Auto Monitor - 1-15 October 2011 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 1-15 October 2011

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INTERVIEW “BETTER EFFICIENCY STANDARDS ARE DRIVERS OF COMPETENT TECHNOLOGY” Anup Bandivadekar, Programme Lead, Passenger Vehicles, ICCT

Skoda extends Fabia range Our Bureau Mumbai

kodaAuto India, a fully owned subsidiary of Skoda Auto recently introduced the Fabia Active (`4.39 lakh for petrol and `5.46 lakh for diesel) and the Fabia Ambition (`4.85 lakh for petrol and `5.94 lakh for diesel) variants. The packaged version of the Active plus is priced at `4.58 lakh for the petrol variant and `5.66 lakh

Skoda Fabia

for the diesel version while the Ambition plus is priced at `4.99 lakh and `6.07 lakh for petrol and diesel version respectively. The packaged versions give customers the option to upgrade with factory fitted packages, which include a host of convenient features.

DATA MONITOR Domestic Top 5 PV-makers Aug-10

MSIL HMIL

“Self-Sust aining” • Economic returns for Industry • No/limited subsidies required henceforth

“Economically Viable”

3 Local Manufacturing Capability

• Viable solution for consumer at an acceptable price point

“Tipping Point”

2 Technology and Application Development/ Acquisition 1 Creating Consumer Acceptability

“Infeasible” 2011

4 Infrastructure

2016

Time

2017-18

` 50

STUDY NATIONAL HYBRID/ MOBILITY MISSION

2020

Note: Japan’s investment is from 1998–2014 Source: ICCT, Booz & Company analysis

Pg 14

Rane bags order from VW for CNG engine valves

NEWS IN BRIEF

Sector

Pg 8

56 Pages

Potential Roadmap for Hybridization/ Electrification

xE V P enetration

Vol. 11 No. 18

Aug-11

Change

92,674

77,086

-16.82%

28,601

26,677

-6.73%

TML

30,192

21,752

-27.95%

M&M ^

13,796

18,088

31.11%

Toyota

6,361

11,679

83.60%

Domestic Top 5 2W-makers Sector

Aug-10

Aug-11

Change

HML

413,162

491,120

18.87%

BAL

209,567

226,559

8.11%

TVS

148,081

163,705

10.55%

HMSI

125,559

152,338

21.33%

IYM

22,672

29,934

32.03%

Domestic Top 5 CV-makers Sector

Aug-10

Aug-11

Change

TML

30,605

38,122

24.56%

M&M

7,533

10,139

34.59%

ALL

6,705

6,168

-8.01%

VECV Eicher

2,582

3,407

31.95%

FML

1,736

2,025

16.65%

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

T Murrali Chennai

he Chennai headquartered Rane Engine Valves (REVL) has bagged an order from Volkswagen to supply both inlet and exhaust valves for the 1.4litre CNG engine. This is for the ﬁ rst time REVL is receiving orders for both the valves as ﬁ rst source. The company has been catering to the requirements of the German OEM since 2004, beginning with one part number for 1.4-litre engine. Gradually, it has expanded its product portfolio and now supplies a wide variety of engine inlet valves to 1.6, 1.9 and 2-litre engines. In addition to Volkswagen, the company is also the preferred supplier to German engine major, Deutz. Speaking to Auto Monitor, President, REVL, G Ramkumar said, “It’s a huge expression of confidence,” by Volkswagen. The company is now gearing up to commence its supplies to the OEM’s manufacturing plants in Salzgitter and Chemnitz in

Germany. In addition to the current Volkswagen order, REVL also foresees the demand increasing from certain segments of OEMs, due to segmentation as well as market expansion. In order to cater to the demand, it is looking at enhancing its capacity and towards this, it has earmarked `43 crore for this year. REVL has a wide range of customers—not only from different segments but from also having a band of varied consumption pattern. For instance, one of its customers—Birla Yamaha takes about 2,000 valves per month, while Hyundai Motor India consumes 21,000 valves per day. In a bid to optimise its plans, the company that holds 41 percent market share in OEM business, has enunciated a concept ‘key customers’ encompassing six of them—Hero MotoCorp, Hyundai Motor India, Maruti, Mahindra in the domestic market and Deutz and Volkswagen in exports. Secondly, it also created ‘strategic customers’ in which, REVL though currently has marginal presence,

G Ramkumar, President, REVL

it displays immense potential for growth. Some of its strategic customers include HMSI, TKM and Mahindra Navistar who are gearing up to aggressively address their respective markets. “The strategy is to prioritise the expansion plan based on customer segmentation since funding the growth is becoming an issue due to hardening of interest rates,” he said. Close to 90 percent of the product manufactured by the company is engine valves, eight percent guides and the rest is tappets. The only location in which

the company has space to expand is at its Trichy plant, which is the youngest of all the facilities. Since it does not want to put all the eggs in one basket, REVL is looking at options to set up a greenﬁeld facility near its second plant situated in Medchal near Hyderabad. It already owns a plot and hopes to take a call on construction of the plant early next, he said. The company is creating a new line for Hero MotoCorp, Volvo and VW Brazil at its Trichy plant. Besides, it has budgeted for an additional manufacturing line but yet to assign a customer to it, though it has several options including Deutz, Mahindra twowheelers and Tata Motors. While it is planning to double the plant ﬂoor size, the actual capacity will increase from the current 31,400 to 81,000 valves per day by FY 2014. This is due to implementation of Lean Production System, he said. Last year, the company reported a turnover of `286 crore with 55 percent from domestic market, 30 exports and the rest from replacement market.

Sintered parts to help contain vehicle weight Akmal Rahman B Chennai

apan headquartered, powder metallurgy sinter metal parts manufacturer, Porite Corporation is working on gear densification technology for automotive applications. The new technology for gear surface densiﬁcation will enhance the gear by improving the surface density at the gear tooth. Established about 60 years ago, Porite Corporation of Japan is known for powder metallurgy and sintered metal parts. It has manufacturing facilities in Japan, Taiwan, China, Singapore, Malaysia, Thailand and USA. Mahindra Hinoday Industries, which manufactures magnetic products for automotive industry, is representing Porite Corporation in India since 2009. The Assistant Manager, Business Development, of Mahindra Hinoday Industries, Nikhil Patil, told Auto Monitor that “Porite group manufactures powder metallurgy sintered prod-

ucts catering to several industrial segments including the automotive segment. The advantages of these products are primarily due to the unique ‘net-shape’ technology, which helps to manufacture components and gears without further machining processes. These products have higher raw material utilisation, productivity and consistency compared to any other technology.” Porite is also into warm compression, metal injection moulding, sintered hardening and vacuumsintered technologies. Speaking about the powder metallurgy product, Patil said that it is better than casting or the forged component, as the new material being developed can offer better metallurgical properties. The advantages of these products are cost effectiveness and minimal part-to-part variations because the dimensions are tool dominated. The ‘net-shape’ technology eliminates the secondary machining processes eventually enhancing the material utilisation

Nikhil Patil, Asst Manager, Business Development, Mahindra Hinoday

up to 95 percent. In the process, the wastage of raw material is also contained substantially. According to him, the process has been declared as a ‘Green Technology’ by Metal Powder Industries Federation. The company also provides technical solutions, besides offering faster product development process at a competitive cost. Some of the components manufactured through this technology include synchroniser hubs and rings, pulleys and parts for shock absorbers and

seats. It also manufactures nonautomotive components and smaller powder metallurgy parts like micro bearings that weighs around a milligram and largest part like a pulley—in the order of few kilograms. The 2011 Ford Edge with a 3.7-litre engine is a good example of how an automobile can be improved by the powder metallurgy technology, with an estimated 30 kg of such parts. And the new programmes in the pipeline will add even more such parts, he said. The average powder metallurgy part by weight in a car in North America is 18.6 kg, eight kg in Japan, 7.2 kg in Europe while it is less than ﬁve kg in India. Mahindra Hinoday has two manufacturing facilities in Pune making ferrite magnets and automotive castings. It manufactures about 70 percent of the magnets used in India for automotive motor applications like starters, power windows, engine throttle controls, HVAC blowers, engine fans and sunroof systems and alternators for two wheelers.

CONTENTS CORPORATE Uncertainty mars vehicle sales, suppliers cautious

Though the sales seemed to have recovered from previous month, the downtrend is clearly evident in the passenger vehicle segment in the month of August

06 GLOBAL WATCH Fiat downgraded by Moody’s

Fiat was downgraded by Moody’s by one step with a negative outlook on concern that American partner will leave the Italian carmaker saddled with huge debtpile

Volvo plans to shift to smaller engines by 2020

Volvo will stop making the biggest engines in its line-up in the next 10 years to help meet tougher emissions rules in Europe, the US and China

GM’s workers guaranteed $12,500 in bonuses in UAW contract

UAW members working for GM will be guaranteed at least $12,500 in bonuses over the next four years under a proposed deal that will also result in 6,400 saved/added jobs

Jaguar Land Rover picks UK for new plant

Jaguar Land Rover will invest £355 million to build a new engine plant in Wolverhampton to manufacture a family of four-cylinder gasoline and diesel engines

Hindustan Motors on a rebound drive

Hindustan Motors is looking at strengthening its product portfolio in the passenger car segment by launching a new compact sedan

Hope for growth prevails at FADA

THE OTHER SIDE

The current customer fatigue seems temporary, opined experts at the 47th Annual Session of Federation of Automobile Dealers Associations, held at New Delhi recently

SPX Service solutions to step up presence in India

SPX Service Solutions is also looking for some greenfield facility or enter into joint venture with a local company to boost its presence in the country in vehicle servicing

AIS mulls measures to ease pressure on profits

Asahi India Glass is weighing the pressure on the profit margins and is getting into lean manufacturing with the help of low cost automation

Tenneco develops lightweight shock absorbers

Tenneco Automotive India is working on developing light weight shock absorbers and struts for the next generation of vehicles in its Indian engineering centres

SKF tech centre groomed as innovation hub

IMAGE

An engineering and management graduate, Medhi has leveraged his career path that spans several countries and functions including manufacturing, sales, marketing, business development and general management

Škoda unveils Laura RS ŠkodaAuto India, a fully owned subsidiary of ŠkodaAuto a.s, Czech Republic, recently unveiled new Laura RS edition in Delhi priced at `1,549,000 (ex-showroom) adding a new product in the wish list of the enthusiast. The 1.8 TSI petrol engine with a power output of 118 kW has the speciﬁc power and torque in its segment. The engine guarantees an exceptional performance and at the same time provides efﬁcient fuel consumption. The car is with dynamic levelling, corner function, with front fog lights and the LED position lamps. The new Laura RS will be available in four sporty shades of Sprint Yellow, Race Blue, Candy White and Magic Black. Tarun Jha, Marketing Head, Skoda Auto India at the unveiling of Skoda’s new Laura RS

Auto Monitor

of the fortnight

SKF India’s technical centre is playing a key role for various OEMs in terms of introduction and adoption of latest technology from SKF’s global portfolio

Santanoo Medhi, Managing Director, Kennametal lndia

Auto Monitor

1 - 15 October 2011

CORPORATE

Ashok Leyland enters light vehicle segment Our Bureau Mumbai

shok Leyland commercially launched ‘Dost’, the first vehicle to be launched from its JV with Nissan Motor, at `3.79-4.39 lakh (exshowroom Chennai). The Dost will be sold through a network, with brand new infrastructure, to be expanded 60 by the end of the current ﬁ scal. Dost, which has a payload capacity of 1.25 tonnes, will be available in three versions with the top-end version featuring air-conditioning, power steering, dual-colour beigegrey trim and fabric seats. It will be available in three colours:

white, beige and blue. Ashok Leyland will offer Ready-toUse Vehicles (RUVs) on the Dost platform for various applications such as refrigerated containers, steel containers, ambulance, aluminium fixed side decks and ser v ice-atsite vehicles from the date of launch. The latest soldier occupies the Small Commercial Vehicle (SCV) market (below 3.5T) which is witnessing a perceptible upward shift in terms of features, performance and payload. The overall LCV market (up to 7.5T) is growing robustly helped by the increase in urbanisation, organised retailing, improved rural connectiv it y coupled

with growth in rural demand. Adding to this, are factors like increased focus on the hub-and-spoke model, ac c ording to the company release. It is being initially launched in the four southern states (Tamil Nadu, Karnataka, Andhra Pradesh and Kerala), Ma harashtra and Gujarat and w ill be made ava i lable across the country in a phased manner as the production ramp up is executed.

Dost RUV Ambulance

Uncertainty mars vehicle sales, suppliers cautious Our Bureau Mumbai

assenger vehicles sales declined by 5.87 percent to touch 191,914 units for the month of August this fi scal as compared to the same month last fi scal, according to the latest data available from the Society of Indian Automobile Manufacturers (SIAM). The cumulative passenger vehicle sales up to August this fiscal stood at 977,201 units, a relatively flat growth of 1.94 percent. Though the sales seemed to have recovered from 183,657 units in July this fiscal, the downtrend is clearly evident in the passenger vehicle segment. Commercial vehicle and two-wheeler sales

have continued to grow at double digit rate thus far ﬁscal. “I do not see a major upturn in vehicle sales with limited upturn in upcoming festive seasons including ‘Navratri’ and ‘Diwali’,” said Executive Vice President, Auto Loans, HDFC Bank, Rajan Pental in an earlier interaction with Auto Monitor. He added that customers are adopting a wait and watch policy, with most choosing to defer purchases. He further pointed out that the phenomenon of increased preference for diesel vehicles in recent months on the back of expanding fuel price differential is causing concern as vehicle manufacturers are unable to produce sufficient number of cars lead-

ing to deferment or cancellation at customers’ end. “The footfalls in the car showrooms have certainly reduced and interest rate rise is impacting the sales of cars. We do not anticipate a major upturn until festive season (Diwali), when we would be in some position to gauge the current scenario,” said Vice Chairman & Managing Director, Hover Automotive India, GM Singh. Hover Automotive India is the authorised distributor of Nissan cars in India and has the mandate to set up the entire dealership network for Nissan Motor in India. “We are looking at possibly a structural skew towards diesel powered models in the passenger car segment with existing fuel

price differential,” Member of Board and Director, Volkswagen Passenger Cars, Volkswagen Group Sales India, Neeraj Garg said during the recent launch of the new Jetta. He added that Volkswagen Polo and Vento are selling close to 65 to 70 percent of cars powered by diesel. Exports of passenger vehicle sales grew by 34.86 percent in the month of August to touch 49,642 units and grew by 22.44 percent in this ﬁ scal to touch 220,256 units. Though the commercial vehicle segment has not been unduly affected by interest rates thus far, manufacturers have adopted a cautious approach. The commercial vehicle sales grew by around 22 percent in the month of August

to touch 64,248 units and the cumulative sales in April-August period grew by 17.8 percent to 301,267 units compared to the corresponding period last ﬁscal. “Going forward, we need to watch for some months before we can be more conclusive on the market growth. Interest rates are a concern at this point time. We will wait and watch before we can get some feeler,” according to the company spokesperson. Tata Motors is maintaining a cautious outlook on the commercial vehicle segment growth in the domestic market. Though interest rate and economic uncertainty are likely to be dampeners for the truck demand, the CV sector could still end on a positive note for this ﬁscal, he added.

Auto Monitor

1 - 15 October 2011

INTERVIEW

“Better standards are drivers of technology” Vehicular emission is one of the major contributors to pollution in India. Programme Lead, Passenger Vehicles, International Council on Clean Transportation (ICCT), Anup Bandivadekar suggests that technological solutions can help in cutting down emissions. He also hints that better emission standards can give impetus to vehicle manufacturers to bring about the required changes at competitive costs. Shambhavi Anand What is the current emission status in India? How does this translate into per vehicle emission? The Bharat Stage standards system, the emission classiﬁcation that India follows, is similar to the European system of emission norms. Passenger vehicles in 13 major Indian cities follow BS IV standards while PVs in the rest of the country follow BS III. Nationwide, most commercial vehicles and buses also follow BS III standards. In comparison, Europe currently utilises Stage V and will adopt Stage IV in 2014 and the US is several years ahead of Europe. Overall, Indian standards lag behind Europe by more than ﬁ ve years and behind the US by more than ten years.

What does this translate into per vehicle emissions? If you take a diesel car in India, there is no doubt that it is very much cleaner than what it was 10 years ago. Yet emissions from diesel cars sold in India today and the ones sold in US and Europe differ by an order of magnitude, especially in regard to particulate matter and nitrogen oxide emissions. Thus, it is possible to further reduce the emissions of diesel cars in India by more than 90 percent. To date, most of the improvements to petrol vehicles have been focused on passenger vehicles. Improvements must continue in this segment, but India must also concentrate on reducing emissions from commercial vehicles. What kind of technology can help in cutting down emissions

of especially commercial vehicles? What is your suggestion? With respect to technology there are two elements that can help reduce emissions—one is engine and transmission technology, and the second is after treatment technology. Advancements in engines and transmission help meet certain emission norms, but the use of after-treatment technology is necessary to reach stricter norms such as Euro V and VI. There are two types of after treatment devices, diesel particulate fi lter (DPF) and a selective catalytic reduction (SCR) unit. One controls fi ne particulate matter (PM) while the other controls nitrogen oxides (NOx). In order to work efficiently, both devices require low sulphur content in the fuel. India has achieved major progress by reducing sulphur content of diesel fuel from 2,500 at the turn of the century to 350 ppm today. Yet India still lags significantly behind the US (with 15 ppm) and Europe (with 10 ppm). If India is able to reduce the sulphur content to 50 ppm, the after treatment devices will be able to reduce PM emissions by up to 70-80 percent. To maximise effectiveness of the after treatment devices (at 95-99 percent), ultra-low sulphur fuel (10-15 ppm) is required. Why are after treatment devices seen as an immediate solution? What will be the cost involved in employing these devices? The diesel passenger vehicles sector has made some progress in terms of reducing emissions, while truck manufacturers still need do a lot more including significant research and development to reduce engine out emissions. An alternative solution is to use after treatment devices. After treatment devices present a cost effective option for meeting the world’s most stringent emission standards. Installing after treatment devices, which can be purchased off the shelf, requires only a small alternation during the manufacturing of the engine, whereas modifying the complete engine will incur huge costs and might not achieve the desired level of advancement.

The after treatment option incurs two costs—the cost of putting the after treatment device and the cost of providing cleaner fuel. But global experience has shown that the benefits far exceed costs, often by as much as a factor of six to 10. Benefits impact both public health and technology progression. Stronger emission standards give impetus to more advanced technologies as the technology we put in place for emission reduction also drives gains in fuel efficiency. Many vehicle manufacturers who have upgraded their engines to meet BS IV standards (eg K10, Kappa) have also increased fuel efficiency of their vehicles. Other technologies that manufacturers deploy such as turbo chargers, or method of direct injection give benefit on both sides. What role can policies play in reducing emission? Globally, policies play a major role in reducing emission. Standards and regulations drive competent technology to the market. Vehicle technology exists but is in want of clean ultra-low sulphur f uel, as engines won’t be able to perform to their best capacity without cleaner fuels. And the technol-

ogy is not just available in the developed nation but also in India. Some commercial vehicle manufacturers make Euro V complaint engines in India for export. These engines can do a lot of good to India. After treatment devices are looked at as an additional cost. Unless there is a standard that requires them to be put in, a manufacturer has little incentive. An aggressive auto fuel policy is required. If we have the policy in place, then the manufacturers will get an impetus to deploy technology. Do you see hybridisation as a long term solution? Hybridisation is very much a mid to long term solution. Hybrid vehicle’s biggest advantage is that they help the engine run at its most efficient mode. There are two primary aspects. The fi rst is the start and stop system, which switches the engine off while the car is idle. The second is capturing energy from braking, known as regenerative braking. A hybrid vehicle uses the braking energy to charge the battery. It also does not require external power source as it recharges battery in the normal operating mode, when additional engine power is available. This is because engines are at higher efficiency when operating closer to their peak output. So, by using the engine to charge the battery when additional power is not required helps store the excess energy for future use, while making sure that engine continues to operate at or near its efficient region of operation. By around 2020, the start-stop system will be standard in US and Europe, and I hope in India too. As of today, Japan is the global leader in hybrid market share, which has 10-11 percent of its fleet hybrid. While hybrids currently cost more than traditional vehicles up front, they recoup the extra cost within around six to eight years and actually save the consumer money over the life of the vehicle. However, most consumers want a pay back of two-three years, and it will take hybrid cars a few more years to achieve that level of costeffectiveness. For immediate results, multiple technologies in the internal combustion engines, both petrol and diesel, are available to meet fuel efficiency and emissions requirements. Beyond 2020 however, there will be rapid hybridisation.

2004

2002

100th Volvo Bus rolls out in India

2005

1000 Volvo Buses in India

Volvo Buses spread across India

2008

2009

2011

A ‘Complete Bus Company’ with a new plant in India

Volvo City Buses across 10 cities

Exports to South Africa

www.volvobuses.co.in

volvo buses. driving quality of life

Bus with 2001 Inter-city True-bus Chassis

Launch of the first

to SAARC 2003 Export countries

becomes a 2004 Volvo ‘Ticket Brand’

2006

Launch of Volvo Low-floor City Bus

brings India’s 2008 Volvo first Multi-axle Bus

2010

Launch of Volvo CNG City Bus

As India continues to change, the public transport cont will change for f better. And Volvo Buses is committed to t lead this change for a safer and world. friendlier wo

with the foresight of our customers, It took a vision along w passengers, passengers authorities authoritie and many stakeholders to make true. Together, we helped the idea take the dream come true shape and drive tthe change.

10 years have gone by, but think back how 10 years ago, just even one Volvo bus made news. Think today and it’s just another day when thousands thous of Volvo buses ferry people across and within cities, bringing joy of travel.

That s when the first true bus arrived. And changed the way That’s people would experience experienc bus travel...forever.

And it all started happening...in 2001.

Remember the days when buses were more like trucks. You wished for a little more comfort than the rough rides. You wished you could arrive fresh and happy after a long journey.

HOW THE MILES HAVE JUST BREEZED BY.

REMEMBER?

DO YOU

EDITORIAL Double Whammy

he second half of September was an eventful period for the country as a whole and the automotive industry in particular, as the Reserve Bank of India hiked the interest rate by 25 basis points and the price of petrol went up by `three, triggered by the weakening rupee against the US dollar. This is the twelfth time that the central bank has raised the borrowing rates in 18 months, while the price of petrol has been hiked for the second time in about four months by the government. The auto industry has been put in a hydro-forming machine—applying pressure from both top and bottom—limiting its growth. Despite repeated requests from the industry and the suggestion by the Chief Economic Advisor of the government, the RBI hiked the borrowing rate in order to contain inflation. Whether the move will contain the inflation or not, it has already contracted the volume of vehicle sales, primarily due to the increased cost of fi nance. Yet another factor that threw the spanner is the increase in petrol price. The second price hike within a span of four months has dampened the enthusiasm of vehicle buyers. The increase in petrol price usually triggers the sales of diesel vehicles but the indications are that it has not, at least this time, because of the higher cost of finance. Diesel vehicles are dearer by at least 20 percent and since fi nance is becoming costlier, the road to the diesel vehicle is also blocked. These factors have slowed down the performance of the auto industry and it is significantly reflected even with the companies paying lower advance tax for the second quarter of this fiscal and reduction in the consumption of steel. According to reports from the taxman, the top 100 companies of the country, including Maruti Suzuki, have paid lower advance tax. While in the case of Maruti Suzuki, it is justifiable as the company has been witnessing a drop in sales for some time on account of production loss due to labour unrest, other companies reducing advance tax payments is an indication of the poor performance in the third quarter also.

