Auto Monitor - 1 October 2012

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. 12 No. 32

w w w.am o n l i n e.i n

1 October 2012

FOCUS

32 Pages

` 50

INTERVIEW

TESTING

Pg 16

‘We are preparing for higher adoption of EVs in coming years’ Peter Müller, MD, Adaptronic

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Pg 8

Fiem steps on pedal to repeal gloom Nabeel A Khan New Delhi

P

a n ipat-ba sed Fiem Industries has stepped up its strategy to realise its objective of achieving a Compounded Annual Growth Rate (CAGR) of around 25 percent over the next five years. It has entered into two major diversifications projects for which it has signed technical collaborations and MoU. A source also revealed to Auto Monitor that the manufacturer has recently bagged an order from Harley Davidson to supply headlight and tail light. It is also looking to supply interior lights for some of the models in Toyota’s stable and is in talk with Maruti to supply some lighting products.

It is also looking to deepen its relationship with Mahindra Reva cars by commencing supplying lights, in addition to chassis system.

It signed a MoU with the Chinese company Hubei TriRing Auto Electrical Appliance Company Ltd to get the technical know-how for manufacturing automotive switches. The two companies will sign the final agreement in the coming months and start importing products from China and sell it to the India OEMs. It may consider local manufacturing of the products, if volumes can be sustained at sufficiently high level. Tri-Ring is one of the leading suppliers in China and its customers in China include Suzuki Motors. It also supplies to Tata Motors in India.

Fiem has also developed LED head lamp for two-wheeler and fog light for four wheelers. “We are probably the first component maker in India to produce LED head lamp for two-wheeler and fog light for four-wheeler. Samples have already been developed and the company is scouting for the customers,” Head (Commercial &

Fiem has bagged an order from Harley Davidson to supply headlight and tail light. It will also supply interior lights for some of the models in Toyota’s stable International Operations), Fiem Industries, S Narayanan told Auto Monitor recently.

Pointing towards the current slide in the automotive industry, the company has signed a technical collaboration with BrightLite Systems Pte Ltd of Singapore. Under this arrangement, the company will produce LED lighting for home and commercial applications. “We see there is growth coming up in the infrastructure and real estate

and it would be an apt diversification for us so we could utilise the existing set up for the same,” Narayanan added BrightLite Systems Pte Ltd, Singapore is engaged in research of advanced solutions in LED Lighting with the support of Singapore G over n ment a nd holds global patent in advanced LED technolog y. Under t his arrangement, the company will S Narayanan, Head (Commercial & International manufacture hand Operations), Fiem Industries removable LED modand outdoor LED products of the ules of various wattages to be company. used for indoor and outdoor applications in India. BrightLite The company touched a turnover of `581 crore in FY11-12 will also provide full techniexpects to grow at 25 percent for cal support, including testing and product validation for LED the next three years. Its profit after tax (PAT) was `22 crore which is home lighting, LED solar street 4.2 percent of the total revenue. lighting and all other Indoor

BharatBenz debuts two medium duty haulers, tipper Our Bureau Mumbai

D

a im ler Ind ia Commercial Vehicles Pvt Ltd forayed into the commercial vehicle segment in India with the

DATA MONITOR Top 5 3W makers Company

Aug-11

Aug-12

Change

BAL

17,955

18,251

1.65%

Piaggio

16,419

16,268

-0.92%

M&M

6,394

6,004

-6.10%

Atul Auto

2,052

2,322

13.16%

1,209

1,200

-0.74%

TVS

Top 5 3W-Exporters Company

Aug-11

Aug-12

Change

BAL

26,730

22,303

-16.56%

TVS

3,505

2,707

-22.77%

Piaggio

1,658

1,144

-31.00%

M&M

352

416

18.18%

Force Motors

84

140

66.67%

* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL

Marc Llistosella,Managing Director and Chief Executive Officer and Erich Nesselhauf, VP, Procurement & SCM, Daimler India Commercial Vehicles

launch of its medium duty trucks under the ‘BharatBenz’ brand.

The Indian subsidiary of German truck major launched three medium duty trucks: 2523 rigid truck in the price range of `15.7 lakh to `17.2 lakh, 3123 rigid truck in `18.7

lakh to `20.2 lakh range and 25 tonne tipper in `22.4 to `23.1 lakh range. The company is offering wide range of optional and standard specifications to customers.

“We are looking to offer maximum benefits to truck operators

with higher fuel efficiency and durability compared to existing products in the market,” said Managing Director and Chief Executive Officer, Daimler India Commercial Vehicles, Marc Llistosella. He added the company has sought to address the key concerns of truck operators in India by tapping its global resources and decades of experience in truck development and production.

The company would be launching additional 14 products in the coming months in order to offer products in all the major application and tonnage categories. The trucks have been equipped with intelligent unitised fuel injection system, balance type rear suspension and inter wheel differential in the goods carriers. The tipper is equipped with inter wheel/inter axle differential locks and engine brake system.

The company has also indentified 28 dealer partners from around 800 applicants for dealerships across major markets in India. The dealers were identi-

Truck model

Price in `

2523 rigid truck

`15.7 lakh `17.2 lakh

3123 rigid truck

`18.7 lakh `20.2 lakh

2523 tipper

`22.4 lakh `23.1 lakh

fied after taking into account location of proposed dealership, meeting with the existing customers, employee orientation and other background and professional credential checkups.

The dealers have been identified keeping in mind the demanding customer base and have been set up at strategic locations to allow these dealers to reach out to the vehicles within two hours in case of any breakdowns across the country.

The company has tied up with leading banks and financial institutions to offer a single window dealing for various financing needs of the customer through ‘BharatBenz Financial’.

EDITORIAL Bad precedent?

T

he recent wage settlement agreement at Maruti Suzuki has implication not only for other OEMs but across the manufacturing sector. Such an agreement, short of providing ammunitions to other unions in the Gurgaon-Manesar belt, points towards growing clout of the workers at the automotive manufacturing units and could be precursor for many similar wage agreements across manufacturing facilities in various industrial clusters in the country.

Maruti approved a three year wage settlement at its Gurgaon facility giving workers a pay hike of more than 60 percent and a host of other beneďŹ ts including interest-free personal loans, better medical cover for parents, a scheme for housing and exible dearness allowance. This could lead to salaries of permanent workers at Gurgaon facility to touch the vicinity of `34,000, an unheard of amount in any automobile manufacturing facility. The company has also made a similar offer to the 620 odd permanent workers at its Manesar facility that was witness to violence by workers last July. The previous wage settlement was ďŹ nalised in 2009 with ‘modest’ salary hike of `9,500-9,700 per month.

Though the company ofďŹ cials have maintained that impact of such an agreement may constitute just 2.5-2.6 percent of total revenues, this may be a narrow view. Rival OEMs

are already beginning to dread similar issue cropping up and leeway that would need to be given to workers in order to maintain ‘harmony’. The moot question that may need to be addressed is what impact would such agreement/s have on future projects and manpower planning thereon not only for Maruti but also other automobile manufacturers. Would OEMs (or even auto component manufacturers) allow exibility in their manufacturing costs over and above dearness allowance that caters to ination related cost of living? Looking at this instance the more pertinent question could well be whether OEMs would have a choice.

