INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET
52 Pages `50
Vol. 2 No. 3 September 2012
News
Carnation
Special Report Virtual Wheeling
INTERVIEW
Devdutta Chandavarkar, MB
Brought to you by
Auto Monitor
EDITORIAL A Tall order AN industry that was established just around half a decade ago is looking to make a meaningful contribution to the auto sector. Multi-brand service stations are just beginning to make their presence felt but it may be a while before they are visible and gain customers’ confidence. So how does one assess these workshops that are literally on the fringes of the auto industry? Reaching out to the vast population of car owners by promises of cheaper alternatives compared to OEM authorised service stations, while also being accessible (through convenient and at times, prime locations) would have been a challenge for any new player. Moreover, lack of support from OEMs and increasing complexity in new generation of cars coupled with restricted supply of spare parts from OEMs can only make things more difficult for multi-brand workshops. These hurdles have led to much slower growth of the segment compared to what was envisaged a few years ago. Unlike the car servicing market here, sales and servicing of cars are distinct activities carried out in separately owned networks in most developed markets. There is a scope for closer monitoring of repair & replacement and transparency in spare parts consumed at independent service outlets. Given the market dynamics here, it may be a while before something similar is witnessed in India. A clear issue for these multi-brand service solution providers is to gain customer confidence. Achieving that might be a tall order but many things may subsequently fall into place once customers show more confidence in such independent service outlets, according to a senior member of general insurance company. In the latest issue of Aftermarket, we have focussed on major opportunities in the export of spare parts and what is required to be done to achieve a larger footprint for Indian suppliers in the global aftermarket. We welcome your feedback. Comments can be sent to am.editorial@network18publishing.com
SEPTEMBER 2012 AFTERMARKET
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NEWS
CONTENTS NEWS
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13
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12 Talbros-Marugo tie-up for rubber based products 13 Interchain acquisition steels India footprint 14 Deeper penetration,vehicle safety on Hella’s cards 15 Minda to Spark in-car infotainment market
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COVER STORY 22 Are You Being Served? Multi-brand service centres look to take the next step in their evolution. Also on the cards are strategic plans to win customers’ trust with better service packages. Read on… 22
IN CONVERSATION 26 Mercedes Benz’s Devdutta Chandavarkar speaks on the nuances of setting up a luxury car service network & his outlook for the auto service industry INDIA’S FIRST MAGAZINE FOR THE AUTOMOTIVE AFTERMARKET
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40 52 Pages `50
Vol. 2 No. 3 September 2012
News
Carnation
Special Report Virtual Wheeling
SPECIAL REPORT 20 Will virtual wheeling reach its destination?
INTERVIEW
Devdutta Chandavarkar, MB
Brought to you by
Auto Monitor
Cover Design
CUTTING EDGE 40 Advanced CV safety technologies to be showcased at IAA
Varuna Naik Mahesh Talkar
SEPTEMBER 2012 AFTERMARKET
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SEPTEMBER 2012 AFTERMARKET
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NEWS
Our Bureau
CARNATION Auto has opted to take the franchise route to reach out to customers and recently kicked off its first used car dealership in Thane, near Mumbai. Its franchise partner, Car Galaxy will provide Carnation certified pre-owned cars. “We are seeing increasing interest among car buyers for upgrading to premium or higher segment cars from compact cars that they might own. Moreover, we are looking to encourage buyers to seek quality alternatives in the used car segment on a neutral platform not aligned with OEMs,” said Chairman & Managing Director, Carnation Auto, Jagdish Khattar. Leveraging its existing car service network, the company is hoping to provide certified cars that have been subjected through 160 points quality check and in-house refurbishment. Additionally, the certified used cars would be offered free services, warranty, hassle-free documentation, and after sales support. According to Carnations’ estimates, the used car industry is expected to grow at a rate of 18-20 percent per annum, and the organised segment is likely to witness faster growth at around 40 percent. “We are in a position to create leads for used cars and even new cars by the virtue of operating a network of multi-
The used car industry is expected to grow at a rate of 18-20 percent per annum, and the organised segment is likely to witness faster growth at around 40 percent
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AFTERMARKET SEPTEMBER 2012
(L-R)Rajan Pental, VP, HDFC Bank, Sanjay Wasan, CEO, Car Galaxy, Jagdish Khattar, Chairman & MD, Carnation Auto, Ashok Khanna, Sen VP, HDFC Bank, At The Thane Dealership
Carnation takes franchise route brand service stations. We are looking to leverage this advantage and this franchise is a step in that direction,” Khattar added. He emphasised that Carnation is working on a portal or online platform to connect buyers and sellers of used cars and it is critical for such potential to have a physical infrastructure in place in order to create customer confidence. The company is looking to tie-up with finance partners including banks and finance companies to offer a one stop solution including service, sales support and financing for potential customers at most of its outlets over a period of time. Promoted by former Managing Director of Maruti Suzuki, Jagdish Khattar, Carnation Auto operates a chain of multi-brand automobile sales
and service network with a state-ofthe-art infrastructure for car services, and related solutions like accessories, insurance, WoW (Workshop on Wheels) and certified pre-owned cars. It received its first round of funding of `108 crore from Premji Invests and IFCI Ventures, and debt funding from Punjab National Bank for executing the nation-wide rollout of its multibrand auto solution hubs. It also recently concluded its second round of funding of `85 crore from Gaja Capital. Since its launch in October 2008, Carnation Auto has already set up around 24 service centres, with a collective count of 635 service bays across 16 cities. It also operates 17 preowned cars showrooms, and 50 odd Workshop-on-Wheels.
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Bosch Limited, Automotive Aftermarket, P.B. No. 3000, Hosur Road, Adugodi, Bengaluru - 560 030. Ph.: (080) 2299 9228, Fax: (080) 2299 9796 .www.boschindia.com Sales Offices: Ahmedabad: Ph.: (079) 6614 2201. Bengaluru: Ph.: (080) 2213 2081/ 2222 5101/ 2227 7653/ 2223 7056. Bhubaneswar: Ph.: (0674) 662 8000/ 030. Chandigarh: Ph.: (0172) 458 7228. Chennai: Ph.: (044) 2815 5815/ 3916. Delhi: Ph.: (011) 2334 8264. Ernakulam: Ph.: (0484) 280 5601. Ghaziabad: Ph.: (011) 2334 7803. Guwahati: Ph.: (0361) 213 1647/ 648. Hubli: Ph.: (080) 2223 7056. Indore: Ph.: (0731) 425 5010. Jabalpur: Ph.: (0731) 425 5010. Jaipur: Ph.: (0141) 510 5881. Jodhpur: Ph.: (0141) 510 5881. Kolkata: Ph.: (033) 4015 1400/ 4015 1421. Lucknow: Ph.: (0522) 491 2503. Madurai: Ph.: (044) 2815 5815/ 3916. Mumbai: Ph.: (022) 2493 2071/ 72. Nagpur: Ph.: (0712) 268 1738. Panchkula: Ph.: (0172) 458 7708. Patna: Ph.: (0612) 645 0685. Punjab: Ph.: (0172) 458 7708. Pune: Ph.: (020) 6725 4769. Raipur: Ph.: (0771) 425 5600. Ranchi: Ph.: (0651) 236 1183. Rajkot: Ph.: (0281) 246 1571. Secunderabad: Ph.: (040) 2799 0266/ 0308. Vijayawada: Ph.: (040) 2799 0266/ 0308.
NEWS
Our Bureau
JAPAN-BASED Marugo Rubber Industries Ltd has recently signed an equal joint venture with Talbros Automotive Components to manufacture anti-vibration components for automotive applications. According to Talbros, the joint venture company would undertake designing, development and manufacturing of rubber to metal bonded anti-vibration products (suspension bushes, engine mounts, strut mounts) and hoses for the automotive sector. As a part of the JV agreement, rubber business owned by Talbros Automotive Component is likely to be transferred to the proposed joint venture company to be owned by Marugo Rubber Industries Ltd, Japan (50 percent + one Share) and the company (50 percent-one Share). The company declined to share any details on the development. “We will share details of the JV only after we have plant ready for it,” said a company official. Marugo Rubber Industries, based in Kurashiki, Japan designs and manufactures rubber products such as anti-vibration products, bushes and rubber hoses for several OEMS such as Suzuki, Mitsubishi, Fuso, Isuzu and Nissan. Talbros Group has been actively scouting for global partners in different areas within the automotive sector in recent months. Talbros Automotive Components (TACL) signed an equal JV with the global automotive systems and components supplier, Sistemi Sospensioni SpA, a subsidiary of Italy's Magneti Marelli for manufacturing steering and suspension components. Another group company, QH Talbros entered into a technical alliance agreement with the Japanese ball joint manufacturer, Musashi Auto Parts.
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Talbros-Marugo tie up for rubber based products The Japanese company which also manufactures camshaft, transmission and gear components apart from ball joint will help the Indian partner in design, development, testing of prototypes and give the process for mass manufacturing. The gasket division of the group had earlier signed a technical assistance agreement with Sanwa Packaging Industry Company, Japan, for obtaining technical know-how for the manufacturing of heat shields for automotives and related applications. The group has recently set up a plant in Chennai for manufacturing steering and suspension to cater to the needs of
As a part of the JV agreement, rubber business owned by Talbros Automotive Components is likely to be transferred to the proposed joint venture company to be owned by Marugo Rubber Industries Daimler’s new project, Bharat Benz to which, it claims to be the single source supplier for all chassis parts.
NEWS
Interchain acquisition steels India footprint Our Bureau
HARMAN has acquired Bangalorebased Interchain Solution to augment the company’s automotive infotainment and telematics offerings. Interchain’s products such as GWVectra and GWTrack will complement Harman’s portfolio and also expand the company’s reach to include commercial vehicle makers. Interchain Solution offers telematics, fleet management, android-based invehicle infotainment and location-based solutions. Telematics is a technology that uses IT and communications in an integrated manner in cars and other vehicles. According to Harman officials, the acquisition will expand its design and engineering footprint in India and augment Harman’s telematics offerings in the aftermarket
and OEM segment. Interchain has an array of hardware platforms that are deployed for fleet tracking, connectivity, telematics applications and an Androidbased infotainment solution for auto manufacturers. The acquisition also complements Harman’s existing portfolio and gives it access to Interchain’s customers that include TeleAtlas, ALJACS Toyota, Mahindra & Mahindra and government institutions such as police and transport departments of various cities across India. MD, Harman India, Anand Ramamoorthy said, “The combination of Interchain and Harman will provide our customers in both established and emerging markets a compelling proposition. In addition to enhancing our competitiveness, speed to innovate and spread of offerings
In addition to enhancing Harman’s competitiveness, speed to innovate and offerings, the tie up with Interchain will allow it to offer competitive products & solutions in the space, it will allow us to offer our clients integrated and competitive products and solutions.” In addition to planned integration with Harman, Interchain will continue working with its existing customers in deploying and maintaining its custom solutions. Interchain employs some of the brightest engineers for end-to-end product design and development at its R&D centre in Bangalore.
