Auto Monitor 24 june 2013 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. 13 No. 22

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24 June 2013

NORTH INDIA SPECIAL Pg 16-25

INTERVIEW

Pg 08

48 Pages

INTERVIEW

`50

Pg 10

Into the big league

Aftersales strength

Nitish Tipnis, Director, Sales & Mktg, Hover Automotive India

Pavan Shetty, Head of Operations, Lamborghini India

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Advik casts Ventech Anand Mohan Pune

ast-mover in the components industry, Advik Hi-Tech is setting up a die-casting plant in Chakan to aid its oil pumps business. The die-casting venture will be a subsidiary of Advik Hi-Tech, called Ventech. Set up with an investment of `30 crore for the ﬁrst phase, Ventech will have six die-casting machines, a paint shop and a full-ﬂedged machining setup. The plant is needed, says Aditya Bhartia, managing director of Advik Hi-Tech, because die-casting is a large part of the 4-wheeler oil pump. The plans begin to fall in place for the next big move for Advik. From being a predominantly two-wheeler component supplier, Advik is now seeding the four-wheeler and large commercial vehicle industry. Just last year, the company started supplying oil pumps to ZF for a 9 speed transmission that goes into heavy trucks. Volumes expected from this contract are between 50-60,000 units per year. The product is at present under testing at ZF Germany. Advik expects clearance by July. For four-wheeler oil pumps, the company has collaborated with a German company, FMO Technologies. They are Advik’s designing and testing partners for four-wheeler oil pumps. But entering the four-wheeler oil pumps business on a full scale requires a dedicated manufacturing set up. And the reason why the company is setting up its third plant at Chakan. Advik has acquired land 5km away from its existing facility and is working on

its master plan. In total, it will be the seventh plant for the company and third in Chakan including the Ventech facility. The company isn’t diversifying into many components by adding a host of products to its portfolio. Advik’s strategy is simple, says Aditya, “We’d rather do few things and be the best in the world in those than do many things and be one of the many players.” He adds, “The mother technology for a four-wheeler oil pump to a two-wheeler oil pump is the same. The adaptations change.” There are two types – variable displacement and fixed displacement. Euro VI emissions and beyond qualified oil pumps are variable displacement, so when the emission norms change to these levels, it will be used more. Right now, every car manufactured in India uses fixed displacement oil pumps but Advik wants to be ahead of the curve and so is also looking at variable displacement. Its next stage of growth will come from a new vertical, namely the fourwheeler segment. In addition to oil pumps, Advik is also the second largest producer of tensioners at eight million units and third largest manufacturer of de-compression units manufacturing about one million units. Not a commonly used component, de-compression units are fitted in higher capacity motorcycles to eliminate the recoil during a kick-start.

combi-brake system among other components for the two-wheeler major. This part uses Honda patented technology, and in India, Advik is Honda’s chosen partner. This means that when Honda sets up a two wheeler manufacturing unit, Advik opens one in the vicinity. The control cables in the combi-brake cannot be bent. So they have to be shipped in big trolleys making proximity to the OEM’s plant essential, says Aditya. Secondly, capacity of the Chakan plant is packed as well as those at the Uttarakhand plants. Simultaneous to the inauguration of HMSI’s Narsapur plant in Kolar district, Advik also opened doors to its ﬁfth manufacturing plant. The advantage of opening another plant in Bangalore is not only getting assured orders from Honda for its 1.2 million per annum capacity plant but it also gets to set up machines for other components. That means being Aditya Bhartia, Managing Director, Advik, Hi-Tech.

Set up with an investment of `30 crore for the first phase, Ventech will have six die-casting machines, a paint shop and a full-fledged machining setup.

Interview: NK Minda, Chairman, ACMA (North)

available to the southern belt. The plant in Bangalore was set up to primarily deliver components to HMSI but Aditya says, “We will deﬁnitely look at other customers in due course.” Just a 13 year old company, Advik is scaling new heights in the component industry at a brisk pace. It is the largest manufacturer of two wheeler oil pumps in the world manufacturing 12 million units per annum. Being a large market does help, but since the company started manufacturing this product in 2003, it has bagged orders from every OEM except TVS (it buys oil pumps from a family group company).

How GNA Udyog is warming up

Global Plans

Better off A component manufacturer may publicly treat every customer as equal but in a gloomy economy he would deﬁnitely have a preferred partner. In Advik’s case, it’s HMSI. Advik manufactures the

North India Special Feature: The new roar Rockman Industries: Expansion plans

Interview: Jayant Davar, Chairman, CII (North)

With majority of the Indian market in the two-wheeler industry captured and a foray into the

four-wheeler industry well on course, Advik’s next frontier is global markets. Aditya comments, “We are seeing good traction from our global customers.” Advik started exports three years ago and 40 percent of the large Indonesian two wheeler market is already under their control. He adds, for higher growth than at the domestic front, exports is the answer. “The domestic market will grow at about ﬁve percent every year. I don’t think we will be able to grow at 20 percent.” The two-wheeler market as a

whole didn’t grow too much last year but Advik grew at 17 percent. That’s because Honda grew and their exports business gained momentum quickly. Buoyed by this, Aditya says, “We are going to be growing at 25 percent based on the business plans we have made.” He adds with conﬁdence, “And this not an aggressive target. Our budgeting is done at 25 percent growth.” This year, majority of the growth will come from the two-wheeler segment for Advik. Next year the company expects 4-wheelers and die-casting chipping in.

Advik’s spanking new facility in Bangalore built near the HMSI plant.

EDITORIAL Lure of the land

ndia has come a long way from the time when the sole manufacturers were Maruti, Premier, and the few handful. Today, with the large number of manufacturers, both Indian and MNC, has given rise to what are called auto manufacturing hubs. At one point in time, manufacturers would look at regions that were most conducive in terms of investment. So sops played a major role. Over the years, as the market expanded, auto companies began considering using India as a manufacturing hub that would also allow them to export. So logistics and supply chain were looked at keenly. The new breed of vehicle manufacturers now consider the nearness of the port, not to the mention the market where their products could sell more. The government’s initiative to build national highways and dedicated freight corridors played a large role in where the auto hubs would be built. In the last few years, various state governments have been attracting various auto companies to set up their manufacturing unit thus enabling them to create employment for their people. Chennai, Gujarat, Chakan in Maharashtra, NCR in the north are just some of the examples of the state government’s strong pitch that helped these regions to become hubs. This week we have a special section on North India, and the way it has developed over the years. As a auto manufacturing

hub. Our feature on Page 16 highlights how the Punjab government too has jumped into the fray. Realising that the state is not highly conducive in terms of weather and being landlocked, the Punjab government has listed out incentives that would lure manufacturers. And this is just the beginning. Asking one auto company to build a plant would in turn imply that there would be a host of ancillary industries that would sprout up. The question is when would the dedicated corridors be ready that would allow them quicker access to the markets?

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QUOTABLE QUOTES Alan Mulally, President and CEO of the Ford Motor Co about the Indian market and their investment plan

Pavan Shetty, head of India operations at Lamborghini

Who would have ever taught that the small SUV would be the fastest growing segment in India? We look at where the world is headed and take a long-term view of our investments.

We will add a new dealer in Chennai or Bangalore. We have been receiving enquiries from the southern states and there is huge potential there.

FOUNDER & EDITOR, NETWORK 18 Raghav Bahl PRESIDENT & EDITORIAL DIRECTOR, TV 18 Senthil Chengalvarayan

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Views and opinions expressed in this magazine are not necessarily those of Network18 Media & Investments Ltd (Network18)*, its publisher and/or editors. We at Network18 do our best to verify the information published but do not take any responsibility for the absolute accuracy of the information. Network18 does not accept the responsibility for any investment or other decision taken by readers on the basis of information provided herein. Network18 does not take responsibility for returning unsolicited material sent without due postal stamps for return postage. No part of this magazine can be reproduced without the prior written permission of the publisher. Network18 reserves the right to use the information published herein in any manner whatsoever. Printed by Mohan Gajria and published & edited by Lakshmi Narasimhan on behalf of Network18 Printed at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Network18, ‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (W), Mumbai - 400 028. AUTO MONITOR is registered with the Registrar of Newspapers of India under No. 67827/98. Views and opinions expressed in this publication are not necessarily those of Network18. Network18 reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Network18 nor any of its employees accept any responsibility for any errors or omission. Further, Network18 does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved. *Ownership of this magazine stands transferred from Infomedia18 Ltd (Infomedia18) to Network18 Media & Investments Ltd (Network18) in pursuance of the scheme of arrangement between Network18 and Infomedia18 and their respective shareholders and creditors, as approved by the Hon’ble High Court of Delhi and the necessary approval of Ministry of Information and Broadcasting is being obtained.

CONTENTS CORPORATE Bracing up

The commercial vehicle segment is in a tight situation and stakeholders including finance companies and banks find themselves at the receiving end.

Keeping spirits high

ACMA has always been at the forefront in terms of protecting the interests of component makers. NK Minda, Chairman of ACMA (North region) explains how ACMA’s assistance is helping the component industry.

A patient man

Maninder Singh Seehra, CEO & President, GNA Udyog Ltd, is a patient man. He knows that this is not the right time to make new investments. And he is willing to wait.

RSB Transmission to establish technical centre

RSB Transmission is establishing a technical centre in Pune for product development and testing of automotive and industrial components and solutions.

‘We are a contracted industry’

Hedging bets

Many factors make North India an ideal location for a component manufacturer. As many as half of all cars and more than two-thirds of two-wheelers are manufactured here. Jayant Davar, Chairman of CII, Northern Region, and founder and Co-Chairman & MD of Sandhar Technologies explains why the region continues to lure.

Jayant Davar, Founder, Co-Chairman & Managing Director, Sandhar Group Strategy, explains how his company hedges its losses in market that is stagnant.

Corrigendum In the June 10, 2013 issue of Auto Monitor, article “Price has nothing to do with premium imagery”, Jnaneswar Sen’s name was misspelt as Janeshwar. The error is deeply regretted.

The new roar

North India has always been attractive to auto players. And now when NCR looks like it might burst at the seams, along come schemes from the Punjab government to lure investors.

THE OTHER SIDE

Rockman expands Rockman Industries, a Hero Group company, is expanding production capacity to strengthen its presence in the Aftermarket as well as create capacity for future demand.

Sanu Vasudevan, Country Sales Manager, TomTom India

Auto Monitor

24 JUNE 2013

FA C E-T O - FA C E

Into the big league With 95 Nissan dealerships operational in the country, Hover Automotive India (HAI) intends to increase the number to 400 by 2016. Apart from gearing up to launch new products this year, HAI is also formulating the launch strategy for the Datsun brand’s entry. Pradeb Biswas chats up Nitish Tipnis, Director, Sales & Marketing, Hover Automotive India, to unravel their marketing, sales and aftersales plans. What are the current priorities for Hover Automotive India? One of our current priorities is the 2013 Nissan Student Brand Manager (NSBM) campaign. The objective is to reach out to a wider pool of talent and get them to popularize the brand even more. The intention is to ensure that the youth of today become our brand ambassador’s tomorrow. The second priority is this year’s exciting product portfolio comprising a few refreshed and new vehicles which we will be launching. The Micra facelift with additional features has come out as an interesting product and we will be launching that soon. We will also be launching our compact SUV towards the end of the quarter. Following that there is the Datsun brand coming in the Indian market.

With these launches being scheduled the next priority is to expand our dealer network. We already have 95 operational dealers within three years. This is again something that has not been achieved by any other auto brand within three years of entering a country. The objective is increasing the dealer network to reach out to more cities. We are already present at 1,600 locations through our roadside assistance programme. What are the core achievements of HAI considering that it is in charge of the marketing, sales and aftersales of Nissan’s vehicles? We are the ﬁrst brand to achieve high service standards within three years after our market entry. This is one big achievement for HAI. The

number of customer complaints that we receive from customers is low as compared to industry standards. Our turnaround time with respect to service duration is the fastest compared to our competition. We are also going to introduce the quick service option. This will service cars in around an hour and a half. We have made efforts to reduce the total cost of ownership for our customers by bringing down service costs. The costs of our spare parts are also competitive. What are you dealer network expansion plans? Will there be separate dealerships for the Datsun brand? We will increase our dealerships from 95 to 400 by 2016. As our business partners, they need to be proﬁtable and once that happens they will be able to

service better and also expand. The Datsun dealers will be from within our existing set of deal-

er partners. Right now we are formulating the strategies for a dealer network for Datsun.

What is your criteria for recruiting dealer partners? The biggest criteria that we look for is passion to service consumers. The next is to achieve the right place and the right structure. We have a ‘Building Block’ model where we start dealerships with our minimum criteria. They should be able to put up a formidable sales and service infrastructure. It should be accessible to the consumers so we look at aspects like the consumer’s driving time to the workshop, service bays, hygiene factors post which we get down to the recruitment stage. This gets done three months prior to the start of the new dealership. We have the NSSW which is the Nissan Sales and Service Way which is our operating standard. Post this we offer frequent training to dealer partners to ensure they are efﬁcient in terms of speed and technology. Has the internal equation between HAI and Nissan improved over time? We work very much as an extended arm of Nissan. The objective is to basically ensure that everyone’s domain is utilised to work out a better methodology for the consumer. We are a startup which is just three years old so there is a learning process. It’s not about whether HAI or Nissan is at fault. It’s more of a learning phase and an evolution. We have achieved much in the Indian market in such a short span of time which has only been possible owing to the joint effort between Nissan and HAI. Some of your dealer partners have ended the association blaming indifference on part of HAI. What is your say on this? Every brand in their existing dealer network does face attrition. Our dealer attrition rate is very low. Out of the 95 dealers, we have more than 35 dealers with more than one point of contact for Nissan. This shows the strength with which they are ramping up our expansion plans. Obviously there will be a few dealers who will be compatible with us and the way they conduct the business especially considering the stiff competition. The dealers in automobile industry have a long gestation period. The attrition or dealers moving out is a natural occurrence. What is marketing strategy going forward? We have to become savvy. Right now we are focussing on making our strategies more digital. The major percent of consumers do a lot of research using the digital medium before they come to us. A lot of focus is being put on events and activities at the local level. We are localising our marketing programmes. One of our big achievements last year was the ‘Nissan Fest’ event. We had undertaken a few promotional activities across showrooms on weekends to engage consumer more. We also organised midnight sales in places like Coimbatore, Madurai and parts of Kerala, Delhi which did exceedingly well.

