Auto Monitor - 16-31 October 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. 19

16-31 October 2010

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

INTERVIEW ‘OPEN TO PARTNERING WITH NEW PLAYERS IN INDIA FOR INTRODUCING NEWER TECHNOLOGIES’ Saju Mookken, Managing Director, Magneti Marelli India

` 50/-

AUTONOMICS ROADWAY PROJECTS TO BOOST AUTOMOBILE Pg 14 DEMAND

Pg 08

Magneti Marelli to introduce AMT for light motor vehicles

NEWS IN BRIEF

Abhishek Parekh New Delhi

Hero Honda launches Passion CWG edition World’s largest two-wheeler manufacturer and a key partner of the Commonwealth Games Delhi 2010, Hero Honda Motors (HHML) recently rolled-out the ‘Passion Pro Commonwealth Games’ limited edition. The new bike, priced at `46,300 (ex-showroom Delhi), has an all-white body with sporty looks, new dual-tone blue and green graphics inspired by the colours of the Games, a company statement said. It also comes with the special XIX Commonwealth Games Delhi 2010 insignia on its side cover.

Kolkata gets first Apollo Super Zone Apollo Super Zone was inaugurated recently in Kolkata by Chairman, Apollo Tyres, Onkar Kanwar. This centre, Apollo Tyres’ 16th overall, is the largest and follows a retail format for selling tyres by ensuring visual appeal, comfort and convenience to customers, and providing an opportunity to learn about the product’s applications and performance before making the fi nal purchase.

DATA MONITOR Domestic Sales Sector

Apr-Sep 09

Apr-Sep 10

Change

885,221

1,176,518

32.91%

220,945

312,841

41.59%

207,811

249,095

19.87%

4,470,434

5,626,306

25.86%

TOTAL

5,784,411

7,364,760

27.32%

Exports Sector

Apr-Sep 09

Apr-Sep 10

Change

211,645

214,774

1.48%

17,468

32,142

84.01%

66,337

132,669

99.99%

512,812

781,173

52.33%

TOTAL

808,262

1,160,758

43.61%

* Source: SIAM/ ** all sub segments considered

64 Pages

agneti Marelli India, the wholly-owned Indian subsidiary of leading Italian supplier auto components and systems, Magneti Marelli, is in advanced stage of discussion with passenger cars and utility vehicle makers in India for introducing the Automated Ma nua l Tra nsmission (AMT) technology. The company, which is part of the Fiat Group, had fi rst displayed this technology at this year’s Auto Expo in New Delhi in the Fiat Linea. ‘We are evaluating the strategy for introduction. It could be introduced through one of the existing joint ventures or a new JV or through Magneti Marelli’s wholly-owned subsidiary in India. But we certainly feel it’s the right time to provide the technology to OEMs in India as it offers a very compelling value proposition to end customers,’ said Managing Director, Magneti Marelli India, Saju Mookken. The major benefit that an Automated Manual Transmission

could provide, depending on the driving cycle, is up to five to ten percent improvement in fuel economy as compared to a manual transmission. Additionally, the cost to customer would be lower as compared to a fully automatic transmission.

But more importantly, an AMT can be easily adapted to existing transmission architecture in case of most manufacturers. That offers a good possibility for wide scale adoption as compared to a fully automatic transmission. It may be noted that global suppliers like Eaton and WABCO

way as the driver would: it opens and closes the clutch, engages and disengages the gears and, when necessary, it also controls the choice of transmission (automatic or sequential mode for changing gear). These three control movements are ensured by three specific hydraulic actuators, controlled by hydraulic electro-valves. The heart and intelligence of the gear control system is the A prototype joystick of Magneti Marelli’s TCU (Transmission Automated Manual Transmission C ont r o l Un i t) . Taking into account the driver’s transmission, a techrequirements and the operatnology derived from ing conditions of the vehicle, it Formula One. It commanages the gear changes by conbines comfort of use trolling the clutch, the gears and with a reduction in fuel the engine. consumption, and can be mated When the gear changes, the with any transmission. AMT is Engine Control system becomes based on an electronic control a torque generator interlocked unit and a hydraulic system that with the TCU and the interface supervise the use of the clutch between the AMT device and the and the gear shifting, allowing Engine Control system. the driver to change gear without The latest generation of AMT using the clutch, either sequen‘mechatronic’ combines the tially or fully automatically. electronic control part and the Magneti Marelli’s AMT syshydraulic actuation part of the tem operates on the manual transmission of a car in the same Contd. on P40 have already introduced AMTs for medium and heavy commercial vehicle (M&HCV) segment. Magneti Marelli’s ‘Freechoice’ is an electro-hydraulic mechanism for automating manual

Mitsubishi eyes EV market in India; to set up car unit in Chennai Our Bureau Chennai

n line with its target of expanding its presence in India, HM-Mitsubishi Motors is revising its product strategy for the Indian market by revamping its existing models and planning a slew of new product launches in the future. The company is exploring options of bringing its electric compact car i-MiEV into India during FY15. The i-MIEV (Mitsubishi innovative Electric Vehicle) is currently marketed in Japan and the auto major is mulling over introducing it in Europe next. ‘Globally, the electric vehicle market is well established but in

STOP PRESS

Piaggio apé gets mini sibling

India, the infrastructure including battery recharging outlets have yet to be developed. I-MiEV

costs around $45,000 globally and Mitsubishi markets around 8,000

Contd. on P40

iaggio Vehicles (PV PL) unveiled apé mini, a half tonne cargo four-wheeler uniformly priced at `173,600 (ex-showroom, India). The apé mini is a strategic initiative from PVPL to further expand its share of the half tonne market, where it’s already an undisputed leader with its apé three-wheeler. The apé mini offers the best mileage of 29 kmpl in its class. It has the largest cargo deck in the category, enabling optimum load capability. PVPL is offering a 15-month warranty and fi ve free services.

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CONTENTS CORPORATE M&M’s facility in South India to cater to Mahindra, Swaraj brands

Nissan Micra’s diesel avatar to be launched before Christmas this year

Atul Industries gets India mandate for marketing WD40

Mahindra’s FES is setting up a facility to manufacture around 100,000 tractors to meet the requirements of Mahindra and Swaraj branded tractors in 35 hp and above segment

Nissan Motor India would be launching the diesel version of its compact offering, Nissan Micra, based on the V-platform, before Christmas this year

Atul Industries has entered into an agreement with WD40 Company to represent and service the existing dealership network for epoxy adhesive Lappox and rubber based adhesive Polygrip

Sundram Fasteners’ new plant for sprockets to go on stream this year

Sundram Fasteners’ new facility for manufacturing sprockets - used in gear boxes of passenger cars – is scheduled to go on stream by the year-end

IJL bags mandate to supply lamps to Toyota, Honda compact cars

India Japan Lighting will commence supplies of headlamps and fog lamps for Toyota’s compact car Etios from December this year

South India continues to be favoured destination for auto makers

South India is gearing up to welcome new OEMs and component makers with ten projects involving investments in excess of `350 crore under evaluation by the State Government

Synergies with VECV, mid-priced products for Volvo India

Ports in South India eye growing auto exports; expand capacities

GLOBAL WATCH NHTSA may require 62 mpg by 2025

Hyundai Sonata, BMW 5 Series top new US safety tests

Nissan uses tiny island as test site

Honda unveils Fit hybrid, gets pre-orders of 10,000 units

The Barack Obama administration could impose a fleet-wide requirement of 62 miles per gallon for cars and light trucks by 2025

BMW 5 Series and Hyundai Sonata topped the new United States Government crash tests for safety, conducted by the National Highway Traffic Safety Administration

In a joint project with Kagoshima Prefecture, Nissan has agreed to supply electric cars and identify sites for charging outlets on the island of Yakushima in Southern Japan

Honda plans to sell the hybrid version of its Fit subcompact for ¥1.59 million ($19,310) in Japan, aiming for around 5,600 units a month

VECV Powertrain is scheduled to manufacture medium duty engine platform comprising 5 litre and 8 litre engines from 215 up to 350 hp, based on the Volvo Group’s new PSS technology

Chennai Port has untertaken the second phase of expansion involving development of multipurpose general cargo terminal by December this year mainly for auto and project cargo

THE OTHER SIDE

INTERVIEW 08

Rajesh Sethi, Chief Executive Officer, Mondial Assistance ‘No OEM inertia against acceptance of aftermarket diagnostic solutions’ 27 President, Bosch Aftermarket Division, Robert Hanser elaborates on key challenges for the German giant’s drive in the emerging markets like India

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Auto Monitor

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

Heading Mondial’s operations in India since 2008, Sethi has over 18 years of experience in wide range of industries like financial services, automotive, engineering, insurance and retail

Auto Monitor

16 - 31 October 2010

CORPORATE

M&M to establish facility in South India for Mahindra, Swaraj branded tractors Abhishek Parekh Mumbai

ahindra & Mahindra’s Fa r m E qu ipment Sector (FES) is looking to establish a presence in Southern India with a facility to manufacture around 100,000 units. The facility would manufacture tractors to meet the requirement of Mahindra and Swaraj branded tractors in 35 hp and above segment. ‘A facility in Southern part of the country would help consolidate our position in the market and retain our marketshare in the region,’ said Senior Vice President, Marketing & AppliTrac, Farm Equipment Sector, Mahindra & Mahindra, Sanjeev Goyle. Goyle added that the FES is currently working on upgradation of the entire tractor line-up under Mahindra and Swaraj brands and there is likely to be product rationalisation going forward. For instance, Swaraj would not be entering below 20 hp tractor segment, where M&M would establish presence and leadership position in the coming months. Though he refused to elaborate the quantum of investments in the facility planned in South India, he added that any facility of such size and capacity would entail investments upwards of `200 crore or so. The FES’ current capacity is around 200,000 units spread across four facilities in Mumbai, Nagpur, Rudrapur and Jaipur in

has been catering to the growing demand of the sub-20 hp tractor for M&M. ‘Around 70 percent of the buyers of Yuvraj are fi rst time buyers and we hope to retain and upgrade them to higher hp tractors in the coming years. The buyer profi le of ‘Yuvraj’ confi rms our belief that there is a significant demand for low hp tractors, which none of the organised national Sanjeev Goyle, Senior Vice President, Marketing & players have tapped AppliTrac, Farm Equipment Sector, M&M so far,’ said Goyle. He Northern and Western parts of added that after meeting the curthe country. rent demand, the tractor would be launched nationwide by early next year. Increased Demand M&M’s FES, which sells Mahindra as well as Swaraj Growth Contributors branded tractors, has grown in The factors that have conline with overall tractor industributed to the growth of the try. Tractor industry grew by industry include adequate around 30 percent last year and rainfall, increase in the the overall industry volumes m i n i mu m suppor t have grown by around 19 percent price (MSP) given till September this fiscal. Tractor to farmers and betindustry is expected to grow by ter infrastructure in around 15 percent this fiscal. rural India leading to Mahindra FES added an entry more non-agricultural level tractor ‘Yuvraj’, a 15 hp tracapplications for tractor priced at `178,000 making it tors. These factors have ideal for smaller land holding and continued to contribute other applications. This entry towards higher tractor level tractor is manufactured demand over the last couin the company’s facility near ple of years. There has been a Rajkot in Gujarat with a capacdistinct increase in applications ity of around 20,000 tractors per like transportation of people and annum. The facility was kicked goods using a tractor in semi off around 10 months back and urban and rural areas.

Moreover, growing presence of banks and NBFCs in the rural areas has increased access of credit to farmers across the board. Industry players estimate that around `75,000 crore incremental amount has been directed at agricultural related credit this fi scal. Higher crop procurement price puts additional income in the hands of the farmers and leads to increase in discretionary and non-discretionary spending, including capital expenditure on farm equipments and other tools of mechanisation. The FES has been working on

enhancing co-operation with group entities and divisions, including Swaraj and two tractor manufacturing entities acquired in China. The co-operation could entail working on joint development, platform sharing and other means of operational synergies. Additionally, the Chinese units of M&M are playing a key role in identifying quality supplier base for tractors in China. The FES is considering opportunities for setting up a reliable supplier base for sourcing tractor components from China given the components shortages across the automotive sector.

Auto Monitor

16 - 31 October 2010

INTERVIEW

‘Open to partnering with new players in India for introducing newer technologies’ Magneti Marelli, one of the leading auto components and systems suppliers globally, has already established a significant presence in India through a spate of joint ventures over the last decade. The operational businesses of the group are divided into six broad business verticals including automotive lighting, electronic systems, powertrain, suspension systems, exhaust systems, plastics components and modules in addition to aftermarket parts & services as well as motorsport. In an exclusive chat with Auto Monitor, Managing Director, Magneti Marelli India, Saju Mookken spoke on newer technologies to be introduced in the Indian market and importance of India for Magneti’s future growth. Abhishek Parekh

What is your outlook on the vehicle sales in India? India is one of the few markets for Magneti Marelli that is expected to grow consistently in the medium to long-term. Even if the current growth rate tapers off a bit, Indian market could easily reach around four million units of passenger cars and light commercial vehicle segment by FY15. The current expansion plans and manufacturing capacity will ensure that we reach those fi gures. But from four

Saju Mooken, Managing Director, Magneti Marelli India

million units to fi ve or 5.5 million units will require other external factors like sustainable economic growth rate and rising prosperity among other factors. Our business plans are geared to support these expansion plans or volumes. Moreover, with transnational manufacturers like Volkswagen entering Indian market and drawing up plans for manufacturing cars in India for local and global requirements, it would benefit suppliers like us who have global reach and resources. Thus, we are fully prepared to meet our customers’ requirements for all the product groups that we are currently operating in India. How critical is it for a global auto component supplier to have a local manufacturing base in India? It is critical to have a local manufacturing set-up, especially if the customer also has a local manufacturing base and local duty structures are involved during negotiations. Moreover, it depends from product group to product group based on volume requirements. The localisation of components is a critical factor for any OEM and supplier, who can help in that effort. They’ll always have an advantage as compared to the one who cannot offer such benefit. What is your strategy for aftermarket segment in India? We have a

major presence in the aftermarket segment in Europe and Latin America and support close to 5,000 garages in addition to independent distributors of spare parts. We believe we can add value and occupy a significant position in the aftermarket segment in India. We have entered into an arrangement with Carnation Auto to service the premium end of the passenger car segment in India. We are now evaluating the strategy of entering the mass market segment and

have a robust two-wheeler electronics business in India and are looking to make India the hub for development, research and production of two-wheeler instrument clusters and body control units.

Which are the newer technologies being developed or launched in the Indian market? We are evaluating several interesting technologies for the Indian market, including Automated Manual Transmissions, products in informatics and telematics space. Some of the technologies that we Our guiding principles, are evaluating introducwhile going for a JV partner, ing in India may even be continue to be process required by manufacturers here for vehicles to be knowhow, managerial and exported to Europe and technical bandwidth and other developed markets. customer relationships Some of these products or technologies can brought to the table be launched within existing joint ventures, while other distribution channels. We some may be marketed by the are evaluating several distribuwholly-owned subsidiary of tion models and it is very early to Magneti Marelli in India. The comment on which model is most decision on the launch vehiappropriate at this stage. cles would be entirely guided by business scenarios and customer requirements. Thus, there is What are the plans for an opportunity for our existing JV exports across product segments partners as well as newer players that you are currently present to partner us depending on the in? business scenario and value that We have aggressive plans we can bring to the table. for exports wherever it suits Our guiding principle, while the business needs, customgoing for a JV partner, continue ers’ expectations and logistical to be process knowhow, manaflow. In some of the products, the gerial and technical bandwidth exports could constitute up to 25 already available and customer percent of the total production, relationships that are brought to while in other products it may the table. be much lesser. For instance, we

EDITORIAL Growth in India; EV optimism in Paris T

he Indian automotive industry continues to march ahead with the same vigour we’ve seen over the last several months. So much so, that the apex industry body – Society of Indian Automobile Manufacturers (SIAM) – who a few months back had made its fi rst segment-specific projections, had to go back on its figures, review them, and offer new insights on the growth the market is likely to see through the remaining half year of FY11. And why not? Data for September indicates passenger car sales surged nearly 30 percent y-o-y to 169,082 units – a third straight month of record sales. SIAM has now doubled its projections for passenger car sales, forecasting a 23 percent growth in the current fiscal from the earlier 12 percent. The projections however come with studied caution, especially considering the gradual hike in interest rates by Indian financial institutions. While there is little doubt about Indians deferring vehicle purchases, any further hike in policy rates might significantly affect the industry. New launches since the beginning of 2010 have propelled sales significantly, and with many launches scheduled for the following quarters of this year, sales are unlikely to be impacted majorly. Hike in borrowing rates notwithstanding, India seems to have the basic ingredients right – there is a good GDP growth, consumer confidence is on a high, there is a larger thrust on

rural employment and infrastructure development too seems to be progressing well. Moreover, there is enough money at disposal for consumers to spend. These are reasons that have helped India become the second largest market in passenger cars with 32 percent marketshare, while it is leading in the CV segment with a marketshare of 59 percent, SIAM President Pawan Goenka informed the media recently. To keep the momentum going, automakers would need to ensure it handles their capacities better. Meanwhile, the auto show in Paris this year revealed an interesting trend – after years of showcasing eco concepts, carmakers launched production versions of hybrid and electric cars, demonstrating that the difficult years for the global car market have been left behind, and creating a sustainable environment is on everyone’s landscape. Like our resident European expert, Mark Carbery says in his article on the show (read the report on pages 44-45) – ‘with over 100 vehicle debuts, including around 70 new production models, it was difficult to find any evidence of an industry in crisis.’ Renault, Nissan, Peugeot, Citroen, Mitsubishi, Volkswagen, Ford, and Volvo – almost every OEM present had some sort of electric vehicle to showcase. In addition, Japanese majors – Toyota, Lexus and Honda, and South Korean Kia had new production

hybrids to showcase. Most notably, Mark reports, there were electric scooters from Smart and Mini, which would not only fit nicely with their chic brands but offer their parent companies significant reductions in average CO2 outputs to help meet the EU’s 95g/km target for 2020. What matters most though is the global industry’s collective vision of offering environmentally-friendly and sustainable emission-free vehicles. There is a defi nite need for Indian carmakers to have the same perspective. M&M, with its Reva acquisition, has made its intent clear and we expect to see some movement in that direction sooner. Interestingly, market leaders Maruti Suzuki India has no immediate plans to venture into electric mobility, even as it has demonstrated its hybrid technology at CWG 2010 in New Delhi. But the way EVs are being accepted globally, no carmaker can afford to stay away from it for long.

Deepangshu Dev Sarmah deepangshud.sarmah@infomedia18.in

IMAGE of the fortnight

FORTNIGHT’S QUOTES ‘Small car, specifically for India, is one of the areas that we are discussing with Suzuki...... This decision for India will probably be taken by spring 2011’ Martin Winterkorn, Chairman, Volkswagen

‘The task of building the future at Bajaj Auto starts now. We have been working on fixing the past. Our brand strategy is working like a charm’

‘There is no risk exposure in launching BMW bikes in India. It would be done with a long-term perspective and help the BMW brand’

Rajiv Bajaj, Managing Director, Bajaj Auto

Andreas Schaaf , President, BMW India

‘I would have decided to produce the Megacity Vehicle even if, contrary to our expectations, it doesn’t make money in the first generation’

‘Today, a decisive chapter in our history is beginning with the presentation of our range of EVs, commercialised at the price of the IC equivalents’

Norbert Reithofer, Chief Executive Officer, BMW

Carlos Ghosn, CEO and President, Renault and Nissan

Auto Monitor Editorial Team Editor: Deepangshu Dev Sarmah Features Editor: Shobha Mathur Principal Correspondents: Abhishek Parekh Archit Revandkar Contributing Editors: Sirish Chandran Bertrand D’Souza

Design & Photography Group Photo Editor & Creative Head: Shiresh R Karrale 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)

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

Maruti’s green brigade at CWG 2010 Market leader Maruti Suzuki India (MSIL) developed and delivered 14 future technology vehicles – 10 SX4 hybrid cars and four ‘Eeco Charge’ vehicles – for the use at the recently concluded Commonwealth Games in New Delhi. The fi rst lot of two SX4 hybrids and one ‘Eeco Charge’ was handed over to Minister of Transport for NCT Delhi, Arvinder Singh Lovely by MD and CEO, MSIL, Shinzo Nakanishi. The vehicles were developed as a part of the demonstration fleet, in line with the ambitious National Hybrid Propulsion Programme (NHPP) and the Ministry of New & Renewable Energy Sources (MNRE)’s High Energy Density Battery Development Programme, a company statement said. The SX4 hybrid is a full parallel hybrid with automated manual transmission (AMT) on a sedan platform, while the ‘Eeco Charge’ is a zero-emission, pure electric vehicle developed on a MPV platform. Through this exercise, MSIL is keen to expand its learnings on green technologies that put minimal stress on non-renewable energy. A team of 25 Maruti Suzuki engineers worked on this project with global hybrid technology and component suppliers.

