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. 11 No. 06
w w w. a u to m o n i to r. co . i n
1-15 April 2011
INTERVIEW MOST OF OUR COMPANIES HAVE EXCEEDED THE SALES OF LAST YEAR IN THE FIRST NINE MONTHS ITSELF Vivek Chaand Sehgal, Chairman, Samvardhana Motherson Group
Pg 08
V
isteon is looking at entering the two-wheeler segment in India and other markets with special focus on lighting, instrument cluster or driver information and fuel management systems. ‘We are looking to leverage our existing expertise in the two-wheeler segment. There are a few challenges to overcome as operating conditions for the twowheeler segment are significantly different from the passenger car segment,’ said Senior Vice President and President, Global Customer Group, Visteon Corporation, Robert Pallash. He added that the company’s expertise in driver information and fuel management systems would be particularly challenged as these components operate in open environmental conditions including rain, dust or sunshine. He added that 3M India and Visteon are evaluating collaborating on two-wheeler project as well.
DATA MONITOR Domestic Top 5 PV-makers Sector
Feb-10
Feb-11
Change
MSIL
84,765
101,543
19.79%
TML
31,933
36,250
13.52%
HMIL
31,001
32,629
5.25%
M&M ^
12,801
14,691
14.76%
GMI
11,062
9,283
-16.08%
Domestic Top 5 2W-makers Sector
Feb-10
Feb-11
Change
HHML
372,387
462,953
24.32%
BAL
175,812
205,145
16.68%
TVS
121,403
151,526
24.81%
HMSI
115,154
132,762
15.29%
IYM
17,131
23,384
36.50%
Domestic Top 5 CV-makers Sector
Feb-10
Feb-11
Change
TML
34,257
36,789
7.39%
M&M
9,601
9,500
-1.05%
ALL
7,092
8,984
26.68%
VECV Eicher
3,007
3,663
21.82%
FML
1,557
1,294
-16.89%
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
Design Innovation and New product development
Procurement and Supply chain
Manufacturing and Operations
Administrative overheads
Alternate materials
Make vs buy
Power consumption reduction
Rate negotiations
VA-VE
Alternate sourcing
Fuel consumption reduction
Consolidation
Low-cost platform design
Global sourcing
Alternate methods for manufacturing
Value analysis
Frugal engineering
Zero-based costing
VFD installations
Logistics cost reduction
Early supplier involvement in design
Localization
Automatic dispensing systems
Tierization of vendors
Minimizing idle running
Volume based negotiations
Recycling & reuse of waste
Inventory reduction (JIT)
Burner type changes
Reverse auctions & e-procurement
Visteon to enter two-wheeler segment Abhishek Parekh Mumbai
48 Pages
` 50/-
AUTOPINION DRIVING AN ORGANIZATIONWIDE COST REDUCTION Pg 14 PROGRAMME
SMG augments global footprint
Pallash said t hat bring ing products to markets like India involves overcoming peculiar sets of challenges including mindset of developing products for low cost cars, cost management and lean manufacturing. Visteon is evaluating an entry into the incar entertainment segment in India through OEM or Robert Pallash, Senior Vice President, Global Customer aftermarket route. Group Visteon Corporation The entry in the of the project is wide enough to aftermarket could be in partnerinclude not only markets in India, ship with a third party entity to Brazil and Russia but also those help in reaching out to the end in Eastern Europe and former customers. Soviet Union block countries. ‘We have a history of working The project also lays fi rm ground with 3M India and we decided to for Visteon to better understand collaborate on the growth market market dynamics and enter difcar project keeping in compleferent market segments within mentary strengths in perspective,’ automotive sector in India and said Pallash on the collaboration other growth markets. with 3M. He added that the scope
T Murrali New Delhi
N
oida headqua r tered Samvardhana Motherson Group (SMG), is entering Thailand shortly and also establishing its footprint in Brazil and South Africa. Soon it plans to enter Russia and also enhance its presence in China and Japan. Plans to enter Macedonia and Turkey are also on the cards. SMG currently has about 100 companies in its fold with over 90 manufacturing facilities in 23 countries. In the next four years it hopes to add about 70 new companies, mostly through JVs and acquisitions. The group targets a consolidated turnover of $10 billion by 2015 from the current $2.2 billion. Chairman of SMG, Vivek Chaand Sehgal told Auto Monitor that the strategy, ‘is to bring in the best value and at the least cost.’ The group supplies to almost all Indian OEMs and this opens up opportunities from these companies’ overseas operation, through cross-selling.
Samvardhana Motherson Reflectec, one of the group companies, is currently setting up a plant in Thailand. It will have two or three projects in a single location in Chonburi industrial area. Thailand per se is a good market as the numbers, though not too huge, are good and the country has trade agreements with its neighbouring countries, he said. When asked if SMG’s Indian customers will benefit out of the new plant through free trade agreement, Sehgal said car makers will look for value and ‘I think more value will be added from India considering the value of USD at`45 and Thai Bhat at `29. It should be flexible both ways.’ Initially the plant in Thailand will make glass followed by mirrors. ‘Our people have also been approached to set up plastic manufacturing facilities for Ford and other OEMs. Everything is open and we will keep on building; we will continue to grow looking at opportunities to make parts that our customers ask us to supply. We don’t have any restrictions,’ he said. INTERVEIW--page 8
Emerging trends offer scope for Bosch in aftermarket T Murrali Bangalore
B
osch has recently hit a pay dirt during the World Cup cricket matches by offering ‘action replay’ option to mobile phone users, leveraging the Bluetooth technology. The replay comes with an ad from Bosch, which enhances the brand value substantially. The Vice President (Automotive Aftermarket) of Bosch Ltd, S Muralidharan tells Auto Monitor that ‘the use of technological mediums – mobile, Bluetooth, internet and SMS, in aftermarket is a new trend and is very cost effective. We have done it in the cricket matches where India is playing. The initial response is overwhelming.’ One cannot judge that these initiatives will get converted in to sales, however, it helps to strengthen the brand. ‘Very soon we are going to
have a plethora of such opportunities,’ he says. With the growing sales of diesel cars Bosch Car Service (BCS) operators who had hitherto been servicing multi-brand petrol cars have evinced interest in diesel services too. BCS primarily services petrol cars while the Bosch Diesel Service (BDS) handles utility and commercial vehicles besides, offering general service that confi ne to engine and related applications. Off late the sale of diesel cars has been increasing steadily and this will only increase further, with more players getting in to the fray, due to the price differential between petrol and diesel that doubled in the last nine months. ‘It will be a kind of BSC, which also wants to do pump repairs. In other ways we can say that the diesel service workshop, which wants to do forward integration and get
AHMEDABAD PUNE CHENNAI INDORE
S Muralidharan, Vice President (Automotive Aftermarket), Bosch Ltd
in to car service. We have just appointed BCS with service facility for diesel vehicles, in Gujarat.’ The company is also in planning to introduce the concept in Madhya Pradesh soon. It sees this trend catching up in smaller towns due to the trust the end users repose on the garages and the intent to get full basket of repair services. Initially there was an apprehension as the investment could be a deterrent but a short experience has shown that people are willing to go in that direction.
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Bosch has also sensed an emerging trend in three-wheeler channel. According to a recent study conducted by ACMA India is the largest three-wheeler market in the world and the current vehicle parc is more than 3.5 million. This segment accounts for 46 percent of the aftermarket, which is estimated at `33,000 crore. Muralidharan says that contrary to the perception the three-wheeler customers do not want low quality spare parts. ‘We want to go deep in to it,’ he says.
CONTENTS CORPORATE Australian suppliers to explore JVs with Indian counterparts
06
Victoria State of Australia sends 12 companies to India seeking business prospects
Visteon, 3M India display vehicle interior technologies
12
Unveils range of car interior technologies for current and future customers’ requirements
GLOBAL WATCH
Shell to re-launch bike lubricant portfolio
17
Re-launching its Shell Advance lubricant portfolio for bikes
M and M Auto to enter four wheeler segment
18
Plans to enter four-wheeler segment and set up a new plant in Aurangabad
Japanese auto Cos defer production due to severe impact of earthquake
38
Several auto companies halted production due to shortage of parts
Olof Persson appointed new Volvo CEO
41
GM’s Opel cuts output in Germany, Spain amid Japan parts shortage
42
Porsche stock sale to cut debt to $2.1 billion
43
Will assume the new position in September this year
22
Will suspend car production at Opel plants
To cut debt with the proceeds from a five billion euro stock sale
46
THE OTHER SIDE
08
Domestic players dominate counterfeit market
David Johnson, President & Chief Executive Officer, Achates Power
22
Counterfeiting has evolved into a burgeoning industry in the Indian aftermarket
JCBL to expand product portfolio
Johnson earned a Master of Business Administration and a Bachelor of Science in Mechanical Engineering from Cornell University. Johnson was previously vice president of product operations for military and export markets at Navistar.
28
Plans to add new products to its portfolio, especially in the specialty vehicle category
Automechanika Istanbul zooming to a record participation
30
Istanbul is gearing up for the Automechanika, International Trade Fair for Automotive Manufacturing, Distribution and Repair
Sandeep Khosla
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6
Auto Monitor
1 - 15 APRIL 2011
CORPORATE
Australian suppliers to explore JVs with Indian counterparts Shobha Mathur Chennai
A
s a follow up to a successful visit by an Australian automotive delegation last February, the country is now sending twelve component and system suppliers, service providers and research fi rms from the state of Victoria to tap business opportunities in India between 10 and 19 April. To be led by the Member of the Automotive Industry Innovation Council, Barry Comben, most of the members of the visiting Auto Mission are mulling joint ventures with Indian counterparts besides strengthening their contact base in India. Spearheading the parleys would be Air International Thermal Systems Pty Ltd, Auto CRC, Cast CRC, Composite Materia ls Engineering Pt y Ltd, Commonwealth Scientific and Research Organization (CSIRO), Davies Craig Pty Ltd, The Federation of Automotive P r o duc t s Ma nu f a c t u r er s (FAPM), Futuris Automotive Interiors (Australia) Pty Ltd, Supertrim Pty Ltd, Toll Logistics, ZF Lemforder Australia Pty Ltd and Kangan Batman TAFE. Four of the seven visitors had been successful in establishing their footprint in India in terms of joint ventures, sales offices, export orders and technical col-
laborations while forming part of the last auto delegation. Three of them fi gure in the current mission as well with the aim of deepening their ties with Indian OEs and tier I suppliers. According to Senior Business Development M a n a g e rAutomotive India (Austrade), Adil Mohamed, the core capability of Victoria lies in the automotive sector, and hence, the special delegation from the state.
Exploring partnerships To profile the Australian suppliers, Air International had been in discussion with Indian component suppliers for establishing a joint venture during its last visit and is now keen to expand the level of local partnerships. It also plans to zero down on a prospective OE so that a suitable supply chain in collaboration with local partners can be laid down. Post the partnership, the company is mulling the set up of a manufacturing unit either at Chennai or at Pune for producing air conditioning units for OE manufacturers. ‘A ir Internationa l is a leading company in air conditioning and many Indian manufacturers are exploring opportunities of expansion in this space,’ explained Mohamed. Austrade is managing the visit of
Barry Comben, Member of the Automotive Industry Innovation Council
the Australian delegation. Another firm Davis Craig had in its earlier visit bagged a small order for supplying electric water pumps for petrol, diesel, hybrid and electric vehicles for General Motors and Mahindra & Mahindra under their new vehicle development programme. This year, Davis Craig expects to step up this business further. Also in engagement earlier with prospective partners was Futuris Automotive Interiors for manufacturing seat and trim components. It is now optimistic of its involvement taking a defi nitive shape. Supertrim that manufactures leather seat
covers is equally keen to establish a partnership with tier I seat suppliers for meeting the requirements of the Indian aftermarket and OEs. In 2009, Toll Logistics a provider of integrated logistics services had picked up a 40 percent equity stake in Bhandari Logistics for underta k ing Milkrun services. This acquisition made Toll one of the most significant foreign investors in India’s transport and logistics industry with the stake to be upped to majority level over the next two years. Toll has set up a sales office at Chennai and is eyeing further expansion of its operations in India. A global supplier of driveline and chassis technolog y ZF Lemforder is primarily targeting OE orders for chassis products that would be developed in Australia. Ford India for instance, has a Centre of Excellence in Australia where the design and engineering for the Figo was undertaken. ZF is mulling a partnership with Ford for chassis development for its new vehicle programme encompassing eight vehicles till 2015. ‘Many research and skill development companies also form part of the delegation and this is especially significant as India requires expertise in these areas,’ elaborated Mohamed.
Focus on skill development and futuristic technologies For instance, Kangan Batman TAFE offers special training in skill development for body painting and dent removal of vehicles as well as professional training for trainers and assessors. The Indian automotive industry is currently reeling under severe skill shortages and this could be an important area for collaboration for local suppliers. Auto CRC is a research fi rm for development of new vehicle technology while CSIRO spearheads technologies for light weighting of components resulting in fuel efficiencies through use of alternate material. Besides, it develops futuristic technologies in the hybrid and electric domain that could be useful in India where green vehicles still remain in the niche segment due to high costs. CSIRO is seeking an overseas partner for commercialisation of these technologies. On similar lines is Composite Materials Engineering that according to Mohamed can light weight some components by over six kilos through use of composite material, thereby cutting on component costs. The automotive delegation forms part of a larger Australian Mission spanning fi ve industry verticals and comprising sixtythree companies.
Toyota Kirloskar to ramp up capacity Our Bureau New Delhi
I
n order to cater to the increase in demand, Toyota Kirloskar Motor (TKM) has announced the ramp up of its annual capacity to 210,000 units. The company plans to int roduce second shif t operation, reduce Takt time (production time per vehicle)
to enhance production from April 2011. The compa ny has a lso postponed t he lau nch of Etios Liva from April to June this year due to the same rea son. V ic e C ha i r ma n, TKM, Vikram Kirloskar said, ‘t he dema nd for some of models like Innova, Etios and Fortuner are increasing tremendously. To keep up with the
growing demand we will be increasing our production. We want to reduce the waiting period for Etios to two months which is currently four to six months.’ The annual capacity of Toyota’s first plant in Banga lore will be increased from 80,000
units to 90,000 units in the third quarter of 2011. The carmaker
manufactures Innova, Corolla A ltis and Fortuner in this plant. The capacity of the second pla nt, which ma nufactures Etios, w ill be raised from 70,000 to 120,000 units. The company plans to commence the expansion process in a phased manner in July 2011 and finish it till the second quarter of 2012.
Inaugurates new dealership As a part of its expansion d r ive, Toyota i naug u rated a dea lership in Faridabad. This is the 151st dealership in the country and the first in Faridabad. ‘Wit h t he entr y into a new segment we have expanded our dealer network and boosted our service operations by employing new tools like dealership management system and express maintenance,’ Kirloskar said. TK M has reg istered a growth of 55 percent in sales in February 2011 compared to the same period last year. It sold 9,308 units in February 2011 against 5,993 units in February 2010.
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8
Auto Monitor
1 - 15 APRIL 2011
INTERVIEW
SMG looks at domestic market and reviving economies for aggressive growth Automotive component conglomerate Samvardhana Motherson Group (SMG) is looking at a consolidated turnover of $10 billion by 2015 from $2.5 billion reported in FY10. In order to reach this milestone the group is actively working on several projects. Chairman of SMG and Vice Chairman of Motherson Sumi Systems Limited (MSSL), Vivek Chaand Sehgal tells T Murrali about his plans. In 2009-10 Samvardhana Motherson Group reported `10,000 crore. How has been 201011 for you? In the third quarter results (of Motherson Sumi) our domestic sales are up by 68 percent. Most of the companies have exceeded the sales of last year in the first nine months itself. I think it is a very exciting year. We are ahead of all our targets all across. You have set a target of $10 billion for SMG in 2014-15 – are things panning out as scheduled? Yes it is on but for us what is very important is whether we can make the bottom line healthy. Top line is fine and anybody can grow it. What are challenges that you see in making the bottom line healthy? There is a definite lag period in the raw material supply, which will be an interesting challenge to face. The scale that we are growing now is very big - from $2.5 billion reported by 100 and odd companies to $10 billion by 170 plus companies. It will be interesting scale. That means SMG will have about 70 new companies in its fold the next five years? Yes because we believe that there will be many more joint ven-
tures. It is just an extrapolation. Interestingly, if the flow of the car production is maintained at the current level, the demand will be more. As you know about 70 percent of our business is outside India and we believe that the European and American markets have still not hit the levels of 2007 or 2008. So you are in a situation where you are going to look at upward trend globally and Motherson is excited about that. Would you be looking at acquiring companies overseas? Lot of companies overseas that are starting or reviving operations do not have cash reserves, since even the banks are struggling. So there will good opportunities for Motherson to look around. In addition, car makers are going to ask Motherson more, looking at the strong balance sheet. And this will also give us opportunities. With about 70 percent of the revenue coming from overseas and majority of those markets are yet to come back to the original levels – how have you been managing the show? You have to learn to reset when required. You have to have the capability to shut certain portions off and manage with the rest. What normally happens is that people
tend to keep the whole plant going, which increases the expenditure significantly while the output is low. Therefore it is necessary to take difficult decisions. The ability to understand the ground realities and how to react quickly is the key, where Motherson has also specialised in. How do the employees of your overseas companies take initiatives such as this? Amongst the acquirers lot of them do not talk to employees. y Motherson habitually lly talks to the employees and briefs them about ground realities. es. When we took over SMR, we actually went to every plant and addressed ddressed the entire workforce together. ther. We have answered the tough h questions. They would like to know what’s going to happen. And d if you hide it from them, then you will lose their confidence. We had let go 300 to 400 people during the recessionary trend. The markets are e back and we have hired about 700 0 to 800 people. We promised them m that even if we had let them go that hat we would take back, breaking the he tradition of Motherson, because of the special case and understanding. ing. Could you tell us about the technologies that you u are looking at to support your future ture plans? It depends upon which avenue we are growing. Generally nerally when we takeover a company any what we see is the ability of Motherson to catch the technology gy with people involved. We are quite secured when it comes to technology. hnology. Most of the buys are at the behest of our customers.
Can you tell us about an initiative that you are planning to deploy across all your companies? I believe that any company that is not profitable and does not have free cash will always struggle to implement any initiatives across board. Therefore the priority for any company should be to focus on free cash, so that automatically any initiative can be taken up. Motherson will focus on improving the bottom line and focus on free cash otherwise all efforts will go in vain. I am very fond of green initiatives and sustainability. What’s your plan to improve profitability? It is very relative to every company. The idea is to catch the figures and set them as benchmark. Then work on to chip away the cost. Unless and until it is a continuous effort to chip away the cost, the exercise will not be complete. At Motherson it is happening not only at the top
level but at the grass root level too. We have always been striving for the upcoming of people from the grass root level. We invite suggestions and methodologies for cost reductions, material etc. This will definitely lead to environmental benefits and also sustainability. Do you still see issues in getting raw materials at competitive cost in spite of the volumes that you churn out? Yes, we probably would be better off than some of the competitors. Most of our peers are even bigger than us. By and large our job is to chip away the cost. We deploy best practices developed in one company, across our group companies and plants so that the waste is eliminated from the system.
