Auto Monitor - 16-30 November 2010 by Infomedia18

I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S

Auto Monitor Vol. 10 No. 21

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

16-30 November 2010

` 50/-

AUTONOMICS

INTERVIEW ‘LOW ABS INSTALLATION BASE IN MOTORCYCLES PRESENT A HUGE OPPORTUNITY FOR US IN INDIA’ Andreas Berg, Regional President - India, Bosch Chassis Systems India

64 Pages

THIRD PARTY LOGISTICS: A STRONG CASE FOR REVENUES Pg 14 TO TREBLE BY FY15

Pg 08

German major developing ‘affordable car’ products NEWS IN BRIEF

Continental Tech Centre to become R&D hub for emerging markets

Bookings open for Nissan Micra Diesel Within six months of the launch of its petrol variant, Nissan Motor India (NMIPL) recently announced the launch of the diesel-powered Nissan Micra before Christmas this year. Bookings for the diesel Micra have commenced across NMIPL’s 20 dealerships around the country. A comprehensive multimedia ad campaign (TV, radio, print and digital) has also been launched to support this activity. The company has sold around 4,500 units of the Micra till date since sales began on 15 July, 2010.

Shobha Mathur Bangalore

erman component maker Continental is developing its Technical Centre India at Bommanahalli in Bangalore, into an engineering and research and development (R&D) hub for the emerging markets. Under development currently

are products designed and customised for the ‘affordable car’, as part of Continental’s global Affordable Car Strategy. These would cater to the requirements of emerging markets like India, China and Brazil in three specific areas: chassis and safety, powertrain

and interiors. Orders for the new cost competitive products for the affordable car have already been bagged by the captive technical centre of Continental Automotive Components India (CACIL). Customers span 20 to 30 original equipment manufacturers from the emerging markets of which about 10 percent are Indian OEMs. Products developed under the affordable car programme, are expected to cost about

Tata Motors Finance to fund Fiat cars Tata Motors Finance, a subsidiary of Tata Motors, will extend finance to all Fiat cars in India, offering prospective customers benefits of quick loan approvals, higher quantum of funding, competitive rates and across-the-counter services, a company release stated. Tata Capital, the other Tata Group subsidiary, has been fi nancing Fiat cars since 2009. Tata Motors Finance will support Fiat through its 140 branches that will cover approximately 1,000 locations and dealer outlets.

DATA MONITOR Domestic Sales Sector

Apr-Oct 09

Apr-Oct 10

Change

1,053,264

1,408,475

33.72%

263,963

363,675

37.77%

247,738

299,131

20.74%

5,220,399

6,754,133

29.38%

TOTAL

6,785,364

8,825,414

30.07%

Exports Sector

Apr-Oct 09

Apr-Oct 10

Change

250,212

254,621

1.76%

21,283

40,267

89.20%

80,264

156,756

95.30%

616,513

917,900

48.89%

TOTAL

968,272

1,369,544

41.44%

* Source: SIAM / ** all sub segments considered

40 to 50 percent lower than prices prevailing in the developed markets. ‘At present, the products are in the ‘before concept proof stage’. We have a wide product portfolio in all three divisions for affordable cars and have already been awarded the business. We can go into start of production for the fi rst product in 2012 and for the remaining two products in 2013,’ confi rmed Head of Technical Center India and Director Affordable Cars Strategy, Continental, Joachim Nell. The products would be produced at CACIL’s electronics manufacturing facility at Bommasandra in Bangalore. Continental currently has production facilities in India at Manesar, Pune, Bangalore, Sonepat and Kolkata. Elaborating on the affordable car strategy, Nell told Auto Monitor that an affordable car according to Continental was clearly defi ned by its price and the displacement volume of the combustion engine and encompassed a less than 1.6 litre engine

Contd. on P30

Festive demand accelerates automobile sales Our Bureau New Delhi

riving on festive demand, new launches and availability of credit saw vehicle makers selling a record number of passenger cars in October 2010. As per data made available by the Society of Indian Automobile Manufacturers (SIAM), sales jumped 38 percent to 182,992 units in October from 132,615 a year earlier. Overall, October 2010 recorded a year-on-year growth of 45.93 percent, as compared to October 2009 buoyed by 50.38 percent growth in two-wheelers, 18.17 percent growth in commercial

vehicles and 25.32 percent jump in three-wheeler sales. In the April-October 2010 period, automobile sales increased 30.07 percent to clock 8,825,414 units as against 6,785,364 units in the corresponding period last year. Of the 8,825,414 units sold during the fi rst seven months of the current fiscal, 1,460,655 were sold only in October. The growth in the AprilOctober period was led by passenger vehicles and commercial vehicles, which registered growth of 33.72 percent and 37.77 percent respectively. Twowheelers and three-wheelers recorded growth of 29.38 percent and 20.74 percent respectively.

A total of 1,408,475 units of passenger vehicles (PV) were sold as compared to 1,053,264 in the same period last year. Of this, passenger cars contributed 1,105,273 units, registering a growth of 34.29 percent of the same period last year. While Multi Purpose Vehicles (MPVs) showed a remarkable growth of 50.45 percent, selling 119,377 units, Utility Vehicles grew by 21.85 percent selling 183,825 units in the domestic market. Medium & Heavy Commercial Vehicle (M&HCV) sales grew by 53.19 percent, registering 173,003 units in sold in the last seven months as compared to 112,931

No Nano recall, claims Tata Motors

ata Motors recently issued a clarification slamming reports on recall of the Nano pointing to rectify defects in the vehicle, categorically denying that the call back of vehicle can be termed as a ‘recall’. Citing its

Contd. on P32

VISIT, EXPERIENCE, GROW BUSINESS THE WAY WE DO AT

PUNE-19-22 NOV 2010 Venue: Auto Cluster Exhibition Centre, Pimpri - Chinchwad Industrial Area

9920401226 | www.engg-expo.com

Vehicle interiors/ exteriors by IAC. Our heritage, your advantage. www.IACGroup.com

Instrument Panel Assemblies, Cockpit Modules Wiper Panels, Windshield Access Handle Floor Consoles, Glove Box Assemblies Footsteps, Wheel Liners, Mud Guards Headliners, Floor Carpets Door Trim, Front Grills IAC International Automotive India Pvt. Ltd. Plot No. 3, Rajiv Gandhi Infotech Park Phase - 1 Pune, Pin Code 411 057 Maharashtra, India Phone: +91 (20) 66 53 8500

CONTENTS CORPORATE Quarterly results indicate auto recovery gaining momentum

Emitec India to grow presence in CV segment, reach newer markets

Scooter sales lead two-wheeler recovery this fiscal

Recovery in automotive segment is evident from second quarter results but higher raw material and other costs are pinching margins of automobile suppliers

Emitec India is looking to serve Indian customers in two-wheeler segment with latest technology in material and system integration and enhance presence in the CV segment

Two-wheeler segment sustains its double digit growth this fiscal aided by scooter sales outpacing the overall two-wheeler volume growth

BSA Motors reworking service, technology strategy for e-scooters

BSA Motors is undertaking several initiatives in an effort to improve and upgrade its existing product portfolio

BMW Motorrad announces India foray, sales to begin by December

BMW Motorrad will introduce its premium range of motorcycles in the Indian market by December this year in `18 lakh and above price bracket

Royal Enfield targets 6,000 units per month by 2011

Royal Enfield is optimising existing capacity at its Chennai facility to reach an average output of 6,000 motorcycles per month by 2011

Hyosung looks for second innings in India with Garware Motors

GLOBAL WATCH GM could make $13 billion a year

GM to build small Cadillac in Lansing, invest $190 million

Nissan second quarter profit jumps to $1.2 billion

Marchionne charts blueprint for Chrysler

GM sounds out investors in the run up to its IPO touting its earning potential pointing to US auto sales getting back to ‘normal levels’ & sustainable growth potential in China

GM plans to build a compact-sized Cadillac at its Grand River Assembly plant in Lansing with investment of $190 million and employing estimated 600 people

Nissan raised its full-year forecast after reporting a surge in quarterly profit as rising vehicle sales more than offset the drag from a strong yen

Chrysler’s Jefferson North Assembly Plant would be the only factory to build versions of SUVs for as many as four brands: Chrysler, Dodge, Alfa Romeo and Maserati

After its earlier stint with Kinetic Motors, Korea’s S&T Motors teams up with Garware Motors for introducing Hyosung motorcycles in India in the 650-700 cc range

THE OTHER SIDE

INTERVIEW

16 08

Bosch India commits `1,500 crore investment in automotive sector

‘Accessibility the key driver in making the India investment’

Managing Director, Bosch India, VK Viswanathan speaks to Auto Monitor on the company’s investment, new business and expansion plans in India

Rohit Saboo, Chief Executive Officer, National Engineering Industries

An engineer and a management graduate, Saboo is credited with turnaround of NEI and putting it on the growth path

Managing Director, Harley-Davidson India, Anoop Prakash gives Auto Monitor a first hand opinion on the company’s objective and plans

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Auto Monitor

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VISIT, EXPERIENCE, GROW BUSINESS THE WAY WE DO AT

PUNE-19-22 NOV 2010 Venue: Auto Cluster Exhibition Centre, Pimpri - Chinchwad Industrial Area

9920401226 | www.engg-expo.com

Auto Monitor

16 - 30 November 2010

CORPORATE

Quarterly results indicate auto recovery gaining momentum Our Bureau Mumbai

f the second quarter and half yearly results of automobile and auto component companies are any indication, sentiments seem buoyant and momentum gain in recovery are amply evident. Though higher raw material cost, especially for tyre manufacturers, are pinching margins of automobile suppliers but underlying strength of recovery is unmistakable. We take a look at some of the prominent companies to have declared their results in the last fortnight and more:

Tata Motors’ Revenues Grow 36.5 Percent Tata Motors (TML) reported consolidated revenues for the quarter ended September at `28,782 crore, a growth of 36.5 percent over `21,088 crore in the corresponding quarter of the previous year. The consolidated profit before tax (PBT) for the quarter stood at `2,523 crore, compared to a PBT of `287 crore notched in the corresponding quarter last year. The consolidated revenues for the half year ended September stood at `55,838 crore, a growth of 48.7 percent over `37,561 crore in the fi rst half last year. The consolidated profit for the half year was `4,212 crore as compared to a loss of `307 crore in the fi rst half last year. The Jaguar Land Rover business continued to show strong profitability, reporting a

profit after tax of £238 million (`1,715 crore).

M&M Net Grows 22 Percent Mahindra & Mahindra’s (M&M) gross revenues and other income for the second quarter ended September 2010 stood at `6,157.3 crore as against `5,156.8 crore during the corresponding period last year, a growth of 19.4 percent. The profit before tax for the quarter is `1,006.8 crore as against `862.5 crore in second quarter last year, a growth of 16.7 percent. The net profit for the current quarter stood `775.8 crore as against `634.2 crore in the corresponding period last year, resulting in a growth of 22.3 percent. The standalone gross revenues and other income of M&M during the half year ended September stood at `11,820.8 crore as against `9,868.5 crore in the corresponding period in the previous year, a growth of 19.8 percent. The utility vehicle major’s profit after tax for the fi rst half of the year stood at `1,338.2 crore as against `1035.0 crore in the corresponding period last year, a growth of 29.3 percent.

MSIL, HHML Continue Growth Trend Markets leader in the passenger car segment, Maruti Suzuki India (MSIL) registered net sales of `8,937.1 crore during the second quarter of FY11, a growth of 26.8 per cent over the same

period last year. Net profit during the second quarter of FY11 was `598.2 crore. This was an increase of five percent over the same period last year. ‘Though sales have picked up and are likely to remain in double digit growth trajectory in the coming quarters, maintaining profitability will be an issue,’ said an analyst commenting on the quarterly results of automobile manufacturers. He added that high commodity prices will dampen the profitability in the coming months for automobile and auto component players alike. On the other hand, the largest two-wheeler manufacturer in the world, Hero Honda Motors (HHML) registered a

ter stood at `75 crore and `31.2 crore respectively. The company has undertaken expansion plans for OTR (Off-The-Road) and car radials at its plants in Mysore and Chennai. This will take truck and bus radial capacity to 14 lakh tyres per annum from eight lakh tyres per annum currently. CEAT’s second quarter net sales, meanwhile, grew by 21.4 percent over the corresponding quarter last year. Net sales for the fi rst half of this fiscal stood at `1,604 crore.

Component Makers Report Sizeable Growth

Jay Bharat Maruti reported revenues of `291.92.crore in the second quarter this fi scal, from `204.96crore in the corresponding quarter last Though higher raw material fi scal, an increase of 42.43 percent. Earnings before cost are pinching margins interest, depreciation, tax of automobile suppliers and amortisation stood at but underlying strength of `26.46 crore, an increase of 65.79 percent as compared recovery is unmistakable to `15.96.crore in Q2FY10. Net profit for the quarter stood at `10.30 crore, up turnover of `4,551.95 crore as 133.03 percent from `4.42 crore compared to `4,069.60 crore – last year. the company’s turnover in the The company’s half yearly corresponding period last fi srevenue was at `541.62 crore, up cal – riding on quarterly sales of 35.91 percent from `398.50 crore 1,285,944 two-wheeler units in during the corresponding period the second quarter. last year. The company reported net profit of `15.82 crore, up 104.13 percent as against `7.75 crore JK Tyre, CEAT Sales Up in the same period last year. Jay Among tyre makers, JK Tyre Bharat Maruti is the major sup& Industries reported a 23 perplier of sheet metal components, cent increase in sales at `1,239 assemblies and sub-assemblies crore. Operating profit and profit to Maruti Suzuki India. before tax for the second quar-

Diversified automotive player, Bharat Forge notched `1,111 crore and `727 crore in the second quarter in consolidated and standalone revenues respectively. Stand-alone revenue and EBIDTA for the second quarter stood at `727 crore and `183 crore, a growth of 67.7 percent and 68.7 percent respectively. Combined revenue and EBITDA for the quarter was `1,111 crore and `194.3 crore, a growth of 56.3 percent and 105.4 percent respectively, the company stated in a release. Non-automotive contribution to the standalone business in the second quarter this fiscal stood at 38 percent as against 33 percent in the fi rst quarter. Sona Koyo Steering Systems announced net sales of `250.69 crore compared to `200.38 crore, resulting in a growth of 25 percent. Profit after tax stood at `7.50 crore up from a profit of `3.71 crore during the corresponding period of the previous year. Another large player in the automotive business, Noidabased Motherson Sumi Systems notched up consolidated sales of `1,916.17 as compared to `1,587.84 crore in the corresponding quarter last year, a growth of 21 percent. The consolidated net profit stood at `85.98 crore as compared to `14.96 crore in the corresponding period last year. This resulted in a huge growth of 475 percent. The standalone sales of the company stood at `653.01 crore as compared to `388.83 crore in the corresponding quarter of the previous year, a growth of 68 percent.

Auto Monitor

16 - 30 November 2010

INTERVIEW

‘Low ABS installation base in motorcycles present a huge opportunity for us in India’ Bosch has renewed its focus on the two-wheeler segment in India with products aimed at enhancing safety and drive comfort. In a recent interaction with Auto Monitor, Regional President – India, Chassis Systems Control, Bosch Chassis Systems India, Andreas Berg elaborated on the company’s strategy for the two-wheeler market and growing safety consciousness among Indian customers. Excerpts: Abhishek Parekh What is your outlook on the two-wheeler segment in India? The domestic two-wheeler market has grown by 26 percent year-on-year, while exports of two-wheeler have grown by around 13 percent as per the data available from the industr y association (Society of Indian Automobile Manufacturers). We believe that this growth will continue over the next few years. Moreover, we believe that the top-end segment in the motorcycle segment (200 cc and above) will expand at a rapid pace in terms of volumes, even as the 125 cc segment is likely to grow but from a much higher base. How does t h is out look affect your business in t he Indian market? We are bracing up for higher safety consciousness among Indian Andreas Berg, Regional President – India, Chassis Systems Control, Bosch Chassis Systems India customers,

especially in the top-end segment. We are hoping for rapid adoption of the Antilock Braking Systems (ABS) in India. The adoption of ABS depends on the installation of disc brakes in motorcycles. Equipping even economy segment bikes with disc brakes implies growing opportunities for ABS installations. What is the reason for introducing ABS on two-wheelers at this stage in the Indian market, since the product has been in your global portfolio for long? Bosch has been manufacturing ABS for motorcycles since 1994, but until now all Antilock Braking Systems for motorcycles available in the market – from Bosch and other suppliers – have typically been carried over from passenger cars, with little adaptation to motorcycle requirements. In particular, due to the size, these ABS have been more or less restricted for motorcycles with high engine displacement. These motorcycles are typically sold in the developed markets in Europe, the US and Japan. In 2010, Bosch introduced ABS Generation 9 specifically designed and developed for motorcycles. The ABS opens up new dimensions in as far as it meets the special requirements regarding box volume and weight of motorcycles with medium to low displacement down to and including 125 cc capacity. These motorcycles are typically sold in growth markets like India and Brazil. As governments are increasingly paying attention to road

safety and setting clear targets in terms of a reduction in fatalities and injuries, two-wheeler safety is on the agenda of policymakers and OEMs. Depending on the region and country, motorcycle fatalities can represent up to 1/3 of total fatalities. Only recently, the European Commission proposed a legislation to mandate ABS for motorcycle from 125 cc upwards starting January 2017. And we believe that NHTSA of the US is investigating the potential of ABS as well. We believe that our Generation 9 can become an industry standard. What kind of response do you foresee for the product? In which segment of the Indian motorcycle market do you see a larger acceptance for ABS? We foresee a worldwide growth in the ABS installation rate for motorcycles in the next decade – in mature markets like Europe and the United States, but also in other growth markets because ABS as a technology for motorcycles offer the highest safety gain available. We expect that in the long run, ABS for motorcycles will become a world safety standard similar to the scenario in case of passenger cars. The effectiveness of motorcycle ABS to avoid or mitigate serious and fatal accidents under real driving conditions has been analysed in several European and international studies, indicating that the wider proliferation of ABS technology contributes significantly to riding safety.

By analysing a representative sample of 228 motorcycle accident cases from the German In-Dept h Accident Study (GIDAS), Bosch found that roughly 60 percent of motorcycle accidents with injuries or fatalities between 2001 and 2004 were caused by either insufficient or too strong braking. At least 26 percent of these accidents could have been prevented by an ABS. In 2008, the Insurance Institute for Highway Safety (IIHS) in the United States confi rmed that motorcycles above 250 cc equipped with ABS are 28 percent less involved in fatal crashes. Another study published by the Swedish Road Administration or Vagverket in 2009 came to the conclusion that 48 percent of all severe and fatal motorcycle accidents above 125 cc could be avoided due to motorcycle ABS. The worldwide ABS installation rate for motorcycles is estimated at below one percent. We believe that with the evidence available indicating the safety benefit of ABS to reduce severe and fatal motorcycle accidents, its installation rate will have to grow. A 2008 report on road accidents in India by the Transport Research Wing of the Indian Ministry of Road Transport and Highways indicates that 21 percent of road deaths in India are motorcyclists. In India, we see a strong potential for our safety systems in two-wheelers, especially in 250 cc segment as motorcycles below that capacity still have drum brakes mainly.

EDITORIAL Shaping the future T

he fi rst week of November was all about the India visit of American President Barack Obama. Unprecedented in many aspects, this visit was aimed at straightening out years of misunderstandings and misperceptions about what the two countries can do together. The effort was to build mutual trust and strengthen collaboration on various subjects of interest. Technology, among others, is a key area. Experts believe President Obama’s visit reflected a new beginning in the area of technology cooperation covering numerous areas like nuclear, space, defence, energy, IT, healthcare, education, training, research, among several others. As far as the automotive industry is concerned, the most critical aspect in this collaboration should be in the area of research and development. For decades, universities, research organisations and corporate R&D centres in the United States have been leading in technological development in the automotive field, together with the European and Japanese automotive industries. It is here that India is set to play an increasingly important role. Indians are already a large part of the US’ research infrastructure, with several thousand working in the fields of basic research, engineering and manufacturing. In practice, a recent article mentioned, ‘India and Indians are already part of this

process of discovery, invention, development, research and application’. In fact, in recent times, there have been a lot of American, European and Japanese auto component players, who have set up technical or research and development centres in India. And there are good reasons for that. It is but logical to have your development centre close to the manufacturing location. What also helps is the availability of quality manpower that could do the job required. The other important strength is the availability of rich minerals in India. As most companies focus on offering cost competitive and lightweight products, the choice of materials too could be a critical differentiator. Most recently, Japanese major, Denso, announced setting up of a new technical centre in Gurgaon, Haryana. In fact, early this month, the company also announced a technical centre in Brazil – both to come up in 2011. The strategy seems clear for the Japanese multinational – be where the market is, be where the growth is. Similarly, German behemoth Continental too has a technical centre in Bangalore, which it now plans to develop into an engineering and R&D centre catering to all the emerging markets globally. The objective like most others is to develop cost competitive products for manufacturers in emerging markets. So, as the world starts seeing the engi-

neering and R&D potential in India and Indian companies, the Indian industry and academia should gear up to take on the mettle of offering global expectations at the right quality and right price. India as an industry is known for its engineering might and capability. What is critical though is to be able to offer the world the quality that is expected. As a country, India produces several lakh engineers a year, but concerns about the employability of these engineers have been raised by many on various platforms. This is one aspect that needs a collective vision – by the Government, academia and the industry. Right moves in that direction will certainly help shape India’s future.