The festivities arriving just around the corner could do the magic, but only to some extent since the interest rate hike will affect vehicle loans, home loans, SMEs and corporates, which will eventually lower people’s sentiments. Tightening borrowings is not the only solution to curb inflation. When the inflation cannot be controlled despite increasing interest rates several times over, it is high time that the government looks at other alternatives, rather than hiking the rates further. One of the reasons for increasing the price of petrol is the devaluation of the rupee, as cited by the oil marketing companies. Though the weakening of the rupee is usually a cause for concern, it can to an extent, help the exporters who transact on USD. For instance, of the total exports of $5.2 billion by the component industry in 2010-11, Europe accounted for 36 percent, followed by Asia and North America at 28 percent and 23 percent respectively. It is estimated that close to half of the exports is traded on USD. Does it mean that exporters will have some relief? The answer is ‘No’ as the gains regardless, can be offset by the inflation and the increased cost of fi nance. The government should allow the industry to grow by creating a conducive atmosphere and also enhance affordability of the people, which will inevitably contain inflation. In this issue, you will fi nd some interesting articles on several companies including SKF, Tenneco, Hindustan Motors and SPX. Wishing you much pleasure reading. Do send us your feedback.

T. Murrali t.murrali@infomedia18.in

FORTNIGHT’S QUOTES Volkswagen official communication to Suzuki’s plea for retractment of VW’s ‘breach of agreement’ charge and desire to end the partnership with Suzuki Motors

Sergio Marchionne, Chief Executive Officer, who runs both Fiat and Chrysler

“We learned the hard way in 2008. We have cleaned up. We have enough liquidity in the system, here (at Fiat Industrial) and on the car side, to weather the storm. Life will go on,”

“Such theatrical actions are unhelpful in the current situation”

FOUNDER & EDITOR, NETWORK 18 Raghav Bahl

GROUP CEO, NETWORK 18 Haresh Chawla

PRESIDENT & EDITORIAL DIRECTOR, TV 18 Senthil Chengalvarayan

GROUP COO, NETWORK 18 B. Sai Kumar

EDITOR T. Murrali EDITORIAL TEAM Abhishek Parekh, Features Editor Nandita Rohit Kapadia, Senior Copy Editor SENIOR CORRESPONDENT Nabeel A Khan CORRESPONDENTS Shambhavi Anand, Bhargav TS, Akmal Rahman B CONTRIBUTING EDITORS Sirish Chandran, Bertrand D’Souza ASSISTANT ART DIRECTOR Varuna Naik SENIOR DESIGNER Mahesh Talkar CHIEF PHOTOGRAPHER Mexy Xavier PHOTOGRAPHERS Neha Mithbawkar, Senior Photographer Joshua Navalkar BUSINESS CONTROLLERS Pukha Dhawan, Lovey Fernandes, Akshata Rane

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Printed by Mohan Gajria and published & edited by Lakshmi Narasimhan on behalf of Infomedia 18 Limited Editor: T. Murrali Printed at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Infomedia 18 Ltd, ‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (W), Mumbai - 400 028. AUTO MONITOR is registered with the Registrar of Newspapers of India under No. 67827/98. Views and opinions expressed in this publication are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Infomedia 18 Ltd nor any of its employees accept any responsibility for any errors or omission. Further, Infomedia 18 Ltd does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved.

Auto Monitor

1 - 15 October 2011

CORPORATE

Hindustan Motors on a rebound drive a simple design with a traditional all terrain capability,” Managing Director, Hindustan Motors, Manoj Jha told Auto Monitor. The new car will have a less than 1.5 litre diesel engine but will have above 120 nm of torque to enable it to be all-terrain vehicle. On asking about the pricing, Jha said he would like to keep the price very attractive but did not divulge details, as the price of the vehicle has become very dynamic and it keeps changing because of the commodity price and other factors. HM feels that it was important to be prepared to match up and assist its strength and weakness and know where it wants to go further. The vehicle-maker would prefer that it doesn’t operate across a wide spectrum, but would rather choose a segment

Nabeel A Khan Kolkata

industan Motors (HM) is looking at strengthening its product portfolio in the passenger car segment by launching a new compact sedan which will be a modified and shorter version of the legendry ambassador. The car manufacturer is on the verge of finalising an appropriate engine for the vehicle. The company hopes to test and fi nalise the engine by the end of this year. “We are working on that, it will take some time. The engine will be fi rst testedmounted on the Ambassador. However, it will take sometime to launch the new vehicle as we are still designing the body and other parts of the proposed vehicle. The compact sedan will be in

develop the new product, which will have close afﬁ nity to its legendry product—Ambassador.

Mitsubishi Partnership

Manoj Jha, MD, Hindustan Motors

where it has enough strength and penetration in the market or it could create the right penetration in the market. Based on this philosophy, it has decided to

The home-grown vehicle-maker along with its Japanese partner, Mitsubishi is planning to launch a Pajero Sport in the later part of the ﬁnancial year. The company is relying on the success of the vehicle in the global market and hopes to create a similar acceptance in the Indian market. Without disclosing the price of the new vehicle, Jha said that it would be priced competitively. The new Pajero will have some minor changes to be suited to Indian environment. The new SUV will have 2.5-litre engine and an upward of 170 PS with a torque of 300 nm. The vehicle will be assembled from its Chennai plant. The company claimed that in the ASEAN market, which includes countries like Thailand, Indonesia, Malaysia, the new Pajero Sport is enjoying the number one spot. In Thailand alone, it claims to have been selling 1,500 units a month while 6,000 units in total ASEAN countries. In India, it hopes to sell around 500 units per month.

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This that the period of ner Tim Mangane logies a BorgWar tic fuel economup to 15 percent techno & CEO, issed over segment. automa offer to seek tic transm ng y through four perhas harnes small car automa the with damper tion here, includi close to fuel econom MPS6 h its of interac time for India have compa nies Siel, issions, throug to CEO car Honda transm At a recentan and ements n 15 nello sion. Few Mahind ra, to small Maruti and s, betwee ai, cent improv rs the Chairm Tim Manga ar and y be catered China Hyund islight turl system acture rner, initiall Kirlosk India, tion transm therma t increase in percent manuf tBorgWa ts in atic produc tic Toyota ve vehicle segmen ercial autom automa four 30 percen and up to fi have constan said Comm offer about er, the gers the globe at technologies Japan. Howev grow gradnce in bochar in VCT. across sions. econcomme is set to e the compadue to looking fuel is will ission said increas upgrad years will ly been five nello he said. ission in India e transm offer better minim al harges ny has pricing. Manga years, the next and customers’ In that could growth d with c that turrboc ually in The compawith new free cant presenc Auto transm with couple percent best cost. ing traffi hassle ny hopes ensive d by design omy comes at the see a signifi increas better and lised’ about 148 appreh followe ed the ns but yet to variant engine —2witness a ‘tropica ission users are emissio five years 102 percent y. Though 19 ts. need for end . next in The petrol powerf ul develop the as comfor engine t of in the tion present tic transm s, the new fuel econom addres sed order to driving acsegmen 1798 cc availaproduc an all rner is automa are lof poor t market VVT-i diesel vehicle techno BorgWa globall y manuf sort of issues . ted by is also nents ZR Dual ing teching differen of new with these ies suppor percent address will be leverag h a host improv ements tive compone and ed so countr g by 66 The variant per CVT-i shifty throug automo growin both-su in mantial s—engi compan that it has developinputs similar n turing ble in sequen manua l s neously divisio tly ogies, two division peed them withEurope, nologie simulta also. Curren engine ed under seven-s season in happen ain. The or six-spe four-speed issions tage of far and operations n to drivetr matic . The ual transm ficant percen sold in in additio ons. given way issions from its s transm car has now and Japan an operati an insigni ger vehicle speed China with 7 Americ will be AT in this CVT-i the passen super its North transm ission and will facility tic. to the le in Chakan rcial tial shiftma in China The new availab t. The sequen ctured will be priced from segmen d to start comme ber manufa The car Septem and is and is expecte by around colours ny has s in petrol tion seven produc the 00 onward The Compa during `10,53,3 s. this year. rate. variant BMW, new orders diesel ers like John the overall case of bagged than in custom , Brose, ing faster is a relucta nce decision year from from the agen, Nissan ‘There MONITOR ers nal orders now on Volksw lly petrol DATA PV-mak and additioic and interna ek Parekh especia most buyers Deere ic Top 5 Abhish high fuel Change for a car, Domest g domest i to opt given the May-11 existin before ers. Mumba ny is has d ones May-10 custom compa 3.86% ering powere will be a while in a tional Sector Engine l team to er, the It 93,519 a facilmarket Moreov setting up prices. to the uprajit 90,041 er, the 14.63% return MSIL an interna entry ing Moreov next phase 31,123 buyers set up evaluat for its he said. around d 27,151 and prepare of to draw e way,’ -9.26% Sanand yet moulde HMIL major vicinity is evaluat plastic of eeler ity in 22,718 ts, , but in the terms two-wh 25,035 y for 27.53% of growth on produc of growth te plan in ts to be TML t in the strateg couple 18,515 extrusi value 25 percenover the last cult for 14,518 up a concre and produc 0.95% body parts, among other based & MD, t M&M ^ ent The comit diffi 8,292 Chairman segmen units the there. plastics investm Vice made or meet tank `40-50 Rai, 8,214 ic has ctured ers rs to Kumar GMI ore based synthet years g around ing manufa 2W-mak K Ajith ion added Bangal acturer, nent supplie Engineer c Top 5 investin expans nents. Change Suprajit ion plans Domesti pany is the current to compo d from OEMs. embarked compo cables manuf ore and Apr-11 y expans nonin hoping deman ny has e the crore Apr-10 in Bangal capacit y ering is plastics 14.13% Its capacit EOU for the is in control Sector mmes its The compame to increas 50 t in t Engine 485,122 se percent raise progra segmen Supraji its experti around 425,058 at 100 enits bid India to 13.87% . e on a program y by HHML tive cable implem logy in North 218,321 leverag capacit million cables 50 percent consol idatautomo stage of the the base. ing techno 191,726 overall t 100 16.26% also in ny’s by around cables BAL process y its revenue percen t from the fi nal company is 158,829 million s. It part of to supply The compa by 42.66 percen The to 150 136,621 a major to diversif 2.77% `265.78 hoping grew tation. 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HM is also looking at broadening its reach to various sets of customers through increasing the network of dealers and road shows to provide ﬁ rsthand experience to its customer. It is planning to add at least 10 dealerships, which include both HM and Mitsubishi products, every quarter. The vehicle-maker recently launched its second round of West Bengal road show to showcase its recently launched small commercial vehicle, Veer along

with the iconic Ambassador and light commercial vehicle Winner XD PLUS. The 15-day road show shall intensely cover the districts of East Midnapur, West Midnapur, Bardhaman, Nadia and Hooghly (all in West Bengal). The event is a sequel to similar promotional activities conducted across West Bengal, Assam, Orissa, Bihar, Tamil Nadu and Puducherry (Tamil Nadu) with Ambassador and Winner. Veer is a new entrant in the company’s ﬁeld promotions. More road shows will be launched soon again in Orissa and Bihar as also in Gujarat, Maharashtra, central and north India. Two models of the 800-kg commercial vehicle Veer and Veer LX were launched recently with an introductory price of `3.30 lakh (ex-showroom Kolkata). It is showcasing them from the eastern part of the country, starting from West Bengal. The Veer is built on the tried and tested Ambassador platform, incorporating changes in transmission and suspension systems required for a sturdy load carrier. The vehicle is available in both diesel (BS III) and CNG (BS IV) versions and in two models— Veer and Veer LX. While Veer has a separate load tray, Veer LX’s load tray is seamlessly integrated with the front cabin. This correspondent took a test drive of both the variants of the Veer and found them to be competent enough to move across all kinds of roads. The uniqueness of Veer lies in the fact that it also offers the comfort of a car. In fact, the three-seat bench provided in the front cabin offers better comfort levels compared to other vehicles in this segment.

Auto Monitor

1 - 15 October 2011

STUDY

National Hybrid/ Mobility mission he National Hybrid / Electric Mobility Study was conducted on behalf of the Ministry of Heavy Industries and Public Enterprises and the Society of Indian Automobile Manufacturers (SIAM) by Booz & Company recently. The overall objective of the study is to develop a mission plan and roadmap for promoting the adoption of a range of electric mobility solutions for India, which can enhance national fuel security, provide affordable and environmentally friendly transportation and enable the Indian automotive industry to achieve global manufacturing leadership. The study will provide a factbase to the National Board for Electric Mobility (NBEM) and the National Council for Electric Mobility (NCEM) towards formulating the National Hybrid/ Electric Mobility Plan for the next ten years.

Potential In India Various alternate powertrain technologies are available today—hybrid electric vehicle, plug-in hybrid electric vehicle, extended-range electric vehicle and battery electric vehicle. Hybrid electric vehicles have both an IC engine and an electric drive (powered by a battery), which work in tandem leading to higher fuel efficiency. If the battery is used only when vehicle is started or stopped, it is classified as mild hybrid. Such vehicles also have regenerative braking with limited motor assist. In full hybrids, a battery assists the engine while starting, and the vehicle can also run on battery alone but only for short distances (~2-3 km). These vehicles also have start–stop and regenerative braking capabilities. The plug-in hybrid and extended range electric vehicles can run on batteries alone for a longer distance (~20 to 60 km) and have an IC engine backup as well. These vehicles require external charging of the battery (through AC mains). Battery electric vehicles run solely on batteries and need to be charged externally. Their driving range is limited by the battery size and capability. After analysing the expected improvements in price and performance evolution of hybrid / electric vehicles, the total potential in India was identified as five–seven million in annual sales by 2020. The breakup of this potential is: (i) Battery electric two wheelers: 3.5–5 million (ii) Hybrid four wheelers, buses and light commercial vehicles: 1.3–1.4 million (iii) Battery electric vehicles in other segments (3W, 4W, Bus, LCV): 0.2–0.4 million Achieving this potential can result in annual liquid fuel (petrol / diesel) savings of 2.2–2.5 million tonnes annually by 2020, which translates to crude oil savings of ~`13,000–14,000 crore annually by 2020. Bulk of these fuel savings (>50 percent) could come from battery electric two wheelers. Four wheelers are also expected to account for 20–25percent of these fuel savings, followed by buses, light commercial vehicles and three wheelers in decreasing order of fuel savings. Other benefits which can be achieved through such penetration of hybrid / electric vehicles include: (i) Potential total reduction of 1.3–1.5percent in CO emissions (well to two-wheel) by 2020 (ii)

depreciation can also be provided to encourage automobile man• Economic returns for Industry ufacturers and “Economically • No/limited subsidies required Viable” component suphenceforth pliers to build assembly a nd 3 Local Manufacturing Capability manufacturing plants in India. • Viable solution for “Tipping Currently in consumer at an Point” acceptable price point India, automobile manufacturers and component 2 Technology and Application Development/ Acquisition suppliers have Creating Consumer Acceptability 1 ver y l i m ited technology and “Infeasible” 4 Infrastructure manufacturing capability in 2011 2016 2017-18 2020 Time hybrid and electric vehicles, as a Note: Japan’s investment is from 1998–2014 result of which, Source: ICCT, Booz & co analysis most of the hybrid remain higher than the equivalent At least 60,000–65,000 additional / electric components are importprice expectation of the Indian jobs through local manufactured from abroad. Among the five consumer ($210–275/kWh) leading of hybrid / electric vehicles key components (battery cell, ing to a higher acquisition cost by 2020 (over and above the jobs battery management system, than consumer expectation. created by growth in conventionelectric motors, power electronThis would be especially true for al vehicles). ics, transmission system), India’s battery electric vehicles, due to right to win was evaluated based Unlocking The Potential highest battery size. on current capabilities, fi nancial There are four key barriers Consumer research has investment required and global which need to be overcome to revealed a higher preference for competitive intensity. Due to achieve the potential for hybrid / hybrid (~12–15 percent) and plugpresence of a mature software electric vehicles in India. A clear in hybrid (~seven–eight percent) and electronics design indusroadmap needs to be supportcars over battery electric cars try, presence of electric motor ed by the government, as well as (~five–six percent). Most impormanufacturers, low to medium the industry, to realize the full tantly, consumers have expressed financial investment requirepotential. significant sensitivity around ments and low global competitive Currently, the solutions availacquisition price, with greater intensity, India has a higher right able in the market don’t meet preference at lower price. This to win in battery management consumer expectations, and hence makes the case for cash incensystem, electric motor and power the market is at the “infeasible” tives stronger. Tier I and II cities electronics compared to other stage. To achieve the tipping point have expressed a greater willingcomponents. These components for the market, the first step is to ness to adopt hybrid / electric could be prioritised for R&D in bridge this price–performance gap vehicles compared to Tier III and the next five to ten years. for consumers, and bring acceptIV cities. Consumers have cited While the government can fund able products into the market maintenance cost, battery cost, the basic research required for through demand side and suppickup, top speed and charging battery cells and electric motors, ply side interventions. In parallel, time as major factors they would automobile manufacturers can the industry also needs to invest consider while buying hybrid / invest in product development in building manufacturing and electric vehicles. Also, adoption for other components. Further, technology development capabilof fast charging terminals could investments are also required ities. Along with this, power and be monitored with a few pilots to establish component testing charging infrastructure investbefore full rollout, as consumer and validation facilities for four ments need to be made to facilitate sensitivity for charging time is wheelers (eg test equipment like adoption. Once these barriers are not very high. e-motor and battery test beds). mitigated, the industry as a whole Incentives are required to For manufacturing, the councan achieve economic viability. By lower the price difference between try can follow a phased approach. 2020, a self-sustaining stage can be hybrid / electric vehicles and petIn phase 1, the industry should targeted for the industry. rol / diesel engine vehicles. These focus on domestic assembly of The interventions required to incentives can be based on batvehicles, with imported composupport the growth of the hybrid tery size, and vehicle technology. nents. However investments in / electric market can be classified To promote local manufacturR&D should be initiated in this into five areas—fuel efficiency ing, demand incentives can be phase. After this stage, the indusregulations, demand and supply subject to local assembly of vehitry should concentrate on higher related interventions, research cles, and increasing domestic indigenization of components, and development support, and value addition (calculated from and local sourcing of compoinfrastructure investments. bill of material of domestic comnents should start. In eight to ten These have been discussed below, ponents). To encourage domestic years, a greater degree of local by vehicle segment. manufacturing of components, manufacturing of battery, elec(1)Four-Wheelers: current import duty benefits can tric motor and power electronics Improvements in technology and be phased out over a period of could be developed. As autoglobal scale effect are expected to time. Also, incentives should be mobile manufacturers in India bring down lithium ion battery given only when a vehicle meets develop these capabilities, they costs in the future. Our estimates the minimum warranty and can also consider exports to marindicate about five–seven percent quality standards approved by kets outside India. YoY decline in battery prices in the appropriate industry assoModerate investments in future, which translates to price ciation or institute. Production infrastructure would be required level of $325–430/kWh by 2020. incentives such as tax holidays for by 2020 to achieve the potential However, these prices would still a limited period and accelerated for hybrid / electric vehicles in Potential Roadmap for Hybridization/ Electrification

“Self-Sust aining”

xE V P enetration

E-Mobility Models: Comparison of Select Countries

Lever

China

>$5B

>$20B

Japan

France

>$1.7B

>$3.5B

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India. The total additional power generation capacity is envisaged to be less than 250 MW for fourwheelers. These investments could be made after rolling out few pilot programs to evaluate whether public charging stations (eg parking stations and malls) actually have a significant impact on sales. (ii) Two-Wheelers: As per consumer research, high preference has been revealed for battery electric two wheelers (~55–60 percent). Similar to the four wheeler segment, consumers are most sensitive to acquisition price which is the most important decision factor. Currently, there aren’t any commercial electric motorbikes in India due to higher performance expectations of the consumers and the high potential price for such vehicles. (iii) Buses: Higher preference has been expressed for hybrid buses by consumers compared to plug-in hybrid and battery electric buses. Like most other segments, consumers have expressed sensitivity around acquisition price. Hence cash incentives would be effective. Demand assurance can play a critical role in promoting hybrid / electric buses, specifically in intra-city operations, metro feeders etc. Hybrid buses for a proportion of new demand for intra-city buses can be mandated. State Transportation Units purchase ~22,000 buses per annum. ~ 50 percent or 11,000 buses are intra-city. A proportion of this annual procurement can comprise hybrid buses. The premium bus segment (low floor A/C) can be a target for electric buses, as price points are comparable (òne–1.3 crore for hybrid / electric bus compared to `60–70 lakh for petrol / diesel bus). Price for a hybrid / `25–30 lakh). Hence hybrid / electric vehicle adoption in this segment is expected to be difficult. (iv) LCVs: In addition to acquisition price, consumers have shown sensitivity to charging time. Lower charging time leads to an increase in latent demand. Demand incentives shall be required to reach sufficient scale to lower costs for hybrid / electric light commercial vehicles. Incentives can be given to a specified number of units per year for the next five to six years, after which they can be phased out. These vehicles can be used in niche applications such as airport pick-ups and transportation within factory premises. Fast/rapid charging stations may need to be established to increase adoption of such vehicles. (v)Three-Wheelers: Consumers have expressed a significant preference for hybrid and battery electric three-wheelers. Acquisition price remains their major concern in this segment as well. Higher preference for BEV 3Ws has been expressed in Tier III and IV cities. In summary, there is potential for significant liquid fuel savings through the adoption of hybrid and electric vehicles. However, barriers need to be overcome to enable adoption and increase customer awareness. These will require substantive government interventions as well as commitments from OEMs to develop the ecosystem for hybrid and electric vehicles in India.

Source: Booz & co Analysis

(Courtesy: Booz & co.)

1 - 15 October 2011

Auto Monitor

CORPORATE

NEI to set up facility near Hero MotoCorp’s proposed plant Shambhavi Anand New Delhi

at iona l Eng ineering Industries, Jaipur (NEI), a CK Birla Group company, the manufacturer of leading NBC brand bearings for automotive and industrial segments and the winner of the prestigious Deming Award in 2010, is mulling setting up its fourth plant in the country. “We are planning to set up a new plant which will be our fourth facility. By December 2011 we should be able to fi nalise the location. Currently, we are weighing the situation, keeping in mind our customers and their plans. Once the plant is set up, we will start by making ball bearings and then move to taper roller bearings,” NEI chief executive officer Rohit Saboo told Auto Monitor. The two destinations under consideration are Gujarat and Karnataka. Since the plant will cater to the needs of Hero Moto Corp majorly, the fi nal location will depend upon the two-wheeler manufacturer’s proposed plant to be put either in Gujarat or Karnataka. On one hand in Gujarat, NEI has major customers like Maruti Suzuki while on the other, Karnataka offers the advantage of proximity with Honda Motorcycles and Scooters India (HMSI). As per the company’s plan, the new plant will be spread across an area of 15 acres and will be highly automated to reduce dependence on manual assistance sharply. For instance, a usual line requires five people, the new automated line will reduce this number to two. Around 98 percent of the highly productive and automated machines will be imported from either Japan or Europe. NEI plans to invest `100 crore in the machinery and support paraphernalia. The land and building may cost somewhere between `10 to 15 crore.

3S facility for Ashok Leyland Our Bureau Chennai

VS & Sons, one among the largest automobile distribution company in the country has inaugurated the 3S (Sales, Service and Spares) facility for Ashok Leyland commercial vehicle in Karur, about 300 km southwest of Chennai. This is the 18th outlet of the company exclusively for Ashok Leyland products in Tamil Nadu. The new facility was inaugurated by the Executive Director, Ashok Leyland, Rajive Saharia along with the President, TVS & Sons, N Krishnamoorthy. They jointly handed over 51 new vehicles to customers. The company has plans to establish its facilities in a grid of 50 to 100 km depending on the requirement of the location so that customers need not send their vehicles off their route for the purpose of servicing. Besides network development, it has taken up several improvement initiatives in commercial vehicle servicing using tools such as Kaizen and Lean, which helped reducing the turn-around time of the service by half of what it was one year earlier.