EDITORIAL To get ahead with the crisis
J
apanese are known for their resilience in recuperating from any sort of catastrophe but that doesn’t mean that the country should suffer from natural calamities often. Several thousands of people died in the recent earthquake and tsunami that hit Japan a couple of weeks ago. The consistency of the Japanese to put others before self even in such a cataclysm is remarkable and Auto Monitor salutes the people living in the land of the rising sun. In the short term, the devastation will enhance its fossil fuel consumption for power requirements due to prolonged closure of some of its nuclear power plants. Th is might trigger a rise in global crude oil prices. World over and in India, Japanese auto and component makers postponed their major growth plans. In India, Honda delayed the preview of Brio while Toyota deferred the official inauguration of its second plant. Despite achieving a significant milestone of rolling out its 10 millionth car, Maruti Suzuki cancelled its celebrations to commemorate the occasion. Most Japanese OEMs are assessing the impact of the calamity on component imports from their parent organisations. There could be some concerns on import of components from Japan, but it would be only for a short while. Some economists view this situation in a different way. Few think tanks feel that the aftermath of the earthquake and tsunami in Japan could divert liquidity that was hitherto into commodity trading etc., to nation building and manufacturing. Eventually, it might soften the commodity prices in the future. The new defi nition that the Union Budget 2011 spelt out on CKD imports is yet to assume clarity. The government had declared that CKD kits would attract a 10 percent customs duty on kits without assembled engines, gearboxes and transmissions. To the clarifications sought by SIAM, the government’s response came just a few hours before we went to the press. Now a new classification that has been put forth states that kits con-
taining assembled engines, gearboxes and transmissions would attract 30 percent customs duty. These would be more in the nature of ‘semi-knocked down’ kits. So now there would be three classifications CKD, CKD (with assembled engine, gearbox and transmission) and CBU attracting 10, 30 and 60 percent customs duties respectively. SIAM is likely to take a call on this issue soon. Prima facie this seems like clipping away the wings of OEMs who are currently importing CKD (as per earlier norms), that will result in prices becoming dearer for certain models; but it is not a bad idea as this will create more elbow space for maneuvering for different players in the industry. At a latter point it might also generate more employment opportunities. The big split between Hero Group and Honda has whetted the appetite of many including the end customers. As these two entities are gearing up their individual plans to battle it out in the market, the down side is that it will open up a plethora of opportunities for the end users in terms of quality products available at a competitive cost. About a decade ago, the industry witnessed a similar event when TVS and Suzuki parted ways. It will be interesting to see the new brand of Hero and the strategy of Honda, to grab market share. Among other stories and analysis you will fi nd in this issue, some interesting articles including Counterfeit parts, Visteon, Shell and JCBL. Do send us your feedback.
T. Murrali t.murrali@infomedia18.in
IMAGE of the fortnight
FORTNIGHT’S QUOTES ‘Volvo is a company with tremendously knowledgeable and exciting brands and I am truly looking forward to the task’ Olof Persson, New Volvo CEO
‘We will spare no effort in assisting the Japanese authorities.’ Dr Manmohan Singh, Prime Minister of India
‘Today is a day of pride for the full Maruti Suzuki family. As we reach this historic landmark . . . ’ Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India
‘Our production will not be affected by the disaster in Japan. We will bring components from Thailand’ Vikram Kirloskar, Vice Chairman, Toyota Kirloskar Motors
‘Words alone cannot do justice to the driving properties this sedan embodies. You have to drive it . . .’ Paul de Voijs, MD, Volvo Car India (on Volvo S60)
Auto Monitor Editorial Team Editor T. Murrali Principal Correspondent Abhishek Parekh Senior Correspondent Nabeel A Khan Correspondent Shambhavi Anand Contributing Editors Sirish Chandran Bertrand D’Souza
Design & Photography Chief Photographer Mexy Xavier Asst. Art Director Varuna Naik Senior Designer Mahesh Talkar Scanning & Colour Correction Ravikumar Potdar, Ravi Salian, Sanjay Shelar Production Team Dnyaneshwar Goythale, Vikas Bobhate, Pravin Koyande Photographer Neha Mithbawkar, Joshua Navalkar
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Goran Larsson, President Volvo Cars, Malaysia and Paul de Voijs, Managing Director, Volvo Auto India at the Army Polo Club for the launch of Volvo S60
Volvo S60: World’s first car to have ‘Pedestrian Detection’ Swedish carmaker Volvo Auto India launched S60 in the premium sedan segment which will be available in both petrol and diesel variants. Priced between `27 lakh to `34 lakh (Mumbai without Octroi and Delhi), there will be three models of the sedan available in the market, D5 Knetic, D5 Summum and T6 Summum. S60 is the fi rst car in the world to have a ‘Pedestrian Detection’ system which enables the car to detect pedestrians in front of the car warn the driver and automatically apply full braking power in case of late response from driver. It is also enabled with other safety features like Adaptive Cruise Control (ACC), Advanced Stability Control, and Collision Warning with full automatic braking among others. Volvo has already received 100 bookings for S60 and is booked till May. The company plans to launch more global models in India depending upon the customer response.
12
Auto Monitor
1 - 15 April 2011
CORPORATE VIEWPOINTS
Visteon, 3M India display vehicle interior technologies Our Bureau Mumbai
V
isteon and 3M India recently unveiled range of car interior technologies for current and future customer requirements in growth markets like Europe, India, Brazil and Russia. A result of ‘Growth Market Project’ study, jointly conducted by both partners, the growth market car with advanced interior technologies focused on customers needs and expectations from current and future vehicles in India. Visteon conducted the survey to gauge the experience of the end customers while 3M India contributed to the study by providing the vehicle manufacturers perspective, according to officials from both companies. ‘This project and resulting vehicle showcase our capabilities to customers but it is not an attempt to project a unified or a
single face to customers. We are as keen as ever to increase our share of components going into a vehicle or a platform in order to increase customer engagement,’ said Vice President - Transportation Business, 3M India, S Sashidharan. The partnership is likely to serve as ideal platform in area of lighting, interiors and navigation technologies where Visteon and 3M have range of products complementing each other. 3M India is looking to enter and grow its presence in the two-wheeler business in India and is working on products and solutions for that segment. Shashidharan added that 3M India Industrial Transportation business, catering to the requirements of the automotive sector, reported revenues of around `480 crore last fi scal. He added that the company is looking to grow in areas of sound and light management, personalisation of the vehicles, energy management
S Sashidharan, Vice President - Transportation Business, 3M India, Robert Pallash, Senior Vice President, Global Customer Group, Visteon Corporation and Vish Viswanathan President and Managing Director – Visteon India
and attachments to the vehicles. The growth market car served as a platform for both partners to showcase how technologies can be integrated to enhance the driving experience, while meeting cost and packaging requirements of vehicle manufacturers in India. The car displayed modular design - with certain interior
components and systems that can be installed or excluded based on driver preferences, and scalable platforms - engineered to allow a wide range of features to be added cost-effectively. Visteon’s technologies demonstrated on the growth market car include a compact heating, ventilation and air conditioning (HVAC) unit and thinner heat
exchangers leading to a roomier interior, scalable instrument cluster, rear-facing fan on the back of the center console, halogen front-lighting source. 3M demonstrated technologies include interior trim fi lm, paint protection fi lm, paint replacement fi lm, vehicle graphics, light string and light management lens, sound management, In 2010, Visteon conducted extensive research with Indian consumers to defi ne craftsmanship as it relates to automotive interior components and overall interior harmony and design. Consumer clinics were conducted where drivers were observed interacting with their vehicles and given an opportunity to talk about their driving experiences and how they perceived quality. This research resulted in an outline for the Growth Market Project. The growth market car will be demonstrated to manufacturers in India, Japan, China, Brazil, and Europe.
Elofic mulls diversification Nabeel A Khan New Delhi
I
n a bid to leverage opportunities in the growing automotive segment, Elofic Industries is planning to diversify into construction and other industrial equipments soon. The company is also aggressively exploring options to enter into China either by putting up a plant or establishing a distribution channel, Managing Director, M B Sahni told Auto Monitor in a recent interaction. The company currently has strong presence in the US and Europe. Industrial equipment are something which we are looking at for a major boost in our business. Since a lot of money is being invested for development of infrastructure in India, the construction equipment is an area where we will be looking at very strongly in the future’ Sahni said. The company, a leading fi ltration manufacturer, has a core business in passenger vehicles which it will maintain. About 60 percent of the revenue comes from the aftermarket and 15 percent from OEMs. Filter is usually changed during oil change and general service since it is not a high-value product and this propels the volume in aftermarket than supplies to OEMs. Two years ago, Elofic has also introduced lubricants and engine oil and Sahni says that the response was more than expected. It claims to have sold 50-60 kilo liters per month within two year of its launch and hopes that in about three years time it will be able to reach at 200 to 250 kilo liters per month. It sells lubricants, engine oil, gear oils, grease, RTV silicon gasket and coolants under the new brand name Elofic 4x. The company claims to have a network of 14 marketing offices-cum-warehouse located in different parts of the country. It has also over 1,000 distribution network catering to over 30,000 retailers in India.
Elofic Industries Managing Director, M B Sahni and Joint Managing Director, K D Sahni at their Fridabad plant
Elofic is celebrating its 60th anniversary this year and is bullish to achieve a turnover of `500 crore in three years. However, the company has pegged `150 crore sales in FY11. It will accelerate its growth to hit the revenue target through value engineering apart from adding new segment and cutting on the wastage through automation. ‘We have invested in technology and our manufacturing has gone into backward integration which has helped tremendously. We made lot of changes on the engineering and product designing front also. We cannot compete with yesterday’s technology; we have to have tomorrow’s technology,’ Sahni asserted. The company has recently installed automatic machine to test the leakage of the fi ltration system. The machine has over a dozen testing points which is handled by only one operator hence reducing the requirement of manpower. The automatic checking also ensures error-free operations eventually enhancing efficiency.
The company is looking at a lot of new segments in both horizontal and vertical integration besides, exploring merger and acquisitions options. ‘As we are looking for more revenue we have to fi nd more segments. We have no investment constraints and we will be mostly looking for technology advancement and business network through new partnership,’ Sahni added. As of now it commands 15 to 20 percent market share in India in fi ltration business. Talking about the major hindrances faced by company he said spurious product and high incidence of taxes are the major cause of concern. A recent study by the Automotive Component Manufacturer Association of India (ACMA) has revealed that counterfeiting causes the exchequer a loss to the tune of `2,200 crore. The company doesn’t see any major challenge from Chinese products as it has already been competing with them in the markets like the US. The only worry is on the products that are coming through illegal channels.
14
Auto Monitor
1 - 15 April 2011
AUTOPINION
Driving an organization-wide cost reduction programme I
Nikhil Pingle, Manager – Consulting Services, PwC India
ndian auto industry has witnessed a rapid growth of 30% in the recent past on the back of a flurry of new launches across all segments. However the industry has come under significant pressure owing to an increase of 20 percent to 45 percent in prices of commodities such as steel, rubber, aluminium and copper. In the current competitive scenario, maintaining price points of products is of utmost importance in order to retain market share. While there have been two price increases in the past one year (Aug’10 and Jan’11), the cumulative increase is about 3-4%. The OEMs have been unable to pass on the price escalation to the customer and this has led to shrinking of their profit margins. Another round of price increase is under consideration. Cost reduction programmes have become a mainstay in the Indian auto industry for the past decade. A host of techniques, illustrated in Table A, are being applied for identifying and implementing cost reduction opportunities across design, supply chain & procurement, operations and administrative overheads. Several organizational aspects of the transformation play a key role in deciding the success or failure of the cost reduction journey. CEO and the CXOs, who drive the programmes across the organization and in their respective functions, need to leverage these aspects during the different phases of the cost reduction journey. These aspects are explained in further sections of this article.
the programme. During the initial phase, the size of opportunity in the different areas needs to be quantified and accordingly the targets for cost savings need to be set. It is also important to account for these savings in the company’s budgets. The programme leadership and structure are important decisions which often do not get due attention. The right leader and an aligned structure will work wonders for the programme. Very often, during the early stages of the transformation, the CEOs themselves lead these programmes. However for a mature organization, the responsibility of leading such programmes usually rests with one of the CXOs. The decision usually depends on the area having maximum size of opportunity. If maximum potential of savings is envisaged through innovation around product design, Chief of R&D / Product design usually leads the programme, however if potential benefits from procurement and supply chain are higher, the Chief of Supply chain usually leads the programme. Some organizations have dual leadership rested within the Chiefs of R&D and Supply Chain, however these tend to become democratic in nature and hence pace of change is slow. Another concept which has gained momentum is to drive these programmes through a Project or Programme function. In such a structure, the Project function holds the responsibility and accountability of the overall cost savings target and this function drives
ties and to mobilize resources for implementing cost savings. They are also made responsible for achievement of savings accrual targets. A large scale involvement of people is often created for generating a mass of cost savings ideas which are then prioritized and taken up by various teams. While there might be a strong urge to include all areas under the ambit of the programme, it is wiser to prioritize projects based on the potential benefits, perceived efforts, investment capacity for the programme and risk appetite of the organization. Action-packed middle game Having created a strong foundation, the teams then embark on identifying savings opportunities in their respective areas. At this juncture the leadership team needs to play a very active role in challenging cost assumptions and often push the teams to gather more information and gain an in-depth view of processes & costs. It is equally important to bring an outside-in view by tapping the knowledge of experts and experiences of other organizations. Like in any large transformation, it becomes imperative during progress reviews that some teams are struggling to demonstrate results over a period of time. In such situations, it becomes imperative to act quickly and resolve any bottlenecks or reinforce the team with experts. The leadership team should create an urgency to implement projects by emphasising on the time value of money. It is also important to setup
Design Innovation and New product development
Procurement and Supply chain
Manufacturing and Operations
Administrative overheads
Alternate materials
Make vs buy
Power consumption reduction
Rate negotiations
VA-VE
Alternate sourcing
Fuel consumption reduction
Consolidation
Low-cost platform design
Global sourcing
Alternate methods for manufacturing
Value analysis
Frugal engineering
Zero-based costing
VFD installations
Logistics cost reduction
Early supplier involvement in design
Localization
Automatic dispensing systems
Tierization of vendors
Minimizing idle running
Volume based negotiations
Recycling & reuse of waste
Inventory reduction (JIT)
Burner type changes
Reverse auctions & e-procurement
Well begun is half done At the outset, it is imperative to create a strong vision and need for the cost reduction programme. Cost benchmarks with competition and with other global peers need to be established and communicated across the organization to create a collective dissatisfaction and a pull for
the programme with the support of other functions. The advantage of such a structure is that an independent function gets a very wide view of product costs across the organization. The role of the various cost champions and team leaders is to ensure application of all possible tools for identifying opportuni-
a system of tight control points which are checked before certifying implemented savings. The role of the Finance function is important, but often ignored, in this certification process.
End game of sustenance The focus of this phase is on maintaining the momentum of
CEO and the CXOs, who drive the programmes across the organization and in their respective functions, need to leverage these aspects during the different phases of the cost reduction journey. The role of the various cost champions and team leaders is to ensure application of all possible tools for identifying opportunities and to mobilise resources for implementing cost savings. They are also made responsible for achievement of savings accrual targets. the programme and ensuring sustenance of all improvements. The teams need to adopt foolproofi ng measures at all stages, to eliminate all possibilities of leakages creeping back in once more. Regular gemba visits and audits by senior personnel need to be instituted. The accrual of savings needs to tracked and reported by Finance during the monthly reviews. Any deviations from plan should be highlighted and corrective measures should be taken by the teams. During the end stages of the programme, when achievement of targets becomes visible, the management team should shift their focus on designing the future structure which will continue progress of these initiatives on an ongoing basis. To summarize, the automobile industry is utilizing a variety of tools in their journey towards cost competitiveness. In addition, there is a need to focus on adopting the right combination of organizational aspects such as programme structure & leadership, transparency & benchmarking for setting targets, sense of urgency in implementation and focus on measures to sustain the benefits. Author – By Nikhil Pingle, Manager – Consulting Services, PwC India (nikhil.pingle@in.pwc.com)
1 - 15 April 2011
Auto Monitor
CORPORATE
17
Shell to re-launch bike lubricant portfolio Nabeel A. Khan New Delhi
S
hell Lubricants will be relaunching its Shell Advance lubricant portfolio for bikes soon and through this new portfolio the company is eyeing to capture ten percent of the total market globally by FY15. ‘We are rolling out new lubricant portfolio for bikes globally this year. We have already launched it in a few markets and in India we will launch it this month, Global Marketing Manager, Motorcycle Oil, Shell India, Tanmay Jaswal told Auto Monitor. He further added ‘We are looking at capturing around eight to 10 percent of the total market globally in the FY15. Current share is about six percent of the total market globally. And we hope India being the second largest bike
market, it is definitely going to give us good numbers.’ The new product range will be launched in the aftermarket and they will be sold at its existing network of dealers and distributors to reach as wide range of customers as possible. The idea behind launching the new portfolio of Shell Advanced is based on customers’ feedback. The company carried out a wide range of research based on three broad points which the customers look for in a motorcycle – reliability, control and enjoyment.
Tanmay Jaswal, Global Marketing Manager, Motorcycle Oil, Shell India
The new and restructured Shell Advanced portfolio will have an extensive range of products with
exclusive specification so that the customers can choose according to individual needs.
The entry level product which would be mainly targeted at 100cc bikes is called Advanced AX 3, going upward, is AX 5 and AX 7, while the best in class is called Ultra. ‘We have tested all the new products in our technology centre in UK, Germany, Singapore, Japan and China. Our top level product- Ultra is approved by APISM. Moving down our AX 7 adheres to APISL norms. And other products are APIML compliant,’ Jaswal added. AX5 will carry a specification of API SL JASSO MA and it will be a premium mineral product. While AX 7 is a semi synthetic product and it will carry a specification of JASSO MA 2 API SL and, ‘you can see the difference of the each product as you ride the motorcycle,’ he said. The new portfolio is developed according to the engine capacity of bikes. AX 3 is appropriate for smaller engines from 50-cc to 100-cc globally. Going further to the next level is 125-cc to 150-cc bikes which will be suitable for AX 5. While AX 7 will be suitable for power bikes having engine capacity of above 150-cc the Ultra, which
Shell-Ducati partnership extended Shell Lubricants extended it technical partnership with Ducati racing team till the end of the 2013 MotoGP season. ‘We have been partner with Ducati for past ten years globally. We have renewed our tie up for three more years’, Jawal said. Shell has also enjoyed a successf u l relat ionsh ip with Ducati Corse, first in World Superbikes and then accompanying the Bologna-based team when it moved to MotoGP in 2003. ‘In most of the markets we have strong relationship with Ducati and we want to further strengthen that,’ Jaswal added. is claimed to be the best technology, can be used in any bike for better efficiency. Talking about the potential markets globally, Jaswal said ‘For us China has given the biggest revenue share so far and we hope India is going to be another focus in our growth plan to fetch major part of the revenue. Currently our top five markets globally are –China, Indonesia, Malaysia, Philpines and Thailand.’ The company claims to be getting 10 to 15 percent of the total revenue from China with its presence in over 56 countries across the world. About the expansion plans he said ‘there will be some expansion plans here (in India). In terms of re-launching this across the world we have increased our investment by 75 percent this in 2011 compared to last year’s investment in the bike brands. Shell Lubricants makes and sells more than 3,000 different lubricants across a wide range of applications, marketed in approximately 120 countries. Shell’s portfolio of lubricant brands includes Shell Helix, Shell Advance, Shell Rimula , Pennzoil, Quaker State, Shell Rotella, Shell Tellus, Shell Spirax and Tongyi. Shell also owns a portfolio of car care products and Jiffy Lube services.
