Auto Monitor - 1-15 December 2010 by Infomedia18

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

Auto Monitor Vol. 10 No. 22

w w w. a u to m o n i to r. co . i n

1-15 December 2010

INTERVIEW VOLVO BUSES LIKELY TO INTRODUCE ARTICULATED BUSES IN INDIA NEXT YEAR Akash Passey, Managing Director, Volvo Buses India

40 Pages

` 50/-

AUTOPINION DEAL TRENDS IN CROSS BORDER M&A – NAVIGATING Pg 14 AUCTIONS

Pg 08

Lines up investment of `36 crore in three years NEWS IN BRIEF

Roots Industries inks JV with Russian horn maker Avtocom Shobha Mathur Chennai

SkodaAuto India launches Yeti SUV Skoda Auto India recently launched its fi rst sports utility vehicle (SUV), Yeti, in the country, priced at `15.40-16.62 lakh (ex-showroom, New Delhi). The SUV has been launched in two variants – Ambiente and Elegance – and is powered by a 2.0-litre TDI CR (common rail diesel) engine. The Czech carmaker has reported a booking of about a 1,000 units for its new offering which will be brought into the country as CKD (completely knocked-down) units, assembled at its Aurangabad plant. The SUV delivers a maximum power of 140 bhp at 4200 rpm, and offers a mileage of 17.67 km per litre.

DATA MONITOR Domestic Top 5 PV-makers Sector

Oct-09

Oct-10

Change

MSIL

71,551

107,555

50.32%

HMIL

28,301

34,725

22.70%

TML

24,781

29,053

17.24%

M&M^

13,114

16,061

22.47%

GMI

7,385

10,006

35.49%

Domestic Top 5 2W-maker Sector

Oct-09

Oct-10

Change

HHML

344,768

491,356

42.52%

BAL

179,404

239,936

33.74%

TVS

118,299

173,771

46.89%

HMSI

53,418

140,059

162.19%

IYM

26,879

31,791

18.27%

Domestic Top 5 CV-makers Sector

Oct-09

Oct-10

Change

TML

26,204

29,754

13.55%

M&M

6,892

9,108

32.15%

ALL

4,934

4,628

-6.20%

VECV Eicher

2,024

3,070

51.68%

FML

752

1,572

109.04%

* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL

oimbatore-based Roots Industries (RIL) has entered into an equal joint venture with the largest electrical horn manufacturer in Russia, Avtocom. The JV company – Roots Avtocom – in Lyskovo, Russia would produce electrical horns for OEMs in Russia. T he Memora ndu m of Understanding with Avtocom for the Russian project was inked in July this year. Roots Industries is the largest manufacturer of electrical horns in India and holds a high ranking globally. The joint venture would invest `14 crore in the new company over a three-year period, with `7 crore to be invested initially. To start with, electrical horns would be supplied to German carmaker Volkswagen (VW) for the Polo compact, customised for the requirements of the Russian market. VW is also in the midst of setting up a manufacturing facility in Russia that would become operational by

April 2011, at around the same time as the Roots Avtocom JV goes on stream. For the Volkswagen Polo, pre-production trials have been undertaken at the Roots factory in Coimbatore. The prototypes are currently under approval stage by VW. The fi nal clearance for the product is to be received from VW just before commencement of production in Russia. Chairman, RIL, K Ramasamy told Auto Monitor that the JV company would also supply electrical horns to other car manufacturers in the Russian market including French major Renault and Japanese carmaker Toyota, who builds the Camry sedan at its St Petersburg plant in Russia.

in 2010. Korean carmaker Hyundai, meanwhile, has completed construction of its fi rst plant in Russia that would commence production in 2011 with the compact sedan RBr. RIL is also a supplier to Toyota in India and is supplying a disc-based electrical horn for the carmaker’s latest entry-level sedan, Etios. ‘There is a lot of potential in the growing automotive market in Russia that will increase both our top lines and sales,’ confi rmed Ramasamy.

Contd. on P33

Banking On Russia Recently, there was news of Toyota planning a second plant in Russia to accelerate its business activity in the country. Renault though, was the fi rst car company to start assembling foreign-made vehicles in Russia, starting with the Logan sedan in 2005 and the Sandero hatchback

K Ramasamy, Chairman, Roots Industries

M&M sign acquisition agreement with Ssangyong Our Bureau Mumbai

tlility vehicle major, Mahindra & Mahindra (M&M) recently signed an agreement in Seoul, South Korea to acquire Ssangyong Motor (SYMC). The total cost of 70 percent stake acquisition in Ssangyong for M&M is around $463 million (`2,123 crore) with $378 million (`1,733.31 crore) in new stocks and $85 million (`389.76 crore) in bonds. As part of the agreement, SYMC will continue to function as an independent entity with a Korean management. The labour union

Contd. on P22

BMW Plant Chennai hits 10,000 mark

VS Parthasarathy, Group CIO and EVP, M&A and Finance, M&M, Yoo-il Lee, Joint Receiver, SYMC, Pawan Goenka, President, Automotive and Farm Equipment Sector, M&M and Young-tae Park, Joint Receiver, SYMC

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MW India recently rolled out the 10,000th car from its Chennai-based plant, which the luxury car maker had opened on 29 March, 2007. The plant produces the BMW 3 Series and 5 Series sedans in petrol and diesel variants. By end of 2010, the plant – which has a capacity to produce 5,400 units per year on a single shift basis – will also start producing the BMW X1. Meanwhile, the company plans to scale up its investments in India to `180 crore by 2012-end. Till September this year, BMW had invested `110 crore in India, a company statement said.

CONTENTS CORPORATE Nissan considering SKD operations for Teana sedan

Three-wheelers, commercial vehicles lead exports growth in FY11

Bosch to expand its aftermarket spark plug range

Nissan is studying the feasibility of initiating semi-knocked down operations for its luxury sedan Teana in India by mid next year

Vehicle exports registered encouraging performance this fiscal lead by 95.3 percent growth in exports of three-wheelers during April-October FY11

Riding on the success of its platinum iridium spark plugs, Bosch is already working on combinations of a new range of spark plugs it plans to introduce in the Indian market

Kalyani Hayes kicks-off car wheels facility

Kalyani Hayes Lemmerz passenger car steel wheel facility will have initial capacity of two million units set up at a cost of `70 crore and will be extended to four million units in two years

Anand Group targets `9,000 cr revenues by FY14

Anand Group is aiming for a turnover of `9,000 crore by 2014 and is chalking out a capital expenditure plan of `1,400 crore

‘Natural gas emerging as a viable alternative fuel for transportation’

Participants at the NGV India exhibition sought policies and framework aimed at further promotion of CNG for public & private transportation and expansion of CNG refill infrastructure

Incentive scheme announced for propping-up EVs

Electric vehicle manufacturers received a booster dose in the form of an incentive scheme covering all vehicle segments from the Union Ministry of New & Renewable Energy

GLOBAL WATCH Renault seeks job cuts in France to offset production decline

Auto bailout saved more than 1.4 million jobs

NHTSA probes rental car recall repairs

Ford reduces its debt by $1.9 billion

Renault is seeking an early-retirement agreement with unions in response to declining domestic demand and production

US government bailout of GM, Chrysler and other automotive firms saved more than 1.4 million jobs according to the Center for Automotive Research

National Highway Traffic Safety Administration has opened an investigation into how quickly rental car companies fix recalled vehicles

Ford expects to end the year with more cash than debt after converting $1.9 billion in debt to new common stock that will be issued before the end of the year

THE OTHER SIDE

INTERVIEW

12 08

Claude d’Gama Rose, Managing Director, Continental Automotive Components (India)

‘Electric bus will help in making electric vehicles popular’

Formerly with Siemens VDO before its merger with Continental, d’Gama Rose was closely associated with the transformation of the company from a mechanical instrumentation company to a full-blown automotive electronics company

Chief of Operations, Mahindra Reva, R Chandramouli says that financial incentives by the Government and the company’s pricing strategy will help the ‘green car become the people’s car’

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Auto Monitor

Marketing & Sales Associate Vice President: Sudhanva Jategaonkar Sales Co-Ordinator: Akshata Rane

Auto Monitor

1 - 15 December 2010

CORPORATE

Nissan considering SKD operations for Teana sedan Shobha Mathur Chennai

issan Motor India (NMIPL), the Indian subsidiary of Japanese carmaker, Nissan Motor, is studying the feasibility of initiating semi-knocked down (SKD) operations for its luxury sedan, Teana, in India by mid-next year. This is likely to have a significant bearing on the car’s pricing, as customers pay huge import duties on CBU (completely built units) imports. W hen asked, Managing Director and CEO, NMIPL, Kiminobu Tokuyama said the

company is studying the possibility of introducing the Teana in a SKD form in due course. Sources in the know, however, said SKD operations are likely to be started by the middle of 2011. The sedan is expected to be assembled at the Oragadam plant of the Renault Nissan Alliance, near Chennai. At present, NMIPL imports the Teana, the X-trail SUV and its sports car 370Z in CBU form into India. Reacting to a question, Automotive Practice Leader, PricewaterhouseCoopers India, Abdul Majeed said that foreign manufacturers in India who were

duction set up in the country so that a proper aftermarket service and spare part availability is ensured that may not be possible with imported vehicles,’ Majeed pointed out.

Heavy Duties importing luxury cars in CBU form did so only in the initial phase when volumes did not justify their assemblies locally. Once sustained volumes were possible, manufacturers preferred to scale up operations in the local country by localising components of the SKD or CKD cars.

Nissan Micra Diesel in December NMIPL is gearing up to offer the diesel version of Micra in December and bookings have already commenced across Nissan dealerships in the country. The diesel version of Micra comes with fuel economy of 23.08 kmpl (as approved by ARAI). The Micra Diesel is powered with a 1.5 litre Common Rail Direct Injection K9K Diesel engine, which is mounted for the very fi rst time in India on Nissan’s

versatile ‘V’ platform. Micra Diesel will also be exported to South Africa by next year. The vehicle will be available in two variants of XV and XV (premium) in six colour options – sunlight orange, brick red, pacific blue, storm white, blade silver and onyx black. The company has sold over 5,000 units of Micra till November 25 this year.

‘To achieve cost efficiencies, a manufacturer will have to localise parts, and for that he has to have a strong supplier base locally. More importantly, today, currency movements are huge, so the OEM also runs a risk in importing from a foreign country,’ he added. Moreover, India has a large automobile market and assembly operations could enable OEMs to further spike up their presence in the country by reaching out to more customers with a lower car price. ‘No foreign OEM can grow in the Indian market by depending on imports. In terms of sentiments also, people will prefer to buy from a manufacturer who has a pro-

Government rules governing Indian customs duty sanction import of vehicles in CBU, SKD and CKD (completely knocked down) state into the country. According to the Central Board of Excise and Customs, Government of India, a basic customs duty of 60 percent is enforced on motor cars with an engine of over 1,500 cc. The latest edition of the Teana sedan sports a 2,500 cc V6 petrol engine with the car costing around `25 lakh. Import duties also include a countervailing duty of 20 percent plus Rs 15,000 per unit to protect the domestic industry from subsidised imports by the exporter, an automobile cess of 0.125 percent, an education cess of around three percent and additional duty of four percent. Besides, a national calamity contingency duty of one percent ensures that the total duty structure spills over 100 percent on the vehicle. In comparison, the CKD attracts a basic customs duty of just about 10 percent and even after addition of various duties just about totals around 25 percent. ‘There is no separate customs duty for automotives imported in SKD form into India but all vehicles coming into the country in a knocked down condition and not in CBU form attract a basic customs duty of 10 percent,’ said an official from the Society of Indian Automobile Manufacturers (SIAM). Hence, the SKD car draws a similar import duty of around 25 percent that is enforced on a CKD and that is considerably lower than that enforced on a CBU – one of the reasons why Nissan is keen to bring the Teana in SKD form and pass the benefit of a slashed price tag to the customer. According to a recent sales statement released by NMIPL, the Teana showed a slight dip in September sales to 18 units from 21 in the corresponding period last year. However, Tokuyama told Auto Monitor that the Teana had been gaining in popularity in India and therefore the need to tap the market further with a competitive pricing. The Oragadam plant of the Renault Nissan Alliance currently produces the petrol version of the compact Nissan Micra and would soon start rolling out its diesel version. ‘The diesel engine will be exclusive for the domestic market and very fuel-efficient. But there are no plans to export the diesel car at the moment. Globally, the

Contd. on P31

Corrigendum In our issue dated 15-31 October, 2010, the story titled ‘Bosch lines up aggressive portfolio for two-wheeler segment’ erroneously stated that Bosch supplies ESP for 2W segment. There is no ESP solution available for two-wheelers in the market currently from any supplier. We regret the error.

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Auto Monitor

1 - 15 December 2010

INTERVIEW Swedish major bags inter-city bus orders from Bangladesh, Sri Lanka

Volvo Buses likely to introduce articulated buses in India next year Volvo Buses India (VBIL), the Indian arm of the Swedish major, Volvo Bus, is deliberating the introduction of articulated buses in the city segment, among many others, in 2011. Articulated buses, which can essentially bend in the middle, are marketed by Volvo in various countries globally. Articulated buses can seat a larger number of passengers compared to the regular single-decker buses. They comprise two rigid parts linked together by a pivoting joint and are usually of single-deck. Compared to a regular city bus that can seat around 50 people, an articulated city bus can accommodate up to 150 people. One of the other key plans at VBIL is to start production of its CNG city bus platform by mid-next year. In a recent chat with Auto Monitor, Managing Director, VBIL, Akash Passey talked about the company’s plans to usher in new technologies, consolidate its bus centres and extend its soft service bouquet besides reaching out to export markets. Excerpts: Shobha Mathur What are your product plans for the next year? Every year, we add a couple of products. Now, we see the need for articulated buses in the city and inter-city segment, wherein specifications for engines and transmissions will move further up. The focus will be on bringing in large buses into India, including double-decker buses. Articulated buses can carry up to 150 people and are beneficial for the operator, especially in peak hours. Moreover, there is scope for further application of electronics and computers in Volvo buses in India. The environmental roadmap in the country will also be moving much faster over the next three to five years, when the need for hybrid buses will be felt. Demand for hybrid buses already exists in the developed markets. Commercially, Volvo is selling hybrid buses globally that result in a 30 percent fuel saving in Europe for the fleet operator. What are VBIL’s plans for ramping up capacity and scaling up manpower strength at its Bangalore plant as it adds new products to its bus portfolio? In terms of manpower

strength, we added 250 to 300 people in the organisation this calendar year as business volumes grew. Now, we have 1,000 plus employees and plan to add another couple of hundreds in the coming two to three quarters. We are regularly ramping up plant capacity and the plant has been built to accommodate a capacity of 1,000 buses per annum. We are running at around 600 units as of now. We will also produce CNG buses soon and will make regular investments that I cannot quantify now as we are still fi rming up plans. We showcased our CNG bus at the Auto Expo 2010, and are productionising the same, within the next one year. We are currently in discussions with State Transport Undertakings of Uttar Pradesh, Mumbai and Delhi and mass production of the CNG buses should start by middle of next year. Regarding investments, VBIL had invested `100 crore at the time of setting up its Bangalore plant, but it has now reached the stage, when big amounts need to be further invested. So, it is very clear that investments will follow. What have been the growth

drivers for Volvo Buses? The Indian Government’s Jawaharlal Nehru National Urban Renewal Mission (JNNURM) generated business for us during the slowdown last year. This year, the market has shifted from a city bus dominated one to a coach dominated one that means inter-city and long distance coaches. We held a 76 percent marketshare in the inter-city luxury coach segment last year. However, during the last couple of years, the coach market has been down. That tide has turned around now and this year most of our business has come from the inter-city segment from private players. This is a very healthy sign that the economy is growing. For Volvo, the key change has been the drive of its multi-axle buses into India. Even the coach buses that were 12 metres, have now changed to 13.7 or 14 metre multi-axle buses. While the customer profi le is the same, their requirement for the products has evolved from a normal 4x2 bus to a multi-axle 6x2 bus. We are a country where 70 percent of the population travels by buses so when a multi-axle bus can seat more people it translates into higher occupancy levels and higher revenue and improved profitability for the operator, though he may have to shell out more for the multi-axle bus. Volvo has diesel buses for long distance travel, while CNG is focused on the city segment and that is how it will continue for the next three to five years. However, from an environment perspective, emission standards are important and today, it is possible to achieve better emissions even with diesel. Over the last 15 years, diesel technology has evolved and is 30 percent more fuel-efficient than a gas-run bus. Globally, we are moving to Euro VI, while in India 13 cities have moved to Euro IV with the enforcement of the new emission norms. We are ready with the Euro IV roadmap and will implement

