Auto Monitor - 16-31 December 2010 by Infomedia18

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

Auto Monitor Vol. 10 No. 23

16-31 December 2010

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

NEW MODELS DRIVE TWO-WHEELER DEMAND Pg 14 GROWTH IN FY11

Pg 08

Toyota looking at BRIC countries for Etios sedan

NEWS IN BRIEF

Shobha Mathur Bangalore

Yamaha adds 998cc FZ1, 153cc SZ-R to its line-up India Yamaha Motor (IYM) recently unveiled two new bikes – 998cc FZ1 and 153cc SZ-R, priced at `870,000 and `55,000 respectively. FZ1 is available in two colour options – black and white, while the SZ-R is being retailed in three colours – quality black, quality red and quality blue. CEO & Managing Director, IYM, Hiroyuki Suzuki said the company has been constantly shifting gears to transform the market from utility to pleasure & lifestyle.

New BMW 520d debuts

Premium luxury carmaker, BMW India, recently launched the 520d. Priced at `36,90,000 (all India, ex-showroom), the new BMW 520d delivers an ARAI-approved mileage of 18.4 kilometres to a litre of diesel. The sedan will be CKD (completely knocked-down unit) produced at the BMW plant Chennai.

DATA MONITOR Domestic Sales Sector

Apr-Nov 09

Apr-Nov 10

Change

1,220,008

1,611,352

32.08%

304,818

411,989

35.16%

286,758

339,551

18.41%

6,011,012

7,684,503

27.84%

TOTAL

7,822,596

10,047,395

28.44%

Sector

Apr-Nov 09

Apr-Nov 10

Change

290,477

285,713

-1.64%

26,119

46,543

78.20%

99,652

178,755

79.38%

Exports

735,112

1,034,041

40.66%

TOTAL

1,151,360

1,545,052

34.19%

* Source: SIAM / ** all sub segments considered

` 50/-

AUTONOMICS

INTERVIEW ‘IDENTIFYING KEY PARTS, MATERIALS FOR LOCALISATION IS A KEY TARGET’ Takao Nojiri, Joint Managing Director, R&D Center, DENSO Sales India

56 Pages

oyota Motor’s (TMC) entry-level sedan, the Etios, could wind its way into the BRIC countries (Brazil, Russia, India and China) from India, after being customised for the requirements of the targeted markets. The car was launched in the Indian market in the fi rst week of this month. Company officials in the know told Auto Monitor on the sidelines of the Etios launch in Bangalore that the Japanese carmaker is still studying the viability of either establishing a manufacturing capability in all the BRIC countries for the Etios model or exporting it directly from India after undertaking modifications. President a nd Representative Director, TMC, Akio Toyoda was, however, clear that the company’s primary focus at the moment was to market the Etios successfully in the Indian market and

subsequently look at exports. The Indian unit of TMC, Toyota Kirloskar Motors (TKM), does not have a presence in the small compact car segment in India that accounts for almost 70 percent of the passenger car sales in the country. Therefore, it is keen to establish its foothold in this volume segment fi rst. ‘The Etios is mainly for India as we don’t have any model in the B segment and this is a big mar-

ket,’ confi rmed Toyoda. For Toyota’s future game plan, the ASEAN region – particularly Thailand, Philippines, Indonesia and India – are of special significance as they offer a large market potential for further expansion. The carmaker already holds a dominant position in Thailand in cars and pick-ups and is now fan-

Local Development

ning out to become a volume player in India first with the Etios, followed by its hatchback Etios Liva that

Clutch Auto to invest `100 crore, to shift base to Bhiwadi Nabeel A Khan New Delhi

The Etios sedan has been launch with a localisation level of 70 percent, with 100 India-based auto part makers supplying the required components and systems. Managing Director, TKM,

Contd. on P32

Tata’s new bonanza for Nano

ata Motors (TML) has offered a ‘happiness guarantee’ scheme in order to boost sales of its mini car, Nano. The Tata Nano will now come with a four-year/ 60,000-km (whichever is earlier) manufacturer’s warranty, at no extra cost. Besides being applicable on new deliveries,

lutch Auto would shift its existing manufacturing facility in Faridabad to a new location in Bhiwadi, Rajasthan. The new plant would come up at an investment of around `100 crore, said Managing Director, Clutch Auto, Vijay Krishan Mehta. The company would initiate the process of shifting its existing facility to the new location by March next year. ‘We are setting up a new plant in Bhiwadi on a plot of over 12 acre. We hope to double our existing capacity once the new facility

is based on the Etios platform. At present, the Etios sedan comes equipped with a fi vespeed manual transmission. On asked about the lack of an automatic transmission option, Singh remarked that the automatic transmission sales in India were low at about two percent, and hence its absence in the sedan in the initial stages. But when demand warranted, it would be introduced at a later stage. Meanwhile, talking about the design highlights of the Etios and Etios Liva, Noritake explained that the difference between the two models was primarily in their length. A similar flat floor as offered on the Etios would be available in the Etios Liva hatchback to ensure safety and convenience of customers.

Contd. on P40

is fully operational,’ Mehta said. Explaining the decision, Mehta said, ‘Rajasthan is a power-surplus State and we will have

better floor management, better productivity. We have 3.8 acres of land here (Faridabad) but we are

Contd. on P35

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CONTENTS CORPORATE Hyundai to launch two new models in 2011, evaluating third facility

Turbo Energy to develop turbocharger components for Euro V norms

Premium motorcycle sales increase 52 percent in November

Hyundai Motor India is considering setting up a third manufacturing facility in India and launch a new compact car positioned just below the Hyundai Santro

Turbo Energy is ramping up its production capacity and developing new turbocharger components for exports to help its customers meet the Euro V emission norms

Motorcycles in 125 cc and above segment clocked 52.18 percent growth in the domestic sales in November this fiscal as compared to the same month in last fiscal

GLOBAL WATCH BMW outpaces Audi, Mercedes in the US

Daimler invests in South African facility

US Govt proposes new rules for rear visibility in cars

Ford F-150 pick-ups shipments delayed by parts shortages

BMW outpaced sales growth of competitors Audi and Mercedes-Benz last month as the revamped 5 Series sedan and new X1 sport utility vehicle attracted buyers

Daimler is likely to inject $290 million into its South African facility over the next four years, providing a boost to the country’s car manufacturing industry

Rear-view cameras could become more common in future cars and trucks under new rules that the Government recently proposed

Ford is delaying the shipment of some of its 2011 F-150 pick-ups because of parts shortage. The shortage affects a ‘small population’ of trucks and will be resolved soon

Brakewel Automotive looking at evolving into braking systems supplier

Growing SUV segment catches OEM fancy

Credit, self purchase to remain predominant: CVO report

Brakewel Automotive Components is planning to increase its capacity for clutch facings and diversify into manufacturing and supplying disk pads

Even as the Western markets tilt towards compact cars, manufacturers in India seem to be renewing their focus on Sports Utility Vehicles

THE OTHER SIDE

Corporate fleet acquired through credit may continue to be a predominant mode of building up the fleet, according to a study jointly conducted by TNS Sofres and Arval

M&M working on complimentary product strategy for Mahindra, Swaraj 24 M&M’s FES is implementing expansion to take its tractor capacity to more than 300,000 tractors and help Mahindra and Swaraj brands to gain marketshare

Messung pinning hope on growing automation in automotive sector

Diya Garware Ibanez, Managing Director, Garware Motors

Messung Systems is hoping to gain larger share of automation drive taking hold in the automobile and auto component sectors

Tata Motors launches BS-IV compliant Winger Platinum

A graduate from the Cornell University, USA, Diya started her career as an entrepreneur and is the founder of Garware Elastomerics and Garware Bestretch

Tata Motors (TML) recently launched the BS-IV compliant Winger Platinum at `7.4 lakh primarily targeting the growing needs in the taxi and hospitality segments

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Auto Monitor

Marketing & Sales Associate Vice President: Sudhanva Jategaonkar Sales Co-Ordinator: Akshata Rane

Auto Monitor

16 - 31 December 2010

CORPORATE

Hyundai eyeing third plant in Gujarat, two new models in 2011 Shobha Mathur Chennai

yundai Motor India (HMIL) would consider setting up a third manufacturing facility and launch two new models by next year. The new compact car would be positioned just below the Hyundai Santro and would be smaller than the Santro in terms of engine displacement and price. Hyundai is investing `800 crore in design and development of its new compact car at its R&D centre in Namyang, South Korea. Last November, Managing Director and Chief Executive Officer, HMIL, Han Woo Park had said that the development of the new small car would take around 24 months. While unwilling to disclose whether Hyundai’s new compact car would figure among the new models to be launched next year, Director – Marketing and Sales, HMIL, Arvind Saxena said, ‘I would only like to say that the development of the compact car is on course.’ There have been speculations of HMIL scouting for land for setting up a third plant, possibly in Gujarat, with interactions between Hyundai and the State Government officials believed to be underway. Company officials are however, tight-lipped on any possibility of setting up a new facility in the country. This development follows close on the heels of Ford India exploring opportunities of setting up a second manufacturing facility in Gujarat. Ford has a

production unit at Maraimalai Nagar, near Chennai, while HMIL has two manufacturing plants at Sriperumbudur, near Chennai with a production capacity of 600,000 units per annum. ‘Let me just say that we will not look at building a new plant for another one year. At present, the production capacity in our two existing plants near Chennai can be stepped up by another 70,000 units with some minor modifications in the short-term,’ said Saxena. Park had said earlier that Hyundai’s third plant would come up when the company’s domestic market would account for about 60 to 70 percent of its total sales, necessitating scaling up of production capacity.

manufacturing plant. He expects HMIL’s investment to be in the range of `2,500 crore for developing the entire land area including its manufacturing facility. HMIL, according to company officials, has invested `4,191 crore in its fi rst phase of investment between 1996 to 2006 in India and another $1 billion (`4,506

ity as an export hub. The State has multiple ports and cars are already being exported from the Mundra Port that will be beneficial for Hyundai’s car business,’ said Nagporewalla. But company officials said that their vendors negotiated for land independently as they were a separate corporate entity and

Gujarat

Domestic Sales To Increase HMIL is expected to close CY 2010 with the domestic-export break-up of 55:45. Domestic sales are expected to go higher at around 62 percent by next year, according to Saxena. Hyundai’s existing two plants occupy 535 acre of land with a built-up area of around 260 acre, with each plant occupying 130 acre. The company is therefore expected to look at a similar 100 to 500 acres of land for a new plant. According to Head Auto P ract ice, K PMG, Yezd i Nagporewalla, Hyundai could follow the model of a vendor park for most of their component manufacturers around their

crore) thereafter, in the second phase. Its second phase is expected to end in 2013. ‘Most automobile manufacturers prefer to set up their vendor base in close proximity to their production units and Hyundai will be looking at taking its suppliers to Gujarat. Moreover, the State offers several advantages in terms of its coastline that will be suitable for the carmaker to develop the manufacturing facil-

Hyundai did not arrange the land for them. Gujarat offers competitive labour rates. In comparison, Tamil Nadu has been straddled with power shortages and recurring labour problems and the State is believed to be considering legalising of corporate trade unions. At the national level, while amendments in labour policies to reduce labour management confrontations have been under

consideration for some time now, a question mark hangs over their implementation.

Diesel Facility? Besides, mulling over a new plant, HMIL is also conducting a feasibility study for setting up a new diesel engine facility in India, that is likely to be completed by February next year. At present, the Hyundai i20, Verna, Sonata and Santa Fe offer diesel versions. HMIL gets the 1.1-litre diesel engines from Hyundai Motor Company for the export model of i10. Saxena is confident of closing the current calendar year with sales of 600,000 passenger cars for Hyundai. From January to November, the carmaker sold 556,593 cars with domestic sales contributing 330,549 units and exports 226,044 units. In 2009, Hyundai’s car sales were 559, 870 units, a growth of 14.4 percent over the previous calendar year. ‘In exports, we added Australia and Vietnam this year bringing the total to 118 countries. But Europe still remains a concern as economies are not doing well,’ said Saxena, while clarifying that Hyundai was not looking at any new markets in the coming year, with the focus more on strengthening existing markets. ‘With rising input and commodity costs, it would be unviable to continue at the same prices, so at a rough estimate, our price hike should be in the range of 1.5-2 percent. But we will try our best to minimise the price rise,’ assured Saxena.

Auto Monitor

16 - 31 December 2010

INTERVIEW

‘Identifying key parts, materials for localisation is a key target’ DENSO, one of the leading automotive suppliers in the world, recently announced the setting up of a technical centre in Gurgaon, which will start operations by end-2011. The Japanese major would invest approximately ¥3 billion (around $35.5 million) in the new centre and recruit about 70 engineers by 2015. While construction continues on the site, the company has already started offering on-site support to its customers in India. Auto Monitor recently caught up with Joint Managing Director, R&D Center, DENSO Sales India (DSIN), Takao Nojiri to learn more on the company’s plans for the Indian technical centre. Excerpts: Deepangshu Dev Sarmah With the announcement of new technical centres in India, followed by one in Brazil, DENSO seems to be focussing big on innovation. We are currently investigating a lot of automotive products. Till recently, our main focus used to be the United States, Japanese and European markets. The automotive markets are now shifting to India, China and Brazil. Moreover, our customers, including Maruti Suzuki India (MSIL), are demanding that we be present in the Indian market and offer them on-site support. This is a big opportunity for our business to be able to provide them with our R&D capabilities. How do you propose to address the requirements of the other OEMs in India – be they Japanese, European or American manufacturers? Most of our Japanese customers are developing their own engineering, with a focus on

some of the customer requirements or needs will be expanded. End consumers are demanding more comfort, better driveability in the vehicles they purchase. There is a demand for improved functionality among Indian buyers as well. These are factors that are going to drive our growth and expansion in India. In terms of manpower, we have a target to recruit 70 engineers by 2015. The proposed technical centre in Gurgaon aims at improving the company’s customer services and product competitiveness. How do you intend to go about this, and how do you plan to promote local development and designs? Cost is one of the key aspects in the Indian automotive industry. Usually, the main product is

don’t investigate on such parts or materials. But one of the key targets for the Indian R&D centre would be to investigate such parts and materials that can be localised. This would help in making our products more competitive in the market.

Yes, we are already implementing that but it too early for us to comment on it.

Contd. on P38

Is there already a process in place to identify such materials? Could you give s an idea about these materials?

improving their local capabilities. There is a larger demand for locally made products. It is with that intention that we have decided to set up a technical centre in Gurgaon. Apart from MSIL, we cater to the demands of Toyota K irloska r Motors (TKM) as also other OEMs, including Tata At DENSO, we are not Motors (TML). We just focussing on passenger will of course, need to expand our activities vehicles, but also beyond these comtwo-wheelers. And India is a panies and look at all large two-wheeler market other manufacturers present in this growing market. What is the scope of expansion at the India technical centre? Vehicle sales in India have been witnessing a rapid growth. At DENSO, we are not just focussing on passenger vehicles, but also two-wheelers. And India is a large two-wheeler market. Because of this drastic growth,

designed in Japan and imported to India. But fluctuation in exchange rates lead to decreased competitiveness. This made us believe that we need to look at localising those products that were being imported from Japan. In India, there are a whole lot of suppliers that are not only providing parts, but also materials. We normally

Takao Nojiri, Joint Managing Director, R&D Center, DENSO Sales India

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More Driving Pleasure

EDITORIAL Breaking New Grounds T

he future of mobility, as many argue, lies in electric vehicles and hybrids. Much is being talked about the electrification of vehicles and how countries world over are slowly, but surely, moving towards a future that is clean and less onerous on resources. Japanese major, Toyota Motor (TMC) made an early start in the hybrid game, and has till date sold over a million hybrid cars. In comparison, American and European carmakers have been somewhat slow to take off – although many of them now look set to launch their products in the EV and hybrid spaces. The most prominent among them are the plug-in electric hybrid Chevrolet Volt and the all-electric Nissan Leaf, likely to be launched by this month-end or early next year. This may not mean a big, perceptible change in personal mobility yet, but they certainly seem to be heralding a new era in personal transportation. And in about two years’ time, most global manufacturers would have electric or hybrid vehicles on the market – ones that are not just ‘golf-cart likes’, but vehicles that are competitive in terms of looks and performance. However, while the technology is now ready, it is not yet clear if consumers are ready to accept these vehicles with open arms. Consulting fi rm, JD Power and Associates recently indicated that demand for hybrid and electric vehicles may be over-hyped. Getting

large numbers of buyers to switch from conventionally powered cars may be difficult, it said. Manufacturers too, aren’t too optimistic about sales. GM for instance, plans to sell only 10,000 Volts in the fi rst year of production. Internal combustion engines are going to stay for many more years to come, believe experts, and alternative fuel vehicles will only make up for a small share of the market in the foreseeable future. What is interesting though – in the wake of EVs and hybrids taking-off in the desired manner – is to note a shift in the suppliers’ domain. Not too far away, battery manufacturers and electric powertrain manufacturers will comprise the new Tier-I. The success of the EV industry would primarily depend on the development of battery technology – offering faster charge and longer range. The other major worry, of course, is the higher price that electrics will command compared with conventional vehicles. A recent report I stumbled upon noted that electric vehicle development can primarily be achieved on the back of ‘better and unconventional component supplies and stable infrastructure support’. Today, in the want of better technology, we have collaborations increasing between the suppliers and OEMs – Bosch formed a JV with Samsung, GM got LG Chem in South Korea, and Volkswagen works with Toshiba in Japan

for batteries. And this is likely to increase further. In India though, barring M&M’s takeover of Reva Electric Car (RECC), there are no other visible developments in the EV space. Battery manufacturers in India are probably not sure if this is the right time to invest in EV technology (read lithium-ion batteries). Global launches over the next few years, and their successes, would in all likelihood, offer Indian manufacturers the required confidence to venture into EV technologies. N.B.: On a personal note, after being involved with over 170 fortnightly issues of Auto Monitor, it is time for me to move on – to take on new challenges and scale different heights! Here’s wishing the country’s premier automotive business magazine many more years of unprecedented success. Till we meet again...

Deepangshu Dev Sarmah deepangshud.sarmah@infomedia18.in

IMAGE of the fortnight

FORTNIGHT’S QUOTES ‘As in China, we want to be ahead of Toyota and Honda in India’ Kiminobu Tokuyama, Managing Director and CEO, Nissan Motor India

The Volkswagen Group continues to have its sights firmly set on capturing pole position in the automotive industry

‘With oil prices increasing, the future is electricity. The objective is to get into sustainable and environment friendly transport system’

Martin Winterkorn, CEO, Volkswagen

R Chandramouli, Chief of Operations, Mahindra REVA

‘When the customer decides ‘This is the car I want,’ we want to be that full-line maker, who has the answer for that customer’

‘This marks the beginning of GM’s next chapter in India’

Akio Toyoda, President, Toyota Motor, on electric and hybrid cars.

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

Karl Slym, President and Managing Director, GM India, at the opening of their new flexi-engine plant in Talegaon, Maharashtra.

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

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

Jaguar XF Diesel S hits Indian roads Jaguar, a wholly owned subsidiary of Tata Motors, recently launched the XF Diesel S in Delhi. The new car, powered by a 3.0litre AJ-V6 diesel engine, is priced at `48.37 lakh (ex-showroom in Delhi). The petrol variant of the XF, which was launched in 2009, has met with great success, the company claimed. The new car is powered by a twin-sequential turbocharged engine with 275 ps of peak power and 600 Nm of torque and is fitted with 18-inch alloy wheels, with a full-size spare wheel as standard. The XF Diesel S has been customised by Jaguar engineers in the UK for the Indian market and is equipped with a number of premium features like soft grain leather seats, phosphor blue halo illumination and interior mood lighting, seven-inch full colour touch-screen display and Jaguar Smart Key SystemTM with keyless entry and start. The Jaguar XF Diesel S was unveiled by British High Commissioner to India, Sir Richard Stagg, Head – Premier Car Division, Tata Motors, Rohit Suri and MD, AMP Motors, Gurmeet Singh Anand at a launch organised at the British High Commission in New Delhi.

