Auto Monitor - 16-30 September 2011 by Infomedia18

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

Auto Monitor Vol. 11 No. 17

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16-30 September 2011

INT INTERVIEW ‘WE NEED TO ENHANCE OUR FOOTPRINT IN SERVICE’ FOO Ranjan Kar, Director, Automotive & Textile Business Units & Pune plant, SKF India Pg

78 Pages

COMMERCIAL VEHICLES SPECIAL Pg 18-50

Lesser competition

Why foray into tier-2 cities

Increasing finance penetration

TIER II CITIES: THE NEW HOTSPOTS FOR CAR LOANS

Profitability at par with larger cities

Diesel variants of Etios, Liva launched

oyota Kirloskar Motor (TKM) launched the diesel variants of Etios and Etios Liva. The vehicles are powered with 1.4 litre D-4D common rail diesel engine that generates maximum power of 68 PS @ 3,800 RPM. Etios diesel is priced from

`6.44-7.87 lakh (ex-showroom Delhi) while the Liva diesel is priced at `5.54 lakh (ex-showroom Delhi).

Renault launches Koleos upgrade at ` 22.99 lakh

s per its plan to launch ﬁve models in India by 2012, Renault India launched its SUV Koleos priced at `22.99 lakh (ex-showroom Delhi). It is a ﬁve seater crossover SUV, which will compete against the Toyota Fortuner, Honda CR-V and Hyundai Santa Fe. It has a sixspeed automatic gearbox.

Abhishek Parekh Mumbai

enhance tie-ups with authorised service stations and third party garages in the coming months. It is in the process of evaluating a partnership model for having a presence in vehicle servicing business or any other model suitable in the evolving market scenario. The key consideration is what value could be offered to customers under any partnership or self promoted initiative. Though SKF Group has been selling certified automotive components in various other markets, including India, it is not present in vehicle servicing business in any of these markets. The need to evaluate entry into vehicle servicing business has been prompted by the unorganised nature of the market as well as growing vehicle population and rising demand for quality and certified service infrastructure. The company recently started a certification programme for mechanics or technicians in various aspects

KF India is evaluating ways to enhance footprint in vehicle servicing business and such a foray may come about in the commercial vehicle servicing. Company ofﬁcials insist that any such initiative on vehicle servicing is at a very preliminary stage and may take a very different form altogether. “There are a number of electrical or electronics related faults occurring in a vehicle and this may be a major opportunity for a player like us to offer our expertise, perhaps in partnership with another player,” said Director, Automotive & Textile Business Units & Pune plant, SKF India, Ranjan Kar. He adds that the unorganised nature of the vehicle servicing infrastructure points to various opportunities even as customers are beginning to demand higher service standards and quality assurance. The company is looking to

A range of components by SKF

of automobile servicing. This initiative is aimed at raising the standards of service in automobile repair workshops and service stations. “Third party garages are playing an important role in organisation of the automotive service business. The reliability of service is critical issue whether it is available from authorised service station or third party garages,” said Kar. Vehicle service infrastructure has to be available at the arms

Domestic Sales Sector

Jul-10

Change

201,704

183,657

-8.95%

51,934

64,241

23.70%

45,369

43,949

-3.13%

938,514

1,056,906

12.61%

TOTAL

1,237,521

1,348,753

8.99%

Exports Sector

Jul-10

Jul-11

Change

34,629

48,841

41.04%

5,740

7,499

30.64%

21,989

32,176

46.33%

135,973

175,970

29.42%

TOTAL

198,331

264,486

33.36%

ore than the conventional criteria of quality, cost and delivery, OEMs across the world prefer to engage with suppliers with stable lines of communication, good work culture, effective process orientation and end-customer knowledge, according to the past President of Automotive Component Manufacturers’ Association (ACMA), Srivats Ram. This was his view on the study by JD Power Asia Paciﬁc presenting ‘Insights into Supplier-OEM relationship: A Benchmarking Study.’ Union Minister for Ministry of Heavy Industry & Public Enterprises, Praful Patel released the study at the 51st Annual Convention of ACMA. The study delineates several key parameters that suppliers need to focus on to distinguish their performance from others. It reveals ﬁ ndings about the relationship between suppliers and OEMs in the Indian domestic market benchmarked against

Illustration: VR Gokul

DATA MONITOR

length, especially for commercial vehicles. SKF India sells products including brake pads, steering and suspension systems components. These components are not manufactured by the company but are certiﬁed for quality assurance purpose. The initiative is not only helping the company grow its business but also helping in better organisation of the aftermarket sector. SKF is a leading supplier in the areas of bearings, seals, mechatronics, services and lubrication systems. The company’s service offer includes technical support, maintenance services, engineering consultancy and training. It has three manufacturing facilities in Bangalore, Pune and Haridwar and services its customers through its strong channel partner network. It manufactures entire range of bearings to meet the requirements of all vehicle segments within the automotive and engineering sectors.

OEMs seek deeper engagement with suppliers Our Bureau New Delhi

* Source: SIAM/ ** all sub segments considered

Pg 14

SKF evaluating vehicle servicing business

NEWS IN BRIEF

Jul-11

` 50

AUTONOMICS

Strong growth prospects

practices in the developed markets of the US, Germany, France and the emerging market of China. The study indicates that the OEMs prefer suppliers who can jointly work with them in developing products and technologies to be delivered with a global footprint. “OEMs today are consolidating and looking to optimise their points of contact for efﬁcient and effective supplier management and cost savings. Consolidation of supplier base will call for Tier I suppliers to continuously upgrade Tier II suppliers. This will enhance business opportunities for suppliers in the future, but will pose signiﬁcant challenges, as Tier Is will have to invest

in requisite skills and resources to manage an integrated supply chain,” Srivats Ram said. Past President of ACMA and MD and CEO, Shriram Pistons and Rings, AK Taneja said, “Keeping in view the common goal that the two share, the supplier-OEM relations should graduate from transaction relationship to strategic partnership.” While the growth prospects of the Indian auto component industry are promising—it is evolving as a critical part of the global auto eco-system. For Indian suppliers, on one hand, there is the need to maintain competitiveness in an inﬂationary environment and on the other, the need to compete with the best in an increasingly uncertain glo-

bal market, he opined. The study that is based on the responses from over 70 OEMs and suppliers in India, China, US and Europe reveals the need for multiple key enablers that are critical in deﬁ ning a stronger business relationship. In China and India, OEMs help the supplier improve and grow, while in Europe the focus is on improving delivery. The study also revealed that product liability will be an area of challenge in India and therefore suppliers need to focus on understanding the contractual risks, devise ways to insulate themselves and contractually manage Tier II and Tier III suppliers. In China, suppliers are challenged to meet the demand while in the US, the suppliers-OEM relationship is pivoted on innovation in products and processes. Suppliers will continue to face pressure as OEMs there are likely to increase thrust on sourcing from low cost countries. Akin to India, in international markets too, both suppliers and OEMs are struggling with the shortage of skilled manpower, the report added.

CONTENTS CORPORATE SAE India to organise APAC 16 on mobility technology

The Society of Automotive Engineers India is organising the 16th Asia Pacific Automotive Conference to bring automobile design and development into prominence

17 GLOBAL WATCH New Mercedes-Benz V6 uses Federal-Mogul’s piston technology

63`

Federal-Mogul, jointly with Mercedes-Benz, has developed a piston technology for Daimler’s V6 diesel engine that helps to reduce fuel consumption and emissions

Altair assists in hydraulic hybrid transit bus

Sweden’s Debt Enforcement Agency has started collection proceedings against Saab after the cash-starved carmaker failed to meet the deadline to pay two suppliers

Audi new-car sales rise on China, Germany growth

Audi sold 94,100 cars in August, a rise of 17 percent over 2010 figures, thanks mostly to growth in China and Germany and continued strong demand for the new A6 model

Volvo developing a plug-in hybrid bus

Volvo Buses is currently developing a plug-in hybrid bus, to be tested in Gothenburg, Sweden, that can drive silently and exhaust-free powered by only electricity

M&M to introduce premium-ultra low HP tractors

M&M’s FES is looking at aiding the farm mechanisation process in the country through creation of an ecosystem of products and technologies aimed at improving productivity

Meritor HVS expands product portfolio

THE OTHER SIDE

Meritor HVS recently launched a two-speed axle in India that offers significant fuel economy benefits to truck customers

AMW to focus on trucks, fill product gaps

AMW is looking to notch up more than 100 percent growth in the MHCV segment in this fiscal and is gearing up to put the necessary supply chain and distribution network in place

HM veers into CV segment

Hindustan Motors is all set to launch commercial vehicles with Euro IV complaint diesel engines by November this year

Eaton to supply MLocker to CV segment

Maninder Singh Seehra, Chief Executive Officer, GNA Udhyog

Seehra is a third generation entrepreneur and established the propeller shaft plant for the group in the 1980s, and has led it to grow in to one of the key players in the automotive industry

Eaton Corporation is planning to supply locking differentials, meant for off-roading applications, to heavy commercial vehicles sector in India

JCBL to expand cargos, introduce light tippers

IMAGE

Mercedes launches new C-Class sedan In order to enhance its portfolio with luxury cars in India, Mercedes-Benz has introduced the advanced version of its ﬂagship C-Class sedan. The ‘C 200BE Avant Garde’ which comes with petrol engine with a seven-speed automatic transmission has been priced between `29.75 lakh and `32.30 lakh (ex-showroom Delhi). “We are targeting young executives and businessman for the new car and we plan to sell 250-300 units of the new C-Class, as against about 200 units of the outgoing version,” Director, Mercedes-Benz India, Sales and Marketing, Debashis Mitra said. Talking about the future plans of the company, Mitra said it would introduce three to four new products, comprising upgrades and new variants of the existing models in the next couple of months.

Debashis Mitra, Director Sales & Marketing, Mercedes-Benz at the launch of the New C 200BE Avant Garde priced at `29,79,970 (ex-showroom Delhi)

Auto Monitor

of the fortnight

JCBL is planning to expand its product portfolio in the niche markets of the cargo segment and light weight in-house designed tippers

Auto Monitor

16 - 30 September 2011

INTERVIEW

“We need to enhance our footprint in service” SKF India is hoping to implement valuable lessons learnt during the last downturn in late 2009, to beef up its manufacturing practices. In an exclusive interaction with Auto Monitor, Director, Automotive & Textile Business Units & Pune plant, SKF India, Ranjan Kar elaborates on the current demand scenario in the automotive sector and how the company is learning to evolve a flexible approach to manufacturing and capacity build-up. Abhishek Parekh

What is the current scenario in the automotive sector and what is your outlook for the sector? The automotive division at SKF India caters to most of the passenger vehicles and commercial vehicle manufacturers in India. Two-wheeler manufacturers are catered to by SKF under a different division as two-wheelers is a large volume, but smaller unit size business. How were you impacted by the downturn couple of years back and what has been the learning experience?

The downturn for a few months in 2009 and early part of 2010 as well, came as a sudden phenomenon. However, we were very confident that it would not last for a long duration. One of the key learnings from the downturn is that a supplier, especially a high volume one, needs to have the capability to upscale and downsc downscale protim frame. duction in a short time OEM should A supplier to the OEMs a be in a position to anticipate the demand-supply scenario based on customer feedback and market scenario. Building lexibilit is very operational f lexibility critical and it is somet something easier said than done. positi SKF is very positive about its Indian operations as India econom in the is a growing economy long term. Being a su supplier to giv us an a number of OEMs gives advantage to plan our ccapacities in anticipation of grow growing production volumes and po population (for aftermarket). The automocon tive sector demand continues to t look positive though there may be some minor ups an and downs in sales and producti production as the automotive industry is cyclimo cal. I feel the sales momentum is likely to return du during festive season in the ne next month or two, or in the fourt fourth quarter this fiscal. Automotive bearings bea are more susceptible to countereffo feiting. What efforts have you made to cou counter this menace?

Counterfeiting happens due to two key reasons. The first one being that the product is so good and well received that it is worth counterfeiting by concerned counterfeiters. Secondly, it is a matter of how deeply a manufacturer or a supplier can penetrate the market—the widespread network and availability of the original product can help in diminishing the hold of counterfeiters. A major reason for availability of fakes is the lack of availability of the original or genuine products. I would say that there has been a significant impact of the campaign against fakes being carried out by ACMA, though the counterfeit products still continue to be available. Apart from bearings, products like sealing systems, fasteners and grease are other products susceptible to counterfeiting. Educating dealers and customers on genuine parts also helps in tackling the menace. Additionally, the workshop mechanics or technicians also have a role to play here as their reputation is at stake while recommending or using counterfeit products. Any future initiatives planned in this direction? We are look ing to have more tie-ups with third party ser v ice stations across the country. That is the way to go for the future. We are also evaluating on whether to have SKF certified service stations in place or even enter vehicle servicing business ourselves or partner with another company for such an initiative. The larger context is that we are already selling a number of components, which we do not manufacture our-

selves, but are complementary to our core product: bearings. Moreover, we have also started a mechanic certification programme. Hence we are an important stakeholder and participant in the organisation of vehicle servicing business. We have inittiated a certification programme for mechanics or technicians on various aspects of automotive servicing. Such a certif ication would help the concerned mechanic in understanding the nuances of automobile servicing and raise service standards. What are the future plans? We are aiming to expand our reach to smaller towns through non-exclusive dealership network as well as distributors. We are looking to grow our exports, which currently comprises around 30 percent of the turnover in the automotive business, directly and through the network of our parent organisation. We are looking to develop bearing types meant for the Indian market through our research and development efforts at SKF India and such products could also have a signiﬁcant market for exports. Our technical centre has been established keeping local demand and requirements in mind. Most vehicle manufacturers are looking at India speciﬁc models, designed and developed in India, and these models would require local expertise and suppliers. Thus not only us but many suppliers like us with global presence would be evaluating developing products for the local market that can be adapted for exports as well.

Auto Monitor

16 - 30 September 2011

CORPORATE

ACMA sets benchmark for progress, performance Shambhavi Anand T Murrali New Delhi

he ever increasing inﬂ ation, fuel price hikes and the hardening of interest rates that are affecting the competitiveness and growth of the automotive industry were the concerns expressed at the recently concluded 51st annual convention of Automotive Component Manufacturers’ Association (ACMA). Though the apex body is bullish about the medium and long-term prospects, it is concerned about deferral of investment in the view of recent slowdown. At the convention, the then President of ACMA, Srivats Ram insisted on the government to continue with the export incentives in the form of Duty Entitlement Pass Book (DEPB) and consider interest subvention as these initiatives will ensure that core manufacturing remains in India. “With the growth prospects over the next five years remaining strong, it is important that we plan to build adequate infrastructure and create alignment of objectives amongst management and labour in our industry to build an enduring competitive ecosystem for our industry,” he said. He also expressed his concern over the Free Trade Agreements (FTAs) that is being planned by the government. Inaugurating the event, the Union Minister of Heavy

Industries and Public Enterprises, Praful Patel said that he ﬁ rmly believed that the moderation of growth in the past few months is a transient phenomenon. The coming years shall continue to witness high levels of growth for the Indian automotive industry since the primary demand drivers like vehicle penetration levels, growth of the economy, the demographic proﬁ le of the country, increasing wages and salaries coupled with the huge investments being made by the government in the infrastructure sector are all very favourable. Inclusive and equitable growth necessitates large employment generation for the vast numbers of youth, especially from the rural and semi-urban areas. Since the job creation potential from agriculture and services sectors cannot support the demand, the vast number of new jobs will have to come from the manufacturing sector. It is therefore necessary to increase the contribution of manufacturing sector of national GDP to at least 25 percent from the current 14 percent. “For this to happen, the automotive industry which today contributes 22 percent of the manufacturing GDP, will need to play a major role. Therefore, one of the primary objectives for us is to ensure that the huge future market potential that exists in this sector is met by the indigenous industry and not by way of imports,” he said. At the panel discussion on the theme ‘Benchmarking for Progress, Performance &

Competitiveness,’ Chairman, Maruti Suzuki, RC Bhargav said, “Both, the suppliers and OEMs should understand the total longterm interdependence. Suppliers need to understand the obligations of OEMs when it comes to exporting. OEMs are dependent on their supplier to be able to reach global standards and it is necessary for every employee of each supplier to adhere to standards and speciﬁcations. Chairman and MD, Bharat Forge, Baba Kalyani said, “I see people as the biggest asset for Indian companies. People in the country are ﬂexible, willing to learn and hard working which the companies can capitalise on. They might not be process-oriented but that is where the role of leadership comes in. Leaders can make that happen. Also, the Indian suppliers are doing much better than in any developed nation. For instance, in Europe, 10 suppliers go bankrupt every year as compared to one every year in India.” According to President and MD, Ford India, Michael Boneham attracting and retaining good people seem to be the biggest challenge not just for Tier I but also for Tier II and Tier III. Also component manufacturers, apart from exporting, should themselves support their OEM customers in their export endeavors. Kalyani said, “There are two types of OEMs in India–Indian OEMs aligned to global standards and OEMs aspiring to go global. The second category needs to understand that price is

Arvind Kapur takes over as the new ACMA President

Arvind Kapur, President, ACMA

At its 51st Annual Session, ACMA announced the change in guards at the association with Managing Director, Rico Auto Industries, Arvind Kapur taking over as the new President and Chairman & Managing Director, Bharat Gears, Surinder P Kanwar, as its Vice President for the term 2011-12. Arvind Kapur said the uncertainty in the international markets as also increase in interest rates and fuel prices, has led to moderating of growth in vehicle consumption. In order to keep the growth thrust and to stay competitive, the industry, on one hand, needs to optimise capacities, raise capital, absorb technologies, build R&D com-

Talent Recognised During the 51st annual convention, ACMA Awards 2010-11 were presented to companies that achieved excellence under four categories- exports, technology, quality & productivity and manufacturing excellence—in both SME and non-SME categories. There were 75 nominations for the awards, which was the highest till date. Besides, the winners of Quality Circle Competition 2010-11 were also honoured.

Gold trophy ACMA Awards Winners (2010-11)

Gold Winners of Quality Circle (2010-2011)

EXPORT Non-SME Category: Raunaq Automotive Components SME Category: Luxite Industries

NATIONAL WINNERS Team Warriors: Rane TRW Steering Systems

TECHNOLOGY NON-SME Category: Delphi-TVS Diesel Systems QUALITY & PRODUCTIVITY Non-SME Category: Minda Corporation, Chakan SME Category: Bohra Rubber, Faridabad

Praful Patel, Union Minister for Heavy Industries and Public Enterprises releasing the study

Surinder P Kanwar, VP, ACMA

petence, focus on internal governance and develop strong organizations. On the other hand, the government needs to address the challenges of access to capital, availability of skilled manpower, rapidly increasing inflation, access to technology and lack of proper infrastructure. Kanwar said the auto component consumption in 2010-11, in tandem with the significant growth of vehicle sales in the domestic market, grew by 34 percent to $39.9 billion. However, in the current fiscal, the industry witnessed slowdown of growth in vehicle consumption. Therefore the auto component industry is expected to grow in the range of 12-15 percent.

MANUFACTURING EXCELLENCE Subros, Noida

REGIONAL WINNERS (NORTHERN) Team Sankalp: Rico Auto Industries REGIONAL WINNERS (SOUTHERN) Team Warriors: Rane TRW Steering Systems REGIONAL WINNERS (WESTERN) Team Eureka: Tata Yazaki Autocomp an important issue for suppliers. If one has expectations of quality they should be ready to pay more,” Kalyani added. Executive Vice President, Passenger Cars, Robert Bosch, Dr Markus Heyn said, “Good process competence leads to good product designs. Hence both the parties should work in collaboration.” Moderating the session past President, ACMA and MD and CEO, Shriram Pistons and Rings, AK Taneja said, “The supplier-OEM relationship in the country needs to graduate from transaction based relationship to strategic partnership.” President, ACMA, Arvind Kapur said that globally, the interest rates for industries range between zero to five percent, while in India it is nine percent upwards. Increasing interest rates is not the solution to contain inflation as few countries including Brazil and Turkey having similar economies to India had reduced interest during high inflation and seen the inflation being contained. He asked the government to look at options to reduce the cost of finance.

EDITORIAL Abort the idea

y the time the issue reaches you, the Reserve Bank of India would have announced its diktat on revision of interest rates. Food inflation percentage continues to be close to double digits for more than five weeks in a row and this could have been the catalyst for the central bank to take a call on raising the interest rate. However, the fact is that the interest rates for every segment—be it manufacturing or housing or even on vehicle purchase, is already on the higher side and increasing it further will only hamper the growth. Between the first quarter of last fiscal and now, the interest rates have gone up to 16 percent from the single digit. The borrowing cost in almost every economy in the world is not more than five percent. The central bank has raised borrowing costs 11 times since March 2010 and further increase will throw us from the frying pan into the fire. It will discourage the industries from being competitive and might end up making kamikazes of them. At the recently concluded ACMA convention, the President of the apex body pointed out an interesting fact about the inflation and interest rates. Turkey and Brazil, which have similar economic profi les to India, could reduce interest rates, while the inflation was high, which ended up on containing the inflation. The central bank should think of several options including this to beat the inflation, which is a growing concern for the country. Though the slowing down of vehicle sales is an issue, the long-term outlook continues to be positive. The rising interest rates may dent the demand for vehicles, especially the commercial vehicles, but there will not be any major changes in the long-run. However, the cascading effects will be a cause for concern since the operational cost of every industry is bound to increase. The worst hit will be the manufacturing industries as the increasing cost of fi nance

will defer the return on investments eventually depleting their profitability. If the government wants the industry to grow, it need not give any sop. Instead, it can look at creating a conducive environment by revisiting archaic labour laws and focus on infrastructure, besides maintaining interest rates at par with similar economies. This way, the industry will be incapable of failing. Thus, abort the idea of hiking interest rates. Gujarat is in the news off late for capturing a slew of investments, especially from the auto industry. The last big ticket investment by a global OEM—Peugeot PSA Citroen has gone to the state. And with Maruti fi rming up plans, Gujarat will have a golden pentagon of passenger vehicle manufacturers in the state—Tata Motors, Ford India, Peugeot, Maruti and the fi rst MNC entrant, General Motors. In the commercial vehicle segment, AMW and Atul Auto have been operating there for some time now. Hero MotoCorp and Bajaj Auto are also looking at Gujarat to set up their next manufacturing facilities. The challenge for the state is to maintain the same tempo so that it can continue to be the preferred destination of the auto industry. The focus of the issue is Commercial Vehicles and we have attempted to present a repertoire of insightful stories about the segment. Wishing you much pleasure reading. Do send us your feedback.

T. Murrali t.murrali@infomedia18.in

FORTNIGHT’S QUOTES S Sandilya, President, SIAM

Arvind Kapur, President, ACMA

“Our goal is to be a catalyst for the Indian automobile industry to be a preferred global manufacturing and design base, which will contribute to India’s economic development”

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“The uncertainty in the international markets as also increase in interest rates and fuel prices, has led to moderating of growth in vehicle consumption”

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Auto Monitor

16 - 30 September 2011

AUTONOMICS

Tier II cities: The new hotspots for car loans T

Aniket Dani Team Leader, CRISIL Research

Ajay Srinivasan Head, CRISIL Research

Large cities are set to lose their dominance in the car loan market, as financiers see huge growth potential in relatively underpenetrated Tier II markets. The share of the top seven cities in pan-India car loan disbursements, is expected to decline to 46 percent by 2015-16

he market for car loans is expected to increasingly shift from the seven largest cities in India to Tier II cities over the next five years. CRISIL Research’s analysis of 15 Tier II cities shows that despite lower disbursements, these markets present an attractive growth opportunity for financiers. However, given the differences in growth prospects and asset quality, selecting the right Tier II markets will be critical for fi nanciers to operate profitably. Large cities are set to lose their dominance in the car loan market, as financiers see huge growth potential in relatively under-penetrated Tier II markets. The share of the top seven cities in pan-India car loan disbursements, which stood at almost 54 percent in 2010-11, is expected to decline to 46 percent by 2015-16. This decline will be led by a rise in car sales in Tier II markets and an increase in finance penetration, which indicates strong growth prospects for financiers foraying into these cities. Moreover, lesser competition, higher yields and profitability levels comparable to the larger cities make Tier II markets an extremely attractive proposition for financiers. In a new report titled ‘Retail loan products: Opportunities and risks beyond the metros and mini-metros’, CRISIL Research has assessed the current market opportunity in the car loans market, growth prospects, emerging competitive scenario, and key operating matrices such as fi nance penetration, average ticket size, loan to value ratio, and non-performing assets across 15 Tier II and Tier III markets. The markets covered are Bhopal, Coimbatore, Indore, Jaipur, Kanpur, Kozhikode, Lucknow, Ludhiana, Madurai, Mysore, Nagpur, Nashik, Rajkot, Thiruvananthapuram, and Vishakhapatnam. Based on extensive interactions with banks and NBFCs across these 15 cities, CRISIL Research concludes that growth prospects in many of these markets are much stronger than in the larger cities. Car loan disbursements in 10 of the 15 markets covered in this report are expected to post a two-year CAGR of about 20 percent during 2010-11 to 2012-13 as compared to 13 percent in larger cities. This kind of out-performancecanbeattributedtoincreasingsales volumes and expectations of an increase in finance penetration. As per our assessment, average car-loan penetration in these markets is about 65 percent, significantly lower than the pan-India average of 74 percent (78 percent for the top seven cities). In fact, in three of these markets, finance penetration is less than 60 percent. In two markets, one in the south and north each, car loan disbursements are 1.5 times housing loan disbursements. Given such positive indicators, we also expect more fi nanciers to enter these Tier II cities. The largest two players in terms of market share are estimated to account for 45 percent of car loan disbursements in 2010-11, on an average, across the 15 markets analysed. The corresponding percentage in larger cities is much lower, at 30-35 percent. In terms of profitability too, despite a currently lower market size, these cities would be as profitable as larger cities, provided credit quality is tightly monitored. As against popular belief, not all Tier II markets fare poorly in terms of asset quality. In 7 of the 15 cities studied, the level of car loan NPAs compares favourably with the all-India average. CRISIL Research, therefore, believes that selecting the right Tier II market based on business prospects and asset quality will prove profitable for car fi nanciers. (Please note that the views expressed here are those of CRISIL Research and not of CRISIL’s Ratings division.)

