petrol cars in used car market, we cannot offer prices that we would have otherwise offered had there been no major price differential between petrol and diesel. This could also

AFTERMARKET APRIL 2012

be leading to lesser number of vehicles coming for sale in the used car market,” said a Maruti True Value dealer in Mumbai, N Venkatramani. The benefit of customers opting to buy cars from a manufacturer certified used car brand is that the available cars are refurbished with financing and warranties thrown-in, while this may not be the case with cars purchased from the unorganised segment. Several bottlenecks to functioning of the market exists. It is difficult to source cars to resell in the used car market. Additionally, trained evaluators are hard to find for most dealers. “A dealer has to be careful about the kind of car to be sourced. The ownership ‘history’ of the car is very important and so are the documents and that is why it takes some time and we have to hire good people for that. We have some yardsticks based on our experience,” said a used car dealer from Bangalore. “A major issue is sourcing of preowned cars. Not only is it difficult to source cars with ‘clean’ history, but the process of sourcing is also dependent on market vagaries like

price revision of the new car, model discontinuation and other factors,” said Motorexchange’s Sanghi. “Since the disparity between diesel and petrol price has widened, there is a significant rise in the demand of diesel cars. However, the petrol cars are still preferred in the below `two lakh price range,” said KB Motors, a Tata Motors Assured dealer, Anil Bagaria based in Kolkatta. He added that there is a difference of around four to five percent in the rate of interest when compared with new cars. The loan for new cars is available at the interest rate of 12 percent, while this goes up to 17-18 percent in case of used cars. “Around eight months ago, we use to sell 70 percent petrol vehicle and 30 percent diesel but now there has been a shift in favour of diesel vehicles and the current ratio of diesel and petrol cars is 50: 50,” according to the CEO, Topsel Toyota, Deepak Gupta. Topsel is an affiliate of Toyota’s pre-owned brand U-Trust. Though it may be a while before used car dealers compete with new car dealers on relatively equal footing, their growing prominence is noteworthy.

FACILITY VISIT

TVS & Sons: Adapting to changing dynamics

(L) Lubricants stored at the warehouse(R) An inside view of the facility

The Madurai headquartered TV Sundram Iyengar & Sons Limited, is one of the largest automobile spare parts distributors in India. It sells over 35,000 part numbers, manufactured by close to 100 suppliers and caters to over 7,000 customers across the country. The company has state-of-the-art central warehousing facilities with IT infrastructure ensuring smooth procurement and deliveries. It is now gearing up to prepare itself to address the changing market dynamics by introducing new concepts, leveraging its inherent capabilities and next generation technologies. T Murrali

WITH the vehicle parc increasing, the demand for aftersales service is set to rapidly grow triggering the increasing requirements of spare parts not only in diﬀerent varieties and volumes but also at diﬀerent parts of the country. The diﬆ ribution and reach are going to be critical and making parts available to cuﬆomers when they want, is crucial. TVS & Sons is looking at expanding its network, creating more space at its central warehouses and also adding a new warehouse to its spread. It is also looking at introducing barcoding parts for speedier operations and hand-held devices to enhance overall product ivity of its sales force. Vice President,TVS & Sons

(DSBU), KR Sridhar said that with the OEMs launching more models and variants the need to maintain a wide range of parts has become quintessential, though a diﬃcult proposition. It is hard to maintain ﬆocks of all the parts all the time and therefore it is necessary to work with suppliers to disperse the responsibility of maintaining the ﬆocks while ensuring supply of parts to customers within 24 hours.

Challenges To achieve better results, the supply chain eﬃciency muﬆ improve. “One muﬆ be able to look a little ahead and create those alignments and alliances and work better. For example, if we are plan-

ning to work with some manufacturers, it is necessary to ﬆart thinking in terms of aligning our planning syﬆem with that of the manufacturers,” he said. The competition from overseas is set to increase, especially in parts for passenger cars.

Tech-Up Currently, the company handles around 50,000 part numbers. However, on an average, it is managing around 20,000 SKUs (Stock Keeping Units). In order to optimise the eﬃciency the company is looking at introducing barcoding syﬆem due to sheer quantity of parts being handled. Secondly, it is ﬆ udying possibilities of aligning the supply chain in the

APRIL 2012 AFTERMARKET

FACILITY VISIT

Reorganisation

KR Sridhar, VP, TVS & Sons

entire form. It is also looking at providing handheld devices for the sales force, which is connected to the warehouse or branch. The company already has an ERP syﬆem with which, the sales force get to know about the ﬆock position etc at a click of the mouse. However, the impediment, it feels, is the time taken for the sales person to reach his office and log on to find out these parameters before placing the order. According to Sridhar, the handheld device will help the sales personnel to find the ﬆock position across the country and assure the cuﬆomer of the lateﬆ availability. Besides, it will help him to spend more time in the field and generate better business.

Evolution It all began when TVS & Sons foresaw the demand for spare parts soaring in the early ’60s due to increase in vehicle population and set-up workshops to service the vehicles. And every workshop had its own spare parts counter. In addition to captive consumption, these workshops had a retail counter too. Wherever TVS & Sons opened dealerships, the spare parts counter followed along with the service centre. As the requirement of parts began to snowball, the company felt the need to have a central control to diﬆ ribute parts to the workshops.

AFTERMARKET APRIL 2012

During early ’90s, TVS & Sons reorganised its business by making every operation as a Strategic Business Unit (SBU). For inﬆance, the business that is dealing with sales and service of Ashok Leyland has become a separate SBU. In the process the ‘parts diﬆ ribution’ has become a separate SBU. Today, it is called Diﬆ ribution SBU or DSBU. And in the evolution of things it brought in a new concept—a central warehouse based in Madurai. The company has branches in nine locations in Tamil Nadu with each

TVS & Sons is looking at adding a new warehouse to its spread. It is aims to introduce bar-coding parts for speedier operations & hand-held devices to enhance the productivity of its sales force branch having several departments including sales, spare parts, back oﬃce etc. Once the DSBU is formed, the company brought in all the ﬆocks to the central warehouse in large scale in Madurai. Though major reorganisation was required, it helped in managing the inventory and supply chain better while catering to the cuﬆomers promptly at the same time. Currently, it has its central warehouses in Tamil Nadu (Madurai) and Kerala (Kochi) with about 50,000 sq ft of space each. It ﬆ ill follows the older ‘branch’ concept in Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Uttarakhand and Rajaﬆ han.

Ef ciency tweaked With the central warehouse syﬆem, it is convenient for the company to have overnight delivery syﬆem. The goods

from the vendors ﬆart flowing in to the warehouse during the day while the despatch commences from the evening. During the day, the sales representatives meet the cuﬆomers and procure orders that are catered to the next day. All orders that are placed and entered until 3 pm everyday is executed and the goods despatched before end of the day. The warehouses have dedicated bays for the scheduled final deﬆ inations such as Salem, Coimbatore, Tirunelveli and the ﬆocks piling up during the course of the day. The trucks ﬆarts coming from about six pm in the evening and after loading the goods they take a scheduled route covering many towns on the way to deliver goods. For some deﬆ inations, the company has scheduled two or three different routes in order to periodically cover more places between major cities.

Cyclical System The entire syﬆem typically operates like a poﬆ oﬃce. The company delivers goods twice a day in Madurai due to sheer volume of requirements, while to other major cities it does on a daily basis. It has dedicated logiﬆ ics service provider to handle the transportation of goods and it has a dedicated ERP system to handle the overall operations. TVS & Sons deals with all types of parts for almoﬆ all kinds of vehicles.

FACILITY VISIT

Depending up the season it also handles spare parts for tractors, marine and rigging applications. According to Sridhar, the company has two major kinds of cuﬆomers—the retailers, which accounts for about 80 percent of the business and ﬂeet operators contributing to about 15 percent. The reﬆ is inﬆ itutional sales.

Stock Planning With the choice of vehicle user increasing the OEMs are churning out many models and the need to maintain adequate spares is key considering the space it occupies and the proﬁtability. Stock Keeping Units (SKUs) is a major challenge for those involved in spare parts business and retail as the requirements are highly ﬂuct uating. TVS & Sons’ ERP syﬆem takes the hiﬆorical sales data for the laﬆ six months and those that the company could not execute due to non-availability of parts. Besides, it also takes the average sales, lead-time taken by the vendors to supply the parts, which is depending upon the season-related to a range of products. These parameters are compiled againﬆ the ﬆock in hand and back order lying with the manufact urers. The reorder level is set based on these parameters, Sridhar said. Th is

exercise is done typically on two ways— for a ﬁ xed period and ﬁ xed quantity. Therefore the SKUs are maintained based on these methodologies depending upon the sales characteriﬆ ics of the products. If the parameter of one of the indicators goes below the ﬆipulated level, then the syﬆem triggers MOQ— minimum order quantity. The company sources from about 100 vendors across the country.

Central Warehousing As the company has garnered expertise in its central warehouse concept, it is mulling options to replicate the model in others ﬆ ates where it has operations now. “We are getting towards this model in some ﬆ ates,” he ﬆ ated. The company has three branches in Madhya Pradesh (Bhopal, Indore and Jabalpur) and two (Jaipur and Jodhpur) in Rajaﬆ han. The third one is in the offi ng. The company will look at those ﬆ ates that have potential to have five branches, for putting up a central ware house. It also depends upon the size of the ﬆ ate as the warehouse needs to supply parts overnight. “I think with five branches with a fairly well centrally located warehouse will work,” he said. Currently, it is present in Kanpur and Waranasi

With the central warehouse system, it is convenient for the company to have overnight delivery system. The goods from the vendors start flowing in to the warehouse during the day while the despatch commences from the evening

in Uttar Pradesh and in Haldwani in Uttarkhand, Raipur in Chattisgarh. The company is looking at entering Bihar and Jharkhand as, “we are getting the right vibes from the market and people,” he said.

Future Plans According to him, a growth rate of eight to 10 percent is considered normal in parts business earlier. This is not true anymore, as the business has begun growing at more than 15 percent. Growth in spare parts for two-wheelers leads the pack followed by passenger cars and commercial vehicles. However, in the case of diﬆ ribution it will be two-wheelers followed by commercial vehicles and passenger cars as the spare parts for passenger cars are ﬆ ill largely with the OEMs. Moreover, the competition from overseas is set to increase, especially in parts for passenger cars. The option is either to ﬁght that by putting barricade or act proact ively by making better supplies. In order to address the emerging challenges, TVS & Sons is looking at expanding its central warehouse in Madurai. It is mulling with two options —either to expand the current one or to set up another warehouse as Sridhar feels that the intensity of diﬆ ribution is good. “I see this happening in the near future, if not immediately,” he said. Eﬆ ablished in 1911, TVS & Sons is currently the holding company of TVS Group, which has a diversiﬁed presence in the automobiles. The company has JV operating in Sril Lanka called TVS Auto Parts (TVS AP). The company, which is 65:35 joint venture between TVS Lanka and World Wide Trading, Sri Lanka, is in the business of diﬆ ribution of spare parts for Indian made vehicles across the island. Over a period of time, it has eﬆ ablished a wide network of 150 dealers across the island.

APRIL 2012 AFTERMARKET

FACILITY VISIT

Brand-finance-service mix ensures success

Sreelaxmi Motors facility

Shambhavi Anand

IT all ﬆarted with the business of providing finance to commercial vehicles. Manish Jain and his maternal uncle, Lalit Choudhry, perceived an opportunity in the business of selling commercial vehicles. The duo was looking for ways of leveraging the opportunities. Their initial venture took off in 2001, when they ﬆarted selling used vehicles (moﬆ ly commercial vehicles). “Ten years ago, the market for second-hand commercial vehicles in and around Surat was huge. Being in the business of financing, we got numerous enquiries about used vehicles. So we took the plunge,” Director Sreelaxmi Motors, Surat Manish Tiwari said.