Akash Passey, Managing Director, Volvo Buses India

the new emission norms as they unfold over the next four years. What will be your focus from here on? Our key focus is on maintaining our leadership position, expanding in both the city and inter-city segment, hooking up our bus centres, improving our soft services for customers and expanding training for drivers and fleet operators. So far, we have trained 10,000 drivers in India at our training facility in Bangalore. Besides, we offer refresher sub training programmes in different parts of the country. Training of people in areas such as welding and painting however, require more focus. Mostly, we offer ‘on the job’ training. This necessitates need to improve the training process, so that over the next five years,

another 15,000 to 20,000 personnel can be trained. Today, electronics in buses is a start-up business in India, but we plan to build up our software along with the hardware systems in future. It’s not only about bolts, nuts and bearings now but the industry is slowly graduating towards a computer-based system in public transport systems. In terms of localisation content, Volvo buses in the country have a 45 percent localisation level. While bus bodies are completely localised, the driveline is still made from global aggregates. Driveline volumes don’t justify localisation but Volvo Eicher is investing in a new engine plant, so VBIL could look at that. Recently, Volvo Buses India commenced the bus centre concept in India and is upgrading its service and aftermarket facilities at bus centres in Delhi, Bangalore and Hyderabad. Chennai and Mumbai will also have new bus centres. The bus centre will be a one-stop shop not only for service facilities but also for soft services like consultancy services, mobility systems and customer built solutions for fleet operators. We have already conducted a pilot with Bangalore Metropolitan Transport Corporation on a small basis and it has been quite well received. Our aim is to get closer to the customers and become a complete solutions provider. This will give us an edge in providing comprehensive fleet maintenance, so customers are left to manage their business. We are the fi rst to introduce it in the commercial vehicle industry. Workshop and full contract business and soft sales in the future will account for nearly 50 percent of our revenues in India. Are your export plans on track? The bus industry is manpower-oriented and manpower costs

Contd. on P22

EDITORIAL Small cars, bigger segment B

y the time this copy of Auto Monitor reaches you, you would be witness to yet another automobile launch in India. Come 1 December, the largest carmaker in the world, Toyota Motor, would introduce a new product into the Indian market, created for the Indian market – the entry level sedan, Etios. The company has thoughtfully designed the logo to reflect Indianness, with the ‘i’ in Etios resembling a ceremonial tilak! No manufacturer globally can afford to miss the Indian small car market. Although present in the Indian market for over a decade each, both Toyota and Honda – hitherto not present in the A or B segments of the industry – are just about getting ready with their small car offerings. The Etios hatchback is scheduled for an India launch in the fi rst quarter of 2011, while Honda too is likely to introduce its small car in the latter half of 2011. Starting with the Auto Expo in January this year, carmakers have introduced several new products in the small car segment that have significantly raised bars in the fiercely competitive market. While consumers have benefitted immensely in terms of options available, the small car pie in the growing Indian automobile market has also been steadily increasing. Interestingly, it was during 2010 that the country’s largest carmaker, Maruti Suzuki India, for the fi rst time saw its share in the

Indian market dip below 50 percent. For a company that is dependent on the success of its small cars, it has vowed to get back the 50 percent share. This year, MSIL launched new avatars of two of its most successful compact cars – the WagonR and Alto with the popular 1-litre K-series engines. MSIL also launched a new minivan, Eeco, replacing the Versa. The company’s strategy seems to have worked in its favour with all the products registering record numbers. With regards the small car, the other company that has made good progress with its India strategy is Japanese carmaker, Nissan Motor India. After ensuring a successful launch of the petrol version of the Micra compact car, the Chennai-based manufacturer is all set to launch the diesel variant of the car. On the other end, Volkswagen too has been reporting good sales of its Polo hatchback. Till end-October, the company had sold over 14,000 Polo compacts in India. With a rapidly increasing distribution network, both Nissan Motor India and VW India are likely to garner a sizeable share of the Indian small car market. It is also important to note the success of the American manufacturers – Ford India and General Motors India – in the small car segment. In December last year, GM India introduced the Chevy Beat – a product that has helped the company stay ahead of Ford

India in the overall passenger vehicle segment. Ford India, on its part, launched its highly successful small car, Figo, in March this year. This new Ford product has been able to gain a significant mind space among the Indian consumers. Among other carmakers, Fiat’s push with the Punto has not quite met the desired results, while SkodaAuto’s Fabia and Honda Siel’s Jazz have not set the charts on fi re. Hyundai Motor India had no new launches this year, but it introduced an upgraded i10 in October. The next year looks exciting as Toyota and Honda enters the small car segment. The brand value that both these companies command in India should hold them both in good stead. It will be interesting to see how MSIL goes about retaining its 50 percent share in the market. It would also be exciting to watch Nissan and VW take on established names in the compact car segment.

Deepangshu Dev Sarmah deepangshud.sarmah@infomedia18.in

IMAGE of the fortnight

FORTNIGHT’S QUOTES ‘If the availability of CNG in India is increased, vehicle manufacturers will make CNG-compatible vehicles. The Government will provide all necessary support’ Jitin Prasada, Minister of State for Petroleum and Natural Gas

‘I think we have now turned the corner on products, and that is an important piece of the puzzle’ Sergio Marchionne, CEO, Chrysler and Fiat on Chrysler model range

‘We’re still stuck in a situation, where credit is not flowing normally, and the recession that began in the US is spreading across the globe’ Carlos Ghosn, Chief Executive Officer, Nissan and Renault

Auto Monitor Editorial Team Editor: Deepangshu Dev Sarmah Features Editor: Shobha Mathur Principal Correspondent: Abhishek Parekh Senior Correspondent: Nabeel A Khan Correspondent: Shambhavi Anand Contributing Editors: Sirish Chandran Bertrand D’Souza

‘General Motors is playing a strong role in the future of green cars’ Daniel Akerson, Chief Executive Officer, GM

‘The recently announced incentives for electric vehicles will double the sales of electric two-wheelers in India’ Sohinder Singh Gill, President, Society of Manufacturers of Electric Vehicles (SMEV)

Design & Photography Chief Photographer: Mexy Xavier Asst. Art Director: Varuna Naik Senior Designer: Ganesh Patere Scanning & Colour Correction: Ravikumar Potdar, Ravi Salian, Sanjay Shelar Production Team: Dnyaneshwar Goythale, Vikas Bobhate, Pravin Koyande Photographer: Mohd Nasir (New Delhi), Neha Mithbawkar, Joshua Navalkar

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Volvo gets XC60 to India Best selling ‘small premium utility vehicle’ for Volvo Cars globally, the XC60, was recently launched in the Indian market. Volvo Auto India, the Indian unit, plans to deliver 45 units of the new vehicle in January next year. The XC60 has been priced at `39.5 lakh (ex-showroom, Delhi). The company will import the vehicle as completely built units from Volvo’s manufacturing facility at Ghent in Belgium. Managing Director, Volvo Auto India, Paul de Voijs said, ‘We have already received lot of pre-bookings for the XC60 and it bears testimony to the faith our customers have for the Volvo brand.’ The XC60 will be competing with BMW’s X3 and Audi’s Q5, he said. Last year, the company sold 140 units of its premium offerings in India – SUV XC90 and luxury sedan S80 – and hopes to do ‘slightly better’ this year as compared to 2009. The company also plans to expand its dealership network to nine by the end of this year from the current seven. Three to four additional dealerships should come up by next year, de Voijs said.

Auto Monitor

INTERVIEW

1 - 15 December 2010

‘Electric bus will help in making electric vehicles popular’ The Reva electric car manufactured in Bangalore by Mahindra Reva Electric (MREC) is geared up to become popular among the masses. Financial incentives by the Government and the company’s pricing strategy will help the ‘green car become the people’s car’, said Chief of Operations, Mahindra Reva, R Chandramouli in a recent interaction with Auto Monitor. Excerpts:

that. On the supply chain side, our association with Mahindra & Mahindra will help improve things. More importantly, there should be more options and we are working towards bringing out new variants. To help the segment grow, other manufacturers too should make efforts at getting into the EV segment. Something like an electric bus will help in making the concept familiar in order to sell more.

Shambhavi Anand How do you plan to make Reva more popular among the masses? There are three things needed to make any car a car for the masses. More people should have access to it so that they are able to feel, see and touch it. Secondly, it should be affordable in terms of price and the third, one should

have more choices. To begin with, we are showcasing the Reva at Mahindra dealerships. With distribution improving, people will have more access, and will be able to touch and feel the car. We are working on getting the pricing of the product right. As economy of scale grows, we will be able to achieve

R Chandramouli, Chief of Operations, Mahindra Reva

Which cities do you think Reva will sell the most? Currently it is Bangalore. Delhi is also a big city for Reva. Pune is also coming up in a big way because I saw people were very conscious and aware of the environment. Kerala is a major destination for us – the State has banned plastic and is equally conscious. Jaipur is another important place. Whichever place has tourism they become little conscious because tourists are demanding awareness. Electric vehicles will fi nd positive response from such places. Give us an update on your production capacities. Our current plant in Bangalore produces around 100 cars every month. Our new plant is also coming up in Bangalore. Power in the new plant is generated by solar energy and it has natural ventilation, rainwater harvesting, and green building. According to the Indian Green Building Society, it will be either of gold or platinum rank. We are planning to complete it by next year. Its capacity will be 30,000 cars. Which new overseas market will you target? We are already very strong in Europe and get a lot of support from the Government there. In Asia, recently Malaysia reduced import tax on electric vehicles. In the last couple of weeks, we have had a lot of inquiries from there. So we will have to evaluate that. China is one of the largest auto markets and given the huge demand for eco-friendly vehicles it could generate in future, we would like to take our new cars into that market as well. What is your pricing strategy? We have tied up with Mahindra Finance, which will enable us to offer customers a unique fi nancing plan. Revai buyers can now pay an interest-free, refundable deposit of `100,000 followed by monthly instalments of `8,401 for a period of 36 months and drive home a Revai. At the end of three years, the customer can either continue the car by making a fi nal payment of `50,000 or return the car and claim the refundable deposit of `100,000. What kind of help do you get from the Government? World over, governments are becoming conscious and giving subsidies on EVs. The Delhi Government gives a subsidy of 29.5 percent on EVs, while the Rajasthan Government helps with VAT and road tax. We also have an alliance with BSES, who will help us in setting up charging points.

20 - 26 January 2011 Bangalore, India

15th Indian Metal-Cutting Machine Tool Exhibition With International Participation

at s u Visit 2011 X E T M I

Auto Monitor

1 - 15 December 2010

AUTOPINION

Deal trends in cross border M&A â&#x20AC;&#x201C; navigating auctions W

John Hadley Partner, Price Waterhouse & Co

Koushik J Partner, Price Waterhouse & Co

ith the global economy limping back to normalcy from the meltdown-induced lows of 2008 and early 2009, the discernible trend in the present day market for cross border automotive mergers and acquisitions is the return of the auction process. This development suggests an enlarged buyer universe driven by the return of private equity buyers and strategic buyers buoyed by increase in global light vehicle assembly volumes. The economic climate for the most part of 2009 heavily favoured deals that were fuelled by the desire to restructure and this is being slowly rebalanced

with increased enthusiasm and expectations on the part of sellers and buyers prompting the return of auctions. As Indian mid-market companies continue to extend their global footprint, traversing markets in Europe and the US in search of acquisition targets, it is critical to be prepared for the eventual process through which transactions are achieved. Experience of emerging market mid-market companies looking for acquisitions in the Western markets suggests a perceptible discomfort with auction processes as emerging market buyers tend to be more comfortable with an exclusive deal process as

this process usually comes with a longer period of exclusivity and an opportunity to complete a more detailed due diligence. Further it tends to suit their decision making style, which is consensus driven and which can take longer. Given that auction processes require key strategic decisions, including those on price being made under tight deadlines, emerging market buyers, thanks to limited exposure to the process, tend to be pipped at the fi nish line more often than not. This factor influences western vendorsâ&#x20AC;&#x2122; perception of emerging market buyers as credible participants in an auction process.

Exhibit at the prospering manufacturing hub of Automobiles & Auto Components

DIE & MOULD - SOUTH INTERNATIONAL EXHIBITION

The return of the auction process suggests an enlarged buyer universe driven by the return of private equity buyers and strategic buyers buoyed by increase in global light vehicle assembly volumes

It is therefore imperative as an acquirer to be prepared for such a process as forgoing auctions means losing out on significant amount of opportunities. Presented below are some guiding principles on dealing with auctions:

Anticipate and prepare for the opportunity Auction processes are not launched without warning. Most often than not, private equity owners begin the process at least six months before a formal launch by testing the appetite of prospective bidders. So, it is important to have a clear and focused strategy to shortlist opportunities and the approach for each individual opportunity. This would mean that efforts should be taken to work preemptive approaches even while being prepared should the approach result in a decision by the seller to launch a formal auction. An important element of any preparation is fi nancial preparedness to deliver a credible offer and hence conversations with fi nancing partners at the very outset are critical.

Outline your strategic rationale clearly

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SOUTH A p r i l 7 1 0 , 2 0 1 1 C h e n n a i T r a d e C e n t r e , C h e n n a i Exhibit Range: * Dies & Moulds, Press Tools * Die Casting machine/moulding machine * Mould base and standard parts of Dies & Moulds * Machine Tools for making Dies & Moulds, C.N.C Milling/Machining centre, E.D.M. Etc.

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Hot Runner Systems * Tool Steel Accessories for Machine Tools * Cutting Tools Heat Treatment * Texturizing * Gauges Die/mould polishing machines CAD/CAM system related to Dies & Moulds Rapid Prototyping & Modeling * Digitizing

It is important that your strategic intentions in pursuing the opportunity are clearly articulated to the vendor, least you are perceived as an opportunistic buyer. In addition, communication of your decision making structure along with an indication of the time you require to complete the deal is important. The interest levels of the vendor and their advisors are typically directed towards buyers, who are perceived as credible, and hence the right perception by the other vendor about the nature of your interest is important.

Give yourself a fair chance to evaluate the business closely Invitations to subsequent rounds of the process and opportunities to examine the business

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1 - 15 December 2010

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Three-wheelers, commercial vehicles lead exports growth in FY11 Nabeel A Khan New Delhi

he cumulative export of three-wheelers in the period of April-October FY11 has gone up by 95.30 percent compared to the corresponding period a year ago, according to the latest data released by Society of Indian Automobile Manufacturers (SIAM). The overall cumulative vehicle exports grew by 41.44 percent to touch 1,369,544 units compared to 968,272 units in the same period last fi scal. Three-wheeler manufacturers exported 156,756 units of threewheelers including passenger carriers and goods carriers in April-October FY11 compared to 80,264 units in April-October in FY10. The export of vehicles in this segment in the last one decade has gone up nearly ten times. According to Automotive Mission Plan 2006-16, manufacturers exported 16,263 units of three-wheelers in 2000-2001, which grew to touch 156,756 units in April-October FY11. The three-wheelers export recorded a growth of 12 percent in October FY11 compared to September while commercial vehicles increased 34 percent. Three-wheeler goods carrier has maintained a substantial growth of 64 percent in October while passenger carrier went up by 12 percent. The production of threewheelers went up from 326,075 units in April-October 2009 to 449,838 units in April-October

Monthly Export (3W and CVs) Segment

April

May

June

July

August

September

October

Total

Three-Wheeler Passenger Carriers

27,229

19,838

20,187

21,764

21,368

21,456

23,949

155,791

Three-Wheeler Goods Carriers

239

225

124

138

965

LCV

2,451

3,197

3,120

3,636

3,405

3,543

4,945

24,297

M&HCV

1,437

1,685

2,299

2,071

2,800

2,498

3,180

15,970

Total

31,192

24,800

25,845

27,696

27,697

27,581

32,212

197,023

FY11. In the three-wheelers category, which reported a growth of 95.3 percent in exports, growth in exports was led by goods carrier, growing by 225 percent to touch 955 units in this period coampred to 293 units in the same period last fi scal while passenger carrier has gone up by 94.82 percent to touch 155,801 units compared to 79,971 units in the same period last fi scal. In this period the total production of goods carrier in three-wheelers segment increased by 10.35 percent to touch 53,835 units. In July-September FY11, the export of three-wheelers dipped by four percent compared to the previous quarter. In April-June period, three-wheeler manufacturers exported 67,648 units which came down to 65,021 units in July-September.