Small is big: Rationale for expanding into Tier II markets Strong growth prospects

Lesser competition

Why foray into tier-2 cities

Increasing finance penetration

Profitability at par with larger cities Source: CRISIL Research

Lower penetration levels to drive growth in Tier 2 markets 78%

65%

Source: CRISIL Research

Higher growth expected in Tier 2 markets over the next 2 years CAGR in disbursements (2010-11 to 2012-13) 20%

13%

Tier 2 cities

Top 7 cities

Source: CRISIL Research

Approach and Methodology

Sourcing

130 meeting with branch managers, area heads, dealers and manufacturers City development plans Income demographics data Economic surveys Cross veriﬁcation of information obtained from primary sourcing

Forecast

Interactions with dealers and ﬁ nancers

Analysis of key growth drivers Signiﬁcant developments in the economy Level of maturity of the market Income demographics analysis for the

respective cities

Auto Monitor

16 - 30 September 2011

CORPORATE

SIAM convention chalks holistic, sustainable plan Nabeel A Khan New Delhi

he automotive industry can have open dialogue with the government to address any issues that may seem to restrict growth, the Union Minister of Heavy Industries & Public Enterprises, Praful Patel stated. Inaugurating the 51st annual convention of the Society of Indian Automobile Manufacturers (SIAM) recently, Patel said that there is a dire need to focus on developing new technologies for not only vehicles but also in the manufacturing processes as it will help optimise the resources.

Vision 2020 The theme for the event was ‘Reinventing Mobility: Vision 2020’, and the day-long event on the mobility industry saw acclaimation and praise from ministers, bureaucrats and foreign delegates for its unprecedented growth story in the past decade. The convention witnessed a huge participation of foreign delegates, policy mak-

ers apart from the leaders of the Indian automobile industry. Acknowledging the industry’s success, Patel said, “It’s great to see that the automobile industry grew inspite of the government.” As part of the event, panel discussions were organized to analyse, understand and create a road map to ﬁght the impending challenges and technology for future. A number of vehicle manufacturers shared their future plans also. According to the Union Minister of Urban Development, Kamal Nath, high quality access to mobility can be ensured if the government and the automobile industry come together. Raising the issue of transportation, he insisted for the auto industry players to partner with the government to ﬁnd a suitable solution. Deputy Chairman, Planning Commission, Dr Montek Singh Ahluwalia addressed the serious issues related to infrastructure in the country. He asked the industry players to also focus on public vehicles to improve the public transport scenario in the country. Acknowledging that harden-

ing interest rates have affected the automobile sector and are a cause for concern, Patel expressed hope that the slowdown in domestic sales will be a temporary phenomenon. He also spoke about improving the infrastructure keeping in mind the future needs of the country. “By 2020, where do we have the parking space for 10 million vehicles? The government needs to improve the infrastructure in the country,” he said. He also requested the industry leaders to tap the rural market of the country as he believed there is a great opportunity there to address the latent demand for mobility. President of SIAM and President, Automotive & Farm Equipment, M&M, Dr Pawan Goenka, spoke about the challenges ahead for the automobile industry. “The growth ﬁgures that we are now working out for the 12th Five Year Plan indicate a rise in domestic vehicles sales to 5.6 million and exports to 1.3 million by the end of 2017.” He also talked about the new technologies and improving the fuel efﬁciency and capacity of manufacturing at a larger scale. While

thanking the government for the initiatives, he assured that the industry will contribute 10 percent of GDP in the Indian economy by 2016.

SIAM’s 51st Annual Convention

The ﬁ rst session was held on ‘Global Automobile Industry: The India Decade’, which was moderated by Goenka while Executive Director, Jaguar Land Rover, UK, Mike Wright and Executive Director Product Development, Asia Paciﬁc and Africa, Ford Motors Company, China, Kumar Galhotra were the main speakers. Secretary, Government of India’s MoHI, S Sundareshan presented the special address. During his address, Mike Wright said that Tata Groupowned luxury car maker, Jaguar

New Leaders

S. Sandilya, President, SIAM

Vikram Kirloskar, Vice President, SIAM

Eicher Group Chairman S Sandilya has been elected as the President of the Society of Indian Automobile M a nu f a c t u r e r s , wh i le Toyota Kirloskar Motor Vice Chairman, Vikram Kirloskar, has been elected as new Vice President. Sandilya will replace President, Automotive & Farm Equipment, Mahindra & Mahindra, Pawan Geonka. The vehicle manufacturers’

apex body also appointed Ford India, President and Managing Director, Michael Boneham as the new Treasurer. In a statement, the incoming president of SIAM, Sandilya said, “Our goal is to be a catalyst for the Indian automobile industry and to be the preferred global manufacturing and design base, which will contribute to India’s economic development.”

Session Highlights

Land Rover (JLR) is looking to increase manufacturing of its vehicles in India in order to escape the high duty on its products imported to the country. Union Minister of Urban Development, Kamal Nath emphasised the need to focus on the new urban areas as they will be contributing 50 percent of the total GDP and will create 70 percent of the total jobs. He also said that the current infrastructure development is not for the future but catching up with past. He insisted that the private players should connect with the municipality and jointly develop the public transport system. In the concluding session, India’s celebrated entrepreneur, Rahul Bajaj threw light on overall economic possibilities in India.

16 - 30 September 2011

Auto Monitor

SPECIAL REPORT

SAE India to organise APAC 16 on mobility technology Our Bureau Chennai

hough the Indian automotive industry has notched a prominent position in the global automotive map, it still has a long way to go to become a significant player in the world. And this is primarily because the vehicles that are being manufactured in the country are not fully designed yet. As part of supporting this intent, the Society of Automotive Engineers India (SAE India), is organising the 16th Asia Pacific Automotive Conference (APAC 16) for the fi rst time in the country. Scheduled to be held from 6 to 8 October, 2011 at Chennai Trade Centre, the focus of the conference is ‘Sustainable Technologies for Safe and Smart Mobility’. According to the Chairman of the organising committee of APAC 16 and the CEO of Automotive In fot ron ics, Dr A rav ind Bharadwaj, the event will see major national and international participation from the industry, government and the academia. While unveiling the conference theme and logo recently, the President SAE India and Co-Chairman APAC 16 and the Executive Officer, PE, Maruti Suzuki, R Dayal was present along with former President ACMA and Managing Director, Wheels India, Srivats Ram. The Chairman, APAC 16 and the President, Automotive & Farm Equipment Sectors, Mahindra & Mahindra, Dr Pawan Goenka, said that though the Indian automotive industry is in striking distance of accomplishing the objectives laid by Vision 2020, the vehicle manufacturers have to go a long way in terms of completely designing the vehicles. Besides, the Indian OEMs fall short in terms of the latest technical advancements. Conferences like this could play a vital role for India to become a leading player in the design and manufacture of vehicles. He hoped that young engineers in the country would leverage this advantage and propel the capabilities in design. According to Goenka, the world is keenly watching India as it rises to be a global economic powerhouse. In the India growth story, the automotive industry and the Indian OEMs are playing a key role. With increasing globalisation, Indian OEMs are also expanding outside India independently, or through ambitious acquisition besides, moving up in their own world class R&D. Investment in OEM plants usually see a multiplier effect in terms of investment and employment generation in the associated supply chain. Thus, the significance of this industry warrants creation of an eco-system that can support the growth through sustainable technologies and transportation infrastructure. “APAC 16 brings together the Indian auto industry, international experts, key policy makers and academia under one roof to see this dream take shape in reality,” he said. Bharadwaj stated that APAC 16 will witness congregation of a number of experts on sustainable technologies for safe and smart mobility and present an ideal platform for exchange of ideas in several domains including green vehicles, CO2 reduction and ambient air quality, renewa-

ble resources, safety, infotronics and frugal engineering. The conference will be an ideal platform to exchange ideas in areas like engine technologies, green vehicles, collaborative innovations, IPR policy and regulations. The three-day conference will primarily focus on sustainable technology options and creation of an enabling eco-system to advance safe and smart mobility. It will see several technical and plenary sessions, panel discussions and top tech programmes addressed by eminent industry personalities. The conference will also provide an ideal platform for companies to exhibit their products, technologies and services, he said. “We expect the Indian auto component industry to achieve an annual turnover of $110 billion by 2020, a strong growth arm

of Indian automotive industry. It is therefore imperative for us to adopt sustainable processes, as ten years from now, the safety and environment considerations due to growth in the automotive sector shall increase manifold. ACMA has created a Sustainable Technology Committee that aims to promote innovations related to energy efﬁciency and energy conservation,” Ram added. APAC 16 will offer the Indian auto industry a platform to share and exchange ideas with global experts on sustainable technologies for safe and smart mobility, he said. According to Dayal, India is taking its position as an emerging dest inat ion of f r uga l engineering and global players are keen to collaborate with the country. However, India’s path to mass motorisation will be

SIAM and ACMA representatives at the unveiling of the logo

very different from that of developed countries. “We must first develop smart and safe technologies, business models, and government policies that can sustain and pave the way to increased automobile penetra-

tion in the country. SAE India has made remarkable progress over the years and hopes to prov ide a framework for the industry to establish a seamless transportation network in the country,” he added.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

M&M to introduce premium-ultra low HP tractors Abhishek Parekh Mumbai

ahindra & Mahindra’s Farm Equipment Sector (FES) is looking at aiding the farm mechanisation process in the country through creation of an enabling ecosystem of products and technologies aimed at improving productivity. It is looking to introduce products in ultra low (below 20 HP) range as well as premium range tractors providing utmost cabin comfort and performance to farmers in its existing 25 to 35 HP tractor range. “We have already achieved quite a few objectives in terms of integration with ‘Swaraj’ branded tractors within the M&M umbrella. We are now looking to maintain our leadership position and create an enabling ecosystem for farm mechanisation process to bloom,” said Chief Executive, Tractor & Farm Mechanisation, Fa r m Equipment Sector (FES), Mahindra & Mahindra, Bishwambhar Mishra. He elaborated that the tractor division at M&M is working on an enabling ecosystem of making farming more prosperous

and lucrative. The FES is looking to target speciﬁc crop segments and offering all equipments, in addition to tractors, to mechanise the entire farming process. Such equipment would include compact transplanters and tractor-mounted harvesters to be sold at a much lower cost as compared to a full sized transplanters and harvesters. Additionally, the FES is also gearing up to hold regular farm clinics to disseminate knowledge on best farming practices, provide good quality seeds and even fertilisers on a regular basis. The overall idea is to proactively contribute in improvement of the farming productivity through equipments, knowledge and ingredients. Mishra said that the tractor industry growth rate is likely to be more moderate at around 13 percent as compared to upwards of 20 percent seen over the last couple of years. There is a renewed momentum in tractor sales that has been visible over the last three months or so for M&M. Rising interest rates and stagnant Minimum Support Price (MSP) for major crops have ceased to play a major dampener as was expected by the industry players.

Its is noteworthy that the tractor sales were around 300,000 odd units around three years ago and grew to touch around 470,000 odd units last year. It could grow to touch around 530,000 to 550,000 units over the next year or two. Despite this growth in absolute numbers, there are signiﬁcant variations in the level of mechanisation of agriculture among different states within the country. The northern part of the country, especially Punjab, has higher tractor density per hectare compared to central India. “But the industry is unlikely to sustain growth at such levels over an extended period of time,” Mishra added. M&M currently has around 42 percent marketshare in the tractors business with ‘Mahindra’ and ‘Swaraj’ brands. The company’s 15 HP tractor 'Yuvraj', launched last year, has sold around 6,000 units and may cross around 12,000 to 13,000 units in the current ﬁscal. Though the number may look meagre compared to the potential of the product, Mishra is quick to point out that the model is predominantly sold in Maharashtra and Gujarat and is yet to see a nation-

wide rollout. Moreover, the company is in the process of creating awareness on this product segment (below 20 HP) and managing expectations of customers on the capabilities and limits of such a low HP tractor. “We are working on an additional tractor of around 20 HP and will be launching a product in the current calendar year. The segment has good potential but

the customers need to be aware of capabilities and limits of such a product,” elaborated Mishra. There appears to be a gap in the market in horticulture and ﬂoriculture related application for a tractor in the 20 HP range. Even as self ﬁnancing or cash purchase of tractors in 25 HP and above range has gone up to more than 25 percent, tractors in 15 to 20 HP range are bought on cash outright.

DLSI presents ﬁrst MPV-I to Jharkhand Police Indigenously manufactured vehicle is equipped with world class technical expertise Our Bureau Chennai

o fulfi ll Jharkhand’s order for six Mine Protected Vehicle India (MPV-I), Brig Khutub Hai, MD & CEO, Defence Land Systems India (DLSI) handed over the keys of the company’s first MPV-I to the Additional Director General of Police, Jharkhand Police B B Pradhan. DLSI is a joint venture enterprise between Mahindra & Mahindra (74 percent) and global defence and security company BAE Systems PLC (26 percent). Speaking on the occasion, Hai said, “This is a proud moment for DLSI as this is the first such vehicle of its kind indigenously manufac-

MPV-I

tured by the private sector industry being delivered to the police forces in the country. I assure the ADGP,

Jharkhand Police that the MPV-I will meet all the stated parameters and we hope it will greatly

Brigadier Khutub Hai, MD & CEO, DLSI, handing the keys of MPV-I to BB Pradhan, Additional Director General of Police, Jharkhand Police

enhance the operational effectiveness of the police forces in Naxal affected areas of the country.”

In order to ensure smooth induction of these vehicles, into the force, DLSI is also training a ﬂeet of drivers and mechanics of the Jharkhand Police force to ensure optimum use of the vehicle. Moreover, DLSI will also provide complete life cycle support to the police for these vehicles. Built with technology and product capability transfer from BAE Systems in South Africa, world leader in this technology, the MPV-I, Hai said, “The vehicle combines proven ballistic and blast protection capabilities. Built on ural chassis it incorporates a 'V' shaped mono hull chassis which directs the force of the blast away from the occupants, has been tested to withstand the highest level of protection available in the country. In addition to the enhanced protection, the 6x6 vehicle has a powerful engine that ensures high mobility and can carry an entire operational team making it ideally suited for anti-terrorist and anti-Naxal operations. Brig Hai also informed that DLSI has commenced serial production of its Mine Protected Vehicle (MPV-I) at its state-ofthe-art factory at Prithla, near Faridabad which has a present installed capacity of 100 MPV-I per annum.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

Meritor HVS expands product portfolio Bhargav TS Mysore

ysore-based Meritor HVS (India), the joint venture between the Kalyani Group and Meritor Inc of the US has recently launched its two-speed axle in India, offering significant fuel economy benefits to truck customers. The company has already supplied the two-speed axle in small volumes to vehicle manufacturers for field evaluations and is in varying stages of gaining product approvals. The two-speed axle, internally called the Meritor MS13-240

Bhargav TS

Hub reduction axle

has been considered a ‘green axle’ as it helps in improving fuel efﬁciency and increased levels of performance. “Our new twospeed axles have been tested on different applications and found to increase a truck’s fuel efﬁciency by seven to 11 percent while reducing the turnaround time by 15 to 20 percent. This allows the operator to effectively manage vehicle with varying loads and speeds,” said Vice President and Executive Director, Meritor HVS, S Raghunathan during a recent interaction with Auto Monitor. T he Di rec tor ( I nd ia Programmes), Meritor CVS, Siva B Kumar said the driver has an

option to reduce the rear axle ratio, depending upon the load and road grade. This ﬂexibility enables the vehicle to achieve better fuel efﬁciency and turnaround time. The two-speed axle is ideal for a variety of haulage vehicles including 4X2, 6X2 and 8X2 vehicles and is available in a wide range of ratios. The company is also in the process of launching their heavy duty Meritor MT36-610 hub-reduction axle for applications in the growing heavy duty 6x4/8x4 tipper segment, as well as in the heavy duty 6x4 tractor segment. Hub-reduction axles are typically used in demanding mining or

Two speed axle

Testing facility in Bangalore

construction segments as well as for heavy duty tractors with higher powered engines. “These axles have a planetary gear reduction mechanism built into the hub in addition to the main axle differential. This enables a reduction in the size of the main differential gearing, which helps increase ground clearance for off-road use in addition to handling larger torques,” Siva said. The Meritor MT36-610 axle, being launched in India, is based on the company’s European design, which has been in use in mining, construction and haulage applications worldwide for over a decade. This axle has been fully re-engineered by the Indian engineering team for higher load conditions seen on Indian driving conditions. The company currently supplies over 600 axle equivalents per day from its plant in Mysore and offers a wide range of solo axles ranging from four to 18 tonnes GAW R (Gross Axle Weight Rating) and tandem axles ranging from 24-36 tonnes GAWR. Managing Director, Meritor India, Chris Villavarayan said, “We are in the midst of a major expansion, which includes investments of over $60 million in Asia Paciﬁc, mostly in India and China over the next two years. A major part of our investment is going towards adding to our footprint, growing our experienced engineering teams and expanding our testing capabilities.” The company has a strong presence in the domestic market for about thirty years with its manufacturing facility near Mysore and a Global Technology Centre in Bangalore. Starting about eighteen months ago,

Chris Villavarayan, MD, Meritor India

Meritor embarked on an aggressive revamp and expansion of its axle and brakes products for the domestic market and also established a testing centre in its ofﬁce in Bangalore. The company turnover is expected to cross `1,000 crore this year. The company’s aftermarket division focuses on offering replacement parts for drive axles, trailer axles, braking systems and drivelines for heavy commercial vehicles. As part of its expansion, this division has recently opened a large parts distribution centre in Pune to cater to the needs of OEMs and aftermarket distributors. The company is also entering the off-highway market in selected segments and have already received pilot orders from few manufacturers to supply axles. Meritor HVS is a leading manufacturer of commercial vehicles brakes in India offering a full range of S-cam drum brakes and air disc brakes for light to heavy commercial vehicle and trailers. Meritor Inc is one of the global leaders in providing advanced drivetrain, mobility, braking and aftermarket solutions for the commercial vehicle and industrial markets.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

AMW to focus on trucks, ﬁll product gaps Abhishek Parekh Mumbai

MW (Asia Motor Works) is looking to notch up more than 100 percent growth in the MHCV segment in this ﬁscal and is gearing up to put the necessary supply chain and distribution network in place. The company has started manufacturing tipper bodies, frames, cabins and signiﬁcant proportion of welded components and sheet metal components for its trucks. “Though we have sought the assembling route to make and sell trucks, we are doing as much of ‘manufacturing’ as any other major truck manufacturer in the country,” according to Managing Director, AMW, Anirudh Bhuwalka. Even as most manufacturers are moving to assembling models, the relation-

ship of the truck manufacturers and their suppliers differ primarily based on the size or volume of sales that the concerned truck manufacturer can achieve in a month’s time. The company sources its engines across vehicle range from Cummins India, gear box from Eaton and ZF and axles from Meritor. The ‘assembly’-led manufacturing strategy would not change in case of lower tonnage segment but Bhuwalka is quick to point out that the company is currently focussed on deepening and widening its presence in 16-49-tonne segment within the commercial vehicle sector. Though company has plans to enter the one tonne segment and had even displayed the prototype of its small commercial vehicle at the previous auto expo

Anirudh Bhuwalka, MD, AMW

in Delhi, it has decided to focus on the heavy commercial vehicle segment at this stage. “We are looking to have good product bandwidth by launching most or all products in 16 to 49 tonne segment over the next 16 to

AMW plant lineup of an assembly

24 months and then look for additional opportunities once this is achieved,” said Bhuwalka. The company sold around 7,000 units in the last ﬁscal and notched up a

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turnover of around `1,000 crore. Currently, Bhuwalka claims to be selling around 1,000 trucks a month and is hoping to notch up a volume of around 20,000 to 22,000 units in the current fi scal. The company has around 81 dealers across the country. Truck manufacturing essentially relies on six different aspects and the key aspect among these is assembling of components. Typically a truck manufacturer would make the engine, the gear box and the axle in-house. But even globally, most truck manufacturers have moved away from manufacturing the powertrain components and are increasingly focussing on outsourcing these components in order to focus on designing, integration, assembling, distribution and after sales servicing. He further elaborates that around 10 percent of the total component inputs for its trucks is procured from China and the company does evaluate from time to time on imports of components from China or any other country. He further adds thatwith the saturation likely to creep in the domestic market in China, Chinese vehicle and component manufacturers are likely to bid for a major entry into a growing market like India, he said. “Commercial vehicle sales have just been coming off their high mark and appear to be tapering off. There could be slowdown, especially in the haulage or cargo segment if the economy slows down, but the mining and construction segment continue to be robust,” said Bhuwalka. He added that infrastructure projects being planned now and in the near future would have a significant impact on the demand for tippers and other special application trucks over the next 12 to 18 months. Rising interest rates are likely to have a dampening impact on the CV sales going forward. The growth in the CV segment is likely to be positive this fi scal given the current scenario. The company derives around 70 percent of the sales from construction and mining segment trucks and hence there has been limited adverse impact of rising interest rates on the company’s sales. The company manufactures medium and heavy commercial vehicles for the haulage and specialised segments including mining, construction and realty sectors at its manufacturing complex in Bhuj, Gujarat. The plant has an installed capacity of 50,000 trucks per annum. AMW has a capacity of 12,000 fully built tippers and dumpers and 4,000 trailers per annum in addition to the truck manufacturing capacity.

16 - 30 September 2011

CV SPECIAL

Auto Monitor

HM veers into CV segment Nabeel A Khan Kolkata

Manoj Jha, MD, Hindustan Motors

and another one on the Winner platform, which is again a passenger carrier. We see both as important products as last mile connectivity for passengers, both in rural and urban areas. We are working on achieving both the products by around November this year,” Managing Director, Hindustan Motors, Manoj Jha told Auto Monitor in an exclusive interview. A pickup as a concept is yet to mature in India when compared with South-East Asia. Even in a highly developed country like Japan, Korea pickups are available in very large numbers in both, passenger and cargo transportation. The vehicle manufacturer is very optimistic about the segment that will create huge opportunities here in India. A change in this direction has already been witnessed in India and HM is confident of having more movement in this segment of vehicle. Jha added, “Look at the one tonne small truck and how it has transformed over five years! If someone was to talk about the one tonne vehicle five years ago, no one would have predicted the same. Thus we see a huge potential in the pickup segment and we are sure of achieving success.” While the company sees competition in this segment, it feels that it is still manageable compared to the passenger car segment. HM has recently launched a 0.8 tonne commercial vehicle (goods carrier), Veer, in the eastern part of the country and plans to take it pan India in a few months. The vehicle maker chose eastern India fi rst because it has traditionally been a strong market for the Ambassador. The company is taking a different route for marketing the vehicles. In July, it had initiated a road show for Veer and Winner and received good response from

Photographs: Nilayan Dutta

industan Motors (HM), the ﬂagship venture of CK Birla Group is all set to launch commercial vehicles (passenger carrier)by November this year. The new vehicles will bear the Euro IV complaint diesel engines and the two vehicles are in the advance stage of testing at company’s Uttarpara facility. The Euro IV diesel engines are being mounted and tested at Uttarpara, which will go in the Ambassador as well as in the entire range of commercial vehicles including the Winner, Veer and the two new upcoming products. “We are looking at two more products—one on Ambassador Platform that will be a commercial vehicle for passenger carrier

eastern and north-eastern India. Rather than going only via dealerships, it is taking the Veer directly to the customers through road shows in the respective markets, where it wants to launch the product for the customers can get a touch-and-feel of the

product directly. However, the products will also be available at its dealerships. The company cited a few reasons for the volume constraints. One issue is that the products did not have a Euro IV compliant diesel engine while all the major

segments. From t hat point of view, the vehicle manufacturer is not able to cater to the large part of the changing profile of the Indian market. The second constraint is that it has cut down on the volume of production as developing new products The Veer varients recently launched on the Ambasador platform requires a change Ambassador markets have turned in the manufacturing processEuro IV in diesel, thus there has es. However, it is gearing up been slump in the demand. to retain those markets and Although the company has spike up the production and a Euro IV complaint engine sales also, with the introduction in petrol and CNG, they cater of the new products includto shrinking markets, as dieing the Euro IV-complaint sel engines are reigning across diesel engine.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

Eaton to supply MLocker to CV segment Bhargav TS Chennai

aton Cor porat ion is planning to supply locking differentials, meant for off-roading applications, to heav y commercial vehicles. Earlier, the company has launched the locking differential as an application for SUVs and is now entering the commercial vehicle space. During a recent interaction with Auto Monitor, the Executive Director-India, Automotive Division, Eaton, Ramachandra Rao said, “We are supplying the MLocker to Mahindra SUVs for their overseas markets; it is thus found on Mahindra Scorpio in South Africa, US and Australia. To further penetrate the Indian market, Eaton is talking to truck manufacturers and SUV manu-

Ramachandra Rao, ED & Raja Kochar, MD, Eaton India

facturers in India for the supply of MLocker.” Locking differentials have advantages like providing improved traction, towing and off-road performance. They also exhibit the ability to outper-

form a four-wheel drive vehicle's traction performance in certain driving conditions, eliminating the need for four wheel drive system and subsequently reducing the vehicle weight and improving the fuel economy and signiﬁcant-

MLocker by Eaton

ly reducing the cost. Some of the important application areas for locking differential systems are medium and heavy-duty trucks, construction, mining, agricultural, forestry, defence and specialty equipment vehicles.

The MLocker can be utilised on both rear wheel drive and front-wheel drive transaxles. It is compatible with ABS and ESP systems. The Elocker, is manually engaged by the driver by pressing a switch, and can be packaged with a transaxle. Providing a full lock axle at the touch of a button, the ELocker could be fitted on front wheel drive passenger cars. Providing locking differentials either automatically or on-demand, Eaton’s locking differential systems will be made available in the aftermarket too, Rao said. The ELocker system, which according to him, can be fitted on a variety of front wheel drive passenger cars available in the Indian market. Stressing upon aftermarket penetration, he explained that the company is exploring aftermarket opportunities for SUVs and passenger cars. One way would be to have the system fitted by the respective dealers with the authorisation from the manufacturer. Managing Director, Eaton India, Raja Kochar said, “We have set a goal for the Indian market and are focussing on products which are more fuel efficient as well as products that are available outside India. But now we are considering India for localisation, so our key initiatives here are leveraging our engineering centre.” The company has also launched the next-generation variable valve-train to improve fuel efficiency in the engines. This new variable valve-train could be accommodated in the high-speed overhead camshaft engines that help in valve actuation and to utilise the power more efficiently. If the power is not required then the valve actuation helps in reducing the fuel consumption. “This new fuel efficient product will prove to be of maximum value to our customers. This move will enhance our business presence in the market and compliment the wide product portfolio that already exists in the country,” Kochar said. Currently, the company manufactures six-speed and nine-speed transmissions at its Ranjangaon facility near Pune, where it has the capacity to produce AMT transmissions as well. Eaton also has its integrated test lab for its vehicle and hydraulic products at Ranjangaon truck components plant. The lab can conduct hardware test to validate current and future designs for both global and international products. It can test numerous hydraulics components such as gear, piston pumps, steering control units and valve for performance and endurance limits. In addition to the hydraulic components, the lab has capabilities to test vehicle products such as valve train, synchronisers and roll-over valves. Eaton has four manufacturing facilities in India, all of which serves the country’s expanding domestic market as well as some of its global requirement. Currently, it supplies transmissions to Tata Motors, AMW and Mahindra, and supplies its valves to Suzuki, Ford, Mahindra & Mahindra, Cummins and Tata Motors. It has set a sales goal of $500 million in India by the end of 2015, implying trebling its current revenues in the country.