Comments can be sent to am.editorial@network18publishing.com

QUOTES Marc Llistosella, managing director and chief executive officer, Daimler India Commercial Vehicles

We’re getting impatient but there’s no easy win here

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CONTENTS TESTING CFD helps to make engines more efficient

16

Institute for Powertrains and Automotive Technology at the Vienna University of Technology has developed prediction methodology for combustion stability based on simulations with STAR-CD

16 12

GLOBAL WATCH Four premieres for Kia at Paris show

21

The all-new Kia Carens compact MPV and the new second-generation Kia pro cee’d make their world premieres at the Mondial de l’Automobile 2012 in Paris

CORPORATE Suppliers need to sow the R&D crop

12

Suppliers need to step up expenditure to five-ten percent of revenues on R&D by leading global suppliers which remains at just one percent for Indian suppliers

12

Ford reveals new Fiesta, Ecosport at Paris Motor Show

22

The new Ford Fiesta will target fuel economy with six powertrains for the UK offering both sub-100 g/km CO2 emissions and returning from 65.7mpg

Komax looking for larger presence in India

14

Komax is strongly mulling over option to start manufacturing or assembly unit for some of the machines in India by 2014

New transportation policies to bring order to the CV segment: F&S

14

F&S study finds that the country is fast catching up with the global emission regulation trends including implementation of Euro V and Automatic transmission standards by 2015

Honda to offer Civic Type R, compact SUV, sports motorcycle

15

Four lakh car a vital cog in Nissan Power88 mid term plan Nissan is set to enter the volume segment with a four lakh compact hatchback and also aims for an eight percent global market share by FY2016, as per Nissan’s Power88 business plan

15

24

Honda outlined the product, technology and business developments and direction that are planned to grow Honda’s global customers by 60 per cent from 23.9 million to 39 million

New Toyota Auris to go on sale in December

28

Toyota Auris will go on sale in four grade line-up including 1.33 dual VVT-i and 1.6 valvematic petrol and 1.4 D-4D diesel units plus Auris Hybrid with Hybrid Synergy Drive

Auto Monitor

1 OCTOBER 2012

INTERVIEW

8

‘We are preparing for higher adoption of EVs in coming years’ Adaptronic, the Germany based wire-harness testing equipment maker sees bright future for testing equipments in India. Looking for a JV partner for its operations here, Managing Director, Adaptronic, Peter Müller tells Auto Monitor about growth projections and future in India.

Nabeel A Khan & Jagdev Kalsi What is the field of operation for Adaptronic?

We offer solutions for electrical testing of wiring harnesses.

We have been in India for the past 15 years and make the test systems for the wiring harnesses and cabinets for railway, aerospace, defence and communication industry. If wire harness manufacturers use our equipments properly, they can reduce a lot of faults.

How can that be advantageous?

Calculations in Europe say that each fault detected in a wire harness after shipping costs the manufacturer about Euro 10,000.

So, if you have 10 faults every month, you can save such money and invest into electrical test equipment.

Our test equipments find all the faults you have in production line before you ship to your customer. If you do electrical test manually, it would just check for continuity and would not be a 100 percent test since short circuit testing cannot be done manually. It will also reduce labour cost.

Time taken during this testing will be 10 percent lesser compared to the time taken in case of manual testing. Additionally the machine can also test on many

more parameters compared to manual testing process.

And if you find all the faults before you ship your products to your customer, it gives you chance to repair before shipping. The cost incurred when customer complains and you check your product is saved. And if you have many products rejected, the customer can look for other supplier as well.

How has India grown in all these years?

The technology in India is advancing step by step. When I first came here the main wire harnesses were mainly for two and three wheelers. Now if the consumers buy a car, the expectation in quality level is much higher and also the wire diameters, size of connectors is going down. So it has become more and more complicated to make sure just by manual and visual inspection that the harness correctly inserted. So the required amount of testing in India is increasing rapidly.

How have OEMs and suppliers taken to testing?

Manufacturers that have local production for the Indian market and export facility have already invested in better equipments but most are still reluctant. Majority of manufacturers believe that local tools and technologies are still sufficient to reach the required quality levels. But local

manufacturers have to upgrade their production capabilities and their quality levels to be at least at the same quality levels as OEMs. We’ve seen a lot more interest but not seen much investment. I think the threshold to really put money on table and buy equipment hasn’t reached yet. But we can see it coming soon.

What are the major concerns for wire harness manufacturers globally?

There are a few things that concern all the wire harness manufacturers around the world.

The main thing is the pressure from final customers, the OEMs to reduce the costs. At the same time even in countries like India and China, the labour costs and the material costs due to the cost of copper for example, and the logistic costs rise a lot. So wire harness manufacturers are really in a very tight position, because their customers are very strong.

OEMs are big customers and they really threaten if you don’t reach their price.

What lies in future for you?

A new challenge has come up, for the use in electric and hybrid vehicles. Currently, all the electric installation in cars are low voltage installations. The typical operating voltage is around 12V but for electrical and hybrid vehicles of future, we are likely to see

up to 400V for battery in the car and you’ll have additional power wire harness for the engines and electric motors in the car. So all the cabling then between fuel connectors, batteries, inverters and from there to electric motors in the car will be high voltage cables and would need specific test parameters to make sure that while you drive the car, no spark occurs. In case you have a spark with DC voltage, it’ll continue to burn the complete car.

What are your growth projections for future?

There are two parameters that influence our growth in India.

Firstly, the number of vehicles produced in India and secondly the quality consciousness of OEMs and suppliers thanks to the customers becoming more quality conscious. The manufacturers have been investing in increasing production capacity and also their quality levels in terms of production machines, but sooner or later they’ll reach 85 percent

quality level from where it’ll be possible only by electrical testing to reach the next 15 percent quality level.

So, we think we can increase our sales in India by ten folds within next five years. In the past year, our growth was close to five percent per annum but now we expect about 15 percent growth per annum. Roughly, we might have close to five percent share.

Do you have plans to setup base in India?

We are open to operate with local Indian company but we don’t want to move our R&D to India. We have our R&D in Germany and we’d keep it there as it is core knowhow of our company.

We can start manufacturing India only if we have a joint venture partner. We can’t do an investment by ourselves since we are a small company. A joint venture partner would be great and we are contacting some companies already.

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Auto Monitor

1 OCTOBER 2012

AUTOPINION

10

APA and auto industry

T

Dinesh Supekar Partner - Transfer Pricing, Price Waterhouse & Co

he Transfer Pricing (‘TP’) provisions were introduced in India in the Finance Act of 2001 with a view to avoid the erosion of Indian tax base. The provisions required Indian companies to demonstrate arm’s length behavior while transacting with group companies overseas. The TP provisions have been a subject of controversy since their inception. In the ďŹ rst seven rounds of TP audits, the Indian Revenue Authorities (‘IRA’) have made an adjustment of INR 917 billion .

The Indian Automotive (‘Auto’) industry has been no exception to this. Most of the auto companies in India, being multinationals (‘MNCs’), have been subject to detailed TP scrutiny by the IRA, resulting in litigation and uncertainty.

