Auto Monitor - 16-30 November 2011 by Infomedia18

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

Auto Monitor Vol. 11 No. 21

“RENAULT COMMITTED TO DELIVERING QUALITY PRODUCTS” Marc Nassif, MD, Renault India

Pg 08

NEWS IN BRIEF Tata Sumo Gold launched at `5.23 lakh, four variants with two engine options Our Bureau Mumbai

ata Motors recent ly launched new Tata Sumo Gold in four variants—GX, EX, LX & CX, with a warranty of three years or 100,000 km at `5.23 lakh onwards (ex-showroom, Pune). The utility vehicle is powered by turbo charged 2956 cc BS IV engine delivering a mileage of 14.7 kmpl.

Emission Ready The BS III version is powered by di-turbo engine delivering around 14.3 kmpl in standard conditions. Launching the Tata Sumo Gold, Vice President, Commercial, PCBU, Tata Motors, R Ramakrishnan said, “The Tata Sumo Gold is a result of extensive consumer studies and ﬁeld tests. The product has been designed to fulfil various requirements, long-awaited by the new generation customer.”

Domestic Sales Sector

Sep-10

Change

215,085

218,170

1.43%

59,836

70,634

18.05%

48,814

49,255

0.90%

992,383

1,233,283

24.27%

TOTAL

1,316,118

1,571,342

19.39%

Exports Sector

Sep-10

Sep-11

34,895

39,646

13.62%

5,880

9,527

62.02%

21,540

31,581

46.62%

121,017

175,217

44.79%

TOTAL

183,332

255,971

39.62%

* Source: SIAM/ ** all sub segments considered

Change

64 Pages

TWO-WHEELER SPECIAL Pg 16-25

` 50

AUTONOMICS A FINE WAY TO CUT RISING ORE COSTS Pg 14

Shell to take learning from F1 for commercial usage Shambhavi Anand Greater Noida

ts all about speed and racing against time, when it comes to Formula One. And for that a driver might need to change the gear of his car 8,000 times per race. With around 80,000 components, more than one kilometre of cable in its bodywork and a minimum weight of 640 kg, including fuel and driver in each Formula One car, it is deﬁ nitely not easy to attain the required speed. The high level of friction produced by the rubbing of such a large number of components might act as a deterrent for attaining that high speed that is required in such events. While the drivers were busy preparing themselves for the grand event, Cara Tredget and her team were focusing on making both fuel and engine oil work to best of their capabilities in order to make the speedy engines speedier. Tredget, who works for Shell and is serving as Ferrari Technology Manager said, “Engines of Ferrari rev upto 18,000 RPM. There is a lot of friction produced in the process

Trackside Laboratory of Shell

due to the rubbing of components. Out of the eight engines that every team gets for one season, each engine has to run for around 2,500 km. Thus it is extremely necessary for each engine to perform to the best of its capability And for that to happen, our fuel and engine oils have to be of impeccable quality.” By testing and analysing the engine oil—Helix, the scientists at Shell can tell the health of the engines and predict failures that might occur. They take samples of the oil from the fuel tank after

the engine has been driven and inform Ferrari about the condition of each engine. “It is really important for Ferrari to know the results of the analysis,” Tredget added. Apart from the analysis of the samples of oil from the fuel tank, the team also analyses samples from other storage areas such as tanks and drums. “We check for any sort of anomaly from the ideal samples that were approved by FIA. This is to ensure that the oil remains legal at every point during the season,” she informed.

FIA(Federation Internationale de l’Automobile), the governing body for all F! races. It has speciﬁcations about the extent that a component should be used. The test done on these samples are known as gas chromatography, which basically tests for the ﬁnger print of the oil. “While these tests and other activities in the lab are important for Ferrari, they are extremely important for Shell. We take the learning from here and share it with our colleagues in the main laboratory and other offices around the world. Our oils help in minimising friction and increasing the performance of engine. We use various new additives and components in different proportions and we like to migrate those learnings into our everyday programmes,” Tredget informed. About the learnings from this season she said, “We use two types of biofuel for F1 (primarily because of FIA mandate), which can be employed for commercial usage.” The F1 track also acts as a test track with extreme conditions for testing the performance of the oils.

Festive season fails to cheer car sales Our Bureau Mumbai

DATA MONITOR Sep-11

w w w.amonl ine.in

16-30 November 2011

INTERVIEW

assenger vehicles sales in October, keenly watched by the auto industry, has remained ﬂat in October despite high expectations of a revival due to festive demand on account of Diwali and Dushera. The long waiting-list for diesel cars accentuated by labour unrest in the Manesar belt caused disillusionment among potential customers, according to dealers. Passenger vehicles segment declined by 1.77 percent during April-October 2011 to 1,378,513 units as compared to 1,403,378 units in the corresponding period last year. Passenger car segment declined by 5.05 percent to touch 1,047,804 units in April-October

period as compared to 1,103,516 units in the corresponding period last year. Even as Maruti hogged the limelight with workers at its Manesar plant on strike and disrupting production of close to 60,000 units over 22 days, Honda Siel Cars reduced production at its Greater Noida plant due to parts supply shortage, caused by the ﬂoods in Thailand. The disruption in production led to constraints in supply and added to the waiting-list for popular models including the Swift, the SX4, the Jazz and the City. “Customers are getting discouraged by long waiting-list on many models. It is difﬁcult to get any diesel powered car in less than a month from any manufacturer,” pointed out a Maruti dealer in Mumbai.

Even as HSCI was recovering from the impact of the tsunami in Japan and was ready to resume full production from this month, it was caught off-guard and forced to make production adjustments due to disruption of the supply of components from Honda plants in Thailand, as well as its suppliers, based in northern and central Thailand. The parts shortage will affect all the models manufactured in India, but the impact will be much more on the Honda Brio, Jazz and City because of their larger volumes, according to a company release. Notably, utility vehicles grew by 8.35 percent and vans grew by 13.21 percent in AprilOctober period. The overall CV segment registered growth of 17.95 percent

during April-October 2011 as compared to the same period last year. While Medium & Heavy Commercial Vehicles registered growth of 8.19 percent, the light commercial vehicle segment grew at 26.64 percent. Three-wheeler sales declined by 0.38 percent in April-October 2011 period as compared to corresponding period last year. While passenger carriers registered a decline of 3.94 percent during April-October 2011, goods carriers registered growth of 15.84 percent. The two-wheeler segment grew by 14.84 percent to touch 7,738,755 units during AprilOctober 2011. Two-wheeler and three-wheeler exports grew by 29 and 45.47 percent respectively this ﬁscal as compared to corresponding period last year.

EDITORIAL Time for the silver bullet

he auto industry has come a full circle now, beginning from January 2009 till October this year, as the vehicle production has taken a hit, again, last month. Due to global market meltdown, the production was hit in January 2009. However, the reason for the current bleak situation is largely induced by the rising fuel cost, hardening of interest rates and lower sentiments due to overall slowdown in the economic activity. And this situation is felt across industries as it is evident from the meek sales performances during the peak festive season that ended recently. While the probabilities of taking a corrective action was less during 2009, the current situation can be handled better as most of the functional parameters seem controllable. Petrol has become dearer by about 25 percent during this calendar year and the Reserve Bank of India has increased the interest rates 13 times in the last 19 months, to “control” inflation. However, the central bank’s initiative has only ended up in fuelling the inflation further. For instance, the average day-to-day expenses of common man has increased by more than 30 percent now, when compared to last year though the inflation rate, according to the government, is hovering around ten percent. The assessment of inflation rate per se is far beyond being practical. Therefore peoples’ intentions of spending on anything other than the essentials are contained, which is reflected in the performance of almost all industrial segments including the auto. Passenger cars, for instance, tanked to a ten-year low in October 2011, with the small car segment, which is the most price sensitive, taking the hardest hit. The difference in prices of petrol and diesel has been constantly increasing and is about 40 percent of the cost of petrol now, catalysing sales of diesel vehicles. However, the intent did not reflect in numbers due to engine

supply constraints. Therefore the luxury segment has been hit to some extent. While it is a fact that the government cannot do much on international crude oil prices, what it can is do is to reduce taxes. In addition to the excise duty of 16 percent, petrol suffers a ﬂat ad valorem of `23 and up to 30 percent sales tax by the state governments. The RBI governor has assured, during the last review that the interest rate will not be hiked hereafter. However, it is not enough if the rates are maintained but is absolutely necessary to reduce signiﬁcantly to stimulate the slowing economy. This issue is a special on two wheelers, which has been insulated from the slowdown. Notwithstanding being in a comfort zone, the players in this segment are striving hard to sustain growth levels. Wishing you much pleasure reading. Do send us your feedback.

T. Murrali t.murrali@infomedia18.in

FORTNIGHT’S QUOTES Dan Akerson, CEO, GM on the current uncertainty in auto sales in Europe at an investors’ conference

Rick Snyder, Michigan Governor urging Japan to open up its markets for imports from the US

“There is much more work to be done. We need to do better in Europe and South America. The results there are not sustainable and not acceptable”

“Allowing markets to join (the partnership) and gain preferential treatment for oneway trade could potentially put current and future auto investments and jobs in Michigan and the US at a disadvantage”

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CONTENTS CORPORATE New Holland-EID Parry MoU for farm mechanisation solutions

EID Parry and New Holland Fiat will provide farm mechanisation solutions to sugarcane farmers in Tamil Nadu and Puducherry

HMSI to launch products in all segments

Honda Motorcycles and Scooters India intends to launch new models in 100 cc mass motorcycle segment in first half of next year

GLOBAL WATCH 16

Daimler notches robust performance in third quarter

Daimler’s third quarter group earnings amounted to Euros1,968 million even as EBIT from the ongoing business was higher at Euros 2,110 million

Bosch develops solution to reduces emissions

Bosch Emission Systems exhibited solutions tailored specifically to the requirements of the agricultural sector at Agritechnica

Mitsubishi readies global small car, plug-in hybrid crossover

Mitsubishi is likely to unveil a close-to-market version of a plug-in hybrid crossover due next year and its new global small car at upcoming Tokyo Motor Show

Visteon to supply advanced electronics for Fisker

Vsteon has kickstarted the production of lighting and electronic products for Fisker Karma, an electric vehicle with extended range

Bajaj Auto looking for greater contribution from exports

THE OTHER SIDE

Bajaj Auto has been renewing its focus on international markets over the last few months and intends to garner higher volumes from exports vis-a-vis domestic market

Royal Enfield steps on gas to address market demand

Royal Enfield is gearing up to enhance capacity by setting up a greenfield plant at Oragadam and fine tuning its sales network

Hero MotoCorp exerting pulse of change

Hero MotoCorp’s 150cc Impulse debuts with advanced features like mono-shock rear suspension, high ground clearance, large front wheels and disc brakes

India Yamaha to consolidate motorcycle business

Nagaraja Prakasam, MD, SSEA, CDC Software

India Yamaha is looking at consolidating higher sales volume in motorcycle business and increase its dealership network across the country to give impetus to the sales volumes

BSA Motors to launch two new eScooters

An MBA from the San Diego/Kennesaw State University, Prakasam is a veteran in the industry with 19 years experience, including 15 years in a variety of management roles in the US and in India at CDC Software

IMAGE

Aventador Arrives

Lamborghini Aventador India Launch

Encouraged by the three digit sales of luxury sports cars in India, Automobili Lamborghini launched the new Aventador LP 700-4 model in India, priced at `3.69 crore (ex-showroom, Delhi). Powered by a 12-cylinder 6.5-litre engine, the car can reach a top speed of 350 kmph. The car can accelerate from zero to 100 kmh in just 2.9 seconds. The monocoque made of carbon ﬁbre has taken its inspiration from Boeing aircrafts and has been developed in partnership with the aircraft manufacturer and has helped in exceptional lightweight engineering. The waiting period for the super luxury sports car is 18 months. Lamborghini received a total of 20 bookings (including Aventador) this year for other models. Globally the company claims to have received 1,500 bookings for Aventador since its introduction in Geneva Motor Show earlier this year in March.

Auto Monitor

of the fortnight

BSA Motors is gearing up to launch their new eScooter ‘Fusion’ targetting working women and school students

Auto Monitor

16 - 30 November 2011

INTERVIEW

“Renault committed to delivering quality products” Since the ambitious solo debut with the launch of Fluence in May, Renault India, continues to remain bullish towards its commitment to India. It has increased the network of dealers from zero to forty in six months and hopes to increase it to 100 dealers by the end of 2012. The carmaker will export components worth Euro 70 to 80 million from India this financial year and forecasts the exports to reach over Euro 100 million by next fiscal. Managing Director, Renault India, Marc Nassif explained to Nabeel A Khan that the French carmaker has no plans to get into a direct competition with those who command over 50 percent of the marketshare in terms of sales volume. It would rather define the brand with quality and efficiency. The product showcased here –Pulse—has been designed by the Mumbai team. How do you see their design strength? The car is completely designed for Indian roads and Indian customers. The Mumbai design team does not only design products that are exclusively for India. Whenever we have global design projects the Mumbai design team is sweating on it. The result of their strength is shown here in the latest product (Pulse). If you like this, then they are of course doing great job.

The Pulse was showcased by Renault India in Delhi recently. The car, powered by a 1.5-litre diesel engine will be launched in January 2012. The vehicle developed for the Indian market claims a fuel efficacy of 23 kmpl.

What are your expectations from the new hatchback—Pulse from the Indian market? First, we wanted to increase the volume so that we can increase the dealers’ network because we want to be visible and want to create trust and connect with the customer. We hope this product will help us. Very soon you will be able to ﬁ nd us from Kashmir to Kanyakumari. What is your future sales forecast? Once we reach 100 dealer-

ships in India, we will be able to reach annual sales of one lakh units. We may reach this ﬁgure by FY13 or 15 perhaps. This will completely depend on the market and the kind of competition coming up. However, this is the kind of level we want to reach in the near future. You wanted to be among top three foreign brands in the country by 2015, what is your take on it? Yes, but you don’t measure a brand only by sales volume. You measure brands by certain attributes. According to you, what are the attributes of a brand? The pillars of a brand are quality, excellence, reliability, quality, design, styling, innovation and roominess. How serious is Renault about India? Do you know any brand, which has launched ﬁve cars in a period of 15 months? Nobody has made such quick launches I think. We launched Fluence in May, Koleos in September, and now showcasing Pulse, while Duster will be launched in the second part of 2012. Nobody has

grown network from zero to 40 in six months. Nobody has invested as much as we have done in Chennai; nobody has over 2,000 engineers that we share with our alliance. I have seen many ups and downs. We had frozen the plan and then again re-started and built teams to deliver it. Is this not enough to show our commitment? Do you think the market has responded in the same tone as your commitment? So far, yes. You know the judge is the customers. I told you, it’s not about numbers, we don’t pretend to ﬂow the market; we want to build the foundation of the brand. And the brand comes from the customer satisfaction. What we want is that every single Fluence customer, Koleos customer to be satisﬁed and delighted with the product. We do not have the ambition to go and battle with main player who is doing 50 percent of the volume. Should we start competing with them, reduce the price and distort the quality of the product and not delivering extended warranty. We want to give a warranty of up to two years on our cars. However, our customers have other prefer-

ences, they can always go to our competition. No issues. What are your basic parameters for success? Well, obviously the kind of service we are doing. The only judge is the customer satisfaction and there are different ways to measure it. Let’s take an example, in Germany, we talk about German brands but its public that Renault in Germany has better rating among the customers than that of Volkswagen and I am not saying it, the German customer is saying it. Can you please tell us about sourcing of components from India? We should send exports abroad worth about Euro 70 to 80 million this fi scal year out of India. We are a new brand but we have been here for few years now. We hope to increase the exports of component from India to over Euro 100 million by next fi nancial year. If the FTA with Europe is signed, in that case we cannot do business only for India in CBUs, as for us it will be marginal and might help us in bringing some hi-end cars to India. So far, the volume is very less. How are you going to convince the dealers to join and stay with you for long time? We will achieve the same by telling them about our strategy and acting accordingly. We have told them that we are going to bring five cars by the end 2012 and we are doing it. We keep them informed about the developments. Who is an ideal dealer for you? I reiterate that the customer is the best judge. I think the customers want to be pampered. We would like that our dealers are able to deliver on it. Whichever the issue, the customer is facing the dealers should be able take care of that quickly. The one who could give the customer good ownership cost among other things. What kind of services will Renault offer on its products? We are offering an extended warranty and we think the customer is smart enough to understand. This is going to be one of the attributes which differentiate us from the competition. Service is very important.

Auto Monitor

16 - 30 November 2011

CORPORATE

Bosch kicks off research centre Our Bureau Mumbai

osch recently inaugurated Robert Bosch Centre for Research in Cyber Physical Systems at the Indian Institute of Science (IISc), Bangalore. Bosch is in the process of creating a campus for IT design, cyber-physical systems, mobility solutions and renewable energy in collaboration with IISc. The establishment of this centre is part of the global initiative “Bosch InterCampus Program” which aims to achieve lasting improvements in research conditions for undergraduates and scientists in the university sphere. The programme aims to accelerate progress in the highly promising ﬁelds of the environment, energy and mobility. Cyber-physical systems will address green technology and conserve energy in buildings. The house of the future will know what current energy prices are and the local weather is like and optimise its energy consumption accord-

Former President APJ Abdul Kalam at the inauguration of Robert Bosch Centre

ing to the needs of its occupants. In May 2011, the Bosch Group announced investments of around `300 crore to provide support for universities and research projects in Germany, China, India and the US over the next ten years. Around `140 crore was allotted to India for a ten-year development project aimed at independent “Robert Bosch Centre for Research in Cyber Physical Systems” at IISc. “Technology solutions need to keep pace with life, and at the same time young talented

researchers need our assistance. We are happy to be in a position to support research and innovation in cutting edge futuristic technologies that beneﬁt the society and environment,” said President, Bosch in India and Managing Director, Bosch, VK Viswanathan. “With our funding for higher education in India, we want to challenge the spirit of innovation amongst future technology specialists,” said Managing Director, Robert Bosch Engineering and Business Solutions, Vijay

Ratnaparkhe. Bosch registered a revenue growth of 14.5 percent in the third quarter of 2011 over the same period of last year despite a significant slowdown in most segments of the automotive market. Net sales and income from operations in the third quarter of the year stood at `1,969.5 crore, which is 15.4 percent higher than the corresponding period in 2010. In the third quarter of 2011 Profit Before Tax (PBT) stood at `405.8 crore registering an increase of 21.7 percent compared to the same period of 2010 and Profit After Tax (PAT) at `288.1 crore, an increase of 22 percent. The revenue growth is driven by growth in starters and generators division. Diesel systems also contributed to revenues with growth of 13 percent. Automotive aftermarket division business grew by 13 percent. In the non-automotive business, packaging division business grew by a record 49 percent during the quarter albeit on a small base. Additionally, power tools and security technology have seen 19 percent and 17 percent growth

respectively in the third quarter, 2011. Overall, sales grew by 22 percent in the fi rst nine months of 2011. The company posted net sales and income from operations of `6,066.2 crore for the fi rst six month of this fi scal. Profit before tax went up by 29.3 percent at `1,211.2 crore and profit after tax was up by 29.8 percent at `841.4 crore, over the corresponding period of last year. Treasury income has also significantly contributed to revenues. Income from treasury rose by 71 percent in January-September 2011 as compared with the same period last year. “The trying conditions prevalent in the economy have impacted every sector including the automobile sector. We have been able to maintain reasonable growth despite slowing growth in the automotive sector. With dedicated focus in India, we will continue investing in capacity expansion, diversification and portfolio extension in order to cater to the market with better technologies for enhancing the quality of life,” Viswanathan said.

New Holland-EID Parry MoU for farm mechanisation solutions Our Bureau Chennai

ID Parry and New Holland Fiat recently signed an agreement to provide farm mechanisation solutions to sugarcane farmers in Tamil Nadu and Puducherry. As a part of this initiative, both players will make available mechanised harvesters and other equipments for offering a cost effective solution to farmers, who are currently facing from severe labour shortage. This will ensure the crop is harvested at the right time at a lesser overall cost that the current mode of operation. Managing Director, EID Parry, Ravindra Singhvi said, “Initially, we are planning to reach around 15,000 farmers and later by continuous usage and awareness, we expect that we can address even

Ravindra Singhvi, MD EID Parry during the MoU

larger sections of the farming community. This mechanisation process will help in reduction of process time like cutting and crushing of sugarcanes.” The cost of sugarcane harvesting is on an upward trend every

season over the past few years and last year, it touched `800 a tonne against the price of about `2,000 a tonne for sugarcane itself. With the help of sugarcane harvesters, the company claims that the cost of harvest will be around `360 a tonne, apart from the diesel cost. The initial investment cost ranges in between `80 lakh and `1.5 crore depending upon the size of the harvester. But EID Parry and its associates will arrange the necessary equipments and then hire it out to the farmers. According to Singhvi, the farmers need to be convinced that the changes in cultivation practices will not affect the yield. Moreover the sugarcane is cut from the ground level resulting in increased margins and ﬁnancial beneﬁts. Managing Director, New Holland Fiat (India), Rakesh Malhotra said, “Due to this MoU, New Holland would supply harvesters and other equipment for harvesting, along with providing training to farmers to use the machines effectively and maintenance of the equipment.” EID Parry already has 14 harvesting machines, which saw an investment of around `20 crore, and planning to increase it to 22 machines by this year end and the company will be buying 40 to 50 machines in the next couple of years.

Auto Monitor

16 - 30 November 2011

CORPORATE

Ashok Leyland Dost enters Kerala T Murrali Kochi

induja Group f lagship company Ashok Leyland has launched its small commercial vehicle—Dost in Kerala recently. The company launched its vehicle in three major markets such as Kochi, Kozhikode a nd Thir uva na nt hapura m. The ex-showroom price of the vehicle ranges from `3.79 lakh to `4.39 lakh.

As part of the company’s strategy the vehicle is being initially launched in the four southern states (Tamil Nadu, Karnataka, Andhra Pradesh and Kerala), Maharashtra and Gujarat. It will be made available across the country in a phased manner as the production ramp up is executed. To reach out to the customers in Kerala Ashok Leyland light vehicles has appointed four dealers Malayalam Motors and

ALL appoints Dr Sumantran as non-executive vice chairman

he Board of Directors, at their meeting held on 3 November, 2011, appointed Dr V Sumantran as Non-Executive Vice Chairman of Ashok Leyland.

Indus in Kochi, EVM Motors in Thiruvananthapuram and Indus in Kozhikode. Dost is entering the Small Commercial Vehicle (SCV) market (below 3.5 tonne), which is witnessing a perceptible upward shift in terms of features, performance and payload. The overall LCV market (up to 7.5 tonne) is growing robustly, fuelled by the increase in urbanisation, organised retailing, improved rural connectivity coupled with growth in rural demand. Adding to this are factors like increased focus on the hub-and-spoke model. Dost, which has a payload capacity of 1.25 tonne, will be available in three versions with the top-end version featuring air-conditioning, power steering, dual-colour beige-grey trim and fabric seats. It is equipped with 55 HP, 3-cylinder 1.5 litre common rail TDCR engine, tuned for fuel economy as well as the driveability and gradeability required for Indian roads. The company is also offering readyto-use-vehicles on the Dost

platform for various applications such as refrigerated containers, steel containers, ambulance, aluminium fi xed side decks and service-at-site vehicles. At a media conference in here, the Executive Vice Chairman, Hinduja Automotive and Chairman, Nissan Ashok Leyland Powertrain, Dr V Sumantran said, “With the commercial launch of Dost, Ashok Leyland fi lls an important gap in its product line up. The vehicle embodies our attempt to deliver to the Indian LCV customer, Japanese technology at Indian costs. It is a true reflection of the evolving needs of today’s Indian LCV customer and we are happy that we have been able to manufacture a product that will be attuned to the growing expectations of the LCV market. We have attempted to pack a lot into Dost—increased payload, improved fuel efficiency as well as class-leading performance, comfort and safety, all aimed at offering a uniquely superior experience at a very competitive cost of ownership.”

Dr V Sumantran as Non-Executive Vice Chairman of Ashok Leyland

Besides his responsibilities as Member of the Board, Dr Sumantran will be responsible for the business plan and results of the Defence and Light Commercial Vehicle business units of Ashok Leyland. Dr Sumantran is the Executive Vice-Chairman of Hinduja Automotive and has been on the Board of Ashok Leyland since 2008. He has over 26 years of experience in the automobile industry both in India and abroad, in senior management positions. Vinod K Dasari, Managing Director, will be responsible for all other operations of Ashok Leyland, including manufacturing of products as required by Defence and Light Commercial Vehicle business units. R Seshasayee, Executive Vice Chairman, will continue to have overall responsibilities for a l l operat ions of A shok Leyland, its subsidiaries and associate companies.