2004

2002

100th Volvo Bus rolls out in India

2005

1000 Volvo Buses in India

Volvo Buses spread across India

2008

2009

2011

A ‘Complete Bus Company’ with a new plant in India

Volvo City Buses across 10 cities

Exports to South Africa

www.volvobuses.co.in

volvo buses. driving quality of life

Bus with 2001 Inter-city True-bus Chassis

Launch of the first

to SAARC 2003 Export countries

becomes a 2004 Volvo ‘Ticket Brand’

of Volvo 2006 Launch Low-floor City Bus

brings India’s 2008 Volvo first Multi-axle Bus

2010

Launch of Volvo CNG City Bus

continues to change, the public transport As India cont will change for f better. And Volvo Buses is committed tto lead this change for a safer and world. friendlier wo

with the foresight of our customers, It took a vision along w authorities and many stakeholders to make passengers, authoritie passengers true. Together, we helped the idea take the dream come true shape and drive tthe change.

10 years have gone by, but think back how 10 years ago, just even one Volvo bus made news. Think today and it’s just another day when thousands thous of Volvo buses ferry people across and within cities, bringing joy of travel.

That s when the first true bus arrived. And changed the way That’s people would experience experienc bus travel...forever.

And it all started happening...in 2001.

Remember the days when buses were more like trucks. You wished for a little more comfort than the rough rides. You wished you could arrive fresh and happy after a long journey.

HOW THE MILES HAVE JUST BREEZED BY.

REMEMBER?

DO YOU

Auto Monitor

VE CV to supply rear engine buses to GSRTC Shambhavi Anand New Delhi

E Commercial Vehicle (VE CV), a 50:50 joint venture between the Volvo Group (Volvo) and Eicher Motors, has bagged an order from Gujarat State Road Transport Corporation (GSRTC) to supply rear engine semi-low-ﬂoor buses. To start with, the company will be supplying 20 buses to the corporation within the next two to three months. “We started working on the project earlier this year and will be able to supply to the GSRTC within the next two to three months. The buses will be fully built units and will have semilow-ﬂoor,” CEO, VE CV, Vinod Aggarwal told Auto Monitor. The company sells buses under two brand names—Skyline and Starline. Its strength lies in the school bus segment where the sales is seasonal. “We work with

16 - 30 September 2011

CV SPECIAL

four to five bus body builders to keep up with the demand,” he said. The company has increased its market share to ten percent last year from around seven percent few years ago. V E CV has five business units—Eicher Trucks and Buses, Volvo Trucks India, Eicher Eng i neer i ng Component s, Eicher Engineering Solutions and the Medium-duty Engine Project. In the truck business division, the company has products in the range of fi ve tonnes to 40 tonnes gross vehicle weight (GV W). Last year, it saw maximum growth in the fi ve to 12 tonnes categories. While the company is aiming to steadily increase the market share in the same categories, it hopes to strengthen its presence in the heavy-duty segment where it has about three percent of market share. The company churns out around 650 units per month and the plan is to ramp up to about

Mahindra launches new Bolero Our Bureau Mumbai

Vinod Aggarwal, CEO, VE Commercial Vehicles

1,000 units in the near future. Ditto is the case with tractortrailer segment, in which the company currently sells around 15 units per month. Asked if capacity has been the constraint for the limited volumes, he said it was due to non-representation in certain geographies. Currently, the company has chalked out plans to increase its sales and service—both 2S and 3S networks across the country. At present it has 210 dealerships and the plan is to add at least 40 more every year, in the next four years, which will take the total number close to 400. VE CV has recently introduced a 6x4, multi-axle tipper—Ter-

Terra 25 in tipping condition

ahindra & Mahindra launche d the ‘New Bolero’, powered by m2DiCR engine with refurbished styling and front at `6.33 lakh. The new Bolero, available in three variants— SLE, SLX & ZLX, starts at an attractive price of `6.33 lakh (ex-showroom Delhi, SLE BSIV variant). Since its launch in August 2000, the Bolero has grown at a compounded annual growth rate (CAGR) of 27 percent. It has sold 83,121 vehicles in the last ﬁ scal. It incorporates new features including digital cluster with Driver Information System (DIS) and a digital engine immobiliser, ra 25. Launched in selected locations, the company is now looking at increasing the sales volumes. “We have sold 141 units of the product and are working on increasing this number,” Aggarwal said. The company also has a 25 tonne 6X2 twin axle tipper—Terra 16. The tipper segment has been doing good numbers off late, which according to Aggarwal got a push due to

new dashboard, wood-ﬁ nish central console and new seats and upholstery. The new m2DiCR engine combines the common rail engine technology along with the low operating cost of the DI engine. The exterior is enhanced with new bumpers and a signature front grille. The exterior of the Bolero is complemented by its premium dual-tone interiors.

The new Bolero

the construction activities going on in a large scale across several parts of the country. Last year, out of the total tipper market of 40, 000 units, 6X4 tippers constituted 25, 000 units and 6X2 represented the rest. Tippers themselves contribute about 45 percent of the commercial vehicle segment. The company has a market share of 10 percent in the tipper business in the country. The new plant for engines coming up in Pithampur will be ready by the end of 2012 and the ﬁ rst set of engines will roll out by the second quarter of 2013. While the company intends to manufacture 85,000 engines from the plant at its full capacity, it will start with initial volumes of 25,000 units. Out of the total 85,000 units, 30,000 units will be manufactured as base engines with Euro VI standards and upwards. These engines are meant for exports to France and some of these will cater to Volvo Penta for non-automotive applications. To support faster development and also reduce testing time, “We are setting up a sophisticated test facility,” he said. Engines for domestic market will be BS III and BS IV complaint. The plant will also take care of other requirements in the Asian market. About the Eicher Engineering Components division, he said the company makes drivelines, transmission, and gear boxes for off-road applications, which is exported to the US. This is primarily for in-house consumption and caters to few other customers in India. It is exploring opportunities to supply parts to Volvo group. “Our strategy is to tap the opportunity more and more,” he said. This division has three plants—in Thane, Dewas and the special economic zone of Pithampur. It also caters to few other vehicle manufacturers including Mahindra and Mahindra, TAFE, Escorts and John Deere. When asked about Eicher Engineering Solutions, he stated that though the turnover of the division is about $12 million, the potential is large. Headquartered in the US, this business division has delivery centres in India and China. “We specialise in CAE designs and plan to take up more work for Eicher. The division also caters to some non-automotive requirements,” Aggarwal said.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

Nabeel A Khan Kolkata

olkata-based commercial vehicle component maker—Baynee Industries, is re-aligning its strategy to improve its proﬁt margin through better technology and lean manufacturing. The component maker is also gearing up to encash business opportunities through forward integration. It has recently started supplying clutch housings for trucks and commercial vehicles of its main OEM customer—Tata Motors in Lucknow. “We have recently started supplying these housings to Tata Motors' Lucknow plant. Earlier we were just concentrating on its Jamshedpur facility,” Director, Baynee Industries, Devanshu Daga told Auto Monitor. The company has put up a new

shed inside its plant in Jamshedpur to accommodate the new demands. It was making clutch housings for almost all the models of Tata Motors’ trucks and commercial vehicle and it has commenced manufacturing of drive gear housings also from here. Though the company has some supply constraints, Daga expects that by the end of this ﬁ nancial year new orders will contribute about 25 percent of the company's revenues. It supplies around 4,500 clutch housings per month from the Jamshedpur plant, utilising around 70 percent of its existing capacity, to Tata Motors. This may go up to 6,000 units a month by the end of FY12. Baynee Industries currently gets about 95 percent of its total revenue from CV manufacturers including Hindustan Motors, Tata Motors, Mahindra & Mahindra,

Ashok Leyland and Eicher. Currently, it is not looking at the export market as it is not competitive in terms of pricing, reason for this being lack of backward integration. The component maker elaborated that the reason to compete within India is that the global prices are eight to 10 percent cheaper. However, the new shed in Jamshedpur will have forward integration with the help of substantial high-end equipment like value addition machines, vertical turning laths, a horizontal machining centre with an investment of around `three crore. The latest equipment will also help reduce dependability on human resources. “Right now we have got into a long term association with Tata Motors for machining carrier housings for their axles. We would

Photograph: Nilayan Dutta

Baynee gears up for higher proﬁt margin

Devanshu Daga, Director, Baynee Industries

be supplying about 100 units per day. We have created a capac-

ity for that and this is going to be only convergent; we will get material from the customers, add value to the same and we will give it back to them,” Daga added. The component maker is gearing up for flexible manufacturing processes. The new machines being installed are not going to be utilised for manufacturing single components, but be used for manufacturing a variety or variation of products. The manpower is trained to work on multiple processes thus increasing efficiency. As the company is majorly into manufacturing clutch housings, in case of a cut in the demand for the product, it is prepared to switch to any other component from the same plant. Looking at the viable opportunity in terms of value addition of components, it wants to utilise its USP in fields like engine blocks and value addition processes like sheet metal robotic wielding. This year has been exciting for Baynee and the company has added some equipment while trying to realign its plant, as well as put its best practices in place for higher resource efficiency. The group has over 175 people and its turnover in FY11 was `25 crore. The current profit margin is roughly about 10 to 12 percent. With sustainability in the commercial vehicle segment, it is hoping to maintain the growth momentum subject to the government policies and input prices.

Filling The Bumps The company has taken another step towards solving one of main constraints at its Jamshedpur plant: power. It has tied up with a private utility supplier to get power supply and with this move it hopes that there will be no load shedding. It is paying them a one-time fee and the bill will be slightly higher but will be beneficial in the long term. Labour is another big constraint leading to higher automation by the company. The new shed in the Jamshedpur will have higher automation to minimise dependability on labour. The EOT cranes and other equipment in this new shed will also be completely helper-free. Rather than keeping one or two helpers per machine, the cranes will reduce the processes to one or two helpers for the entire shop floor. It has already been putting CNC twin palate machines, which have helped increase efficiency. The manufacturer has two plants, one each in Kolkata and Jamshedpur.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

Piaggio gears up for enhanced presence Our Bureau Mumbai

iaggio is looking to enhance its presence in small commercial vehicle segment and export these vehicles to meet its Italian parent’s requirements. It is also looking to have a larger presence in two-wheeler segment in India. The company launched the ‘Ape Mini’ last year priced at `1.73 lakh (ex-showroom Pune) pitching it against M&M’s Gio. The SCV (Small Commercial Vehicle) is powered by a 0.441 cc (0.44 litre) engine with payload of around 500 kg making it suitable for range of applications. The company’s current range of three-wheelers is powered by a 0.4 litre diesel engine. It is also evaluating a bigger portfolio of motorcycles in India even as it

gears up for the launch of the ‘Vespa’ scooter brand early next year.

Gauging Potential The company is considering bringing in other brands like the Derbi, the Gilera and the Moto Guzzi in India even as it is conducting feasibility study to understand the market potential for these bikes.

Piaggio’s ‘Ape Mini’ provides with a missing link in the offering for small traders as well as captive goods transportation segment, Managing Director, Piaggio Vehicles, Ravi Chopra said in an earlier interaction with Auto Monitor. He added that there was a major gap in the market with no goods carrier available below `two lakh until M&M’s Gio launch but there is still ample space in the segment for more players to offer products in `1.5 lakh to `2.5 la k h ra nge. He added that alternative fuel options a nd w ider availability The Ape Mini of three and

Ravi Chopra, Managing Director, Piaggio Vehicles with an Ape Mini

four-wheeled goods carrier will further aid in growing economic momentum across the Tier II and III towns and cities.

Value Preposition The average monthly volume

of ‘small commercial vehicle’ is around 14,000 units per month and growing at around 20 to 22 percent month-on-month. He added that value preposition with smaller sized commercial vehicle has to be very clear, in addition

The company launched the ‘Ape Mini’ last year priced at `1.73 lakh (ex-showroom Pune) pitching it against M&M’s Gio. It is also evaluating a bigger portfolio of motorcycles in India of the ‘Vespa’ scooter brand early next year. The company is also focussing on exports of three wheelers to wider availability and service network. These factors are likely to act as a major barrier to entry for players seeking an entry into the segment.

Expanding Network The company is planning to expand the existing dealership network by around 50-60 new dealers over the next one year. It currently has a network of 760 touch points including exclusive dealers and service centres across the country. It is investing around Euros 30 million in financial years 2011 and 2012, with the goal of achieving revenues of approximately Euros 70 million by 2015 and sales of approximately 110,000 scooters. At its Baramati plant in Maharashtra, the company is investing in capacity for a one litre and 1.2 litre diesel and turbodiesel engines meant to power commercial vehicles to be marketed in the European and Asian markets. The engines are meant for captive consumption for now, as they would drive the group’s objective to be a dominating player in the premium small commercial vehicles space. However, he did not rule out the prospect of supplying the engines to other markets and non-Piaggio customers. The company sold 1,158 units in the good carrier segment in July this year and 4,087 units in the current fiscal, a growth of 28 percent compared to the corresponding period in the previous fi scal. It also sold 16,552 threewheelers in the month of July and 59,087 three-wheelers (around 1.58 percent growth) in the current fi nancial year.

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Auto Monitor

16 - 30 September 2011

CV SPECIAL

Long term outlook for CV sector positive: Force Motors Abhishek Parekh Mumbai

he long term outlook for the domestic commercial vehicle segment continues to be very positive, according to Chairman, Force Motors, Abhay Firodia. He said that though rising interest rates may temporarily dent the demand for commercial vehicles, any major structural change in the segment is unlikely. Force Motors has a equal joint venture with Germany’s MAN Nutzfahrzeuge AG. The JV operates a facility in Pithampur near Indore in Madhya Pradesh with an installed capacity of 24,000 trucks per annum of which nearly half the production is earmarked for exports through the German

Abhay Firodia & Prasan Firodia

partners’ sales arm globally. The range of products manufactured includes mining & construction tippers, haulage tractors and multi axle trucks, from 16 tonne to 49 tonne GVW. MAN Force is logging a volume of around 450 units every month and is looking to cover gaps in

the vehicle portfolio with launch of additional products and solutions in the coming months. The JV (MAN Force) achieved a turnover of `929.08 crore in the last ﬁscal ending March 2011, according to the annual report of Force Motors. The JV sold 3,161 trucks in the domestic market and exported around 809 units representing an increase of around 115 percent in overall volumes in the last ﬁscal over the previous year. As of March 2010, the JV has an accumulated book loss of `268.06 crore. The report further points out that ‘the performance of the JV for the relevant period was not as expected’ and that Force Motors is under discussion with the German partner to resolve 'differences'. The differences between the joint venture partners have aris-

en for two key reasons, according to the report. The joint venture was formed in order to offer vehicles to the domestic and global customers with appropriate technology and exporting the vehicles through MAN’s distribution network. The report further goes on to point out that one of the key considerations for going ahead with the project was export commitment of up to 10,000 vehicles per annum via MAN’s global network and the project has not met that expectation. Since both partners have invested signiﬁcant resources including technology for engines, gearboxes and cabs by making payments to MAN and ZF, the success of the JV has assumed a priority for both partners. Firodia refused to comment on the growing differences at

MAN Force in a recent interaction with Auto Monitor and pointed out that both JV partners are in regular dialogue. Force Motors has a portfolio of utility vehicles including the Tempo, the Metador, the Trax and the Traveller. It recently forayed into the passenger vehicle segment with the launch of its SUV ‘Force One’ at `10.65 lakh as a standard variant powered by 2.2 litre CRDI Daimler engine. It has earmarked total capex of around `1,000 crore across product range. The company registered turnover of `1691.84 crore for the year ending March 2011 as compared to `1,075 crore for the previous fiscal. The net profit of the company stood at `58.61 crore in the same period as compared to `60.42 crore registered in the previous fiscal.

MK Autocomponents to invest `10 crore for facility Akmal Rahman Chennai

K Autocomponents, ma nufact urer a nd exporter of starter motor parts, brake components, transmission parts and fuel injection pump parts, will set up a new production facility in Chennai. This will be its sixth plant to manufacture commercial vehicles components. The company will invest around `10 crore for the new facility, which will commence production by April 2012. The plant will be spread across 60,000 sq ft near Sriperumbudur. In the recent interaction with Auto Monitor, MD of MK Autocomponents, Sriram P said, “We are gearing up to meet the demand from the major OEMs

Sriram P, MD of MK Autocomponents

like Ashok Leyland and Daimler. At present, the company produces 11 lakh components a year from its Ambattur facility and expects to grow by 200 percent after the inception of the new plant. It manufactures fuel injection components, cold forging, precision machined, pressure die-casting, transmission components, brake components, auto slack adjuster parts and autoelectrical components.

The company supplies highprecision components for fuel injection pumps to Delphi-TVS and Stanadyne Amalgamations, steering system components to TRW Automotive Japan and Rane TRW. It also supplies transmission and engine components to Royal Enﬁeld, Rane TRW and Woosu Automotive, auto slack adjusters and braking system components to Ashok Leyland, Brakes India, Knorr-Bremse and Amalgamations Valeo Clutch. Last year, its received orders from Daimler for engine parts, transmission parts and axle assembly parts. “We are also developing 38 different parts for Daimler. Out of that, the ﬁ rst stage samples are completed and the second stage is in process, and we will be completing it by end of September.” he added.

The company is expecting more orders from Daimler after the start of production in the new plant in 2012. It has recently started its R&D centre in its group owned engineering college called Chennai Institute of Technology. The centre will work on developing auto components for its clients and the major focus will be in manufacturing process, which will help the company to manufacture the product at a competitive cost. Speaking about the R&D facility, Sriram said that the focus on R&D is very less in a normal environment as the company gets busy in meeting the demands of customers. By investing in equipment and giving opportunity to develop components at the institute, the ﬁ rm will provide a platform for students to get trained and for

placements. In addition, it will help the company to recruit young engineers in the future. It is planning to set up simple automation for cold forging facilities. It has recently singed an MOU with Kamaz Vectra for manufacturing 25 thousand components every month. It is setting up a dedicated manufacturing line for Kamaz Vectra and Tata Motors to make brake components. It is also supplying brake components to major companies like KnorrBremse, Wabco and Brakes India. Currently, the company is supplying around 60 percent of its products for commercial vehicles. MK Autocomponents recorded a turnover of `35 crore last year and it is expecting a turnover of `45 crore by the end of 2013 after establishing the new plant.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

JCBL to expand cargos, introduce light tippers Shambhavi Anand New Delhi

unjab-based bus body builder JCBL, which also manufactures tippers, tip trailers and other special pur-

pose vehicles, is planning to expand its product portfolio in the niche markets of the cargo segment. The company is planning to introduce new products in the cargo range. It has also introduced light weight tip-

Bus bodies manufactured by JCBL

Rishi Aggarwal, MD, JCBL

felt in the next quarter. But it might even be cyclical slowdown. We will have to wait and watch for the next four to ﬁve months to judge the market. Our plant in south India is booked for the next two months. Capacity expansion is a long term plan and if we expect a slowdown for six to seven month then it should not affect the plans.

How much has the recent slowdown affected the CV segment? The effect of the slowdown has not been felt in the CV industry. None of our customers seem to be calling off their expansion or investment plans yet. The result of the slowdown may be

The implementation the Bus Code in April this year has been deferred. What is the reaction of the industry? We are very disappointed with the bus code not coming in. The builders who had geared up for it and built in that cost into

pers which have been designed in-house. “The objective is to look for

niches in the cargo segment and expand our presence in those areas,” Managing Director,

their processes like homologation and facility upgradation are highly disappointed. It makes us non-competitive against the ones who have not geared up. Initially the code was supposed to come in 2008 but was delayed till 2011; we are already three years late. The moment you bring something in the ambit of norm, the standards go up and the industry expands. By letting it loose it is left fragmented, safety is at stake. Roads are becoming better, which will increase the speed at which people drive but safety not matching up. China brought it 20 years back and it changed the industry. JCBL, Rishi Aggarwal told Auto Monitor. Citing fast growth and excessive demand as the reason for focussing on the cargo segment, he added that the growth seen in this business is three times as compared to last year. One of the major reasons for this growth might be the increase in the amount of construction that is taking place in most parts of the country as a result of the growing economy. JCBL has increased production in its Chennai plant to be able to meet demand. The capacity of this plant is now fully utilised. Aggarwal further said that certain regulations like absolute restriction on overloading of cargos in states like Chattisgarh is also one of the reasons for the boost. The company is inclined towards creating a strong presence in the speciality segment and not in commodity. Currently, it produces cargos only in the southern part of the country. Its next step may be to produce in the northern region also. JCBL has also introduced light weight tippers and tip-trailers to the market. “We introduced a tipper which is one-and-a-half tonnes lighter than the normal tipper, which means another one-and-a-half tonnes payload to the customer. We have also been able to reduce 800 kg from 14 cubic cm tippers improving its ruggedness. The cost of these products is higher and it was difficult to sell initially. But customers who bought them have found value. Some of them have also placed repeat orders. These high value products have been designed in-house by one of our group companies.” On the body building side, the company has had a 25 percent growth over the last year. It has delivered 25 buses from its new plant at Vijaywada in the fi rst month of its operation. “Our bus business is an all time hit. We can feel a slight taper down due to the ongoing slowdown. But this might also be cyclical. We will go ahead with the commitments that we have already made in the market,” Aggarwal said. It produces buses starting from low cost to the luxury segment. On the component side, which is the JCBL’s third business vertical, the company has doubled its business. It exports sheet metal, seats, fibre glass, lock hinges among other components to the European market and elsewhere. It is also setting up a new line for the same in its Ambala plant which is spread across 40 acres. It may also set up a similar line in it Chennai plant.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

Tata Motors maintains cautious outlook Our Bureau Mumbai

ata Motors is maintaining a cautious outlook on the commercial vehicle segment growth in the domestic market. Though interest rate and economic uncertainty are likely to be dampeners for the truck demand, the CV sector could still end on a positive note for this ﬁscal. “Going forward, we need to watch for some months before we can be more conclusive on the market growth. Interest rates are a concern at this point time. We will wait and watch before we can get some feelers,” said the company spokesperson. Tata Motors’ commercial vehicles segment registered sales of 196,887 units in the domestic market, a growth of around 17

percent in the current fiscal, as of August, over the corresponding period last year while M&HCV sales stood at 78,079 units, a growth of eight percent over corresponding period last year. One of the disappointing aspects of the company’s road to higher growth: The world truck project has failed to live upto expectations. Most of the company’s suppliers are disappointed with the volumes garnered by Prima range. Though the company officials maintain a brave front when they emphasise that there are repeat orders for the Prima range with the domestic and the international customers but uncertainty on the company’s strategy persists. “We are planning to launch several new models of the Prima tractors, tippers and trucks in this fi nancial year. The details will be

shared in due course,” according to the company spokesperson.

World Truck Project In February 2011, Tata Motors won a prestigious order for sup-

plying around 250 Tata Prima trucks to Linfox Logistics, the largest privately owned supply chain solutions company in south Asia. Linfox will ply these trucks in India. It received another pres-

tigious order for 56 Prima trucks from Toll India, the Indian arm of Toll Logistics, an Australian logistics major. The company has been regularly getting orders for 10-20 units as well as several repeat orders from existing and new customers for the Prima range. The bus industry has shown growth of eight to nine percent so far and is expected to grow by around ten percent overall this fiscal. Tata Motors has developed a hybrid bus on CNG electric power combination and is also working on the diesel-electric combination. The company has developed parallel hybrid bus, which was presented to the Delhi Transport Corporation (DTC), for demonstration during the commonwealth games, CNG-electric hybrid low-floor ‘Starbus’. This was the fi rst time in India that hybrid buses were used for public transportation.

Project Range Tata Motors’ Marcopolo, an associate company of Tata Motors, has developed the CNG-electric hybrid ‘Starbus’ for cleaner and more efficient urban transportation. Two Tata CNG-electric hybrid low-floor Starbuses have been given to Bombay Electric and Suburban Transportation (BEST) on trial in Mumbai. The company official claims that these buses have helped BEST save more than 10 percent on fuel and lower emissions by 30 percent, as compared to conventional buses. CNG- electric power buses have covered a very positive trial at both DTC & BEST of more than 50,000kms. Tata Hispano Motors Carrocera, Tata Motors' subsidiary in Spain, has won a prestigious order for supplying 10 CNG series hybrid low-floor city buses, to be built on Tata Motors chassis, to EMT Madrid, a Madrid city public transportation company. The buses will be delivered in 2012. The Tata Hispano CNG hybrid is powered with a series hybrid system and offers substantial improvement in fuel economy and emissions compared to a conventional bus. As a result, the technology leads to lower emissions, thereby contributing to cleaner air and a greener, more environment-friendly commercial passenger transportation application. The vehicle chassis is capable of being integrated with pure electric mode, CNG micro turbine and hydrogen fuel cell in the future.

Forster steps down as CEO

arl-Peter Forster resigned as the Group CEO and MD, Tata Motors due to ‘unavoidable personal circumstances’. He will continue to serve the company’s board as a non-executive member. MD, India Operations, Prakash Telang and CEO, Jaguar Land Rover, Dr Ralf Speth will represent their respective operations on the board. Forster has more than two decades of international experience in the automobile industry and was formerly CEO of General Motors, Europe where he looked after Opel/Vauxhall, Saab and the European activities of Chevrolet. He took over the global CEO at Tata Motors in April last year.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

“We will continue to introduce new technologies”

Bhargav TS How do you view the current situation of the automobile industry in India? There is a bit of a slow down in the automobile industry. The overall growth, as it was foreseeable last year, has not been at the same level, which is natural because last year the industry recovering from the recession, it was experiencing high growth. We are in the growth phase now, but I think it will be balanced— that’s the trend we see in the

automobile industry. This trend is reﬂected in the commercial vehicle industry including the bus segment. Can you elaborate on the bus segment? When it comes to our business, I would say that presently, we don’t see the same trend yet. If you see the long distance coach market, it is more or less not been there for three to four years. And there was consolidation happening in the industry when the market

was down. Operators were not adding ﬂeets for the last three to four years. It was only in 2010 that we saw that the long distance intercity market had started to attract attention. The old players began to invest in new buses and new players also entered this industry. Thus we operate primarily in long distance intercity buses and coaches. What is the response for CNG buses? We are conducting CNG bus trails and I understand that the outcomes of those trails are good. These buses are covering more kilometres compared to the ordinary buses and the passenger response is also very positive on the comforts in our CNG buses. Also I believe that the fuel efﬁciency is also quite

good, so we will continue with these trails this year. Meanwhile we have started establishing contact with our customers in the CNG city bus segment for further sales orders. What is the priority for Volvo Buses in India? At present our focus is in the long distance segment and we are not able to make as many buses. Thus the top priority is long distance buses and not other models. Akash Passey, MD & CEO, Volvo Buses India What is the response for the multi-axle buses and for the first time in India at how do you see this segment the end of 2008. The response growing in the future? is good and I would say that Volvo introduced such buses multi-axle buses accounts for 60 to 70 percent of our output into the Indian market due to additional comforts that have been incorporated into the bus. So all-in-all, it is quite a successful product for us.

