Auto Monitor 3 june 2013 by Infomedia18

I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S

Auto Monitor

Vol. 13 No. 19

www. a m o n l i n e.i n

3 June 2013

REPORT

26 Pages

INTERVIEW

Pg 08

`50

Pg 16

Acid test - DSWAMI study

Mapping the future

A JD Power APAC report reveals findings for auto companies

Rakesh Verma, MD, MapymyIndia

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Joining forces A new joint venture boosts BEPL’s conﬁdence of achieving its ambitious growth plans and strengthening its position among automobile OEMs. Pradeb Biswas Mumbai

hansali Engineering Poly mers L i m ited (BEPL), a Tier 2 supplier of ABS (Acrylonitrile Butadiene Styrene) and SAN (Styrene Acr ylonitrile) has entered into a joint venture with Japan-based Nippon A&L Inc. A agreement to this effect was signed on May 11. The venture gives BEPL access to NAL’s technical knowledge, recipes, compounds and intellectual property rights for manufacturing the polymers. It also allows BEPL to train and exchange manpower and utilize the testing facilities of Nippon A&L Inc. Additionally BEPL will also be entitled to support from Nippon A&L Inc towards sales, R&D and new product development. This tie up will assist BEPL in achieving its expansion plans of attaining a production capacity of around 125,000 MT per annum by September 2015. Its

immediate growth plan is to expand production capacity to 70,000 metric tones by April 2014. Currently BEPL has a manufacturing capacity of 51,000 MT per annum through its two existing plants at Abu Road in Rajasthan and Satnoor in Madhya Pradesh. BEPL ofﬁcials expect their market share to increase from the current 35 percent as Nippon A&L Inc products are globally approved by all Japanese automobile manufacturers. In 2010-11 BEPL registered a gross sales turnover of `510 crore which dropped to `457 crore in 2011-12. This year it estimates a turnover of around `480 crore and aims to increase it to `1500 crore by 2015-16. The JV will help them to cater to the increasing industry demands of ABS, ASA and AES resins. The ABS market is India is still under developed in comparison to its global peers. According to BEPL estimates, the ABS market size of the Indian sub continent is around 150,000 MT per annum

which is a mere two percent of the global consumption ﬁgure. The estimated global consumption of ABS was over seven million metric tonnes in 2012. But the ‘silver lining in the polymer cloud’ is that the Indian Engineering Polymer market is growing at a CAGR of 12 to 15 percent against the global average of seven percent. One of the growth drivers is the automobile industry which is increasing the percentage of ABS used in manufacturing and replacing the traditional heavyweight metal. The ABS, ASA and AES resins are being used in various applications like instrument panels, consoles, vehicle interiors, door trims, fenders, fairings, bumpers and panels. They are also used in manufacturing radiator grill, tail lamps and mirror housing, interior roof liner (bus body) and air ducts being lightweight and can withstand heat of up to 120 degree centigrade. It is also used in manufacturing motorcycle helmets.

With the Indian automobile industry focus on making vehicles lightweight for energy efﬁciency, BEPL is bullish about tapping into this merging pie.”We want to grow big in the ABS segment as we foresee an increase in its application basket. We will focus mainly on the automobile sector as we see huge opportunities mainly due to its innovation led consumption in the sector. This partnership with

Nippon A&L will help us become an integrated part of automobile OEM’s supply chain and help them procure ABS of international standard locally in a cost effective manner,” said Jayesh Bhansali, Executive Director of BEPL. Currently a two-wheeler consumes around two kg of ABS while a four-wheeler consumes around four to seven kg of it.

Contd. on P8

BEPL Abu Road Office

MapmyIndia turns neighbourly Nabeel A Khan New Delhi

apmyIndia, the ﬂagship brand of CE Infosystems Pvt Ltd, is launching digital maps and navigation system in neighbouring Asian countries – Nepal, Bangladesh and Sri Lanka in June. The leading Indian GPS Navigation and web mobile location apps provider is taking this step to complement and support its Indian auto manufacturers which business in these countries. “We will be launching maps in a month’s time in these countries. We are yet to work out a strategy. Since most of the auto companies have a presence in these countries, they will use the navigation system and install them in the cars sold there. Since

the countries are small I don’t foresee much business initially. We are taking this step to help our customers,” said Rakesh Verma, Managing Director, MapmyIndia (CE Infosystems Pvt Ltd.). The navigation system will initially be sold through car makers. MapmyIndia is mulling options of setting up ofﬁces in these countries. However, the company will initially sell the navigation system to carmakers’ showrooms as an approved accessory. It will launch a complete range depending on demand. In another effort, the company is strongly seeking to increase its presence among OEMs. It announced that the new Tata Vista D90 now offers in-dash GPS navigation system powered by

MapmyIndia. The integrated GPS navigation system will be available as a standard feature in the Tata Vista D90 ZX+ model. With this tie-up, MapmyIndia maps will be available to Vista car buyers. “Tata Motors is known as a manufacturer with a deep understanding of customer needs; the car models reﬂect this philoso-

phy. At MapmyIndia we take into account customer feedback and based on feasibility incorporate it into our products. We are happy to have partnered with Tata Motors to bring a superior GPS ‘navitainment’ experience to Vista D90 customers,” said Shivalik Prasad, Executive Director, MapmyIndia. The GPS navigation which the Vista D90 car will have has India’s most comprehensive, exhaustive, detailed and updated map coverage, covering 10.33 million places, 1.9 million road kilometers, 600,000 villages, 4,787 cities at street-level, 50 cities at house-level, 46 cities in full 3D driving directions to 30,000 tourist locations. It also includes best-in-class advanced and localized navigation

Rakesh Verma interview, pg. 16 and driver assistance features such as extended lane guidance, sign-posts, rich points of interest, regional voice guidance and regional maps. MapmyIndia’s GPS navigation system also offers accurate turn-by-turn, voice-g uided navigation to doorsteps in all Indian regional languages. The maps provide full 3D coverage of India, with thousands of full scale 3D landmarks across India, and full 3D city models containing 3D buildings in residential and commercial areas for 36 major cities across India, including all the major metropolitan areas.

EDITORIAL Conscience pays

very so often one hears automobile makers recalling cars that they suspect could have a faulty part. Sometimes the recall call could come eight to ten years after the vehicle has been sold. Abroad, recalls are fairly common, especially among the large makers. In India, most manufacturers would quietly approach the buyers and ﬁx the car citing a lame excuse. The unsuspecting buyers would then be given some freebie (happened in a case I know) to compensate for separating him from his car. It’s only now in the last couple of years that manufacturers are more conscious about making a big thing out of it. A discerning fact here is that outside India, especially in Europe and America, there’s a natural tendency to confess when an error has happened or the guilt feeling gets too strong. So one often sees celebrities make an appearance on television and tell the world the reason for erring. It’s the same with car companies. Otherwise, how would you explain the need to recall a car years after it has been sold? One begins to wonder whether the car is still on the road. Most recalls are caused by deﬁciency in parts that are supplied by Tier 2 or Tier 3 suppliers. Considering that vendors

have a vast supply chain that run into hundreds of thousands of suppliers, it sometimes could become hard to test the quality of the products. Moreover, for companies it’s a question of prestige. How will a recall reﬂect on the brand and the products? People might begin to look askance if there are frequent recalls. It’s a good thing that SIAM initiated a voluntary recall code thus helping the companies realise that recall is not such a bad word after all. And nor is confession.