SEPTEMBER 2012 AFTERMARKET
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NEWS
Deeper penetration, vehicle safety on Hella’s cards
Nabeel A Khan
PRODUCTS like BCMs (Body Control Modules) with remote key and CAPE (Car Access Passive Entry) systems may well be the road to growth for Hella India Automotive Private Limited (HIAPL) or erstwhile Hella India Electronics (HIE). The company sees a high potential for the range of products that can be tailored to this cost sensitive vehicle segment. The company has tuned a number of products catering to the emerging requirements of OEMs. Its portfolio includes products like battery sensors and voltage stabilisers to implement idle-stop functionality and fuel control modules to reduce the average power consumption of the fuel pump. The manufacturer of components and systems for lighting technology and electronics sees a rise in demand for fuel efficient vehicles in the Indian market. Currently, the industry demand is driven by the increasing fuel prices, the cost of ownership, government regulations on environmental target and emission control norms, and competition with respect to global OEMs.
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With all the major global vehicle manufacturers making their foray into the Indian markets, the ready availability of advanced features has fuelled the demand for electronics content in the vehicles here. In order to cater to the rising demands of the ‘more aware end customers’ for safety, comfort and to ‘stay connected’, the pressure to enhance the electronic component usage on OEMs has significantly gone up. In fact, high electronics content is now one of the main differentiating factors contributing to the success of the respective vehicles. The key features that are sought after are fuel efficiency, comfort and safety. At the Auto Expo 2012 held early this year, a shift in trend was observed viz-a-viz the previous Auto Expos. The driving and differentiating factors were high electronics-based passenger comfort and safety enhancing features. Another trend leading to enhanced electronic component usage is driven by the government regulations. “In the area of fuel efficiency, we don’t see a big difference, rather a greater need for cost sensitive vehicles as these
products help to reduce the cost of ownership. The challenge will be to make comfort features cost competitive for B and even A segment cars. We will see B segment cars in the future with BCMs, RKE (Remote Keyless Entry), CAPE (Car Access Passive Entry) systems,” said MD, HIAPL, Naveen Gautam. Products contributing to fuel efficiency include FCM (Fuel Control Module), EVP (Electronic Vacuum Pump), IBS (Intelligent Battery Sensors) and DC/DC Converters & Stabilisers. In addition to this, the company sees an increase in Drive by Wire, where HIAPL is offering APS as well as torque and angle sensor for power steering. In terms of growth, Hella is targeting a growth of 25 percent between 2010 to 2015. “In these areas, we are working on a variety of products in the market like EVP, FCM, battery sensors, DC/DC converters and stabilisers, oil sensors, Position Sensors (CIPOS) such as steering or throttle position sensors and APSs (Accelerator Pedal Sensor), where we are one of the leaders in the global market,” added Gautam.
NEWS
Nabeel A Khan
SPARK Minda sees a huge growth in terms of upgradation from the basic audio systems to ones with touchscreen, mobile connectivity, navigation & TPMS and is looking to strengthen its footprint the in-car infotainment segment. The component manufacturer’s JV partners are already providing telematics solutions to companies in Europe for commercial vehicles and the company is looking to provide solutions to Indian OEMs and the aftermarket with the help of JV partner. It is continuing to explore merger and acquisition opportunities in telematics and navigation systems. “We plan to become a major player in this segment. We see the growth both in OEM and aftermarket on same platform. Although the current market scenario is a little bleak, but the silver lining, even in current scenario, is that sales of high-end
The consumer is getting tech savvy and is ready to adopt / spend on the new technology— Ashok Minda, CEO
Ashok Minda, Group Chief Executive Officer, Spark Minda Group
Minda to Spark in-car infotainment market with JVs, new tech
audio systems are increasing rapidly,” said Group Chief Executive Officer, Spark Minda Group, Ashok Minda to Aftermarket. Telematics and in-car navigation— defined as the exchange of information between a satellite, fixed on a mobile asset through a wireless communication device with the external world—is a tool that helps in enhancing driver experience. The company is also eyeing a breakthrough in technology to provide a low cost solution by integrating the fixed navigation to instrument cluster or central information display. This can extend the market to mid-size and entry level cars and reverse the scenario as more than 50 percent of the navigation system can be integrated unit. Presently, nearly 90 percent of the navigation systems are smart phones or portable devices, which are sold as aftermarket products. The electronic content in a car used be about 10 percent of the cost in 80s. The present car has about 35 percent of electronics
and is expected to be 50 percent in next 10 to 15 years. The global trend with regard to incar entertainment category is towards integration of devices and functionalities. After integrating various products like navigation, video, Bluetooth technology in one product that is wi-fi enabled. It is expected that in-car entertainment systems, which will work on in build wifi systems and transfer of music not only from within the car but from home or other cars. “The Indian market is catching up very fast with the changes, while new technologies are getting adopted both at OEM and aftermarket levels. New car models have been launched with integrated double-din touchscreen systems, which has in-built navigation, Bluetooth, parking assistance etc. Even A & B segment cars are now coming with company fitted systems. The consumer is also getting tech savvy and is ready to adopt / spend on the new technology,” Minda added.
SEPTEMBER 2012 AFTERMARKET
15
NEWS
Mitsubishi launches dealership in
Amritsar
(Left & Right) Uttam Bose Speaks At The Dealership Launch
Our Bureau
HINDUSTAN Motors Ltd (HML) launched its Mitsubishi dealership in Amritsar recently, thus bringing the number of dealerships in the country to 39 of which, 12 are located in north India. HML is already successfully running four Mitsubishi dealerships in Punjab. Those are located in Chandigarh, Ludhiana, Jalandhar and Mohali and its recent addition, the new dealership is called M/s Kapoor Motors. Speaking on the occasion, Managing Director, HM, Uttam Bose said, “Punjab has always nurtured a special fondness for the macho Mitsubishi sports utility
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vehicles. Our vehicles and the people of Punjab share the rare mix of strength and go-getter ability. The renowned automobiles appeal to the spirit of those who want to explore racing across the most difficult and challenging terrains. At the same time, our SUVs serve as most comfortable and luxurious modes of travel on city roads.” The dealership has 3S facility and is owned by Revant Kapoor, who has an MBA and comes from a family that is already involved in automotive business. The dealership is located in the heart of Amritsar on GT Road, NH 1. The showroom is spread over an area of 6,000 square feet with a service area
The Mitsubishi SUVs appeal to those who want to explore racing across challenging terrains. At the same time, our SUVs serve as luxurious modes of travel on city roads—Uttam Bose across 16,650 square feet with 14 bays and a capacity of servicing 25 vehicles a day. It also has 800-square feet space for spare parts. M/s Kapoor Motors employs 26 personnel—eight in sales department and 18 in service department. All of them are trained up to L1 and L2 standards.
NEWS
Hyundai oils Shell alliance for three years Our Bureau
HMIL has extended strategic agreement with Shell Lubricants, as its preferred lubricants supplier for next three years. In India, Shell Lubricants has been the preferred lubricant partner for HMIL since 2008. The association between Shell
Lubricants and Hyundai Motor India Limited (HMIL) has been forged since 2004. With more than three years of successful association, the extension of their strategic alliance till 2015 is a positive for the two automotive brands. Commenting upon the association, Country Head-Lubricants, Shell India Markets Pvt Limited, Nitin Prasad said, “We believe that the combined strength of the two global brands will continue
to benefit all Hyundai customers in India. Our people, technical superiority and customer collaboration helps Shell to develop practical solutions to address the toughest automotive challenges faced by our partners and our shared customers.” Shell Lubricants has been striving to provide world class services and satisfaction to all its partners and consumers and with this new development, the association and level of service only gets stronger. Innovation, world-class technology and technical partnerships are at the heart of Shell Lubricants.
SEPTEMBER 2012 AFTERMARKET
17
NEWS
Nabeel A Khan
NATIONAL Engineering Industries (NEI) is setting up a new bearings manufacturing facility in Gujarat with a capacity of around twenty million units per annum. The CK Birla Group company will invest around `500 crore in this highly automated facility in the next five years for catering to OEM and the aftermarket requirements. NEI, which manufactures and sells bearings under the brand ‘NBC Bearings’, is making this investment as part of its `700 crore investment plan to be implemented over the next five years that it had chalked out earlier this year. “We are planning to set up a new plant in Gujarat, the land for which will be finalised shortly. We expect that the production from this plant should start in the third quarter of the next financial year,” said President & Chief Executive Officer, NEI, Rohit Saboo.
NEI is making this investment as part of its `700 crore investment plan to be implemented over the next five years that it had chalked out earlier this year
NEI’s bearings plant to be operational by 2013 “The quality of material is extremely important in bearings. We are currently testing alternate materials ,which may be cheaper in the long run. These tests will take at least one and a half years to complete and only then we will be able to decide on alternate material,” Saboo added
Long Term Plans The decision to move to the western state of Gujarat comes as many of the customers including Hero MotoCorp, Tata Motors and Maruti Suzuki have either already built their units or are in the process of setting up of their respective plants. NEI hopes to increase the efficiency at the new plant at least by 15 percent because of the improvement in the process technology, new machine and high level of automation. The component maker is also looking at reducing the quantity of nickel to offset the increasing cost of raw materials.
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AFTERMARKET SEPTEMBER 2012
The company does think that the current blip will impact growth in the short run but in the long run, the Indian growth story is likely to remain intact. The company continues with its previously announced investment plans to be implemented in the next five years. The company is looking to invest around `500 in the Gujarat plant while the balance `200 crore will be invested in the existing three plants. It remains bullish and hopes that by 2016, it will be able to double its revenue to `2,000 crore.
The company is also looking at multiple suppliers of steel to avoid monopolistic pressure. Currently, it has two suppliers but hopes that in the near future it will develop more suppliers. Ironically, NEI has increased its exports to Europe even though the European economy is suffering. This is because the component manufacturer’s presence in Europe was relatively small. Now it is adding new customers in Europe and approximately 10 percent of the total exports is going to Europe. NEI claims to have maintained profit margins comparable to the industry and going forward, it is looking at value additions within its product ranges itself and not planning any diversification. The component maker has also increased its spending on R&D from less than 0.5 percent of its turnover in earlier years, to more than 1.25 percent in the current turnover.
SPECIAL REPORT
WITH shrinking resources, civilization is seeking refuge in new technologies and innovations, which at times provide solutions and at times, they fail. In the context of automobile retail, the biggest constraint, in the current times is unavailability of space, skyrocketing real estate prices and declining profit margins. The industry has been exploring a couple of new methods and techniques to undo the pressure that is impeding growth. On several platforms, dealers have unanimously recommended vertical expansion for the maximum utilisation of space. The success of the internet has also triggered a burning debate but could not do much to palliate the requirements of actual dealership. “By way of the internet, people only see information, and make comparisons but when it comes to buying, the customers rely on the real experience—like test driving and touch-and-feel experience,” President, Federation of Automobile
You can see how the car would look in the morning, afternoon, or at a parking bay. You can also select the colour and features; you can open the door and peep inside. The software provides comprehensive experience and some of them are even better than the actual dealerships—Dr Chandan Chowdhury, Managing Director-Dassault Systèmes India
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AFTERMARKET SEPTEMBER 2012
Will virtual wheeling reach its
destination? asks Nabeel A Khan
Dealers Associations (FADA), Nikunj Sanghi told Aftermarket.
