Auto Monitor - 1-15 September 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 Vol. 11 No. 16

w w w.amonl ine.in

1-15 September 2011

INTERVIEW “WE WANT TO MAKE OURSELVES ACCESSIBLE TO SMBs” Suman Bose, Managing Director India, Siemens PLM

Pg 8

64 Pages

` 50

AUTOPINION TRANSFER PRICING: CUSTOMS HARMONISATION: THE NEED OF THE HOUR

Pg 14

Rubber supply mismatch may hit proﬁtability

NEWS IN BRIEF Tata launches new Vista

ata Motors has recently launched the new version of its premium hatchback, the Tata Vista, which will be available at dealerships from September, 2011. The new vehicle comes with a redesigned front chrome grill, complemented with a new triple barrelled head lamp, for Tata Vista

better visibility in low-light conditions. It offers connectivity via USB, auxiliary input and bluetooth using the Blue 5 technology that helps pair up to five mobile phones. The vehicle is powered by 1.3-litre common rail direct injection quadrajet diesel engine and 1.4-litre MPFi Safire petrol engine with variable valve timing technology.

DATA MONITOR Domestic Top 5 PV-makers Sector

Jul-10

Jul-11

Change

MSIL

90,114

66,504

-26.20%

HMIL

28,811

25,642

-11.00%

TML

32,676

22,011

-32.64%

M&M ^

12,825

19,825

54.58%

Toyota

6,834

13,592

98.89%

Domestic Top 5 2W-makers Sector

Jul-10

Jul-11

Change

HML

414,571

477,714

15.23%

BAL

192,138

202,326

5.30%

TVS

143,039

160,348

12.10%

HMSI

130,720

141,789

8.47%

IYM

22,899

29,021

26.73%

Domestic Top 5 CV-makers Sector

Jun-10

Jun-11

Change

TML

30,883

36,298

17.53%

M&M

7,053

10,959

55.38%

ALL

6,022

6,774

12.49%

VECV Eicher

2,853

3,935

37.92%

FML

1,863

2,281

22.44%

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

Abhishek Parekh Mumbai

yre manufacturers have been wilting under the pressure of rising natural rubber prices adversely affecti ng profitability. Even as most tyre manufacturers have announced growth in sales in the last fi scal as well as the fi rst quarter of this fiscal, they are struggling to remain profitable. Apollo Tyres sees the gap between the growing demand for natural rubber and dwindling supplies to increase to ‘alarming’ proportions of around one million tonnes by year 2020, according to the company’s latest annual report. It further points out that the natural rubber market had been characterised by rising prices and a shortage in supply. The prices hit as high as $6,768 a tonne in February this year. The tightness is likely to last till 2018. A large number of today’s productive plantations had come up in the 1980s. Most of these will require massive uprooting and replanting between 2012 and 2018. Combined with this is the spectre of dramatic climate

change, where the past few years have seen unprecedented rains and even ﬂooding in the two largest natural rubber producing countries of Thailand and Indonesia. This is likely to lead to major demand supply mismatches in the coming months. The company is working on multiple fronts to address this situation. Apart from accelerating research to substitute natural rubber in the tyres, the company has also entered the area of rubber plantations to secure future sup-

plies. On the other hand, it is hopeful of making most of the upcoming demand for tyres with signiﬁcant capacities coming onstream t h is ca lenda r year. The company’s Chennai plant will reach its planned capacity towards the end of this year. The company’s annual report further points out that the June quarter saw India’s growth rate in passenger sales outstrip that of China. As China starts to slow down, India will take its preeminent position; not just in the automobile industry but across various sectors. The rising cost of raw materials has begun to bite most frontline tyre manufacturers even as demand continues to show robust growth across all vehicle segments. Ceat announced an operating loss of `25.04 crore for the quarter ended June 2011 as against `32.9

crore operating profit. The company net loss increased to `41.9 crore in the first quarter this fiscal as compared to `13.87 crore net profit in the first quarter in the last fiscal. The company standalone revenues for the last fiscal stood at `3,751.62 crore as against `2,989.98 crore in the previous fiscal. The operating profit in the last fiscal decreased to `106.73 crore as compared to `277.59 crore in the previous fiscal. The net profit decreased to `22.28 crore as compared to `161.03 crore in the previous fiscal. JK Tyres’ net sales grew to `1,401.67 crore in the fi rst quarter this fi scal as compared to `1,163.49 crore in the first quarter of last fiscal. The operating profit in the fi rst quarter reduced to `40.04 crore as compared to `50.8 crore in the first quarter, last fiscal. The net profit in turn went down to just under a crore rupees as against `19.53 crore in the first quarter last fiscal. It was similar story for the largest tyre manufacturer MRF, which announced net sales of `2,573 crore in the first quarter, this fiscal as compared to `1,925.4 crore but operating profit reduced to `140.3 crore as compared to `154.98 crore.

Lucas Indian Service ﬁrms up plans on car accessories T Murrali Chennai

ucas Indian Service (LIS), the specialised aftermarket player in sales and service of auto electrical and diesel injection equipment, is in the process of ﬁ rming up its plans for its retail business—Carplus dealing with car accessories. A couple of weeks ago, the company had opened a counter at a departmental store in Janakpuri in Delhi, which is yet another format of its retail business. The pilot project, introduced little over a year ago, in Gurgaon and Ludhiana catering to all classes of vehicles, has been receiving encouraging response and is trying out several options to reach out to the discerning customers. This initiative is expected to help the company to understand the customers’ expectations in terms of reach and convenience besides, the availability of the range of products.

Sandeep Abbi, President, LIS

President, Lucas Indian Service, Sandeep Abbi said, “This is a pilot project, an experiment to see how we can go about it in a big way. It is in the nascent stage and we are trying to understand the retail business. Opening a smaller format in the departmental store, is again a learning process to understand whether we should have standalone stores or be part of a mall or a departmental store. The idea is to offer completely unique and different buying experience to the customers.”

Currently, the two outlets are owned by the company. However, it might look at a franchise model also when it plans to expand in future. “We have a roadmap, which basically envisages us to look at about 120 outlets over a period of ﬁve to seven years,” he said. Carplus deals with the complete range of accessories right from infotainment to security systems, navigation, upholstery, interiors and exteriors. It also deals with different brands. Besides, t he retail out lets carry several services including anti-rust treatment, wheel balancing and such things. The two outlets have specific bays where the customers can see the work in progress from an air-conditioned lounge. The retail store also deals with tyres for passenger cars. Asked if LIS would extend a similar concept to two-wheelers, he says, “We may consider it at a later stage, but at this point

of time we would like to focus on passenger cars and multiutility vehicles.” LIS sees tremendous synerg ies a mongst d if ferent business divisions such as LucasTVS (auto electrical), DelphiT VS (diesel fuel injection system), Lispart (outsourced auto pa r ts) a nd Lucas (batteries, ignition coils and switches). The core business of the company is to provide sales and service to auto electrical components manufactured by Lucas-TVS and diesel injection systems made by Delphi-TVS. The company is also looking at expanding its product portfolio in the adjacent areas of business. Recently, it has tied up with a US lubricant company— Top1, to distribute the products all over the country except south India. The company has a network of over 2,000 dealers covering close to 700 towns and cities and deals in over 10,000 part numbers.

CONTENTS CORPORATE Product specific dealership network

Given the economic and cultural diversity in the country, it may be an opportune time for vehicle manufacturers to evaluate the feasibility of product specific dealerships

06 GLOBAL WATCH New piston ring coating improves fuel economy

Federal-Mogul’s CarboGlide coating delivers a direct improvement in fuel economy & emissions by reducing ring friction by up to 20 percent

Swedish regulator begins debt-collection process against Saab

Sweden’s Debt Enforcement Agency has started collection proceedings against Saab after the cash-starved carmaker failed to meet the deadline to pay two suppliers

New Maserati SUV to be built at Detroit Chrysler

The new Maserati SUV would build as an SUV off the same platform as the Jeep Grand Cherokee in Detroit

Toyota moves beyond quality crises

Toyota is planning to showcase the Prius+, a seven-seat version of its Prius hybrid car, at the upcoming Frankfurt auto show as it moves beyond quality issues

Lacklustre auto sales causing concerns among financiers`, dealers

Customers adopting a ‘wait and watch’ attitude and even down trading to smaller vehicles, is causing a concern among auto financiers and even auto dealers

Maruti Suzuki gears up for sales rebound

THE OTHER SIDE

Maruti Suzuki has created some excitement in the automobile market with the launch of the new version of Swift and claims to have registered over 50,000 bookings within ten days

Force Motors to offer lower variant of ‘Force One’

Force Motors is looking to offer ‘lighter’ loaded or stripped down variant of its recently launched SUV in lower price bracket with an eye at garnering volumes

Deloitte releases EV report for India market

The actual buyers of electric vehicles would be in the range of three to five percent by 2020, according to a report on released by Deloitte Touche Tohmatsu

Vehicle Recycling: An eco-friendly method of reusing car scrappage

Parakramsinh Jadeja, Chairman & Managing Director, Jyoti CNC Automation

Barely 20-years old when he established his company, Jadeja has designed and delivered a range of products that proved cutting-edge in the machine tools industry

A significant number of old vehicles, used for more than 15 to 20 years, are scrapped by the unorganised sector and is a cause of serious concern to the society at large

Talbros sets up two new plants, ramps up capacity

Talbros Group has set up two new plants one each in Pune and Orgadam near Chennai to meet the demands of its OEM and aftermarket business

of the fortnight

IMAGE

Mercedes-Benz India recently introduced roadster convertible SLK 350 at `61.9 lakh (ex-showroom, New Delhi). The carmaker has introduced Magic Sky Control panoramic vario-roof for the first time ever in the new generation SLK. The vehicle is equipped with a V6 engine and a capacity of 3.498 cc with a 306 HP output and 360 nm torque making its engine a force to reckon with. The car will be retailed through Mercedes-Benz dealerships across the country. The vehicle powered by 3.5-litre engine; yet implementing Blue efficiency measures which ensures optimal performance and environment compatibility. The car has also been awarded the Euro NCAP five-star Safety Ratings. Speaking on the occasion, Director Sales and Marketing, Mercedes-Benz India, Debashis Mitra, said, “The New SLK 350 is one of the most revolutionary products to come from the stable of Mercedes-Benz. Demonstrating the rich blend of sophistication with the latest in design and technology, the car is a testament to our continued endeavor to offer a thrilling experience to our customers.” Debashis Mitra, Director Sales & Marketing, Mercedes-Benz India at the launch of the new SLK introducing the Magic Sky technology

Auto Monitor

SLK 350 signs in to India at `61.9 lakh

Auto Monitor

1 - 15 September 2011

CORPORATE

Product speciﬁc dealership network Nabeel A Khan New Delhi

ata Motors recent ly announced plans to set up dedicated dealerships for its range of vehicles including the ‘micro’ car Nano, new generation utility vehicles like the Aria and the Safari as well as passenger cars. The company plans to set up 300 dedicated dealerships for the Nano (in addition to more ‘innovative’ sales outlets) and another 100 outlets for its utility vehicles (UVs), including the Aria and the Safari, by the end of this fi scal, according to a company official. Ashok Leyland-Nissan is evaluating setting up a dedicated dealership network for it recently launched LCV—the Dost. M&M already sells its SUV—the Scorpio—through a dedicated dealership network in certain locations and has established a separate network for its passenger car- Logan (now rechristened Logan Verito). Industry experts are of the opinion that given the economic and cultural diversity in the country, it may be an opportune time for vehicle manufacturers to evaluate the feasibility of product specific dealerships. The dedicated dealership network could provide a better connect with the customers and help dealers in targeting specific set of customers in specific locations depending on the economic, demographic and other social parameters. “In the global markets, you really don’t have such a huge difference in the big and small cars (or their customers) like we have in the Asian market. Also depending on the products, vehicle manufacturers

Tata Motors to assemble Nano overseas

have separate locations for the vehicle which are fast moving and others kind of vehicles. But I would see this (product segment-specific dealership) more relevant for the Indian conditions, looking at the diverse customer profi le here,” India Leader for Automotive Practice, PriceWaterhouseCoopers, Abdul Majeed told Auto Monitor. Tata Motors currently has around 250 odd full-range dealerships. After the dealership network restructuring exercise, the company would have three kinds of sales outlets catering to customers for the Nano, UVs and passenger cars. Few select dealers would continue to offer the complete range of its products/ models. Dedicated passenger car dealerships would be opened this fi scal, but the company is yet to decide on the number of such outlets. In the course of this fi scal, Tata Motors will transform some UV-specific dealerships and

full-vehicle range dealerships to passenger car sales outlets. Analysts are of the opinion that the change of course could have been driven by the ‘alarming’ fall in sales of its Nano. The company’s passenger vehicle sales dropped across categories, with sales of Nano declining by 64 percent to 3,260 units in July this year. The company posted a 14.30 per cent rise in commercial vehicle sales at 40,798 units in the domestic market. Industry players are of the opinion that it is no longer sufficient to have a good product/ model portfolio. Growing competition and widening model line up implies that the vehicle manufacturers also needs to communicate to the customer, offer products at suitable locations and gain confidence of the customer. India is a huge country with rural pockets, urban pockets with diverse set of customers within these pockets of scarcity and affluence.

CMD, Carnation and Former MD, Maruti Suzuki, Jagdish Khattar observes, “This is something new and let’s see how it works. I don’t know if they (Tata Motors) will also have dedicated after-sales service. Yet, I think a dedicated dealership may help in spiking up the sales.” It is felt that a dealership having premium as well as other sorts of products, all under one roof, will divert attention of the customers while having one segment product range can help the dealership to offer the customer right product. However, not every player is yet falling for this gameplan. Maruti Suzuki does not buy this opinion that dedicated dealerships can gain additional customers or help serve customers in more focussed manner. “We don’t see much viability of having product or segment-speciﬁc dealership”, Chief General Manager (Marketing), Maruti Suzuki, Shashank Srivastava told Auto Monitor.

ata Motors will start assembly of its small car Nano overseas, including the Asian region and Latin America. The company currently exports completely built units (CBU) of the revolutionary ultra low cost car—Nano to Sri Lanka and Nepal and now considering the option of assembling the Nano abroad through export of completely knocked down units (CKD). According to earlier communication from the company, the car maker was looking to locating either in Latin America, SouthEast Asia or Africa to set up an assembly plant. The assembly unit abroad will help in uninterrupted supplies of components and parts to its various units.

Managing Director, India Operations, Tata Motors, Prakash Telang, said, “We have a number of important markets for the Nano, like the SAARC countries, ASEAN nations and Latin American region. Considering the huge potential we can think of on the CBU route at ﬁ rst and later at these locations, and we may think of CKD operations latter on.” Tata Motors started exporting the Nano in April this year, with the shipment of 498 units to Sri Lanka at a price of Sri Lankan `9.25 lakh.

Auto Monitor

1 - 15 September 2011

INTERVIEW

“We want to make ourselves accessible to SMBs” Apart from conceptualisation of products, designing and simulation, PLM software can play a crucial role in plant simulation, setting up of smart lines and optimising productivity, thereby enhancing customer satisfaction. Managing Director India, Siemens PLM, Suman Bose, tells Auto Monitor about the value that PLM software can offer to manufacturing companies and his plans to make their services available to small and medium business. Shambhavi Anand How can PLM software help manufacturing companies? PLM software can help manufacturing companies starting from scratch—from product development to the end, being manufacturing of the product to getting customer feedback and analysing them. There is an incremental and fundamental shift in what the customers want and how the required product is produced. Apart from that, what is happening is that the centres of global competencies are emerging. To

take an example, Japan can produce the most fuel efﬁcient cars, while Korea can add some other feature, which is unique. That guides how the labour skills are developing in certain areas or geographical locations. What PLM does, is that it allows one to ideate in one place, design in some other, manufacture else elsewhere. e It allows the ﬂexibility of the proces process which va can add value to manu the manufacturcomp ing companies. ca They can use f lexible modwhi ules which can help th them in addressin procaddressing th esses through t analysis, testing, manufactu manufacturing, dat mandesign, data agement, cu customer management among others. Manufacturi Manufacturing a vehicle is a comproces and it plex process starts wit with capth voice turing the of the customer The tomer. consu consumer c has certain reaso reasons for likin liking or disl disliking c a certain fe feature. The

customer feedback comes in English and has to be translated in terms of engineering. Then the product has to be designed keeping the cost in mind. All this can be done after a lot of analysis. This is where PLM software can help. There is no company in the world which can do everything starting from product conceptualisation to product building to process building, shop ﬂoor automation, factory automation, process automation and design the subsystem. Moreover, each piece is also available standalone, we don’t believe in taking the customer hostage.

What role can a software like yours play in setting up manufacturing units? After product conceptualisation, the PLM software can help in manufacturing the products using the best strategy to manufacture. Using plant simulation, the Siemens PLM Software can help in modelling, simulating, analysing, visualising and optimising production systems and processes, the flow of materials and logistic operations. Users can optimise material flow, resource utilisation and logistics for all levels of plant planning from global production facilities, through local plants, to specific lines. ‘What if’ analysis can be done and one can arrive at the best possible solution in a particular circumstance. One can either set up a whole new plant using the software or incorporate changes in an existing plant. For instance, if a supplier delays supplies, one can’t can keep the line waiting; so what do they do to keep it going? We can offer services like data man-

agement under which, ways of reducing cost can be looked at. We make the worlds’ best sensors. We can also help in plant automation, manufacturing line automation, performance automation—we help the company design the process by using our tools to build the process, and then manufacture the plant. What are smart lines and how can they reduce cost? Let us take a process like warranty return—that’s an added cost; the more warranty return cases, the more cost a company incurs. Now to reduce them, what is the way you should adopt, should you try to repair that at the point of customer contact or should you repair that backend during manufacturing? Most companies take this kind of call, which is based on cost, time and volume attributes. If the customers take their cars to the garage, they have to leave it there for some days which might leave them unhappy. In case the incidence of a particular problem occurs in say, North India during summer season, it might be due to the excessive heat and could be resolved by replacing some rubber part with some other kind of material. So the factories or lines which are meant to be supplied to north India can be altered using automation and converted to smart lines so that they incorporate these changes. We are also a green company and can help in reducing the consumption of electricity by 25 percent of a manufacturing unit.

What are the unique challenges faced by the Indian manufacturing units as compared to the developed nations?

The customers that the Indian companies have to cater to are unique and so is the demand. On one hand, they manufacture for extremely low priced as well as extremely high priced customer groups. The volumes are more than other countries and the nature of market is also different. All these things bring additional complexities. The third complexity is that the workers and technicians who repair these products during servicing are not equipped or educated enough to handle high technology products. That also has to be kept in mind. Indian industries are highly westernised, like in terms of robot usage. Another major challenge that they face is lack of availability of manpower. In a country of 1.2 billion, a major chunk of which is the young, working population, under-employment and unemployment poses a problem both on the manufacturing side and the service side. Small and medium enterprises form a large portion of the automotive industry. Is PLM software affordable for them? In spite of forming a large part, SMBs have not been researched upon. Taking the same model for large companies does not work. So companies like us will have to reinvent offerings for them. When it comes to the overall performance they become the weakest link of chain for an OEM. We are conscious about their requirements and are interested making our software available for them. Our intention is high and preparedness is low. We are taking a cautious approach. In next 12 months we will be on our radar.

EDITORIAL Inclusive manufacturing policy crucial

he world is faced with an array of problems starting from the tsunami-induced issues in Japan, the European debt problem, volatility in commodity prices, the deficit crisis and the rating downgrades in the US, the crisis in west Asia, Moody’s rating cuts in Japan’s debt and the Lokpal Bill—Jan Lokpal Bill imbroglio in India. As a result, uncertainties prevail across the globe eventually dribbling the stock markets and further lowering investors’ sentiments. However, one can be sure that if the basics are strong, things will not go haywire. Though there are several issues in India—be it infrastructure or the availability and cost of fi nance, the fundamentals such as the laws pertaining to fi nance for instance, are fi rm. A case in point is the splendid increase in manufacturing sector exports by 114 percent since the global crisis. Recently, the Minister of Commerce and Industry, Anand Sharma emphasised the need to increase India’s share in global trade which is currently estimated at less than two percent. He also said that India will achieve its target of doubling its share in global trade of goods and services by the target year of 2020. However, the contribution of the manufacturing sector to India’s GDP is around 16 percent, against more than 22 percent in other developing countries. In a few weeks from now, the government is expected to announce a new manufacturing policy with the objective to create about 100 million additional jobs besides, increasing the manufacturing share of GDP to 25 percent. It will also pave the way for creating National Investment and Manufacturing Zones with world class facilities to support its objectives. Ultimately, the aim is to help develop the country as the technology workshop of the world, like the way it has became the global manufacturing hub for small cars. However, the government’s visions will not be successful if the policy does not favour compatible labour laws. Fluctuating commodity prices and higher cost of fi nances result in wafer thin margins for the manufacturing sector,

and the worst hit is the component industry. Therefore the government should take in to account these concerns while formulating the manufacturing policy. The policy should be inclusive and it should ideally enable the manufacturing sector to have the resources of a large entity and the nimbleness of a small player. ACMA is holding its 51st Annual General Meeting on 6 September followed by SIAM, which is hosting its 51st Annual Convention the next day. While SIAM will focus on issues inﬂuencing the Indian automotive industry’s competitiveness, growth and its integration with the global economy, ACMA will discuss benchmarking for progress, performance and competitiveness. Both the OEMs and component manufacturers are looking forward to fruitful deliberations with a lot of takeaways. In this issue, you will ﬁ nd interesting stories on several companies including Maruti, Force Motors, IFFCO Tokio and Ramco. Wishing you much pleasure reading. Do send us your feedback.