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QUOTABLE QUOTES Pawan Goenka, Mahindra & Mahindra President, Automotive & farm Equipment Sectors on the increasing number of competition in SUVs

C Ramakrishnan, Chief Financial Officer, Tata Motors after announcing the company’s quarterly results

With so much competition in SUVs now, market share is bound to go down.

The stressed environment would have an impact on the demand for the company’s products.

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CONTENTS CORPORATE One in five dealers may take a hit in 2013

The findings of a study Dealer Satisfaction with Automotive Manufacturers Index by JD Power AsiaPac

In a quandry

The quadricycle debate continues, with the chairman of the International Road Federation now criticising the move in a strongly-worded press release.

A-Class apart?

Mercedes Benz launched the A-Class in India last week at `22.73 lakh for the A180 Sport and `21.93 lakh for the A180 CDI in anticipation of growing market for ‘ultra premium’ hatch.

Tata Motors launches CV driving school

Tata Motors recently inaugurated a commercial vehicle driving centre in Singrauli, a partnership between Tata Motors and the Urjanchal Driving School.

Giant Strides

Nissan India’s new Managing Director & Chief Executive Officer, Kenichiro Yomura shares his game plan for the Indian market.

TVS Logistics acquires Wainwright Industries

THE OTHER SIDE

TVS Logistics acquired US-based Wainwright Industries in a move that is expected to add capabilities such as ‘cross docking’ and sub-assembly for manufacturers.

M&M Q4 Operating profit up 42 pc

Mahindra & Mahindra Ltd. and MVML during the quarter ended 31st March 2013 is Rs. 11,342.3 crore as against Rs. 10,333.6 crore in the previous year – a growth of 9.8 percent

Rajeev Panse, MD & CEO, Panse Autocomps

Although he had no business background, Panse was driven by the desire to be an entrepreneur and make his mark in the industry and established Panse Autocomps in 1983.

Auto Monitor

3 JUNE 2013

REPORT

One in ﬁve dealers may take a hit in 2013 The ﬁndings of a study Dealer Satisfaction with Automotive Manufacturers Index by JD Power AsiaPac

crucial component in the automotive chain between a manufacturer and its customer is the dealer. Understanding the pulse of the market is largely done by dealer feedback so keeping dealers in high spirits is imperative for a manufacturer. But when sales are dipping, dealer margins take a hit and unsettle the industry as a whole. JD Power Asia Paciﬁc conducted a study, Dealer Satisfaction with Automotive Manufacturers Index (DSWAMI), between

Contd. from P1 One of the features of ABS is its attractive and high quality glossy ﬁnish which is increasing its preference among automobile OEM’s. BEPL’s current list of customers from the automobile industry includes Bajaj Auto, HMSI, Toyota Kirloskar Motors, TVS Motor Company, and Exide Industries Ltd. BEPL is one of the two companies in India which manufactures

February and April 2013 in association with FADA. The study measures dealer satisfaction with vehicle manufacturers or importers in India and identifies dealer attitudes regarding the automotive retail business based on responses from 618 dealership general managers or dealer principles across major nameplates around the country. According to the study, one in five dealers in India is expected to take a financial loss in 2013, more than double the number compared with 2012. Overall

and supplies ABS and SAN high performance polymers. The polymers get utilized into end application through manufacturing process like injection moulding and extrusion to name a few. Its products are marketed under the trade names Abstron and Santron. The company set up its ﬁrst plant at Satnoor in collaboration with Japan based Sumitomo Naugatuck Co. It acquired competitors Polychem

dealer satisfaction is determined by examining nine factors: marketing and sales activities; product; vehicle ordering and delivery; sales team; parts; warranty claims; after-sales team; training; and support from the manufacturer. Declining profitability One of the most important findings of the study is that only 44 percent dealers expect to make a profit for 2012-13, down 18 percent from the previous year. About 20 percent dealers expect losses for the year, up 12 percent over 2011-12. The largest factor in dealer satisfaction according to the study, says JD Power Asia Pacific’s Mohit Arora, is OEM support. He elaborates, “Support in terms of making dealers understand how to run the business profitably, dealer viability issues, what kind of marketing and sales support needs to be imparted, a steady and regular supply of spare parts and having a fairly wide range of product offerings.” Declining profitability for dealerships in India not only highlights the impact that the

Limited in 2000 and Rajasthan Polymers & Resins Limited in 2003. Nippon A&L is owned by Sumitomo Chemicals and Mitsui Chemicals and has a manufacturing capacity of 110,000 tones per annum of ABS and ASA resins. Based in Japan, it is a specialized company which manufactures and markets ABS, AES and ASA resins with a capital of 6 billion Yen.

slowdown in new-vehicles sales has on the viability of a growing number of dealers, but also underlines the importance placed on automakers to provide adequate support to their respective networks. Brand performance The study reveals that dealer satisfaction running Toyota and Maruti outlets are at the top of the list. Chevrolet, Ford, Hyundai and VW performed above average and Honda, Mahindra and Tata were below average. Arora says, “For Honda, I think it is due to the supply chain issues the company was facing. Shortage of spare parts too due to the disasters in Thailand and Fukushima and not the right range of products required to service Indian customers affected Honda.” He added that this is changing now with the launch of the diesel Amaze and rectiﬁcation of the supply chain issues. Commenting on the poor dealer satisfaction score for Tata Motors, Arora says, “They (Tata products) lack the freshness and are fairly dated.” He rounds it off by saying that there is a gap between what

BEPL Plant

Mohit Arora, Executive Director, J D Power Asia Pacific.

dealers are expecting and what the OEMs are able to deliver. Ford and Chevrolet, says Mohit, can move up the ladder, only when the have a large enough portfolio of products. The problems faced by different nameplates are different and so each OEM will have to recognize them by having discussions with dealer principles on how to address the issues faced by dealers. After all, the OEM sells its product ﬁrst to the dealer.

Auto Monitor

3 JUNE 2013

A N A LY S I S

A-Class apart? Anand Mohan Mumbai

he words untapped or developing are adjectives often used to describe the automotive industry in India. It is generally used to suggest that there are still plenty of segments and sub-segments that are latent. Although every segment may not offer desirable results, manufacturers want to be present when the scope opens. That’s what the Mercedes A-Class has set out to do. Mercedes Benz launched the A-Class in India last week at `22.73 lakh for the A180 Sport and `21.93 lakh for the A180 CDI (ex-showroom Mumbai). It will be sold in India as a CBU, same as the B-Class. Priced a tad bit cheaper than the B-Class, yet north of the `20 lakh mark, the A-Class isn’t cheap by any means. Powered by a 1.6-litre 122bhp petrol motor and a 2.2litre 109bhp diesel engine, the A-class is deﬁnitely short on the power curve. The focus is pitching it as a compact luxury car for

city runabouts. In the luxury car market, Mercedes doesn’t enjoy the top spot it once owned. Audi is the market leader with BMW a close second and this race is what’s compelled Mercedes to realign its strategy for the Indian market. However, at the launch the company pressed home the statement that it is not playing out the numbers game. The real ﬁght according to Mercedes will begin sometime in 2015 when the market has matured a bit. Meanwhile, it is steadily building up the infrastructure and the portfolio to make the move. This is probably the reason why Mercedes has no immediate plans to launch the A-class as a CKD in India. They don’t foresee enough numbers to make a case for it. Sold as a CBU, a small batch is allotted to dealers who don’t have much trouble selling the car since demand is higher that way. Mercedes invited owners of the three-pointed star to experience the A-Class prior to the launch and that way has assured bookings of over a hundred units. The company had taken a simi-