Deepangshu Dev Sarmah deepangshud.sarmah@infomedia18.in

IMAGE of the fortnight

FORTNIGHT’S QUOTES ‘I’ve never seen a vehicle have this kind of support’ Sergio Marchionne, CEO, Fiat and Chrysler on Chrysler brand revival

‘We expect hybrids and plugin hybrids to replace most of the gasoline-powered vehicles we have today’

‘With a banking license we will be able to reach out to a lot more people, which Government can’t directly’

Takeshi Uchiyamada, Executive Vice President, Toyota

R Sridhar, Managing Director, Shriram Transport Finance

‘Just to clarify that this is not a recall...It is just to make the Nano more robust’

‘The auto market may be a mature industry but also very much a growth industry. The global market is expected to grow by another 50 mn in five years. Growth is accelerating’

P M Telang, Managing Director (India Operations), Tata Motors

Dieter Zetsche, CEO, Daimler

Auto Monitor Editorial Team Editor: Deepangshu Dev Sarmah Features Editor: Shobha Mathur Principal Correspondent: Abhishek Parekh Correspondent: Shambhavi Anand Contributing Editors: Sirish Chandran Bertrand D’Souza

Design & Photography Chief Photographer: Mexy Xavier Asst. Art Director: Varuna Naik Senior Designer: Ganesh Patere Scanning & Colour Correction: Ravikumar Potdar, Ravi Salian, Sanjay Shelar Production Team: Dnyaneshwar Goythale, Vikas Bobhate, Pravin Koyande Photographer: Mohd Nasir (New Delhi), Neha Mithbawkar, Joshua Navalkar

Send in your feedback and comments to: The Editor AUTO MONITOR, Infomedia 18 Ltd, 4th Floor, Prakashdeep building, 7 Tolstoy Marg, New Delhi – 110001. Ph: +91 11 6630 3282, Email: automonitor@infomedia18.in

Bugatti makes India debut at `16 crore The fastest, most powerful and most expensive street-legal full production car in the world, Bugatti Veyron 16.4 Grand Sport, was launched in India recently at a jaw-dropping price of `16 crore. The price of the car, however, will be subject to foreign exchange fluctuation and the levels of customisation that a buyer demands. Exclusive Motors is the sole distributor of the car in India. The vehicle, which can reach a top speed of 407 kmph and speed of 360 kmph with the roof off, is available in a choice of materials – titanium, carbon fibre, magnesium, and aluminium – with the lowest weight and the highest level of functionality. In case it rains, an innovative folding roof stored in the luggage compartment can be opened up like an umbrella at any time. When this folding roof is in place, the car can travel at up to 130 kmph. Sales Market Manager (Middle East, Europe and India), Bugatti Automobiles, Guy Caquelin views India as an emerging market for the vehicle with a 7,993 cc engine that produces 1,001 hp of peak power at 6,000 rpm, and 1,250 Nm of torque at a rpm range of 2,200-5,500.

Auto Monitor

Bajaj Auto raises stake in KTM

16 - 30 November 2010

CORPORATE

BMW 7 series to have BMW Navigation Professional

ajaj Auto International Holdings BV Netherlands (BAIHBV), a wholly owned subsidiary of Bajaj Auto, purchased additional 244,600 shares in KTM Power Sports AG (KTMPS) recently, taking its stake in the Austrian motorcycle maker to 38.09 percent. A release from BAL stated that the fi rst of the jointly developed products – KTM Duke 125 is likely to be launched in the European markets in 2011. The KTM Duke was displayed at the recent INTERMOT Show at Cologne, Germany in October 2010 and will also be on display in the upcoming Milan show. The model is likely to be launched in India by around middle of next year.

MW India has launched BM W Nav igat ion Professional as standard feature in all BMW 7 Series models from November, 2010. The solution operates through an on-board iDrive control with integrated Global Positioning System (GPS) and has a 10.2inch high-resolution display, instrument cluster and rear-seat navigation control. The solution will help the driver in reaching the desired destination, which can be fed in the BMW Navigation Professional using the iDrive or voice control, available as an option. The location of the vehicle can also be established with the help of GPS. Currently, the BMW Navigation

Professional is being introduced in the flagship model the BMW 7 Series and subsequently will be offered in other BMW models. CE Info Systems, a leading provider of digital map data and consumer navigation services that provides GPS based enterprise solutions under the brand MapmyIndia.Map, is assisting BMW in incorporating the same.

Customer Comfort ‘BMW was the fi rst manufacturer in Europe to launch an integrated navigation system for a series vehicle in 1994 which formed one of the foundation stones for innovative systems to network vehicles with their

surrounding env ironment,’ said President, BMW India, Dr Andreas Schaaf. The standard features in BMW Navigation Professional include fi xed 10.2” display with 1280x480 pixel resolution, extended 9.2” info display in the instrument cluster, harddisc supported system including 12 GB memory, BMW radio professional, anti-dazzle monitor with split-screen function, GPS assisted orientation and destination mapping options.

Indian Operations BMW India is a wholly owned subsidiary of the BMW Group. BMW Group is planning to invest `180 crore in India by the end of 2012. BMW activities in India include assembling facility in Chennai which assembles the BMW 3 Series and BMW 5 Series sedans in petrol and diesel variants. The BMW’s Chennai facility has the capacity to manufacture 5,400 units per annum on a single shift basis. By end of 2010, the Chennai facility will also start producing the BMW X1.

Hyundai i20 to get GPSbased AVN system H

yundai Motors India announced that the Asta variant of the i20 would be equipped with GPS-based Audio Visual Navigation (AVN System). The high-tech system will come as an option with the petrol and diesel version of the Asta variant, starting at Rs 6.3 lakh. The AVN equipped Asta will have with 5-inch LCD display and a touch screen interface with satellite-based voice-guided navigation to enable one to easily chart travel routes within and across multiple cities. The announcement was made in the view of the i20 sales crossing the 2.5 lakh milestone in the domestic and overseas markets since its launch in December, 2008. The company has sold over 92,000 units in the domestic market and has exported around 168,000 units to around 80 countries. The system can aid the driver with information related to locations, route options, the nearest Hyundai touch points and numerous other points of interest like restaurants, hotels, hospitals and malls. The preloaded navigation software will

also help in guiding different users driving to the same destination through voice prompts in several languages including eight Indian regional languages. It doubles up with as a video player and can connect with USB-based MP3 player. ‘To add value and offer conven-

ience to our customers in India, we are introducing the high-tech Audio Visual Navigation System and there will be more features to come in coming months across variants,’ said Managing Director and Chief Executive Officer, Hyundai Motors India, Han Woo Park.

20 - 26 January 2011 Bangalore, India

15th Indian Metal-Cutting Machine Tool Exhibition With International Participation

at s u Visit 2011 X E T M I

Auto Monitor

AUTONOMICS

16 - 30 November 2010

Third party logistics: A strong case for revenues to treble by FY15 Exhibit 2: Facilitators for growth of 3PL in India

Hetal Gandhi Team Leader, CRISIL Research Pallavi Joshi Analyst, CRISIL Research

CRISIL Research expects revenues of third party logistics (3PL) services in India to grow at a compounded annual rate of 27 percent to `190-195 billion over FY10 to FY15. The key drivers that will strengthen the case for 3PL adoption include – the potential for the corporate sector to improve the efficiency of their increasingly complex supply chain, the Government’s thrust on developing logistics infrastructure, and a favourable regulatory environment. CRISIL Research’s study of 3PL potential in eight non-bulk industries concludes that the potential for 3PL adoption is the highest in organised retail and consumer durables.

3PL revenues to treble by FY15 A third party logistics (3PL) provider is a fi rm that provides single-point logistics services to client companies for any or all their supply chain management functions such as sourcing, warehousing and transportation. CRISIL Research

Source: CRISIL Research estimates revenues of the 3PL industry in India to more than treble from `57-60 billion in FY10 to `190-195 billion by FY15. This will lead to the share of 3PL services in the overall logistics services market to rise from 1.5-2 percent to 3.5-4 percent over the five-year period (Ref: Exhibit 1). Apart from a likely strong macroeconomic growth, the key drivers of growth for the 3PL industry will include the potential for the corporate sector to improve their supply chain efficiency and reduce costs of warehousing and transportation; the Government’s thrust on developing logistics infrastructure, and a favourable regulatory environment (Ref: Exhibit 2).

Strong macroeconomic growth Despite India’s healthy macroeconomic growth over the past fi ve years, the corporate sector has slowly adopted 3PL services, mainly due to their

Exhibit 1: 3PL market size

E: Estimated; P: Projected

Source: CRISIL Research

Third Party Logistics (3PL) What is a 3PL player? CRISIL Research defi nes a 3PL company as a logistics player, who can provide multimodal transport (including rail and road transport services) and infrastructure services. A logistics player, which handles a company’s transportation and warehousing requirements and offers value-added services such as repackaging and reverse logistics can be termed a 3PL service provider.

CRISIL Research’s study of third party logistics (3PL) potential in eight non-bulk industries concludes that the potential for 3PL adoption is the highest in organised retail and consumer durables

relatively smaller scale of operations and less complex supply-chain needs as compared to their counterparts in developed countries. Underdeveloped infrastructure and an absence of large organised players in the 3PL industry are the other important factors. With India’s GDP expected to grow by 8-8.5 percent over FY10 to FY15, driven by a strong growth in industry and services, consumption and manufacturing growth are poised to accelerate. This will result in increased movement of goods in the country, which would, in turn, expand the corporate sectors’ scale of operations and make their supply chain more complex. Growth opportunities for the logistics industry will hence increase, enhancing the prospects of the 3PL industry in India.

ation, a company itself manages its entire supply chain operations – procuring goods, warehousing, transporting and distributing – leading to inefficiencies in these operations. In the 3PL service model, a specialised third party logistics player acts as an interface between a client company and its vendors, and manages the supply chain operations. Given its advantage of scale, the 3PL model enables client companies to reduce logistics costs. Usage of 3PL services in a pharmaceutical company, for instance, typically lead to savings of 12-14 percent in total logistics costs.

Potential for improving supply chain efficiency

Favourable regulatory environment

The efficiency of logistics operations in India lags behind that in developed nations, translating into higher expenditure on logistics. CRISIL Research estimates the total logistics spend in India at 10.7 percent of GDP, significantly higher than the logistics spend of 5-7 percent of GDP across developed nations. India’s greater logistics spend is largely due to inefficient logistics operations, multiple tax structures, inadequate logistics infrastructure, and the unorganised nature of the transport industry. An increasing number of players in the corporate sector in India, like their counterparts in the developed countries, are exploring outsourcing options for managing their logistics, to cope better with demand volatility, control costs and focus on their core competencies. According to a study, about 400 of the Fortune 500 companies outsource at least one logistics function such as transportation or warehousing to 3PL service providers. This indicates the potential in India for outsourcing logistics, which would boost growth for 3PL.

Under the existing tax regime, companies have to maintain a distribution centre or warehouse in every State to save on CST (central sales tax) during stock transfers. This leads to the establishment of smaller warehouses with inadequate or outdated technology and equipments, thereby increasing the companies’ material handling costs and IT overheads. With the Indian Government phasing out CST and proposing to introduce GST (goods and service tax) by FY13, we expect companies to consolidate their warehousing facilities. The emergence of large warehouses will make the deployment of modern material handling and packaging equipment economically feasible. This will encourage companies to adopt 3PL services.

Potential for cost reduction

Development of logistics infrastructure The Indian Government’s initiatives to develop logistics parks and free trade warehousing zones (FTWZ) are leading to the emergence of large logistics infrastructure hubs. These hubs have modern handling, warehousing and packaging equipment, and are well-connected to

In a conventional logistics oper-

Exhibit 3: Sector-wise 3PL potential

Function of 3PL players 3PL players manage the overall logistics operations, spanning inventory management, supply-chain optimisation and value-added services such as managing vendors and distributors. By outsourcing logistics, the companies can not only concentrate on their core business operations but also achieve cost-efficiency and improved delivery.

Current state of the 3PL industry 3PL, initially a transaction-based service, has gradually evolved into a more strategic function that is integral to a company’s operations. In India, global logistics players pioneered the concept, providing 3PL services to Indian subsidiaries of multinationals. Encouraged by the visible benefits of 3PL services, Indian companies also began outsourcing their logistics operations to dedicated 3PL players, prompting domestic logistics players to offer 3PL services. Although 3PL services in India remain confi ned to the more basic transportation and warehouse management, players are expected to include value-added services such as repackaging and reverse logistics. Large corporate companies and multinationals are the major users of 3PL services in India since migrating to 3PL entails additional investment on IT integration across facilities, vendors and service providers. With an increasing number of companies exploring the concept to enhance the efficiency of logistics, 3PL adoption is likely to gain momentum.

Note: The size of the bubble represents the market size of the sector Source: CRISIL Research

Contd. on P44

~ ~ 2010 1 -Advertorial 15 September

GLOBAL WATCH

Auto Monitor

A leader in high-performance synthetic rubber

ubber has become an indispensable part of the modern world. Whenever machines and engines use ball bearings, forces are transmitted and liquids are transferred, rotating shafts and containers must be sealed, and wheels have to be clad with tyres, synthetic rubber is the answer to all such applications. Notably, the tyre industry is by far the biggest consumer of this raw material, accounting for about 80 percent of the world’s rubber production. From bicycles to the space shuttle, there is hardly a vehicle today that could function without rubber. New tyres and rubber variants are being

specifically designed for all types of locomotives and road surfaces. However, today’s high-performance rubber products (elastomers) have little in common with the materials obtained from natural rubber. Today’s technology and the requirements it imposes on rubber have been revolutionized since the early days when the first coats, boots, inkpots and even combs were manufactured from natural rubber. Higher temperatures on application, faster machines and more stringent standards of energy efficiency and cost-effectiveness are compelling engineers to opt increasingly for special grades of rubber. That is why research and

innovation never stops at LANXESS, the company which has more than 100 years of heritage in synthetic rubber innovations. In 1909, the chemist Fritz Hofmann succeeded in producing the elastic substance methyl-isoprene, thus paving the way for the development of synthetic rubber. Hofmann conducted his research at the laboratories of “Elberfelder Farbenfabriken vorm. Friedr. Bayer & Co.” – a company whose tradition is carried on till today by the specialty chemicals group LANXESS. Hoffman invented methyl rubber and was awarded the patent for world’s first synthetic rubber on September 12, 1909. Continental, a leading tyre company even back then, started to produce the first car tyres from this new material as early as 1910. Today, LANXESS continues to manufacture high-quality, premium synthetic rubber, driven by innovation. Its high-tech manufacturing facilities worldwide produce more than 100 different grades, which is why LANXESS is considered by many experts to be the synthetic rubber manufacturer with the most diverse product range in the world. Its product portfolio includes butyl rubber, performance butadiene rubber, technical rubber products and rubber chemicals. Synthetic rubber is employed today as the basis for a wide range of high-performance rubber products, and it will continue to be instrumental in unlocking the potential of new opportunities and applications in the future. LANXESS has created the Rubber Day events to bring together experts from the tyre and non-tyre industries, academicians, government officials, analysts, industry associations and members of the media. Following the highly successful 100 years Rubber Colloquium in Germany in September 2009, LANXESS has so far organized two Rubber Days in China and Brazil this year. The next venue is India. The LANXESS Rubber Day is aimed at fostering discussions on both commercial and environmental topics related to the manufacturing and consumption of high-tech synthetic rubber. While this product is an indispensable part of a modern, urbanized and industrialized society, LANXESS understands that collaborative efforts are necessary to sustain future developments. An important subject of discussion at the India Rubber Day will be the role of synthetic rubber in tyres for improving road safety in India. For more information about the Rubber Day, please visit http://rubber.lanxess.com/ en/rubber-day-new-delhi-india/

Auto Monitor

16 - 30 November 2010

INTERVIEW

Bosch India commits `1,500 crore investment in automotive sector India’s largest auto component manufacturer, Bosch, has aggressive expansion plans both in the automotive and nonautomotive space. Auto Monitor caught up with Managing Director, Bosch India, VK Viswanathan on the company’s investment, new business and expansion plans. Excerpts: Swati Khandelwal Jain How is Bosch reacting to the OEMs’ grouse that the shortage of components is leading to production loss? We have been facing this shortage problem for over a year now. After the slowdown hit us last year, we suddenly saw an upsurge starting the third quarter of 2009, which was not only sudden, but a very sharp one. That is why many of the small manufactures had capacity in a very short time, while big manufacturers could quickly respond to the sudden change. It takes a while for us to increase capacity and supply, because we depend on other suppliers as well. In the last six months, we have seen demand fulfi l and have seen consistently significant increase in sales of vehicles passenger cars and tractors. So was there a shortage for any particular components? The entire industry faced supply shortage of castings – both aluminium castings and gray iron castings. In addition, there was shortage of some other metals. What is the level of investment you have made in India

the country has called for lot of investments. We are also looking at innovation of using existing technologies. We are expanding our manufacturing capacity in Jaipur and looking at expanding our operations in Nasik, which manufactures conventional and common injectors. We are working on a couple of new projects. We were the fi rst to introduce locally manufactured common rail systems and antilock breaking systems in India, and are now working on innova-

and how much more will come in over the next couple of years? In total, we have six companies in India and all of them put together give us a large controlling factor in the Indian automotive industry. Over the last 15-20 years, we have investIt takes a while for us to ed a historical `3,000 increase capacity and supply, crore. We have a very because we depend on other ambitious investment plan for the future as suppliers as well. The sudden well, which involves upsurge in demand took investment of anothus by surprise er `3,000 crore. Of this, Bosch alone will invest `1,500 crore in the automotive side. There are tion-led products for our current planned investments in hydrausystem of fuel injections to meet lics and a packaging company. We the latest emission standards. will also make significant expansion in our software company. Give us an update on your multi brand car service outlets? How are you planning to grow it How many people have further? you added in the last two to Bosch Car Service (BCS) is a three years? unique concept. Having introWe have added close to 2,000 duced this business three to four people over last 18 months or so. years ago, we have got close to 400 outlets across the country. What are our immediate In the last 12 months, BCS has expansion plans? Do you have grown 25 percent. any new projects lined up? The migration to Bharat Stage IV from Bharat Stage III in 13 citWhat are your growth ies, and to Bharat Stage III from plans in the non-automotive Bharat Stage II in the rest of segment?

VK Viswanathan, Managing Director, Bosch India

In the non-automotive segment, the key priority is on the drives and control business, where we make hydraulic and pneumatic components. This business would attract a high level of investment in the next two to three years. We will be setting up a manufacturing plant near Ahmedabad in Gujarat, where we will be investing more than `200 crore. Secondly, we will also be investing close to `50 crore on other plant and machinery for setting up our own units on pack-

aging and confectionary, food and pharmaceutical packaging. That will see an investment of `25 lakh in the next two years. We will also be investing in expansion of our local manufacturing power tools business. These are the three businesses that would be our large focus areas over the next two to three years. We will also be expanding our development centres. Currently, we have space for 1,500 engineers and we will expand it to 2,500 over the next two years.

Auto Monitor

16 - 30 November 2010

CORPORATE

Emitec India to grow presence in CV segment, reach newer markets Our Bureau Mumbai

mitec India is looking to serve Indian customers in two-wheeler segment with latest technology in material and system integration. It is also looking forward to serve the commercial vehicle segment with Emitec’s German parent – Emitec Gesellschaft für Emissionstechnologie GmbH – acquiring Grundfos NoNOx of Denmark, a leading equipment supplier for Selective Catalytic Reduction (SCR), in September this year. Emitec Gesellschaft für Emissionstechnologie GmbH is a joint venture between

to serve demand from China as well as the ASEAN region, including Thailand and Vietnam. ‘We are gearing up to serve markets in the ASEAN region as two-wheeler emission norms are getting tighter in these countries, especially in Thailand and Vietnam. We would be servicing the entire Asian demand for twoWe are gearing up to serve wheeler emission control technologies markets in the ASEAN region from our Pune facilas two-wheeler emission ity,’ said Managing norms are getting tighter in Di rector, Em itec India, Chris Dias. these countries, especially in He said that Emitec Thailand and Vietnam India, with favourable cost structures and process control, would be servicing demand for two-wheeler catalytic converters from the Pune facility and further expansion can be envisaged in case of additional demand.

Continental and GKN Driveline. In India, Emitec is on schedule to double its two-wheeler catalytic converters and other emission products to around 16 million units per annum by end of next year. This will allow the Indian arm of the German emission control technologies major

Chris Dias, Managing Director, Emitec India

Growing Market For SCR Selective Catalytic Reduction (SCR) is a procedure for reducing the proportion of nitrogen oxides in exhaust gas to comply with legislation, while developing engines. Metering systems are the central component of this exhaust gas after-treatment technology and a crucial new technology for realising further reductions in consumption. The acquisition of Grundfos NoNOx by Emitec is likely to complement the after-treatment components available at Emitec and underline the company’s leading position in emission control technologies globally, according to a company release. The market in SCR systems is growing and will see demand for more than two million systems in the commercial vehicles sector in 2015. The Grundfos NoNOx takeover, meanwhile, will see Emitec acquire the subsidiary Grundfos NoNOx – with its development facilities in Denmark and its development and production facilities in France – from global operator Grundfos, the Danish manufacturer of industrial pumps. The company employs around 80 people. Grundfos NoNOx is one of the three major developers and producers of metering systems for SCR exhaust gas after-treatment systems. Emitec is a leading supplier of metallic catalyst supports and particulate soot fi lters for exhaust gas after-treatment systems. Meta llic support high-performance catalytic converters have low pressure loss and allow full engine power combined with minimal consumption. Flexible designs and structures ensure maximum effectiveness in a small fitting space, courtesy accurately coordinated turbulence. The SCR catalytic converter can therefore be fitted close to the engine to great beneficial effect. Emitec is a global operator employing around 800 people. In 2010, the company is likely to reach sales worth €140 million. Emitec develops and produces top-quality metallic-support high performance catalytic converters and particle fi lters, making it a global market leader.

