Auto Monitor - 1-15 November 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. 20

1-15 November 2010

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

INTERVIEW ‘WE ARE CONSTRAINED, NOT BY TECHNOLOGY, BUT BY POLICY REGIMES IN MARKETS WHERE WE OPERATE’ Lennart Jonsson, CTO and Director R&D, Eaton

52 Pages

` 50/-

AUTOPINION TRANSFER PRICING ISSUES IN AUTOMOTIVE INDUSTRY

Pg 08

Pg 14

ARCI leading public-private partnership initiatives on automotive lightweighting

NEWS IN BRIEF

Shobha Mathur Chennai

Volvo Buses launches 8400 city bus Volvo Buses recently launched the new Euro IV ready, Volvo 8400. The fi rst batch of the facelifted city bus was delivered to the Bangalore Metropolitan Transport Corporation in Bangalore and the Kerala State Road Transport Corporation in Kerala. The product is equipped with advanced diesel engine technology allied to exhaust gas after-treatment with Selective Catalytic Reduction, which converts nitrogen oxides into nitrogen gas and water vapour. A company release stated that the emission of nitrogen oxides (NOx) are typically cut from 5 to 3.5 g/kWh, a reduction of 30 percent, which is quite remarkable for a city bus.

DATA MONITOR Domestic Top 5 PV-makers Sector

Sep-09

Sep-10

Change

MSIL

71,594

95,148

32.90%

HMIL

27,803

31,751

14.20%

TML

22,420

27,987

24.83%

M&M^

15,296

16,537

8.11%

GMI

7,614

8,591

12.83%

Domestic Top 5 2W-maker Sector

Sep-09

Sep-10

Change

HHML

391,225

423,553

8.26%

BAL

183,304

230,945

25.99%

TVS

132,614

165,418

24.74%

HMSI

81,516

118,215

45.02%

IYM

26,394

24,133

-8.57%

Domestic Top 5 CV-makers Sector

Sep-09

Sep-10

Change

TML

27,719

31,624

14.09%

ALL

4,809

9,513

97.82%

M&M

7,363

9,255

25.70%

VECV Eicher

2,316

3,665

58.25%

FML

1,120

1,342

19.82%

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

arious public-private-partnership (PPP) initiatives are currently underway in the country to develop technologies and a knowledge base about lightweighting, which is fast becoming a norm among vehicle and auto part makers. Hyderabad-based International Advanced Research Centre for Powder Metallurgy & New Materials (ARCI) is coordinating such an exercise. It involves R&D consortium projects for light weighting, established under the auspices of the Core Group on Automotive R&D (CAR), now known as Collaborative Automotive R&D. ARCI is an autonomous R&D Centre under the Government of India’s Department of Science and Technology. The initial phase of the fi rst pre-competitive lightweighting consortium project that was completed this year over a fouryear period, has harnessed tailor welded blanks and hydroforming technologies. It created a knowledge base that is now awaiting deployment in terms of design

and fabrication of the dies for components and can be deployed in a variety of vehicles spanning two-wheelers to four-wheelers, according to ARCI officials. ‘Automobile manufacturers around the world have increased use of lightweight materials like aluminium and plastics in conjunction with steel. Typical parts include doors, hood, roof and floor. Presently, Indian OEMs do not use these dissimilar materials in joining combinations, as the process know-how and basic performance data of such joints is not available,’ said Director, ARCI and Chairman, CAR Panel on Materials and Manufacturing, G Sundararajan.

Joining Technologies A second consortium technology project that is currently in the evaluation stage has also been formulated under the CAR programme to develop and apply joining technologies for dissimilar material combinations (a luminium-steel, a luminium-plastic and steel-plastic) in body-in-white parts. It would be coordinated by the ARCI. The project is being planned along with the development of

Laser Welding System at the Advanced Research Centre for Powder Metallurgy & New Materials

suitable non-destructive testing methods that do not break down the component while testing it for defects. Instead, the production line would contain a device that would identify the part defect while in the production stage and help correct aberrations. The project would be carried out over a two-year period and would be supported by the Technology Development Board of the Department of Science and Technology, who would also pro-

Precision Camshafts looking to establish JV in China Abhishek Parekh Mumbai

Contd. on P37

Contd. on P27

India, UK in transport MoU

recision Camshafts, a leading camshafts manufacturer catering to passenger cars and utility vehicle segments, is looking for a local partner in order to establish a presence in China and grow its business in the largest automobile market in the world. The Solapur-based company is in talks with local JVs of its existing customers including Ford, General Motors and Hyundai to supply locally at the insistence of the potential customers. ‘The potential customers in

vide the `12 crore funding for the project. The project would evolve an optimal technology and quality management concept for the automotive industry. The two projects received a funding of `5 crore from CAR. The consortium for the second project includes four Indian R&D institutions (ARCI, Hyderabad; IISc Bangalore; IIT Madras and ARAI, Pune) along with two automotive companies (Tata Motors

Precision Camshafts shopfloor in Solapur; (Inset) passenger car camshafts

ndia has signed a Memorandum of Understanding with the United Kingdom on cooperation in the road transport and highways sector, wherein both countries would engage in consultations and will exchange information and best practices in the areas of motor vehicle testing, driver training and delivering and maintaining of highway networks. The MoU was signed by Minister of Road Transport and Highways, Kamal Nath and his British counterpart, Secretary of State, Department of Transport, UK, Philip Hammond in London recently.

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CONTENTS CORPORATE Tata Aria shifts multi utility vehicle paradigm

Delphi-TVS to commence production of rotary products in November

Australian companies enter into contracts with Indian counterparts

The Aria heralds a new beginning for customers seeking people movers with limited off-roading potential and comfort & convenience features that are segment firsts in several regards

Delphi-TVS Diesel Systems is gearing up to kick start production of its rotary fuel injection system, meeting Trem 3 and Trem 3A emission norms for JCB India

After Australian Auto Mission’s India tour early this year, four Australian suppliers have achieved business success with two bagging initial contracts for exports from Australia

Talbros Automotive to shift capacity for aftermarket to Sitarganj facility 17 Talbros Automotive is in the process of shifting manufacturing for the aftermarket segment to the newly set up facility at Sitarganj in Uttarakhand

SkodaAuto India to get Suzuki assistance on sub-Fabia small car

SkodaAuto India is planning to showcase an all-new small car line based on a platform jointly developed by VW and Suzuki in the Auto Expo 2012

NEI to spend `1,000 crore on expansion, eye acquisition

National Engineering Industries and the manufacturer of NBC bearing for automotive and industrial segments is scouting for acquisition in a turnover range between `50-100 crore

Bosch lines up aggressive portfolio for two-wheeler segment

Bosch India is looking to make a major entry in the two-wheeler segment with the launch of Antilock Braking Systems (ABS) and Electronic Stability Program (ESP) for two-wheelers

GLOBAL WATCH Overcapacity concerns as Chinese OEMs plan higher production

Continental creates ‘Simplify Your Drive’ technology

Volvo Trucks initiates field testing with methane diesel gas

Fiat Group to invest $6 billion in Brazil by 2015

Booming auto sales in China have spurred manufacturers to step up production, leading to concerns over ‘blind investment’ and overcapacity in the sector

Continental of Germany has developed a system that offers, with a push of a button, a sports car, eco-friendly car and more conventional car – all in one

Volvo Trucks will initiate public field testing with methane diesel trucks that can give up to four times longer driving range compared to most traditional gas trucks

Fiat Group will invest 10 billion reais ($6 billion) in Brazil by 2015 in operations to enhance production of cars, auto parts and agricultural machinery

THE OTHER SIDE

INTERVIEW

24 08

‘EVs, hybrids to remain niche products over next decade in India’

‘In-house engine assemblies to be cost competitive’

Senior Director, Deloitte Touche Tohmatsu India, Kumar Kandaswami talks to Auto Monitor on the future of electric and hybrid vehicles in India and in other developed markets

Sanjay Soni, Managing Director, Logix Microsystems

Managing Director, Logix Microsystems, Sanjay Soni loves his daily game of golf and is a striving photographer

Chief Executive Officer, AIPL, Aravind Bharadwaj says that the company has conceptualised the building blocks for the driver integration system for CVs

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Auto Monitor

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Auto Monitor

1 - 15 November 2010

CORPORATE Overall half-year sales: reason to cheer

Tata Aria shifts multi utility vehicle paradigm Archit Revandkar Mumbai

ata Motors’ Aria marks a paradigm shift in the people carrier segment of multi utility vehicles sold in the domestic market. Typically, the six to eight seaters’ territory had little to offer, in terms of choice. Toyota’s Innova retained its segment leadership despite the aggressive Xylo push by Mahindra & Mahindra. General Motors’ Tavera on the other hand appeared to have lost the battle, raised by emission norms and new entrants like the Sonalika’s Rhino. The Aria in that context, heralds a new beginning for customers seeking people movers with limited off-roading potential, a capable safety detail, comfort and convenience features that are segment and market fi rsts in several regards. Looking closely at the brand tally, the SIAM data offers a combined count, on the basis of seating capacity and M&M clearly has the largest selling portfolio by those standards. In the fi rst six months of FY11, M&M sold 46,077 units of Scorpio, Bolero, soft and hard tops on those platforms and the Xylo in the six-seven seaters M1-B1 category. That’s a near nine percent increase in sales over the same period last year, when it sold 41,881 units. Also in the eight-nine seaters M1-B2 segment, the same portfolio scored 32,800 units in the half year to September 2010, which is a robust 31 percent over the same

period last year, when it sold 25,013 units of the portfolio. Auto Monitor could not independently verify an individual model-wise tally, as OEMs are not obliged to share it. However, several M&M dealers confi rmed that there is a fair bit of disparity in the Scorpio, Xylo and Bolero volumes. Dealers however also confi rm that on a standalone basis, the Innova has absolutely undermined the Xylo as the fi rst option for customers seeking a long and fuss-free ownership experience with lower lifecycle costs. That has in turn cemented the Innova’s leadership position. Toyota sold over 18,000 units of the flagship MUV in the half year to September 2010, a staggering 63 percent over 11,000 sold in the same period last year. That is just the six- and seven-seater category, where the second row of seating comes with captain seats arrangement. Take that to the eight-seater territory and the volumes for the half-year to September 2010 were 13,567 units as against 11,862 units. In H1FY11, Innova clocked a total of 31,567 units single-handed, while the entire M&M portfolio clocked over 75,000 units. General Motors lost out on nearly 30 percent of its pet urban markets, the 13 cities that moved to the BS IV regime effective April 2010. On the face of it, the loss seems like a consequence of skewed product planning. However, the management is confident of positioning the Tavera as an offering for the

Pawan Goenka, President, SIAM and President - Auto and Farm Equipment Sector, M&M with Vishnu Mathur, Director General, SIAM at the H1FY11 sales update meet, where the industry body revised sales projections for the fiscal (See table below)

rural market, while its LCVs with SAIC would take on the urban mettle shortly. It sold 5,272 units of the Isuzu Panther-based people carrier and the Captiva SUV in the half year to September 2010, which is a marginal increase over 4,898 vehicles sold in the same period last year. Dealers have confi rmed that a BS IV offering is on cards and is powered by the Rhino’s 123 ps Rover-designed engine. Dealers also confi rmed that the pricing action could land it in the `7-8 lakh segment, pitching it against the Xylo. That brings us to the fringe players, like Sonalika with its Rhino and Force Motors, with its poorly engineered applications of the Trax platform. Rhino competes only in the eight-seater space, while the Trax is available in several configurations. In H1FY11, both players posted a combined volume of less than 500 units. It must be noted that both players were the most affected both by emission norms, and a 2010 ARAI circular highlighting a new automotive standard that completely bans

side-facing seats in the domestic market. The combined domestic sales volume of the B1 segments, which also lists SUVs in the six- to eightseater space however, is 138,714 units, which is a stark contrast to the dismal export figures of 1,690 units. This is an indicator of how and why India-based OEMs are not looked up to world-class people carriers, analysts told Auto Monitor. That however, is likely to change with the introduction of the Tata Aria. Powered by a 140 ps, 320 Nm Dicor engine, the Aria is Tata Motors’ tryst with internationalisation of its portfolio. It is also the auto maker’s fi rst all new MUV launch in over a decade, the last one being Safari in 1999. Loaded with features like ABS, EBD, ESP, Adepterra torque on demand driving all four wheels and an airbag detail to vouch for, the Aria is priced at `15.84 lakh, ex-Mumbai for the top-end variant. Volume guidance is a tricky proposition but dealers have confi rmed that the footfall and queries seem to defy the notion that the informed Indian customer would never warm up to a premium priced car carrying the Tata badge. At least two Mumbai

region dealers informed that they have over 20 bookings each, within a span of less than two weeks, converted from over 100 advanced level queries.

Overall Sales Up As far as the more encompassing sales barometer is concerned, the Indian market grew by 27.32 percent from 5,784,411 units in the half year to September 2009 to 7,364,760 units in the same period this year. Passenger cars grew by over a third from 690,434 units in April-September 2009 to 922,281 units for the same period this year, while overall passenger vehicles grew close to 33 percent, reaching 1,176,518 units this year from the previous year’s 885,221 units. In the PV segment, multi purpose vehicles (MPVs) grew the highest at 49.32 percent. Among all vehicle segments, MHCVs grew the highest at 61.6 percent – up from the 93,566 units it clocked in H1FY10 to 151,197 units in the fi rst six months this year. LCVs scored a 26.9 percent jump over the previous year’s 127,379 units, reaching 161,644 units this year. Overall CV segment grew 41.59 percent. The two-wheeler segment grew 25.86 percent, lead by the scooters and scooterettes subsegment, which increased 44.95 percent from the previous year’s numbers. Motorcycles grew 22.52 percent, while mopeds saw a jump of 23.13 percent in H1FY11 over H1FY10. Passenger carriers in the three-wheeler segment grew 24.18 percent to lead the segment growth of 19.87 percent. Good carriers grew marginally at 2.54 percent. Overall exports grew 43.61 percent from 808,262 last half year to 1,160,758 units in the half year to September 2010. Every segment, including commercial vehicles, two-wheelers and three-wheelers witnessed handsome growth of 84.01 percent, 52.33 percent and 99.99 percent respectively. But the cause of worry for the industry was the passenger vehicle segment that grew a meagre 1.48 percent. While UVs jumped 105.84 percent, passenger car exports in the fi rst six months this year was near flat over the same period last fi scal, growing just 0.92 percent.

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Auto Monitor

1 - 15 November 2010

INTERVIEW

â&#x20AC;&#x2DC;We are constrained, not by technology, but by policy regimes in markets where we operateâ&#x20AC;&#x2122; In a recent interaction with Auto Monitor, Executive Vice President and Chief Technology Officer, Eaton, Lennart Jonsson, who recently took over this new role of directing the R&D efforts at the $11.9 billion global supplier, outlines his priorities for Eaton and the role it would play in the emerging automotive and electrical landscape. Excerpts: Abhishek Parekh What are your key priorities as technology head? We believe in the presence we have in terms of power boosting technology. Transmissions, where we have a major presence, play a critical role in power management and distribution in combustion or hybrid technology. We will continue to invest

in technologies and solutions to grow our presence in this area. Additionally, we are optimistic on superchargers, which will play a very prominent role in emission control and performance enhancement compared to turbo charging technologies, which are predominant now. There are other emerging areas we are look-

ing at for deeper engagement. We are also looking for inorganic growth through technology acquisitions to aid our growth in newer areas. We will continue to focus on technologies serving the commercial vehicle segment as opposed to personal transportation. There are lot of variations in usage of commercial vehicles, opening up areas where we could contribute and gain advantage over the competition. We perceive a migration from combustion to plug-in hybrids to all electric vehicles. We are preparing ourselves for this migration to play out in vehicle technologies of the future. Combustion engine or hybrids backed by combustion engines are likely to play key role in vehicles for some time to come. We are established in terms of capabilities for electric hybrid technologies and need to build up on our

procurement policies or on any other direct or indirect efforts. What are the plans for research & development centre in India? The Indian tech centre was started to mainly support the hydraulics business for Eaton. Our technical centre in Pune is a success story with Eaton and we have to build up on it. We are planning another technical centre in addition to the one we have in Pune. The current engineering and research centre is a part of a special economic zone. The arrangement (location) confers tax advantages to us but also requires the facility to meet export obligations. The second technical centre that we are planning to set up in India would mainly focus on our local developmental activities in India, in addition to assisting Eatonâ&#x20AC;&#x2122;s global requirements.

We perceive a migration from combustion to plug-in hybrids to all electric vehicles. We are preparing ourselves for this migration to play out in vehicle technologies of the future. Combustion engine or hybrids backed by combustion engines are likely to play key role in vehicles for some time to come

Lennart Jonsson, Chief Technology Officer and Director R&D, Eaton

existing strengths. We are less constrained by technologies and more constrained by G over n ment pol icies, which is likely to drive the future development of hybrid or electric technologies. The policy push is not only playing out in our industrial business but also very much in solar photovoltaic and electrical businesses. This policy push could be in terms of fuel pricing policies, tax reliefs or subsidies on R&D, local development and

The existing technical centre has been mainly assisting Eaton in industrial business. This was mainly because of legacy reasons, as the Indian centre had been traditionally engaged in activities supporting industrial business. Moreover, our activities in the R&D for electrical business were supported by the technical centres in China and Europe. The second engineering centre would gradually expand research & developmental activities in industrial and electrical markets. What is the scope of activities in the Indian technical centre and how will it assist the

global and local requirements of Eaton? One of the major trends gathering pace is the electrification of systems and we are seeing increasing electrification of our hydraulics systems. We are witnessing significant changes in power and energy management across products for various applications. Therefore, the activities in the electrical side of our business not only have to be closely aligned with our overall R&D activities, but also closely cooperate with our industrial hydraulics business. We are gearing up to play a major role in many of the emerging technological areas. What are these emerging areas, where Eaton perceives a major role in the future? We are seeing an increasing trend towards hybrid technologies as opposed to purely electrical or purely mechanical systems. We are hoping to play a major role in the infrastructure for hybrid or electrical technologies. This implies we will provide equipments and technologies for charging stations for electric vehicles, battery management systems for electric and hybrid vehicles among other areas. We are gearing up to increase our presence in the transportation segment as well as helping electric utility companies in power management and energy solutions. For instance, in many of the special purpose vehicles for garbage treatments or servicing power or telecom towers, the engine has to be kept running to operate the lifts on the vehicles. A system, which can provide electrical power to operate the lifts when the diesel engine is shut off, can lead to enormous savings in terms of fuel cost and operational economics of the vehicle. There are couple of critical success factors that can contribute to larger adoption of hybrid technologies. Hybrid technologies have been tested and proven on many personal transportations and this provides a comfort factor to the manufacturers and technology solutions provider. Conventional hybrid technology in transportation typically has light reliance on batteries and continues to draw power from combustion engines. Plug-in hybrids go a step further and draw more power from batteries and as of now, the effect of this larger reliance is not clearly known under actual or real-life conditions. The other major factor that would contribute to wider adoption of hybrids is cost equation. I am not too concerned about the cost factor. There are three levels of power management in any hybrid or electric vehicles. The fi rst level is where the vehicle is charged with 120 vaults requiring around 1500 watts of recharge power. On the second level, a vehicle requires around 240 vaults and a recharge power requirements going upto 3,500 watts. And the most important, from our point of view, is the third level where the recharge requirements goes even higher in case of commercial vehicles and compels power to be drawn from external infrastructure. We are planning to play a major role at the third level in the recharging ecosystem.

EDITORIAL Cracking the export code N

otwithstanding its share in global automobile exports or its position among automobile exporters, the Indian industry is expected to achieve the target of $12 billion by 2014, two years before the target year laid out in the Government’s Automotive Mission Plan 2006-16. A recent study by the Federation of Indian Chambers of Commerce and Industry (FICCI) states that India’s share in the global auto exports market is restricted to just one percent, ranking 22nd in the world and putting the country way beyond other developing markets like Thailand, Mexico, Argentina, Brazil, Turkey and China. For a nation that is considered a manufacturing and exports hub for small, compact cars, these aren’t happy numbers. However, on a positive note, in case of automobiles, exports have more than doubled in the last fi ve years. The Indian industry exported automobiles worth $1.8 billion during FY06, which increased to $4.5 billion in FY10, FICCI stated. By FY16, FICCI estimates, exports by the Indian automobile industry would reach a level of $17.7 billion. Major portion of the total automobile exports from India, read 76 percent, is accounted for by passenger vehicles, followed by two-wheelers. FICCI calculates the CAGR of passenger vehicles and two-wheeler exports by India for the last five years at 31

percent and 24 percent respectively. Significantly though, passenger car exports have been on a downslide for the last few months. In the fi rst six months of the current fi scal, passenger car exports have grown a meagre 0.92 percent, while in the April-August FY11 period, it had grown 4.51 percent. In the fi rst four months of FY11, exports of passenger cars had scored an 8.18 percent growth. For an industry that has been deliberating on not just managing future growth, but sustaining it over a long term, this is a gentle reminder to pull up its shocks. Earlier in August this year, consulting major, Ernst & Young, had released the ‘Vision 2020’ document for the Indian auto component industry. The fi rm is hopeful that exports could grow seven-fold over the next decade, driven by an increase in marketshare of distant low cost countries (LCCs) in key export markets and scale advantages. Readers would recall that in an earlier editorial, I did write that one key concern the industry collectively needs to address is the growing disparity in imports and exports of auto components. From a near equal status about four years back, the industry is importing far more than are exported. Latest numbers put our imports valued at $8.2 billion, while our exports are valued at $3.8 billion only. In fact, imports from China have almost increased four times in the last

one year. E&Y believes by 2020, the Indian industry has the potential to grow exports to the level of $26-29 billion from the current $3.8 billion levels. Western Europe is likely to become a larger market for Indian exporters by that time, with share significantly increasing in the North American market as well. There is an opportunity to tap a potential of `5.4 lakh crore by 2020, with exports contributing `1.3 lakh crore – about a quarter of the total market potential. The Vision 2020 document gives the auto component manufacturers, and the industry as a whole, credible time to redraw strategies for domestic and export business. Experts believe, the new targets are achievable, if opportunities are approached well.