Auto Monitor

AUTONOMICS

16 - 30 November 2011

A ﬁne way to cut rising ore costs W

Ajay D’souza Head, CRISIL Research

Swati Rajde Team Leader, CRISIL Research

Rising iron ore prices are escalating input costs for India’s non-integrated steelmakers—steel producers who do not have access to captive iron ore mines. Iron ore, a key input in steelmaking, accounts for one-third of hot metal production costs of these players. Iron ore prices, which increased almost threefold in the past three years, are likely to rise by up to 15-20 percent in 2011-12

ith iron ore prices almost trebling in the past three years, domestic steel manufacturers will focus on reducing costs of this key input. Switching from their traditional feed—lump ore—to agglomerated ore, through sintering or pelletisation, will enable steelmakers to slash ore costs by 10-20 percent. As rising steel demand fuels further increases in iron-ore prices, more players will resort to sintering or pelletisation to mitigate cost risk. CRISIL Research therefore expects utilisation rates of sintering and pelletisation units to increase from 50 percent in 2010-11 to 65 percent in 2014-15. Rising iron ore prices are escalating input costs for India’s non-integrated steelmakers—steel producers who do not have access to captive iron ore mines. Iron ore, a key input in steelmaking, accounts for onethird of hot metal production costs of these players. Iron ore prices, which increased almost threefold in the past three years, are likely to rise by up to 15-20 percent in 2011-12. Moreover, a change in the system of setting iron ore prices in the global steel industry since April 2010, from annual price contracts to quarterly contracts, exposed the players to more frequent changes in costs of iron ore. Reducing iron ore costs is therefore becoming a central focus of non-integrated steelmakers in the country. Acquiring a captive iron ore mine would be one way for the steelmakers to mitigate the cost risk. However, getting land and environmental clearances could be timeconsuming. The alternative is to use a process that will enable the steelmakers to reduce iron ore costs. Of the two forms of iron ore—lump ore and fi nes—steelmakers predominantly use lump ore. Fines are almost 50 percent cheaper than lump ore but cannot be directly used to make hot metal (liquid iron), as they impede the fl ow of hot gases within a furnace. Fines are therefore converted to usable forms—agglomerated ores. In the sintering or pelletisation process, fi nes are agglomerated into larger lumps by adding fluxes that act as bonding or purifying agents. Sinters are clinkerlike aggregates produced from relatively coarser iron ore fi nes, whereas pellets take the form of globules produced from very smooth iron ore fi nes. As sinters and pellets have uniform size, they improve the productivity of the iron-making process, yielding greater pure iron output per tonne of iron ore feed. Steelmakers in India produce iron through the blast furnace or direct-reduced iron process. In the blast furnace process, sinters or pellets are mixed with lump ore in varying proportions—for sinters, the maximum proportion is 70 percent; and for pellets, it is 80 percent. In the direct-reduced iron process, the mix of pellets with lump ore can go up to 80:20.

Sintering & Pelletisation Gain Traction Sintering and pelletisation are gaining traction over the past two years as payback periods for these units have reduced and as lump ore availability is declining.

Source: CRISIL Research, Indian bureau of mines

Source: Metal bulletin, CRISIL Research

Reduced Payback Period A widening price difference between lump ore and ﬁ nes has shortened the payback period of sintering and pelletisation units. Over 2008-09 to 2010-11, the price differential has increased from `1,800 per tonne to `3,100 per tonne. Cost savings per tonne of hot metal—from using agglomerated ﬁ nes—have therefore shot up. In the case of sintering, average savings have jumped from `500 per tonne in 2008-09 to `1,900 per tonne in 2010-11. With pelletisation, average savings have risen from `1,000 per tonne to `2,550 per tonne. The payback period for sintering and pelletisation units has therefore declined to two-three years in 2010-11 from six-eight years in 2008-09.

Declining Availability Of Lump Ore A steady decline in lump ore resources will drive steelmakers to use sinters and pellets. The proportion of lump ore in iron ore production declined to 44 percent in 2009-10 from 47 percent in 2006-07. This trend is likely to continue unless new mines with higher lump ore reserves are discovered. As the decreasing supply would push up lump ore prices, non-integrated steelmakers will increase the use of agglomerated ﬁ nes in their production mix.

Sinter & Pellet Units Utilisation To Rise Usage rates of sintering and pelletisation units in India have remained

insignificant so far. Less than 40 percent of the sintering and pelletisation capacities were used in 2009-10. With prices of iron ore rising rapidly, an increasing number of steelmakers are setting up sintering or pelletisation capacities. CRISIL Research expects sintering and pelletisation capacity to increase at 15 percent per annum over 2010-11 to 2014-15. Among non-integrated steelmakers, JSW Steel, a large player, is setting up sintering and pelletisation capacities. Of the medium-sized players, JSPL and Ispat Industries are establishing sintering units, whereas Monnet Ispat and Welspun Power and Steel are setting up pelletisation units. Large integrated players like Tata Steel and SAIL, which currently have only sintering units, are also setting up pelletisation units. As these players step up the usage of fi nes, utilisation of sintering and pelletisation units will rise from 50 percent in 2010-11 to 65 percent in 2014-15. The proportion of fi nes in the total consumption of iron ore in India will therefore move up sharply from 43 percent to 60 percent over the five-year period.

(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 2011

TWO-WHEELER SPECIAL

Auto Monitor

SAP recoding efﬁciency with new software Nabeel A Khan New Delhi

oftware provider, SAP India, keeping up with the increasing demand and sharp competition, has added new features to its software and also launched low-cost solutions. It has recently integrated social networking media in its CRM and launched low cost faster Rapid Deployment Solutions (RDS) in CRM and a softwarebased Call Centre—this shall lower the total cost of ownership of the OEMs and help them to grow faster, according to a company spokesperson. Recent media reports suggest that around 40 million Indians are using online reviews to make their purchase decisions. SAP foreseeing the importance of the online platform launched some software which integrates Facebook, Twitter and other such social networking media, which maps customer responses and posts into the SAP CRM system and then helps the automotive company to reach out to the customer using the same medium of social networking. “SAP holds a prominent share in the IT market. SAP has presence in some of the major automotive companies in India. We have our solution footprints in companies like Carnation, Hyundai Motors, TVS Motor, Hero Motors, Ashok Leyland, Bajaj Auto and Aditya Auto Products.” Head, Strategic Solution, SAP India, Neeraj Athalye told Auto Monitor. Seeing the huge potential of growth and the potential of small companies becoming big very soon, SAP has launched RDS for CRM and Business Communication Management (BCM), which can get deployed within a period of six weeks and hence help strengthen the sales, marketing, service and call centre business of various automotive companies. To reliably reduce manufacturing costs, consistently meet customer requirements, and comply with quality and safety standards, leading automotive manufacturers focus on end-toend operations—with complete transparency across the entire operational chain. For such thing SAP offers Supply Chain Management (SAP SCM) and SAP Transportation Management (SAP TPM). With SAP CRM, one can do Sales Force Automation, provide customer service and execute marketing activities. SAP also has DBM (Dealer Business Management) which helps the dealers to manage their end-to end processes. Thus, coupled with SAP CRM and SAP DBM— SAP helps automotive companies to manage the entire customer life-cycle. It also with its other line of business solutions like Product Lifecycle Management (PLM), Strategic Resource Management (SRM), Human Resource Management (HRM), Supply Chain Management (SCM) and Manufacturing, arms its automotive customers with all possible business functionalities to help them run better. The OEMs and component makers’ need strong visibility into the entire upstream value chain. SAP Supply Chain Management helps them to do the same. With SAP Dealer Business Management System

integrated with SAP Customer Relationship Management—it makes the parent company and all its dealers—One Single Entity. There is unified complete holistic experience for the end consumer—thus resulting in ultimate customer satisfaction—hence more sales for the dealers and thus for the parent organisation. SAP maximises the value from each customer by keeping profitable customers loyal, decreasing service costs through greater efficiency, and increasing service revenue. With SAP CRM, the automotive customer can provide service professionals with the information and tools they need to effectively and profitably plan, execute, and analyse service processes. This helps to track service contract entitlements, to eliminate service leakage and achieve service-lev-

el performance metrics. It equips agents with the tools they need to resolve customer issues on the fi rst contact, boosting customer satisfaction. The application supports field service professionals for quick and effective resolution of problems in remote locations and provides 24x7 self-service for online customer support at a fraction of the price of regular phone support. With the application’s service analytics and SAP BusinessObjects Business Intelligence (BI) solutions, automotive customers can make smarter business decisions. Configured for automotive companies, SAP solution helps them streamline and automate processes for demand and order scheduling. Specifically, they can integrate key processes similar to those used to manage fi nances, purchasing, and production. As a

Neeraj Athalye, Head, Strategic Solution, SAP India

result, they can process forecast delivery schedules and use the forecasts as the basis for their production planning. The sales team can quickly and accurately check order status, pricing and product availability. This helps to satisfy customer requirements more quickly and consistently, reduce inventory through increased vis-

ibility, and increase your on-time delivery rate. As this solution provides the customer with integrated processes across the entire order-to-cash lifecycle, they have continuous document ﬂow and support for monitoring for every step from order entry to transportation. They can master diverse logistics processes, such as just-in-time/just-in-sequence (JIT/JIS) processing, subcontracting, and third-party order procurement. The sales team can also track and manage invoices, and one can generate credit memos for retroactive price changes when actual material prices differ from previously contracted prices. The solution helps one reduce order lead time, lower administration costs, and improve logistics through realtime transaction processing.

Auto Monitor

TWO-WHEELER SPECIAL

16 - 30 November 2011

HMSI to launch products in all segments Nabeel A Khan New Delhi

onda Motorcycles and Scooters India (HMSI) will expand its products portfolio to be present in all twowheeler segments. As a part of this strategy, it will be launching new models in 100 cc mass motorcycle segment in fi rst half of next year. It will also expand its production capacity from 16.5 lakh units in FY2010-11 to 40 lakh units in the fi rst half of 2013.The production ramp up will enable the two-wheeler maker to reduce waiting periods for various products. “Honda entered into the motorcycle segment in October 2004 with Unicorn. Till now, we had had most ly niche motorcycles like CB Twister, CBF Stunner, CB Unicorn, CB Unicorn Dazzler and CBR 250R. In 125 cc segment, CB Shine is the top selling model. We hope to emulate same success in other segments with mass model (100 cc),” Vice PresidentSales, Marketing & Corporate Affairs, HMSI, NK Rattan told Auto Monitor. HMSI is already present in the high-end segment and retailing the imported fun bikes—1000 cc naked sports bike ‘CB 1000R’ and 1000 cc super sports bike ‘CBR 1000RR Fireblade’ since 2008. In July 2010, it also introduced the 1200 cc global sports ‘Tourer VFR1200F’ to provide complete range of Honda’s global fun bikes to biking enthusiasts in India. The Japanese automobile giant plans to sell more than 100 units during this financial year.

Expansion Under Progress The Indian two-wheeler mar-

NK Rattan, VP, Sales, Marketing & Corporate Affairs, HMSI

HMSI is to launch new models in 100 cc mass motorcycle segment next year. It will also expand its production capacity from 16.5 lakh units in FY2010-11 to 40 lakh units by 2013

ket is growing at a rapid pace so HMSI is also expanding its production to meet the growing demand. The company is not looking at expansion through tieups and JVs but by building its own capabilities to meet customer aspirations in a phased manner. South India is the biggest market for the company and the region offers infrastructure, supplier base and manpower availability. It decided to set up its third plant in Narsapura Industrial Area,

Karnataka (located around 52 km from Bengaluru). With the third plant being setup, the two-wheeler maker will ﬁ rst focus on meeting the southern market demand, which will result in cutting down on the cost of logistics. This plant will be equipped to produce both scooter and motorcycle models by the early half of 2013, which will enable the company to effectively reduce transit time and serve customers faster. However, model-wise production plan is not yet ﬁ xed for the third plant. The company will look at all aspects including supply chain to effectively maintain its competitive edge to produce high quality models at reasonable prices. Accordingly, around 25 suppliers will put up new facilities near HMSI Narsapura plant. It has received various infrastructure and agreement related support from the Karnataka government like good connectivity, power supply and assistance in expediting government clearances.

HMSI production line

“With the start of operations in our third factory by early first half of 2013, our cumulative production capacity from three plants (located at Manesar in Haryana, Tapukara in Rajasthan and Narsapura in Karnataka) will reach four million (40 lakh) units annually,” he added. In FY11, the production stood at 16.5 lakh units. The second plant at Tapukara, Rajasthan that started operations in July, 2011 was built to reduce the waiting period for customers. Already the ﬁ rst phase of 0.6 million units production is completed and now it is progressing to 1.2 million units by the end of this ﬁscal.

Double Digit Growth The company expects the demand to continue to grow in long term while the increase in interest rates and petrol prices may affect sentiments in short term, overall two-wheeler demand will remain in double-digits due to the growing economy, low running and

maintenance cost with high fuel efﬁciency. In FY 2011-12, the company expects the two-wheeler industry to have healthy double digit growth. HMSI network penetration is less compared to other manufacturers. Its network has been made mainly on basis of model line-up. Till now, the company had models mainly for urban areas and focused on youngsters. So our network penetration in urban area is quite good. “Now we will rapidly expand in India, we will increase our penetration in a phased manner by adding 300 new outlets (100 dealerships, 100 branches and 100 authorised service centres) every year. In FY 2010-11, HMSI Sales & Service network stood at 1,220 outlets (420 dealers, 410 branches & 390 authorised service centres). In the current fiscal, we plan to add 300 new outlets to reach network of over 1,500 outlets to provide service closer to customer.” Rattan summed up.

Auto Monitor

TWO-WHEELER SPECIAL

16 - 30 November 2011

Bajaj Auto to have greater contribution from exports vis-a-vis domestic sales Our Bureau Mumbai

ajaj Auto has renewed its focus on international markets over the last few months, if the company’s exports are any indications. The cumulative two-wheeler exports of the company (AprilSeptember) this ﬁ scal has been to the tune of 682,562 units, a growth of around 33 percent while exports for the month of September stood around 115,422 units, a growth of 38 percent over the corresponding month in the previous year, according to data available from SIAM. The company’s domestic sales rose at single digit rate in the recent months, albeit on a much higher base. Rajiv Bajaj indicated in a recent media interaction

that the international sales may surpass the domestic sales in the near future for Bajaj Auto. Industry motorcycle sales in September rose around 20 percent compared to the previous year. The company’s export revenues jumped to touch `1,733 crore in the September quarter. The ﬁ rm said it was seeing robust demand from overseas markets, which contributes more than 36 percent of all vehicles sold. The company is expecting to reap beneﬁts of product price increases in the next two quarters. It had increased export prices by 3.5 percent from October this year. For the domestic market, the company raised prices across Discover and Pulsar models and some three-wheeler models as well.

The Bajaj facility

Export revenues jumped to `1,733 crore in the September quarter. The firm sees robust demand from overseas markets. It had increased export prices by 3.5 percent from October this year. Also, it is looking to increase its export share in the regions like Africa and Latin America

Bajaj Auto currently has its footprint in 50 countries and is looking at newer geographies to increase its export share in the regions like Africa and Latin America. These regions already contribute major proportion of export revenues for the company. Latin America contributes around 20 percent of company’s international business, excluding Brazil. A company ofﬁcial indicated that the company is in the process of devising a business model for entering the Brazilian market. It is a large market where Honda has a strong base. Market size outside India is four times higher than that of domestic market. The company has a global share

The plant

of around 10 percent in product segment that it operates in. The company’s three-wheelers exports have already surpassed domestic sales. Bajaj Auto is on track to meet the sales target of four million vehicles by the end of this fi scal (including exports). The company has sold 2.25 million units in the fi rst half of this year and is positive about achieving 4.5 million units by the year-end. The company’s net sales for the quarter stood at `5,267.2 crore in the quarter ended September, 2011 as compared to `4,341.82 crore in the corresponding period last fi scal. Its net profit for the quarter ended September, rose to `726 crore from `682 crore in the corresponding period last fi scal. The clocked a mark to market loss of `95 crore for the quarter, which it termed as a notional loss related to some

range forward contracts which the company had entered into to protect its export realisations. It also suffered a production loss of around 25,000 motorcycles at its Pantnagar facility due to curfew imposed in the area in October. Total motorcycles sales including exports of the company stood at 351,083 units in the month of October this year as compared to 329,776 units in the corresponding month last ﬁ scal. The cumulative motorcycles sales stood at 2,341,491 units in April to October period. Meanwhile, Bajaj Auto has kept its expansion plans on hold. It was earlier planning to look at Gujarat for setting up operations. However, looking at the overall industrial slow down, the company is now closely watching the sales trend before deciding on further course of expansion.

Auto Monitor

TWO-WHEELER SPECIAL

16 - 30 November 2011

T Murrali Chennai

espite getting comfortable orders while the waiting period for some models extends to little less than a year, the Chennai-based Royal Enfield is not taking it easy. The company, while gearing up to enhance capacity by setting up a greenfield plant at Oragadam, about 45 km south of Chennai, is also alongside fi ne tuning its sales network and working on extending its product applications for a sustained growth. Speaking to Auto Monitor, the CEO of Royal Enfield, Dr Venki Padmanabhan said the motorcycle customer demographics are moving in to the space where the company is operating inthe leisure segment with engine capacities of 350 and 500 cc. While the regular motorcycle segment is growing at around 15 percent, the premium sports touring segment is growing at around 30 percent, enlarging the addressable market for the com-

pany. Therefore it is planning to capitalise the emerging opportunities better. And the fi rst step is to not put a cap on the capacity of the new plant. The rated capacity of the new plant is 150,000 units annually but now it is kept flexible. Believing strongly that only business with good margins can reinvest and grow, Padmanabhan views that the capacity can be planned based on the market demand as well as the timeline that it needs to address the demand. “We will be very agile to address the market demand and there is thinking and planning behind this attitude. We will respond faster now than earlier,” he said. And this holds good for outsourcing and in-house components. The proposed plant is slated for completion by the fi rst quarter of 2013 and will be equipped to produce the entire product range of Royal Enfield. The company, the motorcycle division of Eicher Motors, will create the super structure encompassing basic facilities

Dr Venki Padmanabhan, CEO, Royal Enfield

Photographs: T Murrali

Royal Enﬁeld steps on gas to address market demand

Assembly line

to assemble more motorcycles than the stipulated number. This will enable it to accelerate the output at shorter gestation period and with marginal investments. The existing plant in Thiruvotriyur, about 30 km north of Chennai, will only assemble engines and become a feeder plant to the upcoming facility. Currently this plant has a capacity to make around 70,000 motorcycles per year. The new plant will have a stateof-art manufacturing facility with a full-f ledged paint booth. The company currently has about 205 dealers and it is planning to aggressively expand its network. When asked how the company could expand when the average waiting period for

different models varies from three to eight months, he said the objective is to start with the aftersales service as, “We need to support our existing customers first.” Later these centres will be expanded to sales outlets since the capacity expansion project will address the demand. “Because the brand is resurgent and businessmen see potential in taking up dealership business,” the company is looking at expanding capacity as it will be win-win for both, he said. Royal Enfield is also looking at application expansion of the range of motorcycles it is already present. Yet another objective for the company is to replicate the sales machinery it established in India across

to the overseas market. There is no need for the company to establish its brand in overseas market as the brand recall in already high. “We just need to give the product worthy of the brand,” he said. Royal Enfield hopes to grow by about 60 percent this year. Last year it sold an all-time high of 52,574 units, which was marginally higher than 51,955 units sold in the previous year. The company’s domestic line up includes the Bullet 350 UCE, Bullet Electra UCE, Classic 350, Classic 500 and the Thunderbird Twinspark. It exports to about 35 countries across the world, including the US, Japan, the UK, several European countries and West Asia.

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Auto Monitor

TWO-WHEELER SPECIAL

16 - 30 November 2011

Hero MotoCorp exerting pulse of change Shambhavi Anand New Delhi

ero MotoCorp launched its fi rst bike under the brand name ‘Hero’ after the split with its Japanese joint venture partner Honda. Impulse, as it is known, was fi rst showcased at the launch event of the company’s solo brand identity as Hero MotoCorp at London’s O2 Arena in August earlier this year. Powered with a 150cc engine, Impulse features like nitrox-gas fi lled mono-shock rear suspension, high ground clearance with large front wheel and stud-type tread pattern tyres and large front disc brakes. It is available in five different colours—black, vibrant blue metallic, sports red, leaf green metallic and vibrant orange. “Impulse—the first model to be launched under our new

brand identity—is not just a new product. It also introduces an entirely new segment within the motorcycle market,” Senior Vice President, Marketing and Sales, Anil Dua said. The company has introduced the bike as an ‘onroad-off-road’ vehicle which can be used on regular city roads as well as on off-road terrain. “We are not positioning this as a niche segment bike. We are targeting all the typical 150 cc bikers who have a desire to do off-road activities with their motorcycles,” Dua said. The bike has been priced at `66,800 (ex-showroom Delhi). “We sold a decent number of the newly launched bike and continue to receive several enquiries everyday,” a Delhi based dealer said without wanting to reveal his identity. Hero MotoCorp’s other 150 cc bikes include Achiever,

CBZ Extreme and Hunk, which are priced between `55,925 and `65,215 (ex-showroom Delhi). Impulse is the ﬁ rst product after the change brought about in the company and the company expects that it will help it in gearing for the changing paradigm in times to come. Talking metaphorically about change Dua had once said, “When a change is brought about there are four steps that each one of us should embrace, namely ABCD of change.” He explained that ‘A B C D of change’ denoting ‘accepting the change’, ‘being the change’, ‘celebrating the change’ and ‘driving the change’.” Keeping the target audience in mind, the company has roped in youth icons like actor Hrithik Roshan and cricketer Virendra Sehwag as part of its overall branding campaign. The television jingle ‘Hum Hai Hero’ is composed and sung by singer and Academy Award winner, AR Rahman. At the launch of its new brand name the company had announced to pump in an investment of `4,500 crore over the next five years to support its initiatives. It has also announced that the investment will be put in setting up two new plants one in South India and another one in western part of the country. It also proposed to set up a global parts centre in Rajasthan. In five years the company expects to take its gross annual sales to $10 billion, selling 10 million two-wheelers, a portion of which will be sold outside India. It has identiﬁed 30 global markets including countries in Southeast Asia, Latin and Central America, and Africa. It plans to start assembly plants outside India to address the export markets, though the initial exports will be from its Indian plants. The company is also in discussion with a European player for technology tie-up.

Auto Monitor

TWO-WHEELER SPECIAL

16 - 30 November 2011

India Yamaha to consolidate motorcycle business Shambhavi Anand Greater Noida

ith a view to increase its presence in the twowheeler market, India Yamaha, apart from venturing into the fast growing scooter segment, is looking at consolidating higher sales volume in motorcycle business. The Japanese OEM will also increase its dealership network across the country to give impetus to the sales volumes. “We are currently looking at closing this year with a sale of 3.33 lakh units. This would mean that we have achieved a growth of around 40 percent in the premium segment. We also have acquired a 15 percent market share in the premium segment. This also means that we have overachieved our plan of having a 12 percent market share in the premium segment,” National Business Head, Sales, India Yamaha Motor, Roy Kurian told Auto Monitor. In October 2011 alone, it sold 47,240 units as against 37,251 units sold in October 2010. The company sold 38,229 units in the domestic market in October 2011 as compared to 31,791 units sold in the same month last year, which is a growth of 20.3 percent. For 2012, the company expects to touch the target of 4.5 lakh units. Geographically, trends show that the sales of the Japanese manufacturer are the best in the

Roy Kurian, National Business Head, Sales, India Yamaha Motor

western and the southern parts of the country. Kurian attributes this to the higher disposable income of the people in these regions and also the higher awareness about technology and performance. The company also claims that it has a market share of around 30 percent in the national capital for similar reasons. “The sales of our bikes roughly follow the GDP pattern of the country; the higher the GDP of a state the higher will be our sales in that state. Also, we are doing very well in the north-eastern states like Assam. The difﬁcult terrain might be one of the reasons that encourage people to buy high performance bikes like ours. In addition, the people there are style conscience which also helps us.” He added that these were the two main targets for the company in the beginning of the year 2011. The Japanese two-wheeler

Yamaha facility

manufacturer follows the calendar year pattern. In addition to increasing the sales ﬁgures, the company has also increased its dealership network drastically. It has 170 Yamaha Bike Stations (YBS) and 400 Yamaha Bike Corners (YBCs) to its credit which will help in serving the customers better. The company which has a current market share of around four percent in the two-wheeler segment in the country has a strong presence in the 150 cc plus segment with three of its products—the R15 version 2.0, FZ series and SZ series. It plans to continue its focus on this segment and not to shift its focus to the lower segment of 100cc bikes. “Our DNA is about style, performance and innovation rather than mileage, durability and cost. Of course cost and durability are of prime importance but the buying factor in the premium segment is

mainly style and comfort, unlike the economy segment. We do not want to drift away from our DNA,” Kurian added. Elaborating further upon the ‘top down approach’, which the two-wheeler giant follows, Kurian said that the company ﬁ rst targets the innovators and the trend setters in the country who are role models for several others. “We would like to continue this approach. And once we reach ‘down’, the numbers are going to be great. We will become the biggest player in India.” The company already has two plants—Surajpur in Uttar Pradesh and Faridabad in Haryana—plans to put up a third plant, though it has not ﬁnalised the location yet. Both the existing plants put together it produces upto six lakh units. The two plants have a maximum capacity of producing upto 10 lakh units. “We have planned to reach upto one million sales from these

two plants by 2014. And hence we are upgrading the two facilities by setting up new lines and increasing the number of shifts. However, after that we would require a third plant,” Kurian said. The investments to be put in for the expansion of the existing plants have not been ﬁnalised yet. The two plants cater to the needs of the local market and well as the export market. The export ﬁgures of the company stood at 9,011 units in October 2011 while 5,460 motorcycles were exported in October 2010, a growth of around 65 percent. Among the new exports markets of the company include the UAE, Hong Kong, Ecuador and Austria. Updating about the scooter project of the company, Kurian informed that the project is almost 75 percent ready and the customers can expect the products in 2012.