lar route with the B-Class. Once the company exhausts its allotted number of cars for India, it will request for another batch. Sources tell us that the B-class is in for its third batch. Selling as a CBU and in small batches should make the A-Class quite insigniﬁcant in the Indian automotive scheme of things. But this is not so. It’s important because it means the birth of a

new segment. While large luxury hatchbacks are an alien concept to Indian car buyers, they are quite popular in Europe. The way compact SUVs and MPVs, both relatively new segments, have picked up indicate that the market is ready for new segments that aren’t conventional. For the moment, Mercedes has the ﬁrst mover advantage in the luxury hatchback segment. Volvo will

be launching the V40 this month which is expected to challenge the A-Class with its more powerful motors and near similar price. And by the end of the year, BMW is coming with its 1-series hatchback. It’s safe to assume that Audi too could be evaluating the possibility of the A3 launch in India to stay in the game. Collectively, they may not sell large numbers but they ﬁll up another segment. It will be interesting to see if Indian customers can shrug off the idea that the costlier the car, the larger it has to be. The A-Class as an expensive luxury hatchback doesn’t offer much to a customer. It’s a car to buy for its styling and exclusivity. If you want a bit more, wait for its competitors. The V40 and the 1-series will be worth a look. In 2014 Mercedes is also likely to get the CLA to India. It’s the saloon-coupe version of the A-Class and thus offers more value. As a segment starter, kudos to Mercedes. Only time will tell whether this move will go in favour of the brand. Not as a CBU, though.

The road to recovery?

ata Motors announced that its consolidated revenues have grown by 10 percent for the quarter ended March 31, 2013 to `56,002 crores. Its consolidated revenues for the same quarter of the previous year stood at `50,908 crores. The consolidated revenue grew by 14 percent to `188,818 for FY2012-13 in comparison to its revenue of `165,654 in the corresponding period last year. It sold 197,056 units (including exports) of commercial and passenger vehicles for the quarter ended March 31 witnessing a decline of 31 percent in comparison to the same quarter of the previous year. The company’s market share in the commercial vehicles segment was 59.5 percent for the year ended March 31, 2013. Sales of JLR grew 18.7 percent to 116,340 units and its revenues grew by 21.9 percent to GBP 5,053 million for the quarter ended March 31, 2013. The finance arm of Tata Motors registered a growth of 29 percent with a Profit After Tax of `309 crores as against `240 crores in the same quarter last year. ”As far as the industry goes, what we have seen in the past year is that the passenger vehicle segment or market has remained flat. However we have seen a huge increase in SUVs against cars. Our SUVs also get split between the real off-road SUV and the localised ones which is the growth segment. Manufacturers that have an offering in that segment have done well than others. In CVs, we have maintained our market share despite the new competitors. We don’t foresee any changes going forward because the fleet owners would like to see their capacities utilized to 100 percent and not where they currently are at 60-70 percent before they get back to purchase intent,” said Karl Slym, Managing Director, Tata Motors. ”We are in talks with the government and the officials to set up a kind of automotive cluster in Saudi Arabia. The intent is to have a cluster of suppliers for the production range of Jaguar Land Lover. Last year we grew by 48% in China and close to overtaking Europe by this year as the biggest region. I am convinced that this might happen by this year. We are committed to China and eager to see how it grows further,” said Dr. Ralf Speth, Chief Executive Officer, Jaguar Land Rover. ”The last year was a difficult year but we managed to maintain our market share. We introduced 35-40 new products even in a year like that. In the coming year also we intend to introduce around 40-50 new products,” said Ravi Pisharody, Executive Director, Commercial Vehicles.

Auto Monitor

3 JUNE 2013

T Ê T E- À -T Ê T E

Giant strides Nissan India’s new MD & CEO shares his game plan for the Indian market. Pradeb Biswas New Delhi

t’s been two months since Kenichiro Yomura took over the Indian operations of Nissan Motor as Managing Director and CEO. Within this time, he has chalked out plans to overcome the challenges that exist for Nissan in India. With three decades of experience with Nissan Motor across departments and regions, Yomura knows what Nissan lacks in India and what needs to be done. “Nissan is the number one brand in Japan and we are trying to achieve the same in India,” he told Auto Monitor. Going forward, his main priority that will enable growth for Nissan is introducing new products, increasing dealerships and strengthening marketing communications. He wants to expand the existing dealer network to 145 outlets by March next year. Acknowledging that Nissan will soon enter the growing SUV market in India, he doesn’t expect the segment to contribute largely as a late entrant. He revealed that Nissan will soon launch two new products and two refreshed variants. However, Yomura is clear that the product expansion plans will largely depend on the economy and the performance of Nissan in other markets. The company is also seeking to localize engine production at the earliest. It recently localized production of the transmission. Nissan is also planning to get more suppliers

on board, however, Yomura is unsure that it might happen this fiscal. But he is clear that the company will launch more commercial vehicles under its JV with Ashok Leyland. Given the current slowdown in the automobile market, the manufacturer aims to achieve increased cost efficiency. “We would like to utilize the existing plant capacity to optimum. There’s no question of setting up another facility as we need to realise significant volumes. I am also not looking at bringing the Infiniti brand to India, unless we are assured of sales of at least 50,000 units,” he added. He credited the increase in volumes to Nissan’s strategy of setting up domestic production, as well as exports. Being assigned with the responsibility to increase market share in a particular country is not new for Yomura. Prior to assuming charge in India, Yomura played a key role in increasing the Japanese auto major’s foothold in China. He shouldered the overall responsibility of Marketing, Sales and Communication at Dongfeng Nissan Passenger Vehicle Company in China. He says that Nissan’s current position in India is déjà vu that existed in China a few years ago. “Nissan is in a similar situation in China where a slowdown in the market commensurate with an increase in competition. When I joined

Standing out: Nissan India’s MD & CEO, Kenichiro Yomura

Nissan in China, Volkswagen had more than 50 percent market share. During my tenure in China, Nissan introduced nine models. Our efforts paid off within four years,” he recalls. “In China I often stressed that dealers associated with Nissan be continuous, consistent and thorough. Customers expect courtesy, clean showrooms and workshops to get comfortable. Ultimately, we make a living only when customers buy our cars, and so they need to be catered to well. We have aspirations to grow so we should satisfy the customer and stand out from the competition,” he added about his successful China strategy. About near future plans, Yomura looking pleased said

that the global premier of the Datsun brand in July is on course. “Establishing the brand will need some time. I know that Suzuki and Hyundai hold strong positions in that segment and it would be tough for us to break in. However, Datsun will be targeted at a particular audience. The nature and characteristics of Nissan and Datsun are different. We are looking at creating separate branding for both. Some dealerships will be common to both,” he added. Nissan’s existing tie up with Hover Automotive India (HAI) to operate its sales, service, marketing and dealer development process in India has run into some issues. Speaking about it Yomura said that nobody is

perfect and there could have been times when the onus fell on Nissan. The company is still ironing out the problem. As MD & CEO of Nissan Motor India, Yomura w ill oversee M a nu f a c t u r i n g , R&D and the organization’s existing joint ventures. His responsibilities include creating strategies, improv ing business performance, managing product introduction and increasing Nissan’s dealer network. After joining Nissan in 1982, he has since worked in public relations, government affairs, sales planning and marketing divisions in Japan, China, Middle East and the US. However, the man is not resting on his laurels.

