Auto Monitor - 25 March 2013

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. 09

www.a m onli ne.i n

25 March 2013

NEWS

40 Pages

`50

REPORT

Plug and Play!

How volumes have shrunk!

The car that redefines the future

Pg 12

Scan this code on your smart phone to visit www.amonline.in

Pg 22

ICRA gives us a lowdown

Avant-garde Showcase ADEA winners come together with chief guest Dr Pawan Goenka, President Mahindra & Mahindra Automotive & Farm Equipment, FADA council members, the jury and members of Network 18 Publishing India Ltd.

Top industry heads of the auto industry at the ADEA function.

Y

ou have seen the large picture spread of the Automotive Dealership Excellence Awards 2013, popularly known as ADEA, in the previous issue. In this issue, we bring you a blow-by-blow account of the excellence and hard work that went into building the tempo to the fourth year of the largest awards for the auto dealers community, ADEA, that

ADEA Statistics No. of Applications 550 Consumers Touched 55000 Employees connected 11000 Dealerships Touched 10300

Q

Q

Q

Q

Category 2W 3W 4W CV

Q

Q

Q

Q

Q

Q

Cities covered States covered Brands included Online nomination Reduction in paper consumption Y-O-Y

% 28 12 44 16 45 19 22 65% 75%

lasted a full day at the Hotel Leela on March 9.

While an exhaustive spread of events welcomed dealers through the day, the entire event was perceived by most as path breaking thanks to a new knowledge sharing platform (full report in the following issue) in addition to the grand awards ceremony. The event was attended by the who’s who of the automotive industry, the dealers’ community and a raft of knowledge providers.

The Federation of Automobile Dealers Associations (FADA) has for the last four years played a vital role. As partners with Auto Monitor for this prestigious function, they bring a wealth of experience to this event.

The Steering Committee members, Sandeep Bafna and Vinay Sanghi, were the pillars behind the execution of the awards function.

Work for ADEA began almost eight months prior to the grand evening. After much brainstorming, a concise list of forms were created and sent out to dealers and put up online. This was

done so that it would encourage dealers to fill in the form/s thus slotting them for the respective category where they would want to qualify themselves.

(From L to R): At the Panel Discussion - Managing the Cyclic Changes: Sumit Sawhney, Executive Director, Marketing & Sales, Renault India Pvt. Ltd.; K Srinivas, President, Motorcycle Business, Bajaj Auto; Deepak Pande, Executive Vice President & Head, Vodafone; Sunanda Jayaseelan, Principal Correspondent & Anchor, CNBCTV 18; A Krishnakumar, Managing Director & Group Executive (National Banking), State Bank of India; Sandeep Singh, Deputy Managing Director (Marketing), Toyota Kirloskar Motor & Mohan Himatsingka, President, FADA

Contd. on Pg 8

The Winners - ADEA Main Category Nominees 2-Wheelers

3-Wheelers

4-Wheelers

Commercial Vehicles

Brands

State

Details

Pratham Honda

Honda

Tamil Nadu

Dealer of the year 2012

V J Honda

Honda

Maharashtra

Most Aspiring Dealer of the Year 2012

T. V. Sundram Iyengar & Sons Ltd.

M&M

Kerala

Dealer of the year 2012

Bagga Link Service Ltd.

Bajaj

New Delhi

Most Aspiring Dealer of the Year 2012

T.R. Sawhney Motors Pvt. Ltd.

Maruti Suzuki

New Delhi

Dealer of the year 2012

Automotive Manufacturers Pvt. Ltd.

Maruti Suzuki

Maharashtra

Most Aspiring Dealer of the Year 2012

Automotive Marketing Pvt. Ltd.

VOLVO Eicher

Kerala

Dealer of the year 2012

Anamallais Agencies (Stadium)

VOLVO Eicher

Tamil Nadu

Most Aspiring Dealer of the Year 2012

EDITORIAL Action and Reaction

N

ewton’s third law comes into action at Mahindra.

After years of building diesel sipping burly SUVs and MUVs, the company seeks to give back to nature a first electric offering, the e2o. It technically is their second EV after they acquired the Reva electric car company but that was a small scale operation. Mahindra is betting on the future with the e2o.

We spoke at length with Pavan Sachdeva, head of corporate sales at Mahindra Reva, who is silently confident of the e2o being a successful product. The time hasn’t come yet for EVs to be a mainstream product but it’s a step in the right direction and a good step at that. Compare the e2o to its predecessor and you will notice a stark improvement in making the car, well ‘car-like’. It is easier on the eye, the interiors are plush, it doesn’t feel built to a cost and if you have been following the company, will realize that its carbon footprint is as low as possible. Even the manufacturing facility has been awarded a green building prize. And unlike the handful of Reva i’s built previously, Mahindra will be building 30,000 units of the e2o a year. If Mahindra has its way with the National Council for Electric Mobility, the apex body advising the government on alternative fuel vehicles, the e2o will be more affordable next year. Till then, expect it to continue

being a fringe product.

While this is a good step in the right direction, the company could also coax the government to build charging points, like it has done in Bangalore. Understandably, Bangalore has network points every five kilometres.

Importantly, we are also given to understand that Mahindra will import most of the parts and hence the steep price. Probably, we could also have a slew of vendors who will find this a lucrative business in the near future.

Comments can be sent to jayashree.mendes@network18publishing.com

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QUOTES Dan Akerson, General Motors Chairman and CEO

“We’re a commercial enterprise and our job — this generation of management’s job at General Motors — is to transform the company into the 21st century”

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Bill Ford Jr, Chairman, Ford on mentoring John Elkann, Chairman, Fiat Group

We both have dynamic and extremely talented CEOs. We discuss our relationships with our CEOs. But that isn’t something that either one of us takes for granted — that it will always be fantastic.

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CONTENTS CORPORATE Plug and Play!

12

Mahindra recently launched the e2o, India’s second electric car, which promises to “redefine the Future of Mobility”

12 Audi announces price hike on select models

18

The German luxury car maker has announced average price rise of 2.5 percent across Audi Q Range SUVs, hike on performance range close to 15 percent.

‘Ask’ Mahindra Reva

14

The electric vehicle manufacturer urges the public to ask important questions concerning electric cars and support infrastructure

14

Land Rover upgrades Freelander 2

19

Land Rover has launched the locally-built Freelander 2 Model Year 13 from its facility in Pune to meet the increasing demand from Indian customers

Continental develops new generation lightweight brake boosters

24

Continental has developed a full-aluminium brake booster by reducing wall thickness of the metal parts and producing an extremely small fitting length.

Lanxess to convert production of E-SBR to S-SBR at Brazil plant

Lanxess is converting production of E-SBR used in standard tires to S-SBR used in highperformance “Green Tires” at its site in Triunfo (Rio Grande do Sul) in southern Brazil.

THE OTHER SIDE Slowdown Blues

32

38

16

The current uncertain environment is prompting OEMs and dealers to launch new marketing initiatives even as suppliers turn to aftermarket to push sales

Malind Kapur, VP, Marketing, Product Strategy & Channel & Business Development, Piaggio Vehicles

KMalind Kapur has 25 years of work experience in diverse industries and cultures and currently serves as VP of Marketing for Piaggio.

Auto Monitor

ADEA

8 Contd. from Pg 1

About CARE Ratings CARE Ratings provides the entire spectrum of credit rating that helps corporates raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations.

CARE’s rating and grading service offerings leverage its domain and analytical expertise backed by the methodologies congruent with the international best practices.

CARE Ratings has been assisting Network18 throughout the selection process as well as finalising the winner. They have been diligent in going through the verification process before arriving at the final nominees that are presented to the jury panel.

FADA’s President Mohan Himatsingka, and Sundeep Bafna, zonal chairman, FADA, were constantly ideating and offering suggestions w ith the team at Network18 and with Associate Vice-President Sudhanva Jategaonkar, and Editor of Overdrive and Auto Monitor Bertrand D’Souza thus honing the minutiae details lead-

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25 MARCH 2013

ing to the grand day.

Setting out to work The team at Auto Monitor received more than 550 applications. The applications were then sent out to our Knowledge Partner, CARE Ratings, who screened through the entries for accuracy and eligibility. This was followed by a verification round

through visits and calls made to acquire detailed information as well as verify the credibility of the nominations that would allow them to shortlist the candidates.

The parameters on which the dealers were judged were: Sales satisfaction, service satisfaction, employee satisfaction, CSR initiative, green initiative, and safety initiatives. The idea behind the thorough screening was to recognize best practices and processes that would set apart the various dealers who had sent in entries for a particular category.

Points were then allotted based on the evaluation and tabled. This was then presented to the jury who had decided to meet a few hours prior to the awards show in the evening.

The Jury Six hours before the grand awards presentation, the jurors for the ADEA went into a closed door meeting to screen through the shortlisted candidates. CARE Ratings had already worked out the points for the respective candidate based on the data submitted for the respective category.

The discussions saw some heav y weights of the industry argue and commiserate on various parameters so that a completely unbiased decision could be made and the best man/ company could walk away with the prize.

Early on, the jurors deliberated on the parameter awards category. The awards for purchase, service and employee were based on score provided

by CARE, while the awards pertaining to CSR, Green and Safety Initiatives were based on docu-

The Pillars That Support ADEA Principal Partners Media Partner Insurance Partner Hospitality Partner Workshop Partners

: : : : :

Knowledge Partner Trophy Partner Innovations Partner Luxury Partner Smart Edge Partner Styling Partner Partners with an artistic touch

: : : : : : :

mental proofs provided by the nominees.

In an industry first each shortlisted candidate was invited to showcase a presentation to push his case on why his company should win the award for that category. What the myriad presentation skills showed were the acumen and skill many managers put to their tasks that had brought them to this stage.

In the case of two categories, the jurors found that two companies could share the award and they went ahead with an unanimous decision. The jurors were highly perceptive and grilled the presenters with numerous questions to see how they would stand. Most did well.

Dealers showed staunch loyalty to their vendor/s and this was to their credit. Most dealers explained the suo moto initiatives they have taken over and above those doled out by the vendor. Some dealers have stretched themselves very high to retain customers and that was well appreciated.

Despite the alloted ten minute

State Bank of India, Vodafone CNBC TV18 IndiaFirst Life Insurance The Leela, Mumbai Devilbiss, Fenner, Fujifilm, Pilot, Carazoo CareRatings Pinnacle Ravish Kapoor Luxurion Victorinox M-Tek Canon

briefs most discussions ran well beyond what was prescribed. It was not an easy call for the jury.

The Mega Evening The stage was set. Much preparation had gone into making the evening a scintillating day. The turnout for the event was heartwarming, well attended by the dealers and their families in tow.

Despite the celebratory air you could sense the anticipation the dealers felt. Overheard in conversation, bets being placed as to who would win the coveted tro-

The team at Auto Monitor received more than 550 applications.

The applications were then sent out to our Knowledge Partner, CARE Ratings, who screened through the entries for accuracy and eligibility.

Photographs: Joshua Navalkar, Nachiket Gujar, Varun Anchan

1. Pawan Goenka of M&M delivers a powerful and compelling speech on the state of the auto industry.

2. Mohan Himatsingka, President of FADA delivers a keynote address.

3. A Krishnakumar of State Bank of India listens to Sandeep Singh of Toyota Kirloskar Motor make his point.

4. K Srinivas of Bajaj Auto and Sumit Sawhney of Renault India.

5. Deepak Pande of Vodafone makes a point while Sunanda Jayaseelan of CNBC TV18 and A Krishnakumar listen patiently.

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4

3

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25 MARCH 2013

phy. For most it was indeed a big moment.

The evening began with a welcome speech by Mr Himatsingka who highlighted the need and importance of the awards function that recognizes excellence in auto retail while offering a golden opportunity to automobile dealers to showcase their contribution in promoting innovative business practices, safety & green environment, community service and social welfare.

A Meeting of Minds Staying true to tradition the evening began with the much awaited panel discussion.

The panelists at ADEA were: K Srinivas, President, Motorcycle Business, Bajaj Auto; Sandeep Singh, Deputy Managing Director (Marketing), Toyota Kirloskar Motor; A Krishnakumar, MD & Group Executive (National Banking), State Bank of India; Sumit Sawhney, Executive Director, Marketing & Sales,

Auto Monitor

ADEA Renault India Pvt Ltd; Deepak Pande, Executive Vice President & Head, Vodafone; and Mohan Himatsingka, President, FADA. CNBC T V18’s Sen ior Correspondent & A nchor, Sunanda Jayaseelan, anchored the panel discussion.

The topic for the panel discussion “Managing The Cyclic Changes” was the need of the hour, considering that the industry is facing its worst heat now.

The discussion began with understanding the reason to the industry’s woes. Mr Sawhney offered an interesting insight saying that market conditions being what they are OEMs must create innovative products to lure customers.