Garware Motors to localise parts for ‘Hyosung’ bikes Our Bureau Mumbai

arware Motors is evaluating sourcing parts from local two-wheeler suppliers. It is mainly looking to source parts or assemblies in an ‘off-theshelf’ arrangement rather than working with vendors towards new development. Some of the key parts or assemblies that the company is looking to source include ﬁ lters, brakes, brake shoes, horns, lightings and other critical and non-critical two wheeler components. The company has already set up a

team of around 10 to 12 people for sourcing local components. The company’s technical partner S&T Motors is also looking to source components for 250 cc motorcycles and Indian suppliers could be considered for such sourcing exercise. Such a supply arrangement could be beneﬁcial to both partners if there is a double digit percentage reduction in procurement and assembly cost of systems and components for 250 cc motorcycles. If a competitive vendor base could be established in India, Garware Motors could be considered as a global production and sourcing

hub for 250 cc motorcycles for S&T Motors, according to company ofﬁcials. “We need to have our technical partners’ approval before we can procure parts or assemblies locally. In the process, we are looking to enrol suppliers for Hyosung’s 250 cc motorcycle as well as 650 cc bikes. We are looking to have quality parts at competitive cost,” said Chief Operating Officer, Garware Motors, Hyder Ali Khan. The company is investing around `50 crore in order to expand its current production capacity from around seven

is targeting to sell around 1,000 bikes in the current fiscal and expand its dealership network to around 40 by the end of the fiscal. It would be in a position to achieve a volume of around 1,500 units by next year after its expansion is completed in this fiscal. The company is looking to introduce three variants of 250 cc by March this fi sDiya Garware, MD Garware at the launch cal, similar to three variants of 650 cc bike. Khan added that motorcycles per day to around Hyosung holds around seven per30 units at its Pune facility. It is cent global marketshare in 250 cc also in the process of setting up segment and is present in around an engine assembling facility 20 countries. at its Wai plant. The company

TI Cycles launches hub-powered CMX Bhargav TS Chennai

I Cycles, a division of Mu r ug appa Group owned Tube Investments of India, has come out with the indigenously-designed a nd locally-made CMX (Cycle Motor X) Thunderbolt bicycles, which are powered by hub motors. The company has tested the vehicle for around 1,200 km on Indian road conditions, which is positioned to attract urban adults and school students. According to the company’s Senior Manager, Marketing, Ganesh V, the CMX Thunderbolt is mainly targeted at the urban youth. The vehicle operates on a 200-watt motor and uses an Exide battery, which gives a range of around 30 km per charge. Recently TI Cycles launched this particular model and soon it will be launching another model and it is primarily targeted towards

Ganesh V, Senior Manager, Marketing, TI Cycles

urban women. That particular model comes with 24 inch frame with lower step and power and is expected to be less than 250 watt and does not require license and registration. The company manufactures the vehicles locally in Chennai, and except the hub motor that is imported from China, all the parts are localised. Generally an electric powered vehicle uses onboard batteries and a single electric motor to power the two

CMX bicycle

wheels. However, some of the latest electric bicycles work with the hub motor. Instead of having one motor powering all the wheels using gears or chains, the motor is directly connected into the hub of the wheel. So the motor and wheel are same, which help to gain more power. By adding hub motor and lead acid batteries, the bicycle’s weight is increased marginally by ten kilograms, but while driving, it gives pleasant and

effortless ride. The vehicle is designed in such a way that it will help the riders by giving additional thrust. This is done by operating the variable throttle on the handlebars to activate the motor. The motor drives the pedals, just like the stoker of a tandem bicycle. The hub motor cannot be operated without the initial pedalling; after the initial start up, the riders can shift gears to maintain normal pedal speeds. Ganesh said, “There is a sensor that drives the motor according to the pedal speed. Basically we have changed the frame of the vehicle to accommodate the motor and battery unit. The design is made in such a way that the vehicles stability is not changed, hence the battery and motor are placed in the centre.” For one full charge the battery takes six to eight hours and the vehicle can achieve a top speed of 30 km/hour.

To achieve more torque and to gain higher speeds, the motor should be operated in its normal conditions, which will also gain better range when compared to the typical electric bike products that are lacking in variable motor gearing. “We see this as an extension to the cycle. It is not seen as a motorcycle and it is useful to people who travel a particular distance daily and were their survival is based on this,” Ganesh added. Currently, the vehicle cost is around `14,000 and it is planning to localise the motor parts to reduce the entire cost of the vehicle. Initially TI Cycles is planning to sell 1,500 units and after launching new models, it is planning to sell more numbers next year. For the company’s bicycles / e-scooters division, in the last quarter ended 30 September, the proﬁt notched up to `320 crore, a growth of 15 percent in the yearago period.

16 - 30 November 2011

TWO WHEELER SPECIAL

Auto Monitor

Bhargav TS Chennai

he ongoing increase in fuel prices has led to greater focus on alternative technologies like hybrids. EVs also known as battery-operated vehicles (BOVs) come in various configurations including bicycles, mopeds, scooters, motorcycles, three-wheelers and cars. Given the current conventional fuel crisis, these maintenance-free and zero emission vehicles are drawing considerable number of buyers. Over 300,000 electric scooters were sold last year in India. This is a clear indication that customers are moving towards electrification instead of gasoline. To address the increasing demand in this segment, Chennaibased BSA Motors is gearing up to launch its new eScooter ‘Fusion’ in the Indian market. Currently the company has three variants and this new model is expected to attract the working women and school students. In a recent interaction with Auto Monitor, Senior Vice President, Sales & Marketing BSA Motors, Arun Alagappan said, “We will be launching the Fusion model next month, which is targetted at working women and school students. The vehicle is designed to be lighter, takes a payload of 75 kg, is fitted with a 250-watt motor and can travel 70 km per charge. The Fusion is 30 percent localised and we are expecting to increase the localisation level soon.” In early 2012, the company is also looking to launch another model which is powered with a 500-watts motor, which is under testing and has a top speed of 45 kmph. The Fusion has gone into extensive testing for the past six months in the road conditions. Therefore the company sees this particular model is well positioned for its segment and hopes to sell around 3,000 units by the end of 2011. “We carried out extensive market research to understand customer preferences in terms of features, colours and graphics. The product has been specifically designed to suit Indian conditions and has gone through extensive tests and validation to suit to the Indian road and weather conditions,” Alagappan said. From the date of inception, BSA Motors has made around 280 changes in vehicles to meet customers’ expectations. The manufacturer is working on an energy metre concept, which will help the users to fi nd the amount of electricity consumed for the charging the vehicle. After implementing this, users can charge their vehicles anywhere and can pay as per the electricity consumed. When asked about the light weight technology, Arun said, “For the past two years we are working towards this and we have made few changes in the tube structures. To increase its strength and to reduce its weight, we had two specialists from Japan who suggested changes in the tubular structures to make it lighter by 20 kg. As a result, we are getting a mileage of 70 km per charge and are looking to improve further,” he said. At present, the vehicles are fitted with lead acid batteries that weigh around 30 kg. To reduce its weight, the companies have

to opt for lithium ion batteries, which are lighter in weight and more efﬁcient but the cost is three times higher compared to lead acid batteries. The cost of the lithium ion batteries is more since the cost of the technology is higher. Therefore if the cost is reduced, the company would opt for lithium ion batteries. According to Alagappan, electric scooters are selling well in China. “It is actually a paradox that we are emerging only now. As an industry, the time has come for automotive majors to seriously consider India as a market. In China, currently, two-thirds of all two-wheelers sold are EVs but India is much behind from what is happening in China. As far as Indian companies are concerned Hero Group and Yo Motors are already into this segment and many other companies are plan-

Photograph: Bhargav TS

BSA Motors to launch two new eScooters

eScooters being assembled in Ambattur facility

Arun Alagappan, Sr Vice President, Sales & Marketing, BSA Motors

ning to come out with their EV products. Thus the entire auto industry is focusing on this segment.” Currently, the company’s Ambattur plant has a production capacity of 150 eScooters a day, which can be ramped upto 300 units per day as and when

required. The plant is equipped with painting, assembly and testing of eScooters. Key parts like motors, controllers, batteries, lamps, wheel discs, tyres and tubes have been sourced from reputed automotive vendors. The plant is equipped with latest technology for comprehen-

sive full vehicle performance, a test track and a motorised conveyor assembly line with modern assembly tools. In the current year, BSA Motors will be selling around 17,000 units and due to this upcoming new launches it is targeting to sell around 30,000 vehicles in 2012.

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16 - 30 November 2011

CORPORATE

Formula One car batteries from Base Our Bureau Chennai

The battery has been designed with ‘Absorbed Glass Mat (AGM) Separators—an advanced battery technology that eliminates the need to add water

ase Batteries launched Formula One race car battery in New Delhi last month. The special battery designed and manufactured for HRT Formula One cars weighs 900 gm and is a 12V, 2.3 ampere hour battery. The dimensions of the battery are 114 X 39 X 87 mm. The launch makes Base Batteries, which has entered into a technical partnership with Formula One HRT team, the ﬁ rst Indian battery manufacturer to be the ofﬁcial battery supplier for the Formula One HRT race car. Narain Karthikeyan, who drove the Formula One HRT race car for the Indian Grand Prix 2011, had unveiled the battery. “The batter y has been

Narain Karthikeyan launching the battery

designed with ‘Absorbed Glass Mat (AGM) Sepa rators—a n adva nced batter y technolog y that eliminates the need to add water forever. The batter y also has several features like improved charge

recover y capabi l it y f rom deeply discharged condition, longer shelf life, improved lifecycle performance, extreme v ibrat ion resista nce, Va lve Regulated Lead Acid (V RL A) spill proof design-totally sealed

and spill proof so that all acid is absorbed in special plates. The advanced lead-calcium technology holds its specific gravity more than three times longer than conventional led antimony batteries,” Head, Business

Development, Base Batteries, Kuldeep Verma said. Base has had a continuing relationship with sports in India. After sponsoring the Canadian Cricket team during the ICC 2011 World Cup, Base has now associated itself with Formula one. The company manufactures batteries, inverters and UPS for industrial and domestic energy purposes across the country. Base Batteries notched a turnover of around Rs 600 crore and has recorded an average growth rate of 30 percent. It was founded in the year 1987 as battery distributors of a private battery company in India. It has its manufacturing plant and R&D facility at Solan, Himachal Pradesh. The plant manufactures up to 50 MAh/ month batteries.

Traffic volunteering scheme kicked off by Hyundai Our Bureau Mumbai

yundai Motor India Foundat ion (HMIF) kicked off the fifth edition of Hyundai Traffic Volunteer Scheme.

Volunteer Scheme Students with police

Managing traffic is a growing concern of most Indian cities with road safety being the biggest casualty. Recognising the need to fi nd sustainable solutions, HMIF has been partnering Traffic Police Departments across select Indian cities to help regulate traffic since 2006. Instituted as a part of the CSR initiatives, students from economically backward sections are recruited to manage traffic during peak hours. Sanjay Arora, IPS IGP/ Additional Commissioner of Police handed over the first month’s stipend of `1,650 to each student who began their stint. “Chaotic traffic is a bane for every city which seems to be worsening, year on year. Poor road sense, violation of traffic rules, increased vehicular and human traffic, diversion and narrowing of roads due to construction or maintenance work, compound the woes of commuters. The support from HMIF is welcome at this juncture, not because it eases and regulates traffic, but also helps in augmenting scarce resources,” said Sanjay Arora. Senior VP, Finance and Corporate Affairs, HMIL, R Sethuraman said, “This scheme is a win-win proposition for all stakeholders. It instils a sense of social responsibility amongst students while providing them a source of income to support their education; the additional manpower helps the traffic department regulate traffic during peak hours and relieves traffic woes and stress for the commuter. The programme has been so successful that we have been able to replicate it in cities like Delhi and Kolkatta. On the anvil are similar programmes in Mumbai, Bangalore and Hyderabad,” he said.

16 - 30 November 2011

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CORPORATE

Hub and spoke transportation may lose momentum with onset of GST: CII summit Our Bureau Mumbai

oods and Services Tax (GST) regime may render the hub and spoke model of transportation less relevant as multiple warehousing in different parts of the countries may become a thing of past, according to leading logistics solution providers, who participated in the recent Logistics Summit 2011 organised by CII Institute of Logistics in Mumbai. Participants of the latest edition of the summit included officials from leading Fast Moving Consumer Goods (FMCG), automobile, engineering and other infrastructure development companies. The summit was also attended by a cross-section of goods transporters from across the country. A major point of deliberation included the impact of GST and changing scenario in the inland logistics segment. Logistics operators pointed out that despite capacity for handling goods at ports increasing over the last decade, there has not been any commensurate increase or upgradation in the road network leading to the ports across the country. The operators appealed to the town planners and policy makers for upgradation in the supporting infrastructure around ports and key highways for smoother transit of goods across the country. Potential new buyers of vehicles are likely to increase from 165 million in 2010 to around 507 million by 2020 but there is little action to create enabling infrastructure to support this growth, according to Vice PresidentMaterial Planning & Logistics, Ford India, Balakrishnan Adhi AS. He added that automobile manufacturers, their suppliers as well as other players in the value chain would be required to invest significantly more in enhancing IT capabilities for streamlining of operations. Additionally, top executives in the automobile logistics segment agreed upon the need for much greater usage of rail network in transportation of automobiles and auto components. Ford India currently exports its compact car Figo to 26 countries including South Africa, Nepal, Mauritius and Mexico. The US car major is planning to increase the exports to more than 50 countries in the coming months. The company is currently in the process of putting in place logistics network with capability for tracking and accountability across partners and networks. A cross functional team at Ford India has been created to ensure single point network on Ford and suppliers expectations from logistics service provider on prototype delivery. The network will complete the update of GPDS Schedule A to proactively ensure suppliers have a process in place to ensure timely delivery and track performance in logistics service providers’ performance metrics. After feasibility studies, suppliers could be chosen and ranked based on performance in different slots. Around 70 percent of Ford’s worldwide growth is likely to come from Asia Pacific

and Africa. Ford India is planning to launch eight new products by middle of this decade in India based on 15 core global platforms of Ford. “The key bottlenecks may lie in the multiplicity of regulators as the goods are shifted from ports to rail or road network and vice versa. The idea of Logistics Corporation of India is aimed at countering these issues and smoother f low of goods across multiple transportation mode,” said Director General of Shipping, Ministry of Shipping, Dr SB Agnihotri. He also pointed out that current attitude in the logistics segment among players and regulators alike is one of ‘Rajput’ warriors, who believed

in fighting indiv idua lly rat her than collectively. The participants were unanimous in their demand for upg rading road network and rail connectivity to all major ports for speedier transportation of goods across different modes. Inland waterways was identified as one of the most promising future area for growth and development and issues plaguing this mode of transport was discussed among different stakeholders.

Speakers at the summit

Maruti Suzuki’s shared its experience on its pilot project of transportation of cars from Gujarat to Kerala using inland port to port transport. The

major concern expressed by t he ca r ma ker i ncluded waiting time at the ports and further inland connectivity to the dealers.

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16 - 30 November 2011

STUDY

Margin outlook for Indian I

ndia is currently the fourth largest steel producer in the world, having produced about 68 million tonne of crude steel during CY2010. Crude steel production in the country increased at a CAGR of about 9.8 percent during the last decade (2000-2010), supported by demand from the key consumer segments of construction, capital goods, and automobiles. The Indian steel consumption, which had been growing at double digits before the global crisis, slowed down signiﬁcantly in CY2008 to a rate less than two percent. However, the momentum picked up again in 2009, supported by growth in infrastructure related investments. ICRA however believes that despite this improvement in

margins for Indian steel producers, their proﬁtability could come under renewed pressure in the near to medium term because of several factors. Demand conditions report weakening in the country. Indian steel consumption is expected to witness some moderation going forward, given the continuing slowdown in demand from key consuming sectors. The major steel consuming sectors in India include construction (~65 percent), capital goods (~15 percent), and automobiles (~eight percent). Already, there has been a slowdown in project offtake in India for a variety of reasons, including problems over land acquisition, resettlement and rehabilitation, uncertainty in global economic outlook, and a sharp increase in

interest rates in the country. The prevailing high interest rates are also likely to keep demand growth in the rate-sensitive sectors like automobiles, real estate and housing at moderate levels. Although the growth in GFCF in Q1 FY2012 has been higher than that in the preceding quarter, it remains at a signiﬁcantly lower level compared with the corresponding previous (ie Q1, FY2011). Current weakness in world economy points to likely slowdown in global steel demand too. The developed economies, viz. the EU and the USA, led the recovery process by posting consumption growth rates of around 24 percent and 45 percent respectively, during CY2010. Chinese consumption, which accounts for almost 45

Trends in Indexed Prices of Hot Rolled Coil (HRC), Iron Ore and Coking Coal

Source: Bloomberg, ICRA Research

percent of the global steel consumption, however grew at a much slower rate of around ﬁve percent in CY2010.

China has been the key driving force behind the growth in global steel output over the last decade (2000-2010), accounting for close to 88 percent of the incremental steel production in the world during this period. While world steel production during the decade increased at a CAGR of about fi ve percent, Chinese steel production reported a CAGR of over 17 percent during the same period. Consequently, the Chinese Iron and Steel Authority (CISA) has projected a muted fi ve-six percent growth in steel demand in China over the ongoing 12th five-year plan period (2011-15). All the major domestic steel producers have embarked on capacity addition, a significant portion of which, is expected to be commissioned over the short to medium term. Thus, in ICRA’s estimates, almost 25 million tonnes of new capacity, which is about 30 percent the country’s current production capacity, is expected to be commissioned in the next 18-24 months. The rate of this capacity addition is likely to outpace domestic demand growth in the medium term, given the slowdown in demand growth expected over this period. Thus, the domestic steel industry is likely to face overcapacity in the medium term, which in turn is likely to push up domestic competition as well as exports, making India a net exporter of steel (it is currently a net importer). Further, while around 60 percent of the Indian demand is for long products, a significant majority of the new capacities would produce fl at steel products. Given that long products are likely to maintain a higher consumption pattern in India, driven by the infrastructure and construction sectors, the capacity mismatch is also likely to prompt producers to explore export markets. However, in the absence of the five percent duty protection available in the domestic market, export realisations are likely to be lower. All these factors, along with the higher capital charges for companies commissioning large projects, are likely to affect the margins of steel producers adversely in the near to medium term, especially given the high interest rates prevailing in the country. Crude steel production through the Blast Furnace (BF) route has displayed an increasing trend over the last one decade, with the share of the same in total global steel production rising to around 70 percent from around 60 percent in CY2000. Steel produced through the Electric Arc

16 - 30 November 2011

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STUDY

steelmakers weakens Furnace (EAF) and Induction Furnace (IF) routes account for the balance 30 percent of the global steel production at present. The primary raw materials for the production of crude steel via the BF route are iron ore and metallurgical coke (produced from coking coal). The BF route of steelmaking requires around 0.7 tonne of coking coal and around 1.6 tonne of iron ore for every tonne of BF output. The total ore production in CY2010 stood at around 1.9 billion tonne, of which over 50 percent was traded internationally. China’s share of the sea borne trade of iron doubled from less than 30 percent in CY2003 to almost 60 percent in CY2010 because of the low quality of Chinese domestic iron ore and the inability of the domestic miners to keep pace with the increase in steel production. In CY2010, out of the around 840 million tonnes of coking coal produced globally, over 250 million tonnes were internationa lly traded through the sea route. Australia alone accounted for around 55 percent of the global coking coal exports, most of which went to Japan, China and India. Like iron ore, the international sea borne coking coal trade is quite concentrated, being dominated by five players: BHP Billiton, Anglo American, Xstrata, Rio Tinto (all in Australia) and Teck (Canada). These five accounted for around 55percent of the market in CY2010. Following the recovery in steel production since July 2009, there has been a significant increase in the demand for coking coal from the steel industry, driven by strong import demand from Japan, China, India and Korea. Looking ahead, the demand for coking coal is expected to be driven by the demand mainly from Indian and Chinese steelmakers. Significant capacity addition in the Indian steel industry in the near to medium term is expected to drive up the demand for sea-borne coking coal, since India has been deficit in this. On the supply side, the dispatch from Queensland has improved in recent months. However, a lt houg h new capacities have already been announced by the big coking coal miners in Queensland, the absence of supporting export infrastructure is likely to delay the commissioning of expansion projects in this area. New coking coal capacities are also being developed in Mozambique and Mongolia; but reportedly both these countries at present lack the infrastructure required to support large scale exports. As a result, no major fresh supply of coking coal is expected to enter the world market before CY2013, which in turn would keep coking coal prices at elevated levels relative to historical trends, although some more moderation may be expected once normal supplies from Queensland resume. High raw material costs likely to exert further pressure on margins of Indian steel players Indian steel producers have a raw material price advantage over their Asian peers like those in China, Korea and Japan as far as iron ore is concerned, given the domestic

availability of ore. Domestic iron ore prices are generally lower than prices of internationally traded iron ore. India’s annual iron ore production is over 200 million tonnes, of which 45-50 percent is generally exported. The recent increase in the export duty on iron ore was aimed at improving domestic availability. However, Indian exports largely consist of iron ore ﬁ nes, which currently have limited use in the domestic steel industry. Large steel producers like SAIL, Tata Steel and JSPL have captive iron ore mines, while others procure iron ore from public sector undertakings like NMDC, private miners, and traders. Although Indian iron ore prices are lower than international prices, domestic prices nevertheless

follow the international trend. Thus, in ICRA’s view, the expected buoyancy in international prices would also keep domestic prices at high levels in the near to medium term, thereby adversely impacting the raw material costs of players without captive iron ore mines. In addition, the ongoing restrictions imposed by the supreme court on iron ore mining in Karnataka, and issues related to illegal mining, non-payment of royalty, environmental concerns etc affecting the production in several mines in Goa and Orissa are likely to have an adverse effect on the capacity utilisation levels of several non-integrated steel producers dependent on these sources, at least in the near term. Apart from iron ore, coking coal too is likely to exert pressure on Indian produc-

ers’ raw material costs. Close to 40 percent of India’s total steel output is produced via the BF route, making metallurgical coke (coke) a key raw material for steel production. Indian coking coal reserves are estimated at just 33.4 billion tonnes (that is, about 12.5 percent of the total coal reserves), most of which are of low quality, with a high ash content. Thus, over 70 percent of the total coking coal requirement is currently imported, with imports from Australia accounting for about 80 percent of the total imports. ICRA expects India’s coking coal imports to increase further as some large steel projects get commissioned in the next two years. Consequently, high price levels and the shift to quarterly/monthly pricing contracts internationally are likely to keep

coking coal costs high for Indian consumers, besides increasing the volatility of such costs. In India, around 60 percent of the total crude steel output is produced through the EAF/IF route. The primary charge for the EAF/ IF usually consists of sponge iron (an intermediate product produced by reducing iron ore with non-coking coal), pig iron (output from BF), or a mixture of both and steel scrap. India is the largest producer of sponge iron in the world, accounting for around 38 percent of the world’s entire sponge iron production (as of CY2010). Thus, steel producers using the EAF/IF route are exposed to signiﬁcant margin risks, given their non-coking coal requirements. (Courtesy: ICRA )