The Virtual Showroom However, with the advent of newer technologies like 3D and high quality imaging, somewhat life-like experience is being offered. Recently, Mahindra & Mahindra introduced XUV 500 Virtual Experience Centre in New Delhi. The outlet is a showroom without any vehicles on display—not a temporary setup, but a company outlet. Visitors can see the vehicle on the screen in its actual size, in a life-like environment. “You can see how the car would look in the morning, afternoon, or at a parking bay. You can also select the
colour and features; you can open the door and peep inside. The software provides comprehensive experience and some of them are even better than the actual dealerships,” said Managing Director-Dassault Systèmes India, Dr Chandan Chowdhury.
Changing Consumer Preferences Recently, the Paris-based Dassault Systems, a world leader in 3D design, 3D digital mockups and Product Lifecycle Management (PLM) solutions, which provided the software support to the Mahindra & Mahindra virtual dealership in New Delhi, puts weightage on the immense potential for the virtual dealership concept in India.
SPECIAL REPORT
“We have seen that there has been dramatic increase in the cost of real estate in India and it will propel huge demand for virtual dealerships in the country. We hope that by the end of this year we will have more than 150 virtual dealerships in the country.” CEO, Enovia, Dassault Systemes, Andy Kalambi said. A recent survey conducted by Capgemini revealed increased interest in buying cars online, and a growing demand for new vehicles in mature
markets (66 percent, up from 61 percent in 2010). The study surveyed over 8,000 consumers in Brazil, China, France, Germany, India, Russia, the UK and the US provides a detailed analysis of CV buying behaviour around the world including shopping patterns, social media usage, online buying, green vehicles, customer interaction, aftersales and servicing. Key findings from this year’s study include the role of the internet and social media—
We have seen that there has been dramatic increase in the cost of real estate in India and it will propel huge demand for virtual dealerships in the country. We hope that by the end of this year we will have more than 150 virtual dealerships in the country— Andy Kalambi, CEO, Enovia, Dassault Systemes
putting consumers in the driving seat. Consumer internet behaviour, as well as the rise of tablets and smartphones are increasingly impacting the vehicle decision and buying processes, with price, guidance and product information continuing to be the primary features consumers’ research via the internet.
Future Potential “There is a potential for such outlets (virtual dealership) but it cannot match with the actual dealerships as people would like to have touch and feel experience and real test drive,” Sr Vice President, Sales & Marketing, Honda Siel Cars India (HSCI), Jnaneswar Sen said. He further added that the concept is worth exploring for HSCI. Executive Director, Maruti Suzuki India Limited, Shashank Srivastava, said that the virtual dealership with the help of digital technology can only support the actual dealership. The customers can get information on features, colours and other basics using virtual and digital showrooms, which will reduce the pressure on the sales person at the actual dealership. “Cars are probably the second biggest purchase of people, so they would like to have the first hand touch-and-feel experience. They would like to test the vehicle many times before buying so the actual dealership remains irreplaceable” Shrivastava signed off.
SEPTEMBER 2012 AFTERMARKET
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COVER STORY
Even as multi-brand service centres look to take the next step in their evolution, concerns and issues abound on the business models. Also on the cards are multi-pronged strategic plans to win customers’ trust with better service packages and enhanced penetration. Read on‌
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COVER STORY
Abhishek Parekh & Nabeel A Khan
MULTI-BRAND automotive servicing has been a relatively newer phenomenon in the auto sector. Their acceptance by customers could at best be termed mixed and at worst be termed as wanting. Some of the players who entered the business with the desire to break the stranglehold of OEM-authorised service stations and offer a viable proposition to customers, are still in the process of evolving their business models in order to remain viable. The business has turned out to be tougher than expected but players are continuing to pin their hopes on customers to give them a chance to serve. Industry players point out that multibrand servicing is still at a very nascent stage in India with around a percentage of total share or value of the car servicing business handled in the organised sector service centres as compared to around 25 to 30 percent share in developed countries. “Most customers are looking for a dependable and affordable place to service their vehicles (mainly cars) as opposed to choosing between extreme alternatives—high cost manufacturer authorised service stations versus unorganised local garages,” stated Chief Executive Officer, Mahindra
YVS Vijay Kumar, CEO, Mahindra FirstChoice Services
FirstChoice Services, YVS Vijay Kumar. One of the first players in the multibrand car service segment, Mahindra FirstChoice had its share of trial & errors and currently has around 12 centres including nine company-owned outlets. It is gearing up to be able to service around 60,000 to 70,000 cars per annum. The operating philosophy is faster turnaround while offering consistent service quality to attract and retain customers. It is aiming to grow the network to have around 50 to 60 franchisees and equal number of company-owned outlets over the next two years or so. “We are looking to have an equal share of company owned and franchisee run
service stations in the medium to long term. We aim to establish our presence and brand identity with retail customers and it has taken us some time to arrive at an optimal sized service station format that could possibly be replicated across the country,” he added. He elaborated that a multi-brand player in the car servicing business could require anywhere between 15,000 to 25,000 sq ft space with around 15-22 service bays to veer towards breakeven point and turn profitable. He pointed out that it has been a challenge for his company and for the sector as a whole, to establish itself given the fact that offering services at a lower cost, at times from prime locations in big cities, while maintaining
SEPTEMBER 2012 AFTERMARKET
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COVER STORY
Venu Donepudi & Vijay Gummadi, CarZ
consistently high service standards is a tricky proposition. Even though the industry is around half a decade in its existence, most players point out that it is still a struggle to win customers’ trust and confidence. Another major challenge is acquiring and maintaining technical competency despite a growing number of models and variants and limited or complete lack of
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support from OEMs. In fact, OEM apathy is also manifested with continuing restrictions on availability of spare parts in the open market. Despite significant improvements over the last few years, availability of spares for cars costing more than `five lakh continues to be restricted by some of the OEMs. “Availability of spare parts in the
Today, there are an estimated 20 million cars on the streets and we are adding more everyday. Only one third of these cars go to the authorised service stations. Post warranty car owners look for alternatives. That’s the opportunity we are looking to address— Venu Donepudi, CoFounder & Managing Director, CarZ open market, especially for premium cars is still a concern but the situation is only likely to positively improve towards wider availability and better transparency as OEMs are expected to
COVER STORY
be concerned about the servicing costs for the customers,” said Kumar. “Today, there are an estimated 20 million cars on the streets and we are adding more everyday. Only one-third of these cars go to authorised service stations. Post warranty car owners look for alternatives. That’s the opportunity we are looking to address,” Co-Founder & Managing Director, CarZ, Venu Donepudi told Aftermarket. Going by the above statistics, about 1.2 crore to 1.4 crore cars go outside the dealership network every year for aftersales services. The average spending on repair & maintenance on a car is around `10,000 in a year. Hence the total size of the aftermarket segment in India is close to `14,000 crore. CarZ hopes to reap a turnover of `20 crore this year thereby notching up a growth of around 400 percent compared to the pervious year and is looking to maintain this pace till 2018. It services around 16 cars on a given day, much below its capacity of around 42 cars. It currently operates 16 outlets spread across Karnataka, Andhra Pradesh, Kerala and Tamil Nadu. The company plans to add at least 30 outlets by next year, which will include entering new states like Gujarat and Maharashtra. CarZ was conceived by founder duo— Venu Donepudi and Vijay Gummadi in 2006 when they were working for GM in the US. After extensive research on the Indian automobile market, the partners found that that there was a huge untapped opportunity that lay for them to explore and hence they returned to India in 2008. The OEM dealerships have their hands full, as sales volume of the cars have been constantly growing every year. With India poised to be one of the largest customer base for auto majors, there has been a huge influx of cars, both high-end and mid-segment models on the India roads, that merit expert
handling. The company’s first service outlet was operational by February 2010 in Hyderabad with an investment of around `1.5 crore and the breakeven was achieved by April, 2010. CarZ is now looking to set up a nationwide presence in a plan that envisages having around 300 service outlets by 2018, for which, it has received a venture capital funding of $five million last year. It is looking to go the franchise route, wherein 70 percent of the outlets will be franchise outlets and the remaining would be company owned ones. Multi-brand service stations have already evolved to offer a range of repair services for all makes and models of cars like routine and preventive maintenance, electrical and mechanical repair, accident repair—denting and painting, tyres and services, battery, variety of styling and performance accessories, interiors and exterior detailing. “It is critical for a new player to establish brand equity in a segment that one may have chosen to enter and be seen by customers as a long term player. Building trust is the key,” said Managing Director, Carnation Auto, Jagdish Khattar. He added that there is adequate space for many more players to thrive in this business and the segment is likely to witness increased participation from overseas organised players in servicing and parts distribution business in the coming months. For newer players like CarZ, the biggest challenge continues to be the availability of real estate. It has been working on an asset light model by opting to have a long term lease rather than outright purchase of land. The second challenge is finding skilled manpower and it is trying to address this issue by opening only one workshop in, say a new Tier II city, and having a maximum strength is 25 people including 20 or so technical and five administrative staff.
Jagdish Khattar, MD, Carnation Auto
One of the positive aspects of the slower spread of multi-brand service stations are acceptability by insurance companies. Donepudi said that the third party service centre like his is a “sweetheart” for the insurance companies. “They just love us because we are about 30 to 40 percent lower in terms of pricing than the authorised service stations of OEMs,” he explained. But lower cost does not automatically translate into higher business as most multi-brand service providers are realising to their disappointment. Customers need to opt for a multi-brand service station over a company authorised service shop for accidental repairs or other such jobs. “Insurance companies are gradually realising the potential of multi-brand service stations and the benefits they can bestow on the customers in terms of lower cost of repairs and maintenance. But it would be unrealistic to expect an overnight change of attitudes on part of customers. They need to have sufficient confidence to come to us for claiming insurance reimbursement for their vehicles. We need to collectively address this challenge,” said Vijay Kumar of Mahindra FirstChoice. Though potential for multi-brand auto service is immense, it may be a while before players are able to find a foothold and settle in the ‘promised’ land.
SEPTEMBER 2012 AFTERMARKET
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IN CONVERSATION
“Our job is to help our customers experience the difference of being a Mercedes owner� Mercedes-Benz India has already been present in the country for around two decades. It has established a wide and reliable service network across major towns and cities. Director, After Sales, Retail Training, Homologation, Member of the Board, Mercedes-Benz India Pvt Ltd, Devdutta Chandavarkar speaks to Aftermarket on the nuances of setting up a luxury car service network and his outlook for the automotive service industry.