AFTERMARKET APRIL 2012

There are three things that make a dealership successful: first, a well known brand & second, financing facilities. Earlier, we had only our financing services, but today, major banks have relations with us. Finally, third, is service centres. A good mix of three, paves the way to success— Manish Jain, Founder

Jain purchased vehicles from across the ﬆate of Gujarat, refurbished and then sold them. They also provided finance for the used vehicles from their own finance company. In 2007, when Jain firﬆ applied for the dealership of Atul Auto, his application was rejected. However, Jain did not give up and determination proved to be Jain’s ﬆrength; he kept trying until he succeeded. Finally, on 2 November, 2009 saw the inauguration of his firﬆ showroom in Surat. The showroom, which ﬆarted after much effort, sold 40 vehicles in the firﬆ month, and has not looked back since. An additional advantage for those who came to Jain was easy availability of

FACILITY VISIT

finance from his own finance company. Today, Sreelaxmi Motors has 12 outlets across Surat. The idea behind opening a chain of outlets across the city was to expand its reach to the cuﬆomers. “We wanted to go to our cuﬆomers rather than making them come to us,” Jain pointed out. Out of the total 12 sales offices in Surat, one has a showroom and five service centres. Jain’s expansion plans do not end there. He intends to open more outlets. Two such outlets are in pipeline in Baruch and Navsari. Five of the outlets of Sreelaxmi Motors also have service centres; service being a vital element especially when it comes to commercial vehicles. On these vehicles depends the earnings of a person and so it is very important that cuﬆomers do not have to face hiccups while getting them repaired —Commercial vehicles are a source of income for their owners. And so it is necessary that the service centres are prompt in doing repair work.. The reﬆ of the outlets cater moﬆ ly to the sales division of the dealership. While talking about his cuﬆomer profi le, Jain explained, “This segment is extremely different. The level of education is not very high. And so the way one deals with them is also very different,” he added. One has to have an underﬆanding of their lifeﬆ yle, problems and mindset to ﬆ rike a rapport. To underﬆand the cuﬆomer and his

lifeﬆ yle, the sales executives have to be proact ive and take personal intereﬆ in each cuﬆomer. Conversation and small talk about family, daily routine, even sharing of anecdotes can help in gaining an insight into a cuﬆomers’ life. His ﬁnancing business has always given him an edge, which Jain, keeps in mind while recruiting ﬆaﬀ members also. Education level for him is not a criterion. What matters is the skill to ﬆ rike a chord with the seg-

In 2007, when Jain first applied for the Atul Auto dealership, his application was rejected. However, he kept trying until he succeeded. Two years later, he inaugurated his first showroom in Surat ment that he deals with. He has a total of 135 ﬆaff members in all his outlets. Around 25 employees are engaged in sales and up to 70 in service centres. The reﬆ facilitate financing, insurance and other paperwork. Monthly meetings are a regular at the dealership. “We learn through

Atul Auto vehicles linedup Inside the facility

sharing our learnings. There are no ﬆ ruct ured training modules. However, we share our ideas, talk to each other and try to hone our skills at these meetings to become better. We discuss each one’s experiences, share anecdotes, talk about the cuﬆomers and the deals they have closed recently. The seniors guide the juniors and tell them how to go about convincing clients. We work like a family,” Jain revealed. Challenges were many, but looking beyond the obﬆ acles, the team kept on marching like a family. Today they sell upto 200 vehicles each month. Sharing his secret of success, the founder of the dealership said, “There are three things that make a dealership successful: fi rﬆ , a well known brand and second, fi nancing facilities. Earlier we had only our fi nancing services, but today, major banks have relations with us. Finally, third is service centres. A good mix of three, paves the way to success.”

Five of the outlets of Sreelaxmi Motors also have service centres; service being a vital element especially when it comes to commercial vehicles

APRIL 2012 AFTERMARKET

IN CONVERSATION

“Every customer complaint is taken up at the management level”

AFTERMARKET APRIL 2012

IN CONVERSATION

Good aftersales support is the key to customer retention. In order to attain new customers and retain the old ones, it is imperative for a vehicle manufacturer to build a strong service network as this is one of the most important factors that customers consider while purchasing a vehicle. Shambhavi Anand speaks to Vice-President, Sales, Marketing and Aftersales, General Motors India, Sumit Sawhney about the company’s service network. What kind of role does the dealership network and aftersales support services play in the GM’s growth story in the country? Like for every manufacturer, distribution network and aftersales support is very important for us. We are now one of the fastest growing automotive nameplates in India and provide consumers with fuel-eﬃcient, safe and reliable vehicles that deliver high quality, expressive design, spirited performance and value. We want to have an impeccable service support for our customers to back all this up. What kind of distribution network and service network do you currently have? At our distribution network and the aftersales support network we have been working pretty hard and we have grown our network three times. We have more than 280 outlets currently. And by the end of this year we will have more than 310 outlets across the nation. We will keep expanding in future also. That’s the service network we are providing to our customers. Which are the cities you focus on? We have presence in all the major towns and cities across the country in all the regions. And when I say major towns and cities, we are present even in Tier IV cities. We are moving to much smaller locations to ensure that our customers in these areas get after sales service in the vicinity of around 100-200 km. As a manufacturer, how do you ensure that good service is provided to your customers? Chevrolet has won three top awards

Sumit Sawhney at New Tavera launch

in the India Automotive Initial Quality Study (IQS) and Vehicle Dependability Study (VDS) 2010 announced by JD Power and Associates. We have improved our position from seventh to third in the ranking for good service support. We work very hard with our dealer partners and other authorised service stations to give to our customers the best possible service. Even at the management level, we are concerned about what the consumer is getting. We believe in responding back to our consumers as fast as possible. I think the hard work our dealers and our team had done on the previous years has helped us in improving our position from seven to three. Any customer can reach us directly. In case of adversity, we provide our call centre numbers and customer support number and email address in all our advertisements. Our website also has all numbers. Every customer complaint is taken into account individually at the management level.

How do you evaluate on the spare parts availability and pricing aspects? Our spare parts availability is more than satisfactory. The way one evaluates spare parts we are extremely competitive. We are one of those leading ones when it comes to spare parts. Pricing is also competing. We value our customers and want to respect their requirements. Have you tapped the potential of the online media on the sales side? We have not tapped this media currently. Any plan to sell through the internet in near future? Not currently. And there are no immediate plans that I can share. What is the roadmap for future? The strategy is very clear we are expanding our width and the quality of service we oﬀer to our customers the best. We will have presence in more and more locations.

APRIL 2012 AFTERMARKET

TYRES & RETREADING

Energy from Michelin Shambhavi Anand

MICHELIN India will contribute a significant portion of revenue that the French tyre manufacturer gets from the emerging markets, Managing Director, Michelin India, Thom Clark has said. Speaking to Aftermarket, Clark said, at a global level, the group has spelt out its ambition to grow by 25 percent in sales volumes by 2015 and a significant portion of this growth will be contributed by emerging economies like India. “We have just started out in this market and we believe that we are taking small but significant steps in that direction. We have ambitions to grow and be a significant player here,” he said. The company has launched a new range of tyres—Michelin Energy XM2, for the Indian market. The product, which has already been launched globally, is targeted at the compact and lower-mid size passenger car segments in the country. Michelin India, which is predominantly an aftermarket player in India, is also focusing on catering to the emerging demands with a relevant product portfolio that will cater to the specific requirements of the aftermarket in the country. The company claims that its products have up to 28 percent more tyre life as compared to the other products that are available in the Indian market thereby leading to less frequent tyre replacements. It also has 18 percent reduction in rolling resistance and so provides improved fuel savings and cost benefits to the user. The product is available in a wide range of sizes, starting from the 12” to 15” seat size. “In a country like India, where traffic is very heavy, road networks are either under construction or needing

AFTERMARKET APRIL 2012

repair, and distances between the city and the countryside are long, car owners can rely on our innovation to give them a tyre that provides them three most sought after benefits–longevity, fuel savings and safety (strength and reliability), all in one,” said Clark. Prior to its launch in India, the tyre has been launched in other Asian markets such as Thailand and China. The Energy XM2 tyre incorporates ‘ironflex’ technology, which provides a combination of strength and flexibility. Due to an optimised casing design, XM2 is better able to absorb and dissipate peak stresses generated when it comes into contact with any type of road hazard. Alternative bridging in the tyre, reinforces the rigidity of tread blocks. Also, the silicabased compounding gives 18 percent less rolling resistance and the new formulation of micro resilient tread compound provides a firm grip with the road surface which helps to reduce the braking distance and improving safety. Michelin India is setting-up its manufacturing unit at Thervoy Kandigai Industrial Park in Thiruvallur district with an investment of `4000 crore over a period of seven years, the manufacturing facility in India is being set up on 290 acres of land and will produces radial tyres for the truck and bus segment.

TyrePlus “Right now, we are focusing on creating the demand, creating product oﬀerings that will cater to what the

Michelin XM2 launch

consumer needs are in the aftermarket scenario. We have our presence across the country and are expanding our dealer network rapidly. We have brought in our most popular distribution programmes in India in order to increase our network throughout the country,” Clark said. “Since the last decade we have witnessed in India, an exceptional rise in consumer demand for quality services. The objective for bringing TyrePlus to India is to make available the a wide choice of tyres, other automobile related needs and tyre related services to Indian car owners under one roof,” he added. India is an important market for the company and the objective is to continue expansion on both sides—truck and passenger car tyres. The aim behind setting-up these stores is to reach out to consumers and educate them about choosing the right tyre that is suitable for their needs. Michelin has set-up 21 concept stores across India. Some of the recent openings include—TyrePlus in Delhi and Bangalore, MTSC in Panvel (Maharashtra). The other locations where it has a presence are Tamil Nadu, Maharashtra, Karnataka, Gujarat, Rajasthan, Uttarakhand and Delhi. It will continue to expand its footprint in the coming months.

AUTOMOTIVE TRENDS

Safety equipments to get increased attention from vehicle makers Abhishek Parekh

PASSENGER CAR makers are likely give increasing attention to road safety even as the overall vehicle population has been going up. The renewed focus is likely to spawn major opportunities for safety equipments and systems suppliers in the OEM and replacement market, according to a recent report from Frost & Sullivan. According to data available from Ministry of Shipping, Road Transport and Highways, around 130,300 people were killed in road accidents in 2008 and this number is likely to go up to 200,000 by 2015. Number of serious injuries is also likely to increase from 2,206,000 to as high as 3,092,000 in the same period. Even though vehicle manufacturers in India have a huge list of safety equipment to choose from, they would initially focus on bringing safety to driver and front passengers and children, according to Senior Research Analyst, Automotive & Transportation Practice, Frost & Sullivan, Aswin Kumar. It has been proven several times that airbags can save thousands of lives but there are many cars sold in the Indian market without driver airbags, whereas these features are mandatory in all the developed markets and some developing countries with smaller sales volumes than India. Government of India is likely to make air bags mandatory for passenger cars in a couple of years’ time. The other systems that could also gain increased attention from vehicle manufacturers include Electronic Stability Control (ESC) and Antilock Braking Systems (ABS); both these

There are many cars sold in the Indian market without driver airbags, whereas these features are mandatory in all the developed markets

systems are standard in developed markets already. Given this growing awareness, infotainment is likely to get huge push from vehicle manufacturers and after-market suppliers. Vehicle makers should also look into introducing active safety systems like lane departure warning, blind spot detections, and other radar-based safety systems for making cars safe, the report added.