Auto Monitor

16 - 31 October 2010

CORPORATE

Nissan Micra’s diesel avatar to be launched before Christmas this year Shobha Mathur Chennai

apanese carmaker Nissan Motor India (NMIPL) would be launching the diesel version of its compact offering, Nissan Micra – the fi rst of its V-platform car models – before Christmas this year. Manufactured at the Renault Nissan plant at Oragadam, near Chennai, the diesel version would be competitively priced against competing models in the B+ segment, like the Hyundai i20, Maruti Suzuki Swift, Skoda Fabia and Chevrolet Beat to shore up the compact car’s marketability, according to the company spokesperson. In the domestic market, the carmaker holds an order book of 4,500 bookings for the petrol version of the Nissan Micra and its variants, out of which the com-

pany has sold 3,293 units till 30 September, within a period of 75 days from its launch in July this year. Out of total sales, 65 percent sales were of the premium model, Micra XV, followed by the base version Micra XE and Micra XL. The delivery period for the Nissan Micra stands at around two months but the company

hopes to bring it down further in the coming weeks. Earlier this month, Nissan flagged off its fi rst shipment of 3,866 ‘Made in India’ Micra cars to 10 European countries from the Ennore Port. Sales of these country specific cars would begin in a phased manner from November onwards.

‘Shipment takes around 25 days to reach the European port,’ explained the company spokesperson. ‘The product specifications and variants are in line with country specific requirements. The export model of the Nissan Micra, built on a new versatile V-platform, has been produced to comply with different safety regulations and environmental rules applicable in different developed markets. The global compact Micra was designed and tested in Japan and fi ne-tuned to meet the varying preferences of customers worldwide,’ he added. In the long-term, the Micra brand would be exported to over 100 countries, including Europe, Middle East and Africa with 110,000 units targeted for exports during FY11. This would be in line with Nissan’s global growth strategy, of mak-

ing Chennai the strategic hub for both domestic sales and exports for the company. In April this year, the company had successfully tested out the fi rst trial consignment of six cars to Barcelona from the Ennore Port in Chennai.

Changing Gears In August this year, NMIPL began its second shift operations at Oragadam to meet the growing demand for the Micra compact, bringing the total employee strength to 2,106 from 1,500 in the fi rst shift. This raised the average daily production of Micra cars to over 500 units, from 250 units earlier. This is expected to rise further in the near term, depending on market demand. The company has plans to line up nine models by 2012 of which five would be produced locally.

Contd. on P42

Atul Industries gets India mandate for marketing WD40 Archit Revandkar Mumbai

arlier in September this year, WD40 Company, the manufacturer of leading water displacement aerosol, WD40, announced a marketing tie-up with Gujarat-based chemicals group, Atul Industries. Under the new cooperation that comes on the back of WDFC’s two-decade long presence in India, Atul gets the exclusive rights to represent, service and grow the brand by retailing it through its existing dealership network for Lappox branded epoxy adhesive and rubber based adhesive Polygrip. Atul is 300 sales-points strong, with an access to 200 of existing WDFC dealers, who have agreed to retail WD40 despite the termination of company’s relationship with its former distributor. ‘We plan to increase the total

number of dealers representing WD40 to 700 before the end of this fi scal,’ said President, Polymer Group, Atul Industries, Rajesh Bhasin. In the fi rst three years, Atul intends to double industrial and aftermarket sales revenues of WD40, which stood at `100 million for the last fiscal. Specifically within the automotive and the aftermarket sector, Hyundai India and Ford India already uses the aerosol and India Yamaha Motor recommends it for several maintenance and repair jobs. Bhasin already has a 60-heads strong product and brand team devising marketing strategies to accommodate the diverse demographics of the country. ‘The marketing objectives and dealership network of both manufacturers is extremely complementary,’ said Regional Director – Asia, WDFC, Phillip

Tweed. Atul markets Polygrip to automotive OEMs and Lappox in the aftermarket, which gets additional dealers in the form of WDFC’s existing 200 touch points. While WD40 would get a renewed shot at India, under the cooperation, he said in an exclusive interaction with Auto Monitor.

Identifying Unique Apps One of the most significant cornerstones of this agreement is WDFC’s ability to leverage Atul’s R&D competencies in identifying unique Indian applications of WD40 and then creating awareness within relevant user groups. ‘Corrosion, attributable to humidity is a natural driver for maintenance aerosols in geographies like India,’ added Tweed. Other drivers include the massive infrastructural and industrial growth path of India, along with the automotive and aftermarket industry. ‘Mechanised farming and the construction boom also spell good news for us,’ he said adding that in the last fiscal, WDFC garnered over 50 percent of its sales revenues from markets outside the United States. Another aspect of the tie up involves local bottling, which Atul inherits from the previous arrangement WDFC had in India. At its Valsad and Vapi facilities, it would bottle the aerosol in 32, 64 and 170 gm cases, while it continues to import the fluid from San Diego, USA. ‘These are bottle sizes smaller than those in the US and are feasible in India due to the cost benefits over importing,’ said Tweed, adding that the original compound formula is still a secret and is manufactured only in the US, the UK and Australia. However, the big blast 400 ml can would be availed to Indian consumers through imports. Bhasin has a very pragmatic approach to the marketing of the product, already popular globally with DIY (do it yourself)

Contd. on P42

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 October 2010

AUTONOMICS

Roadway projects to boost automobile demand National Highways to be constructed, with a strong focus on road-widening, at a cost of `2,706 billion. The length of rural roads will increase from 213,510 km to 434,247 km, with Government investments rising threefold from `597 billion in FY10 to `1,727 billion in FY15 (Ref: Exhibit 1).

segments – commercial vehicles and twowheelers – as summarised below:

As the National Highway network will be strengthened, the mode of transportation for bulk commodities like steel products, cement and food grains will gradually shift from rail to road. The share of road in the transport of all commodities is hence likely to rise from 53 percent in FY10 to 58 percent in FY15. Demand for Medium and Heav y Commercial Vehicles (M&HCV), which will be used to transport these commodities over the National and State highways, will grow at 14-16 percent CAGR over FY10 to FY15, estimates CRISIL Research.

Rohit Garg Analyst, CRISIL Research

Road projects are likely to be executed faster in the next five years

With the Government paving the way for increased private investment in the road sector, CRISIL Research expects total investments in the road sector to more than double to `6,370 billion over FY11 to FY15 from `2,595 billion during the preceding fiveyear period. The investments are likely to benefit India’s automobile industry, which is poised to grow at 14-16 percent to `4,200 billion by FY15. Since better quality of roads will improve transporters’ turnaround time and fuel efficiency and increase their cash flow and profitability, demand for commercial vehicles will rise. Rural road projects will not only improve the quality and coverage of rural roads but also create opportunities for increasing non-farm income. Rural demand is therefore likely to drive the overall industry growth for two-wheelers.

Private players are likely to execute projects faster since the government has simplified procedures for timely execution of road projects – decentralising land acquisition, for instance. Also, since increased cash accruals and fresh equity infusions will ensure adequate access to funds, CRISIL Research expects no constraint in private investments. In the total private funding of `1,960 ii) Tippers billion for the roads sector, equity funding Faster execution of road projects will will amount to `390 billion and debt funds boost demand for tippers, a heavy vehicle `1,570 billion, estimates CRISIL Research. used in road construction which accountThis is because most road projects, being ed for 17 percent of M&HCV sales in FY10. capital-intensive and having long gesCRISIL Research estimates demand growth tation-periods, are constituted as SPVs for tippers to accelerate to 22-24 percent (special purpose vehicles) with a typical CAGR over FY10 to FY15 from nine percent debt-equity ratio of 4:1. during the previous five years. Over the past five years, internal accruals for a sample set of 15 large coniii) Light Commercial Vehicles struction companies grew by almost 40 The improvement in road infrastrucpercent, owing to a strong order book and ture will allow transporters to adopt the revenue growth from EPC (engineering, hub-and-spoke model of transportation procurement and construction) business. more quickly. In this transport model, We therefore expect private companies M&HCVs are used over long distances to be able to raise `230 bilExhibit 1 : Investments in Roads & Highways lion from internal accruals, almost 60 percent of the total equity requirement of `390 billion. With the Government’s emphasis on project execution, CRISIL Research expects the length of National Highway built per day to speed up from 6-8 km per day in FY10 to 12-14 km per day by FY15.

Road investments to more than double spurred by private investments With private funds complementing Government investments, CRISIL Research expects the total investments in India’s road sector to more than double to `6,370 billion over FY11 to FY15, from `2,595 billion during the preceding fiveyear period. Driven by a growing need to improve road quality and accelerate project execution, the Government is encouraging private sector participation in the road sector by making the policy framework more conducive to private investment. We therefore expect private investments in the road sector, which amounted to about `500 billion over FY06 to FY10, to grow almost fourfold to `1,960 billion over the next five years.

Investments in roads and highways More than 85 percent of the private investments will be used for developing National Highways and the balance for funding State roads. Government spending will continue to entirely fund rural roads. Over the next fi ve years, CRISIL Research expects 25,714 km of

With private and Government investments, CRISIL Research expects the total investments in India’s road sector to more than double to `6,370 billion over FY11 to FY15, from `2,595 billion during the preceding five-year period

A) COMMERCIAL VEHICLES: i) Medium and Heavy Commercial Vehicles

across the National and State Highways, whereas Light Commercial Vehicles (LCV) move goods between a regional transport hub and local areas served by the hub. Switching to this model will improve vehicle turnaround time and fuel efficiency, increasing profitability for transporters. With the likely improvement in the quality of rural roads, goods movement between local areas will shift from tractors and non-motorised vehicles to LCVs for last-mile transportation. CRISIL Research hence expects LCV demand to grow at 22-24 percent CAGR over FY10 and FY15.

B) Two-Wheelers Apart from improving rural infrastructure, the new rural road projects will create opportunities for increasing non-farm income in rural areas. The consequent growth in rural incomes would increase the number of households that can afford a two-wheeler from 92 million in FY10 to 132 million in FY15. Demand for two-wheelers in the currently under-penetrated rural areas will hence improve. Also, with urban demand growth likely to be moderate, two-wheeler manufacturers are exploring rural markets as a means to increase sales. We expect rural sales of two-wheelers to grow at 11-13 percent over FY10 to FY15; urban sales, in contrast, are likely to grow at 5-7 percent. Total sales of two-wheelers are thus likely to grow at 7-9 percent CAGR over the period.

Strengthened highway network will boost automobile sales The strengthening of the road network will boost demand for major automobile categories. CRISIL Research expects automobile sales revenues to grow at 14-16 percent to `4,200 billion by FY15. We explored the likely impacts on two vehicle

Source:CRISIL Research

PV sales growth to moderate in H2; H1 grew on low base CRISIL Research Team

he passenger veh icle industry saw robust growth in the fi rst half (April-September) of FY11, with car sales growing 34 percent y-o-y and that of utility vehicle rising 30 percent. Along with easing deliveries of the Tata Nano from its new plant at Sanand, Gujarat, sales volumes in H1FY11 were fuelled by new launches and entry of new players in volume-driven small and mid-size segments. Models launched in the last 12 months accounted for 10 per-

cent of sales in these segments in September. Also commercial utility vehicles saw sales surge as demand from tourist and corporate segments recovered. Due to the low base in the H1FY10

and healthy volumes, overall, the passenger vehicle industry grew 33 percent in the AprilSeptember period during FY11. CRISIL Research expects the industry to continue this growth H1FY10

Domestic sales

trend, albeit at a slower pace in the second half. Although sales volumes would continue to grow, the high base of last year would moderate growth during the period. Thus full-year

H2FY10

growth is estimated to be at 16-18 percent for cars and 13-14 percent for utility vehicles, leading to an overall growth of 15-17 percent for the passenger vehicles industry.

H1FY11

FY11

Units (in million)

Growth %

Units (in million)

Growth %

Units (in million)

Growth %

Units (in million)

Growth %

Cars

0.69

14.7%

0.84

35.0%

0.92

33.7%

1.77-1.80

16-18%

Utility Vehicles

0.19

9.2%

0.23

48.6%

0.25

30.2%

0.48 - 0.50

13-14%

Total Passenger Vehicles

0.88

13.5%

1.07

37.7%

1.17

32.9%

2.25 - 2.30

15-17%

Auto Monitor

16 - 31 October 2010

CORPORATE

Sundram Fasteners’ new plant for sprockets to go on stream by year-end Shobha Mathur Chennai

VS Group company, Sundram Fasteners (SFL), is on an expansion mode with its newest plant for manufacturing sprockets – used in gear boxes of passenger cars – scheduled to go on stream by the year-end. The company has invested `25 crore in the plant that has been set up at the Maraim alai Nagar Special Economic Zone, near Chennai. According to official sources, one contract has been entered into with a passenger carmaker for supplying the sprockets and more are expected to be entered into in due course of time. By the second year of production, the plant is expected to achieve a top line of `25-30 crore. SFL, meanwhile, has earmarked a capital expenditure of `150 crore primarily through internal accruals for expanding and diversifying various product lines during FY11. These include engine parts, fasteners and sintered powder metal components. Last year, SFL had spent `66.12 crore as capex on existing and new projects. At present, SFL has a production capacity of around 65,000 tonnes of fasteners at its Chennai, Madurai, Puducherry and Uttarakhand plants. Going forward, the company expects to diversify into other product varieties at these plants. A similar plan exists for its sintered powder metal component and shimless tappets plants at Hosur, the fi rst of which commenced production in April

2009 and the second going on stream during the fi rst quarter of 2010. The TVS Autolec plant in Chennai, which produces oil and water pumps, would also witness addition of new product lines in the near future. The shimless tappet plant at Hosur that has been installed for meeting tappet requirements of Maruti Suzuki’s KB series engines commenced supplies to the carmaker from March this year, according to Joint Managing Director, SFL, Arathi Krishnan. ‘The powder metal plant continues to export parts and currently shimless tappets are being produced as per the planned capacities,’ said Krishnan. With Maruti Suzuki going in for a facelift of all its vehicles, replacing all its normal engines with the high-powered KB engine, shimless tappets become a critical component. Estimates suggest around 12-16 tappets are used in each engine. SFL has a technical collaboration with Hitachi, Japan for making shimless tappets. The company had spent `30 crore and is now making additional investment based on requirements for capacity increase. Technical collaborations enable the component manufacturer to indigenise the product for the OEMs, to break the jinx of supply risk and beat currency volatility, according to official sources. Talking about the existing customers, Krishnan said, ‘the Maraimalai Nagar plant is producing hubs and shafts for the six-speed engine for General Motors, North America. We

are also producing gear boxes for Ingersoll Rand through our Autolec facility.’ All future tie-ups, Krishnan said, would be need based. ‘We don’t foresee any tie-ups at present other than the existing collaborations. Our collaborations have so far been effective since we have only entered into technology transfer tie-ups, which have a fi xed time period and a specific need.’

Better Business SFL posted a standalone turnover of `400 crore in Q1FY11 and is hoping to quadruple it to over `1,600 crore in the full fi scal compared to around `1,330 crore achieved during the last fi nancial year. Exports that stood at around `350 crore in FY10 are also slated to face an uptick to `400 crore in FY11 due to improved market conditions. However, SFL’s overseas subsidiaries suffered losses of `27.79 crore during FY10 against a net profit of `18.62 crore in the previous year. Their sales and other income also declined to `415.36 crore from `576.15 crore in the previous year.

Overseas Subsidiaries Suffer Our subsidiaries in Europe suffered due to the major meltdown in Europe during FY10, clarified Krishnan. ‘In FY11, there seems to be a pick-up in economic activity and projections are that the subsidiaries will cash breakeven,’ she added. Sundram Fasteners has five overseas subsidiaries – Sundram Fasteners (Zhejiang), China,

which makes high tensile fasteners and bearing housings; Peiner Umformtechnik, Germany, which produces a range of standard and special fasteners catering to the automotive, industrial and construction sectors; Cramlington Precision Forge, UK, that is involved in manufacturing precision forged components for use in heavy vehicles for on-highway and off-highway applications; Upasana Engineering that produces spokes and nipples, dies and tools, automotive components and cold extruded components; and, Sundram Bleistahl, which makes sintered valve guides at its plant in Hosur, Tamil Nadu. Official sources explained that SFL had no special strategy to revive the subsidiaries as they depended on market conditions. Moreover, they had not suffered cash losses but post depreciation losses, when the market was down by almost 60 percent. They pointed out that the UK and Chinese subsidiaries had already showed a turnaround and started generating profits, while the German subsidiary would take another year to revive. While not denying plans for setting up more overseas subsidiaries, Krishnan remarked that it would be based on opportunities provided for market access and possibilities of technology transfer and back-ending to India. Meanwhile, the main driver for upping the company’s profit margins further would be market revival. As the western economies improve, the subsidiaries will improve and beat losses, suggested Krishnan.

AK Minda Group acquires German Aksys

n yet another German acquisition by the Ashok Minda Group, the company recently announced the completion of acquisition of German composite moulding manufacturer, Aksys. This is the fourth major acquisition by the group in Germany, and the sixth acquisition in Europe. The new company has been named Minda Schenk Plastic Solutions GmbH, Plant Koengen. The asset deal gives the Indian supplier complete control of the German company that supplies to Daimler, VW Group, Renault, PSA and GM, among others. The acquisition amount, however, was not disclosed. Aksys has an annual turnover of €40 million (`240 crore). The acquisition will give the Indian major access to assets worth €20 million. Chairman, Ashok Minda Group, Ashok Minda said his company has borrowed to fi nance a fi fth of the total deal value, while the rest has been funded through internal accruals. The acquisition is part of the group’s strategy to reach a turnover of `2,500 crore for the year ending March 2011 and cross sales of `6,000 crore in another three years. ‘The acquisition will strengthen our product portfolio and we will leverage this to become a major supplier of interiors for cars, which will be one of our focus areas,’ Minda said.

Auto Monitor

CORPORATE

16 - 31 October 2010

FADA looking to establish global consortium of automobile dealers Our Bureau Mumbai

ederation of Automobile Dea lers A ssociat ions (FADA) is gearing up to take the lead in formation of an international auto retail association comprising FADA counterparts in countries like Brazil, Russia, and China in addition to national dealership association in the UK and the US. ‘It is very essential to build channels of communications across fast growing and mature automobile markets to imbibe best practices and learning from successful dealers in these countries,’ said Director General, FADA, Sevanti Shah. He said

that such an association would serve the purpose of exchange of ideas and views among dealers in high growth markets. India and Brazil may account for as much as 50 percent of the total vehicles sold globally over the next five to ten years and other markets would also occupy significant positions for automobile manufacturers. The need to have an international body, which could coordinate activities of national associations as well as facilitate dealer to dealer interaction, is being deeply felt. Shah is lookSevanti Shah, Director General, FADA ing to sign a Memorandum

ing members. FADA is also in the India and Brazil may process of organising account for as much as a seminar to help the next generation deal50 percent of the total ers to understand the vehicles sold globally nuances of the business over the next five to ten and maintain service standards in the backyears and other markets drop of rising volumes. would also occupy ‘It is essential to significant positions for bring continuity in the automobile manufacturers dealership business by ensuring that ownership or professional management do not come in the way of service delivery. Moreover, OEMs are of Understanding as early as counting on their existing set of February next year to lay the dealers to deliver on growing revfoundation for such a body, enue target,’ said Shah. He added with FADA as one of the foundthat one of major reasons behind this initiative is to groom younger dealers to take on organisational responsibilities at FADA as well as create a forum for passing on the learning and the success stories of dealers to their fellow dealers. Shah emphasised his position on vehicle safety and is hoping to take up the issue of mandatory vehicle certification for safety with appropriate authorities within and outside the government. He is preparing FADA members to gear up for safety certification on voluntary basis. He has received encouraging response from automobile manufacturers and dealers and is hoping to introduce certifying standards for different vehicle segment and training dealers to certify vehicles for safety issues. Another major issue on Shah’s immediate agenda as the Director General of the apex automobile dealers association is provision for training of drivers in the commercial vehicle segment. He is of the opinion that even as commercial vehicle production is on upswing with growing number of foreign manufacturers setting marketing base in India, driver training is getting very little attention from manufacturers. Dealers can play a very crucial role in providing trained and certified drivers for the CV segment. Driver training is unorganised and a crisis in terms of large number of drivers without requisite driving training and road sense is looming large. FADA member dealers will be encouraged to take initiative in terms of organising training programme in or around the trucking centres outside city limits, in the presence of regional transport officers. Though vehicle manufacturers are already active in driver training and sensitivity programmes, but such initiatives are restricted to a geographical region or major logistics zones. Dealers can play a very important role in taking training initiatives to small towns and villages. FADA managing committee is going all out to garner support of members in order to launch these and other initiatives in a gradual manner and ensure participation of all member dealers. To ensure maximum awareness on these initiatives, FADA managing committee is planning to form several sub-committees at various levels comprising newer and older FADA members in different geographical regions.