Auto Monitor

3 JUNE 2013

INTERVIEW

Mapping the future In the future, MapmyIndia hopes to contribute to the creation of driverless car systems in India. Accurate route details and maps will play a vital role in making the technology possible. However, to take the technology to that level proper infrastructure is vital, says Rakesh Verma, Managing director, MapmyIndia, in an interview with Nabeel A. Khan. What potential do you see for your business in India? We provide tracking and navigation services through GPS and telecom networks. We have gone to market through the aftermarket and we have also gone to market through the OE route, where the OE could be automotive or telecom. We have also been in B2B, where we provide products and services to the enterprise. The navigation products are mainly GPS-based, not much of telecom-based products. The navigation products fall into two categories – portable or in-dash. Portable – standalone PNDs. The other type of portable device is based on connected devices, the system provides other options. So looking at it in totality it’s the right place and time to be. The market for line-ﬁt navigation systems has now started taking off. What kind of future do you see for it? You are absolutely right that the

OE side of the business is taking off well in the PND. As we know, in the western world the navigation business was ﬁrst promoted by the OEMs, but in India the aftermarket business took the lead and later on car manufacturer started taking it forward. Most car companies are offering PNDs in two ways. One, car makers say it’s an approved accessory which the customers can buy from the car showroom. The other way is that car companies offer it as an incentive to the consumer where they bundle it with the car. PNDs are becoming a popular accessory, even if they are offered free of cost to the consumers by car makers. Being an early mover in the business in India, what kind of market share do you command? The PND market is growing steadily, as at one point in time only we existed and then only one other brand was there. Now two more brands have come. Our market share was in the

range of 80-90 percent earlier. Now we’re still able to maintain a market share of close to 70-80 percent in the portable navigation device (PND) category. In terms of in-dash systems, the navigation comes from the car company in the in-line ﬁtment. In the line-ﬁtment our role is only to provide the software and the map, and in some cases only the maps. In this area, we have the much higher share, because most car companies like our maps, be it BMW or Merc, name any car company – they are all using our maps. We can safely say we have more than 90 percent market share in this. You currently source your hardware from China. Any plans to locally procure hardware for the in-dash system? Well, as of now I am not aware of any Indian manufacturers who make hardware for navigation. This is typical component manufacturing. We may manufacture the hardware if things

go right. However, we don’t want to deviate from our main focus right now. If you look at in-dash hardware, especially in the aftermarket, all are manufactured in China. We provides specifications to our Chinese manufacturer and based on this they manufacture the hardware for us. In some case OEs have taken both hardware and software from us, for instance for the Renault Scala. Which segment provides you the most business? I think we have more control on the aftermarket compared to the OE. However, in terms of maps, software OE is going very well. We expect that once the navigation system becomes a standard fitment in India the way music systems are standard fitments now, we will have a larger chunk coming from here. And we see that happening in the near future. In a recent move the Delhi government have asked for all commercial vehicles to have

GPS systems. As for institutional sales, we have customers in the defence, homeland security, urban planning, urban property tax and other government organization where tracking and navigation play an important role. If we take all of them together then 70 percent of revenues come from the automotive industry, the rest come from telecom and B2B. Recently Blackberry tied up with us to provide maps. What kind of growth did you have last year? Last year we did not grow to our expectations, but it was better than industry performance: around 25 percent. What are you aiming at now in terms of technology? You might have heard of the Google car. This is nothing but a driver fewer cars and one of the very important things for this is that we should have proper maps of the route and the government should also provide proper signage. It will take time, maybe ten years, before we have accurate route data available. The western world is ready today. Twenty years ago when we started working on digital maps in India, nobody had thought of it. Today we are also working on lots of new technologies in terms of digital maps. I think in the future we will be able to have driverless cars in India as detailed route maps with all kinds of details such as slope, upside, terrain, etc. become available. Do you have plans for any joint ventures or takeovers? We take over companies for customer acquisition or technology acquisition, or to kill the competition. The two global giants who are our competitors in navigation are here. I don’t need to take them over. Acquisition from this point is not a good option, and where technology is concerned, we haven’t found anyone in India who will help us. Do you plan to introduce navigations systems for bikes? Car owners still do not see this as an important tool. Let us first complete the car segment then we will move to bike. But we do have navigation systems for bikes. When do you see the penetration of navigation systems increasing in India? Currently five percent of cars in India have navigation systems. That’s around one lakh units and going forward it will increase. Our growth is also dependent on the Indian economy. Earlier the base was small but now it has increased so it will depend totally on the GDP. The last five year CAGR for us was 300 percent. Beyond cars which are the other automotive segments where you see the business coming? Well we are seeing the usage of the navigation and tracking system in CV, and homeland security and defence.

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3 JUNE 2013

NEWS

In a quandary The quadricycle debate continues, with the chairman of the International Road Federation now criticising the move in a strongly-worded press release.

K Kapila, Chairman of the International Road Federation, has lashed out against the Indian government’s decision to allow the use of quadricycles on Indian roads, calling it a “retrograde” move, echoing Tata Motors CEO Karl Slym’s earlier comment on the matter. The Internation Road

Federation is a “non-governmental, not-for-proﬁt organisation with the mission to encourage and promote development and maintenance of better, safer and more sustainable roads and road networks.” In a statement released to the press, Kapila says the move will worsen vehicle safety and pol-

lution. Kapila uses ﬁgures from European sources to argue that quadricycles have a worse record of road fatalities, 10 to 14 times higher than cars. Quadricycles also lack the safety features of cars, with Kapila claiming up to 40 safety features common in cars likely to be missing from quadricycles. These include protection against head and body impact, frontal crash protection and side door intrusion protection. Quadricycle emissions are also claimed to be eight times more than that of a petrol M1 category cars, and four times more than that of diesel N1 category pickups as per India norms. Quadricycles are used around the world for specialised purposes such as search and rescue operations, patrolling, mining and recreational activities such as golf. Quadricycles can also be used by the underage, who do not qualify for driving licences, or the elderly, who may no longer be ﬁt to operate motor vehicles. They may also be used as tempo-

rary transport when one’s main vehicle breaks down or one’s licence has been impounded, since quadricylces do not need a licence to operate. According to Kapila, such vehicles are not common in India because the current Central Motor Vehicle Rules (CMVR) have no provision for approving such vehicles. The matter was brought to the notice of bodies such as the Automotive Research Association of India (ARAI) and the Ministry of Road Transport. Later, says Kapila, when a committee was appointed by the Karnataka High Court to look for ways to improve three-wheeler safety, “this real agenda was hijacked and issue got diverted when quadricycle got proposed under the garb of committee recommendations”. The quadricycle matter has created deep divisions in the auto industry. Karl Slym, CEO of Tata Motors had slammed it as a “backwards” move a month before the government gave its

ﬁnal nod. The Society of Indian Automobi le Ma nufacturers (SIAM) has been unable to reach a consensus on the matter. It may be noted that Tata Motors had expressed interest in building a quadricycle a decade ago, with Bajaj and Maruti then opposing the move on safety grounds. Bajaj Auto is currently the only Indian automaker with a quadricycle model ready, having showcased their RE60 quadricycle concept at the last Indian Auto Expo. Bajaj have been quick to defend the quadricycle, claiming that the vehicle will deliver twice the fuel economy of a small car while halving carbon dioxide emissions. A major auto rickshaw manufacturer, Bajaj sees the quadricycle as a replacement for auto rickshaws, offering better safety and comfort while being less polluting. Apart from Bajaj, Mahindra & Mahindra, Piaggio, Eicher and Polaris Motors have also shown interest in developing vehicles for the quadricycle segment.