18
Auto Monitor
1 - 15 APRIL 2011
CORPORATE
M and M Auto to enter four wheeler segment Shambhavi Anand New Delhi
M
anesar based auto component maker M and M Auto Industries is planning to expand its customer portfolio from two wheelers to four wheelers and is looking forward to adding Maruti as its fi rst client in the four-wheeler segment. The company is also looking at hitting a turnover of `70 crore by the end of FY 2011, Chairman and Managing Director, M and M Auto Industries, Manoj Singhal said. M and M Auto is also setting up a new plant in Aurangabad, Maharashtra. ‘In the automotive sector, our present customers are mainly two-wheelers but we are expanding our customer base to the four-wheeler segment also. We
intend to begin this with Maruti,’ Singhal said. The current clients of the company include Hero Honda, Munjal Showa, Daewoo Auto Uzbekistan, CNH France, Clutch Auto, Kirloskar Electric, Gabriel India, Siemens and Escorts. In order to cater to the requirements of the new as well as existing customers, the company is planning to upgrade its existing capacity at Manesar. ‘As a part of technology up gradation of our Manesar plant we are adding new machines, bringing in new testing equipment and handling equipment, and roping in low cost automation techniques. This will help in increasing the production and also quality of the products,’ Singhal said. The company is in the process of setting up a new plant in Aurangabad in order to be able to meet the requirements of the
fast growing automotive industry. The construction work of the facility is almost complete. ‘We have not decided on the products that we will be manufacturing in the plant or the customers we intend to cater to but the construction of the site is almost in the final stages. We expect the plant to be functional by next year,’ Singhal said. The company also has a plant in Haridwar, which was commissioned about a year ago and primarily catering to the requirements of Hero Honda and Munjal Showa. The turnover of the company, which is essentially into manufacturing of precision metallic coil springs of various dimensions, was `48 crore in FY10 and expects to touch `70 crore in this fiscal. It aims to reach `100 crore next year. Apart from the automotive sec-
tor it also manufactures springs for the railways, aircrafts and defense sector. Its product line i ncludes compression springs, extension springs, torsion springs and seat belt spring among others for the automotive sector. About the bottlenecks that the industry has been facing, Singhal said, ‘We should have reached the turnover `100 crore two years ago. But because of problems like the rising cost and non-availability of raw Manoj Singhal, CMD M and M Auto materials, which the have been resolved now and entire industry was facing, we the company is also importhave not been able to do so. Our ing raw material from countries deal with Maruti would also have like Belgium, South Korea and begun by now had it not been for Austria. these bottlenecks.’ These issues
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iCAT to conduct workshop on hybrids, EV Our Bureau New Delhi
W
ith the view to develop alternate source of energy and reduce the dependence on petroleum products for a greener future, the International Centre for Automotive Technology (iCAT), set under the National Automotive Testing and R&D Infrastructure Project (NATRiP) is organising a two-day workshop on Hybrid & Electric Vehicles: Opportunities, Challenges and Technology. To be held in India Habitat Centre, New Delhi from 4 April, the workshop will discuss aspects related to hybrid and electric vehicles technology. Some of the key speakers will be from institutes like Argonne National Laboratory, Department of Energy, USA, Ohio State University, AVL GRAZ, FEV among others. iCAT intends to bridge the gap between industry and technology availability and establish dialogue between Indian companies and scientists of leading institutes. ‘Due to the rising prices and depleting reserves of petroleum every body wants to look at an alternative source of energ y and hybrids and electric technology offer big potential. Realising this, we as a research and development and testing institute, want to help in creating an infrastructure for these technologies. Our workshop can help the industry in finding near-term and long-term solutions for this problem,’ Director iCAT, Dinesh Tyagi said. Senior General Manager, iC AT, Pa mela Tik ku sa id, ‘Knowing that hybrid and electric vehicle technology is the need of the hour, we took a delegation to different countries to study how iCAT can support the industry in development of these vehicles. We found that there is a big gap between the understanding of what we have in India and what they have, both by way of technological challenges, availability of technology and readiness to embark on such a technology.’
20
Auto Monitor
1 - 15 April 2011
ANALYSIS Two-Wheelers
Commercial Vehicles
Passenger Vehicles Passenger Vehicles segment grew at 29.85 percent during April-February 2011 over same period last year. Passenger Cars grew by 30.34 percent, Utility Vehicles grew by 19.69 percent and Multi-Purpose Vehicles grew by 43.28 percent in this period. February 2011 figures for domestic sales of Passenger Cars show a growth of only 22.63 percent over the same month last year. However, in absolute numbers, this segment recorded highest ever sales. Total passenger vehicle sales figures for February 2011 compared to February 2010 shows growth stands at 20.88 percent.
The overall Commercial Vehicles segment registered growth of 28.65 percent during April-February 2011 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered growth of 34.18 percent, Light Commercial Vehicles grew at 24.08 percent. In contrast to the last February sales figures, February 2011 registered a growth of only 10 percent. Three-wheelers sales recorded a growth rate of 19.96 percent in April-February 2011. While passenger carriers grew by 22.39 percent during April-February 2011, goods carriers registered growth of 10.31 percent.
Passenger Cars OEMs
2009-10
2010-11
BMW
2,902
5,514
Fiat
22,645
19,247
Ford
25,261
85,241
GM
61,172
79,403
HM
7,975
6,357
HSCI
55,467
55,431
HMIL
283,466
327,203
4,981
8,991
MSIL
697,555
871,059
Merc
3,192
5,269
MR
LCVs (PC+GC)
90. 01%
OEMs ALL
584
9,925
14,561
231
300
-0. 06%
M&M
75,342
92,768
15. 43%
MNAL
-
9,573
Piaggio
10,167
8,444
Swaraj
3,112
3,783
150,554
179,755
4,929
6,630
Force
29. 80%
HM
-20. 29%
80. 51% 24. 87% 65. 07%
186
10,479
Skoda
15,678
18,959
20. 93%
Tata
177,534
233,361
31. 45%
TKM
9,020
14,948
65. 72%
Audi
1,808
3,528
95. 13%
VW
3,350
43,513
1,372,192
1,788,503
Tata
5533. 87%
BMW Force
2009-10 434 5,199
VECV - Eicher Total
OEMs
AMW
3,229
5,978
JCBL
158
14
Daimler*
-
166
MNAL
-
625
7,479
45.24%
Merc Benz
208
83
4,902
6,661
2010-11
0.25%
2,184
2,811
34.80%
GM
14,620
18,448
28.86%
Tata
HM
1,376
2,350
HSCI
408
456
HMIL
14
346
ICML
941
564
M&M
136,380
153,864
MSIL
3,255
5,046
Merc
128
570
Nissan
144
450
Tata
31,478
39,264
TKM
47,912
59,414
244,473
292,601
2009-10 0
204
M&M
0
310
Maruti
90,450
146,210
Tata
44,565
46,725
135,015
193,449
Total
134,290
Scooter/Scooterettee
21. 56% 19. 40% 34. 51% 24. 08%
122. 92%
26,642
55.91%
VECV - Volvo
921
932
Volvo Buses
545
488
Total
194,716
282,281
-37. 89%
2009-10
2010-11
BAL
3,698
27
HHML
184,890
307,259
HMSI
662,329
813,250
-99. 27% 66. 18% 22. 79% 154. 93%
M&M 2W
57,255
145,962
SMIL
123,567
209,038
TVS
272,020
407,128
49. 67%
Total
1,303,759
1,882,664
44. 40%
69. 17%
85. 13% -91. 14% Motorcycles/StepThrough
0. 00%
OEMs
0. 00%
BAL
1,586,984
2,194,522
HHML
3,912,301
4,457,670
HMSI
392,856
600,890
IYM
205,441
251,762
-
5,181
RE
45,729
48,523
SMIL
43,367
45,031
TVS
446,075
574,570
35. 88% 25. 69%
18,208
1592. 31%
OEMs
2009-10
2010-11
38. 28% 13. 94% 52. 95%
168,789
VECV - Eicher
46. 32% 1. 19% -10. 46% 44. 97%
M&M 2W
Total 6,632,753
12.87%
8,178,149
22. 55% 6. 11% 3. 84% 28. 81% 23. 30%
64.65% 521.43%
3 Wheelers (PC+GC)
Mopeds/Electric
OEMs
2009-10
2010-11
Atul
10,786
17,161
Bajaj
161,753
187,830
OEMs
2009-10
2010-11
TVS
462,197
572,498
2,482
NA
464,679
572,498
236.59% 0.00% 26.97% 25.94%
2010-11
Force
-16. 95%
-60. 10%
66.61%
MPV OEMs
0. 00%
2010-11 71,903
1,001
23. 13%
30. 34%
Ford
Total
2009-10 32,255
-
29. 87%
316,398
ALL
538
46. 71%
1198. 90%
Swaraj
Skoda
254,995
-20. 54%
M&HCVs (PC+GC)
UV OEMs
2010-11
735
237. 44%
Nissan
Total
2009-10
-15. 01%
Two-wheelers witnessed a growth of 26.55 percent during April-February 2011 registering 10,694,072 units against 8,450,797 units during the same period last year. Mopeds, Motorcycles and Scooters grew by 23.79 percent, 23.30 percent and 44.40 percent respectively. Motorcycle sales grew 30.72 percent to 6,42,419 units in February. Market leader Hero Honda’s sales were up by 13.91 per cent, while Bajaj Auto’s sales zoomed 94.23 percent in the month. TVS Motor Company and Honda Motorcycle & Scooter India (HMSI) posted a growth of 34.70 percent and 23.87 percent respectively. Scooter sales soared 44.72 percent with the sales of market leader HMSI growing by 19.96 percent TVS Motor soaring by 37.89 percent in the month. Hero Honda reported its best sales for February at 472,055 units, registering a jump of 23.54 percent over the same month last year. The company had sold 382,096 units in the corresponding month last year. Bajaj Auto witnessed 22.18 percent jump in its February sales at 286,657 units against the same month last year. TVS Motor Company has reported total two-wheeler sales of 23 percent growth to 173,200 units in February 2011 as against 140,544 units in the same month previous year. HMSI reported 19.27 percent growth in sales at 145,819 units in February 2011. The company’s total sales stood at 122,261 units in the corresponding month of the previous year.
61.65%
4.85%
43.28%
Force
1,547
142
M&M
40,066
56,373
Piaggio
164,212
184,947
Scooters
10,337
12,575
TVS
11,340
20,847
Total
400,041
479,875
59. 10% -90. 82%
16. 12%
Electrotherm*
40. 70% 12. 63% 21. 65% 83. 84 19. 96%
Total
23. 73%
0. 00%
23. 13%
22
Auto Monitor
1 - 15 APRIL 2011
CORPORATE
Domestic players dominate counterfeit market Shobha Mathur Chennai
C
ounterfeiting or the business of producing fake auto components has evolved into a burgeoning industry in the Indian aftermarket today, keeping pace with the growth in the auto component sector. Interestingly, it is believed that local players hold the monopoly with about 60 percent sway with the balance 40 percent counterfeits winding their way through imports, mainly from China, Taiwan and Korea. To stem the rot, Automotive Component Ma nufacturers Association (ACMA) officials are believed to be meeting government officials in the Ministry of Consumer Affairs, Industry and Surface Transport to push for counterfeit components to be declared a cognizable and nonbailable offence. The apex body is keen to get its menu cards incorporated in the changed legislation to lend teeth to the Motor Vehicles Act on the lines of those
prescribed for curtailing adulteration in drugs and cosmetics. Though various legal remedies are currently available under the Contract Act 1872, Sale of Goods Act, Essential Commodities Act 1955, Consumer Protection Act 1986, Standards of Weights & Measures Act 1976, Patents Act, Copyrights Act, Trade Marks Act 1999 and the Designs Act, the legislation is inadequate and culprits can easily escape the dragnet of law as the crime is bailable. ‘The limitation of all the IP laws, is that they do not provide for a self starting mechanism where the State machinery monitors, surveys and takes action against traffickers in counterfeit auto components,’ Executive Committee Member and the Chairman of Consumer Affairs Committee of ACMA, Soumitra Bhattacharya told Auto Monitor. ‘Several departments have to work in sync to build the necessary anti-counterfeiting laws,’ he added. Head Automotive Practice, KPMG India Yezdi Nagporewalla
Printed material of Bosch along with DIE
agreed that stronger penal action was called for to curtail counterfeits as they resulted not only in revenue loss but also loss of reputation for the component maker and OEM. In their own way, automotive component manufacturers and ACMA have been conducting common and individual raids to protect company brands. As many as 311 raids were conducted during 2010 with 500 raids targeted pan India during 2011. So far, ACMA has conducted 439 raids across the country with thousands of fake and spurious components seized during the last one year. Bhattacharya said that while rural and semi-rural customers were taking uninformed decisions on purchase of counterfeits believing them to be safe products, mostly denizens from urban areas were aware of their consequences. Though no clear statistic meanwhile, is available regarding the value of counterfeit products emanating from China, it is believed to contribute a large chunk. This is based on the premise that component imports from China to India have grown at 30 percent CAGR since 2006, with the figure crossing $1 billion in 2008. Auto component imports from China contribute more than 20 percent of the total imports in India at $ 938 million or `4,200 crore. According to a recent White Paper on legislative improvements to combat counterfeit auto components by ACMA and Ernst and Young, a number of Chinese parts suppliers have online presence on sourcing websites and are believed to be using product
codes of OEM suppliers to advertise their products. Hence, it is surmised that a large number of imported Chinese components headed for the aftermarket are counterfeits. These could be packaged as original parts from China, or locally packed.
Soumitra Bhattacharya, Executive Committee Member and the Chairman of Consumer Affairs Committee of ACMA
In fact, more than 80 percent of goods seized at US borders are produced in China. An estimated 30 percent of products sold in mainland China are counterfeit, according to a report by the Federal Trade Commission (FTC). According to FTC counterfeiting costs the global automotive parts industry $12 billion per annum in lost sales of which $3 billion is in the US. Frost & Sullivan report of 2006 estimated that the losses would pare up to $ 44.7 billion globally by 2011. Spearheading the spurious product list both globally and in India are engine and exhaust parts like oil and air fi lters, electrical and electronics like bumpers and wind shields, suspension and braking parts like steering
arms and brake linings and body and structural components like headlamps and wipers. Products such as fi lters, spark plugs, brake pads, bearings, piston and piston rings tend to be more prone to counterfeiting than others. ‘The relatively low margin on genuine products along with a highly competitive environment at the dealer level is becoming an important factor driving the sales of counterfeit parts,’ said Bhattacharya. Moreover, lack of availability of genuine parts for older variants of vehicles, and sometimes even for new models, is serving as a driver for counterfeit sales. Owners of old vehicles also push for servicing at a lower cost. Further, counterfeits are lower priced by 30 to 50 percent compared to original parts and result in margins ranging between 35 and 75 percent for small shopkeepers peddling their ware. ‘Counterfeiters take advantage of the lacunae in the system to take their products to market. Lack of strict laws and the absence of stringent punishments for the offenders have resulted in the counterfeit business gaining size,’ elaborated Bhattacharya. The White Paper has highlighted that parts not requiring h ig h-end ma nu fac t u r i ng technology and substantial investments are manufactured on the outskirts of metro cities like New Delhi and Mumbai while others are imported from low-cost countries such as China, Thailand and Indonesia. These products enter the supply chain after they are packaged, either in fake or original packaging sourced from mechanics or service stations and then sold to a master distributor. An interesting fact thrown up by the White Paper is that the OE segment that constitutes 75 percent of the auto component consumption is relatively safe from counterfeits, as the products are directly supplied to vehicle manufacturers. However, the aftermarket that brings up the rear is severely impacted by fakes. The size of the aftermarket for auto components in India was pegged at `24,700 crore in 2010, rising from `16,000 crore in 2004. Counterfeits account for 35 percent of the aftermarket at `8,700 crore. Counterfeits are estimated to accrue in a loss of revenue of `2,200 crore per annum to the government. Employment loss is pegged at over 1.15 million jobs while 20 percent of total road accidents in India can be either directly or indirectly attributed to the use of counterfeit automotive parts. End-users are paying for an additional 109 million liters of petrol and eight million liters of diesel per annum that can be attributed to use of counterfeit parts, according to the White Paper.