Key TP issues faced by the Auto Industry Imports of parts, components and CKDs, exports and royalty payments would typically constitute the key related party transactions in this industry. Given the data limitations, the taxpayers have been resorting to Transactional Net Margin Method (‘TNMM’) for purpose of demonstrating the arm’s length nature of their international transactions. In essence this means that the operating margin of the taxpayer is compared with the operating margins earned by functionally similar companies. Since, generally data of newly set-up companies is not available in the public domain, the taxpayers end up comparing themselves with established companies after making certain economic and commercial adjustments. Such adjustments are primarily towards differences in utilization of capacities, differences in localization levels, etc.

However, the IRA have not been allowing such adjustments to the taxpayers. This results in direct comparison of profitability of an entrepreneur with proďŹ tability of a licensed manufacturer or assembler, resulting in transfer pricing adjustments and consequent litigation.

For instance, let’s suppose the net margin of an automobile manufacturer is 3 percent on sales, with other auto manufacturers (as may be identiďŹ ed as comparables) are making a net margin of 5 percent. In such a case, the said manufacturer would typically argue that its proďŹ ts and those of the other automobile manufacturers (after adjusting the differences on account of capacities, localization, etc) are similar, and hence its related party transactions have been correctly priced. In the TP audits however, the IRA has usually challenged such analysis – not the basic methodology per say – but matters such as comparables, the comparability adjustments, etc.

In fact, instead of an indirect methodology as above, a theoretically correct method of the testing the arm’s length of such transactions is to demonstrate at a transactional level that the prices have been set correctly, and demonstrate the same by way of back up documentation.

However, since this approach requires extensive documentation from the parent company to support the basis of pricing and more importantly, given the unpredictable nature of the IRA in their approaches towards what would be acceptable as the back up documentation, such information is typically not maintained / made available to the Indian entity by the overseas parent. The end result is again, uncertainty and litigation. This is where the newly introduced APA scheme can potentially provide a big relief.

What is APA? An APA is an agreement between the taxpayer and the Revenue Authority on the pricing of future intercompany transactions. The taxpayer and Revenue Authorities (represented by Competent Authority of India and his team) mutually agree the transfer pricing methodology and/or pricing for a set of international transactions for an agreed future period of time. The agreement is subject to certain critical assumptions and condi-

Key TP issues in Auto industry

s #ERTAINTY WITH RESPECT TO DATA information that the taxpayer and the overseas group companies need to maintain and submit during the veriďŹ cation process s 2EDUCTION IN RISK COST ASSOCIated with audits and appeals over the tenure of the APA s &LEXIBILITY IN DEVELOPING PRACtical approaches for complex transfer pricing issues s ,OW ANNUAL REPORTING COST s !0! RENEWAL PROVIDES AN excellent leverage of time and efforts expended during negotiating the original APA Considering the number of issues faced by the Indian Auto industry, an APA would be a good platform for auto companies to avoid similar disputes for future years subject to of course, proper preparation. In the enclosed table we have summarized the key issues the Auto industry is facing and how APA can help in avoiding transfer pricing disputes in India.

Concluding remarks The APA process can potentially resolve transfer pricing issues early (through negotiations) in a more efďŹ cient, consistent, and comprehensive manner than the standard audits, appeals, litigation processes, which are more of an adjudication processes and thus can provide a much needed certainty to the industry. The decision for going ahead with an APA should be taken at an appropriate time so that there is sufďŹ cient time to prepare for the pre-ďŹ lling consultation. In case a taxpayer was to apply for APA for year ending March 31, 2014, the application with the relevant authorities will have to be ďŹ led before March 31, 2013. The pre ďŹ ling meeting would have to be completed well before close of calendar year 2012.

In summary, the newly introduce APA mechanism can prove to be a blessing for the industry and certainly merits a close examination.

(Inputs from Tejas Dharwadkar Manager, Price Waterhouse & Co. Views expressed in this article are those of the authors)

Key points that could be agreed in an APA

#OMPARABILITY

s s

s

s

s

3TART UP LOSSES

s s s s

)DENTIlCATION OF LEAST COMPLEX ENTITY AND SELECTION OF TESTED PARTY 2EASON FOR LOSSES AND DOCUMENTATION REQUIRED TO SUBSTANTIATE THE LOSSES !GREE ON THE DATA TO BE SUBMITTED AS PART OF THE !#2 !GREE ON THE NATURE AND METHODOLOGY OF MAKING ECONOMIC ADJUSTMENTS ON ACCOUNT OF underutilization of capacity and localization levels

2OYALTIES

s

s

!GREE ON COMPARABLE AGREEMENTS ARRANGEMENTS AVAILABLE IF ANY 4HIS WILL HELP

mitigate any related disputes pertaining to comparability 0OSSIBILITY OF USING 0ROlT 3PLIT -ETHOD FOR ARRIVING AT APPROPRIATE ROYALTY RATE 4HIS APPROACH aims at ďŹ rst remunerating the taxpayer for routine functions and thereafter, the supernormal proďŹ t which is attributable to the intellectual property is shared between the participating entities in the relative ratio of their contribution !GREE ON THE DATA TO BE SUBMITTED AS PART OF THE !#2 WITH RESPECT TO BENElTS RECEIVED

by applicant on account of technology/brand royalty

s -ARKETING INTANGIBLES

tions that the contracting entities mutually agree to adhere to. APAs can be applied for existing as well as proposed transactions.

The Indian APA rules provide for constitution of an APA team (Team) which shall consist of income tax authorities and experts from economics, statistics, law and other necessary ďŹ elds. To facilitate the APA process, certain ofďŹ cers would be nominated in Delhi, Mumbai and Bangalore. There are no conditions prescribed under the Indian APA rules for a taxpayer to be eligible for applying APA. The process for APA would start with pre-ďŹ ling consultation meeting. The taxpayer can request for a pre-ďŹ ling consultation meeting which shall be held with the objective of determining the scope of the agreement, understanding the transfer pricing issues involved and examining the suitability of international transactions for an APA. The taxpayer also has an option of applying for a pre-ďŹ ling consultation on an anonymous basis. This process is non-binding on the taxpayer and the Revenue.

After the pre-ďŹ ling meeting, if the taxpayer is desirous of applying for an APA, an application would be required to be made in prescribed form and by paying the prescribed fee. Once the application is accepted, the APA team shall hold meetings with the applicant and undertake necessary inquiries relating to the case. In the ďŹ nalisation phase, the applicant and the APA would exchange comments on the ďŹ ndings of the APA team. If the taxpayer does not agree with the terms and conditions of the APA, the taxpayer has the option of walking out of the APA process. On ďŹ nal acceptance of the terms and condition mentioned by the APA team, the ďŹ nal agreement would be drawn. The Indian APA rules provide for an APA term for up to ďŹ ve years.