TVS Logistics acquires Wainwright Industries

VS Logistics Services Ltd., India’s leading t h i rd-pa r t y logistics service provider, today announced the acqu isit ion of US-ba sed Wainwright Industries, an endto-end supply chain provider headquartered in Missouri, USA. The acquisition is expected to help the company add unique service capabilities such as ‘cross docking’ and sub-assem-

bly for manufacturers, and enable TVS Logistics to move up the value chain. This is the second acquisition by TVS Logistics in the US after it acquired Manufacturers Equipment and Supply Company (MESCO) in 2011. In line with TVS Logistics’ policies, it will retain the existing management and David Robbins will continue to manage the business in US. Announcing the acquisition,

R. Dinesh, Managing Director, TVS Logistics Services Ltd., said, “With the acquisition of Wainwright, we have covered all the capabilities required to provide end-to-end production supply chain solutions. With this, we can go to the customer to offer a complete outsourcing model.” S. Ravichandran, Executive Director, TVS Logistics Services Ltd., said, “Wainwright’s service

M&M Q4 Operating proﬁt up 42 pc

ahindra and Mahindra Limited have announced the financial results for the quarter ended 31st March 2013 of the company, and the audited results for the year ended 31st March 2013 for the company and the consolidated Mahindra Group. Mahindra Vehicle Manufacturers Limited (MVML), located at Chakan near Pune, was set up as a 100 percent subsidiary of the company with a view to sourcing contemporary products for expanding the market offerings of the company. Combined results of the company and MVML have been given to provide a comprehensive view of the company’s performance. Q4 F2013 – M&M + MVML results The gross revenues and other income of Mahindra & Mahindra Ltd. and MVML during the quarter ended 31st March 2013 is `11,342.3 crore as against `10,333.6 crore in the previous year – a growth of 9.8 percent. The profit before exceptional items and tax for the current quarter is `1,230.4 crore as against `868.0 crore in Q4 previous year – a growth of 41.8 percent. Operating margin for the combined entity in the current quarter is 14.4 percent as compared to 12.0 percent in the last Q4. The good growth in the operating margin and profits of the entity during the quarter is due to a strong sales performance by its automotive sector and focus on

cost control. Q4 F2013 – M&M Standalone results The gross revenues and other income of Mahindra & Mahindra Ltd. for the quarter ended 31st March 2013 is `11,365.8 crore as against `10,288.4 crore during the corresponding period last year – a growth of 10.5 percent. The profit before exceptional items and tax for the current Q4 is `1,112.2 crore as against `794.3 crore in the same period last year – a growth of 40.0 percent. After considering exceptional items and tax, the net proﬁt for the current quarter is `889.2 crore against `874.5 crore in Q4 last year – a growth of 1.7 percent. F2013 – Group consolidated results The consolidated gross revenues and other income for the year ended 31st March 2013 grew by 17.4 percent to `74,403.0 crore (USD 13.7 billion) from `63,357.8 crore (USD 11.7 billion) last year. On account of a change in the status of Tech Mahindra from a joint venture to an associate effective 31st Aug 2012, the revenues reported above include M&M’s share of Tech Mahindra revenue only till end Aug 2012. On a like-to-like basis the growth in the consolidated revenues in the current year is 20.6 percent over the previous year. The consolidated proﬁt after tax and after deducting minority interests for the year is `4,099.2 crore (USD 756.0 million) as compared to

`3,126.7 crore (USD 576.7 million) in the previous year – a growth of 31.1 percent. The Group at the end of the year comprised of 123 subsidiaries, five joint ventures and 12 associates. A full summation of gross revenues and other income of all the group companies taken together for the whole year F2013 is `8,8093 crore (USD 16.2 billion). M&M Outlook Statement The tight macroeconomic constraints that had tethered the Indian economy for the past several quarters seem to have eased somewhat in the last few months. Looking forward, we expect the Indian economy to stage a mild, consumption-led recovery in F2014. Subject to a normal monsoon, as forecast by the Indian Meteorological Department, agricultural growth is likely to see considerable improvement in F2014, leading to a steady moderation in inflation and a bounce back in rural incomes, and consumer demand. At the same time, with the advanced economies expected to witness a recovery this year, exports are likely to maintain the momentum witnessed in Q4. Private investment demand, however, is likely to remain weak. It may show a significant pick up in case there is a concerted policy action by the government. Overall, our outlook on the economy, while more positive than six months ago, remains cautious and watchful.

offerings are additive to TVS Logistics and would help in creating higher value for customers. Cross docking and sub-assembly are key value additions of this acquisition and we believe these future services need to be implemented in India.” David Robbins, President, Wainwright Industries, said, “Both the companies share a lot of common values and synergies in our respective businesses.

This deal also gives Wainwright tremendous potential to expand its offering across USA.” Wainwright’s key strength is providing seamless integration with the manufacturing process through its cross docking capability. Cross docking is a document control and traceability system through which materials are managed and supplied for just-in-time production.

Hyundai’s ‘First Ball Tour’ campaign

yundai Motor India Limited (HMIL), a subsidiary of HMC, the fastest-growing automaker by brand and official partner for the International Cricket Council (ICC) today showcased the ‘First Ball’ for ICC Champions Trophy 2013. Hyundai holds the exclusive rights to showcase the set of cricket balls of the first match between India and South Africa, scheduled for June 6, 2013 at Sophia Gardens, Cardiff, England. The first ball preview has been organised at Hyundai showrooms from May 30 to June 4, 2013 in New Delhi (May 30-June 2),Mumbai (May 30-June 2), Chennai (June 1-2), Kolkata (June 1-2), Dehradun (June 1), Pune (June 3-4), Ahmedabad (June 4), and Chandigarh (June 4). This ‘First Ball’ showcase was conceptualized to provide cricket fans with an opportunity to celebrate the moments of the ICC Champions Trophy 2013 in England. Representatives from Hyundai will hand over the set of balls to the match umpires prior to the opening match between India and South Africa. Rakesh Srivastava, Sr. Vice President, Sales and Marketing HMIL, said, “HMIL is passionate about its association with ICC for all cricketing events as an official partner till 2015. With the showcasing of the ‘First Ball’

for the ICC Champions Trophy 2013, we aim to reach out to our customers and provide them with a unique experience to connect with the tournament while building up the momentum for the cricketing extravaganza.” For Hyundai customers, the ‘First Ball’ will travel through eight cities before reaching its ﬁnal destination in England. The cricket balls will be displayed in specially branded Hyundai cars at Hyundai showrooms. To add to the excitement among cricket fans, special activities are being organized at the dealership which will include games, cricket trivia quizzes and ball juggling contests. Fans can also pen their thoughts on cricket balls provided by dealerships and cheer for their favourite teams. These balls will be collected from all over the country and a mega Hyundai Good Wish Wall will be created at the Hyundai ICC Fan Park in Delhi, and a smaller replica of the wish wall will be showcased at various Fan Parks across the country. Additionally, fans can visit the Hyundai showroom for a preview of the cricket balls. The current location of the balls can be followed on Hyundai’s Facebook and Twitter pages. During this season, Hyundai India, in association with ESPN Cricinfo has organised the Hyundai Cricjockey contest.

