Aftermarket - November 2011

INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

68 Pages `50

Vol. 1 No. 5 November 2011

The

Retail Effect

NEWS Shell

SPECIAL REPORT Wabco

INTERVIEW

Arvind Kapur, President, ACMA Brought to you by

Auto Monitor

EDITORIAL Train the Truant THE hardening of interest rates has moderated the growth of the passenger car and the commercial vehicle segments. Nevertheless, these segments did not witness negative growth.

The two-wheelers segment continues to grow. While it is good news for the vehicle and component manufacturers, the increasing vehicle parc results in two things—one, increasing the traffic flow and two, the customers face problems in getting quality aftersales service of vehicles. Individuals cannot do anything to manage traffic or create more space on the roads, as it is for the government to create the requisite infrastructure.

However, servicing the vehicles can be managed by creating more outlets. While it is easier to set up service centres, the availability of skilled manpower is an issue. Despite vehicles, becoming modern and technologically advanced, the men carrying out service are largely the uneducated lot. Can this work in the future? It will not. As the vehicles are getting more techintensive, calling for skilled and experienced hands to handle servicing is crucial. Secondly, the customer expectations are high—not only in terms of high quality service / repair, but also for a shorter turnaround time at the garages. And this is possible with the people who organise education and training. Therefore it calls for a stream of education in vehicle servicing.

Currently the service centres recruit people—matriculation passed or failed—and train them on the job. However, it is not effective since certain parameters of servicing / repair calls for knowledge of basic science and mathematics, which the current level of new employees at the service stations may not possess. This segment also needs customised curriculum to educate and train people. The government can think of introducing a curriculum on automobile servicing in industrial training institutes and other technical institutions. Industry and academia can partner to address the issue. Presently, it is being done in a very small way in a few states, however, these are miniscule when compared with the demand.

When the Indian automotive industry reaches $145 billion in the next five years, as per the Automotive Mission Plan 2006-16, it needs to add at least 25 million people. Of this estimate, skilled workers will contribute to 15.5 million (or 62 percent of the requirement), while unskilled workers will number about 2.5 million. Thus the need of the hour is to create as many streams of education as possible to cater to the increasing demand. Creating specialised courses in automobile servicing will spur more employment opportunities and also help the auto industry to witness healthy growth. Besides, it will also help the society at large, since handling the vehicles in a systematic way will help conserve precious fuel.

Wishing you much pleasure reading. Do send us your feedback.

T. Murrali t.murrali@infomedia18.in

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CONTENTS NEWS

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12 Mercedes-Benz opens 3S Transcar India in Chennai 13 AIS to expand portfolio in aftermarket 16 ALL Dost enters Kerala, four dealers chosen 22 Toyota launches free checks across India 26 Comet, Aquila to get support from Garware Motors 27 SKF provides solutions for Indian grand prix 34

COVER STORY 30 Maruti’s certified spare parts initiative, MGP shows the way for OEM-backed retail network Maruti Genuine Parts has not only been a success but has led to fellow car makers following in Maruti’s footsteps

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The

IN CONVERSATION 34 ACMA President, Arvind Kapur on plans to take the auto component industry to the next level

Retail Effect INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET

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33 Vol. 1 No. 5 November 2011

68 Pages `50

The

Retail Effect

NEWS

Shell

SPECIAL REPORT

INTERVIEW

Wabco

Arvind Kapur, President, ACMA Brought to you by

REARVIEW 39 Bosch launches next-gen exhaust analyser, diagnostic station

CUTTING EDGE

Auto Monitor

Cover Design Mahesh Talkar

33 Driving guidance device to reduce carbon emission

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Cara Tredget, Ferrari Technology Manager at trackside laboratory of Shell in Indian GP

Shell takes learning from F1 track to everyday usage Shambhavi Anand

AT the maintenance paddock, in the heart of the Ferrari garage, when drivers and other members of the team where busy preparing for the fi rst Formula One of India, three scientists from Shell were working hard towards the same goal in a makeshift lab trying to make both fuel and engine oil work to best of their capabilities in order to make the speedy engines of the team even more speedy.

Shell, the group of energy and petrochemicals companies, works closely with the Ferrari team in Formula One to develop the highest performance Shell V-Power race fuels and gain the best reliability from Shell Helix Ultra racing lubricants for the Ferrari team.

“Engines of Ferrari rev upto 18,000 RPM. There is a lot of friction produced during the rubbing of components during the process. Out of the eight engines

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that every team gets for one season, each engine has to run for around two and a half thousand kilometres. So it is extremely necessary for each engine to perform to the best of their capabilities. And for that to happen our fuel and engine oils have to be of impeccable quality,” Ferrari Technology Manager, Cara Tredget said.

By test ing and analysing the Shell V-Power race fuel and Shell Helix lubricants, the scientists at Shell can tell the health of the engines and predict failures that might occur. They take samples of the oil from the fuel tank after the engine has been driven and inform Ferrari about the condition of each engine. “It is really important for Ferrari to know the results of the analysis,” Tredget added.

Apart from the analysis of the samples of oil from the fuel tank, the team also analyses samples from other storage areas such as tanks and drums. “We

NEWS

Trackside laboratory of Shell

check for any sort of anomaly from the ideal samples that was approved by FIA. Any sort of anomaly might not be malicious, but may also storage issue,” she informed. The Fédération Internationale de l’Automobile (FIA) is the governing body for world motor sport and the federation of the world’s leading motor-

ing organisations. It has specifications of components and their proportions that fuel and engine oils can have. The test done on these samples are known as gas chromatography, which basically tests for the finger print of the oil.

These learnings from the track are used to develop Shell V-Power fuels

for road cars, to help power and protect them worldwide by powerful cleansing and frict ion modification technology.

“While these tests and other act ivities in the lab are important for Ferrari, they are extremely important for Shell.

We take the learning from here and share it with our colleagues in the main laboratory and other offices around the world. Our oils help in minimising friction and increasing the performance of engine. We use various new various additives and components in different proportions here for and we like them to migrate those learning into our everyday programmes,” Tredget informed.

Talking about the learnings from this season she elaborates, “We use two types of biofuel for Formula One (primarily because of FIA mandate), which can be employed for commercial usage.”

The Formula One track also acts as a test track with extreme conditions for test ing the performance of the oils.

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Mercedes-Benz opens 3S Transcar India in Chennai

Transcar India; (Inset) Peter Honegg, MD & CEO, Mercedes-Benz

Bhargav TS

MERCEDES-BENZ, inaugurated its 3S (Sales, Service and Spares) facility, Transcar India in Chennai recently. Th is is the luxury car manufact urer’s largest dealership in south India, which can accommodate 20 cars and has three bays for service.

Addressing the press during the launch of the showroom, CEO &

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Managing Director, Mercedes-Benz India, Peter Honegg said, “The luxury car segment in India is growing faster and consumers in Chennai are exposed to the global lifest yle and are looking for the best in luxury and technology. The multi-storeyed showroom has the capacity to display 20 cars and has been designed in such a way that at every level, there is a different experience zone for displaying various segment cars along with the accessory sect ion.”

Mercedes-Benz is also planning to

start leasing its cars in India to attract entry level luxury car buyers and start its used car business. It hopes to attract people who want to buy cars that are priced below `20 lakh and will start in Delhi, Mumbai, Pune and Kolkata.

The company recorded a growth of 12 percent in September 2011 over last year and aims to sell over 7,000 units this year compared with 5,600 units last year. Honegg also indicated that the company has plans to introduce the diesel version of some of its models.

NEWS

AIS to expand portfolio in aftermarket

Arvind Singh, President, Asahi India Glass

Nabeel A Khan

AIS Glass Solutions, one of leading automobile glass manufact urers in India, is looking at enhance its presence in the aftermarket, especially in the commercial vehicle segment by expanding its product portfolio.

The manufact urer of laminated windshields and tamper-proof glasses, is working on including a broader range of innovative products, including introducing a type of glass that reduces the intensity of sunlight into the car. Such a glass will eventually enhance the fuel

NOVEMBER 2011 AFTERMARKET

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efficiency of the vehicle by means of reduced pressure on the air conditioning among other advantages.

A foresightful endeavour towards the vision is its in-house development of manufact uring equipment and processes, which consecutively lowers cost s, decreases lead times and processes while boost ing competitive st rength. It has developed a range of product s that provide value added features such as water repellent glass, which enables the driver better visibility during rains, a radio antenna printed on the glass rather than in the form of traditional antenna systems, rain sensors fitted onto the glass, which automatically act ivates the windshield wiper system.

“The main reasons for the sinking profit margin and stagnation in the PV segment are inflation in price of input material and cost of energy in terms of elect ricity”, AIS India Glass, Arvind Singh told Aftermarket. However, the commercial vehicle segment has maintained a sustainable demand that made the company think of increasing its focus on CV aftermarket.

Its customers include all the major car makers and in the commercial vehicles segment, Volvo, Daimler and Tata Ace are among the major takers of its glasses. The glass-maker is continuously seeking expansion of aftermarket business by enhancing its presence in the value chain in a manner in which it can meet customer demand at the individual level throughout the country. A significant way is by expanding its network such that its distribution footprint covers an increasing part of the vehicle population of the country.

AIS has clocked a turnover of `1,556 crore in FY11 of which, `900 crore came from the automotive glass business. The company snapped around 18 percent of the total automotive business from the aftermarket and 70

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percent from OE and the rest from other earth moving equipment, metro coaches and exports. It may be noted that the company has recently supplied glasses to new metro coaches in Delhi.

The glass-maker has witnessed stagnation in the passenger vehicle segment, while the commercial vehicle segment registered a growth of 20 percent in July-August compared to last year in the same period.

The manufacturer is working on a range of innovative products, including a type of glass that reduces the intensity of sunlight into the car. This will eventually enhance the fuel efficiency of the vehicle by means of reduced pressure on the air conditioning.

Other products developed are a water repellent glass, which enables the driver better visibility during rains and a radio antenna printed on the glass Expanding Horizons AIS is mulling options to increase its product ion volume by at least 25 percent each year as the company envisages a growth of 15 percent in revenue in FY2012 compared to last year. The company is weighing the pressure on the profit margins and is getting into lean manufact uring with the help of low cost automation. Towards this, it has invested about `30 crore during the last two years.

Exports contribute seven percent to its automotive business, which comes primarily from the European markets, in the aftermarket space. While this business is a fast expanding, the compa-

ny also is evaluating other markets and segments for growth.

AIS manufact ures a wide range automotive safety glass, floatglass, architect ural processed glass and glass products. It is transforming itself to a solutions provider by moving up the value chain of auto glass and architect ural glass and providing design, products and services that make glass more versatile and user-friendly.

Brownfield Expansion Expansion plans will not be through the greenfield route. Instead, it is looking at ramping up capacity at its exist ing facility. “For the next couple of years, we will meet the demand growth by expanding capacities in these locations. Our capacity expansion programme also ensures that we are continuously upgrading technology—whether it is for greater product range or for productivity enhancement,” President, AIS India Glass, he added.

Currently, the company has manufact uring facilities for automotive glass at four locations—Bawal (Haryana), Chennai (Tamil Nadu), Roorkee (Uttarakhand) and Taloja (Maharashtra). All the locations have the required infrast ruct ure including sufficient space for brownfield expansion. Th is allows AIS to plan its expansions in the shortest possible way rather than the normal cycle time, besides being cost effect ive.

The glass manufact urer has installed robotics in the drilling procedure and also introduced other forms of automation at its facilities to help in revival of dipping profit margins. The company used to have a profit margin of 20 percent which slipped to 18 percent last year. However, with upgraded technology it hopes to restore the same profit level soon. The product ivity of the human resource has been going up by 10 percent every year.

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Bharat Yatra to increase festivity VW launches Our Bureau

FORD India recently launched ‘Ford Figo Bharat Yatra.’ The carmaker’s largest act ivation drive successfully culminated in Jalandhar, Kochi and Bhubaneshwar, close to Diwali fest ival.

The pan-India drive covered 1000 towns across 20 states of India in a short span of 100 days. The Yatra created an experiential opportunity for consumers to connect to Ford Figo, ‘India’s Most Awarded Car Ever’ resulting in over 17,000 test drives.

The Ford Figo Bharat Yatra was kicked off in July 2011 to celebrate the phenomenal success of Figo including the milestone of 100,000 sales within 15 months of launch, growing exports to 27 international markets, and industry-wide recognition as a value-for-money vehicle. “An impressive number of enquiries,

on-spot bookings and thousands of test drives conducted during this Yatra clearly suggest that Figo’s proposition of being a value-for-money vehicle continues to find resonance in the market,” said General Manager, Marketing, Ford India, Sriram Padmanabhan.

Endeavour 4x4 launched Gearing up to the fest ive mood, Ford India has introduced a limited edition of Endeavour 4x4 Hurricane.

The Endeavour 4x4 Hurricane Limited Edition will be available at an attract ive price of `20,13,244 (ex-showroom Delhi) and will be equipped with a new muscular Front Nudge bar that adds to the muscular and tough look, specially designed Chrome exhaust trims, 5th-door convex mirror and the contemporary Hurricane body decals.

Planet Volkswagen VOLKSWAGEN has recently launched Planet Volkswagen in Delhi.

According to the company, this is the biggest digital initiative so far. The Planet Volkswagen will not only act as a platform for product and brand information and services, but also a universe of fun and entertainment for every car enthusiast from all age groups.

Th is digital initiative will not only showcase the world of Volkswagen in a 3D digital space, but also allow and engage the user to explore information on automobiles, drives, games and contests. It will enable them to build their own community using social media channels like Facebook, Twitter and Youtube. The OEM hopes that this would enable Volkswagen to generate positive word-of-mouth publicity.

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Dr V Sumantran , Executive Vice Chairman, Hinduja Automotive and Chairman, Nissan Ashok Leyland Powertrain, inaugurating the 3S facility of Malayalam Motors in Kochi

Ashok Leyland Dost enters Kerala, four dealers chosen T Murrali

OCTOBER 21 marked the entry of Ashok Leyland’s small commercial vehicle— Dost in Kerala, otherwise called as God’s own country. The Hinduja Group flagship company launched its vehicle in Kochi and Kozhikode followed by Th iruvananthapuram the next day. The ex-showroom price of the vehicle ranges from `3.79 lakh to ` 4.39 lakh.

As part of the company’s st rategy, the vehicle is being initially launched in the four southern states (Tamil Nadu, Karnataka, Andhra Pradesh and Kerala), Maharashtra and Gujarat.

It will be made available across the country in a phased manner as the product ion ramp up is executed. To reach out to the customers in Kerala, Ashok Leyland light vehicles have appoint-

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ed four dealers Malayalam Motors and Indus in Kochi, EVM Motors in Th iruvananthapuram and Indus in Kozhikode.

Dost is entering the Small Commercial Vehicle (SCV) market (below 3.5 tonne) which is witnessing a perceptible upward shift in terms of features, performance and payload.

The overall LCV market (up to 7.5 tonne) is growing robust ly, fuelled by the increase in urbanisation, organised retailing, improved rural connect ivity coupled with growth in rural demand.

Aiding this growth are factors like increased focus on the hub-and-spoke model.

The vehicle, which has a payload capacity of 1.25 tonne, will be available in three versions with the top-end version featuring air-conditioning, power steering, dual-colour beige-grey trim

NEWS

and fabric seats. It is equipped with 55 HP, three-cylinder 1.5 litre common rail TDCR engine, tuned for fuel economy as well as the driveability and gradeability required for Indian roads.

The company is also offering ready-touse-vehicles on the Dost platform for various applications such as refrigerated containers, steel containers, ambulance, aluminium fi xed side decks and serviceat-site vehicles.

At a media conference, the Executive Vice Chairman, Hinduja Automotive and Chairman, Nissan Ashok Leyland Powertrain, Dr V Sumantran said, “With the commercial launch of Dost, Ashok Leyland fi lls an important gap in its product lineup.

