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. 13 No. 03
w w w. a mo nline . in
11 February 2013
INTERVIEW
32 Pages
Pg 08
`50
Pg 14
“ERP Can Save 15-20 pc In Costs”
Booted Hatchbacks
Thiru Vengadam, MD & CEO, IFS Solutions India Pvt Ltd
The Sail sedan will see competition hotting up.
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ABS Race Heats Up Anand Mohan Mumbai
B
osch and Continental are burning the midnight oil to be the first to introduce two-wheeler single-channel antilock braking system (ABS) units in the Indian market. ABS on two wheelers is a fairly new feature with only the Honda CBR250R and TVS Apache RTR180 having it as an optional feature. Both these bikes use combined ABS systems, which means it prevents both wheels from locking during emergency braking situations. It is an ideal system but shoots up the cost of the bike. Our market’s price sensitivity does not allow manufacturers the luxury of providing combined ABS systems on smaller capacity motorcycles. That’s the reason why component majors Bosch and Continental are developing single-channel ABS units specifically for the Indian market.
Single-channel ABS dumbs down the system in a way, robbing it of its complete function of preventing both wheels from locking. Instead, the ABS is applied to a single wheel, essentially halving the effect. That translates to a lighter unit with fewer parts, making it cheaper. All that’s needed is a motorcycle with a hydraulic brake system. Both component majors see potential for success with this technology. They are working closely with OEMs to introduce variants that offer single-channel ABS as soon as possible. Balasubramanian, Deputy Managing Director, Bosch Chassis Systems India Limited said, “We are confident we will be the first to introduce single-channel ABS in the Indian market. Expect it sometime this year.” Continental revealed in December 2012 to Auto Monitor that prototypes of their ABS units were undergoing testing in collaboration with OEMs. The company is also looking at India
Growth Pangs DATA MONITOR Top 5 2W Makers Company
Dec-11
Dec-12
HML
521,922
527,375
Change 1.04%
HMSI
179,857
199,237
10.78%
Bajaj Auto
169,485
198,394
17.06%
TVS
146,747
144,561
-1.49%
Suzuki
26,539
33,313
25.52%
Top 5 2W Exporters Company
Dec-11
Dec-12
Bajaj Auto
94,214
99,956
Change 6.09%
IYM
11,686
22,360
91.34%
HMSI
11,465
18,275
59.40%
TVS
21,158
17,169
-18.85%
HML
18,354
14,240
-22.41%
* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL
The projections of the AMP remain unfulfilled, and the duty structure of the auto industry leave much to be desired. Nabeel A Khan reports.
A
s the first month of the year concludes, the automotive industry continues to perform poorly despite a number of measures to create excitement in the market. Sales volumes remained weak in all segments. The industry keeps hope alive and expects new measures from the government to support it. The recent rate cuts announced by the Reserve Bank of India have raised hopes in the industry. “This cut is just the beginning and shows that the focus is on industrial growth and improving
the economy. This will be reflected in the coming months’ sales. However, for further strengthening we need more such announcements,” said Vishnu Mathur, Director General, SIAM. The RBI reduced the repo rate – the rate at which banks borrow money from RBI – by 25 basis points in its third monetary policy. RBI also cut cash reserve ratio (CRR) – the share of deposits banks have to keep with the central bank – by 25 basis points. Commenting on the move, Pawan Goenka, President, Automotive & Farm Equipment
Photograph: Bosch
Single-channel ABS will soon make its appearance on Indian motor bikes.
ABS prevents the wheels from locking, even when the road is wet.
as an export hub for single-channel ABS systems. Even if a small percentage of our 15 million plus two wheeler market adopts ABS systems, we have a major market waiting to be tapped. Single-channel ABS may not be as effective, but if it reduces braking distances and allows control over at least one of the two wheels during emergen-
cy braking, a major accident can be averted. The UN has marked 2011-2020 as the decade of action for road safety with a target to reduce road deaths by 50 percent. Two-wheeler riders are the most susceptible. This ‘something is better than nothing’ approach is a good place to start to improve motorcycle safety, but it should only be a start.
Sectors, Mahindra & Mahindra, said, “Over the past few months, economic growth has clearly bottomed out, and the slowdown in manufacturing is a concern. Today’s combo of a repo as well as CRR cut is a welcome announcement and hopefully will help revive investments in the core sectors which the economy needs. Coupled with the recent policy announcement by the Government, I see this as a good beginning.” The rate cuts will certainly allow the cost of capital to go down and eventually help the industry, since most cars in India are financed. However, the macroeconomic situation remains under pressure, and that is not a good sign. At 5-5.5 percent, the country is experiencing the lowest economic growth in ten years. “However, the global scenario getting better, so we may expect a better economic environment which will help India also,” said Rakesh Batra, Partner, Automotive prac-
tices, Ernst & Young.
Taxes and Excise Duties Yet vehicle makers continue to rely on government for help in kickstarting new initiatives to support them, such as restructuring excise duty. The Society of Indian Automobile Manufacturers (SIAM) called for a new excise structure which should be in tune with the gap in the Automotive Mission Plan (AMP). SIAM has recommended that the AMP be extended by 10 years to 2026, as it has been falling short in achieving its target by over $34 billon. “The recommendation has been accepted and work is on,” Vishnu Mathur said. However, he did not clearly state whether the revenue target will also be upgraded from $145 billion target till 2016. “We are working on it, it has to be seen if the revenue volume will also increase looking at the extension of it.” The industry has sought for
Contd. on Pg 17