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3 JUNE 2013

NEWS

Honda inaugurates two-wheeler plant in Karnataka Two-wheeler production in India to increase 64 percent

onda Motorcycle & Scooter India Pvt. Ltd. (HMSI) has inaugurated its third two-wheeler plant in Narsapura, district Kolar, Karnataka. Present at the inauguration ceremony were the Union Minister of State for Medium & Small Scale Industry KH Muniyappa, Yoshiyuki Matsumoto (Managing Officer, Honda Motor Co), Mr. Keita Muramatsu (President & CEO, HMSI) and Yadvinder Singh Guleria (Vice President, Sales & Marketing, HMSI). Spread over 96 acres, Honda’s the two-wheeler plant in Narsapura is situated in the Narsapura Industrial Area, which is around 52 km from Bangalore. The new plant employs approximately 4,500 workers and entails a total investment of `1,350 crores. HMSI currently has plants at Manesar and Tapukara in north India. Starting operations in June, Honda’s new plant will have 12 lakh units production capacity in phase one. Aiming at market leadership, Honda have also announced an additional increase of 6 lakh units capacity in phase two of this plant taking its annual capacity to 18 lakh units by the end of this fiscal year. With its three plants, Honda will significantly increase its cumulative annual production capacity

by 64 percent in just one fiscal. To co-exist and harmonize with local society, the infrastructure of this factory has been designed under Honda’s concept of “Joy to the Next Generation”. It proactively reduces energy consumption during production. With its “Green Factory” concept, Honda can meet over 30 percent of its annual water requirements using their internal rain harvesting system. It is also claimed to be Honda’s most-environmentally responsible plant with zero liquid discharge. In addition to water saving system, Honda has employed more advanced machining automation, high speed transfer line, robotic welding and painting of frame parts to making this manufacturing facility a benchmark in the two-wheeler industry. Speaking on the occasion, Yoshiyuki Matsumoto, Managing Officer, Honda Motor Co. said, “In the current fiscal year 2014, Honda’s global two-wheeler sales growth is expected to increase more than the previous years and head to new heights by its operations in India. There is no doubt that India is one of the most important markets for Honda’s overall business. Today we establish a new milestone with the inauguration of our third manufacturing facility in India in the state of Karnataka. Out of

the total of 4500 new positions at this facility, nearly 90 percent are being offered to the local youth.” Keita Muramatsu, President & CEO, HMSI said, “We are thankful to the Government of Karnataka for providing Honda an opportunity to invest and expand the brand in the state. With the inauguration of our third plant which is 2,200 km from the two existing plants in North region, Honda aims to deliver high quality and advanced two-wheeler products

of low CO2 emissions to the customers faster in the south region. The expanded production capacity will be further supported by aggressive growth in network to 2,500 outlets and rapid new product introduction as we aim for market leadership.” Giving a perspective on the signiﬁcance of this expansion near Bengaluru in the south region, Mr. Yadvinder Singh Guleria, Vice President, Sales & Marketing, HMSI said, ”We

shall start the mass production of Dream Yuga in this plant from June, which is targeted to cater 100-110cc motorcycle segment contributing almost half of the total 1.4 crore two-wheelers sold in India. Moreover, our million selling Activa scooter will be produced on the second line. Honda occupies the number one position in Bengaluru, which city has the highest market demand for two-wheelers among all cities in India.

Tata Motors launches CV driving school

ata Motors recently inaug urated a com mercia l veh icle driv ing centre in Singrauli, a partnership between Tata Motors and the Urjanchal Driving School. The cent re was inaug urated by Shivraj Singh Chauhan, Chief Minister of Madhya

Pradesh, with senior ofﬁcials from Tata Motors. The key objective of the initiative is to provide product and road safety through “defensive driving” techniques for aspiring and existing commercial vehicle drivers. Tata Motors have provided support in the form of designing the course content,

technical assistance, knowhow and guidance. Pratham Institute, a reputed national NGO, has been roped in as the implementation partner. A huge demand for commercial vehicle drivers is anticipated at current and upcoming energy and mining centres at Singrauli. The training centre is

equipped with class rooms and a testing track. This institute will operate two modules, one for light commercial vehicles and the other for heavy commercial vehicles. Courses will be conducted using audiov ideo methodologies and practical sessions. Each module can accommodate 25 students.

Shivraj Singh Chauhan, Chief Minister of Madhya Pradesh, at the inauguration.

The course also includes sessions in basic vehicle maintenance, first-aid, financial literacy, health, soft skills and yoga, giving the trainee a holistic perspective. India ranks highest in the world in road fatalities, with about 1.43 lakh incidents occurring annually (as per a report published by the Ministry of Road Transport & Highways - June 2012). There is also a huge shortage of trained drivers in the country. The National Skill Development Corporation (NSDC) has estimated a demand for over 50 lakh drivers over a period of 12 years starting 2010. Tata Motors’ initiative is meant to address the issue of road safety and help in providing employment opportunities to the youth. The company has opened eight such training centres in the last year and a half, and is looking to train more than two lakh youth by 2021 through such centres.

ChangeMyTyre.com ties up with Mahindra First Choice

hangeMyTyre.com, India’s f irst t y re e-commerce portal has partnered exclusively with Mahindra First Choice Services Ltd. (MFCSL), India’s first multi-brand car workshop. As a result of this exclusive tie-up, Mahindra First Choice Services will now be the priority ﬁtment centre for ChangeMyTyre customers across various cities. With over 100 ﬁtment centres in 45 cities,

ChangeMyTyre.com will now offer tyre services at 16 more locations. Catering to the increasi ng dem a nd s on l i ne, ChangeMyTyre.com will now have specialized ﬁtment centres in Bangalore, Hyderabad – Balanagar & Madeenaguda (Hyderabad) Thane, Chennai – Guindy, Nerkundram and Ambattur, Coimbatore, Nellore, Pune – Hadapsar & Bawdhan, Surat, Vapi, through Mahindra

First Choice and also upcoming outlets at Hyderabad L B Nagar, Cochin, Nerul (Navi Mumbai), Ghaziabad. These are modern workshops with innovative technology like test lane, under chassis washing and lube bay systems. ChangeMyTyre.com will also be the exclusive suppliers of tyres required by Mahindra First Choice Services. Neeraj Chauhan, CEO & Founder, ChangeMyTyre.com commented, “Since the incep-

tion last year ChangeMyTyre. com has witnessed constant growth amongst the tyre sales in India. Our endeavor has been to provide the best service and prices to our customers at all times. MFCSL with its best in class infrastructure and service orientation will certainly deliver greater value to ChangeMyTyre. com customers” Yadvender Yadav, Operations Head, Mahindra First Choice Services added “We are glad to

partner with ChangeMyTyre. com across cities as it helps our customers to have convenient access to ChangeMyTyre offerings which will enhance customer satisfaction. Apart from experiencing world class tyre fitment ser vices, the customers can avail various services that Mahindra First choice Services Ltd. offers including paid service, running repairs and MDP (minor denting painting) under one roof.”