Mr Pande pitched in saying that companies must increasingly adopt technologies that will not only help them scale up in terms of manufacturing, but also ensure customer retention and interaction. Mr Himatsingka sought the need for better finance

Above: Jurors deliberate at the jury meeting while poring through the nomination sheets.

Below: The nominees make their presentations to the jury to enable them to decide on the winner.

9 Jury Panel

Ajay Srinivasan Chief Executive, Financial Services, Aditya Birla Group

Dilip Chenoy MD and CEO, National Skill Development Corporation

Jayashree Mendes Executive Editor, Auto Monitor

J P Banerjee Consultant, Business Development, John Deere

Nikunj Sanghi Past President, FADA Convenor of the Jury

Bertrand D’souza Editor Auto Monitor & Overdrive

Revati Kasture GM & Head of Research, CARE Ratings

Auto Monitor

25 MARCH 2013

ADEA

10

K Srinivas, President, Motorcycle Business, Bajaj Auto (SECOND FROM LEFT) and Bertrand D’souza, Editor, Auto Monitor & Overdrive, congratulate the Dealer of the Year in CVs to Automotive Marketing Pvt. Ltd.

A Krishnakumar, MD & Group Executive (National Banking),State Bank of India and Dr Pawan Goenka, President - Automotive & Farm Equipment, M&M present the trophy to the Dealer of the Year in 4-Wheelers to T.R. Sawhney Motors Pvt. Ltd.

Sumit Sawhney, ED, Marketing & Sales, Renault India & Sandeep Khosla, CEO, Network18 Publishing hand over the award to the Dealer of the Year in 3-Wheelers to T. V. Sundram Iyengar & Sons Ltd.

Sandeep Singh, Deputy MD (Marketing), Toyota Kirloskar Motor & Pravin Shah, CEO, Automotive Sector, M&M, award the Dealer of the Year in 2-Wheelers to Pratham Honda.

Dr P Nandgopal, MD & CEO, IndiaFirst Life Insurance hands over the award to Narcinva Damodar Naik for IndiaFirst Corporate Social Responsibility.

Rajesh Motors AG Pvt Ltd bags the award for Green Initiative from Mohan Himatsingka, President of FADA.

Kamal Auto Industries won the award for Sales Satisfaction Index from Dr D.R. Dogra, MD, CARE Ratings.

A tie for the Service Satisfaction Index category saw Nippon Toyota and Automotive Manufacturers Pvt Ltd receive the award from Bertrand D’Souza, Editor, Auto Monitor and Overdrive.

T V Sundram Iyengar & Sons Ltd.and Nidhikamal Automobiles Pvt. Ltd receive the Employee Satisfaction Index award from Sandeep Khosla, CEO, Network18 Publishing.

Deepak Pande, Executive Vice President & Head, Vodafone, congratulates T.R. Sawhney Motors Pvt. Ltd. for winning the Vodafone Tech Savvy Award.

options that will enable OEMs and dealers to see an increase in sales.

Speaking on the need for better infrastructure, Mr Srinivas said that much needs to be done in terms of improving the existing infrastructure that will ensure that vehicles face lower maintenance issues and thus encourage prospective buyers.

Mr Singh said that his company had taken several initiatives in terms of customer interaction and retention considering that they have widened their ambit.

He said that Indian companies need to follow global practices and give the customer an overall overwhelming experience.

Participants generally agreed that the Indian automotive sector is expected to contribute

to ten percent or more of the Indian GDP and will also be an employer of a substantial number of people. India will be the hub of leading small and lowcost car manufacturers and will be an extremely competitive market in which most major OEMs have a significant share.

The challenges for supply chain will be numerous and diverse, ranging from the ability of the existing business model to handle increasing complexity and the building of suitable and necessary infrastructure.

While few murmurs were heard on the government policy of diesel deregulation, most were of the view that till some clarity is provided, it would be futile to discuss it. The big debate saw zealous enthusiasm from the

panelists who were reluctant to leave the dais after time-up was called for.

The discussion was followed by a Q&A session which was answered gracefully.

Mahindra & Mahindra, Sumit Sawhney of Renault, K Srinivas of Bajaj Auto, Dr P Nandgopal, MD & CEO, India First Life Insurance, D R Dogra, MD of CARE Ratings, Deepak Pande of Vodafone, Mohan Himatsingka of FADA, A Krishnakumar of State Bank of India, among others.

There was pin drop silence when Dr Pawan Goenka delivered his speech and his authority said all. He told dealers that while the business is a little volatile, dealers must stick to the chosen path and not deter. “This is not the time to give up. We must stick and make it happen,” he said with a smile.

He agreed that most companies are feeling the heat now and the government’s policy on SUVs has not made it easier, “but we need to emerge stronger and we will.”

That evoked a thunderous round of applause from the audience.

Mohan Himatsingka also urged the dealers to build on relationships, and offered hearty support from FADA to all members that will help them to do business better. He also thanked the dealers for their participation and patience throughout the day.

The evening ended with cocktails and dinner and there was much talk about the entire event. The dealers could not stop gushing.

The Awards Finally, the moment came for the most fascinating part of the evening. The announcement of the winners and runnersup. It was anchored by Sandeep Srikanth, Associate Features Editor at CNBC TV18. Some of the industry personalities who gave away the awards were Dr Pawan Goenka, President - Automotive & Farm Equipment, Mahindra & Mahindra and also Chief Guest for the evening, Sandeep Singh of Toyota Kirloskar Motor, Pravin Shah, CEO, Automotive Sector,

ADEA will be telecast on CNBC-TV18 on April 6th & 7th @ 3pm. Tune in to watch India’s best automotive dealers bag the prestigious ADEA awards.

Pravin Shah, CEO, Automotive Sector, M&M (L) with Sandeep Singh of Toyota Kirloskar Motors, M S Kochar Secretary-General of FADA, Vinay Nevatia (Second from R) and Dr Pawan Goenka, President, FEAS, M&M catch up at the ADEA events evening.

KVS Prakash Rao, Vice President, FADA, (R) with delegates at ADEA.

Rakesh Jain, Committee Member, FADA (centre) in conversation with delegates at the ADEA.

Sandeep Bafna, Committee Member, FADA, Nikunj Sanghi, Former President, FADA and Mohan Himatsingka, President, FADA at the ADEA.

Auto Monitor

25 MARCH 2013

NEWS

12

Plug and Play!

Mahindra recently launched the e2o, India’s second electric car, which promises to “redefine the Future of Mobility”. Anand Mohan reports.

Y

ou use a smartphone during the day, and charge it at night, and that’s what you will do with the e2o. It’s as simple as that, says Pavan Sachdeva, Head - Corporate Sales, Mahindra Reva. The e2o is Mahindra’s first electric car, and the second from the (erstwhile) Reva Electric Car Company’s sta-

ble. When Mahindra bought a majority stake in Reva in 2010, it was a piddly little company that manufactured a handful of electric cars.

Once under the Mahindra umbrella, things were going to change and they have changed very quickly. Within two years, a swanky new 30,000 unit capacity factory was ready to build the

Electric Verito Sachdeva confirmed that the Verito electric is still about 18-24 months away. The testing in on but the Verito is a heavier car and thus will need a larger battery to provide a range similar to the e2o. The company is currently working out the specifications for the electric Verito keeping in mind that the battery doesn’t price it out of contention. The electric Verito will not be manufactured at the Bangalore plant. Mahindra Reva will supply the drivetrain to the Nasik plant where the Verito is currently under production.

first new electric car with the Mahindra badge. The factory was awarded Platinum rating by the Indian Green Building Council (IGBC). From the word go, the company ensured that the car had as low a carbon footprint as possible, from manufacturing to actual use. The tyres are low rolling resistance Apollo tyres manufactured specifically for the e2o, the body is entirely plastic-reinforced fibre,

the steering is mechanical so it doesn’t consume electricity from the battery, and the entire car weighs just 830 kilos.

Mahindra, in a symbolic gesture, launched the e2o at India Gate in New Delhi in the presence of Delhi Chief Minister, Sheila Dixit. The only logical conclusion to draw from the choice of venue for this launch is by being in the face of the government, let them stand up and take notice

of the only car at present being manufactured in India that cares a bit about the environment.

The government set up an apex body in 2011 called the National Council for Electric Mobility.

This body was set up to make recommendations to the government on policy matters that will aid the affordability of electric vehicles. The industry, especially Mahindra, expected this year’s union budget to have policies in

favour of electric vehicles, but that did not happen. The launch of the e2o was held back till the budget, but the company couldn’t wait longer with a car ready for production. Sachdeva commented on the recommendations of the NCEM saying, “Take all the legislations to a logical conclusion and implement the policies.” He added, “The initiatives they (NCEM) are looking at in terms of supporting R&D in electric mobility, giving some kind of a demand insurance, working on supply and infrastructure are some of the exercises that need to be concluded.”

However, Mahindra is creating infrastructure on its own too. Sachdeva says that although it’s a simple process to charge the car at night and use it during the day, people worry about the battery running out of juice. For that, Sachdeva explains that in the city of Bangalore for example, the company has created a grid of charging stations at five kilometre intervals across the city. The company has several partners from banks to malls that have dedicated parking spots for the e2o. Some partners offer charging free of cost and some just charge parking fees.

Sachdeva says that the study Mahindra conducted revealed that 80-85 percent of users don’t drive more than 35 km per day. That’s the reason why the range of the e2o is about 100km on a single five hour charge.

For the export market, the company is developing a larger range e2o, depending on the country. By the end of this year, Mahindra is targeting countries in the sub-continent like Sri Lanka and Nepal that share similar homologation rules. Europe will get the e2o sometime next year.

At `5.96 lakh on-road Delhi, the e2o isn’t cheap. And that’s because the Delhi government has offered subsidies for EVs. But in states that don’t offer subsidies, the e2o will cost between `7-8.5 lakh. Selling 30,000 units of the e2o every year will be a challenge but what works for the company is its large country-wide sales network.

There is no need for extra investment in dealerships, a major drawback for the earlier company, and infrastructure in key cities like Bangalore and Delhi is good enough for prospective customers to consider the e2o a logical purchase.

The car will be sold in eight cities to begin with - Delhi, Bangalore, Mumbai, Pune, Ahmedabad, Kochi, Hyderabad and Chandigarh.

Auto Monitor

25 MARCH 2013

NEWS

14

‘Ask’ Mahindra Reva The electric vehicle manufacturer urges the public to ask important questions Pradeb Biswas Mumbai

M

ahindra Reva has initiated a new campaign which encourages people to ask questions about important issues. Christened the ‘Ask’ movement, the campaign evolved from the idea that progress happens when people start asking the correct questions, and seek answers to them. The slogan penned by the company for their latest cam-

paign is ‘Think, and you will ask.

Ask, and you will rise’.

The campaign invites the public to raise questions about topics pertaining to mobility, infrastructure and technology.

Mahindra Reva intends to sort the questions into issues related to the above topics. The issues would then be taken to interest groups formed by the company to seek answers. According to Mahindra Reva, this movement will assist them in being an incubator of ideas pertaining to the future of mobility.

“We have always encouraged people to ask questions because we believe that our ability to innovate and develop superior products and services is related to the questions we are asked – by our customers and our own employees. With the Ask movement, we hope to

encourage people to constantly think of the questions that really matter and actually voice them, thereby paving the way for the creation of a better world,” said Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra, at the launch of the campaign.

Speaking about the campaign, Chetan Maini, Founder and Chief of Strategy & Technology, Mahindra Reva Electric Vehicles, said, “The roads are getting bigger, cars are getting bigger but there are fewer people in the cars and we are consuming more energy. This is where we started to rethink if this is part of the principle that we have been using. We always asked questions, but we never had a format to it. We have relentlessly questioned ourselves on what we can do to redefine the future of mobility in the years to come.

Today I can see a shift in the automotive DNA compared to

Chetan Maini, Founder and Chief of Strategy & Technology, Mahindra Reva Electric Vehicles

the last 150 years. Things are going from more mechanically driven to electrically driven and the source of energy is changing from fossil fuel driven to electric.

Cars are also becoming more clever and connected. The way that people use vehicles has also changed from having full ownership to shared ownership and other solutions. There has been a change taking place in the automotive ecosystem. The future of mobility looks far cleaner, convenient, clever, connected and cost-effective.”

Asked about the challenges in making electric cars a success, Maini said, “Our challenge is in seeing how some of the government policies could come in proactively and support such ven-

tures. The government’s National Electric Mobility Mission Plan talks about demand incentives and R&D support which would not only help the end customer but also our industry. What the government has put down in the mission plan is very forward in terms of thinking. The challenge is in quickly implementing the policies that the Prime Minister has announced. “ The company says the ‘Ask’ campaign concept developed from the group’s vision of the future of mobility that was unveiled by their chairman, Anand Mahindra. At the unveiling the group had taken a decision to launch a campaign which would co-create and co-imagine the future of mobility.

