Auto Monitor - 16-30 April 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. 07

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

16-30 April 2011

INTERVIEW BMW TO EXPAND INFRASTRUCTURE TO PROPEL GROWTH IN INDIA

95% 90% 85%

95%

AUTONOMICS CARS AND UTILITY VEHICLES: THE LOCALISATION DRIVE

93%

89% 83%

80% 75% 70% 65% 60% 55% 50% 2010-11 E

2015-16 F

` 50/-

Pg 16

Continental powered to steer India

NEWS IN BRIEF Eaton kicks off its integrated test lab in India Eaton Corporation recently kick started an integrated test lab for its vehicle and hydraulics products at Ranjangaon, India. The lab is located within the existing truck components plant premises and has 38,000 square feet of testing area.

‘The new integrated test lab is an investment in efficient product design and innovation for our customers,’ said Chairman and Chief Executive Officer, Eaton, Alexander Cutler. The lab can conduct hardware tests to validate current and future designs for both global and regional products. It can test numerous hydraulics components such as gear, vane and piston pumps, steering control units and valves for performance and endurance limits. In addition to the hydraulic components, the lab has capabilities to test vehicle products such as valve trains, synchronizers and roll over valves. The facility will also house a supercharger test stand in the future.

DATA MONITOR Domestic Sales Sector

Apr-Feb 10

Apr-Feb 11

Change

1,751,680

2,274,553

29.85%

465,369

598,679

28.65%

400,041

479,875

19.96%

8,450,797

10,694,072

26.55%

TOTAL

11,067,887

14,047,179

26.92%

Exports Sector

Apr-Feb 10

Apr-Feb 11

Change

405,864

402,382

-0.86%

39,243

67,818

72.82%

156,703

249,613

59.29%

1,042,663

1,428,157

36.97%

TOTAL

1,644,473

2,147,970

30.62%

* Source: SIAM/ ** all sub segments considered

S mall cars (A1+A2) Mid s iz e (A3)

100%

Pg 10

Andreas Schaaf, BMW India President

54 Pages

Abhishek Parekh Frankfurt, Germany

ontinental is looking to launch electronically powered steering systems for four wheelers in India this fiscal to enhance its presence in the automotive sector. The product is likely to be part of Continental’s chassis and safety systems division but the company is yet to take a call on whether to launch it in a separate joint venture or as a part of the existing JV with Rico in India. ‘We are looking to enhance our presence in India and would be launching various active and passive safety products from our global portfolio. We are also evaluating entry into new product segments as per the market requirements. Our foray into steering systems business is at an advanced stage and we are in discussion with potential customers for appropriate positioning and entry strategy as this will be a new product for Continental and for India as a market,’ said Member of the Executive

Board, Chassis & Safety Division, Continental Corporation, Dr Ralf Cramer in an exclusive interaction with Auto Monitor at company headquarters in Frankfurt. He added that in most other markets manufacturers have moved from hydraulic power steering to electronically operated power steering systems but many Indian passenger car manufacturers are looking to offer a suitable option to customers. Dr Cramer added that a vehicle can offer around five to six percent better fuel efficiency by switching from hydraulic power steering to electronic power steering and Continental can offer suitable solutions to Indian OEMs in this area. He added that electronically driven electric power steering systems would be a new product for Continental globally and would be offered primarily in India. The company may later evaluate if this product can be introduced in other emerging markets. Most automotive markets have moved to electric power

Dr Ralf Cramer

steering in a major way and the opportunity for a global player like Continental is this limited to few markets where hydraulic or electronic power steering are predominant. An electromechanically driven electric power steering as propounded by Continental enables vehicle control at the column rather than at

the rack level thus providing safety and design efficiency. Continental is a leading supplier of brake systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers. Continental’s automotive group with its three divisions: chassis & safety (sales of approximately Euro4.4 billion in 2009, 27,000 employees), powertrain (sales of approximately Euro3.4 billion in 2009, 24,000 employees) and interior (sales of approximately Euro4.4 billion in 2009, 27,000 employees) achieved sales of approximately Euro12 billion in 2009. The automotive group is present in more than 130 locations worldwide. The chassis & safety division develops and manufactures electronic and hydraulic brake and chassis control systems, sensors, driver assistance systems, airbag electronics and sensorics, washer systems and electronic air suspension systems.

India to drive cost reduction of EV tech: FEV Abhishek Parekh Pune

EV India, a wholly owned subsidiary of German vehicle and engine development company FEV, is looking to expand its capabilities to transmission development and testing. Currently, it has a full-fledged engine testing infrastructure and is looking to grow its business by adding a vehicle development and testing facility as well as transmission testing capabilities. ‘We will be increasing our range of testing equipments for OEMs in India and localise them to bring the cost down. We are hoping to have a significant share of revenues from equipment business in India in addition to expanding our development and testing capabilities to transmissions and complete vehicle for customers in India,’ said Joint Managing Director, FEV India, Dr Ing Rainer Thiele in an exclusive interaction with Auto Monitor. He added that FEV India is looking for significant growth in off shore business

NEW

Dr Ing Rainer Thiele, Joint MD, FEV India

(serving the German parent and its subsidiaries around the world) and plans to ramp up headcount from around 80 to 200 people. It also actively works with Tier I component manufacturers with the approval from OEMs especially in new engine or vehicle development projects. Such development work involves helping OEMs and key suppliers in developmental and emission compliance projects. ‘The key technologies lie with the Tier I

| | | | | |

and OEMs in most cases but we actively support and assist them,’ said Thiele. FEV India’s technical centre in India kicked off around 2009. ‘The effort has been to scale up the centre to FEV’s global standards in terms of technology and delivery capability in engine designing and testing area,’ he said. The Pune engineering centre has four engine test benches with two additional ones planned in the next few months. Currently the focus is to make the centre measure up to global standards for engine design and testing. Subsequently, the German design firm plans to include vehicle testing capability by adding chassis dyno testing capability to its competency by around the end of next year. Most equipment required for engine testing is modular and can be added to cater to growing demand. The engineering centre has been operational since 2009 in Talegaon near Pune. It provides services in the areas including engine testing for endurance, mechanical, P&E, design services,

Gandhi Park Gujarat University Exhibition Hall Auto Cluster Exhibition Centre Chennai Trade Centre Poddar Plaza Garware Stadium

02230034690 | www.engg-expo.com

CAE support, vehicle calibration, installation and services of test systems, on site customer support and supplier identification. The centre has carried out different level of developmental work on tractors, gensets, two-wheelers and commercial vehicles for Indian customers. Thiele does not expect a major shift to alternative fuel technologies in the Indian market. FEV is looking for significant addition to existing projects in hybrid and electric powertrain technologies. ‘We expect India to drive low cost, viable commercial solutions for hybrid and electric technologies. We may have similar scenario as has been with the common rail systems, where Indian engineers and prevalent cost pressures played a major role in pushing the cost down for the fuel injection technology,’ he explained. India is considered to be a major driver in forcing developers like Bosch and Delphi to lower cost and make CRDI technology cheaper and more accessible, according to Thiele.

CONTENTS CORPORATE IAC opens dedicated plant for Mahindra Navistar

International Automotive Components kicked off a new facility at Chakan near Pune to manufacture interior and exterior parts to cater to requirements of Mahindra Navistar

SIAM predicts 15 percent growth

SIAM predicts the auto growth to moderate in FY12 due to increase in the commodity prices, rate of finance and additional tax on diesel engine vehicles in Delhi

GLOBAL WATCH

Koenigsegg Agera, Vyrus launched

Toyota outbids Asia, Europe plaintiffs to join acceleration

Chrysler faces $10,000 loss on every Fiat 500 EV sold

Mercedes recalls M class in Germany, US over cruise-control issues

Chinese firm buys majority stake in Germany’s Preh

InterGlobe Established Products launched supercar Koenigsegg Agera and custom-made motorcycle brand Vyrus at `12.5 crore and ` 20 lakh respectively

AVL to manufacture Compact series and fuel metre in India AVL India will supply its Compact series and fuel metres from India to the world markets

Plaintiffs from 13 countries cannot join US litigation against Toyota over sudden unintended acceleration of its vehicles

Chrysler Group will lose more than $10,000 on every battery-powered Fiat 500 it sells

Daimler’s Mercedes-Benz is recalling some older-model M-class SUVs in Germany and the US for issues related to cruise control that may lead to a crash

Joyson Investment Holding will take a majority stake in Preh GmbH for Euro 500 million

THE OTHER SIDE

08 Dinesh Tyagi, Director, ICAT

ICAT to develop infrastructure related to HEV, EV

The International Centre for Automotive Technology is setting up facilities for EV and HEV testing and development at its Manesar based R&D centre

NK Minda Group opens design centre in Taiwan

NK Minda Group has opened its design centre in Taiwan at an investment of ` 3.5 crore to enhance its business and quality of products

Ruukki to introduce advanced steel technology in India

Simone Niccolai, Managing Director, APAC, Maserati

Niccolai has wide ranging experience in business development, product marketing, brand development, trade, distribution, finance and an operating in multinational environments and across cultures

Ruukki is looking to strengthen its presence in India with its range of high-strength, wear-resistant and special coated steels for automotive and engineering sectors

Sandeep Khosla

Associate Vice President: Sudhanva Jategaonkar

Sales Co-Ordinator:

Akshata Rane

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CORPORATE

IAC opens dedicated plant for Mahindra Navistar Nabeel A Khan Pune

nternational Automotive Components (IAC) Group, a leading global supplier of automotive components and systems, including interior and exterior trim, announced opening of a new facility at Chakan near Pune. The company will set up one more plant here in 2012. Celebrating the opening of 110,000-square-foot facility, co-CEO and President of North America and Asia, Jim Kamsickas said ‘It’s rewarding to see the advancements and contributions our company has made in this thriving automotive region in such a short period of time.’ The company began organically in early 2008 and established a Technical and Engineering Centre in Pune. The Chakan facility represents a total investment of approximately $15 million and will open job opportunities for more than 200 individuals. This new plant will be dedicated to Mahindra Navistar and Mahindra and Mahindra Vehicle Manufacturing. It will produce similar interior and exterior parts as its other plants, but will be more focused on a single customer. The older Chakan plant will be focused on other OEM customers in the region. Talking about the contribution to its revenue from the Indian market, Senior Vice President, Asian Operations for International Automotive Components, Gajanan V Gandhe, told Auto Monitor, ‘We do not

16 - 30 April 2011

Gajanan Gandhe, Senior VP -IAC Asia

have the breakout of our Indian sales from our Asia sales. But our growth in India has followed the rapid growth of the auto industry in this region and is expected to continue to follow the same aggressive growth rate over the next several years.’ The opening of the facility complements IAC’s existing manufacturing facilities and engineering centre in the Pune area. This will help expand the company’s presence in the region following its recent expansion in the Indian market. In January 2011, IAC acquired Manesarbased Multivac India, a Tier 1 supplier of vehicle headliners, instrument panels, interior trim and door panels to key global vehicle manufacturers. This strategic acquisition will help the company establish a Northern India footprint in proximity to the New Delhi automotive region. MarutiSuzuki was the latest addition in its customers’ list. ‘Based on our plan today, we

have a commitment in place to build another manufacturing unit in the Chakan region by 2012 while other expansion plans will be determined by customer need,’ Gandhe added. In order to improve quality and cut costs, the company claims to be introducing new manufacturing technologies for development of vehicle interiors, including process like cold-staking. IAC is vertically integrated, which helps it bring costs down while improving overall quality and performance. For example, it manufactures many of the components (such as ducting and air vent channels) that go into the instrument panel. Most suppliers outsource these components, which add cost and complexity. The existing production of the company here in India is essentially in support of the domestic market. However, it also provides engineering support to North American and other Asian regions. Elaborating on the segment where the maximum growth is expected in the country, Gandhe said, ‘The Indian commercial vehicle market is growing at a very strong pace, and we will see strong growth from that market segment. However, overall the PV market will sustain the largest growth and we will see more growth based on sheer volume in this segment.’ The company touched $3.7 billion global sales in 2010. While the overall Asia sales in 2010 was $200 million and is expected to sustain its growth in the market.

ALL gears up for future with new MD Our Bureau Chennai

inod K Dasari, who assumed the position of Managing Director of the second largest commercial vehicle manufacturer Ashok Leyland, has set his goals and priorities straight. He wants the company to be one among the top ten truck makers and top five bus manufacturers in the world in less than ten years. Currently it is close to the 20th rank and Dasari is preparing the blueprint to achieve these goals. At a recent interaction with the media, Dasari listed his priorities that include manpower, training, a new branding exercise that is expressive of the company’s intent and goals. Besides, he would like to look at options to acquire companies globally as it will give the requisite volume as well as the speed for growth. The company currently owns Avia in the Czech Republic churning out around 1,500 vehicles annually. Besides, it also holds 26 percent stake in the bus manufacturer Optare based in the UK. ‘We are looking at several options including acquisitions and having stakes. The objective is to build Ashok Leyland like an earthquake-proof skyscraper,’ he said. Dasari will be meeting all the employees soon to make his intent percolate down to the entire value chain so that the thoughts are adequately ingrained and put the company in aggressive growth mode. As part of its strategy, the company has already created capacity by commissioning its Uttarakhand plant last year.

Vinod K Dasari, MD, ALL

During the last six decades Ashok Leyland has been focusing on medium and heavy duty vehicles. And with the unveiling of Dost, the 1.25 tonner, the company has entered the LCV segment. According to him Dost will be available for customers from June. Around that time it will be launching its backhoe loader, which is being developed along with John Deere. As part of its ongoing exercise the company will focus on cost control as the margins in the industry is only around fi ve percent. In less than two years all the trucks that the company will roll out will be based on the U-Truck platform, which will give a new dimension to the company as a whole, he said. In addition, it is also working on a new cab for the trucks, a new gearbox and also the Neptune range of engines, which is currently under customer trials. Currently around 10 percent of the sales comes from its overseas operations and Dasari is hopeful of getting about 25 percent in less than fi ve years.

Auto Monitor

16 - 30 APRIL 2011

INTERVIEW

BMW to expand infrastructure to propel growth in India The luxury carmaker BMW is pegging the segment to reach the annual sales of 1.5-lakh units in India in the next 10 years, is hoping to continue its dominance in the market share. The company has recently acquired additional land in Chennai to expand its plant further and plans to push an investment of `180 crore by the end of 2012. BMW India President, Andreas Schaaf, speaks to Auto Monitor in an interview. Nabeel A Khan Delhi Following recent announcements of incentives for hybrid and EVs by the government of India, are you planning to launch any product? We have not yet discussed as to what our strategy is for the hybrid and EVs in India so far. The BMW group makes most environmentfriendly cars. We have the lowest ever CO2 consumption and we are also the front runners in sustainability and efficient dynamic. Our cars are sustainable at the same time dynamic. But we are yet to think about these (hybrid and EVs) vehicles to bring to India. However, when the country will be ready for such vehicles we will certainly bring them. I have no doubt that India will follow the same path as all other countries in the world. Do you fi nd any constraints in launching hybrid and EVs in India?

I think there are no constraints at all. I think it’s a question of how sustainable and how high the demand is for these vehicles and this has to do with the development stage of a country. Do you think Indian consumers are not inclined towards EV and hybrids as of now? I don’t say that Indian consumers don’t have the topic in their mind, but if you compare India with other part of the world, then you will certainly fi nd that there is a difference of awareness about Hybrid and EVs not only from the consumer point of view but also the political point of view. India is right now working on defi ning emission strategies which we have seen happening in other countries 10 years ago. This is a natural way of development of a country. Whenever there is right timing and we see that there is enough demand for it, then we will have the answer for it. So when we see the demand in India we will launch it but right now we

BMW 6 series convertible launched at `95 lakh

ontinuing its confidence in the Indian premium car market, BMW India has introduced its new 6 Series convertible in India with a price-tag of `95 lakh (ex-showroom) recently.

Andreas Schaaf with the 6 Series at the launch

don’t see demand for Hybrid and EVs in India. We have to look into it very closely. We have to see the sustainability of the demand as well as the infrastructure. What are your expansion plans for India? Besides rolling out new products in the next couple of years, we will double our dealerships across India to 40 in 2012 and invest more at the Chennai plant to meet our future requirements. We have already acquired an additional 20 acres of land in the same vicinity to enhance the size of our Chennai facility, while our annual production capacity has also been increased to 10,000 units from 8,000 units. If need be, we will produce more cars. We are investing a total of Rs 180 crores by the end of 2012. What is your prediction for the luxury car segment in India and BMW in particular? In 2010, BMW India sold 6,426 units, capturing 40 per cent of the car market that stood at around 15,000 units. We hope to see 20-30 per cent growth for the next few years. However, I expect the luxury segment to grow over ten times in the next ten years to reach 1.5 lakh units annual sales from 15000 units in 2010.

The luxury car will be available in petrol version as completely built-up unit (CBU), which comes with an eight-speed sports automatic transmission and a 4.4-litre V8 engine with ‘TwinPower Turbo Technology’, delivering 407 hp. The car accelerates to 100 km/hr in just five seconds with a top speed of 250 km/hr. Speaking on the occasion, President, BMW India, Andreas Schaaf said, ‘The new BMW 6 Series convertible with its breathtaking aesthetics is the perfect vehicle for an exclusive lifestyle. The elegant silhouette, torquey engine, perfect road holding and refi ned interiors with perfection to the smallest detail, create an ultra-luxurious open-top driving experience that could not possibly get any better.’ The car is available in eight colours with alpine white as non-metallic paintwork and the rest being metallic shades of Orion silver, titanium silver, black sapphire, Havanna, space grey, deep sea blue and vermillion red.

ELITE MOLD

Andreas Schaaf, President, BMW India

Are you looking at manufacturing any of the engines locally following introductions of new customs duty on CKD? We would not manufacture engines locally. I think that might affect because engines are the heart of BMW cars. And for business point of view also it would not make sense to locally produce it, but I would not neglect that parts can be sent from here when it comes to engine. Are you planning to increase the volume of components sourced from Indian manufacturers? We already source components from India. As I have said, we have a strategy in place for India and we have an international processing office where a significant number of people are working for it. They are working on identif ying the Indian suppliers. We are either about to get more components from Indian manufacturers or we have already started getting some of them. We also have some parts developed here and being distributed to our worldwide network. Following recent development about customs duty on CKD, are you planning to increase the price of cars? At this point of time, it is too early to say anything about this

because we have just got the notification. Our team is working and looking at the details of the latest defi nition of CKD and other terms and conditions. So it would be too early to come up with any conclusion. Give us some time then we will decide on it. At this point of time we are confident that we fulfi ll the requirement and we don’t see any major impact on our operations in India. You said that BMW will be looking at only the premium segment in India at the same time you plan to be aggressive in new product portfolio. Can you elaborate? Premium means you can have a premium product in every product range. If you look at the success story of Mini, this one was the fi rst small car to set up as a premium segment in the market. So premium is not defi ned by any price range. I would say premium is defi ned by its reference point. How much you are able to charge more than another car to a reference point. The decision to come up with new product portfolio, whether launching X1 on a lower range of market, is a strategic decision for a premium manufacturer like us. Any plans to launch more cars in low price segment like X1? We have attractive products through out the range and we don’t see any reason to not launch the full range of product in India. Whenever there is a market demand for it, we will defi nitely launch them. And with the launch of X1 we have enabled people to own a BMW car who dreamt about it. We will be launching BMW X3 this year as CKD from Chennai facility. In India convertibles are traditionally not so popular car. Thus, what kind of strategy do you have for it? Frankly speaking, you do not need a major strategy. The car speaks for itself and the driving experience is outstanding and people will love it whenever they drive it.

Add: No.17 Yongjiang(s)Road Beilun Zone.Ningbo.China P.C.: 315806 Sales Tel: Tracy Lin +86-13706848069 +86-574-86148158 After-sales Tel: Steven Lin +86-13566032563 +86-574-86117178-804 Fax: +86-574-86117138 Email: tracy@cmmould.com.cn www.elitemould.cc

What are the changes you have made in convertible to make it suitable for India? There is no major change in the car. We have made very slight changes when it comes to ground clearance for instance, and the air fi lter; but these are very minor modifications for the Indian market which we have made.

EDITORIAL Shaping India’s manufacturing industry vision

he fi nancial year 2011-12 begins with an encouraging note especially for the automotive industry as it witnessed 28 percent growth last fiscal. Domestic sales grew by 26 percent while exports registered 30 percent. The exports grew further than the domestic market due to a couple of factors — the low base of last year and the demand for small and medium size cars in the second hemisphere markets. While the growth is no doubt a propellant for the economy as a whole, the vehicle manufacturers are still facing constrains in terms of components supply. People in the know feel that few companies including Mahindras, Tata Motors and Ashok Leyland would have manufactured and sold at least 20 percent more vehicles in the last fi nancial year, had there not been supply chain constraints. The majority of the European and North American markets have yet to come back to the original levels and unless the domestic component industry addresses issues relating to capacity constraints, it would miss the bus in the exports business. Realising that manufacturing is the key to inclusive growth, the government is readying a new policy. Touted as a radical policy by the Minister for Commerce and Industry, Anand Sharma, it is expected to be a harbinger of greenfield investments in cutting-edge technologies that are still alien to this country. According to a survey released by CII, the overall performance of the industry showed improvement in fiscal 2011 with about 34 percent of the 121 sectors registering more than 20 percent growth. The Minister wanted the country to emerge as the technology workshop of the world like the way it is becoming the manufacturing hub for small cars. However, it would fail to ignite the minds of entrepreneurs, if the policy does not encompass compatibility with conducive labour laws. The industry is looking forward to a policy that has intent and intelligence and with plethoric potential and promises. Rising raw material cost and cost of fi nance makes the already thin margins thinner, especially for the component industry. Yet another hurdle hampering capacity expansion is the skyrocketing real estate prices. Traditionally, the auto

industry has been growing in select regions, which adds to our woes. Therefore, the government should take these concerns in to account while formulating the manufacturing policy. In this issue, you will find a report on the recently concluded Automechanika Istanbul, which was clearly an indicator of the revival of the global economy. Turkey, with more than 65 percent of the population less than 26 years of age, is emerging as a major hub in the Europe. Currently it is the seventh largest auto maker in Europe. Both the vehicle and component manufacturers in India can look at Turkey and leverage its strategic geographical location of being a conduit between Asia and Europe, for spreading their tentacles further. The auto industry has been witnessing significant growth rates over the last few years. Though the momentum has given immense opportunities to both components as well as vehicle manufacturers, it has, alongside, come with a new set of challenges. And noted amongst many is the concern to reduce the time to market new products. This is because the life cycle of the vehicles is constantly shrinking, while the consumers’ aspirations scale up to newer dimensions. The phenomenon drives the vehicle manufacturers to launch new products at shorter intervals and it is only possible if the new product development time is squeezed to the extent possible. One of the time consuming aspects in the new product development cycle is testing, which drove us to make this issue in your hands as a Focus issue on Automotive Testing. You will fi nd some interesting articles on AVL, MathWorks, Moog and such companies. Do send us your feedback.