The vehicle embodies our attempt to deliver to the Indian LCV customer, Japanese technology at Indian costs. It is a true reflect ion of the evolving needs of today’s Indian LCV customer and

Dost is entering the SCV market (below 3.5 tonne) which is witnessing a perceptible upward shift in terms of features, performance and payload

we are happy that we have been able to manufact ure a product that will be attuned to the growing expectations of the LCV market. We have attempted to pack a lot into DOST—increased

payload, improved fuel efficiency as well as class-leading performance, comfort and safety, all aimed at offering a uniquely superior experience at a very competitive cost of ownership.”

responsible for all the dealership business in Kerala. The object ive is to leverage local resources to cater to the customers thereby growing its overall business. It began its business in the state by kicking off 3S facility for Ashok Leyland Dost called Malayalam Motors in Kochi. Within a span of ten days it has received more than 75 bookings for Dost.

The group is also setting up another 3S facility in the southern part of the Kochi for Ford India. The facility, called Malayalam Cars will be operational before the end of this calendar.

Interest ingly the group’s foray into passenger cars came in 1996 by becoming the fi rst dealer for Ford vehicles in India. It currently has dealerships in Chennai and Pondicherry.

Ravindranathan, who was selling Toyota cars in the Middle East close to three decades ago had debuted in

vehicle dealership business in 1986 by selling earthmoving machineries such as front-end loaders, rear dumpers, hydraulic excavators and bull dozers, under the brand MPL. After selling earthmoving machineries for sometime, MPL expanded its business in late 1980s by foraying in to ‘surface miners’ that are used for excavating lime stones. Almost all the cement manufact urers are its customers. The group then became a dealer for Mahindra & Mahindra to sell utility and commercial vehicles. With MPL Adventure Sports Vehicles, it has entered in to selling off-road and all terrain vehicles. MPL will be completing the spect rum automobile dealerships with the opening up of its two-wheeler showroom for HMSI in Chennai. The showroom is getting ready and will be operational in a month’s time.

MPL Floats Malayalam Group

S Ravindranathan, Chairman, MPL Group

Chennai headquartered automobile dealership group MPL, which is celebrating its 25th anniversary this year has forayed in to the neighbouring st ate, Kerala by floating a separate entity—Malayalam Group. The Chairman MPL Group, S Ravindranathan, told Aftermarket that the Malayalam Group would be

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Ravi Chawla, President, Gulf Oil Lubes, Dr Sumantran, Vice Chairman, Hinduja Automotive & Nitin Seth, ED, LCV, Ashok Leyland

Ashok Leyland,Gulf Oil MoU oils way for new lubricant Our Bureau

ASHOK LEYLAND and Gulf Oil joined hands to launch a co-branded range of lubricants for the new range of Ashok Leyland light vehicles including Dost, which is the first vehicle from the Ashok Leyland-Nissan joint venture. The exclusive range of co-branded lubricants, branded as the next generation or 'NxG' series, has been specially blended by Gulf Oil and has been jointly tested for superior performance.

The NxG series is the fourth range of co-branded lubricants launched by Gulf Oil in association with various OEMs in the past one year. The launch adds to Gulf Oil’s exist ing broad portfolio of co-branded products. It is also a reflect ion of the confidence that OEMs repose on Gulf Oil for their technical prowess, dist ributions st rengths and equity of brand ‘Gulf ’, which is one of the fastest growing in recent years. In

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a scenario, where operating economics are so crucial, the 'NxG' series of lubricants will go a long way in lowering operating costs for light vehicle owners.

Speaking at the Dost launch in Mumbai, President, Lubricants, Gulf Oil, Ravi Chawla said, "We are delighted to introduce this new range of high-performing lubricants that will add value to the users of Ashok Leyland's light vehicles. The new NxG range reaffirms the commitment of both the organisations towards their customers.

Gulf Oil is proud to be associated with the Ashok Leyland-Nissan joint venture and looks forward to a long and mutually beneficial association."

Executive Director, LCV Marketing, Ashok Leyland, Nitin Seth stated, "Gulf Oil leads the indust ry in terms of technology as well as dist ribution and have proven st rengths across segments. They have been pioneers in creating long drain engine oils which

allow the consumer to get the maximum out of his vehicle. We are pleased to jointly launch the NxG series of co-branded lubricants with them to cater to our customers." The NxG series has eight products in various customer friendly pack sizes.

In a previous initiative of a similar nature, Ashok Leyland and Gulf Oil jointly launched the'Max' range of cobranded lubricants for the medium & heavy commercial vehicle segment pioneering the trend of long drain lubricants in India.

Gulf Oil Corporation is an established player in the lubricants market in India and markets a wide range of products/services for the automotive business including lubricants, car care, fi lters, lubrication systems and recently launched two-wheeler batteries. Today, the Gulf brand is present in more than 80 countries with operations in five continents.

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APAC 16 aligns industry with global standards, collaborate on innovations The event has set the roadmap for sustainable technologies for safe and smart mobility Our Bureau

THE Society of Automotive Engineers India (SAE India) recently hosted the 16th Asia Pacific Automotive Conference (APAC 16) in Chennai in a bid to bring together the industry, the academia and the government to draw a roadmap for the automotive indust ry. Th e conference created a platform for an exchange of ideas and insights on contemporary challenges for sustainable technologies for safe and smart mobility. The event witnessed a participation of about 1,000 people from the global and domest ic automotive community, Around 140 technical papers were presented, and the event witnessed the participation of 100 exhibitors from SAE USA, Japan, Korea and other countries.

The conference highlighted the areas of engine technologies, green vehicles, safety, automotive infotronics, frugal engineering, collaborative innovations, IPR policy and regulations. PatronAPAC 16, R Seshasayee and Executive Vice-Chairman, Ashok Leyland, said that the conference has provided the platform to address burning issues like public transportation, sustainable mobility, vehicle safety apart from developing upon the usual technical areas of discussion. “We need to integrate the best practices in design and development. It is only right that expectations are met with action,” he added.

The Chairman, Steering Committee, APAC and President, Automotive & Farm Equipment Sectors, Mahindra & Mahindra, Pawan Goenka, said that in the world

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(L-R) Prof Thanakom, Senior VP, SAE Thailand; Dr Pawan Goenka Chairman, Steering Committee, APAC & President, Automotive & Farm Equipment Sectors, M&M; R Seshasayee, Patron-APAC 16 (Executive Vice-Chairman, ALL); SR Marathe, Chairman, Exposition Committee, SAE India (Director, ARAI)

(L-R) Asit K Barma, Chairman Southern Section, SAEINDIA; David Schutt, CEO, SAE International; R Dayal, President SAE India, Chairman, Steering Committee APAC16; Venu Srinivasan, Chairman,TVS Group; R Seshasayee, Patron, APAC 16 (Executive Vice-Chairman, Ashok Leyland ); Ted Robertson, President, FISITA & President, Magna International, Canada & Aravind Bhardhwaj, Chairman, Organising Committee, APAC 16 (CEO, Automotive Infotronics)

of automotive engineering today, there is a lot of st ress on finding sustainable solutions. APAC 16 has provided a platform on how the automotive world can contribute towards the environment and conservation of resources.

Clearly, innovation is what will take the indust ry to the next paradigm, he said.

“In the future,” stated the Chairman, Exposition Committee, SAE India and Director of ARAI, SR Marathe, “there

will be a need for the Indian automobile industry to work closely with infrastruct ure development.” He added that electric mobility and hybrid electric vehicles will be the game changers in the market. “By building a seamless mobility network in the country, we can tap the complete potential of sustainable mobility and make a larger impact on the environment,” he opined.

Earlier, inaugurating the three-day

NEWS

conference, Chairman, TVS Motor, Venu Srinivasan said India is securing its spot in the global automotive landscape and has a global responsibility towards taking measures in reducing emission of CO2 and encouraging usage of cleaner energy. “Indian cities are growing at a rapid pace and we will need to focus on sustainable technologies as a core part of the business. Customers are also increasingly aware of the benefits of such initiatives and are making wise choices.

Technology offers enormous possibilities to address problems not only in the manufact uring stage but also through the entire product life cycle.”

Seshasayee said there are a number of factors that are accelerating change in the Indian automobile industry. The impetus from the government has helped the industry clock a phenomenal growth rate. The Indian automobile industry, is estimated to have a turnover of $73 billion, accounting for six percent of the GDP, and is expected to hit a turnover of $145 billion by 2016. The depletion of natural resources has alerted the industry to look at producing “no more waste” than the planet’s restorative capability. India brought in a radical change in manufact uring with its cost effective frugal engineering. The acceptance of sustainable transportation is gaining wide acceptance and has become a competitive advantage for automobile manufact ures. Sustainable technology will change design and operational characteristic of mobility in the country.

The President of FISITA and the President of Magna International, Ted Robertson, felt that APAC 16 is a significant initiative towards India being a collaborator in innovative technologies, which will transform the sustainable mobility in the country. The event has been a successful platform provider for the world’s automotive engineers to share knowledge for the advancement of every aspect of automotive technology and

indicate the future direction of automotive engineering worldwide. During his presentation he said that the global vehicle production is set to increase to 102 million units by 2017 from 72 million in 2010. While the share of North America will dip from 19.7 percent in 2010 to 18.4 percent in 2017 and Europe will drop from 27.9 percent to 26.7 percent the share of Asian region will increase from 52 percent to 54.4 percent dur-

challenge of creating equilibrium between manufact uring and environment. The indust ry is being sensitised on the emerging trends that will aid in sustainable mobility. This will help in identifying the best pract ices and help standardise technologies for the future.

At the valedictory session, the Chairman, Organising Committee, APAC 16 and CEO, Automotive Infotronics, Aravind S Bharadwaj said,

The delegates present at the conference

One of the stalls displaying interesting innovations at APAC 16

ing the same period. This, according to Robertson is due to increase in wealth and soaring global population. Share of vehicle production in India will increase from nine percent to 13 percent during the period. He also viewed that unconventional technologies will exceed 40 percent of the new vehicle sales by 2035.

According to the CEO of SAE International, David Schutt, the global automotive industry faces a new

“Sustainable technologies are poised to make an impact in the automotive industry and mobility network in the country.

APAC 16 has provided the opportunity for various stakeholders to come under one roof and chalk out a plan for the future direction of the automotive industry. The event has provided a platform for the Indian automotive industry to be aligned with international standards and collaborate on innovative technologies.”

NOVEMBER 2011 AFTERMARKET

21

NEWS

Toyota launches free checks across India

Hyder Ali, COO Garware Motors

Our Bureau

TOYOTA Kirloskar Motor (TKM) recently launched its fest ive campaign ‘Q Celebrations’—a service campaign with free check ups for all Toyota models across its dealerships in India.

The month-long campaign will be conducted across Toyota dealerships between 10 October and 10 November, 2011. Toyota has launched this service campaign in 125 dealerships across India, wherein, all Toyota customers visiting Toyota dealerships during the period will be eligible for a free 20-point check, which will ensure road worthiness of

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AFTERMARKET NOVEMBER 2011

Under this campaign, all Toyota customers visiting Toyota Dealerships during campaign period will be eligible for a free 20 point check, which will ensure road worthiness of the vehicle & trouble free journey for Toyota customers the vehicle and a trouble free journey for Toyota customers.

Speaking on the occasion Deputy Managing Director, TKM, Sandeep

Singh said, “Based on Toyota’s ‘Customer First ’ approach, we are very happy to offer our customers more reasons to be happy this fest ive season.

We have timed this service campaign to correspond with the fest ive season in India.”

The customers will also be able to avail custom made offers, which include impressive discounts on accessories, body and paint repair discounts, insurance renewal offers, pre paid maintenance offer and service discounts. Apart from all of these, there will be a daily lucky draw for the chauffeurs visiting the dealership during this campaign.

NEWS

MRF looks at overseas acquisition

Our Bureau

THE home-grown tyre manufact urer MRF is opening its eighth plant in Tamil Nadu at an investment of around `800 crore. The maker is also looking to acquire plants overseas, preferably in some rubber producing countries.

The new plant in Tamil Nadu is expected to st art operations early next year. It is likely to help MRF generate 15 percent increase to its yearly sales.

However, in terms of overseas leap the company would preferably look at acquisitions abroad rather than taking

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AFTERMARKET NOVEMBER 2011

the usual organic growth path. The tyre maker, which crossed `10,000 crore sales in the financial year ending this September (FY Oct 2010-Sept 2011) says the current fiscal is likely to see lower profit margin due to the rising raw material prices.

The company has earmarked a capex plan of around `900-1,000 crore, out of which, `800 crore would be spent on the new plant in Trichy.

At present, the company has seven plants across the country.

The tyre maker recently launched a new series of high performance, tubeless radial tyres—MRF zlo series,

which can be fitted on more than 35 models of both domest ic and imported cars running on Indian roads.

MRF zlo tyres are made of advanced polymer compound with st able ring const ruct ion to enhance customers’ confidence at high speeds. All these features add to optimum grip in both wet and dry conditions. These tyres are meant for premium vehicles like Audi Q7 and BMW X5. Th e price of the tyre goes upto `20,000 per unit.

These tyres will be initially available in select MRF outlets including the premium MRF Tyres & Service franchisees across the country.

NEWS

Comet, Aquila to get service support from Garware Motors Our Bureau

GARWARE Motors is looking to offer support to owners of Kinetic Aquila and Comet in a bid to earn goodwill and revive the Hyosung brand name in the Indian market.

As per the company’s est imates, there are around 1,000 odd customers of the erst while motorcycle “We are communicating with the exist ing customer base of these two motorcycle brands for service and spares support through our channel. Th is initiative is aimed at revising Hyosung’s brand image in India that took a beating with abrupt withdrawal of the bikes from Indian market in the middle of the last decade,” said Chief Operating Officer, Garware Motors, Hyder Ali Khan, who was part of the team that launched the Comet from Kinetic Engineering’ stable around 2004. He added that even though the Kinetic customers could not be given any ‘belated’ warranties regarding spares, the company is looking to offer support and assistance to such customers as it is now in a position to do so.

“Around 80-85 percent of parts and aggregates in the Comet and Aquila are identical to the current generation of 250 cc motorcycles from our technical partner S&T Motors and hence, we are in a position to offer our support for these bikes. We have been communicating with owners of these two models through our dealers as well as on consumer websites like Team BHP for offering support,” elaborated Khan. Garware Motors is gearing up to launch three variants of 250 cc motor-

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AFTERMARKET NOVEMBER 2011

from the Hyosung Motor’s stable as part of a technical collaboration between Kinetic and Hyosung drawn up around 2003. The bikes were launched in the price range of `1.5 to 1.75 lakh.

The Hyosung branded bikes were developed using the latest technology inspired from motorsports including engine built using roller bearing camshafts, chain-driven DOHC valve gear operating on four valves per cylinder head, dual squish combust ion chambers for optimum volumetric efficiency and twin Hyder Ali, COO, Garware Motors down draught Mikuni CV carburettors. The bikes were sold in Around 80-85 percent of all major cities with 500 units of each model imported from Korea as CBUs. parts and aggregates in the Financial mismanagement and the Comet & Aquila are identishrinking market eventually led to cal to the current generation Kinetic’s motorcycle business being of 250 cc motorcycles from sold to Mahindra & Mahindra, providour technical partner S&T ing the latter with a launching pad in Motors and hence, we are in the two-wheeler business around 2008. a position to offer our supMeanwhile, South Korea’s Hyosung port for these bikes Motors itself was acquired by S&T Motors to help the former stave off cycles from Hyosung’s stable in India bankruptcy and revive the brand in by the end of current fiscal. the global market. Currently, Hyosung It may be recalled that the erst while branded bikes, sold by S&T Motors, Pune-based two-wheeler manufact urhold around seven percent global marer, Kinetic Engineering had launched ketshare in 250 cc and 650 cc segments the Comet 250 and the Aquila 250 in around 20 countries globally.

NEWS

SKF provides solutions for Indian grand prix Our Bureau

SKF has partnered with Scuderia Ferrari to provide components comprising bearings and seals to reduce friction, weight and improve overall efficiency of Ferrari F150th Italia at the first ever Formula 1 race in India at the Buddh International circuit that was held recently.

The modern Formula One cars often set the indust ry benchmark through constant innovation and experimentation in machinery and technology. In addition, each F1 track has a unique layout and provides a different set of challenges for the cars to handle high speed cornering and st raights. SKF’s Racing Unit supports Scuderia Ferrari F1 cars to address these challenges with around 150 critical components in bearings and seals for engines, gearboxes, wheels and suspensions to increase efficiency, reduce frict ion, weight and manage power density, which optimises the bearing performance through maximising fatigue performance.