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CORPORATE
Altair Engineering develops upgraded software solutions for OEMs Shobha Mathur Chennai
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n a bid to enhance its capabilities in line with changing requirements of the Indian automotive industry, Altair Engineering is beta testing a new version 11.0 of its software solution, Hyperworks both in India and in the US. Beta test is the second phase of software testing in which a sampling of the intended audience tries the product. The software would be commercially rolled out in a couple of months. Earlier the 10.0 version of Hyperworks was in use. The new software platform has been developed for OEMs in the passenger car and truck
segment to facilitate a better understanding of behaviour of new materials in terms of safety of the vehicle. According to Managing Director-South Asia at Altair Engineering, Pavan Kumar, the licensing of the software would be based on units leveraged in the application process with prices pegged at $ 1,500 per unit. HyperWorks is a computer-aided engineering (CAE) simulation software platform that allows businesses to create superior products efficiently and cost effectively. It facilitates best-in-class modeling, analysis, visualisation and data management solutions for linear, nonlinear, structural optimisation, fluid-structure
NVH frame and Engine plot cover
interaction, and multi-body dynamics applications. It works on the flexible software licensing model that replaces expensive traditional licensing plans with a pay-per-use system. Its simulation-driven design technologies enable achievement
of performance, timing, and cost targets through rapid, lowcost, virtual exploration that accelerates informed decision making throughout the product life cycle. Subsets within the HyperWorks suite encompass HyperMesh a
high-performance fi nite element pre-processor with direct interfaces to commercial CAD and CAE systems. It provides a consistent analysis platform for the entire enterprise. HyperView is a post-processing and visualisation environment for CAE and test data. Radioss is a fast and accurate fi nite-element solver for linear static and dynamics problems. Many major OEMs and tier-1 suppliers are using Radioss to simulate scenarios like airbag deployment, barrier impact, sled test, dummy-structure interface and statutory vehicle regulation. The simulations have been found to have good correlation with actual test results. OptiStruct is a CAE technology for conceptual design synthesis and structural optimization. By predicting optimal shapes of structures with minimum input early in the process, OptiStruct facilitates analysis that results in more efficient designs in lower time. MotionView is an open multi-body systems modelling environment while MotionSolve is a next-generation, multibody systems analysis software. HyperMath a general purpose numerical computing environment allows customers to easily develop and perform custom mathematical operations on various types of data, including CAE pre- and post-processing. HyperStudy is a solver-neutral design study, optimization and stochastic study software that allows the exploration and optimization of design performance and robustness. The subsets in Hyperworks would also help understand transmission of noise through liquid medium. The simulation process embodies multibody tyre models in software so that engineers using it would be able to specify how the vehicle would behave under the inf luence of a certain tyre model, said Kumar. Altair is also in the process of further expanding its manpower strength by another 10 to 15 employees at its R&D centers at Chennai, Bangalore and Hyderabad. Early development is in process at its Bangalore R&D centre for OEMs in passenger car and commercial vehicle segment using the AcuSolve CFD technology from its recently acquired Acusim Software Inc. At present, Altair has 30 employees at these centres. A next generation technology for automotive CFD simulation, AcuSolve enables designers to quickly obtain quality solutions without iterating on solution procedures or worrying about mesh quality or topology. Today, battery and hybrid technology is leading the way to drastically reduce the environmental waste of classic internal combustion engines. Similarly, AcuSolveâ&#x20AC;&#x2122;s GLS fi nite element CFD solver reduces CFD waste by easily using unstructured test meshes. US-based Altair empowers client innovation and decisionmaking through technology that optimises the analysis, management and visualization of information.
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CORPORATE
JCBL to expand product portfolio Shambhavi Anand New Delhi
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wing to the rising demand of specialty vehicle in the country, Punjab based bus body builder JCBL is planning to add new products to its portfolio, especially in the specialty vehicle category. The company is also planning to expand its existing facility in Chennai plant as a part of strategy to strengthen its footprint in the southern part of the country. It has already set up a new plant in Vijaywada, Andhra Pradesh. ‘We have mapped the bus industry and feel that the specialty vehicle segment promises a lot of growth. We plan to add more products to our portfolio in this segment like cargo, bulkers, petroleum tankers, range of ambulances and many more. We want to specialise in a lot of areas,’ Managing Director, JCBL, Rishi Aggarwal told Auto Monitor in an exclusive interview. The company also plans to produce truck bodies in the next few years. Apart from bus bodies, JCBL manufactures 150 varieties of
vehicles including school buses, ambulance, special purpose vehicles like election campaign vans, ATM vans, OB vans and bullet proof vehicles. The company recently did a project for United Nations Organisation (UNO) for which it manufactured 32 mobile blood banks, each vehicle costing `1.5 crore. Talking further about their expansion plans Aggarwal said, ‘we are planning to tap into the growth capital market that will bring in a very big impetus to the group. We are looking at investing `100 crore to `150 crore in the next two years.’ As a part of its expansion plan JCBL has set up a new plant in Vijaywada, which was inaugurated on February 25 this year. The plant was set up as a joint venture between JCBL and Mithra Group, which is actively involved in manufacturing of automobile parts and accessories. The joint venture is called Mithra JCBL and has a capacity to produce 2,000 buses in a year. JCBL is planning to double the capacity of its Chennai plant. From its current capac-
ity of 2,000 tippers it will ramp it up to 4,000 by next year. The company plans to invest about `70 crore in the next two years in the Chennai plant. The company also has two more plants in Ambala, where produces 650 buses in a month. It also has a strong service base comprising leading OEMs like Swaraj Mazda, Eicher, Tata Motors, schools and institutions in the country. The share of OEMs is 40 percent and the rest is in the open market.
Bus Code Talking about the Bus Code, which will be implemented from April 1, 2011, Rishi Aggarwal said that implementation of the code would change the market forever. It will put safety regulations in place thereby ensuring quality. JCBL has been growing at about 40 percent every year and it hopes to end the FY 11 with a turnover of `250 crore. The company also manufactures bus components like sheet metal, seats, fi bre glass, lock hinges among others. It has strategic partnership with several international players for the same. Aggarwal said that there is some dialogue going on for strategic partnership with companies in Europe and China but since they are in initial stage he did not divulge further details. The company has strong research and development facility with about 80 designers. It has prototyping and testing facilities at its Ambala plant. ‘Currently India produces around 65,000 to 70,000 buses every year and almost 50 percent of them are manufactured by the unorganised sector. The companies operating in the unorganised sector hardly heed
Vijayawada plant
Rishi Aggarwal, MD, JCBL
the safety standards, which result in low quality products. Some manufacturers sell their products at a rate that is not even my material cost. The quality is obviously compromised. The Bus Code will make rollover tests mandatory. These test are extensive and expensive and can be taken only by the responsible manufacturers. The unorganised sector will either have to upgrade itself or say good-bye to the market. The regulation will bring in a level playing,’ he added.
According to the bus code every bus manufacturing unit will have to obtain accreditation certificate to demonstrate their capabilities to build buses as per the safety standards set by ARAI. There will be standard parameters for bus designing and construction material used in the making of bus and the manufacturer should have design and development facility, fabricat ion components, seat assemblies, inspection and testing facilities to qualify for accreditation.
Inphynyt Battery deems high rid on opportunity Nabeel A Khan New Delhi
E
st imat ing sig nif ica nt space in the automotive battery market, Inphynyt Accumulators India, is expecting to slash a `10 crore turnover by FY12. The Delhi-based company has forayed into the Indian market in January this year with a comprehensive range of automotive batteries. Its plant at Bhiwadi in Rajasthan with a current production of 10,000 units yearly arly will be ramped up to full capacity acity of 30,000 units by FY12. ‘We see a huge opporortunity and the targett is that by FY12 we should be having 100 Inphynyt Power Hubs across India,’ Director,, Nina Benjamin Singh, told d Auto Monitor. The company is not following the traditional distributors ibutors and dealer network rather ather it will be extending franchise anchise which will be called Inphynyt nphynyt Power Hub. It currently y has six Power Hubs in India.
The company claims that w ith introduction of new technology it will be able to snap the maximum share. It asserts that with the help of Desulphator Technology and Stop Shock Science, it will be able to increase the durability of the batteries by over 30 percent. Desu lphator tech nolog y helps in increasing the reserve capacity of a battery, while Stop Shock Science will help in controlling the vibration. That will eventually control the shed-
ding and result into minimising the impact on the plates of a battery. It also declares that product portfolio which is based on the application and usage will be another catch point. The company offers batteries customised for specific applications like trucks, buses, agriculture equipment and passenger vehicles. According to the company the batteries it makes have about five percent more lead content that the conventh t iona l batter ies available in the av ma It is m rket. investing a total of `20 crore over the next year of which `2 crore have already been h invested in current inve set up. It is also investing `2 crore on inves getting the batter y getti technology and testtechn ing equipment from e Cadex, Cadex a US based testing equ ipment manufacturer. manuf
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Automechanika Istanbul zooming to a record participation Our Bureau
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stanbul is gearing up for the Automechanika, International Trade Fair for Automotive Manufacturing, Distribution and Repair, scheduled to be held between April 7 and 10. Over 1,000 exhibitors from more than 100 countries are expected to participate, while over 35,000 visitors from 40 countries are deemed to be witnessing the three-day event. In 2009 about 820 exhibitors from 35 countries participated in the show. Automechanika Istanbul is expected to break previous records as three additional halls are sold out to accommodate the unprecedented participation.
The event attracts automotive industry professionals at the crossroads of Europe, Asia and the Middle East at the intersection of two continents. The event gives opportunity to showcase
products of five categories â&#x20AC;&#x201C; Repair & Maintenance, Parts & Systems, Accessories & Tunning, Service & Car Wash and IT & Management. This is the sixth time that
Messe Frankfurt Istanbul and Hannover Messe International will organise this exciting biennial trade event which will be held in collaboration with Automechanika Istanbul and
Petroleum Istanbul. P rojec t Ma nager of Automechanika Tayfun Yardim was quoted in a media release as saying â&#x20AC;&#x2DC;Both events capitalise on the many years of growth and economic momentum within their respective sectors and the potential synergies will not be overlooked when marketing to exhibitors and attendees.â&#x20AC;&#x2122; Despite the challenges faced by the new vehicle industry, manufacturing capacity for both imported and domestic vehicles has grown and business continues to prosper within the region that includes eastern and southern Europe, the Middle East and the CIS countries. According to Istanbul fair officials, the high export volume of parts and components is sustaining the growth of manufacturing, service and sales for this sector. The Turkish automotive industry has experienced dramatic growth from its inception in the early seventies. Although initially, the majority of market development was based on imports and local system integra-
tion, since its full membership to the European Customs Union in 1994 Turkey has become a major production platform for global automotive manufacturers. The annual sale of approximately 500,000 vehicles in Turkey combined with millions of sales in the nearby Balkans and the Middle East have created sustainable conditions for the replacement parts and services sector. The production capacity of manufacturers of Turkish automotive components now totals over $ 10 billion annually. Nevertheless, the consumption rate for locally manufactured products over the past five years represents only 40 percent of that figure. The gap provides significant demand for imports and serves as a cornerstone of the grow th of Automechanika Istanbul. The potential in the Turkish market is evident by the manufacturing units of 15 major companies including, Renault, Fiat, Ford, Toyota, Hyundai, Honda, Mercedes, Mitsubishi, Isuzu, Peugeot, Iveco, Otokar, Man, BMC and Askam.
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1 - 15 April 2011
TECHNOLOGY
Auto Monitor
33
The Hybrid: Car of the Future Authored article by John P. Absmeier, Director of Business Development, Asia-Pacific and Manager of Advanced Engineering for Hybrid and Electric Vehicles and Power Electronics, Delphi Corporation
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oday’s hybrid cars are marketed or perceived by a singular benefit of increased fuel economy. It is true that hybrid cars save on gasoline however; another key benefit of hybrid cars is the significant reduction in emissions. The auto industry took a major leap forward in the 1990s with the introduction of ‘hybrid’ technology — typically operating on fuel and electricity in varied technical combines. Hybrid vehicles (HEV) range from limited functionality micro hybrid type systems to full hybrid vehicles. While the sole function of the micro hybrid system is to shut off the engine when it is idling (as at a stop-light), full and plug-in hybrid vehicles can run using electric drive mode by exclusively using electric energy stored in the battery captured through regenerative braking, dispensing with all petroleum and other fuels during certain operating modes, dependent on the battery size. The major focus of HEV development has been to electrify the power-train of the automobile. Petroleum-fuelled engines using magneto spark have given way to digital controls, silicon-based power electronics, and further electrification of the conventional drive-train. The future may well see battery electric and fuel cell vehicles dominating the markets. HEV drive-trains deliver significant fuel savings, reduced emissions during hybrid modes and emit no pollutants when running purely on electricity.
Growing awareness of the environmental impact of fossil fuels and the progress in the commercial viability of green technologies for automobiles has changed the face of the industry in most developed countries. The faith in the evident benefits of the hybrid car is increasing as urban centres grow more crowded and city roads more congested, the air more polluted and fuel bills escalate. Demand for hybrid cars is high in markets where awareness of environmental concerns is high. In North America — the USA and Canada — the demand for hybrid cars has grown as much because of increased sensitivity to environmental impact as rising fuel costs. Apart from the impact of the most strict carbon emissions regulations worldwide, the European market for hybrids has grown largely on the back of government support through tax benefits on purchase of hybrid cars as well as subsidies to manufacturers. The USA is currently the largest market for hybrid cars, with close to one million hybrid cars on the roads. In the USA and Canada, hybrid cars account for almost three per cent of the total number of registered passenger cars. In comparison, less than 0.5 percent of all cars in Europe are hybrid vehicles. Market researchers expect that by 2012, 5.3 percent of all cars in North America will be hybrid models. In Europe, however, it is expected that while
Western Europe will see hybrids make up around 5 percent of all registered cars, these will constitute just 0.3 percent of all cars in Central Europe.
John P. Absmeier
Outside of Japan, the market for hybrid cars in Asia is still at a nascent stage. India’s largest auto manufacturer, Maruti Udyog Ltd, recently announced that it will launch a hybrid model in about five years. This may well change consumer perceptions. Chinese car-maker BYD Auto recently launched two new plug-in hybrid models. Delphi is involved with the hybrid and electric vehicle business across China, India, Korea, Japan and Australia. Reportedly, as many as 30 hybrid car models are currently being developed worldwide, to add to the (approximately) 20 models already being marketed commercially. With congested road conditions, requiring frequent stops, the drive-cycle on Indian roads creates the ideal market for hybrids. With vehicles spending a large portion of their running
time either idling (between 35 per cent and 40 per cent) or moving at very slow speed, this is the ideal drive cycle for a hybrid or electric vehicle. The high fuel
especially in torque security and energy storage technology. But the very simplicity of integrating the Stop-Start system into existing vehicles has made it one of
CODA is an all-electric sedan and Delphi supplies power electronics, high-voltage electrical/electronic architecture components and multi-service antenna.
consumption experienced during many stops and starts can be significantly reduced by a hybrid drive-train, also yielding significant reductions in emissions and noise pollution levels. For this reason, as also for cost and complexity considerations, the Stop-Start Micro Hybrid technology will be the fi rst of the hybrid technologies to be launched in the Indian market. Relatively simple and available at low cost, Indian OEMs are very interested in this technology. Delphi, a leader in this micro hybrid technology area, offers a 12V Belt-Alternator-Starter StopStart system scheduled to go into production in early 2010. The simplicity of the StopStart Micro Hybrid technology makes it easy to integrate with the vehicle’s systems. The biggest technology challenge for OEMs is systems integration and safety,
the most widely adopted micro hybrid technology in the auto industry worldwide as countries seek to reduce emissions and conserve fuel consumption. The European Commission’s CO2 emission standard stimulated adoption as also did England’s offer of tax benefits to lower CO2 emitting vehicle models. A survey in the UK found 75 per cent of motorists eager to install the stopstart micro hybrid system. Most countries in Asia follow European standards for emissions and many have already announced incentives (including tax breaks and partial vehicle cost reimbursements) on hybrid vehicles. India may well learn from these in its efforts to reduce pollution as well as its fuel costs. In this, full hybrid technologies could be the future, but adoption of micro hybrid technologies is an effective first step towards the future.
The second edition of Automotive Dealership Excellence Awards has raised the benchmark for the Indian automotive retail. Held at The Leela Kempinski, Mumbai, on February 26, 2011, the event witnessed participation from leading manufacturers and dealers. To catch the glimpses of the awards log on to www.adea.in ADEA Winners
For further details, write to prachi.mutha@infomedia18.in or call +91-22-3003 4650
1 - 15 April 2011
Auto Monitor
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Maruti rolls out ten millionth car Our Bureau New Delhi
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aruti Suzuki rolled out its ten millionth car on March 15, 2011 and became the only Indian company to join the club of select automobile manufacturers who have crossed this milestone, like Toyota, Volkswagen, Honda, General Motors. The company, which started operations in India in 1983 (then Maruti Udyog Limited) as a joint venture between the Government of India and Suzuki Motor Corporation, Japan, rolled out a metallic breeze blue coloured WagonR VXi as its historic ten millionth car. On the occasion Managing Director and CEO, Maruti Suzuki, Shinzo Nakanishi said that he was
Kawasaki Ninja 250R sold 1000 units in its first year Kawasaki Ninja 250R sold 1000 units in the fi rst year of its launch. The bike, which is powered by an eight-valve DOHC liquid cooled 250 cc fuel injection engine developing 30 PS at 10,500 rpm is sold through 32 Bajaj Probiking showrooms across 30 cities in India. To celebrate one year of Ninja on the Indian road, the company showcased Ninja on the Irungattukottai racetrack in Chennai recently. Speaking at the occasion, President (New Projects), Bajaj Auto, Eric Vas said, ‘Ninja 250R has been successful in carving out a distinct biking culture in India that values multicylinder power, style, handling and refi nement. Bajaj Probiking shall continue to set the standard in India for customer satisfaction, and will introduce select new bikes to serve discerning customers.’
Tata Motors increases prices Tata Motors recent ly announced that it will increase the prices of its Passenger Vehicles effective April 1, 2011. In Passenger Cars, depending upon the model, Indica prices will go up by `7000 to `9000, Vista and Indigo CS by `8000 to `11000 and Manza by `10000 to `15000. In Utility Vehicles, depending upon the model, Sumo prices will go up by `13000 to `15000, Grande by `16000 to `19000, Safari by `18000 to `29000, Aria by `30000 to `36000 and Venture by `9000 to `12000. Despite continuous cost control initiatives, the company is being forced to take these increases on account of steep rise in input costs.
Vacuum suction pad for work pieces with small radii Schmalz India claims to have developed a new edge gripper suction pad- SAOK, for picking up work pieces with small radii and also for the handling of structured parts with round edges. The new gripper can be used for a number of applications including work pieces designed with little even surfaces for suction pick-up and for highest holding forces for safe processing, even with oiled surfaces. The new gripper is stated to be capable of being used for highest dynamic handling for shortening cycle times.
thankful to the founder members of Maruti for laying a solid foundation of values and practices. He also thanked the employees and business associates for their enthusiasm and commitment. The last six years have been crucial for Maruti Suzuki attaining this landmark as the momentum of reaching the milestone picked up in this duration during which it manufactured around five million units. Several focused initiatives like capacity expansion, higher productivity levels and enhanced R&D capability demonstrated through product refreshments enabled the oldest carmaker to reach this milestone. Starting with the handing over to the fi rst Maruti 800 to the fi rst customer in December 1983, the company produced the fi rst mil-
Models and Year of Launch
lionth car in 1994. The cumulative production reached two million in 1997. The next big landmark of five million was reached in April 2005, almost 22 years after the fi rst car was rolled out. Today, MSI has 16 passenger vehicle models in India and is the largest carmaker with over 45 percent share in this segment. The present product portfolio
1983: 800
2003: Vitara
1984: Omni
2005: Swift
1985: Gypsy
2007: SX4
1993: Zen
2008: A Star
1994: Esteem
2009: Ritz
1999: Wagon R, Baleno
2010: Eeco
2000: Alto
2011: Kizashi
of the company includes Alto, Estilo, WagonR, Ritz, A star and Swift, MPV Omni and Eeco, sedans Swift DZire and SX4 and SUV Gypsy. It also imports Grand Vitara and premium luxury sport sedan Suzuki Kizashi, from Suzuki Motor Corporation, Japan. It has over 900 sales outlets and 2900 service workshops. MSI
has two manufacturing facilities and two more are in the process of being set up in Manesar. Currently, Maruti produces over 12 lakh cars units per annum, which will go by 500,000 units once production commences at the new plants. Maruti is also setting up a R&D center which will be Suzuki’s largest research center outside Japan.