Deepangshu Dev Sarmah deepangshud.sarmah@infomedia18.in

IMAGE of the fortnight

FORTNIGHT’S QUOTES ‘Overall, we are moving from fixing the fundamentals of our business and weathering the downturn to growing the business profitably around the world’ Alan Mulally, CEO, Ford

‘Two years of government support are needed to jumpstart these markets and then the products will grow on their own and take off’

‘There are four or five cases of the Nano catching fire. We are going through a detailed investigation of each of them’

Carlos Ghosn, Chief Executive, Renault and Nissan

Ratan Tata, Chairman, Tata Group

‘We’re still facing a taxrelated hurdle and several legal obstacles on the merger with Porsche’

‘I have very ambitious expansion plans for ALL, and my priority is to fast-track the company’s global thrust through both organic and inorganic modes,’

Martin Winterkorn, Chief Executive Officer, Volkswagen

Dheeraj G Hinduja, Chairman, Ashok Leyland

Auto Monitor Editorial Team Editor: Deepangshu Dev Sarmah Features Editor: Shobha Mathur Principal Correspondents: Abhishek Parekh Archit Revandkar Contributing Editors: Sirish Chandran Bertrand D’Souza

Design & Photography Group Photo Editor & Creative Head: Shiresh R Karrale 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)

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Hyundai launches Santa Fe Nearly three years after it fi rst showed-off its flagship 7-seater SUV at Auto Expo 2008, India’s second largest passenger carmaker Hyundai Motor India (HMIL) launched the Santa Fe at an ex-Delhi tag of `20.95 lakh for the 4X2 variant and `22.95 lakh for the topof-the-line 4X4 variant. Powered by a 2.2 litre DOHC CRDi that makes 197 bhp at 4000 rpm and 420 Nm between 1800 and 2500 rpm, it comes complete with a six-speed manual gear box. The drive line is programmed to be all-wheel till about 40 kmph, beyond which it is predominantly driven by the front wheels, in the 4X4 variant. Both variants come with ESP, cruise control and airbags. Presently, HMIL would import the Santa Fe as a completely built unit. It must be noted that the largest exporter of passenger cars from India, has had little or no success with the domestic sales of the Tuscon, its flagship 5-seater in the global markets. However, in an earlier interaction with Auto Monitor, MD, HMIL, HW Park had suggested that the manufacturer was confident of riding the SUV wave with the Santa Fe as the Indian preference for full sized 7-seater SUVs was commendable.

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1 - 15 November 2010

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Delphi-TVS to commence production of rotary products for JCB in November Shobha Mathur Chennai

tarting November, Chennaibased Delphi-TVS Diesel Systems is gearing up to commence production of its rotary fuel injection system, meeting Trem 3 and Trem 3A emission norms for JCB India. A leading manufacturer of off-highway equipments, JCB India would be rolling out the fi rst tranche of its backhoe loaders fitted with Delphi-TVS rotary products starting January 2011. Delphi-TVS had bagged the order from JCB India a year ago worth an annual `75 crore, including supplies of products for about 36,000 off-highway equipments per annum. It is believed that January 2011 onwards, JCB India would be replacing the old engines in about 80 percent of its machines

with engines manufactured inhouse, and rotary products by Delphi-TVS would be fitted along with them. Normally, rotary products comprise pumps, injectors and fi lters compared to the common rail system that spans a highpressure pump, injector, rail and electronic control unit or brain of the system along with the fi lter. Rotary products are more economical than the common rail system and hence their preference in off-highway vehicles by OEMs. Delphi-TVS would manufacture the said products at its Mannur plant, located 40 km from Chennai, which also manufactures mechanical unit pumps. Expansion is currently underway at both the Mannur plant and the company’s second plant at Pant Nagar, Uttarakhand, which produces rotary pumps. The

Pantnagar plant meets the complete requirements of the Tata Ace, the market leader in small commercial vehicles. Together, the capacities at the two plants would be expanded from 540,000 systems to 660,000 systems due to spiked demand for rotary products from customers.

Product Innovation President, Delphi-TVS, JS Chopra told Auto Monitor that the company has developed a robust, rugged and fuel-efficient rotary fuel injection pump, called DPT (Distributor Pump for Tractors). It was equipped to meet the Trem 3A emission norms for tractors. The Trem 3A emission norms for below 50 hp tractors came into force from 1 October this year. For above 50 hp tractors, emission norms are expected to be enforced from April 2011. Chopra said, ‘Delphi-TVS has the products to meet the requirements of the new emission norms for the above 50 hp tractors as well.’ Production capacity of DPT is now being ramped up to meet major OE demand from customers like Simpson-TAFE, Mahindra & Mahindra’s farm equipment sector and Swaraj Division, Escorts and Indo Farm. Delphi-TVS commenced supplies for Simpson-TAFE four months ago. It also started supplying a few units to M&M’s farm

JS Chopra, President, Delphi-TVS

equipment sector from August this year, but business with M&M is expected to pick up steam next month onwards. Development work on DPT products is also underway for other clients with supplies expected to start by year-end. The entire order for DPTs from tractor makers is likely to run into `25 crore annually in the domestic market. In addition to DPT, the company has also developed a new common rail product family – UPCR (Unit Pump Common Rail system), which offers the benefit of a common rail system at a low

cost, benefiting the spread of this technology to different market segments, said Chopra. ‘An Electronic Control Unit (ECU) for different vehicle applications has also been developed at a competitive price. Delphi-TVS will be introducing these controllers in Unit Pump Common Rail (UPCR) systems and Common Rail Direct Injection (CRDI) systems soon,’ he added. These would service one- to four-cylinder applications in vehicles, besides gensets. The new UPCR system, which has been developed for BS IV applications, would be later upgraded to meet BS V emission norms. This new product line is expected to be in full-fledged production by December 2010.

Expansions On Stream Further, Delphi-TVS is also expanding the capability of its technical centre located at its main plant in Mannur, adding the Transient Dynamometer and Cold Chamber facilities. This will increase the centre’s validation and testing capabilities, enabling it to undertake more advanced and sophisticated work from FY11-end. The technical centre was set up with an investment of `50 crore for undertaking development work for light and medium-duty diesel common rail direct injection systems. An additional `10 crore is now being invested on the new machines and funded primarily through internal accruals. The company currently has three plants. Its common rail products are manufactured at its third plant in Oragadam, near Chennai, which was set up at an investment of `350 crore in 2007. The capacity of the common rail systems plant is also being shored up from 150,000 units to 225,000 units per annum, with expansion likely to be completed by FY11-end. A joint venture between Delphi, USA and the TVS Group, Delphi-TVS supplies fuel injection systems for a wide range of applications including passenger cars, utility vehicles, commercial vehicles, tractors as well as on and off-highway vehicles. With all these new orders and products in its kitty, Delphi-TVS expects to touch a top line of `850 crore by FY11-end from its existing turnover of `750 crore.

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

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AUTOPINION

1 - 15 November 2010

Transfer Pricing issues in automotive industry quite long and precisely this could be the reason that the new entrants in this sector are incurring huge losses, while the established players are earning operating profits. Further, the business model varies depending on the stage of set-up. In the initial years of set-up, it is seen that the Indian subsidiary imports significant amount of raw material and inputs from group entities for manufacturing/ assembly of cars. In fact, the import content could be as high as 80-90 percent in the initial years. In subsequent years of life cycle, the emphasis is more on localisation of inputs which considerably reduced the import content. Thus, there is a gradual shift of sourcing the inputs from abroad to localising them over a period of time, which will considerably impact profitability. Considering the above, the profitability of one auto company may not always be comparable with that of another. Typically, it is observed that most of the auto companies in India demonstrate the arm’s length nature of international transaction by using the Transactional Net Margin Method (‘TNMM’) i.e. by contending that the profitability of the company is comparable with the average profitability of comparable companies in auto industry and thereby, the international transactions with Group companies being at an arm’s length price. Where the operating margins are lower than the industry margins, the differences have been attributed

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operations. On gaining a significant marketshare and after having established a set of loyal customers, the companies may want to increase its prices to set-off the aggressive pricing strategy adopted in set-up years. Every company will have various business strategies and considerations that affect the profitability of the company. All the above factors invariably lead to operating losses in the initial years of operations. The Indian revenue authorities have tendency to link these losses as being attributable to the transfer price for intercompany transactions. Under the TNMM, profitability is the key to demonstrate the arm’s length nature of transaction. The Indian revenue authorities seek to make transfer pricing adjustment merely on the basis of company incurring operating losses without appreciating the economic reasons for incurring losses viz. underutilisation of capacity, market penetration strategy followed in the initial years of operation, etc. This is one of the burning issues, which is being encountered by most of the new entrants in this sector. It is thus important for the company to demonstrate with robust documentation that the losses are not attributable to the transfer prices but are attributable to the other commercial and economic factors. Further, it is imperative for such companies to select the appropriate benchmarking approach with detailed analysis so as to mitigate the transfer pricing risk on account of start-up losses. Here, selection of the right comparables is the most important aspect that needs to be looked into and which has been examined in the following paragraphs.

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2. Selection of comparables

Dinesh Supekar Partner – Price Waterhouse & Co

he Indian automobile industry has been on the growth curve again after having witnessed the severe recession, which impacted the auto industry globally. The sales numbers have been increasing month on month and the future outlook for the industry seems very positive. The strong growth is on account of increasing wealth in the hands of Indian consumers backed by liquidity and availability of easy fi nance schemes to the Indian consumer. The growth trend is evident from the graph (Ref: Exhibit 1). However, it is not just the consumers but also the Indian Government, who wants to become wealthier by earning their share of revenue. Transfer Pricing (TP) is one such measure to increase the tax base. The TP provisions were introduced in India in the Finance Act of 2001 with a view to avoid the erosion of Indian tax base by ensuring that the transactions of Indian companies with their overseas group companies are

Exhibit 1

Auto Sales Trend

4000000 3000000 2000000 1000000 0

Apr-Aug 2009

Apr-Aug 2010

Apr-Aug 2009

Apr-Aug Apr-Aug 2010 2009

Apr-Aug 2010

Passenger Vehicles (PVs)

3 Wheelers Q

Export

13629

10292

51721

111129

172653

181415

Domestic Sales 175056

120744

166680

200258

717706

960886

at arm’s length i.e. transacted at a price at which third parties would have transacted with each other. As transfer pricing is not an exact science, the TP provisions have been subject to controversy since their inception. The Indian automotive (auto) industry has been no exception to this. Most of the auto companies in India, being multinationals (‘MNCs’), have been subject to detailed transfer pricing scrutiny by the Indian revenue authorities. This subject has gained lot of importance for the MNCs operating in India and managing transfer pricing risks is one of the key topics on the agenda of every MNC. Transfer Pricing is fact-specific and entails application of economic principles among other things while arriving at an arm’s length transfer price. Thus, before dwelling into the transfer pricing issues in the auto sector, it may be worthwhile to understand some of the economic nuances of the auto sector so as to appreciate the transfer pricing issues better. The Indian auto sector is very competitive with presence of many players. Some of them are quite established players, being present in India for decades, while some are new entrants to the Indian market. Thus, the Indian auto sector represents a mix of both established Indian-originated companies as well as newly set-up MNCs. The gestation period in this industry is

Apr-Aug 2009

Apr-Aug 2010

2 Wheelers 417237

653851

3632282 4621144

to certain economic reasons such as idle capacity, high import content etc. However, while the revenue authorities have been by and large fi ne with the basic methodology i.e. TNMM, they have contested the arm’s length nature of prices in a number of instances. In this article, we have sought to examine the key issues which auto companies are facing in the process of demonstrating the arm’s length nature of transfer prices. The issues examined are primarily for OEMs i.e. vehicle manufacturers and not auto ancillaries.

1. Acceptability of start-up losses in the auto industry As the Indian economy is growing, more and more global auto companies are setting up their shops in India to tap the Indian market. Typically, in the initial stages, the quantum of transactions with overseas Group entities is significant on account of high capital expenditure for setting-up the manufacturing/ assembly facility and low level of localisation. Most of the companies invest in India with a long-term horizon. This may lead to high underutilisation of capacity. Further, every auto company goes through a business lifecycle. Every product does not become profitable from its inception. Typically, in order to gain marketshare, the auto companies are price-aggressive in the earlier years of

Identification of right comparables for benchmarking, as mentioned earlier, is the key to determining a right transfer pricing approach for OEMs and which can also potentially have a bearing in managing transfer pricing risks. As mentioned earlier, the companies in the auto sector would be in the different stages of lifecycle. Some of them would be quite well-established, while the others are new entrants in this sector. Further, the brand strength of each company would vary. In view of such economic disparity being existent, it would not always be prudent to take Indian car manufacturers as comparable to the Indian operating arm of MNCs car companies. Some of the OEMs, especially those having very high import content would primarily carry out functions in respect of: a) Assembly, and b) Market development. The functional and risk profile of these entities would be different from a full-fledged car manufacturer, who have a significant amount of localisation, and who may therefore not be the right comparables. In this context, a relevant observation was made by the Hon’ble Income-tax Appellate Tribunal (Tribunal) in the case of Skoda Auto India (122 TTJ 699), wherein the Hon’ble Tribunal observed that the level of localisation of Skoda Auto India and the comparable companies differed significantly, while determining the appropriateness of the comparables selected. The other issue relates to inappropriate approach of internal comparability. Quite often auto companies supply fi nished goods to Indian companies in domestic market as well as to its overseas group companies. There could be significant functional and transactional differences with respect to sales in domestic segment and export segment. Lack of comparable data in public domain often leads to a situation, wherein the tax authorities tend to look for internal comparables. The tax authorities often compare the profitability from export sales with prof-

The Indian revenue authorities seek to make transfer pricing adjustment merely on the basis of company incurring operating losses without appreciating the economic reasons for incurring losses

itability from domestic sales and thereby ignoring the geographical differences and other functional differences between the two transactions. A possible remedy for lack of appropriate comparable in India could be by testing the results of the overseas group companies, especially in case of full-fledged car manufacturers, having a relatively lower import content, and who are exposed to market risks. In simpler terms, this means that instead of identifying the Indian comparables, one could look at identifying the foreign comparables and test the margin/ price in the hands of the overseas group companies’ vis-à-vis foreign comparables. While getting such data is not practically easy, it could nevertheless provide a superior alternative to using functionally incomparable domestic car manufacturers, especially in cases where the potential exposure to transfer pricing adjustments could be large.

3. Payment for intellectual property Two of the most important aspects of an auto company are ‘Technology’ and ‘Brand’. These drive the sales of a company and the group. In the auto industry, where technology is very important, rarely one fi nds companies sharing their technology with third parties. Mostly, technology and brand are only shared with group companies. Therefore, it is very difficult to fi nd comparable data at transactional level. Even the public databases do not provide an exhaustive list of uncontrolled transactions. Even if one is able to fi nd an uncontrolled transaction, the question to be answered is that whether two brands or technology that is independent can be comparable to each other. Is the technology of say ‘Honda’ comparable to that of ‘Toyota’? Probably not, and this makes fi nding uncontrolled comparables in auto companies all the more difficult. The emphasis of Indian revenue authorities on transactional level analysis and the difficulty in identifying a comparable uncontrolled transaction to benchmark the payment for intellectual property at a transaction level is a double whammy for most of the tax payers. In the absence of a comparable uncontrolled transaction for benchmarking the said transaction, it is imperative to evaluate other approach of benchmarking these transactions. One example could be adoption of profit split approach to determine the arm’s length price for such transaction.

Contd. on P29 Powered by:

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Australian companies enter into contracts with Indian counterparts Shobha Mathur Chennai

n February this year, an Australian Auto Mission visited India on a whirlwind 10-day tour seeking partnerships with Indian vehicle manufacturers and Tier I suppliers. The Mission had on board, seven auto component suppliers and was led by Australian Automotive Envoy for Asia, John Conomos. A few months later, four of the Australian suppliers have achieved business success with a couple bagging initial contracts for exports from Australia. Others have established representative offices in the country in the expectation of big orders from customers, according to Adil Mohamed, Senior Business Development Ma nager – Automotive (India), Australian Trade Commission. Of the four successful companies, Davis Craig has signed an initial order for prototype parts supplies to OEMs in India. The company has appointed a local representative for marketing their products to various OEMs in the country. The company is a designer-manufacturer of electric fans and electric water pumps for use in petrol, diesel, hybrids, fuel-cell and electric vehicles. T-Mag, another Australian company, has entered into a technical collaboration with a leading Tier I business group for joint development of auto components for vehicle applications in India. T-Mag is a new cost-effective, fully-integrated

Adil Mohamed, Senior BDM, Automotive (India) for the ATC

casting technology for magnesium alloys that is particularly suited for light weighting automobiles and components. The third Australian supplier, Diemould, established a representative office in Pune in June this year and is in the process of fi nalising development and supply contracts with OEMs. The company produces high quality cavity tooling, including lens lighting with two-shot moulding for global customers with distinctive needs. Egged on by a focus on research and joint collaborations in advanced material study, Deakin University of Australia has established its footprints in India with a representative office in New Delhi. One of Australia’s largest Universities, it is currently engaged with various OEMs and Tier I groups in building international partnerships in research.

The remaining three suppliers – aiAutomotive, Air International Thermal Systems and Futuris Automotive Interiors (Australia) – are in discussion with potential joint venture partners in India. Of these, aiAutomotive is a supplier of metal stamped components, sub-assemblies and e-coating facilities to the OEMs and aftermarket, and Air International Thermal Systems is a specialist in design, development and supply of heating, ventilation, air conditioning and powertrain cooling systems. Futuris, on the other hand, is a supplier of seating, floor carpets, door trims, acoustic insulators, trunk trims, steering columns and pedal boxes.

Sustainable Targets An initiative under the Australian Government’s A$6.2 billion new Car Plan for a green-

er future that is spread across 13 years, its long-term vision is to make the Australian auto industry economically and environmentally sustainable. ‘We are looking at an increasing level of engagement between Australian suppliers in India by coming and doing business in India either through exports or through physical presence,’ Mohamed told Auto Monitor. To facilitate these companies, the Car Plan is knocked down into the Green Car Innovation Fund comprising A$1.3 billion kitty spread over a period of 10 years. Under this programme, the Government sanctions a grant of $1 for every $3 dollars to the company seeking the grant. For a foreign entity to avail the grant, it should have a presence in Australia in the form of a subsidiary, a joint venture or through the acquisition route. The deciding factor for the funding would be future technologies it innovates on Australian territory that help cut down conventional fuel consumption and greenhouse gas emissions. For instance, Samvardhana Motherson Ref lectec Group company, SMR Automotive Australia, recently received a grant of A$2.4 million from the federal Government’s Green Car Innovation Fund to help develop fuel-saving mirrors in co-operation with the University of South Australia. Already a major supplier of rear-vision mirrors and other components for the Australian and international motor indus-

tries, the company is planning to establish a greenfield plant in South Australia to make the new mirrors, which it says would cut car fuel consumption. Similarly, the Market Access Programme, the second constituent of the Australian Car Plan targets representatives in key markets like India, China, Thailand and Korea with the aim of entering into technical collaborations, technical licensing agreements, joint ventures or contract manufacturing partnerships. ‘We want to partner in the progress of the Indian auto industry as we see rapid growth in the sector and production figures are just mind-blogging. It is here that we see opportunities of applying Australian technologies for commercialisation of production,’ remarked Mohamed. In July this year, Australian supplier MtM had commenced supplies of automatic gear box shifters to Mahindra & Mahindra for installation in its Scorpio SUV planned for the export market of USA. It may be noted that M&M is planning to export Scorpios to USA with automatic transmissions controlled by automatic gear-box shifters.

Top Player Independently, the Australian automotive industry does not possess major capabilities in this stream though its technological prowess in concept prototyping, design, engineering and delivery is advanced, he said. ‘It is among

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Auto Monitor

Talbros Automotive to shift capacity for aftermarket to Sitarganj facility Abhishek Parekh New Delhi

albros Automotive, the fl agship company of the Talbros Group, is hoping to increase its share in the aftermarket segment in India. The company is in the process of shifting manufacturing for the aftermarket segment to the newly setup facility at Sitarganj, near Udham Singh Nagar in Uttarakhand from the existing Faridabad facility, which would serve National Capital Region (NCR) based customers and international markets. ‘GST implementation is likely to lead companies to do away with the need for warehousing their stocks. Post GST implementation, tax benefits or pricing rationalisation will not be the primary driver for need to have warehouses at various locations,’ said President, Gasket, Stamping & Rubber, Talbros Automotive Components, Sujat Vora. The aftermarket segment is already beginning to see significant organisation in terms of service delivery and parts sourcing with the advent of multi-car service stations like Carnation Auto and Mahindra FirstChoice. This trend will benefit suppliers to enhance their reach and network beyond their distributors and dealers. The major change that Vora is anticipating is the shift in attitude of OEMs towards the aftermarket supplies. Currently, many OEM restrict their suppliers from ser v icing the aftermarket demand in addition to restricting aftermarket supplies through supplier’s own or third party distribution network. ‘Such a policy could actually lead to sub-standard or inconsistent quality parts reaching the aftermarket to the detriment of OEM’s image. Customers are denied the choice of appropriate spares due to such restrictive aftermarket policies,’ said Vora. He expects quality service station network outside the authorised service station network of the OEMs to grow and cater to burgeoning demand for quality servicing.

Austerity Measures The company is on schedule to expand gasket capacities by around 20 percent in the current fiscal, with minimal capital expenditures, Vora said. He added that the downturn has taught lessons in austerity measures and belt tightening for auto component players across the board. Most auto component makers have adopted measures like improving productivity, strengthening their vendor base, debottlenecking and other such measures requiring minimal additional investments in plant and equipments. Ta l b r o s Automot ive Components derives around 65 percent of its business from the OEMs, 20 percent of the turnover comes from the aftermarket business while the remaining share is derived from exports mainly to Europe and the US. Its gasket products portfolio include cylinder head gaskets, engine overhaul kits, conversion

kits, multi-layer steel gaskets, steel elastomer gaskets, edge moulded gaskets, exhaust manifolds gaskets, rubber moulded gaskets, heat shields, secondary gaskets, shims & washers and tyre sealants. A leading supplier of automotive and industrial gaskets, Talbros Automotive was initially established in collaboration with UK’s Coopers Payen (now Federal Mogul Sealing Systems). Its parent, the Talbros Group, has strong partnerships formed with global corporations including Federal Mogul, US; Nippon Leakless Corporation, Japan; Affinia Group, US and Presswerk Krefeld, Germany. The company has 12 manufacturing facilities across

six product lines or businesses with four dedicated gaskets system facilities. Talbros Automotive’s key customers include Ashok Leyland, Bajaj Auto, Cummins Group, Eicher, Escorts, Force Motors, GM, Hero Honda, Honda, Hyundai, John Deere, M&M, Maruti Suzuki, Suzuki, TAFE, Tata Motors, Tata Cummins, Simpsons and Affi nia Automotive, among others. The company closed FY10, ending 31 March, with consolidated revenues of `246.51 crore, while the net profit for the previous fiscal stood at `8.76 crore. The net sales for the June quarter this fi scal stood at `73.92 crore and the net profit for the quarter stood at `2.24 crore.