Auto Monitor

24 JUNE 2013

INTERVIEW

“Aftersales is one of our strengths” Automobili Lamborghini is the first luxury sportscar manufacturer to launch a special India edition car, the Gallardo LP550-2. The special edition supercar also marks Lamborghini’s 50th anniversary. Pradeb Biswas interviews Pavan Shetty, Head of Operations, Lamborghi India to find out what more the premium carmaker has in store for India. Last year was a good year for Lamborghini India with 22 cars being sold. What was the thought behind launching an India-specific Lamborghini? This is the first time that, not just Lamborghini, but any supercar manufacturer has launched an India edition car. There are three main reasons behind this. One is the happiness of our 50th year, second is our tribute to the country, and the third is our respect towards this nation. From the customer perspective this is a further addition to the exclusivity that they already have. There are only six special India editions being offered and customers are known to be attracted to these cars due to their exclusivity. What is your marketing strategy for the Lamborghini brand in India? Instead of trying to do something new, we are introducing into India everything that is happening globally. Apart from the track days we have also offered snow driving and night driving experiences. We are also coming up with a driving academy where the finer nuances of driving will be taught to participants. We also had a driver driving for the Super Trofeo recently which basically suggests that a lot of things which are happening globally are also being done in India. But the complexity in India is very different from what happens globally. We will ensure that we retain our exclusivity in this country.

How has the response to Lamborghini India’s track day events been? The feedback has been extremely positive and akin to dropping a big stone onto a standing patch of water. It created a lot of ripples, and a lot of enquiries were generated after that. One can use many words to describe our cars, but at a racetrack our cars speak for themselves. That was the logic behind our track days and we intend to offer a lot more of them to prospective buyers. In terms of aftersales and service, what steps has Lamborghini India taken to ensure all requirements are addressed? As a matter of fact, aftersales is one of our strengths at Lamborghini India. The few things that we have done in the past are serviced a customer’s car in the interiors of Kerala, ﬂown in a technician from Italy in a span of 10 days and ﬂying in a spare part in a span of six days. This can also be achieved for all other Lamborghini supercars that have been sold so far in India. In terms of servicing, convenience and ease of ownership, we are becoming similar to other supercar makers but the exclusivity that we offer will always remain a notch apart. A Volkswagen group press release had stated Lamborghini

will come under the regional parts distribution centre and it would be possible to deliver spare parts anywhere in India within 48 hours. Has this been achieved? It will take some time for that because the amount of parts stored will be equivalent to the number of cars sold here. So while we are growing there is a likelihood of this being achieved. If it makes sense in terms of ease and convenience then we will deﬁnitely take a look at it. In terms of supply chain management and logistics, how much time does it take to get a car from the factory to a customer in India? One car, from order to delivery, typically takes around four months. We either ship the car or transport it by air depending on the importance of the car in the country. Some customers are ready to pay extra and get their car ﬂown in so it’s customizable in that way. It is not a logistical nightmare but yes, we have to take customer requirements into consideration even at very short notice. As the head of operations at Lamborghini India, what are your goals and challenges? My current goals are to get the dealer network right and take care of customers who have already purchased a Lamborhini. By the end of this year we should be having three dealers opera-

tional in the country. We are making efforts to ensure that we have a good dealer body in the coming years. That would ensure we can take care of any customer in India. That is what we are getting into for now. My challenges are similar to what anyone else in charge of a luxury brand faces. The primary challenge is the current duty structure. Not just the quantum of duty, but also the variability involved and lack of direction which make planning very difﬁcult. You really don’t know how the next year or coming years will be. That makes the process very complicated. How do you see India’s supercar market shape up in comparison to other emerging markets? There are two things, one of which is the ease and convenience factor for the customer. In India, our customers are spread out across regions. Now, you cannot have a dealer everywhere

because it needs to make commercial sense. We will ﬁrst see what happens with three dealers till the end of the year and then if there is a need we will increase the number. There are quite a few Lamborghinis which are being sold through unorganised dealers which may have been imported privately by buyers. Is Lamborghini extending aftersales support to such buyers? Right now, our dealers are offering aftersales support and this will be a key feature for Lamborghini’s growth in India. We have also seen a lot of customers who want to upgrade, which means they want to give away their existing car and get a new one. So we will need to offer this service and we are currently trying to understand how this can be worked out. Depending on the opportunities available we need to tap in and ensure that are able to achieve success in this also.

Auto Monitor

Bracing up The commercial vehicle segment is in a tight situation and stakeholders including ﬁnance companies and banks ﬁnd themselves at the receiving end.

Abhishek Parekh Mumbai

24 JUNE 2013

NEWS

ccording to data from the Society of Indian Automobile Manufacturers (SIAM), sales of medium and heavy

trucks fell 26 percent in the last fiscal to 221,710 units, compared to 299,334 units in the previous fiscal. Overall commercial vehicle sales fell by 2.02 percent in 2012-13 to 793,150 units in the last fiscal, compared to 809,499 units in the previous fiscal. Overall commercial vehicle sales were down 10.6 percent in May to touch 55,458 units as compared to the corresponding month last year. Slowing industrial activity has forced many truckers to renege on loan payments in 2012-13, sharply raising the default rate to 3.87 per cent by March 2013. Overdues, or payments due for more than 90 days, on loans given last year, rose 49 per cent compared to December 2012, according to a recent report from India Ratings and Research. After a review of securitised loans, the ratings agency said delinquencies in commercial vehicle (CV) loans for all other periods remained stable or dropped below their peak levels. The protracted slowdown meant low business volumes,

along with a fall in freight rates, which fell 2.6 percent in the year ended March. An 18 percent rise in diesel prices added to the woes of truckers. Heavy and medium CV operators are the worst hit in this evolving scenario. In the quarter ended March 2013, eight of the 13 CV loan ABS (asset-backed securities) transactions of the 2012 saw an average jump of 150 basis points (quarteron-quarter) in 90+dpd (days past due) delinquencies, the report further pointed out. But not all players are distraught. “There has been some tightening in the repayment cycle as operators are unable to get their payments from customers in time in order to pay instalments on their vehicles. There could be multiple interpretations to this scenario and one needs to have patience and view the situation in a holistic manner. We are not unduly worried. We feel situation would stabilise in the coming months with the onset of monsoons,” said Umesh Revankar, Managing Director, Shriram Transport Finance Company. Dwindling freight demand is preventing transporters from demanding higher freight

rates, points out an analyst. The increasing prices of fuel further hit the margins of transporters and their debt servicing ability. The securitised paper, backed by construction equipment loans, tractor loans and mortgage loans, continued to exhibit a stable performance. Tractor loans of 2012 vintage fared better than earlier vintages. Instances of loans overdue for more than 180 days declined. At the end of the quarter ended March 2013, delinquencies dropped to 1.42 per cent from 1.7 per cent at the end of the quarter ended December 2012. According to ICRA, another ratings agency, asset quality indicators of retail-focused nonbanking financial companies (NBFCs), after seeing an improvement in the 2009-2012 period, started deteriorating in 2012-13, due to the weak operating environment. Gross non-performing assets rose from 1.6 per cent in March 2012 to 2.2 per cent in December 2012. For NBFCs, delinquencies of more than 90 days deteriorated sharply during this period. The segments hit hardest include gold loans, commercial vehicles, construction equipment and loans against property.

Volvo Fuelwatch Our Bureau

he falling rupee and rising fuel prices make business in the commercial vehicle industry very difficult. Saving fuel can provide considerable benefits so Volvo took it on itself to show customers how much savings can be achieved if its trucks are driven the right way by launching the ‘Fuelwatch’ competition in 2010. In its fourth year now, the competition’s aim is to acknowledge and reward drivers who are central to minimising fuel consumption. According to Volvo, the top three factors which affect fuel efficiency are driver development, fuel saving maintenance, and optimized specifications. Of the several techniques drivers can use to save fuel, Volvo says, use of cruise control, management of rev range in the green band and using engine braking are some of the essential techniques. The focus of the Fuelwatch competition was mining trucks, in which Volvo is the soughtafter brand in the CV industry. The Volvo FMX 440 and the FM 400 were the tippers of choice for the competition. Sixteen drivers were chosen from Volvo’s key customers in the mining industry and were given 19 km to drive at a coal mine in Chandrapur in Maharashtra. Using Volvo’s ‘Dynafleet’ trip management software, fuel consumption data was collected. The results showed a 24 percent variation between the 16 drivers proving that driving style can be an important factor in savings. According to a quick calculation by the Volvo Fuelwatch team, savings of up to 10 percent in fuel consumption can save some `2.72 crore a year. Volvo also has a driver training centre in Bangalore where it has trained 35,000 drivers since its inception.

Auto Monitor

RSB Transmission to establish technical centre Abhishek Parekh Mumbai

24 JUNE 2013

NEWS

The Jamshedpur-based group recently tied up with Fontain, a UK based design ﬁrm, for assistance in design and development of automotive couplings. “We are currently running with around 50 percent capacity. We would like to utilise the current downturn to enhance our competitiveness through process improvements, skill enhancement and product development and value engineering,” said Behera. He added that major contributor to the fall in the CV sales is ban on mining that has led to

SB Transmission is establishing a technical centre in Pune for product development and testing of automotive and industrial components and solutions. The centre, which has already commenced ‘preliminary’ work, is likely to begun full-ﬂedged operations by the end of this year. It employs 82 skilled and support staff that would be enhanced to 250-300 employees at full scale. “We are looking to build up competency in product development and testing and want to work with customers and enter into partnerships with global players. We want to make our technical centre as a centre of excellence comparable to best of its kind globally. This will not only help us expand our product offerings but also gain OEM conﬁdence,” said SK Behera, Director, RSB Transmissions. RSB Transmissions already has a technical collaboration with a German company for design and development of angular gearbox, couplings a nd t ra nsmission related components. SK Behera, Director, RSB Transmissions.

drastic slowdown in tipper off take. Proactive policy implementation by the government to kick start the infrastructure building process could play a role in truck sales recovery. According to him, the automotive sector may get a boost with the resumption of decision making process and that could take up to a year. “Tier II and III suppliers are in a much worse condition and the coming months would prove to be a test case for these suppliers to remain in the business,” Behera said. RSB Group garners around 33 to 35 percent of its turnover from the CV segment and Behera is not having an easy time. The company has already taken steps to de-risk its business model by kick starting gear box manufacturing for LCVs and pick-up trucks. It is also making efforts to provide solutions for components like axles, couplings and gear box components. The company has already made inroads into Argentina and Brazil and is eyeing Latin America and South East Asia. R SB Tr a n sm i s sion s might invest `320 crore including `80 crore for manufacturing castings as well as capacity expansion in transmissions and gear box manufacturing. It has 13 manufacturing facilities spread over seven locations in India.

From Sant’Agata With Love

utomobili La mborghini has launched a special edition supercar for India based on the LP5502. Christened ‘India Serie Speciale’ only six such cars will be built, of which one has already been sold. This Indiaedition Gallardo features stripes of the national tricolor running from the front to the rear engine cover. With a price tag of `3.06 crore (ex-showroom Maharashtra), the car is being offered in three colours, namely Arancio Borealis (Pearl Orange), Bianco Monocerus (White) and Verde Ithaca (Pearl Green). Only two cars will be made in each color. The India Serie Speciale LP550-2 gets the attractive Cordelia rims in silver ﬁnish as a standard ﬁtment. The interiors are feature a predominantly black colour theme. The stiching work on the driver’s seat is done with green colour threads while stiches on the passenger seat are in orange. The stitches on the doors, centre console and dash board feature the colour white. There is a plate near the driver’s side quarter glass plate proclaiming ‘India Serie Speciale’ to further signify its exclusive status. “On the occasion of the 50th Anniversary celebrations of Automobili Lamborghini, the India Limited Edition Gallardo LP550-2 is our tribute to the strong relations we share and continue to enjoy with India. The India Edition car represents a powerful and sophisticated

On the occasion of the 50th anniversary celebrations, the India Limited Edition Gallardo LP550-2 is our tribute to the strong relations we share and continue to enjoy with India. tribute from the House of the Raging Bull, symbolic of our common ethos in aspiring for perfection. The car reiterates our commitment to India and enthusiasts of Lamborghini,” said Pavan Shetty, Head of Operat ions, La mborghini India. Lamborghini had f irst revealed their plans to launch an India-speciﬁc special edition at the launch of their Aventador model in India. The main thought behind launching an Indian special edition Gallardo model was to mark its 50th anniversary celebrations. With a very limited number of cars slated for production, this LP550-2 edition is sure to be one super exclusive offering from the luxury supercar manufacturer to its Indian customers. Earlier Lamborghini had launched special edition cars for the Singapore, Malaysia, Indonesia, Hong Kong (20t h A nniversa r y Edition) and Japan (Bianco Rosso edition) markets.