T. Murrali t.murrali@infomedia18.in

FORTNIGHT’S QUOTES Akio Toyoda, Toyota’s President and CEO during the recent unveiling of the 2013 Lexus GS 350 in California

Sergio Marchionne, Fiat SpA, Chief Executive Officer on his outlook for global auto sales in Automotive News Europe

“The European market will go down in 2011 and I don’t see it doing well in 2012”

“Our vision is that Lexus becomes the best, not the biggest, the best, most innovative, progressive luxury brand that delights customers from all around the world”

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Auto Monitor

1 - 15 September 2011

CORPORATE

Lacklustre auto sales causing concerns among ﬁnanciers, dealers Abhishek Parekh Mumbai

ustomers adopting a ‘wait and watch’ attitude and even down trading to smaller vehicles, is causing a concern among auto fi nanciers a nd even auto dea lers. Additionally, most banks, auto fi nance companies and even dealers lament due to meek response from buyers. “It might help banks and auto fi nance companies if we (fi nanciers and vehicle manufacturers) sit together and figure out attractive schemes and initiatives to help push up sales in such a market. I do not see a major upturn in vehicle sales, with a limited upturn in upcoming festive seasons including ‘Navratri’ and ‘Diwali’,” said Executive Vice President, Auto Loans, HDFC Bank, Rajan Pental. He added

that though customers are looking forward to new launches in the coming months, they are essentially adopting a ‘wait and watch’ policy with most choosing to defer purchases. Additionally, he also pointed out that the phenomenon of increased preference for diesel vehicles in the recent months on the back of expanding fuel price differential is causing concern as vehicle manufacturers are unable to produce a sufﬁcient number of diesel cars leading to deferment or cancellation at customers’ end. Dealers and auto financiers are not benefiting, despite larger ticket size or sale value, from the increased preference for diesel vehicles. “Customers are put off by long waiting periods. Though manufacturers are trying to address this situation, the scenario is wors-

ening over the recent months and has hurt dealers and financiers alike,” said an ICICI bank official. He added that the interest rate scenario is uncertain and is beginning to hurt vehicle sales. Pental added that the festive season beginning with Onam in Kerala has not been encouraging from the vehicle sales perspective. Even as vehicle manufacturers are looking for solace with several other festive seasons including Ganesh Chaturthi, Navratri and Diwali over the next couple of months, the sales are unlikely to take a major upturn, going by current indications. Moreover ‘serious’ buyers are more likely to increase the cash component in vehicle value (implying lower loan amount) and even buying entirely on cash. This has always been the case when interest rates

climb higher, but holds particularly true in current times with several lower cost options like the Nano or the Ford Figo. Increasing prosperity in rural areas due to higher grain procurement and other agricultural improvements has meant robust tractor sales and opportunities to fi nance tractors, according to an official from Mahindra Finance. But CV sales, which is relatively less affected by interest rates, has been showing signs of softening in certain segments. Banks as well as vehicle fi nancing companies are looking for support from vehicle manufacturers by devising and promoting special schemes targeting increased sales at dealership levels, joint effort at pushing sales in Tier III and smaller towns as well as easier terms in the current high interest rate scenario.

M&M launches entry-level model of Scorpio Our Bereau New Delhi

ahindra & Mahindra launched a new, entrylevel offering, Scorpio Ex, from the Scorpio stable. The vehicle which is priced at `7.59 lakh (ex-showroom-Delhi, for BSIV version) is powered by a 75 BHP m2DiCR engine and claims to offer a fuel efficiency of 14 kmpl mileage (as per ARAI). Scorpio Ex has a 2.5-litre m2DiCR engine with 75 BHP power and 220 nm torque which is equipped with the fuel-saving Micro Hybrid technology, which allows it to intelligently switch the engine into the standby mode, when not required. Other features include crash protection crumple zones, to protect passengers in the unfortunate event of a collision and the digital immobiliser which protects the vehicle from theft.

TVS Logistics to assemble power-packs for Ashok Leyland Our Bereau Chennai

VS Logistics Services (TVS LSL) inaugurated its logistics assembly facility at Sholavaram, about 40 km north of Chennai recently. This will be a dedicated and full-ﬂedged assembly facility for the Power Solution business unit of Ashok Leyland, to assemble genset engine powerpacks in the range of 10 to 2,000 KVA capacity for both domestic and export markets. The facilit y was inaugurated by Managing Director, Ashok Leyland, Vinod Dasari in the presence of the Managing Director, T VS Logistics, R Dinesh. According to the business model, Ashok Leyland will supply engines and radiators to TVS Logistics, which will provide end-to-end supply chain solutions by ensuring infrastructure, procuring child

parts, assembling, packaging, material handling solutions and logistics solutions for the assembled genset engine power-packs as per OEM’s requirements. This arrangement would also mean that TVS

Logistics will be a single-point of contact for Ashok Leyland for assembling the genset engine power-packs. With an initial investment of `2.5 crore, the plant will have the capacity to assemble 14,500 units per annum. The 70,000 sq ft facility has the infrastructure to scale up to 30,000 units. Strategically located near the Ennore Port and well-connected by road to the cities of Bengaluru and Kolkata, the facility will assemble different power-packs and is expected to meet Ashok Leyland’s sales requirements for the next three years. Dinesh said, “This facility is a milestone for us as very few supply chain companies globally have the capability to provide end-toend supply chain solutions which include taking ownership of the sub-assemblies. Thanks to our acquisitions in the US and UK, we are now able to offer this service in India.” Dasari said the association with TVS Logistics will help the company to offer greater value to its customers through customised power solutions meeting their speciﬁc requirements at a reduced delivery time. “Our power solution business is growing robustly in tune with the domestic genset market that is shortly expected to touch two lakh units per annum,” he said.

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Auto Monitor

1 - 15 September 2011

AUTOPINION

Transfer Pricing Customs Harmonisation: The need of the hour

Dinesh Supekar, Partner, Price Waterhouse & Co

he Indian auto industry is going through some turbulent times. The year 2011 has been mixed so far with July numbers showing a decrease of app roximately 16 percent in the overall sales numbers year-on-year basis. This is primarily on account of increasing fuel prices and lower consumerconﬁdenceonaccountof global uncertainties. It is imperative to note that though the objective of both transfer pricing and customs is to determine the arm’s length price for assessment, their approach is inconsistent which leads to double whammy for the tax payers. Given this anomaly, it is high time that the concerned authorities work towards harmonising the approach in transfer pricing as well as in customs. This article seeks to discuss the objectives of the respective authorities while making an assessment, apparent conﬂicts within the two wings of the revenue authorities and the global initiatives taken to achieve transfer pricing—customs harmonisation.

1. Key Objectives The objective of income-tax authorities and the customs authorities is to ensure that related parties are transacting with each other on an arm’s length basis. However, given the same objective, the tendency of both the authorities is to scrutinise the transaction with different approach so as to ascertain that there is no revenue leakage for the respective department. The main objective of customs valuation is to determine a reasonable dutiable value for each import transaction ie on transaction by transaction basis. However, the objective of transfer pricing investigations, which is part of the income-tax assessment, is to determine a reasonable distribution of proﬁts earned in controlled transactions between related parties consistent with the characterization of each entity and the arm’s length principle. Normally the customs process does not focus on a pre-selected target company but adopts a transaction-by-transaction approach whereby certain transactions in which the customs authority have a reason to doubt the truth or accuracy of the value declared, are scrutinised. In practice, the customs authorities have developed a risk analysis system that it applies during the entry declaration review process by which it identiﬁes goods and companies that present risks of non-compliance. Accordingly, imports made by a company

where the buyer and the seller are related are considered to fall within the ambit of special circumstances and are referred to a special cell known as the Special Valuation Branch (SVB). The SVB Cell determines whether the relationship between the buyer and the seller or any other factor influences the transaction value of imports made from the related seller and determines whether the Transaction Value (‘TV’) is acceptable as per the provisions of the Customs Valuation (Determination of Price of imported Goods) Rules, 2007 (‘Customs Valuation Rules’) laid down in this regard. The confl ict between the two systems is seen in the following key areas: 1.1.Pricing Methods & Priority The Indian transfer pricing regulations prescribe five methods mentioned below to arrive at the arm’s length nature of transactions. The Regulations provide no priority of methods. Rather, the selection of the pricing method to be used to test the arm’s length character of a controlled transaction must be made under the ‘Most Appropriate Method Rule’. The ‘Most Appropriate Method’ is that method which, under the facts and circumstances of the transaction under review, provides the most reliable measure of an arm’s length result. While in customs, where the declared TV is not acceptable, the Customs Valuation Rules prescribe six rules which deal with the methodology of arriving at the valuation for the purposes of Customs. In circumstances where the buyer and the seller are related, Rule 3 allows for acceptance of the TV provided the relationship does not influence the price and the value closely approximates the test values. If the TV cannot be determined in accordance with Rule 3, application of Rules 4 to Rule 9 is considered. The methods prescribed under Rules 4 to 9 are independent of each other and are applied sequentially. Only if conditions prescribed under one rule is not met, then the next rule is applied. There exists no priority of methods in Transfer Pricing. While the customs Valuation methods are broadly similar to the one prescribed under the Transfer Pricing Regulations, the Customs authorities tend to lay more stress on product similarity than functional similarity while undertaking Customs Valuation. These differences may result in a company having difficulty in structuring its pricing methodology to satisfy the requirements of both the income-tax authorities and the Customs authorities. Accordingly, even if a company sets its transaction price in compliance with Transfer Pricing Rules, it could still face a challenge and a price adjustment from the Customs authorities employing a different pricing methodology, or vice versa. 1.2.Different Approaches Another potential confl ict

in the approach lies in the aggregation versus disaggregation. The Transfer Pricing Regulations would allow a taxpayer to aggregate all imported products from a related party to demonstrate the arm’s length treatment under the most appropriate method rule. However, the customs regulations require a customs value to be determined for every imported product. Thus, a related party importer would have to illustrate that every individual related party transaction was at arm’s length, not simply the aggregate value of transactions. Further, the importer will also have to prove that the other payments, like royalties, license fees, commissions, etc, to the supplier, have no corelation to the imports and are not a condition for sale for the importer. This is one of the key areas of focus of the customs authorities for auto companies. To illustrate—An Indian auto company has imported certain raw materials from its group entities at multiple point in time during the relevant fiscal year. Also, the company has paid royalty under a separate arrangement for acquiring the know-how from the same group entity. When it comes to justifying the arm’s length price at the end of the year from transfer pricing perspective, the Indian company compared its net margin after aggregating all its purchases along with the royalty payments during the said year with the net margin of comparables and demonstrated that its transactions with group entities are at arm’s length. However, from customs perspective, the fair value assessment is done at the point of time of import. Thus, the customs authorities would tend to look at the price per transaction at each point of import rather than aggregating all purchases which happened at different point in time during the relevant fiscal year. 1.3.Confl icts Periodic price adjustments for transfer pricing purposes are common in India based on comparable data of comparable companies. In fact, the Indian companies are required to relook at the transfer prices every year based on the latest available information of comparables. In other words, related parties can adjust their transfer prices to ensure transactions as a whole reflect the arm’s length principle. However, the customs authorities normally require a strong justification for periodic adjustments. Their focus is to compare the value of related party transactions to those of identical/similar transactions between unrelated parties so as to establish that the declared value of the goods imported from related sellers are not influenced by any special factors and that the price is sole consideration for the imported goods, without getting into the characterization of each entity in the value chain.

Given the above conﬂ icts in the two wings of the revenue authorities which results in tax payer suffering on both counts, it is very important to harmonise both transfer pricing and customs to ensure tax friendly environment and thereby sustain the charm of India as a favourable investment destination.

2. Convergence Initiatives 1. WCO & OECD: There have been attempts made by multiple nations to come together at one platform to discuss the issues and identify resolution measures. Among the prominent ones was the second joint conference of World Customs Organization ( WCO) and OECD which was held in Brussels in 2007 to discuss this issue of harmonisation of Transfer Pricing and Customs 2. Initiatives At Country Level: Many countries have initiated processes to increase interaction between the national Customs and Transfer Pricing authorities and issued guidelines to resolve the Customs / Transfer Pricing confl icts. (a)United States (US) US Customs and Border Protection (‘CBP’) issued a compliance publication released in late April 2007 which provides importer guidance into the usefulness and applicability of using transfer pricing studies (including Advance Pricing Agreements (APAs) for customs valuation requirements. CBP has stated that a Transfer Pricing study can have very useful information concerning the facts of the related party transaction, as well as potential information on similar unrelated party transactions. While the CBP recognizes the importance of Transfer Pricing study, it has stated that Transfer Pricing study alone would not be sufficient, the same needs to be corroborated by additional documentation. (b)Canada Canada revenue agency released a memorandum in 2006 (D13-3-6) on aligning Transfer Pricing and Customs value. It states that both Customs Valuation and Transfer Pricing require compliance with arm’s length principle and also lays down the various confl icts and reconciliation measures that need to be undertaken for valuation under Transfer Pricing and Customs. (c) Australia The Australian Customs & Border Protection Service issued a Practice Statement in 2009. This statement seeks to ensure that the Industry understands the Customs and Border Protection’s (‘CBP’) valuation legislative requirements and related policies for the purpose of applying transfer pricing valuation advice. The purpose of this statement was to provide guidance to the CBP staff in the area of transfer pricing. Thus, though there is nothing expressly provided in the statute of the above jurisdictions on harmonization, globally there is an

increasing awareness about this issue and the authorities are making attempts to share information for a productive resolution.

Indian Initiative There is nothing expressly provided either under the Income-tax Act or under the Indian Customs Act that the value accepted by either of the authorities to be at arm’s length shall be binding on the other. However, in line with the global trend to make attempts to resolve the conﬂicts, the Indian Customs authority issued a Circular in 2007 which essentially aim to increase the coordination and exchange of information between the Income-tax authorities and Customs authorities. The above circular was seen as the ﬁ rst clear statement of intent of the government of India, towards addressing the transfer pricing disputes in a harmonious manner between the customs and the income-tax departments. The above developments seem to indicate that the Government is conscious of achieving harmonization between TP and customs. Having said that, a lot more concerted efforts are required to achieve the desired result. There is a need to lay down clear rules and regulations to the effect that once the price is determined by one wing as arm’s length price, the same should also be considered by the other wing.

Conclusion In India, the interaction of income-tax and customs authorities remains to be an interesting subject for multinational companies. The income-tax and customs authorities continue to maintain divergent purposes and interests. In many areas, the confl icts could cause significant fi nancial and compliance burdens on multinational companies. Even after the circular issued by the customs authority in 2007, it is still largely unclear as to how the income-tax and customs authorities would work in harmony to solve potential confl icting positions on the same issue. Given the seriousness of this issue, the tax payers should consider both set of rules ie transfer pricing as well as customs while setting prices and creating documentation. In auto industry, it is important to demonstrate that the aforesaid payments are unconnected with supply arrangement. The tax payers should seek to reconcile the transfer pricing with a product line rather than an aggregate analysis. In other words, transaction level analysis would become critical from harmonisation perspective. In fact, the Indian transfer pricing authorities are beginning to lay more emphasis on transaction level analysis. (With inputs from Suresh Rohira, Navneet Kothari and Tejas Dharwadkar, PwC. The author works for Price Waterhouse & Co. Views expressed are personal.)

1 - 15 September 2011

Auto Monitor

CORPORATE

Maruti Suzuki gears up for sales rebound Nabeel A Khan New Delhi

aruti Suzuki, has created some excitement in the automobile market with the launch of the new version of Swift, and has registered over 50,000 bookings within ten days for its latest soldier. “We have introduced the price today but even before this, we have received a great response. In the last ten days we have received bookings for more than 50,000 units. I think the new model has brought excitement and this can help revive the slack in the market,” Managing Executive officer, (Marketing & Sales) Mayank Pareek told Auto Monitor. The car maker has priced the

Swifter Reincarnation The new Swift offers an improved acceleration, high power-to-weight ratio, better fuel efficiency and over 140 new features. Built on an all new platform, the new Swift is longer by 90 mm, wider by 10 mm and lighter by 30 kg than its predecessor. The carmaker has increased the price by six percent in the diesel and four percent in the petrol version. In addition, the company has introduced the V VT engine technology in all petrol variants of the new Swift. The highly acclaimed DDiS engine powers the diesel variant. According to the company, the fuel efficiency of the petrol version is 18.6 kmpl while for diesel its 22.9 kmpl. It was an investment of over `550 crore to give shape to the new Swift. Swift entered the Indian car market in 2005 and so far over 600,000 units have been sold. new Swift aggressively between `4.22 lakh and `5.53 lakh for petrol engine (ex-showroom Delhi) and `5.17 lakh to `6.38 lakh diesel engine (ex-showroom Delhi). The price is expected to give tough competition to other carmakers like Toyota, Hyundai, VW, Nissan and Ford in this segment. However, Honda has already created a lot of heat with new price of its Honda Jazz in the segment. Maruti sees this launch as a catalyst to spike up the sales and says it will continue to bring more such excitement to the market. Though it did not disclose the plans for more launches, an MPV is expected by the end of this year from the Maruti stable. The company has introduced the VVT engine technology in all petrol variants of the new Swift while the DDiS engine powers the diesel variants. The new swift will be rolled out from the Manesar-B plant. The company is also ramping up the production of the Swift from monthly 12,000 units now to 17,000 units in the next few months. Maruti’s plant in Manesar can produce 3.5 lakh units annually. The carmaker’s three facilities in Gurgaon have a combined annual capacity of 8.5 lakh units. The largest carmaker is looking to tap new market and plans to double exports by 2020. It witnessed a considerable drop in exports in the first quarter of this fiscal and is exploring markets such as Thailand and South American countries to sell its cars. Maruti ‘s exports dropped around 23 percent to 39,639 units

during the ﬁ rst four months of the current ﬁscal as compared to 51,180 units a year ago. The drop was mainly because the European market remained challenging on account of the withdrawal of scrappage incentives. “We will double our exports by 2020. With European market getting weak, we have to look at alternate markets to boost our presence, so our eyes are on newer and potential markets,” Managing Director and CEO at Maruti Suzuki, Shinzo Nakanishi said during a press conference. The carmaker now plans to focus more on non-European markets. The company has added new markets like Hungary, Malaysia, Laos and Lebanon during this year and also planning to export more to markets like Indonesia, where it already has a presence.

Maruti sees the Swift launch as a catalyst to spike up the sales and will continue to bring excitement to the market. Though it did not confirm, an MPV is expected by the end of this year from the company’s stable In the Indian market, it has seen a steep rise in the sales of diesel engine cars. The ratio over petrol and diesel have become 40:60 and company wishes to have its

own developed diesel engine but so far no process in this direction has been initiated. The company continues to source know how from Fiat for its diesel engines. On

the new plant, the carmaker said that it is still exploring the option to set up its new plant. It has visited Gujarat and Tamil Nadu for the same.

Auto Monitor

1 - 15 September 2011

CORPORATE

Force Motors to offer lower variant of ‘Force One’ Abhishek Parekh Mumbai

orce Motors is looking to offer ‘lighter’ loaded or stripped down variant of its recently launched Sports Utility Vehicle (SUV) Force One in `eight-nine lakh price bracket with an eye at garnering volumes from the people carrier or tourist segment. Though the passenger vehicles’ division of the company is going full throttle on development programmes of SUV and MUV, it does not intend to enter the passenger car segment due to ‘dynamic’ market scenario in that segment coupled with the lack of expertise. “We are looking at offering a more basic version of the SUV to target the less discerning customer segment and this move could help us garner higher volumes,” according to a top company ofﬁcial. He added that the price difference could be around `80,000-90,000 between the current offered standard variant and new offering planned a couple of months down the line.

He added that the company is not specifically looking to target the tourist segment as it is already working on a Multi-Purpose Vehicle (MPV) in this segment to compete with the Innova and the Tavera to be launched next year. Force Motors recently launched ‘Force One’ at `10.65 lakh as a standard variant. The company is looking to offer a ‘4X4’ or fourwheel drive variant in the next four to five months and an ABS loaded version by end of next year. The company is offering its SUV with features like driver information system, cruise control, steering mounted audio control, dual AC vent for all three seat rows, electrically operated exterior rear-view mirror and leather seating as standard option. The SUV is powered by 2.2-litre common rail diesel engine to be manufactured under license from Daimler AG mated with manual transmission. The company has also tapped the services of UK’s Lotus Engineering for ride and handling and received certification for vehicle electronics from

Prasan Firodia, MD Force Motors & Abhay Firodia, Chairman Force Motors with celebrity Amitabh Bachhan at the launch

Mercedes Benz Technologies, a consulting arm of German auto maker. The company has spent around `150 crore in the passenger vehicle development programme and is looking to spend `30-50 crore in brand

building exercise through advertising and marketing. The company is setting up a separate dealership network for its passenger vehicles division with a distinct identity and some of its existing utility vehicle deal-

ers could also be tapped to set up separate dealership for passenger vehicles. It is setting up 22 dealers before the end of this year in the ﬁ rst phase followed by another 22 dealers before the middle of next year.

Diesel becoming preferred fuel option: Volkswagen India Our Bureau Mumbai

he current fuel price equation is leading to growing number of customers opting for diesel powered cars. “The uncertainty seen in the passenger car sales across segments is likely to continue with ﬂat growth in the premium mid-size segment till date this calendar year. Moreover we are looking at an increasing number of customers opting for diesel cars,” said Member of Board and Director, Volkswagen Passenger Cars, Volkswagen Group Sales India, Neeraj Garg. He added that the German car manufacturers’ key offerings, the Polo and the Vento are also increasingly preferred in diesel. The share of diesel powered Polo has risen from around 40 percent a year ago to more than 50 percent and is rising, while 70 percent of Vento are sold in diesel variant currently. Garg added that the company is

Neeraj Garg, Member of Board, Director Passenger Cars(L) and Lutz Kothe, Head Marketing & PR, Volkswagen at the Jetta launch in Mumbai

making concerted effort to bring down the waiting period for the Polo to less than a month. The Volkswagen Group has sold around 42,000 units to date this ﬁscal as compared to around 32,500 units in the last calendar year in a bid to outperform its segments. The German car manufacturer recently launched

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the new Jetta in four variants— Trendline, Comfortline and Highline (manual and DSG gearbox) at `14.12 lakh (ex- showroom New Delhi) starting price for the Trendline options. The new Jetta is equipped with two litre, four cylinder CRDi engine with a six speed gearbox in both manual and automatic transmission

VW’s key offerings, the Polo & Vento are increasingly preferred in diesel. The share of diesel powered Polo has risen from 40 percent to over 50 percent and is rising options. The sixth generation Jetta is 90 mm longer than the previous generation. Additionally, ‘Navarra’ alloy wheels with 16 inch tyres, day time running lights, rear fog lights, side turn signal lights integrated in exterior mirrors and dual exhaust pipes come as standard options. The new generation Jetta will be offered in six colours: candy white, reﬂex silver, toffee braun, deep black pearl, platinum grey and silver leaf. Volkswagen offerings in India include the Phaeton, the Passat, the Jetta, the New Beetle, the Touareg, the Polo and the Vento.

1 - 15 September 2011

Auto Monitor

CORPORATE

Major fall in insurance rates detrimental to growth Our Bureau Mumbai

he falling cost of motor insurance policies, though attractive for end customers in the immediate term, may be detrimental for the growth of the motor insurance segment and for customers as well in the long term. Fair and reasonable pricing of risk is a key factor in any segment of the insurance industry and players are putting this business sense aside in order to garner a marketshare. The detariffing of the motor insurance segment has led to drop in tariff by around 30 to 40 percent across policy horizon, according to Senior Vice President, Motor Insurance, IFFCO Tokio, Abhay Kumar. The key cause of concern, according to Kumar, is that the rates of

Polaris enters Indian market Our Bureau New Delhi

S-based off-road vehiclemaker Polaris Industries announced its formal entry in to the Indian market with the launch of its off-road vehicles. The product line introduced to the Indian market consists of the Polaris all terrain vehicle (ATVs), Polaris Ranger RZR side-by-side vehicles and Snowmobiles and will be priced between `2.4 lakh and `20 lakh (Delhi). The company which has entered the Indian market through a wholly owned subsidiary, Polaris India, will establish dealerships in Delhi, Chennai, Mumbai, Kolkata, Jaipur, Ahmedabad, Kochi, Jammu and Patna to make the vehicles available to customers. The vehicles will be imported as completely built units from its facilities in the US and Mexico.