Auto Monitor

16 - 31 October 2010

CORPORATE

India Japan Lighting bags mandate to supply lamps to Toyota, Honda small cars Shobha Mathur Chennai

out by April 2011 and IJL expects to supply headlamps for around 20,000 units per annum. The company is also making inroads into the commercial vehicle and two-wheeler segments. It has bagged orders for the fi rst time from Daimler India Commercial Vehicles (DICV), Tata Motors (TML) and Ashok Leyland (ALL). ‘The CV industry is booming at the moment. Earlier, we thought the CV industry would not grow beyond 500,000 units, but it looks like it is set to grow

would be a low cost vehicle. Headlamps for trucks would be equipped with steel bodies fi tted with plastic reflectors. Earlier, lamp bodies of CVs in India themselves acted as reflectors, with a glass lens containing the optics. Today, the optics are shifting from glass to the reflector with the glass being replaced by a plain plastic lens that is transparent – enabling better lighting. Indian trucks are normally fitted with simple and rectangular tail lamps and round headlamps. With respect to two-wheelers, IJL has just made a beginning by bagging an order for supplying tail lamps to India Yamaha Motor’s (IY M) motorcycles. These would be fitted with light emitting diodes (LEDs). Since the light output of individual light-emitting diodes is small compared to incandescent and compact f luorescent lamps, multiple diodes are often used together for enhanced lighting. The component maker would be sourcing LEDs from suppli-

much beyond that fi gure. The latest Ernst and Young Vision 2020 report talks of very high numbers and has also envisaged a 14 percent CAGR for passenger cars, when we had assumed a 8.5 percent growth in our business pla n,’ adm itted Sundaresan. IJL is reworking its business plan accordingly. Profiled headlamps and standard rectangular tail lamps are currently under development for DICV. Besides, work is also underway on profi led headlamps for Tata Motors’ new nine-tonne light commercial vehicle that would hit the road by April-May 2011. The design of the lamps would follow a similar pattern for Tata Motors’ other LCV models. Daimler meanwhile, would start production of its trucks by early 2012 with a target ramp up to a peak volume of 100,000 trucks over a 10-year period. ALL’s U-Truck platform is also scheduled to get IJL lamps, with the company now designing a 7-inch round headlamp, besides a tail lamp. ‘We will supply tail lamps for the basic version of the LCV that will be produced under the ALLNissan joint venture. Lighting systems for different models of the LCVs are under discussion,’ elaborated Sundaresan. ALL’s basic LCV model would possess a very basic form of lighting, as it

ers like Philips or Toshiba, who are leaders in LED lighting with Printed Circuit Boards (PCB) sourced locally. Indian suppliers of PCBs would supply it as a module to IJL who would fi x it inside the lamp instead of the bulb. IJL is also planning to commence supplies of headlamps for two motorcycle models of Honda Motorcycle & Scooter India (HMSI) in early 2011. The order is expected to be large as motorcycle numbers produced by Honda would be in the range of 35,000 units per annum. IJL’s two production units – one in Bawal, Haryana and the other in Chennai – would deliver the goods with a cumulative output of 10,000 lamps per day. All two-wheeler lighting would be produced at IJL’s Bawal plant, while lighting systems for CVs would be manufactured at the Chennai plant depending on location of the customer. Headlamps for the Toyota Etios would be produced at Chennai, while Honda’s requirements would be met from Bawal. Last fi scal, IJL achieved its targeted top line of `200 crore with a fl at growth forecast for the current fi scal as new orders materialise only next fiscal. Hence, the company is looking at a 10 to 15 percent growth in FY12 riding on new model launches of auto manufacturers.

TKM is hoping to sell around 5,000 Etios models between January and March 2011 after rolling out the car in December this year. The Japanese carmaker plans to ramp up capacity to around 150,000 units per annum in a couple of years. IJL is a 100 percent supplier of these product to TKM

ndia Japan Lighting (IJL), the Chennai-based supplier of automotive lamps, will commence supplies of headlamps and fog lamps for Toyota Kirloskar Motor’s (TKM) new small car, Etios, from December this year. IJL would be a 100 percent supplier of these products to the Toyota Etios, while its ‘competitor’ would provide rear combination lamps. TKM is hoping to sell around 5,000 Etios models between January and March 2011 after rolling out the car in December this year. The Japanese carmaker plans to ramp up capacity to around 150,000 units per annum in a couple of years. IJL, a 50:50 joint venture between Lucas-TVS of Chennai, a nd Koito Ma nufacturing Company, Japan, would also be supplying headlamps for the

of its high-end models now because of currency fluctuations that is impacting their input costs,’ said President, P Sundaresan, President, India-Japan Lighting IJL, P Sundaresan. ‘Toyota has been encouragToyota Corolla from April next ing us to localise the headlamps year. The company currentfor them and IJL will meet their ly imports headlamps for the styling requirements. The headCorolla from Thailand. lamps to be fitted in the Etios will IJL has been a supplier to have a manual leveller, whereas TKM for the last 13-14 years. most cars in this country are fit‘Toyota has initiated localisation ted with electrical levellers. The only other car that is fitted with 24 cm vertical x 9.8 cm horizontal (non bleed) a manual leveller is the Renault Mahindra Logan,’ Sundaresan told Auto Monitor. e c n xperie rs of E While clarifying that the 25 Yea & s n o llati 0 Insta 0 0 function of both the levellers 4 r ove remained the same, the manual GRINDING l POLISHING l DEBURRING l SUPERFINISHING leveller was mechanically connected through cables while the other was connected through an electrical switch. Construction of both however differed, he said. l World Class Technology l High Quality l Guaranteed Performance The lighting major has also struck a deal with Honda Siel Cars India (HSCI), to supply headlamps for the new small car it plans to introduce in India early next year. Development of the headlamp has already been completed. The Honda small car is likely to be fi rst launched in Thailand during April 2011 to be followed three months later by a rollout in India, around August. The Thai version is expected to use adequate materials and components harnessed in the India version of the small car, so sources for the same component are not being sought in Thailand. Instead, certain items including headlamps have been Our Esteemed Customers identified to be produced in India and supplied through HSCI to Honda Thailand. This methodology is being pursued, as India volumes of the small car would be far larger than the Thai version. HSCI is exploring producImpco Patented tion output in terms of 180,000 GBQ Microfinishing of cars over a three-year period in Crankshaft / Camshaft India and about 70,000 cars over the same period in Thailand. Initially, Honda is likely to look at about 25,000 cars in the fi rst year Gear Tooth – both in India and Thailand, said Chamfering & Deburring Sundaresan. Headlamps comNew Cutter Method prising a plastic body, lens and Deburring of reflector would be delivered by Fine Blanked, IJL to HSCI for these vehicles. Laser Cut & ‘It is the fi rst time that IJL Sintered Parts will supply to a Honda car in India and we have to match their stringent standards,’ admitted Sundaresan.

Machines for deburring & finishing of Auto Components

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GRIND MASTER MACHINES PVT. LTD.

GRINDING l POLISHING l DEBURRING l SUPERFINISHING

B-11, MIDC, Rly. Station, Aurangabad, India. l TEL NO.: 0091-9822029958, 0091-240-2376262 l FAX NO.: 0091-240-2376205 E-MAIL : sales@grindmaster.co.in WEB : www.grindmaster.co.in l

The TVS Group company is also set to become a supplier to General Motors India, with headlamp supplies for the facelifted version of the Tavera. The vehicle is likely to be rolled

16 - 31 October 2010

Auto Monitor

CORPORATE

SOUTH INDIA SPECIAL

South India continues to be favoured destination for auto manufacturers Shobha Mathur Chennai

s the automotive sector surges ahead after a particularly rough patch during FY09, when the economic slowdown pushed proposed investments in new and existing projects to the backburner, South India gears up to welcome new OEMs and component makers into its fold. At least ten mega projects – involving investments in excess of `350 crore – are under evaluation stage by the State Government. Of these, four to five are big-ticket investments of major automotive companies with the balance being auto component and tyre manufacturers from Korea, Japan, Germany, France and the US. ‘About one or two of the big automotive companies may take the investment jump during the current fi scal as the sector is recovering after a downslide over the last two years due to the slowdown,’ Executive Vice Chairman, Tamil Nadu Industrial Guidance and Export Promotion Bureau, M Velmurugan told Auto Monitor. According to him, FY11 would witness investments of around `8,000 crore of which around `2,000 crore had already been bagged by the State Government. This included a MoU with JK Tyres for investing `1,500 crore in a greenfield facility at

ling `2,500 crore, including a Sriperumbudur for manufacnew tyre manufacturer. turing 5.6 million tyres a year, including five million for passenger cars and the rest for buses Attracting Investments and trucks. The plant is to start The State Government had production by 2011-end and supattracted investments to the tune ply radial tyres in 2012. of `10,000 crore in the automotive Another `6,000 crore of investsector during ments during FY11 are expected to be signed up by Novemberend. This would ramp up the Andhra Pradesh investment cycle in automotive projects to around `34,000 crore for the last four years starting mid2006, out of the total `54,000 crore investKarnataka ments in automotives, electronics and engineering projects by FY11-end. ‘If one or two of these Tamil Nadu large projects materialises, investment in the State could be well over `10,000 crore in FY11,’ said Velmurugan. ‘Each crore invested generates two FY10 and direct jobs; so it will Velmurugan lead to the generation was emphatic that of 20,000 direct jobs as the current fi nancial year well,’ he explained. would better the earlier record. Another `200 crore is likely In FY10, bulk investments to be invested in the remaining included the `4,000 crore investpart of the fi scal by a tractor joint ment by French tyre major venture in Tamil Nadu. Various Michelin for investing in truck component suppliers would and bus radials at Oragadam also be investing in the range of over a seven year period, besides `50-300 crore in the State, in their a MoU with Ford India worth individual capacities. There are `1,500 crore for further expantalks of big-ticket investments in sion of its engine and small car the auto component space totalfacility at Maraimalai Nagar

near Chennai. Further, the State Government is targeting `20,000 crore investments to flow into the State within two years of which automotives would account for over 60 percent, depending on the

OEMs’ readiness to invest in new projects. The MoU with Mahindra and Mahindra for their `1,800 crore automobile manufacturing facility at Cheyyar, near Chennai, is yet to be signed, although the project is already announced. ‘Implementation of new projects takes time and is normally spread over a three-year span with investments spaced out accordingly. The construction process of the plant itself takes about 20 months, so signing up of a new project does not mean that all investments will flow in during the same year,’ clarified Velmurugan.

Kia Interested Too? Meanwhile, rumours have been rife about South Korea’s second largest carmaker, Kia Motors, looking at investing in Tamil Nadu. Hyundai Motor Company holds a 35 percent stake in Kia Motors. According to a report by

the South Korean newspaper, The Chosun Ilbo, it is believed that Kia is likely to locate its plant near Chennai and is currently undertaking a feasibility study to zero down on a plant site. As per the report, Kia Motors is targeting a new production unit with a capacity to build 300,000 cars per annum and is likely to involve an investment of around `4,500 crore. The plant is likely to go on stream in 2012 and produce cars and SUVs, though Kia also possesses commercial vehicles in its product portfolio. While refusing to divulge any names, Velmurugan confi rmed that several big-ticket investments were under evaluation by the State Government. It is believed that Kia’s need to fi nd an alternative market to Europe, where most of its exports are headed and which had been deeply impacted by the global recession has necessitated this move. Earlier, there were hectic efforts by European carmaker Peugeot to identify a manufacturing site in South India, notably Andhra Pradesh and Tamil Nadu, with auto component makers and respective State governments giving presentations to the auto major. Subsequently, Peugeot is believed to have delayed its entry into India due to the depressed market conditions. Similarly, Toyota Kirloskar

Contd. on P35

Auto Monitor

SOUTH INDIA SPECIAL

16 - 31 October 2010

Synergies with VECV, mid-priced products for Volvo India Archit Revandkar Mumbai

ources in Volvo Buses India (VBIL) have confi rmed its intention to identify and leverage potential synergies with VECV, an equal stake JV of its parent group and Eicher Motors. By 2012, VECV Powertrain is scheduled to make medium duty engine platform comprising 5 litre and 8 litre engines from 215 up to 350 horsepower, based on the Volvo Group’s new PSS technology. Late last year, Auto Monitor was fi rst to report VBIL’s drive into the mid-priced bracket, in order to compete with Tata Motors (TML) and Ashok

Leyland (ALL) in the domestic space. In a price sensitive market like India, boosting localisation is the key to unlock the price play jig-saw.

Captive Body Building V BIL, a ticket brand in India, has established itself as a premium city and inter-city transportation solutions provider, with a captive body building facility at its disposal. However, even with the most liberal 2011 guidance issued by Managing Director, VBIL, Aakash Passey, it could close the current calendar year at 600 units. That then, is not a critical mass warranting an independent powertrain facility to service the volumes.

However, in order to power its mid-priced drive, V BIL would need to shed its reliance on imported engines and transmissions. Presently, Volvo Group’s sourcing strategy is executed through a global purchasing initiative and ‘we are increasing the India share in it gradually,’saidSeniorVP,VolvoBus, Rune Lundberg. According to Passey, the near 35,000-units bus market in India is sharply polarised between low-end, truck chassis oriented products making up to 90 percent of the pie, while premium players such as VBIL and Mercedes-Benz India (MBIL) address less than 10 percent of the share, with their premium

Aakash Passey with the Volvo B7R LE based CNG city bus of Volvo Buses India

luxury products. This is a classic case of lack of in-betweens denying choice to operators and end-users alike. With up to 20 km of road construction earmarked per day under the Prime Minister’s ambitious Pradhan Mantri Grameen Sadak Yojana, and other NHAI initiatives, an exponentia l growth rate and increasing trade connectivity, intercity migration and urban infrastructure development are now at the forefront of the drive.

Low Penetration In India, regulation is just about creeping into the bus business. AT Kearney estimated earlier in 2009 that the penetration of buses in the Indian market is as low as three units per thousand people. The total requirement of light, medium and heavy duty buses could surpass 70,000 units by as early as 2012. In fact, the gap between the bottom and tip of the pyramid of this market is so massive that it almost lends itself to newer segments and sub-segments. ‘As infrastructure improves and disposable incomes go up, customers would like to travel in safer, more comfortable and faster buses and at VBIL we want to be a part of that growth story,’ said Passey. Though Lundberg and Passey declined to share the product plan in detail, they said, Volvo’s fi rst such mid-priced product could come from India by 2013, which is a year after the VECV Powertrain lines go on stream. ‘It could have as much as 60 percent of local content, if not more,’ said Passey. It would therefore be priced aggressively and to aid the localisation drive, a significant part of the product engineering and designing would be based out of the country. The plans for mid-priced buses are in line with the fi rm’s ambition to quadruple sales to more than 2,000 units by 2015. Its current contribution to the Group’s global revenues is just short of 10 percent, which it hopes to double by then. By next year, 25 percent of its revenues could come from exports out of India and a significant part of the 1,000-unit capacity would be earmarked for export oriented products. Up to 50 percent of revenue could be raked in from soft services such as exports, used buses trade, refurbishing, transportation IT, telemetric support and consulting.

16 - 31 October 2010

SOUTH INDIA SPECIAL

Auto Monitor

ALL-Nissan LCV modelled on Tata Ace, but with higher payload capacity Shobha Mathur Chennai

he first light commercial vehicle (LCV) that is planned to be rolled out under the Ashok Leyland-Nissan joint venture will be a light truck on the lines of the industry leader, Tata Ace, with a payload capacity of 1.5 tonne. With a higher payload capacit y compared to the 745 kg load carrying capacity of the Tata Ace and 850 kg of the Mahindra and Mahindra Maxximo, the ALL-Nissan LCV would be fitted with a 1.5-litre three-cylinder Common Rail Diesel engine that would enable the engine to be more fuel-efficient. The diesel engine would generate around 65 hp (48 kw) of peak power, and would be BS-III and BS-IV compliant. Normally, Common Rail Diesel engines require no heating up time, and produce lower engine noise and lower emissions than older systems. Most European automakers have common rail diesels in their model line-ups, even for commercial vehicles. Some Japanese manufacturers, such as Toyota, Nissan and recently Honda, too have developed common rail diesel engines. The technology has also been adopted by a few Indian companies, including Tata Motors and Mahindra & Mahindra. Meanwhile, targeted to be a low cost vehicle, the seeding batch of the ALL-Nissan LCV is slated to commence test trials in December this year to be followed by the commercial rollout in April 2011, according to an industry source. Sources told Auto Monitor that the commercial vehicle major was talking in terms of an installed capacity of 100,000 units per annum at its Hosur plant but a production capacity of around 55,000 units per annum was expected to be realised by 2012. It is believed that the LCV would be initially produced in a monochrome white colour followed by other shades and would be quite different from the Ace in its front looks. The front portion would be wider compared to competition, sources said.

Growing Popularity It is also learnt that, later, ALL would spin-off other versions of the LCV with the goods carrier being a base version. Other editions could include a passenger variant of the LCV on the lines of the Tata Magic fitted with a hard or soft hood. According to Analyst, Angel Research, Vaishali Jajoo, the light truck segment is doing well with Ace and Maxximo being popular with transporters for moving their merchandise. However, no specifi c data is available on this segment. The ALL-Nissan joint venture meanwhile is slated to produce three light commercial vehicles over a three-year period, starting mid-2011. Out of the three LCVs proposed by the JV, two would be manufactured at

Ashok Leylandâ&#x20AC;&#x2122;s facility at Hosur, while the third would roll out

from the Renault Nissan plant at Oragadam, near Chennai. Earlier, the two partners had disclosed that the production of the joint venture project would leverage their separate manufacturing facilities at Chennai and LCVs would be rolled out from their plants bearing their individual badges and independent dealer networks. The joint venture would also tap certain export markets using their separate distribution networks in addition to meeting

the domestic requirements of the industry. Ashok Leyland holds a

majority stake of 51 percent in the ALL-Nissan JV.

16 - 31 October 2010

SOUTH INDIA SPECIAL

Auto Monitor

‘Don’t see OEM inertia against acceptance of aftermarket diagnostic solutions’ On the sidelines of AutoMechanika Frankfurt 2010, Auto Monitor spoke to President, Bosch Aftermarket Division, Robert Hanser on key drivers and challenges for the German giant’s drive in the emerging markets like India. Apart from the Bosch Service Centres and spares business, it manufactures a host of diagnostic tools in India for global markets. Hanser detailed the Bosch Aftermarket footprint in a nutshell. Excerpts: Archit Revandkar What is the India roadmap for Bosch Aftermarket? The India roadmap is very clear; it is already an important market for us globally. Right now, we have sizable manufacturing footprint here for products that are marketed globally. For instance, the diagnostics unit for air conditioners is made exclusively in India. That is an approach we call ‘local for global’. As the diagnostics products see more India-wide acceptance, we’ll see a ‘local for local’ approach too. But over the years, exports would continue their momentum as we leverage the Indo-ASEAN FTA and other trade arrangements. Secondly, we have also very recently initiated a pilot workshop concept for affordable cars segment in Brazil. It’s our understanding that most customers prefer aftermarket servicing solutions soon after the vehicles are out of warranty. This could work in India, and we’ll soon evaluate all options. Finally, we look up to our India teams for excellence in engineering competence that could be applied in our products and services across the board. In my view, the Indian aftermarket is extremely significant to Bosch and is likely to overtake even our home market (Germany) in size over a period of time. What is the affordable workshop concept all about and what was the response to the pilot in Brazil? This is targeted at the bottom of the pyramid products like the Tata Nano. Where the initial acquisition cost is about 2,500, you can’t expect the customer to shell out a fourth of that on servicing costs. Brazil had a ready market for small cars, so we did a pilot run there and the response was overwhelming. We started with small numbers in major cities and by the end of an 18-month period, we already have about 1,500 such centres. That is the potential of the segment and we hope to replicate this in the Indian context shortly. And because low cost cars are mechanically far more simplistic than premium vehicles – for instance, the complexities involved in a BMW or a Mercedes are far more than those in a Nano – so a quick ramp up is possible. The aftermarket solutions sector is based on the concept of workshop profitability. How do you deal with challenges to your drive in India, where the workshop scenario is fairly unorganised? To get the acceptance from customers, we really need to train our people. Training and extensive, precise training is expensive and a big challenge at the same time. But in emerging

markets it’s possible to develop a big business in far less time than that in developed economies. So, what Germany did for us in such a long time, India could do in five to ten years. Secondly, as the number of cars on road goes up, there are matters of emissions and fuel economy that need to be addressed. As

cars get sophisticated, workshops would need to invest in precision diagnostics to address the market and regulation compliance of newer cars, which the roadside mechanics may not be able to. So changing mindsets is another challenge but these are more a matter of evolution of the market that anything else. The diagnostics lines rely heavily on OEM IP in most cases. What is the arrangement you have with them to ensure that IP is respected and OEMs don’t lose out on the business case of a high margin aftermarket approach? We work very closely with OEMs. For some of them, we also design customised diagnos-

Robert Hanser, President, Bosch Aftermarket Division

tics for their service centres. But they cannot deny a choice to a customer to service his vehicles in the aftermarket, especially after the warranty period is over. In that case, we’d rather have the customer seek the best possible cover. It’s also in the interest of the OEMs to ensure that the cars go to the right setup for servicing. So, we have arrangements with them to deal with this issue, ensuring that IP and margins are respected. Even in an emerging market like India we don’t see any inertia on part of say a Tata Motors or an Ashok Leyland with regards to the right kind of data, to be fed into our diagnostic product lines.