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The new roar North India has always been attractive to auto players. And now when NCR looks like it might burst at the seams, along come schemes from the Punjab government to lure investors. Nabeel A Khan explores the options.

Courtesy: paultan.org

orth India has historically been ground zero for the automotive industry ever since manufacturing began. The country’s largest car manufacturer Maruti Suzuki India chose Gurgaon in Haryana to establish its ﬁrst plant, and attracted a large number of ancillary companies to the region. Later on, the Japanese automobile giant Honda Motor set up its twowheeler plant in Gurgaon, and a car plant in Noida. Currently, the region produces over 50 percent of the cars and 70 percent of twowheelers in India. Given the huge number of OEMs, there is a commensurate increase in the number of component manufacturers. Today, the automotive component industry based out of North India contributes around 60 percent of the total revenue of $40 billion. The region has earned the trust of the industry and there is little likelihood that this share may fall in the near future despite new emerging hubs like Gujarat. This is because manufacturers are gung-ho that volumes will rise. There are around 2 to 2.5 million cars and 15 millions two-wheelers. And these numbers will increase. Within north India, the industry has witnessed the emergence of a new hub after land acquisition became tough in NCR. Various state governments such as Himachal, Uttarakhand and Madhya Pradesh (Indore) offered tax beneﬁts and sops but

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this is now passé. As acquisition of land and other resources became scarce, the industry began looking elsewhere within the region. However, what has been easily available (and an advantage) is the easy availability of manpower – both skilled and shop ﬂoor workers, since it has the highest number of engineering colleges with Uttar Pradesh taking the lead. There is a silver lining here. The upcoming expansion of the Tapukara and Gurgaon-Jaipur Highway is going to be the best bet after Himachal and Madhya Pradesh. The Punjab government has revealed a new industrial policy that offers attractive relief in power tariff, among other things, to attract investors. Punjab, known for its farming prowess, is waiting in line and modulating policies to attract the industry. The state already has two small OEMs operating – ITML and ICML, and Swaraj Mazda, besides a handful of component makers in Jalandhar and Ludhiana. But the state has seen little action. The last OEM to have announced their intention to work out a feasible model for the northern region, especially Punjab, was Tata Motors. This came close on the heels of the government announcing its new policy to accelerate industrial activity in the state. Punjab Deputy Chief Minister Sukhbir Singh Badal unveiled the new policy for ﬁscal incentives for

industrial promotion in Punjab and described it as an aggressive, incentive based policy that would not only change the paradigm of industrial development but also facilitate investment. The biggest attraction of the policy was the offer of 100 percent exemption in Electricity Duty, Stamp Duty and Property Tax. The Minister said, “Punjab failed to attract investments from industry as it is a landlocked state that had tax haven hilly states as neighbours. Now we have taken proactive steps to facilitate investment by offering more incentives than any other

state. Besides assured surplus power, we have also announced 24-hour power to the IT industry, world-class infrastructure, a regulation-free regime, and selfattested proposals without any site veriﬁcation.” The New Industrial Policy focused on three points: incentives, simplifying procedures, and facilitation. For the manufacturing sector alone, the state has been divided into two zones. Zone I includes Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Bathinda, Sri Muktsar Sahib, Faridkot and all approved industrial parks. Zone II includes Patiala, Fatehgarh Sa hib, Lud hia na, Moga, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar and Ajitgarh (Mohali). Interested manufacturers need to bring in Fixed Capital Investment (FCI) from `1 to 10 crore and would be eligible for 50 percent VAT plus 75 percent CST retention for seven years. Units having FCI from `10 crore to 25 crore would be eligible for beneﬁts for eight years and those with FCI from `25 crore to 100 crore would be eligible for 60 percent VAT plus 75 percent CST retention with

Punjab failed to attract investments from industry as it is a landlocked state that had tax haven hilly states as neighbours. Now we have taken proactive steps to facilitate investment by offering more incentives than any other state: 24hour power to the IT industry, worldclass infrastructure, a regulation-free regime, and self-attested proposals without any site verification. maximum of 60 percent of FCI for 10 years, and so on. A new category of units with FCI above `500 crore has been created that would enjoy 80 percent of VAT incentive plus 75 percent of CST retention with maximum limit of 80 percent of FCI for 13 years. In addition these units would have 100 per-

Auto Expo, New Delhi

cent exemption in Electricty Duty, Stamp Duty and Property Tax. For industries in Zone II, units with FCI of `10-25 crore would enjoy 25 percent VAT plus 50 percent of CST retention for 8 years, units with FCI of `25-100 crore would have 30 percent of VAT and 50 percent of FCI for 10 years, units with FCI `100-500 crore would have 35 percent of VAT and 50 percent of CST retention for 11 years and units with FCI above 500 crore would enjoy 40 percent of VAT and 50 percent of CST retention for 13 years besides 50 percent exemption in electricity and stamp duty and property tax. It remains to be seen how well this goes with the industry. What is lacking is a port and tha makes export and import tough. Weather conditions are inclement too. The labour crisis seems to be toning down after Hero MotoCorp and MSIL concluded a settlement.

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Rockman expands Invests around `190 crore in two plants Nabeel A Khan New Delhi

he current slack in the auto industry is giving component companies new ideas to seek out success. Rockman Industries, a Hero Group company, is expanding production capacity to strengthen its presence in the Aftermarket as well as create capacity for future demand. The supplier of Aluminium Die Casting has set up a new plant in Ludhiana to produce two-wheeler chains at

an investment of `70 crore, and investment that does not include land. The plant spread across 10 acres started ﬁrst phase of operations a few months ago. Rockman was previously manufacturing the chain at its old premises where it also produces casting. The older plant will be totally dedicated for die cast production. The company mainly supplies to Hero MotoCorp. “Our view is that the sentiment is cautious, not negative. What is down today is likely to look up and meanwhile capacities need to be built to be able to

ride the growth when that happens. We are investing in capacity building for automotive chains and aluminium die castings for export and domestic customers. We expect some improvements in the second half coinciding with the festival seasons. A good monsoon could also improve sentiments,” said Suman Munjal Managing Director of Rockman. The company ventured into Aftermarket only last year and did business of about `40 crore and in the next 2-3 years expect to double it. Rockman’s total revenue last ﬁscal was `1,300 crore. Going

Rockman will dedicate its older plant for die cast production only.

Aftermarket is expected to garner a larger chunk of business for the company.

forward, Rockman wants to touch `2,100 crore by 2015-16.

The Bawal plant

Rockman Haridwar

In anot her expansion, Rockman is building a plant in Bawal near Gurgaon and commissioning is expected to happen in the next four months time for phase I production. Total investment in this plant is expected to around `120 crore by the ﬁnal third phase. The company will make aluminum cast components at the plant. “We want a pattern of continuous expansion. First phase production will start around

September, second phase in January, and third should go in June next year. We are seeking out new customers in the same line and four-wheelers,” Munjal added. The company has formed a network of dealers and wants more. Its limited capacity earlier prevented it from supporting the aftermarket. The expansions should soon change that. “We are vigorously working on efﬁciency and productivity improvements on all areas – be it man, materials, machinery or method. We expect a ﬁve percent growth in 2013-14,” he added.

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Keeping spirits high ACMA has always been at the forefront in terms of protecting the interests of component makers. However, considering the developments in the auto industry, the component manufacturers are going through a low phase. NK Minda, Chairman of ACMA (North region) speaks to Nabeel A Khan about how ACMA’s assistance is helping the component industry. be near to the customers.

As chairman of the North region for ACMA, can you tell us some of the speciﬁc concerns of component makers? We have programmes for various situations. What we are concentrating on now is improving the logistics and supply chain especially for tier-2 suppliers. This is one of our main programmes. As you have seen, we had a successful growth and carbon footprint programme. There are challenges of infrastructure ahead as far as this programme is concerned, such as availability of CNG gas stations and availability of charging points for EVs. We

have regular interactions with the government. Do you think there should be any kind of check on manufacturers looking at the western region specially Gujarat? No. It is common among component manufacturers from all regions to look elsewhere for business. Those who have the competency and capability are looking at Gujarat. Whatever region offers them bulk business face transportation problems, so they have to move. Volume components such as lighting, sheet metal, and plastic panels have to

What is the approximate contribution from North India to the total revenue of the automotive industry? Do you see revenue falling because of the new hubs coming up? The total size of the automotive component industry is about $40 billion in India; of this $9 billion is exports and about 60 percent of the rest comes from North India. This is because of the presence of Maruti Suzuki India, Honda and Hero MotoCorp. There is no question of this share falling because the volumes are going to increase and we already have around 2 to 2.5 million cars and 15 millions two-wheelers. These numbers are going to go up. While capacity generation is being utilized best, I see the next additional capacity generation taking place in the West or South. What are the challenges in setting up additional capacity in the North? Transportation is the main issue. And this is not conﬁned to auto component manufacturers because they just have to follow. I think the OEMs are making some moves because if they need to export then port vicinity is a must. It is easier to cater to

the requirements of Maharashtra and Gujarat rather than transporting the vehicles from North. Labour is a major challenge in the Gurgaon-Manesar belt. I think with the recent settlement by Hero MotoCorp the situation is better, and Maruti too has done well in terms of settlement last year. I think it is more of communication or rather education and their involvement along with their families and it is these initiatives that we are taking to make them part of the organization. We need to work jointly for the growth of the organization because if the company does not grow, no labour or union can grow. We have to make them part of our team and are working on this. Most component makers are under pressure and their workforce and resources are lying idle. How would you advice them? This is a temporary phase and we are taking the initiative of increasing productivity and improving quality. Then there are other aspects of reducing cost like improving energy efﬁciency, waste reduction and upgrading facilities. Is this a right time to acquire companies? Acquisition is not easy. There are new opportunities and this

requires some suppliers to go to the other end of the region. In acquisition, integration of business is important. How about the FTA with ASEAN? There must be a level playing field. If our cost of production is less than those countries then we don’t feel threatened. When I say level playing field, I mean that the availability of the raw material should be at the same price after subsidy – like in China where the price of aluminum is 50 percent cheaper than aluminates. Such issues hold us from being competitive as our raw material costs are higher. We are in regular talks with the Government through SIAM, ACMA and CII to look into this. We are also discussing imposing an anti-dumping duty that will give us a level playing field. What is your opinion about the increasing automation level considering the current scenario? Low-cost automation will definitely help. It will improve quality but labour costs are already low in India. Maybe in another five years, high cost automation will work. If we can balance automation and labour cost it might make sense.

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Warming up GNA Udyog is setting up a warm forging press facility, keeping its commitment to the market.

Nabeel A. Khan New Delhi

alandhar-based component manufacturer GNA Udyog Ltd is setting up a warm forging press facility to add a product lineup to its

precision forged products with a capacity enhancement of 40,000 tonnes annually. The facility has recently become operational and has started receiving SOPs for the same. The expansion has taken place based on plans the company had made. Going for-

ward, GNA Udyog is unwilling to make new plans considering the current situation. Moreover, with the lack of demand the company is utilizing only 20 percent of its capacity. “Currently the market is at the bottom of the curve. Due

to macro economic conditions there is much uncertainty about the time of revival. Owing to some data inputs, we have reduced investment and are looking to conserve cash,” said Maninder Singh Seehra, CEO & President, GNA Udyog Ltd. The new plant spread over 38,000 sq. ft. is expected to be fully utilized by 2016 and will cater to the demands coming from commercial vehicles and car manufacturers. The fullyautomated facility has attracted an investment of `25 crore intended to debottleneck the downstream processes through additional technolog y and achieve sales target of around `250 crore by 2016. The component maker, which envisaged growth projection of 33 percent last year, experi-

enced de-growth of one percent. However, this financial year it hopes to see revenue growth of around seven percent. The falling demand from OEMs is compelling the ancillary company to look at aftermarket. It is adding new product line up such as UJ crosses and propeller shaft parts and doubling its dealer network from around 78 to 150 dealers by the end of the year. Aftermarket contributed `13.5 crore last fiscal which is expected to nearly double by this fiscal year to `24 crore. In FY11-12 the company closed at Rs 115 crore achieving a growth of 12 percent whereas GNA Group turnover was `698.68 crore. In FY 12-13 the revenue of GNA Udyog fell to `107 crore experiencing a decline of around one percent.

Sonalika unveils heavy range tractor with AC cabin

Sonalika Worldtrac

onalika Group, one of the top four tractor manufacturers in India recently introduced its heavy range Worldtrac 90 hp tractor series with air-conditioned cabins. The cabin has both cooling and heating options, providing an all-season climate-controlled cabin equipped with a deluxe driver seat. Also featured are tilt and telescopic power steering and a four-cylinder turbo-charged 90 hp engine. Besides the improvements in fuel efﬁciency and power output in this model, the company is banking on the AC cabin in these tractors to contribute to customer interest. Kumar Bimal, VP Marketing, Sonalika Group commented, “At Sonalika, our endeavor is to provide maximum comfort to the farmers by introducing tractor models that is not only technologically superior but also improvise farming methods. It’s a widely believed fact that extreme weather conditions affect the morale of the farming community thereby plummeting the productivity levels. The AC facility can help farmers work comfortably. Likewise, the owners of this tractor will also possess the power to control the temperature in winter.” The Sonalika Worldtrac comes with 2,500 kg lift capacity and oil immersed brakes. The fuel capacity is 100 litres. The silencer is placed under the hood to give visibility to the operator. The driver’s cabin has a music system, and E-marked cabin glasses with rear/front wiper. The tractors are priced at `14,45,000, and will be sold through the company’s channel partners who will also provide after sales service and spares. Finance will be made available through major ﬁnancers.