Bennett Morgan, President & COO, Polaris Industries, Pankaj Dubey, MD, Polaris India & Mike Dougherty, VP, Global New Market Development

“India has been one of the growing markets in the automobile segment and is one of the top three important countries for Polaris Industries. We foresee great potential for the growth of off-road vehicles in the country and we will be investing in terms of manpower, infrastructure and machinery in India to develop the category,” President and COO, Polaris Industries, Bennett Morgan said. Talking about the specialised automobile market, Managing Director, Polaris India, Pankaj Dubey said, “Since the market for such vehicles is still in the nascent stage in the country, our principal aim is to sensitise the consumers, create a new market and to generate more interest in these activities. We will focus on the utility application of our vehicles in areas of construction, forest, military, police and Para military forces.” Depending upon the demand the company may set up an assembly unit in India soon and will play a critical role with Brazil and China in achieving its targets.

comprehensive motor insurance are falling beyond ‘reasonable’ level with complete disregard to the associated risks. This is leading to free falling tariff scenario that is detrimental for the motor insurance segment as a whole and could lead to higher cost for customers in the long term. “The primary concern seems to be marketshare acquisition and nothing beyond that in some of the market segments,” added Kumar. There is a limited scope for innovative product offering or product differentiation in the current scenario of price war, as the end customer is mainly focussed on two key aspects while buying motor insurance: price and service quality. The quality of service is one of the major issues likely to turn into a differentiating factor deﬁ ned by

Abhay Kumar, Senior Vice President, Motor Insurance, IFFCO Tokio

how easy or smoothly can claims be settled and policy acquired. The process of buying a new policy and renewal needs to be streamlined for most motor insurance providers, in order to get to the next phase of growth. Moreover, a large number of existing two-wheeler buyers and owners would be graduat-

ing to purchasing four-wheelers as prosperity level rises and product offerings get widened. Hence, the growing passenger car sale is likely to be the major focus area for IFFCO Tokyo in the coming years. The company is focussing on growing its presence through multi-pronged approaches, including presence at automobile dealerships as well as direct selling network or agents. Most passenger car buyers continue to maintain and drive their car for around eight years and any insurance company has to be in regular touch with a customer for all of these eight years, if it has to make a mark for itself. Most of the customers would be in touch with dealers or authorised service centres for the three or four year warranty period, but is likely to go out of the dealers’

loop post the warranty period on the vehicle. An insurance company needs to build up multiple channels to ensure that the customers stays in contact and renews his/her policy. The company is a joint venture promoted by Indian Farmers Fertiliser Co-operative (IFFCO) and its associates, The Tokio Marine and Nichido Fire, which is one of the largest insurance companies in Japan. The Indian promoter’s contribution is 74 percent, while Tokio Marine has contributed 26 percent through Tokio Marine Asia. Tokio Marine has been awarded as Asia’s General Insurance Company of the year (2008) by the prestigious Asia Insurance Review. It has a widespread network of more than 170 ofﬁces across the country and many more in the pipeline for the coming year.

Auto Monitor

1 - 15 September 2011

CORPORATE

Deloitte releases EV report for India market Our Bureau Chennai

Mahindra Reva

hough a large section of the passenger vehicle customers including those from the educated and the afﬂuent are willing to consider buying Electric Vehicles (EVs), the actual buyers with the current generation of technology would be in the range of three to ﬁve percent by 2020, according to a report on released by Deloitte Touche Tohmatsu’s Global Manufacturing Industry Group. Releasing the report titled ‘Gaining traction: Will consumers ride the electric vehicle wave?’, the Senior Director and India Manufacturing Leader of Deloitte Touche Tohmatsu India, Kumar Kandaswami said that significant technolog y barriers have to be overcome to give the consumers the driving experience that they want and at a price point that would be close to that of the vehicles with Internal Combustion Engine (ICE) before EVs are mass produced.

“Electric vehicles are no longer just an idea in the minds of car buyers. They are willing to consider the EV as a practical commuting option. While this is good news for manufacturers of EVs, it must also be recognised that there are a number of barriers that they have to cross before this interest to consider elect r ic veh icles translates into sales for them,” Kandaswami said.

As per the report which is based on a survey conducted across 17 countries including India, China, Japan, Europe and USA covering 13,500 respondents, the majority of potential consumers are likely to be educated and from urban locations. India seems to have an almost equal number of male and fema le potentia l buyers unlike some of the more developed markets where male

buyers tend to be significant. Interestingly, the early adopters are likely to be from the aff luent sections as compared to the middle income groups in the developed economies. A third of Indian customers expect to purchase the EV for around `four lakh and another third willing to go up to `seven lakh. This would correspond to the prices they would pay for their conventional cars with ICEs. Clearly, there is unwillingness to pay a premium for clean technology, as is found to be the case in most markets, he said. The acceptable purchase price varies between 20 and 50 percent of the annual income of the early adopter segment, except in the case of Europe where the respondents are willing to go as high as 75 percent of the segment’s annual income. The report further stated that the respondents expect the manufacturers of the government to deal with additional development or manufacturing costs. Overwhelmingly, respondents disagreed with the notion of pay-

ing a premium for technology that is clean and can mean energy independence. In the case of China and India, about 20 percent of the customers would be willing to pay about ten percent more as premium. Further, there is anxiety in the minds of customers who expect the EV to deliver a range that is about four times what they report as their average commuting distance. In addition, the manufacturers have to overcome the challenge of charging time. About half of the customers would expect this to be two hours or less. In addition, there is an expectation that the charging infrastructure is in place. W hile fuel price increase may not be the only factor that drives customers to buy EVs, it is a fact that they have a mental benchmark of 130-150 percent of the current fuel prices that will make them consider electric vehicles. Moreover, fuel efﬁciency of vehicles can also inﬂuence the pace of adoption. A little over 70 percent of the respond-

Kumar Kandaswami, Senior Director & India Manufacturing Leader, Deloitte, Touche Tohmatsu India

Many Indian customers expect to purchase the EV for around `fourseven lakh. However, there is unwillingness to pay a premium for clean technology across all markets. Fuel efficiency can also influence the adoption

ents said they would consider the EV if the fuel prices crossed `85 per litre. Conversely, 74 percent of the respondents are less likely to consider buying an EV if the ICE cars were to deliver 32 kmpl. “It is important to note the willingness to trade off one parameter against another would depend on the economics of owning an EV and the capabilities that are offered by the manufacturers evolve. On the basis of the cost, range and charging time realities of the EVs available in the market, we estimate EVs to be less that ﬁ ve percent of the total passenger vehicles sold in India by 2020. This, of course, can change dramatically if the OEMs are able to achieve technology and price breakthroughs,” he said. While the notion of EV is appealing in a number of ways and the point of change seems to be in sight in terms of customer readiness, signiﬁcant technological barriers have to be overcome in order to achieve mass adoption of EVs, he added.

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1 - 15 September 2011

ANALYSIS Two-Wheelers

Commercial Vehicles

Passenger Vehicles The passenger car segment grew by 1.12 percent during the April-July period this fiscal, while the utility vehicles grew by 7.84 percent and the multi-purpose vehicles grew by 25.42 percent in this fiscal. Toyota led the passenger car segment with a growth of around 668.1 percent from 3,044 units to touch 23,381 units this fiscal, as compared to the previous period. BMW notched up highest percentage growth in UV segment to touch 1,415 units compared to 104 units in the same period in the previous year, marking a growth of 1,260.58 percent. Passenger Cars OEMs

2010-11

2011-12

BMW

1,300

1,802

Fiat

8,401

6,805

Ford

30,578

27,904

-8.74%

28,846

28,268

-2.00%

38.62%

The overall commercial vehicles segment registered a growth of 16.56 percent in April-July, 2011 as compared to the same period last fiscal to touch 237,019 units. M&HCVs sales were relatively flat at 102,130 units compared to 95,985 units in the same period in the previous year. The light commercial vehicles segment grew at 25.64 percent to touch 134,889 units in this fiscal, compared to 107,360 units in the same period last fiscal. Three-wheeler sales were relatively flat at 154,278 units in April-July period compared to 150,521 units in same period last year. While passenger carriers fell by 1.03 percent in April-July 2011, the goods carriers registered growth of 17.12 percent. VECV-Eicher registered the highest growth in the LCV segment to touch 3,384 units. Mahindra Navistar notched up a growth of 141.57 percent to touch 645 units this fiscal as compared to 267 units in the same period last fiscal.

-19.00%

LCVs (PC+GC) OEMs ALL

2010-11

2011-12

273

157

6,509

7,534

-42.49%

-65.34% HM

2,969

1,029

HSCI

16,728

12,418

HMIL

111,829

118,408

2,068

5,437

MSIL

282,488

260,915

Merc

1,584

1,852

Force

-25.77%

HM 5.88%

1,028

5,945

Renault

502

Skoda

5,526

9,594

Tata

87,202

68,343

30,047

37,942

MNAL

3,718

3,451

Piaggio

3,179

4,087

Swaraj

1,333

1,364

Tata

59,725

76,895

VECV - Eicher

2,395

3,384

Total

107,360

134,889

26.28%

162.91% -7.18%

-7.64% 16.92% 478.31%

Nissan

181

M&M

15.75% -58.56%

73.62% -21.63%

28.56%

Scooter/Scooterettees

2.33%

OEMs

3,044

23,381

Audi

638

1,049

Total

7,911

592,140

2010-11

2011-12

28.75% 41.29%

-100.00% BAL

HML

96,809

131,558

HMSI

302,198

315,623

M&M 2W

39,105

45,269

35.89%

25.64%

668.10% TKM

Domestic two-wheelers sales witnessed a growth of 15.79 percent in this fiscal registering 4,244,588 units against 3,665,691 units during the same period in the previous fiscal. Mopeds, motorcycles and scooters grew by 17.55 percent, 15.64 percent and 15.85 percent respectively. The motorcycle sales grew to 3,249,421 units in April-July period as compared to 2,809,887 units in corresponding period in the previous fiscal. In the Motorcycles segment, Suzuki Motorcycles’ sales were up by 100.46 percent in April-July period this fiscal, while Bajaj Auto’s sales grew by around 8.87 percent to touch 825,501 units in April-July compared to 758,259 units in same period last fiscal. In the Scooter segment, the sales of Hero Motors grew by 35.89 percent while TVS Motor sales grew by 19.1 percent. Hero Motors reported its best sales for July at 477,714 units, registering a jump of 15.23 percent over the same month last year. Bajaj Auto witnessed 5.3 percent growth in its July sales at 202,326 units against the same month in the previous fiscal. TVS Motor Company reported total domestic two-wheeler sales of 160,348 units in July 2011 registering a growth of 12.1 percent. Suzuki Motorcycles India registered the highest growth in domestic two-wheelers sales at around 44.14 percent to touch 26,429 units in July this year.

64.42%

SMIL

68,731

90,509

TVS

130,648

155,603

Total

637,518

738,562

4.44% 15.76% 31.69%

M&HCVs (PC+GC) 217.37%

25,107 1.12%

598,759

OEMs

2010-11

2011-12

ALL

25,209

23,355

AMW

1,800

3,210

-7.35%

19.10% 15.85%

78.33%

UV OEMs

2010-11

JCBL

2011-12 1260.58%

BMW Force

104 1,005

1,415

M&M

9.25%

1,098

Motorcycles/StepThroughs

-71.67%

Daimler*

OEMs - 0.00%

BAL

2010-11

2011-12

758,259

825,501

HHML

1,521,539

1,837,318

HMSI

227,563

231,325

IYM

78,531

110,060

8.87%

141.57% Ford

1,019

905

6,478

7,697

701

708

HSCI

197

108

HMIL

395

-11.19% 18.82% 1.00% -45.18% -52.96%

ICML

287

135

M&M

50,935

60,089

MSIL

3,375

2,144

Merc

107

290

Nissan

157

Skoda

635

Tata

12,971

11,735

-9.53%

TKM

22,023

19,396

-11.93%

MNAL

267

645

Swaraj

2,206

2,368

7.34% 6.91%

Tata

57,411

61,379

VECV - Eicher

8,595

10,726

VECV - Volvo

299

174

Volvo Buses

17.97%

Total

-36.47%

24.79%

VW Total

342

95,985

255 6.40%

102,130

99,705

107,518

2010-11

OEMs

7.84%

2011-12

104

- 00.00%

M&M

6586

- 00.00%

47,138

2010-11

14.83% 14.74%

Tata

15,783

18,109

62,929

78,927

TVS

196,102

203,884

20.69%

3.97% 15.64%

Mopeds/Electric 2011-12

Atul

5,329

7,716

Bajaj

57,772

59,666

OEMs

Force

127

M&M

17,586

19,453

Piaggio

58,167

59,087

Scooters

3,716

4,695

TVS

7,824

3,657

150,521

154,278

2010-11

2011-12

44.79%

17.55% TVS

218,286

256,605

3.28% Electrotherm*

-96.85%

- 0.00% 17.55%

Total

54,128

Total

19,272

33.33%

Force

Maruti

22,061

9,614

-52.23%

MPV OEMs

18,279

Total 2,809,887 3,249,421

101.46%

RE SMIL

100.46% 138

84.78%

171.03%

689

40.15% -_

-41.81%

3-Wheelers (PC+GC)

Audi

M&M 2W

20.75% 1.65%

25.42%

10.62%

Total

218,286

256,605

1.58% 26.35% -53.26%

2.50%

* Data not available since August 2008 onwards

1 - 15 September 2011

Jazz becomes jazzier Our Bureau New Delhi

onda launched the new version of its premium hatchback Jazz, reducing the price by over `1.5 lakh. The new version of Jazz will be available for `5.5-6.06 lakh (exshowroom Delhi). The senior ofﬁcials of the company attributed the price reduction to better and more efﬁcient supply chain management and manufacturing initiatives. Speaking further on the reasons for price cut, Director Marketing, Honda Siel Cars India, Seki Inaba said, “During the past couple of years, HSCI has focused a lot on localisation and cost cutting activities for our volume models through the R&D function in India.” Powered with a four-cylin-

der 1.2-litre i-VTEC engine, the company claims that it returns a fuel efficiency of 16.7 kml, as per ARAI test data. The car sports a front grille, a newly designed aerodynamic front bumper, new headlights with silver and black matt finish and new design 15 inch silver alloy wheels. The monthly sale of the hatchback has dropped to 250 units in the past few months in spite of fi nancial incentives to customers. The company attributes this drop in sales to the tsunami in Japan which affected production and supplies. Honda, which is about to launch its compact car ‘Brio’ shares the same engine as Jazz and is expected to be below `five lakh.

Continental to invest in Modipuram plant Our Bureau New Delhi

utomotive supplier and tyre manufacturer, Continental, which acquired Modi Tyres Company is planning to ramp up the operations signiﬁcantly in the replacement market and the OEM space in India. The new entity which will be known as Continental India will be increasing the production of the Modipuram plant. The plant already produces half a million bias truck and bus tyres (TBX). The company will further invest more than Euros 50 million to start production of radial tyres for passenger cars and commercial vehicles in the second half of 2013. “In India, there is a rising demand for vehicles with high quality tyres as well as premium technology. Radialisation will be the driving force in the Indian truck tyre market, and therefore our investment in radial truck tyre production will prepare a solid base in order to meet that demand,” Head of the Tyre Division and Executive Board Member Continental, AG Nikolai Setzer said. Continental plans to manufacture radial tyres from the Modipuram plant. It expects the plant to be sufﬁcient for the local market. It will also focus on the aftermarket for trucks and passenger vehicles.

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Formula One to have Airtel as title sponsor Our Bureau New Delhi

he much awaited Formula One race in India will have telecom giant, Bharti Airtel, as its title sponsor. To be hosted at Buddh International Circuit in Greater Noida (Uttar Pradesh, India) the ﬁ rst Grand Prix of India will be held on 30 October 2011. Announcing the title sponsor, CEO, India and South Asia, Bharti Airtel, Sanjay Kapoor and CEO, Formula One Group, Bernie Ecclestone unveiled the ofﬁcial logo of sport which will be known as, Airtel Grand Prix of India. Without divulging the value of the deal, Ecclestone said that the time period of the sponsorship is ‘forever’ for now. Kapoor said that the amount put in the deal is big but so is the value of it. He also added that the telecom

giant will announce several customer engagements initiatives related to the grand race. The 3.19-mile track in Greater Noida will be inspected by the body governing the sport for final approval in September. Ecclestone assured that the circuit is being checked by a team of experts on a daily basis and there is no problem. Earlier there were doubts regarding a month’s the delay in the homologation. He guaranteed that the track would be “one of the nicest”. “It will take two to three years for the F1 race to catch up in the cricket crazy nation. But we will try our best to get close to it,” Ecclestone said. Formula One originated from Europe and went across the globe to become a rage. It enjoys the cult following of a whopping 500 million plus fans

(L-R) Sanjay Kapoor, CEO, India & South Asia, Bharti Airtel & Bernie Ecclestone, Group CEO, Formula 1 unveiling the new logo of Airtel Grand Prix of India

across 185 countries. “F1 contributes one billion each year to the country where it takes place. It also creates 28, 000 jobs every year, directly and indirectly,” Kapoor said. He

estimated that the Indian sports market including retail is growing at 14 percent. He said that the sport will make a major contribution to the development of the nation.

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1 - 15 September 2011

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Eicher inaugurates Rajkot dealership Our Bureau Chennai

icher Trucks and Buses (ETB), a business area of VE Commercial Vehicles (VECV), inaugurated its new dealership, Apco Autosales based in Rajkot situated in the Saurashtra area of Gujarat. With the opening of this new dealership, ETB now has 41 dealerships in western India and 210 dealerships pan India. The new dealership which is a 3S facility (Sales, Service & Spares) spanning over 36,000 sq ft, has a state-of-the-art fully equipped set up, with contemporary tools and equipment.. The professionally trained team of Apco Autosales has also undergone training at the Eicher Training School in Pithampur, Indore. The new dealership is part of DGC Group (Dholakiya Group of Companies), which is a prominent business group of Gujarat, primarily dealing in automobile business and is also the dealer of Eicher Trucks and Buses at Ahmedabad and Himmatnagar. While addressing the gathering, CEO, VE Commercial Vehicles, Vinod Aggarwal, said, “We are happy to partner with Apco Autosales. The opening of the new dealership will further strengthen Eicher’s resolve and commitment to provide sales and after sales support to the rapidly growing customer base in western India”. “The new 3S facility with its state-of-the-art equipment and best in class operating standards will help us enhance customer experience and ensure that our customers are able to get their products serviced faster and with

Mahindra inaugurates Sundaram Automobiles Our Bureau Chennai

a h i nd ra Nav i st a r Automot ive s has recently opened its new dealership in Kozhikode— Su nd a r a m Automobi le s . Inaugurating the dealership, the Managing Director of Mahindra Navistar Automotives, Nalin Mehta said, “We have already sold more than 1,300 trucks across the country within a short span of time and gained tremendous confidence and appreciation from our customers. We have created a world class manufacturing plant in Chakan, Pune for trucks with an investment of `950 crore and are creating a modern distribution network in the country as the one here in Kozhikode, to cater to the growing needs of customers. The state-of-the-art dealership will also feature a well-equipped workshop, prompt spare parts availability, mobile service vans and highly trained staff to enable our customers to get a hassle free and delightful experience of owning our trucks”. Kozhikode is an important market for transportation industry—not only for Kerala but for the entire southern India. According to him, the company commands about 50 percent of LCV market share in Kerala and hopes to emulate the success with HCV range.

much ease”, added EVP-Sales, Marketing and Aftermarket, VECV, Somnath Bhattacharjee. The dealership inauguration was attended by a large number of customers from all over Gujarat, financers and other invitees. Many customers were handed over keys of Eicher Trucks and Buses during the inauguration by Vinod Aggarwal. ETB is making strong inroads into heavy duty trucks segment of 16T-40T with ’VE‘ series of fuel efﬁcient heavy duty trucks. Launched during Auto Expo in 2010, the VE series Eicher HD trucks have received a good response from the market with its promise of delivering enhanced value to the customers. Market share of Eicher’s heavy duty trucks’ in Gujarat is increasing and with this new facility, it will

keep the momentum going. The Eicher range of commercial vehicles are known in the market for their low overall cost of ownership and the reason for this can be found in the ‘Eicher advantage’. At the core of the ‘Eicher advantage’ is the vehicle’s highly rated fuel-efﬁciency. Additionally, , all Eicher CVs are also known for their right cargo body sizes, good ability to take the gradients as well as for low maintenance and longer life. These are well supported by an ever increasing network of dealers.

Service coverage is being enhanced by the following measures: • Wide network of over 200 dealers across the country • Higher availability of parts

The inauguration of the Rajkot dealership

• Mobile service vans available at all dealerships • 24x7 helpline with an all-India helpline number Also speaking on the occasion Mehul Dholakiya of Apco

Autosales said “We feel honoured to partner ETB and with our experience and deep understanding of Gujarat market, we would do our best to provide our customers best in class service.”

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1 - 15 September 2011

Vehicle Recycling: An eco-friendly L

ast year, it was reported that sales of new cars have increased by around 30 percent in India. Although people are constantly upgrading their cars to newer models, there are still a signiﬁcant number of vehicles being used for more than 15 to 20 years that are scrapped by the unorganised sector and have serious consequences for the society and ecosystem. Currently, scrapped vehicles are cut and sold by low-tech units in the unorganised sector and operate with low recoveries. Also, crude techniques are implemented that pollute the environment to a great extent. There is an urgent need to upgrade the old

technology and processes and to set up modern facilities with greater capacity to deal with the expected increase in volumes of vehicles due for scrapping.

Need For GARC To address these issues, the Ministry of Heav y Industry in collaboration with the Society of Indian Automobile Manufacturers (SIAM) has installed a recycling and demonstration centre in Global Automotive Research Centre (GARC) in Chennai, which was executed by National Automotive Testing and R&D Infrastructure Project (NATRiP). During the inauguration of the facility, Captain NS Mohan Ram, Chairman of SIAM said, “The modern scientiﬁc recycling unit

Photographs: Bhargav TS

Bhargav TS Chennai

A scene at an unorganised vehicle recycling unit

A car part before being compressed at GARC

like this reduces global warming and greenhouse gases. With efficient recycling, India can recover over 1.5 million tonnes of steel scrap, 180,000 tonnes of aluminium scrap and 75,000 tonnes each of recoverable plastic and rubber by 2020.” According to the Secretary of Ministry of Heavy Industries, S Sundareshan, a demonstration unit like GARC helps create awareness among the recyclers about safe disposal of automobiles and will also serve as a model for industry. The recycling of parts and materials from motor vehicles is not new in the industry. For a long time, metal parts in particular have had a value, either in terms of reuse or recycling. When a car reaches the end of its useful life, it is usually passed on to a vehicle dismantler. The dismantler will remove parts that can be sold for reuse, extract the potential environment polluting materials such as operating fluids and batteries, and then sell the hulk on to a shredding operation. Shredders are high capacity hammer mills that break the hulk in to fi stsized parts. Ferrous metals are then removed by magnetic separation and non-ferrous metals are sorted both mechanically and manually.