CVs In Fast Lane The cumulative export of commercial vehicles recorded a growth of 89.2 percent this fi scal compared to the corresponding period in the previous fi scal. In April-October FY10, the export of commercial vehicles stood at 21,283 units which grew to 40,267 units in April-October

Export trend in Q1FY11 and Q2FY11 (3W and CVs) Segment

Apr-Jun 2010

Jul-Sep 2010

Change (%)

Three-Wheeler Passenger Carriers

67,254

64,588

-3.96

Three-Wheeler Goods Carriers

394

433

9.9

LCV

8,768

10,584

20.71

M&HCV

5,421

7,369

35.93

Total

81,837

82,974

1.39

FY11. The production of commercial vehicle rose to 401,645 units from 281,306 units in the same period. In the commercial vehicle segment, the Light Commercial Vehicles (LCV) and Medium and Heavy Commercial Vehicles (M&HCVs) exports grew by 139.95 percent and 47.15 percent respectively in October FY11, compared to same period in 2009. A total of 24,297 units of LCVs were exported between April and October FY11 compared to 10,430 units in April-October FY10. The cumulative export of M&HCVs reached at 15,970 units in October 2010 from 10,430 units a year ago. In the said period, the production of M&HCVs and LCVs grew by 57.57 and 32.22 percent respectively. The export of passenger car-

riers in M&HCV segment grew by 104.63 percent to touch 5,836 units this fi scal while the goods carrier registered a moderate 26.66 percent growth to touch 10,134 units this fi scal compared to 8,001 units in the corresponding period last fi scal. Commercial vehicles export was buoyant in July-September FY11 with a growth of 27 percent compared to April-June quarter. In July-September FY11 17,953 units were exported in this segment compared to 14,189 units in the previous quarter. In second quarter this fi scal 2,726 units of M&HCV passenger carriers were exported in comparison with 1,890 units in April-July quarter. In the same segment the export of goods carrier touched 4,643 from 3,531 units in the previous quarter. The export

of M&HCV passenger carrier in June stood at 834 units and slipped to 643 units in July. The segment regained its momentum in August with exports of 379 units of LCV passenger vehicles and 1,052 units of M&HCV passenger vehicles.

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CORPORATE

1 - 15 December 2010

Bosch to expand its aftermarket spark plug range Shobha Mathur Chennai

iding on the success of its latest offering of platinum iridium spark plugs for the two-wheeler aftermarket, Bosch is already working on combinations of a new range of spark plugs it plans to introduce in the Indian market. Spark plugs are likely to be tuned to suit different engines, ranging from variations in gap size between electrodes, changes in metal composition and substitution of two electrodes with four to boost electric charge. Also on the drawing board is a complete iridium spark plug sans a combi-

nation of platinum. ‘The iridium spark plug will have different properties but similar advantages to the platinum iridium spark plug. Our manufacturing and design strategy is to develop spark plugs for every kind of engine,’ explained Vice President, Automotive Aftermarket, Bosch, S Muralidharan. With growing variations and range of spark plugs, the company is also taking stock of its existing production capacity at its Bangalore plant. Muralidharan confi rmed that Bosch was targeting a capacity of over one lakh spark plugs per day and was expanding in every segment of

the product. The company has a target of crossing the 30 million units annually from the 18 million per annum mark and a limited range in its product portfolio a couple of years ago. The current year is expected to close at around 30 million units. Elaborating on the latest platinum iridium spark plug, he remarked, ‘we dominate the market as we are the category creator of the product in India. These spark plugs facilitate easier cold cranking in the morning, when temperatures

S Muralidharan, VP, Automotive Aftermarket, Bosch

are lower and a bike is kick started or an electric starter is switched on. This is when you require something more than an ordinary spark plug.’ Bosch’s plat i nu m iridium spark plug for twowheelers has a very fi ne diameter of 0.6 mm making it one of the smallest in the market working on the premise that the lower the diameter, the higher is the efficiency of the plug. The plugs’ outer shell is nickel-plated enabling easy screw-in and screwout of the spark plug from the vehicle. Competing spark plugs are mostly manufactured using zincplated shells. Additionally, these spark plugs differ from the ordinary ones in that its tip is made of combination of platinum and iridium, while the most existing ones in the market have copper tips. Hence, platinum iridium spark plugs do not result in any kind of carbon deposit, thereby almost eliminating any clean up for better cranking.

Not Mass Market The platinum iridium spark plugs have not been designed as a mass-market product by Bosch despite positive response from customers exceeding company’s expectations, clarified Muralidharan. While expressing inability to quantify the sales volumes, he said that platinum iridium spark plugs were likely to constitute about 10 percent of the company’s spark plug business. The aftermarket division of Bosch launched platinum iridium spark plugs for two-wheelers across 10 cities and has also commenced exports of plugs for both two-wheeler and four-wheeler applications to the ASEAN countries. The company plans to cash-in on the booming twowheeler market in India as well as the ASEAN countries, where 100 cc and 200 cc bikes and scooters are dominated by Japanese manufacturers Honda and Suzuki, with similarities in Indian and Japanese components. Bosch is more focused on marketing its platinum iridium spark plugs in the two-wheeler segment than for passenger cars, as according to Muralidharan, car owners can afford to pay for an even more expensive and higher quality full platinum spark plug. With engine quality paring up to meet more stringent emission norms and new generation vehicles high on quality quotient, spark plugs with different combination of metals are expected to be used in engines for shoring up vehicle performance, going forward. The company had introduced the fusion spark plug for the four-wheeler aftermarket in India last year. Its product range now comprises the Super Plus plug with four electrodes, the Platinum Plus comprising single electrode and providing 15 to 20 percent more service life than regular spark plugs and the Fusion spark plug with four electrodes with a maximum service life of 100,000 km.

1 - 15 December 2010

CORPORATE

Auto Monitor

Kalyani Hayes kicks-off car wheels facility, to expand to four million units in two years Our Bureau Mumbai

alyani Hayes Lemmerz, a joint venture between Hayes Lemmerz International and the Kalyani group, recently inaugurated their passenger car steel wheel facility in Pune. The passenger car wheel facility is likely to have annual capacity of two million units set up with an investment of around `70 crore. ‘The capacity will be raised to four million units over the next couple of years as there is a buffer capapcity of just 300,000 wheels, which is clearly inadequate to serve the growth plans of passenger car OEMs,’ said a company official. He further added that priority of the JV would be to serve local demand from passenger car manufacturers for 13- to 17-inch wheels and any sourcing for Hayez Lemmerz is not currently on the agenda but could be considered when capacity is doubled to four million from the current level. The passenger vehicle production and sales is likely to touch around five million units over the next four to five years based on current growth projection by major OEMs as well as the Society of Indian Automobile Manufacturers (SIAM). The company has already booked around 1.7 million units for major domestic and international passenger car OEMs including FIAT, Tata Motors, M&M, Volkswagen India, Volkswagen US, VolkswagenMexico, Volkswagen-China, Ford

Anand Group targets `9,000 cr revenues by FY14 Our Bureau New Delhi

nand Group is expecting to register a turnover of `9,000 crore by 2014, which is more than double its existing revenue. During the same period, it plans to make a capital expenditure of `1,400 crore to aid its organic growth process alone, Chief Executive Officer, Deepak Chopra said. With 14 joint ventures and eight technical licenses, the investments will be mainly in Gabriel India, Spicer India and Mahle Filter Systems India, in the form of debt as well as equity. Though the Group does not have elaborate plans for inorganic expansion owing to its JV pattern of growth, acquisition of one of its partners, Faurecia, is in pipeline, said Chopra. The CEO also said that the group wants to focus more on the domestic market rather than targeting the overseas market because it foresees more growth in the domestic environment rather than overseas. The group would also hire around 5,000 employees by 2014, growing its workforce to 13,000 people from 8,000 right now.

turer, catering to India and Renault both the steel and Nissan India. alloy wheel sectors Ka lyani Hayes headquartered Lemmerz has been in Nor t hv i l le, present in India Michigan and has since 1996 in the 17 manufacturing commercial vehilocations globalcle steel wheels ly. Kalyani Hayes segment and servLemmerz began ing major domestic its operations in OEMs including Tata 1996 with a facility Motors, Volvo Eicher for manufacturing CV, Volvo, Mercedes, one million comSw a r a z , Isu z u, mercial vehicle Mahindra Navistar, Prakash Kodlikeri, MD, KHL, Curtis Clawson, Chairman, Hayes Lemmerz, Baba Kalyani, Chairman, BFL, Fred Bentley, COO & President, Global Wheel wheel rims with and KAMAZ along- Group, Hayes Lemmerz, Pieter Klinkers, President, Hayes Lemmerz f irst customer with global OEMs being Tata Motors for its trucks located in the same premises as such as Daimler, Volvo and Iveco and buses. the CV facility. with a capacity of one million The company received techHayes Lemmerz International units per annum. The company’s nological back-up from Hayes is a leading wheel manufacpassenger car wheels facility is

Lemmerz Werke, Germany. It forayed into export segment by developing tubeless wheel rims for the East Asian markets, particularly Korea and Taiwan. It has since developed specialised wheel rims for commercial vehicle manufacturers like Daimler Benz, Germany; Volvo Trucks, Sweden and Iveco, Spain. The Company extended its product range from 16- to 24-inch wheels. In the domestic market, Kalyani Hayes Lemmerz has developed passenger car wheels for Fiat’s Punto and Linea, Volkswagen Polo and Tata Sumo and Tatamobile. The Company also supplies to Volkswagen in the US, Mexico and China.

Auto Monitor

1 - 15 December 2010

CORPORATE

‘Natural gas emerging as a viable alternative fuel for transportation’ Our Bureau Mumbai

ndia, the fi fth largest market by volumes for Compressed Natural Gas (CNG)-powered vehicles, is also one of the fastest growing markets for such vehicles globally. Policies and framework aimed at further promotion of CNG for public transport as well as private vehicles as well as expanding the CNG refi ll infrastructure should be taken up on priority basis, according to prominent participants at the recently held NGV India 2010 conference titled ‘Meeting the Demands of India’s Surging NGV Growth’ in Mumbai. Nearly 200 companies from around 25 countries participated in the two-day exhibition with more than 5,000 industry delegates expected to attend the conference. Speaking at the inaugural session, Minister of State for Petroleum and Natural Gas,

Jitin Prasada said the country would soon see CNG-driven two-wheelers on the roads. ‘This along with CNG driven taxis and three-wheelers would create a revolution on our roads to provide affordable, comfortable travel to the middle class, the office workers and factory employees,’ the Minister said. Prasada further informed that the Government has already sanctioned 6,335 km of pipeline and the Petroleum & Natural Gas Regulatory Board (PNGRB) is in the process of authorising another 5,000 km of pipelines to connect various parts of the country. A list of 201 cities in India has been drawn out by the Government, where Pipelines Natural Gas (PNG) and Compressed Natural Gas (CNG) facilities would be rolled out in the coming years. PNGRB has already held two rounds of bids in the last few months, where proposals from interested parties were invit-

Jitin Prasada, Union MoS for Petroleum and Natural Gas inaugurating the NGV India exhibition in the presence of BC Tripathi, CMD, GAIL (India) and Bhure Lal, Chairman, Environmental Pollution Control Authority; CNG-powered motorcycles at the Sagas stall

ed for 16 cities. The Minister stressed that the public sector companies, as well as the private ones, have to bid on an equal footing to win the bid for any particular city, a statement by the Ministry said. According to Chairman and Managing Director, GAIL India, BC Tripathi, the requirement for natural gas is forecast to grow at more than 10 percent annually to over 300 standard million cubic metres per day. The NGV India 2010, already in its second edition, is hoping to be a regional platform for the Indian natural gas industry and beyond to explore the latest developments and

exchange ideas on the emerging technologies and processes. ‘The use of natural gas vehicles in India is ranked fi fth in the world and is growing at a rate of 45 percent per annum against a global range of around 30 percent. The country thus provides the gas industry with high potential for growth with 230 cities set for conversion,’ said Managing Director, Bangkok Exhibition Services, David Aitken. Equipment makers including Landi Renzo, Endress + Hauser, Atlas Copco, Sandvik and Tomasetto Achille, displayed their latest systems and technologies at the show. The

conference programme included keynote, plenary and technical sessions addressing the future of NGV, focusing on vehicle supply, supply chain and safety. Among the new technologies introduced at the show include CNG powered two-wheelers. Several new and fi rst time participants at the show also helped raise the appeal of the show as an international event for natural gas industry. NGV India 2010 provides an international platform for the Indian natural gas and allied vehicle industry to explore the latest developments, and exchange ideas on the emerging technologies.

Incentive scheme announced for propping-up EVs Our Bureau Mumbai

lectric vehicle manufacturers recently received a booster dose in the form of an incentive scheme from the Union Ministry of New & Renewable Energy (MNRE). The scheme envisages incentives of up to 20 percent on the ex factory prices of the vehicles, subject to a maximum limit. The cap on the incentive will be `4,000 for low speed electric two-wheelers, `5,000 for high speed electric two-wheelers and `100,000 for an electric car.

The subsidies come with some eligibility riders, including one where electric vehicles must have at least 30 percent indigenous content, a siginifcant sales and after-sale service outlets and a multipoint check system foraccounting the real retail sale. The scheme will be operational for the remaining part of the current fiscal FY11 and will continue through the FY12. ‘We need to get more clarity on the applicability of various vehicles for this scheme as some of the aspects like vehicle speed in case two-wheelers are not very clear. But this is one of the

more comprehensive nationwide scheme, which will be very positive for the segment,’ said Chief, Technology & Strategy, Mahindra Reva, Chetan Maini. Di rector, Societ y of Manufacturers of Electric Vehicles (SMEV) and Chief Executive Officer, Hero Electric, Sohinder Singh Gill said that the incentive scheme will act like a lifesaving drug for the EV industry, ‘which is almost in the Intensive Care Unit (ICU) with stagnation in growth over the last one year’. It will be particularly beneficial for the electric two-wheeler and small car category because these are the only two segments where the products are available, he said. Manufacturers point out that incentive schemes have helped in generating customer demand for electric vehicles. Delhi serves as an example, where a similar incentive scheme has led to a healthy growth in volumes with more than 40,000 electric scooters on Delhi roads. SMEV is now actively pursuing with the Government for working on a National Electric Vehicle Policy that will have far reaching positive impact and implications on the Indian transport sector. Society of Manufacturers of Electric Vehicles (SMEV) is the registered representative body of the Indian electric vehicle manufacturers, which has been formed in order to provide a common platform for promotion, development and advancement of interest of key stakeholders contributing to the growth of the Indian electric vehicle industry. SMEV constitutes of 34 members from the electric vehicles manufacturing and components industry, which manufactures electrically operated vehicles and its parts and accessories.

Auto Monitor

1 - 15 December 2010

CORPORATE

Volvo Buses likely to introduce... Contd. from P8 have a lower base in Asian countries compared to global economies, so it is but natural that over a period of time, we move our focus to exports in order to become cost competitive. Exports had taken a back seat during the recession period but the planning and process has been put into place and we will be exporting starting 2011. Exports will start with small volumes because customer requirements in each country are different and some have a much higher specification level than what is prevalent in the Indian bus industry, though our product is global in nature. In fact, 25 percent of our volumes will come from exports over the next four years. We plan to tap the South Asian markets like Bangladesh and Sri

Lanka, from where Volvo Buses has already picked up orders for coaches, multi-axle 6x2 buses as well as for 12 metre inter-city buses with higher specifications and different transmissions, more soph ist icated i nter iors sporting a different seating profi le. Exports to South Africa will also commence from next year. We have commenced studies in the Middle East and other South East Asian countries and plan to export between 25 and 50 units in 2011. We will be looking at better realisations of 5-15 percent in all these markets compared to the domestic market. Volvo has been present in the African market for the last forty years as a chassis supplier. Our profi le will now be chang-

Mature markets are fairly well segmented in terms of inter-city, city, tourist coach, luxury coach. That is absent in India at present and will occur over the next five to seven years ing to a complete bus supplier. VBIL is cost competitive and India has a good trading relationship with Africa so it is but natural to look at exporting to South Africa from India. With the India-Europe FTA round the corner, do you foresee exports from India being profit-

able for VBIL? I think they will be profitable in terms of labour hours. In India, the labour cost is 30 percent less compared to Europe, so it will be labour hours versus the transport cost. Logistically, if we procure a good transport solution, then Asia – particularly India – could turn into an export hub. However, Europe and other developed markets are not easy to penetrate, so it will be a very long learning curve before you can even move to the specification levels of those markets. Also, mature markets are fairly well segmented in terms of inter-city, city, tourist & luxury coaches. That is absent in India at present. Here, we talk in terms of complete volumes. This

segmentation will occur in India over the next five to seven years, when technology levels will also face an uptick in terms of larger engines and better driveline technology. In the developed market, a coach is in a much higher segment than an intercity bus. How is the bus scenario evolving in India? The bus scenario in India has changed at a slow pace as initially the two-wheeler and then the passenger car segment underwent changes. If the infrastructure growth in the country grows commensurately, then over the next four years, the Indian city bus segment will experience a growth of around 25 to 30 percent and the coach segment will grow at 10 to 15 percent.