T. Murrali t.murrali@infomedia18.in

IMAGE of the fortnight

FORTNIGHT’S QUOTES ‘We are watching the Japanese supply situation very, very carefully. It is going to have an impact on production’ Sergio Marchionne, Fiat-Chrysler, CEO

‘We were in touch with Turin but no longer have contact with Fiat on this matter’ Bodo Uebber, Finance Chief, Daimler, on Fiat stake purchase rumour and acquisition oppurtunities

‘The recall policy matter is not on active consideration right now’ Dr Pawan Goenka, SIAM President

‘It is better to focus on few things and do them well’ Rajiv Bajaj, MD, Bajaj Auto on company’s re-entry in the scooters segment

‘It will not be a single strategy but a multi-pronged strategy that we will work on’ Vinod Dasari, MD, Ashok Leyland

Auto Monitor Editorial Team Editor T. Murrali Principal Correspondent Abhishek Parekh Senior Correspondent Nabeel A Khan Correspondents Shambhavi Anand TS Bhargav Senior Copy Editor Nandita Rohit Kapadia Contributing Editors Sirish Chandran Bertrand D’Souza

Design & Photography Chief Photographer Mexy Xavier Asst. Art Director Varuna Naik Senior Designer Mahesh Talkar Scanning & Colour Correction Ravikumar Potdar, Ravi Salian, Sanjay Shelar Production Team Dnyaneshwar Goythale, Vikas Bobhate, Pravin Koyande Photographer Neha Mithbawkar, Joshua Navalkar

Send in your feedback and comments to: The Editor, AUTO MONITOR, Infomedia18 Ltd, 4th Floor, Prakashdeep building, 7 Tolstoy Marg, New Delhi – 110001. Ph: +91 11 6630 3282, Email: automonitor@infomedia18.in

Simone Niccolai, MD, APAC, Maserati and Ashish Chordia, Chairman, Shreyans Group during the launch of Maserati in India

Maserati unveils new range in India Maserati recently launched its brand in India in collaboration with the Shreyans Group as its authorised distributor. It will be available for delivery by August this year. The company showcased its three most popular cars — Quattroporte sedan, GranTurismo and GranCabrio. The cars will cost `1.2 crore onwards. ‘We will start this year with one dealership in Mumbai and the second one will open in New Delhi in 2012,’ said MD, Asia-Pacific, Simone Niccolai. The company plans to open dealerships in seven cities by 2015. The global sales of the company grew 18 percent in 2010 at 5,776 units. China is the biggest market for the company in the Asia-Pacific region and last year accounted for 402 units. The company has presence in 62 countries. The company predicts that its sedan range will absorb 80 percent of its buyers in India, with the remaining 20 percent choosing the GranTurismo coupe and the GranCabrio convertible.

Auto Monitor

CORPORATE

SIAM predicts 15 percent growth Our Bureau New Delhi

he grow t h of India n automobile industry will be moderated in FY12 between 12 and 15 percent due to increase in the commodity prices, rate of finance and additional ta x on diesel engine vehicles in Delhi, the Society of Indian Automobile Manufacturers (SIAM) said in its annual report unveiled in Delhi recently. T he Ind ia n automobi le industry has grown at the rate of 26.17 percent in FY11, selling 15,513,156 units of vehicle from April 2010 to March 2011 as compared to 1,22,95,397 units in the corresponding period in the previous fiscal, according to the data released by SIAM. President, SIAM, Dr Pawan Goenka attributed the growth in FY11 to a variety of factors like robust economic growth, focus on rural areas, new model launches, higher spending on infrastructure development. Illustrating the prominent status of the country in the automotive industry, Goenka said, ‘India is the seventh largest automobile market in the world and with this kind of momentum we hope to reach the sixth position by overtaking Brazil this year.’ He added that over 50 cars are expected to be launched in FY12 in India. W hile the grow th in the Passenger Vehicle (PV) segment was reported to be 29.16 percent, by selling 2,520,421 units in FY11 in the domestic market as compared to 1,951,333 units of the same period a year ago, while SIAM projects

16 - 30 APRIL 2011

the segment to Growth rate in FY11 grow bet ween 35 16-18 percent. 30 Commercial veh icle (C V ), 25 which reportGrowth (%) FY 11 20 ed a g row t h FY12 Forecast by SIAM of 26.97 per- 15 (%) cent, by selling 676,408 units 10 in FY11 as com5 pared to 532,721 0 units in t he Source: SIAM PV CV 2W 3W previous fiscal is expected to grow bet ween ants respectively in FY11. 14-16 percent in next fiscal. While the growth in the domesThe growth in the three-wheeltic market saw a boost in all the er and two wheeler segments sectors and the export market stood at 19.44 percent and showed a dismal growth of two 25.82 percent respectively in percent in the PV segment this FY11 which SIAM forecasts will financial year. SIAM opined that maintain a moderated growth the slowdown in Europe restricted of 9-11 percent and 12-14 perthe export of small cars there, hich cent respectively. was one of the reasons that exports The growth in PV in Q4 of could perform well. The segments FY11 clocked at 23 percent performed fairly well in exports compared to the Q4 FY10. The were — CVs on the top with a growth t wo-wheeler segment regisof 70 percent, two-wheelers grew tered a growth of 20 percent in by 35 percent and three-wheelers Q4 of FY11 over Q4 FY10. While showed a growth of 56 percent the growth in the three-wheeler on YoY. segment was reported to be 20 Ta l k ing about t he outpercent, CVs reported the lowlook for 2011-12, Goenka said, est growth of 13 percent in same ‘We expect the growth for the period. industry to moderate and settle The growth of the automodown at around 12-15 percent bile industry was robust in the t his year.’ Good economic last quarter as well as entire growth forecast, government’s FY11. In March 2011 the indusfocus on rural development, try registered a poorer growth unchanged excise dut y and rate of 19.42 percent as comhigher disposable income seem pared to the cumulative growth to be some of the driving fac26 percent growth. tors in FY12. Increase in vehicle There were a total of 24 finance rate, rise in commodity launches in the PV segment and prices, additional tax on diesel 16 in two-wheeler segment. PV vehicles in Delhi and differand two-wheeler segment also ential excise duty might act as saw the introduction of 40 and a bottleneck. seven refresh models and vari-

John Deere evaluating entry into low HP tractor segment in India Our Bureau Mumbai

ohn Deere is evaluating entry in the low HP (below 20 HP) tractor segment in India and is currently studying the market segment and its requirements for the purpose. It is looking at tapping the expertise of its JVs in China for launching products in the Indian market. ‘Mechanisation levels in the Indian market are still low compared to even other Asian countries due to fragmented land holding structures and other historical reasons. We are evaluating if suitable products can be introduced in the market here,’ said Executive Vice President, John Deere Corporation, Bharat Vedak on the sidelines of an SAE India event held in Mumbai last month. John Deere is evaluating a second facility in India for increasing the capacity for tractors and may be looking at the northern part of the country for the purpose. The global tractor major is looking for a bigger presence in agriculture equipment segment including

harvesters and a new facility coming up near Patiala would be manufacturing harvesters for the Indian market. The company had entered into a JV with Larsen & Toubro (L&T) for manufacturing agricultural equipments but then decided to go it alone in the Indian market. The company’s JV with Ashok Leyland is in the process of rolling out backhoe loaders for the Indian market. Its activities would be subsequently expanded to include other construction equipments over the coming months. ‘We are looking to have a range of construction equipment in the Indian market through our JV with Ashok Leyland. We are looking to source engines for these equipments from our partner,’ added Vedak. The Pune facility currently manufactures 35, 40, 42, 47, 50, 55 and 70 HP capacity tractors for the domestic market. The company also exports to the US, Mexico, Turkey, North and South Africa, and South East Asia. John Deere is looking to significantly expand its range of agricultural equipments in the Indian market.

Bharat Vedak, Executive VP, John Deere; Richard Kleine, President, SAE Int; V Sumantran, Executive Vice Chairman, Hinduja Automotive; Shasank Srivastava, Chief GM (Marketing), Maruti; Deepak Sawkar, GM (R&D), Maruti & KC Vora, Deputy Director, ARAI Academy

Auto Monitor

16 - 30 April 2011

AUTONOMICS

Cars and utility vehicles: The localisation drive T

Sridhar Chandrashekhar Head, Automobiles, CRISIL Research Hetal Gandhi Team leader, CRISIL Research

he proportion of local parts in Indian cars and utility vehicles is set to rise over the next fi ve years. Three factors will drive this rise: (1) manufacturers’ need to reduce costs to offer models at competitive prices (2) the indigenisation drive by new entrants and (3) the imperative for manufacturers to reduce dependence on overseas sources for critical auto parts like fuel injection pumps and engine parts. The recent crisis in Japan and its impact on vehicle production across the globe underscores the significance of the third factor. Although foreign brands account for 80 percent of total vehicles produced, manufacturers source 80-85 percent of parts from domestic component makers. By 2015-16, CRISIL Research expects this proportion to increase to almost 90-95 percent. This rise in indigenisation will drive local component manufacturers to develop expertise to independently design and produce critical auto parts.

Intensifying competition will drive an increase in indigenisation Rising competition in the cars and utility vehicles (UVs) segment is driving manufacturers to increase the proportion of local parts in these vehicles. Competition has increased significantly in the past five years. While the number of manufacturers has increased from 14 to 21, the number of models launched has more than doubled from 21 to 49 over 2005-06 to 2010-11.

Trends in car segments S mall c ars (A 1+A 2) Mid s iz e (A 3)

100% 95%

As manufacturers pursue greater indigenisation levels, CRISIL Research expects the proportion of local parts in cars and UVs made in India to rise further to 90-95 percent by 2015-16

90%

83%

85% 80% 75% 70% 65% 60% 55% 50%

2010-11 E

2015-16 F

logistics, value addition and overseas labour, and price new models competitively. For instance, a 25 percent increase in the indigenisation level of its small car model Fabia enabled Skoda Auto to reduce prices of the model by 20 percent in 2010-11. As manufacturers pursue greater indigenisation levels, CRISIL Research expects the proportion of local parts in cars and UVs made in India to rise further to 90-95 percent by 2015-16.

A2*

2005- 2009- 2010- 2005- 2009- 2010- 2005- 2009- 201006 10 11E 06 10 11E 06 10 11E Market share of highest selling model

100%

54%

72%

62%

47%

46%

21%

35%

No. of players in the segment

No. of models in the segment

* Market share of top three models

Manufacturers have increased indigenous content in vehicles beyond the mandatory level to improve price-competitiveness. Regulations for the automobile sector in India (detailed in the Auto Policy 2002) mandate manufacturers to achieve 70 percent indigenisation by the fifth year of manufacturing a model. But manufacturers have already gone beyond that level — the proportion of local parts in cars and UVs was almost 85 percent in 2010-11. By increasing the proportion of local parts in a model, the manufacturers can reduce costs of

Trend in localisation levels in key car segments A likely steady growth in demand for cars and UVs will give manufacturers the necessary scale to increase the proportion of local parts in these vehicles. The top three Indian auto manufacturers — Maruti Suzuki, Hyundai Motors and Tata Motors — who account for 75 percent of automobile production, have achieved indigenisation levels of 80-85 percent across all their models. However, in the small car segment, relatively newer entrants like Toyota, Skoda, Volkswagen and Honda have achieved indi-

Import levels & market shares of Japanese car manufacturers in India (2010-11)

Market Market sshare hare

Import Import Content content Toyota Toyota

57% 3.2%

Honda Honda

28% 2.5%

Nisaan Nissan Maruti Suzuki Maruti S uzuki

21% 0.4% 8% 45.2% 20%

40%

93%

89%

Market shares of increased competition in FY06 & FY10 Particulars

95%

60%

80%

genisation levels of nearly 70, 30, 50 and 70 percent as of 2010-11. Annual demand for cars and utility vehicles is likely to grow at 15-16 percent by 2015-16. This growth will provide the newer manufacturers the required scale to increase local content in their vehicles to 80-85 percent over the period. To illustrate, Skoda is reported to step up the proportion of indigenous parts in Fabia from 40 percent at present to 70 percent by 2012-13, and further to over 90 percent by 2015-16.

Japan crisis underscores need to cut dependence on foreign component sources The recent earthquakes and tsunami in Japan underscore the need for car and UV manufacturers in India to reduce their dependence on foreign sources for critical auto components. With the natural disasters disrupting supply of components from Japan, leading players like Toyota, Honda and Suzuki have announced global production cuts. The supply crisis has not immediately affected car production in India as manufacturers have inventories that will last 3-4 weeks, and as another 3-4 weeks of supplies are being shipped. But if component supplies do not resume for a prolonged period, domestic vehicle production will be disrupted until alternative sources are identified. To reduce dependence on overseas sources, and ensure steady supply of critical components without disruption, Indian component manufacturers will need to develop expertise to design and produce critical parts, independently and locally.

Localisation of critical parts to push Indian component makers to upgrade technical skills Developing technological expertise to design and manufacture critical auto parts will assume greater significance in the coming years. Currently, Indian car manufacturers import auto-grade steel and critical components like fuel injection and engine parts that require high precision and quality. They depend on foreign sources as Indian component manufacturers are not fully equipped to produce these components. However, a number of auto manufacturers have begun tying up with international auto component suppliers to invest in a manufacturing base in India for developing these critical components. Only if domestic auto component manufacturers demonstrate their technological expertise, will they be able to capitalise on the demand for critical components. (Please note that the views expressed here are those of CRISIL Research and not of CRISIL’s Ratings division. CRISIL Research operates independently of and does not have access to information obtained by CRISIL’s Ratings Division.)

16 - 30 April 2011

Auto Monitor

CORPORATE

Exel to focus on automotive, industrial segments in India Our Bureau Mumbai

xel Industries is planning to focus on the growing demand from automotive and engineering sectors in India. The automotive sector is witnessing several greenfield and brow nfield expansion programmes currently implemented in the country. The company is looking to close its fi scal year ending August this year with a turnover of around Euro 4.5 million (around `26 crore) and is looking to grow 30 to 50 percent over the next couple of years. The order book upto August this

year exceeds Euro six million (`32 crore) and may grow further with newer product introductions and increased customer engagement. Exel Industries was formed around October 2010 by merging businesses and assets of Kremlin Rexson and Sames Technologies in order to combine synergies and complementary product range in segments like automotive and general engineering. The company supplies precision spraying to agriculture, engineering and automotive segments under both ‘Sames’ and ‘Kremlin Rexson’ brands. ‘The combination of these brands (Kremlin Rexson and

Sames) is likely to be a value preposition due to their complementary product ranges and after-sales service capability available to customers of both the brands,’ said Managing Director and Chief Executive Officer, Exel Industries Jyotirmoy Banerjee. He added that the merger (to be effective by this month) and other restructuring exercises within the company were aimed at the company’s growing footprint in the automotive and engineering sectors in India. The growing eco-consciousness among vehicle and component manufacturers in India is likely to propel the demand for latest equipment for higher output and

reduced process related costs. Though the company derives around 70 percent of its revenues from the agriculture segment globally, it does not have any immediate plans to enter this segment in India. The high cost of products, fragmented land holdings and limited level of farm mechanisation limits the appeal of company’s products and solutions in agriculture segment in India. Exel Industries prov ides solutions to companies manufacturing exterior plastics including bumpers, door trims and interior plastics components including dashboards, clusters as well as passenger

The combination of Kremlin Rexson and Sames is likely to be a value preposition due to their complementary product ranges and after-sales service capability available to customers of both the brands. The merger and other restructuring exercises within the company are aimed at the company’s growing footprint in the automotive and engineering sectors in India

cars, vans, commercial vehicle manufacturers. The company is positioned as a product supplier and provides various equipment required in a paint booth and other assembly line products by OEMs. ‘We are in talks with OEMs and Tier 1 suppliers on a range of products for paint booth and other applications and these products are already under different stages of production trials,’ he said. ‘We are looking at developing our engagement with European and North American OEMs operating in India for increasing our volumes and complexity of product offerings for the automotive sector. Our engagement with Japanese OEMs in India may not grow very significantly due to the nature of their expansion and technology preferences that OEMs from Japan prefer,’ he elaborated. Vehicle manufacturers from North America and Europe tend to make large investments at one or two locations to gain economies of scale whereas Japanese manufacturers have been known to be conservative in terms of scale of manufacturing at single location and prefer to have scattered manufacturing base in several countries or regions. As a leading solutions provider, Exel Industries offers technical precision spraying in plant protection and material protection systems and equipment. It also provides solutions concerning development, production and marketing of equipment for handling a wide range of material viscosities for the automotive and industrial markets. The company provides a complete paint shop package to OEMs through its brands Kremlin, Sames and sister company API Technologies, which manufactures paint shop spray booths. Its research and development centre is focused on developing equipment and products for future market needs. The company has skilled manpowerintheareasofpumping, dosing, metering, regulation and spraying technologies as well as turnkey project management projects.

Auto Monitor

16 - 30 April 2011

NEW LAUNCHES

Koenigsegg Agera, Vyrus launched Our Bureau New Delhi

nterGlobe General Aviation, a subsidiary of InterGlobe Enterprises, under its new brand identity as InterGlobe Established Products or The Estd, has launched Koenigsegg Agera at `12.5 crore. The Estd is also representing custommade motorcycle brands Vyrus and Hollisters. The bikes come with a price-tag of around `20 lakh each. Agera is powered by a five litre bi-turbo V8 engine, which boasts

of a pulsating 1,115 horsepower, gains 100 km/hr speed in just 2.9 seconds. Koenigsegg sells around 18 cars every year out of its single manufacturing facility in Sweden. It tunes every car specifically for any particular country, after carefully studying the quality of fuel on offer in local conditions. ‘We sell 50 percent of our cars in the UK and US and one or two units in rest of the markets. We hope to sell one or two units of cars annually in India as well,’ Founder and CEO, Christian von Koenigsegg said. Volker

Sichler of Hollisters Motorcycles said that he sees India’s growth shaping into one of largest luxury markets in the world and this launch will make its presence felt here. Speaking on the occasion, Vy rus motobikes’ representative Ascanio Rodorigo stated, ‘We are very excited to come to India and be a part of the vibrant and changing lu x u r y env i ron ment.’ A l l three products will be sold on personal orders and no dedicated showrooms or outlet will be set up for reaching out to the customers.

Michael Boneham, President and Managing Director, and Nigel E Wark- Marketing Director-Ford India at the launch of New Fiesta Classic in Chennai

Bentley launches Continental GT Our Bureau New Delhi

B Nigel Harwood and Christian Koenigsegg with the Agera

Volkar Sichler with the Hollister

entley introduced a new version of its Continental GT luxury sedan, a fourseater and a two-door coupe, in India at a price of `1.9 crore (ex showSatya Bagla, MD, Exclusive Motors and Chris Buxton, room rate). ‘With the economy Regional Director (India, Middle East and Africa) growing, we expect customers which will help Bentley. We have to spend on super luxury cars received around ten bookings for the Continental GT,’ said Regional Director (India), Bentley, Chris Buxton. While it takes four to five months in making a Bentley the delivery period of Continental GT is seven months. The vehicle is powered by a 12-cylinder engine and can reach a top speed of 31 kph. The Continental GT Coupe, which is sold through two dealerships based in Delhi and Mumbai, has a flexfuel technology that enables the W12 engine of the vehicle to run on bioethanol (E85), petrol or any combination of the two.

Harley-Davidson India launches ‘Forty-Eight’

arley-Davidson recently launched Forty-Eight at `8.5 lakh (ex-showroom Delhi) adding to its expansive model portfolio in India. The model will be available across all the Harley-Davidson dealerships, in addition to the existing model line-up. The new Harley-Davidson Forty-Eight motorcycle is a factory custom in the legendary tradition of the hot rod Sportster line with the raw, elemental appeal of the Dark Custom bikes.

Featuring the classic ‘peanut’ fuel tank, the Forty-Eight backs up its bulldog appearance with the performance of its blacked out and polished rubber-mounted Evolution 1,200 cc V-twin engine. With Electronic Sequential Port Fuel Injection (ESPFI) and performance tuning with a broad torque curve, the Forty-Eight motorcycle delivers a powerfully responsive ride with smooth clutch effort. HarleyDavidson India commenced operations in August 2009 and appointed its fi rst dealership in July 2010. The Company currently offers 14 models in its 2011 lineup in India, available through its authorised dealerships.

Auto Monitor

AUTOMOTIVE TESTING

16 - 30 April 2011

FOCUS ON AUTOMOTIVE TESTING

AVL to manufacture Compact series and fuel metre in India Nabeel A Khan New Delhi

V L India, a leading i nst r u mentat ion a nd automotive test systems manufacturer will supply its Compact series and fuel metres from India to the world markets. It has already started assembling the former at its Gurgaon facility. The company has also tied up with a number state transport departments to provide software and instruments enabling to connect the network of Pollution Under Control (PUC) Certificate with one server at a central location to make it tamper proof. The company has been supplying the instruments globally including India from its plants in Austria, except the diagnostic equipment, which it manufactures here. But with the downturn in 2009, the company moved towards more cost effective and productive areas it has started production of these two equipment from India for the world market. The new equipment to be assembled is AVL Compact series with an investment of `100 crore just to change the logistic and other minor requirements as the production will be done in the existing facility at Gurgaon (NCR). The new AVL Compact series assembled in Gurgaon will be exported to the developing markets. However, the company claims to maintain the same technology and quality but at a

Shashi Singh, MD, AVL India

cheaper price by reducing some of the elements, which were not significant. Also, the company will continue to assemble Compact series in Austria also. ‘The company has started the production of the Compact range at the Gurgaon facility in January this year and will have its fi rst global launch in May and we expect to produce around 200 units annually from India,’ AVL India, Managing Director, Shashi Singh told Auto Monitor. The AVL Compact range to be assembled in India includes fuel-conditioning Compact, Indimicro Compact, santorin Compact, creta Compact, edacs Compact and services compac-

tion. The Compact is used for conditioning and conditioning the fuel temperature of the engines at the test beds. In FY12, it deems to attain one million euros revenue from the compact series, as the company plans to start small. The company plans to sell fi rst 20 units in India, so that they will do all the trouble shooting here in India before starting supply to the global market in September this year.. The company will also start manufacturing f uel metres in India by the end of 2011 with an investment of another `100 crore. The company will assemble the same at the existing facility in Gurgaon.

Nevertheless, as the business expands, it might be looking at opening a new setup. In order to maintain the quality, the company will source the same component for assembling the equipment here as well. The company will also be sourcing components from Indian manufacturers. AVL globally made a cumulative turnover of Euro 30 million this calendar year from its instrumentation business, which is expected to grow at 15 percent and its sees the major driving force the growth in automotive. ‘Because of the growth of the auto industry, the testing requirements of the OEMs as well as service setups are increasing, which will drive our growth as well.’ AVL India, COO, Mukul Ghanekar elaborated. But with introduction of new technologies like Hybrid and electrification, alternate fuel, the testing requirements are also changing and they are throwing up new challenges and this is something new in India as strengthening or tightening of the emission legislation requires more reliable and sophisticated instrument in terms of measuring lower values in more accurate manner. ‘Because of the new legislation, the demand of the measurement point for an engineer has grown out of proportion. Thus, you have to use a sophisticated method. We have the smoke metre, blowby metre, fuel and the oil consumption metre, which is attached to a

data acquisition to get to the right measure. We have automised the controlling and guiding of the format in which it can be used,’ Singh added. AVL has two divisions—an engine research and development division, where it does basic research mostly in Europe, while the second division of AVL is involved in instrumentation and test systems where it manufactures instruments mainly in Austria for engine research, development and testing. The company is also engaged in street level testing/diagnostic equipment where it has smoke metres and gas analysers for Pollution Under Control (PUC) Certificate. AVL, specifically in India, is working with transport departments in various parts of the country and has come out with software. The software networks all the PUC centres. As a result, the PUC certificates are issued from a central place to reduce chances of misuse. The company claims that the new system will be a tamper-proof and if in any case a loophole is found then the company will explore the option further. The company has implemented this software in Delhi in collaboration with the transport department two years ago and it was introduced in Bangalore in April this year. It is also planning to implement the software in other states very soon.