Sujat Vora, President, Gasket, Stamping & Rubber, Talbros

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‘EVs, hybrids to remain niche products over next decade in India’ Electric and hybrid vehicles will not become mass products and are slated to remain niche products in emerging markets like India, whereas in developed economies, they are likely to be well accepted in the near future, Senior Director, Deloitte Touche Tohmatsu India, Kumar Kandaswami told Auto Monitor recently. Moreover, India would continue to face shortage of skilled workers, leading to a move towards further automation. Excerpts: Shobha Mathur How will India fare as a global carmaker and as a supplier in the next decade? Last year, we conducted a study of the global auto industry and came up with the conclusion that by 2020 there are likely to be six major regions globally – Western Europe, United States, Japan, Korea, India and China – with significant OEM presence. These markets would become the centres of design and manufacturing for OEMs and their suppliers,

How do you see the car market in the next decade in India? Clearly, as opposed to the other countries, we foresee a continued trend for conventional cars driving demand in the emerging markets. The alternate fuel cars and electric cars will probably not be major players during the coming decade. In more developed markets, the alternate fuel cars are likely to get out of the niche spots they are playing in and are likely to become more mainstream. One big characteristic that we visualise are conventional cars. And we are likely to see a 12-13 percent growth in the next five to six years in them.

Kumar Kandaswami, Senior Director, Deloitte Touche Tohmatsu India

with the OEMs becoming mainstream large volume players. By 2020, about 10 OEMs based in these six major markets would globally account for about 90 percent of global sales. To that extent, India would be an important market for passenger cars. It could be Maruti Suzuki India or it could be Tata Motors, but market forces indicate that one major OEM would be out of India. Given the market size, it would be fundamentally someone who will design, develop and manufacture cars here.

What about commercial vehicles? In terms of commercial vehicles, they have a direct correlation to the GDP growth. To a large extent, the road network and retail growth impact the way light commercial vehicles (LCVs) grow, while mid-sized trucks (MCVs) grow directly proportional to industry GDP growth, and heavy trucks (HCVs) grow directly proportional to the quality of road networks. Interestingly, while MCVs would grow around 12-13 percent,

LCVs would continue to grow at a much faster rate because globally the share of LCVs to others is 70:30, while in India it is 55:45. There is still a certain headroom for LCV growth in India not due to the shrinkage of other segments but because it would grow faster than other segments. And with the quality of roads improving, the tractor-trailer segment that is currently at about three percent of the CV segment, can potentially hit around five to six percent during the decade. The penetration of CVs in India is about 500 per million population, while that in the US and Canada, it is in the region of 18,000 per million population. Even South Africa is in the region of 1,600 per million population. This presents an opportunity for the sector. We believe, LCVs will move at a reasonably good pace and MCVs will continue to grow in terms of volumes but lose marketshare to LCVs and larger trucks. The growth of larger trucks of course, will depend on the quality of trucks and the promise of developing 18,000 km of highways by the Indian Government. Does the twowheeler seg ment present similar growth potential in India? There is opportunity to grow further as twowheelers will never grow out of fashion. And demographically, if you are going to have a lot of young people over the next 20 years, one would assume a natural growth would happen in the twowheeler segment. It will continue to grow on top of per capita consumption that is around 10 million or so. What should suppliers do to ensure their growth is commensurate with that of the OEMs? Two factors have to be considered: if we have significant OEMs active in India, the quality of the supplier base is bound to undergo some changes in terms of system integrators; technology owners; and people who work on long-term projects in India as opposed to a large portion of the segment being converters – like

working on designs given by joint venture partners. There will be far more integrated activities with the OEMs. The size of suppliers is also likely to go up, at least in some segments. There will be more large suppliers in the `500-600 crore range and technology players will also increase. Large companies like Tata AutoComp Systems (TACO) have begun investing and have also expressed their ambitions in this regard. They will start creating technology for India with cars designed specifically for India and taken to the rest of the world. What about technology partnerships with overseas counterparts? Certain technologies, for instance the CRDi technology, are not available with OEMs, but are with the suppliers. To that extent, there will be some areas where technology will get generated in India. Safety related technology is still not mature in India. Do you visualize any major inroads in the research and development sphere? In manufacturing, India spends half as much as the rest of world in research and development. Two to three years ago, we were investing 2.5 percent in R&D, while the rest of the world was investing 4.5 percent of sales turnover. Auto suppliers are no different and that is the biggest weakness of the component community because they end up competing only on costs. With 55 to 60 percent of your turnover sitting as material, the elbowroom is very small. And when you have low profits, you are not able to invest in R&D. If the sector has to get out of this rut, the median spend is in the range of 4 to 4.5 percent in R&D. What is your take on Indian supplier profit margins? During the 2000-2005 period, there was very little capacity addition in the component sector. This was followed by capacity additions of 20-25 percent 2006 onwards. The slowdown that followed meant demand was nominal and auto component manufacturers were stuck with excess capacity.

In the absence of significant intellectual property that can drive profitable growth, companies always operate on the knife-edge. The inability of companies to make costs elastic is an issue they will think about, when they plan their strategies. The ability to manage operations with optimised levels of inventory would determine profits and flexibility. What are the current trends in the Indian automotive industry? One of the aspects to be considered is the product mix in the passenger car market. Some of the OEMs that we spoke to say that the luxury car market has still not matured because of the very low penetration levels and they expect that to change signifi cantly over the next decade. Local sourcing and manufacturing of luxury cars can potentially bring down the sticker price by about `10-12 lakh. That could make this a fast growing market. India will never get out of the hatchback market but high-end sedans will over a period of time become reasonably popular. How do you view the skilled manpower shortage in the automotive sector? The biggest worry is of recruiting manpower in specific areas of R&D. India has never had a background of research and development; so that is a big weakness area. Shortage of workforce is a huge issue globally. In the US, it was bad treatment that led to workers quitting automotive companies. In India, we are competing with the services sector and are not able to hire good people. This is more a generational issue and not so much infrastructure-related. This will lead to more automation in companies in the absence of skilled labour. The other major concern is of understanding product liability. We have no understanding of customer relationship management, whereas maturity levels are very different in other parts of the world. We need to understand these areas, especially if we have aspirations in the export market.

TACO announces two new tech centres, targets $2 billion in revenues by FY15 Our bureau Mumbai

arlier in October, Tata Autocomp, the f lagship automotive component outfit of the TACO Group, celebrated 15 years of operations, even as it launched an all-new bus seating range and announced two tech centres for its companies. The primary objective of the new technology centres, one each for Taco GY and Tata Yazaki making batteries and wiring harnesses, is to minimise

the expensive logistics of product validation, which currently requires the fi rms to send prototypes to external locations. The overall investment is less than `20 crore. The move also reiterates the fi rm’s aggressive stance on tech-absorption, which Chief Operating Officer, TACO, RS Thakur said, ‘we missed out on as we witnessed over 35 percent CAGR through the last decade.’ In other developments, the component manufacturer showed off its flagship seating

range for ultra luxury inter-city coaches. The prototypes examined by Auto Monitor came complete with USB drive sockets, reading lamps, aisle illumination, adjustable headrests and several other features. ‘We are already in talks with several players, including Volvo buses, for the seating range,’ said Thakur, adding that the development costs for the projects are too small to mention. ‘It was a challenge accepted by the seat systems team to develop a world class luxury seating range,’ he

said. TACO already has over 50 percent market share in TML’s low floor city buses, delivered to the Delhi Transport Corporation (DTC) and several other State Transport Undertakings (STUs). Talking about new customers, sources within TACO informed that it has already bagged the contract to manufacture full services seating systems for the Land Rover Freelander, scheduled to be assembled in India by early 2011. The source elaborated, upon conditions of anonymity, that ‘this would comprehensive-

ly enlist TACO in the elite JLR suppliers’ detail. Also, he added that TACO is now a single source supplier to the Indian Defence Forces for hard cased batteries aiding their communication equipment. Chairman, TACO, R Gopalakrishnan said the fi rm is targeting $4 billion in revenue over the next 10 years, through a host of its joint ventures, which are all profitable at this stage. Chief Operating Officer, TACO, RS Thakur was more modest in his plan to peg revenue targets at $2 billion by FY15.

1 - 15 November 2010

CORPORATE

Auto Monitor

VW still unsure on the details of cooperation with the Japanese major

SkodaAuto India to get Suzuki assistance on sub-Fabia small car Our Bureau Mumbai

kodaAuto India, Volkswagen Group’s entry level brand is confident of showcasing an all-new small car line based on a platform jointly developed by VW and Suzuki as early as Auto Expo 2012. ‘The new small car would be more affordable than our existing offering in the super-mini segment,’ said Member of Board for Sales and Marketing, Skoda Auto India, Thomas Kuehl. The new small car, Kuehl added, is a joint effort and engineering and development is undergoing at the Skoda headquarters, while marketing perspective is being looked at from India. ‘This involves volumes, pricing concept, line-up and feedback from the development team,’ he clarified. V W owns nearly a fi fth of the Japanese K-car specialist, which in turn owns a majority stake in Maruti Suzuki India (MSIL). Experts and sources on condition of anonymity, have confirmed that the WagonR and A-Star platforms could be as much as ‘adopted and redesigned’ for Skoda to meet those deadlines as the India unit of the Czech carmaker hasn’t been proactive on localisation in the domestic market. Take for instance the Fabia range that was re-launched in early October, with a mere 40 percent localisation, which is up from 15 percent on the previous edition, a dismal figure for a mass market manufacturer by emerging markets standards. And that, even as it rolled out the 25,000th Fabia off its Chakan lines later the same month. India by all means, is the only market where Skoda is high up on the aspiration radar, perhaps higher than a Volkswagen. It is also the only market where the Passat and Jetta are offered with a mere manual transmission option, while Skoda’s Laura and Superb makes the most of the DSG box, which is clearly a VW effort. This comes on the back of a substandard ownership experience at Skoda, which is no more a secret. To make matters worse, the Fabia is rolled-off the same Chakan lines, which also makes the Polo, and is marred in volumes thanks to the long waiting periods. The waiting periods also trickle down to the Vento, if initial customers and dealers who spoke to Auto Monitor are to be believed.

Overcoming Hurdles ‘We have a lot of loose ends to be tied up. And in the run up to the subsequent launches, we’ll overcome the hurdles,’ said Kuehl. But even as the group gears up to unleash the potential of its new found alliance with the Japanese carmaker, it is pulling all stops to minimise brand confl ict and pricing oriented cannibalisation that has come to haunt the German giant. That perhaps explains why the new face-lifted Fabia was launched at `4.35 lakh for the base variant, powered by the 1.2 litre petrol. There are signs that the senior management of the V W

group is becoming increasingly focused on preventing sales cannibalisation between its brands. It appears that there is a move within the organisation to more clearly defi ne the positioning of the various volume brands within the group, with special emphasis being placed on the relationship between the V W brand itself and Skoda. As the parent brand and by far the largest volume brand in the overall group, V W will always take precedence, both

in terms of debuting new technology and in terms of positioning and marketing over the other volume brands within the group. When Skoda was acquired in 1991, it was always seen as the clear entry-level brand within the group. However, the leaps in quality and design that Skoda has made under V W’s ownership, with the brand basing models on V W’s platform and powertrain technology, means that in terms of its product offering Skoda has transformed itself over the past two

Contd. on P29

Auto Monitor

1 - 15 November 2010

CORPORATE

NEI to spend `1,000 crore on expansion, eye acquisition Shambhavi Anand New Delhi

fter winning the prestigious Deming Application Prize for distinctive performance improvement through application of Total Quality Management (TQM), National Engineering Industries (NEI) and the manufacturer of NBC bearing for automotive and industrial segment is scouting for acquisition. NEI is looking at companies with a turnover range between `50-100 crore as its acquisition target, both in India and abroad. While talking about the company’s aggressive investment plans, Chief Executive Officer, NEI,

Rohit Saboo said, ‘We don’t want to do unnecessarily big acquisitions but acquire companies where we can add value.’ The company plans to spend around `1,000 crore over the next four years on expansion, which will essentially include investments in greenfield and brownfield facilities, apart from acquisitions. Part of the CK Birla Group, NEI is looking for locations in Rajasthan for setting up new plants and by the end of this year, Saboo expects to fi nalise those. Expansion of existing plants in Jaipur, Newai and Manesar is also on the company’s agenda. In its current capacity, NEI is able to

produce eight crore ball bearings, one crore taper-roller bearings and large diameter bearings for industrial use. Responding to a question, Saboo said the company has no immediate plans to launch new products, but is working on developing and introducing ‘third-generation’ bearings at its R&D unit in Jaipur, Rajasthan. Globally available, these bearings are used for various industrial, automotive and railway applications.

Quality Leader The Jaipur-based company recently became the 20th Indian company to win the

Deming Application Prize by the Union of Japanese Scientists and Engineers (JUSE). ‘The Prize is the recognition of the journey we had undertaken five years ago to change the traditional methods of working in order to become customer-friendly and system-oriented. It is not only a quality award, rather a cultural award,’ Saboo said of the award that is considered to be one of the highest awards on TQM (Total Quality Management) globally. While efforts to ramp up domestic business continue, NEI is also negotiating with international players to increase its exports share. ‘We are talking to auto companies in several coun-

Rohit Saboo, CEO, NEI

tries like the US, Italy, Brazil, and South Africa. We would like our export earnings to improve from the current fi ve percent to 15 percent of the turnover,’ Saboo said. Currently, the company exports bearings to more than 20 countries. The company does 60 percent of its business with automotive manufacturers, while about 32-35 percent business is with the Indian Railways. The remaining is accounted for by industrial applications. In the automotive space, NEI supplies bearings to almost all auto manufacturers in India and talks with several other manufacturers are in various stages of approval, Saboo said. NEI, which contributes 15 percent to the group’s overall revenues, expects to register revenues of `950-1000 crore in FY11, up from the current `750 crore.

ZF kicks off transmission facility Our Bureau Mumbai

eading worldwide automotive supplier for driveline and chassis technology, ZF, recently kicked off an assembly plant in Pune, planning to manufacture heavy truck transmissions. In the medium-term, the Commercial Vehicle and Special Driveline Technology division of ZF plans to produce around 25,000 ZF-Ecomid nine-speed transmissions annually for heavy trucks up to more than 40 tonnes weight, informed Head, ZF Commercial Vehicle Business, Mandeep Bhalla. Group Executive of the Commercial Vehicle and Special Driveline Technology division, Rolf Lutz said the company can offer the entire product range for CV transmissions, including manual, automated and automatic transmissions. ZF employs roughly 80 employees in the truck transmission assembly plant, which will increase to around 150 in the next five years. The company manufactures transmission housings, gears, and shafts and it is targeting a localisation level of 80 to 85 percent. The ZF Group has a roughly 29 percent stake in Sona Somic Lemförder; a 26 percent stake in ZF Steering Gear; and a 50 percent share in ZF Electronics TVS (India).

Auto Monitor

1 - 15 November 2010

INTERVIEW

Automotive Infotronics developing ‘Driver W After developing an information cluster – FLEX CAN (Controlled Area Network) Cluster – for Continental’s overseas applications, as well as multiplexing units for commercial vehicles, Chennai-based Automotive Infotronics (AIPL) is now moving a step further. It is developing a ‘Driver Workplace’ system by integrating different components into a single system around the bus driver to reduce fatigue while driving. The system would simultaneously benefit both OEMs and fleet owners by improving vehicle and driver performance. The fully indigenised ‘Driver Workplace’ system would primarily target Ashok Leyland’s (ALL) global bus programme and is likely to be tested in ALL’s Optare buses. The CV maker had acquired 26 percent stake in Optare, a UK-headquartered bus manufacturer for `28 crore. Chief Executive Officer, AIPL, Aravind S Bharadwaj told Auto Monitor that the company has conceptualised the building blocks for the system and would be meeting its parents – ALL and Continental – soon to work out the modalities for the integration system. AIPL is an equal joint venture between ALL and Continental that started operations in April 2008. Excerpts: Shobha Mathur At what stage is the Driver Workplace programme and how does it work? AIPL is embarking on the Driver Workplace system that will be a fi rst in India and is very

important for management of human factors in the bus. We have already built the building blocks for the cluster, body control unit and switch mugs. We are now in the process of iden-

tifying partners for supplying various components, including Continental partners in Europe besides ALL’s supplier base in India for parts like plastics, steering systems and seats. By putting

all this together, we can move from a component view to a systems view. From an OE point of view, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) fleet programme was a learning experience. Since there were so many suppliers, it increased the electrical and electronic complexity of the buses multi-fold. Besides the information cluster, we had to tackle the hardware, software, connectors, wiring harness, and the system integrator together with the bus, engine and powertrain variants. Then came the body builder and chassis – the reason why Ashok Leyland (ALL) started building the full bus body in Alwar, Rajasthan as the vehicle had become very complex. The question is: how does one manage all this without a driver

workplace system? Typically, a European driver workplace for intra-city applications is a single package up to the steering system with instrument cluster, master and slave multiplexing systems, switches and the plastic panel. The entire workplace surrounds the driver and Continental is a leader in developing it. They have done tremendous amount of research in terms of its guidelines and the entire system adjusts to each driver, who comes in with each shift change. This necessitates an entire systems view of it whereas, today, in India a component view is maintained. You buy a cluster from one supplier, switches from someone else, plastics, steering systems, seats are supplied by some other supplier, then there is a body builder and then everything is put together by someone else. So all these end up as independent functions and the driver has to adjust to them and that raises his fatigue level. It is quite a difficult workplace and if you integrate all the functions together in a single system, it results in the vehicle being treated much better by the driver. Moreover, the price band for these systems is extremely wide between Europe and India and we see great opportunity in developing such a product at a lower price point along with ALL and Continental in terms of the Indian context. What is the impact of the Driver Workplace system on various stakeholders? In many cases, when the system fails, you have multiple suppliers to look at to identify the fault. The OEM’s effort goes up exponentially. We come in with the system at the body builder stage and plug it in and programme it for various variants for full system integration. This leads to peace of mind for the OEM and is much more beneficial to the end user, who is the driver. To the fleet owner it will have a direct impact in terms of how his vehicle is going to be utilised and how efficiently it will perform. For instance, with a gear shift advisory coming through the USB drive, the fleet owner will get a full report in terms of driver rating. This will facilitate him to cut down on driver-to-driver variation in vehicle performance, improving driver behaviour and enhancing fuel economies. One study has put fuel economy variance at 30 percent, where a vehicle has a manual transmission, so that is money in the pocket of the fleet owner. Further, with all these electronics, you are enabled with information about revving up of an engine, idling or very harsh braking by the driver. So, you are going to the next level of data maturity – conversion of data into information and analytics to give an action plan to the fleet owner of how to improve fleet productivity. AIPL provides the guidance and action on it will be taken by the fleet owner. What kind of guidance is AIPL offering? By incorporating this feature with the USB tool offl ine, we are looking at driver behaviour

1 - 15 November 2010

INTERVIEW

Auto Monitor

r Workplace’ for buses to cut driver fatigue improvement that is already provided for in the USB. By providing him the right type of environment like driver workplace, the driver will be facilitated – from a real point of view, when he is sitting in the vehicle and from an analytical point of view, he will be enabled to improve his driving habits. From an OE perspective, he will not have to talk to multiple suppliers, and there will be a very clear traceability in terms of each function. The entire component system becomes an aggregate that is then placed in the vehicle. Today, the scaling up of electronics in CVs is ver y rapid in India. For instance, in the JNNURM applications, the requirements of the State Transport Corporations (STCs) were as high as that are required in global buses. In that case, the movement is towards a mastermaster multiplexing system, which is very complex. With ITeS enabled displays, customers are talking of camera integration, where the use of a rear view camera helps you see while reversing the vehicle. So when you are looking at that scale of electronics in CVs, AIPL comes in with its building blocks and works as a consortium with the suppliers and takes on full responsibility for the bus manufacturer. It is a huge benefit to the OEM because it’s a migration from a component supplier driven system to a systems supplier approach and that’s the track we are taking. AIPL is tapping both ALL’s and Continental’s parentage for knowledge and markets to innovate the right product. Who manufactures the product?

being introduced in the U-Truck A lot of engineering is in the fi rst quarter of CY 2011. involved in devising the most This fully developed Indian optimal architecture for the innovative cluster body control product, both from the electronand multiplexing system, which ic and mechanical point of view. is 100 percent developed by us, Continental trains us as they are will be manufactured in India playing the role of systems supby Continental at Bangalore and plier overseas and we also get designed at Chennai. It is curmarket knowledge from ALL that rently undergoing field trials. enables us to provide a systems The U-Truck platform will solution to the OEM. comprise a series of vehicles ALL is also on a globalisation with the latest electronic clusspree with its global bus proters, including features like USB gramme and acquisition of a 26 drive monitoring that can store percent stake in Optare. There 25 days of driver data, offl ine is need for an Indian price perdiagnostics monitoring and onformance point, and hence AIPL board full-fledged diagnostics is aligning with ALL’s roadmap on the cluster. to provide the right type of soluWe are generating these plattion at the right price point for Aravind S Bharadwaj, Chief Executive Officer, AIPL form products and our body both the global and domestic complex functions. But now market. That makes the The current state of electronbody control is also getting Indian product attractive ics in CVs is less than five percent, more complex in CVs as their for the customer. but Euro IV emission requireAIPL is aligning with ALL’s degree of complexity and We are already developments will require a higher roadmap to provide the right customisation increases. We ing clusters for Continental’s level of electronics with the type of solution at the right have adopted this modelcustomers outside India in entire vehicle becoming netagriculture, off-highway, price point for both the global based development and it has worked. Elect ronics were truly benefited us in terms and snowmobile vehicles. initially introduced to sync with and domestic market of how we are able to shortThese clusters are manuthe onset of Euro III emission en the product development factured in Switzerland by norms with engine electronic cycle time and also increase Continental and developed diesel controls acting as selfthe traceability. We already have by us. control unit is completely controlled units. enquiries from China and Brazil model-based to portray the cusThe buses manufactured on adapting it there. tomer requirement with features under the JNNURM scheme conWhen is the Driver We create knowledge – essenof functionality, realisation and tained tremendous Intelligent Workplace system likely to be tially market knowledge through the software code that is comTransport Systems (ITS) and rolled out in ALL buses? ALL and technology knowledge pletely auto-generated. ele c t r on ic r e qu i r ement s It will be launched by the through Continental, and with We don’t write manual codes with a key system being the third-fourth quarter of CY 2011. this we are moving up the value any more. Essentially, for any master-master multiplex ing Continental, who is a leader in chain in engineering, creating user requirement there is full system for improving vehidriver workplace solutions in our innovation and Intellectual traceability in your software cle per forma nce t hrough mature markets globally, is very Property. development cycle for a prodnetworking. In the initial phase of keen to see it implemented in So, once the entire engineering uct realisation. So, if some other the programme, these systems emerging markets as well and – from requirement to realisacustomer comes in, it is easy to were imported and were high they see AIPL as a key partner tion – of a product is opened up, adapt the code for him. This is a on cost. Later, AIPL talked to for them. it becomes easier for a collaboraMathWorks tool and for the fi rst t he Min ist r y of Urba n tive development of product. time is being used on a body Development and developed What about the multiplexing control unit. their requirements on the system that you are developing Powertrain controls use it Continental platform at a fracfor Ashok Leyland’s U-Truck? What is the current state of because they perform a lot more tion of the cost. Our f lagship products are CV electronics in India?