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16 - 30 November 2011

CORPORATE

KN Driveline, a global supplier of automotive driveline systems and solutions, has inaugurated its new precision forging facility at its existing plant in Oragadam near Chennai. The new plant is built on 5,000 sq mt to manufacture and supply warm forged precision components to GKN Driveline’s CVJ (Constant Velocity Joint) systems manufacturing plant in Chennai. The plant annually produces 1.2 million side shafts for automotive manufacturers in south India. Earlier the CVJ systems plant in Chennai was opened in 2008 to serve the Indian customers and to meet the ongoing demand in the southern region. GKN Driveline has invested nearly `48 crore in the new forging facility, which will ensure that it’s CVJ systems beneﬁts from GKN Driveline’s proprietary forging technologies. During the inauguration of the new facility, GKN Driveline’s

Asia Pacific, Managing Director, Marc Vuarchex said, “This new facility is our fi rst wholly-owned forging facility in the Asia Pacific region and reinforces our commitment to our India-based customers. Since the early 1980s, we have viewed India as an extremely important market for us. Currently, we operate with 800 people across the country and soon we will be increasing it to four digits.” In the new plant, the entire process is carried according to the flow line concept and operates in 900 degree centigrade, which helps in gaining more strength. It also helps in component heating process and faster turnaround. This supports the customer requirement for advanced technologies and localisation. ‘We are moving from hot forging to warm forging to save raw materials and eliminate many machining processes leading to reduction in the cost of the products. Since this process has greater formability of heated materials, and also ensures better accuracy and dimension control,’

Ravindra Ojha, MD, GKN Driveline India

Warm forged components by GKN Driveline

Bhargav TS Chennai

Photographs: Bhargav TS

GKN Driveline to forge components from its new facility

New warm forging facility

said Managing Director, GKN Driveline India, Ravindra Ojha. GKN Driveline’s product segments include CVJ systems, AWD (All Wheel Drive) systems, transaxle solutions and eDrive systems. Its constant velocity joint systems provide space, weight and fuel savings with greater overall efficiency. Furthermore, it supplies the most extensive range of CVJ systems—used in the smallest ultra-low cost car through to the most sophisticated premium vehicle. The supplier has a full all-wheel drive systems capability. The firm’s all-wheel drive couplings improve the vehicle handling, stability and traction through uniform power distribution technology to reduce drag and inertia for achieving maximum efficiency. The company manufactures open differentials and has extensive range of Limited Slip Differentials (LSD), including elec-

tronically controlled axle locker. Currently, GKN Driveline’s electric drive technology is used in 250,000 vehicles and its eDrives are designed for the new generation fuel efficient, low emission electric and hybrid vehicles. GKN Driveline started its Indian innings in 1986 at Faridabad and has grown to four plants catering to all regions of the country. It is also bringing newer technologies from its global portfolio to the Indian automotive industry to meet the challenges of improved environmental performance, greater efﬁciency, lighter components and enhanced reliability. It has a test facility in Faridabad that develops, builds and supplies an extensive range of automotive driveline systems— for use in ultra low-cost car to premium vehicles. For the past four years, the company is investing `100 crore every

year for enhancing its plants. In addition to this, the company is setting up its manufacturing facility in Pune to cater the ongoing demand in the West Indian market. The plant will be in operation by the end of 2012 and the company has invested `120 crore towards its new plant in Pune to manufacture CVJ systems, AWD systems and trans axle solutions. Ojha added, “Our business in India continues to grow at an annual rate of 15 percent, and this investment helps ensure that we will continue to meet our customers growing demans throughout the region.” GKN is a global engineering business serving mainly in the automotive, aerospace and land system business. It has operations in more than 30 countries, around 40,000 employees in subsidiaries and joint ventures and had sales of `19,100 crore in 2010.

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16 - 30 November 2011

CORPORATE

Capgemini study highlights increased Our Bureau Chennai

apgemini, the technolog y and outsourcing consulta ncy ser v ices recently released its 13th annual global automotive study, Cars Online 11/12. This year’s report reveals increased interest in buying cars online, and a growing demand for new vehicles in mature markets (66 percent, up from 61 percent in 2010). At the same time, however, many consumers indicated they were postponing buying a car until the economy shows more signs of stability. New ownership trends such as car-sharing and technology developments like smart phone apps are also impacting the global automotive industry as the number of channels for researching and buying cars increases, and customers’ expectations and choices continue to rise. The study surveyed over 8,000 consumers in Brazil, China, France, Germany, India, Russia, the UK and US and provides a detailed analysis of CV buying behaviour around the world including shopping patterns, social media usage, online buying, green vehicles, customer interaction, aftersales and servicing. Key findings from this year’s study include the role of the Internet and social media —putting consumers in the driving seat. Consumer internet behaviour, as well as the rise of tablets and smartphones are increasingly impacting the vehicle decision and buying process, with price, guidance and product information continuing to be the primary features con-

sumers research via the Internet. The role of the internet during the vehicle buying process is becoming increasingly important, with fewer people visiting showrooms until very close to the point of purchase. Web usage for both purchasing and research has increased, with the number of consumers researching online reaching 94 percent. This is driven in part by increased use in developing markets. Consumers are increasingly expanding their web usage during the research process to include social media, particularly in developing markets. Among the tools consumers turn to are dealer and manufacturer social media sites, automotive blogs and discussion groups, information/ encyclopedia sites, personal and professional social networking sites, video and photo-sharing sites, and social messaging/microblogging sites. 71 percent of respondents said they would be likely to purchase a vehicle if they found positive comments posted on social media sites. In this year’s study, 42 percent of consumers said they were likely to purchase a vehicle over the Internet, up from 37 percent two years ago. Consumers who are not interested in buying online cite the inability to test drive the vehicle, to receive full product and price information and to see photos/video of the vehicle. These perceived barriers have remained consistent over the past few years, yet they are clearly addressable and should be capitalised upon by dealers and manufacturers with a formal social media and channel management strategy to engage with existing and potential customers.

Dealer or manufacturer social media sites Third-party automotive discussion group/forum

Third-party automotive weblog

Photo sharing sites

Mobile phone applications/advertisements Social messaging/micro-blogging services

Social bookmarking sites

8 7

RSS feeds

18 23 Mature Markets

Developing Markets

1 0%

Consumer interest in green vehicles continues to gradually increase as this year electric

Professional social networking sites

Green Vehicles

Online video site/vide-sharing service

Increasing demand for alternative buying models reﬂects a growing shift from products to services as consumers move from traditional vehicle ownership to “power by the hour.” Nearly 40 percent of respondents would consider alternatives such as vehicle-sharing, up from 35 percent in 2010. The buying cycle continues to shrink leaving dealers with fewer opportunities to interact face-to-face with customers, and the trend for non-traditional approaches to vehicle buying and ownership continues to grow.

Personal social networking sites

Alternative Buying Models

Information/encyclopedia site with user-generated content

Other

None of these

Use of Social Media and Other Online Tools (% saying)

10%

vehicles made it to the mass market for the fi rst time. 44 percent of consumers (up from 41 percent in 2009) said they currently own a fuel-efficient or alternative-fuel vehicle and 39 percent are planning to buy a green vehicle (up from 30 percent in 2009. This is expected to continue as fuel prices fluctuate, environmental awareness rises and governments provide tax credits and other incentives. In this year’s study, 42 percent of respondents expect full-electric vehicles to be a viable sales option (in terms of pricing and availability) within two years, up from 36 percent the prior year. Additional vehicle types identified by respondents include hybrid, biodiesel, hydrogen fuel cell and natural gas. However, price remains the

20%

30%

40%

50%

biggest blocker to sales of alternative-fuel vehicles, followed by battery range, reliability and safety. The lack of charging locations is another concern for consumers considering electric vehicles. The automotive industry needs to develop effective solutions and work with government and other third parties to ensure that the necessary infrastructure is in place to support the move toward e-Mobility.

Customer Loyalty While satisfaction levels grew, brand and dealer loyalty again declined this year. Sixty-one percent of consumers said they were likely to purchase/ lease the same make or brand as their current vehicle, down from 65 percent in 2010 and 68 percent in 2009.

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online demand for new vehicles Similarly, dealer loyalty edged down to 55 percent, compared with 56 percent in 2010 and 63 percent in 2009. Customer loyalty remains strongest in the developing markets, but is declining somewhat from the very high levels seen a few years ago. This is not surprising as the number of brands and dealers grows in the developing markets, providing car buyers with more choices. This is also the case for loyalty to servicing dealers, which is declining in the developing regions as competition increases.

Conclusion This year’s Cars Online report makes it clear that the automotive industry faces critical changes and challenges in the marketplace. Automotive companies must understand how consumer dynamics are evolving and consider the impact these changes may have on their business in the coming years. Following are recommendations to help automotive companies apply the report’s ﬁ ndings to their own business: a) Develop a formal social media management strategy Consumers increasingly rely on and are inﬂuenced by social media during the vehicle buying process as well as the ownership lifecycle. The automotive industry has the opportunity to leverage social media to build brands, generate leads, drive sales, manage customer relationships and retain customers. To capitalise on this opportunity, companies should develop a formal social media management strategy that includes real-time web listening, analysis and customer outreach.

b)Maximise the consumer interactions with integrated end-to-end campaigns As the buying cycle shrinks, dealers have fewer opportunities to interact face-to-face with customers. Yet overall, the possible customer touchpoints have increased due to the growing number of channels and devices used by consumers during the buying process, presenting new and different opportunities for interaction. This development, along with the increasing sophistication and empowerment of customers, is driving a need for businesses to fully integrate marketing campaigns in order to take advantage of all possible touchpoints. c) Experiment with alternative buying and ownership models As consumers show budding interest in new approaches such as mobility packages and vehicle sharing, automotive companies should test the waters. If these new models take hold they could have a significant impact on billing systems, cash flow and fi nancial services. d) Focus on a holistic dealer strategy in developing markets Dealer network development in countries such as China and India needs to focus on a number of elements. Proximity is critical as consumers are unwilling to travel far to buy or service their vehicles. However, it’s not enough just to saturate a market; dealer quality is becoming increasingly important in the developing regions as competition grows and consumers become more demanding. This requires investments in training, systems and processes, and a strong aftersales/servicing programme.

Nick Gill, Global Automotive Sector Leader, Capgemini er. The answer is yes; however, up until now, it has never radically changed. The OEM is still using the dealer as the primary retailer. In social media it is going to be exactly the same. Somehow, as an example, the OEMs will be looking at dealerships in a certain area and they will be working with all the dealer principles. It will help address the demand spread in different pockets of the region. So the social media will be a winwin between the OEMs, dealers and consumers.

T Murrali Chennai

within 50 miles and service outlet within ten miles or so, will be the winner. What’s the scene in India? If the OEMs or the dealers in India think that somehow they can know what the consumer wants, they can succeed. More than sales outlets it is essential to have service points as the sales happen perhaps once in ﬁve years, while the customers need to visit service centres more often. Thus service is critical part of sales. The Indian dealers have to take a longterm view. The interest in Indian market for all of the OEMs is not the size of the market today but tomorrow. Therefore it is necessary to plan for tomorrow.

Your study recommended for developing a formal social media network management due to increasing purchases over internet (37 to 42 percent)—would that affect dealership business? I think social media has not existed in the most peoples’ thinking about ﬁve years ago. Now it is big and important, but people are not really sure on how to use it and leverage it to a position where I think the market has matured. Every time where there is a new channel—like the internet or lead management—there is always a concern whether it will change the status between the OEM, the dealer and the consum-

Dealers say their margins are under pressure due to escalating cost of real estate and operational costs, and this business is losing its charm. However, your study wanted more dealerships to be opened. How do you view this? The dealers work on low margins and are always under severe pressure. The OEMs will try to push as much products as possible to the dealers and dealers try to push the consumers. And the consumers will try to reduce the price. Where does the power sit? In the old world, it generally sat with the manufacturers. In the new world ie in the last ten years, the power sits with the consumer. Those dealers who provide the sales outlets

The aftersales service ranking has moved upwards to 4th position from 7th position last year. What is the reason? Over 50 percent of respondents said that they would buy the next car from the same place that they get their car serviced today. It is because of the good relationships that the service centres maintain with the consumers. As we move on to social media— the fast interaction world—I think there will be more communication between the after sales points and the consumers.

e) Seize the online buying opportunity Despite growing consumer demand for online buying of vehicles, parts and accessories, the capability remains scarce in most markets. When launching an online buying model, automotive companies should

consider the key factors consumers are looking for: price discount, ease and speed of transaction, full price and product details, and the ability to solve the test drive issue. f) Keep “green” on your radar The emergence of electric vehicles and e-Mobility may drive

a wide range of fundamental changes in the automotive industry, and companies will need to develop effective solutions to manage them. The changes are likely to impact areas such as competition, innovation, partnerships, and technology systems and processes.

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CII urges distribution reforms for 24x7 power Our Bureau Chennai

ointing out that high power distribution losses are adversely impacting GDP growth, the Confederation of Indian Industry (CII) has called for urgent reforms to secure 24x7 Power for all. Even as the government continues to be on overdrive to increase power generation capacity, the dismal fi nancial situation of the distribution sector (the cash generating segment of the power value chain) is threatening the viability of the country’s power sector. The losses of State Electricity Boards (SEBs) at over a whopping `100,000 crore as of 2009-10 account for a large proportion of the fi scal deficit and the subsidies budget of the state governments and are thus

increasing the burden of state fi nances. “The Financial loss has been estimated at 1.5 percent of the national GDP. This will act as a major deterrent to private as well as global investments in the sector,” said Director General, CII Chandrajit Banerjee. This in turn is impacting the country’s overall economy. Importantly, with mounting losses, the ability of the SEBs to buy power is curtailed, which leads to load shedding and inability to supply 24x7 power to all customers. Consequently, the government’s aim of “Power for all” is likely to be difficult to attain in the long term. As power has a multiplier effect on the GDP, the lack of growth in power sector may slow down GDP growth. “With the bulk of the additional capacity being fi nanced

on the basis of long term PPAs, the deteriorating financial position of (largely) state controlled utilities is a key concern and the ability of these utilities to fulﬁ l these commitments should indeed be carefully evaluated,” said Chairman, CII Core Group on Distribution Reforms and Smart Grids and Managing Director, New Delhi Power Limited, Sunil Wadhwa. CII has made several suggestions for reforming the distribution sector. One, the condition of discoms can be

improved by increased competition. This can be done through adoption of distribution franchisee route, increasing private competition or public private partnership models. The appropriate model can be adopted by the discoms on a case-tocase basis. Two, implementing ‘open access’ would provide electricity buyers the option to select their source of supply. High–paying industrial / commercial consumers can procure power directly from power generators or another SEB providing cheaper power. This would not only ensure uninterrupted power supply to the consumers, but it would also promote competition amongst SEB’s/generators. While Gurgaon has a serious power shortage, neighbouring Delhi has surplus power. If industrial, commercial and residential complexes in Gurgaon (which are currently resorting to using the more expensive and polluting diesel) are allowed to take the open access route and to purchase power from Delhi, it will be a win-win situation for both the buyer and the seller. While the distribution company will be able to sell its surplus power the consumers will have access to uninterrupted cheaper electricity. Three, Electricity should be placed under the purview of the proposed Goods and Services Tax (GST). This will ensure that input tax credits can be availed which would to a certain extent balance the withdrawal of exemptions and concessions. Exemption from additional customs duty and service tax should be extended to all power projects. Four, timely issuance of cost reflective tariffs, including introduction of Time of Day tariffs, needs to be introduced. In addition, creation of regulatory assets by deferment of cost reflective tariffs needs to be discouraged. According to CII, the key issue that the SEBs are battling with are cost–tariff mismatches. While there have been no substantial tariff revisions in the past five or six years (states like Tamil Nadu raised tariffs after a gap of seven years), the power procurement costs have risen sharply. Most state governments do not raise power tariff because it is a politically sensitive issue. The practice of cross subsidising the agricultural and domestic consumers with other consumer segments such as industries and commercial units has in large part contributed to the deteriorating financial health of the SEBs. For instance, 23 percent of the electricity supplied to the agricultural sector yields less than six percent of the SEB revenues. In addition, aggregate technical and commercial (ATC) losses at a national average of about 28 percent have been described as “unsustainable” by the government and are also contributing to the SEB revenue losses. Combining theft and agricultural subsidy, on an average almost 40 per cent of the power generated has little or no cost recovery imposing burden on the remaining consumers. CII recommends that the above steps should be implemented speedily to ensure the development of more competitive distribution markets.

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Book to commemorate Ennore Port released Our Bureau Chennai

Photograph: Akmal Rahman B

nnore Port has shown timely response to seize the opportunity in Chennai emerging as a major automobile manufacturing hub, to construct car terminal facilities for automobile exports, with an expansive car-parking yard for ten thousand cars, the largest facility in any Indian Port, said Union Minister of Shipping, GK Vasan in a recent function organised by Ennore Port at Chennai to release book entitled ‘A chronicle of Ennore port’. Chairman, Economic Advisory Council to the Prime Minister, Dr C Rangarajan released the ﬁ rst copy of the book, which was received by Union Minister of Shipping, GK Vasan. The volume was brought out by the Ennore

(L-R) Mohandas, Secretary, Shipping, C Rangarajan, Chairman & Prime Minister’s Economic Advisory Council; GK Vasan, Union Minister of Shipping; S Velumani, CMD, Ennore Port & Atulya Misra, Chairman, Port of Chennai

Port to commemorate the completion of ten years of commercial operations of the Port. Secretary (Shipping), K Mohandas was also present on the occasion. Ennore port is one of the 12 major ports in the country. It is the only major corporate port in the

public sector with government of India owing around 67 percent stake. The port commenced its commercial operations in 2001 with dedicated facilities for handling of coal required for the power stations in Tamil Nadu. Over the years, Ennore port has

Innovatus Infinite -

The book seeks to describe the emergence of Ennore port in the context of achieving economy in bulk movement of coal through coastal shipping developed modern facilities for imports and exports of a variety of cargoes including cars. The book seeks to describe the emergence of the port in the context of achieving economy in bulk movement of coal through coastal shipping. The book trac-

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es the history of the port and brings out the engineering effort and innovation in the construction of the port. It also gives an interesting account of its development plans, commercial initiatives and its success as the sole corporate entity. “The book brings out the seeds that germinated into the idea of having a port to serve the coal requirements of coastal power plants of northern Tamil Nadu. The subsequent growth of Ennore Port, which has been propelled by its inherent potential till its present status, has been chronicled very diligently and in great detail in the book. I am sure the reader will ﬁ nd it really interesting to note the various challenges taken up by the port in its journey of growth in the ﬁ rst ten years of its existence,” Vasan added.

Tata Hispano unveils hybrid CNG-electric bus Our Bureau Mumbai

ata Hispano displayed its range of buses, including its advanced CNG electric hybrid bus at the recent International Busworld fair 2011, making this event an exclusive international showcase for the company.

The company unveiled the CNG electric hybrid urban bus, with a new area body design, developed by Tata Motors. The new CNG-electric hybrid technology represents an advanced version of the diesel electric technology model, presented in November 2010, at Madrid exhibition, FIAA. Some of the beneﬁts provided by this CNG diesel hybrid model include electric traction system from Siemens deployed in more than 2,000 buses worldwide, full electrical model, possible for zero emission operation, for short distances, common hybrid drive for diesel-electric and CNG-electric, which can be extended to pure electric, CNG micro turbine and hydrogen fuel cell buses. Although the initial cost of hybrid vehicles is higher compared to conventional buses, the overall cost over the lifetime of the vehicle is lower, due to savings in running costs. It also sports electrically driven auxiliary systems, automatic electric mode, minimal penalty in payload, on account of the advanced high efﬁciency lithium-ion batteries and versatile energy management strategies. Tata Hispano now has two clearly differentiated options for urban transport operators in Europe: diesel-electric Tata Motors chassis and CNGelectric Tata Motors chassis, both developed in collaboration with Siemens.

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Engineering Expo Chennai: The ﬁnal destination Bhargav TS Chennai

amil Nadu continues to be a favoured destination for investments not only for the service sector but also the manufacturing sector due to several factors like availability of abundant talent pool and the infrastructure facilities including sea, air, rail and road network. Inspite of a couple of major investments from the automobile industry going out of Tamil Nadu, the state has yet not lost its sheen. Catalysing growth to the next level is the fourth edition of Engineering Expo Chennai, scheduled from 8-11 December 2011. This edition will further augment the industrial activities that are synonymous to the competitive spirit of Engineering Expo and the state as well.

Japan has identiﬁed Tamil Nadu as one of the most potential states for its investments recently and towards this, the Japanese Ministry of Economy, Trade and Industry (METI) has signed a bilateral economic co-operation agreement with Tamil Nadu. The agreement is a feather in the cap for the state as it has been identiﬁed as a potential investment destination by none other than an industrial giant like Japan. It is estimated that about 240 of the 725 Japanese companies are already in Tamil Nadu and many more investors are looking at the state as an attractive investment destination. Past editions of Engineering Expo has catalysed the growth of manufacturing industries in this part of the country. Wit h t he Eng ineering Expo—organised by Infomedia

A previous edition of Engineering Expo

18—celebrating its tenth year of successful operations this year, primarily by establishing itself as a key enabler in propelling the growth of the manufacturing and service sectors, the Chennai edition of the Expo is shaping up as a conducive platform in amalgamating the capabilities of the state with the speciﬁc needs of the industries.

“The paradigm of engineering expo participation has grown beyond expectations and become the hub for all engineering activities like manufacturing, designing, construction and EPC projects,” stated Abhishek Goel of Electrotherm India. Countries like Korea, Japan and Thailand have evinced interest in investing in the state

particularly close to the major ports. Tamil Nadu has a unique distinction of having three major ports—Chennai, Tuticorin and Ennore. It also boasts of having the fi rst corporatised port—Ennore, in the country. The state government, apart from large industries, is also looking at accelerating growth of Micro, Small and Medium Enterprises (MSME) with additional incentives. Tamil Nadu Small Industries Development Corporation has identified over 2,256 acres in 25 locations to promote industrial clusters for MSME. The government is also revamping land pricing policies to simplify the processes. CEO, Publishing, Infomedia 18, Sandeep Khosla stated, “The last three editions of Engineering Expo has contributed immensely to the engineering and service industries from this part of the country. Besides, it has significantly benefited the small and medium enterprises in spreading their wings as the event provided an ideal platform to connect the buyer and the seller. As we look forward with further value-additions for even better experience and reach to the target audience, we welcome all large, medium & small industries in manufacturing & servicing sector to be a part of the fourth edition of Engineering Expo in this exciting journey. We are sure that the expo will catalyse the business prospects of the manufacturing community significantly.”

The Chennai Advantages With its strong base in MSME, Engineering Expo Chennai offers a unique advantage, as it becomes the eye-opener for not only new opportunities in enhancing the business but also to augment the existing process with cost effective technologies. Though it is a common phenomenon, the MSMEs are the worst affected due to the rising cost of fi nance and volatile raw material prices. There are options for these enterprises to become competitive. And to stay afloat, it is necessary to look for innovative technologies to reduce the cost of manufacturing while satisfying the customers’ specific requirements. In this scenario, the Engineering Expo Chennai gains significance as its helps connect not only the buyer and seller but also the giver and taker of affordable technologies. More than 250 exhibitors from diverse engineering and service industries are expected to participate in the Engineering Expo in Chennai. To be held in Chennai Trade Centre, which is about six km from the Chennai airport, the event will have participants from several industrial segments including machine tools & accessories, hydraulics & pneumatics, instrumentation, light and medium industries, automation, electrical & electronics, material handling equipment and process plant machinery & equipment. The third edition of the Engineering Expo held last March attracted close to 12,000 business visitors generating a business worth of around `34 crore. The exhibition that covered over a total area of 4,400 sq mt saw machinery movement of over 87,000 kg and generated about 5,500 business leads. The forthcoming event is expected to witness significant growth in terms of exhibitors as well as visitors.