M&M sign acquisition... Contd. from P1 of SYMC, M&M and SYMC have also signed a tripartite agreement with provisions for employment protection, long-term investment and commitment for no labour dispute. The defi nitive agreement contains information related to securing outside investment, the establishment of principal management, repayment of rehabilitation claims to protect the interests of creditors and establishing a foothold for SYMC normalisation. Additionally, the definitive agreement also encapsulates terms and conditions related to the process of acquiring new stock and corporate bonds, down payment and deposit guidelines, repayment of rehabilitation claims, employment guarantees and other covenants. SYMC has been undergoing a corporate rehabilitation process since February 2009 and the court receivership will conclude upon court approval and the termination of corporate rehabilitation process. M&M has already deposited 10 percent of the fi nal purchasing price per terms of the defi nitive agreement with the remaining balance to be deposited three days prior to SYMC’s stakeholder meeting. The Korean automaker will update its corporate rehabilitation plan to include reference to repaying liabilities with cash-in from the deal and will be required to receive approval from creditors and the court on the updated plan. After completing all the acquisition procedures and the repayment of rehabilitation claims, the corporate rehabilitation process is likely to be fi nished by March, 2011. SYMC, which manufactures Rexton, Kyron, and Korando SUVs as well as luxury passenger car, the Chairman, was put into receivership in January 2009, after the comany recorded losses of $75.42 million. The global economic criss and shrinking demand for its products was blamed for the company’s dipping fortunes. M&M was selected the preferred bidder over five rivals in August last year by Ssangyong’s creditors. The Indian automaker expects the deal to be completed by March 2011.

Auto Monitor

ANALYSIS

Cumulative passenger car sales grew by 34.29 percent in 2010-11 to touch 1,105,273 units as compared with 823,049 units in the previous fiscal. Utility Vehicle (UV) sales grew by 21.85 percent in FY11 to touch 183,825 units compared with 150,866 units notched up in the previous fiscal. Multi Purpose Vehicle (MPV) sales increased by 50.45 percent in FY11 to touch 119,377 units compared with 79,349 units in the previous fiscal. Volkwagen India registered highest growth rate in the passenger vehicle segment with 3786.21 percent to 4,508 units as compared with 116 units in the same period in the previous fiscal. PC

Cumulative Light Commercial Vehicle (LCV) sales grew by 26.25 percent in the April-September period of FY11 to touch 190,672 units as compared with 151,032 units sold in the same period in the previous fiscal. Medium & Heavy Commercial Vehicle (M&HCV) sales grew by 53.19 percent in FY11 to touch 173,003 units compared with 112,931 units notched up in the previous fiscal. Three-wheeler sales increased by 20.74 percent in FY11 to touch 299,131 units as compared with 247,738 units in the previous fiscal. Hindustan Motors notched up the highest growth rate in the LCV with 90.7 percent gain to touch 246 units this fiscal as compared with 129 units in the previous fiscal. Asia Motor Works notched up highest gain in M&HCV segment with 110.92 percent growth to touch 3,419 units as compared to 1,621 units in the corresponding part of the previous fiscal.

OEMs

2009-10

2010-11

BMW

1,749

3,171

Fiat

15,114

13,933

Ford

16,620

55,110

31,571

50,221

59.07%

4,606

4,864

5.60%

HSCI

34,275

35,110

2.44%

HMIL

172,452

206,832

19.94%

3,302

4,948

49.85%

423,275

533,653

26.08%

3,032

67.33%

MSIL Merc

1,812

Two-Wheelers

Commercial Vehicles

Passenger Vehicles

1 - 15 December 2010

81.30%

LCVs (PC+GC) OEMs

-7.81% 231.59%

ALL

2009-10

2010-11

403

404

5,410

9,285

129

246

M&M

42,332

56,136

MNAL

6,658

Piaggio

6,160

5,571

Swaraj

1,957

2,281

16.56%

Tata

91,683

105,864

15.47%

Force

0.25% 71.63% 90.70%

32.61% 0.00% -9.56%

scooter/scooterettee

3786.21% Nissan

116

4,508

Skoda

9,454

10,165

Tata

100,423

VECV - Eicher 7.52%

5,463

6,219

Audi

1,095

1,892

1,722

20,451

823,049

1,105,273

Total

151,032

4,227

42.90% 26.25%

190,672

13.84%

M&HCVs (PC+GC)

72.79%

OEMs

2009-10

2010-11

1087.63%

2009-10

2010-11

BAL

3,202

HHML

111,811

176,950

HMSI

384,369

520,466

M&M 2W

22,758

89,379

SMIL

66,550

121,493

TVS

175,953

254,812

44.82%

Total

764,643

1,163,127

52.11%

-99.16%

58.26% 35.41% 292.74%

82.56%

91.96% ALL

Total

2,958

OEMs

50.53%

151,164

TKM

In the April-September period of FY11 cumulative Scooter/ Scooterette sales grew to 1,163,127 units, from FY10 figure of 764,643 units, a growth of around 52.11 percent. Motorcycles/StepThrough sales increased from 4,132,838 units in FY10 to touch 5,190,740 units in FY11, a growth of around 25.60 percent. Moped/Electric Scooter sales increased from 322,918 units registered in FY10 to 400,266 units in FY11, a growth of around 23.95 percent. Mahindra & Mahindra 2W notched up the highest growth rate in scooters segment this fiscal with more than 292.74 percent increase in volumes from 22,758 units in FY10 to 89,379 units in FY11. It was followed by Suzuki Motorcycles with 82.56 percent growth to touch 121,493 units as compared with 66,550 units in the previous fiscal. HMSI notched up highest growth rate in motorcycles segment with 70.51 percent increase from 230,572 units in FY10 to 393,151 units this fiscal. It was closely followed by Bajaj Auto with a growth of 55.87 percent this fiscal from 923,012 units to touch 1,438,707 units. TVS Motors registered the highest growth rate in mopeds/electric scooters segment with around 24.91 percent increase in volumes from 320,436 units in FY10 to 400,266 units in FY11.

23,923

45,923

34.29%

110.92% AMW

1,621

3,419

JCBL

Daimler*

0.00%

MNAL

0.00%

-39.13%

UV OEMs BMW Force

2009-10 340 3,173

2010-11 256

-24.71%

4,678

Ford

1,047

1,818

8,474

11,589

889

1,617

HSCI

155

336

Merc Benz

47.43%

Swaraj

73.64%

Tata

36.76% 81.89% 116.77% 516.67%

HMIL ICML

12 695

74 428

M&M

86,544

96,335

MSIL

2,323

4,229

Merc

274

Nissan

300

110

2,877

4,011

73,338 10,222

VECV - Volvo

491

514

Volvo Buses

326

285

Total

112,931

173,003

OEMs

2009-10

2010-11 55.87%

BAL

-24.55%

39.42%

102,539

VECV - Eicher

Motorcycles/StepThrough

39.82%

16,080

57.31%

923,012

1,438,707

HHML

2,487,259

2,769,469

HMSI

230,572

393,151

IYM

140,047

157,127

2,664

29,999

28,235

SMIL

28,662

24,159

11.35% 70.51%

M&M 2W

12.20% -5.88%

4.68% -12.58%

-15.71%

-38.42%

53.19%

TVS

293,287

28.62%

377,228

11.31% 25.60%

Total 4,132,838 5,190,740 82.05% 380.70% 222.58%

Tata

19,400

23,845

22.91%

TKM

27,664

38,046

37.53%

Total

150,866

183,825

21.85%

3 Wheelers (PC+GC)

Mopeds/Electric

OEMs

2009-10

2010-11

Atul

5,972

10,339

Bajaj

101,989

119,370

OEMs 73.12%

965

137

M&M

24,882

34,075

Piaggio

101,760

113,531

Scooters

6,076

7,345

TVS

6,094

14,334

Total

247,738

299,131

2010-11 24.91%

TVS

320,436

400,266

2,482

322,918

400,266

17.04% Electrotherm*

-85.80% Force

2009-10

0.00% 23.95%

MPV OEMs Force

2009-10 0

2010-11 68

0.00% 72.53%

Maruti Tata

52,451

90,496

26,898

28,813

79,349

119,377

7.12% 50.45%

Total

36.95% 11.57% 20.89% 135.21%

20.74%

* Data not available since August 2008 onwards

ANNIVERSARY

January 2011

A decade in perspective As the automobile industry ends the year on an exciting note and looks forward to an eventful year ahead, Auto Monitor has been at the forefront and completes 10 years in existence. On this Anniversary we look back to an eventful decade and look through the prism for clues to unfold events which are likely to shape the automotive sector in the next decade and beyondâ&#x20AC;Ś Be a part of this historic journey, this January! To know more: call 022 3003 4651 or write to us at: b2b@infomedia18.in

~ Advertorial ~

Forging new partnerships: How OEMs suppliers and LSPs will raise quality, speed & efﬁciency Automotive Logistics (AL) India 2010 will bring together the country’s carmakers and Tier suppliers with the LSPs, systems and infrastructure providers who face the daily challenges of their market. It will also attract logistics experts from around the world to provide insight for logistics and supply chain management in India. The third annual event will be held at the Le Royal Méridien Hotel Chennai from 8 – 10 December, 2010. An opening cocktail reception will be followed by two days of high-level presentations and a gala dinner, giving many opportunities for networking. Building on the success of the previous conference, the third AL event in India, that was held in Pune in November 2009, the event will feature 30 speakers, with over 200 delegates expected to attend.

Challenges and solutions Demand continues to increase in the country’s home market, while OEMs simultaneously look to grow their exports. So they face the supply chain challenges of raising production while working towards global quality standards. In a recent interview with Automotive Logistics magazine, Kalpesh Pathak, the assistantvicepresidentofcorporate supply chain for Fiat India Automobiles, said: “Focus is required in the areas of packaging improvements, standardisation across suppliers and OEMs, hassle-free movement of goods across the country, efficient methods of tax recovery and improving the skill and knowledge level of the logistics industry professionals.” R.S. Kalsi, Executive Officer (SPD, SND and Logistics) of Maruti Suzuki will give an exclusive analysis of how the logistics infrastructure is developing in India

In addition, the balance of responsibility for logistics and supply chain operations is constantly shifting; finding the right balance between OEM and LSP-led management is a major concern to all players in the market. Andreas Ginkel, Director of Logistics,GM International Operations will speak on how GM’s global logistics activities mesh with its operations in India

All of these requirements and more are the theme of the Automotive Logistics India 2010 conference. The meeting is a vital forum for building the right partnership between OEMs and logistics vendors, in both inbound and outbound, with the goal of achieving world-class quality logistics. The conference will bring together domestic, transplant and joint venture OEMs, and the principal tier suppliers, with both Indian as well as global logistic providers. Overall, delegates will benefit from: – The presence of the most senior OEM executives responsible for logistics and supply chain operations – Expert speakers from OEMs, tier suppliers and logistics service providers – Inter nat iona l ex per t ise

from global supply chain professionals – Networking and contacts that are unrivalled across India’s automotive logistics sector – Special round table discussion sessions – ask senior OEM and supplier executives those tough questions, up close and personally

Speakers confirmed for the upcoming event include: Q Q Q Q Q Q Q Q Q Q Q Q

Anand Venkateswaran, General Manager Sales Logistics, Hyundai India Motor Andreas Ginkel, Director of Logistics, General Motors International Operations and Asia Amlan Bose, General Manager of Material, Planning and Logistics, Ford Asia Pacific R.S. Kalsi, Executive Officer (SPD, SND and Logistics), Maruti Suzuki India Nil Madhab, Deputy General Manager of Supply, Chrysler India Prem Verma, Chief Executive Officer, Tata Kalpesh Pathak, Assistant Vice President of Corporate Supply Chain, Fiat India S.K. Krishnan, Vice President of Demand Chain Management, Mahindra and Mahindra Auto Sector Rashy Todd, Managing Director, Audi Dealership Sudhir Gupta, Executive Vice President of Supply Chain Management, TATA Autocomp Systems Hitesh Thakkar, India Logistics Manager and AP Process Manager, Delphi Pirojshaw Sarkari, Chief Executive Officer, Mahindra Logistics

For a full speaker list, visit: http://www.automotivelogisticsindia.com/Speakers/

A report of last year’s event in Pune Market boom, but where are the 3PLs? PUNE 2-4 December 2009: As delegates assembled in Pune,

India’s car sales figures for November were released – and they made startling reading. Growth is back in India: market leader Maruti Suzuki saw sales jump 60% over the same month in 2008 (though only 17% up on 2007); Tata Fiat was up 55%; Hyundai up 93%; GM up 65%; and Mahindra more than doubled

at 102%. The figures confi rm that late 2008 was just a brief pause in the upward trajectory of car production and sales. But logistics is groaning under the strain. Both speakers and del-

egates lamented the low cost/low investment logistics model that exists in the automotive sector in India. OEMs called for a significant increase in the low level of involvement from sophisticated 3PLs.

~ Advertorial ~

AMS India conference: Vehicle maker experts meet in Chennai Automotive Manufacturing Solutions is looking forward to hosting the third AMS India conference, to be held from December 6 – 9 at the spectacular Le Royal Méridien Chennai. Centred on the theme: ‘Quality up: Cost down’, the conference will be one of the largest single gatherings of both Indian and international automotive manufacturing executives, each of which will have travelled to India in order to uncover new techniques and technologies to further improve fi nished vehicle quality while still reducing overall production costs. Chennai, the capital of Tamil Nadu state and India’s fourth largest city, has a broad technology base that includes a swath of automotive investment. International OEMs such as Hyundai, Renault-Nissan, BMW and Ford have large production facilities located around the city, while there is a substantial supplier base in the region. In all,

Chennai lends itself to a discussion on improved efficiencies within automotive production.

Responding to market growth The Society of Indian Automobile Ma nufacturers (SIAM) reported that in July this year, the Indian new car market achieved record monthly sales of almost 160,000 units – a 38% yearon-year increase. Contributing factors to this growth were cited as recent increases in per capita income and the availability of low-cost loans. Over the past year, carmakers have also played a key role in driving the market, introducing a wide range of new models, including the Ford Figo and third-generation Nissan Micra. Now SIAM predicts that by the fi rst quarter of 2011 sales will increase a further 13%, a figure that some industry analysts say is a conservative estimate. Generally speaking, car buyers in India prefer not to wait for their

new cars, which means that vehicles of the desired specification must be available for immediate delivery. This requires every outlet to stock a wide selection of cars fitted with a choice of popular equipment packs. If the right car is not available, it could not only mean the loss of a single sale but, considering the population’s brand loyalty, multiple future sales as well. In addition to this, car buyers in India – and in the surrounding regions that take delivery of Indian-made vehicles Ford India’s President and MD Michael Boneham will give delegates an insight into the carmaker’s plans for future vehicle and engine production in India

– are keenly aware of what they want in terms of fi nished vehicle quality. The market pull created by this demand presents new chal-

lenges to all carmakers based in India. While companies may benefit from increased economies of scale in terms of part purchasing and cost-per-unit reductions, production speed must be increased to deliver sufficient vehicle quantities – while still retaining (or even improving) overall vehicle quality. Alternatively, where maximum capacity has already been achieved, such as in the case of Maruti Suzuki, a new greenfield facility must be constructed to service the growing market. This is the core of what speakers at the upcoming AMS India conference will be looking to address, with OEMs offering their individual perspectives of how to increase output without affecting quality, while technology and equipment suppliers will highlight what they can provide to improve production efficiencies in order to increase the capacity of a given plant. The conference will bring together domestic, transplant

and JV OEMs, and the principal Tier suppliers, with the providers of all the technologies which make up vehicle manufacture and assembly. Attendance is at the VP/production director and plant management level, and will be from within India and other key automotive production regions.

Subject matter will cover: O

O O

OEM manufacturing strategies in THREE headline speaker sessions Production and plant case studies, and the blend of labour and automation Sessions on specific technologies, from stamping, powertrain in both i.c. and electric/hybrid, BIW, to robotics, and testing and evaluation Skills and human factors Automation, and the planning & management of the digital factory Heavy vehicle – truck and bus, and two- and three-wheelers TWO paintshop sessions with presentations from top global paintshop providers TWO powertrain sessions with OEM, Tier supplier and machine maker speakers A special outsourcing and supplier strategy session with GM and Magna Steyr speakers General Motors India’s, Director of Supplier Footprint Optimisation, Nilesh Shah will talk on outsourcing developments and purchasing strategies

With conference attendees at the vice-president, director or plant manager level, in addition to the informative presentations, there will be ample opportunity to network with industry colleagues on a one-to-one basis to discuss individual strategies designed to address local market growth in India. We hope that you can join us in Chennai for what will surely be a worthwhile – and enjoyable - experience. For full progamme information, visit: http://india.amsconferences.com

Confirmed speakers at AMS India 2010 M. M. Singh, Managing Executive Office (Production), Maruti Suzuki India Amit V Patel. Engineering Group Manager, Mfg Eng Manufacturing Automation Center, General Motors India Nilesh Shah, Director - Supplier Footprint Optimisation, General Motors India Michael Boneham, President and MD, Ford India Tom Chackalackal, VicePresident Manufacturing, Ford India Sarangarajan Thathapillai, Assistant VP, Production Division, Hyundai Motor India Rajeev Wasan, VP Manufacturing, Honda Siel Cars India L. P. Pereira, CEO, Mahindra Vehicle Manufacturers Selvam Ganesan, Manager, Projects, Mahindra Vehicle Manufacturers M C Silus, Senior Manager, Projects, Mahindra Vehicle Manufacturers Nitin Rajurkar, General Manager,Technical, TATA Motors & More... For a full speaker list, visit: http://india.amsconferences.com/ speakers

VISIT, EXPERIENCE, GROW BUSINESS AHMEDABAD-10-13 DEC 2010 Gujarat University Exhibition Hall, Ahmedabad

9920401226 | www.engg-expo.com

C O R P O R AT E

Envisioning E i The Future Of Manufacturing

SINGLE LARGEST CONVERGENCE E

PERSPECTIVE

O 360

INNOVATIONS

Auto Monitor

BREAKTHROUGH INNOVATIONS

For the first time in India, there an event that promises to deliver future solutions for the complete manufacturing & engineering industry. HiTech Manufacturing Show is a first of its kind event bringing the entire industry under one roof. With HiTech Manufacturing as a backdrop for the entire value chain, the show also has HiTech Material Handling and HiTech Automation as concurrent shows to complement the growth process and future of the industry.