Auto Monitor

1 - 15 November 2010

CORPORATE

Bosch lines up aggressive portfolio for two-wheeler segment Abhishek Parekh Bangalore

he largest automotive supplier in the country, Bosch India, is looking to make a major entry in the two-wheeler segment with the launch of Antilock Braking Systems (ABS) and Electronic Stability Program (ESP) for two-wheelers. The German automotive giant, which has a major presence in passenger and commercial vehicle segment in India, is planning to gain a major entry into the two-wheeler segment with the launch of products developed specifically suitable for Indian usage, habits and conditions.

Manfred Duernholz,Joint Managing Director, Bosch India

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The ninth generation ABS, which is 50 percent lighter compared to the previous generation ABS, is targeted at the mass market motorcycle segment in India. As the volumes build-up, the company is planning to commence local manufacturing of the product at its existing ABS facility in Chakan, near Pune. The company has also chosen India as the development centre for two-wheeler start/ stop system. In fact, the Indian market could well be the fi rst to get the product, when it is ready for launch. The system allows automatic engine shutdown after a set time, ranging from few seconds to few minutes, and restart of the engine with simple pressing of clutch. The system has demonstrated fuel reduction through more efficient and dynamic usage of up to 6-11 percent under test conditions in and around Bangalore. ‘We will be testing the system nationwide under different driving patterns before we introduce the system,’ said Head of Product Manufacturing, Marketing & New Business Projects, Starter Motors & Generators, Bosch India, Alexander Boehmler. The company’s start/stop system for compact cars and motorcycle was demonstrated at a recent visit to the company’s Aduguddi facility in Bangalore. ‘It has taken us much time and effort to convince the top management on the need to enter and provide quality safety systems to address the Indian two-wheeler segment. The main apprehension has been that the two-wheeler segment is too competitive for any supplier to have a decent margin, as well as offer value preposition to the customers (OEMs). But we feel we are approaching the market at the right time as vehicle safety is beginning to be accorded a priority (for end customers) and regulator y changes are turning favourable for safety features,’ said Joint Managing Director, Bosch India, Manfred Duernholz. He added that local manufacturing and consistent quality is the key to gaining large marketshare in the price sensitive two-wheeler segment.

Lightweight Measures Bosch has made efforts to reduce the average weight of the latest generation ABS and ESP series for different vehicle applications. The effort is the result of cost pressures and weight reduction targets for the vehicle set by OEMs. Compared to the second generation ABS weighing as much as 6.9 kg, the ninth generation ABS weighs around 1.1 kg and has controller memory of 256 kb. The ESP, on the other hand, weighs around 1.6 kg and has controller memory of 2 mb. The ABS allows a motorcycle to cut down the distance to standstill by close to nine metres in case of brakes applied on a motorcycle travelling at 100 kmph under standard testing conditions, when compared to a motorcycle without ABS. This is especially useful when applying emergency braking and helps

Contd. on P35

1 - 15 November 2010

Auto Monitor

CORPORATE

ARCI leading public-private-partnership... Contd. from P1 and Mahindra and Mahindra) and four Fraunhofer institutes in Germany. ‘The project was formulated through several workshops and interactions with guidance from the CAR Expert Panel on Materials and Manufacturing. Its main challenge is to develop joining technologies for metallurgically incompatible materials. Accordingly, some of the recently developed low heat input processes (cold metal transfer welding and laser brazing), mechanical joining (hemming, self-pierce riveting) and adhesive joining have been chosen for investigation,’ elaborated Associate Director, ARCI, G Padmanabham.

CAR Project While the Tailor Welded Blank (TWB) technology and hydroforming techniques are popularly pursued globally, with most of the foreign OEMs deploying the techniques for achieving weight reduction and related benefits, in India, it has been a late starter making its presence felt only in the early part of this decade. ‘This is due to the lack of appropriate know-how and infrastructure available with auto manufacturers in India. This has lead to the inception of the project under CAR,’ Sundararajan told Auto Monitor. The lightweighting project aims at developing competence groups within the country along the entire value chain to assist Indian auto manufacturers in adopting the TWB and hyd rofor m i ng tech n iques. Lower cost, greater flexibility and more possibilities of innovation are some of the benefits that would accrue to the auto

G Sundarrajan, Director, ARCI and Chairman, CAR Panel on Materials

industry from this R&D project, Padmanabham informed. To profile the techniques, hydroforming utilises fluid pressure (in place of punch that is a mechanical tool used in a conventional tool set) to form the part from sheet or tube material. Complex parts with higher drawing ratios and large crosssectional differences can also be formed. Parts also get work hardened, thereby increasing dent or crash resistance and rigidity as well as allowing thinner, lower grade materials to be used. Increase in strength-toweight ratio, uniform strain or elongation distribution and minimised spring back, leading to greater dimensional stability and accuracy, are the additional benefits that result from adoption of the hydroforming technique. The technique is very useful in producing whole components that would otherwise be made from multiple stampings joined together. ‘For example, a typical chassis component that would normally be made by pressing up to six channel sections and joining by spot welding can be hydroformed as a single part. Considerable savings are possible through

eliminating the flanges (flange generally refer to the actual raised rim or lip of a fitting) required for welding and using thinner steel. Yet, stiffness is maintained owing to the elimination of the discontinuous spot-welded joints,’ remarked Sundararajan. Integration of a number of parts into one also directly results in significant reduction in the process stage and substantial savings in tooling costs. On the other hand, TWBs are composed of two or more sheets of similar or dissimilar thickness, materials, and coatings that are welded together to produce a single sheet blank so that the best properties of steel are located exactly where they are needed within the part. This leads to weight reduction as fewer parts are used. Moreover, in terms of performance, it leads to improved structural integrity with fewer dies, enhanced safety with fewer spot welds, reduced noise and vibration, greater corrosion protection and improved dimensional accuracy. In terms of economic benefits to the OE, it accrues in reduced design and development time, lower manufacturing costs, optimal utilisation of material and less scrap. This makes the TWB technology extremely attractive for automobile manufacturers.

Project Implementation During implementation of the project at ARCI, a specific component like the long member of an SUV that extends from the frontwheel to the back-wheel base of the vehicle was selected for hydroforming studies, while the inner door component of an SUV was selected for the TWB studies

to enable validation. In the TWB project, the target was to achieve a 4.2 kg weight reduction and elimination of one reinforcement element, keeping all the performance capabilities intact. Material combinations for the TWB were identified based on the design requirements and verification of process and tool by Finite Element Methods simulation. A laser welding system was commissioned at ARCI by procuring a 3.5 kW CO2 slab laser and integrating it with an existing four-axis CNC workstation and a seam tracking system. Extensive welding studies were carried out and defect free welds were made. During modelling, the methodology to handle variable thickness in TWB was evolved and forming limit strains of TWB were predicted. Simultaneously, simulation work was carried out to understand the weld line placement and movement, metal flow behaviour during forming and optimisation of die design by considering issues like die entry radius, and binder loads. Overall, the knowledge base required at various stages in TWB technology, like laser welding, modelling, simulation methodology and formability data was generated. In the hydroforming project, a chassis long member component of an SUV was considered and dual phase steel that contains both – ductility to be shaped according to requirement, as well as strength was chosen for the component. The objective was to reduce 15 percent weight of the existing component. Extensive modelling and simulation work was carried out with a methodology for forming limit strains during hydroforming.

G Padmanabhanam, Associate Director, ARCI

Tube hydroforming for various tube sizes was also simulated. After undertaking simulation studies, almost 4 kg weight savings were estimated. However, as the component size was too large requiring a press of very high capacity, a three-piece component was taken and simulations repeated on it. The project drew inputs from existing laser welding expertise at ARCI, capabilities in the area of formability at IIT Bombay and full-scale simulation competence by ProSIM, a company based in Bangalore. Tata Motors and M&M undertook the design and practical aspects of the components. Tata Steel, who also supplied the steel sheets and tubes, provided the materials know-how. The project relied on a combination of laboratory scale experiments, analysis for optimisation purposes, modelling studies and full-scale simulation using FEM techniques. ‘Actual component trials now need to be taken up based on the knowledge base generated. We are waiting for vehicle manufacturers to approach us for design and fabrication of dies for actual components,’ concluded Padmanabham.

Auto Monitor

VIEWPOINT

1 - 15 November 2010

Frugal Engineering has deep roots in Indian mindset

Pankaj Tewari

‘F

rugal Engineering’, now famously associated to Indian engineering capability, thanks to the Tata Nano and Carlos Ghosn’s vocal admiration of the approach, has its deep roots in the unique ‘frugal’ mind-

working as ‘super designers’, and frugal mindset. It forces unconset of Indians. many still do. ventional thinking – because It comes to Indians easily As a super designer – a designmost conventional product develon account of being habitual er who is also expected to do opment leads to ‘doing less with to a perpetual lack of adequate analysis, proto developresources with respect to ment, testing and ensure the population. In addition successful introduction to being an Indian engineer, The use of approaches of the part/product – one I had the good fortune of like Ethnography, Quality has the advantage of lookstarting my career in a wellFunction Deployment, and ing at the big picture all the equipped design centre of a very progressive Indian comKano Analysis are of the tools time and allows for making adjustments on the prodpany. It was years later, while to analyse customer needs. uct as a whole rather than discussing product developin parts. ment programs with global It is this ‘frugal mindset’ customers that I realised the that enables effective ‘frugal engimore’ (no risk approach). It also enormous value and uniqueness neering’. There are three main compels questioning all existing of the experience we had gained features of frugal engineering: practices, products and systems. in our early years. A complete generation of The grooming of an engineer young Indian design engineers, to be ‘able to do more with less’ A) Products tailored to including myself, were used to builds a strong foundation of a customer needs:

Clean sheet development of products that are very closely configured to meet the needs of the customer – and very little else. The emphasis here is on NOT having features that do not address the stated or unstated needs of the customer. Hence, a sound understanding of the customer’s stated and unstated needs is primary for frugal engineering. The use of approaches like Ethnography, Quality Function Deployment, and Kano Analysis are some of the tools that aid in understanding customer needs.

B) Developing products cheaper: This is the most popularly known aspect of frugal engineering. Frugal engineering is defi ned as the science of breaking-up complex engineering processes into its basic components and then re-building each component in the most economical manner – it extends to use of most economical resources for product development. Off-shore product development in India and China attempts to leverage this aspect with partial success. The key here is appropriate splitting of work. In our experience of off-shoring and multi-shoring between the US, India and China, we found that success of the model depends entirely on two things – communication (the more the better) and work breakdown (effective line-ups). There are methods of effective work breakdown that do not compromise on efficiency and provide far higher benefits than originally envisaged. A 30 percent savings in product development costs and faster product development has been experienced by us.

C) Value Engineering: Value engineering is at the heart of frugal engineering – a frugal product is one that is able to achieve the same function with bare minimum. We have experienced the value of using an evolved Value Engineering process (VEP). It is based on looking at a part/product from nine different aspects and generating high impact ideas for quick implementation. Cost cutting to the extent of 20 percent, without compromising the value of the product has been achieved. For some clients this has resulted in multi-million-dollar savings due to the large annual volumes the product. This also involves a redesign-to-build approach, which also leverages low cost country manufacturing into the design. Given the mindset and grooming of a section of Indian engineers, frugal engineering is a very high value and unique offering that India has to offer to the global manufacturing companies of the world. [The author is Head, Eicher Engineering Solutions, Gurgaon. He heads the Indian Operations of the company and can be reached at ptewari@eicher.in. EES is the engineering services business unit of VE Commercial Vehicles (A Volvo Group and Eicher Motors Joint Venture). Frugal engineering is one of the offerings of EES]

1 - 15 November 2010

Auto Monitor

CORPORATE

Transfer Pricing issues in automotive industry Contd. from P14 Whereas, a detailed discussion on such an approach is beyond the scope of this article, in summary, a profit split approach aims at sharing the profit in the overall value chain in the relative contribution factor of each participating entity. This approach aims at fi rst remunerating the entity for routine functions and thereafter, the supernormal profit which is attributable to the intellectual property is shared between the participating entities in the relative ratio of their contribution. The tax payers struggling with identification of appropriate comparables for such transaction could consider the profit split approach to benchmark this transaction.

4. Issues relating to marketing intangible This is the recent controversy added on to the stable by the Indian revenue authorities. In recently concluded TP audits in India, the TP authorities have examined the marketing activities and spending by Indian subsidiaries of multinational OEMs from the view point of developing local market intangibles that are legally owned by overseas parents or other affi liates. For instance, where the Indian entity undertakes significant marketing expenditure above the industry average or comparable levels, the Indian revenue authorities have sought to attribute the excess marketing spend towards development of marketing intangibles for which Indian entity should be adequately compensated. In certain cases, the authorities have imputed a cost reimbursement to be received by the Indian entity, and in other cases, they have simply disallowed the ‘excessive’ mar-

SkodaAuto India... Contd. from P19 decades. As a result the company now offers V W brand technology and build quality at a significantly lower price point than the V W brand in European markets. ‘One of the strategies appears to be to take equipment that was previously standard on the company’s Skoda models and put it on the options list. There appears to be some anxiety within the wider VW group that Skoda is competing too closely with the VW brand model in key markets, with Skoda having the advantage of significantly lower price points for equivalent models,’ said an IHS Global Insight’s Same Day Analysis report dated 13 October, 2010. But in India the strategy of de-contenting has never worked, except for BMW’s Corporate Edition. Clearly the group and its Czech brand have some homework to do. The baffl ing uniqueness of the India paradigm has seen several OEMs in this position before. So as Skoda gears up to launch its new small car, the group must call its shots and identify if the sub-Fabia space is for VW at all. In the interim, both brands could do with a bit of tweaking of their ownership experience.

keting expenditure incurred by the Indian entity. In all such cases, the intention has been to compensate the Indian subsidiary for its contribution towards development of marketing intangibles locally. Though the issue of creating marketing intangible is not specific to any particular industry, this issue has also affected auto companies in India. Considering the industry dynamics which necessitate huge advertising and marketing spend, a number of auto companies have been subject to detailed scrutiny on this issue. The Indian Revenue authorities are just adopting a single-minded approach on this issue without appreciating the nuances of the marketing philosophy, the differences in the marketing needs of the company at different stages

of the lifecycle, etc. For example, a new entrant in the market may incur huge marketing spend so as to create awareness among the potential customers vis-àvis an established player whose brand and products are known to potential customers. Thus, in summar y the issue of marketing intangibles is an emerging issue in the Indian scenario, which merits closer attention by the tax payers. The tax payers should clearly document the inter-company arrangement especially with respect to advertising and marketing expenditure and the benefits derived there from. The tax payers also expect from the Indian revenue authorities to view this issue from a business and commercial perspective and not with the single-minded approach of proposing a

transfer pricing adjustment by merely comparing the levels of marketing spend.

Conclusion There are host of transfer pricing issues, which the companies in the auto sector are grappling with. These issues need a rational approach on the part of revenue authorities so as to come to an amicable resolution. India, as a jurisdiction, is quite aggressive in transfer pricing litigation. The aggressive approach of revenue authorities resulting in prolonged transfer pricing litigation creates an uncertainty in the minds of foreign investors, which could impact foreign investments in India. The tax payers thus, expect that the Indian revenue authorities evaluate the transfer pricing issues with a broad mind set giving

due recognition to the economic principles, while adjudicating on the arm’s length nature of the inter-company transactions. At the same time, the tax payers should also adopt best practices to manage the transfer pricing risks. As a matter of best practices, the tax payers should document at the beginning itself as to how the transfer prices are set. They should establish a process that periodically reviews as to how pricing is actually done. Last, but not the least, the tax payers should maintain robust documentation with appropriate functional analysis and selection of comparables so as to mitigate the transfer pricing risk. (Supported by Navneet Kothari, Senior Manager – PwC. The author can be reached at dinesh.supekar@in.pwc.com)

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Auto Monitor

ANALYSIS

Cumulative passenger car sales grew by 33.58 percent in the April-September period of FY11 to touch 922,281 units as compared with 690,434 units in the previous fiscal. Utility Vehicle (UV) sales grew by 20.69 percent in FY11 to touch 154,372 units compared with 127,909 units notched up in the previous fiscal. Multi Purpose Vehicle (MPV) sales increased by 49.32 percent in FY11 to touch 99,865 units compared with 66,878 units in the previous fiscal. Nissan registered highest growth rate in the passenger vehicle segment with 3253.92 percent to 3,421 units as compared with 102 units in the same period in the previous fiscal. Passenger Cars OEMs

2009-10

2010-11

BMW

1,426

2,484

Fiat

12,893

11,863

Ford

13,346

46,377

25,457

41,971

3,711

4,234

14.09%

HSCI

27,413

29,864

8.94%

HMIL

144,151

172,181

2,901 359,910

MSIL Merc

1,492

74.19%

Cumulative Light Commercial Vehicle (LCV) sales grew by 26.9 percent in the April-September period of FY11 to touch 161,644 units as compared with 127,379 units sold in the same period in the previous fiscal. Medium & Heavy Commercial Vehicle (M&HCV) sales grew by 61.59 percent in FY11 to touch 151,197 units compared with 93,566 units notched up in the previous fiscal. Three-wheeler sales increased by 19.87 percent in FY11 to touch 249,095 units as compared with 207,811 units in the previous fiscal. Hindustan Motors notched up the highest growth rate in the LCV with 76.03 percent gain to touch 213 units this fiscal as compared with 121 units in the previous fiscal. Asia Motor Works notched up highest gain in M&HCV segment with 136.21 percent growth to touch 2,877 units as compared to 1,218 units in the corresponding part of the previous fiscal.

LCVs (PC+GC) OEMs

-7.99% 247.50%

ALL

2009-10

2010-11

320

365

4,658

7,713

121

213

M&M

35,440

47,028

19.44%

MNAL

5,875

3,869

33.37%

Piaggio

5,163

5,013

441,899

22.78%

Swaraj

1,732

1,989

14.84%

Tata

77,395

89,750

15.96%

64.87%

Force HM

65.59%

Nissan

102

3,421

Skoda

7,713

8,504

82,866

VECV - Eicher 10.26%

76.03%

32.70% 0.00% -2.91%

4,592

5,232

Audi

956

1,545

1,505

16,108

690,434

922,281

Total

BMW Force Ford GM

2009-10 320 2,826 863 7,203

OEMs

HSCI

108

307

HMIL

ICML

595

380

76.71% 36.51% 75.82% 184.26% -100.00% -36.13%

73,430

80,274

MSIL

2,155

3,807

Merc

222

Nissan

256

2009-10

2010-11

19,072

41,335

AMW

1,218

2,877

JCBL

0.00%

Daimler*

0.00%

MNAL

0.00%

2,909

HHML

99,519

149,865

HMSI

348,883

440,794

M&M 2W

15,954

70,839

SMIL

56,367

101,746

TVS

148,665

211,223

42.08%

Total

672,297

974,494

44.95%

-99.07%

50.59% 26.34% 344.02%

80.51%

Motorcycles/StepThrough OEMs

Swaraj

2,450

3,662

Tata

61,422

88,899

VECV - Eicher

8,606

13,539

VECV - Volvo

432

470

Volvo Buses

283

218

2010-11

743,901

1,198,771

HHML

2,154,783

2,305,198

HMSI

212,640

332,764

IYM

113,168

125,336

0.00% 6.98%

49.47% 44.73% 57.32%

61.59%

151,197

56.49% 10.75% -5.86%

25,455

23,964

SMIL

22,996

18,467

TVS

248,067

309,430

24.74%

3,521,010

4,313,930

22.52%

-19.69%

8.80% -22.97%

93,566

2009-10

61.15% BAL

Total M&M

BAL

116.73%

Merc Benz

35.39%

9,833 1,345

2010-11

136.21%

-40.63%

1,525

765

161,644

33.58%

3,826

2009-10

26.90%

970.30%

2010-11 190

45.02%

M&HCVs (PC+GC)

61.61%

UV OEMs

127,379

3,698

13.94%

ALL Total

2,550

OEMs

56.97%

130,075

TKM

In the April-September period of FY11 cumulative Scooter/ Scooterette sales grew to 974,494 units, from FY10 figure of 672,297 units, a growth of around 44.95 percent. Motorcycles/StepThrough sales increased from 3,521,010 units in FY10 to touch 4,313,930 units in FY11, a growth of around 22.52 percent. Moped/Electric Scooter sales increased from 277,127 units registered in FY10 to 337,882 units in FY11, a growth of around 21.92 percent. Mahindra & Mahindra 2W notched up the highest growth rate in scooters segment this fiscal with more than 344.02 percent increase in volumes from 15,954 units in FY10 to 70,839 units in FY11. It was followed by Suzuki Motorcycles with 80.51 percent growth to touch 101,746 units as compared with 56,367 units in the previous fiscal. Bajaj Auto notched up highest growth rate in motorcycles segment with 61.15 percent increase from 743,901 units in FY10 to 1,198,771 units this fiscal. It was closely followed by HMSI with a growth of 56.49 percent this fiscal from 212,640 units to touch 332,764 units. TVS Motors registered the highest growth rate in mopeds/electric scooters segment with around 23.02 percent increase in volumes from 274,645 units in FY10 to 337,882 units in FY11.