Composition Upgrades In modern vehicles, the composition of the car has improved substantially over the years. For example, ferrous metal content has decreased signiﬁcantly as lighter and more fuel-efﬁcient materials such as plastics have been incorporated into the vehicle design. Around 76 percent of the weight of the average car is metal, most of which comprises steel sheet. As mentioned earlier, the overall metal content of

1 - 15 September 2011

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method of reusing car scrappage cars has declined rapidly over the past 20 years accompanied by an increase in the proportion of non-ferrous metals such as aluminium and magnesium. Currently, around 98 percent of the metals in cars could be recycled. These metals are recovered by the dismantling and metal recycling industries and are subsequently recycled by the steel industry and re-smelting plants in the production of new steel and secondary metals such as aluminium and copper.

The Plastic Edge Plastics used in the car industry have risen considerably. Two decades ago, the average plastic content was 8.5 percent and today, the plastic content is around 11 percent. Plastics are

A demo unit like GARC helps create awareness among the recyclers about safe disposal of automobiles and will also serve as a model for industry. Currently, there are no regulations in India to deal with the disposal of ELVs. GARC will be a good example for other such centres pan India used for their distinctive qualities, such as impact and corrosion resistance, in addition to reduce weight and cost. Due to its lightweight properties, the use of plastics can lead to considerable energy savings, for example, if a car weighs 1.3 tonnes without plastics, it consumes approximately an additional 1,000 litres of fuel during its life compared to a car weighing 1.1 tonnes with plastic. Despite the relatively high recycling rate for End of Life Vehicles (ELVs), the proportion of plastics from ELVs being recycled is extremely low. One reason for this is the wide variety of polymer types used. IdentiďŹ cation, by marking components at production or by improved sorting technologies, will be vital if the practice of recovering plastic parts is to become viable. One of the few plastic parts currently being recovered from ELVs is battery cases, accounting for 5,000 of the 14,000 tonnes of automotive plastics. The most common automotive plastics t y pes are polypropylene (PP), polyethylene (PE), polyurethane (PU) and poly vinylchloride (PVC). PP accounts for approximately 41 percent of all car plastics (common in bumpers, wheel arch liners and dashboards), and like PE and PU (most commonly used in seat foam and gear knobs), which can be easily recycled. The operating fuels of the vehicle is the another major concern during vehicle recycling, the effects of inappropriate treatment of f luids removed during servicing are also significant. Increasing amounts of engine oil are being recovered and recycled however lubricating oil has the greatest pollution potential.

Regulating Recycled Resources Most of the waste oil collected for recovery is processed (by removing excess water and filtering out particulates) and used as a fuel burnt in heav y industry and power stations. However, stricter emission limits and fuel quality controls resulting from environmental legislation could mean a reduction in the amount of waste oil used in this way. The batteries which are removed from the vehicles requires a separate collection, including those containing more than 0.4 percent lead by weight, which includes vehicle lead acid batteries. There is a well-established system for the recovery of lead acid car

batteries with many local authorities and garages having collection points. The recycling rate for car batteries is estimated to exceed 90 percent. However, a signiďŹ cant number of batteries are still not recovered and recycled (for example, many scrap cars still contain batteries when they are shredded). A revision of the existing battery legislation is currently being undertaken. Currently, there are no regulations in India to deal with the disposal of ELVs. Two-wheelers which account for 80 percent by number and about 40 percent by weight are particularly important in India. The recycling centre at Chennai is a model unit and can expect many centres like this pan India.

Identification, by marking components at production or by improved sorting technologies, will be vital if the practice of recovering plastic parts is to become viable

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1 - 15 September 2011

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Talbros sets up two new plants, ramps up capacity Shambhavi Anand New Delhi

albros Group, a leading steering and suspension components supplier, has set up two new plants one each in Pune and Orgadam near Chennai. The group has also ramped up its production capacity percent in order to be able to meet the demands of its OEM and aftermarket business. The new plants, which have commenced production recently, are producing steering and suspension parts. The component manufacturer had set up another plant in Sitarganj (near Rudrapur) last ﬁ nancial year. This plant produces gaskets for three major OEMs in Pantnagar, namely Tata Motors, Ashok Leyland and Mahindra and Mahindra.

“Apart from setting up new plants, we have ramped up the capacity of our existing plants by up to 30 percent,” Chief General Manager, Sales and Marketing, Munish Malhotra said. The group has manufacturing units spread across the nation. Out of the 13 manufacturing units that the group owns, some of them are located in Gurgaon, Faridabad, Chennai, Pune and Uttarakhand to name a few. It has a research and development centre equipped with testing facilities. Talbros started its manufacturing journey in the year 1956 by manufacturing automotive components like gaskets. The company is well known for the automotive components like steering and suspension components, gaskets, stampings, rubber products and forgings.

The group has several joint ventures and collaborations with global players like Federal Mogul from USA, Nippon Leak less Corporation from Japan, Afﬁ nia Group from the USA and more recently formed venture with Presswerk Krefeld (PWK), Germany. It exports to countries like the USA, the UK, Argentina, Ita ly, Thailand, and Japan among others. “We are open to new export destinations in case an interesting opportunity comes our way,” Malhotra said. In the last financial year the group touched a turnover of `1,550 crore. It expects to perform better this year. It supplies to OEMs like Ashok Leyland, Bajaj Auto, Cummins Group, VE Commercial, Escorts Group, Force Motors, General Motors, Hero Honda, Honda,

Corporate Office of Talbros

Hyundai, John Deere, Mahindra and Mahindra, Maruti Suzuki, Suzuki, TAFE, Tata Motors, Tata Cummins, Simpsons and international corporate like Affinia, Carraro, Dana, General Motors, Kubota, JCB India, Nissan. It is a single source supplier to Mahindra Navistar and Fiat

India. The component manufacturer also supplies to tractor manufacturers like Sonalika and New Holland Fiat. Daimler is the latest addition to Talbros’ client list in India. Talbros Group portfolio also includes MercedesBenz dealership, T and T Motors, for passenger cars.

Vocollect to offer warehousing solutions Shambhavi Anand New Delhi

he US-based voice directed workflow solutions provider, Vocollect announced its entry in the Indian market with voice-centric warehouse solutions. The company which has automotive companies like Ford, Toyota, General Motors and BMW among others as its clients is targeting both vehicle manufacturers as well as suppliers in the country. “India’s domestic logistical demand is vast, and more so in the automotive sector. The country is witnessing demand for world class supply chain management practices. We can help the business in the country build modern warehouses using voicecentric solutions,” Vice President and Managing Director, Vocollect Asia pacific, Vance Lau said. The company expects to earn around a million US dollars in the fi rst year of its operation in India from the automotive sector. The voice-centric warehouse solutions of Vocollect are being used by quality experts like Toyota. The solution has helped companies increase efficiency up to 25 percent. Vocollect has partnered with Bartech Data System to handle the sales, distribution and after sales services. The local partner has a better understanding of the requirements of the customers and hence can be of immense value, Lau said. The voice enabled solutions will increase the convenience of the warehouse workers, better than other warehousing solutions like RF Scanning Systems. It also supports a headset which can be an advantage in noisy factory environment. In India, the solutions will be available in three languages—English, Hindi and Tamil. The company enables to distribute more than $3.5 bn worth of goods on a daily basis through the voice-centric solution. The portfolio of the solution integrates with existing WMS or ERP including SAP which will help companies leverage existing technology. It has nearly 1,700 customers globally in 60 countries. Automotive sector contributes 20 percent to the revenue of the company.

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RODE link to information management RODE 2.0

Bhargav TS Chennai he Chennai headquartered Ramco Systems has launched an Extension Development Kit (EDK) and a Portal Development Kit (PDK). These two new applications were added to the Ramco OnDemand Enterprise Resource Planning (ERP) 2.0 (RODE) to enhance the applications of RODE 2.0 which links OEMs and component manufacturers. The software is pay-per-use model, where applications and software are available over the internet and one pays as per the usage without owning them. In a recent interaction with Auto Monitor, Chief Architect, Ramco OnDemand ERP, Sundara Raman said, “RODE 2.0 provides a

large magnitude of cost savings to customers, by reducing the total cost for small and medium enterprises as well as large enterprises. It was built on Ramco’s Software as a Service (SaaS)-based model, which adds signiﬁcant functionalities, features, and modules to the offering.” The biggest cha llenge of the auto industry is to ensure that there is a timely supply of materials and to manage the supply chain. This particular model helps to bridge these

gaps even in SMEs to access the best technologies, so that they can actually deliver goods for their customers as well as OEMs in time. Asking about the return on investments, Sundara Raman said, “Before the launch of this SaaS model, the users have to invest a minimum of `20 lakh in getting the software that has a running cost of another `eight lakh per annum. The main advantage of this software is that there is no initial invest-

Photograph: Bhargav TS

Sundara Raman, Chief Architect, Ramco OnDemand ERP

ment to be done, just they need to subscribe, and most importantly, the software is not static. According to new trends, these evolving online software will be upgraded automatically free of cost.”

RODE 2.0, built on the powerf ul Ramco Virtua lWorks platform, offers customers a rich user interface and a unique set of extension and customisation capabilities. It can successfully handle thousands of business transactions and complex functionalities such as MRP, across different industries simultaneously on a single instance of software. It will also support the requirements of new industry verticals such as trading, auto and auto component manufacturers and dairy. ERP is an information management system that integrates and automates many business practices associated with the operations or production and distribution aspects of a company engaged in manufacturing products or services. This platform helps the auto component manufacturers who face immense pressure to meet delivery schedules. They require a schedule that can integrate the firm’s production facilities with other constituents of the supply chain and provide realtime accurate information on inventory, production schedule and materials availability to meet delivery schedules. The earlier versions of this software were addressing the Tier II and Tire III suppliers, now the spectrum of the users has increased from the OEM to the end supplier of the part manufacturer. This will help the entire industry with respect to better compatibility, tighter inventory control which can reduce inventory holding costs, and more effective planning that can in turn reduce total operations costs.

A Complete Solution The soft ware a lso provides a solution for inventory tracking, order management, work-i n-prog ress t rack i ng, tracking pending shipments, schedu le-based dispatches, customer and supplier porta l, mater ia l requ irement planning, capacity planning, inventory analysis and inward subcontracting. On the rationale of adopting ERP practices, Sundara Raman said, “In every company, there are several little islands of information. The idea is to integrate, for example, the financial department with inventory, to bridge the gap between the several islands of information in the company so that planning and forecasting can be made easier. Eventually, there should be no gaps in the financia l management systems,” he added. The subscription price varies depending on various factors such as complexity of the business process being adhered to, number of locations, number of companies and ﬁ nance books and training needs. The monthly subscription cost for the usage of the product and it is based on the number of users and the role of the users. Ramco Systems recorded an overall turnover of $47.41 million last ﬁ nancial year and expecting to foresee about 25 percent top line growth over last year. The thrust area for Ramco would be government and defence, analytics for banking, OnDemand ERP for standard ERP requirements and On-Premise ERP for complex requirements.

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CORPORATE

Globe Components eyes exports to propell growth Bhargav TS Chennai hen na i-ba sed Globe Components has been identiﬁed to supply power steering components by the Tier I supplier, Hema TRW based in Turkey. The company has sent the samples earlier and bagged an order to supply one lakh components monthly to Hema. Based on its developing overseas business and the needs in the domestic market, Globe Components is also expanding its capacity at the cost of `four crore. The company’s Director, R Sridhar, said “We will be supplying one lakh steering components monthly to Hema TRW in Turkey. We will be supplying the same components to Hema TRW, which we are supplying to

Photographs: Bhargav TS

Rane TRW in Chennai.” Globe Components is in the process of expanding its capacity by 50 percent in this ﬁ scal

An array of products by Globe Components

to cater to key customers like Royal Enﬁeld, Delphi TVS, Rane TRW, Rane Madras, Tafe and Same Tractors. “We have invest-

Globe Components plant

ed around `four crore towards expanding our facility and after the expansion, we will be having dedicated manufactur-

ing lines for our customers,” added Sridhar. He added that the demand from the company’s biggest

R Sridhar, Director, Globe Components

Tier 1 customers has been high and the company is evaluating various logistical and other solutions to meet the demand in the most cost effective manner. As an initiative to manufacture the components cost effectively, Globe Components is constantly working on improving its manufacturing process which leads to reduction in the cost of manufacturing. At present, the company manufactures transmission components for two-wheelers and supplies to Royal Enﬁeld, and also manufactures steering system components, fuel injection parts, alternator parts and auto electrical parts for passenger cars. It also supplies few components to Tafe and Same Tractors which accounts for ﬁve percent overall. Globe Components also has steel manufacturing facility in Chennai, which was established in 1989 and produces around 850 tonnes of bright bars. Later in 1996, it started manufacturing auto components, which were made of steel. Therefore the company is not facing any raw material constraints. Cu r rent ly, it ma nu factures 50,000 t ra nsmission components to Royal Enfield, one la k h components to Rane TRW, 80,000 components to Delphi-TVS, 60,000 components to Lucas, 40,000 components to Rane Madras and few manufactures few components to TAFE and SAME. In the current year the company will be supplying additional 15 percent components to all the companies. Last year, the company recorded a turnover of `30 crore and expecting `40 crore turnover by this year which is due to increase in volumes from domestic customers.

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CORPORATE

Indo-Canadian duo to launch SME software Our Bureau Pune

une-based ERP softwaremaker, PCSoft, has joined hands with Canada’s Taylor Group to launch a simplified and low-cost Advanced Production Planning and Scheduling (APS) software. They claim this software tool can empower SME Indian manufacturers, who otherwise have limited fi nancial resources and technical expertise, to optimise their plant floor operations due to real-time visibility and greater management control. So far, APS usage has been the privilege of only large manufacturing corporations with sizable turnovers in India. Through DecisionOne, even small Indian manufacturers and assembly setups will be

able to adopt popular new-age productivity boosting precepts such as Capacity Planning, JustIn-Time Inventory control and Lean Manufacturing. Small and medium sized Indian manufacturers are increasingly aware that the persisting slowdown in world economies provides them with a golden opportunity to ﬁ nd a place in the global manufacturing chain. However, to compete internationally, the typical smallsized Indian manufacturer has to be far more efﬁcient than it has been in the past. Over the years, process analysts and ERP implementers from PCSoft, who primarily serve the manufacturing sector, discovered a great amount of ‘process waste’ emanating from most small scale manufacturers in India. Although

VP, Business Development of PCSoft, Saurabh Dey, signing the JV agreement with President, Taylor Group, Neil Taylor. MD, PCSoft Sateesh Jain, is also present

the concept of ‘process waste’ may seem straight forward, it may be quite nebular to identify. Japanese production experts have famously identiﬁed three broad types of waste: Muda (wasteful activities), Mura (unevenness)

and Muri (overburden). The Indo-Canadian duo claim that the use of professional Planning and Scheduling technology has been acutely missing among small industries in India thus far. Even today, a large

number of manufacturing factories in India use manual methods of scheduling production and planning capacity, especially within setups of small magnitude. Such manual means have very low degree of precision and can prove highly wasteful by leading to problems such as blind procurement, excessively long production cycles, delayed delivery and ultimately unsatisfied customers. Manual production planning typically leads to tremendous waste of manpower, material resources and time, ultimately rendering profit margins to paper thin values, if not running into negatives. Apart from optimisation, APS also enables greater flexibility, since it readily adapts to changes in demand, resource capacity or material availability. The APS software which will be bundled together with PCSoft’s ERP package as a supplementary add-on provides colour coded GANTT charts to visually optimise real-time workloads in various stages of production. Using this software, not only will the plant’s overall function become optimised, material resources saved, and manpower utilisation improved—delivery quotes given by the manufacturer to customers will be very accurate, since promised delivery dates are based on the realities of the plant’s operations. At any given time, the top management can view the forthcoming week’s agenda (and workload) for every given ‘resource’–including workcentres, large machines, small machines, tools, dies, operators and unskilled labourers. While explicating how the software application functions PCSoft’s Managing Director, Sateesh Jain, explained “When orders arrive at the factory, they are punched into the ERP which passes data onward to the APS tool and this automatically systematises production based on priority and optimal machine usage. At any time, planners and top management can see many orders are in pipeline, status of each order’s fulfi lment and how much spare capacity is available to accept more orders. Our APS supports both built-to-order and built-to-stock types of operations”. Consistent with the precepts of Lean, Kaizan and Toyota Production System (TPS), the APS tool provides the kind of superior visibility required to discern between productive and nonproductive activities, and then counter inefficiencies by increasing utilisation of key resources. APS can also handle plant floor contingencies like sudden machine breakdown, equipment repair, holidays/vacations, operator absence and shortage of feedstock. For instance, in the case of unexpected breakdown to a machine, the load is automatically adjusted to other matching machines with spare capacity. The Indo-Canadian duo explicated that DecisionOne is the fi rst APS tool focusing squarely on SMEs. While traditional APS tools are highly complex and require great technical expertise as well as fi nancial resources to utilise, the Indo-Canadian duo claim Decision One is easy enough and cost effective enough for small scale Indian companies to leverage.

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CORPORATE

Metafab Engineers starts sheet metal manufacturing

arage equipment maker, Meta fab Eng i neers, based in Faridabad (Haryana), which has recently started manufacturing of sheet metal auto components, is now planning to diversify into manufacturing equipment to repair FMCG products. “We always wanted to enter auto component sector, and eventually from this April we have started with production of sheet metal components”, Director, Amit Chopra told Auto Monitor. The company had started as a Tier III supplier of sheet metal components to companies including Talbros, Havell Electric and Eloﬁc Filters. By the end of this year, Metafab is expected to become a Tier II and soon Tier I

Photograph: Nabeel A Khan

Nabeel A Khan New Delhi

Amit Chopra, Director, Metafab Engineers

supplier, he said. In the last three months, it has produced over 58 components, for both, the twoand four-wheelers and hopes to earn revenue of around `20 lakh from this segment. The company with its forte in hydraulic lifts, is planning to expand its garage product portfo-

lio in the four-wheeler segment. It has just started manufacturing two- post lifts for the four-wheeler segment. It has also introduced garage equipment for agriculture equipment where it wants to strengthen its presence. The company is setting up a new factory spread across one acre in Faridabad, which will be a dedicated to manufacturing lifts. It is currently producing around 10 to 20 units per month. Metafab is planning to increase it to 400 units per month once the new factory is in place. The garage equipment maker has already invested over `eight crore in the new unit which will be operational in a couple of months. The main target customers will be those who buy such equipment from China. It will directly connect with the distributors who sell the Chinese products. The

products will be priced competitively with the Chinese products as it has made many strategic changes. However, it will not invest in marketing, which generally accounts for a major slice of a company’s expenditure. Metafab is major garage equipment manufacturer of twowheelers supplying over 300 different products in this segment. In another effort towards innovating, it is developing a de-carboniser which will help de-carbonise the surfaces of engine valves, eventually preventing pollution. These types of products are majorly incorporated in four-wheeler garage equipment, but so far they have not been used in two-wheelers much. “Our outlook is about why should we work towards reducing pollution? Rather, we should talk about preventing pollution. By designing this

product, we are working towards the prevention of pollution,” Chopra maintained. Looking at the increasing presence of super bikes with the entry of bikes like Harley Davidson and BMW, the opportunity in the big bike segment has increased. In order to en-cash this opportunity it has developed new lifts for these bikes. It is also developing new products like automated bike washers with steam as a main force, to compensate the water scarcity. With this new technology, precious water can be saved as this machine will convert it into steam then condense it to water. Apart from this, the company has a slew of plans including garage equipment for ATV bikes, which are in demand in the few places including Bangalore and Pune.

SVPC to expand capacity, product portfolio Akmal Rahman B Chennai ri Venkateswara Precision Components (SVPC) is setting up a manufacturing facility in Chennai to make sheet metal components. This will be the company’s fourth manufacturing facility in the country and will commence commercial production from the ﬁ rst quarter of next ﬁ scal. The new facility is around 10,000 sq ft and is being set up at an investment of around `seven crore. SV PC manufactures dust covers, base plates, door checkers, oil and water pump covers in its current facilities in Chennai and Pondicherry and

Photograph: Akmal Rahman B

T Raj Kumar, CEO, SVPC

supplies to Hyundai, General Motors and Ford through Tier I suppliers like TVS Autolec and Iljin Automotive. Presently,

the company has 150 tonne of raw materia l processing capacity and it is planning to double it by next fiscal. Recently, the company has installed new machines at its testing facility to check the f latness of the component by dimensional testing. The new facility will have inhouse electro-deposition coating service. “Currently electro-deposition coating is being done by subcontractors, which sometimes end up in delay due to transition time, so we have decided to have our own inhouse facility to serve our customers on time,” said the Chief Executive Officer of SVPC, T Raj Kumar. It has recently invested `one

crore in tool manufacturing facility by installing CNC machines. This helps in reducing tool development lead time from eight weeks to four weeks. With the new manufacturing facility in place, the company is targeting new customers like Nissan, Renault, Volkswagen and others. “Since sheet metal is a core business and it has high demand in automotive industry, we are looking for new orders from major OEMs,” he said. The company manufactures small and medium size sheet metal components based on customers’ requirements. SVPC also manufactures electrical products for industrial and domestic usage. “We manufac-

ture components that are fully finished, semi-finished and sub-assemblies depends on the customers requirements,” he said. It supplies electrical products to companies like, ABB, GE, Siemens, L&T and Schneider. The company was tied up with UNIDO to develop its manufacturing standards, productivity and technological standards. “UNIDO has helped our company to set a benchmark in the manufacturing industry,” he said. SVPC’s consolidated turnover last year stood at around `30 crore. It is targeting a turnover of `100 crore by 2015 by expanding the existing automotive business and by inorganic growth.