Moog gears up for major upgradation in automotive testing infrastructure in India Our Bureau Mumbai

oog offers a range of solutions in automotive testing area with focus on reliable data capture and minimising the need for different equipment for different testing requirements. The equipment is mainly used by OEMs and Tier I suppliers for structural rigidity testing and fatigue testing. Moog is hoping to make significant inroads in the OEM as well as testing laboratory (including ARAI or Automotive Research Association of India) market in India. ‘We are looking to enhance presence in the testing equipment market for automotive sector and are in process of launching a range of solutions from our global portfolio,’ said Country Manager, South Asia & India, Moog, Anurag Kashyap in a recent interaction with Auto Monitor. The major solutions include four-poster w ith hydrostatic actuators, MAST with Hexapod desig n s, su spen sion test rigs, component test rigs and hydraulic and electric actuators. The automotive testing equipment range comprises

a nd suspension design. Single and multi-axle test systems prov ide reliable measure for du rabi lity, vibration, s ho c k a nd performance evaluation a nd test i ng of a vehicle. Moog’s driving simulators enableshuman– in-the-loop testing capabi l it y for comfort, ergonom ics a nd v ir tua l testi ng. Moog’s kinematic a nd compliAnurag Kashyap, Country Manager, South Asia & India, Moog ance systems are targeted at t he OEMs ride and comfort test systems, for indicating stiffness and a hexapod design simulation k i nemat ic s mea su rement s table incorporating six elecusing force a nd displacetric actuators delivering 6-DOF ment cont rols. K inemat ics accelerations. The four-poster and Compliance (K&C) is used test system from the company for measuring the kinematis the key equipment for Noise ics and compliance properties Vibration and Harshness (NVH) of a vehicle’s suspension. The testing providing indicators for development of vehicle susstructural testing for chassis

pensions makes extensive use of CAD and CAE tools reducing the need of real-world prototypes. Later in the development process, the K&C test system is used for design verification, which makes it an important addition to the chassis development process. Additionally, the K&C test system is used for suspension tuning. The inf luence of changes in suspension parts characteristics are easily assessed with the K&C test system. A typical K&C system comprises hexapods, t rack width adjustment, load cells, optical position sensor system, control system and application software. Its key g loba l customers include BMW, Daimler, Spect r u m Te c h n o l o g i e s , Bridgestone, John Deere, Bosch, Arvin Meritor among automotive and agriculture equipment makers. Some of the Indian OEM customers include Tata Motors, Ashok Leyland and Mahindra & Mahindra. Its revenues in India stood around `50 crore last fiscal and it is hoping to notch up a compounded annual growth rate of around 25 percent over the next couple of years. ‘Our key focus is to eliminate the need for installing multi-

ple testing equipments at the customers’ end. Moreover we are looking to help customers minimise initial upfront investment in equipment in addition to making the equipment readily upgradable,’ elaborated Kashyap. He added that Moog is expecting a major upgradation in the testing environment with OEMs and research labs in India with several compact car development programs in process and planned over the next three to four years. Moog was established in 1951 to provide products and solutions in the motion control area. The company currently has a presence in sectors like aerospace, industrial engineering, space & defence, components and medical devices. It overall global revenues stood around $2.11 billion last year. The Indian operation was set up around 1990 in Bangalore. The company manufactures servo motors, and other solutions for industrial and defence applications in India, SA ARC and Middle Eastern countries. Its current employee st reng t h in India is around 550 people across three major areas: manufacturing, engineering services and sales & support.

Auto Monitor

AUTOMOTIVE TESTING

16 - 30 April 2011

ICAT to develop infrastructure related to HEV, EV Shambhavi Anand New Delhi

he International Centre for Automotive Technology (ICAT), set up under the National Automotive Testing and R&D Infrastructure Project (NATRiP) is planning to set up facilities related to EV and HEV testing and development, added to its current portfolio in its Manesar based R&D centre, said Director, ICAT, Dinesh Tyagi. ‘The growing demand on fossil fuels and environmental challenges are driving the automotive industry towards alternate propulsion technologies. Hybridisation and electrification of vehicles are the near term solutions, which are easily adaptable, provided enabling environment and infrastructure is made available,’ said Tyagi. While the government, in its Budget for 2011-12, is allocating resources for the setting up of test facilities under NATRIP, there exists a gap in the testing and developmental infrastructure planned under NATRIP for HEV and EV development. This needs to be addressed for the promotion hybrid and electric vehicles programme in India. ‘Realising this, we as a research and development and testing institute want to help in creating an infrastructure for these technologies,’ Tyagi added. The proposed facility will consist of e-Motor/ Controller/ Inverter/ Battery test and development infrastructure along with simulation capability for Hardware-in-Loop/ Softwarein-Loop. Besides this, the CAE facility related to HEV/ EV is also under consideration. Currently ICAT is doing a project on retro fitment of HEV kit on a Multi Utility Vehicle (MUV). ICAT is also in the process of acquiring knowledge from

Challenges of HEV, PHEV and EV:

• • • • • • •

Vehicle, primarily battery, cost, battery size, weight and life Standardisation of charging system components Range between battery recharges is small Time for recharging Emissions, including CO2, is still a major concern (except EV’s) Manufacturing capacity Electricity infrastructure

international research institutes in order to be able to act as technology partners to the Indian automotive companies. A delegation from ICAT visited eminent institutes in several countries to study the development of this technology. ICAT has a MoU with the Argonne National Laboratory (ANL), US, to bring out some knowledge base to India. ANL is one of Department of Energy’s (DOE) largest research facilities and is operated by the University of Chicago. They are developing a huge range of batteries from button cells to automotive batteries and have rich experience in terms of working with the leading automakers across the world. The centre currently acts as a technical partner of the automotive industry and undertakes activities like homologation and certification, developmental projects and testing and R&D projects. It has a wide range of testing facilities like Vehicle Evaluation Laboratory (VEL), engine test cell, vehicle test cell, mechanical, electrical and environmental lab, component evaluation lab, photometry lab, calibration lab, material testing among others. The centre

(Left) Pamela Tikku, Senior GM, ICAT; Engine Test Cell at ICAT

recently set up rapid prototyping facilities also. ‘India needs to draw strength from allied sectors to develop infrastructure for hybrid, electric vehicles’ ICAT recently organised a two-day workshop on the opportunities and challenges critical to the development of hybrid and electric vehicle technology. As a govt funded agency ICAT wanted to give a platform to Indian companies to interact with scientists of leading institutes who have been involved right from the basic research to adoption of these technologies for practical use. T he work shop t it led, ‘Electrifying for Greener Future’, discussed aspects related to EV and HEV technology like testing standards and regulations, battery technology and management, vehicle model architecture, system development and NVH. Some of the key speakers were scientists from institutes like Argonne National Laboratory, Department of Energy, USA, Ohio State University, AVL GRAZ, FEV among others. Stressing upon the increasing importance of EV and HEV technology, Director (West) TÜV Rheinland India, Hemant Desai

said, ‘The new electric mobility technology will be the hot topic in the automobile industry in the coming years. There is hardly a manufacturer that has not announced at least one vehicle for the forthcoming years.’ Chairman, KPIT Cummins, Ravi Pandit said that while in an ideal world full electric vehicles running on electric power supplied by renewable sources of energy would be the ultimate solution, over the next couple of decades, one needs to look at an intermediate solution. This would involve not only the design of a hybrid electric vehicle but also a consensus on roadmap for the development of charging infrastructure and technology for energy storage devices. The country would need to draw on its strengths from allied sectors such as IT to come up with the appropriate solutions. Discussing the roadblocks in adoption of HEV and EV technology on a commercial level Manager, Hybrid and System Design, AVL GRAZ, Dr Rainmund Ellinger iterated that electrification leads to a significantly increased diversification of powertrain systems and impacts not only the conventional powertrain components but many

Dinesh Tyagi, Director, ICAT

interfaces in the vehicle. The main challenge for the electrified powertrain is costs. Professor, Dept of Mechanical Engineering and Director, NSF I/UCRC Smart Vehicle Concepts Center, The Ohio State University, Dr Raj Singh added that with the advent of hybrid and electric vehicles, several new noise and vibration problems have emerged that pose different challenges. Reasons include new or additional components or sub-systems, different powertrain and driveline configurations, alternate operational modes, reduced masking noise from conventional internal combustion engines and the like. Modulated sounds from motors and gears issues create customer annoyance and psycho-acoustic perception issues even though the interior sound pressure levels could be relatively low. ‘By way of this workshop, we have desired to bring the global experience of HEVs and EVs to all the stakeholders in India. This will help identify gaps where we, as a nation, need to work and bridge the same in terms requisite testing and development facilities, incentives programmes, infrastructure requirements, regulations and policy framework,’ said Director, ICAT, Dinesh Tyagi.

Aimil to hasten new product development with delta ANALYSER test equipment T Murrali Chennai

umbai headquartered test equipment manufacturing and trading company Aimil is planning to focus on marketing test equipment such as ‘delta ANALYSER’ and ‘eol ANALYSER’ to help squeeze new product development time. Manufactured by Reilhofer KG in Germany, the test equipment cater to the requirements of the automotive industry in terms of reducing new product development cycle while also containing the cost of testing cycles. Typically, tests related to engines and transmissions take longer time as they are subjected to an endurance test cycle for few thousand hours. Nevertheless, the damages cannot be assessed in the conventional tests due to limitations on account of lack of timely inputs. Speaking to Auto Monitor, the National Manager (NVH) of Aimil, Hector Lobo said that with constant demand for shorter product development cycles, the early detection of damage is gaining

even more significance in testing engines and transmissions. Early deactivation of the test stand prevents total destruction of the test object and provides vital information on both the cause and the course of the damage. ‘The deltaAnalyser is developed specifically for fully automatic and continuous testing of transmissions and engines. It compares the characteristics saved at the beginning of the test with the contemporary characteristics during the test run. In addition it helps the users to evaluate the damages to prototype online during the test run.’ he said. According to user experiences the defects originally appearing as minimal will in time develop into something much more severe. In extreme cases, certain primitive defects can escalate further and might even destroy the engine or t ra nsm ission being tested eventually leaving engineers in lurch. Not only is the object under test very expensive but the entire test-rig can also experience considerable consequential damage. In such cases

it is almost impossible to identify the defects’ origin out of the material pieces. Therefore early detection helps avoid total destruction besides offering information on the cause of damage as well its course and progression, spot the design f law and contain costs through targeted rework. ‘The equipment connected to test benches can detect the damage location and the kind of damage during the test cycle. Besides, it documents the damage course and also detects its cause. Based on the evaluation software of the delta ANALYSER, it is possible to draw up precision diagnoses of the type of damage and the damage location,’ he said. On the eol-ANALYSER developed for end-of-line testing especially for engine, transmission and axles, Lobo said the equipment has a cent percent automation and self-adjusting feature to automatically study the reference tolerance limit for every engine, transmission and axles. Within a shortest cycle time it can compare the new engine, transmission or axles with the

reference limit and give credentials. The equipment can be used both in hot test and cold test conditions and can document the acoustic behaviour and its cause. Unlike the subjective test using human hearing, eol-A na lyser is completely objecEarly detection of defects help contain time and cost tive and therefore ever y transmistest equipment for every axis, sion manufactured can be tested which multiplies the time many instead of conventional sample folds. In addition, the company checking. This enables to visualwill support its automotive cusise production progress besides, tomers with torsional vibration accruing proofs of conformance analyser since NVH is increasto specification. ingly becoming vital for vehicle Aimil is also looking of offermanufacturers. ing CUBE Vibration Test System In the near future the compafor its customers in India. The ny is also planning to introduce equipment offers six degrees of XSENSOR for seat design comfort control and can accurately repand analysis, tyre tread analylicate virtually any vibration sis, telemetry sensors for taking environment with forces up to measurements wherever physi62 kilo Newton and a frequency cally not contactable. It will also range of 250 Hz. In the convenlaunch CSM Dataloggers for captional method, the product to be turing road profi ling data. tested is loaded to the vibration

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16 - 30 April 2011

AUTOMOTIVE TESTING

MathWorks launches C-code generator for prototyping and software integration T Murrali Chennai

n a bid to offer the flexibility to design engineers in automatically generating readable, portable programming languages like C and C++ code directly from MATLAB algorithms, MathWorks, the leading developer of mathematical computing software company, has launched MATLAB Coder. MATLAB, the language of technical computing, is the programming environment for algorithm development, data analysis, visualisation, and numeric computation. And the new coder can eliminate the need to manually translate the algorithm code into C and C++ code for prototyping, implementation, and software integration. This automation results in a faster, more efficient system-development workflow. These products enable engineers and scientists to accelerate the pace of discovery, innovation, and development in several industries including automotive, aerospace and electronics. The design of algorithmintensive elect ronic a nd communications systems typically begins with MATLAB. Its algorithms eventually need to be converted into C code for integration into the fi nal product. Manually converting to C language can take from days to weeks, besides, errors creep in eventually increasing the time to market of new products. Now design engineers can use the software to speed up develop-

The MATHLAB products enable engineers and scientists to accelerate the pace of discovery, innovation, and development in several industries including automotive, aerospace and electronics

ment tasks, such as fi xed-point design and prototyping, and then automatically generate C code with the new coder. The Technical Manager (Application Engineering and Training), MathWorks India, Prashant Rao told Auto Monitor that the new coder supports an extensive set of MATLAB language features for algorithm development, including builtin matrix math operators and dynamic array handling. Many operators, functions, and system objects are supported, including many advanced algorithms for DSP and communications. According to Rao, several embedded processors and digital signal processing do not support floating-point data types and only support fixed-point data types. ‘Typically, algorithm designers create their fi rst designs using floating-point data types. In a

traditional workflow, the task of manually recoding in C and C++ for fi nal implementation would include transitioning the data types from floating-point to fi xed-point. The fi xed-point toolbox provides fixed-point data types and arithmetic. The new coder supports fi xed-point arithmetic and can generate the language codes taking into account the fi xed-point data types declared in the software,’ he said. Generally the task of prototyping a design before moving to a fi nal implementation might require executing C and C++ code on a PC platform in a software test environment. It is the same case for executing the code on the fi nal implementation platform either in a software test environment or in a test harness. Based on the prototyping test results, changes are made in the design, which need to be then implemented in the software language code for further testing. Therefore iterations between the design and the language code are inevitable, he explained. The new coder accelerates the iterations by providing the capability of automatically generating the language code that is used for prototyping. It also generates the required functions, which can be executed directly from the software. This can be used to verify the behaviour of the generated code in the MATLAB environment. In addition, it also reduces the time and effort that needs to be spent on manually converting algorithms. Along with the introduction of the coder, MathWorks has also released Simulink Coder and Embedded Coder. These two new products simplify code generation for Simulink and Stateflow software users by combining capabilities previously available in multiple MathWorks offerings. Simulink is a graphical environment for simulation and model-based design of multi-domain dynamic and embedded systems. The new products incorporate the industry-proven ‘Real-Time Workshop’ technology, and offer full code generation support for rapid prototyping, real-time testing, and production embedded system implementation with built-in links to embedded development environments. ‘At times, system designs need to be tested in their natural environment pertaining to their operating frequency or response times. These tests are known as real-time tests. Rao iterated that, ‘Typically C and C++ code needs to be generated and executed in a real-time system for real-time testing. Simulink Coder provides a complete framework for executing the generated code in real time and incorporating it into an execution environment.’ On the production embedded system implementation he said the coder allows third-party embedded development environments to be incorporated into the build process. This enables the user to produce an executable programme for deployment on to an embedded system directly from the MATLAB and Simulink environment.

MATLAB Coder

Decoding The Future You have stated that the new MATLAB Coder is simple. Please explain how? MATLAB coder will have a sig n i f ic a nt impact on workfl ow and design processes for engineers in signal processing and communications. It accelerates the entiredevelopment rocess through Prashant Rao, Technical Manager, the automation MathWorks India of C or C++ code generation in the domain of expert or system designer, developer and algorithm testers. The Coder helps to automatically generate the C code, thereby speeding up the development tasks and simplifying the process for engineers who otherwise may take from days to weeks to manually convert MATLAB code to C. How does it help contain new product development time? The process also prevents design errors and consequently market delays due to model inaccuracies and modifications. Additionally, with the new coder, engineers can generate an algorithm in C code enabling them to trace the source of the error by using automatically generated code that has already been tested. In addition, it also generates compact, reusable libraries of soft-

ware components that can be called from other software such as custom simulation or test environments. This allows the algorithm developed with the MATLAB language to be used efficiently in a C or C++ based software environment. What are the other significant advantages? The new coder generates a standalone, portable and readable C as well as C++ codes from a user’s algorithm(s). Portability here refers to the advantage of the code being able to execute on any platform that has a C compiler, including embedded processors. This is achieved through built-in matrix math operators and dynamic array handlers, which support an extensive set of the language features for algorithm development. What are the productivity gains to users? Typically, our customers run these types of analysis. We do not have fi rst-hand data that we can share on behalf of our customers. Can you tell us about your current customer base in India and plans to promote these new products? We have approximately 300 corporates and about 1,000 technical education institutes as customers in India. Our major industries in India generally are no different from the other geographical locations. That is, our key industries in India are aerospace and defence, automotive, communications, electronics, and semiconductors. We expect these industries to continue to be the key focus of our marketing and sales efforts over the next three to five years for our products — existing and new. We also market technical computing and model-based designs, which transcend industries.

Auto Monitor

16 - 30 April 2011

AUTOMOTIVE TESTING

NK Minda Group opens design centre in Taiwan Nabeel A Khan New Delhi

anesar-based India’s one of the leading auto component manufacturers, NK Minda Group, has opened its design centre in Taiwan, at an investment of `3.5 crore with a view to increase its self reliance and enhance its business and quality of products. ‘We have set up this centre for designing and doing the manufacturing engineering for the automotive lightings. This is the fi rst of its kind that any Indian company has done. This is mainly to assure our self reliance in this product line so that we can collaborate and do some concrete engineering with the car and two wheeler manufacturers and give them a better product base on the design and engineering in

Taiwan.’ CMD, Minda Industries, NK Minda told Auto Monitor. The company has hired four engineers from Taiwan and four from India to supervise the centre. The company has made an initial investment of `3.5 crore mainly on software and the manpower. The company had a technical license in the past with a company called TYC and now it thought of procuring a license independantly. The company might also look at working as consultant for other manufacturers for giving them inputs on design but it will keep the main focus on its own ventures for another two years. ‘The Design Centre will give a necessary fi llip to the group’s expertise in optical and mechanical designing of automotive lamps, in addition to capitalising on the strategic advantage of Taiwan as an established and high

quality, yet cost effective, destination for tooling,’ Minda added. A mature auto lighting industry and quality supplier base, as well as proximity to China and Japan, makes Taiwan an ideal choice for establishing this centre. NK Minda Group claims to have an excellent rapport with the Taiwan supplier community, due to continuous resident engineer interaction. The centre in Taiwan will make designing cost competitive, while ensuring faster turnaround times, which will help the company to service the Indian automobile market proactively by creating their own capability in designing and simulation. In addition, the design centre will act as an interface between Taiwan suppliers and program managers, while also sourcing new suppliers for design, simulation, tooling, fi xtures, special purpose machines,

NK Minda, CMD, Minda Industries

raw material and other parts. ‘This new centre will offer be an opportunity to offer technical presentations to the all Indian OEMs in Taiwan to help expand our business in the country.’ NK Minda maintained.

NK Minda Group is a global player in automotive sector with manufacturing facilities in Indonesia and Vietnam and Offices in Japan, Europe and China. It has 25 manufacturing plants in India.

Cosmo turns its liaison office to local subsidiary Shambhavi Anand New Delhi

osmo Instruments, the Japanese manufacturer and service provider of measuring instruments has recently turned its liaison office based in Manesar (Haryana-NCR), India, to its local subsidiary, Cosmo Instruments India. The company is now looking forward to expand its base in the country. As a part of its expansion in India, and to provide better service to their clients based in the southern region of the country, Cosmo Instruments has set up an office in Bangalore. Hyundai and Toyota are the main customers that it caters to from the Bangalore office. The company also has office in Chennai and Pune. ‘Eventually, we will be setting up a base in Rudrapur to cater to the market in Haridwar. Currently we support the clients in Haridwar region from our Manesar office,’ Director, Cosmo Instruments India, Ramkumar Basnet said. Apart from the automotive clients, Cosmo Instruments manufactures testing equipment for food packaging as well as medical companies, but 90 percent of its business depends on the automotive clients. Some of its automotive clients are Maruti Suzuki, Toyota, Tata Motors, Minda Group, Mahindra and Mahindra, Ashok Leyland, Exide. Cosmo produces airflow testers and air leak testers. Air flow testers are used for flow measurement or large leak detection in components to detect blockages in components. While the air leak tester is an automated leak-testing device, which can detect any leak in components that must be air tight in order to prevent accidents. These air testers can be used for components of the fuel and lubrication system, engine, brake system and the powertrain. The testers are manufactured for a range of components depending on their size. And Cosmo has recently launched an economical Digital Pressure gauge (DP gauge) for smaller plastic components. Globally, Cosmo Instruments has presence in 12 countries including China, USA, Korea, Japan, Taiwan, Malaysia, Thailand, Indonesia, Vietnam, Brazil, Australia and England.

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AUTOMOTIVE TESTING

16 - 30 April 2011

Developing a Platform for Implementing Advanced Engine Control Systems E Corti and L Solieri

he challenge we took on was to develop a rapid prototyping platform to implement a real-time control system for an internal combustion engine that can handle all the tasks commonly managed by a ECU, such as engine position sensing, injection, and ignition actuations and interface with sensors to implement standard control and diagnostic strategies and the development of new advanced control algorithms. We developed a virtual ECU (VECU) for an internal combustion (IC) engine to serve as a flexible platform for implementing new engine control strategies. All the functionalities of a stock ECU had to be replicated and new capabilities had to be introduced such as malfunction generation, advanced combustion diagnosis, and experimental algorithms. Implementing the system required a modern approach using rapid control prototyping techniques. To shorten the development time, we used the NI (National Instruments) platform consisting of LabVIEW, LabVIEW FPGA, and LabVIEW Real-Time modules, which allow LabVIEW to generate the FPGA code and deploy to the real-time target.