SKF’s dedicated Racing Unit has enabled Scuderia Ferrari to endure technically demanding challenges by providing a range of solutions—ceramic balls and rollers to reduce car’s weight, increase stiffness and sustain the temperature as high as 200 degree

A range of SKF solutions

Celsius; NoWear coatings to enable car in sliding friction by 80 percent as compared to conventional un-coated steel, needle roller bearings with a coating that can sustain high temperatures with a reduced flow of oil and bearing beacons and a computer-based bearing simulation tool to check the risk of

development of new components.

The company has recently launched a new seal range for large size bearings in wind turbine drive trains, at the Power Transmission and Control exhibition in Shanghai. In addition, SKF also displayed a range of machined sealing solutions.

NOVEMBER 2011 AFTERMARKET

27

SPECIAL REPORT

Shriram kicks off

Automall in Mumbai UG Revankar, Deputy MD, Shriram Transport Finance Company lighting the lamp at the inauguration

Our Bureau

SHRIRAM Transport Finance Company launched its fourth branded used vehicle outlet ‘Shriram Automall’ in Panvel, near Mumbai.

The facility spread across two lakh sq ft provides a platform for trading used or pre-owned trucks to the country’s large community of truck-owners.

Apart from trading pre-owned trucks, the truck-operators/owners will also be able to explore financing and insurance options as well as minor and major repair facilities. The company has launched its fourth Automall at Panvel near Mumbai, over the weekend. It already has three such centres operational in NCR, Baroda and Chennai.

The facility houses Shriram OneStop, a computerised touchscreen kiosk, which will be a virtual truck market, providing real time information about used commercial vehicles available for sale and simultaneously facilitates regist ration of individual buyer’s requirements.

‘Shriram New Look’, a part of the automall, provides refurbished pre-owned commercial vehicles with fi nancing options to customers. The

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AFTERMARKET NOVEMBER 2011

company acquires vehicles (not older than seven years) and sells them after refurbishing them for commercial usage.

The overall plan is to have 50 such st rategically located facilities on important highways and logist ics centres/ intersect ions across the country. The company plans to open two more similar automalls in Hyderabad and Jaipur by the end of this fiscal and is eyeing around `30 crore revenue from the initiative by FY12. It is planning to open 50 automalls by 2013 with an investment of around `100 crore.

“Automall will benefit truckers in promptly replacing their vehicles, leading to modernisation of the country’s trucking fleet. Th is is the first Automall in Maharashtra and we hope that it brings progress and ease in the life of the truckers” said Deputy Managing Director, Shriram Transport Finance Company, UG Revankar. He added that the company is anticipating major opportunities to unfold with pick-up in used-vehicle auct ions and refurbishment business. The company procures the truck to refurbish and subsequently sells the truck as a pre-owned asset to buyers.

Shriram Transport Finance company is the fl agship company of the Shriram group, which has a major presence in consumer fi nance, life insurance, general insurance, stock broking and dist ribution business. Incorporated in 1979, Shriram Transport is the largest asset fi nancing NBFC in the country and fi nance provider for the commercial vehicle indust ry and seeks to partner small truck owners. It has nationwide presence spanning 494 branch offices. Based in Mumbai, it manages assets over `37,000 crore and has a customer base exceeding eight lakh. It has helped replace nearly 20 lakh trucks by providing affordable acquisition credit to the small truck operators over the last three decades.

The company is expect ing to grow its incremental disbursement or vehicle loan book by around 10 percent this fiscal from around `18,000 crore in the last fiscal. The key focus for the company would continue to be commercial vehicle fi nancing, though it is looking to have a major presence in the farm equipment and const ruct ion equipment segment.

NEWS

Logica offers real time vehicle tracking system Our Bureau

LOGICA recently launched ‘Logica Meg’—a solution that enables safe school transportation. The system has completed successful pilots with a few schools in Bangalore.

Logica Meg enables numerous business models and value-added services to be built around it with applications by educational institutes, corporate offices, private passenger fleet or public transportation.

The new launch is targeted for schools—school authorities, transport providers and parents. School authorities gain visibility and control over the school transportation, transport providers improve operational efficiencies and parents gain awareness of their children’s whereabouts.

The system is powered by an onboard GPS based device. The device, which is fitted in the school bus, keeps transferring real-time location details to the Logica Meg application.

In addition to this data, the device also monitors driver behaviour. The Logica Meg application processes this information and displays it on a web interface.

It includes a single view dashboard of the entire school bus fleet, real time live tracking of each and every school bus, proximity alerts for parents, ondemand location request by parents and rule-based alerts in case of deviations such as—over speeding, route deviation detailed audit trails and advanced analytics.

The solution is provided on an SaaS model, making it all the more cost

School authorities gain visibility and control over school transportation, transport providers improve operational efficiencies & parents gain awareness of their children’s whereabouts effect ive and convenient to use. It enables numerous business models and value-added services to be built around it for improved intimacy and loyalty— whether they are educational institutes, corporate offices, private passenger fleet or public transportation.

“It not only addresses the needs of the school authorities for enhancing safety in school buses, but also provides visibility

& control over transportation, leading to operational efficiencies. At the same time, it empowers the parents by providing on-demand location and proximity alerts. The same solution can be extended further to address other market opportunities like office transportation and public transportation,” said Head of Innovation, Logica India, Rakesh Aerath.

Logica is a business and technology service company, employing 41,000 people globally.

It provides business consulting, systems integration and outsourcing to clients around the world, including many of Europe’s largest business.

It is listed on both the London Stock Exchange and Euronext (Amsterdam) and domiciled in the UK.

NOVEMBER 2011 AFTERMARKET

29

COVER STORY

The

Retail Effect Abhishek Parekh

IMITATION is the sincerest form of flattery. If one has to witness this phrase literally playing out, one need not look beyond the automotive aftermarket.

When Maruti began appointing distributors for MGP (Maruti Genuine Parts), the company certified spare parts brand name—outside its car dealership network in around 2006, few competitors took note. However, five years down the line, the initiative has not only been a success but has led to fellow car makers following in Maruti’s footsteps.

Even as Maruti has been expanding its MGP distributor’s network and increasing its retail presence, Tata

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AFTERMARKET NOVEMBER 2011

Motors (TML) has also stepped up its offensive by launching its branded spares in the aftermarket.

Even as its customers are coerced into visiting authorised service stations, TML has already kicked off its distribution network for company certified ‘genuine’ spares—‘Tata Original Parts’ (TOP) for its passenger vehicles a few months ago. Hyundai Motor too has begun relaxing restrictions on its genuine spares available from its authorised service network in the aftermarket, according to spares dealers. It may be a matter of time before the Korean car maker goes the whole hog in organised distribution of the company certified spares in the aftermarket.

COVER STORY

With more than 50 percent of marketshare in the passenger car segment, Maruti Suzuki can ill afford binding customers to its service network for spares and service. MGP has stood out as one of the most visible and first-ofits-kind OEM driven initiatives for spares dist ribution in the aftermarket.

The company has now upped the ante and has been act ively setting up a retail network to sell MGP branded spares through its exist ing MGP dist ributors and other exclusive spare parts dealers in major markets.

“We want to ensure availability of genuine parts to all the customers close to their residences. Given our concern about the performance of the vehicle and the safety of passengers in it, we have focused on usage of genuine parts and made them available in the aftermarket,” said Executive Officer (SPD, SND and Logistics), Maruti Suzuki, RS Kalsi.

There are around 10 million Maruti cars on the road currently, according to the company’s est imates, making the task of delivering quality service and genuine spares logist ically difficult, if such spares and services are rest ricted to authorised channels alone.

The company currently has more than 1,140 dealer workshops and over 1,800 MASSs (Maruti Authorised Service Station) providing services and spares support across the country.

Apart from these authorised workshops, the company has also identified over 23,000 workshops/garages, which are frequently approached by customers.

These garages are provided complete support through periodic or need-based availability of MGP through company appointed dist ributors.

The company has also been operating a ‘hub and spoke’ distribution system through which, MGP is made available in the aftermarket through a network of exclusive distributors and retail outlets.

Still in its early phase, the aftermarket

network already spans over 77 distributors and 100 retail outlets across the country. Most of the retail outlets are owned and operated by MGP distributors. A regular ‘milk run’ is carried out by the concerned MGP distributor on daily or weekly basis, depending on market demand, to supply spares to the exclusive and non-exclusive dealers.

“Our network helps provide MGP conveniently to the customers. He/ she should not be tempted to buy nongenuine and spurious parts that can sabotage vehicle performance and the driving experience,” according to Kalsi.

The company has notched up a growth of around 34 percent, in value terms, in the spares and service business, according to the company spokesperson.

Though the company refused to divulge the revenues from MGP sales, it notched up revenues of around `2,413.3 crore from spare parts, dies and moulds last fiscal (2010-11). It is expect ing to grow in double digits in the current fiscal as well.

“While we prefer that the customers bring their cars for service to the Maruti Suzuki network, our network also caters to customers who may prefer

MGP retail store in Andheri, Mumbai

NOVEMBER 2011 AFTERMARKET

31

COVER STORY

Spare part racks

MGP delivery van ready to roll on

to get their cars serviced from outside Maruti Suzuki’s dealer and MASS network,” added Kalsi. The network is continually expanding and is upgraded to ensure easy availability of MGP to customers and offer a dist inct ively personalised buying experience.

“Few customers go to authorised service network after the expiry of the warranty period. It is in the manufacturers’ interest to make their certified genuine spares available to customers in the aftermarket,” said Vice PresidentAftermarket, Anand Automotive Systems, Sachin Puri in an earlier interaction with Aftermarket.

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AFTERMARKET NOVEMBER 2011

As per industry estimates, auto spare parts market is around `24,000 crore per annum of which, fake parts would be around 35-40 percent. “We need to work together with our network and take initiatives that ensure that the customer can access spares and are aware about genuine parts and can procure them with convenience and ease,” added Kalsi. He further said that initiatives like expanding the distribution network and educating customers against spurious spares will help reinforce with the customers that non-genuine parts jeopardises safety and performance of the vehicle.

Even as Maruti has stepped on the

gas and is looking to meet demand for spares through authorised as well as unorganised channels, the spare dealers appear to be unhappy with the company’s overdrive mode. They point out that with MGP made available to local garages on a more favourable terms coupled with setting up of retail outlets, the company appears to be pushing out the spares dealers from the supply chain. Some are even moving away from selling MGP parts.

“Credibility of an MGP dist ributors/retailer is much higher than ours,” admitted Shammi Thapar of Laxman Automobiles, a Mumbai-based spares dealer. He added that the attraction of selling MGP on exclusive basis may wane with competitors like Hyundai and Tata Motors also looking at deeper penetration in the aftermarket.

Currently, Hyundai is dist ributing spares through its automobile dealers with up to eight percent discount available to the spare parts dealers on the MRP. Market sources add that the Korean car maker may be looking to appoint exclusive distributors with or without the right to sell Hyundai branded spares in the retail market depending on the ongoing experience in the aftermarket.

Tata Motors, for its part, has appointed exclusive and non-exclusive dist ributors for ‘TOP’. It is looking to set up exclusive stores in addition to enrolling more spares dealers.

“Customers would prefer to buy OEM certified spares if these are easily available,” said a Mumbai-based auto spares dist ributor.

Though commercial vehicle and two-wheeler manufact urers have always been receptive to the idea of wider distribution of spares in the aftermarket, passenger car manufact urers are only now opening up to the idea. It may be a while before the customers are able to witness a retail revolution.

CUTTING EDGE

The new device will help control fuel consumption and carbon emission

Driving guidance device

to reduce carbon emission

Nabeel A Khan

EG Gas, Kolkata-based marketing and distribution company of LPG for the road transport sector and gas conversion kits has developed a carbon e-pod, which will be able to measure the efficiency of the drivers in terms of fuel efficiency and emission of CO2. The e-pod will also provide guidance to the driver to maintain the highest level of fuel efficiency and cut on the pollution levels by employing ideal speed and handling of the vehicle. The company is waiting for the patent of the product in a couple of months.

The device will be able to measure every movement of the vehicle with the help of sensors fi xed just above the wheels and will not depend on the ECU. The e-pod will be mounted on the dashboard like a navigation device.

The device will also be connected with onboard computer, which will be based on the specific set of vehicles. What’s

more, the e-pod will have a GPRS system that will enable it to suggest the ideal route to reach the destination in real time.

“The device will caution the driver through voice inst ruct ion like the navigation devices do; it will warn the driver if any inappropriate way of driving is taken up that will increase the emission of carbon or consumption of fuel,” CEO, Kailash Mishra, said during a presentation at a technology show in the capital recently.

The device will also have ribbon-like display unit where the details of the efficient driving will appear like, the savings made by the user or the emission level reduced.

The company plans to launch the e-pod in the southern part of the country first and will target the bus, taxi fleet owners and regulators to sell the products. Looking at the fact that most of the fleet drivers don’t understand English, the company will have

all the inst ruct ions in south Indian regional languages like—Telugu and Malayalam.

At present, EG Gas is marketing and distributing LPG for the road transport sector and gas conversion kits in Eastern and Northeast India. It is setting up EG gas energy stations at prime locations, both in state capitals and Tier II and Tier III cities in this region.

The company currently has four market products, which include standalone AutoLPG energy stations, conversion kits facilities (to retrofit all types of vehicles to LPG from the forecourt, monitor the CO2 emissions from vehicles to claim carbon credits), non-fuel retail services like ATMs and convenience stores.

The company offers converters for the exist ing four-st roke motorcycles, autorickshaws or cars to run on LPG by installing an Auto LPG Conversion Kit into a vehicle. EG Gas offers conversion kits from both local and internationally approved suppliers.

NOVEMBER 2011 AFTERMARKET

33

IN CONVERSATION

“The government should not curb growth” Managing Director, Rico Auto Industries, Arvind Kapur, has taken over recently as the President of Automotive Component Manufacturers’ Association (ACMA), the apex body of the auto component manufacturers in India.

He sees that developing Tier II and Tier III companies are vital for the growth and development of not only the component industry, but also OEMs. He spoke to T Murrali on his agenda and plans to take the auto component industry to the next level.

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AFTERMARKET NOVEMBER 2011

IN CONVERSATION

Can you tell us your agenda for the component indust ry?

The primary agenda is to see the auto component industry do well.

There are some blips now due to fuel price increase, inflation and hardening of interest rates. These issues are going on and we are trying to see how to tackle them.

What are the issues that you see in the immediate future?

Due to petrol price increase, a major change has happened in the percentage of petrol vehicle sales. Earlier, about 70 percent of the cars sold were petrol, but now it has reversed. At the moment, diesel engines are not available to meet the demand and this is the challenge that the auto industry is facing and auto component industry will have to support it.

What about two-wheelers?

Two-wheeler segment is not showing recession. From about 13 million units reported last year, it is expected to grow to around 20 to 22 million by 2020. Thus, the growth of the auto component industry has to keep pace. While the Tier Is do have challenges of investments, the bigger challenges are with Tier IIs and Tier IIIs. And if they do not come up to the mark and make similar investments, success will not be there. I think the challenge for us is to take Tier IIs and Tier IIIs along.

What are the other challenges you perceive?

The other challenge is that OEMs are setting up plants in multiple locations and they want the Tier I companies to follow suit. However, the issue for Tier I companies is to take Tier II and Tier III along with them so that the whole chain is st rengthened. Some of the OEMs are not only doubling up capacity, but the

exports are also going up; therefore it is necessary to triple the capacity.

The auto component indust ry will be three to three-and-a-half times in 2020 than what it is today. And the car indust ry will be number two or three in the world by then. And the OEMs can produce cars only if the component indust ry matches the demand.

What about concerns like manpower availability and technology?

Yes, manpower availability is an issue; managerial depth is also an issue. We have been discussing about what we should do and what direction to take.

With respect to technology, currently the Indian component industry largely follows the build to print model. The next step is to get into research and development mode to develop new products. We have identified it as RTD—Research, Technology and Development. The Indian companies are good at development but it’s a long way to go in terms of technology. We would like to leave the basic research to the institutions, while we have to master technology. Once it is done, we need to take it to the next level.

What is the roadmap for upgrading technology?