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VIEW POINT
Operational Leasing of Company Vehicles – A Winning Cost Reduction Strategy
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ost downturn and the revival of world economies, the Indian companies and multinationals operating out of India, who had gone relatively conservative are again looking up for revamping their strategies to meet the growing demand for goods and services. Aside of that many companies have revamped their hiring plans and are once again hiring aggressively. While India is a fairly good market for jobs given the abundance of highly educated and talented personnel especially at the lower levels, one of the major challenges that companies are facing is the lack of trained and experienced manpower at the middle and senior management levels. While hiring remains one of the major issues for companies at these levels, retention of talent is becoming all the more critical for companies. So companies are adopting various innovative ways and means to retain talent critical to their business. Amongst the multitude of ways companies are employing to retain talent, one of the major attractions are the perks that companies offer their executives as part of their retention policy. One of the most commonly used perks that is used to retain talent is providing employees with company cars. While traditionally companies used to buy cars to be used by their employees especially at the senior management levels, today company cars and vehicles have started playing an integral role in employee effectiveness
and efficiency. Many companies are now offering company cars and other vehicles as tool of trade vehicles. Today the automobile industry is one of the fastest growing industries in the country with automobile or car sales reaching historical highs every subsequent quarters. Amongst all cars that are sold every month a large portion of the cars is being bought by corporate houses for their employees either as perks to senior level executives or as tool of trade vehicles for making employees more effective and efficient. Given this scenario, companies now have to set out specific budgeting for their vehicle requirements not just in terms of purchase of cars but also for their administration and maintenance purposes. Large companies have to set up huge departments just for managing their fleet of company cars which is yet another component that is increasing their annual expenditure outlay. Aside of that purchase and addition of a depreciating asset item such as a car does not make for good fi nancial management of their balance sheet. In such situation introduction of a concept like car leasing or outsourcing their fleet management requirements to an external organization is turning out to be a winning strategy for many organizations. Fleet outsourcing helps companies not only reduce the burdens of administrative expenses but also allows them to be more flexible if providing better perks to
Sanjeev Prasad, Managing Director, LeasePlan India Ltd.
their employees by way of company cars. Outsourcing their vehicle requirements to a car leasing company offers many benefits to the companies as opposed to buying and maintaining their own vehicles. Firstly as car leasing companies provide operational leasing options companies get the benefit of showing their expenditures on vehicle as off-balance sheet expenses, which has a significant impact on their bottomline. Managing a large fleet of cars requires manpower in large
number right from acquisition of the vehicles till disposal. This has got huge administrative implications for companies. The administrative personnel need to negotiate with multiple sets of dealers for various vehicle needs for purchases which require a lot of time and effort. Aside of that, post purchase of those vehicles company staff have to deal with multiple vendors and dealers for service and periodic maintenance of the vehicles including renewal of insurance policies, etc. Engaging a operational leasing or vehicle outsourcing companies would
eliminate all the administrative overheads that cost companies a huge amount of money. Aside of that, operational leasing companies can offer vehicle at Full Service Market Value rates that eventually reduces overall cost of ownership of vehicles for companies. It also helps them plan their operational expenses budgets in a much more predictable manner as the operational leasing company takes care of all their vehicle maintenance aspects for a fi xed cost built in into the EMI of the vehicle. Additionally, companies can manage their risks better as they do not have to bother about the volatility of the used cars market. During the downturn many companies in the United States had to sell their used cars at rock bottom prices as there were no takers for their cars. However, by engaging an operational leasing partner, companies can manage their used car value risks in a much better manner because operational leasing companies shoulder the risk by discounting the market value of the car post the lease period and provisioning for it into the total cost of ownership of the vehicle for the company. Given this scenario, companies that are looking at providing company cars to employees either as part of their retention strategies or for promoting employee effectiveness, engaging an operational leasing partner can be a winning strategy that helps companies keep costs at bay. - Sanjeev Prasad, Managing Director, LeasePlan India Ltd.
Operational efficiency pivotal for growth
T
he automotive industry in India continues to be a highly competitive industry, due to increasing and constantly changing consumer demands, organizational restructuring, the global energy and financial crisis and high barriers to entry. In addition, introduction of new models and low cost passenger cars in 2011 have added to the already existing competition faced by car makers. The Indian Auto industry is engaged in a watershed period as a result of the current economic environment. The ever increasing demand for vehicles is subdued due to increasing interest rate and fuel costs that has significantly impacted common man’s cash flow. In reaction to these factors, auto manufacturers have to adopt measures or rework their strategies to keep their customers engaged and induce them to pursue their dream of owning or changing their car. This could be achieved either through operational efficiencies or innovative marketing strategies. Operational efficiencies can be achieved by adopting flexible manufacturing processes; triggering the need for innovative and responsive supply-chain solutions. At the same time, OEM’s down through tier 1 and tier 2 suppliers should continue to implement aggressive costsaving measures, manage labor
costs, adapt to new regulations, retain marketplace sustainability, develop more fuel efficient/ alternative vehicles and implement new technologies, all with a focus on remaining competitive in the global marketplace. Re-jig or innovate marketing strategies by introducing buy back options for old cars, providing extended service contracts, introducing discount schemes for bulk purchases, providing choices of fi nance available at the dealers place, providing different fi nancing scheme like bullet payment at the end of period, operating leases etc. However, both the above could be a double edged sword and if not acted upon in a pre planned or controlled manner, could lead to quality/ product issue (too much cost savings) or service/ delivery issue (too much service commitments). These techniques have to be adopted in a balanced manner so that a right equilibrium is achieved so as to minimize cost and maximize sales. Hence it is imperative that a Risk Assessment (RA) be done to understand the impact of any new initiatives that are undertaken. An important contribution of risk assessment is to help executives and their boards make better choices during the strategy process. Boards and management need an effective RA process to effectively discharge their
responsibilities, especially in today’s rapidly changing environment. RA is nothing but a systematic and forward-looking analysis of the impact and likelihood of potentially planned future events on the achievement of an organization’s business objectives within a stated time horizon. It is the process of identifying, sourcing and evaluating individual risks and the interrelationships between risks. Effective risk assessment leads to formulation of risk responses. Therefore the risk assessment activity is undertaken with a strong bias toward determining the need for further action. Risk primarily comes from uncertainty about the future. The sources of uncertainty, an enterprise must understand and manage, may be external or internal. Risk emanates from environment (uncertainties affecting your business model like increasing input costs, fuel prices and interest rates), processes (uncertainties affecting the execution of business model like supply interruption due to transport labor strike) and information for decision making (uncertainties on accuracy of demand forecast, customer taste, etc). Fundamentally risk is about knowledge. When management lacks knowledge, there is greater risk. Thus an important source of risks relates to the relevance,
timeliness and reliability of information about the external and internal environment. The risk on reliability of information for decision-making process is directly affected by the effectiveness and reliability of Knowledge Management processes (including information processing systems) for capturing “relevant” data, converting that data into information and providing that information to the appropriate managers in the form of timely written reports and oral communication. An effectively functioning RA infrastructure can become one of the root differentiators between mere survivors and industry pacesetters. Beyond delivering the above benefits, redefining the value proposition of risk assessment will add to the CEO’s story line with stakeholders in today’s demanding environment. A RA approach helps an organization to build its image and reputation with customers, suppliers, employees and the capital markets, all of which are keys to sustaining a successful business enterprise. Apart for what Auto makers could do in the dynamic environment, one must not forget the customer. As information is easily available and accessible, today’s customer is more knowledgeable and intelligent so as to take an informed decision. Customers are no longer
susceptible or gullible to marketing gimmicks. Apart from need and status symbol they are also looking at value for money. Car penetration ratio in India is very low thereby indicating an opportunity for car makers to sell more. The Indian population is very young and majority of them (over 65%) hover below the age of 35. Competition and peer pressure has led some immature young individuals in this age group in buying vehicles which they cannot afford to maintain over the long run leading to defaults in meeting their EMI obligation to fi nancial institutions. This has resulted in repossession of vehicles, collection agents of financial institutions coming to work place or home to collect their dues leading to shame and embarrassment thereby adding to lifestyle disorders like hypertension, high blood sugar etc. It is imperative that a young customer be guided or oriented so that sense prevails over impulsive/ forced buying. To conclude, both OEM’s as well as Customers have to take appropriate actions based on perceived risk/ threat to safeguard their interest to achieve their long term goals/ objectives in a dynamic environment currently prevailing in India. - Adithya Bhat, MD, Protiviti Consulting
38
Auto Monitor
GLOBAL WATCH
1 - 15 April 2011
Japanese auto Cos defer production due to severe impact of earthquake H onda, the Japanese carmaker that builds most of the autos it sells in the US at North American plants, temporarily halted orders from US dealers of Japan-built models after a suspension of production there following the earthquake, according to a Bloomberg report. Honda informed US Honda and Acura dealers, who typically order vehicles six weeks in advance, of the suspension in a memo, said Christina Ra and Gary Robinson, US spokespeople for the Tokyobased company. The order will affect models that would have been sold in May. ‘While we plan to resume automobile production in Japan as quickly as possible, we can-
not say with certainty when those production plants will return to their full capacity,’ Executive Vice President, Honda US, John Mendel. Nissan said that it has begun monitoring vehicles built in Japan for any traces of radioactive material. ‘Looking ahead, we will continue to implement all appropriate measures to reassure the public that all products from our company remain within globally accepted safety standards and until we are confident that any risk of contamination is completely removed,’ Nissan said in a brief statement. Over the past week, radiation has leaked from a nuclear power plant north of Tokyo that
was damaged by flooding after last Friday’s massive earthquake unleashed a tsunami. Employees at BMW and Volkswagen are among many European nationals leaving Japan as the government battles to cool nuclear reactors damaged by last week’s record earthquake. As Prime Minister Naoto Kan called for calm in the wake of Japan’s worst disaster since World War II, expatriates and their employers were left trying to assess whether efforts to prevent a nuclear spill would be successful. Volkswagen, which employs 600 sales and technical staff in the country, repatriated 30 of its around 40 German staff, a VW spokesman told Automotive
News Europe. BMW, which employs over 750 people in Japan, gave its German staff the chance to leave the country and around 50 staff returned to Germany. France has already begun evacuating its nationals, Prime Minister Francois Fillon said, while Germany has also advised citizens to leave Japan. About 100 Germans live in the Tohoku area, where a magnitude nine quake struck Japan, while 2,600 people are in Tokyo and 900 in the Kanagawa area, Mari Shindo said a spokeswoman at the embassy.
Unlike France and Germany, the US hasn’t recommended its citizens leave Japan. John Roos, US, ambassador to Japan, said today that countries must make their own decisions and the US will do so based on the safety of Americans. Honda extended its earthquake-spurred production halt in Japan by three days while Mazda and Suzuki reopened their respective facilities. The suspensions affect all Honda and Acura models imported from Japan -- including the Acura RL and TSX, as well as imported versions of the Honda Accord and Civic and hybrids such as the Insight and CR-Z, which are only made in Japan. Also off-line is production of the Fit small car -- another Honda model sourced exclusively from Japan. Japanese manufacturers are struggling to resume production in Japan amid a shortage of parts and workers in the wake of last week’s earthquake and tsunami. Honda manufactured 69,170 cars in January in Japan, where it makes 22 percent of its vehicles. Mazda, meanwhile, said it will reopen its plants in Hofu and Hiroshima at the earliest. The company called the move a ‘temporary resumption of operations’ and said it will decide later when to resume full production of parts and vehicles. Mazda had suspended production of virtually every vehicle in its US lineup except the Mazda6 sedan and Mazda Tribute small SUV, which is made in the United States. Suzuki will resume dayshift production at two vehicle assembly plants and a motorcycle assembly line at a third plant to complete vehicles already on the line, Suzuki said. Aisin Seiki, a large auto supplier partly owned by Toyota Motor, said deliveries to GM and other North American customers have not been disrupted by the turmoil in quake-ravaged Japan, according to The Detroit News. ‘There has been no impact on the delivery or supply of Aisin transmissions to any of our North American customers, including GM’s plant in Shreveport, which we continue to supply,’ said Assistant Vice President, Aisin World America, Chuck Sanders. Aisin made the statement amid speculation about the reason for GM’s announcement that it would suspend pickup production in Shreveport for a week because of a shortage of parts related to events in Japan. GM has not identified the part in short supply or the supplier providing it. Aisin halted output at its Japanese plants after the quake but said it has sufficient inventory in North America to supply its customers here.
40
Auto Monitor
1 - 15 April 2011
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PRODUCT INDEX Product ............................................................ pg no.
Countersinks ................................................................................. 47
Paint shop machines .................................................................... 16
5c indexers ................................................................................... 5
Crane duty motors ........................................................................ 19
Powder matallergy products ........................................................ 6
Acc. Padel sensor assy. ................................................................. 23
Cutting machines.......................................................................... 16
Power chucking cylinders............................................................. 48
ADEA-Automotive Dealership Excellence Awards ........................ 34
Cutting tools ................................................................................. 43
Pre tereatment systems ................................................................ 16
Auto mation mfrs ......................................................................... 5
Cylindrical grinders ...................................................................... 48
Quality steel.................................................................................. 11
Auto parts ..................................................................................... 15,35
Diamond tools .............................................................................. 47
Radiator grills ............................................................................... 21
Automation................................................................................... 16
Dip spin coating machines ........................................................... 16
Reamers ........................................................................................ 47
Automobile parts.......................................................................... 6
Drilling tools ................................................................................. 47
Rear axles ..................................................................................... 15
Automotive components .............................................................. 21
E-coatings solutions ..................................................................... 2
Rotary tables ................................................................................ 5
Axles ............................................................................................. 15
Egr valve ....................................................................................... 23
Rubber parts for automobile industry ......................................... 20
Bearings ........................................................................................ 28
Electronic control unit.................................................................. 23
Scada & dcs implimentaion ......................................................... 16
Billet shearing machines .............................................................. 35
Exhibition- Engineering Expo ....................................................... 1,4,30
Self adhesive tapes ....................................................................... 28
Blow moulding ............................................................................. 21
Exhibition-Blech India 2011 ......................................................... 27
Small precision parts .................................................................... 21
Bolts.............................................................................................. 15
Extension springs ......................................................................... 3
Sme car loan ................................................................................. 33
Brake motors ................................................................................ 19
Exterior trims................................................................................ 21
Solid carbide drills........................................................................ 26
Building automation .................................................................... 16
Factory automation ...................................................................... 16
Solid carbide drills with ic ............................................................ 26
Buses............................................................................................. 7
Financial assistance schemes for msmes ..................................... 31
Solid carbide mills ........................................................................ 26
C frame power press ..................................................................... 35
Flange motors ............................................................................... 19
Solid carbide reamers .................................................................. 26
Cable carriers................................................................................ 28
Fluidized bed coating machines. ................................................. 16
Solid carbide reamers with ic ....................................................... 26
Cable connectors .......................................................................... 28
Foot mounting motors ................................................................. 19
Solid carbide special drills ........................................................... 26
Cables ........................................................................................... 19
Forging press ................................................................................ 35
Solid carbide special mills ............................................................ 26
Cam shaft / crank shaft grinding machines ................................. 41
Friction drop hammers ................................................................ 35
Solid carbide special reamers ...................................................... 26
Castings forgings .......................................................................... 35
Friction screw press ...................................................................... 35
Solid carbite tools ......................................................................... 43
Ced coating machines................................................................... 16
Front axles .................................................................................... 15
Stainless steel gear parts .............................................................. 6
Ced/ktl coatings ............................................................................ 2
Gear hobbing machines ............................................................... 41
Strip steel ...................................................................................... 11
Chains ........................................................................................... 28
Glide coating machines ................................................................ 16
Taps............................................................................................... 47
Chemlok coating machines .......................................................... 16
Grinding machines ....................................................................... 41
Testing machine ........................................................................... 12
CNC ............................................................................................... 39
Gun drills ...................................................................................... 47
Tool bits ........................................................................................ 11
CNC cutting machines................................................................... 16
H frame power press .................................................................... 35
Tool steel ...................................................................................... 11
CNC hmcs ...................................................................................... 39
Hammers ...................................................................................... 35
Torsion springs ............................................................................. 3
CNC laser cutting machines .......................................................... 16
Hmc horizontal spindle ................................................................ 5
Tourism ......................................................................................... 29
CNC lathe ...................................................................................... 5,48
Hollow bars................................................................................... 17
Transmission gears ....................................................................... 6
CNC machines ............................................................................... 39
Horizontal & vertical machining centers ..................................... 41
Trims & pillars .............................................................................. 21
CNC oval turning centers .............................................................. 39
Horizontal CNC machines ............................................................. 39
Tube bending technology............................................................. 24
CNC oxy fuel cutting machines ..................................................... 16
Horizontal machining center ....................................................... 39
Turning machines ......................................................................... 41
CNC plasma cutting machines ...................................................... 16
Imaging & vision systems ............................................................. 16
Turrets .......................................................................................... 48
CNC turn mill centers.................................................................... 39
Instrument panel.......................................................................... 21
Two wheeler parts ........................................................................ 21
CNC turning center ....................................................................... 39
Laser welding machines ............................................................... 41
Tyres.............................................................................................. 37
CNC vertical machining center ..................................................... 39
Machinery steel ............................................................................ 11
Under the hood ............................................................................ 21
CNC/vmc machines ....................................................................... 13
Marking solutions ......................................................................... 8
Vaccum pump ............................................................................... 23
Coating machines ......................................................................... 16
Metal cutting tools ....................................................................... 26
Ventilators .................................................................................... 28
Coating plants............................................................................... 16
Milling cutters............................................................................... 47
Vertical line series ........................................................................ 39
Coating systems ............................................................................ 16
Modular tooling system ................................................................ 47
Vertical machining centers........................................................... 48
Commercial vehicles..................................................................... 7
Motors........................................................................................... 19
Vmc vertical machines ................................................................. 5
Compression springs .................................................................... 3
Nuts .............................................................................................. 15
Vmc-linear series .......................................................................... 39
Connectors.................................................................................... 28
Paint shop equipments ................................................................ 16
Wire forms .................................................................................... 3
FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover
1 - 15 April 2011
GLOBAL WATCH
Auto Monitor
41
Olof Persson appointed new Volvo CEO
T
he Board of Directors of AB Volvo has decided to appoint Olof Persson, 46, currently President of Volvo Construction Equipment, as the new President and Chief Executive Officer of Volvo. Olof Persson will assume the position as President of AB Volvo and CEO of the Volvo Group on September 1 this year when Leif Johansson, as announced previously, retires. As of May 1, Olof Persson will become Executive Vice President and deputy CEO and work parallel with Leif Johansson. ‘During his time at Volvo Aero and Volvo Construction Equipment, Olof Persson has gained the right experience and demonstrated the characteristics that make him highly suited to take over as President of AB Volvo
Volvo CE to spend $100 million in NA
O
ver the next couple of years, Volvo CE plans to spend 100 million USD in its Shippensburg, PA, USA manufacturing facility and start production of Volvo wheel loaders, excavators and articulated haulers in North America. Also, the Volvo CE North American sales headquarters and Volvo Rents will relocate from Asheville, NC to Shippensburg, PA by September 2012. ‘It makes sense, when possible, to manufacture products close to where our customers are,’ said Olof Persson, President and CEO of Volvo Construction Equipment. ‘The global demand for Volvo construction equipment is rapidly increasing and we need to make investments to meet future demands in the region. Producing Volvo wheel loaders, articulated haulers and excavators in Shippensburg will result in shorter lead times for our customers. We will work closely with local suppliers to increase the North American content of our products. This will further reduce our exposure to exchange rate f luctuations, which will already be positively affected by our bringing more production to the USA’. A world class Customer and Demonstration Center w ill be built in Shippensburg. In addition, Volvo CE will put up a new office building on the campus to house its Regional Sales Headquarters, its Volvo Rents offices, and its Training Center. All Asheville, North Carolina based employees will be given the opportunit y to relocate to Shippensburg. The move, which will affect about 220 employees, will be concluded no later than September 2012. A comprehensive plan to assist with relocation is under development. For those employees who are unable or not prepared to relocate, an extensive human resources plan is currently being put in place. Manufacturing Volvo wheel loaders, articulated haulers and excavators in Shippensburg, PA will have no significant impact on the current production in other Volvo locations. It will also further improve the competitiveness and profitability of the total business.