System Driving Requirements Several driving requirements determine the system architecture: the platform has to work on different types of engines, either spark ignition (SI) or compression

ignition (CI); the engine position sensing should guarantee accuracy greater than 0.1 degrees; the injection timing accuracy has to be greater than 1 micrometer (µs); the spark advance position has to be accurate within 0.1 degrees; the injection pattern cannot be constrained so that single-point, multipoint, multijet, and full-group injection is allowed; and the controller computational power should allow the development of advanced control algorithms. The NI PXI-7831R R Series multifunction RIO module that we used monitors the crank angular position. The accurate position is determined by processing the angular reference signals from the most commonly used position sensors, either variable reluctance speed (VRS) or Hall effect, in any combination including the widely used 60-2 sensor wheel. The speed of the FPGA allows recognition of the tooth crossing within 125 ns of the physical transition. The main outputs of the system are the injection and ignition actuation signals – low power for amplification by external power drivers. All the actuators are driven independently from each other; we tested and successfully handled actuations for an eight-cylinder engine. The actuation parameters, such as injection duration and SA, are evaluated by the real-time side of the application on the NI PXI8186 controller once every cycle on each cylinder on a combustion basis. Then the calculations are queued to the FPGA for execution

with the requested angular and timing accuracy. The FPGA code also handles several protection procedures targeted to the safeguard of the engine components, ignition coils, and injectors. We extensively used the single-cycle timed-loop structure to ensure that we deterministically met our deadlines. With high-speed analogue I/O on the FPGA, we can implement a high-speed processing of the incylinder pressure signal, at 200 KHz maximum, to acquire information such as knock evaluation indexes, heat release rate, and MFB trends. Therefore, we can develop advanced control strategies aimed at maximizing the indicated mean effective pressure (IMEP), 50 percent MFB position control, and an aggressive SA strategy without exceeding the knock limit.

System layers We divided the system layout into three layers: FPGA, real time, and the GUI. The highest priority and time-critical tasks are on the lowest level — the FPGA level — and the lowest-priority functions are on the user interface. The GUI is remotely connected via Ethernet and its tasks are mainly low-frequency data logging and system management, including interactions with the real-time side for parameter changes such as the AFR target, SA, and malfunction induction. The low-level application runs on a Pharlap real-time OS and the FPGA, and the host GUI can be deployed virtually on any device:

Windows PCs, Linux PCs, or palmtops. To evaluate the effectiveness of the system, we carried out an extensive set of tests on a Maserati V8 3.2 litre turbocharged engine (AM585). We realised the engine phase and position is correctly determined with a 125 ns delay, we could achieve multiple independent injections with duration of 65 ms maximum and 1 µs accuracy, and the SOI is selectable with an accuracy exceeding 0.1 degrees. We also observed that the spark advance angular position has an accuracy better than 0.1 degrees; high-speed, real-time analogue signal processing is feasible; the computational power of the NI PXI-8186 allowed implementation of advanced control strategies and new algorithms; with open-loop and map-based control strategies the CPU load is below 20 percent at 6,000 rpm; and the FPGA used 90 percent of the gates on the 1M gate board. If the analogue capabilities of the board are not necessary, the digital NI PXI-7811R and PXI-7813R are cost-effective alternatives.

Future system modifications Our rapid control prototyping (RCP) system demonstrates the capabilities of NI hardware and software when used as the basis for implementing a virtual engine control unit (ECU), including the versatility of the FPGA in handling high-resolution and time-critical tasks such as the engine position

National Instruments

sensing and ignition and injection management. Using the fieldprogrammable gate array (FPGA) helped eliminate several external electronic circuits, mainly signal conditioning, and simplified the system layout. In addition, the LabVIEW development system with NI DAQ hardware supplied all the tools needed to quickly design and develop a working system. We can make small modifications to implement a similar system to a more compact and affordable NI CompactRIO platform. Performance will be at different levels, but it will provide the necessary computational power with the same flexibility and added portability, which we can use to conduct onboard programming and V-ECU algorithm tuning. (Study sourced from National Instruments. Case study authored by E Corti, Alma Automotive & L Solieri, University of Bologna)

Auto Monitor

16 - 30 April 2011

CORPORATE

Ruukki to introduce advanced steel technology in India Our Bureau Mumbai

uukki, a Finland based construction and engineering solutions provider, is looking to strengthen its presence in India with its range of high-strength, wear-resistant and special coated steels. ‘We supply steel products to OEMs operating in transportation, construction, engineering and electronics sectors. In India, our main customer segments are currently construction and mining machinery and we are looking to grow our customer base in these and other segments,’ said Senior Vice President, Ruukki Metals and Head, Ruukki steel

business sales, Kari Lehtinen in an email interview. The company’s product offering comprises special grade steel products including Raex, Optim and Litec. Raex is a high strength and wear resistant steel with applicability in buckets and containers manufacturing, wearing parts for the mining industry, platform structures among other applications. Optim is extra high strength steel grade offering excellent bendability, weldability and cutting properties required in frame structures for mobile vehicles and crane booms among other applications. Litec offers light weight and high strength solution to reduce body weight mainly for the automotive industry.

Kari Lehtinen, Sr VP, Ruukki Metals & Head, Ruukki steel business sales

‘We produce special steels and supply to OEMs, who in turn convert them into fi nished products. We manufacture various

special grade steels and other components for our customers in selected segments, but we do not provide fully built vehicles

India is becoming increasingly important for us. The construction equipment industry is growing rapidly here as India is on the fast development curve and presents an interesting opportunity for us or machines,’ added Lehtinen. He elaborated that Ruukki also focuses on research and development as well as technical support. Around 20 to 30 percent of Ruukki’s steel production is based on recycled material for achieving energy efficiency and reduce carbon dioxide emissions from steel production. Additionally, the heat and the steam generated in the production process are used on the work site as well as for centralised district heating system. Around 60 percent of the electricity needed at company’s Raahe works is produced using the process gases from the reduction of iron. According to company’s estimates, application of appropriate steel grade of Raex reduces the overall container weight by up to 800kg without compromising on strength and durability as compared to conventional metal manufacturing technolog y. Special steel products translate into more value with less material in customer applications. This means lighter vehicle structures, which save energy and reduce emissions as well as deliver longer life cycles in applications requiring wear-resistance. ‘We are focusing on the BRIC countries and India is becoming increasingly important for us. We plan to generate 50 percent of our consolidated net sales from the emerging markets. The construction equipment industry is growing rapidly here as India is on the fast development curve and presents an interesting opportunity for us,’ he added. Rautaruukki Corporation was established in 1960 in Finland and uses its marketing name Ruukki. It has operations in 27 countries and employs around 11,700 people. Its net sales in 2010 totalled Euro 2.4 billion and has a major presence in special grade steels in the Nordic countries and Baltic states. The company has both strong technological know how and modern manufacturing capacity. The company is aiming to grab around 60 percent of the marketshare in special steel business globally. In addition to Europe, it is pursuing aggressive growth opportunities in emerging markets such as China, Brazil, India and Turkey driven by the growth of construction and mining industries in these markets. In India the main customer segments comprises construction and mining machinery (buckets, tipper bodies) manufacturers including Telcon, Hyva and Tata Motors. The company is represented by ‘Steelforce’ in India.

16 - 30 April 2011

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CORPORATE

Bajaj Auto to spark lineup with two new motorcycle platforms Our Bureau Mumbai

ajaj Auto is working on two new motorcycle platforms, which will be sold under the Pulsar and the Discover brand with several variants from those currently available. The company is likely to discontinue many models that are not contributing to current volumes in the current lineups. It is looking to grab around 20 percent marketshare globally in motorcycle segment over the next three to four years. The gain in the marketshare would come from higher domestic sales and exports of motorcycles. ‘It makes much more sense to grab a higher share in an existing market segment rather than enter a new market (scooters) where we do not enjoy any particular advantage and would fi nd it difficult to build up presence,’ said Managing Director, Bajaj Auto, Rajiv Bajaj in a recent interaction with media at the launch of Discover 125. Bajaj is hoping to notch up volumes of around 150,000 units for the Discover brand including the newly launched 125 cc as opposed to current volumes of around 110,000 units for the Discover 100 (around 80,000 units per month) and Discover 150 (around 30,000 units per month). The company’s overall volumes are likely to be in the range of around 3.82 million units for the last fiscal as against its target of four million units though the company is yet to collate the fi nal volume figures. The company is targeting a growth of around 20 percent in domestic, exports of two and three wheelers as well as spare parts business in the current fi scal. The spare parts business would likely grow by 20 odd percent to touch `1,500 crore in the current fiscal. ‘Our current capacity is around fi ve million units per annum which is sufficient to achieve our growth objectives over the next two to three years,’ said Bajaj. He elaborated that new motorcycle platforms which would also be branded Pulsar and Discover targeted at existing and new customer segments and would be launched this calendar year. The company is unlikely to opt for a new brand for the new motorcycle platforms as Pulsar and Discover have adequate brand recall among customers. ‘We are in the process of identifying gaps in the existing product lineup and would also discontinue certain models in the Pulsar and Discover range,’ said President, Motorcycle Business, Bajaj Auto, S Sridhar. The company is likely to tap its existing setup in Aurangabad for four-wheeler production in order to gain from ancillaries, aggregates and supply infrastructure in and around Aurangabad. The prototype of the four-wheeler has already been tested and its commercial launch is expected next year. The four-wheeler is expected to deliver on the commitment of 30kmpl fuel efficiency and is likely to be priced around `three lakh. Bajaj Auto would be responsible for production and logistics while responsibility for

sales, marketing and distribution would lie with Renault. Bajaj added that the plans for launching KTM/Bajaj co-branded bikes in the Indian market are on track and one of the models jointly developed by two partners or from KTM’s stable is likely to be launched by this year-end. Bajaj Auto has already manufactured and dispatched around 2,000 units of the Duke 125 to KTM for catering to the European market. KTM has indicated confirmed orders of around 5,000 units for these highend 15 HP motorcycles costing around Euro 4,000 and is likely to place an order for additional units in the weeks to come. ‘KTM is a premium bike manufacturer and

its models may not have a big market in India but these motorcycles along with the ‘KTM’ brand has recollections in key markets like Brazil, Argentina and Indonesia helping us to get an entry and compete with entrenched Japanese manufacturers,’ elaborated Bajaj. KTM manufactures around 65,000 units per annum and has an established market in Austria, Germany and many other East European countries. Bajaj Auto has already set up its second manufacturing facility in Pantnagar taking its combined manufacturing capacity from two facilities in Uttarakhand to around 1.5 million units per annum. Bajaj Auto is in discus-

Rajiv Bajaj, MD, Bajaj Auto & S Sridhar, President, Motorcycle Business, Bajaj Auto with the Discover 125 priced at `45,500 (Ex-Mumbai)

sion with its partner Kawasaki for launching an additional model in India, but is waiting for clarifications on CBU (Completely Built

Units) duty structure from the Japanese partner before importing the next consignment of Kawasaki Ninjas.

16 - 30 April 2011

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CORPORATE

Xenos plans second manufacturing plant T Murrali Chennai

enos Technologies, part of the Coimbatore based auto component major Pricol, is planning to set up a manufacturing facility in Bangalore to manufacture a range of accessories. This will be the company’s second manufacturing facility in the country. Xenos is in to a host of automobile accessories including CD/DVD head units, amplifiers, speakers, LCD screens, reverse parking systems, vehicle security systems, power windows, car care products and car perfumes. CEO of Xenos Raghvendra Singh said, ‘We are proposing to open our second facility in Bangalore. This will be used for manufacturing audio and video head units.’ The company

Mahindra First Choice 2S in Chennai Our Bureau Chennai

ahindra First Choice Wheels, a multi-brand pre-owned car company, has further expanded its Southern footprint with the launch of its first ‘2S’ SuperStore in Chennai. At the inauguration, Vice-Chairman and MD, M&M, Anand Mahindra, said ‘The ‘2S’ superstore concept would provide end-to-end eco-system. When his company entered the after-market sector in 2008, he said the intention was to create a business eco-system in the multi-brand pre-owned car space, which would replicate the eco-system for new cars. The ‘2S’ format was a further step in that direction.

Anand Mahindra, VC & MD, M&M handing the keys to a customer

President (Group HR and AfterMarket) and Member of the Group Executive Board, Mahindra and Mahindra, Rajeev Dubey, stated that this format was part of the company’s strategy to leverage synergies between its sales and service businesses, thereby creating greater value for the customer. The company has opened 151 stores across the country, of which 133 are franchisees. The company is planning to double the number of stores to 300 in two years. Dubey said that the pre-owned car market in Chennai is growing at a rapid rate with sales of about 5,500 cars a month. Mahindra First Choice aims to sell over 10,000 cars in Chennai this year. The showroom will display a wide range of cars across segments. Services offered will include purchase and sale of pre-owned cars, car fi nance and insurance, a commitment card, which will cover both 24X7 roadside assistance across the country, as well as a conditional warranty on preowned cars, accessories and RTO transfer. It will also incorporate a shop floor consisting of 13 bays with the capacity to service 800 vehicles per month.

makes the entire range of electronic vehicle security systems at Pricol’s plant in Rudrapur. Xenos has been formed essentially to market and service a range of high-end automotive accessories. Promoted by the Chairman & Managing Director of Pricol Group, Vijay Mohan, the company covers the vital markets in the country through its offices spread across 18 states. The company has a wide range of auto accessories in the market and plans to launch a spate of new products in the coming months. ‘These products will re-defi ne the quality and price benchmarks in the country, and take the competition directly to the established global brands here,’ stated Singh. The company is the national distributor for the entire Turtle Wax range of car care products. ‘Aside

from Turtle Wax, we currently do not distribute products for any other companies, other than our own,’ he said. In addition to selling products through distributors, the company also has two showrooms — Xenos Auto Boutiques in Chennai and Coimbatore. It will be opening the third boutique this month at Shivalik (junction of Panchsheel and Malviya Nagar) in New Delhi. In addition it plans to launch at least three more boutiques in FY 12. Asked if the company faces any problems with counterfeit products, he said, ‘Fortunately we have not faced any significant problems on account of counterfeit products, aside from a few isolated incidents. The objective of Xenos Technologies is to bridge the wide gap between the requirements and need of the Indian automotive cus-

tomers and technologies available worldwide. In addition to supplying its products to distributors and other sales channels, the company also supplies directly to OEMs including Ford. It has also been approved by few other vehicle manufacturers including Hyundai

for DVD head unit and speakers. ‘I feel we complement, rather than compete with the OEMs. Manufacturers achieve maximum sales on their stripped down versions as their customers choose to have the various add-ons fitted separately,’ he added.

Auto Monitor

16 - 30 April 2011

STUDY

Second-hand car market at inﬂux point

Growth in second-hand car market Just like the new car market, sma l l ca rs dominate second-hand car market as well, accounting for around 60-70 percent of the market, with car

go significant wear and tear making its resale value insignificant. Also utility vehicles offer relatively low fuel economy and the households that can afford operating the vehicle on low fuel economy would typically prefer to own a new utility vehicle.

Unorganised segment continue to dominate The second-hand car market has been dominated by the unorganised segment since inception till today, contributing around 88-90 percent of second-hand car sales. As buy-

Organised market gaining momentum Huge potential of secondhand car market had inf luenced almost all major passenger car OEMs to venture in used car business. Maruti True Value and Mahindra First Choice were among the early entrants in this market. Initially, second-hand car business was used as a tool by the OEMs to sell their own vehicles by offering attractive

Proportion of organised and unorganised segment in Proportion of organised and un organised used car market*

segment in used car market 10%

90%

Organised segment

Unorganised segment

ing second-hand cars involves greater degree of trust in terms of k now ing genuineness of ownership or title, quality of the spare parts, transparency in any charges relating to accident etc, the buyers prefer to purchase from known sellers through direct personal contacts. This has led to evolution of localised second-hand car brokers. It is estimated that around half of used car deals

exchange offers. However, as the awareness about the organised second-hand car market has increased the response of the buyers have been very encouraging. That has led OEMs to consider used car business as high potential business.

• •

True Value (Maruti Suzuki) First Choice (Mahindra, in joint venture with HDFC and Sah & Sanghi) Assured (Ford) Advantage (Hyundai) Auto Terrace (Honda)

2.0

1.5

Online portals is a fast emerging concept

1.0

0.5

models like Maruti 800, Zen, Alto, Wagon R, Hyundai Santro and Tata Indica are sold the most. In the mid-size segment, Honda Cit y, Maruti Suzuk i Esteem and Hyundai Accent are the most popular cars. CARE Research believes that the popular models in new car market, commands a higher buyer preference in second-hand car market also. However, as compared to passenger cars, the second-hand market for utility segment is negligible. Being, primarily used for commercial purposes utility vehicles under-

FY05

A key challenge: Increasing demand for low cost cars The pre-owned car market faces competition from new car market as well as relishes benefits from it. New launches in the low cost segment like mini and entry level compact take away many aspirants from the used car market. It also has a negative impact on the resale price of the pre-owned vehicles. A similar scenario was observed during the launch of Tata Nano. However, new launches in higher-end mid-size, executive and premium segment and owners upgrading to these cars by selling their existing cars, fuels growth in the secondhand car market.

FY10

happens through such local brokers.

Brokers are critical link in the value chain Local brokers are the most important party in value chain to unorganised segment. CARE Research believes that a medium size broker closes nearly 8-10 models per month and charges commission around 2-3 percent per deal from both buyer and seller. These brokers also provide services like insurance, registration of transfer of title in the Regional Transport

CARE Research believes second-hand car market is at influx point. It estimates, the size of second-hand car market to increase at a CAGR of around 18-20 percent in next five years growing from 1.8 million in FY10 to around 3.8 million by FY15. Rising income levels, huge base of two-wheeler owners upgrading to used cars and healthy fi nancing scenario would be key factors that would determine

Major used car business ventures of the OEMs are listed below:

• • •

FY00

deal value is financed depending upon the profile of the buyer and usage of a car. However, these players have restricted t hemselves to f ina nce used cars purchased through organised segment. The rate of interest for pre-owned car finance is around 300-400 basis points higher than that for new car finance.

Second-hand car market to grow at CAGR of 18-20 percent

Growth in the second hand car market* Growth in second hand car market

Units (in mn)

Office (RTO). In some cases these brokers also own workshops, whereby they provide refurbishment of used car.

Online portals are a fast emerging concept in used passenger car market. Vast coverage has attracted many buyers and sellers to register their cars through these portals. However, the conversion ratio through these portal are very low as the trust factor between buyer and seller is missing which is very important criteria in any used car market.

Financing scenario The entry of organised players in the second-hand car market has attracted many financial institutions. Some of t he major private a nd public sector banks and financia l inst it ut ions cur rent ly f i na nce second-ha nd ca r pu rcha ses, i nclude Kota k Mahindra Prime, HDFC Bank, ICICI Bank, State Bank of India and Punjab National Bank. Currently, the maximum tenure offered for loans is 60 months and up to 70-85 percent of the

Just like the new car market, small cars dominate the secondhand market as well, accounting for around 60-70 percent of the market, with models like Maruti 800, Zen, Wagon R, Hyundai Santro and Tata Indica being most popular. In the mid-size segment, Honda City, Maruti Esteem and Hyundai Accent are very popular. CARE Research believes that the popular models in new car market also commands higher buyer preference in the second-hand market.

growth in domestic secondhand car market. CARE Research also foresees that the organised segment to dominate industry growth. With increasing number of OEMs venturing into secondhand car market the share of organised segment would rise to substantial 30-35 percent in next five year period.

*Source: CARE Research estimates

Estimated growth in used car market*

Estimated growth in used car market 4.0 3.5 3.0

Units (in mn)

he second-hand car market has been existence in India since inception. Two decades back, a car was considered a luxury commodity which people from rich class only could afford. The second-hand car was the only economical way to buy a car for aspirers from middle class population. During those times, the prices of the second-hand cars was also on higher side as compared to recent period and unavailability fi nancing options made owing a second-hand car an expensive prospects as well. However, during the last decade, the rising income levels, easy availability of fi nance and wide model offerings at competitive pricing have spurted the demand of new car market. Consequently, increasing affordability has also resulted in drastic reduction in holding period of the car enabling sharp spurt in the second-hand car market. The size of second-hand car market has increased more than six folds. The second-hand car market has almost erupted in last 8-10 years. CARE Research estimates, the size of second-hand car market has increased at a CAGR (Compound A nnua l Grow th Rate) of around 20 percent during past one decade from 0.3 million units in FY2000 to around 1.8 million units in FY2010, scaling it up to the levels of new ca r sa les. Increasing urbanisation, rising income levels have also raised the aspiration of Indian middle class to purchase first vehicle as a car or to upgrade from twowheeler to a car, even if it is a second-hand car.

2.5 2.0 1.5 1.0 0.5 FY10

FY15P

share of organised Estimated Estimated share of organised market by market FY15* by FY15 Second car market size (3.8 mn units)

Organised segment (i.e. 35%)

16 - 30 April 2011

JCB India launches BSIII, engines

onstruction Equipment major JCB India Ltd, announced the launch of fuel efficient, BSIII, 16-valve diesel engine, ecoMAX to power its equipment range progressively. ‘We will start powering our backhoe 3DX with JCB engines and many other models in our range will follow. High fuel efficiency and low maintenance cost of these engines will make machines powered with this engine give better rate of return to customers. These will come in the range of 76 hp to 150 hp and naturally aspirated, turbocharged or common rail,’ said Managing Director and CEO, JCB India, Vipin Sondhi. The manufacturing of BSIII engines commenced from 1 April, 2011 at JCB India’s facility in Ballabgarh. An investment of `3000 crore was made and around 40,000 engines will be produced in a year. The ecoMAx will also be exported to Indonesia as a part of the JCB machines.

Maruti recalls 13,157 diesel cars

aruti Suzuki India recently announced that it will inspect the ‘Connecting Rod Bolt’ for 13,157 units of Swift Dzire (4,505 cars), Swift (6,841 cars) and Ritz (1,811 cars) diesel cars with engines manufactured between 13 November, 2010 and 4 December, 2010. If the connecting rod bolt is defective, the company will replace the component at no cost. No other vehicles in the range or the vehicles exported by Maruti Suzuki are impacted. Maruti Suzuki dealers are expected to contact owners of the cars. The new part has been despatched to the dealer workshops.

Dassault honours Tata Technologies

ata Technologies has been honoured with the Sales Excellence Award by Dassault Systèmes at the Asia Pacific South Sales Kick off 2011 held in Thailand in January 2011. The company won an award for ‘Outstanding Performance and Exceptional Commitment to Win Business and Dassault Systèmes references in New Industries Leveraging Dassault Systèmes Brand Initiatives for Year 2010’ Tata Technologies is a global leader in Engineering Services Outsourcing (ESO), Enterprise Solutions services and Product Lifecycle Management (PLM) to the world’s leading automotive and aerospace manufacturers and their suppliers. Vice President PLM Solutions, Asia-Pacific for Tata Technologies, Wishwas Julka said, ‘This award is a testimony of Tata Technologies team’s relentless effort and commitment towards organisation’s growth focusing on better business results while simultaneously expanding the footprints in new industrial domains. I want to congratulate each of our team members for their hard work. Everyone is excited and thrilled to have won this recognition and look forward to performing even better in the coming year.’