Mahindra to keep momentum going in UV segment Three models in development, sub-4 metre variant of Verito to come later this year

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ahindra & Mahindra (M&M) is looking to refresh its utility vehicle portfolio and is currently working on three new models that are likely to be launched from 2015 onwards. Though company official did not reveal the positioning of these models, these launches are likely to be in passenger utility vehicle segment and would provide additional options for customers in the UV SUV segment in the `6-20 lakh price bracket.

The company is also looking to launch a sub-4 metre variant of the Verito during the second quarter of this calendar year.

“We are looking to keep the excitement going for our UV customers and are working on synergies in product development and sourcing with our Korean partner Ssangyong. The association could likely lead to a Ssangyong vehicle launched under the Mahindra brand here in the near future,” said Dr Pawan Goenka, President, Automotive and Farm Equipment sectors, Mahindra & Mahindra in a recent interaction with analysts.

He pointed out to the SIAM expectations for FY14 for the overall passenger vehicle industry.

The industry association pointed out that the passenger vehicle industry will grow 9 to 11 percent and in that the UVs will grow more, 15 to 17 percent and cars will grow less, 8 to 10 percent. The UV segment has grown significantly higher -- to the tune of 60 percent -- compared to the passenger car segment. Industry players expect the faster growth of UVs to continue for the next couple of years on the back of new launches and a favourable fuel pricing scenario for diesel vehicles.

The company notched around 11 percent growth in its auto sales numbers which stood at 47,824 units during February 2013 as against 43,087 units during February 2012. The passenger vehicles segment (which includes the UVs and Verito) registered a growth of 14 percent, having sold around 23,421 units in February 2013, as against 20,573 units during February 2012.The company’s domestic sales stood at 44,399 units during February 2013, as against 40,461 units during February 2012, an increase of 10 percent, according to a company release. The four wheeler commercial segment which includes the passenger and load vehicles registered a sale of 15,167 units, while the three wheeler segment clocked 4,803 units in February 2013. Exports for the month of February 2013 stood at 3,425 units.

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25 MARCH 2013

F E AT U R E

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Slowdown Blues OEMs and dealers launch marketing initiatives, suppliers turn to aftermarket to push sales Pradeb Biswas Mumbai

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arch is usually an important month for automobile dealerships as they get a lot of customers eager to make a purchase. The sales numbers reach dizzying heights during this month as owners get to claim depreciation benefits for the entire financial year. But the aftereffects of February’s 26 percent drop in car sales continue to linger. This sales decline is the highest that the Indian auto sector has witnessed in the past twelve years.

Talking to sales people at automobile dealerships across brands and locations makes it clear that the ground situation is quite bad. Sales people are not coy in admitting that there has been a significant drop in sales compared to the same period last year. They say there has been a clear reduction in customer foot-

falls in the showroom.

The last time the auto industry witnessed a sales slump was back in December 2000 when sales were down 40 percent.

According to SIAM data, 1,58,513 cars were sold in February 2013 compared to 2,13,362 cars were sold in the same month a year before. This time around industry analysts are attributing the sales slump to the weak global economy, increase in fuel prices, high interest rates, a lack of clarity in government policies along with a Union Budget that proposed higher taxes for SUVs and imported cars and motorcycles.

“We tried publishing advertisements in newspapers, but still we did not get the customer footfalls that we expected. We also came up with numerous finance schemes to make vehicle ownership easier. Still we did not get a favourable response. This shows that the reported slowdown in automobile sales is for real,” said Sachin Bobate, Senior Sales

The fact is that majority of the companies have hardly registered two digit growth figures and most companies have negative growth.

Consultant, Skoda Autobahn Mumbai.

“During this time last year, we had a lot of customers but this time it is not like before.

Even the popular products from the Maruti stables are having a tough time finding buyers.

Then one can imagine the state of brands with lower popularity among automobile buyers. A lot of buyers from the middle class are staying away from buying. We hope to cover up the sales numbers in the coming days,” added Sachin.

Skoda dealerships say that

sales of the Fabia have been the most affected by the slow down while sales of the Superb has also taken a hit. The sales of Laura have gone down to around 35 percent while the Rapid is doing better than the others. Some dealerships are offering higher incentives to sales executives push sales during the current slowdown in automobile sales.

“There has been a decrease in customer footfalls in our showroom. Earlier customers used to come to our showroom to buy the car. But now we have to go to them to sell our cars. We have a few marketing initiatives lined up to tackle the current slowdown in sales. Nonetheless we have complete support from Volkswagen during this difficult phase,” said Ms. Pranita Porohit, Assistant Marketing Manager, Volkswagen Downtown Mumbai.

Given their demanding and very difficult job, one would expect sales people to always be on the lookout for new oppor-

tunities. And they have already spotted one during this slowdown and are keen to cash in on it. Sales people at automotive dealerships say the advantage offered by the current situation is that their stockyards are full, which means that all models in all colours are available. They feel it will be easier now to lure customers since the waiting period for delivery will decrease drastically.

“From the suppliers’ side, there is definitely a slowdown in the spare parts business even down at the grassroots level. If you go to any garage, the impact of the slowdown is distinctly visible. The fact is that majority of the companies have hardly registered two digit growth figures and most companies have negative growth. Most of the garages are not seeing many customers come forward,” said T.K. Banerjee, Director, Minda Automotive Solutions Limited.

“The situation is different for the accessory market as all car

Even the popular products from the Maruti stables are having a tough time finding buyers.

Then one can imagine the state of brands with lower popularity among automobile buyers. companies are offering accessories in even the basic models to push sales. The flow of customers in the aftermarket has not gone down. There will be a silver lining to the current dark clouds of slowdown only if we get a very good monsoon in the coming months. As of now, this constrictive environment will continue till the first half of the fiscal year,” added Banerjee.

“This current slowdown in automobile sales is likely to last till the current political situation in the country continues. The automobile industry will not go into recession but there will be no improvements in sales either. There is still no clarity on the deregulation of diesel pricing, likely difference between petrol and diesel prices once that happens, and the duty structure is also likely to be changed midway. Unless there is clarity on these issues, it will be very difficult for the industry to grow,” said Vikas Kumar, Director Capgemini India Pvt. Ltd. “The automobile industry is not likely to see any growth till the next year. As people have postponed their buying decisions, the life of the current vehicle has increased. So we do not foresee a particularly bad time for the replacement market. People are now focusing on maintaining the existing vehicle that they have,” added Kumar.

To help dealerships push sales, all automobile companies are offering attractive finance schemes along with discounts. Volkswagen is offering customers a brand new Vento for a down payment of just one rupee. Skoda is giving the Rapid away for a mouthwatering EMI of just `8,999 per month. Chevrolet is giving benefits worth `38,000 on its popular hatchback Beat. Maruti Suzuki is offering a discount on the Swift for the first time since its launch.

Toyota is aiming to lure customers with an exchange bonus of `20,000 and an EMI of `14,999 for its hot seller Innova.

With their stockyards piling up, manufacturers have cut down production. A lot of suppliers have also been hit and have reduced manufacturing. While dealerships are getting complete support from the automobile companies during this phase, suppliers are on their own. Dealerships are resorting to marketing tactics to push sales. Suppliers, meanwhile, have only the aftermarket to resort to.

Auto Monitor

NEWS

18

Audi announces price hike on select models Average price rise of 2.5 percent across Audi Q Range SUVs, hike on performance range close to 15 percent

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erman luxur y car manufacturer Audi today a n nou nced an increase in prices of select models in India. The increase on the Audi Q range SUVs is close to 2.5 percent and the sporty performance range – Audi R8 and Audi RS5 is close to 15 percent. The increase in price is effective from March 16, 2013.

“According to the 2013-14 Union Budget there has been an upward revision in customs duty and excise duty, based on conditional clause on select models.

Due to this development we are forced to make a correction in our prices. We understand the overall market scenario is challenging, however, we are offering the customers customized and

25 MARCH 2013

innovative finance options from Audi Finance which will make their purchase more attractive,” said Michael Perschke, Head, Audi India.

“In spite of the challenges, Audi is the growth driver of the luxury car market in India. We grew by 29 percent in February this year with a sale of 775 units.

Our network is also growing from strength to strength with 25 dealerships pan-India. We opened new world-class Audi showrooms in Mumbai South and Lucknow so far this year. Keeping our performance in mind, we are confident of maintaining sales growth this year”, added Mr. Perschke.

Globally, Audi delivered more than 110,000 units to customers in February– an increase of

3.2 percent. Overall, Audi’s global deliveries over the first two months of the year increased by 9.4 percent to around 221,800 units, with growth in all three of the company’s large sales regions: Asia, North America and Europe. Recently, Audi Group announced an increase in its operating profit to $5.4 billion for the year 2012, a record result in the company’s history so far.

The company has already opened new Audi showrooms in Mumbai South and Lucknow so far this year. Last year, the luxury carmaker opened new showrooms in Raipur, Kanpur, Goa, Navi Mumbai, Coimbatore, Delhi West, Nagpur and Bhopal.

Further developments include Noida and Vadodara among others.

The Audi model range in India includes the new Audi A4, Audi A6, Audi A7 Sportback, Audi A8L, Audi Q3, Audi Q5, Audi Q7, Audi S4, Audi RS5 Coupé, Audi TT Coupé, the super sports car new Audi R8 and the new Audi R8 Spyder available across the country: in Ahmedabad, Bengaluru, Bhopal, Chandigarh, Chennai, Coimbatore, Delhi South, Delhi West, Goa, Gurgaon, Hyderabad, Indore, Jaipur, Kanpur, Kochi, Kolkata, Ludhiana, Lucknow, Mumbai West, Mumbai South, Nagpur, Navi Mumbai, Pune, Raipur and Surat.

Carzonrent Wins National Tourism Award

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ar rental agency Carzonrent (I) Pvt Ltd has won the Best Tourist Transport Provider award in the National Tourism Awards from the Ministry of Tourism Govt of India. The National Tourism award recognises excellence and quality service in the field of tourism.

Since the 1990s the National Tourism awards have been conferred for distinguished service in the travel, tourism and hospitality industries.

These awards aim to encourage different segments of the tourism industry to adopt effective mechanisms for maintaining a healthy competition hence promoting India as a yearround destination.

Mr. Rajiv Vij, CEO & MD, Carzonrent, received the award from the President of India, Mr. Pranab Mukherjee in a ceremo-

ny organized to honour the best in tourism. Commenting on the occasion, Mr. Rajiv Vij said, “This award is a motivation for not only Carzonrent but for every car rental company. We appreciate that ground transportation service is getting its true recognition in the tourism industry.

At Carzonrent, we have always worked towards bringing reliable, convenient, cost-effective and innovative car rental products to the market. This award is a recognition for all the chauffeurs and employees who bring our products to the 6 million customers we handle every year.”

Carzonrent aims at offering the largest range of vehicles and products to the Indian car rental consumer. The company has also announced a strategic investment of `2000 crores to add a fleet of 23,500 cars to the existing 6,500 cars.

Pranab Mukherkee confers the National Tourism award to Mr. Rajiv Vij, CEO, Carzonrent

25 MARCH 2013

COLUMN

Auto Monitor

Land Rover upgrades Freelander 2 New model brings a more premium look and feel to the overall driving experience.

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and Rover has launched t he l o c a l l y- b u i l t Freela nder 2 Model Year 13 from its facility in Pune, India. The Freelander 2 has been built at this plant since May 2011 to meet the increasing demand from Indian customers.

The Freelander 2 gets a premium overhaul, delivering better comfort, convenience and driving enjoyment. New colours, new exterior design features and upgraded equipment levels all contribute to make this SUV even better.

Interior equipment levels soar to new heights in the Freelander 2 with a host of fresh and exciting features including a brand new centre console, 7-inch colour touch-screen with enhanced audio systems from Meridian, and a fully integrated navigation system.

Passive start replaces key dock and there’s a new ‘intelligent’ electric parking brake which adjusts brake force according to the slope the vehicle is parked on. The rear view camera capability is also new to the Freelander 2 and is available as standard.

Exterior design details have been revamped for an integrated and coordinated appearance, including more contemporary lights front and rear using the latest LED technology and a new signature graphic in the front running lights. All-new 17-inch alloy wheels become available on HSE models.

The Freelander 2 gets a premium overhaul, delivering better comfort, convenience and driving enjoyment.

New colours, exterior design features and upgraded equipment all contribute to make it better.

Setting new standards Rohit Suri, Vice President, Jaguar Land Rover India said: “The Freelander 2 has proved to be extremely popular with Indian customers and this new model brings a more premium look and feel to the overall driving experience. This is another step forward for the Freelander 2, where outstanding standard equipment levels, superb design, safety and all-terrain capability continue to set the standards in this class.”

As the most capable SUV in its class, the Freelander 2 offers the durability and sure-footed allterrain breadth of capability both on and off road that only a Land Rover can provide.