Auto Monitor

16 - 30 November 2010

TWO-WHEELER SPECIAL

Scooter sales lead two-wheeler recovery this ﬁscal Domestic Scooter Sales - H1FY10 vs H1FY11 OEMs

Apr-09

BAL

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Total

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Total

YOY Change

519

492

526

516

454

402

2,909

-99.07%

HHML

15,225

14,725

16,045

17,714

18,511

17,299

99,519

23,682

23,738

24,613

24,776

26,588

26,468

149,865

50.59%

HMSI

53,779

60,128

58,100

66,069

58,255

52,552

348,883

71,477

76,980

78,561

75,180

74,405

64,191

440,794

26.34%

MTW

1,609

2,193

2,333

2,808

4,005

3,006

15,954

9,009

8,046

10,017

12,033

15,165

16,569

70,839

344.02%

SMIL

8,192

8,949

9,390

9,826

9,793

10,217

56,367

18,893

18,178

14,907

16,753

15,153

17,862

101,746

80.51%

TVS

17,805

21,804

25,586

26,326

27,676

29,468

148,665

25,159

30,567

36,469

38,453

39,171

41,404

211,223

42.08%

Total

97,129

108,291

111,980

123,259

118,694

112,944

672,297

148,247

157,509

164,567

167,195

170,482

166,494

974,494

44.95%

Jul-10

Aug-10

Sep-10

Total

YOY Change

Scooter Exports - H1FY10 vs H1FY11 OEMs

Apr-09

BAL

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Total

Apr-10

May-10

Jun-10

156

260

624

-100.00%

HHML

392

336

448

280

636

2,372

1,568

1,008

1,064

1,288

1,120

1,232

7,280

206.91%

HMSI

508

348

972

1,049

798

843

4,518

1,210

715

1,141

1,500

1,398

743

6,707

48.45%

MTW

166

182

682

118

160

132

180

176

854

25.22%

SMIL

119.51%

TVS

987

655

319

1,256

874

980

5,071

1,701

1,317

273

1,904

1,742

1,682

8,619

69.97%

Total

2,053

1,584

1,829

2,725

2,196

2,921

13,308

4,597

3,244

2,610

4,825

4,440

3,834

23,550

76.96%

Our Bureau Mumbai

wo-wheeler segment sustained its double digit growth in the month of October and continued the trend of growth in positive territory since the beginning of the year. Scooters sales have outpaced the overall two-wheeler volume growth this fiscal. Overall cumulative twowheeler sales from for the current fi scal (April-October) stood at 6,754,133 units as compared to 5,220,399 units in the corresponding period last fiscal growing by around 29 percent, according to the data available from the

Society of Indian Automobile Manufacturers (SIAM). Cumulative domestic scooter sales have increased to 974,494 units this fi scal compared to 672,297 units in the corresponding period last fiscal growing by around 44.95 percent. Honda Motorcycles & Scooters, the market leader in scooters, sold 440,794 units upto September this fiscal a growth of 26.38 percent compared to 348,883 units in the corresponding period last fiscal. HMSI sold 64,191 units in the month of September compared to 52,552 units in the same month last fiscal. Mahindra Two W heelers notched up highest growth rate

H1FY10

H1FY11

Change

Production

681,493

999,770

46.70%

Domestic

672,297

974,494

44.95%

13,308

23,550

76.96%

1,367,098

1,997,814

46.14%

Exports Total

in the scooters sales to touch 70,839 units, a growth of 344.02 percent. Mahindra Two Wheelers sales for the month of September stood at 16,569 units, a growth of 451.2 percent over the same month in the previous fiscal. TVS notched up highest scooters exports this fi scal with cumulative exports touching 8,619 units, a growth of 69.97 percent. The overall cumulative exports of scooters touched 23,550 units this fi scal as compared to 13,308 units in the corresponding period last fi scal, a growth of 76.96 percent. Hero Honda sold 149,865 units in the cumulative sales this fiscal compared to 99,519 units in the corresponding period last fiscal. Hero Honda sold 26,468 units in the month of September as compared to 17,299 units in the same month last fiscal. TVS Motors grew by around 42 percent in September this fiscal with domestic sales touching 41,404 units as compared to

29,468 units in the same month in previous fiscal. Cumulative sales of TVS Motors touched 211,223 units this fi scal as compared to 148,665 units in the corresponding period last fiscal. The cumulative growth this fi scal was lead by scooters segment at 52.11 percent followed by motorcycles and mopeds at 25.6 and 25 percent respectively. Mahindra Two Wheelers, the newest entrant in the two-wheeler segment, has been making the largest gain in volumes in the recent months in the two-wheeler segment albeit from a low base. ‘Though the market is robust for most of the vehicle categories, including two wheelers, the growth is hampered by capacity constraints at the supplier level. The situation should balance out in the coming months,’ said President, Automotive and Farm Equipment Sector, Mahindra & Mahindra, Dr Pawan Goenka. Cumulative t wo-wheeler

exports grew by around 48 percent to touch 917,900 units this fi scal as compared to 616,513 units in the corresponding period in the previous fi scal. Scooters/ scooterettee exports grew by around 52 percent to 26,987 units in April-October period followed by around 48 percent growth in the motorcycle exports and 84 percent growth in moped exports this fiscal. Domestic motorcycle sales touched 5,190,740 units upto October this fi scal as compared to 4,132,838 units notched in the corresponding period in the previous fiscal. The growth in volumes is reflected in the fi rst and second quarter results of two wheeler manufacturer including Bajaj Auto, Hero Honda and TVS Motors. Hero Honda’s net sales for the second quarter stood at `4551.95 crore as compared to `4059.44 crore in September last year. Net profit in the corresponding quarter this fi scal stood at `505.6 crore (`597.14 crore). The company’s sales for the fi rst quarter ended June this fi scal stood at `4296.61 crore as compared to `3822.44 crore in the corresponding period last fiscal. Net sales of Bajaj Auto stood at `4341.82 crore in the second quarter this fiscal as compared to `2887.51 crore in the corresponding period last fi scal. Bajaj Auto also improved its net profit in the second quarter to `682 crore as compared to `402.83 crore in the corresponding period last fi scal. For the fi rst quarter ended June, the company grew its net sales to `3890 crore as compared to `2338.47 crore in the corresponding quarter last fi scal. The net profit in the fi rst quarter grew to touch `590.15 crore as compared to `293.49 crore in the corresponding quarter last fi scal. Suppliers to the two wheeler segment are pinning hope on continued growth in sales in domestic and export market and are in the process of expanding capacity to cater to the increasing demand.

16 - 30 November 2010

TWO-WHEELER SPECIAL

Auto Monitor

BSA Motors reworking service, technology strategy for e-scooters Shobha Mathur Chennai

SA Motors, the twowheeler division of Tube Investments of India, is undertaking a host of initiatives in an effort to improve and upgrade its existing product portfolio. Towards this, the company is streamlining its cost, quality and performance besides enhancing the service experience for the end-user. Tube Investments of India is the flagship company of the Chennaibased Murugappa Group. With an eye on improving the vehicle’s efficiency, the company is primarily focusing on technology development of motors and controllers for its range of electric scooters. The e-scooter BSA Motors had launched earlier this year has drawn flak for its slow speed and efficiency, when pitted against its fuel-operated counterpart. ‘We have undertaken a lot of investments in electronics for modifying charging systems, building a microprocessor-based charger and battery management electronics capability for our vehicles. These electronics are normally present in four-wheelers. We have also introduced digital speedometers on our e-scooters,’ Vice President, KB Srinivasan told Auto Monitor. The BSA Edge, for instance, has not fared too well in the market. The vehicle carries a high price tag of around `45,000 (onroad) due to an expensive motor solution imported from Korea, as well as an imported battery. The

battery has now been replaced with a local battery – supplied by Exide – but volumes of the scooter are yet to take off. The company is now working on battery development in collaboration with a Canadian firm, wherein the foreign partner would develop the battery design and technology in Canada and BSA Motors would get it manufactured in India through a supplier, by Q1FY12. The Canadian player is involved in the manufacture of advanced lead acid battery technology, design and materials. These harness a lower quantity of the lead material, enabling the lead acid battery to become about 35 percent lighter in weight without compromising on energy levels and capacity, using the same material. Prototypes of the battery are ready and are currently being tested at the BSA laboratory in Chennai. The motor and controller meanwhile, is past the production trial stage in Korea. Manufacturing is expected to be outsourced to a local supplier in Q1FY12, when mass production of the product starts. Explaining the premise on which the battery management systems operate, Srinivasan said that the system harnessed a 48 volt system with four lead acid batteries stringed together in a series. ‘We have electronics equipped on the charger as well as on the vehicle. These monitor the charge level of each battery separately and helps increase the life of the battery significantly,’ he explained, leading to less warranty complaints. Life of the battery is also prolonged by about

KB Srinivasan, Vice President, BSA Motors

30 percent, from about 14 months to 20 months. BSA Motors was earlier importing motors and controllers from China and Taiwan and would now go to market with its new portfolio of motors and controllers in the fi rst quarter of FY12. ‘We are sourcing motor design from a Korean company that is a specialist in motors along with American technology in electronics, through a technology support agreement,’ he said.

Staging A Comeback The company began sourcing batteries from Exide starting April 2010, while earlier they were imported from Taiwan. ‘Exide has a superior lead acid battery manufacturing technology,’ admitted Srinivasan, ‘compared to the imported ones.’ Moreover, the Exide batteries possess a better range and generate a higher

mileage ranging between 10 and 15 percent. According to BSA officials, the efforts at improving the reliability and performance of the company’s e-scooters should have been undertaken before hitting the market but at that time the company was expecting the imported Chinese and Taiwanese technology to perform well and become an instant hit in India, but admittedly, that did not happen. Now, BSA Motors is trying to stage a comeback into the market pepped-up with renewed investments in technology and products. The focus though would continue to remain on increasing its presence in its existing markets of Delhi, Tamil Nadu, Gujarat, Andhra Pradesh and Kerala before it plans further inroads in the country. Incidentally, many small players in the country who were earlier

importing Chinese products and marketing them in the local market without any service support have fallen by the wayside, sources in the industry said. Even two-wheeler major, TVS Motor, who had entered the market in 2008, had to beat a hasty retreat after selling about 12,000 units of e-scooters during one year. ‘Products that did not possess quality, reliability and a good service facility had to exit the market and the same principle applies uniformly to both big and small players. This is a completely new category requiring adequate research and development, a good service support system to ensure stability and reliability of the product and that did not happen with many of the players who were ousted out,’ Srinivasan elaborated.

Shrinking Market Faced with a shrinking market, even the existing large players are believed to be struggling with volumes. For example, the market that was around 120,000 units per annum a couple of years ago has now shrunk to around 55,000 units per annum with the exit of many small players and in the absence of significant regulatory support. There has been a significant drop in the number of players in the electric two-wheeler market in the last couple of years – estimated to have dipped from 70 to 10 at present – with BSA Motors, Hero Electric, YO Bykes, Ultra Motors, Avon Cycles and Ampere Vehicles as some of the key players.

Contd. on P44

Auto Monitor

TWO-WHEELER SPECIAL

16 - 30 November 2010

BMW Motorrad announces India foray, sales to begin by December this year Our Bureau New Delhi

he motorcycle business unit of the German giant, BMW – BMW Motorrad – has announced its entry into the Indian market. The company will introduce its premium range of motorcycles in the Indian market by December this year, likely to be priced from `18 lakh onwards. The motorcycles will be produced at the BMW Motorrad plant in Berlin, Germany and supplied to India as CBU (completely built up) units. BMW Motorrad produces all its motor-

BMW R 1200 GS

BMW S 1000 RR

cycles at its plant in Berlin, but some engines are manufactured in Austria, China, and Taiwan as well. The company would start its sales activities on t he India n motorcycle market with two official importers – Deutsche Motoren in Delhi and Navnit Motors in Mumbai and Bangalore. Deutsche Motoren and Navnit Motors are existing BMW dealerships selling the entire range of products available in India. It may be noted that the market for big bikes in India has been steadily growing in numbers, with several new entrants launching products over the last couple of years. Harley-Davidson, the iconic American bike maker has, in fact, announced plans to set up an assembly plant in Haryana, while Japanese majors including Honda, Suzuki and Yamaha and Italian Ducati have brought in their high-end motorcycles through the CBU route. In a statement issued by the company, General Director, BMW Motorrad, Hendrik von Kuenheim said the BMW Group has already established itself very successfully in India with a local BMW automobile production and a sales network for BMW Group automobiles. ‘Now the market for premium motorcycles is beginning to develop, too. The sales activities now commencing with our two experienced BMW Group partners are of long-term significance to BMW Motorrad. We are confident our motorcycles will swiftly become established in timely preparation for the growing market,’ he said.

Product Plans Initially, BMW Motorrad will offer the current models of the R and K series as well as the superbike S 1000 RR. The S 1000 RR, BMWs fi rst superbike, became the most admired sports bike of its class in the motorcycle season 2010, said the company statement. The statement also said that motorcycles of the R series, such as the legendary enduro bike BMW R 1200 GS, ‘enthuse customers with their unique and distinctive boxer engine in particular’. In all, BMW Motorrad motorcycles are categorised into product families, including the F series that features paralleltwin engines of 798 cc capacity; G series with single-cylinder engines of 449-652 cc capacity; R series with twin-cylinder boxer engines of 1,170 cc capacity; K series that features four-cylinder engines of 1,157-1,649 cc capacity and a six-cylinder 1,649 cc that will enter production in 2011. The S1000RR sport bike with transverse-mounted, 999 cc, inline-four engine completes the company’s current line up of motorcycles.

16 - 30 November 2010

TWO-WHEELER SPECIAL

Auto Monitor

‘Accessibility most important driver in making India investment’ Almost coinciding with American President, Barack Obama’s visit to India, iconic motorcycle maker, Harley-Davidson announced CKD assembly operations in India in a facility it plans to build in Haryana. The company expects the complete knock-down assembly facility to be operational in the first half of 2011. Auto Monitor spoke to Managing Director, HarleyDavidson India, Anoop Prakash for a first hand opinion on the company’s objective and plans. Excerpts: Deepangshu Dev Sarmah How significant is this decision to set up an assembly plant in India? It’s a huge step for us as India is a rising market. And this will help us establish our way to the rising market. We started-off in India with a subsidiary from day one. We are bullish about our opportunities here in India. What gives you such confidence about the market? What prompted you to set up an assembly plant here? I think we have a responsibility towards our riders. We see the leisure-riding segment starting up in India. We believe we are creating that segment and establishing the leisure-riding segment in this market. It’s an early time in that market segment and as market leaders, we want to take on that responsibility of being the market maker. It is also motivational to make our products accessible. I think accessibility is the key driver in making this investment. We have more f lexibility from our end in terms of production and pricing – they are all well defi ned. What makes us feel bullish is the growth story in India that has come down to be incredible. I had a brilliant chance in Mumbai recently to be part of Deputy Chairperson, Planning Commission, Montek Singh Ahluwalia’s presentation regarding India, its GDP growth, and other growth indicators. The growth strategy seems executable, and we feel strong about the growth indicators. But the numbers still continue to be small. Does that justify your investment in India? I think we should turn back to our history book and see the response that everyone had to the premier car segment in India. I don’t think anyone will now go back to the bullish growth in the market segment, how they created the initial demand trajectory and double digit growth in that segment and say that they hurried in. I think that is story that we are trying for. Could you give us an idea about the size of the plant, estimated investment and what is the number of products you are looking at assembling in India? Our plant is going to be of a size in order to maintain flexibility in production. It’s about 70,000 sq ft. I can’t tell you the exact investment but I can tell you that tens of billions of dollars are going into the project that will be continuous operations of our subsidiary. It’s a significant investment from all perspective in the Harley context. And when it comes to units, I think that is going to be based on demands. Right now we are at a

very early stage; we are just starting off and it will be difficult to project what the trajectory would be. But we expect it to be much like we have seen in the premier car segment. Assembling products locally would also bring down the excise

duties in play. What is the change in price that you foresee? We are expecting to offer some exciting prices and beautiful models when we begin. Right now we are focusing on the investment not only in the plant but also the recruitment that we do, conversion cost and the investments we want to make in the ongoing business for the future. We are waiting for January next year; that is when we will announce the prices and products. Is there some possibility of part sourcing at a later stage? Our sourcing occurs centrally in our headquarters at Milwaukee. We do have sourcing professionals in the world, and

there could be opportunities here in India. I think we should always look out for suppliers and those who support our world-class quality standards. I certainly don’t see any reason why we wouldn’t see more and more interest from suppliers globally. As of date is there any sourcing happening from India? I know there are at least two sources supplying from India and there might be more.

Contd. on P27

Anoop Prakash, MD, Harley-Davidson India

16 - 30 November 2010

‘Accessibility most important driver ... Contd. from P26 Do you also see the Indian operations contributing in terms of research and development in the future? We are all ready. Although in our early stages in this market, we are integrated into our goal, product planning process, the organizational size – which is important in our current context – and growth strategy. There is a lot of input in regional planning and global planning for car developing. There has been a lot of interest in understanding the needs. Would you also consider exports from the Indian plant? If yes, what are the markets that you will cater to from India? As of now we will focus on our growth in India. Our international teams and our regional teams will cater to any export strategy. Everyone is very excited about

We have more flexibility from our end in terms of production and pricing – they are all well defined. What makes us feel bullish is the India growth story the establishment of this operation. This is the fi rst time we are going out of the United States. We are present in Brazil as well, but this is the fi rst assembly plant outside the United States. To begin with what are the products you would assemble in India or will you assemble all the products that you have in the market? We will start with a smaller subset in the beginning to ensure that we are able to manage in a timely manner and can ensure the right quality standards. We are taking inputs from our retail operations. We started setting up our dealerships only four months back. So there is lot to learn. What are your plans in terms of the distribution network? You are already present in five cities in India. We are there in four cities and are opening in Bangalore in November. We are expecting more dealerships in the next year and are in the process of exploring dealer partners in Ahmedabad, Kochi, Kolkata and Chennai. That would be our growth story for next year. Being part of a new segment, everyone will get an opportunity to optimise the growth and demand in the market. Would you like to comment on the numbers you would like to achieve in the next year in terms of sales? I won’t give you a number mainly because our focus is to grow in terms of accessibility, rather than specific targets. By offering choices to our customers, we have to ensure every single product reaches the market.

TWO-WHEELER SPECIAL

Auto Monitor

Royal Enﬁeld targets 6,000 units per month by 2011 Our Bureau Chennai

oyal Enfield is optimising existing capacity at its Thiruvottiyur plant in Chennai to reach an average of 6,000 motorcycles per month by 2011 or 72,000 motorcycles per annum. It has a current outflow of around 55,000 units per annum from the plant. The motorcycle maker from the Eicher Group had planned to set up a new assembly line by November this year at the existing plant. Queried on whether it had become operational, Head – Sales and Marketing, Shaji Koshy said the new assembly line is functioning and ‘our current production of Classics is on this assembly line. Our focus is on utilising every opportunity to meet market demand by rationalising our internal capabilities.

The new assembly line is just one step in this direction.’ The company was believed to be scouting for land near its existing Thiruvottiyur facility to tide over capacity constraints of its Classic 350 and 500 models, which were launched last year with a long waiting period of several months. The new plant is likely to attract an investment Shaji Koshy, Head – Sales and Marketing, Royal Enfield of around `250 crore plies and capacity constraints with an installed capacity of faced by suppliers of Royal 250,000 units to be achieved Enfield, he clarified that while by 2020. the capacity constraint did affect ‘We have faced a consistthe company temporarily, it was ent growth in demand for our working closely with its vendors product line-up and hence we for smooth ramp up of supplies are ramping up our production from their end. capacity to satisfy the market ‘Our bikes have a high degree demand,’ explained Koshy. of indigenous components,’ he In terms of component sup-

said but admitted that for very specific requirements like specialised electronic components like the Electronic Control Unit for fuel injection systems, Royal Enfield had procured them from international suppliers. T he c om p a n y ’s recently entered the California market in the US for exports. Koshy said exports and domestic business are expected to be factored into all future plans as well. Koshy was optimistic that the entry of iconic brands into the Indian motorcycling space like that of BMW Motorrad would provide a further fi llip to the riding culture in India, which was healthy for the overall industry that grew at about 25 percent this year.

Auto Monitor

TWO-WHEELER SPECIAL

16 - 30 November 2010

Hyosung looks for second innings in India with Garware Motors Our Bureau Mumbai

arware Motors has entered into a technical arrangement with Korea’s S&T Motors for the introduction of its Hyosung motorcycles in India. This will be the second innings for the Korean bike maker in India, after its initial entry through the erstwhile Kinetic Motors. Garware Motors recently introduced S&T Motors’ GT650R and ST7 racer and cruiser bikes respectively in India starting `6.5 lakh. Under the technical arrangement, Garware will import kits and assemble Hyosung bikes at its Wai facility. Garware Motors is a wholly

Shrikant Patankar, President, Garware Motors,

owned subsidiary of Garware Bestretch. Though the current plans are to import CKDs and assemble the bikes in India, Garware is evaluating possibilities for local manufacturing and even exports to neighbouring countries as volumes pick-up.

Hyosung ST7

Hyosung GT650R

Earlier, Hyosung motorcycles were assembled and marketed by the erstwhile Kinetic Motors (acquired and renamed Mahindra Two Wheelers) through a collaboration with the Korean company in the early 2000s. Two of the more well-known models

launched in India include the Aquila and Comet, both sporting a price tag of around `1.5 lakh at the time of their introduction. In its short stint as a motorcycle manufacturer, Kinetic launched four bikes in the market including the Boss and Velocity in the

India Inc. Spearheading Ecological Balance Participate in the Siemens Ecovatives Awards 2010 TM

115 cc segment, the GF 170 and GF Laser 170. Garware Bestretch (formerly known as Bestretch Elastomers International) is one of the leading manufacturers and exporters of latex (natural rubber) and latexfree (synthetic polyisoprene) and elastic rubber products. Garware Bestretch is a part of the multimillion-dollar RBG Group that has interests in synthetic ropes, twines, nets, rubber tapes, sheets, threads, medical tapes and infrastructure building. ‘The decision to enter highpowered 650 cc and 700 cc motorcycles was driven by intention to not enter the mass market motorcycle segment in India. Though our Korean partner has motorcycles in the 100-250 cc range, we are not equipped to deal in the mass market in terms of sales and service expectations,’ said President, Garware Motors, Shrikant Patankar. He said there is a large untapped market between 250 cc and 1,000 cc displacement capacity, which the company is hoping to address. Patankar added that the company is evaluating possibilities of introducing additional high-end models from S&T’s stable as well as local development of motorcycles for the Indian market over the next two to three years. The current priority is to establish a presence in the performance biking segment and explore the largely untapped segment in the two-wheeler market in India.

Distribution Network

In Association with

Process Advisors

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

Garware Motors is in the process of setting up a dealership and service network and would have ten dealers by the end of this year and is hoping to sell around 1,000 motorcycles in a years’ time. ‘Currently, a lot of sports bikes available in India are in one litre and above segment costing more than `10 lakh, which make them unaffordable for the emerging performance biking segment in the country,’ Patankar added. The high price tag and capacity not only make them impractical for Indian roads but also beyond the reach of significant section of buyers and hence provides an opportunity for Garware to penetrate this niche, he elaborated. Hyosung began producing Suzuki motorcycle designs under license for the South Korean market in Changwon, South Korea in 1979. In 1986, they established their own research and development centre in Hamamatsu, Japan, and the next year, they began mass production of their own designs. In June 2007, Hyosung Motors Division was acquired by S&T Group and the name changed to S&T Motors.