Leading by Technology Shriram Pistons & Rings (SPR) is one of the largest integrated manufacturers of Pistons, Pins, Piston Rings and Engine Valves. The Company has access to world-class technology from global leaders at its state-of-the-art manufacturing facilities in the NCR, at Ghaziabad (30 km from Delhi) and Pathredi (50 km from Delhi). This is supplemented with comprehensive design and development facilities including advanced 3D modeling, FEA analysis, Simulation and Diagnostic software, Rig Testing, Engine Testing facilities, Advanced Analysis Laboratory etc. This enables SPR to offer end-to-end solutions and new designs of Pistons, Rings and Engine Valves for improvement in fuel efficiency, lower oil consumption and meeting the latest emission norms. SPR has provided several innovative cost effective solutions to OEMs in India and abroad that have won the Company more recognition and rewards for Excellence in Technology, Quality and Overall Performance than any of its competitors.

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Radial tyre demand is at inﬂection point Revati Kasture Head, Industry Research, CARE Research Vishal Srivastav Deputy Manager, CARE Research

ADIALISATION is yet to make inroads in the T&B tyre category with just 12-13 percent penetration in the total T&B tyre production, as compared to 98 percent in passenger vehicle segment. However, during last three-four years, there has been sudden jump in the demand for T&B radial tyres mainly because of improvement in road infrastructure and strict implementation of ruling given by Supreme Court in 2005 on restricting overloading. In addition to this, ﬂeet operators have also realised the comparative advantage of radial tyres over cross-ply in terms of cost over the life of the tyre, which has boosted the demand for radial tyres in the replacement market. CARE Research estimates that the proportion of radial tyres in T&B tyre production to increase by approximately four times from current levels to around 48-50 percent by FY16.

MAV can save around `1.3 per km The initial price of radial tyres is around 20-25 percent more than cross-ply tyres and it is feasible to retread them only twice as compared to the cross-ply tyres, which can be retreaded three times. However a Multi-Axle Vehicle (MAV) can save around `1.3 per km by switching over to the radial tyres from cross-ply tyres. This is mainly because the running life of a radial tyre is estimated to be around 40 percent more than a cross-ply tyre and it gives higher fuel efficiency because of lower wear and tear and higher resistance levels. CARE Research expects the only hindrance a truck operator has in buying radial tyres is its initial price. However, the manufacturers are aggressively making attempts to educate customers about the benefits of radial tyres in terms of better fuel economy and higher running life that ultimately benefit the truck operators. CARE Research estimates that a truck operator can break even initial cost difference between cross-ply and radial tyres at around 28,000 km of the travel, which means within five-six months of usual operating time.

EBDITA Margins Under Pressure The tyre industry’s top-line is expected to register a healthy growth of 15-16 percent from `24,400 crore in FY11 to around `33,200 crore in FY13, mainly driven by growth in replacement demand. However, EBDITA margins are expected to drop due to rise expected in prices of key raw material. Tyre manufacturers enjoy limited pricing ﬂexibility due to intense competition from domestic players as well as imports, which restrict them to fully pass on the price increase to the customers.

Challenging Time Ahead CARE Research expects the next ﬁve years to be challenging for the industry as it has to encounter change in structural as well as

competitive scenario. For instance, on one hand, the industry manufacturers have to keep pace with the rising demand for radial tyres as well as encounter the increasing competition from the domestic manufacturers as well as imports, whereas, on other hand they have to face margins pressure due to volatility in raw material prices and interest rates. Although healthy demand scenario from replacement market would help in keeping utilization levels at a decent rate, players have to be aggressive in cost cutting and enhancement in productivity in order to minimise the impact of rising operating cost on overall proﬁtability. (The report is prepared by CARE Research, a division of Credit Analysis & Research. Views expressed are personal.)

Projected rise of T&B radial tyre production Units (in mn)

12.0 10.0

CAGR 25%

8.0 6.0 4.0 2.0 0.0

CAGR 36%

FY07

FY11

Source: CARE Research, ATMA and Industry Note: F: Forecasted

FY16F

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16 - 30 November 2011

Global trends in transport routes: Prof Dr rer nat Sabina Jeschke

ransportation of goods is a prerequisite for a prospering economy. The harmonisation of loading units is, however, complicated by framework conditions like different legislative limits for transport equipment (from loading unit size to the size of vehicles for the different transport modes) in different countries and different measurement standards. Thus, discussions on an international loading unit are currently led by the search for a common denominator. This report stimulates debate on the future of transport policy, providing a basis for discussion on how transport and transportation will evolve up until 2030.

The major share of worldwide freight transport is performed by container vessels, followed by road transport. Distance rail and inland waterways follow far behind in signiﬁcance. Air transport plays a minor role, in terms of total km, with a share of less than one percent. With respect to the value of transported goods, air transport is responsible for 40 percent. This means that for particularly high value items that are required rapidly, air transport can be used, whereas large, bulky and relatively inexpensive goods can be conveyed by ship transport. Due to the supremacy of container vessel transport, the international loading unit must essentially be applicable to intermodal transport via road, rail and sea. Thus, the international

Top 20 world ports, 2008 - 2010. Unit: Gross Weight x 1 million metric tons

Source: Port of Rotterdam

loading unit has to be stackable, unloadable and loadable and needs standard interfaces for the different transport modes. When it comes to external dimensions and cargo volume, it is essential that the international loading unit fit to the different dimensions of transport means. Railway wagons have a maximum length of 90 feet and container vessels are equipped with distinct spacing. The interface dimensions of the international loading unit should be compatible with existing ISO containers in terms of corner casting position and dimensions. The exactness of cargo volume is of utmost importance in order to utilise the infrastructure as efficiently as possible. Given this principle, the international loading unit should ‘cube out’ before it ‘weighs out’—ie it should be fi lled up before it becomes too heavy. However, the greater idle weight of the loading unit is also of crucial importance. The greater the idle weight carried by any means of transport, the greater the waste in energy and carrying capacity. Equipment weighing one tonne and carried by sea costs the equivalent of three tonne of equipment carried by road and the equivalent of six tonne by air. The international loading unit should be able to be handled in terminals by the following basic methods—by spreader lifting by top fittings and by grab-lifting appliances (grapplers). Accordingly, an international loading unit has to be equipped with top and bottom corner and intermediate fittings. During transportation on railway wagons for intermodal transport as well as by road transport chassis, the international loading unit must be also equipped with bottom corner fittings. It should have three open-able sides for loading/ unloading to assure flexibility and loading efficiency. Robust and lockable side walls are required and the sides must be closed to avoid theft, and must be sealable to be TIR certifiable. It should be possible to verify that a container has not been opened during a check by the responsible departments. An integrated tie down eases the stabilisation of the container when it is being secured. In addition, the requirements of EN 12642—securing of cargo on road vehicles, body structure of commercial vehicles, minimum requirements—have to be fulfilled.

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Future of international loading units Comparison of technical parameters of established international loading units

transport by the industry. Rail freight transport would beneﬁt from longer trains, and in Europe recent research projects are analysing the maximum length of trains with respect to the infrastructure. In road transportation, longer and heavier trucks are the object of heated discussions.

Conclusion

Efficient Loading Units At present, there is no international loading unit in the market, which meets all demands. The relatively new pallet-wide container is the closest solution on the market with an extended external width of 2.5 metres. To overcome the absence of such a new international loading unit, the European Commission granted the TelliBox—Intelligent MegaSwapBoxes project for Advanced Intermodal Freight Transport under its seventh research framework programme. The project was launched due to the increasing demands from politics and society to counteract the trend towards increasing freight transport on roads. The TelliBox project aims to improve the efficiency of intermodal freight transport f low across Europe and Russia. The aims and contributions of freight forwarders, shippers, rolling stock manufacturers and scientists have been taken into account by the consortium in developing a new intermodal loading unit. The TelliBox project has focused on the development of a 45-foot intermodal transport unit, applicable to transport by road, rail, inland and short sea shipping. Additionally, it has to meet special requirements like stack-ability, applicable for handling from the top, optimised cargo volume of 100m3 with an internal height of 3m and completely open-able doors on three sides. At the same time, improved safety features against theft have to be ensured. After a successful certiﬁcation for the application to freight transport, the MegaSwapBox was also successfully tested on an over 5,000 km long trimodal demonstration circuit. Within two demonstration phases, the MegaSwapBox and its chassis covered typical routes on which goods of the automotive industry are presently transported. Currently, these transports can only be made on road, inland and short-sea shipping without exchanging the carrier. The project ended in March 2011. At the moment, the involved partners are working on a market introduction of the MegaSwapBox to ensure a sustainable utilisation of the project results. One technical issue to overcome in the future is the need for better stackability. At the moment, the TelliBox is not appropriate for overseas transport as it is only two times stackable. This is enough for inland waterway barges across Europe and the short sea transport but not for bigger vessels. In addition, despite all the advantages of the TelliBox, it has the disadvantages of, at the moment, being more expensive to manufacture and of having a higher tare weight. Thus, its use is somewhat a trade-off when

compared to the use of standard loading containers.

Larger Means Of Transport Increasing the size of the transportation means is one approach that can be used to help move larger quantities of goods. The concepts regarding

larger means of transport include the following examples: Longer and heavier trucks (eg Krone Gigaliner); longer freight trains (eg GZ 1000) and larger freight vessels (eg.Maersk Line Triple-E class container vessels). A new class of container vessel is being developed for overseas

Several solutions for future international loading units are on their way. The transport initiative of the European Commission is for a single European transport area with harmonised (and adapted) legislation. This legislation on weights and dimensions of road freight transport will beneﬁt transport development. It is, however, impossible to provide and recommend a single oneﬁts-all international loading unit

which covers all requirements, as the transport sector is highly fragmented and consists of innumerable businesses moving goods widely varying in size and weight. The market introduction of the 45 ft palletwide container provides a feasible approach to overcoming these challenges. The routes on which goods will be transported, however, will focus more on the emerging markets. The BRICS states that Brazil, Russia, India, China and South-Africa in particular will become increasingly dominant. Europe’s relative importance will shrink in global transportation in the future. (Source: ‘Global Trends in Transport Routes and Goods Transport’, ACEA Scientific Advisory Group, June 2011. Reprinted with permission.)

Auto Monitor

16 - 30 November 2011

EVENT

Ninth parts2clean expo breaks visitors’ record

ompanies around the world are increasingly focusing on industrial cleaning technology. This is substantiated by visitor numbers, which rose by roughly 18 percent at the 9th parts2clean at the Stuttgart Exhibition Centre held from the 25-27 October, 2011. A cheerful mood was assured for the 237 exhibitors at the leading trade fair for industrial parts and surface cleaning, as well as prospective orders brought along by the expert visitors from 49 countries. With 4,779 visitors (an increase of 18.1 percent as compared with last year), the 9th parts2clean set an all-time record for visitor numbers at the international trade fair. Expert visitors journeyed to the event from 49 countries on all ﬁve continents. Around 18.4 percent of the visitors came from outside of Germany. With 237 exhibitors,

Glimpse of a previous edition of the expo

A visitor at one of the displays

this year’s leading international trade fair for industrial parts and surface cleaning experienced an increase of roughly seven percent. The exhibiting companies from 15 countries presented products and services covering the entire process sequence on

65,000 square feet of net exhibition ﬂoorspace (160,000 sq ft of overall ﬂoor space/ 4.5percent growth).

Technical Discussions & Concrete Projects The event organised by fair-

Xperts GmbH was not only distinguished by quantity, but rather by quality as well. Exhibitors were thus able to profit from the outstanding expertise and decision making authority demonstrated by the visitors. An estimated 88.2 percent of the vis-

itors are involved with company decision making processes. “parts2clean is now well established and is becoming more and more international. In addition to visitors from the German speaking countries, we also had visitors from Hungary, Poland, England, Brazil, Turkey and Singapore at our booth, and they brought along concrete problems that have to be solved. parts2clean has gone very well for us this time too, and we’ll exhibit again in 2012 in any case”, reported Director, cleaning technology business division, Elma, Hans Schmidbauer, Karl-Heinz Schoch, Nearly all of the exhibitors arrived at similar conclusions. For example, Global Area Sales Manager, Dürr Ecoclean, Dr Uwe Anton Schubert, was also very satisfied with the way things went at parts2clean. Anton stated, “On the one hand, we took advantage of our trade fair presentation to introduce new products and to exhibit our broad ranging product portfolio. On the other hand, we set ourselves the goal of refreshing business relations with existing customers and establishing contact with new companies, and we succeeded in both areas in a wellbalanced fashion.” A further aspect was also important for Export Manager of Turkey based Everest Elektromekanik Hakan Gülecyüz, “We see all of our competitors here, and that’s a very good thing.” Daniel Fisch from the marketing department at Reinhausen Plasma GmbH, who participated at parts2clean for the fi rst time this year, also drew a positive conclusion: “We had visitors at our booth from the optics and automotive industries, machinery manufacturing and other sectors with concrete micro-cleaning requirements, and in some cases they even brought their workpieces along with them. We were able to provide visitors with information about cleaning solutions with plasma at atmospheric pressure and fielded lots of RFQs. We’re glad we exhibited at parts2clean.” Project Manager, Sales and Marketing at the Danish company DST KEMI, Vivi Yde Laursen, enthusiastically said, “It was a great trade fair for us, and we picked up significantly more and better leads than we did last year. We also received orders from customers who bought a cleaning system, and want to fi ll it with our cleaning agents after it arrives.” Market manager for US cleaning agent manufacturers Petroferm, Bill Breault, also achieved all of the goals he had set for himself in Stuttgart: “We were able to establish excellent contacts with users, got to know some potential sales partners and intensified our relations with cleaning equipment manufacturers.”

Auto Monitor

16 - 30 November 2011

CORPORATE

Achates achieves higher fuel efﬁciency benchmark Our Bureau Chennai

When compared to the published data of one of the best clean diesel engines in the world, Achates Power engine demonstrates 20 percent lower cycle average brake-specific fuel consumption and reduced cost, weight and complexity

chates Power recently a n nou nced it s highest engine efficiency test results demonstrating around 20 percent improvement in fuel economy compared to a four stroke diesel engine. This performance represents a seven percent gain since September 2010. The company has demonstrated newly increased engine fuel efficiency results in every quarter of 2011, beginning with a 13 percent efficiency advantage presented at the Symposium on International Automotive Technology (SIAT) in January, a 15.5 percent efficiency advantage in June and a 19 percent efficiency advantage presented at the SAE Commercial Vehicle

David Johnson, President & CEO, Achates Power

Engineering Congress (ComVEC) in September. Brake thermal efficiency of 45.1 percent has also been dem-

onstrated at the best engine operating point with an overall calibration that meets the stringent US EPA 2010 emis-

sions standard. As confirmed by dynamometer testing, the Achates Power opposed-piston architecture w ith the twostroke cycle has improved brake thermal efficiency resulting from a combination of the following four effects—reduced heat transfer due to the more favourable combustion chamber area/volume ratio of the opposed-piston architecture, increased ratio of specific heats due to the leaner operating conditions of the two-stroke cycle, decreased combustion duration achievable within maximum pressure rise rate limits due to the more rapid expansion of the in-cylinder volume-percrank degree angle and reduced pumping work as only a portion of the residual gases in the cylinder need to be scavenged at each cycle.

The thermodynamic rationale for these results is documented in the SAE International Paper 2011-01-2216, presented at SAE ComVEC, 2011. The most recent 20 percent fuel efficiency improvement is from ongoing enhancements, including the latest hardware upgrades and calibration improvements and more than 2,500 hours of testing at the company’s San Diego facility. When compared to the published performance data of one of the best medium-duty clean diesel engines in the world, the Achates Power engine demonstrates 20 percent lower cycle average brake-specific fuel consumption, similar engine-out emissions levels, less than 0.1 percent fuel-specific oil consumption and reduced cost, weight and complexity. The Distinguished Member of the Technical Staff at Sandia National Laboratories and co-chair of SAE powertrain activities, Dr Paul Miles (PhD, Cornell), applauds the methods Achates Power employs to determine engine performance, fuel consumption and emissions characteristics. “The single-cylinder results are then carefully extrapolated to expected multi-cylinder results using a rigorous interface model. These are real-world numbers. The fuel economy and emissions it reports are a testimony to the effectiveness of the fundamental research and development work I have seen at its San Diego facility”, he said. “Through the application of rigorous science and engineering methods, Achates Power has overcome historical two-stroke engine challenges,” said Dr David Foster (PhD, MIT), a professor of mechanical engineering at the University of Wisconsin-Madison, an Achates Power technical advisory board (TAB) member, and an expert in the field of internal combustion and fluid dynamics. “ The company has built laborator y facilities utilising leading-edge testing, simulation and analysis tools, developed more than 1,000 patentable innovations, demonstrated the superior performance of its engines and garnered the attention of top manufacturers around the world. The company has a highly-regarded TAB that includes National Academy of Engineering members and SAE Fellows with more than 200 years of combined experience. The company is backed by Sequoia Capital Partners, RockPort Capital Partners, Madrone Capital Partners, InterWest Partners and Triangle Peak Partners. It was founded by Dr James Lemke with investment from the late John Walton, son of Sam Walton, the founder of WalMart. It has developed radically improved internal combustion engines that increase fuel efficiency, reduce greenhouse gas emissions and are lower cost. Founded in 2004—by serial entrepreneur and physicist Dr James Lemke who has more than 100 patents—with the mission to build fundamentally better engines, the San Diego-based company has more than 40 inhouse engineers and scientists with proven technical know-how and expertise, coupled with the industry’s leading-edge testing, simulation and analysis tools.

Auto Monitor

GLOBAL WATCH TECHNOLOGY

16 - 30 November 2011

Daimler notches robust performance in third quarter

aimler’s third quarter group earnings amounted to Euros1,968 million (Q3 2010: Euros 2,418 million). Adjusted for special factors, earnings before interest and tax from the ongoing business was higher at Euros 2,110 million than in the prior-year period (Q3 2010: Euros 2,022 million). The development of earnings in the third quarter of 2011 primarily reﬂects the higher vehicle shipments by all divisions. EBIT at Mercedes-Benz Cars was impacted by changes in the product mix and by charges due to the upcoming model changes. All other divisions posted higher earnings than in the prioryear period. Net proﬁt for the third quarter of 2011 includes charges from the impairment of Daimler’s investments in Renault and Kamaz of

Euros110 million and Euros 23 million respectively. The investments had to be impaired to their fair values due to the sharp fall in both companies’ share prices. In the third quarter of 2011, Daimler sold 525,500 cars and commercial vehicles worldwide, surpassing the ﬁgure for the prior-year period by 11 percent. Group revenue increased significantly by ﬁve percent to Euros 26.4 billion (Q3 2010: Euros 25.1 billion). Adjusted for exchangerate effects, the increase was eight percent. The net liquidity of the industrial business amounted to Euros10.4 billion at 30 September, 2011 (31 December, 2010: Euros11.9 billion). At the end of the third quarter, Daimler employed 269,887 people worldwide. Of that total, 167,948 were employed in Germany. Mercedes-Benz Cars

continued its positive business development and achieved a new record for unit sales in a third quarter of 337,200 vehicles (Q3 2010: 317,500). The div ision’s revenue increased to Euros13.8 billion. The division achieved EBIT of Euros1,108 million, despite a large number of factors with a negative impact on earnings (Q3 2010: Euros1,299 million). The division’s return on sales was 8 percent. Record unit sales in the third quarter were offset in particular by changes in the product mix, as well as by the impact of higher material costs, exchangerate movements, upcoming model changes and increased research and development expenses. The high quality of the products led to lower warranty expenses. Daimler Trucks also continued its successful business develop-

ment and increased its unit sales by 22 percent compared with the third quarter of last year to sell 115,600 vehicles. The division’s revenue grew to Euros7.6 billion (Q3 2010: Euros6.4 billion). Daimler Trucks’ EBIT amounted to Euros555 million and its return on sales was 7.3percent (Q3 2010: Euros496 million and 7.7 percent). The positive development of earnings is primarily due to substantial growth in unit sales compared with the prior-year period. Sales growth was particularly strong in the NAFTA region, Europe and Latin America. There were opposing, negative effects on third-quarter earnings from increased material costs, high advance expenditure for the current product offensive and the impairment of the equity interest in Kamaz.

Me r c e d e s -B e n z Va n s increased its unit sales by 18 percent to 63,500 vehicles (Q3 2010: 53,700). Revenue of Euros2.2 billion was also significantly higher than in the third quarter of last year. The division achieved thirdquarter EBIT of Euros200 million (Q3 2010: Euros122 million). Its return on sales improved to 9 percent, compared with 6.4 percent in the prior-year period. The main drivers of the positive earnings trend were the ongoing market recovery and significantly higher unit sales, especially in Germany and the United States. The excellent market reaction to the new generations of the Vito and Viano also made a significant contribution. Daimler Buses increased its unit sales to 9,200 complete buses and chassis (Q3 2010: 9,100), mainly because of the positive development of chassis sales. Revenue of Euros1,041 million was also higher than in the prior-year period (Q3 2010: Euros1,007 million). The division achieved EBIT of Euros25 million (Q3 2010: Euros11 million). Daimler Financial Services’ contract volume in the sales-financing and leasing business amounted to Euros 65.8 billion at the end of the third quarter, which is three percent higher than at the end of 2010. With EBIT of Euros 337 million in the third quarter of 2011, the division surpassed its earnings of Euros 317 million in the prioryear period. The improvement in earnings was mainly caused by lower provisions for risks and an increased contract volume. There were opposing, negative effects on earnings from higher expenses in connection with the repositioning of business activities in Germany. In view of the continuation of generally good market prospects combined with numerous model changes and new products, Mercedes-Benz Cars assumes that the Mercedes-Benz brand will further increase its unit sales to a new record in 2011. On the engines side, Mercedes-Benz Cars is introducing its particularly fuel-efficient four, six and eight-cylinder engines and the eco-start-stop technology in additional models. With the new generation of the C-Class, for example, the C 220 CDI is available with fuel consumption of just 4.4 litres per 100 kilometres and CO2 emissions of 117 gram per km. The so-called RIC markets (Russia, India and China) are growing dynamically and Daimler Trucks is expanding its production capacities accordingly: In India, BharatBenz will open its truck plant in April 2012; in Russia, Daimler Trucks is broadening its cooperation with Kamaz; and in China, Beijing Foton Daimler Automotive has obtained fi nal approval from the authorities for the joint venture between Daimler and Foton. Daimler Buses assumes it will sell more than 40,000 complete buses and bus chassis in the year 2011. There will be a structural shift from complete buses towards bus chassis. Daimler Financial Services anticipates growth in its worldwide new business in full-year 2011. After adjusting for exchange-rate effects, contract volume should increase again in the fourth quarter. The division expects a decrease in worldwide credit-risk costs in the full year.

16 - 30 November 2011

GLOBAL WATCH

Auto Monitor

Bosch develops solution for agri equipment emissions

Auto sector jobs account for much of October growth

osch Emission Systems exhibited solutions tailored specifically to the requirements of the agricultural sector at Agritechnica, the world’s largest trade fair for agricultural technology. The focus is on systems to reduce nitrogen oxides and particulate matter— systems that are not only highly efficient but are also especially compact and make optimum use of the limited available installation space. Set up by Bosch, Deutz and Eberspacher in April 2010, Bosch Emission Systems has been consistently expanding its portfolio of exhaust gas treatment systems. Using a modular kit means that a complete systems solution for effective exhaust-gas treatment can be integrated quickly and simply. “We are exploiting our core competencies in the areas of exhaust gas technology to prepare forklifts, mobile machinery such as construction vehicles, tractors, and other agricultural machinery, as well as stationary machinery for stricter emissions standards in a cost-effective manner,” said Managing Director, Bosch Emission Systems, Wolfgang Albrecht. “The system can also be used in on-road applications such as buses and municipal vehicles.” The nitrogen oxides of diesel engines are reduced via a Denoxtronic system, which injects the reducing agent AdBlue into the exhaust gas flow. Precise metering ensures that there is always exactly the right amount of agent for the operating values of the engine and SCR catalyst. A major new development is a spiral-shaped mixing section, which enables the optimum mixture of the AdBlue. This makes it possible to reduce nitrogen oxides by up to 95 percent. At the same time, fuel consumption, and in turn CO2 emissions can be reduced by up to five percent. As a result of nitrogen oxide treatment in the exhaust tract, the combustion process can be optimised with regard to fuel efficiency. For large engines, Bosch Emission Systems has further developed the Bosch Denoxtronic system. By combining the supply and dosing modules, as well as adapting the metering system, larger volumes of reduction agent can be precisely dosed. The system as a whole is governed by a central exhaust gas control unit. Bosch Emission Systems also supplies all the required sensors, as well as harnessing for CAN buses and the AdBlue tank. Headquartered in Stuttgart, Bosch Emission Systems offers a full range of products and services—from system design to complete application. This is a huge benefit especially for manufacturers of small series. The components are produced at the new Bosch Emission Systems main plant in Neunkirchen, Germany. In the second half of 2012, a US subsidiary in Kentwood, Michigan will open a second production site. The Bosch Group is a leading global supplier of technology and services in the areas of automotive and industrial technology, consumer goods, and building technology. Some 285,000 associates generated sales of Euro 47.3 billion in fi scal 2010. For

An exhaust system

2011, the company forecasts sales of more than Euro 50 billion and a headcount of 300,000 by the end of the year.