The Freelander 2 is available in two derivatives: 2.2 litre diesel TD4 SE (150 PS) priced at `38.67 lak hs and a 2.2. litre diesel SD4 HSE (190 PS) priced at `43.92 lakhs (Prices a re ex-show room Mumba i pre-octroi).

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Auto Monitor

25 MARCH 2013

REPORT

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Volumes shrink across key segments after Maruti Suzuki and Hyundai.

While demand for passenger cars as well as vans continued to languish, Utility Vehicle (UV) segment, which accounts for ~20 percent of industry volumes, continued to witness a healthy volume growth of 34.8 percent YoY in Feb 2013 aided by strong demand for some of the relatively newer models.

Passenger Vehicles Volumes nosedive in Feb 2013 (YoY basis); three consecutive months of negative domestic volume growth The domestic passenger vehicle (PV) industry volumes declined by 16.7 percent YoY in Feb 2013, on the heels of 4.6 percent YoY decline recorded in January 2013 and 1.1 percent decline posted in December 2012.

While overall demand continues to remain dull, the apparently sharp PV volume contraction in Jan 2013 and Feb 2013 was also the result of the high base of Q4 2011-12, a quarter in which the industry had posted volumes of 818,000 units, against average quarterly run rate of 630,000 units recorded during the last eight quarters (the spike in PV volumes in Q4 2011-12 was the result of pre-buying caused by expected hike in excise duty in the Union Budget for 2012-13).

Also, only three PV OEMs, out of a total of 20 OEMs that are currently present in the Indian market, recorded positive YoY growth in Feb 2013. Amongst large players, M&M was the fastest growing OEM in Feb 2013 (12.4 percent YoY growth) who also displaced Tata Motors during the month to become the third largest player

Two Wheelers Domestic volumes shrink by 2.8 percent YoY in Feb 2013; acrossthe-board weakness evident In three out of the last seven months, the domestic 2W industry volume growth has been negative. While the YoY volume decline witnessed in August 2012 (-4.5 percent) and September 2012 (-12.9 percent) was primarily the outcome of contraction in sales of 100cc bikes, the volume decline in the month of February 2013 (-2.8 percent) was attributable to across-the-board sluggishness in demand. The scooters segment and the 125cc motorcycles segment were generally growing at a double-digit rate since the beginning of this fiscal; however, in February 2013, volume growth in even these two segments experienced weakness.

Hero MotoCorp, the market leader, who commanded a share of 45.2 percent in the domestic 2W market in 2011-12, has seen its share drop down to 43.0 percent in 11m 2012-13. At the same time, Honda has continued to grow well in 11m 2012-13, notwithstanding overall industry weakness, on the back of market share gains across its addressable product segments. Even on the exports front, industry performance has been

tepid in the wake of hike interest rates in several countries, tariff increases and trade restrictions imposed by select countries and increase in product prices (to offset reduction in export incentives) by Indian OEMs.

Commercial Vehicles No respite for M&HCV sales; outlook remains weak in the near-term on slowing industrial production The M&HCV segment continued to bore the brunt of weak macro-economic indicators and lower cargo availability, registering a decline of 35 percent in volumes in February 2013 on a YoY basis. The decline in volumes has been among the sharpest so far during the current financial year. Among OEMs, while Tata Motors’ M&HCV volumes fell by a sharp 47 percent on back of slowing demand from its key markets of North & Western region, Ashok Leyland’s volumes declined by 20 percent with Volvo Eicher registering a drop of 14 percent on YoY basis. Our channel check doesn’t suggest any recovery in the near-term given the fact the operators are shying away from expanding their fleets in view of weak cargo availability and relatively subdued freight rates. The strong growth momentum in the LCV (Cargo) segment continues with sub 3.5 (cargo) segment witnessing a growth of 13 percent on YoY basis. Along expected lines, while Volvo Eicher continues to gain market share in the M&HCV segment aided by new model introductions and increasing sales network, Ashok Leyland made a good head start in the LCV segment with its first

A COLD SHOW Q

Passenger car volumes down 26 pc YoY, but growth momentum in UVs continues

Q

Weakness continues in CV segment; down 11 pc YoY in February ‘13

Q

Domestic Two-Wheeler volumes down 2.8 pc with all sub-segments showing weak growth

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Three-Wheeler (passenger) segment benefits from fresh permits, registers 7 pc YoY growth

product offering ’Dost’. With more model introductions over the medium term, we expect it to build upon its market share of 7-8 percent in the LCV segment.

Three Wheelers Domestic passenger carrier volumes grow by 7 percent YoY in Feb 2013; Goods carrier sales (-5 percent YoY) as well as exports (-3 percent YoY) remain weak The 3W industry reported 1.3 percent YoY volume growth in Feb-13, mainly led by healthy 7 percent YoY growth in domestic passenger carriers. Domestic 3W-goods carrier sales continue to be impacted by high financing costs and weak retail sales.

Exports growth has remained weak since import duty hikes by Sri Lanka in Jun-12, although the same have recovered from the lows. For Apr-Feb 13, overall 3W sales have declined 4.5 percent (domestic: +5 percent; exports: -18 percent). In view of current economic slowdown, high financing costs, significant competition from LCV / SCV segment and limited visibility for further fresh permit issuances, ICRA expects the outlook for the three wheeler segment to remain weak

in the near-term.

Tractors Sales continue to slumber Tractor sales have continued to languish in Feb-13, with M&M, the market leader reporting de-growth of 3 percent. While data for entire industry is unavailable, sales are expected to remain weak. Tractor sales have lost traction over the last 1.5 years, where challenges persist in terms of weak farm inflows, somber demand from non-agricultural segment, and increase in cost of ownership marked by high interest rates and hike in prices of tractors and diesel. This coupled with an extended bout of high inflation has resulted in lower disposable income levels of farmers.

Disclaimer: ICR A Ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA Ratings are subject to a process of surveillance, which may lead to revision in ratings. Please visit our website (www.icra.in) or contact any ICRA office for the latest information on ICRA Ratings outstanding.

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25 MARCH 2013

G L O B A L WAT C H

Continental develops new generation lightweight brake boosters For the first time the company has developed a full-aluminium brake booster by reducing wall thickness of the metal parts and producing an extremely small fitting length.

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nternational automotive supplier Continental has launched a new generation of brake boosters. At around half the weight of its predecessor, the new generation brake boosters satisfies requests from vehicle manufacturers for lightweight components to reduce vehicle weight. Nevertheless, regardless of enhancements to brake system functionality, it remains the case that weight means CO2 emissions.

Consequently, even the most high-performance brake system needs to be light and compact.

“For this third generation, we have developed for the first time a full-aluminium brake booster. By reducing the wall thickness of the metal parts and producing an extremely

small fitting length, the booster unit is even lighter and saves even more space than its predecessors,” said Stephan Krebs, Vice President, R&D Actuation Systems in the Hydraulic Brake Systems Business Unit at Continental’s Chassis & Safety Division.

Compared with the classical steel brake booster, the weight of the new generation booster (Booster Gen. III) has been reduced by just about 50 percent or 1,700 grams. It is also 12 percent (15 mm) shorter.

The weight reduction and the improved packaging has been achieved by using thinner metal and by optimizing the component’s internal dimensions. For example, compared with traditional aluminium technologies,

the metal thickness has been reduced by 50 percent – from 2.4 mm to 1.2 mm – without compromising brake booster service life.

The Hydraulic Brake Systems Business Unit at Continental’s Chassis & Safety Division produces single and tandem vacuum brake boosters in all sizes. Every product variant is conventionally manufactured from steel but weight-reduced versions with aluminium shells are also available. The tie-rod version, available in each design variant, offers further reduced weight plus optimized elongation properties. In addition, front bolt designs based on a tie rod basis make them easier to fit.

At a front bolt design the tie-rods are hollow which means that

Hindustan Motors’ sales growth continues

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K Birla Group’s flagship company Hindustan Motors Ltd. (HM) bolstered its sales performance by registering 166.45 percent growth in February visa-vis its sales in February last year (2012). Significantly, the company’s year-on-year sales had surged by 104.37 per cent this January (2013) as well.

Heading steadily towards a

turnaround, HM posted a 147 per cent increase in net profit to `20.36 crore in the quarter ending December 31, 2012, against a net loss of `42.81 crore for the corresponding period in the previous financial year.

Hindusta n Motor s’ Managing Director & CEO, Mr. Uttam Bose, stated, “This has been achieved by leveraging the strengths of brand loyal-

ty and operational excellence.

With steady and continuous growth in HM’s sales numbers, the company’s march towards a revival has become more pronounced and promising.

Regular ramping up of cost-efficient production, increase in sales through expanding distribution and financing networks, and focus on voice of customer have contributed to the sharp

fastening bolts can be inserted from the engine side in order to attach the booster unit to the vehicle bulkhead. This latest, particularly light and short brake booster generation III is available in 8/8”, 8/9”, 9/9” and 9/10” sizes and also as a front bolt version on request.

Brake boosters are vital pre-requisites for innovative safety systems Demand for brake boosters continues unabated because they are an important foundation on which to build innovative safety systems such as Anti-lock Brake Systems (ABS), Electronic Stability Control (ESC) and advanced driver assistance systems. A main focus of Continental’s work is developing

growth in the past few months.

With several strategic and tactical measures striking roots, Hindustan Motors is all set to continue and sustain the improvement trend in the coming months.”

During the month under review (February 2013), HM sold 826 passenger and light commercial vehicles compared with 310 vehicles in February last year. January 2013 witnessed the company selling 748 vehicles compared to a sale of 366 vehi-

safety technologies which either prevent accidents or which at least reduce their severity. One of the most important pre-requisites for this is a good braking system which is able to deliver the braking power demanded as quickly as possible in an emergency; this is the only way for any emergency braking system to function. The essential factor is the interaction between all the brake components in the system as a whole. The brake booster is of prime importance here; if the driver, in an emergency, removes his foot from the accelerator and immediately steps on the brake, the brake booster generates the necessary hydraulic pressure in the brake callipers for effective braking power to be applied.

cles in January 2012.

India’s pioneering OEM manufactures the iconic Ambassador sedan and light commercial vehicle Winner at its fully integrated plant at Uttarpara in West Bengal. Winner is built also at HM’s facility at Pithampur in Madhya Pradesh. Under a technical collaboration with Mitsubishi Motors Corporation of Japan, HM manufactures/assembles and markets Mitsubishi passenger from its third plant at Tiruvallur.

Auto Monitor

25 MARCH 2013

COLUMN

26

Green Marketing Automobiles are one of the main creators of environmental pollution. But they are working at developing products that will help in reducing the pollution levels.

Professor Dr Pradip Manjrekar

Suresh Chandra Padhy Pune

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he concept of green marketing has become a known subject among the various industries. It has become an important subject of concern world over during the last decade or so due to increasing environmental problems such as green house effect, acid rain, land degradation and ozone layer depletion, etc. In the early stage, the ecological pressure came from governmental and NGOs, which forced companies to produce eco-friendly or green products. Now, even consumers have become concerned.

The Indian automotive industry has shown many developments in the recent past. These developments necessitated the entire industry to get customized under the process meant for developing relevant brand image as well as loyalty.

The entire automotive industry is going through a tough competition among the global players, followed by flatto-depressed kind of demand for vehicle, decline of loyalty among the customers towards the brand, and overcapacity leading to fierce competition results in low margins or eroded profit margins of shareholders. Therefore companies are forced to offer different features under lower cost coupled with attractive financing options to attract customers. It has become very difficult for the companies to attract customers because customer are well informed regarding the features, price, different brands through the information explosion / internet and are in a powerful position in negotiating with the manufactures / dealers.

Automotive industry is subject to get accustomed to the process of addressing expectations of customer along with response. In order to meet the gap among customers’ needs and things produced, it is the responsibility of the manufacturers to have larger supply of vehicles under inventory, to offer customer with so-called choice for selection, colour and packaging options and incentives for assisting boost in demand.

As these initiatives are subject to promise, savings related to cost and faster kind of response towards individual customer, it is possible that they fail to meet whole lifecycle of customer’s ownership experience.

Green Marketing According to Theodore Roosevelt, a primary issue that the world faces is conservation of natural resources. Till this issue is resolved, it would make no sense to resolve all the other

problems which mankind today faces.

It was in the late 1980s and early 1990s that the phrase Green Marketing was born. In fact, it was in 1975 that the first conference related to “Ecological Marketing” was conducted by the American Marketing Association (AMA). One of the initial terms related to green marketing “Ecological Marketing” was the outcome of the conference.

It may be stated that Green Marketing occurred in two phases. The initial phase of Green Marketing was correlated to Corporate Social Responsibility (CSR). It was the well known ice-cream producer Ben & Jerry whose financial review first discussed the firm’s influence on the environment. In 1987, the World Commission on Environment and Development described sustainable progress to be fulfilling the requirements of the current times without endangering the ability of future mankind to fulfil their needs.