and CEO of the Volvo Group and replace Leif Johansson who has strategically transformed and grown the Volvo Group while maintaining the core values of the company,’ says Louis Schweitzer, Chairman of the Volvo Board. ‘Naturally, it is both an honor and a challenge to be provided with the oppor- Olof Persson - the incoming CEO tunity to lead ble and committed employees, Sweden’s largest company,’ says with a unique culture and with Olof Persson. ‘Volvo is a company many strong and exciting brands with tremendously knowledgea-
and I am truly looking forward to the task.’ The Board of Directors of AB Volvo has reviewed a large number of both internal and external candidates for some time with a view to identifying a replacement for Leif Johansson. Olof Persson was chosen due, among other factors, to his experience in managing large global organizations and to his successes as president of two of the Volvo Group’s subsidiaries. ‘Olof Persson has performed remarkably well, first as President of Volvo Aero and then of Volvo Construction E qu ipment,’ say s L ou i s Schweitzer. ‘During his time at Volvo Construction Equipment in the midst of the financial crisis, he succeeded in restructuring the company and making
it one of the most successful in its industry, in terms of both profitability and size – this was no small achievement.’ As of May 1, Olof Persson will become Executive Vice President of AB Volvo as well as Deputy CEO during the period until the end of August. Olof Persson’s successor as President of Volvo Construction Equipment will be announced in the near future. Olof Persson is a graduate economist and holds a BA from Karlstad University. He began his career at ABB and, among other assignments, held a number of executive positions at AdTranz and Bombardier. In conjunction with his appointment as President of Volvo Aero in 2006, he also became a member of Volvo’s Group Executive Committee.
42
Auto Monitor
GLOBAL WATCH
1 - 15 April 2011
International auto round-up EUROPE
AMERICAS
VW begins Golf cabrio production at former Karmann plant
Auto parts shortage hits GM’s facility
Volkswagen has begun production of the new Golf cabriolet at a former Karmann plant in Osnabrueck, Germany. The plant, which VW bought last year, may also be used as an overflow facility for manufacturing the Porsche brand Boxster and Cayman models going forward, VW said. Osnabrueck is now the sixth production facility for VW in the German state of Lower Saxony. The state holds a 20 percent stake in the automaker. VW has invested approximately 300 million euros ($424 million) in the facility, which covers the entire automotive process chain from vehicle development through tooling to production and will have an annual capacity of around 100,000 vehicles. The plant currently employs around 1,250 workers building the Golf convertible, but VW say that this will rise to 1,800 by the end of the year. VW took over Karmann’s production plant in Osnabrück after the coachbuilder and convertible rooftop specialist fi led for bankruptcy protection in April last year when a trend among automakers to reduce outsourcing the assembly of entire models saw new orders dry up.
A shortage of auto parts has prompted GM to suspend production of trucks in Shreveport as the turmoil in quake-ravaged Japan spread to other regions. GM did not identify the parts or the supplier but said that the production at the Shreveport plant would be halted all of next week because of a supply interruption resulting from the crisis in Japan. Most of Japan’s auto production is still at a halt after earthquake and subsequent tsunami disrupted production of components, damaged transport links and crippled nuclear power plants. Toyota and Fuji Heavy Industries, owner of the Subaru car company, have canceled overtime at their US auto plants to conserve parts. GM assembles midsize Chevy Colorado and GMC Canyon trucks at the Shreveport plant. It produced nearly 50,000 vehicles there last year, running on one shift since September 2008.
Nissan in talks on buying more than 25 percent of AvtoVAZ Nissan is in talks with Russian shareholders of AvtoVAZ about buying a more than 25 percent stake. The stake would allow the Renault-Nissan alliance to gain control of Russia’s biggest automaker, which builds Lada cars. Nissan is talking with both Troika and Russian Technologies about acquiring the stake in AvtoVAZ over several years. Renault SA will continue to hold its blocking stake in AvtoVAZ. Renault spokeswoman Oxana Nazarov said negotiations to raise the alliance’s stake are continuing and a fi nal decision hasn’t been made. Carlos Ghosn’s Renault-Nissan alliance is moving to take a majority stake in Togliatti-based AvtoVAZ, after Renault’s $1 billion purchase of a 25 percent stake in 2008. Renault is upgrading AvtoVAZ’s sprawling plant in Togliatti to assemble models for all three carmakers. Renault also owns 43 percent of Nissan. The parties haven’t agreed on the value of the AvtoVAZ stake or the time period in which Nissan may gain the stake, Skvortsov said. Troika and Russian Technologies each own 25 percent of AvtoVAZ.
Tesla will roll out high end model first Tesla said the fi rst 1,000 units of the battery-powered Model S sedan it produces next year will be the most expensive version. About 5,000 of the cars will be made at a factory in Fremont in 2012, Tesla said. The fi rst 1,000 will be the ‘Signature Series’ model, which can travel as far as 300 miles on a full charge and has a base price of about $77,400 before a federal tax credit, Tesla said. Tesla last month said its fourth-quarter net loss widened to $51.4 million from $23.2 million a year earlier as it increased investment in the Model S. The company, named for inventor Nikola Tesla, seeks to become the leader in batterypowered cars, aided by supply agreements with Toyota and Daimler. The base-level Model S, which goes 160 miles per charge, is about $57,400, and a version able to go about 230 miles will be about $67,400, the company said. The prices for all the Tesla models are before a $7,500 federal tax credit.
GM’s Opel cuts output in Germany, Spain amid Japan parts shortage GM will suspend car production at Opel plants in Spain and Germany next week because of a shortage of parts from Japan. Opel’s factory in Zaragoza, Spain, will be closed March 21 and for half a day on March 25, and two shifts at the plant in Eisenach, Germany, will be canceled on March 21 and March 22, said Opel spokesman Stefan Weinmann. Both sites make the Corsa small car, while the Zaragoza factory also produces the Meriva minivan. Plant shutdowns across Japan following the earthquake, tsunami and nuclear crisis threaten supplies of car parts for manufacturers across the globe. Renault said it would cut output at its factory in Busan, South Korea, by 15 to 20 percent after disruptions to Japanese supplies mainly affecting the Renault-owned Samsung SM7. The factory normally produces 20,000 vehicles per month.
ASIA VW to launch Seat brand in China Volkswagen plans to introduce its Seat brand in China and will have a stand for the panish cars on display at the Shanghai auto show next month. Francisco Javier Garcia Sanz, a member of the carmaker’s management board, announced VW’s plans for Seat at a press conference. Volkswagen currently markets the Audi, Lamborghini, Skoda and VW brands in China. Seat, which is headquartered in Martorell, Spain, specialises in affordable compact cars. VW is trying to move the brand somewhat upscale with a lineup of sporty cars. VW’s joint venture with China FAW Group Corp. will run the Foshan plant, which is located in southeast China’s Guangdong province.
Sweden’s SKF starts work on bearings factory in Jinan SKF began construction of a new factory in the east China city of Jinan. The factory will manufacture tapered roller bearings and truck hub units for vehicle producers in China and elsewhere in Asia. With an investment of SEK 590 million ($92.4 million), the factory will start operations by the first half of 2012. The plant will initially employ 500 workers. SKF currently operates 11 automotive and non-automotive plants in China, which produces bearings, seals, lubrication systems among other products.
Hyundai issuing two recalls for Elantra airbag issues Hyundai recently issued two new recalls covering nearly 200,000 Elantra vehicles to address concerns that airbags may not deploy properly. In January, the National Highway Traffic Safety Administration opened an inquiry into early warning data on airbag issues with the Elantra. As a result, Hyundai decided to conduct the recalls. One recall covers 188,697 2007-2009 Elantra models over concerns the front passenger airbag may deploy in a crash - even when it’s supposed to be inactive. The seats have a sensor to activate the passenger airbag only if an adult is sitting in the seat. It’s to prevent injuries to a child who is sitting in a front seat. Hyundai said the electrical connector to the weight sensor could malfunction especially if a passenger spilled liquids. As a result, the passenger airbag could deploy regardless of the weight of the occupant. Hyundai will separately recall 95,783 2007-2008 Elantra vehicles over concerns that the second stage of an airbag could deploy even if the driver is sitting very close to the airbag. Hyundai will reprogram the airbag control module to prevent interference from causing the airbag to enter the default mode.
AutoNation, Asbury paying pre-recession prices for new dealers Auto dealership chains are pursuing new stores and paying pre-recession multiples on acquisitions to expand their networks as the US auto market recovers. AutoNation, Penske Automotive Group and Group 1 Automotive are paying 3 to 5 times earnings before interest and taxes for acquisitions after failing stores were sold during the recession for book value or scrappage prices. US new-vehicle sales, which fell to a 27-year low of 10.4 million in 2009, are forecast to rise to 12.9 million this year. New-vehicle sales per US dealership this year may rise to levels reached before the recession, auto-dealership consultant Urban Science said last month. Sales per dealer may reach those levels with 3.2 million fewer industry deliveries than in 2007 because manufacturers led by GM and Chrysler Group closed locations as part of their bankruptcies in 2009, the fi rm said. AutoNation, based in Fort Lauderdale, Florida, will open six dealerships in 2011 that were awarded by manufacturers and spend $500 million in the three years through 2012 on renovating existing stores, COO Michael Maroone said.
Honda recalling 33,000 minivans over faulty windshield wipers Honda is recalling 33,341 2011 Honda Odyssey minivans over windshield wiper defects. The company said if the front windshield wiper blades become frozen to the windshield, the rod may separate from the motor, making the wipers inoperative. That can increase the risk of a crash. Honda received the fi rst reports of an inoperative wiper in Canada and the United States in November. In total, Honda has received 129 warranty claims in North America — most in cold-weather areas — related to the issue. Honda will replace the front windshield wiper. The company will start notifying customers in April.
Continental recalling 390,000 tires used on Ford trucks C ont i nent a l’s Nor t h American unit said it is recalling 390,000 truck tires after a fatal crash of a Ford pickup truck in September. Most of the recalled tires were used as original equipment on new Ford F-250 and F-350 vehicles. The company said 330,000 of the tires were used on new 2008-09 Ford F-250 and F-350 trucks, while the rest were sold as replacement tires on Ford and other trucks. The recall by South Carolina-based Continental Tire was prompted after the company received notice in January of a fatality from a tire that has now been recalled. The company hasn’t identified a root cause of the crash, it told the National Highway Traffic Safety Administration. Continental and Utah State police are trying to figure out if the tire was to blame. Continental spokeswoman Kathryn Blackwell said the fatal incident occurred in September 2010, in Utah, when a passenger was ejected from a Ford truck. The driver sustained minor injuries. The tire on the F-250 was original equipment. Continental has been studying the issue since September 2009, when it began to see a higher-thanusual number of warranty claims and property damage claims, the company said. The recalled tires are LT275/70R18 125/122S — with outline white letters and black sidewall and Contitrack, LT275/70R18 125/122S, black sidewall produced between May 2007 and September 2008.
1 - 15 April 2011
GLOBAL WATCH
Auto Monitor
43
Porsche stock sale to cut debt to $2.1 billion
P
orsche Automobil Holding aims to cut debt to about Euro 1.5 billion ($2.1 billion) with the proceeds from a five billion euro stock sale. Net debt at Porsche’s holding company increased to Euro 6.34 billion as of December from Euro 6.05 billion on July because of tax repayments, Chief Financial Officer Hans Dieter Poetsch said. Poetsch is also Chief Financial Officer at Volkswagen AG, which is in the process of taking over Porsche SE. Orders at the Porsche’s carmaking operations are ‘high’ at the start of 2011 as demand for models such as the Cayenne SUV and Panamera sedan is ‘undiminished,’ Matthias Mueller, t he unit’s CEO said. Fullyear revenue at Porsche may exceed last year’s record levels. Porsche and V W Group agreed to combine in August 2009 after Porsche racked up more than Euro ten billion of debt in an unsuccessful attempt to gain control of V W. Wolfsburgbased Volkswagen now owns 49.9 percent of the Porsche AG carmaking operation. Proceeds from the share sale, which Porsche aims to complete by May, will help pay back Euro 2.5 billion bank loan expiring at the end of June. The merger, originally scheduled for completion in the second half of 2011, has been put in doubt because of German legal obstacles. An investigation into share-price manipulation allegations will likely push the deal’s completion into 2012, Porsche said. US based short sellers of VW stock have sued Porsche, claiming the carmaker secretly piled up VW shares and later caused the investors to lose more than $one billion. At the same time, institutional investors in Germany are seeking 2.5 billion euros in damages over the matter. Cutting debt ‘is a prerequisite for the merger,’ Poetsch said. ‘Of course, we have not cleared all hurdles yet. However, we can underscore that Porsche assumes that it will be possible to successfully clarify the current uncertainties and that the merger will be able to go ahead, even if this is after 2011.’ A merger of Porsche and Volkswagen could be delayed and might take a different form than initially planned. But ‘our common goal is and remains a merger,’ stressed Chairman, VW and Porsche Holding, Martin Winterkorn during an annual Porsche general assembly in Stuttgart, Southern Germany. The probability that it will happen this year has fallen from 70 percent to 50 percent however owing to legal proceedings initiated by investment funds in the US and a German investigation, the companies said. Finance Director, Porsche Holding SE, Dieter Poetsch said a probe of two former Porsche executives suspected of stock market manipulation ‘will be completed at the earliest in early 2012.’ In the United States, investment funds have fi led another lawsuit against the maker of 911 sports cars for allegedly causing the funds to suffer several billion dollars in losses as a result of misleading comments on Porsche’s intentions to take over VW. The current plan is still to merge VW and Porsche, possi-
bly by having VW buy the shares in the manufacturing division Porsche that it does not already own via stock options exercised between November 2012 and January 2015. ‘We cannot say with certainty which path Porsche will take,’ Poetsche said in reference to the holding company. V W,
which is Europe’s biggest carmaker and owns brands such as Audi, Lamborghini, Seat and Skoda wants to make Porsche its tenth brand. A crucial step towards that goal is a planned Porsche capital increase to pay down debt. A five-billion-euro (seven-billion-dollar) operation is planned, while the holding
company’s debt stands at 6.34 billion euros. Still scheduled to take place by the end of May, the capital increase would involve the emission of an equal number of ordinary and preferred shares according to Porsche SE. It declined to provide more information however before obtaining
approval from the German fi nancial market regulator BaFin. ‘We are confident this offer will convince our shareholders,’ Winterkorn commented. The Porsche and Piech families, which are the main shareholders in Porsche SE, ‘will play an important part in this capital increase,’ Poetsche said.
44
Auto Monitor
1 - 15 April 2011
SIAM DATA
PRODUCTION AND SALES FLASH REPORT FOR FEBRUARY 2011 Category Segment/Subsegment Manufacturer.