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Auto Monitor

16 - 31 December 2010

CORPORATE

Turbo Energy to develop turbocharger components for Euro V norms Shobha Mathur Chennai

urbo Energy (TEL) is ramping up its production capacity and developingnewturbochargercomponents for the exports to help its customers meet the Euro V emission norms. TEL, a supplier of turbocharger components to OEMs in the passenger car, commercial vehicle and generator segment, has embarked on capital expenditure programme of around `50 crore to strengthen its product portfolio. The investment would be funded primarily through term loans spread over five years. TEL is a joint venture between the TVS Group and BorgWarner Turbo Systems of Germany with two-thirds stake held by TVS Group. TEL is fi rming up plans to ramp up production capacity at both its upstream and downstream

plants including a manufacturing facility at Sholinghur in Chennai and an assembly plant and R&D centre near Mahabalipuram. The expansion would help the company meet the expected surge in demand for turbocharger components for diesel vehicles in the domestic and international markets. The present capacity at the Sholinghur and Mahabalipuram plant stands at around one million units per annum which will be ramped up to around 1.5 million units each per annum over the next five years. Explaining the rationale behind setting up an assembly plant, Director, Finance, Turbo Energy, S Ravindran said that the long distance to the manufacturing facility for prospective customers necessi-

tated an assembly unit closer to the city. Currently, Turbo Energ y exports turbocharger components for Euro IV compliance to its collaborators in the US and Europe. It is now moving to the next level and its research and development centre at Chennai is developing turbocharger components for meeting Euro V emission requirements. The R&D centre currently modifies turbochargers to suit imported diesel engines for many of its OE customers. Ravindran sees opportunities for the company’s turbocharger assemblies in the domestic market as the diesel vehicle segment grows with changing emission norms and subsequent demand for diesel powered vehicles. ‘Exports of Euro V compliant components will commence within a year,’ Ravindran told Auto Monitor while pointing out that exports constituted 15 percent of the total revenues of `500 crore.

Efficiency Gains Turbocharger assemblies when fitted in diesel engines, enable vehicles to meet advanced emission norms. According to S Ravindran, turbocharger assemblies improve the engine efficiency by an average of up to 20 percent. Due to high precision and technology intensive nature of the product/solution, especially the ones for passenger car applications, turbocharged diesel engines in cars are faster than truck engines, enabling 120,000 revolutions per minute (rpms) in case of a typical turbocharged diesel engines for passenger cars as compared to around 70,000 rpm’s for a truck engine. In FY 11, the company is expecting to clock topline of around ` 600 crore while maintaining the export contribution at around 15 percent. The exports are likely to pare up 2011-12 onwards, after the Euro V components are developed. Talking about the diesel passenger car market, Director General, Society of Indian

Automobi le Ma nufacturers (SIAM), Vishnu Mathur said that out of the 18 million passenger cars (excluding scrappage) in the market today, about 32 percent were powered by diesel engines. In comparison, the entire CV and tractor segment is diesel powered. ‘For the last five years, the percentage of diesel cars has remained stagnant while their volumes have been rising,’ he remarked. However, Mathur pointed out that the pricing differential between petrol and diesel had witnessed a downslide over the last few years. ‘In 1999, petrol used to cost ` 23.80 a litre while diesel was priced at ` 9.94 per litre, a difference of ` 14, enabling diesel to be 58 percent cheaper. Today, one litre of petrol is priced at ` 52.90 while the same quantity of diesel costs ` 37.75, a difference of ` 15 making the diesel cheaper by just 29 percent,’ he added. Attributing the price differential to subsidised rates versus market oriented pricing for diesel, Mathur feared that if diesel prices continued to be market driven, a stage could come when they could impact the diesel car market. This would lead to petrol cars becoming more viable and a subsequent reduction in the number of diesel cars on the road. But Rav indra n felt that globa lly, India and Europe possessed the largest markets for diesel cars while America was yet to make its mark in it. The company is also looking at growth opportunities in the less than 35 HP tractor segment in India. This segment currently dominates the Indian market. These low HP tractor engines are not equipped with turbochargers. Relatively smaller farms in India do not necessitate use of very powerful engines in tractors compared to powerful and

sophist icated t ractors deployed for the large farmlands in the US or Europe running into hundreds of hectares. But as emission norms get more stringent in the tractor segment in India, these agricultural equipments are expected

to graduate to more powerful engines fitted with turbocharger assemblies. This move is expected to be triggered by need for fuel-efficient engines over the next fi ve to ten years. Globally, most tractors are above 50 HP capacity and already use turbocharger assemblies. Some of the imported, high-end tractors sold in India by players like John Deere and CNH offer turbocharged engines. Turbo Energy has invested around `250 crore in its facilities till date. It established a small manufacturing facility at Uttarakhand early this year for servicing Ashok Leyland’s requirements. The company’s R&D centre currently employs around 60 skilled professionals and the company plans to shore up to around 100 employees over the next five years. The company also plans to focus on strengthening its supplier and sub-contractor base to ensure uninterrupted parts supply for its expansion program. Ravindran explained t hat t u rbocha rg-

er assemblies were made up of about 35 to 50 parts and all could not be manufactured in-house. At present, TEL manufactures less than 10 critical components in-house and sources remaining from its 55–odd suppliers and sub-contractors. These suppliers are in turn facing capacity constraints and fi nancial issues. TEL is trying to support them by facilitating access to funds from banks and providing them with technology and knowledge to upgrade their manufacturing processes. Talking about the latest trends in turbocharger assemblies, Ravindran pointed out that as engines bec a me sma l ler and more efficient, mater ia l compositions for turbochargers were also morphing from iron to stainless steel to withstand high revolutions and high temperatures of around 850 to 1000 degrees in Europe. In India, existing turbochargers were not able to withstand beyond 750 degrees temperature and hence stainless steel would be increasingly tapped for sophisticated turbocharger assemblies going forward.

20 - 26 January 2011 Bangalore, India

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

at s u Visit 2011 X E T M I

Auto Monitor

16 - 31 December 2010

AUTONOMICS

New models drive two-wheeler demand growth in FY11 Exhibit 1 : Impact of new model launch in monthly motorcycle sales volumes

Subodh C Mishra Analyst, CRISIL Research Hetal Gandhi Team leader, CRISIL Research Manoj Mohta Head, CRISIL Research

CRISIL Research expects domestic twowheeler demand to grow by 20-22 percent in FY11 driven by rising new model sales. Demand for motorcycles will grow by 18-20 percent as competitive pricing of new models turned customer preference towards these models. Scooter demand will grow by 32-34 percent as the entry of Mahindra & Mahindra (M&M) in the segment widened options for customers, supply from Honda increased, and players positioned scooters as family vehicles.

Source:CRISIL Research

Exhibit 2

Slew of model launches drive motorcycle demand growth With 10 model launches since August 2009, demand for motorcycles grew by 26 percent in April-October 2010, as compared to 15 percent in the same period in the previous year. Customer preference turned towards the new models since they were priced competitively for a comparable set of features vis-à-vis the existing models. Also, the average waiting period for the existing models was one to two months, mainly because the leading manufacturer faced capacity constraints. The share of new models in total motorcy-

Note: Size of the bubble indicate sales volumes. Segment growth refers to y-o-y growth from April-October 2010.

cle sales therefore increased to 20 percent during April-October 2010 from only seven percent in April-October 2009. Seven of the new models were launched in the executive category; the category, which comprises models priced between `40,000-50,000 per unit, contributes 64 percent of total motorcycle sales (Ref: Exhibit 1).

Exhibit 3

Source:CRISIL Research

Within the executive category, Bajaj Auto (BAL) introduced Discover M and Discover 150 at attractive price points, drawing a good response from customers. As a result, Bajaj Auto’s marketshare increased to 22 percent in April-October 2010 from 15 percent in the same period of the previous year. Hero Honda (HHML), the market leader in the cate-

Demand for motorcycles is likely to grow by 18-20 percent as competitive pricing of new models turned customer preference towards these models while overall domestic twowheeler demand may grow by around 20-22 percent in FY11

gory, with volume-generating models Splendor and Passion, lost marketshare from 76 percent to 65 percent during the period (Ref: Exhibit 2). Strong rural demand and stable urban demand for motorcycles, with improved

Contd. on P40

Exhibit 4: Impact of new model launch in monthly scooter volumes

Source:CRISIL Research

Sustained revenue growth amidst buoyant volume off-take for the automobile industry in Q2FY11 CRISIL Research

he automobile industry’s revenues grew by 36.4 percent during the second quarter of FY11 (y-o-y), on a low base, driven by restored business and consumer confidence and a favourable fi nancing environment. Also, delaying implementation of the BS IV emission norms in Tier-I cities scheduled in October 2010, with poor availability of technical assistance for such vehicles has resulted in more than expected sales for commercial vehicles. Further, increased focus of players on rural markets and competitively priced model launches

has enabled buoyant growth in cars and two-wheelers. A rise in vehicle prices and increased sales of higher-priced vehicles boosted sales realisations on a y-o-y basis.

Automobiles Moderate rise in volumes, owing to festive season, will sustain revenue growth q-o-q across the commercial vehicle, car and two-wheeler segments in Q3FY11. Automobile revenues are estimated to grow by 22-23 percent y-o-y during Q3FY11. We do not expect prices of automobiles to increase in Q3FY11, except BS IV commercial vehicles, since manufacturers have increased vehicle prices by 5-7 percent between January and

October 2010 (Ref: Exhibit). Although the recent price increases are likely to stabilise

operating margins on a q-o-q basis, the margins will be lower on a y-o-y basis 280-300 bps, given

that prices of raw materials such as steel, aluminium and rubber have increased on a y-o-y basis.

~ Advertorial ~

LANXESS Rubber Day, New Delhi: Driving growth and delivering safety

ANXESS concluded a successful Rubber day at Hotel Imperial, New Delhi on 3rd December, 2010. The one day symposium consisted of thought provoking panel discussions and speeches with futuristic outlook and inspirational value which were received very well by the 200 delegates amongst the audience. The discussions were centered around the theme of ‘Driving growth and delivering safety’. Customers, members of industry associations and media were the key participants at the event. The day unfolded with the welcome speech of Dr. Joerg Strassburger, Managing Director and Country Representative, LANXESS India, which then led to a very optimistic and forward looking speech by Dr. Axel C. Heitmann, Chairman, Board of Management, LANXESS AG. He opened the doors to an insightful discussion on the contribution of synthetic rubber to India’s economic progress. In the opening address, he said, “Today we are the world leader in synthetic rubber. This means leading in high-performance rubber, rubber chemicals and technical rubber products that make possible safer, energy-saving green tyres and the countless innovative rubber products that keep the industries of the world moving forward. We continue to develop new applications and markets for this versatile, flexible and innovative material. Our goal is to deliver true value for our customers well into the future. And that future does, indeed, look very bright here in India. For that future is built on the solid foundation of several unstoppable megatrends – including a rapid increase in mobility and ever-rising urbanization. Rubber will play a major role in both of these megatrends. The prospects for the tyre industry in India are truly phenomenal. “ The topics for panel discussion included – ‘Dynamic India: Thoughts on strengthening infrastructure’, ‘Synthetic rubber as an enabler for safety, performance and efficiency, ‘The role of synthetic rubber in automotive innovation’ and ‘Innovative industry solutions for a sustainable future’. Some of the eminent panelists were – Jasbir Singh, Industrial Advisor at Ministry of Chemicals and fertilizers, Rajiv Budharaja, Director General of Automotive Tyre Manufacturers’ Association, Prof. Dinesh Mohan, Chair for Biomechanics and Transportation Safety at Transportation Research and Injury Prevention Programme, Indian Institute of Technology, New Delhi and Dr. R. Mukhopadhyay, Director, R&D of JK Tyre Industries and Director and Chief Executive of Hari Shankar Singhania Elastomer and Tyre Research

Institute (HASETRI). The most significant area of discussion was the impact of high-performance tyres on road safety and environmental protection. Everyone unanimously concluded on the fact that in view of increased urbanization, expanding infrastructure and automotive consumption, tyres will play an important role in the Indian automotive market. Innovation is key to the manufacturing of a complex material like tyres, the performance of which can greatly affect factors like fuel efficiency, carbon dioxide emissions and last but not the least, road safety. In this context, radialization of tyres, a notable trend in India is worth attention. Radial tyres offer significantly higher mileage and lower rolling resistance as compared to bias tyres. This in turn lowers the fuel consumption to a large extent and hence offers greater return on investment for the transporters in the long run. Most tyre companies in India are in consideration of or, are in an advanced stage of setting up greenfield projects for manufacturing radial tyres for trucks and buses and companies already having production facilities for truck and bus radial tyres are also undergoing capacity expansion. With an increased investment in roads and highways in the coming years and the focus on fuel efficiency, radial tyres will be the need of the hour. Therein lies the opportunity for LANXESS Halogenated Butyl rubber. LANXESS is a leading manufacturer of Regular Butyl rubber along with Halogenated Butyl rubber, namely Chlorobutyl rubber and Bromobutyl rubber. LANXESS has mastered the technology know-how for producing excellent quality Halobutyl rubber, a capability that has limited manufacturers worldwide. LANXESS Butyl rubber is particularly suited for a variety of applications such as inner tubes, inner lines (for tyre) curing bladders and protective clothing (non-tyre). A large part of the production of the Butyl Rubber business unit of LANXESS constitutes of

Halobutyl rubber. The Butyl Rubber business unit is part of the Performance Polymers segment of LANXESS, which achieved total sales of EUR 2,388 million in 2009. LANXESS is setting up a state-of-the-art Butyl rubber plant in Jurong Island, Singapore, which is scheduled to start production in Q1 2013. This plant will be a key supplier of both Butyl and Halobutyl rubber to the world tyre market, with focus on Asia Pacific countries, including India. Backed by innovation-driven technology, commitment to quality and the right infrastructure to meet the present market needs, LANXESS is all set to enhance its contribution to the tyre market in India.

Auto Monitor

16 - 31 December 2010

ANALYSIS

Premium motorcycle sales increase 52 percent in November Shambhavi Anand New Delhi

otorcycles in 125 cc and above segment clocked 52.18 percent growth in the domestic sales in November this fi scal as compared to the same month in last fiscal. According to the data made available by the Society of Indian Automobile Ma nufacturers (SIAM), motorcycles sales in the month of November for the current fiscal saw a growth of 52.18 percent in the domestic market and 36.94 percent increase in exports as compared to the corresponding period in the last fiscal. The total number of motorcycles sold in 125 cc and above capacity in the domestic market in November FY11 stood at 210,206 as against 138,129 in November FY10. A total of 48,967 bikes in this segment were exported as compared to the 35,758 of the corresponding period in the

Motorcycles (April-November FY11)

125 cc and above

Domestic Sales - November

Domestic Sales - April-November

Exports - November

Exports - April-November

OEMs

FY10

FY11

Change

FY10

FY11

Change

OEMs

FY10

FY11

Change

FY10

FY11

Change

BAL

58,934

109,141

85.19%

566,255

835,961

47.63%

BAL

14,320

26,232

83.18%

127,002

240,270

89.19%

HHML

16,482

25,818

56.64%

152,283

199,386

30.93%

HHML

696

1,342

92.82%

5,735

8,521

48.58%

HMSI

36,536

38,693

5.90%

267,089

326,925

22.40%

HMSI

7,521

5,921

-21.27%

40,522

36,844

-9.08%

IYM

12,008

18,544

54.43%

112,829

129,858

15.09%

IYM

6,123

7,028

14.78%

31,886

53,366

67.36%

SMIL

3,280

4,852

47.93%

31,942

29,011

-9.18%

SMIL

352

-100.00%

1,047

449

-57.12%

TVS

10,889

13,158

20.84%

89,734

95,085

5.96%

TVS

6,746

8,444

25.17%

30,330

64,611

113.03%

Total

138,129

210,206

52.18%

1,220,132

1,616,226

32.46%

Total

35,758

48,967

36.94%

236,522

404,061

70.83%

same period of the last fi scal. The segment has continued to grow throughout this fi scal on a month-on-month basis, except November showing slight dip in the domestic sales as compared to October, which can be attributed to the bullish festive demand in October. A The cumulative sales in the 125 cc and above segment stood at 1,616,226 units as compared to 1,220,132 in the same period in

Motorcycles (month-on-month FY11) 125 cc and above OEMs

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Total

Marketshare

BAL

79,728

89,844

85,395

94,261

112,874

138,455

126,263

109,141

835,961

51.72%

HHML

23,562

22,825

24,255

22,881

26,721

26,141

27,183

25,818

199,386

12.34%

HMSI

37,109

39,432

44,181

42,063

38,508

41,027

45,912

38,693

326,925

20.23%

IYM

10,410

12,581

14,136

15,289

15,757

18,653

24,488

18,544

129,858

8.03%

SMIL

1,834

3,360

2,837

1,583

4,181

4,672

5,692

4,852

29,011

1.79%

TVS

8,497

10,828

12,064

10,834

12,044

12,919

14,741

13,158

95,085

5.88%

Total

161,140

178,870

182,868

186,911

210,085

241,867

244,279

210,206

1,616,226

100.00%

FY10, a growth of 32.46 percent. The motorcycle exports grew by 70.83 percent in the period of April to November FY11 as compared to the same period in FY10. The exports in the segment touched 404,061 units in this fi scal as compared to 236,522 units in the last fi scal,. According to Auto Analyst, Religare Capital Markets, Kaushal Maroo, growth drivers for the industry are a good monsoon, better implementation of NREGS, finance availabilit y and unmet demand (due to production constraints) supporting volumes. Baja Auto sold the largest number of motorcycles in 125 cc and above segment, in domestic market as well as international markets. It sold 109,141 units in the domestic market in November FY 11 as against 58,934 units in FY 10, an increase of 85.19 percent. The company’s export also grew from 14,320 units in November FY 10 to 26,232 units in November FY 11, a growth of 83.1 percent. The company’s sales in the segment showed consistent growth throughout this fi scal though it showed a slight dip in its sales during October FY 11 despite the high festive demand. Hero Honda sold 25,818 units in the domestic market in November FY 11 as compared to 16,482 units in the same month in the last fiscal registering a growth of 56.64 percent. It exported 1,342 units in November this year as compared to 696 units in the previous fi scal, a growth of 92.82 percent. The sales of HHML in the period from April-November FY 11 saw slight dips in the months of May, July, September and November. The domestic sales for the period of April-November FY 11 for HHML rose to 199,386 units from the previous year’s 152,283 units, which is a growth of 30.93 percent. The export also rose from 5,735 to 8521 in the period of April to November, an increase of 48.59 percent. Honda Motorc ycles & Scooters saw a 21.27 percent dip in the export in November

Suzuki Motors sold 29,011 units in the domestic market in the 125 cc and above segment in April-November FY11 as against 31,924 units in the corresponding period last fi scal thereby registering a 9.18 percent decline. The sales in the month of November this year rose to touch 4,852 units, a growth of 47.93 percent. SMIL saw Growth drivers forthe significant dip in the industry include good domestic sales in month monsoon, better implementaof June and July selling 2,837 units and 1,583 tion of NREGS, finance units in these months availability and unmet respectively. SMIL sold demand supporting volumes 5,692 units in October this year. TVS Motors’ exports rose from 30,330 in the period of previous fi scal. The company April-November FY10 to 64,611 in sold 38,693 units in November FY11, a growth of 113.03 percent. FY11 as compared to the last The company exported 8,444 years 36,536 units, a growth of 5.9 units in November as compared percent. It sold a total of 326,925 to 6,746 units in same month in units in the domestic market in FY 10, a growth of 25.17 percent. April-November FY11. FY11 as compared to November FY10. It exported 5,921 units in November FY11 as against 7,521 in November FY 10. The cumulative exports also saw a 9.08 percent dip for the period AprilNovember FY 11 as compared to the corresponding period in the

India Yamaha Motors sold 18,544 units in November FY 11, a 54.43 percent increase, as compared to 12,008 units in the same month last fiscal. The company saw a consistent rise in the domestic sales throughout the fiscal on a month-on-month basis. The cumulative sales for the period of April-November FY11 rose to 129,858, which is a growth of 15.09 percent. The company’s exports grew by 14.78 percent to touch 7,028 units as against 6,123 units exported in the month of November last year.