The next phase of green marketing evolved after 2000. By this time, the majority of organisations were implementing CSR and Triple Bottom Line (TBL).

Furthermore, environmental issues were put forth before society in a manner which could be effortlessly comprehended by everyone. Such easily accessible information helped individuals to evaluate the effects and benefits of shifting to a sustainable environment and the alternatives which could be employed to do so. The green marketing concept in current times prescribes less usage, recycling and reuse (Bradley, 2003).

Green movements as have been initiated and implemented across the globe have not been able to make consumers realise the benefits of green marketing.

The biggest test which green marketing faces is the absence of benchmarks or agreement as to what really is green (Joel Makower). It is not very easy to assess the green claims of a product or enterprise either.

Different consumers, promoters and environmental activists define green in different ways, and at present there is no real agreement regarding the phrase green marketing. This has reduced the development and sales of green goods and services (Joel Markower). The reason behind this is that firms are not keen to publicise their green characteristics and end users often doubt the assertions made by such companies.

As per Alma T. Mintu and Hector R. Lozada, green marketing means using marketing media to assist transactions which fulfil institutional and personal objectives while preserving, protecting and conserving the natural environment.

Green Marketing often includes three commonly used phrases: Green Marketing, Environmental Marketing and

Ecological Marketing. The definition of green marketing according to AMA may be considered to be as under: “Green or Environmental comprises of all actions planned to develop and help any sales or delivery of products which aim to fulfil human requirements and desires such that the fulfilment of such requirements and desires happens with the least adverse influence on the surroundings.”

According to Polonsky, “Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact to the natural environment.” (Polonsky, 1994b, 2) These definitions cover the traditional marketing concepts, that is “all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants”.

According to this, it protects the interest of the organisation as well as the consumer since a voluntary exchange cannot take place unless until both buyer and seller mutually benefit.

The second part of the definition indicates the protection of the natural environment by way of minimising the detrimental effect on environment. To be precise, green claims should state that, they are ‘less environmentally harmful’ rather than saying ‘environment friendly’.

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Importance of Green Marketing According to a study undertaken by Nielsen it was seen that implementing green marketing positively influences the opinions of clients, and more than 50 percent stated that green marketing initiatives by companies compels them to consider the brands presented by such companies.

There are several reasons why an enterprise may decide to employ Green Marketing: Q Organisations perceive environmental marketing to be an opportunity that can be used to achieve its objectives (Keller 1987, Shearer 1990). It appears that all types of consumers, both individuals and institutions are aware of the natural environment and its effect on human beings. In a 1992 study of 16 countries, more than 50% of consumers in each country, other than Singapore, indicated they were concerned about the environment (Ottman 1993).

This indicates that consumers prefer to buy environment friendly products over products which are harmful to the environment. Many firms see these changes in behaviour as an opportunity for green products.

Q Organisations believe they have a moral obligation to be socially responsible (Davis

Q

1992; Freeman and Liedtka 1991, Keller 1987, McIntosh 1990, Shearer 1990). The environment affects each and every human life so society is very much concerned about the natural environment.

Many firms are beginning to realise that they are members of a wider community and therefore must behave in an environmentally responsible manner. This translates into firms which believe they must achieve environmental objectives as well as profit related objectives.

Government bodies are forcing firms to become more responsible (NAAG 1990). The government want to ‘protect’ consumers and society from the consumption of environmentally harmful products.

In order to protect consumers and society, the government must create regulations which generate a marketing environment conducive to the growth of corporate environment and green consumption, both. Recently, the manufacture, sale and use of recycled plastic bags for storing, carrying or packaging food items has been banned in Delhi under the Delhi Plastic Bags (Manufacture, Sale and Usage) and Non Biodeg radable Ga rbage (Control) Act 2000.

Competitors’ environmental activities pressure firms to change their environmental marketing activities (NAAG 1990). Generally firms desire to maintain their competitive position. In many cases firms observe competitors promoting their environmental behaviours and attempt to emulate this behaviour to remain competitive in the market. Competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behaviour.

Cost factors associated with waste disposal or reduction in material usage forces firms to modify their behaviour (Azzone and Manzine 1994).

Firms may also use green marketing in an attempt to address cost or profit related issues. Disposing of env ironmenta lly harmful by-products such as polychlorinated biphenyl (PCB) and contaminated oil is becoming increasing costly and in some cases difficult. Therefore, firms that can reduce harmful wastes may incur substantial cost savings.

Green Brands A green brand is one which is more eco-friendly compared to other similar products available in the market. Such brands are attractive to environmentconscious consumers. Green brands are also those which are unique and which help both clients and businesses to reduce

and save resources and money, or are healthier, or even those which increase the reputation of both individuals and firms.

Climate changes are becoming drastic and most green brands depend on substitute technology, or would be the products of firms which implement green principles in totality.

Green Marketing in the Automobile Industry According to Polonsky (1994), green marketing must encompass several activities which encompass altering the product, modifying the production process, or changing the advertising strategy. According to Miller (2008), there are several premises which have discussed green marketing, but there is not a single premise which actually is successful in describing how to actually turn green. All researchers keep on adding one or more characteristics to the term green marketing. The chief issue which automobile manufacturers today face is how the actual trade setting can go green without deviating from the existing setup.

According to Glorieux-Boutonnat (2004), green marketing is possible only by the endeavour on the part of top management and the need to inform and educate endusers. Ottman (2008) has put forth five simple rules for green marketing: (i) Comprehending and identifying what is actually significant to the end users (ii)Allowing authority to the consumers so that they realise they can contribute to making a difference (iiiWorking in a transparent manner (iv)Sustaining the quality of goods produced (v) Assessing price related issues Automobile enterprises today need to back its end users to go green. As has been stated by Louppe (2006), by using correct advertising policies, an enterprise can convince all its employees, end consumers, channel partners and so on to become aware of the dangers to the environment and also how to mitigate the adverse impact of a product on the environment.

A very good system implemented by the automobile industry would be to encourage individuals to purchase cars which are environmentally-friendly. The producers of automobiles, states Maloteaux (2009), know about the global warming crisis. Premiums or additional discounts would help car buyers to purchase such eco-friendly cars even if they are slightly more expensive than standard models.

Another aspect which manufacturers need to consider is the materials they select. While initially a material may seem lighter, thereby lowering the pollution emitted by the vehicle, it may create waste in the manufacturing process or once the car is obsolete.

25 MARCH 2013

Automobile manufacturers must also try to lower poisonous gas emissions on the manufacturing locations or in their plants.

They need to turn their focus towards enhancing fuel efficiency, lowering the fuel consumed, or even make an effort to use substitute products such as solar, thermal or wind plants in their manufacturing plants.

Automobile manufacturers also need to lower liquid waste and employ substitute options to clean up chemicals.

The automobile industry also needs to take serious steps in treating industrial waste.

They need to educate employees in eco-friendly procedures to ensure that they embrace environmentally sustainable practices. Enterprises also need to utilise ground water which can be easily replenished.

Thus it may be inferred that issues relating to environmental matters would be crucial for the automobile industry going forward. The intense competition to create electric vehicles or fuel-efficient vehicles would compel producers to work hard, enhance R&D, and introduce cars which appeal to people, while at the same time not hurt the environment.

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COLUMN life cycle. There is no doubt that automobiles help an individual to easily purchase the requirements or to provide employment, in addition to being a status symbol. At the same time, this sector is also considered to be responsible for the biggest dangers faced by mankind including the following: air pollution, greenhouse gas emissions, blocking of roads due to traffic, death due to accidents, and lack of open spaces due to cars being parked everywhere (Vergragt, 2006).

Hence it has become crucial for the automobile industry to seek solutions to the abovementioned problems and remedy the same.

There have been modifications which the industry has tried to make over the years, but the sector is still dealing with problems linked to the environment and finance in addition to societal issues. According to Orsato and Wells (2006), the intense reliance on fossil fuels and never-ending requirement for raw material has resulted in several environmental issues. Consequently, it is anticipated that this sector would have to deal with several challenges ranging from using of cars to the fundamental processes related to manufacturing.

Here one needs to note that the

Instances of automobile OEMs going green: BMW BMW is an associate of EPA’s National Environmental Achievement Track, which identifies and rewards enterprises for working towards a sustainable environment and performance.

The company is also an associate of the South Carolina Environmental Excellence Program, apart from being on the Dow Jones Sustainability Group Index, which ranks environment friendly firms. The BMW production team has managed to lower CO2 emissions in their plants to a considerable extent. Currently, recycled methane gas fulfils 63% of their energy requirements.

Toyota The company has strived to attain a high recycling rate and zero waste at their production plants. It employs the hybrid technology which helps to enhance fuel efficiency and yet offer superior driving performance. It also uses the 2010 Prius. This was developed from plantderived, carbon-neutral plastics which emit less CO2 during the product lifecycle compared to plastics made purely from petroleum.

Ford Employing sustainable fabric: Ford claims to use 100% recycled fabric seating surfaces, which would help the company to conserve 600,000 gallons of water, 1.8 million pounds of carbon dioxide (CO2) equivalents, and save more than 7 million kilowatt hours of electricity. Ford has developed a new Fumes-to-Fuel system which burns paint fumes in a procedure that generates electricity at the Michigan Truck Plant in Wayne, Michigan.

Reva Reva’s objective is to reduce climate change by producing options which do not pollute the environment in contrast to the traditional cars.

Reva is one of the first firms to produce and market electric vehicles in the world.

Its vehicles are considered to be “Born Green”.

The automotive sector is a predominant sector which consumers are expecting would act in a more conscious and responsible manner. This sector is a driver in terms of employment and enjoys considerable political clout. However, it is the same sector which is considered to be the main cause of pollution in the atmospheres in the cities in modern times. With over 60 crore passenger cars on the road in the world, and over 5 crore passenger cars built each year, it is imperative that automakers make sustainable decisions (Worldmeters, 2009 and 2010). It is not just the large number of vehicles in the world that is cause for concern, but the immense amount of resources needed to manufacture, transport and fuel them. Everybody must consider the impact that each car has during every stage of its

influence on the environment is not a one-off thing for the car industry – this can be witnessed across all stages of the vehicle’s life-cycle. The chief stages of environmental degradation include use of cars and utilisation of fossil fuels. The pressure from stakeholders and consumers are forcing the automobile company to lower emissions and waste all through the life-cycle of the automobile beginning from production to the end process of scrapping an automobile.

Thus, the sector needs to take immediate steps in making itself more responsible towards the environment.

Conclusion At the functional level, green marketing intends to fulfil the requirements of clients while at the same time trying to enhance the environmental quality of life of society overall. To reiterate what has been stated as the Great Law of the Iroquois Confederacy: “In our every deliberation, we must consider the impact of our decisions on the next seven generations.” Green marketing thus denotes fulfilling consumer requirements while conserving our natural environment.

Going green is bound to pos-

27 itively impact not only a brand but also the company. However, there may be a time lag for the differences to be actually visible in terms of profit and loss for the firm. Going green permits a brand to improve its standing in the eyes of clients.

The auto industry is without doubt the largest contributor to environmental pollution. The industry can make significant contributions to improving the quality of the environment. The auto industry needs to implement the following steps to ensure sustainable development: Q Reduce carbon emissions by combustion engines as it increases global warming Q Lower the amount of sulphur dioxide and nitrogen oxide emissions as they lead to acid rainfall and soil pollution Q Produce cars which generate less noise as cars are one of the chief sources of noise pollution especially in urban areas Q Ensure that the limited resources available are optimized while producing cars.

It must be noted that the automotive industry is going to witness a radical transformation under which India is likely to become one of the chief players in the sector. India is likely to be at par with

traditional and current automotive bigwigs such as the United States, Western Europe, Japan, and Korea.

While this transition is taking place, companies have to give due importance to environmental issues. Concern for the environment is likely to result in intense competition with all companies attempting to create and manufacture electric vehicles, encouraged by end consumer demand and government incentives. This also means that one-third of all cars purchased in developed nations in 2020 will not have an internal combustion engine.

Auto manufacturers in India are aware that to survive in the long run, they have to implement strategies which will protect the environment. Ultimately, price is the most crucial factor in the current times for a consumer to purchase an automobile.

However, it is equally important to educate consumers to buy products which are more environment-friendly despite the initial high cost involved.

Professor Dr Pradip Manjrekar is Dean - Business Management, Padmashree Dr D Y Patil University, Navi Mumbai, and Sr HEF member.

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25 MARCH 2013

A U T O M AT I O N

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“Cobots” redefine scope of robot applications

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ndustrial robots have been characterized by high price tags and significant integration requirements. However, an emerging class of robots lowers throughput but provides the distinct advantage of being able to be co-located with human workers. They are also less expensive and require little to no integration or programming.