The company is also setting up another plant in Mahindra Special Economic Zone (SEZ) in Rajasthan for its joint venture with local company, NTN. This plant will produce third generation wheel bearings for companies like Hyundai and Toyota. The construction which is already under progress will be completed by the ﬁrst quarter of the next year. The company is hopeful that the plant will commence production by the fourth quarter of 2012. The JV which is known as NTN NEI Manufacturing India (NNMI) already has a plant in Bawal. NEI has also planned to increase it’s spend on research and development signiﬁcantly. It plans to spend around two and a half percent of its total revenue on R&D this year. Currently its R&D spend was 0.5 percent of the total revenue. “We have realised

that for a better future we must rely on our own R&D strength. Hence, we will be deploying more funds for the same. While this year we have allocated `25 crore for research work from next year it will increase slightly and be over three percent of the revenue annually,” Saboo informed. It plans to double the size of its R&D team and is also constructing a building in Jaipur for the purpose. Talking about the recent slowdown triggered by the hike in interest rate of vehicles Saboo said, “While some segments have been affected by the slowdown, others are still doing well. Twowheelers and tractors are not affected but passenger vehicles and commercial vehicles have been slightly affected. Though some pockets in the CV segment like light commercial vehicles

and one-tonners are still doing well.” The capacity utilisation of NEI has come down from 90 percent to 86 percent. The company has made no alterations in its investment plans due to the “perceived slowdown”, according to Saboo. “About two years ago, we had planned that we will invest `150 to 200 crore every year and we will continue to invest that amount,” he added. The company has crossed a turnover of `1000 crore and is bullish about the next year as well.

Rohit Saboo, CEO, NEI

Auto Monitor

1 - 15 October 2011

CORPORATE

Our Bureau Mumbai

issan launched ‘Sunny’ with a base price of `5.78 lakh (ex-showroom New Delhi) putting it against Swift Dzire and Toyota Etios in a growing mid-sized car market. The new launch is expected to strengthen the company’s bid to increase its global marketshare from around 5.8 percent currently to more than eight percent. The tenth generation Sunny is 30 mm wider than the Micra and has sold around 16 million units in 140 countries till date. The model is available in three variants XE (`5.78 lakh), XL (`6.88 lakh) and XV (`7.68 lakh). The base model XE offers body coloured bumpers, onboard drive computer, manual anti-

dazzling mirror, headlight on warning lamp, key remove warning lamp, ABS, EBD and driver airbags. The other two variants offer all the above features in addition to steering mounted audio controls, rear AC vents, driver side power windows and other safety and comfort features. In India, it will be available in six colours: bronze grey, blade silver, storm white, sapphire blue, onyx black and brick red. The model has been certiﬁed by the Automotive Research Association of India (ARAI) to provide mileage of around 16.95 kmpl. “We are conscious of the demand for an economical vehicle that can offer value for money to the Indian buyers,” said Vice Chairman and Managing Director, Hover Automotive, GM Singh.

Nissan has already set up 45 dealerships in the country and additional 40 odd dealers are expected to become operational by the end of next year. “Our plan is to cater to different customer segments and cover more than 80 percent of the available market in major towns and cities. We are looking to have diesel and automatic transmission options in the line up in the near future,” said Vice President, Product Planning and Program Management Ofﬁce, Nissan Motor India, Sathoshi Matsutomi. He added that the company is evaluating on having a diesel engine below the current family (starting 1.5 litre capacity) and there is a positive inclination on part of the parent company to develop the engine for different markets including India.

Photograph: Joshua Navalkar

Nissan to net eight percent global passenger car market

Sunny at the launch

Bhargav TS Chennai

he name ‘Sunny’, accordingto Nissan depicts SunGod, and also means an auspicious beginning tothe day. Launched recently, Sunny has been designed to meet the demands of the Indian customers with respect to space, style and pricing.

The Differentiator During a recent test drive, it was found that the car has been developed to satisfy the needs of the driver, in terms of having spacious leg room and longer wheel base, at 2,600 mm. This can be a big differentiator, as Sunny will stand apart when compared to

cars in the same segment. The V-platform that stands for versatility, shows the way that Nissan has altered the vehicle’s dimensions without affecting its maneuverability.

Highlights The USP of Sunny’s interiors is space especially in the rear seat. You can cross your legs comfortably and sit in the rear seat even when the front seats are fully pushed back. It is comparable to that of few luxury cars. Sunny has a lot of Micra in it. Apart from the instrument panel, music system and HVAC vents on the centre console, everything else has pretty much been inherited from the Micra. To keep the passengers seated at the rear cool,

Nissan has developed a unique system for circulating air from the HVAC system, in the second row. It has a blower with a twinspeed controller that catalyses the air ﬂow to the rear seats. As there is no duct from the HVAC system, the cost is optimised while also facilitating circulation of cool air inside the cabin. However, the noise of the blower, when run in full speed, is a deterrent as it disturbs the quiet cabin ambience.

Cabin & Power The driver can get good view from the cabin and the vehicle is stable even at speeds up to 140 kmph. It is powered by 1.5 litre 16-valve petrol HR15DE series engine developing 97 BHP

Photograph: Bhargav TS

Sunny keeps the rear passengers cool

A closer view of Sunny

of power at 6,600 RPM and 134 nm of torque at 4,000 RPM. The engine noise inside the cabin is considerably enhanced in a petrol driven car. This could be

due to lack of insulation shield under the bonnet. Even while the engine is idling, the NVH levels are slightly on the higher side outside the car.

1 - 15 October 2011

Auto Monitor

CORPORATE

VDMA looks at growing partnership in engineering sector Our Bureau Mumbai

DMA, an association of German machine tool manufacturing companies, is looking to have deeper engagement with Indian engineering companies, including the ones catering to the automobile sector. The association is looking to organise a series of interaction between Indian and German manufacturers in the machine tools business with particular relevance for the automotive sector. The association has marked 2011 as the ‘Year of Germany’ in India and this gesture will be followed by ‘Year of India’ in Germany in 2012. The officials from VDMA expressed confidence on more partnership and cooperation that are likely in the upcoming ‘Germany and India 2011-12: Infi nite Opportunities’, an exhibition that will bring together 200 projects from various fields to Mumbai in November and will be held in six other cities in India. “During the fi rst six months of 2011, goods movements from Germany to India totalled Euro 5.15 billion and of this, machinery deliveries amount to around Euro 1.66 billion,” said Managing Director, VDMA Verlag, Stefan Prasse. VDMA Verlag is a wholly owned publication subsidiary of VDMA.

Trade Benefits According to data available from the association, the trade between India and Germany reached Euro 15.4 billion in 2010. Total exports to Germany were to the tune of Euro 6.2 billion while imports from Germany stood at Euro 9.2 billion during the period. The top sectors of German exports to India were machinery, chemical products, data processing, electronic and optical equipments. Consulate General of the Federal Republic of Germany, Dr Leopold Theodor Heldman said that German companies can provide cutting-edge technologies in the area of clean water and air for solid waste management and for recycling, eco-friendly product processes and technologies and regenerative energies for solar and wind energy management. He added that German automobile companies have already placed their conﬁdence in the Indian market by setting up technology centres as well as manufacturing facilities in the western part of India and such investments are likely to grow in the future.

Exports To Germany The engineering exports to Germany during 2009-10 stood at around $1.39 billion and increased to around $1.92 billion during 2010-11 indicating a growth of around 38.12 percent. The items exported to Germany included machinery and instruments, transport equipments, metals like iron & steel bar/rod, ferro alloys, non-ferrous metals and alloys and other products and services. “E n g i n e e r i n g E x p or t Promotion Council has signed an agreement with VDMA to

strengthen cooperation between companies in both countries and we are already seeing benefits from such partnerships going well into the future,” said EEPC India’s Aman Chadha in a statement issued by his ofﬁce. He further pointed out that several positive steps taken by the government towards a proactive engineering trade promotion policies have led to growth in the engineering exports. These measures include removal of tariff protection on capital goods, de-licensing of heavy electrical industry and allowance of 100 percent FDI, initiatives focussed on infrastructure development and construction, power generation and better supply infrastructure

and reduction of customs duties on various equipments. He added that though growth in exports is looking good and is likely to continue on a positive trend, the exports may dip as DEPB scheme is taken off.

As A Bridgehead In 2010, the total import of machinery from Germany stood around Euro 3.12 billion, a 22 percent growth compared to the previous year. In 2009, the import of machinery by India stood at around Euro 13.3 billion with share of German made machinery at around 18 percent behind China (19.9 percent). The share of German machinery imports into India was higher than that from

the US (11.8 percent) and Japan (8.3 percent), according to the data available from VDMA. The VDMA India ofﬁce acts as a bridgehead among German and Indian industry and is making efforts to foster closer business cooperation among two countries. In addition to servicing its member companies in terms of market entry, the association also helps Indian companies looking for German technology and technical collaboration, joint ventures, tie-ups among German and Indian companies. VDMA’s Indian ofﬁce also coordinates the bilateral forum for closer interaction among the two countries in the mining sector, infrastructure, energy and agriculture.

The VDMA India office acts as a bridgehead among German and Indian industry and is making efforts to foster closer business cooperation among two countries. The association also helps Indian companies with German technology & technical collaboration

Auto Monitor

1 - 15 October 2011

CORPORATE

Hope for growth prevails at FADA Our Bureau New Delhi

he Indian automotive market is poised for a big leap forward. The rising income levels, changing life styles, growing aspirations of rural India and increasing urbanisation are the drivers that will propel the industry ahead. The current fatigue seems temporary, opined the various experts at the 47th Annual Session of Federation of Automobile Dealers Associations (FADA), held at New Delhi recently. Speaking on the occasion, Vice President, Marketing, Sales and Aftersales, Daimler India Commercial Vehicles, VRV Sriprasad, said “Superior products and innovation are necessary conditions, but will not be a sufﬁcient for ‘brand differentiation’. Consumer experience will

play a bigger role as product differentiation will cease.” Talking about Daimler India Commercial Vehicles, Sriprasad said that Daimler, the inventor and pioneer of automobiles, is set to challenge conventional wisdom and bring about a paradigm shift in commercial vehicle space. He revealed that Daimler India would be introducing the next generation trucks designed by the Indian engineers for the Indian people at competitive prices within a year, to challenge the near duopolistic character of Indian commercial vehicle industry in India. Another dignitary present at the event, Director, NCAERCentre for Macro Consumer Research, Dr Rajesh Shukla, in his presentation, highlighted the changing Indian consumption basket. He noted that while rural

Rakesh Jain, FADA committee member addressing the dignitaries; (L-R): Satyendra Garg, VRV Sriprasad, Nikunj Sanghi, Anil Dua, Dr Rajesh Shukla & Mohan Himatsingka

India is still 13-14 years behind urban India in terms of non-food consumption, which has been rising steadily both in rural and urban areas and augurs well for the automotive market in India.

With GDP growth likely to rise by nine percent through to the year 2015, and incomes of both urban and rural households rising, the auto market is expected to record a healthy growth.

While Sr Vice President, Marketing & Sales, Anil Dua, Hero MotoCorp, painted a bright picture of automotive scenario, he added that the huge untapped market would sustain the growth. He exhorted automobile dealers to create their own service brand equity, as it is the customers’ experience and service, which would be the differentiating factor in the highly competitive market. Earlier, welcoming the guests, Nikunj Sanghi, President, FADA, said passenger vehicles that had been growing at a rapid pace have largely been hit by internal and external factors. Commercial vehicle sales, while still in positive territory, are growing. However, the current rate of growth pales against the heady 25 percent growth during the previous two years. The fact that two-wheelers are holding steady inspires conﬁdence and guarded optimism. Expressing his cautious optimism, Sanghi hoped that the current slowdown was transitory and the Indian auto market would regain its buoyancy sooner than later.

Mathworks India to host user conference Our Bureau Chennai

athWorks, one of the world’s leading developers of software for technical computing and ModelBased Design is organising the second annual MathWorks India User Conference at ITC Gardenia, Bengaluru, on 20 October, 2011. The one-day conference to bring together MATLAB and Simulink users across industries. The event is packed with insightful presentations and demonstrations relevant to engineers, scientists and managers at any level of proﬁciency from across the industrial spectrum. Sessions will be presented by MathWorks technical experts as well as customers of MathWorks India. Vice President of Marketing, MathWorks, Richard Rovner, will deliver the keynote address entitled, ‘Driving Innovation and Efﬁciency with Model-Based Design’. The talk will highlight recent applications of ModelBased Design, and expose the critical underlying technologies based on MATLAB and Simulink, overview new product enhancements from MathWorks, and touch on the extension of Model-Based Design into academia, ensuring the growth of the next generation of engineers and scientists.

1 - 15 October 2011

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SPX Service solutions to step up presence in India Shambhavi Anand New Delhi

PX Service Solutions which provides engineering, manufacturing, distribution and customer support services to all segments of the global vehicle service market, is planning organic and inorganic expansion to expand its footprint in India. The company which earns one billion dollars from the automotive business out of the total revenue of seven billion dollars, is also looking for some greenfield facility or enter into joint venture with a local company to boost its presence in the country. “The potential that the Indian car market holds is immense and we are confident of growth here. We have doubled our size in the Indian market in the last three years and expect to outpace the growth of the industry significantly,” President, SPX Service Solutions (Global), Tanvir Arfi told Auto Monitor. However, he did not divulge further details about the expansion plan. The company, which primarily manufactures equipment for

Fiat on offensive for upcoming festive season

iat India Automobiles is offering benefits of upto `1.3 lakh on the Linea and `75,000 on the Punto in the run up to festive season. This scheme includes exchange benefits of up to `20,000 allowing customers to upgrade to Fiat cars in exchange of their existing brand. Additionally, this scheme also offers customers road side assistance package at no cost for 50 months along with fi rst year insurance at a nominal cost of òne.

Campaign Launch Fiat India also launched a new advertising campaign to depict its bond with India. The campaign aims at forging deeper ties with the Indians at a grass root level. The multi-media campaign with a new television commercial seeks to bring vibrancy of festival seasons in India. “With the launch of this campaign, we are seeking to portray our commitment towards the Indian market and communicate that this campaign has been designed keeping in mind the emotions, sentiments and key values portraying our Indian connect,” said President and CEO, FIAT India, Rajeev Kapoor.

FIAL JV Fiat India Automobiles (FIAL) is an equal joint venture between Fiat Group Automobiles (Fiat) and Tata Motors formed in 1997. The company employs about 2,323 blue and white collar employees and is located at Ranjangaon in the Pune District of Maharashtra. The deﬁ nitive agreement of the JV was signed in October, 2007. The Ranjangaon facility, which is owned by FIAL, has capacity to manufacture two lakh cars and three lakh engines besides 300,000 parts and accessories. Currently, the JV manufactures Palio Stile, Linea and Grande Punto as well as 1.3 litre multijet diesel engines and 1.2 and 1.4 litre gasoline engine.

Tanvir Arfi, President, SPX Service Solutions (Global)

maintaining and repairing vehicles, works in close association with leading vehicle manufacturers across the world during the product development process. It develops diagnostic and special-

ty tools for the dealerships of the leading OEMs. Among its customers are some prestigious names like Ford, Nissan, Jaguar Land Rover, Renault, Honda, Harley Davidson, Maruti, Tata Motors and Mahindra and Mahindra among others. It is in dialogue with the country’s largest car manufacturer, Maruti, for its second generation diagnostic systems. It currently produces air conditioning repair systems, Robinair and other diagnostic equipment for the OEM. It also caters to the needs of aftermarket. Currently, the OEM business contributes 65 percent of its total vehicle service business worldwide and aftermarket contributes 35 percent. It is also planning to expand its footprint in the Indian aftermarket. Arﬁ said that the company is ready with recharging systems for

electric cars. SPX, which is closely associated with Chevy Volt and Nissan Leaf, is ready to support the OEMs in their electric car projects as and when they set foot in India. “Since Indian homes have AC current, it will be easier to develop infrastructure for recharging electric vehicles in India. Also, the structure of the four metros and the concentration of maximum number of the metros will help in the process,” he added. Talking further about the market for recharging systems, Arﬁ said that there would be three major categories of markets—residential, destination and public charging. While residential will be bulk and therefore have to be cheap, destination charging will be built-in shopping malls and other public places. There will be a small but crucial market for public charging funded by

the government or municipality, which will be wirelessly connected to each other. He added that the products are ready and will be introduced to the Indian market as and when the vehicle manufacturers enter the arena. In its research and development centres based in Chennai, Pune and New Delhi, the company is working on several interesting projects aimed at the Indian car market. “The globally available products cannot be brought to the Indian market without customisation. Here, we are trying to modify the globally popular products suited for India market to match the local requirements,” Managing Director, SPX Service Solutions India, Tony Sharma said. The company develops software solutions for diagnostic tools even for global projects.

Auto Monitor

1 - 15 October 2011

CORPORATE

Nabeel A Khan New Delhi

sahi India Glass, popularly known as AIS Glass Solutions, is mulling options to increase its production volume by at least 25 percent each year as the company envisages a growth of 15 percent in revenue in FY2012 compared to last year. The company, one of leading automobile glass manufacturers in India, is weighing the pressure on the proﬁt margins and is getting into lean manufacturing with the help of low cost automation. Towards this, it has invested about `30 crore during the last two years.

Boosting Capacity Expansion plans will not be through Greenﬁeld route, instead it is looking at ramping up capacity at its existing facility. Cu r rent l y t he c ompa ny has ma nufactur ing facilities for automotive glass at four locat ions —Bawa l

(Har yana), Chennai (Tamil Nadu), Roorkee (Uttarakhand) and Taloja (Maharashtra). All the locations have the required infrastructure including sufficient space for brownfield expansion. This allows AIS to plan its expansions in the shortest possible way rather than the normal cycle time, besides being cost effective. The glass manufacturer has installed robotics in the drilling procedure and also introduced other forms of automation at its facilities to help in rebound the dipping proﬁt margins. The company used to have a profit margin of 20 percent which slipped to 18 percent last year. However, with upgraded technology it hopes to restore the same proﬁt level soon. The productivity of the human resource has been going up by 10 percent every year.

Future Vision “For the next couple of years we will meet the demand growth by expanding capacities in these

Photograph: Dileep Prakash

AIS mulls measures to ease pressure on proﬁts

Arvind Singh, President, Asahi India Glass

The manufacturer of laminated windshields and tamper-proof glasses, is working on bringing more innovative products including introducing a glass that reduces the penetration of sunlight. This will enhance the fuel efficiency of the vehicle by means of reduced pressure on the air conditioning. AIS has developed a range of products with features such as water repellent glass, which allows the driver better visibility during rains, radio antenna printed on glass and more

locations. Our capacity expansion programme also ensures that we are continuously upgrading technology—whether it is for greater product range or for productivity enhancement,” President, Asahi India Glass, Arvind Singh told Auto Monitor. The manufacturer of laminated windshields and tamper-proof glasses, is working on bringing more innovative products including introducing a glass that reduces the penetration of sunlight. This will eventually enhance the fuel efﬁciency of the vehicle by means of reduced pressure on the air conditioning among other advantages.

Value Adds Another innovative endeavour is in-house development of manufacturing equipment and processes, which serve the purpose of lowering costs, decreasing lead times and processes while boosting competitive strength. It has developed a range of products that provide value added features such as water repellent glass, which allows the driver better visibility during rains, radio antenna printed on the glass rather than in the form

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of traditional antenna systems, rain sensors ﬁtted onto the glass, which automatically activates the windshield wiper system. AIS has clocked a turnover of `1,556 crore in the FY11 of which, `900 crore came from the automotive glass business. The company snapped around 18 percent of the total automotive business from the aftermarket and 70 percent from OE and rest from other earth moving equipment, metro coaches and exports. It may be noted that the company has recently supplied glasses to new metro coaches in Delhi. The glass-maker has witnessed stagnation in the passenger vehicle segment, while the commercial vehicle segment registered a growth of 20 percent in July-August compared to last year in the same period.

Expanding Horizons “The main reasons for the sinking profit margin and stagnation in PV segment are inflation in price of input material and cost of energy in term of electricity”, he added. Its customers include all the major car makers and in the commercial vehicles segment Volvo, Daimler and Tata Ace are among the major takers of its glasses. The glass-maker is continuously seeking expansion of aftermarket business by enhancing its presence in the value chain in a manner in which, it can meet customer demand at the individual level throughout the country. One significant way is by expanding its network such that its distribution footprint covers an increasing part of the vehicle population of the country. Exports contribute seven percent to its automotive business, which comes primarily from the European markets, in the aftermarket space. While this business is a fast expanding, the company also is evaluating other markets and segments for growth. AIS manufactures a wide range automotive safety glass, floatglass, architectural processed glass and glass products. It is transforming itself to a solutions provider by moving up the value chain of auto glass and architectural glass and providing design, products and services that make glass more versatile and user-friendly.

Auto Monitor

The passenger car segment fell by 1.26 percent during the April-August period this fiscal, while the utility vehicles grew by 8.7 percent and the multi-purpose vehicles grew by 21.06 percent in this fiscal. Toyota led the passenger car segment with a growth of around 625.97 percent from 4,112 units to touch 29,852 units this fiscal, as compared to the previous period. BMW notched up highest percentage growth in UV segment to touch 1,766 units compared to 125 units in the same period in the previous year, marking a growth of 1,312.8 percent. Passenger Cars 2010-11

2011-12

BMW

1,862

2,267

Fiat

10,213

7,874

Ford

38,279

35,136

35,124

35,255

Two-Wheelers

Commercial Vehicles

Passenger Vehicles

OEMs

1 - 15 October 2011

ANALYSIS

21.75%

The overall commercial vehicles segment registered a growth of 17.8 percent in April-August, 2011 as compared to the same period last fiscal to touch 301,267 units. M&HCVs sales grew by 7.07 percent to touch129,531 units compared to 120,977 units in the same period in the previous year. The LCV segment grew by 27.44 percent to touch 171,736 units in this fiscal, compared to 134,762 units in the same period last fiscal. Three-wheeler sales were relatively flat at 199,721 units in April-August period compared to 200,258 units in same period last year. Passenger carriers fell by 4.17 percent in April-August 2011 and goods carriers registered growth of 17 percent. VECV-Eicher registered the highest growth in the LCV segment to touch 4,109 units. Mahindra Navistar notched up a growth of 162.86 percent to touch 828 units this fiscal as compared to 315 units in the same period last fiscal in M&HCV.

-22.90%

LCVs (PC+GC) -8.21%

OEMs 0.37%

ALL

2010-11

2011-12

326

193

8,245

9,559

-40.80%

-64.70% HM

3,725

1,315

HSCI

22,224

19,299

HMIL

140,430

144,859

2,869

7,147

Force

-13.16%

MR MSIL

360,839

Merc

2,120

HM 3.15%

13.30%

2,402

227.05% 2,233

7,303

Renault

673

7,037

11,288

109,514

81,851

Skoda

60.41% -25.26%

Tata

37,580

48,081

MNAL

4,542

4,403

Piaggio

3,885

5,187

Swaraj

1,621

1,798

Tata

75,479

98,316

VECV - Eicher

2,882

4,109

Total

134,762

171,736

27.94%

149.11%

324,211 -10.15%

Nissan

202

M&M

15.94% -55.45%

-3.06% 33.51%

Scooter/Scooterettees

10.92%

OEMs

4,112

29,852

Audi

830

1,428

Total

11,442

752,853

42.57%

2011-12 -100.00%

BAL

HML

123,397

160,482

HMSI

376,603

413,483

M&M 2W

54,202

60,389

30.05%

27.44%

72.05%

SMIL

83,884

112,654

TVS

169,819

204,304

Total

807,932

951,312

9.79% 11.41% 34.30%

M&HCVs (PC+GC) 172.66%

31,198

743,358

2010-11

30.26%

625.97% TKM

Domestic two-wheelers sales witnessed a growth of 15.94 percent in this fiscal registering 5,357,851 units against 4,621,053 units during the same period in the previous fiscal. Mopeds, motorcycles and scooters grew by 13.64 percent, 15.71 percent and 17.75 percent respectively. The motorcycle sales grew to 4,091,116 units in April-August period as compared to 3,535,555 units in corresponding period in the previous fiscal. In the Motorcycles segment, Suzuki Motorcycles’ sales were up by 68.72 percent in April-August period this fiscal, while Bajaj Auto’s sales grew by around 8.7 percent to touch 1,052,060 units in April-August compared to 967,826 units in same period last fiscal. In the Scooter segment, the sales of Hero Motors grew by 30.05 percent while TVS Motor sales grew by 20.31 percent. Hero MotoCorp reported its best sales for August at 491,120 units, registering a jump of 18.87 percent over the same month last year. Bajaj Auto witnessed 8.11 percent growth in its August sales at 226,559 units against the same month in the previous fiscal. TVS Motor Company reported total domestic two-wheeler sales of 163,705 units in August 2011 registering a growth of 10.55 percent. Suzuki Motorcycles India registered the highest growth in domestic two-wheelers sales at around 35.24 percent to touch 26,148 units in August this year.