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1 - 15 September 2011

TECHNOLOGY

NI DIAdem 2011 expedites analysis, reporting Our Bureau Chennai

ationa l Instr uments recently announced NI DIAdem 2011, the latest version of the software tool speciﬁcally designed to make engineers and scientists more efﬁcient when locating, inspecting, analysing and reporting on measurement data. The software gives engineers a new data-loading method for access to large data sets in less time than before, a new DataPlugin Wizard for Microsoft Excel to easily migrate from Excel to DIAdem and enhancements to the DIAdem Report panel for a richer, more dynamic report creation experience. Analysing and reporting time-based measurement data presents unique challenges that DIAdem overcomes out of

the box. DIAdem is optimised to operate on large data sets, includes engineering-specific analysis tools and features powerful report and script creation editors for automating repetitive data-processing tasks. With new f lexible loading options in DIAdem 2011, engineers can choose to delay loading bulk data from Technical Data Management (TDM) and TDM Streaming (TDMS) fi les until absolutely necessary. This unique approach references data in place on disk during analysis and reporting without compromising the integrity of the original data stored in the fi le. With this approach, engineers achieve rapid access to data without concern of unintended alterations to original fi les. The software also introduces a new DataPlugin Wizard designed

for straightforward integration of spreadsheetbased data fi les such as those created using Microsoft Excel and OpenOffice. Usi ng t he DataPlugin Wizard for Excel, engineers quickly and interactively can teach DIAdem to recognise the structure of similarly organised fi les. Afterward, they can immediately load Excel data into the environment and process it using the productivity gains that DIAdem provides including large data set capacity, synchronised visualisation and integrated advanced analysis and management tools.

DIAdem Intro Page

DIAdem 2011 Automotive Engine Test Report

DIAdem Report has undergone fundamental changes that are instantly advantageous during template-based report creation. Anti-aliasing improves general report quality by yielding cleaner imagery. Interactive axis scaling makes precise graphs and charts easier to create, and dynamic curve comments and

snippets automatically update with formatting changes so that reports are always publication-ready. Additionally, a redesigned report management dialogue features ﬁ ltering and duplication capabilities so that engineers quickly and easily can expand larger multi-page report templates.

Haas Automation launches latest ST-40 turning centre Our Bureau Chennai

Offers 4 weeks comprehensive course Batch 4 05 - 30 Sep 2011, Bangalore

he new Haas ST-40 is the latest—and largest—addition to Haas Automation’s line of new generation turning centres. It was designed from the ground up to be extremely rigid, highly accurate, and very thermally stable. All castings were optimised using fi nite element analysis (FEA) to produce the most rigid designs, while improving chip and coolant flow, and simplifying maintenance and service. The spindle head features a compact, symmetrical design for thermal stability and rigidity, and the 45-degree wedge design greatly increases the tool-mounting envelope and improves chip flow. ST-40 Turning Centre

IMTMA’s “FINISHING SCHOOL IN PRODUCTION ENGINEERING” will train young engineers on all aspects of Production Engineering. ŸEngineering Drawing ŸLimits/Fits & Tolerances ŸGD & T ŸSoft Skills

ŸProcess Planning ŸSelection of Cutting Tools ŸCNC Programming ŸImproving employability

ŸCNC Machining ŸCAD/CAM ŸInspection & Metrology

This course will enhance skill sets of fresh engineers in Mechanical Engg. with a blend of Practical sessions, Hands-on training on CNC Turning & Machining Centres with industry visits.

Eligibility : Fresh engineers (BE/Diploma) in Mech engg or allied disciplines and New recruits / Trainee engineers / Practicing engineers from industries Venue : IMTMA Technology Centre, BIEC, Bangalore

For further details and registration please contact :

Mr. Anuj Kumar Phone : 080-66246514/66246600 E-mail : anuj@imtma.in Website : www.imtma.in

The ST-40 has a maximum cutting capacity of 647 mm x 1,117 mm, with maximum swings of 1,016mm over the front apron and 635 mm over the cross slide. The spindle bore is 117 mm, with a bar capacity of 101 mm. The machine’s 30kW vector dualdrive spindle turns to 2,400 RPM, and provides 1898 nm of torque. For heavy cutting operations, an extra-performance spindle option is available that provides 41 kW and 2847 nm of torque. Both spindles feature on-the-ﬂy wye-delta switching that yields a wide constant-horsepower band for constant surface feed cuts. The ST-40 features an A2-8 spindle nose and comes equipped with a 381 mm hydraulic threejaw chuck. A 12-station bolt-on style tool turret is standard, with options for a VDI turret or hybrid BOT/VDI turret. Other standard equipment includes rigid tapping, a 15” colour LCD monitor, and built-in USB connectivity. Available high-productivity options include a belt-type chip conveyor, a servo-driven tailstock, automatic tool probe, live tooling with C axis, an automatic parts catcher, high-pressure coolant systems and much more. A long-bed version of the new turning centre, the ST-40L, is double that of the ST-40, for boring long shafts and tubing.

1 - 15 September 2011

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CORPORATE

India’s share in global trade will double by 2020 Our Bureau Chennai

ddressing the Export Summit organised by the Confederation of Indian Industry (CII) in New Delhi recently, Minister of Commerce and Industry, Government of India, Anand Sharma, emphasised the need to increase India’s share in global trade which is currently less than two percent. He said that India will achieve its target of doubling its share in global trade in goods and services by the target year of 2020. Sharma emphasised t hat t here has been a n increase of 114 percent in manufacturing sector exports since the global crisis. However, he raised a concern that the contribution of the manufacturing sector to India’s GDP is mere-

Industry participation needed for implementing FTA Our Bureau Chennai

wenty years ago, Free Trade Agreements were almost inconceivable in India, said Commerce Secretary, Ministry of Commerce and Industry, Dr Rahul Khullar at the Second Export Summit organised by Confederation of Indian Industry (CII). Unilateral tariff reductions were undertaken not because it was imposed on us either by the WTO or the trading partners but was beneficial for the economy and facilitated trade. He said that it led to change in the rules of engagement with the world. However, tariffs on items of commercial interest to India such as gems and jewellery have not been lowered in the developed world. Khullar continued that India remained multilateral until 2000 but began taking initial steps towards FTA and CECA negotiations in 2004. In terms of the geographical dimensions to signing FTAs, the emphasis has so far been on Asia. FTAs have been signed with nations such as Thailand, Singapore, Malaysia and Korea and regional groupings such as ASEAN. High growth rate, huge market opportunities and depressed economic conditions in the industrial economies are the key drivers of negotiating FTAs with the emerging nations. Elaborating further, he said that in negotiation of FTAs, the government seeks to consult the stakeholders both before and afterwards. The process of stakeholder consultation has been institutionalised. He appealed to CII to help out with this initiative of national outreach programme on FTAs. Around 10 FTAs, five PTAs are in place and 16 more trade agreements are under negotiation. FTAs are a win-win situation for both the signing nations. Exporters from all the segments, small, medium and large benefit from these. Releasing a CII Report, ‘Engaging with China: A Study’, Khullar emphasised the need for targeting large markets like China thereby boosting India’s exports. In order to compete with China in the global markets, it is crucial that Indian industry should focus on its areas of strength.

ly 16 percent as compared to over 22 percent in other developing countries. He assured the audience that India is set to achieve $550 billion exports by 201415. He also mentioned that all consultation rega rding t he National Manufacturing Policy has been completed and that a national manufacturing policy will be announced in the next few weeks. Emphasising the need to diversify the export destinations of Indian products, Minister Sharma said that growth is currently coming from Africa, South America and the ASEAN countries. He said that not every part of the globe has been hit by the global slowdown and the countries in these regions are growing even if the traditional markets have been slowing down.

There has been an increase of 114 percent in manufacturing sector exports since the global crisis. India is set to achieve $550 billion exports by 2014-15. Growth is currently coming from Africa, South America and the ASEAN countries Anand Sharma, Minister Of Commerce & Industry

He said that India has the responsibility to create employment for the young entrants to the workforce who constitute almost two third of the popu-

lation. He emphasised on the necessity to invest in research and development and the need to come up with National Mega Manufacturing Zones to create

jobs for the huge work force. The Minister mentioned that services, manufacturing sector and investments are the three pillars of the Indian economy and that the Government has been focusing equally on all three pillars while negotiating trade agreements. Speaking at the same Summit, Past President, CII, Dhruv M Sawhney pointed out the need to reinvigorate the Indian manufacturing sector and to lower transaction costs in order to increase Indian exports. Earlier, Director General, CII, Chandrajit Banerjee, while welcoming the Minister mentioned that CII supports the FTAs being negotiated with various countries and said that he was conﬁdent that industry’s viewpoints and inputs will be incorporated in the ﬁ nal documents.

1 - 15 September 2011

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ADVERTORIAL

India’s Manufacturing Success Story During the past decade, India has witnessed signiﬁcant increase in the number of manufacturing facilities in the country—so much so that the country has been ranked as one of the fastest growing markets with tremendous domestic potential. However, despite the manufacturing sector’s rapid growth, India remains grossly underinvested in factory automation—a key ingredient for long-term competitive success in both domestic and foreign markets. By Peter Neve, Vice President of Global Marketing, Cognex Inc

uring the last decade, India has emerged as one of the key manufacturing hubs for global manufacturing companies in pharmaceutical, packaging, food processing, textiles industries and in particular the automotive sector. In 2010, Deloitte Touche Tohmatsu ranked India as offering the second best global manufacturing platform in the world, above traditional manufacturing countries such as the U.S., Germany, and Japan. And while low-cost energy, labour, and regulations are often cited as critical drivers for a growing manufacturing sector, the Deloitte report says that innovation combined with a strong talent pool of scientists, researchers, and engineers is even more critical to manufacturing growth on the global stage. Within the country’s borders, India’s manufacturing sector is considered a critical driver for economic growth and improved standards of living. Domestic manufacturing accounts for nearly 17% of India’s total GDP and employs nearly 100 million people (per ASSOCHAM estimates). Frost & Sullivan’s IPC Practice predicts that by 2020, India’s manufacturing sector will generate 25% of the country’s GDP. However, Frost & Sullivan analysts add that India’s manufacturing growth will only be realised through the adoption of factory automation that enables greater efﬁ ciency, productivity, sustainability, and global competitiveness and standards compliance. Despite India’s recent success, its domestic manufacturing industry faces stiff competition from emerging manufacturing hubs in Asia and South America. Increasing material and labour costs coupled with process inefﬁciencies are dulling Indian’s competitive edge. The answer lies in adopting appropriate automation, innovation, and technology, with early adopters gaining a competitive advantage in both domestic and export markets. The message is clear: India’s future depends on adopting innovative processes and procedures to empower its talented, English-speaking workforce.

India, Automation, and Global Competition From a historical perspective, automation in India has been viewed as a shop ﬂoor tool rather than a “business performance enabler.” When it comes to core manufacturing processes, manufacturers in India are traditionally known to rely on labour-intensive methods. Even when factory automation has been adopted, the technology threshold is fairly low when compared to world standards due to lack of knowledge and awareness. Based on t heir prior experience in established man-

ufacturing hubs such as America and Japan, global manufacturing companies in the automotive, pharmaceutical, and food processing industries with operations in India are investing significantly in factory automation to increase efficiency and flexibility of their supply chains while also improving upon product features and quality. An increase in the demand for such solutions is already being witnessed in the Asian region. With this in mind, automation roviders now technology providers offer a number of facion tory automation — technologies— includingmachine vision. While manufacturing equipment cs a nd robot ics ucts, “make” products, on is the machine vision tool that provides quality assurance, product tracking, and documentation for standards compliance. Machine vision— essentially an industrial camera connected to a computational engine running special software—enables manufacturers to make quality, low-cost products while reducing overhead by eliminating fl aws and errorproofi ng the assembly line.

Machine Vision: Key to Improving Quality, Productivity Machine v ision systems address the critical areas in the manufacturing process through a concept called as GIGI which compr ises of Gu ida nce, I n spec t ion, Gauge a nd Identification. • Guidance means the use of vision to locate a part, feature, or pattern to automate the mechanical handling of that part during assembly, material handling, and packaging processes. An example might be the use of a vision system to aid a robot in picking up a part from a conveyor belt and placing it into a container • Inspection refers to presence or absence checking: dimensional checking where manufacturers want to make sure that a part is manufactured to some critical dimension; and defect or flow location on the surface of a part. • Gauge refers making critical measurements such as lengths, diameters, angles and counts to determine whether manufactured product is within specified limits. They allow the symmetrical axes of the product and the distances in relation to the axes to be calculated. They also enable many set-up operations to be made in an extremely fl exibly manner, and the item’s dimensions to be recorded. For any reason if the gauged parameter does not fall within tolerance limits, the component or part is rejected.

• Identiﬁcation refers to tracking and tracing raw materials, components, and products throughout the entire production cycle. Machine v ision-ba sed ident i f ication systems can track any industria l code, including engraved or embossed serial numbers placed on a product, telling the manufacturer exactly how, when, and where it was produced, as well as the raw materials used to manufacture the product, supplier identiﬁcation, and any number of other important production data. Machine vision systems’ ability to read two-dimensional bar codes has made this possible. 2-D codes are similar to the 1-D barcodes found on food in your local grocery, but unlike 1-D codes read by laser scanners, 2-D codes can more accurately read a great

Automotive Industry — Inspection of 30+ Features

In-Sight Vision Systems

www.cognex.com deal more information for the same equipment costs. Machine vision systems can be broadly categorised into two different types of systems that use the same underlying technology: Identification (ID) Systems and more powerful Vision Systems. When used separately or together, machine vision systems help manufacturers to improve their manufacturing process, cut costs, and stay competitive in global and domestic markets. ID Systems create total visibility and measurement within a manufacturing unit by automatically retrieving codes and other identifying marks on raw materials, components, and products as they move through the manufacturing supply chain. ID Systems enable accurate, timely information about a specific item, which can be stored, retrieved, and analysed in easyto-use manufacturing databases that, in turn, help manufacturers with: • Automated decision making and control functions relevant to that product or process • Removing hidden inefficiencies in material handling productivity • Tracking the real flow of operations by measuring real-time production data Vision Systems improve the manufacturing process by providing the ability to Guide, Inspect and Gauge parts—as well as Identify products—to assure the quality of a wide range of items during the manufacturing process

Cognex and Indian Manufacturing: Partners in Productivity W hile machine vision in manufacturing may be a relatively new concept to some Indian manufacturing companies, Cognex has already proven its ability to help global auto companies increase productivity and standards compliance while reducing costs by cutting defective product, rework, and unnecessary shipping costs. A manufacturer of diesel

Cognex’s Machine Vision Enhance Factory Automation Cognex Corporation is the world’s leading supplier of machine vision systems—or computers that can “see.” The company’s ID and Vision systems address all critical areas in the manufacturing process: guidance inspection, gauge and identiﬁcation, in a wide variety of industries, including automotive, electronics, pharmaceutical, food processing & packaging, and consumer goods, to name a few. Cognex’s image-based ID systems can meet all of your 1-D barcode and 2-D codereading requirements. The company’s DataMan® ID readers can read 1-D code symbologies such as UPC, PDF, and postal codes; 2-D code symbologies such as Data Matrix and QR; or a mix of barcode and 2-D codes simultaneously. Since its inception in 1981, Cognex has shipped more machine vision systems than any other company on the planet–more than 500,000 and counting–representing more than $2.5 billion in cumulative revenue. engines faced the challenge to ensure the traceability of each engine part during the production stage. Cognex helped the manufacturer by placing a Direct Part Mark (DPM) at the beginning of the manufacturing process. The code is read after every critical step of the production process. Cognex DataMan 8000 barcode reader was introduced to read the part before and after every production step. A reliable reader was required since many of these steps degrade the mark and the mark color may change after metal thermal processes. By doing so, the supplier prevents missing steps of the productions

and measures the performance of the line workers. Another company which benefited from Cognex’s products and solutions was a semiconductor plant providing electronic assemblies to automotive manufacturers which needed to identify the PCB legend. Each electronic carrier has multiple substrates or PCB’s prior to singulation. In order to serialize each PCB, a very small 6mm 2D code is laser etched on the border or legend of each card. Cognex DataMan 100 for automated lean cells and DataMan 7500 Verifier for verification were introduced to provide WIP for their process as well as documenting each test procedure at each OP point. The manufacturer used a single simple confi guration program for the handheld readers and verifiers for grading purposes. These two examples show how Cognex’s position as a market leader in machine vision automation and quality assurance can help Indian automobile and component manufacturing companies reduce costs while improving throughput and quality. For more information, please visit www.cognex.com.

About the author Peter Neve is Vice President of Global Marketing, Cognex Inc. Peter Neve is responsible for Cognex worldwide marketing and training activities. These include positioning Cognex as the number one supplier of machine vision and industrial ID systems in all markets, running a lead generation engine to identify new projects at all major manufacturing companies and providing product training to the ever growing customer base. In addition, Cognex marketing also support and carry out joint marketing activities with a worldwide network of over 400 channel partners. Peter has a great depth of experience, having been with Cognex for over 10 years and has worked in the machine vision industry for more than 20 years.

It’s about time.

ECO CNC

A CYCLE TIME REDUCTION MACHINE Turning and milling complex parts on a single machine will minimize part handling, increase throughput, and improve accuracy. Introducing the all-new Haas DS-30Y dual-spindle turning center with integrated Y axis, live tools, C axis, and a host of upgrades – all for a great price.

Typical Haas Ingenuity. Haas Automation

Simple. Innovation.

Haas Factory Outlet – India locations NORTH, WEST AND EAST AREAS: telephone – 022-27742181, 9320178231 SOUTH AREAS: telephone – 080-41179452 / 53 Email: indiasales@haascnc.com | www.HaasCNC.com | Made in the USA

Auto Monitor

CORPORATE

1 - 15 September 2011

StarragHeckert breaks ground for factory Devanahalli Our Bureau Chennai

tarragHeckert Machine Tools, India held the groundbreaking ceremony for its new greenﬁeld manufacturing facility in the Devanahalli Aeropark, Bangalore. With a total capital investment of `65 crore, StarragHeckert’s new facility aims to meet the growing demands of the Indian and Asian markets. The company is targeting 10-15 percent of the four-axis HMC market from sectors such as trucks, tractors, earth movers, valves, machinery. Around 30 percent of the production will be exported to meet the needs of the Asian market. The new factory, coming up on eight acres of land, will be built in two phases and the ﬁrst phase with a built up area of one lakh sq.ft. is scheduled to be completed in 12

months, while the roll out of four-axis horizontal machining centres will begin in 24 months. An additional one lakh sq. ft. of built up area would be added during the second phase over a three-year period. The new facility will initially manufacture 60 units a year and the manufacturing programme will be scaled up to 120 units a year during the second phase. StarragHeckert will Groundbreaking ceremony of StarragHeckert Machine Tools, India at Devanahalli Aeropark, Bangalore the new facility. duction of ﬁ xtures for the global manufacture horizontal machinmarket from here,” said Managing ing centres—WMW CWK—with “We will target 40 percent of localised inputs in value terms Director, StarragHeckert Machine 400 mm to 800 mm pallet sizes in the new facility. The group also for the WMW four-axis horizontal Tools, India, N Chandramouli. The factory will provide has long term plans to produce machining centres. Very soon we employment for 200 people ﬁve-axis machining centres from may be contributing to the pro-

The new facility will initially manufacture 60 units a year and scale up to 120 units a year. StarragHeckert will manufacture horizontal machining centres— WMW CWK—with 400 mm to 800 mm pallet sizes in the new facility who will be trained through the Swiss Vocational Education and Training Initiative already initiated in collaboration with Swiss-Indian Chamber of Commerce.

Mercedes-Benz India opens Star Lounge Our Bureau Mumbai

s part of its commitment towa rds world class buying experiences, ambience and hospitality in products, Mercedes-Benz India has set up the first ever Star Lounge at the high profile Delhi International Airport (Terminal 3). With exclusive products and a hospitality service like never before, this lounge will provide air travellers a whole new perspective into the world of Mercedes-Benz. The Star Lounge w ill introduce travellers to an inimitable Mercedes-Benz experience, which includes a host of exclusive products and merchandise. This one of a kind concept allows the consumers the luxury of experiencing the look and feel of the products ﬁ rst-hand. Extending the authentic experience, the magniﬁcent SLS-AMG will be on display at the lounge. Even as regular travellers can experience the brand through interactive kiosks, books and brochures, owners of Mercedes- Benz vehicles can indulge in the deluxe hospitality of the brand in a separate café area.

Apollo Q1 sales up by 55 percent Our Bureau Mumbai

espite Apollo Tyres’ consolidated revenues for the fi rst quarter grew by 55 percent, factors like continuing all-time high natural rubber prices, along with sluggish growth in some major markets, had a dampening impact on the company’s profitability for the quarter. While both India and Europe continue their growth path, of particular concern has been the South African economy. With demand failing to pick up adequately, the high cost of manufacturing in South Africa, combined with a growing influx of Chinese tyres, have together posed an enormous challenge to the domestic industry. “This will be yet another difficult year for us,” said the chairman of the company Onkar S Kanwar.

Auto Monitor

1 - 15 September 2011

GLOBAL WATCH TECHNOLOGY

New piston ring coating improves fuel economy The innovative CarboGlide piston ring coating provides low friction and superior scufﬁng protection through the life of the latest-generation gasoline engines

ederal-Mogul Corporation has developed a new piston ring coating that supports vehicle manufacturers’ efforts to make gasoline engines more fuel-efficient. The company’s patented CarboGlide coating delivers a direct improvement in fuel economy and CO2 emissions by reducing ring friction by upto 20 percent as compared to nitride or other commonly used coatings. CarboGlide’s high wear resistance can withstand an engine’s full operational life—even in the latest generation of high-output gasoline engines with turbocharging or direct injection. CarboGlide additionally protects the cylinder surface from scuffing and

scor ing, especially under the most c r it ic a l lubrication conditions, because of it s h ig h chem ica l a nd physical stability. “CarboGlide provides engine manufacturers and vehicle owners with a strong advantage over Rainer Jueckstock, Sr Vice President, Powertrain Energy, Federal Mogul other coated rings Energy, Rainer Jueckstock. “Our in the market by delivering an extremely low friction coefﬁcient, CarboGlidecoated r ings provide engine manufacturers superior wear resistance and long life,” said Senior Vice President, with an immediate, cost-effective fuel economy improvement Federa l-Mog u l Power t ra in

The CarboGlide coated ring

that is easy to implement. The friction-reducing, fuel-economy improvement beneﬁts contribute also to reduce the carbon footprint of gasoline-powered

vehicles,” Jueckstock added. CarboGlide’s superior coating properties are achieved due to a multi-layer microstructure and a special coating composition that contains carbon, deposited in diamond-like form, as well as hydrogen and tungsten. The unique structure can be produced for a coating thickness of 10 microns, more than three times that of the industry’s latest state-of-the-art DLC coating. A specialised advanced process based on the combination of physical vapour deposition and plasma-assisted chemical vapour deposition, speciﬁcally developed for piston ring application, is used in applying CarboGlide. The coating’s multi-

CarboGlide’s high wear resistance can withstand an engine’s full operational life. It provides engine manufacturers & vehicle owners with an advantage over other coated rings in the market by delivering a low friction coefficient, superior wear resistance and long life layer architecture, together with the company’s surface machining and finishing expertise, ensure the integrity of the coating structure, optimal adhesion of the coating and high coating stability on both steel and cast iron rings. “Federa l-Mog ul tests on engines, using both cast iron and high-silicon aluminium cylinder surfaces, have shown that CarboGlide-coated rings minimise friction and scuffing for the full expected life of the engine, even in the challenging environment typical of GDI turbo engines,” said Ma n a ger, Fe der a l-Mog u l, Physical Coatings, Dr Marcus Kennedy. “It is highly stable due to its non-metallic nature. The unique combination of low friction, low wear and scuffing resistance a lso ma kes the technology attractive for application to other FederalMogul products developed for extreme conditions like face seals on construction machinery,” Kennedy added. CarboGlide is Federal-Mogul’s third and most advanced generation of the company’s DLC coated ring technology. The coating was developed in Burscheid, Germany, at one of the company’s 18 globally-networked technical centres. Several leading vehicle manufacturers will launch engines using Federal-Mogul’s CarboGlide-coated piston rings beginning this year. Federal-Mogul will exhibit its CarboGlide-coated rings, along with other leading technologies from the company that improve fuel economy, reduce vehicle emissions and enhance vehicle safety, at the 64th International Auto Show in Frankfurt, Germany.