Concurrent Shows

Factories of Tech Future | Future Design | Business Strategies

117-19 Feb, 2011 | NSE Ground, Goregaon, Mumbai

Contact: Prachi +91 9820373804 or hitech@infomedia18.in or SMS HITECH to 51818

First in Business Wordwide

1 - 15 December 2010

Auto Monitor

CORPORATE

Deal trends in cross border M&A... Contd. from P14 in detail, including opportunities to interact with the management hinge on the attractiveness of the preliminary non-binding offer. A strategy adopted by buyers, including private equity, pending confirmation of the existence of synergies is to position the preliminary offer in an ‘attractive zone’ with an articulated intention to move up the price band on confi rmation of synergies. This strategy would presuppose that the difference between a ‘good offer’ and the ‘winning offer’ is the existence of synergies. Buyers should also realise that even private equity buyers are approaching the deal with the same mindset and their offers at times are contingent on fi nancing packages. Also appreciate the value of

Nissan considering... Contd. from P6 Nissan diesel mix is higher than the petrol one and basically the same trend will be maintained in India,’ Tokuyama explained. Recently, NMIPL had released the sketch of its new global sedan that would be premiered at the 8th China (Guangzhou) International Automobile Ex hibition in December 2010. To be launched fi rst in China, the model would be rolled out in India in the second half of 2011 and would also be produced at the company’s Oragadam plant.

Maintaining Status Quo Meanwhile, a threat of import tariffs being slashed sizably on products from European markets post the signing of the EU-India Free Trade Agreement have placed a question mark over India’s growing status as an export hub. A SIAM official clarified that the association had already expressed its dissent to a lower import tariff regime and asked the Government to maintain the status quo of existing custom duties on imported cars and two-wheelers in CBU form. Nissan had recently commenced export of its petrol Micra to the European markets with a consignment of 3,866 cars. Tokuyama, when queried on whether Nissan exports could be dented if import tariffs were reduced post the FTA, preferred not to comment. But another OEM said that India held its forte in labour costs that were around 30 to 40 percent less than foreign countries and these were adequate to hold back import invasion into the country. Similarly, Majeed was of the opinion that India held a strong cost arbitrage that would enable the country to maintain its export status. ‘An India-EU FTA can benefit India’s trade status by being treated at par with other players in its export-import markets. It will also provide a level playing field to India and help streamline freight costs that are high due to rising oil prices,’ he elaborated. Majeed however, cautioned that before an FTA was entered into, a full analysis of it was necessary with opinions sought from all stakeholders.

appointing experienced transaction adv isors, including investment bankers, accountants and law yers, who have experience of your sector and the country in which your target is based. In addition to this experience, they can also help bridge cultural barriers and bring with them the much needed experience to achieve an efficient and rapid transaction experience for you.

Confirm synergies A planned due diligence effort across multiple streams focusing on the risks and opportunities should be undertaken as you progress ahead. However, it is important to appreciate right at the outset that the level of information that would be available to buyers would rarely

match the information available in a negotiated process and hence focusing your efforts on critical areas around synergies and their estimation is critical. Direct interactions with the management could be limited to management presentations.

Securing the support of target management Given t hat most midma rket compa n ies f rom emerging countries lack management bandw idth, it is critical to have the support of the target’s management team to continue post the acquisition. Management incentive packages would need to be addressed to help retain management. It is important to convey to the management as to why you are the ‘right acquirer’ and also outline

your strategic vision and integration plan. Management at times tends to be sceptical of emerging market buyers on account of perceived cultural differences and hence it is important to allay their concerns.

Securing the financing package Demonstrating financing strength is a key step to position to the vendor that a move forward is not contingent on fi nancing approvals. Part of the preparation discussed earlier is around how the contingencies linked to fi nancing are kept to a bare minimum, as any vendor would like to minimise the chances of a winning bidder lacking financial support, to consummate a deal. A clearly articulated strategic

rationale coupled with careful preparation for an auction process and speed of decision making during the process are essential to ‘close the deal’. Above all, conveying the right impression of your company and highlighting the strengths that you will bring to the target, can go a long way in influencing the vendors and their management when they are choosing the successful bidder. (John Hadley is Executive Director & Koushik J is Senior Manager with the Financial Advisory Services, PwC India. The authors are M&A professionals with significant experience of cross border transactions in the automotive sector. They could be reached at j.hadley@in.pwc.com and koushik.j@in.pwc.com)

Auto Monitor

1 - 15 December 2010

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19 ............. Titan Industries ..........................................................+91-4344-664846 ................................ senthilm@titan.co.in .......................................... www.titanautomation.in 28 ............. Triune Exhibitors Pvt Ltd. ..........................................+91-80-43307474 ................................. autoshow@triuneexhibitors.com........................ www.triuneexhibitors.com 13...............Yamazaki Mazak India Pvt Ltd ....................................... +91-20-27351417 ......................................sudhir_patankar@mazakindia.com ........................ www.mazak.com Q Our consistent advertisers

PRODUCT INDEX Product ............................................................ pg no. Accelerator pedal sensor accessories ........................21 ADEA - Automotive Dealership Excellence Awards .....18 AS-interface systems ..................................................25 Auto Monitor-10th Anniversary ..................................26 Auto parts ..................................................................12 Automation ................................................................17 Automation & storage system ....................................25 Automobile parts .......................................................6 Bearings .....................................................................6 Billet shearing machines ............................................12 Building automation ..................................................17 Cable carriers .............................................................6 Cable connectors........................................................6 Cables for bus systems ...............................................25 Cables handling & processing systems .......................25 Cables scraps ..............................................................25 Capacitive and magnetic sensors ...............................25 Castings forgings ........................................................12 CED coating machines ................................................17 C-frame power press ..................................................12 Chains.........................................................................6 Chemlok coating machines ........................................17 Clutch housing ...........................................................8 CNC .............................................................................9,23 CNC cutting machines ................................................17 CNC hmcs ...................................................................23 CNC laser cutting machines........................................17 CNC lathes ..................................................................BC CNC machines ............................................................23 CNC oval turning centers ............................................23 CNC oxy fuel cutting machines...................................17 CNC plasma cutting machines ....................................17 CNC turn mill centers .................................................23 CNC turning center .....................................................23 CNC vertical machining center ...................................23 CNC/VMC machines ....................................................13 Coating machines .......................................................17 Coating plants ............................................................17 Coating systems ..........................................................17 Commercial vehicles ..................................................FIC Compression springs ..................................................3 Compressor ................................................................31 Connectors .................................................................6 Connectors accessories ..............................................25 Countersinks ..............................................................BIC Crimp contact & tools ................................................25 FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

Custom-made cables ..................................................25 Cutting machines .......................................................17 Cylinder box ...............................................................8 Cylindrical grinders ....................................................BC Data cables.................................................................25 Diamond tools............................................................BIC Die & mould - South International Exhibition ...........14 Dip spin coating machines .........................................17 Drilling tools...............................................................BIC EGR valve ....................................................................21 Electronic control unit ...............................................21 Engine block for automobile......................................8 Ex series .....................................................................23 Exhibition - engineering expo ....................................1, 29 Exhibition - hitech manufacturing show....................30 Extension springs .......................................................3 Factory automation....................................................17 Fluidised bed coating machines. ...............................17 Forging press ..............................................................12 Friction drop hammers ..............................................12 Friction screw press ...................................................12 Glide coating machines ..............................................17 Gun drills ....................................................................BIC H frame power press ..................................................12 Hammers....................................................................12 Hollow bars ................................................................16 Horizontal CNC machines...........................................23 Horizontal machining center .....................................9,23 IdentiďŹ cation systems ................................................25 Imaging & vision systems ...........................................17 Inductive ....................................................................25 Industrial connectors .................................................25 Instrumentation made cables ....................................25 Kx series .....................................................................23 Kxg series ...................................................................23 Lathes .........................................................................9 Lean assembly lines ...................................................19 Linear assembly lines .................................................19 Machinery steel ..........................................................11 Marking solutions.......................................................33 Metal cutting tools .....................................................27 Milling centres ............................................................9 Milling cutters ............................................................BIC Modular tooling system .............................................BIC Mx series ....................................................................23 Nx series .....................................................................23 Paint shop equipment ...............................................17

Paint shop machines ..................................................17 Photoelectric sensors .................................................25 Powder matallergy products......................................6 Power chucking cylinders ..........................................BC Pre-treatment systems ...............................................17 Protective-conduit system .........................................25 Quality steel ...............................................................11 Reamers .....................................................................BIC Roatry.........................................................................9 Robotic assembly lines & robotic weld cells ..............19 Rotary assembly machines.........................................19 Rotary encoders .........................................................25 Scada & dcs implimentaion .......................................17 Sensors .......................................................................25 Solid carbide drills .....................................................27 Solid carbide drills with IC .........................................27 Solid carbide mills......................................................27 Solid carbide reamers ................................................27 Solid carbide reamers with IC ....................................27 Solid carbide special drills .........................................27 Solid carbide special mills..........................................27 Solid carbide special reamers ....................................27 Speciality chemicals ...................................................7 Spiral cables ...............................................................25 Spray equipments ......................................................20 Stainless steel gear parts ............................................6 Strip steel ...................................................................11 Sx series ......................................................................23 Taps ............................................................................BIC Testing machine .........................................................20 Tool bits .....................................................................11 Tool steel ....................................................................11 Torsion springs ...........................................................3 Transmission cylinder box..........................................8 Transmission gears .....................................................6 Transmission housing.................................................8 Truck tyres..................................................................15 Turrets ........................................................................BC Two wheeler tyres ......................................................15 Tyres ...........................................................................15 Ultrasonic sensors ......................................................25 Vaccum pump ............................................................21 Vertical line series ......................................................23 Vertical machining center ..........................................9, BC Vision inspection systems ..........................................19 VMC -linear series.......................................................23 Wire forms ..................................................................3

1 - 15 December 2010

Auto Monitor

CORPORATE

Roots Industries inks JV with Russian... Contd. from P1 ‘We contribute technical know-how, assembly and production lines, tooling and other key inputs to the JV, whereas our Russian partner will bring to the table infrastructure, marketing and administrative expertise.’ Meanwhile, the Russian facility would begin operations with 50 people, of which about 30 would be locally employed. About four key managerial employees will be provided by RIL and will be permanently posted at the plant. Roots would also impart operator, technical, product, testing and validation training to staff and workers at the plant.

An April Start The new manufacturing facility that would be operational in April 2011 would house a press shop, components, housings and tools shop. Ramasamy said that the new facility was undergoing some modifications and was almost ready. The production unit would be located within the existing plant of Avtocom, where a separate building had been allotted for production and stocking operations with a built-up space of 12,000 sq ft. Drawing similarities between Indian and Russian policies that promoted local investment, when foreign collaborations were formed, Ramasamy said that Roots would localise over 80 percent of its horn components to achieve cost efficiencies. These would include housings, grills and trumpets for which import duties would shore up the cost of the fi nal product. ‘It is not economical to transport all the components from India, so only critical com-

ponents like diaphragms and contacts will be produced in our Coimbatore plant and sent to our joint venture facility in Russia,’ he added. The Russian plant would have a production capacity of 0.6 million horns in the fi rst year, 1.8 million in the second year and 2.4 million units in the third year of operations. The JV is targeting a top line of `24 crore within three years with `6 crore expected at the end of the fi rst year of operations. Ramasamy said that the production at their Russian plant would primarily target the Russian Federation requirements but later, the partnership could look at opportunities in the CIS countries as well.

International Operations RIL also has manufacturing facilities in Iran and Malaysia, where it is currently upgrading its capabilities. It set up a 50:50 joint venture with Razmin Industries of Iran in 2009 with an investment of `6 crore. The JV company, Razmin Roots Company of ARVAND Freezone, is expected to register a turnover of `9 crore in FY11 with plans to double it in FY12. In Iran, RIL is expanding capacity by adding another shift in the next six months to pare up the production to over 120,000 horns per month. In the current fi scal, the plant capacity is expected to touch 0.75 million horns and around 1.5 million in the subsequent financial. The present capacity stands at 60,000 horns per month in a single shift. According to Ramasamy, the equipments have been installed and training of staff has to be

Inspection and assembling conducted at Roots Industries’ Coimbatore facility

undertaken. That is expected to take another six months. The electrical horns produced in Iran cater to the Iranian four-wheeler OEMs. ‘Both our Malaysian and Iranian plants are focused only on the domestic markets and are not meant for exports,’ remarked Ramasamy. Roots set up an 80:20 joint venture company Roots Industries (Malaysia) about eight years ago, with Roots holding 80 percent of the stake in it with the balance held by its local partner. ‘We cater to 60 percent of the OE requirements in Malaysia and are targeting a top line of `3.5 crore in FY11 and `4.2 crore in FY12 there,’ he said. In Malaysia, the company holds a marketshare of 60 percent in electrical horns, as air horns are not popular in foreign markets because of the noise

pollution caused by their high decibel levels.

Strong Performance Overall, Roots Industries is targeting a consolidated turnover of `137.87 crore from both its Indian and foreign operations in the current fiscal with RIL India contributing a top line of `125.37 crore. A 25 percent growth is expected over that in FY12. Talking about the advantages that would accrue to the company with the new joint ventures and expansion plans, Ramasamy said it would shore up the revenue, employee strength and also add new customers to the company’s kitty. The company is also investing `22 crore in its Indian operations over the next two years, funded through internal accruals and a term loan. It is expanding capac-

ity in India by 40 percent during FY12 for meeting the expanding requirements of its customers. The current fi scal is expected to close with six million electrical horns. The target is to reach 9.5 million horns per annum by FY13, primarily for fulfi lling the needs of the passenger car segment. At present, the OE demand constitutes 25 percent of the total RIL India top line, with exports contributing 40 percent and the aftermarket bringing up the rear in electrical horns. Despite the dip in exports during the slowdown, RIL’s key export markets continue to remain the US, Europe and the Middle East. Overseas sales have been notching a healthy 20 percent growth per annum and the company expects exports to account for `45 crore by FY11-end.

Auto Monitor

1 - 15 December 2010

GLOBAL WATCH

International auto round-up EUROPE Automobile trading business of Porsche Holding Salzburg to be sold to Volkswagen The family shareholders of Porsche Holding Gesellschaft are likely to exercise the put option to sell to Volkswagen the operating business of Porsche Holding Salzburg (PHS). The transfer of the automobile trade company will take place at a fi xed price of €3.3 billion, probably during the first half of 2011 but no later than 30 September, 2011. PHS will retain its status as a single organisational unit with its successful business model as well as all assets and all brands. At the same time we will be significantly strengthening our own trade activities in major markets and regions. PHS is Europe’s most successful private automobile trading company and has a particularly strong presence in Austria, Western Europe and South Eastern Europe as well as China. In the last fiscal ending March 2010, unit sales of 421,000 new vehicles generated sales revenue of €12.2 billion, with profitability higher than the market average. PHS employs some 20,300 people.

Renault seeks job cuts in France to offset production decline Renault is seeking an early-retirement agreement with unions in response to declining domestic production. The company is holding talks under French labour laws that allow factory workers to seek early retirement, said spokeswoman at Renault, Caroline De Gezelle declining to comment on the number of employees affected because the negotiations are ongoing. The plan is linked to forecasts that include an estimated 23 percent output drop next year at Sandouville, the Northern French plant producing the Laguna and Espace models. Renault’s domestic production has fallen in step with declining sales of larger cars assembled exclusively in France. Smaller models such as the Clio subcompact and Twingo minicar are increasingly manufactured for the Western European market in Turkey, Slovenia and other lower-wage economies. Renault has said it may transfer future replacements for the Espace minivan and Laguna mid-sized car to its plant in Douai, France, from Sandouville. Production at Sandouville, which employs 2,500 people, is likely to drop to 53,000 vehicles next year from an expected 69,000 in 2010, De Gezelle said.