Do you see the potential to introduce steerable rearaxle buses in India as the ﬂeet operators feel it could help negotiate shorter curves? We have been the technology leaders in India since 2001. In the last Hyderabad regional auto show, we introduced ‘I Shift’ buses. Thus, we will continue to introduce new technologies including steerable axles. In another couple of years we can add the same to our product range.

Volvo multi-axle bus

Do you see potential in introducing vestibules here? I think there is a great

Bhargav TS

Volvo Buses has completed ten years of operations in India and it has been a memorable journey for the company. It began with 12-metre coaches followed by low-floor city buses, 14-metre long coaches, multi-axle buses and CNG city buses. Managing Director, Volvo Buses India, Akash Passey says the company’s portfolio is growing and the company hopes to reach a volume of about 5,000 units soon. Excerpts from the interview:

16 - 30 September 2011

Auto Monitor

CV SPECIAL

A range of Volvo buses

potential in the Indian market where there are big cities like Bangalore, Mumbai, Pune and Chennai where the population crosses to over ten million. Also, due to the availability of dedicated special corridors like BRTS (Bus Rapid Transits system) in such grow ing cities, there is potential for these kinds of buses. You can gain more fuel efficiency by tranporting a large number of people during peak hours with the help of articulated buses. This BRT system is becoming more and more a reality, and I think the next step will certainly be on some key routes to start with short number of articulated buses. And we are also exploring opportunities on how we as a manufacturer can associate our self with such developments. How has been the journey so far for Volvo buses in India? We are completing ten years in India and it was quite memorable for Volvo buses here. We started with 12-metre coaches then we brought low ﬂoor city buses, followed by 14-metre

long coaches, multi-axle buses followed by CNG city buses. So our portfolio is growing and we been growing in the last ten years at an average range of about 30 to 35 percent year -on-year. We sold around 2,000 buses in the last three years in both city and intercity long distance buses. In the future, we would like to continue an annual growth rate over 30 to 35 percent on year-onyear basis. We also have plans to reach a volume of about 5,000 units.

ers are demanding. So every year, we have to introduce something in India that customers would like as a change. In China, it is more competitive and you can see a new model every three months. For a global organisation like us, it is a good learning that we need to increase our speed of response in terms of introducing new products according to what the market needs. These are our learnings from the Indian market and our learning continues.

Are there learning occurrences from India for Volvo globally? If so, can you share some with us? There is a lot of learning from the Indian market. I can say that the speed of response needs to be much faster in the Asian markets. India and China are the developing countries and so the customer preferences and choices have proved that they are changing all the time. Therefore, in a stable market you could develop and run a product for a very long time with a small changes, but it is not possible to do the same thing in Asia, because custom-

With competition increasing, what are the initiatives that you are taking to maintain your market share? When we entered the Indian market, the prediction was that we can’t sustain in this market for more than two years, because people won’t accept our product. So I think that was a good manifestation that we have done our home work quite well and we brought good products. People started liking our products to the extent and that is the reason Volvo became the ticket to the Indian bus industry. Then we developed a seg-

ment with the low floor buses, which was for the long distance, intercity segment and the air-conditioned city bus market initially. These segments started growing rapidly and our competitors also felt the same and entered the segment with their products and started competing with us. We have the fi rst mover advantage in India, with lot of service setups across the country. When the market is expanding, we have tried to remain aggressive by introducing new products, and at the same time forming a bus company, which is dedicated to buses. What’s more, we are trying to bring the bus centre concept to fi ve cities, so we are trying to offer our customers a better product by having interactive experience with us. Even though many competitors have been coming in for the past two years, we are able to maintain our market share of 70 to 75 percent in the long distance segment. What are your plans to bring in buses running on alternate fuels? A couple of years ago, we

came out with seven to eight fuels and we prepared products for those fuels that were well accepted in the market. It is for the governments to say what they need as a fuel, and we can work towards it. For example in India, the government has said that large number of cities will have CNGs in the future, so that’s why we are now in the CNG market. On the other hand, there are a range of bio-fuels available, so we have to think what is good for our nation and support the vision. Please discuss your short term and long term plans. In the short term, we need to spread our aftermarket service network wider and expand our factory to meet the growing demand for our multi-axle and other coach products. In the long term, of course, we would like much larger share of buses in the segment. We would also like to invest more in India and to create a much wider product portfolio across different price ranges. Our aim is to reach the revenue of over $one billion by 2015.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

New Pfeda plant to meet export demand Nabeel A Khan New Delhi

fter bagging new orders including a major chunk of it from Europe, Polyurethane (PU)-based product manufacturer, Pfeda Synthetics is setting up a new greenﬁeld plant in Greater Noida with an investment of over `six crore. Trial production has already started at the new factory, spread over 60,000 square feet, which is four times bigger than its existing facility. The PU product maker gets around 40 percent of its total revenue from the automotive industry and the rest from moulded furniture products. The company will be able to increase production volume by at least 70 percent once the new unit goes into full operation by the end of this year.

“We have got into supplying steering wheels in Europe for all the major tractor manufacturers there through our UK-based channel partner. We will be manufacturing and exporting it to the Europe, however all the trading in Europe will be handled by our partner,” CEO, Pfeda Synthetics, Harneet Kochar told Auto Monitor. The company was already exporting these products to a few markets like the US, but it was in a very small quantity. After clinching the new deal, it hopes that exports will contribute over 55 percent of its revenue in the coming months. The new capacity will allow an additional production of over 50,000 steering wheels a year. Currently, it makes 80,000 steering wheels every year. The company has also struck an

Gear Knob

GrabHnadle for Ashok Leyland Steering Wheel by Pfeda for JCB

Instrument Pad

‘interesting’ deal with Honda Siel Cars, which was one of the major reasons for this expansion. However, it maintained silence on the kind and volume of the deal. The new plant will be equipped with all the latest technology and maximum automation. According to the company, this plant will help increase the manpower productivity by at least 50 percent. Pfeda is a Tier I supplier for instrument panels and dashboards to Eicher Trucks and Ashok Leyland. It also supplies grab handles, gear knobs and other dashboard elements to Swaraj Mazda. At the LCV level, it is primarily concentrating on interior parts. It supplies steering wheels, door panels and arm rests to JCB's excavator div ision. It has recently got Daimler as its new customer. It claimed to have consistently maintained a growth of 30 percent in the last seven years and it grew in the same fashion in FY11 to touch a turnover of `40 crore. The component maker hopes to grow between 20-30 percent in FY12. Due to an increase in the price of raw materials, the pressure on profit margin will continue. Right now, its profit margin remains at six percent w ithout ta x, which the company would like to sustain. Pfeda does not have any major ramp up plans for its dashboard related products. It is currently producing around 50,000 units of dashboard products per year. The reason being, that it uses the back foaming technology, which is normally not preferred in the car segment in India. This is a soft touch dashboard and is used by high-end products and in India, very few truck makers use it, so the volume is a constraint. The company will continue to focus on the niche market of trucks and LCVs, as it does not have enough resources presently to venture into the passenger car segment. The fatigue in the automotive market in the last quarter is a positive indicator for the company as Kochar said, “I am happy because of the slack on demand, as it helps to control the raw material price. Very fast growth is not good because the raw material prices were going up putting pressure on the bottom line.”

Auto Monitor

16 - 30 September 2011

CV SPECIAL

Commercial vehicle ﬁnancing to witness drop in the growth levels in FY12 Revati Kasture Head, Industry Research, CARE Research Vishal Srivastav Analyst, CARE Research

New CV Finance market

60,000 50,000

FY08

FY09

FY10

FY11

96.3%

94.7%

95.0%

95.7%

40,000

Average Penetration levels

30,000

Average Loan-to-value

80%

78%

79%

New LCV Finance market (Rs cr)

4,776

4,235

6,649

8,976

New M&HCV Finance market (Rs cr)

23,949

14,772

21,617

32,425

New CV Finance market size (Rs cr)

28,726

19,008

28,266

41,402

20,000

uoyant economic condition and rise in industrial and agricultural activities kept the freight movement strong during last two fi scals (ie FY10 and FY11). This led to significant improvement in the utilization levels for transport operators and subsequently there profitability and credit profi le. The commer-

10,000 0 FY09

FY10

New LCV Finance market

FY11

FY12

New M&HCV Finance market Source: CARE Research Estimates

Source: CARE Research Estimates

cial vehicle (CV) industry too beneﬁted from these favourable factors, as domestic demand for CVs observed a growth of around

39 percent and 27 percent respectively during FY10 and FY11 period. This growth was against the back drop of a sharp drop of

25 percent in FY09, due to concerns like slowdown in economic growth, liquidity pressure and rise in interest rates.

Strong Demand Pushed The Disbursement Levels Strong revival in demand also led to healthy rise in the disbursement levels to the CV industry during FY10 and FY11. The delays and defaults in the repayment declined significantly owing to improvement in profitability of transport operators. The healthy business situation coupled with drop in the interest rates also led to improvement in confidence among the fi nancers and subsequently pushed average penetration levels and CV fi nance market size. As per CARE Research estimates, during past two fi scals the disbursements towards new CV sales grown by around 48 percent on y-o-y basis during previous two fi scals i.e. from around `19,000 crore in FY09 to around `41,400 crore during FY11. Rising concerns over slow down in industrial production and increase in fuel cost and interest rates to pull down the growth in CV demand and so as the growth in CV fi nance business during FY12. CARE Research believes, concerns over hike in interest rates and inflationary pressure would slow down the growth in the industrial production by some extent. This is likely to affect the domestic CV demand, which CARE Research estimates to grow at a much lower level of 10-11 percent during FY12 as compared to growth levels witnessed during last two fi scals. This slow down in the demand would affect growth levels observed by CV fi nancing industry during last two fi scals. CARE Research estimates, CV fi nancing industry would grow by 15 percent during this period.

Market Growth CARE Research estimates the domestic CV sales to grow at a CAGR of around 13 percent for FY11-FY16 period. CARE Resea rch believes hea lt hy long-ter m macro-econom ic outlook coupled with increase in government focus towards development of transport infrastructure would taper off short term concerns over rising fuel prices and interest rates. The GC segment would continue to dominate the growth as it is expected to grow at a healthy CAGR of around 14 percent, while domestic PC segment is expected to post a growth of around 6 percent in next five year period. (The report is prepared by CARE Research, a division of Credit Analysis & Research. Views expressed are personal.)

Auto Monitor

16 - 30 September 2011

CV SPECIAL

Kiswok strategises to spike volume for sustainability Nabeel A Khan Kolkata ne of the pioneers of foundry in India—Kiswok Industries is on verge of fi nalising its plans for a massive expansion in the next five years to propel the growth via the volume route. The strategic change comes due to increasing pressure on the profit margins. Established in 1957, the company currently produces 3,500 tonnes of casting every month and aims at 40,000 tonnes of casting a month in a phased manner. The company will soon close the deal to acquire about 400 acres of land in Kolaghat on the outskirts of Kolkata for a new greenfield plant. The company is investing `40 crore for acquiring 400 acres of land in Kolaghat.

Photographs: Nilayan Dutta

Mayank Kejriwal, Director, Kiswok Industries (Above-Right) Glimpses of workers at the plant

Kiswok is also planning to enter into assemblies—like axles and sub-assemblies like break drums for which it is scouting for a good foreign technical partner. The Kolkata-headquartered

manufacturer has already begun expansion and restructuring of its existing foundry in Kolkata at a cost of `35 crore, which will enable it to make 6,000 tonnes of casting a month by the end of

this year. Apart from this, it is also setting up a new machining line here at an investment of around `30 crore with a view to become a full service provider, including machining the castings.

Kiswok, which primarily makes castings for heavy commercial vehicles in the domestic market, is looking at tapping the exports market in the passenger vehicles segment. Capacity constraints have become a deterrent for the company in not venturing in to exports and remain confined to only domestic market, that too primarily to Tata Motors. It is now gearing up to leverage its network in the export market mainly in Americas and Europe. The casting maker gets around 80 percent of its revenue from the automotive industry and rest from the manhole cover and pipes that are being exported to the Middle East. The company sees the other business as a stop-gap arrangement, in case of any unforeseen issues faced by its main business. Currently, its export business contributes around eight percent to its total revenue, although that is all from non-automotive products. However, once the new plant is operational in the next four to five years, it expects to snap around 50 percent of its revenue from the exports business. After expansion, it will also look at new business from other OEMs in the domestic market. As the CV segment is growing, Tata Motors has also shot up its numbers quite a bit and lots of other manufacturers have established themselves in eastern India, mainly in Jamshedpur where Kiswok has great advantage in terms of logistics. Hence, the company sees expansion inevitable. The company with three plants in Kolkata had touched a turnover of `180 crore in FY11 and hopes to scale it up to `215 crore by this fiscal year. The company which entered into exports as early as 1972, plans to increase its exports when the new facility in Kolaghat comes up. It will increase its revenue share from exports to 50 percent to act a back up support in case of any untoward development in the domestic market. With this new plant in place, it will ramp up volume in a phased manner; first it will reach 10,000 tonnes and aims to touch 40,000 tonnes in a few years. However, the casting maker is engaged in efforts to sustain the profit margins apart from strategic shifts to the volume. Currently, it earns a profit margin of around 10 percent before taxes. “To sustain the profit margin, we are doing a lot of value added activities and increasing automation, installing better technology in all the new expansions.” Director, Kiswok Industries, Mayank Kejriwal told Auto Monitor. Based in West Bengal, the biggest challenge for the foundry is to deal with the increasing cost of input material and labour crisis in the state. Also, in Kolkata, a disadvantage is the lack of OEMs in the region, and workers are not attuned to the processes. To overcome these challenges, the company is installing press force systems, online fan controlling systems, new charging systems, auto charging and robots with an investment of around `four crore. Additionally, it has installed a conveyer having a capacity to carry 100 castings per hour, which will help transport castings across areas. With this, the company reducing its dependability on labour and help increase profit margins to a considerable extent.

Auto Monitor

16 - 30 September 2011

CV SPECIAL

Small CV Segment: On a High Growth Trajectory he launch of Tata Ace, in 2005, has given a completely new dimension to the Commercial Vehicle (CV) market in India, which has ﬁ nally begun tapping its growth potential. Tata Motors capitalised on the gap which existed between the three wheelers and the Light Commercial Vehicle (LCV) segment in the sub onetonne category, by creating a new segment within the LCV domain, known as the Small Commercial Vehicles (SCV) segment. The success of Tata Ace has led to a ﬂurry of new models by other manufacturers. The paradigm shift for users/ buyers, from three-wheelers to the SCV goods segment, has been due to the latter’s advantages such as comfort, convenience, safety, and capacity to carry higher load. Over and above this,

the segment has itself generated new demand with more and more LCV drivers turning entrepreneurs. Even though several customers aspire for an SCV, they often opt for a three-wheeler due to its low pricing and for want of surety documents required to get a loan for an SCV. Sales in the three-wheeler goods carrier market have been negatively affected with the introduction of SCVs. Majority of SCV sales have been due to the generation of new demand from three categories of customers—majority being market load operators around 75 percent; captive users and contract operators account for the remaining 25 percent. The load requirement for SCVs is lower than traditional LCVs. Hence, SCV owners cater to transporting a plethora of products across industries that

Unit sales in India of SCVs from FY 06 to FY 11 300.0 Units sold in 000 units

250.0 200.0 150.0 100.0 50.0 0.0

FY 06

FY 07

FY 09

Goods Carrier

require transportation to shorter distances. This is one of the main reasons for traders buying SCVs for captive usage, especially consumer durable dealers, cement

FY 10

Passenger Carriers

dealers, contracting companies, courier ﬁ rms, and others. In the LCV segment, the sub-3.5 tonne category vehicles (SCV), sales more than trebled

Offers 4 weeks comprehensive course Batch 4 05 - 30 Sep 2011, Bangalore

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This course will enhance skill sets of fresh engineers in Mechanical Engg. with a blend of Practical sessions, Hands-on training on CNC Turning & Machining Centres with industry visits.

Eligibility : Fresh engineers (BE/Diploma) in Mech engg or allied disciplines and New recruits / Trainee engineers / Practicing engineers from industries Venue : IMTMA Technology Centre, BIEC, Bangalore

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FY 11

after the introduction of Tata Ace in 2005. Since then, the SCV market has grown from 89,367 units in FY 2005-06, to 288,264 units in FY 2010-11; growing at a CAGR of 26.4 percent in the past five years. The macro-economic parameters favouring the growth of the SCV segment include infrastructure development and urbanisation. However, fluctuating fuel prices and increasing interest rates are likely to play dampeners of demand, albeit not as much as the impact these factors would have on medium and heavy commercial vehicles (M&HCVs). Buoyed by the growth in the SCV goods carrier segment, which is expected to grow between 15-17 percent CAGR in the next fi ve years (base year 2010-11), CV manufacturers are in the process of exploring opportunities to introduce new products and better variants. With road infrastructure improving across the country, the demand for high-power vehicles with better features is likely to increase. The SCV passenger segment is expected to grow at a CAGR of around 25 percent in the next fi ve years (base year 2010-11), partly due to the low base effect and due to higher penetration into the three-wheeler passenger segment market. Future demand for these vehicles is likely to be driven by: • Transportation in India moving towards hub and spoke model pushing demand • Small entrepreneurs buy trucks for their own use (earlier this segment used to hire vehicles) and the give them on hire when not in use • SCV passenger vehicles are being used as last-mile connectivity in many rural areas where public transport is scarce. They are also fast replacing three-wheeler share autos in urban centres. Also, the vehicle performance is better in terms of driving in rough terrain, passenger comfort, and also the number of customers ferried • SCV owners find driving less tiring and also monthly earnings/savings are substantially higher than owning a three-wheeler The advantages for SCV owners vis-à-vis a traditional LCV owners are lower buying cost, less operating expenses thereby higher profitability, easy availability of fi nance, and attractive resale values. An SCV owner typically makes multiple trips with lesser payload than an LCV owner, who gets maximum of two loads a day. With changing dynamics of the CV market in India due to infrastructure development, long-term GDP growth (which has direct correlation on CV market), and cost-benefit analysis of logistic players, there is bound to be positive growth in the LCV and HCV goods carrier segments and negative impact on the MCV goods carrier. Within LCV, the SCV segment is gearing up for a relatively higher growth in both the goods and passenger carrier segment. (Courtesy: Automotive & Transportation Practice, South Asia, Middle East and North Africa, Frost & Sullivan )

Auto Monitor

16 - 30 September 2011

CORPORATE

Bosch ties-up with SRMU for training students Our Bureau Chennai

he Bangalore headquartered Bosch and the Chen na i-ba sed SR M University (SRMU) recently announced the launch of Bosch Joint Certification Training Centre. This is primarily to impart training to aspiring engineers and technicians to enhance their competency levels for better employability. The centre has several machines and equipment including vehicle diagnostics, and will impart training to undergraduate, post-graduate, polytechnic, vocational school students and nearby industry personnel to make them more competitive in the automotive industry. The course modules offer an efﬁcient combination of hardware and teaching methods

Dr M Ponnavaikko, Vice Chancellor, SRM University (fourth from left); S Muralidharan, VP & Head, Automotive Aftermarket, Bosch (second from right) along with other officials at the training centre

as industry-oriented training in the ﬁeld of automotive technology as per the Bosch concept. Successful candidates will be awarded a joint certiﬁcation from Bosch and SRMU. The automotive component manufacturer will also train the faculty for the centre at its Bangalore and other facilities

to enable them impart training as per industry requirements. Both the parties have equally invested in the `22 lakh project. “Absence of relevant skills is the single largest handicap in India today. Training programmes like this will help enhance the employability of the

Documents being exchanged at the function

students. Our industry knowledge, expertise in the automotive sector and technology capabilities has helped us winning the trust of our customers. We believe that a well trained technician is an asset to the business and hence we have taken a step ahead and are working towards empow-

ering the budding talent in the industry,” said Vice President and Head, Automotive Aftermarket, Bosch, S Muralidharan. The company has provided service training for more than 30 years to automotive vehicle manufacturers, TAFE colleges and its own service organisations. “The establishment of this centre will help us leverage our partnership with SRMU to empower the aspiring engineers and technicians match the industry standards in terms of skill set Limited,” he said. The Vice-Chancellor of SRMU, Dr M Ponnavaikko said, a recent study by the Tata Institute of Social Sciences (TISS) stated that a majority of the students pursuing higher education were not industry-ready. The survey also mentioned that only 25 percent of them were employable. NASCOM report also confi rmed it, he said. Recalling the former President of India, Dr Abdul Kalam who said, ‘India does not have problem of unemployment but un-employability,’ Ponnavaikko said this is due to the widening gap between industries and institutions. If institutions want to improve the employability of their graduates, they have to focus on reducing the important skill gaps through improvements in curriculum, teaching methods and industrial training. “The institute-industry interaction is realisable only when the industries enter into academic collaborations with the institutions, establishing an industrial environment in the university campus to expose the staff and the students to the industrial practices. The current initiative of Bosch with SRMU is the right model for bridging the gap between the industry and institutions to make the graduates employable,” he said. Muralidharan said the joint certification programme will not be confi ned to the aftermarket division of Bosch alone; instead it will look at the company as a whole since the education and training are vital for the automotive industry. “We will not have any direct advantage; it will be a part of corporate social responsibility initiative of the company,” he said. Bosch is a technology provider and its expertise does not confine only to mechanical engineering but in to several streams including electrical, electronics and communications. To a question whether SRMU would extend the services of this centre to other st rea ms of eng ineering Ponnavaikko said the company along with the group companies of Bosch is planning to offer similar programmes to students of few other streams of engineering including mechatronics and electronics. By this way the University can leverage the inherent potential and tangential relationships amongst different modules of engineering, he added.

Auto Monitor

16 - 30 September 2011

EVENT

ICS to showcase advanced composite technology

EC Composites has announced it s t h i rd In novat ive Composites Summit (ICS) to be held in Singapore from 18 to 20 October, 2011, showcasing the latest business intelligence and technical content to help promote the use of composites solutions around the world. As part of its global forums and conferences programme, ICS is the summit in the Asia-Paciﬁc region covering a wide range of technical papers, composites experts and qualiﬁed industry delegates in a single event. Asia is currently driving the global composites industry both in terms of production and consumption volumes, and a wide range of composite materials are enjoying increased market penetration across various segments. The three-day programme, which will be held in conjunction with

the annual JEC Asia Composites Show and JEC Asia Innovation Awards, is expected to feature more than 345 exhibiting companies and more than 7,000 trade visitors from 51 countries. “As the Asian composites sector adapts to significant industrial and market changes, this year’s ICS programme will help expose Asian fi rms to the latest technology trends and developments that are impacting their business. JEC Asia 2011 Composites Show and Conferences, now in its fourth year running, is already well positioned as the leading composites industry platform in Asia-Pacific. Each year, we aim to deliver a range of industry-specific seminars and conferences, technical sales presentations and business meetings to complement the new composites applications and technologies that will

Viewers throng at the JEC stall in one of their earlier summits

be displayed on the main exhibition ﬂoor,” said Frédérique Mutel, President and CEO of JEC Group. The programme comprises eight conferences and industry forums that will explore the latest breakthrough innovations across different end-user applications— process automation, aeronautics, infrastructure, automotive and

ground transportation, and wind energy sectors—as well as specialised conferences providing insights into the global carbon ﬁbre market, economic trends, growth drivers in the composites sector and composites design. To build on the success of the previous ICS sessions, a new Carbon Fibre Conference has been intro-

duced to extend the scope of the conference programme, as well as an additional auditorium to accommodate the expected increase in the number of conference delegates. “The key to the success of JEC Asia ICS program is in bringing together a diverse group of highly esteemed industry experts and technical specialists to share their views on how the Asian composites sector will evolve and keep in step with global trends, particularly with regards to how environmental issues will increasingly impact the entire composites value chain,” he added. Key automotive industry-specific highlights of JEC Asia 2011 ICS programme include weight reduction, which remains a key priority in the global automotive industry. It is projected that almost one out of every two cars will be produced in Asia by 2015, and Asian car manufacturers are increasingly exploring the use of competitively priced carbon fibre composites to reduce weight. This forum will feature a presentation by Volkswagen that will provide the latest insights into the sustainable use of carbon fibre materials in the automotive industry. New composites production techniques will be showcased through presentations by Huntsman Advanced Materials, Jacob Plastics and Quickstep Technologies, while Honam Petrochemical will share composites lightweighting trends in the automotive industry. The Technology Information, Forecasting & Assessment Council (TIFAC) of India will also present on the use of composite materials in the rail transportation sector.

Carbon Fiber Composites The programme will also see the launch of the new Global Carbon Fibre Market Conference, which focuses on the use of high performance carbon fibre composites for key industry segments such as aeronautics, automotive, wind energy, and sports and leisure applications. “Carbon fibre reinforced composite materials are playing an important role in reducing weight and fuel requirements in major transportation industry segments such as aviation and automotive. Fuel efficiency is one of the ultimate drivers of demand for these high performance composites materials, especially as the carbon composites industry continues to make strides in bringing down the overall cost of large volume production,” Mutel said. JEC is the one of the largest composites industry organisation in Europe and in the world with a network of 250,000 professionals. It represents, promotes and expands composites markets by providing global and local networking as well as information services.