3 JUNE 2013

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REPORT

Demand remained weak in April 2013 Passenger car volumes decline 10.4% YoY, utility vehicles grow 4.0%; CV volumes up 0.7%; three-wheelers witness strong export volumes.

Passenger Vehicles: Volumes shrink for the fifth consecutive month on a YoY basis Domestic passenger vehicle (PV) volumes declined by 8.2% YoY in April 2013, making it the fifth consecutive month of negative growth for the PV industry. While most PV segments shrunk in size, consumer demand was particularly weak for compact segment cars (that account for 30% of domestic PV volumes) whose volumes declined by 17.6% YoY. The Utility Vehicles (UV) segment, which had grown by 52.2% in 2012-13 over the previous year, also experienced a significant moderation in its momentum reflected in volume growth of 4.0% YoY. In our view, this was attributable to the high base of April 2012 (when volume run-rate of few new models was on the ascendency), recent hike in excise duty on SUVs and rising diesel prices. In terms of discounts, OEMs demonstrated a mixed strategy in April: select OEMs chose to reduce the quantum of discounts while others either maintained discounts at levels prevailing in Q4 201213 or increased concessions. Amongst top five OEMs in India,

by sales volumes, Maruti Suzuki and M&M recorded ﬂat volume growth; while Hyundai, Tata Motors and Toyota saw their volumes shrink during April 2013 on a YoY basis. Overall, domestic PV demand continues to remain dull and discounts-driven sales push is likely to remain the salient theme in the near term.

addressable product segments. Even on the exports front, industry volumes have been tepid in the wake of hike interest rates in several countries, tariff increases and trade restrictions imposed by select countries and increase in product prices (to offset reduction in export incentives) by Indian OEMs.

Two Wheelers: Domestic volumes remain flat in April 2013

Commercial Vehicles: Domestic CV volumes grow by 0.7% in April 2013 compared to a decline of 7% in H2 2012-13

The domestic two-wheeler (2W) industry volumes grew by 0.9% YoY in April 2013 with motorcycles segment volumes (73% of industry volumes) shrinking by 2.1% YoY, scooter segment volumes (21% of industry volumes) growing by 14.7% YoY and moped volumes (6% of industry volumes) declining by 7.2% YoY. Within the motorcycles segment, the 100cc sub-segment, which accounts for 64% of total motorcycle segment volumes, remains the primary weak spot. This segment had seen its volumes decline by 1.9% in 2012-13 over the previous year and continued to remain weak in April 2013 (3.2% YoY decline). Hero MotoCorp, the market leader, who commanded a share of 45.1% in the domestic 2W market in 2011-12, saw its share drop down to 42.9% in 2012-13 and 41.8% in April 2013. At the same time, Honda has continued to grow well, notwithstanding overall industry weakness, on the back of market share gains across its

After witnessing a decline of 7% in H2 2012-13, the domestic CV sales (in volume terms) grew by 0.7% in April 2013 on a YoY basis led by growth in the passenger carrier segment of both LCV and M&HCV segment. The extent of drop in M&HCV (truck) sales also reduced to 10% compared to 30%+ drop witnessed by the segment over the past ﬁve months. In our view, the lower drop in volumes is largely on account on low-base of the prior year. On the ﬂip side, the LCV (truck) segment has started showing some signs of sluggishness with growth moderating down to 3.1% in April 2013 compared to 15% in H2 201213 and 17% in H1 2012-13. Overall, the demand continues to shift in favour of 2-3.5t segment on back of increasing acceptability of newly launched models in that segment.

The domestic three-wheeler segment witnessed a growth of 7% in April 2013 on back of modest fresh permit issuances as well as replacement demand. Compared to relatively weaker demand in 2012-13, the growth in the domestic three wheeler segment in April could be attributed to both – passenger as well as goods carrier segment. On the exports front, the demand for three-wheelers appears to be stabilizing now (up 19% in April) on back of low-base of the prior year which saw sharp contraction owing to sharp rise in import duties in Sri Lanka.

Three Wheelers: Domestic three-wheeler volume

Tractors: Festive April brings spurt in demand

Consumer sentiments in tractors were alleviated by expectation of a near normal monsoon season, while build-up of channel inventory also contributed to the growth.

expand by 7% in April; Export volumes too jump sharply

Sale of tractors witnessed a jump in April-13 with festivals like Gudi Padwa and Navratra falling in April, instead of March, as in the previous ﬁscal. Consumer sentiments in the tractor market were alleviated by expectation of a near normal monsoon season, while build-up of channel inventory by market participants also contributed to the growth in wholesale numbers in April-13. Volumes in Southern and Western parts of the country recorded positive growth in April-13, which have otherwise witnessed sharp decline for most of 2012-13 and held back overall industry growth. While tractor industry is expected to have grown by over 20% in April-13, M&M’s total sales increased by 38%, and Escorts witnessed a 42% jump in volumes in the previous month.

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3 JUNE 2013

G L O B A L WAT C H

Audi pulls the plug on the electric R8

Hyundai lights up Piccadilly Circus for next ﬁve years

udi has confirmed that it has scratched plans to put its all-electric supercar, the R8 e-tron, into production. “At the moment I don’t see an economically interesting business case with the price and the energy density we would be able to deliver [with current battery technology],” says head of research and development Wolfgang Durheimer. “Each car costs us 1 million. It cannot be subsidised by the customers for our existing vehicles and we are not willing to lose money selling it. But the R8 e-tron is a showcase for what is possible, and our findings from developing it will find their way into all future Audi applications of e-mobility.” Just 10 R8 e-trons have been built, and their future is likely to be as museum pieces after a further test programme. “We are not allowed to sell them, so ownership will have to remain with Audi,” said one company insider. The R8 e-tron was to have been a rear-wheel-drive green supercar

to rival the Mercedes-Benz SLS E-CELL. With a T-shaped battery pack running along the spine of the car and behind the passenger cell supplying two independent 140kW motors mounted on the rear axle, it is said to be capable of 0-60mph in around four seconds. The theoretical top speed is 160mph, though it is restricted to 125mph “for efﬁciency reasons”. Audi claims a maximum range of 135 miles, or 100-110 miles with “sporty driving”. One has

completed two laps of the infamous Nurburgring in Germany - around 26 miles - in the hands of a professional racing driver and at racing speeds without grinding to a halt. All of the 10 that have been made are showroom-ready, with the reﬁnement, operational smoothness and attention to detail that’s become synonymous with Audi. Sadly, only company insiders will now ever get to ﬁnd this out for themselves.