We are regarded as frugal manufacturing companies; frugal engineering is the strength of the component industry in India.

We need to set up an R&D base and prove that affordable research and development is possible. This is one of the initiatives that we are encouraging our members to pursue.

ACMA Centre for Technology has already set up an engineering cluster; we are initiating another cluster for new product development.

What initiatives do you plan for Tier IIs and Tier IIIs? We are working on the modalities on how we can support them.

About three decades ago, Maruti came in to the country to make cars while Hero Honda came in to make motorcycles. That is the time when the OEMs held the hands of Tier I companies. Now the Tier Is will have to hold Tier IIs and Tier III companies and bring them to a level and that is the cycle that we have already started. We are not only supporting them as far as technology is concerned but also handholding them to manage the skills, training people and even fi nance.

The auto indust ry in India and all over the world is experiencing a gloomy atmosphere due to recessionary trend. How do you view this situation and prepare the component indust ry?

If you look at the 2008-09 collapse that took place in the US, we in India bounced backed within two months or so. Th is is primarily because we are driven by the domest ic economy. It did not pertain only to automotive but also every segment including white goods.

Even now, there are some worries in the short term; but we will be 5.5 million car indust ry by 2015. There will be ups and downs but its all fi ne in the long term.

What according to you can be the role played by the government to encourage the auto component indust ry?

The government should not curb growth. The interest rates have become a major cause of worry for us—we need to fi nd a solution for cheaper sources of funds. We keep on interact ing with the government. Hopefully something good should happen.

NOVEMBER 2011 AFTERMARKET

35

IN CONVERSATION

“Integrating CRM into social media will increase customer size”

Like any other industry, information technology and software have been playing a crucial role in the automobile aftersales as well. SAP (System Analysis and Products in data processing) India has brought a number of features to help in supply chain management and enhance customer satisfaction through efficient servicing. With social networking media like Facebook and Twitter gaining importance as sales and marketing tools, they have been integrated into a software launched by SAP. The software maps customers’ responses and post the same into the SAP CRM system thus helps the automobile dealers access consolidated information. Head, Strategic Solution, SAP India, Neeraj Athalye, speaks to Nabeel A Khan in an interview.

What is the current market size for software in the automotive space and what kind of position do you want to acquire?

IT software is playing a major role in the growth of the Indian automotive indust ry and SAP holds a prominent

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AFTERMARKET NOVEMBER 2011

share in this market. SAP has presence in some of the major automotive companies in India. We have our solution footprints in Carnation, Hyundai Motors, TVS Motor, Hero Motors, Ashok Leyland, Bajaj Auto and Aditya Auto Products among others.

IN CONVERSATION

customer by decreasing service costs through greater efficiency, and increasing service revenue. With SAP CRM, automotive customers can provide service professionals with the information and tools they need to effectively and profitably plan, execute, and analyse service processes. This helps to track service contract entitlements, to eliminate service leakage and achieve service-level performance metrics. It equips agents with the tools they need to resolve customer issues on the first contact, boosting customer satisfaction. The application supports field service professionals for quick and effective resolution of problems in remote locations and provides 24x7 self-service for online customer support at a fraction of the price of regular phone support. With the application’s service analytics and SAP BusinessObjects’ Business Intelligence (BI) solutions, automotive customers can make smart business decisions.

What is the potential of CRM in the Indian automobile market?

SAP currently offers two software solutions—SAP CRM (Customer Relationship Management) and SAP DBM (Dealer Business Management).

We are at present witnessing phenomenal growth in the sales of both of the solutions. The future of CRM in the Indian automotive market seems extremely buoyant. We are committed to India and the Indian automotive market.

How has SAP helped automotive companies and dealers to serve the end consumer better?

SAP maximises the value for each

What is your st rategy of expanding the reach of CRM in the country?

Seeing the tremendous growth potential of small companies becoming big very soon, SAP has launched RDS (Rapid Deployment Solution) for CRM and Business Communication Management (BCM), which can get deployed within a period of six weeks and hence help st rengthen the sales, marketing, service and call centre business of various automotive companies.

Is there any special focus on maintaining supply chain?

With SAP automotive solutions like supply chain management, manufact uring and customer relationship management, the automotive customer can control profit drivers, tightly link st rategic plans to operational performance and enable a single analytical platform for your business. Analytic tools enable them to define financial

targets, develop realist ic business plans, and monitor costs and revenue during execution. From a single source, automotive customers can identify which products, technologies, customers and processes will drive top-line growth and bottom-line earnings.

SAP has launched excellent low cost fast speed rapid deployment solutions in CRM and software-based call centres—this shall lower the total cost of ownership of the OEMs and help them grow faster.

What is the relevance of software in vehicle sales management?

With effect ive vehicle sales management and delivery using SAP CRM, coupled with sales force automation using mobile sales solution and high end analytics—SAP CRM empowers the sales personnel as the 21st century sales warrior—who is always agile, mobile and is empowered with analytics to make the right decision.

With SAP CRM, marketing and lead management, leakage of leads (primary information about a customer) is drast ically reduced thus increasing the sales and increasing the overall revenue. Also, the end customer is left satisfied, which is crucial for the company as well.

Is there any way to develop integration between dealers and OEMs? Most dealers in India have their own home grown local systems or sometimes no systems at all. Th is creates a huge disconnect between what the parent automotive companies want to deliver to their end customers and what finally happens at the dealership level.

With SAP, dealer business management system is integrated with SAP customer relationship management, the integration unites the parent company and all its dealers into one single entity.

There is a unified holist ic experience

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IN CONVERSATION

for the end consumer—thus resulting in the ultimate customer satisfaction— hence more sales for the dealers and in turn for the parent organisation.

Can SAP help dealers retain their exist ing customers?

The best mantra to retain existing customers is to keep them happy by providing them with excellent aftersales service. However, it’s easier said than done. To reach the truth of customer delight—the automotive companies will have to automate and st reamline their service/ dealer centres.

Also, all the other channels like websites, SMSes and call centres through which, an exist ing customer can reach out to the company has to be integrated and synchronised. SAP CRM and SAP Business Communications Management (BCM) helps the automotive companies to deliver exceptional aftersales service, which helps them to retain more customers.

Social networking sites are emerging and playing a vital role in business.

Does your software help in this way?

According to a recent news release, 40 million Indians are using online reviews to make their purchase decisions. We at SAP, had already predicted the same much earlier. Today, any sales and marketing person cannot ignore the growing might of Facebook and Twitter. Thus SAP has launched some excellent software that integrates Facebook, Twitter and other such social networking media, which maps customer responses and posts into the SAP CRM system and then helps the automotive clients to reach out to the customer using the same medium of social networking. In the paint industry, we already have Asian Paints in India doing the same.

What do you offer for the multi-brand

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service providers? Who are your current clients?

Multi-brand service providers need effect ive CRM and DBM systems to cater to various kinds of customers—both key corporate accounts and retail consumers. One of our clients is Carnation—a branded, nationwide network of customer-oriented service centres offering high-quality maintenance, repairs, and parts for all makes and models. To help roll out this network—and to leverage the data needed to provide outstanding customer service, Carnation has deployed the SAP DBM and CRM. They are using these two powerful solutions to fuel their rapid expansion plans.

Quick Look z

SAP India is the subsidiary of SAP AG, based in Walldorf, Germany and a provider of business software solutions globally

z

Established in 1996

z

Headquarters in Bangalore and offices in Mumbai, New Delhi, Kolkata, and has marketing associates in Sri Lanka and Bangladesh

z

SAP India has a st rong network of 200+ partners for its different solutions and verticals across geographies

How do dealers with the help of software, optimise business across the dist ribution network of vehicles and parts?

Configured for automotive companies, SAP solution helps them st reamline and automate processes for demand and order scheduling.

Specifically, they can integrate key processes similar to those used to manage finances, purchasing, and product ion. As a result, they can process forecast delivery schedules and use the forecasts as the basis for their product ion planning. The sales team

can quickly and accurately determine the order status, its pricing and check product availability. Th is helps to satisfy customer requirements more quickly and consistently, reduce inventory through increased visibility, and increase your on-time delivery rate.

As this solution provides the customer with integrated processes across the entire order-to-cash lifecycle, they have continuous document flow and support for monitoring for every step from order entry to transportation.

Dealers can master diverse logistics processes, such as just-in-time/ just-in-sequence (JIT/JIS) processing, subcontracting, and third-party order procurement. The sales team can track and manage invoices, and you can generate credit memos for retroact ive price changes when act ual material prices differ from previously contracted prices. The solution helps you reduce order lead time, lower administ ration costs, and improve logist ics through real-time transact ion processing.

How does the dealer increase customer satisfact ion to ensure brand loyalty?

Brand and dealer loyalty can only exist if the end consumer gets uniform experience with every touch-point of the brand—everywhere and everytime. So if a customer calls up the call centre, walks into a dealer showroom, visits the website or meets a sales agent—the company should capture all of these interact ions and feed them into a single central system. We at SAP call it the single source of truth and this can only happen when all the solutions at the back-end and at the front-end are not just meagre home grown solution but part of one single integrated family of Business Solution.

Th is is what SAP has provided for the automotive indust ry—one single source of truth and one single integrated business solution value chain.

SPECIAL REARVIEW REPORT

BEA exhaust gas and diagnost ic module

Bosch launches next-gen exhaust analyser, diagnostic station Our Bureau

BOSCH recently launched its new PC-controlled generation of BEA exhaust gas and diagnost ic stations.

Based on a modular device concept, the diagnost ic station encompasses single test ing modules to mobile devices for test organisations to complete exhaust gas analysis stations thereby covering a variety of workshop requirements.

The system can be extended to be a test line or be combined with the Bosch Vehicle System Analysis (FSA). The BEA exhaust gas testing system can be used to perform the statutory exhaust gas analysis for gasoline, diesel and gas engines. The new BEA devices have the advantage of being easier and more convenient to use, which is why it is quicker to perform exhaust gas analyses using the largely automated test sequence with optimised testing procedure.

The BEA 950 is the top model among the new Bosch exhaust gas analysers,

which provide comprehensive exhaust gas analyses of gasoline and diesel engines.

The individual system components as well as PC, monitor, keyboard and printer are housed in a robust device cart.

The BEA 055 4/5 gas test ing module forms the heart of the gasoline engine test ing system; its gas detectors measure CO, CO2, HC and O2 as well as NOx (optional) to the high degree of accuracy in line with OIML Class 0.

The BEA 070 opacimeter is on hand to test the opacity of smoke coming from diesel engines. Having this type of connect ion facilitates application with commercial vehicles and buses.

Depending on the model, the Bosch BEA 950 comes with a KTS 540 and KTS 515 with wireless module to perform On Board Diagnosis (OBD) and to measure the temperature and speed. Alternatively, the temperature and speed can be measured using the new BEA 030, which is housed in the handy KTS 5xx housing and also

equipped with wireless data transmission. Furthermore, the BEA 950 features the BDM 300 speed module, therefore providing it with all key opportunities to record speed.

Bosch’s Automotive Aftermarket division (AA) provides the aftermarket and repair shops worldwide with a complete range of diagnostic equipment and a wide range of spare parts for passenger cars and commercial vehicles.

In its ‘Diagnost ics’ operations, AA supplies test ing and repair-shop technology, diagnostic software, service training and information services. In addition, the division is responsible for the ‘Bosch Car Service’ repair-shop franchise with some 15,000 franchises.

In addition, AA is responsible for more than 500 “AutoCrew” partners.

The Bosch Group is a leading global supplier of technology and services. The group employs around 285,000 associates and generated sales of Euro 47.3 billion in fiscal 2010.

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SPECIAL REPORT REARVIEW

Radical service model on Daimler’s agenda Nabeel A Khan

GEARED to break traditions, Daimler India Commercial Vehicles (DICV) is set to change the way the market perceives the importance of a wide network of service support to being the key to success. The German CV manufact urer plans to bring out a paradigm shift in the way of doing business of heavy commercial vehicles in India. It hopes to offer robust vehicles that would have fewer service requirements. Another radical change that the German automaker is bringing

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AFTERMARKET NOVEMBER OCTOBER 2011 2011

about is the use of information technology for the shopfloor workers to reduce their dependency on supervisors.

“We will break the paradigm created by exist ing players that a huge network of the service stations is required for the success of the business. They have a deeper penetration in the country, but our st rength will be completely different. Our vehicles will be produced in such a manner that it would not require to be serviced before one lakh kilometres of running,” said Vice President, Marketing, Sales & Aftersales, DICV, VRV Sriprasad.

The vehicle maker is set to challenge the conventional wisdom and bring about a paradigm shift in commercial vehicle space. DICV would be introducing the next generation trucks designed by the Indian engineers and for the Indian market at competitive prices within a year, to challenge the near duopolist ic character of Indian commercial vehicle indust ry. The company has been test ing its vehicle for over one lakh km and still going to check the life of the vehicle on its own test tracks. However, the price will not be very far below as it could dilute the

REARVIEW

Image for representation purpose only

VRV Sriprasad, VP, Marketing, Sales & Aftersales

brand image.

DICV attributes the move to the radical changes that are sweeping the Indian market—the way people communicate, travel, work or spend their leisure time. The changing preferences

and lifest yles as well as ever increasing expectations of the customers are driving the vehicle technologies and service standards to the next level. Superior products are necessary but will not be a sufficient for brand differentiation.

Consumer experience will play a bigger role as product differentiation will cease.

Sriprasad emphasised that the dealerships’ pattern is set to change as they face the increasingly demanding OEMs and the customers. The company will not just be focusing on selling the vehicle, but would like to develop a participating relationship with the customers in the complete life cycle of the product. Looking at the crucial role of the manpower and lean manufact uring,

the company is adopting a closer focus on the use of information technology for the shopfloor workers. It has developed a set of touchscreen inst ruct ions, with 3D visuals, guiding the workers to take up assignments that help reduce or even eliminate the requirement of any supervisors. The inst ruct ion on this screen is completely pictorial and hence can be handled by all classes or sect ions of workers on the shopfloor regardless of literacy or expertise levels.

DICV has planned a total investment of `4,400 crore over the next fi ve years. The company will manufact ure light, medium and heavy duty trucks at its 400-acre facility in Oragadam, near Chennai.

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SPECIAL REPORT

Wabco

banks on training to grow its aftermarket business

T Murrali

LEADING supplier of safety and control systems for commercial vehicles, Wabco is ready with ABS for the aftermarket and it will gear up its plans once the safety feature becomes mandatory in India, according to the Vice President (Business Leader,

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AFTERMARKET NOVEMBER 2011

Trailer Systems) Aftermarket, of Wabco Europe BVBA-SPRL, Nick Rens. “For us it is a little bit of a proact ive approach. Our mission is to train and educate people before ABS becomes mandatory,” he said.

Training is typically done on two ways—globally as well as locally. The company will depute experts from

SPECIAL REPORT

Wabco University to India to train people in specialised training centres equipped with several diagnost ics tools. It will also impart training at its customers’ place, he said.

The $2.2 billion Wabco has three plants in India and 15 across the rest of the world. Est ablished in 1962 as Sundaram Clayton, the joint venture

between TVS and Clayton Devandre to manufact ure braking syst ems, the company was de-merged into WabcoTVS (India) in 2008. Wabco picked up majority ownership in the following year.

Rens observed that currently India may not have more number of trailers but the situation can significantly

change in the next ten years, eventually creating more demand for several safety critical components and systems, including ABS. “I have visited a few organised trailer manufact urers and found that they follow several syst ems including EU regulations,” he said. Currently, majority of the trailers are manufact ured by the unroganised sector.

Wabco’s role will be in explaining these companies on the required braking systems, the ways and means to measure braking performance, act ion and others.

“We help the manufact urers to make sure that the braking systems are correct ly inst alled in trailers,” he said.

Wabco’s Aftermarket network is well organised since the network has been built by TVS and subsequently

by Wabco in the last 40 years.

The independent network in India is at par with Western Europe and better organised than China, South

America and Eastern Europe, he said. “You can be successful only if you build long last ing relationship with local people. You have to think locally—you cannot build something in, say Belgium, and apply here. The secret to success is to underst and the local people and the customers and slowly grow the network; this I think, was very well done over the last 40 to 50 years in India. I am astonished to see that this network model is almost the same as in Europe; although technology of vehicle is completely different, the concept and the network are the same,” he said.