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IN CONVERSATION
Abhishek Parekh
How do you rate the aftersales infrastructure for luxury cars? The growing market has made it imperative for car manufacturers (and especially luxury car makers) to focus attention on aftersales services. In fact, the importance that Mercedes attaches to aftersales services can be gauged from the fact that the head of aftersales services is part of the management boards, globally and in India. Aftersales service is an independent vertical for Daimler globally and we attach importance to aftersales service in the manner very few automobile manufacturers would do and this has been a major factor in helping us achieve a sustainable market share in many countries globally. We have elaborate systems and processes for catering to specific requirements of customers in the premium or luxury segment and people are key to these processes. What has been the major change for Mercedes in the aftersales arena in India over the years? One of the major changes is that we have been able to train and develop experienced technicians or professionals for delivering our aftersales services. When we started in India in a major way around 1996, technicians for repairing luxury cars were just not available. We had major issues with finding trained technicians for many tasks at our service centres. Even a decade ago, many of our service centres were manned by expatriates to deliver a consistent service experience to customers. With strategies and consistent efforts, the situation has improved for us to such an extent that technicians working in India are competing with their counterparts globally within and outside Mercedes network and Indian technicians
are amongst top five in more than 52 markets for Mercedes globally in terms of technical competency, service delivery and other aspects of aftersales services. What has this competence level meant for you? For any luxury car manufacturer, it is important that a customer gets consistent services at various locations within a market. Also the vehicle needs to be in the best of the condition for most of its productive life with the owner. Hence the major part of our job as a luxury car manufacturer is to ensure top-of-the-line aftersales services to help our customers experience the difference of being a Mercedes owner. What efforts have you made to achieve the desired level of competency at your service centres? One of the major issues that we have had to tackle (and are still facing) is that the education and training curriculum at many of the ITIs, vocational training institutes and even engineering colleges is so outdated that students are not competent to handle any vehicle. It has taken us significant efforts to train and retrain people in the aftersales division to meet our expectations. We have tied up with engineering colleges and polytechnic institutions in couple of locations and are looking for more such public private partnership in order to source qualified people. We offer programmes like ‘Advanced Diploma in Automotive Mechatronics’ (ADAM) at institutes in Pune and Aurangabad. The students can complete their regular diploma or degree at these institutes and join the advanced diploma programme for one year and have the option of joining us or any other automobile brand. Over the next seven to ten years, we are
expecting entrepreneurs to be created through such a system and aid in the growth and development of the automotive service business in India. What is your view on the growth of multi-brand service stations in India? Multi-brand ser vice net works are majorly entrenched in developed countries. It is a newer concept here and has a long way to go. The biggest issue is trained manpower. It is very difficult to find a technician who can handle a car manufactured by Mercedes or BMW or Audi, and deliver the expected level of service satisfaction to any customer. One can have the latest garage equipments and technology at the service stations but without adequately trained people, it is like having a body without a soul. Moreover, we have been witnessing multiple generations of a car model, especially in the premium segment, being brought to a service station every other day. The models are significantly different in terms of features and controls and require competent handling. What are the network expansion plans of Mercedes in India? We are looking to have a mix of small, medium and large sized service stations in India at various locations. We typically enter a new location with a small workshop and then gradually expand our presence with bigger service and sales outlets depending on the potential of the location. A small service station is capable of handling four to five cars a day while a medium or large sized workshops -that would adopt an ‘auto house format’ -could handle 15 to 20 or more cars a day, with a sales outlet. Infrastructure and manpower continues to be a challenge and will remain so in the coming years.
SEPTEMBER 2012 AFTERMARKET
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SPECIAL REPORT
Ten billion dollar opportunity for
Indian aftermarket Jagdev Kalsi
INDIAN component manufacturers can avail over $10 billion opportunity in the US aftermarket provided they match China’s current share amongst Low Cost Country (LCC) imports, according to a recent study conducted by AT Kearney. Currently, China accounts for 3.6 percent share of total imports by US while those from India stand at a mere 0.2 percent. On India’s presence in the US aftermarket and its entry in the US, Senior Manager, Automotive Practice, AT Kearney, Kaustav Sen said, “India is nearly non-existent in the current US aftermarket. A partnership with speciality retailer or programme groups can give component manufacturers a potential entry in the US aftermarket.” Any dilemma if ever existed on the quality of Indian parts or components, President, ACMA, Arvind Kapur cleared when he said, “Today, 80 percent of the components and parts production goes to OEMs and Tier Is. It reflects the quality of parts OEs are producing. They are used to the system and therefore can take advantage of global aftermarket.” Supporting AT Kearney’s study, a prospective study from Frost & Sullivan throws light on decreasing OE and aftermarket parts sourced from suppliers in the US in the last 10 years. On the contrary, countries like Japan, China, Germany, Korea, Mexico and Canada have become main exporters of auto parts. In order to capitalise on the US aftermarket, Indian suppliers need to focus on some key areas. Expanding aftermarket portfolio is the first step to be taken wherein the Indian suppliers
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need to focus on becoming system suppliers rather than components or parts suppliers. Another approach can be to diversify as per the demands in the respective market. Frost & Sullivan sees a growing demand for tyres, body parts,
India is nearly nonexistent in the current US aftermarket. A partnership with speciality retailer or programme groups can give component manufacturers a potential entry in the US aftermarket—Kaustav Sen, Senior Manager, Automotive Practice, AT Kearney
brake parts and batteries in the North American market. Maintaining a diverse parts portfolio however comes with its own share of problems like higher inventory levels and distribution costs, inventory obsolescence owing to rapid pace of innovation and makes the supply chain stiff due to longer order response times. However, AT Kearney suggests counter measures like rationalising low value or low volume parts and outsourcing them completely from third parties in order to deal with the situation. On the contribution of SMEs towards growth of larger industries, Joint Secretary, Ministry of Micro, Small and Medium Enterprises, Government of India, CK Mishra said, “SMEs can help and stand and try to see how to push aftermarket globally. Contribution of SMEs to large industry units is vital”. Secondly, Indian suppliers need to focus on OE supplies and aftermarket supplies
SPECIAL REPORT
equally rather than being OE-centric. As per AT Kearney’s findings, integrated retail channel and programme group distribution channel have relative ease of penetration, average margins and uncomplicated channels. However, penetrating OE
replacement channel remains the toughest. Thereby, a shift of focus is necessary for component and part manufacturers. Thirdly, bigger SME pools need to be created in order to flex manufacturing setup that will further support the
above findings. For conventional OEM orders, suppliers can optimise resource utilisation while lead time can be reduced for aftermarket orders. Another territory that can prove advantageous for component manufacturers is introduction of their private labels in the US aftermarket and supplying them to programme groups or large retailers which thereby benefit from increased reach and scale. Additionally, the US aftermarket also remains a risk-free option considering its steady growth (two-three percent CAGR) instead of the undulating OE market that is more prone to ups and downs. Year 2012 has also seen the average age of car fleet reach an unprecedented level of 10.8 years. Between 2007-10, aftermarket in North America continued to grow despite the economic recession, as per Frost & Sullivan study. It is also expected that the US aftermarket to grow with a CAGR of 2.1 percent for the next seven years.
SEPTEMBER 2012 AFTERMARKET
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INSIGHT & OUTLOOK
Capturing the automotive aftermarket winds The customer perspective: Increasing choices Michael Book, Eric Ellul Cornelia Ernst, Benjamin Frowein, Ewald Kreid, Rafael Rilo, Georg Sticher & Hadi Zablit
SINCE June 19, 2011, the automobile industry in Europe has been subject to EU Regulation 566/2011, according to which, manufacturers are obligated to release electronic data enabling the exact identification of replacement parts for
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vehicles. This will further strengthen the position of independent service providers in the aftermarket sector, a sector that includes automotive services, parts, and the maintenance business. In the future, independent operators will thus have the same access to electronic repair and diagnostic information enjoyed by authorised repair shops. With this, the EU Commission is systematically following the path it has
pursued since the turn of the century with a variety of regulatory amendments (eg 1400/2002; 715/2007; 692/2008; 595/2009; 461/2010; 64/2012). The goal is to create a competitive landscape in Europe in which independent repair shops and authorised repair shops compete to serve different customer needs and segments. The idea is to strengthen the customer’s position and to encourage intense competition on all
INSIGHT & OUTLOOK
levels of the repair and parts value chain. So far, the Commission seems to have been successful in realising this goal: Independent service providers have in recent years further expanded their parts and service businesses at the expense of OEM; traditional authorised repair shops are experiencing (price) pressure from large independent service providers; and in the meantime, non-traditional players have also entered the market: Insurers, fleet operators, and leasing firms have long since begun to strike exclusive agreements with independent repair shops, effectively lowering their costs and channelling customers to contractually agreed independent service providers. Brisk competition and price pressure have been advantageous for European customers. The European aftermarket has thus been transformed, in terms not only of prices, but also of customer satisfaction—just as the EU Commission wanted. In summer 2011, the European Automobile Manufacturers Association (ACEA) contracted BCG to perform
a detailed analysis of the aftermarket in Europe with the view to establishing the facts around the state of competition in the sector and overall customer satisfaction in this area. BCG has investigated the current market dynamics and identified trends that will shape the coming decade. Our analysis was based on three central questions currently being asked by both market players and the EU Commission: How do customers benefit from the changes? How intense is competition now? And in what direction will the market develop? Building on our industry expertise we conducted extensive interviews with automotive industry experts from across the aftermarket business spectrum. A statistically relevant survey of over 1,500 customers in five European countries— Germany, France, Spain, Great Britain, and Poland—provided the customer perspective. Analysing the results, we developed forecasts about the trends that will characterise the market. Based on these results, we were able to identify opportunities and challenges facing the
various market players. Within the highly fragmented overall market for automotive services, two channels can be differentiated: The first, the “authorised” channel, is comprised of vehicle manufacturers (VMs), their country organisations, dealer networks, and repair shops, both single- and multibrand. The second, “independent” channel is comprised independent service providers (or independent operators). The central players in wholesale are independent distributors and purchasing networks comprising numerous players that join forces to bundle volume and realise better prices. Finally, the independent channel also includes companies that collect, process, and sell data. On the retail level, independent service providers can be broken down into three types of repair shops: (1) franchises that offer a full range of services and are part of a dealer network or franchise system; (2) automotive centres and “fast fitters,” ie repair shops with standardised and often limited service offers that frequently include parts retail; and finally, (3) small, “corner” repair shops that offer the full range of services and function completely independently.
High Quality, Lower Costs European drivers are profiting from increased market transparency and lower service costs. The cost of auto repairs and parts has declined steadily in Germany in recent years: From 2003 to 2010, maintenance costs per year and vehicle sank by an average of 21 percent. This significant reduction is less the result of intensified competition among service providers than of better-quality parts and thus longer maintenance intervals. At the same time, the cost of parts has risen only slightly. In addition to cost advantages, the structural developments in the aftermarket have made for a highly transparent market. For each repair
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INSIGHT & OUTLOOK
repair shops. In seven of the ten criteria for customer satisfaction, these repair shops came out on top. Customers especially like the value for money in the independent channel.
Decreasing Customer Loyalty Over Time
or service event, customers can choose the offer that best fits their individual requirements and personal criteria. This level of market transparency and the steady decline of costs have resulted in high customer satisfaction. Nearly all of the surveyed customers indicated that they are highly satisfied or satisfied with the performance of their repair shops, including initial price quote, final price paid, time to get an appointment, value for money, time needed for repairs, different part options, technical quality, and adherence to schedule. The survey showed which criteria are most important for customers to select a repair shop: At the top of the list are value for money and parts quality. Customers feel that they get the best value for their money from automotive centres, fast fitters, and independent repair shops, but when it comes to parts quality, customers prefer franchise repair shops and traditional authorised repair shops.