Fuel Pricing Disparity With increased polarisation between petrol and diesel prices over the last few years, the market share of diesel vehicles has been edging steadily upwards. There exists a very strong correlation between increased petrol prices and their declining market share. In 2011, the price diﬀerence hit an all time high when petrol was priced 1.6 times more than the price of diesel. Due to this, the talks of

‘Dieselisation’ of Indian car market have been growing louder. What used to be a huge market for petrol vehicles has seen a remarkable reversal of fortunes in the past few years. Some vehicle manufacturers are looking to set-up diesel powertrain plants for capacity augmentation. Last year, the market share of diesel vehicles inched close to 40 percent. Going by current fuel price disparity, diesel cars are outselling petrol cars in the volume segment and inventory of petrol cars have increased substantially. In the Budget, the government has added an additional excise duty on diesel vehicles in 2012, which means that the demand for diesel cars may be aﬀected due to higher prices of diesel cars. In the long term, the government is likely to deregulate diesel prices which would ensure equal price parity between petrol and diesel.

APRIL 2012 AFTERMARKET

TECHNOLOGY

Denso to test VTX technology in China Our Bureau

DENSO CORPORATION, in collaboration with Tongji University (Shanghai), will begin testing vehicleto-vehicle and vehicle-to-infrastructure (V2X) technology on public roads in Taicang, Jiangsu Province, China.

Field Testing This is Denso’s first V2X technology field test on public roads in China. The company has been conducting field tests in Japan, the US and Europe for the past several years. “Due to the rapid increase in vehicles on China’s roads, chronic congestion and safety are the two largest issues, particularly in the larger cities. V2X technology, which allows cars to wirelessly communicate with other cars and roadside infrastructure, such as traffic signals, is expected to help alleviate traffic congestion and help prevent collisions,” said executive director in charge of the Engineering Research & Development Center, Denso, Yasushi Yamanaka.

Short Range Communications V2X technology will be used to wirelessly communicate the vehicle position and speed of emergency vehicles—like ambulances and fire engines–to the surrounding vehicles and roadside infrastructure. When an emergency vehicle is approaching, the technology will change the traffic light at intersections and alert surrounding vehicles to switch lanes. The experiments are intended to give the right of way to authority vehicles in

AFTERMARKET APRIL 2012

Dedicated Short-range Communications

Denso has been globally researching and developing V2X technology since 2003. One of the central focus points is Dedicated Shortrange Communications (DSRC), which is the primary enabling component of V2X communications

case of emergency and to help prevent vehicle collisions. Denso has been globally researching and developing V2X technology since 2003. One of the central focus points is Dedicated Short-range Communications (DSRC), which is the primary enabling component

of V2X communications. At its test track in Japan, Denso has simulated an urban road environment to check the communication performance and to develop and evaluate applications with actual vehicles. The results have been used to develop in-vehicle devices which have been provided to various demonstration experiments involving collaboration among automakers and government agencies in Japan, the US and Europe.

Integrated Supplier Headquartered in Kariya, Aichi prefecture, Japan, Denso is a leading supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include global carmakers. It employs approximately 120,000 people and notched up consolidated global sales for the ﬁscal year ending March 31, 2011, totalled $37.7 billion.

TECHNOLOGY

Continental to widen

ﬂeet management portfolio Our Bureau

CONTINENTAL’S VDO brand has introduced DLKPro family to make the handling of data from digital tachographs easier. The target-grouporiented products of the new DLKPro family is the practical key to the professional handling of data in the DTCO mass memory, the driver card, the workshop card, the control card for authorities, and all competing products. The latest generation oﬀers numerous innovative supplementary functions and, with the integral smartcard reader, renders additional peripheral devices superﬂuous.

Fleet Product Family Six years since its initial introduction, the DLKPro product family has developed from a relatively simple

memory stick into a vest-pocket computer. As handy as a mobile phone and just as easy to operate, the software and hardware of the new download products combine all data handling functions in one device and make external card readers unnecessary. And owing to the integrated accumulators, no batteries are needed. The 2.2-inch fullcolour touchscreen display (approx.5.6 cm) enables direct data evaluation on the key. Downloads can be controlled and data evaluated by means of an easily understandable menu that can output 29 languages. The software required for this is preinstalled. All data records get a time stamp, and a new timer function reminds the driver when downloads are due. Parallel to this, the memory has been enlarged so that now, as many as 6,000 quarterly downloads can be captured.

Fleet operators and managers thus fulfil their legal requirements to archive tachograph data with DLK Pro. In addition, there is the DLKPro TISCompact, designed for smaller fleets of five to ten vehicles and containing preinstalled software for data analysis. Driver and vehicle data thus can be quickly and simply visualised and evaluated directly in the DLKPro TIS-Compact and at the office. The DLKPro Inspection Key completes the portfolio: authorities and fleet managers can use it for the simple monitoring of permissible driving time and identify possible violations at a single glance. The individual members of the product group easily can be distinguished from each other due to their different colouring.

Solutions for trucking operations presented by the company at the show included the new HSL2 Eco Plus steer tyre & HDL2 Eco Plus Wide Base drive tyre in super single sizes to replace duals and the HTL1 trailer tyre in the category

Aftermarket Business

DLKPro Product family

Continental Commercial Vehicles and Aftermarket and Continental Tyre the Americas, LLC’s Commercial Vehicle Tyre business unit presented technologies

APRIL 2012 AFTERMARKET

TECHNOLOGY

for trucking ﬂeets and drivers at the MidAmerica Trucking Show in Louisville recently. Its “Untamed Innovation” mobile tyre exhibit targeted customers looking for the latest tyre technologies and aftermarket systems that drive their business and create opportunities for fuel savings, cost savings and regulatory compliance, said Continental’s Director of truck tyre marketing in the Americas, Clif Armstrong. Solutions for trucking operations presented by the company at the show included the new HSL2 Eco Plus (Heavy Steer Long-Haul) steer tyre, the new HDL2 Eco Plus Wide Base (Heavy Drive Long-Haul) drive tyre in super single size to replace duals and the HTL1 (Heavy Trailer Long-Haul) trailer tyre in super single category. Continental’s new “ContiGOODSCasing”, will be introduced with 2012 product launches and provides lower rolling resistance, a wider platform for increased mileage and deeper treads and advanced capabilities for re-treading through a more durable shoulder, bead and belt package. The company’s robust portfolio of new tyres is complemented by ﬂat precure tyre products that have the same tread pattern and compounding for consistent performance. ‘Axle’ is the new mascot for Continental’s TrukFix emergency road service programme for national accounts. TrukFix provides one-call access to Continental’s entire network of more than 1,000 dealers and points of sale and predictable, national pricing for tyres and related services. The company is looking to introduce ContiPressureCheck, a tyre pressure monitoring system for commercial vehicle tyres. It integrates its sensors, communication system and data processor into a single module placed inside a rubber container and glued to the inner surface of the tyre. “Compatible with

AFTERMARKET APRIL 2012

Fleet Application

The target-group-oriented products of the new DLKPro family is the practical key to the professional handling of data in the DTCO mass memory, the driver card, the workshop card, the control card for authorities, and all competing products all tyre makes, the ContiPressureCheck system immediately detects any changes in air pressure or temperature, and sends warnings directly to the display in the driver’s cab to avoid a tyrerelated breakdown before it occurs,” said Armstrong. Additionally, the company launched VDO RoadLog Electronic On Board Recorder (EOBR), an all-in-one solution for daily log book and other compliance

reporting. RoadLog is designed to allow drivers and fleets to record and report Hours of Service (HOS) and other key compliance data quickly, easily and without monthly fees. It automatically tracks the driver’s on and off duty time and can provide an instant paper report of accurate daily log book data during road checks. VDO RoadLog can also record data for a variety of reports that can help make commercial vehicle operations safer and more efficient, including Vehicle Maintenance and Inspection (DVIR), International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP). “From OE quality replacement parts to products that enhance safety and profitability, we are delighted to be able to deliver a broad range of aftermarket solutions that fleets and independent operators can use to keep their commercial vehicles on the road and operating efficiently,” said Director of sales, Continental Commercial Vehicles & Aftermarket Business Unit, NAFTA Phil McEwen.

SPECIAL REPORT

Aftersales service top priority for car buyers:

Frost & Sullivan Nabeel A Khan

For regular repair jobs, QUALITY, wider availability of aftersales service will not only increase the number of vehicles coming for repair and maintenance at the dealerships but also gives impetus to the car sales. According to a recent survey by Frost & Sullivan, over 62 percent of the new car buyers put aftersales service as the top priority and another 31 percent consider it somewhat important. The study also revealed that for 72 percent of the new car buyers, brand image plays key role while for 67 percent fuel eďŹ&#x192;ciency of the car is on the top priority. Quality of the product is the

around 57 percent of people go to the local service centres, while 62 percent go to these places for minor repairs. In case of unscheduled maintenance, 36 percent visit local workshops while for major or accident repairs only 13 percent visit local workshops

most important element for 66 percent people and for 31 percent it is somewhat important factor. While manufacturers reputation is the top priority for 54 percent of the new car buyers. According to the study, prior experience with the brands play a key role for over 47 percent of car buyers and for 39 percent of the car buyers ďŹ nds recommendations on the top of the priorities. For 42 percent of the new car buyers it is somewhat important factor.

Servicing Trend The shift from authorised service centres to local repair shop and organised independent service centres

Service Channel Preference â&#x20AC;&#x201C; By type of Service

Where Where do youdo generally take yourtake vehicle when it comes thecomes following? you generally your vehicle whentoit to the

followin

Source: Frost & Sullivan analysis

APRIL 2012 AFTERMARKET

SPECIAL REPORT

Service Channel Preference by City for Scheduled Servicing

Cost is the biggest deterrent for 71 percent of car owners for not visiting authorised service stations. There is a perception that the authorised service centres charge higher prices for servicing compared to unorganised or multi-brand garages

Where doWhere you generally take your when when it comes to regular servicing? do you generally takevehicle your vehicle it comes to regular servicing?

has been growing in recent years. The authorised service centres have been attracting only 39 percent of the customers. While the organised independent workshops have been doing well, as around four percent of car users avail of their services. However, a whopping 57 percent of vehicle users go to the local independent repair shops. In diﬀerent categories of available aftersales services, the preferences of the customers vary based on the requirements. Authorised workshops are preferred in critical mechanical works as 83 percent of car users go to authorised dealerships for accidental repair and 78 percent of car owners visit them in case of major repair. For accidental repairs, customers do not prefer independent organised service centres, and only four percent of customers or car owners opt for these garages for accidental repair. For regular repair jobs, around 57 percent of people go to the local service centres while 62 percent go to these places for minor repairs. In case of unscheduled maintenance, 36 percent of users visit local workshops while for major and accident repairs, only 13 percent of the vehicle users visit local workshops. In case of unscheduled maintenance, around 48 percent of car users visit authorised workshops.

AFTERMARKET APRIL 2012

“As over 70 percent of people service their cars at local workshops, they should have something unique to retain their customers. So the organised multirand and authorised service centres should learn best practices like retaining clients from the local repair shops.” said Senior Research Analyst, Automotive & Transportation Practice, Frost & Sullivan, Aswin Kumar.

Part Reason Cost is the biggest deterrent for 71 percent of the car owners for not visiting authorised service stations. There is a perception among significant proportion of vehicle owners that the authorised service centres charge higher prices for servicing compared to unorganised or multi-brand garages. Moreover, service warranty is another major factor leading to vehicle owners visiting the authorised service stations. The perception of getting overcharged for basic maintenance at authorised workshops keeps 41 percent car users away. However, 35 percent of the car users do not go to authorised workshops because they think the dealerships focused mostly on replacement and not repair, according to F&S survey.