Auto Monitor

GLOBAL WATCH

International auto round-up EUROPE

Swedish regulator begins debt-collection process against Saab Sweden’s Debt Enforcement Agency has started collection proceedings against Saab Automobile after the cashstarved carmaker failed to meet the deadline to pay two suppliers, according to a report in Automotive News Europe. Saab was supposed to pay Kongsberg Automotive AB, a Norwegian manufacturer of car-seat parts, and Infotiv AB, a Gothenburg, Sweden-based consulting fi rm, a combined four million kronor ($633,000) to avert the proceedings. It was forced to halt production in late March amidst a cash crunch and the automaker’s Trollhaettan factory in Sweden has been quiet since early June. The company is trying to raise more funds and has said it aims to restart manufacturing in a few weeks. Swedish Automobile NV, Saab’s Dutch owner, sold four million new shares to GEM Global Yield Fund in an effort to raise further cash. Another 5.1 million kronor ($792,200) is due to more suppliers in about a week adding that he doesn’t know the amount that it owes. More than 100 debt claims against the company have been fi led with the collection agency, with some companies fi ling more than one claim, and eight proceedings to ask for the regulator’s involvement, an agency spokeswoman said.

Porsche recalls cars worldwide for seat-belt flaw

Porsche is recalling 887 sports cars worldwide for a seat-belt f law that might cause the belts to not work properly, according to a Bloomberg report. The recall, which includes 235 in the US, is for some model year 2011 and 2012 vehicles such as the 911 Carrera, 911 GT3, 911 Speedster, 911 Targa, 911 Turbo, Boxster and Cayman, said Porsche. The voluntar y recall came after the company found a supplier defect causing seat-belt anchor plates to not rotate as intended.

The mounting holes for seat-belt anchor plates might be too small, meaning that the plate might not rotate around the fastening bolt as designed when tightening the belt, Porsche said in the filing to the regulator. Porsche North America sold 18,310 vehicles this year in the first seven months of this year, according to a company release.

Tofas to sell Chrysler, Jeep, Dodge cars in Turkey from 2012 Turkish carmaker Tofas has been authorised by one of its partners Italy’s Fiat to sell and provide post-sale services for Chrysler, Jeep and Dodge cars in Turkey starting January next year. Tofas added that the agree-

ment will include maintenance services for cars sold before 2012. Turk Otomobil Fabrikasi AS is the largest car producer in Turkey and is a joint venture between Fiat and Koc Holding AS, the country’s biggest group of industrial companies.

UK car dealer Lookers still open to sale British car dealer and parts supplier Lookers, which was in offer talks with a consortium led by investor Jack Petchey said it was no longer in discussions with anyone, but was still open to selling the group. Last month, the company, which owns Scottish brand Taggarts and the Charles Hurst brand in Northern Ireland, had rejected a revised offer from Petchey’s consortium. In May, Petchey’s Trefick vehicle, along with Moor Park Capital Partners, a real estate private equity investment advisory firm, and Brett Palos, a venture capitalist and real estate investor, was refused access to Looker’s books after they made a joint offer approach for the company. Trefick owns a 17.3 percent stake in Lookers, which is currently valued at nearly 200 million pounds. Following this offer approach and subsequent rejection of the proposal by the board, Lookers reviewed its strategic options and decided to continue with both its motor and parts divisions. For Januar y-June, the company maintained its pretax profit at 22.6 million pounds (Euros 25.75 million) amid a tough economy. Revenue rose

1.4 percent to 1 billion pounds, helped by strong growth in its parts division.

VW brand sales rise 12.5 percent on China, Russia, America growth New-car sales at Volkswagen AG’s core V W brand showed growth in all global regions in the first seven months, with China, Russia and the Americas leading the way. V W brand global sales increased 12.5 percent to 2.95 million units between January and July compared with the same period in 2010, the company said. Sevenmonth sales in China were the highest, with volume rising 12.9 percent to 991,800. In North America, sales grew 22 percent to 280,900. In South America, the rise was 7.5 percent to 444,100. In Europe, sales increased 8.1 percent to 1.02 million. Of these 556,500 units were sold in western Europe excluding Germany, up 2.8 percent, and 111,800 in central and eastern Europe, a rise of 44 percent. Sales in V W’s German home market increased 8.5 percent to 352,700. Deliveries in Russia grew 105 percent to 56,500. In July, the brand’s sales rose to 419,000 cars, a year-onyear rise of 17.2 percent. V W did not release July numbers for individual markets. V W aims to pass Toyota as the world’s best-selling automaker by 2018. In 2010, V W group including brands such as Audi and Skoda sold 7.14 million units, behind GM with 8.39 million and Toyota with 8.42 million.

1 - 15 September 2011

ASIA Bosch to takeover Taiwan’s Unipoint Group Bosch Automot ive Aftermarket division is set to take over the Unipoint Group, as well as its afﬁ liated companies and the Unipoint and NSA brands. The company is a key producer of starters, alternators, temperature control parts and wiper blades for the aftermarket. In 2010, the Unipoint Group achieved sales of $124 million. It currently employs around 2,360 people at two production locations in China mainland and Taiwan as well as various sales locations. The two companies signed an agreement conﬁ rming the deal on August 9, 2011. The Bosch Automotive Aftermarket division has acquired the Unipoint Group with the intention of strengthening its position as the leading supplier of starters and alternators, and also views it as an investment in the temperature control product segment. In addition, it adds another Asian production base to the wiper blade business unit. The Unipoint Group was established in 1972 and has been majority-owned by its founding family ever since. Aside from the provision, sale and distribution of vehicle parts, this division’s main focus is providing workshops with diagnostics equipment and services, as well as promoting the Bosch Service and AutoCrew workshop concepts. In 2010, the Automotive Aftermarket division achieved sales of around EUR 4.1 billion and employed over 10,000 associates worldwide.

Auto Monitor

1 - 15 September 2011

GLOBAL WATCH

International auto round-up AMERICA

New Maserati SUV to be built at Detroit Chrysler plant

United Auto Workers President Bob King said Fiat’s decision to build a new Maserati sport utility vehicle at Chrysler Group LLC’s Jefferson North Assembly Plant shows what can happen when labour and management cooperate, according to a report in the Detroit News. Maserati would build as an SUV off the same platform as the Jeep Grand Cherokee in Detroit. Maserati is ready to unveil a concept of the luxury SUV at the Frankfurt, Germany motor show in September. The UAW president said the Detroitbuilt Maserati will be sold worldwide, adding that both GM and Ford plan to export vehicles from their factories in the US around the world as well. The UAW is negotiating a new national contract with all three Detroit automakers.

American Axle to close plant in Buffalo after failed negotiations A mer ic a n A x le a nd Manufacturing will close its Cheektowaga ma nufacturing facility near Buffalo, New York after the current labour agreement expires. Members had rejected a ﬁ nal offer from the automotive supplier for an

ASIA

agreement the company said it needed to be competitive. The UAW stance was that workers gave up a lot during restructuring during the downturn, to the point that they no longer make a decent wage. The union members felt the company could afford adequate labour costs after second-quarter earnings of $49.2 million, up from $25.4 million a year ago. In a statement, company officials called it a “very difficult but necessary business decision” to close the plant and blamed a shift in market demand to more fuel-efficient cars and crossovers from trucks. American Axle supplies sturdy axles for trucks such as GM’s fullsize pickups and SUVs. The same reason was given a month ago when the Detroit-based supplier announced it will close its Detroit plant in February. The Detroit plant has 300 workers. A decision has not been made on where the work from Cheektowaga will go, but logical choices include the supplier’s AccuGear plant in Fort Wayne or Colfor Manufacturing operations in Ohio.

selling pace at 12.1 million light vehicles, up from 11.4 million in August 2010, but little changed from July’s 12.2 million units. But retail demand—sales to individuals through dealerships—is up this month from July levels, JD Power said, noting that August is a weak month for fleet sales. “The selling rate in August is expected to be slightly stronger than in July, but without a significant increase in incentive levels or a reversal of the economic woes, there isn’t a compelling reason for those consumers sitting on the fence to return to dealer showrooms and purchase a vehicle,” said Jeff Schuster, JD Power’s Executive Director of Global Forecasting. Edmunds.com, an online research fi rm, estimated this month’s selling pace at 12.2 million vehicles.

Honda will add plant in Mexico

JD Power trims auto sales forecasts for 2011, 2012 JD Power and Associates lowered its auto sales outlook saying the uncertain economic outlook will hinder the market’s recovery not only this year, but also the next. The ﬁ rm shaved its 2011 sales forecast to 12.6 million cars and light trucks from 12.9 million estimated previously. It lowered its 2012 forecast to 14.1 million units from 14.7 million. The company estimated last month’s

Honda plans to build an $800 million plant in Mexico to produce subcompact vehicles for Mexico and North America. The plant is scheduled to begin operations in 2014 with an annual capacity of 200,000 units. Honda and other Japanese automakers seek to move car and truck production from Japan because the strength of the yen makes it difﬁcult to make money on exports.

The automaker did not identify the model to be assembled in Mexico, but the only subcompacts it sells in the United States and Canada are the Fit and Insight and CR-Z hybrids, which are now built in Japan. The new Honda plant will be in a suburb of Celaya, Guanajuato, about 210 miles east of Honda’s two plants in El Salto, Jalisco, where the company assembles automobiles, motorcycles and auto parts. More than 87 percent of Honda and Acura cars and light trucks sold in America were produced in North America last year.

Fuel standards for heavy vehicles will save owners $35 billion The ﬁ rst-ever fuel efﬁciency standards for heavy vehicles such as semis, garbage trucks, buses and heavy-duty pickups will save owners around $35 billion in fuel costs, the National Wildlife Federation said in a recent study. The NWF said the savings will come over the life of the vehicles, and the standards—required by a 2007 law—will reduce fuel consumption 7-20 percent, depending on the class of vehicles. Other vehicles being regulated include dump trucks, cement mixers and large utility vans. The new rules announced by the White House recently cover full-size pickups built by Detroit’s big three automakers that weigh 8,500 to 14,000 pounds. The federal rules, which take effect in 2014 and run through 2018, will hike the fuel economy of large trucks and vans from 14.9 miles per gallon in 2010 to 16.7 mpg in 2018.

Singapore billionaire makes ‘significant investment’ in McLaren Singapore billionaire Peter Lim has made a ‘significant investment’ in UK-based sports car maker McLaren Automotive, the company said. Lim has joined McLaren Automotive’s board with immediate effect. The company said demand for its new McLaren sports car, the MP4-12C, is strong w it h retailers in t he Asia Pac i f ic reg ion c on f i r ming orders that account for around 18 months of production. The McLaren Group also runs a Formula One team. Last year, Lim made a 320 million

pound ($ 525.5 million) bid to buy Liverpool Football Club, but later withdrew the offer after the club went into the hands of New England Sports Ventures follow ing a court ruling. Forbes Asia recently ranked him number eight on Singapore’s rich list, with an estimated fortune of $1.8 billion built mainly from investments. Lim separately has exclusive rights to own and operate a chain of Manchester Unitedthemed restaurants and bars in Asia.

Auto Monitor

1 - 15 September 2011

ADVERTISERS’ LIST CORPORATE

Pg No. ........Advertiser ...................................................................................Tel ..................................................E-mail ...................................................................... Website 36 ..............Abilities India Pistons & Rings Ltd ..............................................+91-120-4623761 ..........................aip.del@aippistons.co.in ........................................ www.aippistons.com 64 ..............ACE Manufacturing Systems Ltd .................................................+91-80-28360508 ..........................ams@bgl.vsnl.net.in ................................................ www.amsindia.net 46 ..............ADEA Awards ..............................................................................+91-22-30034650 ..........................prachi.mutha@infomedia18.in ............................... www.adea.in 9 ................Anand Automotive Ltd................................................................+91-11-26564542 ...........................arpita.bhatia@anandgroupindia.com..................... www.@anandgroupindia.com 19...............Asia Motor Works Ltd..................................................................+91-22-61926146 ............................................................................................................ www.amwasia.com 12...............Auroral Sinter Metals Co., Ltd. ....................................................+886-37-542-988 ...........................sh69032.tw@msa.hinet.net .................................... www.auroral-sinter.com.tw 38 ..............Avery Dennison India Pvt Ltd .....................................................+91-124-2215581 ...........................lpm.in@ap.averydennison.com .............................. www.enhanceyourbrand.com 16...............Coatec India................................................................................+91-160-2648700 ..........................info@coatecindia.com ............................................ www.coatecindia.com 45...............Cognex Singapore .......................................................................+91-80-40224118 ..........................sales.in@cognex.com .............................................. www. cognex.com 57 ..............DJR Delux Bearings Limited........................................................+91-22-24926660...........................info@deluxbearings.com ........................................ www.deluxbearings.com 37...............Ecocat India Pvt Ltd....................................................................+91-129-4266500 ..........................alok@ecocatindia.com ............................................ www.ecocat.com 29 ..............Electronica Hitech Machines Pvt Ltd ..........................................+91-20-30435400 ..........................marketing@electronicahitech.com ......................... www.electronicahitech.com 44 ..............Engineering Expo .......................................................................+91-9819552270............................engexpo@infomedia18.in ....................................... www.engg-expo.com 35...............Escorts Limited ...........................................................................+91-129-2293990 ..........................shivam.sawhney@escortsed.com ........................... www.escortsgroup.com 27 ..............Ferromatik Milacron India Ltd ...................................................+91-79-25890081 ..........................salesfmi@milacron.com .......................................... www.milacronindia.com 25 ..............Forging Machinery Manufacturing Co ........................................+91-161-5011755 ...........................info@nkhammers.com ............................................ www.nkhhammers.com 59...............G W Precision Tools India Pvt Ltd ...............................................+91-80-40431252 ..........................info@gwindia.in ...................................................... www.gwindia.in 51...............Greaves Cotton Limited ..............................................................+91-22-24397575 ...........................rahul.rao@greavescotton.com ................................ www.greavescotton.com 20 ..............GS Auto International Ltd ...........................................................+91-161-2511001 ............................................................................................................ www.gsgroupindia.com 63 ..............Guhring India Private Limited ....................................................+91-80-40322500..........................info@guhring.in ..................................................... www.guhring.in 47...............Haas Automation India Pvt Ltd ..................................................+91-22-27742181 ...........................indiasales@haascnc.com ........................................ www.haascnc.com 33...............Happy Forging Ltd ......................................................................+91-161-2510421 ...........................mail@happyforgingsltd.com ................................... www.happyforgingsltd.com 18...............IGUS India Pvt Ltd.......................................................................+91-80-39127800 ..........................info@igus.in ............................................................ www.igus.in 42...............Indian Machine Tools Manufacturers’ Association .....................+91-80-66246514 ..........................anuj@imtma.in ....................................................... www.imtma.in 48 ..............Indian Machine Tools Manufacturers’ Association .....................+91-80-66246600..........................imtma@imtma.in .................................................... www.imtma.in 28 ..............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 49...............Larsen & Toubro Limited ............................................................+91-9967800456 ...........................SM.Haridas@larsentoubro.com ............................... www.larsentoubro.com 3 ................M And M Auto Indus Ltd .............................................................+91-124-4763200...........................corporate@mandmsprings.com.............................. www.mandmsprings.com 54 ..............Maha India Automotive Testing Equip .......................................+91-11-40601464 ..........................raj.rengarajan@maha-india.in................................ www.maha-india.in 11 ...............Mahindra & Mahindra Ltd ..........................................................+1800-22-6006 ............................................................................................................... www.mahindragenio.com 7 ................Mahindra Navistar Automotive Pvt Ltd ......................................+1800-200-3600 ............................now24x7@mahindranavistar.com ........................... www.mahindranavistar.com 52 ..............Mahr Metrology India (P) Ltd. .....................................................+91-44-42170531 ..........................r.ganesan@mahr.com ............................................. www.mahr.com 1 ................Micromatic Machine Tools..........................................................+91-80-41492285 ..........................mmtblr@acemicromatic.com ................................. www.acemicromatic.com 40 ..............MMI India Pvt Ltd .......................................................................+91-22-42554719 ..........................bhupinder.singh@mmi-india.in .............................. www.productronica-india.com 26...............Napino Auto & Electronics Ltd. ..................................................+91-124-2290050 ..........................info@napino.com .................................................... www.napino.com 41...............Padmini VNA Mechatronics Pvt. Ltd...........................................+91-124-3207398 ...........................sales@padminiengg.com ........................................ www.padminivna.com 18...............Perfect Oil Seals & I.P.R. .............................................................+91-20-30687701 ..........................sales@posil.co.in ..................................................... www.posil.co.in 4 ................Safexpress Private Limited .........................................................+1800-113-113 ...............................suyash.srivastava@safexpress.com ......................... www.safexpress.com 43...............Schenker India Pvt. Ltd. .............................................................+91-124-4645000 ..........................nitin.aswal@dbschenker.com ................................. www.dbschenker.com/in 6 ................Scholler Arca Time Materials Handling Solutions Ltd. ................+91-22-42119500...........................sales@satmhs.com .................................................. www.satmhs.com 31...............Schuler India Pvt Ltd ..................................................................+91-22-66800300 ..........................info@schularindia.com ........................................... www.schulergroup.com 39...............Shriram Pistons & Rings Ltd .......................................................+91-11-23315941 ...........................aarti.anandan@shrirampistons.com....................... 32...............Sigma Freudenberg Nok Pvt Ltd .................................................+91-11-42411600 ...........................sigma@sigmacorporation.com ............................... www.sigmacorpoaration.com 30 ..............Sigma Vibracoustic India Pvt Ltd................................................+91-11-42411600 ...........................sigma@sigmacorporation.com ............................... www.sigmacorpoaration.com 12...............Sreelakshmi Traders ...................................................................+91-44-24343343 ..........................sreelakshmitraders@gmail.com.............................. www.sreelakshmitraders.com 55...............Subros Ltd...................................................................................+91-11-23414946 ...........................pmehra@subros.com .............................................. www.subroslimited.com 5 ................Tata Motors Ltd...........................................................................+1800-209-7979 ............................................................................................................. www.tataaria.com 53 ..............Tata Motors Ltd...........................................................................+91-22-66561866 ..........................charu.gulati@tatamotors.com ................................ www.tatamotors.com 50 ..............Techno Spring Industries ............................................................+91-129-4024488 ..........................vikastantia@technospringindia.com....................... www.technospringindia.com 15...............The Indian Electric Co.................................................................+91-20-24475845 ..........................iecmktg@indianelectric.com .................................. www.indianelectric.com 21...............The Supreme Industries Ltd. ......................................................+91-9892569003 ...........................protec@supreme.co.in ............................................ www.supreme.co.in 8 ................Time Technoplast Limited ..........................................................+91-22-42119500...........................3sautocomponent@gmail.com ............................... www.timetechnoplast.com 22 ..............Tkw Fasteners Pvt Ltd.................................................................+91 -124-4081711 ..........................tarun@tkwfasteners.com ........................................ www.tkwfasteners.com 13...............Volvo India Pvt Ltd ............................................................................................................................................................................................................. www.volvobuses.co.in 34 ..............Wagner .......................................................................................+91-124-4121626 ...........................imtiaz.ahmed@wagner-group.com......................... www.wagner-group.com 17...............Yamazaki Mazak India Pvt Ltd ...................................................+91-2137-668800 ..........................sudhir_patankar@mazakindia.com ........................ www.mazak.com Q Our consistent advertisers

(UTTARAKHAND)

Auto Monitor

PRODUCT INDEX

1 - 15 September 2011

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

5c indexers .................................................................47

Commercial vehicle ....................................................5,7,11,13,19,53

Milling cutters ............................................................63

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

Compact chiller ..........................................................27

Modular tooling system .............................................63

Acc. Padel sensor assy. ...............................................41

Compaction & concreting equipment. .......................51

Mould temperature controller ...................................27

ADEA - automotive dealership excellence awards......46

Compression springs ..................................................3, 50

Mounts .......................................................................30, 32

Air chiller ....................................................................27

Compressors ...............................................................55

Movement technology ...............................................34

Aluminum processing ................................................31

Condensers .................................................................55

Nuts ............................................................................20

Auto motion mfrs .......................................................47

Connectors .................................................................18

‘O’ rings ......................................................................18

Auto parts ..................................................................20, 33

Contour evaluation in single trace .............................52

Oil seals ......................................................................18

Automatic spray guns .................................................34

Cooling module ..........................................................55

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

Automation ................................................................16

Countersinks ..............................................................63

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

Automobile parts .......................................................12

Crankshafts ................................................................33

Pistons & pistons rings ...............................................36, 39

Automotive labeling ...................................................38

Cutting machines .......................................................16

Polymer conveyer belt ...............................................27

Automotive products .................................................9

Cylindrical grinders ....................................................1

Powder feeding ..........................................................34

Automotive wire harness ...........................................26

Dehumidiﬁed air dryer ..............................................27

Powder matallergy products......................................12

Axles ...........................................................................20, 33

Diamond tools............................................................63

Power chucking cylinders ..........................................1

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

Diesel engines (10-1000hp) ........................................51

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

Diesel/kerosene engines ............................................51

Bearings .....................................................................18, 57

Drilling tools...............................................................63

Billet shearing machines ............................................25

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

Blanking lines.............................................................31

EGR valve ....................................................................41

Bolts ...........................................................................20

Electric motor lamination systems.............................31

Brake shoe .................................................................35

Electronic control unit ...............................................41

Building automation ..................................................16

Exhibition -Engineering Expo .....................................44

Bus a/c ........................................................................55

Extension springs .......................................................3, 50

Buses ..........................................................................53

Factory automation....................................................16

Bushes ........................................................................30, 32

Fasteners ....................................................................22

C frame power press ..................................................25

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

Cable carriers .............................................................18

Forging press ..............................................................25

Cable connectors........................................................18

Forgings......................................................................33

Capacitors discharge ignitors .....................................26

Friction drop hammers ..............................................25

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

Friction screw press ...................................................25

Chains.........................................................................18

Front axles..................................................................20

Clutch plates...............................................................35

Granulator ..................................................................27

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

Grinder .......................................................................27