The domestic sales of TVS in the month of November FY11 stood at 13,158 units as against 10,889 units of FY10, an increase of 20.84 percent. TVS sold 95,085 units in the period of April-November FY11 in the domestic market. A look at the market share of the major OEMs in the 125cc and above segment in the period of April-November FY11 based on the month-on-month sales in the domestic market suggests that Bajaj Auto led the pack with 52 percent share followed by 20 percent for HMSI.

Auto Monitor

CORPORATE

16 - 31 December 2010

Brakewel Automotive Components looking at evolving into braking systems supplier Nabeel A Khan New Delhi

ra kewel Automot ive Components, the Noidabased manufacturer of friction materials, is planning to increase its capacity for clutch facings and diversify into manufacturing and supplying disk pads. The company has acquired 8,000 square yards of land in Noida with an investment of `5 crore and will start construction at the location around March, 2011. The company has chalked out plans of investing around `20 crore towards expansions. ‘We are putting up a bigger plant in Greater Noida compared to our existing facility

and the new facility should be operational by 2012. As the new plant starts functioning, we hope to increase our sales fourfold to around `80 crore,’ said Managing Director, Brakewel Automotive Components, P Sharan Arora. The company currently holds around 50 percent marketshare for clutch facing in passenger vehicles segment with Maruti Suzuki India (MSIL) as a key OEM customer. It is a Tier-II supplier to Ceekay Daikin and Clutch Auto. Arora is aspiring to evolve as a braking systems supplier to OEMs and is looking for a technical collaborator for brake lining and related products. ‘Though some of the OEMs have recorded

P Sharan Arora, MD, Brakewel Automotive Components

a fall in sales in November, many customers are increasing capacity,’ Arora said. ‘Except for the Tata Nano, which has registered much lower production than anticipated, most other models are expected to meet expectations,’ he added. The company is aiming to scale up its revenue to around `80 crore from around `20 crore over the next two years. ‘Infrastructure development holds the key to continued growth of the automotive industry. In China, the growth in automotive sector has been possible because of good infrastructure. The improving infrastructure in India promises a bright future,’ he said. The company, which has a technical collaboration with ASK Technica, Japan, derives around 15-20 percent of its revenues from the aftermarket segment, with the remaining coming from the OEM segment. ‘We face competition due to huge imports from China in the aftermarket segment as the production cost in China is equal to the cost of raw material here. We can do well in this segment only if the Indian Government puts more stringent import barrier or restrictions for Chinese imports,’ he elaborated. One of the areas of major concern is quality manpower and the company is engaged in revamping the policies to stem the rate of attrition. ‘It has been a challenge to employ good manpower and to retain them. We have around 25 percent attrition rate, but we are working on reducing this,’ Arora said.

Neolite ZKW’s new plant to go on stream this month Shambhavi Anand New Delhi

eolite ZKW, a joint venture between Neolite Industries and ZIZALA Lichtsysteme GmbH (ZKW), is set to begin the fi rst phase of production from its new plant in Bahadurgarh, Haryana, on 16 December, 2010. Neolite Industries had signed the JV with ZKW on 19 December, 2007. The new plant, built over a period of over 18 months, will produce a range of products, including head and tail lamps, and LED lamps for Tata Motors, Force Motors, Mahindra & Ma h i nd ra, Hi ndusta n Motors, Eicher, and Piaggio, among others. The company, which is currently a significant player in the commercial vehicle segment, is eyeing business with global OEMs, especially in the passenger car segment through this JV. It is also hopeful of acquiring more customers in the passenger vehicles segment. Neolite Industries, which recently added General Motors and SkodaAuto to the list of its OEM customers, exports its products to 80 countries.

16 - 31 December 2010

Auto Monitor

CORPORATE

Growing SUV segment catches OEM fancy Nabeel A Khan New Delhi

ven as the Western markets tilt towards compact cars, manufacturers in India seem to be renewing their focus on Sports Utility Vehicles (SUV). If the number of new launches in the past couple of months, and the ones readying launches, are anything to go by, the SUV market in India seems to be riding a huge popularity wave among consumers. Skoda Auto launched Yeti, Audi introduced new versions of the Q5 and Q7 SUVs, Hyundai Motor India (HMIL) brought in the much-anticipated Santa Fe, and Mercedes Benz India (MBIL) launched the M-Class Grand – the Grand Sports and Grand Executive SUVs in the past few months. Intensifying the competition in this segment, Volvo India too launched its globallyacclaimed compact SUV, Volvo XC60, in the Indian market in November to give tough fight to riva ls like BMW.

Indian utillity vehicle major, Mahindra & Mahindra (M&M) too is planning to re-launch the Thar, and planning to bring more vehicles at the lower-end of the SUV segment. Industry experts are predicting that rosy days will continue in this segment, backed by a number of positive developments, including the growing income among the Indian middle-class. One of the prime reasons for the realisation of great expectations is that despite the recent spurt in new launches, the SUV segment in India is still small in size in comparison to small cars and sedans. ‘The strong demand in the market for the SUVs is evident from the waiting periods for the Toyota Fortuner. The still untapped potential in the segment and lack of superior product from the incumbent players have made many new players eye the growing pie of the Indian SUV segment,’ said AVP – Institutional Research, Religare Capital Markets, Kaushal Maroo. He added that large part of the demand in the Western market comes from the

replacement segment given n that they are by-and-large saturated, urated, whereas for emerging markets arkets like India demand comess from replacement as also from m fi rst time buyers – given low penetranetration levels of cars in the country. untry. The increasing discreiscretionary spending from upper a nd upper-m idd le-cla cla s s, decreasing age profi le of the buyers who look for superior or and premium products, easier availability of vehicle fi nance have ave got the demand of SUVs to go up, Maroo maintained. According Keyur Vora, a, an industry expert, competitive etitive pressures in passenger car segment and rural prosperity, where size of the family mandates vehicle choices, is propelling companies to look beyond traditional segments and increases the demand of SUVs in India. Partner, Automotive Practice, Ernst and Young, Kapil Arora agreed. ‘Indian vehicle buyers have growing aspirations and there are two reasons behind this – fi rst, the deeply penetrated market, which gives enough potential for SUVs, and second, the growing income of the middle-class in India.’ Automotive Practice Leader, PricewaterhouseCoopers India, Abdul Majeed observed, ‘The growth is primarily due to growing demand for automobiles and increasing disposable income in the hands of the Indian consumers. The middle-class segment continues to grow with the burgeoning economy. They (middle-class) are keen to position

themselves ahead in the status ladder by buying an SUV/ luxury car, which is perceived as a status image.’

Seizing Opportunities Industry sources also point out that companies constantly have to look out for pockets of growth as also geographical diversification, they can’t or rather don’t want to ignore opportunities that India offer. More importantly, they would want to be the fi rst to strike the right chord with a very discerning Indian consumer before the market turns fiercely competitive, rendering their growth less profitable. ‘Big cars were a rage in the West, when oil prices ruled at levels, which were at a fraction to those prevailing today. For majority of Indian consumers for whom cost of ownership is important, small, fuel-efficient cars is the need. Space constraints in metros and ease of manoeuvrability are an added attraction of smaller cars,’ Maroo added. However, going by India’s per capita level of income, vis-à-vis

levels prevailing in the developed world, it makes sense to tap the small car segment, where the volumes really are. The sedan segment nevertheless does hold potential for companies wanting to confi ne its focus to that segment of the market. German Luxury car manufacturer, Audi, reported a 208 percent growth with sales of 357 units in October this year against 116 units in the same month in 2009. Tata Motors is reportedly looking at doubling its annual SUV sales to around 70,000 units over the next one year. Volvo’s latest compact SUV, XC60, is priced at `41.41 lakh (ex-showroom, Mumbai) and at `39.50 lakh (ex-showroom Delhi). A naylysts Auto Monitor spoke to unanimously remained optimistic about the rise in automobile sales on the whole, with under-penetration of vehicles, favourable demographics, higher incomes, increasing penetration of fi nancing companies, aggressive brand launches straddling multiple price points, and sub-optimal public transport system.

Auto Monitor

16 - 31 December 2010

CORPORATE

Credit, self purchase to remain predominant: CVO report Our Bureau Mumbai

ercentage of corporate fleet procured using credit has grown from around 24 percent in 2008 to around 32 percent in 2010 and may continue to be a predominant mode of acquiring corporate fleet, according to a study jointly conducted by TNS Sofres and Arval. Corporate Vehicle Observatory (CVO) is the independent and international expert platform for the corporate fleet industry backed by Arval – BNP Paribas. Cars bought on operating lease basis would grow by more than three times over the next

three to four years as operating lease concept gains better understanding and comfort among corporate buyers, according to Managing Director, Arval India, Liam Donnelly. The share of operating lease among corporate fleet owners has grown from less than three percent in 2008 to around eight percent in 2010, even as the share of fi nancial leasing and self-purchased vehicles has reduced from 14 to 10 percent and 59 to 50 percent respectively in the period under review. The study was conducted among companies with less than 10 employees (99 companies), 10 to 99 employees (66 companies), 100 to 499

Major differences between corporate fleet purchase decisions between companies in Europe and India is that companies here tend to restrict the selection of vehicles based on the capital cost of vehicle employees (91 companies) and more than 500 employees (59

Liam Donnelly, Managing Director, Arval India

companies) across sectors and geographies in India. This year the study focusing on professional mobility compared the vehicle ownership and buying trend among corporates in 14 countries with Turkey and Brazil added to the list for the first time.

Accounting Standards The new proposals under IFRS, if adopted, would treat all lease as fi nancial lease as opposed to differentiating a lease as fi nancial lease and operating lease. Currently under US GAAP, any vehicle bought under a leasing agreement qualifies as a fi nancial lease when agreement allows ownership of the asset to be transferred to lessee at the end of the lease period, contains bargain purchase option, lease term is equal to 75 percent or more of the economic life of the asset and the present value of the lease term equals or exceed 90 percent of the excess of fair value of the leased property. The lease would be classified as operating lease if it does not include any of the condition mentioned under fi nancial lease agreement. ‘One of the major differences between corporate fleet purchase decisions between companies in Europe and India is that companies here tend to restrict the selection of vehicles based on the capital cost of vehicles as opposed to total cost of ownership, a predominant criteria in Europe. This may not always be cost efficient and may not lead to employee motivation,’ argued Donnelly.

Green Vehicles In India, allowing freedom in terms of choosing vehicle in the corporate fleet bought through any fi nancing mode continues to be a critical tool for motivation at the middle and senior management level. Car sharing, where employees share journeys with colleagues at workplace on mutually convenient basis is more popular compared to car pooling, where cars are available to employees on booking from corporate fleet. Green vehicles, including electric and hybrid vehicles, may take much longer for adoption in sizeable numbers in any corporate fleet due to lack of refi lling infrastructure in the country. Doubts on safety and associated technical uncertainties, in addition to high cost in case of hybrid cars available today, are the main issues considered before buying a ‘green’ car.

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M&M FES working on complimentary product strategy for Mahindra, Swaraj Our Bureau Mumbai

ahindra & Mahindra’s Farm Equipment Sector (FES) is implementing brownfield and greenfield expansion plans to take its overall capacity to more than 300,000 tractors per annum. The capacity would be spread across the country and help Mahindra and Swaraj brands to gain marketshare. The company expects the tractor market to grow by around 15 to 18 percent over the next couple of years and is looking to have manufacturing presence in all major tractor markets in the country. ‘Even though India is the larg-

Avinash Patankar, Sr VP, Sales Channel Development, FES, M&M, Bishwambhar Mishra, Managing Director, Swaraj Division, M&M, Dr Pawan Goenka, President, AFES, M&M, Sanjeev Goyle, Sr VP, Marketing & AppliTrac, FES, M&M

and Farm Equipment Sector, M&M, Pawan Goenka. He added that M&M is looking to expand dealership and services network for Mahindra and Swaraj branded tractors.

est tractor market in the world, it is the most underdeveloped market for tractors as well and we are looking at higher level of mechanisation and upgradation,’ said President, Automotive

n di

‘Both brands – Mahindra and Swaraj – are gaining marketshare and will benefit from their respective position in the tractor segment. We are looking to fi ll gaps in the product portfolio

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and have a complimentary set of products across price range for both brands,’ said Managing Director, Swaraj, B Mishra. M&M is also evaluating the possibility of contract manufacturing its 15 hp ‘Yuvraj’ tractor in order to ramp up production and make it more widely available across the country. Currently, the tractor is sold in select states in Western region due to capacity constraints, but the situation is likely to ease in the coming weeks. The company recent ly announced Mahindra Samriddhi India Agri Awards 2011 to recognise contributions by individuals and organisations towards the development of Indian agriculture. Mahindra’s FES will reach out to prospective applicants through its wide network of dealerships across the country. Revenues for the Farm Equipment Sector stood at `7,935.14 crore for the year ended March 2010. In Q2FY11, revenues for the FES stood at `2,084.99 crore.

Maschio-Gaspardo Tie-up M&M, meanwhile, signed an agreement with Italy’s Maschio-Gaspardo, a leading manufacturer of rotary tillage equipments, for cooperation and exclusive supply of complete range of rotary tillage equipment to Mahindra AppliTrac business. The cooperation would be initiated by launching rotavators manufactured by Maschio exclusively under the Mahindra brand name. The rotavators will be made available through Mahindra and Swaraj dealerships. Under the agreement, other rotary tillage equipments for planting, seeding, crop care and crop residue management would also be supplied to Mahindra AppliTrac business by Maschio. The equipments would be sold under the Mahindra brand name in the market. Mahindra being the largest tractor manufacturer & Maschio being a leading international rotary tillage manufacturer, this cooperation will be mutually beneficial, a statement stated. The Mahindra AppliTrac is a part of M&M’s Farm Equipment Sector business and focuses on the complete value chain of farm mechanisation solutions starting with land preparation to post harvest solutions at affordable price to Indian Farmers. The focus of AppliTrac business is to create solutions in various focus segments including crop specific solution, rotary tillage equipment, trans-planter and seeders, harvester business and material handling equipment. Maschio-Gaspardo is a leading manufacturer of rotary tillage equipments in Europe. The group commenced operations in 1964 and is currently operating in Italy, France, Germany, East Europe, North America, China, Korea, and other countries across the world. MaschioGaspardo manufactures a wide range of land preparation, seeding, post harvesting equipments like rotary tillers, power harrows, seed drills, fertilizer spreaders, shredders & mulchers and shrub master.

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Messung Systems pinning hope on growing automation in automotive sector Abhishek Parekh Pune

ith most OEMs having drawn up plans for capacity expansion, Messung Systems is hoping to gain larger share of automation drive taking hold in the automobile and auto component sectors. The company is targeting double digit growth over the next couple of years and planning to increase its products and service offerings mainly for the diverse and sophisticated needs of the automotive sector. ‘Automotive sector is top customer segment and is the most dynamic in terms of demand for sophisticated and reliable equipments. The demand from the segment will grow as most OEMs and even component makers are turning to automation for consistency and higher productivity,’ said Managing Director, Messung Systems, Farook Merchant.

Farook Merchant, Managing Director, Messung Systems

He said that most manufacturers are looking for a reliable solution, which is flexible in different scenarios and can be handled with ease. Moreover, with automotive exports picking up pace has meant higher demand for consistency and reliability in quality for the European a nd ot her neig hbour ing Asian markets. Messung Systems provides a suite of products and solutions to achieve quality improvement and operational standards including PokaYoke and KANBAN, which are widely deployed in most European and Japanese facilities in India. ‘One of the major issues that need to be addressed by OEMs across the manufacturing sector is major knowledge gap that exists in implementing Manufacturing Execution System (MES). Either the software service providers would have to scale down or equipment providers, like us, would have to scale up to fulfi l the gap,’ said Merchant. The Messung Group provides a combination of factory automation products including Programmable Logic Controller (PLCs), Variable Frequency Drive ( VFDs), Human Machine Interface (HMIs), servos and motion control products from Mitsubishi Electric. The company has also indigenously developed PLCs to suit variety of demanding requirements in India.

The company provides automation solutions in verticals including automotive, pharmaceuticals, textiles, printing and packaging. Messung Systems has leveraged Mitsubishi Electric’s factory automation products to become the preferred automation solution provider to leading manufacturers in these verticals. Automation products undergo evaluation by a range of users – from design to manufacture to production – to match pre-determined standards of product features and performance consistency. The business development group operates through 12 offices and service centres and 60 system houses and integrators.

Programmable Logic Controller at Messung’s Pune facility

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Tata Motors launches BS-IV compliant Winger Platinum Our Bureau Mumbai

ata Motors (TML) recently launched the BS-IV compliant Winger Platinum at `7.4 lakh (ex-showroom, Mumbai) primarily targeting the growing needs in the taxi and hospitality segments. The company is evaluating some of the key and strategically located Tata Motors passenger car dealerships in major cities, where the Winger Platinum would be available for sale, in addition to all its commercial vehicle dealerships. ‘Our survey indicates that there may be good demand for such vans for family transporta-

tion in cities and we would ensure that this demand is met by us. We are targeting all potential buyers of small buses, utility vehicles and even SUVs, who demand comfortable and reliable transportation,’ said Head, Commercial Vehicle Business Unit, Tata Motors, Ravi Pisharody. The BS-III compliant Winger Platinum would be available at a starting price of around `7.05 lakh. He added that the van, as a mode of transportation, is likely to gain increasing popularity due to the versatility and comfort it offers. The company is targeting around 20-25 percent marketshare in the UV and Van segment, with wider availability of Winger

across the country. The Winger Platinum is available in pearl white and cycus grey and the company is backed with a 1.5 lakh km or 18-month warranty, whichever is lesser. The seven-seater Winger is designed for multiple applications as a people mover and is likely to fi nd widespread usage in airport transit, hospitality, and business process outsourcing, among other applications. The vehicle also comprises engine sub-frame, anti-roll bars at front and rear, retractable seat belts and child safety lock. The three-way adjustable driver’s seat with power steering and a

turning radius of 5.65 metres helps reduce driver fatigue. Motorised headlamps, fog lamps

and a demisting unit aid visibility while driving. The aptly designed suspension ensures ride comfort, while the monocoque design minimises NVH, claimed a company statement. Company officials also said that there is unlikely to be any price revision this calendar year, though it continues to monitor the market scenario. The CV demand is growing on the back of growing demand for goods transportation as well as passenger transportation across the country. The company is evaluating new variants in various tonnage categories. The company is also working out newer set of applications in the 16-25 tonnage segment, as the segment continues to show lacklustre performance. Pisharody said that dealership network and service capability for commercial vehicles is in the process of being significantly enhanced. With proportion of fully built vehicles increasing in the sales mix of the company, it is hoping to enhance showroom space to accommodate the full range of commercial vehicles for better visibility with customers.

Nissan debuts Micra Diesel at `5.58 lakh Our Bureau New Delhi

issan Motor India (NMIPL) has launched the diesel variant of its fi rst ‘made in India’ compact hatchback car, Micra, priced between `558,500 for XV and `604,500 for XV Premium (ex-showroom, Delhi). The car is powered by a 1.5-litre Common Rail Direct Injection K9K diesel engine, mounted on Nissan’s V platform. The Chennai-based manufacturer claims a best-in-class fuel economy of 23.08 kmpl (as approved by ARAI). The Micra’s eight-valves, fourcylinder diesel-powered engine generates peak power of 64 ps at 4000 rpm, while torque output is 160 Nm @ 2000 rpm. The Micra Diesel comes with a five-speed manual gearbox, and is available in six colours. The Japanese carmaker had launched the Micra hatchback in its petrol avatar in July this year. Since sales began on 15 July, 2010, the company has sold over 6,000 units of Micra.