Wide Recognition Of Branded Chains Customers are well aware of the wide range of service offers: Our survey, which
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was conducted in summer 2011, shows that nearly all European car drivers— nine out of ten—know the names of the big independent service providers in Western European countries. Of the independent service providers, Carglass is the most well-known brand in France, with name recognition of 90 percent. In Spain and Great Britain Kwik-Fit is the most recognised with 86 percent recognition, and in Germany A.T.U is the most recognized with 85 percent recognition. Brand name recognition is considerably lower in Poland than in the surveyed Western European countries: Only every third respondent knows Autoglass, the most familiar service chain there. The reason for the low market penetration of large independent service providers in Poland is the country’s still highly fragmented market, characterised by small independent repair shops. Across all countries, Carglass is the most widely known player, showing highest or second highest awareness level of customers. Broad satisfaction across all channels Customers in Western Europe favour independent
After purchasing a vehicle, many customers first stay with an authorised repair shop. Loyalty to authorised repair shops is highest among newvehicle owners and business customers. Reliability, good quality, and warranty are the reasons that two thirds of these respondents named for taking their vehicles to authorised repair shops when they need repairs or maintenance. But a different picture emerges among owners of used and older vehicles. The majority favour independent repair shops—with price as the deciding factor. This also goes for loyalty to a certain repair shop; generally, customer loyalty is strongly influenced by price, while “soft factors” such as time needed for repairs, service quality, and time needed to get an appointment are additional “nice-tohave” factors that are seldom central to decisions to switch repair shops. Customer loyalty is significantly higher in markets that are less consolidated. In Poland and Spain, trust and a personal relationship count even more than price; here, unlike in Germany and France, the willingness to switch repair shops declines with the age of the vehicle rather than increasing. Overall, the results of the customer survey make it clear that the aftermarket in Europe has changed dramatically for the better for vehicle owners and drivers—numerous service providers with different strengths offer customers a wide service selection based on their personal priorities and specific requirements. The introduction of new vehicle materials such as aluminium, carbon, and UV paint require special tools,
INSIGHT & OUTLOOK
instruments, and increased training requirements as well. Smaller independent operators are not equipped to surmount these obstacles and are forced to either exit the market or to join a larger franchise. In Germany, the number of small independent repair shops has been sinking for years, even though the “death rate” has slowed considerably. With a total of ~ 38,000 repair shops in Germany in 2010 (~ 18,000 of them authorised and ~ 20,000 independent), the decline from 2009 to 2010 was 0.8 percent for authorised repair shops and 0.5 percent for independent repair shops.
operators have a market share of 30 percent (measured by number of outlets), has the highest level of concentration—with an 11-percent increase since 2007. Similarly, the level of concentration in France is 29 percent. The aftermarket in UK, Spain, and Poland is less concentrated: In UK, the ten largest players have a market share of 16 percent, in Spain 13 percent (an 18 percent increase since 2007), and in Poland 12 percent (for a nine percent increase since 2007). In the coming decade, concentration in these countries is expected to rise to the level in Germany and France. Consolidation on the retail level is
Cost Advantages
sides. Market volume growth in Western Europe is not expected in coming years: Vehicle density is already so high that the number of vehicles can hardly change significantly. Of the countries analyzed for the study, only Poland can be seen as a growth market. Its comparatively low market volume—only 10 percent of the German market—will grow at a rate of 5.7 percent per year in nominal terms—until it is on a par with Western European countries. Furthermore, intense competition and increasing market transparency will mean constant or even slightly lower average annual service costs per vehicle. Another factor in the rising competitive pressure in automotive services are the technical developments in vehicle manufacturing and parts production. Improved parts quality will mean longer part lifetimes and accordingly longer service and repair intervals. At the same time, repair shops will also need to invest to address the rise in vehicle electronics. This applies both to information requirements and to ongoing training for employees to stay up to date on technical developments. Longer term, electrical vehicles and hybrids—which require considerably less maintenance than traditional combustion motors—will further change the automotive services market. Along the entire value chain and range of services, the competitive situation for repair shops will intensify. This goes for both authorised repair shops as well as for independent service providers and chains, which will be able to expand their market shares only with squeeze-out competition. Creative strategies will be needed to address the opportunities and risks of market developments early on.
The clear winners in the independent channel are big service chains. Franchise operations, fast fitters, and automotive centres have three major advantages: (1) Due to their size, they have accordingly larger purchasing volumes, which they are able to translate into cost advantages and pass on to customers as lower prices. (2) to 2010, from three to 15 percent; during the same period in the Netherlands, the share of exclusive contract repairs rose from 45 to 65 percent. This phenomenon poses new challenges for both traditional players in the market and for the costumers themselves who have little or no choice with regard to repair shop selection, and the parts used for repair. Traditional factors such as vehicle age and customer personal choice have less and less influence. In today’s environment, it is primarily the independent repair shops that are profiting from partnerships with insurers, fleet operators, and leasing firms. Authorised repair shops lag behind and their current market share will slide unless they find an entré into this segment.
the result not only of organic growth, but primarily as a consequence of the brisk pace of M&A activities. In 2011, for instance, the Japanese tire specialist Itochu Group acquired 1,500 Kwik-Fit locations from the British fast fitter in order to gain access to its market.
Increasing Consolidation
Competitive Pressure
Opportunities For Independent Repair Shops
Intense competition is accelerating industry concentration. The German market, where the top ten independent
In the decade until 2020, the European automotive services market will continue to come under pressure from various
Independent repair shops and chains have a number of options for securing their future market positions. They can
Loyalty to authorised repair shops is highest among new-vehicle owners and business customers. However, the majority favour independent repair shops—with price as the deciding factor. While “soft factors” such as repair time, service quality are additional “nice-tohave” factors that are seldom central to decisions to switch repair shops
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INSIGHT & OUTLOOK
are perceived by customers as a guarantee for quality and thus enjoy their trust. As affiliates of the OEMs, they also profit in regard to new technologies, such as new, fuel-efficient drive technologies and electronics. Continuing advances in “networked vehicle communications” also represent an opportunity to strengthen customer loyalty and earn points for offers of remote diagnosis and other services. This will be an important factor when longer service intervals in the initial years after the purchase of a new vehicle could have a negative effect on customer loyalty to OEMs.
Trends In Competitive Environment
strengthen their procurement power by forming large purchasing alliances, thus retaining their most important competitive advantage—cost leadership. They can profit from rising price awareness among customers who—as in many other sectors—are increasingly better informed about quality and value for money, and consequently in a position to select the best offer for every type of repair and service. Because many independent providers do not offer a full range of services, they can follow a competitive strategy of specialising on either services with higher margins or services with high volume; authorised repair shops, in contrast, usually offer a full range of repair and maintenance services. Perceived gaps in quality (from the customer perspective) between independent and authorised repair shops will probably also narrow: Study results show that many independent repair shops and chains are becoming increasingly professional, thanks to better access to repair and maintenance information,
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better parts logistics, and investments in diagnostics technology.
Opportunities For Authorised Repair Shops In coming years, OEMs and their authorised repair shops will actively use cost and price strategies to assert themselves in the highly competitive market. Customers perceive authorised repair shops as being considerably more expensive than independent repair shops. The development of strategies that enable attractive prices for customers while simultaneously avoiding the erosion of margins may be one of the biggest challenges of the service business for OEMs. Also, they and their service networks belong to large companies: In competing with small, flexible, and agile service providers, they will face a different set of challenges when it comes to aligning their business models, price strategies, and service offers to the needs of the market. OEMs and their authorised repair shops will have to focus on consistently utilising their current competitive strengths: They
We believe that the development of the competitive landscape will allow independent service providers to expand their market share, though slightly. Thanks to their cost advantages, they are in the best position to address customers’ increasing price awareness. This applies primarily to large independent service chains. Small independent repair shops will be increasingly challenged by knowhow and investment barriers, so that we see a further decrease in outlet numbers until 2020. Also, longer maintenance intervals and generally higher quality will have a negative effect on customer loyalty to authorised repair shops. And non-traditional market players such as insurers, fleet operators, and leasing firms will partner primarily with independent service providers in order to reduce their own costs. In Western European markets, the market share of independent service providers will rise by up to 6 percent. Only the market in Poland, where independent repair shops enjoy a traditionally high market share of 70 percent, is expected to remain stable in this regard. (Authors work with Boston Consulting Group. Reprinted with permission)
FACILITY VISIT
Auto Hanger hits milestone with
new workshop
The New Auto Hanger Workshop
Abhishek Parekh
THE wheel turned full circle for Mumbai-based Mariwala family with the opening of largest workshop for Mercedes in Andheri East, a Mumbai suburb. Auto Hanger started as a workshop for servicing Mercedes cars in Mumbai way back in 1991 and is now hoping to take luxury car servicing standards to a different level with largest of its kind workshop for Mercedes in India. Spread over a lakh sq ft, Auto Hangar’s new workshop has around 54 service bays and has been set up with an investment of around `52 crore. Located in an industrial area in suburban Mumbai, the service centre is capable of offering
round the clock servicing. “Our priority is to cater to growing population of Mercedes car owners in and around Mumbai and in the western region with faster turnaround time. We are also looking to offer single or set of services rather than full servicing to enable owners to take their car within few hours, if required,” said Managing Director, Auto Hanger (India) Pvt Ltd, Mohan Mariwala. He pointed out that there is an estimated population of around 7,000 Mercedes cars in Mumbai and Thane alone and there is a dire need for servicing these vehicles. Moreover, the workshop is also gearing up to meet the needs of neighbouring cities with
Auto Hanger is to provide specialised and quick turnaround services for its customers. Mercedes is to offer its globally benchmarked services at the workshop that could work as a laboratory for service innovation in India before wider adoption across other centres in the country
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FACILITY VISIT
sizeable Mercedes car owners like Pune, Nashik and Ahmednagar as well as Kolhapur and Aurangabad. Mariwala added that the workshop is looking to provide specialised and quick turnaround service options for its customers. Mercedes would also be looking to offer its globally benchmarked service at the workshop and it could serve as a laboratory for service innovation in India before wider adoption across other centres in the country. “Many of our existing dealers started their journey with us as our service partners before establishing dealerships to sell our cars. As our car population grows, we are likely to see many more entrepreneurial ventures in the car servicing business. We are bracing up for more innovative service models in the luxury car segment in the coming years in India,” said Director, After Sales, Retail Training, Homologation, Member of the Board of Management, Mercedes Benz India Pvt Ltd, Devdutta Chandavarkar. The workshop will provide service, general repairs, body repairs, paint job, wheel alignment, wheel balancing, tyre change, car wash, polishing and other specialised services. It is also capable of providing advanced services like remote sensing diagnosis used by Mercedes-
Benz globally. The workshop will employ around 155 personnel. Auto Hangar (India) is a leading automobile dealership group based in Mumbai established in 1991 by JV Mariwala’s family. Over the last two decades, it has gradually spread its wings to cater to the sales and servicing needs of premium auto brands including Lamborghini, Mercedes Benz and Honda. Mariwala family is engaged in businesses like food ingredients, spices and spice extraction. Auto Hangar is the group’s first venture outside the food industry and is managed by Mohan Mariwala, who had had several years of experience in sales and service of luxury brands in India and the US. The other dealerships of the Group include Lamborghini Mumbai, Linkway Honda, Redline Automotive, the insurance division of the Auto Hangar Group. Redline Automotive is also an authorised dealer for Ashok Leyland commercial vehicles. The Group also owns Auto Hangar Pre-Owned Cars catering to clientele aspiring to upgrade their existing vehicle by trading it in for a newer model. Auto Hanger has been awarded Mercedes Benz’s ‘Best After Sales Service’ award in 2003. Linkway Honda
(Centre) Peter Honegg, MD & & CEO Mercedes-Benz India At The Launch Of Auto Hanger, Mumbai
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Many of our existing dealers started their journey with us as our service partners before establishing dealerships to sell our cars. As our car population grows, we are likely to see many more entrepreneurial ventures in the car servicing business—Devdutta Chandavarkar has also received Honda’s Gold award for ‘Best Overall Performer’ in the same year. Mercedes Benz is looking to maintain its service edge and already has the biggest service network among luxury car manufacturers in India owing to its long standing presence in the Indian market. Mercedes-Benz is present across 31 Indian cities through its 72 touchpoints. Located at Saki Vihar Road, Andheri East, the new workshop of Auto Hangar is easily accessible from the West East and Eastern Express Highway. Mariwala said, “Increasingly the need for a world-class servicing facility will define the way luxury car purchase is going to evolve in India.” Mercedes-Benz has one of the densest networks among luxury car manufacturers in India owing to its long standing presence in the Indian market. It is already present across 31 cities through its 72 touchpoints. Many of the full scale service centres offer facilities like the Star Lounge, the Star Lease, organising Star Drive, opening of Trendz concept stores, inauguration of AMG Driving Academy at BIC and rollingout of Star Showcase across the country; Mercedes-Benz remains confident of its strong traction and steady growth and further expanding its footprint in the dynamic Indian market.