The key advantages of APA are summarized below: s #ERTAINTY WITH RESPECT TO outcome of covered transactions during the tenure of the APA resulting in no/minimal transfer pricing disputes

s s s

)DENTIlCATION OF LEAST COMPLEX ENTITY AND SELECTION OF TESTED PARTY !CCEPTANCE OF FOREIGN COMPARABLES 4HE )2! GENERALLY HAVE NOT ACCEPTED FOREIGN COMPARABLES in past. However, in case of bilateral and multilateral APAs as IRA from other countries may also be involved, acceptance of foreign comparables may result in having a broader set of comparable companies) -ETHODOLOGY OF ARRIVING AT AN APPROPRIATE SET OF COMPARABLES 4HIS MAY ALSO INCLUDE

key accept-reject criterias that need to be considered !GREE ON THE DATA TO BE SUBMITTED AS PART OF THE !NNUAL #OMPLIANCE 2EPORT @!#2

This would provide certainty with respect to information that overseas group entities would be required to maintain and share !GREE ON THE NATURE AND METHODOLOGY OF MAKING ECONOMIC ADJUSTMENTS RESULTING IN

better comparability

#LARITY ON WHETHER APPLICANT IS CREATING ANY MARKETING INTANGIBLE BY SPENDING ON marketing and advertisement expenditure 7HAT SHOULD CONSTITUTE PART OF MARKETING AND ADVERTISEMENT EXPENDITURE -ETHODOLOGY OF ARRIVING AT AN APPROPRIATE SET OF COMPARABLES 4HIS MAY ALSO INCLUDE key accept-reject criterias that need to be considered

Auto Monitor

C O R P O R AT E

12

1 OCTOBER 2012

Suppliers need to sow the R&D crop Jagdev Kalsi New Delhi

I

ndia is soon to be the number one manufacturer of small cars, according to a recent Ernst & Young study. In order to support the automotive industry growth, the suppliers also need to step up expenditure to five-ten percent of revenues on R&D by leading global suppliers which remains at just one percent for Indian suppliers, analysis by AT Kearney suggested. The same gap needs to be addressed for the suppliers to keep abreast with the automotive industry growth.

With the changing times, the component manufacturers and SMEs need to evolve and grow simultaneously along with the industry, not just in manufacturing but way beyond. The need of the hour requires them to evolve from being just manufacturers to being innovators, as the past President, ACMA, Arvind Kapur puts it, “Component manufacturers have to partner in design, development and testing to grow.

There’s a need to find specific

solutions and promote R&D for the component industry to end up winning.” In a way, he cleared what all is required to capitalize the growth that lies beyond production. Adoption of product development and investment in R&D has always benefitted those who’ve adopted it.

An earlier study by KIS value has also revealed about South Korea deriving advantage and gaining 28 times automotive trade balance (in $ million) by just increasing their investment in R&D by 1.4 times and achieving 6.8 percent share in global exports in 2011 from one percent in the year 2000.

OEMs themselves are taking up development of global platforms and global centres of excellence in India by investing in R&D and local product development capabilities. As they visualise a strong potential in Indian brains, it has subsequently resulted in rise in the number of engineers employed in R&D from less than a thousand in 2002 to more than twenty five thousand in 2012, as per an Ernst & Young study.

OEM R&D investments has resulted in rise in the number of engineers employed in R&D from less than a thousand in 2002 to more than twenty five thousand in 2012, according to Ernst & Young estimates Initially, there’s a need for the product development ecosystem to evolve that requires parallel support from government, educational institutions and OEMs. While government has taken positive steps, there needs to be long term vision, as Chairman, Godrej Group, Adi Godrej puts it, “Around 12-14 percent growth can be expected owing to the national manufacturing policy in the next two decades.”

Another study by McKinsey presented during the recent SIAM convention in New Delhi also suggests government to treat auto components as a strategic

Arvind Kapur

Collaboration between OEMs and suppliers can benefit both parties and help in shaping India as integrated development & manufacturing hub sector and create infrastructure and rationalize structure of indirect taxes like excise, central and state sales tax etc. The industry-educational institute relationship can also benefit the industry as the development of institutes with applied research can reduce the time required for engineers to develop industrial knowledge, which in the current scenario takes 3 years of on-job training. While this would reduce the mismatch existing between OEM and supplier expectations as well on the counts of R&D, it will also give the engineers the right exposure needed to step in the industry. However, there exists a need to incentivise and mandate research to a certain extent to promote such practices and gain subsequent advantages of the same.

Increased collaboration between OEMs and their suppliers can additionally benefit both parties, enabling them to take advantage of affordable R&D and help in evolution of India into an integrated development and manufacturing hub.

Suppliers need to determine their organisation type and take a firm decision on the R&D path in order to reap future benefits of the same.

They need to decide whether to follow the path of early followers and revert positively on the OEM pull to take up product development or be explorers and establish themselves first and then invest or become visionaries and lead by example.

While early followers can support OEMs in faster product development cycles, they should perform collaborative learning with OEMs and invest later on in independent R&D and allow OEMs to remain the ecosystem enablers.

Explorers on the other hand can take a step further and set up design cell and basic testing facilities. While this can make them capable for process engineering, it’ll also require industryinstitution tie-ups with institutions being the ecosystem enablers. An increased investment after initial success will further allow for better outputs as suggested by EY Analysis.

For the visionary technocrats, while initial investment will remain higher, it’ll end up in application of affordable Indian technology in global sphere. The investment in testing facilities will allow understanding design, prototyping testing and validation, it will lead to an end to end product designing and risk sharing with OEMs.

Auto Monitor

1 OCTOBER 2012

C O R P O R AT E

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Komax looking for larger presence Nabeel A Khan & Jagdev Kalsi New Delhi

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oma x Automat ion India Pvt Ltd, a wiring harness machine supplier, has been maintaining a low profile and did not seem to be much inspired by the high spirited growth in the Indian automotive industry.

Switzerland-based firm globally with a turnover of 400 million Swiss Franc had set up a production unit in China but continued to import machines in India and logged revenues of `30 crore in

the last fiscal. However, now it is strongly mulling over option to start manufacturing or assembly unit for some of the machines in India by 2014.

“We don’t have volumes here, however we see there is a potential coming up in the country.

Our headquarters will take the appropriate decision,” Managing Director, Komax Automation India, Pradeep Kaura said.

If investments are made in a production facility, the first product would be bench top machines in India. Koma x expects selling about 150-200 machines a year that will make

production of these machines viable in the country.

The multi-national company first made its entry in India in 1987 with Burgeon Systems Pvt Ltd and since then sold wire processing machines and support systems. Komax has set up a manufacturing facility in China and is waiting for Indian market to mature before making such an investment commitment here.

“We are in discussions to develop some parts of machines here and then assemble in India. We’ll need a volume to about 100-200 machines a year to justify production in India

however our current volume is 25-30 machines,” he added.

The company employs a workforce of around 1,100 people in 60 countries.

In this financial year, Komax aims at doing `40 crore business in India. It unveiled a fully automatic wire harness machine at the Delhi Auto Expo 2012. Talking to Auto Monitor, Sales Director-Asia, Komax AG, Andreas Schenk said, “We wanted this machine to be in India by 2012, but due to some other critical project which are underway we expect it be delayed till next year. For such a machine the cost can be between `25 million to ` 55 million. We also have cheaper equipment as well. Even if it takes two to three years for market to develop here for such products, we’ll be happy.”