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Volvo buys out Azad Group’s stake in bus body joint venture Our Bureau New Delhi

olvo Buses India recently announced buying out 100 percent share in its JV partner Azad Group. Earlier, Volvo Buses was holding 70 percent stake in Azad Group. The bus maker said in a media release it was witnessing increased demand from both private and institutional customers and this strategic move will provide them greater flexibility to expand and put in place ambitious growth plans in the coming years. ‘The future includes an increase in production by close to 100 percent by 2012, catering

Daimler extends shift on growing demand Our Bureau Mumbai

ercedes-Benz India (MBIL) recently kicked-off the second shift at its Chakan facility, near Pune, on a permanent basis to potentially double the existing output to meet growing demand. The company has also set up a new paint shop for up to 40,000 unit capacity, taking the total investment in the facility to `600 crore. ‘As we have already exceeded fi rst shift capacity, we are now moving into permanent two-shift operation to meet the growing demand,’ said Managing Director & Chief Executive Officer, Mercedes-Benz India, Dr Wilfried Aulbur. He added that the company has set up its own paint shop for water based painting. The paint shop will be operational by the second half of 2012 with an annual capacity of 20,000 units with flexibility of being raised to 40,000 units per annum. The company assembles S class, C class and E class at the Chakan facility through CKD imports. The company is evaluating possibilities of manufacturing additional models, the company officials pointed out. The company recently rolled out its 30,000th unit from the Chakan facility. MBIL recorded year-onyear growth of 86 percent in the Jan-Nov 2010 period. ‘We plan to increase local sourcing. Towards this, we have decided to increase the portfolio of locally produced cars beyond the S, E and C Class range starting 2013,’ said Director Corporate Affairs and Human Resources, Mercedes Benz India, Suhas Kadlaskar. The company sold 518 units in November – a growth of 89 percent as compared to Nov 2009, when the company had sold 275 units. The key growth driver has been sales of the E Class notching up sales of 251 units in November 2010, followed by the C Class, which sold 156 units. The S Class sold 39 units last month.

to more export markets and to bring in products for new segments,’ the company said. The company claimed to have received a bulk order of 100 Volvo 9400 multi-axle buses from Vijayanand Road Lines (VRL) Logistics. To cater to the growing future demand and plans, Volvo Buses is said to be augmenting its factory and establishment with new facilities for refurbishment operations and will also increase in manpower by 30 percent in the coming two years. Elaborating on the company’s expansion plans, Managing Director, Volvo Buses India, Akash Passey said ‘We have seen robust growth in 2010 in terms

of order wins and production and we see future progress as long-haul luxury travel is getting segmented with higher demands, the country is clear about its ambition of making public transport a key tool for sustainable cities and we at Volvo have built a strong base via a partnership with almost every key private, public and institutional customer. These new investments are aimed in not only fulfi lling current expectations, but raising expectations and exceeding them in the near future.’ ‘The order of 100 buses by VRL reflects the amount by which their confidence has grown in Volvo, in the Indian passenger

demands,’ the company said. From 2011 onwards, the company said it will increase its exports to 25-30 percent of total India volumes over the next few years from the current five per-

cent. Volvo today has over 75 percent marketshare in the luxury inter-city AC coach segment and over 50 percent marketshare in the AC Diesel Low Floor City buses.

Call For Registration

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SIAT 2011 19-21 January 2011

SIAT EXPO 2011 19-22 January 2011

SIAT 2011

Venue : ARAI Campus

e-SIAT EXPO 2011

Pune, INDIA

22nd Jan.2011 to 22nd Feb.2012

Or ganised by

The Automotive Research Association of India In association with

THE COUNTDOWN BEGINS FOR SIAT 2011... Symposium on International Automotive Technology (SIAT) is a widely covered biennial international event organized by ARAI. SIAT serves as an important forum for sharing ideas and knowledge concerning promising areas of Automotive Engineering and Technology, wherein eminent experts and authors present Keynotes and Technical Papers in multiple sessions. The coming edition of SIAT, i.e. SIAT 2011 – 12th in the series, is being organized by ARAI in association with SAEINDIA, NATRiP and SAE International at its campus in Pune (India) from 19 - 21 January 2011. Theme of SIAT 2011 is “Sustainable Mobility – A Creative Challenge” is in continuation with our previous theme ECO-Mobility, emphasizing need for cleaner, greener and eco-friendly mobility. Keynotes and Technical Papers on various areas such as Alternate Fuels, Alternate Power Plants, Automotive Electronics, Automotive Testing & Evaluation Techniques, CAE, Durability, Emissions, Engines, Harmonization of Standards, Materials, NVH, Safety, Vehicle Dynamics, etc. will be presented during the Symposium. Symposium proceedings covering about 150 Technical Papers including Keynotes will be- published along with a Technical Reference Bulletin containing technical articles, case studies and product information. An exposition, SIAT EXPO 2011, will also be organized concurrently at ARAI from 19-22 January 2011. Where a spectrum of world wide companies will showcase Automotive Products, Equipment, Services and Technology solutions in 160 stalls. SIAT EXPO 2011 will be organizing “Technology Theater” as a special event on 22nd January 2011. This Announcement invites delegate registrations. Timely response will avail early bird incentives.

PROGRAMME SCHEDULE SIAT 2011

SIAT-EXPO 2011

19 Jan. 2011

Wednesday

Inaugural Session & Technical Sessions

Inauguration & Exhibition

20 Jan. 2011

Thursday

Technical Sessions

Exhibition

21 Jan. 2011

Friday

Technical Sessions & Valedictory Session

Exhibition

22 Jan. 2011

Saturday

Technology Theater and Exhibition

DELEGATE FEES Upto 31st December 2010

1st to 19th January 2011

Indian First Author

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Indian Delegate

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` 12,000/-

Indian SAE Member **

` 10,400/-

` 12,000/-

Foreign First Author

US$ 550

US$ 650

Foreign Delegate

US$ 750

US$ 850

Foreign Group Delegates *

US$ 650

US$ 750

Foreign SAE Member **

US$ 600

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FOREIGN DELEGATE (Figures in US$ / Delegate)

Service tax extra as applicable * (Discounted fees per delegate for more than 5 delegates from the same Oraganisation) ** Discounted fees for SAE member holding valid SAE membership at the time of Registration. (Membership details to be provided.) Delegate fee is payable by cash or through Demand Draft in favour of “The Automotive Research Association of India” (ARAI), payable at Pune, India.

Contact : Mr. A. V. Mannikar, : Convenor, SIAT2011 Email: siat2011@araiindia.com

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High-quality tyres could help prevent road accidents to a large extent: Study Our Bureau New Delhi

he number of fatalities in worldwide road traffic crashes is estimated at almost 1.2 million per year, while the number of injured is estimated at 50 million. In India alone, traffic fatalities have been increasing at the rate of 8 percent annually, with no sign of slowing, noted a recent study conducted by Professor Horst Wildemann of the Technical University of Munich, Germany and Bridge to India, a consultancy that specialises in environmental technologies. The study was sponsored by LANXESS, one of the world’s leading manufacturers of specialty chemicals. In his report, Wildemann stated that one of the key solutions to the alarming number of road accidents in India is increased usage of high-quality tyres. Tyre quality impacts road safety, since it determines braking distance and, ultimately, collision speed, Wildemann said. ‘High-quality tyres improve road grip and handling and can reduce braking distance by 50 percent,’ the Professor said.

Preventive Measures India, in fact, holds the dubious distinction of having more fatal traffic accidents than in any other country. Road toll in India has risen consistently since the start of the last decade and now an average of 13 people die in road accidents every hour, the World Health Organisation has noted. In 2008 alone, around 120,000 people were killed on India’s roads. Wildemann’s study states that if preventive measures are not introduced fast, accident numbers will continue to increase in India. The second most populous country in the world, India, is set to overtake China to the top spot in 15 years, if the current growth rate of 1.4 percent is not stemmed. The fact that only about 30 percent of the populace lives in urban areas currently, Wildemann said is indication enough that traffic will intensify and accident rates will increase in the future. Moreover, India’s low vehicle penetration ratio of 15 vehicles per 1,000 people shows it is 40 times lower that Germany’s and 13 times less than Brazil’s fleet of vehicles – another indicator of the likely growth in the near future. ‘With a rapidly growing population, the number of motor vehicles is expected to increase dramatically in future. Consequently, the probability of road accidents will also increase, and it is of paramount importance that India work towards preventing these disasters,’ Wildemann said, while addressing a select group of the Indian media recently. Although the traffic density is much less in India than in Germany, there are more accidents in India. The study also noted that compared to India, the accident rate in Germany is over 30 percent lower. Over the last few years, while

the number of accidents is decreasing in most countries, including Germany, China, and the USA, in India and Russia the number of accidents is increasing. This shows the necessity of actions to decrease accident rates, Wildemann said. By absolute numbers, 2.3 million persons were injured in the USA, followed by Japan with 946,000 and India with 523,000 in the third position. The study stated that India needs to improve its safety policies to be able in order to reduce road accidents, injuries and traffic deaths. Vehicle design, road infrastructure and enforcement need to be enhanced to reduce

fatality and injury rates. ‘The country should orientate itself on developed countries such as Germany concerning the measures to reduce accident rates. Germany can serve as a best practice example as it promotes high quality technology use in vehicles (eg, tyres) and enforces constantly new and useful traffic regulations,’ Wildemann stated.

Possible Solutions The study, which Managing Director, LANXESS India, Joerg Strassburger said is a part of a strategic initiative to create greater awareness of the many important applications of

Contd. on P35

Joerg Strassburger, Managing Director, LANXESS India

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Lubrizol to introduce surface treatment technologies in India Our Bureau Mumbai

pecialty chemical company that produces technologies for the transportation, industrial and consumer markets, Lubrizol, is planning to introduce its surface treatment technologies under its advanced material business in India for automotive and industrial paints. Additionally, it is evaluating on introduction of other high performance material with the aim of doubling the turnover of advanced material business segment in India from around $100 million currently.

‘We are hoping to enhance our presence in the automotive business as Indian market is witnessing a slew of global model launches and exports have picked up steam,’ said President, Lubrizol Advanced Materials, Eric Schnur. He added that Lubrizol already has a major presence in South Korea and has several customers in the automotive sector, who are potential customers in India. The advanced material business comprises performance coatings, engineered polymers and consumer specialities. Performance coatings business enhances performance and surface treatment quality for

automobiles or machines. Lubrizol’s advanced material business has a manufacturing facility in Vadodara, which supplies naturally derived thickeners for application in the personal care market. The business segment focuses on branded speciality polymers and additives for coatings, personal care and speciality plastics.

Indian Joint Venture In India, the company’s largest business segment by revenues is piping systems for fluids and the company has trained more than 12,000 plumbers across the country in products and material technology for piping systems.

Around 72 percent of Lubrizol’s revenues in India come from additives business with additives for engines comprising 49 percent, driveline 23 percent and remaining from other additives related applications. Lubrizol holds a 50 percent stake in Lubrizol India with Indian Oil Corporation. It has a manufacturing and R&D facility near Turbhe in Maharashtra for manufacturing additives for engine and transition lubricants. The company recently consolidated its research and development activities in India at a new centre in Mumbai to support the advanced material business segment. In addition

to catering to the local market, this centre would also cater to the global requirements of Lubrizol and be a part of its global network. Lubrizol India is a part of additive business segment of Lubrizol and develops, manufactures and markets speciality additives, fuels and lubricants for transportation and industrial markets. Lubrizol products include lubricant additives for engine oils, transportation fluids and other industrial grade oils. Lubrizol India manufactures engine additives, fuel additives, driveline additives and industrial additives. Lubrizol is headquartered in Wickliffe, Ohio, the USA and operates manufacturing facilities in 17 countries with 6,800 employees worldwide and revenues in excess of $4.6 billion.

Gestamp to sell stake in Automotive Stampings Our Bureau Mumbai

ata Group promoted, one of India’s largest automotive component suppliers, Tata AutoComp Systems recently acquired 37.5 percent stake in Automotive Stampings and Assemblies (ASAL) from Spain’s Gestamp Servicios for `89.50 per share. Upon completion, Tata AutoComp will own 75 percent stake in ASAL and the balance will be held by public. Tata AutoComp has been rationalising its portfolio and has divested its stake in seven of its business units. This acquisition is a part of its consolidation strategy whereby Tata AutoComp will focus on select product lines. With this acquisition, Tata AutoComp will have five subsidiaries and six joint ventures with leading auto-component majors.

Growing Demand Tata AutoComp Systems provides products and services to the Indian and global automotive OEM’s as well as Tier-I suppliers. Its clients include Ashok Leyland, BMW, Fiat, Force Motors, Ford Motors India, GM India, Honda, John Deere, M & M, Mahindra-Navistar, Man, Mercedes-Benz, Nissan, Piaggio, Renault, Tata Motors, Toyota Kirloskar Motors, Volkswagen and Volvo-Eicher. Tata AutoComp has capabilities in automotive interior and exterior plastics, composites and engineering. ASAL, on the other hand, manufactures and markets automotive components and aggregates made from sheet metal. Some of its customers include GM, John Deere, Piaggio, M&M, Tata Motors and Volvo. ASAL has manufacturing facilities located in Pune in Maharashtra, Halol in Gujarat and Pantanagar in Uttarakhand.

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Toyota looking at BRIC countries... Contd. from P1 Hiroshi Nakagawa, however, said when the new plant of Toyota Kirloskar Auto Parts (TKAP) in Bidadi, near Bangalore, goes on stream in 2012, production of localised engines and transmissions for the Etios would commence, raising the sedan’s localisation level to 90 percent. TKAP, established as a joint venture between TMC, Toyota Industries and Kirloskar Group in 2002, already produces manual transmissions for Toyota’s internationa l multipurpose vehicle (IMV) platform – a core product in Asia – at its production unit in Bidadi. TKAP produces manual transmissions for the Fortuner SUV, manufactured in India, Thailand and Argentina. It also produces axles and propeller shafts for the Innova, manufactured in India.

At present, the Etios 1.2 and 1.5 litre petrol engines are being imported from Japan and this would continue till 2012. Around 100,000 engines would be produced per annum at TKAPs Bidadi plant starting the third quarter of 2012 and approximately 240,000 transmissions annually will be manufactured starting early-2013. Yoshinori Noritake, Chief Engineer, Toyota Motor, Hiroshi Nakagawa, Managing Director, Toyota Kirloskar Motors and Sandeep Singh, Deputy Managing Director, Toyota Kirloskar Motors with the Toyota Etios and Etios Etios Liva hatchback in Bangalore

Future Plans The largest automaker in the world, Toyota, is also contemplating launching the diesel version of the Etios by end-2011, with Nakagawa indicating that steps are currently underway in this direction by the manufacturer. On the next model to follow on the Etios platform, Chief Engineer, TMC, Yoshinori Noritake who designed the Etios said, ‘The Etios platform has potential for developing many more cars besides the Etios sedan and the hatchback, Etios Liva. But we have not yet decided the next model for the Indian market. It could be a multipurpose vehicle, an SUV or a completely new vehicle.’ The Etios Liva hatchback – showcased at the launch of the Etios – would be launched in India during April 2011. Deputy Managing Director – Marketing, TKM, Sandeep Singh pointed out that TKM was targeting sales of 70,000 units of both the Etios and Etios Liva next year. Both would be produced at the second plant of TKM in Bangalore. The fi rst plant of TKM produces the Fortuner, Innova and Corolla and has already been expanded to produce 80,000 vehicles. In total, 150,000 vehicles would roll out from both the plants next year with the number expected to climb still higher. At present, the Fortuner is assembled as a CKD model and holds about 60 percent marketshare in the SUV segment.

Design Innovations Significant lightweighting initiatives have been taken on the Etios, Noritake said. ‘Stamping parts, interiors, engine and transmission parts have been cut to reduce the overall vehicle weight,’ he said, adding that compared to its competitor, Maruti Swift Dzire, the Etios will be 100 kg lighter. ‘The hatchback Etios Liva would be similar to competitors but sport a more spacious cabin,’ he said. Another highlight of the Etios is its air conditioning kit that has been designed to consume less energy of 20 to 30 percent. To design the Etios, Noritake paid a visit to many Indian cities and homes in 2006 to understand the customer’s requirements and found that Indian consumers wanted a quality compact car at affordable prices that gave a good mileage and was spacious and stylish. The Etios sedan, priced between `4.96-6.86 lakh, has already received over 8,000 bookings since its launch.

C O R P O R AT E

Envisioning E i The Future Of Manufacturing

SINGLE LARGEST CONVERGENCE E

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O 360

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16 - 31 December 2010

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Clutch Auto to invest `100 crore, to shift base... Contd. from P1 not able to install all the equipment.’ The company’s annual production of clutch disk from the new plant will increase to five million units from 2.5 million units currently, while diaphragm clutches would increase from two million to four million units. Coil type clutches will touch 2.5 million units in the Bhiwadi plant, up from the one million units currently produced at the Faridabad plant. The company is planning to shutdown the Faridabad facility when the new facility becomes operational. In terms of revenue, Mehta said the company currently makes products worth `1.25 crore a day from the Faridabad plant and will be touching around `2 crore per day by early next year and will further grow to around `5 crore per day by the time Bhiwadi facil-

ity becomes fully operational. ‘We manufacture for OEMs’ requirement as a Tier-I supplier, and the segment is dominated by six major component manufacturers globally and they have established their presence in the clutch markets through JVs, technical collaboration and subsidiaries. We are the only standalone clutch manufacturer in India with independent designs, IPR portfolio and OEMs customers,’ he said. Clutch Auto is eyeing a turnover of around `270 crore this fiscal and is aiming for revenues of `500 crore by 2012. The company has launched around 78 new products in recent years, which is likely to lead to significant growth in revenues from the aftermarket segment. The company derives around 25 percent of the overall revenues from the aftermarket

High-quality tyres... Contd. from P29 high-performance rubber, also offered possible ways to lower accident rates in the country. In addition to better tyres, creating a greater level of awareness, commitment and informed decision-making – including governments, professional sectors and national agencies – would enable that proven strategies preventing and mitigating road traffic injuries are realised. The Government shou ld ma ke it possible for m i n ist r ies of transport, public health, finance, the judiciary and others concerned to collaborate more strongly. Professor Wildemann also recommends implementing higher industr y standards and regulations to minimise the rate of accidents. ‘India needs to Butyl Rubber take the relevant measures and implement a traffic framework that opposes the trends in the Indian traffic system. India’s decision-makers should focus on actions to prevent and mitigate road traffic injuries and allocate resources accordingly,’ he said. Wildemann advocated adoption of elements from the traffic systems of developed countries like Germany. That, he believes, would help India introduce the necessary measures faster. Germany is a very good example for a country with relatively low accident rates, he said. The traffic system is based on a very solid legal framework and highest industry standards. The study also noted that tyres are a major factor for the braking and grip of a vehicle. Wildemann said, ‘The quality of rubber influences the quality of the tyres and therefore affects the grip of the car. High-quality rubber contributes to the grip as well as the braking of a vehicle and therefore is a milestone when trying to lower accident rates.’ Further, the combination of

poor road surfaces and excessively worn tyres produces a dangerous concoction, he said. ‘If the condition of the tires were to be regulated by quality standards, the overall accident rate would improve by five percent. In this way, as many as 24,000 accidents leading to personal injury could have been prevented in 2008,’ Wildemann said.

segment, 12 percent from exports and remaining from servicing OEM demand.

Product Innovation The company has launched a new premium range of application-based clutches across the country mainly targeting the replacement market. ‘We have designed these clutches according to the application. For example, heavy-duty clutch for trucks that are overloaded by up to 200 percent and different clutch for the trucks which run on highways,’ Mehta said. The new range of clutches includes interchangeable, highway, highway heavy duty, CA City and mining special trucks and tripper clutches. ‘Since the launch of these application based clutches this year, the monthly sales have

Vijay Krishan Mehta, Managing Director, Clutch Auto

increased five times. We are growing our product portfolio to include interchangeable, RDC, highway, highway heavy duty, CA City and Mining special trucks

and tipper clutches,’ Mehta said. The company is working in collaboration with four premium institutes in the country under the CSIR’s NMITLI (New Millennium Indian Technology Initiative) to develop a technology to increase the life of clutches by 100 times. ‘The clutches offered by our competitors do not have durability and reliability as compared to the products sold by them in other developed markets,’ Mehta said. ‘We are focusing on the clutch replacement market for mining operations, which is likely to offer working life of around 15,000 to 20,000 km. Clutches meant for onroad application may offer up to 50,000 km and in some categories up to 100,000 km,’ Mehta claimed. The company has launched around 400 products for off-highway and on-highway application over the last few years.