Auto Monitor

16 - 30 November 2010

CORPORATE

Continental Tech Centre to become... Contd. from P1 and was priced lower than €7,500. ‘In China alone, there are 90 OEMs and the affordable car segment in emerging markets is worth 16 million units,’ he said. ‘Affordable cars need our products at a cost that is 40 to 50 percent less expensive than in the developed markets. Most of the costs are driven by requirements, durability tests and environmental tests, so this requirement has to be analysed and applied to the local Indian market and then the cost will come down.’ Meanwhile, the three main elements of the affordable car platform underway at the Tech Center India are localisation processes to facilitate cost competitiveness, collation of the real requirements of the emerging markets that are varied from the

developed economies as well as an integration process. Localisation is aimed not just towards production, but adaptation of production to a localised R&D by Indian engineers well-versed with the local market. Most of the component parts would be purchased through the local supply chain for the products. At present, the Bommasandra plant sports about 70 percent localisation content and this is expected to rise to 85 percent by 2012 after the development work is completed at the Tech Center.

Integrating Processes ‘Integration signifies creating one Electronic Control Unit out of two ECU products to reduce cost in assembly and development and that is

Joachim Nell, Head of Technical Center India and Director Affordable Cars Strategy, Continental

what we are driving at in the Tech Center. In each of the three divisions – chassis & safety, powertrain and interiors – we have set up product development for a new system for affordable cars at both the Tech Center and at the Bommasandra plant,’ Nell said. The Tech Center initiates development work before approaching a customer based on the demand for products. After market analysis, the system is designed and followed by design verification and in-house tests before showcasing it to the customer. ‘For instance, there is demand for diesel systems in India and not so in China, so we would design a new system at a low cost, apply

it to the Indian market and then start development work on it,’ he explained. Talking about the affordable car market, Nell said that it was one part of the mega trend in the automotive sector and big growth was expected in the emerging markets in this segment going forward, particularly in China and India. Hence, t he need for Continental to take advantage of its positioning in the developed markets to adapt its technologies for fulfi lling the emerging market needs. ‘We have to improve our cost situation and our product portfolio to be successful here and India leads in low costs for all products,’ he added. That was a prime reason for choosing India for the Tech Center.

Engineering Services As part of Continental’s offshoring services, the Technical Center India also provides engineering services to its headquarters in Germany and its locations in Asia. It has been working in partnership with Siemens Information Systems, KPIT Cummins Infosystems and Wipro since 2006 for developing and supporting multiple automotive engineering projects for its global customers at Continental. Some of its activities include development and testing of engine management systems to reduce fuel consumption and emissions of engines, development of digital tachographs and telematics systems to optimise fleets of commercial vehicles and public transport systems, testing of energy management software for electric and hybrid electric vehicles, software development and verification for electronic brake systems and testing and enhancement of body controllers with integrated tyre pressure monitoring systems, among others. But since the establishment of the captive development centre in 2009, work on systems and basic development work has started that defi nes new system platforms – for example – the Antilock Braking System (ABS) that can be developed for any OEM in the world. At present, Tech Center India employs about 600 engineers and has a target growth of 20 percent YoY. It is believed to be the biggest engineering hub in Asia for the company and the third largest after the ones at Germany and Romania. The Center is today housed on around 2,600 sq metres rented space that was expanded in two phases and houses two electronics laboratories. The phase III extension in early 2011 would ramp up the manpower strength by another 100, predominantly of engineers and testing personnel, and create an additional 150 work stations for them. Another 1,600 sq metres space would be added that would house two other laboratories – one mechanical and another electronics, a dyno testing facility for testing complete systems, moving parts, design verification tests and would be developed along with partners. `150 crore is expected to be invested in the Center with funding from the parent company.

Auto Monitor

16 - 30 November 2010

CORPORATE

Autoplas 2010 Amara Raja plans capacity expansion on growing demand P Our Bureau Chennai

mara Raja Batteries (ARBL) is planning to double its capacity to cater to surge in demand from automotive sector. The company reported a growth of over 30 percent as against the expected 12 to 15 percent. ‘Due to the unexpected growth of the automobile industry there is a lot of pressure on the suppliers in order to meet the demands of the customers. We have been scrambling to meet the demands. There has been almost double the projected growth and we are trying to meet the customer demand through some manner or the other,’ said Managing Director, ARBL, Jayadev Galla.

The company manufactures batteries under the brand name Amaron and has a plant located in KaraKambadi near Tirupati, plans to double its capacity in two-wheeler as well as four-wheeler segment. ‘In the two-wheeler segment we introduced a totally sealed battery last year and have received a huge response from the customers. We are planning to double the capacity of twowheeler batteries.’

Electric Vehicles On Electric Vehicles (EVs) Galla said that pure electric technology is yet to be in a commercialised state, but the kind of developments that are taking place in China and India and

other places it is hard to predict where the break throughs are going to come from, is it going to be the US, Europe, Japan or India or China or Brazil. ‘We are continuously launching products of different sizes but we are not looking forward to any new technology partner’ said Gala ruling out the possibility of introducing new technology or JV in the near future. He also ruled out the possibility of a JV or collaboration since it is already working with Johnson Controls. The company is a supplier to almost every major auto manufacturer including General motors, Ford, Daimler Chrysler, Toyota, Volvo, Hyundai, Maruti, Nissan, Honda, Volkswagen and Fiat among others.

lexium is organising the 1st international exhibition on plastics and polymers for the automotive sector – Autoplas 2010 – at the Autocluster Exhibition Center, in Chinchwad, near in Pune, Maharashtra from 26-28 November, 2010. India is the second fastest growing automotive market, after China, with over 12 percent CAGR over the past five years. Current sales of around 1.5 million passenger cars are expected to cross five million by 2015 – consuming close to one million tonne of plastics and polymers. The Indian auto sector will witness over 50 varieties of models. This exhibition will showcase capabilities of small, medium and large enterprises as Tier I and Tier II vendors to the Indian auto sector. Raw material, compounds and master batch producers, plastic and rubber moulders, specialised

tools and moulds manufacturers, PU foam suppliers, testing equipment and service providers are the target exhibitor groups to display state-of-the-art technologies for automotive companies in India. Autoplas 2010 is supported by Polymotive.

Prospective visitors include: o OEMs: Tata Motors, Mahindra & Mahindra, GM, Fiat, Mahindra Navistar, Skoda Auto, Force Motors, Volkswagen, Bajaj Auto, Piaggio, Mercedes-Benz, and JCB, etc. o Automotive Tier-1, Tier-2 Suppliers: IAC, TACO, Motherson Group, Faurecia, Plastics Omnium, Varroc, Minda, Mutual, Supreme, and Brite, etc. o Entrepreneurs, directors, plant heads, top management of research and development, production and marketing heads, SMEs And direct decision makers, consultant and automotive liaison agencies Major ex hibitor groups include raw materials suppliers, processors, machinery and tool manufacturers, and service providers. For more details visit: www.autoplas.in

No Nano... Contd. from P1 customer satisfaction studies with current Tata Nano owners indicating that about 85 percent are satisfied or very satisfied with the car, the company has decided to make the car ‘even more robust’. Tata Motors is providing additional protection in the exhaust system and electrical system making it optional for customers to avail for these measures at no extra cost. The company emphasised that this act does not constitute a recall. As at the end of October 2010, Tata Motors has delivered over 70,000 Tata Nanos. The company has extended deliveries in Kerala (since August 2010), Karnataka, Maharashtra, Uttar Pradesh and West Bengal (since October 2010).

Festive demand... Contd. from P1

units in the same period last year. Of the total M&HCV sales, 144,861 units were goods carriers and 28,142 units were passenger carriers. The Light Commercial Vehicle (LCV) segment saw an increase of 26.25 percent, accounting for 190,672 units. Unlike PVs, the sales of CVs did not see any significant rise in the month of October. Three-wheelers sales grew 20.74 percent, selling a total of 299,131 units in the April-October period this fi scal. Sales in this segment were mainly driven by passenger carriers that accounted for 246,014 units as compared to 53,117 units of goods carriers. Two-wheeler sales, on the other hand, touched 6,754,133 units, a growth of 29.38 percent as compared to 5,220,399 units of last year. Scooters and scooterettees ruled the segment by recording a growth of 52.11 percent as against 25.60 percent of the motorcycles and 25 percent of mopeds. In October alone the segment grew by 50.38 percent.

C O R P O R AT E

Envisioning E i The Future Of Manufacturing

SINGLE LARGEST CONVERGENCE E

PERSPECTIVE

O 360

INNOVATIONS

Auto Monitor

BREAKTHROUGH INNOVATIONS

For the first time in India, there an event that promises to deliver future solutions for the complete manufacturing & engineering industry. HiTech Manufacturing Show is a first of its kind event bringing the entire industry under one roof. With HiTech Manufacturing as a backdrop for the entire value chain, the show also has HiTech Material Handling and HiTech Automation as concurrent shows to complement the growth process and future of the industry.

Concurrent Shows

Factories of Tech Future | Future Design | Business Strategies

117-19 Feb, 2011 | NSE Ground, Goregaon, Mumbai

Contact: Prachi +91 9820373804 or hitech@infomedia18.in or SMS HITECH to 51818

First in Business Wordwide

Auto Monitor

16 - 30 November 2010

STUDY FICCI Study on India’s Automobile Exports:

Is India a signiﬁcant global player? The Indian automobile industry has attained new heights in the last ten years. It has seen vehicle production growing rapidly and industry has been making significant contribution to employment, directly and indirectly, and also to the kitty of indirect taxes. Today, all major OEMs are in India and many of them have made India a hub for their small cars and exports. In December 2006, the Government had formulated a ten-year Automotive Mission Plan with an aim to achieve domestic vehicle market of $82-119 billion by 2016 and $12 billion export of vehicles and tractors. It also aimed at making India the seventh largest vehicle producing country in the world by 2016. And, we have already achieved this milestone in 2010, which is good six years ahead of the target. However, even with these achievements, India’s contribution to global automobile industry remains low. Through this study, we have analysed India’s position in global automobile market and

also India’s exports of automobile to major countries.

Automobile Exports ■ India’s total exports of automobiles for FY10 were $4.5 billion up from exports of $3.9 billion in FY09, indicating a growth of approximately 14 percent (in value terms). Indian Automobiles exports have more than doubled in the last five years. India exported automobiles worth $1.8 billion in FY06, which increased to $4.5 billion in FY10. ■ Although, the automobile exports are growing at a healthy CAGR of 26 percent for the past four years, the growth rate of total automobile exports (in value terms) has fallen by half in FY10. Automobile exports of India grew by 19 percent in FY07 and the growth rate increased to 53 percent in the year FY09, but it has again come down to 14 percent in the year FY10 (Ref: Graph 1). Globally, India ranks 22nd among automobile exporting countries, which is worth $415 billion. The top five automobile

exporting countries are listed in Table 1. ■ Share of India in global exports of automobile was merely one percent in 2009, whereas Japan, the largest exporter of automobiles, exported automobiles worth $75 billion constituting a share of around 19 percent in global exports. Some of the other major countries, which are ahead of India in terms of global automobile exports, are the UK, Germany, Italy, Netherland, South Korea, and Mexico, etc. In terms of share in India’s total exports, automobile’s share has inched from 1.7 percent in FY06 to 2.5 percent in FY10.

Segment Wise Exports:

Table 1: Exports (in value) and share of top five automobile exporting countries in world – 2009 Rank

Country

Exports to World (in US $ Billion)

Share in Global Exports

Japan

75.46

18.77%

■ The four categories of auto2 USA 43.63 10.85% mobiles analysed in the study 3 Belgium 28.29 7.04% are tractors, passenger vehicles, 4 Canada 25.82 6.42% commercial vehicles and twowheelers. 5 France 25.72 6.40% ■ Graph 2 shows that passen22 India 4.15 1.03% ger vehicles constitute the major Source : U N portion of total automobile exports of India. Its share Table 2: Segment wise automobile exports in last 5 years in total automobile exports of India in FY10 was more Commodity 2005-06 2006-07 2007-08 2008-09 2009-10 than 72 percent, up from 62 223.88 286.81 376.5 404.87 333.7 Tractors(excl percent in FY06. Also, autotractors of HDG mobile exports’ growth in the no.8709) last five years has been led 1114.85 1337.95 1640 2714.8 3254.23 by passenger vehicles with Passenger exports under this category Vehicles growing with a CAGR of 31 Commercial 197.39 192.11 257.7 321.25 291.33 percent (Ref: Table 2). India’s Vehicles passenger vehicle exports 252.94 304.71 293.5 487.71 589.11 have increased from $1.1 bil- Two-Wheelers lion in FY06 to more than $3 Total 1789.06 2121.58 2567.7 3928.63 4468.37 billion in FY10, an increase of more than three times. This is despite the dip in exports growth rate in the year FY10 as compared to FY09. Growth rate of passenger vehicles exports decreased to 20 percent in FY10 as compared to a whopping increase of 65 percent in FY09. ■ Another segment, which has experienced a surge in growth of exports, is two-wheelers. Exports of two-wheelers grew by 21 percent in FY10 as compared to 66 percent in FY09. Although, there is a fall in the growth rate of two-wheelers exports in FY10 as compared to FY09 which is in line with other major segments of automobiles also, but the segTable 3: Projected automobile exports of India for next ment has experienced a healthy six years growth of 24 percent (CAGR) Year Projected Automobile Exports (in in the last five years. Share of value terms) (US $ Billion) two-wheelers in our automobile exports has remained in the nar2010-11 5.62 row range of 11 to 14 percent for 2011-12 7.06 the period. 2012-13 8.88 ■ Commercial vehicles and tractors both have grown by around 2013-14 11.16 10 percent (CAGR) in the last five 2014-15 14.03 years but have experienced neg2015-16 17.64 ative growth in FY10. Share of both commercial vehicles and Table 4: Top five export destinations for Indian tractors have fallen in our automobile exports during 2005-09. automobile exports Commercial vehicles’ share in Countries Export in 2006-07 ($ mn) Exports in 2009-10 ($ mn) our automobile exports has fallUK 51.96 481.02 en from 11 percent to 7 percent during the period and tractors’ Italy 116.69 433.77 share has fallen from 13 percent Germany 84.49 233.22 to 7 percent. Netherland 27.09 217.51

Automotive Mission Plan 2006

As per the Automotive Mission Plan prepared by Department of Heavy Industry, Government of India, Indian Automobile industry aims to achieve an output level of $145 billion accounting for more than 10 percent GDP and providing additional employment to 25 million people

South Africa

201.3

209.95

Source: Ministry of Commerce & Industry

by 2016. According to the report, this would imply a domestic vehicle market of $82-119 billion and export market of $12 billion of vehicles and tractors. Given the automobile exports of $4.5 billion in FY10 and the growth, Indian automobile

industry can achieve this target even before 2016. Given the target of $12 billion by 2016, it needed to achieve an export level of $4.8 billion by 2010 and Indian automobile exports have already reached a level of

Contd. on P40

Auto Monitor

16 - 30 November 2010

STUDY

Is India a signiﬁcant global player? Contd. from P38 $4.5 billion in FY10. Moreover, Indian automobile exports have been growing at a CAGR of more than 25 percent in the past five years and assuming that the industry would be growing at a similar rate in the coming year also, it is expected to achieve its target by 2014. By FY16, Indian automobile exports are expected to reach a level of $ 17.7 billion (Ref: Table 3).

Major Export Destinations ■ The key export destinations for Indian automobile exports in FY10 were the European Union (Germany, Belgium, The UK, The Netherlands and Italy), SAARC countries (Sri Lanka, Nepal, and Bangladesh) and South Africa. Country wise Top 5 exports destinations are listed in Table 4.

■ The UK was the largest importer of automobiles from India in FY10. Exports to the UK (in value terms) have grown almost eight times, from merely $52 million in FY07 to $481 million in FY10. Over the past four years, exports to the UK have been growing at a CAGR of 109 percent. Similar is the case of Italy, which is the second largest importer of Indian automobiles. The growth rate of automobile exports to the UK

has been much higher than that of Italy. ■ There has been a surge in exports of passenger vehicles from India, especially to the European Union. Passenger vehicle exports constituted more than 72 percent of total automobile exports of India (in value terms) in FY10. In fact, share of passenger vehicles exports in total automobile exports to the UK was more than 98 percent in FY10. Similarly, in

case of other Top 4 countries, this share is either more than or close to 90 percent.

Top Export Destinations: Segment Wise Two-wheelers: ■ In this category, SAARC countries have been one of the key destinations for Indian exports with three of the SAARC countries – Sri Lanka, Bangladesh and Nepal – featuring in the Top

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6 export destinations for Indian two-wheelers segment. However, exports to Sri Lanka, which used to be the largest importer of twowheelers from India in FY07, have fallen by almost 20 percent since FY07 to reach a level of $63 million of exports in FY10. ■ The topmost destination for exports in this segment is Nigeria, which imported twowheelers worth $103 million in FY10, up from $85 million in FY09, a growth of 21 percent approximate. In fact, Nigeria has emerged as one of the fastest growing destination for Indian two-wheeler exports over the past four years. India exported two-wheelers worth merely $6 million to Nigeria in FY07, which has grown by 15 times to reach an export level of $103 million in FY10. Amongst the Top 5 export destinations in this segment, Colombia experienced the highest increase in growth of imports from India in FY10. Exports of two-wheelers to Colombia increased by 45 percent in FY10 over FY09 (Ref: Graph 3). Tractors (HS code – 8701) ■ In this segment, USA is the single largest export destination for India. Its imports from India in this category were $109 million in FY10. However, over the last four years, India’s tractor exports to USA have fallen by more than 15 percent. India exported tractors worth $129 million to the USA in FY07. ■ Nepal, which is the second largest export destination for Indian tractors, has experienced the highest jump in its imports from India in this segment from $8 million in FY07 to $43 million in FY10, an increase of 450 percent. ■ Bangladesh, Turkey and Sri Lanka are the other key export destinations for India under this category. Passenger Vehicles: ■ In this category, the European Union is clearly the largest export destination (Ref: Graph 5) with four out of five topmost export destinations belonging to this region (the UK, Italy, Germany and Netherland). Out of these, the UK and Italy have led this increased growth in exports to the region. Exports to the UK have increased by as high as 900 percent in the last four years. Similarly, exports to Italy have increased by around 300 percent in the last four years. Commercial Vehicles: Singapore has emerged as the topmost destination for commercial vehicle exports. Exports of CVs to Singapore have increased by seven times from a mere $10 million in FY07 to $86 million in FY10. Both Sri Lanka and South Africa appears in the Top 5 export destinations for India in commercial vehicle segment in FY10, but export to these countries have fallen over the past four years by around 18 percent (Sri Lanka) and 70 percent (South Africa).

16 - 30 November 2010

TECHNOLOGY

Auto Monitor

Ten questions to ask before buying a machine vision system tion process, providing answers to ten critical questions for evaluating specific product features.

Didier Lacroix

e are now in a time where companies need to optimise their productivity without compromising their production quality – while still keeping to their tight budgets. Here’s where machine vision systems come in – to ensure quality management and at the same time, help you to save costs. By detecting process errors and defects early in products and their packaging, machine vision helps minimise waste and reduces the cost of recalls, as well as the trouble of having to scrap defected products. Finding the right vision system can be daunting with the wide range of vision systems available today. Simply fi nding a system that can perform the necessary vision tasks is not enough – other factors such as variations in lighting conditions, networking and communications capabilities, accessories and product support options as well as ongoing postdeployment support need to be considered to ensure a successful deployment. This article will guide you through the vision system selec-

1. Does the vision system make it easy to set up applications, create custom operator interfaces and administer vision system networks? Vision applications mostly do not require elaborate runtime interfaces, but operators typically need to interact with the vision system during part changeovers to change tolerance parameters and to determine the cause of part failures. The vision system should enable easy configuration of these and other facets of your application without coding in Visual Basic or a proprietary script-based language. Network management tools should be included in the software to simplify remote administration of multiple systems including tasks such as back-up, image playback, fi rmware upgrades and context sensitive help documentation. If maximum ease of use and affordability are priorities, you should ask vision system providers if they offer a ‘plug-and-go’ solution. This enables even novice users to set-up, deploy and monitor vision applications using a simple touch-screen operator display panel with no PC required. 2. What is the importance of part location tools, and how can I assess their performance? Part location software tools fi nd the part within the camera’s

field of view. Typically, the fi rst step in any vision application, from the simplest robot pickand-place operation to the most complex assembly verification task, is also the most critical step as it often determines the success or failure of an application. Vision systems are trained to recognise parts based on a ‘model’ image, but even the most tightly controlled manufacturing processes allow some variability in the way a part appears to the vision system. Therefore, the vision system’s part location tools must be intelligent enough to quickly compare model images to the actual objects moving down a production line, regardless of which side of the part faces the camera, its distance from the camera, shadows, reflections, line speed, and normal variations in appearance. 3. Does the vision system have a complete set of image preprocessing tools? Image pre-processing tools alter the raw image to emphasise desired features, while minimising undesirable features. This prepares the image for optimal performance by more powerful vision tools and can significantly improve the accuracy and robustness of the overall system. Pre-processing tools also increase the contrast between the part and its background, mask insignificant and potentially confusing image features, eliminate ‘hot spots’ reflecting off the part surface, and smooth rough surface textures.

A complete set of image pre-processing tools should be included with the vision system chosen. 4. What should I look for in character reading and verification capabilities? W hether you’re reading stamped alphanumeric codes on automotive parts or verifying date and lot code information on medicine bottles or packages, there are several capabilities to look for when evaluating character reading and verification tools such as statistical font training, image pre-processing tools and instant image recall. ● Statistical font training builds a font by learning models of characters that appear in a series of images. The images should include multiple instances of each character and span the full range of quality likely to occur in production. The resulting font will be highly tolerant of normal variations in print quality, whether due to poor contrast, variable locations, degradations, or variations in stroke widths. Unless it is known that every code will be marked with the same quality in the reference images used to learn the character models, statistical font training can be crucial for the success of your reading or verification application. ● Image pre-processing tools optimise a trained model by sharpening the edge contrast of characters and fi ltering out extraneous background in the image. Optimised models maximise the reliability and repeatability of

the vision system. ● Instant image recall enables line operators and technicians to quickly and easily view failed images on a display. Whether the failure is caused by a camera jarred out of position or a damaged label, it is important to immediately know the cause of failure for corrective action to be taken. 5. How can I determine the repeatability of a vision system’s gauging tools? For applications involvi ng cr it ica l d i mensiona l measurements, the vision system’s gauging tools must be accurate and perform with a very high degree of repeatability. The vision system should have a full suite of gauging tools to choose from to fit the requirements of your measurement application without having to write custom scripts or functions. 6. How do I evaluate industrial code reading tools and what are some specific features to look for? Industria l env ironments demand a vision system that can read 2D Data Matrix codes that are degraded, poorly marked, or vary in position from part to part. The vision system should perform well regardless of the part material (such as metal, glass, ceramic, and plastic) and the type of part marking method employed (such as dot peen, etching, hot stamping, and inkjet). Beyond these criteria, there

Contd. on P45

Auto Monitor

16 - 30 November 2010

CORPORATE

BSA Motors reworking service... Contd. from P21 Although there are talks of a national electric vehicle policy likely to be announced by the Government soon, only the State of Delhi offers consumers subsidies to the tune of 29 percent. That includes waiver of road tax, value added tax and 15 percent discount on vehicle price that is not extended to other geographical regions. In fact, the Union Government, in the last Union Budget has imposed an excise duty of four percent on electric vehicles from this year, but eliminated import duty on some key inputs like battery, motor and controller for EVs in a bid to promote the fledgling industry.