CNC cutting machines ................................................16

Gun drills ....................................................................63

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

H frame power press ..................................................25

CNC laser cutting machines........................................16

Hammers....................................................................25

CNC lathe ....................................................................47

Hmc horizontal spindle..............................................47

CNC lathes ..................................................................1

Hollow bars ................................................................28

CNC machines ............................................................23,29

Hopper dryer..............................................................27

Taps ............................................................................63

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

Hopper loader ............................................................27

Teﬂon oil seals............................................................18

CNC oxy fuel cutting machine ....................................16

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

Testing & safety technology .......................................54

CNC plasma cutting machines ....................................16

Horizontal machining center .....................................23

Tool presetters ...........................................................52

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

Hvacs & evaporators ..................................................55

Tool presetting ...........................................................52

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

Hydro forming ............................................................31

Torsion springs ...........................................................3, 50

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

Imaging & vision systems ...........................................16

Total data management .............................................52

CNC/vmc machines.....................................................17

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

Transmission ..............................................................30, 32

Coating machines .......................................................16

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

Transmission gears .....................................................12

Coating plants ............................................................16

Laser systems .............................................................31

Tungsten carbide metal cutting tools ........................49

Coating systems ..........................................................16

Lightweight diesel engines for automotive applications like 2 & 3

Turrets ........................................................................1

Combination switches ................................................26

wheelers .....................................................................51

Vaccum pump ............................................................41

Lightweight petrol......................................................51

Valve stem seals .........................................................18

Logistic services..........................................................43

Ventilators ..................................................................12

Lubricants ..................................................................35

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

Magnum spray guns ...................................................34

Vertical machining centers.........................................1 , 64

Manual powder coading system.................................34

Vision sensors and surface inspection systems ..........45

Marpreset ...................................................................52

Vision software ..........................................................45

Marsurf ld 120 roughness ..........................................52

Vision systems ............................................................45

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

Vmc vertical machines ...............................................47

Measurement .............................................................52

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

Metal cutting tools .....................................................59

Wire forms ..................................................................3, 50

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

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

Power sprayer ............................................................51 Power tiller .................................................................51 Protective packaging and cushioning solutions .........21 Pumpsets and power reapers ....................................51 Rainflaps ....................................................................8 Reamers .....................................................................63 Rear axles ...................................................................20 Resistor assembly. ......................................................26 Robot system..............................................................27 Rotary tables ..............................................................47 Self adhesive tapes .....................................................12 Sheet metal frming ....................................................31 Siemens motors efi 1 ..................................................15 Silicon carbide based particulate filters.....................37 Solid carbide drills .....................................................59 Solid carbide drills with ic ..........................................59 Solid carbide mills......................................................59 Solid carbide reamers ................................................59 Solid carbide reamers with ic.....................................59 Solid carbide special drills .........................................59 Solid carbide special mills..........................................59 Solid carbide special reamers ....................................59 Soses & tubes .............................................................55 Spray suppression system ..........................................8 Stainless steel gear parts ............................................12

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

(UTTARAKHAND)

1 - 15 September 2011

Auto Monitor

GLOBAL WATCH

Toyota to showcase seven-seater Prius T

oyota is planning to showcase the Prius+, a seven-seat version of its Prius hybrid car, at the upcoming Frankfurt auto show, ahead of European sales beginning in the fi rst half of 2012. Designed to extend the appeal of the Prius range to families, the Prius+ offers a three-row seating format. The Prius+ has a 1.8-liter gasoline engine and an electric motor and is the fi rst non-plug-in Toyota full hybrid to use a new compact lithium ion battery. Previous Toyota hybrids have used nickelmetal hydride batteries. Toyota’s new Camr y will start a blitz of US model releases to regain sales lost to rivals such as Hyundai after three years that included recession, recalls and an earthquake. The company unveiled the 2012 Camry at Paramount Studios in Hollywood on a New York Citythemed backlot with 200 actors, dancers and musicians. It’s the first of 20 new and refreshed Toyota, Lexus and Scion models arriving by early 2013, said Group Vice President, US sales, Toyota, Bob Carter. The new version of the top-selling US car goes on sale in October. Bringing out the Camry and other new models “is tremendously important,” he said. The new models, starting with four more this year, come none too soon for the automaker, set to lose its ranking as the world’s largest automaker this year. Japan’s March earthquake slowed Toyota plants in the months that followed, hindering efforts to bounce back from last year’s record recalls. US deliveries for Toyota’s three brands fell 7.1 percent this year through July to 943,590; it’s lowest for the period since 1999. By comparison, total light-vehicle sales grew 11 percent, with Hyundai up 23 percent, GM up 16 percent and Ford rising 12 percent. Along with Camry, Toyota this year will add the hybrid Prius v wagon, revamped Yaris subcompact, Scion iQ minicar and a modified Tacoma pickup, Carter said. Releases in 2012 include a plug-in version of Prius and compact Prius c hybrid, a new Lexus GS sport sedan, a battery-powered RAV4 sport-utility vehicle and a rear-wheel-drive Scion FR-S sports car, he said. “It is defi nitely good to have a heavy schedule of new models on the way, to kind of wow the public,” said Kim. The Camry and the expanded line of Prius models are designed to help overcome lingering consumer concerns about the quality and safety of Toyota products after the company recalled millions of cars and light trucks for flaws linked to accelerator-pedal interference. “Those two are the keys to building back the brand,” Carter said, who has said Prius will be Toyota’s top-selling line by the end of the decade. The new Camry has the best safety, handling and fuel economy among US mid-size sedans, with the hybrid version averaging 41 miles per gallon of gasoline, up 24 percent, Carter said. Toyota is determined to keep the model the top-selling passenger car, a position held for 13 of the past 14 years. “To become the biggest-selling car in America is no joke,” Yoshimi Inaba, Toyota’s North

American CEO, said. “You have to be good everywhere. We think we’ve got it.” Camry is symbolic of Toyota’s success, CEO Akio Toyoda said in a speech marking the start of production of the model in Georgetown, Ky. “This is an opportunity to show the world what Toyota is all about,” said Toyoda, grandson of the automaker’s founder. “I can introduce the new Camry with 100 percent conﬁdence,” he said. Through July, Camry sales slipped 7.8 percent to 174,485 from a year earlier. Nissan’s Altima gained 17 percent to 153,182, second-most among mid-size cars. Hyundai’s Sonata had a 27 percent sales gain, Ford’s Fusion rose 17 percent, GM’s Malibu increased 11 percent and Kia’s Optima more than doubled.

Toyota Prius

Even if the new car doesn’t lure drivers from Hyundai, Ford, Kia, Honda or Volkswagen, Camry has the largest owner base of any

mid-size sedan in the US, Carter said. Toyota estimates more than 6.8 million Camry models are on the road in the US, with 90 per-

cent sold since 1995. “That’s a foundation no other manufacturer has,” Carter said. Toyota’s best year for Camry was 473,108 in 2007, after the current version came out, and it’s been the best-selling car in the US for the past nine years. Changes to Camry’s exterior styling are more “evolutionary” than “revolutionary,” Carter said. It retains the 2011 Camry’s basic profile, substituting the current car’s rounder edges with squared-off corners. While exterior dimensions are similar, it has a roomier rear seat and bigger trunk, Toyota said. Improved ride and handling also a key focus, Inaba said. “Until the last moment of the launch, we’ve tried to do better than competitors everywhere,” he said.

Auto Monitor

1 - 15 September 2011

SIAM DATA

FLASH REPORT (MEDIA) REPORT II

Source: SIAM

Category Segment/Subsegment Manufacturer.

Production For the month of July 2010

2011

Cumulative April-July 10-11

11-12

Domestic Sales For the month of July 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) 7,352 3,534 22,263 25,338 9,000 Total 7,352 3,534 22,263 25,338 9,000 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) 2,222 2,680 11,466 13,837 2,244 Hyundai Motors India Ltd(Santro) 13,030 12,052 37,869 45,218 7,122 Maruti Suzuki India Ltd (M800, Alto,Wagon R,A-Star) 58,869 58,778 205,004 213,619 45,068 Total 74,121 73,510 254,339 272,674 54,434 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) 1,682 1,254 4,899 5,437 1,401 Ford india Pvt Ltd (Figo ) 8,721 7,855 28,887 31,898 6,837 General Motors India Pvt Ltd (Beat, U-VA) 2,284 4,687 14,598 16,383 1,923 Honda Siel Cars India ltd (Jazz) 0 0 496 30 514 Hyundai Motors India Ltd(Getz, i10, i20) 33,421 35,313 136,343 139,068 17,871 Maruti Suzuki India Ltd (Swift, Ritz, Estilo) 22,493 8,313 90,243 70,725 20,691 Nissan Motor India Pvt Ltd (Micra) 1,024 10,334 1,024 39,346 928 SkodaAuto india p.ltd ( Fabia ) 526 1,985 2,132 7,611 460 Tata Motors Ltd (Indica,Indica Vista, Indigo CS) 15,179 14,501 59,752 48,362 12,487 Toyota Kirloskar Motor Pvt Ltd (Liva) 0 2,510 0 3,372 0 Volkswagen India Pvt Ltd (Polo) 2,547 4,628 6,420 19,234 2,178 Total 87,877 91,380 344,794 381,466 65,290 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) 3,567 3,301 10,951 13,177 1,570 Mahindra & Mahindra Ltd (Verito) 937 1,769 3,046 5,588 752 Maruti Suzuki India Ltd (Dzire) 8,604 3,072 33,787 27,872 8,492 Toyota Kirloskar Motor Pvt Ltd (Etios-Sedan) 0 4,128 0 17,232 0 Total 13,108 12,270 47,784 63,869 10,814 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 22 Total 0 0 0 0 22 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) 1,755 1,908 6,120 5,757 1,636 General Motors India Pvt Ltd (Aveo) 343 264 1,638 625 359 Hindustan Motors Ltd (Lancer) 101 57 312 88 98 Honda Siel Cars India Ltd (City) 4,250 2,498 13,510 8,425 3,565 Hyundai Motors India Ltd (Verna) 2,200 4,664 7,475 14,924 2,217 Maruti Suzuki India Ltd (SX4) 2,010 2,424 6,347 7,872 1,860 Tata Motors Ltd (Indigo, Manza) 4,831 1,950 12,952 5,881 3,126 Volkswagen India Pvt Ltd (Vento) 0 3,300 0 13,430 0 Specialty: Hindustan Motors Ltd (Ambassador) 752 70 2,605 898 747 Total 16,242 17,135 50,959 57,900 13,608 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) 1,270 185 4,006 2,710 900 General Motors India Pvt Ltd (Optra, Cruze) 1,229 1,220 4,098 5,032 772 Hindustan Motors Ltd (Cedia sports) 0 2 35 34 0 Honda Siel Cars India Ltd (Civic) 780 240 1,560 1,200 371 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) 0 395 0 720 0 Skoda Auto India Pvt Ltd (Laura) 770 722 2,631 2,726 386 Toyota Kirloskar Motor Pvt Ltd (Corolla ) 690 987 2,872 2,873 843 Volkswagen India Pvt Ltd (Jetta) 527 0 1,728 52 292 Specialty: BMW india pvt Ltd ( 3 Series) 0 136 657 605 178 Hindustan Motors Ltd (EVO X) 0 1 0 2 0 Mercedes-Benz India Pvt Ltd (C-Class) 216 298 794 1,226 258 Volkswagen - Audi (A4) 0 0 0 0 132 Total 5,482 4,186 18,381 17,180 4,132 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 ) 210 152 540 660 192 Hyundai Motors India Ltd ( Sonata ) 30 23 101 97 31 Nissan Motor India Pvt Ltd (Teana) 0 0 0 0 27 Skoda Auto India Pvt Ltd (Superb) 464 360 1,415 1,392 376 Toyota Kirloskar Motor Pvt Ltd (Camry ) 0 0 0 0 34 Volkswagen India Pvt Ltd (Passat) 132 131 451 573 102 Specialty: BMW india pvt Ltd (Gran Turismo, 5 Series) 270 188 276 1,125 277 Mercedes-Benz India Pvt Ltd (E-Class) 178 307 583 1,067 210 Toyota Kirloskar Motor Pvt Ltd (Prius ) 0 0 0 0 6 Volkswagen - Audi (A6, A7) 0 0 0 0 79 Total 1,284 1,161 3,366 4,914 1,334 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 50 Mercedes-Benz India Pvt Ltd ( S-Class) 76 46 216 167 45 Volkswagen - Audi (A8) 0 0 0 0 0 Volkswagen India Pvt Ltd (Phaeton) 0 0 0 0 3 Total 76 46 216 167 98 Coupe: Roadster - 2 Doors; 2/4 seater, retractable/firm roof Regular: BMW india pvt Ltd (6 Series, Z4) 0 0 0 0 12 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 0 Volkswagen - Audi (R8, RS5) 0 0 0 0 0 Total 0 0 0 0 35 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 205,542 203,222 742,102 823,508 158,767 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) 24 3 145 124 25 Mahindra & Mahindra Ltd (Bolero, ST) 5,689 7,336 23,448 29,042 5,257 Maruti Suzuki India Ltd (Gypsy) 4 587 1,907 2,375 368 Tata Motors Ltd (Sumo,) 1,920 1,225 5,951 5,381 1,624 Total 7,637 9,151 31,451 36,922 7,274 UV2: Length<4400 - 4700 mm, Price Upto Rs. 15 Lakh General Motors India Pvt Ltd (Tavera) 1,540 1,751 6,158 7,198 1,546 International Cars & Motors Ltd (Rhino) 26 40 294 142 67 Mahindra & Mahindra Ltd (Scorpio, Bolero, ST, Xylo) 7,261 9,605 28,684 34,004 6,816 Tata Motors Ltd (Sumo Grande, Safari) 1,998 1,553 7,029 5,948 1,625 Toyota Kirloskar Motor Pvt Ltd (Innova) 4,706 4,748 17,871 15,967 4,816 Total 15,531 17,697 60,036 63,259 14,870 UV3: Length>4700 mm, Price Upto Rs. 15 Lakh Force Motors Ltd (Trax) 262 210 958 1,036 256 Tata Motors Ltd (Aria, Xenon) 55 395 148 1,077 3 Total 317 605 1,106 2,113 259 UV4: Price Between Rs. 15 to 25Lakh BMW india Pvt Ltd (X1) 0 525 0 1,629 0 Ford India Pvt Ltd (Endeavour) 315 297 1,155 912 266 General Motors India Pvt Ltd (Captiva) 0 0 0 0 225 Hindustan Motors Ltd (Pajero, Outlander) 232 207 692 704 231 Honda Siel Cars India Ltd (CRV) 0 0 0 0 43 Hyundai Motors India Ltd (Santa Fe) 0 150 0 170 0 Maruti Suzuki India Ltd (Vitara) 0 0 0 0 18 Nissan Motor India Pvt Ltd (X-Trail) 0 0 0 0 50 Skoda Auto India Pvt Ltd (Yeti) 0 175 0 926 0 Toyota Kirloskar Motor Pvt Ltd (Fortuner) 1,050 1,016 4,029 3,461 1,101 Total 1,597 2,370 5,876 7,802 1,934 UV5: Price > Rs. 25Lakh BMW india Pvt Ltd (X3, X5, X6) 0 29 0 29 18 Hindustan Motors Ltd (Mentero) 0 16 5 34 1 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 34 Volkswagen - Audi (Q5,Q7) 0 0 0 0 74 Volkswagen India Pvt Ltd (Touareg) 0 0 0 0 0 Total 0 45 5 63 164 Total Utillity Vehicles (Uvs) 25,082 29,868 98,474 110,159 24,501 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) 14,364 14,956 48,512 55,857 13,617 Tata Motors Ltd (Venture) 0 783 14 2,540 0 Total 14,364 15,739 48,526 58,397 13,617 V2: Soft tops mainly used as Maxi Cabs, Price Upto Rs. 10 Lakh Force Motors Ltd (Trip) 30 0 30 100 8 Mahindra & Mahindra Ltd (Gio, Maxximo Mini Van) 0 2,426 0 6,813 0 Tata Motors Ltd (Magic, lris) 4,833 4,403 16,295 16,087 4,811 Total 4,863 6,829 16,325 23,000 4,819 Total Vans 19,227 22,568 64,851 81,397 18,436 Total Passenger Vehicles (PVs) 249,851 255,658 905,427 1,015,064 201,704 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 206 81 698 873 136 Mahindra & Mahindra Ltd 0 0 0 0 0 Mahindra Navistar Automotives Ltd 30 22 186 75 40 SML Isuzu Ltd 312 191 1,154 996 290 Tata Motors Ltd 514 663 2,091 2,385 523 VE CVs - Eicher 178 405 948 1,466 289 Total A1 1,240 1,362 5,077 5,795 1,278 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 2,002 1,706 6,481 6,804 1,287 JCBL Ltd 0 0 0 1 0 SML Isuzu Ltd 6 9 26 33 2 Tata Motors Ltd 1,458 950 5,616 3,932 1,182 VE CVs - Eicher 14 81 56 198 9 Volvo Buses India Pvt Ltd 25 12 84 95 27 Total A2 3,505 2,758 12,263 11,063 2,507 A3: No. of seats including exceeding 13 and max. mass exceeding 16.2 tonnes (M3(D)) Passenger Carrier (D) Volvo Buses India Pvt Ltd 13 50 64 168 10 Total A3 13 50 64 168 10 Total M&HCVs(passenger carriers) 4,758 4,170 17,404 17,026 3,795 M&HCVs B: Goods Carriers (c) Max Mass exceeding 7.5 tonnes but not exceeding 10 tons Ashok Leyland Ltd 18 57 116 204 37 SML Isuzu Ltd 168 333 935 1,071 147 Tata Motors Ltd 538 656 1,996 2,202 491 VE CVs - Eicher 746 882 2,992 3,387 837 Total 1,470 1,928 6,039 6,864 1,512 (d) Max. Mass Exceeding 10 tons but not exceeding 12 tons Ashok Leyland Ltd 243 332 910 1,317 266 SML Isuzu Ltd 166 125 382 559 86

Exports Cumulative April-July

For the month of July

Cumulative April-July

2011

10-11

11-12

2010

2011

10-11

11-12

3,260 3,260

23,779 23,779

25,239 25,239

0 0

300 300

1 1

1,125 1,125

1,499 5,409 38,028 44,936

11,465 26,619 158,297 196,381

11,721 27,331 160,080 199,132

0 4,825 9,350 14,175

3 5,190 7,564 12,757

9 11,177 45,990 57,176

20 14,316 33,387 47,723

927 5,273 5,299 275 14,455 9,099 1,550 1,403 9,380 2,551 3,507 53,719

4,591 25,332 12,666 1,564 72,433 84,881 928 2,068 48,943 0 5,920 259,326

4,625 22,592 11,870 918 71,967 64,750 5,923 5,981 38,011 3,288 13,427 243,352

187 726 39 2 14,704 1,122 0 0 377 0 0 17,157

133 3,050 18 0 16,479 1,175 11,195 0 348 0 0 32,398

617 1,774 87 5 64,911 4,286 0 0 2,326 0 0 74,006

662 8,240 53 0 60,478 5,606 33,635 0 1,305 0 0 109,979

900 1,630 3,021 4,095 9,646

5,117 2,068 33,364 0 40,549

4,002 5,437 28,116 17,166 54,721

2,071 450 117 0 2,638

2,356 0 1 0 2,357

7,576 1,100 268 0 8,944

8,425 0 42 0 8,467

5 5

167 167

27 27

0 0

1,960 117 57 4,092 4,724 2,303 1,357 2,846

5,246 1,419 311 13,017 7,555 5,946 14,480 0

5,312 628 88 10,264 15,037 7,820 5,093 10,572

73 16 0 10 0 6 71 0

152 8 0 2 0 1 42 0

411 65 0 15 0 14 511 0

346 53 0 6 0 1 177 0

100 17,556

2,585 50,559

916 55,730

0 176

0 205

0 1,016

0 583

175 742 3 233 0 32 212 580 1,030 109

3,810 3,296 73 1,431 2 0 0 2,151 2,861 1,391

2,180 4,049 23 851 0 149 502 2,340 2,854 431

1 0 0 2 0 0 0 0 0 0

72 2 0 0 0 0 0 0 0 0

2 3 0 3 0 0 0 0 0 0

179 10 0 0 0 0 0 0 0 0

126 1 97 207 3,547

621 0 792 362 16,790

724 2 861 674 15,640

0 0 0 0 3

0 0 0 0 74

0 0 0 0 8

0 0 0 0 189

84 13 8 231 31 61

716 103 98 1,307 114 426

385 71 20 1,273 69 638

0 0 0 0 0 0

2 0 0 0 0 0

171 287 2 96 984

482 607 69 272 4,194

954 827 4 235 4,476

0 0 0 0 0

0 0 0 0 2

20 23 17 1 61

163 141 4 7 315

105 124 105 12 346

0 0 0 0 0

6 8 0 17 31

34 44 2 0 80

19 36 2 35 92

0 0 0 0 0

2 2 133,747

0 0 592,140

4 4 598,759

0 0 34,149

0 0 48,091

0 0 141,151

0 0 168,068

26 7,198 639 1,248 9,111

117 22,765 3,339 5,473 31,694

122 28,485 2,130 5,640 36,377

0 34 0 56 90

1 7 7 51 66

0 182 12 149 343

1 65 50 195 311

1,695 38 8,484 937 4,816 15,970

5,915 287 28,170 6,469 17,859 58,700

7,108 135 31,604 5,052 15,906 59,805

0 0 216 13 0 229

12 0 614 0 0 626

1 0 872 65 0 938

28 0 1,512 43 0 1,583

265 335 600

888 1,029 1,917

976 1,043 2,019

0 0 0

0 4 4

484 271 113 213 41 141 3 35 197 1,060 2,558

0 1,019 563 693 197 0 36 157 1 4,019 6,685

1,292 905 589 674 108 395 14 75 635 3,461 8,148

0 0 0 0 0 0 0 0 0 0 0

33 15 61 7 147 0 263 28,502

104 8 107 145 342 3 709 99,705

123 34 290 29 689 4 1,169 107,518

0 0 0 0 0 0 0 319

0 0 0 0 0 0 0 692

0 0 0 0 0 0 0 1,281

0 0 0 0 0 0 0 1,898

13,379 675 14,054

47,138 0 47,138

54,128 1,896 56,024

148 0 148

48 0 48

610 0 610

546 0 546

22 2,513 4,819 7,354 21,408 183,657

8 0 15,783 15,791 62,929 754,774

104 6,586 16,213 22,903 78,927 785,204

0 0 13 13 161 34,629

0 0 10 10 58 48,841

0 0 39 39 649 143,081

0 0 102 102 648 170,614

310 0 0 128 726 411 1,575

600 0 248 1,102 2,509 1,164 5,623

1,037 0 1 1,022 2,188 1,438 5,686

17 0 0 0 11 52 80

41 0 0 0 58 7 106

93 5 0 3 40 106 247

64 0 0 5 164 35 268

1,509 0 8 939 84 12 2,552

5,007 0 25 4,670 60 81 9,843

5,137 1 31 3,802 172 93 9,236

312 0 0 241 10 0 563

406 0 0 276 0 0 682

1,140 0 0 1,140 11 0 2,291

1,356 0 0 1,153 19 0 2,528

48 48 4,175

57 57 15,523

162 162 15,084

0 0 643

0 0 788

0 0 2,538

0 0 2,796

45 195 718 987 1,945

143 807 2,182 3,093 6,225

147 823 2,869 3,275 7,114

10 11 61 26 108

0 0 52 5 57

32 40 226 106 404

34 120 222 32 408

269 34

774 272

965 485

25 20

26 0

56 20

77 2

1 - 15 September 2011

Auto Monitor

SIAM DATA

Category Segment/Subsegment Manufacturer.