Asked about the roadmap for aftermarket in India, he said that technology in India will move to higher levels and there is going to be increased requirements for high technology systems from the Indian OEMs. The aftermarket will grow along with it.

To leverage the opportunities it is necessary to connect with people and

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SPECIAL REPORT

grow the network, he said. Currently Wabco India has 7,000 dealers and 300 authorised service centres directly operated by the company itself.

According to Whole-time Director of Wabco India, P Kanniappan, the company plans to increase the authorised service centres based on the potential and the business viability.

At present, it has one authorised service centre in every 100 km, which carries out high quality service for

trucks, for the products that are manufact ured by Wabco. Recently, Wabco India unveiled its plans to consolidate its brand under Wabco name as part of a st rategic initiative to st rengthen the company’s market position in the country. The company, a subsidiary of Wabco Holdings, manufact ures air-assisted and air-brake systems for commercial vehicles and continues to expand its technology portfolio to manufact urers of trucks, buses and

trailers.

Unveiling the new brand the Chairman and CEO of Wabco, Jacques Esculier said, “we will continue to support customers in their pursuit of vehicle safety and efficiency by offering optimal technology solutions while st riving world class service levels. We are passionate about three pillar st rategy – technology leadership, global capability and excellence.”

Jacques Esculier, Chairman and Chief Executive Officer, Wabco

Could you tell us about the new branding initiative?

The new brand is not going to modify the current positioning of Wabco India as a centre for manufact uring; it is just more on the alignment of the branding across all regions. Th is is because the company sells products manufact ured in India in other parts of the world. And we obviously want to feature our brand when we sell our products elsewhere in the world.

What would you be looking at from your India operations?

We will continue to focus on three verticals—engineering, manufact uring

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AFTERMARKET NOVEMBER 2011

and sourcing, and these verticals will be st rengthened because of the branding.

has started in China for such a complex and sophist icated product.

How do you see these three verticals change in the next five years?

In the case of engineering centre, we currently have about 300 people and we have ambitions to grow way beyond than what it is now. First ly, we do not want to dilute the exist ing knowledge resources. Also, the race for hiring talents is high, though highly talented people are available in India.

The pillar of engineering centre has a clear st rategic purpose; it is to manage and develop more traditional and conventional product s, which were done in Germany. Secondly, to adapt the technologies developed outside India to the local requirements. As the local requirements are growing bigger, we need more and more engineers since the design developed in and for a particular market can be adapted to other markets too. For inst ance, the automated-manual transmission is primarily developed for emerging markets. The project is lead by people from Germany and supported by China in terms connect ing to the market and identifying the specific requirements of customers, is supported heavily by Indians in terms of design and software. By the way, the product ionion

What is the roadmap for manufact uring in India?

While we continue to manufact ure products for this country, the latest technologies that we develop globally, will be brought to India as and when the customers require them. And these products will be manufact ured once the volumes reach certain level as our philosophy is that we have to manufact ure nearer to our customers. We are also integrating India in the network of Centre of Excellence, for some of the key products like compressors. India, for example, will support the compressor requirements of few countries including the US and Brazil. It is just a matter of optimising the network.

What is your plan for sourcing in India?

We have a set of suppliers supporting our manufact uring facilities in India.

We are currently exploring opportunities to source for our facilities outside India too. We are already doing in a small way now. Currently, 45 percent of the material sourced is outside of traditional markets, which is very significant for company like ours. Our vision is to increase it significantly.

SPECIAL REPORT

Bosch marks 125 years;

to invest Euro 50 million

(L-R) Dr Werner Plumpe, Dr Norbert Lammert, Dieter Kosslick, Franz Fehrenbach, Winfried Kretschmann and Rüdiger Safranski

BOSCH is celebrating 125 years of its existence by staging roughly 850 act ivities worldwide in 2011 to mark the 125th anniversary of the company and the 150th anniversary of the com-

pany founder’s birth. The aim was to compare present shifts in society, technology and thought, with those of the past and to draw inspiration for the future from them. The company

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SPECIAL REPORT

has marked its anniversary this year by invest ing Euro 50 million in an international university development programme.

A Berlin conference organised recently as part of the anniversary was on ‘Courage, Curiosity, And Change In Times Of Upheaval’ in the Friedrichst adt-Palast in Berlin. The subject matter of the conference traced an arc from the 19th to the 21st century. The focus of the conference was to place the connect ion between education, technological progress, and economic development in a historical context.

The event was attended by guest s from politics, business and culture.

President of Bundest ag, Norbert Lammert and Minister-President of Baden-Württemberg, Winfried Kretschmann, spoke about the challenges facing politics, business and society. Other prominent participants and speakers included philosopher Rüdiger Safranski, Chairman, German Historians’ Association, Werner Plumpe, and Chairman of the Bosch board of management, Franz Fehrenbach. Fehrenbach’s main concern is to exchange views with partners from different areas of society. Following their presentations,

The company has marked its anniversary this year by investing Euro 50 million in an international university development programme. The company was set up in Stuttgart in 1886 by Robert Bosch as a ‘Workshop for Precision Mechanics and Electrical Engineering’

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AFTERMARKET NOVEMBER 2011

Director, Berlin International Film Fest ival Dieter Kosslik, was reported to have facilitated a discussion among the speakers.

In his keynote presentation, Franz Fehrenbach outlined the major challenges of the present, while keeping an eye on the past. He described Robert Bosch as someone who upheld liberal and pan-European views at a time when Germany had severed its ties to its neighbouring countries. He felt, “More democracy and more Europe, not less.”

In his view, European unity has for far too long appeared to be a foregone conclusion, something for the elite. Now it is becoming more than clear that “what happens in one country affects every other country.”

Fehrenbach called for a return to a democratically mandated path of European development: “We have to fi ght for European unity.” Fehrenbach also saw technological changes, such as the move to renewable energy, as a source of opportunity. However, fundamental decisions such as these, which affect infrast ruct ure, call for persistence and st amina. In taking these measures, it is, he said, especially important not to neglect the issue of energy efficiency. More specifically, he called for increased subsidies for work to improve the energy efficiency of buildings. He pointed out that buildings st ill account for some 40 percent of the primary energy consumed in Germany. “Th is is one of the biggest levers for more energy efficiency and climate protect ion—a lever that must not be left unused,” he added.

The Bosch Group is a leading global supplier of technology and services.

In the areas of automotive and industrial technology, consumer goods, and building technology, some 285,000 associates generated sales of Euro 47.3 billion in fiscal 2010. For 2011, the

A Berlin conference organised recently as part of the anniversary was on ‘Courage, Curiosity, And Change In Times Of Upheaval’ in Berlin. The subject matter of the conference traced an arc from the 19th to the 21st century company forecast s sales of more than Euro 50 billion and a headcount of 300,000 by the end of the year. The Bosch Group comprises Robert Bosch and its more than 350 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. Th is worldwide development, manufact uring, and sales network is the foundation for further growth. Bosch spent Euro 3.8 billion for research and development in 2010, and applied for over 3,800 patents worldwide.

The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as a “Workshop for Precision Mechanics and Elect rical Engineering.” The special ownership st ruct ure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant upfront invest ments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Indust rietreuhand KG, an indust rial trust. The entrepreneurial ownership funct ions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

SPECIAL REPORT

Federal-Mogul’s Chennai plant to start production soon

Our Bureau

THE aftermarket is rapidly growing as the influx of new vehicles has expanded the total Indian car parc, resulting in new requirements for high quality OEM-st yle repair and maintenance parts. In order to cater to the demand from the aftermarket as well as OEMs, Federal Mogul will soon commence commercial operations at the new facility coming up in Chennai.

The global company recently announced a new manufact uring facility coming up at an investment of about $15 million, to make brake friction material. Th is is the eighth manufact uring facility for the company in India. It has manufact uring facilities in Bangalore, Bhiwadi, Parwanoo, Patiala and Radrapur.

According to President and Managing Director, Federal-Mogul Group of Companies, India, Jean de Montlaur, “The demand in India for technology is increasingly becoming sophisticated as the world’s vehicle makers are all competing for a share of this expanding market. India is a strategic market for Federal-Mogul and we have invested in the capacity and infrastructure to maintain and grow our leadership position in India and globally.”

The Chennai facility will initially produce non-asbestos organic disc brake pads for light vehicles, half block linings for commercial vehicles and brake blocks for railway and indust rial customers. The company expects to employ approximately 300 people when the facility is in full operation. “The combined Indian automotive, commercial and railway markets are expected

to grow on average by 14 percent per year over the next five years,” he said “India is one of Federal-Mogul’s st rategic bases of operations for serving the fast-growing Indian automotive market in Southeast Asia and other global markets,” said President and CEO, Federal-Mogul, José Maria Alapont. He made the statement after the official announcement of the new manufact uring facility.

Federal-Mogul, through one of its Indian subsidiaries, broke ground earlier this year on a 10-acre site for const ruct ion of the new 38,000-sq mt facility to manufact ure the company’s broad portfolio of leading-edge technology, environmentally-friendly brake frict ion materials for the OE and aftermarket segments for automotive, const ruct ion, railway and industrial customers. Product ion is scheduled to begin before the end of 2011.

“When we bring the Chennai manufact uring facility on-line later this year, Federal-Mogul will have the ability to manufact ure products in every major geographic automotive market around the world, complemented by our st rong base of regional technology and engineering centres supporting our brake frict ion customers,” Alapont said.

“Bringing the product ion of new frict ion technologies to India supports the company’s sustainable global profitable growth st rategy, which is based on delivering leading high-tech and innovative solutions for improving fuel economy, reducing emissions and enhancing vehicle safety,” Alapont added.

Federal-Mogul established joint venture operations in India in the

Jean de Montlaur, CEO, Federal-Mogul India

1950s. The company has since established several wholly owned operations and majority joint ventures in the country. The company has grown its revenue from its Indian operations to approximately $250 million and currently employs more than 6,600 employees.

Federal-Mogul’s Indian headquarters is in Delhi, and one of the company’s 18 globally-networked technical centers is in Bangalore. Together these facilities design, develop and manufact ure a broad range of vehicle powertrain components, including pistons, piston rings, engine bearings, ignition and sintered products, for both OEMs and aftermarket customers.

Federal-Mogul Corporation is a global supplier of powertrain and safety solutions to the world’s foremost OEMs of automotive, commercial, aerospace, marine vehicles; indust rial, agricultural and power generation equipment as well as the worldwide aftermarket. Founded in Detroit in 1899, the company currently employs about 45,000 people in 35 countries.

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Photographs: Nilayan Dutta

“Quick response is key to

customer satisfaction” Nabeel A Khan

SURVIVING two major downturns in his early days—fi rst one in 1998-99 and 2008—has been an enriching experience for Anil Bagaria, a first generation dealer and promoter of KB Motors, a Tata Motors dealership in Kolkata.

“If you service your customers, you will survive, whether it’s a downturn or a normal phase. If you don’t serve your customers, you might get benefits in short term but eventually you will

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AFTERMARKET NOVEMBER 2011

fail,” emphasised Bagaria. Traditionally, his family was into iron and steel business but in 1995, when he was st ill a first-year st udent in a college, his joint family started splitting. He inherited a piece of land in the central Kolkata.

Th is is what ensued into plans to set up a car dealership.

Around 1995, Daewoo came to India in collaboration with DCM and launched the Cielo, one of the early premium sedans launched in the country. Th is gave him the opportunity to start the dealership. In those days his

outlet was the fi rst to have the marbled and decorated showroom of the cars in the city. Daewoo went into bankruptcy, dealing a major blow to the likes of Bagaria but he had earned a number of valued customers based on which he continued in the business and started Tata Motors dealership in 2001.

Notably, he continued serving the Daewoo customers for over four years even after the OEM downed the shutters solely to retain the customer loyalty and ensure that they were not subjected to hard times. He sourced compo-

EXTRA MILE

ers. Although this is very challenging, we have st rived to manage it,” Bagaria opined. By-and-large, he has been able to get the attrition rate under control which is important for the successful running of the business.

Over the last decade, Bagaria has built three dealerships and one workshop at st rategic locations in Kolkata to tap the maximum possible business. Now the company is expanding towards smaller towns within the st ate.

From 1995 to 2007, the dealership was being operated from a 3,000 sq ft showroom near Park Street, but due to space const raints it started a new outlet in Alipore and another one at Park Circus. Its workshop in Kolkata is spread across 7,000 sq ft and can service over 50 vehicles a day. The company is planning to put up a new workshop in Kalyani and an outlet in Kharagpur and in few other dist ricts. The dist rict customer will not walk that extra mile to buy the cars hence it is going near to their home towns. The nature of growth in these small cities is far more impressive than that of metropolitan cities.

Giving top priority to customer service, Bagaria considers that the earliest possible response to the customers is of prime importance. The

customers’ concern should immediately be addressed while keeping in mind dealers’ limitations. Bagaria felt that success looks good only when reached after facing challenges. Today, it makes around `80-100 crore turnover annually with a profit margin of around two percent. There has been a complete transformation over the years. Earlier, it sold only what it had but now it sells what the customers want. The dealers now explain the best possible offers and product features to every individual customer.

The customer’s expectation and knowledge has increased thanks to technology and global exposure, thus the service centre also has to increase its ability to service. The dealer is preparing its people to respond to the exceeding demand of the customers through training.

Of late, it has also got the opportunity to diversify into new business like—real estate and steel. However, it is further planning to expand its automobile business in the aftermarket and sales and exploring options. At the end, “relatively, I consider my dealership a success because I have seen two downturns but, by grace of god, survived both and now we are on the expansion mode,” Bagaria concluded.

Anil Bagaria

nents from different places and even imported them to provide services to the customer. He stated that presently, he knows over 1,000 customers by their first name. He has been through numerous ups and downs over the last 15 years. There were times when he sold just a single vehicle in an entire month and during more cheerful times, he sold as many as 400 vehicles in a month.

“In order to satisfy your customers you need to satisfy your staff first ; they are your internal customers. If they are happy, you will have satisfied custom-

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AUTO POINT

Radial tyre demand is at inflection point and set to spurt in T&B category Revati Kasture Head, Industry Research, CARE Research Vishal Srivastav Deputy manager, CARE Research

RADIALISATION is yet to make inroads in the T&B tyre category with just 12-13 percent penetration in the total T&B tyre product ion, as compared to 98 percent in passenger vehicle segment. However, during last three-four years, there has been sudden jump in the demand for T&B radial tyres mainly because of improvement in road infrast ruct ure and st rict implementation of ruling given by Supreme Court in 2005 on

rest rict ing overloading. In addition to this, fleet operators have also realised the comparative advantage of radial tyres over cross-ply in terms of cost over the life of the tyre, which has boosted the demand for radial tyres in the replacement market. CARE Research est imates that the proportion of radial tyres in T&B tyre production to increase by approximately four times from current levels to around 48-50 percent by FY16.

Projected rise of T&B radial tyre production Units (in mn)

12.0 10.0

CAGR 25%

8.0 6.0 4.0

CAGR 36%

2.0 0.0 FY07

FY11

Source: CARE Research, ATMA and Indust ry Note: F: Forecasted

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FY16F

AUTO POINT

MAV can save around `1.3 per km The initial price of radial tyres is around 20-25 percent more than crossply tyres and it is feasible to retread them only twice as compared to the cross-ply tyres, which can be retreaded three times. However a Multi-Axle Vehicle (MAV) can save around `1.3 per km by switching over to the radial tyres from cross-ply tyres. Th is is mainly because the running life of a radial tyre is est imated to be around 40 percent more than a cross-ply tyre and it gives higher fuel efficiency because of lower wear and tear and higher resistance levels.

CARE Research expects the only hindrance a truck operator has in buying radial tyres is its initial price. However, the manufacturers are aggressively making attempts to educate customers about the benefits of radial tyres in terms of better fuel economy and higher running

life that ultimately benefit the truck operators. CARE Research estimates that a truck operator can break even initial cost difference between cross-ply and radial tyres at around 28,000 km of the travel, which means within five-six months of usual operating time.