No Capacity Ramp Up At present, BSA Motors has a network of over 100 dealer-

ships. Plans are currently being executed to upgrade its service capability. ‘We are well known for our service and spare parts availability, which looks like the only USP we have at the moment,’ remarked Srinivasan. He claimed BSA motors possessed the best service network along with trained personnel and was the only player in the market with no consumer court cases pending against it. It is believed that other players in this segment have a few hundred court cases pending against them. The company meanwhile, has no plans to invest further in expanding capacity till it gets its product portfolio right. BSA produces six e-scooter models and has a production capacity of 3,000 units per month at its Ambattur plant in Chennai. At present the

Electric scooters assembled at BSA Motors’ facility in Chennai

company produces only 10,000 units per year and expects to uti-

lise full capacity within two to three years.

The company has localisation content of 28 percent on its e-scooters, while 72 percent components are imported from China and Taiwan. ‘We have to do so owing to the lack of development of the supply chain for the EVs in India,’ Srinivasan said. Some of the indigenised products for the company’s e-scooters include batteries, tyre tubes, wiring harness, shock absorbers, lamps and bulbs as well as mechanical parts. Motors and controllers are assembled locally. ‘E-scooters require subsidies like lower road tax and lower VAT to thrive. The Union Government has been talking in terms of releasing a national electric vehicle policy, but till that happens, the e-scooter industry is expected to continue maintaining a low profi le.

Third party logistics... Contd. from P14 the rail and road networks. The infrastructure hubs will enable logistics service providers to improve scale-efficiency and provide integrated logistics solutions, thereby reducing the cost of the corporates’ logistics operations and spurring adoption of 3PL services by the corporate sector.

Potential for 3PL is highest in organised retail and consumer durables CRISIL Research’s study on 3PL potential (Ref: Exhibit 3) of eight non-bulk industries concludes that the potential for 3PL adoption and growth is the highest in organised retail (comprising all products) and consumer durables. This is closely linked to these industries’ intense requirement of warehousing facilities, efficient transport and streamlined handling of goods in the inbound and outbound supply chains. Logistics costs therefore account for a higher proportion of total revenues in organised retail (estimated at 5-6 percent) and consumer durables, than in other non-bulk industries such as textiles, pharmaceuticals and automobiles. T he st ud y c on sidered average i nventor y turnover, average number of warehouses/distribution centres, warehousing infrastructure cost as a percentage of total cost, and fragmentation of vendors and the distribution chain. CRISIL Research expects the share of retail 3PL services in total organised retail logistics to rise from 10-11 percent currently to 15-16 percent by FY15. Although 3PL penetration would be the highest for organised retail and cars, industries like IT hardware and FMCG (fast moving consumer goods) are also likely to adopt 3PL services rapidly given the rising complexity in its supply chain. (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 November 2010

TECHNOLOGY

Auto Monitor

Ten questions to ask before buying... Contd. from P43 are specific code reading features worth inquiring about such as code quality verification and reading speed: ● Code quality verification — Look for products that can verify code quality to established standards. This informs you how well the marking process is working. ● Reading speed — Depending on your production line speed and throughput requirements, you may need a very high-speed reader. The fastest vision systems available today can read more than 7,200 codes per minute. 7. What networking and communications features should I look for? Networking is essential to many vision applications as a means to share data, support decision-making, and enable highly-efficient integrated processes. For example, networking enables vision systems to transmit pass/fail results to PCs for analysis, or communicate directly with PLCs, robots, and other factory automation devices in an integrated process control system. A system that supports the complete set of standard networking protocols should be chosen for vision systems that need to be linked to PCs at the enterprise level. ● TCP/IP client/server enables vision systems to easily share results data with other vision systems and control devices over Ethernet without code development. ● SMTP (Simple Mail Transfer Protocol) enables you to immediately receive an e-mail on your PC or cell phone, when a problem occurs on the production line. ● FTP (File Transfer Protocol)

allows inspection images to be stored on the network for later analysis. ● Telnet is an Internet standard protocol that enables remote login and connection from host devices. ● DHCP (Dynamic Host Configuration Protocol) allows a vision system to automatically receive its network IP address from a server, enabling true plugand-play performance. ● DNS (Domain Name Service) allows you to assign each vision system a meaningful name, such as ‘Bottling Line System 1’, instead of having to use a numeric IP address. To integrate a vision system with the PLCs, robots and other automation devices in the plant, the system chosen must also support the following: ● Industrial Ethernet protocols such as EtherNet/IP, PROFINET, MC Protocol and Modbus TCP. These enable vision systems to be linked to the most popular PLCs and other devices over a single Ethernet cable, eliminating the need for complex wiring schemes and costly network gateways. ● Fieldbus networks, including CC-Link, DeviceNet, and PROFIBUS. A protocol gateway accessory is usually needed to add a vision system to a Fieldbus network. ● RS-232 and RS-495 serial protocols, needed to communicate with most robot controllers. Finally, as more vision systems are used throughout the manufacturing process, the need for a centralised way of managing them becomes increasingly important. Make sure the vision system chosen comes with soft-

ware that allows easy control and monitoring of the operation of all vision systems remotely over the network from any location, on or off the plant floor. 8. What should I know about vision system accessories? Too often, much attention is given to evaluating the vision system that accessory products are almost an afterthought. But the choice of accessories can go a long way towards ensuring troublefree system integration and in the case of lighting, can even make or break the application. For quick and painless integration of the vision system, it is wise to buy from a vendor that offers a complete family of compatible accessories. This gives the assurance of knowing that every accessory has been tested and confirmed to be compatible with the vision system. Accessories to look for include: ● Lights — No two production areas have the same ambient light conditions, and parts can exhibit a wide range of surface characteristics. Nearly every machine vision solution requires a unique lighting approach to meet its objectives and optimise performance. Vision

system vendors should offer a variety of lighting options, including – ring lights, which provide soft, even illumination from all directions; back lights, which create maximum contrast between a part and its background; and dark field lights, which provide low-angle illumination for imaging of part surface irregularities. ● Communications modules — Ensure that your chosen vendor offers communications peripherals such as I/O modules and network gateway modules that support quick and easy connectivity between the vision system and PLCs, robots, and other factory automation devices and networks. ● Operator interface panels — A networked operator interface panel allows easy plug-and-go setup and deployment, plus ongoing monitoring and control of vision systems without a PC. When selecting an operator interface panel, look for one with an intuitive, touch-screen interface. ● Camera enclosures — Some vision systems are assembled into rugged, IP and NEMA-rated metal cases to withstand dust and moisture without requiring a separate enclosure accessory. However, if the environment in your plant is especially harsh or requires frequent wash down of equipment, ask your prospective supplier if they offer external enclosures prequalified for use with the system. 9. Does the vision system require a PC? While some vision applications are complex and require more robust capabilities, many of

them may be addressed with an affordable, standalone solution. For those applications, vendors should offer a standalone vision system that does not require a PC – during configuration or in production mode. The system should offer true plug-and-go performance that enables quick configuration of the application, from start to fi nish, right out of the box. Also, the vision system should not require a PC to be rolled onto the factory floor every time changes to the application need to be made. Finally, a true standalone vision system should enable hooking up a monitor for live image display without a PC. 10. Does the vision system supplier provide the support and learning services I need? Even the highest performance vision system is only as good as the suppliers, who stand behind it. Whether you buy your vision system from a distributor, a systems integrator, or direct from the manufacturer, it is important to know beforehand the full range of support services available. Note that your chosen vision supplier understands your unique support requirements and provides you with all the resources needed during every phase of the project, from application development and systems integration, to deployment and beyond. One more thing to note is that the best suppliers don’t merely try to sell a product — they take the time to carefully understand and evaluate all of your requirements before proposing a solution. (The author is Senior Vice President, International Sales & Services, Cognex)

16 - 30 November 2010

GLOBAL WATCH

Auto Monitor

GM may make $13 billion a year G

M is making an aggressive pitch to investors in the run up to its initial public offering, saying it could earn $13 billion a year or more if US auto industry sales return to normal levels, and touting its growth potential in fastgrowing emerging markets such as China. GM’s pretax earnings could rocket to $19 billion if industry sales hit a high point and profit margins reach 9 percent to 10 percent. But even if US sales scrape by at 10.5 million to 11 million, he said, GM can break even with a market share of 18 percent or 19 percent because it has streamlined operations and lowered expenses. GM’s market share this year is 19 percent. The company will continue to improve its profitability and pay down its debt. Also in GM’s favour, he said, are hourly labour costs — including hourly retiree labour costs — that have fallen from $16 billion in 2005 to $5 billion this year. GM North American President Mark Reuss added that the automaker has ‘right sized’ its dealer network, shrinking it by about 25 percent to around 4,500 dealers. The US, once GM’s primary market, is featured in the video and slide show, but the automaker heavily emphasizes its strategy for increasing sales in fast-growing foreign markets. About two-thirds of GM’s sales are outside North America, Liddell said, and the automaker has it sights on expanding further in the emerging markets of Brazil, China, India and Russia.

International Operations GM already has boosted its market share in China over the past 10 years from 3.4 percent to 13.3 percent, said President, GM’s International Operations, Tim Lee. GM’s sales in China have grown from 75,000 vehicles in 2000 to 1.8 million last year. GM logged record sales in China last month — almost 200,000 vehicles — bringing its sales for the year to 1.98 million, a 36 percent gain. GM is on pace this year, for the fi rst time, to sell more vehicles in China than in the US. In the next four years, the automaker plans to introduce more than 25 new vehicles in China. GM said it is the top-seller in Brazil, Russia, India and China, with 12.7 percent of the combined market. It’s the thirdlargest seller in Brazil, with a share of 19 percent. GM said it will post third quarter earnings between $1.9 billion and $2.1 billion. The exact figure will be announced Wednesday. As it returns to public trading on the New York Stock Exchange, GM will offer 365 million shares of common stock for sale, for up to $10.6 billion, as well as $3 billion in preferred stock. The Treasury Department plans to sell up to a third of the 61-percent stake it got in GM in the government bailout of the auto industry, at least 263.5 million shares. The United Auto Workers health care trust fund will sell 71 million shares and the Canadian and Ontario governments will sell 30.5 million. Chrysler and GM are expected to report strong third-quarter earnings, reflecting a continued

turnaround for the two companies that declared bankruptcy in 2009 and required a government bailout to remain in business. GM may have made between $1.9 billion and $2.1 billion in the third-quarter, on $34 billion in revenues. Chrysler generated $326 million in operating profit in the fi rst half of the year, including $183 million in the second quarter. Morgan Stanley forecasts the figure will hit $204 million in the third quarter and $232 million in the fourth. Ch r ysler CEO Serg io Marchionne, who also is CEO of its partner, Fiat, has said net profit has not been possible because of the high interest costs on Chrysler’s $7.4 billion in government loans and the liquidity needed to update 75 percent of its vehicle lineup by the end of

the year. Chrysler reported a net loss of $172 million in the second quarter, down from $197 million in the fi rst three months. A year ago, it reported a $3.8 billion net loss. In outlining a five-year business plan a year ago, Marchionne said Chrysler’s fi nancial goal was to post an operating profit in the range of the break-even point and $200 million in 2010, and to start generating net profit in 2011. Detroit-based GM has been gaining momentum, having slimmed down operations and reduced debt during last year’s bankruptcy. The automaker is fetching higher prices for new cars and trucks and relying less on profit-damaging discounts to sell vehicles, an indicator its lineup is resonating with consumers, company executives say.

Mark Reuss, President, GM North America

Auto Monitor

GLOBAL WATCH

GM to build small Cadillac in Lansing, invest $190 million G

M plans to build a compact-sized Cadillac at its Grand River Assembly plant in Lansing, a $190 million investment that will put 600 people to work, according to a report in the Detroit News. The automaker is expected to call its new Cadillac the ATS. It will be smaller than the Cadillac CTS and similar in size to Cadillac BLS sold in Europe and help automaker effectively compete with compact BMW and Mercedes Benz sedans. The Cadillac announcement is the latest in a series of new products and investments by the Detroit automaker, which emerged from bankruptcy last

year and is expected to launch its initial public stock offering in mid-November. With the Grand River investment, GM will have pumped more than $3 billion in 20 US plants, creating or preserving about 7,350 jobs since emerging from bankruptcy 14 months ago.

Labour Agreement The $707 million, 2.5 millionsquare-foot Grand River factory, on 111 acres, was built in 2001 and employs 1,133 workers who already build Cadillac’s, including the CTS, CTS-V, SRX and CTS Wagon. It started production on Cadillac CTS Coupe and CTS Coupe V in June. It was unclear

whether GM and the UAW are seeking a labour agreement for the Grand River plant similar to one at the Orion Township assembly plant. Under that pact, specific to Orion Assembly, about 60 percent of hourly workers recalled to the idled plant to build two new small cars will get the traditional tier-one wage of $28 an hour with benefits. The remaining 40 percent will get a second-tier wage of about $14 an hour; the split will be based on seniority. The Orion plant deal was struck to help GM make a profit on small-car production, and was key to its decision to add the Verano to the Buick lineup.

GM plans to recall 1,550 salaried and hourly workers to the Orion plant, which was closed for retooling in November. A replacement for the Chevrolet Aveo subcompact also starts production next year at Orion Assembly. GM didn’t have great success with previous small Cadillac’s; neither the Cimarron of the early 1980s nor the Catera of the late 1990s was well received. The Grand River plant isn’t the only Lansing-area GM facility getting a boost. GM announced plans last week for $37 million in upgrades at its Delta Township Assembly plant. GM reported net profits of $2.2 billion in the fi rst half of the year.

16 - 30 November 2010

Truck sales lead revival in the US

ord and Chrysler were the big winners in October, as strengthening demand for light trucks boosted US auto sales to their highest level in more than a year, according to a report in the Detroit News. GM recorded a small sales gain, while Toyota was the only major automaker to suffer a decline. For the second month in a row, light truck sales exceeded car sales, capturing 52.8 percent of the market, the highest level in three years, analysts said. Compared with October 2009, monthly sales were up 13.4 percent, led by a 23.5 percent surge in light truck sales. On an annual basis, the selling pace rose above 12 million cars and light trucks for the fi rst time since August 2009. Among Detroit’s automakers, Ford reported a 19.3 percent sales increase, while Chrysler sales surged 37 percent, according to Autodata Corp. GM sales were up 4.2 percent, but the automaker said sales of its four remaining core brands — Chevrolet, Buick, GMC and Cadillac — were up 13 percent from last year. The top two sellers in the market were full-size pickups: the Ford F-Series, followed by the Chevrolet Silverado.

Vehicle Incentives Toyota attributed its 4.4 percent sales decline to the shift in demand toward trucks, where its models have smaller shares of the market than its cars do. But that shift didn’t seem to affect Toyota’s Japanese rivals Nissan and Honda. Their sales rose 16.1 percent and 15.6 percent respectively. Toyota’s incentives were lower than the discounts offered by the Detroit automakers, but they were up sharply from year-earlier levels, and the gap between the Japanese and US automakers is narrowing. In October, Toyota’s incentives were averaging $2,118 per vehicle, up $731 from a year ago, according to Autodata. Honda incentives averaged $2,021 per vehicle, up $874, while Nissan’s incentives totalled $2,530 per vehicle, down $349. GM’s incentives averaged $3,103 per vehicle, down $1,001 from October 2009. Chrysler’s incentives, averaging $3,416, were the highest among the major players, but were down $575 from a year ago. Ford’s incentives were up $208, on average, at $2,761. GM and Ford benefited from rising demand from commercial fleet customers. Chrysler struggled in 2009 and early this year with a dearth of new products but scored a big hit with its redesigned Jeep Grand Cherokee. Its sales were nearly four times higher than the previous October. Dodge Ram sales rose 41 percent last month as the market swung back to trucks, benefiting Chrysler, which was hit hard in 2008 when demand shifted away from trucks.

16 - 30 November 2010

Toyota to showcase Prius family T

oyota is likely to reveal the next model in what will become a family of Prius hybrid cars at the Detroit Auto Show in January next year, according to a report in the Detroit News. The Japanese automaker recently showed US dealers two new Toyota Prius gas-electric models — a compact Prius and a lift back that’s slightly larger than the current midsize Prius car. The new Prius is one of seven hybrids that Toyota plans to produce before the end of 2012, including a plug-in version of the current Prius car. Toyota is the world’s leading manufacturer of hybrids; at the end of June, it had sold 2.6 million hybrids around the world. But the automaker plans to match rivals coming out with extended-range plug-ins and electric cars, such as GM’s Chevrolet Volt and Nissan’s electric Leaf car, which go on sale in December. Toyota’s own experience showed that car buyers preferred the easy-to-refuel Prius over an all-electric RAV4 SUV that the automaker offered for lease a few years ago. But Toyota will display an all-new, electric RAV4 at the Los Angeles Auto Show in November that it plans to put on the market before the end of 2012. By then, it plans to sell a small allelectric car, as well as the plug-in Prius, which is expected to cost between $3,000 and $5,000 more than a traditional hybrid. The pace will depend on the availability of refuelling stations. By 2015, Toyota plans to offer leases on fuel-cell vehicles in areas where hydrogen stations have been installed. Toyota engineers are reporting substantial progress in the development of zero-emission fuel-cell technology.

Smart-grid technology for plug-ins T

oyota is pairing its little known housing business with its expertise in green cars to sell computer systems that link homes, utilities and vehicles to reduce energy use. Toyota says the launch of its home smart grid system in Japan will coincide with its plugin hybrid cars going on sale in early 2012. Called the Toyota Smart Centre, it allows people to see on TV screens and mobile handsets how much electricity is being consumed by a household, how much a plug-in vehicle has charged, and how much electricity has been stored in the home. It calculates the most efficient way of using energy, eliminating waste by shutting off gadgets when they aren’t being used and maximizing the recharging benefits of hybrids, which recharge as they run. Utilities can also be used when rates are cheapest such as overnight to heat stored water. The changes sound small, but the automaker says they can add up to significant savings when combined with computerized monitoring.

GLOBAL WATCH

Auto Monitor

Nissan Q2 proﬁt jumps to $1.2 billion N

issan raised its fullyear forecast today after reporting a surge in quarterly profit as rising vehicle sales more than offset the drag from a strong yen, according to a report in the Associated Press. Nissan’s net income jumped to 102 billion yen, or $1.18 billion, from 25.5 billion, or $280 million, a year ago. Nissan’s sales rose 21.4 percent to 2.27 trillion yen, or $26.4 billion, in the July-September quarter, the second quarter of the Japanese fi scal year. In the fi rst half of the fiscal year, Nissan earned 208 billion yen, or $2.3 billion, despite the yen’s rise to near-record highs. But Chief Operating Officer

Toshiyuki Shiga said the company’s performance in the October-March semester was likely to be less robust because of the strong yen and rising raw material and engineering costs. The yen’s rise against the dollar and other currencies raises the relative cost of domestically produced vehicles and reduces the value of export earnings. Nissan now expects a full-year profit of 270 billion yen, or $3.2 billion, on sales of 8.2 trillion yen, or $91 billion. In May, it had forecast an annual profit of 150 billion yen, or $1.7 billion. Nissan, which makes the Altima and Versa cars, will roll out an all-electric Leaf car in Japan and the United States next month.

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16 - 30 November 2010

GLOBAL WATCH

Auto Monitor

Toyota, Honda recalling vehicles for possible brake ﬂuid leaks T

oyota plans to recall 740,000 Avalon, Highlander and Lexus models in the United States to address possible brake fluid leaks - part of a worldwide recall of 1.5 million vehicles. Honda is also likely to recall an undetermined number of vehicles because of the same issue, according to a report in the Associated Press. Toyota recently announced that it was launching the recall of 2004-06 models, including the Lexus RX330, GS300, IS250, and IS350. Honda said it would recall certain 2005-2007 model year Acura RL sedans and Honda Odyssey minivans from the 2005 to early 2007 model year due to brake fluid leaks. The company did not immediately know how many vehicles would be covered by the recall. The recall to replace a brake master cylinder seal covers the 2005-06 Avalon while most of the other vehi-

Siemens to sign EV contract in China S

iemens may sign a contract to supply a Chinese city with electric-vehicle charging infrastructure. The company declined to name the city as the deal hasn’t yet been approved by the government. Siemens will install the chargers in the city within three months. The Munich-based company has talked with Chinese utility companies and cities including Shanghai, Guangzhou and Chongqing about providing charging infrastructure. Siemens, whose businesses includes high-speed trains, medical equipment and power turbines, is seeking to provide electric-vehicle charging and components for automakers such as GM, Nissan and Volkswagen in the world’s biggest auto market. China is offering buyers of plug-in hybrids and pure electric cars subsidies of as much as 60,000 yuan ($9,000) to help cut pollution and reduce oil dependency. Siemens is also in discussions with domestic and foreign automakers in China to provide components for electric cars, said Chief Executive Officer, Siemens Northeast Asia, Cheng Mei-Wei. Earlier Siemens won a contract to provide information technology and service support to London’s planned electric-vehicle charging network through November 2013. The company’s electric vehicle-related businesses include supplying batteries and other components, charging infrastructure, as well as gridmanagement expertise. Automa kers a re under pressure from governments, env ironmental groups and consumers to sell models that consume less gasoline and emit fewer gases linked to global warming. China’s government aims to subsidize at least 4 million of these cars by 2012.

cles recalled are for the 2004-06 model years. The recall address concerns ‘that a small amount of the brake fluid could slowly leak from the brake master cylinder, resulting in illumination of the brake warning lamp.’