Timing For Shift Eighteen percent of car owners go to authorised service centres for the first 18 months and this percentage increases to 29 percent for the first 19 to 24 months. From the first to third years after the vehicle purchase, around 20 percent of car buyers go to the authorised service centres and the percentage dives to two percent between fifth and seventh year. Services offered at the local garages are much better than the authorised service centres according to 34 percent of the car users. 20 percent of car users moved from authorised service centres to the local garages based on the recommendations by friends and family. Adding to this Kumar of F&S said“Wordof mouth marketing is very important for OEMs, if you make one customers happy, then he will probably call his friends for the service.” Authorised service station has been priority in the Tier II cities, 83 percent people in Vizag and Lucknow, while 79 percent in Patna go to authorised service centres. Local independent service stations are most popular in Ahmedabad where over 94 percent people visit unauthorised local workshops. Around 87 percent and 86 percent of people in Bhopal and New Delhi respectively frequent unauthorised workshops.

INSIGHT & OUTLOOK

Modal shift target for freight transport Lorant A Tavasszy TNO and Delft University of Technology, the Netherlands Jaco van Meijeren TNO, the Netherlands

ONE of the goals of the recent white paper from the European Commission is that 30 percent of road freight transport over 300 km should shift to other modes such as rail or waterborne transport by 2030, and more than 50 percent by 2050 (European Commission, 2011). For the purpose of a discussion on the feasibility and implications of this target, this paper reviews its rationale and the mechanisms by which a substantial modal shift could be achieved. Several concrete questions emerge as to the realisation of the modal shift target.

an increase in rail and waterways was not favoured by the market and that any modal shift policies of the past have been unable to change the share of the modes. There are, however, some autonomous future tendencies within the logistics and transport sector that might help to break this trend; these occur both on the demand and supply sides of the transport system.

In a TNO study from 2006, the theoretical potential for rail transport, inland navigation and short sea was determined for Netherlands. The study determined limiting factors, which helped deter-

Modal shift: A Trend Break Clearly, the new target calls for a major trend break in modal split. Looking back, the autonomous trend in modal split over the last 13 years shows an increase in the share of road and sea transport. There are diﬀerent underlying trends that together make up this picture, including: • Increased value density of goods and values of service, favouring road transport • Privatisation of transport markets in Central & Eastern Europe countries, also favouring road • Strong internalisation and a modest growth in domestic transport ﬂows • Decreasing shares of rail and waterways transport These autonomous trends indicate that

mine the potential of rail, inland navigation & short sea for shipments

The Impact Of The Shift In order to get an idea of the impact of this policy goal on the transported volumes by transport mode in Europe, a European trend scenario for the year 2030 based on a Trans-Tools run is analysed. This analysis focuses on the transport ﬂows within the EU27 for the year 2030; the year 2050 is not included. In the European trend scenario, limited policy measures are included to inﬂuence the modal split. The 2030 database contains information about origin regions, destination regions, transport modes,

commodities, volume in tonnes and the distance between regions. As expected, most of the transport volumes are carried over a distance of less than 300 km. For road transport and all commodities, 89 percent of the volume is transported over a distance of less than 300 km, while 11 percent of the volume is transported over a distance greater than 300 km. Per commodity, the share of transport above 300 km differs. The commodities “other products”, chemicals, metal products, crude oil and solid mineral fuels have relatively high shares of transport over distances above 300 km. Note that these numbers refer to tonnes lifted; the distribution of transport performance (tonne/km) over distance shows quite a different picture: here the majority of tonne-km (56 percent) is moved below distances of 300 km. In a next step, we focus on the transport flows over a distance greater than 300 km. Since the European trend scenario contains only a few policy measures that influence the modal split, these results can be regarded as the expected modalsplit baseline. Of the total volume of over all commodities, 75 percent is transported by road, 21 percent by rail and four percent by inland navigation (note that the accessibility of inland navigation is limited in the EU27). Commodities like solid mineral fuels, petroleum products, ores and metal waste, fertilisers and metal products show relatively high shares of rail and inland navigation. If the modal split objective is applied to these results, the modal split for the

APRIL 2012 AFTERMARKET

INSIGHT & OUTLOOK

Modal spl it development 1995-2008 in the EU27 Air |

Pipelines |

Inland Waterways |

Rail |

S ea |

Road

* 1000 mio 4500 tonnekm 4000 3500 3000 2500 2000 1500 1000 500 0 1995 SOURCE

1996

1997

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Eurostat

total over all commodities will change as indicated in the ﬁgure below. The reduction of road transport by 30 percent leads to a decrease in the share of road from 75 percent to 52 percent, an increase of rail transport from 21 percent to 39 percent and an increase of inland navigation from four percent to eight percent (if the shift of road transport is equally distributed over rail and inland navigation). This means that the volume of rail and inland navigation increases by 88 percent. The question whether this is a feasible scenario, from the perspective of available railway capacity, is discussed further in the paper. The commodities with the highest potential of this shift–simply in terms of volume of road transport—are in the “other products” category, in building minerals, chemical products and foodstuﬀs. To the extent that the market cannot absorb the burden of internalisation of external costs itself (ie, consumers are not willing to pay extra for greener products), this can be enforced through government regulation, emissions trading schemes or additional taxes or levies. Here, government is needed to select, introduce

1998

AFTERMARKET APRIL 2012

and maintain the financial schemes, limiting investments to those cases that create a net social benefit. In a TNO study from 2006, the theoretical potential for rail transport, inland navigation and short sea was determined for the Netherlands. From the perspective of the demand of transport flows (logistical requirements of the goods to be moved), the study determined the limiting factors for the theoretical potential of alternative modes. These factors were used to determine the potential of rail, inland navigation and short sea from the perspective of shipments. The maximum share for alternative modes of transport in the Netherlands, according to these criteria, came to 34 percent. As this was a theoretical exercise, it is only a crude indication of the potential. For inland waterways, the realisation is higher than the potential, due to factors not taken into account. For rail transport, the realisation was below the potential. A doubling of flows for rail and inland waterways would be an extreme scenario, however, which would not fit well to the known characteristics of the goods. In the study, the theoretical potential

for rail, inland navigation and short sea was determined from the perspective of the demand side of freight ﬂows. Of course, the supply side is also an important factor: the availability of capacity is an important requirement and increasing congestion on the road or transport charges can have a substantial impact on the shares of the diﬀerent transport modes. In a CE /TRT study from 2011– focusing on the potential of rail transport—a literature study was performed on studies of modal-shift potential. A lot of studies were reviewed,

Of the total volume commodities, 75% is transported by road, 21% by rail and 4% by inland navigation. Commodities like solid mineral fuels, petroleum products, ores & metal waste, show relatively high shares of rail and inland navigation

INSIGHT & OUTLOOK

but in the end, it was concluded that only two studies covered the maximum potential in Europe. The other studies had different objectives, scope and methodologies. The two relevant studies are briefly discussed below: Vassalo and Fagan (2005). In addition to supply and demand factors, several policies are mentioned that influence the share of rail in Europe: • Insufficiently open markets • Lack of interoperability • The national focus of European railways • Allocation of railway capacity in favour of passenger transport • Lack of productivity-enhancing infrastructure (longer trains, double stack) In a scenario with new policies that repaired all the above-mentioned deficiencies, rail freight transport could grow by 100 percent. The base potential of road transport that can be shifted to rail was estimated by EEA at 19 percent. Two approaches are applied. In the first, a theoretical potential is based on trip length and the assumption that the share of rail can rise significantly over longer

distances, leading to a growth in rail transport of 100 percent. In the second, factors such as distance, costs, quality of supply and rail access are also included, leading to a growth in rail transport in Europe of seven percent. Besides the demand side factors, another important question that determines the potential is whether there is enough capacity in the other modes of transport to absorb a doubling of flows. In the EC /TRT study, an analysis was made of the available free capacity of rail infrastructure. The main finding was that, if rail freight volume increased by more than 30 percent to 40 percent, the current rail network would not have sufficient capacity. We note that the free capacity depends strongly on whether flows are concentrated on corridors, the primary network or the whole network. A recent study on rail potential (CE, 2011) finds that an increase in rail capacity is only possible if the whole network can be employed to absorb freight growth. In a historical context of shrinking infrastructure and service networks by rail in Europe, this would require a redirection of investment, developing

Improved interoperability will not only inﬂuence strategic mode choice decisions by improving the service level of rails, but also allow new dynamic approaches to emerge, within shipping and forwarding companies terminal networks, upgrading technology outside main lines and corridors and a higher prioritisation of freight with respect to passenger traﬃc.

A Simple Mode Choice Model Below we discuss the effects of policy using a simple theoretical model for mode choice. The choice of mode in freight transport has been well researched over the past decades. The textbook model of mode choice applied most often is based on the trade-off between the out-ofpocket costs of transport (the tariff paid by the shipper) and the lead-time between origin and destination. Transport time is

Evolution Of Logistics Networks Through Time*

s • direct shipping • v ertical disintegration

1990

external collaboration • multi -user hub networks • h orizontal bundling

internal rationalisation • s tock reduction • outsourcing 3PL => 4P L

2000

2010

2020

* The dark dots (top, left) indicate suppliers, the light ones (right, bottom) indicate consumers, and the black triangles warehouses and cross-dock locations

APRIL 2012 AFTERMARKET

INSIGHT & OUTLOOK

weighted by the value of time (measured in euro/hr, per shipment or tonne). The weighted sum of tariffs and time is called the generalised costs of transport and determines the attractiveness of transport modes. Shippers will choose those alternatives that have the lowest generalised costs. In mathematical notation: GCm,g = VOTg*Tm + Pm where GC = Generalised Costs; VOT = Value Of Time; T = Time; P = Price and subscripts: M = Mode of transport; G = good The value of time of transport is closely related to the logistics characteristics of goods (see e.g., Blauwens and Van de Voorde, 1988 for a discussion). Timerelated cost drivers include physical characteristics, such as the value density of goods, their perishability, as well as other characteristics, such as order lead-time and production technology. An indication of the influence of value density on mode choice is that the value density of goods decreases for slower and cheaper modes of transport. This distribution is not fixed, however, and may change if prices or transport times change in the system.

Supply Side Changes There are many changes on the supply side of the transport market that are relevant for modal shift; examples of these include the following: • Deterioration in the performance of road, through pricing, changes in cost components such as driver wages or fuel prices, increased regulation and congestion • Improvement in the performance of rail and waterways transport, in time dimension (through increased frequency, reliability, etc.) or tariﬀs, information availability (transparency of schedules). The eﬀect of changes in transport times is

AFTERMARKET APRIL 2012

less well studied. Elasticities for changes in the transport time of other modes of transport in competition with road transport vary widely (dependent on the type of product), but may be around unity (a 10 percent decrease of transport time or increase in frequency can result in 10 percent increase in volume). It is questionable, however, whether these elasticities could be applied to major changes in transport times. In any case, a doubling of ﬂows would require a substantial improvement in transport performance. In addition to policy, there will be autonomous trends that will determine future modal split: • New technologies will change the appearance of the por tfolio of transport services on the European network:

What determines the potential is whether there is enough capacity in other modes of transport to absorb a doubling of flows. An analysis found that if rail freight volume increased, the current rail network would not have sufficient capacity modes will be able to provide better service through seamless integration. • Improved interoperability will not only influence strategic mode choice decisions by improving the service level of rail, as intended by the policy; it will also allow new dynamic approaches towards mode choice to emerge, within shipping and forwarding companies. • Real-time information on network performance and open, a modal transport booking systems will allow flexible consolidation schemes and dynamic switching between modes.