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A patient man Maninder Singh Seehra, CEO & President, GNA Udyog Ltd, is a patient man. He knows that this is not the right time to make new investments. And he is willing to wait. What is your strategy to be more efficient in terms of profit margins? The company is looking towards automation, deskilling operations and conserving on efficiency through energy conservation. These are the major heads which are seeing inflationary pressure on profits. Alternatively we are looking at improving the RTY (Rolled Throughput Yield) of the products as well. How do you see the recovery of the Indian market? What kind of policy expectations do you have from the government? The recovery of the Indian market will be based on the monsoon as the it is the primary sector that drives consumption. There has to be a push on Government Stimulus on Mining and issues

What steps is ACMA taking to improve production quality of the smaller companies? ACMA is following a strong cluster approach to enhance capability building in organizations at the grass root levels. There is also a strong push in the form of QC Circle competitions and Six Sigma trainings. What innovations are taking place to replace heavier metal with plastic/engineered plastic? What are your plans for new plastic products? Lightweighting of products is a stage-wise process and in the ﬁrst phase we have unlocked value by redesigning the same products using FEA and part simulation and generate VA/VE on the same products. The move in transmission parts is more towards aluminum or high ten-

pertaining to that should be cleared at priority as it would push sales of commercial vehicles. This will also provide an impetus on restarting the infrastructure projects at a faster pace those that are on hold or have slowed down. If some kind of stimulus in the form of reduction on Indirect Taxes can be thought of it could be a shot in the arm to push sales in the short term. Are you planning to introduce products or have chalked out any diversiﬁcation plans? Given the market scenario we are waiting to launch new products that we have been working and are in the pipeline. But market conditions do not allow us to do so. We are waiting for the right time because timing is important when it comes to launch. However, we have taken steps to increase our presence in the Aftermarket business and believe that the market will provide us sustainable growth in the near future. Do you have any other expansion plans, organic or inorganic? Currently there are no such plans in the short term. However we are open to expansion in the long term. What kind of growth do you expect in India coming year? The current year GDP growth of 5 percent would a big achievement, whereas the industrial output would stay around 3 percent. What are the mega trends in the components industry? The megatrend in the automotive industry is lightweighting of components and improving on the yield of products being manufactured. Our company is working on both the aspects. We are improving the current product range which is focused on reducing the weight of the system as it would increase efﬁciency of vehicles and improve its NVH capabilities. On the manufacturing part, we are moving towards improving RTY of each process to minimize material wastage. Our newly installed warm forging press shop is an example of how serious our organization towards this objective. What potential do you see in exports? Exports should remain stable although the RFQ’s may increase. The gestation period of exports is higher. The current foreign exchange arbitrage that is available to us may not continue by the time the projects kick off. However, exports should continue to remain stable and there could be some degree of positive movement. What are the challenges faced by auto companies based in North India? The major challenge is availability of skilled manpower and increasing energy costs. This is reducing our competitive edge vis-à-vis other regions. There needs to be structural and concentrated efforts from the government if the region is to maintain its competitive edge.

sile alloys. Through our R&D cell we are working on prototypes of similar products but making changes is a long term effort. In a nutshell, we are moving towards more aluminum and high tensile alloys in our products. How has the last financial year been? How do you see the outlook for the next fiscal? The last financial year was challenging. It started with optimism but in the second half we saw a major reduction in volumes and closed last fiscal nearly flat. This financial year we would like to meet growth of 5-7 percent over previous years. In the current scenario, what kind of technical up-gradation and capability are you building to keep yourself relevant?

We feel that in the given set of conditions our company is committed to invest in world class processes that would set us apart from the competition. We are working at innovative automation solutions that will improve repeatability and productivity of the current processes and also generate bottomline for the organization.

Any new R&D investments? Investment in R&D is an ongoing process and for some time we have been investing close to 5 percent of revenue on R&D. Now with the reduced turnover, we have decreased our budget to 3.5 percent. However this will not affect the projects we have undertaken.

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‘We are a contracted industry’ Many factors make North India an ideal location for a component manufacturer. As many as half of all cars and more than two-thirds of two-wheelers are manufactured here: and proximity to OEMs is the biggest thing for components manufacturers, says Jayant Davar, Chairman of CII, Northern Region, and founder and Co-Chairman & Managing Director of Sandhar Technologies, in an interview with Nabeel A. Khan.

Recently the Competition Commission of India objected to car companies not allowing component makers to sell products directly in the aftermarket. What is your take on the matter? Where the OEMs provide the design of the product, the component makers don’t have the right to sell independently in the aftermarket. The OEMs come to the component makers and offer them the design and once they conﬁrm that they can produce it, the price is ﬁxed and eventually it’s the vehicle manufacturer who has the right to export or sell in the aftermarket. De facto, the contract with the component makers is only for outsourcing. OEMs often complain that Indian component makers don’t have any design and R&D capability… See, we did not have big opportunities in the past. We had only two carmakers and they were Hindustan Motor and Fiat. And we were 50 years behind in terms of technology and legislation. India did have the knowledge. In the early 90s liberalisation happened and manufacturing began. Initially the companies were manufacturing only a few components and it took around 10-12 years to understand manu-

facturing. Since 2002-04, we have better design capability but it is taking us time. Why do we always look for foreign collaboration to improve engineering capability when we have good talent here? It is not that we don’t have talent. We don’t have the data. When a buyer comes, he gives us the design and we start production. We get so involved that we don’t have time to go to the next level. Suppose we made locks for Honda for ten years. We have to know the problems we faced and improve on them. If we did not keep the data, then we may not be able to improve on them. Second is that we have a lot of talent but the number of people in R&D are few. We produce around 9,000 engineers but few of them go in for research, and even then there are few opportunities. The government has not done much. Corporates don’t seem too serious about R&D, although the average investment needed would be less one percent. And there’s the PPP model as well. Why do corporates not walk the talk? This is not about walking the talk. There are commercial reasons. If you outsource, then you

are producing in such a way as to be cost-competitive against your competition. As all the components are designed by the customer, how much will you earn to enable you to invest in R&D? We are a contracted industry and we produce on the outsourcing contract. What is the ideal support that you expect from the government to enhance R&D? I don’t think the government is at fault here. We have a department of science and technology which has been supporting the industry and a number of projects are being done on the PPP model. What is required is a mindset change. The easiest example that I can give is how people who score well in school and college don’t want to become teachers. Despite this, the government has been kind now, and has increased remuneration for teachers so there has been some interest. It’s the same with R&D. Can you tell us about the advantages and disadvantages of being based in North India? One of the biggest beneﬁts is that this region produces more than 50 percent of cars and more than 70 percent of two-wheelers. So the region offers the biggest

market in the country. For a components company, the biggest thing is being close to the customer, and here we have the biggest customers, for example MSIL. If you look at Haryana, Noida and NCR as a whole, it has access to good infrastructure being close to the national capital. You will also notice that states such as Uttar Pradesh have the highest number of engineering colleges and they generate the maximum graduates. So the attrition rate is less here. As for disadvantages, it has to be the weather: it gets too hot and too cold in some areas. Power supply is also a big issue. Policies are the same every where. Sops were being offered by Himachal Pradesh

and Madhya Pradesh, and now Punjab is offering certain beneﬁts. In Indore, people moved when sops were offered, but logistics is a issue because it’s away from the coast. I believe that Gurgaon and Rajasthan will be the next big hubs for the auto industry. Tata Motors is planning to get into Punjab and if that happens then lots of companies will move there. In my opinion, Himachal and Uttaranchal will not grow because they offered sops and people went there, but now there is no such thing and so there are no incentives to be there. There are no major customers there either. A lot more investment will go into the Tapukara and Rajasthan areas.

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Sandhar ties up with Lyssen

Nabeel A. Khan New Delhi

andhar Technologies Ltd., a diversiﬁed auto component manufacturing company, has signed a technical collaboration with Lyssen Enterprises Co. Ltd. for manufacturing instrument cluster, case gauges and senders. Sandhar will put up production lines for instrument clusters and senders initially at its Gurgaon plant, and then go on to add locations. “I am delighted to announce this collaboration with Lyssen Enterprises. Lyssen is a recognized player in customized instrument clusters, case gauges and senders. This relationship with Lyssen will help us to offer latest technology

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Sandhar will put up production lines for instrument clusters and senders initially at its Gurgaon plant, and then go on to add locations. and aesthetics to the automotive industry,” said Jayant Davar, Founder, Co-Chairman & Managing Director, Sandhar Group. Paul Liu, Chairman, Lyssen Enterprises Co. Ltd. said that the company has been working with customers in Europe, US, Japan,

Hedging bets Jayant Davar, Founder, Co-Chairman & Managing Director, Sandhar Group Strategy, tells Nabeel A Khan about how the company hedges its losses in market that is stagnant. A technical alliance rather than getting into direct JV and not acquisition? It’s a nice way to get acquainted. Both our technical collaborations – JEM and now Lyssen - happened at the same time and both these companies did not have a presence in India. They want a share in the growing market of India. We have not changed our strategy because of the looming slowdown. What we see is a short blip. The population of vehicle per capita is small and motorization has to take place. I don’t think there is any such threat to change plans. Business strategies are derived well in advance at least 4 to 5 years. We are cutting down on some planned investments. Our sales last year grew by 10 percent and this month we grew by 4 percent. We consider ourselves a hedged company which means that our customers are divided in different segments of

business. About 30 percent of our business comes from two-wheeler, 18 percent from four wheelers, 14 percent from buses, and the rest from off road vehicles. Another strategy is that the components we make there is a constant effort to increase the product range. Within an existing product range, if we manage to achieve a growth it means new business. Suppose an OEM manufactures 100 pieces, and if that falls, we look at increasing business from another OEM. Our operations are distributed across different OEMs. If Maruti Suzuki reduces production numbers, it might commensurate with an increase to Honda who has been growing. Such hedges helps us grow and not cut down on production. We are looking at 100 percent growth which will come from new models and additional products for the existing products. We were doing around

China and Taiwan. But somehow had not reached India. This relationship with Sandhar would help them to bring their expertise to India. The company is looking forward to seeing its designs on Indian vehicles. Lyssen Enterprises was founded in 1975 and is located

in Taoyuan, Taiwan. It specializes in customized instrument cluster, case gauges and senders for automotive, agricultural machinery, generators, ATV, EV, marine and special purpose vehicles. Lyssen’s R&D team has excelled in developing a range of proprietary technologies and

350 vehicles per day for Honda cars and from this month we have increased it to 450. By November we are looking at 650 units per day. The company supplies locks, door trims, etc. Is the cost factor keeping you away from entering alloy wheels despite the fact that you can easily diversify and also have a future?

We already supply steel wheels but are not getting into alloy wheels. There is much volatility in the global prices of aluminum, and China is way ahead in this. The smallest plant in China would manufacture five times of what we do. Moreover, manufacturers prefer imported aluminium. provides consultancy services in specialized areas of instrumentation industry. Lyssen has obtained over 100 patents in the Taiwan, US, Germany, China, Mexico, Italy, Spain, Japan and UK. Other than Taiwan they supply to customers in Europe, US, Japan and South East Asia etc.

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Some new products by Henkel Adhesives

Volvo Sustainable Mobility Award 2013

enkel Engine Lacquer is a high temperature resistance coating for engines and protects engine surface from contamination, weathering and rubbing effects. Anti-Rust Exhaust Coat shields exhaust surface from deterioration under high temperature. Weld through primer provides long-term protection against corrosion, rust and is salt water-resistant. It withstands temperatures up to 25oC. The product forms protective coating without ﬂaking. Belt dresser improves transmission efficiency and protects them from weathering effects. The usage of belt dressers prevents slippage and ultimately increases belt life and performance. This product is used for cleaning and protecting drive belt made of rubber, leather or synthetic materials. Henkel’s Tyre Shine cleans and protects tyre side walls leaving long lasting new-look sheen. It shields the rubber parts from

Belt Dresser

Belt dresser improves transmission efficiency and protects them from weathering effects. The usage of belt dressers prevents slippage and ultimately increases belt life and performance. weathering effects and maintains suppleness. These are Aerosol products and finds major application in vehicle maintenance and cleaning. Loctite Super Flex 24 silicone

Weld Through Primer

is one Component R.T vulcanizing sealant which finds it major application in RTV sealant for automotive aftermarket (Vehicle Repair Market). It is specially formulated to meet the Engine oil pan sealant requirements of the automotive industry. Due to its excellent flexibility, it is Suitable for Automotive oil sump sealing, timing belt cover sealing etc. This product with extrusion rate of 200-600 g/min and tack free time of 10-20 min provides excellent engine and gear oil resistance. This silicone product bonds well with many substrates including most of plastics. Adding to its benefits, it does not emit acetic acid which causes corrosion to iron, copper, etc.

olvo Buses in India is inviting entries for the third edition of the Volvo Sustainable Mobility Award. Instituted in 2011, the Volvo Sustainable Mobility Award aims to reward progressive and practical action in the area of promoting sustainable solutions in urban mobility. The 2012 awards were bagged by EMBARQ India and Indian Urban Space Foundation, with Praja as runner-up. The Volvo Sustainable Mobility Award carries a prize money of `1 million, which includes a ﬁrst prize of `7,00,000 and `3,00,000 for the runner-

Networked cars?