New Appointments Reji Varghese, President, Delphi India Reji Varghese has replaced B Ramaswamy as the new President and Managing Director, Delphi India. B Ramaswamy moves back to Delphi’s Electronics & Safety division, Kokomo, Indiana, in the United States. Reji will be responsible for leading the Delphi India management team and will also be the Managing Director for Delphi Connection Systems’ India operations. Reji had earlier worked with Delphi from 1996 to 2009 and handled various assignments in the Electrical/ Electronic Architecture division as Director Program Management for two of Delphi’s business units. Prior to this new appointment, Reji was associated with Samcor Glass and Teletube Electronics. Reji holds a Bachelor degree in Electrical/ Electronic Engineering from India.

Axel Grossmann, MD, Mann and Hummel Filter India Axel Grossmann has taken over as the new head of Mann and Hummel Filter in India, a 100 percent subsidiary of the Mann and Hummel Group of Germany. Axel is an experienced veteran, who has led Mann and Hummel ventures in Argentina, Brazil, China and Russia. Grossmann follows HansGeorg Hummel, who laid a strong foundation for the

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Indian subsidiary during the last few years. ‘It is our goal to be the fi rst choice for our Indian customers and top supplier in our segments in Asia. By 2018, we will increase our Asian sales share to 25 percent and India is one of our key Asian markets to reach this goal. So we will further extend our OE and also the aftermarket business in industrial and fi ltration automotives, both in the passenger cars and commercial vehicle segments,’ he said in a statement.

Sameer Malhotra, CEO, Shriram Automall Shriram Automall India, a subsidiary of Shrira m Transport Finance has announced the appoi nt ment of Sameer Malhotra as the new Chief Executive Officer. Prior to this, Malhotra was working with Ritchie Bros, an auctioneer of used and unused industrial equipment, as the Country Manager of the Asia Subcontinent.

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16 - 31 December 2010

STUDY

The New ‘Low Cost’: Boston Consulting Nicolas Kachaner

Zhenya Lindgardt

David Michael

ow-cost offerings are not new, but there is a new wave of low-cost business models. They are taking share from traditional players in many industry sectors and locations. This new wave fi rst appeared in rapidly developing economies (RDEs), where both local and multinational companies have had to design new models to serve a large segment of customers with limited fi nancial means. These new models also have important strategic implications for the developed world. RDE-based market leaders are leveraging their home-market success to pursue global ambitions. And multinationals are disrupting competitors and pioneering new price point and applications in the developed world with low-cost offerings created for RDEs. Although some traditional fi rms are already riding this wave, too many are at risk of missing it.

History and the Golden Rules of Low-Cost In 1436, Johann Gutenberg invented the printing press. Until then, books had been laboriously and exquisitely hand produced by monks. Gutenberg’s invention dramatically reduced production costs, and by 1500, nearly 20 million books had been printed more than had been produced in the whole of human history before Gutenberg’s invention. In 1869, John Sainsbury opened his first self-service supermarket in London. Until then, grocers had competed on the basis of location and sales staff. Sainsbury decided to locate his stores outside city centres and also to let customers help themselves. Some of the money he saved by reducing staff and choosing less expensive locations was returned to customers in lower prices. Success came quickly. Sainsbury’s supermarket was not cheap; it was different. A low-cost approach is more than merely an opportunity for current customers to buy the same goods for less. Most important, it is a truly new value proposition that addresses both existing and new customers and is supported by a novel operating model. Consider this: 55 percent

of the fi rst-time flyers on Ryanair, a low-cost airline, have never before travelled by plane. Almost a century after Sainsbury’s innovation, Theo and Karl Albrecht reimagined the grocery store once more. Supermarkets had become hypermarkets and, with ever-increasing store sizes, real estate and personnel costs had again become significant factors. The Albrecht brothers realised that by focusing on a restricted assortment of (only about 600) products and concentrating on private-label goods, they could deliver the lowest prices plus the convenience of city centre locations. Another incredible success. Offering a limited range of products without compromising on quality is another critical pillar of many low-cost business models. Henry Ford leveraged this principle in 1908, when he introduced the Model T and put America behind the wheel. With the introduction of the moving assembly line in 1913, he traded variety for cost, decreeing that the car could be manufactured in any colour ‘so long as it’s black’. Black, it should be noted, was the fastest-drying paint. In 1948, Dick and Mac McDonald reinvented the restaurant: No more printed menus – only a limited set of choices. No waiters – customers would place orders directly at a counter separating the dining room from the kitchen. No more forks and knives – customers would eat with their hands. Perhaps they would even wipe their table before leaving. What a revolution. There would be no compromise on the quality of the food. Cost savings were achieved by range simplification and, as in a supermarket, by having customers perform part of the work traditionally done by employees.

but it’s unlikely to have a material impact on a company’s global results or long-term leadership. In most sectors, achieving strategically significant revenues in RDEs requires going beyond the top of the pyramid and developing business models and offerings that address the broader market. A low-cost business model is a critical element of any RDE strategy. Nokia offers one of the best examples of such a strategy made real. To win in the developing world, it adapted its business model: it leveraged local R&D centres to create low-cost products with features specifically designed to meet the needs of mainstream customers, and it built a novel system to get those phones to market. Nokia’s approximately 100,000 points of distribution give it four times the reach of its nearest competitor. Nokia’s intimacy with the Indian market – which in the time that Nokia has been there, has grown from next to nothing to the world’s second-largest mobilephone market after China – has fuelled meteoric growth.

These examples illustrate the four golden rules of low-cost business models: o Low-cost is now low margin. It can be highly profitable. Ryanair and McDonald’s for example, are among the most profitable companies in their industries. o Low-cost is not low quality. It is, usually, narrower range. o Low-cost is not cheap imitation. It is true innovation. o Low-cost is not unbranded. It is frequently supported by potent brands. Although not all successful low-cost business models are alike many have characteristics in common and rely on a carefully selected set of radical and mutually supportive choices across all dimensions of the business model (Ref: Exhibit)

✧ Align and optimize the asset base

The New Wave of LowCost Business Models By the beginning of the twenty-fi rst century, most multinationals had realised that to achieve their growth ambitions, they would need to win in the so-called BRIC markets: Brazil, Russia, India, and China. Most companies simply transplanted their traditional developed-world business models to these markets. Serving higher-income customers in the major urban centres, these companies achieved double-digit growth with only a small revenue base. This kind of growth is nice,

How Should Traditional Companies React? Too often, when it comes to low-cost, companies get caught in two traps: a denial trap and an innovation trap. We all know the denial trap. Business leaders underestimate the power of low-cost models to affect their business. They think that low-cost options are not serious rivals. They presume that their customers value their company’s service and brand too much to defect. When they start to see movement toward a low-cost player, they make some minor adjustments or efforts at imitation. When that approach eventually fails, they retreat to the premium segment. This was exactly how traditional pharmaceutical companies reacted to the growth of generic drugs in the mid-1990s. Having considered generics to be negligible, they tried to cover the low-end market with older, off-patent products. Some launched generics divisions but closed them down because volumes were low and margins thin. But now Teva Pharmaceutical

as sales and service – to rapidly develop and launch a portable product. At an initial selling price of $30,000 (the price is now down to $15,000), the product was a success. Sales took off in China. Moreover, GE discovered that this new product opened numerous new applications for ultrasound in the developed world, where its traditional products were either too large or too expensive to be considered. By 2008, revenues from portable ultrasound equipment had grown to nearly $300 million. GE has reaped similar ‘two way’ benefits not only in other health-care lines but also in other businesses such as aircraft engines. Jeff Immelt, GE’s chairman and CEO, refers to this phenomenon as ‘reverse innovation’. Low-cost business model innovators are not all from the developed world. Taiwan’s AsusTeK Computer pioneered the low-cost market for net-books with a profitable Linux-based machine priced only slightly higher than the computers from the non-profit ‘One Laptop per

Low-cost Business Models Are Based on an Integrated Model with Radical choices Value proposition Target segments ✧ Focus on a limited number of Price-sensitive customer segments ✦ Defi ne segment borders clearly ✧ Understane their priorities and business economics

Products or service offering

Revenue model

✧ Design a provocative new offer with strong appeal to the target segments

✧ price for basic core value

✦ Keep it simple, uniform, and focused on basics and on eliminating other attributes

✦ Eliminate frills ✦ Charge for options

✧ Establish high core-service standards to support the value proposition ✧ Brand to establish presence and trust

Low-Cost business model

Value chain

✦ Defi ne core versus noncore activities ✧ Determine what should be inhouse and what out-sources ✧ Rely, wherever possible, on into-date, standardized assets

Organization

Cost model ✧ Achieve low cost along the whole value chin

✧ Design for operational efficiency ✦ Limit overhead

✦ Apply the model from sourcing through distribution

✦ Adopt radical human-resources policies

✧ Design to the cost target consistent with the profitable delivery of the value proposition

✦ Match new employees with the right job profi les ✧ Foster an entrepreneurial visionary culture

Operating model Source: BCG analysis

Today, with $3 billion in revenue from India, Nokia is one of the largest multinationals there. But the game is not over. Nokia faces escalating challenges from nimble local handset manufacturers. Tianyu, for example, has risen to the number three position in the market, employing a business model that focuses on fast innovation cycles and unique features such as ultraviolet lights that detect counterfeit currency. Low-cost is a necessity in emerging markets and often also a source of inspiration in mature markets. In 2002, General Electric was having only limited success selling ultrasound devices priced at $100,000 and higher to sophisticated Chinese hospitals. It was clear that capturing the heart of the market would require a dramatically different business model. GE chose to pursue a value proposition focused on low-cost and portability. It made significant changes to its operating model – in R&D as well

Child’ initiative. The product, the Eee PC, was voted the most desired gift for Christmas 2007 on Amazon.com. India’s Tata Motors saw a huge untapped opportunity in families who needed motorised transportation but could not afford a traditional car. Until Tata introduced the $2,500 Nano in 2009, the only options for these families were three-wheelers. Tata rethought the automotive business model from the ground up in order to design, produce, and deliver a $2,500 car. The company of course eliminated many frills and limited available options, but – more important – it also leveraged on open development model that relied heavily on suppliers. Like GE, Tata sees opportunities to bring this innovation to the developed world. Tata has announced the Nano Europa, which will meet all European regulatory standards and is likely to be on the market by 2012, priced at less than $10,000.

Industries, a leader in generics, is enjoying top-quartile profitability while growing at a rate that is three times that of the pharmaceuticals market overall – and increasingly diversifying into… patent-protected drugs. The innovation trap is familiar too. Development teams typically think that new products should always be better, more sophisticated, and thus, more expensive than the models they replace. When new high-end products are launched, the previous generations are discounted, becoming the midrange and bottom-of-theline products. Meanwhile, smart low-cost players invest in true innovation targeted at the bottom of the pyramid. Leveraging new technologies and frequently new business models, these low-cost players compete and win against yesterday’s technologies. In fact, a leading manufacturer of medical devices, recognising this syndrome, recently decided to

Contd. on P38

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16 - 31 December 2010

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The New ‘Low Cost’... Contd. from P36 refocus some of its R&D activities to renew its low-end range. For those that have avoided the denial and innovation traps and have decided to participate in the low-cost game, there are still hard choices: o Should the low-cost business model be operated within the core business? o Should it share the same brand as the parent? o Should it try to maximise synergies with the parent or favour autonomy? o Should the low-cost business grow organically or by acquisition? There are no one-size-fits-all answers to these questions, but experience suggests some general rules: o Low-cost offerings cannot flourish within a traditional

‘high-cost’ environment. o Brands can stretch only so far. Thus, a secondary brand is often advisable. o The first priority for a low-cost model is that it must win on its own merits. Synergies should be a secondary concern. There are some brilliant organic development successes in low-cost. But, if good options exist, there is no shame in acquiring leading low-cost players in their infancy – and then giving them autonomy. Jetstar Airways, the low-cost airline launched by the Qantas Group in 2004, is a great example of organic development. Jetstar was given a great deal of autonomy. It could buy its own planes, recruit staff under its own contract, and operate under its own brand. Jetstar became profitable in its first year of operation,

and in 2009, Qantas announced that its own solid fi nancial performance was principally due to Jetstar’s strong profitability. Most other traditional airlines that launched low-cost offerings chose to maximise synergies, leading to disappointing results because of the mismatch between their low-cost value proposition and a hybrid operating model that combined some low-cost elements with largely major carrier economics. Essilor International, the world leader in ophthalmic lenses, illustrates the role of acquisitions. The company has made several attempts to counter the increasing share of Asian imports in its core Western markets. Throughout the past decade, Essilor conducted a systematic acquisition programme of lowcost players on all continents. To

date, the company has purchased a leading Korean manufacturer, Indian laboratories, and leading stock houses in countries including Italy, the United Kingdom, and the United States. Given that these companies were quite profitable, Essilor has let them run fairly independently with a focus on top-line success. The company calls this approach ‘organic acquisition.’

A Call for Action Multinational companies cannot avoid having a robust low-cost strategy. Without one, it will be impossible to compete in emerging markets and to prevail over innovative low-cost challengers in developed ones. Low-cost attackers often hit where it hurts, rapidly crippling the economics of more traditional business models.

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So take a moment to dream: get your management team together and imagine your worst nightmare. Then ask yourselves what it would take for your company to be the initiator rather than the victim. This might cannibalise some of your current profit, but, most likely, it will also expand your market scope in a significant way. Are you like the monks of the fi fteenth century, trying to illuminate manuscripts faster and better, or are you envisioning and creating the new printing press that will vault you to the top of your industry and deliver a true revolution for the benefit of mankind? (A focus paper titled ‘The New Low Cost’ by The Boston Consulting Group. Reproduced with permission. Authors: Nicolas Kachaner is Senior Partner and MD, BCG Paris – kachaner.nicolas@bcg.com Zhenya Lindgardt is Partner and MD, BCG New York – lindgardt.zhenya@bcg.com David Michael is Senior Partner and MD, BCG Beijing – michael.david@bcg.com)

‘Identifying key parts, materials... Contd. from P8 Do you have specific products in mind, where localisation would offer you competitive advantage? We are focussing primarily on powertrain, electronics and electric areas. We are also looking at small motors for power windows, and wipers in addition to safety products. We would try and localise products in all of these areas. Is there a scope of expanding your focus to include other aspects of engineering? There certainly is scope, but we are not looking at that at this moment. What synergies do you foresee with other DENSO technical centres globally? India would be the fifth technical centre for DENSO outside Japan. We have one technical centre each in the United States, China, Thailand and Europe. There will be a lot of synergies worked out among our technical centres globally. With many of our European and American customers eyeing the Indian market, we hope to be able to serve them with our knowledge of the Indian market. Indians are also very strong in the English language, and we expect that to work in our advantage. Communication plays a big role in engineering activities. What is DENSO’s experience in other markets, where technical centres are located? I have had the opportunity of working with the technical centre in the US, where I was located for five years. As for the engineering activities, I see no difference in work across our centres. With experience over the years, the US centre has graduated to doing local engineering and design. This will also happen in India in due course.

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16 - 31 December 2010

CORPORATE

New models drive two-wheeler... Contd. from P14 fi nance availability, also pushed up total motorcycle sales during the period. Rural demand increased owing to a continued growth in farm incomes, whereas urban demand remained stable due to rising income levels. Attractive fi nance schemes from Bajaj Finance and other players also fuelled growth. With the momentum in new model sales likely to continue over November 2010 to March 2011, CRISIL Research expects motorcycle demand to grow by 18-20 percent in FY11 (Ref: Exhibit 3).

Increased Model Options Drive Scooter Demand Demand growth for scooters more than trebled to 52 percent during April-October 2010 from

Exhibit 5: Market share in scooter segment

Source: CRISIL Research 14 percent in the same period in the previous year, as the entry of M&M widened model options for customers and the positioning of these models as family vehicles expanded the customer base for scooters. Increased sup-

ply from Honda Motorcycles & Scooters India (HMSI) improved availability of scooters in the market. M&M’s models Duro and Rodeo, introduced in September 2009, gained customer accept-

ance owing to their ready availability and comparable features to the segment’s leading model. As a result, M&M’s marketshare rose to eight percent in April-October 2010 from three percent in the same period in the previous year. Rising demand for TVS’ Wego, introduced in January 2010, enabled the company to maintain its marketshare at 22 percent during the period. Player-positioning of these new models as unisex family vehicles, reinforced by focused promotions, increased the acceptance of scooters among males, expanding the customer base further. Increased model options and easy availability of models will lead to a 32-34 percent growth in the scooters segment in FY11 (Ref: Exhibit 4).

De-bottlenecking of supply at HMSI and rising sales of M&M’s Duro and Rodeo contributed almost 50 percent of the increase in volumes in April-October 2010, as compared to the same period in the previous year (Ref: Exhibit 5). Since capacity constraints of leading players are likely to continue, new models will drive two-wheeler demand growth. CRISIL Research expects twowheeler demand to grow by 20-22 percent in FY11. (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 the CRISIL’s Ratings division.)

AC Delco India launches motorcycle batteries Our Bureau New Delhi

C Delco India, a division of the GM Technical Centre, has launched motorcycle batteries in the range of 2.5 AH, 5 AH, 7 AH and 9 AH, the company said in a statement. These batteries are available for various models sold by Hero Honda, Bajaj Auto, TVS, Honda Motorcycle and Scooter India, Kawasaki and Suzuki Motorcycle India and are being distributed through its existing network of battery distributors. Rajesh Nangia, Director, AC Delco India said, ‘With an approximate population of over 70 million active motorcycle users, motorcycle batteries segment is set to emerge as a huge market opportunity.’ AC Delco India is a prominent supplier of aftermarket auto components. The company sells lubricants, batteries, brakes, fi lters, drive shaft, air conditioning parts and wipers for different brands of vehicles. Currently, it caters to after market through a network of over 300 wholesale distributors and their branches.

Tata’s new bonanza... Contd. from P1 the warranty is also being extended to all existing owners of the car, a company release stated. The move came after sales of the car fell to a drastic low of 509 units in November. In addition, all new buyers have the option to avail of a comprehensive maintenance contract at only `99 per month. Interested customers would also have the option of fi nancing up to 90 percent of the vehicle price at easy rates. Till date, TML has delivered over 71,000 Nanos. Since August this year, the company has already begun open sales of the Tata Nano, and it is already freely available in 12 states. Retail sales have substantially increased in the fi rst five states of open sales. By March 2011, the company will cover the entire country with open sales.

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GLOBAL WATCH

16 - 31 December 2010

BMW outpaces Audi, Mercedes in the US B

MW outpaced sales growth at competitors Audi and Mercedes-Benz last month as the revamped 5-Series sedan and new X1 sport utility vehicle attracted buyers, according to a report in Bloomberg. Deliveries of BMW, Mini and Rolls-Royce models rose 20 percent from a year earlier to 129,014 vehicles in November, the Munich-based automaker said in a statement. Sales by Volkswagen’s Audi division increased 5.2 percent to 87,050 vehicles. Deliveries by Daimler’s Mercedes-Benz, including the Smart city-car brand, jumped 14 percent to 112,300. Growth in China and a rebound in the US are propelling a recovery in luxury car demand following the global recession. The 5-Series, X1 and new Mini Countryman have

given BMW extra momentum. The November sales increase, BMW’s biggest monthly gain this year, lifted 11-month deliveries to 1.32 million vehicles, a gain of 14 percent. Audi said its deliveries in the 11 months through November surpassed the full-year sales record set in 2008, with more than 1 million vehicles sold. The pace of growth slowed last month after ‘super’ performance a year earlier, when the manufacturer received a boost from the German government’s carscrapping sales incentives, said Esther Bahne, a spokeswoman at Audi. The VW unit, which aims to overtake BMW as the luxury auto sales leader by 2015, would have reported a decline in deliveries last month without the roughly 7,500 A1 cars that customers

BMW 5 Series

bought in November, Bahne said. The subcompact was introduced in September. BMW’s revamp of the 5-Series boosted deliveries of the sedan by 87 percent to 20,702 cars. BMW sold 9,160 X1s, topping 100,000 deliveries for the SUV since it was

introduced in October 2009. The Mini brand sold 4,165 units of the Countryman, which went on sale in September as the division’s fi rst four- door model. The model accounted for 20 percent of Mini sales last month, BMW said. The BMW brand defended its

lead this year with 11-month sales rising 15 percent to 1.11 million vehicles. Daimler’s MercedesBenz brand increased sales 16 percent to 1.06 million vehicles in the period, while Audi deliveries climbed 15 percent to 1,003,900 cars and SUVs.