Demand Side Changes Changes on the demand side that can lead to a modal shift are less straightforward to explain than supply side changes, as they require a change in the logistics processes. In our choice model, a move away from road transport would be achieved if the VOT, or time sensitivity of the goods were to decrease. Where firms are able to reduce the VOT, their generalised costs of transport would already decrease even if they used the same mode of transport. Examples of measures to slow down flows include: • Reduction of perishability with improved conditioning (example: flowers in reefer containers) • Increasing slack in the supply chain with higher inventories, increasing shipment sizes and lead -time (example: urban consolidation centres) • Horizontal cooperation with other shippers to consolidate shipments (example: Dutch GreenRail system) Note that these changes are very difficult, if not impossible, to induce or influence through public policy. These measures are not even easy to implement for companies themselves, as they require a careful reconsideration and reorganisation of logistics structures and operations. Companies are generally well aware of typical issues, such as the trade off between transport and inventory costs, or the benefits of improved conditioning. However, other measures are more complex, such as the creation of hybrid networks, where logistics channels are split into two or more parallel channels, according to demand volume and variability. Currently, such innovations are still decades away for many companies. At the same time, it is part of a long term autonomous evolution of supply chains and will, sooner or later, transform the industry.

PAINT & REFINISH

Bosch offers ﬁnishing edge Bhargav TS

BANGALORE-BASED Bosch Power Tools has entered into the paint and refinishing business to support the Indian automotive aftermarket business. After acquiring the SIA Abrasives, Bosch has access to all its products comprising painting and refinishing systems. With the help of SIA Abrasives, the Bosch Power Tools division intends to strengthen its focus on surface technology, and to extend its existing portfolio. Bosch Sanders assures the smoothening of rough and hardened edges that are made by using body fillers and primers to fill dents, scratches and marks on the vehicle exteriors. The varied accessories such as buffing and polishing pads from SIA Abrasives along with the new range of Bosch Polishers help in further enhancing the finish. “When it comes to innovative abrasives, SIA Abrasives is one of the world’s top three suppliers,” said Country Manager, Marketing, Bosch Power Tools, Rakesh Handoo. He also added that the time consumed for the paint and refinishing work will be less when compared to the normal tools used in the industry. Elaborating on the denting procedure, Handoo said, “Normally the dents in the vehicles are mechanical in nature because it is a metal body, which can be removed either by using the vacuum suction on the dent or it can be removed by tinkering process. Then the body fillers were used to fill the gaps. For the finishing process, Bosch Sanders will be used for body filler for sanding. After the putty has been dried, again the sanders are used for finishing. Once the putty is done one uses the primer spray, which will be coarse in nature, to remove these coarse materials, again the Bosch sanders are used to remove the same. For all

Bosch’s pain and refinish solution

these applications, the tool remains the same except the grade of the sand paper varies. This eliminates the changing tool time and enables better ﬁnish.” While painting the vehicle, there will be lot of dust particles present in the atmosphere like dust snips and orange peel, which causes damages to paint and peel of easily. To avoid it, Bosch’s rubbing compound plays a vital role in removing

Bosch Power Tools division intends to strengthen its focus on surface technology with SIA Abrasives, and to extend its existing portfolio the dust snips. Once the clear coat is done, wool backup pad is used as a first process to take out the dust snips and take out the orange peel. Following this, the finishing compound which is normally called it as polish is done to make the final process. With the help of SIA products, Bosch Power Tools make the process easier and faster and the quality is also maintained on par with the OE finish.

Handoo said, “While using the manual spray guns in the paint shop, there will be a lot of orange peel on the paint and there might be dust particles present in the atmosphere, which will affect the quality of the paint. Therefore with the help of wool backup pad, we can enhance the quality of the painting process. There are many workshops which are in the roadsides and have more dust in the air. With the help of these products we can address those workshops needs.” Normally the paint finishing process comprises three steps—One is the rubbing compound, then finishing compound and finally hand waxing. For these processes, generally the workers require three different kinds of tools to be used. However, with the help of Bosch tools, one can execute the same with a single tool that reduces the time by 50 percent when compared to the regular tool. For drying the primers and putty surfaces faster, Bosch has hot air guns that are extensively used in the paint booths. The tool is perfectly suited to thawing, drying, speeding-up the drying process of glued connections, shaping, and dustfree removal of paint. This gamut of tools assures to deliver results even on curved surfaces with ease and convenience.

APRIL 2012 AFTERMARKET

SPECIAL REPORT

The Budget Effect? Our Bureau

THERE is mixed response for the Union Budget 2012 presented by the Finance Minister Pranab Mukherjee, from the automotive aftermarket players. The increase in service tax has become a worry, however, it has been increased across board and so the impact is not only for the auto industry. Except for not directly taxing the diesel vehicle, the Budget has very little cheer, especially for the auto industry. And it is evident from the muted response elicited from the auto sector for the Budget. While the pundits say that the minister has tried to strike a balance between the necessity for growth and fiscal compulsions, the impetus for growth should be more to achieve the GDP target of 7.6 percent in 2012-13. The FM has outlined concrete steps towards implementation of Direct Tax Code (DTC) and the GST. Customs duty remains unchanged for auto components—however, it may not help the sector as the expenditure will be increased due to increase in service tax and excise duty. Increase in customs duty on the flat-rolled steel from five percent to seven percent could unfavourably impact the auto component sector as this is one of the key input materials for the industry. According to the Chairman of Vikas Group and Auto Vikas Sales & Service Pvt Ltd, Praveen Agarwal, “the service tax has been increased for all the sectors at the equal levels, so it will impact the automobile aftermarket in the same manner as any other industry. However, I don’t see much adverse impact of the budget on the dealership or aftersales

AFTERMARKET APRIL 2012

business. The increase in excise duty was even less than what the industry was expecting.” Auto Vikas owns GM dealerships and workshop in Delhi. Similarly, Amit Manaktala who owns Topsel Toyota in Kolkata said, the increase in service tax is going to impact the sales of vehicles. “The increase is excise duty for big car is unfair, especially for products like Innova which is also used for public transport,” he said.

Vinnie Mehta, Executive Director, ACMA

Anand Sundaresan, MD, Schwing Stetter

Timeline For GST In the Budget, the body-building of commercial vehicles has now got an ad valorem duty of three percent, but “I need to go through the ﬁne print to comment on this. If it is promoting the unorganised sector then it is not very healthy, the President of SIAM, S Sandilya has said. There were several positive outcomes that the auto industry had expected that the FM will come out with speciﬁc timelines for introduction of DTC and how petroleum subsidies would be addressed. The road map for implementation of Goods & Services Tax (GST) has not been given except for stating that the

necessary constitutional amendments will be taken up and the platform for implementation will be operationalised by August 2012. The Executive Director, ACMA, Vinnie Mehta said, “We are glad that the Finance Minister has outlined concrete steps towards implementation of DTC and the GST. We do hope that these critical reforms are undertaken and implemented at the earliest.” Another aspect that SIAM had not expected was the increase in customs duty on non-alloy ﬂat rolled steel products, which will inﬂuence price of steel and impact costs of manufacturing in India. According to Mehta, this could unfavourably impact the auto component sector as this is one of the key input materials for the industry. He said the enhancement of excise duty would adversely impact the prices of vehicles and in turn their consumption. This is of concern to the auto component sector as the sector grows in tandem with the vehicle industry. These changes in taxes and duties will increase the cost of ownership for the customers

SPECIAL REPORT

when they go for after sales service for their vehicles. Jt MD, Hero MotoCorp, Sunil Munjal said the excise and service tax should not have been increased, especially at a time when the growth is nebulous already. This may lead to increased pricing. But the focus on SMEs and other manufacturing sector is positive. “I am disappointed that due to political compulsions, the FM has not been able to implement the many steps required to give a strong boost to the economy. One would wish that the politics of the country was better coordinated, with a consensus on economic policies among various political parties, to enable bold economic measures to be implemented,” said Chairman, Force Motors, Dr Abhay Firodia. According to the General Manager (Market Development), Maha India Automotive Testing Equipment Private Limited Rengarajan, the increased service tax, excise duty and custom duty has not affected the company much. The company, which is primarily into automation inspection certification and also supplying testing equipment such as brake testers, suspension testers for OEM authorised service stations, has been importing testers for the less than two years. So far it has not affected badly with the increased duties especially on imports. MD, Scania Commercial Vehicles India, Henrik Fagrenius said the government has taken a step in the right direction in placing emphasis on developing the infrastructure in the country. However, “we believe that this will gain momentum when the GST regime is implemented and the FDI into multi-brand retail entry into the country is approved. We do hope to hear positive news on this at the earliest that will go a long way in the development of the Indian economy. According to the Managing Director of Schwing Stetter, Anand Sundaresan, the increase in service tax and excise

duty from 10 percent to 12 percent was expected and didn't come as a surprise. According to the Director, Metals & Minerals Practice, Frost & Sullivan— South Asia,Middle East and North Africa, Venkatesan Subramanian, the steam coal (classiﬁed under CTH 2701 19 20) is being fully exempted from basic customs duty along with one percent CVD; full Basic Customs Duty (BCD) exemption is being extended to coal mining projects. Basic Customs Duty (BCD) is being reduced to 2.5 percent for the capital goods/ equipment required for setting up

Pawan Goenka, President, Automotive & Farm Equipment Sectors, M&M

headings 7208, 7209, 7210, 7211, and 7212 is being increased from ﬁve percent to 7.5 percent. Due to this the imported ﬂat rolled products will become more expensive. This will protect domestic steel plants as it will shield them from the competitive pricing from imports.

Warehousing

Praveen Agarwal, Chairman of Vikas Group & Auto Vikas Sales & Service

or substantial expansion of iron ore pellet plants and iron ore beneficiation plants. On account of these initiatives, steel plants will benefit through since good quality coal imports could be used as fuel. With the exemption of customs duty and CVD, price of coal will reduce and keep domestic coal prices under check. This will in turn reduce the production costs of steel and thereby improve steel companies’ profitability. Also, the duty exemption for coal mining projects and duty reduction of mining equipment for iron ore plants would promote coal mining activity and iron ore pellet plants and enhance the availability of coal and iron pellets for the steel industry. Secondly, the BCD on flat-rolled products of non-alloy steel whether or not clad, plated or coated falling in

Programme Manager, Transportation & Logistics Practice, Frost & Sullivan, South Asia, Middle East and North Africa, Srinath Manda said that the measure announced in the Budget of investment linked deduction of capital expenditure is likely to make investments into warehousing a further attractive option driving their development and growth. Though there is no direct impact to the aftermarket, the increase in excise duty and service tax will inflate the cost structure. The overheads for the service centre will shoot up further affecting the bottom line of every business in the aftermarket value chain. Moreover, there will be slight surge in the aftermarket activities due to postponement of new vehicle purchase. There is no doubt that the Budget is indirectly influencing the automotive aftermarket. -With inputs from Abhishek Parekh, Nabeel A Khan, Shambhavi Anand and Bhargav TS

APRIL 2012 AFTERMARKET

GLOBAL

Honda Institute conferred

‘outstanding’ grade HONDA (UK)’s apprenticeship programme, delivered by its training facility, the Honda Institute, has been given an ‘outstanding’ grading from Ofsted—the Office for Standards in Education. Inspectors carried out the report in January 2012 using a variety of methods such as questionnaires, observing learning sessions and group and individual interviews. A key paragraph from the reports states that “the overall effectiveness of Honda’s apprenticeship programme is outstanding and the programme provides exceptional value for money. Learners enjoy their training and develop excellent occupational skills, making a highly valued contribution to their workplace”. The report uses a four point scale to grade the report (From one = outstanding to four = inadequate) and the record of main findings state that the apprenticeship programme scores a grade of one in each of the following main areas such as overall effectiveness, outcomes for learners, quality of provision and leadership and management. The Honda apprenticeship programme takes place over two years for Lawn and Garden and Marine; and three years for cars, parts operations and motorcycle/ATV. During this time, apprentices are employed by their local Honda dealership and attend block training at the Honda Institute working on products within one of the five divisions. Qualified apprentice graduates achieve an Intermediate Apprenticeship for Lawn & Garden and Marine; and an Advanced Apprenticeship for Cars, Parts Operations and Motorcycle/ATV. Technical Training Operations Manager, Paul Taylor at the Honda

AFTERMARKET APRIL 2012

Honda Institute gets outstanding grading from Ofsted

Institute commented, “The Honda Institute is the home of Honda’s people development and we work hard to support skill and knowledge in our car, motorcycle and power equipment networks. A good understanding of both the economics of our industry and people’s desire to learn and improve is fundamental to our operation. Having the right skill and knowledge to look after our products is key to maintaining performance and reliability. Our customers expect highly trained and skilled technicians in our network of dealerships and that’s exactly what we deliver through apprenticeships. “The grading from Ofsted is a real testament to the professionalism and passion of our people and underpins everything we do. Graduates from the Honda Apprentice Programme make up 20 percent of Honda (UK)’s car and motorcycle technicians, a grading of ‘outstanding’ reinforces that we are getting it right.” Honda (UK)’s apprenticeship

programme has recently scored 90.8 percent—14.4 percent above the national average—for its completion rates and 89.8 percent—24.5 percent above the national average—for its ‘timely success’ score. As their titles suggest, completion rates show how many apprentices actually ﬁnish the apprenticeship programme and timely success rates show how many apprentices complete within the time frame promised by Honda (UK). Scoring is carried out quarterly by the Skills Funding Agency (SFA)—the funding body for national apprenticeships. The Honda Institute was opened in 2001, and is the home of people development for Honda in the UK. Working with sector skills and industry bodies, the Honda Institute provides a measurable contribution to business performance. Some 10,000 people are employed in Honda dealer networks, and the Institute delivers around 25,000 days worth of training every year.