CORPORATE

Auto Monitor

ALL, Nissan unveils their ﬁrst LCV for India

shok L eyla nd a nd Nissan Motor Company unveiled their fi rst Light Commercial Vehicle (LCV) — the Ashok Leyland DOST recently. The product will be launched in the market, in the second quarter of FY 2011-2012. The ‘Ashok Leyland DOST’ will be produced in Ashok Leyland’s Hosur manufacturing plant. Powered by a specially-developed, 55 hp high-torque, 3-c yl i nder, t u rbo-cha rged Common Rail Diesel engine, the vehicle has a payload capacity of 1.25 tonnes. Reflecting the growing expectations of the Indian LCV customer, the Ashok Leyland DOST will be available in three versions: a base version with manual steering, a mid-version with power steering and a higher version, which will have dual tone interiors, power steering and AC.

The vehicle will be available in both BSIII and BSIV versions. Mirroring the evolution of the entire Indian car and light truck market, the small commercial vehicle segment (vehicles less than 3.5 tonnes) has been witnessing a perceptible upward shift in terms of features, performance and payload and the Ashok Leyland DOST has been positioned as a contemporary, powerful yet highly efficient product. With the hub-and-spoke model fast gaining ground, it is well-placed to ride the robust demand for vehicles making last-mile deliveries. The Ashok Leyland DOST will be available through a newly developed LCV Exclusive network to give customers a new level of experience. ‘The Indian market is rapidly evolving and customer expectations are growing. We believe

that the LCV segment is ready for a substantial upgradation of products that yet offer low cost of ownership. The Ashok Leyland DOST with its carefully calibrated design and features, attempts to offer a new level of experience to the Indian customer,’ V Sumantran, Chairman Nissan ALL Powertain, and stated Executive Vice Andy Palmer, Senior VP Nissan unveil DOST Chairman, Hinduja Ashok Leyland Nissan Vehicles, Automotive and Chairman, Dr Andy Palmer said, ‘The prodNissa n A shok L eyla nd uct blends the best in terms of Powertrain, Dr V Sumantran. ‘Its Japanese engineering from design reflects the philosophy of Nissan, with local relevance that both partners: blending the long Ashok Leyland brings to the table. traditions of quality and comIt represents a very attractive fort of Nissan with the proven value proposition to the small record of rugged reliability and and medium businesses that it is fuel efficiency of Ashok Leyland,’ targeted at and we are confident he elaborated. that it will fi nd wide acceptance Senior Vice-President, Nissan when launched.’ Motor Company and Chairman,

16 - 30 April 2011

Auto Monitor

CORPORATE

Navteq introduces line-ﬁt navigation with Tata Aria Nabeel A Khan New Delhi

avteq, a leading global maps provider which is owned by Finnish company, Nokia, is expecting a huge opportunity in the Indian automotive market and in the process of collborating with the major OEMs in the country. The company is known to have fi rst introduced Personal Navigation Devices (PND) with Volkswagen in India and has entered into line-fit navigation system with Tata Aria recently. ‘We are happy to be associated with Tata Motors in India’s fi rst line-fit navigation system. Working closely with Tata Motors starting with Tata Aria, we aim to

Cognex expands Visionpro software capabilities

og ne x C or p or at ion announced the launch of version 2.1 of VisionPro Surface inspection software for flat products. The release significantly expands the capabilities of VisionPro Surface from defect detection and classification on continuous products to automated inspection of sheeted products and gauging of crossweb and downweb features on both continuous and sheeted products. Cognex Corporation designs, develops, manufactures and markets machine vision and industrial ID systems, or devices that can ‘see’. Cognex vision and ID systems are used around the world for a wide range of inspection, identification and guidance applications throughout the manufacturing and distribution process. VisionPro Surface is an easyto-use, self-learning inspection and gauging software that is used to find critical surface defects that affect product quality or process efficiency. Unlike traditional surface inspection technologies that use signal processing to detect defects, VisionPro Surface works by monitoring the visual appearance of t he materia l. The easy-to-use setup tools and visual user interface enable users at all levels to automatically inspect their products. The advanced defect detection tools, classification algorithms, and gauging tools enable users to easily address a broad variety of f lat product inspection applications. VisionPro Surface, version 2.1, now offers four different platforms that can be selected depending on the application to be solved, including the new VisionPro Surface Sheeting. VisionPro Surface Sheeting a l lows ma nu fact u rers of sheeted and continuous f lat products to grade sheets, measure sheet geometry, and automatically detect sheet edges reliably and accurately using technology from the recognised leader in the machine vision industry,’ said Executive Vice President and Business Unit Manager for Vision Software, Dr Markku Jaaskelainen.

drive the widespread adoption of digital navigation for all drivers in the country. With the overwhelming response from consumers, we are now even more committed to the India market’, Director, Sales, Navteq India, Rajat Tandon told Auto Monitor. Navigon is the application partner for Aria on the Delphi head units and Navteq has been in alliance with Garmin for aftermarket, where it offers PNDs. The company said it has acquired a space in the aftermarket and PND domain but for line-fit, it requires lots of detailing that eventually takes time. The company will very soon announce the launch of additional line-fit navigation systems with other OEMs in India.

The company claims to have started building maps in India in 2006. It has done research with the help of a qualified team of 1,200 and launched Indian operation in 2008. Talking about the usability of the product in India, Rajat said ‘During our research, we have observed very interesting facts that in India, very few people use print map and everyone stops to ask for directions, and in this process close to 6.7 percent of the time is lost to locate a place.’ However Navteq’s application is not only for maps but also contains a number of other features that can monitor mileage, music among many other tasks. Navteq claims to have navigable maps of 84 countries across 6 continents.

The company has invested consistently in building its map of India. ‘We have not just done the survey through satellite because that in itself could not provide the minute detail. For instance, if there is a flyover then where is the u-turn from under it, or whether there is a cut at any end to take a turn. Apart from that, we also provide video footage which shows the actually visual of the spot on the screen inside the vehicles,’ Tandon asserted. The company has included all the cities or places having a population of over 50,000 apart from some of the places of interest having even less population, but are otherwise important. The Chicago-based compa-

ny was founded in 1985 and has more than 5,400 employees located in 214 offices in 49 countries. Navteq in India claims to cover over 200 attributes where field survey engineers have gone to the roads. Apart from roads they also cover junctions in their surveys. Moreover, the visual content is provided in 3D form. If a user goes to India Gate he/she will be able to see a 3D replica of India Gate on the screen. Navteq started working in maps domain in 1985, and taken the technology that was initially strictly used by military to the common people. Today the company is sought by leading brands like BMW, Toyota, Honda, JLR, Audi, Skoda, Ford and GM.

Auto Monitor

16 - 30 April 2011

EVENTS

Automechanika Istanbul success signals economic revival T Murrali Istanbul

Automechanika Istanbul 2011 was supported by the following industry associations:

• • •

• Photo: T Murrali

he sixth edition of the biennial event Automechanika Istanbul 2011 witnessed more than 35,000 visitors from over 100 countries across the world seeking components, services and manufacturing options for the automotive industry. This clearly sends the message that the economies that were affected due to global recession beginning 2008 is recuperating faster especially when it comes to the automotive industry. Organised by Messe Frankfurt Istanbul (MFI) and Hanover-Messe International Istanbul (HMII), the four-day show beginning from 7 April at the TUYAP Fair Centre in Istanbul had close to 1,100 exhibitors from 38 countries showcasing latest products, technologies and future trends for the automotive industry especially on manufacturing, distribution and repair. Serbia is the partner country for the event and it is for the first time that the country is participating under such status in an international trade fair. The country hopes that the Automechanika Istanbul 2011 would divert the spotlight on the dynamically developing Serbian automotive industry in a new way. The exhibition was inaugurated jointly by the General

(L-R) Alexander Kuhnel, GM, Hanover Messe International Istanbul; Hasan Koktas, President of the Energy Market regulatory Agency, Turkey (EPDK); Taner Yeldiz, Minister for Energy Turkey & Mustafa Akinci, GM, Energy Fairs Turkey cutting the ribbon to inaugurate the Automechanika Istanbul 2011 trade fair

Manager, HMII, Alexander Kuhnel, the President of the Energy Market Regulatory Agency in Turkey (EPDK), Hasan Koktas, and the Minister for Energy in Turkey, Taner Yeldiz, the General Manager for Energy Fairs Turkey, Mustafa Akinci. At the inaugural ceremony, the Managing Director of MFI, Aleksandar Medjedovic said the

Visitors thronging the stalls at the biennial event

Aleksandar Medjedovic, MD, Messe Frankfurt Istanbul

exposition grew in terms of both the participants and visitors. About 820 exhibitors participated in the last edition held in 2009. The exposition featured all product groups related to automotive manufacturing and distribution and at the same time offered a wide range of aftermarket and repair issues. Another advantage for the visitors was the Petroleum Istanbul 2011 fair, which was organised in parallel at the same venue. Together with the entire energy and petroleum industry spectrum, both events formed a regional milestone for the Turkish and regional automotive industries. Medjedovic and Kuhnel declared that the Automechanika Istanbul fair would go beyond borders in many ways as it offered entry and expansion opportunities into the Turkish market. Besides, it gave the participants and visitors several possibilities to expand their businesses

billion of foreign investment and has created some 30,000 jobs. The forecast for the future is positive and the interest in the Serbian market is growing.

into regions and markets beyond Turkey. Due to increased participants, MFI has expanded to eight halls, as against five in the previous edition. Turkish companies dominated the participant list with 615 while China is the largest amongst foreign participants occupying 198 stalls growing cent percent over last edition. Germany had 23 exhibitors followed by Italy with 24, Serbia with 10, India with eight, four from the US and two from Iran. Turkish economy has been growing significantly for the last few years. The country ended the calendar 2010 with about nine percent growth in GDP. Medjedovic said, ‘The Turkish auto industry is exploding. With our Automechanika Istanbul fair we are offering a successful platform to consolidate, strengthen and expand business opportunities for all participants of the fair.’ The Turkish market is dem-

Alexander Kuhnel, GM, Hanover Messe International Istanbul

What is the connect with the automotive industry? The Serbian automotive industry is strategically important for the country and has started to attract international manufacturers and investors, in the area of vehicle manufacturing as well as in the supply industry. Since the year 2000, the automotive industry has brought Euro 1.3

You said Turkish automotive market is exploding. Can you elaborate? Turkey is evolving as a market for both, price conscious and quality oriented products. And this is because of the growing population with a substantial portion being young people who are willing to spend more. The car population is largely consisting of top-end vehicles demanding quality aftermarket services and there is no compromise on quality. Besides, the Turkish government is supporting the automobile industry very well. At the recently unveiled auto policy, the government has a set target turnover of $70 billion by 2023 from $30 billion now. More than 80 percent of the requirements of the OEMs in Turkey are catered to by the domestic component industry.

• • •

•

onstrated by more than 15 OEMs including Ford, Renault, Fiat, Toyota, Hyundai, Honda, Mercedes, MAN, Isuzu and Peugeot. The country’s economy weathered the global economic crisis better than most of the European and American nations, he iterated. A high-profiled conference, Automechanika Academy featured E-mobility and E-cars as this year’s theme. The show also witnessed the presence of buyer delegations from Bulgaria, Serbia, Syria, Lebanon, Jordan, Singapore, and the US. It had a special buyer delegation program with participants from 64 countries organised by the Turkish Under Secretariat of Foreign Trade.

are promoting the automotive aftermarket, they are with us. We are combining our forces especially for the benefit of the visitors. What are the key drivers for growth of Automechanika Istanbul? The key drivers are awareness of people to maintain their vehicles better. Though the crisis is over, not all of them are investing in new vehicles. Therefore the aftermarket has been growing exponentially while the quality is also getting better. I think on an average, a car is made of about 5,000 parts and we have only about 1,000 and odd participants. That means we still have about 4,000 potential participants. We are working hard on that.

What are the benefits of being a partner country? Being a partner country of a large international fair of this kind exposes the Serbian industry to many contacts and development possibilities. The Serbian parts and components industry is present at the fair through an official national pavilion, organised by the Serbian Chamber of Commerce. Ten Serbian companies are exhibiting at the fair showcasing what their domestic automotive industry produces. What is the objective of making Serbia as partner country? The decision to declare Serbia as the partner country is in line with the rapidly developing trade ties between Serbia and Turkey, as well as with many countries in the region. The automotive industries of Serbia and Turkey show a high potential for co-operation and for joint investments.

•

Automotive Aftermarket Suppliers Association (AASA) Automotive Parts Remanufacturers Association (APRA) Federal Association of the Manufacturers and Importers of Automobile Service Equipment (Germany) ASA European Garage Equipment Association (Belgium) EGEA Heavy Duty Manufacturers Alliance Motor Equipment Manufacturers Association (MEMA) Overseas Automotive Council (OAC) Association of Automotive Parts and Components Manufacturers in Turkey (TAYSAD) German Federation for Motor Trade and Repairs (ZDK)

Automechanika Istanbul 2011 saw about 33 percent increase in exhibitors and 50 percent increase in space. What does this mean to you as a joint organiser? Messe Frankfurt organises the international part while Hanover Messe International manages the domestic part of the event. The growth only signifies that we are on the right path and caring for the right topic such as spare parts, service etc. Turkey is the seventh largest auto maker and the largest manufacturer of buses in Europe. This implies that there is a big potential and we are only fulfi lling the need. What is the reason to partner with Petroleum Istanbul? This is a separate show; however, there is a synergy between the automotive aftermarket and petroleum industry. Whenever we

Could you tell us about the growth of participants from the domestic and international arena? The growth of participants from the domestic and foreign companies is almost equal this year against the previous edition. Turkey is a growing market with over 65 percent of the population being is less than 26 years of age. And this is the generation that wants to own automobiles more, which propels the industry. What are your plans for the future editions? Well, the next edition will be in 2013 and we will be focusing on restructuring to facilitate the visitors better. We will try to segregate participants based on the product categories such as engine, transmission, body parts, plastics and such things.

16 - 30 April 2011

GLOBAL WATCH

Auto Monitor

Toyota outbids Asia, Europe plaintiffs to join acceleration lawsuits

group of plaintiffs from 13 countries cannot join US litigation against Toyota over sudden unintended acceleration of its vehicles, said a judge coordinating hundreds of lawsuits against the automaker. US District Judge James V Selna in Santa Ana, California, granted Toyota’s motions to dismiss lawsuits fi led by 41 plaintiffs from countries in Asia, Europe, Australia and Central America seeking permission to sue over claims that their vehicles were devalued because of defects that caused Toyota to recall millions of cars. The judge ruled that the foreign plaintiffs hadn’t produced enough evidence to show that that they should be included in the US litigation and that he lacks jurisdiction over their claims. Selna told a law yer for the plaintiffs that they can try to change his mind on some of his findings and said he was ‘sceptical’ they would be able to do so. US lawsuits against Toyota alleging economic loss, wrongful death or personal injury from sudden unintended acceleration were consolidated before Selna last April. The judge has told lawyers that he wants the fi rst cases to go to trial in early 2013. Toyota, the world’s largest automaker, recalled millions of US vehicles last year and in 2009, most for defects related to unintended acceleration. It paid a record $48.8 million in fi nes for how some of the recalls were conducted. The carmaker said last month that it’s recalling another

NHTSA investigating Dodge Ram trucks for steering problems

he National Highway Traffic Safet y Administration has opened a preliminary investigation into steering issues on 160,000 Dodge Ram pickup trucks, according to the Detroit News. NHTSA says in a notice posted on its website that its investigation covers an estimated 160,000 2008-2011 Dodge Ram 2500 and 3500 trucks over ‘outer tie rod failures (that) may result in loss of steering.’ NHTSA has received 12 complaints about steering problems on the trucks. In late December, Chrysler Group LLC recalled 2008-2011 Ram 4500 & 5500 vehicles for left side outer tie rod ball failures to misalignment. ‘The vehicles may experience a weakening and fracture of the left ball stud on the tie rod resulting in the potential loss of directional stability,’ NHTSA said. NHTSA is now considering whether Chrysler should expand the recall to the other trucks for ball joint related issues on the 2500 and 3500 vehicles. ‘This investigation will determine if the subject vehicles have a similar steering system design that might also present a risk of ball joint failure,’ the agency said.

2.17 million vehicles in the US for carpet and floor-mat flaws that could jam gas pedals. If the judge had denied Toyota’s motion, more plaintiffs from foreign countries may have sought to join the litigation and share in pre-trial evidence gathering, including the questioning of Toyota officials and access to Toyota’s secret source code for its electronic throttle-control system, said Monica Kelly, the attorney seeking legal standing for the foreign plaintiffs. Selna’s ruling will allow any foreign plaintiffs who owned cars manufactured in the US to join in the litigation if plaintiffs’ lawyers for domestic cases allow them, Kelly said after the hearing. She said two of the current

plaintiffs own cars manufactured in the United States. ‘Now we know that all foreign plaintiffs who own US-made cars can join the domestic litigation,’ she said. Celeste Migliore, a spokeswoman for Toyota, said the company believes Selna ruled correctly that the foreign plaintiffs have failed to meet the legal requirements to bring their claims against the company in a US court. ‘Although the court allowed the foreign plaintiffs an opportunity to try to amend their complaint, we do not see how they overcome the fundamental problem that these claims should be brought in the plaintiffs’ home countries, not in the US,’ she said in an e-mailed statement.

Toyotas are manufactured in at least 26 countries worldwide, and more than 170 corporate

entities market and sell Toyotas in at least 170 countries, according to the statement.

The second edition of Automotive Dealership Excellence Awards has raised the benchmark for the Indian automotive retail. Held at The Leela Kempinski, Mumbai, on February 26, 2011, the event witnessed participation from leading manufacturers and dealers. To catch the glimpses of the awards log on to www.adea.in ADEA Winners

For further details, write to prachi.mutha@infomedia18.in or call +91-22-3003 4650

16 - 30 April 2011

GLOBAL WATCH

Auto Monitor

Chrysler faces $10,000 loss on every Fiat 500 EV sold

Federal shutdown will halt auto safety probes, EPA testing

edera l reg ulators w ill suspend investigations into auto safety defects and halt vehicle emissions testing if Congress and the White House fail to reach a budget deal by midnight, the government said. The National Highway Traffic Safety Administration said in a statement that it would halt enforcement activities of auto safety issues, as well as writing new rules, including the proposed 2017-25 fuel efficiency standards that are due by 1 September 2011. ‘NHTSA’s vehicle safety research, National Center for Statistics and Analysis activities, a nd r u lemaking and enforcement activ ities including defect investigations — will be suspended,’ the agency said in a statement. The Env iron menta l Protection Agency said it will halt work at its Ann Arbor vehicle testing center. ‘Fuel economy testing, review and analysis will also halt, which could delay new vehicles’ introduction to the market,’ the agency added. Only a prolonged shutdow n could have a significant impact on new vehicle launches. The agency said it will still allow drivers to file complaints.

hrysler Group LLC will lose more than $10,000 on ever y batter y-powered Fiat 500 it sells, Fiat-Chrysler CEO, Sergio Marchionne stated. That heav y financial hit won’t stop the automaker from launching the Chr ysler-built electric version of the minicar in the United States in 2012, underlining the pressure automakers face to improve fuel economy and remain competitive in the race to offer alternative powertrains. ‘The economics of EVs simply don’t work. On the 500 that (Chrysler) will begin selling in the US next year, we will lose over $10,000 (per unit) despite the retail price being three times higher’ than a version of minicar with an internal combustion engine, Marchionne pointed out. He added that Fiat would lose a similar amount on the Fiat 500 EVs it will get from Chrysler’s Mexico plant once the Italian company starts the car’s European sales, likely in 2013. Chr ysler has a license from Fiat to build the fuel- and battery-powered versions of the 500, which means the US automaker gets all the profits — or losses — from North American sales of the cars. Fiat has a 25 percent stake in Chrysler. Chrysler unveiled a concept of the 500 BEV (Battery Electric Vehicle) at the Detroit auto show in January 2010. The gasolinepowered 500 starts at $15,500 in United States, which means the electric version would cost more than $45,000, based on Marchionne’s comments.

W hen a nea r-production concept the Fiat 500 EV was unveiled last year, Marchionne said the production model would start at $32,000, with the batteries accounting for half of the minicar’s cost. Although the per-unit loss is high, the automaker’s total financial hit should be minimal because Fiat-Chr ysler, without being more specific, said it would produce a low volume of the electric 500. The company said that the primar y reason for launching the EV was to enhance the company’s electric mobilit y expertise, which it hopes will lead to advancements in its future gasoline-electric hybrid models. Added benefits of the electric 500 include lowering Chrysler’s average US fuel consumption total and cutting Fiat Group’s f leet CO 2 in Europe, where every EV sold in 2012 and 2013 will count as 3.5 cars in the

automaker’s total. The Fiat Group has the lowest f leet CO2 in Europe, 125.9 gram per km, according to market researchers JATO Dynamics. While Fiat and Marchionne are sceptical about the future of EVs, alliance partners Renault SA and Nissan Motor Co. see a bright future for battery-powered transportation. The alliance partners aim to have a combined 1.5 million EVs on the road worldwide by 2016. The first model to come out of the alliance was the Nissan Leaf compact hatchback, which was named 2011 European Car of the Year. The Leaf will be joined later this year by the full-electric Renau lt Fluence mid-sized sedan and Kangoo car-derived van. Renault-Nissan wants to have annual production capacity for 500,000 EVs by 2015. The partners have invested a combined Euro four billion to develop EVs and batteries.

‘NHTSA’s consumer hotline will remain open, however, and if a safety issue arises, key staff can be called back to work. We still believe there is an opportunity to avoid a government shutdown but are working to ensure that we are prepared for all possible scenarios.’ It’s not clear if anyone would post new recall notices submitted by automakers. They will still be required to notify NHTSA within five days of determining they have a safety defect.

Some operations will remain open. ‘Agency operational plans are still being finalised, but our current understanding is that NHTSA’s state safety grant program will be unaffected because it’s funded by resources from the highway trust fund,’ the agency said. NHTSA Administrator, David Strickland is set to travel to China and Korea later this month on an auto safety trip but he said that would be cancelled in the event of an extended government shutdown.

Auto Monitor

GLOBAL WATCH

16 - 30 April 2011

International auto round-up EUROPE

AMERICAS

Mercedes recalls M class in Germany, US over cruise-control issues

Hybrid, electric car sales up 37 percent

Daimler’s Mercedes-Benz is recalling some older-model M-class SUVs in Germany and the US for issues related to cruise control that may lead to a crash, Daimler and US federal safety regulators said. A wide majority of the vehicles being recalled are model year 2000-2002 M-class SUVs, but there are a small number of 2000-2004 AMG performance vehicles also involved. About 50,000 vehicles will be recalled in Germany and 136,751 in the United States, said Mercedes representatives in those two countries. Tapping the brakes to disengage cruise control may fail, increasing the chances of a crash, a fi ling with the US National Highway Traffic Safety Administration said. There are other ways, including working a ‘cruise control stalk’ on the steering wheel or applying fi rm consistent pressure on the brakes that will still disengage the system in the event that tapping the brakes fails, Mercedes-Benz USA said. Cruise control also automatically disengages at speeds of 25 mph or less, Moran said.