Scooter/Scooterettee

77.88%

2,654

14.06%

3253.92%

Tata

Two-Wheelers

Commercial Vehicles

Passenger Vehicles

1 - 15 November 2010

Total

9.32% 76.66% 344.00% 276.47%

Tata

16,629

19,976

TKM

22,885

32,431

Total

127,909

154,372

3 Wheelers (PC+GC)

Mopeds/Electric

OEMs

2009-10

2010-11

Atul

4,720

8,581

Bajaj

84,950

98,855

OEMs

2009-10

2010-11

20.13% 81.80%

41.71% 20.69%

814

135

M&M

20,751

28,665

Piaggio

86,099

94,197

Scooters

5,273

6,329

TVS

5,204

12,333

Total

207,811

249,095

274,645

337,882

Electrotherm*

2,482

Total

277,127

16.37% -83.42%

Force

23.02% TVS

0.00% 21.92%

MPV OEMs Force

2009-10 0

2010-11 30

0.00% 69.06%

Maruti Tata

44,433

75,117

22,445

24,718

66,878

99,865

10.13% 49.32%

Total

38.14%

337,882

9.41% 20.03% 136.99%

19.87%

* Data not available since August 2008 onwards

1 - 15 November 2010

Auto Monitor

CORPORATE

Piaggio Vehicles launches Ape Mini, passenger variant expected soon Our Bureau Mumbai

iaggio Vehicles (PVPL) recently infused much needed competition in the small commercial vehicle segment with the launch of a fourwheeled goods carrier ‘apé mini’ priced at `1.73 lakh (ex showroom, Pune) pitching it directly against M&M’s Gio. The apé mini is powered by a 441 cc engine with payload of around 500 kg, making it suitable for a range of applications. The company’s current range of three-wheelers is powered by 0.4 litre diesel engines. A passenger carrier version and a CNG variant of the apé mini are likely to follow from Piaggio’s stable in the coming months. ‘The apé mini is a timely addition to our portfolio and will provide us with a crucial missing link in the offering for small traders as well as captive goods

transportation segment,’ said Managing Director, Piaggio Vehicles, Ravi Chopra. He added that there was a major gap in the market with no goods carrier available below `2 lakh until M&M’s Gio launch but there is still ample space in the segment for more players to offer products in the `1.5-2.5 lakh range. He added that alternative fuel options and wider availability of three and four wheeled goods carriers will further aid in growing economic momentum across the Tier II and Tier III towns and cities.

Strong SCV Growth The average monthly volume of ‘small commercial vehicle’ is around 14,000 units per month and growing at around 20-22 percent month on month. ‘We have been facing manufacturing constraints in terms of being able to meet the market demand even with limited availability of

Ravi Chopra, Managing Director, Piaggio Vehicles

Gio across the country. It will take a couple of months before we can have a nationwide launch and availability for the Gio and the Maxximo (priced at around

Bosch lines up aggressive... ity segment and Contd. from P26 around three perthe rider maintain the cent in the below 250 stability of the motorcycc segment. North cle in different weather America and Japan conditions. also have a sizeBosch first introduced the able installation of ABS technology for motorABS in motorcycles cycles in 1994 – ‘ABS 2L1’ at close to 24 and (SECU) weighing around 21 percent respec4.5 kg, which came down tively in 250 cc and to around 2.6 kg by the time above displacement the next generation ABS 5M capacity. (AECU) was introduced by ‘We are ver y Bosch in 1999. The weight optimistic on the of the third generation ABS acceptability of ABS for motorcycle application by OEMs in India – ‘ABS 8M’ (AECU) was fur- Anti-Skid Braking module, designed, developed and manufacas it is an essential ther reduced to 1.4 kg, when tured by Bosch safety feature in high powered it was introduced in 2005. The 250 cc displacement capacity is low displacement bikes available latest ninth generation ABS has less than one percent for a total in India,’ said Regional President been launched with two versions annual production of 52.5 mil– India, Bosch Chassis Systems including a high end eCBS (eleclion in 2010. The ABS installation India, Andreas Berg. tro-hydraulic Combined Brake base is at a much higher level of He added that the low penetraSystem) enabled ABS 9ME weigh16 percent in 1.7 million motorcytion and increasing sophistication ing around 1.7 kg and a base cles with displacement capacity of motorcycles sold in India as version weighing around 0.7 kg. higher than 250 cc manufactured compared to China, the largest in 2010. motorcycle market in the world, The ABS installation base in Lower Mass Acceptance gives immense scope for develmotorcycle is highest in Europe Latest estimates by the compaopment and local manufacturing with close to 36 percent in 250 ny suggest that ABS installation of ABS for motorcycles. cc & above displacement capacin motorcycle with less than

Australian companies enter... Contd. from P16 the top 15 countries globally in the concept prototyping to delivery stage,’ elaborated Mohamed. The Australian automotive market accounts for about one million vehicles per annum, of which local production is limited to 320,000 vehicles annually. The rest is imported. Of this, 50 percent are exported to the Middle East and New Zealand. General Motors, Ford and Toyota are the major players with manufacturing bases in Australia. A handful of Mahindra Bolero SUVs are also imported into Australia, but under a different name. M&M plans to commence exports of its Scorpio SUV fitted with the automatic transmission to Australia by early next

year. Nissan Micra cars are also expected to fi nd their way into Australia from India, in addition to the Hyundai i20, which is being shipped from India to the Australian market. ‘The import duty has become only fi ve percent for passenger cars from January this year compared to 10 percent earlier,’ explained Mohamed. This has made Australia an attractive export destination for several carmakers located in the South East Asian countries like China, India, and Thailand. The Australian market meanwhile has traditionally been a market for large cars but now with concerns for the carbon footprint and conventional fuels rising, consumer preferences have been morphing in favour

of a smaller car. India’s developing status as a small car hub has further tilted the Australian scales in preference for India, boosted by individual relationships shared by carmakers with the Australian Government. In the component manufacturing space, there are about 200 Australian suppliers including domestic and international manufacturers. Of these, some 70-75 local companies are at various stages of the business cycle in their engagement with the Indian market. These span suppliers of OE fitments, performance parts for the aftermarket and suppliers of motor sports components like engine tuning and suspension systems, besides high performance lights for the aftermarket.

`2.3 lakh),’ said Senior Vice President, Sales & Customer Care, Mahindra & Mahindra, Arun Malhotra. Malhotra added that the

value proposition with smallersized commercial vehicles has to be very clear in addition to wider availability and service network. These factors are likely to act as a major barrier to entry for players seeking an entry into the segment. To meet that very requirement, PVPL is planning to expand the existing dealership network by around 50-60 new dealers over the next one year. It currently has a network of 760 touch points, including exclusive dealers and service centres across the country. PVPL sold 18,670 units for the month of August 2010, resulting in a year on year growth of 5.24 percent, while the company’s cumulative sales stood at 80,016 units. It three-wheeler sales for the month of August 2010 stood at 17,964 units, a growth of seven percent. The cumulative threewheeler sales up to August 2010 stood at 76,131 units.

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1 - 15 November 2010

Auto Monitor

CORPORATE

Precision Camshafts looking to... Bajaj, Yamaha launch new variants Contd. from P1

ajaj Auto (BAL) and India Yamaha Motors (IYM) recently launched new variants of their popular motorcycles, ahead of the festive season. BAL added metallic orange colour on its Pulsar range, across the Pulsar 180 cc, 220 cc and 220F cc variants. The domestic volumes in for Pulsar in Q2FY11 stood at 67,468 units, up 56 percent over the same period last year and outperforming the market aver-

age of around 32 percent in the premium segment, according to a company release. IYM, on the other hand, announced the launch of FZ series limited edition bikes under the Midnight Special version. The new version sports rich and smart graphics, and will be available in an all black colour concept with golden alloy wheel. Yamaha will produce only 1,000 units of each of FZ, FZ-S and Fazer models and the aluminium plate on the fuel tank will bear the vehicle serial number (1-1000) to make

Ashok Leyland gets new Chairman

shok Leyland, the fl agship company of the Hinduja Group has appointed Dheeraj G Hinduja as its Chairman, who has taken over the reins from RJ Shahaney, who was Chairman of the Company since August 1997. Co-Chairman of the company for the past three years, Dheeraj G Hinduja is a third-generation member of the Hinduja family. He has over a dozen yearsâ&#x20AC;&#x2122; experience at strategic and leadership levels covering a wide variety of businesses across diverse sectors such as automotive, energy, infrastructure, fi nance and banking, IT and ITes, media and healthcare, a company statement stated.

the bike look as exclusive as the customer himself, claimed a company release. The limited edition Fazer, FZ-S and FZ16 models will be available at ex-Delhi prices of `74,500, `69,500 and `67,500 respectively.

China insist on suppliers having some local presence in China and we are working towards that. We have got positive feedback from potential customers in China and are evaluating the most suitable option to establish a presence, including a joint venture with a local component supplier. But we are yet to decide on an entry strategy,â&#x20AC;&#x2122; said a company official on the condition of anoymity. The company is also debottlenecking and expanding existing capacities for domestic and export markets in the light of robust demand from the domestic market. By the middle of next year, the company would be manufacturing and supplying around 1.1 million camshafts per month including 850,000 to 900,000 units for the domestic customers and another 200,000 to 250,000 cam-

shafts per month for exports. Jain expects further pick up in domestic and export volumes by the middle of next year and is looking to establish a fourth foundry and assembling facility to meet the additional requirement for 300,000 to 350,000 units by middle of next year. The company had set up an additional foundry early this year taking its total installed manufacturing capacity for camshafts to around 900,000 units. Another new facility with capacity of around 300,000 per month has come on stream few months back. The existing facilities are expanded to cater to additional requirements in the backdrop of growing demand. Currently, the company is working at close to 95 percent capacity utilisation and has received additional orders for existing and newer car platforms â&#x20AC;&#x201C; most notably from GM,

Tata Motors and Hyundai for their Indian and global requirements. It has also begun exporting to newer markets in Eastern Europe and Uzbekistan, leveraging its existing relationship with customers. The company is a single source supplier to Tata Motors, Mahindra & Mahindra and Hyundai in India. The company is hoping to take around 15 percent of the global camshafts market by FY11 by churning out close to a million camshafts of different sizes every month. The company manufactures camshafts using chilled casting process with manufacturers like Southern Auto Castings in Chennai and Mahle in Pithampur as its competitors. The company notched turnover of around `160 crore last fiscal compared to `125 crore in the previous fiscal. The company has around 85 percent share in the domestic camshafts market.

1 - 15 November 2010

GLOBAL WATCH

Auto Monitor

Overcapacity concerns as Chinese OEMs plan increased production B

ooming auto sales in China have spurred manufacturers to step up production so fast that concerns over ‘blind investment’ and overcapacity in the sector are emerging, analysts told AFP. China’s auto market overtook the United States in 2009 as the world’s largest and will remain so this year with up to 17 million vehicles expected to be sold. Analysts believe the Chinese market potential remains huge in the world’s most populous nation as the percentage of people owning cars is still relatively low. Sales in 2010 are expected to increase by between 25-30 percent, after a massive 46 percent surge last year, as an emerging middle class

Porsche, VW integration faces delay

erman luxury carmaker Porsche has said its planned absorption into Volkswagen by the end of next year, may not materialise due to some unresolved legal and tax issues related to the deal. Reuters reported that the company plans to carry out a €5 billion capital increase between January and June 2011 and will ask shareholders at its annual general meeting on 30 November to approve issuing up to 1.25 billion new shares for each of its two classes of stock. Mid-October, Porsche unveiled preliminary results that showed its majorityowned sports car business drove in a near-unheard of 23 percent operating margin during the fiscal fourth quarter. Earlier, Chief Executive Officer, Volkswagen, Martin Winterkorn too hinted he may put on hold a combination with Porsche to fi rst resolve US lawsuits and German tax disputes. ‘The legal proceedings may drag on for some time to come until a fi nal decision is reached. For that reason, the planned merger could possibly be delayed,’ Winterkorn, also CEO of Porsche’s holding company, said. It was in August 2009 that VW had agreed to join with Porsche after the sports carmaker’s debt tripled to more than €10 billion ($14 billion) following a failed bid to buy Europe’s largest carmaker by securing stock through options trading. VW has since purchased 49.9 percent of Porsche’s operating unit for €3.9 billion, setting the stage for a merger in 2011. Porsche is being sued by US-based short sellers of VW stock who claim the COMAPNY secretly cornered the market in VW shares and later caused them more than $1 billion in losses. VW’s merger with Porsche is also being hampered by negotiations with German tax authorities over the tax-exempt status of profits from Porsche’s options transactions. As part of the original deal, VW also has the option to pay cash for the remaining stake in Porsche’s automobile operations without merging with the holding company. Under this scenario, the holding company would continue to manage Porsche’s VW stake and be legally responsible for the pending US litigation.

snaps up cars along with other consumer status symbols. At this stage, the international joint ventures in China just don’t have enough capacity to build all the cars they could sell, AFP quoted Klaus Paur of TNS Research International as saying. ‘Much of the current growth was coming from China’s inland provinces where the potential for auto sales is the biggest,’ he said. To meet the rising demand, foreign automakers last year began announcing plans to increase their production capacity. While gearing up to open its 10th factory in China this year, German auto giant Volkswagen also announced it will open an 11th production facility in 2013.

PSA Peugeot Citroen will boost production capacity at its joint venture plant with Dongfeng from 450,000 units to 750,000 units, while also setting up a second joint venture plant with Chinese automaker Chang’an in Shenzhen. Since the beginning of last year, Nissan, Toyota, BMW, Hyundai, the Chinese automaker FAW and others have all announced plans to build new factories.

Negative Market Competitiveness Local provinces and cities are also adopting numerous initiatives to encourage the expansion of production facilities. But the pace of investment in car production has raised concerns by

the National Development and Reform Commission (NDRC), China’s powerful economic planning agency. ‘Serious overproduction capacity will lead to negative market competitiveness, a loss in enterprise efficiency, factory stoppages and other problems,’ a leading commission official, Chen Bin told the National Business Daily while warning of ‘blind investment’ in the sector. Production capacity of 31 million vehicles projected for 2015 by 30 major manufacturers is nearly double current capacity, but remains lower than the total capacity projected by China’s regional governments, the commission said.

Paur, meanwhile, raised concerns that there will be too much capacity in two or three years ‘because the market may be slowing down’. Projecting market trends is always difficult for auto makers who often need up to two years to build new plants, he added. Market analyst, JD Power, John Zeng on the other hand said this is not the fi rst time the Government was making such an alert. This happens every three to four years, he said. He believes OEMs are paying attention to market swings and will readjust their investment if necessary, adding that announced increases in production capacity were not always realised.

Auto Monitor

1 - 15 November 2010

GLOBAL WATCH

Continental creates ‘Simplify Your Drive’ technology G

lobal major, Continental of Germany has developed a system that offers, with a push of a button, a sports car, eco-friendly car and more conventional car – all in one. Each pre-configured mode setting changes the driving dynamics of the car, as well as the look and feel of the interior. Continental’s technolog y represents the continued incorporation of electronics in today’s vehicles, a trend being highlighted at the recent Society of Automotive Engineers Convergence 2010 conference at Cobo Center in Detroit. At Continental, the new feature called ‘Simplify Your

Drive’ is being demonstrated in a Volkswagen Passat. It was

shown recently to reporters at the supplier’s US headquarters

in Auburn Hills, and is being demonstrated to prospective cli-

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Process Advisors

Corporate India has been making its mark in the global market. Now, it aims to make another, very positive one, on the environment. Maintaining ecological balance is high on its agenda and India Inc. is willing to walk that extra mile to achieve it. If you believe that your company has deployed innovative processes to ensure a positive impact on the environment, please nominate for the Siemens EcovativesTM Awards 2010. Visit http://ibnlive.in.com/siemensecovatives/ to participate and let the world know of the change that you managed to bring. Your effort will go a long way in inspiring others. Last Date for Nomination 25th October 2010.

ents before it returns to Germany in November. Development began about two years ago, said Senior Manager, Business Development for Interior Electronics Solutions, Continental, Javier Gonzalez. The idea of pushing a button and having the car make the adjustments came from digital cameras, Gonzalez said. The user picks a setting, and the camera makes the changes, he said. Each of the three car modes has different engine and transmission settings and markedly distinctive instrument clusters as well as centre console graphics and information, said Senior Manager, Systems Projects, Continental, Stephan Wetzel. In the ‘Comfort’ mode, the transmission shifts early for a smoother, quieter ride. The chassis, accelerator and steering wheel are set for a softer, more cushioned response. The gauges and ambient lighting are a soothing blue. There is even a message suggesting the driver buy flowers for someone nice. In the ‘Eco’ setting, displays are in green, and there are several adjustments to save fuel. Gears shift early to get to higher gears; an engine inhibitor reduces available horsepower from 300 on the demo vehicle to 180. The car is lowered slightly for better aerodynamics, and there’s increased resistance on the accelerator pedal to deter a lead foot. The eco-friendly driver’s behaviour is reinforced by a green ‘magic eye’ that grows larger on the screen with careful driving. To provide a further incentive for continued prudent driving, the leaves of a cloverleaf are coloured in. At the other end of the spectrum, the ‘Sport’ profile is designed to deliver performance for the more aggressive driver. The setting releases the full power of the engine, the car shifts later and closer to redline, and the bright red gauges mimic the gauges on a Formula One car – even measuring the G-forces on each turn. The feature is a logical extension of systems already on some vehicles today. There are luxury cars that offer a sport mode for a more spirited drive, hybrids with an eco-friendly setting and vehicles able to alter the response to different terrains such as snow or mud. The trick is making the system easy to use and ensuring each mode feels noticeably different and is effective, Brinley said, as opposed to being a jack of all trades but master of none.

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1 - 15 November 2010

Auto Monitor

ADVERTISERS’ LIST

Pg No....... Advertiser ..........................................................................Tel ..........................................E-mail ..............................................................Website 30 ............ ADEA-Automotive Dealership Excellence Awards ..............+91-22-30034650...................prachi.mutha@infomedia18.in 11 ............ Assab Sripad Steels Ltd ......................................................+91-44 24951980...................chennai@assabsripad.com ..............................www.assabsripad.com 37 ............ Atlas Copco (India) Ltd .......................................................+91-20-30722222 ..................marcom@in.atlascopcocom ............................www.atlascopco.com 6 .............. Auroral Sinter Metals Co., Ltd. ...........................................+886-37-542-988 ...................sh69032.tw@msa.hinet.net.............................www.auroral-sinter.com.tw 25 ............ 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Guhring India Private Limited ...........................................+91-80-40322500 ..................info@guhring.in .............................................www.guhring.in 5 .............. Haas Automation India Pvt Ltd .........................................+91-20-32935433 ...................sales@haasindia.com ......................................www.HaasCNC.com 32 ............ Hitech Manufacturing Show ..............................................+91-9820373804 ...................hitech@infomedia18.in ................................... 12 ............ Igus India Pvt Ltd ..............................................................+91-80-39127800 ..................info@igus.in ....................................................www.igus.in 39 ............ Indian Machine Tool Manufactures’ Association ...............+91-80-66246600 ..................bala@imtma.in................................................www.imtex.in 19 ............ ISMT Limited .....................................................................+91-20-66024901 ..................sachin.joshi@ismt.co.in ...................................www.ismt.com 23 ............ Jyoti CNC Automation ........................................................+91-2827-287081...................info@jyoti.co.in ...............................................www.jyoti.co.in 41 ............ Klipco Pvt Ltd ....................................................................+91-22-28684221 ..................klipco@mtnl.net.in .........................................www.klipcohoseclamps.com 7 .............. Lanxess India Pvt.Ltd. .......................................................+91-22-21729200 ............................................................................................www.lanxess.in 3 .............. 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Padmini VNA Mechatronics Pvt. Ltd..................................+91-124-3207398 ...................sales@padminiengg.com ................................www.padminivna.com 24 ............ Plexium International .......................................................+91-20-26650219 ...................info@plexiumindia.com ..................................www.autoplas.in 33 ............ Siemens Product Lifecycle Managemen ............................+91-124-4092244...................sundaram.mallik@ugs.com .............................www.siemens.com/plm 41 ............ Sreelakshmi Traders ..........................................................+91-44-24343343...................sreelakshmitraders@gmail.com ......................www.sreelakshmitraders.com 36 ............ Streamline Marketing Group .............................................+971-444-75357 ....................mail@commvehicles.com................................www.commvehicles.com 22 ............ Tata Motors Ltd. ................................................................+91-22-66561820............................................................................................www.prima.tatamotors.com 8 .............. Tech-Cast Mfg. Corp. .........................................................+886-5-591-6351 ...................sales@techcast.com.tw ...................................www.techcast.com.tw 31 ............ Tvs Srichakra Limited ........................................................+91-4522-420461 ..................prathap1234@yahoo.co.in ..............................www.tvstyres.com 42 ............ Ultima Media Ltd...............................................................+44 (0)20 8987 0902..............elisabeth.quesseveur@ultimamedia.com ......www.automotivelogisticsindia.com 40 ............ Web 18 Software Services Ltd. ...................................................................................................................................................................http://ibnlive.in.com/siemensecovatives 13 ............ Yamazaki Mazak India Pvt Ltd ..........................................+91-20-27351417 ...................sudhir_patankar@mazakindia.com ................www.mazak.com

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PRODUCT INDEX

1 - 15 November 2010

Product ..................................................................................................................... pg no.