Mitsubishi to invest $532 million in Thai facility M

itsubishi plans to invest 16 billion baht ($532 million) in a new facility in Thailand where it is likely to manufacture a global compact model in March 2012. The Tokyo-based carmaker will produce 150,000 units a year of the new model. The company aims to export the small car to overseas markets including Europe and Japan, according to a recent statement by President Osamu Masuko. The sale price will be 400,000 baht in Thailand for the car, which is likely to be unveiled at the Geneva Auto Show in March 2011. Annual production capacity at Mitsubishi’s third Thai plant may eventually rise to 200,000 units. The new model will be an affordable, fuel-efficient car with a 1.0 to 1.2 litre engine that will be exported from Thailand. Auto production in Thailand surged 76 percent to 1.35 million between January and October, according to the Thai Automotive Club. Nissan moved Japan production of its Micra/ March compact, designed for developed and emerging nations, to Thailand. Honda and GM have also built plants in the nation, while Ford said in June that it plans to build a $450 million car factory in Rayong province, its fi rst wholly owned factory in the country. The new plant will boost Mitsubishi’s produc t ion c apacit y in Thailand to 400,000 units a year, Masuko said. Mitsubishi also announced that it had agreed to start a joint study with the Thai government to begin fleet tests of electric vehicles starting with the company’s i-MiEV minicar. Mitsubishi is selling the i-MiEV in Europe, Japan, Hong Kong and Australia. In addition, rebadged versions of the i-MiEV will be sold in Europe as the Peugeot iOn and Citroen C-Zero. Mitsubishi is collaborating on initiatives to promote EV use with governments such as Monaco, Iceland, Denmark and Singapore. The Thai government will expand the country’s charging infrastructure as part of the agreement.

16 - 31 December 2010

GLOBAL WATCH

Auto Monitor

Daimler invests in South African facility

US Govt proposes new rules for rear visibility D in cars

earview cameras could become more common in future cars and trucks under new rules that the government recently proposed to address concerns about drivers unintentionally backing over children, according to a report in the Associated Press. T he Tr a n s p o r t a t i o n Department proposed new requirements to improve rear visibility in cars by the 2014 model year. Most carmakers would meet the requirements by installing rear-mounted video cameras and in-vehicle displays. Targeting the so-called blind zones in large sport utility vehicles and pickups, Congress required the safety upgrades in 2008 in response to dozens of cases of children getting backed over by cars. The legislation was named after Cameron Gulbransen, a two year-old New York boy who was killed when his father accidentally backed over him in his driveway.

Blind Zones ‘There is no more tragic accident than for a parent or caregiver to back out of a garage or driveway and kill or injure an undetected child playing behind the vehicle,’ said Transportation Secretary, Ray LaHood. He said the changes would ‘help drivers see into those blind zones directly behind vehicles to make sure it is safe to back up.’ Nearly 300 people are killed and 18,000 injured each year because of backovers, according to data kept by the National Highway Traffic Safety Administration. Nearly half the deaths involve children under age 5 and the crashes also affect the elderly. Many of the deaths involve busy parents juggling careers and children and toddlers who get behind a parked car, not realising the inherent dangers. In about 70 percent of the cases, a family member is responsible for the death, said President, Kids and Cars, a Kansas-based safety group, Janette Fennell. ‘You’re talking about people who love their children more than anyone,’ Fennell said. ‘How do you go on if you’ve killed your own child or grandchild?’

Object Detection Automakers have been adding video cameras and object detection sensors to vehicles to help drivers when backing up or parking. But the backup cameras are still optional equipment on most vehicles and only about 20 percent of 2010 vehicles have the cameras onboard. The proposal is expected to be completed next year after a public comment period. Under the plan, 10 percent of the vehicle fleet will need to meet the standards by the 2012 model year, followed by 40 percent in 2013 and all new vehicles by 2014. The rules will apply to all passenger cars, SUVs, pickup trucks, minivans and other vehicles weighing up to 10,000 pounds.

aimler is likely to inject $290 million into its South African facility over the next four years, providing a boost to the country’s car manufacturing industry, which has been disrupted by industrial action this year. The factory in the Eastern Cape province was one of four chosen to produce the new Mercedes-Benz C-Class, scheduled for launch in 2014, alongside plants in China, Germany and the US. Chief Executive, MercedesBenz South Africa, Hansgeorg Niefer said that the investment would bring ‘more than a dozen new technologies to South Africa’, adding that technical capacity at the plant would

increase from 45,000 to 65,000 units a year. About 70 per cent of the factory’s output is exported, mostly to Asia. South Africa’s carmakers were hit in August by a widespread strike, which ended with the companies agreeing to an annual pay increase of 10 per cent. Manufacturers warned that the wage pressures

could threaten the South African operations of companies including Volkswagen, Toyota and GM. Rising electricity costs are another concern, with tariffs set to rise by 25 per cent in each of the next three years. But Daimler’s announcement represented a ‘definite vote of confidence in the future

of the industry in South Africa’, said Automobile Manufacturers Employers’ Organisation’s Nico Vermeulen. He praised a government scheme aimed at increasing annual vehicle production to 1.2m units by 2020, saying that it had ‘provided a clear framework on which to plan over the next decade’.

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GLOBAL WATCH

16 - 31 December 2010

Toyota, Daimler, BMW adopt Tesla’s laptop battery strategy for EVs T

oyota, Daimler and BMW are turning to laptops for a cheaper way to power their electric cars - and their sales, according to a Bloomberg report. Automakers are testing packs of lithium-ion batteries assembled by Silicon Valley startup Tesla Motors costing less than bigger, car-only batteries favored by GM, Nissan and Mitsubishi. A pack of 6,831 cylinder-shaped cells made by Panasonic powers Tesla’s $109,000 Roadster sports car for up to 245 miles (nearly 295km) per charge. The car industry will help lithium-ion battery makers more than triple sales to 5 trillion yen ($60 billion) in a decade from 1.5 trillion yen in the year end-

as much to produce as gasolineengine cars because the batteries are so expensive, according to consultant Frost & Sullivan. Sales of EVs and hybrids, including plug-in models, will reach about 954,000 worldwide this year, or about 2.2 percent of all car sales, JD Power and Associates. Government subsidies may help boost sales of plug-in hybrids and EVs to 9 percent of auto sales in 2020, Bloomberg New Energy Finance estimated last month. Panasonic, the majority shareholder in Sanyo, is the main supplier of lithium-ion cells to Tesla and last month bought a $30 million stake in the Palo Alto, California, company. Toyota and Daimler also own Tesla stakes.

ing in March, according to Sanyo Electric, the world’s biggest maker of the batteries. Rechargeable consumer-electronics batteries benefit from an economy of scale that may help cut manufacturing costs and sticker prices in the nascent electric-car industry, said Koji Endo, a Tokyo-based analyst at Advanced Research Japan. ‘It may lead to the total component cost of an electric car getting lower than that of a gasoline car,’ Endo said. EV prices are higher than three-quarters of the autos now sold, according to Bloomberg New Energy Finance, with GM’s Chevrolet Volt selling for $41,000 and Nissan’s Leaf for $32,780. Electric vehicles cost about twice

Chevrolet Volt

Panasonic boosted its annual production capacity for the small batteries by 9 percent to 1.4 billion units after opening a plant in Osaka, Japan. The company wants to increase sales of ener-

Exhibit at the prospering manufacturing hub of Automobiles & Auto Components

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gy-related products because of tougher competition in its television-making business. Packs assembled by Tesla power Daimler’s electric Smarts and Mercedes-Benz A-class cars, and Toyota will use Tesla’s smallcell packs in an electric RAV4 in 2012. BMW leased 450 Minis powered by laptop cells, and Volkswagen studied the technology at its California facility. The larger lithium batteries cost about $700-$800 per kilowatt hour to produce, while mass-produced packs using small laptop cells may cost $200, said Founder and Former Chief Executive Officer, Tesla, Martin Eberhard. Factories making small cells are running at high capacity, Eberhard said. That also benefits EV makers who don’t have the resources to develop their own batteries, said President, Advanced Automotive Batteries, Menahem Anderman. GM has partnered with South Korea’s LG Chem for the Volt pack and Nissan has partnered with NEC, Japan’s biggest personal-computer maker, for the Leaf. Toyota is working with Tesla on the electric RAV4, while its plug-in Prius hybrid and a small, electric car planned for 2012 employ larger batteries. ‘When the customer decides ‘This is the car I want,’ we want to be that full-line maker who has the answer for that customer,’ President, Toyota, Akio Toyoda said. ‘By using both car batteries and laptop batteries, we are able to provide customers with a wider variety of choice.’ The alliances with Toyota and Daimler helped Tesla generate an initial public offering in June that raised about $226 million. A123 Systems, a Watertown, Massachusetts-based lithiumion battery maker part-owned by General Electric, also is promoting small, cylindrical cells originally designed for power tools. Lithium-ion batteries in consumer electronics have a history of recalls because of overheating that can cause a fi re. Nokia Oyj, the world’s largest mobile-phone maker, offered in 2007 to replace as many as 46 million Panasonic phone batteries. Panasonic now uses an insulator fi lm between electrodes to limit the risk of overheating, said Yuji Tsuzaki, a spokesman for the battery unit. Sony recalled 9.6 million lithium-ion cells in 2006 because metal particles that got into cells during manufacturing could cause short circuits and overheating. That remains an issue for Takenobu Inaba, 27, who was shopping at a Nissan showroom in Yokohama, Japan. He said he would choose a gasoline-powered car over an electric one.

16 - 31 December 2010

GLOBAL WATCH

Auto Monitor

Ford F-150 pick-ups shipments delayed by parts shortages F

ord is delaying the shipment of some of its 2011 F-150 pick-ups because of a parts shortage, according to Bloomberg report. The shortage affects a ‘small population’ of trucks and will be resolved ‘soon,’ Anne Marie Gattari, a Ford spokeswoman, said without being more specific. Most of the thousands of 2011 F-150 pick-ups Ford has stockpiled in parking lots around the Detroit area still will be shipped as the new model is introduced nationwide, she said. Ford has equipped the 2011 version of the F-150, the top-selling vehicle in the United States, with more fuelefficient engines to boost sales to

Renault team renamed Lotus Renault

enault has sold its remaining stake in its Formula One team to Luxembourgbased private investment fi rm Genii Capital. The Renault F1 team will race as Lotus Renault GP next year under a long-term partnership with Malaysianowned sports car company Group Lotus. Group Lotus will subsequently become a major equity partner in Lotus Renault, which it will co-own with Genii Capital. Unless there is a further name change by their opponents, Lotus Renault will be competing against the existing Team Lotus - also Malaysian-owned and also powered by Renault engines. Both plan to race in new blackand-gold liveries harking back to the glory days of the late 1970s when Colin Chapman’s original Lotus team was winning races and championships. Team Lotus, which made its debut this year as Lotus Racing and is owned by aviation entrepreneur Tony Fernandes, is at odds with the Lotus Group owned by carmaker Proton in a battle over the use of the brand. Fernandes claims the rights to Chapman’s Team Lotus name, which has been kept separate from the car company. The dispute is currently heading for the High Court in London, although the new season will be well under way before any hearing. ‘We’re well aware that there has been a lot of controversy around the usage of our brand in F1 and I’m delighted to be able to formally clarify our position once and for all: We are Lotus and we are back,’ said Chief Executive Officer, Lotus Group, Dany Bahar. ‘Following the return of the Lotus name to Formula One in 2010, under license from Group Lotus, this historic announcement marks the complete return of the Lotus manufacturer to the sport, with the full backing of its parent company Proton,’ he added. The title sponsorship agreement will run until the end of the 2017 season and Renault will continue to supply engines, technology and engineering expertise.

buyers seeking to avoid higher gasoline costs. Ford sold 473,461 F-series trucks this year through November, a 30 percent gain from the same period in 2009.

Top Seller ‘Any vehicle that is hot is important to Ford, and it’s doubly bad in the case of the F-150 because it’s such a volume product,’ said Principal, Automotive Researcher, 2953 Analytics, Jim Hall, ‘It’s a negative for Ford because of the lost revenue and the lost volume. It’s one of the most profitable vehicles in their range.’ ‘A certain population of trucks is being held due to limited part availability,’ Gattari said. She

declined to identify the part or the number of trucks being held back from delivery. ‘We’re awaiting that part so we can ship this small population of trucks.’ The F-series pick-ups have been the top-selling trucks in the United States for 33 years, according to Ford. After customers complained about fuel economy, Ford added a 3.7-liter V6 engine to the 2011 F-150 that gets 23 miles per gallon on the highway and 16 mpg in city driving, the automaker said. Ford also is offering new 5.0-liter and 6.2-liter V8 engines on the 2011 model. Next year, Ford will add a turbo-charged, direct-injected V6 engine to the lineup.

Auto Monitor

GLOBAL WATCH

16 - 31 December 2010

International auto round-up EUROPE

AMERICAS

PSA targets fleet market with Citroen C-Zero electric car

Ford begins to ship all-electric Transit Connect vans

PSA/Peugeot-Citroen will offer its Citroen C-Zero EV to business customers through a car sharing service in France beginning in January. PSA said it expects fleet customers who require cars for shortdistance needs, will represent a large part of its EV business in France and in the rest of Europe. The C-Zero will be offered through a service called Citroen Business Connected, which is based on an alliance between PSA’s Citroen Business France division and the French car-sharing operator Carbox. Business customers will be able to reserve and pickup the C-Zero models at locations around France beginning in January. Citroen Business Connected will offer car maintenance services and will ensure that the cars remain charged. The Citroen C-Zero and its sister model, the Peugeot iOn, are based on the Mitsubishi i-MiEV.

Ford recently began shipping its fi rst all electric Transit Connect small business vans, the fi rst in a wave of new batterypowered vehicles slated for release by the automaker over the next two years, according to a report in the Detroit News. Initially, the $57,400 Transit Connect will be built in limited numbers — about 600-700 vehicles for 2011. The body is made in Turkey and fi nal installation of the electric motor and battery will be performed at AM General in Livonia. Ford has sold about 30,000 gas-powered Connects. Ford collaborated with Azure Dynamics to develop the commercial van’s electric technology, getting it ready for sale in 13 months. The Transit Connect can travel about 80 miles on all-electric power, reaching a top speed of 75 miles per an hour. It will come with a 10-year, 120,000-mile warranty. Ford plans to release an all-electric Ford Focus in 2011 in limited numbers, between 10,000 and 20,000 in the fi rst year, with production increasing in 2012.

Russian car sales leap by 80 percent in November Russian new car sales rose 80 percent in November, the most in two years, as the economy rebounded and the government extended its rebate program for used vehicles, according to a Bloomberg report. Sales of cars and light trucks reached 189,902 vehicles last month, pushing the year-to-date total to 1.7 million, or 28 percent more than for the same period last year, the Association of European Businesses said. Sales may reach 1.9 million units this year, which is ‘significantly beyond any previous forecasts,’ said Chairman, AEB’s Automobile-Manufacturers Committee, David Thomas in a statement. The government is spending at least 21.5 billion rubles ($687 million) this year on cash incentives for automobile purchases. Russia is following countries around the world that extended incentive programs to reverse slumps in car sales during the worst global slowdown since World War II.

German car makers on hiring mode BMW is beginning a drive to recruit 2,600 new employees by 2011, according to a report in Bloomberg. The automaker aims to add expertise in electric vehicles, hybrid powertrains and cleaner combustion engines to develop models with lower carbon-dioxide emissions to meet environmental regulators’ demands for cleaner-running cars, Michael Rebstock, a BMW spokesperson said. In the two years up to 2009, BMW scaled back the work force by 11,000 employees to 96,230 as a part of CEO Norbert Reithofer’s cost-cutting measures to boost profitability. The company now plans to recruit for research and development and purchasing and sales jobs. BMW hopes to expand growth from an anticipated 1.4 million deliveries this year to 2 million deliveries by 2020. Other German automakers are also hiring. About 50,000 jobs could be created globally by Volkswagen within five years. The company is planning 10 percent of the positions in Germany. Daimler has added 400 workers this year at its factory in Rastatt, Germany, where it builds Mercedes-Benz Aand B-class models.

Ex-Magna co-CEO Wolf to join Continental board Former Magna International’s Co-CEO Siegfried Wolf will join the supervisory board of rival supplier Continental. Wolf, 53, resigned from Magna in November to become Chairman of Russian Machines OJSC, part of Russia’s GAZ Group, leaving Don Walker as Magna’s sole CEO. Chairman, Continental, Wolfgang Reitzle said Wolf’s international automotive industry experience will enhance the board of the supplier. In German companies, supervisory board members have a non-executive, monitoring role over a management board. Wolf will continue as Chairman of Russian Machines, which has industrial and engineering operations in the automotive, aviation, rail and road construction industries. An Austrian native like Magna Founder and Chairman Frank Stronach, Wolf joined Magna Europe in 1994 and became Magna’s co-CEO in 2005. Wolf helped to expand Canada-based Magna’s business with European-based customers and he was a key figure in Magna’s failed bid to buy Opel/Vauxhall from GM during the latter’s short-lived bankruptcy.

GM working on electric two-seater car GM is working on a two-seater concept car EN-V, or ‘envy’ and its target market is buyers in big congested cities such as Shanghai and Beijing. China, in particular, has been a major growth market for GM and its joint venture partner Shanghai Automotive Industry. GM debuted the concept car in March at the 2010 Shanghai Expo and will bring it to the International Consumer Electronics show in Las Vegas in January. The EN-V, which stands for Electric Networked Vehicle, also will make an appearance next year at the Detroit Auto Show. The car has two main features that give it an edge in urban areas — a small battery for electric-only driving and the ability to communicate wirelessly with other vehicles. GM has equipped the EN-V with specialized technology developed by its OnStar subsidiary that allows it to talk to other cars, anticipate dangers and scan blocks for available parking spaces.

Honda to discontinue ‘Element’ Honda recently said it will discontinue the Element sports utility vehicle after the 2011 model as sales fall for the seventh straight year, according to a Bloomberg report. Deliveries of the Element peaked at 67,478 in 2003 and have declined every year since, dropping to 12,960 this year through November. Consumers have shifted to models like Honda’s CR-V compact crossover SUV, the Tokyo-based company said. ‘Compact SUVs have been one of the strongest segments this decade, but the Element never proved to be a high-volume seller despite its low price,’ said Senior Analyst, Edmunds.com, Jessica Caldwell. ‘It probably suffered from too much competition — even from within its own showroom.’ US auto sales have risen 11 percent this year amid an 18 percent increase in deliveries of sports utility and crossover vehicles, pickups and minivans. Honda’s CR-V, built on the same line as the Element in East Liberty, Ohio, is the top-selling model among US SUVs and crossovers this year, up 4.7 percent to 180,589 units.

Hertz to offer electric Smart cars for rent Hertz will offer electric Smart cars for rent in Washington, DC and San Francisco in the coming months, according to a report in the Associated Press. The electric cars will be available starting this December through a car-sharing program in New York with Washington to follow in the fi rst quarter of next year and San Francisco in the second quarter, Hertz said. The rentals are part of Hertz’s global electric vehicle program that offers electric and plug-in hybrids to car sharing and rental customers worldwide. Smart is offering a limited number of electric Fortwos for lease to companies, governments and individuals. The electric Fortwo has an estimated range of 84 miles on a single charge, although that will vary with terrain and weather conditions. It takes less than eight hours to charge the car’s batteries from a 220-volt outlet.