Safety Risk The recall was prompted by Japanese law that bars vehicles from leaking brake fluid while in use. Toyota said even though the issue doesn’t pose a safety risk under US law, ‘to alleviate potential customer concerns and avoid confusion’ it will recall the vehicles worldwide. Toyota said the recall was to respond in case customers didn’t use Toyota

genuine brake fluid that didn’t include polymers. The polymers act as lubricants for certain brake system components. If during vehicle maintenance, brake fluid is used that does not contain such polymers or only small amounts, a part of the internal rubber seal (brake master cylinder cup) located at the end of the brake master cylinder piston may become dry and may curl during movement of the piston. If this occurs, a small amount of the brake fluid could slowly leak from the brake master cylinder into the brake booster, resulting in illumination of the brake warning lamp. If that happens,

‘the driver will begin to notice a spongy or soft brake pedal feel and braking performance may gradually decline.’

Spongy Feel Toyota told the National Hig hway Tra f f ic Sa fet y Administration that it didn’t think it was a safety issue, and said even with the ‘spongy feel,’ drivers can safely halt their vehicles. It fi rst started getting field reports on the brake warning light in February 2005 — and Toyota attributed it to customers who didn’t use the original Toyota fluid. Toyota and Lexus dealers will replace the brake master cylinder cup with a newly

designed one at no charge to the vehicle owners. Toyota is recalling 1.5 million vehicles to address the issue, the company said in Japan. The Japanese automaker has been much quicker to issue recalls since it suffered an embarrassing series of recalls over sudden acceleration issues. The company this year paid a $16.4 million fi ne for delaying the recall of 2.3 million vehicles for sticky accelerator pedals by at least four months. Toyota has now recalled nearly 7 million vehicles this year in more than a dozen separate recalls campaigns, and more than 11 million over the last 12 months.

Auto Monitor

GLOBAL WATCH

Apfalter to head Magna Europe C anadian-Austrian auto pa rts gia nt Magna International has named Guenther Apfalter to the newly created position of Magna Europe President. Apfalter will continue to serve as President of the group’s Graz, Austria,-based contract manufacturing arm, Magna Steyr, and will report to Magna CEO Don Walker. In April, Magna restructured itself to create a global group structure with global product presidents and regional presidents. The company did not appoint a president for Europe at that time because former co-CEO Siegfried Wolf handled those responsibilities. Wolf’s decision to resign effective November

created the need for a Europe president. Wolf will join an affi liate of Russia’s GAZ Group. Apfalter, who has a degree in agricultural engineering from the University of Vienna, has been head of Magna Steyr since 2007. Prior to that the 50-yearold Austrian native served as Magna Powertrain’s President for Europe and Asia and as an Executive Vice President and Board Member at Magna Steyr. In another key move at Magna’s European operations, Manfred Eibeck has been appointed president of Magna Russia. He will add this job to his current role as Magna Europe executive vice president. Eibeck also will report to Magna CEO Walker.

Frost & Sullivan’s “Manufacturing Summit 2010” will be held on 2nd and 3rd December 2010 at The Orchid, Mumbai. The fifth edition of the annual event will provide an ideal platform for industry networking, knowledge exchange and will continue to foster promotion of best practices in the industry. In addition to presentations made on aspects most relevant to the manufacturing fraternity, this year’s summit will also host panel discussions on topics of importance and concern to manufacturing companies in India.

Knowledge Areas Covered • Customer Orientation

• Excellence through Automation

• Operational Flexibility

• Asset Care

• Green Productivity

• Visual Management

• Supply Chain Management

• Quality Management Systems

• Innovation

• Material Handling Systems

• Total Employee Involvement (Competence to Change)

• Excellence through software integration

• Inventory Management

Event Highlights • 12-14 Identified Best Practice presentations from the manufacturing industry spread over two days • 4-6 presentations by industry stalwarts on new trends and future challenges for the manufacturing industry • Panel discussions on topics of utmost interest to the manufacturing fraternity. The topics discussed will cover a wide range of areas that continue to pose a challenge and constrain in achieving higher degrees of manufacturing excellence • Opportunity to interact directly with experts and speakers at the end of each presentation • Forum to discuss the constraints and ways to overcome while deploying these best practices in their organization • Participants will have an excellent opportunity to learn about proven practices and hear industry experts speak on what factors contribute towards the successful deployment of these practices • Ideal platform for networking with the best minds in the manufacturing industry • Attendees of Manufacturing Summit will be extended an invite to The Economic Times India Manufacturing Excellence Awards 2010 in partnership with Frost & Sullivan scheduled on 3rd December, 2010 in Mumbai

Who should attend?

Across Industry Segments • Head of Human Resources

• CMDs/MDs

• Change Agents (Head of Improvement Initiatives)

• CXOs • Presidents/Vice Presidents • Executive Directors/Senior Directors • Facility Heads • Senior Level Managers • Head of Operations & Quality

• Plant Managers • IT Managers • Manufacturing Engineers • Industrial Engineers

• Head of Supply chain

• • • • • • • • • •

Automotive Auto Ancillaries Engineering Metals Chemicals & Process Industries Etc. Foods Cement Paper Electronics IT Hardware

Frost & Sullivan welcomes you to be an integral part of this interesting business paradigm dedicated to the Manufacturing fraternity!!

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To know more about the conference, please contact: Abubaker B, Tel: +91 (80) 41783525; Mobile: +91 9886619720; E-mail: abubaker.ahmed@frost.com Caroline Lewis, Tel: +91(22) 4001 3438; Email: caroline.lewis@frost.com

Or visit www.frost.com/ms

16 - 30 November 2010

Airbiquity, Bosch announce partnership A

irbiquity, a leading supplier of connected vehicle solutions, and Robert Bosch Car Multimedia, recently announced a partnership to enable connected vehicle services and offerings for Bosch’s in-car multimedia systems. Airbiquity will work with Bosch on specific global automaker engagements. The two companies are already working to deliver an in-car system for its fi rst joint customer, providing connected vehicle services in 17 countries throughout North America, Europe and Russia. ‘Customer demand for connected vehicle of ferings will continue to grow rapidly. Successful companies will create adaptable Vehicle ICT (Information and Communications Technology) solution platforms that enable deep integration of information and communication technologies with the automobile,’ said Vice President and Automotive Practice Leader, Gartner, Thilo Koslowski. ‘Strong partnerships between leading automotive suppliers and innovative technology providers will be a key success factor in creating winning Vehicle ICT solutions for automakers.’ ‘We pride ourselves on offering a wide array of functions in our in-car multimedia systems, ranging from audio and connectivity to navigation and driver assistance,’ said Programme Manager, Automotive Infotainment, Bosch, Luis Arevalo. Bosch joins a growing number of automotive companies selecting Airbiquity’s Mobile Integration solution. The solution includes connectivity through a consumer’s mobile device and Choreo, Airbiquity’s cloud-based platform for global connected vehicle services delivery. Airbiquity’s service delivery platform’s open, flexible architecture supports expansion for future services as well as all data transport types, which guarantees the widest possible market coverage for connected vehicle solutions. The Mobile Integration solution also provides a comprehensive subscriber service management framework, including web, mobile web and smartphone apps, for integrating the connected vehicle into the consumer’s digital lifestyle. Airbiquity is engaged in integrating advances in software, communications technology and wireless services with vehicles. Its connected vehicle solutions offer automakers a flexible platform for delivering innovative applications and services that help automobiles adapt to the driver’s digital lifestyle. The Bosch Group comprises Robert Bosch and its more than 300 subsidiaries and regional companies in over 60 countries. The Bosch Group is a leading global supplier of technology and services for automotive and industrial sector. The group has a presence in products and solutions in the areas of automotive and industrial technolog y, consumer goods, and building technology and has around 270,000 associates and sales of Euro 38.2 billion in fiscal 2009.

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16 - 30 November 2010

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16 - 30 November 2010

GLOBAL WATCH

Auto Monitor

Marchionne charts blueprint for Chrysler, may draw on the US partners’ expertise in SUVs

hrysler’s new Jeep Grand Cherokee is so popular that it may spawn Detroitbuilt versions for the automaker’s Italian partner, Fiat, according to a report in the Detroit News. Chief Executive Officer, Fiat and Chrysler, Sergio Marchionne recently said that the Jefferson North Assembly Plant would be the only factory to build versions of the SUV for as many as four brands: Chrysler, Dodge, Alfa Romeo and Maserati. Marchionne revealed the unfolding plan in a conference call with investors to announce that Chrysler’s third-quarter earnings exceeded analysts’ expectations. Chrysler now projects its operating profit for 2010 to hit $700 million, up from its original expectation, which was from break even to $200 million. The improving fi nancial picture is helping make possible development of the fleet of new vehicles that Chrysler executives believe will further bolster the bottom line and take the once dying automaker to Wall Street, as a publicly traded company, in 2011. The timetable to add a Detroit-built Alfa, and possibly a Maserati, from Grand Cherokee underpinnings is 12 to 18 months, Marchionne said. Volumes of the high-end Alfa and Maserati SUVs are likely to be low, at least in the beginning, but Chrysler has said it is prepared to add a third shift at Jefferson North when two shifts can’t keep up with the demand. The Grand Cherokee, launched in June, was the fi rst new product under Fiat management. In October, Grand

Marchionne said a decision won’t Cherokee sales were up 291 perbe made for another six to nine cent from the previous year. ‘I’ve months. ‘Until we get that right, never seen a vehicle have this I’m not sure we’re going to comkind of support,’ Marchionne mit capital,’ he said. said, adding that he underestiAlso in the works, Marchionne mated its quality and appeal. confi rmed for the fi rst time, is a Grand Cherokees with dieseven-seat Fiat mini-minivan to sel engines are being shipped to compete against the Mazda5 or Europe and soon will be joined Ford C-Max. It would be built in by the all-new seven-passenger Serbia and sold on both sides of 2011 Dodge Durango, which is in the ocean. Dodge could get a verpreproduction now and will go sion as well. on sale next month. ‘I’m delightChrysler’s third-quarter net ed with the performance of the loss was half what it was at the Jefferson plant here in Michigan,’ end of June — an accomplishMarchionne said. ment for a company that had The SUV could be the backlittle new product to lure custombone of Alfa’s return to the US ers into showrooms. The Auburn market. The brand ceased mainstream sales in 1995. Global volume of the Italian SUVs could total Jefferson North about 5,000, excluding Assembly Plant would the United States. build versions of the SUV The A lfa a nd Maserati SUVs would for Chrysler, Dodge, Alfa likely have as their Romeo and Maserati base engine a turbocharged version of the new Pentastar Hills-based automaker reported V-6 engine built by Chrysler a net loss of $84 million in the in Trenton. Marchionne said a third quarter — due in great part Ferrari engine is also possible. to high interest payments on govTo charge $75,000 for an Alfa or ernment loans — on $11 billion $100,000 for a Maserati, the SUVs in revenue; operating profit for would need powerful engines, a the quarter grew to $239 million, distinct and upscale interior, and bringing the year-to-date operatnew sheet metal for a unique look, ing profit to $565 million. said an Analyst from AutoTrends Net revenue remains on track Consulting. to hit $42 billion, and the autoMarchionne also surprised maker expects a positive cash flow analysts when he said he has of $500 million from the negative not decided whether to build $1 billion forecast at the start of an Alfa Romeo luxury convertthe year. Despite the improvible in Brampton, Ontario, or in ing outlook, Marchionne said Italy, because ‘to be honest with Chrysler has no plans to move up you, I still don’t like the style.’

Sergio Marchionne, Chief Executive Officer, Fiat and Chrysler

its initial public stock offering, timed for the second quarter of 2011. It expects to repay its government loans by 2014. Marchionne said his company needs to show strong results in the fi rst half of next year to set the fi nancial stage. Also, the success

of the 16 all-new or significantly modified vehicles launching this year — most in December — will play out in next year’s results. GM, which followed Chrysler into bankruptcy and in accepting a government bailout, plans to offer its stock for sale.

Auto Monitor

GLOBAL WATCH

16 - 30 November 2010

International auto round-up EUROPE

AMERICAS

Pontos, Finnish Industry Investment to acquire stake in Valmet

Dana CEO resigns

Pontos Group and Finnish Industry Investment recently agreed to invest Euro 10 million into Metso’s fully-owned subsidiary Valmet Automotive, thereby giving them a stake of 34 percent in Valmet Automotive. Metso Group, Velmet’s parent, will strengthen Valmet Automotive’s capital base by converting an internal loan of around Euro 10 million into a subordinated loan. Valmet Automotive operations include engineering services for the car industry. The company’s current production portfolio includes three next generation electric cars and about 25 percent of the company’s net sales this year come from the sales of engineering services. It has been agreed between stakeholders that as the fi rst step Valmet Automotive will acquire Karmann’s convertible roof business in Germany and Poland. The engineering and manufacturing of convertible roofs at Karmann caters to BMW/Mini, Daimler, Renault and Bentley. Karmann’s convertible roof business currently employs over 700 people in Osnabruck, Germany, and Zary, Poland. The net sales of the business to be acquired are estimated to be about Euro 180 million in 2010. Porsche Cayman sports cars, electric Garia golf cars and Think City urban cars are currently manufactured in Velmet’s Uusikaupunki. The plan is to start serial production of Fisker Karma hybrid cars in the fi rst quarter of 2011.

Dana recently announced the resignation of Chief Executive, James Sweetnam, 57, after 16 months. Executive Chairman John Devine will serve as interim CEO while the board searches for a new top executive for the Maumee, Ohio-based automotive supplier. Devine has been with Dana since 2008 and has held the CEO position in the past. He also is past Chief Financial Officer at Ford. Dana reported a third-quarter profit of $46 million compared to a loss of $38 million a year earlier. The company makes axles, driveshafts and thermal management products.

Daimler wins appeal over Chrysler merger dispute Daimler recently won an appeal against a court ruling that it must pay about $324 million to former shareholders of Daimler-Benz AG to settle a case related to its nowunraveled 1998 merger with Chrysler, according to a report in the Associated Press. A Stuttgart court in 2006 ruled that the automaker must pay a group of investors 22.15 per share to resolve the dispute over the valuation of their stock. During the merger, a very small proportion of Daimler-Benz shares were exchanged involuntarily for shares in the merged company. Some shareholders launched court proceedings in 1999, claiming that the exchange ratio used undervalued their holdings. A higher Stuttgart court ruling has overturned the earlier ruling and said the exchange ratio was ‘appropriate.’ It added that no appeal is possible.

Toyota recalls 12,000 cars in Britain Toyota recently recalled 12,000 British cars over a software fault which the company said could make it harder to steer over road safety strips. Toyota’s British arm said that the voluntary recall affects iQ vehicles produced over the past two years. It said the problem has only been seen ‘in very specific circumstances’ in Japan, and that no accidents related to the issue have been reported. Hundreds of lawsuits were fi led against Toyota after the company started recalling millions of vehicles because of acceleration problems in several models and brake defects with the Prius hybrid. Toyota has recalled over 10 million vehicles worldwide over the last year.

Renault to supply engines to Lotus Renault will supply engines to Lotus and Red Bull, according to a Reuters report. Lotus Racing have used Cosworth engines on the marquee’s return to the sport this season but raced with Renault in their previous incarnation from 1983 to 1986 when the late Brazilian Ayrton Senna drove for them. Malaysian-owned Lotus Racing intends to revert to their illustrious predecessor’s name of Team Lotus from next season. Renault said the deal was for the next two years, the same length as the Red Bull contract. Red Bull has used Renault engines since 2007 and has won seven of the 17 races so far this season. The manufacturer said the Renault brand would also be visible on the Red Bull cars’ engine covers, nose cones and on the drivers’ helmets. Renault joins Mercedes, Ferrari and Cosworth in supplying three teams each.

SB LiMotive to supply battery packs for electric Fiat 500 SB LiMotive, a JV between Samsung SDI and Bosch, is likely to supply the battery packs for the electric Fiat 500 to be launched in the US in 2012. The battery supplier replaces the original supplier, A123 Systems of Livonia, which pulled out of the deal earlier this year, saying it expected a competitor to provide the batteries for a lower price and that the volumes planned had been ‘significantly diminished.’ Chrysler is building a North American version of the tiny Fiat 500 in one of its plants in Mexico for sale in the US starting next year. The electric version is to follow in 2012, and will be the fi rst electric vehicle in Chrysler’s lineup. SB LiMotive was established in September 2008 by Bosch and Samsung SDI.

Buick will introduce production version of 2012 Regal GS The performance model of the all-new Regal will include a high-output direct injection two litre turbocharged four-cylinder engine that produces 255 hp and 295 pound-feet of torque. The engine, part of the Ecotec family, will provide V-6 power and four-cylinder fuel economy, said Ecotec Global Chief Engineer and Program Manager, Mike Anderson. When the Regal GS arrives in the second half of next year, it will hit an estimated 19 mpg in the city and 29 mpg on the highway. Buick has already announced its plan to build the compact Buick Verano and intends to introduce an all-new small crossover in the near future. The GS, which was revealed as a concept vehicle at the Detroit Auto Show in January, will come laden with high-tech creature comforts and sports tuned suspension that can adjust to the driver. Known as the Interactive Drive Control System, the system offers three drive modes - standard, sport and GS - and adjusts the suspension, steering and other performance attributes.

Panasonic invests $30 million in Tesla Panasonic has invested $30 million in Tesla Motors, the electric luxury sports car maker. As per the terms of the deal, Panasonic, which already has a working relationship with Tesla through their battery pack collaboration, purchased Tesla common stock at $21.15 per share, acquiring approximately a two percent stake in the company. Tesla and Panasonic had an existing relationship as they entered into a deal in January to develop lithium-ion battery packs for Tesla cars. Panasonic plans to invest around a billion dollars in developing products focused on green tech by 2012, including technology for home-energy monitoring systems.

Magna reports $241 million third-quarter profit Magna recently announced that its third-quarter profits increased four-fold on a sharp increase in sales as global auto production ramps up. The Aurora based company — which reports in US dollars—said its third-quarter profits jumped to US$241 million, or $2.06 per share in the period ended September. That compared with earnings of $51 million, or 45 cents a year ago when the global auto industry was going through a painful restructuring. Revenues rose 27 per cent to $5.9 billion from $4.7 billion in the year-earlier period. The auto parts maker also announced it would raise its dividend by 20 per cent increase to 18 cents US per share after a one time two-for-one stock split takes effect later this month.

ASIA VW aims for 10,000 China electric-car sales Volkswagen plans to build and sell 10,000 electric cars in China from 2014 to 2018 as rivals add more fuel-efficient vehicles in the world’s biggest automarket, according to a Bloomberg report. The German company will produce an electric model at local ventures with SAIC Motor and FAW Group as early as 2013 and add a battery-powered model specifically designed for the nation in 2018. While local demand for electric cars and hybrids trails other market, China is offering buyers of plug-in hybrids and pure electric cars subsidies of as much as 60,000 yuan ($9,000) to help cut pollution and reduce oil dependency. The German carmaker will also introduce the Touareg hybrid sport-utility vehicle locally this year and begin field tests of electric vehicles in China this year, it said.

GM, Ford report strong China sales in October GM is likely to sell more than two million vehicles in China this year after posting record sales for October, according to a Bloomberg report. GM and its ventures in China sold 199,641 vehicles last month, up nearly 20 percent from the year before. That took its sales for the fi rst 10 months of the year to 1,976,913 vehicles — a gain of 36 percent. Ford reported it sold 49,681 vehicles in October, up 33 percent. Ford’s China sales in January-October surged 39 percent to 468,754. Sales by SAIC-GM-Wuling, GM’s minivehicle joint venture, rose only 5.1 percent over a year earlier, to 93,935 units. Tax cuts and subsidies for energy-efficient vehicles helped spur sales of minivans and other small cars last year.

GAC to form JV with Mitsubishi Guangzhou Automobile Group said it intends to set up a JV with Mitsubishi based on Shanghai-listed GAC Changfeng. GAC Changfeng, which is 29 percent owned by GAC and 14.59 percent held by Mitsubishi, makes vehicles with Mitsubishi and other brand names, and provides automobile components. GAC signed an MOU with Mitsubishi to convert GAC Changfeng into a 50/50 joint venture and delist GAC Changfeng. The joint venture will be the base for their collaborative business in China. GAC, the larg-

est automaker in south China, said it also signed a MOU with Hunan government for strategic cooperation.

NSK, Toshiba team up in electric power steering NSK and Toshiba have formed a JV to develop electric power steering systems, as demand for such systems grows along with the increasing popularity of greener cars. NSK has taken a 51 percent stake in the 200 million yen ($2.48 million) joint venture, ADTech, which was established in September. NSK will handle overall design and production while Toshiba will help with the software side. The venture aims to launch a product in 2013. Toshiba reached a deal with Ford to supply drive motors for the US automaker’s hybrid vehicles, while Toshiba and Mitsubishi are jointly developing lithium ion batteries for electric vehicles. Toshiba aims to increase sales from its auto-related business to 700 billion yen in the year starting April 2015 from 200 billion yen expected for this fi nancial year.

Honda lifts planned capacity for new China JV plant Honda said its Chinese venture with Dongfeng Motor would have annual production capacity of 100,000 units when it starts operations in 2012, more than the initially planned 60,000 units, according to a report in the Associated Press. Dongfeng Honda Automobile, which held a ground-breaking ceremony for its second factory in the central Chinese city of Wuhan, will raise capacity to 120,000 units in 2013 and eventually double that to the designed capacity of 240,000 units. Honda is planning to produce hybrid cars in China in order to offer the fuel-sipping vehicles at a reasonable price. Honda currently exports the Civic hybrid to China from Japan. The car costs 269,800 yuan ($40,420) with a 25 percent import tax, and Honda sold just 63 units in the fi rst nine months of 2010. It also plans to export the Insight and CR-Z models to China in 2012. Honda’s car sales in China grew 22 percent to about 580,000 units in 2009. Honda said its combined capacity would rise to 890,000 cars a year in 2013, including expansions at its other joint venture, with Guangzhou Automobile Group and an export-only factory.