Accelerated pedal sensor accessories ..........................................................................................15

Glide Coating Machines ................................................................................................................9

ADEA-Automotive Dealership Excellence Awards ........................................................................30

Gun Drills .....................................................................................................................................BIC

AMS India Conference ..................................................................................................................42

H Frame Power Press ...................................................................................................................17

Auto Parts ....................................................................................................................................17,BC

Hammers......................................................................................................................................17

Auto Serve 2010 ...........................................................................................................................38

Hollow Bars ..................................................................................................................................19

Automation ..................................................................................................................................9

Horizontal CNC Machines .............................................................................................................23

Automobile Parts .........................................................................................................................6

Horizontal Machining Center .......................................................................................................5,23

Autoplas 2010...............................................................................................................................24

Hose Clamp ..................................................................................................................................41

Axles .............................................................................................................................................BC

Imaging & Vision Systems ............................................................................................................9

Bearings .......................................................................................................................................12

Kx Series .......................................................................................................................................23

Billet Shearing Machines ..............................................................................................................17

Kxg Series .....................................................................................................................................23

Bolts .............................................................................................................................................BC

Lathes ...........................................................................................................................................5

Building Automation ....................................................................................................................9

Logistics........................................................................................................................................16

Cable Carriers ...............................................................................................................................12

Machinery Steel ............................................................................................................................11

Cable Connectors .........................................................................................................................12

Marking Solutions ........................................................................................................................27

CAD/CAM ......................................................................................................................................33

Metal Cutting Tools ......................................................................................................................29

Camera .........................................................................................................................................8

Milling Centres .............................................................................................................................5

Castings Forgings .........................................................................................................................17

Milling Cutters ..............................................................................................................................BIC

CED Coating Machines ..................................................................................................................9

Modular Tooling System ...............................................................................................................BIC

C-Frame Power Press ....................................................................................................................17

Mx Series ......................................................................................................................................23

Chains...........................................................................................................................................12

Nuts ..............................................................................................................................................BC

Chemlok Coating Machines ..........................................................................................................9

Nx Series.......................................................................................................................................23

Clamps..........................................................................................................................................FIC

Paint Shop Equipments ................................................................................................................9

CNC ...............................................................................................................................................5,23

Paint Shop Machines ....................................................................................................................9

CNC Cutting Machines ..................................................................................................................9

Parking Sensor .............................................................................................................................8

CNC HMCS .....................................................................................................................................23

Powder Matallergy Products ........................................................................................................6

CNC Laser Cutting Machines .........................................................................................................9

Power Chucking Cylinders ............................................................................................................21

CNC Lathes ...................................................................................................................................21

Pre-treatment Systems .................................................................................................................9

CNC Machines ...............................................................................................................................23

ProďŹ le Projectors .........................................................................................................................12

CNC Oval Turning Centers.............................................................................................................23

Quality Steel .................................................................................................................................11

CNC Oxy Fuel Cutting Machines....................................................................................................9

Reamers .......................................................................................................................................BIC

CNC Plasma Cutting Machines ......................................................................................................9

Rear Axles.....................................................................................................................................BC

CNC Turn Mill Centers ...................................................................................................................23

Roatry...........................................................................................................................................5

CNC Turning Center ......................................................................................................................23

SCADA & DCS Implementation .....................................................................................................9

CNC Vertical Machining Center .....................................................................................................23

Self Adhesive Tapes ......................................................................................................................41

CNC/VMC Machines ......................................................................................................................13

Solid Carbide Drills.......................................................................................................................29

Coating Machines .........................................................................................................................9

Solid Carbide Drills With IC ..........................................................................................................29

Coating Plants ..............................................................................................................................9

Solid Carbide Mills........................................................................................................................29

Coating Systems............................................................................................................................9

Solid Carbide Reamers .................................................................................................................29

Commercial Vehicles ....................................................................................................................22

Solid Carbide Reamers With IC .....................................................................................................29

Commerical Vehicles- Middle East ...............................................................................................36

Solid Carbide Special Drills ..........................................................................................................29

Compression Springs ....................................................................................................................3

Solid Carbide Special Mills ...........................................................................................................29

Compressor ..................................................................................................................................37

Solid Carbide Special Reamers .....................................................................................................29

Connectors ...................................................................................................................................12

Speciality Chemicals.....................................................................................................................7

Countersinks ................................................................................................................................BIC

Stainless Steel Gear Parts .............................................................................................................6

Cutting Machines..........................................................................................................................9

Strip Steel .....................................................................................................................................11

Cylindrical Grinders ......................................................................................................................21

Sx Series .......................................................................................................................................23

Diamond Tools .............................................................................................................................BIC

Taps ..............................................................................................................................................BIC

Dip Spin Coating Machines...........................................................................................................9

Testing Machine ...........................................................................................................................35

Drilling Tools ................................................................................................................................BIC

Tool Bits .......................................................................................................................................11

DVR...............................................................................................................................................8

Tool Steel ......................................................................................................................................11

EGR Valve .....................................................................................................................................15

Torsion Springs .............................................................................................................................3

Electronic Control Unit .................................................................................................................15

Transmission Gears ......................................................................................................................6

Engineering Expo .........................................................................................................................1

Truck Tyres ...................................................................................................................................25

Ex Series .......................................................................................................................................23

Turrets ..........................................................................................................................................21

Exhibition - Hi Tech Manufacturing Show ....................................................................................32

Two Wheeler Tyres........................................................................................................................25

Exhibition-Imtex 2011 ..................................................................................................................39

Tyres .............................................................................................................................................25, 31

Exhibition-Tooltech 2011 .............................................................................................................39

Vaccum Pump ..............................................................................................................................15

Extension Springs .........................................................................................................................3

Ventilators ....................................................................................................................................41

Factory Automation .....................................................................................................................9

Vertical Line Series .......................................................................................................................23

Fluidised Bed Coating Machines. .................................................................................................9

Vertical Machining Center ............................................................................................................5, 21

Forging Press ................................................................................................................................17

VMC-Linear Series .........................................................................................................................23

Friction Drop Hammers ...............................................................................................................17

Wire Forms ...................................................................................................................................3

Friction Screw Press .....................................................................................................................17

Wireless ........................................................................................................................................8

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

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1 - 15 November 2010

GLOBAL WATCH

Auto Monitor

International auto round-up EUROPE

AMERICAS

Peugeot lifts full-year forecast

Canadian network to develop complex auto software

French automaker Peugeot-Citroen raised its full-year earnings forecast recently, as it reported a consensus-beating rise in third-quarter revenue, the Wall Street Journal reported. Europe’s second-largest carmaker after Germany’s Volkswagen AG said it now expects to achieve an operating profit for 2010 greater than €1.5 billion and that its core automobile division’s operating earnings should break even in the second half. The company based its earnings-forecast revision on a more optimistic outlook for its main markets. It now expects the European automobile market to contract by five percent this year, compared to a previous estimate of a seven percent decline, and expects the Chinese market to surge by almost 20 percent, while Latin America should see an increase of close to 10 percent.

A new Canadian network is being set up to help researchers develop complex software systems for electric vehicles. The $16.6 million network will be collaboration between universities and industry, including General Motors of Canada and IBM Canada. McMaster University will lead the effort and will be joined by researchers at other universities across the country, media reports said. It will be backed by a five-year grant of $10.5 million from a federal government initiative called Automotive Partnership Canada. Their work will help integrate several pieces of complex software in vehicles, including braking, stability, safety and fuel systems. These systems are even more complex in electric vehicles, and GM says the research will help develop more widespread use of the green technology.

Autoliv buys Delphi’s share of Chinese venture

Reuters recently reported that the Fiat Group of Italy will invest 10 billion reais ($6 billion) in Brazil by 2015 in operations that include production of cars, auto parts and agricultural machinery. Seventy percent of the total will be invested in cars, with the company expecting in 2011 to unveil 20 new models or upgraded version of current ones. Further details would emerge by the end of the year. Fiat’s Brazilian factory is operating close to the limits of its 800,000-unit-per-year capacity. To meet the strong demand in Brazil, Fiat expects to triple production in the next two years at its Argentina facility.

Swedish auto safety company Autoliv recently acquired Delphi’s 51 percent share in Chinese seatbelt maker Beijing Delphi Automotive Safety Products. Without disclosing terms of the deal, President and CEO, Autoliv, Jan Carlson said the purchase strengthens the company’s commitment to the Chinese auto industry. Autoliv’s Chinese sales are expected to grow 50 percent this year to more than $700 million. According to Autoliv, the operations are expected to generate approximately $30 million of annualised sales in 2010 and employ 240 people. BDS is a two-year-old joint venture between Delphi and Beijing Hainachuan Automotive Parts. Its main customers are Hyundai Motor and Kia and their Chinese partners.

Porsche plans a hybrid in every model line To reduce its fleet CO2 emissions, Porsche is counting on a hybrid drive, with plans being put in place to have a hybrid drive in every model line, Development Chief, Porsche, Wolfgang Duerheimer was recently quoted as saying. The German carmaker had, earlier this year, launched a hybrid version of its Cayenne SUV. A Panamera sedan will go on sale with the Cayenne’s hybrid technology in 2011. Porsche’s fi rst electrically powered sports car, the 918 Spyder, will come next, with small production runs planned in three to four years. Duerheimer held out the prospect of hybrid versions of the 911, the Boxster and Cayman, but did not give a time frame.

Volvo Trucks initiates field testing with methane diesel gas Volvo Trucks will initiate public field testing with methane diesel trucks that can run on liquefied methane gas (LNG). At the same time, Sweden’s fi rst fi lling station for liquefied methane gas will open at Stigs Center in Göteborg. Volvo said recently that trucks running on liquid gas combined with methane diesel technology has up to four times longer driving range compared to most traditional gas trucks. Three Volvo FM trucks with 13-litre engines are currently being field tested. The technology is based on Volvo’s proven Euro V diesel engine, which has been converted for gas operation. The field test trucks are equipped with special tanks for liquefied methane gas. When liquid methane and diesel are used in a ratio of 75-25, a truck performing long haul or intercity duties has an operating range 500 to 1000 km, depending on driving conditions. This is twice the operating range of methane diesel vehicles running on compressed gas and four times that of gas trucks with Otto (spark ignited) engines.

Russia to top Europe’s auto market by 2014 Russian Industry and Trade Minister, Viktor Khristenko has said the country is poised to become the largest auto market in Europe by 2014 as economic recovery boosts sales. Two years back, analysts predicted that Russia would become Europe’s largest car market by 2010, but that was before the global fi nancial crisis squeezed demand, erasing two years’ rapid growth. Khristenko told legislators that by mid-2013 the market would return to pre-crisis volumes, and in 2014 will be the number one market in Europe, with more than three million cars sold. The Ministry expects car production to reach 1.3 million units in 2010, while sales are expected to top 1.7 million vehicles.

Electric cars make their debut on Finland’s streets Finland got its fi rst ThinkCity electric cars, less than a year after production began at Valmet Automotive’s factory in Uusikaupunki, Finland, in December 2009. The company behind these electric cars, Norway’s Think Global, manufactured the fi rst prototype of the ThinkCity electric car in 1991. The car entered serial production eight years later with the help of Ford. The Finns claim that the ThinkCity is the world’s fi rst European Union-approved and European Commission-certified electric car. The completely carbon-emission-free and nearly silent ThinkCity electric car can reach a top speed of 110 kmph. The car, which can be charged up at an ordinary electric socket, has a driving range of 160 km. The price of the car is about €50 000.

Fiat Group to invest $6 billion in Brazil by 2015

Honda recalls autos in Brazil due to gas pedals Honda Motor recently announced recalls of 126,774 City and New Fit models of cars because of potential problems with the acceleration sensor. The entrance of dirt and particles into the acceleration pedal mechanism may cause problems in reducing the speed of the automobile and may cause accidents, Honda said in a statement on its website. A worldwide problem, recalls have plagued the Brazilian auto industry this year. Other Brazilian manufacturers hurt by recalls this year were local units of Toyota, Fiat, Volkswagen and Ford. Recalls in the world’s fourth-largest car market have affected more than 800,000 Brazilian-made motor vehicles so far in 2010, with problems ranging from faulty ball bearings to bad window switches.

Toyota mulling setting up new factory in Mexico Toyota Motor is considering setting up new facilities in Mexico in 2013 to produce small cars for the North American market, the Asahi Shimbun reported. The paper said that the move would be the Japanese automaker’s latest attempt to contend with the strong yen. In Mexico, Toyota currently produces small trucks mainly for export to the US.

Harley-Davidson 3Q profit up but sales drop Harley-Davidson recently reported that net income more than tripled in the third quarter, despite a 7.7 percent drop in retail sales because of weak consumer spending, as the company returned its fi nancing unit to profitability, the Wall Street Journal reported. The Milwaukee, US-based motorcycle manufacturer reported net income of $88.8 million in the latest quarter, up from $26.5 million a year earlier. The main factor in the improved earnings was a swing to operating income of $50.9 million from fi nancial services, mainly lending to fi nance motorcycle purchases, from a loss of $31.5 million in the year-earlier quarter.

Navistar, Auto Union reach tentative deal on four-year contract Commercial truck maker Navistar International (NAV) and the United Auto Workers Union have reached a tentative agreement on a four-year contract, the company recently said. Dow Jones reported that no details of the deal were released by the company or the union. The agreement is subject to a ratification vote by union members at six Navistar sites. A majority of the members voting on the tentative contract must approve it for the deal to become binding. The new contract would replace a three-year deal that expired on 1 October. Union members made no moves toward striking and continued to report to work after the contract expired.

GM partners with Envision Solar for Chevy Volt recharging Envision Solar of San Diego has partnered with General Motors to provide solarpowered charging ‘trees’ to GM dealers selling its soon-to-be released Chevy Volt. The Volt is a plug-in electric vehicle that runs on a 16-kilowatt lithium-ion battery and a range-extending gas engine. Envision solar trees track with the sun to maximise energy production. Set up in one- and six- parking-space configurations, each space can generate enough electricity to fully charge one Volt in a day. Although some of the trees are transportable, most will be tied in to the grid. The charging stations within the trees are provided through existing providers, such as Ecotality and Coulomb Technologies, and will consist of Level 1 (120-volt) and Level 2 (240-volt) chargers. Each charge will cost about one-third as much as refuelling a gas vehicle.

ASIA Hyundai Motor forms CV venture in China South Korea’s largest automaker, Hyundai Motor, plans to form a 500 billion won ($443 million) venture with Ziyang Nanjun Automobile in China next year to expand its marketshare in the world’s biggest auto market. An agreement to form a partnership was recently signed to build commercial vehicles, in which each will have a 50 percent share, Hyundai said in an e-mailed statement. The venture will take over Ziyang’s CV operation, which has annual output capacity of 120,000 vehicles. It will target 90,000 heavy truck and bus sales in China next year, rising to 300,000 in 2015, the statement said. Sales of trucks and buses in China is expected to reach 4.5 million units this year and may total 5.5 million in 2015, led by development in inland regions, Hyundai said.

Toyota to make Prius in Thailand Global market leader, Toyota Motor, announced its plans to start producing its Prius hybrid in Thailand in November this year — the auto maker’s latest move to expand production overseas as the strong yen bites into profit. The plan to begin making the Prius at a plant near Bangkok marks the fi rst time Toyota’s flagship hybrid will be mass produced outside of Japan, where the company produced around 400,000 of the cars last year. Toyota makes a small number of Prius models in China, but doesn’t mass produce the car in China and assembles the vehicles using components from Japan. The Thailand

plan is part of the company’s efforts to sell one million hybrid vehicles in the coming decade. Toyota aims to sell at least 700,000 hybrids this year world-wide.

China targets one million electric cars a year by 2020 A recent report from State news agency, Xinhua, said China’s annual output of electric vehicles with lithium-ion batteries is expected to reach one million units by 2020. The Ministry of Science and Technology will shortly issue a new policy framework for 2011-2015 to help boost production, and the Government aims to spend 100bn yuan ($15 billion) over the next 10 years to support the fledgling industry. China already has a pilot programme set up to promote EVs in 25 cities including Shanghai, Changchun, Shenzhen, Hangzhou and Hefei, with the Government now providing subsidies of up to 60,000 yuan ($9,000) for the purchase of zero emission vehicles.

Hitachi, Johnson Controls partner in lithium-ion auto batteries Hitachi signed a deal with Johnson Controls to develop and manufacture batteries for green vehicles. The areas of co-operation will span sales, marketing and standardisation, and the companies may also work together in energy storage technology, The Associated Press reported. Hitachi, which has produced 1.2 million lithium-ion battery cells for hybrid buses and trucks and plans to supply GM as well.

Auto Monitor

1 - 15 November 2010

SIAM DATA

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

Production For the month of September 2009

2010

Cumulative April-September 08-09

A: Passenger Cars- No of seats not over 6 A1: Mini - (Upto 3400 mm) 3,112 3,572 18,304 Maruti Suzuki India Ltd (Maruti 800 ) Tata Motors Ltd (Nano) 2,549 5,696 6,775 Total 5,661 9,268 25,079 A2: Compact (3401-4000mm Fiat India Automobiles Pvt Ltd (Palio, Fiat500,Grande Punto) 1,726 933 8,220 Ford india Pvt Ltd ( Fusion, Figo ) 143 6,711 455 General Motors India Pvt Ltd (Beat, Spark,U-VA) 5,167 5,558 22,403 Honda Siel Cars India ltd (Jazz) 300 180 6,249 Hyundai Motors India Ltd(Santro,Getz, i10, i20) 49,937 49,342 249,198 Maruti Suzuki India Ltd (Alto,Wagon R,Zen,Swift, A-Star, Ritz) 62,269 80,398 366,799 Nissan Motor India Pvt Ltd (Micra) 0 5,792 0 SkodaAuto india p.ltd ( Fabia ) 721 262 2,126 Tata Motors Ltd (Indica) 9,868 9,314 55,459 Volkswagen India Pvt Ltd (Polo) 0 2,992 0 Total 130,131 161,482 710,909 A3: Mid -Size (4001-4500mm) BMW India Pvt Ltd (Z4 Roadster) 0 0 0 Ford India Pvt Ltd (Ford ikon,Fusion,Fiesta) 2,984 2,120 13,657 General Motors India Pvt Ltd (Cheverlet Aveo NB) 403 304 1,412 Hindustan Motors Ltd (Ambassador, Lancer,Cedia) 739 568 3,711 Honda Siel Cars India Ltd (City) 4,407 5,564 19,007 Hyundai Motors India Ltd (Accent,Verna) 4,060 5,403 20,481 Mahindra Renault Pvt Ltd (Logan) 965 1,045 3,525 Maruti Suzuki India Ltd (SX4,Dzire) 7,383 10,850 44,498 Nissan Motor India Pvt Ltd (Nissan 370Z) 0 0 0 Tata Motors Ltd (Indigo,Marina) 178 2,811 2,542 Volkswagen - Audi (TT, R8) 0 0 0 Volkswagen India Pvt Ltd (Beetle) 0 1,020 0 Total 21,119 29,685 108,833 A4 : Executive (4501-4700mm) BMW india pvt Ltd (3 Series) 108 137 608 Fiat India Automobiles Pvt Ltd (Linea) 1,041 711 5,773 General Motors India Pvt Ltd (cheverlet Optra, Cruze) 7 1,141 832 Honda Siel Cars India Ltd (Civic) 540 604 2,538 Hyundai Motors India Ltd (Elantra) 0 0 0 Mercedes-Benz India Pvt Ltd (C-Class,SLK Roadster, 47 219 795 CLK Cabriolet, E-Coupe) Skoda Auto India Pvt Ltd (Octavia,Laura) 498 301 2,524 Toyota Kirloskar Motor Pvt Ltd (corolla) 910 1,055 4,543 Volkswagen - Audi (Q5) 0 0 0 Volkswagen India Pvt Ltd (Jetta) 0 567 273 Total 3,151 4,735 17,886 A5 : Premium (4701-5000mm) BMW india pvt Ltd ( 5 & 6 Series) 100 340 742 Honda Siel Cars India Ltd ( Accord ) 300 300 1,440 Hyundai Motors India Ltd ( Sonata ) 30 20 285 Mercedes-Benz India Pvt Ltd (E-Class, CLS) 127 254 404 Nissan Motor India Pvt Ltd (Teana)** 0 0 0 Skoda Auto India Pvt Ltd (Superb) 190 325 1,344 Toyota Kirloskar Motor Pvt Ltd (Camry ) 0 0 0 Volkswagen - Audi (A4,A6)* 0 0 0 Volkswagen India Pvt Ltd (Passat, Touareg) 0 57 55 Total 747 1,296 4,270 A6: Luxury (5001mm&abve) BMW india pvt Ltd (7 Series ) 0 0 0 Mercedes-Benz India Pvt Ltd ( S-Class) 16 28 207 Volkswagen - Audi (Q7,A8) 0 0 0 Volkswagen India Pvt Ltd (Phaeton) 0 0 0 Total 16 28 207 Total A 160,825 206,494 867,184 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) 3 8 8 Ford India Pvt Ltd (Endeavour) 275 278 884 General Motors India Pvt Ltd (Tavera, Captiva) 596 817 2,665 Hindustan Motors Ltd (Pajero) 107 333 761 Honda Siel Cars India Ltd (CR-V) 0 0 0 Hyundai Motors India Ltd (Tucson) 0 0 0 Mahindra & Mahindra Ltd (Scorpio, Bolero, 6,964 8,990 43,997 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) 1,608 1,979 9,449 Toyota Kirloskar Motor Pvt Ltd (Innova,Prado) 2,541 2,992 10,877 Total 12,094 15,397 68,641 (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) 123 96 901 International Cars & Motors Ltd (Rhino) 94 50 463 Mahindra & Mahindra Ltd (Scorpio, Bolero, 3,937 6,165 26,175 Soft Tops, Hard Tops, Xylo) Maruti Suzuki India Ltd (Gypsy) 217 331 1,352 Tata Motors Ltd (Sumo, Safari, Winger) 230 1,005 1,816 Toyota Kirloskar Motor Pvt Ltd (Innova) 2,110 2,047 11,880 Total 6,711 9,694 42,597 Total B1 18,805 25,091 111,238 B2: Max Mass upto 5 tonnes (a) : No of seat inculding driver not exceeding 13(M2(A1)) Force Motors Ltd (Trax, Traveller) 570 750 2,813 General Motors India Pvt Ltd (Tavera) 553 684 2,613 Mahindra & Mahindra Ltd (Bolero, Soft Tops, Hard Tops) 1,119 284 6,759 Tata Motors Ltd (Sumo, Winger) 772 90 5,422 Total B2 3,014 1,808 17,607 Total Utility Vehicles (Uvs) 21,819 26,899 128,845 C :Multi Purpose Vehicles (MPVs)-Van type vehicles & Max Mass not excdding 3.5 tonnes (M1( c )) Van Type Force Motors Ltd (trip) 0 40 0 Maruti Suzuki India Ltd (Omini,Versa) 8,308 14,124 45,060 Tata Motors Ltd (ACE-Magic) 4,317 3,860 23,234 Total MPVs 12,625 18,024 68,294 Total Passenger Vehicles (PVs) 195,269 251,417 1,064,323 Commercial Vehicles M&HCVs A: Passenger Carriers, A1: Max mass not over 12 tn (b): No of seats over 13 Ashok Leyland Ltd 104 95 717 Swaraj Mazda Ltd 207 394 1,076 Tata Motors Ltd 538 426 2,615 VE CVs - Eicher 136 120 1,074 Total A1 985 1,035 5,482 A2: Max mass exceeding not over 16.2 tn (b): No of seats over 13 Ashok Leyland Ltd 1,616 2,520 6,770 JCBL Ltd 0 NA 0 Swaraj Mazda Ltd 0 10 13 Tata Motors Ltd 1,378 2,164 7,167 VE CVs - Eicher 11 2 102 Volvo Buses India Pvt Ltd 59 30 282 Total A2 3,064 4,726 14,334 A3: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(C)) Passenger Carrier (D) Volvo Buses India Pvt Ltd 7 16 31 Total M&HCVs(passenger carriers) 4,056 5,777 19,847 B: Goods Carriers B1: Max mass over 7.5 tn & less than 12 tn Ashok Leyland Ltd 137 319 700 Swaraj Mazda Ltd 333 392 1,655 Tata Motors Ltd 1,596 1,435 8,980 VE CVs - Eicher 1,415 1,844 7,098 Total 3,481 3,990 18,433 B2: Max mass not over 16.2 tn (a): Max mass 12-16.2 tn Ashok Leyland Ltd 1,277 1,428 5,859 Tata Motors Ltd 3,269 4,734 14,610 VE CVs - Eicher 189 341 827 Total B2 4,735 6,503 21,296 B3: Max mass over 16.2 tn (a): Rigid Vehicles (i) Max mass 16.2-25 tn Ashok Leyland Ltd 1,534 2,361 5,563 Asia Motor Works Ltd 206 510 839 Force Motors Ltd 0 0 1 Mahindra Navistar Automotives Ltd 0 87 0 Tata Motors Ltd 4,442 5,314 24,246 VE CVs - Eicher 52 69 139 VE CVs - Volvo 0 0 0 Total 6,234 8,341 30,788 (b) Max mass over 25 tn Ashok Leyland Ltd 341 730 367 Daimler India Commercial Vehicles Pvt Ltd* 0 25 0 Kamaz Vectra Motors Ltd 0 0 0 Mahindra Navistar Automotives Ltd 0 18 0 Mercedes-Benz India Pvt Ltd 7 0 21 Tata Motors Ltd 871 4,846 4,030