Auto Monitor

SOUTH INDIA SPECIAL

16 - 31 October 2010

Ports in Southern India eye growing automobile exports; expand capacities Shobha Mathur Chennai

orts in South India are a significant reason for manufacturers deciding to set up their bases around the Chennai area. Barring Volkswagen India, most of the new entrants into the Indian market, with an eye on exports, have picked Chennai as their manufacturing base. The Ennore Port in Chennai for instance, recently shipped its first consignment of 3,866 cars cargo for Nissan Motor India (NMIL). The Port’s liquid berth was utilised for the purpose as the Port is undergoing its second phase of expansion. This involves developing a multi-purpose general cargo

terminal that would be completed by December this year and would ship primarily automotives and clean or project cargo. According to Chairman and Managing Director, Ennore Port, S Velumani, Nissan has indicated that it would be shipping 200,000 cars by 2012 from the Ennore Port. NMIL is the fi rst automaker to make use of Ennore Port facilities for shipping its cargo. A not her OEM, Toyota Kirloskar Motor has been talking with Ennore Port authorities due to the Port’s proximity to its manufacturing facility at Bangalore. TKM has found Ennore Port the ideal gateway for export of cars to countries in the East with its export markets targeting

Indonesia, Malaysia, Philippines, Thailand and Vietnam. Toyota had earlier indicated that it would be signing an agreement with Ennore Port to export its small car, the Etios. However, talks have not progressed for the last six months as the company indicated that it would export its small car in a year’s time. ‘Their shipments will not be too big being around 20,000 cars per annum,’ said Velumani. The Ennore Port would be in a position to handle shipments of around 3.5 lakh vehicles annually from their multi-purpose general cargo terminal once completed.

Upswing At Chennai The Chennai Port, meanwhile,

primarily caters to the requirements of Hyundai Motor India (HMIL), with Ford India commencing shipments of its new small car Figo in July this year. About 1,200 Figo compacts were shipped at that time but now with Ford announcing its plans to export to 50 new markets in the United Arab Emirates and North Africa from next year, the Port’s automotive cargoes would witness an upswing. ‘In FY11, car cargoes are expected to touch 2.75 lakh at Chennai Port compared to 2.73 lakh last fiscal,’ Deputy Chairman, Chennai Port, Captain Subhash Kumar said. Chennai is the leading ro-ro car terminal in the country. After Hyundai, the Port

has started attracting enquiries from major multinational OEMs like Toyota, BMW, Nissan and Indian major, Mahindra & Mahindra, said Kumar. With growing demand for berth space from OEMs, the Port is building one new ro-ro berth, which will enable cars to be driven right up to the ships. An investment outlay of `50 crore has been earmarked for it to be funded through the Port Fund. The berth would allow ships up to 300 metres in length to come alongside the berth. ‘It will be a multi-purpose berth, which will also carry general cargo besides automobiles. At present, it is at the tendering stage that has not been closed as yet,’ added Kumar. The berth would be ready in two years after the order is placed. A six-storey multi-level dedicated car parking yard is also being developed at the Chennai Port for accommodating 6,000 cars, adjacent to the ro-ro berth. It would be developed on BOT basis (build, operate and transfer) and would be ready in two to three years. It is expected to cost around `70 crore. The 23 berths for different kinds of cargoes currently at the Chennai Port are fully saturated and occupied. It is believed that the multilevel car parking would basically cater to Hyundai’s export of compact cars from India besides car exports of other OEMs.

Andhra Pradesh Gears Up There are no automotive cargo shipments through Andhra Pradesh ports so far, but the State’s Principal Secretary of Investment and Infrastructure, A Misra remarked, ‘work on the Machilipatnam Port is in progress and it will be ready by FY14, whereas Krishnapatnam Port is already functioning for the last two years.’ Of the 14 non-major ports located on the State’s 978 km coastline, the Government has so far offered eight to the private sector for development through public private partnership (PPP). These include Krishnapatnam, Gangavaram, Machilipatnam, Vada rev u, Ni za mpat na m, Meghavaram, Kakinada Deep Water Port and Kakinada special economic zone (SEZ). The total investment involved in the development of these ports is estimated to be `46,500 crore. The Krishnapatnam Port is slated to become a mega port and is the first State port to be awarded to a private party by the State Government. The fi rst phase of Krishnapatnam port was commissioned in July 2008 with a capital outlay of `1,500 crore. Construction on the second phase is currently in progress with completion expected by 2011. The Machilipatnam port in Krishna district of Andhra Pradesh, is under development and would possess a cargo handling capacity of 10 to 12 million tonnes of coal, iron ore for steel plants and cement after the completion of the fi rst phase of the project. This would be completed in three years and involve an investment of around `2,000 crore. Investment is expected to be in the range of `8,000 crore.

Auto Monitor

SOUTH INDIA SPECIAL

16 - 31 October 2010

Fenner (India) to expand, diversify presence in automotive segment Abhishek Parekh Mumbai

enner (India) is in the process of expanding its ma nufacturing capacity by around 30 percent this fi scal and further 30 percent in the next fi scal in order to deepen its engagement in the automotive segment. It is also in the process of identifying product segment in related products, where it already has a presence for forward and backward integration. ‘We are in talks with customers for identifying products and systems in order to diversify our product range. This diversifica-

tion could be in metal or rubber-based products or in any other segment that could suitably utilise the company’s existing strength and relationship in the automotive segment,’ said President, Automot ive, Fen ner (India), R Ravichandran. He further elaborated that the company is looking to double its existing capacity over the next three years due to booming demand from the OEM and replacement markets. He added that greenfield and expansion plans announced by vehicle

Fenner (India) is a leading manufacturer of industrial and automotive V-belts, oilseals and power transmission accessories in India with widespread sales and distribution network across the country. It also manufactures textile yarns under a separate division.

manufacturers across categories is likely to lead to total light motor vehicle production of around four million units over the next four years. This poses a major challenge for OE suppliers to manage the demand from OEMs and replacement market. The company is currently utilising around 90 percent of its capacity and is looking to expand the capacity f ur t her at its ex isting locations t hrough additional investments and debottlenecking. The growth in vehicle production is likely to be led by higher than

expected production of passenger cars and utility vehicles and the company is gearing up to cater to this demand.

Process Quality Fenner (India) is a leading manufacturer of industrial and automotive V-belts, oilseals and power transmission accessories in India with widespread sales and distribution network across the country. It also manufactures textile yarns under a separate division. Automobile belts and oil seals form an important part in all vehicle segments. The company has three manufacturing facilities at Madurai, Chennai and Hyderabad. The company’s facilities are ISO 9001:2000 certified for V belts and industrial applications. The company’s technology centre in Chennai has capability for conducting simulation studies using Finite Element Analysis from validation through rigorous indoor testing. The centre has testing facilities for raw materials, in-process components and fi nished products like industrial and automotive wrapped belts, raw edge cogged belts, poly-V belts, timing belts and various types of oil seals. Belts are used in a variety of application in power transmission for alternator, air conditioning and power steering applications. Oil seals are used as a sealing medium for oil used in various automobile applications such as engine, transmission, wheel, front fork and valve stem. In the OE segment, the company supplies products to prominent customers, who have very high quality standards to be complied with. In the replacement market, the company caters to markets, both urban and rural, all over India through over 400 distributors, who in turn offer products to over 20,000 spare parts dealers in automobile belts and oil seals. The market is driven by specifiers or mechanics, who use automobile belts and oil seals for servicing vehicles. It supplies products under brands Fenner, Powerflex, Pioneer, PowerTran, Ecodrive and Fenner MultiPull in the OE and replacement market.

International Presence The company is also a leading exporter of V-belts and auto belts in the country with products exported to over 40 countries including North and South America, Europe, Australia and South Africa. It supplies products under the brand name Top Drive, Top Drive Endurance Plus and Top Drive Cogpower in the overseas markets. In addition to automotive and industrial segment, it also caters to agriculture segment in the overseas market mainly for the replacement market demand. The company also offers products in the industrial segment for mechanical power transmission engineering segment. The product range in the industrial segment includes belts, pulleys, couplings, variable speed drives, clutches and gear boxes.

Auto Monitor

16 - 31 October 2010

CORPORATE

Fiat launches upgraded 1.4 litre Linea T-Jet Our Bureau Mumbai

arlier in October, Fiat India Automobiles (FIAPL) launched an updated variant of the Linea equipped with a 1.4-litre turbocharged petrol engine, imported from its Poland facility. Priced between `8.84-

9.29 lakh, ex-Mumbai, the T-Jet tech brings petrol turbocharge to an all new segment – the premium sedan space. As a result, the Linea shoots up from being a nondescript underperformer to segment leadership position in power and torque ratings. It makes all of 114 ps at 5000 rpm and 207 Nm at 2200 rpm. To

Rajiv Kapoor, Managing Director and Chief Executive Officer, Fiat India

put things in context, the power rating is a robust 24 ps over the Fire variant, while the kerb weight has gone up only by 50 kg. Talking about torque on offer, none of the Volkswagen Vento, Honda City and Maruti Suzuki SX4 comes any close to even 160 Nm at the peak of power play. The Linea has always straddled between two segments. Thanks to its generous dimensions, it claimed a spot in the C-plus order of sedans competing against the able Toyota Corolla, Honda Civic, Volkswagen Jetta, Skoda Laura and Chevrolet Cruze. However, with peak power at 90 ps, it failed to break even the Honda City’s performance barrier. ‘We were keen on updating the premium positioning, offering a unique value proposition for our customers,’ said MD and CEO, FIAPL, Rajiv Kapoor. However, the

premium positioning could come in only with the Duologic transmission, which he said FIAPL would launch shortly. Apart from the performance ratings, the company claims the T-Jet comes complete with 13 new features including all four disc brakes,

imported leather upholstery, 16 inch alloys, and improved ground clearance. The manufacturer also claims to have worked on upgrading its dealership and service rig, often blamed for sagging sales and a high stop price for genuine spare parts.

Tata Aria breaks cover Our Bureau Mumbai

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ata Motors (TML) recently launched its segment foray into the crossover market with the Aria. Showcased earlier at the Auto Expo 2010 in Delhi, the manufacturer has been able to retain most of the interesting bits flanked by the prototypes. The concept Indicruz, as it was known earlier, took up to four years of extensive testing with a helping hand from Jaguar Land Rover (JLR) engineers in its penultimate days on the drawing board. There are four variants on offer, though only one 2.2 litre Dicor engine is slated to do duties in all of them. It produces 140 ps and 320 Nm and is powered by a 32 bit ECU, capable of communicating with an immobiliser and an electronic interface regulating cruise control, ABS with EBD and traction control, and torque on demand 4X4. The gearbox is entirely new. ‘We have trained our dealers extensively on issues of attitude as well as technical competence to deal with a customer and a product of this (Aria) calibre,’ said Managing Director, India Operations, TML, PM Telang. The product would be displayed and retailed through 65 dealerships covering 80 percent of key markets in the country. Some segment fi rsts include B-pillar mounted air conditioning vents, a central slat through the roof liner for storage and six airbags. The product, priced between `13.18-15.85 lakh, is EU and Latin America ready and TML is scheduled to initiate exports by early next year, once the left hand drive is configured. In fact, thanks to the safety detail, Aria is already qualified for 4-star rating at the Euro NCAP crash tests. Over hundred engineers have worked on the product from scratch, Telang said, without divulging the development costs.

16 - 31 October 2010

CORPORATE

Auto Monitor

BMW launches ﬁnancial arm in India Our Bureau Mumbai

uxury carmaker, BMW, has set up an NBFC (Non Banking Financial Company) to offer customised and quick fi nancing options to its customers at the dealership level. BMW Financial Services has also received the necessary approvals to act as a corporate agent to offer insurance in association with Bajaj Alliance, its exclusive insurance partner in India. BMW Financial Services has received license to operate as an NBFC from the Reserve Bank of India (RBI). The wholly-owned BMW subsidiary will invest $50 million to set up its operations in India. ‘It was critical for us to have our in-house fi nancial services entity operating at our dealership

South India continues... Contd. from P21 Motor (TKM) is investing `3,200 crore in its second plant in Bangalore to manufacture its fi rst small car in India, the Etios. Group company, Toyota Kirloskar Auto Parts (TKAP) is also investing `500 crore in Bangalore for producing about 100,000 engines per year starting from the third quarter of 2012 and about 2.4 lakh transmissions per year starting early 2013.

Fresh Capex Confi rming the investment trend, Chairman, Automotive Components Manufacturers Association (ACMA) Southern Region, Harish Lakshman pointed out that significant investments were en route in new and existing capacities in the South. This was due to capacity constraints especially in cast iron castings, as enough investments had not been made in FY08. Hence, the frenzied activity witnessed by component makers post slowdown in enhancing capacity to meet the rising demand of OEMs. The Rane Group for instance, is expanding capacity at its Puducherry and Uttarakhand plants of Rane Madras and at the Trichy facility of Rane TRW Steering Systems. In total, the group is investing `270 crore on expansion during FY11. Rane Madras is also gearing up for commencing construction work at their Sanand facility for the Tata Nano soon. Besides, TVS Group companies and other component makers are also adding capacity for meeting domestic demand as exports still continue to remain sluggish. ‘It will take about a year and half for the sector to return to its original levels as profit margins have also taken a beating,’ Lakshman added. According to the ACMA and Ernst and Young Vision 2020 report, the auto component sector is pitted to touch annual revenue of $110 billion by 2020 necessitating an investment of $35-40 billion during this period. Lakshman said about 40 percent of this investment was expected to come from the South especially in chassis parts, suspensions, braking systems, seats and trims among others.

slew of models along with level and the launch of our its fi nance arm, President, fi nancial services arm would BMW India, Andreas Schaaf help propel our growth in the pointed out that in-house Indian market,’ said Chief and dedicated fi nancial servExecutive Officer, BMW ice at the dealership level Group Financial Services, may act as the crucial missGeorg Bauer. He added that ing link for BMW’s growth in the distinguished customIndia. He also pointed out er base of BMW makes it that fi nancial services would very critical to have options also cater to the pre-owned of customised finance segment in India under the offering tailor-made and BMW brand. discreet solutions. Sanjiv Shah has been appointed the Managing Three Modes Director and Chief Executive BMW Financial Services Officer of BMW Financial would operate in retail Services in India. f ina ncing, commercia l To pave the entry of BMW Sanjiv Shah, CEO, BMW Financial Services India with financing and insurance Financial Services across its Georg Bauer, CEO, BMW Group Financial Services solutions in India. The retail to BMW customers. entire dealership network, BMW fi nancing business would cater Citing the example of South has already terminated its excluto the end customers, while comKorea where sales shot up from sive arrangement with HDFC mercial fi nancing would provide 5,000 units to 10,000 units in Bank in India. Finance would be fi nancial solutions to dealers in three years after BMW launched available at 8.75 percent interest trade fi nance, working capital

as well as setting up dealerships among other requirements. ‘Though BMW customers would always have an option of opting for fi nance solutions of their choice of public or private sector banks and NBFCs, we would seek to differentiate ourselves through our customer-centric approach and service. BMW customers are exclusive and discerning and do not typically look for lowest cost of fi nancing alone,’ said Shah. BMW Financial Services was established in 1991 and has presence in 31 countries, besides India. It serves around three million customers globally with assets of around €70 billion. It has been assisting the growth and outreach of BMW brand helping BMW Group achieve its growth targets in more than 60 countries.

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16 - 31 October 2010

STUDY

Demand from replacement – huge growth potential for Indian industry Exhibit 1 : Trend in domestic sales and exports volume growth

Exhibit 2 :Market share of key players FY08

FY09

FY10

Hero Honda

45%

49%

48%

Revati Kasture Head – Industry Research

Honda Motorcycles and Scooters

12%

14%

13%

TVS Motor

16%

15%

14%

Dhimant Kothari Manager

Bajaj Auto

23%

17%

19%

Top 4 players

96%

94%

No of players

Vishal Srivastav Analyst

Source: SIAM and CARE Research

Exhibit 3 : Estimated increase in capacity

fter a bumpy ride in FY08 and FY09, the two-wheeler industry came back into top gear in FY10, registering a strong growth of 26.4 percent in domestic sales. The momentum sustained in FY11 as well, with the fi rst five months (AprAug 2010) registering domestic sales growth of 27.2 percent. Rise in personal disposable income, lower rural penetration coupled with improvement in systemic liquidity were some of the

Source: SIAM and CARE Research

key factors driving this growth (Ref: Exhibit 1). Strong recovery in demand brought relief to the two-wheeler industry, which had witnessed sluggish sales on one hand and rise in input costs on the other

during FY09. Bajaj Auto (BAL) witnessed its domestic sales grow impressively by 39 percent in FY10. Market leader Hero Honda Motors (HHML) too registered strong growth of 24 percent, followed by TVS Motor and Honda Motorcycle & Scooter India (HMSI) that witnessed rise of around 20 percent and 15 percent respectively in their domestic sales volumes. CARE Research is of the opinion that the domestic twowheeler demand would register a growth of around 19-20 percent in FY11 (Ref: Exhibit 2).

Aggressive expansion plans lined up for twowheeler industry Rising sales have led to pressure on existing capacities of almost all the major manufacturers, pushing utilisation at higher levels. Consequently, waiting period for some of the key models, which otherwise were available on spot basis around eight to 10 months back, currently range anywhere between two to 12 weeks. Favourable industry environment and buoyant

F: forecast

Source: Industry and CARE Research

demand outlook have triggered manufacturers to go for expansion of their capacities (Ref: Exhibit 3). According to CARE Research, investments of `900 to `1,000 crore have been lined up in the industry for next two to three years.

Increased affordability and higher operating cost to trigger old two-wheeler users to upgrade to newer ones Healthy sales volumes during the last one and half decade have translated into large population of two-wheelers, which is estimated by CARE Research to be close to 78 million. CARE Research observes that nearly 16 million two-wheelers operating are aged

Exhibit 4 : Age wise proportion of population

Source: CARE Research

Exhibit 5 :Operating cost comparison – new vis-à-vis old motorcycles (per month) Unit

New

Old

Fuel economy

Kms/litre

Distance travelled

Kms

1,250

Fuel cost

1,406

2,009

Maintenance cost

150

Lubricant cost

250

1,731

2,409

Cost of operation

Note: 1) Two-wheelers with age up to 2 years is considered to be new two-wheeler 2) Two-wheelers with age above 10 years is considered to be old two-wheeler 3) Distance travelled is considered 50 kms daily, for 25 days per month Source: CARE Research

above 10 years, which forms around one-fi fth of the current two-wheeler population. However, the notable point is that the proportion of vehicles aged above 10 years varies in all the three segments, namely motorcycles, scooters and mopeds. In case of scooters and moped segments, the proportion of vehicles aged over 10 years is higher, whereas it is much lesser in case of motorcycles. During the last eight to 10 years, consumer preference has shifted from meta l-bodied geared scooters to motorcycles with better technology and styling. Thus, the fleet of motorcycles aged below 10 years constitutes significant proportion in overall motorcycle population (Ref: Exhibit 4). Availability of a large variety of motorcycle and gearless scooter models with improved technology and better styling, combined with ease in availability of fi nance and rise in household income levels is prompting old two-wheeler owners to upgrade to newer models. Furthermore, CARE Research observes that the running cost of two-wheelers aged above 10 years is around 40 percent higher as compared to two-wheelers aged between one and two years, which too would induce the replacement of old two-wheelers with newer ones (Ref: Exhibit 5).

Rising competition – A bigger cause of concern for profitability than input price rise Similar to passenger cars and commercial vehicle segments, the two-wheeler industry has also witnessed huge inflow of Foreign Direct Investments (FDI) after the Government allowed 100 percent foreign equity participation through the automatic approval under the Auto Policy 2002. Huge growth opportunity in the domestic market has led to many global companies like Suzuki and Yamaha to start their operations independently in

Contd. on P40

Auto Monitor

CORPORATE

Magneti Marelli to introduce AMT... Contd. from P1 transmission in a single kit. This allows considerable improvements in performance, both in terms of speed and comfort when changing gear.

Strong Indian Presence Magneti Marelli began its Indian innings in 2007 with the establishment of a joint venture with Maruti Suzuki India (MSIL) and Suzuki Motor (SMC) for manufacturing ECUs for diesel engines. Subsequently, it entered into a series of joint ventures for most of the product categories in which it has a global presence. It has an operational joint venture w it h Endura nce Technologies for manufacturing shock absorbers, with manufacturing presence in Chakan for applications in passenger cars and commercial vehicles. It entered the automotive lighting and engine control components business by establishing a joint venture with Sumi Motherson

16 - 31 October 2010

Group with facilities located in New Delhi and Pune. The company also manufactures automotive exhaust systems through a joint venture with SKH Metals and SKH Sheet Metal Components, located in Pune. Its fourth

joint venture is with Unitech Machines, which makes automotive electronics systems. This JV is located in Manesar for design, development and assembly of electronic components such as instrument clusters and body electronics as well as telematics. The Italian auto component group has seven manufacturing facilities in India employing around 800 workers in various capacities.