US sales of hybrid and electric vehicles rose nearly twice as fast in the fi rst three months of 2011 as the auto market as a whole, according to a report in The Detroit News. Bolstered by rising gas prices, hybrid and electric car sales increased 37 percent in the fi rst quarter to 78,523 vehicles. Introduced a decade ago, hybrids are still a tiny segment, which closely tracks fuel prices. Hybrids, along with newer electric vehicles, accounted for just 2.6 percent of total fi rst-quarter sales of 3.1 million cars and light trucks, up 20 percent. Toyota accounted for more than two-thirds of hybrid and electric car sales, but the biggest sales gains were recorded by Honda and by GM, which rolled out the Chevrolet Volt extendedrange electric car late last year. Toyota’s hybrid sales rose 37 percent to 54,609 vehicles. Sales of its flagship gas-electric Prius car were up 52 percent. Honda moved into second place after boosting hybrid sales 84 percent to 11,354 vehicles, followed by Ford, which recorded a 9 percent rise to 7,704 advanced technology vehicles.

Russia pledges $177 million to extend scrappage scheme Russia’s Prime Minister Vladimir Putin said the government will channel an additional 5 billion roubles ($177.1 million) into its car scrappage scheme, in an announcement last week on the government’s website. The car scrappage program officially expired at the end of March, but certificates obtained by vehicle owners to purchase new cars are valid until September. The scheme, which has done much to revive sales of locally produced cars after the economic crisis cut demand, will now be extended until the end of 2011. The scheme awards 50,000 roubles to drivers willing to trade in models more than ten years old, and has mainly benefited Russia’s AvtoVAZ after its introduction in March of 2010. Russia was on target to overtake Germany as Europe’s biggest car market before the crisis, but sales halved in 2009 as consumer confidence collapsed and access to credit dried up.

Volvo Trucks to start selling hybrids Volvo Trucks has recently started the sale of the Volvo FE Hybrid to customers in select European markets. The new breed of truck offers fuel savings up to 30 percent and the commencement of sale is part of the Volvo Group’s focus on hybrid vehicles. The hybrid vehicles will be used primarily in distribution and refuse operations in an urban landscape. The Volvo FE Hybrid can reduce fuel and carbon dioxide emissions between 15 and 20 per cent (depending on the driving cycle) and upto 30 per cent using the electric compactor on the hybrid refuse trucks. Hybrid technology is most suitable for cities or densely populated areas, which involve the highest occurrence of vehicle starts and stops. The Volvo FE Hybrid is a parallel hybrid, a technology wherein energy from the diesel engine and electric motor is used either simultaneously or independently of each other. The technology switches automatically between the two power sources. Volvo’s hybrid technology has also been developed to optimise recycling of energy generated from braking. What’s more, electric power helps cut noise levels.

Pat Olney new CEO of Volvo CE Patrick Olney, 42, has been appointed new President and CEO of Volvo Construction Equipment. Olney has an extensive experience spanning 17 years in the Construction Equipment industry, with 10 of these in senior management roles within Volvo CE. During 2001-2004 he was the CFO of Volvo CE, and was then appointed President of Volvo Motor Graders, a position he held until becoming President of Volvo Road Machinery in 2007.

Ford to raise prices on 2011 vehicles by $117 Ford is raising the prices of its 2011 models by $117 or 0.4 percent per vehicle to reflect the higher cost of raw materials, according to a report in The Detroit News. This is the second price increase this year but has been in the works for months as the industry faces higher commodity costs, said spokesman Todd Nissen. Steel and petroleum-based products including rubber have been steadily increasing and gasoline prices remain high. Ford initially raised prices by $130 per model, or 0.5 percent, in January, Nissen said. The automaker has been increasing sales as well as commanding higher transaction prices for its vehicles as consumers embrace a line-up that has improved quality as well as fuel efficiency. Nissen said the price increases are also in line with actions by its competitors. Last week, Toyota said it would raise prices on many 2011 models by an average of 1.7 percent. In addition to higher commodity costs, Toyota is also grappling with the high cost of the yen and supply issues due to last month’s earthquake and tsunami which impacted many parts makers.

Lexus hybrid concept to make world debut in New York Toyota will exhibit a Lexus LF-Gh hybrid concept vehicle at the New York International Auto Show. The LF-Gh show car, which stands for Lexus Future Grand Touring Hybrid, will feature bolder styling and ‘thoughts and ideas that may migrate to future Lexus vehicles on a global scale,’ Toyota said.

Ford negotiating F-150 recall expansion over airbags Ford and federal regulators remain in talks over whether the automaker should expand a recall of F-150 pickup trucks over dozens of reports that airbags have deployed without warning. National Highway Traffic Safety Administration (NHTSA) Chief David Strickland, following an event on distracted driving, that talks are continuing after more than a month of discussions. In February, the Dearborn automaker said it would recall 135,000 F-150 trucks in the US over concerns raised by the government that air bags could deploy without warning. But that’s just a fraction of the 1.3 million vehicles that NHTSA asked Ford to recall in January. NHTSA said it has reports of 269 air bag deployments and 98 injuries from 2004-2006 F-150 vehicles. Injuries include chipped teeth, fractured arms and burns. Ford made two separate design changes to the F-150 in 2006 after numerous reports of air bags deploying without warning. NHTSA warned that the problem ‘will steadily increase over time.’ It also added that some dealers were unaware of the problem — and that drivers who see the air bag light may have no idea that it means the air bag may deploy without warning. Ford said most drivers have responded to warning lights.

North American Volvo Trucks recall 700 workers to boost production Volvo Trucks in North America has announced that it plans to ramp up production at its New River Valley, VA, plant and recall approximately 700 employees to meet the increased demand of their products. The current employment at the plant is just under 1,500. Through February 2011, Volvo Trucks increased its combined US and Canadian retail sales volume to 47 percent versus the same period last year. The ramp-up, which includes adding a second shift and associated recalls, will take place in several stages across May and June 2011.

ASIA Fiat to launch two Dodge-based sedans in China, Russia Fiat plans to launch a compact sedan in China and Russia based on the Dodge Caliber replacement that launches in North America next January. The sedan will go into production in China in the second half of 2012. Fiat has not yet announced timing for the Russia launch. Fiat will also launch a mid-sized sedan in China and in Russia in late 2013 based on the replacement for the Dodge Avenger that will debut in the United States the same year. Both sedans are based on a 40mmwidened version of Fiat’s new compact architecture, which Fiat and Chrysler called compact wide. The compact architecture debuted fi rst on the Alfa Romeo Giulietta compact hatchback last year. Fiat-Chrysler CEO Sergio Marchionne said the sedans are the fi rst clear example of the global reach of the Fiat-Chrysler alliance, adding that the compact wWide architecture will become ‘truly global’ because it will also underpin future Jeep compact and mid-sized SUVs.

Mercedes sales up nearly 13 percent in Q1 Daimler AG revealed that its core Mercedes-Benz brand saw car sales increase by nearly 13 percent in year-on-year terms in the fi rst quarter, fuelled by another powerful rise in Chinese deliveries. Mercedes-Benz delivered 280,552 cars worldwide in the quar-

ter. Daimler said today that sales for March alone totalled 118,357 — a 7.7 percent rise. Mercedes-Benz Executive, Joachim Schmidt stated, ‘We want to achieve a new sales record in 2011.’ He said that the brand is looking for year-on-year growth in the current quarter. First-quarter sales were up 78 percent in China at 42,990 units and 8.4 percent in the United States at 53,346. However, they dropped 11.4 percent in Japan to 7,317. In March, when the country was hit by a devastating earthquake and tsunami, sales there plunged 22.5 percent.

VW plans global Beetle reveal Volkswagen will introduce the next Beetle car in a global rollout starting in Shanghai, then moving to Berlin and lastly to New York, according to a report in The Detroit News. The reveal of the 2012 Beetle, the latest iteration of the company’s first car, will feature an MTV Sound System celebration hosted by MTV video jockeys in China, followed by MTV World Stage events in Berlin and New York.

Microsoft, Toyota partner on efficiency-oriented auto software Microsoft and Toyota are forming a partnership to develop an in-car electronics system that may help battery-powered vehicles planned by the world’s largest automaker run more efficiently. They’ll jointly invest $11.7 million in Toyota Media Service, a Toyota subsidiary that provides data services to drivers, the companies said in a statement. Along with plans for telematics services including data, navigation and in-car entertainment, and multimedia using Microsoft’s Windows Azure platform, the system may manage energy use in vehicles, the companies said. While automakers such as GM and Ford, which also offer an in-car electronics system developed with Microsoft, have expanded the range of services available in cars.

16 - 30 April 2011

Ford may shift its reserves

ord is considering eliminating an allowance for future tax credits — an action that speaks volumes about the automaker’s return to profitability and confidence in strong future earnings. Ford may remove a valuation allowance held against deferred tax assets in the second half of the year, according to a fi ling with the Securities and Exchange Commission. Tax and accounting rules dictate that if a company loses money for an extended period, instead of paying 35 percent in taxes, it can get that percentage as a benefit. The valuation allowance, created for tax purposes to offset assets, comes off the books when a company shows sustained profits for about three years. In Ford’s case, the allowance was created in 2006, and the reserve grew over subsequent money-losing years. The fi ling shows it was $15.7 billion at the end of 2010. But Ford has reversed its fortunes. Its net income was $6.6 billion in 2010 — the second consecutive year in the black. Shifting some of the $15.7 billion allowance to net income will result in a one-time, non-cash gain that could boost 2011 net income $10 billion to $13 billion, reported Bloomberg News. And Ford’s tax rate is likely to about 35 percent, analyst Brian Johnson of Barclays Capital said in a note to investors. But that should not scare Wall Street because it affects the books used for accounting only, said Stephen Brown, senior director at Fitch Ratings in Chicago. Separate figures determine cash taxes and factor in $23.4 billion in deferred tax credits after racking up $31.4 billion in operating losses from 2005 to 2009. The tax credits mean Ford is unlikely to pay US taxes for the rest of the decade, both Brown and Johnson said. Both analysts also said the accounting change will not affect Ford’s credit rating. The accounting change will appear as a huge gain in earnings, but as a non-cash special charge. And there are no surprises, as agencies watched Ford build up the allowance knowing it eventually would be reversed. ‘It is backwards-looking, but the company is telling the accountants it will be profitable going forward, and the proof is they have been for the last few years.’

German Styling Centre Ford has begun work to expand its German styling centre, which has the global lead on the design and development of the automaker’s sub-compact and compact vehicles. The Euro11.6 million expansion of the centre in CologneMerkenich is the largest single expansion done since it was first constructed in 1968, Ford said. Ford’s Fiesta subcompact and Focus compact models are designed at the centre, which currently covers a total of 13,000 square metres and employs 250 workers. The expansion will include a new 3,000 sq metre facility with room for 100 new work stations and will house a new ‘powerwall’ capable of projecting vehicle and concept designs in a 3-D and virtual environment. The project also includes a redesign of the existing design studios, plus the installation of new milling machines that use computer-aided design to create precise clay models of new vehicle designs.

GLOBAL WATCH

Auto Monitor

Chinese ﬁrm buys majority stake in Preh

hina’s Joyson Investment Holding will take a majority stake in German auto supplier Preh GmbH, creating a global fi rm worth an estimated Euro 500 million ($721.8 million). The agreement follows up on a JV between the two fi rms to supply the market in China, and will give Ningbo-based Joyson a 74.9 percent stake in Preh. The German company produces climate control, drive systems, sensors and instrument clusters for customers such as the Volkswagen Group. Preh has inhouse injection molding and tooling operations.

Majority Partnership The companies did not say how long they expect it will take for the deal to gain approval from

government authorities. Preh, based in Bad Neustadt, Germany, said in a statement that its current majority partner, Deutsche Beteiligungs will retain a 25.1 percent stake while existing Preh management will control and expand the company’s global activities from Germany. With Joyson, Preh will ‘substantially improve its market position’ and open new market opportunities, especially in China. China is quickly becoming a more important market for western automotive suppliers, according to one industry analyst.

Asian Market ‘Everyone can see which way the global automotive industry is headed, and it’s headed for Asia, so to have a permanent base there, especially in China, is going to be

very important,’ said Director, JD Power and Associates, Tim Dunne. JD Power’s own forecasts estimate that China alone will account for one third of global auto sales in ten years. Both GM and Ford have their international presidents based in Shanghai, he noted. Ten years ago, they would have been based in Europe or Japan. But while the auto base is turning to China, Chinese suppliers still are not as sophisticated as counterparts in North America and Europe. Dunne said that has prompted government initiatives to fi nd ways to improve technology.

International Presence Preh’s capabilities, both in electronic controls and multi-shot processing, bring key technolog-

ical expertise to the deal, while Joyson has access to capital. Joyson’s holdings include both real estate and manufacturing, with under-the-hood components made by both Ningo Joyson Automotive Components and Changchun Joyson Automotive Components and auto entertainment products made by Bosen Corporation. It bought Huade Plastics in 2009. Preh’s international holdings include production in Mex ico, Germany, Portuga l and Romania. The two firms first entered into a joint venture in August 2010 to combine forces in China. The combined force of the companies’ technical and capital access will allow it to reinforce its market in Asia, Europe and North America, Preh executives said.

Auto Monitor

16 - 30 April 2011

STUDY

Tyre margins may come under pressure: ICRA

% increase

187.3

114.9

101.1

90.9

92.0

India is estimated to have imported ~0.18 million MT of NR in fi scal 2010 as against the ~0.16 million MT imported in the previous year. With insufficient domestic NR capacities to match the robust demand, India’s dependence on NR import is expected to increase further. There are over six trade agreements, largely between the Asian countries, covering both import of tyres and raw material for tyre manufacture. Excluding the impact of the trade agreements, the duty on NR stands at 20 percent as compared to the ten percent customs duty on import of tyres. Factoring in the impact of the trade agreements, customs duty on new tyres falls to ~8.6 percent while NR customs duty falls to only 16 percent (both under the Asia Pacific trade agreement). tyre segments (%) Radialisation trends across various In December-10, T&B segments LCV Passenger Car tyre (%) acceding to industry demands and 99 98 97 95 in a bid to control 90 87 infl ation, the GoI undertook a temporary and quantity limited import duty 20 18 15 12 11 11 10 cut on NR to 7.5 9 5 4 4 3 percent for shipments up to 40,000 FY05 FY06 FY07 FY08 FY09 FY10 tonnes applicable till March 31, 2011. Source: Michelin fact book 2009, ATMA NR import beyond 0.85 million MT per annum, is March 31, 2011 will attract duty a net importer. Global supply of 20 percent or `20 per kg, of rubber is dependent on cliwhichever in lower. With intermatic conditions; area under national rubber prices reigning cultivation and yield per hechigher than domestic produce tare in the key NR cultivating due to regional differences in countries. In India, over 62 perdemand and inventory, this cent of NR is consumed by the duty cut so far has not impacted tyre industry, with the balance domestic price. being consumed by non-tyre industries of automotive, indusMargins hinge on the trial additives and construction ability to pass on price material. China, Japan, India and increases the United States are the key conIn spite of volume declines dursumers of NR. ing 2008-09, particularly in the An extended winter and unseaT&B segment, the industry benesonal rains disrupted tapping of fited from decline in raw material rubber in Thailand, India and (rubber and crude) costs starting China during 2010. In addition, from September 2008 due to the there was a decline in Indonesia’s global slowdown. With the indusharvest due to adverse climattry maintaining three months of ic conditions, which capped the inventory on an average, the ben-

67.0

The inverted duty structure a challenge for the industry

55.7

emand for tyres arises from two markets, namely, OEM and replacement. The demand from the OEM market fluctuates directly in line with end-use demand for the automobile/ construction equipment segment and hence is prone to a high degree of cyclicality. In contrast, the replacement market is sizeable (around 75 percent of the global sales) as well as stable. Replacement demand for tyres depends on on-road vehicle population, road conditions, vehicle scrappage rules, overloading norms, retreading intensity and miles driven; it is less cyclical than OEM demand and is generally a high-margin business for tyre manufacturers. The outlook for the domestic automobile industry in India remains robust supported by strong GDP growth; favourable demographic profile and rising disposable income. Also, the proposed investments in roads (35,000 kms of highways during FY 2008-09-FY 2013-14; four laning of over 5,184 km of National Highways and two-laning / improvement of about 4,756 km of State roads) to improve connectivity are expected to increase mileage and tyre demand over the medium term. India’s growing importance as an automotive export hub for small cars is another key demand driver for tyres. In FY 2009-10, India manufactured 35.4 lakh vehicles (29 percent growth); 105.1 lakh twowheelers (25 percent growth); 4.4 lakh tractors (29 percent growth) and over 45,000 mining and construction equipment. The Indian tyre industry is highly raw material (RM) intensive, with RM accounting for about 65-70 percent of the production cost for tyres. The key raw materials used in the manufacturing process are natural rubber (NR, about 43 percent of the total raw material); synthetic rubber (SR, about 15 percent); nylon tyre cord fabric (NTCF, 18 percent); carbon black (about 11 percent) and rubber chemicals (about 5 percent). The two types of SR used in tyres are Styrene Butadiene Rubber (SBR) and Poly Butadiene Rubber (PBR). Tyre grade SBR is not manufactured domestically, while domestic production of PBR falls short of consumption by about 30 percent; effectively, India imports over 65 percent of its SR requirements. The other key raw materials consumed by the tyre industry are crude derivatives such as nylon tyre cord fabric (NTCF), carbon black and rubber chemicals. While NTCF provides strength and imparts tenacity, carbon black enhances the life span of the tyre. With only two domestic manufacturers for NTCF, India imports 45-60 percent of its requirements. Additionally, about 20 percent of the rubber chemicals are also imported by India. On an average, tyre manufacturers in India import about 30-40 percent of their total raw materials. The natural rubber price has seen a spike during 2010-11 and touched unprecedented highs of over `232 per kg as on 1 April 2011. The NR price has seen a relatively stable rise in the past, except for a

and currently account for ~5 percent of domestic consumption in volume terms and ~6 percent in value terms; T&B tyres account for bulk of the imports (53 percent in value terms in FY10). Despite their perceived inferior quality and shorter life, In order to protect the domestic industry, GoI classified TBRs under the restricted list in November 2008. While import restrictions favoured domestic tyre manufacturers, it made sourcing of TBRs difficult for OEMs and tyre traders. In February 2010, the government further imposed a defi nitive ADD9 on TBRs imported from China and Thailand; and removed TBRs from the restricted list in May 2010. Despite the imposition of ADD, Chinese tyres continue to remain cheaper than domestic tyres. Apart from India, China’s aggressive pricing has also led several other countries such as Australia, Egypt, Mexico, Peru, South Africa, Turkey and Venezuela to initiate anti-dumping measures into tyre imports from China. In September 2009, the United States imposed an additional 35 percent duty on imports of passenger vehicles and light truck tyres from China. While Chinese imports into the Rubber price trends United States 200 70% d ropped by Chart 2: Rubber price trends about 40 percent 180 60% Average price of ` S-4 (`/Kg) (from October 160 50% Growth rate 2009 to June 140 2010), imports 40% 120 from other low100 30% cost countries 80 20% like Thailand, 60 Indonesia and 10% 40 Taiwan filled 0% 20 the demand gap in the United 0 -10% FY04 FY05 FY06 FY07 FY08 FY09 FY10 YTD Feb-11 States. On the ot her ha nd, Source: Indian Rubber Board and ICRA Estimates re-directed Chinese production could lead international markets. In view of to increased exports to India. the continuing robust demand The industry is likely to face and increasing rubber prices, continued capacity constraints further phased hikes of 2-6 perin the TBR segment over the next cent are expected to be witnessed two years (2011-13), as the bulk during the coming months. of the greenfield capacities are expected to be fully operational Increasing tyre prices to by only 2013. Hence, ICRA expects push re-treading the imports of TBRs to remain Over 80 percent of the Indian strong over the next two years. re-treading industry is fragICRA estimates the total installed mented and lies with numerous domestic tyre capacity to increase un-orga nised pa rticipa nts. by more than 47 percent from 122 Organised participation in remillion tyres in 2009-10 to around treading is limited in India to 180 million tyres by 2012-1310. In a few participants like the Elgi line with demand trends, the TBR group, Indag Rubber Limited and segment is expected to attract the Vamshi Rubber Limited, which highest share of investments (over operate through the franchisee 50 percent) over the next three route and some tyre manufacyears followed by the PCR segturers like MRF and JK tyres. ment. Given the strong demand Globally, however, large tyre expectations from the domestic manufacturers like Michelin auto industry and the possibility of and Bridgestone play a key role some delays in project implemenin the re-treading business. ICRA tation, we expect utilisation levels expects the increasing price of to remain high over the medityres and the supply deficit of um term, especially in the TBR rubber for tyre manufacturers to segment. This incremental domesresult in increased re-treading in tic capacity is, however, expected the Indian M&HCV industry. to reduce imports, especially in While radialisation in the the TBR segments, over the mediIndian passenger car segment um to long term. However, has reached almost 100 percent; coupled with the expected marit is currently low in the T&B gin pressure from raw material segment at nine-ten percent, inflation, these expansion projects compared to a world average of are likely to result in depressed 68 percent. However, a conflucash flows, higher leverage and ence of structural inefficiencies subdued RoCE over the next coupled with the initial higher few years. investments required for radial tyres (~25-35 percent) by a fleet owner, inhibited this transition in (Authors work with rating the past. Tyre imports into India agency ICRA. Views expressed are have grown sharply at a CAGR of personal and may not reflect those 36 percent (volume) since FY06 of their organisation) efits of lower RM costs were felt from Q4, 2008-09. With prices relatively soft for the next 12-15 months, coupled with the strong demand revival in automobiles, the tyre industry enjoyed healthy profitability during the subsequent three-four quarters, until Q4, 2009-10, with operating margins of 12-17 percent. However, starting December 2009, the raw material price trend reversed with NR prices growing by over 50 percent in the subsequent 12 months. As tyre is a relatively commoditised business, usually the ability to pass on sharp rises in raw material prices remains a challenge for industry participants. The pricing power in the replacement markets, however, has been curbed to an extent, especially in the T&B segment, due to competition from lowerpriced Chinese imports. However, capacity constraints in domestic markets have lent some pricing power to tyre manufacturers. Indian tyre manufacturers have undertaken several price hikes of over 20-25 percent during the past 12 months. The price hikes have partly compensated for the overall cost increases and is in line with similar price hikes in

50.4

Dwibedy

supply growth of NR at about 5.7 percent in CY 2010. These climatic conditions are likely to curb the supply of rubber in 2011 also, leading to relatively stagnant supply volumes and a fall in rubber inventory worldwide. Due to supply constraints and strong speculative interest witnessed in rubber futures, NR prices are likely to remain fi rm over the next 12-15 months until the next anticipated shift in the supply curve starts with the expansion in area under cultivation. As the crop planted in the 1980s ages and production declines, the large-scale replanting undertaken in 2003-09 globally is expected to be ready for commercial tapping by 2012, with a gestation of six to seven years. Despite the resultant increase in acreage, the industry estimates a widening demand supply gap in India over the longer term; demand is expected to grow by over six-eight percent while supply is expected to grow by around five percent per annum. Supply to an extent is limited by lack of available high-yielding cultivatable area. Consequently, the tyre industry is likely to face strong headwinds from escalating costs over the immediate term.