Production For the month of February 2010
2011
Cumulative April-February 09-10
10-11
Source: SIAM
Domestic Sales For the month of Cumulative February April-February 2010
I Passenger Vehicles (PVs) A : Passengers Cars - No. of Seates Including Driver not exceeding 6 A1 : Mini - (Upto 3400 mm) Maruti Suzuki India Ltd (Maruti 800 ) 3,336 3,521 36,348 35,581 3,178 Tata Motors Ltd (Nano) 4,201 8,530 25,509 58,646 4,105 Total 7,537 12,051 61,857 94,227 7,283 A2: Compact (3401 - 4000 mm) Fiat India Automobiles Pvt Ltd (Palio, Fiat500,Grande Punto) 1,421 1,167 13,525 11,628 1,428 Ford india Pvt Ltd ( Fusion, Figo ) 2,116 9,476 2,571 79,983 106 General Motors India Pvt Ltd (Beat, Spark,U-VA) 7,741 6,741 52,014 66,488 8,215 Honda Siel Cars India ltd (Jazz) 481 790 9,249 3,270 233 Hyundai Motors India Ltd(Santro,Getz, i10, i20) 48,648 47,277 492,753 483,287 28,198 Maruti Suzuki India Ltd (Alto,Wagon R,Zen,Swift, A-Star, Ritz) 72,322 83,707 710,303 841,782 60,380 Nissan Motor India Pvt Ltd (Micra) 0 12,329 0 64,752 0 SkodaAuto india p.ltd ( Fabia ) 626 1,496 5,411 9,433 673 Tata Motors Ltd (Indica) 13,394 14,610 107,893 130,754 11,502 Toyota Kirloskar Motor Pvt Ltd (Etios-Liva) 0 23 0 58 0 Volkswagen India Pvt Ltd (Polo) 0 3,358 0 25,205 242 Total 146,749 180,974 1,393,719 1,716,640 110,977 A3: Mid-size (40001-4500 mm) BMW India Pvt Ltd (Z4 Roadster) 0 0 0 180 4 Ford India Pvt Ltd (Ford ikon,Fusion,Fiesta) 2,055 1,059 26,183 17,268 2,769 General Motors India Pvt Ltd (Cheverlet Aveo NB) 341 366 3,320 3,904 410 Hindustan Motors Ltd (Ambassador, Lancer,Cedia) 727 322 8,016 6,393 762 Honda Siel Cars India Ltd (City) 4,192 3,653 41,868 44,093 5,076 Hyundai Motors India Ltd (Accent,Verna) 4,030 4,603 42,632 52,121 2,752 Mahindra Renault Pvt Ltd (Logan) 518 1,013 5,611 10,697 537 Maruti Suzuki India Ltd (SX4,Dzire) 10,301 12,838 89,485 118,701 10,254 Nissan Motor India Pvt Ltd (Nissan 370Z) 0 0 0 0 0 Tata Motors Ltd (Indigo,Marina) 6,643 8,419 21,746 52,307 7,373 Toyota Kirloskar Motor Pvt Ltd (Etios-Sedan) 0 2,717 0 4,988 0 Volkswagen - Audi (TT, R8) 0 0 0 0 0 Volkswagen India Pvt Ltd (Beetle) 0 3,679 0 15,983 36 Total 28,807 38,669 238,861 326,635 29,973 A4: Executive (4501-4700 mm) BMW india pvt Ltd (3 Series) 166 256 1,251 1,868 189 Fiat India Automobiles Pvt Ltd (Linea) 940 720 9,948 8,177 828 General Motors India Pvt Ltd (cheverlet Optra, Cruze) 801 1,022 4,112 10,828 824 Honda Siel Cars India Ltd (Civic) 539 480 5,601 4,272 538 Hyundai Motors India Ltd (Elantra) 0 0 0 0 0 Maruti Suzuki India Ltd (Kizashi) 0 0 0 0 0 Mercedes-Benz India Pvt Ltd (C-Class,SLK Roadster, CLK Cabriolet, E-Coupe) 122 208 1,487 2,071 175 Skoda Auto India Pvt Ltd (Octavia,Laura) 417 455 5,806 6,134 759 Toyota Kirloskar Motor Pvt Ltd (corolla) 879 986 8,835 9,752 863 Volkswagen - Audi (Q5) 0 0 0 0 33 Volkswagen India Pvt Ltd (Jetta) 0 0 273 3,591 311 Total 3,864 4,127 37,313 46,693 4,520 A5: Premium (4701-5000 mm) BMW india pvt Ltd ( 5 & 6 Series) 48 400 1,186 2,505 122 Honda Siel Cars India Ltd ( Accord ) 240 270 2,677 2,084 299 Hyundai Motors India Ltd ( Sonata ) 26 20 376 201 50 Mercedes-Benz India Pvt Ltd (E-Class, CLS) 156 303 1,166 2,468 161 Nissan Motor India Pvt Ltd (Teana)** 0 0 0 0 23 Skoda Auto India Pvt Ltd (Superb) 200 244 2,856 3,637 373 Toyota Kirloskar Motor Pvt Ltd (Camry ) 0 0 0 0 14 Volkswagen - Audi (A4,A6)* 0 0 0 0 136 Volkswagen India Pvt Ltd (Passat, Touareg) 0 0 55 639 75 Total 670 1,237 8,316 11,534 1,253 A6: Luxury (5001mm & above) BMW india pvt Ltd (7 Series ) 0 0 0 0 24 Mercedes-Benz India Pvt Ltd ( S-Class) 54 74 316 618 59 Volkswagen - Audi (Q7,A8) 0 0 0 0 43 Volkswagen India Pvt Ltd (Phaeton) 0 0 0 0 0 Total 54 74 316 618 126 187,681 237,132 1,740,382 2,196,347 154,132 Total A I Passenger Vehicles (PVs) B: Utility Vehicles (Uvs) B1: Max Mass upto3.5 tonnes (a): No. of seats including driver not exceeding 7 (M1(B1)) BMW india Pvt Ltd (X3, X5, X6) 0 184 0 217 29 Force Motors Ltd (trax) 2 5 25 29 3 Ford India Pvt Ltd (Endeavour) 331 303 2,198 2,767 348 General Motors India Pvt Ltd (Tavera, Captiva) 617 635 5,611 7,141 667 Hindustan Motors Ltd (Pajero) 97 224 1,362 2,355 100 Honda Siel Cars India Ltd (CR-V) 0 0 0 0 129 Hyundai Motors India Ltd (Tucson) 0 0 0 0 1 Mahindra & Mahindra Ltd (Scorpio, Bolero, Soft Tops, Hard Tops, Xylo) 8,527 9,589 82,137 96,122 8,022 Maruti Suzuki India Ltd (Vitara) 0 0 0 0 3 Mercedes-Benz India pvt. Ltd (GL-Class, M Class) 0 0 0 0 44 Nissan Motor India Pvt Ltd (X-Trail)* 0 0 0 0 21 Skoda Auto India Pvt Ltd (Yeti) 0 293 0 1,094 0 Tata Motors Ltd (Safari) 2,232 2,937 17,343 23,314 2,127 Toyota Kirloskar Motor Pvt Ltd (Innova,Prado) 3,065 3,255 24,893 34,448 3,020 Total 14,871 17,425 133,569 167,487 14,514 (b): No. of seats including driver exceeding 7 but not exceeding 9 (7+1 & 8+1) (M1(B2)) 0 0 10 0 0 Force Motors Ltd (Trax) General Motors India Pvt Ltd (Tavera) 80 99 1,412 1,276 96 International Cars & Motors Ltd (Rhino) 32 NA 738 575 33 Mahindra & Mahindra Ltd (Scorpio, Bolero, Soft Tops, Hard Tops, Xylo) 4,845 5,152 49,468 58,706 4,650 Maruti Suzuki India Ltd (Gypsy) 1,036 232 3,739 3,836 282 Tata Motors Ltd (Sumo, Safari, Winger) 1,700 1,419 7,125 11,806 759 Toyota Kirloskar Motor Pvt Ltd (Innova) 2,152 2,266 22,927 24,680 2,096 Total 9,845 9,168 85,419 100,879 7,916 Total B1 24,716 26,593 218,988 268,366 22,430 B2: Max. Mass upto 5 tonnes (a): No. of seats including driver not exceeding 13 (M1(A1)) Force Motors Ltd (Trax, Traveller) 548 802 5,156 7,559 559 General Motors India Pvt Ltd (Tavera) 851 831 6,242 8,707 850 Mahindra & Mahindra Ltd (Bolero, Soft Tops, Hard Tops) 180 0 7,567 1,452 129 Tata Motors Ltd (Sumo, Winger) 147 139 6,007 874 1,247 Total B2 1,726 1,772 24,972 18,592 2,785 Total Utility Vehicles (Uvs) 26,442 28,365 243,960 286,958 25,215 C: Multi Purpose Vehicles (MPVs)-Van type vehicles & Max Mass not exceeding 3.5 tonnes (M1(c)) Van Type Force Motors Ltd (trip) 0 49 0 276 0 Mahindra & Mahindra Ltd (Gio) 0 550 0 550 0 Maruti Suzuki India Ltd (Omini,Versa) 10,834 14,085 91,916 148,545 10,668 Tata Motors Ltd (ACE-Magic) 4,615 3,913 44,546 45,989 4,820 Total MPVs 15,449 18,597 136,462 195,360 15,488 Total Passenger Vehicles (PVs) 229,572 284,094 2,120,804 2,678,665 194,835 II Commercial Vehicles (CVs) M&HCVs A: Passenger Carriers A1: Max. Mass exceeding 7-5 tonnes but not exceeding 12 tonnes (M3(B1)) (b): No. of seats including driver exceeding 13 (M3(B1)) Ashok Leyland Ltd 125 60 1,412 1,404 105 JCBL Ltd 0 0 1 0 0 Swaraj Mazda Ltd 166 268 1,910 3,022 102 Tata Motors Ltd 459 354 3,994 5,105 663 VE CVs - Eicher 221 190 1,707 2,185 80 Total A1 971 872 9,024 11,716 950 A2: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(C)) (b): No. of seats including driver exceeding 13 (M3(C2)) Ashok Leyland Ltd 1,586 1,690 16,085 21,360 1,516 JCBL Ltd 7 0 157 14 7 Swaraj Mazda Ltd 11 5 34 67 20 Tata Motors Ltd 1,670 1,252 15,180 16,227 2,113 VE CVs - Eicher 7 37 208 234 6 Volvo Buses India Pvt Ltd 23 18 458 250 55 Total A2 3,304 3,002 32,122 38,152 3,717 A3: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(D))A3: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(D)) Passenger Carrier (D) Volvo Buses India Pvt Ltd 9 31 74 249 13 Total A3 9 31 74 249 13 Total M&HCVs(passenger carriers) 4,284 3,905 41,220 50,117 4,680 II Commercial Vehicles (CVs) M&HCVs B: Goods Carriers B1: Max Mass exceeding 7.5 tonnes but not exceeding 12 tonnes (N2(A3)) Ashok Leyland Ltd 251 319 1,755 2,644 187 Swaraj Mazda Ltd 498 491 3,786 4,258 406 Tata Motors Ltd 2,057 1,748 18,243 16,819 2,539 VE CVs - Eicher 1,702 1,926 15,517 20,635 2,035 Total 4,508 4,484 39,301 44,356 5,167 B2: Max. Mass not exceeding 16.2 tonnes (N3(A)) (a): Max. Mass exceeding 12 tonnes but not exceeding 16.2 tonnes (N3(A1)) Ashok Leyland Ltd 1,723 1,915 12,548 18,446 1,474 Tata Motors Ltd 4,787 5,209 33,885 46,252 3,934 VE CVs - Eicher 240 474 1,795 3,735 172 Total B2 6,750 7,598 48,228 68,433 5,580 B3: Max Mass exceeding 16.2 tonnes-Rigid Vehicles (N3(B1)) (a) Max. mass exceeding 16.2 tonnes but not exceeding 25 tonnes Ashok Leyland Ltd 2,584 1,811 16,357 22,036 2,469 Asia Motor Works Ltd 391 535 2,640 5,100 365 Force Motors Ltd 0 0 1 0 0 Mahindra Navistar Automotives Ltd 0 27 0 615 0 Tata Motors Ltd 5,604 4,875 49,440 51,604 5,742 VE CVs - Eicher 67 73 369 785 44 VE CVs - Volvo 1 0 14 1 0 Total 8,647 7,321 68,821 80,141 8,620 (b) Max. mass exceeding 25 tonnes Ashok Leyland Ltd 457 1,667 2,256 9,745 630 Daimler India Commercial Vehicles Pvt Ltd* 0 2 0 182 0 Kamaz Vectra Motors Ltd 0 0 0 0 0 Mahindra Navistar Automotives Ltd 0 169 0 743 0
2011
Exports For the month of February
09-10
10-11
20010
2,712 8,262 10,974
30,266 25,640 55,906
23,570 61,725 85,295
1,085 7,883 6,299 400 30,009 72,090 2,030 1,466 10,044 0 3,303 134,609
12,720 615 52,827 6,970 255,360 578,427 0 5,732 102,797 0 242 1,015,690
1 1,074 172 312 3,668 2,465 1,151 13,024 1 8,966 2,786 2 3,573 37,195
Cumulative April-February
2011
09-10
10-11
5 0 5
675 0 675
4,612 0 4,612
11,864 0 11,864
10,996 69,190 65,614 4,710 293,642 730,092 10,242 9,325 90,908 0 25,023 1,309,742
29 0 39 4 22,317 11,713 0 0 610 0 0 34,712
94 1,433 10 0 17,158 9,166 12,184 0 194 0 0 40,239
605 0 369 49 244,698 125,636 0 16 4,424 0 0 375,797
1,108 9,539 239 15 189,628 112,110 41,864 0 5,390 0 0 359,893
33 24,646 3,374 7,975 40,690 27,710 4,981 88,862 0 49,097 0 0 130 247,498
254 16,051 3,388 6,357 43,858 33,317 8,991 117,362 9 80,728 4,844 27 14,784 329,970
0 126 10 0 6 1,299 0 42 0 17 0 0 0 1,500
0 0 8 0 8 2,220 0 70 0 44 0 0 0 2,350
0 1,383 81 0 38 17,426 1,000 465 0 884 0 0 0 21,277
0 1,038 129 1 54 19,711 1,904 669 0 1,396 0 0 0 24,902
176 757 1,125 512 0 25 364 538 985 88 201 4,771
1,219 9,925 4,971 5,243 0 0 1,574 7,110 8,760 261 2,302 41,365
2,076 8,251 10,401 4,633 2 35 2,406 6,007 9,754 693 3,016 47,274
0 50 0 0 0 0 0 0 0 0 0 50
0 10 2 0 0 0 0 0 0 0 0 12
0 309 3 0 0 0 0 0 0 0 0 312
0 134 5 3 0 0 0 0 0 0 0 142
273 242 29 229 14 255 20 251 0 1,313
1,315 2,564 396 1,183 186 2,836 260 1,089 676 10,505
2,688 2,230 242 2,357 228 3,627 350 2,147 663 14,532
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 8 0 0 0 0 0 0 0 8
38 21 87 0 146 189,008
335 435 458 0 1,228 1,372,192
496 506 661 27 1,690 1,788,503
0 0 0 0 0 36,267
0 0 0 0 0 43,276
0 0 0 0 0 401,998
0 0 0 0 0 396,809
132 5 336 770 224 21 126 9,511 5 48 36 253 2,861 3,244 17,572
434 26 2,184 6,795 1,376 408 14 79,916 72 128 144 0 17,187 25,034 133,718
538 29 2,811 8,578 2,350 456 346 95,033 82 570 450 1,001 23,174 34,734 170,152
0 0 0 0 0 0 0 168 0 0 0 0 8 0 176
0 0 0 0 0 0 0 104 0 0 0 0 16 0 120
0 0 0 2 0 0 0 1,232 0 0 0 0 138 0 1,372
0 0 0 0 0 0 0 1,148 0 0 0 0 245 0 1,393
0 102 NA 4,870 151 446 2,273 7,842 25,414
0 1,958 941 48,863 3,183 4,884 22,878 82,707 216,425
0 1,285 564 57,374 4,964 4,924 24,680 93,791 263,943
0 0 0 68 3 35 0 106 282
0 0 0 83 25 6 0 114 234
0 0 38 417 57 265 0 777 2,149
0 1 0 1,263 199 361 0 1,824 3,217
739 815 0 1,237 2,791 28,205
5,173 5,867 7,601 9,407 28,048 244,473
7,450 8,585 1,457 11,166 28,658 292,601
0 0 13 0 13 295
34 0 0 0 34 268
19 5 81 149 254 2,403
38 4 54 122 218 3,435
28 310 13,536 4,434 18,308 235,521
0 0 90,450 44,565 135,015 1,751,680
204 310 146,210 46,725 193,449 2,274,553
0 0 122 0 122 36,684
0 0 166 89 255 43,799
0 0 1,212 251 1,463 405,864
0 0 1,896 242 2,138 402,382
111 0 264 312 165 852
1,024 1 1,482 4,692 1,494 8,693
1,369 0 2,746 5,032 2,026 11,173
35 0 35 114 0 184
29 0 0 107 0 136
262 0 85 348 93 788
214 0 7 684 117 1,022
1,527 0 3 1,133 18 14 2,695
13,118 157 40 14,927 197 464 28,903
16,744 14 57 13,506 130 253 30,704
275 0 0 251 0 0 526
469 0 0 245 8 2 724
1,537 0 0 2,887 45 0 4,469
4,178 0 0 4,451 61 2 8,692
29 29 3,576
81 81 37,677
235 235 42,112
0 0 710
4 4 864
0 0 5,257
13 13 9,727
245 460 2,512 2,080 5,297
1,341 3,380 18,342 14,886 37,949
2,384 3,858 22,447 20,090 48,779
42 0 114 0 156
49 0 332 60 441
368 161 1,636 513 2,678
308 178 2,345 610 3,441
1,770 4,064 407 6,241
10,125 30,897 980 42,002
14,440 35,356 2,987 52,783
297 264 4 565
213 532 57 802
2,010 3,661 764 6,435
3,876 5,380 516 9,772
2,432 603 0 77 4,641 86 0 7,839
15,564 2,617 0 0 47,185 362 13 65,741
20,155 5,315 0 247 49,853 693 12 76,275
0 0 0 0 198 0 0 198
21 0 0 0 234 0 0 255
214 0 0 0 2,522 74 0 2,810
195 0 0 0 2,303 4 0 2,502
1,583 45 0 94
1,739 0 0 0
9,001 166 0 367
0 0 0 0
0 0 0 0
5 0 0 0
0 0 0 0
1 - 15 April 2011
Auto Monitor
SIAM DATA
Category Segment/Subsegment Manufacturer.