Auto Monitor

STUDY

16 - 30 September 2011

The Delhi Effect: Decoding the Puneet Kulraj

istribution companies have always been wary of wholesalers in their distribution chain. Ideally, companies want selling agents in their di stribution chain who also act as true distributors; who are willing to continually service a deﬁ ned territory for selling and collections in small lots. However, the stark reality for many distribution companies is the dominant presence of wholesalers who buy in large bulks and sell them to the lowest bidder without any territory allegiance. When wholesalers dominate the distribution chain, it leads to territorial conﬂ ict and pricing competition for the same brand making it more of a com-

modity, rather than a brand. The problem of wholesalers is largely conﬁ ned to one major market—the Delhi wholesale market. The Delhi market tends to sell about 15 percent to 20 percent of the entire country’s sales for most auto spare part companies, while it accounts for maybe about eight-10 percent of the country’s consumption. No doubt, the sales manager in-charge of most companies based in Delhi do not tend to have many friends. While he is always on targets, his colleagues continually rant about Delhi material sold in their area. The effect is not just limited to nearby territories, but the distributors across from Salem to Silguri, Kutch to Kovalam and Ranchi to Raipur—all complain-

Puneet Kulraj, Founding Partner, Vector Consulting Group

ing of ’heavy inﬁ ltration‘ of Delhi material into their area.

‘Delhi Material’ Let us tr y to understand this phenomenon of ’Delhi material’—how come the goods from Delhi travel to the length and breadth of the countr y and are sold in another distributor’s area? A retailer’s business model is quite simple to understand: Sell at MRP and try to maximise on the proﬁt. The only way to maximise on the proﬁt is to buy cheap and ensure that the total costs (purchase and transport) should be the lowest rate possible. Logically, a retailer should buy from a distributor located closest to him (the transportation charged would be the least). But when a Salem-based retailer bypasses his closest distributor and opts for a distributor based in Delhi, there can be only one conclusion—he is getting a cheaper deal from Delhi. You would know of course that the cost of transportation from Delhi would be substantially high compared to getting it from the local distributor. It can mean only one thing: the cost at which he buys from Delhi is substantially lower. How is it possible that when both the distributors (Salem and Delhi) get the same margin from the company and yet their selling prices are so different that a Delhi seller can undercut the Salem seller, even after compensating the substantially large transportation costs? You probably know the answer, but if you do not, let me introduce you to the protagonist of this piece: the Delhi wholesaler.

The Delhi Wholesaler Found in locations like Kashmiri Gate, Chawri Bazaar and Punjabi Bagh, operating out of pigeonholed cubicles that serve as an ’ofﬁce‘, the wholesaler is extremely well connected (multiple telephones off the hook simultaneously) and is a speculator to the core. He can put the traders on Wall Street to shame with his knack for ’rolling‘ stocks and money for the thinnest of margins. Spend a few hours in any of the trading hubs, look past the incredulous sights of entire engine blocks or gearboxes being carried around overhead in wicker baskets, and you will see deals being struck on phones and slips of paper—the essence being two things: quantity and percentage points. Yes, this is the environ-

16 - 30 September 2011

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city’s distribution code ment where hardcore trading at its fundamental raw level will never cease to amaze you. The Delhi trader, knows only one thing, and that is to ’roll‘ his money as fast as possible and the best weapon in his hands—price! The business model is simple and in two parts: buy large quantities at cheap prices and sell them cheaper still. The ﬁ rst part is executed very well with the sales or territory manager who sees this as an easy way to meet his numbers and actively get the best discounts from his company.

‘Sell Cheap’ Once this is done, the second part is easy—sell cheap. How cheap is cheap? Well, legend has it that sometimes some of the traders

Found in locations like Kashmiri Gate, Chawri Bazaar and Punjabi Bagh, operating out of pigeonholed cubicles that serve as an ’office‘, the wholesaler is extremely well connected (multiple telephones off the hook simultaneously) and is a speculator to the core. He can put the traders on Wall Street to shame with his knack for ’rolling‘ stocks and money for the thinnest of margins sell at a price below what they buy for, and they make their money by selling the cardboard outer packing cartons that the goods come in! They have little or no overheads, sometimes holding no stocks at all and delivering goods straight from the company’s depot to the customer—the famous “bill to-ship to” phenomenon. Now this is inventory turns at its cut-throat best. Good for the wholesaler, good for the Delhi sales manager and good for the retailers in Salem, Siliguri and Gandhidham. They can buy the stuff at such a low rate that it not only takes care of transportation all the way from Delhi, but also beats their local distributor. Those who can buy the quantities for this to work, do it all the time. It forces the local distributor to drop his prices too in a desperate attempt to maintain his volumes. However, what does this do for the company? It creates a market that is strife torn, with one distributor undercutting the other, prices being ruled by speculators, spikey sales leading to uneven distribution resulting in surplus stocks in one part of the country and creating shortages in other parts that are left open for competition. Imagine, for all the brand building, advertising, the 4Ps of Kotler, the fate of the product is decided by the wholesaler who, based on the quantity he has been able to corner, and the price that he has got, puts out the ruling price of the day “aaj ka bhav”

for the product. Thus, so vitiated can the environment become that some companies experience a severe back lash from their other distributors and even face desertion. But due to dominant sales of Delhi market, companies fi nd it very difficult to bite the bullet. If one has to stop the sales to the Delhi wholesale market, it means an immediate drop in volumes—what happens to the targets? No doubt companies, particularly the auto spare parts, have learnt to live with this confl ict forever. Is there a way to get out of this mess without affecting the sales target even for the immediate term? To answer the question, one needs to understand why real distributors never dominate

the supply chain. The answers lie with the companies itself. Most companies operate on the push mode. They tend to sell in one big lot towards the month end, spiced up with attractive discounts, while overall availability at a SKU level suffers throughout the month. The pressure of high unwanted inventory, forces many selling agents to always look for fastest way to get rid of the inventory. Over the years many selling agents, particularly in the Delhi region, have used it to their advantage rather than complaining against the system. Any person who acts as real distributor suffers very badly—on one hand he does not get good availability to continually service his market with small lots, and on the other hand, he

has ﬁght off the wholesalers in his territory. If companies want to take advantage—they have to help make distribution a lucrative business, which means they should have ability to continually service small requirements of the distributor throughout the month. But how can they do that when they have their sales target and their forecasts actually go haywire: they have to push the inventory. The only way out is to get out of the push mode to a pull mode. They have to move to a model of supplying as per consumption, which in turn will help distributors earn high ROI and invest more in the market. Once the distributors start earning high ROI and company sale per real distributor starts going

up, they can convince many of the wholesalers to get converted to distributors. If many are not willing, at least, they will gather courage to replace them with real distributors. Implementing a pull-based paradigm shift requires significant changes right from production planning to sales planning and relationship with distributors. It requires significant collaborative efforts to create a whole new world with real win-win principles. Sounds much better than staying in conflict! (The author is the Founding Partner of Vector Consulting Group (www.VectorConsulting.in). He can be contacted at puneet@vectorconsulting.in. Views expressed are personal.)

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16 - 30 September 2011

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Auto Components Industry: Moderation in I CRAâ&#x20AC;&#x2122;s recent analysis of trends in the auto components sector revealed that there was a wide variance in the performance of individual companies with revenue growth being relatively higher for companies dependent on the domestic two-wheeler (2W) and Light Commercial Vehicle (LCV) segments; and growth being lower/ negative for companies dependent on the Passenger Vehicle (PV) and Medium & Heav y Commercial Vehicle (M&HCV) segments. A part of the reason for the industryâ&#x20AC;&#x2122;s subdued revenue growth in Q1, 2011-12 was (a) the signiďŹ cantly high volume growth experienced in Q4, 2010-11 causing build-up of inventory in the OEMsâ&#x20AC;&#x2122; distribution channel that took time to revert to normalized levels in the following

month but in the interim meant lower production by OEMs1; (b) the natural calamity in Japan in March 2011 which disrupted the domestic industryâ&#x20AC;&#x2122;s supply chain to a certain degree; (c) production disruptions with key OEMs due to labour issues. While revenue growth of the auto components industry at large is expected to moderate over the short term, its impact on individual companies may be mixed depending on their revenue mix (OEMs/ Replacement Market), segment leaning (PV/ CV/2W) and geographical diversiďŹ cation (domestic/ exports). Overall, auto component manufacturers who have (a) stronger presence in the replacement market, (b) lower dependence on interest rate sensitive automobile segments, and (c) geographical-

ly dispersed customer base, are likely to be better equipped to offset the expected moderation in business with domestic OEMs in 2011-12. Margin erosion may be less steep if commodity price cycle could reverse early. The price of key raw materials including steel, aluminium, copper, plastic and rubber used in automobiles has been on a rising curve since the beginning of CY2009. Still, considering that average raw material prices in 2009-10 were lower than those prevailing in 2008-09, the proďŹ t margins of the auto and auto components industry had witnessed a healthy expansion in 2009-10, supported also by strong surge in sales volumes resulting in operating leverage beneďŹ ts. Over the last ďŹ ve months, however, the upward movement

in prices of key commodities has abated to a certain extent, a trend which if sustained, could cushion the margin erosion of auto OEMs; and in turn limit pricing pressure on auto component manufacturers from OEMs. Further, lower off-take by domestic OEMs may also allow auto component manufacturers to focus more on the domestic replacement market and pursue export opportunities, something which they could not do in 2010-11 in view of strong demand from domestic auto OEMs. In the process, such players should be able to partially neutralize lower OEM sales as well as earn superior margins. Based on ICRAâ&#x20AC;&#x2122;s discussion with various auto OEMs and auto component manufacturers, there seem to be no signs of deferral yet related to new product launch

schedules of automotive OEMs. Accordingly, vendors selected by OEMs to supply components for their new models scheduled to be introduced over the next several quarters currently plan to incur all committed investments. However, since there is a certain degree of scepticism arising from possible dampening of endcustomer sentiments due to the macro-economic environment, some vendors are contemplating reviewing their expansion plans for commissioning incremental capacity to cater to existing models as these may grow at a rate lower than initially envisaged. In any case, in the prevailing environment of expected moderation in domestic demand and rising interest rates, companies that plan to avail more debt may burden their balance sheets; on the contrary, companies having cash balances may ďŹ nd the same more valuable, not because of liquidity concerns in the banking system, but due to their effectively lower cost of funds.

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The Comprehensive Economic Partnership Agreement (CEPA) between India and Japan became effective from August 1, 2011. This agreement is aimed at promoting liberalization of trade in goods and services between India and Japan, enhancing bilateral economic partnership and strengthening cooperation in various areas including movement of professionals and intellectual property. Amongst other things, the pact seeks to abolish import duties on most products and liberalize investment rules. While the Indian auto and auto components industry has been largely shielded from tariff cuts by their inclusion in the negative list of items, India has agreed to reduce tariffs on steel and certain auto parts made of steel. Indiaâ&#x20AC;&#x2122;s 10% tariff on Japanesemade bumpers, wheels and mufďŹ&#x201A;ers will be dropped in 11 years, while the 5% levy on hotrolled and galvanized steel sheet will disappear in six years. The tariff on gear boxes and parts thereof will fall from 11.25% to 6.25% over eight years.

Domestic Auto Industry The various Free Trade Agreements (FTAs) and CEPAs entered into by India with other countries is expected to catalyse the import of auto components into India as many components may become more cost effective to import following reduction of import duty. Overall, while FTAs may bring down the cost of certain raw materials and intermediate inputs for the Indian OEMs, the auto component industryâ&#x20AC;&#x2122;s exposure to risks related to possible loss of business from OEMs and lower incremental capital assets creation is likely to remain. Proposed withdrawal of the DEPB incentive scheme after September 30, 2011 could add to the woes of auto component exporters. The Duty Entitlement Passbook (DEPB) Scheme, which was earlier scheduled to be withdrawn after June 30, 2011, was extended by another three months by the Ministry of Finance and is now scheduled to be replaced by a modiďŹ ed duty drawback scheme w.e.f. September 30, 2011. Under the DEPB scheme, which has

16 - 30 September 2011

growth imminent been in operation for 14 years, exporters receive tradable scrips based on the FOB value of goods exported that could be used to pay import duties on inputs. The refund of taxes makes the exported products remain competitive in global markets and accordingly the withdrawal of this incentive may erode export profitability. The impact on profit margins of industry players may differ depending on the product category. While the notification of the new rates under the modified duty drawback scheme is awaited, in the event the new rates are significantly lower than the existing benefits available under the DEPB Scheme, the profit margins of auto component exporters is bound to be adversely impacted. This may add to the woes of Indian component exporters who are already troubled by greater currency fluctuations as compared to their global competitors mainly China. The export dependence of the auto component industry as a whole however currently remains modest at ~15%. Over the years, MSIL has followed the practice of extending interest-bearing tooling advances to some of its suppliers such that the tooling so developed remains on the suppliers’ books of accounts and gets amortized by the vendors over a pre-agreed model life. However, to align itself with the International Financial Reporting Standards (IFRS), MSIL has changed its accounting treatment (w.e.f. quarter ended March 2011) for assets related to tools and dies such that these are now bought back by MSIL from its suppliers and appear as part of MSIL’s gross block. The above change in accounting treatment by MSIL will not have any cash flow impact on its auto component suppliers. While earlier, the suppliers were amortizing the cost of the tooling (over the life of the model) and building the same in component pricing, they would now recognize upfront tooling sales. Even earlier, the tooling advances gave MSIL’s suppliers the funding required for tooling development and offered greater financial flexibility (as compared to bank funding) since repayments were linked to sales volumes. However, the change in accounting treatment is estimated have a negative impact on the suppliers’ OPM with the quantum depending on the proportion of tooling advances availed by the supplier, although its impact on PBIT Margin is likely to be neutral. This is because depreciation/ amortization expenses as per the earlier treatment will move to other operating expenses as per the new treatment.

Conclusion Rising interest rates & fuel prices and slowing industrial activity are likely to have a moderating impact on automobile demand (primarily PV and M&HCV segments) in the near term. The longer term demand drivers for the domestic market however remain intact and the auto components industry remains on track with its capacity expansion plans to meet the expected demand growth. As the Indian component indus-

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try moves towards a more globalized environment, on the back of increased participation in the growth opportunities emanating from product plans of global OEMs, the industry faces heightened challenges in terms of dealing with lowering duty protections, foreign exchange ﬂuctuations and vulnerability to demand slowdowns in international markets. Nevertheless, the overall beneﬁts of bigger scale, deeper relationships with global OEMs, absorption of next generation technologies and exposure to international best practices are expected to be the key positive outcomes from the above supporting the growth process of the Indian auto components industry. (Courtesy: ICRA Research)

Impact on margins of MSIL’s auto component suppliers due to change in accounting treatment for tooling Vendor invests in tooling funded through advances from Vendor invests in tooling funded through advances from OEM; OEM; Tooling sold to the OEM such that it becomes a part of Tooling remains on vendor’s gross block the OEM’s gross block Assumptions Assumptions Component Price (Rs.) 2,000 Component Price (Rs.) 2,000 Annual Vehicle Volumes (Units. Nos.) 50,000 Annual Vehicle Volumes (Units. Nos.) 50000 Total Tooling Cost (Rs. Crore) 1 Total Tooling Cost (Rs. Crore) 1 Model Life (no. of years) 1 Model Life (no. of years) 1 Tooling Cost per Vehicle (Rs.) 200 Tooling Cost per Vehicle (Rs.) P&L of Supplier P&L of Supplier Revenues (from sale of components) (Rs. Crore) 10 Revenues (from sale of components) (Rs. Crore) 11 Revenues (from tooling amortization) (Rs. Crore) 1 Revenues (from tooling amortization) (Rs. Crore) 1 Total Revenues (Rs. Crore) 11 Total Revenues (Rs. Crore) 11 Operating Costs 9 Operating Costs 10* OPBITDA 2 OPBITDA 1 Depreciation 1^ Depreciation 0^ PBIT 1 PBIT 1 Interest 0.1 Interest 0.1 PBT 0.9 PBT 0.9 OPM 18.2 % OPM 9.1% PBIT Margin Balance Sheet of Supplier Gross Block Less: Depreciation Net Block Opening Tooling Advance Closing Tooling Advance

9.1% 1 1 0 1 0

PBIT Margin Balance Sheet of Supplier Gross Block Less: Depreciation Net Block Opening Tooling Advance Closing Tooling Advance

9.1% 0 1 0 1 0

Source: ICRA’s Estimates; *Assuming the vendor does not earn any proﬁt on sale of tooling such that income from tooling sales is equivalent to cost of tooling development; ^For simplicity, assuming there is NIL depreciation on other ﬁ xed assets

16 - 30 September 2011

Auto Monitor

GLOBAL WATCH

New Mercedes-Benz V6 uses FederalMogul’s piston technology A

piston technolog y for Daimler’s latest V6 diesel engine that helps to reduce fuel consumption and emissions has been developed by Federal-Mogul jointly with Mercedes-Benz. The design gives Mercedes-Benz a piston that fully exploits the advances in thermal and mechanical durability made possible by Federal-Mogul’s DuraBowl manufacturing process. Federal-Mogul’s DuraBowl piston technology will be among the company’s latest technologies to be exhibited at this year’s IAA (Frankfurt Auto Show). Advances in piston designs play a critical role in reducing fuel consumption and emissions. The use of Federal-Mogul’s advanced

Lanxess zinc oxides’ status elevated

oday, zinc oxide products are in demand in industries beyond the rubber industry. From its applications in ceramics, various fields of electronics and home and personal care to specialty pharmaceutical and UV protection applications: zinc oxide products are becoming increasingly important thanks to their special properties. From its beginnings 80 years ago as a key additive for rubber production, zinc oxide has since, been developed into a popular specialty chemical with a broad spectrum of application. Zinc oxide from Lanxess, fi rst manufactured at the Uerdingen Chemical Park, Germany, eight decades ago, has repeatedly tailored it to a broad range of new applications in recent years. Lanxess produces zinc oxide active and zinc oxide transparent—the latter is a zinc carbonate—using a process combining precipitation and calcination rather than a classic roasting process used by many other manufacturers. In addition to its consistent quality, this also results in substantially larger specific surface areas (50 to 60 m2/g) and what is for many applications, an optimal grain size distribution. For many customers, the low concentration of heavy metal contaminants is another key argument in favour of the products. “Our zinc oxides are now much more than commodity products—they are true specialties,” said Product Expert, Lanxess, Dr Adolf Sicheneder. At the world-scale plant in Uerdingen, the raw materials are elaborately purified, isolated as zinc carbonate in a wet chemical process and then heated in special annealing furnaces to produce the fi nal products. “The optimisations that we have made to the process over the decades are reflected in more than just highly consistent quality,” said Sicheneder. The process enables the Lanxess chemists to adjust the properties of their product and tailor them to the specific application. “We have been refi ning our process and the products continuously for 80 years, and always in coordination with our customers and in keeping with their objectives.”

DuraBowl technology allows piston crown geometries that help to burn fuel more efﬁciently, improving combustion efficiency and reducing emissions. DuraBowl’s increased durability also helps designers to reduce piston mass while improving performance. These attributes all lead to reductions in diesel engine fuel consumption and emissions, with improved power output. “The rising speciﬁc output of downsized diesel and gasoline engines place higher thermal and mechanical loads on many of the key components where Federal-Mogul has expertise,” said Federal-Mogul President and CEO, Jose Maria Alapont. “The DuraBowl piston process shows how we are delivering specialised

process technologies that help our customers meet these challenges successfully and support sustainable global proﬁtable growth.” The large-bowl combustion chamber in Daimler’s OM642 V6 3.0-litre diesel features a piston crown with an enlarged bowl recess with steep sides and a sharp cutback below the rim. It helps reduce emissions to EU V/EU VI-levels by lowering the compression ratio to 15.5:1 from 18:0 (EU IV). To strengthen the piston crown, Federal-Mogul’s DuraBowl process uses a highvoltage, high-amperage form of Tungsten Inert Gas arc welding (TIG) to remelt the metal around the bowl rim into a highly durable microstructure.

Federal Mogu;’s Durabowl

“DuraBowl extends a piston’s fatigue resistance by four to eight times under cyclic thermo-mechanical loading,” said Rainer Jueckstock, Senior Vice President, Powertrain Energy, Federal-Mogul. “The process

required extensive development to produce the ideal current and voltage to deliver optimum results and consistent high quality within just 18 months. The result is a leading, technically advanced, high-performing and very cost-competitive product.” Federal-Mogul pre-machines the cast pistons used in the DuraBowl process. A welding robot then applies a precisely deﬁned energy input around the rim of the bowl in a single pass. The re-melted alloy cools a thousand times faster than when it was originally cast, producing silicon particles that are one tenth of their previous size. This reﬁnement of the microstructure increases the alloy’s strength and durability.

16 - 30 September 2011

GLOBAL WATCH

Auto Monitor

Altair assists in hydraulic hybrid transit bus A

ltair Product Design, a wholly owned subsidiary of Altair Engineering, unveiled the world’s fi rst series of hydraulic hybrid transit bus ‘LCO-140H’ developed under the BUSolutions programme in partnership with Automation Alley. It is an effort to revitalise public bus transportation in America. Compared to the database of buses tested at Altoona, where the Federal Transit Administration (FTA) certification program is conducted, the LCO-140H fuel economy results are 110 percent better than conventional diesel buses and 30 percent better than the leading diesel-electric hybrid buses currently available. The LCO-140 achieved an industry high fuel economy of 6.9 mpg when tested using the downtown ‘stop-and-go’ duty cycles and test protocol established by the FTA for transit bus certification testing. BUSolutions is projected to lower the cost of ownership by $170,000 per bus as compared to a conventional diesel bus. With the average local transit authority operating approximately 300 buses, the savings could reduce a city’s cost of transit bus operation by approximately $50 million. When compared to an estimated $27 million increase in operational costs for a similar electric hybrid fleet, it is clear the LCO-140H could revolutionise the transit industry by providing reduced fuel consumption and emissions while improving the fiscal performance of a regional transit authority. The programme has been a collaborative effort between public and private entities to research, develop and commercialise advanced transit bus systems that are significantly more fuel efficient, have lower operating and maintenance costs, are competitively priced and can operate without updating the infrastructure of existing transit authorities. In addition to investments by Altair and Automation Alley, BUSolutions has been funded by multiple federal and state programs including the FTA and the Michigan Economic Development Cor porat ion (MEDC). It also has received support by southeast Michigan congressional members, transportation industry partners, and local transit authorities SMART and the Detroit Department of Transportation (DDOT). “This project has been a collaborative effort from start to fi nish throughout the development, design and test phases,” said Chief Operating Officer, Altair ProductDesign, Mike Heskitt. BUSolutions strategica lly partnered with regional and global high-tech manufacturers that assisted in incorporating state-of-the-art components and technologies from the transportation sector. Programme sponsors include Parker and Meritor, which contributed significant driveline systems and knowledge. Various levels of support have been provided by PRAN, Sika Corporation, Meritor Wabco, Alcoa Wheel Products, Carrier Corporation, LADD Industries, Haldex, Shaw Development, Tenneco, USSC Group, Cummins Bridgeway, Multicolor Specialties and Williams Controls. Altair has worked closely with local transit authorities, SMART and DDOT, to ensure the newly

designed bus platform will meet regulatory requirements and address the needs of bus drivers and riders. Altair also established

issues and public-interface ergonomics. T he L C O -14 0H bus will also be demonst rated at t he upcoming American Public Transportation A ssociat ion (A PTA) Expo in New Orleans. The programme was established to develop and commercialise an advanced bus platform that lowers the total cost of ownership and environmental impact of commercial buses without updating the infrastructure of existing transit authorities. Altair BUSolutions Leveraging the compathe BUSolutions Advisory Board ny’s domain knowledge to offer insight into broader in vehicle systems and cutcommunity needs, as well as ting-edge, simulation-driven perspective on actual ridership design practices to develop the

design, Altair successfully partnered with Automation Alley, Michigan’s largest technology business association, to secure federal funding to build working technology demonstrators for future commercialisation. Altair ProductDesign is a global, multi-disciplinary product development consultancy of more than 500 designers, engineers, scientists, and creative thinkers. It is best known for its leadership in combining its engineering expertise with Computer Aided Engineering (CAE) technology to deliver innovation and automate processes. Altair ProductDesign ﬁ rmly advocates a user-centred, team-based design approach, and utilises proprietary simulat ion a nd opt i m isat ion technologies to help clients bring innovative, proﬁtable products to market faster.

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16 - 30 September 2011

STUDY

Softening rubber price small relief amidst slowing automotive demand, rising import threat 100%

80%

200

40% 100

217.2

190.3

114.9

90.0

0% -20%

FY-04 FY-05 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 YTD-12 Source: Rubber Board

YTD-12: Apr to Aug 2011

Chart 2: Trend in import of Truck and Bus Radials 1,800

500%

Imported radial MHCV tyres (In '000 Nos.) Growth (%) 393%

1,600 1,400

400% 300%

1,200 1,000

200%

-18%

FY05

FY06

FY07

FY08

729

200

22% 598

400

55%

43% 1,607

600

1,127

141%

800

100% 0% -100%

FY09

FY10

FY11E

Source: DGFT, ICRA estimates NR price movements, SR prices also have strong correlation to crude oil price movements.

Softening Prices Help Margins A raw material intensive industry, tyre manufacturer margins are highly correlated to the price movements of raw materials. The prices of Natural rubber (NR), the key raw material constituting around 43 percent of total raw material costs, witnessed a sharp rise during fiscal 2010-11. Domestic rubber prices increased from lows of `95 per kg in May 2009 to highs of `240 per kg in April 2011 while global NR prices rose from $164 per kg to $483 per kg during the same period. Globally, NR consumption increased by 14.4 percent during the fi scal 2010-11, while NR production increased by only 6.1 percent. In India, NR Production during the fiscal 2010-11 grew by 3.7 percent as against the consumption growth of 1.8 percent. In absolute terms, Indian NR production for the fi scal 201011 stood at 0.86 million tonnes as against consumption of 0.95 million tonnes, leading to large import requirements. The removal of anti-dumping duty against Chinese, Thai Truck & Bus radials (TBRs) with effect from August 12, 2011 could impact the replacement market for domestic tyre manufacturers. During fi scal 2010-11, the country’s NR imports stood at 0.18 million tonnes—a 0.5 percent increase over the last fiscal. Until March 2011, the Indian tyre industry suffered from an

92.0

55.7

67.0

101.1

20%

% increase

60% 150

50.4

After registering a strong 26 percent growth during the past two ﬁscals (2009-11), the growth in the automobile industry, consisting of commercial vehicles (CV), passenger vehicles (PV), two-wheelers and Three-Wheeler (3W) segments, has been slowing down. During April-July 2012, the M&HCV segment, which accounts for around 65 percent of total revenues for the tyre industry, posted a modest growth of 6.4 percent on Y-o-Y basis as compared to a staggering 74.2 percent during April-July 2011. Despite the slowdown in demand at the consumer end, some channel and inventory pipeline buying, coupled with healthy exports supported tyre demand during Q1, 2011-12. However, ICRA expects these macroeconomic dampeners to mute demand (volumes) for tyres during the ﬁscal 2011-12 to around seven-10 percent in the OEM segment and around 10-13 percent in the replacement segment. However, while near term automotive demand is expected to be tempered owing to the macro-economic headwinds, the long term growth fundamentals of the industry remain strong.