-1.26%

OEMs

2010-11

2011-12

ALL

31,861

29,487

AMW

2,318

4,120

-7.45%

20.31% 17.75%

77.74%

UV OEMs

2010-11

JCBL

2011-12 1312.80%

BMW Force

125 1,261

1,766

M&M

11.82%

1,410

Motorcycles/StepThroughs

-40.96%

Daimler*

OEMs - 0.00%

BAL

2010-11

2011-12

967,826

Ford

1,243

1,138

-8.45% 20.19%

8,089

9,722

1,016

923

-9.15%

HSCI

219

134

-38.81%

HMIL

621

ICML

340

166

M&M

63,930

74,043

-51.18%

MSIL

3,541

3,434

Merc

144

354

Nissan

201

101

Skoda

753

15,871

14,496

15.82% -3.02%

MNAL

315

828

Swaraj

2,890

3,049

5.50%

HML

Tata

72,262

78,080

8.05%

HMSI

278,717

285,803

VECV - Eicher

10,690

13,408

IYM

101,203

139,994

HDMC

25.43% -44.85%

VECV - Volvo

388

214

Volvo Buses

170

295

Total

120,977

129,531

101

1,908,113

2,299,514

M&M 2W 73.53%

8.70%

1,052,060

162.86%

20.51% 2.54% 38.33% -_

20,169

30,299

SMIL

13,795

23,275

TVS

245,732

260,070

50.23% 68.72%

7.07%

145.83%

Total 3,535,555

4,091,116

5.83% 15.71%

-49.75%

3-Wheelers (PC+GC) Tata TKM Audi

VW Total

27,316 423

24,604

123,724

2010-11

Atul

7,039

9,768

Bajaj

78,991

77,621

8.70%

134,493

120

- 990.91%

M&M

9010

66,628

Tata

20,763

23,592

Total

82,069

99,350

Mopeds/Electric OEMs

2010-11

2011-12 13.64%

-1.73 TVS

-97.01% Force

134

M&M

22,660

25,847

Piaggio

76,131

75,506

14.06%

277,566

Electrotherm*

315,423

- 0.00% 13.64%

2011-12

61,295

38.77%

33.33%

Force

Maruti

2011-12

94.80%

MPV OEMs

2010-11

-9.93%

824

OEMs

-8.66%

Scooters

5,070

6,130

TVS

10,233

4,845

Total

200,258

199,721

-0.82%

Total

277,566

315,423

20.91% -52.65%

* Data not available since August 2008 onwards

8.70% 13.63% 21.06%

-0.27%

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1 - 15 October 2011

Tenneco develops lightweight shock absorbers Shambhavi Anand New Delhi

enneco Automotive India, the Indian subsidiary of the US based manufacturer of ride control components and exhaust systems, is working on developing light weight shock absorbers and struts using alternate material for the next generation of vehicles in its Indian engineering centres. “We are working on several innovative and futuristic products on ride control as well as emission control side. These advance products are meant for the next generation of vehicles, which will hit the roads after 2015,” Managing Director, Tenneco Automotive India, Abhijit Mukherjee told Auto Monitor. The shocks will have hollow piston rods with the usage of

“different material” like plastic. This will significantly reduce the weight of the vehicle in which it is used. Though it is not being developed for any specific customer, the company is hopeful that once done, it will fi nd numerous takers. Tenneco is also working on developing low cost electronically controlled struts. “Electronically controlled shocks require Electronic Control Units (ECU), which is an added cost. We are trying to develop a product where the electronic chip is inside an individual strut so that the control is within thereby eliminating the need for a separate unit. This will help in reducing complexity of the system as well as cost,” Mukherjee explained. This technology is aimed at the vehicles of B and C segment and has internal valve technology which results in

Abhijit Mukherjee, Managing Director, Tenneco Automotive India

lower power usage while offering fast damping adjustments. The Indian car makers like Maruti have shown interest in these low cost electronically controlled struts which are being developed at the Indian engineering centres in collaboration with the centres in Belgium and America. On the emission control side, the company is working on advanced products keeping in mind the emission norms expected to be implemented in the country. While the main engineering centre for ride control products is in Hosur, Tenneco is building a new engineering centre for emission control in its Chakan facility. The Indian centres are supported and funded through the main global centres in the US, Europe, China and Japan. “While currently there are no customers for any of these

Tenneco is setting up a new plant in Chakan to cater to the needs of Volkswagen. The construction of the plant has already commenced and will be fully operational by the early next year

technologies in India, when the demand comes, Tenneco is ready with these technologies and will be able to rapidly respond to the OEM requirements as they try to give more value for money by increasing the number of features that are on offer. The same thing happened with ABS where initially the technology was confi ned only to high-end car segments but has now spread to all segments as a standard offering. In the OE business, we not only work for the present but also for future,” Mukherjee added. While ride control and emission control products contribute equally to the revenue of the company globally, in India ride control form a major share of 75 percent, rest being emission control. It currently supplies its products to the passenger vehicle and commercial vehicle industry. Also, PV segment forms the major share of its business. Tenneco is setting up a new plant in Chakan to cater to the needs of its global customer Volkswagen. The construction of the plant has already commenced and will be fully operational by the fi rst quarter of the next calendar year. The company already has plants in Hosur, Pune, Bawal and Chennai which supply to its customers like Maruti Suzuki, Renault, Tata Motors, Mahindra, Ford, General Motors, Volkswagen, Nissan, Toyota, Daimler and the JV between Ashok Leyland and Nissan. It also has a small facility in Pondicherry for powdered metal components, which are precision components required for ride control products. The company which has invested 20 million dollars in its Indian operations in the last three years plans to invest the same amount in the next three to five years. It has sales revenue of six billion dollars.

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CORPORATE

1 - 15 October 2011

SKF tech centre groomed as innovation hub Abhishek Parekh Mumbai

KF India is looking to play a more proactive role in development of its two-wheelers business in India. The company’s technical centre in Bangalore is already beginning to play a key role for various OEMs in terms of introduction and adoption of latest technology from SKF’s global portfolio as well as locally developed parts and systems. “We are looking to combine push and pull strategies for market development in the twowheeler business. On one hand, we are pushing the cutting edge technology of mainly product digitisation, while on the other hand we are looking to customise products for customers in order to generate demand for ourselves,” stated Director, Two-

Wheelers Business Unit, Global, SKF India, Harsha Kadam. The key challenge for any bearing manufacturer currently, is to have better performance from existing products and lower the manufacturing costs. The company already supplies clutch lifters, steering column bearings, valve seals, shock absorber seals and the one-way clutch, the last being the key component for electric start motorcycles and scooters. It provides most of these products to the manufacturers and these products are considered to be within the bearings ‘ecosystem’. Kadam further elaborated that several friction causing mechanical systems in a two-wheeler can be eliminated with more ‘digitised’ components in the two-wheelers and its application development centre is working towards meeting this objective.

SKF India’s bearings facility

Harsha Kadam, Director, TwoWheelers Business, Global, SKF India

He added that the company is looking to play a more proactive role in the rapidly changing market scenario and emerging areas including electric vehicles. The technical centre is evolving as a ‘Centre of Excellence’ by offering consulting services to many twowheeler OEMs in domestic and international markets as opposed to being just a product development centre for the SKF Group. There is likely to be a major offtake in OEM demand as new additions in capacities is likely to come on stream by early 2013. The domestic market in India for two-wheelers is likely to cross 17 million units by 2013-14 and go even higher to around 20 million units per annum by 2020. There are several challenges for the company in order to maintain its market leadership position. The company has kept new recruitment to the bare minimum and is looking for innovative sourcing strategies. “We look to develop our suppliers or vendors and help them achieve higher quality and delivery standards. We would not change our suppliers purely on basis of cost differentials,” said Kadam. The company has been increasingly outsourcing noncore products and services so as to enable its emergence as a systems supplier to the OEMs. But critical technology and processes continues to be done in-house including grinding operation, which is a core process for any bearings manufacturer. “Newer customers for twowheelers are more likely to come from rural areas and the vehicles for these markets need to be basic yet robust. That’s the upcoming challenge for most component suppliers to the two-wheeler manufacturers,” said Kadam. SKF India’s two wheeler division is already gearing up to match the growing demand from two-wheeler manufacturers and has been investing in increasing its capacities across all three facilities in Bangalore, Pune and Haridwar.

Auto Monitor

1 - 15 October 2011

CORPORATE

Eco-friendly booths open channels for Madhus Bhargav TS Bangalore

he Bangalore-based garage equipment trading company, Madhus Garage Equipments has recently started importing high performance and cost competitive paint booths from the company, Guangzhou Guangli, based in China. The company sees massive opportunities in the eco-friendly paint booths. It is also planning to expand its network in order to cater to the rising demand in this segment. According to the Managing Director of the company, Ravi BM, the market in India is looking for reasonably priced and good quality equipment. “The products that we bring from Guangli is about 40 percent cheaper when compared to the same product available in India.

Paint Booth

Moreover, the Chinese products are more efﬁcient. This new paint booth is fabricated with rock wool internally and we use the two stage burners and pow-

erful fans to circulate the air evenly,” he said. The company at present imports and sells a wide range of products that include wheel

aligners, tyre changer, brake tester, gas analysers, body shop equipment and wheel balancers. Madhus Garage represents several multinational manu-

Ravi BM, MD, Madhus Garage Equipments

facturers including Hunter, Car-O-Liner, Ravaglioli, Telwin, Romess and Texa.

Bridging Technology Gaps Ravi said, “In the last 24 years we have been importing the latest technologies that are used in countries like US, Europe and Japan in to this country. With this, we can say that the equipment used in our workshops in India is at par with international standards. So far, latest technologies have been coming in every two to three years and we start bringing in new equipment as the latest technology is released in the international market.” The big challenge in the industry is availability of service and spare parts. To address these issues, the company has 65 trained service engineers across the country. And for immediate part requirements, it has a centralised spare parts distribution centre, which reaches the customer within 24 hours. According to him, there is a huge potential in the truck market in India. Earlier there was no particular equipment used in the truck segment as it had always been dominated by the roadside garages using regular tools. However, today a lot of automation has come into the picture and the service is done easily by using pneumatic tools. Thus these kind of specialised tools and equipment have really made the truck segment move in a different direction. As a result, the truck market will grow tremendously in another ﬁve years, he said. In the garage equipment business, there are three main areas—the body shop equipment, workshop equipment and wheel service equipment. In the three areas, Madhus Garage plays a vital role and exploring more possibilities. “For our new AC equipment, we have received many enquiries from major OEMs like MercedesBenz, BMW and Audi to supply to their service centres and we will be supplying the equipment next year. Thus we have to gear ourselves to meet these orders, which will be new generation vehicles,” Ravi added. Apart from OEMs, the company sees individual garages as a major precursor to this growth. “The smaller players like dealers and garages, which we call the entry level market holds immense potential in the paint and reﬁ nishing segment,” he said. While the premium OEM customers choose expensive paint booths, the smaller players in the aftermarket prefer more cost effective products. These entry level players will be the company’s main focus in the near future, he said.

1 - 15 October 2011

Auto Monitor

CORPORATE

Flywheel to form partnership for alloy wheels business Abhishek Parekh Mumbai

lywheel Ring Gears is evaluating a joint venture or technological partnership for its alloy wheels business. It is hoping to acquire scale and current technology through a suitable partnership and is already in discussion with few players for the purpose. “Though we gained quality customers for wheels business through acquisition of the business from Hindalco, we would need technical and operational partnership to scale up and reach the next level in this business,” said Chief Executive Ofﬁcer, Flywheel Ring Gears, BM Khairnar. The acquisition included the operations and brand name. “It is unlikely that the automotive sector growth will exceed ten percent in the current ﬁscal. Rising interest rates and other factors are already beginning to hit vehicle sales,” said Khairnar. He added that the small commercial vehicle segment is likely to see robust growth in the coming years and the company is gearing up to have a larger share in the segment. He also added that the passenger car market is likely to be led by compact cars powered by small diesel engines. The

Nissan brings performance drive programme to India Our Bureau Chennai

acing tracks are the best place for a person to experience the true capacity of any sports car and test its performance in its totality in ways that cannot otherwise be tested on normal roads, said the international drifting champion and Guinness World Record holder Terry Grant in recently held 14th JK Tyre National Racing Championship in Chennai. Nissan Motor India has joined hands with Terry Grant to introduce Performance Drive Programme in India in the sports car segment using Nissan 370Z. The company has initiated the experimental marketing programme to tap the growing potential of sports cars in India and is planning to introduce affordable sports cars across affluent segments. During the event, Terry preformed some stunts with the Nissan 370Z, and also provided a test drive to potential customers. “Nissan 370Z is a smart choice for customers considering its high performance as compared to other competitors and yet affordable” he added. It is the fi rst of a three-programme series, which Nissan has brought to India to establish performance driving here, and to encourage local drifting talents. According to Chief Executive Officer, Hover Automotive India, Dinesh Jain, the performance show has roped in Terry Grant to reiterate that the 370Z is one of the best choices of sports cars among its customers and buyers.

BM Khairnar, Chief Executive Officer, Flywheel Ring Gears

company is looking to focus on small commercial vehicles and compact diesel segment in the coming years. The company also supplies fuel tank assemblies for Mahindra Navistar and Ma h i nd ra & Ma h i nd ra’s

Ma x x imo. Precision Auto Industries, an associate company, manufactures deep drawn sheet metal parts like fuels tanks, transmission cover body and suspension parts. The company had acquired the aluminium alloy wheels business division of Hindalco. The business already has a sizeable number of customers and Khairnar is looking to invest around `15 to 20 crore over the next 12 to 16 months for de-bottlenecking and capacity expansion in order to service the growing demand. Additionally, he is also looking to invest around `ﬁve to six crore in the existing ﬂywheel ring gears business as a part of annual capital expenditure programme. The

company will touch revenues of `100 crore in the current ﬁ scal and is looking to grow by around 20 percent over the next couple of years on a consolidated basis. “The wheels business was very small for Hindalco, but it will certainly help us in terms of achieving our growth objectives,” said Khairnar. He added that improving road infrastructure in the country is likely to create demand for alloy wheels, as such wheels are preferable for vehicles to achieve high speeds in better road conditions. However, he also acknowledges that major part of the market would continue to be serviced by steel wheel manufacturers due to lower cost and sturdiness.

One of the major challenges that the company in anticipating is attracting and retaining quality manpower on the shopfloor and in the management grade. What’s more, raw material price rise is another major area as parts suppliers have been facing difficulty in getting sufficient price increases from OEMs. In recent years, the company has been focussing on raising productivity and looking for better process technology and solutions for reduction in costs. The company manufactures a range of starter ring gears for stationary engines, cars, trucks, buses, tractors, power generators, tillers, racing cars and marine applications.

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Auto Monitor

1 - 15 October 2011

STUDY

Indian PV Sector: Consumer sentiment 29%

50%

38%

37% 34%

23% 30% 25% 21%

29% 22%

225,000

40% 14%

200,000

30% 4% -9% -6%

175,000

20% 10%

Domestic Passenger Vehicle Sales

Jul-11

Aug-11

Jun-11

Apr-11

May-11

Mar-11

-20% Jan-11

-10%

100,000 Feb-11

125,000 Dec-10

150,000

Oct-10

Within the industry, volumes in the cars segment declined by 1.3 percent, while UVs and Multi Purpose Vehicles (MPVs) reported a growth of 8.1 percent and 21 percent respectively. Successive rise in interest rates on back of RBI’s monetary tightening stance coupled with rise in fuel prices are key factors affecting consumer sentiment, leading deferment of purchases. Among segments, the small car segment, which account for over 80 percent of the volumes have been impacted the most, while mid-size segment owing to

250,000

Nov-10

Momentum Losing Steam

Trend in Domestic Passenger Vehicle Sales 275,000

Sep-10

ate single digit growth in FY12. Export volumes are also likely to remain subdued considering the weak demand from European region. We maintain our longterm ﬁve year CAGR growth rate at ~11 percent.

Jul-10

rates and increase in fuel prices. As a broader trend, inventory levels have increased at dealerships from 20-30 days (on steady state basis) to as high as 50-60 days (for some models). With increasing petrol prices, demand for diesel-backed cars has risen with hot-selling models having long waiting periods. The beneﬁts of diesel vehicles however could reduce in the event of any increase in excise duty speciﬁc for diesel vehicles and/or implementation of dual pricing of diesel (personal and commercial use). We believe the growth momentum to pick up from the start of festive season, which will also be coupled with launch of certain new models across segments. Overall, we expect the growth momentum to slowdown during the current year and expect industry to record low to moder-

Aug-10

ince the beginning of the current ﬁscal, the industry has witnessed slowdown in demand partly contributed by rising interest rates and fuel prices, cumulatively impacting consumer sentiment. During the current ﬁscal, the domestic market has grown by only 1.8 percent on YoY basis. Within segments, small cars, which accounts for almost 80 percent of total volumes has been impacted the most, witnessing a decline of 5.6 percent during the same period. Our channel check suggests that since April 2011, footfalls at dealerships have reduced and so have the conversion ratios (from enquiries to actual purchase). Much of the slowdown is on account of weakening consumer sentiment amid rising interest

Jun-10

Subrata Ray

YoY Growth (%)

Source: SIAM, ICRA’s Estimates

new product launches has been somewhat insulated from the slowdown so far. The premium and luxury end segment of both cars and UVs also continue to post steady growth due to lowbase effect and by virtue of being relatively inelastic to rise in ownership cost. While we believe, incumbents will continue to derive competi-

tive advantage on back of their strengths in low-cost manufacturing (especially in the small car segment), established vendor base strong brand identity and wide-spread distribution & servicing reach, such an advantage is likely to diminish in the long-run as new players with global experience gain brand recognition and expand their product offerings and network. Mid-size segment likely to see many launches including refurbishment in the sub 4,000 mm category. Apart from host of launches expected in the near term, another trend that is being witnessed by the industry is the introduction of refurbished models of existing platforms to qualify for lower excise duty beneﬁt offered on car that are less than 4,000 mm in length (with engine size less than 1.2 litre on petrol & 1.5 litre on diesel cars). We interacted with various PV dealers and auto ancillaries to get a view on the developing trends in the passenger vehicle industry and accordingly build our near-term outlook on PV sector. The consensus view suggests that the industry which is currently experiencing slowdown is expected to recover in H2 FY12, while pressure on margins and competitive intensity on OEMs is expected to continue.

Interaction with PV Dealers:

Consumer sentiment has turned negative over the past few months largely driven by rising interest rates (about 150200 basis point increase in PV ﬁ nancing rates in last three months) and hike in fuel price. Deferment of purchase by customers in wait for new launches and supply bottlenecks in some of the top selling models in light of earthquake in Japan and strike at Maruti are also some of the reasons impacting growth. While there has been some moderation in enquiry levels, the decline in conversion ratio has been rather signiﬁcant. Growth in FY12 is expected to be back-ended and OEMs are hopeful of the current demand trend reversing over the next quarter. Inventory levels at dealerships have gone up from an average 20-30 days to as high as 50-60 days. Consequently many dealers reduced their offtakes from OEMs in June and focused on inventory liquidation, resulting in fall in OEM volume sales. Discounts offered by OEMs have risen sharply; were at an all time high in May and June (even higher than that in March), but sales continue to remain lacklustre and sales in July also expected to remain weak. Prohibitive real estate cost and lack of vacant retail space at prominent locations has prevented coming up of new

1 - 15 October 2011

Auto Monitor

CORPORATE

weakens on rising interest and fuel costs Sensitivity Analysis

Interest Rates

Monthly Total Expenditure on Mid-Size Car (EMI + Fuel Expenses) Petrol Prices (Rs./Litre) 52.6 52.9 55.9 58.4 63.4 10.0% 15,218 15,244 15,491 15,699 16,116 11.0% 15,471 15,497 15,744 15,952 16,369 12.0% 15,727 15,753 16,000 16,208 16,625 13.0% 15,987 16,013 16,260 16,468 16,885 14.0% 16,249 16,275 16,522 16,730 17,147

Source: ICRA Estimates; Assumptions – Loan value – 5.1 lacs; Tenor – 5 Years

automobile dealerships. As a result, there are quite a few instances of dealer poaching by new market entrants. In a bid to lure interested parties and ensure dealer viability given the low initial volumes, newly entered foreign OEMs are offering higher margin to dealers. Moreover, these new OEMs are also providing better credit terms to their dealerships.

Interaction with auto component suppliers:

Current slowdown has not resulted in any change in production schedules by OEMs so far. The market however perceives some moderation in the volume estimates of car manufacturers. Slowdown is likely to be temporary with growth expected to pick from festive season. OEMs as well as component suppliers are going ahead with their budgeted capex plans and there is no deferment/moderation in the same. OEMs continue to focus on cost rationalization through process optimization, localization, material change, weight reduction and yield improvement on an ongoing basis and cost cutting targets are similar to those in last year. Localisation for key components continues to remain the key focus areas for most OEMs New small car launches by foreign OEMs have met with initial success and have eaten into the market share of incumbents— combined market share of top three players in this segment has declined from 91.8 percent in FY10 to 85.8 percent in FY11 and 82.8percent in YTD FY12. Also from July onwards, Maruti stopped production of Swift which has impacted volumes in July. Competitive intensity in this segment is expected to increase further with the recent launch of Toyota Etios Liva and Chevrolet Beat Diesel, along with host of new launches slated over the short term—Maruti Cervo (Q2 2011), Honda Brio ( Q3 2011) Renault Small Car (early 2012), Fiat Small Car (early 2012). Small car segment is also witnessing polarization and widening of price range with growth in sub 1000cc cars on one end (Nano, Alto, upcoming Cervo etc) and relatively higher end and feature packed offerings on the other (Fabia, Polo, i20)

Mid-Size Segment Performed Better Contrary to the weak performance of the small car segment, the mid-size segment has been relatively insulated, with volumes registering a 22percent growth in YTD FY12 over the same period in the last ﬁscal. Multiple launches and competitive pricing have been some of the factors driving growth in this segment. The mid-size segment accounts for ~20percent of the domestic car

sales and has been growing at a fast pace driven by rising disposable income levels in the middle income group population and new model launches. With favourable market response for some of the new launches, Toyota, Volkswagen and Hyundai gained market share from incumbents in the mid-segment. W hile Maruti retained its leading position, its market share was affected by

production disruption during Q1 FY12, impacting the sales of Swift Dzire, the largest selling model in this segment. Apart from weak demand of Indigo family, sharp decline in Tata Motors market share in this segment also reﬂects the impact of shift of Indigo CS to the compact segment, which was earlier classiﬁed under mid-size segment. Apart from macro-economic headwinds, production cuts at Toyota’s plant due to shortage of components from Japan also impacted volumes to an extent. The premium-end of the UV segment bucked the trend and continued to witness steady growth (up 22.6 percent on YoY basis) on back of low-base and relatively lower impact of weakening consumer sentiment on rising interest rates and fuel price hike.

