I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S
Auto Monitor Vol. 11 No. 10
1-15 June 2011
www.automon i tor.co.i n
40 Pages
INTERVIEW
Particulars
Cost of components
‘WE HAVE LEARNT TO NOT BE COMPLACENT... ’ Kevin J Quinlan, VP, Powertrain and GM, Gas Engine Management Systems, Delphi
Pg 08
w/o BI
with BI
60
60
Excise Duty @10%
6
0
Value Add
40
40
Total
106
100
Excise Duty @10%
10.6
10
Net Benefit
4.6
10
` 50
AUTOPINION EXPANSION: TO DO OR NOT TO DO Pg 14
Autolite builds plant in China; enters two-wheeler
NEWS IN BRIEF HMSI to set up third facility in Karnataka
Shambhavi Anand Jaipur
H
onda Motorcycle & Scooter India (HMSI) plans to set up its third facility near Bangalore in Karnataka to be operational by 2013 with an annual capacity of around 1.2 million units. HMSI is currently setting up its second facility in the Tapukara Industrial Area in Rajasthan, which is around 90 km from Delhi and set to become operational by July with an annual production capacity of 0.6 million units. It has redrawn plans in order to double the annual production capacity of the second facility to 1.2 million units by March 2012. The capacity expansion plan will increase HMSI’s total annual production capacity to four million units, including 1.6 million units at the first plant, 1.2 million units at the second plant and 1.2 million units at the third plant, preparing HMSI for further and rapid growth of the market. HMSI’s sales have grown with the 2010 sales of around 1.5 million units (up 40 percent) achieving a record high for ten consecutive years.
DATA MONITOR Domestic Top 5 PV-makers Sector
Apr-10
Apr-11
Change
MSIL
80,034
87,144
8.88%
HMIL
28,501
31,636
11.00%
TML
25,766
27,274
5.85%
M&M ^
13,487
17,162
27.25%
GMI
10,547
10,021
-4.99%
Domestic Top 5 2W-makers Sector
Apr-10
Apr-11
Change
HHML
362,390
504,477
39.21%
BAL
188,021
195,971
4.23%
TVS
125,471
141,572
12.83%
HMSI
99,480
131,669
32.36%
IYM
16,861
25,817
53.12%
Domestic Top 5 CV-makers Sector
Apr-10
Apr-11
Change
TML
28,297
32,851
16.09%
M&M
8,502
7,835
-7.85%
ALL
5,990
4,832
-19.33%
VECV Eicher
2,903
3,353
15.50%
FML
1,278
1,431
11.97%
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
J
aipur based automotive l ig ht i ng ma nu fac t u rer, Autolite, is expanding its base not just within the country but also outside. The `115 crore company is setting up a new assembly plant in the Chinese city of Shanghai. It also is in dialogue with a two-wheeler manufacturer in order to foray into the new segment. ‘We are setting up a plant in a new location in Shanghai. The construction is already in progress and we hope production will commence from November this year,’ Director, Autolite, Adrash Mahipal Gupta told Auto Monitor. The plant will be catering to the requirements of the aftermarket across the world. With the commencement of the Shanghai plant, it will enter into the new product range for the aftermarket. ‘We have not been much into the luxury segment. In the new Chinese plant, we will be manufacturing lighting parts for various models of Mercedes and BMW,’ Gupta informed. The
Adarsh Mahipal Gupta, Director, Autolite India
products will be fi rst supplied to the aftermarket and then to the manufacturers. The company which is better known by the trade name, Autopal, aims to touch the turn over target of `20 crore from their China plant in the fi rst year and `45 crore in the second year of operation. Autolite chose China to set up its manufacturing unit as the cost of production is extremely low in the country. Most of the processes like production of lamps and moulds will be outsourced and will only be assembled at their Shanghai plant. The designs and technolo-
halogen bulbs mainly for four-wheelers. It is planning to foray into the two-wheeler segment. The company is in dialogue with a two-wheeler manufacturer and might start supplying to them if the deal is fi nalised. It has also tied up with a Korean company for this project. The Korean partner supplies modAutolite India ules of LED lights to the gy will be provided by the Indian Indian company. Due to the noncompany to its suppliers. disclosure agreement, the names Being a major supplier to of the two companies could not Tata Motors, the company was be revealed. also invited by the government The lighting manufacturer Jharkhand to set up a shop is also eyeing some acquisition there. But the plan has not matein the western part of India. rialised yet. It already has two Shipping to around 80 countries, manufacturing units in Jaipur, it earns 32 percent of the total revRajasthan, one dedicated for enue from exports. Exports have each, head lamp and the other declined due to the increased for halogen lamp, in addition to domestic demand. Its major some ancillary units. Its plant in clients include Tata Motors, Pantnagar, Uttaranchal is dediMahindra and Mahindra, Bajaj cated to Tata Motors. Auto, Eicher, Swaraj Mazda, Autolite mainly produces head Ashok Leyland among others. It lamps, work lamps, LED lamps, is targeting a turnover of `155 fog lamps, turn signal lamps, crore in FY12.
Scania to set up plant in Bangalore Nabeel A Khan New Delhi
S
wedish heavy truck and bus maker Scania plans to strengthen its presence in India by setting up an assembly plant in Bangalore, besides introducing heavy haulage truck and city and inter-city luxury buses soon. The company, which has been selling mining trucks in the country in partnership with L&T since 2007, has recently formed an Indian subsidiary called Scania Commercial Vehicles India, and will hire 100 people as it gears up to start assembling heavy haulage trucks by next year. ‘India is a strategically important market and we will set up a regional product centre at Bangalore for assembling heavy haulage trucks and city and inter-city luxury buses,’ Scania Commercial Vehicles India, Managing Director, Henrik Fagrenius said. It will start test-
will implement t he g loba l business and product module in India. The company also insisted that it will bring the same product in India without any change. Scania ca n consider a complete manufacturing Scania Commercial Vehicles India, Managing Director unit if the total ing heavy haulage trucks and annual sales is luxury buses for city and interbetween 8,000 to 10,000 units. city in India by September this However, the company did not year. Fagrenius also added that disclose the investment plan, it will import engines and other ‘We have not fi nalised investcomponents for heavy haulage ments on the assembly plant; we truck and buses from Europe, expect to operationalise it by next while the body will be assembled year and about 100 people will be in India. The company is also employed.’ Fagrenius said. He considering the possibility of asserted that having an assembly collaborating with an Indian partplant in place is a fundamental ner. He elaborated that in order requirement for boosting of sales to be successful; the company of vehicles and engines.
In the next five years, Scania is looking at assembling and selling 2,000 trucks, 1,000 buses and 1,500 engines for industrial and marine applications in India from the new plant. Since its onset in 2007, the company has sold about 600 mining trucks in India. Its heavy trucks are in the range of 220 horse power to 730 horse power and it will decide which one to bring in India after the tests. However, Scania is open to continue its association with L&T as its distribution partner for the heavy haulage trucks and luxury buses. ‘For Scania, L&T will continue to play an important role especially for sales and service in the Indian construction equipment market. Our own presence in the country will also strengthen L&T’s position, since the company’s Scania customers will benefit from a larger range of models, shorter delivery times and higher service availability,’ Fagrenius maintained.