` per MT

Pavethra Ponniah & Subrat

spike since January-10. In the past, NR prices have been influenced by demand-supply balance; relative strengths of the currencies of rubber exporting countries (Thai baht, Indonesian rupiah and the Malaysian ringgit) and the influence of the futures markets. Appreciation of the currency of the exporting country against the US dollar leads to stronger NR prices globally. Interests and volumes in the rubber future market also have a strong influence on NR prices. The sharp price spike in NR since 2010 has been contributed by a combination of revival in global automotive demand; weather conditions disrupting supplies from key rubber producing countries and strong speculative interest in futures. Japan accounts for almost seven percent of global demand for NR. The Middle East crisis coupled with the earthquake which hit Japan on 11 March 11 lead to a temporary decline in demand and a large sell off in the rubber futures market resulting in a temporary but sharp decline in NR prices during March-11. However NR prices have since recovered to an extent and are continuing to reign high. The global demand for OEM tyres witnessed a stronger-thanexpected rebound of 25 percent (passenger and light truck) and 33 percent (heavy trucks) as against a relatively steady replacement demand growth of 9 percent and 17 percent, respectively, during CY 2010. This is as against a sharp 12 percent decline in passenger vehicle OEM tyre demand and a 39 percent decline in truck tyre demand during CY 2009. Replacement markets fell by a lower 3.2 percent and 10.0 percent, respectively, in CY 2009 as miles driven and freight tonnage fell. Nevertheless, the demand declines in 2009 had a relatively limited impact on natural rubber prices due to supply constraints and speculative interests. Thailand, Indonesia and Malaysia are the largest exporters of rubber in the world, while India, despite producing around

Radialisation (%)

Anjan Ghosh, Subrata Ray,

16 - 30 April 2011

Auto Monitor

TECHNOLOGY

Robot paints success story

BMW to re-forge Schuler partnership in new China plant

ermany based Dürr sold the 5000th painting robot to Volkswagen Taubate recently. Soon the robot will be painting in the latter’s factory in Brazil together with 84 other new Dürr robots in two new top coat lines. The success story of the painting robot developed by Dürr was initially introduced in the mid-1990s with the primary aim to launch its own robot, matched with the interests of the paint application technology. In 1998-1999, the fi rst robots convinced customers in Germany and Spain with painting quality, flexibility and productivity. What’s more, colour changes that lasted only seconds, high process safety and the increase in the fi rst run rate in the painting lines have became their trademarks. Today in the second generation, Dürr painting robots have become a firm component of automobile factories across five continents in 34 countries and with Tier 1 suppliers of automobile parts. With their robot product portfolio, Dürr covers all market demands. This includes f loor-based and elevated robots, robots on travelling rails, handling robots for opening doors and hoods, during interior painting and socalled swing arm robots for the interior painting of load spaces of vans.

The robots are also used for painting in the aerospace industry, in wind power plants and in railroad technology. More than 1000 of the painting robots are installed in Germany, more than 800 in China and over 1100 in various locations across the globe. Dürr is a mechanical and plant engineering group that holds leading positions in the world market in its areas of operation and generates 80% of its sales in business with the automotive industry. The Dürr Group operates in the market with three divisions. The Paint and Assembly Systems division supplies production and painting technology, especially for car bodies, while the machinery and systems from the Measuring and Process Systems division are used in engine and transmission manufacturing and in fi nal vehicle assembly, among other areas. The third division, Clean Technology Systems, is focused on processes to improve energy efficiency and on exhaust air purification. Dürr has 48 business locations in 21 countries worldwide.

new cooperation between BMW and metal-forming experts Schuler underlines the opportunities opening up for Germany’s plant and machine manufacturers. BMW is geared up to setup a new factory in Shenyang, north-east China in 2012 and Schuler will be installing the same cutting-edge, fully automated servo press lines with ServoDirect technology at the new Chinese facility as those already operating successfully at BMW’s plants in Regensburg and Leipzig, Germany. ‘The world can simply no longer ignore the Chinese car market,’ stated the German Association of the Automotive Industry (Verband der Automobilindustrie or VDA) in a recent press release, underlining the country’s importance for German manufacturers.

The servo press advantage Two key benefits were decisive for the car manufacturer: high output levels and fast production launch and the ServoDirect technology by Shuler has proven to achieve the same. Two servo press lines by Schuler have already been in operation at BMW facilities in Germany since 2009. The lines feature a total press force of 91,000 kN and 103,000 kN, divided among a total of five and six servo presses, respectively. As a result, maximum output can reach 68 parts per minute, establishing their worth in daily operation at both the company’s plants. And thus, BMW intends to utilise this tremendous performance in China.

With the ServoDirect technology, Schuler anticipates an economic and technological leap in metal-forming technology, which will benefit the mass manufacturing of parts in particular. ‘This all-round package enables BMW to reduce set up times for its production presses to a minimum.’ said Key Account Manager for the BMW Group, Arndt Brandstetter.

Produced by Schuler in China After production will be launched in summer 2012, the German car manufacturer in Shenyang will incorporate the servo-drive metal-forming technology which fits seamlessly into its global manufacturing network. For example, production data for a new part developed in Germany can be fed directly into the Chinese press lines. However, before production even starts,

BMW will already benefit from Schuler’s own global manufacturing network: various parts of the lines for Shenyang are to be produced and assembled by Schuler’s Chinese facilities in Shanghai and Dalian, while other core components will be supplied from Germany — such as the blankloader and part outfeed unit from Schuler Automation in Gemmingen. ‘The Schuler Group’s international manufacturing network and the production technology itself are both exemplary for the future. Many car manufacturers are standardising their global production networks in a similar way. With our experience in press-line planning and our global service and production facilities, we are ideally positioned to meet exactly these needs.’ said Head of the Business Unit Large Mechanical Equipment at Schuler Presses, Hans Hofele.

Dynomerk Controls came into existence in April 1996 as a group of Engineers experienced in manufacturing Automotive Test Equipments like Eddy Current Dynamometers, Transient Dynamometer, Regenerative Chassis Dynamometers, Brake Inertia Dynamometers and Test Rigs for Automotive Components

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Dyno Range - 5 kW to 1200 kW Real Time Digital architecture for PID control and Data Acquisition. Digital Calibration for acquired parameters Compliance : 88/77/EC,CMVR TAP, DIN 70020, SAE J 1349, JIS D 1001, IS 1585, IS 10003, IS 14599, EEC 80/1269, IS 8178 Bump Less transfer modes High Dynamic Digital Communication between distributed IO devices and Controller, PC SCADA Industry Standard Protocols; ODBC, TCP/IP, MODBUS, AK, ACSII, CAN, PROFIBUS, SERCOS, ASAP-3, Digital IO. Analog IO SFC measurmant by in line dynamic Mass Flow Sensor / Gravimetric / Volumetric AC Servo Throttle Actuator & Controller "Fguikp"cpf"

Nc{qwv "Qh"Vguv"Egnn

Ekxkn"Fguikp"hqt" Hqwpfcvkqp"cpf" Vtgpejgu

F{pq"Eqqnkpi" Ycvgt "Ektewncvkqp"u{uvgo

Vguv"Egnn" Xgpvkncvkqp" U{uvgo

Hwgn"cpf"Eqqncpv Eqpfkvkqpkpi

Uqwpf"Rtqqhkpi" cpf" Ceqwuvkeu

Kpvgitcvgf" Uqnwvkqp

Vguv"Egnn"Jqv"Ckt" Gzjcwuv"U{uvgo

F{pq"Gzjcwuv" Fkurqucn "u{uvgo

Gpikpg"Jcpfnkpi U{uvgou

Gpikpg"Uvctvkpi" U{uvgo

Gpikpg"Eqqnkpi "Ycvgt1Eqqncpv" Ektewncvkqp"U{uvgo

"Gokuukqp." Dnqy/d{" Ogcuwtgogpv

Eqpfkvkqpgf"Ckt" Jcpfnkpi"Wpkv

Hwgn"Ektewncvkqp" U{uvgo

Vehicle Testing Dynamometer 2 Wheeler, 3 Wheeler, 4 Wheeler • Real Time Embedded Digital Controller with PID and High Speed Data Acquisition. • Online Digital Calibration • High Speed Digital Communication for PC SCADA and I/O devices • Compliance to Industry Standard Protocols; ODBC, TCP/IP, MODBUS, AK, ASCII, CAN, PROFIBUS, SERCOS, ASAP-3, K-Line, Digital IO. Analog IO • Motorised Adjustable Wheel base controller. • Application Area – R & D, Endurance, QA , Production (End-of-line) etc • Track width: As per vehicle model requirement • Inertia simulation; Electrical/Mechanical upto GVW • ABS / ECU / VCU Integration • Four quadrant DC /AC Servo (motor) Dynamometer • Speed Synchronised windage simulation and Exhaust Extraction system. • Ventilation system and Acoustics Enclosure. • Compliance : SEA - J 1263, SAE - J 2264, DIRECTIVE 70/220/EEC

EQORWVKPI"RQYGT UKPEG"3;;8

Plot No : S - 101,S Block, MIDC, Pimpri - Chinchwad Industrial Area, Bhosari,Pune 411 026 Tel # +91 - 20 - 40717301 / 02 e-mail : dynomerkcontrol@vsnl.net, Website:www.dynomerk.co.in

Auto Monitor

16 - 30 April 2011

N AMERICAN ASSEMBLY

AUTOFACTS Global Automotive Outlook PricewaterhouseCoopers LLP

North America Assby Tracking 1-2011 (Tracking by Brand & Nameplate) Feb 2011 Ownership Org/

Last 3 Months YOY

Assembly

YOY

Share %

Share Chg

Volume

Year to Date YOY

Assembly

YOY

% Chg

Share %

Share Chg

Volume

YOY

Assembly

YOY

% Chg

Share %

Share Chg

Brand & Nameplate

Volume

% Chg

AutoAlliance International (USA)

10,911

7.2%

1.0%

(-0.1)

25,130

-15.9%

0.9%

(-0.3)

16,527

-4.2%

0.8%

(-0.2)

Ford Mustang

5,964

9.4%

0.6%

(-0.0)

12,663

-22.6%

0.4%

(-0.2)

8,569

-5.9%

0.4%

(-0.1) (-0.1)

Mazda Mazda6

4,947

4.7%

0.5%

(-0.0)

12,467

-7.9%

0.4%

(-0.1)

7,958

-2.2%

0.4%

BMW (Germany)

20,797

74.0%

2.0%

0.7

52,397

50.3%

1.8%

0.5

37,525

61.0%

1.8%

0.5

BMW X3

8,599

0.8%

0.8

20,185

0.7%

0.7

15,472

0.8%

0.8 (-0.2)

BMW X5

8,683

4.7%

0.8%

(-0.1)

22,099

-8.6%

0.8%

(-0.2)

15,052

-6.9%

0.7%

BMW X6

3,515

-4.0%

0.3%

(-0.1)

10,113

-5.4%

0.3%

(-0.1)

7,001

-1.9%

0.3%

(-0.1)

Chrysler Group LLC (USA)

143,608

2.4%

13.5%

(-1.5)

385,267

16.0%

13.2%

0.6

281,859

23.2%

13.7%

1.0

Chrysler 200

8,121

0.8%

0.8

16,377

0.6%

0.6

14,967

0.7%

0.7

Chrysler 300

726

-84.1%

0.1%

(-0.4)

726

-93.6%

0.0%

(-0.4)

726

-88.8%

0.0%

(-0.3)

Chrysler PT Cruiser

-100.0%

(-0.1)

-100.0%

(-0.2)

-100.0%

(-0.2)

Chrysler Sebring

-100.0%

(-0.4)

-100.0%

(-0.5)

-100.0%

(-0.4)

Chrysler Town & Country

6,772

-41.2%

0.6%

(-0.6)

25,415

20.0%

0.9%

0.1

15,625

12.5%

0.8%

(-0.0)

Dodge Avenger

5,598

66.9%

0.5%

0.2

12,934

23.3%

0.4%

0.0

9,118

38.6%

0.4%

0.1

Dodge Caliber

3,846

-58.7%

0.4%

(-0.6)

9,497

-54.3%

0.3%

(-0.5)

7,665

-47.4%

0.4%

(-0.4)

Dodge Caravan

13,467

-17.2%

1.3%

(-0.5)

37,231

22.7%

1.3%

0.1

27,121

31.2%

1.3%

0.2

Dodge Challenger

2,983

-45.0%

0.3%

(-0.3)

8,411

-33.9%

0.3%

(-0.2)

6,733

-16.8%

0.3%

(-0.1)

Dodge Charger

10,372

2.3%

1.0%

(-0.1)

17,167

-21.9%

0.6%

(-0.2)

17,167

14.3%

0.8%

0.0

Dodge Dakota

1,981

36.2%

0.2%

0.0

5,503

49.7%

0.2%

0.0

3,604

34.8%

0.2%

0.0 0.7

Dodge Durango

6,852

0.6%

0.6

17,479

0.6%

0.6

14,050

0.7%

Dodge Journey

7,859

-34.2%

0.7%

(-0.5)

23,419

-19.3%

0.8%

(-0.3)

15,671

-22.7%

0.8%

(-0.4)

Dodge Nitro

1,879

-28.1%

0.2%

(-0.1)

6,153

22.4%

0.2%

0.0

3,621

-5.9%

0.2%

(-0.0)

Dodge Ram Pickup

-100.0%

(-2.3)

-100.0%

(-2.2)

-100.0%

(-2.4)

Dodge Viper

Fiat 500

1,610

0.2%

0.2

3,242

0.1%

0.1

2,518

0.1%

0.1

Jeep Commander

-100.0%

(-0.3)

-100.0%

(-0.3)

-100.0%

(-0.3)

Jeep Compass

7,563

101.2%

0.7%

0.3

17,976

137.2%

0.6%

0.3

15,500

178.3%

0.8%

0.4

Jeep Grand Cherokee

11,207

11.8%

1.1%

(-0.0)

34,387

28.5%

1.2%

0.2

22,734

18.6%

1.1%

0.0

Jeep Liberty

6,255

108.1%

0.6%

0.3

14,954

32.4%

0.5%

0.1

10,470

45.6%

0.5%

0.1

Jeep Patriot

5,927

44.6%

0.6%

0.1

21,591

125.8%

0.7%

0.4

14,064

146.3%

0.7%

0.4

Jeep Wrangler

4,877

10.8%

0.5%

(-0.0)

14,312

45.9%

0.5%

0.1

9,903

36.3%

0.5%

0.1

Jeep Wrangler Unlimited

8,713

26.5%

0.8%

0.1

23,815

51.4%

0.8%

0.2

17,435

56.3%

0.8%

0.2

Ram Pickup

27,000

2.5%

2.5

74,678

2.6%

2.6

53,167

2.6%

2.6

Volkswagen Routan

-100.0%

(-0.2)

-100.0%

(-0.2)

-100.0%

(-0.2)

Daimler AG (Germany)

11,567

4.8%

1.1%

(-0.1)

31,653

5.1%

1.1%

(-0.1)

22,257

3.5%

1.1%

(-0.1)

Dodge Sprinter

-100.0%

(-0.0)

Freightliner Sprinter

687

25.1%

0.1%

0.0

1,830

26.0%

0.1%

0.0

1,345

27.1%

0.1%

0.0

Mercedes-Benz GL-Class

2,400

-9.6%

0.2%

(-0.1)

6,937

1.8%

0.2%

(-0.0)

4,680

-9.6%

0.2%

(-0.1)

Mercedes-Benz M-Class

7,040

9.6%

0.7%

(-0.0)

18,883

9.1%

0.6%

(-0.0)

13,424

7.2%

0.7%

(-0.0)

Mercedes-Benz R-Class

1,440

2.4%

0.1%

(-0.0)

4,003

10.5%

0.1%

(-0.0)

2,808

2.4%

0.1%

(-0.0)

Ford Motor Company (USA)

198,805

16.8%

18.7%

0.4

523,743

-0.1%

18.0%

(-1.9)

375,834

7.3%

18.2%

(-1.1)

Ford Crown Victoria

5,756

29.2%

0.5%

0.1

17,005

39.7%

0.6%

0.1

13,107

52.2%

0.6%

0.2

Ford Econoline

13,926

22.2%

1.3%

0.1

33,267

7.8%

1.1%

(-0.0)

25,423

21.7%

1.2%

0.1

Ford Edge

13,987

7.4%

1.3%

(-0.1)

38,022

6.6%

1.3%

(-0.1)

27,503

8.1%

1.3%

(-0.1)

Ford Escape

25,005

6.2%

2.4%

(-0.2)

67,935

6.0%

2.3%

(-0.1)

50,588

12.0%

2.5%

(-0.0)

Ford Expedition

4,197

191.3%

0.4%

0.2

11,735

24.5%

0.4%

0.0

7,476

42.2%

0.4%

0.1

Ford Explorer

11,444

80.8%

1.1%

0.4

30,440

69.1%

1.0%

0.4

20,035

60.7%

1.0%

0.3 (-0.1)

Ford Explorer Sport Trac

-100.0%

(-0.1)

633

-74.2%

0.0%

(-0.1)

-100.0%

Ford Fiesta

8,338

0.8%

0.8

28,070

1.0%

1.0

19,248

0.9%

0.9

Ford Flex

1,636

-54.0%

0.2%

(-0.2)

6,288

-50.5%

0.2%

(-0.3)

4,645

-44.8%

0.2%

(-0.2)

Ford Focus

5,845

-61.8%

0.6%

(-1.1)

8,637

-79.6%

0.3%

(-1.3)

6,145

-79.2%

0.3%

(-1.3)

Ford F-Series

62,171

59.6%

5.9%

1.7

155,859

15.4%

5.3%

0.2

108,429

28.3%

5.3%

0.6

Ford Fusion

22,729

12.3%

2.1%

(-0.0)

64,990

13.0%

2.2%

0.0

48,464

20.1%

2.4%

0.1

Ford Ranger

7,084

37.3%

0.7%

0.1

17,427

-14.1%

0.6%

(-0.2)

14,657

24.6%

0.7%

0.1

Ford Taurus

6,505

-19.1%

0.6%

(-0.3)

13,369

-42.7%

0.5%

(-0.4)

10,410

-34.4%

0.5%

(-0.4)

Lincoln Mark LT

-36.1%

0.0%

(-0.0)

-66.1%

0.0%

(-0.0)

-66.1%

0.0%

(-0.0)

Lincoln MKS

1,018

-25.1%

0.1%

(-0.1)

2,324

-46.6%

0.1%

(-0.1)

1,404

-51.5%

0.1%

(-0.1)

Lincoln MKT

294

-40.2%

0.0%

(-0.0)

1,410

-54.0%

0.0%

(-0.1)

1,147

-35.6%

0.1%

(-0.0)

Lincoln MKX

2,736

18.6%

0.3%

0.0

8,188

19.9%

0.3%

0.0

5,480

12.5%

0.3%

(-0.0)

Lincoln MKZ

3,408

84.5%

0.3%

0.1

7,324

2.9%

0.3%

(-0.0)

5,735

22.1%

0.3%

0.0

Lincoln Navigator

959

320.6%

0.1%

0.1

2,211

6.8%

0.1%

(-0.0)

1,777

87.2%

0.1%

0.0

Lincoln Town Car

811

-33.4%

0.1%

(-0.1)

3,075

-25.9%

0.1%

(-0.1)

2,515

-2.3%

0.1%

(-0.0)

Mazda B-Series

-100.0%

(-0.0)

-100.0%

(-0.0)

-100.0%

(-0.0)

Mazda Tribute

894

-22.1%

0.1%

(-0.0)

2,685

-33.7%

0.1%

(-0.1)

1,582

-48.0%

0.1%

(-0.1)

Mercury Grand Marquis

-100.0%

(-0.3)

2,469

-72.1%

0.1%

(-0.3)

-100.0%

(-0.4)

Mercury Mariner

-100.0%

(-0.2)

-100.0%

(-0.3)

-100.0%

(-0.2)

Mercury Milan

-100.0%

(-0.3)

316

-96.9%

0.0%

(-0.4)

-100.0%

(-0.4)

Mercury Mountaineer

-100.0%

(-0.1)

-100.0%

(-0.1)

-100.0%

(-0.0)

Fuji Heavy Industries (Japan)

22,153

24.2%

2.1%

0.2

62,778

17.4%

2.2%

0.1

44,465

20.9%

2.2%

0.1

Subaru Legacy

14,032

21.5%

1.3%

0.1

39,859

26.8%

1.4%

0.2

28,064

25.8%

1.4%

0.1

Subaru Tribeca

582

-0.9%

0.1%

(-0.0)

1,722

0.8%

0.1%

(-0.0)

1,254

2.3%

0.1%

(-0.0)

Toyota Camry

7,539

32.2%

0.7%

0.1

21,197

4.3%

0.7%

(-0.0)

15,147

14.4%

0.7%

0.0

General Motors Company (USA)

250,167

16.5%

23.6%

0.5

688,503

16.1%

23.6%

1.1

475,247

14.7%

23.1%

0.1

Buick Enclave

6,739

-5.5%

0.6%

(-0.1)

17,764

0.1%

0.6%

(-0.1)

12,483

-11.7%

0.6%

(-0.2)

Buick LaCrosse

6,624

11.2%

0.6%

(-0.0)

13,981

-8.7%

0.5%

(-0.1)

9,295

-6.7%

0.5%

(-0.1)

Buick Lucerne

2,817

611.4%

0.3%

0.2

7,943

240.6%

0.3%

0.2

5,686

1335.9%

0.3%

0.3

Cadillac CTS

5,323

0.5%

(-0.1)

15,469

12.2%

0.5%

0.0

11,169

8.1%

0.5%

(-0.0)

Cadillac DTS

1,041

205.3%

0.1%

0.1

3,713

141.7%

0.1%

0.1

2,192

542.8%

0.1%

0.1

Cadillac Escalade

1,313

-21.9%

0.1%

(-0.1)

3,657

-41.1%

0.1%

(-0.1)

2,732

-40.7%

0.1%

(-0.1)

Cadillac Escalade ESV

451

-56.0%

0.0%

(-0.1)

1,623

-26.9%

0.1%

(-0.0)

992

-43.7%

0.0%

(-0.0)

Cadillac Escalade EXT

226

29.1%

0.0%

0.0

629

21.0%

0.0%

0.0

461

29.9%

0.0%

0.0

Cadillac SRX

6,013

9.1%

0.6%

(-0.0)

18,198

18.4%

0.6%

0.0

12,113

15.2%

0.6%

0.0

Cadillac STS

424

22.9%

0.0%

0.0

986

17.2%

0.0%

0.0

669

-4.6%

0.0%

(-0.0)

Chevrolet Avalanche

1,696

17.7%

0.2%

0.0

5,065

7.4%

0.2%

(-0.0)

3,529

17.6%

0.2%

0.0

Chevrolet Aveo

4,455

4.3%

0.4%

(-0.0)

12,260

-7.8%

0.4%

(-0.1)

8,631

-1.9%

0.4%

(-0.1)