We expect the UV segment to largely grow in line with the overall passenger vehicle market with growth being stronger in the lower and upper-end of the segment. A sizeable part of the UV market also caters to the people mover segment, which has also been one of the growth drivers striving on demand from growing IT/ITES sector. In this segment, the industry is witnessing an increasing trend preference towards smaller MUVs such as Maruti’s Eeco.

Export Volume To Moderate During YTD FY12, India’s export volumes grew by 22.5percent on YoY basis. Growth was primarily driven by scale up in Nissan’ Micra and Ford’s Figo overseas sales. Both Maruti Suzuki and Hyundai, leading players in the export segment witnessed a decline during the same period.

Overall, small cars continue to dominate the export volumes with a share of over 90percent. Europe is the major export destination for India. With weak economic recovery in most European countries and discontinuation of scrappage incentive schemes, the demand from European region has been gradually slowing down. While we expect export volumes to remain rather subdued in the near term given the macro-economic headwinds in export markets, we believe long-term potential remains strong given India’s capabilities in low-cost manufacturing, favourable Government policies, and improving component supply base. (The author is Senior Group VP, Co-head Corporate Sector Ratings, ICRA. Views expressed are personal.)

Auto Monitor

EVENT

1 - 15 October 2011

64th Internationale Automobil Ausstellung

Frankfurt Motor Show

Glimpses of

Source: 64th Internationale Automobil Ausstellung website

15-25 September, 2011

Auto Monitor

1 - 15 October 2011

CORPORATE

Akmal Rahman B Chennai

he UNIDO-AIEMA auto cluster unit has recently formed an SPV (Special Purpose Vehicle) to avail the best practices of Lean Manufacturing Scheme (LMS) in Chennai. The Development Commissioner of Micro Small and Medium Enterprises (DCMSME) has introduced the LMS, in association with National Productivity Council (NPC) as a monitoring body, to enhance the manufacturing competitiveness in the industrial sector. The auto cluster is organising several programmes for SMEs to help them in sharing expertise and incorporating best practices in industrial development and approaches for the common problems faced by companies.

As a part of its cluster programme, UNIDO has forged some of its member companies together, to sustain its efforts towards lean manufacturing. Coordinator of the auto cluster unit, V Ramesh said, “We suggested LMS to our members, and as a result, around ten companies came forward and joined this scheme forming a cluster called Ambattur Industrial Estate Metal Work (AIEMW) and implemented the scheme successfully.” T he Di rector, MSME Development Institute, S Sivagnanam, said that the scheme assists companies in battling the global economic recession by applying lean manufacturing techniques in identifying and eliminating waste in the manufacturing processes. It has a set of techniques that has evolved over a period of time

Photograph: Bhargav TS

LMS for Chennai auto cluster productivity

(L-R) KR Jayashankar, GM, Globe Components, V Ramesh, Cluster Co-ordinator, UNIDO-AIEMA Auto Cluster, KC Raghavan, Lean Manufacturing Consultant

and are based on various minor to major breakthroughs that help in reducing cost and increasing productivity. According to him, there are about 13 million MSME units in the country, which employ over 42 million people and contribute over 45 percent to the industrial production and 40

An example of the results after the implementation of LMS

percent to the total exports. The scheme involves appointment of Lean Manufacturing Consultants (LMC) to work with selected MSME’s in the chosen clusters with ﬁ nancial support by the government. A maximum of 80 percent of the project cost for each cluster is borne by the government. The assist-

ance is limited to the ﬁ rst year of the scheme, which covers 100 mini-clusters (approximately 10 MSMEs per cluster), spread all over the country. While the scheme is implemented under the overall supervision, control and direction of MSME Commissioner, NPC functions as an outsourced unit for ’National Monitoring and Implementing Unit (NMIU)’, which is responsible for facilitating the implementation and monitoring of the scheme. Director and Head of NPC, S Shivakumar said that NMIU offers applications from lean manufacturing consultants to take part in the scheme. It is responsible for getting the scheme implemented in the member units of the SPV. Based on the eligibility criterion of these consultants, NMIU prepares a list of empanelled consultants to guide the units for accomplishment of the scheme. It also monitors the lean interventions being undertaken by the consultants. Some of the lean manufacturing techniques practiced are 5S, visual control, standard operating procedures, just in time, kanban, cellular layout, value stream mapping, poka-yoke or mistake prooﬁ ng, single minutes exchange of dies or quick changeover, kaizen blitz or rapid improvement process and Total Productive Maintenance. Management consultant and facilitator for AIEMW cluster, KC Raghavan, said that the companies that had implemented the scheme have progressed in productivity, quality, cost, delivery, safety, less utility of energy and materials. It is also focusing on water conception and pollution control. According to him, the major problems in most of the companies are awareness about managing inventory, rejections, and wastage of coolant oil. AIEMW cluster member and Managing Partner of MOC Dies and Moulds, D Gobianand, said that after the implementation of LMS, the company has reclaimed the scrap and space by identifying the wastage of raw materials. It has started working in an organised way and has seen huge reduction in manufacturing time and drop in rejections up to 40 percent. He also said that the scheme would help the company to increase it turnover by 20 percent this year. According to Sivagnanam, the ever-changing globalised environment has been posing challenges of competitiveness and survival to all the constituents of the economy. It is also noticed that the MSME units are so engaged in the day-to-day management issues that they don’t have time and resources to dedicate for a strategic understanding of the need and acquiring means of various techniques, which would help them in enhancing their productivity.

Auto Monitor

1 - 15 October 2011

GLOBAL WATCH TECHNOLOGY

Fiat downgraded by Moody’s F

iat was downgraded by Moody’s Investors Service by one step with a negative outlook on concern the combination with Chrysler Group will leave the Italian carmaker responsible for the American automaker’s debt. Fiat was lowered to Ba2, two notches below investment grade, from Ba1 because the integration of the carmakers “could result in the two companies having to support each other in the event of ﬁ nancial difﬁ culty,” Moody’s said. Debt of about Euro 8.3 billion ($11.3 billion) is affected by the downgrade, the rating company said. Fiat declined to comment. Moody’s also cited Fiat’s business risks, including its “relatively infrequent model renewal rate, which is constraining the group’s competitive position” in Europe,

and increased competition from rivals in Brazil. Chief Executive Officer, Sergio Marchionne, who runs both Fiat and Chrysler, is struggling to boost European sales as Fiat posts losses in its biggest market and continues to lose ground to competitors. Fiat’s European market share through August shrank to 7.3 percent from 8.2 percent a year earlier as deliveries plunged 13 percent, according to statistics from the European Automobile Manufacturers’ Association. Marchionne said that the group “has enough liquidity to weather the storm.” The CEO said that the Italian carmaker won’t risk a credit-rating downgrade to gain full ownership of the American carmaker. Chrysler is rated by Moody’s three steps lower than Fiat.

Fiat, including Chrysler, expects to have as much as Euro 5.5 billion of net industrial debt at the end of the year and about Euro 18 billion of cash. Group debt was Euro 3.4 billion at the end June, of which Euro 979 million was for Fiat, according to a recent presentation posted on its website. The Italian carmaker began consolidating Chrysler’s results in June. “Moody’s considers Fiat’s liquidity profile to be good, excluding Chrysler and the unknown amount of cash outﬂow that would be involved if Fiat were to exercise its option” to buy the remaining stake owned by United Auto Workers union’s retiree health-care trust. Fiat aims to recover market share in the second half with new models such as the Freemont, a European version of the Dodge

Chief Executive Officer, Sergio Marchionne, Fiat and Chrysler

Journey, and the subcompact Lancia Y and Fiat Panda, which was shown last week at the Frankfurt Motor Show. The Italian carmaker may delay the market entry of new products because of the crisis,

Marchionne said last week. Fiat postponed some Alfa Romeo models, including a sport-utility vehicle, by one year to 2013, delaying the brand’s return to North America. Alfa abandoned the US in 1995. Marchionne ruled out any share sale for the time being for Chrysler or luxury brand Ferrari because of the market uncertainty. There’s no “urgency” to merge Fiat and Chrysler, Marchionne said. Fiat owns 53.5 percent of the American automaker and expects to get 58.5 percent by the end of the year. Fiat was placed under review for a possible downgrade by Moody’s and Fitch Ratings in April after the carmaker announced plans to raise its Chrysler stake. Standard & Poor’s lowered its long-term corporate credit rating on the carmaker to BB in February and confi rmed its “negative outlook.” All of Fiat’s ratings are below investment grade. “What happens industrially and what happens on the stock market are separate issues. They are totally dissociated,” Marchionne said. Marchionne said he was reviewing volumes and the timing of new products because of the euro zone crisis, adding 2011 and 2012 would be difficult years for the European car market unless confidence in the system was restored. Recently, Marchionne stated he was not considering delaying investments. “To the best of my knowledge, I don’t think we are delaying anything,” he said. Talking about negotiations with the United Auto Workers (UAW) union over a labour deal with Chrysler, Marchionne said he was confident of reaching an agreement with the union but a contract would not duplicate that between UAW and GM. After seven weeks of negotiations, GM and UAW agreed last week on a proposed fouryear contract that would create new US factory jobs and include profit-sharing bonuses. The contract, which must be ratified by rank-and-fi le workers, would be the fi rst since 2009, when GM and Chrysler emerged from a government-fi nanced bankruptcy restructuring. Talking about Fiat Industrial, Marchionne said he expected the truck market to recover faster than the car sector. Fiat Industrial raised its 2011 targets after the truck and heavy equipment maker beat secondquarter profit forecasts and said it could boost the goals again in the third quarter. The company, which broke off from Fiat at the start of the year, is targeting more than Euro 1.5 billion in trading profit and confi rmed Euro 24 billion of revenues.

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1 - 15 October 2011

GLOBAL WATCH

Auto Monitor

Volvo plans to shift to smaller engines by 2020

olvo will stop making the biggest engines in its lineup in the next 10 years to help it meet tougher emissions rules in Europe, the US and China. “Before the end of the decade, all Volvo models will have engines with no more than four cylinders,” Volvo R&D Head, Peter Mertens said. Starting in 2013, the new family of three and four cylinder gasoline and diesel engines will replace the Swedish carmaker’s five and six cylinder gasoline engines as well as its five cylinder diesel. Mertens said the fi rst application of the VEA (short for Volvo Environmental Architecture) engine will most likely appear in one of Volvo’s existing models. “We will develop four-cylinder engines with higher performance than today’s six cylinder units and lower fuel consumption than the current four cylinder generation,” Mertens said. The VEA family will include four engines: 1.5-litre three-cylinder gasoline direct injection and diesel engines as well as two litre fourcylinder GDI and diesel engines. All will be based on a 500 cc cylinder displacement. Volvo says the new engines are up to 90 kg lighter than its current units and that the new powerplants improve fuel economy by up to 35 percent. The new VEA engines are a crucial element in Volvo’s plan to more than double annual sales to 800,000 cars by 2020. The Swedish automaker plans to invest $11 billion over the next five years to tap demand in markets including China. Volvo Cars is looking to build a plant in North America, CEO, Stefan Jacoby stated. “One weakness of Volvo Cars is the exposure to the US dollar, so we are investigating an increase in our sourcing in North America” to balance currency movements, Jacoby told reporters at the Frankfurt auto show. “The utmost solution would be to have a North American industrial footprint. We haven’t made up our mind.” The company, which makes cars in Sweden and Belgium and is building a factory in China, also is likely to decide this year to build a second plant in China, in the city of Daring, Jacoby said. Sweden-based brand Volvo, which Ford sold last year to Zhejiang Geely for about $1.5 billion, aims to more than double annual sales to 800,000 cars by 2020. It plans to invest $11 billion over the next five years to tap demand in markets including China. It may build a North American plant alone or with a partner, Jacoby said. The company is “overall optimistic” about the auto market, the German executive said. “Right now we have no indication of a decline in the market, but if it comes we are more prepared than in 2008, with respect to our fi nancial strength and flexibility in our plants.” Volvo, which employs about 20,000 people globally, has a bigger share of temporary workers than in 2008, allowing it to respond faster to a potential slowdown, he said. Volvo is likely to sell more than 400,000 cars this year and may reach 430,000, up from 373,525 last year, Jacoby said. The company unveiled a

four-door fastback with rear doors that are hinged at the rear, commonly known in the industry as “suicide doors”. It was

form will be used for the next generation of the 60, 70, 80 and 90 series. T he product ion version of the You will be the largest and most expensive car produced by Volvo. Vehicles developed off that platform w ill be offered only with a four cylinder engine. The dimensions are similar to those of current Volvo 80 sedan. The car is Before the end of the decade, all Volvo models will intended to comhave engines with no more than four cylinders pete with the Audi created on Volvo’s new frontA6, BMW 5 series and Mercedeswheel-drive platform, known as Ben z E cla ss, accord i ng SPA, which stands for Scalable to Per-Ake Froberg, a compaPlatform Architecture. The platny spokesman. Volvo was sold

last year by Ford to China’s Zhejiang Geely for about $1.5 billion. Volvo is trying to attract luxury car owners. Being in “a position bet ween not truly being premium and losing ground against volume competitors is not a sustainable position,” said CEO, Volvo Car, Stefan Jacoby. “We will clearly go upscale.” As Volvo sales grow, the brand will consider a factory in the United States, he said. But a decision won’t be made for about five years. Volvo’s 2020 sales target for the United States is to more than double sales to 120,000 units. This year, Volvo predicted it would sell 60,000 to 70,0 0 0 cars in t he United States in 2011 based on strong sales of the redesigned S60 sedan. Through August, it sold 47,113 units.

Auto Monitor

ADVERTISERS’ LIST CORPORATE

1 - 15 October 2011

Pg No. ........Advertiser ...................................................................................Tel ..................................................E-mail ...................................................................... Website 31...............Ace Designers Ltd .......................................................................+91-80-22186700 ..........................acedesigners@acemicromatic.com ......................... www.acedesigners.co.in 37...............ADEA Awards ..............................................................................+91-22-30034650 ..........................prachi.mutha@infomedia18.in ............................... www.adea.in 8 ................Auroral Sinter Metals Co., Ltd. ....................................................+886-37-542-988 ...........................sh69032.tw@msa.hinet.net .................................... www.auroral-sinter.com.tw 20 ..............Baker Gauges India Pvt Ltd ........................................................+91-20-66093800 ..........................rgs@bakergauges.com ............................................ www.bakergauges.com 40 ..............CNBC TV 18 ......................................................................................................................................................................................................................... www.emergingindia.moneycontrol.com 18...............Coatec India................................................................................+91-160-2648700 ..........................info@coatecindia.com ............................................ www.coatecindia.com 44 ..............Confederation Of Indian Industry ..............................................+91-124-4013871........................... rachna.jindal@cii.in .............................................. www.autoexpo.in 29 ..............Delphi ................................................................................................................................................................................................................................. http://delphi.com/ 45...............Dynabrade India Abrasive Power Tools Pvt Ltd..........................+91-22-27632226 .........................customerservice.india@dynabrade.com ................ www.sata.com/H20 27 ..............Ecocat India Pvt Ltd....................................................................+91-129-4266500 ..........................alok@ecocatindia.com ............................................ www.ecocat.com 34 ..............Electronica Hitech Machines Pvt Ltd ..........................................+91-20-30435400 ..........................marketing@electronicahitech.com ......................... www.electronicahitech.com 35...............Electronica Hitech Machines Pvt Ltd ..........................................+91-20-30435400 ..........................marketing@electronicahitech.com ......................... www.electronicahitech.com 32,43 ..........Engineering Expo .......................................................................+91-9819552270............................engexpo@infomedia18.in ....................................... www.engg-expo.com 21 ..............Forging Machinery Manufacturing Co ........................................+91-161-5011755 ...........................info@nkhammers.com ............................................ www.nkhhammers.com 47 ..............G W Precision Tools India Pvt Ltd ...............................................+91-80-40431252 ..........................info@gwindia.in ...................................................... www.gwindia.in 55...............Guhring India Private Limited ....................................................+91-80-40322500..........................info@guhring.in ..................................................... www.guhring.in 25 ..............Haas Automation India Pvt Ltd ..................................................+91-22-27742181 ...........................indiasales@haascnc.com ........................................ www.haascnc.com 22 ..............IGUS India Pvt Ltd.......................................................................+91-80-39127800 ..........................info@igus.in ............................................................ www.igus.in 30 ..............Indian Machine Tools Manufacturers’ Association .....................+91-80-66246514 ..........................anuj@imtma.in ....................................................... www.imtma.in 38 ..............Indian Machine Tools Manufacturers’ Association .....................+91-80-66246600..........................imtma@imtma.in .................................................... www.imtma.in 19...............ISMT Limited...............................................................................+91-20-66024901 ..........................sachin.joshi@ismt.co.in........................................... www.ismt.com 23 ..............Jyoti CNC Automation Pvt. Ltd. ...................................................+91-2827-287081 ..........................info@jyoti.co.in ....................................................... www.jyoti.co.in 2 ................Kamal Envirotech Pvt Ltd ...........................................................+91-9650600413 ...........................enquiry@kamalcedsolution.com ............................ www.kamalenvirotechgroup.com 3 ................M And M Auto Indus Ltd .............................................................+91-124-4763200...........................corporate@mandmsprings.com.............................. www.mandmsprings.com 39...............MAG Industrial Automation Systems ..........................................+91-80-40677000 .........................sales-India@mag-ias.in ........................................... www.mag-ias.in 7 ................Mahindra & Mahindra Ltd ..........................................................+1800-22-6006 ..............................customercare@mahindra.com ................................ www.mahindragenio.com 5 ................Mahindra Navistar Automotives Ltd. ..........................................+1800-200-3600 ............................awards@mnexcellence.com .................................... www.mnexcellence.com 16...............Mahr Metrology India (P) Ltd. .....................................................+91-44-42170531 ..........................r.ganesan@mahr.com ............................................. www.mahr.com 56 ..............Micromatic Grinding Technologies Ltd .......................................+91-80-41492285 ..........................mmtblr@acemicromatic.com ................................. www.acemicromatic.com 17...............NI Systems India Pvt Ltd .............................................................+91-80-41190000 ..........................ni.india@ni.com ...................................................... www.ni.com 31...............Padmini VNA Mechatronics Pvt. Ltd...........................................+91-124-3207398 ...........................sales@padminiengg.com ........................................ www.padminivna.com 22 ..............Perfect Oil Seals & I.P.R. .............................................................+91-20-30687701 ..........................sales@posil.co.in ..................................................... www.posil.co.in 11 ...............Rane Holdings Limited ...............................................................+91-44-28112472 ..........................v.usha@rane.co.in ................................................... www.rane.co.in 4 ................Safexpress Private Limited .........................................................+1800-113-113 ...............................suyash.srivastava@safexpress.com ......................... www.safexpress.com 6 ................Scholler Arca Time Materials Handling Solutions Ltd. ................+91-22-42119500...........................sales@satmhs.com .................................................. www.satmhs.com 49...............Selvel Auto Traders .....................................................................+91-130-2243148 ...........................senior@ndf.vsnl.net.in ............................................ www.senior-rubbers.com 8 ................Sreelakshmi Traders ...................................................................+91-44-24343343 ..........................sreelakshmitraders@gmail.com.............................. www.sreelakshmitraders.com 42...............TAGMA ........................................................................................+91-22-28526876 ..........................mumbai@tagmaindia.org ....................................... www.tagmaindia.org 41...............Tata Motors Ltd...........................................................................+91-22-66561866 ..........................charu.gulati@tatamotors.com ................................ www.tatamotors.com 15...............The Indian Electric Co.................................................................+91-20-24475845 ..........................iecmktg@indianelectric.com .................................. www.indianelectric.com 26...............The Supreme Industries Limited ................................................+91-9892569003 ...........................protec@supreme.co.in ............................................ www.supreme.co.in 9 ................Volvo India Pvt Ltd ............................................................................................................................................................................................................. www.volvobuses.co.in 13...............Yamazaki Mazak India Pvt Ltd ...................................................+91-2137-668800 ..........................sudhir_patankar@mazakindia.com ........................ www.mazak.com Q Our consistent advertisers

1 - 15 October 2011

GLOBAL WATCH CORPORATE

Auto Monitor

International auto round-up GM’s workers guaranteed $12,500 in bonuses in UAW contract

Jaguar Land Rover picks UK for new plant

United Auto Workers members working for GM will be guaranteed at least $12,500 in bonuses over the next four years under a proposed deal that will also result in 6,400 saved or added jobs and $2.5 billion in additional US investment, according to a report in The Detroit News. That’s all if the deal is ratified by a majority of the 48,500 UAW members who work for GM, UAW President Bob King said at the GM-UAW Center for Human Resources Centre off Jefferson Avenue. “One of our main objectives is jobs, and I think we met that objective,” said Ashton, adding that 11,400 jobs have been recovered over the last two years, and there will be 6,500 more over the next two years. But workers won’t be getting back cost of living increases or base pay raise. The jobs bank, which provided pay and benefits to laidoff workers, isn’t being restored. Workers, however, will get jobs at five or more US plants. Work is also coming back from Mexico. GM will reopen its former Saturn assembly plant in Spring Hill, which was idled in 2009 during the automaker’s bankruptcy. The automaker will add 500 workers within the year to the Spring Hill plant for one mid-size car, and launch a second mid-size car at the end of 2013, Ashton said. Other plants to benefit include the Warren transmission plant; Wentzville, Saginaw and Fort Wayne, Indiana, which will build a next-generation truck. Wentzville gets an additional shift to make the next-generation of Chevrolet Colorado and GMC Canyon compact pickups. A new compact car will be built at a site still to be disclosed in a move that will add or retain 500 jobs. Work that would have been done in Mexico will remain in Saginaw. Another 630 jobs will be retained at a pair of powertrain facilities: Romulus gets a new engine programme and there is new transmission work for the plant in Warren under a plan to repatriate work from Mexico. Saginaw casting receives additional investment in a contract that ensures 1,400 of the additional jobs are at supplier plants. The Shreveport, La., plant is still scheduled to close, but the Janesville plant remains on standby. Other details being released Tuesday include confi rmation of a $5,000 signing bonus, profit sharing as high as $12,000 and $1,000 inflation protection lump sums paid out in 2012, 2013 and 2014. UAW members who work for GM will see a minimum profit sharing payout of $3,500 in 2012 for 2011 profits under a formula designed to be easier to understand and based on North American profits. Profit-sharing checks could total as much as $20,000 over the life of the agreement, but that will depend on GM’s North American profits, King said. The union also proposes that 10 percent of each employee’s profit sharing go into the health care trust to meet obligations to retirees.GM will offer buyouts of $65,000 to skilled trade workers who retire between 1 November, 2011 and 31March, 2012 and $10,000 for other eligible workers. The move makes room for GM to hire new workers at the

Jaguar Land Rover will invest £355 million ($561 million) to build a new engine plant in the UK, the company said. The chosen site in Wolverhampton, central England, will manufacture a family of four-cylinder gasoline and diesel engines and help drive efﬁciencies across the company’s other UK facilities. JLR’s engines are currently supplied by Ford, which sold the brands to India’s Tata Motors in 2008. Executive Director, Jaguar Land Rover, Mike Wright said the company had considered building the facility in a number of locations within the UK and outside the UK. “One obvious location would have been India,” said Wright. “There are a host of factors that go into these deci-

Bob King, UAW President

lower wage, which helps keep the company’s labour costs competitive—a condition of the federal bailout received in 2009. King said there are 14,000 to 17,000 workers eligible to retire.

sions, but on the balance of all of those factors, we determined with the support of Tata Motors, in this instance, the UK was the best option,” he said. JLR has three assembly plants in central England. Situating the engine factory “almost equidistant between our Halewood, Solihull and Castle Bromwich plants does have efficiency benefits,” Wright said. As part of its growth strategy and investment, Jaguar Land Rover is targeting 40 new products over five years, as it eyes emerging market growth. “(The site) will enable us to accelerate our new products to penetrate new markets,” said Wright. “Our latest investment decision follows a period of rising sales, rising demand and rising profitability,” he said, adding that the business is performing

in line with expectations. The UK government is keen to support manufacturing in Britain and will provide up to £10 million for the plant, which is expected to create 750 jobs. Jaguar Land Rover already employs more than 19,000 people in Britain and supports up to 140,000 jobs. It has been boosted by strong demand from emerging markets such as Russia and China for its cars. “As we invest 1.5 billion pounds a year for the next ﬁve years on new product developments, expanding our engine range will help us realise the full global potential of the Jaguar and Land Rover brands,” said Ralf Speth, JLR CEO. Speth said last week at the Frankfurt auto show that JLR expected to decide on a local partner for production in China by the end of this year.