Mitsubishi eyes EV market in India; to set up car unit... Contd. from P1 units per annum of the I-MiEV in Japan. Due to the high cost of the car, Mitsubishi will revisit the plan of bringing I-MiEV into India in the next couple of years,’ Executive Vice President and Head of Mitsubishi Business at Hindustan Motors, YVS Vijay Kumar told Auto Monitor. i-MiEV comes with special fast charging battery kits in Japan that enables the battery to be recharged within 20 minutes. The company is betting on India building the necessary infrastructure for operating electric cars on the Indian roads over the next three to four years, when it can look at launching its I-MiEV in the country. The company is also drawing a new small car strategy for the Indian market. ‘Mitsubishi will start thinking in terms of introducing a new small car in India after about a year and half, when it will look at a clear positioning of its small car in the Indian market. Globally the small car should be introduced in a couple of years,’ confirmed Kumar. Queried on whether Mitsubishi would set up a new manufacturing facility for the small car at Thiruvallur, near Chennai, where its produces its SUV and sedans, Kumar replied, ‘A new unit is likely to come in the existing premises at Thiruvallur as we have an area of 175 acres of land with only a part being utilised currently.’ The Thiruvallur plant of Hindustan Motors began operations about three decades ago to manufacture earthmoving equipments such as dumpers, front-end loaders, and crawler tractors. Since 1998, the plant began manufacturing the Mitsubishi Lancer,

post the technical collaboration with Mitsubishi Motors. The Thiruvallur plant has a capacity to produce 12,000 vehicles per annum of which about 50 percent capacity would be achieved by this year.

New Plans This year, the company plans to launch a new version of its Pajero SUV, conforming to BS-IV norms. At present, all other SUVs in its portfolio have transited to BS-IV norms with the exception of the Pajero, forcing the company to sell the Pajero in Tier II markets in the country. SUVs constitute 70 percent of the company’s total sales. In Q3FY11, Mitsubishi Motors would launch its high-performance sedan, the Lancer Evolution X, aimed at racing enthusiasts. With close to 290 bhp of power from a two-litre turbo-charged petrol engine, the car would be the most powerful sedan available at around `40 lakh. The Evo will, however, only be available with an automatic transmission. The Pajero Sport would be rolled out in FY12 with a downsized cost structure of 20 percent. Mitsubishi will launch the Pajero Sport in two engine versions of 2.5-litre and 3.2-litre diesels, priced at `20.69 lakh. ‘We plan to sell around 6,000 units of our models in the current fiscal compared to 2,500 units last fiscal,’ admitted Kumar. ‘This will enable us to reach the full 12,000 unit capacity by FY13. We will further ramp up to 24,000 units per annum by FY14.’ Out of the proposed sales of 6,000 units the Outlander would contribute 2,500 units, Pajero about 1,500-1,800 units, Montero 300 units and the Cedia and Lancer would bring up

the rest, he said. The overall premium SUV segment in India is expected to notch 20,000 units this fiscal compared to 12,500 in FY10, Kumar said. To give a fi llip to its expansion plan, Mitsubishi inaugurated 14 new dealerships in the county since April this year bringing up its total dealer outlets to 54. The company’s target is to establish 62 dealerships pan India by March 2011.

Improved Business Part of the CK Birla Group, Mitsubishi Motors, Kumar said, is not averse to acquisition of stake in the HM-Mitsubishi partnership and talks on the issue are ongoing. At present, Mitsubishi does not hold any stake in the partnership having primarily a technical collaboration. Meanwhile, the localisation content in Mitsubishi vehicles that are assembled at Thiruvallur is still very low. The Lancer is 35 percent localised, while the others have around 10 percent local content. Plans are afoot to scale up to 25 percent in the future. In the premium SUV segment, Mitsubishi has a 15 percent share, and the company target to achieve a marketshare of 20 percent in the next fiscal. The newly launched Outlander SUV, meanwhile, has helped HM-Mitsubishi record a growth of more than 300 percent in its premium SUV sales this year. From 183 units sold in FY10, it has sold 780 units in the fi rst six months of FY11. Overall, the premium SUV segment had grown 75 percent in the fi rst six months of last year, while the first five months of the current year has seen the segment grow a staggering 250 percent.

Demand from replacement... Contd. from P38 India, which has further intensified the competitive scenario in two-wheeler industry. The competition grew swiftly in the dominant motorcycle segment, which was evident as sales of Honda Motorcycle & Scooter India (HMSI) surpassed TVS Motor during last five months of the current fiscal to become the third largest motorcycle manufacturer. Having access to large technology pool of their parent company, these multi-national manufacturers are able to frequently launch models equipped superior technology. Similar scenario has been creeping up in the gearless scooter segment as well, which is the second most lucrative mar-

ket. The entry of Mahindra and Mahindra and Suzuki Motorcycle India (SMIL) has resulted in market leaders like HMSI and TVS Motor losing their share significantly from 83 percent in FY08 to 71 percent in FY10. Furthermore, during the last three to four years, the industry has observed structural shift in competitive scenario from intrasegment level to inter-segment level, as gearless scooters have started posing threat to motorcycles. Gearless scooters, which were more female centric have started targeting a wider customer base, i.e. male buyers, by introducing models with better styling and higher engine capacity (Ref: Exhibit 6). CARE Research foresees the

Exhibit 6 : Trend in segmental mix over last five years

Source: SIAM and CARE Research

competition is set to intensify further as manufacturers will constantly strive to come out with new strategies to gain market position. CARE Research is of the opinion that, the pressure on profitability would mount up because of enhancement in competition levels. o Commodity prices are expected to remain fi rm on the back of healthy demand scenario. CARE Research expects the prices of key inputs like steel and aluminium to further go northwards. However, stiff competition would not allow players a complete passthrough of the rising input costs to customers. o Increasing levels of compet it ion wou ld push manufacturers to increase allocation on advertising, marketing, distribution and product development in order to sustain as well as increase their marketshare. CARE Research foresees, operating margins of the industry to come down by around 150-200 basis points from around 15 percent in FY10 to around 13-13.5 percent in FY12. This article has been prepared by CARE Research, the research division of CARE Ratings. No part or whole of this may be reproduced without permission.

Auto Monitor

16 - 31 October 2010

CORPORATE

Nissan Micra’s diesel avatar... Atul Industries gets... Contd. from P12

The Micra is the fi rst of the locally produced models. NMIPL expects to sell over 100,000 units of all the models in India by 2013. NMIPL’s existing range of products includes the X-Trail SUV, the Teana luxury sedan and 370Z sports car – all of which are imported from Japan as completely built units. In tune with this target, the company recently revealed the sketch of its ‘new global sedan.’ This will be the second product after the Nissan Micra to be built on Nissan’s versatile V-platform. It would not be a Micra sedan but a completely new look sedan, a company statement said. The new global sedan would premiere at the 8th China (Guangzhou) I nter nat iona l Automobi le

Exhibition in December 2010. To be launched fi rst in China, the model would be launched in India in the second half of 2011 and would be manufactured at Nissan’s Oragadam plant.

Meeting Global Needs Meanwhile, the Renault Nissan Technology and Business Centre at Chennai, an offshoot of the Renault Nissan Alliance

is catering to the global engineering needs of both Nissan and Renault in various technologies such as Advanced CAE, product development, digital vehicle development and fundamental research. The Renault Nissan Alliance had earlier in 2008 announced their plans to invest `45 billion over a period of seven years. In March this year, the Renault-Nissan Alliance plant was inaugurated after 21 months of its groundbreaking ceremony in June 2008. The plant possesses an initial capacity of 200,000 units per year and can reach 400,000 units per year in full capacity in the future. The company has 20 dealers operational pan India with a target of reaching 100 dealers by 2013.

Contd. from P12 enthusiasts. The initial roadmap to creating awareness is dotted with product clinics and road shows, followed by specific user group meets and demonstrations. ‘We could look at covering farm equipment workshop owners or automotive garage mechanics is multi-city events,’ he said. Currently, WD40 enjoys a 50 percent share in the segment, with a couple of local players competing in the arena, he informed, while adding that the market is growing at 20 percent annually.

Large Potential The potential is massive, as Russia currently utilises ten times more WD40 in volume than India, while China is not too far. Challenges, he said are plenty, starting with the lack of awareness within potential users and an absurd duty structure that

hikes the retail price points by over 30 percent. ‘Any revision in duties would be passed on to consumers. We are confident that India would gradually emulate a near zero percent duty structure of the UAE and some other markets, over time,’ said Tweed. Another teething challenge presents in the form of the Indian mindset that prefers to pay to get served, unlike the developed economies where petty services come at a massive cost. ‘India is not yet a DIY culture though we hope it maps the western markets in that regard gradually,’ said Tweed. That added Bhasin, is the second phase for Atul – taking WD40 to households. In the United States for instance, the product penetration beats Coca Cola at 81 out of 100 households. ‘The potential it holds is exponential, thanks to the population and demography,’ he said, even as he reassured a long-standing relationship with the $300 million maintenance fluid fi rm that employs only 310 employees, thereby emphasising the role of its country-partners based model.

Mercedes launches R-Class Our Bureau Mumbai

arlier in October, Mercedes Benz India (MBIL) launched its flagship crossover, the R-Class at `58.8 lakh, ex-Mumbai. Powered by a 3.5 litre V6, the R-Class comes complete with 7G-Tronic transmission and all-wheel drive. The product is Mercedes Benz’s fi rst attempt at the crossover market, addressing the premium people carrier demand, following its withdrawal of the Viano. The MUV segment in India is led from the front by bottom of pyramid products like the Mahindra Xylo, Toyota Innova and Tata’s Sumo Grande, not to miss the newly launched Aria and the MSIL Eeco. However, a thoroughbred luxury contender was missed sorely. ‘We expect the crossover segment to bring newer customers to Mercedes in India,’ said Head, Sales and Marketing, MBIL, Debasis Mitra. The V6 makes 350 Nm and 200 Kw and is mated by the 7G Tronic to a 4-matic all wheel drive. Ride and handling is supported by manualautomatic Airmatic suspension, ESP and ETS. The trademark Pro Safe package is a part of standard equipment, which includes airbags, Neck-Pro restraints and the Pre-Safe mechanism that shuts windows and doors in the event of a crash. Standard equipment on the R-Class includes rear seat entertainment solution, easy slide entry, a Harman Kardon Logic 7 sound system and a media interface socket for Aux and USB connectivity. Mitra said the untapped demand for the R-Class segment could see improved localisation on the product shortly, however he did not confi rm or deny any plans for a stripped down corporate edition of the product, which could potentially appeal to the private cab segment.

Auto Monitor

16 - 31 October 2010

EVENT

Paris Show 2010 offers EV, hybrid d Mark Carbery

he contrast between this month’s Paris Mondiale de l’Automobile – as the French grandly call the show, which alternates with Frankfurt – and the last time it was held, in 2008, couldn’t have been greater. With over 100 vehicle debuts, including around 70 new production models, it was difficult to fi nd any evidence of an indus-

Jaguar C-X75 Concept

try in crisis. True, it’s the job of international motor shows to wow the world with new technologies, visionary thinking, glamorous presentation, stunning concepts and even a little excess. The

Peugeot 3008 Hybrid

Lamborghini Sesto Elemento concept left senior executives transfi xed like schoolboys, and Lotus presented an entire concept range of five new vehicles, each with its own celebrity. But it was on the Renault

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brand, the profoundly mundane but cheaply made Latitude large sedan – morphed from its subsidiary Samsung – and bold claims by Carlos Ghosn for the group’s expanding collaboration with Daimler. Renault has blazed a trail in its alliance with Nissan, and in collaborations with GM as well as Daimler. This is a central theme for the future of the automotive industry. Without collaboration, carmakers will not be able to generate the economies of scale necessary to tackle new markets, legislative targets and, especially, electric vehicle technologies, where they must be able to establish a competitive position in a new landscape, which will ultimately be shaped by the Chinese. A nd w it hout Da i m ler, Renault’s extraordinarily ambitious surge into the battery-only EV market would appear suicidal as much as brave. The company’s Paris stand showed a near-production version of the Zoe electric mini-car, one of four EVs which will be launched by mid-2012. Alongside it were full production versions of the electric Kangoo van, which begins the onslaught in 2011, the Fluence mid-size sedan which closely follows it, and a prototype of the Twizy two-seat quadricycle which will complete the range. Renault’s alliance partner Nissan showed its Leaf, the world’s fi rst family-sized battery-only car, which can already be ordered for early 2011 delivery and is being built in the UK. Peugeot, Citroen and Mitsubishi had versions of their sharedplatform mini-EV. And Volvo announced an electric version of its C30 hatchback for sale in 2011, while Ford’s electric Focus and VW’s electric Golf are close to production.

Multiple Barriers These are part of the fi rst wave of pure EVs, as opposed to petrol-electric hybrids, from

16 - 31 October 2010

Auto Monitor

EVENT

d direction to industry

Nissan Leaf

Range Rover Evoque

mainstream carmakers, so Paris represents a massively important moment for the European industry. However, for consumers the leap from petrol-electric hybrid to pure EV will be huge in comparison with the seamless transition from petrol and diesel to hybrid, and there are multiple barriers to adoption. First there’s the range – typically only around 100 miles on a full charge. Then there’s the need to charge vehicles for up to eight hours through a domestic socket, and that power may come from a non-renewable source. The current cost of the batteries means that EVs are also expensive to buy (Mitsubishi has reduced the price of its i-Miev city car but it will still cost the equivalent of around $45,000 in Europe before any Government rebates), and the weight of the battery pack counters some of the vehicle’s energy efficiency as well as taking up space and affecting ride and handling. Battery life is also an issue: they will be outlived by the car, and could cost thousands to replace. That creates a funding problem, with separate battery leasing likely to be necessary. Renault will sell the cars but lease their batteries, but its EV strategy carries risk in every area. Other carmakers presented a far less risky EV front in Paris – not least Renault’s partner Daimler, with an electric version of its A-Class and an electric smart ForTwo mini vehicle, both fitted with batteries from another EV partner, Tesla, and essentially urban transport of the kind least affected by the range limitations of pure EVs.

Hybrids Galore Renault’s great rival Peugeot offered a contrast, complementing its single mini-EV offering with the launch of the 3008 HYbrid4 – the world’s fi rst diesel-electric hybrid. The Hybrid4’s diesel engine drives the front wheels, but 37 bhp of the total

output of 200 bhp comes from an electric motor powering the rear wheels. This moves the hybrid game on and offers a stepping stone for buyers not ready to make the leap to plug-in hybrids and pure EVs, the options for which are all smaller than the spacious 3008. Production-ready versions of GM’s Chevrolet Volt and Opel/ Vauxhall Ampera range-extenders, which come to Europe from 2011, were on display, offering another variation on the hybrid

theme – and one which consumers may well be happy to embrace. The Ampera uses a petrol engine alongside an electric motor but, unlike previous hybrids (and even the 2012 plug-in Prius), only to provide electricity when the battery charge runs out – not to drive the wheels directly. If claims that we are at a watershed moment are credible, then the Ampera is the best justification. By providing an electrically driven family car capable of 350 miles, GM is eliminating the

range anxiety barrier. While the Ampera is a technological compromise rather than a pure EV, critically it meets consumers’ benchmark minimum of 300 miles. It also scores eco points by managing the typical daily requirement of 30-40 miles solely on battery power. Almost every OEM present had some sort of EV to showcase. Toyota, Lexus, Kia and Honda had new production hybrids, and there were countless concept EVs, perhaps most notably

electric scooters from smart and Mini, which would not only fit nicely with their chic brands but offer their parent companies significant reductions in average CO2 outputs to help meet the EU’s 95g/km target for 2020. If they showed that being green can be chic, Tata’s Jaguar and Land Rover proved that it can be downright sexy. In addition to launching the new baby Range Rover, the Evoque, which is expected to include a hybrid option, Jaguar stole the show with the C-X75 concept. It may be a supercar but the C-X75 offers a new, low-CO2 direction for such vehicles, with an electric motor in each wheel and a central battery pack and extended range provided by a pair of micro turbines driving a generator to recharge the batteries. That’s the sort of thing you want to see at motor shows. It’s also the kind of thinking the industry needs, and, with the forthcoming JLR hybrid powertrain, gives the Tata brand’s intended alignment with electrification intriguing possibilities.

16 - 31 October 2010

GLOBAL WATCH

Auto Monitor

NHTSA may require 62 mpg by 2025 T

he Barack Obama administration in the United States said it could impose a fleetwide requirement of 62 miles per gallon for cars and light trucks by 2025, but acknowledged that such a mandate could add $3,500 to the average cost of a new vehicle. The administration said it is considering annual increases in fuel efficiency ranging from three to six percent between 2017 and 2025, which equates to a fleet-wide average of 47 mpg and 62 mpg by the period’s end. The range of costs per vehicle is $770 to $3,500, depending on the stringency. If it adopts the toughest standard, the administration said, automakers would have to focus on plug-in electric, full electric and hybrid technology and rely ‘less on advanced gasoline vehicles and mass reduction.’ Under the toughest scenario, the Government estimates 14 percent of all vehicles would be full electric vehicles. The agencies also assume vehicles will get 15-30 percent lighter by 2025 depending on how tough the requirements are. However, the 250-page interim technical report released recently doesn’t look at the safety impacts of the range of fuel efficiency increases. The administration will propose its plan by late 2011 and will fi nalise new requirements by 2012. Today’s formal notice sets off a two-year battle between automakers and environmentalists over the stringency of the new rules. But the Env ironmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) said under all scenarios, consumers would save money over the lifetime of ownership. Under the six percent increase, owners would see fuel savings of $5,700 to $7,400, which would cover the higher up-front costs within four years. The six percent annual requirement would save 1.3 billion barrels of oil over the lifetime of the vehicles. But some automakers, especially smaller ones, could face higher costs. NHTSA and EPA could also scrap the three to six percent range, and go higher or lower, the agencies said. Separately, eight governors, led by New York’s David Patterson, urged the Obama administration to sharply boost car and light truck fuel efficiency requirements to a fleet-wide average of 60 miles per gallon by 2025. That would represent about a six percent annual increase over the 34.1 mpg standard set by the administration for the 2016 model year; automakers argue that the administration should base the next round of increase on a scientific review, not an arbitrary figure. The governors of New York, Maine, Massachusetts, New Mexico, Maryland, Pennsylvania, Oregon and Washington also want the administration to boost the efficiency of medium- and heavy-duty trucks by at least 35 percent when they set the fi rst ever standards for those larger trucks, as required under a 2007 energy law. ‘We have seen the automakers meet goals time and time again, and we are confident that techno-

to put the country’s auto logical improvements, industry back in a leaderincluding the plugship role. But beyond the in hybrids and pure The Obama administration jobs and economic benelect r ic veh icles is considering annual efits, a stronger standard that they are rollincreases in fuel efficiency will help break our criping out, will increase pling dependence on oil,’ efficiency and affordranging from three to six percent said Director, Natural ability further and between 2017 and 2025, Resou rces Defence will make 60 miles which equates to a fleet-wide Council Transportation per gallon commonProgram, Roland Hwang. place,’ said President average of 47 mpg and Barak Obama in a 62 mpg by the period’s end. statement. The govExpensive The range of costs per vehicle ernors echo the push Proposition by more than 20 enviis $770 to $3,500, depending The high end of new ronmental groups for requ i rements cou ld on the stringency 60 mpg. be very expensive. The ‘The problem with administration has said setting the bar at that the boost to 34.1 mpg just a three percent by 2016 would cost autotranslates into a 62 miles-per-galimprovement per year is that it makers $51.5 billion. NHTSA lon fuel efficiency standard, will puts the US auto industry on a chief, David Strickland said the really encourage innovative ideas, path towards mediocrity. A six Obama administration wouldn’t create more jobs, and do more percent improvement, which endorse a 60 mpg f leet-wide

requirement for vehicles by 2025 until it conducts a full review. ‘We’re not going to make any decisions until we have the data and the facts and science behind us,’ said Strickland. ‘We’re not making any prognostications on what is feasible until we know for a fact.’ The 2017-25 timeframe ‘feels like a long way away, but it isn’t,’ Strickland said, noting the long-range product planning of automakers. The State of California agreed not to invoke its legal right to impose its own tailpipe emissions limits through the 2016 model year as part of a White House deal with automakers that essentially adopted California’s 34.1 mpg fleet-wide requirement by 2016, but gave automakers more flexibility in the early years of the 2012-16 requirements.