The Bosch Group comprises Robert Bosch and its more than 350 subsidiaries and regional companies in over 60 countries.

he auto sector accounted for 12,500 new jobs in October—as it remains a bright spot in the struggling economy. Over the last 12 months, the auto and parts industry has accounted for 75,000 new jobs. The Labour Department’s Bureau of Labour Statistics reported that the nation added 80,000 new jobs in October and the unemployment rate fell to nine percent from 9.1 percent. Auto dealers added 3,900 jobs to 1.049 million; auto parts dealers added 2,400 to 637,800. Automakers and parts manufacturers added 6,200 to 710,400 jobs. Over the past year, auto dealers have added 33,000 jobs, while auto parts dealers have added 12,000 jobs. Auto and parts manufacturers have added

30,000 new jobs. However, the growth comes after a severe decline in the sector, with hundreds of plants closed nationwide and tens of thousands of workers laid off as GM and Chrysler underwent bankruptcy restructuring and many suppliers ﬁ led for bankruptcy. The sector is down dramatically over the past four years, as automakers cut production, ended brands—such as Mercury, Hummer, Saturn and Pontiac — and closed dealers. In October 2007, auto dealers employed 1.25 million people— or 200,000 more than today. Auto parts dealers employed 660,000 people—or 22,000 more than today. Automakers and parts makers employed 990,000 people in October 2007 — 280,000 more than today.

Auto Monitor

GLOBAL WATCH

16 - 30 November 2011

International auto round-up EU raids SKF, Schaeffler in antitrust probe European Union regulators raided Sweden’s SKF and Germany’s Schaeffler as part of a probe into possible anti-competitive activity among makers of ball bearings. Regulators in the US, Europe and Japan have been investigating price-fi xing in the global automotive supply chain for several months. The raids were the fi rst known probes in the ball-bearing segment. It was not immediately clear if the investigation was limited to Europe. “The Commission has concerns that the companies concerned may have violated EU antitrust rules that prohibit cartels and restrictive business practices,” the Brussels-based Commission said. The US Justice Department

announced a plea deal with wire harness manufacturer Furukawa Electric that included a $200 million ﬁ ne plus jail terms for three company executives. Other wire harness manufacturers, along with safety products suppliers, have been under investigation. The European Commission, the EU executive body that oversees competition policy in the bloc, did not identify the companies it raided. Germany’s Schaefﬂer said it had been subjected to a search and that it was cooperating with authorities, but declined to comment further. Swedish rival SKF said it too was cooperating with authorities. “SKF has a strict code of conduct which prohibits anticompetitive behaviours and is cooperating fully with the inves-

tigation,” the Swedish company said in a statement. “At this time, no further information is available regarding the nature or outcome of this inquiry.” SKF said Commission representatives had visited its facilities in Gothenburg, Sweden, and Schweinfurt, Germany, to gather information. The Swedish company, whose bearings are used in products from aircraft to hairdryers, said in October it expected lower demand ahead as debt problems in Europe and a sluggish the US recovery cast a shadow over global economic prospects.

Mitsubishi readies global small car, plug-in hybrid Mitsubishi is likely to unveil a close-to-market version of a

plug-in hybrid crossover due next year and its new global small car at upcoming Tokyo Motor Show. The PX-MiEV II hints strongly at the hybrid version of the Outlander crossover that Mitsubishi plans to launch in the ﬁ scal year ending March, 2013. That vehicle is the next step in the transformation of Mitsubishi’s line-up with an assortment of electriﬁed drivetrains. The PX-MiEV II is a two-motor plug-in hybrid system running on a lithium ion battery and a two-litre, four-cylinder gasoline engine. One motor powers the front wheels, the other the rear ones. Mitsubishi is targeting fuel economy of 60 kmpl (140 mpg) under Japan’s testing cycle, which is not comparable to the US or European fuel-

economy measures, and says the vehicle can cruise 31 miles in electric-only mode. Another feature of the drivetrain is that it can operate in either series or parallel hybrid mode. At lower speeds or when the battery is low, it can work as a series with the engine acting as a generator to recharge the battery, but not to power the wheels. At higher speeds or when the battery is topped up, it acts as a parallel hybrid, with the engine recharging the battery and moving the wheels. Under the ﬂoorboards is a lithium ion battery with about the same capacity as the electric vehicle that goes on sale in the United States this month. However, because the PX-MiEV II is heavier and equipped with all-wheel drive, it doesn’t achieve the i’s electric-only driving distance. The Mitsubishi i has an EPArated driving range of 62 miles on a full charge. The global small car enters production in Thailand next year and is bound for the US as early as 2013. Mitsubishi has christened it the Mirage, reviving a subcompact nameplate that was dropped in the early 2000s. The hatchback replaces the Colt, which is being phased out. Mitsubishi is shooting for fuel economy of 70 mpg and a sticker price around one million yen ($12,800). The Mirage relies on an improved engine with idle-stop technolog y, weight loss and better aerodynamics to boost its fuel economy. It is 10 percent lighter than the Colt. It is powered by a one-liter three-cylinder engine mated to a continuously variable transmission. Mitsubishi plans to start manufacturing the Mirage at a new factory in Thailand in March. But the massive ﬂooding in that country may push back the start of production.

Honda to keep North American production cuts Honda is likely to extend North American production cuts through November in the aftermath of parts shortages from massive f looding in Thailand. However, the company said it would not delay the launch of its new 2012 Honda CR-V crossover set for next month. The company said it was cutting North American output by 50 percent through November. Honda said auto production rates will vary at its six North America plants and some will be above 50 percent. Honda said a few critical electronic parts are sourced f rom Tha i la nd a nd ot her regions of the world, which is causing the production cuts, the company said. The carmaker, which made more than 170,000 cars in Thailand last year, was still recovering from the impact of the March Japan quake and tsunami when the latest disaster occurred. Heavy rains have overwhelmed 10,000 factories in Thailand, f looding more than 80 percent of its 77 provinces since July. Toyota has said production was disrupted in Thailand, Indonesia, Vietnam, the Philippines, Japan and the US after f loods interrupted the supply of components. Nissan temporarily closed its Thai factory because of a parts shortage.

Auto Monitor

ADVERTISERS’ LIST CORPORATE

16-30 November 2011

Pg No. ........Advertiser ...................................................................................Tel ..................................................E-mail ...................................................................... Website 40 ..............ADEA Awards ..............................................................................+91-22-30034650 ..........................prachi.mutha@infomedia18.in ............................... www.adea.in 11 ...............Anand Automotive Ltd................................................................+91-11-26564542 ...........................arpita.bhatia@anandgroupindia.com..................... www.anandgroupindia.com 10...............Ashfa Corporation ......................................................................+91-22-25107461 ...........................ashfa91@hotmail.com ............................................ www.ashfacorp.com 4 ................Assab Sripad Steels Ltd ...............................................................+91-44 24951980...........................chennai@assabsripad.com...................................... www.assabsripad.com 9 ................Bharat Petroleum Corporation Ltd. 8 ................Brassoforge.................................................................................+91-129-2472701 ...........................dheeraj@brassoforge.com ...................................... www.brassoforge.com 50 ..............Confederation Of Indian Industry ..............................................+91-124-4013871........................... rachna.jindal@cii.in .............................................. www.autoexpo.in 17...............Dynabrade India Abrasive Power Tools Pvt Ltd..........................+91-22-27632226 .........................customerservice.india@dynabrade.com ................ www.sata.com/H20 12...............Dynascan Inspection Systems Co ................................................+91-80-41102747...........................dynascan@vsnl.com ................................................ www.dynascan.info 18...............Eastman Cast & Forge Ltd...........................................................+91-161-6608000 ..........................ecﬂ@eastmanhandtools.com 47...............Ecocat India Pvt Ltd....................................................................+91-129-4266500 ..........................alok@ecocatindia.com ............................................ www.ecocat.com 27 ..............Elantas Beck India Pvt Ltd ..........................................................+91-20-30210600 ..........................sanjay.patil@altana.com ......................................... www.elantas.com 41...............Electronica Hitech Machines Pvt Ltd ..........................................+91-20-30435400 ..........................marketing@electronicahitech.com ......................... www.electronicahitech.com 52 ..............Enginerring Expo ........................................................................+91-9819552270............................engexpo@infomedia18.in ....................................... www.engg-expo.com 46,48..........Federation Of Automobile Dealers Associations ........................+91-11-23320095 ...........................fada@airtelmail.in .................................................. www.fadaweb.com 29 ..............Ferromatik Milacron India Pvt Ltd .............................................+91-79-25890081 ..........................salesfmi@milacron.com .......................................... www.milacronindia.com 28 ..............G W Precision Tools India Pvt Ltd ...............................................+91-80-40431252 ..........................info@gwindia.in ...................................................... www.gwindia.in BIC .............Guhring India Private Limited ....................................................+91-80-40322500..........................info@guhring.in ..................................................... www.guhring.in 34 ..............Indian Machine Tool Manufacturers’ Association ......................+91-80-66246600..........................imtma@imtma.in .................................................... www.imtma.in 36 ..............Indian Machine Tool Manufacturers’ Association ......................+91-80-66246655 ..........................rohith@imtma.in .................................................... 38 ..............Indian Machine Tool Manufacturers’ Association .............................................................................................................................................................. www.imtex.in 20 ..............Involute Automation (P) Ltd .......................................................+91-40-23090022 ..........................response@involuteautomation.com ....................... www.involuteautomation.com/ 25 ..............ISMT Limited...............................................................................+91-20-66024901 ..........................sachin.joshi@ismt.co.in........................................... www.ismt.com 43...............Jyoti CNC Automation Pvt. Ltd. ...................................................+91-2827-287081 ..........................info@jyoti.co.in ....................................................... www.jyoti.co.in 2 ................Kamal Envirotech Pvt Ltd ...........................................................+91-9650600413 ...........................enquiry@kamalcedsolution.com ............................ www.kamalenvirotechgroup.com 49...............Larsen & Toubro Limited ............................................................+91-9967800456 ...........................SM.Haridas@larsentoubro.com ............................... www.larsentoubro.com 3 ................M And M Auto Indus Ltd .............................................................+91-124-4763200...........................corporate@mandmsprings.com.............................. www.mandmsprings.com 21...............Makino India Private Limited .....................................................+91-80-28419500 ..........................slim@makino.co.in.................................................. www.makino.com 32-33 ..........Meiban Engineering Technologies Pvt Ltd. ................................+91-80-26860600 ..........................sales-turning@meibanengg.com ............................ www.meibanengg.com 31...............Metro Tyres Ltd. ..........................................................................+91-120-4147414 ...........................info@metrogroup.co.in ........................................... www.metrogroup.co.in 1 ................Micromatic Grinding Technologies Ltd. ......................................+91-120-2712137 ...........................info@micromaticgrinding.com ............................... www.micromaticgrinding.com BC ..............Micromatic Machine Tools..........................................................+91-80-41492285 ..........................mmtblr@acemicromatic.com ................................. www.acemicromatic.com 10...............Mipox..........................................................................................+91-80-65830898..........................rag-rao@mipox.co.jp............................................... www.mipoxindia.com 37...............Misumi India Pvt Ltd ..................................................................+91-20-66470000 ..........................sales@misumi.co.in ................................................. http://in.misumi-ec.com 51...............MMC Hardmetal India Pvt Ltd ....................................................+91-80-23516083 ..........................mmcindia@mmc.co.jp ............................................ www.mitsubishicarbide.com 6 ................Napino Auto & Electronics Ltd. ..................................................+91-124-2290050 ..........................info@napino.com .................................................... www.napino.com 13...............Oetiker India Pvt Ltd ..................................................................+91-2192-250107 ...........................akeswani@oetiker.com ........................................... www.oetiker.com 45...............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 12...............Precision Components Corporation ...........................................+91-40-65229339 ..........................info@dynatherm.in ................................................. www.dynatherm.in 53 ..............Presto Stantest Pvt Ltd ...............................................................+91-129-4272727 ..........................presto@vsnl.com ..................................................... www.prestogroup.com 7 ................Safexpress Private Limited .........................................................+1800-113-113 ...............................suyash.srivastava@safexpress.com ......................... www.safexpress.com 30 ..............Shri Ram Polytech ......................................................................+91-11-23316801 ...........................info@shrirampolytech.com .................................... www.shrirampolytech.com 39...............Shriram Pistons & Rings Ltd .......................................................+91-11-23315941 ...........................aarti.anandan@shrirampistons.com 8 ................Sreelakshmi Traders ...................................................................+91-44-24343343 ..........................sreelakshmitraders@gmail.com.............................. www.sreelakshmitraders.com 55...............Starragheckert Machine Tools Pvt. Ltd. ......................................+91-80-42770600..........................sales.in@starragheckert.com .................................. www.starragheckert.com 57 ..............Sumitron Exports Pvt Ltd. ..........................................................+91-11-41410631 ...........................sumitron@vsnl.com ................................................ www.sumitron.com 44 ..............Techno Spring Industries ............................................................+91-129-4024488 ..........................vikastantia@technospringindia.com....................... www.technospringindia.com 15...............The Indian Electric Co.................................................................+91-20-24475845 ..........................iecmktg@indianelectric.com .................................. www.indianelectric.com 35...............Ultima Media Ltd. ............................................................................................................................................................................................................... www.amsconferences.com/india 22 ..............Unitech Exhibitions ....................................................................+91-44-24543322 ..........................info@unitechexpo.com ........................................... www.unitechexhibitions.com 19...............Varroc Engineering Pvt Ltd .........................................................+91-240-2556227 ..........................varroc.info@varrocgroup.com ................................ www.varrocgroup.com 26...............Wagner .......................................................................................+91-124-4121626 ...........................imtiaz.ahmed@wagner-group.com......................... www.wagner-group.com 23 ..............Yamazaki Mazak India Pvt Ltd ...................................................+91-2137-668800 ..........................sudhir_patankar@mazakindia.com ........................ www.mazak.com Q Our consistent advertisers

16 - 30 November 2011

Auto Monitor

GLOBAL WATCH

Visteon to supply advanced electronics for Fisker

isteon has kickstarted the production of lighting and electronic products for Fisker Karma, an electric vehicle with extended range. The vehicle incorporates Visteon’s infotainment platform that allows technologies to be quickly added and customised for any market. The system provides onboard navigation, AM/FM/ satellite radio, USB/iPod connectivity and Bluetooth wireless technology audio streaming and hands-free phone functionality. The company has designed the user interface for all major vehicle infotainment and climate controls, accessed through a 10.2 inch haptic touchscreen display that eliminates the need for mechanical dials and buttons, reducing materials and production tooling. Additionally, it will also supply a premium audio system with multiple amplifiers and speakers. By utilising a high-efficiency Class D audio amplifier, the system draws less current, supporting Fisker’s green technology objectives. The Karma’s exterior design is accentuated with Visteon’s bi-functional high-intensity discharge (HID) projector headlamp for high and low beam applications. The styling is further enhanced with an LED park, turn and daytime running lamps. Visteon provides engineering support and produces headlamps for the Karma in North America, and manufactures the electronic components in Europe. Fisker Automotive, established in 2007, delivers electric vehicles with extended range. Visteon reported net income of $41 million on sales of $2.04 billion, compared with a net loss of $140 million on sales of $1.7 billion for the third quarter of 2010. Adjusted EBITDA for the third quarter of 2011 was $166 million, compared with $149 million for the third quarter of 2010. The automotive component supplier sold a portion of its ownership interests in Duckyang Industries and its voting interests were reduced to a non-controlling level. Duckyang will be deconsolidated from the company’s financial statements effective October 2011 and the company will commence equity method accounting. Duckyang reported sales of $514 million for the nine months ended September and had cash balances of $57 million, total assets of $187 million and total liabilities of $129 million as of September. The comopany has won a substantial amount of new business during the fi rst nine months of 2011, with nearly half to be manufactured in Asia. These new business wins are expected to generate annual sales of approximately $865 million in coming years, a significant increase when compared with full-year 2010 new business wins of $606 million. Product sales have increased by $335 million or nearly 20 percent, compared with the third quarter of 2010, reflecting higher production volumes across all major customers and favourable currency. Hyundai accounted for 32 percent of the company’s third-quarter product sales, with Ford representing 26 percent. Renault-Nissan accounted for eight percent and PSA PeugeotCitroën about five percent. On a regional basis, Asia accounted for 44 percent of total product sales, while Europe represented 33 percent, North America 17 percent

and South America six percent. Product gross margin for the third quarter of 2011 was $148 million, up $109 million compared with $39 million in the third quarter 2010, which included a $111 million net charge related to changes in the US Other Post-Retirement Employee Beneﬁt (OPEB) plans. Beneﬁts from higher production volumes

CWK 400

and favourable currencies were more than offset by the impact of higher depreciation and amortisation resulting from fresh-start accounting and unfavourable net cost performance, including $seven million of employee-related costs associated with a plant closure in Europe. During the third quarter of 2011, Visteon recognised $43 mil-

CWK 500

lion of equity in the net income of non-consolidated affi liates, compared with $35 million in 2010, for an increase of 23 percent. Yanfeng Visteon Automotive Trim Systems (YFV) and related affi liate interests contributed $40 million in equity income, an increase of $eight million compared with a year earlier. YFV, a 50-percent Visteon owned entity, recorded total sales for the third-quarter 2011 of $740 million, compared with $713 million a year earlier for a four percent increase. For the fi rst nine months of 2011, total product sales of $6.19 billion were higher by $751 million, or 14 percent, compared with the same period a year earlier. For the fi rst nine months, the company reported net income of $106 million compared with a net loss of $108 million during the fi rst nine months of 2010. Net income for the fi rst nine months

of 2011 included a loss on debt extinguishment of $24 million associated with the successful debt refi nancing completed in April, and $18 million of net restructuring charges principally related to the announced closure of a plant in Europe. The company expects full-year 2011 sales to be in the range of $eight billion to $8.2 billion and adjusted EBITDA in the range of $660 million to $680 million. Free cash flow is expected to be a use of approximately $150 million. Visteon is a leading global automotive supplier that designs, engineers and manufactures climate, interior, electronic and lighting products for vehicle manufacturers. With corporate offices in Van Buren Township, Shanghai and Chelmsford, the company has facilities in 27 countries and employs approximately 27,000 people.

CWK 630

CWK 800

Proposal Engineering

Application Engineering

Fixture Engineering

TOTAL TECHNOLOGY SOLUTIONS FOR THE INDIAN CUSTOMERS

Tool Engineering StarragHeckert Machine Tools Private Limited No 349/350, 9th Cross, 4th Phase Peenya Industrial Area Bangalore - 560058 India Tel: +91 80 42770 602 sales.in@starragheckert.com india@starragheckert.com

Training Centre

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Auto Monitor

PRODUCT INDEX

16-30 November 2011

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

AC motors ...................................................................15

Dehumidiﬁed air dryers .............................................29

National Productivity Summit-2011 ...........................36

Acc paddle sensor assemblies ....................................45

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

Paint circulation systems ...........................................16

ADEA - automotive dealership excellence awards......40

Die casting automation ..............................................20

Paint pumps ...............................................................16

Aftermarket components ...........................................18

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

Paint spray guns .........................................................17

Air chillers ..................................................................29

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

PBEGL geared motors .................................................15

Aluminium castings....................................................20

EGR valves ..................................................................45

Pistons & pistons rings ...............................................39

Aluminum ..................................................................8

Electrical products cable ties .....................................57

Plastic moulded components ....................................19

Auto Expo-2012 ..........................................................50

Electronic control units ..............................................45

Polymer conveyer belts ..............................................29

Auto ladles .................................................................20

Electronics products ..................................................57

Pouring automation ...................................................20

Auto pouring ..............................................................20

Engineering Expo .......................................................52

Powder coating systems .............................................16

Automatic painting systems .......................................16

Epoxy & polyurethane systems ..................................27

Powder feeding systems .............................................26

Automatic spray guns .................................................26

Events .........................................................................22, 35, 36

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

Automotive electrical components ............................19

Exhibitions .................................................................38, 40

Precision grinders ......................................................1

Automotive Logistics India Conference ......................35

Extension springs .......................................................3, 44

Proﬁle projectors .......................................................12

Automotive products .................................................11

Factory automation....................................................37

PVC solutions..............................................................30

Automotive wire harness ...........................................6

FADA’S 7th auto summit .............................................46, 48

Quality steels ..............................................................4

Bicycle components & assemblies .............................8

Five-axis machining centres .......................................55

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

Brake motors..............................................................15

Flameproof motors ....................................................15

Resistor assemblies ....................................................6

Brass ...........................................................................8

Flange mounting motors ............................................15

Robot systems ............................................................29

Cable glands ...............................................................57

Forged components ...................................................8

Robotic pouring .........................................................20

Cam shaft holders ......................................................8

Foundry automation ..................................................20

Salt spray chambers ...................................................53

Capacitors discharge igniters .....................................6

Four-axis horizontal machining centres.....................55

Scooters & three wheelers .........................................31

Casting........................................................................27

General engineering...................................................8

Sealer dispensing systems ..........................................16

CED/KTL coatings........................................................2

Granulators ................................................................29

Seat assemblies ..........................................................19

Clamps........................................................................13

Gravity castings ..........................................................20

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

CNC HMCs ...................................................................43

Grinder .......................................................................29

Silicon carbide-based particulate ﬁlters ....................47

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

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

Slipring crane-duty motors ........................................15

CNC machines ............................................................43

Heat shrink tubings ....................................................57

Solderless terminals ...................................................57

CNC oval turning centres ............................................43

Hollow bars ................................................................25

Solid carbide drills & mills .........................................28

CNC turn mill centres .................................................43

Hopper dryers ............................................................29

Solid carbide reamers ................................................28

CNC turning centres....................................................43

Hopper loaders ..........................................................29

Solid carbide special drills & mills .............................28

CNC vertical machining centres..................................43

Horizontal CNC machines...........................................43

Solid carbide special reamers ....................................28

CNC/VMC machines ....................................................23

Horizontal machining centres ....................................43

Solid carbide tools......................................................51

CNCs ...........................................................................43

Hot/cold & warm forged machined parts ..................19

Spray guns ..................................................................16

Coatings......................................................................27

HVAC parts .................................................................8

Strip steels ..................................................................4

Combination switches ................................................6

IC engine valves..........................................................19

Super ﬁnishing ﬁlms...................................................10

Compact chillers.........................................................29

Imtex Forming-2012 ...................................................38

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

Compressed air ﬁlters ................................................17

Induction heating equipment ....................................12

Tool bits .....................................................................4

Compression springs ..................................................3, 44

Industrial products ....................................................18

Tool steels ..................................................................4

Connecting rods .........................................................8

Logistics services ........................................................7

Torsion springs ...........................................................3, 44

Connectors .................................................................57

Machinery steels ........................................................4

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

Copper ........................................................................8

Magnum spray guns ...................................................26

Turning machine solutions.........................................32-33

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

Manual powder coding systems .................................26

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

Cutting tools ...............................................................51

Metal cutting tools .....................................................28

Tyres & tubes for bicycles...........................................31

Cylindrical grinders ....................................................1, BC

Metﬁn compounds .....................................................10

Vacuum pumps ..........................................................45

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

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

Modular tooling systems ............................................BIC

Vertical line series ......................................................43

Molten metal handling...............................................20

Vertical machining centres.........................................21, BC

Motorcycles ................................................................31

VMC/HMC machines ...................................................41

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

Motors ........................................................................15

VMC-linear series ........................................................43

Mould temperature controllers..................................29

Wire connectors .........................................................57

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

Movement technology ...............................................26

Wire forms ..................................................................3, 44

Looking for a Supplier?