Auto Monitor

PRODUCT INDEX

1 - 15 October 2011

Products .......................................................... Pg. No.

11th Auto Expo’2012...................................................44

Contour evaluation in single trace .............................16

Packaging solutions ...................................................6

5c indexers .................................................................25

Countersinks ..............................................................55

Paint spray guns .........................................................45

Abb motors eff 1 ........................................................15

Cutting machines .......................................................18

Pbegl geared motors ..................................................15

Acc. Padel sensor assy. ...............................................31

Cv joint machines .......................................................39

Powder matallergy products......................................8

Adea - Automotive Dealership Excellence Awards .....33

Cylindrical grinders ....................................................56

Power chucking cylinders ..........................................56

Automation ................................................................18

Diamond tools............................................................55

Power steering systems ..............................................11

Automation mfrs ........................................................25

Drilling tools...............................................................55

Powertrain gauging ....................................................20

Automobile parts .......................................................8

Driver interface ..........................................................29

Powertrain systems ....................................................29

Bbl brake moters........................................................15

E-coatings solutions ...................................................2

Proﬁlers and gantry machines - 3 & 5 axis.................39

Bbl/kec ﬂame proof motors .......................................15

Egr valve .....................................................................31

Protective packaging and cushioning solutions .........26

Bearings .....................................................................22

Electrical/electronic architecture ...............................29

Reamers .....................................................................55

Billet shearing machines ............................................21

Electronic control unit ...............................................31

Rotary tables ..............................................................25

Brake linings ..............................................................11

Engine valves..............................................................11

Rubber parts for automobile industry .......................49

Building automation ..................................................18

Exhibition - Engineering Expo ....................................32,43

Safety electronics .......................................................29

Buses ..........................................................................41

Exhibition - TAGMA .....................................................42

Seat belt systems ........................................................11

C frame power press ..................................................21

Extension springs .......................................................3

Self adhesive tapes .....................................................8

Cable carriers .............................................................22

Factory automation....................................................18

Sensors .......................................................................29

Cable connectors........................................................22

Flange mounting b5/b35 motors................................15

Siemens motors eﬁ 1 ..................................................15

Ced/ktl coatings .........................................................2

Forging press ..............................................................21

Silicon carbide based particulate ﬁlters.....................27

Chains.........................................................................22

Friction drop hammers ..............................................21

Solid carbide drills .....................................................47

CNC .............................................................................23

Friction screw press ...................................................21

Solid carbide drills with ic ..........................................47

CNC cutting machines ................................................18

Gun drills ....................................................................55

Solid carbide mills......................................................47

CNC hmcs ...................................................................23

H frame power press ..................................................21

Solid carbide reamers ................................................47

CNC laser cutting machines........................................18

Hammers....................................................................21

Solid carbide reamers with ic.....................................47

CNC lathes ..................................................................1,25,56

Hmc horizontal spindle..............................................25

Solid carbide special drills .........................................47

CNC machines ............................................................23

Hmc/vmc machines....................................................34

Solid carbide special mills..........................................47

CNC oval turning centers ............................................23

Hmc/vmc machines....................................................35

Solid carbide special reamers ....................................47

CNC oxy fuel cutting machine ....................................18

Hollow bars ................................................................19

Solid oxide fuel cell technolgy ...................................29

CNC plasma cutting machines ....................................18

Horizontal boring machines ......................................39

Special machines........................................................39

CNC turn mill centers .................................................23

Horizontal CNC machines...........................................23

Stainless steel gear parts ............................................8

CNC turning center .....................................................23

Horizontal machining center .....................................23 ,39

Taps ............................................................................55

CNC turning centers....................................................1

Horizontal turning centers .........................................39

Teﬂon oil seals............................................................22

CNC vertical machining center ...................................23

Hybrid & electric vehicle products.............................29

Thermal ......................................................................29

CNC/vmc machines.....................................................13

Imaging & vision systems ...........................................18

Tool presetters ...........................................................16

Coating machines .......................................................18

Infotainment ..............................................................29

Tool presetting ...........................................................16

Coating plants ............................................................18

Instrumentation & controls .......................................17

Torsion springs ...........................................................3

Coating systems ..........................................................18

Kec ac motors .............................................................15

Total data management .............................................16

Cold forming machines ..............................................39

Kec dc motors ............................................................15

Transmission gears .....................................................8

Commercial vehicles ..................................................5

Kec slipring crane duty motors ..................................15

Turrets ........................................................................56

Commercial vehicles ..................................................7,9,41

Logistics services ........................................................4

Vaccum pump ............................................................31

Compressed air ﬁlters ................................................45

Marpreset ...................................................................16

Valve stem seals .........................................................22

Compression springs ..................................................3

Marsurf ld 120 roughness ..........................................16

Ventilators ..................................................................8

Connectors .................................................................22

Material handling solutions .......................................6

Vertical line series ......................................................23

Measurement .............................................................16

Vertical machining centers.........................................56

Metal cutting tools .....................................................47

Vertical machining centers 3 & 5 axis ........................39

Milling cutters ............................................................55

Vertical turning centers ..............................................39

We will make your search simple. Just type AM (space) Segment of the Supplier and send it to 51818.

Modular tooling system .............................................55

Vmc vertical machines ...............................................25

‘O’ rings ......................................................................22

Vmc-linear series ........................................................23

eg. AM (space) Castings and send it to 51818.

Oil seals ......................................................................22

Wire forms ..................................................................3

Looking for a Supplier?

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

1 - 15 October 2011

Auto Monitor

CORPORATE

Steel industry poised to meet 2020 targets Our Bureau Mumbai

he Confederation of Indian Industry (CII) organised the Steel Tube Summit recently. The summit brought together industry leaders from the steel tube and steel industries, key players from the user segment, major stakeholders and policy makers in sessions that discussed the challenges faced by the industry, the expectations from user industries, future roadmap for growth and the need for increased efforts towards technological innovations. In his inaugural address, Secretary, Ministry of Steel, PK Mishra stated that the steel tubes and pipes sector constituted a niche segment and holds immense potential for growth in the coming decades. This growth is driven by a huge surge in demand, given the increasing use of pipeline transportation in a wide variety of sectors—including oil and natural gas, petroleum, water and even agriculture. He added that in the future, there would be an increased transportation of slurry using pipes, and that the sector was therein enabling a low cost, effective transportation. Mishra also said that the steel industry must also ensure a consonant growth in production levels so as to meet the increasing demands placed on it. The government hopes to create a steel production capacity of 200 MT by the year 2020 and this gave the steel industry and the steel tubes and pipes sector a huge impetus. He said that the Indian steel tubes industry enjoyed the reputation of producing impeccable quality products but was challenged by high costs of raw materials and subsequent low margins. The challenge for the steel tubes and pipe sector would lie in moving away from its current stand-alone disposition to more consolidated productions in larger diameters. He said that the steel industry would pick up in the coming months, and reach its targeted 10 percent by the end of the financial year. He envisaged changes in the new Mines and Mineral Development Regulation (MMDR) Act that would function to create a level playing field for all stakeholders, while allowing the industry to benefit in equal measure. Responding to a question on how the steel ministry views the current challenges faced by industry in getting environmental clearances and acquiring land, he said that a group of ministers headed by the fi nance minister had been constituted to deliberate on these issues, and added that the Ministry’s suggestions were being looked into. He also said that plans were on the anvil to make the process of getting environment clearances less complex and more efficient. Director and CEO, JSW Steel, Dr Vinod Nowal called for concerted efforts to address the challenges faced by the steel and steel tubes industry. The Indian industry, with a current production capacity of 69.93 mt, is the world’s second largest steel producer, and had huge demands to meet in the local and global markets. He said that there was a pressing need for increased R&D and the creation of new technological innovations. Nowal added that there exists a huge shortage of skilled man-

power and called for skill training initiatives to address these gaps in the steel tubes sector. He also stated that the steel pipes industry was going to beneﬁt greatly from the growing demands placed on the pipe market, given the government’s decision to create a pipe outlay of 80,000 kilometers in the 12th plan. Regulations still impeded the industry, and Dr. Nowal called for a proactive role by the Ministry in addressing these issues. In his opening remarks, Chairman, CII Steel Tube Division and Executive In-Charge, Tata Steel, Rajiv Mangal called for the drawing up of a concrete roadmap for growth during the summit deliberations. He said that the production trends of the industry were being impacted by the changing needs of the customer and that the sector has witnessed an increased

PK Misra, Secretary, Ministry of Steel addressing the Steel Tube Summit

agility, and a huge improvement in business processes. He added that the steel tube sector is witnessing a variety of demands placed on it, especially from the infrastructure, automobile and agricultural

sectors, and that production levels would have to be increased signiﬁcantly to meet demands. The Indian steel sector, he said, was on a steady growth path but would need to address key chal-

lenges to meet its targets. Vice Chairman, Gallum Industries, YK Bhatia, in his concluding remarks called for better utilization of the latent capacity of the steel tubes industry.

Auto Monitor

1 - 15 October 2011

SIAM DATA

FLASH REPORT (MEDIA) REPORT II

Source: SIAM

Category Segment/Subsegment Manufacturer.

Production For the month of August 2010

2011

Cumulative April-August 10-11

11-12

Domestic Sales For the month of August 2010

I Passenger Vehicles (PVs) A : Passengers Cars - Upto 5 Seats Micro: Seats Upto-4, Length Normally <3200 mm, Body Style-Hatchback, Engine Displacement Normally upto 0.8 Litre Regular: Tata Motors Ltd (Nano) 7,739 1,143 30,002 26,481 8,103 Total 7,739 1,143 30,002 26,481 8,103 Micro: Seats Upto-5, Length Normally <3600 mm, Body Style-Hatchback, Engine Displacement Normally upto 1.0 Litre Regular: General Motors India Pvt Ltd (Spark) 2,497 660 13,963 14,497 2,462 Hyundai Motors India Ltd(Santro) 12,149 9,356 50,018 54,574 6,619 Maruti Suzuki India Ltd (M800, Alto,Wagon R,A-Star) 59,120 43,434 264,124 257,053 45,917 Total 73,766 53,450 328,105 326,124 54,998 Compact: Seats Upto-5, Length Normally 3600-4000 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 1.4 Litre Regular: Fiat India Automobiles Pvt Ltd (Palio, Grande Punto) 1,182 859 6,081 6,296 1,012 Ford india Pvt Ltd (Figo ) 7,621 6,935 36,508 38,833 6,382 General Motors India Pvt Ltd (Beat, U-VA) 2,279 3,997 16,877 20,380 2,695 Honda Siel Cars India ltd (Jazz) 180 570 676 600 587 Hyundai Motors India Ltd(Getz, i10, i20) 31,961 33,603 168,304 172,671 18,428 Maruti Suzuki India Ltd (Swift, Ritz, Estilo) 22,627 15,175 112,870 85,900 21,955 Nissan Motor India Pvt Ltd (Micra) 3,324 9,874 4,348 49,220 1,182 SkodaAuto india p.ltd ( Fabia ) 444 940 2,576 8,551 496 Tata Motors Ltd (Indica,Indica Vista, Indigo CS) 12,381 11,233 72,133 59,595 7,531 Toyota Kirloskar Motor Pvt Ltd (Liva) 0 2,967 0 6,339 0 Volkswagen India Pvt Ltd (Polo) 2,835 3,299 9,255 22,533 3,211 Total 84,834 89,452 429,628 470,918 63,479 Super Compact: Seats Upto-5, Length Normally 4000-4250 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 1.6 Litre Regular: Hyundai Motors India Ltd (Accent) 3,171 3,026 14,122 16,203 1,390 Mahindra & Mahindra Ltd (Verito) 1,027 1,803 4,073 7,391 801 Maruti Suzuki India Ltd (Dzire) 8,474 7,890 42,261 35,762 8,431 Toyota Kirloskar Motor Pvt Ltd (Etios-Sedan) 0 3,213 0 20,445 0 Total 12,672 15,932 60,456 79,801 10,622 Super Compact: Seats Upto-5, Length Normally 4000-4250 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 1.6 Litre Specialty: Volkswagen India Pvt Ltd (Beetle) 0 0 0 0 35 Total 0 0 0 0 35 Mid-Size: Seats Upto-5, Length Normally 4250-4500 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 1.6 Litre Regular: Ford India Pvt Ltd (Ford ikon,Fiesta Classic) 1,441 2,107 7,561 8,171 1,319 General Motors India Pvt Ltd (Aveo) 270 54 1,908 679 315 Hindustan Motors Ltd (Lancer) 57 62 369 150 47 Honda Siel Cars India Ltd (City) 5,789 3,857 19,299 12,282 4,251 Hyundai Motors India Ltd (Verna) 2,100 4,204 9,575 19,128 2,138 Maruti Suzuki India Ltd (SX4) 1,972 2,038 8,319 9,910 2,048 Tata Motors Ltd (Indigo, Manza) 3,201 1,478 16,153 7,359 6,678 Volkswagen India Pvt Ltd (Vento) 421 3,520 421 16,950 0 Specialty: Hindustan Motors Ltd (Ambassador) 723 248 3,328 1,146 707 Total 15,974 17,568 66,933 75,775 17,503 Executive: Seats Upto-5, Length Normally 4500-4700 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 2.0 Litre Regular: Fiat India Automobiles Pvt Ltd (Linea) 755 33 4,761 2,743 800 General Motors India Pvt Ltd (Optra, Cruze) 865 741 4,963 5,773 806 Hindustan Motors Ltd (Cedia sports) 0 1 35 35 2 Honda Siel Cars India Ltd (Civic) 540 150 2,100 1,350 455 Hyundai Motors India Ltd (Elantra) 0 0 0 0 0 Maruti Suzuki India Ltd (Kizashi) 0 0 0 0 0 Renault India Pvt Ltd (Renault FLUENCE) 0 199 0 919 0 Skoda Auto India Pvt Ltd (Laura) 740 696 3,371 3,422 652 Toyota Kirloskar Motor Pvt Ltd (Corolla ) 1,070 901 3,942 3,774 1,024 Volkswagen India Pvt Ltd (Jetta) 407 451 2,135 503 215 Specialty: BMW india pvt Ltd ( 3 Series) 192 198 849 803 229 Hindustan Motors Ltd (EVO X) 0 1 0 3 0 Mercedes-Benz India Pvt Ltd (C-Class) 216 290 1,010 1,516 258 Volkswagen - Audi (A4) 0 0 0 0 112 Total 4,785 3,661 23,166 20,841 4,553 Premium: Seats Upto-5, Length Normally 4700-5000 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 3.0 Litre Regular: Honda Siel Cars India Ltd ( Accord ) 240 0 780 660 203 Hyundai Motors India Ltd ( Sonata ) 20 4 121 101 26 Nissan Motor India Pvt Ltd (Teana) 0 128 0 128 21 Skoda Auto India Pvt Ltd (Superb) 360 400 1,775 1,792 363 Toyota Kirloskar Motor Pvt Ltd (Camry ) 0 0 0 0 34 Volkswagen India Pvt Ltd (Passat) 120 110 571 683 66 Specialty: BMW india pvt Ltd (Gran Turismo, 5 Series) 270 243 546 1,368 281 Mercedes-Benz India Pvt Ltd (E-Class) 178 247 761 1,314 210 Toyota Kirloskar Motor Pvt Ltd (Prius ) 0 0 0 0 10 Volkswagen - Audi (A6, A7) 0 0 0 0 79 Total 1,188 1,132 4,554 6,046 1,293 Luxury: Seats Upto-5, Length Normally Over 5000 mm, Body Style-Sedan/Estate/Hatch/Notchback, Engine Displacement Normally upto 5.0 Litre Regular: BMW india pvt Ltd (7 Series ) 0 0 0 0 41 Mercedes-Benz India Pvt Ltd ( S-Class) 76 64 292 231 45 Volkswagen - Audi (A8) 0 0 0 0 1 Volkswagen India Pvt Ltd (Phaeton) 0 0 0 0 4 Total 76 64 292 231 91 Coupe: Roadster - 2 Doors; 2/4 seater, retractable/firm roof Regular: BMW india pvt Ltd (6 Series, Z4) 0 0 0 0 11 Mercedes-Benz India Pvt Ltd (E-Coupe, E-Cabrio, CLS, SLK) 0 0 0 0 23 Nissan Motor India Pvt Ltd (370Z) 0 0 0 0 2 Volkswagen - Audi (R8, RS5) 0 0 0 0 0 Total 0 0 0 0 36 Exotics: Upto 5 Seats, Price >Rs. 1 Crore Mercedes-Benz India pvt. Ltd (SLS AMG) 0 0 0 0 0 Total 0 0 0 0 0 Total Passenger Car 201,034 182,402 943,136 1,006,217 160,713 B: Utility Vehicles (Uvs) B: Utility Vehicles / Sports Utillty Vehicles; 2x4 or 4x4 offroad capability; Generally ladder on frame; 2 box ; 5 seats or more but upto 10 Seats UV1: Length<4400 mm, Price Upto Rs. 15 Lakh Force Motors Ltd (Trax) 15 29 160 153 33 Mahindra & Mahindra Ltd (Bolero, ST) 6,477 7,613 29,925 36,655 5,388 Maruti Suzuki India Ltd (Gypsy) 272 510 2,179 2,885 161 Tata Motors Ltd (Sumo,) 1,445 1,178 7,396 6,559 1,219 Total 8,209 9,330 39,660 46,252 6,801 UV2: Length<4400 - 4700 mm, Price Upto Rs. 15 Lakh General Motors India Pvt Ltd (Tavera) 1,391 1,892 7,549 9,090 1,435 International Cars & Motors Ltd (Rhino) 51 27 345 169 53 Mahindra & Mahindra Ltd (Scorpio, Bolero, ST, Xylo) 8,329 8,755 37,013 42,759 7,607 Tata Motors Ltd (Sumo Grande, Safari) 1,846 1,139 8,875 7,087 1,655 Toyota Kirloskar Motor Pvt Ltd (Innova) 4,365 4,222 22,236 20,189 4,238 Total 15,982 16,035 76,018 79,294 14,988 UV3: Length>4700 mm, Price Upto Rs. 15 Lakh Force Motors Ltd (Trax) 230 283 1,188 1,319 223 Tata Motors Ltd (Aria, Xenon) 38 429 186 1,506 26 Total 268 712 1,374 2,825 249 UV4: Price Between Rs. 15 to 25Lakh BMW india Pvt Ltd (X1) 0 355 0 1,984 0 Ford India Pvt Ltd (Endeavour) 325 274 1,480 1,186 224 General Motors India Pvt Ltd (Captiva) 0 0 0 0 176 Hindustan Motors Ltd (Pajero, Outlander) 315 183 1,007 887 315 Honda Siel Cars India Ltd (CRV) 0 0 0 0 22 Hyundai Motors India Ltd (Santa Fe) 0 330 0 500 0 Maruti Suzuki India Ltd (Vitara) 0 0 0 0 5 Nissan Motor India Pvt Ltd (X-Trail) 0 0 0 0 44 Skoda Auto India Pvt Ltd (Yeti) 0 156 0 1,082 1 Toyota Kirloskar Motor Pvt Ltd (Fortuner) 1,077 904 5,106 4,365 1,040 Total 1,717 2,202 7,593 10,004 1,827 UV5: Price > Rs. 25Lakh BMW india Pvt Ltd (X3, X5, X6) 0 81 0 110 21 Hindustan Motors Ltd (Mentero) 0 8 5 42 0 Mercedes-Benz India pvt. Ltd (ML Class, GL Class, R Class, G class) 0 0 0 0 37 Toyota Kirloskar Motor Pvt Ltd (LC,Prado) 0 0 0 0 15 Volkswagen - Audi (Q5,Q7) 0 0 0 0 81 Volkswagen India Pvt Ltd (Touareg) 0 0 0 0 0 Total 0 89 5 152 154 Total Utillity Vehicles (Uvs) 26,176 28,368 124,650 138,527 24,019 C: Vans; Generally 1 or 1.5 box; seats upto 5 to 10 V1: Hard tops mainly used for personal transport, Price Upto Rs. 10 Lakh Maruti Suzuki India Ltd (Omini,Ecco) 14,267 14,291 62,779 70,148 14,157 Tata Motors Ltd (Venture) 0 626 14 3,166 0 Total 14,267 14,917 62,793 73,314 14,157 V2: Soft tops mainly used as Maxi Cabs, Price Upto Rs. 10 Lakh Force Motors Ltd (Trip) 9 0 39 100 3 Mahindra & Mahindra Ltd (Gio, Maxximo Mini Van) 0 2,880 0 9,693 0 Tata Motors Ltd (Magic, lris) 4,660 5,526 20,955 21,613 4,980 Total 4,669 8,406 20,994 31,406 4,983 Total Vans 18,936 23,323 83,787 104,720 19,140 Total Passenger Vehicles (PVs) 246,146 234,093 1,151,573 1,249,464 203,872 II Commercial Vehicles (CVs) M&HCVs A: Passenger Carriers A1: Max. Mass exceeding 7-5 tonnes but not exceeding 12 tonnes (M3(B1)) (b): No. of seats including driver exceeding 13 (M3(B2)) Ashok Leyland Ltd 135 228 833 1,101 182 Mahindra & Mahindra Ltd 0 0 0 0 0 Mahindra Navistar Automotives Ltd 59 16 245 91 31 SML Isuzu Ltd 390 232 1,544 1,228 353 Tata Motors Ltd 402 554 2,493 2,939 565 VE CVs - Eicher 319 215 1,267 1,681 185 Total A1 1,305 1,245 6,382 7,040 1,316 A2: Max. Mass exceeding 12 but no exceeding 16.2 tonnes (M3(C)) (b): No. of seats including driver exceeding 13 (M3(C2)) Ashok Leyland Ltd 1,962 1,774 8,443 8,578 1,674 JCBL Ltd 0 0 0 1 0 SML Isuzu Ltd 10 4 36 37 10 Tata Motors Ltd 1,710 1,405 7,326 5,337 1,898 VE CVs - Eicher 12 73 68 271 9 Volvo Buses India Pvt Ltd 11 17 95 112 18 Total A2 3,705 3,273 15,968 14,336 3,609 A3: No. of seats including exceeding 13 and max. mass exceeding 16.2 tonnes (M3(D)) Passenger Carrier (D) Volvo Buses India Pvt Ltd 11 20 75 188 14 Total A3 11 20 75 188 14 Total M&HCVs(passenger carriers) 5,021 4,538 22,425 21,564 4,939 M&HCVs B: Goods Carriers (c) Max Mass exceeding 7.5 tonnes but not exceeding 10 tons Ashok Leyland Ltd 82 55 198 259 48 SML Isuzu Ltd 193 279 1,128 1,350 161 Tata Motors Ltd 411 717 2,407 2,919 626 VE CVs - Eicher 946 984 3,938 4,371 809 Total 1,632 2,035 7,671 8,899 1,644 (d) Max. Mass Exceeding 10 tons but not exceeding 12 tons Ashok Leyland Ltd 264 461 1,174 1,778 181 SML Isuzu Ltd 143 72 525 631 160 Tata Motors Ltd 787 1,029 4,789 4,985 1,174