yundai has confirmed it will retain its place on the iconic Piccadilly Lights in central London. The advertising landmark and tourist hot-spot will display the brand’s advertising until October 2018, helping Hyundai to raise awareness of its brand, following an initial twoyear agreement signed in 2011. Tony Whitehorn, CEO of Hyundai Motor UK, commented, “We have had a prominent position on the world-famous Piccadilly Lights for nearly two years now. During that time, Hyundai has increased sales and market share in the UK. The new five-year partnership will help further build the Hyundai brand and enable us to share Hyundai imagery and information through one of the most prominent and renowned advertising spaces in the world.” Since 2011, passers-by have seen a variety of innovative brand films and product videos . To celebrate UEFA EURO 2012, Hyundai

even developed a smartphone app which used giant QR codes, displayed on the Lights, to enable users to take football-themed photos in front of the London landmark to share via social media. Situated in Piccadilly Circus at the heart of London’s West End, the Lights are seen by a huge number of people, from commuters to tourists. A recent study into footfall around the Lights during core daytime hours found that over a week-long period, an estimated 2 million people passed the iconic site. Of these, 1.38 million were on foot, increasing their chances of viewing Hyundai’s advertising, raising awareness of the brand. Additional data showed that the Piccadilly Lights have a truly global appeal with around half of the people passing through visiting from overseas. Demographic reach includes a broad age range, with almost three quarters of people viewing the Lights being under 45. W h itehor n cont i nued, “Hyundai’s sales growth in the

past few years has been driven by a new generation of vehicles that demonstrate our European focus in terms of design, quality and technology. Now, we want to further raise awareness of the Hyundai brand, and the Piccadilly Lights will play a key role during the next ﬁve years in appealing to and engaging with new and existing customers.” In 2012 Hyundai posted its best ever UK sales of over 74,000 new cars, resulting in a market share of 3.6%. The company ranks among the UK’s top 10 automotive manufacturers by sales, having climbed from 21stposition in 2008. In the four months to the end of April this year, Hyundai registrations in the UK were 11.8% ahead of the same period in 2012.

THINK! road safety resources for children

new online resource to help teachers plan road safety lessons for schoolchildren has been launched by UK Road Safety Minister Stephen Hammond. The THINK! Resource Centre (http://think. direct.gov.uk/resource-centre/) brings together a wide range of road safety materials for children and teenagers in one place. It will allow teachers, road safety ofﬁcers and anyone teaching road safety to plan lessons easily and effectively. Stephen Hammond said, “Road deaths are at a record low and child casualties have fallen considerably in recent years, but we know there is room for improvement and I am determined to reduce casualties even further. THINK! education resources are already highly regarded, but we wanted to make them much easier to use in road safety lessons. This new online resource will be used by teachers across the country to give children the skills and knowledge they need to stay safe on the roads.” The materials are organised into 25 easy-touse themed lesson packs and aimed at all ages, from early years to Key Stage 4. Each Lesson Pack is clearly labelled by Key Stage and includes a lesson plan and a range of teaching resources such as online games, posters, stories, ﬁlms and ideas for activities both in and out of the classroom. The packs also include information and activities for parents and carers, to ensure children are taught consistently at school and at home.

3 JUNE 2013

Auto Monitor

CLASSIFIEDS

ADVERTISER’S LIST Advertiser’s Name & Contact Details ACE Micromatic Group

Pg No

Advertiser’s Name & Contact Details

1, BC

G W Precision Tools India Pvt Ltd

Pg No 12

Advertiser’s Name & Contact Details Pg No Mahr Metrology India (P) Ltd.

T: +91-80-40200555

T: +91-80-40431252

T: +91-44-42170531

E: customercare@acemicromatic.com W: www.acemicromatic.net

E: info@gwindia.in

E: r.ganesan@mahr.com

W: www.gwindia.in

W: www.mahr.com

Greaves Cotton Limited Basant Mechanical Works (Regd)

T: +91-22-24397575 E: rahul.rao@greavescotton.com

E: infobasantgroup.com W: www.basantgroup.com

W: www.greavescotton.com Haas Automation India Pvt Ltd 15

T: +91-80-43438102 E: imtndia@zeiss.co.in W: www.zeiss.co.in

Dhoot Transmission Pvt Ltd

E: sales@dhoottransmission.com

Engineering Expo

Mitsibishi Electric India Pvt. Ltd. T: +91-20-27102000

E: indiasales@haascnc.com

E: info@mei-india.com

W: www.haascnc.com

W: www.MitsubishiElectric.in 23

T: +91-124-3207398

E: info@hetrace.com

E: sales@padminiengg.com

W: www.hetrace.com

W: www.padminivna.com 22

Padmini VNA Mechatronics Pvt. Ltd.

T: +91-161-5027178

Igus India Pvt Ltd

W: www.dhoottransmission.com

T: +91-22-66098830

Harkaram Enterprises

Metro Tyres Ltd T: +91-120-4147414

T: +91-161-2530529

Carl Zeiss India (Bangalore) Pvt Ltd

Power Engineers & Consultants

T: +91-80-39127800

T: +91-161-3294989

E: info@igus.in

E: info@energysaver.in

W: www.igus.in

W: www.powerengineers-india.com

T: +91-9819552270 Jyoti CNC Automation Pvt. Ltd.

E: engexpo@infomedia18.in W: www.engg-expo.com

Ferromatik Milacron India Pvt Ltd

E: salesfmi@milacron.com W: www.milacronindia.com

Fox Solutions

The leading source for automotive parts, components & accessories.

E: sales@foxindia.net W: www.foxindia.net

FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

FIC

E: info@jyoti.co.in W: www.jyoti.co.in

E: charu.gulati@tatamotors.com W: www.tatamotors.com 23

Universal Corporation

T: +91-09872012333

T: +91-22-23422238

E: info@hydraulicssolutions.org

E: samson7@vsnl.com

W: www.hydraulicssolutions.in

W: www.samson-grp.com

Mahindra Navistar Automotives Ltd

T: +91-253-6618100

Tata Motors Ltd. T: +91-22-66586195

KDM Enterprises

T: +91-79-25890081

BIC

T: +91-2827-287081

T: +91-9930258832

World Courier India Pvt Ltd

T: +91-80-43438607 E: ripudaman@worldcourier.co.in

W: www.mahindranavistar.com Not Applicable

W: www.worldcourier.com Our consistent advertisers

Auto Monitor

3 JUN 2013

THE OTHER SIDE

Getting Personal with Rajeev Panse, MD & CEO, Panse Autocomps

If not in the auto industry, where would you be? In the navy. What car do you drive? What do you dream of driving? A Mitsubishi Pajero. I would love to own and drive around in the Land Rover Discovery someday.

In Real Life Rajeev Panse founded the Panse Group in 1983. Although he had no business background, he was driven by the desire to be an entrepreneur and make his mark in the industry. Panse holds a bachelor’s degree in mechanical engineering and a diploma in business management.

What are you currently reading? Execution: The Discipline of Getting Things Done by Ram Charan and Larry Bossidy. An outdoor activity you would miss ofﬁce for… Trekking. Where did you go for your last holiday? The Himlayas. You get angry when… Corruption makes me angry. What is the one thing you would like to change about yourself? To have more patience.

Illustration: Sachin Pandit Compiled by: Abhishek Parekh

The best thing to have happened to you… Being in the auto industry and an entreprenuer

An experience I won’t forget… Years ago, early in my career as a management trainee with Tata Motors, I had the opportunity to hear an inspiring talk by the legendary JRD Tata, the then Tata Motors Chairman. He talked about the importance of pursuing excellence rather than perfection in anything that an individual pursues in his or her life. This enriching thought had a very deep impact on me. I have tried to follow this philosophy throughout my career.

Regn. No. MH/MR/WEST/20/2012-2014. RNI No. MAHENG/2000/11414 Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001. Date Of Mailing:16th & 17th Fortnightly Issue. Date Of Publication: 13th of Every Month