Auto Monitor

GLOBAL WATCH

16 - 31 October 2010

Hyundai Sonata, BMW 5 Series rated on top in new US safety tests T

he BMW 5 Series and Hyundai Sonata topped all vehicles in new United States Government crash tests for safety, conducted by the National Highway Traffic Safety Administration (NHTSA). But nearly every other vehicle tested got overall ratings of four stars. The only models to receive two or three stars were from Toyota and Nissan, according to a report in the Detroit News. The Toyota Camry – the bestselling vehicle in the United States since 2002 – and its hybrid sibling got three stars each, while the Hyundai Versa received two stars. Under new tougher crash tests, the NHTSA said 29 out of 34 2011-year models tested

Hyundai Sonata

received four out of fi ve stars in overall ratings. The overall vehicle score combines the results of a frontal crash test, side crash tests and rollover

BMW 5 Series

resistance tests and compares those results to the average risk of injury and potential for vehicle rollover of other vehicles in setting a rating of one to five stars.

Previously, vehicles got three crash test ratings for frontal, side and rollover ratings. The Government revised its 31-year-old New Car Assessment

Program in 2008 after too many vehicles were getting the highest scores, but gave automakers until the 2011 model year to face the new tests that grade vehicles on 1-5 star basis. Among the 2011 models getting overall four star ratings included the Ford Fiesta, Cadillac Escalade, Chevrolet Malibu, Ford Taurus, Infi niti M37, GMC Yukon, Jeep Grand Cherokee, Subaru Outback, Toyota Sienna, Honda Pilot, Kia Sorento and Audi A4. Just one model – the BMW 5 Series – got five stars on the fi rst try. Initially, the fi rst Sonata tested received four stars. Hyundai asked for a retest after it made modifications and ultimately received the highest grade. That version is currently in production. Interestingly, in a sign of how tough the tests are, neither the BMW 5 Series nor the Hyundai Sonata got ‘five stars’ across the board in all three categories; both got four stars for frontal ratings.

Stricter Test Norms Under the old tests, the 2010 Nissan Versa got four stars across all three tests; the 2011 model got an overall two-star rating. Nissan spokesman Scott Vazin emphasised, ‘because testing guidelines are stricter, 2011 model ratings are not comparable to 1990-2010 vehicles.’ He said the compact Versa has performed well in real world crashes and provides its customers with good real-world safety protection. ‘Nonetheless, we will study NHTSA’s test results and take the appropriate action to ensure we deliver a high-level of real-world safety,’ he said. Similarly, the 2010 Toyota Camry had received five stars for frontal and side tests, while the 2011 Camry got three stars on both categories, under the tougher tests. ‘Even though star ratings may go down on certain vehicles the new star ratings do not mean that the vehicles are less safe,’ said Toyota spokesman Brian Lyons adding that the Government raised the bar by changing the test procedures. If the next batch of results are in line with the fi rst, they are likely to bring a sigh of relief from automakers, who were worried that many models would get two or three stars and crimp sales.

Many More To Go There still are many vehicles to test. Only one Chrysler model – its new Jeep Grand Cherokee – and just two Toyota models were tested. NHTSA tested just one BMW and one Nissan. But the new ratings may still make it

Contd. on P49

16 - 31 October 2010

Auto Monitor

GLOBAL WATCH

Nissan uses tiny island as test site N

issan is bringing some of its newest technology to a small, misty island in the East China Sea that shelters some of Japan’s oldest trees, according to a report in the Detroit News. In a joint project with Kagoshima Prefecture in southern Japan, Nissan has agreed to supply zero-emission electric cars and identify sites for charging outlets on the island of Yakushima. Less than 20 miles across, the island is a UN world heritage site famed for its massive cedars, some of them more than 2,000 years old. The project is expected to help engineers and officials develop models to establish clean transportation on islands, which have particularly delicate eco-systems. Eiji Makino, a Nissan executive working on the Yakushima project, met in August with officials from the State of Hawaii to discuss ways to promote electric cars. Hawaii has set aside $3 million to develop a charging infrastructure, and Nissan will start selling its battery-powered Leaf in Hawaii early next year. Makino and the State officials discussed the Yakushima project and proposals under consideration for Okinawa, a

Hyundai Sonata, BMW 5 Series ... Contd. from P48 difficult for customers to differentiate between vehicles since nearly everyone received four stars. And as many as 40 percent of 2011 models will be listed as ‘not rated’ in the fi rst year, because NHTSA tests a limited number of models. ‘We’re at a point in time when we’re seeing record-setting safety levels when it comes to auto travel,’ said CEO, Alliance of Automobile Manufacturers, Dave McCurdy. ‘The new ‘Stars on Cars’ rating system will now reflect our advancements even better. But, since the tests are getting more challenging, many ratings may go down at fi rst – even when a model hasn’t changed.’ NHTSA will unveil the results of another 20 tests of 2011 models later. The upgraded ratings system evaluates side pole crash testing and crash prevention-technologies. And, for the fi rst time, it will use female crash test dummies to simulate crash scenarios involving women, not just men. For model year 2011, NHTSA will rate 24 passenger cars, 20 sport utility vehicles, two vans and nine pickups under the new ratings system. ‘We want consumers to embrace these new safety technologies as a way to make vehicles safer,’ said NHTSA Administrator, David Strickland. NHTSA recommends consumers consider vehicles with crash avoidance technologies like forward collision warning, lane departure warning, and electronic stability control (ESC). All of the 2011 model year vehicles currently rated has ESC as standard, except for the Nissan Versa, in which it is optional. The anti-rollover technology ESC must be standard on all vehicles by the 2012 model year, under a 2007 Federal regulation.

Japanese island administered by the United States for nearly 30 years after World War II. The Yakushima project, while small, serves as a good test environment for Nissan, and it will benefit the island. Vehicles are the main source of pollution on Yakushima, which has no industry. Fewer than 14,000 people live on the island, but it receives a heavy influx of tourists, peaking at 40,000 a month in the summer. They rent cars – nearly 500 are available – and they also bring their own cars aboard ferries. Drenched year-round by rains, Yakushima already generates nearly all of its electricity from clean hydro power. The Japanese and Kagoshima governments are preparing to offer generous incentives totalling $16,000 per vehicle, and the prefecture will subsidise the cost

to build charging stations. Nissan won’t install them but is helping to identify where they’ll be needed, and what type. Slow-charging outlets would be appropriate for hotels, where drivers could recharge the batteries overnight, while popular tourist sites would need fast-charging stations. Yakushima’s sub-tropical climate is ideal for batteries, which

perform better in warm weat her than cold. But the hilly topography poses a challenge for Nissan. Most electric vehicles’ range estimates assume the car is riding along flat roads, but tourists in Yakushima will be motoring uphill toward the mountainous centre of the island, rising more than 6,000 feet above sea level.

Nissan is working to improve its ability to calculate the remaining driving distance under a variety of conditions, including uneven terrain and traffic jams, which also reduce the driving range. The ability to produce accurate range estimates is crucial for automakers seeking to massmarket electric cars. Customers will be expecting a system as reliable as today’s fuel-tank gauges. Starting next year, Nissan plans to add the Leaf and future electric cars to the island’s rental fleet of 497 vehicles. The company is asking local officials to stoke demand for electric cars by allowing them to use roads now restricted to bus and taxi traffic. It’s also proposing special-entry privileges for electric cars to popular sites, ahead of drivers of gas-powered cars, the report stated.

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Sellowrap Manufacturing wins laurels at the annual ACMA convention

flagship company of the SK group that develops and manufactures high -

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Auto Monitor

GLOBAL WATCH

16 - 31 October 2010

BMW plans electric ‘Megacity’ car Honda unveils Fit

arly next decade, BMW, North America plans to sell an electric ‘Megacity car’ as a sub-brand of BMW, similar to the brand’s highperformance M-series cars, according to a report on MSN Auto. The company is already preparing for that launch. Its yearlong trial with the Mini E electric car has opened the auto marketer’s eyes to the maze of regulations facing plug-in electric cars, the report noted. ‘We are learning a heck of a lot just about the sheer infrastructure,’ said Chief Executive Officer, BMW, North America, Jim O’Donnell. ‘When we bring out another electric car, we will be in a great position because we know all the wrinkles.’ BMW has 450 Mini E electric cars running in a yearlong trial

in metropolitan New York, New Jersey and Los Angeles. But after more than six months of addressing regulatory hurdles, Mini has yet to get approval to install more than 30 additional fastcharge boxes in New Jersey. With a 240-volt box, the Mini E can be recharged in three hours rather than the 21 hours needed using 110-volt power. ‘If you are in a house with a normal supply and you want to bring a 240-volt (charger), you have to have an agreement from the power utility,’ O’Donnell said.

‘New Jersey is the most difficult because there are so many local authorities.’ A n inspector from each municipality has to approve the installation to make sure it complies with local codes. The cost of the box ranges from $1,500 to $1,800. The box had to be approved by Underwriters Laboratories. What O’Donnell calls ‘the New Jersey problem’ is compounded because ‘all the components are certified, but they say the system isn’t certified’. A BMW spokesman said the Mini E experience is a prelude to a more widespread launch of electric vehicles. ‘We are dealing with only three metropolitan areas of the United States,’ he said. ‘Think about when you start to build the national network and all those local codes.’

subcompact hybrid

onda plans to sell the hybrid version of its popular Fit subcompact for ¥1.59 million ($19,310) in Japan, making it the cheapest gasoline-electric car in the domestic market. The company expects to sell about 5,600 units a month. Competition in the hybrid segment is set to heat up as industry leader Toyota Motor works to expand its lineup to meet growing demand for fuel-efficient cars from drivers around the world. Toyota had earlier said that it would produce a small hybrid model at its factor y in France from 2012. Honda needs the Fit hybrid to succeed after its last gas-electric model, the Insight, lost out to the third-generation Prius, which a top Honda executive admitted recently was an all-around better product than the Insight. After becoming the top-selling model in Japan in April last year, the Insight has mostly fallen below 20th place in domestic car rankings, excluding 660 cc microcars and despite generous tax breaks on hybrids.

Fit Line-up But Chief Executive Officer, Honda Motor, Takanobu Ito brushed off the competition with Prius, the top selling car in Japan for the past 17 months. ‘They are totally different cars. Their price ranges are different and they look different. So I don’t consider the Prius as the Fit’s direct competitor,’ Ito told reporters. ‘We just want many more people to own the Fit by expanding our line-up.’ The Fit hybrid gets 30 kmpl (70.6 mpg) under Japanese testing methods – equal to the Insight’s mileage – while keeping its signature spacious cabin that has made the gasoline version Fit a perennial top seller. The gasoline-only version, which underwent a partial remodelling, gets 24.5 kmpl. With the electric motor assisting the 1.3-litre engine, the Fit hybrid gets performance equivalent to a 1.5-litre car, Honda said. It said it has already received pre-orders for about 10,000 Fit hybrids. Honda plans to launch the car in Europe next year. It is also considering selling the Fit hybrid in the United States but said it has not yet decided on the timing of a launch.

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16 - 31 October 2010

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Auto Monitor

GLOBAL WATCH

16 - 31 October 2010

International auto round-up EUROPE Renault sells large part of AB Volvo holdings Renault recently announced the sale of a large part of its 21.7 percent stake in Swedish truck maker AB Volvo, cutting it to 6.8 percent. Renault said the proceeds from the private share placement to institutional investors would help reduce its net debt by a third, to less than $4.1 billion. Renault previously said it didn’t consider its Volvo stake a strategic holding.

Lotus unveils the new Elite Lotus Cars is in the process of fi ne tuning its new Elite — a V8-powered, folding-hardtop grand tourer with an optional hybrid powertrain that Lotus said will go on sale in 2014. The Lotus Elite gets a public debut at this year’s Paris Motor Show. Under the hood of the 2+2 Elite is a 5.0-litre gasoline V8, rated at 612 horsepower and 531 lb-ft of torque driving the rear wheels. The engine has an 8,500-rpm limit and will push the car from 0 to 62 mph in 3.5 seconds to 3.7 seconds, Lotus said. Production of the Lotus Elite will start in early 2014. It put an expected retail price of £115,000, or about $179,000 at current exchange rates, on the car.

France auto workers protest low pay French auto industry workers have poured out in the thousands across the country to protest low pay and tough working conditions, the Press TV reported. The protesters even managed to disrupt the International Paris Motor Show. The auto industry workers are protesting that their wages fail to meet the rising cost of living and pressure is mounting at the workplace. They have also expressed anger about the country’s increased retirement age. According to French unions, the country’s leading automakers have slashed their workforce over the past five years, shedding more than 17,000 jobs.

UK September new car sales down 8.9 percent The UK passenger car market contracted by 8.9 percent in September this year to 335,246 units, following withdrawal of scrappage incentives that had helped the UK auto industry account for 367,929 cars in September 2009. Excluding the influence of the scrappage incentive, car registrations last month were ahead year-on-year by 16.3 percent. The number of cars registered was also on par with 2008 levels, the Society of Motor Manufacturers and Traders (SMMT) said. Registrations in the fi rst three quarters of 2010 totalled 1,635,659 units, 7.8 percent ahead of 1,517,039 cars registered in the UK in the corresponding nine-month period a year earlier.

French auto production seen stable in 2011 French automobile production is likely to continue growing in the second half of this year but at a slower pace than in the fi rst six months and should level off in 2011 at around between 2.1-2.2 million vehicles, the French automotive suppliers’ industry group said recently. Production this year is likely to total 2.2 million vehicles, or between five to seven percent more than in 2009, the president of the FIEV association, Claude Cham told a press conference. That is slightly above the average annual pace of around two million vehicles that has been observed in France, a mature market in which sales are chiefly replacement vehicles, Dow Jones reported.

JLR research base to set up at University of Warwick The University of Warwick – home of Warwick Manufacturing Group – has won the latest round in the battle for research supremacy in the region after Jaguar Land Rover announced it would be the new home for its advanced research group. The luxury carmaker – owned by Indian conglomerate Tata Motors – plans to spend £100 million on research at the International Digital Laboratory, which is part of WMG. The company already has 30 engineers and designers at the lab and will move another 140 from its research base at Gaydon. The Coventry operation is set to be headed up by Clive Hickman – the former head of Tata’s Technology Centre at the University of Warwick which is separate to WMG.

Volkswagen to increase production in Germany Volkswagen AG will expand vehicle and component production at its German factories in Wolfsburg and Kassel, Stuttgarter Zeitung reported, without citing anyone. The German carmaker will increase daily output of the Tiguan compact sports utility vehicle in Wolfsburg to 1,000 units next year from the current 750 units, and build more two-way shift gearboxes at the Kassel plant, the newspaper said. Wolfsburg-based Volkswagen, aiming to surpass Toyota Motor in sales and profitability, has a goal to increase global deliveries to 10 million by 2018.

AMERICAS US investors sue Toyota for not disclosing defects A class-action lawsuit by US investors has accused Toyota of violating securities law by failing to disclose acceleration-related defects it knew about. The shareholders, led by the Maryland State Retirement and Pension System, said in a fi ling in federal court in Los Angeles that internal documents show Toyota knew about the defects, which eventually erased $30 billion in market capitalisation.

Daimler brings hydrogen fuel-cell cars to California Daimler AG has begun taking orders for a Mercedes-Benz hydrogen fuel-cell car that it will lease to customers in California, the latest in a wave of alternative-fuel vehicles coming to the United States. The monthly lease may be $600 to $800 including fuel. Offers will be limited to drivers in the Los Angeles and the San Francisco areas.

US announces tougher auto safety rating system The US Transportation Department has unveiled a new safety rating system that makes it more difficult for new cars and trucks to earn top scores. Besides adding tougher tests to the mix, the annual evaluation of new vehicles adds a new measure: the impact of collisions on drivers and passengers – using female crash test dummies for the fi rst time. In the interest of driver safety, the National Highway Traffic and Safety Administration (NHTSA) has added new tests to evaluate side pole impacts. Transportation Secretary Ray Lahood said they’re looking at the effect of high-speed collisions on smaller crash test dummies.

GM recalling 2010 Cadillac SRX models General Motors is recalling 3,996 2010 Cadillac SRX crossovers worldwide over concerns of possible damage to the power steering line. GM said in a statement that based on its analysis, the problem is believed to exist in only two or three of the recalled vehicles. ‘If the line is damaged, power steering fluid could leak, and if the fluid sprays onto hot engine parts, an engine compartment fi re could result,’ GM said. GM is aware of one fi re in an unattended SRX related to this condition. There have been no related crashes or injuries. The majority of the vehicles — 3,460 — are in the United States. There were 341 vehicles exported to China. The power steering line is a Koreanmade part. The recall affects vehicles built over a 19-day period in December last year.

Canadian vehicle sales rise slightly in September Canadian vehicles sales rose slightly in September as the end of consumer incentives took their toll on some automakers and hefty truck sales boosted others. Last month, 135,098 light vehicles were sold in Canada resulting in a gain of 4.3 percent from a year earlier, according to data compiled by DesRosiers Automotive Consultants. Light trucks, including sport utility vehicles and pickup trucks, fared better than their smaller counterparts, with sales up 21.6 percent to 75,442. Meanwhile, passenger car sales dropped 11.6 percent to 59,656. Higher incentives from most automakers have been keeping prices low, pushing consumers into bigger and more expensive vehicles. Sales of pickup trucks, SUVs and crossovers have soared in recent months as customers upgraded their purchases and businesses restocked their fleets, The Canadian Press noted.

Anfavea expects 2010 Brazil exports up at 750,000 units Brazil’s auto industry will see a major rebound in exports in 2010 as overseas demand rises for unassembled vehicles, Dow Jones quoted the president of the country’s motor vehicle manufacturers association, Anfavea, as saying. National Motor Vehicle Manufacturers Association President Cledorvino Belini forecast 2010 exports of 750,000 vehicles for receipts of $12.8 billion. ‘Economies overseas are recovering and they are absorbing more unassembled vehicles from Brazil,’ Belini said at a news conference. The 750,000 figure includes both assembled and unassembled vehicle exports. Reflecting the global credit crunch and recession, Brazilian exports of all motor vehicles in 2009 were only 475,000 for receipts of $8.3 billion.

Detroit’s automakers reclaiming market share Detroit’s automakers have been losing ground in their home market since 1996, but they’re halting that trend this year at the expense of their Japanese rivals, the Detroit News has reported. This year, Ford’s market share is up 1.5 points, to 16.7 percent from 15.2 percent in the fi rst nine months of 2009, while Toyota’s share has fallen to 15.2 percent from 16.6 percent over the same period. General Motors’s share has dipped to 19 percent from 19.6 percent after it shed or eliminated four brands as part of its restructuring under bankruptcy. And Chrysler’s share has edged up to 9.5 percent from 9.2 percent, helped by the successful launch of an all-new Jeep Grand Cherokee SUV.

ASIA Toshiba to develop EV batteries with Fiat, Scania

Toyota’s Prius hybrid remains Japan’s top-selling car

In a move designed to expand its business for auto batteries, Japanese electronics manufacturer Toshiba will team up with Fiat’s research headquarters in Italy and with Scania, the Swedish commercial-vehicle unit of Volkswagen AG to jointly develop lithium-ion batteries for hybrid vehicles. Toshiba is currently co-developing batteries and other automotive components with Mitsubishi Motors and Volkswagen. Production at Toshiba’s new plant, its fi rst mass-production base for lithium-ion batteries, is due to begin next February, ‘but I’ve ordered the start date to be brought forward,’ said President, Toshiba, Norio Sasaki. Initially, the plant would produce 500,000 units a month, which will be doubled to one million units through FY11. Toshiba aims for the batteries to generate ¥200 billion in sales in FY15, capturing at least 10 percent of the global market.

Toyota Motor’s Prius hybrid was the best-selling car in Japan in September, even as Government subsidies for fuel-efficient models ended, Bloomberg reported. While Prius sales fell 14 percent from a year earlier to 27,249 vehicles last month, the model outsold Daihatsu Motor’s 18,583 deliveries of the Tanto minicar, according to statements from the Japan Automobile Dealers Association and Japan Mini Vehicles Association. The Prius has been the nation’s top-selling car since June 2009. Industry-wide car sales in Japan may plunge 23 percent in the six months started 1 October from a year earlier, after a Government subsidy for fuel-efficient cars ended on 8 September this year, according to the auto dealers group.

Mitsubishi starts EV production at Mizushima plant

Japanese automakers, such as Toyota Motor and Nissan Motor will step up procurement of lower-priced auto parts made in South Korea to stem increasing costs from the recent stronger yen, the Yomiuri Shimbun reported. A report by Dow Jones stated that Japanese carmakers have traditionally relied on auto parts maker affi liates at home, but the move to procure components abroad may accelerate amid growing needs to boost their cost performance. It will also likely hurt small and medium-sized domestic parts makers and possibly lead to job losses in the industry. In an event hosted by both the Japanese and South Korean governments, the companies are likely to negotiate with major South Korean parts makers on the procurement of components such as air conditioners and brakes.

Mitsubishi has started the production of its European-spec i-MiEV electric vehicle (EV) along with the manufacturing of PSA Peugeot Citroen’s Peugeot iOn and Citroen C-Zero at its Mizushima plant. Exports are likely to begin soon. The company has customised the Japanese version of i-MiEV to better suit European requirements, including a different front and rear bumper design, added safety features such as Active Stability Control (ASC) system, new gear selection and new left-hand-drive dashboard. Mitsubishi plans to sell 5,000 i-MiEVs, including models built for PSA in FY10 in Europe in 14 countries including France, the UK, and Germany. From FY11, the company sequentially plans to expand the countries it will be sold in.