GLOBAL

Digital watermarking drives Citroën campaign

New direct marketing campaign for Citroen uses interactive digital watermarking

CITROEN UK has started a new interactive direct mail campaign to raise awareness for its new ﬂagship DS5— the third model in Citroen’s distinctive DS line. The campaign was designed by creative agency We Are Acuity, and incorporated digital watermarks and attached digital content created by print-to-mobile specialists Digital Space. The digital watermarks are used in conjunction with the Digital Space smartphone app, to provide an interactive experience direct from the page to a smart phone. Over 200,000 target customers will receive the interactive mailer, of which, there are 192 versions, each personalised with a dealer’s details and

invisible digital watermarks for DS3, DS4 and DS5—making a total of 576 individual watermarks. To experience the mailer in action, customers can download the ‘Digital Space’ app on their phones and scan the digital watermarks embedded in the images on the mailer. A dealer personalised phone app is shown to the customer upon scanning the image, helping to drive leads and traﬃc direct to the relevant retailer. From the app, customers can view nine images and three videos for each of the DS line models, as well as their local dealer’s full address. They also have the ability to participate with a number of calls to action. These include making a

call to their dealer, requesting a brochure, requesting a call back, booking a test drive or expressing an interest in a ‘DS Discovery Day’. Citroen dealerships have organised DS Discovery Days since last month, as part of the official launch of New DS5 this month. With a DS-focused display in showrooms, or at off-site venues, the DS Discovery Days are a stylish and engaging way for customers and prospects to discover and experience DS5 with the full DS line up. The app also allows Citroen to help measure the success of the mailing piece, with insightful reporting dashboards enabling a clearer understanding of how the customer engaged with the content. All interactions within the app can be collected, managed and directed to the relevant dealers. Acuity’s Managing Director, Peter Cronin said, “Brands in this space are particularly keen to engage with customers and to build themselves into a lifestyle. Social media is particularly topical, as well as other emerging technologies and apps. However, print is still a great method of communicating with customers en masse. Inspite of the unprecedented levels of personalisation now achievable by digital print, the vast majority of direct mail still follows a fairly generic model of a standard print piece, possibly personalised with a dealer’s details. This new approach represented a great opportunity for Citroen UK to further stand out from its competitors.” Director at Digital Space, James McIntosh said, “We were delighted to be involved with Citroën in such a campaign and offer our expertise in bridging the gap between offline and the mobile web. We delivered a solution that enables the consumer to access mobile content directly from the creative piece, with clearly defined and measured calls to action.”

APRIL 2012 AFTERMARKET

GLOBAL

Europcar to help charge

EV usage EUROPE car hire service company, Europcar, is inviting motorists to test electric vehicles. It believes that by hiring, business and leisure renters would discover electric cars offer a really costeffective and environmentally-friendly way to get around the Capital and this could help in encouraging more motorists to buy electric in the future. Three years since Boris Johnson announced his plan to make London the electric car capital of Europe, it was reported last month that only 588 extra electric cars have been registered in the city. Managing Director, Europcar UK Group, Ken McCall said, “It could be the ideal option for motorists keen to reduce their fuel costs and avoid congestion charges. Buying an electric car is a big step to take, but hiring one enables motorists to check that the new technology can meet their expectations without taking an expensive risk. New figures suggest that London is being slow to embrace electric cars.” But it could be the ideal option for motorists keen to reduce their fuel costs and avoid congestion charges. Europcar has recently added the 100 percent electric Nissan Leaf to its fleet in London. With 400 charging points now installed across the city, the company believes that the ideal time for motorists to test out the new technology has arrived. Hiring a Leaf could be the ideal option for motorists keen to reduce their fuel costs and avoid congestion charges. At the forefront of electric vehicle technology, it fits perfectly with our philosophy of pioneering sustainable

AFTERMARKET APRIL 2012

Nissan Leaf available for rental at Europcar Nissan

Buying an electric car is a big step to take, but hiring one enables motorists to check that the new technology can meet their expectations without taking an expensive risk car hire solutions, giving customers a real choice when it comes to car hire. The LEAF has a homologated range of 108 miles (175 km), which is more than 90 percent of Europeans drive

in a day. And although it is as easy to drive as a conventional car, every Europcar customer hiring a Leaf will be given a face-to-face handover by a Europcar representative who has been fully trained on the car and its workings. Plus, Europcar will recharge it completely free of charge, even waiving the standard service fee usually made for vehicle refuelling. “Europcar continues to invest in the quality of our ﬂeet and that includes electric cars, to ensure we oﬀer the widest possible choice of vehicles. With access to the new generation of electric vehicles, Europcar customers can try before they buy or just enjoy the cost savings on short city trips,” concluded McCall.

GLOBAL

New online avatar to raise

Mercedes-Benz profile MERCEDES-BENZ UK has launched its revamped national fleet website— www.mercedes-benz.co.uk/fleet—as part of a new campaign, designed to continue raising the profile of the brand amongst the fleet and leasing market.

Comparative Analysis The new fleet site is designed to be an easy-to-use tool to highlight that Mercedes-Benz vehicles are a costeffective solution for fleet and small business, by showing all current offers on the cars, tax calculators and information, model cost comparison charts, price lists and e download brochures. Head of Fleet at Mercedes-

The new site is designed to be an easy-to-use tool to highlight that MB vehicles are a cost-effective solution for ﬂeet & small business, by showing all current offers on the cars, tax calculators & other information Benz, Nick Andrews said: “We are delighted to launch our refreshed and restructured fleet website, which now has the ability to serve content to all audiences—company car drivers, small business, fleet managers and chauffeur business. We have also added a new ‘meet the team’ page to launch our great fleet sales team to the market and make it much easier for people to get

in touch. “This new website highlights our commitment to make Mercedes-Benz UK much easier to deal with for the ﬂeet market; this is an important step in making our ﬂeet strategy a reality.” Mercedes-Benz UK is the sales and marketing organisation responsible for all Daimler products and services in Britain.

We have also added a new ‘meet the team’ page to launch our ﬂeet sales team to the market and make it much easier for people to get in touch— Nick Andrews, Head Of Fleet, MB

Wider Coverage As well as selling cars, vans, trucks, parts, and service, the company runs Mercedes-Benz World at Brooklands a brand experience centre in Weybridge, Surrey. Mercedes-Benz World has welcomed 1.5 million visitors since it opened in 2006. The Mercedes-Benz UK group of companies directly employs over 4000 people, and 11,000 colleagues

at independent retailers. Over 500 Apprentices have passed their professional qualiﬁcations at the company’s in-house Training Academy. The UK is also home to MercedesBenz HighPerformanceEngines and the Mercedes AMG Petronas Formula 1 team, where 1000 dedicate their work to Grand Prix Engineering.

APRIL 2012 AFTERMARKET

GLOBAL

HSS Hire renews MB fleet contract MERCEDES-BENZ has retained the contract to supply HSS Hire, the national supplier of tool and equipment hire and services, with its fleet of commercial vans. In 2009, HSS selected Mercedes-Benz as its sole van supplier, having been impressed with the safety, reliability and environmental credentials of the range. As the vans come to the end of their lease, Mercedes-Benz has now secured the contract to supply all replacement units, as well as a range of new vehicles. HSS trials have shown that MercedesBenz vehicles are out on the road, rather than in a workshop, for twice as long as other vans, offering better reliability and fewer maintenance issues. In addition, the use of Eco-Start in the Sprinters has lead to a significant reduction in fuel consumption for the company; a major saving for running expenses and environmental impact. Further reductions were also seen in the number of vehicle accidents, which dropped considerably thanks to the extensive safety systems, including Adaptive ESP stability programme, seat belt tensioners and adaptive brake lights, all fitted as standard on Mercedes-Benz vans. The latest consignment consists of 170 Sprinter 313CDI Long Chassis cabs as well as 25 Vito 113CDI Long Panel vans. The Sprinters, which will be used for collection and delivery of HSS hired equipment, feature a 13 ft 6” alloy dropside Arnold Clark body with a 500 kg column tail lift and towing upgrades to 6,300 kg. Alongside the Sprinter, 313CDIs are the brand new addition to the HSS fleet, in the shape of 25 Vitos with tailgate and internal racking and storage solutions, which will be used primarily

AFTERMARKET APRIL 2012

Mercedes Benz retains HSS Hire fleet contract Mercedes

Trials have shown that Mercedes-Benz vehicles are out on the road, rather than in a workshop, for twice as long as other vans, offering better reliability and fewer maintenance issues for onsite maintenance and repair of hire equipment. Fleet Manager, Lee Jackson at HSS, said, “At HSS, safety is paramount so making sure that the vans we chose oﬀered sophisticated safety features played a large part in our decision making process. In addition, the reliability of Mercedes-Benz

vehicles and the service and support they offer will help keep us on the road and make sure we are better equipped to serve our customers. “We’ve introduced the Vitos to our range as they offer an increased payload and better mpg, which will mean our fitters can carry more parts and attend to more customers in any one trip”. Van Sales and Marketing Director for Mercedes-Benz UK, Steve Bridge, said, “HSS is a perfect example of why keeping a business moving is so important, especially in the current climate, and thanks to the team at Mercedes-Benz UK and at Enza Motors, we have been able to provide the right vehicles to deliver the right results for HSS.” The vehicles, sold by Enza Motors, based in Warrington, will be maintained via the Mercedes-Benz dealer network.

GLOBAL

Toyota’s new programme warrants customer support TOYOTA has introduced a new Approved Used Car Warranty programme to give even greater peace of mind and support for customers buying older and high-mileage vehicles.

The terms of the Toyota Approved Used Car Warranty mean that, should any part covered by the warranty fail, it will be ﬁxed at an ofﬁcial Toyota Service Centre, using genuine Toyota replacement parts. The warranty includes MoT test cover and it can be upgraded to include roadside assistance through membership of Club Toyota. Toyota’s used car outlet

This reﬂects how built-in Toyota quality is giving owners the opportunity to purchase extended warranty cover for used cars. Under the new programme, customers buying a Toyota Approved Used Car with up to 150,000 recorded miles will be given a minimum 12 months' warranty, with the easy option to top-up the extended warranty to provide up to ﬁve years' cover. This is a Toyota-backed warranty, not a third-party insurance product.