250

248

The tyre industry continued its growth momentum in fi scal 2010-11 (April 1, 2010 to March 31, 2011) registering a strong 27 percent growth in revenues backed by healthy demand from both the auto OEM and replacement segments and supported by capacity ramp-up by major players. The growth was driven by strong domestic OEM demand from the Truck and Bus (T&B), Passenger Vehicle (PV) and Two-Wheeler (2W) segments which saw unprecedented volume growths of over 25 percent. Exports, which had declined by five percent in the previous fiscal, saw a strong recovery registering a volume growth of 22 percent during 2010-11. Unlike the PV and 2W segments, where the OEM segment accounts for a significant portion of the volumes, the Medium and Heavy Commercial Vehicle (M&HCV) segment is largely driven by demand from the replacement market, which accounts for more than 80 percent of total demand. The M&HCV segment, accounting for the bulk of tyre industry revenues (~65percent), saw a modest increase of four percent in overall demand on account of weak demand from the replacement segment and despite a 32 percent growth in OEM demand. The price increases imposed by most tyre manufacturers in response to the unprecedented increase in rubber prices led to a decline in demand from the price sensitive M&HCV replacement markets translating into increased re-treading and delayed replacements. However, strong OEM and export demand supported a 24 percent growth in overall domestic demand (volumes), as compared to 21 percent growth in the previous fiscal. Even as the industry benefited from the strong revenue growth during 2010-11, higher input costs, especially that of natural rubber, led to a sharp 19 percent decline in operating profits and 37 percent decline in net profits. Players having a diversified product mix

Headwinds Dampen Demand

Chart 1: Average natural rubber prices [RSS -4] during the last eight years

Declined Margins

with presence in the relatively high margin radial passenger car segment (as compared to the M&HCV segment, which is largely commoditised in nature), higher presence in the replacement market segment which offers better pricing ﬂexibility, presence in niche high margin tyres (like Off-The Road (OTR) and winter tyres) and superior brand image, have been able to post relatively healthier margins.

riven by the strong revival in automotive demand, particularly in the passenger vehicle and two-wheeler segments and export demand for tyres, the Indian tyre industry reported a healthy revenue growth of over 25 percent during fiscal 2010-11. However surge in input costs especially that of natural rubber (NR) negated any scale benefits, and resulted in a contraction of industry-wide operating margins by over 500 BPS. This was despite numerous industry wide price hikes, cumulatively amounting to a 15-20 percent increase in tyre prices. Despite the worrying macroeconomic indicators and a general slowdown in domestic automotive sales, the Indian tyre industry continued to post a healthy 25-30 percent revenue growth during Q1, 2011-12 supported by strong replacement and export demand. For fiscal 2011-12, while ICRA expects moderation in automotive OEM tyre demand, the strong growth in OEM sales in the last two fiscals is expected to translate into higher replacement demand.

Rs. per kg

While the capacities in fiscal 2010-11 have increased by eight percent, the industry is set for a 25 percent addition during the next two years

inverted duty structure wherein the customs duty on import of the input, NR stood at 20 percent, as against the duty of only 10 percent on import of tyre. In April 2011, this inverted structure was corrected partially with NR import duty attracting the lower of 20 percent or `20 per kg (which at current prices is an effective eight-10 percent). In July 2011, through a notiﬁcation, GoI also allowed the import of upto 40,000 tonnes of NR during ﬁscal 2011-12 at a concessional duty of 7.5 percent.

Decline In Crude Oil Prices Crude oil prices have been volatile during the last six months following the debt crisis in Europe and United States, political upheaval in Middle East and North Africa, and cut in demand forecasts by OPEC4. Synthetic rubber (SR), a key raw material for tyres adding a signiﬁcant 15 percent to the overall input costs is a crude derivative. Apart from

Backward Integration To Protect Margins As evident during the past few years, the margins of tyre manufacturers are highly susceptible to movement in rubber prices. As witnessed during fi scal 2010-11, margins declined sharply owing to the significant upsurge in rubber prices and the inability of tyre companies to fully pass on the rise to the consumers. W hile revenue grow t h remained strong across all quarters in 2010-11, revenues witnessed an accelerating trend with the fourth quarter registering a strong growth (y-o-y growth of 32 percent) supported by higher sales of PV tyre, revival of demand in the truck and bus radial (TBR) replacement tyre segment and strong year-end buying. The growth momentum continued in Q1, 2011-12 with major players registering strong revenue growth nearing 30 percent (y-o-y). However with the softening of demand across all automotive segments and with the higher base effect coming into effect, ICRA expects demand to moderate from Q2, 2011-12 onwards. Although tyre OEMs have so far resisted price reductions, stiff resistance to price increases from fleet operators may limit such flexibility in future. The margins of tyre companies, mainly players

with large export revenues, are also expected to be under pressure with the withdrawal of Duty Entitlement Passbook (DEPB) scheme from October 1, 2011. The domestic tyre industry has been in an investment mode during the last few years with almost all participants adding significant capacities. Supply additions were high between 2008 and 2010, with domestic capacities increasing by around 49 percent. While the capacities in fiscal 2010-11 are estimated to have increased by ~eight percent, the industry is poised for another ~25 percent addition during the next two years. Of this, bulk of the investments are expected in fiscal 2011-12 with ~19 tyre projects targeted for completion this year. The relatively lower cost of imported TBRs, domestic capacity constraints (particularly in radials) and fast pace of radialisation in the T&B segment has led to a huge growth in imports of TBRs during the last couple of years. In order to protect the domestic industry, the GoI in February 2010 imposed a defi nitive anti-dumping duty (ADD) seven on TBRs (tyres and tubes) imported from China and Thailand. Even factoring in the ADD, Chinese tyres continued to remain cheaper than domestic tyres. Coupled with shortfall in domestic capacities, the import of TBRs is estimated to have grown by 43 percent in 2010-11. (Courtesy: ICRA Research)

Auto Monitor

16 - 30 September 2011

ADVERTISERS’ LIST CORPORATE

Pg No. ........Advertiser ...................................................................................Tel ..................................................E-mail ...................................................................... Website 3 ................ACE Designers Ltd .......................................................................+91-80-22186700 ..........................acedesigners@acemicromatic.com ......................... www.acedesigners.co.in 42...............ADEA Awards ..............................................................................+91-22-30034650 ..........................prachi.mutha@infomedia18.in ............................... www.adea.in 11 ...............Anand Automotive Ltd................................................................+91-11-26564542 ...........................arpita.bhatia@anandgroupindia.com..................... www.anandgroupindia.com 18...............Ashfa Corporation ......................................................................+91-22-25107461 ...........................ashfa91@hotmail.com ............................................ www.ashfacorp.com 13...............Assab Sripad Steels Ltd ...............................................................+91-44-24951980 ..........................chennai@assabsripad.com...................................... www.assabsripad.com 46 ..............ATS Conveyors India Pvt Ltd .......................................................+91-20-66300104 .......................... ats@atsconveyors.com ........................................... www.appalette.com 35...............Camozzi India Pvt Ltd ................................................................+91-120-4055252 ..........................info@camozzi-india.com ........................................ www.camozzi.com 69 ..............Chaphekar Engineering Pvt Ltd ..................................................+91-20-66524877 ..........................sachin@chaphekarengg.com .................................. www.chaphekarengg.com 56 ..............Confederation Of Indian Industry ..............................................+91-124-4013871........................... rachna.jindal@cii.in .............................................. www.autoexpo.in 57 ..............Delux Bearings Limited ..............................................................+91-22-24926660...........................info@deluxbearings.com ........................................ www.deluxbearings.com 28 ..............Dynascan Inspection Systems Co ................................................+91-80-41102747...........................dynascan@vsnl.com ................................................ www.dynascan.info 67 ..............Ecocat India Pvt Ltd....................................................................+91-129-4266500 ..........................alok@ecocatindia.com ............................................ www.ecocat.com 32...............Elak Private Limited ...................................................................+91-172-5078112 ...........................info@elak.co.in ....................................................... www.wlakindia.com 48 ..............Electromech Material Handling Sys Pvt Ltd................................+91-20-66542222 ..........................getcranes@emech.in ............................................... www.emech.in 75...............Electronica Hitech Machines Pvt Ltd ..........................................+91-20-30435400 ..........................marketing@electronicahitech.com ......................... www.electronicahitech.com 52,64 .........Engineering Expo .......................................................................+91-9819552270............................engexpo@infomedia18.in ....................................... www.engg-expo.com 60 ..............B2C Magzine ....................................................................................................................................................................................................................... www.entrepreneurindia.in 29 ..............ETAS Automotive India Pvt Ltd ...................................................+91-80-4191 6581 .........................sales.in@etas.com ................................................... www.etas.com 65...............Ferromatik Milacron India Ltd ...................................................+91-79-25890081 ..........................salesfmi@milacron.com .......................................... www.milacronindia.com 61...............G W Precision Tools India Pvt Ltd ...............................................+91-80-40431252 ..........................info@gwindia.in ...................................................... www.gwindia.in 45...............Godrej & Boyce Mfg. Co. Ltd. ......................................................+91-22-67962751 ..........................trmktg@godrej.com ................................................ www.godrejtoolings.com BIC .............Guhring India Private Limited ....................................................+91-80-40322500..........................info@guhring.in ..................................................... www.guhring.in 21...............IAC International Automotive India Pvt.. Ltd. ............................+91-20-66538604 ..........................ASharma@iacna.com .............................................. www.iacna.com 50 ..............Indian Machine Tools Manufacturers’ Association .....................+91-80-66246514 ..........................anuj@imtma.in ....................................................... www.imtma.in 54 ..............Indian Machine Tools Manufacturers’ Association .....................+91-80-66246600..........................imtma@imtma.in .................................................... www.imtma.in 25 ..............ISMT Limited...............................................................................+91-20-66024901 ..........................sachin.joshi@ismt.co.in........................................... www.ismt.com 63 ..............Jyoti CNC Automation Pvt. Ltd. ...................................................+91-2827-287081 ..........................info@jyoti.co.in ....................................................... www.jyoti.co.in FIC..............Kamal Envirotech Pvt Ltd ...........................................................+91-9650600413 ...........................enquiry@kamalcedsolution.com ............................ www.kamalenvirotechgroup.com FGF.............Larsen & Toubro Limited ............................................................+91-9967800456 ...........................SM.Haridas@larsentoubro.com ............................... www.larsentoubro.com 33...............Lubrizol Advanced Materials India Pvt. Ltd................................+91-22-66027800 .........................Estane-SA@lubrizol.com ........................................ www.lubrizol.com/engineeredpolymers 5 ................M And M Auto Indus Ltd .............................................................+91-124-4763200...........................corporate@mandmsprings.com.............................. www.mandmsprings.com 44 ..............Wagner .......................................................................................+91-124-4121626 ...........................imtiaz.ahmed@wagner-group.com......................... www.wagner-group.com 34 ..............Maha India Automotive Testing Equipments .............................+91-11-40601464 ..........................raj.rengarajan@maha-india.in................................ www.maha-india.in 9 ................Mahindra & Mahindra ................................................................+1800-22-6006 ..............................customercare@mahindra.com ................................ www.mahindrasmallcv.com 7 ................Mahindra Navistar Automotive Pvt Ltd ......................................+1800-200-3600 ............................now24x7@mahindranavistar.com ........................... www.mahindranavistar.com 43...............Makino India Private Limited .....................................................+91-80-28419500 ..........................slim@makino.co.in .................................................. www.makino.com 30 ..............Mecolam Engineering Pvt Ltd ....................................................+91-80-25732919 ..........................info@mecolam.com ................................................ www.mecolam.com 40 ..............Meiban Engineering Technologies Pvt Ltd .................................+91-80-26860600 ..........................sales-turning@meibanengg.com ............................ www.meibanengg.com 15...............Meritor HVS (India) Limited ........................................................+91-821-2403235...........................meritor.mysore@meritor.com

......................... www.mhvsil.com

BC ..............Micromatic Machine Tools..........................................................+91-80-41492285 ..........................mmtblr@acemicromatic.com ................................. www.acemicromatic.com 10...............Mipox..........................................................................................+91-80-65830898..........................rag-rao@mipox.co.jp............................................... www.mipoxindia.com 22 ..............MMC Hardmetal India Pvt Ltd ....................................................+91-80-23516083 ..........................mmcindia@mmc.co.jp ............................................ www.mitsubishicarbide.com 31...............Oetiker India Pvt Ltd ..................................................................+91-2192-250107 ...........................akeswani@oetiker.com ........................................... www.oetiker.com 59...............Omron Automation Pvt. Ltd. ......................................................+91-80-40726400..........................in_enquiry@ap.omron.com .................................... www.omron-ap.com 47...............Padmini VNA Mechatronics Pvt. Ltd...........................................+91-124-3207398 ...........................sales@padminiengg.com ........................................ www.padminivna.com 20 ..............Patvin Engineering (P) Ltd ..........................................................+91-22-27780310...........................patvin@patvin.co.in ................................................ www.patvin.co.in 16...............Precision Components Corporation ...........................................+91-40-65229339 ..........................info@dynatherm.in ................................................. www.dynatherm.in 37...............Premier Ltd.................................................................................+91-20-66310000 ..........................mtdsales@premier.co.in.......................................... www.premier.co.in 24...............Presto Stantest Private Limited ..................................................+91-129-4272727 ..........................presto@vsnl.com ..................................................... www.prestogroup.com 8 ................Rohan Standox Autolack.............................................................+91-22-65803331 ..........................sales@spraytec.net ................................................. www.spraytec.net 6 ................Safexpress Private Limited .........................................................+1800-113-113 ...............................suyash.srivastava@safexpress.com ......................... www.safexpress.com 62 ..............Seamless Autotech Pvt Ltd .........................................................+91-2135-662428 ..........................info@seamlessautotech.com .................................. www.seamlessautotech.com 38 ..............Shimadzu Analytical (I) Pvt. Ltd..................................................+91-22-29204741 ...........................info@shimadzu.in ................................................... www.shimadzu.in 53 ..............Shriram Pistons & Rings Ltd .......................................................+91-11-23315941 ...........................aarti.anandan@shrirampistons.com 9 ................Shriram Transport Finance Company Limited ............................+91-22-40959595 ........................................................................................................... www.stfc.in 18...............Sreelakshmi Traders ...................................................................+91-44-24343343 ..........................sreelakshmitraders@gmail.com.............................. www.sreelakshmitraders.com 26...............Starragheckert Machine Tools Pvt. Ltd .......................................+91-80-42770600..........................sales.in@starragheckert.com .................................. www.starragheckert.com 55...............Subros Ltd...................................................................................+91-11-23414946 ...........................pmehra@subros.com .............................................. www.subroslimited.com 39...............Tata Motors Ltd...........................................................................+91-22-66561866 ..........................charu.gulati@tatamotors.com ................................ www.tatamotors.com 36 ..............Techno Spring Industries ............................................................+91-129-4024488 ..........................vikastantia@technospringindia.com....................... www.technospringindia.com 17...............The Indian Electric Co.................................................................+91-20-24475845 ..........................iecmktg@indianelectric.com .................................. www.indianelectric.com 28 ..............TKW Fasteners Pvt Ltd ................................................................+91-124-4081711 ...........................tarun@tkwfasteners.com ........................................ www.tkwfasteners.com 51...............Varroc Engineering Pvt Ltd .........................................................+91-240-2556227 ..........................varroc.info@varrocgroup.com ................................ www.varrocgroup.com 27 ..............Volvo India Pvt Ltd ............................................................................................................................................................................................................. www.volvobuses.co.in 23 ..............Yamazaki Mazak India Pvt Ltd ...................................................+91-2137-668800 ..........................sudhir_patankar@mazakindia.com ........................ www.mazak.com Q Our consistent advertisers

(UTTARAKHAND)

16 - 30 September 2011

Auto Monitor

GLOBAL WATCH

International auto round-up Swedish court rejects Saab creditor protection plea

Bosch expects record sales for 2011

A Swedish court rejected an application by ailing carmaker Saab for protection from creditors to give it breathing space to solve a cash crisis and get funds from Chinese investors. The Vanersborg district court in western Sweden said that there was no reason to believe a new creditor protection process, known as a reconstruction, would work. Saab said in a statement that it is disappointed with the ruling and will appeal the decision. Saab went through the process in 2009-2010 when it was owned by GM. Saab owner Swedish Automobile NV said it wanted the court’s protection to stop creditors’ payment demands from pushing the carmaker into bankruptcy and allow it to work on securing its future. Saab CEO Victor Muller recently said that the automaker currently owes 150 million Euros ($210 million) to suppliers. In June, Saab said two Chinese car companies, Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile, had agreed to take a combined majority stake in the ﬁ rm for a total of Euro 245 million.

Robert Bosch expects record sales this year according to the automotive unit head Bernd Bohr. “For 2011, we expect growth of at least 10 percent and thus would surpass the Euro 30 billion mark for vehicle technology for the ﬁ rst time. The drivers are mainly our products for environmental and accident protection,” Bohr told Automotive News Europe in a recent interview. Bohr sees risks ahead, such as a slowdown in China, the world’s biggest car market, as well as rising raw material prices and growing economic volatility. Bosch will spend more than Euro 3.2 billion this year on research and development for the vehicle technology division.

Toyota stops exporting Camrys to North America Toyota says it’s no longer exporting Camry sedans from Japan to North America, where the best-selling car is also manufactured—a decision that makes ﬁ nancial sense for the automaker as the yen soars against the dollar, according to an Associated Press report. Toyota exported only about 1,700 Camry cars from Japan last year, and only when demand was so great that North American production couldn’t keep up. Camry is now manufactured in Japan, the US, Australia, Thailand and China.

Russia August auto sales up 32 percent Russian car sales rose 32 percent year-on-year in August after increasing by 27 percent in July, the Association of European Businesses said. The group also said it expects annual sales growth of about 30 percent. In the period from January to August the Russian car market expanded by 48 percent in year-on-year terms, with 544,850 units sold. AvtoVAZ’s Lada brand maintained its large sales lead with a 23 percent rise in volume to 392,999 unit through August. Chevrolet ranks No 2 in the country after eight months with sales up 59 percent to 111,611. Kia is third with 100,355 sales and Renault is not far behind with a volume of 99,642 cars.

Audi new-car sales rise on China, Germany growth Audi sold 94,100 cars in August, a rise of 17 percent over 2010 figures, thanks mostly to growth in China and Germany and continued strong demand for the new A6 model. Since the beginning of the year, the company has sold a total of 853,000 cars worldwide, a rise of 17 percent over 2010 figures. Audi sales were boosted by strong growth in its biggest export markets, China, the US and the UK, while sales in Germany also grew significantly. In China (including Hong Kong), Audi’s biggest market, the automaker sold 28,068 cars in August, a rise of 26 percent over 2010 figures. Since January the carmaker has delivered 196,534 cars in the region, a rise of 29 percent. In Germany, where car industry group VDA raised its 2011 outlook for the car market last week, Audi’s August sales rose 20 percent to reach 18,506 deliveries. Overall sales this year, in the automaker’s second-largest single market, rose 16 percent to 165,020 cars. In the US, the brand sold 10,201 units last month, a rise of 11 percent. Between January and August, total sales in the brand’s third-largest market grew to 75,256 units, a rise of 15 percent over 2010 figures.

Honda recalling 86,000 vehicles in US for fire, rollaway concerns Honda said that it is recalling nearly 86,000 vehicles in two separate campaigns— including one to address possible fi re concerns. With the new recalls, Honda has now called back more vehicles than it did in all of 2010. Honda said it is recalling 80,111 2006 CR-V vehicles to replace the power window master switch—after the US government said it had reports of five fi res. The design of the power window master switch can allow residue from interior cleaners to accumulate, which can, over time with switch use, cause the electrical contacts to degrade and lead to a fi re in the switch, the Japanese automaker said. Honda said no injuries or deaths have been reported in connection with the CR-V issue. Honda will voluntarily recall 5,626 2011 CR-Z in the United States equipped with manual transmissions to update the software that controls the hybrid electric motor. The company said when the gasoline engine has stalled with the battery in a very low state of charge and the transmission in gear; it is possible for the electric motor to rotate in the direction opposite to that selected by the transmission. If this occurs and the driver has not engaged the brakes, the vehicle might slowly roll in an unexpected direction.

Daimler to test Smart electric cars in Hong Kong Daimler will provide a trial version of its Smart electric car to partners in Hong Kong as the city battles record pollution. Daimler’s partners in the trial, which include the Hong Kong Jockey Club and Swire Coca-Cola HK, will use the two-seater car for six to 12 months, the carmaker said in a statement. Daimler’s Mercedes Benz unit will offer a service centre with technicians and mechanics. The pilot programme, which will run for four years, joins a push by automakers such as Mitsubishi and Nissan to introduce electric vehicles in Hong Kong, where pollution reached ‘very high’ levels on a record one in four days in 2010, according to government data.

Chrysler to debut its eight speed transmission Chrysler said that it will introduce an eight-speed automatic transmission this year, according to a report in The Detroit News. The new transmission, which is more fuel-efﬁcient than the ﬁve-speed and six-speed gearboxes that dominate the market, will debut on the 2012 Chrysler 300C and Dodge Charger. Mated to Chrysler’s Pentastar V-6, it yields a four-mile-per-gallon increase on the highway, delivering an estimated 31 mpg on the base rear-wheel-drive model, the company said. More gear ratios translate into smaller shift gaps and smoother shifting. It also features a ‘sport’ shift mode for more aggressive performance. Luxury brands like Audi, Bentley, BMW, Range Rover and Rolls Royce already offer eight-speed gearboxes. Chrysler will initially purchase the transmissions from Germany’s ZF Friedrichshafen AG, then build them under license at its Kokomo Transmission Plant in Indiana. The shift is expected to occur within a year.

HCV Cargo Body

LCV Container

Insulated Van

Refrigerated Van

Auto Monitor

16 - 30 September 2011

N AMERICAN ASSEMBLY

AUTOFACTS Global Automotive Outlook PricewaterhouseCoopers LLP

North America Assby Tracking 7-2011 (Tracking by Brand & Nameplate) July 2011 Ownership Org/

Last 3 Months YOY

Assembly

YOY Share Chg

Volume

Year to Date YOY

Assembly

YOY

% Chg

Share %

Share Chg

Volume

YOY

Assembly

YOY

% Chg

Share %

Share Chg

Brand & Nameplate

Volume

% Chg

Share %

AutoAlliance International (USA)

5,708

16.9%

0.7%

0.1

28,560

-20.8%

1.0%

(-0.3)

62,631

-15.9%

0.9%

(-0.2)

Ford Mustang

4,301

40.4%

0.5%

0.1

23,312

-14.3%

0.8%

(-0.2)

44,809

-13.6%

0.6%

(-0.2)

Mazda Mazda6

1,407

-22.6%

0.2%

(-0.1)

5,248

-40.9%

0.2%

(-0.1)

17,822

-21.1%

0.2%

(-0.1)

BMW (Germany)

19,481

196.4%

2.4%

1.6

68,172

115.2%

2.3%

1.2

155,027

90.8%

2.1%

0.9

BMW X3

8,402

1.0%

1.0

29,824

1.0%

1.0

66,795

0.9%

0.9

BMW X5

7,888

73.0%

1.0%

0.4

27,360

24.5%

0.9%

0.2

62,032

10.0%

0.8%

0.0

BMW X6

3,191

58.5%

0.4%

0.1

10,988

13.3%

0.4%

0.0

26,200

5.3%

0.4%

(-0.0)

Chrysler Group LLC (USA)

143,722

66.2%

17.8%

6.9

495,131

26.6%

16.6%

3.1

1,144,744

28.1%

15.7%

2.5 0.9

Chrysler 200

7,947

1.0%

1.0

30,767

1.0%

1.0

68,643

0.9%

Chrysler 300

4,688

247.8%

0.6%

0.4

17,863

97.7%

0.6%

0.3

31,881

25.9%

0.4%

0.1

Chrysler PT Cruiser

-100.0%

(-0.1)

-100.0%

(-0.2)

-100.0%

(-0.2)

Chrysler Sebring

-100.0%

(-0.2)

-100.0%

(-0.3)

-100.0%

(-0.4)

Chrysler Town & Country

4,994

-30.0%

0.6%

(-0.3)

27,017

-27.6%

0.9%

(-0.4)

60,999

-21.5%

0.8%

(-0.3)

Dodge Avenger

2,623

-23.4%

0.3%

(-0.1)

14,916

-10.4%

0.5%

(-0.1)

41,327

17.4%

0.6%

0.0

Dodge Caliber

5,654

214.5%

0.7%

0.5

20,791

-0.4%

0.7%

(-0.0)

37,960

-15.2%

0.5%

(-0.1)

Dodge Caravan

8,595

29.1%

1.1%

0.2

39,075

3.0%

1.3%

0.0

94,376

3.3%

1.3%

(-0.1)

Dodge Challenger

3,303

108.5%

0.4%

0.2

13,010

37.2%

0.4%

0.1

25,152

5.2%

0.3%

(-0.0)

Dodge Charger

7,058

110.9%

0.9%

0.5

23,548

-5.9%

0.8%

(-0.1)

56,659

-2.9%

0.8%

(-0.1) 0.0

Dodge Dakota

2,722

259.1%

0.3%

0.2

6,058

20.0%

0.2%

0.0

14,973

41.9%

0.2%

Dodge Durango

5,274

0.7%

0.7

19,954

0.7%

0.7

49,193

0.7%

0.7

Dodge Journey

11,086

2.1%

1.4%

0.0

27,781

0.0%

0.9%

(-0.0)

61,489

-12.6%

0.8%

(-0.2)

Dodge Nitro

1,728

89.5%

0.2%

0.1

5,871

13.6%

0.2%

0.0

14,544

6.3%

0.2%

(-0.0)

Dodge Ram Pickup

-100.0%

(-1.1)

Dodge Viper

-100.0%

(-0.0)

-100.0%

(-0.0)

Fiat 500

4,445

0.5%

0.5

18,802

0.6%

0.6

30,300

0.4%

0.4

Fiat Freemont

2,793

0.3%

0.3

9,687

0.3%

0.3

13,517

0.2%

0.2

Jeep Commander

-100.0%

(-0.1)