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

16 - 30 November 2011

Auto Monitor

GLOBAL WATCH

Nissan eyes more capacity in key markets N

issan is looking to strengthen its manufacturing footprint in key markets even as it is considering investing $two billion in a new plant in a Mexican state. The government of Aguascalientes recently confirmed that Nissan, which already has a plant in the north-central state, was mulling new manufacturing investments in Latin America’s second biggest economy. A spokesman in Mexico for Nissan, which already has a plant in the city of Cuernavaca just south of Mexico City, said in a statement that the fi rm was “continuing to study opportunities to install additional capacity” in key markets. The new plant would create around 10,000 jobs over the mediumterm, Aguascalientes said. The governor pitched his state as the best option for the plant to Carlos Ghosn, CEO of Nissan and its French affi liate Renault in a recent trip to Japan. Nissan and other Japanese automakers—stung by the strong yen that has been eroding profits on exports—are exploring ways to shift output of cars and parts outside Japan. Mazda and Honda have announced plans this year to build assembly plants in Mexico, in part to avoid currency swings. Nissan’s quarterly operating profit fell 4.6 percent to 159.3 billion yen ($2 billion) for JulySeptember, beating analysts’ expectations. The result was better than an average estimate of 133 billion yen in a Reuter’s survey of 13 analysts. The company’s second-quarter net profit was 98.4 billion yen, down 3.3 percent. Nissan raised its global sales forecast to 4.75 million vehicles for the financial year ending in March, up from 4.6 million in its prior forecast. The automaker also lifted its sales forecast for North Amercia to 1.35 million vehicles, up from 1.33 million in the previous estimate and for China to 1.25 million vehicles, up from 1.15 million, for the current financial year. Nissan is set to shine against rivals Toyota and Honda, which have been hit harder by the Thai floods and have been slower in boosting sales in emerging markets. Nissan recovered more quickly from a supply chain disruption caused by the March 11 earthquake and tsunami in northeast Japan because it had stocked up on components to prepare for a big boost in vehicle production. Investors have also cheered its aggressive approach to expand in emerging markets such as China and Russia, as well as to combat currency losses by importing more components from outside Japan. So far this year, Nissan’s sales are up by double-digit percentages in every major market except Japan. Nissan raised its annual operating profit forecast for the year to March 2012 to 510 billion yen, above its initial estimate of 460 billion yen and bringing it near the consensus 520 billion in a survey of 25 analysts by Thomson Reuters. The automaker will aim to restart partial production in Thailand from November to limit lost output in the Southeast Asian export hub to 40,000 vehicles. The floods should not affect production in North America, Europe, and China, but may affect Japan, risking the loss of 20,000 units, Shiga said. With Honda unable to meet the demand, Nissan outsold its

Carlos Ghosn, CEO, Nissan

rival in the profitable US market during the quarter, although it fell below Honda in October. Honda this week posted a 68 percent drop in second-quarter operating profit and withdrew its guidance given uncertainty surrounding the Thai floods. Like other Japanese automakers, Nissan is grappling with a dollar that has weakened to record lows recently and remains below 80 yen, even after Japan’s yen-selling intervention. Demand in debt-burdened European countries such as Spain and Italy has weakened, but Executive Vice President Andy Palmer said surging sales in Russia was plugging that hole. “The only problem we have today, frankly speaking, is we can’t make enough Qashqais and Jukes, that’s it,” he said, referring to the popular compact SUVs produced in Britain.

Auto Monitor

16 - 30 November 2011

N AMERICAN ASSEMBLY

AUTOFACTS Global Automotive Outlook PricewaterhouseCoopers LLP

North America Assby Tracking 9-2011 (Tracking by Brand & Nameplate) September 2011 Ownership Org/ Brand & Nameplate AutoAlliance International (USA) Ford Mustang Mazda Mazda6 BMW (Germany) BMW X3 BMW X5 BMW X6 Chrysler Group LLC (USA) Chrysler 200 Chrysler 300 Chrysler PT Cruiser Chrysler Sebring Chrysler Town & Country Dodge Avenger Dodge Caliber Dodge Caravan Dodge Challenger Dodge Charger Dodge Dakota Dodge Durango Dodge Journey Dodge Nitro Dodge Ram Pickup Dodge Viper Fiat 500 Fiat Freemont Jeep Commander Jeep Compass Jeep Grand Cherokee Jeep Liberty Jeep Patriot Jeep Wrangler Jeep Wrangler Unlimited Lancia Flavia Lancia Grand Voyager Lancia Thema Ram Pickup Volkswagen Routan Daimler AG (Germany) 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 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 Fuji Heavy Industries (Japan) Subaru Legacy Subaru Tribeca Toyota Camry General Motors Company (USA) Buick Enclave Buick LaCrosse Buick Lucerne Buick Regal Buick Verano Cadillac CTS Cadillac DTS Cadillac Escalade Cadillac Escalade ESV Cadillac Escalade EXT Cadillac SRX Cadillac STS Chevrolet Avalanche Chevrolet Aveo Chevrolet C2 Chevrolet Camaro Chevrolet Captiva

Last 3 Months

Volume

YOY % Chg

Assembly Share %

10,918 6,655 4,263 24,583 10,721 10,251 3,611 152,491 7,042 2,742 9,841 3,720 691 15,093 3,124 4,924 4,042 9,988 2,329 5,361 2,620 4,237 15,858 5,661 2,413 5,539 8,747 2,497 2,497 1,242 31,745 538 14,505 729 3,360 8,736 1,680 242,171 3,805 9,162 14,554 29,353 6,154 16,780 11,872 2,625 26,576 68,782 27,084 8,413 7,551 43 891 596 3,167 3,644 1,119 18,802 14,802 559 3,441 261,823 6,044 4,476 2,713 4,617 1,797 823 177 7,480 2,108 6,955 3,455 9,679 2,443

-1.8% -6.3% 6.2% 95.9% 17.8% -6.1% -2.4% 38.1% -100.0% -21.3% -36.5% -86.1% -5.5% -30.2% -53.9% -100.0% -24.4% -20.8% -23.0% -10.4% -4.6% -66.5% 8.2% 25.1% 9.8% 143.4% 25.3% 28.3% 20.5% 29.5% 13.8% 6.9% 1.1% 1.0% -3.8% 17.2% 11.2% 101.2% -100.0% 3.5% -31.6% 22.1% 5.0% 16.5% 28.5% -18.6% -62.3% -32.2% 156.9% 48.8% 24.8% -5.7% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -15.7% 6.7% 14.3% -56.7% 8.8% -1.3% -18.4% -100.0% -14.2% -100.0% -24.0% -51.2% -24.7% 5.9% -100.0% -23.9% 57.7% 1.1% 167.4% 11.3%

0.9% 0.6% 0.4% 2.1% 0.9% 0.9% 0.3% 13.1% 0.6% 0.2% 0.8% 0.3% 0.1% 1.3% 0.3% 0.4% 0.3% 0.9% 0.2% 0.5% 0.2% 0.4% 1.4% 0.5% 0.2% 0.5% 0.7% 0.2% 0.2% 0.1% 2.7% 0.0% 1.2% 0.1% 0.3% 0.7% 0.1% 20.7% 0.3% 0.8% 1.2% 2.5% 0.5% 1.4% 1.0% 0.2% 2.3% 5.9% 2.3% 0.7% 0.6% 0.0% 0.1% 0.1% 0.3% 0.3% 0.1% 1.6% 1.3% 0.0% 0.3% 22.4% 0.5% 0.4% 0.2% 0.4% 0.2% 0.1% 0.0% 0.6% 0.2% 0.6% 0.3% 0.8% 0.2%

YOY Share Chg (-0.1) (-0.1) (-0.0) 0.9 0.9 0.1 (-0.0) (-1.5) 0.6 0.0 (-0.4) (-0.3) (-0.2) (-0.4) (-0.2) (-0.2) (-0.6) (-0.1) 0.3 (-0.4) (-0.1) 0.5 0.2 (-0.2) (-0.3) (-0.1) (-0.5) (-0.0) 0.1 0.2 0.2 0.1 0.0 0.0 0.2 0.0 0.0 0.1 0.0 (-0.4) (-0.0) (-0.1) (-0.2) 0.2 0.0 0.7 (-0.1) (-0.1) (-0.1) 0.2 (-0.2) 0.1 0.1 (-0.2) (-0.0) (-0.0) 0.0 0.1 0.0 (-0.0) (-0.1) (-0.1) (-0.2) (-0.3) (-0.2) (-0.1) (-0.5) (-0.0) 0.0 (-0.4) (-0.0) (-0.1) (-0.1) (-0.3) 0.2 (-0.1) (-0.2) (-0.1) (-0.1) (-0.0) (-0.0) (-0.1) (-0.1) 0.2 (-0.0) 0.5 0.0

Volume 29,039 20,211 8,828 70,531 30,798 29,201 10,532 466,632 29,447 11,350 26,556 13,598 6,717 42,376 11,019 18,073 5,139 15,241 31,153 7,070 15,503 9,000 18,060 43,318 19,267 13,521 14,806 24,268 2,497 2,497 1,242 82,875 2,039 33,820 1,876 7,744 20,240 3,960 631,878 17,991 28,788 40,098 75,389 13,978 43,752 30,875 7,502 64,808 172,510 70,160 23,113 18,123 130 2,942 1,189 7,784 8,153 2,317 2,276 51,550 34,100 1,257 16,193 739,021 18,497 13,299 5,961 15,268 4,548 2,355 533 23,260 7,351 18,897 9,727 25,348 9,093

YOY % Chg 17.0% 33.1% -8.3% 118.6% 30.4% 6.6% 15.9% 61.9% -100.0% -100.0% -20.1% -11.4% -46.6% 3.6% -1.7% -26.8% 16.9% -20.1% -4.7% 72.1% -4.2% 29.2% -25.1% 5.7% 25.8% 21.2% -41.4% 13.6% 27.4% 8.0% 16.7% 4.3% 11.3% 95.4% 8.2% 25.5% 18.0% 1.9% 182.0% -100.0% 5.2% -14.7% 12.4% 5.2% 10.4% 53.3% -20.3% -53.9% -20.4% 55.6% 40.3% 44.3% -18.6% -17.6% -100.0% -100.0% -100.0% -100.0% -100.0% -11.9% -7.5% 33.7% -21.9% 4.6% -0.7% -26.9% -100.0% -9.4% -100.0% -24.4% -44.9% -21.8% 15.6% -100.0% -18.5% 30.5% -11.4% 34.5% 24.1%

Year to Date Assembly Share % 0.9% 0.6% 0.3% 2.2% 1.0% 0.9% 0.3% 14.6% 0.9% 0.4% 0.8% 0.4% 0.2% 1.3% 0.3% 0.6% 0.2% 0.5% 1.0% 0.2% 0.5% 0.3% 0.6% 1.4% 0.6% 0.4% 0.5% 0.8% 0.1% 0.1% 0.0% 2.6% 0.1% 1.1% 0.1% 0.2% 0.6% 0.1% 19.8% 0.6% 0.9% 1.3% 2.4% 0.4% 1.4% 1.0% 0.2% 2.0% 5.4% 2.2% 0.7% 0.6% 0.0% 0.1% 0.0% 0.2% 0.3% 0.1% 0.1% 1.6% 1.1% 0.0% 0.5% 23.2% 0.6% 0.4% 0.2% 0.5% 0.1% 0.1% 0.0% 0.7% 0.2% 0.6% 0.3% 0.8% 0.3%

YOY Share Chg 0.1 0.1 (-0.0) 1.1 1.0 0.2 (-0.0) 1.1 0.9 0.1 (-0.0) (-0.4) (-0.3) (-0.1) (-0.2) (-0.0) (-0.0) (-0.3) 0.0 0.5 (-0.3) (-0.0) 0.5 0.3 0.2 (-0.2) 0.1 (-0.2) (-0.0) 0.1 0.1 0.1 0.0 0.3 (-0.1) 0.1 0.0 0.0 0.1 (-0.0) 0.7 0.3 0.0 0.2 0.2 (-0.0) 0.9 (-0.1) (-0.0) (-0.1) 0.1 (-0.1) 0.1 0.2 (-0.2) (-0.0) (-0.0) 0.0 0.1 0.1 (-0.0) (-0.0) (-0.1) (-0.2) (-0.3) (-0.2) (-0.1) (-0.4) (-0.2) 0.0 (-0.2) (-0.6) (-0.0) (-0.2) (-0.4) 0.2 (-0.1) (-0.2) (-0.1) (-0.1) (-0.0) 0.1 (-0.0) (-0.1) 0.1 (-0.1) 0.2 0.0

Volume 85,962 60,719 25,243 206,077 89,191 83,345 33,541 1,467,654 90,143 38,543 82,561 52,302 39,023 128,157 32,868 67,674 17,390 59,160 81,556 19,886 41,358 19,724 75,031 123,410 53,296 58,257 45,025 74,308 2,497 2,497 1,242 249,628 12,118 112,886 6,190 25,264 67,968 13,464 1,950,960 66,096 105,418 125,637 240,804 42,316 123,977 92,239 22,465 157,325 537,398 217,879 75,385 57,769 324 8,856 3,940 25,789 25,179 7,830 10,192 3,977 165 167,608 108,210 4,655 54,743 2,349,069 58,681 47,688 15,882 13,649 46,381 6,515 13,917 6,099 1,856 64,816 1,907 19,934 50,923 31,568 84,702 25,617

YOY % Chg -8.9% -5.1% -16.9% 92.7% 12.3% 2.4% 21.3% 24.4% -100.0% -100.0% -20.5% 11.0% -29.7% 2.1% -2.0% -15.1% 22.6% -16.9% -1.5% -100.0% -100.0% -100.0% 135.4% 61.6% 8.5% 26.8% 3.1% 16.5% 67.4% -14.5% 14.4% 26.7% 6.3% 18.2% 7.0% 12.0% 83.0% 11.9% 12.3% 15.4% 15.0% 124.6% -100.0% 105.5% -32.8% 1.5% 12.4% 9.1% 32.4% -16.6% -56.0% -29.5% -16.7% 38.0% 45.6% 2.4% 2.9% -100.0% -43.8% -99.4% -100.0% -100.0% -100.0% -4.8% 2.1% 20.1% -17.2% 11.7% 1.6% -17.6% -30.6% 1.2% -59.8% -27.5% -37.9% -12.0% 14.6% -50.0% -8.4% 20.7% -23.9% 12.1% 17.3%

Assembly Share % 0.9% 0.6% 0.3% 2.1% 0.9% 0.9% 0.3% 15.2% 0.9% 0.4% 0.9% 0.5% 0.4% 1.3% 0.3% 0.7% 0.2% 0.6% 0.8% 0.2% 0.4% 0.2% 0.8% 1.3% 0.6% 0.6% 0.5% 0.8% 0.0% 0.0% 0.0% 2.6% 0.1% 1.2% 0.1% 0.3% 0.7% 0.1% 20.2% 0.7% 1.1% 1.3% 2.5% 0.4% 1.3% 1.0% 0.2% 1.6% 5.6% 2.3% 0.8% 0.6% 0.0% 0.1% 0.0% 0.3% 0.3% 0.1% 0.1% 0.0% 0.0% 1.7% 1.1% 0.0% 0.6% 24.3% 0.6% 0.5% 0.2% 0.1% 0.5% 0.1% 0.1% 0.1% 0.0% 0.7% 0.0% 0.2% 0.5% 0.3% 0.9% 0.3%

YOY Share Chg (-0.2) (-0.1) (-0.1) 0.9 0.9 0.0 (-0.0) 1.7 0.9 0.1 (-0.1) (-0.4) (-0.3) 0.0 (-0.2) (-0.1) (-0.0) (-0.2) 0.0 0.6 (-0.3) (-0.0) (-0.8) (-0.0) 0.4 0.2 (-0.1) 0.4 0.4 0.0 0.1 (-0.0) 0.1 0.0 0.0 0.0 0.9 (-0.0) 0.1 0.0 (-0.0) 0.1 (-0.0) 0.7 0.3 0.0 0.0 0.2 0.0 0.7 (-0.1) 0.5 (-0.1) (-0.1) 0.2 0.0 0.1 (-0.2) (-0.0) (-0.0) (-0.0) 0.1 0.1 (-0.0) (-0.0) (-0.0) (-0.0) (-0.3) (-0.3) (-0.2) (-0.1) (-0.2) (-0.1) 0.0 (-0.2) 0.8 (-0.0) (-0.2) (-0.1) 0.1 (-0.0) (-0.1) (-0.1) (-0.0) (-0.0) 0.0 (-0.0) (-0.0) 0.1 (-0.1) 0.0 0.0

16 - 30 November 2011

Auto Monitor

N AMERICAN ASSEMBLY September 2011

Ownership Org/ Brand & Nameplate

Volume

YOY % Chg

Chevrolet Cobalt Chevrolet Colorado Chevrolet Corvette Chevrolet Cruze Chevrolet Equinox Chevrolet Express Chevrolet HHR Chevrolet Impala Chevrolet Malibu Chevrolet Silverado Chevrolet Sonic Chevrolet Suburban Chevrolet Tahoe Chevrolet Traverse Chevrolet Volt GMC Acadia GMC Canyon GMC Savana GMC Sierra Pickups GMC Terrain GMC Yukon GMC Yukon XL Hummer H3 Hummer H3T Saab 9-4X Saturn Outlook 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 (South Korea) Hyundai Elantra/i30 Hyundai Santa Fe Hyundai Sonata/i40 Kia Optima Kia Sorento Mitsubishi Motors Corp (Japan) Mitsubishi Eclipse Mitsubishi Endeavor Mitsubishi Galant Nissan Motor (Japan) Infiniti JX Series Infiniti QX series Nissan Altima Nissan Armada Nissan Frontier Nissan March Nissan Maxima Nissan NV-Series Nissan Pathfinder Nissan Pickup Nissan Sentra Nissan Tiida Nissan Titan Nissan Tsuru Nissan Versa Nissan Xterra Suzuki Equator NUMMI (USA) 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 Beetle Volkswagen Bora Volkswagen Golf/Jetta Variant Volkswagen Jetta Volkswagen Passat Total Light Vehicle

2,906 1,260 27,284 17,952 7,198 14,814 14,137 43,381 6,517 4,778 7,712 11,571 2,367 7,616 1,131 1,641 19,597 9,413 4,786 2,987 8 119,425 6,015 2,025 3,411 622 27,184 24,550 2,275 23,761 15,034 12,566 1,982 54,581 9,547 5,444 20,108 6,566 12,916 1,901 168 1,733 106,616 3 31,124 1,528 5,828 5,818 4,391 649 3,099 4,406 14,016 14,834 2,238 4,076 12,459 1,947 200 158 158 112,895 6,688 5,297 14,352 20,179 10,226 2,034 14,565 1,785 12,807 12,981 5,566 6,415 47,121 4,533 56 11,260 26,272 5,000 1,167,990

-11.3% -11.1% 272.3% 7.9% 22.6% -100.0% 11.9% -33.1% 8.5% -3.3% -10.5% -12.8% 0.0% -1.6% -27.2% -9.6% 26.3% 39.0% -12.9% 8.5% -4.6% 25.0% 2.9% 936.7% 7.8% -9.2% 26.3% 2.1% -100.0% 85.1% 23.7% 5.1% 53.0% 14817.2% 3219.5% -19.7% 24.3% -44.5% -100.0% -79.3% -22.4% 16.5% 22.4% -45.0% 23.8% -31.8% -5.3% 55.6% 0.3% 138.8% -16.3% -31.6% -14.1% -25.5% 53.8% 116.4% 116.4% -5.5% -6.3% 77.9% -34.9% 23.6% 15.1% -31.9% -7.5% -38.5% -2.0% 5.5% -44.2% 25.5% 51.9% -92.5% 25.7% 25.7% 8.9%

Last 3 Months Assembly Share % 0.2% 0.1% 2.3% 1.5% 0.6% 1.3% 1.2% 3.7% 0.6% 0.4% 0.7% 1.0% 0.2% 0.7% 0.1% 0.1% 1.7% 0.8% 0.4% 0.3% 0.0% 10.2% 0.5% 0.2% 0.3% 0.1% 2.3% 2.1% 0.2% 2.0% 1.3% 1.1% 0.2% 4.7% 0.8% 0.5% 1.7% 0.6% 1.1% 0.2% 0.0% 0.1% 9.1% 0.0% 2.7% 0.1% 0.5% 0.5% 0.4% 0.1% 0.3% 0.4% 1.2% 1.3% 0.2% 0.3% 1.1% 0.2% 0.0% 0.0% 0.0% 9.7% 0.6% 0.5% 1.2% 1.7% 0.9% 0.2% 1.2% 0.2% 1.1% 1.1% 0.5% 0.5% 4.0% 0.4% 0.0% 1.0% 2.2% 0.4% 100.0%

YOY Share Chg (-0.1) (-0.0) 1.7 (-0.0) 0.1 (-0.7) 0.0 (-0.8) (-0.0) 0.6 (-0.1) (-0.1) (-0.2) 0.2 (-0.1) (-0.0) (-0.1) (-0.3) 0.1 0.1 (-0.1) 0.0 (-0.0) (-0.1) 0.0 (-0.0) 0.0 (-0.0) (-0.4) 0.0 (-0.1) (-0.1) 0.5 0.1 (-0.0) 1.3 0.8 0.5 (-0.6) 0.6 0.1 (-0.2) (-0.0) (-0.1) (-0.1) 0.6 0.0 0.3 (-0.1) 0.1 0.5 (-0.2) 0.1 (-0.0) 0.1 (-0.1) 0.7 (-0.1) (-0.2) (-0.3) (-0.1) 0.0 0.0 0.0 (-1.5) (-0.1) 0.2 (-0.8) 0.2 0.0 (-0.1) (-0.2) (-0.1) (-0.1) (-0.0) (-0.5) 0.1 1.1 0.4 (-0.1) 0.1 0.3 0.4 -

Volume 9,576 3,369 70,290 49,554 21,495 41,569 45,151 119,711 11,969 15,882 25,469 34,646 5,399 21,884 4,283 5,390 52,790 24,070 13,039 9,272 76 278,145 12,004 5,215 8,574 931 64,764 53,647 4,377 59,830 35,604 30,082 3,117 155,306 26,330 25,202 58,325 6,566 38,883 9,915 1,726 3,901 4,288 290,882 3 86,333 4,501 15,758 15,088 15,627 2,958 8,448 12,941 36,211 36,176 6,039 9,474 34,520 6,195 610 482 482 276,405 13,875 11,256 50,341 53,913 27,447 5,822 20,539 5,057 33,643 27,879 13,435 13,198 151,966 10,549 209 39,363 91,845 10,000 3,185,572

YOY % Chg 34.0% -17.2% 702.2% 17.7% 13.7% -100.0% 11.4% -32.5% -2.0% 22.2% -0.8% -18.7% -6.0% 63.4% -8.6% -10.4% 27.7% -4.6% 2.1% -15.0% -100.0% -34.4% 2.6% -17.2% 343.3% -12.7% -32.0% -28.2% -8.6% -100.0% 22.4% -3.0% -37.4% 36.8% 41040.6% 56.9% -11.3% 22.7% 7.6% -9.8% 103.8% -20.4% 14.6% 29.3% -28.6% 14.2% -12.9% 13.2% 62.1% -1.3% 92.0% -29.5% -47.1% -21.5% -12.6% 15.1% 117.1% 117.1% -15.6% -29.3% 10.8% -25.2% 12.9% 19.1% -27.0% -51.4% -28.0% -3.1% -10.6% -39.2% -8.1% 34.4% -89.9% 32.7% 32.7% 7.4%

Year to Date Assembly Share % 0.3% 0.1% 2.2% 1.6% 0.7% 1.3% 1.4% 3.8% 0.4% 0.5% 0.8% 1.1% 0.2% 0.7% 0.1% 0.2% 1.7% 0.8% 0.4% 0.3% 0.0% 8.7% 0.4% 0.2% 0.3% 0.0% 2.0% 1.7% 0.1% 1.9% 1.1% 0.9% 0.1% 4.9% 0.8% 0.8% 1.8% 0.2% 1.2% 0.3% 0.1% 0.1% 0.1% 9.1% 0.0% 2.7% 0.1% 0.5% 0.5% 0.5% 0.1% 0.3% 0.4% 1.1% 1.1% 0.2% 0.3% 1.1% 0.2% 0.0% 0.0% 0.0% 8.7% 0.4% 0.4% 1.6% 1.7% 0.9% 0.2% 0.6% 0.2% 1.1% 0.9% 0.4% 0.4% 4.8% 0.3% 0.0% 1.2% 2.9% 0.3% 100.0%

YOY Share Chg 0.1 (-0.0) 1.9 0.1 0.0 (-0.7) 0.0 (-0.8) (-0.4) 0.4 0.1 (-0.1) (-0.3) 0.2 (-0.1) 0.0 (-0.0) (-0.3) 0.1 (-0.1) (-0.0) 0.0 (-2.3) (-0.0) (-0.2) (-0.0) (-0.1) 0.0 (-0.5) (-1.0) (-0.1) (-0.3) (-0.1) 0.1 (-0.1) (-0.1) 1.0 0.8 0.2 (-0.4) 0.2 0.2 0.0 (-0.0) 0.1 (-0.0) 0.6 0.0 0.5 (-0.1) 0.0 0.5 (-0.1) 0.1 0.0 0.1 (-0.1) 0.5 (-0.1) (-0.3) (-0.4) (-0.0) 0.0 0.0 0.0 (-2.4) (-0.2) 0.0 (-0.7) 0.1 0.1 (-0.1) (-0.8) (-0.1) (-0.1) (-0.2) (-0.3) (-0.1) 1.0 0.3 (-0.1) 0.2 0.5 0.3 -