Easy Payment Options If the used car is less than five years old when purchased, up to 48 months'

warranty can be added; if it is between five and eight years old, up to an extra 24 months can be purchased. To make access to the extended warranty options more flexible, Toyota has launched new monthly payment plans. Customers can spread the cost of their cover across a fixed term of up to 48 months, subject to the age and condition of their vehicle. The terms of the Toyota Approved Used Car Warranty mean that, should any part covered by the warranty fail, it will be ﬁxed at an oﬃcial Toyota Service Centre, using genuine Toyota replacement parts. There is no charge to the customer for parts or labour; they

are only required to pay for scheduled annual servicing and maintenance (more frequently for higher mileage use).

Club Toyota The warranty includes MoT test cover and it can be upgraded to include roadside assistance through membership of Club Toyota. The extended warranty includes 12 months' club membership. Manager Vehicle Remarketing & Cost of Ownership, Iain McCall, said: "We believe our new extended warranty programme gives our customers what they really need, with similar protection and peace of mind that come with the ﬁveyear warranty on all our new vehicles.

APRIL 2012 AFTERMARKET

GLOBAL

BMW Group UK honoured by Institute of Customer Service THE Institute of Customer Service has honoured BMW Group UK for its commitment to excellent and innovative customer satisfaction presenting the company with the prestigious Kcom Customer Feedback Strategy Award. Presented to BMW Group UK's first Customer Director, Richard Price, the award recognised in particular the customer service system in operation in all BMW and MINI UK dealerships that allows every customer to rate their experience on a five star scale and write specific comments on dealer websites. "This award recognises our commitment to providing the very best service for our customers and there is absolutely no doubt that satisfied customers drive the success or failure of businesses," said

Award submissions are scored against pre-set criteria by a panel of industry experts and ﬁnalists are assessed by an independent group of judges selected for their business knowledge and acumen Managing Director of BMW Group UK, Tim Abbott. "We are determined to put the customer at the heart of everything we do and Richard's appointment to the new role of Customer Director is key in making sure this is a fundamental part of

our overall business strategy." With eleven categories, award submissions are scored against pre-set criteria by a panel of industry experts and finalists are assessed by an independent group of judges selected for their business knowledge and acumen. Customer Director, BMW Group UK, Richard Price added: "We are delighted by this award, particularly as BMW Group was the only automotive organisation across all categories to make it into the finals. Our star ratings, a first of its kind in the automotive industry, help all BMW and Mini customers to make informed choices and inspire everybody in the company and in our dealer network to strive constantly to provide better customer service."

Johnson Controls raises batteries prices JOHNSON Controls Inc will implement an eight percent price increase on leadacid batteries sold in the United States and Canada from May this year.

Air Quality Standards “Johnson Controls supports the rational tightening of standards such as the National Ambient Air Quality Standard and the National Emission Standards for Hazardous Air Pollutants,” said President, Johnson Controls Power Solutions, Alex Molinaroli. He added, in a press statement, that the standards have tightened ten-fold and would require signiﬁcant investment from

AFTERMARKET APRIL 2012

manufacturers. More stringent national air standards for lead emissions were issued by the United States Environmental Protection Agency in 2008 and again as recently as January 2012. Johnson Controls also anticipates increased standards related to employee safety and employee blood lead levels. According to Molinaroli, the company is investing $162 million on its North American recycling centres to be sure they meet the latest environmental standards, as well as an additional $50 million to further improve the company’s already industry-leading employee blood lead levels at its battery manufacturing

facilities. Johnson Controls is a global auto component supplier employing around 162,000 people. It supplies lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles as well interior systems for automobiles. Johnson Controls Power Solutions is a leading lead-acid automotive batteries and advanced batteries for start-stop, hybrid and electric vehicles. The company’s 50 manufacturing, recycling and distribution centres supply more than one-third of the world’s leadacid batteries to major automakers and aftermarket retailers.

PRODUCTS

Vehicle Security and Tracking Devices TCOP is a GSMbased vehicle security and tracking device. At the core of GSM-based tracking solution is a proprietary hardware device that has components, like power adapter, antenna, central processing unit, device software. The device is ﬁtted in each of the mobile assets to be tracked and it contains a GSM communication engine that stays in synchronised contact with the GSM network, via SIM. The central processing unit in the device runs on custom software that communicates with the GSM network and gets location information from the nearest GSM tower. This information translates into a user-readable format and sends an SMS using the GSM network to a mobile phone.

i-Trans Technologies Pvt Ltd Bengaluru - Karnataka Tel: 080-26788000 Email: marketing@tcop.in

Stacker Parking Systems THESE are ﬆacker parking systems for parking of two cars. The parking syﬆems are equipped with a single platform, allowing long-term parking on the upper level and short-term parking on the lower one. For use of the upper platform vehicle from the lower parking space is removed. These syﬆems are suitable for medium and large buildings and can also be inﬆalled into exiﬆing buildings. A lengthwise or breath wise arrangement may be selected according to the condition of the site.

Kamex Mechanised Parking Jaipur - Rajasthan Tel: 0141-6511501 Email: contact @kamexparking.com Website: www.kamexparking.com

All-Purpose Foam Cleaners THE Cyclo MaxClean is all-purpose foam cleaner that contains specialty detergents, which cleans and restores colour and appearance. With deep-cleaning foaming action the foam cleaner works as great as spot carpet cleaner. Boosted with orange oil it is a natural cleaner and has a pleasant citrus fragrance. The cleaner removes bad odours from the seat, covers, and carpets. The Cyclo MaxClean foam cleaner is used on plastic, vinyl, carpet and fabric. It is available in packaged form of 624 gm.

Pidilite Industries Ltd Mumbai - Maharashtra Tel: 022-33087000 Email: emcd@pidilite.com Website: www.pidilite.com

Composite Impact Wrenches THE new Chicago Pneumatic CP7748 is a durable and powerful ½” impact wrench in the entry level composite range. It is an aﬀordable tool yet very reliable for tyre shops, general maintenance on vehicles and light industrial maintenance. Features include: extreme torque of 922 ft lbs to 1250 Nm of maximum torque in reverse, durable steel aluminum alloy back housing, thermoplastic rubber injected in housing for a durable and comfortable grip, universal & durable twin hammer mechanism, full teasing ergonomically developed trigger, ergonomic handle in composite material, decreases fatigue of the operator, and 360-degree swivel air inlet.

Chicago Pneumatic Thane - Maharashtra Tel: 022-39982731, Mob: 09967047733 Email: ashish.malhotra@cp.com Website: www.cp.com

APRIL 2012 AFTERMARKET

PRODUCTS

Trailers

A complete range of trailers from 20 ft to 40 ft, 2/3 axles, skeletal and flatbed trailers is offered. Standard features are Rolled Jindal I-Beam 455 with additional reinforcement used to avoid bending and increase central ﬆ rength, 12 twiﬆ lock with 150 I-beam reinforcement, 10 leaf YTE 75 York suspension, 15 ton suspension, tool box (900 x 750 x 475 big size to fit all tools easily), air tank of 50 litre capacity to avoid break grabbing issues at slope areas, York king pin, mechanical parking brakes, etc.

Seamless Autotech Pvt Ltd Pune - Maharashtra Tel: 02135-662431, Mob: 09881254788 Email: marketing@seamlessautotech.com

Silent Blocks A wide range of silent blocks are fabricated using optimum quality raw materials. These blocks can be offered as per specifications provided by client. The silent blocks play a fundamental role in the suspension syﬆems. In these silent blocks, the rubber is bonded to the outer tube and the outer tube is press-fit/interference fit to the moulded inner tube. Applications are in automotive and refrigeration induﬆ ries. Salient features include: high-degree of torrential ﬆ iffness; wear & tear-free; durability; high-performance; resiﬆance to oxidation, ozone & radiation; indefinite shelf life; and anti-abrasive.

Shalaka Polymers Nashik - Maharashtra Tel: 0253-2380057, Mob: 09822080157 Email: shalaka.polymer@gmail.com Website: www.shalakapolymers.com

Automotive Air-Conditioning

Triplex Plunger Pumps THE high-pressure triplex plunger pump (series 8000) with unloader and safety valve is coupled with elect ric motor or diesel engine and assembled with centrifugal pump and fi lter to ensure supply of pressurised clean water at the pump inlet. The complete pump unit with local control panel, inﬆ rumentation and safety controls is mounted on a vibration-free fi xed base frame or towable trolley with solid/pneumatic wheels. The unit is suitable for operation in hazardous area with flameproof elect rics. The pump is compact in design and rugged in conﬆ ruct ion with quieter operation.

AIR-CONDITIONING involves more than cooling. The moﬆ air-conditioned vehicle is the automobile and millions of syﬆems are sold annually. Moﬆ of the automobiles today are ﬁtted with air-conditioners at the manufacturing ﬆage. But many other conveyances are air-conditioned as well including buses, ambulances, vans, trailers, trucks, recreational vehicles, tractors, crane cabs, aircrafts and ships. Air conditioning is a natural choice while cuﬆomising a vehicle. The vagaries of climate and pollution necessitate insulating the cabin from outside environs.

UT Pumps & Systems Pvt Ltd Mumbai - Maharashtra

Kotkar Energy Dynamics Pvt Ltd Pune - Maharashtra

Tel: 022-32992488, Mob: 09322658363 Email: info@utpsl.in Website: www.utpsl.in

Tel: 020-25815315 Email: info@kotkar.com Website: www.kotkar.com

AFTERMARKET APRIL 2012

PRODUCTS

Exhaust Gas Recirculation Cage Pallets Tubes IN these exhaust gas recirculation (EGR) tubes a ﬂexible bellow is incorporated as an integral part of the structure. These tubes are designed and developed as per customers’ requirements and tested to withstand the vibrational stress of high temperatures. The EGR tubes are provided with accessories, such as coupling clamps in order to couple with the mating castings. These tubes are custom-designed on individual requirements for after treatment of exhaust gases.

THESE supreme quality cage pallets are completely designed with extreme quality raw material and are procured from renowned industries. The cage pallets come in diﬀerent speciﬁcation with respect to application. Base is made of MS tubular structure with sides of wire mesh provided at the bottom for forklift or pallet truck entr wire mesh pallets are used in automobile industries as well as warehouses of large factories. It has up to 1000 kg weight bearing capacity with even load distribution.

Alfa Flexitubes Pvt Ltd Bahadurgarh - Haryana

Ahlada Industries Pvt Ltd Hyderabad - Andhra Pradesh

Tel: +91-1276-268119,+91-01686-267175 Mob: 09811209178 Email: alfaﬂex1@gmail.com Website: www.vanjax.in

Tel: 040-2309 4301/302 Mob: 0810075011 Email: induﬆ ries@ahlada.com Website: www.ahlada.com

www.oillubesystems.com

Quality Product

Tool Trolley

Multi Drawers Tool Trolley

Quick Service Trolley

Cost Effective

Quick Service Trolley

Oil Filtration Unit

Waste Oil Disposer Injector Cleaner & Tester

Oil Disposer

Oil Dispenser

Quick Service

Filter Cleaning Unit Heavy Duty Bike Lift

Heavy Duty Work Table

Parts Washer

Go- Jack

Transmission Jack

Dual Scissor Lift for Cars

Mobile Service Van

Dealers / Distributors Enquiries are solicited for : NE Guwahati, East Patna, South Chennai, Central - Nagpur -Lube System

O il

OIL LUBE SYSTEMS (AN ISO 9001 : 2008 CERTIFIED CO.)