Jeep Compass

11,296

574.0%

1.4%

1.2

32,656

213.0%

1.1%

0.7

68,267

196.0%

0.9%

0.6

Jeep Grand Cherokee

9,105

0.9%

1.1%

(-0.0)

37,511

118.6%

1.3%

0.7

89,197

121.9%

1.2%

0.6

Jeep Liberty

6,406

91.2%

0.8%

0.4

16,883

-7.5%

0.6%

(-0.1)

40,435

7.7%

0.6%

(-0.0)

Jeep Patriot

9,263

110.1%

1.1%

0.6

24,405

35.7%

0.8%

0.2

53,999

67.1%

0.7%

0.3

Jeep Wrangler

4,008

-26.6%

0.5%

(-0.2)

12,238

-32.0%

0.4%

(-0.2)

34,227

-2.5%

0.5%

(-0.0)

Jeep Wrangler Unlimited

6,466

-16.9%

0.8%

(-0.2)

20,531

-15.9%

0.7%

(-0.2)

56,506

8.1%

0.8%

0.0

Lancia Grand Voyager

Ram Pickup

23,199

72.6%

2.9%

1.2

72,382

1.6%

2.4%

(-0.0)

189,952

101.8%

2.6%

1.2

Volkswagen Routan

1,069

-10.3%

0.1%

(-0.0)

3,385

-12.9%

0.1%

(-0.0)

11,148

-6.2%

0.2%

(-0.0)

Daimler AG (Germany)

3,426

-43.5%

0.4%

(-0.3)

33,119

13.3%

1.1%

0.1

82,492

10.0%

1.1%

0.0

Freightliner Sprinter

346

15.0%

0.0%

0.0

1,831

26.0%

0.1%

0.0

4,660

25.4%

0.1%

0.0

Mercedes-Benz GL-Class

704

-51.8%

0.1%

(-0.1)

7,584

7.8%

0.3%

0.0

18,224

0.9%

0.2%

(-0.0)

Mercedes-Benz M-Class

1,936

-45.2%

0.2%

(-0.2)

19,824

16.5%

0.7%

0.1

49,664

13.7%

0.7%

0.0

Mercedes-Benz R-Class

440

-43.1%

0.1%

(-0.0)

3,880

4.2%

0.1%

0.0

9,944

4.0%

0.1%

(-0.0)

Ford Motor Company (USA)

159,050

15.2%

19.6%

2.3

648,891

13.0%

21.7%

1.9

1,478,132

12.7%

20.2%

0.9

Ford Crown Victoria

5,429

462.6%

0.7%

0.5

22,885

112.8%

0.8%

0.4

53,534

92.1%

0.7%

0.3

Ford Econoline

4,968

-11.2%

0.6%

(-0.1)

28,113

0.5%

0.9%

(-0.0)

81,598

11.5%

1.1%

0.0

Ford Edge

10,410

40.8%

1.3%

0.4

38,975

12.0%

1.3%

0.1

95,949

9.9%

1.3%

0.0

Ford Escape

22,278

68.4%

2.8%

1.1

79,691

28.1%

2.7%

0.5

187,693

18.8%

2.6%

0.2

Ford Expedition

2,398

-14.6%

0.3%

(-0.1)

12,549

-2.6%

0.4%

(-0.0)

30,736

18.8%

0.4%

0.0

Ford Explorer

9,219

170.5%

1.1%

0.7

40,705

129.3%

1.4%

0.7

89,444

107.5%

1.2%

0.6

Ford Explorer Sport Trac

-100.0%

(-0.1)

-100.0%

(-0.1)

-100.0%

(-0.1)

Ford Fiesta

9,057

3.6%

1.1%

0.0

30,945

30.9%

1.0%

0.2

70,421

190.1%

1.0%

0.6

Ford Flex

2,033

-12.9%

0.3%

(-0.0)

7,934

-24.9%

0.3%

(-0.1)

16,996

-37.0%

0.2%

(-0.2)

Ford Focus

11,400

-35.1%

1.4%

(-0.8)

58,845

-3.1%

2.0%

(-0.1)

103,917

-9.6%

1.4%

(-0.3)

Ford F-Series

35,948

-13.2%

4.4%

(-0.8)

170,390

2.6%

5.7%

(-0.0)

400,836

12.8%

5.5%

0.2

Ford Fusion

28,555

101.4%

3.5%

1.7

85,553

34.8%

2.9%

0.7

176,274

17.3%

2.4%

0.2

Ford Ranger

5,484

-9.8%

0.7%

(-0.1)

24,767

13.2%

0.8%

0.1

57,756

20.5%

0.8%

0.1

Ford Taurus

3,759

-21.7%

0.5%

(-0.1)

18,165

-0.1%

0.6%

(-0.0)

43,405

-15.4%

0.6%

(-0.2)

Lincoln Mark LT

-58.5%

0.0%

(-0.0)

115

-47.2%

0.0%

(-0.0)

248

-57.5%

0.0%

(-0.0)

Lincoln MKS

896

6.8%

0.1%

0.0

2,983

3.8%

0.1%

0.0

6,810

-29.9%

0.1%

(-0.1)

Lincoln MKT

220

-6.8%

0.0%

(-0.0)

1,163

1.9%

0.0%

(-0.0)

2,971

-29.3%

0.0%

(-0.0)

Lincoln MKX

1,755

0.2%

(-0.0)

8,757

62.9%

0.3%

0.1

19,760

32.7%

0.3%

0.1

Lincoln MKZ

2,857

251.4%

0.4%

0.3

8,228

98.8%

0.3%

0.1

19,883

59.6%

0.3%

0.1

Lincoln Navigator

428

-22.7%

0.1%

(-0.0)

2,517

-9.4%

0.1%

(-0.0)

5,941

11.0%

0.1%

0.0

Lincoln Town Car

1,158

235.7%

0.1%

0.1

4,030

66.5%

0.1%

0.1

9,074

21.1%

0.1%

0.0

Mazda B-Series

-100.0%

(-0.0)

-100.0%

(-0.0) (-0.0)

Mazda Tribute

744

123.4%

0.1%

0.0

1,581

24.3%

0.1%

0.0

4,721

-18.5%

0.1%

Mercury Grand Marquis

-100.0%

(-0.2)

-100.0%

(-0.3)

165

-99.2%

0.0%

(-0.3)

Mercury Mariner

-100.0%

(-0.2)

-100.0%

(-0.3)

-100.0%

(-0.2)

Mercury Milan

-100.0%

(-0.1)

-100.0%

(-0.1)

-100.0%

(-0.2)

Mercury Mountaineer

-100.0%

(-0.0)

-100.0%

(-0.0)

-100.0%

(-0.0)

Fuji Heavy Industries (Japan)

10,498

-12.9%

1.3%

(-0.2)

44,586

-8.9%

1.5%

(-0.2)

126,556

-2.3%

1.7%

(-0.2)

Subaru Legacy

6,076

-18.3%

0.8%

(-0.2)

29,444

4.5%

1.0%

0.0

80,186

4.8%

1.1%

(-0.0)

Subaru Tribeca

297

58.8%

0.0%

0.0

1,390

54.6%

0.0%

0.0

3,695

18.3%

0.1%

0.0

Toyota Camry

4,125

-6.9%

0.5%

(-0.0)

13,752

-30.7%

0.5%

(-0.2)

42,675

-14.4%

0.6%

(-0.2)

General Motors Company (USA)

177,031

-12.1%

21.9%

(-3.5)

732,647

4.3%

24.5%

0.3

1,787,079

11.8%

24.5%

0.9

Buick Enclave

5,563

-4.0%

0.7%

(-0.0)

18,906

-3.2%

0.6%

(-0.0)

45,747

1.9%

0.6%

(-0.0)

Buick LaCrosse

2,536

-57.3%

0.3%

(-0.4)

14,417

-29.9%

0.5%

(-0.2)

36,925

-19.1%

0.5%

(-0.2)

Buick Lucerne

-100.0%

(-0.4)

3,373

-63.2%

0.1%

(-0.2)

15,882

3.6%

0.2%

(-0.0)

Buick Regal

568

0.1%

0.1

3,295

0.1%

0.1

8,256

0.1%

0.1

Cadillac CTS

2,770

-48.4%

0.3%

(-0.3)

10,226

-27.5%

0.3%

(-0.1)

33,883

-1.3%

0.5%

(-0.0)

Cadillac DTS

-100.0%

(-0.2)

1,121

-84.4%

0.0%

(-0.2)

6,515

-46.4%

0.1%

(-0.1)

10,275

-28.3%

Cadillac Escalade

906

-22.2%

0.1%

(-0.0)

Cadillac Escalade ESV

575

-25.2%

0.1%

(-0.0)

2,034

-22.1%

0.1%

(-0.0)

4,319

-31.6%

0.1%

(-0.0)

Cadillac Escalade EXT

175

10.8%

0.0%

0.0

520

3,867

-30.9%

-28.9%

0.0%

0.1%

(-0.0)

1,498

-5.4%

0.0%

0.1%

(-0.0)

(-0.1)

Cadillac SRX

7,461

35.0%

0.9%

0.2

21,674

15.7%

0.7%

0.1

49,017

16.8%

0.7%

0.1

Cadillac STS

-100.0%

(-0.0)

-100.0%

(-0.0)

1,907

-31.0%

0.0%

(-0.0)

Chevrolet Avalanche

2,708

1.1%

0.3%

(-0.0)

7,465

-6.8%

0.2%

(-0.0)

15,291

-0.9%

0.2%

(-0.0)

Chevrolet Aveo

5,416

12.6%

0.7%

0.1

17,179

20.5%

0.6%

0.1

37,442

15.2%

0.5%

0.0

Chevrolet C2

2,930

-24.5%

0.4%

(-0.1)

8,913

-38.2%

0.3%

(-0.2)

24,771

-28.0%

0.3%

(-0.2)

Chevrolet Camaro

4,522

-9.1%

0.6%

(-0.1)

25,998

1.2%

0.9%

(-0.0)

63,876

3.5%

0.9%

(-0.0)

Chevrolet Captiva

3,349

44.1%

0.4%

0.1

8,837

-0.3%

0.3%

(-0.0)

19,873

18.0%

0.3%

0.0

16 - 30 September 2011

Auto Monitor

N AMERICAN ASSEMBLY July 2011

Last 3 Months Assembly Share %

YOY Share Chg

Year to Date

Ownership Org/ Brand & Nameplate

Volume

YOY % Chg

Chevrolet Cobalt

-100.0%

(-1.0)

-100.0%

(-1.4)

Chevrolet Colorado

2,434

330.0%

0.3%

0.2

9,673

20.1%

0.3%

0.0

22,906

17.0%

0.3%

0.0

Chevrolet Corvette

616

-53.1%

0.1%

(-0.1)

3,473

-20.8%

0.1%

(-0.0)

7,541

-28.2%

0.1%

(-0.1)

Chevrolet Cruze

14,095

1890.8%

1.7%

1.7

69,193

9673.0%

2.3%

2.3

166,662

23439.8%

2.3%

2.3

Chevrolet Equinox

7,903

-6.5%

1.0%

(-0.1)

48,424

33.7%

1.6%

0.4

130,345

43.6%

1.8%

0.4

Volume

YOY % Chg

Assembly Share %

YOY Share Chg

Volume

YOY % Chg

Assembly Share %

YOY Share Chg

Chevrolet Express

6,349

9.0%

0.8%

0.1

21,908

16.6%

0.7%

0.1

46,273

19.6%

0.6%

0.1

Chevrolet HHR

-100.0%

(-0.8)

5,676

-72.2%

0.2%

(-0.5)

29,460

-28.9%

0.4%

(-0.2)

7,352

1.4%

0.9%

(-0.0)

Chevrolet Impala

(-0.0)

41,762

3.6%

1.4%

0.0

113,299

6.7%

1.6%

Chevrolet Malibu

11,649

-43.8%

1.4%

(-1.2)

56,708

-12.6%

1.9%

(-0.3)

125,104

-7.0%

1.7%

Chevrolet Silverado

28,927

-20.9%

3.6%

(-1.0)

125,755

11.1%

4.2%

0.3

293,936

14.8%

4.0%

0.2

Chevrolet Suburban

5,185

45.1%

0.6%

0.2

16,305

7.0%

0.5%

0.0

33,742

-0.8%

0.5%

(-0.0)

Chevrolet Tahoe

9,634

35.1%

1.2%

0.3

27,340

10.6%

0.9%

0.1

61,455

2.3%

0.8%

(-0.0)

Chevrolet Traverse

10,350

-29.8%

1.3%

(-0.6)

31,256

-23.4%

1.0%

(-0.4)

71,698

12.9%

1.0%

0.0

Chevrolet Volt

637

0.1%

0.1

1,228

0.0%

0.0

3,906

0.1%

0.1

GMC Acadia

6,206

-15.2%

0.8%

(-0.2)

20,481

2.8%

0.7%

(-0.0)

52,081

18.3%

0.7%

0.1

GMC Canyon

1,391

267.0%

0.2%

0.1

3,673

28.4%

0.1%

0.0

7,191

-2.7%

0.1%

(-0.0)

GMC Savana

1,712

-10.6%

0.2%

(-0.0)

5,015

-5.4%

0.2%

(-0.0)

15,724

20.8%

0.2%

0.0

GMC Sierra Pickups

14,280

-21.4%

1.8%

(-0.5)

54,027

9.2%

1.8%

0.1

120,378

5.5%

1.6%

(-0.0)

(-0.3)

GMC Terrain

3,665

3.8%

0.5%

0.0

22,369

52.0%

0.7%

0.2

60,717

66.8%

0.8%

0.3

GMC Yukon

2,498

-48.1%

0.3%

(-0.3)

12,107

-2.6%

0.4%

(-0.0)

28,766

-1.2%

0.4%

(-0.0)

GMC Yukon XL

2,616

-2.8%

0.3%

(-0.0)

8,213

0.0%

0.3%

(-0.0)

19,961

3.0%

0.3%

(-0.0)

Hummer H3

-100.0%

(-0.0)

-100.0%

(-0.0)

Hummer H3T

-100.0%

(-0.0)

Saab 9-4X

0.0%

0.0

236

0.0%

0.0

457

0.0%

0.0

Saturn Outlook

-100.0%

(-0.0)

Saturn VUE

-100.0%

(-0.0)

-100.0%

(-0.0)

Honda Motor Company (Japan)

49,323

-51.6%

6.1%

(-6.7)

171,979

-44.9%

5.7%

(-5.0)

559,978

-25.8%

7.7%

(-3.5)

Acura CSX

-100.0%

(-0.0)

-100.0%

(-0.0)

1,170

-11.4%

0.0%

(-0.0)

Acura MDX

2,184

-62.9%

0.3%

(-0.5)

8,518

-47.0%

0.3%

(-0.3)

29,309

-22.4%

0.4%

(-0.2)

Acura RDX

763

-48.5%

0.1%

(-0.1)

2,141

-50.9%

0.1%

(-0.1)

8,203

-29.3%

0.1%

(-0.1)

Acura TL

1,724

-53.2%

0.2%

(-0.3)

5,695

-30.9%

0.2%

(-0.1)

17,085

-19.0%

0.2%

(-0.1)

Acura ZDX

-93.3%

0.0%

(-0.0)

-91.8%

0.0%

(-0.0)

561

-87.4%

0.0%

(-0.1)

Honda Accord

10,703

-52.3%

1.3%

(-1.5)

35,672

-50.4%

1.2%

(-1.3)

118,120

-31.6%

1.6%

(-0.9)

Honda Civic

9,817

-60.4%

1.2%

(-1.9)

41,922

-44.8%

1.4%

(-1.2)

124,111

-31.1%

1.7%

(-1.0)

Honda Crosstour

1,263

-49.1%

0.2%

(-0.2)

3,786

-57.7%

0.1%

(-0.2)

9,920

-61.3%

0.1%

(-0.2)

Honda CR-V

10,711

-44.2%

1.3%

(-1.1)

33,564

-42.6%

1.1%

(-0.9)

110,313

-21.6%

1.5%

(-0.6)

Honda Element

-100.0%

(-0.1)

-100.0%

(-0.1)

7,500

-19.9%

0.1%

(-0.0)

Honda Odyssey

6,789

-34.1%

0.8%

(-0.5)

21,282

-29.5%

0.7%

(-0.3)

64,642

-5.2%

0.9%

(-0.1)

Honda Pilot

5,359

-44.2%

0.7%

(-0.5)

19,328

-34.8%

0.6%

(-0.4)

64,274

-6.4%

0.9%

(-0.1)

Honda Ridgeline

-100.0%

(-0.1)

-100.0%

(-0.1)

4,770

-63.8%

0.1%

(-0.1)

Hyundai Motor Company (South Korea) 46,121

41.6%

5.7%

1.6

146,405

35.7%

4.9%

1.2

345,810

42.4%

4.7%

1.2

Hyundai Elantra/i30

5,480

0.7%

0.7

30,049

1.0%

1.0

71,493

1.0%

1.0

Hyundai Santa Fe

9,454

21.8%

1.2%

0.2

25,672

10.2%

0.9%

0.1

60,406

11.9%

0.8%

0.0

Hyundai Sonata/i40

17,220

19.5%

2.1%

0.3

52,973

-0.9%

1.8%

(-0.1)

126,207

8.3%

1.7%

0.0

Kia Sorento

13,967

34.4%

1.7%

0.4

37,711

20.9%

1.3%

0.2

87,704

21.4%

1.2%

0.1

Mitsubishi Motors Corp (Japan)

3,795

48.7%

0.5%

0.1

11,069

119.5%

0.4%

0.2

25,999

66.1%

0.4%

0.1

Mitsubishi Eclipse

747

-20.0%

0.1%

(-0.0)

3,146

23.4%

0.1%

0.0

6,163

38.5%

0.1%

0.0

Mitsubishi Endeavor

1,714

216.2%

0.2%

0.1

4,594

337.1%

0.2%

0.1

8,380

165.7%

0.1%

0.1

Mitsubishi Galant

1,334

24.0%

0.2%

0.0

3,329

130.9%

0.1%

0.1

11,456

42.3%

0.2%

0.0

Nissan Motor (Japan)

69,852

-6.7%

8.6%

(-0.8)

273,707

13.2%

9.1%

0.8

620,422

10.4%

8.5%

0.2

Infiniti QX series

-100.0%

(-0.0)

Nissan Altima

22,228

42.7%

2.7%

0.8

74,277

19.2%

2.5%

0.3

172,011

8.8%

2.4%

0.0

Nissan Armada

1,126

-18.0%

0.1%

(-0.0)

4,537

-31.2%

0.2%

(-0.1)

11,730

-12.3%

0.2%

(-0.0)

Nissan Frontier

4,155

15.6%

0.5%

0.1

14,577

18.9%

0.5%

0.1

32,474

12.8%

0.4%

0.0

Nissan March

3,427

0.4

9,021

0.3%

0.3

13,447

Nissan Maxima

4,644

3.2%

0.6%

0.0

16,869

-2.5%

0.6%

(-0.0)

39,737

-4.6%

0.5%

(-0.1)

Nissan NV-Series

1,111

0.1%

0.4%

0.1

5,455

0.2%

0.2

9,443

0.1%

0.2%

0.1

0.2

Nissan Pathfinder

2,129

33.8%

0.3%

0.1

7,712

32.6%

0.3%

0.1

20,238

35.8%

0.3%

0.1

Nissan Pickup

3,392

50.9%

0.4%

0.1

12,768

85.4%

0.4%

0.2

26,393

73.3%

0.4%

0.1

Nissan Sentra

7,796

-39.8%

1.0%

(-0.7)

40,771

12.4%

1.4%

0.1

93,895

19.2%

1.3%

0.1

Nissan Tiida

7,579

6.9%

0.9%

0.0

36,563

91.8%

1.2%

0.6

58,106

54.3%

0.8%

0.2

Nissan Titan

1,493

-38.3%

0.2%

(-0.1)

5,992

-10.4%

0.2%

(-0.0)

15,481

-8.1%

0.2%

(-0.0)

Nissan Tsuru

1,014

-80.2%

0.1%

(-0.5)

14,606

-17.1%

0.5%

(-0.1)

38,195

-8.9%

0.5%

(-0.1)

Nissan Versa

7,868

-52.4%

1.0%

(-1.1)

24,136

-45.7%

0.8%

(-0.7)

74,400

-22.5%

1.0%

(-0.4)

Nissan Xterra

1,670

-3.9%

0.2%

(-0.0)

5,813

-4.2%

0.2%

(-0.0)

13,612

-5.5%

0.2%

(-0.0)

Suzuki Equator

220

46.7%

0.0%

0.0

610

45.2%

0.0%

0.0

1,260

46.5%

0.0%

0.0

NUMMI (USA)

-100.0%

(-1.3)

Toyota Corolla

-100.0%

(-0.9)

Toyota Tacoma

-100.0%

(-0.4)

Tesla Motors (USA)

150

105.5%

0.0%

0.0

471

116.1%

0.0%

0.0

1,088

115.0%

0.0%

Tesla Roadster

150

105.5%

0.0%

0.0

471

116.1%

0.0%

0.0

1,088

115.0%

0.0%

0.0

Toyota Motor Corporation (Japan)

63,395

-24.8%

7.8%

(-2.8)

179,036

-43.8%

6.0%

(-5.0)

596,504

-16.3%

8.2%

(-2.3)

Lexus RX Series

2,782

-48.0%

0.3%

(-0.3)

8,052

-59.6%

0.3%

(-0.4)

33,096

-32.1%

0.5%

(-0.3)

Toyota Avalon

2,177

-31.6%

0.3%

(-0.1)

6,042

-58.5%

0.2%

(-0.3)

20,398

-18.7%

0.3%

(-0.1)

0.0

Toyota Camry

14,911

-21.8%

1.8%

(-0.6)

38,851

-41.5%

1.3%

(-1.0)

107,037

-35.4%

1.5%

(-1.0)

Toyota Corolla

12,484

-10.4%

1.5%

(-0.2)

33,344

-35.0%

1.1%

(-0.7)

105,082

-2.0%

1.4%

(-0.1)

Toyota Highlander

6,638

16.3%

0.8%

0.1

17,512

-10.5%

0.6%

(-0.1)

52,948

20.1%

0.7%

0.1

Toyota Matrix

1,558

-16.4%

0.2%

(-0.0)

3,975

-48.9%

0.1%

(-0.1)

9,756

-58.7%

0.1%

(-0.2)

Toyota RAV4

1,760

-84.4%

0.2%

(-1.2)

9,180

-78.1%

0.3%

(-1.1)

62,943

-18.1%

0.9%

(-0.3)

Toyota Sequoia

1,356

-9.4%

0.2%

(-0.0)

3,832

-35.0%

0.1%

(-0.1)

9,484

-24.6%

0.1%

(-0.1)

Toyota Sienna

8,199

-9.1%

1.0%

(-0.1)

21,717

-35.0%

0.7%

(-0.4)

65,453

-9.4%

0.9%

(-0.2)

Toyota Tacoma

6,294

-5.6%

0.8%

(-0.1)

17,722

10.6%

0.6%

0.0

56,950

66.6%

0.8%

0.3

Toyota Tundra

2,500

-12.7%

0.3%

(-0.1)

10,305

-62.8%

0.3%

(-0.6)

46,455

-25.3%

0.6%

(-0.3)

Toyota Venza

2,736

-30.4%

0.3%

(-0.2)

8,504

-38.5%

0.3%

(-0.2)

26,902

-33.3%

0.4%

(-0.2)

Volkswagen (Germany)

57,986

36.9%

7.2%

1.8

157,916

47.2%

5.3%

1.6

314,748

33.9%

4.3%

0.8

Volkswagen Beetle

2,022

0.2%

0.2

2,022

0.1%

0.1

2,022

0.0%

0.0

Volkswagen Bora

-83.6%

0.0%

(-0.1)

154

-96.0%

0.0%

(-0.1)

274

-97.3%

0.0%

(-0.1)

Volkswagen Golf/Jetta Variant

14,357

34.2%

1.8%

0.4

40,894

56.4%

1.4%

0.5

87,758

53.4%

1.2%

0.4

Volkswagen Jetta

33,498

34.2%

4.1%

1.0

95,416

56.4%

3.2%

1.1

204,765

53.4%

2.8%

0.8

Volkswagen New Beetle

-100.0%

(-0.8)

-100.0%

(-0.6)

-100.0%

(-0.5)

Volkswagen Passat

8,015

1.0%

1.0

19,430

0.6%

0.6

19,929

0.3%

0.3

Total Light Vehicle

809,538

1.9%

100.0%

2,991,689

2.9%

100.0%

7,301,210

7.7%

100.0%

Auto Monitor

16-30 September 2011

EUROPEAN SALES

New Vehicle Registration in Europe -by Manufacturer GROUP

BRAND

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

2011 MAY 158 66109 11871 39 78019

2010 MAY

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

% CHANGE

YEAR TILL DATE 2011

-18.97 25.14 8.21 8.33 22.22

999 278087 62903 228 341218

-100.00 71.57

2 1177

0 2 177 812 299 1696 2807 3126 72264 8262 165 80691 12950 87736 8549 9115 383 118733 117638 0 0 117638 15131 103004 26 118161 1882 6393 8275 1086 10265 10882 12911 44142 3510 14860 1241 98897

195 52830 10970 36 63836 0 4 102 0 2 7 115 1191 1303 1214 3708 2497 70780 7795 136 78711 8030 88884 7103 8904 530 113451 107026

-100.00 -71.43 53.91 -31.82 -77.05 39.70 -24.30 25.19 2.10 5.99 21.32 2.52 61.27 -1.29 20.36 2.37 -27.74 4.66 9.92

4 107030 15299 85687 136 101122 2491 6137 8628 1721 14996 15297 9304 34119 3525 15055 1336 95353

-100.00 9.91 -1.10 20.21 -80.88 16.85 -24.45 4.17 -4.09 -36.90 -31.55 -28.86 38.77 29.38 -0.43 -1.30 -7.11 3.72

6 6 1191 3413 1913 8402 13728 16008 327808 36214 931 364953 65609 416213 38337 43078 2126 565363 576907 2 5 576914 74900 487081 435 562416 9474 37493 46968 5869 69801 66960 66645 231491 19502 83412 7946 551626

34399 24230 619 59248 4089 30 4119

29143 21788 706 51637 3135 37 3172

18.04 11.21 -12.32 14.74 30.43 -18.92 29.85

172685 114973 2948 290606 20758 165 20923

4114 94362 107365 201727 22751 116025 3 138779 2759 43239 1838 45077 64130 27896 47642 179016 157 318841 3462 1153 23659 6664 31476 1436284