The automated wire harness making machine can do every process in one go, and have complete harness in one shot.

Komax believes that the output is of good quality standards as well and there won’t be a need to check on a lot of quality.

The same will also not need a

Komax expects selling about 150-200 machines a year for production viablity in India. Komax has a manufacturing facility in China and is waiting for Indian market to mature before making such a committment here lot of storage and require one operator, instead of five-six people to carry out the operations and will be better suited for smaller size cables and components where manual work is very difficult.

As Koma x India eyes expansion in India, its Asia strategy includes having three major hubs, a distribution centre in Singapore where we have equipments for very quick delivery into India, a manufacturing hub in Shanghai and a representative office in India.

New transportation policies to bring order to the CV segment: F&S study Our Bureau Mumbai

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mpact of Regulatory Trends on Commercial Vehicle industry in India, a study by Frost & Sullivan finds that the country is fast catching up with the global emission regulation trends, which will translate into world-class products with the implementation of Euro V and Automatic transmission standards by 2015.

The Government of India’s budget for FY 2010-11 clearly point toward heavy investments in the Indian infrastructure segment.

Acknowledging the rising need for green initiatives, the Government also mandated the use of compressed natural gas (CNG) for the registration of CVs in the metro cities.

Fiscal policies regarding goods and services tax (GST) across India is likely to be implemented soon. This will pave the way for an efficient, single tax system for the movement of goods across the nation and make the supply chain more effective.

“By eliminating multiple taxes and quotas at the state entry points, GST is set to integrate state economies and boost overall growth,” said Frost & Sullivan analyst. “CV owners can perform rationalization similar to warehousing on distribution and transportation routes, as taxes cease to become a defining factor.”

Government subsidies for components used in green and fuel-efficient vehicles will encourage vehicle owners to switch to fuel-efficient vehicles in the near future. Apart from favourable regulations, technological advancements will also play a role in greatly improving fuel efficiency and slowing down environmental degradation.

The entry of global CV majors to the market will significantly raise the bar on technological innovations and compel domestic manufacturers to refine their designs and engineering, especially in the bus segment. Currently, the bus segment is disorganised and heavily dominated by small-scale participants with inadequate resources to cater to the huge demand. More public-private-partnerships could remedy this situation and make public transport more accessible, efficient, and comfortable.

“Consequent to the strong economic growth in India, the expanding urban population as a percentage of the total population is expected to be the key driver for public transport and thereby, CVs,” noted the Analyst.

1 OCTOBER 2012

C O R P O R AT E

Four lakh car a vital cog in Nissan’s Power88 mid term plan Our Bureau New Delhi

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n order to be a major player in India, Nissan is set to enter the volume segment with a four lakh compact hatchback and also aims for an eight percent global market share by 2016, as per Nissan’s Power88 business plan. The four lakh compact car is likely to be made available by 2014 and will be a Datsun product.

Discussing Nissan’s Power88 mid term business plan, Corporate Vice President, Africa, Middle East and India, Toru Hasegawa said, “Nissan’s Power88 plan aims at an eight percent global market share and eight percent sustainability COP

by FY2016. Nissan will introduce 51 products globally and aims at 60 percent share from emerging markets by 2016 which is currently 40 percent.” He further said that Datsun products are India bound by 2014 and Nissan will introduce 10 products in India by 2016.

About the compact car, MD &

Auto Monitor

CEO, Nissan Motor India Pvt Ltd, Takayuki Ishida said, “We’ll have a Datsun product soon and it will not be very small but definitely smaller than the Micra.” He further added that Nissan is seriously looking to have products in the SUV market and said, “We have a lot of choice of products and platform for the SUV market and we are seriously studying on how to get into that segment.”

Power88 plan from Nissan also estimates Indian market to grow to a four million units per annum by 2014. Nissan’s current production capacity is around two lakh units and it maintains that the plant is able to cater to a production of four lakh units as a part of flexible manufacturing system. Nissan also aims at multiplying its dealership network to four times to 300 by FY16 from 75 dealerships currently. Nissan will also be coming up with a new dealership in Delhi in the month of October. It has sold 18,203 units from April-August 2012 and is targeting 66,000 sales for the current year, which is almost twice as many sales as in the pre-

vious fiscal year.

Nissan Evalia priced at `8.49 lakh Nissan has launched its Urban Class UV Evalia at a base price of 8.49 lakh (ex-showroom New Delhi) for the XE variant and goes up 9.99 lakh for the top end XV variant. The Evalia will be powered by Nissan’s 1.5l K9K diesel engine and will have four variants. All the variants of Evalia get ABS and EBD with Brake Assist.

The company claims a fuel efficiency of around 19.3 kmpl according to its test cycle.

The seven-seater Evalia is Nissan’s third made in India product with over 80 percent localisation. “We are expecting the Evalia to do anywhere between 2,000-2,500 units per month, that will be our target,” said VC & MD, Hover Automotive India, GM Singh at the launch of Nissan Evalia in Delhi. Nissan Evalia is set to compete with the likes of Maruti Suzuki Ertiga, Mahindra & Mahindra Xylo and Toyota Innova.

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Cross-shopping percentage goes up in JD Power study Our Bureau Mumbai

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efore finalizing on a car purchase, 28 percent Indian car shoppers are looking at multiple options according to the latest JD Power Asia Pacific report, Escaped Shopper Study (ESS) 2012. This figure has gone up from 23 percent in 2011. JD Power says this is due to increase in new models in the market.

The study, which examines the reasons why new-vehicle shoppers consider but ultimately reject certain models in favor of another, finds that 28 percent of new-vehicle buyers considered one or more vehicles before selecting the vehicle they ultimately purchased, up from 23 percent in 2011. The increase in cross-shopping rates is primarily driven by repeat new-vehicle buyers—shoppers who are either purchasing an additional vehicle or replacing their household vehicle—as more than one-third of repeat buyers considered one or more models during their shopping activity, an increase of nearly nine percent from 2011.

The cross-shopping rate among first-time vehicle buyers remains largely unchanged from 2011 at 20 percent, according to a JD Power release.

This buying trend is higher in repeat new-car buyers than first time buyers according to the report. It’s due to the willingness to go in for new launches than tried and tested models. “Repeat buyers tend to shop more than first-time buyers, but this has further increased in 2012 with the launch of several new mod-

els in the country,” said Executive Director, JD Power Asia Pacific, Singapore, Mohit Arora. He added, “Repeat buyers typically have a greater willingness to experiment with new models that are launched in the market. With the significant increase in newmodel launches in 2012, this set of shoppers clearly has a wider range of choices.”

One-third of customers rejected the vehicle they initially considered purchasing because they wanted a vehicle with better fuel economy. Price continues to be among the major reasons for rejecting a vehicle. However, shoppers cite price less often in 2012 compared with 2011 as buyers increasingly prefer vehicles that provide a cost-of-operation advantage.

It is interesting to note that running costs are given more priority than the price of a vehicle. “Vehicle operating costs are superseding initial acquisition costs in the buying decision process, as shoppers increasingly choose between similar priced vehicles,” said Arora.