Anti-Rust Exhaust Coat

Engine Lacquer

up. Registrations for the award have started and the deadline for this is August 31, 2013. The Volvo Susta inable Mobility Award has been instituted to recognise outstanding efforts in the broad area of sustainability. It also seeks to award practical action and engagement with society in this regard. The previous editions attracted a wide range of subjects ranging from efforts to streamline bus services on key traffic corridors to urban pla nning t hat addressed issues like city road planning to promoting commuter rail as an alternative for people to commute.

ehicles and other infrastructure exchanging information with one another and notifying drivers about dangers and traffic situations make traffic safer and more efficient. This has been proven by one of the biggest field tests ever conducted on ‘car-to-x communication’, as it is known. Companies, research institutes and public institutions tested the jointly developed simTD system using 500 test drivers in moving traffic. Scientists at the Technische Universität München (TUM) simulated the effects on traffic if all vehicles were fitted with the technology. The first function to be implemented, as of

2015. The system, developed within the framework of the simTD (Safe Intelligent Mobility – Test Field Germany) project, links vehicles and infrastructure electronically. Using specially developed radio technology, based on the WLAN standard, they exchange information directly among themselves. Drivers with simTD technology equipped vehicles are in a better position for anticipatory driving. For one thing, they can view a display offering them suggestions for the best route to take and recommendations such as the optimum speed needed to ride a ‘green wave’ (a succession of green trafﬁc lights along a stretch of road).

Auto Monitor

24 JUNE 2013

NEWS

Daimler exports ﬁrst batch of Fuso trucks to Sri Lanka

a im ler India Commercial Vehicles Pvt. Ltd (DICV), a 100 percent wholly owned subsidiary of Daimler AG, has exported the ﬁrst lot of 64 Fuso trucks manufactured at its Oragadam Plant. The trucks were exported to Sri Lanka. The new Fuso range of trucks were launched on 23 May 2013 by DICV and DICV group company Mitsubishi Fuso Truck and Bus Corporation, at DICV’s plant at Oragadam, near Chennai.

The quality standards at our state-of-the-art plant in Chennai combined with the quality of parts from Indian suppliers has made this possible. Marc Llistosella – Managing Director & CEO, DICV said, “The export of the ﬁrst Fuso trucks to

Srilanka is a realisation of our promise to export from DICV, Chennai. The quality standards at our state-of-the-art plant in Chennai combined with the quality of parts from Indian suppliers has made this possible. Going forward, more trucks will be exported to other Asian and African markets.” The FUSO trucks range manufactured at DICV‘s Oragadam plant comprise ﬁve models spanning the medium and heavy duty (25 – 49 tonnes) range.

Ford EcoSport shipments begin Tata Motors Announces

ord EcoSports are rolling off the production line in Chennai and are being shipped to Ford dealers throughout India. “The EcoSport looks fantastic,” said Ford president and Chief Executive Ofﬁcer Alan Mulally, who is in Chennai to congratulate the employees. “The Chennai team, together with our supplier partners, have done an outstanding job in delivering our customers a great looking, fuel-efficient, safe, compact utility vehicle with impressive functionality and connectivity, at a very affordable price.” Ford India’s Chennai facility is the third of ﬁve plants globally where the Ford EcoSport will be produced. Currently it is being produced in Ca mac a r i, Br a z i l a nd

Chongqing, China (Changan Ford JV), with production to start subsequently at Rayong, Thailand and Tatarstan, Russia (Ford Sollers JV). The Ford EcoSport is an all-new urban compact SUV developed to serve customers looking for a vehicle that offers capability, value and fuel efficiency. “The EcoSport is a great example of Ford’s leadership in the global shift to fuel-efficient and functional utility vehicles,” said Dave Schoch, president of Ford Asia Pacific. “Utilities are helping drive our expansion throughout the region, particularly in emerging markets, where growth in the utility segments is exploding.” According to IHS Automotive, global small utility vehicle sales grew 154 percent between 2005 and 2012. In the coming years,

Horizonext Ford India’s Chennai facility is the third of five plants globally where the Ford EcoSport will be produced. small utilities sales are expected to increase by 51 percent globally. Ford small utility sales are projected to outpace the overall industry, according to IHS Automotive. As part of the One Ford plan, the Ford EcoSport is based on the company’s B-platform, which also underpins its Fiesta model. The company will produce two million vehicles annually on its B-platform by 2015.

ata Motors have announced Horizonext, a product and marketing strategy for its passenger vehicles business which involves offering upgraded versions of existing vehicles. The company unveiled eight improved and enhanced versions of its vehicles across ﬁve of its brands, with the promise of more to come. These include the Tata Indigo eCS, the Tata Sumo Gold, the Tata Nano and the Tata Indica, with the enhancement being new colours and graphic designs, enhanced exteriors, improved suspension, multimedia entertainment options and introduction of the feather-shift gearbox (F-shift gearbox). The company also

showcased its new CNG range – Tata Indica CNG, Tata Indigo CNG and Tata Nano CNG – and the Explorer Edition of the Tata Safari Storme. Karl Slym, MD, Tata Motors, said, “While the Indian automobile market has become intensely competitive, our goal is to enhance our market leadership in commercial vehicles and move to a strong podium ﬁnish in the passenger vehicle market. Horizonext is the next step in line with the company’s mission to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally. We are igniting that passion so that customers stay central to us, in our products, dealerships, and in servicing their vehicles.”

Auto Monitor

Domestic 2W volumes to remain ﬂat in 2013-14

ICRA expects the domestic 2W industry volumes to remain ﬂat in 2013-14 as demand slowdown as well as base effect catches up with the industry that has demonstrated a healthy volume expansion over the last three years at a cumulative annual growth rate (CAGR) of 13.8%.

ver the medium term, the 2W industry is expected to report a volume CAGR of 8-9% to reach a size of 21-22 million units (domestic + exports) by 2016-17 (our longer-term growth forecast remains at 9-11%). ICRA believes the various structural positives associated with the

24 JUNE 2013

REPORT

domestic 2W industry including favourable demographic proﬁle, moderate 2W penetration levels (in relation to several other emerging markets), under developed public transport system, growing urbanization, strong replacement demand and moderate share of ﬁnanced purchases remain intact; as also the large opportunity available to grow presence in overseas markets, mainly Africa and Latin America.

Domestic volume growth in 2012-13 slowest The domestic two-wheeler (2W) industry recorded sales volumes of 13.8 million units in 2012-13, a growth of 2.9% over the previous year. This pace of expansion was signiﬁcantly slower than the 13.7% volume CAGR posted by the industry in the last ﬁve years. In the past, India’s per capita real GDP growth at 8.6% (CAGR) over the six year period 2005-2011 had contributed substantially towards raising

the standard of living of households, which in turn had been one of the key drivers of growth for the country’s automobile industry. But over 2011-12 and 2012-13, inflationary conditions, firm interest rates, rising petrol prices as well as weak monsoons adversely impacted disposable incomes causing a consumption squeeze. Over the long term, the trend in rising 2W penetration in households in the addressable income segment (already reached around 80%) is an added concern implying difficulty in sustaining penetration-driven growth over an extended time horizon. For the domestic 2W industry to revert closer to its historical growth trend line any time soon, the pie of total number of target households will need to expand. This in turn would depend on the pace of India’s economic growth recovery that could (a) boost personal disposable incomes and resultant consumption growth, (b) pull up

the un-penetrated households from a low income segment to the next higher income segment, (c) further enable increase in the number multiple twowheeler households, enabling penetration supported rise in 2W demand.

Weak exports growth Even on the exports front, the year 2012-13 was a period of weak growth for the industry with volumes at 2.0 million units declining by 0.7% over the previous year. This was consequent to a hike in interest rated in several countries, increase in import duty in Sri Lanka, trade restrictions imposed by Argentina, dollar sales embargo with Iran and ban imposed on motorcycle taxis in Nigeria. This apart, the reduction in incentives available to 2W exporters, twice over the last 18 months, has persuaded Indian 2W OEMs to partially hike product prices in overseas markets, further contributing to pressure on sales volumes. The Indian OEMs on their part are taking measures such as introduction of warranties (an uncommon industry practice in several markets), providing of better training to mechanics and appointment of sub-dealers, besides chalking out an entry strategy into new

markets as a de-risking approach. From a medium term perspective, 2W exports continue to present a strong opportunity for industry participants particularly to countries in Africa and Latin America that have low 2W penetration, inadequate public transport infrastructure and adequate scope for both secular as well as market share gain-led growth. In select countries, 2W OEMs in India may also have to budget investments in local assembly/manufacturing units to exercise better control over demand-supply, branding, back-end infrastructure, currency risk, besides other tariff and other non-tariff hurdles.

Industry maintains pricing discipline Amidst an environment of slackening demand, the 2W OEMs continue to shy away from offering discounts but on the contrary have undertaken two price increases in the last six months – price increase of Rs. 300-4,000 undertaken in October 2012 and a further price increase of Rs. 500-1,500 undertaken in April 2013. Although select OEMs while launching new products have followed a penetrative pricing strategy, the ‘discounts’ lingo has remained amiss, unlike the passenger vehi-

cle industry. Nevertheless, the 2W OEMs have been resorting to other forms of supply-side push in the form of attractive ﬁnancing schemes, discounts on insurance for limited period etc. The OEMs had generally not resorted to these latter set of tools in 2009-10, 2010-11 and 2011-12 and their return to use as a promotional lever is indicative of the weak demand conditions. The last year and a half has been marked by greater traction in new product launches and focus on expansion of customer touch points by most 2W OEMs. In terms of market share, while Hero MotoCorp continues to remain the distant leader with a share of 42.9% in 2012-13, it saw its share erode by 221 basis points (bps) over the previous year. A large part of this market share set-back was caused by weakness in Hero MotoCorp’s sales volumes in the 100cc segment, even as the OEM expanded its market share in some of the other segments like the relatively faster growing scooters segment and the 125cc segment of bikes, by virtue of new product launches. The other two leading Indian OEMs too, namely, Bajaj Auto and TVS Motor experienced decline in their respective share in the domestic 2W market in 2012-13. Honda, however, continued to demonstrate steady gains in market share across the board and strengthened its market share from 14.9% in 2011-12 to 18.9% in 2012-13. Over the next two years, a large number of new models are likely to be introduced by various 2W OEMs across segments. This, in an environment of weak domestic demand, is likely to make the OEMs’ quest to expand volumes be accompanied by pressure on proﬁtability.

Tepid demand for 100cc motorcycles weighs down industry growth The deceleration in volume growth of the domestic 2W industry in 2012-13 was largely attributable to the motorcycles segment which grew by 0.1% over the previous year; even as the scooters segment posted 14.2% YoY expansion during this period, albeit on a smaller base. With this, the share of the scooters segment in the domestic 2W industry volumes increased to 21.2% in 2012-13 from 17.5% in 2010-11. Within the motorcycles segment, while the entry and executive segments comprising of 100cc bikes and the premium segment comprising of t150cc bikes experienced anaemic demand, the 125cc segment (contribution of 20% to domestic motorcycle sales in 2012-13) was a positive outlier recording a volume growth of 26.0% in 2012-13, beneﬁtting both from new model launches as also the trend in uptrading and down-trading from the respective lower and upper price/performance segments. Also, relatively low volume segments such as the niche occupied by Eicher Motors (Royal Enﬁeld), besides other cruiser and superbikes from the stable of Harley Davidson, Kawasaki, Honda and Suzuki witnessed a strong growth in 2012-13, albeit on a low base.

Auto Monitor

24 JUNE 2013

NEWS

DSM’s Arnite : A compound for nextgeneration auto mirror actuators

ne of the world’s leading suppliers of automotive microactuator systems for various kinds of adjustments has chosen Arnite® A, a high performance compound based on polyethylene terephthalate (PET) from DSM for use in its latest generation of exterior mirror adjustment units. The material outperformed several rivals in a series of qualiﬁcation tests. Magna Auteca required a replacement for PBT, which improved the durability performance for this new application. As a result of this, the company looked at a wide range of compounds based on different engineering thermoplastics. The validation period at Magna Auteca lasted over a year, during which time the company put the materials through a wide range of tests. Magna Auteca, located in Weiz, Austria, has now selected

Arnite AV2 370XT, a 35 percent glass reinforced PET speciﬁcally intended for applications with extremely narrow tolerances. The adjustment unit, code-named MR5, will ﬁrst appear on the latest version of the Porsche 911. “Arnite XT outperformed PBT, PA66, PPA and competitive PET products on every single test, due mainly to its high dimensional stability, high stiffness and strength, and excellent wear and friction properties,” says Michael Kleinhappl, Design Engineer at Magna Auteca. He adds “in addition to providing a top-quality material, DSM also provided best-in-class support throughout the entire application development phase”. “This is a major success for DSM and for Arnite A,” says Andreas Weinmann, Account Manager at DSM. “Magna Auteca is a trendsetter for next generations mirror adjustment units with reduced weight and

DSM’s family of Arnite XT grades offer good dimensional stability due to its low moisture absorption and a low coefficient of linear thermal expansion (CLTE) that is comparable to aluminium. improved quality. We expect the competition will follow Magna shortly, and we are looking forward working with them too!” DSM’s family of Arnite XT grades all offer extremely good dimensional stability due to its low moisture absorption and a very low and constant coefﬁcient of linear thermal expansion (CLTE) that is comparable to aluminum. Arnite XT tolerates

a wide range of temperatures and environmental conditions, including chemical exposure. DSM is able to produce Arnite XT to very narrow specifications (glass fiber content, for example, is specified to 35.0 +/- 1.0% ver-

sus a minimum 2.0% margin in competitive products), ensuring an unprecedented consistency from batch to batch to fulﬁll the demanding requirements for high performance precision parts.