This new breed of “collaborative robots” or “cobots” cannot compete with traditional robots based on ultimate speed or precision, but they can work safely alongside humans ungated. Such human-assisting robots are, by design, low-speed and low-skill but perform cooperative tasks with human workers directly alongside them, performing tasks such as picking and placing.

Due to their significantly lower prices and integration requirements, these robots are now true options for small- and medium-sized businesses with limited automation skills and budgets. In the mobile solutions space, robots are gaining traction against traditional automated-guided-vehicle (AGV) and fixed-conveyor solutions. Along the spectrum of autonomy, solutions range from one supplier’s coordinated robotic f leet to another’s driverless forklifts.

This expansion of the robotics industry also increases acceptance of automation and new technology into previously untapped and sometimes more resistant or less skilled markets.

A key selling point for these new

classifications of robots is that they do not require significant integration, enabling users to be trained on these typically out-ofthe-box solutions in a matter of days as opposed to months.

Safety standard compliance In the past, serious safety concerns limited acceptance of this type of technology, but the industry is rapidly embracing a more modern, effective safeguarding strategy that evaluates the use of equipment from a task-oriented perspective (i.e., how the operator has to interact with the machinery). This approach lends itself to the use of an integrated system solution that relies on intelligent automation components. It minimizes the risk of operator injury to a tolerable level in specific operational modes of the machine, while allowing the operator to work more efficiently than would be possible using absolute safety measures such as physical guards and interlocks.

Modern safety systems let operators and maintenance personnel access an operating machine’s work zone by setting programmable limits on actuator speeds, forces and torques to mitigate the risk of injury from these devices. Studies performed in Sweden and Japan justify this approach.

These studies concluded that many robot-related accidents do not occur under normal operating conditions but rather during programming, maintenance, repair, testing, setup or adjustment. In most instances, work procedures required the operator or maintenance worker to

Source: IFA website

David Lavieri

Dashboard assembly using collaborative robots

temporarily enter the robot’s working envelope, where unintended operations could result in injuries. Perimeter guarding or light curtains are temporarily overridden, exposing the worker to possible injury as he enters the work zone while the machine is still operational.

Respecting behavior of personnel In contrast, a modern safety approach respects the behavior of factory personnel and implements safety solutions that allow safe access to work zones. This approach enables significant improvements in manufacturing productivity and expands

the market for the new breed of robotic solutions.

The Robotics Industr y Association is in the process of revising the ANSI/RIA R15.06 standard to recognize a class of robots defined as “collaborative robotic systems.” To achieve this, the standard has adopted the safety standards developed for ISO 10218, in which risk assessment is graded on performance levels as outlined in the ISO 13849 machine safety standard.

Collaborative robot capabilities have been modified significantly to comply with the safety standards that address environments in which robots work in conjunction with humans. Lower speeds and

lighter loads, for example, have reduced forces to within tolerable limits of the safety standards, and bump sensors or vision sensors have been incorporated to avoid or mitigate collisions.

The innovations emerging from a new breed of suppliers challenge our traditional view of robotic applications. Clearly, robots can no longer just be considered for repetitive tasks.

Manufacturers need to evaluate the use of robotics in applications that can benefit from dynamic decision making and autonomous behavior.

David Lavieri is a research analyst with ARC Advisory Group.

25 MARCH 2013

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A U T O M AT I O N

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Component manufacturer opens new plant Lenze’s new facility is part of the company’s investments designed to take advantage of the current boost in North American manufacturing, particularly in the automotive industry.

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had the opportunity last week to visit Lenze’s relatively new 100,000 sq. ft. facility in Glendale Heights, Illinois. The site opened in early 2012. Motor assembly is the principal operation performed at this facility. The site has the capacity to build up to 50,000 gearboxes a year. Currently some 14,000 gearboxes are being produced there annually, but the large site was selected specifically for its growth potential.

“We’re very optimistic about 2013 and 2014,” said Chuck Edwards, president of Lenze Americas. “Now’s the time to be aggressive with investments.”

One of the key pieces of motor technology being produced at this facility is a customized, integrated motor/drive made for a major automotive manufacturer. The integrated motor/drive device leverages a custom Protec drive and Lenze motor configuration designed for decentralized motor control along this automotive customer’s new assembly lines.

The use of decentralized intelligence on large production lines is gaining increased acceptance because of the ability to reduce the load on overall system control.

“L en z e’s ex per t i se in mechatronic applications such as this is what helped us win this big automotive application,” said Edwards. The term

mechatronic refers to automation devices that combine mechanical, electrical and software technologies.

Edwards told me the automotive customer (whose name could not be released) that ordered these custom motor/drives did so to power and control the addition of new production lines being added to an existing facility. These new lines are being added in response to the current upturn in automotive manufacturing here in the U.S., which is forecast to continue for at least the next two years.

Explaining the continued upturn in U.S.-based automotive manufacturing, Edwards cited investments by companies such as GM, Fiat and Volkswagen.

“These companies are all making significant investments in the U.S. and Asia now, but not in Europe,” he said.

Market research recently released by MAPI supports Edwards’ assertion of a U.S. automotive ma nufacturing

New lines are being added in response to the current upturn in automotive manufacturing here in the U.S., which is forecast to continue for at least the next two years.

Source: MCA website

Dave Greenfield

resurgence. According to MAPI, overall automotive “production was up 14 percent in the three months ending October 2012 compared with the same period one year ago. Production increased 29 percent for automobiles and showed a 6 percent gain for light trucks and utility vehicles. Auto parts production increased 17 percent over yearago levels.”

M A PI sees t his t rend continuing at a steady pace for at least t his yea r a nd t he nex t.

“Motor vehicles and parts production is forecast to increase 5 percent in 2013 and 4 percent in 2014, a nd t hen g row at a n average 1 percent annua l rate f rom 2015 to 2017. We ex pect auto a nd light t r uck sa les to tota l 15.1 million units in 2013 and 15.6 million units in 2014,

and average 16.5 million units from 2015 to 2017.”

David Greenfield has been covering industrial technologies, ranging from software and hardware to embedded systems, for more than 20 years. His principal areas of coverage for Automation World focus on technologies deployed for factory and process automation.

Auto Monitor

25 MARCH 2013

AUTOPINION

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Auto telematics mkt to see more growth

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he Indian automotive industry is keen to address the growing demands of its increasingly techno-savvy customer base. It is, hence, gradually adopting advanced solutions for navigation and remote vehicle diagnostics. As this sector is still in its inception, there is time before these advanced devices generate enough sales volumes to reduce costs. The outlook, however, remains optimistic. With the entry of low-cost hardware systems imported from China, Korea, and Taiwan, demand for in-dash navigation solutions is expected to double in the coming five years.

Most original equipment manufacturers (OEMs) in the Indian passenger vehicle (PV) industry have vehicles with the option of getting navigation devices installed at the dealer end. OEMs are soon expected to launch new models with factory-fitted navigation devices as a basic feature, which is expected to further increase customer awareness of such devices. Increase in sales volume will assist component manufacturers to further reduce retail prices, as high prices are a growth deterrent.

Using advanced navigation systems as aid Advanced navigation solutions have high market demand.

However, the increasing penetration of smart phones in the Indian market is expected to hinder high volume sales for such standalone portable navigation devices in the long run. Moreover, easy

and free availability of advanced mobile applications that support navigation and provide service support are affecting sales of standalone navigation devices. The increasing availability of low-cost tablets will further reduce demand growth for such devices. Lately, popularity of smart mobile applications such as ‘traffic monitoring’ and ‘optimized re-routing solutions’ has been growing amongst end users, who prefer investing more on such smart phones rather than buying standalone devices.

There is growing demand for optimum technology services from inter-city taxi operations.

Keeping profitability in mind, f leet taxi operators are now looking at optimized Fleet Management Solutions (FMS) to increase their daily kilometre run as well as to reduce operation downtimes. Although FMS, in the form of track and trace solutions, entered the Indian automotive industry a decade ago in 2003, high unit cost and lack of awareness among end users have led to lower than expected growth for telematics in India thus far. Low sales volumes and poor end-user response has forced many solution providers to defer expansion plans in India. Track and trace applications are now gradually picking up among majority of radio cabs and commerciallyoperated fleets, who are coupling their service solutions with FMS.

Remote solution

diagnostics

According to Frost & Sullivan, the infotronics market in India is expected to enter growth phase

only by 2014 and is expected to shift toward FMS usage for operations cost optimization by 2016.

Advanced telematics solutions like remote vehicle diagnostics are expected to be brought into wide usage only by 2016-17.

Demand for such advanced support systems is expected to enter rapid growth phase in 2017.

The vehicle telematics market can be said to be in its infancy now, with further growth expected in 2014-21, and reaching maturity by 2021.

OEMs, especially in the commercial vehicle (CV) industry, have started working on advanced FMS and remote diagnostics solutions, which are expected to take off by 2017.

According to Frost & Sullivan, penetration levels for such advanced solutions are expected to be around 1-3 percent of medium and heavy commercial vehicles (M&HCV) sales volumes by 2016-17. Currently, penetration levels of track and trace devices is close to 2 percent in the CV industry, which is expected to reach 5 percent by 2016-17.

What will work Hitherto, most vehicle engines being mechanically driven, the concept of remote diagnostics could not be implemented.

However, now with Euro III and Euro IV norms in place for CVs and with the expected arrival of Euro V emission standards in India, vehicles will begin to be sold with electronically-governed engines. These will allow implementation of remote diagnostics and advanced telematics solutions for optimizing fleet operations. The CV industry will

thus comprise the major chunk of the demand for advanced telematics solutions in coming years.

Government initiatives like mandating use of GPS trackers in state-run buses, such as by the Delhi Transport Corporation and Himachal Road Transport Corporation, will increase demand for track and trace solutions. As more state transport units begin to follow such guidelines, demand for such devices is expected to rise exponentially.

The transportation sector, as such, is heavily unorganized in India. But, major consolidation is expected to occur in the near future, forcing fleet owners to closely monitor operations using advanced technologies like remote diagnostics, live vehicle path mapping, route mapping, online driving assistance, etc. Fleet owners themselves are yet to take initiatives to incorporate advanced FMS to reduce operations cost. Lack of awareness amongst fleet owners and resistance towards incorporation of IT solutions is restraining FMS growth in the Indian automotive industry.

Mentioned below are drivers and restraints with respect to growth of telematics in the Indian automotive industry:

Drivers s )NCREASING AVAILABILITY OF low-cost products in the aftermarket, imported from China, Korea, and Taiwan s )NCREASING DEMAND FOR BETTER on-time services by end users s )NCREASING FUEL COSTS FORCING fleet owners to optimize operations cost s 'OVERNMENT S INITIATIVE TO enforce usage of GPS trackers

in state-run buses s %ASY AVAILABILITY OF WIDE VARIety of products and solutions

Restraints s ,ACK OF AWARENESS AMONG mEET owners regarding advantages of such devices for optimizing fleet operations s ,ACK OF PAN )NDIA SERVICES and support infrastructure causing operability issues for implementation of telematics solutions s ,OW VOLUME DEMAND HAS already forced many players to defer expansion plans in India s 6EHICLE OWNERS ARE RELUCTANT to invest in FMS s ,ACK OF KNOWLEDGE ON HOW TO use such devices and owners’ resistance toward incorporating IT-enabled solutions s !VAILABILITY OF '03 ENABLED maps and assisted service solutions in mobile applications

A promising future Despite advantages that come with adoption of telematics services, the market is still in a fledgling state due to reasons mentioned above. Nonetheless, this sector has a promising future. With arrival of cheap hardware from the ASEAN market, constructive government initiatives, and growing consumer base owing to a technologically-inclined Gen-Y, the telematics market is primed for growth by 2016-17. It is evident that telematics is here to stay, it is only a matter of time before it takes centre stage and revolutionizes the Indian automobile market.

Authored by: Automotive & Transportation Practice, Frost & Sullivan

25 MARCH 2013

G L O B A L WAT C H

Auto Monitor

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Hitting the spot: BMW Group Design wins four red dot awards in 2013

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he BMW Group can add another chapter to its successful history in the red dot awards, with BMW Group Design taking home four of the internationally renowned distinctions in the red dot award: product design 2013 competition. The BMW M6 Gran Coupe, BMW 1 Series, BMW 3 Series Touring and BMW R 1200 GS motorcycle were granted red dot design awards in the “Automotive and Transportation” category in acknowledgement of their excellent design quality. The awards will be presented at the red dot gala, taking place in the Aalto Theatre in Essen, Germany on 1 July 2013. The guest list is expected to include more than 1,200 international figures from the worlds of industry, politics and media.

The red dot award was first presented in 1955 and is one of the world’s most respected product design prizes. The jury of 37 internationally acclaimed design luminaries presents the award in recognition of outstanding achievement across the most diverse fields of creative endeavour. And the competition continues to hold considerable appeal, with a total of 1,865

independent designers and large companies from 54 countries putting themselves forward for the red dot award: product design 2013. In all, 4,662 entries were received in the 19 categories.