In terms of consideration, Maruti Suzuki continues to be the most considered nameplate among vehicle buyers, despite a decline in consideration rate year over year. Conversely, the consideration rates of such makes as Toyota and Mahindra sharply increase from 2011. The 2012 India Escaped Shopper Study is based on responses of 7,382 buyers and 2,721 rejecters of new cars and new utility vehicles who purchased their vehicle between September 2011 and April 2012.

The study was fielded from March to July 2012.

Auto Monitor

1 OCTOBER 2012

TESTING

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CFD helps to make engines more efficient

Thomas Lauer Vienna University of Technology, Austria

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he development of internal combustion engine concepts with lowest emissions and fuel consumption requires an early knowledge of the combustion. Therefore, a method was developed at the Institute for Powertrains and Automotive Technolog y at the Vienna University of Technology that allows a prediction of the combustion stability based on simulations with STAR-CD.

Reducing the green house gases In the recent past, the public’s

attention has been drawn more and more on environmental pollution caused by traffic. Particularly the influences of so called green house gases on the future climate have been discussed intensively.

The European Union, for example, is preparing a restriction of the CO2-carfleet-emission of 95 g/km by 2020. To meet these demands, automakers invest considerable efforts to make their engines more efficient and less thirsty.

For gasoline engines the recirculation of inert exhaust gases and their mixing with fresh air is an efficient measure to reduce the fuel consumption. Unfortunately, the presence of inert gases makes the ignition of the mixture less stable. Therefore, an optimal control of the in-cylinder flow, the turbulence and the fuel preparation in the engine’s combustion chambers is necessary to achieve high residual gas recirculation rates and the best fuel economy. This is where CFD comes into play!

STAR-CD and es-ice make the combustion chamber accessible All the necessary models to sim-

ulate the turbulent flow field and mixture preparation in the combustion chamber are implemented in STAR-CD. In the following, the turbulent flow field was modelled with the approved k -Model for high Reynolds-numbers and the fuel injection with the Lagrangian approach. In addition, the expert system es-ice provides the possibility to create moving meshes that take the motion of the valves and the piston into account. Care has been taken to model the spark plug as detailed as possible to obtain accurate results for the flow field where the spark ignites the mixture and the flame propagation starts.

Image 1 shows typical results of

a transient in-cylinder simulation.

The flow field during the engine’s intake stroke and the distribution of the fuel, the residual gas and the turbulence in the combustion chamber at the time when the spark ignites the mixture can be observed. On the other hand, a more and more unstable combustion is measured at the engine test bench when the residual gas concentration is increased, what finally leads to misfiring. For a prediction of the ignition limit and therefore the maximum acceptable residual gas recirculation rate, it is necessary to find a “link” that allows an interpretation of the mixture properties calculated with STAR-CD to explain the

unstable combustion observed at the engine test bench.

Turbulent and chemical scales characterize the premixed flame This link was found by analysing the turbulent and chemical scales for premixed flames. A turbulent flow field consists of a variety of turbulent structures, so called eddies, that influence the flame immediately after ignition.

The big eddies with a size larger than the thickness of the flame front wrinkle and extend its surface. The small eddies with a size comparable to the flame front thickness penetrate the reaction zone.

Application Engineering Both effects have a characteristic impact on the flame propagation and extinction. These complex interactions and their influence on the ignition stability can be described with dimensionless parameters, like the Damköhler-number, that relate the turbulent and chemical scales and can be derived from the simulation results of the turbulent flow field. Typical input data are the pressure, the temperature, the turbulent kinetic energy, the residual gas concentration and the local air/fuel ratio. However, to compute the numerous equations efficiently an automated post processing was necessary. The application of the STAR-CD macro functionality proved to be a good approach for this task. Thus, a macro was developed to carry out the necessary computations and to store the additional data in files for further analysis.

A limit for a stable ignition By applying this methodology to two gasoline engines with different injection concepts and in-cylinder flows a limit for a stable ignition could be determined. The dimensionless parameters that were derived from the simulation results were plotted in the BORGHIdiagram that allows a visual representation of the premixed flame characteristics in dependence of the turbulent and chemical scales, see Image 2. The straight lines of constant Damköhler- and turbulent Reynolds-numbers are included in the diagram. All simulations were carried out at an operation point where the engines revealed a limit for a stable combustion on the test bench. It could be shown that the Damköhler-number describes the ignition limit satisfactorily. It must not drop below a value of 12.5 to “keep the fire burning” in a stable way.

A comparison with results from the engine test bench regarding the maximum acceptable residual gas recirculation rate that still enables a stable ignition showed a good agreement with the predictions of the numerical method.

Conclusion A recirculation of residual gas helps to improve the fuel economy of gasoline engines.

To achieve a stable ignition with high residual gas concentrations in the combustion chamber a proper prediction of the numerous interactions between the turbulent flow field and the initial flame are necessary. Based on the simulation results from STAR-CD dimensionless parameters have been computed to characterize the behaviour of the premixed flame after ignition. The modelling capabilities of es-ice and the macro functionality of STAR-CD helped to solve this task efficiently. A good correlation with observations at the engine test bench was found for the allowable residual gas recirculation rates.

Thus, STAR-CD contributed to an improvement of engine’s fuel economy and emissions.

1 OCTOBER 2012

G L O B A L WAT C H

Auto Monitor

21

Four premieres for Kia at Paris show

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he all-new Kia Carens compact MPV and the new second-generation Kia pro cee’d make their world premieres at the Mondial de l’Automobile 2012 in Paris. In addition, the new Kia Optima Hybrid saloon and new Kia Sorento SUV both make their European debuts.

The all-new Carens returns Kia to one of the most competitive market segments in Europe and is designed and engineered to meet the needs and expectations of modern families. It features sleek aerodynamics, a cab-forward design that ensures generous interior space with a choice of five or seven seats, and a broad range of convenience and safety features. A choice of four powertrains is available, with power ranging from 113 bhp to 175 bhp and CO2 emissions from 118 g/km.

Made in Europe and on sale next spring, the new threedoor Kia pro_cee’d has all the sophistication of the second-gen-

eration cee’d five-door and cee’d Sportswagon, while dramatically progressing the enhanced sporty appearance that made its predecessor so popular.

The new pro_cee’d offers buyers the same range of engines, transmissions and running gear.

The overall length (4,310 mm), width (1,780 mm) and wheelbase (2,650 mm) are also the same as the five-door, while the roofline is lowered by 40 mm, the B-pillar is moved back by 220 mm, the side panels behind the B-pillar are new, as are the side windows, C-pillar, tailgate, rear light clusters and rear bumper.

Exclusively for the European market (left-hand drive only); the new Optima Hybrid is Europe’s first D-segment petrol hybrid, featuring a Kia-developed ‘parallel hybrid system’ with a 2.0-litre petrol engine and 30 KW electric motor. Maximum power is 188bhp, acceleration from 0-62mph takes 9.4 seconds and top speed is 120 mph - and class-leading fuel economy (52.3

Suzuki S crossover concept may lead to 2013 production car

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uzuki’s Paris centrepiece, the S-Cross mid-sized crossover concept, is officially described as a study to showcase the design direction the company will take in future. Scratch beneath the surface, however, and it is pretty clear that Suzuki plans to build something similar starting some time next year.