EBDITA Margins Under Pressure The tyre indust ry’s top-line is expected to register a healthy growth of 15-16 percent from `24,400 crore in FY11 to around `33,200 crore in FY13, mainly driven by growth in replacement demand. However, EBDITA margins are expected to drop due to rise expected in prices of key raw material. Tyre manufact urers enjoy limited pricing flexibility due to intense competition from domestic players as well as imports, which rest rict them to fully pass on the price increase to the customers.

Challenging Time Ahead CARE Research expects the next five years to be challenging for the industry as it has to encounter change in structural as well as competitive scenario.

For instance, on one hand, the industry manufact urers have to keep pace with the rising demand for radial tyres as well as encounter the increasing competition from the domestic manufact urers as well as imports, whereas, on other hand they have to face margins pressure due to volatility in raw material prices and interest rates. Although healthy demand scenario from replacement market would help in keeping utilization levels at a decent rate, players have to be aggressive in cost cutting and enhancement in productivity in order to minimise the impact of rising operating cost on overall profitability.

(The report is prepared by CARE Research, a division of Credit Analysis & Research. Views expressed are personal.)

or Monit Auto INDIA

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40 Pages

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Global

Light Vehicle

assembly

Source:

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Reuters

and other

publicly

available

` 50

N ACTIVITY AUTOPINIO ND FOR DEAL OUTLOOK2011 AND BEYO Pg 14 : IN INDIA

outlook

2011

No. OF UCTION W TS PROD INTERVIE stone India S ONE STAR ing, Bridge AL TYRE BRIDGEST BUS RADI r, Sales & Market TRUCK,

Vol. 11

sources

for small tomatics velop au er to de BorgWarn Pg 08

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s, system ises turboemissi ons that comprsystem s, Beru Directo al TEC and lez Mori, t therm H Gonza s, Morse for 72 percen ts system s accoun while the drivesystem rest. system clutch total sales nts the of the Dual tronic n represe share of 51 train divisiothe major from tly, es come t Curren i t revenu as accoun F percen Americ T Murral while sales and IN BRIE Europe t of the Detroit NEWS t. The $6.3 uces 26 percen for 23 percen outartered for Introd 1 ts stic Toyota Altis etroit headqu otive Tire compe Asia accoun an optimi autom has ny has to natura l growth Corolla to toughen thent sedan, billion arner to compa BorgW develop n a bid Asia due in addition major to the C segme recentlook for ry like plans tition in small indust its ar Motor tions for up sAltis in Kirlosk of auto regula ission fi rmed ts in increa Toyota Corolla ment atic transm few marke govern standa rds and ched its for autom g on ations on ily offer ly re-laun emissi n ny ers’ expect cars focusinis to primar ny will New Delhi. compa ello, Chairma ing custom y. The compa t more Asia. This that the period of ner Tim Mangan logies a BorgWar fuel economup to 15 percen atic techno & CEO, issed over segment. offer h autom seek to y throug atic transming has harnes small car four perautom the with damper tion here, includ fuel econom , close to have MPS6 h its of interac time for nies India issions Siel, CEO compa s throug to car transm Honda At a recentan and ement n 15 i nello sion. Few Mahindra, to small Marut and s, betwee ai, cent improv rs the Chairm Tim Manga ar and y be catered China Hyund islight turl system acture arner, initiall Kirlosk India, tion transm therma t increa se in percent BorgW e manufconsta ntnts in produc atic Toyota atic ve fi to vehicl percen segme ercial autom autom four up 30 have said Comm about offer er, the gers and the globe at technologies Japan.

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Change Suprajit ion plans Domest pany is the current to compo d from OEMs. embarked compo cables manuf expans lore and Apr-11 nonty in has hoping l is the deman Banga ny ty e the crore in Apr-10 s ering 14.13% Its capaci t EOU for contro capaci increas Sector mmes The compa nt is in in plastic it Engine 485,122 percen raise its progra mme to around 50 segme Supraj its expert ise 425,058 at 100 enits bid India to 13.87% t. e on a progra ty by HHML implem otive cable logy in North cables 218,321 leverag 50 percen consol idatl capaci autom stage of the the 191,726 sing techno e base. overal t 100 million cables 16.26% also in ny’s by around BAL proces fy its revenu percen t from the fi nal compa ny is 158,829 million es. It part of to supplyg The compa by 42.66 percen 8 The to 150 136,621 to diversi 2.77% g a major i`265.7 hoping grew tation.

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exports/ *** SIAM/ ** Excluding MRPL * Source: ^ excluding considered/

www.amonline.in

all sub

NOVEMBER 2011 AFTERMARKET

51

STUDY

Indian two-wheeler industry: Steady growth continues THE Indian two-wheeler indust ry reported a st rong doubledigit volume growth of 17 percent in Q1, 2011-12 (YoY), even as several other automobile segments showed signs of a cyclical dip in growth during this period. While the northward movement in macro-economic variables including inflation, fuel prices and interest rates has been the nemesis of the automobile indust ry at large, the two-wheeler industry has been relatively less impacted so far. ICRA believes that the resilience shown by the two-wheeler indust ry volumes is likely to persist, a large base notwithstanding, with the indust ry looking on course to record yet another year of double-digit growth. However, the situation may change in the event of higher than expected decline in India’s GDP growth or persistent inflationary pressures over a longer period.

Overall, ICRA expects the two-wheeler industry to report a volume growth of ~13 percent in 2011-12 and a volume CAGR of 10-12 percent over the next five years to reach a size of 21-23 million units by 2015-16. Our growth outlook is built on the strength of the various

52

AFTERMARKET NOVEMBER 2011

structural growth drivers associated with the two-wheeler industry comprising of favourable demographic profile, moderate two-wheeler penetration levels (in relation to several other emerging markets), under developed public transport system, growing urbanization and expected strong replacement demand, besides moderate share of financed purchases.

Segment-Wise Analysis The st rong double-digit volume growth of 17.5 percent recorded by the motorcycles segment in Q1, 2011-12 was not consistent across segments - Entry, Executive and Premium.

The volume growth was a blend of: The flattish growth (~three percent) of the entry segment (bikes having price less than `40,000) which accounts for around 16percent of the total domestic motorcycles sales volumes. The steady growth (~17 percent) of the executive segment (bikes in the `40,00050,000 price range), which accounts for around 65 percent of the total domestic motorcycles sales volumes.

STUDY

Trend in Sales Volumes of Indian 2W indust ry

Source: SIAM

The fast growing (~30 percent) premium segment (bikes having price greater than `50,000) which accounts for around 19 percent of total domestic motorcycles sales volumes.

The Indian motorcycles segment continues to be dominated by Hero MotoCorp (erst while Hero Honda) which has been recording sequential gains in market share over the last three quarters. The top three players accounted for 88.2 percent of the indust ry’s volumes in Q1, 2011-12 (92 percent in 2007-08), with Honda Motorcycles having overtaken TVS since Q1, 2010-11 as the third largest player, behind Hero MotoCorp and Bajaj Auto.

Short-to-Medium Term Outlook ICRA expect s the entry segment volumes in the domest ic market to grow at a much slower pace than the overall two-wheeler indust ry and volume growth in this segment to be driven mainly by exports. Th is is because the segment is no longer a key focus area of OEMs due to limited scope for margin expansion and high interest-rate sensitivity.

While the executive segment is expected to maintain its steady growth, competition is likely to intensify following aggressive model refurbishment and new model launch plans of most OEMs.

The premium segment is expect ed to remain the fast est growing over the medium term, given the st rong growth in purchasing power in the hands of middle-class urbanites, especially in the age group of 20-30 years.

Th is should also translate into superior profit margins for players that are st ronger in the premium segment.

Sales Volumes Analysis The growth in scooter segment’s sales volumes has outperformed that of the motorcycles segment over the last several years. However, in Q1, 2011-12, the scooters segment recorded a growth of 13.3 percent (YoY), lower than the 17.5 percent growth in motorcycle sales.

Th is could be attributable primarily to the capacity const raints of Honda Motorcycles, the market leader in the scooters segment. With this, the share of the scooters segment in the total domest ic two-wheeler volumes declined marginally to 17.8 percent in Q1, 201112 from 18.7 percent in 2010-11.

Market Share Trends Overall, Honda Motorcycles continues to maintain its leadership position in the scooters segment through its fl agship brand Act iva (besides Aviator and Dio) enjoying a market share of 42.4 percent in Q1, 2011-12. However, capacity shortfall at the company’s exist ing plant at

Manesar (Haryana) has rest ricted its volume growth lately. With commercial product ion at Honda Motorcycles’ new plant at Tapukara (Rajast han) expected to commence in Q2, 2011-12, the company is expected to get better equipped to consolidate its market position. However, Hero MotoCorp’s demonst rated success in improving market share (through its sole brand Pleasure) coupled with new scooter models proposed to be launched by TVS and Yamaha over the short to medium could imply shrinkage of market share gap between the market leader and others over time.

Future Outlook ICRA expect s the scooters segment to gradually increase its share in the domest ic two-wheeler market from 18.7 percent in 2010-11 to ~24 percent by 2014-15. With this, the scooters market is est imated to double in size by 2014-15. Thus, even as a multitude of brands already dot the segment’s landscape and more are expected to follow, the likely expansion in the pie should offer sufficient volumes for the indust ry to grow profitably. For the new entrants, a steady gain in market share could hasten the process of profitability improvement.

(Courtesy: ICRA Research. Views expressed are personal)

NOVEMBER 2011 AFTERMARKET

53

STUDY

CV sales to see

‘extreme’ action DOMESTIC road freight transporters, the primary source of demand for goods commercial vehicles (CVs), are gradually evolving into integrated logist ics service providers.

Integrated transporters, who have larger fleets, countrywide dist ribution networks and provide value added services, are adopting the hub-and-spoke model to cut logist ics costs.

The increasing adoption is pushing CV sales to two extreme tonnage segments— heavy commercial vehicles (HCVs: >16 tonne) for hub-to-hub transportation and small commercial vehicles (SCVs: <3.5 tonne) for delivery to end consumers. Although GDP growth will drive overall goods CV sales, prevalence of the hub-and-spoke model will lead CV manufacturers to launch more models in the HCV and SCV segments.

indust ry is gradually evolving, with the dominance of small-fleet operators (SFOs) (who own one-five vehicles), giving way to large fleet operators (LFOs) (owning >20 vehicles).

LFOs, who have pan-India operations, primarily use the hub and spoke model. These operators primarily function on long and medium-haul routes within the supply chain.

Their market share in the indust ry is est imated to have increased from 2 percent in 1993-94 to 11 percent in 2008-09 and is set to increase further in the coming years, as the indust ry consolidates. Under the hub and spoke model, big warehouses (hubs) are set up in different regions of the country, where goods are consolidated and sent to various spokes. From the spokes, goods are finally moved to the various end-consumption points.

Transporters More Organised

Speeding Up Sales

The largely unorganised transportation

54

AFTERMARKET NOVEMBER 2011

As the share of LFOs is slowly rising,

STUDY

Segmental shift within LCV sales 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 200102

200203

200304

200405

Sub-1T

200506 Pick-ups

200607

200708

200809

200910

201011

200910

201011

Upper-end

Segmental shift within MHCV sales 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 200102

200203

200304

200405 ICVs

200506

200607

MCVs

demand in the medium and heavy commercial vehicles (MHCV) segment is shifting from MCVs to HCVs. HCVs are more suitable for hub-to-hub transportation of goods, as they offer a better price/payload ratio than MCVs and are suitable for long-haul transportation. For example, a medium commercial vehicle (MCV) costing about `nine-12 lakh will offer an average payload of nine tonnes, while a multi-axle vehicle (MAV) priced at `12-16 lakh will offer an average payload of 15 tonnes. This means that at a minimal price difference, transporters can transport greater incremental loads on MAVs. Hence, we are witnessing a gradual shift from MCVs, which were earlier used across all routes, to higher and lower tonnage vehicles suited to specific routes. With stricter implementation of the 2005 Supreme Court ban on over-

200708

200809

HCVs

loading and increasing consolidation in the transportation industry, HCVs will continue to eat into the share of MCVs on long-haul routes. Additionally, development of highways and availability of more models in the last two years will also aid demand for HCVs. In a hub and spoke network, dist ribution of goods to end-consumption points takes place through SCVs, such as sub-one tonne vehicles and pick-ups (2-3.5 tonnes). For instance, an organised retail company might have around eight-10 dist ribution centres (spokes), which would supply goods to 20-25 stores (end points). Within SCVs, demand is shifting towards sub onetonne vehicles, aiding sales in the other extreme segment of the CV indust ry.

With more and more cities rest rict ing or regulating the entry of large trucks

in cities, LCVs (especially SCVs) are replacing MCVs on short-haul routes.

Over the next five years too, demand for higher and lower tonnage vehicles is expected to continue rising, with players launching more models in both these segments. During 2010-11 to 2015-16, the share of SCVs in total LCV sales is expected to grow to 92 percent from 86 percent, while share of HCVs (including tippers) in total MHCV sales will increase to 64 percent from 58 percent.

Riding on hub and spoke trend; CV makers to launch more HCV and SCV models The emergence of the hub and spoke network is expected to drive new model launches in the HCV (> 16 tonne) and SCV (<3.5 tonne) segments over 2010-11 to 2015-16. CV makers are launching more HCV models across various tonnage points that are being priced competitively. This offers greater choices to transporters (who are migrating from 16-tonne to 25- and 31-tonne vehicles).

Leading CV manufact urers such as Tata Motors and Ashok Leyland launched heavy tonnage premium trucks under the brands Prima and Unitruck, respect ively. These models have better driver facilities, higher horse power and fuel efficient engines compared to the exist ing range of trucks. Strong growth in the domestic LCV segment has prompted players like GM-SAIC, Beiqi Foton and Ashok Leyland-Nissan to enter the segment.

Factors That Will Push Adoption Currently, national highways const itute only about two percent of the total road network in India, but carry about 40 percent of the total traffic.

On the other hand, state roads and the major dist rict roads account for 18 percent of the road length, but carry only 40 percent of the balance traffic. Over

NOVEMBER 2011 AFTERMARKET

55

STUDY

Category Segments (GVW)

SCV

HCV

Sub-one tonne

PickUps

MAV

(<=2 tonnes)

(2 - 3.5 tonnes)

(>16 tonnes)

Tippers

T. Trailers (>16.2 tonnes)

ALL-Nissan (Dost) Rest

Atul Auto Ashok Leyland (U trucks series) Tata Motors (Ace Zip)

Tata Motors (Prima series)

GM-SAIC

Asia Motor Works

20120

Daimler India Commercial Vehicles (Benz platform) Bajaj Beiqi Foton Motor

the next five years, government investments on road expansion are likely to double from about `three trillion in the previous five years. Of this, a major proportion would be spent on national highways and the rest on state and rural roads.

During 2011-12 to 2015-16, CRISIL Research expects an average of 14.7 km of national highways to be constructed /upgraded per day, at an est imated cost of `2,535 billion. The const ruction of national highways is expected to increase the length to 5,773 km in 2015-16 from 3,737 in 2011-12. The development of highways is expected to replace MCVs by HCVs, use of which is currently rest ricted by inadequate road infrast ruct ure.

Consumption of consumer products in rural areas is set to rise aided by a widening hub and spoke network and better roads. Consequently, movement of goods in these regions will shift from tractors and non-motorised vehicles to LCVs, (especially SCVs) boosting demand for the same. CRISIL Research expects the ratio of sales of LCVs to MHCVs to increase from 1.15 times in 2011-12 to 1.58 times in 2015-16.

Growth In Organised Retail As of December 2010, the two largest organised retail players—Pantaloon

56

AFTERMARKET NOVEMBER 2011

Retail and Reliance Retail—have 2,113 and 860 outlets respect ively. By 201415, Pantaloon plans to add about 15 million sq ft of retail space. As retail chains expand their reach and compete for quicker delivery of goods to consumers, they will outsource their logist ics needs to large transporters using the hub and spoke model.

CRISIL Research expects the organised retail sector to record a CAGR of 23 percent between 2009-10 and 2014-15, while penetration is likely to increase to 9.1 percent from 6.4 percent in the same period.

Emergence Of GST The government proposes to implement a centralised goods and services tax (GST) to replace the existing tax regime (excise, service tax and VAT). However, the new tax norms are yet to be implemented as all states have not finalised the GST structure yet. Under the current tax structure, the Centre levies a uniform tax (CST) on interstate sales besides the local value added tax paid to the state governments. To avoid interstate CST, companies are forced to maintain at least one warehouse in each state.