INSIGHT & OUTLOOK
Used car sales to treble by 2016-17 Ajay Srinivasan, Director & Hetal Gandhi, Associate Director
USED car sales are expected to treble by 2016-17, with there being just almost two cars for every new car by that year. This is as compared to one used car for every new car in 2006-07. A host of factors will spur the growth in sales. As car owners increasingly prefer newer models, replacement cycles for cars have been declining over the past ďŹ ve years. Lower prices of used cars present an attractive proposition to price-conscious buyers. The increasing presence of organised used car companies will also continue to drive used car sales. Besides aiding growth in sales, organised players will provide their dealers alternate income avenues and help them sustain competitive pressures in the new car business.
Used car sales expected to reach about CRISIL Research expects annual used car sales to treble to about eight million units by 2016-17. The size of the used car market is also likely to grow threefold to about `1.5 trillion during the period. In the preceding ďŹ ve-year period, used car sales had doubled to 2.6 million units in volume, and had grown four-fold to `520 billion in value (In line with trends seen in new cars, within the used car market too, small cars accounted for two-thirds of the total sales as of 2011-12). The ratio of new car to used car sales is expected to reach 1:1.8 by 2016-17 from 1:1.3 in 2011-12. However, this is still lower as compared to developed markets.
A continuing decline in replacement cycles of cars will spur the growth in used car sales. With carmakers releasing about 10 models in each of the past ďŹ ve years, car owners switched over to these models faster. Average replacement cycle therefore fell from about 54 months in 2006-07 to about 48 months in 2011-12. As carmakers promote sales of new models through exchange oers for old cars, replacement cycles are likely to further fall to about 42 months by 2016-17.
On an average, the price of four-year old used car is about 40 percent lesser than a corresponding new car. Lower prices allow price-conscious Indian buyers to opt for models across segments: buy a used sedan instead of a similarlypriced new small car.
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INSIGHT & OUTLOOK
organised dealers’ gain market share As of 2006-07, there were only one or two organised used car companies, including Maruti True Value. Unorganised players dominated the market with an over 96 per cent share. Gradually, other OEMs realised that the used car business allowed them to provide consumers with a prompt exchange option at the point of purchase and at the same time boost sales of new models. As dealers face competition in the new car business, OEM-led used car companies provide them alternate income avenues and also help sustain competitive pressures. Thus, by 2011-12, the number of organised used car companies increased to 12. This pushed up their share in domestic used car sales to 16 percent in 2011-12. CRISIL Research expects that organised used car companies, mainly led by OEMs, will have a 25 percent share by 2016-17. Organised used car companies include independent players like Carnation and OEM-led companies like Maruti True Value, Ford Assured, Mahindra First Choice, etc. The presence of
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The price of four-year old used car is about 40 percent lesser than a corresponding new car. Lower prices allow price-conscious Indian buyers to opt for models across segments these companies will aid the decline in replacement cycles of cars, as they usually receive used cars in lieu of new car sales. Used car transactions will also become more transparent with the entry of these companies. These companies ensure fair prices for buyers/ sellers. To boost buyer conďŹ dence, dealers have also started oering a warranty of six-12 months on used cars. At times, OEM-led dealers may not want to certify used cars that do not comply with their standards. In such cases, an organised dealer may sell such cars at a low margin to unorganised dealers.
! " # New Cars
The used car business is a proďŹ table proposition for dealers. CRISIL Research estimates that gross margins for dealers in the used car business are double the margins earned on new car sales. For instance, a fouryear old compact car can fetches gross margins of six-eight percent, as against a similar new car that will fetch twofour percent. Presence in the used car business also helps dealers shield risks to margins, especially during a down cycle when new cars sales may be aected. In case of used cars, dealers also have a higher bargaining power—determining the price at which the used car is purchased. In case of new cars, dealers may prefer to trade o their margins expecting incentives from both manufacturers and ďŹ nanciers, or in lieu of potential service income expected from the customer.
$ % Cautious Finance penetration in the used car market has been traditionally lower, as the credit proďŹ le of used car buyers is relatively weaker than new car buyers. Disbursements for used cars by organised ďŹ nanciers (banks, NBFCs and captive ďŹ nance companies) are expected to record a 20 percent CAGR in the next ďŹ ve years in line with the growth in used car sales. Organised ďŹ nanciers will however maintain a cautious approach, as a large part of the used car market remains unorganised. CRISIL Research thus believes that the used car market presents a huge opportunity for carmakers, aspirant buyers and dealers. „ (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.)
CUTTING EDGE
Advanced CV safety technologies to be showcased at IAA CONTINENTAL is set to unveil technologies, products and services, with which, the manufacturers of commercial vehicles can make their vehicles safer, more economical and cleaner, as well as network them more intelligently with focus on economy and efficiency at this year’s IAA to be held this month. Some of the technologies include driver
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assistance and braking systems, vehicle networking and operating concepts, drive technologies, sensors, interior trim materials and tyres. “Only when trucks, vans or buses are less involved in accidents, keep their fuel consumption as low as possible and have clever data exchange with the driver and environment, can they actually be
operated economically with reduced operating costs and thereby achieve the effectively lowest overall costs,” said Chairman of the Executive Board, Continental, Dr Elmar Degenhart. The company will display tyres of the third generation that would be gradually introduced to the market from mid-2013. These third generation
CUTTING EDGE
tyres will simplify the work of those in charge of vehicle fleets—from tyre selection to service solutions. The company’s fleet management system Conti 360° Fleet Services offers modular services, which enable individual and expert tyre management specific to the needs of the customers. The fleet operator thus ensures that the condition of his vehicles’ tyres is constantly optimised, the administrative workload and expenses are low, and the costs are easily calculable. Meanwhile, the mobility service for fleets with international operations is available in 13 European countries. In the ‘Safety’ megatrend area at the company’s booth at the IAA, the focus is on driver assistance and braking systems. The highlight is the MK 100 ESC XT electronic braking system, which Continental will present at the IAA for the first time. Volume production of the system is slated to get underway in 2015. It is an extension of the modular and scalable MK 100 product family, which allows the use of the Anti-Lock Braking System (ABS) and electronic stability control (ESC) in all vehicle
Continental’s fleet management system that will be displayed at IAA is Conti 360° Fleet catering to individuals and tyre experts specific to their needs. The fleet operator ensures that the condition of his vehicles’ tyres is constantly optimised, the administrative workload and expenses are low, and the costs are easily calculable
categories and thereby even saves space and weight. The MK 100 ESC XT was specially developed for heavy vehicles or vehicles transporting heavy loads with a focus on supporting active safety by enhancing braking dynamics. The MK 100 ESC XT thus offers all standard ESC functions right up to adaptive cruise control (ACC) and, as an extra in the premium versions, full speed range ACC (FSA). The premium version can be used in hybrid vehicles with an efficiency of 98 percent in braking energy recovery. This offers the customers full installation compatibility for ICVs and hybrids.
Reducing Emissions Products and solutions aimed at reducing CO2 emissions are presented in the ‘Environment’ megatrend area. The company is hoping to demonstrate systems expertise with solutions for exhaust gas aftertreatment, which help in complying with exhaust standards such as Euro VI (2013) and US10 / Tier4f. The selective catalytic reduction (SCR) of nitrogen oxides (NOx) and diesel particulate filters (DPF), which remove particulate emissions from truck exhaust fumes, play a key role. In SCR, a watery urea solution (AdBlue) is injected in the exhaust gas flow to be able to transform nitrogen oxides in a catalytic converter. Continental delivers important components for this purpose: From 2013 onward, newly developed AdBlue injectors with air cooling for light-duty use will enter mass production. At the same time, Continental is developing a water-cooled version for use in trucks. ContiTech’s heatable hose line modules also form part of the SCR systems expertise. The newly developed fuel quality sensor can be used to determine the quality of fuel and thus optimize fuel injection. New types of air spring
The company will display third generation tyres that would be gradually introduced to the market from mid-2013. These third generation tyres will simplify the work of those in charge of vehicle fleets—from tyre selection to service solutions
systems with plastic pistons save up to 12 kilograms of weight per axle and thus cut fuel consumption. The use of renewable resources for interior trim materials in driver’s cabs is an additional contribution to a more environmentfriendly vehicle. The ‘Information’ megatrend area is primarily devoted to vehicle networking and operating concepts. The company will be presenting an intelligent camera system for commercial vehicles at the IAA. With this camera system, the driver receives 360-degree visibility around his commercial vehicle in real time. This will help truck drivers during manoeuvring, bus drivers during safe departure from crowded bus stops and drivers of construction vehicles in the centimetre-accurate positioning of their machines. An efficient control computer that adds up the digital signals of the cameras to a 2D or 3D image works in the background. The new system thus gives the commercial vehicle driver an optimum bird’s-eye view in critical situations. Continental is a leading supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers.