Exports Cumulative April-August

For the month of August

Cumulative April-August

2011

10-11

11-12

2010

2011

10-11

11-12

1,202 1,202

31,882 31,882

26,441 26,441

0 0

1 1

1,125 1,125

1,297 6,955 37,496 45,748

13,927 33,238 204,214 251,379

13,018 34,286 197,576 244,880

19 4,940 10,695 15,654

4 4,455 13,899 18,358

28 16,117 56,685 72,830

24 18,771 47,286 66,081

956 5,204 4,740 600 14,559 16,043 1,345 1,108 7,206 2,816 2,615 57,192

5,603 31,714 15,361 2,151 90,861 106,836 2,110 2,564 56,474 0 9,131 322,805

5,581 27,796 16,610 1,518 86,526 80,793 7,268 7,089 45,217 6,104 16,042 300,544

97 820 20 6 15,817 1,230 0 0 585 0 0 18,575

0 1,515 12 0 17,718 241 8,905 0 193 0 0 28,584

714 2,594 107 11 80,728 5,516 0 0 2,911 0 0 92,581

662 9,755 65 0 78,196 5,847 42,540 0 1,498 0 0 138,563

714 1,710 7,856 2,708 12,988

6,507 2,869 41,795 0 51,171

4,716 7,147 35,972 19,874 67,709

1,278 400 47 0 1,725

2,180 0 60 0 2,240

8,854 1,500 315 0 10,669

10,605 0 102 0 10,707

3 3

202 202

30 30

0 0

1,945 126 57 5,819 4,211 1,893 5,100 3,019

6,565 1,734 358 17,268 9,693 7,994 21,158 0

7,340 754 145 16,083 19,248 9,713 10,193 13,591

163 10 0 8 0 0 310 0

17 6 0 0 0 126 6 0

574 75 0 23 0 14 821 0

363 59 0 6 0 127 183 0

226 22,396

3,292 68,062

1,142 78,209

0 491

0 155

0 1,507

0 738

113 824 2 330 0 8 171 386 913 319

4,610 4,102 75 1,886 2 0 0 2,803 3,885 1,606

2,293 4,873 25 1,181 0 157 673 2,726 3,767 750

38 0 0 0 0 0 0 0 0 0

0 4 0 0 0 0 0 0 0 0

40 3 0 3 0 0 0 0 0 0

179 14 0 0 0 0 0 0 0 0

140 1 319 180 3,706

850 0 1,050 474 21,343

864 3 1,180 854 19,346

0 0 0 0 38

0 0 0 0 4

0 0 0 0 46

0 0 0 0 193

132 12 13 200 34 133

919 129 119 1,670 148 492

517 83 33 1,473 103 771

0 0 0 0 0 0

2 0 0 0 0 0

289 189 0 162 1,164

763 817 79 351 5,487

1,243 1,016 4 397 5,640

0 0 0 0 0

0 0 0 0 2

30 22 28 2 82

204 186 5 11 406

135 146 133 14 428

0 0 0 0 0

6 19 0 9 34

45 67 4 0 116

25 55 2 44 126

0 0 0 0 0

1 1 144,516

0 0 752,853

5 5 743,358

0 0 36,483

0 0 49,341

0 0 177,634

0 0 217,409

27 5,930 1,285 1,333 8,575

150 28,153 3,500 6,692 38,495

149 34,415 3,415 6,973 44,952

0 7 0 58 65

0 6 2 3 11

0 189 12 207 408

1 71 52 198 322

1,912 31 8,024 1,208 4,303 15,478

7,350 340 35,777 8,124 22,097 73,688

9,020 166 39,628 6,260 20,209 75,283

3 0 63 51 0 117

12 0 156 26 0 194

4 0 935 116 0 1,055

40 0 1,668 69 0 1,777

285 220 505

1,111 1,055 2,166

1,261 1,263 2,524

0 0 0

0 68 68

0 0 0

0 72 72

251 233 113 207 26 226 5 26 118 897 2,102

0 1,243 739 1,008 219 0 41 201 2 5,059 8,512

1,543 1,138 702 881 134 621 19 101 753 4,358 10,250

0 0 0 0 0 0 0 0 0 0 0

100 8 64 8 135 0 315 26,975

125 8 144 160 423 3 863 123,724

223 42 354 37 824 4 1,484 134,493

0 0 0 0 0 0 0 182

0 0 0 0 0 0 0 273

0 0 0 0 0 0 0 1,463

0 0 0 0 0 0 0 2,171

12,500 560 13,060

61,295 0 61,295

66,628 2,456 69,084

145 0 145

28 0 28

755 0 755

574 0 574

16 2,424 4,923 7,363 20,423 191,914

11 0 20,763 20,774 82,069 958,646

120 9,010 21,136 30,266 99,350 977,201

0 0 0 0 145 36,810

0 0 0 0 28 49,642

0 0 39 39 794 179,891

0 0 102 102 676 220,256

205 0 0 330 545 254 1,334

782 0 279 1,455 3,074 1,349 6,939

1,242 0 1 1,352 2,733 1,692 7,020

8 0 0 1 249 6 264

28 0 0 0 0 3 31

101 5 0 4 289 112 511

92 0 0 5 164 38 299

1,343 0 5 1,184 49 17 2,598

6,681 0 35 6,568 69 99 13,452

6,480 1 36 4,986 221 110 11,834

329 0 0 459 0 0 788

465 0 0 156 0 0 621

1,469 0 0 1,599 11 0 3,079

1,821 0 0 1,309 19 0 3,149

23 23 3,955

71 71 20,462

185 185 19,039

0 0 1,052

0 0 652

0 0 3,590

0 0 3,448

21 228 780 893 1,922

191 968 2,808 3,902 7,869

168 1,051 3,649 4,168 9,036

0 21 47 39 107

0 20 37 27 84

32 61 273 145 511

34 140 259 59 492

211 117 1,960

955 432 6,135

1,176 602 8,196

24 4 244

20 0 77

80 24 740

97 2 518

1 - 15 October 2011

Auto Monitor

SIAM DATA

Category Segment/Subsegment Manufacturer.

Production For the month of August 2010

Domestic Sales For the month of August

Cumulative April-August

2011

Exports Cumulative April-August

For the month of August

Cumulative April-August

2011

10-11

11-12

2010

10-11

11-12

2010

2011

10-11

11-12

VE CVs - Eicher 764 1,061 Total 1,958 2,623 Total B 3,590 4,658 B2: Max Mass exceeding 16.2 tonnes (N3(A)) (a) Max. mass exceeding 12 tonnes but not exceeding 16.2 tonnes (N3(A1)) Ashok Leyland Ltd 1,974 1,996 SML Isuzu Ltd 0 3 Tata Motors Ltd 3,374 6,093 VE CVs - Eicher 307 559 Total B2 5,655 8,651 B3: Max Mass exceeding 16.2 tonnes-Rigid Vehicles (N3(B1)) (a) Max. mass exceeding 16.2 tonnes but not exceeding 25 tonnes Ashok Leyland Ltd 2,337 1,640 Asia Motor Works Ltd 519 894 Mahindra Navistar Automotives Ltd 2 44 Tata Motors Ltd 4,330 3,987 VE CVs - Eicher 44 60 VE CVs - Volvo 1 0 Total 7,233 6,625 (b) Max. mass exceeding 25 tonnes Ashok Leyland Ltd 919 924 Asia Motor Works Ltd 12 62 Daimler India Commercial Vehicles Pvt Ltd 33 12 Mahindra Navistar Automotives Ltd 0 0 Tata Motors Ltd 3,479 5,189 VE CVs - Eicher 1 75 VE CVs - Volvo 61 48 Total 4,505 6,310 Total B3 11,738 12,935 B4: Max. Mass exceeding 16.2 tonnes-Haulage Tractor (Tractor-Semi Traller/Traller)(N3(B2)) (a) Max. Mass exceeding 16.2 tonnes but not exceeding 26.4 tonnes Ashok Leyland Ltd 0 0 Total 0 0 (b) Max. mass exceeding 26.4 tonnes but not exceeding 35.2 tonnes Ashok Leyland Ltd 295 294 Tata Motors Ltd 0 0 Total 295 294 (c) Mass exceeding 35.2 tonnes but not exceeding 40 tonnes Ashok Leyland Ltd 2 0 Asia Motor Works Ltd 70 76 Mahindra Navistar Automotives Ltd 0 6 Total 72 82 (d) Max. mass exceeding 40 tonnes but not exceeding 49 tonnes Ashok Leyland Ltd 254 187 Asia Motor Works Ltd 0 21 Tata Motors Ltd 0 169 VE CVs - Eicher 3 0 Total 257 377 (e) Max. mass exceeding 49 tonnes and Above Ashok Leyland Ltd 107 30 VE CVs - Volvo 18 27 Total 125 57 Total B4 749 810 Total M&HCVs (Goods Carriers) 21,732 27,054 Total M&HCVs 26,753 31,592 LCVs A: Passenger Carriers A1: Max. Mass upto 5 tonnes (a): No. of seats including driver exceeding 13 (M2(A2)) Force Motors Ltd 671 872 Mahindra Navistar Automotives Ltd 280 132 Tata Motors Ltd 281 604 Total 1,232 1,608 A2: Max. Mass exceeding 5 tonnes but not exceeding 7-5 tonnes (M3(A)) (b): No. of seats including driver exceeding 13 (M3(A2)) Ashok Leyland Ltd 74 145 Force Motors Ltd 2 0 Mahindra & Mahindra Ltd 0 0 Mahindra Navistar Automotives Ltd 97 302 SML Isuzu Ltd 293 257 Tata Motors Ltd 1,069 1,517 VE CVs - Eicher 187 265 Total A2 1,722 2,486 B2: Max. Mass upto 5 tonnes (b): No. of seats including driver not exceeding 13 (M2(A1)) Force Motors Ltd 392 444 Hindustan Motors Ltd 0 0 Tata Motors Ltd 75 124 Total B2 467 568 Total LCVs (Passenger Carriers) 3,421 4,662 LCVs B: Goods Carriers (a) Max. Mass not exceeding 2 tons-Mini Truck Segment Force Motors Ltd 24 0 Mahindra & Mahindra Ltd 2,532 4,790 Piaggio Vehicles Pvt.Ltd 848 1,082 Tata Motors Ltd 11,510 7,023 Total 14,914 12,895 (b) Max. Mass not exceeding 2 but no exceeding 3.5 tons-Pick Ups Force Motors Ltd 481 669 Hindustan Motors Ltd 49 20 Mahindra & Mahindra Ltd 5,926 7,504 Tata Motors Ltd 4,362 13,575 Total 10,818 21,768 (a) Max Mass exceeding 3.5 tons but not exceeding 6 tonnes Force Motors Ltd 141 162 Mahindra & Mahindra Ltd 0 0 Mahindra Navistar Automotives Ltd 532 590 SML Isuzu Ltd 3 14 Tata Motors Ltd 1,997 3,499 VE CVs - Eicher 40 68 Total 2,713 4,333 (b) Max Mass exceeding 6 tons but not exceeding 7.5 tonnes Ashok Leyland Ltd 0 0 Force Motors Ltd -2 0 Mahindra Navistar Automotives Ltd 8 19 SML Isuzu Ltd 89 130 Tata Motors Ltd 262 387 VE CVs - Eicher 366 652 Total 723 1,188 Total LCVs (Goods Carriers) 29,168 40,184 32,589 44,846 Total LCVs Total Commercial Vehicles 59,342 76,438 IV Two Wheelers A: Scooter/Scooterettee : Wheel size less than or equal to 12” A1: Engine Capacity less than 75cc Mahindra Two Wheelers Ltd 835 504 TVS Motor Company Ltd 1,489 2,016 Total 2,324 2,520 A2: Engine Capacity 75cc and above but less than 125cc Bajaj Auto Ltd 0 0 Hero Honda Motors Ltd 28,153 33,705 Honda Motorcycle & Scooter India (Pvt) Ltd 75,010 99,339 Mahindra Two Wheelers Ltd 12,931 16,621 Suzuki Motorcycle India Pvt Ltd 15,260 22,284 TVS Motor Company Ltd 39,587 47,969 Total 170,941 219,918 Total Scooter/Scooterettee 173,265 222,438 B: Motor cycles/Step-Throughs : Big Wheel size more than 12” B2: Engine Capacity 75cc and above but less than 125cc Bajaj Auto Ltd 155,155 174,041 Hero Honda Motors Ltd 387,442 449,816 Honda Motorcycle & Scooter India (Pvt) Ltd 13,575 10,086 India Yamaha Motor Pvt Ltd 9,725 6,979 TVS Motor Company Ltd 53,346 52,830 Total 619,243 693,752 B3: Engine Capacity 125cc and above but less than 250cc Bajaj Auto Ltd 139,946 163,259 Hero Honda Motors Ltd 27,632 31,469 Honda Motorcycle & Scooter India (Pvt) Ltd 42,532 48,772 India Yamaha Motor Pvt Ltd 24,720 33,324 Suzuki Motorcycle India Pvt Ltd 4,039 4,484 TVS Motor Company Ltd 21,213 25,277 Total 260,082 306,585 B4: Engine capacity 250cc and above Bajaj Auto Ltd 0 0 H-D Motor Company India pvt Ltd 0 45 Honda Motorcycle & Scooter India (Pvt) Ltd 0 2,541 India Yamaha Motor Pvt Ltd 0 0 Royal Enfield (Unit of Eicher Ltd) 3,820 6,907 Total 3,820 9,493 Total Motor Cycles/Step-Throughs 883,145 1,009,830 C: Mopeds: Engine capacity less than 75cc & with fixed transmission, big wheelsize>12” Engine Capacity<75cc Mopeds TVS Motor Company Ltd 60,112 62,142 Total 60,112 62,142 60,112 62,142 Total Mopeds Total Two Wheelers 1,116,522 1,294,410 III Three Wheelers A: Passenger Carriers A1:No. of seats including driver not exceeding 4 & Max.Mass not exceeding 1 tonnes Atul Auto Limited 955 1,107 Bajaj Auto Ltd 39,933 44,044 Force Motors Ltd 0 0 Mahindra & Mahindra Ltd 3,718 4,547 Piaggio Vehicles Pvt.Ltd 14,086 12,897 Scooters india Ltd 253 450 TVS Motor Company Ltd 3,505 5,050 Total 62,450 68,095 A2: No.of seats including Driver exceeding 4 but not exceeding 7 & Max.Mass exceeding 1.5 tonnes Force Motors Ltd 0 84 Mahindra & Mahindra Ltd 422 0 Scooters india Ltd 324 240 Total 746 324 Total Passenger Carrier 63,196 68,419 B: Goods Carriers B1: Max.mass not exceeding 1 tonnes Atul Auto Limited 740 879 Bajaj Auto Ltd 300 674 Mahindra & Mahindra Ltd 1,110 1,360 Piaggio Vehicles Pvt.Ltd 4,790 4,816 Scooters india Ltd 260 481 Total 7,200 8,210 B2: Others Force Motors Ltd 0 0 Mahindra & Mahindra Ltd 395 350 Piaggio Vehicles Pvt.Ltd 0 44 Scooters india Ltd 217 229 Total 612 623 Total Goods Carrier 7,812 8,833 Total Three Wheelers 71,008 77,252 Grand Total of all Categories 1,493,018 1,682,193

3,737 10,225 17,896

5,128 12,522 21,421

782 2,297 3,941

882 3,170 5,092

3,891 11,413 19,282

4,715 14,689 23,725

17 289 396

25 122 206

96 940 1,451

71 688 1,180

8,571 1 18,381 1,255 28,208

9,142 8 24,503 2,341 35,994

1,373 0 2,618 232 4,223

1,546 1 3,629 448 5,624

6,233 0 14,398 1,007 21,638

7,003 8 13,865 1,704 22,580

351 0 574 73 998

398 0 603 50 1,051

1,358 0 2,077 246 3,681

1,992 0 2,695 316 5,003

11,172 2,019 233 23,022 251 1 36,698

6,708 4,124 287 22,808 477 0 34,404

1,848 425 17 4,304 49 1 6,644

1,523 785 89 3,608 60 0 6,065

9,906 1,942 36 22,317 293 12 34,506

6,455 3,621 373 19,723 416 0 30,588

0 0 0 281 0 0 281

80 0 0 100 0 0 180

0 0 0 1,032 4 0 1,036

411 0 0 756 0 0 1,167

4,469 54 143 3 17,223 122 375 22,389 59,087

5,124 213 55 194 25,205 494 241 31,526 65,930

632 22 23 0 1,852 29 74 2,632 9,276

850 48 32 70 3,300 94 24 4,418 10,483

3,728 48 83 0 9,390 147 311 13,707 48,213

4,588 165 49 351 16,654 450 120 22,377 52,965

0 0 0 0 11 0 0 11 292

0 0 0 0 9 0 0 9 189

0 0 0 0 195 0 0 195 1,231

0 0 0 0 93 0 0 93 1,260

0 0

41 41

0 0

298 298

0 0

1,402 0 1,402

1,127 0 1,127

336 844 1,180

146 643 789

1,464 3,320 4,784

938 3,544 4,482

11 0 11

13 0 13

20 0 20

51 0 51

2 239 0 241

0 309 108 417

2 35 0 37

0 70 24 94

2 201 0 203

0 265 103 368

5 0 0 5

0 0 0 0

5 0 0 5

0 0 0 0

1,164 118 0 16 1,298

747 97 619 74 1,537

249 36 970 0 1,255

166 7 1,052 2 1,227

1,142 127 4,252 32 5,553

785 69 4,730 42 5,626

5 0 0 0 5

0 0 0 0 0

15 0 0 0 15

0 0 1 0 1

947 71 1,018 3,959 109,150 131,575

612 112 724 3,805 127,150 148,714

127 14 141 2,613 20,053 24,992

121 16 137 2,247 23,446 27,401

777 65 842 11,382 100,515 120,977

652 94 746 11,222 110,492 129,531

0 0 0 62 1,748 2,800

0 0 0 13 1,459 2,111

0 0 0 338 6,701 10,291

0 0 0 52 7,495 10,943

3,444 1,436 1,705 6,585

4,189 930 2,661 7,780

633 231 417 1,281

840 251 502 1,593

3,278 1,393 2,516 7,187

4,005 1,075 2,464 7,544

22 0 20 42

15 0 15 30

46 0 155 201

52 0 106 158

501 126 0 1,061 1,420 6,587 1,343 11,038

779 22 0 1,495 1,482 7,860 1,689 13,327

53 12 0 53 229 903 188 1,438

36 2 0 112 308 1,065 243 1,766

326 108 0 1,001 1,341 6,487 1,245 10,508

193 40 0 1,271 1,362 5,929 1,655 10,450

1 0 0 0 6 326 18 351

46 0 0 0 0 416 0 462

62 0 2 0 21 848 195 1,128

151 0 0 0 15 1,572 47 1,785

1,899 0 560 2,459 20,082

2,511 2 407 2,920 24,027

391 0 136 527 3,246

468 0 219 687 4,046

1,874 0 720 2,594 20,289

2,420 0 951 3,371 21,365

0 0 0 0 393

0 0 0 0 492

0 0 40 40 1,369

5 0 3 8 1,951

743 13,787 4,585 55,515 74,630

692 22,626 5,412 73,714 102,444

94 2,865 706 11,694 15,359

13 4,232 1,100 14,610 19,955

582 13,179 3,885 50,260 67,906

237 20,613 5,187 67,534 93,571

0 0 0 992 992

0 655 0 1,033 1,688

2 185 6 7,473 7,666

0 1,530 6 8,975 10,511

1,862 232 29,014 8,799 39,907

2,103 118 33,510 20,916 56,647

457 21 4,668 724 5,870

570 15 5,907 2,035 8,527

1,807 202 24,401 4,550 30,960

2,263 90 27,468 8,042 37,863

0 0 967 700 1,667

28 0 759 1,007 1,794

2 0 3,395 1,371 4,768

28 20 4,743 1,936 6,727

581 0 2,076 5 10,506 505 13,673

626 0 2,065 25 14,046 682 17,444

149 0 534 2 1,601 55 2,341

132 0 575 13 2,570 64 3,354

596 0 2,079 4 9,419 414 12,512

594 0 1,992 24 11,279 667 14,556

0 1 0 0 240 5 246

1 0 0 0 411 1 413

4 64 0 0 1,328 15 1,411

2 87 0 0 2,647 50 2,786

24 0 53 400 2,031 1,855 4,363 132,573 152,655 284,230

0 0 112 571 2,867 2,604 6,154 182,689 206,716 355,430

0 0 6 57 279 244 586 24,156 27,402 52,394

0 0 14 113 420 418 965 32,801 36,847 64,248

0 0 69 276 1,527 1,223 3,095 114,473 134,762 255,739

0 0 65 412 2,117 1,787 4,381 150,371 171,736 301,267

0 0 0 30 24 67 121 3,026 3,419 6,219

0 0 0 34 44 129 207 4,102 4,594 6,705

0 0 0 130 197 323 650 14,495 15,864 26,155

0 0 0 108 401 584 1,093 21,117 23,068 34,011

5,339 7,844 13,183

1,623 8,017 9,640

1,036 1,600 2,636

572 1,788 2,360

4,912 10,016 14,928

2,270 7,850 10,120

0 0 0

6 0 6

0 0 0

6 0 6

0 129,089 383,504 58,818 83,975 165,699 821,085 834,268

0 176,161 423,134 61,785 112,749 202,855 976,684 986,324

0 26,588 74,405 14,061 15,153 37,571 167,778 170,414

0 28,924 97,860 14,548 22,145 46,913 210,390 212,750

27 123,397 376,603 49,290 83,884 159,803 793,004 807,932

0 160,482 413,483 58,119 112,654 196,454 941,192 951,312

0 1,120 1,398 180 0 1,742 4,440 4,440

0 3,248 1,253 77 0 3,552 8,130 8,136

0 6,048 5,964 678 89 6,937 19,716 19,716

0 14,610 7,300 462 90 14,805 37,267 37,273

775,532 1,858,531 82,478 34,852 264,956 3,016,349

868,862 2,226,514 77,051 30,111 228,752 3,431,290

96,693 359,853 12,646 6,913 37,586 513,691

94,361 432,839 8,211 5,054 41,361 581,826

505,724 1,787,869 77,430 33,011 191,465 2,595,499

491,152 2,155,096 61,229 24,134 196,749 2,928,360

54,394 9,454 916 392 8,160 73,316

70,723 8,198 1,900 491 9,424 90,736

273,338 43,433 7,446 4,442 45,335 373,994

382,097 44,985 15,456 3,842 54,873 501,253

616,215 127,725 223,466 98,361 14,063 96,574 1,176,404

727,663 148,690 238,723 166,006 27,472 138,348 1,446,902

112,874 26,721 38,499 15,757 4,181 12,044 210,076

132,188 29,357 43,894 24,876 4,003 14,825 249,143

462,102 120,244 201,272 68,173 13,795 54,267 919,853

560,880 144,418 215,610 115,809 23,275 63,321 1,123,313

25,215 881 4,593 7,386 3 8,784 46,862

40,772 1,088 5,094 9,065 731 12,116 68,866

156,184 5,351 23,369 32,675 448 36,916 254,943

185,043 4,676 22,003 43,734 2,863 48,004 306,323

0 0 0 0 21,359 21,359 4,214,112

20 90 9,175 0 32,204 41,489 4,919,681

0 0 9 2 3,764 3,775 727,542

10 52 2,373 4 6,364 8,803 839,772

0 0 15 19 20,169 20,203 3,535,555

28 101 8,964 51 30,299 39,443 4,091,116

0 0 0 0 97 97 120,275

0 0 0 0 270 270 159,872

0 0 1,247 1,247 630,184

0 0 1,340 1,340 808,916

283,194 283,194 283,194 5,331,574

326,279 326,279 326,279 6,232,284

59,280 59,280 59,280 957,236

58,818 58,818 58,818 1,111,340

277,566 277,566 277,566 4,621,053

315,423 315,423 315,423 5,357,851

342 342 342 125,057

1,387 1,387 1,387 169,395

3,951 3,951 3,951 653,851

4,084 4,084 4,084 850,273

3,563 171,213 0 15,238 58,909 1,687 14,912 265,522

5,089 210,601 0 19,038 57,947 2,192 19,856 314,723

944 20,989 0 3,389 13,212 425 2,409 41,368

1,131 17,325 0 4,705 11,461 406 1,188 36,216

3,542 77,609 5 14,923 53,707 1,559 10,233 161,578

5,004 74,683 4 18,060 50,794 1,789 4,845 155,179

18 18,897 0 180 1,014 0 1,217 21,326

0 26,730 0 276 1,536 0 3,505 32,047

62 99,575 0 740 5,636 0 4,300 110,313

80 142,445 0 1,470 7,168 0 14,562 165,725

84 908 1,070 2,062 267,584

217 0 1,127 1,344 316,067

1 422 256 679 42,047

0 0 266 266 36,482

26 739 975 1,740 163,318

0 209 1,113 1,322 156,501

42 0 0 42 21,368

84 0 0 84 32,131

84 0 0 84 110,397

252 0 0 252 165,977

3,519 1,668 5,596 22,686 1,724 35,193

4,803 3,030 6,819 25,091 2,601 42,344

766 230 877 4,752 425 7,050

921 630 1,276 4,958 496 8,281

3,497 1,382 5,281 22,424 1,578 34,162

4,764 2,938 5,649 24,712 2,166 40,229

0 72 10 42 0 124

0 0 76 74 0 150

2 174 134 423 0 733

16 0 386 358 0 760

15 1,834 0 963 2,812 38,005 305,589 7,072,966

0 2,157 80 1,079 3,316 45,660 361,727 8,198,905

6 386 0 248 640 7,690 49,737 1,263,239

0 413 0 267 680 8,961 45,443 1,412,945

103 1,717 0 958 2,778 36,940 200,258 6,035,696

0 1,929 0 1,062 2,991 43,220 199,721 6,836,040

0 0 0 0 0 124 21,492 189,578

0 0 48 0 48 198 32,329 258,071

0 0 0 0 0 733 111,130 971,027

0 0 84 0 84 844 166,821 1,271,361

Auto Monitor

1-15 October 2011

EUROPEAN SALES

New Vehicle Registration in 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 Daimler Mercedes Smart Other Total Fiat Alfa Romeo Fiat Iveco Lancia Other Total Ford Ford Mercury Other Total GM Chevrolet Opel 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 SAAB Volvo Other Total 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 Daimler Mercedes Smart Other Total Fiat Alfa Romeo Fiat Iveco Lancia Other Total Ford Ford Mercury Other Total GM Chevrolet