Source: SIAM

Domestic Sales For the month of Cumulative September April-September

09-10

2009

19,816 35,698 55,514

3,207 2,524 5,731

7,014 43,219 36,308 856 267,664 441,178 10,657 2,836 69,167 12,233 891,132

2010

Exports For the month of September

08-09

09-10

2009

1,608 5,520 7,128

15,856 7,500 23,356

12,113 37,402 49,515

103 0 103

1,514 83 5,431 504 24,998 52,508 0 889 9,858 0 95,785

926 6,465 5,441 649 28,565 68,921 1,170 256 6,258 2,891 121,542

7,125 436 22,920 4,602 128,658 299,829 0 2,609 56,868 0 523,047

6,529 38,179 34,729 2,800 152,664 369,466 3,280 2,820 48,902 12,022 671,391

0 9,681 2,212 4,296 24,863 29,100 5,118 61,430 0 24,281 0 1,020 162,001

0 3,101 412 750 4,281 2,752 510 7,356 0 3,420 0 0 22,582

3 1,633 323 512 6,164 3,170 1,000 10,531 0 8,783 3 1,401 33,523

0 12,910 1,517 3,711 18,875 15,255 2,901 44,225 0 18,498 0 0 117,892

986 5,472 6,104 2,704 0 1,191

143 1,053 319 695 0 254

255 724 1,083 574 0 253

3,672 4,998 0 2,701 27,828

684 905 6 221 4,280

886 1,080 141 1,073 0 2,046 0 0 628 5,854

Cumulative April-September

2010

08-09

09-10

1,336 0 1,336

2,419 0 2,419

5,771 0 5,771

0 0 28 18 24,484 11,418 0 0 447 0 36,395

96 880 23 4 18,108 11,242 0 0 651 0 31,004

231 0 231 22 131,744 63,140 0 4 1,877 0 197,249

810 3,474 158 15 114,953 69,008 0 0 3,556 0 191,974

40 8,198 2,057 4,234 23,432 19,370 3,869 60,320 4 43,771 3 1,603 166,901

0 150 12 0 8 1,517 300 43 0 76 0 0 2,106

0 123 2 1 9 1,582 0 71 0 225 0 0 2,013

0 474 31 0 10 8,227 750 193 0 543 0 0 10,228

0 697 77 1 32 10,436 1,500 400 0 1,055 0 0 14,198

519 5,768 1,020 2,524 0 882

1,105 5,334 5,185 2,460 2 1,281

0 38 0 0 0 0

0 28 0 0 0 0

0 190 2 0 0 0

0 68 3 3 0 0

845 1,082 61 254 5,131

3,759 4,468 113 1,197 20,250

3,648 4,967 316 1,860 26,158

0 0 0 0 38

0 0 0 0 28

0 0 0 0 192

0 0 0 0 74

195 313 52 98 21 257 23 104 55 1,118

319 253 16 272 18 366 38 152 107 1,541

699 1,412 238 399 102 1,345 124 580 308 5,207

1,090 1,172 145 1,098 137 2,036 265 977 602 7,522

0 0 0 0 0 0 0 0 0 0

0 5 0 0 0 0 0 0 0 5

0 0 0 0 0 0 0 0 0 0

0 5 0 0 0 0 0 0 0 5

0 293 0 0 293 1,142,622

59 51 78 0 188 129,684

45 86 76 10 217 169,082

208 211 263 0 682 690,434

249 275 249 21 794 922,281

0 0 0 0 0 38,642

0 0 0 0 0 34,386

0 0 0 0 0 210,088

0 0 0 0 0 212,022

0 24 1,758 3,767 1,342 0 0 46,644

36 3 221 743 129 1 1 8,965

65 8 282 969 330 88 0 9,674

320 8 863 3,449 765 108 12 41,881

190 21 1,525 4,632 1,345 307 0 46,077

0 0 0 0 0 0 0 54

0 0 0 0 0 0 0 66

0 0 0 2 0 0 0 264

0 0 0 0 0 0 0 569

0 0 0 11,597 18,738 83,870

9 11 36 1,644 2,662 14,461

8 53 55 2,251 3,007 16,790

59 50 68 9,089 11,023 67,695

49 222 256 11,074 18,864 84,562

0 0 0 15 0 69

0 0 0 23 0 89

0 0 0 58 0 324

0 0 0 140 0 709

0 649 419 34,123

0 114 101 4,759

0 104 57 6,612

0 1,439 595 25,013

0 640 380 32,800

0 0 0 21

0 1 0 118

0 0 38 207

0 1 0 721

2,510 6,208 13,643 57,552 141,422

217 175 2,158 7,524 21,985

258 396 2,108 9,535 26,325

2,096 1,750 11,862 42,755 110,450

3,758 3,007 13,567 54,152 138,714

0 21 0 42 111

35 71 0 225 314

30 90 0 365 689

47 212 0 981 1,690

3,981 4,730 1,428 451 10,590 152,012

583 595 1,572 683 3,433 25,418

683 671 251 824 2,429 28,754

2,818 2,315 6,536 5,790 17,459 127,909

3,805 4,561 1,397 5,895 15,658 154,372

4 0 27 45 76 187

0 0 12 10 22 336

4 5 53 123 185 874

Force Motors Ltd 0 4 30 75 109 1,799

79 76,903 24,815 101,797 1,396,431

0 8,297 4,116 12,413 167,515

19 13,822 3,955 17,796 215,632

0 44,433 22,445 66,878 885,221

30 75,117 24,718 99,865 1,176,518

0 148 15 163 38,992

0 174 0 174 34,896

0 637 46 683 211,645

0 929 24 953 214,774

928 1,851 2,919 1,621 7,319

141 195 537 126 999

133 298 336 222 989

610 879 2,571 1,042 5,102

915 1,797 3,410 1,538 7,660

42 0 5 0 47

24 0 19 5 48

118 0 41 2 161

125 4 308 117 554

10,963 14 46 9,490 102 128 20,743

1,251 0 0 1,126 3 34 2,414

2,023 NA 8 1,367 13 32 3,443

5,248 0 9 6,082 98 256 11,693

8,704 14 43 7,935 82 132 16,910

165 0 0 204 13 0 382

386 NA 0 597 0 0 983

701 0 0 1,502 38 0 2,241

1,855 0 0 2,196 11 0 4,062

91 28,153

4 3,417

16 4,448

27 16,822

86 24,656

0 429

0 1,031

0 2,402

0 4,616

1,691 2,034 8,631 9,892 22,248

135 512 1,587 1,565 3,799

317 431 1,604 2,074 4,426

531 1,562 8,310 6,781 17,184

1,463 1,822 10,547 9,867 23,699

46 9 154 62 271

34 30 245 51 360

181 68 639 285 1,173

146 115 1,258 298 1,817

9,999 23,115 1,759 34,873

869 2,824 101 3,794

1,827 3,484 369 5,680

4,781 13,368 365 18,514

8,060 17,882 1,376 27,318

248 456 84 788

332 556 44 932

1,008 2,092 499 3,599

1,690 2,633 290 4,613

13,533 2,583 0 314 28,336 410 1 45,177

1,523 192 0 0 4,562 27 0 6,304

2,929 511 0 11 5,062 113 0 8,626

5,743 956 0 0 22,873 156 0 29,728

12,835 2,515 0 47 27,379 406 12 43,194

0 0 0 0 243 15 0 258

0 0 0 0 94 0 0 94

214 0 0 0 1,302 53 0 1,569

0 0 0 0 1,126 4 0 1,130

5,199 78 0 18 101 22,069

398 0 0 0 16 998

1,112 19 0 4 0 2,814

609 0 0 0 83 3,679

4,840 49 0 4 83 12,204

0 0 0 0 0 18

0 0 0 0 0 7

5 0 0 0 0 104

0 0 0 0 0 202

1 - 15 November 2010

SIAM DATA

Category Segment/Subsegment Manufacturer.

Production

Domestic Sales Cumulative April-September

Exports

Cumulative April-September

2009

2010

08-09

09-10

2009

2010

08-09

09-10

2009

2010

08-09

09-10

39 62 5,720 14,061

107 284 4,809 35,597

227 437 28,129 73,306

40 107 1,559 7,863

77 76 4,102 12,728

132 398 4,901 34,629

224 387 17,791 60,985

0 0 18 276

0 0 7 101

12 0 121 1,690

0 0 202 1,332

0 0

59 59

43 43

357 357

512 0 512 720 61 0 13 8 802 1,314 25,868 31,645

761 1 762 343 252 0 0 0 595 1,357 76,683 96,530

1,914 0 1,914 2,833 418 0 48 79 3,378 5,292 135,719 163,872

269 636 905 173 81 750 1 8 1,013 1,918 17,374 20,791

540 838 1,378 593 48 1,132 14 6 1,793 3,171 26,005 30,453

767 2,092 2,859 783 262 2,447 32 34 3,558 6,417 76,744 93,566

2,004 4,158 6,162 2,514 362 5,384 46 71 8,377 14,539 126,541 151,197

87 0 87 21 0 0 0 0 21 108 1,443 1,872

10 0 10 5 0 0 0 0 5 74 1,467 2,498

103 0 103 59 0 10 0 0 69 215 6,677 9,079

30 0 30 25 0 0 0 0 25 412 8,174 12,790

800 0 0 339 248 1,387

2,646 1 1,674 0 2,418 6,739

4,245 4 0 1,791 1,907 7,947

579 0 237 0 246 1,062

739 0 0 302 217 1,258

2,603 4 1,489 0 2,867 6,963

4,018 4 0 1,695 2,735 8,452

22 0 40 0 3 65

26 0 0 0 11 37

58 0 111 0 20 189

72 0 0 0 152 224

76 25 0 150 249 1,030 241 1,771 3,158

447 103 1,773 0 1,050 7,881 1,220 12,474 19,213

577 151 0 1,440 1,756 7,617 1,670 13,211 21,158

50 9 86 0 94 913 136 1,288 2,350

39 26 0 94 285 725 180 1,349 2,607

320 98 1,704 0 891 7,158 993 11,164 18,127

365 134 0 1,374 1,582 7,212 1,458 12,125 20,577

30 0 22 0 1 217 12 282 347

0 0 0 0 0 224 28 252 289

166 0 84 0 21 802 236 1,309 1,498

62 0 7 0 21 1,072 223 1,385 1,609

466 9 8,950 921 15,114 25,460

1,190 126 33,752 5,172 62,271 102,511

3,068 237 51,933 5,506 79,428 140,172

307 22 6,665 1,100 10,811 18,905

468 11 9,255 1,128 11,891 22,753

1,101 117 30,571 5,163 55,615 92,567

2,854 209 47,028 5,013 66,701 121,805

0 0 406 10 745 1,161

4 0 779 6 1,921 2,710

4 0 1,759 28 2,973 4,764

8 0 4,359 12 10,765 15,144

128 0 304 521 953

786 500 0 1,672 2,958

598 0 1,086 4,189 5,873

210 111 0 489 810

99 0 255 431 785

800 512 0 500 1,812

595 0 1,046 3,751 5,392

0 0 0 24 24

0 0 0 60 60

9 0 0 36 45

0 0 0 290 290

0 12 0 424 171 2,080 498 3,185 29,598 32,756 64,401

0 72 1,567 0 922 10,829 2,082 15,472 120,941 140,154 236,684

24 125 0 1,767 588 10,949 2,942 16,395 162,440 183,598 347,470

0 15 264 0 197 2,240 317 3,033 22,748 25,098 45,889

0 10 0 403 118 1,723 603 2,857 26,395 29,002 59,455

0 56 1,164 0 841 11,255 1,557 14,873 109,252 127,379 220,945

0 112 0 1,760 407 9,351 2,240 13,870 141,067 161,644 312,841

0 0 83 0 103 193 56 435 1,620 1,967 3,839

0 0 0 0 70 343 71 484 3,254 3,543 6,041

0 2 401 0 287 1,038 354 2,082 6,891 8,389 17,468

0 4 64 0 200 1,638 403 2,309 17,743 19,352 32,142

1,500 1,746 3,246

0 11,870 11,870

6,839 9,590 16,429

0 2,513 2,513

1,066 1,729 2,795

0 11,901 11,901

5,978 11,745 17,723

0 0 0

0 27,708 62,940 15,000 17,856 39,382 162,886

3,203 101,546 353,760 14,314 56,434 139,603 668,860

0 156,167 446,444 73,818 101,831 205,081 983,341

402 17,299 52,552 3,006 10,217 26,955 110,431

0 26,468 64,191 15,503 17,862 39,675 163,699

2,909 99,519 348,596 15,664 56,367 136,764 659,819

27 149,865 440,794 64,793 101,746 199,478 956,703

260 636 843 182 20 980 2,921

0 1,232 743 176 1 1,682 3,834

624 2,372 4,518 549 41 5,071 13,175

0 7,280 6,707 854 90 8,619 23,550

0 NA 0 0 166,132

0 NA 763 763 681,493

0 NA 0 0 999,770

0 NA 0 0 112,944

0 NA 0 0 166,494

287 NA 290 577 672,297

0 NA 68 68 974,494

0 NA 0 0 2,921

0 NA 0 0 3,834

0 NA 133 133 13,308

0 NA 0 0 23,550

168,894 386,726 14,549 6,357 1,122 52,779 630,427

548,659 2,067,634 30 37,642 0 225,561 2,879,526

944,426 2,245,256 96,927 41,209 1,122 317,735 3,646,675

108,227 353,531 11 5,775 0 35,821 503,365

92,490 370,944 12,997 5,476 0 50,779 532,686

308,017 2,032,101 13 32,720 0 182,170 2,555,021

598,214 2,158,813 90,444 38,487 0 242,244 3,128,202

52,998 8,577 13 691 0 5,589 67,868

56,156 8,264 1,305 1,244 0 7,047 74,016

243,521 41,565 13 1,499 0 39,913 326,511

329,494 51,697 8,751 5,686 0 52,382 448,010

138,985 27,052 43,755 25,172 NA 4,665 22,040 261,669

534,958 126,356 240,732 91,014 NA 23,086 86,395 1,102,541

755,200 154,777 266,354 123,533 NA 18,728 118,614 1,437,206

74,675 20,395 28,953 20,619 NA 5,325 16,010 165,977

138,455 26,141 41,027 18,653 NA 4,672 12,919 241,867

435,884 122,682 212,621 80,440 NA 22,996 65,897 940,520

600,557 146,385 242,320 86,826 NA 18,467 67,186 1,161,741

13,233 852 3,889 2,815 NA 156 3,139 24,084

27,414 592 2,160 8,567 NA 1 10,636 49,370

95,042 3,983 29,212 21,748 NA 583 19,482 170,050

183,598 5,943 25,529 41,242 NA 449 47,552 304,313

0 0 25,224 25,224 5,109,105

0 0 4,551 4,551 673,893

0 4 3,795 3,799 778,352

6 8 25,455 25,469 3,521,010

0 23 23,964 23,987 4,313,930

0 0 138 138 92,090

0 0 102 102 123,488

0 0 923 923 497,484

0 0 1,349 1,349 753,672

343,435 343,435

51,303 51,303

60,316 60,316

274,416 274,416

337,882 337,882

564 564

0 0

1,970 1,970

3,951 3,951

NA 0 0 6,452,310

NA 12 12 838,152

NA 0 0 1,005,162

2,482 229 2,711 4,470,434

NA 0 0 5,626,306

NA 0 0 95,575

NA 0 0 127,322

50 0 50 512,812

NA 0 0 781,173

4,389 209,893 0 19,604 73,957 1,984 18,692 328,519

442 16,007 9 2,948 12,101 196 1,106 32,809

778 19,715 0 4,066 13,389 376 2,100 40,424

1,599 80,289 48 13,776 62,574 1,298 5,204 164,788

4,321 97,324 5 18,797 67,096 1,934 12,333 201,810

11 14,190 0 45 180 0 94 14,520

18 18,390 0 318 1,608 0 1,122 21,456

11 63,538 0 56 1,902 0 300 65,807

79 117,965 0 998 7,244 0 5,422 131,708

84 3,686 1,308 5,078 333,597

38 42 221 301 33,110

0 886 268 1,154 41,578

158 153 1,286 1,597 166,385

26 3,534 1,245 4,805 206,615

56 0 0 56 14,576

0 0 0 0 21,456

266 0 0 266 66,073

84 60 0 144 131,852

4,226 1,790 6,365 27,614 2,041 42,036

691 924 1,272 4,587 222 7,696

763 149 1,053 4,677 387 7,029

3,121 4,661 6,748 23,525 1,454 39,509

4,260 1,531 6,334 27,101 1,963 41,189

10 0 5 16 0 31

0 0 18 66 0 84

16 0 72 167 0 255

2 174 152 489 0 817

15 0 1,068 1,083 43,119 376,716 8,572,927

103 0 222 325 8,021 41,131 1,092,687

1 0 229 230 7,259 48,837 1,329,086

608 74 1,235 1,917 41,426 207,811 5,784,411

104 0 1,187 1,291 42,480 249,095 7,364,760

9 0 0 9 40 14,616 153,022

0 0 0 0 84 21,540 189,799

9 0 0 9 264 66,337 808,262

0 0 0 0 817 132,669 1,160,758

B4: Engine capacity over 250 cc Honda Motorcycle & Scooter India (Pvt) Ltd 0 0 0 India Yamaha Motor Pvt Ltd 0 0 0 Royal Enfield (Unit of Eicher Ltd) 4,810 3,865 26,880 Total 4,810 3,865 26,880 Total Motor Cycles/Step-Throughs 745,062 895,961 4,008,947 C: Mopeds: Engine capacity <75 cc, wheels over 12” TVS Motor Company Ltd 51,164 60,241 275,915 Total 51,164 60,241 275,915 D: Electric two Wheelers Electrotherm (india)Ltd NA NA 2,549 TVS Motor Company Ltd 0 0 18 Total 0 0 2,567 Total Two Wheelers 908,152 1,122,334 4,968,922 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 459 826 1,600 Bajaj Auto Ltd 30,672 38,680 142,929 Force Motors Ltd 15 0 54 Mahindra & Mahindra Ltd 3,019 4,372 13,600 Piaggio Vehicles Pvt.Ltd 12,290 15,048 63,858 Scooters india Ltd 191 297 1,279 TVS Motor Company Ltd 1,142 3,780 5,395 Total 47,788 63,003 228,715 A2: No.of seats including Driver exceeding 4 but not exceeding 7 & Max.Mass exceeding 1.5 tonnes Force Motors Ltd 58 0 387 Mahindra & Mahindra Ltd 0 938 20 Scooters india Ltd 189 237 1,295 Total 247 1,175 1,702 Total Passenger Carrier 48,035 64,178 230,417 B: Goods Carriers B1: Max.mass not exceeding 1 tonnes Atul Auto Limited 695 707 3,100 Bajaj Auto Ltd 927 122 4,611 Mahindra & Mahindra Ltd 672 769 6,473 Piaggio Vehicles Pvt.Ltd 4,600 4,928 23,361 Scooters india Ltd 214 316 1,454 Total 7,108 6,842 38,999 B2: Others Force Motors Ltd 97 0 605 Mahindra & Mahindra Ltd 0 0 25 Scooters india Ltd 202 107 1,237 Total 299 107 1,867 Total Goods Carrier 7,407 6,949 40,866 Total Three Wheelers 55,442 71,127 271,283 Grand Total of all Categories 1,205,938 1,509,279 6,541,212

For the month of September

For the month of September VE CVs - Eicher 49 VE CVs - Volvo 70 Total 1,338 Total B3 7,572 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 Total 0 (b) Max. mass exceeding 26.4 tonnes but not exceeding 35.2 tonnes Ashok Leyland Ltd 243 Tata Motors Ltd 0 Total 243 Ashok Leyland Ltd 156 Asia Motor Works Ltd 94 Tata Motors Ltd 0 VE CVs - Eicher 0 VE CVs - Volvo 0 Total 250 Total B4 493 Total M&HCVs (Goods Carriers) 16,281 Total M&HCVs 20,337 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 569 Hindustan Motors Ltd 0 Mahindra & Mahindra Ltd 191 Mahindra Navistar Automotives Ltd 0 Tata Motors Ltd 304 Total A1 1,064 A2: Max mass 5-7.5 tn (b): No of seats up to & over 13 Ashok Leyland Ltd 69 Force Motors Ltd 7 Mahindra & Mahindra Ltd 20 Mahindra Navistar Automotives Ltd 0 Swaraj Mazda Ltd 102 Tata Motors Ltd 1,123 VE CVs - Eicher 106 Total 1,427 Total LCVs (Passenger Carriers) 2,491 B Goods Carrier B1: Max mass not over 3.5 tn Force Motors Ltd 334 Hindustan Motors Ltd 37 Mahindra & Mahindra Ltd 6,367 Piaggio Vehicles Pvt.Ltd 1,110 Tata Motors Ltd 12,643 Total 20,491 B2:Max mass 3.5-5 tn Force Motors Ltd 201 Mahindra & Mahindra Ltd 106 Mahindra Navistar Automotives Ltd 0 Tata Motors Ltd 539 Total 846 B3: Max mass 5-7.5 tn Ashok Leyland Ltd 0 Force Motors Ltd 21 Mahindra & Mahindra Ltd 349 Mahindra Navistar Automotives Ltd 0 Swaraj Mazda Ltd 122 Tata Motors Ltd 2,000 VE CVs - Eicher 418 Total 2,910 Total LCVs (Goods Carriers) 24,247 Total LCVs 26,738 Total Commercial Vehicles 47,075 Two Wheelers A: Scooter/Scooterette, Wheelsize not over 12’’ A1: Engine Capacity less than 75cc Mahindra Two Wheelers Ltd 0 TVS Motor Company Ltd 2,489 Total 2,489 A2: Engine capacity 75-125 cc Bajaj Auto Ltd 522 Hero Honda Motors Ltd 17,376 Honda Motorcycle & Scooter India (Pvt) Ltd 51,925 Mahindra Two Wheelers Ltd 2,971 Suzuki Motorcycle India Pvt Ltd 10,238 TVS Motor Company Ltd 26,405 Total 109,437 A3: Engine capacity 125 -250 cc Honda Motorcycle & Scooter India (Pvt) Ltd 0 LML Limited NA Mahindra Two Wheelers Ltd 0 Total 0 Total Scooter/Scooterettee 111,926 B: Motorcycle/Step-Through: Wheel size more than 12” B2: Engine capacity 75-125 cc Bajaj Auto Ltd 162,518 Hero Honda Motors Ltd 353,472 Honda Motorcycle & Scooter India (Pvt) Ltd 0 India Yamaha Motor Pvt Ltd 7,103 Mahindra Two Wheelers Ltd 0 TVS Motor Company Ltd 35,389 Total 558,482 B3: Engine capacity 125-250 cc Bajaj Auto Ltd 85,406 Hero Honda Motors Ltd 20,612 Honda Motorcycle & Scooter India (Pvt) Ltd 32,257 India Yamaha Motor Pvt Ltd 19,960 LML Limited NA Suzuki Motorcycle & Scooter India (Pvt) Ltd 4,631 TVS Motor Company Ltd 18,904 Total 181,770