ASIA Suzuki recalls 227,000 Wagon R, other cars in Japan Suzuki Motor will recall about 227,000 Wagon R mini vehicles and other cars in Japan for two separate defects, according to a recent fi ling with the transport ministry as pointed out by a Reuters report. In one of the recalls, a defective door latch could cause the rear doors to open while driving in the worst case scenario. Subject to that recall are seven models, including the Mazda Motor’s AZ Wagon and another Nissan model, spanning 177,692 cars. The second recall covers two models totalling 49,122 units that have hub caps that are too big for the wheels. There was no report of accidents related to the defects, and the recalls are limited to Japan, Suzuki said in the fi ling.

next autumn. ESC improves a vehicle’s stability by minimising skid as it automatically applies the brakes upon detecting loss of steering control. Certain data shows that ESC realizes a 30 percent cut in the occurrence of accidents. The installation of ESC is widely practiced in Europe, with some 70 percent of passenger cars having it in Germany. In Japan, the device was installed in 12 percent of 4.17 million passenger cars produced in Japan in 2008, according to the Japan Automobile Manufacturers Association. In Japan, the installation of ESC will become mandatory in October 2012 for models that will be newly registered, in October 2014 for existing models and new mini vehicle models, and in February 2018 for existing mini vehicle models, the sources said.

China November car sales up 29 percent

Skoda’s growth in Russia, China fuels record 2010 sales

Automakers in China shipped 1.3 million passenger cars to dealers in November, up 29.3 percent from a year earlier, the official China Association of Automobile Manufacturers (CAAM) said. That compared with wholesale car sales of 1.2 million units in October, up 27.1 percent from a year earlier, according to data provided by CAAM. Break-neck expansion in the world’s biggest auto market has started to taper off from the second quarter as the government imposes measures to keep the economy from overheating. But there has been an upturn in demand since August as many people rush to buy cars before the expiration of government’s policy incentives for small cars at the end of the year.

Skoda, a unit of Volkswagen, said it will post record sales this year, fuelled by sales growth in Russia, China and India as well as further expansion in Eastern Europe, according to a wire services report. Sales in the fi rst 11 months rose 12.3 percent to 702,400 vehicles, the company said in release. Sales in China in the fi rst 11 months of the year rose 56 percent to 167,000 cars and India rose 33 percent to 17,800 vehicles. That’s more than last year’s total sales of 700,000 cars. The carmaker expects to sell about 750,000 vehicles this year, Board Member, Skoda, Juergen Stackmann said in the statement. Total November sales jumped 15.8 percent while volumes in Russia grew 43 percent to 3,498 units in November, pushing 11-month sales up 38 percent to 41,520, according to data from the Association of European Businesses (AEB). Markets in Eastern Europe also expanded, with 16 percent growth in Ukraine, 11 percent growth in Hungary and 19 percent growth in Slovenia, the company said. Skoda is the Czech Republic’s second-largest company by revenue. Its exports make up roughly seven percent of the country’s total exports. Cars and car parts are the biggest export and a key driver of economic growth.

Japan to mandate anti-skid device in passenger cars from 2012 The transport ministry has decided to require that automakers equip passenger cars with a computerised technology to minimise skid, starting with production in 2012, according to Kyodo News agency. The decision was made as the European Union will make the installation of electronic stability control mandatory

16 - 31 December 2010

GLOBAL WATCH

Auto Monitor

UAW, Detroit Big 3 explore proﬁt sharing arrangement G

M, Ford and Chrysler are exploring with the United Auto Workers changes that could give workers a bigger piece of growing profits ahead of next years’ labour contract negotiations. ‘We want to fi nd the best possible bang for all of the employees, across the board, not a program that would pay some and not the others,’ said Head, UAW’s Chrysler Department, General Holiefield. While formal negotiations haven’t begun, union leaders and executives from the automakers have broached profit-sharing changes. It was ‘not just within Chrysler but the Big Three,’ he said. ‘Bob King has got to get his arms around it.’ The union made mid-contract concessions last year, such as giving up full pay for idled workers, before the bankruptcies of Chrysler and GM. The UAW’s four-year labour agreements with three automakers expire September, 2011. Formal negotiations typically begin several weeks before the contracts

Delphi gets certiﬁcation for couplers D

elphi Automotive recently obtained certification from Underwriters Laboratories for its electric vehicle (EV) charge coupler with cable and charge inlet under the component recognition program of Underwriters Laboratories. The UL Recognised components can be sold in charging stations and vehicle-side charging applications in the US and Canada. Delphi’s charge coupler with cable is suitable for stationary charging applications, and Delphi’s charge inlet is a vehicle-side interface that mates to a charging connector to accommodate Level 1 and Level 2 charging of plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV). Delphi also began selling the previously evaluated UL listed portable electric vehicle charger earlier this year. In the development phase of its electric vehicle charge coupler, Delphi held focus groups to better understand consumer preferences for the shape and size of the charger handle and its overall design in terms of material, shape, and ergonomic features. The focus groups were comprised of current hybrid vehicle owners interested in purchasing an EV or PHEV as their next vehicle. Participants were shown various Delphi interconnect prototypes and design renderings and provided feedback on the styling and functionality they preferred and found to be most comfortable and convenient. UL is an independent product safety certification organisation that has been testing products and writing standards for safety. Delphi is a leading global supplier of electronics and technologies for automotive, commercial vehicle and other market segments.

expire. GM, Ford and Chrysler go into next year’s negotiations seeking a deal that keep the companies competitive with foreign rivals, while the union aims to ensure workers share in the upswing after making sacrifices, labour experts said. ‘The companies want to try and reward the hourly workforce without bringing back some of the cost items that made them non-competitive,’ said Former GM negotiator, Art Schwartz who now runs a labour management consulting. ‘At this point, it’s premature to talk about 2011 negotiations seeing that they are several months away,’ John Stoll, a Ford spokes-

man, said in an interview. ‘We believe all stakeholders should benefit from the company’s success.’ Ford, the world’s most profitable automaker, in October reported a third-quarter net income of $1.69 billion and GM, which went public again in November, reported a thirdquarter net income of $2.16 billion. While Chrysler reported a net loss of $453 million through three quarters, the Auburn Hillsbased automaker’s results have been improving and the company has said it will be profitable in 2011. The UAW is probably having similar conversations with the three automakers, said Arthur Wheaton, a Cornell University

labour expert. Companies like profit sharing because it’s a cost only if they’re making money, Wheaton said. Payments have been small and

sporadic because the companies haven’t been consistently profitable. ‘Part of it’s also the formula and how they base it,’ Wheaton said.

Auto Monitor

PRODUCT INDEX

Product ............................................................................................... pg no. 3d coordinate measuring machine ......................................................................17 Acc. Padel sensor assy .........................................................................................19 Actuators .............................................................................................................31 ADEA-Automotive Dealership Excellence Awards ................................................24 Alternatives..........................................................................................................7 Aluminium casting ..............................................................................................5 Auto monitor-10th anniversary ...........................................................................30 Auto parts ............................................................................................................37 Automation .........................................................................................................20 Automation and test equipment .........................................................................23 Automotive electrical components......................................................................39 Axles ....................................................................................................................37 Batteries ..............................................................................................................7 Biodiesel ..............................................................................................................31 Bolts ....................................................................................................................37 Brake pads ...........................................................................................................7 Braking ................................................................................................................5 Building automation ...........................................................................................20 Car paints ............................................................................................................8 Car polish ............................................................................................................8 Ced coating machines..........................................................................................20 Ced/ktl coatings ...................................................................................................41 Chemlok coating machines..................................................................................20 Clutch plates & cover assemblies .........................................................................7 CNC ......................................................................................................................47 CNC cutting machines..........................................................................................20 CNC hmcs.............................................................................................................47 CNC laser cutting machines .................................................................................20 CNC machines ......................................................................................................47 CNC oval turning centers .....................................................................................47 CNC oxy fuel cutting machines ............................................................................20 CNC plasma cutting machines .............................................................................20 CNC turn mill centers ...........................................................................................47 CNC turning center ..............................................................................................47 CNC vertical machining center.............................................................................47 CNC/vmc machines ..............................................................................................13 Coating machines ................................................................................................20 Coating plants......................................................................................................20 Coating systems ...................................................................................................20 Cold forming machines .......................................................................................23 Commercial vehicle tyres.....................................................................................27 Compaction & concreting equipment .................................................................43 Composite processing equipment .......................................................................23 Compression springs............................................................................................3 Countersinks ........................................................................................................BIC Crankshaft machines ...........................................................................................23 Cutting machines.................................................................................................20 Cv joint machines ................................................................................................23 Cylindrical grinders.............................................................................................. BC Diamond tools .....................................................................................................BIC Die-casting...........................................................................................................35 Dies......................................................................................................................35 Diesel engines (10-1000hp) ..................................................................................43 Diesel/kerosene engines. Power sprayer .............................................................43 Dip spin coating machines ..................................................................................20 Dollies .................................................................................................................6 Drilling tools ........................................................................................................BIC E-coatings solutions .............................................................................................41 Egr valve ..............................................................................................................19 Electronic control unit .........................................................................................19 Environmental .....................................................................................................12 Ex series ...............................................................................................................47 Exhibition - HiTech Manufacturing Show ............................................................34 Exhibition-Engineering Expo ...............................................................................1,4,38,40,45 Extension springs.................................................................................................3 Factory automation .............................................................................................20 Failure analysis ....................................................................................................31 Filters...................................................................................................................7 Fluidized bed coating machines ..........................................................................20 Foldable large container .....................................................................................6 Foldable small crates ...........................................................................................6 Form&cylindercity testers ...................................................................................17 Front axles ...........................................................................................................37 Fuels- diesel .........................................................................................................31 Gases ...................................................................................................................31 Gasoline systems .................................................................................................7 Gear pumps .........................................................................................................7 Glide coating machines .......................................................................................20 Glow plugs ...........................................................................................................9 Gun drills .............................................................................................................BIC Health & safety (ehs) consulting ..........................................................................12 Hollow bars .........................................................................................................25 Horizontal boring machines ................................................................................23 Horizontal CNC machines ....................................................................................47 Horizontal machining center ...............................................................................23,47 Horizontal turning centers ..................................................................................23 Horns ...................................................................................................................7 Hot,cold & warm forged machined parts ............................................................39 Ic engine valves ...................................................................................................39 Imaging & vision systems ....................................................................................20 FIC : Front Inside Cover BIC : Back Inside Cover BC: Back cover

16 - 31 December 2010

Industrial metrology............................................................................................17 Inell products ......................................................................................................9 Kx series ..............................................................................................................47 Kxg series ............................................................................................................47 Lean assembly lines .............................................................................................29 Lighting ...............................................................................................................7 Lightweight diesel engines ..................................................................................43 Lightweight petrol ...............................................................................................43 Linear assembly lines ..........................................................................................29 Lubricants............................................................................................................7 Machinery steel ...................................................................................................11 Manifold heaters .................................................................................................9 Materials handling solutions ...............................................................................6 Metal cutting tools...............................................................................................49 MetďŹ n compounds ..............................................................................................50 Milling cutters......................................................................................................BIC Modular tooling system .......................................................................................BIC Motion controls ...................................................................................................31 Motion systems ....................................................................................................31 Motors & servo motors ........................................................................................31 Multi gauging systems .........................................................................................17 Mx series ..............................................................................................................47 Nuts .....................................................................................................................37 Nx series ..............................................................................................................47 Opto-electropnic systems ....................................................................................17 Paint shop equipments .......................................................................................20 Paint shop machines ...........................................................................................20 Pallets ..................................................................................................................6 Petrol & fuel oils ..................................................................................................31 Plastic moulded components ..............................................................................39 Power tiller ..........................................................................................................43 Pre tereatment systems .......................................................................................20 Precision grinders ................................................................................................BC ProďŹ lers and gantry machines - 3 & 5 axis ..........................................................23 Pumpsets and power reapers ..............................................................................43 Quality steel ........................................................................................................11 Rader systems......................................................................................................31 Reamers...............................................................................................................BIC Rear axles ............................................................................................................37 Relays ..................................................................................................................7 Robotic assembly lines & robotic weld cells ........................................................29 Rotary assembly machines ..................................................................................29 Roundness ...........................................................................................................17 Rubber parts for automobile industry.................................................................16 Scada & dcs implimentaion .................................................................................20 Seat assemblies ...................................................................................................39 Sensors ................................................................................................................31 Servo drives .........................................................................................................31 Smart logistics leadership series .........................................................................22 Solid carbide drills ...............................................................................................49 Solid carbide drills with ic ...................................................................................49 Solid carbide mills ...............................................................................................49 Solid carbide reamers..........................................................................................49 Solid carbide reamers with ic ..............................................................................49 Solid carbide special drills ...................................................................................49 Solid carbide special mills ...................................................................................49 Solid carbide special reamers ..............................................................................49 Spark plug ...........................................................................................................7 Spark plugs ..........................................................................................................9 Special machines .................................................................................................23 Speciality chemicals ............................................................................................15 Spray painting equipment ...................................................................................8 Stack nest crates ..................................................................................................6 Stackable crates ...................................................................................................6 Starter motor .......................................................................................................7 Strip steel.............................................................................................................11 Suspension ..........................................................................................................5 Sx series ...............................................................................................................47 Taps .....................................................................................................................BIC Test systems .........................................................................................................31 Tool bits ...............................................................................................................11 Tool steel .............................................................................................................11 Torsion springs ....................................................................................................3 Transmission........................................................................................................5 Truck tyres ...........................................................................................................21 Two wheeler tyres................................................................................................21 Tyre chanding accessories ...................................................................................50 Tyre repair tools...................................................................................................50 Tyre service tools .................................................................................................50 Tyres ....................................................................................................................21 Vaccum pump .....................................................................................................19 Vertical line series ...............................................................................................47 Vertical machining center....................................................................................33 Vertical machining centers 3 & 5 axis ..................................................................23 Vertical turning centers .......................................................................................23 Vision inspection systems ....................................................................................29 Vmc-linear series .................................................................................................47 Wheel alignment accessories ...............................................................................50 Wheel balancing accessories ...............................................................................50 Wiper blades ........................................................................................................7 Wire forms ...........................................................................................................3

16 - 31 December 2010

Auto Monitor

CLASSIFIED

Aftermarket Retail Sales & Service Dealer Network Spare Parts

Feel the pulse of the trade Auto Monitor India’s No. 1 Magazine for Automotive News, Views & Analysis

ADVERTISERS’ LIST Pg No....... Advertiser ..........................................................................Tel ..........................................E-mail ..............................................................Website 13 ............ Yamazaki Mazak India Pvt Ltd ..........................................+91-20-27351417 ...................sudhir_patankar@mazakindia.com ................www.mazak.com 24 ............ ADEA - Automotive Dealership Excellence Awards ............+91-22-30034650...................prachi.mutha@infomedia18.in 50 ............ Ashfa Corporation .............................................................+91-22-25107461 ...................ashfa91@hotmail.com.....................................www.ashfacorp.com 11 ............ Assab Sripad Steels Ltd ......................................................+91-44-24951980...................chennai@assabsripad.com ..............................www.assabsripad.com 30 ............ Auto Monitor - 10Th Anniversary ......................................+91-22-30034651 ...................b2b@infomedia18.in .......................................www.automonitor.co.in 21 ............ Birla Tyres .........................................................................+91-33-22814717 ...................advt@birlatyre.com.........................................www.birlatyre.com 7 .............. Bosch Limited ...................................................................+91-80-22999228 ...........................................................................................www.boschindia.com 17 ............ Carl Zeiss India Pvt Ltd ......................................................+91-80-43438102 ..................imtndia@zeiss.co.in.........................................www.zeiss.co.in 20 ............ Coatec India ......................................................................+91-160-2648700 ..................info@coatecindia.com.....................................www.coatecindia.com 9 .............. Eisenacher Medien ............................................................+91-20-24226300...................info@beruindia.com .......................................www.beru.com 5 .............. Endurance Technologies Pvt Ltd .......................................+91-240-2551700 ............................................................................................www.endurancegroup.com 1,4,38,40,45 ........ Engineering Expo ...................................................+91-9920401226.............................................................................................www.engg-expo.com 49 ............ G W Precision Tools India Pvt Ltd ......................................+91-80-40431252 ..................info@gwindia.in ..............................................www.gwindia.in 43 ............ Greaves Cotton Limited .....................................................+91-22-24397575 ...................rrao@greavesmail.com ...................................www.greavescotton.com 37 ............ GS Auto International Ltd ..................................................+91-161-2511001 ...................mkt@gsgroupindia.com ..................................www.gsgroupindia.com BIC........... Guhring India Private Limited ...........................................+91-80-40322500 ..................info@guhring.in .............................................www.guhring.in 34 ............ HiTech Manufacturing Show .............................................+91-9820373804 18 ............ IMTMA ...............................................................................+91-88-66246600 ..................imtma@imtma.in ............................................www.imtma.in 26 ............ IMTMA ..............................................................................+91-20-66246600 ..................rohit@imtma.in...............................................www.imtma.in 12 ............ Indus Environmental Services Pvt Lt .................................+91-11-26271433 ...................envirotrends@indusenviro.com ......................www.envirotrends.net 44 ............ Inter Ads Exhibitions ......................................................... +91 124 4524 200 ...............busworld.india@interads.in 25 ............ ISMT Limited .....................................................................+91-20-66024901 ..................www.ismt.com 27 ............ JK Tyre & Industries Ltd. ....................................................+91-11-23311112 ....................anilgupta@jkmail.com ....................................www.jktyre.com 47 ............ Jyoti CNC Automation ........................................................+91-2827-287081...................info@jyoti.co.in ...............................................www.jyoti.co.in 41 ............ Kamal Envirotech ..............................................................+91-124-4367305...................enquiry@giaatech.com ...................................www.giaatech.com 15 ............ Lanxess India Pvt.Ltd. .......................................................+91-22-21729200 ...................www.lanxess.in 3 .............. M And M Auto Indus Ltd ....................................................+91-124-4763200 ...................corporate@mandmsprings.com ......................www.mandmsprings.com 23 ............ MAG Industrial Automation Systems .................................+91-80-40677000..................sales-India@mag-ias.in ...................................www.mag-ias.in 33 ............ Makino India Private Limited ............................................+91-80-28419500 ..................slim@makino.co.in ..........................................www.makino.com BC ............ Micromatic Grinding Technologies Ltd. .............................+91-120-2712137 ...................info@micromaticgrinding.com .......................www.micromaticgrinding.com 31 ............ Moog Motion Controls Pvt Ltd...........................................+91-80-40576666 ..................ashashank@moog.com ...................................www.moog.com/industrial 35 ............ Ningbo Elite Mold Manufacture Co Ltd. ............................+86-574-8614-8158 ...............tracy@cmmould.com.cn .................................www.elitemould.cc 19 ............ Padmini VNA Mechatronics Pvt. Ltd..................................+91-124-3207398 ...................sales@padminiengg.com ................................www.padminivna.com 8 .............. Rohan Standox Autolack ...................................................+91-22-65803331...................sales@spraytec.net..........................................www.spraytec.net 50 ............ Sarveshwari Technologies Ltd. ..........................................+91-11-27023750 ...................info@sarveshwari.com ....................................www.@sarveshwari.com 6 .............. Schoeller Arca Time Material Handling Solutions Ltd .......+91-22-42119500 ...................info@satmhs.com............................................www.satmhs.com FIC ........... Sellorap Manufacturing Pvt Ltd. .......................................+91-22-66750560 ..................contact@sellowrap.com ..................................www.sellowrapepp.com 16 ............ Selvel Auto Traders ............................................................+91-130-2243148 ...................senior@ndf.vsnl.net.in ....................................www.senior-rubbers.com 28 ............ SIAT Expo...........................................................................‘+91-20-30231350 ..................siat2011@araiindia.com ..................................www.araiindia.com 22 ............ Smart Logistics Leadership Series .....................................+91-22-30034650...................prachi.mutha@infomedia18.in 46 ............ TAGMA ...............................................................................+91-22-28526876 ...................diemould@tagmaindia.org .............................www.tagmaindia.org 29 ............ Titan Industries Limited ....................................................+91-4344-664846..................senthilm@titan.co.in .......................................www.titanautomation.in 32 ............ Triune Exhibitors Pvt Ltd ...................................................+91-80-43307474...................autoshow@triuneexhibitors.com ....................www.triuneexhibitors.com 39 ............ Varroc Engineering Pvt Ltd................................................+91-240-2556227...................varroc.info@varrocgroup.com ........................www.varrocgroup.com 13 ............ Yamazaki Mazak India Pvt Ltd ..........................................+91-20-27351417 ...................sudhir_patankar@mazakindia.com ................www.mazak.com Q Our consistent advertisers