2011 JUNE 151 63736 18421 32 82189

2010 JUNE

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

% CHANGE

YEAR TILL DATE 2011

-38.37 -3.13 26.30 -50.77 2.17

1226 337155 85895 267 423317

GROUP

BRAND Opel Other Total Jaguar Land Rover Total Daihatsu Honda Mazda Mitsubishi Nissan Subaru Suzuki Other Total Daewoo Hyundai KIA Other Total MAN Rover Porsche Citroen Peugeot Total Dacia Renault Total Scania Toyota Lexus Total Audi Seat Skoda Volkswagen Other Total SAAB Volvo Other Total

2011 JUNE 102755 16 120160 1879 4718 6597 1028 11612 13431 9356 40425 2229 14787 133 93001

-100.00 -36.17

2 1245

0 0 60 434 185 2360 2979 2983 75569 7897 178 83644 13029 87411 7277 9027 296 117040 119905 0 0 119905 17406 110981 32 128419 1879 5670 7549 1029 11615 13576 11389 44580 2237 14872 999 100297

245 65792 14585 65 80442 0 3 94 0 1 4 102 1279 1648 1434 4361 2762 78865 8666 99 87630 10464 96538 8248 8953 553 124756 121313

-100.00 -100.00 -41.18 -66.07 -88.77 64.57 -31.69 8.00 -4.18 -8.87 79.80 -4.55 24.51 -9.45 -11.77 0.83 -46.47 -6.18 -1.16

2 121315 17513 122783 205 140501 2832 6951 9783 1908 18929 18554 12703 46650 3957 17352 1357 121410

-1.16 -0.61 -9.61 -84.39 -8.60 -33.65 -18.43 -22.84 -46.07 -38.64 -26.83 -10.34 -4.44 -43.47 -14.29 -26.38 -17.39

6 8 1261 3573 2137 11120 16830 19172 404819 44120 1118 450057 78644 504662 46264 52184 2499 684253 696811 2 5 696818 92354 598150 573 691077 11374 43401 54776 7210 81410 80558 78288 276289 21704 98279 9313 653051

36729 25982 488 63199 4124 29 4153

33640 23542 875 58057 3706 26 3732

9.18 10.36 -44.23 8.86 11.28 11.54 11.28

209562 140971 3479 354012 25604 183 25787

3686 91362 106497 197859 23988 120348 10 144346 2735 42376 1670 44046 64482 29172 47190 164756 146 305746 3410 779 24148 6434 31361 1445757

3776 103006 117050 220056 31030 147487 28 178545 2402 59582 1858 61440 59327 30089 46231 170972 181 306800 2972 2211 22397 4795 29403 1560490

-2.38 -11.30 -9.02 -10.09 -22.69 -18.40 -64.29 -19.15 13.86 -28.88 -10.12 -28.31 8.69 -3.05 2.07 -3.64 -19.34 -0.34 14.74 -64.77 7.82 34.18 6.66 -7.35

21131 531719 613363 1145082 137926 718113 35 856074 17038 307492 13504 320996 360378 165353 263630 987587 1067 1778015 21146 11247 138433 27263 176943 8408062

151 63720 18418 32 82170

-38.37 -3.11 26.28 -50.77 2.18

1226 336922 85885 267 423074

-100.00 -73.33

2 563

0 0 4 430 156 2265 2851

245 65768 14585 65 80418 0 3 15 0 1 4 23 1227 1565 1326 4118

-100.00 -100.00 -82.61 -64.96 -90.03 70.81 -30.77

6 8 579 3089 1678 10675 15442

58694 7897

61379 8666

-4.37 -8.87

302200 44119

LCV-Light Commercial Vehicles up to 3.5t ** BMW BMW 19 Mini Total China Great Wall 56 Chrysler Chrysler 4 Dodge 28 JEEP 95 Total 127 DAF DAF Daimler Mercedes 11263 Fiat Alfa Romeo 22 Fiat 17118 Iveco 4225 Lancia 2 Total 21367 Ford Ford 15969 Other Total GM Chevrolet 15 Opel 8167 SAAB Other 16 Total 8198 Jaguar Land Rover Jaguar Land Rover 952 Japan Daihatsu 1 Honda 3 Mazda 145 Mitsubishi 1806 Nissan 4090 Subaru 8 Suzuki 85 Other 714 Total 6852 Korea Daewoo Hyundai 336 KIA 78 Other 18 Total 432 Porsche Porsche 7 PSA Citroen 16218 Peugeot 15916 Total 32134 Renault Dacia 1095 Renault 21365 Total 22460 Toyota Toyota 2540 Volkswagen AG Audi 106 Seat 151 Skoda 247 Volkswagen 16613 Total 17117 Other Volvo 40 Other 1813 Total 1853 Total 141346

66591 13007 69902 5 9025 296 92235 103687 0 0 103687 17389

70045 10445 80681 94 8948 552 100720 105081

-4.93 24.53 -13.36 -94.68 0.86 -46.38 -8.42 -1.33

2 105083 17479

-100.00 -1.33 -0.51

346319 78516 397137 335 52172 2499 530659 598092 2 5 598099 92194

LBC- Light Buses & Coaches upto 3.5 tn Daimler Mercedes Fiat Fiat Iveco Total Ford Ford GM Opel Chevrolet Total Japan Nissan Toyota Total

0 60

0 4

Jaguar Land Rover

Japan

Korea

MAN MG Rover Porsche PSA

Renault

Scania Toyota

Volkswagen AG

Other

Total

2010 JUNE 115459 193 133131 2832 6324 9156 1908 18923 18360 10076 41960 3953 17261 206 112647

% CHANGE -11.00 -91.71 -9.74 -33.65 -25.40 -27.95 -46.12 -38.64 -26.85 -7.15 -3.66 -43.61 -14.33 -35.44 -17.44

YEAR TILL DATE 2011 550150 472 642816 11371 36737 48108 7189 81381 79337 64719 246965 21633 97809 1919 600952

36390 25904 470 62764

33161 23452 827 57440

9.74 10.46 -43.17 9.27

207432 140417 3246 351095

3679 75137 90545 165682 22893 96450 119343

3761 86665 101641 188306 29213 121024 150237

-2.18 -13.30 -10.92 -12.01 -21.63 -20.31 -20.56

20970 437647 521459 959106 130365 570689 701054

39816 1670 41486 64376 29021 46943 147873 146 288359 779 24108 2618 27505 1276265

56123 1857 57980 59063 29966 45861 154921 181 289992 2210 22362 2265 26837 1390141

-29.06 -10.07 -28.45 9.00 -3.15 2.36 -4.55 -19.34 -0.56 -64.75 7.81 15.58 2.49 -8.19

286647 13501 300148 359614 164507 261771 886193 1067 1673152 11247 138104 11347 160698 7373503

-20.83

243

79 52 83 108 243

-29.11 -92.31 -66.27 -12.04 -47.74

682 483 452 445 1380

11533 19 15480 4837 5 20342 15827

-2.34 15.79 10.58 -12.65 -60.00 5.04 0.90

66660 128 104886 26228 12 131254 97065

33 7314

-54.55 11.66

153 47707

11 7358

45.45 11.42

98 47958

627 0 6 192 2322 4605 4 91 978 8198 479 90 48 617 15 16317 15359 31676 1817 24338 26155 3426 264 122 370 15685 16441 1 35 1114 1150 143713

51.83 -50.00 -24.48 -22.22 -11.18 100.00 -6.59 -26.99 -16.42 -100.00 273.33 62.50 -97.08 2780.00 -99.96 5.59 -49.75 1668.52 -95.50 -18.31 555.58 862.12 -13.11 -59.19 -98.43 1.05 1711600.00 14.29 62.75 61.13 -1.65

6668 21 29 1221 12182 28907 71 469 6393 49293 2122 554 233 2909 161 94010 91651 185661 7561 132316 139877 20715 764 845 1851 99841 103301 329 7356 7685 861512

75 19 42 61 61 44

170 28 6 34 36 6

-55.88 -32.14 600.00 79.41 69.44 633.33

452 183 126 309 446 216

-100.00

1-15 October 2011

GROUP Korea

PSA

Renault Volkswagen AG

Other

BRAND Hyundai Kia Other Total Citroen Peugeot Total Renault Audi Seat Skoda Volkswagen Total Dodge Other Total

2011 JUNE

2010 JUNE

% CHANGE

YEAR TILL DATE 2011

0 1 1 31

2 3 5 69

-100.00 -66.67 -80.00 -55.07

10 8 18 153

123

128

-3.91

660

GROUP GM Japan

MAN

PSA

143 543

Total Light Commercial Vehicles up to 3.5t (LCV+LBC) BMW BMW 19 Mini Total China Great Wall 56 Chrysler Chrysler 4 Dodge 28 JEEP 95 Total 127 DAF DAF Daimler Mercedes 11338 Fiat Alfa Romeo 22 Fiat 17137 Iveco 4267 Lancia 2 Total 21428 Ford Ford 16030 Other Total GM Chevrolet 15 Opel 8211 SAAB Other 16 Total 8242 Jaguar Land Rover Jaguar Land Rover 952 Japan Daihatsu 1 Honda 3 Mazda 145 Mitsubishi 1806 Nissan 4090 Subaru 8 Suzuki 85 Other 714 Total 6852 Korea Daewoo Hyundai 339 KIA 78 Other 18 Total 435 Porsche Porsche 7 PSA Citroen 16218 Peugeot 15917 Total 32135 Renault Dacia 1095 Renault 21396 Total 22491 Toyota Toyota 2541 Volkswagen AG Audi 106 Seat 151 Skoda 247 Volkswagen 16736 Total 17240 Other Volvo 40 Other 1956 Total 1996 Total 141889 CV-Commercial Vehicles (trucks) over 3.5t ** China Other Chrysler Other 1 DAF DAF 2935 Daimler Mercedes 5042 Fiat Fiat 340 Iveco 2561 Total 2901 Ford Ford 39 GM Chevrolet 2 Opel 14 Other 0 Total 16 Japan Mitsubishi 227 Nissan 65 Other 151 Total 443 Korea Daewoo MAN MAN 3910 PSA Citroen 6 Peugeot 32 Total 38 Renault Renault 2478 Other 10 Total 2488 Scania Scania 2610 Toyota Toyota 19 Volkswagen AG Volkswagen 123 Volvo Trucks Volvo 3254 Other 1417 Total 25236 BC-Buses & Coaches over 3.5t DAF DAF Daimler Mercedes Others Total Fiat Fiat Iveco Total Ford Ford

Auto Monitor

EUROPEAN SALES

48 495 178 673 32 444 476 149

144 594

-0.69 -8.59

843 3115

-20.83

243

79 52 83 108 243

-29.11 -92.31 -66.27 -12.04 -47.74

682 483 452 445 1380

11703 19 15508 4843 5 20376 15863

-3.12 15.79 10.50 -11.89 -60.00 5.16 1.05

67112 128 105069 26354 12 131563 97511

33 7320 1 11 7364

-54.55 12.17 -100.00 45.45 11.92

153 47923

627 0 6 192 2322 4606 4 91 978 8199

51.83 -50.00 -24.48 -22.22 -11.20 100.00 -6.59 -26.99 -16.43

6668 21 29 1221 12182 28912 71 470 6393 49299

479 90 48 617 15 16319 15362 31681 1817 24407 26224 3427 264 123 370 15812 16569 35 1258 1294 144307

-29.23 -13.33 -62.50 -29.50 -53.33 -0.62 3.61 1.43 -39.74 -12.34 -14.24 -25.85 -59.85 22.76 -33.24 5.84 4.05 14.29 55.48 54.25 -1.68

2129 554 233 2916 161 94020 91659 185679 7561 132469 140030 20720 764 846 1859 100492 103961 329 8199 8528 864627

0 2736 5146 321 2807 3128 61 1 2 1 4 305 83 162 552

7.27 -2.02 5.92 -8.76 -7.26 -36.07 100.00 600.00 -100.00 300.00 -25.57 -21.69 -6.79 -19.75

8 18938 32221 2203 16311 18514 278 6 75 3 84 1387 412 991 2790

3449 22 37 59 2027 28 2055 2166 33 212 2573 684 22858

13.37 -72.73 -13.51 -35.59 22.25 -64.29 21.07 20.50 -42.42 -41.98 26.47 107.16 10.40

24351 42 183 225 14835 35 14870 16319 128 767 20002 4685 154181

26 637 99 736 28 504 532 308

84.62 -22.29 79.80 -8.56 14.29 -11.90 -10.53 -51.62

234 3288 1117 4405 253 3264 3517 930

98 48174

Renault Scania Volkswagen Volvo Trucks Others Total

BRAND Chevrolet Opel Nissan Mitsubishi Toyota Others Total MAN Others Total Citroen Peugeot Total Renault Scania Volkswagen Volvo

2011 JUNE 1

% CHANGE -50.00

YEAR TILL DATE 2011 3

-91.67

214 29 243 1 3 4 24 125 24 156 443 2367

253 26 279 0 10 10 29 236 27 399 588 3184

-15.42 11.54 -12.90 -70.00 -60.00 -17.24 -47.03 -11.11 -60.90 -24.66 -25.66

1247 183 1430 10 62 72 120 719 135 1144 3032 15751

0 2762 5783 99 5882 349 3311 3660 369 1 4 1 6 305 84 173 564

8.00 -4.25 79.80 -2.84 6.59 -9.24 -7.73 -49.05 100.00 275.00 -100.00 183.33 -25.57 -22.62 -12.14 -21.28

8 19172 35508 1118 36626 2456 19575 22031 1208 7 77 3 87 1387 412 1001 2800

3702 26 3728 22 47 69 2056 28 2084 2402 33 239 2972 1272 26042

11.40 11.54 11.40 -68.18 -25.53 -39.13 21.69 -64.29 20.54 13.86 -42.42 -38.49 14.74 46.23 5.99

25598 183 25781 52 245 297 14955 35 14990 17038 128 902 21146 7717 169932

2342 2839 1170

9.86 15.22 0.77

16561 20853 7649

11 2571 1494 4 1498 2154 2425 275 15285

27.27 13.77 28.78 150.00 29.11 21.17 27.59 -1.82 16.91

85 18099 11891 31 11922 16313 19081 1551 112115

43 264 178 442 325 204 29 233

16 403 99 502 315 172 26 198

168.75 -34.49 79.80 -11.95 3.17 18.60 11.54 17.68

203 1791 1117 2908 2434 1151 183 1334

125 156 272 1596

236 399 384 2050

-47.03 -60.90 -29.17 -22.15

719 1144 1935 10677

10.94 9.04 79.80 11.13 1.28

16764 22643 1118 23761 10083

Total Commercial Vehicles (Trucks) & (Buses) over 3.5t China Other Chrysler Other 1 DAF DAF 2983 Daimler Mercedes 5537 Others 178 Total 5715 Fiat Fiat 372 Iveco 3005 Total 3377 Ford Ford 188 GM Chevrolet 2 Opel 15 Others 0 Total 17 Japan Mitsubishi 227 Nissan 65 Others 152 Total 444 Korea Daewoo Hyundai Total MAN MAN 4124 Others 29 Total 4153 PSA Citroen 7 Peugeot 35 Total 42 Renault Renault 2502 Others 10 Total 2512 Scania Scania 2735 Toyota Toyota 19 Volkswagen AG Volkswagen 147 Volvo Trucks Volvo 3410 Others 1860 Total 27603 HCV-Heavy Commercial Vehicles (trucks) over 16t ** China Other DAF DAF 2573 Daimler Mercedes 3271 Fiat Iveco 1179 Ford Ford GM Chevrolet Japan Other 14 MAN MAN 2925 Renault Renault 1924 Other 10 Total 1934 Scania Scania 2610 Volvo Trucks Volvo 3094 Others 270 Total 17870 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

2010 JUNE 2

Total Heavy Commercial Vehicles (Trucks & Buses) over 16t China Other DAF DAF 2616 2358 Daimler Mercedes 3535 3242 Other 178 99 Total 3713 3341 Fiat Iveco 1504 1485 GM Chevrolet Japan Others 14 11 Total MAN MAN 3129 2743 Others 29 26 Total 3158 2769 Renault Renault 1924 1494 Other 10 4 Total 1934 1498 Scania Scania 2735 2390 Volvo Trucks Volvo 3250 2824 Others 542 659 Total 19466 17335

27.27

14.07 11.54 14.05 28.78 150.00 29.11 14.44 15.08 -17.75 12.29

19250 183 19433 11891 31 11922 17032 20225 3486 122792

*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

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Getting Personal with Santanoo Medhi, Managing Director, Kennametal lndia If not in the industry, where would you be? I’d be a Cordon Bleu Master Chef touring the world with my own travel / food show What car do you drive? What do you dream of driving? I presently own a Skoda Laura and a Honda City. If you ask me what I’d like to see in my garage, it’s a Lexus 450H to drive to work, go shopping and those sorts of things, a BMW Z5 for the sheer joy of driving and a Suzuki Hayabusa GSX-1300R motorbike for that once in a while, “eat my dust” ride Your most recent indulgence… I have just bought a Canon D60 DSLR camera with telephoto lenses—70-300 mm and 15-70 mm. Haven’t stopped clicking since then What are you currently reading? I am reading two books presently: ‘The Big Short’ by Michael Lewis—a book on the recent fi nancial crisis and what caused it. It’s fascinating to get the inside story from a Wall Street insider, no less. ‘The Difficulty Of Being Good’ by Gurcharan Das : a most interesting study of the characters in the Mahabharata What is Mr Medhi doing when not talking about the industry? Reading a book, whipping up some great stuff in the kitchen, holding forth about life in general, and, of course, hopping the hippest bars for the fi nest single malts Outdoor activity you would miss office for… Capturing the great outdoors on camera… I’m a pretty inveterate photographer!

1 - 15 October 2011

In Person Santanoo Medhi, Managing Director, Kennametal lndia, is a business leader of diverse ability and rich cross-cultural and multi-disciplinary experience. He leverages his redoubtable career path that spans several countries and functions including manufacturing, sales, marketing, business development and general management. hanical Medhi earned a Bachelors Degree in Mechanical Engineering from the Regional Engineering College, ee in Industrial Calicut, India and thereafter a Masters Degree an Institute of Engineering and Management from the Asian ds a Diploma Technology, Bangkok, Thailand. He also holds rsity of Science in Management from the Hong Kong University and Technology. he printed A voracious reader, Santanoo’s taste for the or manageword is wide but with a special preference for d is fond of ment books. He is an inveterate traveler and ust seven exploring new places and cultures. He has just n of visitmore countries to visit to fulﬁll his ambition ing 50 countries by the age of 50. Santanoo iss also an accomplished chef and enjoys exercising hiss culinary skills in the kitchen. He has a philanthropic bent of mind and is hapee piest when spending time with his wife Raakhee n and son Anshuman. Both share his altruism in nt equal measure and family devotes a signiﬁcant amount of its free time in charitable causes.

Where did you go for your last holiday? I was in Europe, touring the lands of pasta, cheese and wine, that’s Italy, Switzerland and France You get angry when… People arrive late and show no respect for time. I am a stickler for punctuality and timeliness What is the one thing you would like to change about you? My ability, or rather, lack of any ability, to sing! I love music and if I was able to sing all the songs that I enjoy listening to, life would be all the more exciting! Best thing to have happened to you… I can’t pin down any one incident or achievement as the best thing that’s happened to me. Having said that, being able to travel 3,500 km from my home town and study engineering with the best brains in the country ranks right at the top of the list

Illustration: Sachin Pandit

An experience I won’t forget… One of my most unforgettable experiences happened fifteen years ago, in 1996, when I was working in Bangkok. I was single and being an avid traveller, I spent my free time exploring Thailand. I used to go to the long distance bus stand, choose a destination and hop on to whichever bus was headed there. One day, I took a bus to Thong Pha Phum which is beyond Kanchanaburi (famous for the bridge on the river Kwai). It is a very small village at the border between Thailand and Myanmar. There is a dam close by and a beautiful wat (a Buddhist temple). The village was so beautiful and I was so engrossed in exploring, that I missed the last bus back to Bangkok. The village had no hotel and the locals informed me that the only place where I could spend the night was the temple. So I ended up staying at the temple. When the monks realised that that I was from India, the birthplace of Buddha, they were most delighted and took special care of me. I shared in their simple, but completely delicious, dinner after which they gave me a small pillow and a mattress. I spread this on the floor and had such a peaceful sleep that it felt like I was at home. The next morning I joined the monks in their morning prayers, which was another first for me. I also had an opportunity to explore the inner part of temple including the monk’s living quarters. For a busy, urban young man, it was both a peaceful and humbling experience.

Regn. No. MH/MR/WEST/20/2009-2011. RNI No. MAHENG/2000/11414 Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001. Date Of Mailing: 1st & 2nd Fortnightly Issue. Date Of Publication: 28th of Every Month