Volkswagen to spend $71 billion to help leapfrog Toyota

AMERICAS Auto bailout saved more than 1.4 million jobs The US government bailout of GM, Chrysler and other automotive fi rms saved more than 1.4 million jobs, according to the Center for Automotive Research in Ann Arbor. It estimated most of the jobs —1.14 million—were saved in 2009 during the low point of the industry’s severe downturn. But another 314,400 jobs were saved in 2010, the center said Wednesday. The government will recoup some of the $82 billion spent on the bailout when GM launches an initial public stock offering . The IPO will allow it to reduce the 61 percent stake in GM that it took in exchange for loans. A failure of one or two of Detroit’s Big Three might have driven many suppliers out of business, putting at risk healthier companies like Ford and the foreign transplants.

US vehicle fuel efficiency hits record level Fuel economy soared to its highest overall level last year, increasing by 1.4 mpg, to 22.4 mpg — the highest since the government started keeping track in 1975, according to a report in the Detroit News. The Environmental Protection Agency said that ‘real-world’ 2009 model year fleetwide fuel economy was 22. 4 mpg — slightly better than the record set in 2007. The EPA said the 2010 model year projected fleetwide average is 22.5 mpg. Americans opted for smaller, less powerful vehicles last year, the report showed. They purchased fewer SUVs, vans and pickup trucks. The report said the average weight and horsepower of a new vehicle fell from the 2008 to 2009 model year. The average vehicle weight fell from 4,085 pounds to 3,917 pounds—though it is projected to rise to 4,009 for the 2010 model year. But the way that figure is calculated is different than how EPA calculates the real-world fuel economy of vehicles.

Chevrolet to commence Volt deliveries Chevrolet will start delivering its all-new range-extended electric Volt in the coming weeks. The Volt was one of two cars Chevrolet showcased at the recent Los Angeles Motor Show. The other is the all-new Chevrolet Camaro convertible. Head, Marketing- Chevrolet, Chris Perry, said the drop-top Camaro will be available in February as a 2012 model.

Volkswagen said it will invest about Euro 51.6 billion (nearly $71 billion) in its automotive division in the next five years as it aims to pass Toyota as the leading global automaker in sales and profitability by 2018. ‘These investments underline Volkswagen’s goal of becoming the leading automobile manufacturer for its customers, employees and shareholders,’ VW CEO Martin Winterkorn said in a statement after the automaker’s supervisory board approved investment plans for 2011 to 2015. About 27.7 billion euros will be invested in modernising and extending the product range of all the group’s brands, which include Audi, Bentley, Porsche and Lamborghini on the luxury side and the VW, Skoda and Seat volume brands. VW said it will continue developing hybrid and electric motors and invest in new generations of engines with enhanced performance, fuel consumption and emission levels.

The government is urging owners of recalled Ford minivans to get their vehicles fi xed, according to a report in the Associated Press. About 575,000 Ford Windstar minivans from the 1998 to 2003 model years were recalled in August over concerns that the rear axles could corrode and potentially break. The recalled vehicles were sold or registered in regions where heavy use of road salt can cause more corrosion. That includes Canada, New England, the Mid-Atlantic states and the Great Lakes region. The National Highway Traffic Safety Administration said only about 75,000 of the minivans had been fi xed by the recall, leaving a large number of vehicles still to be repaired. Typically, 70 percent of recalled vehicles get fi xed in 18 months.

French battery maker Saft eyes Chinese EV market

Bridgestone announces 425 job cuts, restructuring

European battery producer Saft and its automotive partner Johnson Controls are in talks with a number of local companies to enter the Chinese market for electric vehicles. Johnson Controls and Saft manufactures the cells and cooling system for the lithium ion battery used in the Mercedes Benz S-class and BMW 7-series mild hybrids. China wants to leapfrog established Western auto companies by skipping development of high tech combustion engines and going straight to drivetrains powered partly or entirely with electricity. The Chinese government is going to subsidise the industry very significantly to bring clean vehicles to market, but these subsidies are going to be directed at the 100 percent Chinese companies like Shanghai Automotive, Beijing Automotive, Geely and Chery and not the Western-Chinese joint ventures. While lithium-ion batteries are used in a myriad of consumer electronics, the car industry is only just starting to employ them, since they were previously considered too unstable and not durable enough to be used for 10 years without a marked loss of performance. Studies suggest the lithium-ion car battery market could be worth $5 billion by 2015, or even twice that depending on how quick carmakers bring models to the market.

Bridgestone Americas is cutting 425 jobs nationwide and moving two unit headquarters to the Music City, according to a report in the Associated Press. The restructuring includes relocating the headquarters of its Bandag new and retreaded commercial tire unit to Nashville from Muscatine, Iowa, by next year. The company will also relocate the headquarters of the Bridgestone Americas Original Equipment tire unit from Michigan. The company said all the current Bridgestone locations, including Muscatine and Lovi, will continue to house important operations.

Government urges fix for recalled Ford minivans

Turkish cab among potential New York’s ‘Taxi of Tomorrow’ A futuristic Turkish taxi cab with a see-through roof for gazing at the skyline is among three fi nalists in New York City’s search for the ‘Taxi of Tomorrow’,according to a Reuters report. The model V1 by Turkish automaker Karsan Otomotiv made the short list along with models by Nissan and Ford, the city announced. The city’s Taxi and Limousine Commission launched the ‘Taxi of Tomorrow’ competition in 2007 to win an exclusive contract to provide cabs for at least 10 years.

ASIA Shanghai Auto buys one percent stake in GM GM’s Chinese venture partner Shanghai Automotive Industry has acquired a one percent stake in the Detroit automaker for $500 million. Shanghai Automotive had earlier expressed its intention to acquire shares in GM, its venture partner since 1997. The two automakers teamed up in China, where foreign companies are allowed to produce cars only in ventures with domestic car companies. The JV has been successful in China, selling more than 2 million vehicles this year, and they are now joining forces to target India’s booming car market. Shanghai Automotive is the controlling shareholder of SAIC Motor, which is acquiring 15.15 million GM shares at $33 apiece, through its SAIC Motor HK Investment unit.

Renault, Nissan to build EVs Renault and Nissan plan to build 500,000 electric vehicles annually by the end of 2013. In a recent interaction with automotive reporters, CEO, Renault and Nissan, Ghosn also predicted additional consolidation in the auto industry, but said it may come through joint projects rather than one automaker acquiring another. Nissan is launching its electric Leaf, which has a 100 mile range, in December. It plans to sell 20,000 Leafs in the US during the next year. Ghosn predicts that because of strong consumer demand, Nissan will be ‘capacity constrained’ for the Leaf for the next three years. Nissan and Renault each will have four electric vehicle models by 2013. For Nissan, the Japanese automaker plans an electric light commercial vehicle, small city car, luxury car, plus the Leaf. Nissan plans to produce 200,000 battery packs annually and 150,000 vehicles in the United States by 2013, when its new Leaf factory starts production in Tennessee. The Tennessee plant won a $1.4 billion low-cost government loan.

VW unit Skoda plans huge rise in China production Skoda wants to produce 500,000 cars in China in the future, said Chief Executive Officer, Winfried Vahland in a newsletter of Skoda unions, according to a Reuters report. The Volkswagen AG Czech subsidiary produced 131,779 cars in China in 2009. Skoda is

on pace for record sales this year, selling 568,990 vehicles in the fi rst nine months, led by a 65 percent jump in China. Skoda expects to double its new-car sales to around 1.5 million in 2020, driven by growth in China, India and Russia, Vahland said. Larger volumes at the Skoda will play an important role in helping VW reach its target of 10 million annual sales by 2018, at which time it hopes to topple Toyota as the top global automaker. As part of a 10-year international growth plan, Skoda sales outside Europe will increase to make up half of the brand’s volume from 30 percent today. Skoda sales rose 1.4 percent to 684,226 last year.

Toyota will launch electric iQ in green push Toyota will launch an electric version of its iQ minicar in 2012, targeting urban commuters who drive short distances. Toyota said the battery-powered iQ will be cheaper than rival electric cars such as the Mitsubishi i-MiEV or the Nissan Leaf. Both are larger than the 3+1 seat iQ. Toyota did not specify a price range for the planned electric car. Prices for the iQ with a gasoline engine start at 12,900 euros (about $17,640) in Germany. The battery powered iQ will run 105km (65 miles) on a single charge. It will launch in Europe, Japan and the United States. Sales in China are also being considered, the company said. Toyota is developing the iQ in-house and is also working with luxury electric car maker Tesla Motors on an electric version of its RAV4 compact SUV.

1 - 15 December 2010

NHTSA probes rental car recall repairs

he National Highway Tr a f f ic Safety Ad m i n i st r at ion ha s opened an investigation into how quickly rental car companies fi x recalled vehicles, according to a report in the Detroit News. NHTSA said on its website that it is looking at nearly 3 million recalled vehicles from GM, Ford and Chrysler that were sold to rental car companies. The review covers 29 models — from sedans to minivans to sport utility vehicles — built from 2000 to this year. The agency said its probe is to give ‘an indication of how completely and how quickly rental car fleets, in general or individually, perform necessary recall-related repairs or other remedies on the vehicles owned and then leased for use on the roadways.’ The Center for Auto Safety, a group founded by Ralph Nader and Carol Houck, has fi led a petition with the Federal Trade Commission urging Enterprise Holdings to repair vehicles before they rent them. NHTSA said it ‘has been informed of incidents involving allegations of personal injury and death claimed to have been caused by safety defects and failures’ that are ‘on rental car vehicles for which a safety recall to remedy the safety defect or noncompliance had allegedly not been performed prior to the rental car company’s lease of the vehicle.’

Repair Work No law requires rental car companies to fi x vehicles before they return to service, said Sharon Faulkner, executive director of the American Car Rental Association. Most companies quickly repair vehicles once they get a notice, she said. The FTC petition follows a suit the center’s Houck and her husband fi led against Enterprise Rent-A-Car that stems from the 2004 deaths of their two daughters, Raechel and Jacqueline, ages 24 and 20. The sisters rented a PT Cruiser from Enterprise that, unknown to them, had been recalled for risk of underhood fires. W hile traveling through California, the car caught fi re, causing it to collide with a semi-trailer truck, instantly killing the women, the petition said. After fi ve years of fi ghting, Enterprise admitted liability in the deaths. The couple won a $15 million damages-only verdict in June. The petition said at least four people had rented the vehicle after Enterprise received a recall notice. Privately held Enterprise has a third of airport business in the United States and Canada through its Enterprise, Alamo and National fi rms. Enterprise spokeswoman Laura Bryant said the company would cooperate with NHTSA in any inquiry involving current practices. NHTSA issues hundreds of recalls annually and automakers issue hundreds of service bulletins affecting millions of vehicles in North America, including thousands of our rental cars and trucks, Bryant said.

GLOBAL WATCH

Auto Monitor

Ford reduces its debt by $1.9B F

ord recently said that it expects to end the year with more cash than debt after converting $1.9 billion in debt to new common stock that will be issued at month’s end, according to a report in the Associated Press. The last time this situation occurred was the second quarter of 2008. Debt reduction is crucial for the company that avoided following GM and Chrysler into bankruptcy, where those carmakers shed most of their debt. Ford mortgaged everything the company had, including its Blue Oval trademark, to restructure itself and has made cleaning up its balance sheet a priority. The automaker seeks to get its debt back to investment grade status and start paying dividends again. To raise cash and reduce

debt, Ford said it would make conversion offers, with cash inducements, on two convertible debt securities. Investors had been given time to decide whether to participate in the special offer conversion. Ford said 74 percent chose to do so, signaling confidence in the automaker. Ford will make a $534 million cash payment and issue 274 million shares to the noteholders. The cash premiums reflect the value of pending interest payments. It is a good deal for both sides, said senior Director, Fitch Ratings, Stephen Brown. Ford lost its investment grade status in 2005. Most ratings agencies still have Ford a notch or two below the watershed mark. Ford has reduced automotive debt $12.8 billion this year, down to about $21billion from the $34 billion it

Lewis Booth, Chief Financial Officer, Ford

held at theend of 2009. Ford also has lowered its total annual interest costs nearly $1 billion. Debt conversions cut interest costs about $180 million. ‘These successful conversion

offers represent another significant step toward our goal of reducing our automotive debt and improving our balance sheet,’ said Chief Financial Officer, Ford, Lewis Booth.

Auto Monitor

1 - 15 December 2010

SIAM DATA

PRODUCTION AND SALES FLASH REPORT FOR OCTOBER 2010 Category Segment/Subsegment Manufacturer.