Auto Monitor

Product ............................................................ pg no. 3D coordinate measuring machine ............................17 Accelarated pedal sensor accessories ........................29 Acid purifier ...............................................................37 Adaptors .....................................................................51 ADEA - Automotive Dealership Excellence Awards .....42 Air chiller ....................................................................27 Air purifier ..................................................................43 Alternatives ................................................................7 Aluminium casting .....................................................5 Aluminium endmills...................................................22 Automatic painting system ........................................16 Automation ................................................................26 Automotive electrical components ............................39 Automotive wire harness ...........................................24 Batteries .....................................................................7 Brake linings ..............................................................9 Brake pads .................................................................7 Braking system ...........................................................5 Building automation ..................................................26 Burs ............................................................................22 CAD/CAM ....................................................................23 Capacitors discharge ignitors .....................................24 Car paints ...................................................................8 Car polish ...................................................................8 Carbide burrs .............................................................22 Carbide roughing endmills .........................................22 Carbide tools ..............................................................22 CED coating machines ................................................26 CED/KTL coatings........................................................34 Certification services for vehicles and vehicle parts ..55 Chemical etching........................................................41 Chrome.......................................................................37 Clamps........................................................................35 Clutch housing ...........................................................20 Clutch plates & cover assemblies ...............................7 CNC .............................................................................47 CNC cutting machines ................................................26 CNC HMCS ...................................................................47 CNC laser cutting machines........................................26 CNC lathes ..................................................................BC CNC machines ............................................................47 CNC oval turning centers ............................................47 CNC oxy fuel cutting machines...................................26 CNC plasma cutting machines ....................................26 CNC turn mill centers .................................................47 CNC turning center .....................................................47, BC CNC vertical machining center ...................................47 CNC/VMC machines ....................................................13, 32 Coating equipment ....................................................46 Coating machines .......................................................26 Coating machines .......................................................26 Coating plants ............................................................26 Coating systems ..........................................................26 Combination switches ................................................24 Combined drills & countersinks .................................22 Compact chiller ..........................................................27 Compaction & concreting equipment. .......................57 Compression springs ..................................................3 Compressor ................................................................18 Contour evaluation in single trace .............................30 Countersinks ..............................................................22,bic Cutting machines .......................................................26 Cutting tools ...............................................................19 Cylinder box (186 series) .............................................20 Decimal endmills .......................................................22 Dehumidified air dryer ..............................................27 Diamond tools............................................................BIC Die casting dies ..........................................................31 Diesel engines (10-1000hp) ........................................57 Diesel/kerosene engines ............................................57 Dip spin coating machines .........................................26 Dollies ........................................................................6 Door trims ..................................................................45 Drilling tools...............................................................BIC Drills ...........................................................................22,51 E-coatings solutions ...................................................34 EGR valve ....................................................................29 Electronic control unit ...............................................29 Electroplating chemicals ............................................37

PRODUCT INDEX Electroplating plants ..................................................37 Engine block for automobile......................................20 Engine valves..............................................................9 Environmental............................................................38 ETP .............................................................................37 Ex series .....................................................................47 Exhibition - Engineering Expo ....................................1,4,40 Exhibition - Hi Tech manufacturing show ..................36 Expandable mono block-reamers ..............................51 Extension springs .......................................................3 Factory automation....................................................26 Filters .........................................................................7 Fluidised bed coating machines ................................26 Foldable large container ............................................6 Foldable small crates .................................................6 Form & cylindercity testers ........................................17 Gasoline systems ........................................................7 Gear pumps ................................................................7 Glide coating machines ..............................................26 Granulator ..................................................................27 Grinder .......................................................................27 Gun drills ....................................................................BIC Health & safety (EHS) consulting ................................38 High performance drills .............................................22 High performance endmills .......................................22 High temperature nylon.............................................12 Hollow bars ................................................................25 Hopper dryer..............................................................27 Hopper loader ............................................................27 Horizontal CNC machines...........................................47 Horizontal machining center .....................................47 Horns..........................................................................7 Hot,cold & warm forged machined parts ..................39 IC engine valves..........................................................39 Imaging & vision systems ...........................................26 Industrial metrology ..................................................17 Jobber length drills ....................................................22 Kx series .....................................................................47 Kxg series ...................................................................47 Lighting ......................................................................7 Lightweight diesel engines ........................................57 Lightweight petrol......................................................57 Lubricants ..................................................................7 Machinery steel ..........................................................11 Marpreset, tool presetters .........................................30 Marsurf ld 120 roughness ..........................................30 Materials handling solutions ......................................6 Measurement .............................................................30 Metal cutting tools .....................................................49 Metﬁn compounds .....................................................54 Metric endmills ..........................................................22 Milling cutters ............................................................BIC Modular tooling system .............................................BIC Mould temperature controller ...................................27 Multi gauging systems ................................................17 Mx series ....................................................................47 N/c spotting drills .......................................................22 Nickel,copper,silver,gold recovery units ....................37 Nx series .....................................................................47 Optoelectronic systems ..............................................17 Paint circulation system .............................................16 Paint pumps ...............................................................16 Paint shop equipments ..............................................26 Paint shop machines ..................................................26 Pallets ........................................................................6 PCD & carbide reamers ..............................................51 Pistons & pistons rings ...............................................44 Plastic moulded components ....................................39 Polyamide 11&12 .......................................................12 Polymer conveyer belt ...............................................27 Powder coating system ..............................................16 Power sprayer ............................................................57 Power steering systems ..............................................9 Power tiller .................................................................57 Press tools ..................................................................31 Pre-treatment systems ...............................................26 Pumpsets and power reapers ....................................57 Quality steel ...............................................................11 Reamers .....................................................................BIC Relays .........................................................................7

16 - 30 November 2010

Resistor assembly .......................................................24 Robot system..............................................................27 Roundness ..................................................................17 SCADA & DCS implementaion ....................................26 Sealer dispensing system ...........................................16 Seat assemblies ..........................................................39 Seat belt systems ........................................................9 Security systems .........................................................43 Self adhesive tapes .....................................................54 Solid carbide drills .....................................................49,51 Solid carbide drills with IC .........................................49 Solid carbide mills......................................................49 Solid carbide reamers ................................................49 Solid carbide reamers with IC ....................................49 Solid carbide special drills .........................................49 Solid carbide special mills..........................................49 Solid carbide special reamers ....................................49 Solid mono block reamers .........................................51 Spade drills.................................................................22 Spark plug ..................................................................7 Special boring bars.....................................................51 Special fine boring tools.............................................51 Special line boring tools .............................................51 Special purpose machine ...........................................31 Special reaming tools .................................................51 Special theard milling tools .......................................51 Speciality chemicals ...................................................15 Spray guns ..................................................................16 Spray painting equipment .........................................8 Stack nest crates.........................................................6 Stackable crates .........................................................6 Standard & special pcd-tools .....................................51 Standard endmills ......................................................22 Standard fine boring tools .........................................51 Standard thread milling tools ....................................51 Starter motor..............................................................7 Steering wheel covers.................................................45 Straight flute drills......................................................22 Strip steel ...................................................................11 Stub length drills ........................................................22 Suspension .................................................................5 Sx series ......................................................................47 Taps ............................................................................BIC Taps (cold forming/nss) ..............................................51 Texturing ....................................................................41 Threading tools ..........................................................51 Tool bits .....................................................................11 Tool presetting ...........................................................30 Tool steel ....................................................................11 Torsion springs ...........................................................3 Total data management .............................................30 Transmission ..............................................................5 Transmission cylinder box..........................................20 Transmission housing.................................................20 Truck tyres..................................................................21 Turneykey solutions ...................................................51 Turning machine solutions.........................................33 Two wheeler tyres ......................................................21 Tyre changing accessories ..........................................54 Tyre repair tools .........................................................54 Tyre service tools ........................................................54 Tyres ...........................................................................21,48 Uabos tooling system .................................................51 Vaccum cleaners ........................................................43 Vaccum pump ............................................................29 Vehicle interiors .........................................................FIC Ventilators ..................................................................54 Vertical line series ......................................................47 Vertical machining center ..........................................53 VMC-linear series ........................................................47 Water purifier .............................................................43 Wheel alignment accessories .....................................54 Wheel balancing accessories ......................................54 Window gaskets..........................................................45 Wiper blades ..............................................................7 Wire forms ..................................................................3 Wiring harness ...........................................................45

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Auto Monitor

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Pg No....... Advertiser ..........................................................................Tel ..........................................E-mail ..............................................................Website 44 ............ Abilities India Pistons & Rings Ltd .....................................+91-120-4623761...................aip.del@aippistons.co.in ................................www.aippistons.com BC ............ ACE Designers Ltd ..............................................................+91-80-22186700 ..................acedesigners@acemicromatic.com .................www.acedesigners.co.in 42 ............ ADEA-Automotive Dealership Excellence Awards ..............+91-22-30034650...................prachi.mutha@infomedia18.in ....................... 12 ............ Arkema India.....................................................................+91-22-24387504 ...................mandar.amrute@arkema.com ........................www.rilsanht.com 54 ............ 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Ltd. .............................................+91-22-67962757 ..................menon@godrej.com ........................................www.godrejtoolings.com 57 ............ Greaves Cotton Limited .....................................................+91-22-24397575 ...................rrao@greavesmail.com ...................................www.greavescotton.com BIC........... Guhring India Private Limited ...........................................+91 -80-40322500 .................info@guhring.in .............................................www.guhring.in 36 ............ Hitech Manufaturing Show................................................+91-9820373804 ............................................................................................ FIC ........... IAC International Automotive India Pvt Ltd ......................+91-20-66538500 ........................................................................................... 38 ............ Indus Environmental Services Pvt Lt .................................+91-11-26271433 ...................envirotrends@indusenviro.com ......................www.envirotrends.net 25 ............ ISMT Limited .....................................................................+91-20-66024901 ..................sachin.joshi@ismt.co.in ...................................www.ismt.com 48 ............ JK Tyre & Industries Ltd. ....................................................+91-11-23311112 ....................anilgupta@jkmail.com ....................................www.jktyre.com 47 ............ Jyoti CNC Automation ........................................................+91-2827-287081...................info@jyoti.co.in ...............................................www.jyoti.co.in 34 ............ Kamal Envirotech ..............................................................+91-124-4367305...................enquiry@giaatech.com ...................................www.giaatech.com 51 ............ Komet Precision Tool India Pvt Ltd ...................................+91-80-280780000 ................info.in@kometgroup.com ............................... 15 ............ Lanxess India Pvt.Ltd. .......................................................+91-22-21729200 ............................................................................................www.lanxess.in 19 ............ Larsen & Tourbo Ltd..........................................................+91-22-67051093 ...................smh-inp@powai.ltindia.com ...........................www.larsentoubro.com 3 .............. M And M Auto Indus Ltd ....................................................+91-124-4763200 ...................corporate@mandmsprings.com ......................www.mandmsprings.com 46 ............ M+V Marketing & Sales Pvt. Ltd. .......................................+91-124-4121600 ...................info@wagner-group.in ....................................www.wagner-group.in 30 ............ Mahr Metrology India (P) Ltd. ............................................+91-44-42170531 ..................r.ganesan@mahr.com .....................................www.mahr.com 53 ............ Makino India Private Limited ............................................+91-80-28419500 ..................slim@makino.co.in ..........................................www.makino.com 33 ............ Meiban Engineering Technologies Pvt ..............................+91-80-26491229 ..................sales-turning@meibanengg.com ..................... 24 ............ Napino Auto & Electronics Ltd. .........................................+91-124-2290050...................info@napino.com ............................................www.napino.com 20 ............ Ningbo Junling Mould Technology Co., Ltd .......................+86-574-8610-3666 ...............scb@junlingmould.com ..................................www.junlingmould.com 35 ............ Oetiker India Pvt Ltd .........................................................+91-2192-250107 ...................akeswani@oetiker.com ...................................www.oetiker.com 29 ............ Padmini VNA Mechatronics Pvt. Ltd..................................+91-124-3207398 ...................sales@padminiengg.com ................................www.padminivna.com 16 ............ Patvin Engineering (P) Ltd .................................................+91-22-27780310 ...................patvin@patvin.co.in ........................................www.patvin.co.in 9 .............. Rane Holdings Limited ......................................................+91-44-28112472...................s.vinoth@rane.co.in.........................................www.rane.co.in 8 .............. Rohan Standox Autolack ...................................................+91-22-65803331...................sales@spraytec.net..........................................www.spraytec.net 37 ............ Ronuk Group .....................................................................+91-22-24936261 ...................ronukgroup@ronukgroup.com .......................www.ronuk-ronuplate.com 54 ............ Sarveshwari Technologies Ltd ...........................................+91-11-27023750 ...................info@sarveshwari.com ....................................www.@sarveshwari.com 6 .............. Schoeller Arca Time Solutions Ltd .....................................+91-22-42119500 ...................info@satmhs.com............................................www.satmhs.com 45 ............ Shri Ram Polytech .............................................................+91-124-4632100...................info@shrirampolytech.com .............................www.shrirampolytech.com 23 ............ Siemens Product Lifecycle Managemen ............................+91-124-4092244...................sundaram.mallik@ugs.com .............................www.siemens.com/plm 54 ............ Sreelakshmi Traders ..........................................................+91-44-24343343...................sreelakshmitraders@gmail.com ......................www.sreelakshmitraders.com 39 ............ Varroc Engineering Pvt Ltd................................................+91-240-2556227...................varroc.info@varrocgroup.com ........................www.varrocgroup.com 55 ............ VCA India ...........................................................................+91-11-46518545 ...................admin@vca-india.com ....................................www.vca.gov.uk 28 ............ Web 18 Software Services Ltd. ...................................................................................................................................................................http://ibnlive.in.com/siemensecovatives 13 ............ Yamazaki Mazak India Pvt Ltd ..........................................+91-20-27351417 ...................sudhir_patankar@mazakindia.com ................www.mazak.com Q Our consistent advertisers

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Auto Monitor

16 - 30 November 2010

N AMERICAN ASSEMBLY

AUTOFACTS Global Automotive Outlook, 2009 Q1 Release PricewaterhouseCoopers LLP

North America Assby Tracking 8-2010 (Tracking by Brand & Nameplate) September 2010

Last 3 Months

Ownership Org/ Brand & Nameplate

Volume

YOY % Chg

Assembly Share %

AM General Corporation (USA) Hummer H2 AutoAlliance International (USA) Ford Mustang Mazda Mazda6 BMW (Germany) BMW X3 BMW X5 BMW X6 CAMI Automotive (Canada) Chevrolet Equinox GMC Terrain Pontiac Torrent Suzuki XL-7 Chrysler Corp LLC (USA) Chrysler 300 Chrysler PT Cruiser Chrysler Sebring Chrysler Town & Country Dodge Avenger Dodge Caliber Dodge Caravan Dodge Challenger Dodge Charger Dodge Dakota Dodge Journey Dodge Nitro Dodge Ram Pickup Dodge Viper Jeep Commander Jeep Compass Jeep Grand Cherokee Jeep Liberty Jeep Patriot Jeep Wrangler Jeep Wrangler Unlimited Mitsubishi Raider Volkswagen Routan Chrysler Group LLC (USA) Chrysler 300 Chrysler PT Cruiser Chrysler Sebring Chrysler Town & Country Dodge Avenger Dodge Caliber Dodge Caravan Dodge Challenger Dodge Charger Dodge Dakota Dodge Journey Dodge Nitro Dodge Ram Pickup Dodge Viper Jeep Commander Jeep Compass Jeep Grand Cherokee Jeep Liberty Jeep Patriot Jeep Wrangler Jeep Wrangler Unlimited Ram Pickup Volkswagen Routan Daimler AG (Germany) Dodge Sprinter Freightliner Sprinter Mercedes-Benz GL-Class Mercedes-Benz M-Class Mercedes-Benz R-Class Ford Motor Company (USA) Ford Crown Victoria Ford Econoline Ford Edge Ford Escape Ford Expedition Ford Explorer Ford Explorer Sport Trac Ford Fiesta Ford Flex Ford Focus Ford F-Series Ford Fusion Ford Ranger Ford Taurus Ford Taurus X Lincoln Mark LT Lincoln MKS Lincoln MKT Lincoln MKX Lincoln MKZ Lincoln Navigator Lincoln Town Car Mazda B-Series Mazda Tribute Mercury Grand Marquis Mercury Mariner Mercury Milan Mercury Mountaineer Mercury Sable Fuji Heavy Industries (Japan) Subaru Legacy Subaru Tribeca Toyota Camry General Motors Company (USA) Buick Enclave Buick LaCrosse Buick Lucerne Cadillac CTS Coupe

11,119 7,104 4,015 12,101 8,281 3,820 157,288 1,985 4,500 12,511 5,855 4,959 15,964 4,478 10,690 1,492 13,217 2,940 5,503 17,708 5,932 7,207 5,117 6,993 30,237 12,533 1,445 2,520 7,056 1,512 226,506 3,762 9,074 15,130 25,036 5,532 8,340 1,137 11,470 3,835 21,757 65,502 23,258 6,548 9,277 114 1,315 232 2,129 2,921 1,187 1,075 547 1,765 3,033 1,784 746 22,307 13,869 489 7,949 240,596 6,125 5,482 3,445 915

-100.0% -100.0% -24.1% -17.0% -34.1% 7.2% 11.9% -1.8% -100.0% -100.0% -100.0% 25.7% -59.2% 25.2% 4.2% -19.4% 136.9% 14.5% 5.2% 36.4% -25.5% 3.0% 12.1% -100.0% -100.0% -100.0% 105.1% 212.1% -13.7% 21.6% 13.7% 6.1% -100.0% 16.1% -100.0% 196.1% 22.7% 17.5% 36.7% 17.2% -24.2% 48.2% 97.9% 12.4% 22.5% 26.1% 26.1% -8.7% -17.9% 16.2% 13.4% 33.0% 21.4% 34.1% -31.9% -93.3% 48.4% 61.0% 1.9% 128.7% -100.0% -31.9% -47.2% 2.1% 1.5% 56.7% 20.9% 30.3% 136.2% 4.6% 9.1% 2.3% 10.8% -5.9% -

1.0% 0.7% 0.4% 1.1% 0.8% 0.4% 14.6% 0.2% 0.4% 1.2% 0.5% 0.5% 1.5% 0.4% 1.0% 0.1% 1.2% 0.3% 0.5% 1.6% 0.6% 0.7% 0.5% 0.6% 2.8% 1.2% 0.1% 0.2% 0.7% 0.1% 21.0% 0.3% 0.8% 1.4% 2.3% 0.5% 0.8% 0.1% 1.1% 0.4% 2.0% 6.1% 2.2% 0.6% 0.9% 0.0% 0.1% 0.0% 0.2% 0.3% 0.1% 0.1% 0.1% 0.2% 0.3% 0.2% 0.1% 2.1% 1.3% 0.0% 0.7% 22.4% 0.6% 0.5% 0.3% 0.1%

YOY Share Chg (-0.0) (-0.0) (-0.5) (-0.2) (-0.3) (-0.1) (-0.0) (-0.1) (-1.3) (-0.9) (-0.4) 1.5 (-0.3) 0 (-0.1) (-0.2) 0.2 0 (-0.0) 0.2 (-0.1) (-0.1) (-0.0) (-1.8) (-0.0) (-0.2) 0.2 1.1 (-0.2) 0 0 (-0.0) 2.8 (-0.0) 0 (-0.1) 0.1 0 0 0 0.8 (-0.2) 0.2 0.6 (-0.0) 0 0.1 0 1.1 (-0.1) (-0.8) 0.2 0 0.1 0.1 0 (-0.1) (-0.3) 0 0.1 (-0.0) 0.1 (-0.0) (-0.0) (-0.2) (-0.0) (-0.0) 0 0.1 0.2 0 (-0.1) (-0.7) (-0.1) (-0.0) (-0.1) 0.1

Volume 24,814 15,183 9,631 36,586 24,962 11,624 400,392 7,009 628 12,289 33,229 15,354 12,584 40,908 11,212 24,705 4,395 39,013 7,416 10,491 45,205 14,908 18,042 14,003 19,285 69,716 32,789 3,749 6,600 18,480 3,960 567,802 9,209 26,595 31,962 63,864 13,719 15,514 2,115 29,350 8,797 57,671 163,966 63,573 15,076 22,750 282 3,696 764 5,549 5,650 2,848 2,762 1,618 6,433 7,757 4,584 1,698 58,548 36,879 940 20,729 706,551 18,633 18,189 10,908 2,866

YOY % Chg -100.0% -100.0% -27.5% -24.7% -31.5% 17.8% 22.7% 8.5% -100.0% -100.0% -100.0% 42.1% -37.8% -80.7% 119.6% 39.9% 42.4% 85.7% 2.7% 21.3% 70.7% 1.5% 42.2% 59.9% -100.0% -100.0% -100.0% 84.1% 263.7% 28.8% 59.3% 14.2% 10.7% -100.0% 37.1% -100.0% 198.7% 49.3% 43.0% 66.4% 21.3% 30.4% 46.4% 42.5% 11.8% 21.9% 4.3% 4.3% -10.2% 7.0% 16.5% 15.1% -7.5% 44.2% -7.2% -18.9% -78.0% 19.3% 12.1% 3.6% 94.9% -100.0% -21.1% 8.8% 20.6% -13.1% 40.6% 29.7% 46.3% 128.7% 6.2% 43.6% 33.1% 104.6% 90.3% -

Year to Date Assembly Share % 0.8% 0.5% 0.3% 1.2% 0.8% 0.4% 13.5% 0.2% 0.0% 0.4% 1.1% 0.5% 0.4% 1.4% 0.4% 0.8% 0.1% 1.3% 0.2% 0.4% 1.5% 0.5% 0.6% 0.5% 0.6% 2.3% 1.1% 0.1% 0.2% 0.6% 0.1% 19.1% 0.3% 0.9% 1.1% 2.1% 0.5% 0.5% 0.1% 1.0% 0.3% 1.9% 5.5% 2.1% 0.5% 0.8% 0.0% 0.1% 0.0% 0.2% 0.2% 0.1% 0.1% 0.1% 0.2% 0.3% 0.2% 0.1% 2.0% 1.2% 0.0% 0.7% 23.8% 0.6% 0.6% 0.4% 0.1%

YOY Share Chg (-0.0) (-0.0) (-0.6) (-0.4) (-0.3) (-0.1) (-0.0) (-0.1) (-1.3) (-1.1) (-0.3) 1.4 (-0.2) (-0.1) 0.2 0.1 0.1 0.1 (-0.3) (-0.0) 0.2 (-0.0) 0.1 0.1 (-2.0) (-0.0) (-0.1) 0.1 1 0 0.1 (-0.1) (-0.1) 2.3 (-0.0) 0.1 (-0.1) 0.1 0 0.1 0 (-0.9) 0 0.1 0.1 (-0.3) (-0.0) (-0.1) (-0.0) 1 (-0.1) (-0.4) (-0.5) (-0.2) (-0.2) 0.1 (-0.0) (-0.1) (-0.1) (-0.0) (-0.0) (-0.0) 0 (-0.0) (-0.0) (-0.0) (-0.0) (-0.1) 0 0 0.2 0 (-0.1) 2.8 0 0.2 0.1 0.1