Tata Motors signs up for NSDC

Product Validation Solutions | Transient Solutions | Turnkey Solutions

ENERGY SAVING

: iASYS Technology Solutions Pvt. Ltd.

ata Motors has become the first automobile company to sign a memorandum of understanding (MoU) with the NSDC (National Skill Development Corporation) under the PM’s Udaan Scheme, through its Tata Motors Certified Works Manager programme. The MoU will explore training and employment opportunities for graduates, post-graduates, three-year engineering diploma holders and professional degree holders in Jammu & Kashmir through a collaborative action-oriented agenda. Recruiting fresh graduates from the engineering colleges of Jammu & Kashmir, the Tata Motors Certified Works Manager Scheme will provide skilled youth with employment opportunities across Tata Authorised Service Stations (TASS). Trained by Tata Motors for six months at NITTR Bhopal / Amity Noida and at Tata Motors’ STC (Service Training Centres), these graduates are then placed at Tata Motors dealerships as Assistant Works Managers. Sanjeev Garg, Global Head – Customer Care at Tata Motors said, “The move to collaborate with NSDC under the Udaan scheme is to create employment opportunities for the educated youth of J&K by providing them with skilful practical knowledge of vehicle operations and service. The scheme also enables us to plug in this trained youth into our commercial vehicle network, helping us sustain our service levels.” Dilip Chenoy, CEO & MD, NSDC said, “We are delighted to work with Tata Motors in ensuring NSDC’s aim of contributing significantly (about 30 per cent) to the target of skilling and up-skilling 500 million people in India by 2022. The Udaan programme is one of the premier programs in the country that focuses on equitable opportunities for the youth of J&K, through a well-structured skill development program. Tata Motors Certified Works Manager scheme promises to provide employment to thousands of youth in J&K.” Udaan is a special industry initiative for J&K, envisaged as an industry-led programme wherein corporations will tap into the large pool of educated youth in J&K and provide them training to make them employment ready. Udaan has mandated NSDC to work with the corporate sector in the state of Jammu and Kashmir, benefiting about forty thousand graduates, post-graduates, and diploma and professional degree holders, over five years. NSDC currently has 33 business corporations enrolled under their scheme, including Infosys, TCS, Wipro, HCL Technologies, Yes Bank, Apollo Tyres, the Future Group and Bajaj Allianz.

Auto Monitor

24 JUNE 2013

I C T A D VA N C E S

The connected car Andrew Milroy

he nexus of cloud computing, high speed mobile networks, big data and ‘The Internet of Things’ is creating huge opportunities to transform entire industries. From the healthcare industry to the automotive industry, we are on the brink of a surge in innovation, driven by information and communication technology (ICT) advances. Organizations no longer view ICT as a way of increasing productivity and improving existing business processes. Instead, ICT is increasingly perceived as a platform for rapid innovation and the key to successful competitive differentiation and growth. Over the next few years, some industries will become unrecognizable as cloud, mobile, big data and the ‘Internet of Things’ transform them entirely. So what does all this mean and what are the implications for the IT industry? To answer this question, each industry needs to be analyzed separately. One industry that is currently receiving a lot of attention from technology vendors is the automotive industry. Today’s cars are turning into computers on wheels. Already, autonomous or driverless cars can now be used. But what is the appeal of such an innovation? The answer is that

driverless cars can minimize accidents, reduce congestion and reduce vehicle carbon emissions, while enhancing the overall customer experience for most people. We can expect to witness a very rapid evolution of the cars that we drive today into autonomous cars. Over the next few years, we will increasingly drive connected cars that have the following IT-enabled features: Information and entertainment to the dashboard. Streamed audio and video entertainment, games and access to communications applications will become common in new models. Additionally, information relating to trafﬁc, parking and weather will be fed directly to vehicle dashboards. Navigation and driver assistance. Cars will be able to select the best routes in real time, taking into account current conditions as well as assisting drivers as they perform maneuvers For example, cars will increasingly have the ability to park themselves. Safety. Connected cars will have the ability restrict speeding, keep a safe distance from other vehicles, predict potential accidents and take avoidance measures, prevent red light jumping and other motoring violations. New cars in Europe will have the capability to instantly notify the emergency services of accidents, and roadside assis-

tance of breakdowns. Security. Once a vehicle theft has been recorded, connected cars will be easy to recover through real time GPS tracking. Energy efficiency. Intelligent navigation, routing and monitoring of driving style, fuel consumption, emissions and ‘wear and tear’ can be managed effectively. Usage based insurance. Polices can become usage based and linked to the distance driven by individuals and where and how those individuals drive. Technology firms are currently investing heavily in connected cars. One of the key reasons is a desire to control automotive IT platforms. Whoever controls driverless car platforms will be in a very strong position. They will be able to establish a communications system for driverless cars. Roads will carry more traffic and be safer and personalized transport will become typical. It will be an enjoyable experience. Cars will deliver you to your home or workplace and park themselves. Onboard, you will be able to work or access entertainment. Accidents will be virtually eliminated and cars will consume substantially less energy. Ultimately, insurance rates will fall dramatically and some mass transit systems may gradually be replaced by personalized transportation run from a common network. It is the IT industry

that will enable this transformation and reap huge rewards in the new automotive paradigm. Translated into IT terminology, this creates massive opportunities for providers of high speed networks, cloud computing vendors and analytics software vendors. According to LMC Automotive, global automotive sales exceeded 80 million in 2012 and will grow to 83 million in 2013. In the next few years, this will represent 100 million complex computing devices that can connect to the cloud over mobile networks. Vehicles will contain networking hardware, infrastructure software, software applications, and analytics software. This is a multibillion dollar opportunity for existing IT companies. It also offers opportunities for innovation which will drive the emergence of new technology ﬁrms. Microsoft and Google are working closely with major manufacturers to offer connected car platforms. Microsoft is working with Toyota to use Azure as a cloud based mobility platform. Google Is working with Ford to offer a cloud-based platform that offers a variety of features includ-

ing suggestions of optimized driving routes. IT vendors are benefitting from a shift away from proprietary systems to modular cloud based offerings typically provided by IT vendors such as Google, Saleforce.com. Microsoft, IBM and Amazon. These offerings massively reduce development time and costs for automotive manufacturers. Perhaps even more importantly, they can also be integrated to the broader automotive ecosystem. This would be very challenging or impossible if proprietary systems developed by automotive ﬁrms are used. In summary, the automotive industry is rapidly incorporating additional automation into vehicles. As IT ﬁrms get more heavily involved, this process will accelerate. In our old age, we may well look back with amazement at the fact that individuals were given so much control of cars. We may ask why we tolerated such high accident rates, such high levels of congestion, and rampant pollution generated by cars. The author is Vice-President, Frost & Sullivan - Information & Communication Technologies.

Welcome to Telematics 3.0 where Customer is King! Praveen Chandrasekar

rea l ly i nterest i ng recent announcement that laid down a few future direction points for me is the Delphi Verizon announcement on a aftermarket OBD II DIY kit coupled with a smartphone app. A $250 Delphi adapter with a $35 activation/installation fee that goes into the OBD II (DIY) is the upfront cost with a $5 non-contract based fee for customers to get access to a variety of features and services that can be activated through their smart-

phone. The idea is to mimick something like an OnStar RemoteLink app and add some valuable services on top of that but at much lesser cost with no contract hassles. The idea is to use Verizon’s network to push a 2 way cloud to the customer accessing data from the OBDII to enable a variety of services: z Geo fencing z Vehicle health reports and maintanence alerts z Real time vehicle performance monitoring (active diagnostics, since the plug in is into OBDII Delphi has the capability to understand basic error codes and their interpration from OEMs who

share atleast a bit for this) A host of remote convenience - locking/Unlocking, etc from the smartphone through a 2-way cloud The entire idea here is to offer a choice to customer in a market like US where OEM telematics domination has been high - not to say they have been successful but where they have subsidized a lot of the costs in anticipation of great returns. Even a program like OnStar which has been around for such a long time has been far from successful and this is because consumers hardly stick to the program after the free trial and max 1 year post free trial period z

(GM Claims a 40% renewal rate after free 1 year trial). A choice from the aftermarket can possibly peacefully co-exist with these OEM offerings but the biggest problem is these AM DIY offerings have to wait till a car becomes atleast 2 years old because atleast 70% new cars in the US come lineﬁtted with telematics offerings. The other major challenge is for aftermarket companies to gain access to vehicle data beyond the usual GPS, triangulation, vehicle speed and gyro data and how a licensing agreement will work with OEMs to gain access to this data at a time when OEMs are ever pro-

tective of this level of sensitive OBDII data. Given all this there is deﬁnitely more interest from other companies like TRW to get into this game which adds clear value. Audiovox offers a similar DIY solution in the US market but clearly these are early days. Frost & Sullivan believes that given about 150 million cars running on the road there is massive potential for such aftermarket offerings but the key issue here is not technology or services, its how you take it to the customers = BUSINESS MODEL!!!! The author is Research Manager, Frost & Sullivan, Automotive & Transportation.

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Auto Monitor

GLOBAL NEWS

New Renault trucks aim at being proﬁt centres for customers

PSA grows twice as fast as the market in China

nveiled in Lyon on 11 June, the manufacturer revealed its new product range to an audience of 6,000 people from the motor transport industry. This renewal has been the object of an investment by the Volvo Group of over 2 billion euros and the most stringent testing Renault Trucks has ever carried out in its entire history. The aim is clear: to supply its customers with a perfect, reliable and highperformance tool which will allow them to keep their costs under control. More than ever,

Renault Trucks considers a truck to be a proﬁt centre which should never let customers down, make its drivers proud and protect the business of operators.

Solid moves This is the ﬁrst time that any manufacturer has ever renewed its entire range at a single stroke. The Volvo Group made an investment of 2 billion euros to the project and Renault Trucks carried out the most stringent testing programme of its entire history. Quality and reliability evolves

over many hours of testing and research. Since 2008, this process has led to 300 vehicles covering 10 million kilometres in quality tests, plus 5 million additional hours of bench tests at temperatures ranging from -40°C to +60°C. Designed and developed in close association with 50 international customers, the new range aims to give users the perfect tool for their assignments. Renault Trucks is offering a new range of vehicles for long distance, construction and distribution applications.

fter an excellent ﬁrst-quarter 2013, when sales rose 31 percent year-on-year to 142,000 vehicles in a market up 17.5 percent, PSA Peugeot Citroën is continuing to drive faster sales growth in China, the world’s leading automotive

market. In May 2013, the DPCA joint venture with Chinese car manufacturer Dongfeng sold 46,134 vehicles, representing a year-on-year increase of 31 percent. Over the same period, the Chinese market grew by 12.4 percent. This record sales performance corresponds to a market share of nearly 4 percent. Over the first five months of the year, DPCA’s sales rose by more than 32 percent to 232,960 units compared with the same period in 2012, whereas the Chinese market advanced by 16.4 percent. The Citroën C4L already generated more than 15,000 billings in the first five months, even though the major 1.8-litre version was only launched in May. The Peugeot 3008 has also proven very popular, with over 21,000 billings recorded in the five-month period. These results also reflect the achievements of the China Tech Centre, the Group’s Shanghai-based R&D and design laboratory, which notably came up with the styling for the Citroën C4L and adapted the Peugeot 3008’s design to the specific expectations of Chinese car buyers. Aiming for a market share of 5 percent in 2015, DPCA will launch two new local models in the second half of 2013, the Citroën C-Elysée and the Peugeot 301. They will be manufactured at the third Wuhan plant, which will be inaugurated this summer. In addition, the CAPSA joint venture with Changan will begin local production of the Citroën DS5 in the second half of 2013 at the Shenzhen facility, which will offer capacity of 200,000 vehicles per year at full operation.

Citroën C-Elysée

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24 JUNE 2013

IMPRINT

Portable multi-angle spectrophotometer CM-512m3A

ISL represents Japan-based Konica Minolta (KM) in India. Konica Minolta CM-512m3A is a portable multi-angle spectrophotometer especially designed for colour measurement of metallic and effect paints and plastics.

Why have cars recently become so beautiful? There are four reasons: You’ve hea rd comments about the beautiful shapes of today’s cars. Shapes that look as if they are cutting the air; that f low through the landscape in smooth curving lives. All made possible for the first time by the recent evolution of four different technologies. First was simulation technolog y. Then there was the revolution in design technique. The third revolution was in processing technology. And there’s one more reason. This is one of the big secrets

behind the beauty of today’s cars is the new paint technology Lustrous ref lections make the gleaming, gentle curves of a car body so much more attractive. Today’s popular metallic car paints add complex nuances to these graceful ref lections. Just like the shell of a pearl, metallic paint ref lects a single beam of light in many directions. This is the secret behind the complex, nuanced appearance of modern cars. Further improvements in the technology of such specialeffect paints include glitter and iridescent pigments whose colors depend on the angle of illumination and observation. These “gonio-apparent” coatings make interesting demands on the instrumentation meant to measure their color. It was previously impossible to consistently create this impression because there was no way to make the accurate

Lustrous reflections make the gleaming, gentle curves of a car body so much more attractive. Today’s popular metallic car paints add complex nuances to these graceful reflections. color measurements required. Then came Konica Minolta’s multiangle spectrophotometer technology, allowing us to measure precisely the color of each paint. Multiangle spectrophotometers based on this technology can simultaneously measure ref lected light in three directions, allowing us to know the different colors that will be seen at different angles.