S-Cross is built on an allnew in-house C-segment platform showcased at the Frankfurt show earlier and it is likely to go into production at Suzuki’s Hungarian plant S-Cross is built on an all-new in-house C-segment platform, and insiders are already saying they expect a production version to possibly be shown at Frankfurt this time next year and to go into production at the company’s Hungarian plant. Though primarily aimed at Europeans, S-Cross will be a global car.

There will be a 1.6-litre Fiat diesel plus an unspecified petrol option, and both two- and four-wheel drive. There are no clues as to the name, but SX4, the badge used for a current small Suzuki crossover, is believed to be one possibility.

Suzuki is currently on a high in the UK because of the downsizing trend, with sales up 22 per cent so far in 2012, putting the company on course for an end-of-year total of 25,000.

Almost half of sales are of the Swift, with the Alto and Splash also doing well.

mpg), plus low CO2 emissions (125 g/km).

The new Kia Sorento SUV incorporates significant changes, including a completely re-engineered bodyshell, a new 188bhp 2.4-litre GDI engine, and a choice of enhanced diesel powertrains for better fuel economy with lower emissions.

The improved Sorento exhibits greater levels of refinement and additional high-tech convenience and safety features.

“The four Kia premieres at the Paris Show cover a broad spread of automotive segments and highlight the diversity of our expanding product line-up,” comments Hyoung-Keun Lee, Vice Chairman and CEO, Kia Motors Corporation.

“The new Carens will have great appeal for families with an active lifestyle who seek both style and practicality, while the new pro_cee’d stylishly communicates performance and

dynamism from every crease and curve,” continues Lee. “The two European premieres also show an important step forward for Kia. The Optima Hybrid showcases ingenious engineering and advanced technologies that will have unique appeal, and significant developments make the new Sorento a very strong SUV contender once more, with major improvements to fuel economy and refinement,” Lee concludes.

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1 OCTOBER 2012

G L O B A L WAT C H

Ford reveals new Fiesta, Ecosport at Paris Motor Show

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he new Ford Fiesta will target fuel economy with six powertrains for the UK offering both sub-100 g/km CO2 emissions and returning from 65.7mpg. The customers will also be able to specify an ECOnetic Technology variant expected to deliver 87g/km CO2 emissions and return 85.6mpg.

Ford has sold more than 15 million Fiestas around the world and the stylish new model features a sharper design and a host of exclusive technology features - as well as an extensive range of powertrains. It will be equipped with 100PS and 125 PS 1.0-litre EcoBoost petrol engines, 80PS 1-litre petrol engines with directinjection and Twin Independent Variable Camshaft Timing, 75PS 1.5-litre Duratorq TDCi diesel engine with optimised fuel injection, low-friction piston coatings and a variable pressure oil pump.

Ford’s Auto-Start-Stop system, which automatically shuts down the engine when the vehicle is at idle and restarts the engine when the driver wants to move off, will be available at launch with the 1-litre EcoBoost, 1-litre petrol and 1.6-litre Duratorq TDCi ECOnetic Technolog y powertrains as standard. Ford’s advanced 6-speed powershift transmission is also introduced to the range for the first time.

Ford has developed new chassis and suspension components to improve the ride quality and refinement of new Fiesta, and tuned the Ford Electronic Power Assisted Steering system. The new Fiesta’s package of leading Ford driver assistance and safety features will include MyKey, a segment-first technology that allows parents to encourage safer driving and limit their teenager’s exposure to risk at the wheel, as well as

in-car connectivity system SYNC. SYNC will feature Emergency Assistance that directly connects the vehicle occupants to local emergency services operators after an accident, in the correct language for the region whilst continuing to liaise with the driver in English. Also introduced to new Fiesta is first-in-class technology Active City Stop, a system

already well received in Focus, designed to help drivers avoid low speed collisions.

The dynamic new version of the best-selling Fiesta features a sharper design inspired by the latest Ford global design language and concept vehicles, including laser-cut headlamps incorporating LED technology (on Titanium and Titanium X) and a power-

dome bonnet. Ford ergonomics and interior design experts have reconfigured the Fiesta interior with relocated switch-gear, new materials, interfaces and displays. A Titanium X model will be introduced into the UK which broadens this specification further by adding features such as the Keyfree system and partial leather as standard.

The 1 litre EcoBoost petrol engine with 3 cylinders is being introduced to C-MAX, Grand C-MAX and Mondeo Ford of Europe revealed the all-new EcoSport SUV at the Paris Motor Show. It is based on Ford’s global B-segment platform and will go on sale for European customers within 18 months. It will be equipped with the one litre EcoBoost petrol engine and will line up alongside all-new Kuga and later Ford Edge, a larger and more premium vehicle already popular in North America.

All-new EcoSport is the first global Ford to be developed entirely in South America and was launched in Brazil this month. Introduced in 2003, the groundbreaking first model established a new segment there and has gone on to sell more than 700,000 units in the region. The new model is expected to help drive further growth for Ford in both India and China when it is introduced in those key markets in 2013.

In Europe, the all-new EcoSport will be equipped with Ford’s EcoBoost petrol engine, which combines performance with efficiency.

The one litre EcoBoost petrol engine first went on sale in the Focus this year before being introduced to all-new B-MAX, with models including C-MAX, Grand C-MAX and all-new Mondeo also due to receive this innovative three-cylinder powertrain.

The distinctive and aerodynamic Ford EcoSport will feature a large front grille; slim, detailed headlights; and cladding on the side sills and bumpers. It will be equipped with Ford SYNC in-car connectivity system, which uses voice-activation technology to enable owners to answer phone calls and select music from devices connected via Bluetooth or USB. Ford SYNC also includes Emergency Assistance, which directly connects the vehicle occupants to local emergency services operators after an accident, in the correct language for the region.

EcoSport will offer a comprehensive package of driver assistance technologies including anti-lock brake system, Electronic Stability Program, and Hill Launch Assist.

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1 OCTOBER 2012

G L O B A L WAT C H

Honda to offer Civic Type R, compact SUV, sports motorcycle

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onda recently outlined the product, technology and business developments and direction that are planned to drive Honda’s growth by fiscal year 2017 with a range of new developments and technological advancements in automotive, energy and mobility products and an increase in global customers by 60 per cent from 23.9 million to 39 million.

The announcements made

by CEO Ito will see the intro-

duct ion of new products and technolog ies to t he Eu ropea n ma rket including new Civic Type R for Europe in 2015, all new compact SUV model, three new hybrid technologies, a new fuel cell electric model in Japan, US and Europe in 2015 and new supers sports motorcycle based on MotoGP machines.

In addition to the introduction of a new NSX, Honda is looking at development of an all-new Civic Type R for Europe. The Type R brand has a passionate following from Honda customers and the new model will again aim to set new standards in performance and handling. Developed specifically for the European market and with the application of technologies developed through Honda’s participa-

tion in the World Touring Car Championship (WTCC), the allnew Type R will aim to become the fastest front-wheel-drive vehicle on the Nurburgring race course. This new model is scheduled for introduction in 2015.