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

Auto Monitor

16 - 31 December 2010

EUROPEAN SALES

New Registrations in Enlarged Europe*-By Manufacturer GROUP

BRAND 2010 SEPTEMBER 2009 SEPTEMBER

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 Mercedes Daimler Smart Other Total Fiat Alfa Romeo Fiat Iveco Lancia Other Total Ford Ford Mercury Volvo Other Total GM Chevrolet Opel SAAB 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 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 Mercedes Daimler Smart Other Total Fiat Alfa Romeo Fiat Iveco Lancia Other Total Ford Ford Mercury Volvo Other Total

% CHANGE

YEAR TILL DATE 2010

-29.25 7.98 -23.49 89.47 0.78

-15.00 -3.43 -1.95 22.12 -56.15 -1.80 -14.40 -6.60 -8.87 -48.37 -26.91 -22.65 38.67 -4.80 3.25 -18.74 53.09 -11.80

1789 456218 98675 399 555292 1 11 1126 1 13 37 1189 9699 9488 13403 32590 23613 584353 64890 1052 650295 80040 798644 63492 79599 4066 1025841 1015692 6 170041 9 1185748 134440 823778 14056 1504 973778 21071 62048 83119 15384 147355 148927 95736 340391 33154 150728 10683 942358

179 62145 13116 36 75297 0 0 141 0 0 1 142 1360 547 1139 3046 3508 80302 8220 114 88636 11252 81415 7602 6964 255 107488 128586 1 20500 1 149088 16681 113922 2705 57 133365 3502 9308 12810 1524 21468 20853 15542 43118 4420 19620 1534 128079

253 57554 17143 19 74716 0 0 109 1 2 6 118 1355 1859 1848 5062 3902 75937 7912 97 83946 10299 103448 6649 10776 321 131493 153591 0 21809 0 175400 17274 116189 2215 130 135808 4091 9966 14057 2952 29370 26959 11208 45293 4281 24145 1002 145210

33461 24874 327 58662 4617 29 4646

35756 25638 702 62096 3994 18 4012

-6.42 -2.98 -53.42 -5.53 15.60 61.11 15.80

275063 200153 5264 480480 28629 273 28902

2921 83603 100440 184043 16733 117914 34 134681 2864 60453 1824 62277 54491 23539 45482 155892 178 279582 3165 4877 1439356

2456 90242 101391 191633 14977 122764 5 137746 2211 74733 2912 77645 49153 22451 47031 171697 184 290516 2362 4413 1545055

18.93 -7.36 -0.94 -3.96 11.72 -3.95 580.00 -2.23 29.53 -19.11 -37.36 -19.79 10.86 4.85 -3.29 -9.21 -3.26 -3.76 34.00 10.51 -6.84

28190 779126 900065 1679191 209384 1073400 125 1282909 18590 486868 14680 501548 474142 234664 354654 1314764 1561 2379785 20370 33945 11929522

179 61841 13116 36 74993 0 0 2 0 0 1 3 1302 484 1053 2839

253 57462 17139 19 74620 0 0 2 1 2 5 10 1269 1794 1742 4805

-29.25 7.62 -23.47 89.47 0.50

0.00 -100.00 -100.00 -80.00 -70.00 2.60 -73.02 -39.55 -40.92

1789 455305 98661 399 554365 1 11 120 1 13 37 183 9240 8865 12560 30665

61396 8220

58285 7912 0 66197 10286 88988 63 10775 321 110433 136158 0 21771 0 157929

5.34 3.89

441508 64890

5.16 9.24 -23.73 -82.54 -35.39 -20.56 -21.82 -19.43

506398 79918 659256 783 79573 4066 823596 888193 6 169740 9 1057948

69616 11236 67873 11 6962 255 86337 109698 1 20461 1 130161

29.36 -100.00 -100.00 -83.33 20.34 0.37 -70.58 -38.37 -39.83 -10.10 5.75 3.89 17.53 5.59 9.25 -21.30 14.33 -35.37 -20.56 -18.26 -16.28 -6.00

-6.02 -17.58

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

GROUP GM

Jaguar Land Rover

Japan

Korea

MAN MG Rover Porsche PSA

Renault

Scania Toyota

Volkswagen AG

Other Total

BRAND 2010 SEPTEMBER 2009 SEPTEMBER Chevrolet 16631 17250 Opel 104955 110028 SAAB 2705 2215 Other 36 109 Total 124327 129602 Jaguar 3502 4091 7851 9193 Land Rover Total 11353 13284 Daihatsu 1520 2952 21462 29346 Honda Mazda 20571 26487 Mitsubishi 12600 8635 Nissan 38841 41976 Subaru 4415 4277 Suzuki 19538 24043 Other 0 17 Total 118947 137733 Daewoo 33015 35205 Hyundai KIA 24773 25529 Other 281 640 Total 58069 61374 MAN Rover Porsche 2848 2448 Citroen 68230 76336 Peugeot 85491 87087 Total 153721 163423 Dacia 15768 13826 92722 104000 Renault Total 108490 117826 Scania Toyota 56185 71065 Lexus 1824 2912 Total 58009 73977 Audi 53969 49057 23442 22347 Seat Skoda 44970 46364 Volkswagen 138944 156426 Other 178 184 Total 261503 274378 1925 1928 1263320 1390224

% CHANGE -3.59 -4.61 22.12 -66.97 -4.07 -14.40 -14.60 -14.54 -48.51 -26.87 -22.34 45.92 -7.47 3.23 -18.74 -100.00 -13.64

YEAR TILL DATE 2010 134155 765723 14051 1383 915312 21071 55858 76929 15378 147309 146981 75853 306549 33070 150056 32 875228

-6.22 -2.96 -56.09 -5.39

271364 199232 4877 475473

16.34 -10.62 -1.83 -5.94 14.05 -10.84 -7.92

27945 647914 776093 1424007 197097 876738 1073835

-20.94 -37.36 -21.59 10.01 4.90 -3.01 -11.18 -3.26 -4.69 -0.16 -9.13

457745 14676 472421 472159 233293 350875 1187301 1561 2245189 14602 10575961

216.67

927

107 86 61 106 253

29.91 -32.56 3.28 -18.87 -18.18

1006 458 615 843 1916

11187 13 14224 3180 1 17418 16863 38 0 16901 20 6143 0 20 6183

0.72 23.08 -7.23 19.43 100.00 -2.34 8.15 2.63

91838 122 136580 35054 26 171782 123928 301

8.14 130.00 45.82

124229 261 57982 5 114 58362

773 0 24 472 2289 3216 4 102 908 7015

88.49 -75.00 -41.10 9.92 31.09 25.00 -19.61 38.44 19.23

6190 6 46 1933 17698 33183 84 672 9202 62824

551 109 62 722

-19.06 -7.34 -25.81 -17.87

3695 921 387 5003

13886 14227 28113 1151 16763 17914 3646 96 104 666 15026 15892 852 127080

10.57 4.60 7.55 -16.16 35.41 32.10 16.21 443.75 -6.73 -23.12 10.14 11.25 48.83 13.17

131072 123614 254686 12287 179204 191491 28851 1982 1365 3773 124888 132008 8045 1139425

204 41 6 47 52 9

250 22 3 25 27 11

-18.40 86.36 100.00 88.00 92.59 -18.18

1651 216 47 263 393 43

-50.00

LCV-Light Commercial Vehicles up to 3.5t ** BMW 304 BMW Mini Total China Great Wall 139 Chrysler 58 Chrysler Dodge 63 JEEP 86 Total 207 DAF DAF Mercedes 11267 Daimler Fiat Alfa Romeo 16 Fiat 13195 Iveco 3798 Lancia 2 Total 17011 Ford Ford 18237 39 Volvo Other Total 18276 GM Chevrolet 46 8958 Opel SAAB 0 Other 21 Total 9025 Jaguar Land Rover Jaguar 1457 Land Rover Japan Daihatsu 4 Honda 6 Mazda 278 Mitsubishi 2516 Nissan 4216 Subaru 5 Suzuki 82 Other 1257 Total 8364 Korea Daewoo 446 Hyundai KIA 101 Other 46 Total 593 Porsche Porsche Citroen 15354 PSA Peugeot 14881 Total 30235 Renault Dacia 965 22699 Renault Total 23664 Toyota Toyota 4237 Audi 522 Volkswagen AG Seat 97 Skoda 512 Volkswagen 16549 Total 17680 Other 1268 Total 143812 LBC- Light Buses & Coaches upto 3.5 tn Mercedes Daimler Fiat Fiat Iveco Total Ford Ford Opel GM Chevrolet Total Japan Nissan Toyota Total Korea Hyundai

5.00 45.96

16 - 31 December 2010

GROUP

PSA

Renault Volkswagen AG

Other

EUROPEAN SALES

BRAND 2010 SEPTEMBER 2009 SEPTEMBER Kia Other Total Citroen 2 3 41 Peugeot Total 5 Renault 87 92 Audi 149 Seat Skoda Volkswagen 55 Total Dodge 20 230 Other Total 574 734

Total Light Commercial Vehicles up to 3.5t (LCV+LBC) BMW BMW 304 Mini Total China Great Wall 139 Chrysler 58 Chrysler Dodge 63 JEEP 86 Total 207 DAF DAF Daimler Mercedes 11471 Fiat Alfa Romeo 16 Fiat 13236 Iveco 3804 Lancia 2 Total 17058 Ford Ford 18289 Volvo 39 Other Total 18328 GM Chevrolet 49 Opel 8964 SAAB 0 Other 21 Total 9034 Jaguar Land Rover Jaguar Land Rover 1457 Japan Daihatsu 4 Honda 6 Mazda 278 Mitsubishi 2516 Nissan 4217 Subaru 5 Suzuki 82 Other 1257 Total 8365 Korea Daewoo 446 Hyundai KIA 101 Other 46 Total 593 Porsche Porsche PSA Citroen 15356 Peugeot 14884 Total 30240 Renault Dacia 965 Renault 22786 Total 23751 Toyota Toyota 4237 Audi 522 Volkswagen AG Seat 97 Skoda 512 Volkswagen 16698 Total 17829 Other 1288 Total 144386 CV-Commercial Vehicles (trucks) over 3.5t ** China Other Chrysler Other 0 DAF DAF 3457 Daimler Mercedes 6619 Fiat Fiat 284 Iveco 3215 Total 3499 Ford Ford 90 GM Chevrolet 1 Opel 0 Other 0 Total 1 Japan Mitsubishi 426 Nissan 60 Other 270 Total 760 Korea Daewoo MAN MAN 4319 PSA Citroen 15 Peugeot 49 Total 64 Renault Renault 2341 34 Other Total 2375 Scania Scania 2637 Toyota Toyota 31 Volkswagen AG Volkswagen 215 Volvo Trucks Volvo 3005 Other 918 Total 27990 BC-Buses & Coaches over 3.5t DAF DAF Daimler Mercedes Others Total Fiat Fiat Iveco Total Ford Ford

Auto Monitor

51 816 114 930 22 572 594 509

% CHANGE

YEAR TILL DATE 2010

GROUP GM Japan

-92.68 -5.43

25 22 47 663 936

-100.00

PSA

-91.30 -21.80

1123 5149

216.67

927

107 86 61 106 253

29.91 -32.56 3.28 -18.87 -18.18

1006 459 615 843 1917

11437 13 14246 3183 1 17443 16890 38 0 16928 20 6154 0 20 6194

0.30 23.08 -7.09 19.51 100.00 -2.21 8.28 2.63

93489 122 136796 35101 26 172045 124321 301

8.27 145.00 45.66

124622 264 58022 5 114 58405

773 0 24 472 2289 3218 4 102 908 7017

88.49 -75.00 -41.10 9.92 31.04 25.00 -19.61 38.44 19.21

6190 6 46 1933 17699 33195 84 672 9202 62837

551 109 62 722

-19.06 -7.34 -25.81 -17.87

3697 921 387 5005

13888 14266 28154 1151 16855 18006 3647 96 104 667 15080 15947 1082 127814

10.57 4.33 7.41 -16.16 35.19 31.91 16.18 443.75 -6.73 -23.24 10.73 11.80 19.04 12.97

131097 123636 254733 12287 179867 192154 28865 1983 1371 3779 125811 132944 9168 1144574

-100.00 -10.42 22.64 48.69 17.55 19.58 50.00 -75.00

5.00 45.85

MAN

1 4 3859 5397 191 2735 2926 60 4 0 1 5 284 98 76 458

-100.00 -80.00 50.00 -38.78 255.26 65.94

8 23352 43340 2411 23523 25934 572 20 8 7 35 2184 642 1417 4256

3540 13 31 44 1828 5 1833 2013 20 141 2183 849 23333

22.01 15.38 58.06 45.45 28.06 580.00 29.57 31.00 55.00 52.48 37.65 8.13 19.96

26564 97 280 377 15977 125 16102 17100 262 1419 18486 5624 183433

43 818 97 915 23 668 691 483

18.60 -0.24 17.53 1.64 -4.35 -14.37 -14.04 5.38

260 6016 1052 7068 181 4085 4266 2606

Renault Scania Volkswagen Volvo Trucks Others Total

BRAND 2010 SEPTEMBER 2009 SEPTEMBER Chevrolet Opel 3 7 Nissan Mitsubishi Toyota Others 7 2 Total MAN 286 450 29 18 Others Total 315 468 Citroen 2 5 16 7 Peugeot Total 18 12 Renault 65 81 Scania 227 198 Volkswagen 35 50 Volvo 160 179 746 554 3660 3684

Total Commercial Vehicles (Trucks) & (Buses) over 3.5t Other China Chrysler Other 0 DAF DAF 3508 Daimler Mercedes 7435 Others 114 Total 7549 Fiat Fiat 306 Iveco 3787 Total 4093 Ford Ford 599 GM Chevrolet 1 Opel 3 Others 0 Total 4 Japan Mitsubishi 426 60 Nissan Others 277 Total 767 Korea Daewoo Hyundai Total MAN MAN 4605 29 Others Total 4634 PSA Citroen 17 65 Peugeot Total 82 Renault Renault 2406 Others 34 Total 2440 Scania Scania 2864 Toyota Toyota 31 Volkswagen AG Volkswagen 250 Volvo Trucks Volvo 3165 Others 1664 Total 31650

% CHANGE

YEAR TILL DATE 2010

-57.14

250.00

-36.44 61.11 -32.69 -60.00 128.57 50.00 -19.75 14.65 -30.00 -10.61 34.66 -0.65

1968 273 2241 18 56 74 818 1490 233 1884 4551 25554

1 4 3902 6215 97 6312 214 3403 3617 543 4 7 1 12 284 99 77 460

-100.00 -10.10 19.63 17.53 19.60 42.99 11.28 13.16 10.31 -75.00 -57.14 -100.00 -66.67 50.00 -39.39 259.74 66.74

8 23612 49356 1052 50408 2592 27608 30200 3178 21 33 7 61 2184 647 1449 4293

3990 18 4008 18 38 56 1909 5 1914 2211 21 191 2362 1403 27017

15.41 61.11 15.62 -5.56 71.05 46.43 26.03 580.00 27.48 29.53 47.62 30.89 34.00 18.60 17.15

28532 273 28805 115 336 451 16795 125 16920 18590 262 1652 20370 10175 208987

HCV-Heavy Commercial Vehicles (trucks) over 16t ** Other China DAF DAF 2833 Daimler Mercedes 4000 Fiat Iveco 1373 Ford Ford GM Chevrolet Japan Other 26 MAN MAN 3335 Renault Renault 1917 Other 4 Total 1921 Scania Scania 2622 Volvo Trucks Volvo 2854 Others 509 Total 19473

1 3219 3489 1359

-11.99 14.65 1.03

5 19762 25163 10635

10 2531 1412 5 1417 2006 2020 438 16490

160.00 31.77 35.76 -20.00 35.57 30.71 41.29 16.21 18.09

112 19509 12008 26 12034 16993 17197 2541 123947

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

16 467 97 564 376 427 13 440 29 198 179 258 2060

0.00 6.42 16.49 8.16 -14.36 -43.33 123.08 -38.41 3.45 14.14 -10.61 39.92 -3.11

110 3750 1051 4801 2583 1737 273 2010 516 1482 1884 2697 16083

-11.93 13.68 16.49 13.74 -2.31

19872 28913 1051 29964 13218

160.00

112

20.93 123.08 21.37 35.11 -20.00 34.92 29.22 37.06 25.00 15.74

21246 273 21519 12524 26 12550 18475 19081 5238 140030

16 497 113 610 322 242 29 271 30 226 160 361 1996

Total Heavy Commercial Vehicles (Trucks & Buses) over 16t China Other 1 DAF DAF 2849 3235 Daimler Mercedes 4497 3956 Other 113 97 Total 4610 4053 Fiat Iveco 1695 1735 Chevrolet GM Japan Others 26 10 Total MAN MAN 3577 2958 Others 29 13 Total 3606 2971 Renault Renault 1947 1441 Other 4 5 Total 1951 1446 Scania Scania 2848 2204 Volvo Trucks Volvo 3014 2199 Others 870 696 Total 21469 18550

*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

16 - 31 December 2010

Getting Personal

In Person

With Diya Garware Ibanez, Managing Director, Garware Motors

Hailing from a business family, Diya Garware Ibanez had the business connection in her genes. Born on 25 September, 1970 in India to Ramesh B Garware and Sunita Garware, Diya was raised in Australia. She is the granddaughter of Padma Bhusan late Dr BD Garware, the founder and the principal entrepreneur behind the ‘House of Garware’. A graduate from the Cornell University, USA, Diya started her career as an entrepreneur and is the founder of Garware Elastomerics and Garware Bestretch, one of the world’s leading manufacturers and exporters of latex (natural rubber) and latex free (synthetic poly isoprene) elastic rubber tapes and medical disposable products. Sales & Marketing are Diya’s forte and she has set up the US operations as well as the supply chain system in Central America and the Caribbean all by herself. She has grown the company at a CAGR of nearly 20 percent in the last four years, doubling the company’s sales turnover last year. With these leadership qualities it comes as no surprise that Diya has been awarded with the ‘Udyog Ratna’ award by the Institute of Economic Studies. Diya is married to Juan Carlos Ibanez, who manages the Indian operations of an American multinational corporation. She is a doting and hands-on mother of two adorable sons. She brings in the same exuberance and positivity at home as in office. She is at home with the Spanish language as she is with English. Besides family and work she has great passion for cooking and Latin music. Diya has now set her sights on diversifying. This has resulted in formation of a new company under her leadership – Garware Motors – and is actively pursuing various ideas to grow this company at a scorching pace in the coming years.

If not in the auto industry, where would you be? In renewable energy What car do you drive? What do you dream of driving? I drive a BMW and dream of driving the Terrafugia ‘Transition’ Your most recent indulgence… Being able to gift a Cedar Wood outdoor play set to 300 children and seeing their smiles and appreciation What are you currently reading? ‘Negotiating with Giants’ by Peter Johnston What is Mrs Garware doing, when not talking auto? Dreaming about ‘what next’ Outdoor activity you would miss office for… Jumping on the trampoline with my sons Where did you go for your last holiday? Landaa Giraavaru in the Maldives You get angry when… People demonstrate ‘irresponsible’ behaviour What is the one thing you would like to change about you? Be less of a ‘perfectionist’ Best thing to have happened to you… Meeting my Colombian husband, Juan Carlos

An experience I won’t forget…

Illustration: Sachin Pandit

Believing in being able to achieve the impossible is my motto. The experience that moulded this motto for me was a business we started in 1995. We bought a second-hand plant and neither received the technology, nor the customer list, as we were promised. Purely through believing in being able to achieve success and inculcating those beliefs into others, we are today the largest in the world in our field.

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