Production For the month of July 2010

Domestic Sales For the month of July

Cumulative April-July

2011

Exports Cumulative April-July

For the month of July

Cumulative April-July

2011

10-11

11-12

2010

10-11

11-12

2010

2011

10-11

Tata Motors Ltd 706 856 VE CVs - Eicher 840 1,099 Total 1,955 2,412 Total B 3,425 4,340 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 1,775 1,436 SML Isuzu Ltd 1 1 Tata Motors Ltd 4,319 5,334 VE CVs - Eicher 287 416 Total B2 6,382 7,187 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 2,315 1,441 Asia Motor Works Ltd 441 980 Mahindra Navistar Automotives Ltd 32 22 Tata Motors Ltd 4,718 4,854 VE CVs - Eicher 43 133 VE CVs - Volvo 0 0 Total 7,549 7,430 (b) Max. mass exceeding 25 tonnes Ashok Leyland Ltd 1,012 647 Asia Motor Works Ltd 24 71 Daimler India Commercial Vehicles Pvt Ltd 0 4 Mahindra Navistar Automotives Ltd 1 0 Tata Motors Ltd 4,135 4,797 VE CVs - Eicher 7 136 VE CVs - Volvo 53 63 Total 5,232 5,718 Total B3 12,781 13,148 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 323 160 Tata Motors Ltd 0 0 Total 323 160 (c) Mass exceeding 35.2 tonnes but not exceeding 40 tonnes Asia Motor Works Ltd 40 35 Mahindra Navistar Automotives Ltd 0 30 Total 40 65 (d) Max. mass exceeding 40 tonnes but not exceeding 49 tonnes Ashok Leyland Ltd 297 184 Asia Motor Works Ltd 35 15 Tata Motors Ltd 0 170 VE CVs - Eicher 0 2 Total 332 371 (e) Max. mass exceeding 49 tonnes and Above Ashok Leyland Ltd 112 22 VE CVs - Volvo 17 30 Total 129 52 Total B4 824 648 Total M&HCVs (Goods Carriers) 23,412 25,323 Total M&HCVs 28,170 29,493 LCVs A: Passenger Carriers A1: Max. Mass upto 5 tonnes (a): No. of seats including driver exceeding 13 (M2(A2)) Force Motors Ltd 778 845 Mahindra Navistar Automotives Ltd 295 208 Tata Motors Ltd 382 713 Total 1,455 1,766 A2: Max. Mass exceeding 5 tonnes but not exceeding 7-5 tonnes (M3(A)) (b): No. of seats including driver exceeding 13 (M3(A2)) Ashok Leyland Ltd 102 186 Force Motors Ltd 0 0 Mahindra & Mahindra Ltd 0 0 Mahindra Navistar Automotives Ltd 293 455 SML Isuzu Ltd 217 312 Tata Motors Ltd 1,416 1,921 VE CVs - Eicher 218 310 Total A2 2,246 3,184 B2: Max. Mass upto 5 tonnes (b): No. of seats including driver not exceeding 13 (M2(A1)) Force Motors Ltd 391 579 Hindustan Motors Ltd 0 0 Tata Motors Ltd 157 119 Total B2 548 698 Total LCVs (Passenger Carriers) 4,249 5,648 LCVs B: Goods Carriers (a) Max. Mass not exceeding 2 tons-Mini Truck Segment Force Motors Ltd 11 0 Mahindra & Mahindra Ltd 3,075 4,327 Piaggio Vehicles Pvt.Ltd 1,055 1,352 Tata Motors Ltd 13,184 18,590 Total 17,325 24,269 (b) Max. Mass not exceeding 2 but no exceeding 3.5 tons-Pick Ups Force Motors Ltd 375 343 Hindustan Motors Ltd 53 12 Mahindra & Mahindra Ltd 6,018 7,457 Tata Motors Ltd 1,106 2,039 Total 7,552 9,851 (a) Max Mass exceeding 3.5 tons but not exceeding 6 tonnes Force Motors Ltd 106 133 Mahindra & Mahindra Ltd 0 0 Mahindra Navistar Automotives Ltd 380 367 SML Isuzu Ltd 1 0 Tata Motors Ltd 2,502 2,910 VE CVs - Eicher 38 67 Total 3,027 3,477 (b) Max Mass exceeding 6 tons but not exceeding 7.5 tonnes Ashok Leyland Ltd 0 0 Mahindra & Mahindra Ltd 1 0 Mahindra Navistar Automotives Ltd 8 24 SML Isuzu Ltd 71 141 Tata Motors Ltd 325 586 VE CVs - Eicher 657 630 Total 1,062 1,381 Total LCVs (Goods Carriers) 28,966 38,978 Total LCVs 33,215 44,626 Total Commercial Vehicles 61,385 74,119 IV Two Wheelers A: Scooter/Scooterettee : Wheel size less than or equal to 12” A1: Engine Capacity less than 75cc Mahindra Two Wheelers Ltd 201 48 TVS Motor Company Ltd 1,646 1,921 Total 1,847 1,969 A2: Engine Capacity 75cc and above but less than 125cc Bajaj Auto Ltd 0 0 Hero Honda Motors Ltd 25,688 36,498 Honda Motorcycle & Scooter India (Pvt) Ltd 77,424 91,881 Mahindra Two Wheelers Ltd 14,003 9,664 Suzuki Motorcycle India Pvt Ltd 16,842 22,738 TVS Motor Company Ltd 38,769 39,893 Total 172,726 200,674 Total Scooter/Scooterettee 174,573 202,643 B: Motor cycles/Step-Throughs : Big Wheel size more than 12” B2: Engine Capacity 75cc and above but less than 125cc Bajaj Auto Ltd 159,147 176,258 Hero Honda Motors Ltd 380,851 439,985 Honda Motorcycle & Scooter India (Pvt) Ltd 15,324 9,804 India Yamaha Motor Pvt Ltd 7,602 6,541 TVS Motor Company Ltd 54,788 55,592 Total 617,712 688,180 B3: Engine Capacity 125cc and above but less than 250cc Bajaj Auto Ltd 134,738 159,110 Hero Honda Motors Ltd 26,278 32,751 Honda Motorcycle & Scooter India (Pvt) Ltd 46,080 48,189 India Yamaha Motor Pvt Ltd 19,585 32,871 Suzuki Motorcycle India Pvt Ltd 1,833 5,895 TVS Motor Company Ltd 21,899 22,989 Total 250,413 301,805 B4: Engine capacity 250cc and above Bajaj Auto Ltd 0 0 Honda Motorcycle & Scooter India (Pvt) Ltd 0 2,382 India Yamaha Motor Pvt Ltd 0 0 Royal Enfield (Unit of Eicher Ltd) 5,017 6,502 Total 5,017 8,884 Total Motor Cycles/Step-Throughs 873,142 998,869 C: Mopeds: Engine capacity less than 75cc & with fixed transmission, big wheelsize>12” Engine Capacity<75cc Mopeds TVS Motor Company Ltd 60,430 70,154 Total 60,430 70,154 Total Mopeds 60,430 70,154 Total Two Wheelers 1,108,145 1,271,666 III Three Wheelers A: Passenger Carriers A1:No. of seats including driver not exceeding 4 & Max.Mass not exceeding 1 tonnes Atul Auto Limited 791 1,268 Bajaj Auto Ltd 35,057 43,054 Force Motors Ltd 0 0 Mahindra & Mahindra Ltd 4,088 4,078 Piaggio Vehicles Pvt.Ltd 13,158 12,836 Scooters india Ltd 379 523 TVS Motor Company Ltd 3,216 4,340 Total 56,689 66,099 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 389 0 Scooters india Ltd 164 211 Total 553 295 Total Passenger Carrier 57,242 66,394 B: Goods Carriers B1: Max.mass not exceeding 1 tonnes Atul Auto Limited 787 1,030 Bajaj Auto Ltd 233 772 Mahindra & Mahindra Ltd 1,050 1,316 Piaggio Vehicles Pvt.Ltd 4,470 5,207 Scooters india Ltd 393 587 Total 6,933 8,912 B2: Others Force Motors Ltd 0 0 Mahindra & Mahindra Ltd 433 300 Piaggio Vehicles Pvt.Ltd 0 15 Scooters india Ltd 134 196 Total 567 511 Total Goods Carrier 7,500 9,423 Total Three Wheelers 64,742 75,817 Grand Total of all Categories 1,484,123 1,677,260

4,002 2,973 8,267 14,306

3,956 4,067 9,899 16,763

1,136 772 2,260 3,772

1,905 975 3,183 5,128

4,961 3,109 9,116 15,341

6,236 3,833 11,519 18,633

120 19 184 292

100 25 151 208

496 79 651 1,055

11-12 441 46 566 974

6,597 1 15,007 948 22,553

7,146 5 18,410 1,782 27,343

1,183 0 3,542 240 4,965

1,717 3 2,709 407 4,836

4,860 0 11,780 775 17,415

5,457 7 10,236 1,256 16,956

276 0 391 18 685

501 0 529 19 1,049

1,007 0 1,503 173 2,683

1,594 0 2,092 266 3,952

8,835 1,500 231 18,692 207 0 29,465

5,068 3,230 243 18,821 417 0 27,779

1,703 488 5 4,467 35 9 6,707

1,462 804 99 3,663 88 0 6,116

8,058 1,517 19 18,013 244 11 27,862

4,932 2,836 284 16,115 356 0 24,523

0 0 0 202 1 0 203

59 0 0 187 0 0 246

0 0 0 751 4 0 755

331 0 0 656 0 0 987

3,550 42 110 3 13,744 121 314 17,884 47,349

4,200 151 43 194 20,016 419 193 25,216 52,995

668 9 7 0 2,217 16 24 2,941 9,648

990 30 0 42 3,392 96 29 4,579 10,695

3,096 26 60 0 7,538 118 237 11,075 38,937

3,738 117 17 281 13,354 356 96 17,959 42,482

0 0 0 0 168 0 0 168 371

0 0 0 0 28 0 0 28 274

0 0 0 0 184 0 0 184 939

0 0 0 0 84 0 0 84 1,071

0 0

71 71

0 0

257 257

0 0

1,107 0 1,107

833 0 833

337 696 1,033

166 711 877

1,128 2,476 3,604

792 2,901 3,693

9 0 9

10 0 10

9 0 9

38 0 38

169 0 169

233 102 335

27 0 27

36 9 45

166 0 166

195 79 274

0 0 0

910 118 0 13 1,041

560 76 450 74 1,160

226 28 1,001 2 1,257

169 11 1,075 10 1,265

893 91 3,282 32 4,298

619 62 3,678 40 4,399

0 0 0 0 0

10 0 0 0 10

0 0 1 0 1

840 53 893 3,210 87,418 104,822

582 85 667 2,995 100,096 117,122

124 16 140 2,457 20,842 24,637

86 23 109 2,296 22,955 27,130

650 51 701 8,769 80,462 95,985

531 78 609 8,975 87,046 102,130

0 0 0 80 1,428 2,071

0 0 0 10 1,541 2,329

0 0 0 276 4,953 7,491

0 0 0 39 6,036 8,832

2,773 1,156 1,424 5,353

3,317 798 2,057 6,172

827 310 363 1,500

938 259 676 1,873

2,645 1,162 2,099 5,906

3,165 824 1,962 5,951

0 0 5 5

11 0 27 38

24 0 135 159

37 0 91 128

427 124 0 964 1,127 5,518 1,156 9,316

634 22 0 1,193 1,225 6,343 1,424 10,841

55 29 0 276 287 1,184 240 2,071

51 10 0 357 207 1,349 400 2,374

273 96 0 948 1,112 5,584 1,057 9,070

157 38 0 1,159 1,054 4,864 1,412 8,684

5 0 0 0 5 120 51 181

17 0 0 0 11 384 4 416

61 0 2 0 15 522 177 777

105 0 0 0 15 1,156 47 1,323

1,507 0 485 1,992 16,661

2,067 2 283 2,352 19,365

417 0 56 473 4,044

548 0 211 759 5,006

1,483 0 584 2,067 17,043

1,952 0 732 2,684 17,319

0 0 33 33 219

0 0 3 3 457

0 0 40 40 976

5 0 3 8 1,459

719 11,255 3,737 44,005 59,716

692 17,836 4,330 66,691 89,549

101 2,406 708 10,697 13,912

22 4,227 1,158 13,806 19,213

488 10,314 3,179 38,566 52,547

224 16,381 4,087 52,924 73,616

2 0 0 1,900 1,902

0 296 0 2,105 2,401

2 185 6 6,481 6,674

0 875 6 7,942 8,823

1,381 183 23,088 4,437 29,089

1,434 98 26,006 7,341 34,879

389 51 4,647 828 5,915

630 16 6,732 1,719 9,097

1,350 181 19,733 3,826 25,090

1,693 75 21,561 6,007 29,336

2 0 964 182 1,148

0 0 1,052 300 1,352

2 0 2,428 671 3,101

0 20 3,984 929 4,933

440 0 1,544 2 8,509 465 10,960

464 0 1,475 11 10,547 614 13,111

100 0 366 1 2,205 36 2,708

133 0 358 4 2,280 72 2,847

447 0 1,545 2 7,818 359 10,171

462 0 1,417 11 8,709 603 11,202

0 2 0 0 280 0 282

1 0 0 0 726 29 756

4 63 0 0 1,088 10 1,165

1 87 0 0 2,236 49 2,373

24 2 45 311 1,769 1,489 3,640 103,405 120,066 224,888

0 0 93 441 2,480 1,952 4,966 142,505 161,870 278,992

0 0 10 36 295 377 718 23,253 27,297 51,934

0 0 20 104 419 405 948 32,105 37,111 64,241

0 0 63 219 1,248 979 2,509 90,317 107,360 203,345

0 0 51 299 1,697 1,369 3,416 117,570 134,889 237,019

0 0 0 20 28 70 118 3,450 3,669 5,740

0 0 0 19 57 128 204 4,713 5,170 7,499

0 0 0 100 173 256 529 11,469 12,445 19,936

0 0 0 74 357 455 886 17,015 18,474 27,306

4,504 6,355 10,859

1,119 6,001 7,120

1,161 1,673 2,834

461 1,942 2,403

3,876 8,416 12,292

1,698 6,062 7,760

0 0 0

0 100,936 308,494 45,887 68,715 126,112 650,144 661,003

0 142,456 323,795 45,164 90,465 154,886 756,766 763,886

0 24,776 75,180 10,872 16,753 36,780 164,361 167,195

0 33,766 89,869 12,551 22,724 44,382 203,292 205,695

27 96,809 302,198 35,229 68,731 122,232 625,226 637,518

0 131,558 315,623 43,571 90,509 149,541 730,802 738,562

0 1,288 1,500 132 1 1,904 4,825 4,825

0 3,370 1,721 88 0 3,009 8,188 8,188

0 4,928 4,566 498 89 5,195 15,276 15,276

0 11,362 6,047 385 90 11,253 29,137 29,137

620,377 1,471,089 68,903 25,127 211,610 2,397,106

694,821 1,776,698 66,965 23,132 175,922 2,737,538

97,877 366,914 13,477 7,606 33,054 518,928

90,717 411,166 6,619 5,123 36,100 549,725

409,031 1,428,016 64,784 26,098 153,879 2,081,808

396,791 1,722,257 53,018 19,080 155,388 2,346,534

52,406 10,545 1,720 736 8,330 73,737

75,066 8,688 3,748 1,293 11,311 100,106

218,944 33,979 6,530 4,050 37,175 300,678

311,374 36,787 13,556 3,351 45,449 410,517

476,269 100,093 180,934 73,641 10,024 75,361 916,322

564,404 117,221 189,951 132,682 22,988 113,071 1,140,317

94,261 22,881 42,057 15,289 1,583 10,834 186,905

111,602 32,782 42,949 23,887 3,705 11,991 226,916

349,228 93,523 162,773 52,416 9,614 42,223 709,777

428,692 115,061 171,716 90,933 19,272 48,496 874,170

35,237 1,282 4,519 6,087 176 8,833 56,134

40,703 1,264 5,024 7,883 640 10,768 66,282

130,969 4,470 18,776 25,289 445 28,132 208,081

144,271 3,588 16,909 34,669 2,132 35,888 237,457

0 0 0 17,539 17,539 3,330,967

20 6,634 0 25,297 31,951 3,909,806

0 6 4 4,778 4,788 710,621

7 2,352 11 6,267 8,637 785,278

0 6 17 18,279 18,302 2,809,887

18 6,591 47 22,061 28,717 3,249,421

0 0 0 277 277 130,148

0 0 0 158 158 166,546

0 0 0 1,082 1,082 509,841

0 0 0 1,138 1,138 649,112

223,082 223,082 223,082 4,215,052

264,137 264,137 264,137 4,937,829

60,698 60,698 60,698 938,514

65,933 65,933 65,933 1,056,906

218,286 218,286 218,286 3,665,691

256,605 256,605 256,605 4,244,588

1,000 1,000 1,000 135,973

1,236 1,236 1,236 175,970

3,609 3,609 3,609 528,726

2,697 2,697 2,697 680,946

2,608 131,280 0 11,520 44,823 1,434 11,407 203,072

3,982 166,557 0 14,491 45,050 1,742 14,806 246,628

741 19,193 1 3,587 11,696 340 1,902 37,460

1,227 16,715 0 4,077 11,635 381 1,072 35,107

2,598 56,620 5 11,534 40,495 1,134 7,824 120,210

3,873 57,358 4 13,355 39,333 1,383 3,657 118,963

36 19,150 0 80 1,250 0 1,206 21,722

20 28,227 0 303 1,260 0 2,218 32,028

44 80,678 0 560 4,622 0 3,083 88,987

80 115,715 0 1,194 5,632 0 11,057 133,678

84 486 746 1,316 204,388

133 0 887 1,020 247,648

2 286 202 490 37,950

0 0 250 250 35,357

25 317 719 1,061 121,271

0 209 847 1,056 120,019

42 0 0 42 21,764

0 0 0 0 32,028

42 0 0 42 89,029

168 0 0 168 133,846

2,779 1,368 4,486 17,896 1,464 27,993

3,924 2,356 5,459 20,275 2,120 34,134

750 290 1,194 4,277 345 6,856

985 675 1,014 4,917 446 8,037

2,731 1,152 4,404 17,672 1,153 27,112

3,843 2,308 4,373 19,754 1,670 31,948

0 1 0 224 0 225

0 0 38 98 0 136

2 102 124 381 0 609

16 0 310 284 0 610

15 1,439 0 746 2,200 30,193 234,581 5,579,948

0 1,807 36 850 2,693 36,827 284,475 6,516,360

6 351 0 206 563 7,419 45,369 1,237,521

0 304 0 251 555 8,592 43,949 1,348,753

97 1,331 0 710 2,138 29,250 150,521 4,774,331

0 1,516 0 795 2,311 34,259 154,278 5,421,089

0 0 0 0 0 225 21,989 198,331

0 0 12 0 12 148 32,176 264,486

0 0 0 0 0 609 89,638 781,381

0 0 36 0 36 646 134,492 1,013,358

Auto Monitor

THE OTHER SIDE

Getting Personal with Parakramsinh G Jadeja, Chairman & Managing Director, Jyoti CNC Automation If not in the industry, where would you be? Since my childhood days, I was passionate about sports. My life was revolving around chess and cricket. In fact, a chance of going abroad as a cricket team player was ruined by my endeavour in the machine tools industry. Chess was also on the cards and I’ve performed significantly at state level championships. I believe that if not in the machine tool industry, I would surely be enjoying a career in sports What car do you drive? What do you dream of driving? I love driving a lot and it happens to be my most preferred leisure activity. I drive the Honda CRV here and at France (where we have our subsidiary plant) I prefer my Audi Q7. I am planning to buy a BMW 8 Series very soon Your most recent indulgence… Other than the work I do, I am associated with organisations working on developing a traffic sense. On a personal level, I used to groom youngsters at my company by means of active involvement with academic institutes and nurtured a fresh breed of engineers What are you currently reading? My reading revolves around certain spiritual aspects of life. Currently I am reading ‘Es Dhammo Sanatano’ by Osho on Lord Buddha What is Mr Jadeja doing when not talking about the industry? I try to utilise my quality time with my family members and my team members as well Outdoor activity you would miss office for… Of course I would miss office to drive across the beauty of nature or a game of chess with old friends! (At our old roadside gathering) Where did you go for your last holiday? I’ve taken my most awaited vacation with my family to Europe. We have cruised through Strasbourg, Paris, Viena, Luzern, Salzburg and some of the outskirts thoroughly. The experience of our access through the Black Forests in Germany was marvellous You get angry when… Someone lies (or is malfunctioning)! I believe everybody is entitled to make a mistake, I only expect to admit the same with a spirit What is the one thing you would like to change about you? In fact there are few. For instance, I would like to change my habit of working even on holidays! I am keen to spare valuable time for my family. Yes, I would like to work out regularly at the gym and get myself in shape

Illustration: Sachin Pandit

Best thing to have happened to you… There are bundle of priceless things have happened, be it my parents, my wife, my loving daughter, my family members, my spiritual guru, my company, my team members and this wonderful life itself !

1 - 15 September 2011

In Person Parakramsinh G Jadeja, from a very early age, chose to go by his own rules. He had a yen for sports, design and innovation and wanted to give shape and form to y his visions. He was barely 20-years old,, when he established his company, Jyoti. After that, there was owing ten years, he no stopping him. In the following went on to design and innovate ate a range of products that proved cutting-edge ge in the industry. He introduced maintenance e free gear boxes for small type lathes in 1989. He designed several special purpose machines es that helped the industry to bring substantial al price reduction in some textile componentss manufactured in Rajkot. In 1996, he also designed ned the twin spindle (chucker) type machine in Rajkot and designed and manufactured the ﬁrst CNC turning centre ear. He also in Gujarat the following year. hines developed innovative machines wer like the power sect and power VMC 40 linear in India. He has received a number off d awards for innovation and entrepreneurship through the years. He is married and lives with his family in Rajkot, Gujarat.

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