Chevrolet C2

3,803

-11.5%

0.4%

(-0.1)

9,111

-33.6%

0.3%

(-0.2)

6,937

-24.6%

0.3%

(-0.2)

Chevrolet Camaro

9,600

-4.1%

0.9%

(-0.2)

26,653

4.1%

0.9%

(-0.1)

19,578

13.6%

1.0%

(-0.0)

Chevrolet Captiva

2,907

48.2%

0.3%

0.1

7,585

17.6%

0.3%

0.0

5,140

12.8%

0.2%

(-0.0)

16 - 30 April 2011

N AMERICAN ASSEMBLY Feb 2011

Ownership Org/ Brand & Nameplate

Auto Monitor

Last 3 Months

Volume

YOY % Chg

Assembly Share %

YOY Share Chg

Volume

Year to Date YOY % Chg

Assembly Share %

YOY Share Chg

Volume

YOY % Chg

Assembly Share %

YOY Share Chg

Chevrolet Cobalt

-100.0%

(-1.8)

-100.0%

(-1.8)

-100.0%

Chevrolet Colorado

3,216

81.7%

0.3%

0.1

9,029

37.6%

0.3%

0.1

6,516

34.5%

0.3%

(-1.8) 0.0

Chevrolet Corvette

1,222

-22.9%

0.1%

(-0.1)

2,453

-24.3%

0.1%

(-0.0)

1,601

-40.0%

0.1%

(-0.1)

Chevrolet Cruze

22,618

2.1%

2.1

64,028

2.2%

2.2

44,932

2.2%

2.2

Chevrolet Equinox

20,077

45.7%

1.9%

0.4

54,881

49.3%

1.9%

0.5

39,176

49.3%

1.9%

0.4

Chevrolet Express

5,610

14.0%

0.5%

(-0.0)

16,582

38.2%

0.6%

0.1

11,663

44.7%

0.6%

0.1

Chevrolet HHR

5,490

-1.4%

0.5%

(-0.1)

16,925

-1.5%

0.6%

(-0.1)

11,863

7.9%

0.6%

(-0.0)

Chevrolet Impala

16,389

-0.8%

1.5%

(-0.2)

47,487

10.2%

1.6%

(-0.0)

34,538

12.2%

1.7%

(-0.0)

Chevrolet Malibu

18,207

17.4%

1.7%

0.0

42,294

11.6%

1.5%

0.0

25,814

-4.8%

1.3%

(-0.2)

Chevrolet Silverado

41,190

14.3%

3.9%

0.0

109,151

1.5%

3.7%

(-0.3)

72,761

1.4%

3.5%

(-0.4)

Chevrolet Suburban

2,977

-32.9%

0.3%

(-0.2)

10,426

-18.2%

0.4%

(-0.1)

6,349

-25.0%

0.3%

(-0.2)

Chevrolet Tahoe

7,102

-15.7%

0.7%

(-0.2)

21,932

4.3%

0.8%

(-0.0)

15,466

3.8%

0.8%

(-0.1)

Chevrolet Traverse

9,325

548.0%

0.9%

0.7

25,289

1657.4%

0.9%

0.8

18,363

1176.1%

0.9%

0.8

Chevrolet Volt

624

0.1%

0.1

1,647

0.1%

0.1

1,204

0.1%

0.1

GMC Acadia

6,685

6.6%

0.6%

(-0.0)

21,798

4.2%

0.7%

(-0.0)

14,670

-9.6%

0.7%

(-0.2)

GMC Canyon

929

24.7%

0.1%

0.0

2,591

-14.4%

0.1%

(-0.0)

1,779

-21.0%

0.1%

(-0.0)

GMC Savana

2,735

20.1%

0.3%

0.0

6,427

47.0%

0.2%

0.1

4,860

45.7%

0.2%

0.1

GMC Sierra Pickups

16,717

18.4%

1.6%

0.1

44,932

8.0%

1.5%

(-0.0)

29,481

-1.4%

1.4%

(-0.2)

GMC Terrain

9,026

61.0%

0.9%

0.2

25,116

63.1%

0.9%

0.3

18,545

75.8%

0.9%

0.3

GMC Yukon

3,788

-5.8%

0.4%

(-0.1)

12,560

23.9%

0.4%

0.0

8,755

28.2%

0.4%

0.0

GMC Yukon XL

2,355

-12.8%

0.2%

(-0.1)

7,865

13.7%

0.3%

0.0

4,851

-4.3%

0.2%

(-0.0)

Hummer H3

-100.0%

(-0.0)

-100.0%

(-0.0)

Hummer H3T

-100.0%

(-0.0)

-100.0%

(-0.0)

Saab 9-4X

453

0.0%

0.0

453

0.0%

0.0

453

0.0%

0.0

Saturn Outlook

-100.0%

(-0.1)

-100.0%

(-0.0)

-100.0%

(-0.1)

Saturn VUE

-100.0%

(-0.1)

-100.0%

(-0.1)

-100.0%

(-0.1)

Honda Motor Company (Japan)

110,417

7.1%

10.4%

(-0.7)

310,573

5.3%

10.7%

(-0.5)

222,340

8.8%

10.8%

(-0.5)

Acura CSX

991

229.2%

0.1%

0.1

1,260

61.5%

0.0%

0.0

1,140

123.5%

0.1%

0.0

Acura MDX

5,138

4.1%

0.5%

(-0.0)

14,594

-1.7%

0.5%

(-0.1)

11,250

6.0%

0.5%

(-0.0)

Acura RDX

1,577

14.3%

0.1%

0.0

5,218

7.3%

0.2%

(-0.0)

3,601

6.1%

0.2%

(-0.0)

Acura TL

1,559

-48.7%

0.1%

(-0.2)

5,290

-50.8%

0.2%

(-0.2)

3,411

-49.9%

0.2%

(-0.2)

Acura ZDX

181

-82.8%

0.0%

(-0.1)

450

-81.7%

0.0%

(-0.1)

330

-82.2%

0.0%

(-0.1)

Honda Accord

24,708

3.6%

2.3%

(-0.2)

70,193

6.6%

2.4%

(-0.1)

49,375

7.4%

2.4%

(-0.1)

Honda Civic

23,868

0.6%

2.3%

(-0.3)

67,805

-4.4%

2.3%

(-0.4)

50,046

5.8%

2.4%

(-0.2)

Honda Crosstour

1,869

-50.6%

0.2%

(-0.2)

4,152

-65.7%

0.1%

(-0.3)

3,370

-56.1%

0.2%

(-0.3)

Honda CR-V

20,276

5.6%

1.9%

(-0.2)

61,424

19.1%

2.1%

0.1

42,469

11.9%

2.1%

(-0.0)

Honda Element

2,160

89.5%

0.2%

0.1

6,222

67.3%

0.2%

0.1

4,259

61.4%

0.2%

0.1

Honda Odyssey

12,288

33.5%

1.2%

0.2

33,826

32.7%

1.2%

0.2

23,876

36.8%

1.2%

0.2

Honda Pilot

13,934

51.3%

1.3%

0.3

35,781

39.6%

1.2%

0.3

26,025

47.6%

1.3%

0.3

Honda Ridgeline

1,868

-18.0%

0.2%

(-0.1)

4,358

-26.6%

0.1%

(-0.1)

3,188

-29.0%

0.2%

(-0.1)

Hyundai Motor Company (South Korea)

49,145

54.0%

4.6%

1.2

133,237

74.1%

4.6%

1.7

95,100

62.9%

4.6% 1.4

Hyundai Elantra/i30

9,240

0.9%

0.9

28,603

1.0%

1.0

17,274

0.8%

0.8

Hyundai Santa Fe

8,573

15.9%

0.8%

0.0

27,602

16.0%

0.9%

0.0

16,594

15.1%

0.8%

0.0

Hyundai Sonata/i40

18,760

28.2%

1.8%

0.2

44,657

78.4%

1.5%

0.6

37,272

51.2%

1.8%

0.4

Kia Sorento

12,572

27.0%

1.2%

0.1

32,375

16.9%

1.1%

0.1

23,960

24.1%

1.2%

0.1

Mitsubishi Motors Corp (Japan)

4,124

46.6%

0.4%

0.1

9,358

22.3%

0.3%

0.0

7,645

38.8%

0.4%

0.1

Mitsubishi Eclipse

913

30.2%

0.1%

0.0

1,432

99.2%

0.0%

0.0

1,133

60.0%

0.1%

0.0

Mitsubishi Endeavor

265

-62.4%

0.0%

(-0.1)

1,025

-48.0%

0.0%

(-0.0)

664

-54.1%

0.0%

(-0.0)

Mitsubishi Galant

2,946

109.2%

0.3%

0.1

6,901

39.1%

0.2%

0.0

5,848

74.5%

0.3%

0.1

Nissan Motor (Japan)

89,270

15.9%

8.4%

0.1

257,310

15.6%

8.8%

0.4

181,500

18.3%

8.8%

0.3 (-0.1)

Infiniti QX series

-100.0%

(-0.1)

-100.0%

(-0.1)

-100.0%

Nissan Altima

25,508

9.0%

2.4%

(-0.1)

69,775

4.2%

2.4%

(-0.1)

48,878

8.0%

2.4%

(-0.1)

Nissan Armada

1,548

0.1%

(-0.0)

6,145

37.5%

0.2%

0.0

3,722

28.3%

0.2%

0.0

Nissan Frontier

4,422

6.8%

0.4%

(-0.0)

11,747

-0.7%

0.4%

(-0.0)

8,541

3.5%

0.4%

(-0.0)

Nissan March

672

0.1%

0.1

672

0.0%

0.0

672

0.0%

0.0

Nissan Maxima

6,006

1.4%

0.6%

(-0.1)

16,903

1.8%

0.6%

(-0.1)

11,592

2.5%

0.6%

(-0.1)

Nissan NV-Series

754

0.1%

0.1

953

0.0%

0.0

953

0.0%

0.0

Nissan Pathfinder

3,231

104.0%

0.3%

0.1

9,891

95.3%

0.3%

0.1

6,755

113.0%

0.3%

0.2

Nissan Pickup

3,345

78.7%

0.3%

0.1

9,603

55.0%

0.3%

0.1

7,474

80.9%

0.4%

0.1

Nissan Sentra

14,634

29.7%

1.4%

0.2

44,792

42.3%

1.5%

0.3

31,592

44.0%

1.5%

0.3

Nissan Tiida

5,296

39.2%

0.5%

0.1

16,364

45.1%

0.6%

0.1

11,451

42.9%

0.6%

0.1

Nissan Titan

2,412

4.8%

0.2%

(-0.0)

6,016

-15.6%

0.2%

(-0.1)

4,464

-11.6%

0.2%

(-0.1)

Nissan Tsuru

6,605

12.8%

0.6%

(-0.0)

19,394

18.5%

0.7%

0.0

13,839

20.5%

0.7%

0.0

Nissan Versa

12,356

-3.0%

1.2%

(-0.2)

38,181

1.1%

1.3%

(-0.1)

26,718

-0.4%

1.3%

(-0.2)

Nissan Xterra

2,351

22.7%

0.2%

0.0

6,444

23.5%

0.2%

0.0

4,569

21.9%

0.2%

0.0

Suzuki Equator

130

85.7%

0.0%

0.0

430

138.9%

0.0%

0.0

280

115.4%

0.0%

0.0

NUMMI (USA)

-100.0%

(-3.2)

-100.0%

(-3.3)

-100.0%

(-3.3)

Toyota Corolla

-100.0%

(-2.2)

-100.0%

(-2.3)

-100.0%

(-2.2)

Toyota Tacoma

-100.0%

(-1.0)

-100.0%

(-1.1)

-100.0%

(-1.0)

Tesla Motors (USA)

147

113.0%

0.0%

0.0

354

94.5%

0.0%

0.0

295

118.5%

0.0%

0.0

Tesla Roadster

147

113.0%

0.0%

0.0

354

94.5%

0.0%

0.0

295

118.5%

0.0%

0.0

Toyota Motor Corporation (Japan)

108,244

40.2%

10.2%

1.9

316,145

21.5%

10.8%

1.0

222,815

26.2%

10.8%

1.0

Lexus RX Series

6,719

1.6%

0.6%

(-0.1)

18,561

-3.2%

0.6%

(-0.1)

13,365

-0.9%

0.6%

(-0.1)

Toyota Avalon

3,605

119.1%

0.3%

0.2

10,166

59.9%

0.3%

0.1

7,323

68.8%

0.4%

0.1

Toyota Camry

17,243

-20.3%

1.6%

(-0.7)

52,600

-31.0%

1.8%

(-1.1)

36,327

-28.6%

1.8%

(-1.1)

Toyota Corolla

19,301

112.6%

1.8%

0.8

54,244

41.5%

1.9%

0.4

38,916

61.4%

1.9%

0.6

Toyota Highlander

9,493

132.1%

0.9%

0.5

27,290

70.0%

0.9%

0.3

19,544

92.5%

0.9%

0.4

Toyota Matrix

1,303

-57.4%

0.1%

(-0.2)

4,635

-55.4%

0.2%

(-0.2)

3,248

-56.9%

0.2%

(-0.3)

Toyota RAV4

14,148

178.6%

1.3%

0.8

40,630

116.4%

1.4%

0.7

28,749

133.0%

1.4%

0.7

Toyota Sequoia

1,421

4.3%

0.1%

(-0.0)

4,662

-12.6%

0.2%

(-0.0)

2,921

-13.7%

0.1%

(-0.0)

Toyota Sienna

11,600

46.1%

1.1%

0.2

34,070

107.6%

1.2%

0.5

23,746

65.5%

1.2%

0.4

Toyota Tacoma

9,813

125.4%

0.9%

0.5

33,076

164.2%

1.1%

0.7

21,091

142.2%

1.0%

0.5

Toyota Tundra

8,846

45.2%

0.8%

0.2

24,612

17.0%

0.8%

0.0

18,888

36.8%

0.9%

0.2

Toyota Venza

4,752

-24.0%

0.4%

(-0.2)

11,599

-40.5%

0.4%

(-0.3)

8,697

-35.2%

0.4%

(-0.3)

Volkswagen (Germany)

41,113

28.1%

3.9%

0.4

117,626

37.9%

4.0%

0.8

77,072

35.9%

3.7%

0.6

Volkswagen Bora

-98.2%

0.0%

(-0.2)

138

-97.3%

0.0%

(-0.2)

-98.6%

0.0%

(-0.2)

Volkswagen Golf/Jetta Variant

12,325

60.6%

1.2%

0.3

35,248

72.4%

1.2%

0.4

23,106

74.0%

1.1%

0.4

Volkswagen Jetta

28,758

60.6%

2.7%

0.8

82,240

72.4%

2.8%

1.0

53,913

74.0%

2.6%

0.9

Volkswagen New Beetle

-100.0%

(-0.5)

-100.0%

(-0.5)

-100.0%

(-0.5)

Total Light Vehicle

1,060,468

14.0%

100.0%

2,914,074

10.7%

100.0%

2,060,481

14.1%

100.0%

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PRODUCT INDEX Product ............................................................ pg no.

E-coatings solutions ..................................................................... FIC

Quality steel.................................................................................. 13

3d coordinate measuring machine .............................................. 21

Egr valve ....................................................................................... 34

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

Acc. Padel sensor assy. ................................................................. 34

Electronic control unit.................................................................. 34

Roundness .................................................................................... 21

Adaptors ....................................................................................... 41

Engine test setup .......................................................................... 47

Scada & dcs implimentaion ......................................................... 20

ADEA-Automotive Dealership Excellence Awards ........................ 42

Engine valves ................................................................................ 31

Sealer dispensing system.............................................................. 30

Analytical instruments ................................................................. 32

Envirnmental monitoring systems ............................................... 32

Seat assemblies ............................................................................ 23

Automatic painting system........................................................... 30

Exhibition-engineering expo........................................................ 3

Seat belt systems .......................................................................... 31

Automation................................................................................... 20

Expandable mono block-reamers ................................................ 41

Self adhesive tapes ....................................................................... 18

Automotive electrical components .............................................. 23

Extension springs ......................................................................... 5

Solid carbide drills........................................................................ 37,41

Bearings for automotive............................................................... 39

Factory automation ...................................................................... 20

Solid carbide drills with ic ............................................................ 37

Brake linings ................................................................................. 31

Five axis machining centers and four axis horizontal machining centers .. 33

Solid carbide mills ........................................................................ 37

Brake shoe .................................................................................... 19

Fluidized bed coating machines. ................................................. 20

Solid carbide reamers .................................................................. 37

Building automation .................................................................... 20

Form&cylindercity testers ............................................................ 21

Solid carbide reamers with ic ....................................................... 37

Buses............................................................................................. 9

Gear box test rig ........................................................................... 47

Solid carbide special drills ........................................................... 37

Car paints...................................................................................... 14

Glide coating machines ................................................................ 20

Solid carbide special mills ............................................................ 37

Car polish...................................................................................... 14

Gun drills ...................................................................................... BIC

Solid carbide special reamers ...................................................... 37

Ced coating machines................................................................... 20

Hollow bars................................................................................... 17

Solid mono block reamers ........................................................... 41

Ced/ktl coatings ............................................................................ FIC

Horizontal CNC machines ............................................................. 45

Special boring bars ....................................................................... 41

Chemlok coating machines .......................................................... 20

Horizontal machining center ....................................................... 45

Special ﬁne boring tools ............................................................... 41

Clamps .......................................................................................... 11

Hot,Cold & warm forged machined parts .................................... 23

Special reaming tools ................................................................... 41

Clutch plates ................................................................................. 19

IC engine valves ............................................................................ 23

Special theard milling tools.......................................................... 41

CNC ............................................................................................... 45

Imaging & vision systems ............................................................. 20

Spray guns .................................................................................... 30

CNC cutting machines................................................................... 20

Industrial metrology .................................................................... 21

Spray painting equipment............................................................ 14

CNC hmcs ...................................................................................... 45

Industrial scientiﬁc instruments .................................................. 32

Standard & special pcd-tools........................................................ 41

CNC laser cutting machines .......................................................... 20

Instrumentation & controls.......................................................... 29

Standard ﬁne boring tools............................................................ 41

CNC lathes ..................................................................................... BC

Lightweight diesel engines for automotive applications ............. 25

Standard theard milling tools ...................................................... 41

CNC machines ............................................................................... 45

Lightweight petrol ........................................................................ 25

Strip steel ...................................................................................... 13

CNC oval turning centers .............................................................. 45

Lubricants ..................................................................................... 19

Super finishing film - variofilm..................................................... 18

CNC oxy fuel cutting machines ..................................................... 20

Machine tools ............................................................................... 7

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

CNC plasma cutting machines ...................................................... 20

Machinery steel ............................................................................ 13

Taps(cold forming/nss).................................................................. 41

CNC turn mill centers.................................................................... 45

Marking solutions ......................................................................... 28

Testing & safety technology ......................................................... 8

CNC turning center ....................................................................... 45

Material handling ......................................................................... FGF

Threading tools............................................................................. 41

CNC vertical machining center ..................................................... 45

Metal cutting tools ....................................................................... 37

Tool bits ........................................................................................ 13

CNC/vmc machines ....................................................................... 15

Milling cutters............................................................................... BIC

Tool steel ...................................................................................... 13

Coating machines ......................................................................... 20

Modular tooling system ................................................................ BIC

Torsion springs ............................................................................. 5

Coating plants............................................................................... 20

Multi gauging systems .................................................................. 21

Turneykey solutions...................................................................... 41

Coating systems ............................................................................ 20

Opto-electropnic systems............................................................. 21

Turning machine solutions ........................................................... 27

Commercial vehicles..................................................................... 9

Paint circulatin system ................................................................. 30

Turrets .......................................................................................... BC

Compaction & concreting equipment. ......................................... 25

Paint pumps ................................................................................. 30

Tyre chanding accessories ............................................................ 18

Compression springs .................................................................... 5

Paint shop equipments ................................................................ 20

Tyre repair tools............................................................................ 18

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

Paint shop machines .................................................................... 20

Tyre service tools .......................................................................... 18

Cutting machines.......................................................................... 20

Pcd &carbide reamers .................................................................. 41

Uabos tooling system ................................................................... 41

Cylindrical grinders ...................................................................... BC

Physical testing & measuring equipments ................................... 32

Vaccum pump ............................................................................... 34

Diamond tools .............................................................................. BIC

Plastic moulded components....................................................... 23

Vehicle testing dynamometer ...................................................... 47

Die-casting.................................................................................... 10

Powder coating system................................................................. 30

Ventilators .................................................................................... 18

Dies ............................................................................................... 10

Power chucking cylinders............................................................. BC

Vertical line series ........................................................................ 45

Diesel engines (10-1000hp) .......................................................... 25

Power steering systems ................................................................ 31

Vertical machining centers........................................................... BC

Diesel/kerosene engines. Power sprayer ..................................... 25

Power tiller ................................................................................... 25

Vmc-linear series .......................................................................... 45

Dip spin coating machines ........................................................... 20

Powertrain gauging ...................................................................... 35

Vse ﬂowmeters ............................................................................. 6

Drilling tools ................................................................................. BIC

Pre tereatment systems ................................................................ 20

Wheel alignment accessories ....................................................... 18

Drills ............................................................................................. 41

Precision ....................................................................................... 10

Wheel balancing accessories ........................................................ 18

Drying & curing technology for water based paints .................... 43

Pumpsets and power reapers....................................................... 25

Wire forms .................................................................................... 5

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

Auto Monitor

THE OTHER SIDE

Getting Personal

16 - 30 April 2011

In Person

With Simone Niccolai, Managing Director, APAC, Maserati

If not in the auto industry, where would you be? I like this industry and would not be anywhere else What car do you drive? What do you dream of driving? I dream to drive Quattroporte. Your most recent indulgence… Vacation with family. What are you currently reading? Shift by Charlos Ghosn on the automotive What is Mr Nicolai doing when not talking auto? Spending time with family Outdoor activity you would miss office for… Sports especially running. I also take Yoga lessons Where did you go for your last holiday? Philippines You get angry when… I am a joyful and easy going person. I don’t get angry What is the one thing you would like to change about you? I won’t like to change anything Best thing to have happened to you… My family

An experience I won’t forget…

Illustration: Sachin Pandit

The birth of my daughter

Simone Niccolai joined Maserati Asia Pacific in March 2008. He is a successful commercial manager with a vast experience in business development, product marketing, brand development, trade, distribution, finance and an extensive business management background operating in multi-national environments and across cultures. Niccolai was previously Business Development and Sales Director Worldwide Maserati Importers at Ferrari Maserati Group , Italy. He joined in February 2003 and successfully discharged his dutiess for over five years. olai was European Prior to joining Maserati, Niccolai Business Development and Sales Director TwoWheeled Vehicle Importers, Piaggio and C SpA, pany as Area London, UK. He had joined the company Sales Manager and Marketing Analystt and served his position. the company for over two years in this olving abiliOwing to his exceptional problem solving ties, profit oriented business sense with a strong al communidegree of leadership and interpersonal cation skills he was promoted to the position of es UK Business Development and Sales e Director. For over six years of service with the company, Niccolai put in his efforts and took the company to great heights with his abilities and hard work. Niccolai has completed his education from London Business School, Oxford Academy and

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