* Exports of Ford indicate CKDs

Auto Monitor

For the month of September

Cumulative April-September

Auto Monitor

1 - 15 November 2010

EUROPEAN SALES

New Registrations in Enlarged Europe*-By Manufacturer GROUP

BRAND

MV-Motor Vehicles (LV+CV) Aston Martin Aston Martin BMW BMW Mini Other Total China Brilliance Changan Great Wall Landwind Lifan Other Total Chrysler Chrysler Dodge Jeep Total DAF DAF Mercedes Daimler Smart Other Total Fiat Alfa Romeo Fiat Iveco Lancia Other Total Ford Ford Mercury Volvo Other Total GM Chevrolet Opel SAAB Other Total Jaguar Land Rover Jaguar Land Rover Total Japan Daihatsu Honda Mazda Mitsubishi Nissan Subaru Suzuki Other Total Korea Daewoo Hyundai KIA Other Total MAN MAN Other Total MG Rover Rover Porsche Porsche PSA Citroen Peugeot Total Renault Dacia Renault Other Total Scania Scania Toyota Toyota Lexus Total Volkswagen AG Audi Seat Skoda Volkswagen Other Total Volvo Trucks Volvo Other Total PC- Passenger Cars Aston Martin Aston Martin BMW BMW Mini Other Total China Brilliance Changan Great Wall Landwind Lifan Other Total Chrysler Chrysler Dodge Jeep Total DAF DAF Mercedes Daimler Smart Other Total Fiat Alfa Romeo Fiat Iveco Lancia Other Total Ford Ford Mercury Volvo Other Total

2010 AUGUST

2009 AUGUST

% CHANGE

YEAR TILL DATE 2010

133 30670 5977 21 36668 0 0 83 0 0 6 89 782 637 656 2075 2122 42707 4170 105 46982 5921 44693 5754 3759 187 60314 60781 0 9355 0 70136 11452 53667 1110 96 66325 1064 2632 3696 1103 8952 10828 8908 23422 2786 11718 801 68518

111 33523 7167 11 40701 1 2 58 0 1 7 69 808 1237 1142 3187 1566 41535 4941 51 46527 5814 58486 5135 5661 214 75310 73914 0 8453 2 82369 11509 61455 1126 138 74228 859 2489 3348 2287 13661 13036 6852 27011 2253 17491 718 83309

19.82 -8.51 -16.60 90.91 -9.91 -100.00 -100.00 43.10

10.67 -100.00 -14.85 -0.50 -12.67 -1.42 -30.43 -10.65 23.86 5.75 10.39 -51.77 -34.47 -16.94 30.01 -13.29 23.66 -33.01 11.56 -17.75

1573 393928 85560 353 479841 1 11 967 1 12 36 1028 12408 8694 9378 30480 20180 503705 56638 942 561285 68665 716425 55811 72604 3765 917270 886177 5 149469 7 1035658 117673 709661 11247 1400 839981 17314 52725 70039 13851 125840 128138 80109 297140 28714 130946 9119 813857

22987 15137 353 38477 3103 17 3120

24031 16786 668 41485 2944 23 2967

-4.34 -9.82 -47.16 -7.25 5.40 -26.09 5.16

241194 175192 4764 421150 23952 246 24198

1881 53404 58324 111728 19823 69053 30 88906 1722 38306 916 39222 37063 18339 30257 100484 81 186224 1645 2803 832786

1209 58185 64506 122691 19966 70120 1 90087 1280 47149 1128 48277 36827 20035 31872 115169 74 203977 1176 3491 927365

55.58 -8.22 -9.58 -8.94 -0.72 -1.52 2900.00 -1.31 34.53 -18.76 -18.79 -18.76 0.64 -8.47 -5.07 -12.75 9.46 -8.70 39.88 -19.71 -10.20

25176 695276 798790 1494066 192636 955138 91 1147865 15783 426156 12723 438879 419542 211027 309191 1158643 1362 2099765 17360 28912 10484346

133 30488 5977 21 36486 0 0 23 0 0 6 29 727 599 584 1910

111 33457 7167 11 40635 1 2 5 0 1 7 16 739 1175 1082 2996

19.82 -8.87 -16.60 90.91 -10.21 -100.00 -100.00 360.00 -100.00 -14.29 81.25 -1.62 -49.02 -46.03 -36.25

1573 393319 85546 353 479218 1 11 100 1 12 36 161 12004 8145 8622 28771

29359 4170

30140 4941 0 35081 5807 49919 58 5659 214 61657 64834 0 8433 2 73269

-2.59 -15.60

379935 56638

-4.42 1.84 -25.76 20.69 -33.61 -12.62 -23.79 -20.35

436573 68559 590817 734 72580 3765 736455 777695 5 149207 7 926914

33529 5914 37058 70 3757 187 46986 51642 0 9333 0 60975

-100.00 -14.29 28.99 -3.22 -48.50 -42.56 -34.89 35.50 2.82 -15.60 105.88 0.98 1.84 -23.58 12.05 -33.60 -12.62 -19.91 -17.77

10.67 -100.00 -16.78

Source: Association Auxiliaire de lâ&#x20AC;&#x2122;Automobile

GROUP GM

Jaguar Land Rover

Japan

Korea

MAN MG Rover Porsche PSA

Renault

Scania Toyota

Volkswagen AG

Other Total

BRAND 2010 AUGUST Chevrolet 11428 Opel 49437 SAAB 1110 Other 82 Total 62057 Jaguar 1064 Land Rover 2298 Total 3362 Daihatsu 1103 Honda 8951 Mazda 10662 Mitsubishi 7409 Nissan 20767 Subaru 2779 Suzuki 11685 Other 2 Total 63358 Daewoo 22681 Hyundai KIA 15058 Other 310 Total 38049 MAN Rover Porsche 1825 Citroen 43422 Peugeot 49372 Total 92794 Dacia 18934 Renault 54278 Total 73212 Scania Toyota 35558 Lexus 916 Total 36474 Audi 36772 Seat 18206 Skoda 29978 Volkswagen 89490 Other 81 Total 174527 1097 726812

LCV-Light Commercial Vehicles up to 3.5t ** BMW BMW 182 Mini Total China Great Wall 60 Chrysler Chrysler 55 Dodge 38 JEEP 72 Total 165 DAF DAF Mercedes 7651 Daimler Fiat Alfa Romeo 7 Fiat 7465 Iveco 2718 Lancia 2 Total 10192 Ford Ford 8908 Volvo 22 Other Total 8930 GM Chevrolet 22 Opel 4222 SAAB 0 Other 14 Total 4258 Jaguar Land Rover Jaguar Land Rover 334 Japan Daihatsu 0 Honda 1 Mazda 163 Mitsubishi 1344 Nissan 2592 Subaru 7 Suzuki 33 Other 673 Total 4813 Korea Daewoo Hyundai 306 KIA 79 Other 43 Total 428 Porsche Porsche PSA Citroen 9975 Peugeot 8934 Total 18909 Renault Dacia 889 Renault 13299 Total 14188 Toyota Toyota 2732 Volkswagen AG Audi 291 Seat 133 Skoda 279 Volkswagen 10718 Total 11421 Other 680 Total 84999 LBC- Light Buses & Coaches upto 3.5 tn Daimler Mercedes Fiat Fiat Iveco Total Ford Ford GM Opel Chevrolet Total Japan Nissan Toyota Total Korea Hyundai

2009 AUGUST 11490 57501 1125 135 70251 859 2195 3054 2287 13641 12756 5706 24578 2219 17391 24 78602

% CHANGE -0.54 -14.02 -1.33 -39.26 -11.66 23.86 4.69 10.09 -51.77 -34.38 -16.42 29.85 -15.51 25.24 -32.81 -91.67 -19.39

YEAR TILL DATE 2010 117440 660569 11242 1304 790555 17314 47997 65311 13849 125800 126477 63216 267544 28636 130358 27 755907

23692 16682 623 40997

-4.27 -9.74 -50.24 -7.19

237948 174374 4423 416745

1198 48543 55826 104369 18837 57767 76604

52.34 -10.55 -11.56 -11.09 0.51 -6.04 -4.43

25003 579484 689807 1269291 181356 783705 965061

44808 1127 45935 36742 19936 31434 105043 74 193229 1664 829675

-20.64 -18.72 -20.60 0.08 -8.68 -4.63 -14.81 9.46 -9.68 -34.07 -12.40

401301 12719 414020 418083 209762 305927 1048203 1362 1983337 12586 9307557

175.76

623

53 69 55 60 184

13.21 -20.29 -30.91 20.00 -10.33

867 403 541 756 1700

6582 7 8407 2422 2 10838 8882 20 0 8902 19 3938 1 3 3961

16.24 0.00 -11.20 12.22 0.00 -5.96 0.29 10.00

80503 106 123165 31186 24 154481 105610 262

0.31 15.79 7.21 -100.00 366.67 7.50

105872 213 49024 5 89 49331

13.61

294 0 20 280 1006 2367 34 100 601 4408

-95.00 -41.79 33.60 9.51 -79.41 -67.00 11.98 9.19

4728 2 40 1653 15140 28998 78 588 7920 54419

337 104 45 486

-9.20 -24.04 -4.44 -11.93

3242 818 341 4401

9633 8652 18285 1129 10978 12107 2333 85 99 438 9826 10448 596 79555

3.55 3.26 3.41 -21.26 21.14 17.19 17.10 242.35 34.34 -36.30 9.08 9.31 14.09 6.84

115674 108694 224368 11280 156380 167660 24617 1458 1260 3258 108253 114229 6835 994817

102 13 18 31 42 6

239 27 11 38 34 15

-57.32 -51.85 63.64 -18.42 23.53 -60.00

1421 161 57 218 293 38

-66.67

-100.00

1 - 15 November 2010

GROUP

PSA

Renault Volkswagen AG

Other

EUROPEAN SALES

BRAND 2010 AUGUST Kia Other Total Citroen 1 0 Peugeot Total 1 Renault 65 Audi Seat Skoda Volkswagen 110 Total Dodge 75 Other Total 433

Total Light Commercial Vehicles up to 3.5t (LCV+LBC) BMW BMW 182 Mini Total China Great Wall 60 Chrysler 55 Chrysler Dodge 38 JEEP 72 Total 165 DAF DAF Daimler Mercedes 7753 Fiat Alfa Romeo 7 Fiat 7478 Iveco 2736 Lancia 2 Total 10223 Ford Ford 8950 Volvo 22 Other Total 8972 GM Chevrolet 22 Opel 4228 SAAB 0 Other 14 Total 4264 Jaguar Land Rover Jaguar Land Rover 334 Japan Daihatsu 0 Honda 1 Mazda 163 Mitsubishi 1344 Nissan 2593 Subaru 7 Suzuki 33 Other 673 Total 4814 Korea Daewoo 306 Hyundai KIA 79 Other 43 Total 428 Porsche Porsche PSA Citroen 9976 Peugeot 8934 Total 18910 Renault Dacia 889 Renault 13364 Total 14253 Toyota Toyota 2732 Audi 291 Volkswagen AG Seat 133 Skoda 279 Volkswagen 10828 Total 11531 Other 755 Total 85432 CV-Commercial Vehicles (trucks) over 3.5t ** China Other Chrysler Other 0 DAF DAF 2101 Daimler Mercedes 4887 Fiat Fiat 145 Iveco 2321 Total 2466 Ford Ford 47 GM Chevrolet 1 Opel 1 Other 0 Total 2 Japan Mitsubishi 155 Nissan 62 Other 124 Total 344 Korea Daewoo MAN MAN 2853 PSA Citroen 6 Peugeot 12 Total 18 Renault Renault 1370 30 Other Total 1400 Scania Scania 1593 Toyota Toyota 16 Volkswagen AG Volkswagen 132 Volvo Trucks Volvo 1542 Other 460 Total 17861 BC-Buses & Coaches over 3.5t DAF DAF Daimler Mercedes Others Total Fiat Fiat Iveco Total Ford Ford

Auto Monitor

21 708 105 813 12 627 639 142

2009 AUGUST

% CHANGE

YEAR TILL DATE 2010

GROUP GM Japan

-100.00

148

-56.08

20 18 38 580 MAN

89.66

791

67 609

11.94 -28.90

1103 4506

175.76

623

53 69 55 60 184

13.21 -20.29 -30.91 20.00 -10.33

867 404 541 756 1701

6821 7 8434 2433 2 10876 8916 20 0 8936 19 3953 1 3 3976

13.66 0.00 -11.34 12.45 0.00 -6.00 0.38 10.00

81924 106 123326 31243 24 154699 105903 262

0.40 15.79 6.96 -100.00 366.67 7.24

106165 213 49062 5 89 49369

13.61

294 0 20 280 1006 2370 34 100 601 4411

-95.00 -41.79 33.60 9.41 -79.41 -67.00 11.98 9.14

4728 2 40 1653 15140 29007 78 588 7920 54428

339 104 45 488

-9.73 -24.04 -4.44 -12.30

3244 818 341 4403

9635 8653 18288 1129 11126 12255 2335 85 99 438 9884 10506 663 80164

3.54 3.25 3.40 -21.26 20.12 16.30 17.00 242.35 34.34 -36.30 9.55 9.76 13.88 6.57

115694 108712 224406 11280 156960 168240 24629 1459 1265 3264 109032 115020 7938 999323

-100.00 35.99 34.96 29.46 17.28 17.93 56.67

10.71 0.00 40.91 18.62

8 19960 36672 2123 20312 22435 481 19 8 7 34 1753 584 1147 3492

2523 6 21 27 1162 1 1163 1155 7 124 1097 674 14354

13.08 0.00 -42.86 -33.33 17.90 2900.00 20.38 37.92 128.57 6.45 40.57 -31.75 24.43

22208 82 231 313 13720 91 13811 14497 230 1211 15637 4708 155699

20 953 51 1004 21 665 686 134

5.00 -25.71 105.88 -19.02 -42.86 -5.71 -6.85 5.97

219 5174 942 6116 159 3522 3681 2098

0 7 1545 3621 112 1979 2091 30 0 0 0 0 140 62 88 290

PSA

Renault Scania Volkswagen Volvo Trucks Others Total

BRAND 2010 AUGUST Chevrolet Opel 2 Nissan 2 Mitsubishi Toyota Others Total MAN 241 17 Others Total 258 Citroen 0 6 Peugeot Total 6 Renault 41 Scania 129 Volkswagen 34 Volvo 103 491 2681

Total Commercial Vehicles (Trucks) & (Buses) over 3.5t Other China Chrysler Other 0 DAF DAF 2122 Daimler Mercedes 5595 Others 105 Total 5700 Fiat Fiat 157 Iveco 2948 Total 3105 Ford Ford 189 GM Chevrolet 2 Opel 2 Others 0 Total 4 Japan Mitsubishi 155 62 Nissan Others 126 Total 346 Korea Daewoo Hyundai Total MAN MAN 3094 17 Others Total 3111 PSA Citroen 6 18 Peugeot Total 24 Renault Renault 1411 Others 30 Total 1441 Scania Scania 1722 Toyota Toyota 16 Volkswagen AG Volkswagen 166 Volvo Trucks Volvo 1645 Others 951 Total 20542

2009 AUGUST

% CHANGE

YEAR TILL DATE 2010

100.00

23 30

-100.00

414 23 437 1 6 7 65 125 118 79 490 3172

-41.79 -26.09 -40.96 -100.00 0.00 -14.29 -36.92 3.20 -71.19 30.38 0.20 -15.48

1659 246 1905 16 40 56 753 1286 197 1723 3680 21767

-100.00 35.59 22.32 105.88 23.24 18.05 11.50 11.81 15.24

300.00 10.71 -1.59 35.48 16.89

8 20179 41846 942 42788 2282 23834 26116 2579 20 30 7 57 1753 589 1172 3522

2937 23 2960 7 27 34 1227 1 1228 1280 7 242 1176 1164 17526

5.35 -26.09 5.10 -14.29 -33.33 -29.41 15.00 2900.00 17.35 34.53 128.57 -31.40 39.88 -18.30 17.21

23867 246 24113 98 271 369 14473 91 14564 15783 230 1408 17360 8388 177466

0 7 1565 4574 51 4625 133 2644 2777 164 0 1 0 1 140 63 93 296

100.00

HCV-Heavy Commercial Vehicles (trucks) over 16t ** Other China DAF DAF 1776 Daimler Mercedes 2922 Fiat Iveco 1020 Ford Ford GM Chevrolet Japan Other 11 MAN MAN 2105 Renault Renault 1026 Other 3 Total 1029 Scania Scania 1587 Volvo Trucks Volvo 1428 Others 200 Total 12078

0 1244 1906 845

42.77 53.31 20.71

5 16982 21136 9295

5 1714 793 1 794 1149 999 270 8926

120.00 22.81 29.38 200.00 29.60 38.12 42.94 -25.93 35.31

86 16127 10156 22 10178 14428 14490 2030 104753

HBC-Heavy Buses & Coaches over 16t DAF DAF Daimler Mercedes Other Total Fiat Iveco MAN MAN Others Total Renault Renault Scania Scania Volvo Trucks Volvo Others Total

4 628 51 679 377 401 22 423 21 123 79 243 1949

225.00 -27.23 105.88 -17.23 18.57 -43.89 -22.73 -42.79 -23.81 4.07 30.38 36.21 -5.49

100 3254 942 4196 2276 1472 246 1718 486 1279 1721 2331 14107

43.35 33.35 105.88 34.78 20.05

17082 24390 942 25332 11571

120.00

10.17 -22.73 9.83 28.01 200.00 28.22 34.83 42.02 3.51 28.00

17599 246 17845 10642 22 10664 15707 16211 4361 118860

13 457 105 562 447 225 17 242 16 128 103 331 1842

Total Heavy Commercial Vehicles (Trucks & Buses) over 16t China Other 0 DAF DAF 1789 1248 Daimler Mercedes 3379 2534 Other 105 51 Total 3484 2585 Fiat Iveco 1467 1222 Chevrolet GM Japan Others 11 5 Total MAN MAN 2330 2115 Others 17 22 Total 2347 2137 Renault Renault 1042 814 Other 3 1 Total 1045 815 Scania Scania 1715 1272 Volvo Trucks Volvo 1531 1078 Others 531 513 Total 13920 10875

*EU 15 + EEFTA (Iceland, Norway & Switzerland) + Western Europe (10 new members) â&#x20AC;&#x2DC;(*) EU27 including Bulgaria and Romania; data for Malta and Cyprus not available

Auto Monitor

THE OTHER SIDE

Getting Personal With Sanjay Soni, Managing Director, Logix Microsystems If not in the auto industry, where would you be? In the fi nancial services industry What car do you drive? What do you dream of driving? I drive a Toyota Camry; dream of driving an Aston Martin Rapide Your most recent indulgence… A Swiss watch with a tourbillion – wanted to have one for a long, long time What are you currently reading? Prince of Dharma – by Ashok Banker What is Mr Soni doing when not talking auto? Either in the wild capturing some unforgettable images on his camera or playing golf or playing games on his PS3 Outdoor activity you would miss office for… A day in the jungle with my camera Where did you go for your last holiday? Skiing holiday in Chamonix, France You get angry when… When I encounter someone practising double standards; it makes my blood boil What is the one thing you would like to change about yourself? I am too blunt and straightforward with people. I’d like to be more diplomatic

Illustration: Sachin Pandit

Best thing to have happened to you… Meeting then Prime Minister, late Rajiv Gandhi and receiving a commendation from him for writing books on Computer Science when I was 21-years-old

1 - 15 November 2010

In Person Managing Director of Logix Microsystems, Sanjay Soni (40) loves his daily game of golf and is a striving photographer. His favourite author is Ayn Rand (Fountainhead). He listens to a lot of music from various genres, including pop, rock and Bollywood, while his favourite music band is Moody Blues. He also loves to dance on popular music. Sanjay is also a certified scuba diver. For someone, whose motto in life is to ‘live each day as it were your last’, Sanjay is a gadget freak and spends lots of time over weekends fiddling with his iPhone or playing the Play Station3 with his building kids. He got the MacBook Air before it was launched in India and is pleased with it! His bookshelf ranges from classics by Edgar Allen Poe, Renaissance fiction by Umberto Eco, contemporary fiction by Robert Ludlum, spirituality by Khalil Gibran, historical books – The Mitrokhevin Archives, thrillers by Martin Reilly etc. Sanjay is an aficionado of Vodka with Sprite and a dash of lime. He and his wife love to travel. He always remembers his trip to Alaska a year ago, but his most memorable journey was the drive along Highway Pacific 1 from Monterrey to Big Sur. It is one of the most scenic drives in the world with towering mountains on one side and the Pacific Ocean on the other. The winding road is so scenic that there are caution signs warning drivers to keep their attention on the road!

An experience I won’t forget… This happened in 1986-87. It was during the peak of the Punjab problem. I was studying in Bombay at that time. We had heard some reports that some of the Punjab terrorists had sneaked into Bombay because of the cleanup operations being done by KPS Gill in Punjab. I did not bother much about the same as it did not really concern us. One afternoon, I was in a taxi going to the airport to take a fl ight to Bangalore. The taxi had stopped at a signal and we were waiting for the signal to turn green to take a right turn on LBS Marg, towards Powai. Heard something that sounded like gunshots (having been in NCC for four years I was aware that these were not crackers). Looked out of the window of the taxi and saw two terrorists on a motorcycle fi ring from their AK-47 rifles at some people who had stopped to refuel their car at a petrol bunk on the side of the road. There was utter panic as hell broke loose and people started fleeing helter-skelter. I was frozen for a moment but quickly ducked down below the seat so as to avoid getting shot by a wayward bullet or a ricochet. The terrorists left the scene in a few minutes after shooting, whoever they were after. The taxi guy quickly got me out of there and to the airport. However, I can never forget that scene ever. It was a really close call.

Regn. No. MH/MR/WEST/20/2009-2011. RNI No. MAHENG/2000/11414 WPP Licence No: MR/Tech/WPP-269/WEST/09-11 Licenced to post without pre-payment at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001. Date Of Mailing: 1st & 2nd Fortnightly Issue