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GLOBAL
Ford’s vehicle range boosts
fleet sales leadership
FORD'S UK fleet business is reaping the benefits of the company's vehicle range, as car sales accelerate. Ford's total fleet vehicle sales—comprising 95,752 cars and 32,654 vans—make up 62 percent of Ford's total vehicle sales. The Ford Dagenham-built 1.6-litre TDCi engine is the UK's most popular engine choice for fleet managers and accounts for 25 percent of Ford fleet car sales for the year to date. The Ford C-Max has seen the largest growth in Ford's fleet car sales with a 22 percent increase for the year to date, compared with 2011. The Ford Galaxy is close behind with a 20 percent rise. Further, fleet sales increases have been
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recorded by the Ford Fiesta, Focus and Mondeo with sales up seven percent, three percent and three percent, respectively, for the year to date, compared with 2011. The new Ford B-Max is now on sale and is expected to record over 6,000 fleet sales in its first full year. Ford of Britain Fleet Director, Kevin Griffin said, "Ford sells its vehicles across all sectors of the UK fleet markets and I am delighted that the company has seen an increase in total fleet sales, in 2012. The combination of Ford's best-ever vehicle range, latest fuel-efficient diesel and EcoBoost petrol engines, improving residual values and the power of the
UK's largest dealer network has seen Ford's fleet business go from strengthto-strength. "We are seeing growing interest around the one-litre EcoBoost petrol engine, with 40 percent of Ford Focus one-litre EcoBoost sales going to fleet buyers, despite the fleet market being diesel-led," he concluded. Ford continues to lead the UK commercial vehicle fleet market with a 26.7 percent share, 13 percentage points ahead of its closest competitor. The Ford Transit tops UK commercial vehicle fleet sales with 27,006 registrations for the year-to-date and it remains Ford's third best-selling vehicle in Britain.
GLOBAL
German trade fair to offer
broader range of products, solutions Our Bureau
THE upcoming 10th parts2clean trade fair to be held in Stuttgart, Germany from October 23-25, 2012, anticipates around 230 exhibitors to present products and services for the optimised cleaning of parts and surfaces in manufacturing industries, maintenance and remanufacturing. In a growing number of industrial sectors, the cleanliness of components and surfaces has become a quality criterion defined by specific, reproducible residual contamination values. With global competition continuing to rise, it has become essential for companies involved in the manufacturing business, in maintenance or remanufacturing to be able to fulfil these requirements in a
cost-optimised way and as eco-efficiently as possible. However, this can only be achieved by implementing solutions that are individually adapted to a company’s needs and capable of carrying out complex cleaning tasks, removing oils and greases, removing burrs, assessing residual contamination or providing temporary corrosion protection. One of the world’s broadest transsectoral range of products and services will be on show for the industrial cleaning of parts and surfaces. Exhibiting
An Earlier Parts2clean Edition
companies from all areas of industry will be presenting numerous innovations and a range of solutions to ensure that cleaned parts and surfaces are protected against corrosion, preserved and packaged in an efficient and cost-effective way.
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GLOBAL
Bracknell Honda opens for business AFTER an extensive six-month construction programme, the Bracknell Honda car dealership has opened its doors to welcome customers to their brand new residence. Confirmed as one of the largest stand-
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alone Honda new car showrooms in Europe, the site is owned and operated by the Cloverleaf Group. It already has two retail sites in the Berkshire area, further increasing the profile of Honda and Jardine Motors Group.
It will mark a significant change in Cloverleaf 's presence in the area, as the Honda dealership in Ascot closes its doors. The Ascot site, just three miles away, has transferred all 22 staff to the Bracknell premises and has created a new role of Used Car Sales Manager. Work on developing the London Road site began last September and what has risen from the rubble is a brand new state-of-the-art dealership. The showroom has space for 14 new cars from Honda's modern and fuelefficient range, plus forecourt space for around 60 ‘Approved Used' vehicles. A seven-bay workshop will provide service and repair work, with further dedicated bays offering MoT testing and wheel alignment. From 1998 until 2009 the site was Honda's Racing Development location and the engine assembly base for third generation Formula One activities. Honda was involved in F1 racing from 2000 until 2008, so the site will be sure to bring back fond memories for the locals and Honda employees. Operations Manager for Cloverleaf Group, Gary Peters, commented, "The most exciting part of the move to Bracknell is being able to welcome customers into a stunning new facility that's in keeping with Honda's and Jardine's brand image. We had outgrown the Ascot site and Bracknell gives us much more space to show off Honda's exciting model range, which is set to expand significantly in the near future." Commenting on the new dealership, Head of Dealer Development at Honda (UK), Nick Campolucci said, "This is an exciting addition to the Jardine Motors Group' portfolio. With successful sites already in the Berkshire area we look forward to inviting new and current customers into the new showroom."
GLOBAL
Phone-web tech vitalises
Mazda communication Our Bureau
TO boost communication with fleet decision-makers and company car drivers, Mazda is embracing webbased smartphone technology. The company’s fleet-specific mobile phone website that went live recently, has been developed to help make access and usage efficient and straight-forward. Mazda is further expanding its communications with fleet customers—both fleet decisionmakers and company car drivers—as well as prospects by utilising LinkedIn, the world's largest professional network on the internet with more than nine million members in the UK and sponsoring the Fleet Academy—a web-based forum where fleet professionals can share news, views and opinions with others in the fleet industry. "Technology and methods of communication are changing rapidly and the fleet-dedicated initiatives we are introducing enable two-way interaction with existing customers and prospects at times convenient to them and while they are on the move," said Manager Fleet and Used Car Marketing at Mazda UK, Michael Stewart. He further explained, "Few if any motor manufacturers have a dedicated fleet site that has been specifically designed for smartphone use. Most sites
are not designed for mobile phone use and many use incompatible technology.
The site contains up-to-date details on the comprehensive Mazda range including images and video footage, a section on new models such as the recently launched Mazda CX-5 compact crossover SUV featuring breakthrough Skyactiv technology, special vehicle offers, information on Mazda Contract Hire and details on how to contact the Mazda Corporate Support Centre and the marque's franchise dealer network. The new LinkedIn site also goes live this month and has two facets—a Mazda fleet profile section highlighting its complete model range and new launches. It has forum sections with one targeted at employees with fleet responsibility in small and medium sized companies and another at full time fleet professionals. Information will be available on Mazda and its model range and key industry issues and topics such as: tax, legislation, fuel pricing, telematics, service maintenance and repair costs and vehicle funding. Stewart added, "We want to encourage debate, questions and dialogue from the fleet community and specifically fleet managers as well as employees in SMEs with fleet responsibility.
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PRODUCTS
‘Bosch@Home’ Power Tools ‘Balmerol’ Oils & Lubricants BOSCH Power Tools launched its ‘Bosch@Home’ range with the interest and needs of Indian consumer at the forefront. Consumers can choose from a range of exciting tools such as the Lawn & Garden Tools, Hobby Tools—Dremel, Smart Kit for home needs, IXO and Aquatak high pressure jet washer for cleaning of your car or bike. The tools are available at Home Town, Metro Cash & Carry, FutureZ First, Home Town Express and Kavyee Associates in Bangalore. Additionally, Bosch Power Tools has also launched the Bosch Kiosk to promote the ‘Bosch@Home’ range. The concept, backed by print promotion, will be rolled out across the country in the coming months. ‘Bosch@Home’ aims to usher in a new trend of Home Improvement that help consumers execute jobs at home and office, ranging from drilling, carving, etching, mowing and fixing to cleaning. We believe that these Do-It-Yourself tools will help bring back the joys of self reliance, like never before”.
BALMER Lawrie launched the new packaging for ‘Balmerol’ in a two day Channel Partner Meet 2012 held on 24th& 25th
August, 2012 at Silvassa. Balmer Lawrie manufactures and markets greases, oils & specialty lubricants under the brand name of Balmerol. The Greases & Lubricants business undertook a rebranding exercise recently and the Balmerol logo has been given a new and modern look. Around 60 distributors attended the event and visited the upcoming state-of-the-art Greases & Lubricants plant at Silvassa. Besides Silvassa, the Company has plants in Kolkata, Chennai and Mumbai.
Balmer Lawrie 21, Netaji Subash Road, Kolkata -700 001 Tel: +91 33 2222 5218 Web: http://www.balmerlawrie.com/
Bosch Power Tools is the leader of the power tools market in India. The company has built an enviable reputation for itself in India and its tools are popular due to the superior technology and quality offered by the company. Its legacy is reinforced by the fact that ‘every minute, one Bosch Power Tool is purchased in India. The Bosch Group is a leading global supplier of technology and services. According to preliminary figures, more than 300,000 associates generated sales of 51.4 billion euros in the areas of automotive and industrial technology, consumer goods, and building technology in fiscal 2011. The Bosch Group comprises Robert Bosch GmbH and its more than 350 subsidiaries and regional companies in some 60 countries.
Bosch Limited Post Box No: 3000, Hosur Road, Bangalore: 560 030 Tel: +91-080-2299 9228 Fax: +91-080-2299 2525 Web: www.boschindia.com
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Vision System With Autofocus, Integrated Lighting COGNEX Corporation has introduced the In-Sight 7010, an entry level vision system developed specifically for inspection tasks. Every aspect of the In-Sight 7010 has been designed to make deploying a vision system easier than ever before. It is a completely self contained vision system that includes autofocus optics and integrated lighting in a compact IP67 rated industrial housing. Applications can be configured very quickly
PRODUCTS
using the intuitive EasyBuilder user interface. The vision library on the In-Sight 7010 has been simplified to focus on the tools most frequently used in straightforward vision applications. The built-in autofocus capability of the In-Sight 7010 makes it ideal for production situations requiring regular part changes, or applications that require the vision system to be placed in hard-to-reach spaces where manual focus adjustment would be difficult. With autofocus, users can simply set and save the focus values associated with the inspection of each part. Users can also fine-tune focus levels manually with the interactive software. The In-Sight 7010 autofocus system is available with five different lens options to match the working distance and field of view requirements of each application. The compact In-Sight 7010 features integrated white lighting that is suitable for most vision applications. If a specific colour light is required to highlight particular parts or features, four optional coloured lights are available. The autofocus optics and integrated lighting developed for the In-Sight 7010 are also being deployed as options across the full In-Sight 7000 product range. In-Sight 7010 features EasyBuilder and a selection of the key inspection, measurement, alignment and guidance vision tools found on other In-Sight vision systems. With the unique combination of hardware features and software tools, the In-Sight 7010 is the ideal out-of-the-box solution for many straightforward vision applications.
which includes two pieces in front and three mats in the rear. 3M Car Care Stores offer a gamut of services including paint treatments, interior treatments, 3M Scotch Paint Protection Film and car wraps.
3M India Limited Concorde Block, UB City, 24, Vittal Mallya Road, Bangalore - 560001 Tel No: 0091-80-22231414 / 66595759 Fax No: 0091-80-22231450 Web: www.3mindia.co.in
Dual Magnetic Sensors NXP Semiconductors NV launched the KMA220, a dual magnetic sensor designed for all automotive applications where a mechanical angle needs to be measured. Integrating two sensor systems in a single package, it is particularly relevant for throttle control applications where a redundant system solution is required. Operating in a simple disk magnet configuration with no need for a PCB or external components, the KMA220 offers a unique solution to the automotive market. It is fully calibrated and ready to use, and incorporates three capacitors in addition to two sensors dies and two signal conditioning
Cognex Sensors India Pvt. Ltd Email: vaggu.sunil@cognex.com Mo: 9881466003
Car Mats From 3M 3M has increased its car care product portfolio with the launch of car mats Nomad in the country. One of the pioneers in the manufacturing of Vinyl Coil car mats, 3M Nomad car mats claims both durability and performance. The company claimed that the mat is characterized by superior dirt trapping features which doesn’t allow soil and dirt and liquids to remain on the surface, these mats are easy to clean and maintain. The product is available in four colour variants including grey, black, beige and brown for a customized fitting for their car floor
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PRODUCTS
Welding Holders
ASICs. This, combined with its dual nature, reduces system cost for customers and simplifies the assembly process. To achieve redundancy in throttle applications, car manufacturers have previously had to install two single sensors on a leadframe or onto a PCB, bending them to fit typically requiring an expensive ring magnet configuration to operate. With the dual KMA220 sensor, only one simple installation is required. Its uses NXP’s unique ABCD9 technology, an automotive platform at the cutting edge of analogue mixed-signal integration. This technology is based on NXP’s CMOS 14 process and significantly improves performance compared to previous sensor products with integrated ASICs. The KMA220 is also qualified according to the new HMM (Human Metal Model) with excellent electrostatic discharge (ESD) protection and EMC performance. It is available at $3.30 US in quantities of 10k pieces and $2.60 US in quantities of 100k pieces.