Office : Badkhal Pali Road, Badkhal (Opp. Delhi Masjid) N.I.T. FARIDABAD - 121001 Works : Plot No. 32, Badkhal Enclave, N.I.T. FARIDABAD - 121001 (Haryana) INDIA Ph. : 0129-2430786, 2461646 Mob. : 09911244531, 09810460773 Fax : 0129-2430786 E-mail : marketing@oillubesystems.com; bnpandey.ols@gmail.com;

APRIL 2012 AFTERMARKET

PRODUCTS

Impact Hex Sockets THE heavy-duty six-point impact hex sockets are used with pneumatic/electric impact wrenches and nut runners. These have a single hex broaching for good grip on nuts and bolts to avoid tools slipping during high speed tightening operations. The extra wall thickness of the sockets, together with special steel and heat treatment process, helps to absorb shock transmitted to the socket while in use with impact wrenches. These sockets are also provided with two cross holes and groove for locking onto the impact wrench using O-ring and pin arrangement. These are ideal for operating with hydraulic wrenches and are most suitable for use in automobile industry.

Tulex Industrial Tools (P) Ltd, Thane - Maharashtra Tel: 0251-2436207 Mob: 0810075011 Email: tulex@vsnl.net Website: www.tulextools.com

PVC And Nylon Fasteners HEX HEAD BOLTS, hex head screws, nuts, washers, slotted machine screws, etc, of commercial quality made from polypropylene and nylon are oﬀered. These fasteners are available in BSW, mm size, standard and coarse pitch. Materials of construction include PVC, nylon and polypropylene. Applications of the fasteners are in industries, such as petrochemical, fertilizer, chemical, cement, machine tool, textile, automobile, etc.

Easy Shine Polish THE SONAX Easy Shine is an innovative product. It is a wax polish with advanced formula, which is used in direct sunlight and on hot paintwork. The Sonax Easy Shine makes polishing eﬀortless and provides a long lasting, with high gloss shine. It cleans & polishes and protects.

Methods Automotive Pvt Ltd Bengaluru - Karnataka Tel: +91-080-22217879 Mob: 09413303674 Email: ashish@methods.co.in Website: www.methods.co.in

Studs And Spindles THE studs are available from 3 mm to 75 mm, 1/8” to 3” and 6BA to 0BA diameter. Slotted type, full thread studs, drill hole type, hex and square head type studs are available from 2” to 12” and 50 mm to 300 mm full thread roll threaded stud spindles six mm to 12 mm and 1/4” to 2½” diameter. These products are made as per IS, BS, JIS, GOST, ASTM, ISO, ANIS and DIN standards or as per customer’s drawings and samples. Threads are in mm size standard, coarse, ﬁne or special pitch, BSW, BSF, UNC, UNF, A-193-B7 and B8. Materials used are MS 4.6 grade, EN-8, 6.6, 8.8 grades, EN-19, 10.9 grade, EN-24, 12.9 grade, brass, copper, SS-304/316, A-193-B7, R, S, T and V grades. Applications are in machine tools, light and heavy engineering industry, pumps and valves, hydraulics and pneumatics, automobiles, chemical, injection moulding machines, diesel generators and other service industries.

ABC Industrial Fasteners, Mumbai - Maharashtra

Zenith Industrial Products Mumbai - Maharashtra

Tel: 022-2847 0806 Mob: 0810075011 Email: abc@precibolts.com Website: www.precibolts.com

Tel: 022-2847 0806 Mob: 09924566887 Email: zenith@zip-india.com Website: www.zip-india.com

AFTERMARKET APRIL 2012

PRODUCTS

Circlip Pliers

Water Pump Seals

THESE assembly pliers are developed especially for safe and economic work. The pliers guarantee easy, precise and eﬃcient work, mainly in the automobile industry and workshops. These pliers are manufactured from chrome–vanadium steel and then burnished black. Tips are precision manufactured to very ﬁne tolerances. The functional design and practical construction allow work to be done safely and sensibly, even in awkwardly accessible conditions. Various other torque tools and assembly tools are also available.

THESE seals are usually of the ﬆationary ﬂoating face design with a single coil spring surrounding the elaﬆomer bellows. They are also normally supplied as a cartridge assembly, or in automotive induﬆry terminology a cassette, complete with a sleeve ready to be assembled direct ly onto the water pump shaft.

Summit Engineering Technology Pvt Ltd Navi Mumbai - Maharashtra

Die Loaders

Tel: 022-2764 2776, 2769 9667,9821150858 Mob: 0810075011 Email: summit2@vsnl.com Website: www.summitengg.com

Hydraulic Car Lifts THESE hydraulic car lift is designed as per customers’ specifications and developed with the help of premium grade of raw materials using most sophisticated technology. The range of car lifts finds application in different sectors, like automobile, heavy engineering, etc. Some of the salient features include multi-utility, highly durable, lifting height up to desired height, etc. The hydraulic car lift has a haulage height of up to 12 meters with a capacity of three tons, which makes it suitable space saver as modular car parking equipment.

Servo Tech (India) Delhi - Delhi Tel: +91-011-23259123 Mob: 09810287375 Email: servotechindia@hotmail.com

Avon Seals Pvt Ltd Chennai - Tamil Nadu Tel: 044-26880225, Mob: 09381009070 Email: shubhasuresh@avonseals.com

THE model model TL-4M Truckman hydra trucks (also called die loaders) is eﬃcient and ideal material handling equipment, designed for quick loading and unloading of press tools or machine parts, crates, oil drums, components, etc. Pump is manually operated and is of double acting type complete with oil tank with release valve capacity of 500 to 1000 kg. Maximum height of lift from the ground level is 1400 mm. Lowered height is 140 mm. Platform size is 700 x 700 mm. The unit is mounted on polymer wheels for easy movement and long life. Applications are in tool rooms, godowns, engineering units and chemical and petrochemical industry, automotive industry, etc.

Textile Machinery Manufacturing Company Ahmedabad - Gujarat Tel: 91-079-22941389 Mob: 094284 07325 Email: truckman@eth.net Website: www.truckmanindya.com TMMC

APRIL 2012 AFTERMARKET

PRODUCTS

Lifting Equipment THE Hercules 4.0 CF clear ﬂoor lift is completely electro-hydraulic and made according to accurate structural calculation, with a capacity of four tonne. High-pressure cylinders in each column provide mximum lifting force and smooth operation. The lift is equipped with safety valve to prevent overloading and in case of hydraulic pipe fracture. Other features include mechanical safety catches with automatic engagement, automatic arm restrain, perfect synchronisation between cylinders regardless of load distribution, self-controlled lowering speed, and special overhead padded limit switch to prevent damaging vehicle being raised too high.

Cockpit Spray (Lemon) THE Sonax cockpit spray lemon cleans and maintains all car interior plastics. It has a dustrepellent eﬀect. It is antistatic and even maintains wooden ﬁttings. It brings a new shine and fresh fragrance to the cockpit. The Sonax cockpit spray lemon protects plastics against brittleness and is silicone-free.

Sonax GmbH, Neuburg Tel: +49-8431-530 Mob: 0810075011 Email: info@sonax.de Website: www.sonax.com

Wheel Balancers

THE durable safety hand shield protects welders’ faces while welding. It is made up of cotton fibre and is designed to provide safety to users. The hand shield provides heat resistance, chemical resistance and durability. It possesses excellent quality and comes at competitive prices. Also offered is safety hand shield as per customers’ specifications and requirements.

THE commercial wheel balancer offers features required by most of the operators. Model WB-VL65 professional wheel balancer comes with 15.5” TFT monitor suitable for 10”24” rim dia and maximum 65 kg wheel weight. It is suitable for car and LCV wheels. Features include TFT monitor, static and dynamic balancing, simultaneous display of inner and outer plane results, two modes of measurement (normal & fine), five modes of alloy wheel functions, self-checking, online error display facility, dimension setting in inch or mm, unit conversion in grams/ounces, self-calibration, automatic distance input mechanism, mid-centering device for positioning and rim accuracy, quick change lock nut to ensure fast mounting & removal of wheels, etc.

Atul Arc New Delhi - New Delhi

Manatec Electronics Pvt Ltd Puducherry

Tel: 011-2573 6102,9811825256, 9810273058 (SK Jain) Mob: 0810075011 Email: info@atularc.com Website: www.atularc.com / www.atularc.net

Tel: +91-0413-2248926 Mob: 09344643104 Email: sales@manatec.net Website: www.manatec.net

ARO Equipments Pvt Ltd Gurgaon - Haryana Tel: +91-0124-4585400 Mob: 0810075011 Email: info@aroequipments.com Website: www.aroequipments.com

Safety Hand Shield

AFTERMARKET APRIL 2012

PRODUCTS

Gas Torches

Hydraulic Pumps

THE gas torch is lightweight and convenient to handle, made of high quality brass stamping, which makes it sturdy, dependable and durable. The stainless steel spindle with a tapered nylon seal is an excellent leakproof device. Silver soldered joints make it trouble-free, leakproof and strong. Prolonged service life and its ability to work on low-pressure gases make it an excellent tool for welding. The torch is available with Swage-type nozzles in varying sizes of 2, 3, 5 and 7 for welding mild steel up to 8 mm thickness. It is available in high-pressure and low-pressure ranges as well as premium and standard range. The gas torch is ideal for sheet metal work and pipe welding in garages and workshops.

PULSAR hydraulic pumps are designed to meet or exceed the original equipment they replace. These pumps are manufact ured with all new materials and components and are teﬆed under rigorous quality control. The pumps are made to ensure trouble-free service life. Tight process control ensures consiﬆency of product. These are made from special alloy extruded aluminium, which ensures long service life. The pumps are 100 per cent teﬆed with endurance teﬆ ing carried in house periodically. These are available in ﬆandard mountings and provide eﬃcient pumping without air pockets. The hydraulic pumps are assembled and teﬆed in duﬆ proof assembly room, all gears hardened and shaved for beﬆ results.

Pilot India, Mumbai - Maharashtra

Shriram Automotive Products Ltd, New Delhi

Tel: 022-6697 8900 Mob: 0810075011Email: sales@pilotindia.com Website: www.pilotindia.com

Automobile Engineering Components A wide range of automobile engineering components are offered that include CNC machine parts, bearing assemblies, machine nuts, elect rical rivets, washers & pins and seat camshafts. Cuﬆomers can also avail precision engineered self-tapping screws, brass screws, hex bolts, insert bolts, metal rivets and hex nuts. These components are fabricated from different grades of brass, aluminum and copper. Besides, these can be cuﬆomised as per cuﬆomers’ specifications.

Sakshi Engineering Works Ghaziabad - Uttar Pradesh Tel: 0120-3940428, Mob: 09811900822 Email: samar_veer1976@yahoo.co.in

Tel: 011-40433111, Mob: 0810075011 Email: sapl@shriramautomotive.in

Hydraulic Presses THESE are multi-purpose presses used in general workshops and automobile workshops for ﬆ raightening, press fitting, bending, forming, punching, assembling, dismantling, etc. The presses are operated with manual hand pump or with power pack. These are also available with adjuﬆable daylights. Specifications are altered as per individual needs. Exclusive benefits and features include: heavy-duty conﬆ ruct ion, moveable work table, large day light, hydraulic return concept, rigid frame under full load, operated manual or with separate power pack. Technical specifications include: capacity of 5 to 200 tons, ﬆroke 150 to 600 mm, and daylight from 300 to 2000 mm.

Hydropack India Pvt Ltd Belgaum - Karnataka Tel: 0831-2442559, Mob: 09449595040 Email: snd@hydropackindia.com Website: www.hydropackindia.com

APRIL 2012 AFTERMARKET

AFTERMARKET APRIL 2012

1304550

Jan. 2011

Over Apr.-Jan. (10-11)

Apr.-Jan. (11-12)

% Change

2011-12 Apr.-Jan.

(10 Months) in F.Y.

Avg. Mthly. Prdn.

(10 Months) in F.Y. 2011-12 Apr.-Jan.

Avg. Mthly. Prdn.

Jan. 11 (Prodn.)

Jan. 12 over

1299626

1333585

1385018

Jan. 2012

% Change

Truck/Bus