Emergence of the GST is vital as currently; tax avoidance plays a more important role in deciding how a company sets up its distribution network, than

logistics costs and customer service considerations. This leads the mushrooming of multiple inefficient warehouses in each state. The GST, however, would allow companies to aggregate state-based warehouses into one large, regional warehouse that offers cost and operational efficiencies in geographically large markets. As a result, the use of HCVs for hub-to-hub transportation will increase to service these large warehouses, which function as centralised hubs. Similarly, movement of goods in remote areas will be taken care of by SCVs, thus driving sales in both extremes of the CV industry.

SCVs To Drive LCV Sales As the hub and spoke model proliferates, CRISIL Research expects SCV sales (forming 86 percent of LCV sales) to post a CAGR of 17-20 percent during 2010-11 to 2015-16. HCV sales (including tippers) will grow by 12-14 percent during the same period. Th is would be faster than the 9-11 CAGR growth in overall MHCV sales.

(Please note that the views expressed here are those of CRISIL Research and not of CRISIL’s Ratings division.

CRISIL Research operates independently of and does not have access to information obtained by CRISIL’s Ratings Division.)

PRODUCTS

Hydraulic cylinders OILGEAR Towler Polyhydron manufact ures and offers hydraulic cylinders that have nominal pressure of 63 bar. The select ion of bore and rod diameter is as per ISO:3320. Non-standard bore and rod diameters are also available against special request. Features include: tierod const ruct ion; adjustable cushioning on request; unit dimensions vary; bolted/welded designs available on request; synthetic seals for low frict ion & long seal life; and medium carbon chrome plated rod for higher st rength protect ion from rust & longer seal life.

Oilgear Towler Polyhydron Pvt Ltd - Belgaum Karnataka Tel: 0831-244 1073, Fax: 0831-2441610 Email: sales@oilgear.co.in, Website: www.oilgear.co.in

Hydrostatic variable speed drives COMPACT hydrostatic variable speed drives offered by Khoday Hydraulics are manufact ured by Var-spe of Italy.

The hydrostatic operation is a combination of a hydraulic pump and a motor, which provides a high starting torque at 0 RPM, ideal for frequent start-stop cycles while getting away from peak current required by an elect ric motor at start. Built-in torque limiting valve, either preset or adjustable, helps preventing mechanical damage in case of accidental and sudden stops. Precision variators are available from 0.25 to 22 kW in many sizes. Drives are available with/without the standard elect ric motor. There are three different output speed range, available according to the different HP input to the variator, with the standard input speed of the elect ric motor at 1450 RPM, at all times.

High starting torques are equal to 2 to 3 times nominal, for frequent starts or reversals and continuous work at low speeds, even under load, with even high torques than nominal. These are ideal drives, for bad conditions like, vibrations or aggressive or dangerous or poorly ventilated environments.

They are suitable for ambient conditions, which require water or dust proof const ruct ion. Constant low-speed with continuous duty is possible.

Khoday Hydraulics - Mumbai - Maharashtra Tel: 022-2414 0707, Fax: 022-2414 5266 Email: khoday@vsnl.net, Website: www.khoday.com

Hydrostatic pressure testing machines ACE Automation Engineers manufactures and offers hydrostatic pressure test ing machines that are used for test ing hydrostatic pressure or burst st rength of condenser coils for air conditioners, pipes, pressure vessels, LPG cylinders, fi re extinguishers, hydraulic hoses and heat exchangers.

These efficient and economical machines are designed such that they are easy to operate and maintain. With a test pressure range of 40 to 1300 kgf/sqcm, these custom-made hydrostatic pressure test ing machines are available in two designs, namely hydropneumatic operation for test ing small containers/test ing in hazardous areas; and elect rically assisted hydro-pneumatic operation for testing containers of large volume. Special features include: rugged pumps used in the machines; low-cost motorised pumps are used; to maintain constant pressure the pump used automatically compensate for leakage; ideally suited for operation in hazardous areas; and simple construction of pump for easy maintenance.

Ace Automation Engineers - New Delhi Tel: 011-2511 8561, Fax: 011-2515 3917 Email: sales@acefluidpower.com, Website: www.acefluidpower.com

Hydraulic hand pumps The HP-5012 and H-5016 series of Hydropack India’s hydraulic hand pumps are widely known for their rugged const ruct ion. These hand pumps deliver high volume at low pressure and low volume at high-pressure helps in minimizing working time. They are provided with automatic unloading section of the pumps to minimise manual effect. These hand pumps are used to operate hydraulic jacks, workshop presses, small rubber moulding presses & also serve as a standby unit for many hydraulic equipment with servo system 68 or equivalent hydraulic media. The pumps are ideal when lightweight and portability are importance. These are low cost pumps and can be used up to 700 kg/cm² working pressure. Features include: 2 models; hardened & ground piston; renewable delivery, relief & release valve parts; integral relief & release valves; collapsible hand lever for compact size to meet individual needs; lowest handle effort; lightweight & easy to carry; easy to use/built to last; 1/4” BSP outlet ports; and maximum versatility.

Hydropack (India) Pvt Ltd - Belgaum - Karnataka Tel: 0831-2442559, Fax: 0831-2442658 Email: snd@hydropackindia.com, Website: www.hydropackindia.com

NOVEMBER 2011 AFTERMARKET

57

PRODUCTS

Hydraulic-Operated Pumps

Pneumatic Clamps

VERTEX Hydraulics manufactures and offers hydraulic-operated pumps (model VTC-3000) that are piston-type pumps used for automatic lubrication with the help of hydraulic and pneumatic power.

These hydraulic pumps are similar to handoperated piston pumps. In these systems the piston is actuated by hydraulic and pneumatic cylinder. Some of the technical specifications of the hydraulic pumps include: input of hydraulic pressure ranges from 18-20 kg/cm²; and input of air pressure ranges from five-seven kg/cm²; reservoir capacity is three litres, discharge at six cc per stroke; pressure setting of 15 kg/cm²; and float switch for min, oil level sensing.

STEEL-Smith manufactures and offers pneumatic st raight-line act ion clamps that utilise the same basic design as manual st raightline act ion clamps with an exception of pneumatic act uation. These clamps are completely self-contained with a double-act ing cylinder suitable to the clamp design and only need a pressurised air connect ion.

The cylinders are mounted in line with the plunger of the clamp. The two and fro motion of the cylinder is utilised for operating the clamp, when the cylinder piston extends the plunger of the camp also extends to achieve the lock position and vise-versa for unlocking the clamp. The clamp plunger is drilled and trapped for easy loading of suitable adaptors. Plungers are hardened and ground which run in closed tolerance holes for smoother and more accurate funct ioning of clamps. The pneumatic st raight-line act ion clamps are widely used in fi xtures where locating of components or holes is required and are also used in mini automised presses.

Vertex Hydraulics Pvt Ltd, Ahmedabad, Gujarat Tel: 079-6521 4825, Fax: 079-2676 5650, Mob: 09824039374 Email: info@vertexhydraulics.com, Website: www.vertexhydraulics.com

Pneumatic Vibrators SAN Air Tools manufactures and offers turbine-type pneumatic vibrators (model TV-7200) developed for material handling. These vibrators can operate in any position. These are used to facilitate parts feeding in trays in the automotive industry, supply hoppers and chutes of chemicals and plastics production and in packing lines. These are also used in screening, separating and sizing of fine and coarse powdered materials. In short, dislodge stubborn materials from hoppers or trays. Normal working pressure is six kg/cm².

San Air Tools - Thane - Maharashtra Tel: 022-2534 1981, Fax: 022-2534 2692, Mob: 09819747122 Email: sanairtools@vsnl.net, Website: www.sanairtools.com

Hydraulic Pallet Trucks MAHINDRA Stiller Auto Trucks offers hydraulic pallet trucks that are available in the capacities of 1, 2 and 3 T, with standard fork length of 1.000 and 1.200 mm.

Features include: overload relief valve and handle for effortless lifting; steering handle exclusively for steering manoeuvrability; grease nipples provided on all hinge points having gun metal bearings; and lowering of fork by release valve for safe and easily controlled operation.

Mahindra Stiller Auto Trucks Ltd, Faridabad, Haryana Tel: 0129-2276987, Fax: 0129-5046252, Mob: 09312490940 Email: stiller@ndf.vsnl.net.in, Website: www.mahindrastiller.com

58

AFTERMARKET NOVEMBER 2011

Steel-Smith, Mumbai, Maharashtra Tel: 022-2683 0362 Fax: 022-2683 7287 Email: sales@steelsmith.com, Website: www.steelsmith.com

Tripod Robots FESTO in conjunct ion with machine builder, IFC Intelligent Feeding Components, has made product ion process variability and shorter set-up times possible for Tyco Elect ronics. The Festo tripod robots have created inst antaneous re-calibration of workpiece types a reality at the press of a button. These robots manage product ion with an IFC flexfeeder system that feeds components through the product ion process. Th is simple integration, including the resulting new possibilities for instant process variability, is a pract ical example of the company’s vision moving towards process automation and integration. In line with this vision, Festo has developed a simple control system for the tripod robots that allows easy parameterisation and configuration of new variants programmed using the teach-in funct ion.

The system only requires data input for positions, sequences and settings to be entered via the Festo front end display (FED). These inputs can then be recalled at will to initiate a different process sequence.

Festo AG & Co KG, Ostfildern-Scharnh, Germany Tel: +49-711-3474032 Fax: +49-711-347544032 Email: haug@festo.com, Website: www.festo.com

PRODUCTS

Hydraulic Cranes

Pneumatic Grease Pumps

TRUCK-mounted foldable hydraulic cranes from Aditron India are available with maximum capability and minimum floor space. These cranes fold up for portability. Boom lowers to vertical position enabling the crane to be carried by two persons. They have carrying handles built in. Hand pump operation is standard. Th ree feet lifting chains can be adjusted to various heights. Base plates can be mounted either in an upright position or inverted to keep truck beds clear.Powered lifting cylinders, remote control winches operated cable lift and remote controls are also available. Other features include: 2000 kg capacity up to 130 in lift height, booms powered by hydraulic cylinder for smooth easy operation, 3600 base plate rotation, etc.

CENLUB Industries manufact ures and offers pneumatic grease pumps for greasing with 50:1/75:1/100:1 compression ratio. These grease pumps are safe made in conformity with the EEC 89/392 directives and subsequent modifications. The body and sleeve of the pumps is of anodised aluminium. Pumping is of carbon steel and packing of NBR/polyurethane. Temperature range is +10/+40°C. Types of fluid include petrol, grease, etc.

Aditron India Pvt Ltd - Noida - Uttar Pradesh Tel: 011-2627 5968/7617, Fax: 011-2646 1425 Email: info@aiplen.com, Website: www.aiplen.com

Hydraulic Hand Pallet Trucks BAKA Liftec (India) offers hydraulic hand pallet trucks (model FK-520) that have lifting capacity ranging from 2000 kgs to 3000 kgs. These hand pallet trucks have ergonomically handles and are user-friendly.

The hand pallet trucks are compact hydraulic units (imported) and have no oil spillage.

Baka Liftec (India) Pvt Ltd - Bengaluru - Karnataka Tel: 080-2783 2661, Fax: 80-2783 1906 Email: bakalift@vsnl.net, Website: www.baka.de

Cenlub Industries Ltd - Faridabad - Haryana Tel: 0129-2275483, 411 3701/02, Fax: 0129-2260524 Email: cenlub@cenlub.in, Website: www.cenlub.in

Hydraulic Excavators CATERPILLAR Commercial offers hydraulic excavators (model 330D LME) that are engineered for extreme applications featuring a CAT C9 ACERT 200 kW (268 HP) engine delivering 9 per cent more horsepower than the previous C-series model. Incorporating advances such as automatic engine speed control and operator selected power management settings these excavators ensure productivity reached with optimised fuel efficiency. The hydraulic excavators are also fitted with hydraulic snubbers to reduce shock loads on the system in extreme applications. Aarpee Mines 330D is a LME model featuring a long undercarriage for added stability and lift capacity, providing an excellent platform for bench loading the company’s haul truck fleet. The mass excavation (ME) boom and stick, combined with 35,000 kPa hydraulic pressure, delivers high digging forces and allows for larger buckets to be fitted.

Caterpillar Commercial Pvt Ltd, Bengaluru, Karnataka

Hydraulic Hoses

Tel: 080-4111 7910, Fax: 080-4111 7998 Email: sathya_p@cat.com, Website: www.cat.com

AEROFLEX Hydraulic manufact ures and offers high-pressure hydraulic hoses with assemblies & ferrule fittings and hydraulic accessories. All types of hydraulic hose assemblies are manufact ured that are used for earthmoving machineries, plast ic machineries, heavy machineries, and road equipments. Hydraulic hoses for tractors, JCB, L&T Poclain, TATA Hitachi, BEML, rollers, Demage, paver finishers, hot mix plants, plast ic inject ion molding machineries, and other hydraulic machineries are also manufact ured. Also offered are low pressure hoses, SS Teflon hoses, SS corrugated hoses, steam hoses, hydraulic fittings, ferrule fittings, adaptors, Tees, elbows, seamless pipes, etc.

Pneumatic Screwdrivers

Aeroflex Hydraulic, Ahmedabad, Gujarat Tel: 079-2585 3768, Fax: 079-2585 0910, Mob: 09426016489 Email: aeroflexhoses@yahoo.com

DSP Enterprises offers pneumatic screwdrivers for various applications. These screwdrivers are lightweight, sleek, very handy and designed for maximum operators’ comfort. A number of models with varying capacities, speeds and sizes are available. The mechanised application yields optimum results. User industries are: automobiles, shipbuilding, furniture industries, white goods assembly units, electronic goods assembly units, fan industries, etc. Applications include for fastening of screws for various assemblies in industries.

DSP Enterprises, Hyderabad, Andhra Pradesh Tel: 040-2387 5876, Fax: 040-2387 5876, Mob: 09849051876 Email: dompneumatics@yahoo.com, Website: www.dompneumatics.com

NOVEMBER 2011 AFTERMARKET

59

PRODUCTS

Centrifugal Pumps

Pilot Valves

GRUNDFOS multistage centrifugal pumps (type CR, CRI & CRN) offered by Union Enterprise, are suitable for liquid transfer in washing systems, cooling & air-conditioning systems, water supply systems, water treatment systems, fi re fighting systems, indust rial plants, boiler feeding systems, etc. Technical specifications are: Flow (Q ): maximum 120 m³/h; head (H): maximum 330 m; liquid temperature: -40°C to +180°C; and operating pressure: maximum 33 bar. Some of the features and benefits of these centrifugal pumps include: reliability, high efficiency, service-friendly, space-saving, and suitable for slightly aggressive liquids. Optional features are: dry running protect ion & motor protect ion, via LiqTec, custombuilt variants, etc.

FESTO Controls offers pilot valves (VOFD) that are highly corrosion-resistant and extremely reliable. These valves are ideal for heavy-duty applications in pharmaceutical, chemical and petrochemical systems, thanks to their st urdy design, explosion protect ion for zone 1/21 G/D and SIL certificate for ESD applications. Benefits include: st urdy & very corrosion-resistant; easy combination of the required coil & matching valve, thanks to the armature guide tube; explosion protect ion for zone 1/21 (gas & dust); direct mounting on the drive; and high reliability of the direct ly act uated valves, especially in emergency shut-down (ESD) funct ions.

Technical specifications are: direct ly act uated; 3/2-way valves; armature guide tube with poppet valve technology; pressure range 0-10 bar; connect ion variants G1/4, NPT1/4, G1/4 & NAMUR; and Ex em & Ex d ATEX explosion protect ion.

Union Enterprises Pvt Ltd - Mumbai - Maharashtra

Festo Controls Pvt Ltd - Bengaluru - Karnataka

Tel: 022-2267 1368 Fax: 022-2264 1998 Mob: 09820758373 Email: response@unionpumps.net Website: www.unionpumps.net

Tel: 080-2289 4100 Fax: 080-2783 2058 Email: info_in@festo.com Website: www.festo.com

Vertical Submersible Pumps THERE are lots of applications in chemical industries, where a notorious, hazardous and corrosive chemical are to be handled, and the gland leakage is undesirable.