Volume 30,048 10,294 222,857 171,996 61,419 29,460 147,516 158,606 384,720 11,969 44,439 77,290 95,994 8,668 67,759 10,083 19,402 158,888 81,122 39,307 26,617 480 788,800 1,170 39,129 12,655 23,935 1,482 172,181 167,941 13,034 159,432 7,500 93,457 88,997 7,887 454,995 92,343 76,154 167,312 6,566 112,620 32,119 7,142 10,567 14,410 841,452 3 236,116 15,105 44,077 25,108 50,720 11,290 26,557 35,942 122,310 86,703 20,027 46,655 101,052 18,137 1,650 1,420 1,420 809,776 44,498 29,477 142,419 146,511 73,757 14,021 81,722 13,185 90,897 78,535 57,390 37,364 407,596 10,549 389 112,764 263,112 20,782 9,676,374

YOY % Chg -100.0% 14.9% -22.4% 2443.4% 38.2% 18.6% -48.0% 8.3% -12.3% 12.6% 2.3% -1.7% 5.1% 13.0% 4.7% 14.2% 2.6% 56.8% 3.5% 3.3% -100.0% -100.0% -100.0% -100.0% -19.5% -11.4% -22.0% -16.8% -13.8% -67.2% -23.3% -28.3% -55.4% -14.7% -37.5% 7.4% -1.2% -53.8% 40.5% 144185.9% 22.3% -0.4% 20.4% 43.9% 31.5% 133.5% 16.6% 13.6% -100.0% 12.8% -17.5% 13.0% -7.9% 27.9% 71.4% 19.3% 75.4% -12.9% -14.7% -18.2% -8.2% 33.1% -100.0% -100.0% -100.0% 116.8% 116.8% -15.3% -29.4% -8.0% -33.4% 3.9% 20.1% -52.8% -24.2% -27.2% -7.1% 33.7% -29.5% -26.4% 33.3% -96.7% 48.0% 48.0% 8.1%

Assembly Share % 0.3% 0.1% 2.3% 1.8% 0.6% 0.3% 1.5% 1.6% 4.0% 0.1% 0.5% 0.8% 1.0% 0.1% 0.7% 0.1% 0.2% 1.6% 0.8% 0.4% 0.3% 0.0% 8.2% 0.0% 0.4% 0.1% 0.2% 0.0% 1.8% 1.7% 0.1% 1.6% 0.1% 1.0% 0.9% 0.1% 4.7% 1.0% 0.8% 1.7% 0.1% 1.2% 0.3% 0.1% 0.1% 0.1% 8.7% 0.0% 2.4% 0.2% 0.5% 0.3% 0.5% 0.1% 0.3% 0.4% 1.3% 0.9% 0.2% 0.5% 1.0% 0.2% 0.0% 0.0% 0.0% 8.4% 0.5% 0.3% 1.5% 1.5% 0.8% 0.1% 0.8% 0.1% 0.9% 0.8% 0.6% 0.4% 4.2% 0.1% 0.0% 1.2% 2.7% 0.2% 100.0%

YOY Share Chg (-1.0) 0.0 (-0.0) 2.2 0.4 0.1 (-0.3) 0.0 (-0.4) 0.2 0.1 (-0.0) (-0.1) (-0.0) 0.1 0.0 (-0.0) 0.0 (-0.1) 0.3 (-0.0) (-0.0) (-0.0) (-0.0) 0.0 (-0.0) (-0.0) (-2.8) (-0.0) (-0.2) (-0.0) (-0.1) (-0.0) (-0.7) (-0.9) (-0.2) (-0.4) (-0.1) (-0.0) (-0.1) (-0.1) 1.1 1.0 0.1 (-0.1) 0.1 0.1 0.1 0.0 0.1 0.0 0.4 0.0 (-0.0) 0.1 (-0.0) 0.0 0.3 (-0.1) 0.1 0.0 0.1 0.1 0.3 (-0.0) (-0.1) (-0.3) (-0.0) 0.0 (-1.0) (-0.7) (-0.3) 0.0 0.0 (-2.3) (-0.2) (-0.1) (-0.9) (-0.1) 0.1 (-0.2) (-0.4) (-0.1) (-0.2) 0.2 (-0.3) (-0.2) 0.8 0.1 (-0.1) 0.3 0.7 0.2 -

Auto Monitor

16-30 November 2011

EUROPEAN SALES

New Vehicle Registration in Europe -by Manufacturer GROUP

BRAND

MV-Motor Vehicles (LV+CV) Aston Martin Aston Martin BMW BMW Mini Other Total China Brilliance Changan Great Wall Landwind Lifan Other Total Chrysler Chrysler Dodge Jeep Total DAF DAF Daimler Mercedes Smart Other Total Fiat Alfa Romeo Fiat Iveco Lancia Other Total Ford Ford Mercury Other Total GM Chevrolet Opel Other Total Jaguar Land Rover Jaguar Land Rover Total Japan Daihatsu Honda Mazda Mitsubishi Nissan Subaru Suzuki Other Total Korea Daewoo Hyundai KIA Other Total MAN MAN Other Total MG Rover Rover Porsche Porsche PSA Citroen Peugeot Total Renault Dacia Renault Other Total Scania Scania Toyota Toyota Lexus Total Volkswagen AG Audi Seat Skoda Volkswagen Other Total Volvo Trucks Volvo Other SAAB Volvo Other Total Total PC- Passenger Cars Aston Martin Aston Martin BMW BMW Mini Other Total China Brilliance Changan Great Wall Landwind Lifan Other Total Chrysler Chrysler Dodge Jeep Total DAF DAF Daimler Mercedes Smart Other Total Fiat Alfa Romeo Fiat Iveco Lancia Other Total Ford Ford Mercury Other Total GM Chevrolet

2011 AUG 136 40338 8645 28 49011

2010 AUG

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

% CHANGE

YEAR TILL DATE 2011

-6.85 31.10 44.81 0.00 33.30

1664 427087 106005 352 533444

-25.30

2 1539

GROUP

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

2011 AUG 53622 60 65023 805 2209 3014 522 7104 7943 7219 23864 2452 10797 200 60101

0 36 98 283 111 1620 2014 2448 52011 4014 129 56154 5914 42616 6373 4736 187 59826 73717 0 0 73717 11360 59104 73 70537 806 2798 3604 523 7109 8060 8749 26731 2455 10851 836 65314

146 30770 5970 28 36768 0 0 83 0 2 6 91 522 748 752 2022 2047 43084 4199 105 47388 6036 45262 6051 3780 225 61354 61658

-100.00 500.00 7.69 -45.79 -85.16 115.43 -0.40 19.59 20.72 -4.41 22.86 18.50 -2.02 -5.85 5.32 25.29 -16.89 -2.49 19.56

0 61658 11496 53818 115 65429 1106 2626 3732 1110 8989 10748 9000 23318 2780 11841 1076 68862

19.56 -1.18 9.82 -36.52 7.81 -27.12 6.55 -3.43 -52.88 -20.91 -25.01 -2.79 14.64 -11.69 -8.36 -22.30 -5.15

8 52 1601 4237 2447 15255 21939 24695 525101 54636 1264 581001 94675 616539 60341 66069 3322 840946 866337 2 6 866345 118275 736680 829 855784 13881 51943 65825 8706 97674 97548 98054 342627 26157 120576 11439 802781

27232 18220 507 45959 4113 6 4119

23273 15212 391 38876 3171 17 3188

17.01 19.77 29.67 18.22 29.71 -64.71 29.20

265859 182781 4899 453539 34524 183 34707

2276 53000 60387 113387 17072 71740 3 88815 1885 34804 1866 36670 43491 18989 30899 121000 102 214481 2287 334 11958 3053 15345 908083

1966 53642 58992 112634 19840 69352 30 89222 1674 38455 926 39381 37143 18428 30155 100668 91 186485 1491 1145 9411 3146 13702 838116

15.77 -1.20 2.36 0.67 -13.95 3.44 -90.00 -0.46 12.60 -9.49 101.51 -6.88 17.09 3.04 2.47 20.20 12.09 15.01 53.39 -70.83 27.06 -2.96 11.99 8.35

27295 655932 760543 1416475 175480 885401 42 1060923 21487 380785 17066 397851 457849 212736 333317 1262464 1449 2267815 26245 12258 170402 32149 214809 10517171

136 40327 8644 28 48999

-6.85 31.84 44.79 0.00 33.93

1664 426814 105987 352 533153

14.29

2 756

0 36 60 184 47 1567 1798

146 30588 5970 28 36586 0 0 21 0 2 6 29 470 699 678 1847

-100.00 500.00 106.90 -60.85 -93.28 131.12 -2.65

8 52 818 3519 1789 14641 19949

36984 4014

29515 4199

25.31 -4.41

390514 54635

LCV-Light Commercial Vehicles up to 3.5t ** BMW BMW 12 Mini Total China Great Wall 38 Chrysler Chrysler 99 Dodge 63 JEEP 53 Total 215 DAF DAF Daimler Mercedes 9115 Fiat Alfa Romeo 8 Fiat 9561 Iveco 3126 Lancia 0 Total 12695 Ford Ford 11092 Other Total GM Chevrolet 18 Opel 5443 SAAB Other 11 Total 5472 Jaguar Land Rover Jaguar Land Rover 590 Japan Daihatsu 1 Honda 5 Mazda 117 Mitsubishi 1332 Nissan 2816 Subaru 3 Suzuki 54 Other 499 Total 4827 Korea Daewoo Hyundai 227 KIA 56 Other 24 Total 307 Porsche Porsche 2 PSA Citroen 10048 Peugeot 10121 Total 20169 Renault Dacia 950 Renault 15296 Total 16246 Toyota Toyota 2298 Volkswagen AG Audi 48 Seat 144 Skoda 248 Volkswagen 13157 Total 13597 Other Volvo 30 Other 667 Total 697 Total 97373

40998 5906 32872 63 4736 187 43764 62531 0 0 62531 11341

33714 6029 37424 77 3778 225 47533 52357 0

21.61 -2.04 -12.16 -18.18 25.36 -16.89 -7.93 19.43

52357 11470

19.43 -1.12

445149 94512 483438 519 66054 3322 647845 742204 2 6 742212 118044

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

0 62

0 24

Jaguar Land Rover

Japan

Korea

MAN MG Rover Porsche PSA

Renault

Scania Toyota

Volkswagen AG

Other

Total

2010 AUG 49599 97 61166 1106 2287 3393 1109 8989 10577 7435 20660 2771 11806 219 63566

% CHANGE 8.11 -38.14 6.31 -27.22 -3.41 -11.17 -52.93 -20.97 -24.90 -2.91 15.51 -11.51 -8.55 -8.68 -5.45

YEAR TILL DATE 2011 676986 684 795714 13877 43435 57312 8683 97636 96044 80822 306493 26081 119989 2478 738226

27005 18164 483 45652

22971 15131 348 38450

17.56 20.04 38.79 18.73

263179 182111 4606 449896

2274 42940 50210 93150 16122 54937 71059

1911 43628 50123 93751 18882 54569 73451

19.00 -1.58 0.17 -0.64 -14.62 0.67 -3.26

27129 538984 644699 1183683 165757 703020 868777

32494 1866 34360 43443 18845 30651 107679 102 200720 334 11928 1156 13418 787057

35711 926 36637 36848 18284 29874 89633 91 174730 1145 9389 1312 11846 731114

-9.01 101.51 -6.22 17.90 3.07 2.60 20.13 12.09 14.87 -70.83 27.04 -11.89 13.27 7.65

355433 17062 372495 456947 211555 330812 1131914 1449 2132677 12258 169993 13203 195454 9212153

182

-93.41

291

62 52 49 74 175

-38.71 90.38 28.57 -28.38 22.86

783 717 649 614 1980

7767 7 7652 2960 2 10621 9023

17.36 14.29 24.95 5.61 -100.00 19.53 22.93

85932 163 129857 33538 15 163573 122395

24 4215

-25.00 29.13

219 59343

18 4257

-38.89 28.54

138 59700

339 1 0 167 1404 2597 9 35 730 4943

74.04 0.00 -29.94 -5.13 8.43 -66.67 54.29 -31.64 -2.35

8513 23 38 1504 15438 35590 76 586 7677 60932

302 81 43 426 55 10004 8850 18854 958 13404 14362 2725 295 143 281 10763 11482 22 661 683 85956

-24.83 -30.86 -44.19 -27.93 -96.36 0.44 14.36 6.97 -0.84 14.12 13.12 -15.67 -83.73 0.70 -11.74 22.24 18.42 36.36 0.91 2.05 13.28

2673 670 293 3636 166 116857 115428 232285 9723 163332 173055 25202 902 1180 2497 128638 133217 409 8291 8700 1080361

53 16 11 27 38 26

129 24 2 26 90 2

-58.91 -33.33 450.00 3.85 -57.78 1200.00

590 217 132 349 505 248

-100.00

16-30 November 2011

GROUP Korea

PSA

Renault Volkswagen AG

Other

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

2011 AUG

2010 AUG

% CHANGE

YEAR TILL DATE 2011

GROUP GM Japan

1 1 2 26

4 1 5 61

-75.00 0.00 -60.00 -57.38

16 10 26 224

109

-31.19

754

MAN

PSA

65 312

Total Light Commercial Vehicles up to 3.5t (LCV+LBC) BMW BMW 12 Mini Total China Great Wall 38 Chrysler Chrysler 99 Dodge 63 JEEP 53 Total 215 DAF DAF Daimler Mercedes 9168 Fiat Alfa Romeo 8 Fiat 9577 Iveco 3137 Lancia 0 Total 12722 Ford Ford 11130 Other Total GM Chevrolet 18 Opel 5469 SAAB Other 11 Total 5498 Jaguar Land Rover Jaguar Land Rover 590 Japan Daihatsu 1 Honda 5 Mazda 117 Mitsubishi 1332 Nissan 2816 Subaru 3 Suzuki 54 Other 499 Total 4827 Korea Daewoo Hyundai 227 KIA 56 Other 24 Total 307 Porsche Porsche 2 PSA Citroen 10049 Peugeot 10122 Total 20171 Renault Dacia 950 Renault 15322 Total 16272 Toyota Toyota 2298 Volkswagen AG Audi 48 Seat 144 Skoda 248 Volkswagen 13232 Total 13672 Other Volvo 30 Other 732 Total 762 Total 97685 CV-Commercial Vehicles (trucks) over 3.5t ** China Other Chrysler Other 1 DAF DAF 2429 Daimler Mercedes 5059 Fiat Fiat 150 Iveco 2445 Total 2595 Ford Ford 48 GM Chevrolet 1 Opel 13 Other 2 Total 16 Japan Mitsubishi 198 Nissan 51 Other 135 Total 384 Korea Daewoo MAN MAN 3720 PSA Citroen 6 Peugeot 40 Total 46 Renault Renault 1388 Other 3 Total 1391 Scania Scania 1758 Toyota Toyota 12 Volkswagen AG Volkswagen 64 Volvo Trucks Volvo 2048 Other 603 Total 20174 BC-Buses & Coaches over 3.5t DAF DAF Daimler Mercedes Others Total Fiat Fiat Iveco Total Ford Ford

Auto Monitor

EUROPEAN SALES

19 800 129 929 17 728 745 8

75 503

-13.33 -37.97

983 3696

182

-93.41

291

62 52 49 74 175

-38.71 90.38 28.57 -28.38 22.86

783 717 649 614 1980

7896 7 7676 2962 2 10647 9113

16.11 14.29 24.77 5.91 -100.00 19.49 22.13

86522 163 130074 33670 15 163922 122900

24 4217

-25.00 29.69

219 59591

18 4259

-38.89 29.09

138 59948

339 1 0 167 1405 2600 9 35 730 4947

74.04 0.00 -29.94 -5.20 8.31 -66.67 54.29 -31.64 -2.43

8513 23 38 1504 15438 35595 76 587 7677 60938

302 81 43 426 55 10008 8851 18859 958 13465 14423 2727 295 144 281 10871 11591 22 736 758 86459

-24.83 -30.86 -44.19 -27.93 -96.36 0.41 14.36 6.96 -0.84 13.79 12.82 -15.73 -83.73 0.00 -11.74 21.72 17.95 36.36 -0.54 0.53 12.98

2679 670 293 3642 166 116873 115438 232311 9723 163556 173279 25207 902 1181 2505 129383 133971 409 9274 9683 1084057

0 2036 4920 148 2314 2462 46 1 1 0 2 160 58 125 347

700.00 23.75 -12.07 8.00 10.66

10 24414 43370 2697 21511 24208 372 11 102 7 120 1794 539 1264 3597

2878 6 12 18 1285 30 1315 1559 17 128 1390 464 17582

29.26 0.00 233.33 155.56 8.02 -90.00 5.78 12.76 -29.41 -50.00 47.34 29.96 14.74

32597 57 286 343 18589 42 18631 20408 149 969 24554 5501 199244

11 753 105 858 14 698 712 142

72.73 6.24 22.86 8.28 21.43 4.30 4.63 -94.37

281 4697 1263 5960 330 4641 4971 861

19.30 2.83 1.35 5.66 5.40 4.35 0.00 1200.00

Renault Scania Volkswagen Volvo Trucks Others Total

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

2011 AUG

% CHANGE

YEAR TILL DATE 2011

-100.00

0.00

392 6 398 5 15 20 93 127 25 239 562 3167

292 17 309 0 6 6 33 115 36 101 634 2961

34.25 -64.71 28.80

1926 183 2109 18 120 138 236 1079 198 1691 4171 21717

Total Commercial Vehicles (Trucks) & (Buses) over 3.5t China Other Chrysler Other 1 DAF DAF 2448 Daimler Mercedes 5859 Others 129 Total 5988 Fiat Fiat 167 Iveco 3173 Total 3340 Ford Ford 56 GM Chevrolet 1 Opel 13 Others 2 Total 16 Japan Mitsubishi 198 Nissan 51 Others 137 Total 386 Korea Daewoo Hyundai Total MAN MAN 4112 Others 6 Total 4118 PSA Citroen 11 Peugeot 55 Total 66 Renault Renault 1481 Others 3 Total 1484 Scania Scania 1885 Toyota Toyota 12 Volkswagen AG Volkswagen 89 Volvo Trucks Volvo 2287 Others 1165 Total 23341

150.00 233.33 181.82 10.43 -30.56 136.63 -11.36 6.96

0 2047 5673 105 5778 162 3012 3174 188 2 2 0 4 160 58 127 349

300.00 23.75 -12.07 7.87 10.60

10 24695 48066 1264 49330 3027 26152 29179 1233 12 103 7 122 1794 539 1284 3617

3170 17 3187 6 18 24 1318 30 1348 1674 17 164 1491 1098 20543

29.72 -64.71 29.21 83.33 205.56 175.00 12.37 -90.00 10.09 12.60 -29.41 -45.73 53.39 6.10 13.62

34523 183 34706 75 406 481 18825 42 18867 21487 149 1167 26245 9672 220961

1721 2939 990

19.41 8.95 8.69

21128 27849 9916

11 2142 963 3 966 1530 1283 210 11792

63.64 32.73 5.40 0.00 5.38 14.90 48.95 25.24 19.97

108 24291 14814 38 14852 20400 23389 2307 144285

15 427 129 556 557 390 6 396

5 464 105 569 472 276 17 293

200.00 -7.97 22.86 -2.28 18.01 41.30 -64.71 35.15

240 2600 1263 3863 3533 1806 183 1989

127 239 329 2284

115 101 362 1917

10.43 136.63 -9.12 19.14

1079 1690 2698 15157

19.93 6.64 22.86 7.13 11.70

21368 30448 1264 31712 13449

HCV-Heavy Commercial Vehicles (trucks) over 16t ** China Other DAF DAF 2055 Daimler Mercedes 3202 Fiat Iveco 1076 Ford Ford GM Chevrolet Japan Other 18 MAN MAN 2843 Renault Renault 1015 Other 3 Total 1018 Scania Scania 1758 Volvo Trucks Volvo 1911 Others 263 Total 14147 HBC-Heavy Buses & Coaches over 16t DAF DAF Daimler Mercedes Other Total Fiat Iveco MAN MAN Others Total Renault Renault Scania Scania Volvo Trucks Volvo Others Total

2010 AUG

Total Heavy Commercial Vehicles (Trucks & Buses) over 16t China Other DAF DAF 2070 1726 Daimler Mercedes 3629 3403 Other 129 105 Total 3758 3508 Fiat Iveco 1633 1462 GM Chevrolet Japan Others 18 11 Total MAN MAN 3233 2418 Others 6 17 Total 3239 2435 Renault Renault 1080 963 Other 3 3 Total 1083 966 Scania Scania 1885 1645 Volvo Trucks Volvo 2150 1384 Others 592 572 Total 16431 13709

19.59 3.28 22.86 3.63 3.09 5.35 5.23 -70.21 -50.00 550.00

63.64

108

33.71 -64.71 33.02 12.15 0.00 12.11 14.59 55.35 3.50 19.86

26097 183 26280 14879 38 14917 21479 25079 5005 159442

*EU 15 + EEFTA (Iceland, Norway & Switzerland) + Western Europe (10 new members) â&#x20AC;&#x2DC;(*) EU27 including Bulgaria and Romania; data for Malta and Cyprus not available

Auto Monitor

THE OTHER SIDE

Getting Personal with Nagaraja Prakasam, MD, SSEA, CDC Software If not in the IT industry, where would you be? I would be running a farm What car do you drive? What do you dream of driving? Tata Manza. Would love to ride in a “chauffer driven electric stretched car” Your most recent indulgence… A three-day retreat on ‘What Is Right Action?’ at J.Krishnamurthy foundation at The Valley School in Bangalore What are you currently reading? ‘Freedom from the Known’ by J Krishnamurthy What is Mr Prakasam doing when not talking IT industry? Spending time with my children—be it sipping the tea that my four-year old daughter brews in her play set to interpreting my fourth month old boy’s cueing Outdoor activity you would miss office for Indulging in nature—beach to mountains Where did you go for your last holiday? Cruising in the Aegean sea You get angry when… Confronted with inefficiencies What is the one thing you would like to change about you? Would like to get more aware of myself Best thing to have happened to you… Exposure to Association for India’s Development, a non-profit organisation in 1999. Volunteering for them changed perception of life and world

An experience I won’t forget…

Illustration: Sachin Pandit

Many. Here are some on top of the head—feeling the zero gravity while sky diving; encounters with sting-rays during snuba diving; watching an active volcano up close; childhood bullock-cart rides on my grandfather’s farm and many more.

16 - 30 November 2011

In Person Nagaraja Prakasam is a veteran in the industry with 19 years of industry experience, including 15 years in a variety of management roles in the US and in India at CDC Software. His expertise lies in product development, sales, managing offshore R&D, services and support operations for the enterprise software companies. He pioneered the launch of a sales arm in India to market CDC Software’s CRM products and accomplished tremendous success by acquiring 22 prestigious customers including ICICI Group, Max New York Life, SBI Life Insurance, TTK Services and CIBIL. With his proven success in India sales, Prakasam took over additional responsibilities to oversee sales operations for the entire South and uccessfully launched CDC Factory Southeast Asia region. In addition to CRM, he successfully nd achieved 90 perand CDC Supply Chain products in the region and echnology cent growth. Earlier in his career, he managed technology development at CDC Software and played a key role in -server migrating to Internet technologies from a client-server mlining architecture. He was also instrumental in streamlining and centralising development processes for the coman 26 pany’s enterprise suite of products with more than product releases to his credit. He is frequently asked to speak on a variety off techces, nology and leadership topics at major conferences, business/IT schools and trade shows globally. Ass part of the expert panel at ‘Tata-NEN Hottest Startups Awards’, he judged many start-ups for these awards. He iss also a member of TiE-Bangalore/Atlanta chapter for many years and an enthusiast in its Clean Tech Special Interest Group. He is a part of the NASSCOM captive forum and member of India Angel Network. Currently residing in Bangalore, he holds a BE degree from Thiagarajar College of Engineering, India, and an MBA degree from the San Diego/ Kennesaw State University, United States.

Regn. No. MH/MR/WEST/20/2009-2011. RNI No. MAHENG/2000/11414 Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001. Date Of Mailing:16th & 17th Fortnightly Issue. Date Of Publication: 13th of Every Month