Volume 1,287 1,287 94,377 63,984 30,393 106,255 72,722 33,533 1,207,728 30,981 11,083 37,899 103,803 47,137 55,528 125,578 33,543 79,733 14,186 98,542 20,189 71,646 459 5,582 31,876 76,377 49,105 45,958 43,652 63,763 150,421 10,687 105,748 12,441 21,363 59,916 12,028 1,741,622 36,119 94,171 111,886 208,581 36,789 55,207 7,527 44,887 33,438 155,046 477,964 199,642 56,927 69,282 736 12,569 4,731 18,684 17,294 7,648 9,909 2,395 7,076 26,766 22,763 19,021 4,564 176,000 105,984 3,876 66,140 2,103,654 57,732 57,897 22,888 3,682

YOY % Chg 228.3% 228.3% 31.9% 20.1% 66.0% 21.0% 30.4% 4.6% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% 320.9% 167.1% 222.0% 566.9% 324.4% 323.0% 719.6% 209.8% 253.6% 437.1% 220.7% 249.8% 335.4% 52.5% 155.0% 92.7% 459.2% 514.5% 324.1% 305.7% 247.9% 256.8% 4486.7% 34.8% -100.0% 201.0% 41.5% 38.3% 50.0% 41.2% 16.7% 42.4% 76.4% 39.8% 65.4% 32.5% 29.4% 52.2% 35.7% 21.0% 60.2% 23.8% 127.3% -100.0% 125.8% 18.7% 36.1% 15.9% 32.4% 47.4% 28.3% 77.7% 45.3% 47.8% 28.7% 29.3% 39.6% -100.0% 53.7% 114.7% 52.4% 5.7% 74.5% 86.5% 500.0% 43.4% -

Assembly Share % 0.0% 0.0% 1.1% 0.7% 0.3% 1.2% 0.8% 0.4% 13.5% 0.3% 0.1% 0.4% 1.2% 0.5% 0.6% 1.4% 0.4% 0.9% 0.2% 1.1% 0.2% 0.8% 0.0% 0.1% 0.4% 0.9% 0.5% 0.5% 0.5% 0.7% 1.7% 0.1% 1.2% 0.1% 0.2% 0.7% 0.1% 19.4% 0.4% 1.1% 1.2% 2.3% 0.4% 0.6% 0.1% 0.5% 0.4% 1.7% 5.3% 2.2% 0.6% 0.8% 0.0% 0.1% 0.1% 0.2% 0.2% 0.1% 0.1% 0.0% 0.1% 0.3% 0.3% 0.2% 0.1% 2.0% 1.2% 0.0% 0.7% 23.5% 0.6% 0.6% 0.3% 0.0%

YOY Share Chg 0 0 (-0.2) (-0.2) 0 (-0.3) (-0.1) (-0.2) (-0.9) (-0.7) (-0.1) (-0.1) (-0.0) (-5.5) (-0.2) (-0.1) (-0.1) (-0.4) (-0.1) (-0.2) (-0.6) (-0.2) (-0.3) (-0.1) (-0.3) (-0.1) (-1.4) (-0.0) (-0.0) (-0.1) (-0.4) (-0.3) (-0.2) (-0.2) (-0.2) (-0.0) (-0.0) 8.5 0.1 0.1 0.3 0.7 0.3 0.5 0.7 0.2 0.6 0.1 0.6 0.1 (-0.0) 0 0 0.3 0.6 0.3 0.3 0.3 0.4 1.7 0.1 (-0.2) (-0.1) 0.1 (-0.0) (-0.1) (-0.0) (-1.8) (-0.1) (-0.1) 0.2 (-0.2) 0 (-0.1) (-0.0) 0.5 (-0.0) (-0.2) (-1.4) 0.1 (-0.2) 0.2 (-0.0) 0 (-0.0) (-0.0) (-0.1) (-0.0) (-0.0) (-0.0) 0 (-0.0) (-0.0) (-0.0) (-0.0) (-0.0) (-0.1) (-0.0) 0.3 (-0.0) (-0.3) 2.8 0.1 0.5 (-0.0) 0

16 - 30 November 2010

N AMERICAN ASSEMBLY September 2010

Ownership Org/ Brand & Nameplate Cadillac CTS Sedan Cadillac CTS Sport Wagon Cadillac DTS Cadillac Escalade Cadillac Escalade ESV Cadillac Escalade EXT Cadillac SRX Cadillac STS Cadillac XLR Chevrolet Avalanche Chevrolet Aveo Chevrolet C2 Chevrolet Camaro Chevrolet Captiva Chevrolet Cobalt Chevrolet Colorado Chevrolet Corvette Chevrolet Cruze Chevrolet Equinox Chevrolet Express Chevrolet HHR Chevrolet Impala Chevrolet Malibu Chevrolet Silverado Chevrolet Suburban Chevrolet Tahoe Chevrolet Traverse GMC Acadia GMC Canyon GMC Savana GMC Sierra Pickups GMC Terrain GMC Yukon GMC Yukon XL Hummer H3 Hummer H3T Opel-Vauxhall GT Pontiac G5 Pontiac G6 Pontiac Solstice Pontiac Wave Saturn Aura Saturn Outlook Saturn SKY Saturn VUE Honda Motor Company (Japan) Acura CSX Acura MDX Acura RDX Acura TL Acura ZDX Honda Accord Honda Civic Honda Crosstour Honda CR-V Honda Element Honda Odyssey Honda Pilot Honda Ridgeline Hyundai Motor Company (S Korea) Hyundai Santa Fe Hyundai Sonata/i40 Kia Sorento Mitsubishi Motors Corp (Japan) Mitsubishi Eclipse Mitsubishi Endeavor Mitsubishi Galant Nissan Motor (Japan) Infiniti QX series Nissan Altima Nissan Armada Nissan Frontier Nissan Maxima Nissan Pathfinder Nissan Pickup Nissan Platina Nissan Quest Nissan Sentra Nissan Tiida Nissan Titan Nissan Tsuru Nissan Versa Nissan Xterra Renault Clio Suzuki Equator NUMMI (USA) Pontiac Vibe Toyota Corolla Toyota Tacoma Tesla Motors (USA) Tesla Roadster Toyota Motor Corporation (Japan) Lexus RX Series Toyota Avalon Toyota Camry Toyota Corolla Toyota Highlander Toyota Matrix Toyota RAV4 Toyota Sequoia Toyota Sienna Toyota Tacoma Toyota Tundra Toyota Venza Volkswagen (Germany) Volkswagen Bora Volkswagen Golf/Jetta Variant Volkswagen Jetta Volkswagen New Beetle Total Light Vehicle

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Volume 4,100 365 1,846 2,365 1,688 235 7,065 719 2,771 4,409 3,416 3,619 2,194 3,275 1,418 7,329 16,633 5,872 7,101 13,237 21,143 39,967 4,941 8,621 13,277 7,614 1,149 2,253 21,681 7,453 3,442 3,431 1 110,058 6,306 1,620 3,316 60 25,225 27,036 1,801 23,276 1,256 8,122 10,155 1,885 37,740 164 25,048 12,528 3,428 385 811 2,232 91,509 25,420 2,778 4,707 6,440 3,274 2,832 13,974 6,213 2,673 5,957 14,498 2,613 130 65 65 119,463 7,136 2,978 22,041 16,322 8,884 2,988 15,743 2,903 13,074 12,310 9,971 5,113 31,542 742 8,957 21,421 422 1,076,255

YOY % Chg -14.3% -40.6% -21.0% 151.9% 259.1% 79.4% 95.6% 132.7% 63.1% 31.8% -10.7% -61.7% -25.4% -100.0% -27.2% -8.3% 20.6% 39.5% -9.2% 1.7% -0.7% -10.3% -10.0% -9.9% 5.5% -7.5% 103.3% 43.0% -13.1% 70.0% -100.0% -100.0% -100.0% -100.0% -100.0% 0.0% 5.2% -100.0% 29.9% 22.4% -6.8% -13.7% -8.9% 5903.3% 15.4% 108.6% 7.4% 59.8% 49.6% 82.0% -98.6% 174.8% 32.3% 150.0% 69.0% 14.1% 33.7% -100.0% 45.5% 55.8% 59.9% 9.4% 1.8% 73.5% 32.8% 91.8% 20.1% 9.0% 33.6% 15.9% -100.0% 30.0% -100.0% -100.0% -100.0% 12.1% 12.1% 27.4% -0.5% 2.3% -14.9% 16.1% 6529.9% -13.2% 102.1% 8.3% 43.9% 192.1% 11.3% -31.2% 14.1% -53.9% 27.2% 28.2% -81.6% 12.7%

Last 3 Months Assembly Share % 0.4% 0.0% 0.2% 0.2% 0.2% 0.0% 0.7% 0.1% 0.3% 0.4% 0.3% 0.3% 0.2% 0.3% 0.1% 0.7% 1.5% 0.5% 0.7% 1.2% 2.0% 3.7% 0.5% 0.8% 1.2% 0.7% 0.1% 0.2% 2.0% 0.7% 0.3% 0.3% 100.0% 10.2% 0.6% 0.2% 0.3% 0.0% 2.3% 2.5% 0.2% 2.2% 0.1% 0.8% 0.9% 0.2% 3.5% 0.0% 2.3% 1.2% 0.3% 0.0% 0.1% 0.2% 8.5% 2.4% 0.3% 0.4% 0.6% 0.3% 0.3% 1.3% 0.6% 0.2% 0.6% 1.3% 0.2% 0.0% 0.0% 0.0% 11.1% 0.7% 0.3% 2.0% 1.5% 0.8% 0.3% 1.5% 0.3% 1.2% 1.1% 0.9% 0.5% 2.9% 0.1% 0.8% 2.0% 0.0% 100.0%

YOY Share Chg (-0.1) (-0.0) (-0.1) 0.1 0.1 0 0.3 0 0.1 0.1 (-0.1) (-0.7) (-0.1) (-1.0) (-0.2) (-0.0) 0.7 1.5 0 0.1 (-0.3) (-0.2) (-0.5) (-0.1) (-0.2) (-0.3) (-0.0) (-0.0) 0.1 0.4 0.7 (-0.1) 0.1 (-0.0) (-0.0) (-0.2) (-0.7) (-0.1) 0 (-0.7) (-0.0) 0.1 0 (-0.1) 0 (-0.7) (-0.6) 0.2 0 0.1 (-0.0) 0.3 0 1.3 (-1.2) 1.4 1.2 0 0 0 0 1.3 (-0.1) 0.5 0.1 0.1 (-0.0) (-0.0) 0.1 0.2 0.2 0 (-0.0) 0.2 0 (-0.0) 0 (-3.2) (-2.1) (-1.1) (-0.0) (-0.0) 1.3 (-0.1) (-0.0) (-0.7) 0 0.8 (-0.1) 0.6 (-0.0) 0.3 0.7 (-0.0) (-0.3) 0 (-0.1) 0.1 0.2 (-0.2) -

Volume

YOY % Chg

12,849 1,146 5,909 6,017 4,275 682 20,115 1,443 9,022 14,477 10,976 18,845 7,329 7,144 4,067 8,762 42,095 18,910 21,889 37,313 66,932 122,183 12,995 25,667 42,600 23,279 2,621 5,899 58,921 18,854 13,661 9,078 2,886 327,083 120 18,304 5,085 10,361 210 74,225 78,880 6,092 65,435 3,300 29,087 31,005 4,979 110,727 9,890 65,740 35,097 9,214 1,913 1,914 5,387 253,877 66,792 6,303 13,796 17,932 7,461 7,982 36,706 18,846 8,571 17,894 43,977 7,087 530 198 198 327,487 19,622 10,156 67,288 47,774 23,043 7,970 42,246 7,028 34,704 31,193 22,107 14,356 115,983 2,071 29,668 72,099 12,145 2,972,051

58.6% 44.9% 52.6% 125.5% 207.1% 86.3% 159.5% 145.0% 112.1% 228.1% 25.6% -34.3% 30.3% -100.0% 28.5% 60.4% 116.4% 97.8% 1.0% 20.1% 26.9% 14.2% 40.2% 49.0% 37.2% 73.7% 170.8% 30.9% 111.3% 144.6% -100.0% -100.0% -100.0% -100.0% -100.0% -48.4% 19.9% -0.8% 97.2% 51.5% 161.6% -11.3% -1.0% 3961.3% 28.1% 12.2% 48.8% 103.0% 33.8% 88.5% -67.7% 133.5% 43.8% 404.7% 0.6% 30.6% 32.6% -100.0% 43.0% 43.3% 35.1% 5.1% 7.0% 82.7% 11.2% 128.9% 30.9% 13.4% 59.5% 14.8% -100.0% -55.8% -100.0% -100.0% -100.0% -100.0% 12.5% 12.5% 30.6% 8.7% 42.5% -6.7% 34.7% 17096.3% -21.7% 100.4% 49.6% 41.2% 171.9% -11.5% -31.1% 55.7% -63.0% 42.8% 75.0% 75.5% 26.9%

Year to Date Assembly Share % 0.4% 0.0% 0.2% 0.2% 0.1% 0.0% 0.7% 0.0% 0.3% 0.5% 0.4% 0.6% 0.2% 0.2% 0.1% 0.3% 1.4% 0.6% 0.7% 1.3% 2.3% 4.1% 0.4% 0.9% 1.4% 0.8% 0.1% 0.2% 2.0% 0.6% 0.5% 0.3% 0.0% 11.0% 0.0% 0.6% 0.2% 0.3% 0.0% 2.5% 2.7% 0.2% 2.2% 0.1% 1.0% 1.0% 0.2% 3.7% 0.3% 2.2% 1.2% 0.3% 0.1% 0.1% 0.2% 8.5% 2.2% 0.2% 0.5% 0.6% 0.3% 0.3% 1.2% 0.6% 0.3% 0.6% 1.5% 0.2% 0.0% 0.0% 0.0% 11.0% 0.7% 0.3% 2.3% 1.6% 0.8% 0.3% 1.4% 0.2% 1.2% 1.0% 0.7% 0.5% 3.9% 0.1% 1.0% 2.4% 0.4% 100.0%

YOY Share Chg 0.1 0 0 0.1 0.1 0 0.3 0 0.1 0.3 (-0.0) (-0.6) 0 (-0.7) 0 0 0.3 1.4 0.3 0.3 (-0.3) (-0.1) 0 (-0.0) 0.1 0.2 0.1 0 0.1 0.1 0.6 0.2 0.1 (-0.0) (-0.0) (-0.1) (-0.6) (-0.0) (-0.1) (-0.6) (-0.0) 0.2 0 0.2 0 (-1.1) (-0.7) 0.2 0 (-0.0) 0.1 0.4 0 1.2 (-1.0) 1 1.2 0 0 (-0.0) 0 0.4 (-0.1) 0.3 0 0 (-0.1) (-0.0) 0.1 (-0.2) 0.3 0 (-0.1) 0.3 (-0.0) (-0.0) (-0.0) (-3.4) (-0.3) (-2.1) (-1.0) (-0.0) (-0.0) 0.3 (-0.1) 0 (-0.8) 0.1 0.8 (-0.2) 0.5 0 0.1 0.6 (-0.3) (-0.4) 0.7 (-0.2) 0.1 0.7 0.1 -

Volume

YOY % Chg

Assembly Share %

YOY Share Chg

39,594 2,558 16,219 19,185 9,817 2,108 56,553 3,813 21,769 42,181 41,495 75,580 21,843 91,796 26,155 13,263 8,762 124,411 51,781 56,673 136,203 180,771 341,666 43,435 78,625 91,375 59,989 9,633 16,995 154,865 51,722 37,962 25,761 1,183 321 2,507 -

85.1% 223.4% 101.7% 126.6% 173.5% 82.5% 629.1% 60.1% -100.0% 71.7% 111.6% 133.2% 44.5% 61.6% 109.3% 52.7% 126.3% 38.6% 81.8% 42.0% 59.4% 39.1% 52.9% 84.2% 35.8% 108.8% 88.7% 66.1% 47.5% 84.7% 120.2% -52.7% -78.3% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -48.4% -100.0%

0.4% 0.0% 0.2% 0.2% 0.1% 0.0% 0.6% 0.0% 0.2% 0.5% 0.5% 0.8% 0.2% 1.0% 0.3% 0.1% 0.1% 1.4% 0.6% 0.6% 1.5% 2.0% 3.8% 0.5% 0.9% 1.0% 0.7% 0.1% 0.2% 1.7% 0.6% 0.4% 0.3% 0.0% 0.0% 0.0% -

0.1 0 0 0.1 0 0 0.5 0 (-0.0) 0 0.1 0.2 (-0.1) 0 0.3 (-0.0) 0 0.1 1.4 (-0.1) 0.1 (-0.1) 0.1 (-0.4) (-0.0) 0.1 (-0.1) 0.2 0 0 (-0.1) 0.6 0.1 0.1 (-0.0) (-0.0) (-0.0) (-0.1) (-0.7) (-0.0) (-0.0) (-0.1) (-0.1) (-0.0)

979,929 1,320 50,187 15,211 27,768 4,520 224,353 234,241 29,239 186,959 11,996 86,988 90,088 17,059 324,841 62,276 167,904 94,661 22,315 5,430 4,526 12,359 740,727 3,136 209,340 18,309 38,999 55,077 20,771 20,968 102,535 49,427 22,995 54,705 123,467 19,758 1,240 90,813 63,318 27,495 588 588 955,962 63,021 32,049 213,997 141,035 61,364 29,735 107,882 18,115 97,894 58,719 81,418 50,733 308,684 11,819 76,172 180,606 40,087 8,960,530

34.2% 10.0% 131.9% 160.1% 73.6% 8.0% 4.5% 19392.7% 40.7% 18.3% 50.9% 123.5% 38.4% 126.2% -1.3% 108.5% 94.3% 128.4% 92.1% 83.0% 52.8% -33.1% 54.5% 175.7% 90.0% 57.8% 34.6% 118.5% -100.0% -100.0% 9.7% 173.5% 126.1% 9.8% 104.1% 41.9% -100.0% -51.2% -47.6% -100.0% -41.2% -26.0% 13.5% 13.5% 59.2% 42.6% 65.6% 37.7% 55.1% 45694.0% 3.5% 91.5% 44.6% 100.4% 95.2% 36.5% -6.7% 39.5% -13.8% -5.1% 72.7% 76.9% 53.9%

10.9% 0.0% 0.6% 0.2% 0.3% 0.1% 2.5% 2.6% 0.3% 2.1% 0.1% 1.0% 1.0% 0.2% 3.6% 0.7% 1.9% 1.1% 0.2% 0.1% 0.1% 0.1% 8.3% 0.0% 2.3% 0.2% 0.4% 0.6% 0.2% 0.2% 1.1% 0.6% 0.3% 0.6% 1.4% 0.2% 0.0% 1.0% 0.7% 0.3% 0.0% 0.0% 10.7% 0.7% 0.4% 2.4% 1.6% 0.7% 0.3% 1.2% 0.2% 1.1% 0.7% 0.9% 0.6% 3.4% 0.1% 0.9% 2.0% 0.4% 100.0%

(-1.6) (-0.0) 0.2 0.1 0 0.1 (-1.1) (-1.2) 0.3 (-0.2) (-0.0) (-0.0) 0.3 (-0.0) 1.2 (-0.4) 0.5 1.1 0.1 0 0 0 (-0.1) (-0.0) 0 0.1 0.1 0 (-0.0) 0.1 (-0.0) (-0.1) (-0.5) 0.2 0.1 (-0.2) 0.3 (-0.0) (-0.0) (-0.0) (-2.0) (-0.5) (-1.1) (-0.3) (-0.0) (-0.0) 0.4 (-0.1) 0 (-0.3) 0 0.7 (-0.2) 0.2 (-0.0) 0.3 0.1 (-0.1) (-0.4) (-0.4) (-0.1) (-0.5) 0.2 0.1 -

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THE OTHER SIDE

Getting Personal With Rohit Saboo, Chief Executive Ofﬁcer, National Engineering Industries (NEI) If not in the bearing industry, where would you be? Garment industry. I started by manufacturing garments for exports. It was my fi rst entrepreneurial stint What car do you drive? What do you dream to drive? I drive a Mitsubishi Cedia and I dream of driving a Ferrari some day Your most recent indulgence… I’m building a new house. That would be probably the biggest indulgence of my life What are you currently reading? Out of the Crisis by W Edwards Deming. The book gives you 14 points which companies should undertake to get out of crisis. It relates well with a manufacturing organisation like ours, so, I’m liking it What is Mr Saboo doing when not talking bearings? I spend time with my son and daughter, who are 16 and 10 years old respectively, or watching TV Outdoor activity you would miss office for... I used to play squash and cricket, but I can no longer play because of some back injury. Still when I get an adrenaline rush I play squash Where did you go for your last holiday? Thailand

16 - 30 November 2010

In Person An engineering graduate from the Birla Institute of Technology, Ranchi and an MBA from the Rochester Institute of Technology, Rochester, NY, Rohit Saboo is the President and CEO of National Engineering Industries (NEI), Jaipur – a CK Birla group company. In 2005, Saboo had also participated in the Columbia Senior Executive Program at the Columbia University, NY. Saboo took charge of the second largest bearing manufacturing company in India, with a market share of approximately 28 percent, on 1 July 2008, when the slowdown had just hit the industry and sales turnover and profits were on a sliding turn. He is credited to have turned around the company with his vision and leadership, leading to a growth in turnover of approximately 20 percent in the very fi rst year (FY10) of his taking the leadership role at NEI. NEI, today, has the biggest manufacturing range and customer base. Before coming to NEI Jaipur, Saboo served as the Executive Assistant to Chairman, CK Birla with primary responsibility of co-ordinating between the Chairman’s office and various group companies and their key executives.

You get angry when…. People don’t take responsibility for their action, when the speed of execution is too slow and take their work lightly What is the one thing you would like to change about yourself? I wish I was an extrovert. Though I like meeting people (I do meet lots of them) I’m somewhat an introvert Best thing to have happened to you? My wife…

An experience I won’t forget…

Illustration: Sachin Pandit

The most exciting experience of my life was when I fi rst saw and held my newborn daughter. That is one sight and feeling I’ll live with for my entire life.

Regn. No. MH/MR/WEST/20/2009-2011. RNI No. MAHENG/2000/11414 WPP Licence No: MR/Tech/WPP-269/WEST/09-11 Licenced to post without pre-payment at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001. Date Of Mailing:16th & 17th Fortnightly Issue