Japan automakers to procure parts made in South Korea

Auto Monitor

Product ............................................................ pg no. 3d coordinate measuring machine ............................7 Acc. Padel sensor assy. ...............................................43 ADEA-automotive dealership excellence awards .......46 Air chiller ....................................................................27 Aluminium endmills...................................................22 Analytical instruments ...............................................18 As-interface systems...................................................37 Auto parts ..................................................................19 Auto Serve 2010 .........................................................50 Automatic painting system ........................................16 Automation ................................................................24 Automation & storage system ....................................37 Automotive electrical components ............................39 Axles ...........................................................................19 Bolts ...........................................................................19 Brake linings ..............................................................9 Building automation ..................................................24 Burs ............................................................................22 Cables for bus systems ...............................................37 Cables handling & processing systems .......................37 Cables scanps .............................................................37 Cad/cam .....................................................................23 Capacitive and magnetic sensors ...............................37 Car paints ...................................................................8 Car polish ...................................................................8 Carbide burrs .............................................................22 Carbide routhing endmills .........................................22 Carbide tools ..............................................................22 Ced coating machines ................................................24 Ced/ktl coatings .........................................................34 Chemical etching........................................................41 Chemlok coating machines ........................................24 CNC .............................................................................47 CNC cutting machines ................................................24 CNC hmcs ...................................................................47 CNC laser cutting machines........................................24 CNC lathes ..................................................................BC CNC machines ............................................................31,47 CNC oval turning centers ............................................47 CNC oxy fuel cutting machines...................................24 CNC plasma cutting machines ....................................24 CNC turn mill centers .................................................47 CNC turning center .....................................................47 CNC vertical machining center ...................................47 CNC/vmc machines.....................................................13 Coating machines .......................................................24 Coating plants ............................................................24 Coating qquipment ....................................................26 Coating systems ..........................................................24 Cold form c & z purlins...............................................45 Combined drills & countersinks .................................22 Commercial vehicles ..................................................46 Compact chiller ..........................................................27 Compaction & concreting equipment. .......................57 Compression springs ..................................................3 Connectors accessories ..............................................37 Control cables ............................................................55 Countersinks ..............................................................22,BIC Crimp contact & tools ................................................37 Custom-made cables ..................................................37 Cutting machines .......................................................24 Cutting tools ...............................................................53 Cylindrical grinders ....................................................BC Data cables.................................................................37 Deburring & superﬁnishing........................................20 Decimal endmills .......................................................22 Dehumidiﬁed air dryer ..............................................27 Diamond tools............................................................BIC Die casting dies ..........................................................15 Diesel engines (10-1000hp) ........................................57 Diesel/kerosene engines. Power sprayer....................57 Dip spin coating machines .........................................24 Dollies ........................................................................6 Drilling tools...............................................................BIC Drills ...........................................................................22 E-coatings solutions ...................................................34 Egr valve .....................................................................43

PRODUCT INDEX Electronic control unit ...............................................43 Engine valves..............................................................9 Engineering expo .......................................................1,42,44,58,59 Etc. .............................................................................9 Ex series .....................................................................47 Exhibition - hi tech manufacturing show...................36 Extension springs .......................................................3 Factory automation....................................................24 Flexible shafts ............................................................55 Fluidized bed coating machines. ...............................24 Foam & plastic moulded components .......................51 Foldable large container ............................................6 Foldable small crates .................................................6 Form&cylindercity testers ..........................................7 Front axles..................................................................19 Gear shift mechanism ................................................55 Glide coating machines ..............................................24 Granulator ..................................................................27 Grinder .......................................................................27 Grippers......................................................................17 Gun drills ....................................................................BIC Heat exchanger machines ..........................................31 Heavy industrial steel builings ...................................45 High performance drills .............................................22 High performance endmills .......................................22 Hollow bars ................................................................25 Hopper dryer..............................................................27 Hopper loader ............................................................27 Horizontal CNC machines...........................................47 Horizontal machining center .....................................31,47 Hot, Cold & warm forged machined parts .................39 Ic engine valves ..........................................................39 Identiﬁcation systems ................................................37 Imaging & vision systems ...........................................24 Inductive ....................................................................37 Industrail connectors .................................................37 Industrial metrology ..................................................7 Industrial state directory ...........................................48 Insolvency auctions–manufacturing equipment .......12 Instrumentation made cables ....................................37 Jobber length drills ....................................................22 Kx series .....................................................................47 Kxg series ...................................................................47 Lathe machines ..........................................................31 Lightweight diesel engines .........................................57 Lightweight petrol......................................................57 Machinery steel ..........................................................11 Machines for grinding ................................................20 Manufacturers of auto component and processors ...51 Materials handling solutions ......................................6 Metal cutting tools .....................................................49 Metric endmills ..........................................................22 Milling cutters ............................................................BIC Modular tooling system .............................................BIC Mould temperature controller ...................................27 Multi gauging systems ................................................7 Multi level car parks...................................................45 Mx series ....................................................................47 N/c spotting drills .......................................................22 Nuts ............................................................................19 Nx series .....................................................................47 Opto-electropnic systems...........................................7 Paint circulation system .............................................16 Paint pumps ...............................................................16 Paint shop equipments ..............................................24 Paint shop machines ..................................................24 Pallets ........................................................................6 Parking brake assemblies ..........................................55 Photoelectric sensors .................................................37 Plastic moulded components ....................................39 Pneumatics & hydraulics-cylinders............................17 Polishing.....................................................................20 Poly carbonate sheets ................................................45 Polymer conveyer belt ...............................................27 Powder coating system ..............................................16 Power chucking cylinders ..........................................BC Power steering systems ..............................................9 Power tiller .................................................................57

16 - 31 October 2010

Pre engineered steel builings.....................................45 Pre fab shelters ..........................................................45 Pre tereatment systems..............................................24 Press tools ..................................................................15 Pressure regulators ....................................................17 Protective-conduit system .........................................37 Pumpsets and power reapers ....................................57 Push pull cables .........................................................55 Quality steel ...............................................................11 Reamers .....................................................................BIC Rear axles ...................................................................19 Research & certification .............................................29 Residential steel houses .............................................45 Robot system..............................................................27 Roof vent ....................................................................45 Roofing & cladding sheets..........................................45 Rotary encoders .........................................................37 Roundness ..................................................................7 Roundness / cylindricity measuring system. ..............30 Rubber parts for automobile industry .......................38 Scada & dcs implimentaion .......................................24 Sealer dispensing system ...........................................16 Seat assemblies ..........................................................39 Seat belt systems ........................................................9 Self adhesive tapes .....................................................54 Sensors .......................................................................37 Smart logistics leadership series ................................32 Solenoid valves ..........................................................17 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 Spade drills.................................................................22 Special purpose machine ...........................................15 Spirac cables ..............................................................37 Spm’s machines ..........................................................31 Spray guns ..................................................................16 Spray painting equipment .........................................8 Stack nest crates.........................................................6 Stackable crates .........................................................6 Standard endmills ......................................................22 Straight flute drills......................................................22 Strip steel ...................................................................11 Structural floor decking sheets ..................................45 Stub length drills ........................................................22 Surface & contour measuring system ........................30 Sx series ......................................................................47 Taps ............................................................................BIC Tescomfuel pressure regulators & hamlet fittings .....40 Texturing ....................................................................41 Tool bits .....................................................................11 Tool steel ....................................................................11 Torsion springs ...........................................................3 Truck tyres..................................................................21 Turning machine solutions.........................................33 Turrets ........................................................................BC Two wheeler tyres ......................................................21 Tyre chanding accessories ..........................................54 Tyre repair tools .........................................................54 Tyre service tools ........................................................54 Tyres ...........................................................................21,35 Ultrasonic sensors ......................................................37 Uss univent .................................................................45 Vaccum pump ............................................................43 Vehicle interiors .........................................................FIC Ventilators ..................................................................54 Vertical line series ......................................................47 Vertical machining center ..........................................31 Vertical machining centers.........................................BC Vmc-linear series ........................................................47 Vse flowmeters ...........................................................4 Wheel alignment accessories .....................................54 Wheel balancing accessories ......................................54 Wire forms ..................................................................3

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Ferromatik Milacron India Ltd ..........................................+91-79-25890081 ..................salesfmi@milacron.com ..................................www.milacronindia.com 49 ............ G W Precision Tools India Pvt Ltd ......................................+91-80-40431252 ..................info@gwindia.in ..............................................www.gwindia.in 15 ............ Godrej & Boyce Mfg. Co. Ltd. .............................................+91-22-67962757 ..................menon@godrej.com ........................................www.godrejtoolings.com 57 ............ Greaves Cotton Limited .....................................................+91-22-24397575 ...................rrao@greavesmail.com ...................................www.greavescotton.com 20 ............ Grind Master Machines Pvt Ltd .........................................+91-9822029958 ...................sales@grindmaster.co.in .................................www.grindmaster.co.in 19 ............ 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 36 ............ Hitech Manufacturing Show ..............................................+91-9820373804 ...................hitech@infomedia18.in FIC ........... IAC International Automotive India Pvt Ltd ......................+91-20-66538500 29 ............ ICAT ...................................................................................+91-124-4586111 ...................pawan.thakur@icat.in .....................................www.icat.in 25 ............ ISMT Limited .....................................................................+91-20-66024901 ..................sachin.joshi@ismt.co.in ...................................www.ismt.com 35 ............ Jk Tyre & Industries Ltd. ....................................................+91-11-23311112 ....................anilgupta@jkmail.com ....................................www.jktyre.com 47 ............ Jyoti CNC Automation ........................................................+91-2827-287081...................info@jyoti.co.in ...............................................www.jyoti.co.in 34 ............ Kamal Envirotech ..............................................................+91-124-4367305...................enquiry@giaatech.com ...................................www.giaatech.com 53 ............ Larsen & Toubro Ltd. .........................................................+91-22-67051093 ...................smh-inp@powai.ltindia.com ...........................www.larsentoubro.com 3 .............. M And M Auto Indus Ltd ....................................................+91-124-4763200 ...................corporate@mandmsprings.com ......................www.mandmsprings.com 26 ............ M+V Marketing & Sales Pvt. Ltd. .......................................+91-124-4121600 ...................info@wagner-group.in ....................................www.wagner-group.in 30 ............ Mahr Metrology.................................................................+91-44-42170531 .................r.ganesan@mahr.com .....................................www.mahr.com 33 ............ Meiban Engineering Technologies Pvt ..............................+91-80-26491229 ..................sales-turning@meibanengg.com ..................... BC ............ Micromatic Machine Tools.................................................+91-80-41492285 ..................mmtblr@acemicromatic.com..........................www.acemicromatic.com 45 ............ Ningbo Elite Mold Manufacture Co.,Ltd ............................+86-574-8614-8158 ...............tracy@cmmould.com.cn .................................www.elitemould.cc 43 ............ Padmini VNA Mechatronics Pvt. Ltd..................................+91-124-3207398 ...................sales@padminiengg.com ................................www.padminivna.com 16 ............ Patvin Engineering (P) Ltd .................................................+91-22-27780310 ...................patvin@patvin.co.in ........................................www.patvin.co.in 37 ............ Pepperl+Fuchs(India) Pvt Ltd. ...........................................+91-80-28378030 ..................info@in.pepperl-fuchs.com .............................www.pepperl-fuchs.com 12 ............ Perlick & Partner Gmbh Industrieauktionen ....................+49-6174-201-60-0 ................straten@perlick.de ..........................................www.perlick.de 9 .............. Rane Holdings Limited ......................................................+91-44-28112472...................s.vinoth@rane.co.in.........................................www.rane.co.in 55 ............ Remsons Industries Ltd .....................................................+91-22-28684452 ..................remsons@vsnl.com .........................................www.remsons.com 8 .............. Rohan Standox Autolack ...................................................+91-22-65803331...................sales@spraytec.net..........................................www.spraytec.net 54 ............ 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 51 ............ Sellowrap India Pvt Ltd .....................................................+91-22-66750560 ..................contact@sellowrap.com ..................................www.sellowrap.com 38 ............ Selvel Auto Traders ............................................................+91-130-2243148 ...................senior@ndf.vsnl.net.in ....................................www.senior-rubbers.com 40 ............ Shavo Technologies Pvt Ltd ...............................................+91-20-26059641...................shavogroup@vsnl.com ....................................www.shavogroup.com 18 ............ Shimadzu Analytical (I) Pvt. Ltd ........................................+91-22-29204741 ...................rajnish@shimadzu.in ......................................www.shimadzu.com 23 ............ Siemens Product Lifecycle Managemen ............................+91-124-4092244...................sundaram.mallik@ugs.com .............................www.siemens.com/plm 32 ............ Smart Logistics Leadership Series .....................................+91-22-30034650...................prachi.mutha@infomedia18.in 54 ............ Sreelakshmi Traders ..........................................................+91-44-24343343...................sreelakshmitraders@gmail.com ......................www.sreelakshmitraders.com 46 ............ Tata Motors Ltd. ................................................................+91-22-66561820............................................................................................www.prima.tatamotors.com 45 ............ United Steel & Structurals Pvt. Ltd ....................................+91-44-42321801 ..................admin@unitedstructurals.com........................www.unitedstructurals.com 39 ............ Varroc Engineering Pvt Ltd................................................+91-240-2556227...................varroc.info@varrocgroup.com ........................www.varrocgroup.com 28 ........... Web 18 Software Services Ltd. ...................................................................................................................................................................http://ibnlive.in.com/siemensecovatives 13 ............ Yamazaki Mazak India Pvt Ltd ..........................................+91-20-27351417 ...................sudhir_patankar@mazakindia.com ................www.mazak.com 48 ............ Yellow Pages......................................................................+91-22-30245000...................yellowpages@infomedia18.in..........................www.infomedia18.in Q Our consistent advertisers

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Auto Monitor

16 - 31 October 2010

N AMERICAN ASSEMBLY

AUTOFACTS Global Automotive Outlook, 2009 Q1 Release PricewaterhouseCoopers LLP

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

Last 3 Months

Ownership Org/ Brand & Nameplate

Volume

YOY % Chg

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

8,814 5,015 3,799 15,314 10,598 4,716 157,806 3,676 6,084 13,585 6,074 5,827 18,285 5,150 10,668 2,145 14,934 3,564 3,312 18,477 5,626 6,426 3,423 4,511 26,039 13,181 1,565 2,640 7,392 1,584 203,201 4,482 11,929 9,437 25,595 5,379 3,766 513 9,141 2,627 18,345 57,044 26,138 2,448 8,674 38 1,542 296 1,665 1,916 1,107 1,342 738 3,399 2,976 2,013 651 24,192 15,577 264 8,351 264,635 6,715 6,769 4,112 1,038 4,656

-100.0% -100.0% -18.3% -19.5% -16.6% 52.6% 63.4% 32.8% -100.0% -100.0% -100.0% 50.8% -10.4% -100.0% 485.6% 59.5% 201.7% 53.5% 6.0% 45.5% 103.4% 44.7% 67.0% 97.6% -100.0% -100.0% -100.0% 27.2% 238.8% 45.6% 31.8% -30.6% -36.4% -100.0% 22.1% -100.0% 220.7% 28.5% 23.1% 43.2% 47.1% 308.9% 92.8% 83.5% 69.3% 22.8% -26.0% -26.1% 16.5% -7.0% 34.3% 58.5% -57.6% 140.1% -44.9% 43.0% 41.6% 49.6% 11.4% 361.2% -100.0% -22.2% 213.9% 115.8% 62.2% 27.4% 45.4% 71.4% 44.3% 13.4% 45.2% 57.0% 120.9% 98.5% 40.4%

Assembly Share % 0.8% 0.5% 0.3% 1.4% 1.0% 0.4% 14.4% 0.3% 0.6% 1.2% 0.6% 0.5% 1.7% 0.5% 1.0% 0.2% 1.4% 0.3% 0.3% 1.7% 0.5% 0.6% 0.3% 0.4% 2.4% 1.2% 0.1% 0.2% 0.7% 0.1% 18.5% 0.4% 1.1% 0.9% 2.3% 0.5% 0.3% 0.0% 0.8% 0.2% 1.7% 5.2% 2.4% 0.2% 0.8% 0.0% 0.1% 0.0% 0.2% 0.2% 0.1% 0.1% 0.1% 0.3% 0.3% 0.2% 0.1% 2.2% 1.4% 0.0% 0.8% 24.2% 0.6% 0.6% 0.4% 0.1% 0.4%

YOY Share Chg (-0.0) (-0.0) (-0.5) (-0.3) (-0.2) 0.2 0.2 (-0.0) (-1.3) (-1.1) (-0.3) 1.5 (-0.2) (-0.1) 0.4 0.2 0.3 0.1 (-0.5) 0.0 0.3 0.0 0.3 0.1 (-2.1) (-0.0) (-0.1) (-0.0) 1.0 0.0 (-0.0) (-0.3) (-0.5) 2.4 (-0.0) (-0.1) (-0.1) 0.1 (-0.0) (-0.1) 0.0 1.6 0.3 0.3 0.2 0.5 (-0.0) (-0.3) (-0.0) 0.8 (-0.0) (-0.8) (-0.0) 0.4 (-0.5) 0.3 (-0.0) 0.0 0.0 0.0 0.0 (-0.0) 0.1 (-0.0) (-0.0) 0.2 0.1 0.0 (-0.0) 0.2 0.3 0.0 (-0.1) 1.8 0.1 0.2 0.1 0.1 0.0

Volume 335 335 29,641 20,297 9,344 38,674 26,186 12,488 404,247 9,205 3,258 12,627 36,214 15,573 16,768 42,794 11,049 25,074 4,987 35,605 6,957 176 9,192 34,616 15,902 18,320 14,948 20,563 69,366 1,053 33,478 3,910 6,720 18,816 4,032 572,319 10,813 29,416 30,946 64,521 13,890 14,634 1,995 27,612 10,066 58,880 162,991 66,798 16,682 20,126 205 3,175 752 5,614 4,472 2,884 2,721 512 1,255 8,326 7,432 4,289 1,312 59,328 37,388 854 21,086 729,840 19,952 19,682 10,598 2,767 13,467

Year to Date YOY % Chg 385.5% 385.5% -5.7% -12.8% 14.8% 31.0% 31.5% 30.0% -100.0% -100.0% -100.0% -100.0% -100.0% 149.8% 36.8% -5.3% 504.7% 190.9% 301.6% 258.1% 61.0% 111.2% 257.9% 106.0% 132.2% 245.4% -100.0% 175.0% -100.0% 204.7% 412.4% 238.2% 239.1% 85.7% 82.2% 35000.0% 40.9% -100.0% 206.2% 53.8% 47.4% 71.4% 33.5% 64.9% 40.5% 24.3% 22.6% 19.6% 2.9% 2.9% 24.1% 57.4% 22.0% 24.4% -1.2% 120.9% -14.9% 5.7% 0.1% -0.8% 9.2% 19.9% 687.7% -29.9% 96.4% 31.1% -24.9% -4.8% 44.3% 77.2% 290.0% 6.4% 110.7% 59.0% 349.4% 411.5% 117.9%

Assembly Share % 0.0% 0.0% 1.0% 0.7% 0.3% 1.3% 0.9% 0.4% 13.4% 0.3% 0.1% 0.4% 1.2% 0.5% 0.6% 1.4% 0.4% 0.8% 0.2% 1.2% 0.2% 0.0% 0.3% 1.2% 0.5% 0.6% 0.5% 0.7% 2.3% 0.0% 1.1% 0.1% 0.2% 0.6% 0.1% 19.0% 0.4% 1.0% 1.0% 2.1% 0.5% 0.5% 0.1% 0.9% 0.3% 2.0% 5.4% 2.2% 0.6% 0.7% 0.0% 0.1% 0.0% 0.2% 0.1% 0.1% 0.1% 0.0% 0.0% 0.3% 0.2% 0.1% 0.0% 2.0% 1.2% 0.0% 0.7% 24.3% 0.7% 0.7% 0.4% 0.1% 0.4%

YOY Share Chg 0.0 0.0 (-0.6) (-0.5) (-0.1) (-0.2) (-0.1) (-0.1) (-1.4) (-1.3) (-0.1) (-0.0) (-0.0) 5.2 (-0.0) (-0.1) 0.3 0.6 0.3 0.3 0.1 0.1 0.5 0.0 0.4 0.1 (-1.5) 0.0 (-0.1) 0.2 0.8 0.3 0.3 0.1 0.1 2.3 0.0 (-0.1) (-0.2) 0.1 0.0 (-0.0) 0.0 (-2.7) 0.0 (-0.1) (-0.2) (-0.5) (-0.1) (-0.2) (-0.0) 0.9 (-0.1) 0.1 (-1.4) (-0.5) (-0.3) 0.2 (-0.0) (-0.0) 0.0 (-0.1) (-0.1) (-0.0) (-0.0) 0.0 (-0.0) 0.1 (-0.0) (-0.1) (-0.0) (-0.1) 0.2 0.0 (-0.3) 6.7 0.0 0.4 0.2 0.1 0.1