ATUL Arc manufactures and offers welding electrode holders that are available with fullyinsulated brass body lightweight with fibre body. Some of the features of these welding holders include: for high conductivity of current (copper/bass) body; heat-resistant insulators for longer life; heavy-duty manual arc welding; current rating up to 600 A; suitable for electrode dia up to five mm; open mouth jaw type; for better cable connection 2 Allen screws provided with grip plate in fully insulated; and for better cable connection three bolts provided with grip plate in semi-insulated. Atul Arc, New Delhi 110 005. Tel: 011-2573 6102, Fax: 011-2705 3622, Mob: 9811825256, 9810273058 (SK Jain) Email: info@atularc.com, Website: www.atularc.com / www.atularc.net
Painting Booths
STEEL Mart offers import substitute tools and alloy steels to meet the demands of major industries, like defence, heavy and medium engineering, automobile, sugar, cement and other small scale industries. The latest range of products include, specialised steel category of alloy steel forgings, carbon spring steel sheets, high manganese steel plates, wear resistant plates, die steel blocks, flange steels, boiler quality plates, etc. Apart from special steels, normal range of EN series steels is readily available off-the-shelf and the same can be supplied in random lengths as well as cut lengths as specified.
AMI Industries offers side draft, nonpressurised painting booths that are totally compact and suitable for small and medium size component painting. These painting booths are suitable for conventional or electrostatic hand guns with no addition or modification. Adequate exhaust results in effective removal of overspray paint particles and thus eliminates its setting on wet painted surface. They also provide clean air to the operator. Washing action minimises escape of paint along with exhaust air and thus eliminates surrounding pollution and also the risk of fire. The air flows have been so designed so as to offer total comfort to operator and in accordance with safety standards applicable. They find applications in automobile parts, control panels, pumps, valves, cycle parts, castings, fans, non-stick cookware, ball pens, air pins, refrigerators, etc.
Steel Mart, Mumbai 400 011. Tel: 022-2308 0096, Fax: 022-2307 9961, Mob: 09820038501 Email: smartbom@bom8.vsnl.net.in, Website: www.steelmartmumbai.com
Ami Industries, Mumbai 400 063. Tel: 022-2686 3120, Fax: 022-2873 4753 Email: oven@bom5.vsnl.net.in, Website: www.amiindustries.com
NXP Semiconductors India Pvt Ltd Information Technology Park Bangalore 560045Nagawara Village, Kasaba Hobli Tel: +91 (0)80 40240000 Fax: +91 (0)80 40247000 Web: www.nxp.com
Tools & Alloy Steels
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PRODUCTS
Spray Guns
DIGITAL automatic tyre inflators (model SetAir-201S) offered by Instrument Research Associates are fully automatic, safe, electronically controlled closed loop systems to inflate tyres accurately to a preset pressure level by adjusting the filling rate automatically after sensing the size and type of the tyre. These equipments automatically decide to inflate or deflate a tyre depending on the under-/over-pressure of the tyre. A single equipment can inflate and deflate tyres of all types of vehicles including mopeds, scooters, mobikes, cars, vans, buses, trucks and tractors. The equipments offer utmost ease of operation to users who are not well versed in English. Features include: exhaustive facility for fast inflation of flat tyres; convert function to show the desired and actual tyre pressure in kg/cm³ and PSI; confirm/backlight functions combined in one switch; LCD specially designed with icons to indicate the select units of pressure reading kg/cm, PSI, etc; and waterproof integrated keypad with positions of inc, dec, flat tyre, convert and confirm/backlight functions.
PILOT India manufactures and offers HVLP spray guns (model HVLP-03) that are lightweight and come with sleek body. These spray guns have comfortable handle and trigger action. They make operation easier and non-tiring. The spray guns have round-to-flat pattern adjustment. Water-based lacquers can also be applied. Other features include: air volume control, symmetric gravity cup for perfect balance, etc. Unique Air Circulation Technology (ACT) air cap delivers greater transfer efficiency resulting in substantial saving of material, which can be as high as 25-30 percent. The versatility of these HVLP spray guns has resulted in multiple applications in diverse industries. Some of the technical specifications are: cup capacity 0.57 litres, gravity feed, gun distance from workpiece 200 mm (8”), fluid nozzle orifice diameter 1.3 mm, required pressure 3 kgf/sqcm, minimum air compressor three HP, weight of gun with cup 700 gm.
Instrument Research Associates Pvt Ltd, Bengaluru 560 100. Tel: 080-2852 0590/2/4, Fax: 080-2852 1525 Email: Winira@Airtelbroadband.In, Website: www.irainstrumentation.com
Dock Levellers TEXTILE Machinery Manufacturing Company manufactures and offers dock levellers (model TL-2H & TL-3E) with lifting capacity up to 3000 kg and 10000 kgsrespectively. These dock levellers are available in modular and electrohydraulic versions. They are ideal equipments for use where there is a difference in the levels of storage and level where goods are to be transferred. By acting as a bridge these dock levellers make work easier, faster and economical. A variety of customised versions are available to suit end-user requirements. Textile Machinery Manufacturing Company, Ahmedabad 380 021. Tel: 079-2216 1389, 2294 1747, Fax: 079-2294 1822, Mob: info@truckmanindya.com Email: truckman@truckmanindya.com, Website: www.truckmanindya.com
Pilot India, Mumbai 400 069. Tel: 022-6697 8900, Fax: 022-6697 8907 Email: sales@pilotindia.com, Website: www.pilotindia.com
Engine Oils MAHATHOL 2T Super from Mahatha Petroleum is a twostroke engine oil developed with suitable base oil and select additives to minimise spark plug fouling and pre-ignition. These oils prevent rusting, minimise deposit formation and provides protection against seizure, scuffing and wear. The oils also have advantage of lower oil consumption and contain diluents for easy mixing with petrol. These oils are recommended for all types of two stroke engines of mopeds, scooters, motorcycles and three wheelers. The recommended dosage of Mahathol 2T Super is 20 ml per litre of petrol. Mahatha Petroleum Pvt Ltd, Chennai 600 117. Tel: 044-2247 1542, Fax: 044-2247 3800, Mob: 09444065754 Email: mahathapetroleum@dataone.in, Website: www.mahathapetroleum.com, Certification: An ISO 9001:2000 Certified Company The information published in this section is as per the details furnished by the respective manufacturer/ distributor. In any case, it does not represent the views of
SEPTEMBER 2012 AFTERMARKET
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LIST OF PRODUCTS & ADVERTISERS’ Automotive dealership excellence award .................................................4
Instant drying & curing technology ...................................................BIC
Batteries ..................................................................................................11
Integrated Lighting ................................................................................46
Bearing housing. ....................................................................................47
Laptop trolley .........................................................................................24
Brake pads ..............................................................................................11
Lighting ..................................................................................................11
Bus air conditioners ..................................................................................3
Lubricants...............................................................................................11
Car mats ................................................................................................47
Mobile service van ..................................................................................24
Clutch plates & cover assemblies ...........................................................11
Oils & lubricants ....................................................................................46
CNC/VMC machines ......................................................................... BC
Painting booths ......................................................................................48
Compressors .............................................................................................3
Parts washer............................................................................................24
Condensers ...............................................................................................3
Pistons ....................................................................................................19
Cooling module ........................................................................................3
Pistons & pistons rings........................................................................FIC
Dock levellers .........................................................................................49
Power tools .............................................................................................46
Dual magnetic sensors ...........................................................................47
Relays......................................................................................................11
Engine oils..............................................................................................49
Seals ........................................................................................................47
Exhibition - AutoMech 2012 ................................................................39
Socker observers .....................................................................................29
Exhibition - AutoServe 2012 ...................................................................6
Soses & tubes ...........................................................................................3
Exhibition - Engineering Expo ...............................................................8
Spark plug ...............................................................................................11
Filter cleaning unit .................................................................................24
Spray guns ..............................................................................................49
Filters......................................................................................................11
Starter motor ..........................................................................................11
Garage equipments ................................................................................43
Tool trolley .............................................................................................24
Gasoline systems ....................................................................................11
Tools & alloy steels.................................................................................48
Gear pumps ............................................................................................11
Transmission jack ...................................................................................24
Go-jack ...................................................................................................24
Tyre inflators ..........................................................................................49
Heating solutions ................................................................................BIC
Vision system with autofocus .................................................................46
Heavy duty bike lift................................................................................24
Waste oil disposer ..................................................................................24
Horns ......................................................................................................11
Welding holders .....................................................................................48
Hvacs & evaporators ................................................................................3
Wheel balancing weights .......................................................................17
Hydraulic press .......................................................................................24
Wiper blades ...........................................................................................11
FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover
Advertiser’s Name & Contact Details
Pg No
Automotive Dealership Excellance Awards 4 W: www.adea.in Bosch Limited
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T: +91-80-22999228 W: www.boschindia.com Confederation Of Indian Industry
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T: +91-44-42444555 E: autoserve@cii.in W: www.ciiautoserve.in Confederation Of Indian Industry
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T: +91-124-4014060 E: rachna.jindal@cii.in W: www.jetfindia.in Engineering Expo T: +91-09819552270 E: engexpo@infomedia18.in W: www.engg-expo.com
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Advertiser’s Name & Contact Details
AFTERMARKET SEPTEMBER 2012
Advertiser’s Name & Contact Details
Pg No
Federal Mogul T: +91-124-4784530 E: customercare.india@federalmogul.com W: www.federalmogul.com
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Puja Fluid Seals Pvt Ltd T: +91-20-27112016 E: sales@pujaseals.com W: www.pujaseals.com
47
Icon Autocraft T: +91-9873337373 E: info@iconautocraft.com W: www.iconautocraft.com
43
Ranger Stork T: +91-120-4372157 E: info@rangerstork.com W: www.rangerstork.com
17
KYB Asia Co Ltd T: +91-9871687888 E: anup73@sify.com W: www.kyba.co.th
29
Shriram Pistons & Rings Ltd T: +91-11-23315941 E: aarti.anandan@shrirampistons.com
Litel Infrared Systems Pvt Ltd T: +91-20-66300636 E: sales@litelir.com W: www.litelir.com Oil Lube Systems T: +91-129-2430786 E: marketing@oillubesystems.com
FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover
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Pg No
BIC
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Subros Ltd T: +91-120-2567028 E: marketing@subros.com W: www.subros.com Yamazaki Mazak India Pvt Ltd T: +91-2137-668800 E: sudhir_patankar@mazakindia.com W: www.mazak.com
FIC
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BC
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