Four submissions from BMW Group Design earned red dot awards for design quality excellence. The design of the BMW M6 Gran Coupe, for example, embodies an exceptional harmony of athletic and aesthetic appeal. Hallmark M design features inf luenced directly by technical considerations – such as cooling air requirements, chassis geometry, weight balance and aerodynamics – open a clear window into the performance capability of the BMW M6 Gran Coupe. The front of the car is dominated by its large air intakes, standard Adaptive LED Headlights and an M kidney grille designed especially for this model. From the side, the first four-door Coupe in the BMW M GmbH ranks is clearly distinguishable from the BMW M6 Coupe. The low roof line flowing smoothly into the rear, the swage line – which takes in the door openers – and side windows extending well into the C-pillars accentuate the dynam-

Source: BMW website

International jury recognises the excellent design quality of the BMW M6 Gran Coupe, BMW 1 Series, BMW 3 Series Touring and BMW R 1200 GS

BMW M6 Gran Coupe

ically stretched silhouette. The extremely lightweight, impressively strong high-tech material CFRP is used in the construction of the roof. Its visible carbon structure provides an eye-catching feature, as does a dynamic recess in the centre of the roof.

The 3-door BMW 1 Series also presents a compelling proposition with its powerful, typically BMW proportions. Its distinctive looks, headlined by dynamically stretched lines, mark it out both from its compact segment rivals and from its 5-door 1 Series sibling. Wide doors with frameless windows, the “free-standing” side window design – undisturbed even by the B-pillars – and the extremely low-slung look of the roofline allow the car to cut an elegantly sporty figure.

The BMW 3 Series Touring adds

variability and lifestyle qualities to the core values of the brand.

The stretched silhouette and sloping rear window exude a feeling of speed even before the car has moved a muscle, while the smoothly downward-sloping roofline and large tailgate hint at the versatile nature of the interior.

Like the BMW 3 Series Sedan, the front end of the Touring represents a consistent example of design development and – through the single stylistic unit of headlights and kidney grille – precise design.

One of the stand-out aspects of the interior is its “layering” treatment of volumes, i.e. the interplay and offsetting of various layers of the cabin architecture which, together with the customary BMW driver focus, puts all important functions within easy reach.

The new BMW R 1200

GS makes a persuasive case for itself with its well-resolved combination of unmistakable design language and athletic off-road stature. Its familiar GS design platform helps make the new version of the world’s most popular touring enduro a case study in how to take the styling of an iconic motorcycle to another new level of perfection.

The BMW Group has enjoyed plentiful success in the red dot award over recent years. In 2012 BMW collected 11 accolades, including two special “best of the best” prizes for the BMW AirFlow2 helmet and Husqvarna Nuda 900 R motorcycle. In 2011 the BMW 6 Series Convertible and BMW X3 received awards, with the BMW 5 Series Touring capturing the “best of the best” title.

Auto Monitor

25 MARCH 2013

REPORT

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Lanxess to convert production of E-SBR to S-SBR at Brazil plant

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anxess is strengthening its standing as the world’s leading producer of high-performance rubber. Following a feasibility study, the German specialty chemicals company has decided to convert production of emulsion styrene butadiene rubber (E-SBR) used in standard tires to solution styrene butadiene rubber (S-SBR) used in high-performance “Green Tires” at its site in Triunfo (Rio Grande do Sul) in southern Brazil. Lanxess is the first company to carry out such a conversion.

The future capacity for S-SBR in Triunfo will be 110,000 metric tons per year, exactly the same as the current E-SBR capacity.

The switch in production technology represents an investment of EUR 80 million, which will be financed from the company’s cash-flow. Up to 500 temporary workers will be needed during the conversion phase. The plant

will produce the latest grades of S-SBR at the end of 2014. A regular supply of E-SBR to customers will be maintained from the company’s plant in Duque de Caxias (Rio de Janeiro) in Brazil, which has enough production capacity to supply the entire Brazilian E-SBR demand. E-SBR is mainly used in the manufacturing and retreading of truck tires, which means tire carcasses can be reused several times, thus saving raw materials for tire production.

Lanxess is the world’s largest producer of high-performance rubbers, including S-SBR and neodymium-based performance butadiene rubber (Nd-PBR) sold under the Buna brand name.

Global growth for both rubber types is estimated at roughly 10 percent per year, up to 2017, as consumers shift to more fuel-efficient and environmentally-friendly “Green Tires”.

“We are delighted to announce another major synthetic rub-

ber investment in Brazil, which underscores our commitment to our sites and employees here,” said Lanxess board member, Werner Breuers, at a press conference in São Paulo today. “We want to provide our customers with the best technology they deserve in order to fulfill their expansion plans in this important market.”

New capacities to meet strong demand for “Green Tires” Demand for “Green Tires” is being driven by the megatrend mobility, above all in the regions of Asia and Latin America, as the middle class there becomes more affluent. In addition, demand will accelerate as tire labeling continues to be introduced around the world.

November 2012 saw the launch of mandatory tire labeling in the European Union (EU), similar to the consumer labels

found on refrigerators and washing machines. Tires are graded from A (best) to G according to their fuel efficiency and from A to F according to their wet grip.

Rolling noise is also measured.

Therefore, the new legislation provides greater transparency for consumers by highlighting the added value of “Green Tires”.

Japan and South Korea were the first countries in the world to introduce a labeling system.

After a voluntary tire label was introduced in Japan in January 2010, South Korea launched its voluntary labeling program in November 2011 and introduced a mandatory label in December 2012. The Brazilian government aims to implement tire labeling, modeled on the EU standards, as of October 2016, while the topic in China is taking shape as part of the country’s current five-year-plan.

Studies show that 20-30 percent of a vehicle’s fuel consumption and 24 percent of road vehicle’s

CO2 emissions are related to tires. “Green Tires” can reduce fuel consumption by 5-7 percent and have a shorter cost amortization period in comparison to other fuel-saving technologies in cars such as automatic start-stop systems and hybrid drives.

“This means consumers can save real money in times of rocketing gasoline prices,” said Breuers.

Synthetic rubber drives “Green Tires” “Green Tires” can reach their peak performance with formulations containing both S-SBR and Nd-PBR. S-SBR is mainly used in the tread compound of “Green Tires” and Nd-PBR is used in the treads and sidewalls. While both rubbers help to increase fuel efficiency of a tire by reducing rolling resistance, S-SBR helps improves grip on wet roads, while Nd-PBR is highly resistant to abrasion thus making tires more durable.

In the past two years, Lanxess has increased its global capacities for the high-performance rubbers S-SBR and Nd-PBR by 70,000 mtpa. The company has achieved this through debottlenecking measures at its numerous plants.

“We are now moving from the age of tire design to the age of tire materials, which will make the difference in performance,” said Joachim Grub, Head of Lanxess’ Performance Butadiene Rubbers (PBR) business unit. “And here Lanxess is playing a leading role in developing high-performance materials for the tires of tomorrow.”

Last year, Lanxess showcased an “AA-rated” concept tire that was developed by the company in Germany and tested by TÜV SÜD, one of the world’s leading independent technical service organizations. The concept tire comprises the latest generation Nd-PBR and S-SBR technology, as well as rubber additives, to achieve a grade of “A” for both rolling resistance and wet grip under the new EU tire-labeling rules. It is one of the first tires in the world to achieve an AA-rating.

Global asset base for highperformance rubber In the past two years, Lanxess has increased its global capacities for the high-performance rubbers S-SBR and Nd-PBR by 70,000 metric tons per annum. The company has achieved this through debottlenecking measures at its plants in Dormagen, Germany, Orange, USA and Cabo de Santo Agostinho (Pernambuco), Brazil.

In addition, the company produces S-SBR at is facility in Port Jérôme, France.

In addition, the company broke ground for a new world-scale Nd-PBR plant in Singapore last September to serve, above all, the growing Asian tire industry. The plant, representing a total investment of EUR 200 million, will have a capacity of 140,000 metric tons per year and will start up in the first half of 2015.

S-SBR and Nd-PBR belong to Lanxess’ Performance Butadiene Rubbers (PBR) business unit. Alongside tires, performance butadiene rubbers are used for the modification of plastics in the manufacture of High-Impact Polystyrene (HIPS) for injection molding applications. Other applications include golf balls, running shoes and conveyor belts. PBR is part of Lanxess’ Performance Polymers segment, which achieved total sales of EUR 4 billion in the first nine months of 2012.

25 MARCH 2013

Auto Monitor

NEWS

33

The US Auto Industry has solid momentum Rajesh Marwah

T

he US auto industry, which started the year with a bang in January, experienced modest growth in February as automakers witnessed decent sales gains.

Despite concerns over raised taxes and gas prices, the sector enjoyed solid momentum as buyers continued hitting the auto showrooms. The improving housing market is driving automotive sales, even as the economy remains sluggish. The Detroit Three, together with Japanese automaker Toyota, experienced growth in February.

In fact General Motors blew past analyst expectations of a 4.6 percent sales gain to post a handsome 7.2 percent growth.

Let’s take a closer look at the auto giants’ performance.

Looking beyond the numbers Domestic carmakers, including GM, Ford and Chrysler saw remarkable sales growth, while foreign makers Volkswagen and

The key drivers Though the economy is slow, the US auto sector has consistently given positive results in the past few years after it got hit in 2009.

Consumer confidence seems to be strengthening with time, as carmakers are replacing their aging models with new versions.

Newer models with fantastic features offered by automaker have made it very difficult for buyers to resist replacing their old version with the latest one. In fact

Toyota witnessed a moderate increase in sales.

Overall, the auto industry had good momentum, though Honda and Nissan suffered slight declines in their sales numbers.

GM reported its best February since 2008 with a fantastic 7 percent growth against estimates of 4.6 percent. The growth was led by the Chevrolet Silverado pickup, which witnessed a massive sales jump of 29 percent. Supported by solid demand for its crossovers and trucks, the Detroit carmaker sold 224,314 units, up 7 percent from last year’s comparable month. The performance of the top US automaker’s four divisions, Cadillac, Chevrolet, Buick and GMC, were impressive, with Cadillac recording the highest rise in sales at 20.3 percent. One important factor that is driving the company’s sales is the economy’s recovering housing and construction sector. Growth in the housing and construction segment requires businesses to replace older vehicles with new ones. This has become unavoidable given that the average age of US pickup trucks is over 11 years now.

The second largest US automaker, Ford, recorded a 9.3 percent gain in sales. The company could not beat estimates but reported its best February since 2007 by selling 195,822 vehicles during the month. This was driven by strong F-Series pickup sales, which rose 15 percent. The carmaker’s Fusion and Escape also witnessed robust rise of 28 percent and 29 percent, respectively. The two models, Fusion and Escape, enjoyed record high totals for the month and accounted for over a quarter of Ford’s aggregate February sales.

Chrysler reported a modest growth of 4.1 percent for the month and sold 139,015 vehicles. The automaker’s growth slowed down as expected since it stopped manufacturing the Jeep Liberty midsize SUV. The latest Jeep Cherokee is expected to roll out this summer. The automaker’s popular brands Ram Truck, Fiat and Dodge saw sales gains, with Dodge recording the highest sales gain of 30 percent.

Foreign carmaker Volkswagen’s sales were up 2.9 percent to 31,456 units compared to the same period last year. Though VW recorded its best February since 1973, the rate of growth declined sharply given that it posted a 31 percent increase last year in February. On the other hand the world’s top automaker, Toyota, saw sales gains of 4.3 percent and managed to sell 166,377 units.

The auto giant’s growth was helped by sales jump of the crossover RAV4, which rose 5 percent, and the Avalon sedan, which reported a massive sales hike of 63 percent. The company looks pretty confident with its fresh line of fuel efficient vehicles, and is particularly overwhelmed with consumer response for the new Avalon and RAV4.

Despite a stagnated economy, what is it that is driving the overall automotive sales?

the pent-up demand is so strong that the increased gas price and tax are unable to suppress it.

Huge demand that had been held back during the bad years is now driving the auto sales, as both households and businesses are buying new vehicles.

Moreover, easy credit at lower interest rates is another factor that is encouraging customers to buy new vehicles with impressive specifications. Though automakers have reduced discounts and

other similar offers that eat away margins, lower finance rates and reasonable lease installments have made sure to attract buyers to the showrooms.

Final thoughts Massive demand for new models backed by easy credit and a declining unemployment rate is driving US auto sales. The growth pace is expected to stabilize and become moderate for the rest of the year. It is essential

for automakers to offer vehicles with great features and attractive specifications to remain competitive and take advantage of the improving demand, particularly as the European outlook remains dull.

Rajesh is a member of The Motley Fool Blog Network. He frequently writes on the automotive segment. The views expressed by the writer represent the personal opinion of the blogger.