Vertical submersible pumps are best selfpriming pumps, as the pump portion is dipped inside the liquid. These pumps find wide applications for eff luent, acids, pickling solutions, transfer of solvents from underground storage tanks, etc. Polyquip offers vertical submersible pumps in polypropylene, CI, SS-304/316 up to 3 meters depth, with capacities up to 30 m³/hr and heads up to 20 meters.

These pumps run at 1440 or 3000 RPM. The pumps also available with vapour seal arrangements. Also offered are horizontal process pumps in PVDF, polypropylene, Alloy-20, SS-304/316, CI; self-priming pumps; and rotary gear pumps.

Polyquip - Mumbai - Maharashtra Tel: 022-2411 5957 Fax: 022-2416 5447 Email: polyquip@vsnl.com Website: www.polyquip.com

60

AFTERMARKET NOVEMBER 2011

Vacuum Pumps MINIVAC RVD & MVC series of rotary vane oil-free direct coupled/belt-driven and monobloc vacuum pumps offered by Shree Siddhivinayak Indust ries are direct ly mounted on common base frames.

These vacuum pumps are compact in size, vibrationfree and hence can be mounted inside the machines. The pumps attain maximum vacuum levels up to 25” of Hg and capacities ranging from 50 LPM to 2000 LPM. Use of imported graphite vane give advantage of prolonged vane life, silent operation and reduces wear & tear on the stator.

The rotary vane oil-free vacuum pumps are useful in many applications, like capsule printing machines & other pharmaceutical machineries, packaging & labeling machines, screen printing & plate making, book binding & folding machines, vacuum chucking machines, etc.

Shree Siddhivinayak Industries, Dist Thane, Maharashtra Tel: 022-2845 8372 Fax: 022-2845 7073 Mob: 09820081403 Email: minivac@rediffmail.com Website: www.minivacpumps.com

PRODUCTS

K&N Air Filter K&N, the world’s best air fi lter is the inventor and leading innovator of reusable cotton gauge fi lter technology. K&N fi lters are environmental friendly as compared to normal paper fi lters. It is designed to increase horsepower and acceleration which improves performance significantly. K&N also gives a million mile limited warranty which will outlast the life of your vehicle. The advantages include increased power, performance, washable and reusable properties. Besides, it is available for every vehicle on the road today. Paper fi lters are made of pleated wood pulp bonded together. As dirt builds, passages are plugged and fi lter must be replaced in approximate 15,000 km. The fibres swells due to moist ure decreasing the airflow.

In the K&N air fi lters turbulent air enters fi lter area and flows through the pleated multi-layered oil impregnated surgical cotton fabric.

The suspended dirt hardly causes any airflow rest rict ion. Oil barrier attract s and holds dirt to become an additional fi lter and bonded cotton wire/mesh st raightens airflow reducing turbulence.

Besides, the st raightened and fi ltered high volume air enters the intake syst em.

Nano Additive Nanorich technologies offers world’s first tested and approved common liquid fuel enhancer/additive for petrol and diesel with nanotechnology under the name of Automax/F2-21 manufact ured by H 2Oil,USA. The ratio of application is one ml for five liters and also advanced version with one ml for 10 liters. The cost is `1.20 per liter application. The additive is available in 10 ml, 120 ml, one liter, 10 litres packing for individual and inst itutional users.

Bosch Washing Systems: DIY Car Wash

Bosch is known for its contributions to the automobile industry and its customers. It has made life easier for us by giving us the Aquatak 100plus and Clic130 to test. These cleaning systems enable one to wash and clean a car with far less effort and much less time as well as saving car wash expense. The Clic130 uses a 2000W motor, which can be plugged in and a pipe which can be connected to a tap and acts as a water inlet which draws the water into the motor. It has a fi xed nozzle, which can be switched between fan spray, high pressure pencil jet and low pressure spray for rinsing. It also has an integrated detergent tank, self coiling elect ric cable and a nozzle hose. The maximum pressure produced is 130bar.

All it needs is to be connected to a power socket and tap, and in five minutes the car is spotlessly clean. A bike takes just two minutes to clean. It also uses less water compared to a garden hose and the 130bar of pressure is enough to remove the stains in one sweep like a magic wand. It has made vehicle cleaning routine fun.

Aquatak 100 Plus: `13,625 Aquatak Clic 130: `49,000 www.boschindia.com

Sonax Car Care Products CAR care products of the German manufact urer Sonax are well known to car drivers worldwide. From car polish to additives—a wide range of products and services reflects the expertise and versatility of Sonax. Keeps your car looking young forever and it’s absolutely safe on your car and you’ll never be dissatisfied.

Silicone & Wax Remover Removes silicone, grease and wax smear fi lms from windows, paint-work and chrome. It creates a suitable foundation for re-spraying, provides good adhesion for st icky labels, cleans windows after hot wax.

Xtreme Polish +Wax 2 Nano Pro Polish-based on nanotechnology, for nearly new and slightly worn paintwork. Gentle on paintwork, with mild abrasives which break down into nano size particles during polishing. Fine scratches (eg from car-wash brushes) are evened out and the dull shine haze is removed. The nano wax particles penetrate deeply into the paint pores to provide a mirror shine and long-lasting protection.

They fit perfectly into every paint structure (even scratchresistant paints), so they don’t have to be broken down by strenuous polishing.

NOVEMBER 2011 AFTERMARKET

61

ADVERTISERSâ&#x20AC;&#x2122; LIST

PgN o. Advertiser...........................................Tel................................. E-mail ............................................Website

FIC ...... ADEA Awards........................................+91-22-30034650...........prachi.mutha@infomedia18.in ...... www.adea.in

19 ....... Bosch Limited ......................................+91-80-22999269 ..........sanjay.chakravarty@in.bosch.com .. www.boschindia.com

11 ....... Chem-Verse Consultants (I) Pvt Ltd ......+91-22-24095503 ...........sales@chemvers.com ..................... www.chemverse.com

6......... Confederation Of Indian Industry .......+91-124-4013871 ........... rachna.jindal@cii.in ..................... www.autoexpo.in

4,8 ...... Engineering Expo .................................+91-9819552270 ............engexpo@infomedia18.in .............. www.engg-expo.com

23,25.. Federation Of Automobile Dealers Associations.....+91-11-23320095 ...........fada@airtelmail.in ......................... www.fadaweb.com

15 ....... KYB Asia Co Ltd ....................................+91-9871687888 ...........anup73@sify.com ........................... www.kyba.co.th

BC ...... Litel Infrared Systems Pvt Ltd ..............+91-20-66300636 ..........sales@litelir.com ............................ www.litelir.com

BIC ..... Lubrizol Advanced Materials India Pvt. Ltd. .....+91-22-66027800 .........Estane-SA@lubrizol.com .............. www.lubrizol.com/engineeredpolymers

3......... Madhus Garage Eqpts ..........................+91-80-26660656 ..........madhus@madhusindia.com .......... www.madhusindia.com

62

AFTERMARKET NOVEMBER 2011

PRODUCT INDEX

Product ................................................................................Pg N o.

Product ................................................................................Pg No.

11th Auto Expo-2012............................................................. 6

Instant drying & curing technology ..................................... BC

A/C service equipment.......................................................... 3

K&N air filter ........................................................................ 61

ADEA - Automotive Dealership Excellence Awards ............... FIC

Lightings ystem..................................................................... 19

Alternatives........................................................................... 19

Lubricants............................................................................. 19

Batteries ............................................................................... 19

Mantenance chemicals ......................................................... 11

Brake p ads ............................................................................ 19

Nano ad ditive ....................................................................... 61

Brake testing equipment ...................................................... 3

Pilot valves ........................................................................... 60

Centrifugal p umps ................................................................ 60

Pneumatic c lamps ................................................................ 58

Clutch plates & cover assemblies .......................................... 19

Pneumatic grease pumps ..................................................... 59

Collision repair system ......................................................... 3

Pneumatic screwdrivers ....................................................... 59

Exhibition - Engineering Expo .............................................. 4,8

Pneumatic vibrators ............................................................. 58

FADA’s 7th Auto Summit ....................................................... 23,25

Relays ................................................................................... 19

Filters.................................................................................... 19

Sockero bservers................................................................... 15

Gas a nalysers ........................................................................ 3

Sonax car care products ....................................................... 61

Gasoline systems .................................................................. 19

Spark plug ............................................................................ 19

Gear pumps .......................................................................... 19

Spot welding equipment ...................................................... 3

Heatings olutions.................................................................. BC

Starter m otor ........................................................................ 19

Horns .................................................................................... 19

Synthetic l ubricants .............................................................. 11

Hydraulic c ranes ................................................................... 59

Thermoplasticp olyurethanes............................................... BIC

Hydraulic c ylinders ............................................................... 57

Tripod r obots ........................................................................ 58

Hydraulic excavators ............................................................ 59

Tyre changers ....................................................................... 3

“Hydraulic hand pallet trucks” ............................................. 59

Tyre inflation e quiment ........................................................ 3

Hydraulic hand pumps ......................................................... 57

Vacuum pumps..................................................................... 60

Hydraulic hoses .................................................................... 59

“Vertical submersible pumps” .............................................. 60

Hydraulic pallet trucks ......................................................... 58

Washing s ystems ................................................................... 61

Hydraulic-operated pu mps ................................................... 58

Wheel a ligners ...................................................................... 3

“Hydrostatic pressure testing machines” .............................. 57

Wheel balancers ................................................................... 3

Hydrostatic variable speed drives......................................... 57

Wiper b lades ......................................................................... 19

Industrial ae rosls .................................................................. 11 FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

NOVEMBER 2011 AFTERMARKET

63

64

AFTERMARKET NOVEMBER 2011

1246990

August 2010

Over Apr.-Aug (10-11)

Apr.-Aug (11-12)

% Change

2010-11 Apr.-Aug

(5 Months) in F.Y.

Avg. Mthly. Prdn.

(5 Months) in F.Y. 2010-11 Apr.-Aug

Avg. Mthly. Prdn.

Aug 10 (Prodn.)

Aug 11 over

5%

1249362

1317994

(-)8%

1146232

August 2011

% Change

Truck/Bus

Category

9%

2058232

2246252

3%

2131900

2197914

Passenger Car

(-)3%

126219

122237

1%

123229

124321

Jeep

23%

464950

570631

20%

456532

547877

L.C.V.

4%

233739

242240

(-)12%

225267

197852

Front

9%

151865

165128

5%

142116

149938

Tractor Rear

1%

79489

79966

(-)24%

74336

56127

Trailer

10%

20741

22845

(-)14%

20399

17481

Adv

10%

15022

16565

1%

15483

15610

Otr

20%

944854

1131246

10%

1056329

1167107

Scooter (2 Wheeler/Moped)

27%

546983

695904

22%

594233

722828

Scooter (3 Wheeler)

11%

3484084

3855629

5%

3604229

3776421

Motor Cycle

CATEGORYWISE TYRE PRODUCTION AUGUST 2011 AND COMPARISONS

15%

48510

55853

11%

56747

63177

Industrial

12%

9424050

10522490

4%

9747790

10182885

Total

DATA

134757

August 2010

Over Apr.-Aug (10-11)

Apr.-Aug (11-12)

% Change

28%

55%

79484

140937

Avg. Mthly. Prdn.

(5 Months) in F.Y.

2010-11 Apr.-Aug

123188

181055

27%

86804

110636

Passenger Car

Avg. Mthly. Export (5 Months) in F.Y. 2010-11 Apr.-Aug

Aug 2010 (Exports)

Aug 2011 over

47%

198444

August 2011

% Change

Truck/Bus

Category

(-)26%

8157

6061

30%

6700

8674

Jeep

23%

108268

133391

40%

99313

139188

LCV

95%

654

1273

(-)9%

1237

1120

Front

(-) 17%

2480

2064

(-)5%

2196

2079

Tractor Rear

(-) 64%

170

61

0%

0

0

Trailer

82%

10455

19064

356%

3785

17243

Otr

177%

2865

7942

(-)92%

9958

815

Scooter (2 Wheeler /Moped)

34%

43807

58566

31%

50004

65662

Scooter (3 Wheeler)

17%

60231

70637

(-)10%

52492

47348

Motor Cycle

26%

7947

10039

(-)13%

11156

9686

Implement

CATEGORYWISE TYRE EXPORTS AUGUST 2011 AND COMPARISONS

35%

6214

8396

45%

6525

9443

Industrial

32%

471669

621737

31%

464927

610338

Total

DATA

NOVEMBER 2011 AFTERMARKET

65

POST SCRIPT Why Aftermarket?

I

ndia has been scripting success stories in the auto industry for some time now. Vehicle production has doubled in the last six years and still growing strong. And this momentum is expected to continue for the next few years as the density of passenger cars in India is just 12 per 1,000 population, which is abysmally low even when compared with our Asean peers. Healthy economy, increasing disposable incomes, expanding urban centres, creation of new townships and growth in infrastructure will only catalyse the growth of automobiles further.

The used car market, which is still in its nascent stage, is predominantly in the unorganised sector. However, the business is set to boom due to inflow of vehicles on account of shrinking life cycle of passenger cars—from about 15 years a decade ago to about five years now, at least in the cities and towns. Today, the cream for dealers lies in the after sales service, which is why multi-brand third party service stations are mushrooming. Most of the players in this space offer quick repair service, which is a money-spinner. And this is the stimulant for more players to get in to the organised multi-brand service centres and used car retail outlets.

It is a well known practice in the country that the owners of older vehicles migrate to independent service networks for various reasons including proximity, convenience, affordability and faster service. Besides, the trust that the neighbourhood garages offer outweighs the authorised service centres due to personal attention etc. Moreover, with the vehicle manufacturers focusing more on the warranty period, catering to service requirements of older cars are being taken up or shared by independent players. However, with the vehicles getting feature rich, the probabilities of the conventional garages offering repair services is getting reduced. To address the issue, some of the branded third-party multi-brand car service companies have conceptualised methods to help these garages move up in the value chain both in terms of technical capability and profitability.

These factors made the Indian automotive aftermarket grow at a steady pace. With the vehicle parc increasing, it is expected to expand rapidly over the next five years. The total size of the Indian aftermarket is currently estimated at `33,000 crore, while the global market is worth `2,700,000 crore. These mind-boggling figures only reemphasise further the potential for growth.

Automotive aftermarket offers tremendous opportunities for the players across the value chain and we at Infomedia 18 believe that these esteemed people should be informed of the developments periodically. And this is the impetus for launching a new magazine—Aftermarket.

The monthly magazine will keep you posted of the developments in this segment in terms of news, views, trends, technology, analysis and features on best dealerships and review of service centres.

Aftermarket will initially have eight sections—News, Rearview, Cover Story, Interview, Cutting Edge, Focus, Viewpoint and Extra Mile. Besides, it will have snippets on new products that come in to the aftermarket space. The News section will update you on the recent happenings while Rearview will look back some of the best service centres and their best practices. Each issue will have a cover story, which will be topical in nature. You will have the opportunity to listen to celebrity CEOs of companies operating in the aftermarket, in every issue under the Interview section. Cutting Edge will have stories on technology, Focus on some issues concerning the segment and Viewpoint, as it denotes, will have the viewpoint of industry representatives. The last section, Extra Mile, is all about the art of selling automobiles—you will have stories on the best dealerships and can be a stimulant for you to emulate best practices.

- T Murrali

66

AFTERMARKET NOVEMBER 2011

Purchase it locally from our newly opened warehouse in Mumbai!

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Estane速 TPUs provide: Estan Abrasion Resistance Elongation Superior Tear Strength Excellent Tensile Strength Ease of Processing

From boats to planes to passenger cars, Estane TPUs will offer you solutions to keep your business moving.

In the transportation industry, Estane速 Thermoplastic Polyurethanes are widely used for their excellent properties such as flexibility over a wide temperature range, optical clarity, flame retardancy, adhesion to various substrates, superior abrasion resistance and extreme durability.

For more information email us at Estane-SA@lubrizol.com or visit our web site.

www.lubrizol.com/engineeredpolymers

息 The Lubrizol Corporation 2011, all rights reserved. 速 Estane is a registered trademark of The Lubrizol Corporation.