Volume 1,311 1,311 83,258 56,880 26,378 94,154 64,441 29,713 1,050,440 28,996 11,083 33,399 91,292 41,282 50,569 109,614 29,065 69,043 12,694 85,325 17,249 71,646 459 5,582 26,373 58,669 43,173 38,751 38,535 56,770 120,184 10,687 93,418 11,199 18,843 52,860 10,516 1,515,116 32,357 85,097 96,756 183,545 31,257 46,867 6,390 33,417 29,603 133,289 412,462 176,384 50,379 60,005 622 11,254 4,499 16,555 14,373 6,461 8,834 2,395 6,529 25,001 19,730 17,237 3,818 153,693 92,115 3,387 58,191 1,863,028 51,607 52,415 19,443 2,767 35,494

YOY % Chg 241.4% 241.4% 46.3% 27.3% 115.9% 23.1% 33.3% 5.5% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% 549.2% 330.8% 222.0% 1499.6% 633.4% 964.5% 980.1% 312.4% 455.6% 885.5% 424.3% 456.3% 756.5% 142.1% 617.2% 419.3% 774.1% 768.4% 818.2% 617.3% 378.8% 403.1% 356133.3% 38.1% -100.0% 207.2% 44.5% 41.6% 52.1% 45.6% 24.5% 41.8% 73.5% 44.6% 76.3% 33.7% 30.0% 66.7% 51.9% 21.8% 69.5% 22.7% 162.8% -100.0% 158.1% 29.9% 12.7% 27.8% 60.6% 21.8% 146.1% 60.6% 69.3% 34.0% 33.1% 36.6% -100.0% 60.0% 137.9% 44.9% 5.8% 89.1% 106.7% 1014.5% 58.1% 113.7%

Assembly Share % 0.0% 0.0% 1.1% 0.7% 0.3% 1.2% 0.8% 0.4% 13.3% 0.4% 0.1% 0.4% 1.2% 0.5% 0.6% 1.4% 0.4% 0.9% 0.2% 1.1% 0.2% 0.9% 0.0% 0.1% 0.3% 0.7% 0.5% 0.5% 0.5% 0.7% 1.5% 0.1% 1.2% 0.1% 0.2% 0.7% 0.1% 19.2% 0.4% 1.1% 1.2% 2.3% 0.4% 0.6% 0.1% 0.4% 0.4% 1.7% 5.2% 2.2% 0.6% 0.8% 0.0% 0.1% 0.1% 0.2% 0.2% 0.1% 0.1% 0.0% 0.1% 0.3% 0.3% 0.2% 0.0% 1.9% 1.2% 0.0% 0.7% 23.6% 0.7% 0.7% 0.2% 0.0% 0.5%

YOY Share Chg 0.0 0.0 (-0.1) (-0.2) 0.1 (-0.4) (-0.2) (-0.2) (-0.9) (-0.7) (-0.0) (-0.1) (-0.0) (-6.6) (-0.3) (-0.1) (-0.1) (-0.5) (-0.2) (-0.2) (-0.7) (-0.2) (-0.4) (-0.1) (-0.3) (-0.1) (-1.6) (-0.0) (-0.1) (-0.1) (-0.4) (-0.3) (-0.2) (-0.3) (-0.3) (-0.0) (-0.0) 10.0 0.2 0.1 0.4 0.9 0.4 0.5 0.8 0.3 0.7 0.1 0.8 0.2 0.3 0.0 0.0 0.3 0.6 0.5 0.4 0.3 0.5 1.5 0.1 (-0.2) (-0.1) 0.1 (-0.0) (-0.1) (-0.0) (-2.2) (-0.1) (-0.2) 0.1 (-0.3) 0.0 (-0.1) (-0.0) 0.4 0.0 (-0.1) (-1.7) 0.1 (-0.2) 0.3 (-0.0) 0.0 (-0.0) 0.1 (-0.1) (-0.0) (-0.0) (-0.0) 0.0 (-0.0) 0.0 (-0.1) (-0.0) (-0.0) (-0.1) (-0.0) 0.4 (-0.0) (-0.4) 3.4 0.1 0.6 (-0.0) 0.0 0.1

16 - 31 October 2010

Auto Monitor

N AMERICAN ASSEMBLY August 2010

Last 3 Months

Ownership Org/ Brand & Nameplate

Volume

YOY % Chg

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

416 2,228 2,487 1,818 289 7,525 330 3,572 5,230 3,678 10,252 2,811 3,303 1,335 725 17,012 7,215 8,159 16,827 25,070 45,623 4,481 9,915 14,571 8,346 1,093 1,730 19,075 7,870 5,402 2,957 115,108 6,118 1,983 3,364 26,553 27,029 1,812 22,947 1,381 10,662 11,245 2,014 38,085 31 26,287 11,767 3,234 594 561 2,079 87,471 25,793 2,152 5,496 6,991 2,596 2,902 9,784 5,545 3,480 6,806 12,939 2,737 250 68 68 123,672 7,131 3,994 26,178 17,513 8,449 3,119 15,250 2,629 12,609 12,216 9,272 5,312 40,933 756 10,015 24,565 5,597 1,095,714

135.0% 45.1% 207.0% 353.4% 118.9% 81.8% 17.9% 154.4% 389.7% 54.5% -4.0% 109.5% -100.0% 212.2% 249.5% 87.4% 1072.3% 10.8% 19.2% 14.7% 31.4% 91.0% 12.8% 58.5% 309.4% 63.8% -0.3% 459.8% 352.8% -100.0% -100.0% -100.0% -100.0% 17.3% -100.0% 290.2% 58.3% 736.8% -19.6% -10.7% 7778.3% 29.1% 11.9% 47.7% 176.8% 59.8% 95.2% -99.7% 168.7% 32.1% 567.4% -21.0% 26.1% 34.1% -100.0% 80.3% 33.1% 68.8% 19.1% 0.8% 83.7% -13.5% 100.0% 40.8% 18.7% 39.4% 5.8% -100.0% -58.3% -100.0% -100.0% -100.0% -100.0% 19.3% 19.3% 39.3% 11.3% 47.1% -0.8% 44.6% -17.1% 110.5% 101.9% 42.1% 250.3% 5.4% -30.7% 55.4% -35.1% 48.3% 53.3% 133.7% 34.6%

Assembly Share % 0.0% 0.2% 0.2% 0.2% 0.0% 0.7% 0.0% 0.3% 0.5% 0.3% 0.9% 0.3% 0.3% 0.1% 0.1% 1.6% 0.7% 0.7% 1.5% 2.3% 4.2% 0.4% 0.9% 1.3% 0.8% 0.1% 0.2% 1.7% 0.7% 0.5% 0.3% 10.5% 0.6% 0.2% 0.3% 2.4% 2.5% 0.2% 2.1% 0.1% 1.0% 1.0% 0.2% 3.5% 0.0% 2.4% 1.1% 0.3% 0.1% 0.1% 0.2% 8.0% 2.4% 0.2% 0.5% 0.6% 0.2% 0.3% 0.9% 0.5% 0.3% 0.6% 1.2% 0.2% 0.0% 0.0% 0.0% 11.3% 0.7% 0.4% 2.4% 1.6% 0.8% 0.3% 1.4% 0.2% 1.2% 1.1% 0.8% 0.5% 3.7% 0.1% 0.9% 2.2% 0.5% 100.0%

YOY Share Chg 0.0 0.0 0.1 0.1 0.0 0.2 (-0.0) 0.2 0.3 0.0 (-0.4) 0.1 (-0.8) 0.2 0.1 0.1 1.6 0.2 0.7 (-0.3) (-0.3) (-0.7) (-0.0) 0.3 (-0.3) 0.1 0.1 0.0 (-0.6) 0.7 0.4 0.2 (-0.1) (-0.0) (-0.1) (-0.7) (-1.5) (-0.0) 0.4 0.0 0.3 (-1.6) (-1.3) 0.2 (-0.1) (-0.0) 0.1 0.5 0.0 1.1 (-1.2) 1.2 1.1 (-0.0) 0 (-0.0) (-0.0) (-0.0) (-0.1) 0.6 (-0.0) 0.1 (-0.1) (-0.1) 0.1 (-0.5) 0.2 0.0 (-0.1) 0.0 (-0.1) (-0.0) (-0.1) (-3.6) (-0.4) (-2.0) (-1.1) (-0.0) (-0.0) 0.4 (-0.1) 0.0 (-0.9) 0.1 0.8 (-0.2) 0.5 0.1 0.1 0.7 (-0.2) (-0.5) 0.5 (-0.1) 0.1 0.3 0.2 -

Volume 819 6,782 5,791 3,659 796 19,879 1,310 8,872 14,896 12,205 25,945 8,876 13,523 7,875 4,110 1,433 40,202 20,107 20,415 40,265 68,779 126,757 14,149 27,113 42,492 22,409 2,842 5,458 55,520 17,303 14,440 8,352 319,312 240 17,127 4,809 9,249 394 73,197 76,578 7,094 60,750 3,637 31,156 30,642 4,439 115,487 21,545 60,373 33,569 6,723 2,122 1,341 3,260 247,417 62,931 6,240 13,507 17,852 6,134 7,766 35,548 19,104 8,091 18,634 44,579 6,501 530 204 204 330,503 20,049 12,778 70,914 50,575 21,567 8,490 42,956 6,552 34,713 23,847 23,900 14,162 121,909 3,439 29,638 71,551 17,281 3,009,417

Year to Date YOY % Chg 362.7% 341.8% 234.9% 296.9% 238.7% 380.2% 33.3% 247.2% 589.9% 98.6% -9.5% 113.5% 98.9% 146.4% 156.1% 172.6% 111.3% 12.5% 39.2% 119.5% 141.0% 210.4% 152.0% 77.7% 273.9% 262.2% 83.1% 476.7% 393.3% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% 25.8% -20.0% 108.2% 86.7% 816.7% -7.6% 5.2% 5811.7% 27.6% 4.5% 80.5% 94.2% -17.4% 118.2% -17.3% 124.8% 44.0% 400.5% -18.9% 25.9% 35.4% -100.0% 38.7% 100.8% 42.9% 15.1% 7.2% 94.4% -100.0% -100.0% 11.0% 132.6% 39.8% 20.0% 62.1% 41.3% -100.0% -64.7% -100.0% -100.0% -100.0% -100.0% 14.6% 14.6% 38.0% 17.0% 111.8% 2.7% 50.2% -16.8% 104.3% 117.7% 49.7% 119.5% -2.9% -31.8% 56.8% -34.0% 16.4% 84.1% 109.8% 52.5%

Assembly Share % 0.0% 0.2% 0.2% 0.1% 0.0% 0.7% 0.0% 0.3% 0.5% 0.4% 0.9% 0.3% 0.4% 0.3% 0.1% 0.0% 1.3% 0.7% 0.7% 1.3% 2.3% 4.2% 0.5% 0.9% 1.4% 0.7% 0.1% 0.2% 1.8% 0.6% 0.5% 0.3% 10.6% 0.0% 0.6% 0.2% 0.3% 0.0% 2.4% 2.5% 0.2% 2.0% 0.1% 1.0% 1.0% 0.1% 3.8% 0.7% 2.0% 1.1% 0.2% 0.1% 0.0% 0.1% 8.2% 2.1% 0.2% 0.4% 0.6% 0.2% 0.3% 1.2% 0.6% 0.3% 0.6% 1.5% 0.2% 0.0% 0.0% 0.0% 11.0% 0.7% 0.4% 2.4% 1.7% 0.7% 0.3% 1.4% 0.2% 1.2% 0.8% 0.8% 0.5% 4.1% 0.1% 1.0% 2.4% 0.6% 100.0%

YOY Share Chg 0.0 0.1 0.1 0.1 0.0 0.5 (-0.0) 0.2 0.4 0.1 (-0.6) 0.1 0.1 0.1 0.1 0.0 1.3 0.3 0.2 (-0.5) (-0.2) 1.3 0.2 0.5 0.6 0.1 0.1 0.1 0.3 0.6 0.4 0.2 (-0.1) (-0.0) (-0.0) (-0.6) (-0.0) (-0.0) (-0.0) (-2.2) (-0.0) 0.2 0.0 0.3 0.0 (-1.6) (-1.1) 0.2 (-0.4) (-0.1) 0.2 0.2 (-0.1) 1.2 (-0.6) 0.6 1.1 (-0.0) 0.0 (-0.0) (-0.0) (-1.0) (-0.1) (-0.2) 0.0 (-0.0) (-0.2) (-0.1) 0.1 (-0.0) (-0.1) (-0.4) 0.2 (-0.0) (-0.2) 0.1 (-0.0) (-0.0) (-0.1) (-3.6) (-0.5) (-2.2) (-0.9) (-0.0) (-0.0) (-1.2) (-0.2) 0.1 (-1.1) (-0.0) 0.7 (-0.2) 0.4 0.1 (-0.0) 0.2 (-0.5) (-0.6) 0.1 (-0.1) (-0.3) 0.4 0.2 -

Volume 2,193 14,373 16,820 8,129 1,873 49,488 3,094 18,998 37,742 38,079 71,961 19,649 91,796 22,880 11,845 1,433 107,778 45,909 49,572 122,966 159,628 301,699 38,494 70,004 78,098 52,375 8,484 14,742 133,184 44,269 34,520 22,330 1,183 321 2,507 2,886 869,871 1,320 43,881 13,591 24,452 4,460 199,128 207,205 27,438 163,683 10,740 78,866 79,933 15,174 287,101 62,112 142,856 82,133 18,887 5,045 3,715 10,127 649,218 3,136 183,920 15,531 34,292 48,637 17,497 18,136 88,561 43,214 20,322 48,748 108,969 17,145 1,110 90,813 63,318 27,495 531 531 836,499 55,885 29,071 191,956 124,713 52,480 26,747 92,139 15,212 84,820 46,409 71,447 45,620 277,186 11,077 67,215 159,229 39,665 7,884,524

YOY % Chg 1139.0% 151.9% 123.4% 160.6% 82.9% 1093.9% 49.3% -100.0% 73.1% 127.5% 172.6% 67.9% 85.9% 168.3% 81.2% 174.4% 41.3% 90.1% 51.2% 72.4% 46.9% 68.2% 111.4% 48.6% 143.4% 119.7% 61.6% 48.3% 108.0% 130.7% -50.0% -76.7% -100.0% -100.0% -100.0% -100.0% -100.0% -100.0% -35.0% -100.0% -48.4% 39.1% 12.8% 161.4% 200.4% 96.6% 11.6% 6.5% 22765.0% 45.3% 12.6% 57.5% 135.4% 37.1% 133.7% 20.7% 100.1% 112.3% 126.9% 98.0% 111.1% 55.9% -19.7% 55.8% 219.6% 95.0% 67.7% 43.2% 127.7% -100.0% -100.0% 6.7% 191.4% 155.8% 9.9% 119.5% 46.9% -100.0% -54.5% -36.3% -100.0% -27.7% 3.4% 15.4% 15.4% 65.1% 51.0% 76.9% 48.2% 62.3% 5.8% 89.8% 54.5% 113.3% 79.5% 41.0% -2.8% 43.2% -8.4% -8.2% 81.2% 94.7% 62.0%

Assembly Share % 0.0% 0.2% 0.2% 0.1% 0.0% 0.6% 0.0% 0.2% 0.5% 0.5% 0.9% 0.2% 1.2% 0.3% 0.2% 0.0% 1.4% 0.6% 0.6% 1.6% 2.0% 3.8% 0.5% 0.9% 1.0% 0.7% 0.1% 0.2% 1.7% 0.6% 0.4% 0.3% 0.0% 0.0% 0.0% 0.0% 11.0% 0.0% 0.6% 0.2% 0.3% 0.1% 2.5% 2.6% 0.3% 2.1% 0.1% 1.0% 1.0% 0.2% 3.6% 0.8% 1.8% 1.0% 0.2% 0.1% 0.0% 0.1% 8.2% 0.0% 2.3% 0.2% 0.4% 0.6% 0.2% 0.2% 1.1% 0.5% 0.3% 0.6% 1.4% 0.2% 0.0% 1.2% 0.8% 0.3% 0.0% 0.0% 10.6% 0.7% 0.4% 2.4% 1.6% 0.7% 0.3% 1.2% 0.2% 1.1% 0.6% 0.9% 0.6% 3.5% 0.1% 0.9% 2.0% 0.5% 100.0%

YOY Share Chg 0.0 0.1 0.1 0.0 0.0 0.5 (-0.0) (-0.0) 0.0 0.1 0.2 0.0 0.0 0.5 0.0 0.1 0.0 1.4 (-0.1) 0.1 (-0.1) 0.1 (-0.4) 0.0 0.2 (-0.1) 0.2 0.0 (-0.0) (-0.2) 0.6 0.1 0.1 (-0.0) (-0.0) (-0.0) (-0.1) (-0.7) (-0.0) (-0.0) (-0.1) (-0.0) (-0.0) (-0.1) (-1.8) (-0.0) 0.2 0.1 0.1 0.1 (-1.1) (-1.4) 0.3 (-0.2) (-0.1) (-0.0) 0.3 (-0.0) 1.1 (-0.3) 0.3 1.0 0.1 0.0 0.0 0.0 (-0.3) (-0.0) (-0.1) 0.1 0.1 0.0 (-0.0) 0.1 (-0.0) (-0.1) (-0.6) 0.2 0.1 (-0.3) 0.4 (-0.0) (-0.0) (-0.0) (-1.8) (-0.6) (-1.0) (-0.2) (-0.0) (-0.0) 0.2 (-0.1) 0.0 (-0.2) 0.0 0.7 (-0.2) 0.2 (-0.0) 0.3 0.1 (-0.1) (-0.4) (-0.5) (-0.1) (-0.7) 0.2 0.1 -

Auto Monitor

THE OTHER SIDE

Getting Personal With Rajesh Sethi, Chief Executive Ofﬁcer, Mondial Assistance If not in the auto industry, where would you be? I have always been drawn towards creating something new from scratch and had put a clear roadmap in place before entering into the current venture. I am sure if I was not here, I would be building some new business, irrespective of the industry What car do you drive? What do you dream of driving? No Ferraris or Lamborghinis for me. For me, success is more than about my bank balance or the car I own. Success for me is really doing what I love, and doing it well. I would love investing my time and money into a sound business idea Your most recent indulgence… Food is my only indulgence. The sumptuous Vietnamese meal that I ate by myself today afternoon was my last indulgence! What are you currently reading? I am currently reading ‘Leading Change’ by Harvard Professor John Kotter What is Mr Sethi doing when not talking auto? I enjoy spending time with my family, playing with my dog and kids Outdoor activity you would miss office for… I always get allured by trekking on unpredictable and demanding treks Where did you go for your last holiday? This summer vacation I freaked-out with my kids at Universal Studio, Singapore You get angry when… I get ticked off by bureaucratic attitude and slow rate of change. I get angry with people who change at the ‘speed of rock’ and who whine and sabotage new ideas by saying that ‘we tried and it won’t work’. What is the one thing you would like to change about yourself? Seriously, I would not like to change a thing. I like me the way I am! Best thing to have happened to you… My family

16 - 31 October 2010

In Person Rajesh joi ned Mondial Assistance Ind ia as Ch ief Executive Officer in April 2008. He has over 18 years of experience in wide range of industries like financial services, automotive, engineering, insurance and retail. He has strong general management skills coupled with sound business acumen to develop and manage profit ad growth centres from start-up to significant net income contributors. His areas of professional expertise include strategic alliances, positioning companies and defi ning business processes towards sustainable business growth. He is a GE Certified Quality Green Belt. Rajesh is a distinguished speaker and a business coach for developing and managing large businesses while keeping the team empowered, informed and energetic. He is best described as an inspiring leader – energetic, enterprising, assertive, passionate and goal-oriented. He has a strong fi nancial acumen and displays the ability to challenge conventional wisdom and create solutions. Rajesh completed the Executive Education Program from Harvard Business School and holds a Bachelor’s degree in Mechanical Engineering. Rajesh received his Professional Diploma in International Business from All India Management Association.

An experience I won’t forget… I have been fortunate to work with great leaders in my career, with organisations like Tata’s and General Electric. I admire these companies for their business acumen and strength of talent. They have strong leadership at multiple levels and a professional approach in solving issues and problems. My leaders were ready to take-on business challenges and take us along with them in that journey. Most of these leaders were very passionate about people. They were great motivators of people with the sheer ability to connect with team. While, my seven years with GE have a crucial influence on my professional life, my most unforgettable experience has been building Mondial India from a mere business idea to its current market leadership position. In a short period of around three years in India, we have launched and attained dominant position in the multiple product segments. We are currently delivering a range of services designed to enhance customer satisfaction and product value for several leading names across insurance, travel, banking and automotive sectors. This success is an outcome of many factors but the foremost being passion and perseverance of the team members, driven with unyielding focus on quality, integrity and customer experience. At the core of Mondial experience, people have been the key differentiator. I believe that it’s the powerful mix of individual and collective talent that has powered this success.

Illustration: Sachin Pandit

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