Honda will strengthen its four-wheel line-up in Europe with the introduction of a new compact small SUV model, to compete in this rapidly growing sector. Honda will build on its hybrid expertise to introduce three new hybrid systems.

Each system will possess unique cha racter ist ics a nd t heir deployment will reflect varying customer needs.

Firstly, the company will further develop its lightweight and compact one-motor hybrid system with the aim of achieving best in class fuel economy among all hybrid vehicles. Improvements in motor output and battery performance, coupled with a newly developed transmission will help to extend the zero emission

The company will further develop its lightweight and compact one-motor hybrid system with the aim of achieving best in class fuel economy among all hybrid vehicles. It is also developing a new two-motor hybrid system for mid-size vehicles electric driving range. It is also developing a new more powerful two-motor hybrid system for mid-size vehicles.

Finally, a highly efficient and high output 3-motor hybrid system, the Sport Hybrid SH-AWD (Super Handling All Wheel Drive) will focus on driving perform-

ance. This technology will be applied to the new NSX. Honda considers fuel cell electric vehicles (FCEVs) to be the ultimate environmentallyresponsible technology and as such, has attempted to lead the industry in R&D and sales activity.

The introduction of the FCX Clarity in 2008, demonstrated Honda’s progress in this field. Starting in 2015, Honda will launch an allnew fuel cell electric model which will showcase the significant technological advancements and cost reductions that Honda has accomplished since the launch of the FCX Clarity. This model will be introduced to Japan, USA and Europe.

Honda is developing a new super sports motorcycle which will feature technologies derived from Honda’s MotoGP machines.

This bike will seek to deliver the same passion and excitement that the RC30 (VFR750R) super sports bike created when first introduced in 1987.

DVLA and FLA agree vehicle recovery scheme for financed cars

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he Driver and Vehicle Licencing Agency (DVLA) and the Finance & Leasing Association (FLA) recently launched a vehicle recovery scheme.

This new agreement enables finance companies to rescue financed cars that have been impounded by the DVLA because the driver has no road tax (driving a car that is subject to a finance agreement without Vehicle Excise Duty (VED) is a breach of the finance contract).

This new scheme builds on the scheme the FLA already has in place with the majority of police forces in England, Scotland and Wales which enables the recovery of cars impounded by the police.

With more than 1.25 million new and used cars bought on finance each year, co-ordinated action by the DVLA and finance companies will deliver significant road safety benefits as well as helping to keep the cost of finance affordable for law-abiding motorists

Better Options With more than 1.25 million new and used cars bought on finance each year, co-ordinated action by the DVLA and finance companies will deliver significant road safety benefits as well as helping to keep the cost of finance affordable for law-abiding motorists. “Our new vehicle recovery scheme with the DVLA will allow finance companies to be able to collect cars that have been illegally driven by their customers. This will help make our roads safer for law-abiding motorists and will also mean that finance companies will be able to collect their cars before they go to the crusher or are sold at auction,” said Head of Motor Finance at the FLA, Paul Harrison.

The FLA predicts that approximately 1,000 illegal cars worth approximately £5.5 million will be identified every year because of this new scheme.

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G L O B A L WAT C H

28

New Toyota Auris to go on sale in December

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oyota Auris will go on sale in December in a four-grade line-up with on-the-road prices from £14,495. All powertrain options will be available from the start of sales: 1.33 dual V VT-i and 1.6 valvematic petrol and 1.4 D-4D diesel units, plus Auris Hybrid with Hybrid Synergy Drive. The petrol and diesel models all use a six-speed manual transmission, with Toyota’s Multidrive S CVT offered as an option on the 1.6 valvematic. Auris Hybrid uses an E-CVT automatic.

Trim Options New Auris will introduce a new Toyota grade structure, which rises from an entry-level Active trim, through Icon and Sport to the top-of-the range Excel. The 1.33 dual V V T-i engine will be available in Active and Icon grades; the 1.6 valve-

matic in Icon, Sport and Excel; and the 1.4 D-4D in all trims.

Auris Hybrid will be offered in Icon and Excel versions.

All new Auris will be equipped as standard with seven airbags, a new follow-me-home lighting system, Hill-start Assist Control, Vehicle Stability Control and LED daytime running lights.

Advanced Technologies A new park assist system will be available in the Auris range, fitted as standard to Excel models and an affordable option for Icon and Sport versions. Not only will it steer the car neatly into a space, it will also help manoeuvre it out again.

Suitable for kerbside parking, it is designed to be quick, safe, simple and intuitive to use, and comes with front and rear parking sensors. Activated using a button on the centre console,

it uses ultrasonic technology to determine whether a parking space is large enough for the car. Once the measurement is complete, the driver is invited to stop. The system will then govern the reverse steering of the vehicle into the parking space, with the driver controlling the accelerator and brake; for added safety, the system also indicates when the driver should

apply the brakes.

Capacity Constraints The system is more sophisticated than any previously featured on a production Toyota in the UK, being able to cope with non-standard parking situations, including on bends.

It will also take account of objects on the opposite side of the road that might affect park-

ing manoeuvres, for example other parked cars or obstacles in narrow streets. It also minimises the degree to which the car steers out to the opposite side of the road in order to enter a space.

The system’s park-me-out function will help the driver exit a tight parking space by judging the clearance from the vehicle in front and providing the necessary steering inputs.

The 175,000 annual capacity at Toyota’s Burnaston factory might not be enough to meet demand for Avensis and the new Auris. The plant currently operates on two shifts and capacity increase is on the cards Owners can upgrade their new Auris’s specification with a range of comfort, convenience and styling options. The Toyota Touch multimedia system on Icon, Sport and Excel models can be upgraded to Toyota Touch & Go, introducing satellite navigation and more sophisticated on-board connectivity and Bluetooth functions.

A Skyview panoramic roof, measuring 2,340 by 1,280mm, available for Excel models, brings significantly more light into the cabin and increases the sense of spaciousness. Leather upholstery can also be specified for Auris Excel.

A Comfort Pack is available for Sport grade, which bundles rain-sensing wipers, dusk-sensing headlights, Smart Entry and Start and a folding function for the door mirrors.

The 175,000 annual capacity at Toyota’s Burnaston factory might not be enough to meet demand for Avensis and the new Auris, unveiled in Paris, according to Toyota Europe boss Didier Leroy.

The plant currently operates on two shifts and the company is looking at various ways to increase capacity. “We could have more than two shifts, we don’t know. We’re looking at how to increase capacity,” said Mr Leroy.

Sales in the UK will top 100,000 this year, he said, up from 90,000 last year. Sales in Europe will also grow for the third successive year, reaching more than 830,000 from some 808,000 in 2010.

The C segment is “the new centre of gravity” for TME, with new Auris joining Verso, he revealed. “I really expect customers to share our passion for this car.” Design, quality and driving dynamics are all a major step forward from the previous model, he said.

Toyota Europe is growing and growing profitably, said Mr Leroy. While last year’s profit was down to financial services, this year both financial services and the automotive business will make money.

Toyota Europe is also moving to a position where it will be able to define and develop Toyota’s next generation of A, B, and C models, he said, adding that the company is looking to increase its 500 R&D staff to achieve that.

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