A variety of geometric conditions for multiangle spectrophotometers to measure metallic paints have been proposed by various industrial or national standards. Konica Minolta initially developed instruments with two different 3-angle illumination/1-angle receiving geometric conditions -- the 25°/45°/72.5 illumination, 45° receiving geometry deﬁned

by DIN, and the 15°/45°/110° illumination, 45° receiving geometry advocated by Dupont (E. I. du Pont de Nemours & Co.). However, when actual automobile bodies were measured, the results of measurements were unstable with variations. In order to improve stability, Konica Minolta developed the 3-angle circumferential illumination, 1-angle viewing geometry With illumination provided from 18 radial directions, the effect of workpiece orientation on measurement results can be eliminated. Main Features of CM-512m3A ( 3 -a n g le c i r c u m f e r e nt i a l illumination) 1. 3-angle circumferential illumination with highlight/45°/ shade is able to measure pigment color at 45° measurement and is able to evaluate the level of variation of lustrous particles by highlight/shade measurement ratio.

2. Circumferentia l illumination reduces measurement variations due to instrument tilt, providing more stable measurement values. 3. Color-difference limit evaluation With the CM-512m3, the dE00 (CIE 2000) equation is used with parameters fine-tuned based on proprietary know how to provide measurement data for metallic/pearl coatings which correlate well with visual evaluation. 4. User correction factor - Maximizes the inter-instrument agreement of two or more models relative to a selected standard instrument 5. Line Graph Display: Judgment as to whether or not a measured color is within a specific range can be made at a glance, thus simplifying quality-checking procedures. 6. 440 data storage capacity. SpectraMagicNX software suggested as an ideal partner for Graphics & storage. 7. The CM-512m3 can store a total of 440 items of color-difference target data and measurement data. 8. RoHS compliant: Restriction of Hazardous Substances directive compliant The CM-512m3, a multi-angle spectrophotometer which can measure highlight and shade colors simultaneously, is widely used by many companies worldwide in their multilocational plants all over the world in various countries maintaining a single global `quality norm with Ease & Precision ! When it comes to color, light and shape measurement – the world looks to Konica Minolta. Jay Instruments & Systems Pvt. Ltd Web : www.jayinst.com

Shield award for Minda Furukawa Electric

inda Furukawa Electric Pvt Ltd has bagged the ‘Shield’ award for Incoming Quality from MSIL in May. The award was received by K.D. Singh, Jt. President and Maenishi San, President, MFE from Ayabe San – MEO & Director, MSIL- SCM at Kuala Lampur, Malaysia. It was given for achieving Good Quality status at MSIL for the entire year. All suppliers of MSIL competed for this award and MFE bagged it after achieving Zero PPM for the entire year. It was an important award for MFE as it will give them recognition in the Industry & will be a Customer testimony of Good Quality Supplier.

Auto Monitor

24 JUNE 2013

G L O B A L WAT C H

10 years of MINI diesel engines

ne man, one engine, and no end of anniversaries: it was 120 years ago that Rudolf Diesel started developing the compression-ignition engine that was soon to be named after him. The very first prototype completed its test run in August of that same year. The first diesel engine factory was founded 115 years go. The engine invented by Diesel was used in ships for the first time 110 years ago, and it has been 90 years since the first diesel-powered truck went on the road. The MINI was first fitted with a diesel engine ten years ago. Each of these anniversaries is reason enough to celebrate the qualities of the diesel engine - and to commemorate its inventor, who died exactly 100 years ago. Ma ximum efficiency was the driving force that inspired Rudolf Diesel to develop his novel engine. His design was

based on heating the air in the combustion chamber by means of compression to such an extent that the fuel around it would ignite and release large amounts of energy. This is why the diesel engine has such a high level of efficiency. The fact that this principle also generates hallmark MINI driving fun was first demonstrated in the summer of 2003, when the MINI One D was presented as the first diesel model of the premium British small car brand. Its 1.4-litre allaluminium turbodiesel with common rail direct injection had an output of 55 kW/75 bhp. It combined the characteristic MINI go-kart feeling with an average fuel consumption on the EU test cycle of 4.8 litres per 100 kilometres. But this was just the beginning of the diesel engine’s career in the MINI. Two years later the MINI One D was upgraded to 65 kW/88 bhp, and though its performance figures increased,

fuel consumption remained constant. 2007 saw the launch of the next stage of development: the Geneva Motor Show was the setting for the world premiere of the MINI Cooper D. In this model, the new 1.6-litre turbodiesel now delivered 80 kW/110 bhp. The car’s fuel consumption was reduced yet again in spite of a 25 per cent increase in power output, while 4.4 litres per 100 kilometres once again put MINI

ahead of the competition in terms of efficiency. Thanks to MINIMALISM, however, this was still not the last word. The current MINI models with diesel engines are fitted with further refined injection technology, turbochargers with variable turbine geometry, auto start/ stop function, shift point display, brake energy regeneration, ondemand operation of ancillary units, electromechanical steer-

ing and cutting-edge exhaust gas puriﬁcation technology. The result: 120 years after Rudolf Diesel made his pioneering invention, the engine of the MINI Cooper D provides an impressive peak output of 82 kW/112 bhp, a maximum torque of 270 Newton metres at 1,750 rpm , a fuel consumption on the EU test cycle of 3.8 litres per 100 kilometres and CO2 emissions of 99 grams per kilometre.

Ford announces Higher Apprenticeship programme

ord has announced a new four-year Higher Apprenticeship programme to encourage a new generation of engineers into the automotive industry. The Ford Higher Apprenticeship in Product Development Engineering includes a degree-level qualiﬁcation, and offers high-quality training in a range of engineering skills. It provides the opportunity to learn and earn at the same time. The degree-level apprenticeships are provided in conjunction with the University of Greenwich. They provide an alternative route to a degree over the traditional university path, which offers employers a skilled resource while enabling work experience to be combined with further study. Tessa Hougham, apprenticeship manager, Ford of Britain, said, “We are delighted to be offering a Higher Apprenticeship Programme at Ford Motor Company. What is unique about Higher Apprenticeships is the blended approach to learning and working, which enables direct application and reinforcement of new skills. Every participant will develop in-depth technical knowledge and obtain a degree whilst performing work based assignments that add value to our business.”

24 JUNE 2013

Auto Monitor

NEWS

Steep deploys DSM’s Akulon Ultraﬂow in Peugeot 508

oyal DSM, the global life sciences and materials sciences company, has announced that light vehicles will be even lighter when they incorporate oil sumps injection molded in its Akulon Ultraflow polyamide 6. The Peugeot 508 is the first vehicle to benefit from the new DSM solution, and more models will follow. PSA and its road-driving customers are benefitting from a product that not only weighs less than a metal version, but also costs less to make and helps to lower fuel consumption and carbon dioxide emissions during the lifetime of the vehicle. Oil sumps are ideal opportunities for engineering plastics among automotive applications, because they offer potential for significant weight reduction compared with traditional metal versions. But oil sumps also offer a considerable challenge for developers: their exposed posi-

Steep has succeeded in developing a sump that is 60 percent lighter than the metal version it replaces.

Akulon Ultraflow used by Steep for the oil sumps of the new Peugeot 508 engine

tion under the engine means that they have to withstand considerable mechanical stress caused by, for example, stones ﬂying up from the road, and impacts from curb stones if the vehicle is driven off the road onto the pavement. The French tier one supplier Steep Plastique, in Saint-Maurice-de-Beynost, has

Dürr Eco+Paintshop for SGM in Shanghai Promises reduced energy consumption and lower emissions.

or both the interior as well as the exterior coating, SGM uses fully automated paint application, from the primer to the base coat through to the clear coat, thereby reducing paint consumption. The primer application is performed by 20 EcoRP L133 and L030 EcoRP painting robots. Base and clear coats are applied by 44 paint robots in stop and go operation. All robots are equipped with the proven EcoBell2 paint atomizer. Before commencing the paint job, the bodies are prepared and cleansed of impurities by an ionization portal and the EcoClean exterior cleaning system.

EcoDryScrubber Another element in this resource-saving paint shop is the EcoDryScrubber. The dry separation of paint overspray, with extensive air recirculation, ensures up to 60% less energy consumption in the spray booth. Furthermore, this technology does not use water or chemicals. Worldwide, 65 paint lines are already producing or are being equipped with EcoDryScrubber. An important aspect, with regard to the energy efﬁciency of the paint shop, is heat recovery from the spray booth exhaust air and the oven’s exhaust air streams. Dürr’s optimized hall ventilation concept, which is included in the delivery scope, also has a positive effect on this process.

succeeded in developing a sump that is 60 percent lighter than the metal version it replaces. Plus, thanks to the use of highly sophisticated computer simulation software that was developed by Steep speciﬁcally for the application, the sump passes some very demanding application tests at Steep and Peugeot,

including a severe curb impact test, a stone impact test, and an engine drop test. It goes without saying that DSM’s Akulon Ultraflow polyamide 6 also has the necessary oil resistance for the application. The grade used for the application is Akulon Ultraflow K-FHG7, a 35 percent glass reinforced, heat stabilized polyamide 6 with very good flow properties. It offers significant processing advantages compared to standard polyamide 6 products, while maintaining the required mechanical properties. “This

is an important step forward,” says Ralph Ramaekers, Global Segment Manager, Powertrain, at DSM. “Bringing this project to a successful conclusion required a joint team effort by the experts of DSM and Steep, and a very deep understanding of the application requirements. We are pleased the part is now in production. DSM continues to target metal replacement in the engine compartment and in the car body.” Eric Delachambre, Managing Director at Steep Plastique, says: “This important breakthrough demonstrates that DSM is developing the right materials to address the challenges the industry faces. Now, thanks to the signiﬁcant improvements we have made in crash simulation, we will be able to make further progress in applications such as these, leading to vehicles with improved performance and reduced environmental impact.”

Auto Monitor

24 JUNE 2013

INDUSTRY BLOGS

Standardising parts Marty Lariviere

o how many different radiator models does a global car company need? Clearly it needs enough to accommodate different sized engines and cars. A big pick up with an over-sized cylinder eightengine is going to need something different from a subcompact with an under-sized four-cylinder engine. But does that translate to twenty-something radiator designs or ninety-something? Bloomberg reports Toyota has been thinking about this question for radiators and other car parts. In one of President Akio Toyoda’s biggest initiatives since taking over in 2009, the carmaker is winnowing the number of parts it uses and increasing common components across models. The plan will cut both the time and cost for creating new models by as much as 30 percent, according to estimates from Toyota. … In the past, Toyota focused on developing custom parts. It needed 50 types of knee-level airbags because seats for various models

had different proﬁles. By standardizing “hip heights,” as the automaker calls it, across models, Toyota says it can reduce knee airbag variants by 80 percent. As of last year, the automaker had slashed radiators to 21 models from about 100, according to Shinichi Sasaki, Toyota’s global purchasing chief. And the company is reducing the number of cylinder sizes in its engines to six from more than 18 by 2016, the Nikkan Kogyo newspaper reported June 4. Toyota declined to comment on the report. “From now on, Toyota will seek the compatibility of certain parts it uses with standard parts used by many automakers globally,” the company said in a statement outlining its Toyota New Global Architecture, or TNGA, in March. Some of the anticipated beneﬁts here are fairly obvious. For example, the article mentions that standardizing parts like radiators that customers don’t care much about (beyond knowing that the car has one) will free up engineering time to work on body or cockpit design that customers do care about. Similarly, many of the

implementation challenges (such as standardizing hip height) are fairly clear. Customers may not care about knee-level airbags per se, but standardizing those means standardizing some aspect of the interior design. Customer may or may not notice. The most interesting part of this to me is its implications for supply chain risk. Basically there are two countervailing considerations, and Toyota has had to deal with both in recent years. On the benefit side is that standardizing parts allows for global sourcing in the sense that there is more than one place that radiator can come from. Toyota and other (primarily Japanese) automakers got burned by sourcing from a limited set of geographically concentrated facilities when Japan got hit by an earthquake and tsunami in 2011. If all parts can be produced in half a dozen different plants in four different locations, an automaker is somewhat insulated from a natural disaster or other disruption in one particular place. I say somewhat because if Toyota is using many of the same parts as other big automakers, its suppliers’ plants can’t have tons of excess capacity. If, say, a supplier’s Thai factory closes because of flooding, it can shift production for Toyota to a different location but that presumably has to displace some other automaker’s parts. That is, one firm’s successfully executed hedge is going to be someone else’s supply disruption. Given its size, Toyota will probably be taken care of, but this move will also make them more dependent on large global suppliers and Toyota cannot be assured of being the top customer for any crucial supplier. The second aspect of risk here is what happens when there is a problem with some part. More common parts means more correlation across models when something goes wrong. For Toyota, the shift increases the risk of multimillion-vehicle recalls, said Hiroshi Ataka, an analyst at researcher IHS Automotive in Tokyo. Faulty brakes used in multiple models, for instance, would require a recall of far more vehicles than a problem with brakes found simply in, say, the Corolla or Prius. Toyota recalled more than 10 million vehicles in 2009 and 2010 after reports of unintended acceleration. The question is how real the risk of large recalls is. It strikes me as being somewhat second order. Given that Toyota sells such a high volume of some models (like the Corolla), it is exposed to large recalls if it uses the same part over multiple years. Further, to the extent that Toyota seeks “the compatibility of certain parts it uses with standard parts used by many automakers globally,” if things go bad for them, they will go bad for lots of automakers. That may provide some strength in numbers so that a Toyota recall may not stand out across the industry. The author is a blogger and writes frequently for The Operations Room.