2963 89461 100691 190152 25434 116698 0 142132 2115 49098 1602 50700 55476 27389 40305 149640 172 272982 2268 1304 18121 4368 23793 1316560

38.85 5.48 6.63 6.09 -10.55 -0.58 -2.36 30.45 -11.93 14.73 -11.09 15.60 1.85 18.20 19.63 -8.72 16.80 52.65 -11.58 30.56 52.56 32.29 9.09

17368 440258 506844 947102 113870 597828 25 711723 14197 265379 11637 277016 295884 136087 216287 822725 836 1471819 17425 10454 114313 23157 147924 6957487

158 66098 11871 39 78008

-18.97 25.23 8.25 8.33 22.30

999 277898 62896 228 341022

-100.00 650.00

2 553

0 2 77 807 223 1625 2655

195 52781 10966 36 63783 0 4 10 0 2 7 23 1153 1254 1124 3531

-100.00 -71.43 234.78 -30.01 -82.22 44.57 -24.81

6 6 567 3011 1505 8057 12573

54689 8262

54644 7795

0.08 5.99

243531 36213

62951 12930 68239 22 9115 383 90689 101185 0 0 101185 15111

62439 8027 73435 108 8903 530 91003 93076

0.82 61.08 -7.08 -79.63 2.38 -27.74 -0.35 8.71

4 93080 15270

-100.00 8.71 -1.04

279744 65503 326913 279 43068 2126 437889 494520 2 5 494527 74760

0 175

0 75

GROUP

Jaguar Land Rover

Japan

Korea

MAN MG Rover Porsche PSA

Renault

Scania Toyota

Volkswagen AG

Other

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

Total

2011 MAY 95213 25 110349 1882 5440 7322 1086 10259 10726 11027 39668 3494 14787 166 91213

% CHANGE 18.90 -79.51 15.59 -24.45 -2.42 -9.22 -36.90 -31.57 -29.01 58.30 29.37 -0.65 -1.35 10.67 3.53

YEAR TILL DATE 2011 447316 360 522436 9471 31972 41443 5849 69775 65917 55370 206717 19439 83031 1596 507694

34128 24104 602 58834

28747 21685 667 51099

18.72 11.16 -9.75 15.14

170994 114482 2736 288212

4100 78286 90644 168930 21607 90058 111665

2962 74204 86809 161013 23923 96650 120573

38.42 5.50 4.42 4.92 -9.68 -6.82 -7.39

17214 362418 430908 793326 107568 474199 581767

39775 1838 41613 64032 27744 47339 160442 157 299714 1153 23606 2578 27337 1256800

46087 1600 47687 55327 27203 39952 135168 172 257822 1303 18093 1999 21395 1168248

-13.70 14.88 -12.74 15.73 1.99 18.49 18.70 -8.72 16.25 -11.51 30.47 28.96 27.77 7.58

247274 11634 258908 295229 135397 214817 738381 836 1384660 10454 114031 9782 134267 6097253

-79.25

196

92 38 47 90 175

8.70 -86.84 59.57 -21.11 -13.71

624 401 403 345 1149

10815 3 15037 3982 1 19023 13609

12.12 566.67 26.67 29.16 -100.00 27.27 18.96

55173 106 87119 21783 10 109018 80901

13609 28 5601 14 5643

18.96 -35.71 37.96 -92.86 37.27

80901 135 39517 72 39724

562 0 4 188 2100 3396 8 66 997 6759

69.57 50.00 -17.02 -19.86 29.92 100.00 10.61 -7.12 7.59

5525 20 26 1043 10138 24426 63 380 5528 41624

396 103 39 538 1 15243 13845 29088 1511 18191 19702 2997 149 186 353 14189 14877 1 28 1059 1088 125026

-31.57 22.33 -56.41 -23.05 1300.00 5.42 20.42 12.56 -24.29 28.85 24.77 14.71 -34.23 -18.28 -15.01 29.01 26.74 -100.00 89.29 73.09 73.35 20.53

1688 491 212 2391 154 77789 75719 153508 6302 111113 117415 17994 655 689 1459 83125 85928

64 24 19 43 69 52

183 26 6 32 36 7

-65.03 -7.69 216.67 34.38 91.67 642.86

373 161 74 235 402 196

0.00

LCV-Light Commercial Vehicles up to 3.5t ** BMW BMW 11 Mini Total China Great Wall 100 Chrysler Chrysler 5 Dodge 75 JEEP 71 Total 151 DAF DAF Daimler Mercedes 12126 Fiat Alfa Romeo 20 Fiat 19048 Iveco 5143 Lancia 0 Total 24211 Ford Ford 16189 Other Total 16189 GM Chevrolet 18 Opel 7727 Other 1 Total 7746 Jaguar Land Rover Jaguar Land Rover 953 Japan Daihatsu 0 Honda 6 Mazda 156 Mitsubishi 1683 Nissan 4412 Subaru 16 Suzuki 73 Other 926 Total 7272 Korea Daewoo Hyundai 271 KIA 126 Other 17 Total 414 Porsche Porsche 14 PSA Citroen 16069 Peugeot 16672 Total 32741 Renault Dacia 1144 Renault 23439 Total 24583 Toyota Toyota 3438 Volkswagen AG Audi 98 Seat 152 Skoda 300 Volkswagen 18305 Total 18855 Other SAAB Volvo 53 Other 1833 Total 1886 Total 150690 LBC- Light Buses & Coaches upto 3.5 tn Daimler Mercedes Fiat Fiat Iveco Total Ford Ford GM Opel Chevrolet Total Japan Nissan Toyota Total

2010 MAY 80078 122 95470 2491 5575 8066 1721 14992 15109 6966 30662 3517 14989 150 88106

282 6241 6523 717847

16-30 September 2011

GROUP Korea

PSA

Renault Volkswagen AG

Other

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

2011 MAY

2010 MAY

% CHANGE

YEAR TILL DATE 2011

100.00 -33.33 0.00 -83.33

12 8 20 98

GROUP Ford GM Japan

2 2 4 14

1 3 4 84

MAN

112

107

4.67

487

7 367

120 575

-94.17 -36.17

577 2401

-79.25

196

92 38 47 90 175

8.70 -86.84 59.57 -21.11 -13.71

624 401 403 345 1149

10998 3 15063 3988 1 19055 13645

10.84 566.67 26.61 29.44 -100.00 27.28 19.15

55546 106 87280 21857 10 109253 81303

13645 28 5608 14 5650

19.15 -35.71 38.71 -92.86 38.02

81303 135 39713 72 39920

562 0 4 188 2100 3397 8 66 997 6760

69.57 50.00 -17.02 -19.86 29.91 100.00 10.61 -7.12 7.59

5525 20 26 1043 10138 24431 63 381 5528 41630

Total Light Commercial Vehicles up to 3.5t (LCV+LBC) BMW BMW 11 Mini Total China Great Wall 100 Chrysler Chrysler 5 Dodge 75 JEEP 71 Total 151 DAF DAF Daimler Mercedes 12190 Fiat Alfa Romeo 20 Fiat 19072 Iveco 5162 Lancia 0 Total 24254 Ford Ford 16258 Other Total 16258 GM Chevrolet 18 Opel 7779 Other 1 Total 7798 Jaguar Land Rover Jaguar Land Rover 953 Japan Daihatsu 0 Honda 6 Mazda 156 Mitsubishi 1683 Nissan 4413 Subaru 16 Suzuki 73 Other 926 Total 7273 Korea Daewoo Hyundai 271 KIA 126 Other 17 Total 414 Porsche Porsche 14 PSA Citroen 16071 Peugeot 16674 Total 32745 Renault Dacia 1144 Renault 23453 Total 24597 Toyota Toyota 3439 Volkswagen AG Audi 98 Seat 152 Skoda 303 Volkswagen 18414 Total 18967 Other SAAB Volvo 53 Other 1840 Total 1893 Total 151057 CV-Commercial Vehicles (trucks) over 3.5t ** China Other Chrysler Other 1 DAF DAF 3081 Daimler Mercedes 4932 Fiat Fiat 378 Iveco 2654 Total 3032 Ford Ford 44 GM Chevrolet 2 Opel 12 Other 0 Total 14 Japan Mitsubishi 201 Nissan 61 Other 146 Total 408 Korea Daewoo MAN MAN 3875 PSA Citroen 4 Peugeot 33 Total 37 Renault Renault 2497 Other 3 Total 2500 Scania Scania 2608 Toyota Toyota 25 Volkswagen AG Volkswagen 131 Volvo Trucks Volvo 3281 Other 1733 Total 25702 BC-Buses & Coaches over 3.5t DDAF DAF Daimler Mercedes Others Total Fiat Fiat Iveco Total

Auto Monitor

EUROPEAN SALES

45 453 165 618 47 711 758

396 103 39 538 1 15244 13848 29092 1511 18275 19786 2998 149 186 353 14296 14984 1 28 1179 1208 125601

-31.57 22.33 -56.41 -23.05 5.43 20.41 12.56 -24.29 28.33 24.32 14.71 -34.23 -18.28 -14.16 28.81 26.58 -100.00 89.29 56.06 56.71 20.27

1690 491 212 2393 154 77801 75727 153528 6302 111211 117513 17999 655 690 1470 83600 86415 282 6818 7100 720248

2 2482 4404 359 2637 2996 34 1 1 0 2 238 60 189 487

-50.00 24.13 11.99 5.29 0.64 1.20 29.41 100.00 1100.00

2974 8 30 38 1721 0 1721 1898 15 147 2092 739 20031

30.30 -50.00 10.00 -2.63 45.09 45.26 37.41 66.67 -10.88 56.84 134.51 28.31

19767 30 149 179 12326 25 12351 13597 109 632 16434 4014 126726

15 734 136 870 27 370 397

200.00 -38.28 21.32 -28.97 74.07 92.16 90.93

189 2688 930 3618 224 2816 3040

600.00 -15.55 1.67 -22.75 -16.22

6 15819 26045 1796 13385 15181 241 4 51 3 58 1137 343 812 2292

PSA

Renault Scania Volkswagen Volvo Trucks Others Total

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

2011 MAY 151 0

3 3 214 30 244 1 14 15 17 151 29 181 513 2725

Total Commercial Vehicles (Trucks) & (Buses) over 3.5t China Other Chrysler Other 1 DAF DAF 3126 Daimler Mercedes 5385 Others 165 Total 5550 Fiat Fiat 425 Iveco 3365 Total 3790 Ford Ford 195 GM Chevrolet 2 Opel 12 Others 0 Total 14 Japan Mitsubishi 201 Nissan 61 Others 149 Total 411 Korea Daewoo Hyundai Total MAN MAN 4089 Others 30 Total 4119 PSA Citroen 5 Peugeot 47 Total 52 Renault Renault 2514 Others 3 Total 2517 Scania Scania 2759 Toyota Toyota 25 Volkswagen AG Volkswagen 160 Volvo Trucks Volvo 3462 Others 2246 Total 28427

% CHANGE -44.28

0 156 37 193 5 4 9 52 217 29 176 451 2680

37.18 -18.92 26.42 -80.00 250.00 66.67 -67.31 -30.41 0.00 2.84 13.75 1.68

2 2497 5138 136 5274 386 3007 3393 305 1 1 0 2 238 60 189 487

-50.00 25.19 4.81 21.32 5.23 10.10 11.91 11.70 -36.07 100.00

600.00 -15.55 1.67 -21.16 -15.61

YEAR TILL DATE 2011 843 2

10 10 986 165 1151 9 60 69 92 600 112 991 2543 13260

6 16008 28732 931 29663 2020 16201 18221 1084 5 52 3 60 1137 343 822 2302

3130 37 3167 13 34 47 1773 0 1773 2115 15 176 2268 1190 22711

30.64 -18.92 30.06 -61.54 38.24 10.64 41.79 41.96 30.45 66.67 -9.09 52.65 88.74 25.17

20753 165 20918 39 209 248 12418 25 12443 14197 109 744 17425 6557 139986

2153 2409 1194

26.06 34.91 4.27

13892 16869 6231

21 2243 1268 0 1268 1887 1957 310 13442

-38.10 31.21 57.97 58.20 38.16 60.86 -35.81 34.84

74 14746 9956 21 9977 13591 15681 1052 92114

41 237 165 402 583 207 30 237

10 466 136 602 234 136 37 173

310.00 -49.14 21.32 -33.22 149.15 52.21 -18.92 36.99

164 1483 930 2413 2123 900 165 1065

151 181 363 1958

217 176 314 1726

-30.41 2.84 15.61 13.44

600 991 1640 8996

27.37 21.29 21.32 21.29 28.01

14056 18351 931 19282 8354

-38.10 -38.10 32.41 -18.92 31.62 57.97

74 74 15646 165 15811 9956 21 9977 14191 16672 2692 101110

HCV-Heavy Commercial Vehicles (trucks) over 16t ** China Other DAF DAF 2714 Daimler Mercedes 3250 Fiat Iveco 1245 Ford Ford GM Chevrolet Japan Other 13 MAN MAN 2943 Renault Renault 2003 Other 3 Total 2006 Scania Scania 2607 Volvo Trucks Volvo 3148 Others 199 Total 18125 HBC-Heavy Buses & Coaches over 16t DAF DAF Daimler Mercedes Other Total Fiat Iveco MAN MAN Others Total Renault Renault Scania Scania Volvo Trucks Volvo Others Total

2010 MAY 271 0

Total Heavy Commercial Vehicles (Trucks & Buses) over 16t CChina Other DAF DAF 2755 2163 Daimler Mercedes 3487 2875 Other 165 136 Total 3652 3011 Fiat Iveco 1828 1428 GM Chevrolet Japan Others 13 21 Total 13 21 MAN MAN 3150 2379 Others 30 37 Total 3180 2416 Renault Renault 2003 1268 Other 3 0 Total 2006 1268 Scania Scania 2758 2104 Volvo Trucks Volvo 3329 2133 Others 562 624 Total 20083 15168

58.20 31.08 56.07 -9.94 32.40

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

Auto Monitor

PRODUCT INDEX

16 - 30 September 2011

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

11th Auto Expo’2012...................................................56

Diamond tools............................................................bic

Physical testing & measuring equipments .................38

Abb motors eff 1 ........................................................17

Die casting dies ..........................................................45

Pistons & pistons rings ...............................................53

Acc. Padel sensor assy. ...............................................47

Die casting engineering services ................................45

Plastic moulded components ....................................51

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

Door and trim systems ...............................................21

Pneumatics & hydraulics-cylinders............................35

Air chiller ....................................................................65

Drilling tools...............................................................bic

Polymer conveyer belt ...............................................65

Ambulance .................................................................69

E-coatings solutions ...................................................ﬁc

Powder coating system ..............................................20

Analytical instruments ...............................................38

Ecu interface modules ...............................................29

Powder feeding ..........................................................44

Auto coding ................................................................29

Egr valve .....................................................................47

Power chucking cylinders ..........................................bc

Auto electrical test benches .......................................32

Electronic control unit ...............................................47

Press tools ..................................................................45

Automatic chargers ....................................................32

Encoders.....................................................................59

Press tools engineering services.................................45

Automatic painting system ........................................20

Entrepreneur magazine .............................................60

Pressure regulators ....................................................35

Automatic spray guns .................................................44

Environmental monitoring systems ...........................38

Proﬁle projectors .......................................................28

Automotive battery chargers & testers ......................32

Exhibition - Engineering Expo ....................................52 , 64

Proximity sensors .......................................................59

Automotive electrical components ............................51

Extension springs .......................................................5,36

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

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

Fast chargers ..............................................................32

Rapid prototyping tools for automotive software......29

Axles & brakes for heavy commercial vehicle ............15

Fasteners ....................................................................28

Reamers .....................................................................bic

Bbl brake moters........................................................17

Fiber glass automobile ...............................................30

Robot system..............................................................65

Bbl/kec ﬂame proof motors .......................................17

Financial services .......................................................9

Safety lig.....................................................................59

Bearings .....................................................................57

Five axis machining centers .......................................26

Salt spray chamber.....................................................24

Bus a/c ........................................................................55

Flange mounting b5/b35 motors................................17

Sealer dispensing system ...........................................20

Buses ..........................................................................39

Flooring and acoustic systems ...................................21

Seat assemblies ..........................................................51

Car assembly lines ......................................................46

Four axis horizontal machining centers .....................26

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

Car paints ...................................................................8

Granulator ..................................................................65

Siemens motors eﬁ 1 ..................................................17

Car polish ...................................................................8

Grinder .......................................................................65

Silicon carbide based particulate ﬁlters.....................67

Caravans .....................................................................69

Grippers......................................................................35

Solenoid valves ..........................................................35

Ced/ktl coatings .........................................................ﬁc

Gun drills ....................................................................bic

Solid carbide drills .....................................................61

Chassis carrier ............................................................62

Hardware in loop (hil) system ....................................29

Solid carbide drills with ic ..........................................61

Clamps........................................................................31

Headliner and overhead systems ...............................21

Solid carbide mills......................................................61

CNC .............................................................................63

Hmc/vmc machines....................................................75

Solid carbide reamers ................................................61

CNC gear cutting machines ........................................37

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

Solid carbide reamers with ic.....................................61

CNC hmcs ...................................................................63

Hopper dryer..............................................................65

Solid carbide special drills .........................................61

CNC lathes ..................................................................3, bc

Hopper loader ............................................................65

Solid carbide special mills..........................................61

CNC machines ............................................................63

Horizontal CNC machines...........................................63

Solid carbide special reamers ....................................61

CNC oval turning centers ............................................63

Horizontal machining center .....................................63

Solid carbide tools......................................................22

CNC turn mill centers .................................................63

Hot,cold & warm forged machined parts ..................51

Soses & tubes .............................................................55

CNC turning center .....................................................3, 63

Hvacs & evaporators ..................................................55

Special purpose machine ...........................................37, 45

CNC vertical machining center ...................................63

IC engine valves..........................................................51

Spray guns ..................................................................20

CNC vertical turning machines ...................................37

Induction heating equipment ....................................16

Spray painting equipment .........................................8

CNC/vmc machines.....................................................23

Industrial control & sensing devices ..........................59

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

Commercial vehicle loan ............................................9

Industrial scientiﬁc instruments ................................38

Super finishing film - variofilm...................................10

Commercial vehicles ..................................................7,9, 27, 39

Instrument panels ......................................................21

Switching relays..........................................................59

Compact chiller ..........................................................65

Kec ac motors .............................................................17

Taps ............................................................................bic

Compact measurement modules ...............................29

Kec dc motors ............................................................17

Temperature controllers ............................................59

Compression springs ..................................................5, 36

Kec slipring crane duty motors ..................................17

Testing & safety technology .......................................34

Compressors ...............................................................55

Level controllers .........................................................59

Thermo compression moulds ....................................45

Condensers .................................................................55

Logistics services ........................................................6

Thermoplastic polyurethanes ....................................33

Consoles and cockpits ................................................21

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

Timers ........................................................................59

Conveyors ...................................................................46

Magnum spray guns ...................................................44

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

Cooling module ..........................................................55

Manual powder coading system.................................44

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

Counters & power supplies ........................................59

Measuring & monitoring relay for 1ph/3ph ...............59

Torsion springs ...........................................................5,36

Countersinks ..............................................................bic

Metal cutting tools .....................................................61

Trailers .......................................................................69

Cranes ........................................................................48

Metﬁn compounds .....................................................18

Trailers & truck bodies ...............................................62

Cutting tools ...............................................................22

Micro measurement modules ....................................29

Tungsten carbide metal cutting tools ........................fgf

Cylindrical grinders ....................................................bc

Milling cutters ............................................................bic

Turn key tcf lines ........................................................46

Dehumidiﬁed air dryer ..............................................65

Model based design ...................................................29

Turning machine solutions.........................................40

Modular tooling system .............................................bic

Turrets ........................................................................bc

Motor cycle battery chargers & testers ......................32

Vacuum pump ............................................................47

Mould temperature controller ...................................65

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

Movement technology ...............................................44

Vertical & horizontal machining centers ...................37

Multi-battery chargers ...............................................32

Vertical line series ......................................................63

Other interior and exterior components....................21

Vertical machining centers.........................................43, bc

Paint circulating system .............................................20

Vision sensors.............................................................59

Paint pumps ...............................................................20

Vmc-linear series ........................................................63

Pbegl geared motors ..................................................17

Water/milk tankers in s.s. ...........................................69

Photo electric sensors ................................................59

Wire forms ..................................................................5, 36

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16 - 30 September 2011

GLOBAL WATCH

Volvo developing a plug-in hybrid bus

olvo Buses is currently developing a plug-in hybrid bus that can drive long distances silently and exhaustfree powered by electricity only. Three buses will be tested in Gothenburg, Sweden, supported by the European Union. Volvo currently has the world’s most efficient hybrid solution for buses and trucks. Volvo Buses has sold more than 250 hybrid buses, which are reducing fuel consumption by up to 35 percent and thus also reducing energy consumption and carbon-dioxide emissions by an equal amount. “Reducing the total global energy consumption is the most important measure today and in the future,” says Volvo Buses CEO, Håkan Karlsson. “The bus is already today clearly the most energy-efficient vehicle for public transport and our hybrid bus will accentuate its position as the best environmental option.” “However, we must continue to reduce energy consumption and for us in the bus industry, this involves finding solutions to increase electricity use.” Supported by authorities including the Swedish Energy Agency, Volvo is developing a plug-in hybrid bus. It is essentially the same Volvo hybrid bus as today—where the brake energy is recycled and utilised by the electric motor. However, with a new type of battery and charging equipment, it will also be possible to charge the battery via the electricity network. The concept is based on placing battery charging stations at the end stations of the bus lines. By charging the battery there for five to ten minutes, it could significantly extend the time that the bus is able to operate only on electricity. This could entail distances of up to ten kilometers, with the corresponding advantages in the form of silent traffic with no local emissions. It can be controlled so that the bus operates on electricity in densely populated areas or in particularly sensitive environmental areas, while the diesel engine can be used on other parts of the route. This technology will generate considerable opportunities to significantly reduce energy consumption. The reason is that electric engines have very high efficiency. We expect to be able to reduce the energy consumption in a city bus by up to 65 percent compared with today’s diesel buses,” says Håkan Karlsson. “And, the plug-in hybrid bus will be able to reduce diesel consumption and thus carbon-dioxide emissions by more than 75 percent.” Volvo Buses expects to have a prototype bus ready for testing in 2011. The next step will be taken in autumn 2012, when a field test will commence in Gothenburg using three chargeable hybrid buses. The buses will be put in service with passengers on Line 60. The field test project will be implemented in cooperation with Business Region Göteborg, the Traffic Office in Gothenburg City, Västtrafi k and Göteborgs Energi, which will be responsible for the charging stations. Recently, the project was granted a subsidy of Euro 1.4 million from the EU’s programme that supports environmental ventures, Life+.

The Volvo hybrid bus

“It is important to the environment that we are able to develop new energy-efﬁcient solutions as rapidly as possible,” said Head of Public Affairs at Volvo Buses, Ulf Gustafsson. “We have the opportunity to succeed because we are capitalizing on the collective expertise of companies, organizations and authorities, and they are jointly investing the funds required.”

The ﬁeld test will commence in autumn 2012, but Volvo Buses does not know yet when the company will be able to offer this bus in the market. “It will take a few more years,” stated Håkan Karlsson. “But, we are convinced that this is a key step on the path to more efﬁcient public transport and an important step in the effort to reduce global energy consumption.”

Mercedes to add compact model

ercedes-Benz will build a ﬁ fth variant off its future A- and B-class compact-car platform. The model will be a so-called ‘shooting brake’, company sources said, adding that the low-slung sporty station wagon will start arriving at European dealerships in 2014. The second-generation A- and B-class models will be underpinned by a new platform called MFA (Mercedes Front-wheel-drive Architecture). Mercedes’ current two-car compact line-up will more than double in the future to also include the successors to the current B-class—due before the end of this year—and the replacement for the A-class, which will arrive next year. In addition, Mercedes, in 2013, will launch an A-class coupe, which will be called CLC and compete against the BMW 1-series coupe.

Auto Monitor

Toyota’s French unit to restart three-shift ops

oyota Motor Europe says its French unit Toyota Motor Manufacturing France (TMMF) will restart its three-shift operations in January next year, to meet the expected demand for the new Yaris subcompact. TMMF began producing the Yaris, Toyota’s best-selling model in Europe, in 2001. Since then, the factory has built almost two million cars. Production is being raised to meet the expected demand for the all-new third generation Yaris, which began production in July this year. Toyota aims to achieve annual sales of 200,000 Yaris vehicles in Europe. A Yaris hybrid is also planned for launch in 2012. Initially, the third shifts will run for 18 months and will create 800 temporary jobs, Toyota stated.

Auto Monitor

THE OTHER SIDE

Getting Personal with Maninder Singh Seehra, CEO, GNA Udhyog If not in the auto industry, where would you be? An Architect, so I could design grand structures What car do you drive? What do you dream of driving? I presently drive a Mercedes M -350 and dream of driving a Bentley Coupe Your most recent indulgence… Investing my time in building my home What are you currently reading? ‘The Outliers’ by Malcolm Gladwell What is Mr Seehra doing when not talking auto? About Environment conservation and sustainable lifestyle Outdoor activity you would miss ofﬁce for… Restoring classic cars and off-roading Where did you go for your last holiday? London You get angry when… In-appropriation of facts What is the one thing you would like to change about you? I am blessed with the life I am leading and completely satisﬁed in my present state

Illustration: Sachin Pandit

Best thing to have happened to you… My elder daughter graduating and completing her masters

In Person Maninder Singh Seehra is a third generation neration entrepreneur siness as a teenager. and has been involved in his family business He also has to his credit, established the propeller shaft plant for the group back in the 1980s,, and has led it to grow in to one of the key players in the automotive indusause of Research & try. Moreover, he has pioneered the cause ng the few indigeDevelopment in 2008 and now is among d validate the said nous companies to design, develop and try. product lines in the automotive industry. Beyond business, Maninder Seehra is a family man and spends his time with his family. undala He still stays in his ancestral village, Bundala ,000) (which has a population of 5,000-6,000) near Jalandhar in Punjab. He spends his er time pioneering the cause of better e health care for the rural people and he nis actively involved in running a nonproﬁt hospital for villagers.

An experience I won’t forget… A visit to the Rolls Royce manufacturing plant; it was a dream come true experience to witness the manufacturing process. I was exhilarated to watch how manufacturing as an art is still preserved, practiced and perfected at the plant.

16 - 30 September 2011

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