Auto Monitor

A N A LY S I S

36

Passenger Vehicles

OEMs

Passenger Cars 2011-12

2012-13

BMW*

8,510

7,221

Fiat

14,659

6,471

Ford

81,413

70,550

-15.15% -55.86% -13.34% -23.35%

GM

78,403

60,096

HM

2,494

2,854

HSCI

43,093

63,168

HMIL

3,48,168

14.43% 46.59%

16,076

14,133

MSIL

7,56,972

7,69,441

Merc*

6,319

5,006

Nissan

27,111

33,725 10,983

Skoda

27,736

25,909

Tata

2,27,776

1,65,789

369

1,597

TKM

80,914

62,785

Audi*

5,875

6,901

11 24.04%

M&M

23261

28852

Maruti

1,31,625

1,01,011

57,671

84,986

2,12,697

2,14,860

-23.26%

Tata Total

47.36%

1.02%

Two-Wheelers This year has clearly been the year of Honda. Scooters have grown almost 19 percent and motorcycles have grown a phenomenal 54 percent in the past year. The popularity of the scooter segment has risen in the past year due to a flurry of model launches. Honda is a dominant player here but Hero and Suzuki have realised the potential of this segment. TVS and Mahindra 2Wheelers have lost some ground but overall the se gment has grown by 16.19 percent.

The motorcycle segment saw Honda steal marketshare from Hero, Bajaj, TVS and Yamaha since it is the only major motorcycle manufacturer to post increase in sales. Royal Enfield and Suzuki have performed well too posting a growth of 55.73 percent and 73.66 percent respectively.

Harley Davidson has impressed with its fast paced growth in India. This is mainly due to the fact that they are the only big bike manufacturer to set up assembly of a majority of their bikes in India.

Monopoly in the moped segment continues to bear fruit for TVS. The mopeds are selling at a steady pace with a rise of 2.18 percent.

-12.09%

OEMs

2011-12

2012-13

ALL

5,664

30,944

Force HM

21,649

19,732

129

182

M&M

1,14,716

1,28,169

MNAL

9,014

7,164

446.33% -8.85%

41.09% 11.73% -20.52% -77.45%

Piaggio

9,979

2,250

Swaraj

3,980

3,377

2,36,333

2,69,602

8,480

8,102

-15.15%

Tata

14.08% -4.46% 14.53%

4,69,522

Scooter/Scooterettees

1.65%

2011-12

2012-13

24.40%

HML

3,75,216

4,98,632

HMSI

10,86,470

12,91,055

IYM

-6.59%

-

50,410

1,21,768

96,147

-

34,146

SMIL

2,57,489

3,07,435

TVS

4,60,075

3,95,824

M&M 2W

-27.21%

Piaggio

32.89% 18.83%

M&HCVs (PC+GC) OEMs

2011-12

2012-13

ALL

70,813

61,710

-21.04% AMW

8,827

5,958

85

NA

MNAL

3,290

3,403

Swaraj

7,146

6,653

Daimler*

17.46%

Total

58,904

-12.85% -32.50%

19.40% -13.97%

-15.78% 69,939

LCVs (PC+GC)

-20.78%

-22.41%

VW

It could clearly be termed as the year of the LCV. The segment is growing from strength to strength at a pace of 14.53 percent over the same period in the previous year. The Ashok Leyland Dost, Tata Ace and the Mahindra Maxximo have been torch bearers for the segment. M&HCVs haven’t had a good year in comparison. The segment has shrunk 22.79 percent and the segment leader, Tata Motors has seen a 30.54 percent drop in sales, one reason being the overall dip in segment sales and the other being increase in competion as more players are entering the market. Except for fringe player, Mahindra Navistar, every manufacturer is in the red.

The three wheelers segment is growing at a steady pace of 5.05 percent. Bajaj, the largest player in the segment has posted an impressive 12 percent rise in sales and Atul Auto continues to grow as it expands to become a national player froma regional one. Piaggio sales have hit a plateau while M&M sales have dipped a bit.

Total 4,09,944

332.79% Tata JLR

140

VECV - Eicher

371.78% 2,328

2012-13 -92.14%

Force

OEMs

Renault

2011-12

0.25%

3,49,043

M&M

Commercial Vehicles

MPV

The fiscal year is nearing to a close and the month also reveals how manufacturers have performed in the year gone by. What’s clearly visible is the strong showing by Mahindra and Honda. Mahindra has outdone the rest of the industry with its strong diesel product portfolio. Honda, on the other hand, has petrol models in its line up and despite that has grown a phenomenal 46.59 percent due to their popular hatchback, the Brio. The Renault-Nissan group is growing at a steady pace while VW-Skoda have lost out on market share they gained in the previous years. Toyota’s strong performer continues to be the Innova, helping it grow by 36.35 percent in the UV space, offsetting the weak performance shown in the passenger car segment. Tata Motors is seeing one of its worst years in history and there aren’t any signs of revival in the near future. The MPV segment is doing well, but that isn’t enough to keep the company in the green. Fiat, Ford and GM are having a poor run. Fiat is building new bridges post its split with Tata Motors so a dip in sales is understandable with only two two models in its line up. Except for the Figo, Ford is in need of a fast-selling product but the EcoSport is still a few months away so expect the trend to continue. GM’s SAIC products haven’t done too well either.

OEMs

25 MARCH 2013

16.19%

23,01,018 26,73,649

3.43% -6.90% -30.54%

Porsche

Total

-

220

17,98,155

17,14,796

Tata -4.64%

Motorcycles/StepThroughs OEMs BAL

UV OEMs

2011-12

2012-13

Force

4,406

4,285

2,226

1,404

GM

21,084

19,048

HM

1,742

1,879

HDMC

1,489

710

ICML

442

260

M&M

1,81,019

2,39,290

4,995

72,704

Nissan

272

1,105

Renault

333

33,248

1,531

1,079

49,62,510

HMSI

6,97,009

10,75,937

3,25,674

2,76,651

-

2,262

-3.14%

TKM VW

Total

42,659 61,069

41,189 83,267

6

55

3,23,584

4,99,794

VECV - Volvo

581

539

Volvo Buses

611

568

69,902

1,08,859

-41.18%

SMIL

46,557

80,850

TVS

5,72,644

5,15,022

32.19%

Total

73.66%

92,22,666 93,05,708

2011-12

-22.79%

7,02,041

7,17,333

7,02,041

7,17,333

816.67%

2011-12

2012-13

Atul

24,184

28,795

Bajaj

1,85,538

2,07,777

Force

11

1

19.07% 11.99% -90.91%

62,351

60,679

-2.68%

Piaggio

1,70,043

1,68,378

-0.98%

Scooters

15,773

14,518

TVS

13,100

14,614

M&M

2.18% TVS

-7.04%

0.90%

2012-13

-3.45%

OEMs

-10.06%

Mopeds/Electric

36.35%

-7.23%

54.36%

306.25%

-29.52%

2,38,672

-4.37%

3-Wheelers (PC+GC)

RE

OEMs Tata

31,312

-15.05%

9884.38% Skoda

32,744

-3.72%

55.73%

-52.32%

1355.54% MSIL

1246

51,54,134

M&M 2W

271

HMIL

372

HML

IYM 7.86% -12.86%

311

22,82,371

1,28,529

Total 3,09,139

-2.75%

-9.66%

HSCI

23,56,374

2012-13

234.95%

-36.93% Ford

2011-12

1,85,042

VECV - Eicher

Total 4,71,000 4,94,762

-7.96 11.56% 5.05%

2.18%

Total 54.46%

* BMW, Mercedes and Audi monthly data not available

25 MARCH 2013

Auto Monitor

CLASSIFIEDS

37

ADVERTISERS LIST Advertiser’s Name & Contact Details ACE Micromatic Group

Pg No 1, BC

Advertiser’s Name & Contact Details

Pg No

Dhoot Transmission Pvt Ltd

7

T: +91-80-40200555

Advertiser’s Name & Contact Details

Fresmak Arnold Precision Engg Pvt. Ltd 29

E: rag-rao@mipox.co.jp

E: sales@dhoottransmission.com

E: francis@fresmak.com

W: www.dhoottransmission.com

W: www.fresmak.com

DSM India Pvt Ltd

22

T: +91-120-4222229 E: sales@actiaindia.com W: www.dsm.com/air-management

Advantech India

11

Ecocat India Pvt Ltd

25

12

MMC Hardmetal India Pvt Ltd

T: +91-80-40431252

T: +91-80-23516083

E: info@gwindia.in

E: mmcindia@mmc.co.jp

W: www.gwindia.in

W: www.mitsubishicarbide.com

Godrej & Boyce Mfg. Co. Ltd.

18

M-Tek Engineers

T: +91-22-67962751

T: +91-22-66301028

E: info.in@advantech.com

E: alok@ecocatindia.com

E: trmktg@godrej.com

E: mtekengineers@gmail.com

W: www.advantech.in

W: www.ecocat.com

W: www.godrejtoolings.com

32

Jyoti CNC Automation Pvt. Ltd.

T: +91-22-30034650

T: +91-09819552270

T: +91-2827-287081

E: adea@network18publishing.com

E: engexpo@infomedia18.in

E: info@jyoti.co.in

W: www.adea.in

W: www.engg-expo.com

W: www.jyoti.co.in

Bhardwaj Cranes Pvt. Ltd

28

Ferromatik Milacron India Pvt Ltd

19

Larsen & Toubro Limited

13

30

T: +91-129-4266500

Engineering Expo

33

W: www.mipoxindia.com

G W Precision Tools India Pvt Ltd

T: +91-80-23374567

Automotive Dealership Excellance Awards 34

Pg No

Mipox Abrasive India Pvt. Ltd. T: +91-80-65830898

W: www.acemicromatic.net

24

Advertiser’s Name & Contact Details

T: +91-80-40224250

E: customercare@acemicromatic.com

Actia India Pvt Ltd

Pg No

W: www.mtekengineers.com

BIC

National Engineering Industries Ltd 17

W: www.nbcbearings.com

FIC

Safexpress Private Limited

6

T: +91-161-2847081

T: +91-79-25890081

T: +91-09967800456

T: +1800-113-113

E: info@bhardwajcranes.com

E: salesfmi@milacron.com

E: SM.Haridas@larsentoubro.com

E: vineet.kanaujia@safexpress.com

W: www.bhardwajcranes.com

W: www.milacronindia.com

W: www.larsentoubro.com

Carl Zeiss India (Bangalore) Pvt Lt

3

Fiem Industries Ltd

16

T: +91-80-43438102

T: +91-9991702453

E: imtndia@zeiss.co.in

E: s.narayanan@fiemindustries.com

W: www.zeiss.co.in

W: www.fiemindustries.com

Delux Bearings Ltd

14

Fox Solutions

W: www.safexpress.com

Mahindra Navistar Automotives Ltd 15 ,20,21

Sushma Industries

27

T: +91-80-28397463 E: marketing@sushmaindustries.com W: www.sushmaindustries.com

W: www.mahindranavistar.com

5

Meiban Engineering Technologies Pvt Ltd 31

Varroc Engineering Pvt Ltd

T: +91-22-24926660

T: +91-253-6618100

T: +91-80-26860600

T: +91-240-2556227

E: info@deluxbearings.com

E: sales@foxindia.net

E: sales-turning@meibanengg.com

E: varroc.info@varrocgroup.com

W: www.deluxbearings.com

W: www.foxindia.net

W: www.meibanengg.com

W: www.varrocgroup.com

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

Not Applicable

23

Our consistent advertisers

Auto Monitor

38

THE OTHER SIDE

Getting Personal with Malind Kapur, VP, Marketing, Product Strategy & Channel & Business Development, Piaggio Vehicles Pvt Ltd If not in the automotive industry, where would be?

In the auto industry. I can’t think of a better industry to work in.

Malind Kapur is V P of Marketing for Piaggio. He has previously worked with Escorts and Force Motors.

Can you tell us more about yourself?

I have worked for 25 years out of which I have spent a decade in the automotive industry. I have also worked in the plastics industry and in the building materials industry.

He holds an MBA in marketing and finance from the Institute of Management Development & Research, and a diploma from Woodlands College, Texas.

What car do you drive and what do you dream of driving?

I drive the Skoda Superb and I dream of driving a BMW or an Audi. There is no question of “dreaming” of driving. I will drive it one day.

Where did you go on your last holiday?

Europe One thing that you would like to change about yourself?

My weight What’s your advice to budding automotive geeks?

Dream!

Illustration: Sachin Pandit

In Real Life

What would you be doing in the auto industry if not doing marketing for Piaggio?

I have been in the industry for ten years and I love this industry. I have changed many industries – I was in the lubricant industry earlier, which is also related to the auto industry.

He has 25 years of work experience in diverse industries and cultures. He lives in Pune.

25 MARCH 2013

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

40