Auto Monitor

24 JUNE 2013

INDUSTRY EVENT

Bühler & Alucast jointly organise die casting symposium

ühler, the global leader in Die casting machines, organised a symposium in association with ALUCAST (Aluminium Casters Association) on “New Ecoline Multi Step Die Casting Machine and Lost Core Pressure Die Casting Process”. The company has so far organised four seminars - on each in Bangalore, Pune, Ahmedabad, and Gurgaon. The Bangalore symposium was well attended by over 50 people from the automobile OEM’s and aluminium die casters. Nikam, President, Alucast, Bangalore centre welcomed the participants and introduced the top management team from Bühler Switzerland and Bühler India. Dipak Mane, President, Bühler South Asia welcomed & addressed the gathering and gave a short overview on the New Die Casting Ecoline machines and new innovations on the Lost Core Process. He also spoke on the Bühler’s other product range on the Food side.

New Ecoline Multi Step Die Casting Machine Pagitz Rudolf, Head of Sales – Die Casting Division, Bühler AG, Switzerland made a presentation on the New Ecoline Multi Step Die Casting Machine. The newly developed Bühler Multistep Casting Technology now offers even more flexibility for the filling process. Six freely programmable velocity steps for the first phase make it possible to adjust the casting profile to meet the requirements of each part. The casting profile can now be programmed in absolute units, thanks to Multistep. This makes it even easier to handle the diecasting machine and makes the casting process more transparent. The expanded capability of the Ecoline Multistep machine also includes the “fill test”, programmable break point at the end of second phase for flash free castings and “ Production start Program”. Now with the help of “filling test” user can interrupt

the pre-programmed metal filling cycle to verify the filling pattern of the part at a specific shot piston stroke. The “Production Start-up Program” automatically adjusts the shot profile to minimize damage to the die during warm-up shots. Multistep technology is now available on all the sizes of Ecoline series die casting machines. Marcello Fabbroni, Head of Product Ma nagement & Marketing, Bühler AG, Switzerland made a detail presentation on the new Bühler patented Lost Core Technology Dipak Mane, President, Buhler South Asia Region Process and the process develweight construction in the castings replace the conventionoped by Buhler for making automotive industry and the al steel pressed parts used in the structural parts. A detail video pressure on the automobile forming of chassis of an automowas shown on the whole lost core manufacturers to produce betbile. These castings are weld able. die casting process and samples ter products at lower cost require Use of structural parts in the of the casting done on lost core creative die casting solutions. An automobile chassis reduces the were distributed among the parinnovative answer to this is the weight of an automobile resulting ticipants to have a look & finish “Structural Parts” technology. in less consumption of fuel and for the first time. Structural parts are Al castings reduction in pollution. Thanks to Structural Parts made by using special technology new possibilities which allows for Current trends such as lightdeveloped by Buhler. Structural a diverse range of applications.

Salt Cores What the automotive industry is calling for is cost reduction, integral design (reduction in the number of components) and higher productivity. The Lost Core technology opens up diverse opportunities for this. It has enabled die casting industry to cast hollow parts on pressure die casting machine, which was possible to cast only with gravity or L.P. casting process before. With this technology certain parts of the component to be cast are recessed with a salt core, after the casting the salt core is removed with high pressure water Jet. This makes it possible for permanent mold cast and sand cast components to be replaced and at the same time the full beneﬁts of die casting such as material savings, shorter cycle times and reduced post-processing can be reaped. Lost Core also enables the development of completely new components. The internal shaping can comprise complex designs, the combination of multiple components into one single unit enables high function integration, and the increased design freedom allows for a completely new component design.

Lost Core technology in the Bühler process The Bühler Lost Core process begins with the component design for the salt core application, followed by the mold, aluminium part and salt core concepts. The behaviour of the liquid salt and aluminium in the mold as well as the quality of the component can currently be simulated by software. This eliminates the need for subsequent costly adaptations of the mold. In the creation of the salt core which determines the internal shaping, the optimal salt solution plays a crucial role. The salt core and the aluminium component are produced on a die casting machine with realtime control. This prevents damage to the core during re-casting. The core is removed by pressurized water. Bühler has the necessary know-how and equipment for the successful application of Lost Core technology and is in a position to support the complete process from the initial idea to the production stage. There is interest in the new technology. The 200 plus participants, including representatives of the automotive industry and its suppliers, were won over. Economic aspects were also discussed. The participants were able to meet key people behind the lost core technology, view the video and interact with them during after the presentation. The ﬁnal round of discussions provided an opportunity to talk about what was seen and heard in greater depth, to share experiences, and to discuss the potential of this technology. As a result all of the participants were in agreement: Lost Core will fully open up new opportunities in the coming years and is therefore a promising business opportunity lies ahead.

Auto Monitor

24 JUNE 2013

CLASSIFIEDS

ADVERTISER’S LIST Advertiser’s Name & Contact Details

Pg No

Abhijeet Dies & Tools Pvt Ltd

Advertiser’s Name & Contact Details Aum Darco Coatings

Pg No 40

Advertiser’s Name & Contact Details Dhoot Transmission Pvt Ltd

Pg No 13

Advertiser’s Name & Contact Details Elofic Industries

T: +91-22-28682837

T: +91-9810154764

E: contact@abhijeetplastics.co.in

E: aumdacro@vsnl.net

E: sales@dhoottransmission.com

E: pawans@elofic.com

W: www.abhijeetplastics.co.in

W: www.aumdacro.com

W: www.dhoottransmission.com

W: www.elofic.com

ACE Micromatic Group

1, BC

Ballkings T: +91-161-2534501

E: customercare@acemicromatic.com

E: ballkings@ballkings.com

DSM India Pvt Ltd

Carl Zeiss India (Bangalore) Pvt Ltd 15

Epson India Pvt.Ltd.

T: +186030001600 E: think@eid.epson.co.in W: www.dsm.com/air-management

W: www.acemicromatic.net

ALP Overseas

T: +91-129-4281000

T: +91-80-40200555

Pg No

Ecocat India Pvt Ltd

W: www.epson.co.in

Ferromatik Milacron India Pvt Ltd

T: +91-124-4731500

T: +91-80-43438102

T: +91-129-4266500

T: +91-79-25890081

E: marketing@aIpoverseas.com

E: imtndia@zeiss.co.in

E: alok@ecocatindia.com

E: salesfmi@milacron.com

W: www.alpgroup.in

W: www.zeiss.co.in

W: www.ecocat.com

W: www.milacronindia.com

24 JUNE 2013

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ADVERTISER’S LIST

Advertiser’s Name & Contact Details Fiem Industries Ltd

Pg No 12

Advertiser’s Name & Contact Details J V Exports

Pg No

Advertiser’s Name & Contact Details

Minda Management Services Ltd.

T: +91-9991702453

T: +91-9815089000

T: +91-124-4698400

E: s.narayanan@fiemindustries.com

E: nirapjeet@ymail.com

E: cc@minda.co.in

W: www.fiemindustries.com

W: www.jvexports.co.in

W: www.minda.co.in

Fox Solutions

Jay Instruments & Systems Pvt Ltd

Molex Incorporated

45 Pg No 3

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Pg No

Schenker India Pvt. Ltd.

Siddhapura Engineering Works

T: +91-253-6618100

T: +91-22-23526207

T: +86-28-8789-5088

T: +91-278-2428054

E: sales@foxindia.net

E: sales@jayinst.com

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Fresmak Arnold Precision Engg Pvt.Ltd 25

Jyoti CNC Automation Pvt. Ltd.

BIC

Neosym Industry Ltd

T: +91-80-40224250

T: +91-2827-287081

T: +91-21-37677200

E: francis@fresmak.com

E: info@jyoti.co.in

E: Mktg.pune@neosym.com

W: www.fresmak.com

W: www.jyoti.co.in

G W Precision Tools India Pvt Ltd

Sri Yantra Engineering Agencies (P) Ltd.35

W: www.neosym.com

Komax Automation India Pvt. Ltd.

W: www.yantraengineers. corn

Padmini VNA Mechatronics Pvt. Ltd. 41

Subros Ltd

T: +91-80-40431252

T: +91-124-4599100

T: +91-124-3207398

T: +91-120-2567028

E: info@gwindia.in

E: info.dei@komaxgroup.com

E: sales@padminiengg.com

E: marketing@subros.com

W: www.gwindia.in

W: www.komax.com

W: www.padminivna.com

Gala Precision Engineering Pvt Ltd.

Lanxess India Pvt.Ltd.

Patvin Engineering (P) Ltd

W: www.subros.com

Sumitron Exports Pvt Ltd.

T: +91-22-25821232

T: +91-22-25871000

T: +91-22-27780310

T: +91-11-41410631

E: massfinishing@galagroup.com

E: sales.hpm@lanxess.com

E: patvin@patvin.co.in

E: sumitron@vsnl.com

W: www.galagroup.com

W: www.lanxess.in

W: www.patvin.co.in

W: http://www.sumitron.com

Godrej & Boyce Mfg. Co. Ltd.

Larsen & Toubro Limited

FIC

Prayag Polytech Pvt Ltd

Tata Motors Ltd.

T: +91-22-67962751

T: +91-9967800456

T: +91-11-47262000

T: +91-22-66586195

E: trmktg@godrej.com

E: SM.Haridas@larsentoubro.com

E: delhi@prayagmb.com

E: charu.gulati@tatamotors.com

W: www.godrejtoolings.com

W: www.larsentoubro.com

W: www.prayagmb.com

W: www.tatamotors.com

iASYS Technology Solutions Pvt Ltd 32

Leuze Electronic

Rohan Standox Autolack

Tyrolit India Superabrasive Pvt. Ltd. 28

T: +91-9767896515

T: +91-80-40854444

T: +91-22-65803331

T: +91-80-40953259

E: sales@iasys.co.in

E: manish.sahay@leuze.in

E: sales@spraytec.net

E: subrahmanya.kumar@tyrolit.com

W: www.iasys.co.in

W: www.leuze.in

W: www.spraytec.net

W: www.tyrolit.com

Igus India Pvt Ltd

Meiban Engineering Technologies Pvt Ltd.26

Safexpress Private Limited

Windsor Machines Limited

T: +91-80-39127800

T: +91-80-26860600

T: +1800-113-113

T: +91-79-25841591

E: info@igus.in

E: sales-turning@meibanengg.com

E: vineet.kanaujia@safexpress.com

E: sales.imm@windsormachines.com

W: www.igus.in

W: www.meibanengg.com

W: www.safexpress.com

W: www.windsormachines.com

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

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24 JUNE 2013

THE OTHER SIDE

Getting Personal

In Real Life

with Sanu Vasudevan, Country Sales Manager, TomTom India Private Limited

If not in the auto industry, where would you be? My first love is technology and gadgets. Technology inspires me. If not for the auto industry, I would be in technology. What car do you drive? What do you dream of driving? I drive a Hyundai Verna. I would love to drive a Mini Cooper. Your most recent indulgence... iPad Mini 64 GB, with Wi-Fi and 3G. What are you currently reading? “And the Mountains Echoed” by Khaled Hosseini What do you enjoy doing when not talking auto? I love to be outdoors. I often travel with my family, go on long nature trails, rafting, swimming, besides reading and exercise. An outdoor activity you would miss office for… I love long drives and trekking. Exploring the world and witnessing the changes in topography is a joy. Where did you go for your last holiday? I went on a backpacking trip to Spain and Paris. You get angry when... I wouldn’t call it anger, but it makes me sad to see the environment being abused. We have a relatively low sense of hygiene and every time I travel I see how that impacts our world. I would expect more efforts by institutions and government to educate the masses. What is the one thing you would like to change about yourself? I would like to find more time to do things I love. I am working to increase the time spent on things I love while balancing my priorities at work. The best thing to have happened to you… My wife and kid share my interest in exploring the world. In my opinion, if your family shares your interests, life is more fun!

Illustration: Chaitanya Dinesh Surpur Compiled by: Abhishek Parekh

Sanu Vasudevan has over 15 years of experience in the technology, IT and navigation sectors. At TomTom India, his role is to strategise market penetration, along with positioning TomTom as the leading brand in the navigation industry. He has previously worked at Logitech India and Samsung India Electronics. He is a graduate of Jamia Millia Islamia, New Delhi.

An experience I won’t forget… In this particular year, I was in Manali with my friends during the winter. The snow-capped mountains, trees covered with snow, hot Maggi, feeling really warm after skiing for an hour in the middle of the cold day, futile attempts to light a bonfire in snow, snow biking in unexplored snow lands, helping locals get their trapped vehicles out of snow, sipping a hot cup of tea with locals and striking a conversation with a passer-by are all unforgettable memories, which seem to stand out for me as time passes by.

Regn. No. MH/MR/WEST/20/2012-2014. RNI No. MAHENG/2000/11414 Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001. Date Of Mailing:16th & 17th Fortnightly Issue. Date Of Publication: 13th of Every Month