Production For the month of October 2009

2010

Cumulative April-October 08-09

A: Passenger Cars- No of seats not over 6 A1: Mini - (Upto 3400 mm) 3,896 3,204 22,200 Maruti Suzuki India Ltd (Maruti 800 ) Tata Motors Ltd (Nano) 3,002 4,794 9,777 Total 6,898 7,998 31,977 A2: Compact (3401-4000mm Fiat India Automobiles Pvt Ltd (Palio, Fiat500,Grande Punto) 844 1,340 9,064 Ford india Pvt Ltd ( Fusion, Figo ) 0 7,265 455 General Motors India Pvt Ltd (Beat, Spark,U-VA) 4,517 6,575 26,920 Honda Siel Cars India ltd (Jazz) 360 0 6,609 Hyundai Motors India Ltd(Santro,Getz, i10, i20) 46,905 43,808 296,103 Maruti Suzuki India Ltd (Alto,Wagon R,Zen,Swift, A-Star, Ritz) 63,570 82,245 430,369 Nissan Motor India Pvt Ltd (Micra) 0 9,745 0 SkodaAuto india p.ltd ( Fabia ) 750 703 2,876 Tata Motors Ltd (Indica) 9,603 14,648 65,062 Volkswagen India Pvt Ltd (Polo) 0 2,084 0 Total 126,549 168,413 837,458 A3: Mid -Size (4001-4500mm) BMW India Pvt Ltd (Z4 Roadster) 0 0 0 Ford India Pvt Ltd (Ford ikon,Fusion,Fiesta) 3,206 2,254 16,863 General Motors India Pvt Ltd (Cheverlet Aveo NB) 324 400 1,736 Hindustan Motors Ltd (Ambassador, Lancer,Cedia) 902 653 4,613 Honda Siel Cars India Ltd (City) 5,057 3,285 24,064 Hyundai Motors India Ltd (Accent,Verna) 5,062 5,708 25,543 Mahindra Renault Pvt Ltd (Logan) 638 1,230 4,163 Maruti Suzuki India Ltd (SX4,Dzire) 8,773 11,386 53,271 Nissan Motor India Pvt Ltd (Nissan 370Z) 0 0 0 Skoda Auto India Pvt Ltd (Corolla) 0 131 0 Tata Motors Ltd (Indigo,Marina) 1,983 3,583 4,525 Volkswagen - Audi (TT, R8) 0 0 0 Volkswagen India Pvt Ltd (Beetle) 0 1,633 0 Total 25,945 30,263 134,778 A4 : Executive (4501-4700mm) BMW india pvt Ltd (3 Series) 12 79 620 Fiat India Automobiles Pvt Ltd (Linea) 914 643 6,687 General Motors India Pvt Ltd (cheverlet Optra, Cruze) 677 1,290 1,509 Honda Siel Cars India Ltd (Civic) 660 483 3,198 Hyundai Motors India Ltd (Elantra) 0 0 0 Mercedes-Benz India Pvt Ltd (C-Class, 161 181 956 SLK Roadster, CLK Cabriolet, E-Coupe) Skoda Auto India Pvt Ltd (Octavia,Laura) 723 428 3,247 Toyota Kirloskar Motor Pvt Ltd (corolla) 833 962 5,376 Volkswagen - Audi (Q5) 0 0 0 Volkswagen India Pvt Ltd (Jetta) 0 595 273 Total 3,980 4,661 21,866 A5 : Premium (4701-5000mm) BMW india pvt Ltd ( 5 & 6 Series) 177 387 919 Honda Siel Cars India Ltd ( Accord ) 270 184 1,710 Hyundai Motors India Ltd ( Sonata ) 35 20 320 Mercedes-Benz India Pvt Ltd (E-Class, CLS) 115 130 519 Nissan Motor India Pvt Ltd (Teana)** 0 0 0 Skoda Auto India Pvt Ltd (Superb) 338 435 1,682 Toyota Kirloskar Motor Pvt Ltd (Camry ) 0 0 0 Volkswagen - Audi (A4,A6)* 0 0 0 Volkswagen India Pvt Ltd (Passat, Touareg) 0 8 55 Total 935 1,164 5,205 A6: Luxury (5001mm&abve) BMW india pvt Ltd (7 Series ) 0 0 0 Mercedes-Benz India Pvt Ltd ( S-Class) 3 89 210 Volkswagen - Audi (Q7,A8) 0 0 0 Volkswagen India Pvt Ltd (Phaeton) 0 0 0 Total 3 89 210 Total A 164,310 212,588 1,031,494 Utility Vehicles B: Max. Mass upto 3.5 tn, B1(a): No of seats not over 7 BMW india Pvt Ltd (X3, X5, X6) 0 0 0 Force Motors Ltd (trax) 5 0 13 Ford India Pvt Ltd (Endeavour) 316 252 1,200 General Motors India Pvt Ltd (Tavera, Captiva) 540 742 3,205 Hindustan Motors Ltd (Pajero) 136 269 897 Honda Siel Cars India Ltd (CR-V) 0 0 0 Hyundai Motors India Ltd (Tucson) 0 0 0 Mahindra & Mahindra Ltd (Scorpio, Bolero, 6,692 10,479 50,689 Soft Tops, Hard Tops, Xylo) Maruti Suzuki India Ltd (Vitara) 0 0 0 Mercedes-Benz India pvt. Ltd (GL-Class, M Class) 0 0 0 Nissan Motor India Pvt Ltd (X-Trail)* 0 0 0 Tata Motors Ltd (Safari) 1,368 2,176 10,817 Toyota Kirloskar Motor Pvt Ltd (Innova,Prado) 2,574 3,203 13,451 Total 11,631 17,121 80,272 (b) :No of seat inculding driver exceeding 7 but not exceeding 9(7+1&8+1)( M1(B2) ) Force Motors Ltd (Trax) 0 0 10 General Motors India Pvt Ltd (Tavera) 88 118 989 International Cars & Motors Ltd (Rhino) 50 41 513 Mahindra & Mahindra Ltd (Scorpio, Bolero, 4,360 4,768 30,535 Soft Tops, Hard Tops, Xylo) Maruti Suzuki India Ltd (Gypsy) 185 361 1,537 Tata Motors Ltd (Sumo, Safari, Winger) 753 1,112 2,569 Toyota Kirloskar Motor Pvt Ltd (Innova) 2,341 2,265 14,221 Total 7,777 8,665 50,374 Total B1 19,408 25,786 130,646 B2: Max Mass upto 5 tonnes (a) : No of seat inculding driver not exceeding 13(M2(A1)) Force Motors Ltd (Trax, Traveller) 316 726 3,129 General Motors India Pvt Ltd (Tavera) 545 685 3,158 Mahindra & Mahindra Ltd (Bolero, Soft Tops, Hard Tops) 130 0 6,889 Tata Motors Ltd (Sumo, Winger) 92 92 5,514 Total B2 1,083 1,503 18,690 Total Utility Vehicles (Uvs) 20,491 27,289 149,336 C :Multi Purpose Vehicles (MPVs)-Van type vehicles & Max Mass not excdding 3.5 tonnes (M1( c )) Van Type Force Motors Ltd (trip) 0 52 0 Maruti Suzuki India Ltd (Omini,Versa) 8,209 15,009 53,269 Tata Motors Ltd (ACE-Magic) 3,981 4,290 27,215 Total MPVs 12,190 19,351 80,484 Total Passenger Vehicles (PVs) 196,991 259,228 1,261,314 Commercial Vehicles M&HCVs A: Passenger Carriers, A1: Max mass not over 12 tn (b): No of seats over 13 Ashok Leyland Ltd 132 123 849 Swaraj Mazda Ltd 216 276 1,292 Tata Motors Ltd 253 326 2,868 VE CVs - Eicher 63 25 1,137 Total A1 664 750 6,146 A2: Max mass exceeding not over 16.2 tn (b): No of seats over 13 Ashok Leyland Ltd 1,710 1,740 8,480 JCBL Ltd 23 NA 23 Swaraj Mazda Ltd 0 7 13 Tata Motors Ltd 1,284 1,497 8,451 VE CVs - Eicher 28 21 130 Volvo Buses India Pvt Ltd 57 46 339 Total A2 3,102 3,311 17,436 A3: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(C)) Passenger Carrier (D) Volvo Buses India Pvt Ltd 3 18 34 Total M&HCVs(passenger carriers) 3,769 4,079 23,616 B: Goods Carriers B1: Max mass over 7.5 tn & less than 12 tn Ashok Leyland Ltd 115 48 815 Swaraj Mazda Ltd 311 320 1,966 Tata Motors Ltd 1,775 1,599 10,755 VE CVs - Eicher 1,349 2,155 8,447 Total 3,550 4,122 21,983 B2: Max mass not over 16.2 tn (a): Max mass 12-16.2 tn Ashok Leyland Ltd 1,241 1,015 7,100 Tata Motors Ltd 3,325 3,321 17,935 VE CVs - Eicher 193 376 1,020 Total B2 4,759 4,712 26,055 B3: Max mass over 16.2 tn (a): Rigid Vehicles (i) Max mass 16.2-25 tn Ashok Leyland Ltd 1,778 350 7,341 Asia Motor Works Ltd 324 361 1,163 Force Motors Ltd 0 0 1 Mahindra Navistar Automotives Ltd 0 56 0 Tata Motors Ltd 4,343 3,557 28,589 VE CVs - Eicher 33 110 172 VE CVs - Volvo 4 0 4 Total 6,482 4,434 37,270 (b) Max mass over 25 tn Ashok Leyland Ltd 33 49 400 Daimler India Commercial Vehicles Pvt Ltd* 0 20 0 Kamaz Vectra Motors Ltd NA NA NA Mahindra Navistar Automotives Ltd 0 118 0 Mercedes-Benz India Pvt Ltd 20 0 41

Source: SIAM

Domestic Sales For the month of Cumulative October April-October

09-10

2009

23,020 40,492 63,512

3,124 3,018 6,142

8,354 50,484 42,883 856 311,472 523,423 20,402 3,539 83,815 14,317 1,059,545

2010

Exports For the month of October

08-09

09-10

2009

2,631 3,065 5,696

18,980 10,518 29,498

14,744 40,467 55,211

55 0 55

1,221 57 4,807 830 25,269 51,437 0 767 9,640 0 94,028

1,347 7,149 6,561 332 31,165 77,502 1,062 756 9,732 2,344 137,950

8,346 493 27,727 5,432 153,927 351,266 0 3,376 66,508 0 617,075

7,876 45,328 41,290 3,132 183,829 446,968 4,342 3,576 58,634 14,366 809,341

0 11,935 2,612 4,949 28,148 34,808 6,348 72,816 0 131 27,864 0 2,653 192,264

6 3,217 332 895 5,129 2,988 401 8,804 0 0 4,899 0 0 26,671

11 1,584 399 630 4,316 3,464 1,079 11,621 2 100 8,292 2 1,659 33,159

6 16,127 1,849 4,606 24,004 18,243 3,302 53,029 0 0 23,397 0 0 144,563

1,065 6,115 7,394 3,187 0 1,372

140 1,000 975 623 0 157

267 723 1,290 401 0 177

4,100 5,960 0 3,296 32,489

638 834 14 158 4,539

1,273 1,264 161 1,203 0 2,481 0 0 636 7,018

Cumulative April-October

2010

08-09

09-10

1,208 0 1,208

2,474 0 2,474

6,979 0 6,979

53 0 23 8 22,138 13,633 0 12 247 0 36,114

93 661 39 0 15,234 9,691 9,186 0 508 0 35,412

284 0 254 30 153,882 76,773 0 16 2,124 0 233,363

903 4,135 197 15 130,187 78,699 9,186 0 4,064 0 227,386

51 9,782 2,456 4,864 27,748 22,834 4,948 71,941 6 100 52,063 5 3,262 200,060

0 232 5 0 4 1,297 250 78 0 0 141 0 0 2,007

0 50 6 0 0 2,266 0 83 0 0 61 0 0 2,466

0 706 36 0 14 9,524 1,000 271 0 0 684 0 0 12,235

0 747 83 1 32 12,702 1,500 483 0 0 1,116 0 0 16,664

659 6,768 1,995 3,147 0 1,039

1,372 6,057 6,475 2,861 2 1,458

0 13 0 0 0 0

0 51 0 0 0 0

0 203 2 0 0 0

0 119 3 3 0 0

385 962 58 281 4,544

4,397 5,302 127 1,355 24,789

4,033 5,929 374 2,141 30,702

0 0 0 0 13

0 0 0 0 51

0 0 0 0 205

0 0 0 0 125

158 280 44 125 14 336 37 76 59 1,129

351 197 22 137 23 420 25 218 59 1,452

857 1,692 282 524 116 1,681 161 656 367 6,336

1,441 1,369 167 1,235 160 2,456 290 1,195 661 8,974

0 0 0 0 0 0 0 0 0 0

0 5 0 0 0 0 0 0 0 5

0 382 0 0 382 1,355,210

19 38 49 0 106 132,615

58 64 69 0 191 182,992

227 249 312 0 788 823,049

307 339 318 21 985 1,105,273

0 0 0 0 0 38,189

0 0 0 0 0 39,137

0 0 0 0 0 248,277

0 0 0 0 0 251,159

0 24 2,010 4,509 1,611 0 0 57,123

20 5 184 656 124 47 0 7,738

66 3 293 871 272 29 74 10,543

340 13 1,047 4,105 889 155 12 49,619

256 24 1,818 5,503 1,617 336 74 56,620

0 0 0 0 0 0 0 172

0 0 0 0 0 0 0 153

0 0 0 2 0 0 0 436

0 0 0 0 0 0 0 722

0 0 0 13,773 21,941 100,991

0 7 25 1,631 2,519 12,956

17 52 44 2,302 3,299 17,865

59 57 93 10,720 13,542 80,651

66 274 300 13,376 22,163 102,427

0 0 0 0 0 172

0 0 0 11 0 164

0 0 0 58 0 496

0 0 0 151 0 873

0 767 460 38,891

0 96 100 4,944

0 138 48 5,473

0 1,535 695 29,957

0 778 428 38,273

0 0 0 33

0 0 0 120

0 0 38 240

0 1 0 841

2,871 7,320 15,908 66,217 167,208

168 289 2,260 7,857 20,813

405 525 2,316 8,905 26,770

2,264 2,039 14,122 50,612 131,263

4,163 3,532 15,883 63,057 165,484

10 17 0 60 232

70 27 0 217 381

40 107 0 425 921

117 239 0 1,198 2,071

4,707 5,415 1,428 543 12,093 179,301

342 519 432 851 2,144 22,957

849 747 45 1,042 2,683 29,453

3,160 2,834 6,968 6,641 19,603 150,866

4,654 5,308 1,442 6,937 18,341 183,825

0 0 5 4 9 241

0 0 0 0 0 381

4 5 58 127 194 1,115

Force Motors Ltd 0 4 30 75 109 2,180

131 91,912 29,105 121,148 1,655,659

0 8,018 4,453 12,471 168,043

38 15,379 4,095 19,512 231,957

0 52,451 26,898 79,349 1,053,264

68 90,496 28,813 119,377 1,408,475

0 88 49 137 38,567

0 301 28 329 39,847

0 725 95 820 250,212

0 1,230 52 1,282 254,621

1,051 2,127 3,245 1,646 8,069

77 177 314 86 654

72 63 356 92 583

687 1,056 2,885 1,128 5,756

987 1,860 3,766 1,630 8,243

25 0 2 5 32

16 0 13 0 29

143 0 43 7 193

141 4 321 117 583

12,703 14 53 10,987 123 174 24,054

1,374 23 0 1,193 30 41 2,661

1,397 NA 0 1,420 19 47 2,883

6,622 23 9 7,275 128 297 14,354

10,101 14 43 9,355 101 179 19,793

91 0 0 327 0 0 418

437 NA 0 754 0 0 1,191

792 0 0 1,829 38 0 2,659

2,292 0 0 2,950 11 0 5,253

109 32,232

2 3,317

20 3,486

29 20,139

106 28,142

0 450

0 1,220

0 2,852

0 5,836

1,739 2,354 10,230 12,047 26,370

165 250 1,734 1,374 3,523

212 286 2,067 2,022 4,587

696 1,812 10,044 8,155 20,707

1,674 2,108 12,614 11,889 28,285

39 52 137 32 260

8 0 170 72 250

220 120 776 317 1,433

154 115 1,428 370 2,067

11,014 26,436 2,135 39,585

883 3,065 86 4,034

736 2,734 301 3,771

5,664 16,433 451 22,548

8,796 20,616 1,677 31,089

202 386 80 668

541 496 45 1,082

1,210 2,478 579 4,267

2,231 3,129 335 5,695

13,883 2,944 0 370 31,893 520 1 49,611

1,518 349 0 0 4,079 29 4 5,979

1,112 460 0 10 3,726 51 0 5,359

7,261 1,305 0 0 26,952 185 4 35,707

13,947 2,975 0 57 31,105 457 12 48,553

0 0 0 0 311 10 0 321

0 0 0 0 294 0 0 294

214 0 0 0 1,613 63 0 1,890

0 0 0 0 1,420 4 0 1,424

5,248 98 NA 136 101

27 0 NA 0 27

442 1 NA 24 0

636 0 NA 0 110

5,282 50 NA 28 83

0 0 NA 0 0

5 0 NA 0 0

0 0 NA 0 0

1 - 15 December 2010

Auto Monitor

SIAM DATA

Category Segment/Subsegment Manufacturer.