Production For the month of February 2010
2011
Domestic Sales For the month of Cumulative February April-February
Cumulative April-February
2010
2011
09-10
45
Exports For the month of February
10-11
20010
Cumulative April-February
09-10
10-11
2011
09-10
10-11
Mercedes-Benz India Pvt Ltd 31 0 141 Tata Motors Ltd 1,861 4,810 9,993 VE CVs - Eicher 40 110 225 VE CVs - Volvo 118 64 751 Total 2,507 6,822 13,366 Total B3 11,154 14,143 82,187 II Commercial Vehicles (CVs) M&HCVs B: Goods Carriers B4: Max. Mass exceeding 16.2 tonnes-Haulage Tractor (Tractor-Semi Traller/Traller)(N3(B2)) (a) Max. Mass exceeding 16.2 tonnes but not exceeding 26.4 tonnes Ashok Leyland Ltd 0 0 0 Total 0 0 0 (b) Max. mass exceeding 26.4 tonnes but not exceeding 35.2 tonnes Ashok Leyland Ltd 302 650 2,151 Tata Motors Ltd 0 0 1 Total 302 650 2,152 (c) Mass exceeding 35.2 tonnes Ashok Leyland Ltd 310 612 1,656 Asia Motor Works Ltd 44 107 533 Mahindra Navistar Automotives Ltd 0 5 0 Tata Motors Ltd 0 0 0 VE CVs - Eicher 1 19 9 VE CVs - Volvo 2 27 12 Total 357 770 2,210 Total B4 659 1,420 4,362 Total M&HCVs (Goods Carriers) 23,071 27,645 174,078 Total M&HCVs 27,355 31,550 215,298 II Commercial Vehicles (CVs) LCVs A: Passenger Carriers A1: Max. Mass upto 5 tonnes (a): No. of seats including driver exceeding 13 (M2(A2)) Force Motors Ltd 636 666 5,046 Hindustan Motors Ltd 0 0 1 Mahindra & Mahindra Ltd 160 0 2,786 Mahindra Navistar Automotives Ltd 0 212 0 Tata Motors Ltd 440 330 3,907 Total A1 1,236 1,208 11,740 A2: Max. Mass exceeding 5 tonnes but not exceeding 7-5 tonnes (M3(A)) (b): No. of seats including driver exceeding 13 (M3(A2)) Ashok Leyland Ltd 102 64 1,006 Force Motors Ltd 8 0 137 Mahindra & Mahindra Ltd 95 0 2,039 Mahindra Navistar Automotives Ltd 0 100 0 Swaraj Mazda Ltd 185 168 1,725 Tata Motors Ltd 1,331 1,054 12,376 VE CVs - Eicher 219 365 2,029 Total 1,940 1,751 19,312 Total LCVs (Passenger Carriers) 3,176 2,959 31,052 II Commercial Vehicles (CVs) LCVs B: Goods Carriers B1: Max. Mass not exceeding 3.5 tonnes (N1) Force Motors Ltd 590 811 3,078 Hindustan Motors Ltd 33 0 222 Mahindra & Mahindra Ltd 10,067 9,487 73,218 Piaggio Vehicles Pvt.Ltd 908 755 10,191 Tata Motors Ltd 14,240 18,700 123,218 Total 25,838 29,753 209,927 B2: Max Mass exceeding 3.5 tonnes but not exceeding 5 tonnes (N2(A1)) Force Motors Ltd 120 116 1,719 Mahindra & Mahindra Ltd 179 0 1,275 Mahindra Navistar Automotives Ltd 0 0 0 Tata Motors Ltd 723 898 4,635 Total 1,022 1,014 7,629 B3: Max Mass exceeding 5 tonnes but not exceeding 7.5 tonnes (N2(A2)) Ashok Leyland Ltd 0 0 0 Force Motors Ltd 26 48 151 Mahindra & Mahindra Ltd 539 0 3,958 Mahindra Navistar Automotives Ltd 0 501 0 Swaraj Mazda Ltd 266 218 1,760 Tata Motors Ltd 2,315 2,238 21,464 VE CVs - Eicher 509 708 4,309 Total 3,655 3,713 31,642 Total LCVs (Goods Carriers) 30,515 34,480 249,198 Total LCVs 33,691 37,439 280,250 Total Commercial Vehicles 61,046 68,989 495,548 IV Two Wheelers A: Scooter/Scooterettee : Wheel size less than or equal to 12” A1: Engine Capacity less than 75cc Mahindra Two Wheelers Ltd 225 182 225 TVS Motor Company Ltd 3,008 1,576 24,205 Total 3,233 1,758 24,430 A2: Engine Capacity 75cc and above but less than 125cc Bajaj Auto Ltd 0 0 4,460 Hero Honda Motors Ltd 21,413 35,179 189,811 Honda Motorcycle & Scooter India (Pvt) Ltd 71,766 75,788 675,058 Mahindra Two Wheelers Ltd 9,892 12,826 55,040 Suzuki Motorcycle India Pvt Ltd 18,126 22,800 124,103 TVS Motor Company Ltd 23,896 41,471 257,673 Total 145,093 188,064 1,306,145 A3: Engine Capacity 125cc and above but less than 250cc Honda Motorcycle & Scooter India (Pvt) Ltd 0 0 0 LML Limited NA NA NA Mahindra Two Wheelers Ltd 0 0 832 Total 0 0 832 Total Scooter/Scooterettee 148,326 189,822 1,331,407 IV Two Wheelers B: Motor cycles/Step-Throughs : Big Wheel size more than 12” B2: Engine Capacity 75cc and above but less than 125cc Bajaj Auto Ltd 139,685 154,114 1,294,213 Hero Honda Motors Ltd 331,909 405,728 3,767,614 Honda Motorcycle & Scooter India (Pvt) Ltd 8,632 15,842 9,806 India Yamaha Motor Pvt Ltd 7,394 4,682 70,279 Mahindra Two Wheelers Ltd 0 139 0 TVS Motor Company Ltd 43,230 37,747 403,362 Total 530,850 618,252 5,545,274 B3: Engine Capacity 125cc and above but less than 250cc Bajaj Auto Ltd 96,611 134,041 961,819 Hero Honda Motors Ltd 23,457 36,473 221,826 Honda Motorcycle & Scooter India (Pvt) Ltd 44,307 48,109 446,241 India Yamaha Motor Pvt Ltd 15,762 28,689 188,793 LML Limited NA NA NA Suzuki Motorcycle & Scooter India (Pvt) Ltd 4,959 5,657 44,667 TVS Motor Company Ltd 15,199 21,252 166,814 Total 200,295 274,221 2,030,160 B4: Engine capacity 250cc and above Honda Motorcycle & Scooter India (Pvt) Ltd 0 0 0 India Yamaha Motor Pvt Ltd 0 0 0 Royal Enfield (Unit of Eicher Ltd) 4,036 5,575 48,078 Total 4,036 5,575 48,078 Total Motor Cycles/Step-Throughs 735,181 898,048 7,623,512 C: Mopeds: Engine capacity less than 75cc & with fixed transmission, big wheelsize>12” Engine Capacity<75cc Mopeds TVS Motor Company Ltd 50,142 61,334 516,549 Total 50,142 61,334 516,549 D: Electric two Wheelers Electrotherm (india)Ltd 0 NA 2,549 TVS Motor Company Ltd 0 0 18 Total 0 0 2,567 Total Two Wheelers 933,649 1,149,204 9,474,035 III Three Wheelers (CVs) A: Passenger Carriers A1:No. of seats including driver not exceeding 4 & Max.Mass not exceeding 1 tonnes Atul Auto Limited 587 1,066 4,337 Bajaj Auto Ltd 33,653 37,283 303,094 Force Motors Ltd 1 0 174 Mahindra & Mahindra Ltd 2,947 4,184 28,914 Piaggio Vehicles Pvt.Ltd 12,024 13,654 122,164 Scooters india Ltd 317 407 2,623 TVS Motor Company Ltd 2,135 3,718 12,408 Total 51,664 60,312 473,714 A2: No.of seats including Driver exceeding 4 but not exceeding 7 & Max.Mass exceeding 1.5 tonnes Force Motors Ltd 82 17 892 Mahindra & Mahindra Ltd 0 0 30 Scooters india Ltd 265 252 2,582 Total 347 269 3,504 Total Passenger Carrier 52,011 60,581 477,218 B: Goods Carriers B1: Max.mass not exceeding 1 tonnes Atul Auto Limited 695 862 6,611 Bajaj Auto Ltd 611 693 8,709 Mahindra & Mahindra Ltd 1,070 1,208 12,284 Piaggio Vehicles Pvt.Ltd 4,899 5,817 45,435 Scooters india Ltd 358 486 2,926 Total 7,633 9,066 75,965 B2: Others Force Motors Ltd 93 0 1,131 Mahindra & Mahindra Ltd 0 636 20 Piaggio Vehicles Pvt.Ltd 0 39 88 Scooters india Ltd 214 235 2,475 Total 307 910 3,714 Total Goods Carrier 7,940 9,976 79,679 Total Three Wheelers 59,951 70,557 556,897 Grand Total of all Categories 1,284,218 1,572,844 12,647,284
101 42,448 693 819 54,731 134,872
29 1,331 45 121 2,156 10,776
0 3,543 93 56 5,414 13,253
208 8,549 248 857 11,601 77,342
83 26,024 593 786 37,020 113,295
0 31 0 0 31 229
0 38 0 0 38 293
0 294 12 0 311 3,121
0 601 0 0 601 3,103
0 0
0 0
0 0
0 0
0 0
69 69
0 0
341 341
433 433
3,675 0 3,675
287 507 794
668 643 1,311
2,890 4,457 7,347
3,696 7,480 11,176
10 0 10
0 0 0
132 0 132
76 0 76
4,139 704 19 0 129 138 5,129 8,804 256,465 306,582
317 118 0 612 6 2 1,055 1,849 23,372 28,052
618 87 9 784 42 24 1,564 2,875 27,666 31,242
2,112 612 0 5,241 41 51 8,057 15,404 172,697 210,374
4,114 663 11 9,091 123 134 14,136 25,312 240,169 282,281
2 0 0 0 0 0 2 81 1,031 1,741
2 0 0 0 0 0 2 2 1,538 2,402
71 0 0 10 0 0 81 554 12,788 18,045
34 0 0 0 0 0 34 543 16,859 26,586
7,461 4 0 2,723 3,242 13,430
625 0 161 0 564 1,350
649 0 0 190 373 1,212
4,911 4 2,539 0 4,806 12,260
7,299 4 0 2,680 4,895 14,878
10 0 0 0 9 19
16 0 0 0 13 29
152 0 112 0 44 308
112 0 0 0 195 307
849 153 0 1,724 2,534 13,036 2,576 20,872 34,302
107 9 112 0 141 1,492 137 1,998 3,348
30 0 0 85 282 857 197 1,451 2,663
735 130 2,030 0 1,589 12,213 1,530 18,227 30,487
583 144 0 1,750 2,637 11,415 2,113 18,642 33,520
47 0 4 0 7 104 5 167 186
33 5 0 0 5 202 10 255 284
271 5 135 0 28 1,347 406 2,192 2,500
136 5 12 0 32 2,230 406 2,821 3,128
6,488 325 103,425 8,487 167,406 286,131
553 42 8,745 900 11,687 21,927
515 11 9,500 900 15,055 25,981
2,997 227 66,497 10,167 108,680 188,568
5,774 296 92,768 8,444 136,329 243,611
40 0 724 0 1,288 2,052
54 0 1,031 0 2,157 3,242
47 0 5,304 40 9,156 14,547
102 0 10,030 18 22,413 32,563
1,132 0 1,088 8,317 10,537
349 197 0 697 1,243
98 0 1 792 891
1,755 1,288 0 3,244 6,287
1,118 0 1,134 7,394 9,646
0 0 0 24 24
0 0 0 64 64
9 0 0 152 161
9 0 0 639 648
24 254 0 4,236 1,533 22,100 6,379 34,526 331,194 365,496 672,078
0 21 386 0 142 2,376 482 3,407 26,577 29,925 57,977
0 32 0 444 149 2,080 575 3,280 30,152 32,815 64,057
0 132 2,988 0 1,523 21,611 3,399 29,653 224,508 254,995 465,369
1 226 0 4,009 1,146 19,722 4,517 29,621 282,878 316,398 598,679
0 0 133 0 0 170 14 317 2,393 2,579 4,320
0 16 26 0 42 231 118 433 3,739 4,023 6,425
0 2 946 0 468 1,990 584 3,990 18,698 21,198 39,243
0 20 251 0 454 3,119 1,049 4,893 38,104 41,232 67,818
10,676 17,311 27,987
100 2,025 2,125
798 1,546 2,344
100 22,319 22,419
9,140 19,391 28,531
0 0 0
0 0 0
0 0 0
0 0 0
0 322,884 826,538 148,262 209,065 410,068 1,916,817
87 22,641 69,828 9,210 18,012 23,954 143,732
0 33,025 78,747 11,838 22,937 36,569 183,116
3,698 184,890 662,039 56,850 123,567 249,701 1,280,745
27 307,259 813,250 135,964 209,038 387,737 1,853,275
0 560 774 240 1 1,038 2,613
0 1,904 1,034 88 44 2,220 5,290
1,092 5,048 10,615 1,347 146 8,938 27,186
0 16,242 12,560 1,514 144 16,481 46,941
0 NA 653 653 1,945,457
0 NA 0 0 145,857
0 NA 0 0 185,460
290 NA 305 595 1,303,759
0 NA 858 858 1,882,664
0 NA 0 0 2,613
0 NA 0 0 5,290
0 NA 133 133 27,319
0 NA 0 0 46,941
1,660,018 4,252,036 175,508 64,782 8,507 546,303 6,707,154
100,046 326,034 7,474 4,724 0 34,685 472,963
95,951 395,265 11,809 3,991 46 35,651 542,713
824,991 3,698,558 8,186 57,982 0 323,021 4,912,738
1,049,932 4,154,191 153,279 63,007 5,181 432,510 5,858,100
43,316 8,457 3 1,852 0 9,379 63,007
58,436 6,298 4,550 864 0 11,146 81,294
497,904 75,234 23 7,499 0 81,439 662,099
601,207 93,732 24,547 8,248 0 95,486 823,220
1,437,080 318,329 503,388 262,059 NA 45,592 230,964 2,797,412
75,679 23,712 37,852 12,400 NA 4,774 11,362 165,779
109,194 34,663 42,206 19,380 NA 5,624 16,999 228,066
761,993 213,743 384,664 147,434 NA 43,367 123,054 1,674,255
1,144,590 303,479 447,611 188,701 NA 45,031 142,060 2,271,472
15,582 692 6,357 6,781 NA 224 7,968 37,604
23,076 900 7,367 8,798 NA 132 7,666 47,939
177,129 8,019 61,329 48,028 NA 1,891 49,167 345,563
316,922 11,689 57,201 76,297 NA 588 87,133 549,830
0 0 51,074 51,074 9,555,640
0 7 3,670 3,677 642,419
0 13 5,259 5,272 776,051
6 25 45,729 45,760 6,632,753
0 54 48,523 48,577 8,178,149
0 0 415 415 101,026
0 0 296 296 129,529
0 0 1,829 1,829 1,009,491
0 0 2,196 2,196 1,375,246
639,132 639,132
49,377 49,377
60,761 60,761
511,574 511,574
633,259 633,259
756 756
642 642
5,803 5,803
5,970 5,970
0 0 0 12,140,229
0 0 0 837,653
NA 0 0 1,022,272
2,482 229 2,711 8,450,797
0 0 0 10,694,072
0 0 0 104,395
NA 0 0 135,461
50 0 50 1,042,663
0 0 0 1,428,157
9,558 395,188 0 40,510 144,137 3,666 35,685 628,744
646 13,017 1 2,617 11,456 331 1,756 29,824
1,021 18,618 4 3,802 12,993 446 1,850 38,734
4,201 151,923 149 27,543 118,634 2,611 11,340 316,401
9,331 184,118 10 38,727 129,279 3,691 20,847 386,003
18 18,744 0 204 472 0 336 19,774
16 20,921 0 141 1,595 0 2,362 25,035
29 149,839 0 429 4,105 0 1,198 155,600
232 215,531 0 2,109 15,663 0 14,586 248,121
101 2,629 2,613 5,343 634,087
22 20 247 289 30,113
0 262 311 573 39,307
294 254 2,445 2,993 319,394
26 2,392 2,496 4,914 390,917
42 0 0 42 19,816
0 0 0 0 25,035
560 0 0 560 156,160
84 0 0 84 248,205
7,800 4,077 10,911 56,455 4,247 83,490
727 2,207 1,002 4,827 389 9,152
871 678 1,026 5,749 562 8,886
6,585 9,830 12,250 45,578 2,899 77,142
7,830 3,712 10,676 55,668 4,189 82,075
12 0 0 14 0 26
0 0 26 24 0 50
28 0 157 259 0 444
6 174 237 853 0 1,270
15 4,676 147 2,115 6,953 90,443 724,530 16,215,502
78 2 0 227 307 9,459 39,572 1,130,037
0 635 0 254 889 9,775 49,082 1,370,932
1,104 19 0 2,382 3,505 80,647 400,041 11,067,887
106 4,578 0 2,199 6,883 88,958 479,875 14,047,179
0 0 0 0 0 26 19,842 165,241
0 0 30 0 30 80 25,115 210,800
9 0 90 0 99 543 156,703 1,644,473
0 0 138 0 138 1,408 249,613 2,147,970
46
Auto Monitor
THE OTHER SIDE
Getting Personal
1 - 15 April 2011
In Person
With President & Chief Executive Officer, Achates Power, David Johnson
If not in the auto industry, where would you be? Before I was lucky enough to be offered the opportunity to join Ford Motor Company 20 years ago, I considered several options including staying in school, delving into aviation or going into the family business, that is, selling and servicing Ford cars and trucks. What car do you drive? What do you dream of driving? I’m driving a 2009 Volkswagen Jetta TDI with 6-speed manual transmission. It is a joy to drive and very clean, quiet and efficient. As you might imagine, I look forward to driving a car powered by an Achates Power engine with even dramatically improved efficiency, lower cost and still fun to drive. Your most recent indulgence… I bought a Nikon digital SLR. I have been coveting one for many years and fi nally gave in... What are you currently reading? I recently enjoyed reading “Do Androids Dream of Electric Sheep” by Philip K. Dick. The book was the annual reading project selection for Cornell University, my alma mater. Once I fi nished reading it, I made sure to buy and watch the movie it inspired, Blade Runner. What is Mr Johnson doing when not talking auto? I’ve been in the auto industry for over 20 years so it’s unusual to fi nd me in a conversation unrelated to the auto business; nevertheless, other topics I commonly enjoy are business, economics and policy. Outside of these, I love to enjoy dinner with my wife and teenagers and to listen to what’s going on in their world. Outdoor activity you would miss office for… Late last year, my family and I enjoyed skiing and snow-boarding California’s Mammoth Mountain which had just received 15 feet of snow. Where did you go for your last holiday? Our last holiday was spent in Sedona, Arizona. It may have been this trip that really pushed me to fi nally purchase the Nikon. It is quite captivating there. You get angry when… I’m not sure angry is the best descriptor but, I dislike inaction and am a strong opponent of the phrase, “it can’t be done.”
Illustration: Sachin Pandit
Best thing to have happened to you… My family is the best thing that’s happened to me. No question. I am very lucky in so many ways, but especially because of my fabulous family.
David Johnson joined Achates Power, Inc. in August 2008 as president and CEO. Johnson is utilizing his 20 years of industry experience to accelerate development of revolutionary internal combustion engines that provide superior fuel efficiency at lower cost and, ultimately further the company’s goal of enabling a more sustainable future. He is responsible for technical, commercial and business development as well as sales, financials and operations. Johnson also serves as a member of the Achates Power board of directors. Johnson was previously vice president of product operations for military and export markets at Navistar. As program manager for the MaxxPro™ line of AP) vehicles, he Mine-Resistant, Ambush-Protected (MRAP) delivered the vehicles in record time and record quantan to better tities for deployment in Iraq and Afghanistan protect U.S. soldiers. or General Prior to Navistar, Johnson worked for M, he was Motors and Ford Motor Company. At GM, program manager and chief engineer forr multiple clean-diesel engine programs for Opel, Saab and Renault passenger vehicles. At Ford Motorr Company, nch of the Johnson led the development and launch esel SuperDuty, equipped with an all-new diesel engine. This remains the highest volume diesel-powered pickup truck on the market. Johnson earned a Master of Business Administration and a Bachelor of Science in Mechanical Engineering from Cornell University.
An experience I won’t forget… An unforgettable experience that immediately comes to mind is the fortunate opportunity I had to lead the development, production start-up and fielding of Navistar’s MaxxPro line of Mine Resistant, Ambush-Protected (MRAP) vehicles. The vehicles were designed for the U.S. military to use in Iraq and Afghanistan. In less than a year, we progressed from proposal to production and deployed record quantities in record time and, in so doing, saved the lives of some of the brave men and women in our military. As USA Today reported in June 2008, roadside bomb attacks and fatalities were down almost 90% partially due to these vehicles. This project was certainly unforgettable and incredibly rewarding on several levels.
Regn. No. MH/MR/WEST/20/2009-2011. RNI No. MAHENG/2000/11414 WPP Licence No: MR/Tech/WPP-269/WEST/09-11 Licenced to post without pre-payment at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001. Date Of Mailing: 1st & 2nd Fortnightly Issue. Date Of Publication: 28th of Every Month
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