Production For the month of October 2009

For the month of October

Domestic Sales Cumulative April-October

Exports For the month of October

Cumulative April-October

08-09

09-10

2009

2010

08-09

09-10

2009

2010

08-09

09-10

Tata Motors Ltd 958 2,921 4,988 VE CVs - Eicher 21 70 128 VE CVs - Volvo 51 80 335 Total 1,083 3,258 5,892 7,565 7,692 43,162 Total B3 B4: Max mass over 16.2 tn - Haulage tractor (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 703 32 1,464 Ashok Leyland Ltd Tata Motors Ltd 0 0 1 Total 703 32 1,465 Ashok Leyland Ltd 223 64 566 78 40 330 Asia Motor Works Ltd Tata Motors Ltd 0 0 0 VE CVs - Eicher 2 7 2 VE CVs - Volvo 0 14 0 Total 303 125 898 1,006 157 2,363 Total B4 Total M&HCVs (Goods Carriers) 16,880 16,683 93,563 Total M&HCVs 20,649 20,762 117,179 2: Max mass upto 5 tonnes LCVs A: Passenger carriers A1: Max mass upto 5 tn (M2(A2)) (a): No of seats over 13 Force Motors Ltd 235 593 2,881 Hindustan Motors Ltd 0 0 1 Mahindra & Mahindra Ltd 286 0 1,960 Mahindra Navistar Automotives Ltd 0 192 0 Tata Motors Ltd 225 200 2,643 Total A1 746 985 7,485 A2: Max mass 5-7.5 tn (b): No of seats up to & over 13 Ashok Leyland Ltd 76 58 523 Force Motors Ltd 0 0 103 Mahindra & Mahindra Ltd 30 0 1,803 Mahindra Navistar Automotives Ltd 0 59 0 Swaraj Mazda Ltd 116 86 1,166 Tata Motors Ltd 866 824 8,747 VE CVs - Eicher 120 126 1,340 Total 1,208 1,153 13,682 1,954 2,138 21,167 Total LCVs (Passenger Carriers) B Goods Carrier B1: Max mass not over 3.5 tn Force Motors Ltd 264 669 1,454 Hindustan Motors Ltd 18 44 144 Mahindra & Mahindra Ltd 5,921 9,793 39,673 Piaggio Vehicles Pvt.Ltd 988 435 6,160 Tata Motors Ltd 10,897 16,491 73,168 Total 18,088 27,432 120,599 B2:Max mass 3.5-5 tn 195 106 981 Force Motors Ltd Mahindra & Mahindra Ltd 158 0 658 Mahindra Navistar Automotives Ltd 0 0 0 Tata Motors Ltd 496 505 2,168 Total 849 611 3,807 B3: Max mass 5-7.5 tn Ashok Leyland Ltd 0 0 0 Force Motors Ltd 13 3 85 Mahindra & Mahindra Ltd 485 0 2,052 Mahindra Navistar Automotives Ltd 0 398 0 Swaraj Mazda Ltd 121 171 1,043 Tata Motors Ltd 2,077 2,038 12,906 VE CVs - Eicher 386 622 2,468 Total 3,082 3,232 18,554 22,019 31,275 142,960 Total LCVs (Goods Carriers) Total LCVs 23,973 33,413 164,127 Total Commercial Vehicles 44,622 54,175 281,306 Two Wheelers A: Scooter/Scooterette, Wheelsize not over 12’’ A1: Engine Capacity less than 75cc Mahindra Two Wheelers Ltd 0 1,497 0 TVS Motor Company Ltd 2,737 2,162 14,607 Total 2,737 3,659 14,607 A2: Engine capacity 75-125 cc 245 0 3,448 Bajaj Auto Ltd Hero Honda Motors Ltd 12,999 28,464 114,545 Honda Motorcycle & Scooter India (Pvt) Ltd 39,648 82,890 393,408 Mahindra Two Wheelers Ltd 5,722 16,554 20,036 Suzuki Motorcycle India Pvt Ltd 10,234 19,700 66,668 TVS Motor Company Ltd 25,334 42,374 164,937 Total 94,182 189,982 763,042 A3: Engine capacity 125 -250 cc 0 0 0 Honda Motorcycle & Scooter India (Pvt) Ltd LML Limited NA NA NA Mahindra Two Wheelers Ltd 0 0 763 Total 0 0 763 96,919 193,641 778,412 Total Scooter/Scooterettee B: Motorcycle/Step-Through: Wheel size more than 12” B2: Engine capacity 75-125 cc Bajaj Auto Ltd 142,673 179,367 691,332 Hero Honda Motors Ltd 326,221 418,549 2,393,855 Honda Motorcycle & Scooter India (Pvt) Ltd 0 16,914 30 India Yamaha Motor Pvt Ltd 6,019 5,246 43,661 Mahindra Two Wheelers Ltd 0 3,350 0 TVS Motor Company Ltd 38,163 53,635 263,724 Total 513,076 677,061 3,392,602 B3: Engine capacity 125-250 cc 83,595 165,100 618,553 Bajaj Auto Ltd Hero Honda Motors Ltd 14,329 27,738 140,685 Honda Motorcycle & Scooter India (Pvt) Ltd 21,952 51,968 262,684 India Yamaha Motor Pvt Ltd 22,333 28,930 113,347 LML Limited NA NA NA Suzuki Motorcycle & Scooter India (Pvt) Ltd 5,808 5,656 28,894 TVS Motor Company Ltd 17,193 23,411 103,588 Total 165,210 302,803 1,267,751 B4: Engine capacity over 250 cc 0 0 0 Honda Motorcycle & Scooter India (Pvt) Ltd India Yamaha Motor Pvt Ltd 0 0 0 Royal Enfield (Unit of Eicher Ltd) 4,486 4,549 31,366 Total 4,486 4,549 31,366 682,772 984,413 4,691,719 Total Motor Cycles/Step-Throughs C: Mopeds: Engine capacity <75 cc, wheels over 12” TVS Motor Company Ltd 46,692 61,272 322,607 Total 46,692 61,272 322,607 D: Electric two Wheelers 0 NA 2,549 Electrotherm (india)Ltd TVS Motor Company Ltd 0 0 18 Total 0 0 2,567 826,383 1,239,326 5,795,305 Total Two Wheelers 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 510 1,060 2,110 Bajaj Auto Ltd 29,732 40,248 172,661 Force Motors Ltd 54 0 108 Mahindra & Mahindra Ltd 3,175 3,998 16,775 Piaggio Vehicles Pvt.Ltd 11,766 14,684 75,624 Scooters india Ltd 210 321 1,489 TVS Motor Company Ltd 1,125 3,431 6,520 Total 46,572 63,742 275,287 A2: No.of seats including Driver exceeding 4 but not exceeding 7 & Max.Mass exceeding 1.5 tonnes Force Motors Ltd 96 0 483 Mahindra & Mahindra Ltd 0 751 30 Scooters india Ltd 194 175 1,489 Total 290 926 2,002 46,862 64,668 277,289 Total Passenger Carrier B: Goods Carriers B1: Max.mass not exceeding 1 tonnes Atul Auto Limited 741 742 3,841 Bajaj Auto Ltd 1,166 173 5,777 Mahindra & Mahindra Ltd 1,314 763 7,787 Piaggio Vehicles Pvt.Ltd 4,155 6,049 27,516 Scooters india Ltd 215 430 1,669 Total 7,591 8,157 46,590 B2: Others 118 0 723 Force Motors Ltd Mahindra & Mahindra Ltd 3 200 18 Piaggio Vehicles Pvt.Ltd 0 14 0 Scooters india Ltd 218 83 1,455 Total 339 297 2,196 7,930 8,454 48,786 Total Goods Carrier Total Three Wheelers 54,792 73,122 326,075 Grand Total of all Categories 1,122,788 1,625,851 7,664,000

24,990 297 517 31,387 80,998

724 11 51 840 6,819

2,042 50 35 2,594 7,953

4,403 143 449 5,741 41,448

14,246 274 422 20,385 68,938

43 0 0 43 364

243 0 0 243 537

147 12 0 164 2,054

445 0 0 445 1,869

0 0

27 27

76 76

70 70

433 433

1,946 0 1,946 2,897 458 0 55 93 3,503 5,449 152,402 184,634

605 343 948 202 54 464 0 4 724 1,672 16,048 19,365

193 526 719 425 82 769 6 9 1,291 2,010 18,321 21,807

1,372 2,435 3,807 985 316 2,911 32 38 4,282 8,089 92,792 112,931

2,197 4,684 6,881 2,939 444 6,153 52 80 9,668 16,549 144,861 173,003

5 0 5 0 0 0 0 0 0 32 1,324 1,774

15 0 15 0 0 0 0 0 0 91 1,960 3,180

108 0 108 59 0 10 0 0 69 247 8,001 10,853

45 0 45 25 0 0 0 0 25 503 10,134 15,970

4,838 4 0 1,983 2,107 8,932

248 0 213 0 364 825

721 0 0 258 189 1,168

2,851 4 1,702 0 3,231 7,788

4,739 4 0 1,953 2,924 9,620

13 0 1 0 5 19

12 0 0 0 17 29

71 0 112 0 25 208

84 0 0 0 169 253

635 151 0 1,499 1,842 8,441 1,796 14,364 23,296

83 5 70 0 103 835 102 1,198 2,023

39 3 0 86 188 919 121 1,356 2,524

403 103 1,774 0 994 7,993 1,095 12,362 20,150

404 137 0 1,460 1,770 8,131 1,579 13,481 23,101

10 0 24 0 0 98 56 188 207

11 0 5 0 3 213 22 254 283

176 0 108 0 21 900 292 1,497 1,705

73 0 12 0 24 1,285 245 1,639 1,892

3,737 281 61,726 5,941 95,919 167,604

265 8 6,051 997 10,262 17,583

712 33 9,108 558 12,754 23,165

1,366 125 36,622 6,160 65,877 110,150

3,566 242 56,136 5,571 79,455 144,970

0 0 569 6 948 1,523

0 0 1,378 0 2,729 4,107

4 0 2,328 34 3,921 6,287

8 0 5,737 12 13,494 19,251

704 0 1,086 4,694 6,484

220 140 0 433 793

123 0 78 425 626

1,020 652 0 933 2,605

718 0 1,124 4,176 6,018

0 0 0 12 12

7 0 0 129 136

9 0 0 48 57

7 0 0 419 426

24 128 0 2,165 759 12,987 3,564 19,627 193,715 217,011 401,645

0 14 418 0 122 2,394 306 3,254 21,630 23,653 43,018

0 13 0 361 104 1,827 408 2,713 26,504 29,028 50,835

0 70 1,582 0 963 13,649 1,863 18,127 130,882 151,032 263,963

0 125 0 2,121 511 11,178 2,648 16,583 167,571 190,672 363,675

0 0 70 0 11 168 50 299 1,834 2,041 3,815

0 0 52 0 40 257 70 419 4,662 4,945 8,125

0 2 471 0 298 1,206 404 2,381 8,725 10,430 21,283

0 4 116 0 240 1,895 473 2,728 22,405 24,297 40,267

8,336 11,752 20,088

0 2,576 2,576

1,130 2,069 3,199

0 14,477 14,477

7,108 13,814 20,922

0 0 0

0 184,631 529,334 90,372 121,531 247,455 1,173,323

293 12,292 35,486 6,804 10,183 24,712 89,770

0 27,085 79,672 17,410 19,747 41,520 185,434

3,202 111,811 384,082 22,468 66,550 161,476 749,589

27 176,950 520,466 82,203 121,493 240,998 1,142,137

0 672 2,860 68 20 749 4,369

0 1,288 947 132 0 1,070 3,437

624 3,044 7,378 617 61 5,820 17,544

0 8,568 7,654 986 90 9,689 26,987

0 NA 0 0 1,193,411

0 NA 0 0 92,346

0 NA 0 0 188,633

287 NA 290 577 764,643

0 NA 68 68 1,163,127

0 NA 0 0 4,369

0 NA 0 0 3,437

0 NA 133 133 17,677

0 NA 0 0 26,987

1,123,793 2,663,805 113,841 46,455 4,472 371,370 4,323,736

107,674 319,357 0 6,498 0 32,272 465,801

113,673 437,088 14,475 7,303 2,664 53,057 628,260

415,691 2,351,458 13 39,218 0 214,442 3,020,822

711,887 2,595,901 104,919 45,790 2,664 295,301 3,756,462

52,930 7,660 1 360 0 7,143 68,094

59,422 11,673 2,562 364 0 7,820 81,841

296,451 49,225 14 1,859 0 47,056 394,605

388,916 63,370 11,313 6,050 0 60,202 529,851

920,300 182,515 318,322 152,463 NA 24,384 142,025 1,740,009

71,437 13,119 17,932 20,381 NA 5,666 12,948 141,483

126,263 27,183 45,912 24,488 NA 5,692 14,741 244,279

507,321 135,801 230,553 100,821 NA 28,662 78,845 1,082,003

726,820 173,568 288,232 111,314 NA 24,159 81,927 1,406,020

17,640 1,056 3,789 4,015 NA 112 4,102 30,714

30,440 1,236 5,394 5,096 NA 0 8,615 50,781

112,682 5,039 33,001 25,763 NA 695 23,584 200,764

214,038 7,179 30,923 46,338 NA 449 56,167 355,094

0 0 29,773 29,773 6,093,518

0 0 4,544 4,544 611,828

0 0 4,271 4,271 876,810

6 8 29,999 30,013 4,132,838

0 23 28,235 28,258 5,190,740

0 0 52 52 98,860

0 0 122 122 132,744

0 0 975 975 596,344

0 0 1,471 1,471 886,416

404,707 404,707

45,791 45,791

62,384 62,384

320,207 320,207

400,266 400,266

472 472

546 546

2,442 2,442

4,497 4,497

0 0 0 7,691,636

0 0 0 749,965

NA 0 0 1,127,827

2,482 229 2,711 5,220,399

NA 0 0 6,754,133

0 0 0 103,701

NA 0 0 136,727

50 0 50 616,513

NA 0 0 917,900

5,449 250,141 0 23,608 88,641 2,305 22,123 392,267

514 16,083 24 3,044 11,387 201 890 32,143

1,034 20,309 0 4,041 13,316 384 2,001 41,085

2,113 96,372 72 16,820 73,961 1,499 6,094 196,931

5,355 117,633 5 23,030 80,412 2,318 14,334 243,087

0 13,442 0 0 392 0 22 13,856

60 20,525 0 280 1,636 0 1,448 23,949

11 76,980 0 56 2,294 0 322 79,663

139 138,490 0 1,338 8,880 0 6,870 155,717

84 2,169 1,483 3,736 396,003

21 0 186 207 32,350

0 333 107 440 41,525

179 210 1,472 1,861 198,792

26 1,549 1,352 2,927 246,014

42 0 0 42 13,898

0 0 0 0 23,949

308 0 0 308 79,971

84 0 0 84 155,801

4,968 1,963 7,128 33,663 2,471 50,193

738 956 1,087 4,274 205 7,260

724 206 739 6,018 466 8,153

3,859 5,617 7,835 27,799 1,659 46,769

4,984 1,737 7,073 33,119 2,429 49,342

0 0 8 21 0 29

0 0 16 110 0 126

16 0 80 188 0 284

2 174 168 599 0 943

15 2,462 14 1,151 3,642 53,835 449,838 10,198,778

106 0 0 211 317 7,577 39,927 1,000,953

2 297 0 59 358 8,511 50,036 1,460,655

714 17 0 1,446 2,177 48,946 247,738 6,785,364

106 2,423 0 1,246 3,775 53,117 299,131 8,825,414

0 0 0 0 0 29 13,927 160,010

0 0 12 0 12 138 24,087 208,786

9 0 0 0 9 293 80,264 968,272

0 0 12 0 12 955 156,756 1,369,544

* Exports of Ford indicate CKDs

2010

Cumulative April-October

Auto Monitor

In Person Claude d’Gama Rose assumed the position of Head of Automotive India within the Continental Corporation and Managing Director of Continenta l Automotive Components (India), on 1 January, 2010. In the six years that d’Gama Rose was with formerly Siemens V DO Automotive, now Continental Automotive, as Director and Head of Finance, Controlling and IT, he was closely associated with the transformation of the company from primarily a mechanical instrumentation company serving the two-wheeler market to a full-blown automotive electronics company, offering the complete Continental portfolio in Interiors and Instrumentation, Chassis and Safety and Powertrain to automotive OEMs in India. In this time, he has been involved in setting up an electronics manufacturing plant in Bangalore and in establishing an engineering footprint, both to support the development and manufacture of products for the Indian market as well as to support the global engineering network of Continental. Prior to his entry into the automotive industry, d’Gama Rose was with Siemens, holding management responsibility in several areas. During a ten-year stint in IT, including Head of IT for manufacturing units of Siemens, he directed the process re-engineering in the manufacturing resource planning arena. From the mid-90s, as Head of Business Administration for the Industrial Automation and the Energy segments in Siemens, he led several business restructuring and growth initiatives, until his assignment to the automotive segment in 2003, the start of his automotive career.

1 - 15 December 2010

THE OTHER SIDE

Getting Personal With Claude d’Gama Rose, Managing Director, Continental Automotive Components (India) If not in the auto industry, where would you be? That would depend on whether I followed desire, interest or capability. I guess I would be in academics, social activism or professional sports. But the sequence in the fi rst and in the second is not the same so I will leave that open-ended What car do you drive? What do you dream to drive? I drive a Honda Civic but dream of speeding in a Porsche 911 Carrera Your recent indulgence… None ... the household income allows for indulgence by only one member of the family and that slot has already been booked (I can say this without the risk of being found out as my wife will not read Auto Monitor) What are you currently reading? I read mainly fiction. I am currently reading The Long Goodbye by Raymond Chandler, a crime writer, who died in 1959. Before that I read Rabbit is Rich by John Updike, who died earlier this year. However, death is not a prerequisite in my choice of authors. I enjoy reading JM Coetzee, Peter Carey, Milan Kundera – all fiction-writers What do you do when not talking business? What’s your favourite pastime? I am a sports fiend. My wife would say I am a TV addict. Put together one would describe my favourite pastime as watching sports on TV. But that’s too mundane; I see it as vicarious participation in all forms of championship sport – F1 racing, Champions League soccer & IPL. My wife doesn’t appreciate the difference but I hope Auto Monitor readers do Outdoor activity you would miss office for… Now that’s a difficult one after describing the passive nature of my sports activities. What I would miss office for is sky-diving, bungee-jumping, anything that is not remotely cerebral. Of course, I have done neither (because I would not miss office!). Sometimes though, when things get really stressful at work, one does experience something similar to

free fall at the desk of the Managing Director itself! Where did you go for your last holiday? To Kabini. It was fabulous. We saw several migratory bird species at the lake before they started their journey back to Central Asia and elsewhere. We saw several elephant herds, which I guess is not unusual for Nagarahole. We had seen wild elephants before but not in the numbers that we did in Nagarahole. Unfortunately, we did not see any pack of dhol, but were blessed with the chance of seeing a leopard after following its path in the bush. You can feast your eyes on predators in a zoo or park, see them laze in full view; sometimes strut their majesty before you. But when you see an elusive big cat in the wild, just a glimpse, almost a shadow in the bush, you feel rewarded, almost chosen. I’m sure we would have been disappointed if we had seen no wild animals at all but in actual fact the serenity of the forest, its age, its colour and its music, should have been reward in itself. We have no idea of what we destroy when we intrude on the forest You get upset when... I see people with a huge amount of talent throw it all away by allowing their egos to get in the way. I see people with enormous capability underperform by neglecting discipline and rigour in what they do. I see people hiding their underachievement behind over articulation... and others not knowing or caring about the difference What is the one thing you would like to change about yourself? Manage my time more decisively. Accept that 24 hours is more than enough to do all the things I want to do but imagine, claim, complain there is no time for. Get home on time. Enjoy a full weekend without feeling guilty if I don’t login to my mailbox. Reconnect with old friends (not on Facebook!), read, and travel... seems like a lot of things, but it really is only one thing. Best thing to have happened to you… Accepting the responsibility of being a husband and a parent

Illustration: Sachin Pandit

An experience I won’t forget… The birth of my fi rst child. It was a caesarean delivery after a difficult pregnancy. So, I was fretting outside the OT, praying that all went well. After what seemed like an eternity, a nurse walked out of the OT with what I remember as an aluminium tray (I could be wrong) cradled in her arms and the baby wrapped in a towel lying in the tray. The nurse did not say a word, just brought the baby for me to see. The baby was wide awake, almost alert, and gazed at me with what I imagined was recognition and trust. I could have lived that moment forever.

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